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CITY OF TEXAS CITY
REGULAR CALLED CITY COMMISSION MEETING

AGENDA

WEDNESDAY, SEPTEMBER 4, 2024 - 5:00 P.M.

KENNETH T. NUNN COUNCIL ROOM - CITY HALL
1801 9th Ave. N.
Texas City, TX 77590

PLEASE NOTE: Public comments and matters from the floor are generally limited to 3 minutes in length. If you would like to request to speak, please do so in advance of the meeting by filling out a Request To Address Commission form. All in attendance are required to remove hats and/or sunglasses (dark glasses) during meetings and to also silence all cell phones and electronic devices.

(1)

ROLL CALL

(2)

INVOCATION

(3)

PLEDGE OF ALLEGIANCE

(4)

REPORTS

(a)

Lowry Fitness Center (Recreation and Tourism)

(5)

PUBLIC HEARING

(a)

The Interfield Group is requesting a zoning change from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.

(b)

Alpha Omega Power, LLC is requesting a zoning change from District "F" (Light Industrial) to District "S-P" (Site Plan) for development of an electric power generating station utilizing lithium-ion battery energy storage system (BESS) located at 701 Hwy 146 N., and north of the existing Golden Rule Logistics.

(6)

PRELIMINARY ZONING APPROVAL

(a)

Consider and take action on The Interfield Group's request for a zoning change from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.

(b)

Consider and take action on Alpha Omega Power, LLC's request for a zoning change from District "F" (Light Industrial) to District "S-P" (Site Plan) for development of an electric power generating station utilizing lithium-ion battery energy storage system (BESS) located at 701 Hwy 146 N., and north of the existing Golden Rule Logistics.

(7)

PUBLIC COMMENTS

(8)

CONSENT AGENDA

(a)

Approve City Commission Minutes for the August 21, 2024 meeting. (City Secretary)

(b)

Consider and take action on Resolution No. 2024-104, awarding and authorizing the Mayor to enter into an contract for Bid No. 2024-014 Building Materials Annual Contract. (Public Works)

(c)

Consider and take action on Resolution No. 2024-105, approving contracts for employee medical, dental, vision, life and disability, health savings and flexible spending accounts, and an employee assistance program, and authorizing the Mayor to execute those agreements. (Human Resources)

(d)

Consider and take action on Resolution No. 2024-106, awarding and authorizing the mayor to enter into a contract for RFP No. 2024-458 Disaster Recovery Consultant Services. (Purchasing)

(e)

Consider and take action on Resolution No. 2024-107, casting the City of Texas City Ballot for TML Region 14 Board Director. (Mayor's Office)

(9)

EXECUTIVE (CLOSED) SESSION

(a)

Convene for Executive (Closed) Session pursuant to the Texas Open Meetings Act, Chapter 551, Texas Government Code to discuss the following:

§551.077 - Personnel Matters: (1) and (2)

(10)

RECONVENE FROM EXECUTIVE (CLOSED) SESSION

(a)

Consideration and possible action concerning Personnel Matters discussed in Executive (closed) Session.

(11)

COMMISSIONERS' COMMENTS

(12)

MAYOR'S COMMENTS

(13)

ADJOURNMENT

NOTICE OF ANY SUBJECT APPEARING ON THIS AGENDA REGARDLESS OF HOW THE MATTER IS STATED MAY BE ACTED UPON BY THE CITY COMMISSION.

NOTICE: The City of Texas City will furnish free transportation to handicapped individuals via a 4-door sedan for anyone wishing to attend the City Commission meetings. Call 948-3111, City Secretary's Office before noon on Monday preceding the meeting to make arrangements.

I, THE UNDERSIGNED AUTHORITY, DO HEREBY CERTIFY THAT THIS NOTICE OF MEETING WAS POSTED ON THE BULLETIN BOARDS AT CITY HALL, 1801 9TH AVENUE NORTH, TEXAS CITY, TEXAS, AT A PLACE CONVENIENT AND READILY ACCESSIBLE TO THE GENERAL PUBLIC AND ON THE CITY'S WEBSITE ON AUGUST 30, 2024, PRIOR TO 5:00 P.M. AND REMAINED SO POSTED CONTINUOUSLY FOR AT LEAST 72 HOURS PRECEDING THE SCHEDULED TIME OF SAID MEETING.

______________________
RHOMARI LEIGH
CITY SECRETARY

CITY COMMISSION REGULAR MTG

(4)(a)

Meeting Date:

09/04/2024

Lowry Fitness Center (Recreation and Tourism)

Submitted By:

Rhomari Leigh, City Secretary

Department:

City Secretary

Information

ACTION REQUEST

Lowry Fitness Center (Recreation and Tourism)

BACKGROUND (Brief Summary)

RECOMMENDATION

Fiscal Impact

Attachments

Staff Report

CITY COMMISSION REGULAR MTG

(5)(a)

Meeting Date:

09/04/2024

The Interfield Group is requesting a zoning change from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development. Located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.

