City of Corpus Christi Ethics Commission

Formal Written Response by Councilman Chad Magill

Dear Ethics Commission Members:

Thank you for taking time to review my written response to the Ethics Complaint filed against me.
While this may be much more brief than you expect, please know that the vote in question is
entirely contained by the factual information provided by city staff (As are all items we vote on.)
Here is the caption of Agenda Item 19 on August 23, 2016:
19. 16-0936 Second Reading Ordinance - Approving the Fiscal Year 2016-2017 Capital
Budget and Capital Improvement Planning Guide (1st Reading 9/16/16)
Ordinance approving the Fiscal Year 2016-2017 Capital Budget and Capital Improvement
Planning Guide in the amount of $214,979,600.
Sponsors: Assistant City Manager, Office of Management and Budget, Financial Services
Department and Engineering Services

There has been a great deal of speculation, rumor, and intentional misdirection of the facts by
some members of the media and others away from the facts contained in the actual agenda
item above. Please remain consistent with the actual item voted upon and not the rhetoric.
It is my intent to prove that there was and there is no conflict in the most efficient means possible
and respect your volunteer time. Should there be additional proof or information you need,
please let me know and I will gladly provide further facts and details.
Respectfully submitted,
Chad Magill

Enclosed:
1) Agenda Item 19 - (File 16-0936)
a. Agenda Memo CIP
b. Ordinance CIP
c. Changes in CIP
d. Presentation CIP
2) CIP Document - (in its entirety)

1|Page

OFFICIAL WRITTEN RESPONSE by COUNCILMEMBER CHAD MAGILL:

PART C STATEMENT OF COMPLAINT: (Italics are from the handwritten complaint by Grassedonio)
Kimberley Anne Grassedonio: On August 23, 2016, Councilmember voted on agenda item 19, Magill
voted on the agenda item knowing he had a conflict of interest.
RESPONSE: There is no conflict of interest.
It is a False Assumption/Premise by Grassedonio: Knowing he had a conflict of interest.
False Assumption/Premise definition:
A false assumption/premise is an incorrect proposition that forms the basis of an argument

PROOF: Corpus Christi Ethics Ordinance 2-312 Definitions:

Conflict of interest: Any interest, reasonable expectation of an economic benefit, substantial interest, or
anticipated substantial interest in a matter or business transaction involving the city that could influence
an individual's ability to make an impartial decision.
Economic benefit: An action that is likely to affect an economic interest if it is likely to have an effect on
that interest that is distinguishable from its effect on members of the public in general or a substantial
segment thereof.
Substantial interest: Any interest in a business entity if the person or relative owns ten (10) per cent or
more of voting stock or shares of the business entity or owns ten (10) per cent or more or five thousand
dollars ($5,000.00) or more of the fair market value of the business entity or funds received from the
business entity exceeds ten (10) per cent or more of the person's gross income for the previous year. A
person has a substantial interest in real property if he or his relative controls or has an equitable or legal
ownership interest with a fair market value of two thousand five hundred dollars ($2,500.00) or more.
http://www.cctexas.com/Assets/Government/City-Secretary/Files/EthicsOrdinance.pdf

1.

There is NO Conflict of Interest because the Agenda item covers 383 pages of City projects
and does not include any of the language of items I previously abstained on. I have
abstained of my own accord to items such as Service Plan, Annexation, and Wind Farm. It
is very important to note that the entire agenda item has NOT ONE mention of service plan,

2|Page

annexation, or wind farm within any of the documents, ordinance, or 383 page project list or
project descriptions.
Please search the entire digital document we voted on for any of the terms:
There is no single instance in 383 pages of: Service Plan, Annexation, or Wind Farm
http://www.cctexas.com/Assets/Departments/Budget%20and%20Strategic%20Management/
Files/ProposedCIPFY17.pdf (This document is also provided in PDF format)
a. ***NOTE: Any side reference (by some media and others) to annexation is easily
addressed by the fact that April 14, 2017 is when a program needs to be in place
for the service plan. In the CIP document page 3 (page 16 in PDF) it states very
clearly in the City Managers Message: The ten-year CIP is dynamic in nature.
City Council can at any meeting before April 14, 2017 appropriate funding to
delivery of services to the annexed area. It is a false assumption/premise to assert
that THIS vote on August 23rd, changes any service plan, annexation or wind farm.
THIS vote simply does not change anything but requires better planning of those
two utility lines. I am not opposed to fulfilling the citys obligations, but I will always
maintain that the expenditure of funds, especially the issuance of $14 million of
revenue bonds, which increase utility bills across the city, requires sufficient data
to support and move forward with. Keep in mind if this was a service plan vote, it
would have included ALL costs, not just utility lines. This vote was on utility lines
only because it is a CIP vote that does not change a Service Plan, Annexation, or
Wind Farm.
TXLGC 43.065 & 43.056b: (SERVICE PLAN REQUIREMENTS)
(1) police protection;
(2) fire protection;
(3) emergency medical services;
(4) solid waste collection, except as provided by Subsection (o);
(5) operation and maintenance of water and wastewater facilities in the annexed area
that are not within the service area of another water or wastewater utility;
(6) operation and maintenance of roads and streets, including road and street
lighting;
(7) operation and maintenance of parks, playgrounds, and swimming pools; and
(8) operation and maintenance of any other publicly owned facility, building, or
service.

