MALE_1: SO LONG AS IS THE ONLY WAY I COMMUNICATE WITH PEOPLE DOWN THE OTHER END.
[00:00:02]
FEMALE_1: WE CAN'T HEAR YOU.[1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]
CRAIG BROWN: [NOISE] GOOD MORNING, EVERYONE.I FEEL LIKE I HAVE TO SHOUT WE'VE GOT AN EXTRA LONG TABLE TODAY.
WE'VE GOT THE GLO WITH THIS AT 9 O'CLOCK, SO WE HAVE EXTRA ROOM FOR THEM AS THEY ARRIVE.
SO I'M A LITTLE FURTHER AWAY FROM EVERYBODY, BUT GOOD MORNING EVERYBODY.
IT IS 8:01 A.M, AND WE ARE NOW- I'M GOING TO OFFICIALLY CALL THE WORKSHOP FOR JULY 27TH FOR THE CITY COUNCIL FOR THE CITY OF GALVESTON TO ORDER.
I WANT TO WELCOME EVERYBODY THAT'S HERE THIS MORNING, THANK YOU FOR STAY UP OF COURSE, THANKS FOR BEING HERE.
COUNCIL, NICE TO SEE EVERYBODY OR MOST OF THE COUNCIL MEMBERS, AND ALSO THANK YOU FOR THOSE THAT ARE IN THE COMMUNITY THAT MAY BE WATCHING.
WE'RE GLAD TO HAVE YOU WITH US THIS EARLY, THIS MORNING.
JANELLE, LET'S HAVE A ROLL-CALL, PLEASE.
JANELLE WILLIAMS: CRAIG BROWN.
JANELLE WILLIAMS: COUNCIL MEMBER COLLINS.
JANELLE WILLIAMS: COUNCIL MEMBER FINKLEA.
JANELLE WILLIAMS: COUNCIL MEMBER BOUVIER.
JANELLE WILLIAMS: COUNCIL MEMBER LISTOWSKI.
JANELLE WILLIAMS: COUNCIL MEMBER ROBB.
JANELLE WILLIAMS: COUNCIL MEMBER LEWIS IS ABSENT TODAY.
[3.A. Clarification Of Consent And Regular City Council Agenda Items - This Is An Opportunity For City Council To Ask Questions Of Staff On Consent And Regular Agenda Items (45 Min)]
MARIE ROBB: SHE'S JUST GOING TO TRY TO TALK BY ZOOM.WE HAVE THE MAJORITY OF COUNCIL HERE TODAY.
WE'RE GOING TO GO TO ITEM 3A FIRST, PLEASE JANELLE.
JANELLE WILLIAMS: 3A, CLARIFICATION OF THE FACILITIES OF REGULAR CITY COUNCIL'S AGENDA ITEMS .
THIS IS AN OPPORTUNITY FOR CITY COUNCIL TO ASK QUESTIONS OF STAFF ON REGULAR AGENDAS.
CRAIG BROWN: BEFORE WE START OUR CLARIFICATION.
ITEM 10E COUNCIL, WILL BE PULLED TODAY AND THAT WILL BE COME BACK TO US AT A FUTURE MEETING.
WE WILL PROBABLY WORKSHOP THAT ITEM COMING UP AT OUR NEXT MEETING.
MARIE ROBB: I HAVE ANOTHER HOUSEKEEPING ITEM.
MARIE ROBB: I NEED TO ABSTAIN FROM 11N AND 11O, I HAVE A CONFLICT OF INTERESTS.
CRAIG BROWN: COUNCILWOMAN ROBB WILL BE ABSTAINING IN OUR REGULAR MEETING FROM ITEM 11N AND 11O.
JOHN PAUL LISTOWSKI: I GOT A CONFLICT AS WELL.
JOHN PAUL LISTOWSKI: ONE IS 8B.
CRAIG BROWN: B? JOHN PAUL LISTOWSKI: YES.
COUNCILMAN LISTOWSKI WILL BE ABSTAINING.
CRAIG BROWN: COUNCILMAN LISTOWSKI WILL BE DECLARING A CONFLICT AND ABSTAINING ON ITEM 8C THIS AFTERNOON.
LET'S GO AHEAD AND START OUR CLARIFICATION OF ITEMS. COUNCILMAN BOUVIER, SIR? MICHAEL BOUVIER: 10C.
MICHAEL BOUVIER: WHICH IS TWO-HOUR PARKING, AMONGST CHURCH STREET.
MARIE ROBB: THERE'S A BUNCH OF PARKING ONES BECAUSE I HAVE B-D, SO MAYBE WE CAN COVER ALL.
I JUST WANTED TO KNOW I GUESS WHY WE'RE DOING THE TWO-HOUR PARKING AT THIS LOCATION FOR THAT AREA? ROBERT WINIECKE: 10C IS THE ONE MAXWELL: ROBERT, IF YOU WOULDN'T MIND, COME ON UP AND HAVE A SEAT SINCE WE'RE GOING TO TALK ABOUT THIS PARKING.
FOR THE PUBLIC, WOULD YOU IDENTIFY YOURSELF, SIR, AND YOUR TITLE? ROBERT WINIECKE: ROBERT WINIECKE, DIRECTOR OF INFRASTRUCTURE AND ENGINEERING.
