AUGUST 12, 2025. CORPUS CHRISTI CITY COUNCIL >> Mayor Guajardo: GOOD MORNING EVERYONE. I'D LIKE TO CALL THIS MEETING TO ORDER. WELCOME TO CITY HALL AND TO OUR COUNCIL CHAMBERS. THE INVOCATION THIS MORNING WILL BE GIVEN BY PASTOR MARIO CARRETE WITH NEW LIFE CHURCH. >> THANK YOU. LET'S GO AHEAD AND BOW OUR HEADS AND PRAY. HEAVENLY FATHER, WE THANK YOU, LORD FOR TODAY, GOD. FATHER, WE THANK YOU FOR BRINGING EVERYONE HERE IN SAFETY AND YOUR PROTECTION. FATHER, RIGHT NOW IN THE NAME OF JESUS I PRAY, GOD, FOR YOUR NAME TO BE RAISED OVER THE CITY OF CORPUS CHRISTI LIKE A BANNER, FATHER. I PRAY YOUR HEDGE OF PROTECTION AND BLESSING OVER THE SCHOOLS OF THE COASTAL BEND AREA AS THEY OPEN THIS WEEK. I PRAY THAT YOU WOULD CHARGE OUR ANGELS CONCERNING THESE SCHOOLS AND THESE CHILDREN, FATHER. GOD, I PRAY THAT THE CITY OF CORPUS CHRISTI, THE CITY THAT BEARS YOUR NAME, WOULD BE A LIGHTHOUSE FOR THE NATION, GOD. I PRAY, FATHER, AS DECISIONS ARE BEING MADE THAT THE SPIRIT OF UNITY AND TRUTH WHICH SHINE BRIGHTLY IN THIS PLACE. ANY DIVISION THAT'S NOT FROM YOU I PRAY WOULD BE REMOVED. FOR YOUR WORD SAYS A HOUSE DIVIDED CANNOT STAND. SO I PRAY FOR RIGHTEOUSNESS AND JUSTICE TO REIGN AND RULE IN THIS CITY. FATHER, I PRAY FOR YOUR WISDOM, FAVOR, AND HEDGE OF PROTECTION OVER THE MAYOR, CITY COUNCIL MEMBERS, CITY MANAGER, AND EVERYONE INVOLVED IN DECISION-MAKING PROCESSES FOR OUR CITY. I PRAY YOU WOULD BLESS THEM, BLESS THIS CITY, AND BLESS ITS PEOPLE. IN JESUS' NAME WE PRAY, AMEN. >> Mayor Guajardo: THANK YOU, PASTOR. AND OUR PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES AND TO THE TEXAS STATE FLAG WILL BE LED BY FIELD LOMAX. HE IS A FIRST-GRADER AT ST. JAMES EPISCOPAL SCHOOL. >> PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE. [PLEDGE OF ALLEGIANCE] >> PLEASE JOIN ME IN HONORING THE TEXAS FLAG. >> Mayor Guajardo: VERY GOOD. THANK YOU, FIELD. VERY GOOD. 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: BEFORE WE BEGIN TODAY'S HEATING, I WANT TO TAKE A MOMENT TO ADDRESS AN IMPORTANT ISSUE. THIS COUNCIL CHAMBERS IS A PLACE OF PUBLIC BUSINESS, A FORUM OF CIVIC DISCUSSION, DECISION MAKING AND SERVICE TO THE PEOPLE OF CORPUS CHRISTI. IT IS NOT A STAGE FOR PERSONAL ATTACKS DISRUPTIONS OR VULGARITY AND WE WILL NOT TOLERATE VIOLATIONS OF DECORUM. THERE HAVE BEEN INSTANCES OF INDIVIDUALS SHOWING BLATANT DISREGARD FOR THE RULES THAT GOVERN OR PROCEEDINGS. I HAVE ALLOWED SPACE FOR DIFFERS VIEWPOINTS AND I WILL CONTINUE TO WELCOME DISRESPECT DISAGREEMENT BUT I WILL NOT ALLOW THIS COUNCIL OR THE PUBLIC WE SERVE TO BE DISRESPECTED. WE ARE HERE TO DO THE PEOPLE'S WORK. IF YOU WANT 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 REVIEW THE RULES OF DECORUM. THESE RULES WILL BE DISPLAYED ON THE TELEVISION SCREENS ABOVE FOR YOUR VIEWING. [RULES OF DECORUM] >> Mayor Guajardo: PLEASE STATE YOUR NAME AND THE CITY IN WHICH YOU LIVE BEFORE BEGINNING YOUR COMMENT. CITIZEN COMMENTS ARE LIMITED TO THREE MINUTES WHILE NON-RESIDENT COMMENTS ARE LIMITED TO ONE MINUTE. A VISIBLE TIMER POSITIONED NEAR THE CITY SECRETARY'S DESK WILL HELP IN MANAGING THAT ALLOTTED TIME. IF YOU HAVE A PETITION OR RELEVANT INFORMATION YOU WOULD LIKE TO PRESENT TO US, HAND IT TO HER FIRST AND PROCEED WITH YOUR COMMENTS. WITH THAT WE'RE GOING TO MOVE ON TO SECTION F, BOARD AND COMMITTEE APPOINTMENTS. >> City Secretary: WOULD YOU LIKE TO ASK FOR A PUBLIC COMMENT BEFORE WE START ON BOARD AND COMMITTEE APPOINTMENTS? >> Mayor Guajardo: YES. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE ANY COMMENT ON BOARD -- ANY OF THE BOARD OR COMMITTEES THAT WE ARE APPOINTING THIS MORNING? WE'RE GOING TO HAVE MR. RIOS COME DOWN AND SIR YOU'LL COME UP AFTER HIM. >> PLEASE RENOMINATE ME AND ELECT ME TO PARKS AND REC. ADAM RIOS, DISTRICT 5. >> Mayor Guajardo: THANK YOU, MR. RIOS. >> I'D LIKE TO SPEAK ABOUT THE DESALINATION. DAVID CALLING. I LIVE HERE IN CORPUS CHRISTI ON NORTH BEACH. >> City Secretary: HE'S NOT TALKING ABOUT BOARD AND COMMITTEE APPOINTMENTS, MAYOR. >> Mayor Guajardo: I'M SORRY, SIR. THIS IS JUST REGARDING BOARD AND COMMITTEE APPOINTMENTS. >> NEVER MIND. >> [OFF MIC] >> Mayor Guajardo: REBECCA, WOULD YOU HAVE SOMEONE SPEAK WITH HIM IN REGARDS TO THE RULES AND THE TIMES, PLEASE. THEY'LL GET WITH YOU, SIR. THEY'LL SPEAK WITH YOU. >> [OFF MIC] I'M CONFUSED. >> Mayor Guajardo: IF YOU WANT TO MAKE A REMARK ON ANY OF THE BOARD AND COMMITTEE APPOINTMENTS. YES. ANY OF THE BOARD AND -- YES. >> RON GRABAN, DISTRICT 1. I AM HERE TO REPRESENT THE NORTH BEACH COMMUNITY ASSOCIATION AND WE WOULD LIKE TO PUBLICLY ENDORSE ONE OF OUR BOARD MEMBERS, ARIANA JONES, TO THE POSITION OF PARKS AND REC. SHE'S YOUNG. SHE'S ENERGETIC. SHE'S A BUSINESS LADY. HER FAMILY HAS OWNED BUSINESSES FOR YEARS HERE IN CORPUS. SHE'S A RESIDENT OF NORTH BEACH COMMUNITY. SHE IS ALSO ONE OF OUR BOARD MEMBERS. IF I WERE SITTING IN YOUR SEATS, WHICH IS NEVER ON MY TO-DO LIST, BUT IF I WERE, I WOULD BE LOOKING FOR SOMEONE LIKE THIS WHO'S YOUTHFUL, WHO'S ENGAGED, WELL SPOKEN, WELL EDUCATED, AND WE FULLY ENDORSE HER FOR THIS POSITION. >> Mayor Guajardo: THANK YOU, MR. GRABAN. ANYONE ELSE ON BOARD AND COMMITTEE APPOINTMENTS? OKAY. >> City Secretary: THEN WE'LL START WITH THE APPOINTMENTS. THE FIRST BOARD FOR YOUR CONSIDERATION IS THE ARTS AND CULTURAL COMMISSION. THERE ARE THREE VACANCIES. THESE ARE MAYORAL APPOINTMENTS SUBJECT TO CONFIRMATION BY THE FULL COUNCIL. >> Mayor Guajardo: I WOULD LIKE TO RECOMMEND THE REAPPOINTMENTS OF EMILY BARRERA, AMY COOLLY AND ADRIANA PARKER. ENTERTAIN A MOTION. DO WE HAVE A SECOND? ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. >> City Secretary: NEXT IS THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE. THERE ARE SIX VACANCIES. THE CITY MANAGER NOMINATES SIX MEMBERS TO THE COMMITTEE SUBJECT TO THE CONFIRMATION BY THE FULL COUNCIL. MR. ZANONI IS RECOMMENDING THE REAPPOINTMENTS OF PATRICIA >> 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. >> City Secretary: NEXT IS THE COMMITTEE FOR PERSONS WITH DISABILITIES. THERE'S ONE VACANCY. PER COUNCIL PRESIDENT 10.1016B. THE COMMITTEE IS ALLOWED TO MAKE RECOMMENDATIONS FOR BOARD APPOINTMENTS. THE COMMITTEE MET AND RECOMMENDS BILLY DELGADO TO FILL THE VACANCY . >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND TO ACCEPT THE NOMINATION. ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. >> City Secretary: NEXT IS THE PARKS AND ADVISORY COMMITTEE. THERE ARE SIX VACANCIES. >> MOVE TO REAPPOINT. >> SECOND. >> Mayor Guajardo: OKAY . ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. >> City Secretary: SO THAT LEAVES US WITH TWO VACANCIES TO FILL. MS. VAUGHN NOMINATES ARIANA JONES. >> Mayor Guajardo: JEREMY BERRY? MS. PAXSON IS NOMINATING JEREMY BERRY. ANY OTHER NOMINATIONS? >> [OFF MIC] >> Mayor Guajardo: SEKORO RAMOS. WHAT NAMES? WE DON'T HAVE ANY OTHER -- LET'S SEE. JONES, BERRY, AND RAMOS. >> City Secretary: YOU WANT TO CLOSE NOMINATIONS, MAYOR? >> Mayor Guajardo: YES, I DID. >> City Secretary: EVERYBODY GETS TO PICK TWO. WHERE WOULD YOU LIKE TO START? WITH MR. CANTU OR MS. VAUGHN? >> Mayor Guajardo: MR. CANTU. >> Cantu: RAMOS AND BERRY. >> City Secretary: THERE'S TWO VACANCIES. >> RAMOS AND BERRY. >> [OFF MIC] >> JONES AND BERRY. >> Mayor Guajardo: JONES AND RAMOS. >> Barrera: JONES AND BERRY. >> JONES AND RAMOS. >> JONES AND BERRY. >> [OFF MIC] >> City Secretary: JONES AND BERRY ARE APPOINTED. THANK YOU. OKAY. LAST WE HAVE THE SISTER CITY COMMITTEE. THERE ARE FOUR VACANCIES AND STAFF IS RECOMMENDING POSTPONING TWO OF THE VACANCIES, TWO OF THE APPOINTMENTS. SO THAT WOULD LEAVE US WITH TWO VACANCIES TO FILL. AND VALERIE HARBOLAVIC AND ROMERO ARE SEEKING REAPPOINTMENT. >> Mayor Guajardo: ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. >> City Secretary: THERE'S ALSO A REQUEST TO APPOINT SUZANNE WESTY HORN AS AN ADVISORY NON-VOTING MEMBER FOR ONE TERM. >> 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 . >> City Secretary: THANK YOU VERY MUCH, MAYOR AND COUNCIL. >> Mayor Guajardo: THANK YOU, MS. HUERTA. THAT TAKES US TO SECTION H, OUR CONSENT AGENDA, ITEMS 2 THROUGH 9. DO WE HAVE ANY REQUESTS FROM THE COUNCIL TO PULL ANY ITEMS, 2 THROUGH 9? ITEM NO. 2? DO WE HAVE ANY REQUESTS FROM THE AUDIENCE TO PULL 2 THROUGH 9? ACTUALLY, I'LL ENTERTAIN A MOTION TO APPROVE CONSENT AGENDA WITH THE EXCEPTION OF ITEM NO. 2. >> I MAKE A MOTION. >> SECOND. >> 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. COUNCILWOMAN PAXSON, YOU HAVE A QUESTION OR COMMENT ON NO. 2, WHICH IS THE APPROVAL OF THE JULY 29 MEETING MINUTES. >> Paxson: THANK YOU, MAYOR. I WAS HOPING THAT WE COULD INCLUDE UNDER ITEM NO. 6 A LITTLE BIT OF THE DISCUSSION THAT ENTAILED A MOTION, EVEN IF IT DIDN'T PASS. BECAUSE WE WERE ORIGINALLY GOING TO REARRANGE SOME OF THAT FUNDING WITH HOW THE PACKET SHOWED ON SECOND READING A DIFFERENCE. IF WE COULD INCLUDE SOME OF THAT, THAT WOULD BE MY REQUEST. >> City Secretary: SO YOU WANT TO INCLUDE -- THE WAY WE WERE HANDLING THE MINUTES WAS TO DO MAIN MOTIONS ONLY. THAT MOTION THAT YOU'RE TALKING ABOUT WAS A MOTION TO AMEND. BUT IF YOU WOULD LIKE IT INCLUDED, WE COULD INCLUDE IT. >> Paxson: I WOULD APPRECIATE THAT. >> City Secretary: AS LONG AS THERE'S NO OBJECTION. >> Paxson: I WOULD MOVE TO APPROVE. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. CAN YOU EXPLAIN AGAIN EXACTLY WHAT MOTION IS BEING AMENDED? >> City Secretary: ITEM NO. 6. I DON'T HAVE IT IN FRONT OF ME BUT IT'S THE CDBG ITEM. IF YOU RECALL THERE WAS -- WE REALIGNED SOME FUNDING FOR THAT. IT WAS $500,000. YOU'RE TALKING ABOUT THAT ONE, RIGHT? NOT THE MOTION THAT FAILED BUT THE ONE THAT MR. BARRERA MADE. IS THAT CORRECT? >> Paxson: IF WE COULD INCLUDE -- BECAUSE THERE WAS A MOTION BASED ON THE PACKET WHERE THE PACKET OFFERED A SECOND OPPORTUNITY. THE MOTION HAD BEEN MADE TO APPROVE THAT SECOND OPPORTUNITY. THAT DIDN'T PASS. >> City Secretary: OH, THAT DIDN'T PASS. >> Paxson: BUT JUST FOR THE RECORD THAT THERE WAS A MOTION ON IT. >> City Secretary: WELL, I THOUGHT YOU WERE REQUESTING THE MOTION THAT ACTUALLY WAS APPROVED, THAT MR. BARRERA MADE. >> Paxson: I THINK THAT WAS ON THERE. >> City Secretary: YEAH. SO MOTIONS THAT FAIL, JUST PER ROBERT'S, WE DON'T INCLUDE MOTIONS THAT FAIL. WELL, MOTIONS THAT FAIL ARE INCLUDED. I'M SORRY. IT'S -- IT WAS -- OKAY. SO YOU WANT THE MOTION THAT FAILED. THAT'S WHAT YOU WANT TO INCLUDE IN THERE? >> Paxson: YEAH. >> City Secretary: IF IT FAILED THEN YES. WE CAN INCLUDE IT. >> Mayor Guajardo: IS THAT A PROCESS? I MEAN, FOR THE COUNCIL TO BE CLEAR, ANY MOTION WE CAN JUST COME AND SAY INCLUDE IT. OR IS IT SOMETHING YOU'RE GOING TO DO FROM NOW ON? >> City Secretary: SINCE THE MEETINGS ARE GOING SO LATE, WE WERE CHANGING OUR BUSINESS PROCESS TO JUST WORK WITH WHAT ROBERT'S RULES OF ORDER SAYS AND WHAT OTHER CITIES DO. THOSE CITIES USE MAIN MOTIONS ONLY, SO THAT'S WHAT ULTIMATELY PASSED, NOT THE AMENDMENTS THAT WERE INCLUDED OR THE ONES THAT FAILED. BUT SHE'S ASKING THAT THAT BE INCLUDED. I MEAN, AS LONG AS YOU'RE OKAY WITH THAT, WE CAN DO IT. >> Mayor Guajardo: SO FOR THIS ONE TIME? >> City Secretary: WE DO HAVE TRANSCRIPTS OF THE MEETING THAT PROVIDE A LOT OF DETAIL ON WHAT HAPPENED. WE HAVE VIDEO ON WHAT HAPPENS. SO WE'RE TRYING TO KEEP THE MINUTES -- YEAH. SUCCINCT. JUST ACTION MINUTES. NOT DISCUSSION OR ANYTHING LIKE THAT. FOR A COUPLE OF REASONS. BECAUSE IT'S A COMMON PRACTICE -- I WOULD SAY A BEST PRACTICE. IT'S SOMETHING THAT'S IN ROBERT'S RULES OF ORDER AND DUE TO OUR CURRENT BUSINESS PROCESSES, IT MAKES SENSE. SO THAT'S WHY WE'RE HANDLING IT THAT WAY. >> Mayor Guajardo: IS IT ROBERT'S RULES OF ORDER OR NOT? >> City Secretary: IT IS. TO JUST DO MAIN MOTIONS. BUT THE MINUTES ARE APPROVED BY THE BODY SO IF THE BODY IS OKAY WITH THAT, THEN WE CAN INCLUDE IT. BUT I WOULDN'T DO THAT AS A PRACTICE. >> Mayor Guajardo: OKAY. SO IT CAN BE ON AN INDIVIDUAL BASIS. >> City Secretary: IF THE COUNCIL IS OKAY WITH HER REQUEST, THAT'S FINE. I'LL INCLUDE IT. >> Barrera: I DON'T HAVE A PROBLEM WITH IT. >> Mayor Guajardo: DOES IT HAVE TO BE A MOTION OR JUST WE'RE OKAY WITH IT? >> City Secretary: WE CAN AMEND IT. >> Mayor Guajardo: SHE MADE A MOTION. >> [OFF MIC] >> City Secretary: YEAH, AND I'M GOING TO SEND AN E-MAIL WITH THAT INFORMATION AS WELL, JUST SO IT'S CLEAR. >> Mayor Guajardo: YEAH. THAT'S WHY I WAS ASKING. SO WE CAN UNDERSTAND THAT. WE HAVE A MOTION AND A SECOND TO AMEND THE MINUTES TO INCLUDE THAT FAILED MOTION. ALL IN FAVOR SAY AYE. >> [CHORUS OF AYES] >> Mayor Guajardo: ANY OPPOSED SAY NO. THE MOTION CARRIES. AND THAT WILL TAKE US TO ITEM NO. 10. >> [OFF MIC] >> Mayor Guajardo: YEAH, WE DID. SECTION K. INDIVIDUAL CONSIDERATION ITEMS 10 THROUGH 13. ITEM 10 IS A RESOLUTION TO CONSIDER A PROPOSED AD VALOREM TAX RATE AND TAKING A RECORD VOTE SETTING THE DATE FOR THE PROPOSED FISCAL YEAR 2026 BUDGET AND PROPOSED FISCAL YEAR 2026 AD VALOREM TAX RATE, PUBLIC HEARINGS, AND FIRST READING ORDINANCES ON SEPTEMBER 2, 2025 WITH ADOPTION OF THE FISCAL YEAR 2026 BUDGET AND FISCAL YEAR 2026 AD VALOREM TAX RATE ON SEPTEMBER 9, 2025 . >> GOOD MORNING, MAYOR AND COUNCIL. DIRECTOR OF FINANCE. AS WE WAIT FOR THE PRESENTATION TO COME UP, JUST A LITTLE BIT ABOUT THIS ITEM. THIS ITEM BEFORE YOU IS TO SET THE MAXIMUM TAX RATE TO BE CONSIDERED FOR THE 2026 BUDGET. THIS ITEM IS NOT THE ACTUAL ADOPTION OF THE TAX RATE. THAT WILL HAPPEN SEPTEMBER 2 AND WITH A SECOND READING ON SEPTEMBER 9 FOR THAT TAX RATE ADOPTION. THIS AGENDA ITEM IS NEEDED TO COMPLY WITH THE STATE'S TRUTH IN TAXATION RULES AND TO START THE PUBLIC NOTICE PROCESS. AFTER TODAY, PUBLIC NOTICE WILL BE POSTED ON OUR WEBSITE AND WILL ALSO BE SCHEDULED TO BE PUBLISHED IN THE LOCAL NEWSPAPER. NOTIFYING THE PUBLIC OF THE PROPOSED TAX RATE AND THE DATE OF OUR PUBLIC HEARING, WHICH WILL BE SEPTEMBER 2. I DO WANT TO ADVISE COUNCIL HERE IF THE PROPOSED TAX RATE IS ABOVE THE NO-NEW-REVENUE TAX RATE, THEN THE STATE REQUIRES SPECIFIC LANGUAGE IN OUR NOTICES, SPECIFICALLY IF THAT PROPOSED RATE IS HIGHER THAN THE NO-NEW-REVENUE RATE, OUR NOTICE OF PUBLIC HEARING ON TAX INCREASE, EVEN THOUGH OUR TAX RATE WOULD REMAIN THE SAME, IT'S JUST VERBIAGE REQUIRED BY THE STATE. YOU MAY GET QUESTIONS AS FAR AS ARE WE INCREASING THE TAX RATE, BECAUSE OF THAT NOTICE. BUT WE ARE PROPOSING THE SAME TAX RATE. JUST SOME INFORMATION ON THE TRUTH IN TAXATION. IT'S REALLY GOVERNED BY THE TEXAS CONSTITUTION AS WELL AS THE TEXAS TAX CODE CHAPTER 26. THE OVERALL PROCESS HERE IS THE CITY STARTS WITH A BUDGET PROCESS WHICH INCLUDES A PROPOSED TAX RATE BUILT INTO IT TO FUND THE GENERAL FUND REVENUE AS WELL AS THE DEBT SERVICE. THE TAX ASSESSOR RECEIVES CERTIFIED VALUES FROM THE APPRAISAL DISTRICTS AND CALCULATES THE NO-NEW-REVENUE RATE AS WELL AS THE VOTER-APPROVED RATE. WE THEN COME TO CITY COUNCIL TO SET A PROPOSED TAX RATE. WE THEN, ONCE THAT PROPOSED TAX RATE IS APPROVED BY THE GOVERNING BODY, WE THEN PUBLISH A NOTICE, AND THEN FOLLOWED BY A PUBLIC HEARING FOLLOWED BY THE ADOPTION OF A TAX RATE. IF AT ANY POINT THE COUNCIL WANTS TO HOLD A TAX RATE ABOVE THE VOTER-APPROVED RATE THEN WE WOULD HAVE TO HAVE AN ELECTION TO ADOPT THAT TAX RATE. JUST BEFORE WE JUMP INTO THE TRUTH IN TAXATION DEFINITION, JUST WANT TO PROVIDE A REFRESHER TO COUNCIL AND THE PUBLIC ON THE CITY'S CURRENT TAX RATE. OUR TAX RATE CONSISTS OF TWO SEPARATE RATES. ONE FOR MINUTES AND OPERATIONS. THAT IS OUR GENERAL FUND AS WELL AS THE STREET FUND . AND THEN YOU HAVE OUR INTEREST IN SEEKING RATE WHICH FUNDS ARE DEBT SERVICE PAYMENTS ANNUALLY. OUR MAINTENANCE AND OPERATION TAX RATE IS .378825 AND OUR DEBT SERVICE TAX RATE IS .220949. COLLECTIVELY THAT CREATES OUR TAX RATE OF .599774. JUMPING INTO THE DIFFERENT VERBIAGE, WE TALK ABOUT THE NO-NEW-REVENUE TAX RATE. THIS ESSENTIALLY IS THE TAX RATE NEEDED TO PRODUCE THE SAME AMOUNT OF REVENUES WE CURRENTLY HAVE IN THE 2025 BUDGET YEAR. SO ESSENTIALLY KEEPING REVENUES FLAT. AND THAT TAX RATE, BASED ON THE CALCULATION, WOULD BE .5998423. WE THEN HAVE THE VOTER APPROVAL TAX RATE -- THIS WAS A MAXIMUM TAX RATE THAT CAN BE SET BY THE GOVERNING BODY BEFORE IT TRIGGERS AN ELECTION . WE HAVE THE NO NEW REVENUE MAINTENANCE AND OPERATION M&O TAX RATE NEEDED TO KEEP YOUR MAINTENANCE OPERATION REVENUE FLAT YEAR OVER YEAR. THIS TAX RATE IS CAPPED BY STATE STATUTE TO 3.5% INCREASE. WE THEN HAVE THE INTERSECTION AND SINKING RATE, WHICH IS ESSENTIALLY YOUR DEBT SERVICE RATE. THAT IS THE DEBT RATE THAT WILL FUND YOUR DEBT SERVICE PAYMENT. YOU'LL HEAR THE WORD UNUSED INCREMENT. THIS IS AN ALLOWANCE PROVIDED TO THE CITY WHO DON'T GO UP TO THE VOTER-APPROVED TAX RATE. THAT DIFFERENCE CAN BE SAVED UP AND USED IN FUTURE TAX RATE ADOPTIONS. SO THE TRUTH IN TAXATION REQUIRES THAT THERE BE A RECORD VOTE WHENEVER THE GOVERNING BODY DECIDES TO SET A PROPOSED MAX TAX RATE ABOVE THE NO-NEW-REVENUE RATE. THE PROPOSED BUDGET WAS BUILT WITH THE ASSUMPTION RATE OF .599774. ONCE THIS MAXIMUM TAX RATE IS SET, OUR PROPOSED TAX RATE, COUNCIL CAN GO BELOW THAT OVER THIS NEXT MONTH, CHANGE THAT TAX RATE. TRYING TO GO ABOVE THAT TAX RATE WOULD START THE PROCESS ALL OVER AGAIN WHERE WE WOULD HAVE TO PROVIDE A NEW PUBLIC NOTICE AND START THE ADOPTION AGAIN. AND SO THE TRUTH IN SACKS TAXATION, THE 2025 CALCULATIONS CAME BACK WITH A RATE OF .598423 AND A VOTER APPROVAL RATE OF .660677. THAT VOTER APPROVAL TAX RATE DOES INCLUDE AN ALLOWANCE THAT WE HAVE SAVED OVER THE YEARS OF ABOUT 4 CENTS PER $100 VALUATION. STAFF IS RECOMMENDING TO SET THE MAXIMUM TAX RATE CEILING OF THE CURRENT TAX RATE WHICH IS .599774 PER $100 VALUATION AS WELL AS CALL THE PUBLIC HEARING FOR THE FISCAL YEAR 2026 BUDGET AND THE 2026 TAX RATE TO BE HELD SEPTEMBER 2, 2025. THAT CONCLUDES MY PRESENTATION AND THEN I'M HERE FOR ANY QUESTIONS. >> Mayor Guajardo: THANK YOU. DOES ANYBODY HAVE ANY QUESTIONS? EVERYBODY UNDERSTOOD ALL THAT? THANK YOU. I'M GOING TO ASK FOR PUBLIC COMMENT. WOULD ANYONE IN THE AUDIENCE LIKE TO COMMENT ON ITEM NO. 10? OKAY. WE'LL CLOSE PUBLIC COMMENT AND I WILL ENTERTAIN A MOTION TO APPROVE ITEM 10 AS STATED. >> I MOVE FOR APPROVAL. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. REBECCA, ARE YOU ENTERING THIS? PLEASE SUBMIT YOUR VOTE. >> IT WOULD NEED TO BE A RECORD VOTE. >> [OFF MIC] >> OKAY. >> Mayor Guajardo: OKAY. THE MOTION CARRIES. THANK YOU FOR THE PRESENTATION. ITEM NO. 11 IS AN ORDINANCE AWARDING A CONSTRUCTION CONTRACT TO JE CONSTRUCTION SERVICES OF CORPUS CHRISTI FOR THE HARBOR BRIDGE PARKS MITIGATION IMPROVEMENT PROJECT IN AN AMOUNT UP TO $16,497,423. >> LOOKING AT MY WATCH. I'M SURPRISED. GOOD MORNING, MAYOR AND COUNCIL MEMBERS. >> Mayor Guajardo: YOU'RE ONE MINUTE AWAY. >> Edmonds: JEFF EDMONDS, DIRECTOR OF ENGINEERING SERVICES. I'M GOING TO INTRODUCE THE ITEM AND TURN IT OVER TO ROBERT DODD AND HE'S GOING TO GO THROUGH THE PRESENTATION. SO THE WORK THAT IS COVERED UNDER THIS CONTRACT HAS BEEN CONTEMPLATED OR SOME FORM OF THIS WORK HAS BEEN CONTEMPLATED FOR OVER TEN YEARS, SINCE THE INCEPTION OF THE HARBOR BRIDGE PROJECT. THE FIRST FUNDING WAS PLACED ON BOND 14 BECAUSE WE HAD AN OBLIGATION TO DO MITIGATION TO SOME OF THE IMPACTS THAT WERE CAUSED TO THE PARKS BY THE HARBOR BRIDGE. THIS ITEM AWARDS THE CONSTRUCTION CONTRACT FOR -- I'LL CALL IT PHASE 1. WE'RE STILL GOING TO BE BRINGING, SOMETIME IN THE NEXT MONTH OR SO, THE POOL CONTRACT FOR CONSTRUCTION. SO THIS IS THREE LEGS OF A FOUR-LEGGED STOOL. THIS ITEM ALSO APPROPRIATES SOME FUNDING THROUGH MPO THAT WAS SET ASIDE FOR THE AQUATIC CENTER. LIKE I SAID, THAT PROJECT IS GOING TO BE ADVERTISED FOR BIDS NEXT MONTH. SO THERE WERE THREE BIDDERS ON THIS PROJECT. THEY GROUPED PRETTY CLOSELY, WHICH IS AN INDICATION TO US THAT WE RECEIVE COMPETITIVE BIDS. JE IS THE LOW BIDDER. THEY'RE A LOCAL CONTRACTOR AND THEY'VE BEEN DOING A LOT OF WORK WITH US RECENTLY AND WE'VE HAD POSITIVE EXPERIENCE WITH THEM. WE'RE EXPECTING CONSTRUCTION TO TAKE 12 MONTHS AND COMPLETE SEPTEMBER OF NEXT YEAR. I WOULD ALSO LIKE TO MENTION AS PART OF THE FOUR-PARTY AGREEMENT THAT WE HAD, WE HAVE MET REGULARLY WITH THE ADVISORY BOARD TO DEVELOP THE SCOPE FOR THESE PROJECTS AND THEY HAVE REVIEWED THOSE PLANS AND APPROVED THEM. AND I'M GOING TO TURN IT OVER TO ROBERT DODD AND HE'S GOING TO GO OVER SOME OF THE DETAILS OF THE PROJECT. >> [OFF MIC] >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. BEFORE WE HEAR THE PRESENTATION, CAN YOU REMIND US BRIEFLY WHAT IS THE FOUR-PARTY AGREEMENT? THAT GETS REFERENCED QUITE A BIT BUT YET I DON'T KNOW IF WE ALL KNOW EXACTLY. >> Edmonds: I'M SORRY. THIS GETS TO BE INSIDE BASEBALL. SO WHEN THE ENVIRONMENTAL IMPACT STATEMENT WAS PUBLISHED ON THE HARBOR BRIDGE, THERE WAS A TITLE 6 CIVIL RIGHTS COMPLAINT THAT WAS FILED AGAINST THAT. AND THEN THE TWO-PARTY AGREEMENT WAS AN AGREEMENT BETWEEN THE FEDERAL HIGHWAY ADMINISTRATION AND TxDOT ON ISSUES THAT WOULD BE DONE TO ADDRESS THOSE COMPLAINTS. AND THEN THE FOUR-PARTY AGREEMENT, SINCE TxDOT WAS THE ONLY ONE THAT HAD A CONTRACT WITH THE FEDERAL HIGHWAY ADMINISTRATION, THE FOUR-PARTY AGREEMENT WAS WITH THE CITY, THE PORT, TxDOT, AND THE HOUSING AUTHORITY. >> Campos: OKAY. >> Edmonds: AND EACH ONE HAD OBLIGATIONS UNDER THAT FOUR-PARTY AGREEMENT TO HELP ADDRESS TITLE VI COMPLAINT . >> THANK YOU FOR REMINDING US. >> ROBERT DODD, DIRECTOR OF PARKS AND RECREATION. SO TO START OUT WITH THE PROJECTS THAT THE -- FOR THE HILLCREST PROJECT, THE PROJECT THAT ALL PROJECTS WILL BE CONSTRUCTED AT THE SAME TIME. IN THIS TIME, PARKS AND RECREATION WILL HIRE TEN NEW EMPLOYEES. EIGHT PARK TECH 1'S AND TWO PARK TECH IIs. FOR THOSE POSITIONS, ADVERTISEMENTS WILL GO OUT IN JUNE OF 2026 . WE'LL ONBOARD IN JULY OF 2026. WE WILL ALSO, WORKING WITH JEFF, WE WILL MONITOR THE PROGRESS OF THE CONSTRUCTION AND ADJUST AS NEEDED. THE TC AYERS AQUATIC CENTER, THE CONSTRUCTION CONTRACT WILL COME TO COUNCIL IN THE COMING WEEKS. WE HAVE UPDATED AND REEVALUATED OUR TIMELINE FOR STAFF HIRING. WE WILL HIRE TWO FULL-TIME POSITIONS AT THE RECREATION DEPARTMENT. THESE POSITIONS ARE ALSO BUDGETED FOR THREE MONTHS. WE'LL HAVE AN ASSISTANT PROGRAM MANAGER AND A POOL MECHANIC TO MAINTAIN AND OPERATE THE NEW AQUATIC CENTER. THIS GIVES US TIME FOR TRAINING, RECEIVE CERTIFICATION, AND ALSO SOME HANDS-ON TYPE WORK WITH THE OTHER POOLS AND OUR POOL MECHANICS. FOR THESE POSITIONS WE'LL ADVERTISE IN APRIL OF 2026 AND NEW STAFF WILL BE ON IN MAY OF 2025. MOVING ON TO THE PARKS. THE FIRST ONE IS AT WASHINGTON COLES PARK AT 1113 NORTH ALAMEDA STREET. THE AMENITIES ARE RESTROOMS, TRAIL HEAD PLAZA, TRAIL HEAD ENTRANCE, A MULTIMODAL PATH, WHICH IS BIKE, WALK, AND RUN. STAGE AREA, COVERED PAVILION, NEW PARKING LOT, AND A FOOD TRUCK COURT. >> Zanoni: THIS IS THE TRAIL HEAD TO THE BRIDGE. THERE'S A SEPARATE PEDESTRIAN PROTECTED WALKWAY THAT A LOT OF RESIDENTS ARE USING TODAY. TODAY THEY ARE JUST PARKING ON THE SIDE OF THE STREET BUT THIS WILL BE THE DESTINATION THAT'S A TWO-BLOCK PIECE OF PROPERTY THE CITY OWNS. SO AS YOU CAN SEE, PARKING PAVILION WHERE PEOPLE CAN EAT LUNCH, RESTROOMS WILL BE THERE. AND AN AMPHITHEATER WHERE AWARDS OR EVENTS CAN TAKE PLACE. WE EXPECT THERE WILL BE A LOT OF CHALLENGE COMPETITIONS WALKING OR CYCLING ACROSS THE BRIDGE. SO THIS WILL BE THE DESTINATION ON THIS SIDE OF THE BRIDGE FOR THESE EVENTS. >> THANK YOU, PETER. THE NEXT PARK IS DR. H.J. WILLIAMS. THIS IS LOCATED AT 2526 NUECES STREET. THE AMENITIES INCLUDED IN THIS PARK WILL BE RESURFACING THE BASKETBALL COURT AND STRAYED STRUCTURE. RESURFACING THE COURT AT PEABODY AND MINTON. A NEW PLAYGROUND UNIT, A NEW MEMORIAL, NEW RESTROOMS, AND EXERCISE STATIONS. OUR NEXT PARK IS AT BEN GARZA LOCATED AT 1815 HOWARD STREET. AND THIS, THE AMENITIES HERE WILL BE A MAJOR TRAILHEAD WITH SIGNAGE AND CONNECTIVITY. A LOOP TRAIL, AND A PARK ENTRY PLAZA. NEXT IS AT TC AYERS. THIS IS AT 1002 KOCH STREET. THIS WILL HAVE A SOFTBALL FIELD WITH DUGOUTS, BLEACHERS, AND A BACKSTOP. LOOP TRAIL OVERHEAD ELECTRIC AND COMMEMORATION ALONG THE TRAIL. THIS IS THE HIKE AND BIKE TRAIL. THIS IS HOW THEY ARE CONNECTED. YOU CAN SEE THE GREEN AND THE BLUE LINES. IT'S HOW THIS WILL ALL BE CONNECTED. THIS WAS BEFORE THE HARBOR BRIDGE. DO Y'ALL SEE WHERE THE HARBOR BRIDGE WOULD BE? IT'S NOT -- I WOULD SAY IT'S RIGHT THERE. THE TxDOT TRAIL. THAT'S WHERE THE BRIDGE -- THAT'S WHERE OUR HARBOR BRIDGE IS. >> Zanoni: ALSO, YOU CAN GO BACK ONE, PLEASE. YOU CAN SEE KIND OF IN THE MIDDLE THE FREEDOM TRAIL IS THE NAME OF THIS. THE CITIZEN ADVISORY COMMITTEE WILL HAVE IT NAMED THE FREEDOM TRAIL. THERE WILL BE SIGNAGE AND THE POINT IS YOU CAN WALK FROM OR RUN FROM VARIOUS DESTINATIONS ALONG THIS TRAIL THAT HAVE HISTORICAL SIGNIFICANCE IN THE HILLCREST/WASHINGTON COLES NEIGHBORHOOD. SO IT'S A CONNECTIVITY TRAIL. FREEDOM TRAIL WILL OFFER WALKING AND TAKE YOU FROM ONE OF THE DESTINATIONS TO THE NEXT. THIS IS AN IMPORTANT ONE THAT MR. LAMONT TAYLOR WANTED, HE WAS PART OF THE CITIZEN ADVISORY GROUP. THIS IS AN ASSET AS WELL FOR THE PROJECT. >> YES, SIR. THANK YOU. OUR LAST SLIDE IS THE NORTH BEACH TRAILHEAD. THIS WILL BE AT THE INTERSECTION OF EAST CAUSEWAY BOULEVARD AND TREASURE AVENUE AT THE NORTH END OF THE NEW HARBOR BRIDGE FOR THE PEDESTRIAN PATH. AGAIN, THERE'S NO CURRENT TRAIL THERE NOW. THIS WILL ALL BE NEW. SO THAT IS THE END OF OUR PRESENTATION, IF YOU HAVE ANY QUESTIONS. >> Edmonds: LET ME MAKE ONE CLARIFICATION. THAT NORTH BEACH TRAILHEAD WAS INCLUDED FOR ILLUSTRATIVE PURPOSES. THAT'S BEING BUILT BY TxDOT AS PART OF THEIR PROJECT. KERRY MEYER WANTED ME TO POINT OUT ALL THE WORK IS HAPPENING ON THIS SIDE OF THE BRIDGE. >> Mayor Guajardo: OKAY. THANK YOU. COUNCILMAN SCOTT, YOU HAVE A QUESTION OR COMMENT? >> Scott: I DO. SO THE FOURTH LEG IS THE POOL. TODAY WE'RE APPROVING 14 -- WHAT'S THE NUMBER? I'M SORRY. HOW MUCH TODAY? AND THEN HOW MUCH MORE IS THE POOL? AND THEN WHAT'S THE TOTAL? IT'S ALL GOOD, BY THE WAY. I'M JUST TRYING TO POINT OUT SOME GOOD STUFF. >> I CAN'T GET BACK TO -- 16 AND SOME CHANGE. >> I HAVE INDIVIDUAL BREAKDOWNS OF EACH PARK. >> Scott: I'M JUST CURIOUS. IT'S A GOOD THING. >> Zanoni: $16.5 MILLION. >> Scott: THAT INCLUDES THE POOL? >> Zanoni: THAT DOES NOT INCLUDE THE POOL. >> Scott: WHAT'S THE POOL? >> Zanoni: THE POOL IS ABOUT $10 MILLION. >> 10 TO 12. >> Zanoni: IT'S ABOUT $10 MILLION. TOTAL IN THE CAPITAL BUDGET, THERE'S $26 MILLION FOR ALL THESE PROJECTS. THAT'S ALL IN, INCLUDING ENGINEERING SERVICES. >> Scott: YEP, YEP. THAT'S ALL I HAD. THANKS. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: YES. JEFF, WE'VE BEEN GIVING A LOT OF CONTRACTS TO JE CONSTRUCTION. ARE YOU CONFIDENT THEY HAVE THE CAPACITY TO DELIVER THE PROJECT IN A TIMELY FASHION? >> Edmonds: WELL, I WOULD SAY THAT THERE WAS A TIME WHERE WE HAD A LOT OF QUESTIONS ABOUT THEIR CAPABILITY. IN FACT, ONE TIME WE DECLARED THEM NONRESPONSIVE ON ONE OF THE RESIDENTIAL STREET CONTRACTS. THIS WAS PROBABLY FOUR, MAYBE FIVE YEARS AGO WHEN THEY WERE JUST GETTING INTO THE CITY WORK. AND BUT NOW I REALLY DON'T HAVE ANY CONCERNS. THEY'RE UP TO DATE ON ALL THEIR CURRENT PROJECTS AND THEY'VE BEEN BIDDING ON MUCH LARGER PROJECTS THAN THIS. AND PERFORMING ACCEPTABLY. >> Hernandez: THAT'S A GOOD SUCCESS STORY. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: JEFF, JUST TO REMIND -- A COUPLE OF WEEKS AGO, A COUPLE OF COUNCIL MEMBERS WERE ABLE TO KIND OF GO AROUND HILLCREST AREA -- AND THIS IS GREAT, YOU KNOW, NEWS FOR THAT NEIGHBORHOOD AND FOR THAT SIDE OF TOWN, LONG OVERDUE. BUT I ALSO WANT TO MAKE SURE THAT BEFORE THEY EVEN GET TO THIS AREA EVENTUALLY, YOU KNOW, WE NEED TO MAKE SURE THAT WE KEEP UP WITH THOSE STREETS. JUST RIDING ALONG, JUST TO GET THERE WAS LIKE, YOU KNOW, LIKE A WAR ZONE. YOU KNOW, SO ONE OF THOSE STREETS THAT I REMEMBER GOING THROUGH WAS KENNEDY. I JUST WANT TO MAKE SURE THAT WE KEEP THOSE THINGS IN MIND AND THAT LIGHTING IS STILL PART OF ALL THIS. IT'S NOT JUST THE PARK, YOU KNOW, THE FREEDOM TRAIL AND ALL THIS, BUT EVERYTHING ELSE AROUND IT. SO I JUST WANT TO REMIND THE PUBLIC AND YOU AND THE COUNCIL THAT WE KEEP THAT IN MIND. >> Edmonds: I CAN ADDRESS THE AREAS THAT ARE IMPACTED BY THE CONSTRUCTION WITHIN THE WORK LIMITS. WE CAN MAKE SURE THAT THEY TAKE CARE OF THOSE STREETS WITHIN THE SITES. >> Campos: PART OF THAT FOUR-PART AGREEMENT IS TO CONTINUE TO BEAUTIFY THAT AREA. IT'S NOT JUST THAT PARTICULAR AREA THAT WE'RE DISCUSSING TODAY, BUT HOLISTICALLY THAT WHOLE AREA NEEDS SOME BEAUTIFICATION AND THEY DESERVE IT. >> Edmonds: I AGREE. I'M JUST SAYING WITHIN MY AREA OF RESPONSIBILITY, MY DRIFT INTO PUBLIC WORKS AREA. >> Campos: I JUST NEEDED TO MAKE THAT STATEMENT. THANK YOU FOR BEING THE ONE THAT I'M SAYING IT TO. THANK YOU, JEFF. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. WOULD ANYONE IN THE AUDIENCE LIKE TO MAKE PUBLIC COMMENT OR COMMENT ON ITEM NO. 11? >> COUNCILWOMAN, COUNCIL, MAYOR. MY NAME IS LAMONT TAYLOR AND I'M PART OF THE HILLCREST NEIGHBORHOOD ASSOCIATION AND THE CITIZENS ALLIANCE FOR PROGRESS. THIS PROJECT, AS YOU KNOW, HAS BEEN ON THE BOARD FOR A LONG TIME. I GUESS EIGHT YEARS, IF YOU WILL. AND FINALLY IT'S COMING TO FRUITION AND SO I WOULD JUST LIKE TO APPLAUD STAFF FOR MAKING SURE THAT IT COMES TO FRUITION. AND THANK YOU FOR YOUR EFFORTS AND THINGS THAT YOU DO. THANK YOU FOR THIS PROJECT. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. TAYLOR. ANYONE ELSE? ITEM NO. 11. YES SIR. >> HI, MAYOR AND COUNCIL. I JUST WANTED TO BRING UP ANOTHER POINT, LIKE COUNCILWOMAN SYLVIA SAID. ESPECIALLY WITH THE POOL AREA -- >> City Secretary: SIR, CAN YOU STATE YOUR NAME, PLEASE? >> ALEX BENAVIDES AND I'M FROM DISTRICT 3. I WAS THINKING ABOUT AMENITIES. IS THERE ANYTHING FOR ADULT DISABLED PEOPLE FOR CHANGING AREAS, ESPECIALLY AROUND THE POOL? ARE THERE ENOUGH ACCOMMODATIONS FOR DISABLED COMMUNITY, ESPECIALLY I DON'T THINK ANY PARKS HERE IN CORPUS CHRISTI HAVE AN ADULT CHANGING STATION FOR A DISABLED ADULT. WHAT THAT WOULD ENTAIL IS SOMEONE HAS TO GET ON THE FLOOR TO CHANGE A PERSON, AND THAT'S NOT REALLY THE BEST ACCOMMODATION. SO I'M JUST WONDERING IF IT'S TOO LATE TO PUT THAT IN OR IF WE CAN STILL BUDGET FOR SOMETHING LIKE THAT. >> Mayor Guajardo: MR. BENAVIDES, WE CAN'T ASK QUESTIONS OF THE COUNCIL BUT WE CAN CERTAINLY HAVE STAFF ADDRESS YOUR CONCERNS. AND THEY'RE VERY GOOD ONES. >> THANK YOU, MAYOR. >> Mayor Guajardo: MR. ZANONI. YEAH. THANK YOU, JEFF. ANYONE ELSE, ITEM NO. 11? WE'LL CLOSE PUBLIC COMMENT AND BEFORE WE TAKE THAT VOTE, I WILL ECHO SOME OF THE SENTIMENT. THIS IS A VERY GOOD NEWS ITEM AND IT'S VERY NICE TO FINALLY SEE, YOU KNOW, THIS IS ACTUALLY MOVING FORWARD AND GOING TO COME TO FRUITION. SO THANK YOU FOR THE PRESENTATION AND THE WORK EVERYONE'S DONE ON IT, AS MENTIONED, FOR ALMOST A DECADE, I THINK. WITH THAT, I WILL ENTERTAIN A MOTION TO APPROVE ITEM NO. 11. >> Roy: I MAKE A MOTION. