>> Mayor Guajardo: GOOD MORNING EVERYONE. I'D LIKE TO CALL THIS MEETING TO ORDER. WELCOME TO CITY HALL AND TO OUR COUNCIL CHAMBERS. THIS MORNING OUR INVOCATION WILL BE GIVEN BY REVEREND DR. CHIP BLACKSHEAR WITH FIRST PRESBYTERIAN OF CORPUS CHRISTI. >> GOOD MORNING, MADAME MAYOR, COUNCIL MEMBERS. THANK YOU SO MUCH FOR INVITING ME TO COME AND TO PRAY WITH YOU THIS MORNING. WILL YOU JOIN ME AS WE GO TO THE LORD IN PRAYER? O GREAT GOD, OUR HEAVENLY FATHER, WE PAUSE THIS MORNING FIRST OF ALL TO PRAISE YOU. TO PRAISE YOU AS THE CREATOR AND THE SUSTAINER OF ALL THAT IS TRUE, GOOD, AND BEAUTIFUL. TO PRAISE YOU FOR THE BLESSING OF LIVING HERE IN THIS PLACE, THIS SPARKLING CITY BY THE SEA. THAT WE GET TO APPRECIATE YOUR WORLD HERE THAT YOU HAVE MADE. LORD, WE ALSO PAUSE THIS MORNING TO ASK YOUR BLESSING UPON OUR MAYOR AND OUR COUNCIL MEMBERS, OUR CITY STAFF, THEIR FAMILIES. AS THEY COME TODAY TO WRESTLE WITH DIFFICULT ISSUES, LORD WE ASK THAT YOU WOULD GIVE THEM WISDOM AND GUIDANCE. WE ASK THAT YOU WOULD GIVE THEM THE COURAGE TO SEEK YOU FIRST AS THEY SEEK TO LEAD US. O LORD, MAY THEY DO ALL THINGS TO YOUR GLORY. FATHER, WE ASK THAT YOU WOULD GIVE THEM THE HUMILITY TO TREAT ONE ANOTHER WITH RESPECT AND LOVE AS PEOPLE WHO ARE CREATED IN YOUR IMAGE. WE ASK THAT YOU WOULD GIVE THEM THE COURAGE TO PUT YOUR INTERESTS AHEAD OF THEIR OWN. LORD, WE RECOGNIZE THE PROMISE THAT YOU MAKE IN YOUR WORD THAT IF WE WILL RETURN TO YOU AND SEEK FORGIVENESS THAT YOU WILL RETURN TO US. TODAY, LORD, WE BOLDLY ASK THAT YOU WOULD BLESS OR CITY. WE ASK THAT YOU WOULD BLESS US WITH A SPIRIT OF UNITY AND COOPERATION. AND WE ASK THAT YOU WOULD BLESS US WITH RAIN. WE PRAY ALL THIS IN THE HOLY NAME OF JESUS, AMEN. >> Mayor Guajardo: AMEN. THANK YOU, REVEREND. AND OUR PLEDGE OF ALLEGIANCE TO THE UNITED STATES FLAG AND TO THE TEXAS STATE FLAG WILL BE LED BY JOSHUA WILLIAM MARTINEZ. HE IS A SIXTH-GRADER FROM TULOSO MIDWAY ELEMENTARY SCHOOL, AN A-HONOR ROLL STUDENT, AND A UIL PARTICIPANT. >> PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE. [PLEDGE OF ALLEGIANCE] PLEASE JOIN ME IN HONORING THE TEXAS FLAG. >> Mayor Guajardo: JOSHUA, THANK YOU. YOU DID A GREAT JOB. MS. HUERTA, WOULD YOU PLEASE CALL THE ROLL? [ROLL CALL] >> City Secretary: MAYOR AND COUNCIL, A QUORUM OF THE COUNCIL AND THE REQUIRED CHARTER OFFICERS ARE PRESENT TO CONDUCT THE MEETING. >> Mayor Guajardo: THANK YOU, MS. HUERTA. AND WE WILL GO ON TO SECTION E, WHICH IS OUR CITY MANAGER'S COMMENTS AND UPDATE -- OR DEPUTY CITY MANAGER'S COMMENTS AND UPDATE ON CITY OPERATIONS. MR. RODRIGUEZ. >> THANK YOU, MAYOR. WE HAVE ONE UPDATE THIS MORNING AND IT WILL BE AN UPDATE ON ALTERNATIVE WATER SUPPLY PROJECTS PRESENTED BY DREW MOLLY. >> Molly: OKAY. GOOD MORNING, MAYOR, COUNCIL. DREW MOLLY, CHIEF OPERATING OFFICER, GLAD TO BE HERE TODAY TO GIVE YOU AN UPDATE. THIS IS GOING TO BE A BRIEF UPDATE ON OUR WATER SUPPLY STATUS. AND THEN SEVERAL PROJECTS THAT WE ARE WORKING ON. JUST AS A REMINDER, WE TRY TO DO THIS ONCE A WEEK AT COUNCIL WHEN COUNCIL IS SCHEDULED SO WE CAN PROVIDE THE INFORMATION THAT NOT JUST COUNCIL IS INTERESTED IN BUT CLEARLY THE COMMUNITY WANTS TO KNOW ABOUT. SO I WILL GIVE AN UPDATE IN TERMS OF JUST THE RESERVOIR LEVELS. OUR RESERVOIR WATER LEVELS, ESSENTIALLY WE GOT SOME REALLY BENEFICIAL RAIN BETWEEN JUNE 10 AND JUNE 15. AND AS A RESULT OF THAT BENEFICIAL RAIN, WE SAW SOME INCREASES IN OUR WESTERN RESERVOIR SUPPLY LEVELS. SO WE SAW THE RESERVOIR, THE COMBINED RESERVOIR LEVEL, WHICH IS CHOKE CANYON AND LAKE CORPUS CHRISTI, INCREASE IN LEVEL OF 14.7 TO 15.9%. I WILL SAY THAT LAKE CORPUS CHRISTI WAS PROBABLY THE BIGGEST -- IT WAS THE BIGGEST BENEFACTOR OF THAT. CHOKE CANYON DIDN'T REGISTER MUCH OF A CHANGE, IT WAS LAKE CORPUS CHRISTI. THERE WAS A LOT OF RAIN THAT FELL DOWNSTREAM IN THE WATERSHED IN THE THREE RIVERS AREA. WE TALKED ABOUT THAT IT WAS A ROAD BLOCK AND WE HAD TO CLOSE A COUPLE OF THE GATES ON CHOKE CANYON, JUST TO LET THAT WATER GET DOWN TO LAKE CORPUS CHRISTI. OF COURSE WE SAW THAT IMPROVEMENT IN LAKE CORPUS CHRISTI. THE REAL WINNER ON THE RAIN EVENTS THAT WE HAD OVER THE LAST TWO WEEKS WAS REALLY THE EASTERN SUPPLY. WE SAW LAKE TEXANA BASICALLY FILL UP. IT WENT FROM 81.4% TO FULL AT 99.4%. THAT WAS TREMENDOUS. MONDAY WE GOT A CALL FROM THE GENERAL MANAGER OF LAVACA NAVIDAD RIVER AUTHORITY, WHO WE TALK TO A LOT. WE WORK WITH THEM VERY WELL. THEY BASICALLY TOLD US THAT THE 4500-ACRE FEET OF UNINTERRUPTIBLE WATER WAS GOING TO BE MADE AVAILABLE TO US. THAT'S GREAT NEWS FOR US. GOING BACK ON SOME HISTORY, ALMOST EVERY YEAR GOING BACK FOR MANY, MANY YEARS WE TYPICALLY GET INTERRUPTIBLE WATER IN THE FIRST COUPLE MONTHS OF THE CALENDAR YEAR. WE JUST HAVEN'T BEEN MADE THAT OFFER BECAUSE THEY DIDN'T HAVE THE WATER TO OFFER TO US. THAT REALLY PUTS A MUCH BETTER PICTURE IN OUR ROAD MAP GOING FORWARD FOR THE REST OF THE YEAR BECAUSE WE'LL BE ABLE TO LEVERAGE AS MUCH WATER AS WE POSSIBLY CAN FROM THAT EASTERN SUPPLY, WHICH TENDS TO DO A LITTLE BIT BETTER THAN RIGHT NOW WHERE WE'RE AT ON THE WESTERN SUPPLY. SO BASICALLY TO KIND OF BRING THIS ALL TO A HEAD, ALL THIS KIND OF WRAPS UP INTO WHAT WE CALL OUR WATER SUPPLY DASHBOARD. THIS WATER SUPPLY DASHBOARD IS SOMETHING THAT WE PRESENTED TO YOU, COUNCIL, SEVERAL MONTHS AGO. IT'S REALLY SORT OF A NEW WAY OF LOOKING AT ALL OF OUR WATER SUPPLY. IT'S NOT JUST THE WESTERN SUPPLIES BUT THE EASTERN SUPPLIES AND SOME OF THE SHORT-TERM WATER. THIS GETS UPDATED EVERY TWO WEEKS. WE RUN THIS MODEL. WE HAVE SOME OUTSIDE HELP TO HELP RUN THIS MODEL. THE MODEL WAS RUN LAST FRIDAY. IT WAS UPDATED ON OUR WEBSITE YESTERDAY. AND TO NO SURPRISE WE WERE ALL EXPECTING THIS TO HAPPEN, BUT THE SHORTFALL OF WATER THAT WE HOPE NEVER HAPPENS, WHICH WAS LAST PREDICTED TO OCCUR, AS YOU SEE ON THE RED IN THE TABLE IN OCTOBER OF 2026, IT NOW GOT PUSHED BACK TO DECEMBER OF 2026. THAT'S THE KIND OF THING THAT MAKES A BIG DIFFERENCE. YOU GET A LITTLE BIT OF RAIN IN THE WATERSHED. WE'RE BLESSED ON OUR WATERSHED FROM THE STANDPOINT IT DOESN'T TAKE A LOT TO MAKE POSITIVE CHANGES. JUST A LITTLE BIT OF RAIN IS A BIG HELP. SO THAT IS WHERE WE STAND. THERE'S A COUPLE OF PICTURES YOU CAN SEE ON THE RIGHT THAT JUST INDICATE SOME OF THE LOCATIONS WHERE WE HAVE PICTURES OF WATER, GOOD, PLENTIFUL WATER COMING INTO OUR SYSTEM. AS FAR AS SOME OF THE THINGS THAT WE'VE BEEN WORKING ON, SO WE KNOW THAT WE'VE BEEN SORT OF GIVEN A HOMEWORK ASSIGNMENT. WE'VE BEEN WORKING DILIGENTLY ON THAT ASSIGNMENT TO WORK WITH SOUTH TEXAS WATER AUTHORITY. SOUTH TEXAS WATER AUTHORITY, AS WE UNDERSTAND, HAS ENTERED INTO A WATER SUPPLY AGREEMENT WITH SEVEN SEAS. WE UNDERSTAND THAT HAPPENED IN AUGUST OF 2024. ESSENTIALLY, THAT AGREEMENT IS TO DESIGN, PERMIT, CONSTRUCT, FINANCE, AND OPERATE A 4 MILLION-GALLON A DAY BRACKISH WATER DESAL TREATMENT FACILITY. WE UNDERSTAND THAT SOUTH TEXAS WATER AUTHORITY HAS EXPRESSED AN INTEREST TO EXPAND THAT FACILITY, UP TO 30 MILLION GALLONS PER DAY, OF WHICH 28 WOULD POTENTIALLY BE MADE AVAILABLE TO THE CITY OF CORPUS CHRISTI TO PURCHASE ON A TAKE OR PAY CONTRACT ARRANGEMENT. THE DOCUMENTS THAT WERE MADE AVAILABLE TO US THAT WE HAD BEEN REQUESTING THESE DOCUMENTS FOR A WHILE. ONE WAS THE WATER SUPPLY AGREEMENT. IT WAS RELEASED TO US ON FRIDAY NIGHT AS A CONFIDENTIAL DOCUMENT, SO WE DO HAVE THAT INFORMATION. YESTERDAY, JUNE 23, AFTER A FEW DAYS -- ACTUALLY I SAY A FEW DAYS -- AFTER TEN DAYS OF WORKING WITH SOUTH TEXAS WATER AUTHORITY, WE WERE ABLE TO AGREE ON A MEMORANDUM OF UNDERSTANDING THAT ALLOWS US TO WORK MORE IN DEPTH WITH THEM OVER THE NEXT 45 DAYS, WHICH IS WHAT WE'RE GOING TO PLAN ON DOING. SO THAT IS WHERE WE STAND WITH SOUTH TEXAS WATER AUTHORITY. AS FAR AS SOME OF THE OTHER PROJECTS THAT I THINK ARE WORTH NOTING, THERE'S A LOT OF INTEREST IN EFFLUENT REUSE. THAT IS SORT OF AN ALTERNATIVE WATER SUPPLY THAT OTHER CITIES IN TEXAS ARE LOOKING AT DEVELOPING. YOU KNOW, IF YOU WANT TO GO TO A GOOD EXAMPLE OF A CITY THAT'S DEVELOPED EFFLUENT REUSE -- IN FACT, I SAY EFFLUENT REUSE, DIRECT POTABLE REUSE, THAT IS ONE THAT EL PASO IS A GREAT EXAMPLE CITY TO LOOK TO. THERE'S OTHER SMALLER CITIES THAT ARE LOOKING AT THIS AS AN OPPORTUNITY FOR A SUSTAINABLE WATER SUPPLY. SO COUNCIL APPROVED AN AWARD TO A COMPANY CALLED GARVER FOR PROFESSIONAL SERVICES. THE CONTRACT WAS EXECUTED JUNE 20 AND THE FIRST STEP OUT OF THE GATE HERE IS TO LOOK AT WHAT KIND OF OPTIONS WE MIGHT BE ABLE TO DEVELOP AS FAR AS A REUSE APPROACH. AND THERE'S A NUMBER OF DIFFERENT APPROACHES AND ALTERNATIVES THAT WE'RE GOING TO LOOK AT. AND THEN WE'LL BRING THAT BACK TO COUNCIL AND HAVE YOU TAKE A LOOK AND HELP US. WE'LL ADVISE AND WE'LL RECOMMEND AND WE'LL BRING TO COUNCIL THOSE RECOMMENDATIONS. AND THEN WE WOULD BEGIN A 12-MONTH SOURCE WATER CHARACTERIZATION STUDY OF THAT EFFLUENT, OF COURSE WORKING IN CONCERT WITH TCEQ. A COUPLE OF UPDATES HERE ON THE NUECES RIVER GROUNDWATER WELL PROJECT. THAT CONTINUES TO GO WELL. WE HAVE TWO CONTRACTORS WORKING AROUND THE CLOCK ON DRILLING WELLS. OUR EXPECTATION IS THAT PHASE 1 OF THIS PROJECT, PHASE 1 OF THIS PROJECT WOULD PROVIDE 13 TO 15 MILLION GALLONS A DAY OF WATER INTO THE NUECES RIVER. WE HAVE TALKED ABOUT WHAT WILL WE DO WITH THESE UP TO EIGHT WELLS. PHASE 1, UP TO EIGHT WELLS OF GROUNDWATER. PHASE 2 WOULD BE BASICALLY TAKING THAT INFRASTRUCTURE INVESTMENT THAT WE MADE IN THE GROUNDWATER WELLS. AND THEN ESSENTIALLY USING THAT WATER IN A PHASE 2 WHERE WE WOULD TREAT IT AT A FUTURE BRACKISH RO PLANT. THIS HAS BEEN PROPOSED IN THE REGION PLAN. IT IS IN THE PLAN. WE PROPOSED THAT LAST WEEK. WE ALSO ARE PLEASED TO SAY THAT THE STATE HAS PROVIDED US WITH SOME GRANT FUNDING TO HELP SUPPORT THIS PROJECT IN THE TUNE OF $30 MILLION. WITH THAT SAID, WE KNOW THAT -- OR I CAN SAY THAT THE TCEQ, WE ARE WORKING WITH THEM. WE HAVE SUBMITTED A TEMPORARY BED AND BANKS APPLICATION PERMIT. AND THAT IS GOING WELL. THE PERMIT WAS DECLARED ADMINISTRATIVELY COMPLETE AND SO WE'RE CONTINUING TO MOVE FORWARD WITH THAT. SO, WITH THAT SAID, THAT KIND OF CONCLUDES MY PRESENTATION AND I'M CERTAINLY HAPPY TO ANSWER ANY QUESTIONS. >> Mayor Guajardo: THANK YOU. COUNCILMAN ROY. YEAH. >> Roy: THE ONLY QUESTION I HAD -- DREW, THANK YOU FOR THE PRESENTATION, THE UPDATE. I HAVE TWO QUESTIONS. ONE OF THEM IS: DID THE TCEQ IN THE INTERIM ALLOW US TO ACTUALLY OPERATE THOSE WELLS? >> Molly: YES. CORRECT. >> Roy: AWESOME. >> Molly: WHEN THEY BASICALLY PROVIDED AN ADMINISTRATIVELY-COMPLETE PERMIT, WE HAD A MONITORING PLAN THAT WE HAD TO PRESENT TO THEM THAT ENSURED THAT THERE WERE BASICALLY MEASURES THAT WE HAVE TO MEET. SO IF THERE'S ANYTHING THAT WOULD POTENTIALLY BE AN ADVERSE IMPACT TO THE RIVER, WE WOULD HAVE TO MAKE ADJUSTMENTS TO THE WELL WATER THAT WE WOULD BE PUTTING INTO THE RIVER. AND SO THOSE WERE ALL THINGS THAT THE TCEQ HAS VETTED AND ESSENTIALLY HAS SAID, YOU KNOW, THEY HAVE ESSENTIALLY APPROVED THAT. SO THE FORMALITY PART OF THIS IS THAT WE STILL HAVE TO GET AN OFFICIAL PERMIT BECAUSE THE CITY IS NOT PROTECTED ON THE WATER GOING IN IN TERMS OF SOMEBODY ELSE TAKING IT. SO IT'S REALLY NOT IN OUR POSSESSION UNTIL WE ACTUALLY HAVE THE PERMIT. THAT'S WHY IT'S IMPORTANT THAT WE STILL PROCEED TO GET THE PERMIT. AGAIN, IT'S A TEMPORARY PERMIT. IT'S A THREE-YEAR PERMIT. >> Roy: SO OUT OF THE EIGHT THAT ARE DRILLED, HOW MANY OF THOSE ARE UP AND OPERATIONAL AND PRODUCING WATER RIGHT NOW? >> Molly: RIGHT. SO WE HAVE THREE TODAY THAT ARE OPERATIONAL. YES SIR. >> Roy: THANK YOU. AND THEN THE OTHER THING IS I KNOW SOMETIMES WE DON'T REALLY TALK ABOUT THE MARY RHODES PIPELINE. BUT CAN YOU TELL ME -- I KNOW A COUPLE OF WEEKS AGO WE WERE HAVING SOME ISSUES WHERE WE HAD TO COME DOWN AND DROP THE LEVEL. WHERE ARE WE AT RIGHT NOW ON THE MARY RHODES? >> Molly: SO THE MARY RHODES PIPELINE, WE ACTUALLY HAD TO DROP TO 55 MILLION GALLONS PER DAY. WE HAVE BEEN UNDER THAT LOWER FLOW FOR THE LAST SEVERAL WEEKS. I UNDERSTAND THE REPAIRED PUMP HAS BEEN DELIVERED OVER THE WEEKEND. THEY HAVE BEEN WORKING SEVEN DAYS A WEEK. AND SO WE EXPECT THAT PUMP TO BE INSTALLED TOMORROW. AND SO OUR EXPECTATION IS THAT WITHIN THE NEXT 24/48 HOURS WE SHOULD BE ABLE TO BRING THAT SYSTEM BACK ONLINE WITH THE REPAIRED PUMP. AND BRING IT ONLINE TO THE 70 MILLION GALLONS PER DAY FLOW THAT WE'RE PLANNING ON . >> Roy: THANK YOU. THANK YOU VERY MUCH. THAT'S ALL I HAVE. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. HE ASKED SOME OF MY QUESTIONS BUT THANK YOU FOR THAT PRESENTATION. IT'S SO GREAT TO HEAR SOME GOOD NEWS ABOUT OUR RESERVOIRS. PRAISE GOD WE'VE GOT SOME WATER GOING IN THERE. BUT I WAS CURIOUS. AND YOU MAY HAVE SAID IT -- I WAS TRYING TO FOLLOW ALONG SO I MIGHT HAVE MISSED IT. WITH THE PROGRESS THAT WE'VE MADE ON THOSE NUECES WELLS, DO THEY HAVE AN ETA ON WHEN WE CAN BEGIN TO UTILIZE THOSE THREE WELLS THAT ARE OPERATIONAL? >> Molly: ONE OF THE THINGS -- WE COULD ACTUALLY USE THEM TODAY. THE THING THAT'S HAPPENING RIGHT NOW IS THERE WAS SOME AQUATIC MONITORING AND SOME SAMPLING THAT WAS BEING DONE BY OUR ENVIRONMENTAL TEAM. AND SO IT WAS IMPERATIVE THAT THE RIVER BE BASICALLY SAMPLED AND EVALUATED ON ITS NATURAL CONDITIONS, WITHOUT THAT INFLUX OF GROUNDWATER. SO WE HAD TO BASICALLY WAIT UNTIL THAT WORK WAS DONE. IN FACT, PART OF THE REASON WHY THAT SAMPLING HAD TO WAIT WAS BECAUSE OF ALL THE RAIN WE GOT. WE COULDN'T GET IN THE RIVER BECAUSE IT WAS A LOT OF RAINFALL THAT HAPPENED. SO WE HAD TO UNFORTUNATELY DELAY THAT. BUT THAT SAMPLING WORK IS -- I BELIEVE IT'S BEEN COMPLETE. AND SO, ESSENTIALLY, WE'RE PRETTY MUCH READY. WE'RE READY TO GO IN TERMS OF USING THOSE WELLS AS A SOURCE OF WATER INTO THE RIVER. >> Paxson: IS THAT SOMETHING, I WOULD ASSUME FROM THIS DIRECTION, IS GOING TO BE PUT INTO MOTION? AND AS WE PROGRESS ON THOSE OTHER FIVE, THOSE WILL BE ADDED BEHIND THEM? >> Molly: THAT IS CORRECT. >> Paxson: PERFECT. I WAS LOOKING OVER THIS AND I SEE WE HAD A QUICK LITTLE UPDATE ABOUT THE EFFLUENT REUSE PROJECT. SOMEBODY BROUGHT UP A PRETTY GOOD POINT, LAST WEEK OR SO, ABOUT LOOKING AT WHERE SOME OF THOSE LOCATIONS HAVE BENEFITED THE ECOSYSTEMS AROUND THEM BY PUTTING THAT WATER, THAT EFFLUENT WATER BACK INTO THEM. I WAS CURIOUS. I ASSUME THAT PART OF THEIR HYDROLOGY STUDY THEY WOULD BE LOOKING AT THE EFFECTS OF ALL OF THAT, WHICH AREAS WERE IDEAL TO LEAVE. WHICH AREAS ARE FINE TO TAKE. WOULD I BE CORRECT THERE? >> Molly: THAT QUESTION YOU JUST ASKED IS INCLUDED IN THEIR SCOPE OF SERVICES WITH THE COMPANY WE HAVE HIRED TO DO THE WORK. YES MA'AM. >> Paxson: PERFECT. THANK YOU SO MUCH AGAIN, DREW. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. THANK YOU, COUNCILWOMAN PAXSON FOR THOSE REALLY GOOD QUESTIONS. BECAUSE THAT WAS MY QUESTION ABOUT THE EFFLUENT. YOU KNOW, THANK GOODNESS THAT WE DO HAVE SOME WATER, SOME POSITIVE, YOU KNOW, INCREASE ON OUR WATER. BUT ON THE STUDY ITSELF, IS THERE -- I MEAN, I KNOW WE HAVE TO BE VERY, VERY THOROUGH. BUT WHAT IS THE POSSIBILITY OF THE STUDY BEING NARROWED DOWN TO NINE MONTHS? IS THAT EVEN A POSSIBILITY SO THAT WE CAN TRY TO SEE WHERE WE ARE ON THE EFFLUENT. IS THAT EVEN A POSSIBILITY? >> Molly: I WOULD SAY, YOU KNOW, EVERYTHING IS ON THE TABLE SO WE'RE DOING LOTS OF THINGS A LOT QUICKER THAN PROBABLY THEY HAVE BEEN DONE IN THE PAST. IT'S REALLY A QUESTION OF, YOU KNOW, WE'VE GOT A LOT ON THE TABLE AND SO IT'S JUST A MATTER OF TRYING TO FIGURE OUT HOW TO BALANCE THAT. AND I'M SURE THAT WE COULD PUT SOME ADDITIONAL PRESSURE ON THEM TO EXPEDITE THAT. I DON'T HAVE AN EXACT TIMETABLE AS TO WHAT THAT WOULD LOOK LIKE. >> Campos: SO IT WOULD BE YOU, YOUR DEPARTMENT TO PUT THAT ADDITIONAL PRESSURE ON THEM TO SAY, LISTEN, IS THERE A POSSIBILITY THAT WE CAN MAYBE LOOK AT DOING THE STUDY SOONER? NINE MONTHS IS WHAT I'M HOPING FOR. >> Molly: WE ABSOLUTELY CAN ASK THAT QUESTION AND SEE WHAT THEY SAY. >> Campos: ALL RIGHT. THANK YOU. >> Molly: YOU BET. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: THANK YOU, MAYOR. DREW, I WANT TO GO BACK TO A CONVERSATION WE HAD FRIDAY AFTERNOON WITH REGARDS TO THE WELLS THAT WE'RE DRILLING ON, THE NUECES RIVER. WE HAVEN'T GOTTEN A REPORT ON THE TOTAL DISSOLVED SOLIDS ON EACH OF THOSE WELLS. WERE YOU ABLE TO GET THAT INFORMATION? >> Molly: YES, SIR. I DO HAVE A REPORT. MY EXPECTATION IS THAT I WILL PROVIDE THAT AS AN UPDATE ON, YOU KNOW, FRIDAYS WE'RE TRYING TO SHOOT TO GET INFORMATION OUT TO THIS COUNCIL SO EVERYBODY IS UP TO DATE WITH INFORMATION WE'RE WORKING ON, AS FAR AS THESE PROJECTS ARE CONCERNED. MY INTENTION IS TO HAVE SOME OF THAT PRELIMINARY DATA THAT WE HAVE AVAILABLE TO YOU, TO COUNCIL, SO YOU CAN SEE THAT DATA. >> Hernandez: OKAY. THE CONCERN WAS THAT IT WAS HIGHER TOTAL DISSOLVED SOLIDS. BUT WE HAVEN'T SEEN ANY OF THE INDIVIDUAL REPORTS. AND THE REASON I SAY THAT IS BECAUSE WE'RE NOT THE ONLY ONES THAT DRAW WATER FROM THE NUECES RIVER. THERE'S FOUR OTHER -- I BELIEVE THREE -- FOUR OTHER ENTITIES THAT TAKE WATER. SAN PATRICIO MUNICIPAL WATER DISTRICT, FLINT HILLS, AND ROBSTOWN . SPECIFICALLY THE WATER DISTRICT NO. 3, SELLENESE AND FLINT HILLS ARE A SOURCE FOR THAT WATER, CORRECT? >> Molly: THAT IS CORRECT. I CAN TELL YOU THAT WE ABSOLUTELY -- IN ORDER TO GET AN ADMINISTRATIVELY-COMPLETE PERMIT FROM TCEQ, WE HAD TO PROVE TO THEM THAT WE WERE NOT GOING TO IMPAIR THAT WATER BODY. THERE ARE REALTIME MONITORING DEVICES THAT WE HAVE INSTALLED INTO THE RIVER BODY SO WE CAN SEE REALTIME HOW THE WATER QUALITY IS CHANGING. AS I MENTIONED TO COUNCILWOMAN PAXSON, THERE WAS SOME AQUATIC LIFE MONITORING WORK THAT HAD TO BE DONE IN ORDER TO GO THROUGH THIS PROCESS. WE HAVE HAD CONVERSATIONS WITH EVERY ONE OF THOSE DOWNSTREAM USERS. SO WE KNOW THAT ANY CHANGES IN WATER QUALITY IS SOMETHING THAT'S ABSOLUTELY IMPERATIVE THAT ALL OF OUR PARTNERS -- AND WHEN I SAY OUR PARTNERS, I'M TALKING ABOUT THE VERY FOLKS THAT YOU JUST MENTIONED. FLINT HILLS, SAN PAT, DISTRICT NO. 3. ROBSTOWN. WE HAVE MET WITH ROBSTOWN TO MAKE SURE THAT EVERYONE IS UNDERSTANDING WHAT IT IS THAT WE'RE DOING AND HOW WE'RE DOING IT. SO I THINK IT'S IMPERATIVE THAT WE HAVE THOSE CONVERSATIONS, WHICH WE'RE DOING. >> Hernandez: OKAY. MY CONCERN IS THERE'S SOME LIABILITY WITH THAT IF WE IMPAIR THEIR ABILITY TO UTILIZE THAT WATER. SPECIFICALLY, WATER DISTRICT NO. 3 IN ROBSTOWN, SINCE THEY HAVE SENIOR RIGHTS TO THE RUN OF THE RIVER THAN WE DO, I WANT TO MAKE SURE THAT WE DON'T PUT OURSELVES IN ANY LEGAL JEOPARDY WITH REGARDS TO IMPAIRING THEIR ABILITY TO PRODUCE WATER. NOW, I KNOW THERE'S SOME MITIGATION THINGS WE CAN DO ASSOCIATED WITH THAT BUT I WANT TO BE VERY CAUTIOUS IN TERMS OF HOW WE PUT THAT WELL WATER INTO THE RIVER SYSTEM SO WE DON'T IMPACT THEIR ABILITY TO PRODUCE WATER. >> Molly: ABSOLUTELY. >> Hernandez: THANK YOU. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: OKAY. THOSE ARE MY CONCERNS AS WELL. THE TDS IS TOTAL DISSOLVED SOLIDS. WHY DOES THAT MATTER? >> Molly: WHY DOES THAT MATTER? IT MATTERS BECAUSE TOTAL DISSOLVED SOLIDS IS A CONSTITUENT THAT IS VERY DIFFICULT TO REMOVE. IN FACT, THE ONLY WAY YOU CAN REALLY REMOVE TOTAL DISSOLVED SOLIDS IS THROUGH DESALTING IT. IT'S SALT. TOTAL DISSOLVED SOLIDS IS A SALT. SO TAKING THAT SALT OUT REQUIRES TREATMENT TECHNOLOGY LIKE LOW PRESSURE, HIGH PRESSURE, REVERSE OSMOSIS. THAT IS NOT SOMETHING THAT WE HAVE THE ABILITY TO DO. THAT'S WHY IT'S IMPORTANT THAT WE MAKE SURE THAT WE DON'T DO ANYTHING THAT WOULD POTENTIALLY IMPACT ANYBODY'S DOWNSTREAM USE OF THAT WATER. >> Vaughn: SO WHAT'S THE NORMAL TDS? >> Molly: THE NORMAL TDS DEPENDS ON WHETHER OR NOT WE'RE IN A DROUGHT. WHETHER WE'VE GOT LOTS OF RAINFALL. UNDER NORMAL CONDITIONS, IT'S ANYWHERE BETWEEN 500 TO 1,000. IT CAN BE AS HIGH AS 1,000. WE HAVE HAD CONVERSATIONS WITH THE DISTRICT, WC ID NO. 3 AND THEY HAVE SEEN IT AS HIGH AS 1,000, MAYBE EVEN A LITTLE BIT HIGHER THAN THAT. YOU KNOW, BEFORE ANTHROPROGENIC EFFECTS, BEFORE MAN CHANGED THE ECOSYSTEM, THAT SECTION OF THE NUECES RIVER IS CONSIDERED AN IMPAIRED WATER BODY. IT IS TIDALLY INFLUENCED BY THE SEA AND THERE WAS A SALTWATER BARRIER CONSTRUCTED TO TRY TO KEEP SOME OF THAT SALINITY FROM COMING UPSTREAM. BUT THAT WATER BODY HAS A FAIRLY VARYING AMOUNT OF TDS AT ANY GIVEN TIME. THAT WHY I THINK IT'S IMPORTANT FOR US TO MAKE SURE WE'RE ACTIVELY MONITORING IT. WE'RE ACTIVELY COMMUNICATING WITH THE OTHER ENTITIES THAT DEPEND ON THAT SOURCE. ONE OF THE THINGS TOO I WILL SAY IS WE'RE FORTUNATE BECAUSE NOT ALL OF OUR WATER COMES FROM THAT SOURCE. WE'RE FORTUNATE THAT WE GET VERY LOW TDS WATER FROM THE MARY RHODES PIPELINE DELIVERED FROM LAKE TEXANA AND THE COLORADO RIVER. WE'RE FORTUNATE THAT WE CAN BLEND THAT. BUT OTHER ENTITIES MAY NOT HAVE THAT LUXURY. >> Vaughn: WELL, AND THE REASON I ASK IS BECAUSE I WAS TOLD BY SOMEONE THAT IT WAS 5,000 TDS. AND I THOUGHT THAT WAS A RIDICULOUSLY-HIGH NUMBER. AND THAT'S A SCARY THOUGHT BECAUSE WE ALWAYS KNEW THAT WATER WAS GOING TO BE SALTIER THERE. YOU HAD TO GO UP FURTHER IN ORDER TO GET BETTER WATER. IS THAT TRUE? >> Molly: YEAH. SO WE'VE GOT THREE WELLS THAT HAVE BEEN DRILLED SO FAR -- OR THREE WELLS THAT WE HAVE TEST DATA FROM. AND ONE OF THE WELLS, THE FIRST WELL, HAD TDS UP AROUND THE 5,000 MILLIGRAM PER LITER LIMIT. SO THAT INFORMATION HAS BEEN INCLUDED IN THE MODELING. AND SO THE OTHER TWO WELLS, I BELIEVE THEY'RE AROUND 3,000 MILLIGRAMS PER LITER. AT THE END OF THE DAY, WE EXPECTED A HIGHER TDS CONCENTRATION IN THOSE WELLS. WE KNOW, BECAUSE WE HAVE A LOT OF DATA, WE HAVE A LOT OF HYDRAULIC DATA FROM ALL OVER. THERE'S THOUSANDS OF WELLS THAT WE PULL DATA FROM. WE HAVE EXPERTS THAT HELP US WITH THAT. SO WE KNEW THAT THERE WAS GOING TO BE A HIGHER TDS IN AND AROUND THAT AREA. AND SO THAT'S WHY IT'S IMPORTANT THAT WE WERE ABLE TO WORK THROUGH A PLAN, A MONITORING PLAN. WE WERE ABLE TO COMMUNICATE TO OUR PARTNERS, AS WE JUST MENTIONED. WE WERE ALSO ABLE TO ENGAGE WITH TCEQ TO PROVIDE THEM WITH THE INFORMATION THAT THEY REQUIRED IN ORDER FOR US TO HAVE AN ADMINISTRATIVELY-COMPLETE PERMIT. >> Vaughn: IT JUST SEEMS HIGH. >> Molly: IT IS. IT'S NOT WATER -- I THINK A COUPLE OF COUNCIL MEMBERS, WHO WE TOOK OUT TO THE FIELD, YOU KNOW, WE DRANK IT. I DON'T KNOW IF EVERYBODY SWALLOWED THAT WATER BUT WE DRANK IT. >> [OFF MIC] >> Molly: YOU DIDN'T SWALLOW IT OKAY. IT HAS A HIGHER TDS. WHEN YOU TASTE IT, IT TASTES SALTY. THAT'S WHY THAT WATER, AS I MENTIONED ON MY PRESENTATION, YOU KNOW, PHASE 2, BECAUSE WE'VE INVESTED IN THIS INFRASTRUCTURE, WE DON'T WANT THIS INFRASTRUCTURE JUST TO SIT AND NOT BE USED LONG TERM BECAUSE WE HAVE MADE A COMMITMENT, THE STATE HAS GRANT FUNDING TO HELP US. WE WANT TO TAKE THAT WATER AND ROUTE IT TO A BRACKISH RO PLANT AND PROVIDE THAT WATER TO OUR COMMUNITY THAT IS NOT 4,000, 3,000, OR 5,000. IT'S BELOW 500. >> Vaughn: DO YOU REMEMBER WHAT THE EVANGELINE IS? THAT SOUNDS PRETTY GOOD TO ME. >> Molly: I THINK AS I MENTIONED BEFORE , EVERY WATER IS DIFFERENT. ONE OF THE THINGS -- AND WE'LL PROVIDE THIS TO THE COUNCIL AND THE COMMUNITY. WE'VE DONE A FULL SUITE OF ANALYSIS ON METALS. UNLIKE THE EVANGELINE THAT HAS ARSENIC OVER THE MCL. THIS WATER HAS ARSENIC BELOW THE MCL. THOSE ARE TRADE-OFFS. NOBODY WANTS ARSENIC. THIS WATER HAS ARSENIC. THE ARSENIC IS WELL, WELL BELOW THE MCL SO THOSE ARE THINGS THAT ARE IMPORTANT. AS WE GET MORE DATA FROM THESE SITES, OBVIOUSLY WE'RE STILL DRILLING. WE'LL HAVE MORE DATA THAT WE'LL BE ABLE TO SHARE WITH YOU AND THE COUNCIL. >> Vaughn: AND ALL WATER HAS A LITTLE ARSENIC IN IT, CORRECT? DOESN'T IT NORMALLY? >> Molly: NOT NECESSARILY. THERE'S WATER THAT DOESN'T HAVE ARSENIC IN IT. THERE IS SOME WATER THAT HAS A LITTLE BIT OF ARSENIC IN IT. THERE'S A REASON WHY THERE'S AN MCL THAT IS SET BY THE TCEQ. THERE IS A SAFE AMOUNT AND IF YOU EXCEED THE MCL, THE MAXIMUM CONTAMINATE LEVEL, IF YOU EXCEED THAT, YOU ARE IN VIOLATION OF THE TCEQ, WHICH CAN BE A REAL ISSUE. >> Vaughn: LAST QUESTION. THERE WERE SOME WELLS OUT THERE, THE 80S WELLS. WHY DID WE NOT DO THOSE WELLS? >> Molly: SO THE WELLS THAT YOU'RE REFERRING TO WAS ACTUALLY THE INITIAL ASPECT OF WHAT WE WERE TRYING TO DO. BECAUSE WE ALWAYS TAKE THE LOWEST COST APPROACH TO TRY TO MAKE IMPROVEMENTS OR ADDING WATER SUPPLY. THE LOWEST-COST APPROACH WAS TO TRY TO UTILIZE THE OLD WELLS THAT HAD BEEN IN PLACE FOR DECADES. AND THERE WERE APPROXIMATELY EIGHT OF THOSE WELLS. THE CITY OF CORPUS CHRISTI, BACK AS EARLY AS T THE '50S, '60S, '70s, AND '80s HAD WELLS THEY DRILLED ON PRIVATE LAND AND UTILIZED THOSE TO AUGMENT THE RIVER WITH GROUNDWATER. WHEN WE HAD THE MARY RHODES PIPELINE AND LOTS OF RAIN FELL, THOSE WELLS GOT FORGOTTEN, UNTIL SIX MONTHS AGO WHEN WE WENT OUT AND TRIED TO USE THOSE WELLS AS A MEANS FOR AUGMENTING RIVER WATER. WE LOOKED AT ALL EIGHT WELLS. WE HAD ONE OF THE TOP CONTRACTORS IN THE STATE OF TEXAS LOOK AT THOSE WELLS. WE SPENT TENS OF THOUSANDS OF DOLLARS TRYING TO REHABILITATE THOSE WELLS AND UNFORTUNATELY THOSE WELLS WERE NOT ABLE TO BE REHABILITATED. WE TRIED EVERYTHING BECAUSE WE KNEW THAT WAS THE LOWEST-COST OPTION. AND SO THAT'S WHY WE'VE MIGRATED TO THIS PHASE, WHICH IS BASICALLY INSTALLING WELLS ON PROPERTY THAT THE CITY OWNS. HAVING A HYDROGEOLOGIST THAT LOOKS AT THIS INFORMATION SO THAT WE ARE DOING IT IN A WAY THAT IS RESPONSIBLE, AND THAT'S WHERE WE'RE AT. >> Vaughn: OKAY. I THINK OUR BIGGEST CONCERN IS JUST THAT THE WATER GOING IN THERE IS SAFE. I KNOW THAT'S YOUR CONCERN TOO. YOU'RE NOT GOING TO PUT IT IN THERE UNLESS IT IS. THAT'S ALL THE QUESTIONS I HAVE. >> Molly: YES, MA'AM. >> Mayor Guajardo: THANK YOU, DREW. I THINK THAT'S ALL THE QUESTIONS WE HAVE FROM COUNCIL. IT'S GOOD TIMING. IT IS NOON. SO WE'RE GOING TO MOVE ON TO OUR PUBLIC COMMENT. DID YOU HAVE ANYTHING ELSE? THANK YOU. THANK YOU. AS YOU ALL KNOW, WE HANDLE SIGNIFICANT MATTERS CONCERNING TAXPAYER DOLLARS, MAKING IT IMPERATIVE THAT WE UPHOLD THE HIGHEST STANDARDS OF DECORUM AND ADHERENCE TO OUR POLICIES. OUR CORE PRINCIPLES OF TRANSPARENCY AND INCLUSIVENESS GUIDE OUR ACTIONS AND WE AIM TO ACHIEVE THEM WHILE RESPECTING OUR CITY COUNCIL POLICY, WHICH HAS BEEN IN PLACE FOR 30 YEARS. PUBLIC COMMENT SERVES AS ONE AVENUE FOR COMMUNICATION BUT IT CERTAINLY IS NOT THE SOLE METHOD. YOU ARE ALSO ABLE TO REACH YOUR MEMBERS OF THIS COUNCIL BY WAY OF PHONE CALL, E-MAILS, OR EVEN IN-PERSON APPOINTMENTS. WITH THAT SAID, WE'RE GOING TO GO AHEAD AND PROCEED TO PUBLIC COMMENT, KEEPING IN MIND THE IMPORTANCE OF DECORUM AND ADHERENCE TO THE POLICY. SO BEFORE WE BEGIN, I'D LIKE TO ASK OUR CITY ATTORNEY, MILES RISLEY, TO PLEASE REVIEW THE COUNCIL MEETING RULES OF DECORUM. [RULES OF DECORUM] >> Mayor Guajardo: THANK YOU, MR. RISLEY. SO INDIVIDUALS WILL BE CALLED UPON IN THE ORDER THEY SIGNED UP ELECTRONICALLY. WE WILL FIRST HEAR IN-PERSON COMMENTS FOLLOWED BY VIRTUAL PUBLIC COMMENTS. RESIDENTS OF CORPUS CHRISTI WILL BE GIVEN PRIORITY OVER NON-RESIDENTS. AND IF YOU'LL PLEASE STATE YOUR NAME AND THE CITY IN WHICH YOU LIVE BEFORE BEGINNING YOUR COMMENTS, THAT WOULD BE MUCH APPRECIATED. YOU HAVE TWO OPPORTUNITIES TO MAKE PUBLIC COMMENT ON AN AGENDA ITEM OR CITY-RELATED BUSINESS. FIRST IS AT THE PRESENT TIME AND SECOND WOULD BE WHEN WE ACTUALLY HEAR THE ITEM. SO IF YOU'LL PLEASE SELECT ONE OPTION, THAT WOULD ALSO BE APPRECIATED. CITIZEN COMMENTS ARE LIMITED TO THREE MINUTES WHILE NON-RESIDENT COMMENTS ARE LIMITED TO ONE MINUTE. AND A VISIBLE TIMER POSITIONED NEAR THE CITY SECRETARY'S DESK WILL ASSIST IN MANAGING THAT ALLOTTED TIME. IF YOU HAVE A PETITION OR ANY RELEVANT INFORMATION THAT YOU'D LIKE TO DISTRIBUTE TO US, IF YOU'LL PLEASE GIVE IT TO MS. HUERTA PRIOR TO SPEAKING. SHE WILL HAND THAT OUT TO US. SO TODAY WE HAVE 15 PUBLIC COMMENTS SO WE WILL START WITH MR. STEVEN CLEPPER. AND THEN WE'LL HAVE DAVID, SUSIE SALDANA, JOHN HANSLICK AND ABSEDE PUENTE. MR. CLEPPER. >> THANK YOU, MAYOR. STEVE CLEPPER, CORPUS CHRISTI. AS YOU KNOW YOU'RE READY TO IMMERSE YOURSELVES IN THE OPERATING BUDGET, THE SINGLE MOST IMPORTANT POLICY DOCUMENT THE CITY HAS EVERY YEAR. I WANTED TO SHARE SOME THOUGHTS ON THAT. AND HOPEFULLY THE BUDGET YOU END UP WITH CAN BE CONSIDERED, SINCE YOU ARE REPRESENTATIVES OF THE PEOPLE, MAYBE THE PEOPLE'S BUDGET, THAT REFLECTS THE CITY PEOPLE'S PRIORITIES AND VALUES. MAY 6 I PASSED OUT THIS LITTLE PRESENTATION TO COUNCIL. AND THE BOTTOM LINE, I'M GOING TO READ WHAT I WROTE. I STAND BY IT TODAY. FUNDAMENTAL QUESTIONS ABOUT CITY OPERATIONS REMAIN UNANSWERED. CITY ADMINISTRATION DOES NOT PROVIDE COUNCIL WITH SUFFICIENT INFORMATION TO MAKE INFORMED BUDGET DECISIONS ON A TIMELY BASIS BEFORE IT'S TOO LATE. ON JANUARY 14 I POINTED OUT THE CITY LACKS FUNDAMENTALS OF TRANSPARENT BUDGETING, NO DATA ON EFFICIENCY AND EFFECTIVENESS. NO EXPLICIT DEFINITIONS OF SERVICE AND SERVICE LEVELS. AND LACK OF SPECIFICITY ON HOW FEES AND SERVICES ARE DETERMINED. THOSE ARE SOME REALLY IMPORTANT QUESTIONS. HEADS UP, MR. RISLEY, A RHETORICAL QUESTION ABOUT TO HIT YOU. HOW DOES THE CITY KNOW WHETHER YOU'RE CHARGING APPROPRIATELY FOR SERVICES? YOU DON'T KNOW. THIS IS A QUESTION THAT THE BUDGET DIRECTOR ASKED. SHE SAID IN MARCH, THEY WERE GOING TO STUDY REVENUES. ARE WE CHARGING APPROPRIATELY FOR SERVICES? ON EXPENSES, ARE WE OPERATING EFFICIENTLY? SHE DIDN'T SAY EFFECTIVELY AND I WOULD MAINTAIN EFFECTIVELY IS FAR MORE IMPORTANT THAN EFFICIENTLY. LOTS OF QUESTIONS WITH NO ANSWERS. NOW, YEARS AGO BEFORE THIS ADMINISTRATION WAS HERE, THE CITY BUDGET OFFICE COMPILED A LIST OF CHARGES, FEES, AND SERVICES. WHAT THOSE FEES WERE -- I'M NOT TALKING UTILITIES, I'M TALKING ABOUT GENERAL FUND, MOSTLY. WHAT ARE THE FEES? WHAT'S THE HISTORY OF THOSE FEES? WHAT ARE THE COST RECOVERY TARGETS? MAYBE IT'S VARIABLE COST. MAYBE IT'S FULL COST. WHAT ARE THEY? HOW HAVE THEY BEEN? YOU GUYS ARE OPERATING IN THE DARK. WHEN IT COMES TO FEES THAT IMPACT THE PEOPLE, WHETHER IT'S A DEVELOPMENT SERVICES FEE, WHETHER IT'S HOW TO USE A PARK, A POOL, OR WHATEVER. LOTS TO TALK. I'VE STUDIED 30 YEARS ON THIS TOPIC. I HAVE A LOT TO SAY. I DO -- RECENTLY SOMEBODY ASKED ME -- CHANGING THE SUBJECT. I DON'T TRUST THE DEPARTMENTS. I DON'T TRUST THE CITY. WHO CAN I ASK QUESTIONS? I WANT TO REMIND THE CITY, THE PUBLIC, THAT THERE IS A CITY'S AUDITOR OFFICE ESTABLISHED IN 2010 THAT IS EQUIPPED TO ANSWER THOSE QUESTIONS. THANK YOU VERY MUCH. >> Mayor Guajardo: THANK YOU, MR. CLEPPER. DAVID LEHFELDT. >> GOOD AFTERNOON, MAYOR, CITY COUNCIL. I'M DAVID LEHFELDT, RESIDENT OF CORPUS CHRISTI, DISTRICT 5. KII TV DID A NEWS STORY AFTER I SPOKE LAST TIME AND THEY CAME UP WITH TWO NUMBERS THAT I WANT TO DISCUSS TODAY. THE FIRST WAS A 13.8% DIVERSION RATE. IF WE WERE TO CONSIDER THAT OUR RECYCLING RATE, A PROGRAM AS EXPENSIVE AS OURS, AS GOOD AS OURS, THAT WOULD STILL BE PATHETIC. WE HAVE BEEN IN POSITION FOR 15 YEARS AND IF THAT WAS AS GOOD AS WE COULD DO, I WOULD HAVE TO SAY IT'S NOT GOOD ENOUGH. BUT THAT'S THE DIVERSION RATE. THAT INCLUDES ALL THE BRUSH AND EVERYTHING ELSE WE KEEP OUT OF THE LANDFILL. OUR CURBSIDE RECYCLING RATE IS A REAL SIMPLE NUMBER. YOU TAKE ALL THE TONS THAT ARE COLLECTED BY THE TRASH TRUCKS AND ALL THE TONS COLLECTED BY THE RECYCLE TRUCKS. ADD THEM TOGETHER AND THEN DIVIDE THOSE INTO THE TONNAGE THAT WE ACTUALLY RECYCLE. I WILL GUARANTEE YOU THAT THE CURBSIDE RECYCLING RATE, NO MORE THAN 5% TO 7%. IF IT GOT UP TO 10%, I WOULD BE FLOORED. IT'S HORRIBLE. CITY MANAGER SAID 70% OF YOUR CITIZENS RECYCLE. THAT NUMBER DOESN'T STAND UP BASED ON THE TONNAGE THAT WE'RE RECYCLING. IT'S NOT THERE. AND THOSE THAT DO RECYCLE, DON'T RECYCLE EFFECTIVELY AND THEY DON'T RECYCLE CORRECTLY. AND SO WE'VE GOT A VERY EXPENSIVE PROGRAM. WE'VE GOT THE MOST EXPENSIVE PROCESSING CONTRACT IN THE STATE THAT'S ACCOMPLISHING NOTHING. ON TOP OF THAT, MANY OF YOUR NATIONAL ENVIRONMENTAL GROUPS, GREEN PEACE, SIERRA CLUB HAVE SAID THAT RECYCLING PLASTIC HAS NEVER WORKED. IT DOESN'T WORK TODAY AND IT'S NEVER GOING TO WORK IN THE FUTURE. WE'RE SPENDING $2.5 MILLION A YEAR ON A PLACEBO TO HELP OUR CITIZENS FEEL GOOD BECAUSE THEY'RE DOING SOMETHING FOR THE ENVIRONMENT. THEY'RE NOT. THEY'RE NOT DOING ANYTHING THAT WILL HELP THE ENVIRONMENT. IT'S JUST NOT THERE. I'VE BEEN IN THIS BUSINESS FOR 30 YEARS. I CONSIDER MYSELF AN EXPERT. WE'VE DONE THE BEST WE CAN. YOU'VE GOT A GREAT TEAM ON YOUR RECYCLING PROGRAM. YOU'VE GOT GREAT EQUIPMENT. THERE'S NOTHING WRONG WITH THE PROGRAM OTHER THAN THE FACT THAT YOUR CITIZENS DON'T WANT IT. THEY DON'T USE IT AND THEY DON'T USE IT PROPERLY. THANK YOU VERY MUCH. >> Mayor Guajardo: THANK YOU, MR. LEHFELDT. JUST AS A REMINDER, FOR THE COUNCIL, WE DO HAVE INFORMATION COMING REGARDING THE PROGRAM. SO WE WILL HOPEFULLY HAVE THAT SOON. SUSIE SALDANA. >> SUSIE LUNA SALDANA, CORPUS CHRISTI TEXAS. YOU KNOW, I COME BEFORE YOU BECAUSE LAST WEEK YOU TALKED AND YOU'RE TALKING TODAY ABOUT BEING BELOW BUDGET. YOU'RE GOING TO HAVE TO MAKE CUTS. YOU'RE GOING TO HAVE TO MAKE ALL THESE THINGS. AND THEN I HEAR ABOUT THE NAMING OF THE AMERICAN BANK CENTER. MY GOD, YOU ARE THROWING AWAY MONEY, ACTUALLY THROWING AWAY MONEY. AND LET ME TELL YOU WHEN I BRING THIS UP TO YOU IS BECAUSE YOU KEEP UP WITH THE NEWS AND EVERYTHING GOING ON, BUT I WAS HERE AT THE BOARD MEETING LAST WEEK WHEN COUNCILMAN MARK SCOTT COMPARED THE TWO GREAT COMPANIES THAT ARE BIDDING FOR THE NAMING OF THE CENTER TO THE PROUD BOYS. SHAME ON YOU. BECAUSE THESE ARE TWO COMMUNITY LEADERS THAT ARE GREAT PEOPLE THAT HAVE COME FORWARD AND BROUGHT IT FORWARD TO YOU TO PUT THEIR NAMES FORWARD. THEY ARE RESPECTABLE PEOPLE IN OUR COMMUNITY THAT HAVE GIVEN A LOT TO OUR COMMUNITY. SO MY QUESTION TO YOU, RHETORICALLY, IS I DON'T EXPECT AN ANSWER, IS WHO IS GOING TO MAKE UP THE DIFFERENCE? ARE THE THREE PEOPLE THAT WERE NAMED BY THOMAS J. HENRY, NAMELY COUNCILMAN BARRERA, MAYOR GUAJARDO, AND COUNCILMAN SCOTT GOING TO MAKE UP THE DIFFERENCE IN THE MONEY WE'RE GOING TO USE FOR OUR COFFERS THAT WE NEED TO MAKE OUR PROJECTS WORK? IT'S TIME YOU TAKE A LOOK AT THIS. YOU ARE THE COUNCIL. YOU CAN CHANGE IT. YOU CAN CHANGE WHAT'S GOING ON AND IT'S IMPORTANT THAT YOU DO IT. PUT YOUR FEET WHERE THEY BELONG, AND THE TAXPAYERS' FEET BECAUSE YOU'RE LEAVING US WITHOUT SHOES. >> Mayor Guajardo: THANK YOU, MS. SALDANA. JUST AS A STATEMENT OF FACT, THAT WAS A VOTE I ABSTAINED FROM AND THE COUNCIL MEMBERS HAVE TO GIVE THEIR REASONS AS TO WHY THEY VOTED THE WAY THEY DID. JOHN HANDLICK. >> GOOD AFTERNOON, MAYOR, COUNCIL. MY NAME IS JOHN HANDLICK, DISTRICT 5 CORPUS CHRISTI. WATER IS ONE OF THE MOST IMPORTANT ISSUES FACING THE COASTAL BEND RIGHT NOW. I'M A LOCAL BUSINESS OWNER. I OWN TFW CONSTRUCTION. WE HAVE ABOUT 60 PEOPLE THAT WE EMPLOY. AND THEIR FAMILIES ALL DEPEND ON A PAYCHECK THAT WE PROVIDE. OBVIOUSLY, HOUSEHOLD WATER IS OF THE UTMOST IMPORTANCE BUT BEYOND THAT WE NEED TO ENSURE THAT OUR INDUSTRY PARTNERS HAVE AN AFFORDABLE, SUSTAINABLE WATER SOURCE FOR YEARS TO COME, NOT ONLY FOR THE CURRENT INDUSTRY THAT'S HERE THAT HAVE SUPPORTED THIS CITY FOR YEARS, BUT ALSO TO ENCOURAGE OTHERS TO COME AND MAKE THE COASTAL BEND THEIR HOME. THE MARY RHODES IS SAVING US RIGHT NOW. IT IS CRITICAL THAT OUR CITY NOT BE SOLELY RELIANT ON SURFACE AND GROUNDWATER. OVER THE PAST DECADE THERE HAVE BEEN NUMEROUS STUDY TO SUPPORT THAT. PASSING ITEM 19 ON THE AGENDA SENDS A MESSAGE THAT YOU ARE NOT IN FAVOR OF THE CITY'S PROPOSED INNER HARBOR DESALINATION PLANT. I FEEL THAT MICROMANAGING FROM CITY COUNCIL COULD DERAIL THE ENTIRE