3|Page

2.

There is No Conflict of Interest because there is no Economic Benefit to me, my family or

relatives. The only property my wife and I own are two homes. Our homestead at 641 Texas
Avenue, Corpus Christi, TX 78404 and my wifes prior homestead she purchased at 1018
Cunningham, Corpus Christi, TX 78411. Both homes are 12.9 miles and 7.0 miles (respectively)
away from the utility lines we amended in the CIP on Staples.
a. By this vote it shielded Taxpayers from having to pay the $14 million of Revenue Bonds
in cost avoidance there is no monetary gain to create a benefit.

3.

There is No Conflict of Interest because there is no Substantial Interest or Anticipated

Substantial Interest. There is no contract with the city, no wind turbines or proposed wind
turbines within the annexed area or city limits, no real property owned by me or my family
within miles of the voted upon utility lines, I do not, nor does my family, own 10% of the stock
of my employer, and no transaction exists that would be actual or anticipated 10% of my
annual income or my employers actual or anticipated annual income.

Thank you for your time, again I am more than willing to provide any further facts or details
needed for your determination.

Yours truly,
Chad Magill

4|Page

AGENDA MEMORANDUM
Public Hearing and First Reading item for the City Council Meeting of August 16, 2016
Second Reading item for the City Council Meeting of August 23, 2016
DATE:

August 3, 2016

TO:

Margie C. Rose, City Manager

THRU:

Mark Van Vleck, Assistant City Manager

markvv@cctexas.com
(361) 826-3082

THRU:

Valerie H. Gray, P. E., Executive Director of Public Works

valerieg@cctexas.com
(361) 826-3729

FROM:

Jeff H. Edmonds, P. E., Director of Engineering Services

jeffreye@cctexas.com
(361) 826-3851

Public Hearing and Approval of Fiscal Year 2016 2017

Capital Budget and Capital Improvement Planning Guide
CAPTION:
Ordinance approving the Fiscal Year 2016 2017 Capital Budget and Capital Improvement Planning
Guide in the amount of $214,979,600.
PURPOSE:
The purpose of this Agenda Item is to fulfill all requirements necessary to approve the Fiscal year 2016
2017 Capital Budget and Capital Improvement Planning Guide.
BACKGROUND AND FINDINGS:
Section 102.006 of the Texas Local Government Code reads as follows: The governing body of a
municipality shall hold a public hearing on the proposed budget. Any person may attend and may
participate in the hearing.
The City Charter requires City Council to review the recommendations of the Planning Commission and
act on the Capital Budget on a yearly basis. A public hearing was held before the Planning Commission
on Wednesday, June 29, 2016 and at that meeting the Planning Commission recommended approval of
the 2016 2017 Capital Budget and Capital Improvement Planning Guide based on changes as
discussed that evening. (Attached) On August 3, 2016, the revised and detailed FY 2016 2017
Capital Budget and Capital Improvement Planning Guide was presented to the Planning Commission as
an informational presentation and no additional changes were recommended.

ALTERNATIVES:
Approval of this budget is required by City Charter. City Council may:
1. Approve the budget as presented (Recommended)
2. Make changes to the budget and then approve.
OTHER CONSIDERATIONS:
The Public Hearing and first reading for this item is on August 16, 2016 and the second reading will be
the following week on August 23, 2016.
CONFORMITY TO CITY POLICY:
This item conforms to City Policy and statutes regarding approval of the Fiscal Year 2016 2017 Capital
Budget and Capital Improvement Planning Guide and is consistent with the Comprehensive Plan.
EMERGENCY / NON-EMERGENCY:
Not applicable
DEPARTMENTAL CLEARANCES:
Office of Management and Budget
FINANCIAL IMPACT:
Operating

Revenue

Fiscal Year
2015-2016

Not applicable

X Capital
Project to Date
Expenditures
(CIP only)

Current Year

Line Item Budget

Encumbered / Expended
Amount
This item
BALANCE

Future Years

TOTALS

$214,979,600
$214,979,600

$214,979,600
$214,979,600

Fund(s):
COMMENTS: Approval of Ordinance will appropriate the funds required to proceed with the Fiscal Year
2016 2017 Capital Improvement Program.
RECOMMENDATION:
Staff recommends approval of the Ordinance.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Changes in CIP
Presentation
FY 2017 Capital Budget and Capital Improvement Planning Guide