Submitted For:

Kim Golden, Transportation and Planning

Submitted By:

Veronica Carreon, Transportation and Planning

Department:

Transportation and Planning

Information

ACTION REQUEST

This is the Public Hearing on the request from The Interfield Group to change the zoning for 9.46 acres from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development. The property is located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.
The Public Hearing has been advertised in the Galveston Daily News as required by city ordinance and state statute.

BACKGROUND (Brief Summary)

The applicant, Jack Hernandez, The Interfield Group, for owner, Palmer TC Investment LLC, proposes to subdivide 9.56 acres located on the east side of Vicksburg Lane at FM 646 to construct a new 4,700sft convenience store with fuel pumps and a new 12,000sft retail strip centers. The property is currently zoned District O – Open Space and requires rezoning for the proposed uses. An application for an amending plat to subdivide the property into three lots is pending. The location is also within the Gateway Overlay District and requires masonry building facades, enhanced landscaping, and underground utilities among other things.

The site is existing vacant acreage. The property across Vicksburg Lane to the west is zoned District A - Single Family Residential and mostly vacant except for an existing business (Curran International). The adjacent properties to the north and east are zoned District O and have occupied commercial establishments. The property to the south across FM 646 is also zoned District O and has an occupied commercial establishment.

The subject location is currently zoned District O (Open Space) which purpose is to provide for land inside the city limits which is not subdivided and/or relatively undeveloped. It is anticipated that all O districts will be rezoned to other zoning classifications as the city proceeds toward full development. District E (General Business) is intended to provide for an extensive variety of enclosed retail and commercial services to serve the overall needs of the community. Due to the variety and potential intensity of these uses, they should be located along major transportation corridors and be appropriately buffered from residential areas. The enumerated allowed principal uses includes 160.035(B)(12) "any retail sales, commercial business or service which is not included in the O-P, D, or D-1 Zoning Districts, provided that all such uses shall be completely within an enclosed building and are not noxious or offensive by reason of the emission of odor, dust, gas fumes, noise or vibration. The proposed convenience store and retail strip are consistent with the District E General Business zoning classification.

The site DOES NOT have access to Texas City municipal water and sewer. The applicant will need to annex into the Bacliff MUD to obtain access to water and sewer service.

The site drains in part to FM 646, but in large part to a detention pond to be constructed in future Lot 3 which will discharge into the right of way of Vicksburg Lane and flow north into an improved drainage canal in the League City jurisdiction. The detention pond will be donated to a property owners association to be created by the Applicant and burdened with a drainage easement in favor of Lots A & B. Future Lots A & B will share a driveway from FM 646. Lot A will also have a driveway from Vicksburg Lane. Elevation plans provided for the C-Store and Retail strip indicate construction materials will consist of CMU block with stone veneer and stucco, and some pre-finished metal coping and aluminum canopy. The buildings are shown to have standing seam metal roofs. These materials satisfy the requirements of the GWY.Applicant also provided landscaping plans which show landscaping in excess of 15%, which includes the placement of 88 trees of 3-inch caliper and 520 shrubs. The dumpsters are shown to have the necessary enclosures.

RECOMMENDATION

The proposed site improvements include a 4700sft convenience store with 24 striped parking spaces, which includes one designated as accessible. The proposed site improvements also include a 12,000sft retail strip with 60 striped parking spaces, which includes four designated as accessible.

Texas City water and sewer are NOT available to the site. Applicant will be required to annex into the Bacliff MUD to obtain the new water and sewer connections. Mayor Johnson has provided a letter of no objection to the Bacliff MUD. Formal consent to annexation by the City Commission will be required when applicant submits its petition to the MUD.

At its regular meeting on July 1, 2024, the Planning Board voted without opposition (5-0) to approve the proposed site plan, subject to the applicant obtaining the necessary zoning change, the property owners association being created, and the subdivision being recorded in proper form.

At its regular meeting on August 6, 2024, the Zoning Commission held a public hearing. Eight (8) letters with Notice of the Public Hearing were mailed to adjacent property owners. No one appeared at the hearing to give comments in favor or in opposition to the zoning change. The Zoning Commission then deliberated and voted unanimously (5-0) to recommend approval of the zoning change from District "O" Open Space to District "E" General Business for the 9.56 acres at 1414 FM 646.

Staff have no objection to the proposed re-zoning provided it is subject to the establishment of a property owners association and the recording of a subdivision in proper form. The applicant will also be required to obtain water and sewer service as a condition to obtain a building permit.

Fiscal Impact

Attachments

Plat of area to rezone

Minutes

Legal Description of area to rezone

1414 FM 646 - Exhibits

1414 FM 646 - ZC Staff Report

1414 FM 646 - PB Staff Report

07-01-2024 PB Meeting Minutes

CITY COMMISSION REGULAR MTG

(5)(b)

Meeting Date:

09/04/2024

Alpha Omega Power, LLC is requesting a zoning change from District "F" (Light Industrial) to District "S-P" (Site Plan) for development of an electric power generating station utilizing lithium-ion battery energy storage system (BESS). Located at 701 Hwy 146 N., and north of the existing Golden Rule Logistics.

