Corpus Christi City Council Meeting - August 27, 2024

The City Council of Corpus Christi met on August 27, 2024, at 11:30 AM in Council Chambers. The meeting covered the FY 2025 budget process, Labor Day preparations, a consent agenda, and several individual consideration items, including the renewal of 15-year Industrial District Agreements (IDAs), the city's investment policy, the acceptance of the Michael J. Ellis Seawall, and a review of trust funds versus impact fees.

Consent Calendar

• Items 3–6 were approved by a single vote without discussion. These included: approval of the August 20, 2024 meeting minutes; two one-year supply agreements for hot mix asphaltic concrete (up to $9,000,000, with options up to $27,000,000); a five-year software and support agreement with Infor LLC (not to exceed $1,226,457); and a professional services contract for the Blucher Park Wastewater Improvements Preliminary Engineering Report (not to exceed $240,020).

Public Comments & Testimony

• John Weber (609 Naple St.) opposed renewing IDAs, arguing they reduce city revenue (citing $7 million/year in lost sales tax and franchise fees) and lead to costly water rate appeals. He urged annexation.
• Sean Flanagan (4218 Herndon St.) requested revision of the COVID-19 informed consent rule to include CDC information on vaccine adverse effects; expressed disappointment with staff recommending against change.
• Cheryl Martinez (address not stated) raised concerns about operations at Animal Care Services, citing animals held over 90 days, increased costs, and inadequate promotion. She offered to help with marketing.
• Susie Saldaña (4710 Hackle) stressed that the council serves the public, urged support for the people's choice on vaccines, and asked for careful consideration of desalination plant location.
• Joshua DeLeon (5914 Colorado Dr.) advocated for a smoking prohibition in parks, thanked council members for support, and requested further meetings.
• Heather Shields (217 Knickerbocker Rd.) opposed IDA renewals, citing high benzene pollution, and argued funds are needed for animal care, fire hydrants, and streets. She noted a lack of transparency in moving the agenda item from September to August.
• Al Ariola Jr. (301 Louise Dr.), representing United Corpus Christi Chamber of Commerce, supported IDAs, stating they generate $1 billion in wages and $20 million in charitable donations annually.
• Jumana Abidarahman (1948 S. Padre Island Dr.) opposed IDAs, linking them to environmental harm and alleged complicity in genocide due to Valero's fuel shipments to Israel.
• Lamar Taylor (address not given) spoke against IDAs, calling for environmental justice and input from fence-line communities. He also criticized budget cuts affecting the unhoused.
• Jesus Soto (3429 Kilgore St.) complained about poor street conditions and lack of response from city staff.
• Cheryl Vatzmeyer Rios (901 N. Upper Broadway) gave an update on the Ritz Theater restoration, noting a $230,000 Texas Historical Commission grant and a matched commitment from EDC.
• Adam Rios (7301 Tangled Ridge Ct.) presented a video preview of a community series highlighting Corpus Christi.
• Rachel Caballero (522 Hancock), representing the Corpus Christi Taxpayers Association, opposed IDAs, called for shorter terms (5 years), alleged corruption, and demanded more transparency.
• Tony Reyes (5905 Harvest Hill) spoke about suicide prevention month and a partnership for a community event. He requested support for housing and services grants.
• Jason Hale (211 Lemmon) presented modeling results comparing the Port's La Quinta desalination plant with the city's Inner Harbor plant, showing the Inner Harbor plant has worse salinity impacts. He requested documents explaining model accuracy differences.
• Guillermo Gallegos (7621 Cedar Brook Dr.) (by phone) supported annexation, arguing industries do not pay fair share and charity is tax-deductible.
• Eli McKay (1008 Marguerite St.) (by phone) opposed IDAs and a resolution to review trust funds, calling trust funds an antiquated system. She supported impact fees.
• Lou Ludina Stansky (14813 Leeward Dr.) (by video) supported the seawall transfer, emphasizing it enables FEMA eligibility for future disaster repairs.
• Mike Colbertson (800 N. Shoreline) (non-resident) spoke in favor of IDAs, stating industry pays taxes without receiving city services.
• Myra Alanis (FM 1899) raised concerns about the Robstown Water District annexation and noted the 20% PILOT increase may be insufficient in 10–15 years.
• Maggie Peacock (4407 SE 28th Ave.) (by video) demanded IDAs be sent back for better terms, criticized closed-door negotiations, and called for higher PILOT rates.

