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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 07-16-19.min Pg. 1 of 10 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 07-16-19.min Pg.2of10 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. 07-16-19.min Pg.3of10 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 07-16-19.min Pg.4of10 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. 07-16-19.min Pg.5 of 10 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. 07-16-19.min Pg. 6 of 10 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 07-16-19.min Pg. 7 of 10 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. 07-16-19.min Pg.8of10 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 07-16-19.min Pg.9of10 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. 07-16-19.min Pg. 10 of 10