Submitted For:

Kim Golden, Transportation and Planning

Submitted By:

Veronica Carreon, Transportation and Planning

Department:

Transportation and Planning

Information

ACTION REQUEST

This is the Public Hearing for request from Alpha Omega Power LLC to change the zoning of 6.29 acres from District "F" (Light Industrial) to District "SP" Site Plan for the development of a proposed electric power generating station utilizing lithium ion battery energy storage system (BESS). The site is located at 701 S.H. 146 which is on the west side of SH 146, north of Golden Logistics, LLC and south of Baker Distributing.
As a BESS installation the application is being processed as a District SP (Site Plan) rezoning consistent with Section 160.051(A)(1)(f) provide for the development of specific uses which are not normally found in zoning districts, and (h) provide additional information and regulatory controls concerning the proposed use or uses for the protection of the public health, safety, morals and general welfare of the community.

A Notice of Public Hearing was advertised in the Galveston Daily News in accordance with city ordinance and state law.

BACKGROUND (Brief Summary)

Background
The applicant is AOP Holdings, LLC d/b/a Alpha Omega Power, which was established in 2023. The proposed project, Southern Select Energy, will encompass approximately 5.71 acres on 6.29 acres of vacant land. The location of the project is on the west side of S.H 146 N and north of the existing Golden Logistics. The property owner is LM Storage, LLC. The property is zoned District F. The project proposes to develop up to 106 lithium-ion battery containers for 205MW, 410MWh capacity at the site.

PROPOSED SITE IMPROVEMENTS - The Site improvements will include a 20ft concrete perimeter fire lane with access to all containers and two access roads as required by the Fire Marshal, security fencing, and landscaping of at least 6ft in height to provide screening of the battery containers from S.H. 146. The fencing along SH 146 will be a 6ft masonry wall. Container spacing has been adjusted to the 15ft minimum required by the Fire Marshal. In addition to the generating station, offsite improvements include electric transmission infrastructure that connects to Texas-New Mexico Power facilities in the vicinity. No water or sewer will be needed for this development. Site drainage will be accomplished using an on-site collection system that outfalls into the adjacent drainage systems.

EXISTING SITE - The project site is part of the former ETC Texas City Trucking Terminal. The site has been determined to have certain environmental concerns affecting the groundwater. Specifically, a barium plume. Monitoring wells have been established and were monitored for a required amount of time. Applicant has indicated and provided documentation that the monitoring has been concluded and the wells have been or will be removed. The location of the monitoring wells have been indicated on the site plan. As part of an approved Response Plan, the property is subject to a deed restriction which limits its use to commercial/industrial use. A Revised Response Action Plan dated June 9, 2021, and prepared for the previous owner, Enterprise Logistic Services, LLC, to provide to TCEQ, represented expected future use to remain a trucking facility. The current property owner advises it has received a No Further Action Required order from TCEQ

ADJACENT PROPERTIES - The adjacent property to the north is Baker Distributing Company at 801 SH 146. The adjacent property to the south is burdened with an easement to TNMP for the location of transmission poles and wires. No survey has been provided, but the width of the easement when scaled with the Google Maps tool indicates a width of approximately 200ft. However, the existence of overhead power lines in close proximity to the location should be noted. Immediately south and adjacent to the TNMP easement is Golden Rule Logistics, another distribution entity. Golden Rule Logistics is a tenant on the property. Records show the property south of the proposed site to have common ownership, LM Storage, LLC, with the subject location. It is understood the project owner, Alpha Omega Power, LLC, will also be a tenant. The property is bounded on the west by the railroad. Gulf Coast Water Authority owns the vacant property which is immediately west of the railroad. The site is bounded on the east by S.H. 146. The TNMP substation is located immediately east of SH 146.

TNMP HEIGHTS SUBSTATION - The applicant's submission includes the following information regarding the location in proximity to the TNMP Heights Substation:
The project location near the TNHeights substation was chosen based on detailed power flow analysis of the transmission system within TNMP service area. This analysis identified the TNHeights substation as an ideal candidate for a utility-scale BESS, providing sufficient injection capacity while remaining close to TNMP critical load centers. Injection capacity is a metric used to show how much electrical power (in MW) can be transmitted into a point of interconnection, such as a substation.
The TNHeights substation has the highest injection capacity (over 800MW), making it the ideal point of interconnection for multiple BESS projects to support regional grid reliability and electricity demand. Currently, one BESS project is operational at the TNHeights substation (BRP Heights, 10MW project), while three others are in queue to interconnect (Zeya 256MW, IEP Blackhawk 100 MW, and Southern Select 100MW). The combined capacity of these four projects (466MW) is well below the available injection capacity of the substation, indicating the substation is capable of supporting multiple BESS projects.

