[ ♪ MUSIC PLAYING ♪ ] >> Mayor Guajardo: GOOD MORNING EVERYONE. I'D LIKE TO CALL THIS MEETING TO ORDER. WELCOME TO CITY HALL AND TO COUNCIL CHAMBERS. THIS MORNING OUR INVOCATION WILL BE GIVEN BY PASTOR ROB BAILEY WITH SOUTHSIDE COMMUNITY CHURCH. >> LET'S PRAY. O LORD, OUR LORD, HOW MAJESTIC IS YOUR NAME IN ALL THE EARTH. WE COME HUMBLY TO YOU THIS MORNING. WE THANK YOU FOR THE MANY BLESSINGS YOU'VE GIVEN US. WE THANK YOU FOR THE RAIN THIS WEEKEND. WE ASK THAT YOU WOULD BRING MORE, MUCH MORE. FILL OUR RESERVOIRS TO A HEALTHY LEVEL. WE THANK YOU FOR OUR LAW ENFORCEMENT OFFICERS, FOR OUR FIREFIGHTERS, AND OTHER FIRST RESPONDERS. KEEP THEM SAFE TODAY. WE THANK YOU FOR OUR CITY STAFF THAT WORK SO HARD BEHIND THE SCENES TO KEEP OUR CITY RUNNING. TODAY WE WANT TO THANK YOU FOR OUR MAYOR, FOR OUR CITY COUNCIL MEMBERS. WE ASK THAT YOU WOULD GIVE THEM WISDOM AND GRACE AS THEY LISTEN, AS THEY DELIBERATE, AND AS THEY DECIDE MANY IMPORTANT ISSUES. WE PRAY ALL THIS THROUGH CHRIST'S NAME, AMEN. >> Mayor Guajardo: THANK YOU, PASTOR. TODAY OUR PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES AND TO THE TEXAS STATE FLAG WILL BE GIVEN BY OR LED BY ZOE BUENTELLO. SHE IS A SENIOR AT MARY CARROLL HIGH SCHOOL. AND YOU'RE ALSO A FOUR-YEAR CHEERLEADER AND A SENIOR CO-CAPTAIN TRIUMPH OVER KID CANCER PRESIDENT. AND YOU'RE A CITY COUNCIL PUBLIC RELATIONS OFFICER. >> PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE. [PLEDGE OF ALLEGIANCE] PLEASE JOIN ME IN HONORING THE TEXAS FLAG. [HONORING THE TEXAS FLAG] >> Mayor Guajardo: ZOE, THANK YOU AND GOOD LUCK IN YOUR STUDIES. >> Barrera: GO TIGERS! >> Mayor Guajardo: GO TIGERS, THAT'S RIGHT. 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: GREAT. THANK YOU, MS. HUERTA. THAT TAKES US TO SECTION E AND THAT IS OUR CITY MANAGER'S COMMENTS AND UPDATE ON CITY OPERATIONS. >> Zanoni: THANK YOU, MAYOR. GOOD MORNING, MAYOR AND MEMBERS OF THE COUNCIL AND OUR COMMUNITY. WE HAVE ONE ITEM ON THE CITY MANAGER'S REPORT TODAY AND IT'S TO DO ON A REPORT-OUT ON A CONFERENCE HERE LAST WEEK. IT WAS THE STATEWIDE PARKS AND RECREATION ASSOCIATION'S ANNUAL CONFERENCE HELD RIGHT HERE IN CORPUS CHRISTI. THE EVENT WAS HOSTED AT OUR HILLIARD CENTER ON FEBRUARY 10 THROUGH 13. LAST YEAR, THE PARKS ASSOCIATION FROM THE STATE REACHED OUT TO US AND ASKED CAN WE HAVE OUR CONFERENCE RIGHT HERE IN CORPUS CHRISTI. AND WE ABSOLUTELY SAID YES. IT'S IMPORTANT TO NOTE THAT THE LAST TIME THE CITY HOSTED THIS CONFERENCE WAS OVER TEN YEARS AGO. SO IN 2014. SO WE WERE PROUD TO HAVE IT HERE. YOU'RE GOING TO SEE SOME OF THE REPORTING OUT IN -- AND IT LOOKS LIKE A BIG TROPHY THERE FROM THE CONFERENCE. THE CONFERENCE FOCUSES ON CURRENT TRENDS IN OUR PARKS SYSTEMS STATEWIDE, BEST PRACTICES, LEGISLATIVE ISSUES THAT ARE IMPACTING MUNICIPAL PARKS AND RECREATION DEPARTMENTS. NOT ONLY OURS BUT ACROSS THE WHOLE STATE. THERE ARE A LOT OF PEOPLE HERE. THERE WAS 1,200 DELEGATES HERE IN OUR CITY. 136 VENDORS AND 170 CITIES PARTICIPATED ACROSS THE STATE, PARTICIPATED RIGHT HERE. SO ROBERT DODD, OUR PARKS DIRECTOR, IS GOING TO HIGHLIGHT MORE ON THE CONFERENCE. I THINK WE HAVE A VIDEO THAT WILL HIGHLIGHT SOME OF THE ACTIVITIES THAT TOOK PLACE. I'LL TURN IT OVER TO YOU, ROBERT. >> GOOD MORNING, MAYOR, COUNCIL. I AM ROBERT DODD, THE DIRECTOR OF PARKS AND RECREATION. WE ARE PROUD TO HAVE HOSTED THE 2026 TEXAS RECREATION PARK SOCIETY, ALSO KNOWN AS TRAP, INSTITUTE AND EXPO LAST WEEK. THIS EVENT PROVIDED AN EXCELLENT OPPORTUNITY TO SHOWCASE OUR AMENITIES IN CORPUS CHRISTI TO OTHER PROFESSIONALS FROM AROUND THE STATE. THE CONFERENCE FEATURED SPEAKERS FROM THROUGHOUT THE UNITED STATES AND CONSIDERABLE CHANGES, AS PETER JUST MENTIONED, THAT HAVE HAPPENED IN CORPUS OVER THE TEN TO 12 YEARS THAT WE HAVE HOSTED THIS EVENT. PEOPLE WERE VERY EXCITED ABOUT CORPUS CHRISTI. THE CITY PARKS AND RECREATION DEPARTMENT COLLABORATED IN PLANNING, ORGANIZING CONFERENCE EVENTS IN CONJUNCTION WITH THE TRAPS STAFF AND WITH THE SUPPORT OF THE VISIT CORPUS CHRISTI STAFF. THE HOST COMMITTEE MEMBERS INCLUDED -- I WOULD LIKE FOR THEM TO STAND UP. THEY DID A LOT OF WORK. WE STARTED THIS LAST YEAR. IT'S BEEN A YEAR PROCESS SO THESE PEOPLE REALLY DESERVE CREDIT. LISA OLIVER. THERE SHE IS. ROBERTA RODRIGUEZ. KIMBERLY HERNANDEZ. DARREN GIRLEY AND MALLORY JOHNSON FROM VISIT CORPUS CHRISTI. [APPLAUSE] AGAIN, OVER A YEAR, PROBABLY 30, 45 MEETINGS THAT THEY HAVE. SO IT WAS A HUGE THING FOR US IN CORPUS CHRISTI. THE EVENT WAS HELD FEBRUARY 10 THROUGH 13 AT THE HILLIARD CENTER AND THE OMNI HOTEL. HIGHLIGHTS INCLUDED SPECIAL EVENTS AT WHATABURGER FIELD, LOZANO GOLF COURSE, AND THE ART MUSEUM OF SOUTH TEXAS AS WELL AS OUR OWN OSO BAY WETLANDS AND PRESERVES. THE STATE MAINTENANCE RODEO WAS HELD AT WHATABURGER FIELD WITH THE ATTENDANCE OF OVER 275 PARTICIPANTS, 21 OF OUR STAFF MEMBERS FROM THE CORPUS CHRISTI PARKS AND RECREATION DEPARTMENT WERE ELIGIBLE TO COMPETE FOR THIS STATE EVENT. I WOULD LIKE TO ACKNOWLEDGE RAUL TREJO, A PARK TECHNICIAN. HE FINISHED SECOND IN THE STATE IN THE BACKHOE EVENT. AND JEREMY LUNA, WHO IS A PARK TECHNICIAN AS WELL, HE WAS OUR STATE CHAMPION IN THE BACKPACK BLOWER EVENT. VERY IMPRESSIVE. THEY ARE STATE CHAMPIONS EVERY YEAR, THAT GROUP THAT WORKS DAILY AT OUR PARKS. BUT ALSO WE WERE AWARDED THE OVERALL STATE MAINTENANCE RODEO CHAMPIONS, WHICH IS A BIG ACCOMPLISHMENT FOR OUR TEAM. I WOULD LIKE TO ALSO RECOGNIZE THE FIRE DEPARTMENT COLOR GUARD. SONNY SALINAS, ONE OF OUR DEPARTMENT EMPLOYEES, HE SANG THE NATIONAL ANTHEM AT THE OPENING CEREMONIES. >> Mayor Guajardo: WOW! >> AND HE IS UNBELIEVABLE. UNBELIEVABLE. HE DID A GREAT JOB. I'M VERY PROUD OF SONNY. THANK YOU, SONNY. [APPLAUSE] MY WIFE RECOMMENDED HIM. SHE SAID YOU NEED TO GET SONNY TO SING. I KNOW HE WORKS FOR YOU AND HE SINGS AT SOME NIGHTCLUBS SOMETIMES. I DIDN'T KNOW SHE HAD GONE TONIGHT CLUBS. [LAUGHTER] SONNY, YOU OWE MY WIFE 50 BUCKS OR SOMETHING. HE DID AN AMAZING JOB. I WAS VERY IMPRESSED. ADDITIONALLY, WE WOULD LIKE TO THANK THE MAYOR FOR BEING THERE AT THE CONFERENCE WELCOME. THAT WAS A GREAT ADDITION. THERE WAS AN OPPORTUNITY FOR OUR TEAM TO ENGAGE IN EDUCATIONAL SESSIONS AND SERVE AS PRESENTERS AS WELL. THE CONFERENCE PRESENTERS INCLUDED TONYA WHATLEY BUT SHE HELD A SESSION ENTITLED HEART YOUR PARK. SEATING THE FUTURE. A VOLUNTEER POWER APPROACH TO NATIVE PLANTS . AND HOSTED A TOUR AT THE OSO BAY WETLANDS PRESERVE. ALSO, LISA OLIVER, ROBERTA RODRIGUEZ, AND MYSELF PRESENTED ON THE TOPIC: WHAT IS EMPLOYEE ENGAGEMENT AND WHY IT MATTERS. IT WAS AN HONOR TO BE A PRESENTER AT TRAPS THIS YEAR. WE RECEIVED POSITIVE FEEDBACK FROM THE CONFERENCE ATTENDEES AND TRAP BOARD REGARDING OUR ROLE AND WE LOOK FORWARD TO WELCOMING THEM BACK AGAIN IN THE FUTURE. HOSTING THIS CONFERENCE GENERATED A POSITIVE, DIRECT ECONOMIC IMPACT THROUGH COLLABORATION WITH OVER 25 LOCAL VENDORS AS WELL AS DOWNTOWN BUSINESSES AND AREA RESTAURANTS. A COMPREHENSIVE FINAL ECONOMIC IMPACT REPORT WILL BE AVAILABLE IN A COUPLE OF WEEKS. WE WOULD LIKE TO E-MAIL TO Y'ALL. AND OF COURSE, I WOULD TO THANK LAST BUT NOT LEAST IS OUR MULTIMEDIA TEAM. THESE GUYS DID AN UNBELIEVABLE JOB AND I WANT TO THANK THEM. STEVEN, YOU DID A GREAT JOB. WE HAVE A VIDEO. WE FINISHED THIS ON THURSDAY. IT WAS A QUICK TURNAROUND FOR THEM AND I APPRECIATE OUR TEAMMATES WITH THE MULTIMEDIA TEAM. IF WE CAN RUN THAT VIDEO. [ VIDEO ] >> THE CITY OF CORPUS CHRISTI PARKS AND RECREATION DEPARTMENT PROUDLY COLLABORATED WITH THE TEXAS RECREATION AND PARK SOCIETY TO HOST THE TRAPS ANNUAL INSTITUTE FROM FEBRUARY 10 THROUGH 13. THIS STATEWIDE PROFESSIONAL DEVELOPMENT EVENT BROUGHT TOGETHER THE BRIGHTEST MINDS IN THE INDUSTRY TO EXPLORE CURRENT TRENDS AND LEGISLATIVE ISSUES. THE INSTITUTE WELCOMED OVER 1200 DELEGATES AND 136 VENDORS REPRESENTING MORE THAN 170 CITIES FROM EVERY CORNER OF TEXAS. BEYOND THE CLASSROOM, THE CITY SHOWCASED ITS PREMIER FACILITIES WITH SPECIAL EVENTS HELD AT THE LOZANO GOLF CENTER AND THE OSO BAY WETLANDS PRESERVE. THE EXPERIENCE EXTENDED TO THE CITY'S CULTURAL HEART WITH HIGHLIGHTS AT THE CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY, THE ART MUSEUM OF SOUTH TEXAS, AND WHATABURGER FIELD. AS THE LOCAL HOST COMMITTEE, THE CITY'S PARKS AND RECREATION DEPARTMENT WORKED ALONGSIDE TRAPS STAFF AND VISIT CORPUS CHRISTI TO ENSURE A SEAMLESS AND IMPACTFUL CONFERENCE. ATTENDEES GAINED VITAL UPDATES ON POLICY CHANGES, DISCOVERED INNOVATIVE APPROACHES TO COMMUNITY ENGAGEMENT, AND NETWORKED WITH PEERS TO SOLVE THE CHALLENGES FACING MODERN PARKS. THROUGH EDUCATION AND COLLABORATION, THE TRAPS ANNUAL INSTITUTE CONTINUES TO STRENGTHEN THE PARKS AND RECREATION LANDSCAPE ACROSS THE LONE STAR STATE. >> AGAIN, I JUST WANT TO THANK OUR TEAM, THE PARKS AND RECREATION TEAM, OUR STAFF. THEY ARE UNBELIEVABLE. THEY MADE ME LOOK GOOD SO THAT'S HARD TO DO SOMETIMES. AND THEY ARE VERY, VERY EXCITED AND THEY'RE ALREADY ASKING FOR THE NEXT TIME WE GET TO HOST THIS. AGAIN, THANK YOU FOR YOUR SUPPORT. AGAIN, MY STAFF, Y'ALL ARE ABSOLUTELY WONDERFUL. MALLORY, YOU DID A GREAT JOB. THANK YOU. THAT'S ALL I GOT. >> Zanoni: THANK YOU, ROBERT. [APPLAUSE] ROBERT, WHAT'S THE BIG TROPHY THERE? >> OH, SORRY. THIS IS OUR REGIONAL TROPHY THAT WE WON. WE'LL GET A PLAQUE AND ANOTHER TROPHY FOR THE STATE TOURNAMENT AS WELL. BUT THIS IS THE REGIONAL ONE. THERE'S McALLEN AND A COUPLE OF OTHER PLACES BUT FOR 2026 WE GET TO PUT THE CITY OF CORPUS CHRISTI ON THERE. PRETTY EXCITED ABOUT THAT. ALSO, TOO, THIS IS A PLAQUE WE RECEIVED FROM TRAPS. AGAIN, THEY WERE VERY, VERY EXCITED AND WE TALKED ABOUT FUTURE TIMES TO HAVE THIS. >> Zanoni: GREAT. THANK YOU. MAYOR, THAT CONCLUDES THE CITY MANAGER PRESENTATION. >> Mayor Guajardo: THANK YOU, ROBERT. COUNCILWOMAN VAUGHN. >> Vaughn: WELL, Y'ALL MAKE US PROUD. Y'ALL DID A GREAT JOB. I WAS THINKING [LAPSE IN AUDIO] WHEN I SAW IT. IT'S A GREAT TROPHY. >> IT'S A COOL-LOOKING TROPHY. I DON'T KNOW WHY THE BULL IS ON THERE. >> Vaughn: GOOD IDEA. WE'RE TEXAS SO, HEY. MR. ZANONI, THANK YOU FOR DOING ALL THESE VIDEOS. IT REALLY PUTS A LIVE SPIN ON IT. THANK Y'ALL. >> Zanoni: SOME BEAUTIFUL FOOTAGE IN THAT VIDEO. >> Vaughn: GREAT JOB. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: CAROL AND I WERE DOWNTOWN ONE OF THE NIGHTS AND WE RAN INTO A NUMBER OF THE PARTICIPANTS. THEY WERE SUPER EXCITED TO BE HERE. THEY WERE VERY COMPLIMENTARY OF CORPUS CHRISTI AND HAD A WONDERFUL EXPERIENCE. I KNOW FIRSTHAND YOU GUYS DID A GREAT JOB BECAUSE THAT'S WHAT PEOPLE WERE TELLING ME. THANK YOU. >> YES, SIR. CORPUS IS A VERY, VERY COOL PLACE. THANK YOU. >> Mayor Guajardo: THANK YOU. AND THANK Y'ALL FOR BEING HERE. CONGRATULATIONS. YES MA'AM. THANKS KIM. PETER, THAT CONCLUDES YOUR -- >> Zanoni: YEAH. THAT CONCLUDES THE CITY MANAGER'S REPORT. >> Mayor Guajardo: OKAY. GREAT. WE DO HAVE A FEW MINUTES. I'M GOING TO GO AHEAD AND GO THROUGH THE CONSENT AGENDA AND THEN WE'LL GO BACK. SO ARE THERE ANY REQUESTS TO PULL AN ITEM FOR DISCUSSION ON OUR CONSENT AGENDA 2 THROUGH 13? NO. 9. >> 11. >> Mayor Guajardo: NO. 9. NO. 11. I AM GOING TO PULL 12. 18 AND 21. ANYONE ELSE? 10? NO. 10. NO. 6? WE'RE SCRATCHING 18 AND 21. THOSE AREN'T IN CONSENT. WE HAVE NO. 9, 10, 11, AND 12. ANY REQUESTS FROM THE PUBLIC TO PULL ANY ITEM TO MAKE PUBLIC COMMENT ON AT THIS TIME, NUMBERS 2 THROUGH 13. WE'LL CLOSE THAT. I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA WITH THE EXCEPTION OF ITEMS 9, 10, 11, AND 12. >> Barrera: SO MOVE. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. I ALSO JUST WANT TO MAKE A QUICK COMMENT ON ITEM NO. 4. THAT IS OUR PROJECT FINANCING ZONE ITEM. I JUST WANT TO REALLY THANK OUR LEGISLATIVE DELEGATION, PARTICULARLY CHAIRMAN TODD HUNTER AND SENATOR CHUY HINOJOSA FOR THE STRONG PULL AND EVERYTHING THEY DID. IT WAS A GREAT, GREAT EFFORT THAT THOSE TWO GENTLEMEN HELPED US WITH. THIS WOULDN'T BE POSSIBLE WITHOUT CHAIRMAN HUNTER AND THE EFFORTS OF SENATOR CHUY HINOJOSA. THANK YOU TO ALL OF THE DELEGATION BUT ESPECIALLY THOSE TWO GENTLEMEN. WE REALLY APPRECIATE THAT HELP. NO. 9 IS A RESOLUTION IN SUPPORT OF THE PROPOSED 9% LOW-INCOME HOUSING TAX CREDITS. THAT IS BEING PULLED TO -- OH, I'M SORRY. COUNCILWOMAN VAUGHN. >> JENNIFER BUXTON -- >> Vaughn: I'M FOR LOW-INCOME HOUSING, AFFORDABLE HOUSING. THERE'S NO GROCERY STORE. AND IF THERE IS A GROCERY STORE IT'S GOING TO BE TOO EXPENSIVE FOR ANYBODY TO GO TO . THAT'S MY CONCERN ON THIS ONE. DO WE HAVE A STUDY ABOUT WHERE WE NEEDED TO PUT AFFORDABLE HOUSING? ISN'T THAT COMING UP? >> THE HOUSING NEEDS ASSESSMENT REVIEW COMMITTEE DID SOME INTERVIEWS FOR THE RESPONDENTS. WE HAD SOME REALLY GOOD CANDIDATES. WE ARE BRINGING, I BELIEVE, FIRST MEETING IN MARCH, A BUDGET AMENDMENT SO WE CAN ACCEPT THE CORPUS CHRISTI HOUSING AUTHORITY'S PORTION OF THE PAYMENT. SO WE CAN MOVE FORWARD WITH THAT CONTRACT. BUT THAT -- AND THAT IS NOT JUST AFFORDABLE HOUSING, THAT IS ALL INCOME TYPES, ALL HOUSING TYPES CITYWIDE. BUT THAT'S PROBABLY NOT GOING TO BE COMPLETED FOR ABOUT 12 MONTHS. >> Vaughn: OKAY. I'M JUST SAYING WE DO HAVE THE STUDY COMING UP. IT SEEMS LIKE WE JUST CONTINUE TO DO STUFF WITHOUT LOOKING AT IT AND SEEING WHAT EFFECT IT'S GOING TO BE. I'M FOR IT BUT I'M CONCERNED WITH IT BEING DOWN THERE. I THINK IT'S A BAD MOVE. THANK YOU. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: WE TALKED A LITTLE BIT ABOUT THIS. I WANT TO EXPRESS MY CONCERN AS WELL. THE ORIGINAL CONCEPT WAS TO TAKE THOSE RESIDENTS FROM SEAGULL AND PUT THEM IN A NEW FACILITY. IT IS FANTASTIC AND IT IS CLOSE TO THE HOSPITAL WHERE IT IS MORE BENEFICIAL TO THE RESIDENTS. BUT THEN IT WAS ALWAYS DESIGNED TO BECOME A MARKET-RATE FACILITY . I WASN'T ON THE COUNCIL BUT THAT'S MY UNDERSTANDING THAT'S THE WAY THAT PROJECT WAS PRESENTED. I'M DISAPPOINTED THAT IT'S NOT MARKET RATE. NOW, I UNDERSTAND YOU OR SOMEONE HAS WORKED OUT A COMPROMISE. >> THE DEVELOPER HAS WORKED OUT A COMPROMISE WHERE THE BUILDING WILL ACTUALLY NOW BE TWO SEPARATE PROJECTS. BUT ON THE OUTSIDE YOU'LL ONLY SEE ONE. IT IS FOR 60 OF THE UNITS TO BE LOW-INCOME HOUSING AND 40 OF THE UNITS TO BE MARKET RATE. TWO RETAIL SPACES AND ONE EMPLOYEE SPACE. SO IT IS A 40/60 SPLIT BETWEEN MIXED INCOME AND AFFORDABLE HOUSING. IT'S ALSO SPLIT BETWEEN SENIORS AND WHAT YOU WOULD CONSIDER TO BE A GENERAL POPULATION. >> Scott: I UNDERSTAND THAT BUT WHOEVER DID THAT, I WANT TO THANK YOU FOR WORKING OUT A COMPROMISE. IT DOES PUT MARKET RATE -- I THINK IT'S A LEGITIMATE CONCERN THAT THERE'S NO AFFORDABLE GROCERY STORE DOWNTOWN. WHO IS THERE IS WONDERFUL AND THEY HAVE GREAT STUFF AND WE HAVE EATEN THERE BEFORE. THAT IS A CONCERN OF MINE. AT SOME POINT THERE IS GOING TO BE AN ASK FOR SOME ASSISTANCE AND I WANTED TO MAKE SURE I GET AHEAD OF THE CURVE. I DON'T THINK IT'S AN APPROPRIATE USE OF TIRZ MONEY TO HELP FINANCE A PROJECT THAT DOES NOT INCREASE TAX REVENUE TO THE TIRZ. I JUST KIND OF WANT TO GET OUT THERE. IF SOME POINT THIS PROJECT, YOU COME BACK AND SAY, HEY, THEY NEED X AMOUNT OF DOLLARS AND I THINK THE TIRZ OUGHT TO FOUND THAT. I DON'T THINK THAT'S A GOOD INVESTMENT OF TIRZ BECAUSE THE TIRZ CONCEPT IS YOU'RE GOING TO BUILD A $10 MILLION BUILDING, WHICH IS GOING TO GENERATE A MILLION DOLLARS IN TAX REVENUE SO I'M GOING TO GIVE YOU $500,000 TO HELP MAKE IT HAPPEN. I WOULD BE WILLING TO HAVE A CONVERSATION ABOUT THE 60/40 SPLIT AND MAYBE THERE'S SOME TIRZ MONEY BECAUSE OF THAT 40% IN MARKET. I JUST WANTED TO GET AHEAD OF THE CURVE SO IF I BLOW A GASKET A MONTH FROM NOW, YOU'RE NOT SURPRISED. >> JUST TO BE TRANSPARENT, WHEN THIS PROJECT WAS PRESENTED TO THE TIRZ, IT WAS -- THERE WAS A COMMITMENT OF $3,060,000 WHEN THE PROJECT WAS 100 MARKET-RATE UNITS. THE PROJECT IS INDICATING IT NEEDS THE $3 MILLION FROM THE TIRZ FOR THE MARKET-RATE UNITS. AT THIS STAGE IN THE PRE-DEVELOPMENT PROCESS, NUMBERS AREN'T CERTAIN. COSTS AREN'T ALL IN, THEY DON'T HAVE LETTERS OF INTENT. THEY HAVEN'T RUN THE UNDERWRITING THROUGH THE LENDERS. COSTS AREN'T CERTAIN YET. I THINK THAT WE SHOULD EXPECT FOR THE ASKS TO EITHER INCREASE OR DECREASE OR CHANGE AND THE NUMBERS TO BE DIFFERENT FROM WHAT THEY ARE TODAY. IN MY EXPERIENCE, THE ASKS DON'T DECREASE. >> Scott: MY THOUGHT IS IF YOU'RE TAKING A $3 MILLION BUILDING AND YOU'RE GOING TO INVEST SO IT BECOMES A $6 MILLION BUILDING, YOU HAVE INCREASED THE TAX VALUE $3 MILLION, IN WHICH CASE IT GENERATES A MILLION IN REVENUE BUT I DON'T THINK IT'S GOOD PUBLIC POLICY -- AND I'M A LITTLE BIT OF A HYPOCRITE. I ADMITTED THIS TO MY DOWNTOWN FRIENDS WHO EXPRESSED CONCERN OVER THIS PROJECT THAT I DID SUPPORT A TIRZ CONTRIBUTION TO THE CATHOLIC CHURCH ON THE HILL. BUT THAT WAS JUST BECAUSE I WANTED TO BE RIGHT WITH GOD AND I WANT NO ISSUE. AS A PROTESTANT, I WANT EVERYBODY. >> THE NUMBERS ARE STILL PRELIMINARY BUT THERE IS A POTENTIAL THAT WE COULD SIT DOWN AND TALK ABOUT, WELL, IS THERE ANY WAY TO TRANSFER SOME OF THAT SUBSIDY GAP TO THE AFFORDABLE HOUSING SIDE WHERE WE HAVE DEDICATED AFFORDABLE HOUSING SOURCES AND NOT USE SO MUCH OF THE TIRZ. BUT BECAUSE OF THE TWO DIFFERENT OWNERSHIP AND FINANCING STRUCTURES, THAT MAY BE A LITTLE DIFFICULT BUT I'M NOT TAKING IT OFF THE TABLE. >> Scott: MY LAST THOUGHT IS WHAT WE REALLY WANT IS FOR THE PROJECT TO BE IN CORPUS CHRISTI. WE LOVE OUR BRETHREN IN VICTORIA BUT WE DON'T WANT THEM TO GET THIS OPPORTUNITY. MY INTENT IS TO SUPPORT ALL THE PROJECTS. BECAUSE I THINK THIS PROJECT CURRENTLY IS THE HIGHEST -- I GUESS IT SELF-SCORED THE HIGHEST. WHICH MEANS ALL THINGS BEING EQUAL, THOSE TAX CREDITS COME TO CORPUS CHRISTI AND WE GET X MILLION DOLLARS INVESTMENT DOWNTOWN. I THINK THAT'S A GOOD THING. >> YES, SIR. WE HAVE THE NUMBER ONE AND THE NUMBER THREE TOP-SCORING PREAPPLICATIONS. >> Scott: THANK YOU. >> THANK YOU. >> Mayor Guajardo: COUNCILMAN CANTU. >> Cantu: REAL QUICK. I AM WITH COUNCILWOMAN VAUGHN. I THINK IT'S A BAD LOCATION FOR AFFORDABLE HOUSING, ESPECIALLY IF YOU HAVE 60 UNITS, MORE THAN HALF OF THE COMPLEX. THERE'S NO H-E-B. THERE'S NO LAUNDROMATS DOWN THERE. JUST KIND OF TOUGH. HOWEVER, IS THERE A PARKING LOT FOR THAT COMPLEX? >> THERE IS A PARKING LOT ASSOCIATED WITH THE BUILDING. HOWEVER, MARKET CONDITIONS WOULD MOST LIKELY TELL US THAT WOULD BE USED BY THE MARKET-RATE UNITS. THERE ARE VERY FEW LOW-INCOME SENIORS THAT HAVE FULL-TIME TRANSPORTATION CARS, SO THE PARKING NEEDS ARE VERY SMALL FOR SENIOR AFFORDABLE HOUSING DEALS. >> Cantu: BUT IF THEY DO HAVE A VEHICLE, THEY HAVE SOMEWHERE TO PARK WITHOUT GETTING CHARGED FOR IT? >> THE DEVELOPER IS HERE. HE CAN ANSWER THAT QUESTION FOR US. >> HI. DAVID FORNIER. I HEAR THE CONCERNS ON WE ORIGINALLY HAD INTENDED FOR ALL MARKET-RATE UNITS. CRAZY ENOUGH, THAT WAS ALL PRE-COVID, PRE-FINANCIAL CRASH, HYPERINFLATION FROM A CONSTRUCTION STANDPOINT. OUR PREFERENCE WOULD HAVE BEEN TO DO ALL MARKET RATE BECAUSE IT'S A LOT LESS BRAIN DAMAGE, QUITE HONESTLY. BUT IT'S JUST NOT FINANCIALLY FEASIBLE ANYMORE. AND I THINK THIS IS A GOOD MIX. THE PROPERTY HAS BEEN SITTING THERE VACANT. AS WE'VE TRIED TO REWORK NUMBERS, HOPING INTEREST RATES WOULD COME DOWN, HOPING CONSTRUCTION COSTS WOULD COME DOWN. HOPE'S NOT A STRATEGY. SO WHEN THIS OPPORTUNITY PRESENTED ITSELF, WE WEREN'T GOING TO DO IT. WE WERE GOING TO LET ANOTHER DEVELOPER DO IT BUT THEY -- I DON'T KNOW, CHICKENED OUT, I DON'T KNOW WHAT THEY DID. BUT THEY ENDED UP, YOU KNOW, GIVING US BACK THE OPPORTUNITY TO DO THAT. WE'VE GOT EXPERIENCE DOING HISTORIC RENOVATIONS. AND MUCH TO MY PARTNER'S DESIRE, COMPLICATED PROJECTS. SO I UNDERSTAND ALL OF THAT. THE WAY THAT WE'RE GOING TO HANDLE THE PARKING, WE'RE GOING TO CREATE A CONDO STRUCTURE AND SO AS JENNIFER SAID, IT'S TWO PROJECTS BUT THERE'S THE FIRST-LEVEL UNITS THAT WILL BE MARKET RATE. I'LL CALL IT CONDO B. AND THEN THE UPPER FLOOR UNITS WILL BE PART OF THE MARKET-RATE CONDOS. IN THE MIDDLE ARE THE AFFORDABLE CONDOS. THE PARKING LOT WILL KEEP SEPARATE WITH THE MARKET-RATE CONDO. THAT'S THE CONCEPT SO IN THE FUTURE IF IT BECOMES FEASIBLE TO DO A PARKING GARAGE, IT'S NOT RESTRICTED BY THE REGULATORY AGREEMENT. THAT'S ONE OF THE THINGS WE'RE THINKING AHEAD OF TIME. AND SO, YES. THE RESIDENTS WOULD HAVE PARKING AND UNDER TDHCA REGULATIONS YOU CAN'T CHARGE FOR THOSE SORT OF AMENITIES. >> Cantu: THANK YOU SO MUCH. APPRECIATE IT. >> Mayor Guajardo: JENNIFER, WHEN IT WAS GULF -- WHAT WAS IT CALLED? >> IT WAS SEA GULF VILLAS. >> Mayor Guajardo: WAS IT SENIOR AFFORDABLE HOUSING? >> YES, IT WAS. IT WAS SENIORS AND PERSONS WITH DISABILITIES FOR 30% AREA MEDIAN INCOME AND BELOW. >> Mayor Guajardo: IT'S ACTUALLY IMPROVING -- NOT IMPROVING BUT GOING FROM 100% TO 40% BEING MARKET. >> THERE IS A GREATER INCOME TARGET MIX, YES. >> Mayor Guajardo: BUT THAT'S WHAT IT WAS BEFORE. >> YES, MA'AM. >> Mayor Guajardo: THANK YOU. COUNCILMAN HERNANDEZ. >> Hernandez: THANK YOU, MAYOR. YOU KNOW, ONE OF THE BIG ISSUES THAT WE DON'T HAVE, YOU KNOW, WE DON'T HAVE A SHOPPING CENTER AND SUPERMARKET DOWNTOWN IS BECAUSE WE DON'T HAVE PEOPLE. THE MORE PEOPLE, THE MORE AMENITIES COME. WE HAVE TRIED TO GET MORE POPULATION INTO DOWNTOWN. THE MORE POPULATION YOU HAVE, THE MORE THINGS HAPPEN. AND, YOU KNOW, WE HAVE BEEN INCENTIVIZING THEM MORE AND MORE SINCE -- AT LEAST SINCE I HAVE BEEN ON COUNCIL. I UNDERSTAND THEY WANTED TO DO ALL MARKET RATE BUT THE NUMBERS DIDN'T WORK. I WOULD RATHER HAVE SOMETHING THERE THAN ANOTHER EMPTY BUILDING DOWNTOWN. IT'S IMPORTANT THAT WE SUPPORT THIS TO GO FORWARD, SIMPLY BECAUSE WE WANT RESIDENTS DOWNTOWN. WE WANT BUILDINGS TO BE UTILIZED AND I DON'T KNOW WHAT THE ALTERNATIVE IS IF THIS DOESN'T HAPPEN. I KNOW MAYBE WE CAN -- I KNOW THE DOWNTOWN MANAGEMENT DISTRICT ENDORSES THIS SO WE WANT TO GO AHEAD AND GO FORWARD AND I WILL BE VOTING YES ON THIS. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: THANKS FOR YOUR PRESENTATION. FIRST OF ALL, I WANTED TO CLARIFY. BECAUSE A LOT OF PEOPLE -- TO THE PUBLIC, WHEN THEY HEAR THE WORD "AFFORDABLE HOUSING," THEN THERE'S A LOT OF MISNOMERS IN TERMS OF WHAT TYPE OF AFFORDABLE HOUSING. AS I UNDERSTAND THIS TYPE OF PROJECT, IT'S NOT GEARED TOWARDS SECTION 8, RIGHT? >> IT IS NOT GEARED TOWARDS SECTION 8 BUT SECTION 8 CLIENTS CAN LIVE THERE. THERE ARE A CERTAIN NUMBER OF -- SECTION 8, AS WE TYPICALLY THINK OF THEM, ARE HOUSEHOLDS THAT MAKE AT OR BELOW 30% OF THE AREA MEDIAN INCOME. CAN YOU BRING UP THE SLIDE PRESENTATION FOR 9 AND 10? >> Roy: I GUESS WHAT I'M ASKING IS BASICALLY IT IS TIED IN TO THEIR CURRENT INCOME AND WHAT THEY MAKE. >> YES, BUT THE UNITS -- THERE'S A WIDE INCOME MIX TARGETED. I WANT TO SHOW YOU. CAN YOU SHOW MY SCREEN, PLEASE? SEA GULF WAS ON GOLLIHAR. ONE IS SENIOR HOUSEHOLDS. ONE IS FAMILY HOUSEHOLDS. OF COURSE THE BEDROOM SIZES ARE GOING TO BE DIFFERENT. BUT IF YOU LOOK AT SEA GULF VILLAS, THEY HAVE ONE, TWO -- SIX. THEY HAVE SIX UNITS THAT ARE FOR PERSONS AT 30%. YOU CAN SEE THAT THEY HAVE EFFICIENCIES AT 50 AND EFFICIENCIES AT 60. EFFICIENCIES AT UNRESTRICTED. IF YOU HIT ALL OF THOSE BEDROOM SIZES, EXCEPT FOR THE TWO BEDROOMS, YOU'LL SEE THEY ARE ALLOCATED ACROSS ALL OF THE INCOME LEVELS. >> Roy: SO IT'S DEFINITELY BLENDED. THAT'S AN EASY WAY TO SAY IT. >> BLENDED IS A GREAT WAY TO USE IT. IT'S MIXED INCOME. YES. CORRECT. >> Roy: THE OTHER THING I WANTED TO ALSO ACKNOWLEDGE, BECAUSE I DO AGREE WITH COUNCILMEMBER HERNANDEZ. IT'S ALMOST LIKE THE CHICKEN AND THE EGG. WE'VE GOT TO BE ABLE TO DO SOMETHING TO INCREASE OUR DENSITY DOWNTOWN TO BE ABLE TO HAVE A WIDER SELECTION IN TERMS OF GROCERIES. THE GOOD THING IS, YOU LOOK AT H-E-B AND WALMART, THEY DO DELIVER GROCERIES SO THAT'S A BIG PLUS I THINK IN THE COMMUNITY. THE OTHER THING IS ONE OF THE THINGS I KEEP SAYING IS THAT DENSITY IS WHAT HELPS US IN TERMS OF CRIME. IT'S VERY IMPORTANT TO MAKE SURE THAT WE CONTINUE. I JUST HAD A BIG MEETING AND CONVERSATIONS LAST WEEK ABOUT THE HOMELESSNESS. AND IT'S AN ISSUE. BUT IT TENDS TO WORK ITSELF OUT WHEN YOU HAVE AREAS THAT ARE DENSER. AND CRIME. BECAUSE PEOPLE DON'T LIKE TO DO THINGS THAT ARE BAD AROUND OTHER PEOPLE. SO THE MORE PEOPLE YOU HAVE, THE LESS CRIME YOU HAVE. ANYWAY, I'M FOR THIS PROJECT. I THINK IT'S GOING TO BE A GREAT PROJECT FOR THE DISTRICT. I APPRECIATE YOU COMING UP WITH THIS SOLUTION. I DON'T HAVE ANYTHING AGAINST VICTORIA BUT I DO BELIEVE THAT IT WAS GOING TO BENEFIT CORPUS CHRISTI, OUR COMMUNITY. I'M GLAD WE SCORED THE WAY WE DID. THANK YOU. >> THANK YOU, SIR. >> Mayor Guajardo: AT THIS TIME I'M GOING TO PAUSE. WE'RE ABOUT TEN MINUTES INTO THE NOON HOUR AND I DON'T WANT TO BELABOR THE PUBLIC COMMENT HOUR. JENNIFER, IF YOU WILL COME BACK UP AFTERWARDS. >> YES, MA'AM. >> Mayor Guajardo: THAT WOULD BE GOOD. I WANT TO TAKE A MOMENT NOW TO ADDRESS THE RULES OF DECORUM. THIS COUNCIL CHAMBERS IS A PLACE OF PUBLIC BUSINESS. A FORUM FOR CIVIC DISCUSSION, DECISION MAKING, AND SERVICE TO THE PEOPLE OF CORPUS CHRISTI. IT IS NOT A STAGE FOR PERSONAL ATTACKS DISRUPTIONS OR VULGARITY. WE WILL NOT TOLERATE VIOLATIONS OF DECORUM. WE'RE HERE TO DO THE PEOPLE'S WORK SO WE WOULD LIKE TO PROCEED IN THAT SPIRIT. IF YOU WOULD LIKE TO SPEAK ON A SPECIFIC AGENDA ITEM DURING ITS DISCUSSION YOU DO NOT NEED TO SIGN UP BEFOREHAND. I WILL ASK FOR PUBLIC COMMENT WHEN THE COUNCIL CONSIDERS THE ITEM. AT THAT TIME YOU MAY COME UP TO THE PODIUM AND SPEAK . I'LL ASK CITY ATTORNEY MILES RISLEY TO PLEASE REVIEW THE COUNCIL MEETING RULES OF DECORUM. THESE RULES WILL BE DISPLAYED ON THE TELEVISION SCREENS ABOVE FOR OUR AUDIENCE'S REFERENCE. MR. RISLEY. [RULES OF DECORUM] >> Mayor Guajardo: THANK YOU, MR. RISLEY. IF YOU'LL PLEASE STATE YOUR NAME AND THE CITY IN WHICH YOU LIVE BEFORE BEGINNING YOUR COMMENTS. IN-PERSON COMMENTS ARE LIMITED TO THREE MINUTES. FOR CALL-IN OR WEBEX VIDEO SPEAKERS, CORPUS CHRISTI RESIDENTS RECEIVE UP TO THREE MINUTES AND NON-RESIDENTS UP TO ONE. A VISIBLE TIMER POSITIONED NEAR THE CITY SECRETARY'S DESK WILL HELP MANAGE THE ALLOTTED TIME. IF YOU HAVE A PETITION OR ANY RELEVANT INFORMATION, PLEASE PRESENT IT TO THE CITY SECRETARY BEFORE SPEAKING. SO WITH THAT, WE WILL START WITH SANDRA MEYER. >> HELLO. SANDRA MEYER, CITY OF CORPUS CHRISTI. FIRST OFF, THANK Y'ALL ALL FOR WHAT YOU DO. I HOPE WHEN YOU REALIZE WHEN I COME UP AND TALK, I TRY TO PROVIDE SOMETHING OF VALUE THAT WILL HELP YOU SERVE BETTER. BUT TO START OFF WITH, ON A POSITIVE SIDE, IS THANK YOU FOR TELEVISING AND BROADCASTING THE CITY COUNCIL MEETINGS, THE AUDIT MEETING ON YOUTUBE. I DISCOVERED THIS MORNING THAT NOT EVERY CITY DOES THAT. AND OURS ARE OBVIOUSLY WATCHED VERY CLOSELY. AGAIN, THANK YOU FOR DOING THAT. OKAY. NOW ON THE NOT SO GOOD SIDE IS I WAS VERY DISAPPOINTED A COUPLE OF WEEKS AGO WHEN THE POLICEMAN WAS NOT ALLOWED TO PRESENT THE REPORT. I FELT LIKE THEY WORKED VERY, VERY HARD TO DO THAT REPORT ABOUT THE HOMEWOOD SUITES ALLEGATION. IT JUST SEEMED AN UNFAIR THING THAT THEY SAT HERE ALL DAY AND DID THAT. I DID REQUEST THE OPEN RECORDS, THE POLICE REPORT. I DISCOVERED YOU CANNOT READ IT ON IPAD. BUT I FINALLY GOT IT OPEN. THE FIRST TIME I READ IT -- TO BE HONEST, I DID NOT WATCH ALL THOSE DEPOSITIONS THAT WERE BEING BROADCAST. AS A FORMER AUDITOR, I KIND OF LIKE TO KNOW WHAT THE CRITERIA IS. AND SO I DID NOT EVER UNDERSTAND WHAT THE POLICIES AND PROCEDURES WERE THAT THEY WERE SUPPOSED TO BE DOING WITH THE TYPE B AND THE AWARDING OF THE ALLOCATION. I DO UNDERSTAND AUDIT STUFF, THOUGH. AND SO I WAS INTERESTED WHEN THE REPORT CAME OUT. WHEN IT CAME OUT, I ACTUALLY READ IT THREE DIFFERENT TIMES BECAUSE SKIMMING THROUGH, AND I WAS VERY IMPRESSED WITH HOW THE POLICEMEN PRESENTED THE INFORMATION. AT ONE POINT I SAW THEY ASKED FOR INFORMATION FROM THE AUDITORS AND IT WAS LIKE A COPY OF THE TYPE B BOARD MEMO OR MEMORANDUM. AND SOMETHING ABOUT THE DEPOSITIONS. THE AUDITOR GAVE THEM A COPY OF IT. THEY GAVE THEM -- OR TOLD THEM THEY WERE GOING TO BRING OVER THE DEPOSITIONS. AND THEN THEY GAVE THE POLICE OFFICERS -- IF I READ IT CORRECTLY -- A LINK TO LEGISTAR SO THEY COULD FIND THE INFORMATION THEMSELVES. AT FIRST I THOUGHT IT WAS KIND OF FUNNY. YOU GIVE THE POLICE A LINK TO LEGISTAR TO FIND IT YOURSELF? SO I GO BACK A FEW DAYS LATER, LOOK AT IT AGAIN. YEP, THAT'S WHAT IT SAID. SO I WENT BACK TO THE NOVEMBER AUDIT MEETING AND THERE WAS A BIG DISCUSSION ABOUT NOT BEING ABLE TO GET THE ATTORNEYS THAT ARE DOING THE INVESTIGATIONS NOT BEING ABLE TO GET THE INFORMATION FROM THE AUDITORS. AND AT FIRST I THOUGHT IT WAS JUST A CONFUSION OVER IF THEY FELT COMFORTABLE GIVING INFORMATION TO THE ATTORNEYS, ESPECIALLY OUR IN-HOUSE. BUT AS I LISTENED, AT ONE POINT GEORGE, THE CITY AUDITOR, IS LIKE YOU GOT TO REMEMBER THIS IS AN INVESTIGATION. WE DID NOT HAVE AN AUDIT REPORT LIKE YOU WOULD NORMALLY HAVE AN AUDIT REPORT STUFF. GOING BACK TO THE FAILED PEER REVIEW, THAT WAS ONE OF THE CONCERNS IS THAT THEY WERE -- [TIMER] THAT'S ALL. >> Mayor Guajardo: THANK YOU, MS. MEYER. ALEJANDRO CHAVERA. >> GOOD AFTERNOON, COUNCILMEN, MAYOR. I'M HERE TODAY TO TALK TO YOU ABOUT THE MAIN THING THAT IS GOING ON IN CORPUS CHRISTI -- >> City Secretary: STATE YOUR NAME AND CITY. I'M SORRY TO INTERRUPT, SIR. CAN YOU STATE YOUR NAME AND CITY. >> ALEJANDRO CHAVERA, CORPUS CHRISTI TEXAS. I'M HERE TO TALK ABOUT FOG NETS. FOG NETS HAVE BEEN USED IN A LOT OF COUNTRIES FOR OVER 40 YEARS IN AFRICA AND CHILE. THESE FOG NETS COLLECT THE FOG THAT WE HAVE ALMOST EVERY DAY HERE, TURN IT TO FRESH WATER AND TURN IT TO MILLIONS OF GALLONS. THEY CAN ALSO COLLECT THE RAINWATER. FRESH WATER. NO DESAL. THIS IS NATURAL. ANOTHER THING IS WE SHOULD HAVE LOOKED INTO WATER HARVESTING THE ATMOSPHERE BEFORE WE DECIDED TO DO DESAL. THE REASON I SAY THIS IS ALSO NO MOVING PARTS AND WHAT YOU'RE DOING IS YOU'RE TAKING THE NATURAL WATER THAT IS BEING EVAPORATED EVERY DAY AND NIGHT OUT AT SEA AND TURNING THAT INTO FRESH WATER. CALIFORNIA DOES THAT. THERE'S OTHER THINGS WE COULD BE DOING. WE COULD BE DOING STUFF IN THE CITY. ORGANIZING OUR WASTEWATER. WE COULD USE SOME OF THAT WASTEWATER WITH INDUSTRY AND DON'T HAVE TO SHARE FRESH WATER. WITH THIS SYSTEM WE COULD MAKE ANOTHER LAKE NEARBY AND GET THAT RIVER WALK THEY ALWAYS TALKED ABOUT IN CORPUS CHRISTI. WE WOULDN'T BE HAVING TO RELEASE ANY WATER BECAUSE WE WOULD BE MAKING THE LAKE AND IT WOULDN'T BE ALONG A RIVER SO WE WOULDN'T BE GOVERNED BY THAT. THE ONLY WATER WE WOULD BE RELEASING IS THE OVERFLOW OF THE WATER WE COLLECTED. AND THERE'S A LOT OF OTHER THINGS. OUR STREETS, WE COULD REDESIGN OUR STREETS, LIKE OTHER CITIES HAVE. AND THEY ALLOW SOME OF THAT WASTEWATER TO ACTUALLY GO BACK INTO THE GROUND. WE DON'T DO THAT. WE JUST DRAW THEM ALONG THE BIG PIPES THAT KEEP ON BUSTING THAT WE HAVE TO KEEP SPENDING MONEY ON. OTHER CITIES HAVE DEVELOPED LIKE A SMALL SUBWAY THAT GOES UNDERNEATH THE STREETS AND ALL THE PIPING AND EVERYTHING IS IN THERE. WHEN THERE'S STORMS, YOU DON'T HAVE TO WORRY ABOUT FALLEN TREES -- YOU MIGHT HAVE TO WORRY ABOUT FALLEN TREES BUT YOU DON'T HAVE TO WORRY ABOUT TELEPHONE POLES FALLING AND THE DESTRUCTION THAT COMES WITH IT. EVERYTHING IS PROTECTED. WE HAVE TO LOOK AT THE FUTURE BECAUSE THESE SEAS ARE GOING TO BE HIGHER. THERE'S A POINT WHERE WE'RE GOING TO HAVE TO DECIDE IF WE ALLOW HOUSES TO EVEN BE BUILT ALONG THE WATER. WE HAVE TO REDESIGN OUR STREETS. WE HAVE TO REDESIGN OUR CITY. MAKE IT GREENER. TAKE SOME OF THESE LOTS THAT ARE EMPTY, MAKE THEM NEIGHBORHOOD VEGETABLE GARDENS. THANK YOU VERY MUCH. THANK YOU. MATTHEW DESHIELDS. DAVID AINSWORTH, JASON HALE, SUSIE SALDANA, AND KRISTEN COOK. >> HELLO, MAYOR AND COUNCIL. THANKS FOR LETTING ME SPEAK. MY NAME IS MATTHEW DESHIELDS FROM HERE IN CORPUS CHRISTI. I'M HERE TODAY TO TALK ABOUT ITEM NO. 21 ON BEHALF OF THE COASTAL BEND TEXAS RESTAURANT ASSOCIATION CHAPTER. AND WE ARE ACTUALLY IN SUPPORT OF THE NEW FEES. NOW, WHEN THEY FIRST CAME OUT, WE WEREN'T IN SUPPORT. BUT I WANT TO THANK DR. KURIAN AND THEIR STAFF FOR REACHING OUT TO US AND MEETING WITH US. WE ACTUALLY CAME TO AN AGREEMENT AND WE HAD A HAND IN CREATING THE FEES THAT Y'ALL WOULD BE PRESENTED LATER TODAY. I COULD SPEAK MORE LATER AFTER THAT PRESENTATION BUT THAT'S IT FOR TODAY. I JUST WANTED TO LET Y'ALL KNOW THAT WE ARE IN SUPPORT OF THAT AND WE CAN SPEAK LATER ABOUT IT. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. DESHIELDS. DAVID AINSWORTH. >> MAYOR, COUNCIL MEMBERS. THANK YOU FOR THE OPPORTUNITY TO SPEAK. MY NAME IS DAVID AINSWORTH, SR. CASTLE RIVER DRIVE DISTRICT 1 RESIDENT, BORN AND RAISED HERE. I'M A HOME BOY, AKA RIVER RAT. CALALLEN CLASS OF 1978. I'M HERE TODAY, NOT IN OPPOSITION TO ANY CONTRACT, BUT IN SUPPORT OF ONE SHARED OBJECTIVE: SECURING RELIABLE WATER FOR CORPUS CHRISTI. THIS IS A DEFINING MOMENT FOR THE CITY. INDUSTRY IS GROWING. RESIDENTS ARE CONCERNED. DROUGHT CONDITIONS CONTINUE TO TEST OUR RESILIENCE. WE RECOGNIZE THE SERIOUSNESS OF THE DECISIONS BEFORE YOU AND WE RESPECT THE WORK THAT HAS GONE INTO ADVANCING DESALINATION AND OTHER SUPPLY PROJECTS. OUR PURPOSE TODAY IS SIMPLE: WE WANT TO FORMALLY EXPRESS OUR INTEREST IN PARTNERING WITH THE CITY OF CORPUS CHRISTI TO BRING ADDITIONAL TOOLS, ADDITIONAL CAPACITY, AND ADDITIONAL SPEED TO THE SOLUTION. WATER SECURITY IS NOT A SINGLE PROJECT CHALLENGE. IT REQUIRES LAYERED SOLUTIONS, CONSERVATION REUSE DESALINATION, AND INNOVATION WORKING TOGETHER. OUR TEAMS BRING A PATENTED MODULAR TREATMENT TECHNOLOGY, EXPERIENCED INDUSTRIAL OPERATORS, AND MARINE SCALE DESALINATION VISION, ALL TEXAS BASED, READY TO SUPPORT THE CITY. WE ARE NOT ASKING YOU TO CHANGE COURSE, WE ARE ASKING YOU TO ALLOW US TO CONTRIBUTE. CORPUS CHRISTI CAN BECOME A MODEL FOR COASTAL WATER RESILIENCE IN TEXAS AND BEYOND. THAT REQUIRES COLLABORATION, NOT COMPETITION. THIS IS PART ONE OF THREE PARTS BY THE PRINCIPLES OF PRIONICS WHO ARE HERE TODAY TO SPEAK. THIS CONCEPT WAS PRESENTED TO THE CITY COUNCIL TEN YEARS AGO IN 2015. BUT SINCE IT WAS PRESENTED TO SUPPLY 100 MILLION GALLONS OF WATER PER DAY, IT WAS TURNED AWAY SINCE THE CITY WASN'T IN NEED OF 100 MILLION GALLONS A DAY. WE NEED 100 MILLION GALLONS OF WATER A DAY. EACH OF YOU HAS RECEIVED A TEXT FROM ME THIS MORNING EMPHASIZING AS A HEADS UP, AFTER SPEAKING TO GOVERNOR ABBOTT AND TODD HUNTER LAST NIGHT. THEY ASKED ME PLEASE DON'T SLOW DOWN. PURSUE THIS. THANK YOU FOR YOUR TIME. GOD BLESS YOU. >> Mayor Guajardo: THANK YOU, MR. AINSWORTH. JASON HALE. JASON HALE, CORPUS CHRISTI. THANK YOU, MAYOR. GOOD AFTERNOON, COUNCILMEMBERS. JUST WANTED TO SHARE SOME RESOURCES ON GROUNDWATER AND GROUNDWATER MANAGEMENT. IT BECOMING A BIGGER PART OF OUR WATER PORTFOLIO, AND IT'S PRETTY NEW TO A LOT OF PEOPLE, SO I FIGURED THESE WOULD BE HELPFUL RESOURCES. SO LAST WEEK THERE WAS A PUBLIC HEARING ON GROUNDWATER MANAGEMENT AND AQUIFER SUSTAINABILITY AT THE TEXAS HOUSE COMMITTEE ON NATURAL RESOURCES. IT WAS A SIX-HOUR LONG MEETING. THERE WAS A LOT OF GOOD DISCUSSION, BUT I WANTED TO HIGHLIGHT JUST A COUPLE OF PARTS OF THAT. ONE OF THEM WAS AT ABOUT THE TWO AND A HALF HOUR MARK, THE SPEAKER WAS WADE OLIVER AND HE WAS SPEAKING ABOUT THERE'S A LOT OF GMAS IN TEXAS, GROUPED INTO TWO DIFFERENT TIMES. ONE ON THE WEST DEALS MOSTLY WITH UNCONFINED AQUIFERS AND ONE IS ON THE RIGHT WHICH DEALS WITH A MIX OF CONFINED AND UNCONFINED AQUIFERS. ONE THING I'VE HEARD RECENTLY IS THAT, LIKE, THE PRESSURE IN PEOPLE'S WELLS IS IMPORTANT IN RELATION TO PRODUCTIVITY, AND THAT'S A CONCERN WITH SOME OF OUR NUECES RIVER GROUNDWATER WELLS. AND SO THAT'S SOMETHING I KIND OF WANTED TO FLAG FOR Y'ALL. THE OTHER PART FROM THE HEARING I WANTED TO HIGHLIGHT WAS DR. ROBERT MAY SAN ANTONIO'S PRESENTATION WHICH STARTED AT ABOUT THE FIVE-HOUR MARK, AND HE'S FROM THE MEADOW CENTER. HE DOES A LOT OF GREAT WORK. SO HE HAD DONE A STUDY ABOUT FIVE YEARS AGO THAT KIND OF LOOKED AT GROUNDWATER MANAGEMENT SUSTAINABILITY, AND THE CONCLUSION FROM HIS STUDY WAS THAT ABOUT 90% -- NO, WAIT. MOST OF THE AQUIFERS IN TEXAS ARE BEING MANAGED AT 90% OF THEIR SUSTAINABLE PRODUCTION, WHICH IS IMPORTANT TO HIGHLIGHT AS, YOU KNOW, TEXAS CONTINUES GROWING AND SOMETHING TO BE COGNIZANT OF. AND PROBABLY THE MOST IMPORTANT THING IS THAT GCDS ARE NOT REALLY REQUIRED TO LOOK AT THE SUSTAINABILITY OF THEIR GROUNDWATER MANAGEMENT. SO IT'S SOMETHING I WANTED TO HIGHLIGHT TO Y'ALL BECAUSE I THINK IT'S SOMETHING THAT RESIDENTS ARE VERY INTERESTED IN AND WOULD LIKE MORE INFORMATION ABOUT. SO HERE'S THAT STUDY. MOST OF THE -- ALL THE PICTURES FROM HERE HAVE BEEN FROM THAT STUDY. AND SO HERE'S THE MAIN THING: SO WHAT I'M TALKING ABOUT IS SUSTAINABLE GROUNDWATER MANAGEMENT, AND BASICALLY WHAT THAT MEANS IS HOW MUCH WATER CAN YOU TAKE OUT EVERY YEAR IN PERPETUITY? I'M RUNNING OUT OF TIME, BUT, YEAH, I HAD GIVEN Y'ALL A HANDOUT WITH SOME QUESTIONS. PLEASE LOOK THAT OVER WHEN YOU GET THE CHANCE. THANKS. >> Mayor Guajardo: THANK YOU, MR. HALE. SUZIE SALDAÑA. >> SUZIE LUNA SALDAÑA, CORPUS CHRISTI, TEXAS. I COME BEFORE YOU TODAY TO TELL YOU AS YOU LISTEN TO PUBLIC COMMENT TODAY, YOU'RE GOING TO HEAR A LOT OF ISSUES ABOUT THE HOLLYWOOD SUITES AND HOW THAT -- THOSE THINGS ARE COMING ALONG. AND I'M TELLING YOU, JUST LIKE THIS LADY THAT SPOKE PREVIOUS TO ME, IT'S TIME TO PUT IT BEHIND YOU, YOU NEED TO LISTEN TO YOUR LAWYER FIRST. I WANT YOU TO REMEMBER ONE THING IN PARTICULAR: THIS LAWSUIT WAS STARTED BY A PERSON THAT SECRETLY RECORDED OUR CITY MANAGER IN ORDER TO TRAP HIM SO HE COULD FILE THIS LAWSUIT. AND THAT LAWSUIT HAS BEEN FILED. AND IT'S COSTING OUR TAXPAYERS THOUSANDS AND HUNDREDS AND THOUSANDS OF DOLLARS. SO HE'LL PROBABLY PLAY YOU EXCERPTS OF, I DON'T KNOW, MAYBE TESTIMONY THAT WAS GIVEN BY HIS ATTORNEY. AND, YOU KNOW, ATTORNEYS CAN MANIPULATE ANY KIND OF QUESTION YOU WANT. THEY CAN ASK IT ANY 10,000 WAYS AND GET THE ANSWER THEY WANT FROM YOU. BUT I ASK YOU TO THINK ON YOUR OWN. THINK ABOUT WHAT'S IMPORTANT TO YOU AND TO THE CITIZENS OF THIS COMMUNITY. TIME TO LISTEN TO THE PEOPLE THAT ARE KNOWLEDGEABLE. YOU CAN'T TELL ME IT'S A CONSPIRACY BECAUSE I READ THAT REPORT FROM OUR POLICE DEPARTMENT FROM THE TEXAS RANGERS, FROM THE FBI. ALL OF THEM GOT TOGETHER AND THEY DECIDED TO CONSPIRE AGAINST YOU, THE PEOPLE. I'M TELLING YOU, IT'S TIME FOR YOU TO PUT YOUR THINKING HATS ON AND PUT THESE PEOPLE IN THEIR RIGHT PLACE. LET'S LET THEM PICK UP THEIR LAWSUIT AND GO AWAY SO WE CAN KEEP THE MONEY THAT WE'RE SPENDING ON ATTORNEYS FOR THE CITIZENS OF CORPUS CHRISTI AND NOT FOR THEIR OWN PUBLIC PLAYGROUND. REMEMBER HOW IT STARTED, YOU DECIDE THE ENDING. >> Mayor Guajardo: THANK YOU, MS. SALDAÑA. KRISTEN COOK. THANK YOU, MAYOR AND CITY COUNCIL. KRISTEN COOK, CITY OF CORPUS CHRISTI RESIDENT AND EXECUTIVE DIRECTOR OF SOUTH TEXAS MILITARY TASK FORCE. WE WANT TO THANK YOU, FIRST, FOR YOUR CONTINUED SUPPORT TO THE TASK FORCE AND ONE OF OUR AREAS MOST IMPORTANT MILITARY INSTALLATIONS, CORPUS CHRISTI ARMY DEPOT. I FULLY SUPPORT THE RESOLUTION AND APPRECIATE THE CITY'S ADVOCATING FOR ONE OF OUR LARGEST EMPLOYERS IN THE CORPUS CHRISTI AREA. MANY MEMBERS OF THE DEPOT, PRESENT AND PAST AND MEMBERS OF OUR TASK FORCE ARE HERE TODAY. AND TO STRESS THAT CCAD IS A BRIT CAL ELEMENT OF OUR NATIONAL DEFENSE. HELICOPTERS CONTINUE TO BE NEEDED BY OUR MILITARY TO DELIVER SUPPORT FOR MANY MISSIONS IN PEACETIME AND IN WAR. THE 50/50 WAR WAS MADE TO ENSURE OUR NATION HAS THE MILITARY EQUIPMENT IT NEEDS WHEN IT NEEDS IT, AND BEING GOOD STEWARDS OF TAXPAYER DOLLARS AT THE SAME TIME. PRESIDENTIALLY CCAD IS RECEIVING WELL BELOW 50% OF ITS WORKLOAD THAT GOES FROM THE ARMY FOR HELICOPTER REPAIR. IF THIS CONTINUES, CCAD WILL HAVE NO CHOICE BUT TO DOWNSIZE EVEN FURTHER. WHEN THE WORKFORCE GOES DOWN, THAT HURTS OUR WHOLE COMMUNITY AND OUR NATION AT THE SAME TIME. AGAIN, THANK YOU FOR THIS RESOLUTION. THANK YOU FOR YOUR CONTINUED SUPPORT. >> Mayor Guajardo: THANK YOU, MR. COOK. ZACHARY BORNSTEIN. >> [OFF MIC] >> Mayor Guajardo: ON. THANK YOU. JAY FALLWELL. >> GOOD AFTERNOON, COUNCIL. SO I'M BACK AGAIN BECAUSE I STILL HAVE ISSUES WITH YOUR ONE-MINUTE TIME FRAME. I'M STILL A CITIZEN, STILL ACQUIRED CITIZEN RIGHTS. >> Mayor Guajardo: SIR, YOU ACTUALLY HAVE THREE MINUTES. I THOUGHT YOU WERE DOING ONE MINUTE. THANK YOU FOR CORRECTING THAT. I APPRECIATE IT. >> City Secretary: AND CAN YOU ALSO STATE YOUR NAME AND CITY FOR THE RECORD, PLEASE. >> GNOME I WILL NOT. THAT IS A FIRST AMENDMENT I CAN DO IT ANONYMOUS, IF YOU DON'T LIKE IT, YOU CAN KISS MY ASS. >> Risley: MAYOR, I WOULD LIKE TO OBJECT TO THE PRO FARNTY. >> YOU CAN OBJECT ALL YOU WANT. I'M NOT THREATENING YOU ARE NOW INTERRUPTING MY TIME TO SPEAK. >> Risley: YES. >> YOU ARE DISRUPTING A PUBLIC MEETING ON AGENDA ITEMS, CITIZENS COMMENTS, NOT YOURS. >> Risley: THIS IS A LIMITED PUBLIC FORUM. >> AND I STILL HAVE LIMIT OF SPEECH. >> YOU DO NOT HAVE THE RIGHT TO UPHOLD A CONSTITUTIONAL AND PROTECTED RIGHT. YOU DO NOT HAVE THE RIGHT TO SHIT ON IT. PLEASE STOP. >> Risley: SECOND OBJECTION, PROFANITY. >> DON'T PUT YOUR HANDS ON ME. >> Mayor Guajardo: SIR, HE'S EXPLAINED TO YOU -- >> IF I'M UNDER DURESS OF ARREST I'LL LEAVE, BUT IF NOT, I'M GOING TO CONTINUE MY COMMENT. >> Mayor Guajardo: SIR, HE JUST EXPLAINED TO YOU THE RULES OF DECORUM THAT YOU BROKE. I UNDERSTAND THAT, BUT YOU BROKE THAT. >> CONSTITUTION -- >> Mayor Guajardo: SIR, THANK YOU. YOUR PUBLIC COMMENT -- >> DEUR REST, I HAD TIME TO SPEAK. I WOULD LIKE TO SPEAK. AM I UNDER ARREST? YES OR NO. >> Mayor Guajardo: WE NEED YOU TO -- YES, SIR. SIR, WE NEED YOU -- I'M ASKING YOU TO LEAVE, PLEASE. I'M ASKING YOU TO LEAVE. >> UNDER THREAT OF DURESS. >> Mayor Guajardo: BASED ON WHAT OUR ATTORNEY JUST TOLL YOU. >> DO NOT TOUCH ME -- >> Risley: MAYOR, HE IS VIOLATING THE DURING PUBLIC COMMENT. >> Mayor Guajardo: REBECCA, TURN THAT OFF. >> YES, WE DID. >> Risley: I WAS GOING TO SAY, ALL COMMENTS DURING PUBLIC COMMENT NEED TO BE DIRECTED AT THE CITY COUNCIL RATHER THAN THE PERSONS AROUND THE COMMENTER, SO HE WAS VIOLATING THAT RULE AS WELL. THANK YOU. >> Mayor Guajardo: THANK YOU. ROBERT MEISS. >> [OFF MIC] >> Mayor Guajardo: YES, YES, YES. LET US -- WE'RE GOING TO TURN YOUR MICROPHONE ON. MRS. HUERTA, CAN YOU PLEASE MAKE