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. ITEM NO. 12 IS A MOTION AUTHORIZING THE BARISI VILLAGE TAX INCREMENT REINVESTMENT ZONE NO. 6 OR TIRZ NO. 6 PROJECT AND FINANCING PLAN. >> GOOD AFTERNOON, MAYOR, COUNCIL, ARTURO WITH ECONOMIC DEVELOPMENT. TODAY WE'RE TAKING THE LAST STEP FOR THE COMPLETION AND CREATION OF BARISI VILLAGE, WHICH IS TIRZ NO. 6. I'M GOING TO GO QUICKLY OVER SOME OF THE THINGS THAT ENTAIL CREATING THE TIRZ, WHERE WE ARE IN THIS PROCESS FOR TIRZ NO. 6, AND WHAT WILL BE NEXT. OF COURSE THE TAX INCREMENT REINVESTMENT ZONE, AS YOU GUYS ARE ALL AWARE, IS FROM CHAPTER 311, AND IT CONSTITUTES THE ABILITY TO COLLECT TAXES FROM THE INCREMENT AND REINVEST INTO THE ZONE. I'M JUST SIMPLIFYING IT HERE THROUGH THIS SLIDE. TIRZ NO. 6 IS TO REIMBURSE INFRASTRUCTURE-RELATED PROJECTS, SPECIFICALLY BARISI VILLAGE'S VISION TO BE A PUBLICLY VISIBLE AND BENEFICIAL EUROPEAN-STYLE VILLAGE. THIS DEVELOPMENT AIMS TO CREATE AND ENHANCE PUBLIC SPACES, ATTRACTING A WIDE RANGE OF COMMUNITY MEMBERS WHO ARE EXPECTED TO GATHER AND SPEND TIME IN THESE REVITALIZED AREAS. SO WHAT CONSTITUTES THIS SPECIFIC PROJECT TO BE ABLE TO BE CREATED? WELL, THROUGH CHAPTER 311 ALLOWS IT TO CREATE. AND THEY MEET FIVE OF THE DIFFERENT CRITERIA, OF WHICH ONE OF THEM IS THE PREDOMINANCE OF INEFFECTIVE SIDEWALKS OR STREET LAYOUT, UNSANITARY CONDITIONS, THE DETERIORATION OF SITE OR OTHER IMPROVEMENTS AND CONDITIONS THAT ENGAGE LIFE OR PROPERTY BY FIRE OR OTHER CAUSES . THE SITE WE'RE LOOKING AT IS 127 ACRES SHOWN HERE AND IT IS DISPLAYED HERE ON THE GREEN AREA CLOSE TO THE COLLEGE, OF COURSE. AND IT'S 127 ACRES WITH THE SOLE OWNER BEING THE DEVELOPER. THE AREA HERE DISPLAYED IS GOING TO BE BROKEN DOWN INTO FIVE DIFFERENT PHASES OF CONSTRUCTION. I'LL GO OVER THAT IN JUST A LITTLE BIT. AND OF COURSE JUST A LITTLE BIT OF A BREAKDOWN OF WHAT THIS PROJECT ENTAILS. IT IS A VILLAGE WITH A BELL TOWER, WEDDING CHAPEL, AND EVENT SPACES. 1300 MULTIFAMILY UNITS. 350-PLUS SINGLE-FAMILY HOMES WITH AN EXPECTED HOTEL OF ABOUT 100 TO 120 ROOMS. AND WE'RE LOOKING AT OR EXPECTING ALSO 200,000 SQUARE FEET OF RETAIL SPACE. OF COURSE THERE IS A PUBLIC PARK GOLF COURSE EXPECTED WITH SPORTS COURTS AND A NATURE PRESERVE. THE ESTIMATED COMPLETION TIME OF THIS, ONCE IT BEGINS, IS 10 TO 12 YEARS. AND THE ULTIMATE VALUATION OR THE PROJECTED VALUATION AFTER IT'S COMPLETED, WE'RE LOOKING AT $800 MILLION TO ABOUT A BILLION DOLLARS IN PROPERTY VALUE. NOW, WITH THE PROJECT AND FINANCING PLAN, OF COURSE WE NEED TO DICTATE WHAT CAN BE USED, WHAT THE FUNDS CAN BE USED FOR. HERE ON THIS SLIDE YOU WILL SEE THE DIFFERENT CRITERIA OR THE DIFFERENT ITEMS THAT CAN BE USED UNDER THESE REINVESTMENT FUNDS. AND OF COURSE THEY DO INCLUDE STRUCTURED PARKING, LANDSCAPING, WAYFINDING PARKS FOUNTAINS PUBLIC RESTROOMS, PUBLIC PLAZA AND TOWER, SUPPLEMENT PUBLIC SAFETY, NATURE PRESERVE AND WALKING TRAILS, AND PUBLIC SEWAGE. NOW HERE THERE ARE -- I WANT TO POINT OUT THAT THERE ARE A COUPLE OF CAPS. EVEN THOUGH THE DEVELOPMENT WILL ULTIMATELY BE ELIGIBLE FOR UP TO $60 MILLION IN REIMBURSABLE EXPENSES, THERE ARE CAPS THAT ARE BEING STIPULATED BY ALL AGENCIES THAT ARE GOING TO BE PARTICIPATING. THE CITY OF CORPUS CHRISTI WOULD ENTAIL OR WOULD PUT A CAP OF $32 MILLION. NUECES COUNTY WOULD PUT A CAP OF $13 MILLION. DEL MAR, WE'RE STILL IN NEGOTIATIONS WITH THEM, WILL PUT A CAP OF $7 MILLION. WHAT THIS ENTAILS IS THAT ALL LEGAL AGENCIES COMBINED WILL ONLY ALLOW OR REIMBURSE UP TO $52 MILLION OF THE EXPECTED $60 MILLION OF IMPROVEMENTS. SO HERE I'M JUST GOING TO GO OVER THE FIVE DIFFERENT PHASES. I'M GOING TO SKIP THROUGH THESE JUST BECAUSE WE WENT THROUGH THIS JUST LAST MONTH. BUT IF YOU HAVE ANY QUESTIONS, FEEL FREE TO STOP ME. UNDER PHASE 1, WE ARE LOOKING ROUGHLY ABOUT 300 TO 400 UNITS. ONE RESTAURANT OF ABOUT 6,000 SQUARE FEET AND SOME RETAIL SPACE . EACH ONE OF THESE DOES INCLUDE A PARKING GARAGE AND, AGAIN, IT'S ONE OF THE ALLOWABLE REIMBURSEMENT FEES THAT I JUST DISCUSSED EARLIER. SO UNDER PHASE 2 WE ARE LOOKING AT AN ADDITIONAL 345 MULTIFAMILY UNITS. 12 SPORTS COURTS. THEY ARE GOING TO HAVE SOME SORT OF PARKING FACILITY. AND THIS ONE DOES INCLUDE A CLUBHOUSE OF ABOUT 12,000 SQUARE FEET. FOR PHASE NO. 3, WE ARE LOOKING AT AN ADDITIONAL 350 UNITS WITH A SINGLE-FAMILY LOTS AT 32 AND THE PARKING IS GOING TO BE PERSISTENT ON ALL OF THESE WITH A COMMUNITY ROOM THAT IS DIFFERENT ON THIS ONE OF ABOUT 8,000 SQUARE FEET. AND THEN TWO MORE PHASES. PHASE 4 WE'RE LOOKING AT 330 FAMILY UNITS. 25 SINGLE-FAMILY LOTS. THE TOWNHOMES, 85. COMMUNITY GARDENS, TWO. AND WATER AND BOARDWALK TWO. AND A SMALL GROCERY SHOP ON THIS ONE. LAST BUT NOT LEAST, THE FINAL PHASE WOULD INCLUDE 330 UNITS WITH A RETAIL SPACE OF 20,000 SQUARE FEET. THE PARKING GARAGE, TOWNHOMES OF 85 AND ONE COMMUNITY PARK WITH ONE PLAZA OF ABOUT 5,000 SQUARE FEET. SO HERE IS A PROJECTED PARTICIPATION ON THIS ONE WITH A WATERFALL EFFECT FROM THE CITY STARTING AT 95%, TRICKLING DOWN TO 5% IN A 20-YEAR TIME-FRAME. THE COUNTY RECENTLY TOOK AN ITEM FOR CONSIDERATION SO WE MAY HAVE TO ADJUST THIS VERY SLIGHTLY. HOWEVER, IN THE NEGOTIATIONS WE HAD SPOKEN ABOUT A 95% START-UP WITH THE SAME TRICKLE-DOWN EFFECT OF 5%, UP TO 5% AS THE ENDING PARTICIPATION RATE IN YEAR 20. AND DEL MAR, BECAUSE OF THEIR CURRENT POLICIES, THEY CANNOT GO BEYOND TEN YEARS. SO THEIR RATE WOULD BE ONLY AT 90% FOR THEIR TEN YEARS PARTICIPATION. THERE IS A CLAUSE CURRENTLY PUT IN PLACE IN THE PROJECT AND FINANCING PLAN AND IT'S STATED HERE ON THIS SLIDE BELOW. THAT IF THE DEVELOPER DOES NOT DEMONSTRATE IMPROVEMENTS OR BEGIN CONSTRUCTION BY JANUARY OF 2027, THE BOARD DOES HAVE THE ABILITY TO ESSENTIALLY RECONSIDER THIS TIRZ AND DETERMINE WHETHER OR NOT TO CONTINUE FORWARD. HERE IS THE PROJECTED TABLE AND IF YOU KIND OF BREAK IT DOWN INTO THREE PILLARS WITH THE CITY, NUECES AND DEL MAR, IF YOU LOOK AT THE MIDDLE COLUMN, THIS IS WHERE THAT PARTICIPATION COMES IN WITH THE CITY AGAIN WITH THE MAX PARTICIPATION AT $32 MILLION. ANNOUNCED, MAX PARTICIPATION OF 12. DEL MAR, EVEN THOUGH IT IS STATED AT 7, WE DO PROJECT TO CREATE ROUGHLY A LITTLE BIT LESS THAN 7. THAT IS WHAT ADDS UP TO THAT $30 MILLION -- SORRY. $52MILLION INCENTIVE CAP. SO WHAT HAS HAPPENED, WHAT'S NEXT, AND WHERE ARE WE? I DO LIKE TO CORRECT THAT. WHAT HAS ALREADY HAPPENED IS THAT THE CITY ALREADY CREATED AN ORDINANCE BACK IN 2024 OF OCTOBER. THE INTERLOCAL AGREEMENT WAS APPROVED BY CITY COUNCIL AND THIS IS THE 10-25-24. THE BOARD MEMBERS WERE ALREADY APPOINTED. AS YOU MAY RECALL EARLIER, I DID MENTION WE DID HAVE OUR FIRST MEETING LAST MONTH ALREADY. AND THE BOARD ITSELF TOOK ACTION IN THIS LAST MEETING DURING THEIR MEETING TO APPROVE THE PROJECT AND FINANCING PLAN. SO THE STEPS, THE WAY THEY GO, THE BOARD FIRST APPROVES THE PROJECT AND FINANCING PLAN AND IT GETS TAKEN HERE TO CITY COUNCIL FOR FINAL APPROVAL. AFTER THAT, WE ARE ABLE TO ENTER INTO AN INTERLOCAL AGREEMENT -- SORRY. INTO A DEVELOPMENT AGREEMENT WITH THE DEVELOPER ONCE THE PROJECT AND FINANCING PLAN HAS BEEN APPROVED. WE ARE STILL IN NEGOTIATIONS WITH DEL MAR AND THAT NEEDS TO BE FINALIZED. AND THE NUECES COUNTY DOES NEED TO APPOINT THEIR -- SORRY. THAT'S TAKING PLACE. SO THIS IS THE LAST FINAL TWO ITEMS THAT NEED TO TAKE PLACE. LIKE I SAID, ONCE AND IF THE CITY COUNCIL CHOOSES TO APPROVE THE PROJECT AND FINANCING PLAN TODAY, THEN WE MOVE INTO THE INTERLOCAL AGREEMENT WITH DEL MAR COLLEGE AND WE MOVE FORWARD WITH THE DEVELOPMENT AGREEMENT WITH THE DEVELOPER. WITH THAT, I DO LIKE TO CLOSE IT OUT AND OPEN IT UP FOR COUNCILWO MAN PAXSON. >> Paxson: THANK YOU, MAYOR. THANK YOU FOR YOUR PRESENTATION ARTURO. I KNOW YOU MENTIONED THAT THE COUNTY WAS TAKING AN ACTION, SO IF YOU'LL KEEP US ABREAST ON THE DEVELOPMENTS THERE. AND ONCE DEL MAR FINALIZES, I KNOW OUR BOARD ISN'T GOING TO MEET QUITE AS FREQUENTLY UNLESS THERE'S UPDATES, SO IF YOU CAN KEEP US ON THE LOOP ON THAT, I'D APPRECIATE THAT. OTHER THAN THAT, THAT WAS -- THAT WAS MY ONLY COMMENT. BUT I MOVE FOR APPROVAL. COUNCILMA N SCOTT? >> Scott: ANYBODY HERE FROM THE DEVELOPMENT GROUP? >> NOT TODAY, NO, SIR. >> Scott: WOULD YOU FIND A NICE, CHEAP GROUP AND SEND IT TO THEM FOR THEIR TENACITY AND THEIR PERSEVERANCE. I DON'T WANT TO IMPLY THIS HAS GONE ON A LONG TIME, BUT CAROLYN AND I WERE DELIBERATING THIS YEARS AGO, AND SO I THINK IT'S A GOOD PROJECT AND I'M JUST GLAD THEY STUCK IT OUT. ISN'T THERE AN INCENTIVE TO GET THIS GOING SOONER RATHER THAN LATER, BECAUSE 95% -- THE FIRST YEAR, YOU KNOW, SO... DO WE HAVE A SENSE OF WHERE THEY'RE AT IN THEIR PROCESS? >> SO THEY'RE STILL -- WELL, LAST WE SPOKE FROM THEM, THEY'RE WAITING FOR SOME INFORMATION ON THE DEMAND FOR HOUSING AND THEY'RE IN DESIGN, SO -- BUT, YES, WHAT YOU MENTIONED EARLIER, IT BENEFITS THEM TO START AS EARLY AS POSSIBLE. >> Scott: RIGHT. >> BECAUSE WE ARE UNDER A TIMELINE ALREADY SINCE THE TIRZ HAS ALREADY BEEN CREATED, SO THAT 20-YEAR HAS ALREADY STARTED AND THAT TRICKLE DOWN EFFECT -- OR THAT REDUCTION BEGINS ESSENTIAL LYSINS THE CREATION OF THE TIRZ, SO, YES, THEY DO HAVE AN INCENTIVE TO CONTINUE AS QUICKLY AS POSSIBLE. >> Scott: OKAY. NOW, MY ONE PERSONAL INTEREST S THERE A STOPLIGHT, DO THEY PLAN A STOPLIGHT ON ENNIS JOSLIN? IS THAT PART OF THE DEVELOPMENT AGREEMENT? >> YES, SIR. >> Scott: THERE IS. HEY, CYCLISTS CARE, MAN. ANY HOW, I KNOW THEY'RE NOT HERE, BUT PLEASE PASS ON, THANK THEM FOR THEIR PERS PERSEVERANCE. WONDERFUL REUSE OF A PIECE OF PROPERTY THAT'S SAT IDLE FOR A DECADE. >> WILL DO, SIR. >> Scott: YEAH, THANKS. COUNCILWO MAN VAUGHN? >> Vaughn: MY LINE OF QUESTION IS ABOUT LIKE HIS IS. THIS PROJECT HAS BEEN ON FOR A VERY LONG TIME. I REMEMBER WHEN IT STARTED AS WELL. ARE YOU IN CONTACT WITH HIM ALL THE TIME? DOES HE TELL YOU -- IS THERE A START DATE, A MONTH THAT HE'S EVEN THINKING? >> WE HAVE NOT BEEN GIVEN A SPECIFIC MONTH, BUT WE ARE IN COMMUNICATION, AS I MENTIONED THE LAST COMMUNICATION WE HAD WITH HIM WAS THE LAST MEETING WHICH TOOK PLACE LAST MONTH, 7/2. SO WE CAN DEFINITELY REACH OUT TO YOU AND TRY TO GET A MORE ACCURATE DATE ON THE -- >> Vaughn: A MONTH, A TIME, SIX MONTHS, THREE MONTHS, JUST -- >> YEAH, AND AS I MENTIONED THROUGH THE PRESENTATION, IF THERE IS THAT CLAUSE IF ANYTHING WERE TO NOT MOVE FORWARD, THEN AGAIN JANUARY 2027 THE B BOARD ITSELF WOULD BE ABLE TO DETERMINE IF THIS IS SOMETHING WE SHOULD CONTINUE FORWARD. >> Vaughn: THANK YOU. COUNCILWO MAN CAMPOS. >> Campos: I THINK THAT WAS BASICALLY WHAT MY QUESTIONING WAS, WAS WHERE IS THIS DEVELOPER? I REMEMBER WHEN HE WAS HERE TRYING TO GET THIS PASSED, AND NOW IT'S BEEN AT LEAST A YEAR OR -- GOING TO BE AT LEAST A YEAR. AND I'VE -- I PASS BY IT AND I SEE NOTHING, YOU KNOW. NOTHING HAPPENING. AND I'M JUST -- YOU KNOW, I'M HOPING THAT MAYBE THE NEXT TIME -- WHEN WE EVER ACTUALLY HEAR FROM THE DEVELOPER? IS IT JUST WITH THE BOARD MEMBERS THAT HE WOULD MEET WITH? >> I'M SORRY. WHAT WAS THE QUESTION. >> Campos: MY QUESTION IS WOULD THE DEVELOPER EVER COME TO CITY COUNCIL TO BRIEF US OR TO LET US KNOW WHERE HE IS AT ON HIS PROJECT? >> I'M SURE WE CAN GET THE DEVELOPER. >> Zanoni: YEAH, WE CAN ASK HIM COUNCILWOMAN. >> Campos: OKAY. BECAUSE I'D LIKE TO HEAR IT FROM HIM. HE WAS SO EAGER TO GET THIS PROJECT GOING AND NOW THAT IT'S BEEN APPROVED, WE HEAR NOTHING, CRICKETS, SO I'D REICH LIKE TO HEAR FROM THAT DEVELOPER. THANK YOU. >> YES, MA'AM. COUNCILMA N BARRERA? >> Barrera: THANK YOU, MAYOR. JUST -- JUST TO DOVETAIL, THIS IS A GREAT PROJECT. I MEAN, HOPEFULLY IT COMES TO FRUITION AND I KNOW STAFF HAS PUT A LOT OF TIME AND WORK INTO IT. I KNOW IT'S PROBABLY BEEN A DECADE, BUT, , YOU KNOW, I'M JUST CURIOUS, AT ONE TIME, HEATHER, WE TALKED ABOUT BECAUSE WE WOULD HAVE THE DEVELOPER-INITIATED TIRZ AND THERE WOULD BE A LOT OF STAFF TIME PUT INTO IT AND WE'D -- AND THEN THE PROJECT -- I MEAN, I WAS ONE THAT BROUGHT -- WENT TO IF WE PUT A TON OF TIME INTO IT AND THE PANDEMIC HIT US. IS THERE ANYTHING THAT -- BUSINESS PRACTICE THAT WE MAY INCORPORATE SO THAT WAY THERE'S A FEE ASSOCIATED OR A TIMELINE THAT WE PUT INTO EFFECT, BECAUSE WE'VE OBVIOUSLY PUT HOURS UPON HOURS AND LEGAL WORK INTO THIS, AND, YOU KNOW -- AND I'M NOT TALKING ABOUT THIS PARTICULAR PROJECT. YOU GUYS HAVE DONE YEOMAN'S WORK, BUT I'M JUST CURIOUS, ARE WE GOING TO INC.R INCORPORATE IN THAT, SO THAT WAY WE'RE PRIORITIZING OURSELVES WELL. >> Hulbert: HEATHER HULBERT, THAT IS CHARGED TO THE TIRZ FOR THE FIRST COUPLE OF YEARS THAT ARE BEING COLLECTED. YOU KNOW, THE ONE THAT YOU TALKED ABOUT EARLIER, WE DID -- IT WAS ABOUT $50,000 WORTH OF STAFF TIME AND PROFESSIONAL SERVICES THAT WAS CHARGED TO THAT TIRZ AND WE RECOVER THAT MONEY BACK. >> Barrera: OKAY. >> Hulbert: BUT WE DON'T HAVE A DEFINED POLICY. THAT'S ONE OF THE THINGS WE ARE WORKING ON CREATING A TIRZ POLICY THAT DEFINES THAT A LITTLE BIT BETTER. AND WE CAN LOOK AT POSSIBLY JUST LIKE WE DO WITH PIDZ CHARGING A FEE UP FRONT TO BE ABLE TO DRAW OFF OF AND PUT THOSE EXPENSES AGAINST. >> Barrera: ALL RIGHT W THAT, I SECOND THE MOTION FOR APPROVAL. COUNCILMA N ROY? >> Roy: HEATHER, MY QUESTION IS -- I AGREE WITH THE OTHER COUNCILMEMBERS IN TERMS OF THE TIME FRAME. IT'S BEEN A LONG TIME. >> Hulbert: YES. >> Roy: AND CONSIDERING THE FACT THAT IT'S BEEN A LITTLE BIT OF TIME, AND I THINK LAST TIME IT'S BEEN A LITTLE BIT OF TIME SINCE JEFF BLACKARD'S COME FORWARD AND TALK TO US. WHEN YOU HAVE A PROJECT LIKE THIS AND THE TIME HAS GONE BY LIKE IT HAS, IN TERMS OF -- I KNOW PEOPLE'S FINANCIALS CHANGE ALL THE TIME, BUT IN TERMS OF UPDATING YOUR DOCUMENTATION, LOOKING AT THEIR FINANCES, MAKING SURE -- YOU KNOW, NORMALLY ON MY SIDE OF THE BUSINESS WHEN YOU GET READY TO CLOSE ON A COMMERCIAL PROPERTY, ONE OF THE LAST THINGS THAT YOU DO IS YOU CHECK THEIR FINANCIALS TO MAKE SURE THAT THERE HASN'T BEEN A CHANGE IN THE STATUS OF THE ORGANIZATION. >> Hulbert: YES. >> Roy: AND SO WHEN'S THE LAST TIME YOU'VE BEEN ABLE TO LOOK AT THOSE DOCUMENTS? >> Hulbert: SO WE HAVEN'T REVIEWED THOSE DOCUMENTS SINCE WE FIRST WENT THROUGH THE CREATION. THE DEVELOPER HAS INDICATED IT WILL PROBABLY BE ANOTHER 12 TO 18 MONTHS BEFORE THEY WOULD START MOVING ANY TYPE OF DIRT, BUT WE CAN DEFINITELY WALK BACK WITH THEM -- THEY HAVE MENTIONED THAT FINANCING IS AN ISSUE, JUST BECAUSE OF THE CURRENT ECONOMIC ENVIRONMENT, BUT WE CAN DEFINITELY SWING BACK AROUND WITH THEM AND LOOK AT THAT AGAIN. >> Roy: NORMALLY WHEN A BANK GIVES A LETTER OF APPROVAL, IT'S FOR A SPECIFIC PERIOD OF TIME, AND WE'RE SITTING HERE -- THIS PROJECT'S BEEN LINGERING, SO I DO RECOMMEND THAT WE TAKE A LOOK AT THAT. >> Hulbert: SURE. >> Roy: BECAUSE THE LAST THING WE WANT DO IS WE'VE GOT EVERYBODY EXCITED ABOUT THIS PROJECT AND THEN ALL OF A SUDDEN THERE'S AN ISSUE BECAUSE MAYBE, YOU KNOW, SOMETHING'S NOT THERE THAT POSSIBLY WAS THERE IN THE PAST. >> Hulbert: SURE. >> Roy: SO I WOULD APPRECIATE IF WE CAN LOOK INTO THAT AND COME BACK AND BRIEF THE COUNCIL. >> Hulbert: DEFINITELY CAN. >> Roy: THANK YOU. >> Mayor Guajardo: SO I'M GOING TO GO AHEAD AND OPEN PUBLIC ACCIDENT ON ITEM NUMBER 12. >> HELLO, MARK MÜNSTER, CORPUS CHRISTI. I LIVED RIGHT ALONG THIS GOLF COURSE THAT'S CLOSED FOR MORE THAN 10 YEARS WHILE I WAS STILL AT MY PARENTS' HOUSE, AND SO I REMEMBER WHEN THERE WAS A LOT OF STUFF GOING ON AND I JUST WANT TO SAY, IT'S A REALLY NICE AREA RIGHT NOW TO JUST -- A LOT OF PEOPLE GO ON WALKS. I KNOW MY FAMILY DOES, LIKE, EVERY DAY, AND IT'S REALLY GREAT THE WAY IT IS JUST BEING LIKE NATURE. AND I HAVE CONCERNS ABOUT, LIKE, A LOT OF PEOPLE MOVING IN AND LIVING THERE, LIKE JUST TRAFFIC AND PLUMBING, SEWAGE. I WOULD -- I JUST QUESTION HOW, LIKE, THAT WOULD WORK WITH JUST ADDING ALL THAT IN THERE. AND THERE'S HOUSES ALL ALONG THIS AND AS PEOPLE HAVE SAID, IT'S BEEN NOTHING DONE FOR A LONG TIME, AND THEN THEY JUST SAID IT WOULD BE 12 TO 18 MONTHS BEFORE ANYTHING HAPPENS AND THERE WAS QUESTIONS ABOUT REVIEWING DOCUMENTS. SO, YEAH, I JUST WANT TO SPEAK UP FOR PEOPLE THAT LIVE ALONG THERE, I KNOW THERE WAS A LOT OF PEOPLE BACK IN THE DAY THAT HAD CONCERNS AND JUST WANTED TO SPEAK UP ABOUT THAT, SO THANK YOU. >> Mayor Guajardo: THANK YOU, MR. MÜNSTER. >> MAYOR, CITY COUNCIL, DEBBIE LINDSAY OH, PAL, I LIVE AT 1223 SAND PIPER DRIVE IN CORPUS CHRISTI. IT WAS REALLY NICE TO SEE THAT YOU HAVELOPMENT PLANS. MY QUESTION REALLY FOCUSES ON A LITTLE BIT FURTHER WITH COUNCILMEMBER SCOTT IN THAT THIS IS A DENSE DEVELOPMENT. THERE ARE LIMITED ACCESS POINTS, IT IS DIRECTLY ADJACENT TO AN EXISTING NEIGHBORHOOD AND THERE'S SOME DISCUSSION ABOUT SOME ADDITIONAL HIGH DENSITY POSSIBILITY GROWTH AT THE CORNER OF RODD FIELD ROAD -- NOT RODD FIELD, ENNIS JOSLIN AND NILE. AND I AM CURIOUS WHETHER OR NOT IN PART OF THE PLANNING WE'RE LOOKING AT THE TOTAL TRAFFIC FLOW. I THINK ONE TRAFFIC LIGHT'S GREAT. I DON'T KNOW THAT THAT'S GOING TO BE ENOUGH AT TOTAL BUILDOUT WHEN YOU LOOK AT THE CAPTIVE AREAS IN WHICH THIS DEVELOPMENT WILL BE GROWING. AND I WOULD JUST ENCOURAGE YOU TO TAKE A LOOK AT THE BROADER FOOTPRINT OF WHAT BARISI VILLAGE MIGHT BE AND HOW THAT MIGHT INTERACT WITH ANY LARGE-SCALE TRAFFIC PLANS THAT MIGHT BE COMING DOWN THE ROAD AT THAT AREA. IT'S PRETTY CONSTRAINED TODAY AT PARTICULAR HOURS OF THE DAY WHEN YOU'RE TRYING TO GET PAST OUR FINE STUDENTS AT A&M CORPUS CHRISTI. JUST WANTED TO BRING THAT TO YOUR ATTENTION TO CONSIDER FOR LONGER RANGE PLANNING. THANK YOU. >> Mayor Guajardo: THANK YOU. ANYONE ELSE, ITEM NUMBER 12? OKAY. I'M GOING TO -- OH, GO AHEAD. YEAH. >> YES. MY NAME'S ALEX BENAVIDES AND I'M FROM DISTRICT 3. I JUST WANTED TO AGREE WITH THE ENVIRONMENTAL ASPECT OF TRYING TO KEEP IT AS SAFE TO THE ENVIRONMENT AS POSSIBLE. ALSO I FEEL LIKE IT TAKES AWAY RESOURCES FROM OTHER AREAS SUCH AS THE PROJECTS THAT WE'RE DOING WITH THE PARKS. THE SURROUNDING AREA, AS MENTIONED EARLIER, THEY DON'T HAVE VIABLE SIDEWALKS FOR THE DISABLED TO EVEN GET TO THOSE PARKS, SO IT JUST FEELS LIKE WE'RE ISOLATING THE REST OF THE DISTRICTS TO BUILD UP AN AREA WHEN THE OTHER DISTRICTS DON'T EVEN HAVE SIDEWALKS OR MUCH POTABLE WATER. SO THAT'S MY CONCERN. >> Mayor Guajardo: THANK YOU, MR. BENAVIDES. >> THANK YOU. >> Mayor Guajardo: WOULD INELSE LIKE TO MAKE PUBLIC COMMENT ON ITEM NUMBER 12? OKAY. THERE BEING NO ONE, WE WILL CLOSE PUBLIC COMMENT AND I WILL ENTERTAIN A MOTION -- OR DID WE HAVE ONE? >> YES. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. COUNCILWOMAN, YOU HAD A QUESTION COMMENT? >> Paxson: THANK YOU, MAYOR. PETER, I THINK THAT WE HAD A PUBLIC COMMENT THAT ADDRESSES SOME VALID CONCERNS. I KNOW THAT THIS IS A TIRZ, SO IT'S A LITTLE BIT DIFFERENT THAN HOW WE WOULD BE ABLE TO FACILITATE AN INCREASE IN SIDEWALKS AND THINGS LIKE THAT FOR OUR OTHER COMMUNITY AREAS, WHICH I KNOW ARE PRIORITIES TO US, SO IF WE COULD HAVE POTENTIALLY SOMEONE WHO CAN SPEAK TO THE DIFFERENCES HERE TO CLARIFY THAT THIS IS KIND OF A TOTALLY DIFFERENT BALL GAME ON IT, AND THOSE ARE EQUAL PRIORITIES, BUT IN DIFFERENT FUNDS, IF YOU WILL. >> Zanoni: RIGHT. >> Paxson: THANK YOU. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. OKAY. THE MOTION CARRIES. ITEM NUMBER 13 IS A MOTION FOR CONSIDERATION, DISCUSSION AND POSSIBLE ACTION TO AMEND THE CURRENT FISCAL YEAR 2025 ADOPTED BUDGET AND THE FISCAL YEAR 2026 PROPOSED BUDGET OF THE CITY OF CORPUS CHRISTI TO PROHIBIT THE USE OF ANY ADDITIONAL CITY OF CORPUS CHRISTI FUNDING AND/OR SUPPORT PAYABLE TO OR FOR THE BENEFIT OF THE UNITED CORPUS CHRISTI CHAMBER OF COMMERCE AS REQUESTED BY CITY COUNCILMEMBERS CAROLYN VAUGHN, ERIC CANTU AND KAYLYNN PAXSON. >> Vaughn: OKAY. THE REASON THAT I PUT THIS ON THE AGENDA IS BECAUSE I FEEL LIKE WE HAD TWO NEW COUNCILMEMBERS BULLIED BY THE SCCHAMBER. AND THERE'S A RIGHT WAY TO DO THINGS AND THERE'S A WRONG WAY. THIS WAS THE WRONG WAY, FARCE I'M CONCERNED. YOU NAME IS UNITED CHAMBER OF COMMERCE. THERE WAS NOTHING UNITED ABOUT IT AT ALL. IT WAS VERY DIVISIVE AND IT'S ASHAME THAT'S THE WAY IT WENT. THE CITY GIVES A LOT OF MONEY TO THE CHAMBER, THEY REALLY DO, AND THAT'S TAXPAYER MONEY. AND I DON'T THINK ALL THE TAXPAYERS APPRECIATE THE WAY THINGS HAVE GONE. I'M JUST CURIOUS, ARE Y'ALL REGISTERED LOBBYISTS WITH THE CITY? IS THE CHAMBER -- CAN ANYONE HERE KNOW THAT OR WITH THE TEXAS ETHICS? >> [OFF MIC] >> Mayor Guajardo: WHO WOULD LIKE TO COME UP FROM THE CHAMBER? >> GOOD AFTERNOON, MAYOR AND COUNCIL. AR REOL LA, DISTRICT 3. YES MA'AM. >> Vaughn: ARE Y'ALL LOBBYISTS? ARE Y'ALL REGISTERED. >> WHEN YOU SAY Y'ALL, ARE YOU REFERRING TO THE ENTITY. >> Vaughn: THE SCHAIM BER. >> I MYSELF AM NOT A REGISTERED LOBBYIST. THAT'S NOT MY PRIMARY. >> Vaughn: IS THE CHAMBER REGISTERED AS A LOBBYIST WITH THE CITY OR TEXAS ETHICS. >> TEXAS ETHICS OR LOCALLY HERE IN CORPUS CHRISTI. >> Vaughn: ARE YOU. >> AS AN ORGANIZATION, WE DON'T HAVE TO REGISTER AS LOBBYIST. >> Vaughn: YEAH, I KNEW THE ANSWER. WHAT IS THE GROUP MY LAND, MY FUTURE. >> THAT IS A DEDICATED FUND TO PROMOTE ECONOMIC OPPORTUNITIES IN THE COASTAL BEND. >> Vaughn: IS THAT FUNDED BY THE INDUSTRY? >> IT'S A GOOD CROSS-SECTIONS OF DONATIONS. >> Vaughn: OKAY. THE REASON IT CONCERNS ME, BECAUSE TO ME, WHAT Y'ALL WERE DOING WAS LOBBYING. AND I DON'T DISAGREE WITH Y'ALL COMING UP HERE AND HAVING AN ISSUE, NOT AT ALL. Y'ALL HAVE EVERY RIGHT TO ADVOCATE FOR AN ISSUE, BUT YOU DON'T HAVE A RIGHT TO ADVOCATE AND .2 FINGERS AT TWO DIFFERENT PEOPLE. >> THAT WAS NOT OUR INTENT. . >> Vaughn: NO, WELL, IT HAPPENED. AND SINCE YOU'RE UP HERE, AL, AND I DON'T HAVE ANYTHING AGAINST YOU, I'M SURE YOU'RE A NICE GUY. >> THANK YOU. >> Vaughn: BUT I DON'T LIKE IT WHEN THAT HAPPENS. IT'S WRONG. AND THE CHAMBER NEEDS TO UNDERSTAND THERE ARE CONSEQUENCES FOR ACTIONS. THERE ARE. >> YEAH. >> Vaughn: AND FOR YOU TO SIT HERE AND WE HAD LYLE LARSON HERE SPEAKING ON BEHATCH OF EVANGELINE AND FOR YOU TO CALL IF CHAMBER PRESIDENT IN SAN ANTONIO AND BASICALLY TRASH HIM. >> I KNOW JEFF WEBBSTER PRETTY WELL, THE CEO FROM THE SAN ANTONIO CHAMBER OF COMMERCE, AND CERTAINLY WE HAD A DISCUSSION REGARDING OUR CONCERNS. >> Vaughn: YES, YOU DID. AND HE IS A VERY GOOD FRIEND OF LYLE LARSON, BY THE WAY. >> YES, I'M AWARE. >> Vaughn: THAT WAS WRONG. I'M NOT TRYING TO TREAT YOU LIKE A CHILD, I'M NOT GOING TO DO THAT, BUT THE STAMP THAT YOU PUT OUT WITH LYLE'S -- THAT WAS JUST MEAN. >> IT'S A PERSONAL ACCOUNTABILITY ON THAT MYSELF, TOO. THIS HAS GOTTEN VERY DIVISIVE, VERY POLITICAL ON ALL SIDES AND FOR OUR PART, WE DO APOLOGIZE AS WELL. >> Vaughn: I JUST THINK IT WAS LOBBYING BECAUSE Y'ALL ARE OBVIOUSLY GETTING MONEY TO DO ALL OF THIS, AND IT'S A CONCERN TO ME THAT THE INDUSTRY HAS GOT ON BOARD WITH THIS AS WELL. SO -- AND DOESN'T SURPRISE ME, BECAUSE, WELL, I'M NOT GOING TO SAY WHEY WAS GOING TO SAY. I PUT IT ON HERE BECAUSE OF THOSE TWO COUNCILMEMBERS THAT ARE NEW AND THEY SHOULDN'T HAVE HAD TO PUT UP WITH THAT. I PROBABLY WOULD HAVE PUT IT ON IF ROLAND'S NAME WAS ON THERE MAYBE. I'M JUST KIDDING, I WOULD HAVE. BUT THAT'S THE PROBLEM THAT I HAVE. NOW, WHATEVER THEY DECIDE TO DO WITH THIS, BECAUSE I WANT IT FOCUSED ON Y'ALL TO SEE WHAT YOU DO GET, BECAUSE IT'S TAXPAYER MONEY, AND Y'ALL SHOULD BE ACCOUNTABLE FOR THAT. >> I AGREE, YES, MA'AM. >> Vaughn: IT WAS JUST WRONG WHAT YOU DID. AND I THINK YOU KNOW THAT NOW, BECAUSE Y'ALL ARE CONCERN BECAUSE THE FINANCE -- YOU COULD LOSE THAT. >> I'M THANKFUL YOU IDENTIFIED THE MY TOWN CAMPAIGN. THAT IS WHERE WE'VE BEEN USING THOSE FUNDS FROM. IT'S NOT BEEN FROM ANY OTHER POOL OF MONEY. >> Vaughn: YEAH. I KNOW YOU'VE REACHED OUT TO SOME OF THE COUNCILMEMBERS, YOU'VE REACHED OUT TO ME. THERE WAS NO REASON FOR ME TO CALL. YOU DID TARGET ME ON THE WEEKEND, IT DIDN'T BOTHER ME, I CAN HANDLE IT, AND THEY CAN TOO, BUT YOU SHOULDN'T HAVE TARGETED THEM. I'M GOING TO PIVOT AND WHATEVER THEY WANT TOO DO, I'M GOING TO SUPPORT. I DON'T KNOW WHAT THAT'S GOING TO BE, BUT I'M GOING TO PIVOT TO THEM. >> THANK YOU FOR YOUR QUESTIONS. COUNCILWO MAN PAXSON. >> Paxson: I DO WANT TO START BY ACKNOWLEDGING COUNCILWOMAN VAUGHN, IN MY SHORT CAREER WORKING WITH HERE, SHE HAS EXHIBITED NOTHING BUT TENACITY, COURAGE AND THE UTMOST CHARACTER TO STAND UP FOR ALL ITEMS FOR THIS CITY THAT SHE BELIEVES IS JUST. THAT'S WHAT WE'RE HERE TO DO. SO I COMMEND MY COLLEAGUE, COUNCILWOMAN VAUGHN, FOR REACHING OUT AND SPEARHEADING THIS EFFORT. YOU KNOW, ANGER IS A SECONDARY EMOTION. THERE WAS A LOT OF ANGER IN THE WHOLE COMMUNITY ABOUT THIS. MY PRIMARY REACTION, THOUGH, IS I'M SADDENED. I DON'T LIKE WHEN ANY OF OUR PARTNERS TAKE OPPORTUNITY TO DIVIDE. THE NAME OF THIS ORGANIZATION IS THE UNITED CHAMBER. THE NAME OF OUR ORGANIZATION IS THE CITY OF CORPUS CHRISTI, THE BODY. BOTH OF OUR MISSIONS SHOULD BE TO UNITE AND SERVE THIS COMMUNITY. I DON'T MIND IF YOU SINGLE ME OUT. I DON'T MIND IF TEXT MESSAGES GO OUT SPECIFICALLY FOR ME. I DON'T MIND IF THERE'S PAGES DEDICATED TO SPONSORING ADS AGAINST ME, I CAN TAKE ALL THAT. WHAT BOTHERED ME THE MOST IS TO SEE THAT A POTENTIAL PARTNER THAT THE CITY WAS ENGAGING TO DO BUSINESS IN WAS SLANDERED PUBLICLY BY LEADER SLIP IN YOUR ORGANIZATION. TO ME, IF I WAS REPRESENTING A PRIVATE ORGANIZATION SITTING HERE, I WOULD HAVE TO SERIOUSLY RECONSIDER MY BUSINESS DEALINGS WITH ANOTHER PARTNER WHO HAD NO ISSUE SLANDERING SOMEONE I'M DOING BUSINESS WITH. THAT'S A SERIOUS PROBLEM, BECAUSE IF WE'RE PARTNERS, I CONSIDER US BOTH EXTENSIONS OF EACH OTHER, WE SHOULD BE WORKING TOGETHER ON THINGS. THAT WAS MY BIGGEST COMPLAINT IN THIS ENTIRE PROCESS. I APPRECIATE Y'ALL REACHING OUT, SAYING, HEY, I'D LIKE TO SIT DOWN AND TALK TO YOUR PRIORITIES AS A NEW COUNCILMEMBER. AND I STILL THINK THAT THAT WAS GREAT. I'D LIKE TO SCHEDULE THAT. BUT THAT DOESN'T REACH ACROSS THE TABLE AND SAY, WE'D LIKE TO TALK TO YOU ABOUT OURS. I'VE BEEN A HUGE ADVOCATE FOR PUBLIC PARTICIPATION AND MESSAGING, AND I THINK IT'S WELL WITHIN THE SCOPE OF A CHAMBER TO COMMUNE DATE WITH ALL LEVELS OF LEGISLATIVE ENTITIES TO EXPRESS THEIR CONCERNS, INTERESTS AND PLY ORTIES. I -- PRIORITIES. I COME FROM A BACKGROUND SUPPORTING BUSINESS ASSOCIATIONS AND CHAMBERS, I'M ON BOARD WITH THAT 100%. BUT DON'T THINK WE'RE NOT MADE AWARE WHEN THIS UNDERCURRENT OF BACKBITING, DEROGATORY INFORMATION AND SLANDER IS BEING SAID. THAT'S NOT HOW WE'D LIKE TO DO BUSINESS. THAT MIGHT BE OKAY IN SOME COMMUNITIES, BUT I HOPE TODAY IT'S A STATEMENT THAT IS NOT INTERESTED HERE. THAT'S NOT HOW WE WANT TO DO BUSINESS. I HOPE THAT TODAY SERVES A PURPOSE TO REALIGN, TO MAKE SURE THAT WE KNOW GOING FORWARD, WE REACH ACROSS THIS TABLE WITH RESPECT. I EARNESTLY WANT TO SERVE OUR BUSINESS COMMUNITY, ESPECIALLY OUR SMALL BUSINESSES. LARGE AND SMALL. AND ONCE THOSE TEXT MESSAGES WENT OUT, WHO DID I HEAR FROM FIRST? OUR LOCAL BUSINESSES. AND WHAT DID THEY SAY? WE'RE MEMBERS OF THE CHAMBERS, AND THAT WAS NOT OUR INTEREST. THEY DON'T LIKE IT EITHER. THEY WANT EVERYBODY TO WORK TOGETHER. YES, REACH OUT TO US WHEN YOU HAVE A PRIORITY, YES, TELL US YOUR OPINION, 100%. BUT THE OTHER PART OF THAT EQUATION IS TO RESPECT ALSO. IT NEEDS TO STOP AT THAT. TELL US WHAT YOU THINK, TELL US HOW YOU FEEL, HELP US. WE'RE AT THIS TABLE. I WANT TO FIND WATER FOR OUR BUSINESSES, THAT IS ABSOLUTELY MY EFFORT. IT MAY NOT BE THE SAME DEFINITION OF YOURS, THAT'S OKAY. TELL ME WHAT YOURS IS, BUT RESPECT THAT THAT IS OUR PRIORITY. THAT'S ALL WE'RE SAYING. SO I HAD SEVERAL PEOPLE REACH OUT. NOT A LOT ACTUALLY, BUT SEVERAL PEOPLE REACHED OUT. I'D SAY THE MAJORITY WAS IN FAVOR OF MOVING FORWARD WITH ITEM 13. THERE WAS A FEW WHO ASKED US TO RECONSIDER. I'M IN THE SPOT AS A LEGISLATOR HERE, AS WE ALL ARE, THAT I HAVE TO FIGURE OUT WITH ALL THE INFORMATION IN FRONT OF US WHAT'S THE BEST DECISION TO MOVE FORWARD. FOR ME, I'D LIKE THIS TO BE FOCUSED ON DISCUSSION AND CONSIDERATION AND, FOR ME, I'D LIKE MY COLLEAGUES TO SIDE WITH ME AND CHOOSE NOT TO TAKE AN ACTION ON THIS AT THIS POINT, BUT I DO SINCERELY HOPE THAT IT TRANSLATED ITS PURPOSE. WE WANT TO DO BUSINESS TOGETHER. LET'S LET TODAY RESET THE SCALES, WORK TOGETHER. THAT'S MY ASK. >> I APPRECIATE YOUR COMMENTARY VERY MUCH, COUNCILWOMAN. COUNCILWO MAN CAMPOS? >> Campos: THANK YOU, MAYOR. I'VE NEVER BEEN PART OF THE CHAMBER CROWD. I DON'T -- I -- YES, I HAVE OWNED A BUSINESS IN THE PAST AND I DO APPRECIATE WHAT THE SMALL BUSINESS DOES. AND LARGE BUSINESSES AS WELL AS FOR ANY COMMUNITY, BUT FOR THE CHAMBER TO SOLELY LISTEN TO THESE LARGE CORPORATIONS THAT ALREADY HAVE AN AMPLIFIED VOICE HERE IN OUR OWN CITY, AND THEN TO REACH OUT INTO THE CHAMBER AND TAKE HOLD OF WHAT YOU ALL ACTUALLY REPRESENT, WHICH, AGAIN, IS THE UNITED, YOU KNOW, CHAMBER. JUST REALLY TOOK BACK I DON'T KNOW HOW MANY STEPS FOR THE CHAMBER REALLY. OF COURSE, I -- IF I HAD THE -- YOU KNOW, I DON'T KNOW WHERE THE VOTES -- IT DOESN'T LOOK LIKE WE'RE GOING TO BE SUPPORTING THIS, BUT I WAS IN FAVOR OF LETTING THE CHAMBER KNOW THAT THIS KIND OF BEHAVIOR IS NOT TOLERATED. THIS SHOULD NOT BE TOLERATED, AND IT'S NOT EVEN -- YOU KNOW, BECAUSE WE LIVE IN A LEFT AND RIGHT -- EVEN THOUGH IT SHOULD BE ABOUT RIGHT AND WRONG, POLITICS IS ABOUT LEFT AND RIGHT. AND THESE ARE ACTUALLY ON THE RIGHT, YOU KNOW, OF MY POLITICS, THAT THE CHAMBER ACTUALLY WENT AFTER -- Y'ALL WENT AFTER YOUR OWN AND THAT, I -- IT'S HARD TO BELIEVE, BUT THIS IS WHERE INDUSTRY IS AT. THEY DON'T CARE WHAT THEY DO TO ANYONE, THEY WILL DESTROY THEM TO GET WHAT THEY WANT, WHICH IS RIGHT NOW ALL THEY CARE ABOUT IS GETTING THAT INNER HARBOR BUILT. AND IT IS DOESN'T MATTER THAT DOESN'T MATTER THAT THEY'RE NOT GOING TO PAY FOR THEIR FULL PART OF IT. IT WILL BE ON THE BACKS OF THE WORKING PEOPLE. SO, AGAIN, THIS IS REALLY TERRIBLE. AND, AL, I -- I CAN SEE THAT YOU'RE -- YOU KNOW, YOU'RE YOUR FACE AND YOUR DEMEANOR LOOKS THAT YOU'RE NOT COMFORTABLE WITH THIS, AND I ACKNOWLEDGE THAT. I'M SORRY THAT YOU ARE PLACED IN THIS SPOT, BUT THEN AGAIN, YOU ARE THE HEAD OF IT AND I BELIEVE YOU SHOULD HAVE HAD ENOUGH INTEGRITY TO HAVE SAID NO, WE'RE NOT GOING TO DO THIS. AND WE SHOULD NOT DO THIS. WE SHOULD TAKE IT TO THE WHOLE BOARD AND -- OR THE -- YOU KNOW, ALL THE MEMBERS OF THIS CHAMBER AND HAVE THEM VOTE ON IT. IT, IF THAT'S THE WAY YOU WERE GOING TO GO. BUT TO LET THESE BIG CORPORATIONS DECIDE FOR THIS CHAMBER IS SHAMELESS, SO THAT'S ALL I'M GOING TO SAY. THANK YOU. >> YES, MA'AM, THANK YOU. COUNCILMA N -- WERE YOU GOING TO SAY SOMETHING, I'M SORRY? NO AL YOU? >> NO, MA'AM. COUNCILMA N HERNANDEZ? >> Hernandez: YEAH. QUICK QUESTION ON THIS. I THINK WHEN COUNCILWOMAN VAUGHN WAS