HomeMy WebLinkAboutMinutes City Council - 10/10/2023I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of
the Regular Meeting of the Corpus Christi City Council of October 10, 2023 which
were approved by the City Council on October 17, 2023.
WITNESSETH MY HAND AND SEAL, on this the 17th day of October 2023.
(S E A L)
e-LeCC(A-Ae.4
Rebecca Huerta
City Secretary
Corpus Christi, Texas
City of Corpus Christi
Rebecca Huerta, City Secretary
P.O. Box 9277
Corpus Christi, Texas 78469-9277
(361) 826-3105
rebeccah@cctexas.com
SCANNED
City of Corpus Christi
Meeting Minutes
City Council
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
Tuesday, October 10, 2023
11:30 At ibrpus Christi Regional Transportation Authority, 602 N.
Staples St., 2nd Floor Board Room (Rm. 210)
Addendums may be added on Friday.
A. Mayor Paulette Guajardo to call the meeting to order.
Mayor Guajardo called the meeting to order at 11:32 a.m.
B. Invocation to be given by Pastor Greg Hood, REACH Ministries.
Pastor Greg Hood, REACH Ministries, gave the invocation.
C. Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be
led by Katie Baker, Junior at Veterans Memorial High School.
Katie Baker, Junior at Veterans Memorial High School, led the Pledge of Allegiance to
the Flag of the United States of America and to the Texas Flag.
D. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.
City Secretary Rebecca Huerta called the roll and verified that a quorum of the City
Council and the required Charter Officers were present to conduct the meeting.
Charter Officers: City Manager Peter Zanoni, City Attorney Miles Risley and City
Secretary Rebecca Huerta
Present: 9 - Mayor Paulette Guajardo,Council Member Roland Barrera,Council Member Gil
Hernandez,Council Member Michael Hunter,Council Member Mike Pusley,Council
Member Dan Suckley,Council Member Everett Roy,Council Member Jim Klein, and
Council Member Sylvia Campos
E. SECURITY BRIEFING
Assistant City Secretary Stephanie Box provided a security briefing.
F. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS:
1. 23-1624 Staff Announcements:
Billy Beyleu - Corpus Christi Assistant Fire Chief
Nick Winkleman - Assistant Director of Planning and Infrastructure
City Manager Peter Zanoni announced Nick Winkleman as Assistant Director of Planning
and Infrastructure. Mr. Winkleman is responsible for overseeing capital projects for water
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Meeting Minutes October 10, 2023
and wastewater infrastructure.
2. 23-1515 FY 2023 3rd Quarter Budget Report
City Manager Peter Zanoni presented information on the FY 2023 3rd Quarter Budget
Report as follows: presentation overview; general fund revenues; general fund expenses;
FY 2023 budget initiatives (all funds); HOT tax revenue; water fund revenues and
expenses; wastewater fund revenues and expenses; capital improvement program; 3rd
quarter summary; and next steps.
Council Members and City Manager Zanoni discussed the following topics: a request for
a complete list of the fund balances for each department; how to best address short-term
rental violations; and staff will provide Council a trend analysis for expenses.
3. 23-1631 2023 City Council Meeting Calendar Update
City Manager Peter Zanoni provided an update on the 2023 City Council meeting
calendar as follows: October 24 City Council meeting canceled; November 7 City
Council meeting canceled and rescheduled to November 28; tentative special meeting to
canvass the election results on November 17 or November 20; and December 19
Council meeting canceled and rescheduled to December 5.
4. 23-1653 2023 Solar Eclipse - Saturday, October 14, 2023
City Manager Peter Zanoni presented information on the 2023 Solar Eclipse as follows:
solar eclipse viewing safety; eclipse over the coast -Saturday, October 14, 2023 at 11:55
a.m.; safety tips; and 2023 Solar Eclipse Preview Event on Friday, October 13, from 5:30
p.m. to 8:00 p.m. at Cole Park.
G. PUBLIC COMMENT
Mayor Guajardo opened public comment.