SURE -- JUST YOUR NAME AND CITY. >> BOB MAYE SERK FROM MAGNOLIA TEXAS AND WITH A COMPANY CALLED PRIONICS HERE WITH DAVID AINSWORTH TODAY. DAVID SHARED OUR FLYER ON INFORMATION WE HAVE, BUT WE HAVE A PATENTED PROCESS WHICH HAS BEEN AS DAVID MENTIONED IN THE WORKS FOR OVER 10 YEARS FROM A GROUP OVER $3 MILLION INVESTED IN FRONT-END ENGINEERING, SO IT'S BEEN VERY WELL THOUGHT OUT WITH THE ARCHITECTURAL MARINE COMPANY, BUT IT INVOLVES TAKING AN AFTER MAX TANKER, A USED CREW CARRIER, IT'S A MEDIUM SIZE, IT IS ACCESSIBLE TO GET INTO THE PORTS AND THE SHIPYARDS ALONG THE COAST. AND THE IDEA IS -- WHAT CAME TOGETHER IS MODULAR UNITS THAT CAN DO WATER TREATING, AND WHAT THE PATENT SHOWS IS THAT YOU CAN HELP TO REDUCE GREATLY THE ENVIRONMENTAL IMPACT FOR COASTAL, COASTAL ZONE MANAGEMENT, FOR AIR EMISSIONS IS MOVED OFFSHORE, TOGETHER WITH THE INLET WATER AND THE BIGGEST THING IS THE DISCHARGE OF THE SALT. SO THERE'S A LOT OF SALT THAT'S INVOLVED WITH PROCESSING 100, 150 MILLION-GALLONS OF WATER. YOU TAKE IT INTO A PLACE THAT'S ALREADY BEEN IDENTIFIED OFF THE COAST OF CORPUS, PORT ARANSAS, THAT HAS A DEEP CANYON HOLE, AND IT'S BELOW MOST OF THE LIFE FOR YOUR AQUATIC LIFE. AND WHAT IT ALSO DOES IS, BY THE PROCESS, YOU CAN DILUTE THE SALT BACK DOWN TO THE SALINITY OF SEAWATER. SOLUTION TO POLLUTION DILUTION. IN THIS CASE IT WORKS THE DIRECT WAY, YOU GET THE SALT REDUCED AND IT'S BEEN DONE IN ISRAEL FOR THEIR DESALINATION AND THEY GET ENVIRONMENTAL KUDOS FROM AROUND THE WORLD. SO IT HAS BEEN VERY WELL THOUGHT OUT, THERE'S A LOT OF ENGINEERING WORK, AND WE FEEL LIKE THE TIMING IS RIGHT, YOU KNOW, TO TAKE THE CHARGE AND MOVE ON WITH THIS. AND WE'D LIKE TO WORK WITH THE CITY AND THE STATE OF TEXAS BECAUSE THE MATH ON IT COMES BACK THAT THE RATES THAT WE'RE CURRENTLY CHARGING FOR CITY WATER, YOU CAN ACTUALLY IN A FOUR TO FIVE YEAR, SIX-YEAR TIME PERIOD, ON A 30-YEAR PROJECT WHICH IS PRETTY REASONABLE, YOU'LL BREAK EVEN AND YOU'LL GO TO A MONEY MAKING PROJECT FOR OFFSHORE. SO FIX THE PROBLEM. THE OTHER PIECE OF IT IS, THE MODULAR UNITS THAT COMPRISE THE SYSTEM CAN BE DEPLOYED TODAY, SO WE'VE GOT EQUIPMENT AVAILABLE SO YOU CAN DO SOME OF THE WASTEWATER TREATING, SOME OF THE THINGS, AND WATER TREATING IS NOT ONE SIZE FITS ALL, BUT YOU CAN GET TO THE PROBLEM THAT YOU'RE TRYING TO FIX AND ADDRESS IT AND HAVE REALTIME SOLUTIONS, SO THE KEY IS START WITH THE INDIVIDUAL YOU CAN TAKE CARE OF NOW, AND THEN WORK TOWARDS THE LONG-TERM. AND WE'RE AVAILABLE TO HELP WITH GUIDE A TEAM OR SELECTED, JUST LIKE TO BE PART OF A REALLY GOOD SOLUTION FOR THE CITY AND THE STATE. QUESTIONS? THANK Y'ALL FOR YOUR TIME. >> Mayor Guajardo: YEAH. THANK YOU, SIR. >> YOU BET. >> Mayor Guajardo: THANK YOU. COUNCIL -- NO, WE'RE NOT -- SHE'S NOT. COUNCILWOMAN PAXSON? >> Paxson: THANK YOU, MAYOR. PETER COULD WE GET A STATUS ON THIS PROJECT? IT CERTAINLY SOUNDS LIKE AN INCREDIBLY VIABLE, VERY SOON TURNAROUND BETWEEN OUR ORGANIZATION AND OUR PARTNERS AT THE STATE HAVE SOME GREAT POTENTIAL. CAN WE LOOK AT THIS EXPEDITED? >> Zanoni: WE CAN. THIS IS THE FIRST WE'RE HEARING OF IT, BUT WE DO HAVE THE GENTLEMAN'S INFORMATION, SO WE'LL LOOK INTO IT. >> Paxson: THAT WOULD BE INCREDIBLE. THANK YOU SO MUCH. >> Mayor Guajardo: WE HAVE KENNETH KRA SYN SKI. >> THANK YOU, MAYOR AND COUNCILMEMBERS. WE REALLY APPRECIATE Y'ALL GIVING US YOUR TIME AND EFFORT. WE APPRECIATE Y'ALL'S SERVICE. MY NAME IS KENNY KER CHEN SKI, I USED TO LIVE IN CORPUS CHRISTI, I LIVE IN SPRING BRANCH, TEXAS, UP ABOVE SAN ANTONIO. WE PLAN ON MOVING BACK HERE TO THIS AREA. MY WIFE AND I HAVE FRIENDS AND FAMILIES AND SHE WAS A TEACHER HERE AND I'M A MEMBER OF ONE OF THE PEOPLE OF PRIONICS, AND WE CARE ABOUT WATER. YOU KNOW, WATER IS -- WITHOUT -- THREE DAYS YOU'RE GOING TO DIE IF YOU DON'T HAVE SOMETHING TO DRINK. AND WATER IS VERY IMPORTANT. IT AFFECTS OUR FAMILIES, JOBS, THE FUTURE. CORPUS CHRISTI IS IN A DIRE STRAIGHT, AND IT'S NOT ONLY CORPUS, IT'S ALL THE SURROUNDING COMMUNITIES. THIS PATENTED PROCESS CAN SOLVE PROBLEMS IN ALL THE NEIGHBORING TOWNS. CORPUS CHRISTI CAN BE THE LEADER OF THE WATER CRISIS IN THE STATE OF TEXAS. WE LOOK FORWARD TO JUST HAVING THE OPPORTUNITY TO WORK WITH Y'ALL. WE HAVE AN EXCELLENT TEAM. WE'VE ALREADY GONE THROUGH A LOT OF THE PHASES OF THE FEED STUDY, US AND THE ORIGINAL PATENT HOLDER HAS INVESTED TWO AND A HALF TO $3 MILLION ON ENGINEERING. WE'RE READY TO IMPLEMENT THIS THING. I KNOW THERE'S OTHER. WE'RE NOT HERE TO TRY TO COMPETE AGAINST ANYBODY, BUT THIS IS A BIG PROBLEM ACROSS THE UNITED STATES. EVERYWHERE FROM REFINERIES, YOUR STEEL MILLS, YOUR MUNICIPALITIES, WE'RE HERE TO HELP. AND WE THINK WE CAN -- YOU KNOW, WE HAD A GREAT MEETING WITH JIM WRIGHT LAST NIGHT WITH THE RAILROAD COMMISSION, WE'RE SUPPOSED TO MEET WITH HIM NEXT WEEK. WE'RE HERE TO HELP. WE CAN SOLVE THIS ISSUE TOGETHER. AND WE APPRECIATE YOUR TIME. >> Mayor Guajardo: THANK YOU, MR. KRA CHI CHEN SKI. HENRY WILLIAMS? >> MAYOR, CITY COUNCIL MEN AND WOMEN, MR. ZANONI, CITY SECRETARY, PEOPLE IN THE AUDIENCE, I CONDUCT A PRAYER MEETING THE THIRD THURSDAY OF EACH MONTH AT THE CORPUS CHRISTI POLICE DEPARTMENT. >> City Secretary: RERCHED WILLIAMS, CAN YOU PLEASE STATE YOUR NAME AND CITY PLEASE. >> HENRY WILLIAMS, CORPUS CHRISTI. >> City Secretary: THANK YOU, SIR. >> I'VE BEEN CONDUCTING THAT MEETING IT WILL BE 30 YEARS IN MAY. AND WE HAVE SEEN CRIME, LAWLESSNESS AND VIOLENCE CONTINUE TO DECREASE. OUR WATER PROBLEM, YOU KNOW, THERE ARE PROBLEMS THROUGHOUT OUR NATION. YOU KNOW, Y'ALL HAVE FIRES IN THE WEST AND YOU'LL HAVE FLOODS IN THE EAST AND YOU'LL HAVE DROUGHTS. THESE ARE MORAL ISSUES FOR OUR LAND. WE HAVE PEOPLE, YOU KNOW, PEOPLE WHO HAVE EXPERTISE WITH REGARD TO SOLVING THE WATER PROBLEM. OKAY. AND WE NEED TO BOTH TAKE ADVANTAGE OF THAT EXPERTISE, BUT ALSO REMEMBER THAT WE ARE A PEOPLE -- WE ARE A PEOPLE OF PRAYER. AND WE NEED TO SEEK GOD FOR HIS SOLUTION TO THE PROBLEMS THAT WE'RE HAVING. OKAY? AND I WOULD LIKE TO INVITE -- I'D LIKE TO INVITE YOU TO THE PRAYER MEETING THAT WE HAVE THIS THURSDAY AT THE CORPUS CHRISTI POLICE DEPARTMENT, FIFTH FLOOR AUDITORIUM. WE'VE BEEN DOING IT FOR MANY YEARS INDEED. POLICE CHIEF MARKLE, ASSISTANT CHIEF DAVID BLACKMAN, THEY'RE FAMILIAR WITH THIS. I'D ALSO LIKE TO MENTION NEXT WEEK'S CITY COUNCIL MEETING, THE INNER HARBOR DESALINATION WILL BE COMING BACK BEFORE YOU ALL, I WOULD ASK THAT YOU SAY NO TO IT. IT IS DESTRUCTIVE BOTH TO THE HILLCREST NEIGHBORHOOD AND IT IS ALSO DESTRUCTIVE TO OUR WATERS AND TO OUR BAY. I ASK THAT YOU SAY NO TO IT. THANK YOU VERY MUCH FOR YOUR TIME. >> Mayor Guajardo: THANK YOU, MR. WILLIAMS. JUSTINE KNOX. JUSTINE? OH. >> HELLO, MY NAME IS JUSTINE KNOX. GOOD MORNING TO -- WELL, GOOD AFTERNOON TO THE MAYOR AND ALL YOU COMMISSIONERS. I WANT TO SPEAK ON ITEM 18 THAT'S ON THE AGENDA ABOUT THE POOL THAT IS SUPPOSED TO BE CONSTRUCTED IN OUR AREA, AND JUST WANT TO KNOW IS THIS -- DOES IT HAVE TO BE VOTED ON TO BE DONE? BECAUSE I THOUGHT WE HAD ALREADY SETTLED THAT, AND THAT WAS IN THE MANDATORY --MRS. KNO, UNFORTUNATELY WE CAN'T ANSWER QUESTIONS DURING PUBLIC COMMENT. >> OKAY. >> Mayor Guajardo: BUT WE CAN CERTAINLY HAVE SOMEONE ADDRESS YOUR -- OUTSIDE OF HERE, WE CAN HAVE STAFF -- PETER CAN HAVE ONE OF HIS STAFF MEMBERS ADDRESS ANY QUESTIONS YOU MIGHT HAVE ON THE DETAILS OF THAT ITEM. >> [OFF MIC] >> Mayor Guajardo: SHE SPOKE ON IT. SO MRS. KNOX -- PETER, CAN YOU GET SOMEONE TO SPEAK WITH MRS. KNOX? >> AND I JUST HAD A COMMENT ON IT ALSO. >> Mayor Guajardo: YOU CAN COMMENT. >> I LIVE IN THE HISTORICALLY NEIGHBORHOOD OF HILLCREST. THE POOL WAS TAKEN OUT DUE TO CONSTRUCTION OF THE HARBOR BRIDGE. IT IS MY UNDERSTANDING THAT IT'S SUPPOSED TO BE SACRIFICED AND MAYBE NOT REBUILT BECAUSE OF THE WATER CRISIS HERE. WE KNOW THAT THERE'S A WATER CRISIS HERE, BUT EVERY TIME SOMETHING IS SUPPOSED TO BE PUT INTO OUR NEIGHBORHOOD, WE'RE THE SACRIFICIAL ITEM THAT, NO, CAN'T DO IT. TO ME, IT'S LIKE -- IS THAT NEIGHBORHOOD THE ONLY PLACE THAT YOU SACRIFICE TO GET WHATEVER THE CITY NEEDS? I MEAN, I'M SURE THERE'S MANY OF YOU HERE THAT HAVE YOUR OWN PRIVATE POOLS, LIVE IN COMMUNITIES WITH POOLS. AND I JUST ASK THAT Y'ALL DO NOT SACRIFICE OUR POOL. THAT'S IT. >> Mayor Guajardo: THANK YOU, MRS. KNOX. >> UH-HUH. >> Mayor Guajardo: YOU'LL HAVE SOMETHING . >> Zanoni: TO THE QUESTION THAT DOES THE COUNCIL NEED TO VOTE ON IT. >> Mayor Guajardo: I THINK SHE JUST WANTS DETAILS OF THIS AND WHAT ARE THE DETAILS OF -- SAIRNL >> Zanoni: SURGESERGIO'S HERE. HE CAN SPEAK WITH HER. >> Mayor Guajardo: TINA BUTLER. >> I ALSO WANTED TO TALK TO AGENDA ITEM 18. >> Mayor Guajardo: YOU CAN WAIT. YES MA'AM. COUNCILMAN HERNANDEZ? >> Hernandez: YES, I JUST WANT TO MAKE A STATEMENT OF FACT. WE ARE VOTING ON THE CONTRACT, NOT WHETHER WE DO IT OR NOT. SO THIS -- IT IS GOING FORWARD, WE'RE VOTING ON THE CONTRACT. SO IT IS NOT SOMETHING THAT WE'RE DISMISSING. I UNDERSTAND WE'RE IN A WATER SITUATION; HOWEVER, YOU KNOW, RESIDENTS ONLY USE A THIRD OF THE WATER THAT WE'RE USING, SO IT'S NOT -- IT WON'T BE DETRIMENTAL TO WHAT WE'RE DOING. SO I JUST WANTED TO MAKE THAT CLEAR ON A STATEMENT OF FACT. THANK YOU. >> Mayor Guajardo: RACHAEL CABALLERO. >> RACHAEL CABALLERO, D1. LESSON LEARNED HERE, IF WE JUST GIVE PEOPLE THEIR THREE MINUTES WITHOUT THE BIG SCENES AND LETTING THEM JUST AIR THEIR GRIEVANCES, BUT THIS APPARENTLY IS A VERY DRAMATIC AND BUREAUCRATIC SYSTEM WE HAVE HERE. ONE OF THE BIGGEST THINGS THAT WE NEED TO -- THAT THE COMMUNITY NEEDS TO UNDERSTAND IS THAT TODAY $753 MILLION WORTH OF WATER PROJECTS ARE BEING PRESENTED TO THIS COUNCIL. OF THAT 753 MILLION, ZERO IS GOING TO BE GIVEN TO THE COMMUNITY, AND NONE OF THE PROJECTS ARE GOING TO ALLOW FOR THE COMMUNITY TO COME OUT OF CURTAILMENT. SO IT ALWAYS MAKES YOU WONDER THE POINT OF ALL THE DIFFERENT PROJECTS IF NONE OF THEM ARE GOING TO SUPPLY WATER TO OUR COMMUNITY AND WE HAVE TO PAY FOR THEM ALL, $753 MILLION. AND THIS DOES NOT INCLUDE SOME OF Y'ALL'S PRIZED INNER HARBOR PROJECT THAT'S STILL PROPOSE AT $1.2 BILLION. NOW, THE CITY OF CORPUS CHRISTI, THANKS TO SOME NOT FISCALLY RESPONSIBLE BUREAUCRATIC EMPLOYEES HAVE TAKEN OUT $142 MILLION WORTH OF CERTIFICATES OF OBLIGATION IN THE LAST SEVEN YEARS, OUR CURRENT DEBT IS $1.6 BILLION, AND JUST LAST YEAR ALONE WAS ADDITIONAL DEBT OF $343 MILLION. THE BIG ELEPHANT IN THIS ROOM IS SPENDING. WE DON'T HAVE THE MONEY. WE DO NOT -- THIS COMMUNITY CANNOT AFFORD THESE PROJECTS. WE HAVE BEEN EXCELLENT, THIS COMMUNITY HAS BEEN EXCELLENT, INDUSTRY PARTNERS FOR THE LAST THREE DECADES. WE HAVE BEEN GOOD PARTNERS TO INDUSTRY. TAKE A DRIVE ON THE I-37 CORRIDOR, THAT'S HOW MUCH WE'VE BEEN SUPPORTIVE OF INDUSTRY. TAKE A DRIVE ON JOE FULTON CORRIDOR, THAT'S HOW MUCH THIS COMMUNITY HAS BEEN SUPPORTIVE OF INDUSTRY. WE HAVE SUPPORTED INDUSTRY. NOW IT IS THEIR TIME TO COME TO THE TABLE WITH MONEY AND BEING ABLE TO NEGOTIATE CONTRACTS THAT ARE POSITIVE FOR NOT ONLY THEM AND THE FUTURE OF THIS COMMUNITY, BUT WITH COMMUNITY MEMBERS, TOO. WE ARE DONE WITH THE HANDOUTS TO EVERY SINGLE PERSON THAT COMES HERE. IF YOU HAVE MULTIMILLION DOLLARS INVESTORS THAT CAN'T AFFORD AN ADDITIONAL MILLION DOLLARS OR $2 MILLION FOR THEIR PROJECTS, THEY'RE IN THE LONG -- WRONG LINE OF BUSINESS, BECAUSE THEY CANNOT AFFORD -- THEY CANNOT FIGURE OUT THEIR OWN FINANCIERS AND THEY HAVE TO COME TO THE GOVERNMENT FOR A HANDOUT. SO IF WE DON'T FIGURE OUT VERY, VERY QUICKLY THAT WE CANNOT AFFORD DESAL, THIS COMMUNITY'S ABOUT TO BE BANKRUPTED. THANK YOU. >> Mayor Guajardo: THANK YOU, MRS. CABALLERO. ASHIK DAVID? >> [OFF MIC] >> Mayor Guajardo: SIR, ITEM 24 IS A BRIEFING, SO THERE IS NO PUBLIC COMMENT ON BRIEFINGS, SO THIS WOULD BE THE ONLY OPPORTUNITY. >> >> MAYOR, I JUST WANTED TO ENSURE THAT Y'ALL HAVE FOUR EXHIBITS, EACH ONE OF Y'ALL? DOES EVERYONE HAVE FOUR SHEETS? OKAY. AND BEFORE WE START, CHIEF, I APOLOGIZE THAT YOU WERE DRAGGED INTO IT. ALL I CAN SAY IS SORRY. THANKS. MAYOR COUNCILMEMBERS CITY MANAGER AND STAFF, CHIEF MARKLE, CHIEF WADE, THE MEDIA, AND MEMBERS OF THIS COMMUNITY, GOOD AFTERNOON TO YOU ALL. AT AT LEAST BY NOW I'M ASSUMING COUNCIL IS WELL AWARE OF THE BACK GROUND. >> City Secretary: SIR, AYE M SORRY TO INTERRUPT. >> SORRY ABOUT THAT, CAN YOU STOP MY TIME PLIES? AJID DAVID. I ASSUME COUNCIL IS WELL AWARE OF THE BAD ACTS THAT NEVER GOT TWO READINGS, ON APRIL 16TH, THE MAYOR WAS INFORMED. ON APRIL 19TH, A FORMAL LETTER DETAILING THOSE CONCERNS WERE SENT TO THE MAYOR AND ON APRIL 23RD, THE MAYOR WAS PUBLICLY INFORMED AGAIN. WHAT FOLLOWED IN THE BACKGROUND WAS A COVERUP INVOLVING THE DESTRUCTION OF PUBLIC RECORDS. I DO NOT BELIEVE THIS COUNCIL WAS AWARE OF IT BECAUSE HAD YOU KNOWN THE MAJORITY OF YOU WOULD HAVE INTERVENED IMMEDIATELY TO STOP IT. WHAT YOU'RE LOOKING AT IS THE HIGHLIGHTED SCREENSHOT FROM LEGISTAR, THE CITY'S OFFICIAL PUBLIC RECORDS OBTAINED THROUGH LEGAL DISCOVERY. IT SHOWS THAT STAFF ARE UNLOCKING THE FILE, DELETING THE ORDINANCE THAT HAD ALREADY BEEN PASSED, ALONG WITH ALL SUPPORTING DOCUMENTS PRESENTED TO DOCUMENTS, LEGISTAR LOGS THESE ACTIONS WITH PRECISE TIME STAMPS, DATE, HOUR, MINUTE AND SECOND, SHOWING EXACTLY WHEN THESE ACTIONS OCCURRED. NOW, COVERUPS ARE ALWAYS TO CONCEAL BAD ACTS. THERE'S NO EXCEPTIONS TO THAT. EVERY WITNESS TESTIFIED UNDER OATH THAT THE FIRST AND SECOND READINGS WERE NOT THE SAME -- WERE NOT THE SAME ORDINANCE. YOU ARE NOW SEEING WORDS ON THE SLIDE OF THE CITY'S OWN WITNESSES IN THEIR SWORN TESTIMONY TO DESCRIBE THE INCENTIVE SCHEME. THAT'S THE TOP PORTION. YOU ALSO SEE CCPD'S WRITTEN CONCLUSION. COUNCILMAN ROY LIKENED THIS TO THE ACT OF TRYING TO PUT TOOTHPASTE BACK IN THE TUBE. IN DEFENSE OF THE SCHEME, YOU MAY RECALL THAT TYPE B CHAIR CAME TO COUNCIL AND SAID THAT THE AWARD OF 2 MILLION WAS TO DUE WITH FEMA OR FLOOD COST. THE REWARD, OF COURSE, IS GOVERNED BY A SIGNED CONTRACT WHICH CLEARLY STATES WHAT THAT MONEY IS FOR. THAT IS FOR THE SIGNED CONTRACT SAID THE MONEY IS FOR. AND ONCE EXPOSED, THAT GOT DELETED AS WELL. ONCE ALL OF THESE E-MAILS AND EVERYTHING WAS DISCOVERED, THE CITY'S ATTORNEYS FILED AN APPEAL WITH THE COURT SEEKING TO STAY ALL DISCOVERY TO PREVENT THE RELEASE OF ANY MORE EVIDENCE. WE CAN ALL AGREE OVER HERE THERE IS A BROADER TRUST ISSUE. THE COMMUNITY, THE CITY, CITY STAFF AND THIS COUNCIL NEED TO BUILD TRUST WITH EACH OTHER. THE NEW TESTAMENT INSTRUCTS US TO ABSTAIN EVEN FROM THE APPEARANCE OF EVIL. I RECOGNIZE THAT MAJORITY ON THIS COUNCIL IS WORKING TOWARDS A SOLUTION. I INVITE ALL OF YOU TO COME TOGETHER TO ACKNOWLEDGE WHAT HAS OCCURRED AND WORK COLLABORATIVELY TO RESTORE TRUST WITHIN THE COMMUNITY. WHAT YOU SEE OVER THERE IS WHO WAS INVOLVED IN THIS COVERUP. YOU'LL SEE NAME OF ASSISTANT CITY MANAGER, AGENDA COORDINATOR, ET CETERA. ALL OF THIS IS AVAILABLE. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. DAVID. MONA LYTLE. >> GOOD AFTERNOON. I JUST BROUGHT YOU A FEW GOODIES, MORE TO COME. I AM HERE TO SPEAK ON FEBRUARY THE 24TH SPEAKING ON BEHALF OF HILLCREST RESIDENTS, WE ARE ASKING YOU TO PLEASE DELAY THE VOTE. >> City Secretary: EXCUSE ME, MRS. LYTLE. CAN YOU STATE YOUR NAME AND CITY? >> I'M SORRY, MONA LYTLE, I LIVE IN HILLCREST, THE HISTORICAL NEIGHBORHOOD AND COMMUNITY, IN CORPUS CHRISTI, TEXAS. AND WE'RE HERE -- I'M HERE TO ASK ON BEHALF OF HILLCREST TO PLEASE DO NOT VOTE ON FEBRUARY THE 24TH TO BRING INNER HARBOR HILLCREST BACK TO THE AGENDA. CAN WE WAIT UNTIL THE FAR FIELD SURVEY HAS BEEN COMPLETED? BECAUSE IT'S GOING TO TELL YOU, AS I'VE MENTIONED BEFORE, ENERGY HARBOR IS NOT THE PLACE. SO I WANT EVERY PROJECT THAT YOU DECIDE TO VOTE ON AND TO WORK WITH TO BE SUCCESSFUL. SO WE'RE ASKING YOU, PLEASE DO NOT VOTE YES ON FEBRUARY THE 24TH. VOTE NO. THANK YOU. >> Mayor Guajardo: THANK YOU, MRS. LYTLE. DAVID VARGA. >> DAVID VARGA, CORPUS CHRISTI, TEXAS. THIS IS PROJECT IS GOING TO BE A UNIFYING PROJECT, IT INVOLVES MANY DISTRICTS, IT INVOLVES MANY CITIES, BUT IF WE ARE TO CONTINUE TO WANT TO GROW, AND YOU WANT TO, THEN I THINK THESE THINGS NEED TO BE DONE. FIRST OF ALL, EDUCATION. ALL SCHOOL DISTRICTS IN CORPUS CHRISTI AND THE SURROUNDING AREAS THAT SUPPLY WATER TO THE WATERSHED, THAT ARE IN THE WATERSHED, THAT SUPPLY WATER TO THEM, SHOULD BE IMPLEMENTED AND THERE SHOULD BE AT LEAST 30 MINUTES A WEEK FROM THIRD GRADE TO EIGHT GRADE ON HOW TO HAVE A DROUGHT-RESISTANT AREA AND HOW TO CONSERVE AREA. SIMPLY, LIKE WE'RE IN DROUGHT NOW. MODEL BACK IN 1980, IF IT'S YELLOW, LET IT MELLOW. IF IT'S BROWN, FLUSH IT DOWN. FLUSH THE COMMODE AFTER THREE PEES INSTEAD OF ONE. THAT SAVES A LOT OF WATER. VERY SIMPLE THINGS LIKE THIS, IT'S VERY SIMPLE. IT'S NOT DIRTY, JUST CLOSE THE LID. SECOND OF ALL, ALL RESIDENTS DEPENDENT ON WATER IN MUNICIPALITIES, IN THESE CITIES IN CORPUS CHRISTI, WE NEED TO COME TOGETHER. WE NEED TO GO TO ALL THE RURAL AREAS AND ALL THE OLDER AREAS AND INSTALL ONE FLUSH GALLON TOILETS. THAT'S A SAVINGS OF 2-GALLONS PER TIME, SOMETIMES MORE, BECAUSE SOMETIMES YOU STILL HAVE FIVE, BECAUSE SOME OF THESE PLACES ARE 80, 90 YEARS OLD. THAT'S GOING TO BE VERY LABOR INTENSIVE, IT'S GOING TO BE HARD TO DO. IN THE LONG RUN, IT'S GOING TO -- WHAT I'M PROPOSING IS GOING TO TAKE THREE TO FIVE YEARS MINIMUM, BUT IT'S GOING TO BE LABOR INTENSIVE, AND IT'S GOING TO BE HARD TO DO. THIRDLY, NEW HOME RULES, NOW, THIS MAY BE GOVERNMENT OVERREACH, BUT IT NEEDS TO BE DONE: ALL NEW HOMES NEED TO HAVE AT LEAST 30 TO 40% OF THEIR LANDSCAPE XERISCAPED, PERIOD. NO QUESTIONS ASKED. SECONDLY, AT LEAST TWO NATIVE TREES NEED TO BE PLANTED IN EACH ONE, LIKE CEDAR ELM. THIRDLY ONLY DROUGHT-RESISTANT GRASSES SHOULD BE ABLE TO BE PLANTED. FOR INSTANCE, LIKE BUFFALO GRASS AND TITAN RX. WE ALSO SHOULD HAVE FOUR ONLY TANKLESS WATER SHOULD BE COMING IN. GET RID OF THE 30 AND 40-GALLON WATER HEATERS THAT WE HAVE. IT COSTS ME 38 SECONDS TO GET COLD WATER TO HOT WATER IN MY BACK BATHROOM. THAT'S A LOT OF WATER GOING TO WASTE. AND FOURTHLY, DROUGHT 2 RESTRICTIONS SHOULD OCCUR AT 40%, NOT 30%. THAT WAY WE ENSURE WE SAVE WATER. YOU HAVE MY NUMBER IF YOU'D LIKE TO DISCUSS THIS LATER ON. LIKE I SAID, IT'S GOING TO TAKE A LOT OF HARD WORK TO GET ALL THESE THINGS ORGANIZED AND BRING ALL THESE PEOPLE TOGETHER. IN THE LONG RUN, IT'S GOING TO BE BENEFICIAL TO OUR AREA, SO WE DO HAVE WATER, SINCE WE DON'T HAVE ANY NOW. THANK YOU FOR YOUR TIME. >> Mayor Guajardo: THANK YOU, MR. VARGA. ZACHARY BORNSTEIN? AND THEN REBECCA, DO WE HAVE -- ONE, TWO, THREE, FOUR... FIVE ONLINE? >> City Secretary: YES, MA'AM, THEY'RE ONLINE. >> CITY MANAGER, COUNCIL MAYOR, CITY SECRETARY, JUST FOR THE RECORD IF IT MEANS ANYTHING, COUNCILMAN BARRERA WINS THE BEST TIE OF THE BOARD FOR THIS WEEK. ZACHARY BORNSTEIN, DISTRICT ONE. I HAVE A VIDEO I'D LIKE TO PLAY. [VIDEO PLAYING.] I TOLD BOTH MY BOARD, THE PROJECT AND TYPE B, IT HAD TO BE TIED TO INFRAST INFRASTRUCTURE. >> AND WHAT IS THE REASON THAT IT HAD TO BE TIED TO INFRASTRUCTURE? >> BECAUSE IN THE TYPE B GUIDELINES THERE, IS A -- A CLAUSE THAT ALLOWS FOR THE REIMBURSEMENT OF INFRASTRUCTURE, AND, IN FACT, THAT'S ALL WE'VE EVER DONE WHEN WE LOOKED AT PROJECTS LIKE THIS, THAT IT'S TIED TO INFRASTRUCTURE. >> AND SO WHEN WOULD YOU HAVE MADE THAT STATEMENT THAT IT HAD TO BE TIED TO INFRASTRUCTURE? >> I'M SURE I WOULD HAVE SAID IT PRIOR -- PRIOR TO EVEN TO THE PROJECT, EVEN BEFORE IT WENT TO OUR BOARD. >> BEFORE THE FIRST PRESENTATION OR -- >> YES. >> PARDON? >> YES. >> SO BEFORE THE FIRST PRESENTATION TO THE REDC? >> CORRECT. >> THE REQUESTED INFORMATION. [VIDEO STOPPED.] >> NOPE. IT WAS TWO MINUTES AND 33 SECONDS. >> City Secretary: OKAY. SIR, MY UNDERSTANDING IS THE VIDEO ENDED, SO THAT'S WHAT WE HAVE. >> THANK YOU. >> City Secretary: YES, SIR. >> Mayor Guajardo: THANK YOU, MR. BORNSTEEN. AND NOW WE'LL GO TO OUR WEBEX VIDEO CONSTITUENTS. >> City Secretary: SO WE HAVE SEAN MERIT ONLINE. MR. MERIT? >> THANK YOU VERY MUCH. MAYOR, COUNCIL, CAN Y'ALL HEAR ME? >> City Secretary: YES, WE CAN. >> OKAY. RESIDENTS IN THIS CITY CAN BE -- >> City Secretary: CAN YOU STATE YOUR -- I SORRY TO INTERRUPT K YOU STATE YOUR NAME AND CITY, PLEASE. >> SEAN MERIT, DISTRICT 5. RESIDENTS IN THIS CITY CAN BE FINED UP TO $500 PER DAY FOR WATERING THEIR YARD. THEY'RE TOLD THAT THEY CAN'T WASH THEIR OWN VEHICLES IN THEIR OWN DRIVEWAY. THEY'RE BUYING $41 RAIN BARRELS FROM THE CITY JUST TO LEGALLY CORRECT RUNOFF AND KEEP GARDEN PLANTS ALIVE. FAMILIES ARE ADJUSTING THEIR LIVES BECAUSE OF THIS DROUGHT. SOME ARE SO FRUSTRATED THAT THEY'RE LEAVING, AND IN THE SAME MOMENT LEADERSHIP IS PROPOSING A $9 MILLION AQUATIC CENTER THAT WILL REQUIRE CONSTANT REFILL AND HAVE IT EVAP FROM SOUTH TEXAS HEAT. THAT IS NOT SHARED SACRIFICE THAT. IS LEADERSHIP TELLING RESIDENTS TO CONSERVE WHILE GOVERNMENT BLOATS, EXPANDS AND CONSUMES. IF WE ARE SERIOUS ABOUT WATER, THEN ACT LIKE IT. DESALINATION IS INEVITABLE. THE ONLY QUESTION, WHETHER WE BUILD IT SMARTLY OR WAIT FOR FURTHER CRISIS. WE SHOULD BE BUILDING A NEXTGEN FUTURE HOOF PROOF WATER RESILIENCE HUB, NEAR ZERO LIQUID DISCHARGE, MINERAL AND RECOVERY FROM SALT AND BRINE LIKE ISRAEL AND SAUDI ARABIA, ENERGY CONSERVE, REVENUE OFFSETS THAT REDUCE RATES FROM HOME LOANS. WATER SECURITY IS NOT ABOUT INDUSTRY, IT'S ABOUT THE HOMEOWNER WHO IS ONE FINE AWAY FROM MOVING AWAY. INSTEAD WE'RE DEBATING AN AQUATIC CENTER DURING A DROUGHT. AT THIS RATE, WE MIGHT AS WELL FILL THE AQUATIC CENTER WITH THE T SWEAT OF THOSE MOVING AWAY AND THE TEARS OF THOSE STAYING PUT. IF YOU VOTE YES, YOUR NEXT VOTE SHOULD BE TO BUILD A MENTAL ASYLUM SO YOU CAN BE THE FIRST PATIENT TO CHECK IN. THANK YOU FOR MY TIME. >> City Secretary: THANK YOU, MR. MERIT. NEXT IS JUSTIN O'NEAL. >> GOOD AFTERNOON, MAYOR, COUNCILMEN SECRETARY. JUSTIN O'NEAL, DISTRICT 5. GO AHEAD AND PLAY THE VIDEO. >> [VIDEO PLAYING.] >> AND THAT'S WHY I'M SURE A MOMENT AGO YOU SAID YOU WOULDN'T VOTE ON IT. >> CORRECT. IF I COULD VOTE. >> PARDON? >> IF I COULD VOTE, YES, I WOULDN'T VOTE ON IT. >> IF YOU COULD HAVE VOTED, YOU WOULD HAVE SAID NO TO IT OR YOU WOULD HAVE JUST NOT VOTED ON IT. >> RIGHT. I PROBABLY WOULD HAVE VOTED NO RATHER THAN ABSTAINING. >> AND THAT'S BECAUSE YOU RECOGNIZED THAT AN AFFIRMATIVE VOTE IN THIS CASE TO ALLOW THE $2 MILLION AWARD CREATES RISK OR JEOPARDY TO THE COUNCILMEN AND WOMEN WHO APPROVED IT. >> CORRECT. >> INCLUDING THE MAYOR. >> CORRECT. >> I DON'T THINK ANYBODY SHOULD GET MONEY IF YOU'RE CHEATING THE SYSTEM. >> THANK YOU. >> AFTER I INTERVIEWED PHILLIP, I DID THAT SAME EVENING, I BELIEVE, HAD A CONVERSATION WITH THE MAYOR ON THE PHONE AND COUNCILMAN PUSLEY WAS THERE EITHER IN THE ROOM OR ON A THREE-WAY CALL, I'M NOT 100% SURE. THAT WAS AFTER THE MEETING WITH THE MAYOR. I EXPLAINED TO PHILLIP THAT HE COULD BE THE ONLY ONE THAT COULD EXPLAIN WHAT HAPPENED TO THIS DOCUMENT, COULD NOT EXPLAIN IT. THERE WAS AN OBVIOUS CHANGE IN THE DOCUMENTED FROM IF WEBSITE TO THE POWERPOINT. TWO PEOPLE THAT COULD HAVE EXPLAINED IT, ONE WAS MIKE CULBERTSON AND HIS TEAM AND THE SECOND ONE WOULD BE PHILLIP RAMIREZ AND HIS TEAM. I BELIEVE WE HAD A CONVERSATION WITH MIKE CULBERTSON TO RULE HIM OUT, AND ACTUALLY ASKED FOR A COPY OF HIS POWERPOINT PRESENTATION, AND WHO CREATED IT. DID HE CREATE IT OR DID PHILLIP RAMIREZ CREATE IT? AND CULBERTSON SAID THAT THE POWERPOINT WAS CREATED BY PHILLIP RAMIREZ, SEND TO MIKE CULBERTSON WHO DID NOTHING TO CHANGE IT, AND JUST PLAISDZED IT INTO A TEMPLATE THAT HAD EDC HEADING ON IT. THAT'S WHY WE RULED OUT CULBERSON AS SOMEBODY THAT MAY BE AWARE OF OR MAY HAVE CHANGED THE DOCUMENT. AND THEN STARTED WORKING WITH PHILLIP RAMIREZ AS THE SOLE PERSON THAT WOULD KNOW, SHOULD KNOW WHAT HAPPENED TO THE DOCUMENT. >> AND WHAT YOU JUST TOLD ME IS WHAT YOU TOLD THE MAYOR? >> CORRECT. >> IN IF PHONE CALL SOON AFTER THE MEETING WITH PHILLIP? >> CORRECT. >> AND IT'S THE SAME INFORMATION YOU ALSO TOLD TO COUNCILMAN PUSLEY? >> CORRECT, IN THAT PHONE CALL THAT HE WAS ON. >> OKAY. >> YES. >> DID YOU ALSO LET THEM KNOW, PUSLEY AND THE MAYOR AT THE SAME TIME FRAME, SAME PHONE CALL, THAT YOU WERE NOT SATISFIED WITH THE EXPLANATION? >> I DID. >> OKAY. AND SO AT THAT POINT IN TIME, THEN YOU WERE STILL COMMUNE DATE KATEING TO BOTH OF THEM THAT THIS IS SOMETHING YOU CANNOT RECOMMEND? >> THAT, YES, AND THAT THEY SHOULD BE CONCERNED ABOUT IT. >> YEAH. [VIDEO STOPPED.] MR. O'NEA L, DOES THAT CONCLUDE YOUR PUBLIC COMMENT? OKAY. THAT CONCLUDES THE PUBLIC COMMENT. WE'LL MOVE TO TAYLOR JOHNSON. >> GOOD AFTERNOON, TAYLOR JOHNSON, DISTRICT 5. CAN YOU PLEASE PLAY THE VIDEO PROVIDED. >> CORRECT, YEAH. >> AND THEREFORE THE FIRST READING AND THE SECOND READING WERE NOT THE SAME. >> CORRECT. >> OKAY. AND SO GIVEN THAT -- THOSE DEFINITIONS OF THE SAME, IS IT CLEAR THAT THE FIRST READING AND SECOND READING DO NOT QUALIFY AS A -- AS THE SAME TO -- THAT WAS TO BE CONSIDERED AND VOTED UPON? >> RIGHT. WE -- I WOULD AGREE WITH THAT. >> AND, THEREFORE, DID NOT COMPLY WITH THE TWO-READING RULE IN THE CITY CHARTER. >> YES. >> OKAY. AND THEN THE SAME ORDINANCE NUMBER CAME UP FOR SECOND READING ON APRIL 23RD, RIGHT? >> UH-HUH UH-HUH, YES. >> AND YOU KNOW THAT REALLY FOR THE CCRDC PRESENTATIONS AND THE TYPE B PRESENTATIONS AND THE FIRST PRESENTATION IN FRONT OF CITY COUNCIL, ALL OF THOSE PRESENTATIONS HAD AS THE BANNER REASON FOR THE 2 MILLION WAS THE RECENT UNANTICIPATED CHANGES IN FEMA, RIGHT? >> >> RIGHT. >> OBJECTION TO FORM. >> AND YOU ALSO KNOW THEN ON THE APRIL 2024 READING, ALL OF THAT REALLY HAD BEEN REMOVED AS THE BANNER REASON FOR THE ORDINANCE, EVEN THOUGH IT HAD THE SAME ORDINANCE NUMBER, RIGHT? >> OBJECTION, FORM. >> YES, IT CHANGED. >> SO IN THAT SENSE, I MEAN, AND I UNDERSTAND IT'S STILL GOT THE NUMBER 2 MILLION AND WHO'S GETTING IT, THAT'S THE SAME RIGHT? >> CORRECT. >> BUT IN TERMS OF WHETHER SOMEBODY WOULD CHANGE THEIR VOTE ON THE CITY COUNCIL OR NOT, YOU REALLY DON'T KNOW BECAUSE IT'S AN INDEPENDENT -- IT'S A DIFFERENT REASON NOW. >> CORRECT. >> OKAY. AND SO DO YOU SEE HOW WHEN YOU CHANGE THE REASON FOR THE ORDINANCE, YOU HAVE MAYBE -- MAYBE YOU'LL GET MORE VOTES, MAYBE YOU'LL GET FEWER VOTES, YOU DON'T KNOW? >> CORRECT. >> AND THAT'S BECAUSE REASONS MATTER? >> CORRECT. >> OKAY. AND SO YOU UNDERSTAND THAT THE REASONS FOR -- THEY'RE SUPPOSED TO BE DOING -- AT THE CITY TWO READINGS ON THE SAME ORDINANCE IS BECAUSE THE SAME THING IS SUPPOSED TO BE VOTED ON TWICE, RIGHT? >> I WOULD AGREE WITH THAT, YES. >> YOU WOULD AGREE? >> YES. I AGREE. >> AND HERE, BECAUSE OF HOW THEY'VE CHANGED THE REASON BEHIND IT, WE'RE NOT GETTING REALLY TWO VOTES ON THE SAME THING? >> THAT'S CORRECT. >> OKAY. STRUCTURE FEATURE THAT WAS PART OF THE FIRST READING IN FRONT OF THE CITY COUNCIL WAS REMOVED, THE FALSE SLIDE, THE FALSE NARRATIVE WAS CHANGED BY THE TIME YOU GET TO THE SECOND MEETING. >> THE LANGUAGE OF THE SECOND READING WAS ALTERED. [VIDEO STOPPED.] >> City Secretary: OKAY. MR. JOHNSON, DOES THAT CONCLUDE YOUR PUBLIC COMMENT? >> THAT IS ALL, THANK YOU. >> City Secretary: OKAY. THANK YOU. NEXT IS TRACY -- FORGIVE ME FOR MISPRONOUNCING YOUR NAME, JUNIK. >> GOOD AFTERNOON. TRACY JANK, CORPUS CHRISTI, AND I'D ASK THAT THE VIDEO I SUBMITTED BE PLAYED AT THIS TIME. >> SO IF I GIVE YOU THIS DEFINITION THAT FORGE, LIKE FORGING A DOCUMENT, OR WRITING, THAT FORGE MEANS TO ALTER, MAKE COMPLETE, EXECUTE OR AWE TENT KATE ANY WRITING, THAT HAPPENED RIGHT, SO FAR? >> YES. >> SO THAT IT PURPORTS TO BE THE ACT OF ANOTHER, LIKE FEMA, THAT HAPPENED, CORRECT? >> YES. >> IN THIS CASE? >> YES. >> WHO DID NOT AUTHORIZE IT, AND WE TALKED ABOUT FEMA DIDN'T AUTHORIZE IT, RIGHT? >> YES. >> THAT HAPPENED IN THIS CASE? >> YES. >> IF THAT'S A DEFINITION OF FORGE, THEN THE FACTS OF THIS CASE MEET THAT DEFINITION? >> YES. YES. >> I'M GOING TO GIVE YOU ANOTHER DEFINITION OF FORGE. THAT FORGE MEANS TO BE A COPY, TO SAY, HEY, THIS IS A COPY OF AN ORIGINAL, WHEN, IN FACT, NO SUCH ORIGINAL, LIKE WE SEE IN THIS SLIDE, EXISTS. DO YOU UNDERSTAND? >> SAY THAT AGAIN. >> IF I PURPORT TO, HEY, THIS IS WHAT IT LOOKS LIKE, AND NO SUCH ORIGINAL EXISTS THAT LOOKS LIKE THAT -- >> YES. >> -- THEN THAT'S A FORGERY, ACCORDING TO WHAT I JUST READ. I THINK. BUT I WANT TO SAY IT AGAIN. YOU UNDERSTAND WHERE I'M GOING? >> YES. >> I'M GIVING YOU A SECOND DEFINITION OF FORGE. FORGE MEANS TO BE A COPY OF AN ORIGINAL WHEN NO SUCH ORIGINAL EXISTED. DO YOU UNDERSTAND THE DEFINITION? >> YES. >> AND WE HAVE THAT IN THIS CASE? >> YES. >> OKAY. THOSE ARE TWO DIFFERENT DEFINITIONS, AND BOTH OF WHICH YOU HAVE AGREED THOSE FACTS ARE IN THIS CASE TO MEET THAT DEFINITION OF FORGE? >> YES. >> OKAY. >> THOSE ARE TWO DIFFERENT DEFINITIONS AND BOTH OF WHICH YOU HAVE AGREED THOSE FACTS ARE IN THIS CASE TO MEET THAT DEFINITION OF FORGE? >> YES. >> OKAY. DID YOU HEAR AND UNDERSTAND HER TESTIMONY? >> YES, I DID. I DON'T KNOW IF I COMPLETELY UNDERSTAND IT, BUT I HEARD -- YEAH. THE TWO DIFFERENT DEFINITIONS, IS THAT -- >> YES, SIR. >> YEAH. >> AND THEN I ALSO SHOWED YOU MY SCREEN, WHICH HAD THE ACTUAL STATUTE LANGUAGE AS I WAS READING ALONG, SO YOU GOT TO SEE IT, TOO? >> YES. >> AND SHE OBVIOUSLY TESTIFIED THAT WHAT OCCURRED IN HER VIEW HERE MET THE DEFINITION, THE PENAL CODE DEFINITION OF FORGERY RIGHT? >> CORRECT. >> DO YOU AGREE WITH HER? >> I AGREE WITH HER. >> YEAH. [VIDEO STOPPED.] >> City Secretary: DOES THAT CONCLUDE YOUR PUBLIC COMMENT? >> YES. >> City Secretary: THANK YOU VERY MUCH. NEXT IS MISHI GEORGE. >> MAYOR, CITY COUNCIL, CITY MANAGER AND STAFF AND MEMBERS OF THE COMMUNITY, GOOD AFTERNOON. MISHI GEORGE, DISTRICT 2. CAN YOU PLEASE PLAY MY VIDEO. >> [VIDEO STOPPED.] AGAIN, NO ONE HAS SAID THAT ANY DOCUMENT WAS FRAUD. NO ONE. NO ONE. NO ONE. >> IN LAST WEEK'S COUNCIL MEETING, I HAD RAISED SOME VERY SERIOUS CONCERNS REGARDING A FEDERAL DOCUMENT THAT SEEMED TAMPERED, ALTERED, OR EDITED FROM ITS ORIGINAL SOURCE. THE ONLY RESPONSE I RECEIVED, I'M QUOTING, THAT DOCUMENT WENT FROM ONE XEROX MACHINE TO ANOTHER CAUSING SOME VERY SPECIFIC INFORMATION TO DISAPPEAR. THIS IS THE ORIGINAL DOCUMENT THAT YOU HAVE ON THE SCREEN. LET ME SHOW YOU HOW IT'S DONE. THIS IS THE ORIGINAL DOCUMENT THAT IS ON FEMA WEBSITE TODAY. THIS WAS THE ONLY PRESENTATION THAT EDC HAD IN FRONT OF COUNCIL ON FEBRUARY 20TH. YOU SEE THE RED CIRCLE OVER THERE, THAT'S WHERE THE MISSING INFORMATION WAS. THIS IS HOW IT'S DONE. YOU JUST PHOTOSHOP IT. IT'S THAT SIMPLE. THERE IS NO USER OF A XEROX MACHINE OVER HERE. THIS IS JUST DAWLED ELECTRONICALLY ALTERING A FEDERAL DOCUMENT. >> AND SO UNTIL THAT I'M NOT GIVING ANY RECOMMENDATION. I'M PUTTING IT ON THE AGENDA, I WAS ASKED TO, SO YOU CAN CONSIDER IT. YOU HAVE TO COME UP WITH YOUR OWN RECOMMENDATION. >> GOT IT. BUT YOU DID -- YOU DID LET THE CITY COUNCIL KNOW THAT THERE WERE -- THERE WERE SOME -- YOU KNOW, SOME IMPROPER INFORMATION, SOME TAMPERING AND ALL THAT, SO YOU LET THEM KNOW? >> I LET THEM KNOW. WE'RE GOING TO LET THEM KNOW AGAIN TOMORROW IN EXECUTIVE SESSION. I ALREADY HAVE AN EXECUTIVE SEX POSTED. >> AND THEN YOU GO ON -- YOU SAID THAT HOWEVER BECAUSE THE COUNCIL WANTED THIS ON THE AGENDA FOR THEM TO CONSIDER, IT'S ON. AND SO MY QUESTION TO YOU IS WHEN YOU ARE SAYING IN THAT CONVERSATION WITH AJID THAT THE COUNCIL WANTED IT ON THE AGENDA, WHO ARE YOU REFERRING TO? >> YEAH, I'M NOT FOR CERTAIN, BUT I KNOW THE MAYOR AND I THINK PUSLEY HAD -- WERE OKAY WITH THE ISSUE AT HAND OF THE -- OF NOT HAVING AN EXPLANATION AND WANTED TO PURSUE -- PROCEED WITH HAVING IT ON. >> BOTH OF THEM, YOU HAD INFORMED THEM THAT THERE HAD BEEN THIS ALTERING OR TAMPERING OR FORGING OF A FEDERAL DOCUMENT, BUT THEY WERE STILL WILLING TO SUPPORT IT RIGHT? >> CORRECT. >> I THINK WHAT YOU'RE TELLING ME IS DURING THAT TIME FRAME, YOU WERE NOT IN THE LOOP AS TO WHAT THE FINDINGS WERE FOR THE INVESTIGATION? >> CORRECT. >> AND SO, THEREFORE, YOU HAD NO KNOWLEDGE THAT IT WAS SOMETHING ILLEGAL IN THE PROCESS THAT YOU WERE VOTING ON? >> RIGHT. THERE WAS -- >> OKAY. >> RIGHT. >> OKAY. [VIDEO STOPPED.] >> City Secretary: DOES THAT CONCLUDE YOUR COMMENT? >> YES. THANK YOU. >> City Secretary: THANK YOU. OKAY. MAYOR, THAT CONCLUDES THE PUBLIC COMMENT PERIOD. >> Mayor Guajardo: THANK YOU, REBECCA. COUNCILMAN ROY? >> Roy: I JUST WANT TO MAKE A STATEMENT OF FACT TO THE PUBLIC. BEING A COUNCILMEMBER THAT WAS ON THE COUNCIL AND PART OF THE DEPOSITION PROCESS AND PROBABLY IN THE FUTURE GOING TO BE STILL PART OF THE DEPOSITION PROCESS, I HAVE REMOVED MYSELF FROM PUBLIC COMMENT OR ANYTHING RELATED TO THIS BECAUSE, NUMBER ONE, I WANT TO MAKE SURE THAT I CAN RECALL TO THE BEST OF MY KNOWLEDGE WHAT HAPPENED. I'M COOPERATING ACTUALLY WITH BOTH SIDES. SO I JUST WANTED TO KNOW THAT -- I THINK RESPECT IS IMPORTANT, AND I'M NOT TRYING TO DO THAT TO DISRESPECT ANYONE, BUT I'M SIMPLY TRYING TO MAINTAIN THE BEST OF MY ABILITY AND UNDERSTANDING WHAT HAPPENED BASED ON MY VIEWPOINT. SO, AGAIN, I THINK PUBLIC COMMENT'S IMPORTANT, BUT MY GETTING UP IS NOT DISRESPECTING ANY MEMBERS, AND IF YOU FELT THAT WAY, I APOLOGIZE. THANK YOU. >> Mayor Guajardo: OKAY. THANK YOU, COUNCILMAN. SO THAT CONCLUDES OUR PUBLIC COMMENT PERIOD, AND WE ARE GOING TO GO BACK TO -- IS MRS. BUXTON -- YES. GO BACK TO MRS. BUXTON, WE HAD THREE COUNCILMEMBERS -- >> MAYOR, I HAVE A COMMENT -- [OFF MIC] >> Mayor Guajardo: A STATEMENT OF FACT. >> Vaughn: I'D LIKE CLARIFICATION ON WHY THE GENTLEMAN WAS THROWN OUT. I NORMALLY THINK THAT WHEN THEY THROW THEM OUT, THAT'S FINE. BUT I DON'T -- I DIDN'T SEE WHAT HE DID THAT WAS SO BAD. I JUST DON'T GET THAT. SOMETIMES YOU HAVE TO VENT AND SAY HOW YOU FEEL, AND THEN IT DOESN'T ESCALATE. HE WAS NOT UPSET UNTIL HE WAS APPROACHED. HE GOT A LITTLE LOUD, BUT HE WASN'T UPSET UNTIL HE WAS APPROACHED. AND YOU ASKED H IMFOR HIS NAME. HE DIDN'T WANT TO GIVE HIS NAME. YOU ALREADY HAD HIS NAME. WE ASK FOR THE NAME WHEN THEY SIGN IT. I DO NOT UNDERSTAND THAT, AND WE DON'T EVEN KNOW IF THAT'S WHO THEY ARE WHEN THEY COME UP HERE. WE DON'T KNOW IF SUZIE'S SUZIE. I'D JUST LIKE CLARIFICATION ON THE REASON YOU THREW HIM OUT. I'M ASKING, MR. RISLEY, WHY DID Y'ALL STOP HIM. >> Risley: I DIDN'T THROW HIM OUT. >> Vaughn: YOU DIDN'T THROW HIM OUT, BUT Y'ALL WERE TELLING HIM TO GO. I MEAN, I WAS WATCHING MOTIONS HERE FOR THE POLICE TO GET HIM. I'M TRYING TO FIGURE OUT WHAT -- WHY Y'ALL DID THAT. >> Risley: WE OBJECTED TO HIS VIOLATION OF THE RULES BY THE USE OF PROFANITY. THE CITY COUNCIL HAS PASSED PROHIBITION ON THE USE OF PROFANITY AND THEN HE STARTED ADDRESSING PERSONS OTHER THAN THE CITY COUNCIL DURING PUBLIC COMMENT HE'S SUPPOSED TO ADDRESS ONLY THE CITY COUNCIL. >> Vaughn: OKAY. I THINK THERE'S A WHOLE BUNCH OF PEOPLE GUILTY OF THAT AND THERE'S PEOPLE GUILTY OF PROFANITY TOO. MAYBE WE NEED TO LOOK ANOTHER OUR RULES IF THEY'RE THIS STRICT -- PEOPLE ESCALATE DOING THINGS WHEN THEY GET UPSET LIKE THIS. I THINK HE WANTED TO BE HEARD FT I DON'T THINK HE WAS HARMING ANYBODY. THAT'S JUST MY OPINION. THANK YOU. >> Mayor Guajardo: YES. STATEMENT OF FACT? GO AHEAD. >> Paxson: I AGREE WITH COUNCILWOMAN VAUGHN. I THINK THAT THERE -- WE SEE THIS COMING UP QUITE OFTEN. THIS IS AN ARENA FOR THE PUBLIC TO BE ABLE TO CONTACT THEIR ELECTED OFFICIALS, PERHAPS THERE'S SOMETHING WE CAN DO TO EVALUATE THIS PROCESS. >> Zanoni: ARE YOU TALKING TO ME IMOM? >> Paxson: YES, SIR. >> Zanoni: IT'S THE COUNCIL'S RULES BUT WE CAN WORK WITH THE COUNCIL TO REVISIT THEM. >> Paxson: THANK YOU. >> Mayor Guajardo: GO AHEAD. >> Cantu: MILES, HE SAID HE'S WITH THE CITY OF CORPUS CHRISTI. CAN HE SUE US AND ARE WE GOING TO PAY A LOT OF MONEY. >> Risley: NO, WE ARE A LIMITED PUBLIC FORUM. >> Cantu: OKAY. SO HE CAN'T SUE US? >> Risley: ANYBODY CAN SUE YOU FOR ANYTHING. >> Cantu: OKAY. ARE WE GOING TO GIVE HIM MONEY? BECAUSE I KNOW WE GIVE OUT MONEY JUST LIKE CANDY. ARE WE GOING TO GIVE HIM MONEY? BECAUSE IF WE ARE, WE NEED TO LET HIM SPEAK NEXT TIME. >> Risley: ACTUALLY, WE DON'T GIVE OUT MONEY LIKE CANDY. >> Cantu: YES, WE DO. >> Cantu: IT'S A SIMPLE QUESTION, YES OR NO. CAN HE SUE US. >> Risley: YES, HE CAN SUE YOU. >> Cantu: AND CAN WE GIVE HIM MONEY FOR VIOLATING HIS -- HIS RIGHTS? >> Risley: YOUR DECISION TO SETTLE ANY LAWSUIT THAT MIGHT BE MADE IS YOUR DECISION. I MEAN, BASED ON AN ANALYSIS OF THE COST OF DEFENDING THE LAWSUIT, LIKELY RISK OF LOSS, JUST LIKE ANY PERSON CAN SUE YOU FOR ANYTHING. >> Cantu: ONE LAST QUESTION. IT'S A YES OR NO QUESTION. ARE WE VIOLATING HIS RIGHTS? >> Risley: THESE -- THE CITY COUNCIL. >> Cantu: YES OR NO. ARE WE VIOLATING HIS RIGHTS, YES OR NO. >> Risley: IT'S NOT SUSCEPTIBLE WITH A YES OR NO. >> Cantu: PETER, YOU NEED TO GET WITH YOUR CITY ATTORNEY, HE CAN NEVER ANSWER YES OR NO. I DON'T WANT TO HEAR I DON'T KNOW THIS. IT'S EITHER YES OR NO. I'M ASKING YOU A DIRECT QUESTION, YES OR NO. >> Risley: THAT'S NOT A SUSCEPTIBLE TO A YES OR NO ANSWER. >> Cantu: THANK YOU. >> Risley: I'D LIKE TO CONTINUE MAYOR. >> Mayor Guajardo: GO AHEAD. >> Risley: THE CITY COUNCIL HAS A LIMITED PUBLIC FORUM. WHEN THERE'S A LIMITED PUBLIC FORUM, THE CITY COUNCIL HAS THE AUTHORITY TO ESTABLISH RULES. >> Mayor Guajardo: RIGHT. >> Risley: ONE OF THOSE RULES IS A RULE AGAINST PROFANITY. >> Mayor Guajardo: RIGHT. >> Risley: AND WE'VE BEEN ASKED TO BRING UP THE VIOLATIONS OF THOSE RULES, AND WE'VE DONE SO WHEN THOSE VIOLATIONS WERE MADE. THE CITY COUNCIL HAS THE AUTHORITY TO REPEAL OR MODIFIED THOSE RULES, IF IT WISHES. SO THAT'S -- THE CITY COUNCIL HAS THAT AUTHORITY. >> Mayor Guajardo: RIGHT. THANK YOU, MILES. MRS. BUX SON? WE'RE GOING TO GO BACK TO ITEM NUMBER 9, AND WE HAD MRS. CAMPOS, YOU WERE UP. YOU HAD A QUESTION ON -- THIS IS THE RESOLUTION AND SUPPORT OF THE PROPOSED 9% LOW-INCOME HOUSING TAX CREDITS. MRS. CAMPOS? >> Campos: OH, HOLD ON. ALL RIGHT. OKAY. SO BACK TO BUSINESS. I JUST WANTED TO THANK THE DEVELOPER FOR NOT GIVING UP ON THIS PROJECT AND I STILL WANT TO CHALLENGE THE DEVELOPER BECAUSE THIS WAS AT ONE TIME A LOW HOUSING RESIDENTS PLACE, THE GULF VILLA, AND SO AS MUCH AS I -- I, YOU KNOW, APPRECIATE THE -- YOU KNOW, HAVING THE SUGGESTION OF HAVING THE GROCERY STORES AND SO FORTH, I STILL FEEL THAT -- I THINK WE NEED TO GO -- YOU KNOW, TO MAKE SURE THAT WE ARE GETTING MORE PEOPLE, YOU KNOW, MOVED INTO THIS AREA. AND I DO APPRECIATE THAT IT REALLY HAS BECOME A MIXED AREA, A MIXED INCOME. AND WHAT I HAD ASKED YOU BEFORE, JENNIFER, IS SO THAT WE COULD EMPHASIZE OR LET THE PUBLIC KNOW WHAT KIND OF INCOME WE'RE TALKING ABOUT, JUST IN DOLLARS AND CENTS, WHAT KIND OF -- AND THAT'S WHAT I HAD ASKED YOU, LIKE COULD YOU LET THE PUBLIC KNOW HOW MUCH THEY WOULD BE -- THEY WOULD HAVE TO BE MAKING IN ORDER TO AFFORD THESE APARTMENTS? >> YES, MA'AM. SO THE -- WHAT WE WOULD CALL THE 60% AREA MEDIAN INCOME LIMITS, A SENIOR, ONE-PERSON SENIOR HOUSEHOLD, THEIR INCOME WOULD BE ABOUT $35,000 A YEAR. >> Campos: OKAY. >> FOR, SAY, IF THIS WERE PALMS AT GALAHAR AND IT WAS FAMILY AT FOUR MEMBERS, THAT SAME AREA MEDIAN WOULD BE ABOUT $50,000. YOU DROP THAT DOWN TO THE 30%, YOU'RE LOOKING AT 17,000. >> Campos: OUT OF THOSE, ONLY 30% DID YOU SAY ARE -- OR ABOUT HOW MANY APARTMENTS WOULD THAT COME OUT TO? >> SO IT VARIES BY APARTMENT BUILDING AND COMPLEX. SO, FOR EXAMPLE, ON THE 30% UNITS FOR SEE GULF VILLAS, THERE WERE ONE, TWO -- SIX. THERE WERE SIX UNITS AT SEA GULF VILLAS AT 30% AMI. AND THERE WERE SEVEN -- EIGHT AT PALMS AT GALAHAR. AND THEN THE NUMBER OF UNITS INCREASES AS THE UNITS GO UP, BECAUSE THAT'S HOW THE RENTAL INCOME WORKS TO PAY THE BILLS. >> Campos: OKAY. AND, AGAIN, HOW IS IT THAT WE CAN TRY TO INCREASE THE 30% AMI -- I MEAN, FOR PEOPLE BECAUSE THAT'S THE POPULATION THAT WE REALLY ARE NEEDING MORE HELP. SO WHAT IS IT THAT THE CITY COULD DO TO HELP THESE TYPES OF PROJECTS, OR MAYBE EVEN THIS PROJECT? >> SO MY RECOMMENDATION WOULD BE TO -- IS WHEN THE DEVELOPER COMES TO THE CITY FOR ASSISTANCE WITH THE CITY OR CITY-RELATED FUNDING SOURCES DEDICATED TO AFFORDABLE HOUSING, WE LOOK AT THEIR NUMBERS AND WE CAN SAY, YOU HAVE X NUMBER OF UNITS AT 60% AREA MEDIAN INCOME AND Y NUMBERS AT 30% AREA MEDIAN INCOME HOW CAN WE TAKE SOME AT 60 AND MAKE THEM FOR PEOPLE AT 30, WHAT WOULD THAT COST IN ADDITIONAL SUBSIDY? BECAUSE FOR EVERY UNIT YOU DO THAT FOR, YOU HAVE TO BUY DOWN THE COST OF THEIR DEBT BY THE SAME AMOUNT THAT YOU'RE NOT COLLECTING IN RENT. >> Campos: OKAY. >> BUT THEY'RE THE ONES THAT WOULD HAVE TO TELL US WHAT THAT NUMBER IS. AND WE CAN HAVE THAT CONVERSATION WHEN THEY MAKE A SUBSIDY REQUEST. >> Campos: OKAY. SO THAT'S WHAT I'M LOOKING FOR. BECAUSE, AGAIN, WE ARE NOT ADDRESSING THAT POPULATION, AND WE KNOW THAT THEY'RE -- YOU KNOW, WE NEED HOUSING FOR THEM. SO, AGAIN, I WANT TO CHALLENGE US AND CHALLENGE THE DEVELOPER TO PRESENT THOSE POSSIBILITIES IN THE FUTURE, SO, AGAIN, THANK YOU FOR LETTING THE REST OF THE COMMUNITY KNOW WHAT KIND OF AMOUNTS WE'RE LOOKING AT AND WHAT IS IT THAT THEY WOULD HAVE TO COME UP WITH TO AFFORD THESE APARTMENTS. SO THANK YOU. >> YES, MA'AM. COUNCILMA N SCOTT? >> Scott: I DIDN'T DO ENOUGH TO THANK YOU FOR YOUR INTEREST HERE. THANK YOU FOR -- BY THE WAY, WELCOME TO OUR HOUSE. NUMBER ONE, EVEN PEOPLE DIDN'T AGREE WITH THE CONCEPT SAY YOU'RE FANTASTIC, RIGHT, WHICH IS A T COMPLIMENT, WHICH EVEN WHEN PEOPLE DON'T AGREE WITH YOU, THEY'RE RESPECTED AND THEY DO WHAT THEY SAY. I DON'T KNOW YOU, I'VE NEVER MET YOU, BUT YOU'VE SEEN WHAT YOU'VE DONE WHEN YOU REBUILT AND IT LOOKS GREAT. I THINK THERE'S NOTHING BUT GOOD STUFF THERE. NUMBER TWO, I THINK THE COUNCILMEMBER'S RIGHT, VACANT'S BAD. WE DON'T WANT VACANT BUILDINGS IF WE CAN AFFORD IT. AND NUMBER THREE, PLEASE GO BEAT VICTORIA, GO GET THAT PROJECT. THANK YOU. COUNCILWO MAN PAXSON? >> Paxson: THANK YOU, MAYOR. I JUST HAD THE -- MY KEY CONCERN WITH THE PROJECT HERE IS IN HEARING THE QUESTIONS ANSWERED EARLIER FROM THE DEVELOPER, UNLESS I MISTOOK SOMETHING, IT SOUNDS LIKE THERE'S -- THE PARKING IS STILL A GAP. I THINK THAT IT -- AND I COULD BE MISTAKEN, PERHAPS YOU CAN CLARIFY, THAT THE PARKING THAT IS IN THIS CONCEPT IS FOR MARKET RATE UNITS AND THERE'S GOING TO BE A GAP -- >> I WOULD SAY WE DON'T HAVE ENOUGH INFORMATION UNTIL THEY COME UP WITH A PARKING PLAN AND DETERMINE HOW MANY PARKING SPOTS THEY ACTUALLY NEED BASED ON WHO THEIR MARKET IS GOING TO BE, AND THEN WE'LL WORK WITH DEVELOPMENT SERVICES. IN THE LAST COUPLE OF YEARS, WE THE CITY HAVE PROVIDED PARKING VARIANCES, IF NECESSARY, DOWNTOWN PARKING'S A LITTLE DIFFERENT, WHEN IT'S A SENIOR AFFORDABLE HOUSING. I DON'T THINK WE HAVE ENOUGH INFORMATION TO SAY AT THIS TIME. >> Paxson: OKAY. >> WE'RE NOT FAR ENOUGH ALONG IN THE DEVELOPMENT PROCESS. >> Paxson: THAT'S VERY IMPORTANT TO ME IS THAT CERTAINLY SOME OF OUR COMMUNITY MEMBERS WHO NEED THAT HAVE ACCESS TO IT. DOWNTOWN IS A SPOT THAT'S VERY DIFFICULT TO FIND PARKING ON ANY GIVEN DAY, AND SO TO ME IT WOULD BE VERY HIGH PRIORITY TO INSURE THAT PARKING HAS BEEN AMPLY ADDRESSED. >> AND I THINK EVERYBODY RECOGNIZES THAT IT HAS TO BE ADDRESSED. I WOULD RECOMMEND THAT WE ADDRESS IT AS WE GET MORE INFORMATION WHEN IT COMES BACK PROBABLY TO BE AMENDED FOR THE SCOPE OF WORK FOR THE TIRZ TO AMEND THE UNITS, AND IF IT COMES BACK FOR ANY SORT OF AFFORDABLE HOUSING DOLLARS, THAT WE TRY AND GET INTO IT AT THAT POINT. AND THEN I THINK WE'LL HAVE MORE INFORMATION TO ADDRESS IT. WE JUST DON'T HAVE AN ANSWER TODAY ON THIS NUMBER OF SPOTS FOR THESE PEOPLE. >> Paxson: SO WE CAN MAKE SURE TO GET THAT REPORT IN THERE WHEN WE COME BACK? >> WHEN WE COME BACK. >> Paxson: OKAY. THANK YOU VERY MUCH. >> YES, MA'AM. COUNCILMA N BARRERA? >> Barrera: THANK YOU, MAYOR. THANK YOU SO MUCH FOR BRINGING THESE OPPORTUNITIES FOR US. I REALLY COMMEND YOU ON THE PROJECT THAT YOU DID THAT'S RIGHT THERE OFF OF -- GOSH, NOT SHORELINE, IT'S THE ONE OVER. IT'S ONE OF THE OLDEST BUILDINGS THAT WE'VE HAD, AN YOU'VE REALLY RENOVATED THAT. I KNOW WE'VE HAD CHALLENGES. YES EXACTLY. THE OTHER ONE, YOU KNOW, I -- I CAN ACKNOWLEDGE CONCERNS ABOUT A GROCERY STORE, BUT I WOULD ARGUE THAT THE PROJECT THAT IS ON KA RAN CUE WA -- I THINK THAT'S T-2110. THERE'S LIMITED TO A GROCERY STORE THERE AND I THINK THE OTHER PROJECT THAT'S NUTTER THER DOWN. >> ON BUFORD. >> Barrera: ON BUFORD IS ALSO SOMEWHAT LIMITED WITH REGARD TO A GROCERY STORE, AND THOSE HAVE BEEN ABLE TO THRIVE AND THEY'VE REALLY TAKEN A BLIGHTED AREA AND IMPROVED UPON IT. AND WAS ECHOED EARLIER BEFORE, YOU KNOW, IT TAKES AWAY THE -- WHAT IS IT, THE CHALLENGE THAT WE'RE HAVING WITH THE VACANT BUILDING THAT WE'VE HAD FOR QUITE SOME TIME. AND MIND YOU, THE ONES THAT MOVED OVER THERE -- THAT ONE PROJECT THEY MOVED, IT WAS JUST -- THIS CERTAIN GROUP OF PEOPLE, AND SO THEY'VE BEEN ABLE TO DEAL WITH IT. SO I JUST WANT TO SAY, YEAH, I UNDERSTAND THE CONSTERNATION IS, YOU KNOW, PARTICULARLY BECAUSE DOWNTOWN, BUT, YOU KNOW, ONCE AGAIN, THAT OTHER PROJECT DOWN CARANCAHUA, IT'S STILL WALKING DISTANCE. I THINK GETTING AWAY FROM THE BLIGHT AND THE VACANT BUILDINGS IS MUCH APPRECIATED. THANK YOU FOR TRYING TO GET CREATED SO WE CAN GET SOMETHING THAT DOWNTOWN ESTABLISHMENTS CAN FEEL COMFORTABLE WITH. I SUPPORT THIS. >> THANK YOU. >> Mayor Guajardo: I THINK THOUGH'S ALL THE QUESTIONS. I WILL ENTERTAIN A MOTION. >> Roy: I'D LIKE TO MAKE A MOTION. >> SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. AND THE NEXT ITEM WAS PULLED WAS 10. >> Barrera: I'M JUST GOING TO REMOVE MYSELF. >> Mayor Guajardo: THIS IS FOR COUNCILMAN BARRERA ABSTAINING. I'LL ENTERTAIN A MOTION TO APPROVE ITEM NUMBER 10. OKAY. WE HAVE A MOTION. >> SECOND. >> Mayor Guajardo: WE HAVE A SECOND. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. OUR NEXT ITEM PULLED WAS ITEM 12 AND THAT IS A RESOLUTION SUPPORTING THE CORPUS CHRISTI ARMY DEPOT AND URGING CONGRESSIONAL AND DEPARTMENT OF WAR SUPPORT FOR ITS CONTINUED OPERATIONS AND GROWTH. MR. SCRA BAR CHICK. >> THANK YOU, MAYOR AND COUNCIL. HERE TODAY ON AN IMPORTANT ISSUE AND FOLLOW-UP FROM SOME OF THE ACTIVITIES FROM THE SOUTH TEXAS MILITARY TASK FORCE, AND BEFORE I GO TOO MUCH FURTHER, I DO WANT TO RECOGNIZE SEVERAL OF THE TASK FORCE MEMBERS ARE HERE WITH US TODAY. I THINK IN THE AUSTIN WE HAVE CRESTEN COOK, OUR EXECUTIVE DIRECTOR, ALAN WILSON, OUR CHAIR AND SEVERAL OF THE BOARD MEMBERS OF THE SOUTH TEXAS MILITARY TASK FORCE. SO OVER THE PAST SEVERAL YEARS THERE HAVE BEEN EFFORTS TO ADVOCATE IN CONGRESS ABOUT THE WORKLOAD AT THE CORPUS CHRISTI ARMY DEPOT. AND I BELIEVE AT THE END OF JANUARY, I THINK IT WAS THE 29TH OR 30TH, IGR SENT A MEMO TO COUNCIL WITH A RECENT ARTICLE THAT HAD BEEN PUBLISHED ABOUT THE INCENTIVES AND THE FORCES THAT ACT ON THE WORKLOAD AT THE CORPUS CHRISTI ARMY DEPOT AND THE IMPORTANCE IN MAINTAINING AND PROTECTING THAT, AND HOW WE MIGHT INFLUENCE THAT. SO PRIOR TO THIS, THE CITY'S FEDERAL LEGISLATIVE AGENDA HAD INCLUDED LANGUAGE ON THE 50/50 RULE WHICH MR. COOK SPOKE ABOUT DURING HIS PUBLIC COMMENT. THE 50/50 RULE, IN PART, IS WHAT KEEPS A STEADY AND CONSISTENT WORKLOAD AT THE CORPUS CHRISTI ARMY DEPOT BY MAKING SURE WITH THAT WORKLOAD THAT WE KEEP A STEADY WORKFORCE THERE, IF YOU'RE FOLLOWING ME. BECAUSE THOSE ARTISANS TAKE A NUMBER OF YEARS TO GET UP TO THAT SKILLED LABOR THAT WE WANT TO MAINTAIN. AND WHY IS THAT IMPORTANT FOR THE MILITARY? IT IS AN IMPORTANT PIECE OF NATIONAL SECURITY THAT THE MILITARY HAVE ITS OWN ORGANIC ABILITY TO MAINTAIN THE EQUIPMENT THAT THEY UTILIZE AND PROVIDE TO THE WAR FIGHTER. IT'S ALSO IMPORTANT, OBVIOUSLY, TO THE COASTAL BEND FOR THE JOBS THAT IT PROVIDES TO OUR REGION. AND SO OVER THE PAST SEVERAL YEARS WITH EXTERNAL FORCES, THINGS LIKE FEWER BLACK HAWKS USED IN OVERSEAS WARS AND HERE RECENTLY THE ARMY TRANSFORMATION INITIATIVE, THE ARMY IS SHIFTING ITS PORTFOLIO OF AVIATION. BUT AS MR. COOK TALKED ABOUT DURING HIS PUBLIC COMMENT, WE KNOW THAT IN TERMS OF ALL OF THE HELICOPTERS THAT CAN BE MAINTAINED BY THE ARMY, WE'RE CONFIDENT THAT FAR LESS THAN 50% ARE BEING MAINTAINED AT CORPUS CHRISTI ARMY DEPOT. SO THE RESOLUTION IN FRONT OF COUNCIL TODAY EXPANDS ON THE LANGUAGE IN OUR LEGISLATIVE AGENDA TO GO PAST THE 50/50 RULE AND TALK IN PARTICULAR ABOUT A FEW THINGS THAT WE WOULD LIKE TO SEE I FIRST THE MILITARY ADDRESS, WHICH IS FIRST AND FOREMOST THE WORKLOAD AND THE CONTRACTS THAT EXIST FOR HELICOPTER WORK TODAY. AND THEN SECONDARILY, SEVERAL AMENDMENTS THAT WERE ACTUALLY INTRODUCED BY CONGRESSMAN CLOUD LAST YEAR THAT WORKED THEIR WAY AND WERE APPROVED THROUGH THE FULL U.S. HOUSE OF REPRESENTATIVES AS A PART OF THE NATIONAL DEFENSE AUTHORIZATION ACT, AND UNFORTUNATELY WERE NOT INCLUDED IN THE FINAL VERSION OF THE BILL THAT WAS SIGNED. AND SO WHEN THE TASK FORCE AND THE EXECUTIVE COMMITTEE TRAVELED TO WASHINGTON, D.C. SEVERAL WEEKS AGO, WE MET WITH OUR C CONGRESSIONAL DELEGATION, AND WE HAVE THEIR COMMITMENT TO TRY AGAIN. IN PART, TODAY'S RESOLUTION IS TO MAKE CLEAR TO THE COMMUNITY AND ALSO TO MAKE CLEAR TO CONGRESS THIS COMMUNITY'S SUPPORT OF THESE INITIATIVES THAT WOULD HELP BRING WORKLOAD BACK TO CORPUS CHRISTI ARMY DEPOT AND SUSTAIN WORKLOAD THERE. AND SO I HAVE A PRESENTATION FOR BACKUP, BUT I THINK I'D LIKE JUST TO FOCUS ON THE RESOLUTION IN FRONT OF YOU, AND THOSE PRINCIPALLY ARE, AS I SAID, REQUIRING THE MILITARY TO BRING BACK A FULL 50% OF ALL THE HELICOPTER WORK BACK TO THE ARMY DEPOT. THAT IS WHAT IS MOST IMPORTANT IN THE NEXT 10 MONTHS. BECAUSE WHEN THE TASK FORCE STAFF AND THE EXECUTIVE COMMITTEE MEMBERS HAVE TALKED WITH ARMY LEADERSHIP, WE HAVE CONCERNS ABOUT THE PROJECTED WORKLOAD PAST FISCAL YEAR '26 AND INTO FISCAL YEAR '27. SO WE WANT TO COARSE CORRECT THAT AND COMPLY WITH THE CORRECT INTERPRETATION OF THAT 50% LAW. AND THEN BEYOND THAT, WE ARE GOING TO EXPLICITLY SUPPORT SEVERAL OF THE AMENDMENTS THAT CONGRESSMAN CLOUD AND CONGRESSMAN GONZALES HAVE AGREED TO FILE, AND WE'RE URGING OBVIOUSLY SENATOR CRUZ AND CORNYN TO SUPPORT THESE AS WELL. AND THOSE PRINCIPALLY IS THE RIGHT TO REPAIR, WHICH IS WHEN THE ARMY BUYS A PIECE OF EQUIPMENT, IT BUY WITH THE TECHNICAL DATA FOR THE ARTISANS AT THE CORPUS CHRISTI ARMY DEPOT, IF THEY DON'T HAVE IT, WE'RE PREVENTED FROM HAVING THAT WORKLOAD. WE WOULD LIKE THAT C CAD BE DESIGNATED AS THE ROTARY WING REPAIR FOR ALL MILITARY SERVICES. IF YOU'RE NOT FAMILIAR WITH HOW IT IS, IT'S BROKEN BY BRANCH, WHERE THE AIR FORCE AND THE NAVY HAVE THEIR OWN DEPOTS. CCAD, WE'RE A LITTLE BIAS, WE KNOW IT IS EXCELLENT, AND THERE HAVE BEEN INVESTMENTS MADE OVER THE LAST SEVERAL YEARS TO MODERNIZE THE FACILITIES THERE. AND I'M GOING TO SPEAK ABOUT THAT IN A SECOND. AND WHAT WE WANT IS FOR MORE OF THE WORKLOAD, INCLUDING THOSE OF OTHER BRANCHES TO BE AUTHORIZED TO COME TO CORPUS CHRISTI ARMY DEPOT AND TO SUSTAIN THE WORKFORCE THERE. THIS WAS RECENTLY DONE IN AN AMENDMENT THAT CONGRESSMAN CLOUD INTRODUCED AND WAS SUCCESSFUL IN ALLOWING COAST GUARD HELICOPTERS TO BE MAINTAINED AT CORPUS CHRISTI ARMY DEPOT. THAT RECENTLY WENT INTO EFFECT. AND SO WE WANT TO MAKE SURE IF THERE IS AN OPPORTUNITY TO EXPAND THAT THE OTHER BRANCHES OF THE MILITARY. THE THIRD IS TO RIGHT OFF DEBT ASSOCIATED WITH PROGRAMS CANCELED BY THE ARMY. THERE WAS A MODEL UPGRADE OF THE BLACKHAWK HELICOPTER FOR WHICH CCAD PURCHASED THE MACHINERY FOR 700 UNITS, AND CHANGED TRAJECTORY AND WILL NOT BE PROCURING THOSE 600 AVAILABLE UNITS. BECAUSE OF THAT, THE ARMY DEPOT IS REQUIRED TO CARRY THAT BAD DEBT LOAD. IT IS REFLECTED IN THE LABOR RATE AND THEREFORE MAKES THEM SEEM NON-COMPETITIVE. WE WANT TO CORRECT WHAT WE FEEL IS BASICALLY AN ARTIFICIAL MECHANISM TO OVERINFLATE THE COST ASSOCIATED THERE. THE FOURTH IS THE DEFENSE LOGISTICS AGENCY, WHICH IS THE AGENCY WHICH PROVIDES THE REPAIR COMPONENTS. THERE IS A SURCHARGE ASSOCIATED WITH THOSE. ONE THAT WE HAVE CONTINUED TO ADVOCATE TO THE PENTAGON. IT UNFAIRLY PENALIZES HELICOPTER REPAIR PARTS. WE WOULD LIKE TO EQUALIZE THAT ACROSS ALL OF THE SUPPLIES THAT THE DEFENSE LOGISTIC AGENCY PROVIDES TO OUR MILITARY. IN ORDER TO EQUALIZE THE PLAYING FIELD FOR THE CORPUS CHRISTI ARMY DEPOT. FINALLY, IF YOU HAVE HAD THE OPPORTUNITY TO PARTICIPATE IN A WINGING CEREMONY, I WOULD ENCOURAGE YOU TO TAKE SOME TIME TO SPEND SOME TIME ON THE BASE BUT I KNOW -- I THINK ALL OF OUR COUNCIL HAS BEEN OUT THERE, WHETHER IT'S FOR AN AIR SHOW, WINGING CEREMONY OR SOME OTHER APPOINTMENT. YOU CAN SEE THE ARMY IS DOING EXTENSIVE CONSTRUCTION ON WHAT LOOKS LIKE A VERY LARGE FACILITY. IT'S REFERRED TO IN LEGISLATIVE LANGUAGE AS THE POWER TRAIN FACILITY. SOMETIMES YOU WILL REFER TO IT AS ANOTHER NAME BECAUSE CCAD LIKES ACRONYMS, SO THEY HAVE A TENDENCY TO CHANGE THOSE. THE POINT IS IN THE LAST MILITARY CONSTRUCTION BILL, $60 MILLION WAS SECURED TO FINISH PHASE 4 OF THAT BUILDING. THERE ARE FOUR MORE PHASES TO GO. AND SO THE SCHEDULE ON THAT CONSTRUCTION HAS CONTINUED TO SLIDE AND WE'D LIKE TO GET CONGRESS TO DELIVER THE FULL AMOUNT OF THOSE NEXT SCHEDULED PHASES AND BRING THEM BACK IN LINE WITH OUR CALENDAR. WE KNOW ONCE THIS FACILITY IS COMPLETE, CORPUS CHRISTI ARMY DEPOT WILL HAVE ONE OF THE MOST MODERNIZED PIECE OF FACILITY -- MOST MODERNIZED FACILITIES IN ORDER TO TAKE PIECES OF EQUIPMENT AND COMPLETE IT IN LINE. WHEREAS NOW THEY HAVE TO MOVE BETWEEN BUILDINGS. IT BRINGS EFFICIENCIES. IT BRINGS MODERNIZATION. IT BRINGS THE OPPORTUNITY TO INCORPORATE NEW WORKLOAD THAT MAY NOT BE EXISTING AIRFRAMES AT THE ARMY DEPOT. THAT'S WHAT THE RESOLUTION DOES. I'M HAPPY TO GO THROUGH THE PRESENTATION, IF THERE'S FURTHER QUESTIONS. THANK YOU, MAYOR AND COUNCIL FOR THE OPPORTUNITY TO PRESENT TODAY. >> Mayor Guajardo: RYAN, THANK YOU. I WANT TO THANK YOU, SPECIFICALLY -- I WANT TO THANK OUR FEDERAL DELEGATION HAS BEEN EXTREMELY IMPORTANT IN CARRYING THE WEIGHT AND DOING THIS. THIS IS SO CRITICAL, AS YOU MENTIONED. SO I APPRECIATE YOU BRINGING FORTH THIS RESOLUTION. BUT IT'S BEEN A LOT OF WORK FOR A LOT OF PEOPLE. SO THANK YOU. INCLUDING THE TASK FORCE, THE SOUTH TEXAS MILITARY TASK FORCE. THEY LEAD A VERY STRONG EFFORT IN CONTINUING TO KEEP THIS AT THE FOREFRONT. AND SO IT TAKES A VILLAGE, AS THEY SAY. WE HAVE A COUPLE OF QUESTIONS BUT I AM GOING TO MAKE A MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. THANK YOU, RYAN. I KNOW THIS IS A VERY COMPLEX ITEM AND THE IMPORTANCE IS ITS IMPACT VOLUME ON OUR COMMUNITY. CCAD HAS BEEN, FOR A LONG TIME, A PILLAR. A VERY IMPACTFUL ORGANIZATION WITHIN OUR COMMUNITY. WHAT I'M RECOGNIZING, OF COURSE, IS THAT WE DO NOT HAVE THE ULTIMATE SAY ON SOME OF THESE THINGS. WE HAVE TO RELY ON OUR PARTNERS AT THE STATE AND FEDERAL LEVEL FOR THEIR SUPPORT. I COMMEND YOUR EFFORTS AT COMMUNICATING THAT. ABSOLUTELY 100%. WHAT I WOULD LIKE US TO DO IS THROUGH THIS, WHICH HAS BEGUN HERE, WE HAVE THE PARTNERSHIP OF THE TASK FORCE, THE CHAMBER, THE CITY. WE'RE PUTTING FORWARD NOW A RESOLUTION IN SUPPORT OF THIS EFFORT. ONE OF THE STRONGEST TOOLS WE HAVE IS OUR MESSAGING. IS BEING ABLE TO COMMUNICATE AT THESE LEVELS TO REQUEST FOR SUPPORT. I'M THANKFUL THAT WE HAVE OUR DELEGATION'S SUPPORT BUT WE HAVE TO CONVINCE ALL OF THE COLLEAGUES THAT THIS IS A PRIORITY. SO MESSAGING IS KEY. SO WITH THOSE THREE PARTNERS AND THE OTHER PARTNERS, I THINK THIS ALSO BECOMES AN ITEM THAT OUR ECONOMIC DEVELOPMENT TAKES ON AS A PRIORITY, BECAUSE IT IS A HUGE IMPACT TO THIS. I KNOW RECENTLY WE HAD A CHANGE IN LEADERSHIP AT THAT ORG. BUT THAT MESSAGING THAT WE CAN COLLECTIVELY PUT FORWARD. I THINK THERE'S ROOM HERE [LAPSE IN AUDIO] BEHIND THESE ORGANIZATIONS ASKING FOR THAT SUPPORT. THAT WAY THE CREDIBILITY, THE AUTHORITY, THE WEIGHT OF THESE FOUR ORGANIZATIONS CAN SPEAK THIS IN UNITY AND THE COMMUNITY CAN GET BEHIND THAT. SO THROUGH INTERGOVERNMENTAL RELATIONS AND THROUGH THESE FOUR ORGANIZATION, IF WE CAN FOCUS ON SOMETHING LIKE THAT, I THINK IT WOULD BE INCREDIBLY IMPACTFUL BECAUSE THAT'S WHAT WE NEED TO GET THAT BUY-? >> I COULDN'T AGREE MORE. I DO WANT TO CLARIFY OR MAYBE REPRESENT FOR THE COMMUNITY'S AWARENESS THE BUY-IN THAT DOES EXIST FROM OUR ENTITIES ACROSS TOWN. THE SOUTH TEXAS MILITARY TASK FORCE IS THE CITY, THE COUNTY, THE PORT OF CORPUS CHRISTI, THE CHAMBER OF COMMERCE, THE ECONOMIC DEVELOPMENT CORPORATION. INDIVIDUALS LIKE GARY BRADFORD, ON THE TEXAS MILITARY PREPAREDNESS COMMISSION APPOINTED BY GOVERNOR ABBOTT. WE HAVE A LIST OF PARTNERS FOCUSED ON THIS. I THINK FOR US THERE'S ALWAYS A BALANCE ABOUT WHEN IS THE APPROPRIATE TIME TO FULLY WEIGH IN AND I THINK IT HAS BECOME CLEAR THAT WITH OUR CURRENT PROJECTIONS, NOW IS THAT TIME. SO THAT'S WHY THE RESOLUTION IS HERE TODAY. THAT'S WHY WE'RE GOING TO CONTINUE TO TALK ABOUT THAT IN THE MEDIA. THAT'S WHY WE'RE WORKING WITH OUR CONGRESSIONAL PARTNERS TO RALLY THE TROOPS, NOT JUST IN THE HOUSE BUT IN THE SENATE. WE KNOW WE ARE PARTNERING WITH JUDGE SCOTT AND THE COUNTY IS GOING TO DELIVER THE SAME MESSAGE AS WELL. IT'S GOING TO TAKE THE ENTIRE COMMUNITY SPEAKING WITH ONE VOICE ABOUT THE IMPORTANCE OF MAINTAINING THE WORKLOAD AND THE WORKFORCE AT CORPUS CHRISTI ARMY DEPOT. >> P. >> Paxson: THANK YOU FOR THAT ACKNOWLEDGMENT. PLEASE RECOGNIZE MY INTENTION IS TO ACKNOWLEDGE THAT WE HAVE THE SUPPORT OF ALL OF OUR LOCAL PARTNERSHIPS. BUT I THINK, AS YOU VERY ACCURATELY STATED, NOW IS WHEN EACH OF US -- YES, WE HAVE COME TOGETHER AS ONE CONGLOMERATE TO PUSH THIS FORWARD. BUT WE CAN EACH DO OUR PART SUPPLEMENTALLY TO ADD TO THAT MESSAGE. TO MAKE THAT A PRIORITY WITHIN OUR ORGANIZATIONS. SO WE'RE TAKING THIS AS THE PILLAR AND RUNNING WITH IT, IF THAT MAKES SENSE. THANK YOU VERY MUCH. >> I DO WANT TO POINT TO SOME RESOURCES. THEY ARE ONLINE, SUPPORTC CAD.COM. YOU HAVE SEEN SOME OF IT COME OUT ON SOCIAL MEDIA BUT EDUCATION FOR HOW A DEPOT WORKS AND HOW IT IS DIFFERENT FROM A TYPICAL MILITARY INSTALLATION AND WHAT WE'RE TRYING TO DO TO ADVOCATE. IT'S ALL-HANDS-ON-DECK IN TERMS OF GETTING OUT THE MESSAGE. >> Paxson: ABSOLUTELY. THANK YOU VERY MUCH, RYAN. >> Mayor Guajardo: I WANT TO THANK THE CHAMBER. SORRY I LEFT Y'ALL OUT. THEY'RE WORKING ON THAT CAMPAIGN. AGAIN, MESSAGING IS IMPORTANT. THANK YOU FOR ALL THE WORK YOU HAVE DONE. COUNCILMAN ROY. >> Roy: I THINK THE FIRST TIME I TOOK A TOUR OF THE DEPOT WAS PROBABLY LEADERSHIP CORPUS CHRISTI TOOK US THROUGH THERE. IT'S AMAZING. BEING PRIOR MILITARY AND SEEING A LOT OF THE EQUIPMENT AND THE THINGS THAT THEY WERE DOING, IT WAS AMAZING. I THINK THE THING THAT PROBABLY, FROM A BUSINESS STANDPOINT, IT JUST MADE SENSE. YOU KNOW, THE JOB THAT THEY WERE DOING, THE MONEY THEY WERE SAVING, THE MISSION THEY WERE DOING. BUT THE OTHER THING IS THE PRIDE OF THE INDIVIDUALS THAT WORK THERE. IT WAS AMAZING TO SEE THE TENURE OF MOST OF THEM. THEIR PRIDE IN THE THINGS THAT THEY WERE DOING. AND TO SEE THE POSSIBILITY OF THAT LEAVING. FIRST OF ALL, CORPUS CHRISTI, WE HAVE MULTIPLE PERSONALITIES. BUT ONE OF THE PERSONALITIES, AS WITNESSED IN COUNCIL TODAY, BUT ONE OF THE PERSONALITIES I THINK IS PROBABLY THE STRONGEST IS WE'RE A MILITARY TOWN. I THINK BACK IN 1982, WHEN I FIRST CAME HERE AND I REALIZED THAT. PEOPLE THAT HAVE SERVED THEIR COUNTRY, HAVE SERVED THEIR COUNTRY IN COMBAT, A LOT OF TIMES YOU TRY TO PUT THAT BEHIND YOU AND NOT THINK ABOUT IT. BUT IT WAS A FOURTH OF JULY PARADE THAT MADE ME UNDERSTAND AND GRASP THAT AGAIN. SAYING ALL OF THAT, WE CAN'T LOSE THIS PART OF OUR PERSONALITY. IT'S EXTREMELY IMPORTANT THAT WE REMAIN A MILITARY TOWN. IT'S SO IMPORTANT TO THE VITALIZATION AND THE LOOK OF OUR CITY AND THE UNIQUENESS OF OUR CITY. WITH THAT, I'M GLAD THAT YOU'RE PUTTING THINGS IN PLACE TO BE ABLE TO HAVE EVERYONE MAKE COMMENT ABOUT THE IMPORTANCE OF KEEPING THIS FACILITY. I SPOKE AT THE WING CEREMONIES ABOUT TWO MONTHS AGO. I HADN'T BEEN OUT THERE IN THREE OR FOUR MONTHS AND I WAS LITERALLY SHOCKED AT HOW DESOLATE PARTS OF THE BASE LOOKED. AND IT WAS SAD. I HOPE THE CHAMBER -- AND WE NEED TO GET THAT MESSAGE OUT. WE NEED TO BE ABLE TO MAKE IT SO THAT EVERYBODY CAN COMMENT. SOCIAL MEDIA IS A VERY POWERFUL TOOL AND WE HAVE TO BE ABLE TO GET THAT MESSAGE OUT TO EVERYBODY AND KNOW THAT EVERYONE WITHIN THE CITY OR OUTSIDE OF THE CITY, BUT WITHIN THE 500,000-PLUS PEOPLE HAVE THE OPPORTUNITY TO TALK ABOUT HOW IMPORTANT THAT IS TO US. I THINK THAT'S GOING TO HELP US. YOU KNOW, I HAVE BEEN AROUND AND WHEN THEY STARTED OUT -- FOR EXAMPLE, MY LAST STATION WAS FORT SAM HOUSTON AND THEY QUIT CALLING IT BROOKE ARMY MEDICAL CENTER. MY WIFE WAS THE COMPANY COMMANDER UNDER THE NEW NAME. NOW THEY HAVE GONE FULL CIRCLE . THINGS CAN CHANGE. THINGS CAN GO BACK TO THE WAY THEY ARE BUT WE NEED EVERYBODY'S SUPPORT. THANK YOU. >> COUNCILMAN, I DO WANT TO EXPAND ON THAT JUST A SECOND. JUST BECAUSE WE'RE TALKING ABOUT THE ARMY DEPOT TODAY DOESN'T MEAN THE TASK FORCE ISN'T ALSO WORKING ON THE NAVAL AIR STATION. IT IS CRITICALLY IMPORTANT. WE HAVE A FULL LIST OF PRIORITIES THAT WE'RE WORKING ON BEHALF OF THE FACILITIES AND THE INFRASTRUCTURE AT NAVAL AIR STATION CORPUS CHRISTI. THE STATE HAS BEEN A MAJOR CONTRIBUTOR THROUGH THE DEAAG PROGRAM. THIS COUNCIL IS FAMILIAR WITH THAT. AS WE HAVE BEEN SUCCESSFUL OF BRINGING APPROXIMATELY $14 MILLION WORTH OF INFRASTRUCTURE INVESTMENT OUT THERE. SO I AGREE WITH YOU. THINGS CAN CHANGE AND WE NEED THE INVESTMENT FROM THE FEDERAL GOVERNMENT TO BUILD UP ALL ASPECTS OF THE TRAINING BASE OUT THERE. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: I WAS GOING TO BRING UP THE NAVY. THANK YOU. BUT THERE IS A RELATIONSHIP BETWEEN THE DEPOT AND THE NAVY AND IT MAKES THE NAVY'S EXISTENCE ON THE BASE MORE -- >> POSSIBLE. >> Scott: POSSIBLE. THERE'S AN INTERESTING RELATIONSHIP. ALL I'VE GOT TO SAY IS THANK YOU FOR WHAT YOU DO. I WOULD ASK WE AS A COMMUNITY NOT BE A PENNY WISE, POUND FOOLISH. THE QUESTION I HAVE FOR THE TASK FORCE IS WHAT ELSE DO YOU NEED? IF IT'S DOLLARS, LET'S HAVE A CONVERSATION. WE DON'T WANT TO SPEND $10 AND NOT GET OUR MESSAGE OUT CORRECTLY OR NOT BE ABLE TO SHARE IT WITH A BAZILLION PEOPLE WHO KNOW ALL THESE ACRONYMS. AS WE MOVE INTO THE BUDGET CYCLE, PETER, I THINK, YOU KNOW, WE WANT OUR PARTNERS TO BE INVOLVED. BUT IF WE NEED TO UP OUR GAME TO MAKE SURE YOU ALL HAVE THE ASSETS YOU NEED TO BE SUCCESSFUL, I FOR ONE WOULD BE OPEN TO THAT CONVERSATION. MY SENSE IS THERE IS ANOTHER TRIP POSSIBLY GOING TO D.C. IN THE NEXT COUPLE OF MONTHS AND I WOULD ENCOURAGE ANY AND EVERYONE WHO HAS AN INTEREST IN THE DEPOT AND THE NAVY TO GET UP THERE AND WORK THE HALLS. THAT'S REAL. WHEN I HAD A CHANCE TO GO IN SEPTEMBER, IT'S REAL. WE HAVE A GREAT STORY TO TELL BUT IF THEY DON'T HEAR IT, THEY DON'T KNOW IT. IF THEY HEAR IT FROM CORPUS CHRISTIANS THAT'S EVEN BETTER. LET US KNOW WHAT ELSE WE CAN DO. >> AND THE MILITARY TASK FORCE ALWAYS HAS TAKEN TRIPS ON ITS OWN AND PARTICIPATED IN THE COASTAL BEND TO D.C. TRIP. THAT'S THE TRIP YOU'RE REFERRING TO THAT'S COMING UP THIS YEAR. THAT'S AN IMPORTANT OPPORTUNITY TO GET IN FRONT OF NOT JUST OUR DELEGATION BUT A BROADER DELEGATION, TO COUNCILWOMAN PAXSON'S POINT, OF THE ENTIRE TEXAS CONGRESSIONAL DELEGATION AND MAKING THEM AWARE. YEAH. THANK YOU FOR THAT. >> Scott: AWESOME. LET US KNOW WHAT ELSE WE CAN DO TO HELP. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. I DID HAVE A CONVERSATION WITH SOME OF THE UNION REPRESENTATIVES FROM THAT AREA. I AM SORRY THAT I WAS NOT ABLE TO MAKE IT, I GUESS TO THE WEDNESDAY'S PRESS CONFERENCE. I DID TRY TO SEND SOME REPRESENTATION. THE MAIN THING IS THAT THE ARMY DEPOT HAS BEEN A STAPLE. IT IS PART OF OUR CITY. I'M JUST CONCERNED -- BECAUSE I THINK I REMEMBER BACK IN THE DAY WE COULD BOAST WE HAD LIKE 5,000. NOW I THINK HE SAID 2,000. IS THAT ABOUT RIGHT? >> JUST OVER 2,000. >> Campos: YOU KNOW, THIS IS -- I MEAN, I KNOW THAT IT'S PART OF THE FEDERAL GOVERNMENT GOING DOWN AND STATING THAT, YOU KNOW, WE NEED TO READJUST SOME OF THESE BASES. BUT AGAIN, LIKE YOU HAVE BEEN STATING, THAT THE ARMY DEPOT CAN BE A MAGNET OR CAN BRING SOME OF THOSE OTHER -- YOU KNOW, THE AIR FORCE OR NAVY. I KNOW WE HAVE THE NAVY. BUT TO BRING -- WHATEVER MORE WE CAN DO TO MAKE CORPUS CHRISTI ARMY DEPOT SUCCESSFUL, I THINK WE ALL AGREE WE NEED TO DO OUR PART. BUT IT'S SAD THAT WE'RE DOWN TO NOW 2,000. AGAIN, WHATEVER WE NEED TO DO. >> I DID HAVE THE OPPORTUNITY TO SPEAK WITH THE INDIVIDUALS THAT YOU HAD ASKED TO COME TO THE EVENT. I THINK IT WAS AN IMPORTANT CONVERSATION TO KEEP TABS. I CAN TELL YOU THE TEAM AT THE DEPOT IS VERY COMMITTED TO BEING COMPETITIVE. THAT IS -- AND IT'S NOT A TRADITIONAL -- AS THE MEMO ATTACHED WITH THIS STATES. IT'S NOT A TRADITIONAL INSTALLATION IN THE SENSE THAT WE'RE JUST RELYING ON FEDERAL APPROPRIATIONS. THEY HAVE TO COMPETE FOR WORKLOAD AND THEY CAN BE COMPETITIVE. WE HAVE TO GET RID OF SOME OF THE ARTIFICIAL BURDENS ON THEM AND ALLOW THEM TO OPERATE IN THAT SPACE. I THINK IT'S, WITHOUT A DOUBT, THE LEADERSHIP IS COMMITTED TO LOOKING AT THE FUTURE OF ARMY AVIATION AND HAVING A FULL ROLE IN THAT. THAT'S PART OF THAT CONVERSATION ABOUT INVESTMENT IN FACILITIES. >> Campos: THAT'S WHAT HE MENTIONED. HE MENTIONED WE WERE NOT INVESTING -- OR THE ARMY DEPOT -- IS NOT INVESTING AS MUCH AS IT COULD OR AS MUCH AS IT SHOULD, I GUESS. I DON'T KNOW. WHATEVER WE NEED TO DO TO HAVE THOSE CONVERSATIONS, WE NEED TO DO THAT. >> YEAH. THAT'S PART OF THIS RESOLUTION TODAY IS MAKING SURE THAT OUR FEDERAL DELEGATION UNDERSTANDS THAT THE DOLLARS ARE CRITICALLY IMPORTANT TO THE FUTURE OF CCAD. >> Campos: THANKS, RYAN. >> Mayor Guajardo: COUNCILMAN CANTU. >> Cantu: THANK YOU, MAYOR. ON THE PRESS RELEASE A COUPLE OF WEEKS AGO THERE WAS A RED SIGN I SAW ON TV. IT HAD 2015, 4980 AND 2026, 1,000. 2026, DOES THAT MEAN WE ONLY HAVE A THOUSAND EMPLOYEES OVER THERE? >> THAT'S A PROJECTION BASED ON ANTICIPATED WORKLOAD. THROUGH THE END OF THE FISCAL YEAR '26. >> Cantu: WE SHOULD ONLY HAVE A THOUSAND? >> IF NOTHING CHANGES. CORRECT. >> Cantu: THERE WAS A BIG LAYOFF THE BEGINNING OF LAST YEAR. WHY DIDN'T WE SPEAK UP THEN? WHY DID WE WAIT SO LONG TO DO A PRESS RELEASE AND DO ALL THIS STUFF? WE SHOULD HAVE DONE IT A LONG TIME AGO. >> I THINK THE LAYOFF YOU'RE TALKING ABOUT IS THE ENDING OF A FEDERAL CONTRACT WITH A PARTICULAR UNION GROUP THAT WAS OUT THERE. AT THAT TIME THERE WERE COMMUNICATIONS TO OUR FEDERAL DELEGATION TO TRY TO UNDERSTAND WAS THIS THE RESULT OF AIRFRAMEWORK THAT WAS TIMING OUT AND THAT CONTRACT NATURALLY COMING TO AN END? OR WAS THIS A PRESSURE ON THE ARMY DEPOT THAT WAS FORCING THEM TO LET GO OF EMPLOYEES. AND SO I THINK WE HAVE BEEN CONSISTENT. I THINK THE PART ABOUT IT THAT NEEDS TO IMPROVE IS THE COMMUNITY COMING TOGETHER AND COLLECTIVE SAYING TO OUR DELEGATION WE'RE REACHING A POINT WHERE WE CAN'T SUSTAIN FURTHER LOSSES. >> Cantu: WHY DO YOU THINK IT'S BEEN A REDUCTION OF WORKFORCE -- >> SO DRASTICALLY? >> Cantu: YEAH. >> WHEN YOU LEFT SOME OF THE WARS INVOLVED IN, YOU WEREN'T HAVING THE WORKLOAD ASSOCIATED WITH THE DAMAGED HELICOPTERS. THAT WAS A REDUCTION OVER TIME. THE OTHER IS THE NATURE OF THE DEPOT ITSELF. I HATE TO PUT THEM ON THE SPOT BUT IF CRESTON WANTS TO ADD TO THIS. HE WAS THE TOP CIVILIAN AT THE TIME AT THE DEPOT. >> Cantu: SOUTH TEXAS TASK FORCE IS RAN BY THE CHAMBERS? >> WE HAVE A FUNDING AGREEMENT WITH THEM FOR THIS. >> Cantu: BUT WE GIVE THEM MONEY? >> TO THE TASK FORCE, YES. CRESTON IS THEIR EXECUTIVE DIRECTOR. >> Cantu: HOW MUCH DO WE GIVE TO THE TASK FORCE? >> A YEAR, THE CITY PROVIDES $75,000. THE PORT OF CORPUS CHRISTI. WE ARE SUPPORTED BY NUECES COUNTY. REDC ALSO. IT'S MANY ELEMENTS IN OUR COMMUNITY SUPPORT THE TASK FORCE. >> Cantu: I JUST HOPE AND PRAY THAT THE CHAMBERS DOES THE SAME ENERGY LEVEL ON THE INNER HARBOR DESAL PLANT AS ON THIS PROJECT. WE NEED TO KEEP THAT OPEN, YOU KNOW, AND I HOPE AND PRAY THEY DO A LOT OF STUFF IN TEXT MESSAGING AND CAMPAIGNS. THE SAME ENERGY AS THE INNER HARBOR. BUT WHAT WAS THE REASON YOU THINK IS THE REDUCTION? >> THERE'S NO ONE REASON. IT'S A VERY COMPLEX SUBJECT. BUT IF YOU WANT A DEEP DIVE, THERE'S AN ARTICLE PUBLISHED ON THE WEB THAT WE TALKED ABOUT IN THE PRESS CONFERENCE. I TALKED TO THE PORT COMMISSION THIS MORNING AND WE ARE VERY INTERESTED IN SUPPORTING THE DEPOT. BUT THAT ARTICLE IS WRITTEN BY AN ARMY SOLDIER AND IT DESCRIBES VERY ACCURATELY WHAT HAS HAPPENED TO CCAD AND WHY. IT DOESN'T BLAME ANYBODY BUT THAT'S JUST BECAUSE HELICOPTERS ARE DECREASING IN THE ARMY. THE MANUFACTURERS OF THE HELICOPTERS AREN'T MAKING AS MANY OF THEM. THEREFORE, WHAT ARE THEY LOOKING FOR? THEY WANT THEIR WORKFORCE TO STAY SO THEY'RE FIGHTING FOR THAT MAINTENANCE WORKLOAD AND THEY'RE GETTING THE MAJORITY OF IT. >> Cantu: UNDERSTAND. THANK YOU FOR EXPLAINING THAT. THANK YOU. >> Mayor Guajardo: THANK YOU, CRESTON. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THANK YOU, RYAN. >> YES. THANK YOU. >> Mayor Guajardo: THE MOTION CARRIES. WE'RE GOING TO DO THE LAST PULLED ITEM BEFORE WE BREAK FOR LUNCH AND THAT IS ITEM NO. 11. A RESOLUTION AUTHORIZING THE PURCHASE OF 58 REPLACEMENT AND 14 ADDITIONAL LIGHT AND HEAVY VEHICLES AND EQUIPMENT BY VARIOUS DEPARTMENTS. COUNCILWOMAN PAXSON, YOUR QUESTION OR COMMENT. >> GOOD AFTERNOON. >> Paxson: GOOD AFTERNOON. SO I UNDERSTAND THAT VEHICLES TIME IN AND OUT. I TOTALLY UNDERSTAND THAT. I UNDERSTAND THAT WE HAVE A CULTURE OF BEING PROACTIVE AND MAKING SURE THAT OUR CITY IS VERY COMPETITIVE WITH THE SERVICES THAT WE OFFER AND MAINTAINS AND IMPROVES THE STANDARD. I COMPLETELY UNDERSTAND THAT. HOWEVER, PETER, PERHAPS MORE DIRECTED AT YOU. BUT FOR ME, I UNDERSTAND $3.4 MILLION IS A VERY SMALL AMOUNT COMPARED TO WHAT'S ON OUR AGENDA TODAY. BUT IT'S STILL $3.4 MILLION. I UNDERSTAND BUSINESS IN ALL DEPARTMENTS HAS TO KEEP GOING. BUT FOR ME, YOU KNOW SOME YEARS AS A FAMILY YOU CAN GO ON VACATION AND SOME YEARS YOU TIGHTEN YOUR BELT AND YOU EAT AT HOME AND YOU PLAY AT THE PLAYGROUNDS AND GO TO THE BEACH. RIGHT NOW, WE DESPERATELY HAVE TO PUT ALL OF OUR FOCUS ON OUR WATER SUPPLY PROJECTS. SO FORGIVE ME. I'M NOT TARGETING YOU OR YOUR DEPARTMENT OR ANYTHING IN PARTICULAR IN THIS PACKET. BUT TO ME THIS WOULD BE AN AVENUE THAT PERHAPS WE COULD DO SOME BELT TIGHTENING AND CONSERVE SOME OF OUR GENERAL FUNDING. >> Zanoni: YES, COUNCILWOMAN. SO THE FLEET VEHICLES AND HEAVY EQUIPMENT IS PART OF RUNNING THE BUSINESS. WHAT EVIDENCE SHOWS, IF YOU DELAY REPLACING THEN YOUR MAINTENANCE COSTS GENERALLY INCREASE AND EVENTUALLY OUTSTRIP THE COST TO REPLACE THE VEHICLE. THIS IS A REGULAR PART OF RUNNING OUR OPERATIONS, SIMILAR TO KEEPING POSITIONS FILLED AND BUYING OTHER EQUIPMENT, THAT TYPE OF THING. IF WE PAUSE ON THIS OR DON'T BUY THESE VEHICLES, THAT MEANS TIME LAPSES. THE VEHICLES THAT WE HAVE THAT ARE DUE TO BE REPLACED BECAUSE OF MILEAGE OR OPERATIONAL ISSUES DON'T GET REPLACED, WHICH COULD THEN CAUSE AN ISSUE ON THE WORK THAT HAS TO BE DONE IN A GIVEN DAY. WHICH WE'LL ALL HEAR ABOUT. WE WON'T BE ADDRESSING WHAT THE PUBLIC WANTS. SEVERAL OF THESE VEHICLES HERE ARE IN CORPUS CHRISTI WATER, JUST RUNNING THE REGULAR BUSINESS. WHETHER IT'S WASTEWATER OR THE WATER SYSTEM. I THINK THE CITY HAS DONE A GREAT JOB IN MAKING SURE WE HAVE DECENT FLEET. AND SINCE I'VE BEEN HERE, WE HAVE BEEN SAVING MONEY TO CASH BUY VEHICLES. WHEN I FIRST GOT HERE, EVERYTHING WAS BOUGHT ON DEBT AND WE WERE PAYING HIGH INTEREST RATES WHEN WE KNOW WE HAD TO REPLACE A VEHICLE. WE PUT ASIDE CASH DOLLARS OVER THE PAST SEVERAL BUDGETS, OVER THE PAST FIVE AT LEAST. WHERE WE'RE AT A POINT WHERE A LOT OF OUR VEHICLES ARE BUYING WITH CASH NOT WITH LOANS THAT HAVE A 7% TO 10% INTEREST RATE. I DO RECOMMEND WE PROCEED. I KNOW THAT THE ECONOMY AND OUR OWN LOCAL ECONOMICS HERE AT THE CITY AREN'T AS GOOD AS THEY WERE A FEW YEARS AGO BUT YOU'RE GOING TO SEE A RIPPLE EFFECT OF SPENDING MORE MONEY IN THE NEAR TERM AND MAYBE IN THE LONG TERM IF WE DON'T STAY ON SCHEDULE WITH REPLACING VEHICLES. >> Paxson: I KNOW THE TEAM HAS PUT A LOT OF FOCUS ON PREVENTIVE MAINTENANCE AND I ALIGN WITH THAT STRONGLY. MY COMMENTS ON THE SEAWALL ARE A GOOD EXAMPLE. HOWEVER, I THINK IN BUDGET YEAR '26, I KNOW THAT IT'S PASSED. BUT FOR BUDGET YEAR '26 AND '27, I DON'T THINK ANYONE COULD HAVE ANTICIPATED THE AMOUNT OF CAPITAL EXPENDITURES WE ARE GETTING TO SIMPLY PROVIDE THE COMMODITY THAT IS WATER. I DON'T THINK THERE'S ANY WAY THAT WE COULD HAVE FORESEEN WHAT WE'RE DOING. WE HAVE TO. I RECOGNIZE THAT. THAT'S ESSENTIALLY WHAT I'M SAYING. WE HAVE TO KEEP THAT AS OUR TOP PRIORITY. I DON'T NOT SUPPORT YOUR EFFORTS BUT I ALMOST SAY PERHAPS WE WAIT BRIEFLY. BECAUSE RIGHT NOW WE HAVE GOT TO REALLY MAKE THAT OUR TOP PRIORITY. I KNOW THAT BUSINESS IS GOING ON RIGHT NOW. WE ARE, WITH ALL OF THESE ZERO TURNS AND KUBOTA, WE ARE MOVING FORWARD. WE ARE COMPLETING OUR TASKS. SO LET'S JUST, IN MY OPINION, WE SHOULD MAKE THAT OUR FUNDING FOCUS UNTIL, PETER, WE HAVE FULLY SECURED THE SUPPORT WE NEED FOR THESE ITEMS. BECAUSE THEY ARE COMING ONLINE. WE DO HAVE TO MOVE FORWARD WITH THEM. AND THEY'RE VERY EXPENSIVE. >> YES, MA'AM. IF I MAY, AS THE CITY MANAGER MENTIONED, WE NEED TO LOOK AT THE POLICY FOR THE VERF. IT STATES THE MONEY IS FOR PURCHASING NEW VEHICLES AND EQUIPMENT. ONCE THAT MONEY HAS BEEN ALLOCATED THEN WE ARE SUPPOSED TO PURCHASE THOSE REPLACEMENT VEHICLES AND PIECES OF EQUIPMENT FOR EACH DEPARTMENT. WE'RE TRYING TO PULL THAT MONEY TO PUT IT ELSEWHERE, WE HAVE TO LOOK AT THE POLICY TO SEE IF WE CAN LEGALLY PULL THAT MONEY OUT TO USE IT ELSEWHERE. >> Paxson: WELL, THANK YOU FOR BRINGING THAT UP. I KNOW THERE ARE CASES IN MUNICIPAL CODE FOR SPENDING THAT A CITY MANAGER AND COUNCIL CAN SAY, YES, THIS WAS BUDGETED FOR A SPECIFIC DEPARTMENT AND USE IN THE GENERAL FUND. BUT WE'RE NOW SAYING WE NEED TO DO AN AMENDMENT AND REALLOCATE THOSE FUNDS FOR A HIGHER PRIORITY. I KNOW THERE'S PROVISIONS FOR THAT. TO PIGGYBACK ON THAT STATEMENT, THAT DOES PROVIDE US PERHAPS ANOTHER CAVEAT AS TO WHY WE MAY FOREGO THIS AT THIS TIME AND LOOK AT IT AGAIN. PLEASE, AGAIN, I SUPPORT YOUR DEPARTMENT. I SUPPORT YOUR EFFORTS. I APPRECIATE WHAT YOU BRING TO US. WE'RE JUST IN A SPECIFIC SITUATION RIGHT NOW. >> YES, MA'AM. SO FOR THIS FISCAL YEAR, FOR THE ADOPTED BUDGET, WE HAVE 257 VEHICLES THAT ARE SUPPOSED TO COME TO COUNCIL. THIS IS 72 OF THAT. SO WE HAVE 118 LEFT FOR THIS FISCAL YEAR. BUT WE WILL TAKE A LOOK AT WHAT WE'RE GOING TO ACQUIRE NEXT YEAR FOR FISCAL YEAR '27 AND '28. >> Paxson: I APPRECIATE THAT, PETER BOTH. I CAN'T STRESS ENOUGH HOW MUCH THIS HAS TO JUST REALLY BE A BELT TIGHTENING YEAR. I KNOW IT'S DIFFICULT. I KNOW THIS PAST BUDGET WE HAD A $7 MILLION SHORTFALL THAT EVERY DEPARTMENT WAS TASKED TO STREAMLINING AND WE WERE ABLE TO OVERCOME THAT. THIS IS IN ADDITION TO THAT REQUEST. BUT WITH THE SITUATIONS AS THEY HAVE UNFOLDED IN THE LAST TEN MONTHS, 12 MONTHS, WE ARE WHERE WE ARE. >> Zanoni: THOSE ARE ALL POINTS WELL TAKEN, COUNCILWOMAN. WE DO RECOMMEND PURSUING THE PURCHASE OF THESE VEHICLES. WHEN YOU LOOK AT THE $3.4 MILLION, $1.2 MILLION IS FOR POLICE TO BUY REPLACEMENT VEHICLES. THESE ARE ALL REPLACEMENT, 25 OF THEM, THAT ARE USED IN POLICE OPERATIONS FOR UNDERCOVER OPERATIONS. >> Paxson: SO THIS IS -- I'M SO SORRY. 75 OUT OF A LITTLE OVER 200? >> 72. FOR THIS YEAR WE HAVE 157 PART OF THE FISCAL YEAR '26 ADOPTED BUDGET. >> Paxson: WE HAVE FOUR TIMES TO STILL COME THROUGH. >> WE HAVE 118 LEFT FOR THIS FISCAL YEAR THAT WE HAVE TO COME THROUGH. >> Paxson: THREE TIMES THIS TOTAL ABOUT. >> Zanoni: DO YOU KNOW THE TOTAL NUMBER OF VEHICLES WE HAVE JUAN? >> YES. THE TOTAL NUMBER IS APPROXIMATELY 2700. >> Zanoni: WE HAVE ALMOST 3,000 VEHICLES IN OUR SYSTEM AND THAT'S WHAT IT TAKES TO RUN THE BUSINESS. THAT INCLUDES PUBLIC SAFETY, POLICE FIRE PARKS GETTING AROUND TO MAINTAIN THE PARKS, STREETS WATER WASTEWATER. >> Paxson: I TOTALLY DO UNDERSTAND AND I DO SUPPORT EACH OF OUR DEPARTMENTS, BELIEVE ME. BUT THIS YEAR HAS BEEN FILLED WITH VERY DIFFICULT CONVERSATIONS AND VERY DIFFICULT DECISIONS. >> Zanoni: WE MADE THOSE DECISIONS WITH THE COUNCIL'S INPUT. WE WENT THROUGH THE BUDGET PROCESS AND WE PROBABLY DID REDUCE THE NUMBER OF VEHICLES THAT WE WOULD BE BUYING. BECAUSE WE HAVE ELIMINATED WHOLE DEPARTMENTS IN THIS BUDGET. AND SO WE HAVE LESS EMPLOYEES. THE DECISION TO NOT BUY A VEHICLE I WOULD RECOMMEND BE DONE IN THE CONTEXT OF THE ENTIRE BUDGET DEVELOPMENT PROCESS. THAT TAKES MONTHS. I WOULDN'T RECOMMEND DOING SOMETHING LIKE THAT IN ISOLATION. TO SAVE MONEY WE MAY HAVE HAD A BETTER OPTION AND WE RECOMMENDED THAT DURING THE BUDGET DEVELOPMENT PROCESS. TO TRY TO SAVE MONEY NOW OUTSIDE OF THAT PROCESS IS GOOD BUT IT COULD -- IT'S OUT OF CONTEXT. IT DOESN'T HAVE ANYTHING TO COMPARE IT TO. LIKE SHOULD WE ELIMINATE A PARTICULAR FUNCTION THAT WE DON'T NEED TO DO ANYMORE. THAT TYPE OF THING. >> Paxson: I ACKNOWLEDGE THOSE EFFORTS, I DO. WE TALKED AT LENGTH ABOUT IT. I KNOW THAT THERE WAS SOME ROLES THAT WE HAD ATTEMPTED TO AUTHORIZE TO EXPAND OUR COMPLEMENTS IN DIFFERENT DEPARTMENTS. ARE THESE NUMBERS REFLECTIVE OF THOSE ROLES THAT WE DID NOT ULTIMATELY ADD? >> Zanoni: YES, THEY ARE. THIS REFLECTS THE DEPARTMENTS AND THE POSITIONS THAT ARE OUT THERE TODAY. SO IF WE ELIMINATED -- WHICH WE DID -- POSITIONS THAT MAY HAVE HAD A VEHICLE, THEN WE'RE NOT REPLACING THE VEHICLE. WE PROBABLY REALLOCATED IT OR SOLD IT. >> Paxson: OKAY. THANK YOU, GUYS. >> Zanoni: SO OVER A MILLION IS FOR POLICE AND THEN THE SECOND BIGGEST BUY IS FOR WATER/WASTEWATER. IF YOU READ IN THE DESCRIPTIONS, IT'S HERE. BUT A LOT OF IT IS FOR MAINTENANCE. SO MAINTENANCE OF THE SYSTEM. SO IF THE VEHICLE DOESN'T RUN WHEN THE CREW COMES IN, THEN WE'RE NOT MAINTAINING THE SYSTEM. YOU HAVE OTHER PROBLEMS, OTHER THAN HAVING LESS WATER. WE'LL HAVE ISSUES WITH, YOU KNOW, WASTEWATER AND WATER PRESSURE AND ALL THAT. >> YES, SIR. IF I MAY, THE BUDGET INITIATIVE FOR THOSE VEHICLES, MA'AM, FOR ALSO ATTACHED WITH FTEs. FTEs YOU HAVE EMPLOYEES WAITING FOR THIS VEHICLE TO COME IN TO PROCEED WITH THEIR SERVICES. >> Mayor Guajardo: THANK YOU. COUNCILMAN BARRERA. >> Barrera: I JUST WANT TO REITERATE -- THANK YOU, MAYOR. SO REMIND ME AGAIN, FOR THE PUBLIC, HOW MANY ARE GOING TO CCW. >> I'LL GIVE YOU THAT NUMBER RIGHT NOW ACCURATELY. >> Zanoni: IT'S OVER A MILLION DOLLARS COUNCILMAN. >> Barrera: HOW MANY VEHICLES. >> I HAVE IT RIGHT HERE. WE HAVE -- >> Zanoni: IT'S ABOUT A DOZEN. NOT EVEN THAT. >> IT'S ACTUALLY EIGHT, SIR. >> Zanoni: IT'S HEAVY EQUIPMENT. A FREIGHTLINER -- >> Barrera: WHAT'S THE CURRENT MILEAGE OR HOW OLD ARE THE OTHER VEHICLES? >> I CAN BREAK THAT DOWN FOR YOU SIR. THE HOUSTON FREIGHTLINER IS A CREW CAB TRUCK. THAT'S IN ADDITION. WE HAVE ONE THAT'S REPLACING A UNIT THAT'S ABOUT TO EXCEED THEIR SERVICE LIFE BY 12 MONTHS, BY THE TIME THAT VEHICLES GETS IN, THAT VEHICLE IS PASSED ITS SERVICE LIKE. AN M 2106 EXTENDED CAB. THE FREIGHTLINER IS A WASTEWATER VECTOR. THAT'S WAITING ON THE VEHICLE TO COME IN AND THAT'S FOR THE MAINTENANCE OF THE CITY'S 107 LIFT STATIONS. >> Zanoni: THIS BUDGET INCLUDED ADDITIONAL MAINTENANCE TEAMS IN CCW. SO WE ADDED THE POSITIONS BUT YOU GOT TO BUY THE VEHICLE. >> YES, SIR. >> Zanoni: IT'S $691,000 FOR ONE OF THESE BIG FREIGHTLINER TRUCKS. >> AND WE'RE STILL ABLE TO PURCHASE THIS OUTRIGHT WITH THE FUNDING WE HAVE. IT'S WORTH MENTIONING THAT LAST YEAR WHEN I CAME UP HERE I SPOKE ABOUT THE AUCTION WHEN WE WERE SUPPOSED TO TAKE VEHICLES TO BE AUCTIONED OUT. THOSE PROCEEDS WERE APPROXIMATELY $1.4 MILLION THAT WENT BACK INTO THE VERF FUND. >> Barrera: GREAT JOB. TELL ME A LITTLE BIT MORE ABOUT THE SAME SITUATION WITH REGARD TO THE VEHICLES FOR THE POLICE DEPARTMENT. WHAT HAS BEEN -- HAVE WE EXTENDED THEIR NORMAL UTILIZATION. >> ABSOLUTELY. I CAN BREAK THAT DOWN FOR YOU. SO FOR THE POLICE STATION, THEIR CURRENT FLEET OF 118 VEHICLES THAT ARE UNMARKED, 50 WERE PURCHASED BETWEEN 2011 AND 2016. SO THEY HAVE EXCEEDED THEIR SERVICE LIFE. A LOT OF THOSE VEHICLES HAVE EXCEEDED THEIR REPAIR COST BASED ON THE COST OF THE VEHICLE WHEN WE PURCHASED IT BACK THEN. SO THEY NEED THOSE VEHICLES DESPERATELY TO GET THOSE VEHICLES BACK UP TO MORE MODERNIZATION OR MORE MODERN VEHICLES FOR THAT FLEET. >> Barrera: YOU TIGHTENED THAT BELT FOR TEN YEARS. >> WE DID. COVID-19 PLAYED A BIG PART OF THAT. WE WERE UNABLE TO GET THOSE VEHICLES DURING THAT TIME-FRAME. NOW WE'RE JUST CATCHING UP WITH PD VEHICLES, ESPECIALLY THEIR UNMARKED UNITS. >> Barrera: THIS HAS BEEN IN THE CIP FOR HOW LONG? THIS HAS BEEN BUDGETED FOR HOW LONG? WHEN WE DID THE BUDGET? >> Zanoni: SINCE LAST SEPTEMBER. SEPTEMBER 2025. >> Barrera: THAT PROBABLY WOULD HAVE BEEN THE TIME TO REVIEW IT. WE KNEW WHAT WAS COMING UP. WE KNOW THE SITUATION OF THE CONSEQUENCES OF US, IN PARTICULAR EXTENDING THE HOMESTEAD EXEMPTION AND INCREASING THAT AMOUNT. I MEAN, WE OBVIOUSLY KNEW WHERE THAT WAS AND THAT'S WHERE THE BUDGET WAS AT THAT TIME. I GUESS THE THING IS THAT EXPLAIN A LITTLE BIT MR. RIVERA OR PETER. SAVING THESE FUNDS THIS YEAR, WOULD THEY BE -- WE WOULD HAVE TO LOOK AT THE POLICY TO REAPPROPRIATE IT ELSEWHERE? BUT COULD THEY GO TO WATER? >> Zanoni: DID YOU SAY BONDS, COUNCILMAN? >> Barrera: NO. THESE FUNDS THAT ARE APPROPRIATED. OBVIOUSLY, WHERE ELSE WOULD THE OPPORTUNITY FOR THOSE FUNDS GO IF YOU WOULD HAVE TO PRESENT TO US TO CHANGE A POLICY. I MEAN, I'M QUITE CONFIDENT WE COULDN'T UTILIZE THEM FOR A WATER PROJECT. >> THAT'S A GREAT QUESTION, SIR. WHENEVER WE ACQUIRE A VEHICLE, THAT VEHICLE GETS, PER SE, ALLOCATION. THE DEPARTMENT THAT PURCHASES THE VEHICLE, THEY HAVE TO ALLOCATE FUNDS ANNUALLY TO GO INTO THE POT OF MONEY IN ORDER TO REPLACE THAT VEHICLE SEVEN, TEN YEARS FROM NOW. EACH DEPARTMENT HAS THEIR FUND BALANCE. ACCORDING TO WHAT WE CURRENTLY HAVE ON POLICY RIGHT NOW, IF CCW HAS APPROPRIATED -- THIS IS JUST A FIGURE OF A NUMBER. $20MILLION IN THE PAST TEN YEARS, THAT $20 MILLION IS SUPPOSED TO BE USED FOR CCW REPLACEMENT VEHICLES AND EQUIPMENT. >> Barrera: SO THIS IS A COMPONENT OF BASICALLY THE FUND BALANCE OF THE POLICY THAT WE HAVE TOWARDS THE FUND BALANCE? >> YES. >> Barrera: GO AHEAD. I'M A LAYMAN. >> Zanoni: TO ADD ON TO WHAT JUAN SAID. THE WATER AND WASTEWATER ARE A UTILITY AND THE RATE WE CHARGE THE CUSTOMERS PAYS FOR THE BUSINESS. SO THERE'S SOME GENERAL FUND DOLLARS HERE. POLICE IS A GENERAL FUND, PROPERTY, SALES TAX-SUPPORTED OPERATIONS. THAT GOES TO YOUR FIRST QUESTION, WHICH IS WOULD YOU TAKE THE GENERAL FUND AND GIVE IT TO THE WATER DEPARTMENT TO DO WATER PROJECTS. THE ANSWER IS PROBABLY NO. YOU WOULDN'T DO THAT. >> Barrera: I GUESS ASSET MANAGEMENT IS JUST MANAGING THAT. SOME OF THEM ARE WATER FUNDS THAT COME FROM THE UTILITY. HOWEVER, THOSE FUNDS, ONCE AGAIN THEY PROHIBIT US FROM BEING ABLE TO DO OUR JOB, TO PROVIDE THE SERVICE OF THE WATER. >> Zanoni: SOME OF THESE VEHICLES WERE BRAND NEW TO SUPPORT A NEW TEAM THAT WAS ADDED TO INCREASE MAINTENANCE. SOMETHING WE TALKED ABOUT LAST WEEK. YOU KNOW, WE HAVE TO MAINTAIN OUR SYSTEMS BETTER. >> Barrera: OF WHICH RIGHT NOW WE'RE AUGMENTING ALL OUR ASSETS. I MEAN, TO EXPEDITE THEM QUICKLY BECAUSE OF THE CHALLENGE THAT WE HAVE. MY OPINION, WE SHOULD HAVE THE EQUIPMENT TO BE ABLE TO DO SO. WELL, THANK YOU VERY MUCH. I APPRECIATE THAT. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: THANK YOU. I HAD SOME CONCERNS AROUND THE TOYOTA HYBRIDS. WE WENT AWAY FROM NATURAL GAS VEHICLES BECAUSE WE HAD AN ISSUE WITH RESALE VALUE OF THOSE PARTICULAR VEHICLES. HYBRIDS, BECAUSE OF THE NATURE OF THEIR BATTERY, YOU KNOW, ARE NOT AS VALUABLE FOR RESALE. HAVE YOU DONE THE ANALYSIS TO DETERMINE THE GAS SAVINGS PLUS THE HIGHER COST OF THE VEHICLE VERSUS THE RESALE VALUE. HAVE YOU DONE THAT ANALYSIS TO DETERMINE THIS IS THE BEST VEHICLE? >> I HAVEN'T DONE THAT ANALYSIS BUT I WILL LET MY ASSISTANT DIRECTOR, WHO HAS BEEN WITH THE DEPARTMENT FOR A WHILE, HE HAS DONE THAT ANALYSIS. >> Hernandez: OKAY. >> RUSSELL DEAN, ASSISTANT DIRECTOR FOR FLEET. KIND OF NERVE RACKING BEING UP HERE BUT I'LL ANSWER YOUR QUESTION AS BEST I CAN. THE ANALYSIS HE'S TALKING ABOUT, WE DID A STUDY FOR ELECTRIC VEHICLES AND THAT NATURE, NOT NECESSARILY HYBRID VEHICLES. HOWEVER, YOUR QUESTION IS BASED ON WHETHER OR NOT WE'RE GOING TO GET AS MUCH MONEY BACK OFF THE HYBRID VEHICLES AND RESALE AND THE TOTAL COST OF OWNERSHIP. THE ANSWER TO THAT QUESTION IS KIND OF AN UNKNOWN AT THIS POINT. WE DON'T HAVE ANY OF THESE VEHICLES IN OUR FLEETS. WE HAVE SOME HYBRIDS BUT WE DON'T HAVE ANY THAT HAVE GONE TO AUCTION. IN TERMS OF GAS MILEAGE, THOSE VEHICLES WILL RETURN A BETTER RATE FOR GAS MILEAGE. AS FAR AS THE OVERALL, HEY, ARE WE GOING TO GET MORE MONEY FOR THIS VEHICLE, WE DON'T KNOW THE ANSWER YET BECAUSE WE DON'T KNOW WHAT WE'RE GOING TO GET AT AUCTION FOR THEM. >> Hernandez: THAT'S THE QUESTION AT HAND IS YOU HAVE TO HAVE AN UNDERSTANDING OF WHAT YOU'RE GOING TO BE SPENDING VERSUS WHAT YOU'RE GOING TO GET BACK. YOU KNOW, WHAT I'VE SEEN OVER THE LIFE SPAN OF A VEHICLE THAT WE OWN THESE VEHICLES, IS ABOUT $1500 IN FUEL SAVINGS, DEPENDING ON THE PRICE OF FUEL. THE LOWER THE FUEL COST, THE LESS SAVINGS YOU HAVE. AND THEN ON THE FLIP SIDE, IS THIS A DESIRABLE VEHICLE ON THE RESALE MARKET. THESE THINGS HAVE BATTERY LIVES AND THE BATTERY LIFE -- REPLACE THE BATTERY IS VERY EXPENSIVE. >> THE GOOD THING ON THESE ARE THESE ARE NOT PURE ELECTRIC, THEY'RE HYBRIDS. THE ELECTRIC KICKS IN -- IT STARTS OFF AS ELECTRIC AND KICKS IN AS A FOUR CYLINDER. >> Hernandez: RIGHT. I UNDERSTAND THAT. LIKE I SAID, I LOOKED AT THE HYBRID RESALE VALUE VERSUS GAS VEHICLES AND THERE ARE SOME CHALLENGES HERE. SO YOU NEED TO DO THESE ANALYSIS AHEAD OF TIME BEFORE YOU ASK US TO SPEND A BUNCH OF MONEY ON IT. BECAUSE THE HYBRIDS COST MORE THAN THE GAS VEHICLE. >> IN THIS CASE, NOT WHAT WE CAN GET ON THE MARKET, NO, SIR. >> Hernandez: I DON'T KNOW. I DON'T HAVE A COMPARISON OF WHAT YOU CAN GET FOR THE GAS VEHICLE. YOU KNOW, GIVE US THE INFORMATION WE NEED TO MAKE GOOD DECISIONS. BECAUSE WE'RE BUYING 34 OF THEM? 36? >> 36. >> Hernandez: 36 VEHICLES. THAT'S A SIGNIFICANT AMOUNT OF MONEY. COUNCILWOMAN PAXSON TALKED ABOUT THIS IS A LOT OF MONEY AND WE HAVE CHALLENGES. SO, YOU KNOW, WE WANT TO MAKE SURE WE GET THE BEST DEAL FOR THE MONEY WE'RE SPENDING. SO THE MORE INFORMATION YOU PROVIDE US, THE BETTER OFF WE'LL BE. >> ABSOLUTELY. YES SIR. I LOOKED ONLINE YESTERDAY FOR TOYOTA CAMRYS AND ANYTHING I CAN FIND RIGHT NOW, LOCAL ONLINE WAS A LITTLE BIT MORE EXPENSIVE THAN WHAT WE'RE PAYING FOR THESE VEHICLES CURRENTLY. >> Hernandez: YES BUT WE GO THROUGH BUY BOARD, AND WE GET THAT GROUP DISCOUNT OR VALUE DISCOUNT FOR BUYING LARGE NUMBERS. >> CORRECT. >> Hernandez: APPLES TO APPLES. THANK YOU. >> Mayor GUAJARDO: >> COUNCIL MEMBER, IF I MAY ADD TO THAT COMMENT ABOUT THE RESALE VALUE. I JUST WANT TO BE CAREFUL WITH PURCHASING A VEHICLE AND DISCONTINUING THE VEHICLE'S USE BECAUSE WE CAN GET MORE MONEY AT AUCTION. WE REALLY WANT TO MAXIMIZE THE USAGE OF THESE VEHICLES. WHENEVER THEY COME IN, WE REALLY WANT TO PAY ATTENTION TO THE REPAIR COSTS, THE MAINTENANCE COSTS, THE USAGE, AND THE CURRENT CONDITION OF THAT VEHICLE. WE REALLY DON'T THINK ABOUT THE RESALE VALUE, TO BE COMPLETELY HONEST. THAT'S SOMETHING THAT WE JUST WANT TO MAXIMIZE THE USE OF EACH VEHICLE THAT COMES MANY. WE WANT TO STEER AWAY FROM HAVING OUR MECHANICS TRY TO OFFLOAD A VEHICLE BECAUSE WE CAN GET MORE MONEY IN THE LONG RUN. >> Hernandez: I USED THAT AS A COMPONENT OF THE OVERALL ANALYSIS. YOU HAVE THE COST OF THE VEHICLE, THE FUEL SAVINGS, THE MAINTENANCE COST, AND RESALE VALUE. IT'S JUST ONE COMPONENT OF THE OVERALL VALUE OF THE VEHICLE, NOT THE ONLY DECISION-MAKING FACTOR. IF YOU TOOK THAT AS ME SAYING THAT'S THE MAIN FACTOR, IT'S NOT. YOU'VE GOT TO DO THE FINANCIAL ANALYSIS TO DETERMINE WHAT THE BEST VEHICLE TO GET AT THE PRICE. >> Mayor Guajardo: I'LL GO AHEAD AND ENTERTAIN A MOTION TO APPROVE ITEM NO. 11. >> Barrera: I MOVE FOR APPROVAL. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. THANK YOU, MR. RAMIREZ. OKAY. THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEMS 25 THROUGH 27 PER TEXAS GOVERNMENT CODE SECTIONS 551.071, 551.072, AND 551.074. IT'S 2:21. WE WILL RETURN. [EXECUTIVE SESSION] [EXECUTIVE SESSION] >> Mayor Guajardo: GOOD AFTERNOON EVERYONE. IT'S 4:56 AND WE ARE BACK FROM EXECUTIVE SESSION. WE ARE -- WE DO HAVE A MOTION TO MAKE. IMMEDIATELY AFTER WE ARE GOING TO GO BACK INTO EXECUTIVE SESSION TO FINISH SOME BUSINESS AND THEN WE WILL COME BACK OUT TO COMPLETE THE AGENDA BUSINESS. >> Scott: MAYOR, I WOULD LIKE TO MAKE A MOTION ON ITEM 27, WHICH INCLUDES A RESOLUTION AUTHORIZING THE PUBLIC RELEASE OF AN EXECUTIVE SUMMARY OF THE INVESTIGATION INTO HOMEWOOD SUITES TYPE B INCENTIVE, PROCEDURAL AND FRAUD REVIEW. THAT INCLUDES THE STATEMENTS -- THE CITY COUNCIL HEREBY AUTHORIZES THE RELEASE OF THE EXECUTIVE SUMMARY FOR THE HOMEWOOD SUITES TYPE B INCENTIVE, PROCEDURAL, AND FRAUD REVIEW AS ATTACHED TO THE GENERAL PUBLIC. AND THE CITY COUNCIL HEREBY AUTHORIZES THE RELEASE OF APPENDIX J, GOVERNANCE REFORMS, AS ATTACHED TO THE GENERAL PUBLIC. AND THE CITY COUNCIL DOES NOT WAIVE ITS ATTORNEY-CLIENT CONFIDENTIALITY FOR THE DRAFT SUMMARY REPORT AND SUPPORTING DOCUMENTS. AND FINALLY, THIS RESOLUTION SHALL BECOME EFFECTIVE IMMEDIATELY UPON ITS PASSAGE AND APPROVAL NOW. >> I SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. COUNCILMAN CANTU. >> Cantu: I KNOW YOU SAID WE'RE GOING TO BE GOING BACK TO EXECUTIVE SESSION. IS THERE ANY POSSIBLE WAY THAT WE COULD HEAR THE POLICE DEPARTMENT INVESTIGATION REPORT SO THEY WON'T BE WAITING HERE ALL DAY? >> Mayor Guajardo: TODAY IS GOING TO BE A WAITING GAME. THE REASON IS BECAUSE WE ALSO HAVE AQUALIA HERE AND THEY'RE ALSO WAITING. WE CAN'T MOVE AROUND TOO MUCH ON THE AGENDA BECAUSE IN ORDER TO GET TO CERTAIN WATER ITEMS, ONE PARTICULAR ONE HAS TO COME FIRST. AND I KNOW THERE'S GOING TO BE QUITE A BIT OF DISCUSSION ON THAT ONE. >> Cantu: SORRY, GUYS. >> Mayor Guajardo: SORRY, GUYS. GET COMFY. OKAY. SO AT THIS TIME, WE SAID THE MOTION CARRIES. >> City Secretary: YES, MA'AM. COUNCIL MEMBER ROY ABSTAINED, FOR THE RECORD. >> Mayor Guajardo: THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION -- >> [OFF MIC] >> Mayor Guajardo: OH, GOODNESS. I AM SO SORRY. YES. I AM SO SORRY, MR. RAY. COULD YOU PLEASE COME FORWARD? >> MY NAME IS DANIEL RAY. I AM GOING TO GO OVER THE THINGS THAT YOU JUST VOTED TO RELEASE. JUST FOR QUICK BACKGROUND, I AM FROM A FIRM IN DFW AREA. A FEW MONTHS AGO THE CITY COUNCIL HIRED MY FIRM TO DO AN OUTSIDE COUNSEL INVESTIGATION INTO THE HOMEWOOD SUITES ALLEGATIONS. AS YOU ALL KNOW THAT CASE IS CURRENTLY THE SUBJECT OF A LAWSUIT THAT'S PENDING IN COURT. THIS INVESTIGATION WASN'T DESIGNED TO BE ADMISSIBLE IN COURT BUT IT DOES RELATE TO THE REAL BASIC UNDERLYING ISSUES AND ALLEGATIONS IN THAT LAWSUIT. IN FRONT OF YOU YOU HAVE AN EXECUTIVE SUMMARY THAT YOU'VE CHOSEN TO WAIVE PRIVILEGE ON AND RELEASE. I'M GOING TO GO OVER THAT. IT'S TWO PAGES LONG. AS PART OF OUR LONGER REPORT, WE INCLUDED A NUMBER OF APPENDICES, ONE OF WHICH WAS APPENDIX J, WHICH INCLUDED SEVERAL SUGGESTIONS FOR GOVERNANCE CHANGES RELATED TO FUTURE DEVELOPMENT AGREEMENTS AND OTHER TYPES OF AGREEMENTS THAT COME BEFORE THE COUNCIL FOR TWO READINGS. AND SO WHAT I'M GOING TO DO NOW IS GO OVER OUR GENERAL FINDINGS HERE. AND THESE ARE THE OPINIONS OF MY LAW FIRM WHO ARE REVIEWING THOUSANDS OF PAGES OF EVIDENCE, HAVING LENGTHY DISCUSSIONS WITH BOTH SETS OF ATTORNEYS ON THE PLAINTIFF AND DEFENSE SIDE, AND TALKING WITH VARIOUS MEMBERS OF THE CITY STAFF AND OTHER OUTSIDE WITNESSES, OVER ABOUT A FOUR AND A HALF OR FIVE-MONTH PERIOD. ALL OF IT BASICALLY BOILS DOWN TO A COUPLE OF HIGH-LEVEL POINTS. I'M GOING TO GO OVER THOSE RIGHT NOW. THE PURPOSE OF THE REPORT THAT THE COUNCIL ASKED FOR WAS FOR AN INDEPENDENT LEGAL REVIEW TO DETERMINE THREE BASIC THINGS. NUMBER ONE, WHETHER THE COUNCIL APPROVAL OF THE $2 MILLION TYPE B INCENTIVE FOR HOMEWOOD SUITES WAS PROCURED THROUGH FRAUD, FORGERY, OR OTHER CRIMINAL CONDUCT. NUMBER TWO, WHETHER THE ORDINANCE AUTHORIZING THE INCENTIVE WAS PROCEDURALLY DEFECTIVE UNDER THE CITY CHARTER OF TEXAS LAW. NUMBER THREE, WHAT CORRECTIVE OPTIONS, IF ANY, ARE AVAILABLE TO THE COUNCIL. THIS EXECUTIVE SUMMARY IS JUST GOING TO GO INTO THE BAREST LEVEL OF DETAIL ON THE FINDINGS OF THOSE. THE LONGER DRAFT REPORT INCLUDES THE LOGIC AND THE REASONING AND ALL OF THE DOCUMENTS BEHIND ALL OF THESE SHORT STATEMENTS. BUT THE BACKGROUND OF THIS, AS WE ALL KNOW, IS THAT THE TYPE B CORPORATION APPROVED AN INCENTIVE WITH HOMEWOOD SUITES FOLLOWING REVIEW BY THE CCREDC. AND THEN SUBSEQUENT CITY COUNCIL ACTION ON TWO DIFFERENT READINGS. AFTER THE APPROVAL, ALLEGATIONS WERE RAISED THAT A POWERPOINT SLIDE SHOWN DURING THE PROJECT'S REVIEW PROCESS CONTAINED A MODIFIED SCREENSHOT OF A FEMA PRESS RELEASE RELATING TO FLOOD MAP FINALIZATION DATES. THE CITY AUDITOR CHARACTERSIZED THE ALTERATION AS POTENTIALLY CONSTITUTING FELONY FORGERY. A LAWSUIT FOLLOWED AND THE CITY COUNCIL AUTHORIZED AN INTERNAL INVESTIGATION. THE QUESTION BEFORE THE COUNCIL NOW ARE NOT POLITICAL BUT LEGAL. NUMBER ONE, DID THE ALTERED SLIDE LEGALLY CONSTITUTE FRAUD OR FORGERY? NUMBER TWO, DID THE ALTERATION INVALIDATE THE ORDINANCE? NUMBER THREE, WAS THE TWO-READING RULE VIOLATED? AND NUMBER FOUR, WHAT CORRECTIVE ACTION COULD BE TAKEN? THE CORE FINDINGS ARE UNDER NUMBER ONE THAT THERE WAS NO PROSECUTABLE CRIMINAL FRAUD OR FORGERY THAT'S BEEN ESTABLISHED. AFTER REVIEW OF THE PRESENTATIONS DEPOSITION TESTIMONY INVESTIGATIVE MATERIALS, AND APPLICABLE TEXAS AND FEDERAL PENAL STATUTES, THE POWERPOINT SLIDE AT ISSUE APPEARS TO HAVE BEEN INTENTIONALLY ALTERED TO COVER THE DATES THAT APPEAR IN THE GOVERNMENT WEBSITE. HOWEVER, THE EVIDENCE DOES NOT ESTABLISH THE ELEMENTS REQUIRED TO SUSTAIN A CRIMINAL CHARGE OF FORGERY OR FRAUD. SPECIFICALLY, THE SLIDE AT ISSUE IS NOT ITSELF AN OFFICIAL GOVERNMENT DOCUMENT. THERE WAS A PRESENTATION SLIDE INCORPORATING A SCREENSHOT. THERE'S NO EVIDENCE THAT THE CITY COUNCIL RELIED THAT THE ALLEGEDLY-ALTERED FEMA DATE, WHEN VOTING ON THE ORDINANCE. I'M SORRY. RELIED ON THAT ALTERED DATE. FRAUD REQUIRES MATERIAL MISREPRESENTATION AND A SECOND ELEMENT DETRIMENTAL RELIANCE AND THE RECORD REFLECTS THAT THE CITY WAS AWARE OF THE FEMA TIMING DISPUTE BEFORE THE FINAL APPROVAL. ALTHOUGH IT'S NOT DIRECTLY APPLICABLE TO THE QUESTION OF WHETHER A CRIME ACTUALLY OCCURRED, MULTIPLE LAW ENFORCEMENT AUTHORITIES HAVE CLOSED THEIR INVESTIGATIONS INTO THIS MATTER WHILE DECLINING TO ISSUE CRIMINAL REFERRALS OR PROSECUTE ANYONE INVOLVED. THE RECORD MAY REFLECT POOR JUDGMENT IN PRESENTATION PRACTICES UP TO AND INCLUDING INTENTIONAL ALTERATION IN ONE OF THE SLIDES. BUT THE LEGAL THRESHOLD FOR CRIMINAL FRAUD AND FORGERY IN A CRIMINAL SETTING HAS NOT BEEN MET. NUMBER TWO. THE TWO-READING RULE WAS SATISFIED. THE CITY CHARTER REQUIRES ORDINANCES TO BE CONSIDERED AT TWO SEPARATE MEETINGS UNLESS ADOPTED AS AN EMERGENCY MEASURE. THE ORDINANCE IN QUESTION, NUMBER ONE, WAS INTRODUCED AND APPROVED ON FIRST READING. NUMBER TWO, WAS CONSIDERED APPROVED ON SECOND READING AT A LATER REGULAR MEETING. AND NUMBER THREE, CONTAINED A MODIFIED CAPTION IN THE SECOND READING. THAT THE BODY OF THE ORDINANCE DID NOT CHANGE. UNDER TEXAS LAW THAT IT APPLIES TO CITIES IN THIS SPECIFIC TYPE OF SITUATION, THE OPERATIVE LEGAL SUBSTANCE OF AN ORDINANCE IS CONTAINED IN THE BODY, NOT IN THE CAPTION. AMENDING DESCRIPTIVE LANGUAGE IN THE CAPTION DOES NOT RESET THE TWO-READING REQUIREMENT UNLESS THE SUBSTANTIVE PROVISIONS ALSO CHANGE. ACCORDINGLY, WE BELIEVE THAT THE ORDINANCE WAS PROPERLY ADOPTED UNDER THE CITY CHARTER. NUMBER THREE. THE INCENTIVE WAS BASED ON ECONOMIC DEVELOPMENT CRITERIA, NOT FEMA TIMING. THE TYPE B CORPORATION IS STATUTORILY OBLIGATED TO EVALUATE PROJECTS BASED ON ECONOMIC DEVELOPMENT IMPACT, INCLUDING JOB CREATION, CAPITAL INVESTMENTS, AND TAX BASE ENHANCEMENT. THE FEMA FLOODPLAIN ISSUE WAS PRESENTED AS PART OF THE INFRASTRUCTURE COST JUSTIFICATION BUT, NUMBER ONE, FEMA COMPLIANCE IS A DEVELOPMENT REQUIREMENT, NOT A CONDITION FOR TYPE B ELIGIBILITY. NUMBER TWO, THE PROJECT'S ELIGIBILITY RESTED PRIMARILY ON ECONOMIC DEVELOPMENT METRICS. NUMBER THREE, THE FINAL COUNCIL ACTION CLARIFIED THAT THE FUNDING RELATED TO PUBLIC FUNDING IMPROVEMENTS AND CATALYTIC IMPACT. THEREFORE, EVEN IF THE FEMA TIMELINE PRESENTATION WAS IMPERFECT OR ALTERED ON PURPOSE, IT WAS NOT LEGALLY DETERMINATIVE OF THE FUNDING DECISION ITSELF. NUMBER FOUR, OPEN MEETINGS ALLEGATIONS LACK LEGAL SUPPORT. I PUT THIS IN HERE BECAUSE AS PART OF THE INITIAL INVESTIGATION, THERE WERE QUITE A FEW ALLEGATIONS THAT THERE WERE OPEN MEETINGS ISSUES AND SO WE LOOKED INTO THOSE AS WELL. THE EVIDENCE DOES NOT DEMONSTRATE A VIOLATION OF THE OPEN MEETINGS ACT THAT WOULD RENDER THE ORDINANCE ITSELF VOID OR EVEN VOIDABLE. NO EVIDENCE ESTABLISHES A QUORUM DELIBERATING OUTSIDE OF A PROPERLY-NOTICED MEETING NOR EVIDENCE OF ANY SECRET DECISION MAKING. POLITICAL DISCUSSION AMONG OFFICIALS DOES NOT AUTOMATICALLY EQUATE TO A LEGAL OPEN MEETINGS VIOLATION, ABSENT PROOF OF A COLLECTIVE DELIBERATION IN VIOLATION OF THE STATUTE. LAST, THE COUNCIL HAS THREE PRACTICAL OPTIONS REGARDING THE ORDINANCE AT ISSUE. NUMBER ONE, TO RESEND IT. NUMBER TWO, TO RATIFY AND AFFIRM IT. OR, NUMBER THREE, TAKE NO ACTION RIGHT NOW AND WAIT FOR THE PENDING LITIGATION TO BE COMPLETED. EACH OF THOSE OPTIONS COMES WITH ITS OWN UNIQUE SET OF RISKS AND EXPOSURES TO THE CITY. THE OVERALL CONCLUSION IS BASED ON THE RECORD THAT WE REVIEWED AND THE WITNESSES THAT WE INTERVIEWED, THE EVIDENCE DOES NOT ESTABLISH CRIMINAL FRAUD OR FORGERY. THE TWO-READING RULE WAS SATISFIED AND THE ORDINANCE IS LEGALLY VALID. THE GREATEST LEGAL EXPOSURE FOR THE CHOICES THAT I JUST MENTIONED, THE THREE DIFFERENT OPTIONS THAT YOU'VE GOT, ARISES FROM RESCINDING THE AGREEMENT AFTER ITS APPROVAL. THE DRAFT 30-PAGE REPORT IN THE APPROXIMATELY 5,000-PAGE INDEX INCLUDES SEVERAL OTHER OPTIONS TO ADDRESS SIMILAR SITUATIONS MOVING FORWARD, INCLUDING SEVERAL POTENTIAL RULE CHANGES RELATED TO THE TWO-READING RULE AND COUNCIL PRESENTATION. NOW, THERE ARE FIVE SEPARATE PROPOSED OR SUGGESTED GOVERNMENT REFORMS THAT WERE INCLUDED IN THAT REPORT IN APPENDIX J. AND ALL FIVE OF THESE ARE SUGGESTIONS THAT DON'T DIRECTLY DEPEND ON OR RELATE TO THE THREE OPTIONS THAT THE COUNCIL HAS TO MOVE FORWARD. THESE ARE INDEPENDENT OF THAT CHOICE AND ARE OVERALL CHANGES THAT WOULD HAVE CREATED A DIFFERENCE IN THE ELEMENTS OF REVIEW THAT THE COUNCIL HAS HERE AND WOULD HAVE CREATED A DIFFERENT SITUATION WITH DIFFERENT CHOICES FOR THE COUNCIL TO MAKE. NONE OF THESE ARE IN FINAL FORM BUT I UNDERSTAND THE COUNCIL HAS TASKED THE CITY MANAGER WITH A REVIEW OF THESE AND IMPLEMENTATION OVER TIME IN WHATEVER WAY MAKES SENSE. NUMBER ONE IS DOCUMENT PROVIDENCE RULE. IT'S A FANCY WORD THAT MEANS WE HAVE PAPERWORK THAT PROVES IT'S REAL. THAT CAN REQUIRE THAT ANY SCREENSHOT OR EXCERPT OF A THIRD-PARTY GOVERNMENT WEBSITE , IF IT'S USED TO JUSTIFY GOVERNMENT FUNDING, HAS TO BE ACCOMPANIED BY A URL, DATE AND TIME OF THE CAPTURE, AND A PDF PRINTED FILE OF THE FULL PAGE. AND THEN STAFF VERIFICATION NOTE CONFIRMING THAT THAT INFORMATION WAS CHECKED BY STAFF IN AN INDEPENDENT WAY SO THAT A SITUATION WITH AN ALTERED DATE CAN'T EASILY HAPPEN AGAIN. SUGGESTION NUMBER TWO. APPLICANT CERTIFICATION TAILORED TO REPRESENTATIVES. THE SUGGESTION IS TO ADD A SWORN CERTIFICATION CLAUSE IN INCENTIVE APPLICATIONS THAT SPECIFICALLY COVERS THE ACCURACY OF ALL REPRESENTATIONS ABOUT REGULATORY TIMING, ELIGIBILITY PRACTICES, AND ANY CLAIMED NEW REQUIREMENTS. THAT REDUCES AMBIGUITY ABOUT WHETHER THE CLAIM WAS A NARRATIVE THAT IS A TALKING POINT FOR SOMEONE ASKING FOR MONEY OR AN ACTUAL, FACTUAL ASSERTION. NUMBER THREE. STAFF VERIFICATION CHECKLIST FOR ELIGIBILITY AND NARRATIVE CLAIMS. ADOPT AN INTERNAL CHECKLIST REQUIRING STAFF TO VERIFY FIVE THINGS: ONE, STATUTORY ELIGIBILITY CATEGORIES. NUMBER TWO, WHETHER THE COSTS CLAIMED ARE ACTUALLY REIMBURSABLE. NUMBER THREE, WHETHER THE PROJECT IS COMMITTED OR ALREADY UNDER CONSTRUCTION. NUMBER FOUR, WHETHER THE APPLICATION RELIES ON EXTERNAL DOCUMENT. AND NUMBER FIVE, WHETHER ANY CORRECTIONS WERE MADE AFTER THE FIRST PUBLIC RELEASE. SUGGESTION NUMBER FOUR IS THE TWO-READING CONTINUITY MEMO. FOR ANY INCENTIVE ORDINANCE PULLED AND LATER REAGENDIZED, AS THIS ONE WAS, REQUIRE A SHORT STAFF MEMO TO THE COUNCIL DESCRIBING EXACTLY WHAT CHANGED IN THE PACKET SINCE THE FIRST READING, WHY IT CHANGED, AND WHETHER THE OPERATIVE ORDINANCE BODY CHANGED. THIS PRESERVES LEGALITY WHILE REDUCING ANY SORT OF BAIT AND SWITCH NARRATIVES OR ACTUAL BAIT AND SWITCH TACTICS BY DEVELOPERS WHO CHANGE SOMETHING MIDSTREAM. THE LAST ONE IS THE PUBLIC PACKET INTEGRITY POLICY. TO ESTABLISH A POLICY THAT IF ATTACHMENTS ARE REMOVED OR SWAPPED IN THE AGENDA PACKET, THE AGENDA COORDINATOR LOGS THE CHANGE AND THE FINAL PACKET INCLUDES A CHANGE LOG ACCESSIBLE TO THE COUNCIL AND THE PUBLIC. THIS DIRECTLY ADDRESSES THE TYPE OF ATTACHMENT REMOVAL E-MAIL TRAIL THAT BECAME CONTROVERSIAL TO THIS MATTER. THOSE FIVE REFORMS ARE COMPATIBLE WITH ANY OF THE THREE CURE OPTIONS. THE RATIFICATION, RESCISSION, OR HOLD ON AND WAIT UNTIL THE END OF THE COURT CASE . I'M SURE THERE ARE OTHER THINGS THAT COULD BE ADDRESSED BUT THOSE ARE ALL OF THE ITEMS INCLUDED IN EXHIBIT J THAT THE COUNCIL HAS CHOSEN TO RELEASE HERE PUBLICLY TODAY. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. RAY. OKAY. YEAH, COUNCILWOMAN VAUGHN. >> Vaughn: OKAY. I HAVE SOME QUESTIONS. A COUPLE OF THEM. JUST REAL QUICK. WHAT RESOURCES DID YOU USE TO COME TO THIS CONCLUSION? HOW MANY PEOPLE DID YOU INTERVIEW AND WHO WERE THEY? >> WELL, I DON'T HAVE THE LIST HERE WITH ME TODAY BUT WE -- >> Vaughn: JUST BY MEMORY. >> I'M SORRY? >> Vaughn: BY MEMORY. >> WE INTERVIEWED MOST OF THE PEOPLE FROM THE AUDITOR'S OFFICE AND MANY OF THE PEOPLE INVOLVED IN THE CITY ATTORNEY'S OFFICE. I TALKED WITH FIVE OF THE SEVEN COUNCIL MEMBERS. WE HAD EXTENSIVE MEETINGS WITH THE PLAINTIFF'S ATTORNEY. THAT WAS THE FIRST MEETING THAT WE HAD ABOUT A THREE-HOUR INITIAL CALL. AND I'VE HAD A COUPLE OF ADDITIONAL MEETINGS WITH THE ATTORNEY REPRESENTING THE CITY. AND THROUGHOUT THOSE WE WERE GIVEN OTHER PEOPLE TO TALK TO. SOME IN THE CITY, SOME SECONDARY WITNESSES. WE INTERVIEWED SEVERAL OF THOSE, SOME THAT WE DID NOT INTERVIEW ON ISSUES AND ELEMENTS THAT WERE CLEAR FROM THE PAPERWORK AND WHOSE TESTIMONY OR DISCUSSIONS WITH US WE THOUGHT WOULD NOT NECESSARILY BE RELEVANT TO THE UNDERLYING LEGAL RESEARCH OR LOGIC OF THE DECISIONS. AS PART OF THAT, WE ASKED DIFFERENT CITY DEPARTMENTS -- I THINK WE GOT DOCUMENTS FROM SIX DIFFERENT CITY DEPARTMENTS, EITHER SIX OR SEVEN. AND WE DID RECEIVE EVERY SINGLE DOCUMENT THAT WE REQUESTED AND MANY MORE. I THINK IN TOTAL THERE WAS MORE THAN 10,000 PAGES OF DOCUMENTS. WE BASICALLY DIVIDED THOSE DOCUMENTS UP AMONG THREE LAWYERS IN MY OFFICE. ME AND TWO OTHER ATTORNEYS. READ THROUGH -- SKIMMED THEM FIRST TO SEE WHAT WAS GOING TO BE RELEVANT. THEN READ THROUGH ALL OF THE RELEVANT PORTIONS. AND WE ALSO GOT COPIES OF EVERY SINGLE DOCUMENT THAT'S BEEN FILED IN THE LITIGATION. WHICH, BY ITSELF, IS MANY, MANY HUNDREDS OF PAGES. READ THAT AND READ THOSE CLAIMS, WHICH HAVE BEEN COMING PRETTY FAST AND FURIOUS FOR THE PAST COUPLE OF MONTHS, TO DETERMINE WHETHER OR NOT ANY OF THE NEW PLEADINGS ON FILE WERE GOING TO HAVE ANY IMPACT ON THE UNDERLYING POSITIONS THAT WE HAD GRAVITATED TOWARD OR WOULD BRING UP ANY SORT OF OVERARCHING POSITIONS OR DOCUMENT SETS THAT WE HADN'T YET SEEN. THEN WE WENT THROUGH THE BASIC LEGAL RESEARCH TO COME TO -- TO IDENTIFY BASICALLY WHAT THE STATE AND FEDERAL ELEMENTS ARE OF THE CLAIMED CRIMINAL ACTIVITY. THE FRAUD AND ALL OF THE -- THERE'S ABOUT EIGHT DIFFERENT FRAUD-RELATED OR FRAUD-ADJACENT CRIMINAL ALLEGATIONS THAT HAVE COME UP REPEATEDLY HERE. AND THERE ARE SOME THAT ARE NOT RELATED TO THAT AT ALL. LIKE ALTERATION OF GOVERNMENT DOCUMENT BUT NOT FOR FRAUDULENT PURPOSES, JUST FOR THE CRIMINAL SIDE OF DESTROYING A GOVERNMENT DOCUMENT AS ITS OWN SEPARATE CRIME. AND THEN WE COMPARED THOSE ELEMENTS TO THE ALLEGATIONS IN THE SUIT AND THE ALLEGATIONS WE HAD HEARD FROM ALL THE WITNESSES. AND THEN DID BASICALLY LEGAL RESEARCH ON THE REST OF THE ELEMENTS OF THE CLAIMS THEMSELVES THAT HAVE BEEN BROUGHT UP. AND THEN ANY OFFSHOOTS THAT WE COULD THINK OF FOR SECONDARY DIRECTIONS THAT THINGS MAY GO IF SOME OF THOSE ELEMENTS WERE DIRECTLY ADDRESSED IN A WAY THAT WAS SATISFACTORY TO EVERYBODY. WHAT WOULD BE THE NEXT STEP OF IF WE WERE IN THE SHOES OF ONE ATTORNEY OR THE OTHER, WHAT WOULD WE THEN CLAIM WAS A -- SOMETHING THAT MADE THAT BETTER. IF WE LOST ON SOMETHING, HOW WOULD WE SHIFT AND WHAT'S THE NEXT THING WE WOULD GO TO. AND SO SOME OF THE THINGS IN THE LONGER-FORM REPORT ARE THINGS THAT HAVEN'T EVEN BEEN DIRECTLY ASSERTED. THEY ARE THINGS THAT ARE ASKED ABOUT SORT OF FROM THE SIDE IN DEPOSITIONS OR REFERENCED. BUT WITHOUT A LOT OF WEIGHT ON THEM. AND SOME OF THE PLEADINGS FROM ONE SIDE OR THE OTHER. AFTER DOING ALL OF THAT, IT WAS A PROCESS OF GOING THROUGH AND ORGANIZING THE MAIN REPORT ITSELF IN AN EASY TO USE WAY. INSTEAD OF DOING JUST ONE BIG NARRATIVE REPORT THAT HAD, YOU KNOW, HERE'S WHAT HAPPENED. HERE'S WHAT WE THINK ABOUT THIS AND THAT AND THIS AND THAT. WE ORGANIZED IT WITH THE FIRST HALF BEING A LITTLE BIT OF NARRATIVE AND HISTORY AND THEN BACKGROUND ON WHAT WAS DONE TO COME UP WITH THOSE CONCLUSIONS. AND THEN THE SECOND HALF WAS MEANT TO BE A MORE USABLE THING. LIKE THIS APPENDIX J, SO THERE'S ACTUALLY SOMETHING THAT COMES FROM IT RATHER THAN JUST A WRITTEN-OUT STORY OF WHAT HAPPENED. AND AN OPINION THAT GOES WITH THAT STORY. BECAUSE, WHAT I EXPECT, JUST LIKE WHAT'S HAPPENED IN THE LITIGATION AND IN THE PUBLIC-FACING SIDE OF THIS FOR MONTHS AND MONTHS NOW, THAT WHEN THERE'S ONE SIDE OR THE OTHER HAS A POSITION THAT EITHER GETS SHOT DOWN OR BECOMES LESS RELEVANT FOR SOME OTHER REASON, THAT THERE'S WAYS THAT THOSE POSITIONS CHANGE. BUT THEY ALL BASICALLY COME BACK TO THE SAME BASIC SET OF THINGS THAT HAPPENED IN THE BASIC SET OF DOCUMENTS. SO THE SECOND HALF OF THAT IS RATHER THAN ADDRESSING JUST WAS THIS FRAUD, IT IS A GUIDE TO -- FOR PEOPLE WHO DON'T HAVE ANY LEGAL BACKGROUND OR UNDERSTAND HOW A COURT IS GOING TO LOOK AT SOMETHING TO BE ABLE TO MAKE THEIR WAY THROUGH THAT ON THEIR OWN WITHOUT HAVING TO CONTINUE TO SPEND TIME AND MONEY ON OUTSIDE LAWYERS LOOKING AT IT. >> Vaughn: DID YOU REVIEW THE DEPOSITIONS? >> YES. >> Vaughn: ALL OR JUST PART? THERE WAS A LOT OF THEM. >> I CAN'T REMEMBER THE TOTAL NUMBER. I REVIEWED ALL THE ONES THAT I HAVE. >> Vaughn: YEAH. >> I THINK THERE WERE SOME DONE RECENTLY. THE MOST RECENT ONES THAT I REVIEWED WERE FROM A COUPLE OF WEEKS AGO. >> Vaughn: AND LAST QUESTION: DID THE POLICE REPORT HAVE ANY IMPACT ON YOUR REPORT? DID YOU COORDINATE WITH THEM AT ALL? >> NO, IT HAD NO IMPACT. I DIDN'T EVEN KNOW THEY WERE DOING ONE. I LEARNED ABOUT IT LATER AND HAD I DISAGREED WITH THEM, IT WOULDN'T HAVE HAD ANY IMPACT ON WHAT I WAS LOOKING AT. BECAUSE WHAT WE WERE LOOKING AT IS TWO TOTALLY DIFFERENT THINGS. THEY WERE LOOKING AT IT AS A CRIMINAL INVESTIGATION. I WAS LOOKING AT IT MORE HOLISTICALLY FROM HERE'S A PROBLEM. WHAT HAPPENED AND WHAT CAN THE COUNCIL DO ABOUT IT, WHETHER OR NOT THERE'S A CRIME. AND SO I THINK ONE OF THE ATTORNEYS IN MY OFFICE DID SPEAK WITH THE ASSISTANT CHIEF, I THINK, WHO FINALIZED THAT, BUT IT WAS AFTER THAT REPORT HAD BEEN FINALIZED. >> Vaughn: I JUST WANT THE PUBLIC TO KNOW EVERYTHING HOW YOU GOT IT. AND YOU HAVE NO CONNECTION TO ANYONE UP HERE, THE MAYOR OR ANY COUNCIL MEMBERS. >> THAT'S RIGHT. UNTIL TODAY, I HAD NEVER MET OR SEEN ANY OF YOU. WE HAVE TALKED WITH FIVE OF YOU ON THE PHONE AS PART OF THE INVESTIGATION. I NEVER MET MILES OR ANYBODY ELSE THAT WORKS AT THE CITY. I HAVE ABSOLUTELY NO CONNECTION TO THE CITY, OUTSIDE OF COMING HERE ON VACATION AS A KID. >> Vaughn: OKAY. THANK YOU. >> Risley: MAYOR, THE WITNESS HAS A PLANE TO CATCH. >> Mayor Guajardo: MR. RAY, THANK YOU VERY MUCH. APPRECIATE IT. IN THE SPIRIT OF TIME, WE ARE GOING TO GO INTO EXECUTIVE SESSION, AS I MENTIONED EARLIER, ON ITEM NO. 25 PER TEXAS GOVERNMENT CODE SECTION 551.071. WE WILL RETURN. AND IT SHOULDN'T BE TOO LONG. >> City Secretary: AND 551.074 ALSO MAYOR. >> Mayor Guajardo: OH, I'M SORRY. YES, AND 551.074. THANK YOU, REBECCA. [EXECUTIVE SESSION] >> Mayor Guajardo: IN EXECUTIVE SESSION WE WERE DISCUSSING OUR CITY SECRETARY'S EVALUATION. AND I BELIEVE WE HAVE A MOTION. >> Roy: I HAVE A MOTION TO INCREASE THE CITY SECRETARY'S BASE SALARY TO $144,273.52, ANNUALLY EFFECTIVE NEXT PAY PERIOD. >> Barrera: SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. >> BOY, THAT WAS FAST. >> Mayor Guajardo: OKAY. THE MOTION CARRIES. AT THIS TIME, WE'RE GOING TO HEAR THE BRIEFING -- I'M SORRY, THE PRESENTATION ON CORPUS CHRISTI POLICE DEPARTMENT ON FINDINGS OF THE HOMEWOOD SUITES INVESTIGATION. SO GO AHEAD. >> ALL RIGHT. THEY'RE BRINGING IT UP NOW. THAT'S IT. ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL. BILLY RELOVE DEPUTY CHIEF POLICE DEPARTMENT. WE'LL BE SPEAKING ABOUT THE INVESTIGATION OF ALLEGATIONS RELATED TO THE BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI TYPE B CORPORATION. SO THIS PRESENTATION INCLUDES RESULTS OF AN INVESTIGATION FOCUSING ON POSSIBLE STATE AND FEDERAL CRIMES ONLY. INVESTIGATION DID NOT EXAMINE ANY VIOLATION OF THE CITY CHARTER, TEXAS OPEN MEETINGS ACT, ANY CITY ETHICAL VIOLATIONS OR ANY CIVIL LAW. SO THIS IS THE AUDITOR'S LETTER YOU RECEIVED ON AUGUST 21ST, 2025, IN WHICH THE AUDITOR STATES THAT THE CITY LEADERSHIP INVESTIGATED INCLUDED THAT THE FACTS OF THE CASE CONSTITUTED A FELONY FORGERY UNDER TEXAS PENAL CODE 32 VIOLATION OF LAW. THIS IS OUR PREDICATE ALLEGATION THAT WE BEGIN OUR INVESTIGATION WITH. SO I'M GOING TO GET RIGHT INTO OUR FINDINGS. AND THE FIRST QUESTION, AND I THINK IT'S ALREADY BEEN ADDRESSED WITH THE ATTORNEY YOU HEARD EARLIER, IS DOES REMOVING A DATE FROM A SCREENSHOT OF A FEDERAL WEBSITE CONSTITUTE A FORGERY OF A FEDERAL DOCUMENT? NO. SO THE FBI REVIEWED THIS ALLEGATION WITH THE U.S. ATTORNEY'S OFFICE AND THE FEDERAL PROSECUTOR USED AN EXAMPLE WHERE THEY GENERALLY DO THE SAME WING THE DEPARTMENT OF JUSTICE, THEY'LL CUT AND PASTE THINGS OUT OF THAT PRESENTATION AND PRESENT IT. SO BASED ON THAT CUT AND PASTE OR THAT ALTERATION ALONE IS NOT ENOUGH FOR A CRIME. SO THE NEXT THING IS, DOES VOTING FOR AN AGENDA ITEM WITH ALLEGED REPRESENTATIONS CONSTITUTE A CRIME? NO. THE TEXAS PEEN NATURAL CODE 702 CRIMINAL RESPONSIBILITY FOR OTHERS, CONDUCT OF OTHERS DOES NOT APPLY TO A COUNCILMEMBER VOTING ON AN AGENDA ITEM, AND THAT WAS ASKED OF OUR DA, JIM ANY GRANDBURY, HE GAVE US THAT OPINION. DOES REMOVING A DATE FROM A SCREENSHOT AND PRESENTED TO COUNCIL CONSTITUTE A VIOLATION OF THE TEXAS PENAL CODE 3710 TAMPERING WITH A GOVERNMENT DUCT. THE DISTRICT ATTORNEY'S OFFICE CONCLUDED THE FACTS AND CIRCUMSTANCES OF THIS INSTANT DID NOT CONSTITUTE A VL VIOLATION AND THE REASON STATED -- AND THIS IS A BIG PART OF IT, IS THAT THAT MISS K DATE IS NOT MATERIAL TO ANY ACTION. SO ALL THE APPLICATIONS, BUILDING PERMITS, ACTIONS ON THIS PROJECT, ALL OCCURRED AFTER THE ACTUAL DATE THAT THEY -- THAT THIS -- THAT THE FEMA MAPS WENT INTO EFFECT, WHICH WAS OCTOBER 13, 2022. NOTHING OCCURRED BETWEEN THAT SIX MONTHS OF APRIL 2022 AND OCTOBER 2022. SO THERE'S ALSO NO ALLEGATION OF EVIDENCE OF A QUID PRO QUO TIED TO THIS SLIDE. THE DA RECOMMENDED THAT THE CIVIL PROCESS WOULD ADDRESS THE ISSUE. AND THE COUNCIL WAS ALSO MADE AWARE OF THE ISSUE BEFORE VOTING ON IT. SO OUR INVESTIGATION, THE CASE WAS INITIALLY INVESTIGATED BY FBI, WHO REVIEWED IT WITH THE FEDERAL PROSECUTORS AND FOUND NO VIOLATIONS OF THE U.S. CODE. SO WE'RE CHARGED WITH LOOKING AT VIOLATIONS OF THE PENAL CODE. OUR LEAD INVESTIGATOR IS HERE WITH US TODAY, SENIOR OFFICER GILBERT GARCIA, HE'S OUR MOST EXPERIENCED INVESTIGATOR, OVER 40 YEARS ON THE POLICE DEPARTMENT, MOST OF THAT IN AN INVESTIGATIVE ROLE. WE HAD A TEXAS RANGER WITH US, WE HAD TWO SUPPORTING INVESTIGATORS, SENIOR OFFICER MARCUS AND LOU AND THEY'RE BOTH EXPERIENCED WHITE-COLLAR CRIME INVESTIGATORS AND WE ALSO HAD THE DISTRICT ATTORNEY'S OFFICE ASSISTING US. SO THIS IS THE TIMELINE. WE KNOW THAT THE PROPERTY WAS SOLD STARTING IN JANUARY OF '13, AND THEN THOSE ARE THE FEMA DATES THAT WE SPOKE ABOUT. AND THEN IT SOLD AGAIN NOW TO -- FROM ELEVATE CORPUS CHRISTI TO ELEVATE QOF, LLC. THE FIRST PERMIT WAS IN AUGUST OF 2023, ABOUT 10 MONTHS LATER AFTER THOSE FEMA FLOOD ZONES GO INTO EFFECT. AND THEN LATER A FLOOD CERTIFICATE IS SUBMITTED FOR THE PROJECT. AND THEN IN SEPTEMBER, ELEVATE SUBMITS THE APPLICATION FOR $2 MILLION INCENTIVE, AND THEN OCTOBER, IN THE FIRST MEETING, PHILLIP RAMIREZ PRESENTS THE PLAN FOR THE DOWNTOWN HOTEL AND REQUESTS $2 MILLION. AT THAT SAME TIME THE TYPE B BOARD BEGAN DISCUSSING THE AGREEMENT, AND THEN ON NOVEMBER 9TH, THE EDC HAD A MEETING, THEY RECOMMENDED JUST A MILLION AND FREE T $43,000 BE AWARDED AS AN INCENTIVE, AND THAT WAS DUE TO LOOKING AT THE ECONOMIC IMPACT REPORT OF THE PROJECT, WHAT THAT WOULD BRING BACK TO THE CITY, USING THEIR MODELING, SAID THAT'S ABOUT WHAT THEY SUGGESTED THAT THEY GET. SO THEN IT GOES, OF COURSE, AS YOU KNOW, GOES TO THE TYPE B CORPORATION, AND THEN ON DECEMBER 11TH AT THE EDC STAFF PRESENTS THAT PRESENTATION WITH THE ALTERED SCREENSHOT THAT WE'RE AWARE OF, AND AT THAT TIME MR. WILSON MADE A MOTION TO DIRECT THE STAFF TO THE AGREEMENT OF $2 MILLION, AND THE MOTION PASSED UNANIMOUSLY, AND THAT WAS WHEN SORT OF THE PROJECT CHANGED FROM BEING RELATED TO FEMA TO BEING A CATALYST FOR THE DOWNTOWN AREA. THAT'S WHAT THE TYPE B SAID THAT THEY WOULDN'T MAKE THE MILLION DOLLARS BACK, YOU KNOW, FROM THE -- THAT PROJECT ALONE, BUT THEY BELIEVED THAT PROJECT WOULD BRING IN MORE, AND THAT'S WHY THEY AWARDED THE $2 MILLION WAS THE REASONING. SO THEN THE AGREEMENT IS SIGNED IN JANUARY. AND THEN IT GOES BACK TO TYPE B, WHERE THEY RATIFY IT AND IT PASSES UNANIMOUSLY, AND THEN THROUGH THE NORMAL PROCEDURES, THE EDC STAFF PRESENTING THE PROJECT TO THE CORPUS CHRISTI COUNCIL, AND AT THE FIRST READING IT PASSES SEVEN TO ONE WITH ONE ABSTENTION. AND THEN ON FEBRUARY 25TH, AJID DAVID CALLS THE CITY MANAGER, INFORMS HIM OF THE ALTERED DESCREEN SHOT ISSUE. THE ITEM HAD BEEN PLACE ON THE AGENDA BUT IT'S REMOVED SO THE MANAGER CAN CONDUCT AN INTERNAL REVIEW OF THESE ALLEGATIONS. ON APRIL 16TH, CITY MANAGER AND THE CITY ATTORNEY PRESENT THE POWERPOINT TO COUNCIL IN AN EXECUTIVE SESSION, AND TALK ABOUT THE SCREENSHOT AND WHAT THEIR FINDINGS WERE. AND THEN AT THAT SAME -- THE NEXT WEEK, MR. DAVID SHOWS THE SCREENSHOT IN THE PUBLIC COMMENTS, WHICH HE DID THE WEEK BEFORE ALSO. AND THE SECOND READING PASSES FIVE TO THREE WITH ONE ABSTENTION. SO ON MAY 15TH, MR. DAVID FILED THE COMPLAINT WITH THE FBI ALLEGING THAT THE SCREENSHOT WAS ALTERED FEDERAL DOCUMENT. THE CITY ATTORNEY -- OR I'M SORRY, THE CITY AUDITOR'S OFFICE THEN FILES A COMPLAINT IN AUGUST OF 2024, AND THEN ALSO AUGUST 2024 MR. DAVID COMES IN AND FILES A COMPLAINT WITH THE CITY AUDITOR. NOVEMBER 26TH, MR. DAVID FILED A LAWSUIT AGAINST THE CITY AND ON AUGUST 11TH, THAT'S, OF COURSE, THE MEMO THAT YOU RECEIVED AND MR. -- THE CITY AUDITOR THEN PRESENTS THAT TO COUNCIL ON THE NINTH. SO AS A RESULT OF THAT, CHIEF MARKLE NOTIFIED ME ON THE TENTH, THE NEXT DAY, THAT WE WOULD BE INVESTIGATING THAT ALLEGED CRIMINAL CONDUCT. AND I GATHERED OUR DEPARTMENT'S INTEGRITY TEAM, WHICH IS THE TEAM THAT WE PUT TOGETHER, AND WE ALSO INCLUDED THE FBI AND THE RANGERS ASKED TO ASSIST. SO MYSELF, TEXAS RANGER AND SENIOR OFFICER GARCIA MET WITH THE FBI, SPECIAL AGENT, AND WE REVIEWED THE INVESTIGATION, WHICH INCLUDED INTERVIEWING MR. DAVID, MR. CULBERTSON AND MR. RAR MIM RERS AND THE AGENT PROVIDED US WITH CASE NOTES AND ALL THE DOCUMENTS THEY HAD FROM THEIR INVESTIGATION. AND THEN ON SEPTEMBER 18TH, OUR TEAM MET WITH THE CITY AUDITOR'S TEAM AND HAD A GOOD MEETING, THEY PROVIDED US ALL THEIR DOCUMENTATION, AND WE WORKED WITH THEIR TEAM THROUGHOUT OUR INVESTIGATION. ANY TIME WE NEEDED MORE DOCUMENTS, THEY PROVIDED THOSE TO US. ON OCTOBER 7TH, WE BEGAN COMMUNICATING WITH MR. DAVID IN ATTEMPTS TO GATHER MORE INFORMATION, AND THEN OCTOBER 14TH, WE MET WITH THE DA'S OFFICE AND HIS LEADERSHIP, WHICH IS THE FIRST ASSISTANT MIKE GORDON AND APPELLATE ATTORNEY DOUG NORMAN, AND THE DA CONCLUDED THAT THE FACTS AND CIRCUMSTANCES IN THIS INSTANCE DID NOT CONSTITUTE A CRIMINAL VIOLATION. SO ON NOVEMBER 3RD, WE MET AGAIN WITH THE FBI, AND THEY BROUGHT AN AGENT IN WHO SPECIALIZES IN PUBLIC CORRUPTION CASES. WE REVIEWED, AGAIN, EVERYTHING WE HAD LEARNED AND -- THAT WE SAW NO PATH FORWARD IN A CRIMINAL INVESTIGATION. SO WE DID INTERVIEW MR. RAMIREZ AND THEN ON DECEMBER WE MET WITH MR. ELLISON AND HIS -- AND MR. DAVID A TO SPEAK ABOUT ANY CONCERNS THEY HAD. SO IN CONCLUSION, THE FBI, TEXAS RANGERS, CCPD INVESTIGATORS CONDUCTED A THOROUGH AND METHODICAL INVESTIGATION OF ALL MATERIALS INCLUDING STATEMENTS DOCUMENTARY EVIDENCE AND RECORDINGS RELATED TO THE ALLEGATIONS CONCERNING THE BUSINESS AGREEMENT BETWEEN THE CORPUS CHRISTI TYPE B ELEVATION AND ELEVATE QOF. BASED UPON THE TOTALITY OF ALL THE CIRCUMSTANCES, WE'RE UNABLE TO ESTABLISH PROBABLE CAUSE OR STAN SHAT ANY VIOLATION OF APPLIK K L STATE OR CRIMINAL CAL LAW. THE INVESTIGATION IS THEREBY DEEMED CLOSED WITH NO FURTHER WARRANTED AT THIS TIME. SO I STAND BY FOR ANY QUESTIONS. COUNCILMA N HERNANDEZ? >> Hernandez: THANK YOU, MAYOR. JUST OUT OF CURIOSITY, WHEN WAS THE LAST TIME THE NUECES COUNTY DA PROSECUTED A WHITE COLLAR TIME? >> NUECES COUNTY? WE FILE THOSE CASES WITH THEM -- I DON'T KNOW WHEN THE LAST TIME ACTUALLY ONE WENT TO COURT, BUT I HAVE TWO INVESTIGATORS THAT FOCUS ON THAT, AND THEY'RE FILING CASES, YOU KNOW, THROUGHOUT THE YEAR. WHITE COLLAR CRIMES. >> Hernandez: I MEAN, BUT YOU DON'T KNOW OF ANY THAT HAVE BEEN PROSECUTED BY THE DA? >> I'M CERTAIN MOST OF THOSE HAVE PROBABLY BEEN PROSECUTED, BUT I CAN'T THINK OF ANY SPECIFIC ONE RIGHT AT THIS MOMENT. SO TWO OF THOSE DETECTIVES THAT WE SPOKE ABOUT, WHITE COLLAR CRIMES, WHICH ARE FINANCIAL CRIMES, PEOPLE ARE EMBEZZLING MONEY, DOING THINGS. I DON'T KNOW IF MAYBE YOU'RE MORE ASKING ABOUT NUECES COUNTY INVOLVING IN A PUBLIC CORRUPTION CASE WHERE -- >> Hernandez: YEAH. >> IS THAT MAYBE WHAT THE QUESTION IS? I CAN'T THINK OF THE LAST ONE, BUT I KNOW THERE HAVE BEEN SOME IN THE PAST WHERE THEY ACTUALLY >> [OFF MIC] >> Hernandez: OKAY. LET ME REPHRASE. >> WE FILE CASES WITH THEM BUT THEY PROSECUTE THEM. >> Hernandez: LET ME REPHRASE. IN YOUR CAREER, HAVE YOU EVER HAD THE D.A. TO A PUBLIC CORRUPTION PROSECUTION THAT YOU RECALL, IN YOUR CAREER? >> NOT THAT I'VE BEEN INVOLVED WITH. NO. >> Hernandez: OKAY. DID YOU INTERVIEW DEVON BACKTA? >> NO. >> Hernandez: THERE'S A REASON FOR THAT? >> IT WAS APPARENT, FROM REVIEWING ALL OF THE DIFFERENT DEPOSITIONS AND STATEMENTS THAT MR. RAMIREZ WAS TAKING RESPONSIBILITY FOR THE PRESENTATION OF THE ALTERED ITEM. THAT IS WHAT WE WERE FOCUSING ON. >> Hernandez: DID YOU INTERVIEW ANY CITY STAFF MEMBERS IN THE ECONOMIC DEVELOPMENT AREA? >> WE SPOKE WITH QUITE A FEW OF THEM. THEY HELPED US GATHER RECORDS, PERMITS, THOSE SORTS OF THINGS. BUT WE DIDN'T FORMALLY INTERVIEW ANYBODY. >> Hernandez: THERE WAS AN ALLEGATION OF CHANGES TO THE AGENDA. >> RIGHT. SO WE ARE AWARE OF THE MEMO THAT WAS CHANGED FROM THE FIRST READING TO THE SECOND READING. THOSE WERE ALL CONSIDERED PART OF A CITY CHARTER ISSUE. IF THERE'S ANY VIOLATION THERE -- YOU KNOW, THERE'S REAL NO -- THE FACTS ARE NOT DISPUTED. THERE'S NO ONE SAYING THERE WAS ANY SORT OF COVER-UP. YES, WE KNOW HEATHER CHANGED THE MEMO AND IT WENT INTO THE LEGISTAR BUT, YOU KNOW, THAT'S -- IF THAT IS SHOWN TO BE A VIOLATION, IT WOULD BE ONLY A CITY CHARTER VIOLATION. >> Hernandez: OBVIOUSLY THE CITY CHARTER IS NOT -- >> RIGHT. SO WE WENT OVER MOUNTAINS -- ABOUT WHAT THE ATTORNEY SAID WHEN HE WAS TALKING ABOUT IT -- YES, WE DID THAT SAME THING. WENT THROUGH THOUSANDS OF PAGES OF RECORDS AND DEPOSITIONS AND, YOU KNOW, SO THEN YOU'RE LOOKING FOR WHAT'S CRIMINAL HERE. AND THE SLIDE WAS THE MOST LOGICAL THING TO INVESTIGATE. THERE'S OTHER CONDUCT THAT DIDN'T RISE TO CRIMINALITY. >> Hernandez: I UNDERSTAND. I APPRECIATE THE WORK YOU'VE DONE. THANK YOU. >> Mayor Guajardo: IT DOESN'T LOOK LIKE WE HAVE ANY OTHER QUESTIONS. THANK YOU FOR THE PRESENTATION. >> I DO. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: FIRST OFF, I'M SORRY Y'ALL HAD TO GO THROUGH THIS. >> Mayor Guajardo: PULL YOUR MICROPHONE OVER. >> Vaughn: SORRY YOU HAD TO GO THROUGH THIS BUT IT IS WHAT IT IS. I'M NOT GOING TO SLING ANY MUD HERE TODAY BUT I WANT THE TRUTH. I'M GLAD YOUR REPORT CAME OUT AND THE OTHER REPORT CAME OUT AS WELL, BECAUSE WE HAVE TO GO BY FACTS. ARE YOU, YOUR DETECTIVE, OR ANYONE WHO DID THIS INVESTIGATION FRIENDS WITH THE MAYOR OR HER HUSBAND? >> I'M NOT. I DON'T KNOW ABOUT MY COLLEAGUES. >> CAN I ANSWER FROM HERE? >> Vaughn: I DON'T KNOW. THE MAYOR'S IN CHARGE. >> GILBERT GARCIA, CCPD. AND THE ANSWER IS NO. >> Vaughn: THANK YOU. >> YOU'RE WELCOME. >> Vaughn: SOME OF THESE QUESTIONS THAT I'M ASKING Y'ALL, I HAVE BEEN ASKED FROM THE PUBLIC AND I WANT THE PUBLIC TO BE COMFORTABLE WITH WHAT THE INVESTIGATION FOUND OUT. SO YOU THINK THIS IS A CIVIL MATTER IS WHAT YOU SAID? >> YES. THIS WILL BE ADDRESSED THROUGH THE CIVIL PROCESS. >> Vaughn: WHY WOULD YOU SAY THAT? >> BECAUSE THERE IS A DISPUTE ABOUT WHETHER THIS PROCESS WAS LEGAL AND THAT WOULD NOT BE A CRIMINAL CASE, THAT WOULD BE UP TO A CIVIL JUDGE OR CIVIL COURT. >> Vaughn: OKAY. DID YOU EVER INTERVIEW BRIAN GULLEY, THE SELLER OF THE LAND? >> NO. >> Vaughn: NEVER DID? BUT YOU AGREE THE DOCUMENTS WERE ALTERED. THERE'S NO DOUBT ABOUT THAT. >> THE SCREENSHOT WAS DEFINITELY ALTERED YES. >> Vaughn: DID IT LOOK INTENTIONAL? CAN YOU, AS A POLICE OFFICER -- I MEAN, YOU LOOK AT STUFF LIKE THIS. >> IT WOULD BE HARD TO ARGUE THAT IT WAS NOT. >> Vaughn: THANK YOU. AND Y'ALL BELIEVE Y'ALL ARE OBJECTIVE IN ALL YOUR FINDINGS. IT'S KIND OF HARD BECAUSE YOU DEAL WITH PEOPLE UP HERE. DO YOU FEEL LIKE YOU WERE OBJECTIVE? >> DEFINITELY. >> Vaughn: I FEEL LIKE YOU WERE TOO. >> Vaughn: YOU NEVER GOT ANY CELL PHONE RECORDS BECAUSE YOU WOULD HAVE HAD TO HAVE PROBABLE CAUSE TO GET THOSE. >> THAT WAS ONE OF THE THINGS THAT WAS A LITTLE UNORTHODOX WITH THIS INVESTIGATION IS WE WERE INVOLVED SO LATE IN IT. EVEN IF WE WOULD HAVE BEEN ABLE TO GET SEARCH WARRANTS FOR CELL PHONES OR COMPUTERS, YOU KNOW, IT'S ALMOST THREE YEARS LATER. NOT THAT THAT WOULD HAVE CHANGED ANYTHING FROM WHAT WE FOUND. IF WE HAD THAT ABILITY, IF WE DEVELOPED PROBABLE CAUSE AT ANY POINT IN TIME, IT WOULD BE DIFFICULT TO GET YOUR TEXT MESSAGES AND THOSE SORTS OF THINGS ARE ALL GONE. >> Vaughn: HEATHER, THE ASSISTANT MANAGER, WE KNOW SOME STUFF WAS DELETED FROM THE WEB. HE ASKED YOU. SO IT NEVER OCCURRED TO Y'ALL TO ASK HER WHO TOLD HER TO DELETE IT OR SHE DID IT ON HER OWN? SHE TOLD ALYSSA TO DELETE IT? >> THAT IS NOT PART OF ANY CRIMINAL CASE. THAT'S ALL PART OF THE INTERNAL CIVIL PROCESS. >> Vaughn: IT'S NOT ILLEGAL TO DO THAT? >> IT WOULD BE A CITY CHARTER ISSUE OR IF IT'S ANY VIOLATION OF CITY ETHICAL RULES, WHATEVER. BUT SHE WAS PRETTY STRAIGHTFORWARD IN HER TESTIMONY AND HER DEPOSITION WHAT SHE DID AND WHY SHE DID IT. >> Vaughn: OKAY. I DON'T KNOW IF SHE SAID WHY SHE DID IT. DID YOU HEAR THAT? >> I RECALL -- AND I DON'T HAVE THE ACTUAL STATEMENTS IN FRONT OF ME -- WAS SHE WAS TRYING TO MAKE IT RIGHT. THE TYPE B, WHEN IT LEFT THERE, IT REALLY SHOULD HAVE BEEN CHANGED. THAT WHOLE PRESENTATION. THEY JUST USED THE SAME PRESENTATION AND SO THEN IT GOES -- AND THEY LEFT THAT LANGUAGE IN THERE. EVEN THOUGH THE TYPE B SAID THIS IS NO LONGER A FEMA PROJECT, THIS IS A CATALYST PROJECT. SO I THINK FROM WHAT I UNDERSTOOD FROM HER TESTIMONY WAS I WAS TRYING TO MAKE IT RIGHT TO FIT WHY IT CAME OUT OF TYPE B. >> Vaughn: OKAY. WELL, I GOT A WHOLE BUNCH MORE BUT I DON'T THINK THAT IT'S GOING TO SERVE ANY PURPOSE TO ASK THEM BECAUSE WE HAVE TWO REPORTS AND BOTH THE REPORTS SAY THE SAME THING. SO I DON'T THINK YOU CAN GO ANY FURTHER THAN THAT. ALL I WANTED WAS TRUTH AND TRANSPARENCY AND I THINK THAT'S WHAT WE GOT FROM YOU GUYS AND THAT'S ALL WE CAN ASK. THANK YOU. >> Mayor Guajardo: COUNCILMAN BARRERA. >> Barrera: COULD YOU BRING BACK UP THE SLIDE, DEPUTY CHIEF, THAT INDICATES -- I GUESS THE TIMELINE. JUST THE FIRST ONE WITH REGARD TO THE TIMELINE. >> RIGHT AT THE BEGINNING? >> Barrera: YEAH. AND SO, GO TO THE NEXT SLIDE. NEXT SLIDE. OKAY. NEXT SLIDE. SORRY. I GUESS THE THING IS THE REASON THAT WE'RE HERE IS THE AUDITOR BROUGHT BEFORE US AND PUT OUT A MEMO AUGUST 21 THAT THEY CONCLUDED THAT A FELONY FORGERY AND ASKED FOR AN INDEPENDENT EXTERNAL INVESTIGATION. I'M JUST SAYING THAT FOR THE PUBLIC . ON THE 9th THE AUDITOR MADE A PRESENTATION TO THE CITY COUNCIL. AND AT THAT TIME A COMPLAINT HAD BEEN FILED WITH THE FBI. THE CITY'S AUDITOR'S OFFICE, WHICH WAS UNBEKNOWNST TO MANY OF US, AT LEAST ME, FILED A COMPLAINT WITH THE FBI. AND WE APPRECIATE THE AMAZING WORK THAT YOUR TEAM HAS DONE AND UNFORTUNATELY THIS HAS BEEN HIGHLY POLITICAL AND YOU GUYS HAVE BEEN ABLE TO BE VERY, VERY NEUTRAL IN DETERMINING THE FACTS AND GIVING US THAT INFORMATION. BUT I JUST WANT TO SAY THAT THE REASON THAT YOU -- AND I WAS ONE OF THE ONES THAT BROUGHT IT UP -- IS THAT I REQUESTED THAT THE CORPUS CHRISTI POLICE DEPARTMENT IS THE AUTHORITY FOR ANYTHING THAT HAPPENS IN THE CITY OF CORPUS CHRISTI THAT WOULD BE CONSIDERED A CRIME. THAT'S WHY I THINK THIS COUNCIL DECIDED TO BRING IT HERE. I JUST WANTED TO REMIND EVERYBODY THAT THE REASON CCPD WAS INVOLVED IS BECAUSE THE AUDITOR INDICATED THAT THEY CONCLUDED A FELONY FORGERY HAD BEEN COMMITTED. AND WE APPRECIATE THE FACT THAT YOU GOING THROUGH ALL THE FACTS AND DETERMINING THAT NO CRIME HAS BEEN COMMITTED. THANK YOU VERY MUCH. >> Mayor Guajardo: OKAY. I THINK THAT SUMS IT UP. THANK YOU. >> THANK YOU. >> Mayor Guajardo: THANK YOU FOR YOUR TIME. CHIEF MARKLE, THANK YOU. OKAY. AND WE'RE GOING TO MOVE BACK ON TO SECTION K. THAT IS INDIVIDUAL CONSIDERATION ITEMS. NO. 14 IS A RESOLUTION RELATING TO ESTABLISHING THE CITY'S INTENTION TO REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS RELATING TO ANY CAPITAL EXPENDITURES FROM THE PROCEEDS OF ONE OR MORE SERIES OF TAX-EXEMPT OR TAXABLE OBLIGATIONS TO BE ISSUED BY THE CITY IN AN AGGREGATE AMOUNT NOT TO EXCEED $410 MILLION FOR AUTHORIZED PURPOSES, INCLUDING THE EVANGELINE GROUNDWATER RIGHTS PROJECT, PUMP STATION, AND CONVEYANCE SYSTEMS, AND THE BRACKISH WATER DESALINATION PLANT PROJECT. >> DIRECTOR OF FINANCE AND PROCUREMENT. THANK YOU, MAYOR. THE ITEM BEFORE YOU IS A REIMBURSEMENT RESOLUTION FOR SOME UPCOMING CAPITAL PROJECTS. I DO HAVE A BRIEF PRESENTATION HERE, JUST TO KIND OF TALK ABOUT THAT. SO JUST A REMINDER, A REIMBURSEMENT RESOLUTION IS NEEDED IF THE CITY WOULD LIKE TO START CERTAIN CAPITAL PROJECTS, START SPENDING MONEY ON THOSE PROJECTS, AND REIMBURSE ITSELF WITH BOND FUNDS. AND SO IN ORDER FOR US TO SPEND MONEY AND TO GET REIMBURSED THROUGH DEBT PROCEEDS, A RESOLUTION IS NEEDED. THE PROJECTS INCLUDED HERE, WE DO HAVE A SUMMARY OF WATER REVENUE BONDS. WE DO HIGHLIGHT THE PROJECTS INCLUDED IN THIS $410 MILLION. THE $410 MILLION WATER REVENUE BONDS ARE TO FUND A CONTAINERIZED BRACKISH WATER TREATMENT PLANT FOR $4 MILLION. IMPROVEMENTS TO THE SITE FOR THE BRACKISH WATER TREATMENT PLANT OF ABOUT $11.4 MILLION. AS WELL AS A PUMP STATION CONVEYANCE SYSTEM OF ABOUT $120 MILLION. WE ALSO ARE INCLUDING $38 MILLION FOR GROUNDWATER RIGHTS AND ABOUT $197 MILLION FOR THE EVANGELINE GROUNDWATER PROJECT FOR A GRAND TOTAL OF $410 MILLION. STAFF IS RECOMMENDING APPROVAL OF THE REIMBURSEMENT RESOLUTION. AND I'LL STAND BY FOR ANY QUESTIONS. >> Mayor Guajardo: SO FOR CLARITY, THIS GIVES THE STAFF AUTHORIZATION TO SPEND THESE DOLLARS -- ESSENTIALLY THIS IS LIKE AN IOU. >> WE WOULD SPEND MONEY ON APPROVED CAPITAL PROJECTS, ONCE THOSE ARE APPROVED AND BUDGETED FOR . AND THAT AUTHORIZES US TO SPEND MONEY FROM OUR PULLED BANK ACCOUNT SO THAT WE BASICALLY -- THE MONEY THAT WE'RE SPENDING, ONCE WE ISSUE THE DEBT PROCEEDS, WE REPLENISH THOSE FUNDS AND MAKE THE CITY WHOLE. NORMALLY, WE DO THIS ANNUALLY. JUST A REMINDER OF HOW WE NORMALLY DO THIS IS ON A REGULAR YEAR WE GO THROUGH THE BUDGET PROCESS. THE BUDGET IS ADOPTED IN SEPTEMBER. OCTOBER 1st OF THAT YEAR WE START THE NEW BUDGET PROCESS, INCLUDING THE CAPITAL PROJECTS. THEN IN THE MONTH OF DECEMBER, FINANCE WILL COME WITH A REIMBURSEMENT RESOLUTION IN ORDER TO START SPENDING MONEY ON THOSE PROJECTS. USING CITY FUNDS. THEN IN ABOUT THE JUNE/JULY TIMELINE WE'LL ISSUE DEBT FOR THOSE FUNDS BEING SPENT AND REIMBURSING OURSELVES, MAKING OURSELVES WHOLE. >> Mayor Guajardo: WE ARE TAKING UP DEBT CAPACITY IN APPROVING THIS ITEM? >> THIS ITEM DOESN'T TIE UP YOUR DEBT CAPACITY BUT IT WILL LEAD TO ISSUING DEBT. AND SO -- ONCE YOU AUTHORIZE THE PROJECTS TO MOVE FORWARD AND MONEY IS BEING SPENT ON THOSE PROJECTS, WE'LL TRACK THE SPENDING OF THOSE EXPENDITURES. AND THEN START ISSUING TRANCHES OF DEBT TO REIMBURSE OURSELVES FROM MONEY BEING SPENT. THIS ITEM DOESN'T NECESSARILY MEAN WE'RE GOING TO GO ISSUE DEBT RIGHT AWAY. >> Mayor Guajardo: THANK YOU. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. THANK YOU. SO THESE ARE PROJECTS WITH THE EXCEPTION OF NUMBER ONE, WHICH IS ACTUALLY THE ITEM IMMEDIATELY AFTER THIS ONE. THESE ARE ALL PROJECTS THAT WE HAVE ALREADY VIEWED, REVIEWED, AND APPROVED. THIS IS A FORMALITY TO ISSUE THE PAYMENT. >> THESE PROJECTS ARE COMING UP IN THE NEXT ITEMS ON THE AGENDA. AND SO YOU'LL SEE STARTING WITH ITEM 15 THAT IS ONE OF THE PROJECTS THAT WILLED BE REIMBURSED THROUGH THE REIMBURSEMENT RESOLUTION. AS WELL AS ITEM 16, ITEM 17. >> Paxson: RIGHT. THE CONTINUATION OF EACH OF THESE PROJECTS THAT WE HAVE STARTED. >> YES. YOU'RE RIGHT. EXACTLY. >> Paxson: THIS JUST ISSUES THE PAYMENT ON EACH OF THOSE. >> YES. SORRY. >> Paxson: THANK YOU. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: OKAY. I'M ASSUMING THIS IS THE FUNDING IS CURRENTLY IN OUR RESERVE BALANCE FOR WATER? >> YES. WE DO HAVE -- IT'S REALLY THE WAY THE GOVERNMENT ACCOUNTING WORKS, WE USE PULLED CASH. TO LEVERAGE OUR INVESTMENT AND OUR RETURN ON INVESTMENTS, WE BASICALLY -- SO THE WAY FUND ACCOUNTING WORKS BUT FUND ACCOUNTING, WE HAVE -- >> Hernandez: SO IT'S ALL OUR BALANCES. >> RIGHT. WE TAKE ALL OUR CASH FROM ALL SOURCES AND PUT THEM IN ONE BANK ACCOUNT. >> Hernandez: THERE ARE SOME PROJECTS ON HERE THAT AREN'T GOING TO BE VOTED ON TODAY, LIKE THE $120 MILLION FOR THE CONVEYANCE IS NOT A PROJECT THAT WE'VE ACTUALLY EVEN SEEN YET. BUT YOU HAVE IT LISTED HERE. ARE YOU DOING THAT PREMATURELY OR I DON'T RECALL THAT BEING A NORMAL PROCESS. >> NO. NORMALLY, THE PROJECTS WOULD COME FIRST, KIND OF AS THE WAY THE BUDGET IS ADOPTED. YOU WOULD ADOPT THE BUDGET APPROVING THE PROJECTS AND THEN THE REIMBURSEMENT RESOLUTION WOULD GO AFTERWARDS. MAYBE HERE JUST THE ORDER GOT SHUFFLED AROUND A LITTLE. IT WOULD BE MAYBE BEST FOR THE PROJECTS TO GO FIRST AND WHAT IS APPROVED, THEN THE RESOLUTION CAN BE ADJUSTED TO MATCH WHAT IS APPROVED. >> Hernandez: YEAH. I MEAN, BUT YOU'RE ASKING FOR SOMETHING THAT WE'RE NOT EVEN LOOKING AT YET. YOU HAVE -- YOU GO TO THE AGENDA ITEM -- >> WHAT WE CAN DO IS MAYBE TABLE THIS ITEM FOR NOW, GO THROUGH THE PROJECTS FOR REVIEW AND APPROVAL. >> NICK WINKELMANN, CHIEF OPERATING OFFICER, CORPUS CHRISTI WATER. IN FACT, COUNCILMAN, THE CONVEYANCE LINE, THE IMPROVEMENTS AT O.N. STEVENS, AND THE PUMP STATION AT THE WESTERN WELLFIELD, THEY ARE INCLUDED IN ITEM NO. 15, INCLUDING THE ACTUAL BRACKISH RO TREATMENT. THAT IS SOMETHING YOU WILL SEE IN AGENDA ITEM 15. >> Hernandez: WAIT A MINUTE. WAIT A MINUTE. HAVE WE DONE ALL THE ENGINEERING FOR THAT OR IS THAT JUST A GUESSTIMATE? >> Winkelmann: SO IT'S AN ESTIMATED COST. I HAVE THE DETAILS IN THE AGENDA ITEM THAT WE CAN GO OVER IN DETAIL, THE FULL PROJECT. WHICH IS THE PUMP STATION AT THE WESTERN WELLFIELD CONVEYANCE LINE AND THE BRACKISH RO TREATMENT -- >> Hernandez: NO, I GUESS THE QUESTION I'M ASKING HERE -- IT'S IN THE AGENDA ITEM BUT I DON'T RECALL US DOING ANY KIND OF PROCUREMENT FOR IT OR, YOU KNOW, EVEN THE DESIGN WORK FOR IT. NOTHING. >> Winkelmann: YEAH. AS WE'LL TALK ABOUT. AS YOU KNOW, COUNCILMAN, TIMING IS CRITICAL SO WE'RE GOING TO MOVE FORWARD. WHAT WE SEEK IS APPROVAL TO MOVE FORWARD UNDER PUBLIC HEALTH AND SAFETY TO HIRE MULTIPLE CONTRACTORS TO MOVE FORWARD, PARTICULARLY ON THAT CONVEYANCE LINE. WE HAVE GARVER ENGINEERING DOING THE DESIGN WORK. >> Zanoni: I WANTED TO HIGHLIGHT -- I WAS GOING TO MENTION THAT LAST POINT. GARVER IS DESIGNING THIS CONVEYANCE LINE. IT'S 13 MILES? >> Winkelmann: APPROXIMATELY 13 MILES. >> Zanoni: WHAT PERCENTAGE? >> Winkelmann: I WOULD SAY THEY ARE GETTING CLOSE TO 50% DESIGN PETER. 5-0. >> Zanoni: THE ESTIMATES ARE BASED ON 50% DESIGN. >> Hernandez: WHEN DID THAT HAPPEN? >> Zanoni: WE HIRED GARBER -- WHEN DID YOU HIRE GARBER, NICK? CITY COUNCIL APPROVED IT . >> Winkelmann: THERE WAS AN EMERGENCY AUTHORIZATION MEMO UNDER THE PREVIOUS COO THAT BROUGHT GARBER UNDER CONTRACT TO LOOK INTO THE PROJECT. >> Hernandez: I THOUGHT THAT WAS FOR THE EVANGELINE PROJECT. RIGHT? NOT FOR THIS PROJECT. >> Zanoni: THAT'S GARNEY. GARNEY IS EVANGELINE. >> Hernandez: GARBER THE ENGINEERING COMPANY NOT GARNEY THE CONSTRUCTION COMPANY. >> Winkelmann: YOU'RE CORRECT, SIR. >> Hernandez: I DON'T RECALL THAT BEING PART OF THE CONVEYANCE BUT I REMEMBER SOMETHING ALONG THE LINES FOR THE DEVELOPMENT OF THE WELLFIELD, NOT THE CONVEYANCE. WE DIDN'T EVEN TALK ABOUT CONVEYANCE WHEN THEY WERE DEVELOPING THE WELLFIELD. >> Zanoni: THE EVANGELINE WELLFIELD? >> Hernandez: NO, NO. YOU KNOW, IT WENT FROM THE EASTERN WELLFIELD FOR THE BED AND BANKS PERMIT. THEN WE BOUGHT 251 ACRES TO CALL IT THE WESTERN WELLFIELD. AND THEN WE ACQUIRED THE RIGHTS FOR THE 2,478 ACRES OF THE ED RACHAL FOUNDATION. THAT -- I MEAN, NOT UNTIL WE GOT TO THE WESTERN WELLFIELD DID WE EVEN TALK ABOUT CONVEYANCE TO GET TO A BRACKISH WATER DESAL. THAT WAS NEVER TALKED ABOUT WITH GARVER IN THEIR WORK TO DO THE EASTERN WELLFIELD. >> Winkelmann: YEAH, THE PRESENTATION FOR 15 LAYS OUT THE STEP-BY-STEP PROCESS OF ALL OF THAT. I DO UNDERSTAND THAT THE REIMBURSEMENT RESOLUTION INCLUDES THAT BUT THE PRESENTATION SHOWS THAT. >> Hernandez: I GUESS WHEN WE GET TO THAT ITEM I WANT SOME DETAILED UNDERSTANDING BECAUSE THAT WAS NEVER PART OF ANY DISCUSSION I EVER RECALL. I'M USUALLY PRETTY GOOD ABOUT REMEMBERING STUFF. >> Winkelmann: THERE'S BEEN MULTIPLE CONVERSATIONS WITH COUNCIL AND THE MAYOR ABOUT THIS OVER THE LAST COUPLE OF MONTHS. >> Hernandez: ABOUT GARVER DOING THE DESIGN WORK ON A TRANSMISSION LINE? >> Winkelmann: ABOUT THE CONVEYANCE LINE AND THE WORK THAT'S BEEN DONE TO DATE AND THE BRACKISH RO FACILITY. >> Hernandez: LIKE I SAID, I WANT TO -- YOU'RE ASKING US TO APPROVE SOMETHING THAT DIDN'T GO THROUGH A PROCUREMENT PROCESS. I WAS NOT AWARE THAT GARVER STARTED THE DESIGN PROCESS ON THIS TRANSMISSION LINE. I'LL WAIT FOR YOUR EXPLANATION ON THE NEXT ITEM BUT WE'LL GO AHEAD AND GO FORWARD. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: THIS LOOKS BACKWARDS TO ME BECAUSE YOU'RE ASKING US TO DO A RESOLUTION ON TWO DIFFERENT ITEMS, WHICH ONE I AGREE WITH AND THE OTHER I DON'T. HOW DO Y'ALL EXPECT ME TO VOTE ON THAT? THIS IS BACKWARDS. YOU SHOULD HAVE GIVEN US THE ORDINANCE -- LIKE 15 SHOULD HAVE CAME FIRST. WHY DID YOU DO IT LIKE THIS? >> NOT SURE HOW THE AGENDA IS SET. WE'LL SUBMIT OUR REIMBURSEMENT RESOLUTION. >> Vaughn: I THINK WE NEED TO TABLE THIS ONE AND GO TO THE NEXT ONE AND COME BACK. I'M GOING TO MAKE A MOTION TO TABLE IT. >> Zanoni: WE CAN DO THAT. THERE'S ACTUALLY LEGAL PROJECTS ON HERE BUT THE ACTIONS, SIMILAR TO OUR BUDGET, WHEN WE DO THE CITY'S ANNUAL BUDGET, THERE'S ALWAYS THE REVENUES GET APPROVED FIRST AND THEN YOU CAN DO APPROPRIATIONS. THE LEGAL TEAM IS TELLING US YOU NEED THE MONIES TO BE LEGALLY ABLE TO APPROPRIATE. BUT WE CAN BREAK THIS INTO THREE SEPARATE THINGS. THERE WILL BE A REIMBURSEMENT RESOLUTION FOR THE CONTAINERIZED RO AND THE TRANSPORTATION LINE. THERE'S AN ITEM FOR THE LIE RANCH WATER RIGHTS PURCHASE AND THEN THERE'S THE PAPE-DAWSON GARNEY CONTRACTS. WE CAN DO THREE SEPARATE REIMBURSEMENT RESOLUTIONS IN THREE SEPARATE AGENDA ITEMS. >> Vaughn: YOU SAID YOU CITED PUBLIC HEALTH AND SAFETY FOR WHAT? >> THE PROCUREMENT PROCESS FOR EMERGENCY. >> Vaughn: DID YOU SIGN ANYTHING LIKE THAT FOR EVANGELINE? PUBLIC SAFETY? >> YES. ALL THE WATER PROJECTS ARE OPERATING UNDER THE EMERGENCY PROCUREMENT. >> Zanoni: YEAH. THE ENTIRE EVANGELINE DESIGN AND CONSTRUCTION WORK WAS DONE THROUGH THE CITY MANAGER'S APPROVAL. >> Vaughn: IT'S BEEN SO LONG AGO. >> Zanoni: THE LI RANCH, COUNCIL APPROVED THE EARNEST CONTRACT TWO MEETINGS AGO AND TODAY WILL BE COUNCIL APPROVING THE GROUNDWATER RIGHTS. AND THEN THIS LAST PROJECT, THE CONTAINERIZED RO SYSTEM IS EMERGENCY POWERS OF THE CITY MANAGER TO BRING THAT PROJECT ON. >> Vaughn: WE'RE GOING TO DO IT IN THREE SEPARATE -- >> Zanoni: LET'S DO IT IN THREE SEPARATE ONES. YOU MIGHT NOT WANT TO VOTE FOR SOME BUT YOU MIGHT WANT TO VOTE FOR OTHERS. >> Mayor Guajardo: WELL, AND PIGGYBACKING OFF OF THAT, IT SHOULD HAVE ALWAYS BEEN THAT WAY. I'M GOING TO THROW ANOTHER WRENCH HERE, JUST SOMETHING TO THINK ABOUT. IN TWO WEEKS WE'RE GOING TO HAVE A JUDGE SAY WHETHER THERE IS STANDING OR NOT ON OUR EVANGELINE PROJECT. AND HOPEFULLY THERE'S NOT BUT WE SIMPLY DO NOT KNOW TODAY, CORRECT? >> Zanoni: THAT'S CORRECT. THE HEARING HASN'T HAPPENED. >> Mayor Guajardo: WE HAVE BEEN TOLD THAT IF THERE IS STANDING, THAT COULD BE A TWO-YEAR, THREE-YEAR, WE DON'T KNOW. >> Zanoni: CORRECT. >> Mayor Guajardo: SO WE'RE GOING TO TAKE $197 MILLION OF OUR DEBT CAPACITY FOR SOMETHING THAT WE'LL KNOW IN TWO WEEKS. WHY WOULDN'T WE DO THIS IN TWO WEEKS AND SAY -- >> Zanoni: EVERY WEEK MATTERS WHEN IT COMES TO THIS DROUGHT. >> Mayor Guajardo: YOU'RE GOING TO ORDER THINGS NEXT WEEK? >> Zanoni: WE'LL BEGIN TO ORDER SOME THINGS. WHAT COULD HAPPEN IS IF IN TWO WEEKS WE LEARN THEY HAVE STANDING, THEN WE'RE GOING TO MAKE A DETERMINATION AND RECOMMEND TO THE COUNCIL THAT WE STOP ORDERING OR WE PUT THINGS BACK ON THE SHELF AND PAY A SLIGHT PENALTY FEE. THE NEXT COUNCIL MEETING IS NOT -- I THINK IT'S THREE MEETINGS. IT WOULD BE ALMOST A MONTH BEFORE WE'RE BACK IN FRONT OF THE COUNCIL, UNLESS WE HELD AN EMERGENCY MEETING. THIS IS THE ADMINISTRATIVE PART OF IT SO IT'S GOING TO TAKE TIME TO ACTUALLY PLACE THE ORDER. THE STAFF HAS TO APPROVE THE -- KIND OF LIKE THE NOTICE TO PROCEED. WE HAVE TO NOTICE TO PAPE-DAWSON AND GARNEY, YES, ORDER THAT. SO THERE'S A LOT OF STEPS THAT STILL TAKE PLACE. IF WE APPROVE THIS TONIGHT, WE'RE NOT GOING TO ISSUE $197 MILLION IN DEBT AND EVERYTHING'S GOING TO GET ORDERED WITH A KEYBOARD PUSH. SO THERE'S A LOT OF STEPS THAT WILL HAPPEN BETWEEN NOW AND THE NEXT COUPLE OF WEEKS. I MEAN, THE BARREL'S ON US IN TERMS OF THE TIME BETWEEN NOW AND NOVEMBER. SO WE'RE TRYING TO DO EVERYTHING HUMANLY POSSIBLE TO BRING THE PROJECTS FORWARD. >> Mayor Guajardo: I UNDERSTAND THAT BUT WHEN YOU ISSUE -- MY CONCERN IS WE DON'T KNOW. AND WE'RE GOING TO KNOW IN TWO WEEKS. SO HOW -- I MEAN -- >> Zanoni: THAT'S NOT FOR SURE. >> Mayor Guajardo: HANG ON. HANG ON. I'M NOT GOING TO NOT SUPPORT IT BUT I'M JUST BRINGING THIS TO LIGHT WAS UNLESS THERE IS A GOOD REASON TO SAY, WELL -- WHICH THERE IS, IN MY OPINION. BUT WHY WOULDN'T WE WAIT TWO WEEKS AND SAY, OKAY. BECAUSE YOU'RE TELLING ME Y'ALL ARE GOING TO START ORDERING, LITERALLY IN THE NEXT -- YOU HAVE MAYBE A WEEK AND A HALF OR SO -- ITEMS. LET'S SAY THEY COME BACK AND SAY SOMEBODY HAS STANDING. WHAT HAPPENS THEN? YOU CANCEL AN ORDER AND PAY -- >> Zanoni: IF THINGS ARE ORDERED, WE WOULD -- WE WOULD HAVE TO MAKE THAT DETERMINATION OF HOW LONG WOULD THE HEARING BE. HOW LONG WOULD IT TAKE BEFORE THE HEARING, WHO HAS STANDING. SAY, MAYBE IT'S NOT THE CITY OF SINTON, IT'S THE ST. PAUL WATER CORPORATION. WE WOULD SAY THAT ONE'S GOING TO BE EASIER TO APPROVE IN THE FORMAL HEARING THEY DON'T HAVE STANDING. THERE'S A LOT OF UNKNOWNS. THE HEARING MIGHT NOT EVEN TAKE PLACE IN THE SECOND. WE'LL KNOW BY FRIDAY IF IT DOES BECAUSE THE JUDGE, BY STATUTE, HAS TO ANNOUNCE THE HEARING TEN DAYS BEFORE THE HEARING. THE TENTH DAY IS THIS FRIDAY. >> Mayor Guajardo: MY CONCERN IS IF WE DO THIS AND THEN THE PROCESS BEGINS WHERE BONDS HAVE TO BE SOLD AND THEN THE RATEPAYER GETS IMPACTED AND THEN THERE'S STANDING AND WE'RE NOW PAYING -- THE RATEPAYER IS PAYING FOR SOMETHING WE DON'T KNOW IS GOING TO BE DELIVERED. THAT'S MY CONCERN. I'M -- >> Zanoni: THERE WOULD BE DEBT ISSUED. BONDS WOULDN'T BE SOLD UNTIL -- IT'S GOING TO BE MONTHS FROM NOW. BUT STILL THE RATEPAYER WOULD PAY UNDOUBTEDLY. BUT NO BONDS ARE ISSUED RIGHT AWAY. IT WOULDN'T BE UNTIL WE GO THROUGH THE PROCESS. IT'S USUALLY -- WHEN IS IT GOING TO BE? >> Mayor Guajardo: A YEAR. >> Zanoni: IT WILL BE MONTHS FROM NOW BEFORE THE BONDS ARE SOLD. >> DEFINITELY AT LEAST A YEAR TO SELL THOSE BONDS. >> Zanoni: THE ISSUE IS THERE IS RISK IN THAT THIS PROJECT MIGHT BE DELAYED. THERE'S ALSO A CHANCE IT'S NOT. AND SO A WEEK DOESN'T SOUND LIKE A LOT OF TIME BUT WE HAVE NOW EIGHT MONTHS I THINK IS WHAT IT IS UNTIL NOVEMBER. WE'RE LOOKING AT THE CURTAILMENT UPDATE, BECAUSE IT COULD EVEN BE SOONER THAN NOVEMBER. SO WE'RE TRYING TO BE OPTIMISTIC TO SAY WE THINK THIS PROJECT HAS A GOOD CHANCE STILL. SO LET'S ORDER THE STUFF AND IF IT DOESN'T, THEN IT'S BETTER TO HAVE IT ON ORDER AND IF THE PROJECT GOES THROUGH AND WE HAVEN'T ORDERED, WE HAVE LOST TIME. TIME IS WHAT WE DON'T HAVE AND TIME IS SLIPPING AWAY AND CURTAILMENT IS LOOMING. WE ARE BEING PROACTIVE IN TRYING TO BRING EVERYTHING FORWARD WE CAN. WE MAY HAVE TO PAY A PRICE FOR THE RISK IF WE LOSE BUT THAT'S BETTER, IN MY OPINION, THAN NOT HAVING ANY WATER COME NOVEMBER. >> Mayor Guajardo: YEAH. >> Zanoni: I MEAN, IT'S MY JOB AS A CITY MANAGER. I HAVE TO DO EVERYTHING I CAN DO TO MAKE SURE THIS REGION -- NOT EVEN COMMUNITY, REGION -- DOESN'T HAVE A CURTAILMENT HAVE A SITUATION. >> Mayor Guajardo: WE'RE IN THE SAME BOAT WITH YOU. WE'RE ALL IN THE SAME BOAT. AGAIN, MY CONCERN IS THE PROCESS. I COMPLETELY UNDERSTAND WHERE YOU'RE COMING FROM, I JUST DON'T KNOW THAT A WEEK AND A HALF OR SOMETHING MAKES A DIFFERENCE. >> Zanoni: NOE IS HERE FROM PAPE-DAWSON. A DAY MATTERS TO HIM. A WEEK IS A LONG TIME. I DON'T KNOW IF YOU WANT CHRIS TO COME DOWN. >> Mayor Guajardo: NO, THAT'S OKAY. I DON'T NEED A LESSON IN TIME MANAGEMENT. OKAY. COME ON DOWN, CHRIS. >> Barrera: I'M NEXT. >> Zanoni: OKAY. HE CAN SPEAK LATER. WE WORK WITH HIM EVERY DAY, EVERY WEEK. >> NO, I'M NEXT. >> I'M NOT GOING TO SPEAK NOW. >> THAT'S FINE. I'M GOOD WITH THAT. >> Mayor Guajardo: IT'S BEEN A LONG DAY. >> I'M NOT GOING TO CALL HIM. I HAVE OTHER THINGS. >> Mayor Guajardo: WE'LL CALL HIM RIGHT BACK. BE READY, CHRIS. COUNCILMAN BARRERA. >> Barrera: I PLAY IT EVERY TIME I COME IN HERE. OKAY. FIRST OFF, I'M GOING TO DISAGREE WITH YOU. AND THE REASON -- AND I'M GOING TO DISAGREE WITH YOUR TEAM. WITH THE EXCEPTION OF SERGIO. HE'S BRILLIANT. ALL OF YOU ARE BUT I'M BASKING IN HIS GLOW RIGHT NOW . I THINK YOU'RE BARKING UP THE WRONG TREE AND I THINK YOUR TEAM IS CONCERNED ABOUT CONTRADICTING YOU. BECAUSE THE RESOLUTION -- AND I KNOW WE JUST WENT THROUGH THIS WHOLE THING ABOUT CAPTIONS. BUT A RESOLUTION RELATING TO ESTABLISHING THE CITY'S INTENTION. IT DOESN'T SAY WE'RE GOING TO SELL BONDS. IT DOESN'T SAY ANYTHING ABOUT ORDERING ANYTHING. ARE YOU LOOKING FOR THE CAPTION? >> Zanoni: I'M LOOKING AT THE CAPTION COUNCILMAN. >> Barrera: I'M TALKING TO YOU. I JUST WANT TO UNDERSTAND. ALL WE'RE DOING IS WE'RE ADMINISTRATIVELY DECLARING OUR INTENTION TO REIMBURSE OURSELVES FOR $410 MILLION IF WE SHOULD MAKE THE EXPENDITURE. >> Zanoni: RIGHT. THAT'S WHAT SERGIO SAID. >> Barrera: EXACTLY. THIS DOESN'T DECLARE ORDERING ANYTHING. >> Zanoni: WELL, THAT'S COMING UP. >> Barrera: OKAY. BUT I'M TALKING ABOUT THIS AGENDA ITEM. >> Zanoni: OKAY. THAT'S FINE. I THOUGHT THE MAYOR -- >> Barrera: I'M TRYING TO BE CLEAR. I WANT TO TALK ABOUT THE AGENDA ITEM. WE'RE TALKING ABOUT -- BY THE WAY, I DO REMEMBER A CONVERSATION WITH REGARD TO DECLARING GARVER, BECAUSE WE HAD TALKED ABOUT UTILIZING PAPE-DAWSON BUT THEN PAPE-DAWSON WAS CONFLICTED BECAUSE OF THEIR ARRANGEMENT WITH THE EVANGELINE LAGUNA AT THE TIME. WE WERE UTILIZING THEM FOR THE PURPOSE OF REVIEWING ALL THESE PROJECTS THAT WERE COMING TO US BECAUSE EVERYBODY HAD AN IDEA. AND SO AT THAT POINT WE WERE LOOKING FOR A RESOURCE -- THANK YOU FOR NODDING. LET THE RECORD REFLECT THAT HE IS NODDING. WE DECLARED AN EMERGENCY ORDER TO HAVE A REPUTABLE FIRM COME AND PURSUE ALL THESE OTHER PROJECTS AND THEN MR. MOLLY HAD BROUGHT US TO THE CONVEYANCE. BECAUSE WE KNEW THE TDS WAS HIGH. THAT IDEA HAD COME FROM THERE. A LOT OF THAT HAS BEEN ORDERED. BUT THE ITEM ON THE AGENDA IS TO DECLARE INTENT. NOT TO ORDER ANYTHING, NOT TO APPROVE ANYTHING, OTHER THAN DECLARE AN INTENT, WHICH IS ADMINISTRATIVELY REQUIRED IN ORDER FOR US TO BE ABLE TO APPROPRIATE THE FUNDS. AM I CORRECT IN SEEING THAT, SERGIO? >> YES, SIR. >> Barrera: AM I CORRECT IN SEEING THAT, MILES? HE SAYS YES. >> [OFF MIC] >> Barrera: ALL I'M SAYING IS THAT WE'RE CREATING A LITTLE BIT OF CONFUSION BY BREAKING IT UP INTO THREE ITEMS. BY TRYING TO SAY -- ALL WE'RE DOING IS DECLARING OUR INTENT TO REIMBURSE OURSELVES FOR $410 MILLION SHOULD THE FUNDS BE EXPENDED. CAN YOU CONFIRM THAT FOR ME, MR. ZANONI? >> Zanoni: YEAH. I SHOOK MY HEAD, COUNCILMAN. WHAT WE HAD IN BETWEEN THE ONSET OF THIS READING AND THE COUNCIL DIALOGUE IS SOME OF THE COUNCIL MEMBERS SAID I WANT TO VOTE FOR SOME OF THE REIMBURSEMENT BUT NOT ALL OF THEM. >> Barrera: I UNDERSTAND. THAT'S WHY I'M TRYING TO MAKE IT CLEAR. THE KEY WORD HERE IS OUR INTENT TO REIMBURSE OURSELVES. >> Zanoni: THAT'S WHAT IT IS. >> Barrera: THAT'S WHAT I WANTED TO SAY. I JUST WANT TO ADD SOME COMFORT TO MY COLLEAGUES HERE WITH REGARD TO WHATEVER PAPE-DAWSON MAY SAY OR WHATEVER THE SITUATION MAY SAY. I THINK THERE'S TIME TO DEBATE THAT WHEN WE GET TO THE SPECIFIC PROJECT. I THINK ALL OF US UNDERSTAND THE URGENCY. AND I APPRECIATE YOU LEADING THE CHARGE IN THE URGENCY. >> Zanoni: RIGHT. >> Barrera: THAT'S ALL I HAVE FOR NOW, MAYOR. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. I DON'T WANT TO BELABOR THE POINT BUT I DO WANT TO -- I CAN'T BELIEVE I'M SAYING THIS -- BUT CONCUR WITH COUNCILMEMBER BARRERA. [LAUGHTER] >> Paxson: PLEASE DON'T MARK THAT ON A CALENDAR. AND I SYMPATHIZE WITH COUNCILWOMAN VAUGHN BECAUSE I UNDERSTAND THE THREE ITEMS THAT ARE IMMEDIATELY AFTER THIS ITEM ARE PRETTY BIG HURDLES THAT WE HAVE TO FACE WITH A SOBER MIND AND SOME HARD DECISIONS. AND SO I CONCUR WITH THAT. HOWEVER, IN THE INTEREST OF EFFICIENCY OF RUNNING THE MEETING AND ADMINISTRATIVELY BEING ABLE TO PRESIDE OVER THE FOLLOWING THREE ITEMS, I WOULD ARGUE THAT TO LEAVE THEM INTACT AS THEY ARE AND TO MOVE FORWARD WITH ISSUING THE INTENTION, THE POTENTIAL TO ISSUE FUNDS. BECAUSE MY UNDERSTANDING IS IF ANY OF THESE ITEMS WERE TO FAIL, IT WOULD ESSENTIALLY JUST REVERT BACK BECAUSE WE DIDN'T AUTHORIZE THEM. >> Zanoni: RIGHT. YOU'RE RIGHT. YOU CAN DO THAT. I JUST OFFERED AN ALTERNATE. WE RECOMMENDED IT THIS WAY. THAT'S WHY IT'S ON THE AGENDA THIS WAY. BUT IF THE MAJORITY OF THE COUNCIL WANTS TO DO IT SOME WAY DIFFERENT, WE'RE OPEN TO THAT. >> Paxson: I KNOW ALL OF THESE ARE VERY DIFFICULT BUT I THINK WHAT WE HAVE DECLARED WAS THAT WE'RE MAKING WATER SECURITY A PRIORITY. AND THAT WE'RE NOT GOING TO CONTINUE TO DELAY PROJECTS AND THAT WE ARE GOING TO DO EVERYTHING POSSIBLE TO AVOID CURTAILMENT AND ENSURE THIS REGION HAS WATER. IT'S NOT EASY. IT'S NOT FUN. THESE ARE TOUGH DECISIONS BUT WE HAVE TO HAVE THE TOUGH CONVERSATIONS. >> Zanoni: YEAH. WE AGREE, COUNCILWOMAN. >> Paxson: I AGREE. I AGREE THAT THE NEXT ITEMS ARE DIFFICULT BUT I DON'T AGREE IN SPLITTING THEM UP. >> Vaughn: THEY'RE NOT DIFFICULT, I JUST DON'T AGREE WITH BOTH OF THEM BUT TO TRY TO MAKE US CHOOSE -- I'M OUT OF ORDER. >> Mayor Guajardo: YOU'RE OUT OF ORDER, MA'AM. >> Paxson: IT AUTHORIZES THE POTENTIAL TO APPROVE THEM. IT DOESN'T ACTUALLY APPROVE THEM. >> Vaughn: TO ME IT DOES. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: I'M UP NOW. I THINK IT'S SILLY. IT'S TOTALLY BACKWARDS. WE LOOK AT THE ITEM AND WE TALK ABOUT IT FOR RESOLUTION. Y'ALL DO WHATEVER YOU WANT TO, I'LL JUST VOTE NO. WHEN DID THE CITY HIRE GARVER? >> Zanoni: LET ME HAVE NICK ANSWER THAT. >> Winkelmann: JUNE OF 2025 TO DO -- PART OF THE SCOPE WAS WHAT COUNCILMAN BARRERA TALKED ABOUT BRIEFLY. >> Vaughn: YES. I BELIEVE THE WELLS IS WHAT WE WERE TALKING ABOUT IS WHAT HE'S TALKING ABOUT. BUT I DO NOT -- I'M WITH GIL. I DO NOT REMEMBER EVER APPROVING $120 MILLION PIPELINE. I DON'T REMEMBER THAT. SO WHATEVER Y'ALL SAID, I'D LIKE Y'ALL TO TELL ME WHAT MEETING IT WAS SO I CAN GO BACK AND LOOK AT IT. >> Zanoni: NO, THE COUNCIL DID NOT APPROVE THAT. THE COUNCIL DIDN'T APPROVE IT. WE DIDN'T HAVE THE PRICE. >> Vaughn: BUT WE DISCUSSED IT? >> Zanoni: THERE WAS CONCEPTUAL DRAWINGS SHOWN WITH DIFFERENT LOCATIONS. ONE TOOK IT THROUGH DR. GULLEY'S PROPERTY TO THE CUNNINGHAM SITE. THOSE WERE SHOWN BY DREW MOLLY. I THINK YOU MAY HAVE SHOWN, NICK, THE CONVEYANCE DOWN NORTHWEST BOULEVARD. >> Winkelmann: CORRECT. >> Zanoni: WE WEREN'T FOR SURE WHAT WOULD BE THE BEST PATH AND THAT'S WHAT GARVER WAS HIRED FOR TO HELP ASSESS THAT AND THEY DID THAT AND NOW THEY HAVE DETERMINED -- AND NICK'S IN AGREEMENT -- THAT THE BEST CONVEYANCE IS THE ONE THAT WE'RE SHOWING TODAY AT THE PRICE TAG THAT WE'RE SHOWING TODAY. >> Vaughn: OKAY. ALL RIGHT. Y'ALL KNOW HOW I FEEL ABOUT EVANGELINE. I DO NOT AGREE WITH THE WELLS ON THE RIVER Y'ALL ARE DOING. Y'ALL ARE MAKING IT DIFFICULT UP HERE FOR ME TO ABSTAIN OR VOTE NO. IT'S Y'ALL'S CALL. WHATEVER YOU WANT TO DO, THAT'S UP TO Y'ALL. Y'ALL KNOW THE ONE I WANT AND THE ONE I DON'T WANT. I HAVE GOOD REASONS FOR NOT WANTING THEM. THANK YOU. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: WHO IS ON FIRST BASE? I DON'T KNOW IF THIS IS THE RIGHT TIME. LET ME JUST MAKE MY STATEMENT. RUN AS FAST AS YOU CAN. TRY TO SPEND AS LITTLE MONEY AS YOU CAN UNTIL WE HAVE A POSITIVE RESOLUTION ON THE STANDING HEARING. RIGHT? I HEAR YOU. IF YOU FEEL LIKE YOU GOT TO GO, I DON'T KNOW, BUY A MOTOR BECAUSE IT'S A WHATEVER TWO YEAR -- AND IF THIS IS THE APPROPRIATE TIME, I WOULD LIKE TO KNOW HOW MUCH MONEY YOU THINK WE NEED TO SPEND BETWEEN NOW AND MARCH 5th. IF YOU DON'T KNOW, THAT'S OKAY TOO. BUT YOU WANTED TO BRING HIM DOWN SO I WAS GOING TO PUT HIM ON THE SPOT. BUT MY PHILOSOPHICAL POSITION IS I DON'T HAVE A PROBLEM SAYING, HEY, SPEND WHATEVER YOU NEED TO TO MOVE THAT PROJECT ALONG. I WOULD JUST ASK THAT WE TRY TO MINIMIZE EXPENDITURES, UNLESS WE HAVE TO, UNTIL WE HAVE A POSITIVE RESOLUTION AT THE ADMINISTRATIVE JUDGE LAW HEARING. >> Zanoni: IT'S CALLED THE PRELIMINARY HEARING WITH THE ADMINISTRATIVE LAW JUDGE. >> Scott: SORRY. YOU'RE TELLING ME WE'LL KNOW FRIDAY. >> Zanoni: IF THE HEARING IS GOING TO BE ON THE 2nd OF MARCH, THERE'S A TEN-DAY REQUIREMENT TO MAKE THAT POSTED NOTICE. THAT TENTH DAY IS THIS FRIDAY. SO THE JUDGE -- I MEAN, WE'VE HEARD THROUGH THE DISTRICT THAT THE HEARING IS ON THE 2nd. IT'S NOT CONFIRMED SO IT COULD BE ON THE 22nd. COULD BE TWO MONTHS FROM NOW. WE'RE NOT FOR SURE. WHAT WE DO KNOW IS WE HEARD IT'S GOING TO BE ON THE 2nd AND IF IT IS GOING TO BE ON THE 2nd, WE'LL KNOW BY FRIDAY. >> Scott: BY THE WAY, IF IT HAS SOMETHING TO DO WITH WATER AND YOU NEED ME AT A SPECIAL MEETING, CALL THE MEETING, MAYOR, CITY MANAGER. WHEN IT COMES TO WATER -- AND I KNOW WE HAVE X AMOUNT OF DAY REQUIREMENT, BUT I'M ALL IN IF YOU NEED TO CALL US TOGETHER FOR SOME SPECIAL MEETING TO HELP MOVE THE WATER PROJECTS FORWARD IN AN EXPEDITIOUS PACE. I JUST WOULD ASK YOU TO, WHERE YOU CAN, NOT SPEND DOLLARS UNTIL WE HAVE -- AND I HEAR WHAT YOU'RE SAYING. BUT IF THEY DON'T HAVE STANDING, WE'RE OFF TO THE RACES SO THAT'S WHAT WE'RE LOOKING FOR ON THE 2nd. BUT IF THEY DO GET STANDING, I THINK THAT MIGHT CHANGE. YOU SAID YOU'RE GOING TO HAVE A CONVERSATION. I'M HOPEFUL THAT YOU DON'T COME TO US ON THE 17th AND GO, HEY, MAN. WE SPENT $100 MILLION AND NOW WE'RE GOING TO HAVE A ONE TO TWO-YEAR DELAY AND WE HAVE TO TALK THROUGH WHAT WE'RE GOING TO DO ABOUT THAT EXPENDITURE. >> Zanoni: THAT MIGHT HAPPEN. WE HAVE ALREADY SPENT -- NICK MIGHT KNOW THE NUMBER. ON THE EVANGELINE PROJECT, WE SPENT SEVERAL MILLION AT THIS POINT. >> Winkelmann: WE COMMITTED TO A FULL DESIGN, WHICH WAS APPROXIMATELY $30 MILLION. THERE'S ADDITIONAL EFFORTS AS WELL, INCLUDING THE SURVEYING, LEGAL FEES, STAFF TIME. THERE'S SIGNIFICANT COMMITMENTS TO DATE WITH THE EVANGELINE. >> Scott: WHEN DO WE START PROCURING PIPES? >> Zanoni: THAT'S WHAT THIS ITEM IS FOR. >> Scott: THAT'S MY POINT. I GET THAT WE GOT TO DESIGN THIS, BECAUSE WE'RE GOING TO GET THE PERMIT EVENTUALLY. I'M NOT SURE -- I'M NOT SURE I'M EXCITED TO SEE US SPEND MILLIONS OF DOLLARS ON PROCURING ITEMS, PHYSICAL ITEMS IF WE DON'T HAVE TO. AND I HAVEN'T HEARD ANYBODY COME DOWN AND SAY, MARK, WE GOT TO BUY SIX PUMPS BY THE 1st OR IT'S 2030. >> Zanoni: CHRIS WILL SAY SOMETHING ALONG THOSE LINES, BECAUSE HE'S TOLD THAT TO US. >> Scott: IS THIS THE RIGHT ITEM TO ASK? >> Zanoni: IT'S NOT THE RIGHT ITEM. >> Scott: THAT'S WHY I WAS ASKING WHO IS ON FIRST. CLEARLY, I'M NOT. >> Mayor Guajardo: 16. >> Zanoni: NO. 16. >> Mayor Guajardo: MARK, WE'RE GOING TO COME BACK TO THAT. COUNCILMAN CANTU. >> Cantu: WHAT'S THE $120 MILLION FOR? THE PUMP STATION? WHAT PROJECT IS THAT FOR AGAIN? >> Winkelmann: SO ITEM NO. 15 IS THE BRACKISH GROUNDWATER RO TREATMENT. SO THE TREATMENT EQUIPMENT, THE MODULAR TREATMENT EQUIPMENT WILL BE AT O.N. STEVENS. WE WILL NEED A PUMP STATION AT THE WESTERN WELLFIELD TO PUMP THE WATER TO O.N. STEVENS THROUGH A CONVEYANCE LINE. SO THE $120 MILLION IS FOR THAT PUMP STATION AT THE WESTERN WELLFIELD, THE CONVEYANCE LINE, AND ALSO OUR EFFORTS FOR HANDLING THE DISCHARGE OR THE EFFLUENT -- >> Cantu: WE'RE NOT GOING TO BID THAT OUT, WE'RE GOING TO DO EMERGENCY ORDERS AND GET IT DONE? >> Winkelmann: YEAH. JUST LIKE THE EVANGELINE PROJECT AND OUR OTHER PROJECTS, TIME IS OF THE ESSENCE AND WE'RE MOVING FAST. I'VE GOT IT IN A PRESENTATION HOW WE'RE GOING TO GO THROUGH AND HANDLE EACH PORTION OF THAT PROJECT. >> Cantu: I GET IT. I KNOW WE NEED TO GET THIS DONE BUT, GOD, THIS IS A LOT OF MONEY WITHOUT BIDDING IT OUT. ONE OTHER THING THAT BOTHERS ME IS WHAT'S GOING ON WITH THE CONTRACTS FOR THE REFINERIES? HAVE WE GOT ANY CONTRACTS FROM THEM? WE'RE GOING TO SPEND ALL THIS MONEY AND WE HAVE SOMEBODY IN THE CITY HALL IS TELLING THE REFINERY TO GO FIND YOUR OWN WATER. WE'RE GOING TO SPEND ALL THIS MONEY NOT KNOWING WHAT THE REFINERY IS GOING TO DO. THEY'RE GOING TO GO FIND THEIR OWN WATER, DO THEIR OWN WELLS, DO WHATEVER THEY'RE GOING TO DO. I JUST DON'T UNDERSTAND WHY WE DON'T HAVE CONTRACTS YET FOR THE REFINERIES. I DON'T SEE WHY WE'RE NOT MAKING THAT A PRIORITY. I KNOW Y'ALL HAVE A LOT ON YOUR PLATE BUT GO GET A CONSULTANT AND HAVE THEM DO IT. WE'VE GOT TO GET THOSE CONTRACTS IN. I MEAN, WE HAVE SO MUCH MONEY WE'RE SPENDING AND, YOU KNOW, AFTER EVERYTHING'S DONE THEY'RE GOING TO SAY, OH, HEY. WE'VE GOT ANOTHER WATER SOURCE. IT'S A LOT OF MONEY. I MEAN, EVERY COUNCIL MEETING WE'RE SPENDING MILLIONS OF DOLLARS AND IT'S SCARY BECAUSE I JUST FEEL LIKE WE'RE GOING TO BANKRUPT THE CITY BECAUSE WE'RE SO WORRIED ABOUT THE REFINERIES RIGHT NOW, YOU KNOW, GETTING WATER. AND THAT'S FINE BUT WE NEED TO GET CONTRACTS IN PLACE, YOU KNOW, AND MAKE SURE THAT THEY'RE GOING TO BUY UP THE WATER FROM US STILL. YOU KNOW? >> Winkelmann: COUNCILMAN, AS PART OF THE NEXT ITEMS, I HAVE IMPACTS SO YOU'LL BE ABLE TO SEE THOSE. I'LL PRESENT THOSE IN DETAIL. >> Cantu: THANK YOU. >> Mayor Guajardo: COUNCILMAN BARRERA. >> Barrera: I JUST WANT TO ADD THAT WE HAVE VALERO IS ENGAGED INTO A CONTRACT WITH US SO THAT WAY THEY CAN BUILD A PIPELINE IN ADDITION TO USING THE EFFLUENT. IN ADDITION, WE ALSO ENGAGED IN A CONTRACT WITH FLINT HILLS TO DO THE VERY SAME THING. I KNOW THEY'RE LOOKING FOR RESOURCES AND THEY'RE LOOKING TO THE CITY FIRST. I DO KNOW THAT THEY ARE LOOKING FOR TEMPORARY SOURCES BUT THEY'RE WAITING FOR CERTAINTY FROM US. THE APPROPRIATION OF THESE FUNDS ALLOWS THEM TO BE ABLE TO PLAN, ONCE WE GET CERTAINTY. AND AT THAT POINT, ONCE WE KNOW WE HAVE WATER FLOWING, AT THAT POINT -- BECAUSE IT'S THE SAME THING. WE CAN'T ENGAGE IN A CONTRACT IF WE DON'T HAVE A PRODUCT TO SELL. ONCE WE HAVE THAT PRODUCT AND WE'VE SHOWN THAT WE HAVE AN INTEREST IN SECURING WATER, AT THAT POINT THEY HAVE TO ASSESS THE SECURITY OF IT. I MEAN, THEY HAVE TO HAVE THE VALIDITY OF THAT SECURITY. I WANT TO MAKE THE PUBLIC UNDERSTAND THAT WE HAVE TO HAVE A PRODUCT TO SELL. WE CAN'T ENGAGE INTO A CONTRACT IF WE DON'T HAVE A PRODUCT TO SELL. THANK YOU. I MOVE FOR APPROVAL. >> Mayor Guajardo: OKAY. I'M GOING TO ASK FOR PUBLIC COMMENT. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE COMMENT ON ITEM NO. 14. THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. WE HAVE A MOTION. WE HAVE A SECOND. >> [OFF MIC] >> Cantu: I SECONDED. >> Mayor Guajardo: BUT IF WE DO THAT, THEN WE CAN'T -- THESE ITEMS THAT FOLLOW -- >> Zanoni: I THINK THE COUNCILWOMAN'S MOTION WAS TO TABLE IT TO HAVE IT BROKEN OUT AND DO ONE AT A TIME WITH THE THREE ITEMS. >> TODAY? >> Zanoni: TODAY. >> Mayor Guajardo: WHAT ABOUT THESE NEXT ITEMS? >> Zanoni: THERE'S THREE REIMBURSEMENTS ON NO. 14. FOR THREE DIFFERENT WATER ITEMS. SO THE REIMBURSEMENT RESOLUTION WOULD BE DONE THREE DIFFERENT TIMES, ONE FOR EACH OF THE THREE ITEMS. SO LIKE THE EVANGELINE ONE IS $197 MILLION OF THE 410. SO THE COUNCIL, UNDER VAUGHN'S SCENARIO, WOULD RECONSIDER THE REIMBURSEMENT OF $197 MILLION AT THE SAME TIME AS CONSIDERING THAT CONTRACT. I DON'T KNOW IF TABLING IS THE RIGHT WORD BUT IT'S TAKE THE ONE AGENDA ITEM AND SPLIT IT INTO THREE AND HANDLE IT AT EACH OF THE WATER PROJECT ITEMS. NO. 15, 16, AND 17. >> Mayor Guajardo: RIGHT. NO, I HEAR YOU. HOLD ON. COUNCILMAN HERNANDEZ. >> Hernandez: ACTUALLY, IF I MAY MAKE THE SUGGESTION. YOU KNOW, OUR DIRECTOR OF FINANCE HERE -- WHAT'S YOUR TITLE? >> DIRECTOR OF FINANCE AND PROCUREMENT. >> Hernandez: NORMALLY THE REQUEST COMES AFTER YOU ACTUALLY GO THROUGH THE AGENDA ITEMS, NOT BEFORE. YOU KNOW, I THOUGHT HER MOTION WAS TO TABLE UNTIL AFTER WE REVIEWED THE ITEMS AND THEN DO THIS PARTICULAR ITEM. SO AFTER WE'VE REVIEWED THEM. >> Zanoni: WE COULD. WE HAD LEGAL ADVICE THAT IN ORDER TO APPROVE THE ITEM YOU HAD TO HAVE THE MONEY. YOU NEED TO SAY, YES, WE'RE GOING TO REIMBURSE OURSELVES. WE'RE GOING TO TAKE THE MONEY FROM THE CASH POOL TODAY. THE MONEY'S THERE AND THEN YOU CAN APPROVE THE PROJECT. IF YOU APPROVE THE PROJECT WITHOUT HAVING THE MONEY AND YOU DON'T APPROVE THE REIMBURSEMENT, YOU COULD HAVE A PROBLEM WITH THE CONTRACT. >> Mayor Guajardo: RIGHT. BUT IT'S ESSENTIALLY THE SAME THING. YOU'RE JUST BREAKING IT INTO EACH -- >> Hernandez: RIGHT. >> Zanoni: WE CAN ALWAYS GO BACK. >> Hernandez: WHEN YOU ASK FOR THE REIMBURSEMENT BEFORE YOU EXPLAIN WHAT YOU'RE SPENDING, IT SEEMS A LITTLE BACKWARDS AND IT'S NOT NORMALLY THE WAY WE DO IT. NORMALLY WE HAVE PROCUREMENT FOR IT BEFORE WE GO TO CONSTRUCTION. SO YOU'RE ASKING FOR THE MONEY BEFORE WE EVEN KNEW ABOUT THE DESIGN. >> Zanoni: YOU'RE RIGHT. I MEAN, I'M NOT GOING TO DENY THAT. THAT'S TRUE. >> Hernandez: IT MAY BE NORMAL FOR YOU. >> Zanoni: YOU'RE CORRECT, COUNCILMAN. THAT'S EXACTLY HOW IT'S DONE. WHAT WE PROBABLY SHOULD HAVE DONE IS HAVE NICK DO A HIGH-LEVEL SUMMARY OF THE THREE PROJECTS AND THEN HAVE SERGIO GO OVER THE REIMBURSEMENT RESOLUTION AND THEN GO INTO THE THREE PROJECTS. >> Hernandez: RIGHT. NORMALLY THE DESIGN IS MUCH LOWER COST AND THAT'S NOT -- >> Zanoni: NORMALLY IT'S IN THE CAPITAL BUDGET ALREADY APPROVED. >> Hernandez: WE HAVE A LOT OF FOREKNOWLEDGE OF IT. THIS ONE IS KIND OF LIKE WHEN DID WE DO THAT? >> Zanoni: YOU'RE EXACTLY RIGHT. [MULTIPLE VOICES] >> Hernandez: THANK YOU. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: MILES, I THINK YOU SHOULD ACTUALLY BE ABLE TO LOOK THIS UP BECAUSE I'M PRETTY SURE THAT THE WAY WE'RE DOING IT RIGHT NOW, YOU HAVE TO BE ABLE TO VALIDATE THE SOURCE. BECAUSE IF WE GO THROUGH AND WE VOTE AND WE VOTE YES OR NO. BUT IF WE COMMIT TO THAT PROJECT AND WE DON'T HAVE THE SOURCE, THERE'S A PARTICULAR LINE THAT SPEAKS DIRECTLY TO WHAT TYPE OF EXPOSURE WE HAVE ON THAT. I KNOW THIS IS THE WAY -- >> Risley: YEAH. YOU CAN'T EXECUTE A CONTRACT IF YOU DON'T HAVE THE MONEY TO SPEND. YOU CAN'T GET THAT PROCESS BACKWARDS BECAUSE YOU HAVE TO HAVE -- ONE OF THE FUNDAMENTALS OF PUBLIC FINANCE IS THAT YOU ACTUALLY HAVE THE MONEY IDENTIFIED THAT YOU'RE GOING TO SPEND BEFORE YOU SPEND IT. SO YOU DON'T SPEND IT TWICE. >> Roy: IT DOESN'T MEAN IF THE PROJECT FAILS OR WE STOP THE PROJECT, WE'RE NOT GOING TO USE THE FUNDS, RIGHT? >> Risley: RIGHT. A REIMBURSEMENT RESOLUTION ONLY SAYS THAT IF YOU SPEND THE MONEY, YOU'RE GOING TO REIMBURSE WITHIN 18 MONTHS OF THAT EXPENDITURE FROM THAT BOND THAT YOU ISSUE. AND THE BOND DOESN'T GET ISSUED UNTIL 2027. IF YOU DON'T SPEND THE MONEY, THEN YOU COULD REALLOCATE THOSE FUNDS. >> Roy: I ACTUALLY REMEMBERED -- I'M TRYING TO REMEMBER WHAT THE ACTUAL VERBIAGE IS. >> Zanoni: IT'S IN THE CHARTER. WE'VE TAKEN THIS FROM THE CHARTER. >> Mayor Guajardo: OKAY. SO, WE HAVE A MOTION AND A SECOND. >> Barrera: TABLING. >> City Secretary: THE MOTION AND A SECOND WAS TO APPROVE THE ORDINANCE, THE RESOLUTION AS PRESENTED. THAT'S WHAT WAS FORMALLY MADE. IF THEY WANT TO WITHDRAW IT, THEY CAN. >> [OFF MIC] >> City Secretary: IT WAS A MOTION AND A SECOND TO APPROVE IT. >> Mayor Guajardo: NO, THEY'RE SAYING -- >> City Secretary: SHE DID NOT MAKE A MOTION. JUST FOR THE RECORD. COUNCILMEMBER VAUGHN, HER INTENT WAS TO DO ONE BUT SHE DID NOT DO ONE. SO THAT'S WHAT HAPPENED. >> Mayor Guajardo: OKAY. SO WE HAVE A MOTION AND A SECOND FOR THE ORDINANCE AS PRESENTED. PLEASE SUBMIT YOUR VOTE. >> AS PRESENTED. >> Mayor Guajardo: YES. >> [OFF MIC] >> [OFF MIC] >> Mayor Guajardo: GUYS, WE'RE VOTING ON THE ORDINANCE AS PRESENTED. AS PRESENTED. >> [OFF MIC] >> Mayor Guajardo: RIGHT. THE MOTION CARRIES. ITEM NO. 15 IS AN ORDINANCE AUTHORIZING A CONTRACT WITH FCC AQUALIA USA CORP. OF KATY, TEXAS FOR DESIGN, PROCUREMENT, ASSEMBLY, COMMISSIONING AND OPERATION OF A CONTAINERIZED BRACKISH WATER DESALINATION PLANT IN AN AMOUNT OF $43,548,474 FOR THE CCW CONTAINERIZED BRACKISH WATER TREATMENT PLANT PROJECT AUTHORIZING CONSTRUCTION CONTRACTS FOR ANCILLARY IMPROVEMENTS REQUIRED FOR THE BRACKISH TREATMENT PLANT IN AN A AMOUNT UP TO $11,451,526 AUTHORIZING EMERGENCY CONSTRUCTION CONTRACTS FOR THE PUMP STATION AND CONVEYANCE SYSTEM FROM THE WESTERN WELLFIELD TO O.N. STEVENS WATER TREATMENT PLANT. >> Winkelmann: NICK WINKELMANN, CHIEF OPERATING OFFICER CCW. I WOULD FIRST LIKE TO RECOGNIZE SOME OF THE TEAM THAT'S IN THE AUDIENCE TODAY. WE HAVE AVA ARNEZ GARCIA. WE HAVE REBECCA MARCUCCI. WE HAVE TAYLOR WITH GARVER ENGINEERING AND BUDDY WITH GARVER ENGINEERING AS WELL. THEY ARE BEHIND ME. FIRST WE'RE GOING TO GO THROUGH THIS PROJECT, HOW IT'S PUT TOGETHER. SO WE'RE GOING TO REVIEW THE PROJECT SCOPE. I'LL GO OVER THE DELIVERY TEAM, SOME OF THE REFERENCES AND EXPERIENCES THAT THE TEAM HAS. WE'LL GO OVER PROJECT COSTS AND AS PROMISED WE WILL GET INTO THE RATE IMPACTS. PROJECT SCOPE CONSISTS OF THREE DIFFERENT ITEMS. IT'S A PUMP STATION AT THE WESTERN WELLFIELD. IT IS A CONVEYANCE LINE FROM THE WESTERN WELLFIELD TO THE O.N. STEVENS TREATMENT PLANT AND IT IS A MODULAR CONTAINERIZED BRACKISH WATER TREATMENT PLANT LOCATED AT OUR O.N. STEVENS TREATMENT PLANT. FIRST BULLET I HAD IS THE WESTERN WELLFIELD PUMP STATION. THE DESIGN IS A 3 MILLION-GALLON GROUND STORAGE TANKS AND PUMPS CAPABLE OF DELIVERING 24 MGD WITH REDUNDANCY TO O.N. STEVENS. IT WILL ALSO INCLUDE CONNECTION TO NEW AND EXISTING WELLS. THIS PART OF THE PROJECT IS CURRENTLY BEING DESIGNED BY CCW STAFF AND ENGINEERS. THERE'S A CONCEPTUAL DRAWING ON THE LEFT OF THE SLIDE. THE NEXT SLIDE DISCUSSES THE CONVEYANCE PIPELINE. THIS IS A 36-INCH PVC AND HDPE PIPELINE. THE PATH SELECTED IS PRIMARILY ALONG NORTHWEST BOULEVARD OR FM 624. IT WILL BE INSTALLED IN THE RIGHT-OF-WAY WITH TxDOT COORDINATION. THE INSTALLATION OF THIS PIPELINE, WHICH IS INCLUDED IN THAT $120 MILLION, WILL BE PERFORMED PARTIALLY BY CCW AND ALSO BY MULTIPLE LOCAL CONTRACTORS WITH EMERGENCY CONSTRUCTION CONTRACTS ISSUED TO THEM. AT THE O.N. STEVENS TREATMENT PLANT, THERE WILL BE A CONTAINERIZED BRACKISH WATER TREATMENT EQUIPMENT. THIS IS DESIGNED FOR QUICK DELIVERY. THE TREATED WATER DELIVERY SCHEDULE IS 3.91 MGD IN 11 MONTHS. WE'LL HAVE A TOTAL -- THESE ARE TOTALS. 9.24 MGD, THAT'S TREATED WATER, IN 14 MONTHS. 