TALKING ABOUT LOBBYIST, I THINK MORE LIKE POLITICAL ACTION COMMITTEES. ARE ANY OF THE -- I MEAN, IT'S REALLY ABOUT HOW YOU PAY FOR THIS AND WORDS CAMPAIGN. I COULDN'T FIND "MY TOWN, OUR FUTURE" ON THE TEXAS ETHICS COMMISSION AS A POLITICAL ACTION COMMITTEE. >> AS A NONPROFIT ORGANIZATION, WE HAVE THE ABILITY TO ENGAGE IN ISSUE ADVOCACY DIRECTLY FROM OUR OWN FUNDS. >> Hernandez: OKAY. [SIMULTANEOUS SPEAKING]. >> THIS TUSN'T QUALIFY AS A STATE VALID REFERENDUM OR AN ELECTION. THIS IS A CURRENT ITEM THAT YOU GUYS ARE DISCUSSING AS A COUNCIL, AND WE STILL SOMEWHERE THE ABILITY TO ADVOCATE FOR OUR POSITION IN THAT. >> Hernandez: NO, I UNDERSTAND THE ADVOCACY COMPONENT. >> YES, SIR. >> Hernandez: WHEN WE HAD THIS DISCUSSION YESTERDAY, IT WAS ABOUT IF YOU HAD JUST PUT OUT A TEXT WITH YOUR ADVOCATING YOUR POSITION AS -- IT WOULDN'T HAVE BEEN -- I DON'T THINK IT WOULD HAVE BEEN AN ISSUE. BUT WHEN YOU ADDED A POLITICAL CANDIDATE OR -- >> AND THAT'S WHERE IT GETS DIFFERENT. WE'RE NOT ASKING SOMEONE TO VOTE FOR OR AGAINST A CANDIDATE THEMSELVES. >> Hernandez: OKAY. >> REGARDING THE POSITION. >> Hernandez: I'M JUST SAYING, IT'S A LITTLE GRAY AREA THERE, SO THEN YOU END UP HAVING THE QUESTIONS LIKE, ARE THEY TAKING A POLITICAL POSITION OR SOMETHING ALONG THOSE LINES. SO I JUST -- YOU KNOW, I WOULD SAY -- >> YES, SIR. THIS POLICY DISCUSSION HAS BECOME VERY POLITICAL, AND I THINK THOSE ARE THE CHALLENGES WE'RE DISCUSSING HERE TODAY. >> Hernandez: OKAY. SO I WILL GO ALONG WITH WHAT COUNCILWOMAN PAXSON HAD RECOMMENDED AND GO WITH HER RECOMMENDATION. THANK YOU. >> YES, SIR. COUNCILMA N CANTU? >> Cantu: THANK YOU, MAYOR. FIRST OF ALL, THANK YOU, COUNCILWOMAN VAUGHN FOR STEPPING UP AND LOOKING OUT FOR US. I DON'T HAVE NO PROBLEM WITH THE PRESSURE. I THINK I'M GETTING PRESSURED EVERY DAY. AND A TEXT MESSAGE DIDN'T REALLY BOTHER ME. THANK YOU FOR NOT PUTTING MY CELL PHONE NUMBER ON THERE. BUT IN ALL REALITY, THAT TEXT MESSAGE PROBABLY GOT TWO PHONE CALLS. I THINK IT WAS A WASTE OF MONEY FOR YOU GUYS. I HAVE NO ISSUE WITH YOU AT ALL. YOU HAVE MY PHONE NUMBER, I DON'T KNOW WHY YOU GUYS DIDN'T REACH OUT TO ME AND SAY, HEY, WHAT'S YOUR POSITION ON THE INNER HARBOR, LET'S TALK ABOUT IT, DISCUSS IT. I NEVER GOT A PHONE CALL OR E-MAIL ABOUT IT. I THINK I'M WITH COUNCILWOMAN PAXSON IN NOT MOVING FORWARD WITH THIS. I DON'T THINK IT'S THE WHOLE CHAMBER'S FAULT. I THINK YOU MADE SOME MISTAKES. ALL I'M ASKING IS APOLOGY NOT TO US, BUT APOLOGY TO MR. LARSON. I THINK THAT WAS OVERBOARD. I THINK YOU OVERDID IT. YOU KNOW, I WOULDN'T MIND NOT DOING ANYTHING ON THIS IF THERE'S AN APOLOGY TOWARDS HIM. AND FOR THE RECORD, MAYOR, YOU KNOW, THIS WASN'T NOTHING TO DO WITH YOU, YOU KNOW, WE JUST HAD TO PUT EVERYTHING ON THE AGENDA ITEM WITH THE CITY OF THE -- STATE OF THE CITY, YOU KNOW, SO IT'S NOTHING TOWARDS YOU OR ANYTHING LIKE THAT. SO THAT'S PRETTY MUCH IT. >> AND COUNCILMAN, APOLOGIES ALSO TO YOU. AND I WOULD CERTAINLY LOVE TO DISCUSS ALL THIS -- WHEN COMFORTABLE. >> Cantu: APPRECIATE IT. THANK YOU. >> UH-HUH. COUNCILWO MAN BARRERA? >> Barrera: WELL, I'M GLAD TO HEAR MY COLLEAGUES ARE WANTING TO RESCIND THEIR -- AND I HOPE I DON'T HURT. THAT'S MY THING. FIRST OFF, I'VE BEEN A MEMBER OF THE CHAMBER -- I KNOW AT LEAST FOR SURE SINCE 2012 WHEN I WENT BACK INTO BUSINESS FOR MYSELF. I DON'T THINK THE COMPANY THAT I WORKED FOR FOR FOUR YEARS WAS, BUT I HAD BEEN PRIOR. I WAS RELUCTANT TO JOIN SIMPLY BECAUSE OF INACTION. IT WAS JUST A CHEERLEADING ORGANIZATION. THE ONLY REASON I JOINED IS BECAUSE PHILLIP ASKED ME TO JOIN, IT WAS OUT OF LOYALTY AND LOYALTY TO THE BUSINESS OWNERS THAT WERE THERE. I WAS FRUSTRATED WITH THE LEADERSHIP AT THAT TIME. THEN A NEW CEO CAME IN, I THINK YOU COMPETED AT THAT SPOT. I WAS FRUSTRATED WITH THE LEADERSHIP AT THAT TIME. IT WAS ALL ABOUT SELF-PRESERVATION HAVING EVENTS TO TRY AND RAISE MONEY, NO REAL ADVOCACY. AND THEN WE HAD ANOTHER LEADER THAT DIDN'T LAST VERY LONG. AND WHAT IS IT -- AND THEN WE'VE HAD YOU. I WANT TO COMMEND YOU FOR THE AMAZING JOB THAT YOU'VE DONE ON WINDSTORM, ON THE MILITARY TASK FORCE, ON POLITICAL ENGAGEMENT IN AUSTIN, ON POLITICAL ENGAGEMENT IN GETTING YOUR MEMBERS ADVOCATED. I MEAN, HOW MANY PEOPLE DID YOU HAVE ATTEND THE CB TO ATX THIS TIME AROUND? >> 120. >> Barrera: 120. >> AND THANK Y'ALL FOR YOUR PARTICIPATION AS WELL. >> Barrera: YEAH. AND I THINK THAT HAS BEEN UNPRECEDENTED. AND I THINK IT'S BECAUSE OF THE BOLDNESS OF WHAT YOU'VE DONE TO LISTEN TO YOUR MEMBERS. AND I WANT TO COMMEND YOUR BOARD BECAUSE OF THE BOLDNESS THAT THEY'VE BECOME TO LISTEN TO THEIR MEMBERS. I KNOW THAT RIGHT NOW -- YOU KNOW, LAST YEAR -- I'M A SMALL FIRM. MY PAYROLL, NOT COUNTING ME, WAS PROBABLY ABOUT 250,000, THAT INCLUDES BENEFITS AND THE RETIREMENT FUND AND THE EDUCATION THAT WE REIMBURSE. AND, YOU KNOW, THE THING IS THAT YOU'VE WELCOMED THOSE BEST PRACTICES, AND THOSE ARE THE TYPES OF THINGS THAT YOU ADVOCATE FOR US AS SMALL BUSINESSES TO ENSURE THAT WE HAVE THE F OPPORTUNITY TO WORK WITH ALL THE OTHER BUSINESSES THAT ARE HERE WITH LARGER CORPORATION -- I DON'T DO BUSINESS WITH ANY OF THE REFINERIES, BUT I DO BUSINESS WITH THEIR VEND DOERS, AND THOSE ARE THE ONES THAT YOU ADVOCATE FOR IN THE INSTANCE. IT'S NOT JUST RIBBON CUTTINGS AND CHAMBER EVENTS AND, YOU KNOW, BANQUETS. IT'S MORE ABOUT GETTING THINGS DONE. AND I THINK FROM THIS PERSPECTIVE, I -- I -- I CONGRATULATE YOU FOR HAVING THE BOLDNESS TO BE ABLE TO ENCOURAGE MEMBERS AND THE PUBLIC TO REACH OUT TO THEIR COUNCILMEMBERS. EVERY ORGANIZATION SHOULD DO THAT. NOW, I'M SORRY THAT SOMEBODY GOT OFFENDED BY THAT. I MEAN, I GET CONTACTED ALL THE TIME, POSITIVE AND NEGATIVE. I HAD A VERY COMICAL CALL -- NOT COMICAL, SOMEBODY CALLED AND LEFT A NOT VERY NICE MESSAGE TODAY WITH REGARD TO DESALINATION, WHAT IS IT -- BUT, YOU KNOW, I WELCOME THAT. THEY LIVE IN DISTRICT 3 AND THEY CALL ME ON A REGULAR BASE. WHAT IS IT -- THEY'VE SAID RECALL BEFORE. THAT'S PART OF THE GAME. I WANT TO COMMEND YOUR BOARD FOR WHAT YOU'VE DONE. AND I THINK -- I WONDER, IS THE INDIVIDUAL -- I KNOW YOU'RE SARCASTIC JUST LIKE ME, SO THAT'S PERHAPS WHY WE GET ALONG SO WELL. AND SOMETIMES I WONDER, WHEN WE INVITE AN INDIVIDUAL TO COME UP THAT IS OBVIOUSLY PAID FROM ANOTHER -- ANOTHER ORGANIZATION THEN, YOU KNOW, THEY -- AND I THINK IT -- AND MR. LARSON DID KIND OF DISPARAGE SOME OF THE CITY'S PROJECT. HE DID MAKE STATEMENTS ABOUT -- >> [OFF MIC] >> Barrera: THAT'S OKAY. HE DID MAKE NEGATIVE COMMENTS. LE SAID, YEAH, HAVE SOMEBODY ELSE DO IT. YOU GUYS ARE DOING IT THE WRONG WAY, THIS, THAT AND WHATEVER. THAT'S OKAY, HE'S ENTITLED TO MAKE THOSE STATEMENTS. BUT I JUST WANT TO SAY WHEN -- I TELL PETER ALL THE TIME, THAT THIS IS THE SEAT OF ECONOMIC DEVELOPMENT FOR THE COASTAL BEND, OUR PARTNERSHIP WITH THE PORT PROVIDES ECONOMIC DEVELOPMENT NOT ONLY FOR THE COASTAL BEND -- WHAT IS IT -- FOR THE STATE OF TEXAS, FOR THE UNITED STATES AND FOR THE WORLD. AND THAT'S A BIG RESPONSIBILITY. AND SOMETIMES PEOPLE GET THEIR FEATHERS RUFFLED AND I THINK WHEN SOME OTHER INDIVIDUALS HAVE AN OPPORTUNITY TO MAKE MONEY, THEN THEY'RE GOING TO COME UP AND SAY THINGS AT PUBLIC COMMENT. NOW, IF I -- I PROBABLY WOULD MIGHT NOT HAVE MADE THAT STATEMENT, BECAUSE TYPICALLY YOU GET A TARGET ON YOUR BACK ESPECIALLY WHEN YOU'RE BOLD, BUT I JUST DON'T WANT TO BE HERE -- I DON'T WANT TO BE PART OF THE GROUP THAT OSTRACIZES YOU, BECAUSE I THINK YOU AND YOUR BOARD ARE DOING A GREAT JOB AND THIS IS A TIME IN CORPUS WHERE WE'RE AFFECTING THE ENTIRE WORLD. AND YOU TAKE THAT RESPONSIBILITY VERY STRONGLY, AND I COMMEND YOU FOR THAT. THANK YOU FOR THE AMAZING JOB YOU'RE DOING. I APPRECIATE IT. >> THANK YOU, COUNCILMAN. COUNCILMA N ROY. >> Roy: I APPRECIATE YOU COMING FORWARD. >> YES, SIR. >> Roy: YOU KNOW, I DON'T FOLLOW SOCIAL MEDIA LIKE SOME OF MY COLLEAGUES, I THINK, BECAUSE I'M NOT EVEN AWARE THAT MUCH OF -- IN TERMS OF WHAT WAS SAID. BUT I DO KNOW ONE THING. AND THIS IS WHERE IT'S REALLY IMPORTANT. YOU KNOW, WE SIT UP HERE, THE NINE OF US, AND THERE'S A LOT OF TIMES THAT WE DON'T AGREE, AND WE HAVE TO VOTE AND WE WIN SOME, WE LOSE SOME. I WOULD TELL YOU THIS. THIS IS A HARD JOB FOR ANYBODY THAT HAS EVER BEEN IN THIS POSITION, THEY'LL UNDERSTAND THAT. WE DO. WE TAKE A LOT OF CRITICISM, WE TAKE A LOT OF PUNISHMENT, WE TAKE A LOT OF ABUSE, AND WE TAKE THAT -- BUT ON THE OTHER HAND, THERE'S THE FREEDOM OF SPEECH. AND THE WAY WE GO ABOUT THAT'S IMPORTANT. AS AN ORGANIZATION THAT YOU REPRESENT, IT'S IMPORTANT THAT YOU REPRESENT THE ENTIRE ORGANIZATION, BUT I WILL TELL YOU AT THE END OF THE DAY, WHETHER I AGREE OR DISAGREE WITH MY COLLEAGUES UP HERE, ONE OF THE THINGS IS, IS THAT I WILL STAND BEHIND THEM. AND I THINK IT'S IMPORTANT. SO IF YOU CROSS THAT LINE, I HOPE YOU LEARNED A LESSON. IF YOU FEEL LIKE YOU DIDN'T DO ANYTHING, YOU'VE OFFENDED A FEW PEOPLE HERE, AND THAT'S -- YOU KNOW, I'VE BEEN OFFENDED BEFORE. BUT WE HAVE TO BE COGNIZANT OF THAT. WE HAVE TO BE CAREFUL. YOU HAVE TO UNDERSTAND THE -- WHO YOU REPRESENT. YOU REPRESENT LARGE BUSINESSES, SMALL BUSINESSES AND -- ALIKE. AND SO I WOULD JUST ENCOURAGE YOU IN THE FUTURE TO STEP BACK AND REALLY TAKE A LOOK AT YOUR -- WHAT YOU'RE DOING AND YOUR BOARD OR WHOEVER AND -- AND MAKE SURE THAT WE'VE LEARNED FROM THIS EXPERIENCE. I HOPE WE DO GO ON, AND I SUPPORT COUNCILWOMAN PAXSON AS FAR AS HER RECOMMENDATION. AND I HOPE WE CAN GET PAST THIS. AND IN THE FUTURE, WE'RE GOING TO STILL CONTINUE TO VOTE AND THERE ARE GOING TO BE SOME TIMES WE AGREE AND SOME TIMES WE DISAGREE, BUT AT THE SAME TIME, WE ARE A COLLECTIVE GROUP UP HERE. I DON'T WANT TO GO AS FAR AS TO SAY THAT WE'RE FAMILY, BUT WE'RE PRETTY CLOSE, SO... THANK YOU. COUNCILMA N SCOTT? >> Scott: FULL DISCLOSURE, I'M -- NO INSURANCE, I'M A CHAMBER MEMBER. FIRST OF ALL, I LIKE YOUR IDEA, JUST DON'T PUT MY CELL PHONE ON -- BUT SEND IT TO EVERYBODY. I THINK YOU SHOULD ADVOCATE. I KIND OF THINK THAT'S WHAT YOU'RE SUPPOSED TO DO IS ADVOCATE. JUST ADVOCATE TO ALL OF US. I THINK THAT'S THE ANSWER. I DON'T THINK ANY OF US ARE SAYING WE'RE MAD BECAUSE YOU CALLED ME BAD NAMES. I THINK WE'RE JUST BAD BECAUSE WE THINK YOU TARGETED. SO THE ANSWER IS, DON'T TARGET ANY OF US, JUST ADVOCATE. ADVOCATE STRONGLY, I WANT TO KNOW WHAT THE CHAMBER'S THINKING. I RESPECT THE CHAMBER, BEEN A MEMBER -- INVOLVED IN THE MEMBERS FOR DECADES, SO I THINK THAT'S THE LESSON LEARNED, IS ADVOCATE, ADVOCATE STRONGLY, ADVOCATE TO THE WHOLE BODY. RIGHT? I THINK THAT'S -- I DO THINK THIS IS A LITTLE BIT OF A SLIPPERY SLOPE, WE BUY A LOT OF TABLES TO A LOT OF DIFFERENT ORGANIZATIONS, AND SO I APPRECIATE IF IT'S THE WILL OF THE BODY TO KIND OF LET IT LIE. I DO -- I'M A BELIEVER, YOU KNOW, IN CHURCH AND STATE, YOU KNOW, A SEPARATION. I THINK THE ISSUE, THOUGH, IS WHEN WE HAVE AN OPPORTUNITY -- YOU KNOW, SIX OF US -- PICK A NUMBER, THREE OF US CAN GO TO AUSTIN AND ADVOCATE FOR US, BUT IF THERE'S 120 PEOPLE ADVOCATING FOR US, WE HAVE A BETTER CHANCE OF SUCCESS. I THINK THERE'S OPPORTUNITY TO LEVERAGE OUR GOALS AND OBJECTIVES, WE SHOULD TAKE ADVANTAGE OF THAT. THAT'S MY SENSE LIKE YOU DID WITH CORPUS CHRISTI TO AUSTIN AND POTENTIALLY CORPUS CHRISTI TO DC. ANY WAY, THAT'S MY TAKE. COUNCILWO MAN CAMPOS. >> Campos: THANK YOU, MAYOR. I THOUGHT LYLE LARSON WAS A BREATH OF FRESH AIR, SO I'M GLAD HE SPOKE THE TRUTH. EVEN WHEN HE CRITICIZED OUR OWN, SO KUDOS TO US. I JUST WANTED TO SAY SOMETHING ELSE ABOUT THE CHAMBER. I WANTED TO JUST REMIND THE CHAMBERS ABOUT THE OTHER SMALL BUSINESSES, AND I THINK THAT'S THE THING, THAT I HOPE THAT COMES -- LIKE I ALWAYS SAY, WHEN SOMETHING BAD HAPPENS, THAT SOMETHING GOODWILL COME OUT OF THIS. AND HOPEFULLY SOMETHING GOOD IS THAT I HOPE THAT YOU ALL WILL DO A LITTLE BIT BETTER JOB AT REACHING OUT TO THOSE SMALL BUSINESSES BECAUSE, YOU KNOW, THAT'S WHAT THE BUSINESS OF THE CHAMBER WAS SUPPOSED TO BE ABOUT IS TO HELP OUT THE SMALL BUSINESSES. AND FOR ME, I DON'T SEE ENOUGH OF THAT. I'VE BEEN LATELY GOING TO -- WHAT IS IT CALLED, MIND YOUR BUSINESS, WHICH ARE THE -- I GUESS IT'S AN ORGANIZATION THAT DOES NOW THE RIBBON CUTTING. I'VE BEEN GETTING INVITED BY EFREN TO GO AND DO THOSE. I DON'T KNOW WHY IT'S NOT THE CHAMBER, BUT ANYWAY -- >> HE'S A PRIVATE BUSINESS. >> Campos: YEAH. OKAY. SO, YOU KNOW, IT IS APPRECIATED. AND I -- I DON'T KNOW, LIKE I SAID, I DON'T KNOW WHY THE CHAMBER'S NOT DOING IT, BUT THAT'S OKAY. >> WE DO RIBBON CUTTING STILL. >> Campos: OKAY. BUT THE POINT BEING THAT, YOU KNOW, THE -- YOU KNOW, THE -- WHAT MAKES UP A COMMUNITY IS THE PEOPLE THAT ARE LIVING HERE AND THAT HAVE THE OPPORTUNITY TO CREATE, YOU KNOW, THEIR OWN BUSINESS. SO I JUST HOPE THAT YOU DO A BETTER JOB IN REACHING OUT TO THOSE SMALL BUSINESSES. I DON'T KNOW IF YOU'VE BEEN DOING IT LATELY, BUT I KNOW THAT THERE'S A DAY -- WHAT IS IT -- ONE SHOPPING DAY A YEAR, I GUESS, THAT YOU DO FOR JUST SMALL BUSINESSES? HAVE Y'ALL BEEN DOING THAT LATELY? >> WE HAVE SEVERAL ACTIVATIONS AND DIFFERENT TYPES OF CAMPAIGN FOR SMALL BUSINESS. >> Campos: OKAY. I KNOW AT ONE TIME IT WAS LUGE HUGE AND I USED TO SEE THIS LITTLE STICKER THAT SAID SHOP LOCALLY. I THINK THAT WOULD BE ANOTHER BIG THING THAT I WISH THE CHAMBER WOULD ACTUALLY DO, SO... >> AGAIN. THANK YOU FOR THE CONVERSATION WE'RE HAVING TODAY, IS WE ARE PARTNERING ON A VISION TO VICTORY SUMMIT. AGAIN, SOME OF THE CONCERNS THAT MAYBE WOULD HAVE BEEN CHALLENGING GOING FORWARD, BUT I HOPE WE CAN CONTINUE TO COLLABORATE AND WORK HARD FOR SMALL BUSINESSES TOGETHER, BECAUSE WE HAVE DONE GREAT WORK IN THAT SPACE WITH YOUR PARTNERSHIP. >> Campos: YES. AND LIKE I SAID BEFORE, YOU KNOW, WE HAVE, LIKE OTHER ORGANIZATIONS VISIT CORPUS CHRISTI, ACTUALLY, I JUST WENT TO GO VISIT THE STRAIGHT AQUARIUM, WHICH IS NOW THE OCEANS AND RESCUE. AND I ASKED THEM ABOUT DESALINATION. AND BASICALLY, THEY SAID, WELL, WE'RE KIND OF LIKE SWITZERLAND, , YOU KNOW, WHICH IS OKAY, BUT, YOU KNOW, THEY'RE NOT OUT THERE ADVOCATING FOR DESAL AND THEY'RE NOT ADVOCATING AGAINST DESAL. YOU KNOW, THEY KNOW THAT WE ALL NEED TO WORK TOGETHER. SAME THING WITH THE VISIT CORPUS CHRISTI, YOU KNOW, IT'S A $1.4 BILLION TOURIST INDUSTRY AND I WOULD HAVE LIKED TO HAVE SEEN THEM OUT THERE SAYING, YOU KNOW, THIS COULD REALLY HURT OUR BUSINESS, BUT THEY'RE NOT DOING IT AND THEY DON'T DO IT. SO, AGAIN, WATCH YOUR LANES, YOU KNOW. KEEP -- KEEP AN EYE -- YOU KNOW, KEEP YOUR EYE ON THE BALL. THIS IS ABOUT, YOU KNOW, IF -- THE CHAMBER IS ABOUT HELPING OUT SMALL BUSINESSES, THEN KEEP THAT IN MIND. KEEP DOING, YOU KNOW, WHAT YOU SHOULD BE DOING. THANK YOU. >> YES, MA'AM. COUNCILWO MAN VAUGHN? >> Vaughn: WELL, I JUST CAN'T LET WHAT ROLAND SAID GO TO WASTE HERE. I THOUGHT HE WAS GOING TO RUN DOWN THERE AND GIVE YOU A BIG HUG AND A KISS. >> Barrera: I WILL LATER. >> Vaughn: YEAH, I'M SURE YOU WILL. THERE IS NOBODY THAT COMES BEFORE THIS BODY THAT SHOULD BE TREATED LIKE LYLE LARSON WAS. HE'S A PAST STATE REPRESENTATIVE THAT WAS LOVED BY DEMOCRATS AND REPUBLICANS. THAT WAS SO UNCALLED FOR. I DON'T WANT ANYONE TO TAKE THAT LIGHTLY, BECAUSE THAT WAS WRONG. >> AND THAT WAS A PERSONAL MISSTEP ON MY FAULT. IT DOES NOT REFLECT THE ORGANIZATION. >> Vaughn: IT WAS. I APPRECIATE YOU ADMITTING THAT. IT COULD HAVE SOMETHING TO DO WITH THE FUNDING THAT'S TALKED ABOUT UP HERE. I'M GOING TO GIVE YOU THE BENEFIT OF THE DOUBT. YOU CAN DO 10 GREAT THINGS. PROP A DIDN'T WORK TOO GREAT FOR YOU GUYS. YOU CAN DO 10 GREAT THINGS, BUT ONE BAD THING CAN STICK OUT IN PEOPLE'S MINDS. I HOPE Y'ALL LISTEN TO THE REST OF THE PEOPLE IN THE CHAMBER. I GOT CALLS THEY WERE NOT AWARE OF WHAT WAS GOING ON AND THEY WERE NOT PLEASED WITH WHAT THE EXECUTIVE OF THE BOARD WAS DOING. I HOPE THAT THIS STOPS BECAUSE THE CITY NEEDS TO BE TOGETHER. IT NEEDS TO BE UNITED, NOT DIVIDED. AND IT IS RIGHT NOW IN CERTAIN AREAS, AS WE KNOW. SO I HOPE THAT THIS DOESN'T HAVE TO COME BACK UP AGAIN IS WHAT I'M HOPING. >> YES, MA'AM. >> Vaughn: THANK YOU. >> Mayor Guajardo: THANK YOU. SO I THINK THAT'S ALL THE COMMENTS. AND IT'S RESERVING A WHOLE LOT OF COMMENTS I WAS GOING TO MAKE, BUT I'M VERY HAPPY TO HEAR THAT -- AND I APPRECIATE THAT WE'RE NOT GOING TO MOVE FORWARD IN DEFUNDING THE CHAMBER. I AGREE WITH THE COMMENTS THE COUNCILWOMAN JUST MADE. DIVISION IS DIVISION, AND WE HAVE THAT POWER RIGHT HERE. I THINK A BIG PART OF LEADERSHIP IS LISTENING, AND THEN ACTING. AND I THINK THAT LISTENING MEANS SITTING AT THE TABLE TOGETHER AND GOING TO WHETHER IT'S THE CHAMBER OR WHOMEVER AND SAYING, HERE'S HOW WE FEEL, LET'S FIX THIS. BEFORE TAKING ACTION THAT'S GOING TO AFFECT THE ENTIRE CITY OF CORPUS CHRISTI, SO I THINK THAT WAS RIGHT DECISION ON THE PART OF MY COLLEAGUES. REALLY, THAT'S ALL. I THINK IN THE FUTURE, I ENCOURAGE MY COLLEAGUES, YOU KNOW, TO REACH OUT. I DON'T KNOW THAT THERE WAS ANY COMMUNICATION BETWEEN THE THREE WHO SIGNED THAT MEMO AND THE RTA -- I'M SORRY, THE CHAMBER BEFORE THIS MOMENT CAME TO LIGHT, BUT I WOULD CERTAINLY ENCOURAGE THAT, IF IT WASN'T. SO ANYHOW, WE'RE GOING TO GO AHEAD AND MOVE ON. >> YES, AND IF I CAN JUST PERSONALLY ADD -- TOO, PERSONALLY. YOUR WORK IS NOT LOST ON ME. I DO KNOW IT'S THANKLESS. MY FATHER IS ALSO AN ELECTED OFFICIAL SO I SEE WHAT IT COULD LOOK LIKE AT HOME. SO SINCERELY, MY APOLOGIES, ESPECIALLY ON MY PERSONAL MISSTEPS MAIRNLINGS THANK YOU FOR YOUR WORDS AND THANK YOU FOR BEING HERE. >> City Secretary: PUBLIC COMMENT. >> Mayor Guajardo: YES. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE PUBLIC COMMENT ON THIS ITEM. >> SUZIE LUNA SALDAÑA, CORPUS CHRISTI. FIRST OF ALL, I WANT TO THANK ALL OF YOU FOR TRYING TO PUT THINGS TOGETHER WITH THE EXCEPTION OF ONE. OKAY? SO I WANT YOU TO MAKE SURE THAT YOU UNDERSTAND WHAT YOU'RE DOING. YOU'RE MOVING FORWARD WITH THIS AND IT'S A PLEASANT THING TO SEE THAT YOU HAVE BROUGHT IT ALL TOGETHER. BUT PUT A CAVIAR ON THERE THAT IF IT HAPPENS AGAIN, YOU'RE GOING TO TAKE ACTION. DON'T LEAVE IT SITTING THERE. LET YOUR WORDS BE STRONG AND LET THEM BE UNITED LIKE THEY ARE. LIKE I SAID, I APPRECIATE EVERY ONE OF YOU WITH THE EX EXCEPTION OF ONE. HAVE A GREAT DAY. >> Mayor Guajardo: THANK YOU, MS. SALDAÑA. ANYONE ELSE? >> GOOD AFTERNOON, MAYOR AND COUNCIL. FORGIVE MY TARDINESS. I DO VERY MUCH APPRECIATE THE OPPORTUNITY. I'VE BEEN LISTENING. >> City Secretary: MA'AM, CAN YOU STATE YOUR NAME AND CITY. >> YES, I'M SORRY, CINDY BARRERA. MY APOLOGIES, DISTRICT 5. I HAVE HAD THE OPPORTUNITY TO VISIT WITH SEVERAL OF YOU AND I JUST WANTED TO -- I'VE BEEN LISTENING TO THE CONVERSATION WITH AL AND REALLY JUST EXPRESS HOW GRATEFUL WE ARE FOR THE PARTNERSHIP, AS LONG AS WE'VE HAD IT WITH THE CITY. AND I'M PLEASED WITH THE CONVERSATION THAT'S TAKEN PLACE TODAY AND I CANNOT STRESS ENOUGH THE IMPORTANCE OF RESPECTFUL EFFICACY. WE RECOGNIZE HOW CRITICAL IT IS AND THE PARTNERSHIP THAT WE HAVE. WE'RE GRATEFUL FOR IT, AND WE THANK YOU FOR THE DIALOGUE TODAY, WE PLAN TO CONTINUE THAT IN THE FUTURE, AND, AGAIN, JUST THANK YOU FOR THE OPPORTUNITY TO CONTINUE TO WORK WITH US. >> Mayor Guajardo: THANK YOU, MRS. BARRERA. >> RACHEL CABALLERO, DISTRICT ONE. I AM HERE ON BEHALF OF THE CORPUS CHRISTI TAXPAYERS ASSOCIATION. I'D LIKE TO MENTION A CUM OF THINGS, NOW THAT WE'VE GOTTEN PASSED THE BROWN NOSING PORTION OF THIS ISSUE. ONE OF THE BIGGEST CONCERNS WITH THE CHAMBER OF COMMERCE IS THAT THEY DID NOT GET A VOTE TO COME AFTER TWO OF OUR NEWLY ELECTED COUNCILPEOPLE. AS A SMALL BUSINESS OWNER MYSELF, I WOULD NEVER PAY THE FEES TO BE A PART OF THE CORPUS CHRISTI CHAMBER OF COMMERCE, AND I DO UNDERSTAND THAT MANY ORGANIZATIONS HERE DO NOT BECAUSE OF HOW POLITICAL IT HAS BECOME AND HOW THEY DO NOT SUPPORT LOCALLY OWNED SMALL BUSINESSES. I'D LIKE TO REMIND YOU GUYS ABOUT PROPOSITION A WHERE THE CHAMBER USED TAXPAYER DOLLARS AGAINST THE COMMUNITY TO SUPPORT A BLANK CHECK APPROACH ON GETTING A CONVENTION CENTER HOTEL. THE CHAMBER AT THAT TIME DID NOT USE A LOCAL COMPANY TO PROVIDE SIGNAGE FOR THEM. THEY DECIDED TO USE A COMPANY OUT OF SAN ANTONIO. SO THE LOCAL CORPUS CHRISTI CHAMBER OF COMMERCE HAS LOST THEIR SIGHT AS TO WHO THEY SHOULD BE SUPPORTING, AND JUST FOR CLARIFICATION, MY TOWN OUR FUTURE IS AN ORGANIZATION THAT WAS CREATED BY GULF KOASES GROWTH VENTURES/EXXON S SAN A SACKEK. THE PRESIDENT OF THE ORGANIZATION INTRODUCED ITSELF TO THE PORT OF CORPUS CHRISTI IN 2024. I HAVE POSTED THAT ON SOCIAL MEDIA SO THE COMMUNITY IS AWARE THAT MY TOWN OUR FUTURE IS AN ARM OF INDUSTRY. THE OTHER CONCERN THAT I HAVE AS PRESIDENT OF THE CORPUS CHRISTI TAXPAYERS ASSOCIATION IS THAT WE AS A COMMUNITY DO NOT GET TO SEE THE FINANCIALS OF THE CORPUS CHRISTI CHAMBER. SO WE DON'T KNOW WHERE THEIR MONEY IS GOING, AND THAT'S AN ISSUE, BECAUSE WE'RE SEEING THIS COMING NOW ACROSS THE BOARD WITH DIFFERENT ORGANIZATIONS THAT ARE INVOLVED WITH THE CITY OF CORPUS CHRISTI. SO I WOULD IMPLORE THAT HOWEVER WE -- IF YOU ALL CHOOSE TO MOVE FORWARD WITH THE CHAMBER, THAT A LEVEL OF PROFESSIONALISM IS BEING OVERSEEN AND THAT REQUIREMENTS -- OR MAYBE WE JUST CHANGE THE PRESIDENT, BECAUSE IT SEEMS TO BE THAT THIS INDIVIDUAL IS INCAPABLE OF ACTING MATURELY AND UNDERSTANDING WHAT THEIR TRUE ROLE IS. SO AS MUCH AS I WOULD HOPE THAT WE WOULD DEFUND AT LEAST A PORTION OF THE TAXPAYER MONEY THAT'S GOING TO THE CHAMBER, I UNDERSTAND YOU ALL'S POSITION, BUT WE DEFINITELY NEED TO HOLD THEM MORE ACCOUNTABLE IN THE FUTURE TO DOING WHAT THEY'RE SUPPOSED TO BE DOING, WHICH IS SUPPORTING LOCALLY OWNED SMALL BUSINESSES. THANK YOU. >> Mayor Guajardo: THANK YOU. ANYONE ELSE? MR. BENAVIDES? >> THANK YOU. MAYOR COUNCILMEMBERS FIRST OF ALL, THE ACTIONS TAKEN WERE DECEPTIVE AND UNETHICAL. BUT THAT'S NOT THE ONLY ISSUE HERE WITH THIS MOTION. THE MOTION IS THE FACT THAT THERE IS A CONFLICT OF INTEREST. >> City Secretary: WOULD YOU STATE YOUR NAME AND CITY, I'M SORRY. >> ALEX BENAVIDES, CORPUS CHRISTI, DISTRICT 3. AND WHAT I WAS SAYING IS THAT FIRST OF ALL, YES, DECEPTIVE ACTIONS WERE ACHE T TAKEN AND THEY WERE UNETHICAL. TO BE TAKEN BY THE CHAMBERS IS RIDICULOUS AND WILD. BUT THE SECOND BIGGEST PART OF IT IS THAT BY RECEIVING CITY FUNDING, THERE IS A CONFLICT OF INTEREST BETWEEN INDUSTRY, BUSINESS AND THE CITY. NOW, THERE SHOULDN'T BE AN INTEREST BETWEEN -- THERE SHOULDN'T BE A CONFLICT OF INTEREST BETWEEN THE CITIZENS HAVING -- HAVING THEIR BUDGET NEEDS MET AND THE CHAMBER'S LOBBYING AND DOING OTHER THINGS TO CREATE THAT INTEREST. SO BY THAT -- I DON'T -- I WOULD MOVE THAT -- OR I WOULD ASK THAT THE CITY COUNCIL THINKS ABOUT WHAT THEY'RE DOING AND THAT THEY DO NOT VOTE TO CREATE THIS CONFLICT OF INTEREST IN BETWEEN FUNDING AND THE CHAMBERS AND THE CITY. YES, GOOD THINGS HAVE BEEN DONE, AND WE ARE SUPPOSED -- YOU GUYS ARE SUPPOSED TO WORK TOGETHER IN WHAT YOU DO, BUT WHEN YOU ADD FUNDING TO EITHER SIDE, THAT'S WHEN THE VOTERS, THE CITY COUNCIL'S VOTES ARE -- BECOME QUESTIONABLE. AND I KNOW THAT THIS CITY COUNCIL DOES NOT WANT THEIR VOTES BEING QUESTIONED ON WHETHER THEY WERE -- WHETHER THEY WERE TALKED TO BY THE CHAMBERS AND WHETHER THOSE FUNDS ARE GOING TO BE MET OR NOT. SO I ASK THAT WE -- I ASK THAT WE CUT THE FUNDING AND JUST BECAUSE SOMEBODY -- LIKE JUST BECAUSE THAT HAPPENED, SOMEBODY'S OFFENDED ISN'T THE REASON THAT WE'RE TALKING ABOUT THIS RIGHT NOW. WE'RE NOT TALKING BECAUSE A COUPLE MEMBERS GOT THEIR FEELINGS HURT. WE'RE TALKING ABOUT THIS RIGHT NOW BECAUSE THERE IS A CONFLICT OF INTEREST. THERE ARE DECEPTIVE ACTS AND THEY'RE ACTING UNETHICAL. AND OUR CITY COUNCIL SHOULD NOT BE A PART OF ANY OF THAT, SO I WOULD SAY -- I WOULD ASK THAT THE CITY COUNCIL VOTES TO DEFUND THE CHAMBER. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. BENAVIDES. ANYONE ELSE ON ITEM NUMBER 13? OKAY. THERE BEING NO ONE, I'LL CLOSE PUBLIC COMMENT AND WE'RE GOING TO MOVE ON TO SECTION L, WE'RE GOING TO DO ITEM 14 WHICH IS A BRIEFING BY OVG360 ON THE AMERICAN BANK CENTER AND THEN WE'LL BREAK FOR LUNCH. >> >> GOOD AFTERNOON, COUNCIL. DANNY MALIS, GENERAL MANAGER, AMERICAN BANK CENTER. IT'S NICE TO BE HERE AGAIN. IT'S BEEN A LITTLE WHILE, SO IT'S GOOD TO SEE EVERYBODY. I JUST WANT TO INTRODUCE SOME OF OUR CORPORATE SUPPORT THAT IS IN TOWN FOR THIS MEETING. WE HAVE TOWM PAULKET WHO'S OUR SR. VICE PRESIDENT OF OUR AREA OUR DISTRICT GENERAL MANAGER, CLAUDE OWE OLIVERA, WE HAVE OUR VICE PRESIDENT OF HOSPITALITY JOSH PILE AS WELL AS OUR FOOD AND BEVERAGE GENERAL MANAGER MELLY GRA GNAT TO. WE ARE HERE TO KIND OF GIVE AN OVERVIEW OVER THE TWO YEARS THAT WE'VE BEEN HERE. IT'S BEEN A LONG TIME COMING FOR US TO GET UP HERE AND KIND OF TELL YOU THE GOOD NEWS OF HOW WE'VE BEEN IMPROVING THE OPERATIONS OVER THE LAST FEW YEARS. AGAIN, OAK VIEW GROUP, OAK VIEW GROUP HOSPITALITY ARE THE TWO GROUPS THAT RUN THE FASITY. WE'RE HERE TO TALK ABOUT THE POSITIVES THAT WE'VE BEEN INSTILLING IN THE FACILITY OVER THE PAST COUPLE ORE YOOS. WE'RE GOING TO SHOW AN INCREASE IN EVENTS, ATTENDANTS, WE'RE GOING TO SHOW OUR EFFORTS OF BEING GOOD STEWARDS OF THE TAXPAYER DOLLARS THAT GO INTO THE FACILITY. WE'RE GOING TO TALK ABOUT COMMUNITY PARTNERSHIPS AS WELL AS TALKING ABOUT THE BOOKING IMPROVEMENTS WE'VE MADE OVER THE PAST FEW YEARS. HERE'S A LOOK AT OUR FINANCIALS AND YEAR ENDING FOR '23-'24 AND OUR ESTIMATES FOR 2025. AS YOU CAN SEE, THE NUMBER OF EVENTS HAS INCREASED EVERY YEAR AS WELL AS THE ATTENDANCE. REVENUES HAVE INCREASED AS WELL FROM '23 TO '24. WE'RE SHOWING A SLIGHT DIP ON OUR ESTIMATES IN '25, MOSTLY FROM A CONSERVATIVE ESTIMATION STANDPOINT. WE'RE OBVIOUSLY HOPING TO SHOW A LITTLE BIT BETTER NUMBERS THAN THOSE, BUT ALSO TOOK A LITTLE BIT OF DIP BECAUSE WE SHUT DOWN THE ARENA FOR THREE MONTHS OVER THE SUMMER FOR SOME CAL CAPITAL PROJECT AS WELL AS THE THEATER HAS BEEN UNDER CONSTRUCTION OVER THE LAST YEAR OR SO, SO WE DEFINITELY TOOK A LITTLE BIT OF A HIT FROM A BOOKING PERSPECTIVE. OUR SPONSORSHIP REVENUE IS UP, WHICH IS KIND OF, AGAIN -- HAS GOTTEN OUR TOTAL REVENUES UP. ANOTHER INCREASE THAT IS NOT ON HERE, WE'VE GOT SOME INFORMATION FROM VISIT CORPUS CHRISTI OVER THE LAST FEW DAYS, OUR ROOM NIGHTS HAVE GONE UP SUBSTANTIALLY OVER 10,000 ROOM NIGHTS FROM 2023 TO 2025, WITH AN ESTIMATED ANNUAL ECONOMIC IMPACT OF $15.6 MILLION FROM EVENTS DIRECTLY RELATED TO WHAT HAPPENS IN OUR FACILITY. I WOULD ALSO LIKE TO POINT OUT THAT THE STEADY DECREASE IN OUR EXPENSES, OUR OPERATING EXPENSES HAVE GONE DOWN EVERY YEAR. PART OF THAT IS AS WE START TO PUT MORE FUNDING IN, WE START TO REPAIR SOME THINGS THAT WE KNOW WEREN'T NECESSARILY FUNCTIONING PROPERLY PRIOR TO OUR ARRIVAL. SO WE'RE LOWERING THOSE EXPENSES EVERY YEAR AS WE KNOW THAT THAT IS TAXPAYER DOLLARS THAT COME INTO THE FACILITY, SO WE'RE DOING A LITTLE BIT MORE EFFICIENT WITH LABOR AND EXPENS AS THEY'RE COMING THROUGH, AND WE'RE SHOWING A NET INCOME BEFORE EXPENSES GRADUALLY INCREASING OVER THOSE THREE YEARS. ONE OF THE BIG NOTES FOR US IS OUR GLOBAL PARTNERSHIPS DIVISION. WE HAVE GONE FROM -- FROM 330,000 FROM OUR -- THE -- PRIOR TO US TO 1.3 MILLION ANNUALLY NOW. THAT EXPANDED WITH ONE PARTNER THAT WE HAD IN THE FACILITY, WHICH IS OUR NAMING RIGHTS PARTNER, AMERICAN BANK, HAS GOTTEN UP TO 22 DIFFERENT PARTNERS WE HAVE IN THE FACILITY, IN A VARIETY OF DIFFERENT WAYS, WHETHER IT BE ADVERTISING OR AGREEMENTS WITH PARTNERSHIPS. WE'VE ALSO INCREASED OUR SUITE ATTENDANCE FROM TWO FROM THE DAY WE GOT HERE TO NOW NINE, WHICH IS -- WAS VIRTUALLY SOLD OUT. THE LAST TWO SUITES WE HAVE ARE ONLY AVAILABLE IN CERTAIN TYPES OF EVENTS SO WE'VE BASICALLY SOLD OUT ALL OF OUR SUITE LEVEL. JUST TO NOTE THAT OUR PARTNERSHIPS, THE 1.3 MILLION IN PARTNERSHIPS DOES NOT INCLUDE ANYTHING PAST THIS CURRENT FISCAL YEAR, WHICH ENDS SEPTEMBER 31ST, WHICH IS A LITTLE BIT DIFFERENT AS -- FROM A RECOGNITION OF REVENUE STANDPOINT, JUST BECAUSE ANY CONTRACTS THAT WE DO SIGN, WE RECOGNIZE THEM ON A MONTHLY BASIS FOR FINANCIALS, WE DON'T NECESSARILY RECOGNIZE THOSE IMMEDIATELY. SO WITH THE NEW NAMING RIGHTS AGREEMENT, WE DIDN'T RECOGNIZE 100% OF THAT REVENUE ON YEAR 1 AT THE DATE OF CONTRACT. THIS IS A LIST OF THE GROUPS THAT WE SUPPORT AND SPONSOR. WE SPONSOR IN A FEW DIFFERENT WAYS. SOME OF THEM WE'LL DO RENTAL CREDITS OR -- OR IN-KIND SPONSORSHIPS FOR EVENTS THAT ARE BEING HELD IN THE FACILITY, BUT WE ALSO DO CASH SPONSORSHIPS AS WELL WITH SOME OF OUR PARTNERS WHERE WE'LL SPONSOR EVENTS, TABLES, BOOTHS, THINGS LIKE THAT THAT ARE OUT IN THE COMMUNITY. ONE WAY THAT WE'RE CURRENTLY WORKING ON TO FIND NEW WAYS TO WORK WITH SOME LOCAL PARTNERS IS WE ARE IMPLEMENTING A GRANT PROGRAM FOR RENTAL REBATES AND HOSPITALITY CREDITS FOR NONPROFITS THAT WANT TO BRING SOME OF THEIR EVENTS TO THE FACILITY, MAYBE A LITTLE BIT OUT OF THEIR PRICE RANGE FROM AN EXPENSE PERSPECTIVE, SO WE'RE CREATING A PROGRAM THAT WE'RE GOING TO IMPLEMENT WHERE THEY CAN APPLY FOR CREDITS TO FOOD AND BEVERAGE OR RENT TO HELP ALLEVIATE SOME OF THOSE EXPENSES THAT THEY WOULD RECOGNIZE HAVING THEIR FACILITY -- THEIR EVENTS IN THE FACILITY. WE'VE ENGAGED IN OVER 50 LOCAL VENDORS THAT WE RECOGNIZE FROM OUR SALES TEAM IN REGARDS TO LOCAL VENDORS THAT WE RECOMMEND FOR THE FACILITY, WHETHER THAT BE DECORATORS, EQUIPMENT RENTALS, THAT THINGS OF THAT NATURE. WHEN WE FIRST GOT HERE, WE HAD SIX VENDORS THAT WE WERE RECOMMENDING ON A REGULAR BASIS. WE'VE EXPANDED THAT TO 50 TO TRY TO SPREAD SOME OF THAT OUT, SO IF WE CAN'T HANDLE SOMETHING IN-HOUSE, WHETHER IT BE SPECIAL TYPE OF EQUIPMENT, FOOD AND -- PIPE AND DRAPE TABLES, THINGS OF THAT NATURE, WE REACH OUT AND WE RECOMMEND A MULTITUDE OF DIFFERENT VENDORS ON THE SALES SIDE TO HELP KIND OF SPREAD SOME OF THAT WEALTH OF WHAT THE MONEY IS THAT'S COMING INTO THE FACILITY, TO BE ABLE TO HELP SOME OF THOSE OTHER BUSINESSES IN TOWN. WE ALSO, AS YOU COULD TELL FROM SOME OF THE NEWS REPORT, WE HIGHLIGHTED OUR LOCAL VENDORS IN OUR ARTIST GIFTS THAT WE GIVE TO ARTISTS THAT COME INTO THE FACILITY. OBVIOUSLY WE GOT A HUGE SHOUT OUT FROM JELLY ROLL AT THE CONCERT WHERE HE WAS WEARING HIS CORPUS CHRISTI HAT WHEN HE WENT ON STAGE, WHICH WAS A HUGE DEAL FOR THEM AND IT'S IMPORTANT FOR US TO KIND OF SHOW THAT WE PARTNER WITH THE LOCALS AND WE LET THE LOCALS GET THEM OUT THERE TO SEE SOME OF THOSE NATIONAL ARTISTS. I WANT TO USE THIS AS A SHOUTOUT TO ANY MPOS THAT YOU MAY HAVE IN YOUR GROUP. WE'RE ALWAYS LOOKING FOR NONPROFITS THAT WE COULD UTILIZE IN DIFFERENT AREAS FROM OUR FOOD AND BEVERAGE AREAS. CURRENTLY WE HAVE A ROSTER OF 10, BUT WE'RE ALSO LOOKING FOR MORE MPOS AND MORE GROUPS THAT CAN COME IN AND WE CAN TALK A LITTLE BIT OFFLINE OF WHAT THAT PROGRAM IS HOW WE CAN GET THEM INVOLVED IN THE DIFFERENT EVENTS WE DO IN THE FACILITY. WE'RE EXPANDING OUR PROMOTER NETWORK. OBVIOUSLY WE'VE MADE A