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HomeMy WebLinkAboutMinutes Port Of Corpus Christi Authority Of Nueces County, Tx - 05/21/2019 OFFICIAL MINUTES OF PORT COMMISSION MEETING May 21, 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, May 21, 2019 at 9:00 a.m., for the regular monthly meeting of the Port Commission. Present: Mr. Charles Zahn Mr. Wayne Squires Mr. Richard Valls Mr. Richard L. Bowers Mr. David P. Engel Mr. Wes Hoskins Ms. Catherine Hilliard Present: Mr. Sean Strawbridge Mr. Clark Robertson Mr. Kent Britton Mr. Omar Garcia Ms. Lynn Angerstein Ms. Rosie Collin Mr. Russell Cordo Mr. David Krams Ms. Donna James Spruce Ms. Audre Debler Chief Eric Giannamore Mr. Bennie Benavides Mr. Bland Chamberlain Mr. Javier Davila Ms. Sherry DuBois Ms. Adrianna Escamilla Mr. Matt Garcia Mr. Dan Koesema Ms. Ebony Lotts Ms. Tana Neighbors Ms. Tara Perry Ms. Sharon Richardson Ms. Leslie Ruta Mr. Jeff Starks Ms. Martha Valderrama Others Present: Mr. Leo J. Welder, Jr. Mr. Dane Bruun 5-21-19.min Pg. 1 of 11 Others Present: Mr. Xavier Valverde, Sr. G&H Towing Mr. Joe Guzman STMFTF Mr. Larry Perryman Bay Houston Towing Mr. Foster Edwards San Patricio EDC Mr. Tom Yardley City of Portland Mr. John Green City of Portland Mr. David Cowart Laniea &Assoc. Mr. Roger TeNapel FHR Ms. Joann Ehmann IOP Mr. Keith Smith Gulf Compress Mr. William Goldston ALEC Mr. Jeff Coyrn LJA Mr. John Kenny J.M. Davidson, Inc. Mr. Jon Warren Grace Point Church Portland Mr. Joelle Francois AECOM Mr. Daniel Korus Del Mar College Ms. Jaylin Steinman Del Mar College Mr. Ray Mandriqal De Pancho Villa Coffee Club 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. 5-21-19.min Pg.2of11 6. Minutes 6a. Action: On motion made by Mr. Valls and seconded by Mr. Squires, the Commission approved the minutes of the April 16 and May 2, 2019 Commission meetings in the form presented to the meeting. 7. Public Comment: Comments were received by Dan Korus of Del Mar College and Ray Madrigal de Pancho Villa. 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. The Commission received a presentation from Port Industries of Corpus Christi. 9b. The Commission received a presentation from the Corpus Christi Regional Economic Development Corporation. 9c. The Commission received a presentation from San Patricio County Economic Development Corporation. 9d. A Resolution of Appreciation was read and presented to John LaRue on behalf of the San Patricio County Economic Development Corporation. Action: On motion made by Mr. Bowers and seconded by Mr. Squires the Commission accepted the Resolution and directed that it be made part of the minutes of this meeting. Accordingly, the text of the Resolution is attached to the minutes of this meeting as Attachment One. 10. Open Agenda 5-21-19.min Pg.3of11 10a. Master Services Agreement with LJA Engineering and Service Order No. 1 for engineering services in connection with the Hillcrests Demolition and Site Clearing Proiect: Staff recommended approval of a Master Services Agreement with LJA Engineering, Inc., and Service Order No. 1 in an amount not to exceed $230,000 to provide drafting and engineering services for demolition and site clearing in connection with the Hillcrest and Washington-Coles Voluntary Neighborhood Acquisition and Relocation Program. Action: On motion made by Mr. Bowers and seconded by Mr. Squires, the Commission approved Staff's recommendation. 10b. Construction Contract with Camacho Demolition, LLC for demolition and site cleaning services: Staff recommended that a contract be awarded to Camacho Demolition, LLC in the amount of $309,202.20 for demolition and site cleaning services of the Group 4 properties acquired under the Hillcrest and Washington-Coles Voluntary Neighborhood Acquisition and Relocation Program. Staff also recommended acceptance of Additive/Deductive Bid Item 1 (fill material) at a unit price of$10 per cubic yard, with an allowance of$500.00 for fill material, if needed, and a 5% percent contingency allowance ($15,485.11) for change orders under the contract in accordance with PCCA's standard contingency guidelines for general construction projects. Action: On motion made by Mr. Bowers and seconded by Mr. Valls, the Commission approved Staff's recommendation. 