14.56 MGD IN 18 MONTHS. AND 21.3 MGD IN 24 MONTHS, OR TWO YEARS. AN IMPORTANT THING TO NOTE -- AND I WILL GET INTO THIS IN DETAIL LATER -- BUT THE FIRST PHASE OF THE PROJECT IS WITH -- WE CALL IT OUR PHASE 1 SKIDS. YOU CAN ACTUALLY SEE THEM THERE IN THE GRASSY FIELD THERE. THOSE ARE SKIDS AND CONTAINERIZED MODULAR UNITS WE CAN GET TO O.N. STEVENS QUICKLY. THEY WILL NOT BE PART OF THE FINAL PLANT. I'LL GO THROUGH THAT IN A LITTLE MORE DETAIL LATER. SO THE PICTURE ON THE SLIDE IS THE FULL PLANT. SO WHAT I HAVE CIRCLED IS THE FIRST PHASE SO THAT WE COULD DELIVER THAT 3.94 MGD IN 11 MONTHS. THAT IS THE EQUIPMENT THAT IS CIRCLED. THE EQUIPMENT TO THE RIGHT WOULD BE THE PERMANENT EQUIPMENT SETUP. THE TEMPORARY UNITS WOULD BE UTILIZED UNTIL THE FULL PLANT IS ONLINE. THAT ALLOWS US TO GET WATER TREATED AS QUICK AS POSSIBLE. THE PERMANENT PLANT WOULD BE TREATMENT OF 24 MGD AND IT WILL PRODUCE 21.3 MGD OF TREATED WATER. THAT'S EIGHT RO RACKS WITH A PRODUCTION CAPACITY AS SHOWN FOR A TOTAL OF 14 MGD. THE PLAN IS TO BYPASS 7.3 MGD. AGAIN, THE GOAL IS TO MAKE THIS AS QUICK AS POSSIBLE AND TO BE AS COST EFFICIENT AS POSSIBLE. SO WE WILL NOT TREAT 7.3 MGD OF THE RAW WATER THROUGH THE RO. THE REMAINING BALANCE WILL BE TREATED THROUGH RO AND THEN WE BLEND IT BACK TOGETHER. THERE WILL BE EIGHT PRESSURIZED FILTERS. THAT IS SHOWN ON THE BOTTOM PORTION OF THE DRAWING. THEY WILL HAVE ZEOLITE MEDIA THAT WILL REMOVE IRON, MANGANESE ARSENIC AND URANIUM. THERE WILL BE 54 CARTRIDGE FILTERS FOR FINAL PROTECTION OF THE MEMBRANES AND THE RECOVERY FOR THE RO IS SET AT 85%. AS YOU SAW FROM THE PREVIOUS PICTURE, ALL OF THAT EQUIPMENT NEEDS TO BE ON A CONCRETE FOUNDATION SO ONE OF THE APPROVAL ITEMS IN THIS MEMO IS CONCRETE FOUNDATION WORK AT O.N. STEVENS. THERE WILL BE ELECTRICAL WORK WITH AEP TO PROVIDE 3,130 KILOWATTS OF POWER FOR THE PROJECT. WE HAVE PREVIOUSLY WORKED WITH AEP AND THAT POWER IS AVAILABLE. THERE WILL BE A RAW WATER TANK AT THE SITE AS WELL. AND THEN WE'LL HAVE EFFLUENT DISPOSAL. THE EFFLUENT DISCHARGE, A COUPLE OF THINGS I WOULD LIKE TO MENTION. SO THE PHASE PRODUCTION -- AND I SHOWED THE TREATMENT AND PRODUCTION SCHEDULE -- ALLOWS US TO LOOK AT MULTIPLE OPTIONS THAT WILL GIVE US OPERATIONAL FLEXIBILITY. THE TEAM WILL WORK WITH TCEQ TO IDENTIFY THE BEST PATH. SO THE OPTIONS THAT WE HAVE IDENTIFIED IS EVAPORATIVE PONDS, INJECTION WELL, AND A TCEQ DISCHARGE PERMIT. THE REALITY IS IT'S LIKELY THAT AS THAT FIRST UNIT COMES ONLINE FOR THAT 3.94 MGD, IT MAY BE THE QUICKEST THING TO DO WITH TCEQ APPROVAL TO USE EVAPORATIVE BONDS. WITH THAT PROCESS AND THAT STEP, AS YOU START WITH A SMALLER CAPACITY, THE DISCHARGE OPTION POTENTIALLY OF EVAPORATIVE PONDS , THEN YOU CAN WORK WITH TCEQ AND POSSIBLY ADD AN INJECTION WELL LATER. THE PROJECT TEAM. HOW ARE WE GOING TO GET THIS DONE AND HOW ARE WE GOING TO GET THIS DONE QUICKLY? GARVER ENGINEERING, THEY WILL HANDLE THE DESIGN OF THE CONVEYANCE LINE. AND THIS IS NOT A SET OF BID DOCUMENTS. WE ARE LOOKING FOR EMERGENCY CONSTRUCTION CONTRACTS. THAT'S PART OF THE 120 MILLION. THEY WILL BE PRODUCING DRAWINGS AND DOING PIPELINE ALIGNMENTS SO THAT WE CAN GET STARTED AS QUICK AS POSSIBLE. GARVER IS ALSO -- WILL BE WORKING WITH CCW WITH TCEQ ON THE EFFLUENT, HANDLING THE EFFLUENT AND THE TCEQ PERMITTING OF THIS NEW TREATMENT PLANT. AQUALIA MDS, THEIR OPERATING DIVISION, THEY WILL BE DESIGNING THE REVERSE OSMOSIS TREATMENT EQUIPMENT. THEY WILL PROVIDE AND INSTALL THE EQUIPMENT. THEY WILL PROVIDE OPERATIONAL START-UP AND THEY WILL HAVE FIVE FULL YEARS OF OPERATIONS OF THAT SAME EQUIPMENT PROVIDING PRICE CERTAINTY AND OPERATIONAL GUARANTEES. THE CITY HAS AN EXISTING MSA WITH HDR FOR ELECTRICAL IMPROVEMENTS AT O.N. STEVENS. THE PLAN IS TO UTILIZE THAT MSA TO WORK THROUGH WITH AEP THE BEST PATH TO GET POWER TO THE NEW PLANT AT THE O.N. STEVENS SITE. CCW ITSELF, JUST LIKE WE DESIGNED THE WELLFIELDS, WE WILL DESIGN THE WELLFIELD PUMP STATION AND WE'LL ALSO BE COMPLETING PARTIAL INSTALLATION OF THE CONVEYANCE LINE WITH OUR CREWS. LOCAL CONTRACTORS -- AND WE'RE ANTICIPATING MULTIPLE CONTRACTORS FINISHING THE CONVEYANCE LINE. AND THEN WE'VE GOT THE CONCRETE WORK AT O.N. STEVENS AND THE OTHER UPGRADES AT O.N. STEVENS. IF I COULD TALK A LITTLE BIT ABOUT AQUALIA AND MDS. SOME KEY POINTS FOR THEM IS THEY SERVE 44.8 MILLION PEOPLE. THEY WORK IN 18 DIFFERENT COUNTRIES. THEY HAVE 14,000 EMPLOYEES. THEY'RE WORKING WITH 2300 MUNICIPALITIES AND YOU CAN SEE THE AMOUNT OF DRINKING WATER PLANTS THEY'RE WORKING ON AND WASTEWATER TREATMENT PLANTS AS WELL. THEY HAVE EXTENSIVE EXPERIENCE IN DESALINATION AND BRACKISH GROUNDWATER TREATMENT. AND WITH THE NEXT SLIDE I'LL SHOW YOU WHAT THEY'RE DOING IN TEXAS. THEY HAVE 270 EMPLOYEES IN TEXAS. THEY ARE OPERATING A BRACKISH RO PLANT IN BRAZORIA COUNTY AND THEY OPERATE 100 DRINKING WATER PLANTS IN TEXAS AS WELL. THE MAP ON THE RIGHT SHOWS THE LOCATIONS WHERE THEY OPERATE, WHERE THE ENTITIES WHERE THEY SERVE. THE RED DOTS ARE THEIR OFFICES IN THE HOUSTON -- GREATER HOUSTON AREA. FISCAL IMPACT. SO IT'S 43.5 MILLION FOR AQUALIA, THEIR DESIGN PROCUREMENT AND COMMISSIONING ACTIVITIES. $11.4MILLION FOR THE REQUIRED CIVIL WORK AT O.N. STEVENS. THAT INCLUDES TANK FOUNDATIONS, THE CONCRETE WORK, THE INNER CONNECTIONS, THE ADDITIONAL GROUND STORAGE TANK. THE PUMP STATION, CONVEYANCE LINE, AND EFFLUENT IS ESTIMATED AT $120 MILLION. AGAIN, THOSE WILL BE PROCURED UNDER EMERGENCY CONSTRUCTION SU GOING TO AMEND A COUPLE OF PROJECTS IN THE CAPITAL IMP IMPROVEMENT PLAN. THERE IS A BRACKISH GROUND WATE TREATMENT PLAN IN THE PLAN, OF COURSE WE'LL HAVE TO MOVE THAT FORWARD BECAUSE TIME IS OF THE ESSENCE. PAVEMENTS W PAYMENTS WILL FOLLO DEFINED MILESTONES ACROSS ENGINEERING, FABRICATION, AND SHIPMENT RECEIPT AND APPROVAL. THE OPERATIONS ITSELF OF THE TREATMENT PLAN, IT'S A FIVE-YEA AGREEMENT; HOWEVER, I WILL SAY THAT IT STARTS EARLY BECAUSE WE'RE GOING TO BRING SOME WATER ONLINE, SO YOU'LL SEE LATER IT' THE SEVEN YEARS BECAUSE IT'S GOING TO TAKE TWO YEARS TO GET UP TO THE FULL OPERATING CAPACITY. BUT MDS AND AQUALIA WILL PROVID LICENSED TCQ OPERATORS, PROVIDE TRAINING FOR CCW PERSONNEL. THERE IS A MAXIMUM ENERGY CONSUMPTION GUARANTEE AND A FINAL WATER QUARANTINE. AS PART OF THAT OPERATIONS AGREEMENT, THEY WILL BE OPERATING AND MAINTAINING THE EQUIPMENT. HERE IS THE DETAIL OF THE OPERATIONS AGREEMENT. THIS WILL BE INCLUDED IN OUR OPERATIONAL BUDGET, COME NEXT FISCAL YEAR. YOU CAN SEE HOW THE OPERATION COSTS RAMP UP AS THE CAPACITY O THE PLANT RAMPS UP. AGAIN, IT'S -- THIS IS A PHASE PROJECT. WE'LL HAVE PARTIAL OPERATIONS AFTER 11 MONTHS. WE'LL HAVE FULL TREATMENT CAPACITY WITHIN TWO YEARS, AND THEN WE'LL HAVE THAT FULL FIVE YEARS OF OPERATIONAL CONTRACTS STARTING THEN. THE OPERATIONAL AGREEMENTS INCLUDES CHEMICAL AND OPERATION COST. AGAIN, IT'S THE ENERGY CONSUMPTION AND THE LICENSED OPERATORS AND THE FINAL WATER QUALITY GUARANTEE, ALL OF WHICH WE'RE VERY SUPPORTIVE. WHEN YOU LOOK AT THE PROJECT COST, PART OF THIS PROJECT, OF COURSE, IS THE $28 MILLION OF WATER RIGHTS PURCHASE THAT WAS APPROVED LAST COUNCIL MEETING, SO THAT'S THE FIRST COLUMN ON THE SLIDE. THAT WAS APPROVED. THE CAP X, ALL OF THOSE TOTALS IS APPROXIMATELY 175-POINT IT MILLION DOL DOLLARS. TOTAL CAP EXWITH WATER RI RIGHTS, $203.2 MILLION. AND THEN WE ARE -- WE HAVE AN ESTIMATED ANNUAL OPERATING EXPENSE OF 8.4 MILLION. OF COURSE, IT RAMPS UP OVER THE FIRST TWO YEARS. I DO WANT TO POINT OUT THAT THAT DOES INCLUDE THE ELECTRICAL COST, USING THE ELECTRICAL GUARANTEES THAT THE DESIGNER HAS PROVIDED AQUALIA. SO THIS IS A RAW WATER PROJECT. THE CURRENT RAW WATER RATE ACROSS ALL CUSTOMERS IS $1.18 PER ONE THOUSAND GALLONS. THIS PROJECT AT FULL COMPLETION WILL INCREASE THAT RAW WATER RATE TO $1.74 PER 1,000 GALLONS OR AN INCREASE OF 56 CENTS PER 1,000 GALLONS. AN IMPORTANT THING TO NOTE IS THERE IS POTENTIAL FOR HOUSE BILL FIVE HUNDRED GRANT WHICH IS $25 MILLION, STAFF IS PURSUING THAT GR GRANT. WE HAVE COMMENTED TO THE TEXAS WATER DEVELOPMENT BOARD ON THE REQUIREMENTS OF THAT GRANT, AND THEY ARE CERTAINLY AWARE OF OUR INTEREST. THE FINANCIAL NUMBERS DO NOT INCLUDE ANY GRANT FUNDING, SO IF WE DO RECEIVE GRANT FUNDING, THEY WOULD BE LO LOWER. WHEN YOU LOOK AT THE ESTIMATED MONTHLY ESTIMATED WATER BILL IMPACT FOR THIS PROJECT, FOR A RESIDENTIAL RATE PAYER USING 6,0 6,000 GALLONS OF WATER PER MONTH, THE RATE IMPACT PER MONTH WOULD BE $3.38. A COMMERCIAL BUSINESS USING APPROXIMATELY TO THOUSAND GALLONS PER MONTH, THE RATE IMPACT WOULD BE $11.26 PER MONTH. LARGE VOLUME USER, THE ESTIMATED MONTHLY RATE IMPACT FOR THIS PROJECT WOULD BE AN ADDITIONAL $5$50,687 PER MONTH. WE FEEL VERY STRONGLY THAT THIS PROJECT HAS A LOT OF BENEFITS, INCLUDING COMING ONLINE IN AN EXPEDITED FASHION. I DO -- I DID LIST THEM OUT HERE SO THAT WE COULD TALK ABOUT THEM. ONE IS IT -- THIS WILL BE ANOTHER WATER TREATMENT PLAN FOR THE CITY. WE HAVE THE ONE PLAN AT OW OWENS STEVENS. THIS IS ANOTHER WATER SOURCE THAT CAN BE TREATED AND WOULD BE TREATED WITH THIS PROJECT. THERE'S GUARANTEED OPER OPERATIONAL EXPENSE FOR PARTIAL DELIVERY FOR TWO YEARS, AND FOR FULL DELIVERY FOR THE FIVE YEARS AFTER THAT. WE'RE SHIFTING OPERATIONAL RISK TO THE CONTRACT OPERATOR. THIS IS AN EFFICIENT USE OF OUR GROUND WATER RESOURCES. ONE THING I DO WANT TO BRING UP -- I KNOW WE TALKED ABOUT IT IN THE PAST, BUT THERE ARE WHAT WE CALL CARRIAGE LOSSES IN THE RIVER, WHEN WE USE THE RIVER AS A CONVEYANCE, IT'S ESTIMATED WE LOSE ABOUT 7% OF THE WATER PUMPED THROUGH CARRIAGE LOSSES, IN OTHER WORDS, IT STAYS WITHIN THE ENVIRONMENT AND DOESN'T MAKE ITS WAY TO OWENS STEVENS, SO THIS ALLOWS US TO UTILIZE ALL OF THE GROUND WATER THAT WE ARE PUMPING. THE TEMPORARY UNITS -- AND I SHOWED YOU ON THE CHART, THOSE TEMPORARY UNITS THAT WE'LL USE AT THE BEGINNING OF THE PROJECT, THEY WILL R REMAIN CITY PROPERTY, AND THEY CAN BE DEPLOYED AS NE NEEDED. I KNOW YOU MAY ASK ME WHERE THEY MIGHT BE DEPLOYED. I DON'T KNOW. WE'RE NOT EXACTLY SURE HOW THINGS ARE GOING TO COME UP, BUT WE DO KNOW THAT THOSE UNITS CAN BE UTILIZED BENEFICIALLY IN THE FUTURE. THE OTHER BENEFIT IS PROJECT COSTS AND VALUE. THIS IS A VERY COMPETITIVE PROJECT THAT HAS BEEN PUT TOGETHER FOR A COUPLE OF REASONS. IT'S BEEN PUT TOGETHER FOR TIME TO HELP US WITH OUR WATER SITUATION, AND TO PROVIDE AN EXPEDITED SOLUTION FOR NEW WATER SUPPLY AND TO TREAT THE WATER. STAFF IS RECOMMENDING APPROVAL OF THIS WORK SO THAT WE CAN GET STARTED AND MOVE FORWARD. WE WERE VERY EXCITED WITH THE APPROVAL OF THE $28 MILLION OF GROUND WATER RIGHTS LAST WEEK, AND THAT IS WHY THIS ITEM IS FOL FOLLOWING THE FOLLOWING COUNCIL MEETING. AND WITH THAT, I'LL STAND BY FOR QUESTIONS. >> Mayor Guarjardo: COUNCILMAN SCOTT. >> Scott: I HAD TO CHUCKLE TO MYSELF BECAUSE I WAS WONDERING HOW OFTEN WE USE THIS EMERGENCY PROCUREMENT PROCESS, AND I WENT BACK, AND I GUESS WE USED IT FO THE MARY ROADS PIPELINE, WHEN YOU WENT FROM 50 TO 70, WAS THA DONE UNDER EMERGENCY? >> WE USED IT -- IF YOU REMEMBER, WE INSTALLED AIR RELIEF VALVES, VACUUM VALVES, INSTALLED 67 OF THEM UNDER EMERGENCY EVALUATION, AND THAT WAS DONE BECAUSE THE CONDITION ASSESSMENT SHOWED THAT WE NEEDED THOSE TO OPERATE THE PIPELINE IT SCHEDULED FOR. >> Scott: THE REASON I CHUCKLE IS WHEN I WAS LOOKING AT ALL OF THAT, I RAN ACROSS A MEMO THAT JEFF EDMONDS GAVE US ON JUNE 16 OF LAST YEAR TO AMEND THE CONTRACT WITH GASHER FOR EMERGENCY GROUND WATER ASSESSMENT TO INCLUDE CONCEPTUA DESIGN FOR BRACKISH GRAND WATER DESALINATION PLANT. SO, I MEAN, THIS WAS ON OUR AGENDA BACK IN JUNE OF LAST YEAR. AND I WOULDN'T NORMALLY HAVE RUN ACROSS THAT BECAUSE GOING BACK AND LOOKING AT PREVIOUS AGENDA ITEMS IS NOT MY FORTE. YEAH. I LEAVE IT TO SMART PEOPLE LIKE YOU. I FOLLOW YOUR LEAD. SO I WANT TO GO OVER A COUPLE THINGS BECAUSE THIS IS NEW TO ME. I DON'T KNOW AQUALIA, WE KNOW GASHER BECAUSE THAT'S WHO WE HIRED LAST SUMMER. SO THIS SAYS -- YOU'RE TELLING ME WE'LL SPEND 40-SOMETHING MILLION DOLLARS FOR THE DESALINATION AND $120 MILLION OF PRO PROCUREMENT FOR DESALINATION, AND $120 MILLION FOR THE PIPELINE. WHEN I COME BACK IN MY NEXT LIFE, I WANT TO BE A PIPELINE DEVELOPER, I MEAN THAT'S JUST AMA AMAZING. >> IT'S APPROXIMATELY 13 MILES BUT THAT $120 MILLION INCLUDES A PUMP STATION AT THE WESTERN WELL FIELD, AND IT INCL INCLUDES -- I TALKED ABOUT THE EVAPORATIVE PLANS AND THAT INCL INCLUDES -- >> Scott: OKAY. THE POTENTIAL INJECTION WELL. OKAY. THANK YOU. >> YES, SIR. >> Scott: SO TELL ME, THE REPUBLCONSTRUCTION OF THIS, W TRYING EVERYTHING WE CAN TO GET WATER NOW. SO I TOLD PEOPLE IF 26 LOOKS LIKE 25 ON THE RAIN, WE GO INTO LEVEL 1 EMERGENCY IN NOVEMBER. BUT IF THE WESTERN WELL FIELDS GET ITS BED AND BANKS PERMIT IN MAY -- I THINK THAT'S RIGHT. THEN IT MOVES THAT NOVEMBER OF 26 DATE TO NEXT MAY. SO NOW WE'RE LOOKING AT MAY OF 27. SO WE BOUGHT OURSELVES SOME TIME. SUDDEN NOTE, I THINK THIS YEAR'S RAIN SO FAR IS WORST THAN LAST, LET'S NOT GO THERE. BUT IF WE WERE TO BRING THIS PROJECT ON, WHAT WOULD IT DO TO THAT TIMELINE ON THE LEVEL 1 WATER EMERGENCY? DO WE HAVE A SENSE OF WHAT THAT WOULD DO? >> SO ONE THING -- AND I WANT TO GIVE YOU THAT ANSWER. >> Scott: IT'S ALL RIGHT. >> BUT THE CONCERNING THING FOREMOST ON MY MIND IS LAKE TEXANNA. SO L LAKE TEXANNA IN MY WATER SUPPLY UPDATE, BUT IF THEY CURTAIL US, THE NOVEMBER DATE WILL CERTAINLY MOVE UP. SO THIS IS ALL ABOUT B BUYING TIME, I'M -- I FIRMLY BELIEVE THAT WE NEED ALL OF THESE PROJECTS TO GET BY. THIS IS NOT ABOUT ADDITIONAL WATER. THIS IS ABOUT GETTING B BY. THERE'S ADDITIONAL CONCERN ABOUT THE WESTERN RESERVOIRS, AND WE DO HAVE OUR MODELER LOOKING INTO IT TO DETERMINE WHAT IS NEEDED FOR THOSE TO REFILL TO 30% -- 20%, 40%, AND I IT -- IT'S -- THAT'S GOING TO BE A TALL TASK FOR THAT TO HAPPEN. >> Scott: YEAH. SO IN THIS MEMO, DOES IT TELL US WHEN WATER COMES ONLINE AND HOW MUCH COMES ON WHEN? >> YEAH. SO IN -- >> Scott: I STOPPED LISTENING. >> SO IF I COULD BRING UP THE PRESENTATION AGAIN, THERE IS A DELIVERY DATE SCOTT SCOTT DID YOU JUST GIVE IT? >> IT WAS REALLY ON IN THE SLIDES. >> Scott: THAT WAS A LONG TIME AGO. >> THERE IT IS. SO IN 11 MONTHS IN EXECUTION OF THE CONTRACT, WE'LL HAVE 3.91MGD, 9.2 IN 14 MONTHS OF EXECUTION OF CONTRACT. NOW, ONE THING THAT I CAN SAY IS ANOTHER OPTION THAT WE'RE INVESTIGATING IS IF WE HAVE THE CONVEYANCE LINE DONE, WE WOULD ABSOLUTELY RATHER -- WE WOULD LIKE TO PUMP THE GROUND WATER THROUGH THE CONVEYANCE LINE THEN WE WOULD BLEND THE WATER AT THE PRESAT BASIN. >> Scott: SAY THAT AGAIN, I'M SORRY. >> SO ONCE THE CONVEYANCE LINE IS DONE TO OWENS STEVENS, AND SAY WE CAN DELIVER 24MGD TO OWENS STEVENS BUT WE ONLY HAVE TREATMENT CAPACITY OF 3 TOWN 91 91MGD, WHAT WE DO IS PUT THE REST IN THE PRESET BASIN, BLEND IT WITH OUR OTHER SOURCES, AND IT HELPS US ELIMINATE THOSE LOSSES ALONG THE RIVER, HELPS US USE THE RAW WATER. >> Scott: WHAT DO YOU CALL THAT. >> THEY CALL IT CARRIAGE LOSSES OR CARRYING LO LOSSES IT'S REFERRED TO SOMETIMES. SCOTT SCOTT OKAY. ALL RIGHT. AND IT DOES BEG THE QUESTION THOUGH. I GUESS, WHY ARE WE D DESALLING IT IF WE CAN PUT IT IN THE WHATEVER BASIN AND BLEND IT? BECAUSE THERE'S A LIMIT TO THAT, I GUESS, IS THAT THE ISSUE? >> WELL THERE'S -- WHAT WE'RE TRYING TO DO -- LET ME BACK UP A LITTLE BIT. SO THERE IS TCQ, SECOND DARE CONTAMINATE LIMIT OF TDS AT ONE THOUSAND PARTS PER MILLION. CURRENTLY, WE ARE BL BLENDING, BUT IF YOU -- IF WE HAVE TO START PULLING BACK FROM OUR EASTERN SOURCES WITH LAKE TEXANNA OR, KNOCK ON WOOD, EVEN IF THE COLORADO RIVER LCRA MAKES US CURTAIL IN THE SUMMER, THE AMOUNT OF BLEND CHANGES. SO A LOT OF THIS HAS TO DO WITH PROVIDING SUPERIOR RATED WATER QUALITY FOR ALL OF OUR CUSTOMERS SCOT. >> Scott: GOT IT. MAKES SENSE. I UNDERSTAND OUR CON CONCERNS AND UNDERSTAND OUR NEED TO PROVIDE AS MUCH WATER AS WE CAN AS SOON AS WE CAN. AND WHAT'S UNIQUE ABOUT THIS IS IF THIS -- ALL THINGS THAT YOU SAID COME TRUE, WE CAN CREATE THIS WATER, WHAT, 21. 21.3MGD FOR 56 CENTS PER $1ONE THOUSAND GALLONS. >> YEAH. >> Scott: THAT'S THE DIFFERENCE IN THE RATE. >> THAT'S CORRECT, THE DIFFERENCE IN THE RAW WATER RATE. >> Scott: DIFFERENCE IN THE RAW WATER RATE. AND THERE'LL BE ADDITIONAL COST WHEN WE PUT IT THROUGH OWENS STEVENS? >> SO THE TREATED WATER WILL BE CHLORINATED AND TESTED, BUT THEN GO INTO OUR NEW CLEAR WELL THREE AND THEN PUMPED THROUGHOUT THE DISTRIBUTION SYSTEM. >> Scott: YOU'RE JUST BEING MEA NOW USING BIG WORDS. BUT WHEN IT COMES TO OUR CONCERN THAT SOME OF OUR BIG WATER CUSTOMERS WILL GO DO YOUR OWN THING, GOOD LUCK DOING YOUR OWN THING FOR 56 CENTS PER ONE THOUSAND GALLONS. I MEAN, I DON'T KNOW THAT THERE'S A LESS EXPENSIVE ALTERNATIVE ON OUR TO DO LIST. >> THIS IS THE LEAST EXPENSIVE WATER SUPPLY PROJECT THAT WE HAVE, OUTSIDE OF OUR GROUND WATER WELLS PUMPING INTO THE RIVER WITHOUT TREATMENT. >> Scott: SURE. SURE. WELL I KNOW THE CONC CONCERNS. I UNDERSTAND THE CON CONCERNS. I APPRECIATE THE CON CONCERNS. I'M GOING TO SUPPORT IT JUST BECAUSE I THINK IT'S A WAY TO GET WATER HERE FAST AND A REL RELATIVELY INEXPENSIVE PROPOSAL. I DO APPRECIATE THE GRANT OPPORTUNITY. I THINK WE SHOULD REALLY -- AND FRIENDS UP NORTH LOVE US IN AUSTIN, THIS WOULD BE A GOOD WAY TO SHOW THE LOVE. WHAT'D YOU SAY? A $25 MILLION GRANT. >> THE INITIAL ROLLOUT WAS $25 MILLION AS PART OF THAT INITIAL HOUSE BILL FOR CITIES OUR SI SIZE. >> Scott: TAKE IT FOR LATE VALENTINE'S OR EASTER. I CAN WAIT. THANK YOU MAYOR. >> Mayor Guarjardo: YES. COUNCILMEMBER HERNANDEZ. >> Hernandez: ALL RIGHT. THANK YOU, MAYOR. WITH GARVER, I DON'T REMEMBER THEM EVER TALKING ABOUT PIPELINE, BUT IS THIS AN EXTENSION ON TO THE -- BECAUSE THEY ORIGINALLY CAME IN TO DO AN EVALUATION OF OUR WASTE WATER; RIGHT. >> SO THAT WAS A SEPARATE CAPITAL PRO PROJECT. THEY WERE LOOKING AT EFFLUENT REUSE AND DIFFERENT OPTIONS FOR EFFLUENT REUSE AND DIRECT POTABLE REUSE. THAT'S A SEPARATE CONTRACT. >> Hernandez: I'M ASSUMING NOTHING CAME OF THAT BECAUSE WE DECIDED TO GO IN A DIFFERENT DIRECTION. >> WELL WE GOT QUITE A BIT OF INFORMATION FROM THEM. THEY'VE DONE A GOOD JOB. WHAT THIS COUNCIL DECIDED IS IN TERMS OF TIME AND PRIORITY, IS TO MOVE FORWARD WITH THE CONTRACT WITH ARDURA TO DESIGN THE CONVEYANCE PIPELINE FROM OWE SEW WASTE WATER TO GREEN WOOD. AND THEN SIMULTANEOUSLY, CCW HAS BEEN NEGOTIATING THE CONTRACTS WITH VIA LAIR ROW TO MAKE ALL OF THAT WORK. >> Hernandez: OKAY. SO YOU RECEIVED A REPORT ON THAT? >> UH-HUH. YES SIR. >> Hernandez: ALL RIGHT. OKAY. AND THEN THIS ONE, WHICH COUNCILMAN SCOTT TALKED ABOUT, WAS LOOKING INTO A POSSIBLE BRACKISH WATER DESAL PLANT WITH REGARDS TO THE EASTERN WELL FIELDS; RIGHT. >> IT WAS -- NO. IT WAS IN REGARDS TO GROUND WATER. >> Hernandez: TO GROUND WATER, BUT NOTHING ON CONVEYANCE, THAT WAS AN EXTENSION OF THAT PARTICULAR CONTRACT. >> I WOULDN'T CALL IT AN EXTENSION, I WOULD SAY IT'S PART OF THE PRO PROCESS. SO IT'S PART OF THAT EMERGENCY MEMO, WE ENGAGED THEM TO HELP US BETTER UNDERSTAND THE ALIGNMENT. AS THE CITY MANAGER S SAID, THEY DID DIFFERENT SCENARIOS WITH DIFFERENT ALIGNMENTS. >> Hernandez: OKAY. SO YOU'RE -- YOU WERE UNDER THE ASSUMPTION WE UNDERSTOOD THAT IT MEANT EVERYTHING ASSOCIATED WITH THAT, INCLUDING THE DESIGN OF A CONVEYANCE LINE FOR $12 MILLION. >> I KNOW WHAT WE TALKED ABOUT PREVIOUSLY, YES, SIR. >> Hernandez: I DON'T UNDERSTAN THAT ANSWER. >> IN VARIOUS EXECUTIVE SESSIONS, THIS PROJECT WAS DISCUSSED MULTIPLE TIMES. >> Hernandez: DO YOU RECALL T THAT? OKAY. SO LIKE I SAID, I NEVER TIED GARVER TO THIS PARTICULAR THING, AND I'M NOT TRYING TO BEAT UP ON GERBER, I JUST DON'T THINK THE INFORMATION WAS CONVEYED TO US AS TO ALL OF THIS WOULD HAPPEN. NOW, THE REASON I BRING THIS UP IS YOU'RE ASKING US -- AND I UNDERSTAND THE EMERGENCY IN THE WHOLE ISSUE, SO WE'RE SPENDING A TOTAL OF $125 MILLION WITH REALLY NO PROCUREMENT PROCESS OTHER THAN -- AND IT'S A LARGE AMOUNT OF MONEY, WHICH MAKES IT U UNCOMFORTABLE WHEN YOU HAVE TO FACE PEOPLE AND SAY, WELL WHY DIDN'T YOU BID THIS? WHY DIDN'T YOU ASK US? YOU KNOW, WE HAVE OTHER COMPANIES HERE THAT, YOU KNOW, COULD DO SOMETHING SIMILAR, WE JUST NEVER HEARD ANYTHING. >> I -- THE COST OF P PROCURING THIS, IT IS POSSIBLE THAT YOU COULD SAVE SOME MONEY, BUT WHEN WE DO EMERGENCY CONSTRUCTION, A LOT OF TIMES WE DON'T HAVE THE LUXURY OF TIME. IF SOMETHING HAS COLLAPSED, SOMETHING HAPPENS, WE USUALLY USE TIME MATERIAL CONTRACTS WITH CONTRACTORS, THE PROCUREMENT PROCESS, YOU'VE GOT TO PRODUCE ENTIRE BID DOCUMENTS. >> Hernandez: OKAY. I UNDERSTAND, JEFF, LET ME STOP YOU THERE BECAUSE IN THE PAST, LIKE, FOR EXAMPLE, IF A LIFT STATION PUMP GOES DOWN AND WE HAVE SOME -- YOU KNOW, WE'LL GET A MEMO FROM PETER SAYING HE'S MADE AN EXECUTIVE DECISION, HE'S GOING TO ORDER THE PUMP AND HIRE, YOU KNOW, XYZ CONTRACTOR TO GO INSTALL IT, AND MOVE TOWARDS AND WE GET NOTIFIED AFTER THE FACT. OKAY. I UNDERSTAND THE EMERGENCY PROCESS. OKAY. BUT IT'S VERY DIFFERENT WHEN WE'VE HAD MONTHS OF DISCUSSION ON SOMETHING, AND WE ARE SPENDING, YOU KNOW, MULTIMILLIONS OF DOLLARS -- YOU KNOW, HUNDREDS OF MILLIONS OF DOLLARS NOT ONE OR -- YOU KNOW, 100,000 OR FIVE HUNDRED THOUSAND FOR AN EMERGENCY PUMP REPLACEMENT. AND THEN INCLUDING THE VALVES THAT ARE ALL ALONG THE MARY RHODES PIPELINE, THAT WAS A COMPLETELY -- I WANT TO SAY IT'S A COMPLETELY SEPARATE ITEM THAN WHAT WE'RE TALKING ABOUT HE HERE. I MEAN WE -- WHEN DID YOU FIRST MEET WITH AQUALIA? >> SO ONE THING I WOULD LIKE TO SAY IS THIS I ITEM, THE PROCESS IS IDENTICAL TO EVANG EVANGELINE; RIGHT? WHERE WE'RE BRINGING ITEMS TO COUNCIL FOR APPROVAL. >> Hernandez: OKAY. >> SO -- >> Hernandez: YOU DON'T DO AN EMERGENCY THING ON PROPE PROPERTY; RIGHT? BECAUSE OBVIOUSLY YOU DON'T BID OUT PROPERTY STUFF THAT WE'RE PURCHASING. >> I'M REFERRING TO THE CONTRACTS WITH PAPE DAWSON. >> Hernandez: AND PAPE DAWSON WAS DOING THIS WORK ALREADY FOR EVANGELINE AND WE HAD HDR YOU SHOULD CONTRACT FOR THE MARY RHODES PIN PIPELINE. SO IT WAS AN EXTENSION OF THE EXISTING CONTRACT THEY HAD; RIGHT. >> WELL IT WAS A NEW CONTRACT WITH THE CITY BECAUSE PREVIOUSLY THEY WERE WORKING FOR THE SELLER. >> Hernandez: I UNDERSTAND TH THAT; RIGHT? BUT THEY WERE -- IT'S CONTINUITY; RIGHT? BUT AQUALIA -- AND I'M -- THIS IS KIND OF TYING INTO BOTH OF TH THESE, AQUALIA -- WHEN DID YOU FIRST GET INTRODUCED TO AQUALIA? WHEN DID YOU START TALKING TO THEM? >> SO THEY CAME IN, GAVE US -- JUST LIKE WE TALK TO MANY DIFFERENT VE VENDORS, THEY CAME IN AND GAVE US A PRESENTATION, I BELIEVE IT WAS IN THE DECEMBER TIME FRAME. >> Hernandez: IN DECEMBER. >> IN THE FIRST -- THAT'S WHEN WE GOT TO KNOW THEM, BUT THIS PROJECT WASN'T THERE YET OF COURSE, WE LEARNED TO UNDERSTAND THEIR CAPABILITIES. >> Hernandez: OKAY. I UNDERSTAND THAT. SO IN THE -- IN THE MONTH PERIODS, DECEMBER, JANUARY, NOW WE'RE IN THE MIDDLE OF FEBRUARY, THERE WAS NO THOUGHT TO SAY, YOU KNOW, HEY THIS IS A GREAT IDEA, LET'S SEE WHAT OTHER OPPORTUNITIES ARE THERE FOR THIS PARTICULAR TYPE OF SCENARIO. WAS THERE ANYBODY ELSE CONTACTED? DID YOU -- I MEAN, BECAUSE YOU KNOW WHEN YOU DO SOLE SOURCE, IT'S GENERALLY SOMETHING THAT HAS NO OTHER OPTION TO BUY FROM. SO GIVE ME YOUR THOUGHT PROCESS ON THIS, ON HOW YOU MADE THE DECISION TO GO FORWARD, YOU KNOW, BECAUSE IT'S A SIGNIFICANT AMOUNT OF MONEY WITHOUT A PRO PROCUREMENT PROCESS. >> YEAH. I UNDERSTAND YOUR QUESTION. THE -- THE BENEFITS THAT AQUALIA OFFERED WAS A BUSINESS PROPOSAL THAT OTHER VENDORS DO NOT PROVIDE. ONE IS THE MODULAR UN UNITS, AND TWO IS WHERE THE CITY CAN OWN THEM OUTRIGHT, AND THEN TWO IS THE OPERATIONS AGREEMENT THAT'S NOT A 30-YEAR COMMITMENT. IT'S A FIVE-YEAR AGREEMENT WHERE WE CAN MAKE A DECISION AT THAT TIME. >> Hernandez: AND YOU NEVER -- WELL, THE REASON I SAY THAT IS BECAUSE OBVIOUSLY THEY PROVIDED SOME INFORMATION ASSOCIATED WIT THAT, BUT YOU NEVER ASKED WHETHER ANYBODY ELSE WOULD AGRE TO THAT AND WHAT PRICE IT WOULD BE. >> REPHRASE THAT AGAIN. I NEVER ASKED IF ANYBODY ELSE WOULD AGREE TO IT? >> Hernandez: SINCE WE DIDN'T G THROUGH PROCUREMENT, I MEAN JUS A LITTLE DUE DILIGENCE, PRICE COMPARISON, THIS IS THE COST, THESE ARE OPTIONS, CAN YOU DO THIS. >> YEAH. ABSOLUTELY. AND OBVIOUSLY WE TAKE THE RATE IMPACTS VERY SERIOUSLY. WHAT WE DID IS I REQUESTED GARVER TO LOOK AT THEIR PRICING TO ENSURE THAT IT WAS APPROPRIATE. GARVER DID THAT, AND THEY REVIEWED IT AGAINST VARIOUS COMPETITORS PROPOSAL AND FOUND IT TO BE VERY COMPETITIVE. >> Hernandez: OKAY. YOU -- I MEAN. BUT I'M ASKING IF YOU DID THAT. DID YOU ASK OTHER -- I MEAN, WHAT OTHER COM COMPANIES WERE ENGAGED? >> SO I -- RIGHT. MY CONVERSATIONS WERE WITH AQUALIA BECAUSE I KNEW THAT THEY COULD PROVIDE THE SOLUTIONS NEEDED. I DON'T WANT TO COMMENT ON OTHER -- >> Hernandez: SO YOU'RE SAYING GARVER DID THE REVIEW FOR YOU AND CONTACTED OTHER COMPANIES. >> THEY DID THE PRICE ANALYSIS YES. >> Hernandez: THEY DID A PRICE ANALYSIS. AND I APPRECIATE HOW YOU WORD THINGS. THEY DID A PRICE ANALYSIS, BUT NOT A PRICE COMPARISON. >> IT IS A PRICE ANALYSIS TO ENSURE THAT THE AQUALIA PROPOSAL WAS COMPETITIVE SO THAT I CAN COME IN FRONT OF COUNCIL TODAY TO ENSURE YOU THAT IT WAS A GOOD PRICE. >> Hernandez: OKAY. YOU DIDN'T ANSWER MY QUESTION BUT THE. >> I THINK I DID. >> Hernandez: NO. I ASKED FOR PRICE COMPARISON NOT ANALYSIS. THERE'S DIFFERENT THINGS WHEN YOU'RE COMPARING PRICES VERSUS MAKING AN ASSESSMENT ON THE PRICE. >> WELL WHEN YOU LOOK AT THE PROCUREMENT PROCESS, THIS IS BUILT FOR SPE SPEED; RIGHT? >> Hernandez: I'M NOT COMP COMPLAINING ABOUT THE COST. AND I'LL ASK -- I'LL WAIT FOR THE NEXT ONE. >> Mayor Guarjardo: ALL RIGHT. COUNCILWOMAN CAMP POS. CAMP CAMP I DON'T KNOW IF I CAN FOLLOW UP WITH THAT. OKAY. SO ON THE PRICING, THE PAGE 17, WHEN WE'RE TALKING ABOUT THE BRACKISH RO. SO DOES A WATER RATE IMPACT INCLUDE THE COST OF THE PIPELINE? OR IS IT JUST FOR THE BRACKISH RO PLANT? >> IT IS FOR -- AND I'M GOING TO PULL UP 17. I'M SORRY, COUNCILWOMAN. SO IT IS FOR THE FULL PROJECT. SO IT INCLUDES THE $28 MILLION THAT WAS APPROVED LAST WEEK. IT INCLUDES THE AQUALIA PRICE AT $43 MILLION. IT INCLUDES THE CONVEYANCE LINE PUMP CATION, ALL OF THAT ADDS UP TO 23.2 MILLION. SO WE WANTED TO SHOW YOU THE RATE IMPACT WITH ALL COSTS INCLUDED. >> Campos: WHERE DID YOU COME U WITH THE $23 MILLION? >> YEAH. HE MISSPOKE, IT'S 203-POINT IT MILLION. >> Campos: OKAY. 203. OKAY. >> Zanoni: IT ALSO INCLUDES THE APPROPRIATING COSTS AS WELL. >> THAT'S CORRECT. THAT'S IN THE RATE IMPACT AS WELL. >> Zanoni: THAT'S FULLY LOADED. >> Campos: OKAY. BACK TO COUNCILMEMBER HERNANDEZ'S QUESTION. OKAY. LET'S SEE IF WE CAN -- HE WAS ASKING ABOUT NOT THE ANALYSIS, BUT DID YOU COMPARE IT WITH OTHER COMPANIES? YES, ANALYSIS IS DIFFERENT FROM COMPARISON. DID YOU -- WERE YOU ABLE TO DO THAT? DID YOU DO THAT? >> RIGHT. SO BECAUSE OF THE TIME FRAME OF THIS, WE GOT THE QUOTE FROM AQUALIA, AND THEN WE DID A PRICE CHECK FOR LACK OF A BETTER WORD. >> Campos: SO NO; RIGHT. NO. >> Zanoni: NO IS THE ANSWER, WITH THE EXCEPTION OF ANOTHER COMPANY UNSOLICITED GAVE US A PROPOSAL FOR A SIMILAR ON A FLOATING BARGE, AND WE RECEIVED THAT MANY MONTHS AGO, BUT THEY DIDN'T HAVE THE BREADTH OF EXPERIENCE THAT AQUALIA HAD. BUT TO THE QUESTION FOR YOU AND HERNANDEZ -- HE STEPPED OUT, BUT WE DID NOT DO A COMPARISON OF THIS COMPANY CAN DO IT FOR THIS PRICE THIS COMPANY B AND C. WE DIDN'T DO THAT. DID A UM CAM OKAY. AND THAT WOULD HAVE BEEN NICE FOR NICK. >> Zanoni: WE WOULDN'T BE HERE TODAY. WE WOULD BE HERE THREE MONTHS FROM NOW. DID A UM CAM YEAH. AND I UNDERSTAND THE URGENCY. I SUPPORTED THE PROJECT LAST WEEK, AND I'M GOING TO BE SUPPORTING IT. WE -- YOU KNOW, WE NEED WATER. I MEAN THERE'S JUST -- THERE'S NO OTHER WAY TO SAY IT. I MEAN, AS MUCH AS I WOULD LOVE TO CURTAIL BIG INDUSTRY, I KNOW THAT IT WOULD ALSO CURTAIL EVERYBODY ELSE. SO, I MEAN, AS MUCH -- EVEN THOUGH THEY TAKE 70% OF OUR WATER, WE'RE STILL IN THE SAME POND. SO WE HAVE TO LOOK OUT FOR EACH OTHER. SO I HOPE THEY'RE LISTENING. >> COUNCILWOMAN VAUGHN. >> Vaughn: I'M TIRED. I DON'T KNOW IF I'LL MAKE ANY SENSE. I STAYED UP WAY TOO LA LATE. WE KNOW THAT REVERSE OSMOSIS DOES NOT MACON DOMINANTS DISAPPEAR, IT SEPARATES THEM. 50% OF EVERY GALLON PU PUMPED IS CONCENTRATED WASTE; CORRECT. >> THAT'S THE EFFLUENT DISCHARGE. YOU'RE CRI CORRECT. >> Vaughn: OKAY. SO YOU'RE TALKING ABOUT PUTTING THE CONCENTRATE, INJECTING IT UNDER UNDERGROUND; CORRECT. >> SO COUNCILWOMAN, YOU ARE CORRECT. LET ME JUST CLARIFY. THERE ARE PREFILTERS, AND I SHOWED THAT. THAT IS THE PRESSURE ZEOLITE FILTERS THAT R REMOVES THE IRON, THE MANGANESE, THE URANIUM. THOSE ARE TAKEN OUT IN THE PREFILTERS OR THE PRESSURE FILTERS, THAT'S ABSORBED TO THE MEDIA, AND THE MEDIA IS REMOVED OVER A CERTAIN LIFE S SPAN, AND THEN THAT'S TAKEN TO A LANDFILL. THE REMAINING STUFF, YOU'RE RIGHT, IT WOULD GO INTO AN EJECTION WELL OR E VANTIVE POND. >> Vaughn: AND HOW MANY MILLION OF GALLONS A DAY DO YOU THINK THAT'LL BE? BECAUSE YOU'RE GOING TO GET WHAT? SAY YOU GET 24MGD. >> IT'S 24 MINUS 21.3. SO IT IS 2.7 MI 2.7 MILLION GALLONS A DAY WHEN THE PLANT IS FULLY OPERATIONAL. ONE THING ABOUT THE PLANT IS BECAUSE THERE'S EIGHT DIFFERENT TRAINS, WE CAN RUN ONE TRAIN AT A TIME IF WE WANT, SO IT'S SCALABLE IN TERMS OF FLOW RATE. SO TO ANSWER YOUR QUESTION, IF IT'S R RUNNING, YOU KNOW, FULL AMOUNT, IT'S THAT -- IT'S THE 2.7. I'M SORRY. VAUGHN VAUGHN YOU'RE TIRED TOO. AREN'T YOU. >> YEAH. 2.7 MILLION GALLONS A DAY. >> Vaughn: THIS IS NO DIFFERENT THAN WHAT OIL BASINS DO. INJECT IT INTO THE GROUND, AND IT'S CAUSING PROBLEMS BY THEM DOING IT, THEY'VE HAD EARTHQUAKES UP THERE. IT'S A CONCERN, THEY'RE LOOKING TO FIND ANOTHER PLACE TO PUT THE WATER. WE THOUGHT ABOUT IT, TO ME, WE'RE RUSHING THROUGH IT, AND NICK, I GET IT, WE HAVE TO HAVE WATER BECAUSE OF FAILED COLSIES BEFORE, PREVIOUS COUNCILS DIDN'T GET THE WATER AND THEY'RE RUSHING, WE'RE PANICKING TO GET THE WATER. THAT PROJECT WITH EVWITH EVANGELINE WENT ON FOR MONTHS AND MONTHS AND MONTHS. AND WE HAD INFORMATION BEFORE. I WOULD LIKE TO HAVE STEVE YOUNG COME BEFORE US AND TALK TO US ABOUT THIS. BECAUSE I'M CONCERNED ABOUT IT. I DON'T KNOW WHAT YOU'RE ALL DO WITH THE D DISCHARGE, WILL YOU PUT IT IN THERE, IN THE NEARBY CREEKS? DO ANY OF THAT? >> NO. THE INITIAL THOUGHT IS TO START WITH THE E V VANTIVE POND. SSO OWENS STEVENS, NEXT TO WHAT WE CALL OUR POLLIWOG PONS, 48 ACRES OF CITY-OWNED PROPERTY. SO AS OUR PROJECT PUMPS UP, PART OF THAT IS A POND, YOU PUT THAT 2. 2.7MGD INTO A POND, AND OVER TIME, IT EVAP EVAPORATES. >> Vaughn: OKAY. YOU SAID YOU'D GET 3. 3.9MGD FOR TREATED WA WATER. >> TREATED WATER. >> Vaughn: IN THE MEANTIME, WHE YA'LL START PUMPING OUT THERE, IT WON'T BE TREATED, WHAT'S GOING TO HAPPEN? >> SO WE STILL HAVE THE PLAN FOR THE BEN AND BANKS PERMIT SUBMITTED TO TCQ, SO THAT WATER UNTIL THE CONVEYANCE LINE IS BUILT WILL BE GOING INTO THE RIVER AND CONVEYED BY THE RIVER THROUGH OWENS STEVENS. >> Vaughn: AND BLEND LIKE WE DI THE WATER TO ROBSTOWN. I'M JUST SAYING. ANYWAYS, YOU KNOW I'M REALLY CONCERNED ABOUT THIS BECAUSE OF THE FA FARMERS, THE RANCHERS, BECAUSE THAT'S ALL THEY HAVE, THAT'S ALL THEY HAVE FOR WATER. THEY HAVE NOTHING ELSE. WE MAY GET CURTAILED FOR WATER, BUT WE'LL STILL HAVE WATER, AND I DON'T THINK THAT WE DID ENOUGH MODELING FOR THIS, AND PROXIMITY TO THE DAM, CAN IT EFFECT THAT, AND WE'RE SAYING IT'S ONLY FOR EMERGENCY USE. NOW, I THINK IT'S CLEAR NOW THAT IT'S NOT. SO WE PROBABLY NEED TO QUIT USING EMERGENCY IN THE INTERMITTENT, IT'S PERMANENT OR ELSE WE WOULDN'T BE SPENDING MONEY. AND I'M FEARFUL WE'LL BANKRUPT THE CITY BY THE MONEY WE'RE GETTING. WHAT HAPPENS WHEN WE GET RAIN, AND WE'LL GET RA RAIN. WHO'S GOING TO PAY FOR THESE ALTERNATIVE SERVICES. WE'VE GOT EMERGENCY, D DESAL EVANGELINE. I THINK WE'LL DO -- NEED MORE DUE DILIGENCE. YOU WON'T GET THE WATER BY NOVEMBER OR WHAT YOU THINK YOU'RE SAYING. I THINK WE SHOULD HAVE DONE MORE DUE DILIGENCE OF WHAT COULD HAPPEN OUT THERE TO THOSE PEOPLE. THANKS. >> COUNCILMEMBER BARRIA. >> Barrera: THANK YOU MAYOR P PROTEMPERATURE. YOU KNOW, AND PART OF THE PRESENTATION YOU SAID PARTIAL FOR TWO YEARS AND THEN A FULL FIVE YEARS AFTER THAT, SO IS THE CONTRACT FOR SEVEN YEARS. >> YEAH. SO AS THE COMPLETION OF THE PLANT AND TREATMENT OF THE 24MGD IS APPROXIMATELY 2 YEARS. SO THERE'LL BE PARTIAL OPERATION OF THE PLANT AS IT RAMPS UP IN PHASES UNTIL IT'S FULLY OPERATIONAL, AND THEN THERE'S A FULL FIVE YEAR PERIOD AFTER THAT. SO THE TERM IS APPROXIMATELY 7 YEARS. >> Barrera: OKAY. THAT WAS ONE OF THE THINGS I WAS UNSURE ABOUT. HOW LONG IS IT -- WHAT'S THE ANTICIPATED TIMELINE TO CONSTRUCT THE CONVCONVEYANCE LINE? >> SO THE GOAL IS TO HAVE IT IN BY THE END OF THE CALENDAR YEAR, AND WE'VE GOT TO FINALIZE THE ALIGNMENT, AND THEN WE'VE GOT TO WORK WITH CONTRACTORS TO FIGURE OUT HOW QUICK THEY CAN GET IT DONE AND HOW MANY WE'RE GOING TO HIRE. SO ONCE I HAVE THOSE DETAILS, I CAN LOCK IT IN. SO THE QUESTION, DO YOU HIRE TWO LOCAL CONTRACTORS OR THREE TO COMPLETE THIS IN SEG SEGMENTS ALL WORKING SIMULTANEOUSLY. >> Barrera: BUT THE GOAL IS. >> BY THE END OF THE CALENDAR YEAR. >> Barrera: CALENDAR YEAR. >> YEAH. >> Barrera: OKAY. SO I KATEED -- AND I APOLOGIZE -- AND I SAID THAT IT'S A TEMPORARY SOLUTION. NOW SOME PEOPLE MAY NOT WANT TO HEAR THIS, BUT THE WAY WE MAKE IT TEMPORARY IS THAT WE APPROVE THE DESALINATION FACILITY SO THAT WE KNOW WE HAVE CERTAINTY AND WE CAN REDUCE THE PRESSURE ON THESE WELLS. SO ARE WE GOING TO BE REQUIRED -- IS THE CONVEYANCE LINE IS GOING TO HAVE TO RUN AT 24MGD THE WHOLE TIME? OR CAN WE BRING -- CAN WE REDUCE THE CAPACITY SO THAT WAY WE CAN REST ASSURED THAT WE'RE JUST DOING IT FOR THE POINT OF DIVERSIFICATION AND WE'RE NOT USING -- WE'RE JUST GOING TO USE 24MGD FOR TWO YEARS. >> SO YOU CAN OPERATE -- LIKE I WAS TALKING BEFORE, WE NEED TO -- THE TREATMENT EQUIPMENT, WE NEED TO -- WE NEED TO UTILIZE, YOU CAN'T JUST LET IT SIT STILL, BUT I CAN RUN ONE TRAIN AT A TIME PERIODICALLY, BUT TO ANSWER YOUR QUESTION, WE CAN PUMP LESS WATER DOWN THE CONVEYANCE LI LINE. I'VE STATED MULTIPLE TIMES THE GOAL OF DIVERSIFICATION SO THAT WE CAN MANAGE OUR SOU SOURCES AND USE THEM WHEN NEEDED, WHEN THE WESTERN RESERVOIRS RECOVER, THAT'S THE MOST COST EFFICIENT WATER. >> Barrera: EXACTLY. >> Zanoni: CAN I ADD A NUMBER T THAT. AND NICK AND AVA CAN CORRECT ME, BUT THE MINIMUM RUN THAT WE WOULD HAVE TO RUN ON THAT TO KEEP THE MEMBRANES IN GOOD SHAPE IS 3 MILLION GALLONS A DAY, SO RESOURCES GOOD TO MAINTAIN, IT'S 3 MILLION A DAY VERSUS 24. >> Barrera: AND THEN IF WE HAVE AN ABUNDANCE OF ANOTHER RESOURC SUCH AS SURFACE WATER, THAT'S MORE INEXPENSIVE WATER, SO THAT'S LESS OF A BURDEN ON THE RATE PAYER EVEN THOUGH WE'VE GO CAPITAL EXPENDITURES, WE'RE REDUCING OPERATIONS. >> Zanoni: RIGHT. >> Barrera: BUT ONCE AGAIN, IT' A LONG TERM EXPENSE OF 30 YEARS TO MAKE SURE WE HAVE WATER. >> Zanoni: CORRECT. >> Barrera: DECADES TO COME. >> DO WE HAVE A QUORUM. >> Barrera: YEAH. THERE'S FIVE HERE. I KNOW WHAT'S GOING TO HAPPEN. SOMEONE IN PUBLIC COMMENT SAID -- I HEARD IN ONE GOOD YEAR THAT THERE WOULD BE -- THAT THERE WAS EQUIPMENT THAT WAS AVAILABLE IMMEDIATELY. NOW, I'M NOT SAYING THAT WE VETTED -- I'M JUST SAYING THAT I KNOW WH WHEN -- IN THE LAST -- IN THE WHOLE SEVEN YEARS EVERYBODY HAS GOT A BETTER IDEA, AND IN THE LAST FOUR YEARS OR IN THE LAST THREE YEARS, WE'RE CHASING DOWN EVERY OPPORTUNITY, AND I THINK THAT'S WHEN WE ENDED UP HIRING GARVER BECAUSE STAFF WAS HAVING A ME MEETING WITH THESE PEOPLE, LOOKING AT ALL OF THIS, TAKING UP ALL OF THEIR TIME TO DO -- TO -- AND THEN REVIEWING ALL OF THOSE OPERATIONS. IN FACT, I THINK WE EVEN JOKED ABOUT WHEN THIS MEETING WAS SET UP IT WAS LIKE, OKAY, WE'VE GOT ANOTHER GROUP WE'VE GOT TO VISIT WITH, AND THEN I THINK THE WAY YOU CONVEYED IT TO ME THEY WANTED TO BUILD A DESALINATION FACILITY AND WHILE THEY WERE TE TELLING US ABOUT THE OTHER RESOURCES AND THEN ALL OF A SUDDEN THE LIGHTBULB WENT OFF. SO MY POINT IS ARE WE GOING TO HAVE -- BECAUSE THERE'S GOING TO BE OTHER PEOPLE THAT SAY BECAUSE WE DID IT THROUGH EMERGENCY ORDER, FAST AND SAFETY, I CAN RUN FASTER, JUMP HIGHER, FASTER STRONGER, ARE WE GOING TO UTILIZE GARVER TO BE ABLE TO VET SOME OF THOSE BECAUSE WHAT IF WE COME UP ON ANOTHER AQUALIA AND SAY WE CAN MANUFACTURE THOSE, CAN WE WORK IN CONJUNCTION WITH THEM -- I GUESS, WILL THERE BE SOME COMPONENT OF THAT TO HAVE FLEXIBILITY IN THE EVENT THAT SOMEONE DOES COME IN SIX MONTHS DOWN THE ROAD, YOU KNOW. AND SOMEBODY LIKE GARVER VETS IT THAT WAY WE'RE NOT WASTING VALUABLE TIME BUT STILL NOT TU TURNING IT AWAY. HAVE WE CONSIDERED THAT? >> WELL, THE CONTRACT IS A CONTRACT, SO IT WAS TELLING -- TELLING THE COMPANY THAT WE'RE GOING TO BUY THIS PRODUCT FROM YOU AT THIS AMOUNT,. >> Barrera: AND I'M OKAY WITH THAT. I'M OKAY WITH THAT. I JUST WANT TO MAKE SURE -- AND THE CONCERN OF ALL OF THESE, THIS IS A LOT OF MONEY, AND I DON'T KNOW IF I'M STILL BEING ACCUSED OF BEING A FEAR MONGERRER. I'VE BEEN ONE FOR OVER A YEAR, BUT I FELT LIKE WE WERE GOING TO BE AT THIS POINT, AND WHEN WE GET TO THE POINT WE'RE DESPERATE, THAT'S WHERE PROCUREMENT GOES OUT THE WINDOW. SO I SUPPORT THIS. I SUPPORT THIS. I JUST WANT TO BE ABLE TO BE PREPARED THAT IF THERE'S SOMETHING ELSE THAT COMES UP THAT WE'RE AT LEAST CONSCIENTIOUS ABOUT IT. >> Zanoni: WE'RE STILL LISTENIN TO SUGGESTIONS, COUNCILMAN. IF THAT'S YOUR SUGGESTION. IF SOMEBODY COMES TO US AND WANTS TO PRESENT A PROPOSAL. CITIZEN COMMENT. WE HAVE THEM HERE, WE'LL BE -- >> Barrera: YEAH. AND I KNOW, I HEARD SOMEBODY SAY HEY YOU NEED TO WRITE A CONTRACT WITH SOUTH TEXAS WATER AUTHORITY SO I CAN GET PRIVATE EQUITY FINA FINANCING. DUDE, THAT'S NOW HOW IT WORKS. WHEN I ASKED, HOW MUCH IS IT GOING TO COST. I DON'T KNOW UNTIL I GET MY PRIVATE EQUITY FINANCING. SO I'M WITH YOU, I'M ON YOUR SIDE. I WANT TO THE MAKE SURE WE LEAVE THAT OPTION OPEN. AND THANK YOU FOR COMING FORWARD WITH THIS TO HAVE SOME SOLUTION. I MEAN, WE THOUGHT -- WE WERE TOLD EVANGELINE WAS -- IT PROBLEM WITH THE PER PERMITS, AND WE WERE TOLD -- WHEN WAS THAT? SEPTEMBER? SOMETIME AGO LIKE THAT. >> AUGUST. YEAH. SOMETHING LIKE THAT. >> Barrera: AUGUST OR SEPTEMBER. WE WERE TOLD NO PROBLEM WITH THE PERMITS AND LOOK AT THE CHALLENGES WE'RE FACING RIGHT NOW. SO I APPRECIATE YOU G GUYS. I APPRECIATE THE DUE DILIGENCE. I KNOW YOU'RE WORKING AROUND THE CLOCK. WE TALKED SUNDAY AT LENGTH IN PARTICULAR ABOUT SOME OF THIS. SO THANK YOU VERY MUCH. >> COUNCILMEMBER HERNANDEZ. >> Hernandez: THANK YOU. OKAY. SO I WANTED TO EXPRESS IN THE LAST SEGMENT IS THAT, YOU KNOW, THE P PROCUREMENT IS VERY TROUBLESOME FOR ME BECAUSE WE'RE SPENDING A LOT OF MONEY WITHOUT GOING THROUGH A PROCESS, AND, YOU KNOW, IT -- I UNDERSTAND WE'RE UP AGAINST IT. WE NEED THE WATER, BUT IT'S STILL -- THESE KIND OF NUMBERS WITHOUT EVEN LOOKING AT OTHER, YOU KNOW, OPTIONS, IS TROUBLESOME. OKAY. THAT BEING SAID, I THINK THE COST IS PRETTY AWESOME WHEN YOU THINK ABOUT IT. YOU KNOW, AND THAT 394, THAT'S INCLUDING DISINFECTANT? FOR THE COST PER THOUSAND GALLONS. >> YES. IT IS ABSOLUTELY. >> Hernandez: SO THAT'S FINISHE TREATED WATER. >> THAT'S TREATED WAT WATER -- YES. >> Hernandez: SO YOU'RE -- I MEAN, THAT'S PROBABLY -- THAT'S ACTUALLY A VERY EXCELLENT COST WHEN YOU THINK ABOUT IT, PROBABLY THE BEST COST WE'VE SEEN BECAUSE WE'RE PAYING 3.26 PER THOUSAND GALLONS FOR TREATE WATER RIGHT NOW. SOMEWHERE IN THAT. >> WE WERE TALKING ABOUT IT EARLIER. 3.10 3.15. >> Hernandez: OKAY. SO THIS IS PRETTY DAMN CLASS, AND I CAN'T COMPLAIN ABOUT THAT, RELATIVELY COMPARED TO SOME OF THE OTHER PROJECTS WE'RE LOOKING AT, THIS IS PRETTY -- YOU KNOW, RELATIVELY, DID THIS IS A REALLY GOOD PRICE FOR WHAT WE'RE GETTING; RIGHT. AND I'M NOT COMPLAINING ABOUT THAT. I THINK IT -- THIS IS ACTUALLY -- YOU KNOW IT SHOWS THAT WE CAN DO THINGS THAT ARE MUCH L LOWER COST AND STILL MAKE IT WORK. AND YOU MENTIONED YOU WERE LOOKING AT THREE POSSIBLE CONTRACTORS TO BUILD IT OUT TO GET IT BUILT OUT AS QUICKLY AS POSSIBLE. >> SO THE INITIAL THOUGHT WAS THAT CCW CREWS COULD DO A PORTION OF THE LINE NEAR THE WESTERN WELL FIELD AND THEN THE QUESTION THAT I HAVE FOR THE TEAM IS DO WE HIRE TWO ADDITIONAL CONTRACTORS OR POSSIBLY THREE AND THAT'LL COME AFTER WE START MEETING WITH PIPELINE CONTR CONTRACTORS. >> Hernandez: OKAY. SO THAT WAS A QUESTION THAT I HAD. IS YOU HAVE -- YOU DON'T HAVE ANY CONTRACTORS LISTED UNDER THAT AMO AMOUNT. >> Zanoni: NO. AND WHAT THE THOUGHT -- MY CURRENT THOUGHT ON THAT IS DO THIS LIKE WE DO A TYPICAL EMERGENCY CONSTRUCTION WHERE WE LOOK AT WHO HAS TRACK RECORD DOING SIMILAR CONSTRUCTION, WHO HAS AVAILABILITY, AND WE DO TIME AND MATERIAL CONTRACTS. SO WE'LL DO OWNER FIRST MATERIAL, FIRST THING WE'VE GOT TO DO IS DECIDE ON THE SIZE MATERIAL PIPE, GET THOSE ORDERS IN, AND WE'VE GOT A LITTLE TIME. >> Hernandez: SO THESE ARE UTILITY GUYS LIKE REYTECH, MAX UNDERGROUND. >> YES. THOSE ARE THE GUYS. >> Hernandez: OKAY. SO THAT WAS A CONCERN I HAD BECAUSE THERE WAS NO -- YOU WAS NO LISTED CONTR CONTRACTOR. >> YEAH WE HAVEN'T QUITE GOTTEN THAT FAR YET. >> Hernandez: OKAY. SO LET US KNOW WHO THAT IS WHEN IT DOES COME ABOUT BECAUSE, YOU KNOW, I'M HARD PRESSED. FINANCIALLY, I LIKE THE COST. AND I AM CONCERNED ABOUT THE DISCHARGE. CAN YOU PUT 2 MIL 2 MILLION GALLONS A DAY INTO AN EVAPORATION PO POND? OR 3 MILLION? >> SO WE'RE LOOKING AT THAT. I DON'T HAVE ALL THE INFORMATION. WITH APPROVAL, GARVER WILL LOOK INTO THAT, AND THEN WE'VE GOT NEGOTIATIONS DISCUSSIONS WITH TCQ ABOUT PERMITTING, BUT WHAT I CAN TELL YOU IS THERE'S THE EXISTING PROPERTY THE CITY OWNS, IT'S 46 ACRES, A SUB SUBSTANTIAL AMOUNT OF PROPERTY THAT THEY ALREADY CLEARED. >> Hernandez: OKAY. SO THERE'S CONCERN. OKAY. WHAT DO YOU DO WITH THE DISCHARGE. I MEAN, IT'S NOT GOING TO BE TO THE POINT IT'S CLOSE TO SEA WATER, BUT IT'LL STILL BE SALTIER THAN REGULAR WATER. YOU KNOW WHAT WE HAD WHEN THEY TRIED TO D DISCHARGE INTO BATH AND BAY, SOME OF THAT D DISCHARGE, I WON'T CALL IT BRIAN BECAUSE IT'S NOT QUITE SALTIER THAN SEA WATER, BUT YOU WOULD THAT ISSUE IF YOU WERE TRYING TO GET IT INTO NUECES BAY OR RIGHT THERE WHERE THE DAM IS AT THE -- IN CALHOON . >> OH. THE SALTWATER BARRIER. >> Hernandez: RIGHT. I THINK IT MIGHT IMPROVE THAT SINCE YOU CAN GET WATER FLOW IN THAT AREA SINCE WE'RE NOT D DISCHARGING. BUT ALL OF THAT HAS TO BE PERMITTED. >> THAT'S CORRECT. >> Hernandez: AND YOU'LL HAVE CHALLENGES. AND THEN IF YOU DO AN INJECTION WELL, WHERE DOES THAT GO? HOW DEEP DOES IT HAVE TO BE? HOW MUCH CAPACITY DOES IT HAVE? SO YOU HAVE A WHOLE SLEW OF ISSUES YOU HAVE TO COME ACROSS. >> YEAH. THE INJECTION WELL WOULD BE AT EITHER OWENS STEVENS PROPER OR THE OTHER 46. >> Hernandez: OKAY. THAT'LL DEPEND ON THE HYDROGEN . >> THAT'S CORRECT. THOSE ARE PRELIMINARY SITES. >> Hernandez: AND STEVE YOUNG HASN'T DONE EVALUATION FOR THAT YET. >> SO GARVER HAS LOOKED INTO POTENTIAL LOCATIONS AND THEN WE'LL GET FURTHER INPUT ON THE HYDRO GEOLOGY SO THAT WE CAN BETTER DESIGN THAT INJECTION WELL TO PRESENT IT TO TCQ. >> Hernandez: OKAY. WHICH BRINGS ME BACK TO THE LETTER -- I APPRECIATE YOU SENDING IT TO US THIS MORNING FROM STEVE YOUNG WITH REGARDS TO HOW MUCH -- THE TOTAL REGARDS FOR THE 37 ACRES UP THERE CLOSE TO BLUNCER, AND FOR REFERENCE, HE INDICATES A PROVISIONAL RESULT KATES THAT A MAXIMUM SUSTAINABLE RATE OVER A POE YEAR PERIOD WOULD BE 26 MI 26 MILLION GALLONS A D DAY. WHAT WE WERE ORIGINALLY TALKING ABOUT WAS 17 MILLION GALLONS A DAY FROM THE WESTERN WELL FIELD, AND THEN 15 -- AND THEN IT WAS 24 MILLION FROM EDWARD SHELL AND THEN GOT REDUCED TO 15. SO TOTAL 26 MIL 26 MILLION; RIGHT? SO YOU'RE GOING TO PUT 24 MILLION IN THE PI PIPELINE, AND YOU SAID THE REMAINDER, WHICH I'M ASSUMING IS NOW 2 MILLION GALLONS A DAY IS GOING TO GO TO THE RIVER. >> SO A COUPLE OF THINGS -- AND YOU BROUGHT THIS UP. BECAUSE I APPRECIATE STEVE WORKING FAST TO HONOR YOUR REQUEST, WORKED OVER THE WEEKEND TO GET THIS TO US, SO WE'RE APPRECIATIVE OF STEVE YOUNG AND HIS WO WORK. THE PROVISIONAL RESULTS KATEED THAT PUMPING THOSE WELLS 24/7 FOR 30 YEARS CONTINUOUSLY, IS 26 GALLONS A DAY WITHOUT AFFECTING THE LOCAL AND RESIDENTIAL LIVESTOCK WELLS. UNDER ANY SCENARIO, I CAN'T IMAGINE PUMPING THAT GROUND WATER CONTINUOUSLY FOR 30 YEARS, OPERATIONALLY IT WOULD BE INSURMOUNTABLE, OPERATIONALLY ALONE, SET ASIDE OUR PLAN TO UTILIZE WATER SUPPLY AND UTILIZE SOURCES BEST FOR RATE PAYER. >> Hernandez: OKAY. THE REASON I ASK FOR THIS IS BECAUSE WE HAVE A LOT OF ISSUES -- WE HAVE CONCERNED CITIZENS THAT WE'LL AFFECT THEIR PROPERTIES AND WELLS AND THAT KIND OF STUFF, SO I WANT TO MAKE SURE WE HAVE SOMETHING IN WRITING FROM STEVE YOUNG SO WE CAN PROVIDE OR ABIDE BY TO SAY WE'RE NOT GOING TO AFFECT TH THEM. NOW IT'S NOT -- HE CAN'T PREDICT THE FUTURE, SO WE STILL HAVE TO MONITOR EVERY -- YOU KNOW, ALL THE WELLS OVER TIME, BUT WE STILL NEEDED SOMETHING THAT WE COULD STAND ON. SO I APPRECIATE YOU G GETTING THIS LETTER. AND THANK YOU. >> Mayor Guarjardo: COUNCILMAN CANTU. >> Cantu: I'LL REPEAT WHAT I SAID EARLIER. I'M CONCERNED ABOUT SPENDING ALL OF THIS MONEY AND NOT GOING THROUGH A BETTER PRO PROCESS. I JUST FEEL LIKE WE'RE SPENDING WAY TOO MUCH MONEY BECAUSE WE'RE IN PANIC MODE. WE'RE IN PANIC MODE. AND I THINK PETER NEED NEEDS TO DECLARE EMERGENCY SO THE STATE AND FEDERAL GOVERNMENT CAN HELP US RIGHT NOW BECAUSE IF WE'RE IN THIS MUCH TROUBLE, DO A PRESS RELEASE AND DO AN EMERGENCY AND DO WHATEVER THE MAYOR NEEDS TO DO OR COUNTY NEEDS TO DO TO GET THE STATE TO COME IN AND THE FEDERAL GOVERNMENT TO GIVE US MONEY. I MEAN THIS IS -- THIS IS JUST CRAZY HOW WE'RE GOING TO SPEND ALL OF THIS MONEY ON THESE PROJECTS AND NOT EVEN GETTING THE BID ON IT, BUT THAT'S IT. THANK YOU. >> Mayor Guarjardo: PETER, COUL YOU ELABORATE ON THAT? YOU'VE DONE THIS BEFORE. >> Zanoni: SO THE -- THIS -- TH STATE LAW RIGHT NOW ENABLES A CITY TO DECLARE AN EMERGENCY ON THAT 180th DAY MARK, AND SO THAT'S THE PLAN FOR NOVEMBER IF WE NEED TO, WE HOPE WE DON'T HAVE TO DO THAT. SO USUALLY THIS -- IT'S 6 MONTHS BEFORE YOUR SUPPLY WON'T RENEW. I WILL SAY, THOUGH, THAT WE'RE LOOKING AT OPTIONS TO SEE IF EMERGENCIES CAN BE DECLARED SOONER FOR THAT PURPOSE OF WHAT THE COUNCILMAN SAID FOR EITHER FUNDING OR EXPEDITED REVIEW AND APPROVAL OF PERMITS AND THOSE TYPES OF THINGS. BUT I -- I MEAN, WE -- I THOUGHT OF THIS THE OTHER DAY AND I'LL SHARE IT HERE NOW THAT THE FEDERAL GOVERNMENT KNOWS WE NEED MONEY AND THE STATE KNOWS WE NEED MONEY BUT GUESS WHAT, NO ONE IS WRITING OUT ANY CHECKS. SO IF THEY WANTED TO, THEY WOULD HAVE WRITTEN THEM OUT BY NOW. BUT WE NEED TO KEEP THE PRESSURE ON. I KNOW WE WENT TO D.C. RIGHT NOW TO ASK FOR FUNDS FOR THE TWO DESALINATION PLANTS AND WE CONTINUE TO TALK ABOUT DELEGATION, IT IS WITHOUT ANY DOUBT THAT FEDERAL AND STATE ASSISTANCE IS NEEDED FOR THIS CITY. WE CAN'T -- THE RATE P PAYER CAN'T AFFORD ALL OF THIS, AND OUR INDUSTRY HERE SUPPORTS THE NATION AND THE INTERNATIONAL COMMUNITY WITH PETRO CHEMICAL FIELDS AND THAT TYPE OF THING, BUT DECLARING EMERGENCY DOESN'T GUARANTEE MONEY, IT GUARANTEES EXPEDITED PROCESS. >> Mayor Guarjardo: WHAT I'M REFERRING TO AND THE COUNCILMAN IS THE PROCESS BEING USED NOW O EMERGENCY. >> Zanoni: RIGHT. SO WHEN WE DECLARE AN EMERGENCY -- ACTUALLY THE GOVERNOR DECLARED AN EMERGENCY THAT WE'RE IN A DISASTER ZONE BECAUSE OF THE DROUGHT. THAT ENABLES US TO DECLARE EMERGENCY AND BYPASS BIDDING REQUIREMENTS AND THAT'S WHAT WE'VE DONE HERE. >> Mayor Guarjardo: OTHERWISE - PARDON ME. I'M SORRY TO INTERRUPT YOU. BUT OTHERWISE THE PROCESS WOULD MEAN WHAT IN TERMS OF TIME? >> Zanoni: IT WOULD -- JEFF EDMONDS IS BEST TO ANSWER, BUT IT'S 3 TO OF MONTHS. IF WE TRIED TO PROCURE A FIRM THROUGH THE BIDDING PROCESS DOCUMENTS. 