Isabel Araiza, 326 Poenisch Dr., Autumn Hensiek, 325 Louisiana Ave., Alexis Vuong,
2333 Vaughn Dr., Blanca Parkinson, 10801 Silverton Dr., Jake Hernandez, 488 Palmetto
St., and Lamont Taylor, 522 Hancock, spoke in opposition to Item 25.
Susie Saldana, 4710 Hakel Dr., would like clarification about Proposition A.
Jonathan Martinez, 101 N. Shoreline Blvd, and Barton Bailey, 2882 Holly Rd., spoke in
support of an ordinance to prohibit smoking in all city parks recommended by the Parks
and Recreation Advisory Committee.
Rachel Caballero, 522 Hancock, spoke in opposition to Items 20, 25, and Proposition A.
John Weber, 609 Naples St., spoke about communication between a Council Member
and a Port of Corpus Christi Commissioner.
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Eli McKay, 1008 Marguerite St., spoke in opposition to Items 20 and 25.
Jatin Patel, Michael Miller, 51 Camden Place, Joshua Tijerina, 5506 Wooldridge Rd.,
Katherine Dain, 3746 Castle River Dr., Taylor Johnson, 4609 Schwerin Lake Dr., and
Daryl Genzer, 929 Navigation, spoke in opposition to Proposition A.
The following citizens submitted a written public comment which is attached to the
minutes: Patricia Jones, 4334 St. George Dr.; John Weber, 609 Naples St.; and Kathryn
Masten, Vienna, Maryland.
H. BOARD & COMMITTEE APPOINTMENTS: (NONE)
I. EXPLANATION OF COUNCIL ACTION:
J. CONSENT AGENDA: (ITEMS 5 - 16)
Approval of the Consent Agenda
Mayor Guajardo referred to the Consent Agenda. Items 13 and 15 were pulled for
individual consideration.
Council Member Suckley moved to approve the consent agenda with the exception of
Items 13 and 15, seconded by Council Member Campos. The motion carried by the
following vote:
Aye:
9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
5. 23-1625 Approval of the September 19, 2023 Regular Meeting Minutes.
The Minutes were approved on the consent agenda.
Consent - Second Reading Ordinances
6. 23-1465 Zoning Case No. 0723-04, Eldon Sunrise (District 2). Ordinance rezoning a
property at or near 4922 Everhart Road from the "RS -6" Single -Family 6 District
to the "CN -1" Neighborhood Commercial District; Providing for a penalty not to
exceed $2,000 and publication. (Planning Commission and Staff recommend
approval.)
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 033182
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7. 23-1405 Ordinance authorizing a Wastewater Trunk Line Construction and
Reimbursement Agreement up to $1,274,863.04 with Yasin Investments, LLC to
construct a required wastewater trunk line for the proposed development located
off South Padre Island Drive on the Island and South of Viento Del Mar Dr; and
authorizing future transfer and appropriation of Water and Wastewater Trust
Fund revenue up to $1,274,863.04 to reimburse the developer in accordance
with the agreement. (District 4).
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 033183
8. 23-1430 Ordinance designating the new Park Road 22 Bridge as the Don Patricio
Bridge.
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 033184
9. 23-1505 Ordinance amending Section 14-556 of Corpus Christi Code to adopt
regulations for nonstructural fill on North Beach; and providing for a penalty not to
exceed $500 per violation and publication.
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 033185
Consent - Contracts and Procurement
10. 23-0770 Motion authorizing execution of a one-year supply agreement with Ferguson
Enterprises, LLC, of Corpus Christi, in an amount not to exceed $73,644.52, to
purchase retainers, restraints, gaskets, and related supplies utilized by the
Corpus Christi Water Department, with FY 2024 funding in the amount of
$73,644.52 from the Water Fund.
This Motion was passed on the consent agenda.
Enactment No: M2023-155
11. 23-1230 Motion authorizing execution of a one-year service agreement, with two one-year
options, with Corpus Christi C -D Electric Texas, for motor and clutch repairs and
related supplies for the Corpus Christi Water Department's wastewater
treatment plants and lift and pump stations in an amount not to exceed of
$151,250---.00, and a potential amount of $453,750.00 if both one-year option
periods are exercised, with FY 2024 funding in the amount of $151,250.00 from
the Wastewater Fund.