Page 1 of 2

ORDINANCE
APPROVING THE FISCAL YEAR 2016 2017 CAPITAL BUDGET AND
CAPITAL IMPROVEMENT PLANNING GUIDE IN THE AMOUNT OF
$214,979,600.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:

SECTION 1. That the Fiscal Year 2016 2017 Capital Budget and Capital
Improvement Planning Guide in the amount of $214,979,600 is hereby approved.
A copy of the Fiscal Year 2016 2017 Capital Budget and Capital Improvement
Planning Guide will be filed in the Office of the City Secretary

ATTEST:

CITY OF CORPUS CHRISTI

________________________
Rebecca Huerta
City Secretary

________________________
Nelda Martinez
Mayor

Page 2 of 2

That the foregoing ordinance was read for the first time and passed to its second reading
on this the _____ day of ___________, 2016, by the following vote:
Nelda Martinez

____________

Brian Rosas

____________

Rudy Garza

____________

Lucy Rubio

____________

Michael Hunter

____________

Mark Scott

____________

Chad Magill

____________

Carolyn Vaughn

____________

Colleen McIntyre

____________

That the foregoing ordinance was read for the second time and passed finally on this the
_______ day of _______________, 2016, by the following vote:
Nelda Martinez

____________

Brian Rosas

____________

Rudy Garza

____________

Lucy Rubio

____________

Michael Hunter

____________

Mark Scott

____________

Chad Magill

____________

Carolyn Vaughn

____________

Colleen McIntyre

____________

PASSED AND APPROVED, this the ______ day of ___________, 2016.

ATTEST:

_________________________
Rebecca Huerta
City Secretary

____________________________
Nelda Martinez
Mayor

FY 16 - 17 CIP
Planning Commission Presentation 6-29-16
Yr 1
Yr 2
Yr 3
Airport
16,565.5
11,969.6
9,194.6
Parks
894.5
510.0
510.0
P Fac
2,000.0
2,000.0
2,000.0
P H&S
14,260.3
13,750.0
10,250.0
Streets
27,894.7
6,383.0
Gas
4,079.8
3,915.5
3,845.5
SW
33,524.6
19,897.9
17,300.0
WW
55,267.5
55,013.0
37,013.0
Water
51,252.7
72,150.0
53,650.0
WS
6,811.7
7,800.0
17,500.0
212,551.3

193,389.0

151,263.1

FY 16 - 17 CIP
REVISED
Yr 1
Airport
23,989.6
Parks
894.5
P Fac
1,760.0
P H&S
14,260.3
Streets
27,894.7
Gas
4,079.8
SW
31,213.4
WW
54,961.6
Water
48,225.7
WS
4,300.0

Yr 2
11,969.6
7,860.0
2,528.0
26,345.0
6,383.0
3,915.5
19,897.9
55,013.0
72,150.0
6,200.0

Yr 3
3,639.0
17,660.0
2,681.0
37,305.0
3,845.5
17,300.0
37,013.0
53,650.0
10,500.0

211,579.6

212,262.0

183,593.5

FY 16 - 17 CIP
DIFFERENCES
Yr 1
Airport
7,424.1
Parks
P Fac
(240.0)
P H&S
Streets
Gas
SW
(2,311.2)
WW
(305.9)
Water
(3,027.0)
WS
(2,511.7)
(971.7)

Yr 2
7,350.0
528.0
12,595.0
(1,600.0)

Yr 3
(5,555.6)
17,150.0
681.0
27,055.0
(7,000.0)

18,873.0

32,330.4

Changes to Year 1 CIP:

1. P Facilities: ($240.0)
$2M in CO's was changed from lump sum in one
line item and itemized in several new projects
totaling $1,760.0.
2. Storm Water: ($2,311.2)
($2,311.2) was removed from Staples Street
(Morgan - IH 37)
3. Wastewater: ($305.9)
Forcemain Condition Assessment was added to
Wastewater in the amount of $520.0.
($825.9) was removed from Staples Street
(Morgan - IH 37)
4. Water: ($3,027.0)
Forcemain Condition Assessment was removed
from Water in the amount of ($520.0)
($2,099.0) was removed from Staples Street
(Morgan - IH 37)
($408.0) was removed from McArdle Road
(Whitaker to Nile).
5. Water Supply: ($2,511.7)
Greenwood Effluent Line was removed from Year
1 ($1,500.0)
Funding for Aquifer Storage and Recovery (ASR)
was removed ($1,011.7) Currently in FY 15 - 16.