SO WE RECEIVED A COMPLAINT FROM THE CHURCH THAT THEY'RE DOING SOME MORE ACTIVITIES AND THEY'RE HAVING ISSUES WITH HEAVY PARKING IN FRONT OF THE CHURCH DURING THE TIME OF THE ACTIVITY.
THEY'VE ASKED TO GO AHEAD AND DO TWO-HOUR PARKING FROM, I BELIEVE IT'S 08:00 A.M.
[OVERLAPPING] TO MAKE REAL CLEAR.
IF I'D NEVER HAD TO DO A PARKING RULE, I WOULD NEVER DO A PARKING RULE.
BUT EVERY PARKING RULE WE HAVE IS AT THE REQUEST OF THE PEOPLE IN THAT AREA TO SOLVE AN ISSUE FOR THEM.
SAME THING WITH PAID PARKING DOWNTOWN.
WE DO THAT AT THE REQUEST OF THE DOWNTOWN BUSINESSES TO CREATE TURNOVER.
SO WHEN YOU SEE THESE CHANGES ON HERE, IT'S NEVER US TRYING TO CHANGE IT.
[00:05:04]
IT'S ALMOST ALWAYS THE RESULT OF SOMEBODY SAYING, HEY, CAN WE CHANGE THIS, CAN WE CHANGE THAT, CAN WE BETTER FIT THIS FOR OUR NEIGHBORHOOD, CAN WE BETTER DO THIS? IT'S ALWAYS AT THE BEHEST OF THE PEOPLE IN THE AREA.RARELY IS IT EVER STAFF DRIVEN.
CRAIG BROWN: WE HAVE 10D ALSO.
ROBERT WINIECKE: B, THAT'S FINE.
CRAIG BROWN: I THINK THIS ONE HERE.
ROBERT WINIECKE: SORRY, I MIGHT HAVE MISSPOKE ON THAT ONE COUNCIL MEMBERS.
DAVID COLLINS: THAT'S THE ONE YOU WE JUST DID.
ROBERT WINIECKE: YEAH, I DID C.
10 D IS A SECTION ON 18TH STREET BETWEEN MECHANIC AND MARKET STREET WHERE CURRENTLY THERE IS A TWO-HOUR PARKING.
SO THEY'RE ASKING TO GO OUT AND HAVE THAT CHANGED ON THE EAST SIDE OF THE ROAD TO BEING A TWO-HOUR PARKING WITH A RESIDENTIAL PERMANENT EXEMPTION.
THERE'S RESIDENCES ON, THE EAST END OF THE STREET THAT WITHOUT THAT, THEY'RE NOT ABLE TO GO AHEAD AND PARK IN FRONT OF THE RESIDENCE FOR MORE THAN TWO HOURS .
[OVERLAPPING] BUSINESSES IN THERE, SO SOMETIMES THOSE SPOTS GET TAKEN.
WE GET THE NEED FOR TWO-HOUR PARKING, BUT WE ALSO GET THE NEED THAT THE RESIDENTS MIGHT NEED TO PARK IN FRONT OF THEIR HOUSE.
BRIAN MAXWELL: WAS THERE ANOTHER PARKING? [OVERLAPPING] ROBERT WINIECKE: 10D.
THEY'RE IN THE WHICH IS THE EASTERN ENTRANCE.
THERE IS A NEW BUSINESS THAT'S THRIVING VERY WELL.
HOWEVER, THE PATRONS ARE MONOPOLIZING BOTH SIDES OF THE STREET.
THEY ARE STREET DOWN, AND BEING SO CLOSE TO 3-5, IT'S PRESENTING A SAFETY CONCERN WITH VEHICLES COMING IN OFF THE HIGHWAY.
MARIE ROBB: WE'RE GOING TO PUT THE NO PARKING SIGN THEN? ROBERT WINIECKE: WE INTEND TO PUT NO PARKING SIGN.
ROBERT WINIECKE: ON THE EAST SIDE OF THE STREET.
BRIAN MAXWELL: YOU'RE GOING TO PAINT THEM ON ROCKS? [LAUGHTER] MICHAEL BOUVIER: HOW ARE YOU GOING TO START THAT? THAT'S WHAT I WANT TO KNOW.
MARIE ROBB: I HAVE BEEN ON THAT MEETING ON THAT TIME, THROUGH IT, BY THE WAY.
ROBERT WINIECKE: THAT'S WHAT I WANTED ON THIS ONE.
BRIAN MAXWELL: THANK YOU VERY MUCH.
MICHAEL BOUVIER: WELL, ROBB BEFORE YOU LEAVE, I'VE GOT A QUESTION ON THIS AS WELL, JUST A GLOBAL OBSERVATION.
I KNOW THAT THIS IS A VERY REACTIVE PROCESS.
MR. MAXWELL, BASED UPON INPUT FROM WALKER RESIDENCES, IS THERE ANY CONCESSION OR IDEA ABOUT POSSIBLY LOOKING AT A COMPREHENSIVE PARKING MANAGEMENT PLAN WHERE YOU CAN EVALUATE THIS ISLAND WIDE OR BY? ROBERT WINIECKE: WE COULD, IT'S SO DIFFERENT IN EVERY AREA AND WE TRY TO ADDRESS IT.