PROJECT. IF WE DO NOT CONTINUE MOVING FORWARD, IT COULD DAMAGE THE COUNCIL AND THE CITY'S CREDIBILITY WITH LEGISLATORS WHO MAKE DECISIONS AND FUTURE WATER FUNDING. THE CITY SIMPLY CANNOT AFFORD TO RUN OUT OF WATER AND AS A LIFELONG CITIZEN OF CORPUS CHRISTI, I FEEL THAT THE INNER HARBOR DESAL IS THE VIABLE SOLUTION MOVING FORWARD. >> Mayor Guajardo: THANK YOU. ABSEDE FUENTES. >> WHERE AM I TAKING MY PAPERS TO? >> Mayor Guajardo: RIGHT HERE. >> BEFORE I BEGIN [OFF MIC] TODAY OUR COUNCIL MEMBERS SPOKE A LOT ABOUT LOW BUDGET. I CANNOT HEAR THE THINGS THAT Y'ALL SAY BECAUSE I SEE THE THINGS THAT YOU DO OVER AND OVER AND OVER AGAIN. YOU COME TO US YOUNG PEOPLE FOR HOPE -- >> City Secretary: CAN YOU STATE YOUR NAME AND CITY FOR THE RECORD PLEASE? >> YES, MA'AM. ABSEDE FUENTES AND I'M REPRESENTING DISTRICT 1. ANYWAYS, YOUR EMPTY WORDS HAVE ROUTINELY STOLEN MY DREAMS AND MY CHILDHOOD BUT NOT JUST ME BUT MY ENTIRE GENERATION. YET BECAUSE OF MY RESILIENCE I'M CONSIDERED ONE OF THE LUCKY ONES. PEOPLE IN THE CITY ARE SUFFERING. PEOPLE ARE DYING. DEATH ISN'T JUST SOMETHING THAT IS PHYSICAL, FAMILIES ARE LOSING THEIR LIVES TO POVERTY, TO DESPERATION. ENTIRE GENERATIONS ARE COLLAPSING. WE STAND AT THE START OF A MASS WAVE OF ANTI-INTELLECTUALISM AND I SPEAK TO YOU AS A MEMBER OF THE CURRENT GENERATION. THE GENERATION COMING FORWARD. AND STILL YOU SPEAK ONLY OF MONEY AND FAIRY TALES OF ETERNAL ECONOMIC GROWTH. I SPEAK ON BEHALF OF MARY CARROLL HIGH SCHOOL. I WAS COMMISSIONED BY MY FELLOW STUDENTS TO TALK ABOUT THE REAL STRUGGLES OF TODAY. OVER 1,100 PEOPLE ARE CONSIDERED HOMELESS. WE ARE RANKED TOP TEN NEEDIEST NATIONWIDE. TEEN PREGNANCY IS 46% ABOVE THE NATIONAL AVERAGE AND NEARLY 15% OF LOCAL ADULTS LACK A HIGH SCHOOL DIPLOMA. THESE ARE NOT RANDOM STATISTICS, THIS IS A SYMPTOM OF ONE ROOT CAUSE. THE LACK OF ACCESS TO QUALITY EDUCATION IN BOTH THE HOME AND IN SCHOOL. WE ALL KNOW THAT DUE TO THE CURRENT PRESIDENTIAL ADMINISTRATION, AVENUES SUCH AS JOB CORPSES ARE BEING CUT AND THE U.S. DEPARTMENT OF EDUCATION IS UNDER THREAT. THAT MEANS FEWER RESOURCES TO OUR MOST VULNERABLE COMMUNITIES, EXACTLY HERE IN CORPUS CHRISTI. SO I ASK YOU, ACT LOCALLY. TODAY I WANT TO ASK YOU TO FUND AN EDUCATION AND FAMILY RESILIENCE INITIATIVE. THEN I WANT YOU TO LAUNCH A PARENTING AND LIFE SKILLS PROGRAM AND BUILD CAREER VOCATIONAL PIPELINES. ADDITIONALLY, I'M ASKING YOU TO EXPAND YOUTH HOUSING AND MENTAL HEALTH SERVICES AND CREATE THE YOUTH CIVIC FELLOWSHIPS. NOW I HAVE DEFINED WHAT ALL OF THAT MEANS UNDER MY LOCAL PLAN ON THE SECOND PAGE. NOW, WHY DOES THIS MATTER? EDUCATION ISN'T JUST READING OR ARITHMETIC, IT'S ABOUT COMMUNITY. WHEN WE GIVE OUR YOUNG GENERATION A BRAIN OF THEIR OWN TO USE, A MIND THAT THEY HAVE TO DEVELOP, THAT ALLOWS THEM TO GO INTO HIGHER EDUCATION. WHEN WE ALLOW STUDENTS TO GO INTO HIGHER EDUCATION, THEY'RE ABLE TO GET A JOB THAT PAYS BETTER. WHEN PEOPLE ARE PAID BETTER, THEY'RE MORE LIKELY TO STIMULATE OUR ECONOMY. AND WHEN THEY'RE STIMULATING OUR ECONOMY, NOT ONLY DO THEY BENEFIT, BUT YOU AS A CITY BENEFIT AS WELL. NOT ONLY THAT, THEY'LL TEACH THEIR CHILDREN. I ASK OF YOU TO HELP. TO START SOMETHING. CITY LEADERS CALL CORPUS CHRISTI A SMALL TOWN BUT WHAT IS A SMALL TOWN WITHOUT COMMUNITY? I ASK YOU TO ACT NOW. THANK YOU. >> Mayor Guajardo: THANK YOU, MS. FUENTES. JASON HALE. COUNCILMAN HERNANDEZ. >> Hernandez: MICHAEL, MAYBE YOU CAN HELP ON THIS. BUT MAYBE WE CAN SHARE SOME INFORMATION WITH MS. FUENTES ABOUT SOME OF THE PROGRAMS THE CITY DOES HAVE. SOME OF THESE THINGS THAT SHE IS REFERRING TO, WE DO HAVE THINGS THAT ADDRESS THAT. BUT I'M NOT SURE IF THAT'S COMMUNICATED VERY WELL. MAYBE WE CAN PUT SOMETHING TOGETHER FOR HER. IT'S NOT EVERYTHING BUT I THINK THERE'S SOME THINGS THAT WE DO COVER IN SOME OF HER ITEMS THAT SHE PUT THERE. LIKE THE CAREER VOCATIONAL PIPELINES AND THE FUNDING FOR DEL MAR THROUGH THE TYPE B ISSUES. SOME INFORMATION THAT CAN BE PASSED TO HER. I DON'T THINK HER TO THINK WE'RE NOT DOING ANYTHING, BECAUSE SOMETIMES WE DON'T PUBLICIZE THAT WELL. >> NO PROBLEM, COUNCILMAN. >> Mayor Guajardo: THANK YOU, COUNCILMAN. MR. HALE. >> JASON HALE, CORPUS CHRISTI. THANK YOU, MAYOR. GOOD AFTERNOON, COUNCIL MEMBERS. TODAY I'M GOING TO TALK ABOUT DESALINATION AND THE INNER HARBOR PLANT. NEXT MONTH THE MODELING RESULTS FROM GHD ARE GOING TO BE PRESENTED SO I WANTED TO PUT IN A REQUEST AND FLAG A POTENTIAL ISSUE. OKAY. SO FIRST TOPIC IS HYPOXIA. IT'S A BIG CONCERN WITH THIS PLANT. AS YOU KNOW HYPOXIA IS LOW AMOUNTS OF OXYGEN IN THE WATER. THE PRIMARY CONCERN IS THE WATER ON THE BOTTOM OF THE SHIP CHANNEL BECAUSE BRINE IS HEAVY, IT SINKS, AND THERE'S AQUATIC LIFE DOWN THERE THAT NEEDS OXYGEN. DESALINATION, IT GENERATES SALINITY PLUMES. THEY START OUT WITH A FIXED AMOUNT OF OXYGEN BUT IT RUNS OUT OVER TIME. SO MY REQUEST IS FOR GHD TO TELL US HOW LONG THE PLUMES OF EFFLUENT WILL LAST BEFORE THEY ERODE. THAT WAY WE CAN GAUGE HOW LIKELY IT IS TO CAUSE HYPOXIA OR DEAD ZONES. SO THE PICTURE HERE SHOWS LOW OXYGEN LEVELS THAT HAPPEN EVERY SUMMER IN THE CORPUS CHRISTI BAY. SCIENTISTS, DR. HODGES, STUDIED THIS IN 2010 AND CAME UP WITH A CONCEPT OF ISOLATION TIME. WHERE THE LONGER THE PLUME LASTS THE MORE LIKELY IT IS TO RUN OUT OF OXYGEN. AND THIS IS A SALINITY PLUME SHOWN IN THE CITY'S MODELING, WHICH IS ON THE CITY'S WEBSITE. OKAY. SO THE SECOND ISSUE IS IN REGARDS TO GHD'S MODELING DOMAIN. THIS WAS PRESENTED LAST WEEK BY BRETT. I NOTICED IT WAS MISSING THE INTAKE FOR THE NUECES BAY POWER STATION SO I WANTED TO MAKE SURE IT WAS BROUGHT UP. THE DIVERSION IS IMPORTANT BECAUSE IT MOVES A LOT OF WATER FROM THE INNER HARBOR TO THE NUECES BAY, AROUND 300 MILLION GALLONS A DAY. IF IGNORED, IT CAN LEAD TO AN OVERESTIMATION OF OUTFLY TO THE CORPUS CHRISTI BABY 20%. SINCE LOWER FLOW MEANS HIGHER CONCENTRATIONS, THAT COULD LEAD TO PUERTO VIOLATIONS, SO I WANTED TO POINT THAT OUT. THE INPUTS AND THE OUTPUTS DON'T MATCH UP. IF THERE WERE TRUE, THE INNER HARBOR WOULD LOSE WATER EVERY DAY UNTIL IT WENT DRY. THE OUTGOING WOULD BE 900 MILLION GALLONS INSTEAD OF 1200, WHICH IS A BIG DIFFERENCE. OKAY. HERE ARE MY QUESTIONS FROM THE PRESENTATION IN JULY. I WANT TO KNOW ABOUT THE SALINITY PLUMES, THE SALINITY INCREASE TO THE NUECES BAY. AND I ALSO WANT TO KNOW WHAT WAS USED FOR THE TIDAL EXCHANGE. BY THAT I MEAN WHEN EFFLUENT LEAVES THE INNER HARBOR ON AN OUTGOING TIDE, HOW MUCH COMES BACK ON THE INCOMING TIDE? I FEEL LIKE THIS ASSUMPTION CAN DRAMATICALLY CHANGE THE MODEL'S RESULTS SO I THINK IT WOULD BE GOOD TO KNOW. ANYWAYS, THAT'S IT. >> Mayor Guajardo: THANK YOU, MR. HALE. ISABEL ARAIZA. ISABEL. THERE YOU ARE. >> ISABEL ARAIZA, DISTRICT 2, CO-FOUNDER OF FOR THE GREATER GOOD. I WANT TO ADDRESS TWO POINTS FROM THE LAST WEEK'S DESALINATION PRESENTATION. THE FIRST IS TO REMIND EVERYONE THAT THE PILOT PROJECT OF THE DESAL PLANT IS NOT TO ASSESS THE IMPACT OF DESALINATION ON THE BAY SYSTEM, WHICH INCLUDES CORPUS CHRISTI BAY, NUECES BAY, RED FISH BAY, AND OSO BAY. SUCH A STUDY HAS NEVER BEEN DONE. THE MODEL IS FOR THE DESIGNED DIFFUSER. ADDITIONALLY, THE MODELING WILL ONLY RUN FOR ONE MONTH. IF THIS PLANT BECOMES OPERATIONAL, THE GOAL ISN'T FOR IT TO RUN FOR JUST A MONTH OR JUST A YEAR. AS A COMMUNITY, OUR CONCERN ISN'T ABOUT THE DIFFUSER DESIGN, IT'S ABOUT THE IMPACT OF THE INTAKE DISCHARGE ON OUR BAY. THIS BAY SYSTEM DIDN'T EVOLVE TO HAVE A DESALINATION PLANT THAT WILL BE SUCKING NEARLY 100 MILLION GALLONS OF WATER FROM THE BAY A DAY OR TO HAVE MORE THAN 50 MILLION GALLONS OF BRINE AND SLUDGE DUMPED BACK INTO THE BAY DAY AFTER DAY. ENTERTAINING THE BUILDING OF THIS DESALINATION PLANT WAS AND CONTINUES TO BE ABSURD. REMEMBER, WE ARE DOING JUST A MONTH OF MODELING BECAUSE WE HAVE PRIORITIZED THE MINIMUM PERMITTING REQUIREMENTS AND THE COST TO RUN THE MODEL OVER DESAL'S LONG-TERM IMPACTS TO OUR BAY AND OVER DESAL'S IMPACT ON ALL THE BUSINESSES AND PEOPLE WHOSE LIVELIHOOD AND WELL-BEING DEPEND ON OUR BAY SYSTEM. THE SECOND ISSUE FROM LAST WEEK'S PRESENTATION I WANT TO RAISE IS THE COST OF THE PILOT PROJECT. FREESE AND NICHOLS INITIALLY SAID IT WAS GOING TO COST $5 MILLION. ZANONI TOLD YOU UP TO $18 MILLION. BRETT, THE PRESENTER, SAID WE DON'T KNOW WHAT IT'S GOING TO COST BUT IT SHOULD BE SOMEWHERE BETWEEN 11 AND $12 MILLION. ZANONI SAID THE DIFFERENCE IS DUE TO FREESE AND NICHOLS ESTIMATING COSTS AND A BUILDER WHO ACTUALLY CARRIES OUT THE ORDER KNOWING THE COST. FREESE AND NICHOLS FAILED TO INCLUDE SOME IMPORTANT COSTS IN THEIR ORIGINAL COST ESTIMATES FOR THE PILOT PROJECT. THIS BRINGS ME TO ITEM 19. I FULLY SUPPORT TAKING POWER AWAY FROM THE CITY MANAGER TO ENTER INTO CONTRACTS AND SIGN CHECKS WITHOUT FIRST GETTING AUTHORIZATION FROM CITY COUNCIL. TIME AND TIME AGAIN ZANONI HAS DEMONSTRATED AN INABILITY TO DISCERN WHAT OUR REASONABLE COSTS OF DOING BUSINESS. REMEMBER, LAST SEPTEMBER WE LEARNED THAT IN 11 MONTHS ZANONI'S OFFICE SPENT $44,000 ON RESTAURANT, FOOD FOR HIMSELF AND HIS TEAM. WHEN CONFRONTED ABOUT THIS OUTRAGEOUS SPENDING, ZANONI BRUSHED IT OFF AS THE COST OF DOING BUSINESS. ZANONI'S JUDGMENT CANNOT BE TRUSTED. THE WATER COLLABORATIVE CONSULTANT STATED THE DESIGN APPROACH TO BUILD PROJECTS WAS A WAY TO ADDRESS WHAT HE CALLED THE STICKER SHOCK OF PUBLIC PROJECTS. MOST OF US WERE SHOCKED BY FREESE AND NICHOLS' ESTIMATE. IF WE USED THE ESTIMATE TO EXTRAPOLATE THE TRUE COST, NOT THE OPERATION, JUST BUILDING, WE CAN GUESS IT WILL COST BETWEEN 1.7 AND $2.7 BILLION TO BUILD. DON'T PUT THE POWER OF THAT LARGE OF A PURSE IN ZANONI'S HANDS. WE CAN'T AFFORD IT. SUPPORT ITEM 19. >> Mayor Guajardo: THANK YOU, MS. ARAIZA. I THINK AL IS NOT GOING TO MAKE COMMENT AFTER ALL. CHLOE TORRES. AND THEN WE'LL HAVE JAKE HERNANDEZ, ADAM RIOS, RACHEL CABALLERO, AND JOSHUA FREDERICK. >> OKAY. GOOD MORNING. MY NAME IS CHLOE TORRES, I LIVE IN DISTRICT 2. I'M GOING TO BE GIVING A COMMENT ON BEHALF OF TEXAS CAMPAIGN FOR THE ENVIRONMENT. I WANT TO AGAIN ECHO THE SUPPORT FOR AGENDA ITEM 19 AND ASK FOR YOUR VOTE TO TAKE POWER, PRIMARY DECISION-MAKING POWER OVER CONTRACT NEGOTIATIONS FROM PETER ZANONI BACK TO THE CITY COUNCIL, WHO WE ELECTED. AND FOR THOSE COUNCIL MEMBERS WHO HAVE EXPRESSED CONCERNS ABOUT THE NEGATIVE ENVIRONMENTAL IMPACTS OF THE DESALINATION FACILITY, YOU HAVE A RIGHT TO BE WORRIED. AND WE IMPLORE YOU TO KEEP ADVOCATING FOR FURTHER INDEPENDENT MODELING. I JUST WANTED TO READ EXCERPTS FROM TWO EXPERT TESTIMONIES, BOTH OF WHOM MADE CLEAR THAT THE MODELING PURSUED BY THE CITY IN ITS TCEQ PERMITS ARE INSUFFICIENT. THE FIRST IS FROM DR. SCOTT SOAKLOVSKI [LAPSE IN AUDIO] HE IS AN EXPERT IN CORE MIX MODELING, WHICH IS THE MODELING PROPOSED IN THE TCEQ PERMIT. AND HE SAYS: THAT ADDITIONAL FAR-FIELD MODELING IS NEEDED IN ORDER TO ADEQUATELY DETERMINE THE IMPACTS OF THE DISCHARGE, A 3-D FAR-FIELD MODELING ANALYSIS COUPLED TO THE CORE MIX OUTPUT NEEDS TO BE CONDUCTED. THE SECOND TESTIMONY IS FROM DR. BEN HODGES, WHO HAS A PhD FROM STANFORD UNIVERSITY IN CIVIL ENGINEERING. AND HIS AREA OF EXPERTISE IS IN ENVIRONMENTAL AND WATER RESOURCES ENGINEERING. HE STATED THE FOLLOWING: THE CITY OF CORPUS CHRISTI'S PERMIT APPLICATION, CORE MIX MODELING, AND THE SUBSEQUENT RESPONSE TO THE TCEQ REQUEST FOR INFORMATION DO NOT, AS A MATTER OF SCIENCE, PROVIDE CONFIDENCE THAT THE PLANNED INSTALLATION OF THE INNER HARBOR DESALINATION PLANT WILL BE PROTECTIVE OF WATER QUALITY AND ECOSYSTEM HEALTH. I UNDERSTAND THAT THE PORT, THERE WERE DISCUSSIONS ABOUT THE PORT'S MODELING. AND IT UNDERSCORES TWO POINTS. THAT APPLICANTS PROPOSING COMPARABLE DISCHARGES TO THE CITY HAVE CONDUCTED FAR-FIELD MODELING TO BETTER UNDERSTAND THE SCOPE OF POTENTIAL IMPACTS. AND THE RESULTS OF THE PORT'S MODELING INDICATED THE INNER HARBOR AND LA QUINTA PROJECTS WOULD CAUSE A SALINITY INCREASE GREATER THAN TWO PARTS PER THOUSAND, STRETCHING BEYOND THE INNER HARBOR INTO CORPUS CHRISTI BAY. I THINK GOING BACK TO COMMENTS THAT WERE MADE BY COUNCIL MEMBER LAST WEEK OF WE HAVE THE TCEQ PERMITS AND THEREFORE THIS FACILITY IS SAFE AND ENVIRONMENTALLY SOUND, I IMPLORE YOU TO LOOK INTO THE LONG HISTORY OF COMPLAINTS WITH THE TCEQ. BECAUSE, AS DR. ARAIZA STATED, THEY DO NOT LOOK INTO THE CUMULATIVE IMPACTS OF PROJECTS. IF YOU ALSO HAVE THE INNER HARBOR, YOU HAVE LA QUINTA, AND YOU HAVE CC POLYMERS. WE'RE NOT DOING OUR DUE DILIGENCE. >> Mayor Guajardo: THANK YOU, MS. TORRES. JAKE HERNANDEZ. >> HELLO. JAKE HERNANDEZ, CITY COUNCIL DISTRICT 2. I'M HERE TO STATE MY SUPPORT FOR AGENDA ITEM 19. I BELIEVE THAT THE CITY COUNCIL, OUR ELECTED OFFICIALS, SHOULD HOLD THE DECISION-MAKING POWER OVER HOW WE SPEND MILLIONS OF OUR TAX DOLLARS FOR THE DESIGN AND MATERIAL CONTRACTS FOR THE HILLCREST DESALINATION PLANT. RESTORING DECISION-MAKING POWER TO THE CITY COUNCIL WOULD MAKE THIS PROCESS MUCH MORE DEMOCRATIC AND WOULD ALLOW THE RESIDENTS OF CORPUS CHRISTI TO ALSO HAVE A SAY BY EXTENSION AS WELL. THAT BEING EITHER THROUGH PUBLIC COMMENTS, CONTACTING OUR ELECTED OFFICIALS AND SPEAKING TO THEM ON THE PHONE OR IN PERSON. THAT WOULD GIVE RESIDENTS AN ACTUAL AVENUE TO HAVE A SAY OVER HOW WE ARE GOING TO SPEND THESE MILLIONS OF OUR TAX DOLLARS. AND I CAN'T THINK OF ANY ONE REASON WHY YOU WOULD BE AGAINST THAT. BUT A REMINDER THAT CITY MANAGER PETER ZANONI WAS HIRED YEARS AGO. AND THAT IN THOSE YEARS THE CITY COUNCIL HAS CHANGED MULTIPLE TIMES AND THE ELECTORATE HAS CHANGED AS WELL. IT GROWS, IT CHANGES. PEOPLE LEAVE CORPUS. PEOPLE MOVE TO CORPUS. PEOPLE DIE. PEOPLE JUST TURN 18 AND GET TO REGISTER TO VOTE. IN THAT TIME, WHO'S TO SAY THAT THE RESIDENTS OF CORPUS CHRISTI WOULD ELECT THE SAME CITY COUNCIL THAT WOULD APPOINT PETER ZANONI? WE HAVE NO WAY OF KNOWING THAT. SO, THIS WILL BE A SHORT COMMENT AND THIS IS JUST THE LAST TIME I REITERATE THIS. BUT PLEASE TAKE THAT DECISION-MAKING POWER AWAY FROM PETER ZANONI AND PUT THAT DECISION-MAKING POWER BACK INTO YOUR OWN HANDS BECAUSE THIS IS THE WAY THAT RESIDENTS THEMSELVES CAN ACTUALLY HAVE A SAY OVER HOW WE ARE GOING TO TREAT THE FUTURE OF OUR WATER MANAGEMENT AND OUR OWN TAX DOLLARS. SO, THANK YOU VERY MUCH. >> Mayor RIOS. >> Rios: GOOD AFTER, EVERYONE. CORPUS CHRISTI, DISTRICT 5. I WANT TO TALK ABOUT SOMETHING THAT CAUGHT MY ATTENTION. I KNOW THERE'S A LOT GOING ON WITH JUST THE NAMING OF THE AMERICAN BANK CENTER. AND I PROMISE YOU I'M KEEPING THIS AS POSITIVE AS POSSIBLE. WANT TO TALK ABOUT MY OWN PERSONAL EXPERIENCE IN DEALING WITH THE MANAGEMENT COMPANY THAT CURRENTLY OPERATES THE AMERICAN BANK CENTER. AND THIS IS BASED ON YEARS OF EXPERIENCE ON MY RESUME. WHEN I MOVED TO CORPUS I SAW THE AMERICAN BANK CENTER AND THERE WAS A JOB POSTING. I WAS LIKE, WOW, I JUST MOVED FROM AUSTIN, 20 YEARS EXECUTIVE CHEF, ALL OF THIS STUFF ON MY RESUME. SEEMED TO BE A CATER POSITION FOR ME. I WENT ON THERE. THAT WAS THE FIRST TIME I HAD SEEN THAT. I THOUGHT, WHO IS THIS MANAGEMENT COMPANY THAT DOESN'T LIVE HERE AND WHY AM I GOING THROUGH THEM TO GET A JOB LOCALLY? ANYWAY, DID ALL THE SUBMISSIONS. DID THIS AND THAT. OF COURSE NOTHING. NO FOLLOW-UP. NO EMAIL. NO CONTACT. NO ANYTHING. AND THAT IS WHEN I LEARNED, OH, MY GOD, I KNOW THAT NAME ALREADY. THEY'RE IN AUSTIN. AND I HAD NOT WORKED WITH THEM DIRECTLY. GOD BLESS YOU. I HAD NOT WITH THEM DIRECTLY. THEY DO THE MOODY CENTER. NOT THE MOODY CENTER THAT EVERYBODY KNOWS WITH ACL BUT THE MOODY CENTER ON CAMPUS THAT USED TO BE THE IRWIN CENTER. ANYWAY, I DECIDED TO START MY OWN CONSULTING GROUP HERE IN CORPUS. THAT'S GOING TO BE THE PATH THAT I'M GOING TO HAVE TO TAKE. RIGHT AROUND OCTOBER 23, THE NITRO CIRCUS WAS COMING TO TOWN. MOTORCROSS BMX SKATEBOARDING. IT WAS THE 20th ANNIVERSARY. THIS IS PERFECT. AMAZING. IT'S GOING TO BRING A LOT OF ATTENTION HERE. THEY WEREN'T SELLING ANY TICKETS BECAUSE THERE WAS NO ADVERTISING OR PROMOTION GOING INTO IT. EVENTUALLY I WAS APPROACHED BY SAID ORGANIZATION. AND THROUGH AN ACQUAINTANCE. AND HE SAID, HEY, WE COULD USE YOUR HELP PROMOTING THIS EVENT. OF COURSE, I CAN DO WHAT I CAN BECAUSE THAT'S RIGHT UP MY ALLEY. THAT'S WHEN I STARTED TO LEARN THE LESSONS OF THIS COMPANY. I AGREED TO HELP. WENT ON SOCIAL MEDIA, RADIO, PODCASTS. I WAS COMING HERE AND TALKING ABOUT IT ON OPEN COMMENT. I WAS NETWORKING LOCAL SHOPS FROM AUSTIN TO CORPUS CHRISTI. THEY GAVE ME TWO FREE TICKETS FOR ALL MY EFFORTS AND HELP. BUT I WAS LIKE, YOU GUYS DIDN'T WANT TO HIRE ME BEFORE BUT YOU CERTAINLY NEEDED MY HELP NOW. ANYWAY, THEY'RE A HUGE CONGLOMERATE. ALL I COULD THINK WAS, WHERE IS YOUR MARKETING DEPARTMENT AND WHY ARE OUR SHOWS DIFFERENT FROM THE VENUE YOU RUN IN AUSTIN WHEN IT'S NOT THAT MUCH BIGGER. WELL, BECAUSE IN AUSTIN THEY HAVE THE PARTNERSHIP OF LIVENATION. THEY HAVE THE PARTNERSHIP OF C3. THE BRAND AMBASSADOR OF MATTHEW McCONAUGHEY. WHAT YOU DON'T KNOW IS THAT CENTER THEY RUN IS BY AN ANTI TRUST ABOUT POTENTIAL CONCLUSION ABOUT THE PROCESS. THEY'RE WORTH LOOKING INTO. ANYWAY, THAT'S MY COMMENT. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. RIOS. GOOD AFTERNOON. RACHEL D1. I WOULD LIKE FOR YOU ALL TO PLEASE CONSIDER TERMINATING OBG'S CONTRACT TO FOR FAILURE TO DO THE JOB THEY WERE HIRED TO DO. THEY RUN A LOSS WHICH MAKES NO LOGICAL SENSE. THEY HAVE NOT PROVIDED A FINANCIAL UPDATE IN TWO YEARS. THEY KICKED OUT LOCAL RESTAURANT TEARS FROM CATERING. DRIVING UP TICKET PRICES. THE COMPLETE DISASTER OF THE NAMING RIGHTS RESULTING IN A $7 MILLION LOSS BECAUSE OF LOCAL, CORRUPT POLITICS. THEY HAVE PROVEN TO BE INCOMPETENT AND POOR COMMUNITY PARTNERS. REGARDING AGENDA ITEM 25, 09852349 ADDITIONAL PURCHASES OF APARTMENT BUILDING WHICH COULD RESULT IN TAX ROLL LOSSES IN EXCESS OF $350 MILLION, THANK YOU FOR IMMEDIATELY TERMINATING THESE UNSCRUPULOUS, POLITICAL ACTIVITIES. THIS IS A RESULT OF POOR LEADERSHIP AND LACK OF COMMITTEE OVERSIGHT. OR, THIS IS CORRUPT COLLABORATION. I BELIEVE THE ETHICS COMMISSION SHOULD LOOK INTO THIS NEFARIOUS ACTIVITY AND IMMEDIATELY TERMINATE STAFF OR RECALL ANY ELECTEDS INVOLVED WITH THIS ILLEGAL BEHAVIOR. AS A TAXPAYER ADVOCATE I WOULD LIKE TO THANK COUNCIL PEEL QUANTITY AND HERNANDEZ FOR UNDERSTANDING THE NEED TO CURTAIL IN REGARDS TO THE EXPERIMENTAL ANN ARBOR DESALINATION PLANT. IT'S INNEY CALL TO ALLOW A SINGLE INDIVIDUAL TO OVER SUE A BILLION DOLLAR EXPERIMENTAL PROJECT THAT HAS POTENTIAL OF KILLING OUR CORPUS CHRISTI BAY, ITS ECOLOGICAL SYSTEM, BAYS AND ESTUARIES AND PUT PUT US IN FUTURE DEBT. THANK YOU FOR DOING THAT. IS A SOUND BIT FROM 6-10. >> IF WE SOLVE THIS OPPORTUNITY HERE, IF YOU HELP US SOLVE THIS OPPORTUNITY HERE, THEN WHAT THAT DOES IS THAT FREES UP OUR COLORADO WATER AND I'VE ALREADY -- I HAVE RELATIONSHIPS IN CENTRAL TEXAS, AND MANY OF THOSE INDIVIDUALS HAVE SAID, HEY, IF YOU GUYS SOLVE YOUR PROBLEM THERE, THEN WE COULD LEASE THE RIGHTS FROM YOU FROM THERE. AND IT WOULD BE EASIER FOR US TO TAP INTO, TO THOSE LINES. >> THERE IS NO LIGHT AT THE END OF THIS TUNNEL WITH THE COMMUNITY BEING TAKEN OFF OF WATER RESTRICTIONS, BUT HERE ARE SOME OF Y'ALL SELLING THE LITTLE WATER WE CAN GET OUR HANDS ON AND THE WATER WE DON'T EVEN HAVE IN OUR HANDS YET. SO THIS ISN'T A DROUGHT. OUR WATER IS DISAPPEARING. AND ALL NEW WATER IS GETTING SOLD BEFORE WE HAVE IT. MAKE IT MAKE SENSE. THIS IS NOT ADDING UP. HAVE THE DAY YOU DESERVE. >> Mayor Guajardo: THANK YOU. JOSHUA FREDERICK. >> Frederick: JOSHUA FREDERICK, CORPUS CHRISTI. I REALLY, REALLY EXCITED AFTER LAST COUNCIL MEETING AS LONG AS IT WAS TO HEAR PEOPLE TALKING ABOUT POSSIBLY ADDING QUESTIONS BACK TO PUBLIC EXEMPT. COMMENT I SEEWE'RE MOVING AT THF GOVERNMENT SINCE I BROUGHT IT UP TWO MONTHS AGO. I DO HAVE A SUGGESTION ON THE LANGUAGE AND THAT WOULD BE QUESTIONS ARE ALLOWED BUT WILL NOT RECEIVE A RESPONSE. THIS WOULD BE COMPLIANT WITH THE TEXAS OPEN MEETINGS ABILITY. OPEN MEETINGS ACT.I RECOMMEND YO THE SPEECH THAT MILES GIVES AT THE BEGI BEGINNING WITH ALL THE RULES. ESPECIALLY SINCE WE ARE MOVING THE PUBLIC COMMENT TIMES TO 5:30, WHICH I'M VERY, VERY AGAINST, BUT IF WE'RE GOING TO HAVE NEW PEOPLE HERE I RECOMMEND YOU MAKE IT VERY PUBLIC WHERE THEY ARE ALLOWED TO DO AND NOT ALLOWED TO DO. FURTHER, YOU KNOW, WE'VE HAD SOME PRETTY INTERESTING AND UNECTOMIEDLY LONG COUNCIL SESSIONS LATELY. I SAY WE BECAUSE I'VE BEEN HERE WITH YOU. AND I WANT TO CHALLENGE EVERYBODY UP THERE RIGHT NOW. IF YOU HAVE A PHYSICAL AGENDA, WRITE DOWN WHICH AGENDA ITEM YOU THINK WE WILL BE TALKING ABOUT AT 5:30. THIS WILL SERVE TWO PURPOSES. SHOW YOU HOW UNPREDICTABLE OUR MEETING CAN DO AND HOW HARD IT IS TO SPARE THE TIMING OUT WHICH WILL SHOW -- HOW HARD IT WILL BE FOR CITIZEN TO COME AND PREDICT. Y'ALL ARE PROFESSIONALS. YOU'VE BEEN TO MANY, MANY OF THESE. IMAGINE ME A CITIZEN TRYING TO TIME THAT OUT TO BE HERE TO COMMENT. IT WILL ALSO SHOW HOW MANY AGENDA ITEMS WILL HAVE PASSED BY 5:30 AND THERE WILL BE NO PUBLIC COMMENT ON THEM. IT WILL ALREADY BE VOTED ON. YOUR DECISIONS WILL ALREADY HAVE BEEN MADE. I WANT TO ONCE AGAIN ENCOURAGE YOU TO RECONSIDER THAT AGENDA ITEM THAT WE CHANGED JUST TWO WEEKS AGO. I REALLY THINK IT WAS A BAD IDEA. I WOULD BE MORE IN FAVOR OF ADDING A SECOND PUBLIC COMMENT TIME AT 5:30 TO INCLUDE MORE PUBLIC COMMENT. I HAVE A WHOLE MINUTE LEFT? I'M GOING TO USE THAT. RECENTLY THE STATE OF TEXAS PASSED A LAW ALLOWING FRACKING WATER THAT'S BEEN TREATED TO GO IN AGRICULTURAL USE. I DON'T KNOW IF YOU'RE IN FAVOR OF -- I DON'T REALLY CARE. WHAT I WOULD LIKE IS FOR THE CITY COUNCIL TO PASS AN ORDINARS TO REQUIRE ANY PRODUCE OF CONSUMABLE GOOD THAT HAD THAT WATER USED ON IT FOR GROWTH TO BE LABELED AS SUCH. PEOPLE THINK IT'S A GOOD IDEA, CAN FRIEND THOSE ITEMS AND EAT THEM ALL THEY WANT. AND THE PEOPLE WHO WANT TO AVOID IT CAN DO THE EXACT OPPOSITE. THANK YOU VERY MUCH FOR YOUR TIME. >> Mayor Guajardo: THANK YOU, MR. FREDERICK. DO WE HAVE -- IS IT EILEEN TRAVIS? WE HAVE TWO PEOPLE ON THE LINE. I'M NOT SURE WHICH ONE IT IS. MS. TRAVIS, ARE YOU ONLINE? >> YES, THANK YOU. CAN YOU HEAR ME? >> Mayor Guajardo: YES, WE CAN. >> HI, THERE. I'M GOING TO -- DISTRICT 2. HERE I'M SPEAKING IN SUPPORT OF AGENDA 19 AS I BELIEVE THE COUNCIL SHOULD HOLD REGARDING HILLCREST FACILITY INSTEAD OF THE CITY MANAGER WHO HAS NOT BEEN ELECTED AND STARTED PATTERNS OF PROBLEMATIC BEHAVIOR. INCLUDING THE IRRESPONSIBLE SPENDING OF TAXPAYER FUNDS. IT IS CLEAR THAT THE CITY LEADERSHIP DESPERATELY SEEKS INDUSTRIAL EXPANSION FOR PERSONAL GREED AND NOT FOR THE BETTERMENT OF OUR QUALITY OF LIFE. AND WE MUST BEGIN PUTTING PEOPLE FIRST, RESTORING THE CHECKS AND BALANCES TO OUR ELECTED CITY OFFICE IS A GOOD FIRST STEP. ONCE AGAIN, I ECHO WHAT OTHER COMMENTERS HAVE SAID. AND I EMPLOY THE COUNCIL TO BE IN SUPPORT OF AGENDA ITEM 18 TO HAVE A MORE DEMOCRATIC PROCESS AND THAT THE PEOPLE CAN HAVE MORE INPUT AND THE WAY THE CITY SPENDS MONEY. SO THAT'S ALL. I'LL KEEP IT SHORT. THANK YOU, COUNCIL. >> Mayor Guajardo: THANK YOU. NEXT IS LARAMY FANN. MR. FANN, ARE YOU ON THE LINE? >> YES, CAN YOU HEAR ME? >> Mayor Guajardo: YES, WE CAN. >> EXCELLENT. CORPUS CHRISTI, DISTRICT 2. I WAS CALLING IN TO VOICE MY SUPPORT FOR AGENDA ITEM 19. I WOULD ALSO ARGUE THAT IT NEEDS TO EXTEND TO ANY AND ALL FUTURE PROJECTS OF ANY SCOPE, NOT JUST THE DESALINATION PLANT IN THE HILLCREST NEIGHBORHOOD. I AK KNOWLEDGE PETER ZANONI AND HE WAS NOT APPOINTED BY A MAJORITY OF YOU BUT BY A COUNCIL WHICH NO LONGER HOLDS OFFICE. INCREASINGLY PROBLEMATIC TIME AND IRRESPONSIBLE BEHAVIOR WITH TAXPAYER DOLLARS. AND HAVING A HIT -- ON THE MOST CASHER OF ANYONE SITTING THERE TODAY. HE HAS COMMON STRAIGHTED TIME AND AGAIN HE IS A SELF-INTERESTED BULLY WITH NO REGARD TO PUBLIC INPUT. WE VOICE OUR CONCERNS AND WE GET CALLED NAMES. WE GET CALLED THE ANTI-GROWTH AND GREAT WASH. PETER IS INCREASINGLY CONSOLIDATING POWER AND YOU ARE ALLOWING IT TO HAPPEN THERE HAS TO BE A SYSTEM OF CHECKS AND BALANCES. YOU ARE THE ONES TO DO SO. AS I SAID, THE MAJORITY OF YOU DID NOT APPOINT PETER. DID F. YOU HAD MADE THAT APPOINTMENT TODAY KNOWING WHAT YOU KNOW TODAY, WOULD YOU HAVE DONE THAT. THAT'S ALL I HAVE TO SAY. I SUPPORT AGENDA ITEM 19. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. FANN. THE LAST PERSON IS ANDREA PUJOL, IF SHE'S ONLINE. >> HELLO, CAN YOU HEAR ME? >> Mayor Guajardo: YES, I CAN. >> ANDREA PUJOL, DISTRICT 2. I'M COMMENTING TODAY TO SHARE MY OPPOSITION BETWEEN THE DESAL PLANT AND SUPPORT OF AGENDA ITEM 19. I'M FEELING PRETTY HOPELESS RIGHT NOW. I'M NOT GOING TO LIE. I'M HOPELESS ABOUT HOW THE CITY IS BEING MANAGED. IT FEELS LIKE THE MAJORITY OF THE COUNCIL DOES NOT CARE ABOUT THE PEOPLE HERE. IT'S BEEN SHOWN THROUGH COUNTLESS ACTIONS WHERE Y'ALL REPEATEDLY PANDER HEAVY INDUSTRY, CUT FUNDING FROM POTENTIAL PROGRAMS, GOING AS FAR AS DESTROYING AN ENTIRE NEIGHBORHOOD AND CONTINUING TO HARASS THAT NEIGHBORHOOD, THE HILLCREST NEIGHBORHOOD. ANYWAYS, I SUPPORT AGENDA ITEM 19. PLEASE TAKE THAT DECISION MAKING POWER AWAY FROM PETER ZANONI WHO SAYS HE WANTS TO RUN OUR CITY LIKE A BUSINESS. IT'S DISGOING. IT'S DISGUSTING HOW HE OPERATES. HE DOESN'T CARE ABOUT US. PEOPLE ARE PAYING ATTENTION AND ARE TIRED NOT HAVING A SAY. PLEASE, AGAIN, APPROVE AGENDA ITEM 19. I ALSO WANT TO STATE MY OPPOSITION TO THE INNER HARBOR DESAL PLANT. I UNDERSTAND PEOPLE FEAR OF US RUNNING OUT OF THE WATER AND WHY FOLKS FEEL LIKE WE NEED IT BUT IT IS NOT FOR US. THIS PLANT IS 100% TO BRING IN MORE INDUSTRY, TO COME HERE AND BRING MORE OF INTO OUR CITYnd KEEP DESTROYING THE CITY. THE PLANT WILL NOT BE READY BEFORE WE RUN OUT OF WATER. THE PLANT WILL NOT BE READY FOR SO MANY MORE YEARS FROM NOW. SO IT'S NOT -- TO ME, IT'S NOT A GOOD SOLUTION RIGHT NOW. I ALSO THINK IT'S GOING TO DESTROY OUR BAY. WE DON'T KNOW THE IMPACT OF THE DESAL PLANT FULLY. AT THIS POINT, I JUST FEEL LIKE Y'ALL SOLD OUR WATER SO THAT WE COULD BE BACKED INTO A CORNER TO BUILD THIS PLANT, SO WE DON'T HAVE A CHOICE BUT TO BUILD THE STUPID PLANT. SO THAT'S ALL I HAVE TO SAY. THANK YOU. >> Mayor Guajardo: THANK YOU. MAYOR, THAT CONCLUDES THE PUBLIC COMMENT PERIOD. >> Mayor Guajardo: THANK YOU. WE WILL MOVE ON. GO INTO OUR CONSENT AGENDA ITEMS 2-16. DO ANY COUNCILMEMBERS HAVE ANY ITEMS TO PULL FROM THAT BATCH OF ITEMS? NUMBER 2, NUMBER 13. ANYONE ELSE? WE NEED TO PULL NUMBER 6 TO AMENDMENT IT. OKAY. ANYONE IN OUR AUDIENCE, WOULD YOU LIKE TO PULL ANY ITEM? OKAY. WITH THAT, I'LL ENTERTAIN A MOTION TO APPROVE CONSENT AGENDA WITH EXCEPTION OF ITEMS 2, 6, AND 13. WE HAVE A MOTION AND A SECOND. COUNCIL MEMBER VAUGHN, DID YOU HAVE A COMMENT? OKAY. PLEASE SUBMIT YOUR VOTE. OKAY. MOTION CARRIES. I BELIEVE STAFF WAS PULLING 2. LET'S DO THAT ONE FIRST. COUNCILMAN YOU DID, 2. I'M SORRY, NUMBER 2 IS AN ORDINANCE AMENDING THE ROADWAY MASTER PLAN MAP AND URBAN TRANSPORTATION PLAN MAP OF MOBILITY. MR. de laGARZA? >> MAYOR, COUNCIL, INTERIM ASSISTANT CITY MANAGER. TODAY I'M GOING TO COVER THE ITEM FOR THE MODIFICATIONS RELATED TO THE FUTURE OF MARABELLA AND KINGS LAKE WEST DEVELOPMENTS. WITH ME TODAY I ALSO HAVE OUR LEGAL OFFICE, BUCK, AND ALSO DEVELOPMENT SERVICES TO ANSWER ANY QUESTIONS THAT MIGHT COME UP REGARDING THE PROCESS THAT WAS BROUGHT UP LAST TIME. AND RENEE COUTURE HELPED US OUT ON THE PROCESS IF THAT COMES UP. SO TO RECAP FROM OUR LAST AMENDMENT THAT WAS PROPOSED AND VOTED ON, WE WENT AHEAD AND COUNCIL VOTED ON THE RECOMMENDATIONS FOR STREET NUMBER 1, AS YOU SEE ON THE SCREEN, TO BE AMENDED AS WELL AS STREET NUMBER 2 AND 3. SINCE THEN I'M GOING TO READ AN EXCERPT HERE ON JUNE 22nd, AN EMAIL THAT I RECEIVED FROM LONDON ISD TRUSTEE WAS SENT TO PUBLIC WORKS SO THAT WAS SENT TO ME. DISCUSSIONS AND THE EMAIL READ, DISCUSSIONS FROM MULTIPLE SCHOOL SITES IN THIS AREA BY LONDON ISD ARE ONGOING. ALSO STATED THAT REDUCTIONS COULD NEGATIVELY IMPACT LONDON'S ABILITY TO PURCHASE LAND FOR THESE SCHOOLS WITH THE UPDATED INFORMATION. AND SO WITH THAT NEW INFORMATION WE HAVE RECEIVED, THAT SHOWS THE POTENTIAL IMPACTS THAT ARE PROPOSED AMENDMENT COULD HAVE ON THE FUTURE OF WHAT LONDON ISZ PLANNING IS IN THAT AREA. AND SO I WOULD LIKE TO MODIFY MY RECOMMENDATION TO THE NEW RECOMMENDATION SHOWING UP ON THE PROPOSED AMENDMENT FOR THIS ITEM. AND THAT IS SHOWING ON THE SCREEN WHERE NUMBER 1, THAT RECOMMENDATION WILL STAY AS IS, TO CHANGE THAT STREET NUMBER 1 ON THE SCREEN TO A C-1 COLLECTOR. NUMBER 2 AND NUMBER 3 WILL STAY AS IS ON THE MASTER PLAN. AND NUMBER 4 STAYS AS IS ON THE MASTER PLAN. SO THIS TABLE HERE SUMMARIZES OUR NEW RECOMMENDATION. SO BASICALLY JUST KEEPING THAT FIRST ROW RECOMMENDATION IN PLAY. AND THEN THE OTHER ONES, BY AN AMENDMENT, REMAINING AS IS OR AS IS ON THE MASTER PLAN. SO THAT'S MY NEW STAFF RECOMMENDATION. >> Mayor Guajardo: OKAY. COUNCILMAN HERNANDEZ. >> Hernandez: GLAD I BROUGHT THIS UP, SOME ISSUES WITH THAT SCHOOL POSSIBLY BEING BUILT IN THAT AREA. SO I THINK THIS COULD BE MODIFIED AT A FUTURE TIME FRAME, IF NEED BE, DEPENDING ON WHERE THEY DECIDE TO ULTIMATELY PLACE THE SCHOOL, BUT I WAS CONCERNED THAT WE WOULD HAVE ISSUES IN TERMS OF MOBILITY IF WE HAD A SCHOOL AND WE DIDN'T HAVE THE INFRASTRUCTURE OR RIGHT OF WAY ASSOCIATED WITH IT. HOWEVER, IN THIS PROCESS I REALIZE THAT WE HAVE SOME DISCONNECTS WITH THE DESCRIPTION OF COLLECTORS AND SIZES AND STREETS AND REQUIREMENTS FOR RIGHT OF WAY. THEY'RE IN THE INFRASTRUCTURE DESIGN MANUAL AND NOT IN THE UDC. SO I THINK THE CONSTRUCTION OF THE ACTUAL ROAD SHOULD STILL BE IN THE INFRASTRUCTURE DESIGN MANUAL BUT THE ACTUAL DESCRIPTIONS OF THE RIGHT OF WAYS AND THE SIZES AND THEOF THE PAVEMENT AND ALL THAT SHOULD BE MIGRATED OVER TO THE UDC BECAUSE IN THE CONVERSATION I HAD WITH SOME FOLKS, THERE ARE SOME DESCRIPTIONS IN THE IDM THAT THEY WEREN'T FAMILIAR WITH. FOR EXAMPLE, WE HAVE A RESIDENTIAL COLLECTOR ROAD THAT I THINK THEY THOUGHT WAS RURAL COLLECTOR ROAD. WHICH I THINK WE NEED TO BE ALL ON THE SAME PAGE AND WE NEED TO BE WORKING FROM THE SAME DOCUMENT. I WILL BE BRINGING TO COUNCIL AND I'LL WORK WITH ENGINEERING AND DEVELOPMENT SERVICES TO BRING THAT OVER TO THE UDC WITH THE DESCRIPTIONS OF THE RIGHT OF WAY AND PAVEMENT WIDTH SO THAT WE'RE ALL ON THE SAME PAGE AND CAN BE REVIEWED BY PLANNING COMMISSION. BUT I THINK THIS PROCESS HAS TOLD ME THERE'S -- WE'RE NOT SPEAKING THE SAME LANGUAGE SOMETIMES. BUT I WILL AGREE WITH THIS. AND IF IT NEEDS TO BE MODIFIED IN THE FUTURE, ONCE MORE INFORMATION IS DETERMINED, WE'LL GO FORWARD WITH THAT. >> YES, SIR. THANK YOU. >> WITH THAT, I MAKE A MOTION TO APPROVE. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: I WANT TO REACH OUT TO LONDON ISD AND THANK THEM FOR THE NOVICE APPROACH TO WORK WITH FUTURE DEVELOPMENT. IT'S REFRESHING. AND WE HOPE OUR OTHER PARTNERS IN THE OTHER SCHOOL DISTRICTS HAVE THE SAME, YOU KNOW, FUTURE COMMUNICATIONS WITH US, BECAUSE WE'VE KIND OF GOTTEN PICKLES IN THE PAST AND THIS IS AHEAD OF THE CURVE. I JUST WANT TO REACH OUT AND SAY THANKS. >> OKAY. YES SIR. >> I'LL LET BUCK WALK Y'ALL THROUGH THE MECHANICS OF THE AMENDMENT. >> I WANT TO MAKE SURE COUNCIL NEED TO MAKE A -- FOR THE PREVIOUS IN ORDER NANCE. >> Mayor Guajardo: THE MOTION THAT MR. HERNANDEZ MADE IS A MOTION TO AMENDMENT AS PRESENTED BYPASS. >> WHAT IS THE MOTION? WHAT IS YOUR MOTION? >> Hernandez: THE MOTION FIRST AND THEN AMEND IT. SO WE'RE USING THE PREVIOUS MOTION FROM LAST WEEK. SO I'LL MAKE A MOTION TO AMENDMENT PER STAFF RECOMMENDATION. >> FOR CLARITY. YOU'RE GOING TO THE -- THE ORIGINAL. FOUR LANE. >> WE WERE. WE'RE ONLY MODIFYING ONE, ITEM 2, WHICH IS NUMBER 1 ON THE SCREEN. ONLY MODIFYING ONE ROAD IN THE TRANSPORTATION PLAN. SO THAT'S WHAT WE'RE APPROVING, THE MODIFICATION OF ROAD NUMBER 1 FROM C3 TO C1. IS THAT CORRECT? >> YES, SIR. AND NUMBER 2, 31 AND 4 STAY AS IS ON THE MASTER PLAN. >> Mayor Guajardo: OKAY. AND A MOTION AND A SECOND. OKAY. PLEASE SUBMIT YOUR VOTE. >> CAN WE DO THAT VOICE VOTE? >> Mayor Guajardo: SURE. ALL IN SAY FAVOR, SAY AYE. [AYES RESPOND] ANY OPPOSED, SAY NO. MOTION CARRIES. >> AND APPROVE IT AS AMENDED. >> Mayor Guajardo: MOTION AS AMENDED. >> HE MADE THAT AT THE BEGINNING. RIGHT NOW WE'RE JUST GOING TO VOTE ON IT. >> Mayor Guajardo: WE HAVE A SECOND. >> ALL RIGHT. OKAY. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. ITEM NUMBER 6 IS WE'RE MAKING A QUICK AMENDMENT AS WELL, ORDINANCE APPOINTING THE MUNICIPAL COURT JUDGES. >> YES, MA'AM. THE RECOMMENDATION IS TO REMOVE THE NAME OF ARNOLD McADAMS. HE'S A PART TIMER BUT HE IS NO LONGER INTERESTED IN THE POSITION. >> Mayor Guajardo: OKAY. DO WE HAVE A MOTION? >> MOTION. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. >> FOR THE FOR THE AMENDMENT. CAN WE DO A VOICE VOTE ON THE AMENDMENT? >> Mayor Guajardo: ALL IN FAVOR, SAY AYE. [AYES RESPOND] ANY OPPOSED SAY NO. THE MOTION CARRIES. >> APPROVE IT AS AMENDED, PLEASE. >> Mayor Guajardo: ALL IN FAVOR, SAY AYE AS AMENDMENTED. [AYES RESPOND] ANY OPPOSED? >> NO. >> Mayor Guajardo: ONE NO. THE MOTION CARRIES. AND THEN THE LAST ONE WAS ITEM NUMBER 13, RESOLUTION TO AUTHORIZE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AGREED ORDER. WHO PULLED THAT ONE. YOU. >> THEY TOLD US TO FIX THIS. CAN YOU TELL ME WHEN THIS STARTED AND WHAT IS IT THAT WE WERE DOING THAT THEY HAD TO TELL US TO FIX IT. SO IT WASN'T MAINTENANCE? WE WEREN'T MAINTAINING IT, WHAT WAS IT? >> YES, MA'AM. WATER SYSTEMS INFRASTRUCTURE. BACK IN 2021, THEY DID AN INSPECTION SHORTLY AFTER WINTER STORM URI CAME IN SO WE WERE STILL RECOVERING FROM SOME OF THE EFFECTS OF WINTER STORM URI BUT THE MAINTENANCE ITEMS INCLUDED WAS REALLY A RESULT OF DELAYS IN MAINTENANCE THAT OCCURRED AS PART OF THE CONSOLIDATION STUDY THAT HAPPENED IN 2016-2018 WHEN ALL MAINTENANCE ON ALL WASTEWATER PLANTS WAS DELAYED. SO WITH THIS DELAY, I THINK THIS -- THIS SHOWS THE IMPACT IT CAN REALLY HAVE TO OUR WASTEWATER TREATMENTS AND THE COSTS IT CAN HAVE TO THE RESIDENTS IF WE DELAY THESE MAINTENANCE ITEMS THROUGHOUT THE CITY. WHAT'S GOING ON NOW THOUGH IS WE'RE DOING ALL THE MAINTENANCE ITEMS ON ALL THE PLANTS AROUND THE ENTIRE CITY. IN ADDITION TO THE CONTRACTS WE HAVE AVAILABLE NOW THAT HAVE BEEN APPROVED RECENTLY FOR BLOWER, PUMPS, THINGS LIKE THAT, THAT WE CAN ENSURE THAT THIS KIND OF THING DOESN'T HAPPEN AGAIN. >> OKAY. THAT WAS MY CONCERN. I THOUGHT, WOW. THAT'S SOMETHING WE HAD TO HAVE DONE. THAT'S SCARY. DO YOU HAVE A SCHEDULE WHERE YOU SCHEDULE MAINTENANCE AND JUST GO BACK, A YEARLY THING? >> IT DEPENDS ON THE ITEM. WE HAVE SCHEDULED MAINTENANCE ON ALMOST ALL ITEM INSIDE THE PLANT. NOT ALL OF THEM ARE MEYNT MANS, IT'S ALMOST A CAPITAL IMPROVEMENT THAT HAS TO BE DONE WHERE LIKE THE SKIMMER ARMS, MECHANISMS INSIDE THE CLARIFIER HAVE TO SPECIFICALLY BE REP REPLACED. >> THANK YOU. MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: OKAY. COUNCILMAN HERNANDEZ, DID YOU HAVE A QUESTION? GO AHEAD. >> Hernandez: OKAY. AND IN TERMS OF PREVENTIVE MAINTENANCE YOU CAN ALSO SCHEDULE AN INSPECTION WITH REGARDS TO THAT. WAS THAT DONE FOR THIS? >> PRIOR TO 2021 I CAN'T SAY EXACTLY WHAT ALL THE SCHEDULED AND WHAT ALL WAS NOT SCHEDULED. WE DO TAKE DOWN CLARIFIERS, WE DO TAKE DOWN SYSTEMS FOR -- NORMALLY ON A BIANNUAL BASIS, EVERY SIX MONTHS, TO INSPECT THEM. PART OF THE ISSUE AT OSO WHICH IS BEING CORRECTED RIGHT NOW IS THE CAPACITY OF THE PLANT ALSO DIDN'T ALLOW A LOT OF THESE SYSTEMS TO BE TAKEN DOWN FOR INSPECTION BECAUSE YOU COULDN'T TAKE IT DOWN WITHOUT AFFECTING THE TREATMENT PROCESS. SO PART OF THIS NEW PROJECT IS EXPANDING THE TREATMENT CAPACITY OF THE PLANT, ALLOWING US TO TAKE SYSTEMS DOWN TO INSPECT THEM. >> Hernandez: AS I RECALL, THESE WERE THE RECTANGULAR CLARIFIERS? >> AERATION BASIN. SORRY RECTANGULAR. CLARIFIERS ARE ROUND. YES SIR. >> Hernandez: I DON'T RECALL THEM BEING ROUND. >> YES,. >> OSO. >> YES, OSO, RECTANGULAR CLARIFIERS WITH THE TRAVELING BRIDGE YES. >> Hernandez: SO SHOULD BE AN OPPORTUNITY TO, I GUESS, YOU DIDN'T HAVE -- ARE WE ADDING CLARIFIERS? >> WE'RE ADDING -- WE'RE NOT ADDING A CLARIFIER, WE'RE ADDING EQUIPMENT BUT WE'RE ADDING ANOTHER AERATION BASIN TO THE SYSTEM SO THAT WE CAN TAKE THE OTHERS DOWN TO INSPECT THEM. >> Hernandez: OKAY. ALL RIGHT. SO -- BUT I MEAN, EVEN IF YOU DON'T HAVE THAT THERE SHOULD BE SOME MECHANISM TO BE ABLE TO INSPECT THEM ON A REGULAR BASIS. >> YOU CAN INSPECT WHAT'S ABOVE GROUND. YOU CAN TAKE THEM DOWN. YOU DON'T WANT TO TAKE THEM DOWN ON A FREQUENT BASIS BECAUSE THAT AFFECTS YOUR TREATMENT PROCESS. >> Hernandez: I UNDERSTAND THAT. BUT I MEAN, YOU HAVE OPERATION TIMES WHERE YOU HAVE HIGHER FLOWS, LIKE DURING THE DAY, AND LOWER FLOWS AT NIGHT. >> YES, SIR. BUT THESE CAN'T BEDOWN TAKEN DOWN IN THAT SHORT OF TIME. >> Hernandez: NO? OKAY. I GUESS WE'RE GOING TO FIX THAT. >> YES, SIR, WE ARE. MOTION WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. I'M GOING TO JUMP OVER TO ITEM NUMBER 20 AND BRING THAT FORTH TO ACCOMMODATE OUR VISITING COMMISSIONER THAT'S WITH US TODAY. AND A HEALTH ISSUE THERE. THAT IS A DISCUSSION AND POSSIBLE ACTION REGARDING AN MOU BETWEEN THE CITY OF CORPUS CHRISTI AND SOUTH TEXAS WATER AUTHORITY, AS REQUESTED BY COUNCILMEMBERS VAUGHN, QUANTITY, CAN'TCANTU, AND HERNANDEZ. >> WE PUT IT ON THE AGENDA BECAUSE WE HAVEN'T HEARD ANYTHING ON THE MOU SO WE WANTED TO FOLLOW THROUGH AND MAKE SURE IT HAD BEEN DONE. >> Mayor Guajardo: WHO CAN GIVE US AN UPDATE ON THE MOU. >> WE CAN BRING JAY UP HERE BUT WE HAVE AN EXECUTED MOU WITH SOUTH TEXAS WATER, SO WE'RE READY TO MOVE FORWARD. >> WE HAVE OH COMMISSIONER MORRIS IN THE AUDIENCE, WOULD YOU LIKE TO COME SAY ANYTHING ABOUT THE PROCESS OR ANYTHING? >> Commissioner Morris: HI, MAYOR, COUNCIL, THANK YOU. REPRESENTING SOUTH TEXAS WATER AUTHORITY. WE ARE -- WE HAVE AN SIGNED MOU BETWEEN THE EXECUTIVES REPRESENTING THE STWA AND THE CITY OF CORPUS CHRISTI. SO THERE HAVE BEEN SOME POINTS THAT HAVE BEEN INCLUDED THAT WILL CREATE -- THAT HAVE CREATED THE FRAMEWORK TO MOVE FORWARD AND TO HAVE DISCUSSIONS TO SEE IF THIS IS A VIABLE PROJECT FOR BOTH OPERATIONS AS WE STATED BEFORE. STWA IS PURSUING AND MOVING FORWARD WITH BRACKISH DESAL PLANT. WE JUST DON'T KNOW WHAT THE SIZE WILL BE. CURRENTLY PROJECTED AT 3MGB BUT AFTER THE LAST VISIT HERE AND THE DIRECTION OF THE COUNCIL WE'RE LOOKING AT EXPLORING TO A LARGER AMOUNT. JUST SAY THE MOU, 28MGD, IT'S UP TO, I DON'T THINK THE WORDING IN THERE QUITE SAID UP TO 28MGD, AS FAR AS ONE OF THE TALKING POINTS, BUT THAT IS -- THAT WITH THE DAILY CAPACITY OF THE STWA IS 30MGD. BUT WE'RE MORE THAN HAPPY TO CONTINUE THESE DISCUSSIONS. WE ONCE AGAIN APPRECIATE THE WORK THAT THE CITY STAFF, MANAGEMENT HAVE PUT IN THEIR TIME AND EFFORT TO WORKING WITH US ON THIS IMPORTANT PROJECT FOR THE REGION, FOR RURAL COMMUNITIES, AND FOR THE CITY. BUT WE ARE READY TO CONTINUE THESE DISCUSSIONS. AND SO HERE JUST TO CONFIRM THAT, YES, WE PROVIDED A COPY, TOOK SOME TIME. THERE WAS A LOT OF DISCUSSION BETWEEN LEGAL ON BOTH SIDES, WANTED TO MAKE SURE EVERYTHING WAS WORKED OUT AND WHAT COULD BE RELEASED. WE THANK OUR PARTNERS AT SEVEN SEAS FOR HELPING SPEED UP THAT PROCESS. THAT COULD HAVE BEEN DELAYED WHICH THANKFULLY IT GOT TO YOU. WE PREFERRED A FEW DAYS EARLIER BUT AT LEAST IT WAS ABLE TO GET TO YOU, HOPEFULLY LAST EVENING. BUT WE ARE HERE TO ANSWER ANY QUESTIONS. OF COURSE THE SPECIFICS ARE WHAT WE'RE GOING TO WORK ON. SO IF YOU WANT, WE CAN COME BACK AT A LATER DATE OR JUST ALLOW TO GIVE YOU THOSE UPDATES. BUT WE'RE READY TO MOVE FORWARD. WE THANK Y'ALL FOR YOUR CONTINUED SUPPORT AND GUIDANCE ON THIS. WE LOOK FORWARD TO HELPING RESOLVE WATER ISSUES FOR OUR COMMUNITIES AND PERHAPS FOR THE LARGER REGION AS A WHOLE. >> Mayor Guajardo: WE APPRECIATE YOU GETTING THE MOU AND APPRECIATE YOU AND THE STAFF GETTING IT DONE. BOY, WE'RE ON A TIME FRAME NOW. I DIDN'T KNOW IF WE WERE GOING TO MAKE IT OR NOT. YOU WANTING TO TALK, TOO? >> SO GOOD AFTERNOON. AGAIN, I WANT TO THANK EACH AND EVERY ONE OF YOU FOR SUPPORTING THIS. THIS IS MONUMENTAL. LITERALLY MONDAY KNEW MAL FOR SOUTH TEXAS WATER AUTHORITY AND CORPUS CHRISTI AND THE SURROUNDING AREAS. THE DECISION YOU'RE GOING TO MAKE TODAY IS GOING TO REALLY AFFECT FOLKS FOR A LIFETIME. WHEN WE'RE LONG GONE THEY'RE GOING TO REAP THE BENEFITS FROM WHAT WE'RE DOING HERE TODAY. SO I WANT THANK YOU ENOUGH FOR MAKING THAT DECISION. I DO THINK I OWE YOU GUYS ONE MORE ANSWER. I GAVE A PRETTY THOROUGH PRESENTATION LAST WEEK AND ASKED IF THERE WERE ANY QUESTIONS. BUT I GUESS THERE WAS ONE QUESTION THAT WAS STILL MADE VIA A PODCAST THAT WAS OUT THERE. I THINK THE QUESTION WAS MADE BY MR. JEMALY HERE, MADE IT TO SOCIAL MEDIA AND MY COMMISSIONERS AND TO ME, HIS QUESTION WAS WHAT MY INTENTIONS WERE. WHY WAS THE COUNTY JUDGE INVOLVED IN THIS PROJECT. SO I LIKE TO BE TRANSPARENT SO I WANTED TO COME AND CLEAR THE WATER. THE -- I'M CONSIDER VEER COUNTY JUDGE, SO I REPRESENT MY TAXPAYERS. ONE THIS LARGE AND THIS IMPORTANT, I'M GOING TO BE 100% INVOLVED. I HELPED SPEARHEAD THIS PROJECT WITH SOUTH TEXT WATER AUTHORITY. AS A RETIRED OFFICER I FEEL THAT I REPRESENT ALL CITIZENS, NOT JUST THE COUNTY. THEY'RE GOING TO BENEFIT FROM THIS PROJECT. I BECAME INTIMATELY INVOLVED IN THIS PROJECT. THAT'S WHAT I HAVE TO GAIN. MY COMMUNITY, THEIR SAFETY. WE'RE GOING TO REFRESHEN BATHROOM AND BATHE LIKE WE DISCUSSED LAST WEEK. SURROUNDING PARTNERS ARE GOING TO BENEFIT FROM THIS. AND I THINK YOUR CITIZENS ARE GOING TO REALLY -- THEY'RE GOING TO OPEN THEIR EYES ON MONDAY MORNING AND REALIZE WHAT TRANSITION YOU GUYS HAVE DONE BECAUSE YOU GUYS HAVE REALLY MADE A POSITIVE DIFFERENCE. YOU'RE GOING TO MAKE A POSITIVE DIFFERENCE IN THE LIVES OF A LOT OF PEOPLE. LITERALLY SOLVING THE WATER PROBLEM ISSUES AND GIVING YOURSELF ENOUGH TIME TO EXPAND ON MORE RESOURCES IN THE FUTURE BECAUSE YOU'RE GOING TO NEED MORE RESOURCES IN THE FUTURE. IT'S OUR PLEASURE TO BE A GOOD PARTNER. I THINK THIS IS AN ALLIANCE THAT FOLKS ARE GOING TO SEE ALL OVER THE STATE OF TEXAS. I THINK WE'RE GOING TO FORM A BENCHMARK. I SPOKE TO SENATOR HOSSA JUST BEFORE GETTING HERE. HE SAID TO LET YOU ALL KNOW THAT WE HAVE HIS ABSOLUTE 100% SUPPORT ON THIS. WE'RE GOING TO SHOW THE STATE OF TEXAS EXACTLY WHAT NEEDS TO BE DONE WHEN IT COMES TO REGIONALIZATION, THAT'S WHERE THE FOCUS IS. I THINK THAT'S WHAT WE'VE DONE HERE TODAY. SO CONGRATULATIONS. THANK YOU VERY MUCH. >> Mayor Guajardo: THANK YOU, JUDGE. COUNCILMEMBER HERNANDEZ, DID YOU HAVE A QUESTION? >> Hernandez: I DID. I HAVE A QUESTION FOR DREW. >> Mayor Guajardo: FOR DREW. >> Hernandez: YEAH. SORRY. MR. MOLLY. >> CALL ME DREW, COUNCILMAN. GROWING I KNOW SOME OF THE >> Hernandez: SOME OF THE QUESTIONS YOU WERE ASKING FOR ON THE MOU, SPECIFIC TO THE DETAILS, HOW PRODUCTION, TCEQ PERMITS CONTRACTS WITH AP OR NAC, THOSE KIND OF THINGS. IS THIS NORMAL FOR CONTRACTS WITH THE CITY? >> NotMOLLY: I WOULD HAVE TO TEL YOU THAT PART OF THIS SHOULD PROBABLY BE ANSWERED BY OUR LEGAL TIME. THERE WERE LAWYERS INVOLVED TO PUT TOGETHER THIS MOU. >> Hernandez: NO, THE REASON I ASK THAT IS BECAUSE I'M WONDERING IF WE PROVIDE THIS INFORMATION TO OUR CUSTOMERS WHO BUY WATER FROM US AND PROVIDING THEM OUR ENERGY COSTS, OUR CONTRACTS CA WITH AP, HYDRO LOGL SURVEYS, IS THAT IMPORTANT FOR OUR CUSTOMERS, FOR US TO GIVE THAT INFORMATION TO THEM. >> Molly: ANY TIME WE GET INTO A CONTRACT, A TAKE OR PAY CONTRACT OF THIS MAGNITUDE, OVER 30 YEARS, BEFORE WE GET INTO A BUSINESS DEAL, THIS IS A BUSINESS TRANSACTION, I THINK WE WANT TO MAKE SURE WE CLEARLY UNDERSTAND WHAT IT IS THAT WE'RE BUYING. JUST UP UNTIL FRIDAY WE DIDN'T KNOW WHAT WAS THE AGREEMENT BETWEEN SOUTH TEXAS WATER AUTHORITY AND SEVEN SEAS. THAT WAS TO US FRIDAY NIGHT UNDER A CONFIDENTIALITY AGREEMENT. SO THERE'S A LOT OF INFORMATION THAT WE HAVE BEEN ASKING FOR AND WE GOT IT FRIDAY NIGHT. AND SO THERE'S GOING TO BE SOME WORK THAT IS GOING TO HAVE TO BE DONE OVER THE NEXT 45 DAYS TO EVALUATE THIS PROJECT AND I THINK THE GOOD NEWS IS, IS THAT WE HAVE THE INFORMATION THAT CAN LOOK AT AND ASK THE QUESTIONS THAT WE NEED TO ASK IN ORDER FOR THE COMMUNITY TO UNDERSTAND WHAT IS THIS PROJECT. I THINK TO THE POINT THAT THE COUNTY JUDGE JUST MADE, THEY SERVE A COMMUNITY IN CLAYBURGH AND OASIS COUNTY. IT'S A GREAT THING TO HAVE PARTNERSHIPS. WE BELIEVE IN WATER ALLIANCES AND WE'RE STRONGER WITH PARTNERSHIPS. >> Hernandez: I UNDERSTAND. >> Mayor Guajardo: COUNCILMAN, I'M SORRY. I THINK HE WANTED TO ADDRESS YOUR COMMENT AS WELL. >> YES. YOU'RE GETTING INTO THE REALM OF LEGAL QUESTIONS NOW U, SO LET M. THOSE VARIOUS ITEMS, ACTUALLY MOST OF THOSE CAN BE REQUESTED VIA REQUEST FOR INFORMATION OF THE CITY. SO, YES, THAT INFORMATION IS GENERALLY PUBLIC INFORMATION THAT PEOPLE CAN OBTAIN, INCLUDING THE U.S. CUSTOMERS OF U.S. CUSTOMERS OFTHE CITY. IT'S AVAILABLE. SHOULD WE BE ASKING THAT? YES, I THINK YOU'RE GOING TO BE ASKING US TO EVALUATE THIS PROPOSAL. YOU'RE GOING TO WANT TO KNOW, ARE THEY GOING TO SUCCEED IN WHAT THEY'RE DOING. WE'RE GOING TO BE IN A MULTI-YEAR CONTRACT IN WHICH WE ARE GOING TO BE DEPENDING ON THE LIKELIHOOD OF SUCCESS OF MULTIPLE ENTITIES. SOUTH TEXAS WATER AUTHORITY AND SEVEN SEAS AND THEIR ABILITY TO BRING IT TO GET WATER -- TO BRING IN THE WATER AND CONVEY IT VIA THE INFRASTRUCTURE THEY ARE PROO POSING TO CONVEY IT BY. YOU'RE GOING TO WANT TO KNOW, YOU'RE GOING TO ASK US, IS IT GOING TO -- WHAT IS THE LIKELIHOOD OF SUCCESS AND WHAT CONTRACTUAL PROVISIONS NEED TO BE PUT IN TO INCREASE THAT LIKELIHOOD OF SUCCESS. AND IF IT DOESN'T SUCCEED YOU'RE GOING TO BE ASKING US WHY DIDN'T STAFF ENSURE THAT IT WOULD SUCCEED WHEN THERE'S COST OVER-RUNS OR TIME OVERRUNS, YOU'RE GOING TO BE ASKING STAFF, WHY DIDN'T THIS SUCCEED. SO, YES, THESE QUESTIONS ARE COMPLETELY APPROPRIATE. >> Hernandez: GIANT HAVE AN I DIDN'T HAVE ANISSUE WITH THE E ASKING BUT IS THIS GOING TO SET A PRECEDENCE THAT THIS IS THE SAME INFORMATION WE PROVIDE TO OUR CUSTOMERS WHEN THEY ASK FOR IT. I ASSUMING THEY ARE SINCE YOU'RE SETTING THIS PRECEDENT. IT'S NOT JUST THE TCEQ PERMIT THAT IS ACCESSIBLE. WE NEED TO GO SEE -- THEY'LL NEED TO SEE EVERYTHING BEHIND THAT, INCLUDING ANY WATER PROJECTS THAT WE DO, I'M ASSUMING THAT WE'RE GOING TO PROVIDE THAT INFORMATION AS WELL? >> Risley: I HAVE NO REASON TO BELIEVE WE WOULDN'T DO THAT, ABSOLUTELY. IT WE WOULD PROVIDE IT. GROWING I'M ASSUMING THIS IS INFORMATION WE NEED FOR THE CONTRACT, WILL IT BE PART OF THE CONTRACT? >> R ISLEY: SOME OF THE INFORMATION MAY REQUIRE WE HANDLE SOFT OF THE RISKS THEY'LL INDICATES BY PUTTING RELEVANT PROVISIONS INTO CONTRACT OR CONTRACTS BETWEEN THE ENTITIES. >> Hernandez: OKAY. SO THAT GOES BACK TO THE OTHER SIDE. WE SELL WATER TO THEM. FOR ANY OF OUR CUSTOMERS WE'LL PROVIDE THOSE SAME REQUIREMENTS FOR RISK ABATEMENT TO PROTECT THEM AS WELL? >> Risley: NOT NECESSARILY. >> Hernandez: OKAY. WHAT'S GOOD FOR THE GOOSE IS NOT NECESSARILY GOOD FOR THE GANDER IS WHAT YOU'RE TELLING ME? >> Risley: WE'RE IN A DIFFERENT POSITION, WE'RE AN OPEN BOOK GOVERNMENT, GOVERNMENTAL ENTITY, LARGELY WE ARE WHAT YOU SEE. YOU GET WHAT YOU SEE. WHEN WE'RE DEALING WITH A PRIVATE ENTITY THAT'S NOT SUBJECT TO THE TEXAS PUBLIC INFORMATION ACT, WE HAVE TO DELVE INTO THAT INFORMATION BECAUSE THE RISKS THAT WE -- WE'RE PROVIDING WATER. WE HAVE A LONG TRACK RECORD OF PROVIDING WATER AND PROVIDING WATER RELIABLY. MANY OF THE ENTITIES WITH WHOM WE ARE NEGOTIATING DO NOT HAVE THAT TYPE OF LONG TRACK RECORD. THEREFORE, WE HAVE TO HANDLE THESE RISKS THROUGH CONTRACTUAL PROVISIONS AND TO KNOW WHAT KIND OF RISKS WE'RE DEALING WITH, WE HAVE TO ASK THESE QUESTIONS. >> Mayor Guajardo: THANK YOU, MR. RISLEY. >> Hernandez: TO CLOSE THIS OUT, YOU KNOW, IT'S BEEN ALWAYS MY POSITION TO TREAT PEOPLE FAIRLY. I WANT TO MAKE SURE WE'RE TREATING PEOPLE EQUALLY ACROSS THE BOARD. SOUTH TEXAS WATER AUTHORITY, WHICH IS AN AGREEMENT WE'RE GOING TO HAVE WITH THEM IS ANOTHER GOVERNMENT ENTITY. I THINK THERE'S -- THEY'VE BEEN AROUND FOR HOW MANY YEARS? SOUTH TEXAS WATER AUTHORITY? >> 83. >> Hernandez: 83 YEARS? >> NO, 1983. >> Hernandez: SINCE 1983, THEY'VE BEEN AROUND. '79? THAT'S A LONG TIME. SO I WANT TO MAKE SURE THAT WE'RE NOT DISPARAGING SOUTH TEXAS WATER AUTHORITY AS BEING LESS THAN SIMPLY BECAUSE THEY'RE A SMALLER GOVERNMENT ENTITY. AND SO WE'VE GOT TO TREAT PEOPLE FAIRLY. IS THAT... IS THAT FAIR ENOUGH? >> Risley: IF WE'RE NOT TREATING SOUTH TEXAS WATER AUTHORITY FAIRLY, I THINK IT'S UP TO THEM TO LET US KNOW AND THEY HAVEN'T TOLD US THAT THEY'RE BEING TREATED UNFAIRLY. >> Hernandez: WELL, I'M ALSO LETTING YOU KNOW, THANK YOU. >> Mayor Guajardo: COUNCIL MAN. >> FIRST OF ALL, THANK YOU. I WANT TO THANK -- THIS IS IMPORTANT. IT'S IMPORTANT WHEN WE CAN COME TOGETHER AND COLLABORATE. I THINK THIS IS THE FIRST OF SEVERAL COLLABORATIONS IN THE AREA BECAUSE WE, YOU KNOW, IT'S CAUSED US TO WAKE UP WHEN YOU'RE RUNNING OUT OF WATER, YOU'VE GOT TO THINK OF EVERYTHING YOU CAN DO. AND I KNOW, JUDGE, AS FAR AS JIM WELLS COUNTY AND IMPORTANCE OF THE KING RANCH AND THERE'S A LOT OF THINGS, FUTURE PIPELINES, WHATEVER, IN TERMS OF SERVICING THE AREA, THAT HAVE TO GO THROUGH YOUR COUNTY. SO I JUST WANT TO THANK YOU. I'M GLAD THAT WE GOT TO THIS POINT. I'M GLAD THAT WE WERE ABLE TO GET THIS MOU DONE AND I REALLY SUPPORT IT AND I HOPE THAT WE CAN CONTINUE TO WORK TOGETHER IN THE FUTURE. SO THANK YOU. AND I APPRECIATE YOU GUYS BEING HERE TODAY. >> Mayor Guajardo: COUNCILMAN PAXSON. >> Paxson: THANK YOU, MAYOR. I WANTED TO -- I'M SORRY? >> IS THERE A QUESTION FOR ME OR -- >> Paxson: NOT EXCLUSIVELY, BUT THANK YOU, DREW. I DO APPRECIATE LATE LAST NIGHT AND VERY EARLY THIS MORNING YOU GUYS BEING ABLE TO SEND OVER INFORMATION ON THE FINAL VERSION OF THIS DOCUMENT. AND I THINK COUNCILMAN HERNANDEZ ASKED A LOT OF THE QUESTIONS I HAD ABOUT SOME OF THE BULLET POINTS THAT WERE IN THERE. BUT TO ECHO WHAT WE HEARD JUST MOMENTS AGO FROM OUR PARTNER AND COUNTY JUDGE, I FEEL THAT A LOT OF COUNCILMEMBERS HERE WOULD ECHO MY SENTIMENT, I WOULD LIKE ANYONE THAT WEARS THE BADGE AND REPRESENTS THE CITY OF CORPUS CHRISTI TO MOVE FORWARD DOING BUSINESS, THAT IS INCLUSIVE AND MINDFUL OF OUR PARTNERS. WE'RE IN A TIME WHERE IT'S VERY IMPORTANT TO THIS COUNCIL AND THIS ORGANIZATION THAT WE RECOGNIZE THAT AND WE DO WORK TOGETHER. WATER IS A CRISIS FOR ALL OF US. I THINK THAT WE ALL NEED TO RECOGNIZE OUR EFFORTS AND CONTINUE THAT WORKING TOGETHER. AND KNOW WE'VE GOT CITY, COUNTY, AND NOW I SEE REPRESENTATIVE OF SENATOR HOSSA IS IN THE AUDIENCE AND TOE HAVE HIS SUPPORT BEHIND THIS PROJECT, I DON'T THINK I'M ALONE IN SAYING THE EXPECTATION IS THAT WE CONTINUE TO MOVE FORWARD RECOGNIZING THE IMPORTANCE OF THESE PARTNERSHIPS. AND THANK YOU ALL THAT'S HERE TODAY FOR PUTTING THE WORK IN, MAKING THIS A POSSIBILITY, BRINGING THIS TO US, AND ALLOWING US TO ENTER INTO THIS PARTNERSHIP AT THIS TIME. AND THEN MY NEXT -- MY ONLY QUESTION IS, NOW THAT WE ARE MOVING FORWARD ON THIS, I THINK THAT AS A STRONG POTENTIAL PROJECT, THIS MIGHT BE SOME GOOD NEWS FROM THE CITY OF CORPUS CHRISTI TO SHARE WITH ITS LISTENING AUDIENCE, AS A POTENTIAL VERY LARGE SOURCE OF WATER, COMPARABLE TO OUR OTHER EFFORTS OUT THERE AND PERHAPS THIS IS A GOOD QUESTION FOR MR. MARES. THANK YOU FOR BEING HERE. YOU SAID UP TO 28 WITH QUESTION MARK ON THE VERBIAGE, UP TO. I THINK WHEN WE TALKED LAST TIME THERE WAS A POTENTIAL OF THAT BEING ABOUT 30 ONCE WE'RE -- >> THE CAPACITY OF THE TRANSMISSION LINES IS 42-INCH TRANSMISSION LINE FROM COUNTY ROAD 32 TO KINGSVILLE. AND THAT CAPACITY IS BASICALLY RATED AT ROUGHLY 30MGD, BUT THE STWA RIGHT NOW TAKES ABOUT 2MGD A DAY, ROUGHLY. SO MINUS THAT, 28 WOULD BE THE BALANCE. RIGHT. SO THAT'S HOW WE CAME UP WITH THAT NUMBER. >> Paxson: WELL, I HOPE ALL THESE EFFORTS AND THIS MOU SYNDS THE MESSAGE THAT CORPUS WANTS A LOT OF WATER. SO I THINK YOU SAID THAT YOU WERE STILL IN DETERMINATION OF HOW MUCH WATER WITH YOU WERE GOING TO PRODUCE AND -- >> THAT'S PART OF WHAT THIS FRAMEWORK IS AND REALLY THAT'S WHAT WE AGREED TO, WHAT WE SIGNED OFF ON YESTERDAY, WAS JUST THE FRAMEWORK TO ALLOW BOTH BODY, BOTH ENTITIES TO CONTINUE TO WORK FORWARD AND WORK THROUGH THOSE DETAILS AND FIGURE OUT IS IT VIABLE FOR BOTH SIDES. SO MY EXPECTATION IS THAT WE'RE GOING TO PROVIDE EVERYTHING THAT IS NEEDED. WE ARE A SMALLER ENTITY BUT WE HAVE A GOOD EXTERNAL TEAM THAT HELPS SUPPORT US. AND IN THE END IT'S BETWEEN STW A AND CCW AND THE CITY OF CORPUS CHRISTI. OUR PARTNERS TO HELP PRODUCE THE WATER IS SEVEN SEAS. ALL DOCUMENTATION WITHIN REASON, I MEAN, THERE ARE SOME PUBLIC DOCUMENTS AND WE HAVE ONE WHO REPRESENTS US SO HOPEFULLY CHARLIE WILL KEEP ME IN LINE. THERE'S INFORMATION THAT, AS YOU KNOW, CAN'T NECESSARILY BE PROVIDED AT THAT MOMENT. BUT IT WILL. SO IT'S NOT LIKE THERE'S A PORTION OF INFORMATION THAT YOU WILL NEVER GET OR THAT WILL NEVER BE RELEASED TO THE PUBLIC. AS DOCUMENTS WORK THROUGH, YOU NECESSARILY CAN'T PROVIDE EVERYTHING AT THAT MOMENT BUT WE'RE AN OPEN BOOK. WE WILL PRESENT EVERYTHING THAT WE CAN DURING OUR MEETINGS AND OF COURSE TRANSLATE THAT BACK TO THE CITY SO THAT YOU CAN GET YOUR UPDATES SO THAT YOU KNOW WHERE WE STAND. SO IT'S BETWEEN PUBLIC REPRESENTITY AND PUBLIC ENTITY. SEVEN Y O. SEAS IS JUST HELPING US PRODUCE THAT WATER FROM DRISCOLL. OTHER THAN THAT, THAT SHOULDN'T BE MUCH OF A DISCONNECT. IT'S JUST WORKING RIGHT NOW TO GET THAT INFORMATION AND THANKS SEVEN SEAS, AS I MENTIONED EARLIER, TO HOME RELEASE THAT, TO HELP GET THAT FASTER BECAUSE THERE WAS SOME PROPRIETARY INFORMATION THAT WE UNDERSTAND THE TECHNIQUES OR THE WAY THAT THEY COME UP WITH SOME OF THE INFORMATION STILL NEEDS TO BE GUARDED TO A CERTAIN EXTENT. BUT WE EXPECT MOST IF NOT ALL OF IT WILL BE RELEASED WHEN THE TIME IS READY. YOU HAVE MOST OF THE INFORMATION THAT WE HAVE AT THIS POINT. YOU HAVE PRETTY MUCH PERCHING. >> Paxson: WE RECOGNIZE THAT. YES. >> WE GOT THAT MOU WORKED OUT BETWEEN THE ATTORNEY YESTERDAY. I GOAT IT, REVIEWED IT FOR ABOUT 30 MINUTES AND SENT IT BACK. AND WITHIN FIVE MINUTES OF SENDING IT OFF, TO THE CITY, RETURNED WITH A SICK URE ON BEHALF OF MR. ZANONI WITH MY CITY ON IT. THE CITY TURNED IT RIGHT AROUND AS SOON AS IT WAS DONE. QUICK PROCESS. IT WAS DONE BY 4:00, 4:30 AT THE LATEST AFTERNOON. THE OFFICIAL MOU WITH ALL THE SIGNATURES WERE COMPLETE. >> Paxson: I'M GLAD TO HEAR THAT. THANK YOU TO OUR TEAMS TO MAKE IT UPON AND THAT QUICK TURN AROUND. WHEN I LOOKED AT OUR FUTURE AND ALL OF OUR EFFORTS I'M GOING TO BOOKMARK THAT AS 30 MILLION GALLONS COMING DOWN THE LINE. THANK YOU. >> Mayor Guajardo: COUNCILMAN VAUGHN. >> DON'T FORGET ABOUT THE RIBBON CUTTING JULY 8th. >> Vaughn: I WANT TO SAY. THE PUBLIC DOESN'T KNOW, THIS IS A 9-0 VOTE, IT'S RARE UP HERE, BUT SOMETHING WE CAN ALL AGREED ON. WE WANT WATER. WE'RE IN A EMERGENCY SITUATION. THIS IS THE BEGINNING TO VET THIS PROJECT. AND SO THANK YOU SOUTH TEXAS WATER AND OUR STAFF FOR MOVING FORWARD WITH IT. AND THE COUNCIL FOR UNDERSTANDING WE NEED WATER. THANK YOU. >> Mayor Guajardo: THANK YOU. COUNCILWOMAN CAMPOS. >> Campos: THANK YOU. I THINK WE SAID IT ALL. I THINK THE 9-0 VOTE SPEAKS LOUD AND CLEAR THAT THIS IS A GOOD AGREEMENT. I THINK WE HAVE THE PLAYERS THAT WE NEED TO FULFILL THIS, THIS GREAT PROJECT THAT I THINK WE ALL ARE VERY, VERY GRATEFUL FOR. AND I JUST WANT TO EXTEND THIS GRATITUDE TO COUNCILMAN VAUGHN. I MEAN, WHEN SHE CAME ONBOARD, WHICH I KNOW THAT -- MY THING HAS ALWAYS BEEN THAT WE CAN DO BETTER. BUT THERE'S SOMETHING MORE TO DOING BETTER IS HOW ARE WE GOING TO DO IT. SO SHE HAS BEEN THE "HOW" AND I WILL SAY THIS PUBLICLY. I WANT TO SAY THANK YOU FOR LEADING THAT CHARGE. AND THANK YOU FOR THE REST OF US FOR JUST SEEING THE LIGHT AND BEING ABLE TO AGREE THAT THIS IS SOMETHING THAT WE CAN MOVE ON QUICKLY AND HOPEFULLY THIS IS SOMETHING THAT WE'LL SEE VERY QUICK. YOU KNOW, SO THANKS. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: I JUST LOOKING AT MY NOTES. WASN'T MR. HOTCHILD PART OF THE GROUP? MY FATHER IS FROM KINGSVILLE. MY MOTHER STILL LIVES THERE. MAYOR, ALWAYS GOOD TO BE IN YOUR PRESENCE. I WANT TO TELL YOU I OWE THE MAYOR A LOT BECAUSE CAROL AND I WAS IN A BIKE RIDE AND I LEFT HER AND SHE FELL AND BROKE THE BIKE AND THE MAYOR WAS THERE TO SAVE HER. SO SHE LOVES THE MAYOR. ALWAYS BEEN MAD AT ME. ALWAYS GOOD TO BE IN YOU'RE PRESENCE. I MADE SOME NOTES. JUDGE, BY THE WAY, I THINK IT'S MY FAULT. I THOUGHT YOU CHAIRED THE SOUTH TEXAS WATER AUTHORITY, SO I WAS OF COURSE OUT OF TOWN WHEN YOU LAST VISITED SO I WAS THE ONE THAT WAS KIND OF PRESSURING JUDY, LIKE, DREW, WHERE IS THE CHAIR OF THE BOARD. I UNDERSTAND YOU'RE THE JUDGE. TRUST ME. MY MOTHER UNDERSTANDS THAT. STILL LIVES THERE. BUT THAT WAS MY FAULT, GOING WHY IS THE JUDGE SPEAKING WHEN HE APPOINTS CERTAINLY BUT I WAS LOOKING FOR THE CHAIR OF THE BOARD. THAT'S MY FAULT. MY POINT IS, DON'T BE MAD AT DREW. MY POINT IS, DON'T BE MAD AT DREW. BE MAD AT ME. YOU WOULD, BY THE WAY, BE THE ONLY PERSON MAD AT ME TODAY, SO THAT'S THE GOOD NEWS. LOOK, I MADE SOME NOTES HERE. LOOK, I'M A COMPLETE YES TO THE MOU. I THINK SOME OF IT HAS TO BE -- WE'VE GOT TO KEEP YOU GUYS HONEST. SO I'M A YES TO AN MOU. BUT THAT DOESN'T MAKE ME A YES TO THE CONTRACT. I THINK HAT THAT'S HEALTHY. YOU'RE YOU'RE A YES TO THE MOU BUT NOT THE CONTRACT. SPECIAL THANKS TO DREW, JOHN, MILES. CHARLIE, ALWAYS GOOD TO BE IN YOUR PRESENCE, SIR. MASTER WATER GUY. I AGREE. NO STONE LEFT UNTURNED. NO STONE LEFT UNTURNED. SO WOULD SOMEBODY EXPLAIN TO ME, NOT TODAY, BUT SOME POINT. TWO MGD GOING SOUTH AND 28MGD COMING NORTH. WHAT WOULD THAT MEAN WITH THE 2? THAT WOULD AFFECT THE FINANCIALS. I HAD A FASCINATING CONVERSATION WITH THE LEADERS GOING, MARK, YOU WOULD BE AMAZED OF ANY QUESTIONS WE ASK OF ANY CONTRACT THAT WE ARE GOING TO BE IN HERE. I HAVE NO ISSUE WITH ANY INFORMATION YOU NEED. I HEARD YOUIC TAG -- I DIDN'T NECESSARILY UNDERSTAND WHY YOU CAN -- OPEN BOOK BUT NOT ALWAYS AN OPEN BOOK. MY LAST TWO STATEMENTS ARE. IF WE CAN INCLUDE THE MAINTENANCE RECORDS, I GUESS, IS THAT ALREADY -- I JUST SAW SOME OF THE MOU BUT I ASSUME IT WOULD INCLUDE THE MAINTENANCE RECORDS OF THE PIPELINE, IN ADDITION TO AN ASSESSMENT. OR IS THAT PART OF THE ASSESSMENT? >> THERE'S AN INTEGRITY SECTION. >> Scott: MAINTENANCE RECORDS WERE IMPORTANT TO ME. I GUESS OUR AGREEMENT, I WOULD BE INTERESTED AT SOME POINT TO UNDERSTAND YOU IS IN CHARGE OF WHAT SUCH THAT IF THERE IS ANY FAILURE IN THE FINANCIAL COMMITMENT AND THE PIPELINE AND WHO IS MAKING THE WATER, I WOULD SURE LIKE TO KNOW IT. THAT WILL WORK ITSELF OUT LATER, JUST WANTED YOU TO KNOW MY COMMENTS. THANK YOU FOR EVERYBODY WHO IS HERE. ALWAYS GOOD TO BE WITH MY KINGSVILLE NATIVES AND APPRECIATE Y'ALL FOR IT. >> Mayor Guajardo: COUNCILMAN QUANTITY. CAN'T CANTU. >> Cantu: AFTER THE MOU HOW MUCH LONGER TO GET THE CONTRACT AND LOOK AT RATES AND STUFF LIKE THAT? >> WHO WANTS TO ANSWER? >> AT THIS MOMENT QUESTION WANT TO MAKE SURE THAT THE COUNCIL SUPPORTS THIS AND AND, I MEAN, THIS IS SOMETHING THAT WE'RE GOING TO HAVE TO BEGIN MODALLY O DISCUSS. OUR PARTNERS AT SEVEN SEAS, IT'S BEING ABLE TO SCALE. THE INFORMATION DIRECTED TO US, IF YOU CAN CREATE BIGGER, THE COST PER THOUSAND GALLONS COULD DECREASE. SO THAT IS DEFINITELY ONE OF THE QUESTIONS WE'LL WORK OUT. I EXPECT ALL OF THE TECHNICAL PARTS OF THIS, ENGINEERING, AS COUNCILMAN SCOTT MENTIONED, AS FAR AS OUR TRANSMISSION LINE WITH ANOTHER TRANSMISSION LINE WOULD NEED TO BE INCLUDED OR CREATED, THAT IS ALL PART OF THE ENGINEERING THAT WILL BE DISCUSSED. SO ALL OF THESE TECHNICAL PARTS WILL BE WORKED OUT PRETTY QUICKLY. THIS IS A VERY AMBITIOUS WINDOW. BUT WE FEEL CONFIDENT BECAUSE WE'VE ALREADY BEEN DOWN THIS JOURNEY FOR A COUPLE YEARS NOW THAT WE HAVE MOST OF IT ANSWERED. AND SO WE HAVE OUR OWN TEAM AS WELL, OUR OWN ENGINEERING TEAM THAT WILL HELP GUIDE US WITH THAT. AND OF COURSE THEM HELPING US ON THE LEGAL END. WE'LL GET MOST OF THAT ANSWERED NOW. THE TIME FRAME WE'RE GOING TO HAVE TO BE ABLE TO SIT DOWN HOPEFULLY BY TOMORROW AT THE LATEST OR MAYBE THIS EVENING AND CREATE A TIME FRAME THAT WE CAN COME BACK AND REPORT TO BOTH BODIES, RIGHT, TO OUR BOARD AND OF COURSE TO THE COUNCIL AND TO THE COMMUNITY SO THEY UNDERSTAND KIND OF WHAT WE'RE TRYING TO RAY CHIEF AND WHEN WE'RE TRYING TO ACHIEVE IT BECAUSE THAT -- WE KNOW THAT'S GOING TO BE ONE OF THE BIGGEST QUESTIONS, IS THE COST, HOW DOES THAT WATER GET TRANSPORTED BETWEEN ONE SITE AND THE OTHER. THOSE ARE IMPORTANT QUESTIONS. >> I FORGET, WHAT'S THE TIME FRAME TO GET IT BUILT? >> WE ARE EXPECTING BY MID 2027 AT THE LATEST. >> Cantu: MID 2027. >> YES, SIR. >> Cantu: OKAY. PERFECT. I WARRANT TO THANK SEVEN SEAS, WE REALLY NEED WATER. LIKE MY COLLEAGUES LEAGUE NEXT DOOR, WE NEED MORE. AND SO APPRECIATE YOU GUYS WORKING ON THIS FAST. AND LOOKING OUT FORTUNITY. >> THANK YOU. THANK YOU, COUNCIL. >> Mayor Guajardo: THANK YOU. DID YOU HAVE SOMETHING ELSE, OR NO? >> YEAH. SINCE THAT QUESTION WAS GENERAL I WASN'T SURE EXACTLY WHICH OF US SHOULD ANSWER. I A SAY THAT THE DAY AFTER COUNCIL TOOK THE VOTE ON DIRECTING US TO EXECUTE THAT MOU, WE WERE HIRING PROFESSIONALS TO EVALUATE THIS TRANSACTION AND EVALUATE THE RISKS TO DETERMINE HOW TO DEAL WITH THE RISKS, DETERMINE WHAT TYPES OF CONTRACTS WE WERE GOING TO NEED TO BE EXECUTING BETWEEN THE ENTITIES. IT'S GOING TO BE A VERY COMPLEX SET OF DEALS. SO IT'S GONNA TAKE AT LEAST A FEW MONTHS, BUT WE HAVE BEEN DILIGENTLY HIRING THE PROFESSIONALS NEEDED TO EVALUATE THIS SERIES OF TRANSACTIONS. >> Mayor Guajardo: OKAY. THANK YOU. WE'RE GOING TO MOVE ON. BUT AS YOU ALL HEARD, THIS IS A GOOD THING. AND WE HAVE EVERYTHING DONE AND HANDED OVER TO OUR POTENTIAL PARTNERS. AND NOW JUST FOR CLARITY, NOW OUR TEAMS TOGETHER WORK ON THE DETAILS. THERE ARE NO DETAILS RIGHT NOW. SO THE MOU IS GOING TO SAY, WE AGREE TO COME TOGETHER, WE AGREE TO WORK, AND THANK YOU, CHARLIE IS NODDING HIS HEAD, WE AGREE TO COME TOGETHER AND MOVE FORWARD IN TRYING TO FIGURE OUT WHAT IS THE BEST FOR THE RIGHT PAYER, WHAT IS THE BEST FOR BRINGING MORE WATER INTO OUR PORTFOLIO WHILE BEING THE BEST THING FOR OUR RATE PAYER. SO THANK YOU VERY, VERY MUCH. SO WITH THAT, I DO WANT TO ASK IF ANYONE WOULD LIKE TO MAKE PUBLIC COMMENT. MS. ALDONYA, PLEASE COME UP. >> I DO WANT TO THANK YOU. NINE OF YOU AGREEING AT SOMETHING THAT WE REALLY NEED. SO I AM VERY, VERY PROUD OF THE FACT THAT YOU'RE MOVING FORWARD ON IT. WE NEED TO MAKE SURE WE DON'T GET THE NITTY-GRITTY THINGS GET IN THE WAY. MAKE SURE THAT YOU CLEAR AWAY THE SMALL LEGAL THINGS. DON'T LET THEM CONVOLUTE EVERYTHING. BUT LET'S GET IT MOVING FORWARD. THIS IS A GREAT OPPORTUNITY. AND A GREAT THING FOR MY NEIGHBORS TO BE DOING FOR OUR REGION. SO GO FORWARD AND DO THE RIGHT THING. >> Mayor Guajardo: THANK YOU. ANYONE ELSE? OKAY. WE'LL GO AHEAD AND CLOSE PUBLIC COMMENT. SO THANK YOU ALL FOR BEING HERE. WE APPRECIATE IT. I'M GOING TO GO AHEAD, AND WE'RE GOING TO GO BACK IN LINE AND TAKE ONE MORE ITEM AND THEN BREAK FOR LUNCH. ONE MORE ITEM IS ITEM SEVEN. A RESOLUTION FINDING THE AUTHORIZATION AND PURCHASE OF THE PROPERTIES BY THE CORPUS CHRISTI HOUSING AUTHORITY RELATED TO THE APARTMENT COMPLEXES OF OR MONDAY BAY, AZURE, CHURCHILL SQUARE, OCEAN PAMS APARTMENTS, SAND CASTLE, SAW GRASS, SOUTHLAKE RANCH, STONELEIGH APARTMENT, THE ICON, THE SUMMIT, THE VERANDA, TUSCANY BAY SOUTH, VILLAS OF OCEAN DRIVE, ARTS AT OCEAN DRIVE, CASPIAN APARTMENTS, GULF BREEZE, SHADOW BEND, BAY VISTA, BAY VISTA POINT, BAYPOINT, AND SO SOLANA VISTA VOID BY OPERATION OF LAW, AND FINDING THE RELATED MEMORANDUM OF UNDERSTANDINGS, GROUND LEASES, AND OPERATING AGREEMENTS ILLEGAL, REQUESTING THE CORPUS CHRISTI HOUSING AUTHORITY TO ACKNOWLEDGE THE FINDINGS HEREIN AND TO IMMEDIATELY TERMINATE THE VOICE/ILLEGAL LAND ACQUISITIONS, RELATED CONTRACTS, AND ACTIONS. >> MAKE A MOTION. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. AGAIN, THIS IS A RESOLUTION. SO PLEASE SUBMIT YOUR VOTE IF THERE IS NO OTHER DISCUSSION. GOOD POINT. I'M SO SORRY. I'M GOING TO ASK FOR PUBLIC COMMENT. IS THERE ANYONE WHO WOULD LIKE TO MAKE COMMENT ON ITEM NUMBER 17? DID YOU HAVE PUBLIC COMMENT? >> MY NAME IS GARY ALSUP, CEO OF CORPUS CHRISTI HOUSING AUTHORITY. THANK YOU FOR THE THE OPPORTUNITY TO SPEAK TODAY. THE FIRST THING THAT I WOULD LIKE TO MENTION IS THAT I APPRECIATE THE COMMENT I HEARD EARLIER TODAY ABOUT RECOGNIZING SMALLER GOVERNMENTS AND TREATING THEM FAIRLY AND UNDERSTANDING THEIR POSITION ON MATTERS. AS YOU KNOW, CORPUS CHRISTI HOUSING AUTHORITY IS AN INDEPENDENT UNIT OF GOVERNMENT. IT IS THE BOARD OF COMMISSIONERS IS APPOINTED BY THE MAYOR, BUT THAT IS DONE OUTSIDE OF THE CITY COUNCIL PROCESS. IT IS A AUTHORITY ESTABLISHED BY THE STATE STATUTE. I'M ALSO A LITTLE UNCLEAR AS WHY THIS HAS BEEN DETERMINED TO BE ILLEGAL. STATE STATUTES ARE VERY CLEAR INDICATING IT IS AN ILLEGAL ACTION BY THE HOUSING AUTHORITY. IN FACT, I'VE PASSED AROUND TODAY AN ARTICLE ABOUT A SISTER HOUSING AUTHORITY IN PLANO WHO HAS BEEN THROUGH A SIMILAR -- NOT EXACT BUT A VERY SPLORE CESS, UTILIZING A PUBLIC FINANCE CORPORATION IN ORDER TO ENACT A VERY SIMILAR DEAL. RECENTLY A JUDGE HAS MADE A DETERMINATION THAT NEITHER THE STATE NOR THE SCHOOL DISTRICT HAS STANDING TO CHALLENGE THE CONSTITUTIONALITY OF THE STATUTES UNDER WHICH THE HOUSING AUTHORITY ACQUIRED THOSE PROPERTIES. SO I DID WANT TO PROVIDE THAT INFORMATION. AND THE FINAL THING THAT I WISH TO BRING UP, AND I HESITATE TO BRING THIS UP, BUT I'M HEARING FROM MULTIPLE FOLKS COMMENTS AND RUMORS THAT I HOPE ARE NOT TRUE. AND THOSE RUMORS ARE ESSENTIALLY THAT THE CITY IS NOT CONCERNED ABOUT THE MONEY ISSUE OF THIS. THEY ARE CONCERNED THAT THOSE PEOPLE ARE BEING ALLOWED TO RESIDE IN NICE APARTMENTS IN THE NICER COMMUNITIES IN CORPUS CHRISTI. I HOPE THAT THAT IS NOT A TRUE STATEMENT, THAT ANYBODY HAS MADE OR THAT IS AN ELEMENT OF THE CONVERSATION BEING MADE IN THIS DETERMINATION. SO I JUST BRING THAT AS A MATTER OF I HOPE THAT'S NOT TRUE BUT I HEAR -- I'VE HEARD IT FROM SEVERAL SOURCES AT THIS POINT. IF THERE'S ANY QUESTIONS ABOUT THIS, I SEE A COUPLE OF LIGHTS FLASHING SO I WOULD BE GLAD TO ANSWER ANY QUESTIONING. >> Mayor Guajardo: ACTUALLY, DID YOU HAVE A QUESTION FOR HIM? OR JUST A STATEMENT? YEAH, WE HAVE STATEMENTS. PUBLIC COMMENT, SO THANK YOU FOR YOUR PUBLIC COMMENT. >> THANK YOU VERY MUCH. >> Mayor Guajardo: COUNCILMAN VAUGHN. >> Vaughn: YOU KNOW, THERE IS A DIFFERENCE BETWEEN BETWEEN I DON'T LIKE IT AND IT'S ILLEGAL. WE'RE NOT A COURTROOM. WE DON'T GET TO ME SIDE IF IT'S ILLEGAL. I'M NOT GOING TO SUPPORT THIS -- WELL, I DON'T KNOW IF WE VOTE CONSIDERATION, BUT I DON'T LIKE THAT LANGUAGE. I MEAN, I THINK WHAT HE SAID IS TRUE. WE HAD THREE PEOPLE THAT WERE APPOINTED ON THERE THAT OBVIOUSLY VOTED FOR WHAT HE REQUESTED. DO I LIKE IT? NO. IT SOUNDS LIKE A SCAM TO ME. BUT, IT'S A STATE STATUTE, WHATEVER HE DID, AND HE DID IT AND THERE'S PROBABLY SOME OTHERS THAT HAVE DONE IT, TOO. I DON'T LIKE IT. BUT I DON'T LIKE THE IDEA THAT WE'RE SAYING IT'S ILLEGAL. I DON'T KNOW HOW YOU'RE GOING TO PROVE THAT IT'S ILLEGAL. IT JUST LOOKS LIKE A FORM OF BULLYING AND I DON'T LIKE IT BECAUSE WE'VE BEEN BULLIED THIS WEEK BY THE CHAMBER AND THIS TO ME IS SORT OF THE SAME THING. I JUST DON'T LIKE THE WORDING. >> COULD YOU IDAHO OH YOU KNOW, THE INTENT OF THE RESOLUTION AND THE VERBIAGE. >> I DO RECOGNIZE THE CITY COUNCIL IS NOT A COURT OF LAW BUT I THINK THE VIOLATIONS ARE STATE LAW ARE -- EXHIBITS RESOLUTION ILLUSTRATE THAT. I THINK THE COMPLIANCE WITH THE OPENING MEETINGS ACT IS GLARANT AND I'M NOT THE ONLY ATTORNEY OR CITIZEN THAT HAS OBSERVED THAT. AND THEN THERE'S POTENTIAL BYLAW VIOLATIONS. AND THEN POTENTIAL CHAPTER 392 VIOLATIONS THAT ALSO ACCOMPANY IN THOSE EXHIBITS. SO I DON'T THINK IT'S ANY CRAFTY LEGAL ARGUMENT ON OUR SIDE. IT'S JUST IDENTIFYING KIND OF OBVIOUS VIOLATIONS OF STATE LAW. >> Mayor Guajardo: OKAY. SO YOU ALL HAVE -- I GUESS IN LOOKING INTO THIS LEGALLY, ARE SAYING THERE ARE MANY POTENTIAL -- >> RIGHT. BECAUSE OF THESE ILLEGALITIES, THE TRANSACTIONS SHOULD AVOID AND THE HOUSING AUTHORITY SHOULD TAKE ACTION. >> Mayor Guajardo: THAT'S WHAT THIS RESOLUTION IS DOING, IS TAKING ACTION AGAINST WHAT HAS BEEN -- >> IT'S REQUESTING THE HOUSING AUTHORITY TO TAKE ACTION TO THESE VIOLATIONS. >> Mayor Guajardo: THANK YOU. THANK YOU. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. WE JUST LAST WEEK CAME TOGETHER TELLING STAFF, YOU KNOW, WE'RE ASKING TO MOVE FORWARD WITH THIS MOU. BEFORE THAT, WE SENT A RESOLUTION TELLING OUR PARTNERS WITH OVG THAT THIS COUNCIL SUPPORTS THEM TO FIND THE BEST DEAL FOR THIS CITY, SO TO ME THIS ITEM IS US AS AN ENTITY OF THE CITY SAYING, IF YOU'RE DOING BUSINESS IN THE CITY, WE WANT IT TO BE IN THE BEST APPEARANCES, ABOVE BOARD, LOOKING OUT FOR THE INTENT BEHIND THE ORGANIZATION, THE INTENT OF THE BEST INTEREST OF OUR COMMUNITY. SO TO ME, THAT'S WHAT THIS RESOLUTION IS SAYING. I UNDERSTAND COUNCILWOMAN VAUGHN'S SENTIMENTS. WE'RE NOT A COURT OF LAW. THAT'S NOT OUR JOB OR OUR JURISDICTION. BUT IT MATTERS TO US. IT MATTERS TO US THAT PEOPLE WHO ARE DOING BUSINESS HERE, HOW IS THAT CONDUCTED. MY UNDERSTANDING, BECAUSE I HAD QUESTIONS WHEN THIS WAS BROUGHT UP, IT WAS A VERY PUBLIC ISSUE. MY UNDERSTANDING IS THAT A LOT OF THESE APARTMENTS PURCHASED WERE ALREADY, IF NOT AT MAX, VERY CLOSE TO MAX OCCUPIED. SO TO ME, MY QUESTION WAS, IF ALL OF THESE -- IF THESE REPORTS ARE BEING PURCHASED WITH THE INTENT OF OPENING UP HOUSING OPPORTUNITIES FOR PEOPLE WHO NEED THEM ACROSS A BROAD RANGE OF INCOMES AND ECONOMICS AND STORIES, HOW MANY OF THOSE IS IT ACTUALLY MEETING AND WHAT I WAS TOLD IS THAT IT'S ACTUALLY NOT. IT'S NOT PUSHING THE ENVELOPE. I'M HAPPY TO SUPPORT INITIATIVES THAT I'M HELP OUR COMMUNITY. BUT TO ME, THIS IS WHAT THAT STATEMENT IS SAYING, FROM THE CITY OF CORPUS CHRISTI. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. COUNCILMAN CANTU. >> Cantu: SO WHAT THEY DID IS LEGAL CORRECT? >> THE TRANSACTION, IF THEY HAD FOLLOWED THE LEGAL PROCESSES IT WOULD PROBABLY BE LEGAL. POTENTIALLY. BUT THEY FAILED TO -- SO THEY'RE SUBJECT TO THE OPEN MEETINGS ACT. THEY HAVE TO POST A CERTAIN AMOUNT OF TIME. THEY HAVE BYLAWS CEOs ARE REQUIRED TO COMPLY WITH. THEY HAVE CHAPTER 392 OF THE LOCAL GOVERNMENT CODE GOVERNS THEM AND LIES OUT THE PROCEDURES AND THEY FAILED TO MEET NOSE PROCEDURES AS WELL. >> Cantu: DID THE BOARD MEMBERS APPROVE THIS, CORRECT? FROM THE HOUSING AUTHORITY? >> RIGHT. >> Cantu: IT WASN'T GARY HIMSELF WHO GOT THIS APPROVED, IT WAS THE HOUSING AUTHORITY BOARD, CROCKET? >> THE BOARD ACTED WITHOUT AUTHORITY BECAUSE THE MEETINGS WERE NOT PROPERLY POSTED. >> Cantu: AND THIS RESOLUTION YOU WANT US TO VOTE ON, WHAT IS IT FOR AGAIN? >> PITTS BASICALLY ASKING THE HOUSING AUTHORITY TO REMEDIATE THE VOIDED ACTIONS. >> Cantu: BUT THEY DON'T HAVE TO LISTEN TO US, CORRECT? LIKE OVG 360. >> THEY'RE A PRIVATE COMPANY. >> Cantu: EXAMPLES, IT'S POINTLESS. >> I WOULDN'T SAY IT'S POINTLESS. RESOLUTIONS ARE DONE BY GOVERNMENT ENTITIES ALL THE TIME TO ASK OTHER GOVERNMENT ENTITIES TO HELP OR TAKE ACTION. >> Cantu: OKAY. >> I THINK I ALSO MIGHT ADD, THE HOUSING AUTHORITY BOARD HAS A NEW MAKEUP. SO THIS IS A COMPLETELY KIND OF NEW BOARD, NEW CITY COUNCIL, THEY WEREN'T PRIVY TO THE PREVIOUS STUFF SO THIS IS A NEW BOARD LOOKING AT IT WITH FRESH QUEUE EYES AND THIS GIVES THEM MORE CLARITY OF WHAT THE PRIOR ACTIONS WERE. >> Cantu: I'VE GOT A QUESTION. DID THE HOUSING AUTHORITY REACH OUT TO YOU GUYS BEFORE THEY DID THIS? >> NOT TO MY KNOWLEDGE. >> Cantu: NO? >> NO. >> AND ACTUALLY WE DID NOT HAVE -- BECAUSE OF THE OPEN MEETINGS VIOLATIONS AND THE FAILURE TO COMPLY WITH CHAPTER 392 WE DID NOT REALLY HAVE AN OPPORTUNITY TO OBJECT BEFORE THEY TOOK THEIR ACTIONS. THEY DID NOT -- THAT WOULD HAVE BEEN ONE WAY TO DEAL WITH THIS ISSUE, IS IF THEY HAD REACHED OUT AND SAID, LOOK, WE'RE GOING TO DO THIS. WE KNOW THAT IT WILL GREATLY IMPACT YOUR -- >> Cantu: DID YOU REACH OUT TO ANYBODY, BY CHANCE? CAN YOU TAKE, MAYOR? >> Mayor Guajardo: EXCUSE ME? >> Cantu: CAN GARY TALK? I HAVE A COUPLE OF QUESTIONS FOR HIM. >> IT'S UP TO THE MAYOR TO RECOGNIZE HIM. >> Mayor Guajardo: HE WAS ASKING. GO AHEAD. >> I WAS GOING TO ASK. DID YOU GET WITH ANY STAFF MEMBERS, COUNCIL, ANYBODY BEFORE ALL THIS HAPPENED? >> IF THE QUESTION IS DID WE DISCUSS THIS WITH THE CITY PRIOR TO TAKING ANY ACTION, THE ANSWER IS NO. DID WE POST THIS FOR PUBLIC -- FOR A PUBLIC MEETING, ABSOLUTELY YES. IT WAS POSTED. IT WAS DONE AT OPEN MEETING IN COMPLIANCE WITH ALL OF OUR REQUIREMENTS. I DON'T KNOW EXACTLY WHAT THEY'RE REFERRING TO IN TERMS OF A BYLAW VIOLATION. THE ONLY THING I CAN THINK OF IS THAT THE BYLAWS STATE THAT I CANNOT PURCHASE PUBLIC PROPERTY, REAL PROPERTY WITHOUT A R A RESOLUTION. SO AUTHORIZING. THE ACTUAL MOU AND ACTION THAT WAS FILED WAS A RESOLUTION OF THE CORPUS CHRISTI HOUSING AUTHORITY THAT GRANTED ME AUTHORITY TO ENTER INTO THESE MOUs, WHICH INCLUDED THE PURCHASE -- THE ULTIMATE PURCHASE OR THE ULTIMATE ACQUISITION OF THE PROPERTIES. WE DID NOT PURCHASE ANY OF THE PROPERTIES. THOSE WERE A FACTOR OF THE MOU THAT IN RECOGNITION OF PROVIDING 50% OF THE UNITS FOR AFFORDABLE HOUSING. THE PROPERTIES BECAME PROPERTIES OF THE HOUSING AUTHORITY. THERE WAS NO PURCHASE. THERE WAS NO ANYTHING LIKE THAT IN ORDER FOR THAT TO HAPPEN, SO THERE'S NO PURCHASE, THERE'S NO BONDS, THERE'S NO BORROWING OF MONEY. THERE IS NOTHING IN CHAPTER 92 THAT WOULD PRESENT -- PREVENT A HOUSING AUTHORITY FROM PARTNERING WITH A PRIVATE ENTITY TO PROVIDE HOUSING AND FOR THE OTHER SIDE OF THAT, FOR THE PROPERTIES BECOME PROPERTIES OF THE HOUSING AUTHORITY. >> I UNDERSTAND. >> SO NOT ONLY DOES THE CORPUS CHRISTI HOUSING AUTHORITY HAVE VERY ABLE ATTORNEYS, THESE ARE REVIEWED AT A STATE LEVEL WITH VERY HIGH-LEVEL, WELL-KNOWN ATTORNEYS ACROSS THE STATE THAT DO SIMILAR DEALS ACROSS THE STATE. MANY CITIES ARE DOING THIS, AND IT'S A -- >> I'VE BEEN DOING THIS RESEARCH AND LOT OF CITIES ARE DOING IT. I DON'T THINK IT'S RIGHT FOR THE TAXPAYER TO TAKE A LOSS ON THAT. THAT'S MY OPINION. BUT WHAT YOU GUYS ARE DOING IS LEGAL AND YOUR BOARD, I GOT APPOINTED BY -- WAS IT -- IT'S NOT COUNCIL. >> Mayor Guajardo: IT'S ME. >> Cantu: YOU. >> Mayor Guajardo: YES. >> Cantu: THAT'S NOT ON US. YOU KNOW. BUT I DON'T APPROVE OF IT. I REALLY DON'T. BUT I'M WITH CAROLYN, WE'RE NOT A COURT OF LAW. WE CAN'T JUDGE. I MEAN, I DON'T THINK WE SHOULD DO IT. >> I WOULD ALSO POINT OUT THAT THE CITY ITSELF RECOGNIZES THE GREAT NEED FOR WORKFORCE HOUSING IN OUR COMMUNITY, AND HAS, IN FACT, TAKEN ACTIONS TO ACQUIRE APARTMENT COMPLEXES THAT ARE GOING TO BE -- EXCUSE ME, HOTELS THAT ARE BEING TRANSITIONED TO WORKFORCE HOUSE. >> Mayor Guajardo: THANK YOU. WE APPRECIATE THAT. YES. ANYTHING ELSE, COUNCILMAN? COUNCILMAN HERNANDEZ. >> Hernandez: OKAY. I REMEMBER WHEN WE TALKED ABOUT THIS BEFORE AND I OPPOSED OBJECTIONS TO THE WORD "ILLEGAL" AND I EVEN HAD A CONVERSATION WITH OUR ATTORNEY ABOUT HOW WORDS MATTER. AND I DON'T AGREE WITH THIS PROCESS. YOU KNOW, WHAT THEY DID. AS A MATTER OF FACT, HAD THE OPPORTUNITY TO MEET WITH GARY AND HIS TEAM AND SAID HE NEEDED TO STOP. AND THE FAILURE TO COMMUNICATE WITH WHAT WAS HAPPENING TO US AND US HEARING 9th BACK, I HHEARING THIS BACK.I DIDN'T HEAL JUST RECENTLY. BUT THE WORD "ILLEGAL" I THOUGHT WAS INAPPROPRIATE AND I WOULD APPROVE THIS WITHOUT THAT TERM "ILLEGAL." JUST SAY INSTEAD IMMEDIATE TERMINATE AND VOID THE LAND ACQUISITION RELATED TO CONTRACTS U I THINK THE TERM "I'LL LET" IS INAPPROPRIATE. THERE'S A SECTION UNDER SECTION 4 THAT ALSO STATES THEMENT AGREES RELATED TO THE APARTMENT COMPLEXES ARE ILLEGAL. IT IS NOT UP FOR US TO DETERMINE THAT. IT IS US TOO CLAIM THAT IT IS, YOU KNOW, INAPPROPRIATE OR IS NOT -- WE BELIEVE IT IS IN COMPLIANCE WITH THE OPEN MEETINGS ACT. AND MAKE OUR CASE. BUT IF WE'RE SAYING IT'S ILLEGAL, I MEAN, WE'RE -- LIKE I SAID, I'M NOT THERE ARE SOMETIMES I THINK WE HAVE EXECUTIVE SESSIONS THAT I DON'T THINK ARE LEGAL. BUT THAT'S MY OPINION. GO AHEAD, MILES. >> Risley: I WOULD LIKE TO SAY -- AND I REALIZE THAT'S A HARSH WORD. BUT THIS REALLY COULD ENUP IN LITIGATION. THERE COULD BE A REQUEST. AND IN COMBINATION WITH OTHER TAXING ENTITIES, THERE REALLY COULD BE AN ACTION TO HAVE A JUDGE DECLARE THAT THESE ARE ILLEGAL AND A VIOLATION OF THE OPEN MEETINGS ACT? YES. YOU JUST DEFINED WHAT IS ILLEGAL. SO THAT'S A HARSH WORD. BUT THAT'S WHY WE'RE CAREFUL. THAT'S WHY YOU SEE SO MUCH DETAIL ON OUR AGENDAS IS BECAUSE WE ARE EXTRA CAREFUL TO AVOID COMMITTING ILLEGAL ACTS BY VIOLATING THE OPEN MEETINGS ACT. SO IT'S A VERY IMPORTANT ISSUE TO US AND WE BELIEVE IT NEEDS TO BE A VERY IMPORTANT ISSUE TO OTHERS. IF NOT FOR THE REPLACEMENT OF THE BOARD, IT MIGHT BE THAT MANY OF THESE PROBLEMS COULD BE REMEDIED BY THE BOARD RATIFYING THEM BUT THEY MAY BE UNREMEDIBLE. AND IT MIGHT BE THE SUBJECT OF LITIGATION AND IT MAY BE THAT WE WILL BE GOING TO ASK THE JUDGE TO DECLARE THESE ACTIONS TO BE ILLEGAL. BUT IF THE COUNCIL UP HERE DOESN'T SEE THIS AS ILLEGAL, THEN THE BASIS FOR US TO BE ABLE TO FILE A CIVIL SUIT TO DECLARE IT ILLEGAL WOULD BE ABSENT. >> Mayor Guajardo: COUNCILMAN HERNANDEZ, ANYTHING ELSE? >> Hernandez: NO. >> Mayor Guajardo: THANK YOU, SIR. COUNCILMAN ROY. >> Roy: I THINK IT'S IMPORTANT THAT COUNCIL SUPPORTS THIS SO I HAVE JUST A SUGGESTION. IT SEEMS, MILES, YOU'RE DIGGING IN ON THIS ILLEGAL THING BUT CAN WE ACTUALLY SAY MAYBE THE WORD THAT IT APPEARS ILLEGAL AND THAT FURTHER ACTION MAY BE TAKEN BY THE CITY? BECAUSE I THINK THAT'S REALLY WHAT MY FELLOW COUNCIL MEMBERS ARE SAYING. AND I THINK THE MESSAGE IS MORE IMPORTANT BUT I THINK, IF WE COULD AMEND THAT, I THINK THAT WOULD FIT YOUR NEEDS AND MEET WHAT COUNCIL'S NEEDS ARE. I SEE SOME HEADS SHAKING. CAN I MAKE A MOTION? >> Mayor Guajardo: YES. >> Roy: I WOULD LIKE TO MAKE A MOTION TO AMEND THAT. >> Mayor Guajardo: YOU WANT TO REPEAT YOUR AMENDMENT, FOR CLARITY? >> City Secretary: I HEARD THE AMENDMENT WAS TO -- IT APPEARS ILLEGAL AND FURTHER ACTION MAY BE REQUIRED BY THE CITY. >> Roy: YES. THAT'S CORRECT. >> Risley: AND JUST SO THAT WE USED THE CORRECT VERB TENSE, I'M TRYING TO GET THE GRAMMAR RIGHT. THE WORDS "ILLEGAL" WOULD BE REPLACED WITH THE WORDS APPEARS ILLEGAL OR APPARENTLY ILLEGAL IN THE ATTACHED RESOLUTION, AS APPROPRIATE. >> Roy: THAT'S FINE. >> Mayor Guajardo: REBECCA, WE DID HAVE A MOTION AND A SECOND ON THE FLOOR. CAN THAT COME OFF AND -- >> Ro >> City Secretary: WE NEEDED THAT FIRST. IT'S IN ORDER TO HAVE A MOTION TO AMEND. >> [OFF MIC] >> Mayor Guajardo: WE ARE TRYING TO GET THERE. COUNCILMAN, DID YOU HAVE ANOTHER QUESTION? >> Hernandez: I WANTED A POINT OF ORDER. THERE IS A SECTION, SECTION 4 THAT ALSO SAYS ILLEGAL. IT WOULD BE APPARENT ILLEGAL IN SECTION 4 AS WELL AS THE ACTUAL RESOLUTION LANGUAGE. THERE'S TWO SPOTS WHERE IT SAYS "ILLEGAL" -- WELL, THREE. >> City Secretary: WHEREVER IT APPEARS PUT "APPARENTLY." >> Mayor Guajardo: ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE PUBLIC COMMENT ON ITEM 17? >> SUSIE LUNA SALDANA. LET ME CLARIFY SOMETHING FOR YOU. WHAT YOU HEARD HERE, I WAS APPALLED. YOU KNOW, WHEN YOU SAY "THOSE PEOPLE," I'M TELLING YOU THAT IS A REAL CHEAP SHOT, FROM THE PREVIOUS SPEAKER. BECAUSE WHAT'S BEING DONE HERE IS TAKING MONEY FROM THE PEOPLE, THE TAXPAYERS. WE, THE TAXPAYERS, ARE THE ONES BEING MESSED UP BY THIS. WHETHER THEY DID IT ILLEGALLY BECAUSE IT WAS TURNED OVER TO SOMEONE ELSE AND THE COMMISSIONERS VOTED ON IT. DID THEY VOTE ON IT INDIVIDUALLY? THERE'S NO RECORD. DID THEY CALL FOR PUBLIC? THERE'S NO RECORD. I WENT BACK THROUGH THOSE THINGS AND FOUND OUT. SO WHAT YOU'RE HEARING IS NOT SOMETHING THAT IS TRUTHFUL. WHAT YOU'RE HEARING IS SOMEONE THAT IS TRYING TO CHANGE THINGS. AND LET ME TELL YOU WHO CAN CHANGE THINGS. MAYOR, YOU CAN. THERE'S TWO PEOPLE LEFT IN THERE THAT ARE RESPONSIBLE FOR THIS BECAUSE THREE HAVE BEEN CHANGED. THOSE PEOPLE NEED TO BE REMOVED AND REPLACED. FOR SOMEONE THAT CARES ABOUT THE POOR. BECAUSE I GUARANTEE YOU THAT THOSE APARTMENTS, WHEN A TEACHER APPLIED FOR THEM, THEY DIDN'T QUALIFY. WHEN A PARAPROFESSIONAL APPLIED, THEY DIDN'T QUALIFY. SO WHO ARE YOU DOING IT FOR? DON'T LET THE WOOL BE PULLED OVER YOUR EYES. TAKE ACTION AND TAKE IT RAPIDLY AND GET IT DONE AND REMOVE THOSE PEOPLE THAT ARE STILL THERE SO THAT WE CAN HAVE SOME HONEST COMMISSIONERS WORKING AT THAT HOUSING AUTHORITY THAT REALLY CARE ABOUT THE POOR. BECAUSE WE'VE GOT A WHOLE LIST OF PEOPLE, A WHOLE LIST OF PEOPLE WAITING TO GET APARTMENTS, WAITING TO GET SECTION 8, AND THEY'RE NOT GETTING IT. BUT LET ME TELL YOU THE CEO IS GETTING QUITE A BIT OF MONEY. >> Mayor Guajardo: THANK YOU, MS. SALDANA. RACHEL CABALLERO. >> RACHEL CABALLERO, D1 AND HERE AS PRESIDENT OF THE CORPUS CHRISTI TAXPAYERS ASSOCIATION THAT WAS ESTABLISHED IN 1979. I AM GOING TO SPEAK ABOUT THIS BECAUSE I LIVE IN ONE OF THE APARTMENT COMPLEXES THAT IS ON THIS LIST TODAY. AND WHAT IS REALLY HAPPENING IS THAT WE HAVE DEVELOPERS WHO ARE TRYING TO ESCAPE FROM THEIR TAX BURDENS AT THEIR LEVEL. INHERITING AND DOING THESE APARTMENT COMPLEXES, THE TWO, WHICH I KNOW THOROUGHLY FOR THE LAST FOUR YEARS, ARE FALLING APART BECAUSE WE HAVE NOT BEEN PAYING ATTENTION TO THIS COMMITTEE AND BECAUSE PEOPLE HAVE BEEN APPOINTED AND NO ONE WAS WATCHING THEIR APPOINTEES. WE ARE NOW IN A POSITION WHERE WE ARE LOSING TAXES AVAILABLE TO THIS COMMUNITY AS TAXPAYERS. THIS IS IRRESPONSIBLE FOR PEOPLE THAT ARE CLAIMING TO BE ON THE CLOCK 24/7. WITH A $7 MILLION DEFICIT ON OUR BUDGET, NONE OF THESE THINGS SHOULD BE HAPPENING. WE ARE LACKING IN LEADERSHIP AND THAT HAS GOT TO END. BECAUSE WE ARE LOSING MILLIONS OF TAX DOLLARS BECAUSE WE'RE BUSY TAKING PHOTOS AND WE'RE BUSY DOING MEDIA CIRCUITS. IT IS TIME THAT WE PUT THESE APPOINTEES IN CHECK AND WE DO NOT ALLOW THINGS LIKE THIS TO HAPPEN ANY LONGER. AND I'M NOT SURE HOW ELSE TO EXPLAIN THAT TO THE RIDICULING AND BULLYING THAT'S HAPPENING BEHIND OUR DAIS . NO ONE IN THIS COMMUNITY IS WORTH $750,000 A YEAR, ESPECIALLY A PUBLIC SERVANT. SO IT WOULD BEHOOVE THE PEOPLE INVOLVED IN THIS MESS TO EITHER RESIGN, RECUSE THEMSELVES, OR MAYBE IT'S TIME THAT THE COMMUNITY COMES INTO PLAY AND STARTS CALLING BACK ELECTED CORRUPT POLITICIANS. THANK YOU. >> Mayor Guajardo: THANK YOU, MS. CABALLERO. ANYONE ELSE? ALL RIGHT. WE'RE GOING TO GO AHEAD AND CLOSE PUBLIC COMMENT. I THINK WE HAVE OUR MOTION. >> City Secretary: THAT MOTION TO AMEND ON THE FLOOR STATED BY COUNCILMAN ROY? >> Mayor Guajardo: THAT'S CORRECT. PLEASE SUBMIT YOUR VOICE. ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. >> City Secretary: LET'S JUST VOTE AS AMENDED, PLEASE, ON THE RESOLUTION. READY? >> Mayor Guajardo: THE MOTION CARRIES. OKAY. SO WE ARE -- THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEMS 23 THROUGH 25 PER TEXAS GOVERNMENT CODE 551.071 AND 551.072. WE WILL RETURN. [EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] >> Mayor Guajardo: OKAY. WE'RE GOING TO RECONVENE OUR MEETING. COUNCILMAN ROY, I THINK WE HAVE A MOTION. >> Roy: WE HAVE A MOTION TO AUTHORIZE THE EXECUTION OF REAL ESTATE SALES CONTRACT WITH, ONE, TED DONALD COWAN, LOUIS J COWAN, WILLIAM A COWAN AND ANN COWEN CLEM TO PURCHASE APPROXIMATELY 9.26 ACRES OF PROPERTY ON LEOPARD STREET BETWEEN BENNY'S ROAD AND CORN PRODUCTS ROAD, WHICH MAY ALSO BE DESCRIBED AS HL KENNY TRACT 9.2581 ACRES OUT OF PARCEL NO. 2 AND ALL OF PARCEL NO. 4 IN THE AMOUNT OF 655,000 AND NUMBER TWO, WE HAVE LEE QUAWN TO PURCHASE -- LEE QUAWN TO PURCHASE 713 AIRLINE ROAD IN THE AMOUNT OF $375,000. >> Mayor Guajardo: OKAY. WE HAVE A MOTION. DO WE HAVE A SECOND. >> Campos: SECOND. >> Mayor Guajardo: WE HAVE A SECOND. ANY FURTHER DISCUSSION? PLEASE SUBMIT YOUR VOTE. OKAY. IF MTHE MOTION CARRIES. OKAY. AND THAT TAKES US TO -- WE ARE UNDER SECTION L, INDIVIDUAL CONSIDERATION ITEMS, ITEM NUMBER 18 IS A DISCUSSION AND POSSIBLE ACTION REGARDING OAK VIEW GROUP 360'S PERFORMANCE AND FINANCIAL REPORTING ASPIRATE FOR OF THE CONVENTION CENTER COMPLEX, INCLUDING POSSIBLE TERMINATION OF CONTRACT, RETURNING NAMING RIGHTS AUTHORITY TO THE CITY COUNCIL AND DIRECTING STAFF TO INITIATE A NEW BIDDING PROCESS FOR ARENA MANAGEMENT SERVICES AS REQUESTED BY COUNCILMEMBERS CANTU, VAUGHN AND HERNANDEZ. COUNCILMAN HERNANDEZ? >> Hernandez: MAYOR, CAN WE POSTPONE THIS ITEM UNTIL AFTER THE BRIEFING? >> WE CURRENTLY DON'T HAVE A BRIEFING READY. >> Mayor Guajardo: RIGHT, I THINK OUR -- GO AHEAD. I'M SORRY. >> THAT'S IT, MAYOR, WE DON'T HAVE A BRIEFING PREPARE. WE HAVE OVG GROUP HERE AND THEY'RE PREPARED TO ANSWER QUESTIONS. >> Hernandez: SO WE'RE NOT GOING TO HAVE ANY -- >> RIGHT. THIS WAS JUST PUT ON FRIDAY, IT DIDN'T ALLOW US TIME TO PREPARE A PRESENTATION. >> Mayor Guajardo: WE'RE GOING TO HEAR IT, THERE'S JUST NO BRIEFING. >> Hernandez: OKAY. >> Mayor Guajardo: SO, YEAH, WHO -- COUNCILMAN, ARE YOU GOING TO ASK -- >> Hernandez: I'LL GO AHEAD AND START. >> Mayor Guajardo: WHO WOULD LIKE TO COME UP? SURE. >> GOOD AFTERNOON COUNCIL, MAYOR, DANNY MALIS, AMERICAN BANK CENTER, AME I ALSO HAVE LOUIS WITH US AND GREG ODELL AND CLAUDIA OVARY OWR DISTRICT MANAGER. >> Hernandez: THIS WAS BROUGHT TO US BY COUNCILMAN CANTU BECAUSE HE HAD CONCERNS OVER THE SELECTION PROCESS WITH THE NAMING RIGHTS. AND HONKESTLY, COINCIDED WITH WHEN YOU MADE YOUR ANNOUNCEMENT YESTERDAY. SO -- BUT WE DON'T KNOW A NUMBER T, IT WI WAS JUST A SELECTION. CAN YOU TELL US WHAT THE OFFER WAS FROM HILLIARD LAW FIRM EXPWROO I WILL REFER TO ANSWER THOSE QUESTIONS. >> YESTERDAY WE ANNOUNCED THAT WE'RE MOVING INTO THE CONTRACT NEGOTIATION PHASE WITH HILLIARD LAW. THEIR OFFER THAT IS CURRENTLY ON THE TABLE IS ESSENTIALLY $13.3 MILLION OVER THE 10-YEAR TERM OF THE AGREEMENT. >> Hernandez: OKAY. SO THAT IS A SIGNIFICANT AMOUNT LESS THAN WHAT WAS PUBLICLY OFFERED BY THOMAS J. HENRY. SO YOU'RE ROUGHLY, WHAT IS IT, 5.7 MILLION IS WHAT WE'RE TALKING ABOUT IS THE DIFFERENCE? >> THE THOMAS J. HENRY OFFER WAS 20 OVER 10 YEARS. >> Hernandez: RIGHT, SO SEVEN. >> Campos: SEVEN. >> SIX AND CHANGE, YES. >> Hernandez: OKAY. AND I BELIEVE WE HAVE AN 80/20 SPLIT ON THE FUNDING THAT WE -- THAT YOU NEGOTIATE FOR THAT RIGHT? >> CORRECT. >> Hernandez: SO ROUGHLY OUR -- THE DIFFERENCE THERE, AND I'M DOING MATH IN MY HEAD, IS PROBABLY ABOUT $5.5 MILLION DIFFERENCE BET TO THE CITY BETWEEN THE OFFERS WHEN YOU ACCOUNT THE 80/20 SPLIT, SOMEWHERE IN THERE? >> CORRECT, JUST LOOKING AT THE OFFER ITSELF, CORRECT. >> Hernandez: OKAY. SO, YOU KNOW, I CAN UNDERSTAND IF YOU WERE WITHIN A MILLION DOLLARS OR SOMETHING, YOU CAN PROBABLY, YOU KNOW, JUSTIFY SOME BENEFITS HERE, BUT I'M CURIOUS AS TO HOW THE NEXUS OF THAT AMOUNT OF MONEY YOU CAN JUSTIFY FROM WALKING AWAY FROM THAT WOULD PROVIDE TO THE CITY. CAN YOU KIND OF GIVE US SOME EXPLANATION AS TO HOW YOU DETERMINE THAT? >> SURE. IT'S REALLY TWOFOLD. IT'S LOOKING AT THE -- >> Campos: CAN YOU MOVE A LITTLE CLOSER? >> IS THAT BETTER. >> Campos: YES. >> I THINK WE TALKED A COUPLE WEEKS AGO AT THE LAST SESSION, IT'S NOT JUST ABOUT THE ACTUAL DOLLARS IN THE OFFER OF THE AGREEMENT, IT'S THE IMPACT THAT THAT OVERALL PARTNERSHIP HAS AS WELL. SO WHEN WE LOOKED AT BOTH OFFERS THERE, WERE -- FIRST OFF, THE TWO PACKAGES THAT WERE PUT TOGETHER WERE NOT EQUAL IN TERMS OF THE ASSETS. THE THOMAS J. HENRY OFFER HAD, LET'S SAY, 50 DIFFERENT ELEMENTS WITHIN IT, THE HILLIARD OFFER HAS SIGNIFICANTLY LESS, IT WAS ABOUT 30 ASSETS. SO WHEN WE LOOKED AT THE FINANCIAL IMPACT OF US BEING ABLE TO GO AND SELL THOSE OTHER ADDITIONAL 20 ELEMENTS, THAT INCREASED THE HILLIARD OFFER BY ABOUT $400,000 PER YEAR. ON THE FLIP SIDE, WHEN WE LOOKED AT SOME OF THE IMPACT OF THE THOMAS J. HENRY OFFER, WE BELIEVED THROUGH CONVERSATIONS WITH PARTNERS THANK YOU TENANTS, THROUGH COMMUNITY, THAT THERE WAS GOING TO BE A NEGATIVE ILL PACT WITH SOME OF THOSE -- IMPACT WITH SOME OF THOSE -- WITH THAT OFFER. WE BELIEVE THERE COULD BE AS LITTLE AS 375,000 AND AS MUCH AS 895,000 THAT WOULD BE REMOVED FROM THE OVERALL PARTNERSHIP OF THE VENUE. SO WHEN YOU LOOK AT THE TOTAL IMPACTED REVENUE FROM THE TWO OFFERS, IT WAS ABOUT 17 AND CHANGE MILLION FOR HILLIARD WITH THE IMPACT AND SOMEWHERE BETWEEN 13 AND 16 WITH THE THOMAS J. HENRY OFFER. >> Hernandez: SO YOU'RE SAYING THAT THE COST FOR THE -- YOU KNOW, THE NUMBERS YOU JUST SHARED DIDN'T QUITE ADD TO THE AMOUNT THAT YOU'RE SAYING. SO, YOU KNOW, I WANT TO RESERVE JUDGMENT UNTIL I SEE THE COST ANALYSIS THAT YOU'VE DONE, BUT, YOU KNOW, ON THE FACE OF IT, OVERCOMING A -- AND JUST FROM THE CITY'S PERSPECTIVE A $5 MILLION DIFFERENCE, IT SEEMS VERY DIFFICULT TO BELIEVE, YOU KNOW -- >> SORRY TO INTERRUPT. >> Hernandez: IT'S DIFFICULT TO BELIEVE ON JUST THE NUMBERS YOU JUST GAVE. >> THE $5 MILLION OFFER DIFFERENCE IS OVER A 10-YEAR TERM, THAT EQUATES TO ROUGHLY $500,000 PER YEAR. SO IF WE'RE GOING TO SEE A POSITIVE INFLUX OF ADDITIONAL REVENUE FROM THE HILLIARD OFFER BY GOING OUT AND SELLING THREE, $400,000 MORE PER YEAR, THAT WILL MAKE UP THREE OR $4 MILLION OVER THE TERM, AND ON THE FLIP SIDE, IF WE SEE SPONSORS WALK AWAY OR EVENTS WALK AWAY, THAT WOULD BE A REDUCTION ON AN ANNUAL BASIS, SO THAT POTENTIAL LOSS OF 375,000 TO 895,000 WOULD BE PER YEAR AS WELL. >> Hernandez: SO YOU'RE SAYING LIKE THE BUCK DAY'S RODEO'S GOING TO GO AWAY IF WE -- >> AS AN EXAMPLE. YES, THERE WOULD BE SOME OF THOSE -- IN TALKING TO SPONSORS, THERE WERE PARTNERS WHO SAID THEY WOULD EITHER SERIOUSLY RECONSIDER EXTENDING THEIR PARTNERSHIPS OR THEY WOULD NO LONGER SUPPORT THE VENUE. >> Hernandez: CAN YOU SHARE THAT INFORMATION? >> THEY ASKED THAT THEY KEEP THEIR NAME OUT OF THE PUBLIC EYE, SO I -- >> Hernandez: THEN YOU CAN'T -- WE CAN'T TAKE THAT INTO CONSIDERATION IF THERE'S NO REAL NAME, BECAUSE THAT'S JUST HEARSAY, RIGHT? >> IT COULD BE. I HAVE BACKUP OF WHEN THOSE CONVERSATIONS HAPPENED AND WHEN WE HAD THOSE CONVERSATIONS TO INPUT THAT INFORMATION, BUT THEY HAVE SPECIFICALLY ASKED TO STAY OUT OF -- >> Hernandez: OKAY. SO YOU'RE PUTTING US IN A TOUGH POSITION HERE, RIGHT? >> I UNDERSTAND. >> Hernandez: BECAUSE ULTIMATELY THIS IS A PUBLIC ASSET RIGHT. >> Campos: YES. >> Hernandez: AND IT DOES NOT MAKE MONEY. OKAY? AND SO WHATEVER IS NOT DONE THROUGH REVENUES OR NAMING RIGHTS OR WHATEVER, EVERY OPPORTUNITY TO SEE REVENUES, THERE -- THAT MEANS IT HAS TO BE MADE UP FOR WITH TAXPAYER DOLLARS. SO I WANT TO MAKE SURE THAT, YOU KNOW, IF IT CAN'T JUST BE, YOU KNOW, AN UNNAMED SPONSOR IS GOING TO PULL OUT AND THAT MEANS X AMOUNT OF DOLLARS. THAT'S NOT -- THAT IS NOT TRANSPARENT IN THE SENSE OF WHAT WE HAVE TO COMMUNICATE TO THE PUBLIC, SO THAT IN ITSELF WOULD NOT BE AN ACCEPTABLE DESCRIPTION OF WHAT WE NEED. AND SO I WANT TO JUST MAKE VERY CLEAR THAT YOU'VE GOT TO COME TO US WITH CLARITY AS TO WHAT THAT DOLLAR AMOUNT IS, NOT SPECULATION. OKAY? AND, YOU KNOW, I WOULD BE VERY -- LIKE I SAID, THAT'S A VERY LARGE NEXUS OF A DOLLAR AMOUNT. YOU KNOW, I'M LOOKING AT OVER THE TERM OF THE 10 YEARS, BUT -- AND YOU CAN EVEN LOOK AT IT ON AN ANNUAL BASIS, BUT IT IS -- IT'S IMPORTANT THAT WE DO OUR BEST TO MAKE AS MUCH MONEY OUT OF THAT ASSET AS POSSIBLE SO IT DOESN'T FALL ON THE TAXPAYER. >> CORRECT. >> Hernandez: OKAY. SO I'LL RESERVE THE REST OF MY TIME. >> Mayor Guajardo: OKAY. COUNCILWOMAN CAMPOS? >> Campos: OKAY. I THOUGHT WE WERE ACTUALLY GOING TO GET SOME REAL ANSWERS TODAY. I THOUGHT THAT WE WERE GOING TO HEAR TRANSPARENCY FROM OVG. APPARENTLY, THAT'S NOT GOING TO HAPPEN. YOU'RE TELLING US THAT YOU MADE THIS DECISION ON THE SUPPOSEDLY PARTNERS THAT ARE WITH THE CITY WOULD BE WILLING TO PULL OUT, AND YET THEY DON'T WANT TO BE -- THEIR NAMES DON'T WANT TO BE REVEALED BUT THEY WANT US TO ACCEPT AS TAXPAYERS THAT WE SHOULD ACCEPT THIS -- THIS AGREEMENT. I THINK IT'S -- IT'S DISINGENUOUS REALLY, TO US, BECAUSE I'M A TAXPAYER, YOU KNOW, JUST -- AND I REPRESENT TAXTAXPAYERS. AND THIS SMELLS AND LOOKS BAD, SMELLS BAD, AND I'M GRATEFUL FOR, YOU KNOW, COUNCILMAN CANTU -- FOR THE TIMING. IT WAS WEIRD, BECAUSE HERE YOU HAD TWO YEARS TO WORK ON THIS, BUT AS SOON AS COUNCILMAN CANTU AND SOME OF OUR -- YOU KNOW, BESIDES ME PUTTING THIS ON THE AGENDA -- ON THE AGENDA ITEM, IT'S WHEN YOU STARTED, YOU KNOW, WORKING LIKE THIS [SNAPPING] I REALLY THOUGHT WE WERE GOING TO GET BETTER ANSWERS FROM OVG. BUT, YOU KNOW, NOW THAT WE HAVE THIS ON THE AGENDA ITEM OF, YOU KNOW, POSSIBLY DISCUSSING YOUR TERMINATION, THE TERMINATION OF THIS CONTRACT, YOU KNOW, MAYBE THAT'S WHERE WE'RE AT NOW. I REALLY WASN'T, BUT, YOU KNOW, JUST BASED ON YOUR NEGOTIATIONS WITH THIS, IT REALLY HAS TURNED MY ATTITUDE -- BECAUSE I WAS REALLY TRYING TO KEEP AN OPEN MIND, TRYING TO SAY, OKAY, YOU KNOW PROFESSIONALS YOU'VE DONE THIS TYPE OF, YOU KNOW, NEGOTIATIONS BEFORE. I THOUGHT THAT YOU WOULD BE ABLE TO HANDLE IT, BUT APPARENTLY NOT. YOU'RE BEING INFLUENCED BY SOME -- I DON'T KNOW -- UNKNOWN ENTITY THAT WE'RE APPARENTLY NOT GOING TO -- YOU'RE NOT GOING TO REVEAL. AND IT'S ASHAME. IT REALLY IS. AND BESIDES, I SAID, WHERE ARE THESE SUPPOSEDLY ENTITIES GOING TO GO? I MEAN, IT'S JUST SORT OF LIKE THE SAME EMPTY THREAT THAT WE GET FROM INDUSTRY. YOU KNOW, IF YOU DON'T AGREE TO THESE IDAS, WE'RE GOING TO PULL UP AND GO. NO, THEY'RE NOT. THEY'RE GOING TO STAY HERE. SO FOR ME, THOSE ARE EMPTY THREATS. AND IF TH THAT'S WHAT THEY'RE BASING THIS ON, SHAME ON THEM AND SHAME ON YOU. COUNCILMA N CANTU? >> Cantu: DID YOU GUYS REACH OUT TO THOMAS J. HENRY, THE VERY FIRST TIME FOR THE NAMING RIGHTS OF THE AMERICAN BANK CENTER? >> I BELIEVE THE VERY FIRST TIME, THEY HAD REACHED OUT TO US, BUT WE WERE IN THAT EXCLUSIVE WINDOW WITH AMERICAN BANK, SO WE COULD NOT RESPOND. ONCE THAT EXCLUSIVE PERIOD ENDED, WE REACHED -- WE COMMUNICATED WITH THOMAS J. HENRY. >> Cantu: SO YOU GUYS DISCUSSED THE NAMING RIGHTS OF THE AMERICAN BANK CENTER WITH THOMAS J. HENRY? >> WE DID. WITH A REPRESENTATIVE. >> Cantu: DID YOU GUYS GIVE A CONTRACT TO THOMAS JMED HEAVENRY FOR THE NAMING RIGHTS FOR THE AMERICAN BANK CENTER? >> WE DID NOT. >> Cantu: THERE WAS NO CONTRACT? >> NO. >> Cantu: BUT I PROVIDED DANNY WITH A CONTRACT THE LAST TIME HE WAS HERE ON COUNCIL, THERE TWUS A WAS A CONTRACT FOR LIKE $1.2 MILLION OR SOMETHING LIKE THAT, THAT YOU GUYS E-MAILED A CONTRACT TO THOMAS J. HENRY, MY UNDERSTANDING HE LOOKED OVER THE CONTRACT, YOU HAD A HIGHER PRICE, HE CAME BACK WITH A LOWER PRICE, YOU GUYS AGREED, AND THAT WAS THE CONTRACT THAT YOU GAVE TO THOMAS J. HENRY. SO IT WASN'T A CONTRACT? >> NO. >> Cantu: WHAT WAS THAT? >> AN EXECUTIVE SUMMARY, A PROPOSAL. >> Cantu: OKAY. BUT YOU GUYS DID SEND A PROPOSAL -- >> WE DID. . >> Cantu: -- TO THOMAS J. HENRY CORRECT? SO THEN YOUR REPRESENTATIVE FOR THE OVG AMERICAN BANK CENTER SAID IT LOOKS LIKE EVERYTHING'S GREAT. THEY WERE ALL EXCITED, THEY WERE GOING TO GET THE CONTRACT, UNDERSTANDING FROM YOUR PERSONNEL, AND THOMAS J. HENRY DID THIS BIG PRESS RELEASE BECAUSE WHO WOULDN'T BE EXCITED TO PUT THEIR NAME ON A BEAUTIFUL BUILDING IN CORPUS CHRISTI, AND SOMEBODY FROM YOUR OFFICE CALLED AND TOLD THEM, HEY, WE CAN'T DO THIS NO MORE, CITY STAFF TOLD US TO BACK AWAY. IS THAT TRUE? >> THAT IS INCORRECT. >> Cantu: INCORRECT. OKAY. SO YOU GUYS NEVER REACHED OUT TO THEM AND TOLD THEM, HEY, WE CAN'T DO IT BECAUSE THERE IS PEOPLE AT CITY HALL THAT DON'T WANT YOUR NAME ON THE BUILDING? >> I DON'T -- I DON'T BELIEVE SO NO. >> Cantu: NO? AND THEN WHENEVER WE DISCUSSED IT, OVG360 SAID WE HAVE AN ISSUE WITH THOMAS JMED HENRY BECAUSE HE'S A PERSONAL INJURY ATTORNEY, TALKED ABOUT MORALS, TALKED ABOUT REPUTATION, WHATEVER THE CASE IS. OKAY. OKAY, THAT'S UNDERSTANDING. WHATEVER. AND THEN YOU GUYS GOT ANOTHER BID FROM ANOTHER PERSONAL INJURY ATTORNEYS, WHICH I THINK HIGHLY OF THEM. I THINK BOB AND KATHERINE ARE GOOD PEOPLE. I THINK BOTH OF THEM ARE GREAT PEOPLE. I THINK BOTH OF THEM ARE GREAT LAW FIRMS, I THINK THEY DO GREAT WORK FOR THIS COMMUNITY. BUT Y'ALL TALKED ABOUT MORALS, WHAT'S THE DIFFERENCE BETWEEN THOMAS JME J. HEN T HENRY AND BOB AND KATHERINE? >> WE WERE NO LONGER CONCERNED ABOUT THE INJURY LAW CATEGORY. THAT WAS -- THAT WAS SOMETHING WE HAD BROUGHT UP SEVERAL MONTHS AGO THAT THIS WAS A CONCERN, AND WE LOOKED INTO IT FURTHER AND EXPRESSED SOME OF THOSE CONCERNS TO THOMAS J. HENHENRY AND TO HILLIARD AND THOSE CONCERNS FOR THE CATEGORY WERE NO LONGER AN ISSUE. WE HAVE SPONSORSHIPS WITH INJURY LAW FIRMS ALL OVER THE COUNTRY. MOST OF OUR VENUES HAVE MULTIPLE PROBABLY. >> Cantu: AND THEN YOU GUYS SAY, AND PEOPLE FROM THE COMMUNITY SAYS DON'T PICK THOMAS J. HEN TRI BECAUSE PEOPLE WON'T ADVERTISE WITH US FOR OUR BUC DAYS, AMERICAN BANK CENTER, WHATEVER THE CASE IS. AND COUNCILMAN HERNANDEZ ASKED YOU, WHO'S THAT MYSTERY PERSON? AND YOU GUYS CAN'T SAY WHO IT IS BECAUSE THEY DON'T WANT TO BE IN THE PUBLIC'S EYE. I MEAN, IT MAKES NO SENSE. AND WE ALL KNOW WHO IT IS. I MEAN, WE ALL KNOW IT'S ESTABLISHMENT. IT'S THE ESTABLISHMENT OF CORPUS CHRISTI WHO THINKS THEY RUN CORPUS CHRISTI STILL, AND, YOU KNOW, IT JUST -- IT'S RIDICULOUS BECAUSE OF THE FACT THAT ONCE AGAIN THE TAXPAYER OF CORPUS CHRISTI GETS SCREWED AGAIN BECAUSE WE'RE LEAVING $750,000 ON THE TABLE EVERY YEAR. AND THEN THERE'S SOME PEOPLE THAT SAY, WELL, WE CAN'T USE THAT MONEY JUST FOR -- ONLY FOR THE AMERICAN BANK CENTER. WELL, MY UNDERSTANDING IS -- I HAD A CONVERSATION WITH OUR CITY MANAGER, PETER, AND PETER SAID, YOU KNOW WHAT, ERIC? LET'S USE HALF THAT MONEY FOR PUBLIC SAFETY. THAT'S A LOT OF MONEY BRINGING TO THE TABLE. LET'S TRY TO USE HALF THE MONEY FOR PUBLIC SAFETY. IT'S A NO-BRAINER. WE NEED MORE OFFICERS AND FIREFIGHTERS, WE NEED MORE EQUIPMENT OR WHATEVER THE CASE IS. BUT TO TURN AWAY $750,000 A YEAR, AND MY PERSONAL OPINION, IT'S POLITICS. IT'S DIRTY POLITICS. AND THE CITY IS IN THE MIDDLE OF IT. THERE'S -- I FEEL THERE'S SOME COUNCILMEMBERS IN THE MIDDLE OF IT, TOO, BUT THAT'S MY OPINION. AND I THINK YOU GUYS GOT STUCK IN THE MIDDLE BECAUSE YOU GUYS REALLY WANTED THE $20 MILLION DEAL BECAUSE YOU GUYS MAKE MORE COMMISSION -- YOU GUYS ARE IN BUSINESS -- YOU'RE HERE TO MAKE MONEY, NOT LOSE MONEY, BUT I KNOW FOR A MINUTE THAT YOU GUYS ARE BEING PUSHED THE OTHER WAY. AND IT PU PUTS YOU GUYS IN A BAD POSITION, BECAUSE WHOEVER YOU'RE LISTENING TO, THEY ONLY HAVE ONE VOTE. THERE'S NINE PEOPLE UP HERE. I'LL COME BACK. COUNCILWO MAN PAXSON? >> Paxson: THANK YOU, MAYOR. YOU KNOW, I HAVE TO SAY, I APPRECIATE Y'ALL -- WHEN I SAY APPRECIATE, I MEAN I UNDERSTAND WITH AWARENESS THE POSITION THAT YOU GUYS ARE IN, AND WE ALL RECOGNIZE THAT THIS HAS BECOME A VERY HIGH-PROFILE POLITICALLY CHARGED TOPIC, AND THAT'S A FRUSTRATION. IT IS WHAT IT IS. I FEEL LIKE FOR -- FOR US AS A COUNCIL TO HAVE TAKEN THE TIME AND EFFORT AND ENERGY TO BRING YOU GUYS IN AND FOR US TO SIGN THIS -- A RESOLUTION THAT SAID, HEY, WE'RE HEARING THERE'S RUMORS OUT THERE THAT ARE TRYING TO STEER Y'ALL ONE WAY OR ANOTHER, WE'RE SAYING THAT IT'S THE WILL OF THIS COUNCIL THAT WE SUPPORT YOU, TAKE A GOOD DEAL. AND I STILL STAND BEHIND THAT. SO I FEEL FOR US TO HAVE TAKEN THE TIME AND THE ENERGY TO DO THAT, WHICH IT'S -- IT'S QUASI CITY GOVERNMENT. WE DID ABDICATE THAT AUTHORITY TO Y'ALL TO MAKE THAT DECISION, WE DIDN'T NEED TO SIT AND DELIBERATE OVER IT, BUT WE SAID THIS IS IMPORTANT BECAUSE THE COMMUNITY HAS REACHED OUT TO US. AND AS ELECTED THAT'S SOMETHING, YOU KNOW, WE HAVE TO TAKE ATTENTION TO WHEN THEY START TO REACH OUT. SO WE DID. WE TOOK TIME. HEY, IF THERE WAS A CALL, IF THERE KEANT A CALL, IF THERE'S PEOPLE IN THE BACK, IF THERE'S PEOPLE IN THE BACK, THAT DOESN'T MATTER BECAUSE THIS COUNCIL SAYS WE SUPPORT YOU. WE DID ALL THAT. AND THEN LAST NIGHT -- YOU KNOW, AND WE'VE BEEN GETTING THESE UPDATES, WE'RE GOING TO GET AN UPDATE, WE'RE GOING TO GET AN UPDATE, AND THEN LAST NIGHT IT WAS JUST KIND OF DROPPED. THEY DECIDED. AND IT'S -- IT'S THIS OTHER PERSON. AT FIRST I WAS A LITTLE DISAPPOINTED, BUT THEN I STOPPED AND I SAID, YOU KNOW WHAT? I DON'T KNOW. I DON'T KNOW WHAT THE OFFER IS OF THE OTHER -- YOU KNOW, OF THE COMPANY THAT WAS SELECTED AND FOR ME, I ALWAYS DO -- OR TRY TO ALWAYS DO FULL DUE DILIGENCE. I'M NOT GOING TO SPECULATE IF I DON'T KNOW. IT SOUNDS LIKE IT WAS THE SECOND HIGHEST BIDDER, BUT I'M GOING TO FIND OUT. MAYBE THERE WAS A FRACTIONAL DIFFERENCE. IT'S FINE. LET ME FIND OUT. BUT WITH THE INFORMATION PROVIDED HERE AND THE TOTAL THAT WAS SAID, TO ME THERE IS -- THERE'S A DIFFERENCE. I GET E-MAILS ALL THE TIME OR CALLS ALL THE TIME FROM CONSTITUENTS AND THEY'RE EITHER SAYING WE SUPPORT THIS ITEM OR WE HAVE A DIFFERENCE OF OPINION. THAT'S A DISCUSSION ON AN AGREEMENT OR A DISAGREEMENT. WHEN THERE'S ENTITIES THAT -- THAT TRY TO SUPERIMPOSE CONTROL OF A SITUATION -- AND THAT SEEMS TO BE A TOPIC TODAY -- IF WE DON'T LIKE YOUR DECISION, SO WHAT WE'RE GOING TO ACTUALLY DO IS TRY TO TIE YOUR HANDS INTO A DIRECTION. I DON'T LIKE THAT. I DON'T LIKE YOU BEING IN THAT POSITION BECAUSE YOU'RE SUPPOSED TO BE YOU'RE ZERO BUSINESS PARTNER, YOU KNOW? WE'RE DOING BUSINESS HERE, WE SHOOK HANDS AND SAID YOU GO DO BUSINESS THERE AND WE TRUST -- OR WE WANT TO TRUST THAT WHAT YOU'RE DOING, YOU'RE THINKING ABOUT THE CITY AS A WHOLE. EVERYTHING I DO AS OVG REFLECTS ON THE CITY BECAUSE WHAT HAPPENS TO ME, HAPPENS TO THEM. I DON'T KNOW, AND CITY STAFF, MAYBE YOU CAN CORRECT ME, WE HAD A PRESENTATION FROM OVG A COUPLE MONTHS AGO, THERE WAS ISSUES WITH THE FINANCIALS. I CAN'T -- I DON'T HAVE IT IN FRONT OF ME, I COULDN'T FIND IT. I DON'T KNOW THAT WE EVER RECEIVED THE CORRECTED DOCUMENT ON THE FINANCIALS. DID WE GET THEM? >> [OFF MIC] >> Paxson: OKAY. I DON'T KNOW THAT WE DID. I'VE BEEN TOLD THAT AS OF RIGHT NOW THE OPERATION SIDES ARE IN THE BLACK, WHICH MY HAT'S OFF TO YOU. THAT'S TOUGH WITH A CONVENTION CENTER. THAT'S INCREDIBLE. BUT I HAVEN'T SEEN IT WITH MY EYES. AND SO THAT MAKES THIS THAT MUCH -- A LITTLE BIT MORE DIFFICULT TO ME, BECAUSE I MEAN, I WANT TO -- ALL RIGHT, YOU'RE TELLING ME IT'S IN THE BLACK COOL. COULD I SEE IT? AND NOW MONTHS LATER, STILL HAVEN'T SEEN IT. I WOULD LOVE TO. THAT WAS MY NEXT THING, LET ME OPEN THE BOOK, LET ME SEE WHAT WE'RE LOOKING AT, WHAT'S OUR CURRENT STANDING? AND I DON'T -- I DON'T HAVE THOSE ANSWERS. SO NOW I'M SAYING, ALL RIGHT, WE JUST LEFT ALMOST $7 MILLION SITTING THERE. DID IT WASH OUT WITH OTHER POTENTIAL SPONSORS AND SHOWS? MAYBE. BUT ALSO MAYBE NOT. MAYBE THE PEOPLE THAT WOULD HAVE GU WALKED AWAY WALKED AWAY, BUT MAYBE NOT. BIRD IN THE HAND IS WORTH TWO IN THE BUSH, THAT OLD SAYING, THAT'S KIND OF WHERE I'M AT ON THAT. BUT I'M CURIOUS, DOES THE HILLIARD LAW FIRM DO ANY WORK WITH OVG IN OTHER LOCATIONS OR CAPACITIES? >> THEY DO NOT. >> Paxson: ALL RIGHT. THAT'S THE BIG THING TO ME IS -- >> SORRY, ONE EXCEPTION, THEY HAVE BEEN A SUITE HOLDER AT THIS VENUE FOR THE LAST SEVERAL YEARS. SO THEY HAVE BEEN A PARTNER HERE. >> Paxson: AND I'M GOING TO ECHO WHAT COUNCILMAN CANTU SAID. I HAVE NOTHING AGAINST THEM. I THINK BOTH FIRMS OFFER -- [LAPSE IN AUDIO] -- AT THE END OF THE DAY, EVERYTHING WE'RE ACQUIRING ALLOWS US TO ALLOCATE FUNDING IN ORE TH PLACES AND IT'S ALL TAX DOLLARS. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. COUNCILMAN BARRERA? >> Barrera: FIRST OF ALL, I'M SORRY THAT YOU'RE SUBJECTED TO SPECULATION AND ACCUSATIONS. I JUST DON'T THINK THAT'S RIGHT. AND I APPRECIATE AT HOW DIPLOMATICALLY YOU'RE HANDLING IT. I THINK THAT HAS TO BE COMMENDED, BECAUSE WE'VE PUT YOU IN A DIFFICULT POSITION. YOU KNOW, I'VE OBVIOUSLY BEEN VERY VOCAL ABOUT MY OPINION, YOU KNOW, AND -- BUT I DON'T THINK I'VE EVER MENTIONED THAT MAKING ADJUSTMENT TO YOUR CONTRACT, YOU KNOW, AS TO TRY AND MANIPULATE THE DIRECTION OF THE ORGANIZATION -- OF THE PROFESSIONALS. HOW MANY OF THESE NEGOTIATIONS HAVE YOU DONE? >> WE'VE SIGNED 36 NAME RIGHTS PARTNERS SINCE 2019, AND THAT'S JUST THE ACTUAL FINAL PARTNER, THAT'S NOT EVERYONE WHO WAS INCLUDED IN THE NEGOTIATIONS, SO HUNDREDS. >> Barrera: HUNDREDS. OKAY. BUT YOU'VE SIGNED 39 OF THEM? >> CORRECT. >> Barrera: 36. 