This Motion was passed on the consent agenda.
Enactment No: M2023-156
12. 23-1524 Motion authorizing execution of a one-year service agreement, with two one-year
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options, with C & S Plating & Bumper Recycling, Inc., dba C & S Truck and Van
Equipment, of Austin, with an office in Corpus Christi, in an amount not to
exceed $333,000.00 and up to $999,000.00 if the options are exercised, for
upfitting services and repairs for Asset Management, with FY 2024 funding from
the Fleet Maintenance Service Fund.
This Motion was passed on the consent agenda.
Enactment No: M2023-157
13. 23-1644 Resolution authorizing the use of the public health and safety statutory exemption
to purchase up to 15 trucks from various unidentified regional dealerships in an
amount not to exceed $686,488.44 with funding from the Fleet Equipment
Replacement Fund.
Mayor Guajardo referred to Item 13.
Council Members, City Manager Peter Zanoni, and Director of Engineering Services Jeff
Edmonds discussed the following topics: staff is in the process of filling the 15 vacant
inspectors and this will allow staff to procure the vehicles; trucks are needed for
construction zone areas; and whether a financial analysis was done to outsource these
vehicles versus in house.
Council Member Hunter moved to approve the resolution, seconded by Council Member
Campos. This Resolution was passed and approved with the following vote:
Aye:
8 - Mayor Guajardo, Council Member Barrera, Council Member Hunter, Council Member
Pusley, Council Member Suckley, Council Member Roy, Council Member Klein and
Council Member Campos
Nay: 1 - Council Member Hernandez
Abstained: 0
Enactment No: 033186
General Consent Items
14. 23-1578 Resolution authorizing the submission of a grant application for the Firehouse
Subs Public Safety Foundation Grant for funding in the amount of $22,745.74 for
five replacement and one additional emergency medical services patrol bikes
and one replacement rescue boat to support the Corpus Christi Fire
Department.
This Resolution was passed on the consent agenda.
Enactment No: 033187
Consent - First Reading Ordinances
15. 23-1355 Ordinance authorizing a three-year lease agreement with five one-year options
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to renew, with Texas A&M University -Corpus Christi Lone Star UAS Center of
Excellence and Innovation (LSUASC) for 3,000 square feet of shop space,
19,000 square feet of unimproved land, and 1,400 square feet of the vehicle
parking at the Corpus Christi International Airport.
Mayor Guajardo referred to Item 15.
A Council Member, Director of Aviation Kevin Smith, and Michael Sanders with Texas
A&M Corpus Christi Drone Program discussed the following topic: authorizing this lease
agreement will allow TAMU-CC to do research, development, and test flights under
Federal Aviation Administration authority.
Council Member Pusley moved to approve the ordinance, seconded by Council Member
Hunter. This Ordinance was passed on first reading and approved with the following
vote:
Aye:
9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
16. 23-1553 Ordinance appropriating $48,348 and cash match of $9,670 for an increase of
$58,018 in the Tuberculosis Prevention and Control Grant from the Department
of State Health Services (DSHS) to provide tuberculosis prevention and control
services for the period January 1, 2022, through August 31, 2024, and
authorizing one grant position. This second amendment to the Tuberculosis
Prevention and Control Federal Grant amendment will increase funding to a total
not -to -exceed $154,710.
This Ordinance was passed on first reading on the consent agenda.
K. RECESS FOR LUNCH
Mayor Guajardo recessed the Council meeting for lunch at 1:23 p.m. Mayor Guajardo
reconvened the meeting at 2:05 p.m.
L. PUBLIC HEARINGS: (ITEMS 17 - 18)
17. 23-1566 Zoning Case No. 0723-05, Circle K Store (District 1). Ordinance rezoning
property at or near 11102 Up River Road from the "RS -6" Single -Family 6
District to the "CG -2" General Commercial District; providing for a penalty not to
exceed $2,000 and publication. (Planning Commission and Staff recommend
approval).