10c. Resolution to approve an Agreement with the Department of the Army for DMPA1: Action: On motion made by Mr. Bowers and seconded by Mr. Valls, the Commission approved the following resolution: RESOLUTION APPROVING A MEMORANDUM OF AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS WHEREAS, a Memorandum of Agreement between the Department of the Army (the "Government"), and the Port of Corpus Christi Authority of Nueces County, Texas ("PCCA"), for Placement of Dredged Material into the Dredged Material Placement Facility has been presented to PCCA's Port Commission for approval; and WHEREAS, Section 217(b) of the Water Resources Development Act of 1996 (33 U.S.C. 2326a(b)) authorizes the Secretary of the Army (the "Secretary") to permit the use of dredged material placement facilities under the Secretary's jurisdiction by Non-Federal Interests and to impose fees to recover capital, operation, and maintenance costs associated with such use; and 5-21-19.min Pg.4of11 WHEREAS, PCCA wishes to place approximately 28,200 cubic yards of dredge material into Dredge Material Placement Area 1 and Herbie A. Maurer Dredge Material Placement Area for maintenance dredging activities in the Inner Harbor; and WHEREAS, PCCA is authorized by Section 60.152 of the Texas Water Code, as amended, to enter into the Memorandum of Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE PORT COMMISSION OF THE PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS, THAT. Section 1. The Port Commission hereby finds and determines that it is necessary and advisable that PCCA enter into the Memorandum of Agreement in substantially the form presented to this meeting. Section 2. The Memorandum of Agreement, in substantially the form presented to this meeting, is hereby approved, and the Chief Executive Officer is hereby authorized and directed, for and on behalf of PCCA, to execute the Memorandum of Agreement. Section 3. The Chairman, the Vice Chairman, the Secretary, and the Chief Executive Officer are each hereby severally authorized and directed to execute, attest, seal and deliver any and all additional certificates, documents or other papers and to do any and all things deemed necessary to carry out the intent and purposes of this Resolution. Section 4. This Resolution is hereby adopted by the Port Commission on May 21, 2019. 10d. Construction Contract to J.M. Davidson LTD for Oil Dock 1 Shoreline Repairs Proiect associated with Hurricane Harvey: Staff recommended that a construction contract be awarded to J.M. Davidson, Ltd. in the amount of $1,156,178.00 for the Oil Dock 1 Shoreline Repairs Project. Staff also recommended acceptance of Additive Bid Item 1 (standby) at a unit price of$6,000 per day, with an allowance of $36,000 for standby charges if needed,and a 6% contingency allowance ($69,370.68) for change orders under the contract in accordance with the PCCA's standard contingency guidelines for marine and rehabilitation projects. Action: On motion made by Mr. Valls and seconded by Mr. Hoskins, the Commission approved Staff's recommendation. 10e. Purchase Order to CED-Columbia Electric for the purchase and delivery of the Bulk Dock 1 Electrical E-House Proiect: Staff recommended 5-21-19.min Pg.5 of 11 approval of a Purchase Order in an amount not to exceed $700,000 to CED- Colombia Electric for the purchase and delivery of the Bulk Dock 1 E-House Project. Staff also recommended that the Director of Engineering Services be granted a 4% contingency allowance ($28,000) in accordance with the PCCA's standard contingency guidelines. Action: On motion made by Mr. Engel and seconded by Mr. Valls the Commission approved Staff's recommendation. Mr. Squires voted against the motion. 10f. Amendment No. 2 to Service Order No. 1 with Mott MacDonald LLC in connection with the Corpus Christi Ship Channel Project: On April 17, 2018, the Commission approved Master Services Agreement No. 18-03 with Mott MacDonald, LLC (Mott) and Service Order No. 1 in the amount of $175,000 to initiate their services. On September 18, 2019, the Commission approved Amendment No. 1 to Service Order No. 1 in the amount of $376,000 to allow the continuation of Mott's work and included surveys to locate existing pipeline infrastructure on the north and south sides of Avery Point and a geotechnical investigation to support limited preliminary design services that would facilitate relocation of the Avery Point pipelines by their owners. Staff recommended approval of Amendment No. 2 to Service Order No. 1 in the form presented to the meeting. Staff advised the Commission that Amendment No. 2 would (i) provide for a $400,000 increase in the compensation payable to Mott to continue the coordination process with pipeline owners, the Federal Government, and the PCCA on the removal or relocation of all the pipelines, including Avery Point, to meet the Channel Improvement Project contracting schedule; and (ii) add $197,218 to the original scope of Service Order No. 1 to complete sub-bottom profiling surveys to verify the location of eleven existing pipelines in the Lower, Upper, and Inner Harbor reaches as requested by the Federal Government, for a total contract amendment not to exceed $597,218. Action: On motion made by Mr. Valls and seconded by Mr. Engel, the Commission approved Staff's recommendation. Mr. Zahn abstained from voting on this item. 10g. First Quarter 2019 Investment Report., The Audit Committee recommended approval of the First Quarter 2019 Investment Report. Action: On motion made by Mr. Engel and seconded by Mr. Hoskins, the Commission approved the First Quarter 2019 Investment Report, in the form presented to the meeting. 