BATTERY CHEMISTRY and MANUFACTURER - The application indicates an intent to use LFP (lithium iron phosphate) battery cells which is the cell chemistry which currently available information indicates may be less prone to thermal runaway than the NMO (nickel manganese cobalt) battery cells. Applicant has indicated Fluence or Tesla are likely manufacturers, and that they intend to use CATL cells. CATL cells are considered Tier 1 cells.

FLOOD PLAIN/COASTAL ENVIRONMENT - The site is not located in a flood plain. It is located inside the area protected by the Texas City Hurricane Levee. Container foundations will be placed at elevation 7.0ft in accordance with Texas City ordinances.

Regarding protection from the saltwater/coastal environment, the applicant advises in an email received 7.19.2024 that the containers are fully integrated cabinets and shipped to the site as such, so there is no exposure to the elements during the installation process. The containers will meet the requirements of IP 67 at the Pack level and IP55 at the Battery Container level. IP67 means the individual battery packs do not allow for the ingress of dust particles. They are protected against the ingress of water from spraying/water jets and are rated to be submersed in up to 3' of water for up to 30 minutes without penetration. IP55 means the battery containers themselves provide protection from dust, low pressure water jets and damp and wet weather. The storage units also meet an anti-corrosion class of up to C5-H depending on the local environment. C5 is the highest class of anti-corrosion coating. Air filter maintenance is also a critical element of maintaining the units for optimal operating conditions and will be performed by a regular maintenance crew as often as needed, which may be weekly. Some of the indications in the email are different from the spec sheet provided with the application. The representations of the email are considered to supersede the spec sheet insofar as the conditions being presented to the Planning Board and others for approval at this time. The codes and standards most appropriate for saltwater/coastal environment will be applied by the Fire Marshal and Chief Building Official during the permitting process.

FIRE PROTECTION - Fire protection will be provided by on-site systems specifically designed for this application with Fire Marshal coordination. The project will be subject to the 2024 fire codes and building codes. The Fire Marshal may require additional submittals at the time of permitting and has advised these requirements will include at minimum commissioning and decommissioning plans, site safety plan, all UL test results for the batteries to be installed, a bond or other security for decommissioning and some requirements for insurance. The Chief Building Official is likely to require annual certification and inspection of ventilation systems at minimum. The Applicant acknowledges these, and other requirements must be satisfied to obtain the necessary permits.

DECOMMISSIONING - The costs of decommissioning have been identified as an issue of concern for cities because it is known that batteries have a service life which expires. Additionally, as technology evolves, installations become obsolete. A recent article from the Green Clean Solar, January 11, 2023, references some key findings from a study of the Electric Power Research Institute. The study estimated the cost of decommissioning for a 1-MWh NMC lithium-ion based grid energy storage system as $91,500. Applying this factor to the 410 MWH capacity proposed for this project would estimate the decommissioning cost as $37,515,000. Although this project is not proposing NMC lithium-ion batteries, the estimated decommissioning cost is based upon 40% dismantling and packaging, 30% transportation and only 30% recycling. The battery chemistry would have the most impact on the cost of recycling. The estimated cost is significant enough to warrant the posting of substantial security.

SECOND POINT OF ACCESS: The secondary access is proposed to be through adjacent property which is represented as having common ownership with the site being rezoned. The area is also burdened with an easement in favor of TNMP. Applicant provided a proposed easement and access agreement with the adjoining property owner just before the Planning Board meeting. Staff have subsequently provided comments on the access easement and recommend the final location be dedicated by plat as a fire lane for secondary access to the site. Such platting is necessary to be sure the access can be maintained permanently through the adjacent property which is burdened with an easement in favor of TNMP.  Fire Marshal has indicated a requirement for lockbox access. THE APPLICANT HAS NOT AGREED TO PROVIDE THE ACCESS BY PLAT BUT IS MAINTAINING THE EASEMENT AGREEMENT AS SUFFICIENT.

APPLICANT'S EXPERIENCE/COMPANY HISTORY – The applicant is AOP Holdings, LLC d/b/a Alpha Omega Power, which was established in 2023. The company profile and resumes of the key personnel are attached to the staff memos.

RECOMMENDATION

At its regular meeting on July 22, 2024, the Planning Board voted 3-2 to approve the proposed Detailed Site Plan and to recommend approval of the zoning change to the Zoning Commission and to the City Commission. The minutes of the Planning Board are attached in AgendaQuick.

At its regular meeting on August 6, 2024, the Zoning Commission held a public hearing. Notices of Public Hearing were mailed to eight (8) adjacent property owners before the hearing. One property owner appeared at the hearing and asked questions about the proposed development but did not state an opposition to the request for rezoning or to the project. Following discussion and deliberation the Zoning Commission voted 4-1 to recommend the rezoning to the City Commission. The minutes of the Zoning Commission meeting will be attached in AgendaQuick.

