HomeMy WebLinkAboutMinutes Port Of Corpus Christi Authority Of Nueces County, Tx - 07/16/2019 OFFICIAL MINUTES OF PORT COMMISSION MEETING
July 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, July 16, 2019 at 8:15 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
Ms. Catherine Hilliard
Absent: Mr. Wes Hoskins
Present: Mr. Sean Strawbridge
Mr. Clark Robertson
Mr. Kent Britton
Mr. Omar Garcia
Ms. Lynn Angerstein
Ms. Rosie Collin
Mr. Russell Cordo
Ms. Audre Debler
Ms. Natasha Fudge
Ms. Sarah Garza
Capt. Eric Giannamore
Ms. Donna James Spruce
Mr. Tony MacDonald
Ms. Nelda Olivo
Mr. Louis Klusmeyer
Ms. Lisa Hinojosa
Mr. Matt Garcia
Mr. Jacob Morales
Ms. Sonya Sosa Lopez
Ms. Sascha Schwarz-Greiner
Ms. Adrianna Escamilla
Ms. Monique Lerma
Ms. Tana Neighbors
Ms. Sharon Richardson
Others Present: Mr. Leo J. Welder, Jr.
Mr. Dane Bruun
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Others Present: Judge Barbara Canales
Mr. Brent Chesney
Ms. Maggie Turner
Nueces County
Mr. Xavier Valverde, Sr.
G&H Towing
Mr. Joe Guzman
STMFTF
Mr. Larry Perryman
Bay Houston Towing
CDR Jerry Butwid
LCDR Margaret Brown
US Coast Guard
Mr. Joelle Francois
Mr. Adam Sisson
AECOM
Capt. Kevin Monaco
Capt. Mike Kershaw
Aransas/CC Pilots
Ms. Doreen Harrell
Kansas City Southern RR
Mr. Rich Johnson
Mr. Mark Hughes
Phillips 66
Mr. Thomas Moore
Consultant
Mr. Dan Korus
Ms. Jalyn Stineman
Del Mar College
Mr. Keith Smith
Mr. Robert Swise
Gulf Compress
Mr. Grant Dietze
Mr. James Edwards
Mr. Travis Kirkland
JECS
Mr. Donald Volz
Aransas Pas Chamber of Commerce
Mr. Kevin Gibson
Mr. Josh Maekin
Signet Marine
Mr. William Goldston
ACEL
Ms. JoAnn Ehmann
Ingleside On The Bay
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Mr. Marshall Delven
Orion
Ms. Nancy Zuniga
Mr. Fred Dotts
MDR
Mr. Bob Paulison
Port Industries of CC
Mr. Rick Elizondo
GLDD
Mr. Gary Moore
San Patricio County
Mr. Mike Culbertson
CC Regional Economic Development Corp.
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. Valls and
seconded by Mr. Squires, the Commission agreed to consider all the agenda items.
6. Minutes
6a. Action: On motion made by Mr. Valls and seconded by Mr. Squires, the
Commission approved the minutes of the June 18, 2019 Commission meeting in
the form presented to the meeting.
7. Public Comment: No public comments were received.
8. Committee Reports
8a. Audit Committee Report: Mr. Squires reported on the committee's
activities since the last regular Commission meeting.
Long-Range Planning Committee: Mr. Valls reported on the committee's
activities since the last regular Commission meeting.
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Security Committee: Mr. Bowers reported that the committee had not met since
the last regular Commission meeting.
Facilities Committee: Mr. Bowers reported that the committee had not met since
the last regular Commission meeting.
9. Presentations
9a. The Commission received a presentation by the United States Coast Guard
on Coast Guard Ports and Waterways Safety Assessment (PAWSA).
9b. The Commission received a presentation by Judge Barbara Canales on
"Nueces Together", a non-profit organization.
9c. The Commission presented Del Mar College a check in the amount of
$25,000 for their Maritime Program.
9d. The Commission received a commemorative "Cutter Tooth" from Great
Lakes Dredge and Dock.
9e. The Commission received a project overview from Phillips 66 of the
Bluewater Texas Terminal (BWTX) project.
