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HomeMy WebLinkAbout2005-04-04 Special Called Meeting in Conjunction with Excel Plant Managers and Other Potential Industry Representatives MINUTES OF SPECIAL CALLED COUNCIL MEETING HELD ON APRIL 4, 2005 Due to no quorum of Council being present, only informal discussions were held and no action was taken. Exel Staff Present: Vernon W. Schaefer, Director of Operations Chemical/Industrial - Exel, William E. Martin, Senior Director of Operations Chemical/Industrial and Phil Steelman, General Manager. City Staff Present: City Manager, Debra Feazelle and City Secretary, Martha A. Gillett. Council Present: Mayor Alton E. Porter, District 1, Mike Mosteit, District 4 Council Member Tommy Moser and Councilmember At Large B Barry Beasley. General Manager Phil Steelman provided the group with an overview of Exel and its operations. In addition, he explained the safety procedures while visiting on site. The company is a $14 Billion Dollar company that employs 110,000 - 120,000 staff members world wide. Mr. Steelman further stated concern regarding shipping and transportations costs, long term viability and related issues and he hoped we could fmd a solution for the legislative bill matter at hand. Mr. Steelman reminded the group the bill before the legislature currently in House was the bill regarding "Load Heavy" of trucks carrying containers. The bill would help industry maintain what they currently have in place and allow them to move forward and be competitive. . Outlined below is a recap of general discussions: Phil Steelman noted the bill would help Exel's customers. Councilmember Barry Beasley inquired as to why the bill is important to industry? Exel representatives noted their customers must be more competitive in the United States or marketlbusiness would move overseas. Labor costs are higher in the United States. Most other countries allow transport of 25 metric tons. Other areas in the Unites States also allow transport of 25 metric tons. Overall larger loads allow result in more freight moved in less moves. That results in astronomical savings. In addition, this would allow larger exports on ships. The advantage would result in less trucks on the road, increased safety and a reduction in air pollution. They further noted they want to remain competitive and keep the business in our area. Page 2 A successful example they used was the Charleston, North Carolina area. Councilmember Barry Beasley inquired as to how they can get away with hauling larger loads on State and Federal Highways due to regulations: Exel responded they can cross county roads and avoid federal highways. Mayor Porter noted the concerns the City of La Porte has with the increased load limits. He noted this would add additional costs to the taxpayers of La Porte. He noted trucks now are already exceeding the current limits and an increase would result in an even greater problem. The increase in the loads, would result in increased infrastructure costs. Mayor further noted economics and safety our most important considerations. Phil Steelman noted reputable companies will not exceed the load limits. Vernon Schaefer noted many companies will move away and take their business to areas where they can avoid municipal regulations. They will even move out of the United States to avoid safety and E.P.A. issues. He futher noted that 25 metric tons is an international standard. If you get over this limit, no one is able to handle the load. Phil Steelman noted this bill got to the Legislature without a lot of data. He noted the data can and should be gathered for consideration. Mayor Porter asked whether or not this issue has been approached at the federal level? Phil Steelman responded that Federal matters govern bridges and all bridges would have to be rebuilt. That is why this is on a local level issue. Mayor Porter informed the group it is not the intention of the City of La Porte to run off any businesses. William E. Martin noted it is critical to keep plastics viable in the U.S. Councilmember Mike Mosteit noted a concern is the bill does not include any policy ability and we are currently limited with minimal D.O.T. regulations. He noted that industry must step forward and take control for us to be able to sell to our citizens. They are the people picking up the infrastructure costs. Mayor Porter/Barry Beasley noted this matter should have been discussed before the bill was introduced. Page 3 Barry Beasley noted the bill should include impacts on businesses for carrying excess limits and violations of safety regulations. He doesn't think they could be included in the bill at this point. Mayor Porter noted we are sensitive to industry and don't want to lose them. William Martin noted increased water transport may be the answer. It would cut down on traffic and E.P.A. issues. Phil Steelman suggested we get the statistics together and continue to meet on this matter. William Martin suggested we approach A.C.C. and American Plastics Council to see if they are willing to assist in the infrastructure costs. Barry Beasley suggested Mayor Porter appoint a Council Committee to brainstorm on transportation issues. City Manager Debra Feazelle noted the any permit fees should be set to accommodate the designated route. In conclusion, all parties agreed to work in the "off season" and prepare a bill that, hopefully, all parties could support in 2007 legislature session. This group would consist of Mayor and City Council, Industry, citizens, port and other interested parties. Phil Steelman in wrapping up encouraged we pull together all interested parties and work together for a solution. He noted it was important to have people working on this issue that the citizens trust. He noted Excel was willing to help with the process. Meeting discussions ended at 5:37 p.m. Respectully Submitted, l1(!apj;~~ Martha A. Gillett, TRMC City Secretary Approved: ~y~ Mayor Alton E. Porter April 11, 2005 • • Back-up not required for this item • O~ . A ~ ~" 09 City of La Porte a ~ `~ ~~ Interoffice Memorandum To: Mayor and.Cowncil From: Debra Feaaelles City.::Manager Date: Apri11, 2005 Subject: Special Called Meeting Plant Manager, Paul Steelman: has requestied a meeting to discx~ss .shipping and transportation costs, long-term viability, and-nelatect issues. Specifically, this is in response to- HB 1.882 and~~our opposition. Mayor Pro-Tem Beasley and I have both had phone~c~n~cecsatiocrs.with: Paul~.Steelman. Mayor Porter has agreed to receive report and discuss his-information. Mayor Pro-Tem Beasley, met Thursday with Representative Wayne Smith and ~Industry~ Lobbyist regartfing-this bill. t;ouncilman Mosteit and~tount~lman-Moser:have both expressed keen interest on this issue. Other City trouncilmembers~ may also have~ooncems. We ane~ posted so any. or all may attend. I will be leaving at 3:30-3:45 pm tnmr~ City Hali .the day of the' meeting if anyone cants to carpool. Directions are on the agenda. Please call if you have further. ques~ons.