36. AND YOU KEEP -- IT KEEPS GETTING THROWN AT YOU THAT -- COULD YOU PUT THE TIMER UP, SO I CAN SEE IT? THANK YOU. WHAT IS IT -- IT KEEPS GETTING THROWN AT YOU THAT THIS WENT ON FOR TWO YEARS, KIND OF RE-EXPLAIN THAT PROCESS. I KNOW YOU NEGOTIATED WITH THE CURRENT PARTNER AND, YOU KNOW -- IF YOU COULD? >> SURE. THE CONTRACT WITH AMERICAN BANK FOR NAMING RIGHTS HAD AN EXCLUSIVE WINDOW WHERE WE COULD ONLY NEGOTIATE WITH THEM. THAT WAS A SIX-MONTH PERIOD, 180 DAYS. ONCE WE WERE THROUGH THAT 180 DAYS, AMERICAN BANK ASKED FOR AN EXTENSION, WHICH WE GAVE THEM. THAT TOOK US THROUGH TILL MIDDLE OF MAY 2024. SO THAT WAS WHEN -- ONCE THAT PERIOD ENDED, THAT'S WHEN WE STARTED ESSENTIALLY OUR PUBLIC OUTREACH IN TERMS OF OTHER PARTNERS. ONCE AMERICAN BANK HAD SAID THEY WERE NOT INTERESTED IN THE NAMING RIGHTS, WE SORT OF WENT THROUGH THE PREDICTABLE CATEGORIES OF WHO SHOULD BE THE NAMING RIGHTS PARTNER, AND THAT GENERALLY TAKES BETWEEN A YEAR AND A YEAR AND A HALF TO SECURE A NEW NAMING RIGHTS PARTNER. SO AS OF TODAY, WE'RE ABOUT 13 MONTHS INTO THAT PROCESS. >> Barrera: OKAY. AND THAT'S TYPICAL RIGHT? >> CORRECT. >> Barrera: YEAH, TYPICAL. SO I THINK THAT'S ONE THING, WE'RE NOT THE PROFESSIONALS, SO WE'RE LOOKING FOR YOU DIRECTION. AND THEN HOW MANY VENUES DO YOU MANAGE? >> WE MANAGE -- AND I'M SORRY, RESTATE, I'M GREG ODELL WITH OVG. SO WE MANAGE JUST ON THE VENUE MANAGEMEN MANAGEMENT SIDE ALONE 200 VENUES AND THEN OVER 400 BEVERAGE AND FOOD VENUES AS WELL. >> Barrera: EVEN THOUGH THERE'S BEEN SOMETHING IN THE NEWS ABOUT TWO OR THREE PROPERTIES, THAT'S WHATEVER HAPPENS, THERE'S ALWAYS ACCUSATIONS, JUST LIKE THE ACCUSATIONS THAT WE'RE MAKING HERE, YOU KNOW. AND MY QUESTION NOW IS FOR HEATHER. SO HEATHER, HOW -- OR IT COULD BE FOR LIAM, I KNOW -- BUT SO PRIOR TO THEIR ARRIVAL, WHAT WAS THE ANNUAL REVENUE THAT -- FROM THE AMERICAN BANK CENTER. >> Hulbert: I DON'T -- GO AHEAD. >> IT WAS $330,000 IN SPONSORSHIP AND SUITE REVENUE PRIOR TO OVG'S -- >> Barrera: AND HOW MUCH IS IT NOW? >> WE ARE AT $1.3 MILLION IN CHANGE LAST YEAR. >> Barrera: SO THANK YOU -- >> SO FOUR TIMES -- >> Barrera: THANK YOU VERY MUCH FOR THAT. THANK YOU VERY MUCH FOR THAT. HOW -- HOW ABOUT DO YOU HAVE ANY INFORMATION AS TO HOW MUCH MORE -- I GUESS VISITS OR PARTICIPANTS -- >> YEAH, I CAN SPEAK TO IT. SO ON AVERAGE, THE TOTAL VISITS PRIOR TO OUR GETTING THERE WAS ABOUT 400 -- EXCUSE ME, 504,000 ON AVERAGE. FOR US, WE'RE PROJECTED TO FINISH AT 739,000 TOTAL VISITS. OUR LAST THREE-YEAR AVERAGE WILL BE OVER 700,000 IN TOTAL VISITS, SO ABOUT A 200,000 VISIT INCREASE SINCE WE'VE BEEN HERE. >> Barrera: WELL, AND I REALLY APPRECIATE THAT. I WAS REALLY CRITICAL WHEN -- YOU KNOW, WHEN -- THE WAY THAT WE DID THIS TYPE OF DEAL, SO I REALLY APPRECIATE ALL THAT YOU HAVE DONE FOR THE COMMUNITY TO TRY, NUMBER ONE, AN ORGANIZATION THAT WAS LOSING IN OPERATIONS AND NOW YOU'VE INCREASED REVENUE BY $700,000 A YEAR, I WON'T BE ON THE COUNCIL WHEN YOUR CONTRACT COMES UP FOR RENEWAL, BUT I WILL ACTIVELY LOBBY AT THAT TIME FOR ITS RENEWAL, YOU KNOW? THE OTHER THING IS YOU HAD INDICATED THE NET, THAT THERE WERE SOME REQUESTS -- SO EXPLAIN THAT TO ME AGAIN. NOW, HERE, LET ME JUST SAY, AND I'M LOOKING AT MY TIME. YOU KNOW, I'M OF THE FIRM BELIEF THAT THE VENUE IS FOR FUN. PEOPLE WANT TO GO AND THEY WANT TO PARTICIPATE, THEY WANT TO GO TO A CONCERT, THEY WANT TO HAVE -- THEY WANT TO GO TO A SUITE, THEY WANT TO INVITE THEIR CLIENTS, THEY WANT TO TAKE THEIR FRIENDS. I KNOW EVERY TIME ANIYAH'S THERE, MY WIFE'S ALWAYS, DON'T PROCRASTINATE, GO GET TICKETS. SO IT'S A HUGE DEAL. SO I CAN SEE HOW SOMEBODY WANTS IT TO ENTERTAIN, THAT THEY DON'T WANT TO BE IN THE PUBLIC, AS PUBLIC AS THIS IS, THAT THEY -- I CAN'T SEE ANYBODY SAYS, HEY, I JUST WANT TO HAVE A GOOD TIME. I JUST WANT TO HAVE A PLACE TO TAKE MY FRIENDS AND FAMILY AND MY CUSTOMERS. I DON'T WANT TO BE IN THE NEWSPAPER. YOU'RE GOING TO FORCE ME TO BE IN THE NEWSPAPER. SO I CAN SEE THAT. I MEAN, I'M ONE OF THE -- I THINK OBVIOUSLY I'M VERY BOLD AND I'LL GO AND -- I'VE NEVER SEEN A CAMERA I DIDN'T LIKE, YOU KNOW, AND I'LL GIVE MY OPINION, BUT THAT'S NOT FOR EVERYBODY. AND I DON'T THINK THAT THAT'S -- I DON'T THINK THAT'S LACK OF TRANSPARENCY. THAT'S SOMEBODY THAT WANTS TO -- THAT'S SOMEBODY THAT JUST WANTS TO HAVE A GOOD TIME. AND THEN IF THEY HAD A BAD EXPERIENCE WITH WHOEVER -- WHAT IS IT -- THAT WE CHOOSE AS THE NAMING RIGHTS, THEN THAT'S THEIR DECISION AND THAT'S THEIR DECISION NOT TO SPEND THEIR DISPOSABLE INCOME FOR ENTERTAINMENT. YOU KNOW? THEY CAN -- GO AHEAD. >> THANK YOU FOR THAT, COUNCILMEMBER. I JUST WANT TO TAKE A STEP BACK AND JUST SAY TO ALL THE COUNCILMEMBERS, WE TAKE TO HEART YOUR COMMENTS, RIGHT, ABOUT THE TRANSPARENCY. AND JUST FROM THE START AND TAKE A STEP BACK, LIKE THESE ARE TWO CONSIDERABLE OFFERS, LIKE WE WANT TO ACKNOWLEDGE THAT. AND SO FOR US, YOU KNOW, WE WANT NOTHING MORE THAN TO HAVE EVERYBODY'S INPUT AND EVERYBODY -- THIS IS YOUR ASSET, AND SO WE WANT TO MAKE SURE TO THE EXTENT POSSIBLE THAT YOU ARE OKAY WITH THIS AND YOU SOMEHOW ARE INVOLVED IN THAT DECISION. IF IT'S NOT THE CASE AND WE'RE DOING THAT, WE'RE GOING TO TRY TO MAKE -- DO THE -- MAKE THE BEST DECISION ON BEHALF, YOU KNOW, OF THIS VENUE AND ON BEHALF OF THE COMPLEX, SO I JUST WANT TO STATE THAT. LIKE I UNDERSTAND THE FRUSTRATION TO THE EXTENT THAT WE CAN PROVIDE ANY MORE DETAIL IN TERMS OF THE EVALUATION PROCESS, I KNOW IT WAS PROBABLY QUICKLY THAT WE RAN THROUGH THE NUMBERS, COUNCILMEMBER, ABOUT WHAT THE DELTAS ARE, BUT TO BE CLEAR, WE THINK WE'RE REALLY TALKING ABOUT A DIFFERENCE OF JUST THE ITEMS THAT RELATE TO THIS KIND OF ISSUE OF HAVING PEOPLE WHO DON'T WANT TO DISCLOSE THEIR CONCERNS. THE 400,000 A YEAR, WHICH IS $4 MILLION, LIKE THOSE ARE REAL ASSETS THAT WE CAN DEMONSTRATE THAT ARE NOW AVAILABLE TO RESELL AS A RESULT OF THE DIFFERENT OFFERS. SO IF WE HAVE THE OPPORTUNITY TO PROVIDE MORE DETAIL, WE'LL DO THAT, BUT WE JUST WANT TO MAKE SURE, WE WANT TO BE AS TRANSPARENT AS POSSIBLE AND WE WANT TO DO THE RIGHT THING FOR YOUR ASSET. SO I JUST WANT TO STATE THAT AS CLEARLY AS WE CAN. >> Barrera: I APPRECIATE THAT. I APPRECIATE THAT. HERE, JUST ONE LAST THING: HAVE YOU EVER HAD A PARTNER TRY TO USE THE MEDIA TO LEVERAGE NEGOTIATIONS? ANYBODY THAT YOU'VE NEGOTIATED WITH? >> I MEAN, WE OBVIOUSLY WORK IN MANY CITIES, AND, YOU KNOW, I DON'T WANT TO COMMENT OR DISPARAGE ANYONE, WE DEAL WITH ALL TYPES OF ISSUES. WE UNDERSTAND PEOPLE ARE VERY PASSIONATE ABOUT THEIR AND FOR THEIR COMMUNITIES AND CERTAINLY FOR THEIR INTERESTS, SO WE DEAL AS WE HAVE TO. >> Barrera: OKAY. I APPRECIATE THAT. THANK YOU. COUNCILWO MAN VAUGHN? >> Vaughn: WELL, FIRST OFF, I THINK THERE'S BEEN ENOUGH NEGATIVE THINGS SAID ABOUT THOMAS J. HENRY THAT SHOULD NEVER HAVE BEEN SAID, TALKING ABOUT LEVERAGING THE CAMERAS WHEN YOU GO SAY ANTIFA, Y'ALL DIDN'T DO THAT, ONE OF THE COUNCILMEMBERS DID AND I HOPE THAT DID NOT AFFECT WHAT YOU DID, BECAUSE THAT IS SO NOT TRUE. AND SHAME -- IT'S JUST AWFUL. YOU JUST DON'T DO THAT. EITHER YOU PICK ONE, YOU'RE SATISFIED WITH THE ONE YOU PICKED. AND THAT IS WHAT I ASK, RESPONSIBLE IN THE HIGHEST BIDDER. NOW, WHAT I WANT TO ASK YOU IS HOW -- WHAT CRITERIA DID YOU USE -- BECAUSE YOU HAD TO HAVE SOME FACTORS. SAY, OKAY, THIS ONE'S GOT THIS. SO TELL ME WHAT YOU DID. >> SURE. THERE WAS -- IN ADDITION TO PRICE, THERE WAS A NUMBER OF FACTORS. WE LOOKED AT REPUTATION, SO THE MARTINDALE HUBBARD -- THERE'S AN ONLINE RATING SCALE THAT PEER REVIEWED LOOKS AT DIFFERENT LAW FIRMS, SO WE LOOKED AT THAT. WE LOOKED AT FEEDBACK FROM SPONSORS, WE LOOKED AT FEEDBACK FROM TENANTS, WE LOOKED AT PAST SUPPORT OF THE VENUE, WE LOOKED AT THEIR ROOTS WITHIN CORPUS CHRISTI, WHO'S BEEN HERE, WHO'S BEEN SUPPORTING THE COMMUNITY, AND WE TOOK ALL THOSE FACTORS AND SORT OF PLUGGED IT INTO OUR DECISION. >> Vaughn: OKAY. AMENITIES, WITHIN THE TWO DIFFERENT CONTRACTS, I WOULD THINK THAT THERE -- BY GETTING THE NAMING RIGHT, THEY GET SOMETHING. SO DID ONE HAVE MORE THAT THEY REQUESTED THAN THE OTHER DID? >> CORRECT. THE PACKAGE THAT WAS PRESENTED TO THOMAS J. HENRY HAS SIGNIFICANTLY MORE INVENTORY IN IT. SO THINGS LIKE THE BOX OFFICE NAMING RIGHTS, SO THE BOX OFFICE WOULD ALSO BE THE THOMAS JMED HENRY BOX OFFICE, THAT WAS SOMETHING THAT WAS NOT INCLUDED IN THE HILLIARD PACKAGE, SO THAT IS SOMETHING WE CAN GO OUT AND SELL TO ANOTHER COMMUNITY MEMBER, ANOTHER BUSINESS IN THE COMMUNITY. THERE WAS APPROXIMATELY $400,000 WORTH OF RATE CARD INVENTORY OF THAT TYPE OF -- >> Vaughn: SO THEY HAVE LOTS OF USE FOR THE CENTER, THEY CAN GO IN TO ANYTHING, IS THAT PART OF -- I'M TRYING TO FIGURE OUT WHAT THE AMENITIES ARE THAT YOU'RE GIVING? >> SURE. SO IT'S A SUITE, SO THEY WOULD HAVE A SUITE FOR EVERY EVENT, THERE WOULD BE VIP TICKETS FOR EVERY EVENT, THERE'S A SPECIAL ENTRANCE FOR THEIR GUESTS, SIGNAGE EXTERIOR, INTERIOR, E-MAIL DATABASES, SOCIAL MEDIA, THINGS LIKE THAT. IT'S A VERY LENGTHY LIST OF WHAT'S INCLUDED FOR A NAMING RIGHTS PARTNER. >> Vaughn: OKAY. I WILL TELL YOU THAT ONE OF THE ONES THAT SAID THEY WOULD NEVER STEP IN THERE AGAIN AND WOULD NOT USE IT, AND I'LL TELL YOU THIS BECAUSE HE TOLD ME AND I'M TRANSPARENT, IS BUC DAYS, JOHNNY PHILIPPINE NO OR WHATEVER, I CAN'T PRONOUNCE HIS NAME. >> Hernandez: FILL PAY OWE. >> Vaughn: HE WAS ONE OF THE ONES, I GOT CALLED FROM SEVERAL SAYING THEY WOULD NEVER USE IT. I WAS GOING, WHERE ARE YOU GOING? WHAT ARE YOU GOING TO USE FOR YOUR BUC DAYS? I'M NOT GOING TO CRITICIZE YOU GUYS. I'M NOT GOING TO. I ASKED YOU TO PICK SOMEBODY. I'M GLAD YOU PICKED SOMEBODY AND IT'S OVER. I WISH THAT WE HAD GOTTEN MORE MONEY, BECAUSE TO ME, THAT'S THE BUSINESS DECISION. I KNOW THE HILLIARDS, I CONGRATULATE THEM FOR -- I APPRECIATE THE FACT, BOTH OF THEM BID. THEY'RE BOTH GOOD PEOPLE. AND PERSONAL INJURY LAWYERS, THEY JUST -- I THINK YOUR HUSBAND'S ONE, TOO, ISN'T IT, PAULETTE, -- SORRY, BUT SOMETIMES THEY DON'T HAVE GOOD VIBES FROM THE PUBLIC BECAUSE OF THE SUING AND ALL THAT STUFF. TO ME, I DON'T THINK THAT SHOULD HAVE BEEN A GREAT FACTOR. I'M JUST GOING TO SAY, THOMAS JMED HENRY HAS DONE A LOT FOR THIS COMMUNITY, HE HAS, AND I THINK PEOPLE DON'T SEE THAT. HE IS MOVING BACK. THE HILLIARDS LIVE HERE. I'M SURE THEY EVE DONE A LOT FOR THE COMMUNITY. I'M CONCERNED ABOUT SOME OF THE THINGS GOING ON OVER THERE ESPECIALLY WHEN I'M SEEING LAWSUITS IN DALLAS FOR DIFFERENT STUFF ON THE OVG COMPANY, I WOULD ASK HEATHER IF WE CAN GET SOME KIND OF REPORT ON PERFORMANCE. I WILL TELL YOU THIS, BECAUSE I TOLD THEM I WOULD TELL IT. IF YOU'LL STAY UP HERE, HEATHER, I HAD SOMEONE CALL ME FROM JANET'S BAKERY TELLING PLEASE LET THEM KNOW, I APPRECIATE THEM. THEY'VE DONE A GREAT JOB. SO I'VE DONE MY DUTY. THEY DID. THEY APPLAUDED YOU. BUT COULD WE GET A PERFORMANCE REPORT AND SEE WHAT THEY'VE DONE, I'M SURE Y'ALL HAVE SOMETHING LIKE THAT. MY CONCERN AND I THINK SOME OF THE OTHERS, TOO, ARE THE AUDIT. I DON'T KNOW THAT THAT IS THEM OR THE CITY. CAN YOU EXPLAIN THAT. >> Hulbert: I SURE CAN. SO OVG HAS COMPLIED WITH ALL THE FINANCIAL REPORTING, THEY SEND US FINANCIAL REPORTS ON A MONTHLY BASIS. THE CHALLENGE HAS BEEN WHEN SMG LEFT, THEY -- SO IT'S A SHARED SET OF BOOKS, SO BASICALLY, SMG TURNED THE BOOKS OVER AS ONE ACCOUNTING SYSTEM, TURNED THE BOOKS OVER TO OVG. THE CHALLENGE WAS IS THAT SMG WAS BEHIND ON THEIR AUDITS. AND SO BECAUSE WE DON'T HAVE THEM HERE TO HELP US GO THROUGH THAT STUFF, WE HAD TO FIND AN AUDIT FIRM THAT WAS WILLING TO GO THROUGH AND KIND OF ALMOST DO A FORENSIC AUDIT TO GET THOSE BEGINNING BALANCES TO GO INTO THE OVG BOOKS, BECAUSE YOU -- PART OF AN AUDIT IS NOT ONLY JUST SCHCHECKING TO SEE IF THINGS ARE VALID, BUT IT'S ALSO TAKING THOSE V FINANCIALS AND ROLLING THEM FROM YEAR TO YEAR. SO WE'RE ACTUALLY IN THE PROCESS RIGHT NOW, WE FOUND AN AUDIT FIRM WHO IS WORKING ON THAT. THEY'RE CATCHING THEM UP TO THE TIME OVG TOOK IT OVER. OVG HAS EVERYTHING READY TO GO. AS SOON AS WE HAVE THOSE BEGINNING BALANCES, WE DROP THOSE IN AND WE GO FORWARD, SO WE'RE HOPING WITHIN THE NEXT SEVERAL MONTHS WE WILL HAVE EVERYTHING UP TO DATE AND AUDITS WILL ALL BE CAUGHT UP. >> Vaughn: WELL, IT'S KIND OF CONCERNING THAT SMG, HOW DID IT GET TO THE POINT THAT WE DIDN'T KNOW THEY WERE BEHIND, THAT FAR BEHIND? >> Hulbert: WE KNEW THEY WERE BEHIND, AND WE -- YOU KNOW, THAT WAS PART OF -- NOT NECESSARILY THE DECISION ON ONE OF THE REASONS WHY WE CANCELED THE CONTRACT -- OR THAT WE MOVED AWAY FROM THEM, BUT THAT WAS ONE OF THEM, IS THAT THEY WERE BEHIND, AND THEN WE COULD NOT GET THEM TO CATCH UP TO GET THEIR BOOKS CAUGHT UP, AND SO, YOU KNOW, THIS IS THE POSITION THAT WE'RE IN. AND LIKE I SAID, OVG THAT'S PROVIDED US WITH THOSE MONTHLY FINANCIAL STATEMENTS. WE ACTUALLY HAVE MOVED -- OVG UTILIZES A CITY BANK AGAIN, SMG HAD THEIR OWN ACCOUNT THAT THEY PUT MONEY INTO AND PAID BILLS OUT OF. OVG UTILIZES A CITY BANK ACCOUNT, WE HAVE FULL TRANSPARENCY OF WHAT THOSE INS AND OUTS ARE. SINCE WE COULDN'T GET THE BEGINNING BALANCES, THAT'S BEEN THE STICKING POINT. >> Vaughn: SO WE'RE GOING TO GET THAT DONE. >> Hulbert: EXACTLY. >> Vaughn: THEY PROVIDE A FINANCIAL REPORT HOW OFTEN? >> Hulbert: MONTHLY. >> Vaughn: HEY, THANK Y'ALL FOR FINALLY NAMING SOMEBODY. IT TOOK YOU WAY TOO LONG. I'VE GOT TO SAY THAT, THAT IRRITATED THE HECK OUT OF ME. THE LONGER YOU PROLONG IT, THE WORSE IT GETS IN THE PUBLIC. SO THANK YOU FOR FINALLY MAKING A DECISION. COUNCILWO MAN CAMPOS? >> Campos: MAYOR, I JUST WANTED TO PUBLICLY THANK THOMAS J. HENRY REALLY -- FOR FIRST BRINGING THE OFFER TO OVG. I DON'T THINK HILLIARD LAW FIRM WOULD HAVE BEEN HERE IF THOMAS JMED HENRY HAS NOT PUBLICLY STATED, YOU KNOW, WHAT THEIR -- WHAT THEIR OFFER WAS, SO I WANT TO SAY -- AND THAT'S WHAT HELPS. I MEAN, FOR ME, I KNOW -- I REALIZE IT'S NOT EASY AND I AM -- YOU KNOW, IT'S GREAT THAT OVG IS NOW OPERATING IN THE BLACK, BUT THERE'S SOME OTHER THINGS THAT I -- I CAN'T AGREE WITH WITH WHAT HAPPENED. AND I AM SORRY THAT Y'ALL GOT PUT IN THIS SITUATION, BUT, AGAIN, YOU KNOW, WE GAVE YOU DIRECTION AND I THOUGHT THAT THAT WAS ENOUGH, BUT APPARENTLY THERE'S OTHER PARTIES HERE IN THE CITY THAT STILL WANT TO RUN THINGS THEIR WAY. AND THAT'S ASHAME. SO ANYWAY, THANK YOU. COUNCILMA N SCOTT? >> Scott: SO YOU'RE IN SINGLE SOURCE NEGOTIATIONS, LIKE IT'S NOT DONE, JUST GIVE THEM THE NUMBER, TELL THEM TO COME UP A LITTLE BIT, OR IS THAT -- ARE YOU FINISHED TALKING ABOUT NUMBERS WITH THE SINGLE ENTITY? >> CORRECT. WE ARE MOVING JUST THE CONTRACT PART, SO THE ELEMENTS OF THE PARTNERSHIP ARE ESSENTIALLY AGREED TO, BUT IT STILL HAS TO BE PUT INTO CONTRACT FORM. >> Scott: GOT IT. GOT IT. LET ME JUST LOOK AT MY NOTES. I SHARE COUNCILWOMAN PAXSON'S INFORMATION ABOUT THE FINANCIALS, I QUIT LISTENING TO SOME OF THOSE A MINUTE AGO, I'M SORRY. IT WOULD HAVE BEEN GOOD TO HAVE IT. I THINK THOSE ARE LEGITIMATE QUESTIONS. I THINK I'VE BEEN PRETTY TRANSPARENT ABOUT -- I TALKED TO MICHAEL TWICE AND THEN AGAIN TODAY MY OPINION, BUT THAT'S JUST AN OPINION. YOU PICKED A OR PICKED B. THAT'S YOUR BUSINESS, NOT MINE. I WILL TELL YOU, MY POINT ABOUT THE PROUD BOYS AND ANTIFA IS THAT IT'S NOT ALL ABOUT THE NAME OR WE WOULD BE SOLICITING ENTITIES THAT WE MIGHT NOT LIKE BECAUSE WE MIGHT BE TRYING TO GET 4 MILLION A YEAR. I -- EXCEPT FOR Y'ALL, NO ONE'S REACHED OUT AND SAID THAT -- OR MAYBE YOU DID, TOO, BUT THAT I WAS -- THERE WAS A RELATIONSHIP BETWEEN MY COMMENTS AND WHAT I THINK ABOUT MR. HENRY. I DON'T KNOW HIM. WHETHER OR NOT I WAS ONE OF HIS SON'S ASSISTANT BASEBALL COACH, GOOD KID 20-SOMETHING YEARS AGO, AND I KNOW MR. HILLIARD AND KATHERINE, SO THEY CERTAINLY DIDN'T REACH OUT, BUT IF I -- IF SOMEONE FEELS LIKE THAT I HAVE COMPARED THEM TO ANTIFA OR PROUD BOYS, I APOLOGIZE, BECAUSE THAT WAS NOT MY INTENT. I'M A LITTLE REGRETFUL NOW, BECAUSE SOMEBODY PITCHED THAT IDEA TO ME, NOW I WISH I HADN'T SAID IT. BUT I THOUGHT IT WAS RELEVANT. THE POINT BEING, YOU'RE NOT GOING TO SOLICIT FROM THE WHOLE WORLD, BUT I'M FINE WITH HENRY. I WAS FINE -- I WASN'T GOING TO BOTHER YOU IF YOU PICKED HENRY, I'D SAID MY PEACE, I'M NOT GOING TO BOTHER YOU IF YOU PICKED HILLIARD, I'VE SAID MY PEACE. BUT NOW YOU ARE AT THE PODIUM, SO I WILL SAY MY PEACE. I WOULD -- I CONTINUE TO WISH WE COULD MAKE AMENDMENTS TO THE CONTRACT TO ALLOW MORE LOCAL PARTICIPATION IN THE FA I FACILITY. I RECOGNIZE THAT IT'S MORE COST INVOLVED, BUT I THINK THERE'S A BENEFIT TO LOCAL VENDORS BEING MORE PARTICIPATIVE IN YOUR BUSINESS THAN THEY ARE. SO I DO. AND -- YEAH. I JUST WANT TO GET THAT OFF MY CHEST. >> THANK YOU. I -- WE WILL TAKE THAT IN CONSIDERATION COUNCILMEMBER SCOTT. IT'S THE FIRST I'VE HEARD IT, BUT MY TEAM SHARED IT, SO I'LL MAKE SURE WE ADDRESS IT. >> Scott: WELL, THANK YOU. AND NOW THAT WE HAVE YOU, YES, I THINK -- I THINK IT WAS PART OF THE OLD CONTRACT, AND I GET IT. YOU KNOW, IF I CAN SOLE SOURCE IT, I'LL SAVE YOU A DOLLAR AND THEN WE NET A DOLLAR AND WE'RE ALL HAPPY BECAUSE YOU'RE GOING TO GET A PERCENTAGE -- NOT US. WE GET SOME OF THAT IF YOU NET, BUT I ALSO THINK THERE'S A SIGNIFICANT BENEFIT TO THE LOCAL VENDORS TO PARTICIPATE WITH YOU ALL, SO I REALLY -- THAT'S A BIG DEAL TO ME. AND I THINK WE LOST IT IN THAT TRANSITION TO YOU ALL. I WASN'T HEAR, I WASN'T PART OF IT, BUT I JUST WANT TO PUT THAT OUT THERE. THANK YOU FOR LISTENING. >> THANK YOU. >> Scott: AND, AGAIN, IF I HAVE INSULTED ANYONE OR THEIR INTELLIGENCE, I APOLOGIZE. I'M JUST GLAD I THINK IT'S OVER, BUT WE'LL SEE WHAT HAPPENS. COUNCILMA N CANTU? >> Cantu: I GOT A QUESTION. IF YOU GUYS HAD AN OPTION OF GETTING YOUR COMMISSION OFF THE NAMING RIGHTS AND HAVING THE CITY COUNCIL VOTE ON THE NAME, WOULD Y'ALL BE OKAY WITH THAT? JUST A THOUGHT. JUST THINKING OUT LOUD. WOULD THAT HAVE BEEN AN OPTION FOR YOU GUYS? >> WE WANT TO ACT IN THE BEST INTEREST OF THE BUILDING. IT HAS NOTHING TO DO WITH OUR FEES. CLEARLY, WE WOULD HAVE GOTTEN HIGH FEES, AS YOU POINTED OUT EARLIER, SO WE ARE AGNOSTIC AS IT RELATES TO IT'S NOT ABOUT OUR FEES, IT'S ABOUT WHAT WE THINK IS THE BEST OPPORTUNITY FOR THE BUILDING. >> Cantu: BUT WOULD YOU HAVE BEEN OKAY WITH THAT? IT JUST BLOWS MY MIND YOU GUYS PICKED SOMEBODY YESTERDAY AND YOU KNEW YOU GUYS WERE COMING TO COUNCIL TODAY TO DISCUSS ALL THIS. >> I APOLOGIZE, COUNCILMEMBER. ARE YOU ASKING IF WE'D BE OKAY IF YOU VOTED ON IT? >> >> Cantu: IF WE WOULD HAVE PAID YOU THE SAME AMOUNT OF MONEY IN YOUR CONTRACT, I GUESS LIKE 20% OF NAMING RIGHTS. >> YEAH, WE WOULD HAVE BEEN FINE REGARDLESS OF WHAT PAYMENT STRUCTURE WAS. LIKE IT WASN'T ABOUT THE PAYMENT. >> Cantu: BUT YOU WOULD HAVE LET US DECIDE FOR YOU GUYS? >> SIR? >> Cantu: YOU WOULD HAVE LET US DECIDE FOR YOU GUYS ON THE NAMING RIGHTS? >> WE'VE BEEN IN OTHER MARKETS WHERE THE CITIES ACTUALLY HAVE AN APPROVAL PROCESS, BUT... >> Cantu: GOT IT. JUST FOR THE RECORD, I GOT A PHONE CALL PROBABLY, WHAT WAS IT, 1:30, 2:00, THOMAS JMED HEN THRI WAS GOING TO DO A PRESS RELEASE YESTERDAY AND OFFER $2.5 MILLION AND THEN I HEARD 30 MINUTES LATER HE GOT AN E-MAIL FROM YOU GUYS SAYING HE PICKED SOMEONE ELSE. I MEAN, THAT'S A LOT OF MONEY. SOME SAY MONEY'S NOT EVERYTHING, BUT WE NEED MONEY RIGHT NOW AND, YOU KNOW, THEY -- THEY WANT THE TAXPAYER TO PAY A BILLION DOLLARS FOR, YOU KNOW, FOR A PROJECT AND WE CAN'T TAKE SOMEONE'S MONEY WHO'S GOING TO OFFER US A LOT OF MONEY. THAT JUST BLOWS MY MIND. I THINK YOU GUYS -- I THINK YOU GUYS GOT IN THE MIDDLE OF POLITICS. I REALLY DON'T THINK YOU GUYS ARE BAD PEOPLE. I THINK Y'ALL DO SOME GOOD FOR THE AMERICAN BANK CENTER, I REALLY DO, BECAUSE I HAVE PEOPLE THAT TELL ME GOOD THINGS AND THEN THERE'S PEOPLE THAT TELL ME BAD THINGS. BUT I REALLY THINK YOU GUYS GOT STUCK IN POLITICS. I REALLY DO. AND IT'S ASHAME. BUT, YOU KNOW, I JUST -- I JUST -- I -- I -- I -- I JUST -- I CAN'T UNDERSTAND HOW Y'ALL WILL LEAVE THAT MUCH MONEY ON THE TABLE AND -- YOU KNOW, I MEAN -- AND -- AND WHEN I SAY YOU GUYS GOT STUCK IN POLITICS, THAT WAS YOUR DECISION TO BE STUCK IN IT AND, YOU KNOW, JUST GO WITH THE HIGHEST BIDDER, RIGHT, BUT I JUST DON'T TRUST YOU GUYS NO MORE. I REALLY DON'T. I DON'T TRUST YOU. AND I REALLY WANT TO KNOW WHAT'S THE OPTIONS WE HAVE IN THE PROCESS? I KNOW WE CAN'T TERMINATE THEM RIGHT NOW BECAUSE WE NEED SOMEBODY TO RUN OUR BANK CENTER, BUT WHAT'S THE PROCESS WE NEED TO DO TO START THAT PROCESS BECAUSE OVG 360 LEFT A LOT OF MONEY ON THE TABLE, AND THEY'RE SUPPOSED TO BE ON OUR SIDE, THE CITY'S SIDE, TAXPAYER'S SIDE, SO WHAT'S THE OPTIONS? CAN YOU PLEASE STOP MY TIME SO MILES CAN ANSWER THAT QUESTION FOR ME, PLEASE? >> Risley: YEAH, I WOULD LIKE TO POINT OUT THAT THE TERM OF THE AGREEMENT -- AND -- GOES UNTIL SEPTEMBER 30TH, 2027. AND THE AGREEMENT RENEWS UNLESS WE PROVIDE WRITTEN NOTICE OF NONRENEWAL TO OVG ON OR BEFORE MARCH 1ST, 2027. SO THAT'S THE TIME FRAME. IF COUNCIL DECIDES IT WANTS TO MODIFY THIS CONTRACT OR TERMINATE THE CONTRACT, THAT'S THE TIME FRAME WE NEED TO BE THINKING ABOUT. OUTSIDE OF THAT TIME FRAME, YOUR TERMINATION OPTIONS ARE PURPOSELY LIMITED. AND THEY'RE LIMITED FOR -- WITH THE INTENT OF PERSUADING OVG TO PUT CAPITAL INVESTMENT INTO THE -- INTO THE AMERICAN BANK CENTER. SO THE TERMINATION OPTIONS OUTSIDE OF THAT TIME FRAME ARE BY EITHER PARTY UPON 30 DAYS' WRITTEN NOTICE IF THE OTHER PARTY FAILS TO PERFORM OR COMPLY WITH ANY OF THE MATERIAL TERM, COVENANTS, AGREEMENTSES OR CONDITIONS. >> Cantu: SO LOSING TAXPAYER MONEY, IS THAT A CONDITION TO FIRE THEM? >> Risley: ACTUALLY, IT'S -- >> Cantu: IT'S LIKE STEALING, RIGHT? YOU'RE STEALING FROM THE TAXPAYER. >> Risley: YOU'RE DESCRIBING SOMETHING THAT THERE'S NOT EVIDENCE THAT HAS OCCURRED. >> Cantu: VERY CLEARLY, THEY HAVE A ONE POINT SOME MILLION -- 1.3 BID AND THEY WOULD HAVE A $2.5 MILLION BID, SO I MEAN, THAT'S A LOT OF MONEY LEFT ON THE TABLE. >> Risley: BUT THE MATERIAL TERMS COVENANTS AGREEMENTS AND CONDITIONS, I HAVE NOT FOUND ANY KIND OF ANY VIOLATION OF THOSE LOOKING OVER THE CONTRACT. >> Cantu: UH-HUH. >> Risley: AND I'LL GO THROUGH THESE METHODS OF TERMINATING. OR BY EITHER PARTY IMMEDIATELY BY WRITTEN NOTICE UPON THE OTHER PARTY BEING A JUDGED BANKRUPTER AND SOLVENT, BY OWNER AND 30 DAYS' WRITTEN NOTICE AND SUBJECT TO THE BUYOUT AMOUNT PRIOR TO THE EFFECTIVE DAY OF TERMINATION IF DURING THE OPERATING YEAR THE OWNER FAILS TO... FOR THE FOLLOWING OPERATING YEAR. THAT'S -- THAT'S -- WE ESSENTIALLY APPROPRIATE NO FUNDS AND TAKE THE FACILITY DARK, TURN IT OFF AND DON'T APPROPRIATE DURING THE FOLLOWING YEAR. SO THAT'S A VERY -- THAT'S A VERY STRICT ANTIAPPROPRIATION CLAUSE, SO THAT'S... AND, D, BY OWNER UPON 120 DAYS' WRITTEN NOTICE AND SUBJECTED TO PAYOUT AMOUNT IF OVG FAILS TO MEET THE REQUISITE PERFORMANCE MEASURES DURING AT LEAST TWO CONSECUTIVE OPERATING YEARS ASSET FORTH IN SECTION 2.3 PROVIDED THE OWNER MUST EXERCISE SUCH RIGHT WITHIN SIX MONTHS OF THE CONCLUSION OF THE SECOND OPERATING YEAR OR SHALL BE DEEMED TO HAVE WAIVED SUCH RIGHTS. SO THERE'S A VERY STRICT TIMELINE FOR MEASURING PERFORMANCE AND THEN TERMINATING EARLY BECAUSE OF A FAILURE OF PERFORMANCE. IN THIS CASE, IT APPEARS THAT BECAUSE THEY'RE IN THE BLACK, THEY'RE OPERATING IN THE BLACK, THAT FAILURE OF PERFORMANCE DOES NOT -- WE DON'T HAVE EVIDENCE, AND WE DEFINITELY HAVEN'T PROVIDED NOTICE FOR THAT FAILURE OF PERFORMANCE TO HAVE OCCURRED. AND THEN E, AS OTHERWISE PROVIDED FOR HEREIN, ESSENTIALLY, THAT'S A GENERAL MATERIAL -- >> Cantu: SO IF WE WOULD JUST BREAK THEIR CONTRACT, WE HAVE TO PAY SOME MONEY BACK, CORRECT? >> Risley: IF YOU BREAK A CONTRACT THAT HAS A CONTINUOUS -- THEY HAVE THE RIGHT TO BE THERE UNTIL SEPTEMBER 30TH, JUST TERMINATING -- BREACHING THAT CONTRACT WOULD MAKE THE CITY LIABLE FOR ALL THE DAMAGES THAT FLOW FROM THAT BREACH POTENTIALLY. AND ATTORNEY'S FEES. >> Cantu: I THINK YOU CAN DO BETTER ON THOSE CONTRACTS, MILES, BECAUSE YOU DON'T GIVE US NO LOOPHOLES. YOU REALLY DON'T. THAT'S JUST... I KNOW I DON'T HAVE THAT MUCH TIME LEFT, BUT I AM GOING TO BRING THIS BACK TO COUNCIL, BECAUSE WE'VE GOT TO FIGURE THIS OUT. THIS IS -- THIS IS CRAZY, AND I THINK WE NEED TO -- WE NEED TO FIGURE THIS OUT BECAUSE THE TAXPAYER GOT SCREWED AGAIN LIKE THEY GOT SCREWED ALL THE TIME, AND I'M SORRY. >> Mayor Guajardo: AND I'D ALSO LIKE TO, I GUESS, CLARIFY, YOU ARE ENTERING INTO NEGOTIATING STAGE. NO ONE HAS ESSENTIALLY -- I KNOW YOU HAVE -- I DON'T KNOW WHAT -- AWARDED IS THAT THE CORRECT PHRASE? BUT NOW Y'ALL HAVE TO NEGOTIATE THE PACKAGE IS GOING TO BE TO ACTUALLY FINALIZE, SO TO SPEAK? >> WE HAVE TO PUT THE PACKAGE INTO A CONTRACT FORM, THE PACKAGE HAS BEEN DESIGNED, THE PRICE HAS BEEN DESIGNED IT HAS TO BE PUT INTO A LONG-FORM CONTRACT. >> Mayor Guajardo: SO IT HAS BEEN DECIDED, THE NEGOTIATING OF EVERYTHING? >> CORRECT. >> Mayor Guajardo: THAT'S WHAT I READ YESTERDAY, THOUGH. IN YOUR PRESS RELEASE, I THOUGHT YOU SAID THE NEGOTIATING -- >> THE CONTRACT NEGOTIATIONS. SO ANY OF THE TERMS WITHIN THE CONTRACT STILL NEED TO BE FINALIZED. >> Mayor Guajardo: OKAY. >> BUT GENERALLY, THOSE ARE NOT ASSETS OR PRICE, THOSE ARE SET. >> Mayor Guajardo: RIGHT. UNDERSTOOD. COUNCILWOMAN VAUGHN? >> Vaughn: OKAY. REAL QUICK, I DO THINK YOU GUYS GOT PULLED INTO POLITICS AND I THINK THAT WAS NO FAULT OF YOUR OWN, IT WAS BECAUSE THE PREVIOUS COUNCIL GAVE YOU THE AUTHORITY TO NAME THE VENUE, WHICH MAYBE NEXT TIME YOU WON'T TAKE IT FROM ANYONE, BUT I DON'T THINK THAT SHOULD HAVE HAPPENED. I DON'T THINK THAT SHOULD HAVE BEEN DONE. THE FIGURES THAT YOU GAVE ME A WHILE AGO, ABOUT FLY HUNDRED THOUSAND AND 700, THE DIFFERENCE, WAS THAT DURING COVID? >> IT WAS POSTCOVID. >> Vaughn: ALL RIGHT. I'M GOING TO MAKE A CORRECTION, BECAUSE JOHNNY WITH BUC DAYS, I'M NOT EVEN GOING TO TRY HIS LAST NAME, WHAT HE SAID TO BE CLEAR, WAS HIS SPONSORS WOULD NOT CONTINUE TO SPONSOR. SO I CONSIDER THAT BUC DAYS BECAUSE THEY'RE HIS SPONSORS, BUT HIS SPONSORS WOULD NOT CONTINUE TO SPONSOR. DID Y'ALL GET A LIS OF SPONSORS THAT WOULD HAVE REPLACED THEM FROM MR. ZANONI? >> FOR BUC DAYS? >> NO, JUST THE SPONSORS? GENERAL. >> Vaughn: DID YOU GET A LIST? BECAUSE SOMEONE SENT ME A LIST OF PEOPLE THAT WERE WILLING TO SPONSOR, AND I DID NOT WANT TO GET INVOLVED. I SENT IT TO MR. ZANONI AND ASKED HIM TO SEND IT TO Y'ALL. DID Y'ALL EVER GET IT? >> WE DID. >> Vaughn: I WANT TO MAKE SURE Y'ALL TOOK THAT INTO ACCOUNT. THEY HAD OTHERS THAT WERE COMING. JUST MAKING SURE YOU GOT IT. >> YEAH. >> Vaughn: OKAY. THANKS. COUNCILMA N HERNANDEZ? >> Hernandez: OKAY. WHILE WE'RE SITTING HERE LISTENING, I DID SOME MATH. WE ARE LOSING OUT ON A YEARLY BASIS $536,000. AND ON YOUR PART BY GOING WITH THE LOWER THING, IT'S 134,000 ON THE 20% SIDE. HAS ANYBODY OFFERED TO MAKE YOU WHOLE FOR CHOOSING THE LOWER AMOUNT? >> NO. WE MADE -- >> Hernandez: SO YOU HAVE NOT RECEIVED ANY MONEY FROM ANYBODY ELSE THAT WOULD HAVE COMPENSATED FOR THE LOSS OF REVENUE THAT -- OF WHAT WOULD HAVE BEEN WITH THE HIGHER AMOUNT? >> WE HAVE NOT. >> Hernandez: OKAY. SO IN LOOKING AT THIS, SO WE'RE GOING TO BE LOSING 536,000 A YEAR, PENDING WHATEVER ANALYSIS YOU PROVIDE, I'M ASSUMING YOU'RE GOING TO SHARE THAT WITH US. >> WE CAN, YEAH. >> Hernandez: I EXPECT THAT. AND -- YOU KNOW, AND -- I ALWAYS THINK OF SPONSORS OR FOR PEOPLE THAT ARE, YOU KNOW, PUTTING FUNDING INTO THIS, PEOPLE COME IN, PEOPLE GO OUT, SO I'M NOT REALLY SURE HOW YOU'RE ADDRESSING THAT, BUT I'LL LOOK AT WHAT YOU'VE GOT. YOU KNOW, I'M CONCERNED THAT -- TO SOME POINTS HERE. YOU ENTERED A POLITICAL SITUATION AND MADE A POLITICAL DECISION AND NOT A FINANCIAL ONE. AND OF COURSE I WON'T KNOW THAT, BECAUSE, ONE, I DON'T EVEN KNOW IF YOU'RE OPERATING IN THE BLACK BECAUSE I HAVEN'T SEEN ANY NUMBERS. NO FINANCIAL PRESENTATION HAS BEEN GIVEN TO US, AND I DON'T KNOW IF -- YOU KNOW, WE ASKED FOR IT AND HEATHER NEVER BROUGHT IT BACK TO US. IS THAT -- OR MAYBE IT'S ELSIE. WERE YOU SUPPOSED TO BRING IT BACK TO US? I KNOW COUNCILMAN ROY HAD MENTIONED THAT HE REALLY WAS UPSET ABOUT THE FINANCIAL NUMBERS WE GOT IN THAT PRESENTATION. >> Hulbert: THE TIME THAT'S ELAPSED SINCE OVG FIRST PRESENTED AND NOW WE HAVEN'T HAD AN OPPORTUNITY TO. WE'VE ALREADY HAD TO BUMP MULTIPLE THINGS OFF OF THE AGENDA BECAUSE OF WHAT HAS BEEN ADDED SO THAT IS SOMETHING WE'LL GET BACK ON THE SCHEDULE TO BRING FORWARD FOR PRESENTATION. >> Hernandez: OKAY. SO -- AND THIS MIGHT BE SOMETHING THAT A COUNCIL ACTION CAN DO, BUT OBVIOUSLY SINCE IT IS A CONTRACTOR FOR THE CITY, THAT THEY'RE SUBJECT TO OUR AUDIT DEPARTMENT'S REVIEW. AND THAT MIGHT BE THE ROUTE THAT WE TAKES A A COUNCIL TO ENSURE THAT THIS PROCESS WAS DONE ■FAIRLY AND APPROPRIATELY IN AND THE NUMBERS MAKE SENSE WITH PROPER ASSUMPTIONS. I FEEL THAT THIS WAS NOT DONE IN GOOD FAITH, THAT THIS WAS, YOU KNOW, A PROCESS THAT -- YOU KNOW, AND LAST TIME YOU GUYS WERE HERE, I SAID YOU NEEDED TO SEND A THANK YOU NOTE TO THOMAS J. HEN HENRY FOR THE VERY LEAST OF PLANTING THAT FLAG ON THE PRICING NEGOTIATION STARTING POINT WAS. I APPRECIATE WHAT HE DID BECAUSE WE WERE MAKING, WHAT, 190,000 THE PREVIOUS YEAR AND NOW WE'RE AT 1.3 WITH HILLIARD AND COULD HAVE HAD 2 MILLION WITH HIM. I DON'T KNOW OF ANOTHER SMALL CITY VENUE THAT GETS THAT KIND OF MONEY, RIGHT? SO, YOU KNOW, REGARDLESS, THOMAS J. HENRY DID US A FAVOR. HE GIVES AWAY TURKEYS AND ALL THAT GOOD STUFF. HOPEFULLY HE'LL CONTINUE TO DO THAT, BUT, YOU KNOW, UNTIL I SEE THE NUMBERS, I'M GOING TO BE SKEPTICAL. OKAY. >> UNDERSTOOD. >> Hernandez: THANK YOU. COUNCILMA N ROY? >> Roy: REBECCA, CAN YOU PUT THE TIME UP. THANK YOU. YOU KNOW, AS I LISTEN TO ALL OF THE CONVERSATION WITH MY COUNCILMEMBERS AND SOME OF THE PUBLIC, THIS -- YOU HAD TO COME INTO THIS KNOWING THAT YOU WERE GOING TO GET A LITTLE BIT OF THE QUESTIONS AND YOU WERE GOING TO BE ON THE FIRING LINE FOR THESE THINGS, BUT IT WAS YOUR JOB. YOU DID YOUR JOB. YOU'VE DONE YOUR JOB BEFORE. HOW MANY TIMES? 39 TIMES, 36 TIMES YOU'VE ENGAGED. YOU HAVE OVER 400 BEVERAGE CLIENTS, 200 OTHER CLIENTS, I MEAN, YOU GUYS ARE -- YOU'RE EXPERIENCED. I HAPPEN TO BE ON COUNCIL IN 2017 AND WAS PART OF THE SMG AND SO -- AND WE CAN SEE THE INCREASE THAT YOU'VE HAD IN TERMS OF OUR REVENUE BECAUSE PEOPLE ARE TALKING ABOUT -- AND I THINK IT IS FROM A BANKING -- FROM AN ACCOUNTING STANDPOINT, I REALLY DO THINK IT WOULD BEHOOVE US -- I WAS DISAPPOINTED IN THE PRESENTATION THAT YOU GUYS GAVE BECAUSE I DIDN'T FOLLOW ANY OF THE FINANCIALS AND THERE WERE SOME HOLES THERE. AND I ASKED SPECIFICALLY TO GET THOSE ITEMS BACK IN FRONT OF COUNCIL AS SOON AS POSSIBLE. I DON'T THINK THE TIME FRAME THAT WE CHOSE WAS AS SOON AS POSSIBLE. AND I THINK HAD WE DONE THAT, THE CREDIBILITY PART WOULD HAVE BEEN BETTER, BUT WE ARE WHERE WE ARE RIGHT NOW, AND SO I THINK IT'S IMPERATIVE THAT WE GET THAT INFORMATION IN THE FUTURE, SO THAT WE CAN JUST UNDERSTAND THE OVERALL STRENGTH. WE ALWAYS HAVE THE ABILITY AS COUNCILMEMBER HERNANDEZ SAID TO UTILIZE OUR AUDIT SYSTEM. THAT'S WHAT IT'S THERE FOR AND THAT'S PART OF THE SYSTEM. ONE OF THE THINGS, THOUGH, THAT -- AND I -- YOU KNOW, I WANT TO THANK EVERYBODY. AND I KNOW THAT WE'VE HAD -- I DON'T KNOW THE NAMES, BUT I'VE HEARD THERE WERE SEVERAL COMPANIES THAT CAME FORWARD AND BID FOR THE NAMING RIGHTS. EACH AND EVERY ONE OF THOSE COMPANIES, I THINK SOME PEOPLE SAID, OKAY, WHEN MR. HENRY PUT HIS NAME IN THE ARENA AND WITH HIS DOLLAR AMOUNT, I THINK THERE ARE PEOPLE THAT PULLED OUT. BUT ONE OF THE THINGS THAT I WANT TO TALK ABOUT, AND, YOU KNOW, I CAN REMEMBER THE TIME WHEN MY WIFE TOLD ME, SHE SAID, DON'T BUY THAT CAR. DON'T BUY THAT CAR BECAUSE THAT CAR IS GOING TO COST YOU A TON IN MAINTENANCE. AND EVEN THOUGH THAT IS -- THIS IS THE CAR THAT YOU WANT, IN THE LONG RUN, IT'S GOING TO COST US. RIGHT? I DIDN'T LISTEN. I WENT OUT AND BOUGHT THE CAR AND I PAID SO MUCH MORE IN TERMS OF MAINTENANCE. WHAT YOU'RE SAYING IS, IS THAT THE FEEDBACK THAT YOU GOT FROM THE INDIVIDUALS THAT ARE CURRENT -- CURRENTLY HAVE CONTRACTS UNDER THE AMERICAN BANK CENTER, THEY BASICALLY -- YOU WERE W WEIGHING THE PROS AND THE CONS F YOU GUYS GO DOWN THIS ROAD, THIS IS GOING TO HAPPEN. IF YOU GO DOWN THE OTHER ROAD, MAYBE THIS WILL HAPPEN, TOO, AND AT THE END OF THE DAY, YOU GUYS HAD TO MAKE THAT DECISION BECAUSE THAT IS THE RESPONSIBILITY WE GAVE YOU, CORRECT? >> THAT'S CORRECT. VERY GOOD ANALOGY. >> Roy: AND I UNDERSTAND THAT. I ENDED UP BUYING THE CAR, I WOULD LIKE TO SAY I LEARNED MY LESSON, BUT I DIDN'T. AND HERE'S WHERE WE'RE AT. THIS ISN'T POLITICAL. I DON'T BELIEVE IT'S POLITICAL AT ALL. I'M GOING TO USE ANOTHER ANALOGY, IT'S ALMOST LIKE WHEN I WAS A BASEBALL COACH OR A BASKETBALL COACH OR A FOOTBALL COACH AND I STARTED A KID, RIGHT? AND AS LONG AS I STARTED THAT KID, THE PARENTS WERE HAPPY. THEY LOVED ME, THEY GAVE ME HIGH FIVES. WHWHATEVER THE CASE IS, ANY TIME I WAS COMING OFF THE FIELD, THEY GAVE ME A SODA OR WHATEVER. THE MOMENT THAT THAT KID DIDN'T START ANYMORE, I GOT CRAP. AND I GOT A LOAD OF CRAP FOR THAT. AND I REALLY FEEL LIKE THAT'S WHAT'S HAPPENING HERE. AND IT'S UNFORTUNATE. THIS ISN'T POLITICAL. AT THE END OF THE DAY, YOU GUYS HAVE TO COME FORWARD AND SHOW US -- WE DON'T HAVE TO GET INTO DETAILS ABOUT WHO'S GOING TO WALK AWAY AND WHO ISN'T GOING TO WALK AWAY, BUT WE WANT TO SEE THE NUMBERS. WE WANT TO SEE THE NUMBERS. WE NEED TO UNDERSTAND WHY ON PAPER YOU FEEL LIKE THIS IS A GOOD DEAL. YOU DON'T HAVE TO SIT THERE AND BETRAY SOMEBODY'S CONFIDENCE BECAUSE THE BOTTOM LINE IS, WE ALL HAVE TO WORK TOGETHER. THOMAS J. HENRY HAS DONE SOME REMARKABLE THINGS IN THIS CITY, THE HILLIARDS HAVE DONE REMARKABLE THINGS IN THIS CITY. YOU KNOW, IF YOU TAKE A LOOK AT IT, THOMAS J. HENRY, YOU CAN'T TURN YOUR HEAD 20° AND NOT SEE HIS NAME SOMEWHERE. HEY, WELL, OKAY, THANK YOU. OUTSIDE OF THE CHAMBER, BUT THAT'S THE WAY IT IS. THIS IS WHERE WE'RE AT. WE JUST NEED TO MAKE SURE THAT WE HAVE THE DOCUMENTATION TO UNDERSTAND WHERE YOU'RE AT SO WE CAN BACK YOU OR WE CAN MAKE SUGGESTIONS TO STAFF AND IMPROVE ON THE THINGS THAT WE NEED TO IMPROVE ON. THANK YOU. >> COUNCILMEMBER, THANK YOU FOR THAT. WE WILL MAKE SURE WE GET THE FINANCIALS TO YOU ASAP, BUT ALSO WE'LL PROVIDE THE DETAILS THAT YOU ASKED ABOUT AS RELATES TO THIS PROCESS. THANK YOU. >> Mayor Guajardo: AND THAT SAID, HEATHER, I WOULD LIKE TO RECEIVE THAT WE RECEIVE THOSE QUARTERLY MOVING FORWARD, THAT WE RECEIVE THEM QUARTERLY SO THAT WE HAVE THAT OVERVIEW OF THE DIRECTION, YOU KNOW, WE'RE IN CURRENTLY AND GOING. A COUPLE THINGS I'D LIKE TO ASK YOU ALL REGARDING SPONSORSHIP PARTNERS AND SUITES, BECAUSE THOSE -- SUITE LEASES, I GUESS THEY ARE. BECAUSE THOSE ARE CRITICAL FOR THIS BUSINESS. SO TELL ME A LITTLE BIT ABOUT WHERE WE WERE, AND YOU CAN MAKE IT QUICKLY, BECAUSE I'M SURE YOU KNOW THE NUMBER, WHERE WE WERE BEFORE AND WHERE WE ARE NOW ON, FOR EXAMPLE, THE -- WHAT WAS IT? THE SPONSORSHIP PARTNERS? >> I BELIEVE THERE WAS ONE SPONSOR AND TWO SUITE HOLDERS PRIOR TO OVG, AND WE ARE NOW AT 22 SPONSORS AND NINE SUITE HOLDERS. >> Mayor Guajardo: OKAY. SO THAT NINE, IT WAS TWO TO 9. SO THAT'S LIKE OVER 60% INCREASE. YEAH. IT'S AN OVER 60% -- >> YEAH, 300 -- FOUR TIMES. >> Mayor Guajardo: GREAT. OKAY. I JUST WANTED TO MAKE THAT POINT. I KNOW WE'RE DISCUSSING NAMING RIGHTS, BUT I THINK THEY'RE -- YOU KNOW, WE HAVE TO LOOK AT THE VERY BIG PICTURE AND WHERE WE HAVE COME TO. SO I APPRECIATE THAT INFORMATION. COUNCILMAN BARRERA? >> Barrera: I JUST WANT TO ECHO COUNCILMAN SCOTT'S COMMENTS WITH REGARD TO UTILIZING LOCAL VENDORS. AND I THINK PARTICULARLY ON SOME LOCAL TYPE EVENTS, SUCH AS THE SEA BANK QUET, CCA BANQUET, TYPICALLY WHEN WE WOULD GO TO THAT, IT WITH US ALMOST LIKE A TASTE OF CORPUS CHRISTI FOR ALL THOSE, AND I THINK THAT WAS PART OF THE EXPERIENCE, AND -- YOU KNOW, WITHIN REASON. SO THAT'S SOMETHING THAT I THINK'S IMPORTANT TO ME AND I APPRECIATE YOU LOOKING AT IT. AND I HOPE YOU COME BACK. I MEAN, I KNOW -- YOU KNOW, I'VE SAID BEFORE, YOU KNOW, I'VE FIRED CUSTOMERS BEFORE, IT'S LIKE, OH, MAN, THOSE ARE -- IT'S A TOUGH DEAL TO HANDLE. YOU KNOW, EARLIER WHEN A CONTRACT WAS MADE THAT I WAS NEGOTIATING IN CENTRAL TEXAS -- WHAT IS IT -- ON A PUBLIC COMMENT, THAT PERSON SAID IF YOU CAN MAKE IT IN CORPUS, YOU CAN MAKE IT ANYWHERE. SO I WANT TO COMMEND YOU FOR YOUR PATIENCE, YOUR PROFESSIONALISM YOUR DIPLOMACY. I KNOW IT'S TURNED INTO A CLASS ACT, YOU KNOW, NOW. ONE OTHER I KNOWSHOW BOXING AND ALL THOSE -- >> I THINK WE'RE AT NINE TOTAL EVENTS THAT WERE GLOBALLY TELEVISED OR STREAMED IN THE FACILITY OVER THE LAST TWO AND A HALF YEARS. . >> Barrera: THAT'S THE WHOLE THING. THERE'S A LOT OF VALUE THERE, AND IT STILL CONTINUING TO GO UP, THERE'S NINE EVENTS THAT WERE GLOBALLY TELEVISED. I TALKED ABOUT THE SHOWTIME BOKSZING AND WHAT JOHNNY FILA PEL LOW HAS DONE, YOU KNOW, PBR GETS TELEVISED AND THE RODEO GETS TELEVISED. SO I THINK THAT'S A THING. IT'S A POINT OF PRIDE THAT WHEN YOU SEE -- THAT'S ONE REASON I WAS ADVOCATING FOR CORPUS CHRISTI CONVENTION CENTER AND ARENA BECAUSE OF THE FACT THAT WE WERE GOING TO GET THAT GLOBAL ATTENTION. SO ANYWAY, THANK YOU VERY MUCH. I APPRECIATE ALL THE WORK YOU GUYS DID. I KNOW IT WAS HARD. I KNOW IT WAS HARD. REALLY HARD. THANKS. >> Mayor Guajardo: ONE LAST QUESTION FOR MICHAEL MAYBE, WHEN DOES THE FACILITY GET PAID OFF? OR DO WE KNOW? HEATHER. >> HEATHER MIGHT HAVE THE ANSWER. >> Hulbert: SO ACTUALLY, THE -- SO THE DEBT THAT WAS BACKED BY HOTEL OCCUPANCY TAX HAS ALREADY BEEN PAID OFF IN FULL, IT WAS PAID A COUPLE YEARS AGO, AND THEN FOR THE ARENA, I BELIEVE WE WILL BE MAKING THE LAST PAYMENT ON THE MARINA -- THE ARENA DEBT IN AUGUST, I BELIEVE. SO IT WILL BE -- NO, THAT'S FOR THE -- NO, BECAUSE THE SALES TAX REVERTS TO THE NEW PURPOSE IN OCTOBER 1, SO THE LAST PAYMENT, I BELIEVE, IS IN AUGUST. >> Mayor Guajardo: AUGUST OF. >> Hulbert: OF THIS YEAR. >> Mayor Guajardo: OF THIS YEAR TO PAY IT OFF. OKAY. COUNCILMAN ROY? >> Roy: SO ONE OF THE THINGS THAT -- I LOST MY TRAIN OF THOUGHT. >> Mayor Guajardo: SORRY, THE MAYOR ASKED ME A QUESTION. I LOST MY TRAIN OF THOUGHT. >> Roy: I'M GOING TO CONCEDE. . >> Mayor Guajardo: HEATHER, THANK YOU FOR THAT. WELL, I ANY WE'VE ALL SPOKEN ON THE -- THIS PARTICULAR ITEM, SO WE WILL GO AHEAD AND MOVE ON AND THAT WOULD BE TO ITEM NUMBER 19, WE ALREADY DID ITEM 20 EARLIER. >> Campos: PUBLIC COMMENT? >> Mayor Guajardo: YOU'RE RIGHT. THANK YOU. YES, WE HAVE PUBLIC COMMENT. I'M GOING TO OPEN PUBLIC COMMENT FOR ITEM NUMBER 18. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO COME UP AND SPEAK ON ITEM 18? >> HELLO. MICHAEL MILLER, SORRY, 51 CAMDEN PLACE, CORPUS CHRISTI, TEXAS. WHEN I HEARD THAT THERE WAS PUSHBACK ON THE NAMING RIGHTS, I GUESSED IT WAS LIKELY COMING FROM THE BUC DAYS FOLKS. AFTER SPEAKING WITH SOME OF YOU IT WAS CONFIRMED INCLUDING DETAILS OF SOMEONE HIGH UP IN THE BUC DAYS COMMISSION CALLING SOME OF YOU AND READING YOU THE RIOT ACT. HAVING SPONSORS BAIL OUT MAY BE A SMALL CONCERN, BUT I CAN ASSURE YOU THERE WILL BE PLENTY TO TAKE THEIR PLACE. I HAVE BEEN ON A WAITLIST SINCE 2022. I HAD -- I HAD RUN INTO A FRIENDLY BUC DAYS STAFFER THAT ASKED WHY I DON'T GET A SUITE. THIS WAS BACK IN 2022. I SAID GOOD QUESTION. I NEED TO DO THAT. MY PEOPLE LOVE TO GO TO THE RODEO, WE ENJOY IT. IT'S GOOD FOR THE COMPANY. IN 2022, WE HAD RECENTLY COMPLETED CONSTRUCTION ON THE VIP SUITE, I MENTIONED THAT I'D LOVE TO RENT IT. SHE REPLIED THAT CITGO HAD RECENTLY CALLED AND CANCELED THEIR RESERVATION. SHE TOLD ME THE PRICE AND I TOLD HER THAT I WOULD TAKE IT. SHE WAS TO FOLLOW UP WITH ME LATER THAT WEEK, CRICKETS. AFTER A FEW E-MAILS BACK AND FORTH, A FEW DAYS LATER SHE RESPONDED THAT THE SUITE WAS NO LONGER AVAILABLE. I WAS THEN ASKED -- I THEN ASKED HER ABOUT, WELL, ARE THERE ANY OTHER SUITES? SHE SAID NO, IT'S BEEN A TOUGH YEAR FOR SUITES. I SAID OKAY. HOW ABOUT A BLOCK OF TICKETS? WELL, YOU CAN GO TO TICKETMASTER FOR THAT. I FOUND OUT THROUGH OTHER CHANNELS LATER ON THAT THEY FOUND OUT THAT IT WAS ME AND THAT IT WAS FOR MY COMPANY AND THAT I WAS PUSHED TO THE SIDE. BOTTOM LINE, IF ANYONE BACKS OUT, THERE WILL BE PLENTY TO FILL THE SUITES AND I WILL OFFER MY FIRST $5,000 RIGHT NOW TO BUY A SUITE. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. MILLER. ANYONE ELSE? >> [OFF MIC] >> YOUR AGENDA ITEM SAYS TERMINATE THE PEOPLE HERE, OVG, AND THEN TAKE OVER THE NAMING RIGHTS. THAT'S WHAT YOUR AGENDA ITEM. MS. SALDA ÑA, I THINK YOU'VE SPOKEN ON THIS ITEM. >> I SPOKE ON THE NAMING. I'M SPEAKING ABOUT THE ITEM. >> City Secretary: IT'S THE SAME SUBJECT. >> TO GET RID OF THEM. THAT'S WHAT THE UM THE SAYS. >> City Secretary: WELL, IT'S THE SAME SUBJECT, SO... >> WELL... >> Mayor Guajardo: THE SAME SUBJECT. >> Risley: YEAH, THIS APPEARS TO BE THE -- IT LOOKS PRETTY CLEARLY THE SAME SUBJECT. I MEAN, IT'S... >> OKAY. >> Mayor Guajardo: THANK YOU, MS. SALDAÑA. >> [OFF MIC] >> [INDISCERNIBLE] 1037 PONDER, I AM SPEAKING AS A CITIZEN OF CORPUS AND ALSO I DO WORK A LOT WITH THE VENUE AS PHOTOGRAPHER. BUT I THINK ONE THING THAT WE'RE FORGETTING HERE IS FORGET THE NAMING RIGHTS, FORGET EVERYTHING ELSE, I THINK WE'RE FORGETTING ABOUT THE EMPLOYEES, THE 200 EMPLOYEES THAT WORK AT THE AMERICAN BANK CENTER, WITH OVG. TWO AND A HALF YEARS AGO, THEY ALL HAD TO REAPPLY FOR THEIR JOB AGAIN. BEFORE THAT, THEY WERE WITH -- HOW MANY TIMES HAVE THEY CHANGED IN THE LAST TWO, THREE, FOUR, FIVE YEARS AS MANAGING COMPANIES? YOU HAVE 200 EMPLOYEES WHO ARE IN CORPUS CHRISTI, 200 EMPLOYEES THAT LIVE IN CORPUS, THAT PAY TAXES IN CORPUS, THAT THEIR KIDS GO TO SCHOOL HERE IN CORPUS AND WE'RE NOT TALKING ABOUT THEM AND HOW ALL THIS IS AFFECTING THEM. AND HAVING TO -- WHAT ARE WE GOING TO DO TO THEM AGAIN WHEN WE SAY, YOU KNOW WHAT? WE CANCELED YOUR CONTRACT, WHERE DO WE GO NOW? AND WHEN YOU GO TO THE AMERICAN BANK CENTER, WHEN YOU GO TO THE VENUES AND SOMEONE'S SCANNING YOUR TICKET, SOMEONE'S POURING YOUR CROWN AND COKE, SOMEONE'S LOOKING FOR YOUR SEAT, THOSE ARE PEOPLE THAT LIVE HERE, WORK HERE, PAY HERE, KIDS GO TO SCHOOL HERE, THEY'RE ALL OF OUR FRIENDS, YOU KNOW THE PEOPLE THAT GO TO -- YOU KNOW THEM WHEN YOU GO TO THE VENUES, YOU RECOGNIZE THEM, THEY THEER THE SAME LADIES, MEN, SECURITY GUARDS AT ALL THE EVENTS. I THINK WE'RE FORGETTING ABOUT THEM WHEN WE TALK ABOUT THAT. THAT'S JUST ABOUT CONTRACTS AND YOU'RE NOT DOING YOUR JOB OR WHO'S NOT DOING THE JOB, BUT THESE PEOPLE HAVE GONE THROUGH -- THE EMPLOYEES HAVE GONE THROUGH SO MUCH IN THE LAST TWO AND A HALF YEARS AND BEFORE THAT WITH SMG, ASM, NOW OVG, AND I SEE THEM ALL, I SEE THEM ALL THE TIMI TIME, I THINK SOMETHING TO CONSIDER, THINK ABOUT NOT ONCE HAVE I HEARD ABOUT ANY OF THE PEOPLE THAT ACTUALLY WORK THERE. SO THAT'S MY CONCERN. >> Mayor Guajardo: THANK YOU, MR. MUÑOZ. ANYONE ELSE? ANY OTHER PUBLIC COMMENT? >> MY NAME IS ELOISE [INDISCERNIBLE] I LIVE IN DISTRICT 5. I KNOW ALL OF YOU. IT'S A HARD SEAT TO BE IN, IT'S A TOUGH JOB THAT YOU GUYS DO AND I COMMEND ALL OF YOU FOR GOING THROUGH THIS PROCESS. THE THING THAT BOTHERS ME THE MOST ABOUT THIS DEAL IS THAT THERE'S BEEN SOME COMMENTS MADE ABOUT THOMAS J. HENRY AND THE FACT THAT SOME PEOPLE WILL BACK OUT AS A RESULT. I DON'T THINK THAT SHOULD BE CONSIDERED ANYWHERE IN THIS PROCESS. SOME OF YOU SAY, OH, WELL, THEY'RE MY FRIENDS. WELL, TELL US WHO YOUR FRIENDS ARE. I WILL -- TELL ME WHO YOUR FRIENDS ARE AND I'LL TELL YOU, I'M NOT POINTING AT YOU, BUT I'M LOOKING AT YOU, OKAY, AND I CAN TALK TO EACH ONE OF YOU AND WE CAN HAVE A LONG CONVERSATION ABOUT THIS, BUT I DON'T AGREE THAT YOU GUYS SHOULD SIT UP THERE. THE GUYS HAVE OFFERED TO ALLOW YOU TO NAME -- TO GIVE THE NAMING RIGHTS BACK TO YOU GUYS. THIS WOULD ALLOW THE PROCESS TO WORK. IT DOESN'T MEAN THAT TJ'S GOING TO GET IT, IT JUST MEANS THAT THERE WILL BE A PROCESS THAT ALL OF YOU ARE COMFORTABLE WITH, BECAUSE SIX OF YOU, AND MAYBE NOW FIVE, ARE NOT COMFORTABLE. AND I HOPE THAT YOU MAKE THE RIGHT DECISION. I THINK THERE'S MONEY ON THE TABLE, THERE'S A LOT OF SHORTFALLS IN OUR BUDGET AND THERE'S MORE TO COME. I KNOW THAT PROPERTY TAXES ARE FIXING TO GET A HIT, SALES TAX HAS ALREADY TAKEN A HIT, AND NOW WE'VE GOT THIS THING WITH THE HOUSING AUTHORITY. WE HAVE A LOT OF ISSUES. AND I'M NOT SAYING THAT TJ SHOULD BE THE ONE TO GET IT. I'M SAYING THAT THE PROCESS NEEDS TO BE FAIR AND WE SHOULD NOT USE THIS DEAL ABOUT, OH, THIS GUY -- SOMEBODY DOESN'T LIKE HIM, HE'S NOT IN MY CIRCLE, HE DIDN'T GIVE ME ANY MONEY. COME ON. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. SALAZAR. ANYONE ELSE? OKAY. WE'RE GOING TO GO AHEAD AND CLOSE PUBLIC COMMENT. COUNCILWOMAN PAXSON, DID YOU HAVE A -- >> Paxson: YES. THANK YOU, MAYOR. YES, REAL QUICK, TAKING ALL OF THAT INTO CONSIDERATION, TAKING ALL OF THE DISCUSSION WE'VE HAD INTO CONSIDERATION, TAKING THE INFORMATION THAT WE HAVE AND STRONGLY THE INFORMATION THAT WE DON'T HAVE IN FRONT OF US, I'M NOT SAYING IT DOESN'T EXIST, BUT WE HAVEN'T SEEN IT, WE -- THIS IS AN AGENDA ITEM. SO WHAT I'M THINKING IS PERHAPS WHAT WE DO IS WE POSTPONE THIS ITEM, PUSH IT BACK, GIVE US SOME TIME, BECAUSE I DON'T FEEL LIKE ANY OF US HAVE THE INFORMATION IN FRONT OF US THAT TELLS US THE FULL STORY. AND MAYBE THAT IS SOMETHING THAT WE TAKE INTO CONSIDERATION I KNOW COUNCILMAN CANTU BROUGHT IT UP, A PUBLIC COMMENTER BROUGHT IT UP, MAYBE THE NAMING RIGHTS IS SOMETHING WE CONSIDER DOES THE CITY REEVALUATE BECAUSE THAT'S WHAT THIS ITEM IS, IS WHAT DO WE LOOK AT HERE? SO WHAT I THINK WE SHOULD DO IS POSSIBLY MOVE THIS -- IT WAS CONSIDERATION OF THE OVG RELATIONSHIP. THAT'S WHERE I'M SPEAKING, AND IT'S VAGUE, THE WAY THIS IS WRITTEN, MOVE THIS UNTIL WE CAN GET A PRESENTATION ON FINANCES. AND I KNOW THAT WE'RE STILL TRYING TO TIE IN THE PREVIOUS VENDOR, BUT THERE'S DATD FOR NOW. THERE'S DATA THAT REPRESENTS THAT THIS COMPANY HAS DONE X, Y Z. THAT'S WHAT I'M SPEAKING TO. SO IF WE CAN BRING THAT BACK, IT GIVES ALL OF US THE PICTURE OF WHAT WE'RE LOOKING AT, WHAT WE'RE DEALING WITH, WHAT'S IN BRACK AND WHITE AND WE CAN GO FROM THERE. BECAUSE QUITE FRANKLY, I JUST DON'T HAVE IT. I DON'T HAVE IT IN FRONT OF ME, AND I DON'T THINK IT'S EASY FOR US TO HAVE ANY KIND OF FULL PICTURE OTHER THAN WHAT YOU'VE HEARD HERE IS WE WANT TO, WE WANT TO BELIEVE ALL THE THINGS, BUT RIGHT NOW ALL WE SEE IS $7 MILLION THAT JUST FELL OFF THE TABLE. AND I AGREE WITH ALMOST EVERYONE THAT HAS COME UP HERE AND SAID WE DON'T WANT TO MAKE DECISIONS BASED ON PEOPLE TRYING TO HOLD OUR HANDS TO DECIDE HOW WE SAY OR ELSE. WE NEED TO MAKE A GOOD BUSINESS DECISION, AND I WANT TO BELIEVE YOU, THAT THIS IS A GOOD BUSINESS DECISION, BUT I DON'T HAVE THE DATA HERE. SO IF WE PUSH THIS BACK, BRING THE DATA, HAVE ANOTHER PRESENTATION, HAVE Y'ALL -- WHICH HAVE BEEN VERY GRACIOUS, I AGREE WITH MY COLLEAGUE WHO SAID Y'ALL HAVE BEEN VERY GRACIOUS, BUT DO IT WITH A COMPLETE PICTURE, BECAUSE WE JUST DON'T HAVE THAT TODAY. >> Mayor Guajardo: OKAY. SO I -- I MEAN, WE JUST HEARD THE ITEM. SO I THINK WHAT YOU'RE SAYING IS PUT -- I THINK YOU WOULD JUST PUT SOMETHING ELSE ON THE AGENDA AT A LATER DATE. >> City Secretary: WELL, THERE'S NO ACTION, RIGHT? >> Mayor Guajardo: THERE'S NO ACTION. WHAT ARE WE POSTPONING. >> City Secretary: IF YOU JUST WANT TO -- >> Vaughn: I'M TRYING TO FIGURE OUT WHAT YOU'RE DOING, BECAUSE WE'RE NOT GOING TO GO BACK AND SAY TAKE AWAY -- THEY'VE ALREADY TOLD SOMEONE THEY HAVE THE NAMING RIGHTS. >> Paxson: YES. >> Vaughn: YOU'RE NOT TALKING ABOUT THAT. I JUST WANTED TO MAKE SURE. WE'RE GOING TO BE A CLOWN SHOW IF WE DO THAT. THEY'VE MADE A DECISION, LET'S STICK WITH IT SO WE CAN MOVE FORWARD. THE OTHER STUFF I THINK WE ASK HEATHER FOR, THE INFORMATION. SO TO ME, YOU WOULD GET THE INFORMATION. IF YOU STILL WANT TO REVISIT, THEN PUT IT BACK ON THERE. >> Mayor Guajardo: RIGHT. >> Vaughn: I DON'T THINK THERE'S ANY REASON TO POSTPONE IT, I THINK YOU JUST COME BACK WITH ANOTHER AGENDA ITEM IF THAT'S WHAT YOU WANT. >> Paxson: THAT'S FINE. IF IT'S NOT THIS EXACT ONE, I'M JUST SAYING WE HAD A DISCUSSION HERE TODAY AND I APPRECIATE THAT WE DID BUT I DIDN'T FEEL LIKE ANY OF US HAD THE FULL PICTURE BECAUSE WE'RE MISSING INFORMATION. I DO THINK WH WE NEED TO. >> Mayor Guajardo: AND THEY HAVE DIRECTION NOW TO BRING BACK FINANCIALS AND SUCH AND THEN WE CAN EVALUATE THAT. >> Paxson: RIGHT, RIGHT. THANK YOU. >> Mayor Guajardo: AND THAT WOULD JUST BE A WHOLE NEW ITEM, I THINK. >> Paxson: YES. >> Mayor Guajardo: YOU HAVE A -- >> Cantu: QUICK QUESTION, HEATHER, CAN WE MAKE SURE THIS IS ON THE AGENDA, YOU GUYS PUT THIS ON THE AGENDA IN THE NEXT COUPLE MONTHS. >> Hulbert: YEAH, NO. NO NO. OUR GOAL WOULD BE WE'D HAVE SOMETHING TO Y'ALL BEFORE THE END OF JULY. >> Cantu: END OF JULY? >> Hulbert: YEAH. IT WAS KIND OF SERENDIPITOUS, I WAS ACTUALLY COMMUNICATING WITH DANNY, WE NEED TO PUT TOGETHER A QUARTERLY FINANCIAL UPDATE ALONG WITH PERFORMANCE MEASURES AND THINGS LIKE THAT, SO WE'RE ALREADY MOVING TOWARDS THAT. >> Cantu: YOU HAVE MY REPORTS BY THE END OF THE WEEK, CORRECT. >> Hulbert: YES. >> Mayor Guajardo: THANK YOU, HEATHER. WE'RE GOING TO GO AHEAD AND MOVE ON TO ITEM 19. NOW, ITEM 19, DID WE HAVE ANYTHING ON THAT, COUNCILMAN. >> Vaughn: IS THIS MINE? >> Mayor Guajardo: THAT'S YOURS. >> Vaughn: FIRST OFF, THIS IS NOT ABOUT STOPPING DESAL. I WANT TO MAKE THAT REALLY CLEAR. THE INSINUATIONS HAVE BEEN THAT IT IS. IT IS NOT. I WANT TO SPEAK DIRECTLY AND OPENLY WITH OUR RESIDENTS ABOUT THE RESOLUTION BEFORE US TODAY TO RESCIND [INDISCERNIBLE] WITHOUT COMING BACK TO THIS COUNCIL FOR APPROVAL. LET ME REMIND EVERYONE THIS COUNCIL WAS ELECTED TO PROVIDE OVERSIGHT ANDGOV NANS ON BEHALF OF OUR CITIZENS. ING WE ARE THE ELECTED BODY RESPONSIBLE FOR MAKING SURE TAXPAYER DOLLARS ARE SPENT WISELY AND WITH ACCOUNTABILITY. WE'RE ELECTED TO PROVIDE OVERSIGHT ON SPENDING AND GOV GOVERNANCE FOR THE CITY. WE ALREADY KNOW THAT THE COST OF THE DESAL PROJECTS ARE TRENDING HIGHER THAN PREVIOUSLY EXPECTED. NO ONE CAN ARGUE WITH THAT. AND ANY BUSINESS YOU CONTROL, YOUR COST EVERY STEP OF THE WAY. YOU DO NOT HAND OVER A BLANK CHECK. THIS IS WHY I STRONGLY SUPPORT RESCINDING THE PRIOR RESOLUTION, THE CITIZENS OF CORPUS CHRISTI DESERVE RESPONSIBLE OVERSIGHT OF THIS PROJECT AND TRANSPARENCY ON HOW THEIR MONEY IS BEING SPENT. I WAS GOING TO TABLE IT OR POSTPONE IT BECAUSE THE CITY MANAGER WASN'T HERE AND I'M SORRY HE'S NOT. UNTIL THE CHAMBER GOT INVOLVED AND THEY CAUSED CHAOS BY USING WORDS SUCH AS "UNDERMINING" OR "STALLING PROGRESS." THAT SHOULD NOT HAVE HAPPENED, THAT WAS BULLYING CERTAIN COUNCILMEMBERS. I KNOW I WAS ON THE PHONE MOST OF THE WEEKEND AND I HAVE THE GROUP THAT I CALL THE OLD WHITE MEN THAT THEY THEY RUN THIS CITY AND THEY SENT ME TEXT, TELLING ME WHAT THEY WERE OR WHATNOT GOING TO DO. THAT IS UNFOUNDED. YOU SHOULD NOT BE DOING THOSE THINGS, THEY DON'T RUN THE CITY, FIRST OF ALL. SO ANYWAY, IT'S TO MAKE SURE WE HAVE CHECKS AND BALANCES AND I CAN'T BELIEVE THAT WE WOULD GIVE THE AUTHORITY TO ANYONE TO SPEND THAT KIND OF MONEY AND IT'S NOT THAT I DON'T STRUS MR. ZANONI, BUT I THINK THAT WE HAVE TO DO WHAT'S RIGHT FOR THE CITIZENS AND IT'S OUR RESPONSIBILITY TO GET THINGS APPROVED. SOME WILL SAY, THIS IS GOING TO HOLD US BACK. NNO, IT'S NOT. IT'S NOT GOING TO HOLD US BACK, WE APPROVE MILLIONS OF DOLLARS ALL THE TIME. SO YOU'RE ORGANIZED, YOU BRING IT TO US AND YOU ORDER WHAT YOU WANT, BUT IT HAS TO BE APPROVED BY THE COUNCIL. THIS IS NOT ABOUT STOPPING DESAL. >> SECOND. >> Mayor Guajardo: SO YOU'RE MOVING FORWARD, COUNCILWOMAN? SWOM, I'M SORRY, YOU'RE MOVING FORWARD. >> [OFF MIC] >> Mayor Guajardo: SO I THINK THIS IS WHERE WE NEED OUR STAFF TO EXPLAIN ANY PERTINENT INFORMATION ON SUCH. >> MAYOR, MAYBE I'LL JUST START HERE QUICKLY. >> Mayor Guajardo: SURE. >> IF COUNCIL APPROVES THIS ACTION TODAY, TALKING TO LEGAL AND MILES, WE CAN ASK HIM HERE IN A SECOND, WE'RE UNSURE OF THE CONSEQUENCES OF THIS ACTION. OUR CONTRACT CURRENTLY WITH KIEWIT IS A HUGE DOCUMENT, SO IT WILL TAKE LEGAL HOURS AND HOURS TO GO THROUGH THAT DOCUMENT TO UNDERSTAND THE CONSEQUENCES OF THIS ACTION TODAY IF THAT HAPPENS. SO I JUST WANTED TO START THERE QUICKLY AND IF YOU HAVE ANY QUESTIONS FOR MILES, HE'S HERE. >> [OFF MIC] >> Mayor Guajardo: WELL, LET'S LET DREW EXPLAIN. >> Molly: DO YOU WANT TO TAKE THE CONTRACT ELEMENT, BRETT? >> BRETT VAN HAZEL, SO THE AUTHORIZATION WAS FROM JUNE OF LAST YEAR, WHICH GAVE THE CITY MANAGER THE AUTHORITY TO EXECUTE AN AGREEMENT WITH A DESIGN-BUILDER, WHICH WE DID IN DECEMBER OF LAST YEAR. COUNCIL APPROVED -- WELL, NOT COUNCIL. THE CITY EXECUTED AN AGREEMENT WITH KIEWIT, I BELIEVE IT WAS DECEMBER 2ND, AND THAT PUT US INTO THE PHASE 1 OF THE PROJECT, WHICH WAS THE PLANNING DESIGN ALL THE WAY THROUGH GMP. AND UNDER THAT CONTRACT, THE AUTHORITY WAS DELEGATED TO AN OIC, WHICH IS AN OFFICER IN CHARGE WHICH AT THE TIME WAS DANIEL DANG, IT'S SINCE BEEN CHANGED TO ME. SO THE CITY MANAGER DOESN'T HAVE AUTHORITY TO EXECUTE AGREEMENTS, AMENDMENTS WITH KIEWIT. IT ALL FALLS ON ME TO EXECUTE AND MANAGE THIS PROJECT. SO I JUST WANTED TO PUT THAT OUT THERE. SO IF WE -- IF WE RESCIND THAT AUTHORITY, AND I THINK THAT'S KIND OF WHAT MICHAEL WAS LEADING TO, IS WE DON'T FULLY UNDERSTAND THE DOWNSTREAM IMPACTS OF THAT. AND THAT'S WHY MILES HASN'T HAD AN OPPORTUNITY TO GO THROUGH AND DO A LEGAL REVIEW OF THE ENTIRE DOCUMENT. WE JUST RECEIVED THIS ON FRIDAY, SO HE HASN'T GONE THROUGH AND DONE THAT FULL EVALUATION. I CAN TELL YOU FROM MY SIDE, DEPENDING ON WHAT YOU DETERMINE TO BE AN APPROPRIATE LEVEL OF SPENDING, YOU KNOW, ON TYPICAL PROJECTS, WE HAVE A CERTAIN THRESHOLD THAT WILL TRIGGER A COUNCIL ACTION, SO DEPENDING ON, YOU KNOW, WHAT COUNCIL DECIDES IT WOULD HAVE IMPACT ON THE TIMING OF THE PROJECT, BECAUSE THERE'S A PROCESS, RIGHT, GETTING IN FRONT OF THIS BODY TO REQUEST CERTAIN ACTIONS ON THE CONTRACT, SO THERE WILL BE A TIME IMPACT ON GETTING THOSE DECISIONS MADE, DEPENDING ON WHAT PHASE OF THE PROJECT WE'RE IN, SO THAT IS AN ABSOLUTE CONSEQUENCE OF, YOU KNOW, PUTTING A BODY LIKE THIS IN CHARGE OF THOSE TYPE OF ACTIONS. AND THEN OVER TIME, THAT HAS A COST. SO I COULDN'T TELL YOU WHAT THE COST WOULD BE. I CAN TELL YOU WHAT THE TIME IMPACT WOULD BE, BUT I CAN TELL YOU THERE WOULD ABSOLUTELY BE AN IMPACT IF THIS BODY NOW BECOMES THE DECISION-MAKER FOR AMENDMENTS. SO -- BUT, AGAIN, WE WOULD NEED A FULL REVIEW TO REALLY UNDERSTAND AND FULLY UNDERSTAND WHAT YOU'RE ASKING TO HAVE DONE, BUT THERE WILL ABSOLUTELY BE IMPACTS TO TIME AND COST IF WE TAKE AWAY THE AUTHORITY AT STAFF >> Vaughn: THEY GAVE YOU THE AUTHORITY? >> YES. SO, AT THE TIME OF THE RESOLUTION, YOU GAVE THE CITY MANAGER OR DESIGNEE THE AUTHORITY -- >> Vaughn: NOT ME. >> COUNCIL GAVE THE AUTHORITY TO ENTER INTO AGREEMENT, AND THEY DID. AND THAT AGREEMENT WAS DONE IN DECEMBER OF LAST YEAR. AND WHEN THE CONTRACT WAS WRITTEN AND SIGNED OFF BY KIEWIT AND THE CITY, THEY ASSIGN AN OFFICER IN CHARGE. THIS IS NO DIFFERENT FROM WHAT YOU DO WITH EVERY SINGLE CONSTRUCTION CONTRACT WITH THE CITY. YOU HAVE A DESIGNEE, WHICH IN ENGINEERING IT'S CALLED THE OAR, WHICH IS THE OWNER-AUTHORIZED REPRESENTATION. JOE JOHNSON IS THE CITY'S OAR FOR ALL CONSTRUCTION PROJECTS THAT GO THROUGH ENGINEERING. HE PERFORMS IN THE SAME FUNCTION THAT I AM FOR THIS PROJECT. BUT ON THIS ONE I AM THE OFFICER IN CHARGE RESPONSIBLE FOR EXECUTING THE CONTRACT. >> Vaughn: BUT EVEN WITH THE CITY CONTRACTS THEY STILL HAVE TO COME BEFORE THE COUNCIL. THIS DOESN'T MAKE SENSE TO ME THAT YOU HAVE A COMPANY THAT WE'VE NOT EVEN SAID YES. I KNOW THEY'VE SAID YES TO PART OF IT. BUT THE FINAL YES OR NO WILL BE IN JANUARY. 60% IS WHAT I'VE BEEN TOLD. NOT SAYING WE'RE NOT GOING TO DO IT. IT'S HARD FOR ME TO BELIEVE THAT KIEWIT CAN DECIDE WHO APPROVES THIS MONEY. THAT DOESN'T MAKE SENSE TO ME AT ALL. LET SOMEBODY ELSE TALK. IT JUST MAKES NO SENSE TO ME AND I THINK THAT PART OF IT YOU COULD HAVE LOOKED UP. KNOWING IT WAS ON THERE ON FRIDAY SEEMS LIKE YOU COULD HAVE AT LEAST LOOKED THAT PART UP, MILES. YOU'RE SMART. YOU KNOW WHERE THAT AREA'S AT. >> Risley: I'D LIKE TO POINT OUT WHAT THE RESOLUTION WE'RE TALKING ABOUT. THE CITY MANAGER OR DESIGNEE IS AUTHORIZED TO EXECUTE A CONTRACT FOR THE INNER HARBOR SEA WATER DESALINATION TREATMENT PLANT PROJECT WITH THE TOP RANKED PROPOSER AND TO PROFESSIONAL SERVICES AGREEMENT WITH THE LEAD DESIGNER DESIGN-BUILD CONTRACT AMENDMENTS AND CONTRACTS TO ACQUIRE PROPERTY IN A TOTAL AMOUNT NOT TO EXCEED $138 MILLION. SO THAT'S NOT JUST A SINGLE -- BECAUSE IT'S A DESIGN-BUILD. IT'S A SERIES OF CONTRACT AMENDMENTS THAT THEN ARE DESIGNED TO SPEED THINGS UP FASTER THAN YOU WOULD HAVE WITH THE TRADITIONAL DESIGN-BID-BUILD PROCESS. SO YOU SPEND A COUPLE OF YEARS DESIGNING A PROJECT AND THEN YOU SPEND SEVERAL MORE YEARS. THEN YOU SPEND SIX MONTHS BIDDING IT AND SEVERAL MORE YEARS BUILDING IT. IT'S DESIGNED TO SHORTCUT -- >> Vaughn: I UNDERSTAND WHAT THAT IS. HERE'S MY POINT. WE'VE GOT $138 MILLION AND WE HAVEN'T EVEN HIT THE BUTTON TO MAKE SURE THAT WE'RE DOING THAT. WE CAN AFFORD IT BECAUSE WE DON'T KNOW WHAT IT'S GOING TO COST. IT WAS $750 MILLION, WE'RE UP TO 1.2 OR WHATEVER NOW. WHAT I THINK THEY'RE DOING IS THEY'RE BUYING PARTS, WHATEVER THEY NEED AHEAD FOR THE PROJECT THAT HASN'T EVEN BEEN APPROVED FULLY. AND THAT'S WHAT MY CONCERN IS. I KNOW WHEN I STARTED HERE IT WAS $5 MILLION, $18 MILLION, SHOT UP TO $35 MILLION. THREE DIFFERENT CONTRACTS. WE CITIZENS SHOULD BE CONCERNED ABOUT THAT. >> Risley: SOME OF THESE PARTS THAT THEY'RE TALKING ABOUT ARE VERY LONG LEAD ITEMS. LIKE ELECTRICAL EQUIPMENT. SOME OF IT'S SEVERAL YEARS OUT. YOU HAVE TO ORDER AHEAD OF TIME. >> Vaughn: I GET THAT BUT IT'S GOING TO TAKE YEARS TO BUILD THIS PLANT ANYWAY AND THAT'S WHY WE'RE TRYING TO FIND OTHER WATER SOURCES. WHAT CONCERNS ME IS THIS WASN'T IMPORTANT ENOUGH FOR YOU TO GET PREPARED FOR IT. I'M NOT TRYING TO BE UGLY AND I KNOW YOU HAVE LOTS TO DO BUT THIS IS AN IMPORTANT THING YOU KNEW WHAT WE WERE GOING TO TRY TO DO, TRY AND STOP THE SPENDING. >> Risley: WE DON'T HAVE A FULL LIST OF ALL THE CONTRACTS, ALL THE AMENDMENTS THAT WE HAVE EXECUTED. AND THAT WE'RE GOING TO EXECUTE AND THE TIME IMPACTS OF SLOWING DOWN THAT EXECUTION. SO THAT'S THE CHALLENGE. >> Vaughn: YEAH. WE'RE JUST GOING TO KEEP ADDING CONTRACTS AND SPENDING MORE MONEY AND WE DON'T EVEN KNOW WHERE WE'RE GOING. WE HAVE NO CLUE WHAT THIS THING'S GOING TO COST. IF WE CAN EVEN AFFORD IT. I'M HOPING WE CAN BUT WE DON'T KNOW BECAUSE THEY JUST KEEP ADDING TO IT. AND THAT'S MY CONCERN. SO ANYBODY ELSE WANT TO TALK, GO AHEAD. >> Mayor Guajardo: I THINK YOU ALL NEED TO EXPLAIN HOW THIS WORKS, BECAUSE THIS IS A VERY, VERY COMPLEX AND DIFFERENT TYPE OF CONTRACT. WE NEED WATER. WE ARE RUNNING OUT OF WATER. SO WHEN THIS DECISION WAS MADE TO AUTHORIZE THE CITY MANAGER TO GO SPEND MONEY ON DESALINATION, THAT'S EXACTLY WHAT IS HAPPENING. SO IT'S LIKE BUILDING A HOUSE. YOU DON'T PAY A CONTRACTOR $30,000, HERE, GO PUT THE ROOF ON. AND THEN COME BACK AND LET ME GIVE YOU ANOTHER CHECK FOR THE FLOORS. AND THEN ANOTHER CHECK FOR THE CABINETRY. THERE'S A PRICE ESTABLISHED. THE THING I WANT TO MAKE VERY CLEAR IS THAT IN AUTHORIZING THAT SPENDING, WE ALL -- IT WAS FOR DESAL. IT IS FOR DESAL. AND THIS IS A PROCESS THAT, YOU KNOW, IT'S HISTORICAL. WE'LL NEVER BUILD -- I MEAN, WE WOULD BE THE ONLY SEAWATER DESALINATION FACILITY, MUNICIPALLY OWNED IN THE COUNTRY. IT'S NOT LIKE WE CAN SAY, WELL, HOW'D THEY DO IT OR HOW'D THEY DO IT? IT'S A VERY COMPLEX CONTRACT OR PROCESS. SO IT'S KIND OF -- AND I UNDERSTAND YOUR POINT, COUNCILWOMAN, BECAUSE IT'S KIND OF LIKE THE CHICKEN OR THE EGG. HOLD ON. WE KNOW WHERE THE PRICE TAG WAS SEVERAL YEARS AGO AND WE ALSO KNOW WHERE IT'S GOING. BUT WHAT IS THE ALTERNATIVE? WE'RE RUNNING OUT OF WATER. SO WE'VE GOT INNOVATION GOING ON AND THAT'S GREAT. BUT I THINK YOUR POINT'S VALID BUT I THINK IT NEEDS TO BE EXPLAINED IN TERMS OF HOW A CONTRACT LIKE THIS WORKS THAT WE DON'T DEAL WITH EVERY DAY. AND THIS WAS DEALT WITH, YOU KNOW, A YEAR AGO, I GUESS. A YEAR AGO. AND THEN, IF, YOU KNOW, IF THERE'S SOMETHING TO MEET MIDDLE GROUND, I THINK IT'S WORTH A CONVERSATION TO SIT DOWN AND SAY THERE'S A CONTRACT WITH KIEWIT INVOLVED, RIGHT NOW TODAY. KIND OF LIKE THIS CONTRACT WE JUST TALKED ABOUT. YOU CAN'T JUST WALK OUT OF IT WITHOUT A HUGE PRICE. WE HAVE A CONTRACT WITH KIEWIT. WHAT IS THAT? WE COULD BE HERE UNTIL 9:00 AGAIN AND TALK ABOUT THAT. BUT MY SUGGESTION IS LET'S SIT DOWN, LET'S SIT AT THE TABLE WITH EVERYONE AND SAY WHAT IS THE SOLUTION TO WHAT, AT LEAST THE THREE COUNCIL MEMBERS WHO SIGNED THIS MEMO IS, AND NOT SLOWING DOWN THE PROCESS. IS THERE ONE? MAYBE THERE IS. AND IF THERE'S NOT, THERE'S NOT. THERE'S ALWAYS A WAY TO COME BACK AND DISCUSS THAT. BUT I THINK THAT IT DESERVES A CONVERSATION BECAUSE THERE IS A DETRIMENT TO JUST POINT-BLANK SAYING LET'S STOP THIS AND THEN I WILL BE CALLING A SPECIAL MEETING EVERY OTHER DAY, LIKELY, TO SAY -- SO THAT WE DON'T SLOW THINGS DOWN. AND I KNOW YOU DON'T WANT TO SLOW THINGS DOWN BUT THAT'S ESSENTIALLY WHAT WOULD HAPPEN. AND SO, ANYHOW, Y'ALL GO AHEAD. AND MAYBE, YOU KNOW, AGAIN, TO ME IT'S SITTING DOWN AT THE TABLE AND JUST HAVING A REALLY -- ONCE PETER IS HERE AS WELL. PETER IS NOT HERE IN THE ROOM AND SO THAT'S ESSENTIAL AS WELL TO THIS CONVERSATION. >> I JUST WANT TO MAKE A COUPLE OF COMMENTS ON THE PROCUREMENT ASPECTS OF THIS PROJECT. AND THE PROJECT WAS SELECTED TO BE DELIVERED THROUGH A PROGRESSIVE DESIGN-BUILD. AND I THINK ONE OF THE THINGS THAT'S IMPORTANT TO NOTE IS THAT YOU WANT TO HAVE A COMPETITIVE SPACE FOR THIS PROJECT TO BE CONSTRUCTED. YOU WANT TO HAVE MULTIPLE CONTRACTORS INTERESTED AND ENGAGED IN THE PROCESS. AND SO ONE OF THE THINGS THAT WAS IMPERATIVE WAS THAT WHEN WE SET THIS UP, WE WANTED TO MAKE SURE THAT THE CITY MANAGER AND HIS DESIGNEE, I SHOULD SAY, OFFICER IN CHARGE, HAD THE ABILITY TO IMPLEMENT A CERTAIN DOLLAR AMOUNT WITH CHECKS AND BALANCES IN PLACE. I THINK THAT'S THE QUESTION WE'RE TALKING ABOUT TODAY. I THINK THERE'S SOME COUNCIL MEMBERS THAT JUST FEEL LIKE THERE NEEDS TO BE MORE INFORMATION COMMUNICATED BEFORE THOSE DIFFERENT WORK ELEMENTS ARE DELIVERED. ONE OF THE REASONS WHY -- AND WE HAVE BEEN TOLD THIS BY MANY FOLKS -- IS THERE WAS A HUGE INTEREST IN THIS PROJECT FROM THE CONTRACTOR COMMUNITY BECAUSE OF THE FACT THAT IT'S A BIG PROJECT. IT'S AN IMPORTANT PROJECT FOR THE STATE OF TEXAS AND OBVIOUSLY FOR OUR REGION. BUT THE OTHER ELEMENT OF THIS IS THAT THIS IS A PROJECT THAT'S FAST PACED AND SO THE ABILITY TO MOVE QUICKLY THROUGH THIS PROCESS WAS AN IMPORTANT ASPECT OF WHY CONTRACTORS WERE INTERESTED IN THIS PROJECT. SO I THINK IN LOOKING AT THIS, AND CERTAINLY SEEING THESE CONCERNS, WE SAW THEM ON FRIDAY, I THINK THERE'S ABSOLUTELY A WAY TO WORK THROUGH THIS SO THAT WE CAN BRING OR WOULD BRING ELEMENTS OF THIS PROJECT TO COUNCIL SO YOU CAN APPROVE CERTAIN SPENDING MEASURES BEFORE WE GET TO THAT $138 MILLION THAT WE WERE APPROVED FOR SPENDING AUTHORITY LAST YEAR. SO I JUST THINK THAT, YOU KNOW, AGAIN THIS IS -- IT'S AN IMPORTANT ASPECT TO MAKE SURE THAT EVERYBODY ON COUNCIL AND THE COMMUNITY UNDERSTANDS WHAT IT IS THAT WE'RE SPENDING AND WHAT WE'RE COMMITTING TO. BRETT CAN PROBABLY EXPLAIN THIS A LITTLE BETTER THAN I BUT WE KNOW THERE IS SOME EQUIPMENT THAT'S GOT REAL LONG LEAD TIME, ESPECIALLY SOME OF THE ELECTRICAL EQUIPMENT. SOME OF THE DOLLARS THAT WERE EXPENDED WERE NOT FOR THE EQUIPMENT, PER SE, BUT TO MAKE SURE THAT WE HAD A PLACE IN LINE SO THAT WE CAN GET THAT EQUIPMENT IN A REASONABLE TIME-FRAME. I KNOW THERE'S BEEN QUESTIONS ABOUT HOW LONG IS THIS PROJECT REALLY GOING TO TAKE. THERE'S BEEN ESTIMATES, SOME HAVE SAID FIVE YEARS, FOUR YEARS. I MEAN, WE'RE TALKING -- ONE OF THE REASONS WHY THE COMPANY THAT WAS SELECTED TO DO THIS WAS SELECTED IS BECAUSE THEY HAVE AN INCREDIBLE TRACK RECORD OF DELIVERING PROJECTS ON TIME. WHEN LOOKING AT THE SCHEDULE AND AS WE CONTINUE TO HAVE THESE CONVERSATIONS, THE SCHEDULE HAS NOT CHANGED. THE SCHEDULE IS JUNE OF 2028 IS WHEN WE EXPECT TO HAVE WATER OUT OF THIS PLANT AND THE BIG PART OF IT IS TO ALLOW STAFF AND THE TEAM TO EXPEDITIOUSLY WORK THROUGH THIS. THAT'S NOT TO SAY THAT WE CAN'T COME BACK AND HAVE THESE CONVERSATIONS AND IF THERE'S AN APPETITE -- AND OBVIOUSLY THERE IS -- TO HAVE AN APPROVAL PROCESS BEFORE WE GET TO CERTAIN THRESHOLDS, I CAN TELL YOU FROM MY PERSPECTIVE I AM ABSOLUTELY WILLING TO DO THAT. IF THAT'S WHAT WE NEED TO DO TO MAKE SURE THAT THE COUNCIL IS COMFORTABLE WITH HOW WE GET FROM A TO Z. >> Mayor Guajardo: OKAY. >> MAYOR, I WAS ALSO GOING TO MENTION, JUST TO PUT INTO CONTEXT THE WAY WE'RE HANDLING THIS PARTICULAR ITEM IS REALLY NO DIFFERENT FROM HOW YOU CURRENTLY EXECUTE IDIQ CONTRACTS IN THE ENGINEERING DEPARTMENT. YOU DO WASTEWATER, WATER, STREET REPAIRS THROUGH THE SP&P WHERE YOU APPROVE A CERTAIN DOLLAR THRESHOLD FOR THAT WORK AND YOU EXECUTE DELIVERY ORDERS WITHIN THAT CONTRACT UP TO THE APPROVED AMOUNT. THIS IS VERY SIMILAR WHERE WE'RE FOLLOWING THIS RESOLUTION THAT GIVES US THE ABILITY TO EXECUTE AMENDMENTS FOR CERTAIN SCOPES OF WORK UP TO THE APPROVED AMOUNT. AND THE APPROVED AMOUNT DURING THIS JUNE 25th WAS $138 MILLION. WHAT WE'RE DOING IS AS WE WORK OUR WAY THROUGH THIS FIRST PHASE, AS WE IDENTIFY SCOPES OF WORK, BE IT EARLY WORK PACKAGES, DESIGN EFFORTS, OR OTHER, WE'RE EXECUTING AMENDMENTS TO CAPTURE THAT SCOPE. SO IT'S VERY SIMILAR TO THE DELIVERY METHOD THAT WE'VE CURRENTLY USED AND HAVE BEEN USING FOR YEARS SUCCESSFULLY, I MIGHT ADD, THROUGH THE ENGINEERING SERVICES DEPARTMENT. SO I JUST WANTED TO ADD THAT. >> Mayor Guajardo: OKAY. THANK YOU. COUNCILMAN HERNANDEZ W. >> Hernandez: OKAY. PART OF THIS RESOLUTION IS TO FOLLOW THE NORMAL PROCUREMENT PROCESS. CHANGE ORDERS YOU HAVE THE AUTHORITY UP TO $100,000 IF YOU'RE GOING TO MAKE ANY CHANGES ASSOCIATED WITH IT. SO WITH THIS, IT'S JUST WHENEVER YOU COME TO IT. LIKE, FOR EXAMPLE, THE DEMONSTRATION PLAN OR PILOT FOR THIS, THE ESTIMATE WAS $5 MILLION. THEN IT WAS $18 MILLION. YOU DID A TIME AND MATERIALS CONTRACT. AND THEN WE FOUND OUT ABOUT IT AFTERWARDS. AND SO WE HAVE TO EXPLAIN TO THE PUBLIC, YOU KNOW, WHAT'S GOING ON. AND WE DON'T HAVE VISIBILITY TO IT UNTIL AFTER THE FACT. SO WE ARE RESPONSIBLE FOR SPENDING MONEY. WE HAVE TO FILE ETHICS REPORTS ON HOW WE SPEND MONEY. LAST TIME I CHECKED, I DON'T THINK YOU HAVE TO FILE AN ETHICS REPORT, DO YOU? NO? SO I WANT TO MAKE SURE THAT WE ARE ELECTED AND ACCOUNTABLE FOR THE TAXPAYER DOLLARS. EVERYBODY UP HERE. AND IT IS INCUMBENT UPON US TO BE GOOD STEWARDS, IN THIS CASE OF THE RATEPAYERS' DOLLAR. THIS IS NOT -- THE CONTRACT HAS ALREADY BEEN SIGNED WITH KIEWIT. THIS IS GOING FORWARD. IT REMOVES THAT AUTHORITY GOING FORWARD FROM THE TIME WE PUT THIS IN PLACE. AND IT SAYS YOU FOLLOW REGULAR PROCUREMENT PROCESSES, YOU KNOW, AND IF YOU'RE GOING TO SPEND A LOT OF MONEY IN ONE PARTICULAR SUM, YOU ASK PERMISSION. YOU'RE NOT GOING TO BUILD THIS PLANT IN THE NEXT SIX MONTHS. I WANT TO MAKE SURE THAT YOU UNDERSTAND THAT WE'RE, YOU KNOW, CONCERNED ABOUT YOUR, YOU KNOW, LACK OF TRANSPARENCY AND PROVIDING THIS INFORMATION IN A TIMELY MANNER IN ORDER TO DO THIS. SO THIS IS FOR US TO, YOU KNOW, HAVE A LEVEL OF COMFORT WITH WHAT MONEY IS BEING SPENT ON, WHERE IT'S BEING SPENT, WHAT ITEMS YOU'RE SPENDING IT ON, BECAUSE WE'RE NOT SEEING IT. I CAN'T TELL YOU HOW MUCH WE'VE SPENT ALREADY, BECAUSE YOU HAVEN'T TOLD US. SO WITH THAT, I'LL MAKE A MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: COUNCILMAN CANTU. >> Cantu: I'M NOT TRYING TO STALL DESAL. I'M NOT TRYING TO STOP THE PROJECT, LIKE EVERYONE IS SAYING. I GOT LITERALLY LIKE 50, 60 TEXT MESSAGES TELLING ME STUFF. EVEN GOT A FEW MAKING THREATS. I'M NOT STOPPING IT. ALL WE WANT IS TRANSPARENCY FOR THE PEOPLE OF CORPUS CHRISTI. THAT'S IT. THAT'S ALL WE WANT. WE WANT TO SEE WHAT YOU'RE SPENDING MONEY ON, DREW. THAT'S ALL WE WANT TO DO. WE'RE NOT TRYING TO STALL IT. WE'RE NOT TRYING TO DO ANYTHING BUT TO SEE WHAT WE'RE SPENDING AND LETTING THE PUBLIC SEE IT TOO. WE NEED WATER. THE MAYOR'S CORRECT. WE NEED WATER. THAT'S WHY WE'RE TRYING TO GET YOU GUYS TO GET WATER FOR US BESIDES INNER HARBOR DESAL. I JUST FEEL THAT YOU GUYS DRAG YOUR FEET ON OTHER RESOURCES OF WATER BECAUSE ALL YOU GUYS CONCENTRATE ON ARE DESAL. YOU SAID IT'S GOING TO BE DONE IN JUNE OF 2028. THAT'S WHAT YOU'RE SAYING. JUNE 2028. I DOUBT THAT. IT'S PROBABLY GOING TO BE DONE IN FIVE YEARS, FOUR YEARS. IT'S GOING TO BE LONGER THAN THAT. WE NEED WATER TODAY. THAT'S THE REASON WHY WE PRESSURE YOU GUYS WITH SOUTH TEXAS WATER AUTHORITY BECAUSE WE NEED TO FIND WATER. WE CAN'T WAIT FOR DESAL. IT'S GOING TO COME BUT WE CAN'T WAIT. BUT WHAT HAPPENS, DREW, IF DESAL COSTS US $2 BILLION, JUST THROWING IT OUT THERE. ARE WE STILL GOING TO DO DESAL FOR $2 BILLION? >> Molly: WELL, I'LL TELL YOU WHAT. I THINK THERE'S GOING TO BE A LOT OF GOOD INFORMATION THAT WE'RE GOING TO HAVE IN THE NEXT TWO WEEKS. SO JULY 15 BRETT IS GOING TO BE TALKING ABOUT A COST MODEL THAT WE WILL BE ALL TALKING ABOUT. I HOPE THAT WE HAVE A REALLY GOOD HEALTHY DIALOGUE. I THINK THERE'S ALSO SOME GOOD THINGS THAT ARE COMING DOWN THE PIPELINE -- NO PUN INTENDED -- TO INCLUDE THE NUECES RIVER GROUNDWATER WELL PROJECT. THAT IS PROBABLY GOING TO BE -- >> Cantu: BUT ANSWER MY QUESTION. >> Molly: YEAH. >> Cantu: LET'S DO A REALISTIC NUMBER. $1.6BILLION. ARE WE STILL GOING TO SPEND $1.6 BILLION FOR 30 MILLION GALLONS PER DAY? >> Molly: WE'RE GOING TO LOOK AT NUMBERS. >> Cantu: HAVE YOU BEEN LOOKING AT NUMBERS FROM THE FEDS AND THE STATE? >> Molly: WE HAVE. THAT'S AN ONGOING CONVERSATION AND ENDEAVOR. >> Cantu: HOW'S THE OUTCOME ON IT? WHAT'S THE FEEDBACK OF GETTING MONIES, GRANTS, NOT LOANS BUT GRANTS FROM THE STATE AND THE FEDS? >> Molly: RIGHT. I BELIEVE THAT WE HAVE SOME OPPORTUNITIES. I DON'T HAVE ANYTHING THAT I CAN SHARE WITH YOU THAT IS ROCK SOLID IN TERMS OF GRANT FUNDING AT THIS POINT IN TIME. BUT I DO -- AND I ASSURE YOU THAT WE'RE PULLING AND DOING EVERYTHING WE POSSIBLY CAN TO MAKE SURE THAT EVERY STONE HAS BEEN UNTURNED. WE'RE TALKING TO OUR FEDERAL PARTNERS. WE'RE TALKING TO THE STATE. YOU KNOW, AND THOSE ARE ALL THE ASPECTS THAT WE HAVE AVAILABLE TO US. >> Cantu: I JUST DON'T LIKE THE FACT THAT OUR CITY MANAGER HAS A BLANK CHECK. THAT'S IT. THAT'S ALL I WANT HIM TO DO IS COME TO COUNCIL. SUBMIT IT, PUT IT ON THE AGENDA, LET'S VOTE ON IT. THAT'S IT. WE'RE NOT TRYING TO STALL IT. WE'RE REALLY NOT. I'M NOT TRYING TO STALL IT. YOU KNOW, THESE TEXT MESSAGES AND THE CHAMBERS ARE SAYING WE'RE DOING THIS AND DOING THAT AND TRYING TO KILL IT. WE'RE NOT TRYING TO KILL IT. WE ALREADY PUT A MEMO OUT TO KILL THE INNER HARBOR DESAL IF WE WANTED TO. THAT'S NOT THE CASE. AND I AGREE WITH CAROLYN. NO, WE WERE GOING TO TABLE THIS BUT THE THREATS AND THE TEXT MESSAGES AND, LIKE SHE SAID, OLD WHITE MEN THINK THEY RUN THE CITY. NO. SORRY MARK. YOU'RE NOT OLD THOUGH. THEY DON'T RUN THE CITY ANYMORE. THEY USED TO. WE JUST NEED TO BE TRANSPARENT WITH THE PUBLIC. THAT'S IT. THAT'S ALL I'M ASKING. AND THE WHITE MAN -- I'M A WHITE MAN TOO. NOTHING RACIST. BUT, YOU KNOW, IT'S JUST -- WE JUST WANT TO BE TRANSPARENT WITH THE PUBLIC AND WE WANT TO SEE IT. THAT'S ALL I'M ASKING. EVERY TIME I ASK YOU GUYS FOR NUMBERS, WHAT Y'ALL SPENT, IT TAKES Y'ALL WEEKS, IF THAT. SOMETIMES I DON'T GET NOTHING FROM YOU GUYS. SO, THAT'S IT. THANKS. >> MAYOR, I JUST WANT TO SAY THE CITY MANAGER AND THE OIC DO NOT HAVE A BLANK CHECK. WHEN CITY COUNCIL APPROVED THIS RESOLUTION, IT WAS APPROVING A DESIGN PHASE. THIS IS A THREE-PHASE CONTRACT. THERE'S A DESIGN PHASE, A CONSTRUCTION PHASE, AND AND OPERATIONS PHASE. SO THIS ACTION, THIS RESOLUTION WAS TO APPROVE TO SELECT THE DESIGN-BUILDER AND APPROVE THE DESIGN PHASE. $68MILLION WAS THE DESIGN COST FOR THIS -- ESTIMATED DESIGN COST. AND THEN THERE WAS ANOTHER $69 MILLION FOR EARLY WORK PACKAGES, FOR GEOTECH, SITE PREP, AND THEN PURCHASING LONG-LEAD ITEMS, AS MILES SAID. SO IT WAS ELECTRICAL TRANSFORMERS AND RO SCREENS, BECAUSE THEY'RE COMING FROM ISRAEL. WHO KNOWS ABOUT THAT. ANYWAYS, SO THESE ARE LONG-LEAD ITEMS. AND THEN THERE WAS GOING TO BE SOME ADDITIONAL EASEMENTS THAT WERE GOING TO BE NEEDED FROM THE SITE TO THE NAVIGATION PUMP STATION. SO THERE WERE SOME COSTS INCLUDED IN HERE TO ACQUIRE PROPERTY, EASEMENT RIGHTS. SO I KNOW THERE WAS A MOTION MADE TO RESCIND THIS RESOLUTION. AND THAT'S WHAT MILES WAS SAYING EARLIER IS THAT WE DON'T UNDERSTAND THAT BECAUSE IF YOU RESCIND THIS RESOLUTION, THEN YOU ARE RESCINDING THE AUTHORIZATION TO EXECUTE A CONTRACT WITH KIEWIT, WHICH WE ALREADY HAVE A CONTRACT. AND THEN, YOU KNOW, PARTS -- WE'RE STEPPING THROUGH THE DESIGN PHASE RIGHT NOW. SO YOU CAN'T REALLY RESCIND THE RESOLUTION BECAUSE YOU HAVE AN EXECUTED CONTRACT. YOU HAVE EXECUTED -- YOU ALREADY SELECTED THE TOP-RANKED DESIGN-BUILDER, YOU EXECUTED THE CONTRACTS. THAT'S WHAT MILES IS SAYING. WE'RE KIND OF CONFUSED ABOUT WHAT THE ACTION WOULD DO. AND ALSO, AS FAR AS BEING TRANSPARENT WITH THE COST, WE ARE A PUBLIC ENTITY. WE ARE TRANSPARENT. WE HAVE A WEBSITE FOR DESAL. WE CAN POST ALL OF THE CONTRACT AMENDMENTS AND ALL OF THE INVOICES ON THE WEBSITE. I THINK WE HAVE OUR BANK REGISTER ALREADY ON THE WEBSITE. WE COULD BE AS TRANSPARENT AS WE NEED TO BE. THAT'S NOT AN ISSUE AT ALL. LIKE I SAID, WE CAN MODIFY FOR THE AUTHORITY IF WE NEED TO BUT I DON'T THINK YOU CAN JUST RESCIND IT. >> Mayor Guajardo: OKAY. LET ME GET THROUGH SOME OF THESE. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. SO FOR ME WE'RE A PUBLIC ENTITY. WE'RE NOT A PRIVATE ENTITY. PRIVATE ENTITIES YOU CAN DO BUSINESS WITH WHOMEVER YOU CHOOSE IF IT'S IN YOUR BUDGET OR IF IT'S NOT WITHIN YOUR BUDGET. I UNDERSTAND PROJECTS HAVE PROJECT MANAGERS AND PROJECT LIAISONS, I GET ALL THAT. BUT WE ARE A PUBLIC ENTITY AND WE DO HAVE A PROCUREMENT THRESHOLD. AND I UNDERSTAND THE IDIQs BUT WE STILL HAVE THOSE PROJECTS BROUGHT TO US. WE STILL -- EACH ONE HAS A TAGLINE AND A BUDGET AND WE'RE ABLE TO TRACK THOSE PRETTY EASILY. AND IF WE HAVE THAT INFORMATION AS EASILY ACCESSIBLE, I'D SAY PUT IT THERE. POST IT. I DON'T KNOW WHY WE WOULDN'T HAVE. IF WE'VE BEEN GIVEN THESE ROBUST PROJECT UPDATES IN OUR BRIEFINGS, AS REGULARLY AS WE HAVE, I DO FEEL LIKE THAT'S BEEN LACKING. THAT'S BEEN VERY LACKING. AND I CAN'T TELL YOU WHAT WE'VE SPENT ON EVERYTHING. AND ALSO, IN MY PHONE CALLS AND THINGS THIS WEEKEND, I DON'T KNOW WHAT WE SPENT. I DON'T KNOW WHAT THIS IS COSTING. I HAVE NO IDEA BECAUSE HERE'S THE THING: THE COUNCIL, THE ELECTED BODY -- AND YOU GUYS KNOW THIS. THAT'S THE AUTHORITY NUCLEUS. THIS RESOLUTION SAID THIS COUNCIL HAS ENTERED INTO A CONTRACT WITH X CONTRACTOR. PETER DESIGNEE. GO AND EXECUTE IT. RESCINDING THIS RESOLUTION DOES NOT READ RESCIND CONTRACT FOR DESALINATION. IT READS RESOLUTION TO RESCIND THE AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE CONTRACTS AND AMENDMENTS FOR DESIGN SERVICES OR CONSTRUCTION MATERIAL FOR THE INNER HARBOR DESAL TREATMENT PROJECT. IT DOES NOT SAY ANNIHILATE OUR CONTRACTS WITH KIEWIT OR FREESE AND NICHOLS. THE PREVIOUS COUNCIL PUT INTO PLACE, YOU GUYS, CITY MANAGER AND YOUR DESIGNEE, GO BE US. GO USE OUR AUTHORITY UP TO HOWEVER MUCH THEY'VE ALREADY ESTIMATED. GO DO OUR BUSINESS FOR US. THAT'S FINE. THAT WAS THE DECISION THAT WAS MADE. BUT THE WAY I READ THIS THREE-PERSON AGENDA ITEM IS SAYING, ALL RIGHT, WE DID THAT FOR A WHILE. WE DON'T KNOW THESE ANSWERS. BRING IT BACK TO US. DOESN'T SAY CANCEL THE CONTRACT. IT DOESN'T SAY KIEWIT, YOU'RE GONE. IT DOESN'T SAY FREESE AND NICHOLS, YOU'RE GONE. IT DOESN'T SAY ANY OF THAT. IT SAYS REVERT BACK TO THE PURCHASING POLICY, WHICH IS ITEMS COME BEFORE COUNCIL. THERE ARE THRESHOLDS FOR THE CITY MANAGER PURCHASING. THERE ARE THRESHOLDS FOR DIRECTORS PURCHASING. MOST OF THOSE DON'T GO THROUGH COUNCIL IF THEY'RE UNDER THEM. THEY DO IF THEY'RE NOT. IT'S THAT SIMPLE. IT DOESN'T NEED TO BE POLITICAL. I'M NOT SAYING Y'ALL ARE MAKING IT POLITICAL BUT IF MY COLLEAGUES HAVE GOTTEN CALLS AND THREATS, THAT BOTHERS ME TOO. ANOTHER THING, DREW, WHEN WE WERE TALKING ABOUT THE SOUTH TEXAS WATER AUTHORITY, I SAID LET'S MAKE THAT PUBLIC ALSO. I'M ALL FOR THE PUBLIC INFO. IF WE'VE GOT IT, PUT IT. >> Molly: I DON'T KNOW THAT I'M ALLOWED TO. ON THE SOUTH TEXAS WATER AUTHORITY, I'VE GOT A CONTRACT THAT WAS GIVEN TO ME FRIDAY NIGHT -- IT'S A CONTRACT BETWEEN SOUTH TEXAS WATER AUTHORITY AND SEVEN SEAS AND IT'S A CONFIDENTIAL CONTRACT. I CAN'T -- >> Paxson: I'M NOT ASKING YOU TO PUBLISH CONFIDENTIAL INFORMATION. BUT JUST LIKE WE SAT HERE PUBLICLY AND SAID HERE'S THE MOU, IT'S A PUBLIC DOCUMENT, WE'VE ENTERED INTO IT AND WHY. BECAUSE WE'RE HOPING TO HAVE THIS RELATIONSHIP. THIS IS THE OPPORTUNITY, THESE ARE THE PLAYERS. IT'S PUBLIC KNOWLEDGE. IT'S WATER. WE SHOULD BE HAPPY THAT IT'S AN OPPORTUNITY. IS IT GOING TO PAN OUT SUNSHINE AND RAINBOWS? I DON'T KNOW. I HOPE SO. WE NEED A LOT OF WATER, BUT IT'S SOMETHING TO GET BEHIND. YOU FOLLOW? TO ME THIS DOES NOT THREATEN A CONTRACT WITH KIEWIT. IT'S SIMPLY SAYING WE DELEGATED AUTHORITY. AND THAT'S FINE. THAT'S WHAT THEY DID. BUT NOW WE'RE SAYING BRING IT BACK. >> IF I MAY JUMP IN REALLY QUICK. SO YOU'RE RIGHT. WE DO HAVE A CONTRACT WITH KIEWIT BUT WHAT I WAS TRYING TO CONVEY EARLIER IS WE DON'T KNOW THE UNKNOWN OR UNINTENDED CONSEQUENCES OF THIS ACTION YET. WE HAVEN'T STUDIED THAT. WILL IT MAKE OUR PROCESS SLOWER? WILL IT MAKE IT MORE EXPENSIVE? WE DON'T KNOW BUT WE ANTICIPATE THAT'S PROBABLY GOING TO BE THE CASE. >> Paxson: IT'S POSSIBLE. BUT IF YOU BRING THE STUFF TO US, CALL A SPECIAL MEETING, DO WHAT YOU GOT TO DO. IF IT LOOKS A LITTLE WONKY AT FIRST, THAT'S FINE. WE CAN FIGURE IT OUT. BUT I THINK THAT'S WHAT THE IMPETUS IS. IT'S NOT ATTACKING THE PROJECT. >> NO, I UNDERSTAND. AND SO, AGAIN, IF WE HAVE SOME PARAMETERS THAT WE'RE ABLE TO WORK WITH OTHER THAN JUST COMING BACK TO COUNCIL EVERY TIME WE HAVE TO MAKE AN ACTION, MAYBE THAT'S SOMETHING THAT WE CAN DISCUSS. BUT I'M JUST SAYING AS WRITTEN NOW, WE DON'T KNOW WHAT THAT IMPACT WILL BE. SO I JUST WANT TO MAKE SURE THAT THAT'S OUT THERE. >> Paxson: THAT WE'RE AWARE. I RESPECT THAT. I THINK THAT WHAT THEY SAID, LIKE I SAID, IT DOESN'T ATTACK THE PROJECT, TO ME. IT'S JUST ACCOUNTABILITY AND TRANSPARENCY FOR GOVERNMENT SPENDING. YOU'RE OUR LIAISON, WE WANT TO BE A LIAISON. THAT'S FINE. I THINK THERE'S A MOTION AND A SECOND. WHAT I WILL SAY, IF THIS WERE TO PASS, I DON'T KNOW WHAT THE FUTURE OF THIS IS. I WOULD BE OPEN TO HEARING A SUGGESTION FROM YOU. WHAT DOES THAT LOOK LIKE, YOU KNOW, IF WE'RE SAYING, ALL RIGHT, IF WE'RE GOING BACK TO A COUNCIL PROCUREMENT TYPE, MAYBE RECOMMEND THIS THRESHOLD SO THAT WE'RE STILL BALANCING THAT. I WOULD BE OPEN TO A RECOMMENDATION. [TIMER] >> Mayor Guajardo: FIRST OF ALL, THE LEGAL ASPECT OF THIS IS EXTREMELY IMPORTANT. SOMEONE NEEDS TO ANSWER IT. IF THIS IS DONE -- I GUESS OR ARE YOU SAYING WE DON'T KNOW. >> [OFF MIC] >> Mayor Guajardo: OKAY. ARE Y'ALL AMENABLE, THE THREE PEOPLE THAT SIGNED THE MEMO, WHICH WAS WHO? >> [OFF MIC] >> Mayor Guajardo: OKAY. SO ARE Y'ALL AMENABLE TO FAIRLY ALLOW THEM, WHICH IS WHAT I WOULD SUGGESTED, TO SAY -- EVERYONE HAS -- THIS CAN COME BACK ON AN AGENDA LIKE THAT, AS YOU ALL KNOW. TO SAY HERE'S THE EFFECT OF THIS. BECAUSE YOU ARE ESSENTIALLY -- THERE'S A MOTION AND A SECOND TO DO SOMETHING YOU HAVE NO IDEA OF WHAT THE CONSEQUENCES MIGHT BE. SO I COULD NEVER SUPPORT THAT. IF YOU HAVE STAFF AND LEGAL SAYING, HEY, GIVE US SOME TIME, YOU KNOW, AND WE CAN PUT SOMETHING TOGETHER TO SHOW THE COUNCIL WHAT THAT OPTION WOULD LOOK LIKE AND THEN BRING IT BACK, THAT TO ME SOUNDS LOGICAL. BECAUSE RIGHT NOW, WHETHER PEOPLE BELIEVE IT OR NOT, IF YOU TRUST PEOPLE OR NOT -- I DON'T KNOW WHO YOU WANT TO RELY ON AND WHO YOUR INFORMATION IS COMING FROM TO SAY, NO, THAT'S NOT TRUE. NO ONE IS SAYING THAT. BUT RIGHT NOW YOU HAVE LEGAL AND YOU HAVE DREW, OUR COO SAYING WE NEED TIME TO PUT SOMETHING TOGETHER. OTHERWISE, YOU KNOW, AND I'M CONCERNED ABOUT THIS CONTRACT. I DO NOT WANT TO GET THE CITY IN TROUBLE WITH KIEWIT -- AGAIN, BACK TO THE POINT OF BEING ABLE TO DISCUSS ALL OF THIS, WHERE WE DO SOMETHING AND IT CONTRADICTS LEGALLY WITH WHATEVER IS IN THE CONTRACT WITH KIEWIT. SO Y'ALL THINK ABOUT THAT FOR A MINUTE WHILE WE GO THROUGH SOME OF THESE COMMENTS. COUNCILMAN SCOTT. >> Scott: WELL, I'VE CERTAINLY GOT MY SHARE OF BEATING TODAY ON SOCIAL MEDIA, TV, AND RADIO. I'M WITH YOU GUYS. A LOT OF PUSHBACK. I THINK THIS DOCUMENT INCITED PANIC. WHEN I READ IT IT SAYS TO RESCIND THE CITY MANAGER'S AUTHORITY TO EXECUTE A CONTRACT FOR AN INNER HARBOR DESAL. IF HE'S ALREADY DONE IT, TECHNICALLY -- I CAN TELL YOU FOLKS, I'M FROM KINGSVILLE -- WE'RE RESCINDING THAT AGREEMENT, WHICH MEANS WE'RE TERMINATING THE AGREEMENT WITH KIEWIT. I DON'T KNOW. I DON'T THINK ANYBODY WANTS TO DO THAT. WITH THAT SAID, I WANT TO HONOR CAROLYN'S COMMENTS THAT SHE IS NOT TRYING TO KILL OR SLOW DOWN, I THINK I HEARD, INNER HARBOR. I DO THINK THERE'S A DAY OF RECKONING, WHICH IS A 60%, WHICH IS BIZARRE TO ME THAT WE SPENT ALL THIS MONEY AND WE'RE NOT -- I PERCEIVE WE MAY BE KILLING IT BEFORE WE GET TO 60%. I THINK THIS ORDINANCE SUBMITTED TO THE CITY SECRETARY ON A FRIDAY AFTERNOON AT 3:30 LACKS TRANSPARENCY. THIS IS THE LARGEST PROJECT THAT WE MAY HAVE EVER DONE IN THE HISTORY OF CORPUS CHRISTI AND IT DESERVES MORE THAN ONE DAY FOR THE WORLD TO SEE IT. IT WAS FASCINATING TO ME TO WALK IN TO THE COUNCIL CHAMBERS, THE OUTSIDE OF THE CHAMBERS TODAY AND THE MEDIA WANTS TO TALK ABOUT FIVE OTHER THINGS WHEN THIS IS CLEARLY, I THINK, VERY SIGNIFICANT. MY POINT IS I DON'T THINK THE MEDIA HAS PICKED UP ON HOW SIGNIFICANT MARK SCOTT THINKS IT IS. I TOTALLY GET IT. I THINK THERE'S ADEQUATE OVERSIGHT BUT IF THERE IS A PATH TO ADDITIONAL OVERSIGHT THAT DOESN'T OBSTRUCT, DELAY, OR CANCEL BEFORE WE GET TO THE DECISION POINT, THEN I'M ALL IN. I DON'T THINK IT'S GOOD PUBLIC POLICY TO DO THAT HERE ON THE DAIS. I THINK WE NEED TO LET YOU GUYS TELL US. I DON'T THINK IT MATTERS TO SOME FOLKS WHAT I THINK. I'M REALLY CURIOUS ABOUT WHAT DO YOU THINK WILL HAPPEN IF WE JUST STOP THE CURRENT PROCUREMENT PROCESS AND WENT TO A -- SOMEWHERE YOU WOULD PRESENT THE NEXT PROCUREMENT REQUEST ON COUNCIL? IN GENERAL TERMS. >> SO I THINK IN THE CURRENT PHASE, WHICH IS A LITTLE BIT SLOWER IN THE DESIGN PHASE, THAT I THINK WE COULD WORK AROUND THAT REQUEST. I DON'T THINK IT WOULD BE TOO DETRIMENTAL TO THE PROGRESS. BUT WHEN WE GET INTO CONSTRUCTION WHERE WE'RE GOING TO BE MOVING VERY FAST. WE'RE GOING TO BE SPENDING, YOU KNOW, 30 TO $40 MILLION A MONTH AND WE'RE GOING TO BE MAKING CHANGES ON A DAILY, HOURLY BASIS OF SIGNIFICANT VALUE, DEPENDING ON HOW WE FINALIZE CONTRACTS WITH SUBCONTRACTORS, PURCHASE MATERIAL, HAVE A HUGE HURRICANE OR, YOU KNOW, ANY NATURAL EVENT. YOU REALLY DON'T KNOW WHAT'S GOING TO HAPPEN. BUT AS WE TRANSITION INTO THAT PHASE OF THE PROJECT, IF WE USE OUR CURRENT THRESHOLD FOR DECISIONS LIKE THAT, IT WOULD BE A SIGNIFICANT IMPACT. RIGHT NOW ANY CHANGE ORDERS OVER $100,000 HAVE TO COME TO CITY COUNCIL. >> Scott: WHAT DID YOU SAY? >> OVER A $100,000 THRESHOLD, THAT'S OUR NORMAL POLICY IS OVER $100,000 WE HAVE TO COME BACK TO CITY COUNCIL. >> Scott: THAT'S IN THE CURRENT AGREEMENT? >> WELL, THAT'S OUR NORMAL POLICY. >> NO. HE'S TALKING AFTER JANUARY. >> Scott: GOT IT. >> CORRECT. IF WE WERE DOING WHAT WAS BEING PROPOSED AS FOLLOWING OUR NORMAL PROCESS, I WOULD BE IN HERE ALL THE TIME TALKING TO YOU DAILY, PROBABLY MULTIPLE CHANGE ORDERS PER DAY AT CITY COUNCIL. SO IT WOULD BE SIGNIFICANT. IT WOULD BE A SIGNIFICANT ADMINISTRATIVE EFFORT BY THE PROJECT TEAM. AND IT WOULD PROBABLY HAVE SIGNIFICANT DELAYS TO THE EXECUTION OR, YOU KNOW, KIEWIT, I DON'T THINK THEY'RE GOING TO PROCEED AT RISK ON ALL THIS WORK, WHICH IF WE DIDN'T GET THIS EXECUTED TIMELY, I DON'T THINK THEY'RE GOING TO PROCEED. >> Scott: I WAS CURIOUS WHERE KIEWIT IS IN ALL THIS. I MEAN, YOU DID A CONTRACT WITH THEM BASED ON A CONCEPT. >> YEAH. >> Scott: AND IF IT CHANGES, I WOULD ASSUME -- I DON'T KNOW THAT YOU CAN CHANGE. BUT IF THEY CHANGE, DO YOU HAVE AN OUT? >> WE HAVEN'T EXECUTED THAT PORTION OF THE CONTRACT. THAT'S GOING TO BE PHASE 2. THAT'S ANOTHER CONVERSATION. WE'RE NOT THERE YET. I IMAGINE IF WE PUT LANGUAGE LIKE THAT IN THERE, THEY'RE GOING TO BUILD THAT RISK INTO THEIR COST. >> THERE IS A PROVISION IN THE DESIGN PHASE OF THE CONTRACT THAT IF, YOU KNOW, IF IT BREAKS DOWN, THEY CAN TERMINATE AND WE PAY THEIR COST TO DATE. WE WOULD JUST PAY ALL THE COSTS. >> Scott: IS THAT THE OFF RAMPS? >> NO, THE OFF RAMP, THAT WOULD BE AT 60% AND THEN WE CAN JUST BOTH WALK AWAY. BUT IF WE TERMINATE DURING THE DESIGN PHASE BEFORE THE 60%, THEN WE CAN TERMINATE THE CONTRACT AND THEN JUST PAY THEIR COST. >> WE MAKE THEM WHOLE AND THEN WE BOTH PART WAYS. >> A TERMINATION FOR CONVENIENCE IS WHAT IT'S CALLED, A NORMAL CONTRACT. >> Scott: DREW, DO YOU THINK WE CAN BUILD THIS IF WE CAN START CONSTRUCTION IN JANUARY, WATER WILL BE FLOWING, SANS ANY CATASTROPHIC GEOLOGICAL EVENT? >> Molly: I FEEL LIKE WE HAVE THE RIGHT TEAM TO DO IT. I MEAN, FRANKLY, KIEWIT IS THE MOST REPUTABLE CONTRACTOR IN THE COUNTRY FOR DELIVERING PROJECTS. ONE OF THE REASONS WHY THEY'RE SO GOOD AT WHAT THEY DO IS BECAUSE THEY CONTROL THE CRITICAL-PATH ITEMS IN A CONSTRUCTION PROJECT SO THEY CAN SELF-PERFORM EVERYTHING. SO I FEEL LIKE WE HAVE A VERY GOOD CONTRACTOR WHO CAN GET THIS JOB DONE WHEN THEY SAID THEY WERE GOING TO GET IT DONE. >> Scott: ALL RIGHT. DO YOU GUYS HAVE A BLANK CHECK? >> Molly: NO. >> Scott: COME ON, NOW. REALLY? SO HOW ARE WE SPENDING THE MONEY? THE ANSWER I THINK IS THE SCOPE OF WORK. THAT WAS ATTACHED TO THE RESOLUTION LAST YEAR, RIGHT? IT'S 1A. >> WE'RE STILL IN THE DESIGN PHASE SO EVERY AMENDMENT WE DO DURING THE PROCESS HAS A SCOPE OF WORK. AND IT'S VETTED BY NOT ONLY OUR INTERNAL TEAM BUT FREESE AND NICHOLS, OUR PROJECT MANAGER, AND ALSO THE TEXAS WATER DEVELOPMENT BOARD HAS TO REVIEW EVERYTHING. BECAUSE THEY'RE PAYING FOR THIS. >> Molly: WELL, WE ALSO HAVE AN INDEPENDENT COST ESTIMATOR. [MULTIPLE VOICES] >> YES. SO THERE'S MULTIPLE LAYERS OF CHECKS AND BALANCES. >> Scott: I'M RUNNING OUT OF TIME. CAROLYN, YOU WERE OUT OF THE ROOM BUT I TRUST YOU IF YOU SAY YOU'RE NOT TRYING TO KILL DESAL. I WILL TELL THE WORLD THAT. THIS DOCUMENT CAUSED GREAT PANIC FOR ME. THE WAY I READ IT IS TO TERMINATE WITH KIEWIT WHICH KILLS DESAL. I WANT YOU TO KNOW WHERE I'M COMING FROM BUT I WILL TELL THE WORLD. NOBODY LISTENS. CAROL DOES. WELL, THE LABS DO. SO IF THERE'S A WAY TO PROVIDE ADDITIONAL OVERSIGHT WITHOUT OBSTRUCTING THE PROGRESS, WITHOUT DELAYING THE PROJECT, WITHOUT CANCELING THE PROJECT, COUNT ME IN. I JUST DON'T WANT TO DELAY. AND, LASTLY, I OBJECT TO BEING CALLED AN OLD WHITE GUY. [LAUGHTER] I WORK OUT EVERY DAY AND I'M TRYING TO KEEP OLD MAN, WHITE GUY AT BAY. >> Mayor Guajardo: THANK YOU. COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. WELL, FOR ME IT IS ABOUT TRANSPARENCY AND, I MEAN, AS MUCH AS I WANT TO PROTECT THE BAY AND, YOU KNOW, LIKE MOST PEOPLE ARE SAYING THAT THIS IS TO DELAY. IT REALLY IS ABOUT -- IT COMES DOWN TO COST. RIGHT? AND SO WHAT I'M HEARING FROM OUR CITY ATTORNEY AND FROM YOU ALL IS THAT THIS WOULD PROBABLY INCREASE THE COST. IS THAT WHAT I'M HEARING? >> I WOULD EXPECT SO, YES, MA'AM. >> Campos: BUT THE OTHER THING THAT WAS REVEALED HERE WAS THAT HERE WE ARE ASKING TO RESCIND THE CONTRACT TO HAVE PETER, YOU KNOW, WHAT WAS THE WORDING? THE AUTHORIZING, AS A CITY MANAGER OR DESIGNEE. BUT, IN FACT NOW YOU JUST ADMITTED, BRETT, THAT YOU ARE THE DESIGNEE. >> YES, MA'AM. >> Campos: AND JUST AS COUNCILMAN HERNANDEZ SAYS, WE ALL HAVE TO FILE ETHICS REPORTS. I BELIEVE YOU DO TOO, RIGHT, DREW? BUT YOU JUST ADMITTED THAT YOU DON'T HAVE TO FILE ETHICS REPORTS. TO ME, THAT IS TRANSPARENCY AND THAT'S SOMETHING THAT WAS REVEALED HERE. I DID NOT KNOW THAT. I MEAN, THE REASON THAT THESE TYPES OF ISSUES COME UP IS THAT, YOU KNOW, YOU, DREW, SIT ON THE DESAL BOARD THAT SITS WITH THE KIEWIT PEOPLE THAT SIT WITH PEOPLE THAT ARE VESTED IN THESE TYPES OF PROJECTS. AND IT MAKES IT -- IT MAKES IT KIND OF MUDDY, YOU KNOW, TO SEE. BECAUSE WHEN I HEAR YOU TALKING ABOUT HOW GREAT KIEWIT IS. BUT IS THERE OTHER COMPANIES THAT ARE JUST AS GREAT? I WOULDN'T KNOW BECAUSE THAT'S THE ONLY COMPANY THAT, YOU KNOW, THAT WE HAVE A CONTRACT WITH. >> Molly: I WOULDN'T CHARACTERIZE IT THAT WAY, COUNCILWOMAN. LOOK, THERE'S SOME REALLY GOOD FIRMS OUT THERE. WE WERE FORTUNATE TO GET THREE REALLY QUALIFIED FIRMS THAT WANTED TO DO BUSINESS IN THE CITY OF CORPUS CHRISTI. WE GOT THREE FIRMS THAT HAD INTERNATIONAL EXPERIENCE. AXIONA OUT OF SMITH AND ANOTHER ONE BASED OUT OF BOSTON, MASSACHUSETTS. THEY DO DESAL AROUND THE WORLD. I THINK THAT PART OF WHAT IS IMPORTANT IS MAKING SURE THAT WE HAVE A PROJECT THAT THE CONTRACTOR COMMUNITY WANTS TO ENGAGE IN. AND SO THERE WAS A LOT OF INTEREST IN THIS FOR A NUMBER OF REASONS. I MEAN, WE CAN GO DOWN THE LIST BUT, YOU KNOW, I THINK THE OTHER PART OF IT IS THAT I KNOW YOU HAVE SOME RESERVATIONS ABOUT STAFF BEING PLUGGED INTO DIFFERENT PROFESSIONAL ORGANIZATIONS. AND I KNOW WE HAD THIS CONVERSATION A LITTLE BIT BUT, YOU KNOW, THE TEXAS DESAL ASSOCIATION IS NOT JUST ABOUT SEAWATER DESAL, IT'S BRACKISH GROUNDWATER DESAL. >> Campos: YOU MENTIONED THAT. >> Molly: SO TAKING SALT OUT OF WATER IS WHAT WE DO FOR SEAWATER AND FOR GROUNDWATER. SO I THINK FROM THAT STANDPOINT THERE'S A LOT OF GOOD OPPORTUNITIES TO LEARN FROM PEOPLE WHO HAVE DONE THIS A FEW MORE TIMES THAN BRETT AND I. AND JUST LEARN HOW TO MAKE SURE THAT WE ARE DOING THINGS AS BEST AS WE CAN FOR OUR COMMUNITY. >> Campos: AND THANK YOU FOR, YOU KNOW, FOR STATING THAT. BUT, AGAIN, IT'S COMING DOWN TO COST AND THAT'S THE OTHER THING THAT WE HAVE NOT HAD THE PRIVILEGE OF GETTING. WE'RE STILL NOT THERE AND WE KEEP BEING TOLD WE'RE GOING TO GET IT, WE'RE GOING TO GET IT. BUT HERE WE ARE IN ALMOST JULY AND WE STILL DO NOT HAVE A COST AND THIS IS WHAT'S SO IMPORTANT. WE WANT TO KNOW WHAT'S ACTUALLY GOING ON. THAT'S WHY WE NEED TO SEE SOME OF THESE CONTRACTS, SOME OF THESE NUMBERS. THERE IS NO OVERSIGHT. JUST LIKE WE DIDN'T HAVE ANY WITH THE AMERICAN BANK CENTER. I'M SORRY TO THROW THAT OUT THERE AGAIN BUT THAT IS WHAT IS MISSING, ESPECIALLY IN THIS PROJECT. WE ALREADY KNOW WHAT IS GOING ON WITH OUR WATER WELLS. WE KNOW WHAT THE COST IS. WE KNOW HOW MUCH WE'RE GETTING. WE KNOW WHAT THE TPS IS. WE KNOW A LOT OF THINGS. WELL, MORE THAN WE DO ON THIS PROJECT. BUT THE DESAL SEEMS TO BE JUST THIS BIG OLD HUGE ENTITY THAT WE DON'T HAVE A REAL GRASP AT. AS MUCH AS Y'ALL KEEP GIVING US THESE BRIEFINGS OR WHATHAVE YOU, AT THE END OF THE DAY WE STILL DON'T HAVE A NUMBER. THAT'S WHERE I'M AT AND THAT'S WHY I AM SUPPORTING THIS RESOLUTION. THAT'S WHY I UNDERSTAND THE CITY ATTORNEYS PROBABLY NEED A LITTLE BIT MORE TIME TO REVIEW THAT. OKAY. I'M WILLING TO, YOU KNOW, GIVE THE TIME. BUT I DON'T THINK IT'S SAYING THAT WE'RE, YOU KNOW, TRYING TO, HOW SHOULD I SAY -- WELL, I'LL JUST LEAVE IT AT THAT. I'LL END IT THERE. >> JUST REAL QUICK -- COUNCILWOMAN, JUST A POINT OF CLARITY. I GUESS I MISUNDERSTOOD THE REQUEST ABOUT THE ETHICS SUBMISSIONS. WE DO THOSE ANNUALLY. I THOUGHT YOU WERE TALKING SPECIFICALLY FOR THE PROJECT. >> Campos: SO YOU DO? >> YES. WE SUBMIT THEM EVERY YEAR. YES, THAT IS SOMETHING I DO. I APOLOGIZE FOR THE MISUNDERSTANDING. >> Campos: THANK YOU, BRETT. >> AND THE OTHER PART ABOUT THE COST -- I ASSUME WE'RE TALKING ABOUT THE TOTAL ESTIMATED PROJECT COST. SO I THINK -- I FELT LIKE WE HAD BEEN UP FRONT ABOUT WHEN THOSE DELIVERABLES WOULD BE RECEIVED. SO WE HAVE THE COST MODEL, WHICH IS AN EXPECTED DELIVERABLE AT THE END OF PHASE 1A. WHICH WAS SUBMITTED ON TIME BY KIEWIT AND IS CURRENTLY IN REVIEW. THAT'S WHAT WE'RE GOING TO SHOW ON JULY 15. THE NEXT TIME YOU'RE REALLY GOING TO SEE A BIG UPDATE WILL BE AT THE 30% DESIGN. AND THE LAST UPDATE WILL BE AT THE 60%. NOW ANY TIME BETWEEN THEN WE CAN ABSOLUTELY SHARE COST UPDATES ON VALUE ENGINEERING EFFORTS, DESIGN CHANGES, EFFICIENCY CHANGES. WE'RE WILLING TO SHOW THAT AND WE CAN ABSOLUTELY DO SO AT THE PRESENTATIONS AT CITY COUNCIL. BUT WE REALLY HAVE THREE, I WOULD SAY, DELIVERABLE POINTS. ONE BEING JUNE 1 WHEN WE GET THE 30% DESIGN, WHICH WILL BE IN THE NEXT, YOU KNOW, TWO MONTHS. AND THEN AT THE 60%. >> Campos: FORTUNATELY, WE DO HAVE AT LEAST ALTERNATIVES, ESPECIALLY NOW WITH SOME OF THE OTHER PROJECTS, WHICH I'M HOPEFUL NOW, YOU KNOW, WITH THE SOUTH TEXAS WATER AUTHORITY, WITH THE WATER WELLS, WITH THE WATER REUSE. I WAS HOPING -- I THINK I ASKED YOU IF THERE'S ANY WAY THAT WE CAN SPEED UP THAT PROCESS, NOT 12 MONTHS BUT MAYBE NINE MONTHS. AND LOOKING AT ALL THOSE DIFFERENT PROJECTS, I MEAN, THEY ARE WAY, WAY LESS THAN THE DESALINATION FOR THE SAME AMOUNT OF WATER. THAT'S WHY WE ARE SO ADAMANT ABOUT MAKING SURE THAT WE ARE USING OUR TAX DOLLARS WISELY. SO THAT'S, YOU KNOW, THAT'S THE MAIN THING. RIGHT NOW WE'RE ABLE TO GET ALL THIS WATER, YOU KNOW, THE 28 HOPEFULLY MGD FROM THE SOUTH TEXAS WATER, FROM THE WATER WELLS. I THINK WE'RE GETTING LIKE, WHAT? 12 13. AND THEN WHO KNOWS? WE'VE BEEN GETTING A LOT OF RAIN LATELY. THAT COULD BE THE OTHER FEATHER IN THE CAP. >> Mayor Guajardo: DREW, ARE WATER WELLS SUSTAINABLE FOR THE NEXT 100 YEARS? >> Molly: WELL -- >> Mayor Guajardo: IF THAT'S ALL WE HAD. >> Molly: GROUNDWATER HAS CHALLENGES. I MEAN, YOU KNOW, ONE OF THE THINGS THAT YOU TURN ON THE NEWS OR YOU READ REPORTS, HOUSTON IS THE FASTEST-SINKING CITY IN THE UNITED STATES. YOU KNOW, THERE ARE CHALLENGES WITH GROUNDWATER. GROUNDWATER IS NOT HERE FOREVER. IT'S A FINITE RESOURCE. AND SO I THINK WHAT'S IMPORTANT IS THAT THE SUPPLY STRATEGY THAT WE ARE GOING TO PUT FORWARD AS WE GO OVER THE NEXT COUPLE OF WEEKS, WE BELIEVE IS ONE THAT'S GOING TO PROVIDE THE BEST COST OPTION THAT ALLOWS US TO HAVE THREE LEGS ON THE STOOL. WHAT I MEAN BY THAT IS A SURFACE WATER LEG, A GROUNDWATER LEG, AND A SEAWATER LEG. SEAWATER IS SUSTAINABLE. IT IS THERE FOR A LOT LONGER THAN GROUNDWATER. WE WANT TO MAKE SURE THAT WE HAVE A DIVERSE WATER SUPPLY. AND WE THINK THAT GROUNDWATER IS AN IMPORTANT PART OF THAT AND I THINK WE ALL RECOGNIZE THAT SEAWATER IS AN IMPORTANT PART OF THAT. >> Mayor Guajardo: RIGHT. COUNCILMAN BARRERA. >> Barrera: PUT THE CLOCK UP THERE PLEASE. THANK YOU. I HAVE TO AGREE WITH MARK. WE ALL TALK ABOUT TRANSPARENCY BUT YET WE PUT SOMETHING ON THE AGENDA AT 3:30 ON A FRIDAY AFTERNOON AND, YOU KNOW, I FEEL LIKE -- I DON'T KNOW HOW MANY TIMES I HAVE GONE THROUGH THIS. I FEEL LIKE IF YOU'RE DEFUSING A TICKING TIME BOMB AND THAT CREATES PRESSURE. THE PRESSURE FROM THE PHONE CALLS OR THE TEXT ARE AS A RESULT OF THIS IS SO IMPORTANT TO THE TEXAS ECONOMY. WE HAVE LOST BILLIONS OF DOLLARS OF INVESTMENT IN CORPUS CHRISTI BECAUSE OF OUR INABILITY TO MAKE DECISIONS AND WHAT WE'RE TRYING TO DERAIL. BECAUSE IT SEEMS THAT THERE ARE FORCES -- I'M NOT SAYING CAROLYN IS -- BUT THERE ARE FORCES TO OBSTRUCT. AND SO WHEN WE JUMP ON BOARD WITH THIS, ALL OF A SUDDEN IT'S LIKE, OOH, MAN, DO I WANT TO DO BUSINESS THERE? AND THOSE ARE THE THINGS WE HAVE TO DO. I GUESS THERE ARE SOME QUESTIONS. WHEN I READ HERE IS IT SAYS TO RESCIND THE RESOLUTION. AND I GOT A LOT OF QUESTIONS ABOUT THAT. I DON'T KNOW WHAT THAT MEANS. AND THERE WAS NO BACKUP INFORMATION TO TELL ME WHAT THAT MEANS. THERE'S NO AGENDA MEMO THAT TELLS ME WHAT THAT MEANS. AND THEN WE SAY WE'RE GOING TO REMOVE THE AUTHORITY. WELL, WHAT DOES THAT MEAN? THERE'S NO DOCUMENTS. THERE'S NO -- IF YOU CLICK ON THIS LINK HERE THEN WE'VE GOT A WHOLE BUNCH OF PAGES OF DOCUMENTS TO REVIEW. I MEAN, WE KILL TREES TO PUT THAT TOGETHER. SO I DON'T KNOW WHAT THAT MEANS. WHAT IS THE NORMAL PROCUREMENT PROCESS? I DON'T KNOW WHAT THAT MEANS. DREW, WHEN YOU DID THE LARGEST WATER TREATMENT FACILITY IN THE WORLD -- >> Molly: YES, SIR. >> Barrera: WHAT WAS THE PROCUREMENT PROCESS? >> Molly: WE USED A PROGRESSIVE DESIGN-BUILD APPROACH. AND PART OF IT WAS FOR THAT PROJECT, WE DIDN'T HAVE ALL OF OUR PERMITS AT THE TIME. ONE OF THE THINGS THAT WAS AN ADVANTAGE -- AND KEEP IN MIND THIS PROJECT WAS SIMILAR IN SOME WAYS BECAUSE WE DIDN'T HAVE ALL OUR PERMITS WHEN WE STARTED THIS PROJECT. WE KNEW WHAT THE END GAME WAS BUT WE KNEW THERE WERE ASPECTS OF THIS PROJECT THAT WE HAD TO ATTAIN AS WE WERE GOING ALONG. SO A PROGRESSIVE DESIGN-BUILD PROGRESS ALLOWED US TO BRING ON A DESIGNER AND A CONTRACTOR, ONE OF THE SAME, TO HAVE A SINGLE POINT OF RELATIONSHIP WITH THE DESIGNER AND THE BUILDER. WE'RE NOT HAVING TO DEAL WITH TWO SEPARATE ENTITIES. IT MADE A LOT OF SENSE FOR US ON THAT PROJECT. I THINK THIS ONE WAS ANOTHER ONE THAT MAKES A LOT OF SENSE FOR THE ALTERNATIVE METHOD THAT WE USE FOR DELIVERY OF THIS PROJECT. >> Barrera: I APPRECIATE THAT. SO YOU'VE HAD -- HOW LARGE WAS THAT PROJECT? >> Molly: IT WAS A 320 MILLION-GALLON A DAY EXPANSION AT NEARLY $2 BILLION. THE OVERALL PROJECT WAS A $6 BILLION PROJECT. >> Barrera: DID THAT -- WAS -- I GUESS IT HAD A GUARANTEED MAXIMUM PRICE AS WELL? >> Molly: WELL, IT DID. IT HAD A GUARANTEED MAXIMUM PRICE AT ABOUT 60%. THE CONTRACTOR WHO DID THE WORK WAS A COMPANY CALLED JACOBS, CDM SMITH. IT WAS A JOINT VENTURE BETWEEN THE TWO OF THEM. VERY SUCCESSFUL PROJECT. HOUSTON WAS FORTUNATE, LIKE WE ARE FORTUNATE ON THIS PROJECT. THERE WAS A LOT OF INTEREST IN THAT AND I THINK THE CONTRACTOR COMMUNITY FELT LIKE, YOU KNOW, THERE WAS AN OPPORTUNITY TO HAVE AN OPPORTUNITY TO WORK ON A PROJECT WHERE THERE WAS SPENDING AUTHORITY THAT WAS PROVIDED TO OUR PROJECT DIRECTOR AND, YOU KNOW, THEY HAD TO GO THROUGH CHECKS AND BALANCES TO BASICALLY SPEND THOSE FUNDS. >> Barrera: AND THEN I APPRECIATE THAT. I'M FRUSTRATED BECAUSE LEFTLIN HAS BEEN HERE TWICE TO EXPLAIN THE PROCESS AND WE JUST HAVE A BETTER IDEA. THE CHALLENGE IS WHAT I CALL THE NINE LAYMEN. WE'RE DEALING WITH A LOT OF SPECULATION. I HEARD $1.2 BILLION. $1.8BILLION. THERE'S NO SCIENCE BEHIND THAT. WE'RE INJECTING A LOT OF HYPOTHETICALS WITH NOTHING TO STAND BY AND NO WAY TO SAY WHAT'S REALISTIC. AND THEN WHEN WE SAY I DON'T TRUST YOU, WHY BOTHER? JUST VOTE NO ALL THE TIME. IT'S FRUSTRATING FOR ME TO GOVERN BECAUSE AS I HAVE SAID BEFORE -- AND MYSELF AS A RISK MANAGER -- BECAUSE THAT'S WHAT I DO AT THE VERY CORE -- IS TO PROVIDE A PREDICTABLE ENVIRONMENT. AND RIGHT NOW WE'RE NOT PROVIDING A PREDICTABLE REGULATORY ENVIRONMENT. AND ONCE WE REMOVE THAT, THEN WHAT'S GOING TO HAPPEN WITH KIEWIT? WE DON'T KNOW THAT ANSWER. AND I WISH WE COULD ALL -- I'M OPEN MINDED. I WANT TO BE ABLE FOR YOU TO HAVE A COMFORT LEVEL. I WANT YOU TO HAVE A COMFORT LEVEL BECAUSE YOU OWE IT TO THE PEOPLE WHO ELECTED YOU. BUT I THINK UNDERSTANDING WHAT'S NORMAL, I MEAN, WHAT WAS NORMAL IN A MULTIBILLION-DOLLAR PROJECT IS WHAT WE'RE DOING TODAY. WHY DON'T WE JUST PICK UP THE PHONE? WHEN WE DON'T PICK UP THE PHONE, ALL OF A SUDDEN WE HAVE AN ITEM ON THE AGENDA AND WE'RE SPENDING A LOT OF ENERGY TRYING TO FIGURE ALL THIS OUT. AND RIGHT NOW, YOU KNOW, BASED ON THE NUMBERS THAT WE GOT FROM SOUTH TEXAS WATER AUTHORITY, I MEAN FROM THE RESEARCH THAT I'VE GOTTEN FROM STAFF, IT'S MORE EXPENSIVE THAN SEAWATER DESALINATION. AND WE OWN THIS ASSET TO AN INFINITE RESOURCE. SO, YOU KNOW, FINE. I WANT THOSE QUESTIONS ANSWERED. BUT I JUST THINK HERE WE'RE RUSHING NOW WHEN WE DON'T KNOW THE NUMBERS. YOU KNOW, WE PUT A THREE-SIGNATURE MEMO WHEN WE DON'T KNOW THE NUMBERS OR THE OPPORTUNITY AND WE'RE TRYING TO DEFINE THAT FOR SOUTH TEXAS WATER AUTHORITY, WHICH I SUPPORT. BUT ALL OF A SUDDEN NOW WE NEED -- HOLD ON. WE NEED TO FIND OUT WHERE WE'RE AT. WE NEED TO FIND OUT WHERE WE'RE AT. THE WEBSITE. DO YOU KNOW WHAT I THINK? THAT'S AN AMAZING ANSWER. JUST LIKE WE HAVE THE CHECK REGISTER ONLINE, ANY TIME YOU HAVE AN EXPENDITURE AND AMENDMENT, PUT IT ON THE WEBSITE. DAMN IT, DO IT NOW. I WANT TO KNOW BY MONDAY MORNING OR FRIDAY AFTERNOON, IF POSSIBLE, HOW MUCH WE HAVE SPENT ON THIS AND WHAT ARE THE CONSEQUENCES OF AN OFF RAMP? WHAT ARE THE CONSEQUENCES, WHAT IS THE TOTAL DOLLAR AMOUNT IF WE FORFEIT ON THE $200 MILLION THAT WE'VE SAID TO SPEND. I REALLY WANT TO KNOW THAT. I THINK THAT'S A GREAT IDEA, JANET. HERE'S ONE THING -- AND I GOT TWO SECONDS LEFT. DARN IT. I'LL HAVE TO SPEAK AGAIN. [TIMER] >> Mayor Guajardo: OKAY. THANK YOU. COUNCILMAN ROY. >> Roy: YOU KNOW -- AND COUNCILWOMAN VAUGHN A COUPLE OF WEEKS AGO YOU SAID I DON'T SPEAK ON BEHALF OF ALL OF COUNCIL. BUT I WANT TO PARAPHRASE WHAT I THINK I HEAR THE MAJORITY OF COUNCIL SAYING IS THAT YOU WANT SOME OVERSIGHT, RIGHT? WHEN I LOOK AT THE FACT THAT WE CONSTRUCTED A DOCUMENT THAT ENDS UP ON OUR AGENDA -- AND I NEED SOME INPUT ON THIS IF ANYBODY HAS IT THAT PUT THIS DOCUMENT TOGETHER. IT'S HARD TO CHOOSE THE WORDS THAT YOU WANT TO USE TO CONVEY THE MESSAGE THAT YOU'RE TRYING TO CONVEY OR YOUR CONCERN. BECAUSE IT HAS CAUSED SOME COMMUNICATION, I HAVE HAD A LOT OF PHONE CALLS, WHAT DO THEY MEAN BY THIS OR THAT? BUT IT'S TOUGH. HERE WE ARE. WE'RE HERE TODAY, RIGHT NOW, AND I THINK THE GENERAL CONSENSUS IS THAT THERE JUST WANTS TO BE SOME OVERSIGHT. AND WE TALKED ABOUT PUTTING IT ON THE WEBSITE. THAT'S A START. BUT I WANT TO GO BACK -- I DON'T REMEMBER IF IT WAS COUNCILMEMBER HERNANDEZ OR WHO SAID THAT MAYBE WHAT WE NEED TO DO IS PAUSE THIS THING AND TAKE A LOOK AS FAR AS WHAT WE CAN DO TO MAKE EVERYBODY COMFORTABLE. BECAUSE THAT'S REALLY WHAT I'M HEARING. THERE'S A LOT OF MONEY. PEOPLE ARE SAYING THAT WE'RE NOT BEING GOOD STEWARDS AND SO BECAUSE I HEAR, FROM WHAT MOST PEOPLE SAY RIGHT NOW, FOR THE MAJORITY OF OUR COUNCIL -- AGAIN, I'M NOT TRYING TO SPEAK ON BEHALF OF ALL OF COUNCIL. THEY SAY I WANT TO PROCEED WITH DESAL. YOU KNOW, THIS IS A TOUGH THING BECAUSE AS WE SIT HERE AND WE TALK ABOUT THIS, WE'VE GOT THE REST OF THE WORLD WATCHING US. SO WE HAVE AUSTIN THAT MAY -- AND ERIC'S NOT HERE -- BUT ERIC ASKED THE QUESTION EARLIER, WHAT GRANTS HAVE YOU COME UP WITH? WHAT MONIES HAVE YOU COME UP WITH ON THE FEDERAL LEVEL? WELL, IF I'M SITTING AT THE FEDERAL OR STATE LEVEL AND WE'RE HAVING THIS DEBATE RIGHT NOW AND I WAS GETTING READY TO PEEL OUT OF $50 MILLION, I MIGHT PUT A HALT TO THAT AND SAY DO THEY KNOW WHAT THEY'RE DOING DOWN THERE? DO THEY HAVE IT TOGETHER? DO THEY REALLY UNDERSTAND WHAT THEY'RE DOING AND WHAT'S AT STAKE HERE? SO THAT CONCERNS ME WHEN WE OPEN THINGS UP TO THE GENERAL PUBLIC LIKE THIS. RIGHT? BUT WE'RE HERE. WE'RE HERE ALREADY. SO WHAT I'M SAYING IS I DO THINK THAT WHAT EVERYBODY IS ASKING IS REALLY A SIMPLE THING -- AND MAYBE WE NEED TO TAKE A STEP BACK AND LOOK AT WHAT WE CAN DO TO COMMUNICATE BETTER. AND IF YOU THINK -- AND I'M SAYING THIS TO YOU AS THE MANAGER OF THIS PROJECT, THAT YOU'RE GOING TO SIT HERE AND NOT HAVE THE ABILITY TO IMPROVE THE COMMUNICATION, YOU'RE WRONG. THIS PROJECT WILL FAIL. IT WILL FAIL BECAUSE OF THAT. A SIMPLE THING LIKE COMMUNICATING. AND THAT'S WHAT WE HAVE TO DO. WE HAVE TO DO THAT. WE HAVE TO MAKE -- THERE'S WEAK AND THERE'S STRONG IN TERMS OF THEIR OPINION OF DESAL. BUT WE HAVE TO MAKE PEOPLE COMFORTABLE. AND IF YOU'RE NOT GOING TO MAKE THEM COMFORTABLE, I DON'T CARE IF YOU SPEND ONE HOUR MORE OR TWO HOURS MORE AND IT SLOWS YOU DOWN, IT'S GOING TO GET YOU TO THE FINISH LINE. AND THAT'S WHAT I'M ABOUT. I'M ABOUT THE FUTURE GENERATIONS OF THIS CITY AND THIS STATE TRYING TO RESOLVE THIS WATER PROBLEM AND MAKING SURE THAT WE DO GET TO THE END OF THE FINISH LINE. BECAUSE THAT'S WHAT MATTERS. GUESS WHAT. WHEN MY GRANDCHILDREN'S GRANDCHILDREN HAVE WATER, HOW WE GOT THERE ISN'T GOING TO BE RELEVANT. THE POINT IS THAT WE GOT THERE. I WANT YOU TO THINK ABOUT THAT. AND ALL THE SUPERLATIVES, AT THE END OF THE DAY WE HAVE TO UNDERSTAND THAT THIS IS A COMPROMISE. WE HAVE PEOPLE UP HERE THAT IT'S THEIR JOB TO MAKE THEM FEEL COMFORTABLE, AND WE HAVE TO MAKE THEM FEEL COMFORTABLE. THAT'S ALL I HAVE TO SAY. >> Mayor Guajardo: THANK YOU, COUNCILMAN. COUNCILMAN HERNANDEZ. >> Hernandez: OH, IT'S ME. OKAY. LOOK, THIS DOESN'T TERMINATE THE CONTRACT WITH KIEWIT. IT'S ALREADY SIGNED. YOU KNOW, I THINK THERE'S PRECEDENT ON THAT THAT YOU DON'T UNSIGN A CONTRACT. THIS IS JUST GOING BACK TO THE NORMAL PROCESS OF PROCUREMENT. THAT'S ALL IT IS. I'M SORRY THAT YOU FEEL IT'S INCONVENIENT THAT WE ARE EXPECTED TO DO OVERSIGHT AS COUNCIL. I DON'T THINK I SAID THOSE EXACT WORDS THAT COUNCILMAN ROY MENTIONED BUT ULTIMATELY WE ARE ACCOUNTABLE FOR THE SPENDING OF OUR RATEPAYERS' DOLLARS, RIGHT? WE SET THE RATES. YOU'RE GOING TO COME AND ASK US TO INCREASE RATES, RIGHT? SO, YOU KNOW, YOU DON'T WANT US TO CONTROL THE SPENDING BUT YET YOU WANT US TO ASK FOR MORE MONEY. AND THE BUDGET PROCESS IS COMING UP. SO I WANT TO MAKE SURE THAT I KNOW WHAT YOU'RE SPENDING IT ON. I DON'T KNOW WHAT YOU'RE SPENDING IT ON. THIS IS A BLANK CHECK FOR $138 MILLION. OKAY? I'M SORRY. I'M NOT COMFORTABLE WITH THAT. I WASN'T COMFORTABLE ON JUNE 25th OF LAST YEAR WHEN THIS PASSED. I REFUSED TO VOTE FOR IT. THIS IS JUST REALLY CHECKS AND BALANCES. NOTHING MORE. IT'S NOT SAYING -- IT IS FOR CONTROL OF THE DOLLAR THAT WE'RE ELECTED TO AND RESPONSIBLE FOR. $138MILLION IS A LOT OF MONEY. I THINK MOST IDIQ CONTRACTS ARE AROUND $10 MILLION. AT LEAST THAT'S WHAT I RECALL FOR THE SMALL DIAMETER AND THE LARGE DIAMETER PIPES. $10MILLION. YOU KNOW, I DON'T THINK THIS IS AN ISSUE. I THINK WE SHOULD VOTE ON THIS AND MOVE FORWARD AND THEN IF YOU HAVE SOMETHING THAT COMES UP, YOU CAN COME BACK AND TALK TO US ABOUT IT AFTERWARDS. THANK YOU. >> CAN I ASK ONE MORE QUESTION? IT SAYS A RESOLUTION TO RESCIND. THERE'S NO RESOLUTION ATTACHED TO YOUR MEMO SO IS IT A MOTION? >> Hernandez: THERE IS A RESOLUTION ATTACHED. I EVEN INCLUDED THE ORIGINAL RESOLUTION THAT DIDN'T GET TO THE AGENDA MEMO. BUT THE ORIGINAL RESOLUTION OF 03396 -- I FORGET. I INCLUDED -- WELL, IT WAS TURNED OVER TO THE CITY SECRETARY'S OFFICE. IT WAS NOT INCLUDED. BUT IT BASICALLY REFERS TO A LOT OF THE SAME LANGUAGE. IT ADDRESSES, YOU KNOW, JUST GOING BACK TO THE NORMAL PROCESS. I GUESS I COULD READ IT. >> SO YOU'RE RESCINDING -- IT'S JUST LIKE A RATIFICATION BUT AN OPPOSITE RIGHT? >> Hernandez: CORRECT. >> SO YOU'RE UNDOING THE ORIGINAL COUNCIL. SO THAT'S WHAT I'M SAYING -- THAT'S WHY LEGAL IS HAVING PROBLEMS BECAUSE YOU'RE RESCINDING, YOU'RE REMOVING THE ORIGINAL AUTHORIZATION AND SO NOW THE CITY MANAGER ILLEGALLY SIGNED A CONTRACT BECAUSE HE HAD NO AUTHORIZATION. >> Hernandez: OKAY. BUT HE'S ALREADY SIGNED THE CONTRACT. WE CAN'T UNSIGN THE CONTRACT. >> IT COULD BE A VOID CONTRACT. THEN YOU HAVE TO GO BACK TO STATE LAW AND IF THE CITY MANAGER HAD NO AUTHORITY TO SIGN THAT CONTRACT, NOW IT'S A VOID CONTRACT PER 2269 OF THE TEXAS GOVERNMENT CODE. >> Hernandez: YOU KNOW, I'VE NEVER SEEN THAT. WHEN YOU RESCIND AN AUTHORITY TO SPEND UP TO $138 MILLION -- >> BUT SEE YOU'RE NOT SAYING THAT. YOU'RE NOT RESCINDING THE AUTHORITY -- YOU'RE RESCINDING THE AUTHORIZATION TO SIGN A CONTRACT. AND HE ALREADY SIGNED THE CONTRACT SO NOW HE HAS NO AUTHORITY AND IT'S A VOID CONTRACT, PER TEXAS GOVERNMENT CODE 2269. >> Hernandez: YOU KNOW, YOU WOULD HAVE TO SHOW ME THE LANGUAGE ON THAT BECAUSE I DIDN'T SEE THAT. >> OKAY. >> Hernandez: I MEAN, THE CONTRACT WAS ALREADY SIGNED. AND HONESTLY, THE WAY THAT RESOLUTION WAS WRITTEN, WHERE WE PRE-AUTHORIZED HIM TO SIGN A CONTRACT THAT WE NEVER SAW THE VALUATIONS FOR -- >> IT'S JUST LIKE THE BONDS. >> Hernandez: I DIDN'T VOTE FOR THOSE EITHER. IT'S GIVING HIM A CARTE BLANCHE AUTHORITY TO DO ALL THIS STUFF WITHOUT COUNCIL APPROVAL, IS WHAT WE'RE REMOVING. IF YOU WANT US TO MODIFY OR SAY SOMETHING ALONG THE LINES OF WITH EXCEPTION OF CONTRACTS THAT HAVE ALREADY BEEN WRITTEN -- >> OKAY. YES. >> Hernandez: WOULD YOU BE OKAY WITH THAT? >> [OFF MIC] >> Hernandez: UNDER SECTION 1, I'LL MAKE A MOTION TO AMEND WITH THE EXCEPTION OF CONTRACTS WHERE AN AMENDMENT IS ALREADY WRITTEN. WOULD THAT SUFFICE? CONTRACTS AND AMENDMENTS ALREADY WRITTEN. WOULD THAT SUFFICE YOUR CONCERNS? >> Mayor Guajardo: THANK YOU, GIL. HOLD ON. I'M GOING TO HAVE HER DO THAT. I'M GOING TO HAVE HER SAY IT. SHE'LL CLARIFY. CAN YOU TELL US? >> THERE IS AN AMENDMENT 1B2. SO WE HAVE GIVEN A DIRECTION WHILE WE NEGOTIATE THE DOLLAR AMOUNT. SO THE AUTHORIZATION HAS ALREADY BEEN GIVEN FOR THE SCOPE OF WORK AND SO WE WANT TO MAKE SURE THAT WITH THE EXCEPTION OF CONTRACTS AND AMENDMENTS AND WORK DIRECTIVES. CAN WE ADD "WORK DIRECTIVES"? >> Hernandez: 1A HAS ALREADY BEEN EXECUTED. YOU'RE IN THE PROCESS OF NEGOTIATING 1B. >> NO, SO 1B, BECAUSE OF THE PROGRESSIVE NATURE, WE ARE DOING STEPS. WE ARE DOING -- >> Hernandez: OBVIOUSLY YOU HAVE STEPS AND THEN YOU GET TO THE 60% AND THERE'S ANOTHER STEP AND THEN THERE ARE STEPS AFTER THAT. >> RIGHT. SO THE PROGRESSIVE NATURE AND THE NEGOTIATION AND THE CHECKS AND BALANCES THAT ARE IN PLACE. >> Hernandez: WHAT CHECKS AND BALANCES? >> WE HAVE