10. Open Agenda
10a. First Amendment to Consulting Services Contract with Berlanpa
Business Consultants: Staff recommended approval of the following
amendments to PCCA's Consulting Services Contract with Berlanga Business
Consultants: (i) the end date of the Contract shall be December 31, 2020; (ii) the
Consultant shall be paid $60,000 for services rendered during the period from
January 1, 2019 to July 15, 2019, and the rate of $10,000 per month; (iii) the
Consultant shall be paid $72,000 for services rendered during the period from July
16, 2019 to December 31, 2019, and the rate of $12,000 per month, plus
reasonable travel and other expenses not to exceed $8,000 without the Authority's
written consent; and (iv) the Consultant shall be paid $144,000 for services
rendered during the period from January 1, 2020 to December 31, 2020, and the
rate of $12,000 per month, plus reasonable travel and other expenses not to
exceed $8,000 without the Authority's written consent.
Action: On motion made by Mr. Squires and seconded by Mr. Valls, the
Commission approved Staff's recommendation.
10b. Professional Consulting Services Contract with Hudson Construction
Consultants, Ltd.: Staff recommended approval, in the form presented to the
meeting, of a Professional Consulting Services Contract with Hudson Construction
Consultants, Ltd. in an amount not to exceed $1,240,000 for project management
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services for the design and construction of the Harbor Island dock and berth
facilities.
Action: On motion made by Mr. Valls and seconded by Mr. Squires, the
Commission approved Staff's recommendation.
10c. Construction Contract with J.M. Davidson Ltd: Staff recommended
award of a construction contract to J.M. Davidson Ltd., in amount of $3,588,863
(Base Bid), for the construction of marine improvements at Oil Dock 14 necessary
to accommodate the berthing and mooring of Suezmax class vessels. Staff
further recommended that the Department of Engineering Services be granted a
5% contingency ($179,443.15)for change orders under the contract in accordance
with the PCCA's standard contingency guidelines for marine and rehabilitation
construction projects.
Action: On motion made by Mr. Engel and seconded by Ms. Hilliard, the
Commission approved Staff's recommendation.
10d. Construction Contract with Rabalais Constructors, LLC: Staff
recommended award of a construction contract to Rabalais Constructors, LLC, in
the amount of $462,000 (Alternate Base Bid), for replacing/upgrading select
existing hazard-rated electrical system equipment/components at Public Oil Docks
1, 2, 3, 4, 7, 11, and 12. Staff also recommended the award of Additive Bid Item 1
for standby charges at a unit price of$2,600 per day with an allowance of$15,600
for standby charges, should they be needed. Staff further recommended that the
Department of Engineering Services be granted an 8% contingency ($36,960) for
change orders under the contract in accordance with the PCCA's standard
contingency guidelines for marine and rehabilitation construction projects. The
total possible construction contract cost for this project is $514,560 based on
Staff's recommendation.
Action: After considerable discussion, Mr. Bowers called the question and
then on motion made by Mr. Valls and seconded by Mr. Squires, the Commission
approved Staff's recommendation without the 8% contingency. Mr. Valls instructed
Staff to begin providing a monthly report to the full Commission on the status of all
contingencies.
10e. Construction Contract with JE Construction Services, LLC: Staff
recommended award of a construction contract to JE Construction Services, LLC,
in the amount of $929,751.25 (Base Bid) for the construction of a new entrance
road to the Gulf Compress. Staff further recommended that the Department of
Engineering Services be granted a 5% contingency ($14,637.56) for change
orders under the contract 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 $307,388.81.
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Action: On motion made by Mr. Engel and seconded by Mr. Valls the
Commission approved Staff's recommendation.
10f. Construction Contract to Camacho Demolition, LLC: Staff
recommended award of a contract to Camacho Demolition, LLC in the amount of
$399,702.50 for demolition and site clearing services of the Group 5 properties
acquired under the Hillcrest and Washington-Coles Voluntary Neighborhood
Acquisition and Relocation Program. Staff also recommended acceptance of
Additive/Deductive Bid Item 1 ata unit price of$10/cubic yard for fill material. Staff
also requested approval of an allowance of $500 (difference between Base Bid
and Evaluated Bid) for use with unit cost adjustments with the accepted
Additive/Deductive Bid Item 1. Staff further recommended that the Department of
Engineering Services be granted a 5% contingency allowance ($20,010.13) for
change orders under the contract in accordance with the PCCA's standard
contingency guidelines for general construction projects. The total construction
contract cost for this project, based on Staff's recommendation, is $420,212.63.