Mayor Guajardo referred to Item 17.
Mayor Guajardo opened the public hearing.
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There were no comments from the Council or the public.
Mayor Guajardo closed the public hearing.
Council Member Roy moved to approve the ordinance, seconded by Council Member
Pusley. This Ordinance was passed on first reading and approved with the following
vote:
Aye:
9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
18. 23-1567 Zoning Case No. 0823-01, Sharky Transportation (District 1). Ordinance
rezoning a property at or near 4757 Sharpsburg Road from the "IL" Light
Industrial District to the "IL/SP" Light Industrial District with a Special Permit;
Providing for a penalty not to exceed $2,000 and publication. (Planning
Commission and Staff recommend approval).
Mayor Guajardo referred to Item 18.
Mayor Guajardo opened the public hearing.
There were no comments from the public.
Mayor Guajardo closed the public hearing.
Council Member Roy stated this project will improve cell phone service in District 1.
Council Member Roy moved to approve the ordinance, seconded by Council Member
Pusley. This Ordinance was passed on first reading and approved with the following
vote:
Aye:
9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
M. INDIVIDUAL CONSIDERATION ITEMS: (ITEMS 19 - 25)
19. 23-1650 Resolution in support of the continued protection of the City's downtown Seawall
Flood Control Structure and the establishment of an endowment dedicated to the
future maintenance and repair of the Seawall.
Mayor Guajardo referred to Item 19.
Assistant City Manager Heather Hurlbert presented information on the following topics:
investment in the seawall structure; recent seawall protection; future seawall protection;
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seawall resolution; seawall endowment; and staffs recommendation.
Council Members, City Manager Peter Zanoni, Assistant City Manager Hurlbert, and
Director of Engineering Services Jeff Edmonds discussed the following topics: there
were no signs of deterioration during the last seawall inspection; approximately $14
million is going to be put into an endowment from Type A once the sales tax expires in
2026; a minimum of five percent of 1/4 of 1% of the Type A sales tax has to be spent on
the convention center complex, which includes the arena, Selena Auditorium, convention
center, and seawall; and this endowment ensures that $14 million is set aside for seawall
needs.
Council Member Suckley moved to approve the resolution, seconded by Council Member
Barrera.
Council Member Barrera moved to amend Section 1 of the resolution to state, "The City
Council supports the continued protection of the City's downtown Seawall Flood Control
Structure and the establishment of an endowment estimated to be $14,000,000 as of the
expiration of the sales tax authorization in 2026 dedicated to the future maintenance and
repair of the Seawall," seconded by Council Member Suckley and passed unanimously.
This Resolution was passed as amended and approved with the following vote:
Aye: 6 - Mayor Guajardo, Council Member Barrera, Council Member Hunter, Council Member
Suckley, Council Member Roy and Council Member Klein
Nay: 2 - Council Member Hernandez and Council Member Pusley
Absent: 1 - Council Member Campos
Abstained: 0
Enactment No: 033188
20. 23-1422 Motion to amend section 3.08 Required Development of the Industrial
Development Agreement 110-B with Bootstrap LLC to allow for development of
a Battery Energy Storage facility and extension of the placed in -use requirement
from December 31, 2023 to December 31, 2025.
Mayor Guajardo referred to Item 20.
Council Members, Assistant City Manager Heather Hurlbert, and Property Owner of
Bootstrap Energy LLC Matthew Held discussed the following topics: Phase 11 of the
battery pack is within the Industrial District Agreement; Bootstrap Energy contracts with
the Refinery Terminal Fire Company; the batteries are stored in a container with a built-in
fire suppression system; a Council Member's concern with the crypto currency mining;
and Parcel 110-B is for battery storage and not crypto mining.