THAT PROBABLY WOULDN'T BE A BAD IDEA BECAUSE I THINK WE HAVE SOME OF THESE THAT HAVE GONE STALE.
WE HAVE PARKING RESTRICTIONS IN AREAS THAT PROBABLY DON'T NEED PARKING RESTRICTIONS ANYMORE.
MICHAEL BOUVIER: IT'S FURTHER DISCUSSION? ROBERT WINIECKE: YEAH.
MARIE ROBB: CAN I HAVE ONE? IF WE'RE GOING TO LOOK AT PARKING THINGS.
CAN YOU MAKE IT ONCE YOU'VE PARKED, THAT YOU CAN ADD A HALF-AN-HOUR TO IT, NOT AN HOUR.
YOU COULD DO IT IN OTHER CITIES BECAUSE IT'S SO ANNOYING WHEN YOU'RE AT A RESTAURANT AND YOU'RE NOT QUITE FINISHED AND YOU HAVE TO BUY A WHOLE OTHER HOUR OF PARKING INSTEAD OF JUST BUYING 30 MINUTES.
ROBERT WINIECKE: WE CAN CERTAINLY LOOK AND MAKE SURE SEE WHAT WE CAN DO.
MARIE ROBB: I'VE USED THAT SYSTEM IN OTHER CITIES AND THEY ALLOW YOU TO BUY 30 MINUTES.
BRIAN MAXWELL: I THINK ALL OF US HAVE SOME QUESTIONS ABOUT PARKING.
THIS IS A LITTLE OFF OF OUR TOPIC HERE.
JANELLE, IF YOU WOULDN'T WILL BRIAN, WHEN WE'RE READY TO PUT THAT ON, LET'S CARRY ON HIS WORKSHOP PROBLEM.
ROBERT WINIECKE: NO PROBLEM AT ALL.
BRIAN MAXWELL: YEAH, VERY GOOD.
DAVID, YOU HAD YOUR HAND UP, SIR.
MICHAEL BOUVIER: ARE WE TAKING IN CONSIDERATION INSTEAD OF JUST TEMPORARY INFRASTRUCTURE? ARE WE LOOKING AT MAYBE PULLING IN THE PERMANENT STUBS SO WE DON'T HAVE TO REDO THIS TEMPORARY CERTAINLY? BRIAN MAXWELL: JUST THE BEACH SURVEYS.
MARIE ROBB: THIS IS BEACH SURVEYS.
MIKE LOFTIN: THIS IS BEACH SURVEY.
MICHAEL BOUVIER: WHICH ONE? BRIAN MAXWELL: THAT'S WHY I LOOK CONFUSED [OVERLAPPING].
MARIE ROBB: THEY DON'T USE STUBS.
[OVERLAPPING] [LAUGHTER] MICHAEL BOUVIER: OH, YEAH.
BRIAN MAXWELL: WHAT WAS THE QUESTION AGAIN, MIKE? MICHAEL BOUVIER: WE'RE HAVING ENGINEERING SERVICE DO TEMPORARY FACILITIES FOR STUART BEACH.
IS THIS GOING TO ACTUALLY BE MORE THAN JUST TEMPORARY OR ARE WE GOING TO BRING IN THE
[00:10:01]
MAIN STUBS AND EVERYTHING FOR OUR ACTUAL.BRIAN MAXWELL: WHAT WE'RE GOING TO DO IS GET A GOOD IDEA OF WHAT OUR CAPACITIES ARE OUT THERE, WHAT OUR ABILITIES ARE.
TRAVEL, ALL THOSE TYPE THINGS.
THAT'S PART OF WHAT THIS WHOLE THING IS GOING TO DO.
SO WE'RE NOT JUST GETTING READY FOR THE TEMPORARY, BUT WE'RE PREPPING FOR THE PERMANENT.
MICHAEL BOUVIER: TWENTY FOUR WILL COVER A LOT MORE THAN JUST A TEMPORARY.
DUDLEY ANDERSON: IT'S NOT A LOT MORE.
WE WANT IT TO BE PERMANENT TO THE TEMPORARY.
SO IT WILL BE TUFF A LITTLE BIT FOR CAPACITY.
MARIE ROBB: I DO HAVE A QUESTION ON 11J.
MICHAEL BOUVIER: SO ARE WE LOOKING AT POWER, SEWER, AND WATER? J.
MICHAEL BOUVIER: SEEMS LIKE A LOT OF MONEY FOR TEMPORARY FOR SOMEBODY AT ENGINEERING.
DUDLEY ANDERSON: WELL, IT'S NOT JUST THAT, IT'S THE SITE WORK IT'S INVOLVED IN PARKING THOSE THINGS, ALL OF THAT STUFF.
MARIE ROBB: I HAVE A QUESTION ON 11J, NOT THAT.
JOHN PAUL LISTOWSKI: 11H RIGHT NOW? MICHAEL BOUVIER: YES.
I'M PRETTY MUCH DONE AFTER THAT.
BRIAN MAXWELL: MIKE YOU FINISHED YOUR PART? MICHAEL BOUVIER: YEAH, I'M DONE.