10h. First Quarter 2019 Financial Report: The Audit Committee recommended approval of the First Quarter 2019 Financial Report. 5-21-19.min Pg. 6 of 11 Action: On motion made by Mr. Engel and seconded by Mr. Hoskins, the Commission approved the First Quarter 2019 Financial Report, in the form presented to the meeting. 11. Consent Agenda: Individual Commissioners requested that Consent Agenda Items 11 i, 11j, and 11 o be considered separately. Then Mr. Valls moved the approval of the remaining Consent Agenda Items by one vote (the "The Consent Agenda Motion"), in accordance with the respective staff recommendations and agreements furnished to the Commission at the meeting. Mr. Squires seconded the motion and the motion passed without objection. 11a. By approval of the Consent Agenda Motion, the Commission approved the Second Amendment of Lease Agreement with Refinery Terminal Fire Company for the use of an additional 6.37 acres of land on the existing 4.81 acres for a total of 11.18 acres for future expansion of their training facilities located at 3920 Carbon Plant Road, Corpus Christi, Nueces County, Texas. 11b. By approval of the Consent Agenda Motion, the Commission approved the renewal of a Pipeline Easement with Flint Hills Resources Corpus Christi, LLC for an existing 12-inch crude pipeline and a 16-inch crude pipeline each located near the Viola Turning Basin, in Nueces County, Texas. 11 c. By approval of the Consent Agenda Motion, the Commission approved an Easement and Right of Way Agreement with AEP Texas, Inc. for electric service to GCCM Holdings LLC, a 4.3-acre facility located in the North Bank Open Storage Yard, Nueces County, Texas. 11 d. By approval of the Consent Agenda Motion, the Commission approved an 18-month Lease Agreement with Corpus Christi Polymers, LLC for an 8-acre laydown yard located west of the Corpus Christi Polymers, LLC plant site and south of the Nueces River Rail Yard, Nueces County, Texas. 11 e. By approval of the Consent Agenda Motion, the Commission approved an 18-month Lease Agreement with Corpus Christi Polymers, LLC for the West Transfer Facility containing 30,000 SF of warehouse space located at the intersection of Port Avenue and Stroman Road, Nueces County, Texas. 11f. By approval of the Consent Agenda Motion, the Commission approved a one-year Lease Agreement with Gulf Stream Marine Inc., for a 1-acre site located in the southwest corner of the North Side Open Storage Yard, Nueces County, Texas. 11g. By approval of the Consent Agenda Motion, the Commission approved the First Amendment to the Amended and Restated Pipeline Easement Agreement with NuStar Logistics, L.P. to add one 12-inch pipeline connecting NuStar Oil Dock 5-21-19.min Pg. 7 of 11 15 and NuStar Oil Dock 16, located on the north side of the Corpus Christi Turning Basin, Nueces County, Texas. 11 h. By approval of the Consent Agenda Motion, the Commission approved an increase in the contingency in the amount of $19,000 and a Change Order with Hamman Excavating, Inc. in the amount of $19,000 for the Ortiz Center South Parking Lot Improvements Project to bore and tap a waterline under Harbor Drive for irrigation. 11L Staff recommended approval of Amendment No. 1 to Service Order No. 6 in the amount of $89,428 with HDR Engineering, Inc., under Master Services Agreement No. 18-04, for additional engineering design scope associated with PCCA Oil Dock 14 upgrades to Suezmax Capacity Project. After discussion, on motion made by Mr. Valls and seconded by Mr. Squires, the Commission approved Staff's recommendation. 11j. Staff recommended approval of a Change Order, in the form presented to the meeting, in the amount of $167,040.48 with Derrick Construction Inc. for removal of 18 steel piles impacted by embedded timber pile clusters attached to the steel piles that were not included in the original scope of work associated with the Harbor Island Demolition of Existing Docks Project. Staff also recommended approval of a $50,000 increase in the contingency allowance for this contract should it be needed to complete the project. After discussion, on motion made by Mr. Valls and seconded by Mr. Engel, the Commission approved Staff's recommendation. 11 k. By approval of the Consent Agenda Motion, the Commission approved a Change Order in the amount of $204,754 with Bartlett Cocke Beecroft JV for additional design services, pre-construction services and construction services associated with the new Port office facility. 