Council Member Hunter moved to approve the motion, seconded by Council Member
Barrera. This Motion was passed and approved with the following vote:
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Aye: 6 - Council Member Barrera, Council Member Hernandez, Council Member Hunter, Council
Member Pusley, Council Member Suckley and Council Member Roy
Nay: 1 - Council Member Klein
Absent: 2 - Mayor Guajardo and Council Member Campos
Abstained: 0
Enactment No: M2023-158
21. 23-1311 Ordinance authorizing execution of a professional services agreement with
Coffman Associates, Inc., of Overland Park, Kansas, for an updated Airport
Master Plan in an amount not to exceed $1,610,689.00; appropriating Airport
Grant No. 72 from the Federal Aviation Administration for $1,449,620.00 in
Airport CIP Grants Fund No. 3020; appropriating $161,069.00 from the FY
2023-2024 Operating Budget, Airport Fund No. 4610, and transferring to Airport
Capital Reserve Fund No. 3018.
Mayor Guajardo referred to Item 21.
There were no comments from the Council.
Council Member Roy moved to approve the ordinance, seconded by Council Member
Barrera. This Ordinance was passed on first reading and approved with the following
vote:
Aye:
7 - Council Member Barrera, Council Member Hernandez, Council Member Hunter, Council
Member Pusley, Council Member Suckley, Council Member Roy and Council Member
Klein
Absent: 2 - Mayor Guajardo and Council Member Campos
Abstained: 0
22. 23-1601 Motion awarding a professional services contract to Garver, LLC, Houston,
Texas, to provide design, bid, and construction phase services for the Sand
Dollar 16 -Inch Connection Line from the Sand Dollar Water Pump Station to the
Coral Vine elevated storage tank in an amount not to exceed $683,960.00, with
FY 2024 funding available from Water Capital Fund.
Mayor Guajardo referred to Item 22.
Mayor Guajardo opened public comment.
There were no comments from the Council or the public.
Mayor Guajardo closed public comment.
Council Member Hunter moved to approve the motion, seconded by Council Member
Barrera. This Motion was passed and approved with the following vote:
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Aye:
8 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy and
Council Member Klein
Absent: 1 - Council Member Campos
Abstained: 0
Enactment No: M2023-159
23. 23-1619 Resolution authorizing the submission of a grant application of up to
$306,087.50 to the Office of the Governor for funding from the Texas Military
Preparedness Commission's Defense Economic Adjustment Assistance Grant
Program for the replacement of 15 Condensate Return Stations with new and
larger Condensate Return Stations at the Corpus Christi Army Depot Building 8;
this grant application requires a match contribution of up to $36,730.50 from the
City to fund project management and grant administration services.
Mayor Guajardo referred to Items 23 and 24.
Director of Intergovernmental Relations Ryan Skrobarczyk stated that the City values their
partnership with the military and the success with Defense Economic Adjustment
Assistant Grant Program (DEAAG).
Council Member Pusley moved to approve the resolution, seconded by Council Member
Hunter. This Resolution was passed and approved with the following vote:
Aye: 9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
Enactment No: 033189
24. 23-1642 Resolution authorizing the submission of a grant application of up to
$922,059.90 to the Office of the Governor for funding from the Texas Military
Preparedness Commission's Defense Economic Adjustment Assistance Grant
Program to remove and replace two aging and deteriorating pumps and motors
at two wastewater lift stations within the NASCC and to install two new
diesel -powered emergency generators at each lift station; the grant will require a
match contribution of up to 110,647.19 from the City to fund project management
and grant administration services.
See Item 23.
Aye:
9 - Mayor Guajardo, Council Member Barrera, Council Member Hernandez, Council Member
Hunter, Council Member Pusley, Council Member Suckley, Council Member Roy,
Council Member Klein and Council Member Campos
Abstained: 0
Enactment No: 033190
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25. 23-1675 Discussion with possible action regarding a Memorandom of Understanding
with Port of Corpus Christi Authority on Desalination as proposed by
Councilman Mike Pusley, Councilman Dan Suckley, and Councilman Gil
Hernandez.
Mayor Guajardo referred to Item 25.
Mayor Guajardo opened public comment.
There were no comments from the public.