JOHN PAUL LISTOWSKI: YOU FINISHED THIS LAYOUT FOR THE TEMPORARY FACILITIES? J.
JOHN PAUL LISTOWSKI: ARE YOU WORKING ON A LAYOUT FOR STUART BEACH? J.
DUDLEY ANDERSON: RIGHT NOW, WE'RE JUST FOCUSING ON THAT CORNER.
RIGHT NOW STUART BEACH AS A WHOLE IS JUST BASICALLY PARKING.
BRIAN MAXWELL: WE HAVE THIS DISCUSSION EVERY MEETING JP, ONCE WE GET THIS TEMPORARY SET WE'RE GOING TO START WORKING ON PETER'S PERMANENT FACILITY ON THE BEACH AND THAT'S GOING TO INCLUDE THE OVERALL PLAN FOR THE PARK.
WE SAID THAT WE GET THAT TO YOU IN THE FALL.
DUDLEY ANDERSON: THAT'S IN AN RFQ IS GOING OUT.
BRIAN MAXWELL: IF STAFF IS GOING TO REPORT BACK TO US, I THINK OCTOBER, SOMEWHERE IN THERE ON A COMPLETE PLAN FOR STUART BEACH.
DUDLEY ANDERSON: WE'LL KEEP YOU UP TO DATE WITH A MONTHLY? BRIAN MAXWELL: YES, SIR.
JOHN PAUL LISTOWSKI: DID YOU SAY THAT THEY ENGINEER HERE IS ALSO LOOKING AT PERMANENT FACILITIES WITHIN THIS CLOSING FOR 11H? J.
DUDLEY ANDERSON: FOR THAT SPECIFIC AREA.
BRIAN MAXWELL: PERMANENT UTILITIES FOR THAT AREA? YES.
JOHN PAUL LISTOWSKI: THAT AREA, MEANING? BRIAN MAXWELL: WHERE WE'RE PUTTING THE TEMPORARY STRUCTURES.
DUDLEY ANDERSON: VERY CLOSE TO THE LEFT SIDE.
BRIAN MAXWELL: CLOSE TO THE ENTRANCE.
JOHN PAUL LISTOWSKI: PERMANENT FACILITIES FOR THE TEMPORARY FACILITY.
WE NEED TO DO ALL THINGS TO GET TO THE TEMPORARY SPOT.
BRIAN MAXWELL: WE DON'T EVEN KNOW WHAT THE CONDITION IS OUT THERE.
WHAT THIS GUY IS GOING TO DO IS TELL US WHAT WE'VE GOT, WHERE IT'S AT.
WE'RE NOT PIN-POINTING EXACTLY WHERE EVERYTHING IS GOING TO GO, BUT WE'RE GOING TO HAVE UTILITIES IN THE AREA THAT WE CAN TIE INTO.
BECAUSE WE KNOW THAT'S GOING TO BE THE GENERAL AREA FOR THE PERMANENT LOCATION FOR WHAT WE'RE DOING.
JOHN PAUL LISTOWSKI: WHEREVER YOU ARE WE'RE GOING TO 11G.
WHERE WOULD YOU EXTEND BUDGET FUNDS? HOW MUCH WAS YOUR BUDGET FUNDS? J.
DUDLEY ANDERSON: I'M NOT SURE.
DUDLEY ANDERSON: SOME THIS YEAR AND SOME NEXT YEAR.
BRIAN MAXWELL: PETER HAD THE MONEY IN HIS BUDGET.
HE'S THE ONE THAT TOLD US ABOUT IT.
800 AND SOMETHING THOUSAND, I BELIEVE.
JOHN PAUL LISTOWSKI: WHY DON'T WE FIND THEM THIS? J.
DUDLEY ANDERSON: I'M NOT SURE.
WE CAN GET YOU THE BUDGET NUMBER.
I'M NOT SURE WHAT THE EXACT COST OF THE ITEMS IS.
BUT WE CAN GET YOU THAT BUDGET.
JOHN PAUL LISTOWSKI: THAT WOULD BE NICE.
IMAGINE A MORE JUST LET US KNOW WHAT.
BRIAN MAXWELL: WE HAVE A GENERAL IDEA OF WHAT THE COST OF THE TRAILERS ARE.
THE MAIN THING IS WE'RE TRYING TO GET AHEAD OF THIS BECAUSE WHAT'S GOING TO HAPPEN IS WE'RE GOING TO KEEP JERKING AROUND WITH THIS.
THEN ALL OF A SUDDEN AT THE END WE'RE GOING TO SAY, OH, NOW PETER DON'T HAVE HIS TRAILERS AND WE'RE TRYING TO GET THEM ORDERED SO HE HAS THEM FOR NEXT YEAR.
BECAUSE THE VEINS COMING DOWN IN THE FALL.
JOHN PAUL LISTOWSKI: WITH NUMBERS, YOU KNOW WHAT THEIR BUDGET IS, IT'D BE NICE IF THAT.
BRIAN MAXWELL: EIGHT HUNDRED AND SOMETHING THOUSAND I BELIEVE.
DUDLEY ANDERSON: I'M NOT SURE THE EXACT NUMBERS.