Fiscal Impact

Attachments

701 Hwy 146 N - ZC Staff Report

701 Hwy 146 N - Exhibits

701 Hwy 146 N - Legal Description

701 Hwy 146 N - PB Staff Report

07-22-24 PB Minutes

701 Hwy 146 N - Alpha Omega Supplemental Submission 1

701 Hwy 146 N - Alpha Omega Supplemental Submission 2

701 Hwy 146 N - Access Easement Agmt with LM Storage LLC

Minutes

CITY COMMISSION REGULAR MTG

(6)(a)

Meeting Date:

09/04/2024

Consider and take action on the zoning change request from The Interfield Group to rezone from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development. Located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.

Submitted For:

Kim Golden, Transportation and Planning

Submitted By:

Veronica Carreon, Transportation and Planning

Department:

Transportation and Planning

Information

ACTION REQUEST

Consider and take action on the zoning change request from The Interfield Group to rezone 9.46 acres from District "O" (Open Space) to District "E" (General Business) for a proposed Convenience Store and Retail Development. Located at 1414 FM 646 on the east side of Vicksburg Lane and west of Hwy 146 N.

BACKGROUND (Brief Summary)

The applicant, Jack Hernandez, The Interfield Group, for owner, Palmer TC Investment LLC, proposes to subdivide 9.56 acres located on the east side of Vicksburg Lane at FM 646 to construct a new 4,700sft convenience store with fuel pumps and a new 12,000sft retail strip centers. The property is currently zoned District O – Open Space and requires rezoning for the proposed uses. An application for an amending plat to subdivide the property into three lots is pending. The location is also within the Gateway Overlay District and requires masonry building facades, enhanced landscaping, and underground utilities among other things.

The site is existing vacant acreage. The property across Vicksburg Lane to the west is zoned District A - Single Family Residential and mostly vacant except for an existing business (Curran International). The adjacent properties to the north and east are zoned District O and have occupied commercial establishments. The property to the south across FM 646 is also zoned District O and has an occupied commercial establishment.

The subject location is currently zoned District O (Open Space) which purpose is to provide for land inside the city limits which is not subdivided and/or relatively undeveloped. It is anticipated that all O districts will be rezoned to other zoning classifications as the city proceeds toward full development. District E (General Business) is intended to provide for an extensive variety of enclosed retail and commercial services to serve the overall needs of the community. Due to the variety and potential intensity of these uses, they should be located along major transportation corridors and be appropriately buffered from residential areas. The enumerated allowed principal uses includes 160.035(B)(12) "any retail sales, commercial business or service which is not included in the O-P, D, or D-1 Zoning Districts, provided that all such uses shall be completely within an enclosed building and are not noxious or offensive by reason of the emission of odor, dust, gas fumes, noise or vibration. The proposed convenience store and retail strip are consistent with the District E General Business zoning classification.

The site DOES NOT have access to Texas City municipal water and sewer. The applicant will need to annex into the Bacliff MUD to obtain access to water and sewer service. The property is required to have access to public water and sewer service before a building permit can be issued.

The site drains in part to FM 646, but in large part to a detention pond to be constructed in future Lot 3 which will discharge into the right of way of Vicksburg Lane and flow north into an improved drainage canal in the League City jurisdiction. The detention pond will be donated to a property owners association to be created by the Applicant and burdened with a drainage easement in favor of Lots A & B. Future Lots A & B will share a driveway from FM 646. Lot A will also have a driveway from Vicksburg Lane. Elevation plans provided for the C-Store and Retail strip indicate construction materials will consist of CMU block with stone veneer and stucco, and some pre-finished metal coping and aluminum canopy. The buildings are shown to have standing seam metal roofs. These materials satisfy the requirements of the GWY.Applicant also provided landscaping plans which show landscaping in excess of 15%, which includes the placement of 88 trees of 3-inch caliper and 520 shrubs. The dumpsters are shown to have the necessary enclosures.

RECOMMENDATION

Fiscal Impact

Attachments

Plat of area to rezone

Legal Description of area to rezone

1414 FM 646 - Exhibits

1414 FM 646 - ZC Staff Report

1414 FM 646 - PB Staff Report

07-01-2024 PB Meeting Minutes

CITY COMMISSION REGULAR MTG

(6)(b)

Meeting Date:

09/04/2024

Consider and take action on the zoning change request from Alpha Omega Power, LLC to rezone from District "F" (Light Industrial) to District "S-P" (Site Plan) for development of an electric power generating station utilizing lithium-ion battery energy storage system (BESS). Located at 701 Hwy 146 N., and north of the existing Golden Rule Logistics.

Submitted For:

Kim Golden, Transportation and Planning

Submitted By:

Veronica Carreon, Transportation and Planning

Department:

Transportation and Planning

Information

ACTION REQUEST

Alpha Omega Power LLC is requesting a zoning change for 6.29 acres from District "F" (Light Industrial) to District "SP" Site Plan for the development of a proposed electric power generating station utilizing lithium ion battery energy storage system (BESS). The site is located at 701 S.H. 146 which is on the west side of SH 146, north of Golden Logistics, LLC and south of Baker Distributing.