Mayor Guajardo closed public comment.
Council Members, City Manager Peter Zanoni, and City Secretary Rebecca Huerta
discussed the following topics: the motivation behind the Memorandum of Understanding
(MOU) was to partner with the Port of Corpus Christi (the Port) to share the risk and
expense for desalination; and City staff meets with the Port on a weekly basis to maintain
good communication.
Council Member Hernandez moved to approve the Memorandum of Understanding,
seconded by Council Member Pusley. This Motion failed with the following vote:
Aye:
Nay:
4 - Council Member Hernandez, Council Member Hunter, Council Member Pusley and
Council Member Suckley
5 - Mayor Guajardo, Council Member Barrera, Council Member Roy, Council Member Klein
and Council Member Campos
Abstained: 0
N. BRIEFINGS: (NONE)
O. EXECUTIVE SESSION: (NONE)
P. ADJOURNMENT
There being no further business, Mayor Guajardo adjourned this meeting at 3:33 p.m.
City of Corpus Christi
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Sarah Brunkenhoefer
From: CitySecretary
Sent: Monday, October 9, 2023 8:02 AM
To: Sarah Brunkenhoefer
Subject: FW: [EXTERNAL]Pub!ic Input: 10-10-2023 - Patricia Jones
From: Jotform <noreply@jotform.com>
Sent: Sunday, October 8, 2023 9:37 PM
To: CitySecretary <CitySecretary@cctexas.com>; Norma Duran <NormaD2@cctexas.com>
Subject: [EXTERNAL]Public Input: 10-10-2023 - Patricia Jones
[ [ WARNING: External e-mail. Avoid clicking on links or attachments. We will NEVER ask for a
password, username, payment or to take action from an email. When in doubt, please forward to
SecurityAlert@cctexas.com. ] ]
Public Comment & Input Form
Date of Meeting
Name
Address
10-10-2023
Patricia Jones
Street Address: 4334 St. George Drive
City: Corpus Christi
State / Province: TX
Postal / Zip Code: 78413
Topic Bitcoin
Agenda Item Number 20
Describe Feedback: Dear Mayor, Council & Manager,
I have grave concerns about the city finalizing a deal
with the Bootstrap Energy/ Navitas Energy bitcoin
mining operations. Much more scrutiny needs to
be done. Bitcoin operations are highly risky
operations subject to crashing. The stability of the
companies needs much further investigation. Does
the city really know with whom they are entering a
deal? The projected number of employees looks to
be much less than originally projected. As a
taxpayer I am tired of all the tax relief being passed
out to industry while residents are saddled with
such high taxes!
If the bitcoin company is going to employ so few
people, will be relieved of paying taxes, is an
enormous consumer of energy and is extremely
Provide an email to
receive a copy of your
submission.
risky subject to crashing, what real benefit is Bitcoin
to the city and its residents? I don't see any real
benefit at all! I see potential danger! Please don't
cement a deal that the council and residents will
likely regret.
Sincerely,
Patricia Jones
pattyjones52@hotmail.com
2
Sarah Brunkenhoefer
From:
Sent:
To:
Subject:
CitySecretary
Monday, October 9, 2023 8:00 AM
Sarah Brunkenhoefer
FW: [EXTERNAL]Public Input: 10-10-2023 - John Weber
From: Jotform <noreply@jotform.com>
Sent: Sunday, October 8, 2023 10:18 AM
To: CitySecretary <CitySecretary@cctexas.com>; Norma Duran <NormaD2@cctexas.com>
Subject: [EXTERNAL]Public Input: 10-10-2023 - John Weber
[ [ WARNING: External e-mail. Avoid clicking on links or attachments. We will NEVER ask for a
password, username, payment or to take action from an email. When in doubt, please forward to
SecurityAlert@cctexas.com. ] ]
Public Comment & Input Form
Date of Meeting
Name
Address
Topic
Agenda Item Number
Describe Feedback:
U ploads:
Provide an email to
receive a copy of your
submission.