ANY FURTHER QUESTIONS ON, THAT'S 11G.
MARIE ROBB: I HAD QUESTIONS ON 11J.
BRIAN MAXWELL: EXCUSE ME? MARIE ROBB: 11J WOULD BE KYLE.
BRIAN MAXWELL: MIKE, DID YOU HAVE ANY OTHER QUESTIONS ON THESE? MICHAEL BOUVIER: NO.
[00:15:01]
I'M GOOD.KYLE, IF YOU INTRODUCE YOURSELF, PLEASE, SIR.
SINCE WE'RE MOVING ALONG, MARIA, I'M GOING TO GO TO YOU ON YOUR QUESTIONS 11J.
KYLE CLARK: KYLE CLARK, COASTAL RESOURCES MANAGER.
MARIE ROBB: I GUESS THE WAY THAT ONE IS WRITTEN A RESOLUTION AND OR LOCAL PARK BOARD COASTAL SURVEY ISN'T REALLY ALL LIKE THE CITY OF GALVESTON'S SURVEYS.
KYLE CLARK: WELL, THIS IS AN INNER LOCAL BECAUSE THE PARK BOARD IS PAYING FOR A PORTION OF THE SURVEYS.
THEY ARE PAYING FOR THE PORTION OF THE SURVEYS IN FRONT OF THE ENGINEERED BEACHES.
MARIE ROBB: THE HOT TAXES OR THE BEACH? KYLE CLARK: THE ENGINEERED BEACHES THAT'S WHERE THE PARK BOARD IS PAYING.
SO DOWN THERE BECAUSE SINCE THEY'RE ENGINEERED BEACHES, THEY'RE GOING OUT TO DEPTH OF CLOSURE, SO THEY'RE PAYING FOR THAT.
MARIE ROBB: WHAT WE NEED TO START LOOKING AT AND IN THE FUTURE BUDGET, SINCE WE KNOW WILL BE GETTING A NOURISHMENT, IS CHANGING THE WHOLE THING TO DEPTH OF CLOSURE.
KYLE CLARK: WHEN WE DO THE NOURISHMENT FROM EIGHT MILE TO 13 MILE ROAD IN THE FUTURE, THOSE WILL BE INCLUDED IN OUR ENGINEERED BEACHES FOR DEPTH OF CLOSURE.
MARIE ROBB: OR WHAT WE SHOULD REALLY IN MY OPINION LOOK AT AT THAT POINT, IS PERHAPS DOING DEPTH OF CLOSURE ALL THE WAY DOWN THE ISLAND, EVEN IF WE SPREAD THEM OUT A LITTLE BIT MORE.
BECAUSE WE KNOW THAT SAND'S GOT TO MOVE FOR US.
SO WOULD ALLOW US TO HAVE A MORE ACCURATE EROSION OR ACCRETION RATE.
KYLE CLARK: WE CAN LOOK INTO THAT.
ANY OTHER ITEMS? MARIE ROBB: I DO.
MARIE ROBB: YOU KNOW HOW I ALWAYS LOVE WHEN WE GET WAY HIGH UP.
[BACKGROUND] I WAS READING THAT THING AND IT WAS RUST IN THE WATER OR? TRINO PEDRAZA: NO, WE HAVE TWO PIECES OF INFRASTRUCTURE THAT WE'RE CURRENTLY DEALING WITH.
MARIE ROBB: SLOW DOWN, SAY YOUR NAME.
BRIAN MAXWELL: IDENTIFY YOURSELF TRINO, IF YOU WOULD, PLEASE, SIR.
TRINO PEDRAZA: MY NAME IS TRINO PEDRAZA, EXECUTIVE DIRECTOR OF PUBLIC WORKS AND UTILITIES.
SO THERE ARE TWO SEPARATE ITEMS ON THAT LIST.
THE FIRST IS GOING TO BE 10 MILE ELEVATED STORAGE TANKS.
ELEVATED STORAGE TANK IS GOING OUT FOR BID NEXT MONTH AND IT'S GOING TO BE COMPLETELY DEMOLISHED AND REBUILT TO MATCH MODERN STANDARDS.
IF YOU WERE TO LOOK AT THE OUTSIDE OF THE TANK ALL THE WAY TO THE TOP, IT HAS RUSTED AND IT'S CORRODED.
TECHNICALLY, WE'RE SUPPOSED TO MAINTAIN THE PAINT JOB, BUT IN THIS CASE, BECAUSE WE ARE GOING TO DEMOLISH IT AND REBUILD IT, WE'VE OPTED TO HOLD OFF UNTIL THE TIME COMES.
IT JUST TOOK LONGER FOR THAT TIME TO COME.
QC GOT FRUSTRATED WITH IT SO A PIECE OF THE FINE, IS THEM MAKING SURE THAT WE'RE GOING TO DO THAT JOB AND THAT WE'RE GOING TO BE IN COMMUNICATION WITH THEM FROM THIS POINT FORWARD ON OUR SCHEDULE TO PUSH IT FORWARD.
MARIE ROBB: SO JUST ON THE INSIDE? TRINO PEDRAZA: THERE'S NOT RUST ON THE INSIDE.