THEM. WHAT SHE'S TRYING TO SAY IS EVERY AMENDMENT WE'RE CALLING STEPS. SO WE'RE USING THAT TERM INTERCHANGEABLY. OUR STEP TWO, WHICH IS NOT AN AMENDMENT YET, WE HAVE ISSUED A WORK DIRECTIVE AUTHORIZING HIM TO PERFORM THE WORK. AND WE HAVEN'T EXECUTED THE AGREEMENT WITH THEM YET, THE AMENDMENT. >> Hernandez: JUST COME BACK TO COUNCIL WITH THAT. THERE'S NO ISSUE WITH THAT. JUST TELL US -- >> I GUESS THE QUESTION IS SIMILAR TO THE RESCINDING QUESTION IS DOES THAT RESCIND THE AUTHORITY TO AUTHORIZE THEM TO PROCEED WITH THAT WORK, SINCE THAT WAS -- >> Hernandez: YOU SAID YOU'RE IN NEGOTIATIONS WITH THEM. >> YES. I'M OKAY WITH THE -- BECAUSE THE WORK DIRECTIVE WAS GIVEN UNDER THE CONTRACT TERMS AND CONDITIONS. IT'S NOT A SIGNED AMENDMENT YET. SO WE'RE OKAY. WE CAN STILL BRING THAT BACK TO CITY COUNCIL FOR THE ACTUAL AUTHORIZATION FOR THE AMENDMENT. >> Hernandez: CAN YOU READ THE LANGUAGE THAT I HAD GIVEN TO YOU, WITH THE EXCEPTION OF EXISTING OR -- >> YEAH. WITH THE EXCEPTION OF THE AUTHORIZED -- PREVIOUSLY-AUTHORIZED CONTRACTS AND AMENDMENTS. >> Hernandez: CORRECT. OKAY. CAN I GET A SECOND? >> SECOND. >> Mayor Guajardo: OKAY. SO EXPLAIN IT ALL. WHERE ARE WE? BECAUSE YOU JUST SAID A MINUTE AGO THAT THIS WAS -- WE COULDN'T DO IT. START FROM THERE AND HOW WE GOT TO NOW WE CAN. >> WE CANNOT RESCIND THE RESOLUTION BECAUSE IT UNDOES THE AUTHORIZATION. WHAT GIL WAS PROPOSING IS SAYING, OKAY, WE'RE RESCINDING EXCEPT FOR -- SO HE'S PUTTING AN EXCEPTION IN THERE. EXCEPT FOR THE AUTHORIZATION THAT HAS ALREADY BEEN EXECUTED. >> Mayor Guajardo: SO MOVING FORWARD BASICALLY. >> SO MOVING FORWARD. AND I WOULD LIKE TO ADOPT COUNCILPERSON PAXSON'S RECOMMENDATION TO PUT A THRESHOLD LIMIT. ON THE MARY RHODES PIPELINE, WE HAD A 5% AUTHORIZATION FOR CHANGE ORDERS, BECAUSE IT WAS A -- >> WAS THAT AN AGGREGATE, JANET? >> IT WAS AN $84 MILLION PROJECT AND SO COUNCIL GAVE CITY MANAGER OR THE DESIGNEE AUTHORIZATION TO EXECUTE CHANGE ORDERS UP TO 5% OF THE CONTRACT VALUE, WHICH I THOUGHT IT CAME OUT TO $2 MILLION CHANGE ORDERS. I WOULD PREFER IF WE COULD PUT -- BECAUSE OF THE DOLLAR AMOUNT OF THIS PROJECT AND THE DESIGN PHASE WORK -- RIGHT NOW I KNOW AT THE END OF JULY WE ARE GOING TO EXECUTE AN AMENDMENT FOR THE REMAINDER OF THE DESIGN UP TO 60%. THAT ONE'S GOING TO BE A HIGH DOLLAR AMOUNT. BUT THESE OTHER EARLY WORK PACKAGES AND PURCHASING OF THE TRANSFORMERS FOR ELECTRICAL, SO MAYBE WE DON'T WANT TO BRING EVERY SINGLE AMENDMENT TO CITY COUNCIL UNTIL THE GMP. OR MAYBE YOU DO. >> Mayor Guajardo: DREW, WHAT DO YOU SUGGEST? I'M SORRY, GIL. WE HAVE GONE BACK AND FORTH HERE. WHAT ARE YOUR THOUGHTS ON THAT. I THINK WE TALKED ABOUT THIS 30% OR 20%, JUST BASED ON THE PROJECT COST. YOUR RECOMMENDATION? >> Molly: SO, I WOULD SAY THAT IT MAKES SENSE IN MY MIND -- OBVIOUSLY THERE'S QUESTIONS ABOUT HOW -- I'LL JUST SAY IT. THERE'S QUESTIONS ABOUT HOW THE COOKING IS DONE IN THE KITCHEN. THAT'S JUST SORT OF THE ANALOGY THAT I COME UP WITH. AND SO TO PUT THAT REST ASSURE, I THINK JANET IS TALKING ABOUT REALLY THE NEXT BIG ITEM THAT WE WOULD BE TAKING TO KIEWIT WOULD BE THE BALANCE OF THE DESIGN PHASE SERVICES TO GO TO 60%. THAT SCOPE OF WORK IS BEING NEGOTIATED AND THAT IS SOMETHING THAT WOULD COME TO COUNCIL NOW WITH, IT SOUNDS LIKE AN APPROVAL, AND THAT WOULD BE COMING TO COUNCIL LATER IN JULY IS WHAT THE EXPECTATION IS. AND SO I GUESS PERHAPS WHAT MAKES SENSE BASED ON THIS MEMO, THIS CHANGE, WOULD BE TO HAVE THAT AUTHORIZATION PROVIDED OR PRESENTED TO COUNCIL AND THEN HAVE COUNCIL AUTHORIZE THAT WORK, BASED ON THAT PRESENTATION. >> Mayor Guajardo: YOU KNOW, I'M GOING TO GO BACK TO THIS SUBJECT MATTER NEEDS TIME OF ITS OWN. AGAIN, PETER'S NOT HERE. WE'VE GOT LEGAL, WE'VE GOT EVERYTHING GOING IN ALL DIRECTIONS AND WE'RE NOT EVEN DONE WITH OUR AGENDA. AND I DON'T UNDERSTAND WHAT THE RUSH IS. SO IF Y'ALL REALLY WANT TO ACCOMPLISH THIS, WHY NOT SIT DOWN AT THE TABLE WITH EVERYONE AND SAY LET'S ACCOMPLISH THIS? BECAUSE AS I MENTIONED TO YOU THIS MORNING, THERE'S MERIT IN WHAT YOU'RE SAYING AND I TALKED TO DREW ABOUT WHAT IF WE PUT A 30% MILESTONE AND AN ACTUAL PHYSICAL MILESTONE? THIS IS JUST SO CONVOLUTED AND WHAT'S THE RUSH? WE COULD DO THIS IN A WEEK, YOU KNOW, AND SIT DOWN, ALL OF YOU, THE THREE OF YOU, THE CITY MANAGER, DREW AND REALLY MAKE SURE WE ARE CROSSING OUR Ts AND DOTTING OUR Is. AND THEN WE BRING IT BACK. NO ONE UP HERE IS SAYING, NO, ABSOLUTELY NOT. AND, YOU KNOW, I DON'T UNDERSTAND WHAT THE HARM IS IN THIS. INSTEAD OF RUSHING AND CHANGING WORDS AND PRAYING THAT THAT CONTRACT DOESN'T SAY THIS AND THIS DOESN'T SAY THAT, I MEAN, WE'RE IN AS DEEP AS WE ARE. THAT'S GOING TO TAKE SOME TIME TO SAY, ALL RIGHT, >> Mayor Guajardo: AND MAKING SURE WE DON'T OVERSTEP ANYTHING. THERE'S NOTHING WRONG WITH THAT. I JUST -- THAT'S WHAT I'M ASKING Y'ALL TO PLEASE CONSIDER. THIS IS TAKING -- YOU KNOW, I DON'T CARE, I'LL BE HERE, BUT, YOU KNOW, WE DON'T NEED TO BE CUTTING MEETINGS BACK TO TWO A MONTH, I'LL TELL YOU THAT, BECAUSE THIS IS AN INEFFICIENCY. AND ALL IT TAKES IS TO SAY, LET'S GO SIT DOWN AT THE TABLE ON THE SIXTH FLOOR, WHEREVER, MY OFFICE, WHEREVER, AND LET'S TALK ABOUT ALL OF IT WITHOUT RUSHING, WITH CALM, WITHOUT TRYING TO FIGURE OUT WHAT'S IN THIS CONTRACT OR WHO -- WHAT DID WE DO HERE OR THERE, AND THEN WE'LL BRING IT BACK. NO ONE IS SAYING NO. I DON'T SEE ONE PERSON SAYING ABSOLUTELY NOT. SO I'M GOING TO ASK Y'ALL TO -- WOULD YOU BE AMENABLE TO THAT? >> Vaughn: LET ME JUST SAY THIS. THIS HAS GOTTEN A LITTLE OUT OF HAND. >> Mayor Guajardo: YEAH. >> Vaughn: ALL I WANTED TO DO WAS BE TRANSPARENT FOR THE CITIZENS. AND EVERETT, I APPRECIATE WHAT YOU SAID, BECAUSE YOU GET IT. AND YOU'RE RIGHT, WE NEED TO UNDERSTAND, BUT THE CITIZENS NEED TO UNDERSTAND AND THEY DON'T UNDERSTAND. YOU CAN ALL SAY WHAT YOU WANT TO, THEY DON'T UNDERSTAND. WE'VE NOT COMMUNICATED THAT TO THEM. ALL I WANT TO DO IS HAVE THE CITY MANAGER ACCOUNTABLE WHENEVER HE SPENDS SOMETHING THAT IT GETS APPROVED. THAT'S NOT ASKING TOO MUCH. I WOULDN'T GIVE HIM A MILLION DOLLARS OF MY MONEY AND SAY, HEY, GO SPEND IT WHATEVER YOU WANT TO. YOU DON'T NEED MY APPROVAL. MY SUGGESTION IS ALL THE CITY NEEDS TO DO IS COME BACK WITH A 30-DAY SPENDING PLAN FOR COUNCIL TO APPROVE THE FIRST OF EVERY MONTH. WHATEVER HE'S GOING TO SPEND, JUST BRING IT BACK AND LET US SAY, OKAY, GO, YOU'VE GOT -- I MEAN, IS THAT SO HARD TO DO? >> I'LL START QUICKLY, BUT I MEAN, THAT'S SOMETHING THAT WE COULD TAKE A LOOK AT AND WE COULD GO BACK AND FIGURE OUT IF THAT DOES MAKE SENSE. I JUST ASK BRETT A SECOND AGO, IS THERE ANYTHING ON THE CRITICAL PATH BETWEEN NOW AND JULY 15TH THE NEXT COUNCIL MEETING THAT NEEDS A CONTRACT AMENDMENT, AND THERE IS ONE ITEM ON THE CRITICAL PATH AND ONLY ONE, SO, I MEAN, IF WE HAVE 30 DAYS AHEAD OF TIME AND COME TO COUNCIL FOR APPROVAL, I WOULD HAVE TO ASK BRETT ON THAT ONE. >> YEAH, AGAIN, I THINK DURING THE DESIGN PHASE, I THINK WE COULD PROBABLY DO THAT. AGAIN, CONSTRUCTION, IT'S VERY HARD TO PREDICT. I CAN GIVE YOU ANTICIPATED DRAWDOWNS, BUT IT'S NOT GOING TO BE -- AS LONG AS WE UNDERSTAND THAT WHAT'S PROVIDED IS GOING TO BE A BEST GUESS ON WHAT IT WOULD BE, BECAUSE YOU NEVER KNOW WHAT -- YOU KNOW, FOR CONSTRUCTION, YOU ALWAYS BILL IN ARREARS, RIGHT? YOU BILL ON WHAT YOU'VE ACTUALLY DONE. SO YOU CAN FORECAST WHAT YOU'RE GOING TO ACHIEVE, BUT I JUST WANT TO MAKE SURE THAT EVERYONE UNDERSTANDS IF I COME IN HERE AND I SAY I'M GOING TO SPEND $100 FOR THE NEXT MONTH AND I SPEND $50, THAT YOU UNDERSTAND AND I CAN EXPLAIN WHY, OR ON THE FLIP SIDE, IF I SPEND $200, YOU UNDERSTAND WHY. SO AS LONG AS WE ESTABLISH PARAMETERS AND EXPECTATIONS ON WHAT THAT LOOKS LIKE, I CAN -- >> Vaughn: AND GUYS, THE ONES UP HERE THAT HAVE DONE THIS, THERE'S FIVE UP HERE THAT WANT TO DO THIS AND MAKE SURE THEY'RE ACCOUNTABLE, I'M NO T SAYING THE REST OF THEM DON'T WANT TO BE ACCOUNTABLE. THERE'S NOTHING WRONG WITH US TRYING TO BE ACCOUNTABLE TO THE PUBLIC. SO DON'T MAKE ANYONE LET YOU FEEL LESS THAN WHAT YOU ARE, BECAUSE WE HAVE A RIGHT TO DO THIS. YOU WERE ELECTED TO DO THAT. I'M NOT CALLING ANYBODY'S NAMES, I'M JUST SAYING DO NOT. WE'RE NOT ILL PREPARED, THIS IS WHAT WE WANTED TO DO, AND ALL WE'RE ASKING FOR IS ACCOUNTABILITY. SO STAND TALL AND SAY THANK GOODNESS BECAUSE THE CITIZENS WANT ACCOUNTABILITY. AND WE NEED TO MOVE FORWARD WITH THAT. I'M NOT SURE WHAT YOU GUYS WANT TO DO. GIL, YOU'VE GOT A MOTION ON THE TABLE. >> Hernandez: WE'VE GOT A MOTION AND AMENDMENT. >> [OFF MIC] >> Mayor Guajardo: AND SO DO THREE OTHER PEOPLE AFTER. >> Paxson: THANK YOU. I DID GET SKIPPED, I WASN'T TALKING OUT OF LINE. >> Mayor Guajardo: WELL -- >> Paxson: THANK YOU. MR. -- DREW, YOU -- A COLLEAGUE HERE, MR. -- COUNCILMAN BARRERA SAID HE WAS GIVEN INFORMATION FROM STAFF ON PROBLEMATIC COSTS OF SOUTH TEXAS WATER AUTHORITY. COULD YOU FORWARD THAT, BECAUSE I'D LIKE TO BE PRIVY TO THAT AS WELL. THAT WOULD BE HELPFUL. THANK YOU. AND THEN YOU GUYS SAID TO ME WHAT WE NEEDED. AND IT HELPS ME IN REALTIME AND WHEN WE LEAVE THESE CHAMBERS, HOPEFULLY IN LESS THAN THE NEXT FOUR HOURS, BUT WHEN WE LEAVE THESE CHAMBERS GIVES US SOMETHING TO TELL THE PUBLIC, WHICH IS IN THE DESIGN PHASE THAT WE'RE IN, Y'ALL CAN WORK WITH THIS TYPE OF REQUEST. WE'VE SATISFIED THE LEGAL SIDE, YOU'VE SAID YOU CAN WORK WITH IT, THAT TELLS ME, WHICH WAS MY REQUEST AND I THINK COUNCILWOMAN VAUGHN HAD A GOOD IDEA, THAT GIVES US A LITTLE BIT OF WIGGLE ROOM TO MAKE THE PARAMETERS OF WHAT DOES THAT ACCOUNTABILITY LOOK LIKE THAT WORKS FOR EVERYONE. LIKE THE MAYOR SAID, LET'S SIT DOWN AT THE TABLE. RIGHT. THAT'S WHAT YOU SAID. WE'VE GOT THE FLEXIBILITY IN THIS PARTICULAR PHASE TO DO THAT. I APPRECIATE Y'ALL TELLING US THAT AND APPRECIATE Y'ALL TELLING US THAT IN THIS ARENA. SO WE'VE GOT THAT MOTION, AN AMENDMENT AND A SECOND. TO ME, THAT'S WHAT WE NEEDED. I LIKE THE IDEA OF THE 30% BUILT IN THERE, I LIKE THE IDEA -- I REALIZE THAT WITH THE DESIGN-BUILD A 30-DAY -- IT'S A GOOD IDEA, IT'S A GOOD PARAMETER, I KNOW THAT COULD BE PROBLEMATIC, BUT I WANT Y'ALL -- I THINK WHAT WE'RE SAYING IS WE'RE JUST AS WILLING TO BE FLEXIBLE, WE JUST WANT TO KNOW. WE JUST WANT TO KNOW. AND IF YOU GET IT ON THE AGENDA, WE CAN WORK WITH THAT. THAT'S FINE. HERE'S WHAT WE THINK WE'RE DOING IN 30 DAYS, HERE'S A MODIFICATION. COOL. JUST TELL US, THAT HE'S WHAT WE WANT TO KNOW. SO I THINK -- I DON'T THINK IT NEEDS TO BE THIS BELABORED, IT'S JUST WE WANT TO JUST KNOW WHAT'S GOING ON. BUT THANK YOU, BOTH, FOR BEING HERE. COUNCILMA N BARRERA? >> Barrera: OKAY. SO JIMINY CRICKETS. WOULD YOU PUT THE CLOCK OUT SO I CAN SEE IT. JUST A COUPLE THINGS, I'M GOING TO GO ON A QUICK RANT. JUST AN IDEA. YOU KNOW, WE HAVE STRONG PARTNERS IN THIS SENATOR CHARLES PERI, JUAN HINOJOSA, CHAIRMAN TODD HUNTER, WHAT IS IT CHAIRMAN LOZANO -- FORMER CHAIRMAN LOZANO, FRESHMAN OF THE YEAR, REPRESENTATIVE DENISE VILLALOBOS AND GOVERNOR GREG ABBOT. HOW MANY DOCUMENTS WERE PUT IN THE -- OUR HOW MANY PAGES IN THE TCEQ SUBMISSION FOR PERMITTING? >> Molly: HUNDREDS. HUNDREDS OF PAGES FOR THE PERMIT APPLICATION. >> Barrera: AND THE APPLICATION FOR THE TEXAS WATER DEVELOPMENT BOARD? >> Molly: HUNDREDS OF PAGES. >> Barrera: AND WHAT'S THE REQUIREMENT? I HEARD SOMETHING THAT THERE IS A REQUIREMENT FOR THE TEXAS WATER DEVELOPMENT BOARD FOR US TO SUBMIT FOR -- BECAUSE OF THE FACT THAT WE'VE REQUESTED -- THEY'RE FINANCING THIS PROJECT FOR US. >> Molly: RIGHT. >> Barrera: SO WHAT ARE THE CHECKS AND BALANCES FOR THAT? >> Molly: YOU'RE SAYING THE CHECKS AND BALANCES. >> Barrera: JANET MESSAGED ME SOMETHING ABOUT THAT. >> Mayor Guajardo: UH-HUH, THE OVERSIGHT. >> SORRY, THE CHECKS AND BALANCES FOR OUR CONTRACT AMENDMENTS. >> Barrera: WITH THE TEXAS WATER DEVELOPMENT BOARD. >> EXACTLY. TEXAS WATER DEVELOPMENT BOARD IS PART OF THE CONTRACT, AND SO THEY REVIEW THE AMENDMENTS AND THE SPENDING IN ORDER TO RELEASE THE FUNDS. AND I THINK IT'S A MONTHLY MEETING OR BIMONTHLY MAYBE -- >> YEAH, WE HAVE TO SUBMIT TO THEM FOR ALL REIMBURSEMENT REQUESTS SO ANY TIME WE DO ANY BILLING AMENDMENTS, WE SUBMIT TO THEM FOR REVIEW AND APPROVAL. >> Barrera: OKAY. GREENWOOD WASTEWATER TREATMENT PLANT, 110 MILLION. THAT WAS A DESIGN-BID-BUILD. SO THE CHANGE ORDER, IS THAT 100,000? >> YEAH, THE CHANGE ORDERS ON THAT WOULD STILL BE 100,000, YEAH. >> Barrera: OKAY. BUT WE SUPPORTED $110,000 TO BUILD THE GREENWOOD WATER TREATMENT PLANT. I THINK ONE OF THE THINGS THAT I THINK IS ANALOGOUS, $50 MILLION A YEAR WE SPEND ON THE FINANCING OF HEALTHCARE FOR OUR EMPLOYEES. I WONDER HOW MUCH DETAIL GOES INTO THAT THAT NOBODY'S EVER ASKED. NO ONE'S EVER ASKED. IT'S 50 MILLION -- IT'S 50 MILLION A YEAR, AND I MEAN, I ASK ON A REGULAR BASIS BECAUSE I DON'T WANT TO BORE ANYBODY ELSE AND GET ALL NERDY ABOUT IT, BUT -- AND I FOUND A LOT OF HOLES, YOU KNOW, BUT I'M NOT GETTING A THREE-SIGNATURE MEMO TO GET RID OF THE CONSULTANT OR TO SLOW IT DOWN OR TO GET AN AUDIT FOR THE PBM. I MEAN -- AND I THINK STAFF IS GENUINELY WORKING ON IT. BUT $50 MILLION A YEAR. AND HERE'S ANOTHER THING, THERE'S THREE POLLS THAT I'VE SEEN NOW THAT 65% OF THE REGION SUPPORTS DESALINATION. AND ALL OF THEM ARE LARGE SAMPLES, I THINK ONE WAS 700, ONE WAS 800, ANOTHER WITHIN WAS LIKE 1200. 65% OF THE REGION. IF THEY -- SOME OF THEM WANT TO KNOW HOW THE SAUSAGE IS MADE. YOU KNOW, I HAD A VERY SPIRITED DISCUSSION WITH AN INDIVIDUAL THAT RETIRED FROM FLINT HILLS THAT WAS TELLING ME THAT I WAS NUTS AND CRAZY, WHAT IS IT -- BUT I THINK HE TELLS EVERYBODY THAT, YOU KNOW, BUT THEN -- YOU KNOW, WE SHOULD DO BARNEY DAI DAVIS, WE SHOULD DO HARBOR ISLAND, THERE'S COSTS ASSOCIATED WITH THAT, IT'S NOT ENOUGH. IT'S THE SAME OLD ANSWER. I GO TO TAQUERIAS, I GO TO MY CHURCH, INVOLVED IN MY GRANDCHILDREN'S SCHOOL HEY, WHEN ARE WE GOING TO GET THAT DEAL DONE, WHEN ARE WE GOING TO GET THAT DEAL DONE? I THINK THAT'S ACCOUNTABILITY. I'VE SAID THAT BEFORE. AND I THINK IT'S VERY PROBLEMATIC FOR US TO NEGOTIATE FROM THE DAIS. THIS IS A VERY, VERY COMPLICATED PROJECT. WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND TEXAS WATER DEVELOPMENT BOARD, WE'VE EARNED THAT CREDIBILITY, BUT FOR WHATEVER REASON, WE DON'T SHARE IT AMONGST OWRSELVES. AND ONCE AGAIN, I'M NOT OPPOSED. I AGREE WITH THE MAYOR, I'M NOT OOP P OPPOSED FOR US BUILDING CONF CONFIDENCE SO THAT WAY WE'RE MAKING GOOD FIDUCIARY DECISIONS. I DON'T WANT TO MICROMANAGE YOU. I THINK THAT'S WRONG. I'M HERE TO VOTE YES OR NO. AND TO -- AND I THINK FOR US TO INSERT LANGUAGE AND NEGOTIATE LANGUAGE, I THINK IT'S REALLY LACK OF TRANSPARENCY TO DROP IT 3:30 ON FRIDAY AFTERNOON WITH NO SUPPORTING DOCUMENTS AND THEN ALL OF A SUDDEN WE'RE NEGOTIATING BECAUSE I DON'T KNOW WHAT THAT MEANS, JANET. I DON'T. AND I COULD TELL YOU WITH ANY OTHER ITEMS THAT WE HAVE HERE, AS I SAID BEFORE, THERE'S A TON OF SUPPORTING DOCUMENTS. SO I THINK THAT'S POOR -- POOR JOB TO GOVERN -- YOU'RE GOING TO SAY SOMETHING. >> BECAUSE I KEEP READING OVER IT, AND I STILL THINK IT'S PROBLEMATIC, BUT I REALLY -- YEAH, I WOULD PREFER A MOTION TO MODIFY THE RESOLUTION TO LIMIT THE AUTHORITY INSTEAD OF THIS RESOLUTION RESCINDING. I STILL THINK IT'S -- THERE'S AN ISSUE. >> Barrera: SEE, I MEAN, I DON'T KNOW WHAT'S WRONG WITH WAITING TWO WEEKS. >> Mayor Guajardo: NO. >> Barrera: I'M OPEN MINDED. I DON'T KNOW WHAT'S WRONG WITH WAITING TWO WEEKS. THAT'S MY THING. ONCE AGAIN WE'RE TELLING ALL OUR PARTNERS THAT WE'RE NOT GOING TO PROVIDE A PREDICTABLE REGULATORY ENVIRONMENT BECAUSE COME FRIDAY, I'M GOING TO PUT A THREE-SIGNATURE MEMO ALL OF A SUDDEN WITH NO BACKUP INFORMATION AND I'M GOING TO TELL THESE MULTIBILLION DOLLARS COMPANIES I'M NOT SURE WHAT I'M GOING TO DO NEXT WEEK, I'M NOT GOING TO GIVE YOU ANY DOCUMENTATION AND YOU'VE GOT NINE LAYMEN THAT ARE GOING TO TRY TO FIGURE THAT OUT. I JUST DON'T KNOW HOW THAT WORK. I DON'T KNOW HOW THAT WORKS. THE COMMENT I MADE ABOUT OVG, WHO K KNOWS IF THEY'LL EVER COME BACK THE WAY WE TREATED THEM, THE WAY WE TALKED TO THEM. THE THING IS, WHO WANTS TO COME DO BUSINESS WITH US WHEN ALL IT TAKES IS A THREE-SIGNATURE MEMO WITH NO DOCUMENTATION THAT IT'S GOING TO COME UP AND -- BECAUSE OUR ECONOMY NOW IS SHRINKING. WE'VE LOST BILLIONS IN INVESTMENT. BILLIONS. YOU KNOW, AND -- AND I THINK THAT'S WHERE WE'D GO. THANK YOU. >> Mayor Guajardo: SO, JANET, BY DOING WHAT THE LAST SUGGESTION WAS, WE ARE NOT CHANGING, AMENDING OR WHATEVER THE CONTRACT? >> I STILL THINK -- IT'S LIKE A CLOUDY TITLE. SO YOU'D HAVE TO -- I MEAN, IT OPENS US UP TO CLAIMS AND -- SO I REALLY -- I DON'T -- >> Mayor Guajardo: SO THE ANSWER IS NOT -- >> NO, I THINK IT'S STILL -- IT'S VAGUE. IT'S VAGUE. YEAH, I THINK IT STILL OPENS US UP TO A VOID CONTRACT. >> Mayor Guajardo: SO IF THIS ABSOLUTELY HAS TO BE DONE TODAY, I'M GOING TO RECESS THIS MEETING AND WE'RE GOING TO DO IT RIGHT. AND IF IT TAKES TWO HOURS FOR EVERYBODY TO SIT AT THE TABLE BECAUSE Y'ALL WANT TO SIT AT THIS TABLE TODAY, YOU DON'T WANT TO TAKE IT AND LOGICALLY SIT DOWN AT A CONFERENCE TABLE AND TALK ABOUT THIS, THEN THAT'S WHAT WE'RE DOING. SO WE'RE RECESSING AND WE'LL BE BACK. >> Mayor Guajardo: OKAY. WE'RE GOING TO RECONVENE OUR MEETING NOW. COUNCILMAN SCOTT, YOU HAD A QUESTION OR COMMENT? >> Scott: I DID, MAYOR, BUT I'VE SINCE FORGOTTEN, SO I'D LIKE TO START THE MEETING OVER, SO I CAN CATCH UP. CAN Y'ALL START FROM THE BEGINNING? A COUPLE THOUGHTS, ONE, I WANT TO THANK YOU JANET, BECAUSE I DO THINK YOU AFFIRMED MY PANIC BUTTON THAT AS IT WAS ORIGINALLY WRITTEN WOULD HAVE VOIDED THE CONTRACT, AND THAT WAS A BIG DEAL. SO THAT'S WHY I PANICKED. GOSH, SEE, I WAS ALL JACKED UP EARLIER. SO I GUESS -- WELL, WE'LL TALK ABOUT IT IN A MINUTE, BUT I JUST WANT TO MAKE SURE THAT WE DON'T JACK WITH THE KIEWIT CONTRACT. DOES -- DOES ANY OF THIS HAVE -- VIOLATE OUR AGREEMENT WITH KIEWIT? ARE ANY OF THE MOTIONS THAT HAVE BEEN MADE, ANY OF THE -- I GUESS THERE'S A RESOLUTION TO COME. I WANT -- I WANT LEGAL TO TELL US THE IMPACT ON ALL OF THAT WITH KIEWIT. >> NO. SO THE -- REMOVING THE CITY MANAGER'S ADMINISTRATIVE AUTHORITY TO SIGN AMENDMENTS AND BRINGING IT BACK TO CITY COUNCIL TO AUTHORIZE AMENDMENTS, THAT'S NOT GOING TO IMPACT OUR CONTRACT WITH KIEWIT. NOW, WHAT IT WILL DO IS -- IT GIVES US AN ADDITIONAL OFFRAMP POINT, SO WHEN WE BRING THAT DESIGN CONTRACT BACK FOR CITY COUNCIL AUTHORIZATION, IF CITY COUNCIL DOES NOT AUTHORIZE IT, WELL, THEN -- THAT'S IT. >> Scott: THAT'S FINE. BUT THE AGREEMENT -- AGAIN, I'M NOT A LAWYER, MY SENSE IS THAT KIEWIT SAID, I'LL DO THIS PROJECT WITH THIS SCOPE OF WORK BASED ON THE CONCEPT THAT THE CITY MANAGER IS GOING TO DESIGNATE SOMEONE, AND THAT SOMEONE WE'RE GOING TO NEGOTIATE AND DO IT OR NOT DO IT. WE ARE NOW ADDING ANOTHER LAYER TO THAT AGREEMENT, RIGHT? >> YES, AND IT'S GOING TO -- >> Scott: IS THAT IN -- I CAN'T IMAGINE THAT'S IN THE DOCUMENT THAT SAYS PLUS WHATEVER ELSE -- WHATEVER LAYER YOU WANT TO ADD TO IT. >> WELL, NO. BECAUSE WHENEVER YOU -- I MEAN, THEY BASICALLY BID ON THIS PROJECT, AND THEY HAD ASSUMPTIONS ON HOW MANY TIMES THEY WOULD HAVE TO COME TO CITY COUNCIL FOR PRESENTATIONS AND HOW MANY TIMES THEY WOULD HAVE TO SUBMIT PROPOSALS AND NEGOTIATE AND WHO THEY'RE NEGOTIATING, SO ALL OF THOSE PRICES COULD INCREASE NOW BECAUSE NOW YOU'RE ADDING ANOTHER LAYER, LIKE YOU SAID, OF -- CAN I SAY BUREAUCRACY. >> Scott: BUREAUCRACY. >> YOU'RE ADDING A LAYER. AND ALSO THE TIME DELAY. YOU'RE GOING TO DELAY APPROVAL PROCESS, AND SO THEY'RE GOING TO START PRICING THAT INTO THEIR RISK MODEL. >> Scott: AND I GUESS, MAYOR, ARE WE GOING TO BE ABLE TO TALK -- WHATEVER DOCUMENT'S COMING OUR WAY? DO I GET -- AM I USING UP MY SECOND CONVERSATION -- BECAUSE I WANT TO ASK YOU, WHATEVER THIS DOCUMENT IS, I GUESS, IS COMING THAT GIL'S WORKING ON, AND I WANT TO ASK YOU THE IMPACT ON THE KIEWIT AGREEMENT BECAUSE I DON'T WANT TO BE PARTY TO ANYTHING THAT IT VIOLATES ANY PROVISION IN THE KIEWIT AGREEMENT THAT WE'VE ALL -- THAT PREVIOUS COUNCILS HAVE VOTED, UNLESS THERE'S A LEGAL OFFRAMP THERE. >> NO, I REVIEWED IT. THERE'S NOTHING IN THE RESOLUTION -- LIKE I SAID, IT'S ONLY MODIFYING THE AUTHORIZATION OF FUTURE CONTRACTS AND FUTURE AMENDMENTS. SO. >> Scott: SO YOU'RE SAYING WHAT WILL HAPPEN IS THEY'LL -- SEE, I THOUGHT WE ALREADY HAD AN AGREEMENT TO DO ONE, 1A, 2, B C WHATEVER. AND YOU KNOW WHAT? I'M NOT GOING TO -- MY POINT IS, HERE I AM AT 6:16 ON A TUESDAY NIGHT READING A DOCUMENT THAT INSTANTLY I HAVE A HARD TIME READING BECAUSE THE PRINT'S TOO SMALL BUT THAT'S BECAUSE I'M AN OLD WHITE GUY. THAT'S JUST SO FRUSTRATING. BUT, AGAIN, SO -- DIDN'T KIEWIT ALREADY BID TO DO THAT FOR A NUMBER, OR ARE THEY REQUIRED TO COME BACK TO YOU AND SAY, HEY, WE WANT DO THE NEXT STEP AND WE'LL DO IT FOR $10 AND YOU'LL GO, NO, IT'S GOING TO BE 9. >> PHASE 1A IS THE ONLY ONE THAT WAS BID, AND THEN THEY ESTABLISHED A FEE AND A GENERAL CONDITION PERCENT. BUT EVERY SUBSEQUENT AMENDMENT OR WORK EFFORT BEYOND THAT HAD TO COME BACK FOR NEGOTIATIONS. >> Scott: GOT IT. SO THEY ALREADY KNEW. BUT -- AND IT'S NOT -- IT DOESN'T AFFECT -- GOD DANK. DANG. IT DOESN'T AFFECT THE CONTRACT IF THEY HAVE TO COME BACK TO CITY COUNCIL? IT WOULD JUST CHANGE WHAT THEY SAY THE COST IS. >> EACH AGREEMENT FORM IS BEING MODIFIED, AMENDED FOR THE SCOPE OF WORK THAT'S BEEN APPROVED AND THE COST AND THE TIME. >> Scott: I APPRECIATE YOU. I STILL THINK IT'S REALLY, REALLY BAD PUBLIC POLICY TO BE DELIBERATING SUCH A SIGNIFICANT DOCUMENT AT 6:17 ON A MOTION THAT WAS SUBMITTED TO THE COUNCIL ON FRIDAY AFTERNOON AT 3:00. IS THERE -- IF WE VOTE NO ON ANY OF THOSE DOCUMENTS -- YOU'RE GOING TO COME TO US IN THE NEXT 30-DAY DEAL, IF WE VOTE NO, WHAT HAPPENS? I GUESS IT JUST DOESN'T HAPPEN? >> YEAH, I MEAN, IF YOU SAY NO TO THE DESIGN, TO TAKE US TO A 60% GMP, THEN -- >> Scott: THAT'S OKAY, RIGHT? THAT WOULD BE A GOOD ON RAMP. I AGREE WITH THAT AS A DECENT OFFRAMP CONVERSATION. SO I GUESS I'M NOT OPPOSED TO THAT. ALL RIGHT, MAYOR, I'LL STOP TALKING. THANK YOU. >> Mayor Guajardo: OKAY. SO THE TWO MAIN THINGS THAT ARE AT RISK HERE BY DOING THIS IS TIME AND MONEY. SOMEBODY ANSWER? >> YEAH, I MEAN, THAT'S ALWAYS A CONCERN, IF WE DELAY PROGRESS, IT USUALLY HAS COST IMPLICATIONS. >> Mayor Guajardo: RIGHT. AND SO EACH THING, EACH ITEM OR WHATEVER THAT COMES HERE CAN BE VOTED DOWN? >> YEAH. IN THEORY, YES. IT COULD ALL BE VOTED DOWN, YES MA'AM. >> Mayor Guajardo: AND WE DIDN'T TAKE THE PROPER TIME IN MY OPINION, THAT LITTLE RECESS WAS NOT, THE PROPER TIME TO DISCUSS THIS. DID ANYONE CALL YOU TWO TO SAY, HEY, WE'VE GOT THIS ISSUE, WE'VE GOT THIS CONCERN. THE THREE PEOPLE THAT SIGNED THE MEMO, HOW ABOUT THAT? CAROLYN, ERIC AND GIL, DID ANYBODY CALL YOU TO SAY, WE WANT TO TALK TO YOU ABOUT THIS BECAUSE THIS IS OF GREAT CONCERN TO US AND WE'D LIKE TO TALK TO YOU ABOUT THIS? >> I HAVE NOT. I DON'T THINK DREW HAS EITHER, NO. >> Mayor Guajardo: SO NO? >> NO, MA'AM. >> Mayor Guajardo: ALL RIGHT. COUNCILMAN HERNANDEZ? >> Hernandez: THANK YOU, MAYOR. SO I'D LIKE TO WITHDRAW MY -- >> Mayor Guajardo: WELL, COUNCILMAN, BEFORE WE DO THAT LAST -- LET ME GET THESE TWO. I THOUGHT YOU HAD A COMMENT. >> Hernandez: OKAY. COUNCILMA N BARRERA? >> Barrera: I ALREADY TWICE, BUT WE'VE GOT NEW INFORMATION. OKAY. EITHER ONE OF YOU, OR BOTH OF YOU, SECTION 1, THE CITY MANAGER'S INSTRUCTED TO FOLLOW NORMAL PROCUREMENT PROCEDURES FOR ALL FUTURE PURCHASES, CONTRACTS AMENDMENTS FOR THE INNER HARBOR SEAWATER DESALINATION TREATMENT PROJECT. WHAT DOES THAT MEAN? >> I HAVEN'T SEEN IT YET. SORRY. >> Barrera: THAT'S THE LANGUAGE THAT WE'RE BEING GIVEN RIGHT NOW. IT'S -- IT SAYS BE IT RESOLVED AT THE BOTTOM, SECTION 1. WHAT DOES THAT MEAN? >> SO I ASSUME THAT'S -- >> Barrera: NO, NO, NO, DON'T ASSUME. IF YOU'RE ASSUMING, YOU DON'T KNOW WHAT IT MEANS. >> OKAY. ALL I CAN DO IS ASSUME. I HAVEN'T SEEN ANYTHING BEYOND THIS TO DEFINE WHAT THAT MEANS. >> Barrera: IF YOU SEE THAT -- I'M JUST ASKING YOU, IT'S A YES OR NO QUESTION. DO YOU KNOW WHAT THAT MEANS? >> NO. >> Barrera: DREW? >> Molly: NO. >> Barrera: DOES ANYBODY ELSE KNOW WHAT THAT MEANS? OKAY. SO WE'RE GOING TO VOTE ON SOMETHING THAT PROBABLY THE TWO KEY INDIVIDUALS ON THIS PROJECT HAVE NO UNDERSTANDING OF WHAT THAT MEANS. >> SO THE WAY I READ THIS, THE WAY IT'S INTERPRETED -- >> Barrera: NO, NO, I ASKED YOU A QUESTION. DO YOU KNOW WHAT IT MEANS? >> YES. >> Barrera: WHAT DOES IT MEAN? >> IT MEANS THAT FOR FUTURE AMENDMENTS TO THE KIEWIT CONTRACT OR FUTURE CONTRACTS THAT WE ENTER INTO OUTSIDE OF KIEWIT, OR FUTURE PURCHASES THAT -- WHERE WE PURCHASE SOMETHING SEPARATE, WE HAVE TO FOLLOW THE CITY'S PROCUREMENT POLICIES. >> Barrera: AND WHAT IS THAT? >> FOR LIKE A PURCHASE, IF IT'S OVER 50,000 OR A CONTRACT, WE HAVE TO BID IT OUT. FOR AMENDMENTS THAT ARE OVER 50,000, WE HAVE TO BRING IT BACK TO CITY COUNCIL. >> Barrera: WOULD YOU -- WOULD YOU RECOMMEND THAT WE DO THAT EITHER TWO OF YOU GENTLEMEN? >> SO IT -- IN NORMAL PRACTICE, I WOULD SAY, NO, THAT'S DEFINITELY NOT BEST PRACTICE. IT'S NOT SOMETHING YOU WOULD CONSIDER TO BE INDUSTRY BEST PRACTICE. >> Barrera: WHY IS THAT? >> WELL, DEPENDING ON THE VOLUME OF CHANGES THAT YOU COULD PARTICULARLY -- YOU COULD HAVE ON A PROJECT, IT WOULD HAVE A SIGNIFICANT TIME IMPACT. YOU COULD ALSO -- I MEAN, YOU'RE GOING TO DRIVE COST UP POTENTIALLY. IT TAKES A LOT OF ADMINISTRATIVE WORK, DEPENDING ON THE SCALE, FOR A PROJECT THIS BIG. IF WE'RE SAYING 50,000, I MEAN, I COULD BE IN HERE, LIKE I SAID, EVERY SINGLE WEEK WITH MULTIPLE ITEMS, YOU KNOW, ASKING FOR PERMISSION. >> Barrera: SO YOU'RE CONTRADICTING THE RECOMMENDATION OF OUR ATTORNEY. >> I AM NOT MAKING A RECOMMENDATION. I WAS JUST GIVING AN INTERPRETATION. >> Barrera: IS THIS YOUR RECOMMENDATION TO FOLLOW THROUGH WITH THIS KIND OF LANGUAGE. >> NO, I RECOMMEND KEEPING THE ORIGINAL RESOLUTION. >> Barrera: WHICH WAS. >> WHERE WE AUTHORIZED THE DESIGN PACKAGE ON JUNE 25TH. >> Barrera: THE ONE WE DID LAST YEAR? YOUR RECOMMENDATION IS WE FOLLOW THROUGH WITH THE PROCEDURE WE RECOMMENDED LAST YEAR. >> CORRECT. >> Barrera: SO YOU RECOMMEND AGAINST THIS RESOLUTION? >> YES. >> Barrera: ALL RIGHT. YOU RECOMMEND AGAINST THIS RESOLUTION. >> THE PREFERENCE WOULD BE TO STICK WITH THE ORIGINAL RESOLUTION YES. >> Barrera: ALL RIGHT. ALL RIGHT. SO -- SO -- AND, DREW, YOU'VE HAD EXPERIENCE THAT THE NORMAL PRACTICE A -- WHAT WAS IT CALLED? >> PROGRESSIVE. >> Barrera: PROGRESSIVE DESIGN-BUILD. TELL ME THE QUANTITY OF THE PROJECT. >> Molly: $1.7 BILLION, 320 MILLION-GALLON A DAY. >> Barrera: AND THAT IS VERY SIMILAR TO THE PROCESS THAT WE'RE FOLLOWING RIGHT NOW. >> Molly: YES. >> Barrera: I JUST WANT TO MAKE IT CLEAR, STAFF IS RECOMMENDING AGAINST, AND I HOPE -- I HOPE RACHEL CABALLERO -- I'M SORRY, I SHOULDN'T SAY HER NAME. I HOPE THE INDIVIDUAL WHO HAS RECORDED ME ON A COUPLE OF RECORDINGS NOW THAT BASICALLY STATE -- AND I'M GOING TO STATE, I'M VOTING NO SPECIFICALLY BECAUSE THE INDIVIDUALS THAT WE HAVE ENTRUSTED TO BE ABLE TO PURSUE THIS PROCESS ARE RECOMMENDING AGAINST THIS. NOW, WE'RE OPEN MINDED TO PROVIDE MORE TRANSPARENCY AND MORE CLARITY, BUT THE RECOMMENDATION IS AGAINST THIS PROCESS. THANK YOU, MAYOR. >> Mayor Guajardo: THANK YOU. COUNCILMAN CANTU? >> Cantu: DID YOU NOT HELP GIL WRITE THIS? >> NO, I ASKED HIM TO -- >> Mayor Guajardo: CAN YOU PUT YOUR MICROPHONE? >> SORRY, I REQUESTED THAT HE MODIFY IT TO REMOVE THE RESIN SHUN LANGUAGE. . >> Cantu: OKAY. >> SO THIS IS HIS LANGUAGE. SECTION 2 -- HE REMOVED SECTION 1 BECAUSE IT WAS RESCINDING. AND THEN SECTION 2, HE REMOVED THE WORD CURRENT BECAUSE IT DEALT WITH THE ALREADY AUTHORIZED CONTRACT. THE REST OF THIS LANGUAGE IS GIL'S. >> Cantu: DREW, THIS IS A PRETTY BIG DEAL, RIGHT? >> Molly: I MEAN, I -- MY POSITION ON THIS -- >> Cantu: NO, BUT IT'S A PRETTY BIG DEAL. IT'S A PRETTY BIG AGENDA ITEM. >> Molly: I'M STRUGGLING TO UNDERSTAND IT. FRANKLY, I REALLY AM. >> Cantu: BUT DID YOU CALL ME AND ASK ME QUESTIONS WHY I PUT THIS ON THE AGENDA AND SIGNED IT, THE THREE-SIGNATURE MEMO. >> Molly: DID I CALL YOU TO ASK YOU. >> Cantu: OVER THE WEEKEND ASKING ME QUESTIONS ABOUT IT. >> Molly: COUNCILMAN, YOU AND I TALKED ABOUT THIS. >> Cantu: AND THE MAYOR, DID YOU CALL ME ASKING ABOUT THIS, BECAUSE YOU WERE TALKING ABOUT, YOU KNOW, BRINGING A THREE-SIGNATURE MEMO ON A FRIDAY, YOU KNOW, NOT DISCUSSING WITH ANYBODY. I MEAN, I DIDN'T GET NO PHONE CALLS FROM ANY OTHER COUNCILMEMBERS. >> Mayor Guajardo: BUT YOU'RE THE ONE PUTTING IT IN. >> Cantu: I KNOW, BUT I WOULD THINK YOU WOULD CALL ME -- >> Mayor Guajardo: ACTUALLY, I SPOKE WITH CAROLYN, SO... >> Cantu: I THOUGHT WE ALL GET ALONG, YOU KNOW. I THOUGHT WE WANT TO TALK BUSINESS AND FIGURE OUT, YOU KNOW, WHAT'S -- WHAT'S YOUR THINKING, YOU KNOW? I THINK EVERYBODY JUST ATTACKED, YOU KNOW, CAROLYN, TO SEE WHAT'S GOING ON AND NO ONE WANTED TO PICK UP THE PHONE AND CALL ME OR GIL TO SEE WHAT WAS GOING ON AND WHY WE DID THIS. BUT -- AND, YOU KNOW, IT GOES BACK TO TRANSPARENCY. I JUST WANT TO KNOW WHAT'S GOING ON. IT'S NOT LIKE WE'RE GOING TO THROW THE PROJECT DOWN. I DON'T THINK IT'S GOING TO DELAY IT. LIKE YOU GUYS ARE SAYING, SO LONG. I MEAN, AND IT DOESN'T WORK OUT, WE CAN BRING IT BACK. WE CAN BRING IT BACK? YOU KNOW, AND BRING IT BACK TO SAY, HEY, THIS IS NOT WORKING OUT BECAUSE ABC. AND WE CAN DISCUSS IT THEN. YOU KNOW, WE JUST WANT TO KNOW WHAT IS GOING ON AND WHAT WE'RE SPENDING MONEY ON. THAT'S IT. AND I REALLY THINK, YOU KNOW, THE WHOLE DEAL WITH THE CITY ATTORNEY TALKING ABOUT THE CONTRACTS AND ALL THE OTHER STUFF LIKE -- I MEAN, WE'RE NOT GOING TO CANCEL THE CONTRACT. I MEAN, I JUST DON'T UNDERSTAND IT. I REALLY DON'T. BUT I JUST FEEL LIKE THE COMMUNICATION IS OFFLINE RIGHT NOW. WE HAVE A SPLIT COUNCIL. WE SHOULD HAVE GOT A RETREAT THIS YEAR AND IT'S POINTLESS TO HAVE A RETREAT NOW. I MEAN, SPENDING HUNDREDS OF THOUSANDS OF DOLLARS FOR THAT FOR WHAT? SO, ANYWAYS, THAT'S IT. THANK YOU. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: AS I SAID EARLIER, I UNDERSTAND WITH SOME OF THE COUNCIL MEMBERS HAVING A CONCERN IN TERMS OF OVERSIGHT. I MEAN, THAT'S PART OF OUR JOB. I DON'T THINK THAT THIS PARTICULAR WAY THAT WE'RE GOING IT ABOUT IN TERMS OF THE LANGUAGE, I AGREE WITH. ONE OF THE THINGS I HAD SAID BEFORE, AND I'LL REITERATE THAT AGAIN, IS IF WE HAD SOME TYPE OF 30-DAY OVERSIGHT OR SOMETHING LIKE THAT, I THINK THAT WOULD BE APPROPRIATE. BUT WHAT WE'RE REALLY DOING, IN THIS PARTICULAR CASE, IS WE'RE TAKING A SWORD TO A KNIFE FIGHT AND WE'RE PUTTING ALL THESE THINGS IN PLACE THAT COULD IMPEDE OUR COST IN THAT AND SLOW US DOWN. BECAUSE WHAT DOESN'T MAKE SENSE TO ME IS THIS ISN'T A NORMAL PROJECT. THIS IS A VERY LARGE SCOPE PROJECT SO LIMITING IT TO $100,000 -- AND WE'VE BEAT THIS TO DEATH. FOR TIME'S SAKE I'M NOT VOTING FOR THIS BECAUSE I FEEL LIKE IT'S NOT THE RIGHT -- THAT THIS SOLUTION ISN'T THE RIGHT SOLUTION. I'M FOR OVERSIGHT, DON'T GET ME WRONG ON THAT, COUNCIL, BUT THIS ISN'T THE WAY TO GO ABOUT IT. SO FOR THAT REASON, I'M VOTING NO. >> Mayor Guajardo: OKAY. AND FOR THE RECORD, I'M ECHOING THAT BECAUSE, AGAIN, WE ALL WANT MORE OVERSIGHT. IT'S JUST THE WAY THIS ALL LAID OUT. AND WHAT WE ARE BEING -- FORGET HOW IT WAS LAID OUT. WE COULD GET SOMEWHERE. BUT WE ARE BEING STRONGLY -- WE ARE BEING RECOMMENDED AGAINST THIS AND THERE ARE REASONS FOR THAT. AND THESE ARE PEOPLE THAT ARE PROFESSIONALS AND BY THAT RIGHT. I WON'T BE SUPPORTING IT EITHER. BUT WE DO -- COUNCILMAN HERNANDEZ, YOU GO AHEAD. >> Hernandez: YES. SO I'LL BE RESCINDING MY MOTION AND AMENDMENT AND I'LL BE SUBSTITUTING WITH THE FOLLOWING: RESOLUTION TO MODIFY CORPUS CHRISTI COUNCIL RESOLUTION 03396 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE CONTRACTS AND AMENDMENTS FOR DESIGN SERVICES OR CONSTRUCTION MATERIALS FOR THE INNER HARBOR DESALINATION TREATMENT PLANT PROJECT AND ACQUISITION OF PROPERTY. THE WHEREAS HAVE STAYED THE SAME. BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, SECTION 1. THE CITY MANAGER IS INSTRUCTED TO FOLLOW NORMAL PROCUREMENT PROCEDURES FOR ALL FUTURE PURCHASES CONTRACTS AND AMENDMENTS FOR THE INNER HARBOR SEAWATER DESALINATION TREATMENT PLANT PROJECT. SECTION 2, THE CITY MANAGER SHALL PROVIDE ACCURATE ACCOUNTING TO COUNCIL FOR ALL FUNDING SPENT AND ENCUMBERED FOR THE INNER HARBOR SEA WATER DESALINATION TREATMENT PLANT PROJECT AND ACQUIRED PROPERTY. SECTION 3, THIS RESOLUTION IS EFFECTIVE JULY 1, 2025. THAT LAST SECTION WAS A COMPROMISE THAT THE STAFF ASKED FOR BECAUSE THEY WERE IN THE PROCESS OF DOING THE PILOT PLANT, SO WE MADE THE COMPROMISE AND SO THAT'S THE RESOLUTION. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. >> Barrera: PUBLIC COMMENT. >> Mayor Guajardo: WOULD ANYONE IN THE AUDIENCE LIKE TO MAKE PUBLIC COMMENT ON ITEM NO. 19? >> JUST REAL QUICK BECAUSE I KNOW YOU ALL ARE TIRED. ALL I ASK IS DO NOT DELAY. DO NOT STOP DESAL. CONTINUE WITH IT AND THEN DO AS YOU WILL. BUT DON'T STOP IT. WE CANNOT AFFORD TO LOSE THE OPPORTUNITY FOR WATER. >> Mayor Guajardo: THANK YOU. GO AHEAD. >> GOOD EVENING, MAYOR, COUNCIL. BOB PAULSON. I LIVE IN CORPUS CHRISTI, TEXAS. I'M THE EXECUTIVE DIRECTOR OF THE COASTAL BEND INDUSTRY ASSOCIATION. AND TO BE QUICK, BECAUSE I HAVE BEEN PAYING ATTENTION TO THE DISCUSSION HERE THIS AFTERNOON. I WANT TO JUST MAKE A COUPLE OF POINTS. FIRST OF ALL, HOW YOU TAKE ACTION IS AS IMPORTANT AS WHY YOU WANT TO TAKE THE ACTION. THE SECOND ONE IS THAT I REALLY WOULD URGE AND IMPLORE YOU TO LISTEN TO THE RECOMMENDATIONS OF THE PROFESSIONALS ON YOUR STAFF, YOUR LAWYER, YOUR ACQUISITION PROJECT MANAGER, AND YOUR CHIEF OPERATING OFFICER OF WATER UTILITIES WHEN THEY RECOMMEND AGAINST PURSUING THIS PATH, PARTICULARLY AT THIS TIME. IN MY OPINION, THEY'RE SPOT ON. EVERYBODY WANTS IMPROVED OVERSIGHT BUT IF THAT'S WHAT YOU SEEK, THERE ARE OTHER WAYS TO MEET THAT NEED WITHOUT ADDING THE ADDITIONAL RISK IN TERMS OF TIME AND COST TO THIS PROCESS. YOU KNOW, THE MAYOR SAID IT EARLIER. THIS IS A HISTORIC PROJECT. SHE ALSO SAID -- AND I THINK EVERETT SAID THERE ARE PEOPLE ALL OVER THE STATE AND PROBABLY ALL OVER THE NATION AND MAYBE ALL AROUND THE WORLD THAT ARE WATCHING US. AND I JUST THINK THAT RATHER THAN DECIDE NOW, BASED ON HOW THIS IS ALL SORT OF TRANSPIRED TODAY, IT WOULD BE MUCH BETTER TO ACTUALLY TAKE THE OPPOSITE APPROACH AND LET SOME TIME, LET THE STAFF REVIEW THE PROPOSAL AND UNDERSTAND MORE FULLY ITS RAMIFICATIONS AND THEN DECIDE HOW YOU'RE GOING TO ACT AS OPPOSED TO ACTING KIND OF IN REALTIME THE WAY IT'S KIND OF TAKING PLACE TODAY. ANYWAY, THAT'S MY COMMENT. THANK YOU VERY MUCH. >> Mayor Guajardo: THANK YOU, MR. PAULSON. WOULD ANYONE ELSE LIKE TO MAKE COMMENT ON ITEM NO. 19? OKAY. THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. >> [OFF MIC] >> Mayor Guajardo: I'M SORRY, JASON. >> [OFF MIC] >> City Secretary: YOU SPOKE ON DESAL INITIALLY? YES SIR. >> THAT WAS JASON. THIS IS JIMMY. [LAUGHTER] >> Mayor Guajardo: OKAY. SO WE HAVE A MOTION AND A SECOND ON THE TABLE. PLEASE SUBMIT YOUR VOTE. >> Barrera: YOU'VE GOT TO ABSTAIN GIL. LIKE EVERY OTHER ONE. >> Mayor Guajardo: OKAY. THE MOTION CARRIES 5-4. WE ARE GOING TO TAKE ITEM 21 AND 22 AT OUR NEXT COUNCIL MEETING. SO THERE BEING NO FURTHER BUSINESS, THIS MEETING IS NOW ADJOURNED. [MEETING ADJOURNED] least allows us to have some water in the system. It may not be at the pressure that we all want, but we know that's important. That's great. Uh, now, Dave, I know that the facility has received multiple