10-10-2023
John Weber
Street Address: 609 Naples St
City: Corpus Christi
State / Province: Texas
Postal / Zip Code: 78404
Agenda item 20. 23-1422
Agenda item 20. 23-1422
Please see attached Word document. Thank you.
Bootstrap-Navitas.docx
js_weber@hotmail.com
Dear Mayor and City Council,
I will try to be brief. I am open for comments, corrections, clarifications, and questions. This all started
about March 3, 2022 with a memo to Peter Zanoni from lain Vasey and Andrea Gardner. I will note that
both lain Vasy and Andrea Gardner both resigned not long after the Council approved the agreement.
My recommended reading includes that memo, both IDA 110 and IDA 110B, the presentation, all written
comments, as well as "Driverless Finance" by Allen and "Popping the Crypto Bubble" by Diehl, Akalin,
Tseng. I also recommend watching the Council meetings on YouTube and listening to the public
comments.
This was a very rushed process and it appears the Council was taken in and approved the IDA without
much due diligence. The company Bootstrap Energy, LLC has always appeared to me as not much of a
company. It appears to be just two people trying to get investor funding. It appears their only project is
this one. Checking out their website should raise many red flags. https://www.bootstrap-energy.com/
The City should request at least the last two years of audited financial statements as part of its due
diligence process. Maybe even a drive to Dallas and knock on their office door to confirm they exist.
On August 3, 2023 the City received a letter from Bootstrap Energy, LLC. It appears that Navitas Energy,
LLC has purchase over a 50% stake in the property in the IDA 110B. Navitas Energy, LLC appears to be a
little bit more of a company than Bootstrap Energy, LLC but not much.
https://www.navitasenergy.org/projects The same due diligence process should be carried out by the
City as for Bootstrap, LLC. August 29, 2023 Agenda Memorandum includes a motion allow battery
storage and push off the placed in use date by 2 years. It states the company will have an estimated
capital investment of $100 million. Most of the tax money the City would receive is from the 100% of
Business Personal Property in year 1. In the original plan. See below from original plan.
Infrastructure Investment
Description Phase -1 Phase -2 Total Value
Suostatlon (Hight to Medium Voltage) 10,000,000 10,000,000 20,000,000
Power Distribution (Medium to Low Voltage) 25,250,000 25,250,000 50,500,000
Land Improvements (civil construction) 7,500,000 7,500,000 15,000,000
Facilities (buildings, cooling) 22,500,000 22,500,000 45,000,000
Real Property 65,250,000 65,250,000 130,500,000
Description Phase -1 Phase -2 Total Value
ASIC computers
Business Personal Property
500,000,000 500,000,000 1,000,000,000
500,000,000 500,000,000 1,000,000,000
In the original plan the capital investment in each IDA is $562,250,000. Now they want to only invest
$100 million in one IDA. This will have a large fiscal impact.
On review of the new presentation, they speak of the Bitcoin price collapse. It is interesting because all
the public comment given was against the City signing this agreement. Some of the comments suggested
this very thing might happen. All informed investors know cryptocurrencies have no intrinsic value, have
no earning, and pay no dividends. They are referred to as a zero-sum game, a Ponzi scheme, a greater
fool's game, or just a scheme to take investor money. Everyone knows cryptocurrencies will crash,
nobody knows when. Public comments should have been a warning to the Council. The company claims
to be approached "by numerous energy storage developers." This could be true because the company
negotiated a sweetheart deal with the City. What the Council failed to see was the strategic value of the
location of the property and by disannexing the property they were giving up millions in franchise fees
and sales tax for electricity sales. The electrical demand for cryptocurrencies and battery storage is
enormous. From the City's original presentation.
Having the Development with two IDAs gives maximum tax relief that
equates to a property tax, sales tax and franchise fee reduction of
$70,501,509 over a 10 year period or $7,050,151 a year.
Navitas Energy, LLC is now the majority owner of the property. The City's agreement is with Bootstrap
Energy, LLC. The site renderings are much different than the original plan. Originally the mining
equipment was going to be in 150 containers on each IDA. Now it appears the mining equipment will be
in buildings with a detention pond. The original plan was to provide 35 jobs per IDA. Now is sounds like
there will be zero employees on IDA 110B.