WE HAVE TO DO ANNUAL TANK INSPECTIONS.
SO ON THIS PARTICULAR ONE IS ALL ON THE OUTSIDE OF THE TANK.
AND THE OTHER ONE WAS? TRINO PEDRAZA: SO THE OTHER ONE, AS YOU KNOW, YOU'VE SEEN IT QUITE A BIT IN YOUR DISTRICT.
WE HAVE A PRETTY ROBUST CONDITION ASSESSMENT PROGRAM AND THE TERRAMAR SEWER BASIN HAS SEEN THE BENEFITS OF IT WITH THE HUGE REDUCTION OF INFLOW AND INFILTRATION.
AND SO THOSE SAME TECHNIQUES ARE BEING MOVED ACROSS THE ISLAND.
WELL, ONE ASPECT OF ALL THOSE TECHNIQUES IS TO USE ACOUSTICS TO CHECK THE LEVEL OF BLOCKAGE AND SEWER MAINS.
SO THAT WAY WE CAN SEND OUR COMBINATION TRUCKS OUT TO CLEAN AREAS THAT ARE IN NEED VERSUS JUST PICKING 20 PERCENT ON A MAP AND MOVING ACROSS.
IN DOING SO, AS WE'RE CLEANING LINES, WE CAME ACROSS A WATER MAIN, AN OLD WATER MAIN PROBABLY PUT IN 50, 60, 70 YEARS AGO, WHO KNOWS, GOING DIRECTLY THROUGH A SANITARY SEWER MANHOLE AND A LARGE ONE AND A DRAINAGE MANHOLE.
MARIE ROBB: YOUR MAIN WAS GOING THROUGH? TRINO PEDRAZA: RIGHT AT THE VERY TOP PART IT WAS GOING THROUGH.
BRIAN MAXWELL: DON'T HAVE ANYBODY THINKING THAT'S THE CASE.
BUT IT'S JUST THAT WAS STANDARDS THAT WERE USED 70 YEARS AGO THAT AREN'T USED TODAY.
DAVID COLLINS: I RECALL WE LOST THREE MILLION GALLONS OF WATER A DAY ON ONE OF
[00:20:02]
THOSE.BRIAN MAXWELL: YEARS AGO WAS IN A STORM SEWER, OUR BEST TO GET IT ENGINEERED.
AND UNFORTUNATELY, ENGINEERING FIRMS DON'T WORK AS FAST AS THE ECQ.
TRINO PEDRAZA: FOR THE DESIGN, THE DESIGN WILL BE READ IN ANOTHER MONTH OR SO.
AND THEN AT THAT POINT, WE'RE GOING TO START MOVING TO TAKE THAT OUT TO BID.
AND WHEN WE DO THAT WHEN WE'RE LIKELY GOING TO BE USING THE BUY BOARD MECHANISM FOR SPEED.
OTHERWISE, IT'LL TAKE ANOTHER SIX MONTHS TO GET IT THROUGH BIDDING AND CONTRACT NEGOTIATIONS AND WHATNOT.
MARIE ROBB: SO WHEN WOULD THEY COME BACK AND FINANCE AGAIN? TRINO PEDRAZA: THEY WOULD COME BACK AND FINANCE AGAIN IF WE DON'T STICK TO OUR PROMISED SCHEDULES AND DELIVER THE GOODS.
BRIAN MAXWELL: THEY'VE DISCOUNTED THE FINES QUITE A BIT BECAUSE THEY KNOW WE'RE WORKING ON IT.
WE DISCOVERED IT, WE STARTED WORKING ON IT AS SOON AS WE DISCOVERED IT.
BUT THEY ARE OBLIGED TO FOLLOW THEIR RULES.
BUT THEY DID NEGOTIATE IN GOOD FAITH WITH US ON IT.
TRINO PEDRAZA: AND ALL OF THIS IS AS OUR DISCOVERY, RIGHT? AND SO.
WE GET PUNISHED FOR OUR OWN NON-COMPLIANCE THAT HAS TO BE SELF-REPORTED.
HOWEVER, IN OTHER CASES, IF YOU DON'T IT GET HIT A LOT HARDER.
BRIAN MAXWELL: IF WE HAD NOT SAID ANYTHING AND THIS GOT TURNED IN, THE FINE WOULD HAVE NOT BEEN.
MICHAEL BOUVIER: WHAT SIZE IS THAT WATERLINE? TRINO PEDRAZA: THAT I BELIEVE THAT WATERLINE IS A 20 INCH WATER MAIN.
BRIAN MAXWELL: ANY OTHER QUESTIONS, MARIE? MARIE ROBB: NO, THAT ONE COVERS THAT.
BRIAN MAXWELL: IT WILL DISRUPT SOME TRAFFIC FLOW IN 23RD STREET WHEN IT'S DONE.
BRIAN MAXWELL: DID YOU DISCOVER THIS AT THE 23RD STREET CONSTRUCTION PRIME? BRIAN MAXWELL: NO, THIS IS NORTH OF BROADWAY.
MARIE ROBB: [BACKGROUND] NEXT I HAVE 11BB.
AND I HATE WHEN WE HAVE CONSENT ITEMS THAT GO [OVERLAPPING] BOY BOY.