CONCERTED EFFORT TO WORK WITH LOCAL, REGIONAL AND NATIONAL PROMOTORS. THIS IS A LIST WITH SOME NOTES ON SOME OF THE LOCAL AND REGIONAL PROMOTORS THAT WE HAVE WORKED WITH. THIS IS NOT EVERYBODY. OBVIOUSLY WHEN IT COMES TO SOME OF THE NATIONAL TOURING EVENTS WE'RE GOING TO WORK WITH THE NATIONAL GROUPS. THEY ALSO HAVE A TENDENCY TO WORK WITH LOCAL GROUPS AS WELL WHEN IT COMES TO DIFFERENT MARKETING ENDEAVORS THAT THEY WANT TO DO IN TOWN, THEY WILL SOMETIMES CONTRACT OUT TO WHERE WE EXPAND A LITTLE BIT TO WHERE MAYBE NOT ON THIS LIST, BUT THERE ARE DEFINITELY OTHER LOCALS THAT WE WORK WITH ON THAT PART. WE'RE LUCKY TO HAVE A VERY UNIQUE FACILITY IN WHICH WE HAVE A CONVENTION CENTER, A THEATER AND AN ARENA ALL UNDER ONE ROOF. EVERY ONE OF THOSE FACILITIES, BY THEMSELVES, HAS A DIFFERENT TYPE OF BOOKING STRUCTURE AND IS LOOKING AT A DIFFERENT STYLE OF BUSINESS THAT THEY WOULD LOOK TO PUT IN THOSE SPACES. YOUR CONVENTION CENTER BUSINESS IS OBVIOUSLY BUILT ON ECONOMIC IMPACT MORE THAN NECESSARILY THE REVENUE GENERATED WITHIN THE FACILITY. THE ARENA IS 100% FOCUSED ON BOTTOM LIEP LINE DRIVEN AND THE THEATER IS USUALLY A LITTLE BIT OF BOTH. FOR US, IT'S A VERY INTERESTING DYNAMIC THAT WE WORK WITH WHEN WE'RE TRYING TO BUILD WHAT THOSE EVENTS ARE, WHAT THOSE DIFFERENT SPACES ARE AND HOW WE CAN PROGRAM THEM ALL TO BE ABLE TO HIT ALL THREE OF THOSE DIFFERENT STYLES OF EVENTS AND GET THEM ALL INTO THE FACILITY IN THE BEST WAY THAT WE CAN. PER OUR CONTRACT, WE'VE GOT FIVE PERFORMANCE MEASURES THAT WE'RE GRADED ON ON AN ANNUAL BASIS. WE WORK WITH OUR CONTRACT ADMINISTRATOR ELSIE ON W WHAT THOSE REQUIREMENTS ARE. FROM A QUANTITATIVE PERSPECTIVE, WE'RE JUDGED ON REVENUE, WHICH WE'VE TOUCHED ON ALREADY. WE'RE JUDGED ON EVENT GOALS AND ROOM NIGHT GOALS, WHICH WE'VE TOUCHED ON ON THE FIRST SLIDE. REPAIRS AND MAINTENANCE IS A QUALITATIVE MEASURE THAT WERE USED. WHAT WE DO THERE IS WE HAVE FOUR QUARTERLY WALK-THROUGHS THAT WE'LL DO WITH CITY STAFF, ENGINEERING FIRM CONTRACTED BY THE CITY TO ASSIST WITH THOSE AND WHAT THEY DO IS EVERY QUARTER, WE DO THAT WALKTHROUGH, WE DO A REPORT AND THEN WE KIND OF REPORT BACK TO THE CITY ON HOW WE'RE GOING TO IDENTIFY WHAT WE'RE DOING TO GET THOSE REPAIRS AND MAINTENANCE DONE. IT'S A VERY LARGE FACILITY, SO EVERY QUARTER, WE KIND OF FIND A DIFFERENT SPACE THAT WE'RE GOING TO WALK THROUGH AND KIND OF HIT SO THAT WAY WE MAKE SURE WE'RE GETTING TO ALL THE PARTS OF THE BUILDING. THE FIRST COUPLE TIMES WE DID IT, WE TRIED TO WALK THE ENTIRE FACILITY AND YOU'D BE THERE FOR DAYS BEFORE YOU GET TO EVERYTHING, SO IN DOING THAT, WHAT WE DO -- WE FOUND A WAY THAT IT'S THE EASIEST WAY FOR US TO KIND OF HIT ALL THE SPACES EVERY YEAR AND MAKE SURE THAT WE'VE GOT A RUNNING ORDER OF WHAT THOSE THINGS ARE THAT WE'RE SUPPOSED TO BE TAKING CARE OF FROM THE REPAIRS AND MAINTENANCE PERSPECTIVE. THE LAST ONE THAT WE'RE GRADED ON IS OUR CUSTOMER SERVICE SURVEYS. WE HAVE TWO SEPARATE TYPES OF SURVEYS, ONE ON THE CONVENTION CENTER SIDE, ONE ON THE TICKETING SIDE. OUR AVERAGE SCORE FOR THE THREE YEARS THAT WE'VE BEEN HERE HAS BEEN 86.6. OUR LAST PERFORMANCE MEASURE DISCUSSION, OUR GOAL WAS 82.5, SO WE'RE STILL WELL AHEAD OF THAT. ALWAYS LOOKING TO TAKE THAT A LITTLE BIT MORE, BUT DON'T JUST TAKE MY WORD FOR IT. SOME OF THESE ARE SOME OF THE TESTIMONIALS FROM PARTNERS WE WORK WITH IN THE FACILITY, CLIENTS WHO COME TO THE BUILDING OR JUST THE GENERAL PUBLIC WHO WE'VE KIND OF HELPED OUT IN ONE WAY OR ANOTHER TO GIVE THEM A BETTER EXPERIENCE THAN WHAT THEY MAY HAVE HAD PREVIOUSLY. FOR THE HOSPITALITY HIGHLIGHTS, I'M GOING TO TURN IT OVER TO MELLY GRANADO, OUR GM FOR HOSPITALITY. >> I'M VERY TALL, GIVE ME A SECOND. HELLO. I'M MELLY GRANADO, AS DANNY MENTIONED, I'M GENERAL MANAGER OF HOSPITALITY AT AMERICAN BANK CENTER, ALONG WITH OUR ASSISTANT GENERAL MANAGER, NICK AND MANY OF OUR DEPARTMENT LEADS AND MANAGER WHOSE ARE IN ATTENDANCE TODAY. WE LEAD ALL THE FOOD AND BEVERAGE OPERATIONS AT AMERICAN BANK CENTER. I'M EXCITED TO SHARE WITH YOU OUR ONGOING AND NEW INITIATIVES WITH YOU. RECENTLY IN JUNE 2025 WE LAUNCHED OURSELF-CHECKOUT IN BOTH THE CONVENTION CENTER AT OUR SHORELINE MARKET AND OUR ARENA MARKETPLACE. THIS UPGRADE ALREADY IMPROVED OUR TRANSACTION EFFICIENCY BY 60%. IT CUT OUR AVERAGE TRANSACTION TIMES FROM TWO MINUTES TO 45 SECONDS, HAPPIER GUESTS, HAPPIER ATTENDEES WHICH IS A WIN ALL AROUND. IN 2023 WE CONVERTED OUR UNDERUTILIZED SPACE IN OUR ARENA CONCOURSE TO OUR 108 ARENA MARKETPLACE. THIS OUTLET GENERATED OVER $200,000 IN GROSS REVENUE THIS LAST FISCAL YEAR. WE'RE NOW WORKING WITH LOCAL VENDORS TO OFFER THEIR PRODUCTS IN OUR PREMIUM AND SUITES SPACES. WE'RE SUPER EXCITED ABOUT THIS PROGRAM. WE HOPE TO BRING AUTHENTIC AND LOCAL FLAVORS INTO OUR HIGH-END GUEST EXPERIENCES. AND THE MOST EXCITING DEVELOPMENT IS OUR INCUBATOR PILOT PROGRAM. YOU'LL SEE THAT AS THE LAST BULLET ON THIS SLIDE. RIGHT NOW WE'RE CALLING IT OUR COASTAL CULINARY LAUNCHPAD. IT'S LED BY OUR CONCESSIONS MANAGER, CLAY YUNGBURG, THIS WILL SHOWCASE SMALL BUSINESSES' FOOD AT ARENA EVENT. THEY'LL GET A CHANCE TO CONNECT WITH THOUSANDS OF CUSTOMERS. THIS IS A WIN FOR THE LOCAL BUSINESS, A WIN FOR OUR ATTENDEES, OUR GUESTS, AND MOST IMPORTANT FOR THE COMMUNITY. AND MOST IMPORTANTLY, TO ME, AS SOMEONE WHO IS CORPUS CHRISTI, BORN AND RAISED, IT CREATES A SENSE OF PLACE FOR EVERY GUEST THAT WALKS THROUGH OUR DOORS. EARLIER THIS YEAR I WAS LUCKY ENOUGH TO TRAVEL WITH OVG HOSPITALITY FOR THE LAUNCH OF THE MINI MILE ROAD MARKET IN TULSA. THEY HAVE A VERY SIMILAR PROGRAM. SEEING THE OPPORTUNITY IT CREATED FOR LOCAL BUSINESSES IN THAT COMMUNITY MAKES OUR TEAM EXTREMELY EXCITED TO BRING THAT OPPORTUNITY TO CORPUS CHRISTI. WE HOPE TO LAUNCH A PROGRAM IN SIX TO EIGHT -- IN FOUR TO SIX MONTHS, SORRY ABOUT THAT, WE WANT TO KEEP IT SIMPLE AND READY FOR ANY LOCAL BUSINESS THAT'S NOT CURRENTLY IN A BRICK AND MORTAL TO APPLY. WE WANT TO DO -- MORTAR APPLY. DO AN APPLICATION, TO MAKE SURE THE BUSINESS IS CORPUS CHRISTI LOCALLY OWNED AND OPERATED, PERMITTED AND INSURED AND DOES HAVEN'T THAT BRICK AND MORTAR. THIS IS A LAUNCHPAD. WHEN WE SELECT A VENDOR, THEY WILL BE ASSIGN TO OUR CONCESSION STAND 202 AND WE'LL OFFER THEM EQUIPMENT AND SUPPORT TO BE SUCCESSFUL. OUR KEY GOALS ARE TO SHOWCASE AUTHENTIC LOCAL FAVORS, CREATE THAT SENSE OF PLACE THAT'S INCREDIBLY IMPORTANT, SUPPORT A SMALL BUSINESS TO GROW AND WE WANT TO STRENGTHEN OUR COMMUNITY TIES. THIS ALSO GIVES US THE OPPORTUNITY TO TEST A SCALABLE CONCEPT TO SEE IF THERE ARE POSSIBLE LONG-TERM OPPORTUNITIES FOR SOMEONE TO BE IN THE ARENA. AND MOST IMPORTANTLY, FOR THAT SMALL BUSINESS, WE CREATE A CUSTOMER BASE FOR THEM THAT THEY MAY NOT HAVE HAD BEFORE. IT'S A LAUNCHPAD. I'M GOING TO GO AHEAD, AND THAT'S ALL I HAVE. THANK YOU FOR LETTING ME SHARE THOSE INITIATIVES WITH Y'ALL. I'M GOING TO PASS IT OVER TO JOSH PILE, OUR OVG HOSPITALITY REGIONAL VP FOR THE FINANCES. >> AFTERNOON, COUNCIL. THANK YOU FOR HAVING US. WE'VE HEARD WHAT YOU GUYS HAVE ASKED OUT OF HOSPITALITY AND WE'RE MAKING THE STRIDES TO ENSURE THAT WE ARE GETTING IN WITH THE LOCAL COMMUNITY. WE DO RECOGNIZE THE IMPORTANCE BEHIND IT AND WE WANT TO MAKE SURE AS A GROUP, AS OVG HOSPITALITY, THAT WE'RE LISTENING TO WHAT'S BEEN BROUGHT TO US AND THAT I WE'RE REALLY ENACTING UPON IT. I WANTED A QUICK OPPORTUNITY JUST TO TALK THROUGH FINANCIALS REALLY QUICKLY FROM A HOSPITALITY STANDPOINT AND THE GROWTH THAT HAS BEEN SEEN OVER THE PAST THREE YEARS. IF YOU LOOK ON THE LEFT-HAND SIDE, TOTAL REVENUE, THAT'S TOTAL GROSS REVENUE THAT'S COMING INTO HOSPITALITY. OVER THE ESSENTIALLY THREE-YEAR PERIOD, TWO AND A HALF-YEAR PERIOD, WE'VE SEEN ABOUT A TWEE% INCREASE IN TOTAL GROSS REVENUE, WHICH IS GREATER ON THE RIGHT-HAND SIDE, AS THE ACTUAL NET BOTTOM LINE PROFIT, WHICH IS SEEN AN INCREASE OF OVER 55%. TO PUT IN PERSPECTIVE, THOSE FUNDS ON THE NET PROFIT SIDE ARE ACTUAL CITY FUNDS. THOSE ARE FUNDS GOING BACK TO THE CITY, NOT COMING BACK TO OVG. SO THAT IS SMART MANAGEMENT ON OUR TEAM. WE THINK WE HAVE A GREAT TEAM THAT HAS REALLY EXCELLED THIS YEAR. ALL OF THEM ARE LOCAL. I BELIEVE EVERY MANAGER ON OUR TEAM HAS BEEN PROMOTED FROM WITHIN THE PROPERTY AND CONTINUING TO GROW THEIR CAREER, WHICH WE FIND TO BE EXTREMELY IMPORTANT IN THE SUCCESS FROM A HOSPITALITY STANDPOINT. AND WE LOOK TO CONTINUE TO GROW THIS. WE THINK THERE'S GREAT OPPORTUNITY TO CONTINUE TO INVOLVE THE LOCAL COMMUNITY IN WHAT WE'RE DOING, WHAT MELANIE TALKED ABOUT TODAY. PLEASE KNOW THAT'S NOT GOING TO STOP. WE'RE GOING TO CONTINUE TO COME FORWARD WITH IDEAS AND LOOK FORWARD FOR THE OPPORTUNITY FOR US TO COMMUNICATE WITH LOCAL VENDORS, LOCAL BUSINESSES IN THE COMMUNITY AND CONTINUE TO GROW THAT RELATIONSHIP. THIS IS JUST A LIST OF SOME OF OUR -- THANKS, JOSH. THIS IS A LIST OF SOME OF OUR UPCOMING VENTS THAT WE HAVE GOING ON IN THE FACILITY. . SO TO CONCLUDE, JUST WANT TO HIT ON SOME OF THE HIGHLIGHTS. THE EVENT GROWTH IS UP 15.16% FROM FY '23 TO FY '25. OPERATING EXPENSES ARE DOWN OVER 25% OVER THAT SAME TIME PERIOD. OUR PARTNERSHIPS REVENUE, AS WE STATED, GREW 294% FROM DAY ONE TO NOW. WE'VE -- OUR COMMUNITY ENGAGEMENT, WE'VE ENGAGED WITH 11 NONPROFITS IN THE FACILITY AND OUR LOCAL VENDOR IMPACT FROM A VENDOR -- FROM A SALES PERSPECTIVE HAS GONE FROM SIX TO 53, WHICH IS A 780 PLUS PERCENT INCREASE. AS MELANIE SAID, WE HAVE INSTITUTED TECHNOLOGICAL ADVANCES, WHICH HAS DROPPED THE TRANSACTION TIME 62.5%. VERY MUCH TO THE DELIGHT OF OUR PATRONS AND WE'VE CREATED NEW REVENUE SOURCES, NAMELY THE ARENA MARKETPLACE WHICH HAS GENERATED OVER $220,000 IN FY '25 ALONE. I TWRIED TO GO AS QUICKLY AS I COULD TO TRY TO GET YOU GUYS TO LUNCH AT FAST AS POSSIBLE SO NOW I OPEN IT UP TO ANY QUESTIONS YOU MAY HAVE. >> Mayor Guajardo: OKAY. THANK YOU FOR THE PRESENTATION. COUNCILWOMAN PAXSON? >> Paxson: THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION AND THE GREAT INFORMATION IT PROVIDED. I DID HAVE JUST A COUPLE OF QUESTIONS. MINE ARE A LITTLE BIT MORE PARTICULAR TO THE PRESENTATION ON THE FOOD AND BEVERAGE SIDE WITH THE CONCESSION STAND BEING UTILIZED FOR LOCAL BUSINESSES. I WAS CURIOUS, WHEN DID WE LAUNCH THAT PROGRAM? THE STRATEGIC PLAN WAS COMPLETED LAST MONTH AND WE HAVE A MEMO READY TO GO OUT AND WE HOPE TO LAUNCH IT FOUR TO SIX MONTHS. WE HAVE A MEMO READY TO GO OUT AND I CAN KIND OF -- IT WILL COME TO YOU VERY SOON, BUT IT IS -- WE'RE HOPING TO GET THEM IN MID KIND OF ICE RACE SEASON, SO IT'S ALL READY TO ROCK AND ROLL. >> Paxson: OKAY. PERFECT. SO THAT ANSWERED MY NEXT QUESTION. I WAS GOING TO SAY, HOW MANY BUSINESSES HAVE TAKEN ADVANTAGE, BUT I'LL WAIT FOR THE REPORT ON THAT. > COULD YOU SPEAK A LITTLE BIT TO THE PROPOSED PROCESS FOR BUSINESSES SO THEY CAN PARTICIPATE, IS THERE A COST THAT'S GOING TO BE ASSOCIATED TO THEM TO PARTICIPATE, THAT KIND OF INFORMATION? >> SO WE HAVEN'T FINALIZED ANYTHING, AND THAT'S KIND OF IN THAT MEMO IS FINALIZING THE BUDGET AND WHAT THE FEES WILL LOOK LIKE. THEY'LL BE EXTREMELY LOW FOR THE LOCAL BUSINESS. NOT OUR TYPICAL CONTRACTOR COMES IN AT A CERTAIN PERCENTAGE. OF COURSE, WE NEED TO DECIDE, AND THAT'S SOMETHING THAT WE'LL GET STAKEHOLDER, CITY PARTNERS TO HELP DECIDE WHAT THAT LOOKS LIKE. BUT IT WILL BE OPEN AND WE'LL WORK WITH OUR MARKETING TEAM TO OPEN IT UP AND SEE HOW MANY PEOPLE WE CAN GET THAT WANT THAT LAUNCHPAD. >> Paxson: OKAY. THANK YOU FOR THAT INFORMATION. SO I HAVE A VERY THOROUGH APPRECIATION THAT YOU GUYS TOOK THAT KIND OF FEEDBACK AND FOUND A CREATIVE WAY TO INCORPORATE THAT IN. I KNOW THIS IS HOPEFULLY KIND OF ONE OF THOSE BEGINNING STEPS. WE WERE REALLY ALSO INTERESTED IN HAVING THE OPPORTUNITY OPENED UP, SO IF A GROUP WANTS TO HIRE A LOCAL CATERER FOR THE FACILITY OUTSIDE OF JUST THE CONCESSION STAND USE, PERHAPS THAT'S SOMETHING THAT'S COMING DOWN THE PIPELINE ALSO? >> YEAH. AND THAT'S A -- IF I SHOULD -- YEAH, I CAN KIND OF LEAN ON JOSH FOR THAT, BECAUSE WE DO HAVE SOME THINGS IN THE WORKS. >> YEAH, SO REAL IM QUICKLY, THERE'S LICENSING, HEALTH PERMITS, THINGS OF THAT THAT COME. SO TO SAY THAT'S OFF THE TABLE, ABSOLUTELY NOT. OUR INITIAL THOUGHT FROM A PREMIUM SIDE, LIKE MELANIE STATED, WE'RE GOING TO LOOK AT WAYS THAT WE COULD INCORPORATE SAY A LOCALE SALSA VENDOR INTO ALL OF OUR PACKAGES WHERE THEY WOULD HAVE RECOGNITION OF THEIR LOGO ON MENUS, THINGS OF THAT NATURE. SO WE'RE WORKING ON IT FROM A CATERING AND PREMIUM PERSPECTIVE. WE STARTED OFF WITH THIS LAUNCHPAD FIRST AND WE'RE GOING TO CONTINUE TO TRY TO GROW, TRY TO LISTEN AND REALLY TRY TO CREATE THOSE PARTNERSHIPS WITHIN THE COMMUNITY. >> Paxson: I APPRECIATE THOSE EFFORTS. I KNOW OUR LOCAL BUSINESSES ARE HERE TO SHINE, THEY OFFER GREAT PRODUCTS. I HOPE THAT YOU WOULD ALSO CONSIDER SOME SORT OF OPTION WHERE EVEN IF THERE'S A PERCENTAGE OF CATERING INCLUDED, THAT THERE IS AN OPTION TO UTILIZE THEIR FAVORITE PERSON OR -- >> AND WE'VE TALKED ABOUT WAYS THAT WE COULD POTENTIALLY PARTNER ON AN EVENT. >> Paxson: AWESOME. >> WE THINK THERE'S LOTS OF OPPORTUNITIES OUT THERE. WE WANTED TO GET THIS PROGRAM UP, GET THIS IN FRONT OF THE GROUP FIRST TO LET YOU KNOW THAT WE HAVE HEARD THE ASK AND WE ARE GOING TO CONTINUE TO BUILD ON THIS. >> Paxson: THANK YOU. I HOPE YOU WILL CONSIDER THAT ASK EQUALLY, SINCE YOU'VE DONE SUCH A GOOD JOB ON THE FIRST PART. >> ABSOLUTELY. >> Paxson: MY LAST QUESTION, WE ALSO WERE INTERESTED IN EXPLORING OPTIONS AND IDEAS TO RECOGNIZE LOCAL NONPROFITS. THOSE ARE GROUPS THAT, OF COURSE, PROVIDE OUR COMMUNITY A VERY THOROUGH ENRICHMENT IN A VARIETY OF WAYS AND I'M ENCOURAGED TO SEE THE NUMBERS WHERE YOUR NET FORECAST FOR THIS YEAR IS LOOKING AT CLOSE TO 3.3 MILLION, SO IT LOOKS LIKE YOU GUYS ARE DOING A GREAT JOB, AND HOPEFULLY THERE'S SOME SPACE IN THERE TO EMBRACE OUR NONPROFITS. I -- FOR ME, AND I DON'T WANT TO BEAT A DEAD HORSE, BUT I THINK IT'S A HUGE OPPORTUNITY, AS A LEADING VENUE THAT REPRESENTS THIS CITY, JUST ANOTHER WAY THAT WE CAN EMBRACE OUR PARTNERS LOCALLY WHO ARE DOING GOOD WORK, SO HOPEFULLY THAT'S BEING CONSIDERED COMING DOWN THE PIPELINE. >> ABSOLUTELY. >> I CAN -- OH. >> THAT'S -- >> Paxson: I LIKE THAT, EVERYBODY STEPS UP. >> BECAUSE THAT'S PART OF THE GRANT PROGRAM THAT WE KIND OF DISCUSSED IS GOING TO BE BUILT AROUND THE NONPROFITS FROM AN EXPENSE PERSPECTIVE. SO IF THERE'S NONPROFIT WHOSE ARE LOOKING TO USE THE FACILITY BUT THERE ARE EXPENSES THAT THEY WANT TO KIND OF GET TO BE A LITTLE BIT TOO HIGH FOR THE FACILITY COSTS, ABSOLUTELY, THAT'S ONE WAY WE'RE LOOKING AT ALSO REACHING OUT TO THEM. >> Paxson: OKAY. MAYBE >> Paxson: MAYBE THERE'S SOMETHING THERE WHERE YOU GUYS CAN BE LISTED AS SPONSORS. >> 100%. >> Paxson: THANK YOU, GUYS. >> Mayor Guajardo: COUNCILMAN CANTU. >> Cantu: THE $1.3 MILLION IS THAT WITH THE NEW NAMING RIGHTS? >> NO. >> Cantu: COOL. >> WE DON'T -- WE'RE NOT RECOGNIZING THAT REVENUE AT THIS POINT . >> Cantu: GOT IT. HEATHER, DO WE HAVE MY NUMBERS I REQUESTED? >> [OFF MIC] >> Cantu: THEY DON'T HAVE THE NUMBERS? YOU GUYS CAN'T JUST LOG IN AND SEE HOW MANY TICKETS WE SOLD LAST YEAR? >> YEAH, WE CAN. >> Cantu: CAN WE GET THAT NUMBER? >> I CAN DEFINITELY GET IT TO YOU BY THE END OF THE DAY. >> Cantu: OKAY. WHAT IS THE AVERAGE PERCENTAGE OF THE TICKET SALES? >> AVERAGE PERCENTAGE -- >> Cantu: IN OTHER WORDS, I BUY TWO TICKETS, THEY'RE 150 BUCKS PLUS THE PERCENTAGE OF THE SERVICE FEES. HOW MUCH ARE THE SERVICE FEES PERCENTAGE OF A TICKET? >> IT JUST CHANGED DUE TO LEGISLATION. I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD. I CAN PULL IT UP. I KNOW WHAT IT WAS PREVIOUSLY BUT I DON'T KNOW WHAT IT IS NOW BASED ON WHAT THOSE CHANGES ARE. >> Cantu: DO THOSE FEES GO BACK INTO -- >> IT GOES BACK INTO THE OPERATING. FACILITY OPERATING, YES. >> Cantu: HOW LONG IS THAT CONTRACT FOR WITH TICKETMASTER? >> I BELIEVE ANOTHER THREE YEARS. >> Cantu: HOW LONG WAS THE ORIGINAL CONTRACT? >> FIVE. >> Cantu: OKAY. BUT THE FEES ARE GOING BACK TO THE CITY? >> CORRECT. >> Cantu: HEATHER, HOW CAN I GET AN OPERATING EXPENSE ON OVG'S BREAKDOWN BY -- CAN I GET THAT ITEM BY ITEM? OKAY. >> Cantu: THAT IS IT FOR RIGHT NOW. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: A LITTLE CONSTRUCTIVE CRITICISM. WE JUST HAD A WEDDING FAIR THERE A FEW WEEKS AGO BECAUSE WE OWN A WEDDING VENUE. IT WAS PRETTY CHAOTIC BECAUSE IT WAS VERY DIFFICULT GETTING IN AND OUT WITH PROPS IN THOSE ELEVATORS. THEY WERE ABLE TO USE THE FREIGHT ELEVATOR. IT WAS VERY, VERY SLOW. AT ONE POINT IT DIDN'T WORK. THEY USED TO LET YOU GO TO THE LOADING DOCKS SO I'M HOPING YOU CAN SCHEDULE A TIME WHERE THEY COME IN THERE. USED TO, THAT'S WHAT IT WAS. >> WE ACTUALLY HAD AN EVENT IN THE EXHIBIT HALL AT THE SAME TIME. >> Vaughn: I KNEW THAT. >> PLUS WE HAVE AN HVAC PROJECT GOING ON. YES, LOGISTICALLY THIS ONE WAS A LITTLE BIT MORE DIFFICULT JUST BECAUSE THERE WAS ALREADY SOMETHING IN THE SPACE THEY'RE NORMALLY IN SO THEY HAD TO BE IN A SEPARATE SPACE AND IT LOGISTICALLY DID NOT WORK AS WELL AS IT HAD IN PREVIOUS YEARS. >> Vaughn: AS BIG AS IT IS YOU COULD HAVE WENT TO OTHER PARTS. THERE'S GOT TO BE A BETTER WAY BECAUSE OF THE PROPS. IT'S HARD TO GET IN AND OUT OF THE ELEVATORS WITH THOSE PROPS. JUST A LITTLE CRITICISM. CONSTRUCTIVE. >> APPRECIATE THAT. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: THANK YOU, MAYOR. IN YOUR FINANCIALS ON PAGE 2, YOU HAVE 2% VENUE HOT FUND REVENUE. IS THAT PER CONTRACT? THAT WE HAVE TO PROVIDE THE 2% OF THE HOT TAXES? >> ACTUALLY, THAT 2% IS SPECIFICALLY FOR THE AMERICAN BANK CENTER AND SO THAT WAS SOMETHING THAT COUNCIL APPROVED. WE ADDED THAT 2% SO WE HAVE THE 7% WHICH IS THE LOCAL PORTION. THEN THERE'S 2% THAT GOES SPECIFICALLY BACK TO THE CONVENTION CENTER FOR CONVENTION CENTER PURPOSES. >> Hernandez: OKAY. SO THAT IS SPECIFICALLY TIED TO THE REVENUE FOR OVG OR -- >> NO, THIS IS NOT SPECIFICALLY OVG REVENUE. THESE ARE THE OPERATING EXPENSES FOR THE CONVENTION FOR THE COMPLEX. >> Hernandez: WITHOUT THE TAXPAYER FUNDING THROUGH THE HOT TAXES, YOU WOULD HAVE HAD, IN 2024, $1.6 MILLION IN NEGATIVE REVENUES AND IN 2025 ABOUT $900,000 IN NEGATIVE REVENUES. YOU WEREN'T COUNTING THE TAXPAYER SUBSIDY? >> THAT'S CORRECT. >> Hernandez: IS THAT GOING FORWARD STAYING THE SAME, ASSUMING WE GET MORE FUNDING FROM HILLIARD SPONSORSHIP AND THEN THEY SHOULDN'T REQUIRE AS MUCH OR DOES IT CHANGE THAT? >> THE GOAL IS TO HAVE DAY-TO-DAY OPERATIONS BEING SELF-SUSTAINING. THAT IS SOMETHING THAT WE'RE WORKING TOWARDS. OVG IS DOING A GOOD JOB OF DIVERSIFYING THOSE REVENUES. SO IT'S NOT JUST FROM FOOD AND BEVERAGE AND NOT JUST RENTALS FROM THE COMPLEX. BUT WE'LL STILL CONTINUING USING THAT 2% FOR WHETHER IT'S CAPITAL EXPENSES, CAPITAL IMPROVEMENT, THINGS ALONG THOSE LINES. >> Hernandez: RIGHT. THIS $4 MILLION, WHICH IS NOT CONSISTENT BASED ON WHATEVER YOU GET FROM HOT -- >> EXACTLY. IT IS 2% OF -- YOU KNOW, IT'S 2 CENTS FOR ALL THE HOTEL -- >> Hernandez: SO WE CAN, IN THE FUTURE, MOVE THAT OVER TO CAPITAL IMPROVEMENTS. OBVIOUSLY WE HAVE A LOT OF CAPITAL IMPROVEMENT ISSUES WITH THE AMERICAN BANK CENTER. >> IF YOU SEE WE'VE GOT SEVERAL MILLION DOLLARS THAT FELL TO THE BOTTOM LINE. THAT IS BEING UTILIZED FOR CAPITAL IMPROVEMENTS, CAPITAL REPAIRS, CAPITAL PROJECTS. >> Hernandez: OKAY. BUT RIGHT NOW IT'S NOT ENOUGH TO COVER THE ENTIRE -- >> THAT IS CORRECT. >> Hernandez: I GUESS WE'LL NEED TO SEE THIS FOR THE NEXT FOLLOWING YEAR IN MAKING SURE THAT GOES OVER TO CAPITAL IMPROVEMENTS. CAN YOU GIVE US THAT SCHEDULE IN TERMS OF WHAT FUNDING IS -- OBVIOUSLY WE HAVE THE 1/8TH CENT SALES TAX. THERE IS SOME PORTION THAT GOES TO CAPITAL IMPROVEMENTS. SO WE'LL NEED TO SEE THAT BREAKDOWN AS WELL. >> WE'LL BE BRINGING THAT FORWARD TO CITY COUNCIL. IT'S NOT SOMETHING WE INCLUDED IN THE BUDGETING PROCESS SINCE WE'RE WORKING THROUGH THAT, BUT WE WILL BE BRINGING THAT FORWARD FOR CONSIDERATION BY CITY COUNCIL. >> Hernandez: OKAY. THOSE WERE KIND OF THE MAIN QUESTIONS. OBVIOUSLY, WE STILL NEED, YOU KNOW, GOT TO HAVE THAT PLAN OUTLINED. OBVIOUSLY, I WANT TO HAVE THE UPDATE ON THE HVAC SYSTEMS, BOTH ON THE ARENA SIDE AND THE CONVENTION CENTER SIDE. >> YES. WE DO HAVE A LOT OF CAPITAL PROJECTS GOING ON. >> Hernandez: HAVE WE COMPLETED THE STAGE OF IMPROVEMENTS ON THE -- >> SO FROM THE HVAC PERSPECTIVE -- I'LL TOUCH ON THAT ONE FIRST. PHASE 1 SHOULD BE COMPLETED THIS WEEK. THEY SHOULD BE TAKING TEMPORARY CHILLERS OUT. EVERYTHING ELSE SHOULD BE HOOKED UP, THEY WERE HOPING BY THE END OF THE DAY TODAY SO THAT WAY THE NEW CHILLERS AND COOLING TOWER WILL BE FUNCTIONAL ON OUR SYSTEM BY TODAY OR TOMORROW. >> Hernandez: THAT'S THE ARENA SIDE? >> THAT IS THE ARENA SIDE, YES. WE ARE STILL IN THE PROCESS OF DECOUPLING THE OTHER FACILITIES OFF OF THE CONVENTION CENTER HVAC. THAT IS GOING TO BE PROBABLY TWO YEARS, I WILL GUESS. I'LL DEFER TO ELSIE BECAUSE SHE PROBABLY KNOWS A LITTLE BIT MORE. UNTIL WE GET THE ART MUSEUM, SCIENCE AND HISTORY, ART PLAYHOUSE DECOUPLED FROM THE FACILITY, WE CAN'T SHUT DOWN THE HVAC FOR THE CONVENTION CENTER SIDE. SO THAT'S WHAT THE PROCESS IS THERE. THE STAGE PROJECT IS STILL ONGOING. THE ORIGINAL DESIGN DID NOT MEET THE CRITERIA THAT IT NEEDED TO SO THEY HAD TO MAKE SOME ADJUSTMENTS. THOSE ADJUSTMENTS ARE CURRENTLY BEING MADE NOW. I BELIEVE IT'S NEXT WEEK WE HAVE A MEETING WITH THEM WHERE THEY'RE GOING TO LET US KNOW WHAT THAT NEW DESIGN IS TO MAKE SURE THAT WE CAN CONTINUE TO DO EVERYTHING THAT WE'RE DOING FROM AN EVENT PERSPECTIVE. AND WE SHOULD START THAT VERY SHORTLY THEREAFTER. >> Hernandez: OKAY. >> ELSIE ASSISTANT DIRECTOR, OFFICE OF ECONOMIC DEVELOPMENT. THERE IS CURRENTLY WORK UNDERWAY FOR THIS STAGE BUT I WILL SAY THE SELENA IS ACTUALLY UNDER CONSTRUCTION RIGHT NOW. IT IS NOT -- THE STAGE IS NOT THE ONLY PROJECT THAT WAS IN THE WORKS FOR THIS FISCAL YEAR. SO THERE IS SOME CONSTRUCTION THAT'S BEING DONE ON THE LOADING DOCK AREA. SO WHEN YOU DRIVE THROUGH SHORELINE YOU CAN PROBABLY SEE IN THOSE DOORS THERE CLOSEST TO THE ART MUSEUM ARE CURRENTLY BEING REMODELED. SO THAT'S BEING TORN DOWN FROM THE LARGE DOOR THAT WAS THERE. THAT WAS NOT ADEQUATE ANYMORE. AND WE HAD SOME WATER INTRUSION AND WATER ELEMENTS COMING IN. THAT WILL BE REPLACED AND COMPLETED IN THE NEXT COUPLE OF DAYS. AND SO ONCE THAT'S DONE, THEN THE NEXT STAGE WILL BE MOVING ON TO THE SELENA STAGE RECONSTRUCTION. WE'RE WORKING -- >> Hernandez: THE REASON I ASKED ABOUT THE SELENA STAGE IS I THOUGHT THERE WERE SAFETY ISSUES THERE. I GUESS, PETER, WE'LL NEED A FULL BRIEFING OF ALL THE CAPITAL IMPROVEMENTS AND WHERE WE ARE AND WHAT THE TIMELINE IS SO WE CAN HAVE A FULL VISIBILITY TO IT. >> Zanoni: YES, SIR. >> Hernandez: THANK YOU. >> Mayor Guajardo: COUNCILMAN ROY. >> Edmonds: I'M NOT GOING TO GO BACK OVER THE SAME THING BECAUSE I WAS -- AS FAR AS THE CAPITAL IMPROVEMENTS GO, A LIST OF THINGS THAT ARE IN THE WORKS. ONE PARTICULAR -- I KNOW IN THE PAST WE TALKED ABOUT THE ICE-MAKING MACHINE AND WE HAVE ONE BUT IT WAS INOPERABLE, SO WE WERE RENTING, RIGHT? >> YES. WE ARE STILL RENTING THE TEMPORARY ICE CHILLER. SO THAT WILL BE IN ON WEDNESDAY FOR US TO PUT ICE IN. >> Roy: WHAT DID YOU SAY? >> THE TEMPORARY CHILLER WILL BE IN ON WEDNESDAY OF THIS WEEK SO WE CAN PUT ICE IN IT FOR TRAINING CAMP. WE HAVE STARTED THE DESIGN FOR THE NEW PERMANENT SYSTEM. WE'RE PROBABLY TWO YEARS AWAY FROM ACTUAL CONSTRUCTION ON THAT. >> Roy: THIS KIND OF GOES BACK TO SOMETHING I HAD TALKED ABOUT BEFORE. PETER, YOU KNOW, BACK IN -- I THINK IT WAS EARLY ON IN 2017 OR '18 WITH THE PRIOR MANAGEMENT WE HAD KIND OF -- THERE WAS -- I DON'T KNOW IF YOU CALL IT AN ADVISORY BOARD, BUT THERE WAS CERTAINLY A GROUP. AND WE HAD A COUNCIL MEMBER THAT WAS ON THAT GROUP THAT WOULD KIND OF BE PART OF THE MEETINGS. I FELT LIKE THERE WAS A BETTER COMMUNICATION PIECE IN JUST UNDERSTANDING WHERE WE'RE AT IN CERTAIN THINGS. AND I BROUGHT THAT UP SEVERAL TIMES IN THE PAST. DO YOU HAVE -- I KNOW THE AQUARIUM, FOR EXAMPLE. THEY HAVE A BOARD THAT THEY MEET. DO YOU HAVE ANYTHING MADE UP OF COMMUNITY MEMBERS AND THAT THAT YOU MEET ON A REGULAR BASIS? >> NO, WE MEET WITH THE CITY REGULARLY ON A WEEKLY BASIS JUST FOR A TOUCH BASE. THERE'S NOT LIKE A FORMAL BOARD OR GROUP. >> Roy: NO, I'M JUST TALKING ABOUT A ADVISORY BOARD. AS YOU GUYS ARE PLANNING THINGS OR TALKING ABOUT THINGS OR WHATEVER, WHETHER THEY MEET ONCE A QUARTER OR SOMETHING LIKE THAT, I JUST THINK IT WOULD BE A GOOD PIECE. BECAUSE, YOU KNOW, YOUR VENUE ACTS AS A CIVIC -- >> I THINK WE DO MEET WITH -- >> SORRY. IF I CAN INTERRUPT ON THAT END. THERE'S A NEW TASK FORCE THAT WAS DEVELOPED WITH VISIT CORPUS CHRISTI. SO DANNY DOES PROVIDE UPDATES TO THE CITY. AND THEN IS ACTUALLY IN COMMUNICATION DIRECTLY WITH VISIT CORPUS CHRISTI. AND WE JUST KICKED OFF -- DEVELOPED A TASK FORCE THAT INCORPORATES THE TPID BOARD REPRESENTATIVE HOTELS OVG THE CITY, AND REPRESENTATIVES FROM VISIT CORPUS CHRISTI. AND SO PART OF THAT TASK FORCE IS TO DEVELOP WHAT ARE SOME OF THE CONSTRAINTS AND IMPACTS OF CONVENTION BUSINESS IN CORPUS CHRISTI. >> Roy: IS THE MAYOR INVOLVED IN THAT? >> THE MAYOR, NO. I'M IN THE TASK FORCE AS FAR AS THE CITY. IT'S A WORKING -- ACTIVE WORKING GROUP. THE MAYOR IS INVOLVED WITH THE VISIT CORPUS CHRISTI. >> Mayor Guajardo: WHEN DID THIS START? >> THIS WAS APPROVED MARCH OR SO. JUST VERY RECENTLY. WE HAVE THE CHAIRMAN FROM THE TPID BOARD THAT SITS ON THAT TASK FORCE. WE HAVE I THINK THE PRESIDENT FOR THE VISIT CORPUS CHRISTI THAT SITS ON IT. AND THE CEO AND REPRESENTATIVES FROM HAVE THE CORPUS CHRISTI AND HOTELIERS. IT'S MEANT TO BE A WORKING GROUP, ACTUALLY GOING THROUGH THE CIP. GOING THROUGH WHAT IS THE CONVENTIONS WORKING ON TO ATTRACT BUSINESS, MARKETING, AND WHATNOT. SOME OF THOSE ELEMENTS INCLUDED A WALK-THROUGH EARLY ON WITH THAT TASK FORCE OF THE FACILITY. AND WALKING THROUGH SOME OF THE AREAS THAT WE CAN LOOK TOWARDS IMPROVEMENT. >> Roy: WELL, I JUST THINK IT'S IMPERATIVE. I UNDERSTAND -- I'M GLAD YOU GUYS HAVE A TASK FORCE -- BUT I WOULD LIKE TO HAVE MORE DIALOGUE IN TERMS OF UNDERSTANDING IF WE SHOULD HAVE A COUNCIL MEMBER OR EVEN THE MAYOR'S ROLE. I THINK THAT'S IMPORTANT. I THINK A LOT OF THE QUESTIONS THAT I'M HEARING AND THE THINGS THAT WE'VE BEEN PROPOSING BEFORE IN TERMS OF UNDERSTANDING WHERE WE'RE AT WITH CERTAIN PROJECTS AND THAT, THOSE QUESTIONS STILL CONTINUE TO COME UP AND WE'RE STILL ASKING THE SAME QUESTIONS. SO I THINK AT THIS POINT IN TIME WE REALLY NEED TO TAKE A LOOK AT THAT. THANK YOU. >> Mayor Guajardo: YEAH. SO JUST BACK TO THE TASK FORCE. I DON'T THINK ANYBODY UP HERE KNEW ANYTHING ABOUT THAT. I'M ASSUMING THAT IS SOMETHING THAT WAS CREATED UNDER VISIT CORPUS CHRISTI. >> THAT IS CORRECT. >> Mayor Guajardo: WE NEED TO GET SOME INFORMATION ON THAT AND KNOW WHAT IS THE MISSION, WHO IS ON IT. ALL THE DETAILS. >> ABSOLUTELY. >> Mayor Guajardo: WE DON'T KNOW. AND KNOW ONE FROM HERE IS ON IT. AGAIN, I DON'T KNOW -- THIS IS THE FIRST TIME I'VE HEARD ABOUT IT. SOME DETAILS ON THAT IS CRITICAL. AND FOR THE REASON -- WHAT YOU JUST MENTIONED, COUNCILMAN, TO STAY IN COMMUNICATION AND KNOW WHAT IS IT WE'RE LOOKING AT. YOU KNOW -- >> [OFF MIC] [LAUGHTER] >> WE'LL GO AHEAD AND PROVIDE THAT, MAYOR, AND THERE WAS A RESOLUTION THAT WAS PASSED, VISIT CORPUS CHRISTI. SO WE CAN CERTAINLY PROVIDE THAT TO COUNCIL. AND THEN OVG WAS ALSO TASKED FROM THE LAST TIME WE WERE HERE TO DO A QUARTERLY UPDATE. SO WE'LL GO AHEAD AND BE SENDING THAT TO COUNCIL MOVING FORWARD. >> Mayor Guajardo: THANK YOU. COUNCILMAN BARRERA. >> Barrera: ELSIE, HANG AROUND. YOU KNOW, I'M GLAD TO HEAR ABOUT THAT BECAUSE ONE OF THE THINGS I'M CURIOUS IS THAT -- DON'T GO TOO FAR. HOW DO WE DETERMINE AN OVERALL -- IS THERE A FORMULA TO DETERMINE AN OVERALL ROI FOR THE ENTIRE COMMUNITY? WHEN WE WENT THROUGH THE PROP A DEAL, THE HOTELIERS FELT THEY WEREN'T A PART OF IT -- A GROUP OF THEM DID. I THINK THAT'S THE WHOLE THING. THEY OBVIOUSLY WANT TO ADVOCATE FOR MORE HOTEL ROOM NIGHTS VERSUS, YOU KNOW, IF I HAVE A QUICEANERA FOR MY GRANDDAUGHTER. IS THERE A FORMULA WE ADVOCATE SO MANY NIGHTS FOR CERTAIN THINGS THAT AFFECT THE OVERALL COMMUNITY? IS THAT SOMETHING THIS TASK FORCE IS DOING? EITHER ONE OF YOU. >> IF I'M UNDERSTANDING CORRECTLY, THAT'S WHAT WE TOUCHED ON EARLIER IN OUR BOOKING PROCESS AND WHAT EVENTS WE SHOULD BE PUTTING IN AND WHEN. WE WORK WITH VCC CLOSELY WHERE WE MEET WEEKLY WITH THEIR SALES STAFF. I MEET PROBABLY MONTHLY WITH BROOKE SINCE SHE'S GOT STARTED, TO GET EVERYTHING GOING. CURRENTLY, WE'RE KIND OF DEALING WITH IT AS THINGS COME. THERE'S NOT A SET NUMBER THAT 60% OF THE EVENTS HAVE TO BE CONVENTION CENTER EVENTS THAT ARE TIED TO ROOM NIGHTS VERSUS 40% ARE CONVENTION CENTER EVENTS THAT ARE LOCAL. LIKE, THERE'S NOT A CALCULATION THAT WE KIND OF WORK WITH IN THAT REGARD. I THINK FOR US THE BOOKING CYCLES THAT WE HAVE MAKE IT A LITTLE BIT EASIER TO GET THOSE THINGS WORKING TO WHERE A LOT OF THE VCC CONVENTION BUSINESS THAT THEY'RE BRINGING IN IS BOOKING THREE, FOUR YEARS OUT. AND A LOT OF THE LOCAL BUSINESS IS USUALLY IN THE 12 TO 24-MONTH TIME-FRAME. SO CURRENTLY THAT'S KIND OF HOW IT WORKS. AND THEN WE SQUEEZE THINGS IN OR MOVE THINGS AROUND IN THE CALENDAR AS BEST WE CAN. BUT RIGHT NOW THERE'S NOT AN EQUATION WHERE WE SAY WE HAVE TO DO XYZ IN REGARDS TO THE VISION OF IT. >> Barrera: DOES THAT HAPPEN IN OTHER MARKETS? AT THAT POINT THEN A DEVELOPER COMES IN AND SAYS, DO YOU KNOW WHAT? THERE'S A MARKET FOR BIG CONCERTS HERE. AND THE CONVENTION CENTER ARENA IS FULL. IT'S A MUNICIPAL CENTER. IT'S A CIVIC CENTER, I GET THAT. I GUESS THAT'S MY THING. IF WE COMMUNICATE THAT -- AND I JUST GO BACK TO THE PROP A THING. A GROUP OF HOTELIERS FELT THEY WEREN'T A PART OF IT. NOW, I DON'T KNOW IF THAT WAS OUR FAULT OR NOT BECAUSE THAT'S WHAT GOT ME ENGAGED. AND SO I GUESS THAT'S MY THING. IF WE'RE COMING TO THAT POINT SAYING THERE'S A BALANCE THAT WE KNOW HAVING JELLY ROLL HERE, WHO I NEVER HEARD OF -- IN FACT, I WAS SHOCKED. I SAW HIM ON THE CMAs. I WAS LIKE, WHO IS THAT GUY? IF I LOOKED AT HIM I PROBABLY WOULD HAVE NEVER LISTENED TO HIM. SHOWS YOU THAT I'M GETTING UP IN AGE. BUT I THINK THAT'S THE THING. DO WE DETERMINE -- IS THERE A WAY OR IS THERE A STANDARD PRACTICE? YOU DON'T HAVE TO ANSWER. IT'S RHETORICAL IN NATURE, SO DON'T STOP ME, MILES. THERE'S AN ROI DETERMINED FOR THE ENTIRE COMMUNITY AS A WHOLE VERSUS JUST THE BOTTOM LINE OF THE CENTER. I'M INTERESTED IN THAT. >> THAT'S PART OF THE DIFFERENCES IN THE DIFFERENT BUSINESS THAT WE'RE LOOKING AT. THE CONVENTION CENTER BUSINESS THAT WE'RE BOOKING. WE ARE FACTORING IN ECONOMIC IMPACT AND WE ARE MAKING THOSE TYPE OF -- WE'RE MAKING THOSE KIND OF DEALS ON THAT BUSINESS KNOWING THAT IT'S NOT ABOUT WHAT THE BOTTOM LINE IS TO THE FACILITY. IT'S ABOUT WHAT DOES THAT ECONOMIC IMPACT NUMBER LOOK LIKE AND THAT GOES INTO OUR ADDITION-MAKING PROCESS AND WE GET THAT INFORMATION FROM VCC. THEY HAVE BEEN A GREAT PARTNER. AS FAR AS THEIR STANDARD OF THIS IS THE EVENT, THIS IS THE ROOM NIGHT, THIS IS THE ECONOMIC IMPACT. HOWEVER, WE NEED TO DO X, Y, AND Z TO HELP THEM OUT. THAT'S DEFINITELY IN OUR DECISION-MAKING PROCESS. >> Barrera: WE'RE NOT GOING TO TELL CCISD, SORRY, WE LOOKED A BIG CONCERT. I KNOW IT'S IMPORTANT. WE TALKED ABOUT NONPROFITS AND I'M OF THE FIRM BELIEF THAT A TAXPAYER-FUNDED VENUE SHOULD NOT COMPETE WITH THE PRIVATE SECTOR. I THINK SOMETIMES IF WE OFFER A REDUCED PRICE -- THERE'S A BALANCE. WE WANT TO HELP NONPROFITS. BUT THAT'S THE THING. AS LONG AS THERE'S SOME PROCESS OF WHICH THEY CAN APPLY FOR IT OR WHATEVER. I JUST DON'T WANT TO ENSURE THAT IF SOMEBODY PUTS TOGETHER A PRIVATE VENUE WHERE THEY'RE HAVING EVENTS AND BECAUSE WE'RE TAXPAYER-FUNDED, WE'RE ABLE TO GIVE THEM A LOWER PRICE. JUST BE COGNIZANT. >> UNDERSTOOD. >> Barrera: THANK YOU VERY MUCH. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: BEING A BIG JELLY ROLL FAN -- JUST THROWING THAT OUT THERE. ALL THE COOL KIDS ARE. I DON'T KNOW WHERE ROLAND HAS BEEN ALL HIS LIFE. BUT I'M GOING TO BOUNCE AROUND HERE. I'M STILL LEARNING MY WAY. THANKS DANNY. I THINK THE NUMBERS ARE GOOD. I WANTED TO TALK ABOUT THE HOT. IS THAT HOT FUND, HAS THAT BEEN THAT WAY FOR YEARS AND I SHOULD KNOW. THE 2% OF THE TOTAL? >> YES. SO ACTUALLY, IF I REMEMBER CORRECTLY. SO COUNCIL DID APPROVE THAT WHEN THE DEBT WAS ISSUED FOR THE IMPROVEMENTS AT THE CONVENTION CENTER. THAT 2 CENTS OR 2% WAS UTILIZED TO PAY FOR THAT DEBT SERVICE. AND NOW THAT THAT DEBT HAS BEEN FULLY -- HAS BEEN PAID IN FULL, NOW WE'RE ABLE TO UTILIZE IT FOR OTHER CAPITAL-TYPE NEEDS. OPERATIONS, THINGS ALONG THOSE LINES. >> Scott: RIGHT NOW IT'S USED FOR OPERATIONS, NO? >> A PORTION OF IT IS. A PORTION OF IT IS USED TO MAKE THE -- CLOSE THE GAP, I GUESS YOU WOULD SAY. >> Scott: SURE. >> BUT A LOT OF THAT IS ALSO GOING INTO CAPITAL IMPROVEMENTS, HELPING WITH THE CAPITAL PROJECTS, THINGS ALONG THOSE LINES. >> Scott: SO WHEN I'M LOOKING AT WHATEVER SLIDE THIS IS, THE FINANCIAL SLIDE, AND IT SAYS 2% HOT REVENUE, HOT FUND REVENUE, IS THAT USED FOR CAPITAL IMPROVEMENTS AND OPERATING? >> IF YOU GET DOWN TO THE BOTTOM THERE IS A COUPLE OF MILLION DOLLARS LEFT. OUT OF THE 4.1, A LITTLE UNDER 2 MILLION WERE USED FOR OPERATIONS. AND THEN 2.5 THEN CAME OUT TO BE USED FOR OTHER CAPITAL IMPROVEMENTS. >> Scott: INTERESTING. ALL RIGHT. GODDOG IT. WE HAVE A 2.5 NET AND PART OF THAT IS THE $4 MILLION IN HOT -- WHICH IS FINE. IT'S BETTER THE AD VALOREM TAXES. THAT'S A WONDERFUL THING. >> EXACTLY. >> Scott: THERE'S NO SALES TAX REVENUE THAT FLOWS THROUGH THIS. >> THERE'S NO PROPERTY TAX REVENUES, THERE'S NO SALES TAX REVENUE SO IT IS WHOLLY SUPPORTED EITHER THROUGH THE REVENUES PRODUCED THROUGH THE OPERATIONS OR THROUGH THE 2% VENUE TAX. >> Scott: OKAY. BUT OF THE 2% HOT MONEY THAT GENERATED $4 MILLION, SOME OF IT'S USED -- SO WHEN I SEE IT PLUGGED IN THERE I'M THINKING ALL OF THAT IS GOING TO OPERATING. WHAT AM I MISSING HERE? >> $16.2 MILLION IN REVENUE TOTAL. YOU'VE GOT $13.7 MILLION IN EXPENSES. AND SO THAT LEAVES NET INCOME BEFORE CAPITAL EXPENSES. SO 2.5 WAS PROGRAMMED FOR CAPITAL EXPENSES. >> Scott: GOT IT. SO YOU'RE ASKING QUESTIONS THAT I WAS INTERESTED IN. SO THE TICKETMASTER FEES -- THAT'S FOR YOU, DANNY. SO THERE'S $100 TICKET. WHAT PERCENT USED TO BE FOR FEES BEFORE NEW LEGISLATION? >> USED TO BE 18. >> Scott: SO $18 OR $118. AND WE HAVE THIS AGREEMENT WITH TICKETMASTER, RIGHT, I GUESS? THAT'S A COUPLE OF YEARS IN. A COUPLE YEARS LEFT. AND OF THAT $18, HOW MUCH GOES TO YOU AND HOW MUCH GOES TO THE BUILDING? >> 60% OF THAT GOES TO THE BUILDING. 40% GOES TO TICKETMASTER. >> Scott: I GOT TO DWELL ON THAT. THAT'S NEW INFORMATION. SO THE $18 IN TICKETMASTER REVENUE -- >> JUST A CLARIFICATION. YOU SAID GOES TO YOU. NONE OF THIS GOES TO OVG. >> Scott: THAT'S WHAT I WAS ASKING. >> THE FACILITY. YEAH. NONE OF THE FUNDING SOURCES THAT COME INTO THE FACILITY -- NONE OF THAT IS OVG MONEY. EVERY DOLLAR THAT COMES INTO THE BUILDING IS CITY FUNDS. >> Scott: THAT'S GOOD TO KNOW. IT'S BEEN MONTHS, THEY GOT THIS DEAL WITH TICKETMASTER AND $5 GOES TO THEM AND NOW YOU'RE TALKING ABOUT THE OTHER $10. >> THAT IS NOT HOW THAT WORKS. AGAIN, EVERY DOLLAR OF REVENUE THAT COMES INTO THE FACILITY IS A CITY DOLLAR. >> Scott: SURE. >> MANAGEMENT FEES IS THE ONLY MONEY. >> Scott: WHEN YOU SAY 60% GOES TO? >> THE FACILITY. >> Scott: WHAT'S THE OTHER 40% GO TO? >> TICKETMASTER. >> Scott: GOT IT. >> OVG IS OUR MANAGEMENT COMPANY. >> Scott: RIGHT. >> ALL OF THE MONEY THAT COMES IN THROUGH OPERATIONS COMES INTO A CITY BANK ACCOUNT AND IT IS FOR THE OPERATIONS OF THE CENTER, ALONG WITH ALL THE EXPENSES COME INTO THAT -- ARE PAID OUT OF THAT SAME BANK ACCOUNT. OVG IS COMPENSATED THROUGH A SET MANAGEMENT FEE ALONG WITH A SHARE OF REVENUES AND PROFITS. ON THE FINANCIAL STATEMENT YOU SEE THE MANAGEMENT FEES. THAT IS WHAT OVG HAS PAID FOR THEIR SERVICES AT THE AMERICAN BANK CENTER OR AT THE CONVENTION CENTER. AND SO WHEN WE'RE TALKING ABOUT THEM AND THEY AND US AND WHATEVER, THE 60% FOR TICKETMASTER COMES INTO THE FACILITY. THE 40% GOES TO TICKETMASTER. YEAH. SO IT'S NOT TO OVG. >> Scott: I GET THAT. I LEARNED THAT. BUT NOW I'M JUST DIGGING A DEEPER HOLE. WHERE DOES THE 60% GO IN THESE FINANCIALS? IS IT EVENT REVENUE? >> IT'S EVENT REVENUE. YEP. >> Scott: FEES, TICKET SALES, TICKETMASTER FEES. YOU GAVE ME THE OLD NUMBER. YOU SAID THAT'S CHANGING BECAUSE THERE'S NEW LEGISLATION THAT SAYS YOU CAN'T CHARGE AS MUCH? >> YEAH, THE NEW LEGISLATION, THERE'S -- >> Scott: WE STILL GET OUR MONEY THOUGH, RIGHT? IT DOESN'T MATTER. I GOT WHAT I NEEDED OUT OF YOU. MY ORIGINAL POSITION WAS SOMETHING WAS CARVED OFF THE TOP THAT WENT STRAIGHT TO Y'ALL. YOU'RE TELLING ME IF THERE'S $10 IN FEES, TICKETMASTER GETS 4 AND THE FACILITY GETS 6 AND THEN IT DROPS DOWN THROUGH AND THEN WE PAY YOU BASED ON -- >> CORRECT. >> Scott: SO I WANT TO MAKE SURE THAT -- MY SENSE IS WE'VE CREATED A MECHANISM THAT IS COUNTERINTUITIVE. THAT WE'VE INCENTIVIZED YOU -- AND YOU'RE DOING REALLY WELL. I'VE GOT NO ISSUES. BUT SOMEHOW THAT INCENTIVE HAS PROVIDED LESS OPPORTUNITY TO PUT HEADS IN BEDS. I DON'T KNOW THAT THAT'S RIGHT BECAUSE YOU TALK ABOUT HOW GOOD YOU'VE DONE WITH -- WELL, YOU GET HOT FUNDS SO THE MORE HEADS IN BEDS, THE -- >> THE BETTER OFF WE ARE. >> Scott: I'M CONCERNED ABOUT A COUPLE OF THINGS. ONE, MAYBE, YOU KNOW, WE'RE NOT GETTING AS MANY CONVENTIONS AS WE COULD. I WANT TO MAKE SURE THAT WE -- I, AS A COUNCIL MEMBER, HAVEN'T CREATED A MECHANISM WHERE YOU'RE LIKE, HEY, MAN, YEAH, BUT I'M NOT GOING TO DO THAT. I'M GOING TO HAVE A DIFFERENT EVENT, A LOCAL EVENT. SO, NO, YOU CAN'T HAVE THIS CONVENTION. I DON'T KNOW WHAT I'M REALLY TALKING ABOUT EXCEPT I THINK THERE'S SOMETHING THERE. BECAUSE MY DEFAULT IS I WOULD HOPE THAT EVERY WEEKEND IN THE SUMMERTIME THERE'S AN INDOOR SOCCER TOURNAMENT IN THE EXHIBIT SPACE SO THAT WE OUGHT TO BE TRYING TO USE -- WE OUGHT TO BE THE REGIONAL SPORTS CENTER OF SOUTH TEXAS. AND THERE'S SOMETIMES A YEAR THAT CONVENTION SPACE COULD BE REALLY BENEFICIAL TO US. I DON'T KNOW HOW IT WOULD HAPPEN. SO IF YOU GUYS ARE HAVING A CONVERSATION, YOU THINK WE NEED TO TWEAK THE AGREEMENT, IF WE CAN, THAT'S BENEFICIAL FOR EVERYBODY, IN GENERAL, AND PUTS MORE HEADS IN BEDS AND HAS AN HAS AN OPPORTUNITY FOR SPORTS. I WOULD BE INTERESTED IN THAT. >> YEAH, FROM A BOOKING PERSPECTIVE, IT'S A DELICATE BALANCE. FOR US, JUST FROM AN ARENA PERSPECTIVE, WE HAVE FOUR TENANTS THAT WE HAVE IN THE FACILITY. WHICH IS UNHEARD OF IN MOST SPACES BECAUSE OF THE AMOUNT OF DATES. SO IF WE'RE HOLDING 40 HOCKEY DATES AND 20 BASKETBALL DATES, EVERYBODY WANTS A WEEKEND. AND THEN YOU'VE GOT FOOTBALL. YOU'VE GOT BUC DAYS AND GRADUATIONS THAT BASICALLY TAKES THE ENTIRE MONTH OF MAY OUT. JUST THE ARENA SIDE OF IT, WE'RE RUNNING LOW ON DATES TO BE ABLE TO GET THINGS IN THERE. AND WE ARE DOING -- I THINK WE'RE DOING A REALLY GOOD JOB OF FITTING THINGS IN WHERE WE NEED THEM, WHETHER IT'S A THURSDAY. WE DID THE JELLY ROLL SHOW ON A MONDAY AND KIND OF TO YOUR POINT, WE HAD A GROUP OF -- I THINK 5,000 TEXAS THESPIANS THAT WERE IN THE FACILITY THAT MORNING AND WE HAD THE JELLY ROLL SHOW THAT NIGHT TO WHERE WE HAD TO RENT TRAILERS FOR PRODUCTION OFFICES. WE'RE GETTING CREATIVE. WE'RE DEFINITELY NOT SHYING AWAY FROM THE HEADS IN BEDS AND WHAT THE IDEA OF WHAT THAT LOOKS LIKE FROM THE HOTEL PERSPECTIVE. WE KNOW THAT BUSINESS IS GOING TO BE HUGE FOR US. OUR SITUATION RIGHT NOW IS THANKFULLY WE GOT THE PROJECT FINANCING ZONE APPROVED SO WE CAN START LOOKING AT SOME POTENTIAL AVENUES TO GAIN SOME SPACE, IF WE CAN. BECAUSE I THINK AT THIS POINT OUR ISSUE IS MORE THE SIZE OF THE SPACE, NOT THE DATES THAT WE HAVE. OUR EXHIBIT HALL IS NOT BIG ENOUGH FOR NATIONAL TYPE OF EVENTS WHEN IT COMES TO THE EXHIBIT HALL SPACE. SO TRYING TO GET CREATIVE WHAT THAT LOOKS LIKE. AGAIN, WE WORK VERY CLOSELY WITH VCC. I'M ON THE BOARD. I'M ON THE SPORTS COUNCIL. SO WE ARE DEFINITELY HAVING THOSE CONVERSATIONS ON CREATIVE WAYS THAT WE CAN DO THAT. THE ONLY THING THAT WE TELL THEM PRETTY REGULARLY IS WHEN IT COMES TO THE ARENA SPACE, WE WANT TO TRY TO NOT UTILIZE THAT YEARS IN ADVANCE BECAUSE WE DON'T WANT TO TAKE MORE DATES OUT OF THE CALENDAR. OBVIOUSLY WE LOVE THE ICE RAYS, THE ISLANDERS, NO EVENT IS BRINGING US 40 EVENTS A YEAR. THOSE ARE GREAT FOR US AND WE LOOK FORWARD TO LONG PARTNERSHIPS WITH THEM IN THE FACILITY, BUT IT'S DEFINITELY CALENDAR GYMNASTICS TO TRY TO FIT IT ALL IN. >> Scott: I'M SURE IT'S THE SAME THOUGHTS ON LOCAL VENDORS. BUT I WANT TO CLOSE WITH INTERESTED IN BECOMING THE MECCA OF SPORTING EVENTS AND THINK THERE'S OPPORTUNITIES FOR YOU TO HELP US GET THERE. >> ABSOLUTELY. >> Mayor Guajardo: THANK YOU. COUNCILMAN CANTU. >> Cantu: I GOT SOME CONCERNS, HEATHER. CAN YOU COME UP, PLEASE? HOW LONG IS OVG 360'S CONTRACT? >> FIVE YEARS WITH THE OPTION TO RENEW. >> Cantu: THEIR RENEWAL IS COMING UP, CORRECT? >> WE'RE IN YEAR THREE, I BELIEVE. >> Cantu: SO WE HAVE TWO MORE YEARS. MY CONCERN IS WHY IS OVG 360 SIGNING CONTRACTS WITH TICKETMASTER FOR A NINE-YEAR AGREEMENT KNOWING THAT THEY ONLY HAVE A CONTRACT WITH US FOR FIVE YEARS? WHY ARE THEY PUTTING THE CITY IN THE POSITION OF A NINE-YEAR AGREEMENT WITH TICKETMASTER KNOWING THAT THERE'S OTHER TICKET PEOPLE OUT THERE THAT HAS REASONABLE PRICES. HE TOLD ME THE CONTRACT ENDS IN THREE YEARS. I'M LOOKING AT A CONTRACT THEY SIGNED THAT'S ENDING UNTIL JUNE 30, 2032. >> OKAY. >> Cantu: PLEASE FIGURE THAT OUT. I WANT AN ANSWER ON THAT. I WOULD LIKE TO REQUEST AN AUDIT ON THE AMERICAN BANK CENTER. I JUST DON'T UNDERSTAND WHEN THEY SAY ONE THING AND I FIND OUT THERE'S A CONTRACT OUT THERE THAT'S NINE YEARS. I MEAN, WHAT OTHER CONTRACTS ARE THEY DOING WITH THAT LONG OF AN AGREEMENT KNOWING THAT THEY HAVE A FIVE-YEAR CONTRACT WITH THE CITY OF CORPUS CHRISTI? AND THIS CONTRACT CLEARLY STATES THAT THEY'RE AN AGENT FOR THE CITY OF CORPUS CHRISTI. >> YES. >> Cantu: WE'RE ON THE HOOK FOR THIS. THIS IS OUR DEAL. >> SURE. AND THAT IS PART OF THE MANAGEMENT CONTRACT IS THAT OVG IS OUR AGENT AND ACTS ON OUR BEHALF FOR THOSE THINGS THAT ARE WITHIN THE CONVENTION CENTER COMPLEX. AND SO PROMOTIONAL, VENDORS -- >> Cantu: I GET IT BUT WHY ARE THEY DOING A NINE-YEAR CONTRACT? MAKES NO SENSE. THEY LOCK US INTO THIS AGREEMENT AND WE CAN'T DO NOTHING ABOUT IT. IS THERE SOMETHING WE CAN DO ABOUT IT, MILES? >> Risley: I WOULD HAVE TO LOOK AT THE NATURE OF THE CONTRACT MANY MORE DETAIL TO BE ABLE TO RESPOND TO THAT. >> Cantu: I MEAN, I JUST DON'T UNDERSTAND WHY THEY'RE GOING TO LOCK US INTO A NINE-YEAR CONTRACT. AND I'M SURE THERE'S SOME TYPE OF SIGN-IN BONUSES FOR OVG 360 TO SIGN A NINE-YEAR CONTRACT WITH TICKETMASTER. I DEALT WITH A TICKET PLACE BEFORE AND THAT'S WHAT THEY DO. THEY GIVE YOU DIFFERENT CATEGORIES OF, YOU KNOW, YOU DO THIS MANY TICKETS, WE'LL GIVE YOU THIS MUCH BACK, YADDA, YADDA YADDA. I WOULD LIKE TO DO A FULL AUDIT WITH THE AMERICAN BANK CENTER. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. WELL, THE ONLY COMMENT THAT I REALLY ACTUALLY WANTED TO MAKE IS THIS IS MY THIRD YEAR HERE AND ONE OF THE ISSUES WITH OVG AND REALLY, I GUESS LIVING HERE ALL MY LIFE, HAS BEEN THE FINANCIALS FOR THE COMPANY THAT HAS BEEN RUNNING THE AMERICAN BANK CENTER. AND AS FAR AS I KNOW, THAT I REMEMBER -- DID WE FINISH THE CLOSEOUT WITH THE PREVIOUS COMPANY? WERE THOSE AUDIT BOOKS CORRECTED AND FINALLY, YOU KNOW, HASHED OUT? >> WE'RE STILL WORKING THROUGH THAT BUT, YES. WE HAVE BEEN WORKING ON IT FOR SEVERAL MONTHS. I HAVEN'T GOTTEN AN UPDATE RECENTLY SO I'LL LET YOU KNOW WHERE THAT IS. >> Campos: OKAY. AGAIN, THIS IS VERY ENLIGHTENING. I HAD NO IDEA THAT OVG -- AND I GUESS, YOU KNOW, BECAUSE YOU ARE NEGOTIATING FOR THE CITY, THAT YOU WOULD NEGOTIATE A CONTRACT, I GUESS, FOR NINE YEARS, LONGER THAN WHAT YOUR CONTRACT IS RIGHT NOW. SO, HOW OFTEN -- IS IT SOMETHING WE REQUEST? HOW OFTEN ARE YOU REQUIRED TO COME -- BECAUSE THAT'S WHAT HAPPENED WITH THE PREVIOUS COMPANY IS THAT WE WEREN'T GETTING FINANCIALS AND WE ENDED UP LOSING A WHOLE LOT OF MONEY. I DON'T KNOW HOW MUCH BUT I KNOW WE WERE ALWAYS IN THE HOLE. BUT THANK GOODNESS RIGHT NOW THAT WE'RE DOING BETTER WITH YOUR CORPORATION, WITH YOUR COMPANY. HOW OFTEN WILL YOU BE COMING ON A REGULAR BASIS TO INFORM US? IS THAT SOMETHING THAT WE JUST REQUEST TO STAFF TO BRIEF US ON ON THE FINANCIALS? >> SURE. WHAT WE'RE GOING TO DO IS WE'LL DO QUARTERLY REPORTS. >> Campos: OKAY. >> NOT NECESSARILY IN PERSON. I KNOW WE'VE GOT A LOT ON OUR AGENDAS BUT PROVIDE QUARTERLY REPORTS, QUARTERLY SUMMARIES SIMILAR TO THIS ONE, TO CITY COUNCIL ON A QUARTERLY BASIS. IT REALLY IS UP TO COUNCIL ON HOW OFTEN YOU WANT TO HEAR FROM OVG. LIKE I SAID, WE HAVE A LOT ON OUR AGENDAS AND SOMETIMES IT'S HARD TO GET MORE THAN ONE OR TWO BRIEFINGS ON A MEETING BUT WE CAN BRING IT AS OFTEN OR AS FEW AS YOU WANT. >> Campos: I WANT TO MAKE SURE WE REMEMBER THAT BECAUSE WE SAID THE SAME THING ABOUT THE PORT, THAT THEY SHOULD BE COMING IN HERE QUARTERLY WHAT'S GOING ON WITH THE PORT AND WE HAVE YET TO HEAR ABOUT THE PORT. WE'RE HERE IN AUGUST SO IT WOULD BE SEPTEMBER, OCTOBER, NOVEMBER, DECEMBER. ALL RIGHT. EXPECTED IN DECEMBER. THANKS. >> AND, COUNCILWOMAN, I WANT TO APOLOGIZE. I THOUGHT THE TICKETMASTER DEAL WITH A FIVE AND FIVE. THERE'S A LOT OF CONTRACTS SO I MISSPOKE ON THAT ONE. I WASN'T INTENTIONALLY TRYING TO MISLEAD YOU. THERE'S PROBABLY 50 CONTRACTS THAT WE HAVE AND KNOWING WHAT EACH ONE OF THOSE TERMS ARE OFF THE TOP OF MY HEAD, MY APOLOGIES FOR THAT. >> Mayor Guajardo: OKAY. >> [OFF MIC] >> Mayor Guajardo: HOLD ON JUST A SECOND. LET ME FINISH THIS. I'M ASKING REBECCA FOR SOME INFORMATION. >> City Secretary: THIS IS A PRESENTATION ITEM SO THERE'S NO ACTION ON PRESENTATION ITEMS AT THIS TIME. THAT WOULD HAVE TO BE SOMETHING THAT WOULD COME BACK TO COUNCIL. WE'D HAVE TO SCHEDULE IT FOR ANOTHER ONE. >> Mayor Guajardo: NOT UNDER THE BRIEFING BUT WE CAN TALK ABOUT IT LATER. >> City Secretary: YES, MA'AM. >> Mayor Guajardo: THANK YOU. OKAY. THANK YOU. I THINK WE HAVE -- WE'VE GOT EVERYBODY ALL QUESTIONS ANSWERED. I'LL MAKE A QUICK COMMENT. I'M A BIG BELIEVER IN SURVEYS. YOU MENTIONED 82.5%. >> THAT WAS OUR PERFORMANCE MEASURE. >> Mayor Guajardo: AND 86.6%. HOW OFTEN DO Y'ALL PUT THEM OUT? >> WE PUT THEM OUT AFTER EVERY EVENT. >> Mayor Guajardo: I'M INTERESTED -- CCISD JUST HAD THE CONVOCATION THERE. HOW MANY PEOPLE WERE THERE FOR THE TEACHERS? >> A TON. WELL DIDN'T DO TICKETS SO WE'RE ESTIMATING. I WANT TO SAY IT WAS PROBABLY 7,000? >> Mayor Guajardo: 5,000? >> 5,000 GIVE OR TAKE. >> M >> Mayor Guajardo: HOW DID THEY RECEIVE THOSE SURVEYS? >> ANYTHING FROM A CONVENTION CENTER SIDE, THAT'S WHERE THEY WOULD GO. ANYTHING WITH A TICKET SIDE WE SEND A GOOGLE DOC . >> Mayor Guajardo: BUT WHO IS THE TICKETHOLDER? >> THAT WOULD GO TO THE ACTUAL ORGANIZERS OF THE EVENT. >> Mayor Guajardo: SO NOT ALL THE TEACHERS. >> NO. WE CAN'T GET ALL THAT INFORMATION FROM ALL THE DIFFERENT GROUPS. >> Mayor Guajardo: I'M JUST A BIG BELIEVER IN SURVEYS AND I THINK PEOPLE FEEL VERY COMFORTABLE BECAUSE THEY CAN ANSWER TRULY AND JUST SEND IT OFF. >> WE HAVE HAD DISCUSSIONS ON SEVERAL WAYS WE CAN TRY AND DO THAT. WHETHER IT BE A SYSTEM WHERE WE PUT QR CODES UP AROUND THE FACILITY. >> Mayor Guajardo: THAT WOULD BE GOOD. >> WE'VE DISCUSSED SOME OF THOSE OPTIONS TO TRY TO GET MORE OF THE PATRONS ON THE CONVENTION CENTER SIDE. BUT YES. >> Mayor Guajardo: I THINK THAT'S VERY IMPORTANT, DANIEL, I REALLY DO. AND I THINK YOU'RE GOING TO GET A WHOLE LOT MORE INPUT OF THE ACTUAL PEOPLE THAT ARE EXPERIENCING THE EVENT. I WOULD STRONGLY ENCOURAGE YOU TO DO THAT. AND THEN YOU MENTIONED THE ARENA MARKETPLACE. THAT'S SOMETHING BRAND NEW AND THAT HAS BROUGHT IN AN ADDITIONAL $200,000? >> YEAH. $200,000 IN A SPACE THAT WAS BASICALLY EMPTY BEFORE OUR HOSPITALITY STAFF REALIZED IT WAS DEAD SPACE ON OUR CONCOURSE. THEY CREATED A WALK-THROUGH AREA FOR IT AND IT'S BEEN GOING FANTASTIC. >> Mayor Guajardo: OKAY. AND, AGAIN, MY BIG CONCERN -- IT'S A CONCERN BUT I THINK IT'S AN ONGOING CONCERN BECAUSE IT CAN ALWAYS IMPROVE -- IS THE EXPERIENCE. AND HEARING FROM PEOPLE WHO ACTUALLY USE THE FACILITY AND WHAT THEIR ACTUAL EXPERIENCE IS. BECAUSE WE'VE ALL BEEN TO CONFERENCES AND WHAT HAVE YOU AND I LOVE WHEN A SURVEY COMES IN. IT'S A WAY TO SHOW YOU THIS IS WHAT WE NEED TO IMPROVE AND HERE'S WHY. >> YEAH. >> Mayor Guajardo: I THINK THAT'S ALSO VERY HEALTHY FOR YOUR OWN EMPLOYEES. HOW MANY EMPLOYEES DO YOU HAVE? >> 30 ON THE MANAGEMENT SIDE AND 12 OR 15 ON THE HOSPITALITY. >> Mayor Guajardo: MAYBE 45-ISH? YEAH. I DON'T KNOW THAT YOU HAVE A MECHANISM WHERE THEY CAN SAY, HEY, WE'RE HAPPY WITH THIS OR WE'RE NOT HAPPY WITH THAT. JUST THEIR INPUT, OR DO YOU HAVE ANYTHING? >> YEAH, WE SHARE ALL THOSE SURVEYS WHEN THEY COME THROUGH WITH OUR DEPARTMENT HEADS. >> Mayor Guajardo: NO, I'M TALKING ABOUT YOUR DIRECT EMPLOYEES. >> YEAH. WE SHARE THAT -- OH, YOU'RE TALKING ABOUT -- >> Mayor Guajardo: I'M TALKING ABOUT TO SAY I'M HAPPY. I LOVE IT HERE, HERE'S WHY. OR I'M NOT. THAT'S WHAT I THINK IS JUST AS IMPORTANT AS THE EXPERIENCE FROM AN OUTSIDER. >> YEAH. OUR CORPORATE HR HAS GOT A PROGRAM IN PLACE WHERE IT'S MORE OF YOUR ANNUAL REVIEWS BUT IT GIVES YOU THE OPPORTUNITY FOR QUARTERLY FOLLOW-UPS TO KIND OF GIVE THEM THAT AVENUE. BUT, YES, WE WILL DEFINITELY LOOK INTO THAT FROM AN EMPLOYEE PERSPECTIVE. >> Mayor Guajardo: THANK YOU. WE APPRECIATE THE PRESENTATION AND ALL THE WORK THAT GOES BEHIND THAT. SO WE'VE SEEN SOME VERY GOOD IMPROVEMENTS BASED ON YOUR PRESENTATION IN TERMS OF HOW THE CONVENTION CENTER OPERATES. AND SO, AGAIN, THE EXPERIENCE IS MOST IMPORTANT. WE APPRECIATE THE TEAM BEING HERE. THANK YOU. SO NOW WE ARE GOING TO GO AHEAD AND BREAK FOR LUNCH. IT'S 2:20. KIND OF LATE. BUT THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEM 16 THROUGH 19 PER TEXAS GOVERNMENT CODE SECTION 551.071, 551.072, AND 551.087. WE WILL RETURN. [EXECUTIVE SESSION] [EXECUTIVE SESSION] >> Mayor Guajardo: OKAY. WE'RE GOING TO RECONVENE OUR MEETING. COUNCILMAN HERNANDEZ IS GOING TO MAKE A MOTION. >> Hernandez: YES, MAYOR I'D LIKE TO MAKE A MOTION TO DEACT CITY STAFF TO PREPARE AN AGREEMENT FOR IF PURCHASE OF WATER RIGHTS APPROXIMATELY 2,207,788 ACRES, LOCATIONS ADJACENT TO U.S. HIGHWAY 181 AND U.S. HIGHWAY 77/IVMENTD-69 IN THE AMOUNT OF UP TO $7,437 PER ACRE SUBJECT TO CITY APPROVAL OF CITY AGREEMENT, APPROPRIATION OF FUNDS AND APPRAISAL OF THE PROPERTY. >> SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND WE HAVE A SECOND. COUNCILMAN BARRERA. >> Barrera: HOW IS THIS GOING TO BE FUNDED? >> Zanoni: IT WOULD -- THE WATER RIGHT PURCHASE WOULD BE REVENUE BONDS AND INFRASTRUCTURE WOULD BE REVENUE BONDS OVER A 30-YEAR PERIOD, OUR RATEPAYERS -- WATER WRAIT PAYERS WOULD PAY FOR THIS. >> Barrera: WHERE'S -- THE FINANCE -- >> Zanoni: IN ADDITION, WE'LL BE LOOKING FOR STATE AND FEDERAL GRANTS AS WELL. >> Barrera: OKAY. WELL, WE SAY THAT ON EVERYTHING. >> Zanoni: RIGHT. >> Barrera: SO -- SO -- AND I'VE BEEN A PROPONENT OF JUST BUYING THE WATER AND BANKING IT, SO 169 MILLION, CURRENT INTEREST RATE RIGHT NOW WOULD BE. >> Zanoni: WELL, THE LAST REVENUE DEBT ISSUANCE WAS ABOUT 4.6 FOR US FOR THE CITY OF CORPUS CHRISTI, THE SWIFT LOANS OR 4.3%. >> Barrera: SO 30 YEARS IN DEBT FOR 169 MILLION JUST IF WE BANKED IT, WHICH WE HAVE THE RIGHT TO DO. I'M NOT SAYING I DISAGREE WITH IT, I JUST WANT TO MAKE SURE WE'RE ISSUING DENT FOR THIS. >> Zanoni: WE'RE ISSUING DEBT FOR THE WATER RIGHT PURCHASE. >> Barrera: OKAY. ALL RIGHT. THANK YOU. COUNCILMA N SCOTT. >> Scott: AND THIS IS AN UP TO NUMBER RIGHT? AND THERE'S -- I WAS ONLY HALF LISTENING, I'M SORRY. THERE'S AN APPRAISAL LANGUAGE? >> YES. >> Scott: THANK YOU, MAYOR. I JUST WANT TO MAKE SURE THE PUBLIC UNDERSTANDS THIS IS GO BRING US BACK SOMETHING UP TO AND LET'S GET A THIRD PARTY TO PROVIDE SOME CONSULTATION ON VALUE. THANK YOU, MA'AM. >> Mayor Guajardo: OKAY. PETER, AND WE'RE GOING TO -- THIS IS GOING TO COME BACK, YOU SAID, ROUGHLY, IN A WEEK OR TWO. >> Zanoni: RIGHT, COUNCILMAN HERNANDEZ WAS TO DIRECT STAFF TO COME BACK, RIGHT? SO THE MOTION ON THE FLOOR IS TO DIRECT STAFF THROUGH THE CITY MANAGER TO BRING A TERM SHEET, IF YOU WILL, FOR THIS WATER SOURCE PROJECT TO INCLUDE PURCHASING THE WHOLE 24 MILLION-GALLON WATER RIGHTS AND THEN TALKING ABOUT SOME OF THE DELIVERABLES THAT WE'VE TALKED TO EVANGELINE ABOUT TO INCLUDE CLEAR TITLE TO THE LAND, TRANSFER PERMITS, DRILLING PERMITS AND SO ON. AND SO THERE WOULD BE GUIDANCE FROM THE COUNCIL ON THE BIG PARAMETERS, THAT'S WHAT WE'D BRING TO COUNCIL THAT ULTIMATELY WOULD BE -- COULD BE APPROVED BY SPHI COUNCIL. IT WOULD ALSO DIRECT THE CITY MANAGER TO FINALIZE THE LEGAL DOCUMENTS BUT STAYING WITHIN THOSE CONSTRUCTS OF THE, YOU KNOW, EIGHT TO 10 KEY POINTS THAT THE COUNCIL'S ALL IN AGREEMENT ON. >> Mayor Guajardo: OKAY. AND AS WAS GIVEN TO US HERE -- [LAPSE IN AUDIO] -- THE RATE IMPACT FOR THE AVERAGE 6,000-GALLON USER FOR 24 MGD THAT INCLUDED REVERSE OSMOSIS FOR THE FIRST 12 MGD, WE WOULD BE LOOKING AT AN INCREASED COST OF $9.50; IS THAT CORRECT. >> Zanoni: THAT'S OUR ADDITIONAL ASSESSMENT, YES, MA'AM. >> Mayor Guajardo: OKAY. AND THEN, OF COURSE, WE HAVE SOME OPTIONS HERE. NO REVERSE OSMOSIS FOR 12 MGD, RATE INCREASE WOULD BE $4.38 AND THEN WE HAVE THE 24 MGD WITH REVERSE OSMOSIS FOR 12 MGD AND A SECONDARY LINE UPSIZE, AN INCREASE OF $10.27. >> Zanoni: WE'RE GOING TO BREAK THAT THIRD ONE OUT SO THAT IT BECOMES A SEPARATE CAPITAL PROJECT. >> Mayor Guajardo: OKAY. >> Zanoni: YEAH, SO IT WOULD BE 77-CENTS IF WE WANTED THE REDUNDANT MARY RHODES PIPELINE MAIRNLINGS I JUST WANT TO -- >> Mayor Guajardo: I WANT TO MAKE SURE WE'RE BEING TRANSPARENT ON WHAT WE'RE VOTING ON RIGHT NOW, WHICH, AGAIN, AS WAS MENTIONED, THIS IS TO GIVE YOU DIRECTION TO GO AND NEGOTIATE AND COME BACK AND BRING A CONTRACT WITH MORE OF THE SPECIFICS, BUT THIS IS WHAT WE'RE TALKING ABOUT TODAY. >> Zanoni: RIGHT, YEAH. >> Mayor Guajardo: VERY GOOD. COUNCILWOMAN >> Paxson: THANK YOU, MAYOR. PETER, SO THE NUMBERS THAT WE JUST HEARD FROM THE MAYOR ON OUR INITIAL PROJECTED IMPACT FOR THIS PURCHASE, THOSE ARE ALSO ELIGIBLE IF WE WERE TO APPLY FOR SWIFT LOANS, GRANTS, AND OTHER COST OFF-SETTING MECHANISMS? >> Zanoni: THAT'S CORRECT, COUNCILWOMAN. WE KNOW EVANGELINE IS IN THE REGION PLAN SO IT QUALIFIES FOR STATE FUNDING. >> Paxson: THIS IS JUST THE INITIAL BEFORE ANYTHING'S BEEN ADDED? >> Zanoni: CORRECT. >> Paxson: THANK YOU FOR CLARIFICATION. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: THE IMPORTANT THING IS WE'RE TRYING TO FIND WATER BEFORE NEXT YEAR AND THERE ARE SOME FEDERAL FUNDS TOO, MR. ZANONI, I'LL GIVE YOU THAT INFORMATION AFTER THAT WE CAN ALSO LOOK AT. SO THERE ARE DIFFERENT PLACES WE CAN LOOK AT POTS OF MONEY. THANK YOU. >> Mayor Guajardo: COUNCILMEMBER CANTU. >> Cantu: I WANT TO TELL THE PUBLIC WE'RE LOOKING FOR WATER AND DON'T BELIEVE THE SCARE TACTICS BECAUSE WE'RE GETTING WATER AND WE'LL GET WATER HOPEFULLY BY NEXT DECEMBER. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: YOU'RE ALSO GOING TO GIVE US TIMELINE, BEST-CASE SCENARIO, WORST-CASE SCENARIO, I MEANT TO ASK THAT. >> Zanoni: WE NEED A TIMELINE FOR CONSTRUCTION. THE FIRST 12 MGD, WE KNOW THE PLAN IS TO PUT IT INTO THE MARY RHODES BUT DRILLING, DISTRIBUTION, STORAGE AND GETTING IT TO THE MARY RHODES. WE'LL GET YOU THAT TIMELINE WHEN WE BRING BACK THOSE CONTRACTS. >> Scott: THANK YOU, SIR. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. AND ALSO JUST TO BE CLEAR, THIS IS JUST THE BEGINNING. AGAIN, WE WANT TO BE AS TRANSPARENT AS POSSIBLE. THIS WOULD ACTUALLY BE OWNED AND OPERATED BY THE CITY IF THIS WERE TO GO THROUGH WITH, YOU KNOW, I THINK RIGHT NOW WE HAVE EIGHT ITEMS THAT EVANGELINE STILL NEEDS TO MEET. SO, AGAIN, WE ARE TRYING TO BE AS TRANSPARENT AS POSSIBLE. SOME NUMBERS HAVE BEEN THROWN OUT HERE BUT IT IS VERY, YOU KNOW, IT'S JUST AT THE BEGINNING AND WE'RE JUST TRYING TO BE -- TO LET THE PUBLIC KNOW AGAIN, AS WE'VE ALL BEEN SAYING, IS THAT WE ARE LOOKING FOR OTHER WAYS OF TRYING TO GET OUR WATER, YOU KNOW, TO OUR COMMUNITY. SO THIS IS ONE OF THOSE PLANS THAT WE HAVE AND THAT WE, YOU KNOW, WE SHOULD BE MOVING FULLY. SO I TOTALLY SUPPORT THIS AND I HOPE THAT EVANGELINE IS ABLE TO COME THROUGH. BECAUSE WE DO WANT TO WORK TOGETHER ON THIS. BEST OF LUCK. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: I WANTED TO ECHO THE FACT THAT NUMBER ONE, WHEN WE FIRST STARTED WORKING -- I DON'T KNOW HOW LONG AGO -- THAT WE HAVE BEEN WORKING WITH EVANGELINE. WE WERE ORIGINALLY TALKING ABOUT THE POSSIBILITY OF LEASING. NOW THAT WE HAVE THE ABILITY TO ACTUALLY OWN THE ASSET, I THINK THAT'S A BIG PLUS FOR US AND I THINK THAT, YOU KNOW, IT'S SOMETHING THAT, AGAIN, WE'VE PROMISED EVERYBODY THAT WE'RE GOING TO LOOK AT EVERY POSSIBLE WATER SOURCE THAT WE CAN AND I BELIEVE THAT THIS IS SOMETHING THAT WE CAN ACHIEVE IN A VERY SHORT PERIOD OF TIME. I'M EXCITED ABOUT LOOKING AT IT AND GOING FORWARD. WE HAVE TO CONTINUE TO LOOK AT EVERYTHING. IT GIVES US AN ADDITIONAL SOURCE WHERE WE DON'T HAVE TO DEPEND ON SURFACE WATER. ANY TIME WE'RE GETTING AWAY FROM SURFACE WATER, IT'S A GOOD DAY. >> Mayor Guajardo: EVERYONE, PLEASE SUBMIT YOUR VOTE. >> City Secretary: MAYOR, PUBLIC COMMENT. >> Mayor Guajardo: YES, YES, YES. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE COMMENT ON THIS ITEM? >> [OFF MIC] IT IS A VERY -- THE TEXAS WATER DEVELOPMENT BOARD PREDICTS THAT THERE'S APPROXIMATELY 51 MILLION-ACRE FEET OF WATER UNDERNEATH SAN PATRICIO COUNTY AND IT COMES OUT OF THE GROUNDING MEETING FEDERAL AND STATE GUIDELINES FOR DRINKING WATER. SO IN THE EVENT, YOU KNOW, COMPARING THIS TO SOME OTHER OPTIONS THAT ARE ON THE TABLE RIGHT NOW, I THINK THIS WOULD BE A VIABLE ASSET FOR MANY, MANY YEARS TO COME. AND IT'S NOT AN APPLIANCE LIKE A DESAL PLANT IS THAT AFTER 30 YEARS IS RUSTY AND DOESN'T WORK. SO FULLY SUPPORT THIS. APPRECIATE Y'ALL LOOKING INTO THIS AND HOPE IT WORKS OUT. >> Mayor Guajardo: ANYONE ELSE PUBLIC COMMENT ON ITEM 19? >> FIRST OF ALL, THANK YOU. WE NEED TO LOOK AT ALL SOURCES OF WATER AND IT IS GREATLY APPRECIATED THAT YOU'RE LOOKING FOR THE SHORT-TERM. AND I ALSO ASK YOU NOT TO FORGET THE LONG-TERM. WE NEED TO LOOK AT BOTH THINGS SO THAT WE CAN HAVE WATER AVAILABLE. TO ME, IT DOESN'T MATTER WHERE YOU GET IT OR HOW YOU GET IT, JUST GET IT. >> Mayor Guajardo: THANK YOU, MS. SALDANA. ANYONE ELSE? >> RACHEL CABALLERO, 522 HAN KOCH. OH, DISTRICT 1. I WOULD THANK THE FAB FIVE FOR BRINGING THESE ALTERNATIVE WATER SOURCES TO THE COMMUNITY THAT ARE LESS EXPENSIVE AND WILL BE DONE FASTER THAN ANYTHING ELSE THAT HAS BEEN PRESENTED TO US. AT THE END OF THE DAY, WE ARE A REASONABLE COMMUNITY. WE BELIEVE IN FISCAL RESPONSIBILITY AND WE WANT WHAT IS SAFEST FOR OUR ENVIRONMENTS. SO I APPLAUD YOU, COUNCILWOMAN VAUGHN, COUNCILMAN HERNANDEZ, COUNCILWOMAN CAMPOS, COUNCILWOMAN PAXSON, AND COUNCILMAN CANTU. THANK YOU. >> Mayor Guajardo: ANYONE ELSE? OKAY. WE'LL CLOSE PUBLIC COMMENT. COUNCILMAN BARRERA. >> Barrera: I JUST HAVE ONE MORE QUESTION. SO SINCE THIS IS NOT -- THE MONEY FROM THE SURCHARGE CANNOT BE USED FOR THIS EITHER, RIGHT? >> Zanoni: FROM THE INDUSTRIAL USERS? >> Barrera: YEAH. >> Zanoni: DO YOU KNOW, DREW? I THINK WE CAN FOR SOME OF THE INFRASTRUCTURE. >> Molly: WE'LL HAVE TO LOOK INTO THAT BUT I DO BELIEVE IT WOULD QUALIFY FOR THE DROUGHT SURCHARGE EXEMPTION FUND BECAUSE IT IS A DROUGHT-RESISTANT WATER SUPPLY, IT'S NOT DROUGHT PROOF -- >> [OFF MIC] >> Molly: THAT'S A GOOD POINT. THE WATER RIGHTS ITSELF, WE DON'T BELIEVE THAT WOULD QUALIFY. BUT THE INFRASTRUCTURE THAT WOULD BE ASSOCIATED WITH BUILDING THE CAPITAL INVESTMENT TO BRING THAT TO THE CITY. THAT WOULD INCLUDE PUMP, PIPELINES, AND WELLS. WE BELIEVE THAT WOULD BE ELIGIBLE FOR THE EXEMPTION SURCHARGE. >> Barrera: THIS COULD BE FUNDED BY OUTSIDE CITY LIMITS? >> Molly: YEAH. >> Barrera: APPRECIATE IT. >> Mayor Guajardo: EVERYONE, IF YOU'LL PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. OUR NEXT ITEM -- WE'RE GOING TO GO BACK TO SECTION M. WE'LL FINISH THIS ITEM AND GO BACK TO EXECUTIVE SESSION FOR THE LAST TWO. THIS IS AN UPDATE ON ALTERNATIVE WATER SUPPLY PROJECTS TO INCLUDE BRIEFING BY JOHN BYRUM, EXECUTIVE DIRECTOR OF THE NUECES RIVER AUTHORITY. >> I APPRECIATE THE OPPORTUNITY TO COME AND EXPLAIN TO YOU ABOUT OUR PROJECT. NEW WATER FOR SOUTH TEXAS. CAN YOU HEAR ME? MY VOICE IS GIVING OUT SO Y'ALL HAVE TO BEAR WITH ME. I'M NEVER AT A LOSS FOR WORDS BUT TODAY MY VOICE IS BOTHERING ME A LITTLE BIT. CAN YOU BRING MY -- >> Zanoni: AV, BRING UP THE POWERPOINT PRESENTATION FROM NUECES RIVER AUTHORITY. IS THAT IT? >> IT'S HERE. IT'S JUST NOT THERE. >> Zanoni: THEY'RE GOING TO BRING IT UP HERE. >> THERE WE GO. ALL RIGHT. LET ME TELL YOU A LITTLE BIT ABOUT THE NUECES RIVER AUTHORITY. I GET THIS QUESTION ALL THE TIME. WHAT DO YOU GUYS DO? WE WERE CREATED IN 1935 BY THE STATE LEGISLATURE AND WE FUNCTION PRIMARILY AS WATER, WATER RESOURCE PLANNING GROUP, AND AN AGENCY TO PROTECT YOUR RESOURCES AND THE PEOPLE'S RESOURCES WITHIN A 17,500 SQUARE MILE AREA OF THE NUECES BASIN. I WORK FOR AN APPOINTED GROUP OF 21 BOARD MEMBERS, SOME OF WHICH ARE HERE TODAY. LET ME INTRODUCE THEM. OUR BOARD PRESIDENT, ERIC BURNETT IS HERE. CHAIRMAN OF OPERATIONS COMMITTEE, TONY WOOD IS HERE. TRAVIS, OUR CHIEF OPERATING OFFICER IS HERE. AND THEN WE'VE GOT A CONSULTANT IN THE BACK, CONTRACTED CONSULTANT, DEBBIE LINDSAY OPAL WHO DOES OUR COMMUNICATIONS FOR US. WE'RE GLAD TO BE HERE WITH THIS TEAM. WE HAVE A TEAM OF GOOD FOLKS WITH US TODAY. 