Site During BESS Operating Ufe
• Noiseless, no personnel on site
• Remote security monitoring
• Automated operations
• No emissions or pollutants
• No hazardous liquids or chemicals
• RTFC Fire and emergency response
• Occasional repairs and testing
• Contracted electrical maintenance
In conclusion, it is recommended that the staff come back to the Council after proper due diligence is
complete. After that, if the companies pass financial requirements, updated financials with the lower
$100 million capital investment be figured and presented. The City renegotiate the IDA knowing how
valuable the property is and how much the City will be losing in electricity franchise fees and sales tax
revenue. A good fallback for the City is to honor the original agreement and when Bootstrap Energy, LLC
doesn't meet the terms, the City reannexes the property. There is no need to rush this like when it was
first approved. The City is holding all the cards and can negotiate a better deal knowing that it is highly
unlikely that the company can hold up its end of the agreement. I personally would use the massive
leverage the City holds to renegotiate both IDAs. I would require they do energy storage on both sites.
My reasoning is related to risk to the City. Energy storage is useful and if correctly planned, developed,
and installed should be profitable and assist the electrical grid in functioning for many years into the
future. Cryptocurrency mining on the other hand could go bankrupt again (see presentation and pasted
below). If the bankruptcy happens, the City receives no revenue and gets a property filled with electronic
waste. The Tess risky bet by far is energy storage.
CN files for Chapter -11 bankruptcy protection (Sep 22,
2022)
Regards,
John Weber
Default Terms
• Bootstrap Energy LLC agrees to include a petition for annexation for Phase 2 IDA
that becomes effective if a default occurs, which would allow for the voluntary
annexation of the 75.58 -acre tract of land to the City
Sarah Brunkenhoefer
From: CitySecretary
Sent: Tuesday, October 10, 2023 9:28 AM
To: Sarah Brunkenhoefer
Subject: FW: [EXTERNAL]Public Input: 10-10-2023 - Kathryn Masten
From: Jotform <noreply@jotform.com>
Sent: Tuesday, October 10, 2023 9:24 AM
To: CitySecretary <CitySecretary@cctexas.com>; Norma Duran <NormaD2@cctexas.com>
Subject: [EXTERNAL]Public Input: 10-10-2023 - Kathryn Masten
[ [ WARNING: External e-mail. Avoid clicking on links or attachments. We will NEVER ask for a
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Public Comment & Input; Form
Date of Meeting 10-10-2023
Name Kathryn Masten
Address Street Address: 306 Linden Ln #25
City: Vienna
State / Province: Maryland
Postal / Zip Code: 21869
Topic MOU with Port of Corpus Christi
Agenda Item Number 25
Describe Feedback: See attached. Since I could not attach it here
(because of the 5 file limit), just know that
Attachment E included the Crestline Consulting
Contract Amendment, where the Port hired one of
Texas' highest paid lobbyists, former Chief of Staff
to Governor Abbott, Reed Clay of Crestline, for
$164,000 to "advocate on behalf of the Port before
key executive agencies, including Texas Commission
on Environmental Quality, Texas Water
Development Board, and the Governor's Office of
Budget and Policy regarding the Nueces County
desalination project" and "provide local and
community affairs advocacy efforts through
coordinated support of existing consultants and
strategies". I got copies of the "detailed invoices"
which were supposed to show "Direct Costs,
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Uploads:
Provide an email to
receive a copy of your
submission.
milestone achievements, tasks performed or
completed", but all the invoices showed was the
amount paid.
AttachmentA WCP.pdf
AttachmentB 2021 Parsons Brine Mgmt
Study DRAFT.pdf
AttachmentC 2019 05 14 Presentation -
Desalination Council Update 14MAY2019.pdf
AttachmentD LVWU Letter.pdf
To the Mayor and City CCancil of Corpus
Christi.docx
kathrynmasten@yahoo.com
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