THIS IS LIKE A TEMPORARY SERVICE THAT I WAS READING ABOUT IT.
CAN WE GET FURTHER EXPLANATION? I BELIEVE.
CAN YOU EXPLAIN FURTHER? I MEAN, I READ THE DOCUMENTS.
HOPE DEAN: WE'RE SHORT-STAFFED.
THIS COMPANY IS A PARTNER THAT WE TYPICALLY DO BUSINESS WITH WHEN WE HAVE LARGER PROJECTS, THEY'RE FAMILIAR WITH OUR INFRASTRUCTURE, OUR NETWORK.
AND SO THEY'RE GOING TO BE SUPPLEMENTING THE INFRASTRUCTURE TEAM UNTIL WE CAN STEP BACK UP.
MARIE ROBB: SO WHAT ARE WE DOING TO TRY TO FIND STAFF? HOPE DEAN: SO I HAVE AN AGGRESSIVE, MAYBE A SEARCH ON LINKEDIN WHICH HAS NETTED ME QUITE A FEW APPLICANTS.
WE'RE USING TWO STAFFING SERVICES, GTS AND ROBERT HALF.
WE WERE ALSO SEEKING APPLICANTS AND BRINGING THOSE TO THE TABLE.
RIGHT NOW WHAT I HAVE IS A SET OF APPLICANTS BUT I HAVE TO DO INTERVIEWS.
AND HOPEFULLY WE'LL BE ABLE TO FIND SOMEBODY.
I'M GOING TO BE HONEST, THIS HAS BEEN A VERY DIFFICULT TIME FROM AN IT PERSPECTIVE.
WE'RE HAVING A DIFFICULT TIME FINDING SOMEBODY THAT WANTS TO WORK IN THE OFFICE.
BRIAN MAXWELL: PART OF IT TOO IS THAT THE MARKET HAS MOVED TO A WORK AT HOME MARKET, AND SO MUCH OF WHAT WE DO REQUIRES PRESENCE.
THAT HAS PUT US IN A LITTLE DIFFERENT SITUATION, BUT WE ARE QUICKLY TRYING TO ADAPT TO THAT AS BEST WE CAN.
MARIE ROBB: THEY THOUGHT OF GOING TO SOME OF THE TECHNICAL SCHOOLS THAT SPECIALIZE IN THIS AND MAYBE GETTING INTERNS TO HELP WITH THE LOAD THAT MIGHT TURN INTO POTENTIAL FUTURE.
I HAVE AN INTERNSHIP PROGRAM THAT WE USE, BUT NOT NECESSARILY IN THIS AREA.
THIS IS HIGHLY TECHNICALLY SKILLED STAFF, NOT SOMEBODY WHO JUST [OVERLAPPING].
BRIAN MAXWELL: WE LOST A LONGTIME SENIOR MEMBER OF STAFF TO KIND OF RETIREMENT NEXT JOB TYPE THING.
HOPE DEAN: IT'S NOT A GOOD SITUATION.
I WILL TELL YOU THAT WHAT I DO HAVE AT THIS POINT, POTENTIALLY COMING DOWN THE PIKE NEXT COUNCIL MEETING IS THAT I BELIEVE THAT I HAVE FOUND A INDIVIDUAL THAT WILL BE AUGMENTING THE TEAM FROM ANOTHER STAFFING AGENCY CALLED ROBERT HALF, AND SHE COMES TO US FROM THE NATIONAL GUARD.
SO REALLY AUGMENTING THE TEAM, SO THE CENTER, WHAT YOU HAVE ON COUNCIL ACTION TODAY, IS SOMEBODY THAT WE REGULARLY PARTNER WITH AND IS GOING TO HELP FILL THOSE GAPS DURING THIS UNFORTUNATE PERIOD.
IT'S NOT SOMEBODY THAT'LL HIRE STAFF.
ROBERT HALF IS SOMEBODY WHO WE USE TO HELP US FIND PERMANENT EMPLOYEES.
[00:25:01]
THE CITY COLLECTIVELY USES THEM.I HAVE USED THEM IN THE PAST FOR TECH AS WELL.
AND I HAVE FOUND A INDIVIDUAL THAT POTENTIALLY IS GOING TO START WITH ME IN THE MIDDLE OF AUGUST.
THAT'S ONLY ONE POSITION AND THAT'S ONLY ONE [OVERLAPPING] AND I REALLY NEED THREE.
HONESTLY, THIS IS A VERY UNCOMFORTABLE SITUATION FOR ME BECAUSE OUR INFRASTRUCTURE IS NOT BEING MANAGED, RIGHT? BRIAN MAXWELL: SURE.
HOPE DEAN: HONESTLY, YEAH, IT'S NOT GOOD.
FOR THE CAMERA AND THE AUDIENCE, COULD YOU IDENTIFY YOURSELF? HOPE DEAN: HOPING IT.
ANYTHING ELSE, MARIE? MARIE ROBB: SHEET HERE.
BRIAN MAXWELL: THANK YOU VERY MUCH.
BRIAN MAXWELL: WHICH ONE? BRIAN MAXWELL: EXCUSE ME.