Action: On motion made by Mr. Valls and seconded by Mr. Squires the
Commission approved Staff's recommendation. The Commission requested Staff
provide at the next regular Commission meeting a report on the number of
properties still pending demolition.
10g. Construction Contraction with JE Construction Services: Staff
recommended award of a construction contract to JE Construction Services, in the
amount of $9,672,598.70 (Alternate Base Bid), for the construction of the Rincon
West Storage Yard and Railroad Improvements Project. Staff also recommended
award of Additive Bid Item 1 in the amount of $50,000, the additional cost to
complete this project in six months in lieu of nine months as identified in the Base
and Alternate Bid. Staff further recommended that the Department of Engineering
Services be granted a 2% contingency ($193,451.97) for change orders under the
contract in accordance with the PCCA's standard contingency guidelines for
general construction projects. The total construction contract cost for this project
based on Staff's recommendation is $9,917,050.67.
Action: After considerable discussion, Mr. Engel called the question and
on motion made by Mr. Squires and seconded by Mr. Bowers, the Commission
approved Staff's recommendation without the 2% contingency. Mr. Valls voted
against the motion.
10h. Construction Contract with Mako Contracting, LLC: Staff
recommended rescinding the construction contract, in the amount of$488,638.20,
awarded to Mako Contracting, LLC, on June 18, 2019 for the Joe Fulton
International Trade Corridor Intersection Improvements project. Staff also
requested Commission authorization to return Mako's bid bond. Staff will rebid
this project.
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Action: On motion made by Mr. Engel and seconded by Mr. Squires, the
Commission approved Staff's recommendation and request.
10i. Expenditure of $250,000 in the Promotion and Development Fund.
Staff requested direction from the Commission to spend $250,000 of the money in
the 2019 Promotion and Development Fund to support construction of a 250
square foot observation deck to be used for marine science and coastal ecology
education at the Horace Caldwell Pier in Port Aransas. This project, which will
include a shade structure, roll-down doors, catwalk, and interpretive signage, will
be implemented by Nueces County Parks Department in collaboration with the
Coastal Bend Bays and Estuaries Program. The remainder of the total
construction cost of $750,000 will be leveraged from other sources to include
County Judge and Commissioner Precinct 4 funds.
Action: On motion made by Mr. Squires and seconded by Mr. Bowers, the
Commission approved Staff's request and directed staff to spend $250,000 of the
money in the 2019 Promotion and Development Fund on the Horace Caldwell Pier
observation deck for the purposes described in staff's request.
11. Consent Agenda: A Commissioner requested that Consent Agenda Items 11 b,
11d, and 11i be considered separately. Then Mr. Bowers 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. By approval of the Consent Agenda Motion, the Commission approved
Amendment No. 1 to the Professional Engineering Services Contract for an
additional $51,000 with Wood Environment and Infrastructure Solution, Inc.
associated with the design of Phase II Storm Water Quality Improvements at the
Bulk Terminal
11b. Staff recommended approval of a Purchase Order in the amount of$60,000
payable to Texas Department of State Health Services for asbestos regulated unit
costs incurred prior to the abatement of the remaining parcels acquired or to be
acquired under the Hillcrest/Washington-Coles Voluntary Acquisition and
Relocation Program. After discussion, on motion made by Mr. Squires and
seconded by Mr. Bowers, the Commission approved Staff's recommendation.
11c. By approval of the Consent Agenda Motion, the Commission approved a
Lease Amendment with Flatiron/Dragados LLC for use of an additional 1.36 acres,
for laydown workspace located on the south side of the Inner Harbor, west of the
Ortiz Center, Nueces County, Texas.
11d. Staff recommended approval, in the form presented the meeting, of Service
Order No. 9 in the amount of $73,388 with HDR Engineering, Inc., under Master
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Services Agreement No. 18-04, for construction phase support services
associated with the Oil Dock 14 Upgrades to Suezmax Capacity Project. After
discussion, on motion made by Mr. Squires and seconded by Mr. Bowers, the
Commission approved Staff's recommendation.
11e. By approval of the Consent Agenda Motion, the Commission approved a
Net Deductive Change Order in the amount of$75,236.86 with Orion Construction
LP for design and construction of the New North Bank Cargo Dock (Cargo Dock
16) Project for adjustments in site fencing, mooring dolphin bollards, and
compensation for temporary site utilities.