6. Airport: $7,424.1
North GA Apron extension increased $190.0
Runway 17-35 Mitigation increased $1,695.9
Taxiway Reconfiguration decreased ($2,338.8)
Runway 13-31 Mitigation increased $2,371.4
Reconstruct Air Carrier Ramp moved from Year 2
to Year 1 $5,555.6
Added North GA Apron Rehabilitation $175.0
Removed Terminal Bldg Assessment ($225.0)

Fiscal Year 2016 2017

Proposed
Capital Improvement Program (CIP) Budget
and Planning Guide

City Council Presentation

August 16, 2016
1

Proposed Capital Improvement Budget

and Planning Guide
Purpose: To identify, prioritize, fund and
construct capital projects.
Provides: Project scopes, cost and schedules
for planned and anticipated projects over the
next ten years.
Includes: Details specific information on
projects programmed within the next three
years.
2

Proposed Capital Improvement Budget

and Planning Guide
Sections of the document:
Year One (Fiscal Year 2017) : A fully-funded work
plan based on available financial capacity and
greatest prioritized needs.

Short-Range Program: Facilitates fiscal and needsbased planning for Years 2 and 3.
Long-Range Forecast: Located at the back of each
section and consists of items considered important,
but not funded.
3

FY 17 Proposed CIP
Year One:

$214,979,600
168 Active projects

Streets,
$27,894.7 , 13%

Storm Water,
$31,213.4 , 14%

Airport,
$23,989.6 , 11%

, 0,
0%

Water,
$51,625.7 , 24%

Water Supply,
$4,300.0 , 2%
Gas,
$4,079.8 , 2%

Parks,
$894.5 , 0%
, 0, 0%
, 0, 0%
Wastewater,
$54,961.6 , 26%

Public H & S,
$14,260.3 , 7%

Public Facilities,
$1,760.0 , 1%

Backlog & FY 17 Proposed CIP

Airport
Year One: $23,989,600
Program Highlights:
Reconstruct Air Carrier Ramp
Air Operations Area
Runway 13-31 Extension Safety Mitigation

Funding Sources:
Federal Aviation Administration Grants
Certificates of Obligation
Airport CIP Reserves
6

Parks & Recreation

Year One: $894,500
Program Highlights:
Packery Channel Miscellaneous Improvements
Ben Garza Park Improvements
Sacky Park Improvements
Completion of previously funded Bond 2012 projects

Funding Sources:
Community Development Block Grant
Tax Increment Financing District
7

Public Facilities
Year One: $1,760,000

Program Highlights:
Central Library Roof Replacement
New Roof at City Service Center Warehouse
Repairs to Recreation Centers - Citywide

Funding Sources:
Certificates of Obligation
8

Public Health / Safety

Year One: $14,260,300

Program Highlights:
Completion of previously funded projects in the areas of:
Bond 2012
J.C. Elliott and Cef Valenzuela Landfills
Seawall Improvement Projects

Funding Sources:
Bond 2012 General Obligation Bonds

Certificates of Obligation
Sales Tax Proceeds (Type A Board Funding)
9

Streets

Year One: $27,894,700

(Utility Support: $41,781,300)
Program Highlights:

Gas

Water
Storm
Water
Waste
water

Gas:
800,000
WW:
6,578,600
Water: 11,189,300
SW:
23,213,400
$41,781,300

Yorktown Boulevard Everhart Road to South Staples

Rodd Field Road Expansion
Gollihar Road South Staples to Kostoryz (3 Phases)

Funding Sources:
General Obligation Bonds (2012)
Texas Department of Transportation Funding
Utility Revenue Bonds
10

Gas
Year One: $4,079,800

Program Highlights:
Gas Line Replacement / Extension Program
High Pressure Cathodic Protection Master Plan
West Side Interior Loop

Funding Sources:
Gas Revenue Bonds
11

Storm Water
Year One: $31,213,400
Program Highlights:
Lifecycle Pipe Rehabilitation and Replacement
Gollihar Outfall Repairs

Storm Water Master Plan

Funding Sources:
Storm Water Revenue Bonds
Storm Water Department Reserves
12

Water Supply
Year One: $4,300,000
Program Highlights:

City of Corpus Christi Pilot Desalination Program

Wesley Seale Instrumentation Testing and
Replacement

Funding Sources:
Raw Water Supply Reserves
Water Revenue Bonds

13

Water
Year One: $51,625,700
Program Highlights:
Programmed Water Service Life Extension
Elevated Storage Tanks, Phase 2
Support of Street Bond Projects

Funding Sources:
Water Revenue Bonds
Water Department Reserves
14

Wastewater

Year One: $54,961,600

Program Highlights:
Whitecap WWTP improvements to Odor Control, Processes,
Bulkhead and UV System
City-wide Collection System Assessment and Repair (IDIQ)
Capacity Assessment Improvements
Support of Street Bond Projects

Funding Sources:
Wastewater Revenue Bonds
Wastewater Department Reserves
15

FY 17 Proposed CIP

QUESTIONS?

16