SUBCOMMITTEE ON AGRICULTURE, RURAL AFFAIRS AND COASTAL RESOURCES Friday, June 9, 2006 9:00 a.m. City Council Chambers, Corpus Christi, TX ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Subcommittee on Agriculture, Rural Affairs and Coastal Resources was held on Friday, June 9, 2006, in the City Council Chambers, Corpus Christi, TX ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Craig Estes None Senator Juan Hinojosa Senator Mike Jackson ***** The chair called the meeting to order at 9:00 a.m. There being a quorum present, the following business was transacted: Chairman Estes thanked Senator Hinojosa and his staff for coordinating the hearing in Corpus Christi and welcomed the public who were in attendance. Chairman Estes asked that the minutes from the May 1, 2006, hearing be approved. Senator Jackson so moved, and there was no objection. Chairman Estes called on Corpus Christi Mayor, Henry Garrett, to say a few words. Chairman Estes then recognized Representative Vilma Luna, Corpus Christi, who was in attendance. Representative Luna addressed the Senate Subcommittee concerning the importance of cooperation between local and state entities in making the most of CEPRA funding. Chairman Estes recognized Senator Kyle Janek of Houston as a special guest at the hearing. Senator Janek discussed his background and experience with the Coastal Erosion Planning and Response Program (CEPRA) and how vital continuation and funding for the program was for his district. He pointed out CEPRA should be funded from a combination of several funding sources, and should be more effectively used to draw down federal funds. Chairman Estes asked how much federal money was left after each funding cycle and Senator Janek responded that Texas only uses 1% of the federal money available. He then pointed out that money raised by state parks should stay in the state parks. Chairman Estes then began with the invited testimony portion of the hearing addressing Interim Charge 2: Study the effectiveness of the Coastal Erosion Planning and Response Program (CEPRA) and make recommendations to improve the program, identify funding sources, and determine the roles of federal and local governments in erosion response. Mayor Henry Garrett was recalled to testify on behalf of the City of Corpus Christi. Mayor Garrett explained the history of the Packery Channel dredging project and its impact on Corpus Christi and North Padre Island. He highlighted the total benefit of CEPRA to Corpus Christi and explained CEPRA funding was used for the Packery Channel project. In addition to Mayor Garrett's remarks, Tom Utter, also with the City of Corpus Christi, spoke and presented a slide presentation about the Packery Channel project and the importance of CEPRA funding in getting the project completed. Senator Janek and Senator Hinojosa discussed the cost of upkeep on the Packery Channel. Chairman Estes then called the Honorable Chuck Cazales, County Commissioner of Nueces County to testify. Commissioner Cazales represents the north eastern part of Nueces County, including parts of Port Aransas and North Padre Island. He spoke of some of the opposition to the proposed closure of the beach to vehicle traffic. He also drew attention to the importance of seaweed in mitigating erosion. Commissioner Cazales then addressed the safety of the island residents and pointed out that we have just entered hurricane season. The next witnesses were Michael Kovacs, City Manager of Port Aransas, and the Honorable Claude Brown, newly elected Mayor of Port Aransas. Michael Kovacs testified that the beaches in Port Aransas were accreting and that the City of Port Aransas was against any sort of Hotel/Motel tax. Senator Hinojosa discussed the idea of using a mixture of funds for CEPRA including a property tax. Mayor Brown reiterated the City's opposition to a Hotel/Motel tax and stated funding should come from General Revenue. Chairman Estes then called Ms. Kelly Hamby, City Secretary for the Village of Surfside and member of Brazoria County Shoreline Restoration Task Force. Ms. Hamby provided testimony on the problems facing a small town on the Gulf and how CEPRA and other grants were critical to responding to erosion and clean up after tropical storms. She started by claiming the Freeport Channel was a major source of erosion in her area. She then stated CEPRA should be used to address property loss due to flooding and protection from loss of life during hurricanes first. She asked for an independent review of CEPRA funding, stated that the CEPRA program needs work, and pointed out that there might be a conflict of interest as the GLO is serves as the grant administrator and fulfills a regulatory role at the same time. The next witnesses were Michael Perez and Nelda Olivo, both with the Port of Corpus Christi. Michael Perez agreed CEPRA can benefit from additional funding, but opposed any CEPRA tax on ports. He stated erosion is not due to maritime commerce and that any additional fee will push shippers to ports outside of Texas. He concluded by pointing out that ports receive no funding from the state. Senator Jackson and Mr. Perez discussed an oil spill in the port. Mr. Perez pointed out that it was not a spill, but an overflow. Nelda Olivo discussed the dockage fee that was brought up during the 79th Regular Session. She pointed out that thousands of ships use the port of Corpus Christi. They were the last invited speakers. Ms. Diane Falcioni with the Port of Galveston testified about the different ideas for CEPRA funding that would depend on the ports. She then discussed the budget of the Port of Galveston. Senator Jackson asked about Homeland Security grants the port has received and then asked about the budget. Haskell Simon from Bay City testified about the importance of CEPRA funding to rural coastal counties without the resources of metropolitan counties. He spoke specifically about Matagorda County. Pat Suter Chairwoman of the Coastal Bend Sierra Club testified about the unintended consequences of methods such as jetties to keep channels open. She also addressed the erosion caused by cleaning beaches and the building of seawalls. Johnny French, retired fish and wildlife biologist, discussed his concerns for the Piping Plover and its protected habitat on North Padre Island. He expressed concern for the designated critical habitat, TX-7, and the GLO's recently filed suit concerning TX-7. He felt that closing the beach south of Packery Chanel to vehicles would adversely affect TX-7 and the Piping Plover. Sally Davenport, Coastal Planner, from Austin testified. She helped draft the original CEPRA legislation and believes CEPRA needs more funding in order to fund long-term projects. She also pointed out the importance of finding reliable sand sources in the state. Ray Allen with the Coastal Bend Bays and Estuaries Program testified about the importance of a healthy wetland system to sustain the eco-system along the coast of Texas. He stated that it is often a challenge for local entities to provide the local match required by CEPRA. He addressed the problem of reservoirs capturing sediment that should be entering the state's bays and estuaries and claimed that in some places along the coast, bird populations are down by 90%. After the conclusion of all the testimony, Senator Jackson moved that the Subcommittee stand at recess, subject to the call of the Chairman. It was so ordered and the hearing ended at 11:30 a.m. _______________________________ Senator Craig Estes, Chair _______________________________ Kingsbery Otto, Clerk