As a BESS installation the application is being processed as a District SP (Site Plan) rezoning consistent with Section 160.051(A)(1)(f) provide for the development of specific uses which are not normally found in zoning districts, and (h) provide additional information and regulatory controls concerning the proposed use or uses for the protection of the public health, safety, morals and general welfare of the community.

BACKGROUND (Brief Summary)

The applicant is AOP Holdings, LLC d/b/a Alpha Omega Power, which was established in 2023. The proposed project, Southern Select Energy, will encompass approximately 5.71 acres on 6.29 acres of vacant land. The location of the project is on the west side of S.H 146 N and north of the existing Golden Logistics. The property owner is LM Storage, LLC. The property is zoned District F. The project proposes to develop up to 106 lithium-ion battery containers for 205MW, 410MWh capacity at the site.

PROPOSED SITE IMPROVEMENTS - The Site improvements will include a 20ft concrete perimeter fire lane with access to all containers and two access roads as required by the Fire Marshal, security fencing, and landscaping of at least 6ft in height to provide screening of the battery containers from S.H. 146. The fencing along SH 146 will be a 6ft masonry wall. Container spacing has been adjusted to the 15ft minimum required by the Fire Marshal. In addition to the generating station, offsite improvements include electric transmission infrastructure that connects to Texas-New Mexico Power facilities in the vicinity. No water or sewer will be needed for this development. Site drainage will be accomplished using an on-site collection system that outfalls into the adjacent drainage systems.

EXISTING SITE - The project site is part of the former ETC Texas City Trucking Terminal. The site has been determined to have certain environmental concerns affecting the groundwater. Specifically, a barium plume. Monitoring wells have been established and were monitored for a required amount of time. Applicant has indicated and provided documentation that the monitoring has been concluded and the wells have been or will be removed. The location of the monitoring wells have been indicated on the site plan. As part of an approved Response Plan, the property is subject to a deed restriction which limits its use to commercial/industrial use. A Revised Response Action Plan dated June 9, 2021, and prepared for the previous owner, Enterprise Logistic Services, LLC, to provide to TCEQ, represented expected future use to remain a trucking facility. A copy of the Revised Action Plan will be included in the agenda packet with this staff report.

ADJACENT PROPERTIES - The adjacent property to the north is Baker Distributing Company at 801 SH 146. The adjacent property to the south is burdened with an easement to TNMP for the location of transmission poles and wires. No survey has been provided, but the width of the easement when scaled with the Google Maps tool indicates a width of approximately 200ft. However, the existence of overhead power lines in close proximity to the location should be noted. Immediately south and adjacent to the TNMP easement is Golden Rule Logistics, another distribution entity. Golden Rule Logistics is a tenant on the property. Records show the property south of the proposed site to have common ownership, LM Storage, LLC, with the subject location. It is understood the project owner, Alpha Omega Power, LLC, will also be a tenant. The property is bounded on the west by the railroad. Gulf Coast Water Authority owns the vacant property which is immediately west of the railroad. The site is bounded on the east by S.H. 146. The TNMP substation is located immediately east of SH 146.

TNMP HEIGHTS SUBSTATION - The applicant's submission includes the following information regarding the location in proximity to the TNMP Heights Substation:
The project location near the TNHeights substation was chosen based on detailed power flow analysis of the transmission system within TNMP service area. This analysis identified the TNHeights substation as an ideal candidate for a utility-scale BESS, providing sufficient injection capacity while remaining close to TNMP critical load centers. Injection capacity is a metric used to show how much electrical power (in MW) can be transmitted into a point of interconnection, such as a substation.
The TNHeights substation has the highest injection capacity (over 800MW), making it the ideal point of interconnection for multiple BESS projects to support regional grid reliability and electricity demand. Currently, one BESS project is operational at the TNHeights substation (BRP Heights, 10MW project), while three others are in queue to interconnect (Zeya 256MW, IEP Blackhawk 100 MW, and Southern Select 100MW). The combined capacity of these four projects (466MW) is well below the available injection capacity of the substation, indicating the substation is capable of supporting multiple BESS projects.

BATTERY CHEMISTRY and MANUFACTURER - The application indicates an intent to use LFP (lithium iron phosphate) battery cells which is the cell chemistry which currently available information indicates may be less prone to thermal runaway than the NMO (nickel manganese cobalt) battery cells. Applicant has indicated Fluence or Tesla are likely manufacturers, and that they intend to use CATL cells. CATL cells are considered Tier 1 cells.

FLOOD PLAIN/COASTAL ENVIRONMENT - The site is not located in a flood plain. It is located inside the area protected by the Texas City Hurricane Levee. Container foundations will be placed at elevation 7.0ft in accordance with Texas City ordinances.