21 BOARD OF DIRECTORS. I WORK FOR THEM. WE MEET ON AT LEAST A QUARTERLY BASIS AND DECIDE THE BEST DIRECTION FOR THE RIVER AUTHORITY. OUR ENABLING LEGISLATION SAYS WE EXIST TO PRESERVE, PROTECT, AND DEVELOP SURFACE WATER SOURCES. BUT IF IT SAYS "FLOOD," FLOOD CONTROL IRRIGATION NAVIGATION WATER SUPPLY, WASTEWATER TREATMENT FINANCING REFUGE PARKS AND REC, FINANCING, WE CAN DO ANY OF THOSE . WE CAN DO ANY OF THOSE WITHIN THE RIVER BASIN OR, IF ASKED, WE CAN GO ANYWHERE IN TEXAS AND PROVIDE THOSE SERVICES. SO IT GIVES US A WIDE BLANKET OF RESPONSIBILITY. WE ARE THE POLITICAL SPONSOR FOR THE COASTAL BEND REGIONAL WATER PLANNING GROUP, THE REGION N. AND WE ARE ALSO -- TRAVIS AND I ARE BOTH VOTING MEMBERS OF THE REGION L WATER PLANNING GROUP AROUND THE SAN ANTONIO/BEXAR COUNTY AREA. LET'S TALK A LITTLE BIT ABOUT WHAT WE WANT TO DO AND WHAT WE HAVE PLANNED. WE HAVE A NEW WATER FOR SOUTH TEXAS PROJECT PLAN AND IT IS PHASE 1 OF THAT IS FOR THE DEVELOPMENT OF 100 MILLION-GALLON OF SEAWATER DESALINATION FACILITY, WHICH WOULD BE THE LARGEST IN THE UNITED STATES. WE WANT TO DEVELOP THAT THROUGH A PUBLIC-PRIVATE PARTNERSHIP. THAT DBFOM THERE, THAT MEANS DESIGN-BUILD FINANCE OPERATE AND MANAGE. AND AT SOME FUTURE DATE TRANSFER THAT BACK TO US FOR THE OPERATIONS. WE'RE GOING TO OWN IT EITHER WAY BUT IT TRANSFERS BACK TO US AT A SPECIFIC DATE. WE WILL WORK A WATER PRICE AGREEMENT WITH OUR P3 PARTNER ON A 30-YEAR TAKE OR PAY CONTRACT. SO IF IT'S 100 MGD STARTING OUT, WE WOULD HAVE 100 MGD TAKE OR PAY. AT THE END OF THIS THING WE HAVE ROOM OUT THERE ON THE 30 ACRES THAT WE HAVE LEASED TO GO UP TO ABOUT 350 MGD. BUT THERE'S LAND CONTIGUOUS TO THIS WHERE WE COULD TAKE IT TO 450 MGD. 450MILLION GALLONS PER DAY. IT'S A REVERSE OSMOSIS PLANT, WHICH IS HIGHLY SUCCESSFUL THROUGHOUT THE WORLD. WE ARE GOING OFFSHORE IN THE MARINE WORKS. THIS PICTURE KIND OF SHOWS A ROUGH. THE PINK AREA IS HARBOR ISLAND. YOU'LL SEE THE BLUE LINES GOING OUT. THAT IS TO DIVERT WATER OUT OF THE GULF OF AMERICA AND TO PUT BRINE BACK. SO THOSE ARE ABOUT 3.2 MILES OFFSHORE FOR THOSE FACILITIES. IT WILL ALSO INCLUDE ELECTRICAL DISTRIBUTION FACILITY TO POWER THE PROJECT. INCLUDED IN THE INITIAL PART OF THE P3 PARTNER PART OF THE PROJECT IS SIX MILES OF PIPELINE THAT IS TO GO FROM THE HARBOR ISLAND INTO ARANSAS PASS, TO A DELIVERY POINT OF ARANSAS PASS. THE REASON IT'S INCLUDED IN THAT IS BECAUSE THE PERMIT FOR THE GLO AND THE UNITED STATES CORPS OF ENGINEERS AND THE TCEQ REQUIRES THAT TO BE IN THAT PORTION OF THE PERMIT. WE DO HAVE THE OPTION OF PULLING THAT OUT AND MAYBE DOING THAT WITH A CONVEYANCE PIPING AT A LATER DATE. WE'LL MAKE THAT DECISION AS WE GO. NOW, THE CONVEYANCE SYSTEM ON THIS DEAL, IT'S SHOWING A SMALLER PIPE THERE, BUT THE CONVEYANCE FOR THE WATER, AFTER WE GET THE 84 OFF THE ISLAND INTO ARANSAS PASS, WE'RE GOING TO TAKE OFF FROM THERE WITH AN 84-INCH LINE. BUT THE FINAL SIZE AND DESTINATION HAS NOT BEEN SET YET BECAUSE WE'RE STILL SIGNING CUSTOMERS UP. WE KNOW WE'RE GOING TO AT LEAST BEXAR COUNTY WITH SOME OF THIS WATER BECAUSE WE HAVE CONTRACTS WITH PEOPLE IN BEXAR COUNTY TO SERVE WATER IN. SO WE WILL SIZE AND ROUTE -- COME UP WITH A ROUTE AS SOON AS WE GET ALL THE END USERS SIGNED UP. WE KNOW WE'LL HAVE PUMP STATIONS ALONG THE WAY. THERE WILL BE A MAJOR PUMP STATION AT THE FACILITY. THERE WILL BE TWO BOOSTER STATIONS ALONG THE WAY TO MAKE SURE THAT THE LINE AND THE PRESSURE STAYS THE SAME IN THE LINE AND WE CAN PUMP THIS WATER ALL THE WAY TO WHERE OUR FINAL DESTINATIONS ARE. SO THE PRELIMINARY ALIGNMENT AND THE DESIGN OF THAT PIPELINE, WE'RE GOING TO GET STARTED ON A LOT OF THAT HERE IN JUST SHORT ORDER. AND THEN THE DETAILED DESIGN WILL BE IN 2026 AS FAR AS THE PIPELINE. SO, LET'S TALK ABOUT THE LEASE AGREEMENT. WE'VE GOT A LEASE AGREEMENT WITH THE PORT OF CORPUS CHRISTI. IT'S FOR 30 ACRES OF PORT-OWNED LAND. WE HAVE A 50-YEAR AGREEMENT WITH A 25-YEAR EXTENSION. SO WE CAN OPERATE THIS THING FOR 75 YEARS OFF THE LEASE THAT WE HAVE NOW. WE HAVE THE RIGHT TO BUILD AND OPERATE THE PLANT OR HAVE SOMEONE ELSE OPERATE THE PLANT. IT INCLUDES THE WATER PIPELINE EASEMENTS TO GET THE WATER OFF THE ISLAND. AND THEN ALSO TO DIVERT WATER FROM THE GULF OF AMERICA. ALL THE IMPROVEMENTS WILL BE OWNED BY THE NUECES RIVER AUTHORITY AND THE PORT WILL BE RESPONSIBLE FOR THE PERMITS. THEY WILL PERMIT AND CONVEY THOSE TO US THROUGH THE LEASE. SO WHERE ARE WE SITTING ON THE PERMIT PROCESS? TODAY, AS WE SIT, WE HAVE RECEIVED OUR LEASE ON THE EASEMENT OF THE OFFSHORE INTAKE FROM THE GLO. WE HAVE OFFSHORE WATER RIGHTS PERMITS SUBMITTED TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR 100 MGD. IT'S SUBMITTED AND UNDER TECHNICAL REVIEW. WE HAVE SUBMITTED OUR 404 TO THE UNITED STATES ARMY CORPS OF ENGINEERS. IT'S UNDER REVIEW AND UNDERWAY. WE DID GET A FAST REVIEW ON THAT AND THAT WAS SUBMITTED IN 2025. AND THEY ARE REVIEWING THAT AND HOPEFULLY WE'LL HEAR SOMETHING POSTHASTE BACK ON THAT PERMIT. THE OFFSHORE DISCHARGE PERMIT GOES TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. AND WE HAVE OUR FIRST NOTICE COMPLETE ON 7-12-25. IT WAS SUBMITTED IN APRIL SO THAT WAS A VERY FAST TURNAROUND ON THAT PARTICULAR PUBLIC NOTICE. THE EASEMENT AMENDMENT FOR THE OFFSHORE DISCHARGE -- IN OTHER WORDS, THERE WAS ANOTHER PERMIT ISSUED FOR THIS. WE HAD TO GO BACK AND GET AN AMENDMENT FOR THE OFFSHORE DISCHARGE AND IT'S NOT YET BEEN SUBMITTED BUT IT WILL BE SUBMITTED IN THE THIRD QUARTER, WHICH IS BASICALLY WHERE WE'RE AT. SO IT WILL BE SUBMITTED SOON AND IT'S ONE OF THE FAIRLY QUICKER PERMITS TO OBTAIN. SO THERE'S OUR MILESTONES GOING THROUGH THIS. AND YOU'LL SEE WHERE WE'RE AT. I MEAN, WE ARE GETTING READY TO GO OUT AND FIND OUR P3 PARTNER. WE HAVE HAD OUR INDUSTRY DAY. OUR INDUSTRY DAY WAS A SUCCESS. I GOT TO TELL YOU I WAS TICKLED WITH THAT. WE HAD NINE PEOPLE COME IN AND WE'VE HAD TWO PEOPLE COME IN AFTER THAT. WE HAVE GOT A UNIQUE PROCUREMENT PROCESS PUT TOGETHER THAT I'M EXCITED ABOUT BECAUSE IT PUTS A LOT OF PRESSURE ON PRICING AND IT TRIES TO KEEP THE COST REGULATED THROUGH THE PROCESS. NOW, WE SAY WE'RE DELIVERING WATER FROM 2029 THROUGH 2032. JOHN, WHAT ARE YOU DOING TO US HERE? LET ME EXPLAIN THAT. TO GET WATER FROM HERE TO SAN ANTONIO, TEXAS, YOU'VE GOT TO GO RIGHT THROUGH HERE. YOU'VE GOT TO GO OFF THE ISLAND. YOU'VE GOT TO GO THROUGH ARANSAS PASS AND SAN PATRICIO COUNTY. YOU CAN PUT A DISH HEAD PLUG IN THAT. IT'S A TEMPORARY DEAL. YOU PUT THAT IN THERE AND YOU CAN ESTABLISH WATER SERVICE ON THE UPSTREAM SIDE OF THAT. SO THERE IS A WAY THAT WE CAN GET WATER HERE AS SOON AS THE PLAN IS COMPLETED AND WE EXPECT THESE FOLKS THAT ARE OUR P3 PARTNERS THAT DO THIS EVERY DAY AROUND THE WORLD, TO BE ABLE TO BUILD THAT PLANT QUICKER THAN ANYONE ELSE HERE. AND CERTAINLY BE ABLE TO OPERATE IT QUICKER THAN WE COULD TRAIN PEOPLE TO DO IT. SO WE FEEL LIKE IN 2029, SOMETIME DURING 2029, WE WILL HAVE WATER HERE IN THIS AREA. YOU KNOW, OBVIOUSLY IT'S GOING TO TAKE US A LITTLE LONGER TO GET THAT BUILT, 178 MILES OF PIPELINE BUILT. BUT THAT'S WHY WE'RE SHOWING THAT VARIANCE IN THE DELIVERY. NOW, I GET A LOT OF COMMENTS ABOUT COST, DESAL COSTS MONEY. IT DOES. I WENT TO CAIRO, EGYPT MANY YEARS AGO, PROBABLY 10, 15 YEARS AGO AND DRANK DESAL WATER IN CAIRO, EGYPT COMING OUT OF THE MEDITERRANEAN. THEY DON'T HAVE A CHOICE. THEY HAVE GOTTEN USED TO WATER. WATER WORLDWIDE FROM A DESAL PLANT, TREATED WATER FROM A DESAL SYSTEM IS BETWEEN 10 AND $15 PER THOUSAND GALLONS ON AVERAGE. WE KNOW WE CAN DELIVER WATER WITHIN THAT RANGE. THE PROBLEM I'VE GOT TODAY IS I CAN'T TELL YOU WHAT IT'S GOING TO BE BECAUSE WE'VE GOT A LOT OF VARIABLES STILL OUT. LET'S TALK ABOUT THOSE A LITTLE BIT. THE CONVEYANCE, WE DON'T KNOW EXACTLY WHERE THAT CONVEYANCE IS GOING TO GO. I MEAN, WE'VE GOT A GOOD IDEA AT THIS POINT. WE KNOW WE'RE GOING TO AT LEAST BEXAR COUNTY. WE KNOW WE'RE GOING OUT TO MEDINA COUNTY. WE KNOW WE'RE GOING THROUGH ATASCOSA COUNTY TO GET THERE. THERE'S PEOPLE IN ATASCOSA THAT HAVE CONTRACTED WITH US. BUT WE DON'T KNOW EXACTLY HOW MUCH FURTHER WE'RE GOING TO GO. WE DO HAVE 38 MGD COMMITTED TODAY. WE HAVE ANOTHER 30 WE'RE TALKING TO. SO THAT COULD TAKE US TO 68. IT'S A FIRST COME, FIRST PAY. OR FIRST PAY, FIRST SERVED, LET ME PUT IT THAT WAY, DEAL. ANY TIME WE GET TO 100, WE'RE DONE BECAUSE THAT'S OUR PERMIT. THAT'S A PHASE 1 PERMIT. WE COULD GO BACK IN AT A LATER DATE AND AMEND THAT BUT IT DOESN'T MAKE ANY SENSE TO DO IT NOW BECAUSE WE NEED WATER. AND SO WE HAVE VARIABLE THERE. WITH THE PROJECT CONVEYANCE, WE HAVE THE RIGHT-OF-WAY VARIABLE. THERE'S SOME LANGUAGE IN SB 7 THAT SAYS THERE'S A POSSIBILITY WE CAN LAY THAT 84-INCH WATER LINE NECKING DOWN TO 72 OR 48, WHATEVER IT GOES TO, IN STATE HIGHWAY RIGHTS OF WAY. IF THAT'S GRANTED TO US, THAT'S A WHOLE LOT CHEAPER THAN BUYING RIGHTS OF WAY TO GO. SO THAT AFFECTS THE COST. AND THE STATE PARTICIPATION LOAN. YOU KNOW, SB 7 TALKS ABOUT STATE PARTICIPATION LOANS. TRAVIS AND I HAVE A MEETING THIS WEEK WITH THE TEXAS WATER DEVELOPMENT BOARD. WE'RE GOING TO TALK ABOUT MAKING SURE THAT EARLY ON IN THE PROJECT WE DO THINGS RIGHT SO THAT WE CAN QUALIFY FOR THE STATE PARTICIPATION LOAN WHEN WE GET READY TO BUILD THAT CONVEYANCE PIPELINE UP THROUGH THERE. EVEN THOUGH BOTH SIDES, THE PLANT AND THE PIPELINE -- EVEN THOUGH THE PLANT'S A P3 -- IT IS ELIGIBLE FOR STATE PARTICIPATION. BUT WE WANT TO MAKE SURE THAT WE GET THAT STATE PARTICIPATION LOAN ON THE PIPELINE. AND THE REASON WHY IS BECAUSE WE WON'T NEED AN 84-INCH LINE TO START WITH BUT THERE'S NO SENSE IN US PUTTING A SMALLER LINE IN IF WE'RE GOING TO COME BACK AT A LATER DATE AND EXPAND IT. SO THE STATE PARTICIPATION LOAN WILL HELP OFFSET THAT INITIAL COST. GIVE US ABOUT TEN YEARS OR SO TO BUILD THE RATE TO A POINT WHERE IT'S NOT NEAR AS STEEP. THAT'S THE REASON I THINK WE'RE GOING TO SHIFT THAT DOWN. BECAUSE THE 10 TO $15, THAT'S AN ALL-IN PRICE THAT INCLUDES ALL THIS CONVEYANCE WE'RE PUTTING INTO. SO, HOW ARE WE GOING ABOUT THIS? I TALKED ABOUT THE FIRST PAID BASIS. ONCE CAPACITY IS SOLD, IT'S SOLD. ALL THE OTHER OFFERS WILL BE RESCINDED AT THAT POINT IN TIME. SO WE'RE SELLING TO MUNICIPAL GOVERNMENTS FOR 2,444 AN ACRE FOOT. IF YOU WANT IT YOU SIGN A CONTRACT WITH US AND WE -- FOR THE NUMBER OF ACRE FEET YOU NEED, AND WE FURNISH THAT WATER AND RESERVE THAT WATER FOR YOU IN THE PLANT. INDUSTRIAL $48.88. PEOPLE ASK ME WHY IS THE INDUSTRIAL HIGH? WELL, YOU TEND TO LOSE MORE INDUSTRIAL CUSTOMERS. WE JUST WANTED TO MAKE SURE THAT THE BUY-IN THERE WAS FAIR TO Y'ALL. IF WE GET STARTED ON THIS THING AND WE WAS TO HAVE 50 MILLION GALLONS OF INDUSTRIAL WATER AND 20 OF IT DISAPPEAR, THAT WOULD AFFECT EVERYBODY'S PRICES SO WE WANT TO MAKE SURE THEY'RE IN. THAT'S WHERE WE'RE SITTING ON RESERVATION FEES. WE WOULD LOVE TO WORK WITH YOU. LET ME TELL YOU SOME OF THE ADVANTAGES OF US WORKING WITH YOU. OUR PLANT'S EXPANDABLE. YOU CAN EXPAND IT. YOU CAN DOUBLE IT. YOU CAN TRIPLE IT AND GET UP TO 450 MGD. IT'S ENVIRONMENTALLY SOUND. WE'RE GOING DEEP WATER ON THIS THING. WE'RE COMING UP OFF THE BOTTOM. WE'RE GOING IN AT 37-FOOT OF WATER. THE DISCHARGE OF THE BRINE WILL BE AT ABOUT 31-FOOT BECAUSE WE'RE GOING TO COME UP 6 OR 7 FEET OFF THE BOTTOM. AND OUR DIVERSION POINT, THE VELOCITY IN THAT DIVERSE POINT WILL MEET TCEQ GUIDELINES AND NEVER EXCEED A HALF A FOOT PER SECOND. SO IT SHOULDN'T BOTHER THE ECOLOGICAL -- THIS IS DONE WORLDWIDE IN THE SAME WAY AND THERE HAS BEEN NO NEGATIVE IMPACTS ON ENVIRONMENT THROUGH SEAWATER DESAL DONE THIS WAY. SO THE INFRASTRUCTURE IS SUFFICIENT. YOU KNOW, IF WE GET THE STATE PARTICIPATION LOAN, WHICH I HAVE BEEN TOLD FROM THE HIGHEST OFFICE IN THIS STATE THAT COME, COME TALK TO US. WE WANT TO HELP YOU. SO I FEEL SURE. I FEEL RELATIVELY SURE IF WE FOLLOW THE GUIDELINES WE'LL GET THE STATE PARTICIPATION LOAN. AND WE CAN GET WATER DOWN AT A REASONABLE RATE. ONE OF THE OTHER THINGS THAT OUR CITY AND THE PEOPLE WE HAVE CONTRACTED WITH ARE SAYING WE CAN BLEND THIS WATER WITH WHAT WE'VE GOT AND IT'S MORE AFFORDABLE. IT'S NOT ONLY MORE PALATABLE BECAUSE IT'S A CLEANER WATER SOURCE BUT IT'S MORE AFFORDABLE. YOU CAN BLEND THE PRICE DOWN SOME. FOLKS, WE'RE COMING RIGHT THROUGH SAN PAT COUNTY WITH A GREAT BIG WATER LINE. GREAT BIG WATER LINE, AT LEAST 84-INCH. WE HAVE HAD A PATTERN OF A TRIANGLE BEFORE. WE HAVE HAD THE CITY OF CORPUS CHRISTI, THE PORT OF CORPUS CHRISTI, AND THE NUECES RIVER AUTHORITY WORK ON THE MARY RHODES PIPELINE. THANK GOD. THANK GOD WE FORMED THAT PARTNERSHIP BACK THEN. I WOULD REALLY LIKE TO SEE THIS AREA FORM A REGIONAL PARTNERSHIP AGAIN IN ACCORDANCE WITH WHAT OUR LEGISLATURE LAID OUT. AND SEE IF WE CAN'T DO THE SAME IN THE FUTURE TO SUPPLY WATER. I STAND BY FOR QUESTIONS. >> Mayor Guajardo: THANK YOU, MR. BYRUM. WE APPRECIATE THE PRESENTATION AND WE APPRECIATE YOUR PATIENCE BEING HERE. IT'S BEEN A LONG DAY SO WE THANK YOU. COUNCILMAN BARRERA. YES. >> Barrera: JOHN, YOU MAY HELP US ON ANOTHER PROJECT AND SIMPLY BECAUSE OF THE QUESTION I'M ASKING. SO OBVIOUSLY WE'VE GOT ALL THIS CONTROVERSY WITH OURSELVES, WITH THE TEXAS WATER DEVELOPMENT BOARD. WILL THE TEXAS WATER DEVELOPMENT BOARD FUND A P3? >> SURE. YEAH. IT'S A LITTLE BIT QUESTIONABLE. HERE'S THE DEAL. THE MAJORITY OF THAT WATER HAS TO BE MUNICIPAL PURPOSES. SO IF YOU GET IN THE INDUSTRIAL AREA -- IF YOU'RE SERVING INDUSTRIAL CUSTOMERS DIRECT, WHICH WHAT WE WANT TO DO IS WE WANT TO BE YOUR WHOLESALER. WE DO NOT WANT TO SERVE CUSTOMERS DIRECT. WE LIKE TO SERVE THE CITY OF CORPUS CHRISTI DIRECT. AND IF WE DO THAT, THEN THAT WOULD MAKE THE PROJECT ELIGIBLE FOR A P3, ELIGIBLE FOR STATE PARTICIPATION. >> Barrera: OKAY. THAT'S A GOOD ONE. YOU KNOW, YOU HAD INDICATED SCALABLE UP TO 450 MGD. WHAT ARE WE GOING TO TUNNEL FOR TO START OUT WITH? I NOTICE YOU HAD THE QUESTION MARK ON THE CONVEYANCE. >> I'M SORRY. I DIDN'T FOLLOW. >> Barrera: YOU SAID IT'S SCALABLE TO 450 MGD. >> YES, SIR. >> Barrera: WHAT ARE WE GOING TO START OUT WITH WHEN WE'RE TUNNELING FOR THE DISCHARGE OR THE PIPELINE TO ARANSAS PASS? >> WELL, THE PIPELINE TO ARANSAS PASS WILL BE SIZED TO HANDLE THAT LARGER LOAD. WE WANT TO SIZE IT TO THE MAXIMUM CAPACITY WE CAN RIGHT OFF THE BAT SO WE DON'T HAVE TO GO THROUGH THERE AGAIN. IT'S VERY EXPENSIVE CONSTRUCTION THROUGH THERE. THAT'S WHY WE'RE SEEKING THE STATE PARTICIPATION LOAN. 100 MGD, YOU COULD GET THROUGH A SMALLER PIPELINE BUT THE 84 WILL TAKE THE LARGER. IT MAY NOT TAKE THE FULL 450 AND WE MAY NOT NEED THAT FOR MANY YEARS TO COME BUT IT WOULD CERTAINLY TAKE A GREAT DEAL MORE THAN 100 MGD. >> Barrera: OKAY. AS ALWAYS, I APPRECIATE YOUR ENTHUSIASM AND TO BE SO BOLD. THANKS. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: WELL, I'M ALWAYS ABOUT THE PRICE. SO I'M WONDERING IS THE ULTIMATE PRICE NEGOTIABLE? >> YOU KNOW, I THINK THAT -- HERE'S WHAT I WANT TO SAY ABOUT THAT. WE HAVE IT BUILT IN OUR CONTRACT WITH THE PORT. THE PORT DID THIS FOR YOU GUYS. BECAUSE THE PORT WANTS TO SEE THIS TRIANGLE GO AGAIN TOO. IT'S NO MONEY IN THE PORT'S POCKET BUT THE PORT BUILT IN A CLAUSE IN THE CONTRACT THAT SAYS IF WE SELL WATER TO THE CITY OF CORPUS CHRISTI, WE CAN SELL IT AT A DISCOUNT RATE BECAUSE THEY HAVE AN OUTPUT FEE IN THE LEASE THAT THEY WILL FORGIVE ALL OF IT IF WE SELL IT TO YOU GUYS. THEY'VE GOT IT SET UP IN THERE WHERE WE CAN MAKE A LITTLE MORE AND YOU CAN MAKE A LITTLE MORE. I'M SAYING -- AND I WAS APPROACHED BY THIS THIS WEEK. MY TOES ARE STILL A LITTLE SORE. BUT I WAS TOLD WE'LL SIT DOWN. THAT'S NOT MY DECISION. THAT'S A POLICY DECISION FOR THESE BOARD MEMBERS. BUT I WILL CERTAINLY RUN THAT BACK UP THE TREE AND TALK WITH THEM WHEN WE GET DOWN INTO NEGOTIATIONS. AND IT'S NOT A HUGE DISCOUNT BUT IT'S SOME, YOU KNOW. AND THE OTHER THING THAT I DIDN'T MENTION -- AND LET ME TALK ABOUT ANOTHER ADVANTAGE HERE. YOU KNOW, WHEN YOU'RE LOOKING AT BONDING, YOU KNOW, CAPITAL BONDING, AND YOU'VE GOT ISSUES IN YOUR SYSTEM, IF YOU GO AND YOU SIGN A CONTRACT WITH US, THE BOND LIEN PORTION OF IT IS ON US. IT'S ON OUR BOOKS AS A CAPITAL PROJECT . IT'S ON YOUR BOOKS AS A OPERATION AND MAINTENANCE EXPENSE. THAT GIVES YOU ADDITIONAL MONIES TO -- BONDING CAPABILITIES TO MOVE FORWARD WITH. WE HAVE DONE THAT. THAT'S THE MARY RHODES. THAT WAS THAT MODEL TOO. >> Vaughn: WELL, THE PORT HAS ALWAYS BEEN VERY SUPPORTIVE OF THE CITY, SO THAT'S NICE TO KNOW THEY BUILT THAT IN. I KNOW YOU'RE NOT GOING TO BE ABLE TO ANSWER THIS BUT TIME. YEARS. ANY IDEA HOW MANY YEARS IT'S GOING TO TAKE TO BUILD IT? >> I REALLY THINK 2029 WE CAN GET WATER TO THIS AREA. YEAH, TO THE COASTAL BEND AREA. NOW WE CAN'T GET WATER TO BEXAR COUNTY IN 2029. THAT'S JUST NOT GOING TO HAPPEN. I'VE BEEN SAYING THAT ALL ALONG, I HAVEN'T BEEN FORTHRIGHT WITH THE FACT THAT WE CAN'T GET A WATER LINE BUILT ALL THE WAY TO THE UPPER BASIN IN THAT PERIOD OF TIME. BUT I THINK WE CAN BY 2032. >> Vaughn: I WANT TO THANK YOU FOR PRESENTING IT TO US BECAUSE WE NEED TO LOOK AT EVERYTHING. IT WAS A VERY NICE POWERPOINT, BY THE WAY. IT LOOKED VERY GOOD. >> I HAD HELP WITH THAT. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: THANK YOU FOR YOUR PATIENCE AND PRESENTATION. I WANT TO MAKE SURE I UNDERSTAND. YOU SHOWED IN YOUR PRESENTATION THAT YOU'VE GOT A -- THAT YOU HAVE THE ABILITY AND YOU WILL SELL TO INDUSTRY AND YOU'LL SELL TO MUNICIPALITIES ALSO. BUT JUST UNDERSTANDING IN TERMS OF LOOKING AT YOUR FINANCES THAT OPTIMALLY YOU PREFER TO SELL TO MUNICIPALITIES? >> I WOULD RATHER BE A WHOLESALER TO MUNICIPALITIES, YES SIR. THAT WAY I DON'T HAVE ANY END USER RESPONSIBILITIES. I CAN GET BY WITH LESS PEOPLE. I CAN GET BY WITH, YOU KNOW, IT'S JUST EASIER FOR US TO DO IT THAT WAY. >> Roy: I DON'T KNOW IF YOU'RE WILLING TO RELEASE THIS INFORMATION, BUT I THINK YOU SAID 38 MGD RIGHT NOW WE'RE UNDER CONTRACT? >> YES, SIR. >> Roy: IS THAT THE MAJORITY OF MUNICIPALITIES OR INDUSTRY? >> I THINK IT'S A MILLION GALLONS OF DAY THAT HAS BEEN SPOKEN FOR BY AN INDUSTRY. AND THEY HAVEN'T PAID THE BILL YET SO, YOU KNOW, IT'S ALL MUNICIPAL WATER UP THROUGH TODAY YES SIR. >> Roy: THAT WAS THE ONLY QUESTION I HAD. THANK YOU. >> Mayor Guajardo: COUNCILWOMAN CAMPOS. >> Campos: THANK YOU, MAYOR. OKAY. SO IN ORDER FOR YOU TO QUALIFY FOR THESE LOANS, YOU WOULD HAVE TO HAVE A MUNICIPALITY, CORRECT? I MEAN, IN ORDER FOR THESE PRICES -- I THINK YOU CALCULATED THAT YOU HAD TO HAVE A CERTAIN PERCENTAGE. 24? WHAT IS THE RESERVATION FEE? >> THAT'S JUST THE RESERVATION FEE ITSELF, MA'AM. BUT YOU BRING UP A GOOD POINT. WE HAVE TO HAVE THE 100 MGD. WE WANT TO HAVE ALL THAT RESERVED BEFORE WE GET STARTED. YOU KNOW, AND WE CAN PROBABLY GET STARTED WITH SOME OF THE FINANCING AT HALF OF THAT. SO WE'RE WITHIN 12, 14 MILLION GALLONS A DAY TO BE OFF RUNNING WITH THE FINANCING. BUT IT IS BASED -- OUR RATE WILL BE THE SAME AS FAR AS WE'RE CONCERNED, IF WE HAD TO SELL TO INDUSTRY. NOW, THE REASON WHY WE WENT THE INDUSTRIAL ROUTE, THE REASON THAT'S EVEN IN THERE IS WE DIDN'T KNOW THAT THERE WOULD BE ENOUGH CITIES SIGN UP FOR THIS. NOW WE FIND IT TO BE THE EXACT OPPOSITE. IT'S MAINLY CITIES AND WATER SUPPLY DISTRICTS THAT ARE WANTING THE WATER AND MOST OF THE INDUSTRIES THAT ARE COMING OVER, THEY'RE GONE. YOU KNOW, WE WERE TALKING TO SEVERAL OF THEM BACK WHEN WE FIRST HAD THIS PROPOSAL SENT TO THE PORT. AND MOST OF THOSE ARE GONE. >> Campos: REALLY? REALLY IT IS THE -- SO THE NEED SEEMS TO BE COMING FROM THE MUNICIPALITIES. >> YES, MA'AM. TO BE HONEST WITH YOU, I THINK THAT'S BETTER FOR US. >> Campos: THAT IS BETTER. THAT'S THE OPPOSITE OF WHAT WE'VE BEEN HEARING. >> YES, MA'AM. THAT WAY IF YOU FOLKS WANTED TO SERVE INDUSTRY, YOU COULD SERVE INDUSTRY THROUGH THIS. WE SELL YOU THE WATER AND YOU BLEND THAT COST DOWN AND THAT HELPS INDUSTRY TOO. >> Campos: YEAH. BUT THAT IS THE OTHER POINT IS THAT MUNICIPALITIES WOULD BE THE ONES TO ACQUIRE THE WATER BUT THEN TURN AROUND AND GET SOME OF THESE LARGE WATER USERS TO TAKE UP MOST OF THAT WATER. SO, AGAIN, WE WOULD BE BACK TO SQUARE ONE. >> WE GET REQUESTS. PEOPLE ARE CALLING US FROM TIME TO TIME. HEY, YOU GUYS GOT WATER? WE GOT WATER COMING BUT WE DON'T HAVE WATER TODAY TO SELL. I REALLY TRULY BELIEVE IN MY HEART OF HEARTS THAT WHEN THIS BECOMES A REALITY, YOU KNOW, WATER, THE INDUSTRY IS COMING BACK BECAUSE OF THE ADVANTAGES THEY HAVE HERE WITH THE PORT, WITH THE CITY. YOU KNOW, THE LARGE POPULATION BASE TO DRAW EMPLOYMENT FROM. IT'S COMING BACK. >> Campos: WELL, AND THAT WOULD BE MY FEAR. MY FEAR IS THAT WE WOULD BE INUNDATED WITH INDUSTRY AND IT WOULD CHANGE THE LANDSCAPE OF OUR COASTAL BEND. AND THAT'S WHAT I KNOW, FROM WHAT I HEAR, IS THAT INDUSTRY IS JUST TAKING ALL OVER THE WHOLE COAST IS CHANGING. THAT'S ONE OF THE REASONS WHY I HAVE BEEN OPPOSING DESALINATION IS BECAUSE OF THE INFLUX THAT I FORESEE COMING. BUT THE OTHER THING IS I JUST WANTED TO THANK YOU FOR BRINGING THIS PROJECT AND I DON'T KNOW, DOES THAT MEAN THAT WE WOULD HAVE TO COMMIT? LIKE WE WOULD HAVE TO SAY WE'RE GOING TO, LET'S SAY, BUY 10 MGD IN ORDER FOR -- BASICALLY WHAT IS IT THAT YOU'RE TRYING TO GET FROM US? YOU'RE WANTING US TO COMMIT A CERTAIN AMOUNT? >> I WOULD LIKE TO SEE YOU COMMIT TO WATER YOU NEED. YOU PROBABLY NEED 30 AND TO GROW YOU PROBABLY NEED 45, 50. I WOULD RATHER SEE THAT WATER GO HERE THAN LEAVE THIS AREA. >> Campos: THANK YOU, SIR. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: YOU MAY NOT BE ABLE TO ANSWER THIS. FOR THE CITY TO RESERVE WATER, WHAT'S THE COST FOR MGD? >> WELL, I KNOW IT'S 7 CENTS PER THOUSAND. THAT'S WHAT IT FIGURED OUT. TRAVIS WORKS IN GALLONS. I WORK IN ACRE FEET. I'M SORRY. >> Vaughn: THAT'S OKAY. >> I'M AN OLD MAN. >> Vaughn: YOU SAID YOU SOLD HOW MUCH? >> WE'VE SOLD 38. 38 MGD. SO 38% OF THE PLANT CAPACITY. I CAN TALK IN THOSE -- >> Vaughn: THAT'S REALLY GOOD. SO THAT MEANS THE 38 THAT WERE SOLD, TOWNS HAVE ALREADY PAID. >> YES, MA'AM. WE'VE GOT THAT IN THE BANK AND WE'RE WORKING THROUGH THE FUNNEL WITH BETWEEN -- I THINK IT'S 28 TO 38 IS WHAT'S WORKING THROUGH THE FUNNEL NOW. SOME OF IT ALWAYS FALLS OUT THROUGH A SALES FUNNEL. BUT THEY ARE TALKING TO US. OUR PHONES ARE STILL RINGING AND POOR TRAVIS, HE CAN'T EVEN SHAVE, THAT'S HOW BUSY HE IS. >> Vaughn: I KNOW YOU'RE NOT GOING TO TELL US BUT I'M JUST CURIOUS, IS IT SURROUNDING AREAS? YOU HAVE OBVIOUSLY SOLD SOME OUT OF OUR COUNTY. >> ALL OF THIS HAS BEEN SOLD OUT OF THE COUNTY. >> Vaughn: REALLY? >> YES, MA'AM. BECAUSE I HAVE NOT SOLD -- OFFERED ANY TO YOUR CUSTOMERS BECAUSE THEY'RE YOUR CUSTOMERS AND YOUR WATER RATES ARE BASED ON THAT. NOW, HAVE I HAD REQUESTS? ABSOLUTELY. WE'VE HAD A LOT OF REQUESTS, NOT ONLY BY PEOPLE ON YOUR SYSTEM BUT PEOPLE ON YOUR WHOLESALE SYSTEM, WHICH IS SAN PAT MUNICIPAL WATER DISTRICT. THOSE PEOPLE ARE CALLING US ALL THE TIME. WE DON'T GO SEE THEM BECAUSE I COMMITTED THAT WE WOULDN'T. NOW, THERE WILL BE A DAY WHERE, YOU KNOW, SOMETHING'S GOT TO GIVE. THESE PEOPLE NEED WATER AND THEY NEED WATER FOR GROWTH. AND SO THAT DECISION WILL HAVE TO BE MADE BUT I HAVE A FEELING WE'RE PROBABLY GOING TO SELLING ALL OF THE WATER BEFORE WE GET TO THAT POINT. I HOPE WE DO. >> Vaughn: THAT'S GOOD. THANK YOU. >> Mayor Guajardo: COUNCILMAN SCOTT. >> Scott: GOOD TO BE TOGETHER AGAIN. I THOUGHT YOUR CONTRACT WITH THE PORT SAYS YOU CAN'T SELL WATER TO THE CITY'S CCN -- >> IN THE CCN WE CANNOT. WE CAN PROVIDE WHOLESALE WATER BUT WE CAN'T SELL DIRECT WATER. AND THAT'S NOT ONLY A PORT DEAL, THAT'S A STATE -- ANY TIME -- >> Scott: YOU SAID AT SOME POINT YOU'RE GOING TO START SELLING WATER IN OUR CCN. >> THERE ARE SOME CITIES OUTSIDE YOUR AREA -- >> Scott: MY POINT IS THE CONTRACT SAYS YOU CAN'T. >> THAT'S NOT A CCN. A WHOLESALE AGREEMENT IS NOT PART OF YOUR CCN AND YOUR CCN IS YOUR CITY LIMITS PLUS SOME OF YOUR ETJ. >> Scott: I SAW IT. YEP. SO YOU HAVE 38 MGD IN THE BANK. >> YES, SIR. >> Scott: THAT'S AWESOME. THAT RESERVATION IS NON-REFUNDABLE OR DO WE GET IT BACK? >> IT'S NON-REFUNDABLE NOW. IT WAS REFUNDABLE UP UNTIL THE POINT WE HAD OUR LEASE SIGNED. >> Scott: SO IT'S NON-REFUNDABLE NOW. >> THAT'S RIGHT. >> Scott: SO IF WE SIGN A RESERVATION AND THE NUMBER COMES IN CRAZY HIGH, WE DON'T GET IT BACK. THAT'S JUST I'M FASCINATED THAT PEOPLE ARE SIGNING RESERVATIONS WITHOUT THE COST. >> IT'S WET AND GOOD QUALITY. >> Scott: I KNOW. I THINK THAT'S INTERESTING. >> THAT'S WHAT -- >> Scott: FARMERS ARE TELLING ME THERE'S A NUMBER AND IF IT'S ABOVE THAT NUMBER, THEY JUST DON'T FARM. >> YOU'RE EXACTLY RIGHT. IN A FARM SITUATION, THAT'S WHY REUSE AND THAT KIND OF STUFF WORKS BETTER THERE. >> Scott: I KNOW YOU TALKED TO SOME COUNTIES WHO SAID WE HAVE A NUMBER AND IF IT'S ABOVE THAT NUMBER -- WHAT'S THE TRANSMISSION NUMBER TO MOVE WATER TO SAN ANTONIO. >> IT'S A WHOLE LOT OF MONEY. >> Scott: AN EIGHT-FOOT LINE TO BEXAR COUNTY WOULD BE WHAT? WE DON'T KNOW? >> ABOUT $3 BILLION. >> Scott: IT WAS MORE AN OPERATING COST PER THOUSAND GALLONS. I APPRECIATE WHAT YOU'RE DOING. I WAS ALL EXCITED AND I GOT THE COUNTY -- I GOT YOUR LEASE AGREEMENT WITH THE PORT AND THEN I WASN'T THAT EXCITED BECAUSE IT WAS TOO LONG FOR ME TO READ. HEY, YOU'RE COMING, I'LL JUST ASK YOU QUESTIONS. >> I CAUGHT THAT THE OTHER DAY FROM MY BOARD. HEY -- >> Scott: IT'S A LOT OF WORDS IN THERE. WHAT IS THE PORT CHARGING YOU? WHAT DOES THE PORT CHARGE? >> I KNOW WHAT THE PAYMENT IS NOW AND THE DEVELOPMENT PAYMENT, THE RESERVATION PAYMENT THAT WE'RE PAYING THEM RIGHT NOW IS ABOUT $32,000 A MONTH. NOW, THAT GOES UP WHEN WE START BUILDING THE PLANT. AND COUNCILMAN SCOTT, I'M SORRY. I DON'T REMEMBER WHAT THAT NUMBER IS. >> Scott: I JUST DIDN'T KNOW WHEN IT STARTED. IT'S IN THE DOCUMENT. I'M BEING LAZY. I APOLOGIZE. >> THAT'S OKAY. THAT DOCUMENT, MAN. BUT I THINK THE LAND IS VALUED AT $500,000 AN ACRE. >> Scott: THAT, I SAW. >> THAT'S THE VALUE OF THE LAND. WE'VE GOT TO RETIRE THAT IN A 12-MONTH PERIOD. >> Scott: YOU'RE PAYING THAT NOW? >> NO. RIGHT NOW WE'RE PAYING JUST THE MINIMUM FEE. WE'RE PAYING -- I WANT TO SAY $32,000 IS OUR PAYMENT NOW BUT I WANT TO SAY THAT THAT'S GOING TO, I DON'T KNOW. I DON'T KNOW. >> Scott: YOU'RE GOING TO MAKE ME READ THAT THING. I'M GOING TO BE THINKING OF YOU LATE TONIGHT AND IT WON'T BE GOOD. YOU THINK IT'S $32,000 A MONTH NOW BUT THEN YOU HAVE -- AND IN FACT I TALKED TO A PORT COMMISSIONER, THANKED HIM FOR THE DISCOUNT THAT THEY PROVIDE IF YOU SELL, YOU KNOW, WATER TO THE CITY OF CORPUS CHRISTI. BUT THEY'RE CHARGING SOME PER THOUSAND GALLON FEE ONCE YOU START MOVING WATER, RIGHT? >> THAT'S IT, YES, SIR. >> Scott: THE ROYALTY. >> 20 CENTS. IT'S A REDUCTION -- NO, IT'S AN OUTPUT CHARGE. THAT'S WHAT IT'S CALLED. >> Scott: TO ME IT'S A ROYALTY. OUTPUT IS A BIG WORD FOR A KINGSVILLE BOY. YES. I WROTE A NOTE. I ASKED SOMEBODY -- AND YOU CAN GET SOMEBODY AND WE'LL ARGUE ABOUT IT LATER. THERE WAS A CONVERSATION ABOUT LEASE VERSUS DEBT AND MY UNDERSTANDING IS THAT THE CITY WILL BOOK A LONG-TERM LEASE AS LONG-TERM DEBT AND THE BOND RATING AGENCIES ARE LOOKING AT LONG-TERM DEBT WHEN THEY CALCULATE, YOU KNOW, WHAT YOUR RATE'S GOING TO BE. WHAT I HEARD FROM YOUR STAFF, PETER, WAS WHETHER IT'S A LONG-TERM LOAN OR LONG-TERM LEASE IT'S LOOKED AT THE SAME. THE DIFFERENCE IS AT THE END OF THE DAY WHEN YOU FINISH THE LEASE YOU DON'T HAVE ANYTHING TO SHOW FOR IT. WHEREAS IF YOU BOUGHT IT YOU HAVE SOME ASSET. IT'S DEPRECIATED BUT YOU STILL HAVE SOME ASSET. I APOLOGIZE. I HAD ACTUALLY ASKED THAT QUESTION SOMETIME AGO. THIS IS SO MUCH FUN. THANK YOU AGAIN FOR BEING HERE. I DO HAVE A NOTE THAT SAYS, HEY, MAN, I THINK YOU CONFIRMED THE INNER HARBOR PRICE. YOU'RE SAYING YOURSELF IS 10 TO 15 AND THAT'S IN THE RANGE OF INNER HARBOR. I WROTE A NOTE SAYING THANK YOU FOR AFFIRMING. CAN YOU SEND ME -- THANK YOU, MA'AM. THERE'S THIS ONGOING CONVERSATION ABOUT P3s. IF SOMEBODY SOMEWHERE HAS AN EXAMPLE HOW THE TEXAS WATER DEVELOPMENT BOARD FUNDED A P3 PROJECT, THAT WOULD BE AWESOME. THAT WOULD BE AWESOME. >> I CAN GET YOU MORE INFORMATION ABOUT THAT AFTER THURSDAY. I SURE CAN. >> Scott: EVERY TIME I TURN AROUND SOMEBODY IS TALKING CAN OR CAN'T. JUST SHOW ME. >> I WANT TO MAKE SURE, BEFORE WE GO -- >> Scott: I'M GOING TO MAKE THAT NOTE TO MYSELF. RESERVATIONS, ANNUAL PAYMENTS, YOU'RE THE MAN. GOT THAT, GOT THAT. PUTTING WATER UP TO BEXAR COUNTY P3 COMPETITIVE. PRESENTATION. . SO WE HIRED BLACKMON BEACH. I HAVE HEARD GREAT THINGS ABOUT THEM AND I WANTED TO AFFIRM THEM IF THEY WERE. THE NEXT STEP -- I WAS AT YOUR BOARD MEETING. IT'S NOT LIKE I'M SPYING ON YOU. SO YOU HAVE TO BOOK ENOUGH MONEY IN YOUR RESERVATION FEES TO HIRE THEM TO GO TO THE NEXT STEP? >> TO TASK THE ORDER TO. WE ARE DONE WITH TASK ORDER ONE. >> Scott: BUT YOU HAVEN'T STARTED TASK ORDER 2. >> WE HAVE NOT INKED THAT DEAL YET. >> Scott: DO YOU HAVE A TIMELINE ON TASK ORDER 2? >> WE WANT TO GET STARTED AS QUICK AS WE CAN. >> Scott: BUT WE HAVEN'T YET? >> NO. >> Scott: I THINK THAT'S IT, MAN. THANK YOU FOR YOUR TIME. I APOLOGIZE FOR NOT BEING BETTER PREPARED AND I APPRECIATE WHAT YOU GUYS ARE DOING. >> Mayor Guajardo: THANK YOU, COUNCILMAN. SO, MR. BYRUM, I'M A LITTLE CONCERNED ABOUT THAT TIMELINE. SO THERE'S NO POWER. NO INFRASTRUCTURE. PERMITS, YOU SAID Y'ALL ARE WORKING ON THOSE. IN 2029? >> WE'RE NEGOTIATING A POWER DEAL WITH POWER GENERATORS OUT OF THE AREA, BY THE WAY. YOU CAN GET POWER GIVEN TO YOU FROM SOMEWHERE. THAT'S BEYOND ME. I'M NOT THAT SMART. BUT AND THE TRANSMISSION PART OF IT WE'VE GOT TO WORK THROUGH. WE ARE IN THE PROCESS OF FINALIZING WHEN WE CAN GET THE GO DATE ON POWER. AND THE GO DATE ON POWER IS GOING TO CERTAINLY BE WHEN WE FIRE THOSE BIG PUMPS OFF DOWN THERE. BUT WE CAN PROBABLY, YOU KNOW, DO SOME ON-SITE GENERATION FOR A WHILE UNTIL THAT'S DONE. BUT WE FEEL GOOD ABOUT 2029. >> Mayor Guajardo: WATER HERE 2029. >> I DO. >> Mayor Guajardo: ALL RIGHT. I'M ALSO VERY CONCERNED ABOUT THE PRICE. YOU KNOW, I THINK I MENTIONED THAT. BUT, YOU KNOW -- >> THAT'S WHY WE'VE BEEN SO CAREFUL TRYING TO BUILD CONTROLS, PRICE CONTROLS IN THE PROCESS. >> Mayor Guajardo: SO I'LL BE HONEST, I DON'T BELIEVE THAT THE CITY OF CORPUS CHRISTI SHOULD PAY A RESERVATION FEE. I THINK WE PUBLICLY SAID THAT WHEN WE WERE IN AUSTIN. >> YOU DID. >> Mayor Guajardo: AT THE SENATOR'S OFFICE. >> IT'S TOTALLY NOT FAIR TO EVERYBODY ELSE THAT'S PAYING ONE. >> Mayor Guajardo: OUR PORT HAS DEVELOPED $50 MILLION IN HARBOR ISLAND, $10 MILLION INVESTED IN GETTING THOSE PERMITS. IT'S JUST SOMETHING TO THINK ABOUT THERE. >> I DO UNDERSTAND THAT. MY POINT BACK -- AND I WASN'T TRYING TO BE A SMART ALECK. MY POINT IS I CAN'T DO FOR PETER WHAT I CAN'T DO FOR PAUL. I'M A PUBLIC AGENCY AND I HAVE TO TREAT EVERYBODY THE SAME WAY. >> Mayor Guajardo: AGAIN, IT'S A CONVERSATION. I'M JUST LETTING YOU KNOW. >> LET'S SIT DOWN. >> Mayor Guajardo: -- HOW WE FEEL AND ASKING GREAT QUESTIONS. WE APPRECIATE THE PRESENTATION. >> THANK Y'ALL. WE'LL SEE YOU AGAIN. >> Mayor Guajardo: THANK YOU, MR. BYRUM. WE APPRECIATE IT. REBECCA, IS IT THE SAME SECTIONS THAT WE'RE GOING TO USE? SAME ONES? >> City Secretary: YES, MA'AM. >> Mayor Guajardo: THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEMS 16, 17, AND 18 PER TEXAS GOVERNMENT CODE SECTION 551.071, 551.072, AND 551.087. AND WE WILL RETURN. [EXECUTIVE SESSION] >> Mayor Guajardo: OKAY. WE'RE GOING TO GO AHEAD AND RECONVENE OUR MEETING. COUNCILMAN SCOTT. >> Scott: MAYOR, MAKE A MOTION TO AUTHORIZE THE EXKEUKS OF AGREEMENTS WITH ATTORNEYS, EXPERTS AND SERVICE PROVIDERS TO ASSIST IN THE LAWSUIT OF WILLIAM KENT MCKEIR VERSUS THE CITY OF CORPUS CHRISTI IN A CUMULATIVE ARDED AMOUNT NOT TO EXCEED $197,000. >> SECOND. >> Mayor Guajardo: OKAY. WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT -- >> City Secretary: PUBLIC COMMENT MAYOR. >> Mayor Guajardo: WOULD ANYONE IN THE AUDIENCE LIKE TO MAKE A COMMENT ON THIS ITEM? OKAY. THERE BEING NO ONE WE'LL CLOSE PUBLIC COMMENT AND EVERYONE PLEASE SUBMIT YOUR VOTE. >> Mayor Guajardo: OKAY. THE MOTION CARRIE CARRIES. LET'S SEE. SIX. WE HAVE THREE ABSENT PEOPLE. >> Scott: YES, MA'AM. >> Mayor Guajardo: THE MOTION CARRIES. >> Scott: I MAKE A MOTION TO AUTHORIZE THE EXKEUKS OF AGREEMENTS, FOR FUNDS AND OTHER PROFESSIONAL CONSULTING AND EXPERT WITNESS SERVICES AND ASSOCIATED COURT REPORTER COPY, TRAVEL, DATA AND OTHER COSTS FOR THE LAWSUIT OF ANNETTE RODRIGUEZ V THE CITY OF CORPUS CHRISTI, ET AL, IN A TOTAL ADDED AMOUNT OF UP TO $22,719 WITH THE LAW FIRM OF ROY STON,. >> Raymond: ER, VICKRY AND WILLIAMS, LLP AND OTHER PROVIDERS OF SERVICES RELEVANT TO SAID LAWSUIT. THAT'S MY MOTION, MAYOR. >> SECOND. >> Mayor Guajardo: HE MADE THE MOTION, SO -- >> I'M SORRY, SECOND. >> Mayor Guajardo: PLEASE SUBMIT YOUR VOTE. >> City Secretary: PUBLIC COMMENT SORRY? DID YOU ASK FOR PUBLIC COMMENT ON THIS ONE, TOO? >> Mayor Guajardo: NO, DID NOT. WOULD ANYONE LIKE TO MAKE PUBLIC COMMENT ON THIS ITEM? SORRY, I'M STILL GETTING USED TO THE PUBLIC COMMENT ON THESE EXECUTIVE SESSION ITEMS. >> RACHEL CABALLERO, DISTRICT ONE. I'D LIKE TO MAKE A REQUEST TO THIS COUNCIL AND WHOEVER ELSE IS INVOLVED THAT WE MAKE OUR BEST EFFORT TO QUIT GETTING INVOLVED IN LAWSUITS WITH CITY EMPLOYEES. MAYBE WE MAKE IT A HEALTHIER WORK ENVIRONMENT SO PEOPLE THAT LEAVE AND NO LONGER WORK FOR THE CITY OF CORPUS CHRISTI DON'T CONTINUOUSLY SUE US. THANK YOU. >> Mayor Guajardo: THANK YOU. WOULD ANYONE ELSE LIKE TO MAKE PUBLIC COMMENT ON THIS ITEM? OKAY. WE'LL CLOSE PUBLIC COMMENT. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. OKAY. SO WE'RE GOING TO MOVE ON TO ITEM O, WHICH IS OUR GENERAL PUBLIC COMMENT PERIOD. WE HANDLE VERY SIGNIFICANT MATTERS UP TAXPAYER DOLLARS MAKING IT INHERENT THAT WE... AND INCLUSIVENESS GUIDE OUR ACTIONS AND WE AIM TO ACHIEVE THEM WHILE RESPECTING OUR CITY COUNCIL POLICY WHICH HAS BEEN IN PLACE FOR 30 YEARS. PUBLIC COMMENT SERVES AS ONE AVENUE FOR COMMUNICATION, BUT IT IS NOT THE SOUL METHOD. YOU CAN -- REACH OUT TO THE MEMBERS OF THIS COUNCIL BY PHONE, E-MAIL OR SCHEDULING AN IN-PERSON COMMENT. WITH THAT, LET'S PROCEED TO PUBLIC COMMENT. BEFORE WE BEGIN I'D LIKE TO TAKE A MOMENT TO ADDRESS AN IMPORTANT ISSUE, THOUGH. 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 AND IT WILL NOT BE TOLERATED OR VIOLATIONS TO DECORUM WILL NOT BE TOLERATED THERE. HAVE BEEN REPEATED INSTANCES OF INDIVIDUALS USING PROFANITY, SHOUTING OVER OTHERS AND SHOWING BLATANT DISREGARD FOR THE RULES THAT GOVERN OUR PROCEEDINGS. I HAVE BEEN MORE THAN PATIENT, I'VE ALLOWED SPACE FOR DIFFERING VIEWPOINTS AND I WILL CONTINUE TO WELCOME RESPECTFUL DISAGREEMENT BUT WE WILL NOT ALLOW THIS COUNCIL OR THE PUBLIC WE SERVE TO BE DISRESPECTED, SO WE'RE HERE TO DO THE PEOPLE'S WORK SO LET'S PROCEED, PLEASE, IN THAT SPIRIT. I'LL ASK CITY ATTORNEY MILES RISLEY TO PLEASE REVIEW THE COUNCIL MEETING RULES OF DECORUM, WHICH WILL BE DISPLAYED ON THE TELEVISION SCREENS ABOVE. >> Risley: ALL CITIZENS MUST BE COURTEOUS, POLITE AND RESPECTFUL OF ONE ANOTHER INCLUDING THE CITY COUNCIL AND CITY STAFF. THE MAYOR AND COUNCILMEMBERS SHALL BE REFERRED TO BY TITLE OR TITLE SURNAME. ALL REMARKS MUST BE ADDRESSED TO THE MAYOR AND CITY COUNCIL AND NOT TO INDIVIDUALS. CITIZENS ARE ONLY PERMITTED TO SPEAK ON CITY-RELATED SUBJECT MATTER. SPEAKING ON ANY NONCITY-RELATED MATTER IS PROHIBITED. LOUD, BOYS TER ROUSE, PROFANE OR OBSCENE LANGUAGE OR BEHAVIOR IS NOT ALLOWED. CITIZENS MUST REFRAIN FROM DISTURBING NOISE OR ACT DISRUPTING TO THE CITY COUNCIL BUSINESS. >> Mayor Guajardo: THANK YOU, MR. RISLEY. SO IF YOU'LL PLEASE STATE YOUR NAME AND CITY IN WHICH YOU LIVE BEFORE BEGINNING YOUR COMMENT. CITIZEN COMMENTS ARE LIMITED TO THREE MINUTES WHILE NONRESIDENT COMMENTS ARE LIMITED TO ONE MINUTE. A VISIBLE TIMER POSITIONED NEAR THE CITY SECRETARY'S DESKS WILL HELP MANAGE THAT ALLOTTED TIME. IF YOU HAVE A PETITION OR RELEVANT INFORMATION, PLEASE PRESENT IT TO THE CITY SECRETARY BEFORE SPEAKING. SHE WILL DISTRIBUTE IT TO US. SO WITH THAT, WE HAVE 27 -- 28 -- I THINK 30, ACTUALLY, INDIVIDUALS WHO ARE SIGNING UP -- OR WHO HAVE SIGNED UP AND WE'LL START WITH MR. STEVEN CLEPPER. MR. STEVEN CLEPPER. OKAY. PATRICIA ANDERSON. >> I BELIEVE SOMEBODY BEAT ME. I HAVE SLIDES. YES MA'AM. LET'S SEE. ALL RIGHT. GAIL ANDERSON, DISTRICT 2. FIRSTAL COLAIDS TO COUNCILMAN WHO DID NOT CAVE TO THREATS OF BEING RECALLED OR FEARMONGERING, INSTEAD THANK YOU FOR STANDING FIRM AND FOR THE CITIZENS OF CORPUS CHRISTI. LET'S RECAP. INNER HARBOR COST ESTIMATE INCREASED 60% FROM 757 MILLION TO 1.2 BILLION. GWI OR GLOBAL WATER INTELLIGENCE, A LEADING PUBLISHER IN THE INTERNATIONAL WATER INDUSTRY, SAID THIS IS 10 TIMES WHAT YOU WOULD PAY IN THE MIDDLE EAST. AS ONE COUNCILMAN SAID, THAT'S TOO MUCH FOR 30 MILLION-GALLONS PER DAY. TWO, HOW DID WE GET OURSELVES IN THIS MESS? GWI SAID THE PROGRESSIVE DESIGN-BUILD IS THE WRONG PROCUREMENT METHOD LEADING TO NEVER-ENDING PRICE INCREASE. .3, GRANTED, WE HAVE DUG A SMALL HOLE, BUT NOW LET'S STOP DIGGING. OUR 47 MILLION DEBT IS NOTHING COMPARED TO THE 100 MILLION WE ARE GOING TO PAY YEAR IN AND YEAR OUT, AND THAT'S ON THE LOW SIDE. .4, SPEAKING OF LOW SIDE, 1.2 BILLION IS 10% DESIGN ESTIMATE, AND HAS POTENTIAL INCREASING TO 1.8 BILLION. IT DOESN'T HAVE -- IT DOES HAVE A SMALL CHANCE OF DECREASING, BUT I WOULDN'T COUNT ON THAT. ITEM 5, 32 MILLION PER YEAR OPERATING EXPENSE APPEARS TO BE ON THE LOW SIDE. PREVIOUS ESTIMATES WERE 60 MILLION BY THE TEXAS DEPARTMENT -- TEXAS DEVELOPMENT WATER BOARD AND 46 MILLION BY FREESE & NICHOLS. ONE OF THE LARGEST COMPONENT OF OPEX IS ENERGY. OP EXINCREASES FROM 32 MILLION TO 50 MILLION PER YEAR WHEN USED TWB'S ENERGY COST OF 9-CENTS PER KILOWATT HOUR. .6, THERE HAVE BEEN TWO SALT WATER DESAL PLANTS IN THE UNITED STATES, BOTH WERE DISASTERSES, OVERBUDGET BEHIND SCHEDULE. NO ONE HAS EVEN DARED BUILT ANOTHER PLANT IN THE LAST 10 YEARS. .7, CALIFORNIA WATER PLANT EXPERT SAYS DESAL IS THE MOST EXPENSIVE RESOURCE AND IT DOESN'T MAKE SENSE TO GO THERE UNTIL YOU'VE EXHAUSTED MORE AFFORDABLE SUPPLY OPTIONS. IN OTHER WORDS, IT'S THE CHOICE OF A LAST RESORT. EIGHT, LYLE LARSON, ANOTHER REKNOWN WATER EXPERTED SAID LET PRIVATE SECTOR BUILD IT. THAT'S HOW IT'S DONE EVERYWHERE, A LOT LESS RISKING. FINALLY, LET'S VOTE NO FOR INNER HARBOR. WE HAVE LESS EXPENSES AND FASTER WATER SOURCES. LET'S GET THE PERMITS AND THANK YOU FOR MOVING FORWARD ON EVANGELINE AND LET'S DO WHAT'S BEST FOR THE CORPUS CHRISTI TAX -- THE RATEPAYERS, THANK YOU. >> Mayor Guajardo: THANK YOU, MRS. ANDERSON. SEAN MERIT. >> SEAN MERIT, DISTRICT 5. JOHN ADAMS SAID THAT FACTS ARE STUBBORN THINGS. HE DIDN'T KNOW HOW STUBBORN PFAS WAS. THESE ARE FACTS, ALL STAGE III WATER RESTRICTIONS. THE CITY USES 85 MILLION DWAL LONS DAILY. CORPUS CHRISTI FACES A WATER CRISIS THAT CAN'T WAIT. NOW, THE CITY'S PLANT DESAL PLANT FALLS SHORT AND JUMPS P FAS LADEN BRINE INTO THE INNER HARRY STYLES BON USING JET DIFFUSION. THAT'S A POLLUTION TIME BOB. PFAS DOES NOT VANISH, IT SPREADS INTO OUR FISHERIES, BAYS AND US. A ZERO DISCHARGE LIQUID SYSTEM FIXES THIS. USE REVERSE OSMOSIS LIKE CARLSBAD, REMOVE 99% OF GREATER PFAS, 30 MILLION-GALLONS OF 13 WATER, WE CAN SELL IT AT 125 PER 1,000-GALLONS AND BRING US IN LINE WITH SAN ANTONIO PRICES AND NET 13.7 YEARLY. NOW, HOW CAN WE AFFORD SELLING WATER SO CHEAP? LET ME TELL YOU. THE LEFTOVER 40 MILLION-GALLONS OF BRINE ISN'T WASTE. IT'S A REVENUE SOURCE SCENARIO 1, SELL ALL RAW BRINE AT 2-CENT A GALLON, YOU GET $292 MILLION A YEAR. SCENARIO TWO, SPLIT IT. 20MILLION-GALLONS RAW BRINE AT 2-CENT A GALLON, 146 MILLION A YEAR. THE OTHER 20 MILLION-GALLONS, SEND TO EVAP AND CRYSTALLIZATION FOR SALT RECOVERY, YOU GET 3600 TONS A DAY, $40 A TON OF SALT, THAT'S $52.6 MILLION A YEAR. AFTER SALT, EIGHT TO 10 MILLION-GALLONS OF SUPER CONCENTRATED BRINE, NOW, YOU CAN SELL THAT AT 7-CENT A GALLON, THAT WOULD GIVE YOU 204 TO $255 MILLION A YEAR. SCENARIO 2 TOTALS, 416.3 TO $467.3 MILLION ANNUALLY. SCENARIO 3, ALL 40 MILLION-GALLONS GOES TO SALT RECOVERY. THAT'S 7200 TONS A DAY OF SALT AT $40 A TON, $105.2 MILLION A YEAR. AFTER SALT, YOU'LL HAVE 16 TO 20 MILLION-GALLONS OF SUPER CONCENTRATED BRINE, 7-CENT A GALLON, THAT'S 408 TO $510 MILLION A YEAR. SCENARIO 3 TOTALS, 526.9 TO $628.9 MILLION ANNUALLY. ADD IN, BECAUSE WE STILL HAVEN'T FACTORED IN THE 13.7 MILLION OF CLEAN, CHEAP WATER SALES. SUBTRACT 110 TO MILLION COST. THIS IS YOUR TOTAL'S NET. SCENARIO ONE, 182.7 MILLION A YEAR. SCENARIO 2, 306.3 TO 357.3 MILLION A YEAR. SCENARIO 3, 416.9 TO 518.9 MILLION A YEAR. SALT AND BRINE MARKET PROJECTIONS SHOW FOUR TO 9 PERCENT PRICE INCREASES ANNUALLY. WELL, I DON'T HAVE ANY MORE TIME, BUT THANK YOU. >> Mayor Guajardo: THANK YOU, MR. MERIT. BRAD BARTLESON. >> GOOD AFTERNOON. PRESENTATION TO PUT UP THERE. THERE IT IS. I'LL START. I'M BRAD BARTLESON, DISTRICT 5. AT OUR LAST MEETING COUNCILMAN CANTU ARRIVED AT 1.2 BILLION WAS TOO MUCH FOR 30 MILLION GALLONS. THAT WAS KEEN INSIGHT. COST REDUCTION, PROJECT MANAGEMENT, FOR COMPARING WITH KIEWIT'S CARLSBAD PROJECT, THEY'RE TO BE EXPECTED, 60% OF THE CAPACITY REPLICATING A DESIGN AT A SMALLER SCALE OR WHAT WE CALL A LEARNING CURVE LOWER LABOR RATES IN CORPUS CHRISTI, THEY MENTIONED LEVERAGING THEIR INGLESIDE FACILITY THAT THEY DIDN'T HAVE THERE, NEGLIGIBLE PIPING RELATIVE TO CARLSBAD. THESE FACTORS PUT TOGETHER SUGGEST WE SHOULD BE LOOKING AT HALF OF $1.2 BILLION. WHERE WAS THE COMPETITIVE BID ANALYSIS? I'LL JUST SAY ON THIS SLIDE HERE, JUST BRIEFLY, AGAIN, AS WE LOOK AT OPPORTUNITIES, WE NEED TO LOOK AT CAPEX AND OPEX AND SEE WHY OUR RO STILL STANDS HIGHEST IN THOSE REGARDS. SO WHY HAS THIS BEEN OUR NUMBER ONE PRIORITY? PROCEEDING WITH INNER HARBOR WOULD RESULT IN HIGHER DEBT AND LOWER DEBT RATING, AND WHEN WE SPENT 1.2 BILLION ON IT, THESE OTHER PROJECTS WOULD -- THEY'D HAVE VERY LITTLE STOMACH TO SPEND MORE MONEY, SO THIS IS IMPORTANT REASON NOT TO PROCEED. AND WE HAVE THREE ADDITIONAL PROJECTS THAT I'M AWARE OF THAT WANT WATER, INDUSTRIAL PROJECTS. SO HAVING ONE SOLUTION AND NO MONEY LEFT WOULD BE A HIGH-RISK POSITION. BUT UNDERSTANDING HOW WE GOT HERE IS CRITICAL TO NOT RETURNING HERE. RESIDENTIAL DEMAND HAS NOT INCREASED, AND YET THERE'S BEEN A LOT OF PUSH ON OUR RESIDENTS TO SAVE. BUT STRESS ON OUR WATER SOURCES, AND CORRECT MANAGEMENT OF WATER SOURCES, IS REALLY WHAT GOT US HERE. WE'RE FAR ABOVE, AS YOU CAN SEE FROM THIS FUNDING -- WELL ABOVE THE RATES WE SHOULD BE AT FOR INDUSTRIAL VERSUS OUR CUSTOMER BASE THAT IN OUR RESIDENTIAL BASE HAS NOT INCREASED, YET WE'RE GOING TO GO TO, WHAT, 75% IN THE FUTURE OF INDUSTRIAL USERS? AT THE HEIGHT OF THESE EXPENSES, IF WE PROCEEDED WITH INNER HARBOR, WEED BE AT THE HIGH -- WE'D BE AT THE HIGH END OF DEBT OBLIGATIONS, SIMPLY AMORTIZING BIG MONEY OVER TIME BRING TO MIND THE SAYING RICH PEOPLE ASK HOW MUCH AND POOR PEOPLE ASK HOW MUCH PER MONTH. SO WE'RE IN THIS PREDICAMENT BECAUSE THE CITY OVERSPENT OUR WATER RESOURCES TO INDUSTRY, NOT DUE TO DROUGHT. I'VE GONE THROUGH THIS IN QUITE DETAIL, ADD UP THE RESOURCES AND THERE'S A NUMBER OF ISSUES, BUT THIS GRAPH IS VERY IMPORTANT. IT'S ABOUT WHEN ARE WE RUNNING OUT. AND MANAGEMENT -- AND I DON'T HAVE TIME TO GO THROUGH THIS, BUT I'D CERTAINLY BE WILLING TO SHOW THE ISSUES WITH THIS. SO I'LL LEAVE IT THERE, BECAUSE I'VE GONE TOO LONG. THANK YOU. >> Mayor Guajardo: THANK YOU, MR. BARTLESON. TERRY BROOKS. >> HI. YES, MY NAME IS TERRY BROOKS AND I'M A TENANT AT 1426 PACE PLACE, CLAIRE LANE GARDEN. AND I'VE BEEN A TENANT THERE FOR OVER FOUR YEARS. AND THE BUILDING IS OLD AND THE MAINTENANCE PEOPLE, THEY KEEP COMING AT US SAYING THEY'RE GOING DO THIS WORK, YOU'VE GOT BUSTED PIPES ALL OVER THE PLACE, YOU'VE GOT SEWER WATER RUNNING EVERYWHERE, AND THERE'S NOTHING BEING DONE. AND I'VE BEEN IN THERE FOUR YEARS. AND I'VE GOT A LIST. THE BUILDING, IT'S ABOUT 90 YEARS OLD. ALL THE CAST IRON PIPES UP UNDER THERE, THEY ARE BUSTED AND THEY'RE FLOODING ALL OVER THE AREA. THEN YOU'VE GOT KIDS THERE, THEN INSIDE YOU'VE GOT, WHAT, GAS HEATERS ON THE WALLS. YEAH, CLAIRE LINE GARDEN HAS BEEN OUTDATED AND THOSE PEOPLE -- THEY HAVE TO KNOW SOMETHING, BECAUSE ALL THE CAST IRON PIPES THAT THEY'RE PULLING OUT RIGHT NOW FROM UP UNDER THE PLACE, IT HAS -- THE BUILDING HAS SUNK. CAST IRON PIPING IS NO LONGER IN USE. AND THEY'RE SITTING THERE WON'T DO ANYTHING ABOUT IT. AND THEN I'M SITTING THERE, CAN'T SLEEP AT NIGHT, AND THEN IT'S HOT RIGHT THERE AND NO ONE IS COMING UP TO TRY TO FIX THAT. AND THEN THEY TELL ME I DON'T HAVE A PROBLEM IN MY PLACE. I CAN'T SLEEP, I CAN'T EVEN OPEN MY -- WHAT -- MEDICINE CABINET OR TO BRUSH MY TEETH, RODENTS. AND I CAN'T EVEN LAY IN MY BED, I'VE GOT TO SPRAY, WHAT, INSECT REPELLENT OVER MY FACE TO TRY TO SLEEP AT NIGHT. AND THEN THEY TELL ME I DON'T HAVE A PROBLEM THERE. AND THEN YOU'VE GOT SEWER WATER ALL AROUND AND THEN YOU'VE GOT POWER LINES RUNNING DOWN. EVERY MORNING I SIT ON MY PORCH AND TRY TO EXERCISE. THE POWER LINE IS FALLING. MY CHURCH MEMBERS CAME AND TOOK PICTURES. YOU SEE THE POWER LINE, BUT THAT DON'T SHOW THE REAL PROBLEM UNTIL YOU GO OVER THERE AND SEE IT. CHANNEL 6 JUST DID A REPORT ACROSS THE STREET ON THE SENIOR CITIZEN OVER THERE IN CLAIRE LINE GARDEN WHERE THEY CAN'T EVEN -- THEY'VE GOT ELEVATORS, AND THEY HAVEN'T WORKED IN YEARS AND YEARS AND THEY CAN'T EVEN WALK OR CARRY OR -- THE GROCERIES UPSTAIRS. AND THEN THEY SPEND MONEY ON A LOCK SYSTEM THAT DON'T EVEN WORK. DIDN'T MENTION NOTHING TO THEM AND THEN YOU HAVE TO USE YOUR LAST FOUR OF YOUR SOCIAL SECURITY NUMBER TO GET IN THE BUILDING. MOST OF US ARE SENIOR CITIZENS OR HAVE DISABILITY, WE CAN'T REMEMBER OUR LAST FOUR. AND THEN THEY USE ALL THAT MONEY ON THAT RIGHT THERE AND THEN THEY DON'T COME AND FIX ANYTHING IN THE APARTMENTS? GAS LEAKING EVERYWHERE AND WIND JUST BLOWING IN AND OUT, THE WINDOWS GET STUCK. IT'S JUST A MESS. AND NOW THEY WANT TO -- AND THEN PIPES BUSTING EVERYWHERE. >> Mayor Guajardo: YEAH. MR. BROOKS, I DID RECEIVE YOUR E-MAIL. I THINK YOU SENT US AN E-MAIL, AND I HAVE MY STAFF -- I HAD TOLD THEM TO START LOOKING INTO THIS. SO WE'LL DEFINITELY ADDRESS -- >> THANK YOU. >> Mayor Guajardo: THANK YOU, SIR. COUNCILMAN? >> Hernandez: PETER, CAN YOU ASK JENNIFER BUXTON TO TAKE A LOOK AT THIS PROPERTY AND SEE IF IT IS ONE OF THE TAX ABATED PROPERTIES FROM THE HOUSING AUTHORITY OR ANY OF THOSE THINGS? NAIMAYBE WE CAN WORK SOMETHING OUT ALONG THOSE LINES. ALSO MAYBE POSSIBLY HAVE A GAS DEPARTMENT DO A QUICK CHECK OF IT FOR -- HE MENTIONED GAS LEAKS. >> Zanoni: OKAY. WE CAN DO THAT, YES, SIR. >> Mayor Guajardo: AND IT'S GOING TO THE BOARD, SO THEY CAN -- I THINK THEY WERE JUST DOING A TOUR -- THE HOUSING AUTHORITY BOARD, BUT THIS WAS DEFINITELY GOING TO BE -- OR IF IT HADN'T ALREADY BEEN SENT IN. OKAY. DAN MCQUEEN? >> DAN MCQUEEN, CORPUS CHRISTI. MAYOR, COUNCIL, STAFF, IT IS REALLY GOOD TO SEE YOU GUYS. I FIRST WANT TO START WITH SAYING, I THINK YOU'VE CREATED THE MOST OPTIMISTIC COUNCIL I'VE EVER SEEN. I SEE SO MUCH PROMISE AND OPPORTUNITY AND I SEE SOME DECISION-MAKERS. I'VE GOT A BOOK COMING AROUND AND I'VE GOT STATEMENTS THAT I WANT TO MAKE ABOUT THE BUDGET AS WE CONTINUE TO LOOK AT THE PROBLEMS ECONOMICALLY, I HEAR DESAL AND WE SAY WITHOUT THE WATER, WE DON'T HAVE BUSINESS. AND I WANT TO TELL YOU, I THINK WE HAVE TO LOOK IN DIFFERENT DIRECTIONS. IF YOU LOOK AT THE HISTORY OF CORPUS CHRISTI, WE BUILT THE CITY ON WORLD WAR II, WE BUILT IT ON MILITARY TRAINING, WE BUILT IT ON THE PORT, WE BUILT IT ON THE PETROCHEMICAL INDUSTRY, WE BUILT IT ON SEVERAL ASPECTS. I THINK THIS IS THE COUNCIL THAT NEEDS TO START THINKING ABOUT TOMORROW'S FUTURE. AND I SAY THAT IN A SENSE, YOU KNOW, AS A FORMER AIR FORCE ONE LEAD ENGINEER, THAT'S A $5.2 BILLION PROGRAM THAT'S BEHIND BUDGET AND OVERSCHEDULE RIGHT NOW, RIGHT? AND SO WE'RE LOOKING AT WATER AND WE'RE LOOKING AT, YOU KNOW, A LITTLE MONEY FOR HOW WE'RE GOING TO TAKE CARE OF OUR WATER FOR INDUSTRY, BUT I THINK EVERYBODY'S ALREADY SEEN THAT -- YOU KNOW, THE DIRECTION WE'RE GOING IS THE WRONG DIRECTION. WE NEED TO REGROUP. WE NEED TO DO A LITTLE TWIST. A COUPLE OF THINGS THAT I'M LOOKING AT IS THE EDC, THE CHAMBER OF COMMERCE, AND THIS WAS INTRODUCED -- AND EVEN THE SOUTH TEXAS MILITARY TASK FORCE, I DON'T THINK ANY OF THEM WILL BE UP IN AUSTIN NEXT WEEK FOR FED SUPER NOVA, WHICH IS THE BIGGEST GET-TOGETHER OF TECH DUAL-USE MILITARY OPERATION NEW STARTUP BUSINESSES, AND I WOULD ENTERTAIN THAT YOU GUYS THINK ABOUT GOING THERE, MAYBE SNAG A BUSINESS OR TWO AND SAY, HEY, LET'S COME DOWN TO CORPUS CHRISTI. AND I BRING THAT UP BECAUSE OTHER CITIES UTILIZE THE LIBRARY AS AN ECONOMIC STIMULUS, LAUNCH SA IS OUT OF THE LIBRARY IN SAN ANTONIO. AND WE'RE ABOUT CHANGING THE FUNDING FOR OUR LIBRARIES RIGHT NOW. WHEN I GAVE YOU A PAPER THERE AS WELL, I'D LIKE YOU TO READ THROUGH IT, IF YOU HAVE THE OPPORTUNITY. YOU'RE FAMILIAR WITH SAN ANTONIO, AND YOU'RE FAMILIAR WITH GEEK DOCUMENT, DOM, AND I SAY THAT BECAUSE YEARS AGO WE BUILT GEEKDOM AROUND ECONOMIC DEVELOPMENT. SOME OF WHAT I'M TRYING TO DO IN CORPUS CHRISTI I'VE BEEN BRINGING TO AUSTIN AND THE SAN ANTONIO AND THE TECH FOLKS AND THE AI FOLKS, BUT I NEED TO HAVE THE INFRASTRUCTURE. I NEED TO HAVE YOU GUYS THINKING OF TOMORROW'S BUSINESS MODELS, AND IF I CAN HELP IN ANY WAY, BY ALL MEANS. BE GLAD TO GIVE YOU A TOUR UP AT CAPITAL FACTORY IN AUSTIN NEXT WEEK AT FED SUPER NOVA AS WELL. THANK YOU SO MUCH. >> Mayor Guajardo: THANK YOU. SUZIE SALDAÑA. >> SUZIE SALDAÑA, CORPUS CHRISTI, TEXAS. I WANT TO REMIND YOU OF OCEAN VIEW GROUP. YOU KNOW WHAT? YOU'VE HEARD ABOUT SOME OF THE THINGS THAT THEY'RE DOING, BUT WHAT YOU HAVEN'T HEARD IS FROM THE REGULAR TAXPAYERS THAT WORK THERE. YOU HAVE PEOPLE THAT HAVE BEEN WORKING AT THE AMERICAN BANK CENTER FOR YEARS AND YEARS AND YEARS. AND THEY TELL ME THAT WHEN THIS GROUP CAME IN, THEY HAVE NOT ONCE -- NOT ONCE HAD A STAFF MEETING WITH ANY OF THEIR STAFF, WHETHER SERVERS, WHETHER PEOPLE THAT CLEAN, WHETHER PEOPLE THAT DO ANYTHING, IT'S THEIR WAY OR THE HIGHWAY. AND THEY'RE TRYING TO GET RID OF THEM TO GET OTHER PEOPLE IN. THIS IS RIDICULOUS. YOU HAVE TO DO SOMETHING ABOUT IT. I AGREE WITH COUNCILMAN CANTU THAT YOU SHOULD DO AN AUDIT AND YOU SHOULD DO SOMETHING ABOUT IT. YOU'VE GOT A LOT OF THINGS GOING ON. YOUR ISSUES ON THE WATER, LET ME TELL YOU. TOTALLY DIVIDED THAT YOU ARE, THERE ARE PEOPLE ON BOTH SIDES THAT NEED TO BE TAKING A LOOK AT. IF YOU SIT THERE AND YOU'RE MAKING POLITICAL MONEY FOR YOUR CAMPAIGNS, YOU'RE WRONG TO BE SITTING THERE. IF YOU'RE MAKING POLITICAL MONEY OR BEING PAID FOR DOING SOMETHING ABOUT WATER, THEN YOU SHOULD BE SITTING IN THOSE CHAIRS. IF THERE'S ANY ONE THAT THAT IS HAPPENING TO, YOU DON'T NEED A RECALL, YOU NEED TO RESIGN. YOU DON'T NEED A RECALL, YOU NEED TO GET SOME CONSCIENCE AND GET OUT OF THERE. IT IS RIDICULOUS OF SOME TIMES THAT YOU BRING FORWARD THINGS THAT ARE GOING TO HURT THE TAX MTAXPAYER, ARE GOING TO HURT THE CITIZENS OF THIS COMMUNITY, AND IT'S TIME YOU GET OUT. IT'S TIME THAT YOU STOP HELPING YOUR FRIENDS AND STOP THINKING ABOUT THE TAXPAYERS THAT YOU PUT YOU THOSE CHAIRS WITH YOUR NONTRUTHS. SO THINK ABOUT IT, THINK ABOUT WHAT'S HAPPENING, BECAUSE THE PROOF IS THERE, AND I WILL CERTAINLY EXPOSE IT. THANK YOU. >> Mayor Guajardo: THANK YOU, MS. SALDAÑA. ELIDA VASQUEZ, ELIDA VASQUEZ? AMANDA GUERRA? AMANDA GUERRA? MILES AMILEMIRIAM GUERRA RATCHETY? MY DAUGHTER WANTED -- HAD A WRITTEN SOMETHING FOR YOU. IS IT OKAY IF SHE READS ON MY BEHALF. >> Mayor Guajardo: YES, OF COURSE. >> MY NAME IS FATIMA, I RESIDE IN DISTRICT ONE. THANK YOU FOR THE OPPORTUNITY FOR ALLOWING ME TO SPEAK FOR YOU TODAY. I ACKNOWLEDGE THAT YOUR JOB ISN'T EASY WITH THE DIFFICULT DECISIONS SUCH AS CHOOSING NOT TO DEFUND OUR PUBLIC LIBRARIES. BUT THERE IS CRITICAL ISSUES THAT I SIMPLY CANNOT IGNORE. OUR PRECIOUS WATER SUPPLY AND OUR ECOSYSTEMS. ARE WE IN A DROUGHT? YES. DO WE NEED TO FIND A SOLUTION? ABSOLUTELY. BUT YOU CANNOT PUT A PRICE TAG ON OUR ECOSYSTEMS. EVEN IF THE COST OF BUILDING THE DESALINATION PLANT WERE BUT A FEW HUNDREDS OF DOLLARS, OR EVEN FOR FREE, I WOULD STILL URGE YOU NOT TO DO IT BECAUSE YOU ARE TAKING A RISK OF POSSIBLY DESTROYING OUR PRECIOUS ECOSYSTEM AND THE DAMAGE CANNOT BE UNDONE. WHETHER IT BE BAFFIN BAY, NUECES BAY, HARBOR ISLAND, ANY OF OUR WATER FOR THAT MATTER, I RESPECTFULLYEN TREAT YOU, LEAVE OUR WATER ALONE IN ITS NATURAL STATE. ENOUGH DAMAGE HAS ALREADY BEEN DONE. THE AIR WE BREATHE IS POLLUTED, OUR WATER IS POLLUTED, SO PLEASE LEAVE OUR WATER ALONE TO HEAL. LET US LOOK TO THE OTHER SAFER ALTERNATIVES TO THE DROUGHT. AND CONCERNING OUR DROUGHT, WHY ARE WE IN A DROUGHT? WE KNOW THAT MILLIONS OF GALLONS OF OUR WATER GO TO THE REFINERIES AND OIL INDUSTRIES EACH DAY. I UNDERSTAND THAT THESE REFINERIES AND OIL COMPANIES PROVIDE JOBS FOR PEOPLE, AND THIS IS GOOD FOR OUR ECONOMY, BUT IN THE END, WE CANNOT BREATHE MONEY. WE CANNOT DRINK MONEY. SO CONSIDER PROTECTING AND PRESERVING OUR NATURAL BEAUTY AND RESOURCES FOR THE SAKE OF OUR FUTURE. THANK YOU FOR YOUR TIME AND GOD BLESS YOU AND YOUR FAMILIES. >> Mayor Guajardo: THANK YOU. GEORGE JOHNSON. I'M SORRY, WITH DECORUM, THERE'S NO APPLAUSING. I UNDERSTAND YOUR PASSION, AND THAT WAS VERY SWEET OF HER, BUT PLEASE DO NOT APPLAUSE. GEORGE JOHNSON. IS GEORGE JOHNSON WITH US? MICHELLE MARTONE? MICHELLE MARTONE. CHRIS TORRES. >> GOOD AFTERNOON, CHRISTOPHER TORRES, CORPUS CHRISTI, TEXAS. I WORK LOCALLY AS A SOFTWARE ENGINEER. FIRST, I JUST WANTED TO COMPLIMENT CITY COUNCIL, ESPECIALLY COUNCILWOMAN PAXSON AND COUNCILMAN CANTU ON THEIR EFFORTS TO IMPROVE PUBLIC COMMENT. I REALLY APPRECIATE THE TIME, CHANGING IT TO 5:30, ALLOW MORE PEOPLE TO SHOW UP AND TALK ABOUT CITY-RELATED MATTERS. TODAY I JUST WANT TO SHOW A COUPLE SLIDES FOR SOME SOLUTIONS TO SOME I.T. RELATED ISSUES THAT HAVE BEEN BROUGHT UP BY THE COUNCILMEMBERS AND BY SOME CITIZENS. SO THE FIRST SLIDE SHOWING A PUBLIC COMMENT BUTTON, CURRENTLY YOU HAVE TO NAVIGATE THROUGH THREE PAGES IN ORDER TO GET TO THE PUBLIC COMMENT WEBSITE. SO IT WOULD JUST BE A BUTTON THAT WOULD BE ON THE HOME PAGE OF THE CORPUS CHRISTI WEBSITE THAT WOULD TAKE YOU RIGHT TO THE PUBLIC COMMENT SIGNUP PAGE. THE SECOND SLIDE IS ACTUALLY A FEATURE MENTIONED IN THE CODE, BUT IT'S NOT IMPLEMENTED. IT'S GOING TO BE A COUNTDOWN FOR THE TIME THAT YOU CAN SIGN UP IF THE PUBLIC COMMENT TIME IS CURRENTLY CLOSED. THE THIRD SLIDE, IT WAS MENTIONED BY THE CITY SECRETARY, THAT THE DATA COMING FROM THE FORM FOR PUBLIC COMMENT HAS TO BE MANUALLY FILTERED. THAT'S WHY LIKE THE TIME WAS SET FOR WHEN THE CUTOFF TIME IS IN THE CODE. IT LOOKS LIKE THEY USE DROP FORUM IN ORDER TO COLLECT THE DATA FROM EVERYBODY THAT SIGNS UP FOR PUBLIC COMMENT. AND THERE'S ACTUALLY A LOT OF FILTERING OPTIONS ON JOT FORUM THAT YOU CAN PULL. IF YOU NEED CUSTOM FILTERS AND STUFF, JOT FORUM PROVIDES AN API. SO THEY CAN MAKE WHATEVER FILTERS YOU NEED. THE LAST SLIDE HERE IS ABOUT THE E-MAIL QU QUARANTINES. THERE'S A COUPLE OF OPTIONS TO FIX A PROBLEM. THE FIRST ONE WOULD BE TO ADDRESS THE QUARANTINE PARAMETERS. THEY'RE JUST MICROSOFT SETTINGS, AND YOU'D HAVE TO CHANGE THEM TO ENSURE THAT THE LEGITIMATE E-MAILS ARE ACTUALLY DELIVERED TO THE COUNCILMEMBERS. THE SECOND ONE, IT WOULD BE MORE LONG-TERM SOLUTION. IT WOULD BE CREATING A DEDICATED CONTACT OR COUNCILMEMBER PAGE IN ORDER TO E-MAIL YOUR COUNCILMEMBER AND YOU CAN INTEGRATE MICROSOFT FORUMS IN ORDER TO GET A RECEIPT WHENEVER AN E-MAIL'S SUCCESSFULLY SENT. I REALLY WANTED TO PRESENT THIS TODAY SINCE THE CORPUS CHRISTI I.T. TEAM ISN'T PUBLICLY -- YOU CAN'T TALK TO THEM, SO IF YOU'D LIKE ANY OF THE CHANGES, MAYBE YOU CAN SEND THE PRESENTATION TO THEM. THE SLIDES FOLLOWING THIS HAVE ALL THE CODE FOR THE SUGGESTIONS I MADE. WITH THE LAST COUPLE SECONDS, I REALLY THINK THE CITY SHOULD RECONSIDER TAKING A LOOK AT OTHER WAYS TO PREVENT EVAPORATION LOSS IN THE WATERSHED. IT WAS REPORTED THAT WE LOSE ABOUT 140 MILLION-GALLONS A DAY FROM THE WATERSHED. I KNOW THERE'S A COUPLE DIFFERENT OPTIONS TO PREVENT THAT EVAPORATION. BUT, YEAH, THANK YOU. HAVE A NICE DAY. >> Mayor Guajardo: THANK YOU, MR. TORRES. TAMMY CASTILLO. COUNCILMAN CANTU? >> Cantu: PETER, IS THERE ANY WAY WE COULD PUT THE PUBLIC COMMENT ON THE HOME PAGE, BECAUSE I DO GET A LOT OF PHONE CALLS, THEY CAN'T LOCATE IT. THEY HAVE TO GO THROUGH ALL THESE DIFFERENT PAGES AND STUFF. >> Zanoni: YEAH. >> Cantu: IS THERE ANYTHING POSSIBLE WE COULD PUT ON THE HOME PAGE. >> Zanoni: I THINK THERE IS. I'LL WORK WITH REBECCA AND OUR COMMUNICATIONS DEPARTMENT AND I.T. >> Cantu: THANK YOU. >> Zanoni: YES, SIR. >> Mayor Guajardo: OKAY. TAMMY CASTILLO. BRYAN MENARD, ISABEL AR. ISABE ISABEL ARAIZA? >> >> RACHEL CABALLERO, D1, I HAVE HANDED OUT A MEMORANDUM OF UNDERSTANDING, AN MOU, BETWEEN THE CITY OF CORPUS CHRISTI AND THE NUECES COUNTY WATER CONTROL IMPROVEMENT DISTRICT NUMBER 3 THAT WAS ENTERED INTO -- OR MAYBE IT WASN'T ENTERED INTO, I DON'T HAVE THE SIGNED COPY OF JUNE 2025, A MEMORANDUM OF UNDERSTANDING AS YOU ALL KNOW MEANS THAT THIS IS SOMETHING THAT, YOU KNOW, WE'RE GOING TO BE LOOKING INTO AND POSSIBLY DOING. THIS MOU IS SELLING 3 MILLION-GALLONS OF WATER A DAY -- WOULD BE SELLING 3 MILLION-GALLONS OF WATER A DAY TO THE NUECES COUNTY WATER DISTRICT NUMBER 3 IN ROBSTOWN, TEXAS. I'M HERE TO ASK THAT WE BE REASONABLE AND WE PUT A MORATORIUM ON SELLING WATER UNTIL OUR COMMUNITY CAN COME OUT OF WATER RESTRICTIONS. I HAVE TO ASSUME THAT THIS WATER THAT'S BEING SOLD AS OF TWO MONTHS AGO IS EITHER FROM THE NEWELLS OR THE INCREASE TO MARY RHODES. AND I CAN'T FOR THE LIFE OF ME UNDERSTAND WHY WE WOULD CONTINUE TO SELL WATER WHEN OUR COMMUNITY HAS BEEN IN DROUGHT RESTRICTIONS FOR FOUR YEARS. I MEAN, THIS IS -- THIS IS MADNESS. WE DO NOT EXPECT THE CITY TO STOP DOING NORMAL BUSINESS, BUT WE, THE COMMUNITY, NEEDS -- NEED TO COME OUT OF DROUGHT RESTRICTIONS BEFORE ANOTHER DROP OF WATER IS SOLD TO OTHER MUNICIPALITIES OR INDUSTRY. SO I AM ASKING THIS COUNCIL TO PLEASE CONSIDER TAKING A MORATORIUM ON SELLING ANY OF THE NEW WATER THAT WE'RE GETTING UNTIL OUR COMMUNITY IS OUT OF DROUGHT RESTRICTIONS. THANK YOU. >> Mayor Guajardo: THANK YOU, MRS. CABALLERO. COUNCILMAN HERNANDEZ? >> Hernandez: I WANT TO DO A STATEMENT OF FACT HERE WITH REGARDS TO THIS. THIS IS AS A RESULT OF THE WATER WELLS THAT HAD HIGHER TDS THAN WAS BELIEVED -- THAT WE ORIGINALLY THOUGHT THAT WAS PUT IN THE NUECES RIVER. THERE WAS A POSSIBILITY OF INTERFERING WITH THE ABILITY OF THE WATER DISTRICT NUMBER 3, WITH TREATING THAT WATER AND BEING ABLE TO UTILIZE IT. SO THIS WAS AN EVENT IN THE CASE OF THE FACT THAT THEY WOULD NOT BE ABLE TO USE THAT WATER FROM THE NUECES RIVER. >> Zanoni: RIGHT. >> Hernandez: THIS WOULD GIVE THEM AN OPTION TO STILL PROVIDE WATER TO THEIR SYSTEM. IT WOULD NOT BE TO PROVIDE THEM WATER FULL-TIME. IT'S JUST IN CASE OF EMERGENCY DUE TO OUR ACTIONS WITH THE WATER WELLS ON THE NUECES RIVER. >> Zanoni: YEAH, THAT'S CORRECT COUNCILMAN. IT WOULD BE -- INSTEAD OF THEM TAKING 3 MILLION OUT OF THE RIVER LIKE THEY HAVE THE RIGHT -- AS THEY HAVE A RIGHT TO DO SO WITH 100 YEAR-OLD WATER RIGHT OPTIONS, INSTEAD OF TAKING 3 MILLION OUT OF THE WATER, WE WOULD PROVIDE THEM 3 MILLION, BECAUSE WE'RE PUTTING MORE TDS-BASED WATER IN THE RIVER, SO IT'S BEING A FRIENDLY NEIGHBOR, SAYING IF WE'RE GOING TO PUT OUR WELL WATER IN THE RIVER AND IT COULD IMPACT YOUR WATER QUALITY, DON'T TAKE ANY OUT, WE'LL GIVE YOU 3 MILLION FROM OWENS STEVENS. >> Hernandez: RIGHT. >> Zanoni: IT'S A GOOD NEIGHBOR PROJECT. AND IT'S ONLY FOR AN EMERGENCY, LIKE YOU'RE SAYING. >> Hernandez: RIGHT. I SAY THAT BECAUSE, YOU KNOW, WE COULD VERY WELL IMPACT THEIR ABILITY TO TREAT WATER. >> Zanoni: RIGHT. >> Hernandez: AND THIS IS NECESSARY IN ORDER TO MAKE SURE THAT THEY -- >> Zanoni: I DON'T HAVE A COPY OF THAT? IS THAT SIGNED? I THINK WE TALKED TO COUNCIL ABOUT IT. >> Mayor Guajardo: THIS ONE'S NOT SIGNED. >> Zanoni: WE TALKED TO COUNCIL ABOUT IT GENERALLY. THERE'S GOING TO BE A CONTRACT THAT WOULD COME TO CITY COUNCIL. THE STAFF CAN'T ENTER INTO THIS WITHOUT COUNCIL APPROVAL, SO THAT WILL COME BACK TO COUNCIL. >> Mayor Guajardo: THANK YOU. >> Hernandez: THANK YOU. >> Mayor Guajardo: MARK MÜNSTER. >> MARK MURC MÜNSTER, DISTRICT ONE. I'M HERE TO CHALLENGE TODAY THAT INDUSTRY IS NOT PAYING THEIR FAIR SHARE, WHICH IS SAID A LOT OF THE TIMES IN THE WATER DISCUSSION AND FIRST I WOULD LIKE TO SAY FIRST THAT THE CONCERNS ARE MUCH MORE THAN FINANCIAL REGARDING THE INNER HARBOR DESALINATION PROJECT, HILLCREST BAY, TOURISM NORTH BEACH, SELF-EMPLOYED PEOPLE ON NORTH BEACH, ET CETERA. I'M ALSO A TAX PROFESSIONAL FOR MORE THAN FOUR YEARS, I'M CERTIFIED BY THE IRS. IN DISCUSSION ON THIS, IDAS WERE BROUGHT UP HOW THEY COULD COME IN AND HELP SUBSIDIZE WATER RATES WITH RESIDENTS. WITH CHENIERE GULF COAST VENTURES, 50 MILLION WOULD BE THE AMOUNT FROM THESE COMPANIES AND THEIR IDAS AND FIRST WHEN I HEAR THE THREE COMPANIES I THINK OF TCEQ VIOLATIONS FROM CHENIERE, THE FLARING, AROUND 2019 THERE WAS A LOT OF NEWS ABOUT BLACK DUST GOING INTO RESIDENTS THAT WAS IMPACTING THEIR PERSONAL PROPERTY, VEHICLES AND HOMES. SO 50 MILLION FROM THOSE THREE COMPANIES IN 2031. AND I KNOW RIGHT NOW THAT WE HAVE AROUND 70 INDUSTRIAL AGREEMENTS AND OUR CURRENT REVENUE IS 25 TO 30 MILLION. SO THAT MAKES ME QUESTION THE MATH OF HOW THAT ADDS UP, THREE FROM 50,000,030,000,000 FROM 70. AND I KNOW THEY DID INCREASE FROM ( 74% TO 62% IN THE INDUSTRIAL DISTRICT AGREEMENTS BUT THAT WASN'T THE FULL PICTURE, BECAUSE THAT'S ONLY FOR PREEXISTING PROPERTY AFTER THEIR FIRST FOUR YEARS. AND SO THE REASON WHY THE IDAS ARE NOT FAIR IS BECAUSE ON THEIR FACILITIES, THEY HAVE 0 PERCENT TAX RATE ON THE INDUSTRIAL DISTRICT AGREEMENTS FOR THE FIRST FOUR YEARS, AND THIS IS THE MAJOR ASSET OF THESE COMPANIES. THEIR FACILITIES, THEIR PERMANENT FOUNDATIONS FOR EQUIPMENT, WAREHOUSES AND OFFICE BUILDINGS. 