Discussion Items

• City Manager's Comments & Update on City Operations (Items 1–2):
  • FY 2025 Budget Process: Seven community input sessions were held (two more than typical). Five budget workshops with council occurred, with a fifth scheduled for August 29. The budget focuses on property tax relief, eliminating fees, and basic services. A goal of no layoffs for eliminated positions was stated: of 28 positions marked for reduction, 24 employees have been placed in other city jobs, and the remaining 4 (library-related) are expected to be placed. A report card on capital budget performance was introduced.
  • Labor Day Holiday Preparations: Logistics briefing held with 50 stakeholders. Approximately 21,000 vehicles expected over the JFK Causeway. Splash pads extended through October 6. Operations closures and openings listed.
• Item 7 – Industrial District Agreements (IDAs) (first reading):
  • Staff presented a new 15-year master agreement with a 19% increase in PILOT on improvements (from 62.5% to 74.5%), projected to generate $120 million over 15 years ($109M for general fund, $10M for streets). Total IDA revenue over 15 years estimated at $760 million. New provisions include annexed petition protection and backflow prevention requirements.
  • Council debate: Councilwoman Campos opposed, arguing annexation would yield more revenue and criticizing closed negotiations. Councilman Barrera supported, noting a 500% increase in PILOT revenue over 10 years (from $5M to $30M) and emphasizing no city services provided. Councilman Klein questioned the fair pay provision and de-annexations. Councilman Seckley and Mayor Guajardo praised the negotiation.
  • An amendment to reduce the term to 5 years failed. The original motion to approve the ordinance (first reading) passed (vote 7–2, implied).
• Item 8 – Investment Policy (resolution):
  • Amended to add diversification before yield, adjust investment committee composition (remove some staff, add two council members appointed by mayor and confirmed by council), and remove CFO as investment officer. Effective Feb 1, 2025.
  • Approved as amended.
• Item 9 – Michael J. Ellis Seawall (motion):
  • Staff reported all but one property owner signed letters of intent for easements; that owner is expected to sign. The city will accept legal responsibility for maintenance, funded by TURS II funds. Supporters cited FEMA eligibility and public safety. Councilman Klein expressed concerns about taking on private infrastructure.
  • Approved (motion carried).
• Item 10 – Capital Improvements Advisory Committee (CIAC) Review of Trust Funds vs. Impact Fees (resolution):
  • Requested by Councilmen Pusley, Hunter, and Hernandez. Debate centered on revisiting trust funds as an alternative to impact fees after $4 million spent on impact fee study. Some council members argued CIAC was only allowed to consider impact fees previously. An amendment directed staff to meet with CIAC and report back by September 17 with a work plan.
  • Approved as amended.

Key Outcomes

• Consent Agenda: Approved unanimously.
• FY 2025 Budget Process: Continued workshops; first reading scheduled for September 3, final adoption September 10.
• Item 7 – IDAs: First reading of ordinance authorizing new 15-year IDAs passed (motion carried, 7-2). Second reading set for September 3.
• Item 8 – Investment Policy: Resolution amending and reaffirming the investment policy approved with amendment (council confirmation of committee appointments).
• Item 9 – Seawall: Motion authorizing acquisition and acceptance of legal responsibility for the Michael J. Ellis Seawall passed.
• Item 10 – CIAC Trust Fund Review: Resolution directing staff to meet with CIAC and present a work plan by September 17, 2024.
• Audit Committee: Motion authorizing the audit committee to establish further direction for the city auditor passed.
• Public Comments: Several items were directed to staff for follow-up (e.g., streets, animal care).