Regarding protection from the saltwater/coastal environment, the applicant advises in an email received 7.19.2024 that the containers are fully integrated cabinets and shipped to the site as such, so there is no exposure to the elements during the installation process. The containers will meet the requirements of IP 67 at the Pack level and IP55 at the Battery Container level. IP67 means the individual battery packs do not allow for the ingress of dust particles. They are protected against the ingress of water from spraying/water jets and are rated to be submersed in up to 3' of water for up to 30 minutes without penetration. IP55 means the battery containers themselves provide protection from dust, low pressure water jets and damp and wet weather. The storage units also meet an anti-corrosion class of up to C5-H depending on the local environment. C5 is the highest class of anti-corrosion coating. Air filter maintenance is also a critical element of maintaining the units for optimal operating conditions and will be performed by a regular maintenance crew as often as needed, which may be weekly. Some of the indications in the email are different from the spec sheet provided with the application. The representations of the email are considered to supersede the spec sheet insofar as the conditions being presented to the Planning Board and others for approval at this time. The codes and standards most appropriate for saltwater/coastal environment will be applied by the Fire Marshal and Chief Building Official during the permitting process.

FIRE PROTECTION - Fire protection will be provided by on-site systems specifically designed for this application with Fire Marshal coordination. The project will be subject to the 2024 fire codes and building codes. The Fire Marshal may require additional submittals at the time of permitting and has advised these requirements will include at minimum commissioning and decommissioning plans, site safety plan, all UL test results for the batteries to be installed, a bond or other security for decommissioning and some requirements for insurance. The Chief Building Official is likely to require annual certification and inspection of ventilation systems at minimum. The Applicant acknowledges these, and other requirements must be satisfied to obtain the necessary permits.

DECOMMISSIONING - The costs of decommissioning have been identified as an issue of concern for cities because it is known that batteries have a service life which expires. Additionally, as technology evolves, installations become obsolete. A recent article from the Green Clean Solar, January 11, 2023, references some key findings from a study of the Electric Power Research Institute. The study estimated the cost of decommissioning for a 1-MWh NMC lithium-ion based grid energy storage system as $91,500. Applying this factor to the 410 MWH capacity proposed for this project would estimate the decommissioning cost as $37,515,000. Although this project is not proposing NMC lithium-ion batteries, the estimated decommissioning cost is based upon 40% dismantling and packaging, 30% transportation and only 30% recycling. The battery chemistry would have the most impact on the cost of recycling. The estimated cost is significant enough to warrant the posting of substantial security.

SECOND POINT OF ACCESS: The secondary access is proposed to be through adjacent property which is represented has have common ownership with the site being rezoned. Applicant provided a proposed access agreement with the adjoining property owner just before the Planning Board meeting. Staff have subsequently provided comments on the access easement and recommend the final location be dedicated by plat as a fire lane for secondary access to the site. Such platting is necessary to be sure the access can be maintained permanently through the adjacent property which is used for logistics and staging. Fire Marshal has indicated a requirement for lockbox access. THE APPLICANT HAS NOT AGREED TO PROVIDE THE ACCESS BY PLAT BUT IS MAINTAINING THE EASEMENT AGREEMENT AS SUFFICIENT.

APPLICANT'S EXPERIENCE/COMPANY HISTORY – The applicant is AOP Holdings, LLC d/b/a Alpha Omega Power, which was established in 2023. The company profile and resumes of the key personnel are attached to the staff memos.

RECOMMENDATION

At its regular meeting on July 22, 2024, the Planning Board voted 3-2 to approve the proposed Detailed Site Plan and to recommend approval of the zoning change to the Zoning Commission and to the City Commission.

At its regular meeting on August 6, 2024, the Zoning Commission held a public hearing. Notices of Public Hearing were mailed to eight (8) adjacent property owners before the hearing. One property owner appeared to ask questions about the proposed development but did not state an opposition to the request for rezoning or to the project. Following discussion and deliberation the Zoning Commission voted 4-1 to recommend the rezoning to the City Commission.

Fiscal Impact

Attachments

701 Hwy 146 N - ZC Staff Report

701 Hwy 146 N - Exhibits

701 Hwy 146 N - Legal Description

701 Hwy 146 N - PB Staff Report

07-22-2024 PB Meeting Minutes

701 Hwy 146 N - Alpha Omega Supplemental Submission 1

701 Hwy 146 N - Alpha Omega Supplemental Submission 2

701 Hwy 146 N - Access Easement Agmt with LM Storage LLC

CITY COMMISSION REGULAR MTG

(8)(a)

Meeting Date:

09/04/2024

Submitted By:

Rhomari Leigh, City Secretary

Department:

City Secretary

Information

ACTION REQUEST

Approve City Commission Minutes for the August 21, 2024 meeting. (City Secretary)

BACKGROUND (Brief Summary)

RECOMMENDATION

Fiscal Impact

Attachments

Minutes

CITY COMMISSION REGULAR MTG

(8)(b)

Meeting Date:

09/04/2024

Bid No. 2024-014 Building Materials Annual Contract

Submitted For:

Mike McKinley, Public Works

Submitted By:

Mike McKinley, Public Works

Department:

Public Works

Information

ACTION REQUEST

Approve and award a contract for bid # 2024-014 Building Materials Annual Contract.