11f. By approval of the Consent Agenda Motion, the Commission approved an
Easement and Right of Way Agreement with AEP Texas, Inc. for an underground
electric distribution line and pad-mount transformer to provide electric service to
the Port of Corpus Christi Authority's new administrative office building, Nueces
County, Texas.
11 g. By approval of the Consent Agenda Motion, the Commission approved an
Easement and Right of Way Agreement with AEP Texas, Inc. for an underground
electric distribution line and a pad-mount transformer at the Bulk Terminal, located
north of Bulk Dock 1, Nueces County, Texas.
11h. By approval of the Consent Agenda Motion, the Commission approved the
purchase of a video wall from DataVox through The Interlocal Purchasing System
(TIPS) contract 170306 in the total amount of$150,947.27. This is a Port Security
Grant Program 16-05B funded project with a 25% PCCA match of$37,736.81.
11 L Staff recommended approval, in the form presented to the meeting, of a
Pipeline Easement with Gray Oak Pipeline, LLC., for a 35' x 55' surface site and
one 20-inch crude oil pipeline crossing Port of Corpus Christi Authority lands on
the north side of Joe Fulton International Trade Corridor and in Nueces Bay,
Nueces County, Texas. After discussion, on motion made by Mr. Squires and
seconded by Mr. Bowers, the Commission approved Staff's recommendation.
11j. By approval of the Consent Agenda Motion, the Commission approved a
Temporary Easement and Right of Way Agreement with AEP Texas, Inc. for the
temporary placement of pad-mount transformer, located east of Congressman
Solomon P. Ortiz International Center, Nueces 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.
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13. Recess Open Session and Convene Executive Session: At 10:27 a.m. Mr.
Zahn announced the Commission would go into executive session pursuant to,
§551.071 of the Texas Government Code, to deliberate agenda items 13a and 13b,
which were described in the agenda as follows:
13a. Legal advice from PCCA's counsel in connection with Cause No. 2018CCV-
60780-4; PCCA, Plaintiff vs. The Port of Corpus Christi, LP, Defendant, and The
Port of Corpus Christi, LP, Counter Claimant vs. PCCA, and in their Official
Capacities as Commissioners of the Port Authority, the following Commissioners:
Charles W. Zahn, Jr., Wayne Squires, Richard Ralph Valls, Jr., Richard Bowers,
David P. Engel, Wes Hoskins, Catherine Tobin Hilliard, And As-Yet Unnamed Co-
Conspirators, Counterclaim Defendants, in Nueces County Court at Law No. 4.
(§551.071)
13b. Legal advice from PCCA's counsel regarding a Novation Agreement in
which PCCA assumes CCI Corpus Christi LLC's obligations under a Settlement
Agreement with Citizens for Environmental Justice, et al, for the purchase of
certain real property in Donna Park, and the related Escrow Agreement.
(§551.071)
14. At 11:29 a.m., the Chairman reconvened in Open Session. No action was
taken in Open Session on the matters deliberated in Executive Session,
except as follows:
14a. Novation Agreement in which PCCA assumes CCI Corpus Christi
LLC's obligation under a Settlement Agreement with Citizens for
Environmental Justice, et al, for the purchase of certain real property in
Donna Park and a related Escrow Agreement: Staff stated that when CCI
Corpus Christi LLC terminated its lease with PCCA for Oil Dock 22, CCI assigned
its TCEQ Permits for the dock to PCCA. Staff explained that in order for the
assignment to be effective PCCA must assume CCI's obligations under CCI's
Settlement Agreement with Citizens for Environmental Justice, Environmental
Integrity Project, Polo and Connie Gonzalez, and Tammy Foster. Under the
Settlement Agreement, CCI had agreed to buy $625,000 worth of homes in the
Donna Park neighborhood when it began construction of the dock. To effectuate
this assumption, staff recommended approval, in the form presented to the
meeting, of a Novation Agreement under which PCCA would be substituted for
CCI as a party to the Settlement Agreement upon the deposit of$625,000 with the
Escrow Agent named in the Escrow Agreement attached to the Novation
Agreement.
Action: On motion made by Mr. Engel and seconded by Mr. Squires the
Commission approved the Novation Agreement and the Escrow Agreement, in the
form presented to the meeting, authorized a $625,000 deposit with the Escrow
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Agent, and authorized the Chief Executive Officer to execute these agreements on
behalf of PCCA.
15. Adjourn: On motion duly made and seconded, the meeting adjourned at 11:30
a.m.
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