111. By approval of the Consent Agenda Motion, the Commission approved a Service Order in the amount of $103,020 with CH2M Hill Engineers, Inc., under Master Services Agreement No. 18-08, to perform underwater pre and post dredging inspections of Cargo Docks 8, 10, 14 and 15, Oil Docks 1, 3, 4, 7 and 11, and Bulk Dock 3. 11m. By approval of the Consent Agenda Motion, the Commission approved Amendment No. 1 to Consulting Services Contract for additional services in the amount of $12,000 with Tricord Consulting, LLC to continue environmental services for the Air Permit Amendment Application for the Bulk Terminal. 11 n. By approval of the Consent Agenda Motion, the Commission authorized Staff to issue a Request for Proposal for Temporary Employment Services. 5-21-19.min Pg.8of11 110. Staff recommended approval of an Interlocal Agreement in the amount of $88,300 with the Harte Research Institute for Gulf of Mexico Studies at TAMUCC to perform hydrodynamic modeling of the impacts of ship channel improvement projects on storm surge, tidal flows, and salinity in Corpus Christi Bay. After discussion, on motion made by Mr. Valls and seconded by Mr. Squires, the Commission approved Staff's recommendation. 11 p. By approval of the Consent Agenda Motion, the Commission authorized Staff to issue Request for Proposals for third-party environmental services related to development of an Environmental Impact Statement for the Channel Deeping Project. 11q. By approval of the Consent Agenda Motion, the Commission approved a Purchase Order in the amount of $85,000 payable to Lone Star Ports, LLC for Texas Commission on Environmental Quality (TCEQ) Air Permit Application fees for the Harbor Island Terminal in accordance with the approved Lease Agreement. 11r. By approval of the Consent Agenda Motion, the Commission approved a Pipeline Easement with Gray Oak Pipeline, LLC for one 30-inch crude pipeline crossing the Port of Corpus Christi Authority's land located east of McCampbell Road, San Patricio County, Texas 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: Commercial, External Affairs, Operations and Finance. 12b. Mr. Zahn asked for comments from the Commissioners. 13. Recess Open Session and Convene Executive Session: At 11:01 a.m. Mr. Zahn announced the Commission would go into executive session pursuant to, §551.071, §551.072, and §551.087, and of the Texas Government Code, to deliberate agenda items 13a, 13b, 13c, 13d, 13e, 13f, 13g, and 13h which were described in the agenda as follows: 13a. Receive legal advice from PCCA'S counsel in connection (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. (§551.071) 13b. Receive legal advice from PCCA's counsel regarding U.S. Army Corps of Engineers permitting. (§551.071) 5-21-19.min Pg.9of11 13c. Receive legal advice from PCCA's counsel regarding whether the Ingleside zoning ordinances apply to PCCA's Good Hope Dredge Material Placement Area. (§551.071) 13d. Offering economic incentives to a business prospect to locate its business in San Patricio County. (§551.087) 13e. 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) 13f. Selling PCCA real property in San Patricio County. (§551.072) 13g. Receive legal advice from PCCA's counsel regarding the First Amendment to the Chapter 380 Economic Development Incentive Agreement between the City of Corpus Christi, Texas, voestalpine Texas LLC, and PCCA. (§551.071) 13h. Receive legal advice from PCCA's counsel regarding an Interlocal Agreement between the Port of Corpus Christi Authority and the City of Corpus Christi Regarding Development and Building Permitting. (§551.071) 14. At 1:58 p.m., the Chairman reconvened the meeting in Open Session to act on the following agenda items. 14a. First Amendment to the Chapter 380 Economic Development Incentive Agreement between the City of Corpus Christi, voestalpine Texas LLC, and PCCA: Action: On motion made by Mr. Bowers and seconded by Mr. Squires, the Commission tabled this item. 14b. Interlocal Agreement between the PCCA and the City of Corpus Christi regarding development and building permitting: Action: On motion made by Mr. Squires and seconded by Mr. Valls the Commission tabled this item. 14c. Gibbs & Bruns Revised Engagement Letter: Action: On motion made by Mr. Engel and seconded by Mr. Valls, the Commission agreed to the joint representation of PCCA and Sean Strawbridge by Gibbs & Bruns, LLP, in (i) 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 (ii) PCCA v. The Port of Corpus Christi, LP, in Nueces County Court at Law#4, regarding the tradename case and the counterclaims made by The Port of Corpus Christi, LP, in connection therewith. 5-21-19.min Pg. 10 of 11 15. Adjourn: On motion duly made and seconded, the meeting adjourned at 2:01 p.m. 5-21-19.min Pg. 11 of 11