BACKGROUND (Brief Summary)

On August 07, 2024, the Notice to Bidders was emailed to the Galveston Daily News, and published on August 09 and August 16, 2024. Bid packets were sent to local area vendors. Bids were opened on August 27, 2024, at 10 a.m. and read aloud. The lowest responsible bidder meeting all qualifications is Kilgore's Clear Lake Lumber in League City, TX. As this is an annual contract there are no guaranteed minimum or maximum purchases for the duration of this contract. Funding for this annual contract is budgeted in various department budgets.

A bid tabulation is attached for your review.

RECOMMENDATION

It is the recommendation of the Public Works Department to award the 2024-014 Building Materials Annual Contract to Kilgore's Clear Lake Lumber for the unit prices bid, and that the Mayor is authorized to execute a contract on behalf of the City Commission.

Thank you.

Fiscal Impact

Attachments

Exhibit A

Resolution

CITY COMMISSION REGULAR MTG

(8)(c)

Meeting Date:

09/04/2024

Approving contracts for employee medical, dental, vision, life and disability, health savings and flexible spending accounts, and an employee assistance program, and authorizing the Mayor to execute those agreements.

Submitted For:

Jennifer Price, Human Resources

Submitted By:

Jennifer Price, Human Resources

Department:

Human Resources

Information

ACTION REQUEST

The Human Resources Department is seeking approval for the City of Texas City's entry into contracts with the following for employee benefits beginning 01/01/2025:

Medical: Blue Cross Blue Shield
Dental: United Concordia
Vision: VSP
Life and Disability: Mutual of Omaha
Health Savings Account (HSA)/Flexible Spending Account (FSA): WEX
Employee Assistance Program (EAP): Deer Oaks

BACKGROUND (Brief Summary)

RFP 2024-011 went out May 8, 2024 with proposals due June 6, 2024. A total of 56 proposals were received for the various employee benefits coverages. From there, the City of Texas City's insurance consultants and broker, HUB International, scored the vendors and identified the finalists for consideration. HUB went back to these finalists for their best and final offers (BAFO) as well as interviewed Blue Cross Blue Shield and United Healthcare along with the Chief Financial Officer, Executive Director of Management Services, and the Director of Human Resources.

RECOMMENDATION

After careful review by the City's benefit and insurance brokers along with the Chief Financial Officer, Executive Director of Management Services, and the Director of Human Resources, it is recommended for approval to enter the following contracts for employee benefits:

Medical: Blue Cross Blue Shield
Dental: United Concordia
Vision: VSP
Life and Disability: Mutual of Omaha
Health Savings Account (HSA)/Flexible Spending Account (FSA): WEX
Employee Assistance Program (EAP): Deer Oaks

Fiscal Impact

Attachments

Vendor Scoring Matrices

Recommended Vendor Decisions

BCBS Sample ASO Agreement

Resolution

CITY COMMISSION REGULAR MTG

(8)(d)

Meeting Date:

09/04/2024

AWARD RECOMMENDATION FOR RFP 2024-458 DISASTER RECOVERY CONSULTANT SERVICES

Submitted For:

Gwynetheia Pope, Purchasing

Submitted By:

Gwynetheia Pope, Purchasing

Department:

Purchasing

Information

ACTION REQUEST

AWARD RECOMMENDATION FOR RFP 2024-458 DISASTER RECOVERY CONSULTANT SERVICES

BACKGROUND (Brief Summary)

The objective of this Request for Proposals was to obtain a qualified firm to handle our Cost Recovery efforts with FEMA and TDEM on behalf of the City of Texas City. The project was released on 7/29/24 and opened publicly on 8/21at 2pm. We received solicitation packages from five (5) qualified agencies. Each was scored on 5 major components by an Evaluation Committee of City employees.

RECOMMENDATION

The Purchasing Department recommends awarding the contract to Witt O'Brien's of Houston, Texas. Across the board with the committee, they scored the highest, offering the City years of experience in handling Disaster Recovery. The term of this agreement is for three (3) years, with two (2) one (1) year renewal options.

Fiscal Impact

Attachments

Award Recommendation

Resolution

CITY COMMISSION REGULAR MTG

(8)(e)

Meeting Date:

09/04/2024

Submitted By:

Rhomari Leigh, City Secretary

Department:

City Secretary

Information

ACTION REQUEST

Consider and take action on Resolution No. 2024-107, casting the City of Texas City Ballot for TML Region 14 Board Director. (Mayor's Office)

BACKGROUND (Brief Summary)

Previously, elections for regional directors were held at regional meetings. After changes to the TML Constitution were approved last year, these elections are now administered by TML centrally.

TML has 15 regions, and each has a seat on the Board. During even-numbered years, the even-numbered regions are up for election. Terms are two years, and new terms will begin on October 11, 2024, upon adjournment of the TML Annual Conference and end on November 13, 2026, upon adjournment of the TML Annual Conference.

RECOMMENDATION

It is the Mayor's recommendation to cast a ballot selection for Joe Zimmerman (Incumbent).

Fiscal Impact

Attachments

attachment

Resolution