30 DAYS. REVIEW THE BID, DOUBLE-CHECK REFERENCES, PRICE COMPARE, AGENDA ITEMS, SO TALKING OF MONTHS. >> EASILY, FROM THAT POINT, YOU'RE EASILY 4 OR 5 MONTHS. >> Zanoni: OKAY. >> BUT THERE'S ALSO PROBABLY 4 OR 5 MONTHS BEFORE THAT POINT BECAUSE YOU NEED TO DEVELOP FULL BID DOCUMENTS. >> Zanoni: SO 10 MONTHS YOU'RE SAYING. >> 10 TO 12 MONTHS. >> Zanoni: OKAY. SO 10 TO 12 MONTHS TO PREPARE SOMETHING. SO THAT'S WHY WE'RE USING THE EMERGENCY -- AND WE UNDERSTAND IT DOESN'T GIVE COMPE COMPETITION, BUT WE ARE PRICE CONSCIOUS. THAT'S WHY WE USED GARVER TO PRICE CHECK, NOT TO COMPARE, BUT AT LEAST PRICE CHECK TO S SAY, YES, THIS PIPE AND THIS DEVICE IS REASONABLY PRICED, NOT COMPARATIVELY PRICED, WE ADMIT THAT, BUT WE DON'T HAVE -- WITH 8 MONTHS LEFT BEFORE NOVEMBER WE'RE MORE WORRIED ABOUT WATER THAN PRICE COMPARISON RIGHT NOW. >> Mayor Guarjardo: OKAY. COUNCILMAN. >> Cantu: LOOK, ALL I'M SAYING IS WE HAVE 9% IN OUR LAKES, AND IF THE MARY RHODES PIPELINE, SOMETHING HAPPENS, WE'RE SCR SCREWED. I WOULD FEEL MORE COMFORTABLE VOTING ON ALL OF THESE PROMPTS Y YES, YES, YES BECAUSE YOU GUYS DECLARE AN EMERGENCY. I MEAN, I JUST FEEL LIKE WE HAVE TO, WE NEED TO. THIS IS -- WE'RE -- THIS IS A LOT OF MONEY THAT WE HAVE TO APPROVE, YOU KNOW, AND VOTE ON, AND I JUST FEEL LIKE IF IT IT'S -- IF YOU GUYS DECLARE AN EMERGENCY, THEN I HAVE THE REASONS TO TELL THE PEOPLE ASKING ME, WHY ARE YOU SPENDING SO MUCH MONEY? WELL, BECAUSE WE DECLARED AN EMERGENCY, WE HAVE TO, WE HAVE 9% IN OUR LAKES, AND YOU KNOW WHAT HAPPENS, THE MARY RHODES PIPELINE GOES DOWN. YOU KNOW, THIS IS REAL CONCERNS. AND IF YOU GUYS REALLY NEED TO KEEP ON VOTING FOR THIS STUFF, ALL OF THESE PROJECTS AND VO VOTING FOR THIS AND THAT WITHOUT THE BIDDING PROCESS, DECLARE AN EMERGENCY. I MEAN, WE'RE OUT OF WATER. I MEAN, THAT'S WHY WE'RE DOING ALL OF THIS STUFF. AND THEN EVEN IF IT COMES DOWN TO THE MEM MEMBER, TO CUT DOWN, WE DON'T EVEN HAVE A PLAN FOR THAT. WHAT'S THE PLAN FOR TH THAT? WHAT'S GOING TO HAPPEN? WHAT ARE WE GOING TO DO FIRST? I MEAN, WE TALK ABOUT THAT ALL THE TIME, BUT WHAT'S -- WHO'S GOING TO CUT BACK FIRST? WHO'S -- WHAT ARE WE DOING? JUST -- >> Zanoni: WE'RE GOING TO BRING THE CURTAILMENT IN MARCH. WE HAVE THIS MEETING AND THEN ONE MORE MEETING ON THE 24th SUPPLY PROJECTS, AND THEN MA MARCH, THE CURTAILMENT. >> Cantu: IT JUST -- IT'S A LOT OF MONEY, PETER. >> Zanoni: NO. WE UNDERSTAND. >> Cantu: IT'S A LOT OF MONEY, AND I DON'T WANT TO BE RESPONSIBLE FOR BANKRUPTING THI CITY. I MEAN, THIS IS A LOT OF MONEY, AND LIKE -- LIKE COUNCILWOMAN VAUGHN SA SAID, WE'RE GOING TO GET RAIN, AND WHAT HAPPENS IF WE GET RAIN IN 8 MONTHS AND IT SOLVES OUR PROBLEMS OR IN A YEAR FROM NOW. I MEAN, WE SPENT A LOT OF MONEY, YOU KNOW. >> YEAH, COUNCILMAN -- AND IF I COULD JUST SAY, IF THAT HAPPENS, THEN WE'RE STILL GOING TO END UP WITH A DIVERSIFIED WATER SUPPLY THAT THIS COMMUNITY CAN COUNT ON GOING FORWARD. >> Zanoni: YEAH WE'RE DOING TWO THINGS TODAY. AND THEN I'LL TURN IT OVER TO THE MAYOR -- GO AHEAD. >> Cantu: JUST FIGURE THIS EMERGENCY DEAL OUT AND FIGURE OUT THE CONTRACTS FOR REFI REFINERIES. I KNOW ROLAND SAID WE HAVE A COUPLE OF THEM, AND HE'S RIGHT, BUT WE DON'T HAVE ALL OF THEM. SO I'M JUST NOT -- I'M NOT COMFORTABLE SPENDING THIS MUCH MONEY RIGHT NOW, AND THAT'S IT. THANK YOU. >> Zanoni: LET ME ADD ONE THING MAYOR. WHAT WE'RE DOING IS UNPRECEDENTED, AND THE COUNCIL IS RIGHT BEHIND THIS MOVEMENT FORWARD, WHICH IS THAT WE'RE CREATING A SYSTEM TH THAT -- IT'S A GENERATIONAL SYSTEM. THE REASON WE'RE IN THIS POSITION TODAY IS BECAUSE WE DON'T HAVE WHAT WE'RE TRYING TO BUILD, AND IT'S NOT A ONE-TIME USE AND YOU GET RID OF IT, THIS IS A SUSTAINABLE SYSTEM THAT IS GOING TO BE ABLE TO MANAGE TO USE DIFFERENT SOURCES WHEN CONDITIONS ARE DIFFERENT IN SOME OF THE SOURCES. SO WE'LL HAVE REDUNDANCY AND CHOICE WHERE WE GET OUR WATER FROM. TODAY WE DON'T HAVE T THAT. AND THAT'S WHY WE'RE IN THE HORRIBLE SITUATION WE SHOULD NEVER BE IN AGAIN, SO WE'RE BUILDING EMERGENCY PROJECTS TO GET US PAST NOVEMBER, BUT ALSO A SYSTEM THAT HAS REDUNDANCY AND IT'LL NEVER PUT US BACK IN THIS SITUATION. WE HAVE SPENT SO MUCH TIME ON JUST TRYING TO SUPPLY WATER. WE CAN'T EVEN RUN THE REST OF THE CITY, AND THAT'S -- NO CITY SHOULD BE IN THIS POSITION. SO, YES, IT COSTS MONEY. THIS IS CALLED IT'S CATCHING UP TO US. IT'S CAUGHT UP TO US AFTER DECADES OF POSTPONING OF NEGLECT, OF BAD AND NOT GOOD DECISIONS LOOK WHERE WE'RE AT, BUT WE'VE REACHED THE END OF THE ROAD, AND THE GOAL IS NOT TO BE HERE AGAIN. >> Mayor Guarjardo: THANK YOU, PETER. COUNCILMAN ROY. >> Roy: SO I WANTED TO -- PETER I THINK YOU HIT SOMETHING THERE AND I WANT TO EXPOUND ON IT, IS THAT, NUMBER 1, AS A CITY, WE CAN -- WE REALLY DON'T DECLARE AN EMERGENCY, THAT HAS TO COME FROM THE GOVERNOR; RIGHT? AND I'M PRETTY COMFORTABLE IN TERMS OF SAYING THAT THE GOVERNOR K KNOWS WHERE WE'RE AT IN TERMS O EACH STEP OF THE WAY AND WHAT WE'RE DOING HERE. AND ONE OF THE THINGS THAT WE'VE SEEN HERE RECENTLY BECAUSE I WANT TO REEL THIS BACK IN, WE LOOKED AT THESE PROJ PROJECTS, AND WE LOOKED AT THE COST IN TERMS OF WHAT IT WOULD COST THE RATE PAYER; RIGHT? AND I MIGHT BE WRONG BUT I THINK IT WAS -- IF WE LOOK AT THE PROJECTS THAT ARE IN LINE RIGHT NOW, THAT THE POSSIBILITY IS THAT IT WOULD INCREASE THE -- THE AVERAGE RATE PAYER BY $ $15.77; IS THAT CORRECT? >> THAT'S CORRECT, YES, SIR. >> Roy: SO WE HAVE TO KEEP IN MIND, BECAUSE AT THE END OF THE DAY WE CAN DECLARE OR ASK FOR SOMETHING, BUT, AGAIN, THE STAT FIRE -- OR HURRICANE OR WHATEVE THE CASE, WE STILL HAVE TO GO T THE STATE TO GET THAT LEVEL APPROVED, AND IT'S NOT GOING TO RESOLVE ANYTHING. IT DOESN'T TAKE -- IN MY OPINION -- I MEAN, WE WENT THROUGH THE PRO PROCESS. WE KNOW THAT WE CAN SIDESTEP THE PROCUREMENT PROCESS IF WE FEEL THAT WE'RE RUNNING OUT OF TIME OR THERE'S -- THE SITUATION IS ONE THAT IS AN EMERGENCY-LIKE SITUATION. I'M NOT SAYING WE'RE DECLARING EMERGENCY, BUT IN THIS PARTICULAR CASE WE HAVE TO USURP THE SITUATION AND GO AROUND IT, AND THAT'S WHAT WE'VE DONE. AND AT THE END OF THE DAY, WHEN YOU TALK -- YOU KNOW LIKE COUNCILMEMBER HERNANDEZ, IF YOU TAKE A LOOK AT THE COST OF THIS PRO PROJECT, IT'S A REALLY GOOD COST. WE'RE BEING STEWARDS OF OUR MONEY AT THE END OF THE DAY WHEN YOU REFLECT IT IN TERMS OF WHO WE REALLY SHOULD BE CON CONCERNED ABOUT, THE RATE PAYER; CORRECT. AND NOW WE'RE -- YES, THE UNFORTUNATE THING IS THE CLOCK IS TICKING, AND WE'RE RUNNING OUT OF TIME, AND HOW WE GOT HERE, THERE'S ALL KINDS OF SPECULATION IN TERMS OF HOW WE KICKED THE CAN DOWN THE ROAD, BUT WE'RE HERE, AND I WANT TO URGE EVERYBODY TO REMEMBER THAT, BUT WE STILL AREN'T OUT OF THE -- I MEAN, WE STILL HAVE HURDLES, THIS PROJECT HAS HURDLES, THE EVANGELINE HAS HURD HURDLES; RIGHT? BECAUSE WE'RE TALKING ABOUT -- I MEAN, THIS PROJECT -- WE COULD NOT GET A PERMIT THAT IS CORRECT? >> THAT'S CORRECT, YEAH. WE'VE GOT TO WORK THROUGH THAT PROCESS WITH TCQ. >> Roy: SO EACH OF THESE PRO PROJECTS HAS VULNERABILITIES. AND I CAN'T SAY -- JUST LIKE WHEN PEOPLE ASK ME WHAT ARE RATES GOING TO DO IN TWO WEEKS. I DON'T KNOW. BUT WHAT I CAN SAY IS IF WE DON'T PUT ENOUGH OF THESE PROJECTS IN LINE SOME OF THESE PROJECTS I THINK ARE GOING TO FALL OUT. REGARDLESS. WHEN I SAY THAT -- OR THE TIME-FRAME WILL MAKE IT TO THE POINT WHERE IT'S NOT ADVANTAGEOUS. ALL OF A SUDDEN IF WE'RE SITTING HERE ON MARCH 2nd OR 3rd -- WHAT'S THE DATE? >> Winkelmann: 2nd. >> Roy: AND AN ADMINISTRATIVE JUDGE SAYS OH, YES. I FEEL TWO OF THE ENTITIES HAVE A BASIS, WE COULD BE DELAYED UP TO TWO YEARS, RIGHT? >> Zanoni: THAT'S WHAT THEY HAVE TOLD US. >> Roy: NOW THE SCOPE OF THAT PROJECT CHANGES BECAUSE WE CAN DO WHATEVER WE WANT. WE COULD GO THROUGH THAT PROCESS AND IT COULD TAKE TWO YEARS. I UNDERSTAND. IT'S TOUGH. THIS COUNCIL -- WE'RE GOING TO DO THINGS THAT I DON'T THINK ANY OTHER COUNCIL HAS EVER DONE BECAUSE WE HAVEN'T BEEN IN THIS PREDICAMENT. I WANT TO REMIND EVERYBODY ABOUT THAT. BUT AT THE END OF THE DAY, OUR BENCHMARK IS THE RATEPAYER. WE KNOW, BASED ON EVERYTHING THAT WE LOOKED AT, WHAT THE MAXIMUM INCREASE COULD BE TO THAT RATEPAYER IF ALL OF THESE THINGS ALIGNED. BUT IF I WAS A BETTING MAN, WHICH I'M NOT, I DON'T KNOW IF EVERYTHING'S GOING TO ALIGN IN THE TIME-FRAME THAT WE WANT IT TO ALIGN. THAT'S ALL I HAVE. >> Zanoni: RIGHT. >> Mayor Guajardo: OKAY. NICK, THANK YOU. I'M GOING TO GO AHEAD AND ASK FOR PUBLIC COMMENT. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE COMMENT ON ITEM 15? >> ANOTHER LATE NIGHT, GUYS. TREY CRANFORD, OUT OF CITY LIMITS. DESPERATION DICTATES DANGEROUS DECISIONS AND I THINK WE ALL REALIZE IT RIGHT NOW, WE'RE MAKING SOME DECISIONS BASED ON DESPERATION. I HAVE HEARD THE TERM MANY TIMES TONIGHT FROM EACH AND EVERY ONE OF YOU. ONE THING WE TALKED ABOUT LAST MEETING WAS THAT YOU'RE HEARING HALF OF THE STORY. AND I WOULD LIKE TO CONTINUE THAT TONIGHT BECAUSE ALTHOUGH THIS SEEMS LIKE A GREAT PLAN ON PAPER, IT'S MISSING SOME KEY DETAILS. SO, YOU KNOW, ONE OF THE THINGS THAT WE NEED TO TALK ABOUT IS WHAT IS THE COST. I THINK THAT'S A CONCERN ON EVERYBODY'S MINDS RIGHT NOW. BUT HOW DO YOU KNOW WHAT THE COST IS IF YOU DON'T KNOW WHAT THE QUANTITY OF THE EVAPORATIVE PONDS, HOW MANY INJECTION WELLS YOU NEED OR HOW YOU'RE GOING TO DISPOSE OF IT IF IT HAS TO GO INTO THE BAY. IT IS TIERED. YOU GO FROM 3.91 MILLION GALLONS A DAY BUT WHAT HAPPENS TO THE OTHER WATER THAT ISN'T BEING PROCESSED? IT GOES RIGHT BACK INTO THE RIVER. THAT BRINGS UP A NEXT CONCERN IS WHAT IS THE CURRENT TDS, ARSENIC, AND URANIUM CONCENTRATIONS IN THE SOURCE WELLS? WE DON'T KNOW A WHOLE LOT ABOUT IT. WE HAVE WELL NO. 13 THAT'S BEEN SHARED WITH THE PUBLIC, AND THERE'S TRACE ELEMENTS OF EACH OF THEM IN THAT WELL. THERE'S BEEN NINE WELLS THAT HAVE BEEN DRILLED BUT WE DON'T HAVE ANY INFORMATION ON THAT. AT SOME POINT IN TIME YOU PUT OUT YOUR BEST WELL. YOU DON'T WANT TO PUT OUT YOUR WORST ONE FOR BEING SCRUTINIZED. WHAT WE CAN SEE RIGHT NOW IS THE WATER QUALITY ISN'T GOOD. YOU KNOW, ONE QUESTION THAT EQUAL SHOULD ASK, ARE THERE ANY CONSTITUENTS NEAR MCL THRESHOLDS IN THE SOURCE WATER. WILL INCREASED PUMPING CHANGE THE BALANCE OF THE AQUIFER? OF COURSE YOUR TREATMENT COST CHANGES. IT AFFECTS YOUR FILTERS AND EVERYTHING ELSE IN THE SYSTEM. THE REJECT BRINE, OBVIOUSLY THE DISCHARGE IS A BIG CONCERN. IF YOU GO INTO THE BAY, YOU HAVE TO HAVE THE PERMIT. HOW LONG IS THAT GOING TO TAKE? IF YOU TRY TO DO AN INJECTION WELL DOWN HERE, WE KNOW THAT THE FRIO SANDS DOESN'T TAKE WATER REAL WELL. AT THE VOLUME THAT YOU'RE LOOKING AT, YOU'RE NOT GOING TO NEED ONE WELL, YOU'RE GOING TO NEED AT LEAST TWO WELLS. WITH ANYONE THAT HAS EVER WORKED WITH INJECTION WELLS KNOWS YOU NEED REDUNDANCY BECAUSE THEY FAIL OFTEN. LOOKING AT THE BEST WELL IN THE AREA OUT COUNTY ROAD 79 RIGHT NOW, IT IS ABLE TO TAKE ABOUT 1.68 MILLION GALLONS A DAY AT 650 PSI. THAT WATER IS BEING PUSHED INTO THREE DIFFERENT FORMATIONS WITH THAT WELL. ARE WE GOING TO BE ABLE TO FIND THAT AT THE O.N. STEVENS WATER TREATMENT PLANT? THE ANSWER TO THAT IS NO. THE FORMATION WILL NOT TAKE THE DRINK IF YOU'RE LOOKING AT THE TYPE OF VOLUME THAT YOU'RE LOOKING AT WITH THE DISCHARGE. IF IT IS INFECTION WELLS THAT WE GO TO, ARE THEY GOING TO BE CLASS 1 WELLS, WHICH ARE HAZMAT WELLS? THAT ENDS UP BEING A HIGHER COST. THOSE ARE SOME QUESTIONS YOU SHOULD ASK. YOU'RE NOT SEEING THE WHOLE STORY. I APPRECIATE YOUR TIME. THANK YOU. >> Mayor Guajardo: THANK YOU, SIR. ANYONE ELSE? OKAY. WE'RE GOING TO GO AHEAD AND CLOSE PUBLIC COMMENT. I WILL ENTERTAIN A MOTION TO APPROVE ITEM NO. 15. >> SO MOVE. >> SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. THANK YOU, NICK. OUR NEXT ITEM IS ITEM NO. 16. ORDINANCE AUTHORIZING AMENDMENT NO. 2 TO THE MASTER SERVICES AGREEMENT WITH PAPE-DAWSON ENGINEERS FOR CONSTRUCTION MANAGEMENT INSPECTION SERVICES IN THE AMOUNT OF $13,065,100. FOR A TOTAL CONTRACT AMOUNT OF $28,465,100 AND AMENDMENT NO. 1 TO THE CONSTRUCTION MANAGER AT RISK CONTRACT WITH GARNEY COMPANIES, INC. OF KANSAS CITY, MISSOURI FOR CONSTRUCTION SERVICES IN THE AMOUNT OF $182,389,792 FOR A TOTAL CONTRACT AMOUNT OF $185,389,792 FOR THE EVANGELINE/SAN PATRICIO GROUNDWATER PROGRAM. >> Barrera: I MOVE FOR APPROVAL. >> SECOND. >> Mayor Guajardo: NO ONE WANTS TO BRING THIS BACK FOR CONSIDERATION? OKAY. I'M JUST GOING TO -- WE HAVE A MOTION AND A SECOND. WE GOT TO OPEN PUBLIC COMMENT. BUT I DID MISSPEAK. YOU KNOW, MY COMMENTS WERE GEARED TOWARD THIS PARTICULAR ITEM, NOT THE ONE WHERE WE WERE AUTHORIZING THE FUNDING. I'M JUST GOING TO REITERATE. I THINK THAT IN TWO WEEKS -- WE'LL KNOW IN TWO WEEKS -- WE HAVE AN ADMINISTRATIVE JUDGE THAT IS GOING TO JUDGE ON WHETHER THERE IS STANDING OR NOT. MY CONCERN IS TAKING DEBT CAPACITY OF $197 MILLION TODAY ON A PROJECT WE DON'T KNOW WE CAN DELIVER AND THEREFORE THE RATEPAYER IS GOING TO BE AFFECTED. YOU ALWAYS PLAN FOR THE WORST DAY. I'M NOT BEING A DEBBIE DOWNER. YOU PLAN FOR THE WORST DAY AND YOU HOPE FOR THE BEST. AND THE WORST DAY, OUR SCENARIO, IS THERE IS STANDING AND THIS GETS PUSHED BACK WHATEVER. SIX, EIGHT MONTHS, A YEAR, TWO YEARS, THREE YEARS, FOUR YEARS, WE DON'T KNOW. BUT WE'RE GOING TO BE BUYING MILLIONS OF DOLLARS OF EQUIPMENT THAT I WAS TOLD WAS GOING TO BE PUT UP IN A LITTLE WAREHOUSE SOMEWHERE UNTIL IT CAN COME TO FRUITION. SO WHAT I THOUGHT WAS -- I WILL SUPPORT THIS -- BUT IF WE BROUGHT IT BACK TO OUR MARCH 17th MEETING JUST TO RECONSIDER -- NOT RECONSIDER BUT REEVALUATE, IF YOU WILL. IF AND ONLY IF THERE IS STANDING ON ONE OF THOSE CONTESTMENTS. IN THAT CASE, WE AS A COUNCIL CAN LOOK AT THIS AND SAY WE DON'T CARE. WE'RE STILL GOING TO MOVE FORWARD AND LET'S BUY THESE LONG-LEAD ITEMS, ET CETERA. OR WHAT SHOULD WE DO? IF THERE IS CONTESTMENT -- I'M SORRY, STANDING -- SHOULD WE CONSIDER HOLDING OFF ON SPENDING UP TO $197 MILLION ON EQUIPMENT AND PIPELINE THAT WE CAN'T USE. THAT BRINGS ME TO TWO QUESTIONS: WHAT'S THE LEAD TIME AND CAN WE USE THIS PIPELINE ON ONE OF THE OTHER PROJECTS? SO IF WE DID ORDER IT, CAN WE USE IT ELSEWHERE OR IS IT GOING TO SIT IN A WAREHOUSE SOMEWHERE. >> Zanoni: NO, IT'S NOT GOING TO SIT IN A WAREHOUSE. THERE'S A COUPLE OF OPTIONS. THE PLAN WAS TO COME TO COUNCIL AND GET YOUR GUIDANCE AND POLICY DIRECTION WITH A VOTE EACH STEP OF THE WAY. WE'RE WORKING -- IT'S ALMOST WEEK BY WEEK. WE'RE RECOMMENDING LET'S TAKE THE RISK AND PUT IN THE ORDER. THIS TAKES TIME TO PRODUCE. >> Mayor Guajardo: HOW MUCH TIME? >> Zanoni: SOMETIMES MONTHS AND MONTHS FOR THE ELECTRICAL EQUIPMENT. GIVE US THE AUTHORITY TO ORDER IT TODAY. WE'RE GOING TO KNOW SOMETHING THIS FRIDAY, WHETHER OR NOT THE HEARING IS GOING TO TAKE PLACE. ONE OF THE REMINDERS THAT BETWEEN NOW AND MARCH 2, SINTON AND THE OTHER PROTESTERS COULD MEET WITH US AND WITHDRAW THEIR PROTEST. THAT COULD HAPPEN TOMORROW AND THEN THE GROUNDWATER CONSERVATION DISTRICT CAN CONSIDER THE PERMITS AND POTENTIALLY APPROVE THEM. I'M ABOUT TO TEXT THE COUNCIL BUT RYAN SKROBARCZYK, TONIGHT THEY HAD A CITY COUNCIL MEETING. HE MADE ANOTHER PLEA TO THE SINTON CITY COUNCIL SAYING WOULD YOU GUYS TALK TO US, PLEASE? WE'RE HERE. WE WANT TO TALK TO YOU. WE'RE NEIGHBORS. >> Mayor Guajardo: WHAT DID THEY SAY? >> Zanoni: WHAT THEY SAID IS TOMORROW THE CITY OF SINTON IS GOING TO HAVE A MEETING AND WITHIN THE NEXT COUPLE OF DAYS THEY'RE GOING TO GIVE US SOME FEEDBACK. THAT'S ALREADY SHORTER THAN TWO WEEKS, THAN THAT MARCH 2 TIME-FRAME. THERE'S A LOT OF POSITIVE STEPS THAT CAN HAPPEN. BUT THE WHOLE PLAN FOR MYSELF AND THE CITY TEAM IS TO GET ADVICE -- WE'RE NOT GOING TO MAKE A DECISION ALONE ON $196 MILLION. THERE'S A LOT OF STEPS TO SAY GO, DON'T GO, CANCEL, HOLD ON, PUT IT IN THE WAREHOUSE. BUT WE'RE GOING TO MAKE SURE YOU'RE INVOLVED IN THAT PROCESS. ULTIMATELY, THE COUNCIL AND WE COULD SAY WE'RE GOING TO DO THIS PROJECT AND WE KNOW WE'RE PROBABLY GOING TO GET THE PERMITS BUT IT'S GOING TO TAKE TWO YEARS SO LET'S JUST -- WE COULD BUILD EVERYTHING BUT PUTTING IN THE WELLS. AND THEN TWO YEARS FROM NOW YOU DRILL THE WELLS AND CONNECT EVERYTHING. THERE'S A LOT OF OPTIONALITY. WHAT WE DON'T HAVE IS IF WE DON'T PLACE ORDERS FOR MATERIALS THEN WE LOSE TIME AND YOU CAN'T GAIN THAT BACK. EVEN THE TIME FOR JEFF EDMONDS TO ADMINISTRATIVELY AND NICK TO SAY, YES, THIS IS THE TYPE OF PUMP WE NEED. ORDER THAT, DON'T DO THIS. HERE'S THE PAPERWORK. WE'RE GOING TO PUT THAT IN THE SYSTEM. ALL THE PROCESSING OF THIS STUFF TAKES TIME. WE'RE SAYING LET US BEGIN THE PROCESS. BUT WE KNOW THAT WE CAN STOP AND WE KNOW WE CAN GET ADVICE FROM THE COUNCIL TO STOP OR WE CAN STOP TO SAY WE'RE JUST GOING TO STOP THIS. >> Mayor Guajardo: SO THE MONEY CAN SIT THERE? >> Zanoni: THE MONEY CAN SIT THERE. I ASKED THE QUESTION WHAT HAPPENS IF WE ORDER THE PUMPS AND THE PIPES AND WE DON'T WANT IT ANYMORE? YOU SEND IT BACK AND YOU PAY A RESTOCKING FEE. BUT IN OUR MINDS THAT'S BETTER THAN RUNNING OUT OF WATER. >> Mayor Guajardo: WELL, OF COURSE IT IS. BUT I'VE GOT THE RATEPAYER THAT I'M PUTTING -- >> Zanoni: YEAH. >> Mayor Guajardo: I DON'T MEAN THAT DISRESPECTFULLY, PETER. THAT IS YOUR JOB. >> Zanoni: I WAS JUST GOING TO SAY WE WON'T HAVE A RATEPAYER IF WE DON'T HAVE ANY WATER. >> Mayor Guajardo: I KNOW THAT. >> Zanoni: MINUS THE WATER FIRST AND THE RATE SECOND. >> Mayor Guajardo: YOU'RE HEARING A LOT OF PEOPLE TALK ABOUT HOW MUCH MONEY WE ARE SPENDING -- >> Zanoni: IT'S A LOT. >> Mayor Guajardo: MILLIONS UPON MILLIONS UPON MILLIONS. WE'RE, LIKE YOU JUST SAID, WE HAVE BEEN BACKED UP INTO A CORNER. WE DON'T HAVE A CHOICE. >> Zanoni: WHAT I ALSO SAID LAST WEEK AND I'LL SAY IT AGAIN NOW. THIS COUNCIL IS DOING -- YOU ARE DOING MOMENTOUS WORK. THIS IS BUILDING A SYSTEM WE HAVE NEVER HAD BEFORE. AND YET THE VOTES HAVE BEEN ALMOST UNANIMOUS. I'M APPLAUDING YOU. THIS COUNCIL IS THE ONLY ONE IN MY SEVEN YEARS HERE -- AND PROBABLY IN DECADES -- THAT'S BUILDING A SYSTEM THAT'S RESILIENT AND REDUNDANT. SO I'M LOOKING AT IT OPTIMISTICALLY. YES, WE'RE SPENDING HUNDREDS OF MILLIONS OF DOLLARS BUT WE'RE KIND OF FORCED TO DO IT AT THIS POINT. >> Mayor Guajardo: I AGREE BUT AS LONG AS WE HAVE MEASURES TO BE ABLE TO, LIKE YOU SAID, WE'RE GOING TO BE ABLE TO -- IF THAT DOESN'T MOVE FORWARD, WE HAVE THE OPTION TO HOLD OFF. >> Zanoni: YOU HAVE MY WORD THAT YOU HAVE THAT. CHRIS FROM PAPE-DAWSON KNOWS THAT. HE'S HELPING US DEVELOP OPTIONALITY AND HE'S GOING TO KNOW WHEN TO SAY YOU MIGHT WANT TO PULL THE PLUG. OR NOT. OR YOU MIGHT WANT TO SLOW IT DOWN OR YOU MIGHT WANT TO DO THIS. YOU MIGHT WANT TO PHASE IT DIFFERENTLY. BUT WHAT WE DO KNOW, ONCE TOMORROW AN ORDER IS NOT PLACED YOU LOSE A DAY AND EVERY DAY MATTERS WHEN YOU TRY TO GET EQUIPMENT THAT THERE'S A DEMAND FOR INTERNATIONALLY. IT'S NOT JUST HERE. THE WHOLE WORLD WANTS THIS TYPE OF EQUIPMENT. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: I PROMISE TO BE FAST. PETER, YOU MADE A COMMENT A FEW MINUTES AGO THAT I'M GOING TO TAKE GREAT EXCEPTION TO. YOU TALKED ABOUT WATER BEING DECADES OF NEGLECT AND FAILURE TO MAKE DECISIONS WHEN COUNCILWOMAN VAUGHN AND I WERE HERE LAST. WE HAD WATER AND WE WERE WORKING FOR A PLAN THROUGH DESALINATION. I DON'T KNOW WHAT YOU HAVE DONE DURING YOUR TIME HERE BUT I'M TIRED OF YOU BLAMING OUR CURRENT POSITION ON DECADES OF NEGLECT. I'M GOING TO ASK YOU -- AND WE LAUGHED ABOUT THAT WHEN WE TALKED PREVIOUSLY. I'M A LITTLE SENSITIVE TO THAT STATEMENT. I'M ALSO SENSITIVE TO COMMENTS THAT WERE MADE TO THIS BODY BACK IN JULY 29 OF LAST YEAR. TRANSFER PERMIT, IT'S JUST A FORMALITY. TRANSFER PERMIT IS NOT AN ISSUE. I'M A LITTLE SENSITIVE THAT I THINK WE BOUGHT INTO THIS PROJECT BASED ON A SET OF COMMITMENTS THAT WE HAVEN'T MADE. THAT'S NOT YOUR FAULT NOR IS THAT YOURS BUT I DO EXPRESS THAT. I DO HAVE ONE QUESTION: HOW MUCH DO YOU NEED TO SPEND IN THE NEXT TEN DAYS? I JUST NEED TO KNOW. I WANT TO KNOW WHAT MY HEARTBURN LEVEL IS. THAT'S WHAT HE'S SAYING. WE HAVE TO JUMP OUT THERE IN THE NEXT TEN TO TWO WEEKS. THAT'S OKAY. JUST GIVE ME A SENSE OF -- >> CHRIS NOE WITH PAPE-DAWSON. YOU WOULD PROBABLY HAVE TO SPEND CLOSE TO $100 MILLION OR SO TO GET IN LINE FOR WHAT YOU WANT TO DO. LET'S BE CLEAR WHAT YOU'RE ASKING US TO DO. IF WE WANT TO KEEP TO THE GOAL OF TRYING TO DELIVER THE MOST AMOUNT OF WATER BY NOVEMBER, YOU HAVE TO BUY A PIPELINE. YOU HAVE TO BUY THE WELLS, THE WELL PUMPS, I SHOULD SAY. YOU HAVE TO GET THE ELECTRICAL EQUIPMENT FOR THE WELLS. SO YOU'RE LOOKING AT A NUMBER LIKE THAT, COUNCILMAN. >> Scott: OKAY. THEN YOU'RE TELLING ME WE NEED TO SPEND $100 MILLION IN THE NEXT TWO WEEKS -- BY THE WAY, I LIKE YOUR PLAN. IT SAYS FOUR IN NOVEMBER, ONE IN DECEMBER. IT'S A TOTAL OF 12 BY NEXT MAY. IF THAT WORKS OUT, I THINK IT REALLY HELPS OUR CAUSE. >> YOU ASKED ME FOR A SCENARIO, WHICH WAS TO GIVE YOU WHAT YOU ORIGINALLY ASKED FOR. AND I THINK WHAT THE CITY MANAGER HAS SAID, IF WE HAVE APPREHENSION ABOUT WHAT WE WANT TO DO, CAN WE COME UP WITH DIFFERENT OPTIONS? CAN WE WORK THROUGH OTHER SOLUTIONS TO GIVE YOU SOMETHING THAT ISN'T ON THAT SCHEDULE THERE? THAT IS SOMETHING WE SHOULD CONSIDER TRYING TO DO. YOU ASKED ME A QUESTION WHAT DO WE NEED TO DO TO ACHIEVE THAT SCHEDULE WE PROVIDED EARLIER. >> Scott: CAN WE USE THAT ON OTHER PIPELINES? IS THE SAME TYPE OF PIPE GOING TO BE USED IN EVANGELINE THAT WILL BE USED IN OUR BRACKISH PROJECT? >> Winkelmann: I CAN ANSWER THAT. THERE'S DEFINITELY A COMMONALITY IN THE PIPES. A LOT OF IT IS PVC. LET'S JUST GO BACK TO SOME OF THE WORK CCW DOES AROUND TOWN. THERE'S 12-INCH AND 16-INCH. THOSE ARE COMMON SIZES THAT CCW USES. >> Scott: I AM CONCERNED THAT THEY GET STANDING AND IT PUTS US IN A NEGOTIATION BIND. I'M GOING TO SUPPORT THIS. I THINK WAITING TWO WEEKS -- IF THEY GET STANDING, THEN I THINK WE'RE GOING TO HAVE A CONVERSATION WITH OUR NEIGHBORS THAT'S GOING TO BE SOMETHING DIFFERENT THAN WHAT WE BOUGHT INTO. AND WE'RE GOING TO BE $100 MILLION IN THIS AND IT WILL BE DIFFICULT TO EXIT. I HOPE I'M WRONG BUT I WILL VOTE YES. >> Mayor Guajardo: COUNCILMAN BARRERA. >> Barrera: OKAY. YEAH. I JUST WANT TO REITERATE TO EASE THE MAYOR. I MEAN, WE'RE JUST BASICALLY TRYING TO EXPEDITE THIS. BUT YET WE'RE -- I THINK IT'S IMPORTANT -- I'M CONFUSED NOW. [LAUGHTER] PAPE-DAWSON. THAT WE EXERCISE THIS TO GET THEM. BECAUSE THE PLAN IS LONG-TERM TO DRILL THE WELLS . I DON'T SEE IT HAPPENING FOR A COUPLE OF YEARS. I THINK IF WE WOULD HAVE GONE WHAT WE INITIALLY SAID, YOU KNOW, I THINK THE DEVELOPER GOT A LITTLE AGGRESSIVE AND THEY SAW DOLLAR SIGNS AND ALL OF A SUDDEN NOW THAT PUT US AT THIS POSITION. I THINK IT WAS MUCH MORE AMENABLE TO OUR FRIENDS IN THE NEIGHBORING COUNTY WHEN WE WERE LOOKING AT 10 MGD AND THEN BLENDING. I THINK THE CHALLENGE THAT I'M WORRIED ABOUT IS WE NEED TO MAKE SURE WE START THE ENGINEERING BECAUSE, YOU KNOW, LIKE THE QUESTION I ASKED BEFORE. SO ONCE -- THE WAY WE'RE GOING TO DESIGN THE MARY RHODES PIPELINE IS IT'S GOING TO HAVE TO RUN AT FULL CAPACITY. AT WHAT CAPACITY? >> Winkelmann: RIGHT. TO RECEIVE ALL 24 MILLION GALLONS A DAY FROM EVANGELINE INTO THE MARY RHODES PIPELINE, IT NEEDS TO OPERATE AT SCHEDULE 4 AND SAN PAT AND SCI NEED TO MAINTAIN THEIR EXISTING TAKEOFF FROM THE PIPELINE AS WELL. >> Barrera: OKAY. ARE WE GOING TO LOOK AT OTHER OPTIONS? BECAUSE ONCE AGAIN, THE GOAL IS NOT TO USE THIS WATER. IT'S A TEMPORARY SOLUTION BECAUSE OF ALL THE UNKNOWNS THAT ALL THE LANDOWNERS AROUND THAT ARE UTILIZING GROUNDWATER ALL ACROSS TEXAS ARE GREATLY CONCERNED. ARE WE GOING TO REVIEW OTHER OPTIONS BECAUSE, YOU KNOW, AND I'VE SAID IT. THAT DESALINATION IS WHAT PROVIDES THE MOST CERTAINTY. WE ARE UTILIZING THIS SO WE CAN LESSEN THE PRESSURE ON OUR RESERVOIRS, ALLOW THEM TO REPLENISH. YOU KNOW, A LOT OF THE GROUNDWATER DISTRICT, IT APPEARS, FROM WHAT I'M HEARING AND WHAT I'VE HEARD FROM YOU IS THEY DON'T WANT THE FULL 24 MILLION GALLONS AT ONE TIME. SO EVEN IF WE HAVE TO SPEND MORE MONEY TO ENSURE WE'RE NOT HAVING TO RUN MARY RHODES AT FULL CAPACITY -- BECAUSE IF WE'RE RUNNING MARY RHODES AT FULL CAPACITY, THEN WE'RE DRAINING LAKE TEXANA AND WE'VE SHIFTED OUR PROBLEM FURTHER NORTH. I MADE THE MOTION TO APPROVE THIS. I JUST WANT YOU TO RECOGNIZE THAT. SO I JUST WANT TO MAKE SURE THAT WE'RE NOT WORKING FOR THE DEVELOPER, WE'RE WORKING FOR THE SAKE OF ENSURING THAT THE IDEA IS TO PROTECT THOSE RANCHERS AND FARMERS ON BOTH SAN PAT AND NUECES COUNTY BECAUSE THAT'S WHAT THEY'RE LOOKING FOR IS CERTAINTY. BECAUSE THAT WAY WE HAVE -- THIS IS ONLY A SUPPLEMENTAL RESOURCE. SO ARE WE GOING TO -- ARE WE ONLY DESIGNING IT TO FULL CAPACITY? >> Winkelmann: NO. IT WILL ABSOLUTELY BE ABLE TO OPERATE AT LESS CAPACITY. MAYBE 12 MGD. MAYBE 10 MGD. THAT GIVES US THE OPERATIONAL FLEXIBILITY TO MANAGE IT GOING FORWARD IN THE FUTURE. >> Barrera: I UNDERSTAND THE SAN PAT MUNICIPAL WATER DISTRICT IS NOT TOO EXCITED ABOUT THE BLENDING EITHER. I WANT TO ENSURE WE'RE NOT PUTTING OURSELVES, OUT OF DESPERATION, AS TREY MENTIONED -- IS HE STILL HERE? HE LEFT ALREADY? THAT WE'RE NOT MAKING DECISIONS IN DESPERATION BECAUSE ONCE AGAIN THE DEVELOPER -- I THINK THE DEVELOPER HAD A DEAL PROBABLY TWO YEARS AGO THAT WE PROBABLY COULD HAVE NEGOTIATED. BUT ONCE AGAIN, THEY SAW THE OPPORTUNITY. AND THEN WHEN WE DECIDED TO CANCEL OUR CONTRACT WITH KIEWIT, THEN ALL OF A SUDDEN THEY WERE IN A VERY STRONG POSITION. YOU'RE CONFIRMING FOR ME THE IDEA, EVEN THOUGH WE'RE GOING TO SPEND $190 MILLION THAT I JUST WANT TO ENSURE THAT THAT IS JUST TO ENSURE THAT WE HAVE THE CAPABILITY BUT WE'RE GOING TO DO THAT. CHRIS? >> THANK YOU. I WANTED TO CLARIFY SOMETHING I JUST SAID. SO WHEN I SAID $100 MILLION IN THE NEXT TEN DAYS, WHAT THAT REALLY MEANS IS THIS: IT GIVES THEM THE OPPORTUNITY TO PUT UNDER CONTRACT. YOU ACTUALLY DON'T SPEND THE MONEY OR PAY FOR IT UNTIL THE MATERIALS ARRIVE ON SITE. SO FOR LONG-TERM ITEMS, LONG-LEAD ITEMS, WE ARE LOOKING FARTHER DOWN THE LINE BEFORE THAT MONEY IS TO BE SPENT. >> Barrera: I HAVE CONFIDENCE AND I KNOW THAT'S THE CASE. I KNOW WE'RE NOT GOING TO, YOU KNOW, IT'S JUST LIKE WHEN I BOUGHT MY FIRST CAR ON MY OWN. MY DAD THOUGHT I WAS NUTS. IN 1984, I SPENT $1,000 IN TIRES. YOU KNOW, BUT MIND YOU THE TRUCK WAS ONLY 8500 BUCKS. AND THE STEREO SYSTEM WAS ANOTHER THOUSAND DOLLARS. I'M JUST SAYING THAT I UNDERSTAND, TO TRY TO PUT IT IN LAYMAN'S TERMS, AS MARK SAYS, SMALL WORDS, SHORT SENTENCES. I WANT TO ASSURE THE CITIZENS OF SAN PATRICIO COUNTY AND NUECES COUNTY THAT THIS IS A TEMPORARY SOLUTION FOR THIS COMPONENT SO THAT WAY WE'RE ABLE TO DIVERSIFY. BUT I DON'T WANT TO -- I JUST WANT TO ENSURE NOW THAT WE'RE NOT -- IF WE'RE RUNNING MARY RHODES AT FULL CAPACITY -- THEN WE'RE GOING TO BE DRAWING DOWN LAKE TEXANA. WHEN WE WERE BEING CRITICIZED A YEAR AGO OR TWO YEARS AGO BEFORE THIS COUNCIL WAS ON BOARD -- I GOT FIVE SECONDS. IS IT MY SECOND TIME TO SPEAK? WE WERE BEING CRITICIZED BECAUSE OF THE FACT THAT WE WEREN'T USING MARY RHODES TO FULL CAPACITY AND NOW WE ARE AND APPARENTLY THOSE GENIUSES -- I WAS ONE OF THEM -- DIDN'T COUNT ON LOWERING THE CAPACITY OF LAKE TEXANA. THANK YOU. I APPRECIATE THE COURTESY. >> Mayor Guajardo: THANK YOU, COUNCILMAN. COUNCILMAN HERNANDEZ. >> Hernandez: OKAY. SO MAYBE I AM MISUNDERSTANDING WHAT HE'S TRYING TO SAY THAT THESE ARE TEMPORARY SOLUTIONS. THEY ARE NOT. THIS IS DIVERSIFYING OUR WATER SUPPLY SO WE DON'T RELY HEAVILY ON SURFACE WATER. AND GROUNDWATER'S PART OF IT. BRACKISH WATER DESAL IS PART OF IT, WASTEWATER REUSE IS PART OF IT. HOPEFULLY, KNOCK ON WOOD, WE GET TO KEEP SOME WATER FROM LAKE CORPUS CHRISTI AND CHOKE CANYON. I'M NOT COUNTING ON IT BUT I'M LOOKING AT THE NUMBERS. YOU KNOW, EVANGELINE IS 22,000 ACRES AND WE'RE COMPLYING WITH THE GROUNDWATER CONSERVATION DISTRICT OF 1.25-ACRE FEET OF WATER PER ACRE OF LAND. YOU KNOW, WHICH WE'RE TAKING 11-ACRE FEET OF WATER FROM THE 2,700 ACRES IN BRACKISH WATER FROM THE NUECES COUNTY NEAR BLUNTZER. WE'RE WAY BELOW ON A PER ACRE BASIS. WE'RE NOT EMPTYING OUT THE SAN PATRICIO. THERE'S AN ADDITIONAL 6 MILLION -- WE'RE GOING TO TALK ABOUT THIS IN THE NEXT ITEM -- FROM LI RANCH ON TOP OF THAT. YOU'RE TALKING A TOTAL OF 30 MILLION GALLONS A DAY FOR ROUGHLY $6.63 PER THOUSAND GALLONS. IS THAT ABOUT RIGHT? OKAY. SO IN CONTRA CONTRAST, YOU KNOW, THE DESALINATION FACILITY FROM KIEWIT WAS CLOSER TO $12 PER THOUSAND GALLONS. IT IS A NO-BRAINER TO GO WITH THE LOWER COST WATER THAT GETS YOU THE SAME AMOUNT OF WATER. I CAN DO MATH, THOUGH. SO, YOU KNOW, THIS IS THE REASON WHY WE WENT IN THIS DIRECTION. COST PER THOUSAND GALLONS IS ULTIMATELY -- YOU COULD LOOK AT THE PROJECT AND SEE WHAT YOU'RE SPENDING -- BUT IT'S WHAT YOU'RE PAYING ON A PER THOUSAND GALLON BASIS THAT WE HAVE TO BE ACCOUNTABLE TO THE RATEPAYER. THIS IS ONE OF THOSE GOOD PROJECTS. YOU KNOW, OBVIOUSLY I WOULD LOVE TO SPEND A LITTLE LESS. I THINK $400 MILLION IS A LITTLE HIGH ON THE INFRASTRUCTURE BUT HOPEFULLY YOU GUYS CAN DO SOME CREATIVE ENGINEERING TO REDUCE THAT COST. ANYTHING WE CAN DO TO GET BELOW $6 WOULD BE GREAT. I ADD THIS UP. 30MILLION GALLONS A DAY FROM THAT GROUNDWATER PROJECT. 20MILLION GALLONS A DAY FROM THE NUECES GROUNDWATER PROJECT. 16MILLION FROM WASTEWATER REUSE? >> Winkelmann: 16 WHEN IT'S ALL COMPLETE. >> Hernandez: WE'RE LOOKING AT, WHEN YOU ADD ALL THOSE UP, THAT'S 67 MILLION GALLONS A DAY. OKAY. OUR TARGET WAS 70. RIGHT? >> Zanoni: YEAH. >> Hernandez: IF WE COULD GET SOME OF OUR -- LOSE LESS OF OUR TREATED WATER IN OUR SYSTEM, MAYBE WE CAN ACHIEVE THAT 70 MILLION GALLONS A DAY AND ANYTHING WE GET FROM LAKE CORPUS CHRISTI AND CHOKE CANYON IS BONUS AND WE CAN ALTERNATE THINGS AROUND AND THEN WE CAN LOOK AT PROJECTS WITH MORE TIME-FRAME, A LONGER LEAD TIME FOR THINGS GOING OUT IN THE FUTURE, 20, 30 YEARS DOWN THE ROAD. WE CAN START PREPARING FOR THOSE NOW. BUT THIS IS A GREAT PLAN FOR US TO DIVERSIFY OUR WATER SUPPLY FROM WASTEWATER REUSE, BRACKISH WATER, AND WELL WATER TO GET US TO WHERE WE NEED TO BE. JUST LOOKING AT THE NUMBERS, THIS IS WHERE WE -- WE'RE ACHIEVING THE WATER WE NEED ASSOCIATED WITH IT FOR REALLY A VERY GOOD PRICE ON A PER THOUSAND GALLON BASIS. I APPRECIATE THE WORK WE'RE DOING. YOU KNOW, LIKE I SAID, I'M A LITTLE LEERY OF THE PROCUREMENT PROCESS BUT WE'RE IN A SITUATION AND I APPRECIATE THE WORK BEING DONE. THANK YOU. >> Zanoni: WE DO APPRECIATE THOSE COMMENTS. >> Mayor Guajardo: COUNCILMAN CANTU. >> Cantu: PETER, I THINK YOU ARE 100% RIGHT, THE COMMENTS YOU MADE. MY NEIGHBOR MARK IS A LITTLE GRUMPY RIGHT NOW. >> Zanoni: HE'S TIRED. >> Cantu: HE'S TIRED. I WISH WE DID BUSINESS WITH HOME DEPOT BECAUSE WE COULD RETURN THE PIPE TO THEM. I JUST FEEL LIKE THIS IS A SALES PITCH. SPENDING $100 MILLION IN TWO WEEKS? THAT JUST BLOWS MY MIND. IT REALLY DOES. I'M REALLY UPSET, THOUGH, THAT YOU GUYS HAVE US HERE MAKING THESE KINDS OF DECISIONS AT 9:00 P.M. LIKE, THIS IS MILLION-DOLLAR DECISIONS AND WE'RE LISTENING TO THE MOST IMPORTANT STUFF ON THE AGENDA AT THIS TIME, 9:00 AT NIGHT. IT JUST BLOWS MY MIND. I CAN'T EVEN THINK STRAIGHT. I'M TIRED. SO ANYHOW, MAYOR, IS IT POSSIBLE WE COULD RECESS AND COME BACK TOMORROW FOR THE OTHER AGENDA ITEMS? I MEAN, THIS IS A LOT OF MONEY. I JUST DON'T UNDERSTAND WHY WE'RE MAKING THESE KINDS OF DECISIONS AT 9:00 AT NIGHT. WE'VE BEEN HERE SINCE 10:00 A.M. AT LEAST I HAVE BEEN HERE SINCE 10:00 A.M. >> Mayor Guajardo: YEAH. I THINK ALL OF THESE WATER ITEMS -- I MEAN, THEY HAD TO BE PUT ON NOW, LIKE YOU SAID, IN THE NAME OF TIME. BUT ALSO, COUNCILMAN, I AGREE WITH YOU. EVERYBODY'S TIRED BUT I KNOW WE HAVE PEOPLE IN THE AUDIENCE THAT ARE WAITING, STILL WAITING. >> Cantu: I UNDERSTAND. I JUST FEEL LIKE THIS KIND OF STUFF NEEDS TO BE AT THE FRONT OF THE AGENDA BECAUSE THIS IS THE MOST IMPORTANT STUFF THAT WE'RE DOING. WE'RE MAKING DECISIONS ON AND THIS IS TAKE TAXPAYER MONEY. THIS IS MILLIONS OF DOLLARS. >> Mayor Guajardo: I HEAR YOU. WELL, WE DO HAVE A MOTION AND A SECOND ON THIS, DON'T WE? YEAH. >> Winkelmann: MAYOR, IF I COULD, I DO WANT TO RECOGNIZE WHO IS HERE. I APPRECIATE THEM FOR BEING HERE TODAY. >> Mayor Guajardo: OKAY. THANK YOU. YEAH. WE DID PUBLIC COMMENT. WE HAD A MOTION AND A SECOND? >> City Secretary: MAYOR, WE DIDN'T DO PUBLIC COMMENT. >> Mayor Guajardo: I THOUGHT YOU JUST SAID WE DID. WE'RE GOING TO OPEN PUBLIC COMMENT. WOULD ANYBODY LIKE TO SPEAK ON ITEM NO. 16? OKAY. THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. ITEM NO. 17 IS AN ORDINANCE AUTHORIZING EXECUTION OF A GROUNDWATER RIGHTS PURCHASE AND SALE AGREEMENT FOR PURCHASE OF LI RANCH -- >> Zanoni: YEAH, LI RANCH. >> Mayor Guajardo: AS PART OF THE EVANGELINE GROUNDWATER PROJECT IN AN AMOUNT UP TO $38 MILLION. >> SO MOVE. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. I'LL GO AHEAD AND OPEN PUBLIC COMMENT. WOULD ANYONE IN THE AUDIENCE LIKE TO MAKE COMMENT ON ITEM NO. 17? OKAY. WE'LL CLOSE PUBLIC COMMENT. COUNCILMAN HERNANDEZ. >> Hernandez: REAL QUICK QUESTION ON THIS ONE. I KNOW IT'S 9:00. YOU KNOW, WE REQUIRED THE EVANGELINE LAGUNA TO MAKE SURE THEY HAD THE PERMITS BEFORE WE COMMITTED TO THE PAYMENT. FOR THE PUBLIC CONSUMPTION -- >> Winkelmann: YEAH. LI RANCH NEEDS TO HAVE THE TRANSPORT PERMIT AND THE DRILLING PERMITS. EVANGELINE LAGUNA HAD THE PRODUCTION PERMITS. THOSE THREE ARE REQUIRED BEFORE WE CLOSE . >> Hernandez: WE'RE COMMITTED TO SPENDING THE MONEY, PUTTING IN THE CAPITAL IMPROVEMENT PLAN, BUT WE'RE NOT GOING TO PAY UNTIL ALL OF THE DUCKS ARE IN A ROW. >> Zanoni: CORRECT, COUNCILMAN. WE NEED PRODUCTION, DRILLING, TRANSPORT. >> Hernandez: I BROUGHT THAT FORWARD JUST BECAUSE I WANT TO MAKE SURE THAT IS BROUGHT UP IN PUBLIC AND WE'RE NOT JUST SPENDING THE MONEY WITHOUT GETTING ANYTHING IN RETURN. >> Zanoni: THANK YOU FOR HIGHLIGHTING. >> Hernandez: THANK YOU. >> Mayor Guajardo: WE'RE GOING TO GO AHEAD AND OPEN PUBLIC COMMENT. WOULD ANYONE IN THE AUDIENCE LIKE TO MAKE COMMENT ON ITEM NO. 17? WE'LL CLOSE PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. ITEM NO. 18 IS A MOTION AWARDING A CONSTRUCTION CONTRACT TO SOUTH TEXAS BUILDING PARTNERS, INC. OF CORPUS CHRISTI, TEXAS FOR THE CONSTRUCTION OF THE NORTH SIDE AQUATICS CENTER IN THE HILLCREST AREA IN AN AMOUNT UP TO $8,709,077.22. >> Barrera: I MOVE FOR APPROVAL. >> SECOND. >> Mayor Guajardo: COUNCILMAN BARRERA AND COUNCILWOMAN CAMPOS. THEY SAID IT FIRST. >> [OFF MIC] >> Mayor Guajardo: IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE A COMMENT ON ITEM NO. 18? >> MAYOR AND COUNCIL, MY COMMENTS WOULD BE VERY BRIEF. I WOULD LIKE TO ENCOURAGE YOU ALL TO MOVE FORWARD. >> City Secretary: REVEREND WILLIAMS, WILL YOU STATE YOUR NAME AND CITY. >> HENRY WILLIAMS, DISTRICT 1, HILLCREST RESIDENT. I WOULD LIKE TO ENCOURAGE YOU ALL TO MOVE FORWARD WITH THE MOTION THAT IS STATED HERE IN ITEM 18. TO MOVE FORWARD WITH IT. IT WOULD BE A BLESSING TO OUR NEIGHBORHOOD AND TO THE CITY. THANK YOU. >> Mayor Guajardo: THANK YOU, SIR. ANYONE ELSE? >> THANK YOU FOR WAITING. >> TINA BUTLER, CORPUS CHRISTI, TEXAS. I HAVE BEEN HERE SINCE 10:00 TODAY TOO. I WANT TO SAY THANK YOU FOR MOTIONING TO ACCEPT THAT. TO ACCEPT THIS AGENDA ITEM AND MOVE FORWARD WITH IT. JUST WANTED TO EXPRESS ALSO THAT SOME PEOPLE -- I UNDERSTAND ABOUT THE CITY SPENDING A LOT OF MONEY. A BULK OF THAT WAS FROM TxDOT. SO I'VE SEEN THE NEWS ARTICLES AND SOME OF THE OTHER COMMENTS ABOUT THE CITY. BUT A LOT OF THIS WAS FROM TxDOT. SO, AGAIN, THANK YOU. I ALSO JUST WANTED TO SAY ON THAT MOTION WITH COUNCILWOMAN VAUGHN, SHE SAID IT TWICE THAT SHE MADE A MOTION TO TABLE IT. THE FIRST TIME AFTER SHE MADE A MOTION SHE SAID I'M GOING TO MAKE A MOTION AND TABLE IT AND COME BACK. AND THEN COUNCILMAN HERNANDEZ WAS ASKING FOR CLARIFYING QUESTIONS. THE SECOND TIME SHE SAID I CANNOT -- THIS IS BACKWARDS TO ME. HOW DO Y'ALL EXPECT ME TO VOTE? I MAKE A MOTION TO TABLE. THAT WAS A MOTION THAT WAS NOT CALLED FOR A SECOND. I JUST WANTED TO POINT THAT OUT AS WELL. >> Mayor Guajardo: THANK YOU. PETER, FOR THE PUBLIC TO KNOW, JUST REITERATE BASICALLY THE MEMO OR THE TEXT THAT YOU SENT US REGARDING THIS PROJECT? >> Zanoni: YES, I CAN, MAYOR. SO THE CITY IS PART OF A FOUR-PARTY AGREEMENT THAT'S WITH THE FEDERAL GOVERNMENT, WITH THE HIGHWAY ADMINISTRATION, ALSO SOME OTHER LOCALS HERE, THE PORT OF CORPUS CHRISTI, AND THE HOUSING AUTHORITY. AND WE AGREED TO REMEDY SITUATIONS FROM THE BRIDGE AND THE DEMOLITION OF STRUCTURES AROUND THE OLD BRIDGE AND THEN THE CONSTRUCTION OF THE NEW BRIDGE. ONE OF THOSE AGREEMENTS WAS TO REPLACE WHAT WAS THE T.C. AYERS SWIMMING POOL WITH ANOTHER SWIMMING POOL. ALONG THE CONVERSATIONS, WE TRIED TO DO SOMETHING THAT WAS AQUATIC AND THAT WAS REJECTED BY THE CAB. I MET WITH THE FEDERAL GOVERNMENT FOLKS AND THEY SAID THE CITY, YOU'RE GOING TO HAVE TO PUT THE POOL IN. WE SAID WE REALLY DON'T HAVE THE MONEY. WE'LL TRY. THEN THE STATE STEPPED IN, AS THE SPEAKER SAID, AND SAID WE'LL GIVE YOU $5.5 MILLION. YOU COME UP WITH THE DIFFERENCE, WHICH IS $5 MILLION, AND WE'LL BE ABLE TO PUT THE POOL IN. THAT'S WHERE WE ARE. THAT'S WHY IT WAS RECOMMENDED IN THE CAPITAL BUDGET. TODAY THIS IS NOT APPROVING THE PROJECT, IT'S APPROVING THE CONTRACT TO BUILD THE POOL. BUT IT IS A FEDERAL REQUIREMENT AND IT'S CONTINGENT UPON IF WE DON'T DO THIS THEN FLATIRON/DRAGADOS, THE PEOPLE BUILDING THE BRIDGE WON'T GET THE FINAL PAYMENT. THAT'S BEEN RECONFIRMED TODAY BY OUR LEGAL DEPARTMENT. SO WE HAVE GOT TO BUILD THE POOL PRIOR TO THE ENTIRE OLD BRIDGE BEING DEMOLISHED OR FUNDING WON'T FLOW TO THE BUILDER. SO THERE'S LEGAL AGREEMENTS THAT BIND US TO THIS. THERE'S PAYMENTS THAT WON'T BE MADE FROM THE FEDERAL GOVERNMENT TO THE STATE TO THE LOCAL CONTRACTORS. PLUS, ALL OF THAT SAID, WE SUPPORT COMMUNITY QUALITY OF LIFE AMENITIES. THE NORTH SIDE OF OUR COMMUNITY DOES NOT HAVE A SWIMMING POOL. THERE'S POOLS ALL AROUND BUT THE NORTH SIDE. IT DOES REPLACE A POOL THAT WAS THERE, THE T.C. AYERS POOL. IT HAS WATER-SAVING FEATURES TO INCLUDE A COVER THAT WOULD COVER THE ENTIRE POOL. WE PUT AGENTS IN THE WATER OF THE POOL TO MINIMIZE EVAPORATION. IT'S GOING TO TAKE OVER A YEAR AND A HALF TO BUILD THE POOL SO PROBABLY WON'T BE OPEN EVEN NEXT SUMMER. HOPEFULLY BY NEXT FALL WE'RE OUT OF THIS DROUGHT, ALMOST TWO YEARS FROM NOW. WE FEEL CONFIDENT IN RECOMMENDING THE CONSTRUCTION CONTRACT TODAY. >> Mayor Guajardo: OKAY. THANK YOU. I WANTED THAT TO BE STATED FOR THE PUBLIC BECAUSE A LOT OF PEOPLE ARE BEING CRITICAL OF THIS. BUT BESIDES THE FACT THAT THERE'S A TIMELINE WE HAVE TO MEET. IT WAS SOMETHING AGREED UPON YEARS BACK. >> Zanoni: CORRECT. >> Edmonds: IT WAS ALSO BOND '24. >> Zanoni: THE VOTERS APPROVED IT AS WELL. THANK YOU, JEFF FOR REMINDING US OF THAT. >> Mayor Guajardo: THAT'S A GOOD POINT. COUNCILWOMAN VAUGHN. >> Vaughn: I AM NOT AGAINST THE POOL. I'M FOR THE POOL. IT'S JUST A BAD LOOK RIGHT NOW FOR THE PUBLIC. I UNDERSTAND WHAT YOU'RE SAYING BECAUSE WE HAVE TO DO IT. I GET THAT AND THEY DESERVE TO GET A POOL OVER THERE. I JUST THINK WE SHOULDN'T START ANY SOONER THAN WE HAVE TO. WE'VE GOT TO TRY AND GET THROUGH THE DROUGHT SO THE PUBLIC UNDERSTANDS WE'RE GOING TO BUILD IT BUT IT'S GOING TO TAKE A LITTLE BIT OF TIME. IF YOU BUILD IT AND WE'RE IN A DROUGHT, I WOULDN'T THINK THAT WOULD BE GOOD FOR THE FOUNDATION ANYWAY. NONE OF OURS RIGHT NOW -- I MEAN, THERE'S A CONCERN THERE FOR A LOT OF OWNERS. OUR FOUNDATIONS AND EVERYTHING. I JUST HOPE WE KIND OF TAKE OUR TIME, MR. ZANONI. >> Zanoni: IT'S GOING TO TAKE ABOUT 18 MONTHS TO BUILD IT ANYWAY. >> Vaughn: WHEN DO YOU THINK THEY'RE GOING TO START? >> Zanoni: TWO MONTHS FROM NOW PROBABLY, JEFF, THERE WILL BE A NOTICE TO PROCEED. >> Edmonds: IT'S USUALLY A COUPLE OF MONTHS. >> Zanoni: THERE HAS TO BE SITE PREPARATION, MATERIALS ORDERED. IT'S GOING TO BE SOME TIME. >> Vaughn: THANK YOU. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: I WAS THINKING ABOUT LLOYD NEIL. PROMISE MADE, PROMISE KEPT. I WAS ON THE COUNCIL WHEN WE WERE PART OF THAT FOUR-PARTY AGREEMENT. SO IT WAS A PROMISE MADE TO THE NEIGHBORHOOD AND I INTEND TO VOTE TO KEEP THAT PROMISE FOR THE NEIGHBORHOOD. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. I AGREE. IT'S A PROMISE MADE. IT SHOULD BE A PROMISE KEPT. THIS IS SOMETHING THAT THIS NEIGHBORHOOD HAS WAITED FOR FOR A LONG TIME. I'LL ADMIT I'M A LITTLE FRUSTRATED -- AND IT'S NOT BECAUSE WE'RE ABOUT 12 HOURS IN NOW ALMOST. I'M JUST A LITTLE FRUSTRATED AT HOW LONG IT TOOK TO EXECUTE ON THE PROMISE BECAUSE NOW WE'RE IN THIS DROUGHT CONDITION. YOU KNOW, I APPRECIATE YOUR SENTIMENTS PETER. AND I ECHO WHAT COUNCILWOMAN VAUGHN HAS SAID. I SUPPORT WHOLEHEARTEDLY THE PROJECT BUT I RECOGNIZE WITH REAL SINCERITY THE CONDITIONS WE'RE IN WITH WATER. WE HAVE JUST SPOKEN ABOUT IT FOR PROBABLY THE LAST THREE HOURS. I WOULD LOVE TO HEAR SOME OF THE METRICS ON THE VOLUME IMPACT THIS THIS IS GOING TO HAVE. I KNOW THAT IT'S GOING TO BE SOME TIMELINE OUT, SO I APPRECIATE THAT YOU DISCUSSED THAT AND HOPEFULLY ALL OF THESE EFFORTS THAT WE JUST DELIBERATED FOR THE LAST THREE HOURS WILL MAKE THIS SOMETHING COMFORTABLY BUT MAYBE YOU CAN SPEAK TO THE VOLUME IMPACT. >> Zanoni: IT'S BETWEEN 110 TO 150,000 GALLONS OF WATER. SO THAT'S ABOUT HALF THE AMOUNT THAT'S USED IN THE BILL WITT AQUATIC CENTER OR ABOUT THE SAME AMOUNT USED AT THE COLLIER POOL. IF WE LET THE POOL EVAPORATE ENTIRELY, IT WOULD TAKE A YEAR TO DO THAT. WE'LL FILL IT UP ONCE AND THE EVAPORATIVE LOSS IS GENERALLY NOT THAT GREAT BECAUSE IT WOULD TAKE A FULL YEAR TO EVAPORATE TO ZERO. BUT WHAT WE WILL DO IS WHEN IT'S NOT IN OPERATION, WE'LL HAVE IT COVERED O AND SO THAT REDUCES THE EVAPORATIVE LOSS. WE ALSO PUT AN AGENTS IN OUR POOLS THAT REDUCES EVAPORATION BY 75%. SO THE EVAPORATION LOSS WON'T BE GREAT. 110,000 GALLONS OF WATER IS WATER BUT IT'S ONE-TIME FILL WITH SLOW EVAPORATION. >> Paxson: I APPRECIATE THAT. THANK YOU FOR ANSWERING THOSE QUESTIONS. >> Zanoni: LET ME ADD, BECAUSE YOU AND I TALKED ABOUT THIS AS WELL. WE RECOMMEND FILLING IT UP WITH WATER TO MAKE SURE WE DON'T UNDERMINE THE ASSET THAT'S BUILT. EVERYBODY KNOWS IF YOU DON'T FILL UP A SWIMMING POOL, YOU CAN HAVE PROBLEMS WITH THE WALL, THE PLASTER. FOR THE RATEPAYER, WE WANT TO MAKE SURE WE DON'T LOSE THE WARRANTY PERIOD. ONCE THE PROJECT IS DONE, WHETHER THERE'S WATER IN IT OR NOT, THE WARRANTY CLOCK BEGINS. EVEN AT BILL WITT WITH HIGH-QUALITY PRODUCTS, WE HAD TO USE THE WARRANTY, AND THAT HELPS THE RATEPAYER. SO WE WANT TO FILL IT UP, COVER IT. IT HELPS THE INVESTMENT STAY SOLID AND ALSO GUARANTEES WARRANTY OF EQUIPMENT. >> [OFF MIC] >> Zanoni: WHAT? >> [OFF MIC] >> Zanoni: THE AGENT -- SERGIO. >> IT'S CALLED C-CLEAR. WE PUT IT IN ALL OUR POOLS. IT HELPS WITH THE EVAPORATION. WE LIKE USING IT. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: IS THERE A REASON WHY WE'RE NOT RENAMING IT T.C. AYERS? I MEAN, IT'S NAMED AFTER SOMEBODY. >> I DON'T RECALL. DO YOU REMEMBER THAT ONE, JEFF? I KNOW IT'S BEEN BROUGHT UP. >> Zanoni: THE CAB HELPED US WITH THE NAME. THEY DID NOT LIKE THE NAME WE HAD SELECTED FOR IT. DID WE HAVE THE HILLCREST POOL? I THINK WE HAD IT CALLED THE HILLCREST POOL BUT THEY SAID IT'S REALLY NOT IN HILLCREST. I THINK WE ALL AGREED TO THE NORTH SIDE POOL BUT IT HASN'T BEEN OFFICIALLY NAMED YET SO WE CAN LOOK AT THE T.C. AYERS. ONE OF THE WHOLE GOALS ON THAT FOUR-PARK PROJECT WE'RE WORKING ON IS TO REMEMBER THE LEADERS THAT LIVED IN THAT COMMUNITY. AND THE WASHINGTON COLES TRAIL HEAD WILL HAVE A LOT OF MONUMENT SIGNS FOR HISTORICAL LEADERS AT THE TIME. TO THAT POINT, RENAMING IT T.C. AYERS COULD MAKE SENSE. WE'LL WORK WITH THE COMMUNITY. >> Hernandez: CAN YOU DO A LITTLE WORK ON THAT SO WE UNDERSTAND WHAT'S HAPPENING THERE? I HATE TO, YOU KNOW, TEAR DOWN A POOL THAT WAS NAMED A LONG TIME AGO SO JUST LEAVE THAT. >> Zanoni: WE'LL WORK WITH REVEREND WILLIAMS AND THE COMMUNITY TO SEE IF THEY ARE AMENABLE TO THAT NAME. >> Hernandez: FAR BE IT FOR ME TO NOT WANT TO HAVE A POOL. I THINK YOU'LL FIND ME VERY SUPPORTIVE OF IT. I'M CONCERNED THAT IT'S GOING TO BE TOO SHALLOW BECAUSE IN THE SUMMERTIME IT HEATS UP PRETTY SIGNIFICANTLY AND, YOU KNOW, IF YOU GO TO -- YOU JUST MENTIONED THE POOL. >> COLLIER. >> Hernandez: COLLIER. IT'S LIKE SWIMMING IN A BATHTUB IN THE SUMMERTIME. IT'S UNCOMFORTABLE. I THINK YOU SHOULD DO SOMETHING TO KEEP THAT WATER A LITTLE COOLER IN THE SUMMERTIME. YOU DEFEAT THE POINT OF TRYING TO COOL OFF IN THE POOL IF YOU'RE SWIMMING IN 80-DEGREE WATER. >> WE'LL TAKE A LOOK AT IT. >> Hernandez: LOVE TO BE AT THE GROUNDBREAKING. LET'S NOT CANCEL IT LIKE WE DID WITH BILL WITT. >> Mayor Guajardo: COUNCILMAN CANTU. >> Zanoni: I MISSED IT. >> Cantu: I THINK THE CITY -- PETER, I THINK YOU GUYS NEED TO DO A BETTER JOB ON LETTING THE PUBLIC KNOW WHAT THIS IS ALL ABOUT, BESIDES JUST DOING A PRESS RELEASE. LIKE THE PUBLIC WENT CRAZY YESTERDAY ON THE FACEBOOK PAGE ABOUT THIS VOTE TODAY. MAYBE DO LIKE A SLIDE SHOW. PEOPLE ARE GOING TO READ THIS. THEY SEE A PICTURE WITH SOME TYPE OF GRAPHIC, MAYBE DO A PRESS RELEASE. THE PUBLIC IS GOING CRAZY ON IT. THEY THINK WE'RE DECIDING THIS RIGHT NOW AND WE'RE NOT. I SUPPORT THIS PROJECT. I JUST THINK IT'S BAD TIMING. VERY BAD TIMING. BUT I'M WITH COUNCILMAN HERNANDEZ ABOUT THE NAME. I THINK THE NAME SHOULD STAY THE SAME. WE TEAR DOWN THAT POOL AND BUILDING ONE BACK SO I THINK THE NAME SHOULD BE THE SAME. IT SOUNDS TO ME LIKE GIL WANTS A POOL UNDER HIS NAME. SO IN LOVE WITH POOLS RIGHT NOW. BUT THAT'S IT. I JUST THINK THE MEDIA DEPARTMENT SHOULD TRY TO DO SOMETHING DIFFERENT THAN JUST DOING A PRESS RELEASE LIKE THIS. WHEN CHANNEL 6 OR CHANNEL 3 DOES A STORY LIKE THAT, I THINK WE NEED TO DO A PRESS RELEASE AND EXPLAIN OURSELVES BETTER BECAUSE WE'RE GETTING IT IN OUR INBOX AND TEXT MESSAGES AND STUFF. >> Zanoni: POINT TAKEN, COUNCILMAN. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU. THANK YOU, MAYOR. I DO ALSO SUPPORT THAT. I THINK THERE NEEDS TO BE LIKE A BACK STORY AS TO HOW WE ARRIVED HERE. BECAUSE IT DIDN'T JUST HAPPEN OVERNIGHT. IT'S HAPPENED OVER 10, 15 YEARS THAT THIS HAS BEEN GOING ON. AGAIN, THANK GOODNESS FOR THE PEOPLE IN MY AREA THAT HAVE COLLIER POOL. I DON'T KNOW WHAT HE'S TALKING ABOUT IT BEING THAT HOT. WE HAVE THAT POOL USED, YOU KNOW, 365 DAYS A YEAR. I MEAN, AND I'M ALSO SO GRATEFUL THAT HE ALSO ADMITTED THAT HE WOULD BE THE LAST PERSON TO SAY HE DOES NOT SUPPORT THIS POOL BECAUSE HE'S CORRECT. WE VOTED -- I WAS ONE OF THEM -- THAT VOTED TO CONTINUE TO FUND THAT PROJECT. AND WE WERE GOING TO THE STAGES, INTO THE DROUGHT STAGES. WE NEED TO HAVE FAITH AND WE NEED TO, YOU KNOW, CONTINUE TO BE SUPPORTIVE AND FILL OUR COMMITMENTS. I'M ALSO GRATEFUL THAT YOU BROUGHT UP THAT BACK IN 2024 THE VOTERS SUPPORTED THIS BACK THEN. SO, AGAIN, JUST ENCOURAGE THAT WE DO A BETTER JOB AT THE BACKSTORY. >> Edmonds: I WOULD ADD TO THAT, THEY PUT MONEY ON BOND '12 FOR SOME OF THE PARK'S MITIGATION ACTIVITY. BECAUSE WE KNEW THAT THIS WAS GOING TO BE A REQUIREMENT. IT'S PART OF THE FEDERAL NEPA PROCESS TO GET THE PERMITTING ON THE BRIDGE. BACK AT THAT TIME THE CITY COUNCIL, THE WAY THAT YOU ARE TODAY WITH WATER, THEY WERE ABOUT THE BRIDGE BACK THEN. THEY WANTED TO DO EVERYTHING TO GET THAT BRIDGE. IT WAS PART OF THE NEPA PROCESS. THEY LOOK AT ALL THE IMPACTS TO HISTORICAL RECREATION, ENVIRONMENTAL WILDLIFE THINGS LIKE THAT. THAT HELPS THEM SELECT THE ROUTE THAT HAS THE LEAST IMPACT. AND ALSO HOW THEY MITIGATE THOSE IMPACTS. >> Campos: YEAH. AND I REALLY DO THINK IT'S GOING TO BE, YOU KNOW, SOMETHING TO DRAW EVEN MORE PEOPLE TO THAT AREA. I KNOW THAT WE'RE TRYING TO DEVELOP -- I FORGET WHAT IT'S CALLED. I KNOW THAT WE'RE MAKING PLANS TO DEVELOP HILLCREST. WE HAVE NOT FORGOTTEN THEM AND, YOU KNOW, I WILL NOT FORGET THEM. SO, AGAIN, I WHOLEHEARTEDLY SUPPORT THIS PROJECT. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: SO, YOU KNOW, I THINK THIS IS DEFINITELY A GOOD NEWS ITEM. AS FAR AS THE MEDIA GOES, I'VE HAD CONVERSATIONS WITH MULTIPLE MEDIA PERSONNEL ABOUT HILLCREST AND THE POOL AND THE REASON BEHIND WHY, THE STORY BEHIND IT. JUST THE FACT THAT WE WENT DOWN THE ROAD AND TALKED TO THEM ORIGINALLY ABOUT SPLASH PADS AND WE NEGOTIATED THE POOL. EVERYTHING WE HAVE DONE RELATED TO THE FOUR POINTS AGREEMENT. BUT THE MEDIA LIKES TO SELL PAPERS OR WHATEVER THEY SELL NOWADAYS. I THINK THEY CHOSE TO IGNORE THAT BECAUSE I JUST HAD A CONVERSATION THE OTHER DAY. I SAT DOWN AND THAT TOPIC CAME UP. THAT'S A SHAME. ON THE OTHER HAND, THE OTHER THING I WANT TO MENTION IS THAT, WHAT DO WE HAVE? 60, 80 CAR WASHES IN OUR CITY NOW? I DON'T KNOW. I CAN'T KEEP UP WITH THEM. I THINK THAT THE WATER THAT WE'RE GOING TO USE FOR THIS POOL IS GOING TO BE PUT TO GOOD USE AND ESPECIALLY SINCE WE'VE GOT 60 OR 80 CAR WASHES OUT THERE. THAT'S ALL I HAVE TO SAY ON THAT. THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILMAN. OKAY. PLEASE SUBMIT YOUR VOTE. IS HE WANTING TO VOTE? THERE HE IS. OKAY. THE MOTION CARRIES. ITEM NO. 19 IS AN ORDINANCE AUTHORIZING EXECUTION OF A FIVE-YEAR LEASE AGREEMENT WITH TWO FIVE-YEAR OPTIONS WITH BIG JOHNSON FUEL AND LUBRICANTS, LLC OF CORPUS CHRISTI, TEXAS FOR A MARINE FUEL STATION AT THE COOPERS ALLEY L-HEAD. >> I MAKE A MOTION. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. I'M GOING TO OPEN PUBLIC COMMENT. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE A COMMENT ON ITEM 19? >> I THOUGHT YOU WANTED TO GO HOME. >> Mayor Guajardo: WE'RE CLOSING PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. GREAT PROJECT, GENTLEMEN. THANK YOU. UNANIMOUS. THANK YOU. WE'RE LOOKING FORWARD TO THIS. ITEM NO. 20 IS A RESOLUTION AUTHORIZING THE SECOND AMENDMENT TO THE INTERLOCAL COOPERATION AGREEMENT FOR THE MUSTANG AND NORTH PADRE ISLANDS BEACH PARKING PERMIT SYSTEM BETWEEN THE CITY OF CORPUS CHRISTI, CITY OF PORT ARANSAS, AND NUECES COUNTY. >> MOVE THAT PUPPY. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. WOULD ANYONE LIKE -- I'M SORRY. I'M GOING TO OPEN PUBLIC COMMENT. WOULD ANYONE LIKE TO MAKE A COMMENT ON ITEM NO. 20? THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. NEXT ITEM, 21. >> Barrera: I MOVE FOR APPROVAL. >> SECOND. >> Mayor Guajardo: ITEM 21. ORDINANCE AMENDING SECTIONS 19 HEMISFAIR 1, 19-33, 19-49, AND 38-9 OF THE CORPUS CHRISTI CODE TO AMEND FEE SCHEDULES FOR FOOD ESTABLISHMENTS AND ADOPT A REINSPECTION FEE IN COMPLIANCE WITH SENATE BILL 1008. WE HAVE A MOTION AND A SECOND. COUNCILWOMAN PAXSON. >> Paxson: DO WE HAVE THE GENTLEMAN HERE REPRESENTING THE RESTAURANT? >> Mayor Guajardo: MR. DESHIELDS, COME ON DOWN . >> YES, MA'AM? >> Paxson: THANK YOU VERY MUCH FOR BEING HERE THE ENTIRE DAY. THANK YOU FOR COMING EARLIER TO SPEAK. THIS WAS AN ITEM THAT WAS VERY IMPORTANT TO ME, OF COURSE, AND TO ENSURE WE INCORPORATED THE FEELINGS OF HOW THIS WOULD IMPACT OUR LOCAL BUSINESSES. AND SO I APPRECIATE THAT YOU CAME UP TO OFFER YOUR SUPPORT AND TO INFORM US THAT OUR STAFF WAS ABLE TO WORK COLLABORATIVELY WITH YOU TO REDESIGN THEIR RECOMMENDATION TO US. MY QUESTION ON THE PROPOSED FEE SCHEDULES, THEY DO LOOK MUCH BETTER ABSOLUTELY. MY QUESTION TO YOU: THE INITIAL AND REINSPECTION FEES HAVE CHANGED QUITE A BIT UNDER THIS SCHEMATIC. DID YOU GUYS HAVE A DISCUSSION OR HAVE AN OPINION? >> YES. WE MET THE FIRST TIME AND IT WAS THE ORIGINAL $773, WHICH WOULD HAVE PRETTY MUCH AFFECTED EVERY RESTAURANT ACROSS THE COASTAL BEND. BECAUSE THE WAY IT WAS STRUCTURED -- CURRENTLY THE WAY IT'S STRUCTURED IS IT'S BY EMPLOYEES. I DON'T HAVE THE NOTES IN FRONT OF ME. BUT -- >> [OFF MIC] >> SO THE ORIGINAL -- IT WAS KIND OF A MEET IN THE MIDDLE KIND OF DEAL. WE KNOW THE HEALTH DEPARTMENT STILL NEEDS TO OPERATE AND TO DO A GOOD JOB HELPING US TO SERVE THE PUBLIC SAFELY. BECAUSE WE ARE -- THE PUBLIC'S HEALTH IS IN OUR HANDS AS RESTAURATEURS. IT WAS KIND OF THE MIDDLE GROUND, IF YOU WILL. INSTEAD OF INCREASING THE HEALTH PERMIT FEES, YOU KNOW, 100% -- I THINK NOW IT'S AVERAGING ABOUT 9% FOR THE ANNUAL INSPECTION FEES. AND THEN THESE OTHER FEES ARE -- LIKE THE REINSPECTION FEE, IT'S KIND OF ONE OF THOSE THINGS WHERE A NECESSARY EVIL. IF THE RESTAURANT IS NOT PASSING THEIR INSPECTIONS AND THE HEALTH DEPARTMENT IS SPENDING THEIR TIME TO COME BACK AND REINSPECT THOSE RESTAURANTS, YOU KNOW, IT'S NOT A WASTE OF THEIR TIME AND IT'S BEING REDONE AGAIN AND AGAIN, THAT'S NOT FAIR TO THE OTHER RESTAURANTS. DO YOU KNOW WHAT I MEAN? >> Paxson: IT'S ITEMS THAT COULD BE CORRECTED. I APPRECIATE THAT. DO YOU HAVE -- I NOTICE THAT THE FEE SCHEDULE CHANGES WERE KIND OF NOMINAL TO WHAT WAS ALREADY IN PLACE. SO I DO APPRECIATE THAT WE WERE ABLE TO COME UP WITH WHAT I FEEL LIKE IS A MUCH BETTER RECOMMENDATION. SO THERE WAS NO OTHER ISSUES WITH THOSE. YOU FELT LIKE THAT WAS A BETTER ACCURATE REPRESENTATION FOR OUR LOCAL BUSINESSES? >> YES, I DO. SO WHAT HAPPENED WAS WITH SENATE BILL 1008, THE TRA, THE TEXAS RESTAURANT ASSOCIATION, ACTUALLY WROTE THAT BILL AND PRETTY MUCH DID A NUMBER OF THINGS. IT CAPPED FEES. SO $773 IS THE CAP THAT LOCAL CITIES ARE ALLOWED TO CHARGE. AND THEN IT HAD A BUNCH OF OTHER THINGS THAT I DON'T HAVE IT IN FRONT OF ME. BUT PRETTY MUCH ELIMINATING DUPLICATE FEES, FROM PAYING STATE FEES AND CITY FEES. IT'S KIND OF LEVEL ACROSS THE STATE. AND THE ORIGINAL PROPOSAL WAS SALES BASE. WELL, ANY RESTAURANT IN THE CITY IS GOING TO DO OVER $150,000 IN SALES FOR THE YEAR. SO AT THAT POINT YOUR FEE WAS GOING FROM $200 TO $773 AND THAT WAS JUST -- THAT WAS RIDICULOUS. SO DR. KURIAN AND THE STAFF, THEY CAME TO US AND WE MET AND ME, ALONG WITH MYSELF AND THE OTHER BOARD MEMBERS OF OUR LOCAL CHAPTER, THE COASTAL BEND RESTAURANT ASSOCIATION. THERE WAS PROBABLY ABOUT 12 OF US AT THE TABLE. AND WE ALL OVERLOOKED THIS AND CAME TO AGREEMENT. >> Paxson: PERFECT. I APPRECIATE THAT. I DO AGREE. THE BILL WAS CREATED TO SET CAPS TO ALLEVIATE OVERLY BURDENSOME FEES, NOT THAT WE WOULD NEED TO OR BE REQUIRED TO RISE TO THEIR THRESHOLD. >> CORRECT. IT WAS THE CAP. THERE WAS REALLY NO NEED TO RAISE THE FEES BUT IT WAS JUST A CAP. >> Paxson: I AM SO APPRECIATIVE FOR YOUR DILIGENCE AND YOUR WORK WITH THIS. THIS WAS THE KEY TO ME ON THIS ITEM WAS HEARING FROM AND WORKING WITH OUR LOCAL BUSINESSES. SO, I APPLAUD YOUR PARTICIPATION AND THANK YOU FOR BEING HERE AS THAT LIAISON. >> THANK YOU. I JUST WANT TO ALSO COMMENT THAT OTHER CITIES ARE NOW LOOKING AT WHAT WE HAVE PRESENTED AND WORKED ON. BECAUSE SINCE THIS SB1008, OTHER CITIES ARE KIND OF HAVING THE SAME ISSUES SO NOW THEY'RE LOOKING AT US AS KIND OF A MODEL. >> Paxson: THAT'S WONDERFUL TO HEAR. AND I BELIEVE THAT IN THE BILL THERE'S ACTUALLY SOME PARAMETERS TO PREVENT SYSTEM WORKAROUNDS WHERE YOU COULD BE PROLONGED WAITING FOR PERMITS. PROLONGED WAITING FOR REINSPECTIONS, THOSE TYPES OF THINGS. SO THIS ALIGNS WITH THAT FOR YOU GUYS? >> YES. >> Paxson: THANK YOU VERY MUCH FOR THAT. >> I'M NOT AN EXPERT ON THE BILL, I JUST KNOW THE KEY PARTS. I'M NOT A LEGAL PERSON. >> Mayor Guajardo: THANK YOU, MR. DESHIELDS FOR BEING HERE. YOU'RE GOOD. >> I JUST WANTED TO PUBLICLY THANK THE RESTAURANT ASSOCIATION. THEY TOOK ALL OUR PHONE CALLS. MET WITH US AS MANY TIMES AS WE REQUESTED. THIS WAS TRULY A COLLABORATIVE APPROACH AND JUST THE FACT THAT HE SPENT THE WHOLE DAY HERE SUPPORTING THIS. >> Mayor Guajardo: I KNOW, MR. DESHIELDS. WE NOTICED YOU. DR. KURIAN, THANK YOU FOR YOU AND YOUR STAFF FOR WORKING. THAT'S THE KEY, YOU KNOW, IS THE COMMUNICATION BETWEEN, YOU KNOW, ALL OF THESE DIFFERENT ENTITIES AND WORKING TOGETHER AND MOVING FORWARD FOR A GOOD POLICY. THANK YOU FOR TAKING THAT TIME. WE'RE GOING TO MOVE ON, IN OUR SPIRIT OF TIME. COUNCILMAN CANTU IS NOT THERE. COUNCILMAN HERNANDEZ. > >> Hernandez: THANK YOU, MAYOR. DOCTOR, IF YOU COULD COME UP AND TALK ABOUT THIS. DURING YOUR BRIEFING FOR MYSELF AND I BELIEVE IT WAS ME AND COUNCILMEMBER VAUGHN, WE HAD POINTED OUT THAT THERE WAS, I THINK, A SOMEWHAT D DISCRIMINATORY PRICING FOR PRIVATE SCHOOLS VERSUS PUBLIC SCHOOLS IN TERMS OF THE PER INSPECTION FEE. YOU HAVE PER INSPECTION FOR PUBLIC SCHOOLS AT $150 AND FOR PRIVATE SCHOOLS YOU HAVE $258. NOW, I UNDERSTAND THAT THE PUBLIC SCHOOLS GET TWO INSPECTIONS, BUT, YOU KNOW, I'M TALKING ABOUT COST PER INSPECTION. AND SO I WILL BE MAKING A MOTION TO AMEND TO HAVE THOSE E EQUAL THAT SCHOOL INSPECTIONS SHOULD BE 100% -- SHOULD BE $150 PER INSPECTION FOR ALL SCHOOLS. >> AS OPPOSED TO WHAT? >> Hernandez: $258 FOR PRIVATE SCHOOLS. AND $150 FOR PUBLIC SCHOOLS. >> Mayor Guarjardo: SO YOU'RE AMENDING IT -- >> Hernandez: ALL ACROSS THE BOARD. $150 PER INSPECTION. >> Mayor Guarjardo: AND DOCTOR, WHAT WAS THE REASON FOR THE DIFFERENCE? >> SO THAT'S THE WAY STATE ALIGNS CHARGES FOR SCHOOLS, ALL PUBLIC SCHOOLS ARE NOT REQUIRED TO HAVE PERMIT, THEY'RE REQUIRED TO HAVE TWO INSPECTIONS PER CALENDAR YEAR, AND EACH INSPECTION, LIKE COUNCILMAN SAID IS $150. FOR PRIVATE SCHOOLS, WE DON'T CHARGE THEM AN INSPECTION FEE, THEY GET A PERMIT FEE, AND THAT PERMIT FEE IS $258. THAT'S EXACTLY HOW STATE CHARGES, AND -- >> Hernandez: NOW, THE STATE IS UP TO 258. >> CORRECT. >> Hernandez: SO IT DOESN'T HAV TO BE 258. SO I WANT TO HAVE SOME, YOU KNOW, EQUAL COST ASSOCIATED WITH IT BECAUSE THE COST TO SEND THE INSPECTOR TO A PUBLIC SCHOOL IS THE SAME COST TO SEND THEM TO A PRIVATE SCHOOL. >> WHY NOT CHARGE THEM THE CHARGER AMOUNT. >> Hernandez: YOU CAN'T CHARGE PUBLIC SCHOOLS . >> WE CAN EXCEED THE STATE CHARGES, IT'S $150 PER INSPECTIONS, SO WE HAVE TO BE -- IT'S UP TO $150 OR UP TO $258. >> GOTCHA. >> Mayor Guarjardo: OKAY. COUNCILMAN CANTU. >> Cantu: REAL QUICK. NO PUSH BACK FROM NO RESTAURANT BUSINESS O OWNERS, ANYTHING LIKE THAT? YOU GUYS ARE GOOD WITH EVERYTHING? >> SO LIKE I SAID, IT'S JUST WE MET WITH 12 OF US, LIKE, OUR BOARD, AND OTHER RESTAURANT MEMBERS THAT AREN'T EVEN ON OU OUR -- PART OF OUR ASSOCIATION. AND THIS IS WHAT WE KIND OF CAME UP WITH. SO I'M SURE YOU'RE OPPOSING OPERATIONS. >> Cantu: WHAT RESTAURANT? >> THE BARBECUE MAN. >> Cantu: YEAH. I WAS LIKE I KNOW THIS GUY FROM SOMEWHERE. SOUNDS GOOD. THANK YOU. >> Mayor Guarjardo: COUNCILMEMBE R ROY. >> I WANTED TO APPLAUD YOU NUMBER OF 1 FOR HANGING IN THERE AND STAYING THIS LATE AND HAVING A GOOD ATTITUDE AND THE FACT THAT YOU SAID EARLIER THAT YOU WERE ORIGINALLY AGAINST THE FEES AND THEN WHEN YOU SAT DOWN AND TOOK A LOOK WITH YOUR BOARD AND EVERYTHING, THEN YOU G GUYS CAME TOGETHER. WITH THAT BEING SAID, CAN YOU COME FORWARD TO THE DIAS, CAN YOU COME FORWARD TO ME FOR JUST A SECOND? I WANTED TO GIVE YOU -- BECAUSE YOU NEED SOMETHING BEFORE YOU LEAVE HERE, I WANTED TO GIVE YOU MY LAPEL PIN BECAUSE YOU DESERVE IT, ALL RIGHT, MAN, YOU TAKE THIS AND ENJOY YOUR DAY, I KNOW YOU'RE SPENDING THIS TIME AWAY FROM YOUR FAMILY, BUT I APPRECIATE YOU. >> Mayor Guarjardo: COUNCILMEMBE R PAXSON. >> Paxson: THAT WAS VERY CONSIDERATE. WE NEED TO GET YOU ANOTHER ONE. DOCTOR, I DID WANT TO THANK YOU BECAUSE THIS IS JUST A MASSIVELY DIFFERENT RECOMMENDATION THAN CAME BEFORE US LAST TIME, AND I VERY MUCH APPRECIATE YOURS AND YOUR TEAM'S RECE RECEPTIVENESS TO HEARING THAT FEEDBACK FROM THE PREVIOUS TIME. IT CERTAINLY MAKES OUR JOB EASIER, YOU KNOW, TO FEEL LIKE WE -- LIKE YOU GUYS ARE HELPING US BRIDGE THAT GAP SUC SUCCESSFULLY, AND SO THANK YOU VERY MUCH, THAT DOESN'T GO UNNO UNNOTICED, SO I APPRECIATE YOUR EFFORT. I WAS ALSO C CURIOUS ON THIS WHOLE TOPIC, SOMETHING THAT CAME UP TO ME, PETER, IN TALKING TO THE BUSINESS OWNERS, AT THE FIRST ITERATION OF THIS RECOMMENDATION, THE THOUGHT CAME UP, YOU KNOW, THERE WAS A GAP ARTICULATED IN THE SERVICE AND THE REVENUE AND THAT MOST OF OUR FOOD ESTABLISHMENTS HERE AND WHAT THEY DO COULD BE CONSIDERED TOURIST AMENITIES. WE'RE A TOURIST TOWN, FROM ONE SIDE TO THE OTHER. AND SO THAT MAY BE SOMETHING TO EXPLORE TO OFFSET THAT GAP IS THAT FUNDING. I THOUGHT IT WAS A GREAT IDEA, KIND OF LOOKED AT IT THROUGHOUT THE PARAMETERS OF THINGS TO HELP BRIDGE THAT GAP RATHER THAN DISPLACING A LOT OF THAT COST BURDEN ON THE OPERATORS, THE SMALL BUSINESS OWNERS. >> Zanoni: OKAY. WE CAN LOOK AT THAT IF WE HAVEN'T ALREADY. >> WE HAVEN'T LOOKED AT THAT THAT WAY, BUT CERTAINLY WE CAN EXPLORE THAT OPTION. >> Paxson: I THINK THAT WOULD B MY PREFERENCE OVER INCREASING RATES ON LOCAL BUSINESSES. BUT THANK YOU. >> Zanoni: OKAY. THANK YOU. >> Mayor Guarjardo: COUNCILMEMBE R VAUGHN, AND THEN WE'LL VOTE. >> Vaughn: MR. SHIELDS. I WAS JUST CURIOUS, WHAT'S YOUR DAD THINK ABOUT RAISING THESE FE FEES? >> HE SAID -- HE TOLD ME TO HANDLE IT. >> Vaughn: HE TOLD ME TO HANDLE IT. I DON'T KNOW IF YOU KNOW THIS, THEY OWN THE BARBECUE MAN, SOME OF THE BEST BARBECUE IN TOWN. SO YOU'RE GOOD WITH T THIS HUH? >> YEAH. IT'S THE BEGINNING OF A GOOD RELATIONSHIP WITH OUR THE HEALTH DEPARTMENT AND RESTAURANT COMMUNITY. >> Vaughn: OKAY. I'LL CALL YOU IF YOU GET ANY PUSHBACK. OKAY. >> YEAH. I'M HEAR SO I'M SURE I'LL HEAR SOMETHING TOMORROW. >> Vaughn: OKAY. >> Mayor Guarjardo: DID WE DO PUBLIC COMMENT? >> Vaughn: NO. HE WAS CALLED UP. >> WE DIDN'T CALL FOR PUBLIC COMMENT. >> Mayor Guarjardo: WOULD ANYON LIKE TO MAKE COMMENT ON ITEM 21? OKAY. WE'LL CLOSE PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. >> OKAY. WE'LL VOTE ON THE AMENDMENT FIRST, THERE'S AN AMENDMENT ON THE FLOOR, AND IT WAS TO INCREASE THE -- WELL, TO SET THE FEE FOR $150 FOR ANY SCHOOL. >> Mayor Guarjardo: ACROSS THE BOARD. >> YES, MA'AM. >> Mayor Guarjardo: PLEASE SUBMIT YOUR VOTE. >> WE'LL DO A VOICE V VOTE. >> Mayor Guarjardo: ALL IN FAVO SAY AYE. ANY OPPOSED SAY NO? MOTION CARRIES. >> OKAY. AND THEN PASS THE MOTION AS AMENDED. >> Mayor Guarjardo: OKAY. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. ALL RIGHT. SO ITEM 22. THE MOTION TO DISCUSS AND ACT ON EXPANDING THE PURPOSE AND ACTIONS OF THE CONVERSATION PLAN COMMITTEE TO INCLUDE EVALUATION AND RECOMMENDATIONS FOR STANDARDS PERTAINING TO TECHNOLOGY AND MEASURES THAT INCREASE FRESH WATER CONSERVATION EFFORTS FOR OUR VARIOUS RATE CATEGORY USERS. ALSO TO WORK WITH STAFF TO ASSESS SYSTEM WATER LOSS ACTUAL AMOUNTS AND DEVELOP A PLAN TO REDUCE OR ELIMINATE THAT LOSS. ALSO, TO WORK WITH STAFF TO DEVELOP RECOMMENDATIONS FOR DROUGHT OR WATER SUPPLY ISSUE RELATED CURTAILMENT MEASURES APPROPRIATE FOR THE VARIOUS RATE CATEGORY USERS DURING RESTRICTED PERIODS AS REQUESTED BY COUNCIL councilmembers KAILYN PAXSON, ERIC CANTU, AND GIL HERNANDEZ. GO AHEAD. >> THANK YOU, MAYOR. NICK, WE SPOKE ABOUT THIS BRIEFLY. AND IT WAS SOMETHING BORN OF PREVIOUS DISCUSSIONS ON COUNCIL WHERE WE DIDN'T HAVE AN AGENDIZED ITEM TO DISCUSS IT, THIS WAS THE RECOMMENDATION IF WE WANTED TO EVALUATE AND POSSIBLY EXPAND THE CHARTER OF THAT COMMITTEE, THEN IT WOULD NEED TO COME IN THIS FORM, AND I APPRECIATE YOUR FE FEEDBACK. I TALKED TO YOU ABOUT IT AFTER SUBMITTING THE ITEM, AND SO THIS IS AS MUCH TO COUNCIL, REALLY, AS I RECOGNIZE THAT WE WANT TO GET THE CONSERVATION PLAN FINISHED AND COMPLETED AND I KNOW THAT YOU GUYS ARE WO WORKING THROUGH THAT, BUT I DON'T FEEL THAT THIS REQUEST JEOPARDIZES THAT. I THINK THAT ONE OF TWO THINGS COULD HAPPEN. THIS WILL ENANSWER THAT PLAN AND POTENTIALLY ONCE THE PLAN IS COMPLETE, THEN THE COMMITTEE CAN CONTINUE TO TAKE THE PROGRESS THAT THEY'VE MADE THROUGH THE PROCESS OF THE PLAN AND LOOK AT THESE ITEMS, I THINK FOR THE FIRST ONE, OF COURSE, YOU KNOW, LOOKING AT OPPORTUNITIES WHERE WATER CAN BE EVEN FURTHER USED MORE EFFICIENTLY. THE SECOND ITEM -- I KNOW THAT . >> [ OFF MIC ] >> Paxson: I CAN REPEAT IT, OR YOU CAN WATCH IT AGAIN. NO. [ LAUGHTER ] >> Paxson: THE SECOND ITEM -- I KNOW IN EVERY SYSTEM, EVEN IN A PERFECT ONE, REGULAR LOSS CAN B OCCURRED. FOR THAT ITEM, IT'S NOT A JUDGMENT, IT'S TO SAY LET'S LOOK AT THAT, AND IF WE ALREADY KNOW WHERE WE MAY BE EXPERIENCING SYSTEM LOSS, LET'S PRIORITIZE IT IN A PLAN THAT THE COUNCIL CAN GET BEHIND IT AND SUPPORT C CCW. I KNOW YOU GUYS ARE DOING SO MUCH ALREADY, BUT WHILE WE HAVE A COMMITTEE TO LOOK AT THAT, I THOUGHT THAT WOULD BE A GOOD USE OF THEIR TIME, AND THEN LASTLY I THINK THE COLLABORATION BETWEEN THE COMMUNITY AND CITY STAFF TO LOOK AT WHAT A VARIETY OF CURTAILMENT OPTIONS I THINK SHOULD THAT EVER COME INTO P PLAY, ONE, PROVIDES US THE OPERATOR AND THE USER AN EXPERIENCE AND PERSPECTIVE INTO, I THINK, GIVES US SOMETHING TO COMMUNICATE TO THE COMMUNITY THAT WE DID -- WE DID KEEP IN MIND WHAT THAT WOULD TRANSLATE THROUGH TO THEM AND FIND WAYS THAT ARE BOTH FEASIBLE AND VERY EFFECTIVE ON THE SYSTEM IF WE WENT IN THAT DIRECTION. SO THAT'S -- I TRIED NOT TO BE LONG-WINDED, THAT'S THE ITEM. MY UNDERSTANDING, BASICALLY, IS THAT WE HAD TO TAKE ACTION IF WE WANTED THE COMMITTEE TO DO MORE THAN JUST THE PLAN. >> YEAH. SO COUNCILWOMAN, ONE THING I CAN SAY IS WE HAD A VERY PRODUCTIVE COUNCIL COMMITTEE WATER MEETING ON FRIDAY, AND I POINTBLANK ASKED THE COMMITTEE, I SAID ARE WE ALL IN AGREEMENT THAT OUR CRITICAL ASSIGNMENT IS TO GET THIS WATER CONSERVATION PLAN DONE, AND I DID REMIND THEM THAT AS TWDB LOOKS AT AND GRADES APPLICATIONS FOR GRANTS AND FOR ANY APPLICATIONS THAT THEY'LL WANT TO MAKE SURE WE HAVE THAT PLAN IN AND SUBMIT IT. THE COMMITTEE ALL AGR AGREED, IN WHOLE, THAT THAT IS ABSOLUTELY THE CHARGE, AND THAT THEY'RE GOING TO MOVE FORWARD ON THAT. >> Paxson: AND I APPRECIATE YOU ASKING THAT. I KNOW WE TALKED ABOUT THAT AS WELL. I WAS WATCHING THAT ME MEETING AS WELL, SO I APPRECIATE THAT YOU DID ASK THAT, AND I'M GLAD THAT THEY WANT TO MAKE THAT -- CONTINUE TO MAKE THAT THEIR TOP PRIORITY, BUT I'VE SPOKEN TO A FEW MEMBERS, AND I THINK THERE WOULD BE SOME INTEREST IN CONTINUING AND FACILITATING A BR BROADER SCOPE, AND MAYBE ONCE THAT PLAN IS COMPLETE, THERE'S THE OFFER IF -- TO EXCHANGE MEMBERS IF NECESSARY, BUT I STILL THINK THAT IT'S A GOOD USE OF THAT COMMITTEE. >> YEAH. YOU AND I TALKED BRIEFLY ABOUT HOW THAT SPECIFIC COMMITTEE WAS ALL OF YOU NOMINATE THOSE INDIVIDUALS FOR THAT TASK, AND IF THEY WERE ASSIGNED SOMETHING ELSE, MAYBE THEY -- IT MIGHT BE DIFFERENT COMMITTEE MEMBERS. ANOTHER THING I DO WANT TO JUST REMIND EVERYONE THAT CURTAILMENT ACTUALLY HAS TO BE DONE ACROSS THE BOARD, ACROSS ALL CLASSES, AND WE HAVE NO CHOICE ON THAT. THAT'S THE LAW. >> Paxson: I UNDERSTAND. JUST THE DIFFERENT MEASURES. SO THAT'S -- YEAH. >> Mayor Guarjardo: COUNCILWOMA CAMPOS. >> Campos: OKAY. THANK YOU. YES, I WANTED TO MAKE SURE THAT WE, AS -- YOU KNOW, BEING ALL CONCERNED ABOUT OUR WATER CONSUMPTION THAT WE UTILIZE THIS CONSERVATION COMMITTEE. I REALIZE AS COUNCILMEMBER PAXSON, THAT THEY ARE ASSIGNED, YOU KNOW, THIS ASS ASSIGNMENT, WHICH IS TO MAKE SURE THAT WE COMPLETE THE CONSERVATION PLAN, BUT IN ADDITION, I ALSO SUPPORT THAT WE HAVE A GOOD GROUP OF INDIV INDIVIDUALS IN THAT COMMITTEE, AND I WOULD LIKE TO MAKE SURE THAT WE USE THEM AND THAT WE, YOU KNOW, TAKE SOME OF THEIR SUGGESTIONS. I KNOW I'VE RECEIVED AT LEAST THREE EMAILS OR TTEXT MESSAGES ENCO ENCOURAGING ME TO SEE WHAT I CAN DO TO ENCOURAGE OUR CITY MANAGER, OR I DON'T KNOW IF IT'S US THAT DECIDE THAT WE CAN GIVE THEM MORE DUTIES, RESPONSIBILITIES, WHO WOULD DECIDE THAT, P PETER? >> Zanoni: THE COMMITTEE YOU'RE TALKING ABOUT; RIGHT? >> Campos: RIGHT. >> Zanoni: EXCUSE ME. IT WAS THE -- I MEAN, THE COUNCIL AND -- THE COUNCIL WITH MYSELF HELPED TO FORM THE COMMITTEE AND THE CHA CHARGE, SO I WOULD SAY THE COUNCIL AND THE CITY MANAGER. BUT AS NICK SAID, I DON'T KNOW IF HE ARTICULATED IT CLEARLY ENOUGH, WHICH IS THAT THE COMMITTEE SAID WE JUST WANT TO FOCUS ON THE CONSERVATION PLAN TO START, SO WE HAVE TO HAVE A CONVERSATION WITH THE COMMITTEE TO SAY DO YOU WANT TO TAKE ON MORE RESPONSIBILITY. I WOULD SAY OF THE THREE ITEMS ON HERE, ONE, THE ISSUE OF CURTAILMENT REALLY NEEDS TO BE DEVELOPED BY US AND THE STATE. WE SHOULDN'T -- THE RESIDENTS COULD GO DOWN A PATH THAT WE COULDN'T EVEN DO, SO IT MAY NOT BE A GOOD USE OF THEIR TIME. THE ISSUE OF WATER LOSS OUR PIPES, WE HAVE ONE OF THE LOWEST IN THE STATES, WHEN HE SAYS TALKS ABOUT THAT, WE ADMIT LOSS SOMEWHERE, BUT I THINK A BETTER EXERCISE WOULD BE HIRING A CONSULTANT THAT KNOW HOW TO SOLVE WATER LOSS PROBLEMS, I DON'T KNOW IF THE PERSONS ON COMMITTEE KNOW HOW TO DO THAT. AND THEN THE THIRD ONE, USING TECHNOLOGY, THAT MAY BE A GOOD ONE THAT WOULD COMMITTEE COULD LOOK INTO AS TIME COMMITS. SO WE JUST -- THE COMMITTEE WAS SELECTED WITH A PARTICULAR FOCUS IN MIND. WE DON'T WANT TO OVERTAX THEM, OVERBURDEN THEM, YOU KNOW, WITH MORE WO WORK, BUT SOME OF THE STUFF HERE, I WOULD RECOMMEND NOT EVEN HAVING THEM DO BECAUSE IT DOESN'T SEEM TO FIT WITH A GROUP OF CITIZENS THAT ARE HELPING US ON THINGS THEY KNOW HOW TO DO, WHICH IS HOW DO ICON SERVE WATER AT HOME OR IN MY BUSINESS OR HOW COULD THE INDUSTRY CONSERVE WATER, BUT I'M NOT SURE THEY KNOW HOW TO FIX BROKEN PIPES. >> Campos: BUT OF THE COMMITTEE THEMSELVES, AT LEAST THREE REACHED OUT TO ME AND SAID THEY WANTED TO DO MORE, THEN IT WOUL BE DECIDED BY US? I MEAN, I UNDERSTAND THE CONSERVATION IS THE NUMBER 1 GOAL AND THAT NEEDS TO BE COMPLETED, BUT I WOULD ALSO LIKE TO BE ABLE TO OPEN THAT CONVERSATION AND SAY, OKAY, WELL NOW WE'VE COMPLETED THIS GOAL, A AND, YOU KNOW, THEY'VE EXPRESSED, YOU KNOW, CONCERNS ON TRYING TO SOLVE OUR, YOU KNOW, OUR OTHER ISSUES, WHICH IS OUR -- OUR CLASS -- YOU KNOW, WATER RATE CLASS, I DON'T KNOW IF THAT'LL BE PART OF THE CONVERSATION, BUT I KNOW IT SHOULD BE. >> Zanoni: WE'RE GOING TO BE TALKING ABOUT THAT BEFORE THE COMMITTEE EVEN HAS A CHANCE TO LOOK AT THAT BECAUSE WE'LL BE DOING THAT IN MARCH AS WE GET THE LAST COUNCIL MEETING OF THE MONTH WILL BE ON THE HARBOR D DESAL PROPOSAL, SO MARCH IS BRINGING FORWARD STATE REQUIREMENTS, WHAT DOES IT MEAN TO BE IN CURTAILMENT, SO THAT ONE WILL BE DONE BY THE TIME THEY GET TO THAT. AND THEN THE WATER LOSS THING, AGAIN, THE -- I'M NOT SURE IF THERE'S ANY PIPE FITTERS OR PLUMBERS ON THIS COMMITTEE, BUT WATER LOSS AND HOW YOU FIX A MASSIVE COMPLEX MUNICIPAL WATER SYSTEM I THINK IS BETTER HANDLED BY PROFESSIONALS, BY FIRMS AND BY NICK'S TE TEAM. >> YEAH. IF I COULD ADD TO THAT. THE COUNCIL HAS SUP SUPPORTED $36 MILLION OF CIP FUNDING ANNUALLY FOR OUR WATER PIPE REPLACEMENT PROGRAM, THAT'S JUST WATER, NOT WASTE WATER. >> Campos: AND I THINK I JUST - NICK, I JUST FORWARDED YOU ONE, HE'S -- RECOMMENDATIONS ON WHAT OTHER CITIES ARE DOING FOR CONSERVATION. I DID THAT DURING THE DAY. I DON'T KNOW IF YOU'VE HAD A CHANCE TO LOOK AT IT. BUT, AGAIN, PEOPLE ARE VERY CONCERNED AND HAVE IDEAS, AND I'M JUST HO HOPING THAT WE -- THAT WE TAKE ADVANTAGE OF THAT, YOU KNOW. >> Zanoni: WE CAN -- YEAH. SORRY COUNCILWOMAN. I DIDN'T MEAN TO INTERRUPT. I MEET WITH A LOT OF FOLKS AND IDEAS, AND MY SCHEDULE IS AVAILABLE, NICK IS AVAILABLE. >> YES. >> Zanoni: I THINK I I -- THAT DOCUMENT IS THICK, YOU KNOW IT BETTER THAN ANYBODY ELSE, THE CONSERVATION PLAN, SO IF WE WAN TO GET A GOOD QUALITY PRODUCT, LET'S HAVE THEM FOCUS ON THAT FIRST AND THEN IF TIME PERMITS AND MAYBE SOME OF THE STUFF IS DONE AS PART OF IT, LIKE THE US OF TECHNOLOGIES, BUT I WOULD SUBMIT THAT USING A PANEL THAT' REALLY NOT -- DOESN'T HAVE THE EXPERTISE IN FIXING A MASSIVE MUNICIPAL WATER SYSTEM'S LEAKIN PIPES, I KNOW IF WE'LL GET ME MEANINGFUL FEEDBACK. AND THEN THE LAST THING I WOULD SAY IS 3 OF 1 18 -- YOU KNOW, MAJORITY IS ALWAYS BETTER FOR THIS CONSENSUS, THERE WAS 18 PEOPLE ON THAT COMMITTEE. >> Campos: OKAY. WELL, I HOPE YA'LL ARE LISTENING. SO. >> Zanoni: WE LISTEN ALL THE TIME. YEAH. >> Mayor Guarjardo: THANK YOU, PETER. COUNCILMAN HERNANDEZ. >> Hernandez: DID THEY SKIP OVE. >> Mayor Guarjardo: IT'S 9:46 B THE WAY, JUST IN CASE YOU'RE NO SURE. >> Hernandez: SO I ACTUALLY WAS MORE CONCERNED ABOUT THE WATER LOSS -- WELL, TREATED WATER L LOSS. DO YOU KNOW HOW MUCH WATER WE'RE LOSING ON A IT DAILY BASIS? >> TREATED WATER LOSS? OR -- >> Hernandez: TREATED WATER L LOSS. >> I'M NOT -- COUNC COUNCILMAN, I'M NOT PREPARED TO TALK ABOUT IT TODAY BECAUSE I DON'T KNOW -- I DON'T HAVE ANYTHING TO PRESENT. HADDER HER ALL RIGHT. SO IN THE LAST CONSERVATION PLAN, IT WAS STATED THAT WE WERE LOSING I THINK 7.14% OF TREATED WATER ON A DAILY BASIS. SO IF YOU LOOK AT THAT FROM 100 -- LET'S SAY WE PRODUCE MORE THAN 100 MILLION GALLONS A DAY ON AVERAGE, THAT'S 7 MILLION GALLONS A DAY WE'RE LOSING PLU PLUS; RIGHT. >> ONE THING I CAN SAY ABOUT WATER LOSS IT'S ACTUALLY UNBUILD WATER. >> Hernandez: RIGHT. SO IT COULD BE FIRES. >> CORRECT. >> Hernandez: IT COULD BE, YOU KNOW, LEAKING PIPES, IT COULD B A NUMBER OF . >> UNCOLLECTIBLE WATER BILLS. >> Hernandez: CORRECT. OKAY. SO YOU SHOULD BE ABLE TO DETERMINE WHAT THAT IS IN TERMS OF WHERE WATER GOES IN TERMS OF HOW MANY YOU PRODUCE -- HOW MUCH WATER YOU PRODUCE FROM OWENS STEVENS AND HOW MUCH YOU BILL FOR, AND THERE'S AN EXCESS OF WHAT YOU'RE MISS MISSING; RIGHT. >> CORRECT. >> Hernandez: OKAY. SO WHEN YOU LOOK AT IT FROM THAT PERSPECTIVE, THAT'S KIND OF YOUR LO LOW-HANGING FRUIT ON WHAT YOU'RE TRYING TO DO IN SAVING WATER. YOU KNOW, EVERYTHING ELSE THAT'S IN THAT CONSERVATION PLAN PUTS THE OWNERSHIP ON SOMEONE ELSE NOT THE CITY. >> YEAH. I THINK THE -- AND IF I COULD JUST SPEAK TO IT, I THINK THE BIGGEST IMPACT IS OUR WATER PIPE REPLACEMENT PROGRAM, AND WE'VE BEEN VERY FORTUNATE COUNCIL HAS SUPPORTED THAT FOR A NUMBER OF YEARS, AND I DO HAVE THIS -- I MEAN, JUST LAST YEAR, LAST FISCAL YEAR, WE REPLACED 111,000 FEET OF WATER LINE, THAT WAS LAST YE YEAR. >> Hernandez: OKAY. SO GOING BACK TO UNDERSTANDING WHAT OUR WATER LOSS, SO WE NEED TO BE ABLE TO TRACK TH THAT, BECAUSE I ASK THAT PERIODICALLY, AND I GET THE SAME ANSWER, I'M NOT READY RIGHT NOW, I'M NOT READY TO SPEAK ON IT. AND NOT JUST YOU, YOUR PREDECESSOR AND IN YOUR CONSERVATION PLAN, AND YOU CAN INCLUDE YOUR I IDIQ PROGRAM IN TERMS OF GOALS AND MILESTONES IN ORDER TO TRACK AND SAVE THAT WATER. IT IS -- IT IS PROBABLY THE MOST AND BIGGEST OPPORTUNITY FOR CONSERVATION WE HAVE, AND THERE'S VERY LITTLE DISCUSSED ON IT. AND THEN THAT 7% -- I STARTED THINKING ABOUT, 60% OF OUR TREATED WATER GOES TO INDUSTRY THROUGH TRANSMISSION LIN LINES; CORRECT? OR MOSTLY? OKAY. SO THAT 7% IS ON 40% OF THE SYSTEM. SO WHEN YOU COMPARE US TO, LIKE, SAN ANTONIO THAT THE MAJORITY, YOU KNOW, COMMERCIAL AND RESIDENTIAL, IT'S NOT COMPARING APPLES TO APPLES BECAUSE OUR 7% IS ON 40% OF THE SYSTEM. >> YEAH. I DON'T KNOW IF THAT IS APPLES TO APPLES. >> Hernandez: IT'S NOT. >> AND I WELCOME THE DISCUSSION. >> Hernandez: SO. >> IT'S JUST THIS ITEM, I'M NOT PREPARED TO GO THROUGH ANY DETAIL. >> Hernandez: SO I GET YOU. SO WHAT THIS ITEM IS REQUESTING IS THAT YOU INCLUDE A PLAN TO REDUCE YOUR WATER LOSS IN YOUR CONSERVATION PLAN, AND SPECIFICALLY CALL OUT GOALS AND MILESTONES TO TRY TO REDUCE YOUR WATER LOSS, AND ACTUALLY TRACK IT. BECAUSE WE REALLY -- WE'RE NOT TRACKING IT RIGHT NOW. IS -- DOES ANYBODY IN THIS ROOM KNOW HOW MUCH WATER LOSS WE HAVE RIGHT NOW? >> SO TCQ REQUIRES THE INFRASTRUCTURE LEAK INDEX, THAT'S A TCQ REQUIREMENT, THAT REPLACED THE PREVIOUS WATER LOSS BECAUSE WHAT THE REGULATORY AGENCY DETERMINED IS THAT THAT NUMBER ISN'T APPRO APPROPRIATE, SO THEY MOVED TO WHAT'S CALLED THE INFRASTRUCTURE LEAK INDEX, IT'S CALCULATED ANNUALLY, PROVIDED TO T TCQ AND IT'S OUR ANNUAL DRINKING WATER REPORT OR CONSUMER CONFIDENCE REPORT, THAT IS ONLINE. AND THAT NUMBER -- I MEAN, I'VE GOT SOME -- SOME NUMBERS HERE, BUT I -- YOU ONLINE AND PULL THAT UP FOR YOU. >> Hernandez: OKAY. YOU SEE WHERE I'M G GETTING WITH THIS. WE WANT TO MAKE SURE WE HAVE A PLAN TO REDUCE WATER LOSS IN OUR SYSTEM IN THE WATER CONSERVATION PLAN THAT WE'RE ACCOUNTABLE FOR, THAT WE HAVE GOALS AND MILESTONES FOR. THAT'S ALL WE'RE ASKING TO MAKE IS IN THE CONSERVATION PLAN. >> Zanoni: WE CAN WRITE THAT TONIGHT AND PUT IT IN TOMORROW. >> Hernandez: THAT'S PART OF IT. >> Zanoni: THAT'S A GOOD PLAN. LET'S DO THAT. WE'LL HAVE NICK DO IT TOMORROW. >> YEAH. I MEAN, WE HAVE PIPE REPLACEMENT GOALS. >> Zanoni: WE SHOULD HAVE A G GOAL. >> ABSOLUTELY. >> Mayor Guarjardo: ALL RIGHT. COUNCILMEMBER MOVE ON. >> SOMETIMES WE DON'T LISTEN UP HERE, WHEN IT SAYS WE'RE NOT PREPARED TO DISCUSS, WE WANT TO DISCUSS AT A LATER DATE, GIL. I THINK THE CONSERVATION COMMITTEE NEEDS TO FOCUS ON WHAT WE PUT THEM THERE FOR. AND IF YOU HAD A BUNCH OF PLAINTS, YOU WOULD HAVE THEM, WE NEED TO KEEP IT AS IT IS. AND WHAT WE NEED TO REMEMBER IS THAT STAFF IS OVERWHELMED WITH THE WATER ISSUE, WE KEEP A ADDING ON AND ON AND WE'VE GOT TO STOP DOING THAT BECAUSE THE MOST IMPORTANT ISSUE IS W WATER. >> Zanoni: RIGHT. THANK YOU. >> Mayor Guarjardo: COUNCILMEMBE R PAXSON. >> Paxson: LET ME START FROM GROUND 0. WE HAD THE FIRST COMMITTEE MEETING THAT TRANSPOSED NOT THAT LONG AGO, I THINK IT WAS IN JANUARY? >> YEAH, I THINK IT WAS THE END OF JANUARY. >> Paxson: THE END OF JANUARY. >> YEAH. THAT'S RIGHT. >> Paxson: LAST YEAR, AT THIS TIME OF THE YEAR, WE WERE WO WORKING ON THE DROUGHT CONTINGENCY PLAN AND WE SAW HUG AMOUNTS OF PUBLIC PARTICIPATION SOMETHING THAT I HAD SPOKEN TO PETER AND THE WATER DEPARTMENT, WE HAD A DIFFERENT COO AT THE TIME, WHEN IT COMES TIME TO DO THE CONSERVATION PLAN WE NEEDED TO GET AHEAD OF IT AND WELCOME COMMUNITY PARTICIPATION. NOW WE HAVE THE COMMITTEE. AFTER THE COMMITTEE, THE FEEDBACK WAS THAT WE WERE REALLY ONLY LOOKING AT THE PLAN. MY UNDERSTANDING, BASED ON THE HISTORICS OF THE CONVERSATION FOR THE CONSERVATION PLAN IS THAT WE WERE GOING TO BE ABLE TO LOOK AT SOME REAL MEANINGFUL WAYS TO SAVE WATER THROUGHOUT OUR RATE PAYER SYSTEMS, AND THE FEEDBACK I GOT AFTER THAT FIRST MEETING WAS THAT THE PLAN WAS MUCH MORE ADMINISTRATIVE AND MUCH LESS EVALU EVALUATION, AND SO MY INTEREST IS TRYING TO GET BACK TO THAT ORI ORIGINAL UNDERSTANDING OF THE TASK. SO I -- I DID WATCH THE MEETING. YOU GUYS DID -- YOU GUYS WERE GOING OVER A LOT OF REALLY CREATIVE IDEAS FOR CONSERVATION. SO COULD WE DO THIS INSTEAD. BY THE TIME THE CONSERVATION PLAN IS COMPLETED, AND WE'RE NOW GOING TO BE REVIEWING I IT, I WOULD PRESUME, IT'S GOT TO COME TO THIS BODY. >> CORRECT. >> Paxson: BEFORE WE SUNSET THE COMMITTEE, WE COULD REVISIT A CONVERSATION SIMILAR. >> Zanoni: WE CAN. FOR THE WORK LEFT TO BE DONE, SO THE CURTAILMENT INFORMATION WILL BE DONE AND OUT IN MARCH, AND NICK AND BEST ARE GOING TO WORK ON THE GOALS FOR LOST WATER AND HOW TO GET THERE. >> CORRECT. >> Zanoni: SO THE LAST ONE IS TECHNOLOGY, SO HOW COULD CLASSE USE MORE TECHNOLOGIES, FOR EXAMPLE, AT YOUR HOMES YOU COUL PUT IN A METER THAT'S TELLING YOU IF YOU'RE LOSING WATER. THOSE ARE OUT THERE, WE DON'T ENCOURAGE THEM, BUT THAT'S SOMETHING -- SO, YOU KNOW, THAT'S SOMETHING THE COMMITTEE COULD -- SO I THINK SOME MATERIAL COULD BE COM, LIKE I JUST MENTIONED, YOU COULD BUY A $2 $200-METER, PUT IT ON YOUR METER AND ON YOUR PHONE, AND I HAVE ONE, AND WITH THREE KIDS AND A WIFE IT'S SAVED A LOT OF WATER, BUT THAT'S A TECHNOLOGY WITH AN APP AND A PHONE, SO THEY CAN -- THA THINGS THEY COULD PROBABLY -- THEY COULD LOOK AT AS THEY GO THROUGH THE DEVELOPMENT OF THE PLAN. >> OF THE PLAN, THAT'S CORRECT. AND WE DID TALK ABOUT ITEMS LIKE THAT LAST MEETING. >> Paxson: I KNOW. AND THOSE ARE WONDERFUL. THEY REALLY ARE, BUT THERE ARE SOME OPPORTUNITIES, I THINK, SUCH AS HOW MANY TIMES IS WATER RECIRCULATED IN SOME OF OUR LARGE VOLUME USERS. THE TECHNOLOGY CONTINUES TO ADVANCE, AND SO I KNOW THAT THEY HAVE A DRIVING FORCE TO MAKE THEMSELVES MOST COST-EFFECTIVE AS POSSIBLE. I TOTALLY ACKNOWLEDGE THAT 100%. BUT ARE WE, AS AN ENT ENTITY, STAYING UP TO DATE WITH THAT SO THAT WE CAN ENSURE. >> Zanoni: NO, WE'RE NOT. >> Paxson: SO WE CAN ENSURE THA FUTURE INVESTMENTS ARE UP TO DATE AS POSSIBLE. SO THAT WAS MY INTEREST IN THAT. >> Zanoni: FEEDBACK ON THAT. THE COMMITTEE, THERE MAY BE ONE PERSON ON THERE FROM INDUSTRY. SO 17 OF THE 18 PEOPLE HAVE NO CLUE ABOUT HOW A REFINERY WORKS, AND EVEN WE WHO WORK WITH THEM MONTHLY OR A COUPLE TIMES A MONTH, A LOT OF THAT INFORMATION THEY WON'T TELL US BECAUSE IT'S PROPRIETARY, SO IT WOULD BE HARD FOR US TO SAY HEY FLINT DALES, VALERO, USE THIS TECHNOLOGY SO YOU CAN R RECYCLE WATER MORE. WE DON'T KNOW. THEY WON'T TELL US. PA, PACKS WE DON'T HAVE TO PEEL BACK AND LOOK AT SYSTEMS TO BE FAMILIAR WITH TECHNOLOGY. >> Zanoni: THEY WON'T LET US IN THE PLANT. >> AND ONE THING I DO KNOW, EVERY REFINERY IS DIFFERENT. THEY REFINE DIFFERENT THINGS, DIFFERENT AS ASPECTS. >> Zanoni: THAT COULD BE A SEPARATE -- L LIKE A SEPARATE T IF YOU WILL, TO BE A -- BECAUSE WE MEET WITH -- THERE'S ABOUT 3 IN THAT GROUP, HEY COULD WE MEE WITH YOU TO TALK ABOUT WHAT TECHNOLOGY SPECIFICALLY ARE YOU USING, ARE THERE WAYS THE CITY COULD HELP WITH GRANTS OR STATE FUNDING, FEDERAL FUNDING TO HEL GET THOSE TECHNOLOGIES. I WOULD SAY THE INDUSTRY KNOWS THE MORE THEY RECYCLE THE WATER, THE CHEAPER IT IS, AND SO THEY'RE DOING -- I JUST TALKED TO AN OPERATOR THE OTHER DAY AT FLINT HILLS, AND IT WAS ACTUALLY VALERO, BUT THEY'RE PUTTING IN SYSTEMS RIGHT NOW TO BE ABLE TO USE THEIR WATER MORE BECAUSE IT SAVES MONEY ON PRODUCTION. >> Paxson: THOSE WERE PROVISION BEHIND THIS, SO I WANTED TO MAK SURE WE COULD INCLUDE SOME OF THAT IN THIS EFFORT. >> Zanoni: GOOD TO KNOW. THANK YOU. >> Mayor Guarjardo: AND, PETER, THANK YOU FOR YOUR THOUGHTS ON IT BECAUSE THIS -- AND I GUESS COUPLE OF OTHERS, THIS COMMITTE WAS -- IS PUT TOGETHER FOR A PURPOSE. AND WHEN YOU STICK TO THAT PUMP -- AND I WOULD JUST ENCOURAGE THE THREE SIGNATURE MEMO TEAMS TO MAYBE GET WITH STAFF OR GET WITH PETER BEFORE BECAUSE WE SPENT A WHOLE LOT OF TIME ON THIS, AND THAT CONVERSATION COULD HAVE BEEN HAD WITH YOU OR WITH NICK, HE HAD NO IDEA WHAT WAS GOING TO BE TALKED ABOUT -- MA MA'AM, YOU ALREADY SPOKE TWICE. SO IT'S 9:57. THANK YOU. ARE WE GOING TO DO THE WATER? >> Zanoni: WE'RE RECOMMENDING W DON'T DO THE WATER UPDATE FOR THE SAKE OF TIME. >> Mayor Guarjardo: WITH THAT, NO FURTHER BUSINESS, THIS ME MEETING IS ADJOURNED.