0 PERCENT FOR THE FIRST FOUR YEARS AND THEN THAT 74% COMES IN, AND THEN 0 PERCENT TAX RATE PERMANENTLY FOR MACHINERY EQUIPMENT TOOLS POLLUTION CONTROL EQUIPMENT, WHICH COULD BE ANYTHING RELATED TO WHATEVER THEY CONSIDER POLLUTION CONTROL AND DESPITE ALL THIS, THEY CAN STILL A APPEAL THEIR VALUATION EVERY YEAR, THAT'S WHY THE REVENUE CAN BE LESS THAN WHAT'S PROPOSED ON THE JUDGMENT AND THEIR AGREEMENTS CAN RENEW. LAST SEPTEMBER NOT EVERYONE ON THIS COUNCIL WAS HERE WHEN THEY RENEWED THE 15-YEAR AGREEMENT. THAT'S ALSO THE THING, THESE ARE 15-YEAR DEALS. YEAH, IT'S UNFAIR AND VERY PARENT OF THE PICTURE OF OUR -- PART OF THE PICTURE OF OUR WATER SITUATION. THESE ARE THE SAME COMPANIES THAT USE WATER AND PUT US IN THIS SIS WEIGHS AND THEY GET THESE SIGNIFICANT TAX BREAKS AND DEALS. I WISH THE CITY WOULD BE TRANSPARENT ABOUT WHAT WE COULD POTENTIALLY BE RECEIVING WITHOUT THESE, SO THANK YOU. >> Mayor Guajardo: THANK YOU, MR. MÜNSTER. MARILYNNA >> MARY ELENA GARZA, DISTRICT ONE. I'M HERE TO TALK ON TWO DIFFERENT ITEMS. THE FIRST ONE IS YOU STILL HAVE GLARING ISSUES WITH YOUR PUBLIC COMMENT. WHEN THE MAYOR DOES NOT CALL FOR PUBLIC COMMENT AND THE SECRETARY HAS TO REMIND YOU, THAT IS A FORM OF INTIMIDATION. YOU NEED TO CALL FOR PUBLIC COMMENT. YOU'RE LEAVING YOUR BUTT KIND OF OPEN FOR OPEN MEETING VIOLATIONS. IF YOU HAVE PUBLIC COMMENT BEFORE THE AGENDA, LIKE YOU DID BEFORE, THIS WASN'T AN ISSUE BECAUSE WE WERE ALLOWED TO ADDRESS COUNCIL BEFORE THE AGENDA ITEM. SO IT'S SUPER IMPORTANT THAT YOU REMEMBER TO CALL FOR PUBLIC COMMENT. WE CHANGED PUBLIC COMMENT AND YOU GOT TO FOLLOW THE NEW RULES YOU HAVE AND I'M GOING TO BE NIT-PICKY ON IT. BEFORE THE AGENDA, BEFORE MOTIONS ARE MADE, CALL FOR PUBLIC COMMENT. PUT A STICKY NOTE IN THERE SOMEWHERE. NUMBER TWO, WHAT ARE WE DOING WITH OUR LIBRARIES? WE'RE CLOSING THEM. WE'RE CLOSING THEM. WE'RE NOT ALLOCATING HOURS ANYWHERE ELSE. WE KNEW THAT GARCIA WAS GOING TO CLOSE. THERE WASN'T MONEY IN THE BUDGET. PETER WAS ABLE TO FIND SOME MONEY TO EXTEND IT TO THE END OF THIS YEAR. IT'S GOING TO CLOSE. NOW WE'RE CLOSING HART. WE'RE NOT CLOSING IT, WE'RE REDUCING HOURS. QUIT LYING. WE KNOW ABOUT THE BAD CONTRACT YOU MADE IN THE '80s WITH CCISD AND WHY WE HAVE TO KICK OUT THE TAXPAYERS WHO PAID FOR THE BUILDING OUT OF OUR BUILDINGS. I'M GETTING CALLS FROM PEOPLE WHO DO HOMESCHOOLING AND THEY DON'T HAVE ANYWHERE TO GO NOW. THEY USED TO GO TO HART AND NOW THE HOURS ARE FUNNY. WHAT'S GOING ON? WELL, THEY'RE GOING TO CLOSE HART. EVEN IF WE HAD A BUDGET THAT ALLOCATED MONEY FOR OUR LIBRARIES AND WE HAVE THE MONEY AND WE HAVE THE PROPERTY, WHAT? WE'LL SEE A LIBRARY IN TWO YEARS? THREE YEARS? WE DON'T HAVE THE MONEY AND WE DON'T HAVE A PLAN THAT'S PUTTING LIBRARIES AND OUR TAXPAYERS FIRST. WHAT I FIND FUNNY IS THAT DISTRICT 4 AND DISTRICT 5 PAY THE MOST IN PROPERTY TAXES. YOU GUYS DON'T HAVE A LIBRARY. HOW IS THAT FAIR? THERE IS NO LIBRARY OUT THERE AND THE TWO LIBRARIES THAT ARE OUT THERE THAT ARE CLOSE ENOUGH FOR THOSE PEOPLE TO USE ARE GOING AWAY. YOUR LIBRARIES ARE GOING AWAY AND THERE IS NO PLAN. WE HAVE AN ADVISORY BOARD THAT'S MORE WORRIED ABOUT WHAT BOOKS ARE ON THE SHELVES THAN KEEPING THE DOORS OPEN FOR THE TAXPAYERS. WHAT ARE THOSE FAMILIES SUPPOSED TO DO THAT DEPEND ON THOSE LIBRARIES TO HOMESCHOOL THEIR KIDS? THEY'RE GOING TO DRIVE ALL THE WAY DOWN HERE TO LA RETAMA AND WE'RE NOT EVEN EXTENDING THE HOURS AT LA RETAMA. THEY ARE CLOSED ON MONDAY. IT'S LIKE EVERY MONTH I GOT TO CHECK WHAT HOURS OF OPERATION ARE AT THE LIBRARY. HOW IS THAT FAIR? NO PLAN. NO LIBRARIES. GET IT TOGETHER, GUYS. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: WE DO HAVE A BOND PROJECT FOR A NEW LIBRARY TO REPLACE THE GARCIA LIBRARY. IT'S NOT MOVING AS FAST AS I WOULD LIKE BUT WE DO HAVE A DESIGN FOR IT. I DIDN'T EXPECT THE HART LIBRARY TO BE IN THE SAME SITUATION BUT APPARENTLY IT IS. MAYBE WE LOOK AT POSSIBLY USING THE SAME DESIGN FOR HAVING A LIBRARY. I DON'T THINK IT WILL BE THE SAME FOR HART BECAUSE YOU DO HAVE THE SENIOR CENTER THAT'S OVER AT PARKER PARK. SO I DON'T KNOW. MAYBE WE COULD INCLUDE SOMETHING ALONG THOSE LINES. I KNEW THIS WAS PROBABLY -- I KNEW WHAT WAS HAPPENING WITH CCISD. I DIDN'T EXPECT IT WITH FLOUR BLUFF. >> Zanoni: WE DO HAVE DESIGN. IN FACT, I THINK IT'S NEXT WEEK OR THE WEEK AFTER AT CITY COUNCIL WE'RE GOING TO BRING THE DESIGN CONTRACTOR. THE LAND IS THE ISSUE. WE HAD AN INITIAL AGREEMENT WITH CCISD TO SWAP SOME PROPERTY, BUT THAT'S FALLEN -- THAT'S NOT GOING TO MATERIALIZE RIGHT NOW. BUT WE'RE GOING TO BRING THE DESIGNER FORWARD FOR COUNCIL CONSIDERATION. THE FLOUR BLUFF LIBRARY IS FLOUR BLUFF ISD, NOT CCISD, AND THAT ONE WE NEED LAND. WE NEED DESIGN. WE NEED CONSTRUCTION MONEY SO THERE'S NO MONEY FOR ANY OF THAT RIGHT NOW. WHAT WE DID DO IS WORK WITH FLOUR BLUFF TO MAINTAIN HOURS FOR THE FAMILIES IN THE EVENING FROM 5:00 TO 8:00 MONDAY THROUGH FRIDAY WITH THE EXCEPTION OF TUESDAY, IT'S ALMOST A FULL DAY. IT'S LIKE 8:00 TO 5:00 THAT THE PARENTS CAN USE THE LIBRARY AND THE STUDENTS FROM THE SCHOOL WON'T BE IN THE LIBRARY THAT DAY. AND SATURDAY IT'S OPEN ALL DAY FOR THE COMMUNITY FAMILIES. SO WE DO, AS MS. GARZA SAID, WE HAVE AN ISSUE THAT WE NEED TO FUND MORE LIBRARIES. AND IT COMES WITH, YOU KNOW, THE NEED TO RAISE REVENUE OR GENERATE REVENUE TO BE ABLE TO DO THAT. SO WE ARE ADDRESSING THE ISSUE IN CITY COUNCIL DISTRICT 5 WITH THIS BOND PROGRAM. THAT'S JUST A DESIGN. THEN WE NEED, HOPEFULLY IN THE NEXT BOND PROGRAM, THE CONSTRUCTION MONEY. AND WE NEED THE SAME THING FOR DISTRICT 4. MAYBE EVEN THE ISLAND. YEAH. >> Mayor Guajardo: THANK YOU, PETER. DAVID CALLING. >> GOOD AFTERNOON, MAYOR, CITY COUNCIL MEMBERS, STAFF MEMBERS. THANK YOU FOR ALL THE WORK YOU GUYS DO. I KNOW YOU DO A LOT. AND I FRANKLY HATE TO BE IN YOUR SPOT. BUT -- >> City Secretary: CAN YOU SAY YOUR NAME AND CITY? >> I WANTED TO TALK ABOUT THE INNER HARBOR DESALINATION PLANT. >> City Secretary: SIR, CAN YOU SAY YOUR NAME AND CITY, FOR THE RECORD? >> DAVID COWLING, CORPUS CHRISTI TEXAS. I THOUGHT EVERYBODY KNEW ME. BUT AT ANY RATE, I MOVED DOWN HERE ABOUT 30 YEARS AGO WITH MY WIFE, MID '90s. WE WERE HAVING THE SAME DISCUSSION: WATER. AND THEY WERE TRYING TO GET THIS PIPELINE APPROVED GOING UP TO LAKE TEXANA. A RIDICULOUS THOUGHT THAT IS NOW THE MARY RHODES PIPELINE. AND I WOULD SAY AT THAT TIME MARY RHODES MIGHT HAVE BEEN THE MOST DISLIKED LADY IN THE CITY. AND NOW SHE SEEMS TO BE A BIT OF A HERO. SO I THINK THAT'S KIND OF WHAT WE'RE LOOKING AT HERE IS WE NEED TO BE LOOKING TO THE FUTURE, JUST LIKE WE WERE THEN. AND THE LAST TWO OR THREE COUNCILS WE'VE HAD HAVE FRANKLY BEEN PRETTY REMARKABLE, JUST FROM AN OUTSIDER'S POINT OF VIEW. AND I FEEL LIKE Y'ALL WILL LOOK AHEAD AND I DO THINK WE NEED THAT DESALINATION PLANT. I THINK IT'S LITTLE OUTRAGEOUS THAT THE COST INCREASE CAN KIND OF SEE PART OF THE REASON FOR IT. I KNOW IT'S BEEN THREE YEARS' WORTH OF INFLATION. THERE'S A LOT OF WHO KNOWS WHAT, STEEL AND ALUMINUM COST THESE DAYS, WHICH WILL BE A LOT OF IT IN THAT TYPE OF A PLANT. AND I THINK IF WE TRY TO WORK WITH THE CONTRACTORS OR MAYBE GET SOME OTHER BIDS, WE MIGHT BE ABLE TO REDUCE THAT QUITE A BIT BUT I HOPE WE DON'T LET THAT STOP THIS DESALINATION PLANT. I THINK IT'S VERY IMPORTANT FOR THE FUTURE. AND, YES, THERE HAVE BEEN OTHER PEOPLE WHO HAVE HAD PROBLEMS AND WE'LL JUST HAVE TO DO IT BETTER THAN THE REST HAVE DONE IT. THANK YOU. >> Mayor Guajardo: TH THANK YOU, MR. COWLLING. ALBERTO SARTUCCI. >> ALBERT SARTUCCI, DISTRICT 3, TEAM HARD LIFE YOUTUBE. THE SHUT DOWNS AND LAWSUITS THAT CITY TAXPAYERS WILL BE ON THE HOOK FOR WHEN THIS DESTROYS THE BAY WITH THE 3 MILLION GALLONS OF SLUDGE THAT ARE ON THAT PERMIT FOR THE INNER DESAL HARBOR IS HORRIBLE. I WANT TO ASK VERY IMPORTANT QUESTIONS THAT NOBODY IS TALKING ABOUT. ONE, THE SPILL IN THE INNER HARBOR THAT HAPPENED SEVERAL WEEKS AGO HAS NOT BEEN TOLD THE TRUTH AND THE TIMELY REPORTING TO THE PUBLIC THAT THE SPILL IS WAY BIGGER THAN BEING REPORTED. THIS IS VERY IMPORTANT BECAUSE WHAT ARE THE SAFETY PROTOCOLS FOR OPERATING THE DESAL PLANT WITH CHEMICAL SPILLS? WHEN IT DOES RUN BECAUSE OF ANY OIL OR GAS OR FOREVER CHEMICALS THAT ARE SPILLED IN THE CURRENT WATERWAY AND SUCKED INTO THE DESAL PLANT, WHAT IS THE PROCESS FOR SHUTTING IT DOWN, CLEANING THE CONTAMINATION OF THE WATER PIPES, AND WHAT ARE THE PROJECTED COSTS OF THAT? WHAT IS THE PLAN TO FIX OR CLEAN THOSE CONTAMINATED AREAS WHEN WE ARE PROMISING WATER TO INCOMING INDUSTRY. HOW MUCH ARE WE GOING TO BE SUED? Y'ALL HAVE CONTRACTS SIGNED FOR PRE-SELLING THIS WATER TO INDUSTRY. I KNOW THERE'S SOME KIND OF VERBIAGE IN THERE THAT IF WATER IS NOT SUPPLIED FOR EACH DAY, EACH WEEK, OR EACH MONTH, WHAT ARE THOSE NUMBERS? YOU NEED TO BE SHOWING THE PUBLIC WHAT THOSE NUMBERS ARE AS WELL AS JUST THE OPERATING COSTS. BECAUSE RIGHT NOW YOUR SCARE TACTIC OF SAYING, HEY, WE ARE ON THE HOOK FOR $200 MILLION NOW FROM $100 MILLION LAST WEEK IS NOT GOING TO WORK. YOU NEED TO SHOW THE REAL NUMBERS OF WHAT WE'RE GOING TO BE FACING AS TAXPAYERS BY Y'ALL FORCING US TO DO THIS DEAL. AND IT IS RIDICULOUS. RIGHT NOW I'M LIVE ON MY CHANNEL SHARING THIS INFORMATION. WE GOT OVER 200,000 SUBS WATCHING FROM ALL OVER THE WORLD AND THEY'RE ALL SENDING IN THE INFORMATION OF EVERY SINGLE DESAL PLANT THAT IS NOT DOING WHAT THEY PROMISED THEY WOULD DO. WHEN Y'ALL WENT TO VISIT CARLSBAD, CALIFORNIA, IT WASN'T UP AND RUNNING THEN BUT Y'ALL MADE A NICE DEAL SAYING IT'S THIS, IT'S THAT. WE KNOW. WE CAN PUT THE DATES TOGETHER. THEY SHOW WHEN THEY'RE OPERATING AND NOT OPERATING. RIGHT NOW, EVERYBODY IS PAYING ATTENTION. OH, WE'RE IN DROUGHT. WE'RE IN DROUGHT. STOP LYING TO THE PUBLIC. THIS WATER IS ALREADY SOLD. THE PAPERWORK IS OUT THERE SHOWING WHAT COMPANIES IT WAS SOLD TO ALREADY. THIS WATER IS NOT FOR US, IT'S FOR INDUSTRY. LET THEM PAY FOR IT AND MAKE SURE IT'S DONE IN A PROPER WAY BECAUSE WE'RE RELEASING 3 MILLION GALLONS OF SLUDGE 900 FEET AWAY FROM THE INTAKE -- Y'ALL ARE POLLUTING THE WATERWAY. Y'ALL GOT TO THINK OUTSIDE THE BOX AND START LOOKING WHAT'S HAPPENING WITH THE WATERWAY YOU'RE INTENDING ON POLLUTING. >> Mayor Guajardo: THANK YOU. ELENA MARTINEZ. >> HE'S A LOT TALLER THAN I AM. ELENA MARTINEZ, CORPUS CHRISTI, TEXAS. I HAVE A FEW TALKING POINTS HERE TODAY. I NORMALLY COME REALLY, REALLY PREPARED BUT I HAVE A FEW ITEMS I WANT TO TALK ABOUT INSTEAD OF FOCUSING ON JUST ONE. BUT BEFORE I START, I WANT TO SAY A COUPLE OF THINGS. EVERY PERSON ON THIS COUNCIL HAS SAID SOMETHING AT ONE POINT THAT I ABSOLUTELY DISAGREE WITH. BUT ALSO EVERY PERSON ON THIS COUNCIL HAS SAID AT LEAST ONE THING, IF NOT MORE, THAT I DEFINITELY AGREE WITH. SO IT WOULD BE REALLY EASY FOR ME TO CHOOSE PEOPLE I LIKE AND SAY, YOU KNOW, I LIKE THIS PERSON SO I'M GOING TO AGREE WITH EVERYTHING THEY SAY. I DON'T LIKE THIS PERSON SO I'M NOT GOING TO AGREE WITH EVERYTHING THEY SAY. BUT THAT'S NOT HOW I'M BUILT. I MAKE UP MY MIND BASED ON THE ISSUES AT HAND AND NOT WHOSE SIDE I'M ON. SO TO GET STARTED, I WANT TO TALK A LITTLE BIT ABOUT DESAL. THE THING THAT'S REALLY GOTTEN AT ME WITH DESAL IS THAT IT SEEMS TO BE WE'RE DOING CRISIS-BASED DECISION MAKING AND EVERY DECISION I HAVE MADE IN A CRISIS UNDER PRESSURE, I REGRETTED. BECAUSE I MADE A DECISION THAT I HAD TO MAKE AND IT DIDN'T TURN OUT THE WAY I WANTED IT TO. SO IF WE'RE GOING TO DO THIS, WE CAN'T DO IT BECAUSE IT'S A CRISIS. WE HAVE TO DO IT BECAUSE WE'RE MAKING THE RIGHT DECISION. AND I HAVE TO SAY THE PRICE TAG ON THIS IS TOO HIGH. IT'S NOT PROPERLY VETTED. YOU'RE AFFECTING CITIZENS IN THE HILLCREST NEIGHBORHOOD. YOU'RE AFFECTING THE ECONOMY OF OUR SMALL BUSINESSES. YOU'RE AFFECTING THE ECOSYSTEM OUT IN OUR BAY. THERE ARE SO MANY THINGS. I HAVE LIVED IN CORPUS MOST OF MY LIFE. I CAME HERE WHEN I WAS 6 YEARS OLD. I LEFT A COUPLE OF TIMES. I ALWAYS MAKE MY WAY BACK. I CAN'T SEEM TO HELP IT. I LOVE THIS CITY. I DON'T WANT THE SPARKLING CITY TO BECOME AN IRONIC NAME. SO LET'S TALK ABOUT LIBRARY FUNDING. MY SON PARTICIPATED IN THE SUMMER READING PROGRAM AND MAYOR GUAJARDO TOOK A PICTURE WITH HIM, POSTED IT ON HER FACEBOOK PAGE. DON'T BLAME HER, HE'S AN ADORABLE KID. SHE ALSO MADE A SPEECH AT THE EVENT ABOUT HOW IMPORTANT IT IS TO FUND THE LIBRARIES. OUR CURRENT PROPOSED BUDGET ON THE CITY WEBSITE, THERE'S A SMALL EXPECTED INCREASE IN REVENUE. THERE'S A DECREASE IN PERSONNEL EXPENSES, A DECREASE IN OPERATING EXPENSES, AND THERE IS A SIGNIFICANT INCREASE IN SERVICE ALLOCATION. SO I WOULD LIKE TO SEE A BREAKDOWN OF WHAT THOSE EXPENSES ARE FOR. BUT IF IT IS IMPORTANT TO FUND THE LIBRARIES, WHICH I DO BELIEVE IT IS, I THINK WE SHOULD FUND THE LIBRARIES. I THINK WE SHOULD STOP TAKING MONEY AWAY FROM OUR LIBRARIES. HART IS MY LIBRARY AND IT HAS BEEN MY LIBRARY SINCE I WENT TO FLOUR BLUFF IN HIGH SCHOOL WHEN IT WAS BUILT. WE'VE LOST LIBRARY SERVICES. WE'VE SPENT MONEY ON UNNECESSARY LIBRARY CARD CATALOG CATEGORIES. WE HAVE REDUCED THE NUMBER OF STAFF. >> Mayor Guajardo: THANK YOU, MS. MARTINEZ. JASON HALE. AND THEN CHLOE TORRES, MAGGIE PEACOCK, AND ADAM RIOS. >> JASON HALE, CORPUS CHRISTI. THANK YOU, MAYOR. GOOD AFTERNOON, COUNCIL MEMBERS. TODAY I WANT TO TALK ABOUT WATER SUPPLIES. SO FIRST TOPIC IS INNER HARBOR WATER TREATMENT CAMPUS. I THINK WE STILL NEED AN INDEPENDENT REVIEW FOR THE MODELING DONE FOR THE INNER HARBOR. SO FAR THERE HASN'T BEEN ONE AND RIGHT NOW THERE'S A GROUP THAT IS WILLING TO FUND AN INDEPENDENT REVIEW. THEY'RE LOOKING AT EXPERTS WHO CAN DO THE REVIEW. ALL THEY NEED IS THE DATA FROM KIEWIT, WHATEVER THEY'RE AVAILABLE TO SEND. I THINK THIS INDEPENDENT REVIEW IS IMPORTANT BECAUSE IT'S CRITICAL THAT WE MAKE SURE THAT THIS PROJECT IS SAFE FOR THE ENVIRONMENT, JUST LIKE ALL OF OUR LARGE WATER SUPPLY PROJECTS. PLUS, IF THERE'S ANY FLAWS IN THE MODELING, IT COULD LEAD TO HIGHER COSTS AND COSTS ARE IMPORTANT. SO THAT'S MY SECOND TOPIC IS COSTS. SO THE CAPITAL COSTS FOR INNER HARBOR WENT UP 50%. DEBT SERVICE IS GOING TO GO UP HIGHER THAN THAT BECAUSE WE DON'T HAVE ACCESS TO LOW-INTEREST LOANS FOR THAT EXTRA $500 MILLION. THE OPERATION AND MAINTENANCE EXPENSES SEEM LOW, $32 MILLION A YEAR. ESPECIALLY FOR THE AREA THAT IT'S IN, LIKE BROWNSVILLE IS IN A SHIP CHANNEL AND IT HAD A LOT OF ISSUES BECAUSE THE SHIP CHANNEL NEEDS A LOT OF PRETREATMENT. PROBABLY MORE THAN A PLANT LIKE CARLSBAD. I THINK CARLSBAD WAS $50 MILLION FOR THEIR 50 MGD PLANT. SO IT KIND OF LOOKS LIKE WE SCALED IT DOWN EXACTLY THE SAME BUT I'M CONCERNED THAT IT MIGHT BE MORE THAN THAT. IT WOULD BE NICE TO SEE A BREAKDOWN OF THE ESTIMATES AND THE JUSTIFICATIONS FOR THOSE ESTIMATES. IF THERE ARE ANY ERRORS IN THAT, THEY WILL ADD UP OVER TIME AND OVERALL MAKE THE PROJECT MORE EXPENSIVE THAN STATED. I THINK AT THE END OF THE DAY IT'S JUST IMPORTANT THAT WE GET ALL THE FACTS ON THE TABLE SO Y'ALL CAN MAKE THE BEST DECISION POSSIBLE. I THINK Y'ALL ARE WORKING ON THAT AND I APPRECIATE THAT. I'M GLAD Y'ALL MOVED FORWARD WITH EVANGELINE. I THINK THAT SHOULD BE A TOP-PRIORITY PROJECT. I KNOW THIS SOUNDS CRAZY BUT I'M WONDERING HOW MUCH NEW WATER DO WE ACTUALLY NEED. LIKE I SAID, IT SOUNDS CRAZY BUT ON THE SWIFT LOAN IT SAID WE WERE SELLING 75% OF WHAT WE WERE ALLOWED TO SELL WITHOUT RUNNING OUT OF WATER IN OUR DROUGHT OF RECORD, WHICH WAS 2013. THIS DROUGHT IS THE NEW DROUGHT OF RECORD SO THAT ALLOWABLE AMOUNT WILL BE LOWER. WE DON'T KNOW WHAT THAT WILL BE UNTIL THE DROUGHT OF RECORD IS OVER, THIS DROUGHT. BUT THE REASON I BRING IT UP IS BECAUSE I HAVEN'T HEARD ANY DISCUSSION ABOUT THAT AND IF WE OVERBUILD OUR WATER SUPPLIES, IT COULD MAKE OUR WATER RATES ASTRONOMICAL. ONCE WE GET THE RAIN THAT WE'RE DUE. BECAUSE WE'RE IN YEAR SIX OF A REALLY BAD DROUGHT AND THAT RAIN WILL COME. THANKS. >> Mayor Guajardo: THANK YOU, MR. HALE. CHLOE TORRES. YES COUNCILWOMAN. >> Campos: HE FIRST MENTIONED ABOUT THE INDEPENDENT STUDY. I KNOW THAT I MET WITH ONE INDIVIDUAL AND I BELIEVE ALL WE NEED TO DO IS GIVE PERMISSION TO VAN HAZEL. I'M HOPING THAT THE CITY WILL COOPERATE AND BE ABLE TO GET THAT AS JUST ANOTHER REASSURANCE THAT IF WE WERE TO GO FORWARD WITH THE INNER HARBOR THAT IT WOULD BE SOUND FOR THE ENVIRONMENT. SO, AGAIN, THIS WOULD BE FOR AN INDEPENDENT STUDY AND WE'RE WAITING ON BRETT TO ANSWER THAT. >> Zanoni: YOU'RE WAITING ON WHAT COUNCILWOMAN? SORRY. >> Campos: BRETT TO GIVE. >> Zanoni: WE'LL FIND OUT. IT'S NOT CITY -- INTELLECTUAL PROPERTY BELONGS TO KIEWIT OR THEIR SUBCONSULTANT BUT WE'LL FIND OUT. >> Campos: THANK YOU. >> CHLOE TORRES, DISTRICT 2. SO THE HANDOUT BEFORE YOU IS A DOCUMENT THAT WAS CO-CREATED BY DIFFERENT COMMUNITY MEMBERS OF WHOM ARE A PART OF DIFFERENT ORGANIZATIONS BUT SOME COMPLETELY UNAFFILIATED. IT LAYS OUT OUR PEOPLE'S BUDGET PLATFORM FOR THE YEAR 2025 OF WHICH IS COMPOSED OF THREE DIFFERENT TENETS. THOSE BEING DEMOCRACY AND TRANSPARENCY, QUALITY OF LIFE PROGRAMS, AND PEOPLE-CENTERED INFRASTRUCTURE. SO JUST WANTED TO START BY SAYING THAT THIS IS OUR BEST-FAITH ATTEMPT AT CO-GOVERNANCE WITH THE CITY. IT IS REALLY UNFORTUNATE THAT OFTENTIMES THOSE OF US WHO COME TO BRING CONCERNS ARE TREATED AND PERCEIVED AS ADVERSARIES RATHER THAN PARTNERS. AND IT'S WHY DISTRICT 2 COUNCILWOMAN SYLVIA CAMPOS IS SO BELOVED IN OUR COMMUNITY BECAUSE SHE IS A CHAMPION OF CO-GOVERNANCE. AND I BELIEVE THAT JUST BECAUSE COUNCILS IN THE PAST AND EVEN PRESENT HAVEN'T CHOSEN THIS ROUTE, THAT DOESN'T MEAN IT'S EVER TOO LATE TO CHANGE COURSE. I JUST WANTED TO READ IT REALLY QUICKLY FOR DEMOCRACY AND TRANSPARENCY. WE HAVE A COLLECTIVE RIGHT TO SHAPE OUR CITY IN A WAY THAT IS RESPONSIVE TO THE MOST URGENT NEEDS OF WORKING-CLASS PEOPLE AND ALSO REFLECTIVE OF OUR DREAMS AND DESIRES. IN ORDER FOR THIS TO BE POSSIBLE, WE NEED MORE ACCESS TO BOTH IMPORTANT INFORMATION REGARDING THE BUDGET AND TO DECISION-MAKING PROCESSES. WHAT THIS COULD LOOK LIKE IS LONGER AND MORE FREQUENT COMMUNITY BUDGET INPUT SESSIONS INCLUDING ONES OFFERED ON THE WEEKENDS. THOSE THAT HAVE CHILDCARE AND FREE FOOD. ALSO, OPEN PUBLIC COMMENT FOR THE CITY COUNCIL BUDGET WORKSHOPS. FOR QUALITY OF LIFE PROGRAMS, WE ARE DEMANDING ROBUST FUNDING FOR PROGRAMS AND SERVICES THAT WILL IMPROVE OUR COLLECTIVE QUALITY OF LIFE AND PRODUCE EQUITABLE HEALTH OUTCOMES. MENTAL HEALTH SERVICES THAT PROMOTE SAFETY AND REDUCE CRIME PLAY A VITAL ROLE IN MEETING THOSE DEMANDS. YOU CAN SEE SOME OTHER EXAMPLES. THE THIRD TENET IS PEOPLE-CENTERED INFRASTRUCTURE. FOR TOO LONG CITY LEADERSHIP HAS PURSUED CAPITAL IMPROVEMENT PROJECTS THAT UNFAIRLY FAVOR INDUSTRIAL DEVELOPMENT RATHER THAN TAKING CARE OF AGING INFRASTRUCTURE THAT WE NEED TO SUSTAIN OR IMPROVE THE QUALITY OF LIFE FOR RESIDENTS. SO I JUST WANTED TO SAY THAT THERE HAVE BEEN SOME FALSE EQUIVOCATIONS OF UNNECESSARY INFRASTRUCTURE VERSUS REAL, CRITICAL INFRASTRUCTURE IN TERMS OF THE DESALINATION FACILITY VERSUS TAKING CARE OF OUR WASTEWATER TREATMENT FACILITY. OF COURSE, WE AS RESIDENTS AREN'T GOING TO BE OPPOSED FOR SPENDING MONEY ON THINGS WE ACTUALLY NEED, BUT WE ARE GOING TO BE OPPOSED TO PROJECTS THAT LACK TRANSPARENCY AND, AGAIN, THAT FAVOR INDUSTRIAL DEVELOPMENT. WE WANT OUR LIBRARIES. WE WANT TO LIVE IN SAFE, HEALTHY CONDITIONS. SO THE PROBLEM IS NOT A LACK OF REVENUE, THE PROBLEM IS HOW WEALTH IS DISTRIBUTED. THANK YOU. >> Zanoni: IS THERE AN EXTRA COPY OF THAT DOCUMENT? I DIDN'T GET ONE. >> I'M SORRY. I CAN E-MAIL IT TO YOU. >> Zanoni: I'LL GET ONE. YOU NEED IT, COUNCILMAN? >> Mayor Guajardo: THANK YOU, MS. TORRES. >> Zanoni: BRING 12 THE NEXT TIME OR 10 AT LEAST. >> Mayor Guajardo: MAGGIE. >> COOL. MAGGIE PEACOCK, DISTRICT 2. YEAH, AS CHLOE WAS JUST TALKING ABOUT, A COALITION OF COMMUNITY MEMBERS ORGANIZATIONS LIKE DIFFERENT MUTUAL AID EFFORTS, ET CETERA HAVE COME TO CREATE THE PEOPLE'S BUDGET, WHICH IS THE ALTERNATIVE SOLUTION TO SOME OF Y'ALL'S PROPOSED BUDGETS. AND IT PRIORITIZES PEOPLE AND PLANET OVER PROFITS AND POLLUTION. AND AFTER TALKING WITH OUR FRIENDS NEIGHBORS CO-WORKERS FAMILY MEMBERS, FELLOW COMMUNITY MEMBERS, WE HAVE WRITTEN UP THAT PEOPLE'S BUDGET THAT IS ORGANIZED WITHIN THE THREE MAIN BUCKETS THAT SHE JUST WENT OVER. DEMOCRACY AND TRANSPARENCY, PEOPLE-CENTERED INFRASTRUCTURE, AND QUALITY OF LIFE PROGRAMS. AFTER LISTENING TO THE FIRST CITY COUNCIL BUDGET WORKSHOP AND HEARING THE CONCERNS OF COMMUNITY MEMBERS, PEOPLE ARE CONCERNED ABOUT ONE EXAMPLE IS FEES BEING IMPOSED ON PEOPLE AROUND THINGS LIKE PARKS. MYSELF AND A FEW OTHERS AT THE LAST BUDGET INPUT SESSION -- SORRY. I LOST MY SPOT. ASKED ABOUT THE POSSIBILITY OF ANNEXING INDUSTRY AND MAKING THEM PAY THEIR FAIR SHARE OF TAXES IF THAT COULD HELP US ELIMINATE FEES ON WORKING-CLASS PEOPLE BUT ALSO FUND QUALITY OF LIFE PROGRAMS SUCH AS THINGS THAT Y'ALL HAVE ON YOUR PAPER. BEHAVIORAL CRISIS RESPONSE PROGRAMS FOR COMMUNITY MEMBERS, COUNSELING SERVICES, RECOVERY PROGRAMS, COMMUNITY GARDENS, FREE ACCESSIBLE THIRD SPACES, AND SO MUCH MORE. WE WERE TOLD BY THE CITY MANAGER AND ASSISTANT CITY MANAGER AT THE LAST BUDGET INPUT SESSION THAT THIS WOULDN'T REALLY BE POSSIBLE BUT I DON'T THINK THIS IS TRUE. I MEAN, THE FIRST FOUR YEARS OF INDUSTRY'S EXISTENCE THEY AREN'T PAYING ANYTHING. THEY'RE PAYING NOTHING. NOT EVEN IN PILOT FEES. AND THEY'RE PAYING 0% ON POLLUTION CONTROL PILOT FEES AND 0% FOR BUSINESS PERSONAL PROPERTY TAXES AND THINGS LIKE MACHINERY. THESE HEAVY INDUSTRIES ARE NOT PAYING THEIR FAIR SHARE AND IF WE MAKE THEM PAY THEIR FAIR SHARE MAYBE WE WOULDN'T UNDERGO MILLION DOLLAR DEFICITS AND COMMUNITY MEMBERS WOULDN'T BE BURDENED WITH MORE FEES AND WE COULD FUND LIBRARIES AND INVEST IN QUALITY OF LIFE PROGRAMS FOR COMMUNITY MEMBERS AND NOT HEAVY INDUSTRY. SO I'M ASKING THAT WE ANNEX HEAVY INDUSTRY AND REALLOCATE THAT REVENUE FOR QUALITY OF LIFE PROGRAMS. WE CAN DO IT AND IF WE DID, WE WOULDN'T HAVE THESE PROBLEMS THAT WE'RE TALKING ABOUT WITH THINGS LIKE LIBRARIES, LIKE THE DISCUSSION Y'ALL JUST HAD A FEW MINUTES AGO. ADDITIONALLY, I THINK A FEW OF Y'ALL ARE SCARED BECAUSE THE FIGHT AGAINST THE HILLCREST DESALINATION PLANT IS STRONGER THAN EVER AND WE ARE GROWING IN POWER. WE CAN SEE THAT PRO-INDUSTRY FOLKS ARE SCARED BECAUSE MISLEADING PROPAGANDA IS RAMPING UP. THINGS LIKE MY TOWN, OUR FUTURE. LIKE THE SIGNS LIKE WHAT ARE WE WAITING FOR. LIKE PAGES AND SIGNS AND LIKE THE COASTAL BEND TRANSPARENCY PROJECT AND MORE. ALL OF THESE DIFFERENT THINGS ARE FUNDED BY INDUSTRY GOALS AND A FEW OF Y'ALL HAD THE AUDACITY TO PAINT OUR ENVIRONMENTAL JUSTICE MOVEMENT AS SOMETHING THAT IS PAID FOR. EVERY ACCUSATION IS AN ADMISSION. >> Mayor Guajardo: THANK YOU, MS. PEACOCK. ADAM RIOS. I DON'T THINK ADAM IS HERE, IS HE? I DON'T SEE HIM. >> City Secretary: HE SIGNED UP FOR WEBEX BUT I UNDERSTAND HE'S NOT ONLINE. >> Mayor Guajardo: SUSIE UPSHAW, GARY HUTCHINS, AND THEN WE'LL MOVE ON TO WEBEX. DO WE HAVE CHRISTINA ENGLISH? >> SUSAN UPSHAW, AND I'M IN GIL HERNANDEZ'S DISTRICT 5. I JUST WANTED TO SAY THANK YOU. I FEEL ILL PREPARED AFTER SITTING AND LISTENING TO THESE COMMENTS. ABOUT SIX MONTHS AGO YOU GUYS DECIDED TO GIVE RECLAIMED WATER TO THE CITIZENS. I KIND OF WANT TO GIVE YOU AN UPDATE AND SAY THANK YOU BECAUSE IT'S WORKING AND IT'S WORKING FOR ME. THERE'S MORE OBVIOUSLY THAT WE CAN DO, BUT IT'S WORKING. WE HAVE ABOUT -- AND THIS IS OFF THE TOP OF MY HEAD SO PLEASE DON'T HOLD ME TO IT. DON'T HOLD ANYBODY TO IT. WE HAVE ABOUT 500 PEOPLE THAT HAVE APPLIED FOR PERMITS. WE WENT -- AND I SAY "WE" BECAUSE I USE IT. WE WENT FROM A 2-INCH TO A 3-INCH LINE WHICH INCREASED THE AMOUNT OF WATER THAT CAN PUT OUT AS PEOPLE PICKED UP. WE WENT FROM A SINGLE LANE TO DOUBLE LANE. WE WENT FROM ONE LINE WITH SINGLE TOTES AND ANOTHER LINE FOR MULTIPLE TOTES THAT MAKES IT FASTER FOR MORE PEOPLE GOING THROUGH THE LINES. THEY ARE DOING AN ESTIMATED CONSUMPTION PER TRUCK PER DAY. SO IF YOU GET IN LINE, YOU DON'T WAIT TO FIND OUT THEY RAN OUT OF WATER, WHICH HAS HAPPENED ALMOST EVERY DAY. WE USE EVERY DROP OF THE 20,000 GALLONS Y'ALL GIVE US. EVERY DROP IS USED EVERY DAY. WE'RE AVERAGING ABOUT 40 USERS A DAY. AND BECAUSE THEY ESTIMATE, THEY SHUT THE GATE SO PEOPLE DON'T SIT IN LINE FOR FOUR HOURS AND FIND OUT THERE'S NO WATER, WHICH WAS A PROBLEM. THERE'S ONLY BEEN ONE TESTING FAIL THAT I KNOW OF WHERE THEY COULDN'T GIVE OUT WATER. EVERY OTHER DAY. YOU GUYS, IT'S SEVEN DAYS A WEEK. AND I NEED TO APPLAUD THE YOUNG MEN -- AND IT'S ALL MEN -- THAT ARE OUT THERE. THEY ARE SO POLITE AND SO NICE. THEY KNOW ALMOST EVERY USER THAT COMES OUT THERE. AND MY PERSONAL USE HAS GONE FROM TWO TOTES ONCE A WEEK TO HAVING TO MAKE TWO TRIPS BECAUSE IT'S GOTTEN SO DRY. BECAUSE NEITHER ONE OF MY NEIGHBORS WHO HAVE BIG OAK TREES ARE WATERING. SO I'M KIND OF LIKE DOING SIX TREES, NOT ON PURPOSE BUT THAT'S KIND OF THE WAY THE TREES ARE TAKING IT IN. IF YOU WANT WATER TODAY, JUST SO YOU KNOW, YOU HAVE TO BE THERE TWO HOURS EARLY. SO THEY OPEN TO GIVE OUT WATER AT 8:00 ON SUNDAY. 8:00 ON SATURDAY. YOU BETTER BE IN LINE AT 6:00. NO LATER THAN 6:30 IF YOU'RE GOING TO GET WATER THAT DAY. TODAY I GOT IN MY LINE AT 11:00 FOR A 1:00 DISTRIBUTION. THEY HAD SHUT THE GATE BEFORE WE STARTED DISTRIBUTING WATER AT 1:00 BECAUSE THEY WERE ALREADY FULL. THE REASON I WANTED TO COME IS I WANTED TO TELL YOU GUYS IT'S WORKING. >> Mayor Guajardo: WELL, THANK YOU. THANK YOU, MS. UPSHAW. >> THANK YOU, GUYS. KEEP IT UP. >> Mayor Guajardo: THANK YOU. GARY HUTCHINS. >> I'M GARY HUTCHINS, I LIVE HERE IN CORPUS CHRISTI. SUSAN PRETTY WELL COVERED EVERYTHING I WANTED TO SAY AS WELL. SHE GOT ALL THE BASES COVERED. BUT ONE THING I WOULD LIKE TO ASK, YOU COULD DOUBLE THAT WATER OVER THERE AND OPEN UP LONGER, IT WOULD HELP. I RUN ONE TOTE. I WATER MY YARD, TRY TO KEEP THE TREES AND STUFF AND THE NEIGHBOR'S TREES SUCK IT UP AS WELL. IT'S A GREAT RESOURCE. A GREAT RESOURCE. AND ONE THING I'D LIKE TO KNOW IF Y'ALL KNOW. ONE OF THE GUYS OUT THERE AT THE WATER PLANT TOLD ME THEY UNLOAD 10 MILLION GALLONS A DAY IN OSO BAY OFF OF THAT PLANT. IS THAT CORRECT? >> Zanoni: IT'S ABOUT THAT, YEAH. IT'S ABOUT 10 MILLION. >> THAT'S AN ASTRONOMICAL AMOUNT OF WATER. >> Zanoni: 8 TO 10. THAT'S OUR BIGGEST WASTEWATER TREATMENT PLANT. >> IS THERE ANY WAY TO INCREASE THE WATER THAT WE'RE ABLE TO PICK UP AND DISTRIBUTE? >> Zanoni: I'M GOING TO FIND OUT. WE'RE GOING TO FIND OUT. >> THAT'S A HUGE AMOUNT OF WATER. 10MILLION GALLONS A DAY. I FISH OSO BAY. >> City Secretary: JUST A REMINDER, WE DON'T ANSWER QUESTIONS. YEAH, WE DON'T ANSWER QUESTIONS. >> Mayor Guajardo: PETER. >> THANK Y'ALL. >> Mayor Guajardo: THANK YOU, MR. HUTCHINS, WE APPRECIATE THAT. OKAY. CHRISTINE ENGLISH YOU SAID IS ON THE PHONE, MS. HUERTA? OR WEBEX? >> City Secretary: MS. ENGLISH, ARE YOU ONLINE? >> I AM. >> City Secretary: GREAT. GO AHEAD AND MAKE YOUR COMMENT, PLEASE. >> CHRISTINA ENGLISH, DISTRICT 1. RECENTLY IT BECAME NECESSARY FOR ME TO MAKE MY PUBLIC COMMENTS VIRTUALLY VIA WEBEX. THERE'S ANY NUMBER OF REASONS A PERSON MAY NOT BE ABLE TO COME INTO COUNCIL IN PERSON. THINGS LIKE TRAVEL, WORK, FAMILY, DISABILITY, THE LIST IS REALLY ENDLESS. BECAUSE WE'RE ALLOWED TO SPEAK ON MORE THAN ONE TOPIC, LAST WEEK I HAD PREPARED THREE SEPARATE COMMENTS. HOWEVER, I DISCOVERED THAT REMOTE SPEAKERS ARE NOT ABLE TO SPEAK ON ITEMS DURING THE MEETING. THIS -- IT SUCKS. THAT SUCKS AND IT'S DISCRIMINATORY. HOW MANY ITEMS HAVE ALREADY BEEN CONSIDERED TODAY? HOW MANY VOTES HAVE WE ALREADY TAKEN TODAY? THIS COUNCIL HAS CREATED A SYSTEM WHERE ONLY THOSE WHO ARE ABLE TO SHOW UP PHYSICALLY TO CHAMBERS ARE ABLE TO FULLY PARTICIPATE. A PERSON WITH A REGULAR JOB IS LIKELY NOT GOING TO BE ABLE TO SIT THROUGH AN ENTIRE MEETING IN PERSON BUT THEY VERY WELL MAY BE ABLE TO ATTEND VIA WEBEX. A PERSON WITH SMALL CHILDREN WOULD PROBABLY FIND IT NEARLY IMPOSSIBLE TO SIT IN CHAMBERS ALL DAY. BUT, AGAIN, COULD PROBABLY BE AVAILABLE ON WEBEX. VERY IMPORTANTLY, A PERSON WITH A DISABILITY MAY BE COMPLETELY HOMEBOUND BUT WOULD STILL BE ABLE TO ATTEND AND PARTICIPATE VIA WEBEX. THIS MAYOR AND THIS BODY HAVE WORKED HARDER AT NOT HEARING THE PUBLIC THAN NEARLY ANYTHING ELSE. WE NOW HAVE TO LISTEN TO WHAT SOUNDS LIKE A DISAPPOINTED TEACHER BEG US TO BE NICE AT THE BEGINNING OF EACH MEETING. IT'S AN EMBARRASSMENT. IT SAYS SO MUCH ABOUT OUR LOCAL GOVERNMENT THAT YOU HAVE -- YOU HAVE TO BE AN ABLE-BODIED PERSON AND PROBABLY BE YOUR OWN BOSS TO BE INCLUDED. GENERAL PUBLIC COMMENT SHOULD BE HELD AT 5:30 P.M. ON MONDAY AND REMOTE SPEAKERS SHOULD BE ABLE TO HAVE THE SAME ACCESS AND ABILITY TO SPEAK ON AN ITEM AS IN-PERSON SPEAKERS. STOP EXCLUDING AND DISCRIMINATING AGAINST THE POOR AND THE DISABLED IN OUR COMMUNITY. AND START PROVIDING FAIR AND EQUAL ACCESS TO OUR PROCESS. THAT'S ALL. >> City Secretary: MAYOR, THAT CONCLUDES THE PUBLIC COMMENT PERIOD. >> Mayor Guajardo: WHAT IS YOUR NAME? AARON? >> [OFF MIC] >> Mayor Guajardo: AARON PRICE IS HERE. I GUESS -- >> City Secretary: I MISSED YOU. YOU'RE AT THE END. >> Mayor Guajardo: COME ON DOWN, MR. PRICE. >> AARON PRICE, INGLESIDE. JULY THE 22 THERE WAS A MEETING HERE AND MR. MARES AND HIS COUNCIL REFERRED TO YOURSELF AS -- A COMMITTEE HAD BEEN FORMED. CCA HEART AND KLEBERG INSTITUTE. HAS ANYBODY FACT CHECKED THAT? I DID. NOBODY HAS BEEN CONTACTED BY ANYBODY FROM KLEBERG COUNTY. THAT'S ALL I GOT. >> Mayor Guajardo: THANK YOU, MR. PRICE. OKAY. THERE BEING NO FURTHER BUSINESS, THIS MEETING IS NOW ADJOURNED AT 6:59. [MEETING ADJOURNED] sure to leave the area immediately. If you suspect a gas leak, call the gas department at 311. Do not light A ma and avoid using any electrical switches. So you don't create a spark that could start a fire. Also avoid driving into the area. Your vehicle's engine may ignite the vapors and do not attempt to extinguish any fire that might start natural gas is a part of the city of Corpus Christi's utility system and keeping our residents safe is our top priority. For more information. Visit CC texas.com/gas.