DAVID COLLINS: WHICH ONE? BRIAN MAXWELL: WELL, THIS IS GOING TO BE FOUL.
[OVERLAPPING] COUNCILMEN FINKLEA.
DAVID FINKLEA: THANK YOU, MAYOR.
MARIE ROBB: I LOOKED AT MY AGE SINCE THEY WERE HEARINGS TO ADMIN.
ADRIEL MONTALVAN: HOW ARE YOU? BRIAN MAXWELL: HAVE A SEAT.
COULD YOU IDENTIFY YOURSELF, PLEASE? CATHERINE GORMAN: I'M CATHERINE GORMAN, SYSTEM DIRECTORY DEVELOPMENT SERVICES DEPARTMENT.
ADRIEL MONTALVAN: ADRIEL MONTALVAN, PLANNING MANAGER.
HAS A CONCEPT DESIGN PLAN CHANGED SINCE LAST PRESENTED TO THE COUNCIL? [OVERLAPPING] THE PLANS IN THE PACKET DO NOT REFERENCE THE 200-FOOT DEMARCATION LINE FROM THE LINE OF VEGETATION OR INDICATE THE PROXIMITY OF THE STRUCTURE OF THAT LINE OR THE CURRENT SITE PLANS AS INCLUDED IN THE PUB APPLICATION AND COMPLIANCE WITH TEXAS ADMINISTRATIVE CODE SPECIFICALLY FOR RULE 15.488 RELATED TO THE CONSTRUCTION OF CONCRETE SLABS WITHIN 200-FOOT CLIMATE VEGETATION.
ADRIEL MONTALVAN: THERE ARE STILL WORKING ON THEIR BEAT TREND TO PROTECTION CERTIFICATE.
DAVID FINKLEA: NOT COMPLETED, SO THE ANSWER IS YOU CAN'T ANSWER THAT BECAUSE YOU HAVEN'T SEEN IT.
DAVID FINKLEA: HAS THE GIL RENDERED AN OPINION ON THE CODE OF ORDINANCES CHANGE THE COUNCIL RECENTLY APPROVED RELATED TO THIS SLIDE? ADRIEL MONTALVAN: I BELIEVE THEY ARE STILL WORKING ON IT AS WELL.
DAVID FINKLEA: ARE THE PLANS IN COMPLIANCE WITH THE FAMOUS DESIGN GUIDELINES, TO THE BEST OF YOUR KNOWLEDGE? ADRIEL MONTALVAN: THOSE WILL BE REVIEWED BY THE FLOODPLAIN ADMINISTRATOR ONCE SUBMITTED FOR CONFIRMATION, YES.
DAVID FINKLEA: THAT ANSWERS MY NEXT QUESTION, WHICH IS, HAS FEMUR RENDERED AN OPINION AS TO THE IMPACT OF THIS PROJECT ON OUR COMMUNITY RATING SCORES SYSTEM FOR THE CITY OF GALVESTON, AND WE'LL DAY PRIOR TO THE ISSUANCE OF ANY BEACH-FRONT CONSTRUCTION PERMIT? ADRIEL MONTALVAN: TYPICALLY DO NOT GET INVOLVED IN THAT PROCESS.
THAT'S PART OF THE FLOODPLAIN ADMINISTRATORS' RESPONSIBILITY.
IT IS MY UNDERSTANDING THAT IT DOES NOT IMPACT THE RATING SYSTEM.
DAVID FINKLEA: YOUR UNDERSTANDING FROM WHAT? ADRIEL MONTALVAN: FROM FLOOD-PLAIN ADMINISTRATOR.
DAVID FINKLEA: THE FOOTPRINT ADMINISTRATOR RENDERED AN OPINION STATING THAT IT WILL NOT IMPACT OUR COMMUNITY RATING SYSTEM.
MARIE ROBB: IT'S HIGHLY UNUSUAL THAT ONE PROJECT WOULD AFFECT A COMMUNITY RATING SYSTEM.
NOW IF YOU WERE BLANKET LEE SAYING ON BROADWAY, YOU'RE GOING TO NOT HAVE A HEIGHT STANDARD OR SOMETHING TO THAT EFFECT THAT COULD AFFECT THE CONSTRUCTION OF ONE BUILDING IS HIGHLY UNUSUAL.
DAVID FINKLEA: AS A REPORT COUNCIL MEMBER, I UNDERSTAND.
HOWEVER, WE HAVE PASSED AN ORDINANCE THAT CHANGES, NOT SPECIFICALLY FOR THIS PROJECT, BUT IT DOES SET PRECEDENTS THAT SAYS THE COUNCIL IS WILLING TO CONSIDER EXCEPTIONS FOR VARIOUS PROJECTS, AND IT'S A SLIPPERY SLOPE THAT WE GO DOWN HERE LIGHT INTO THAT, SO THANK YOU.
DAVID FINKLEA: ITEM 10A RIGHT AWAY.
ABANDONMENT OF THE GISD? BRIAN MAXWELL: YES.
DAVID FINKLEA: MR. MAXWELL, HAS A TRAFFIC IMPACT STUDY BEEN PERFORMED INDICATING A CHANGE IN TRAFFIC PATTERNS AND/OR FUTURE LEVEL OF SERVICES AS A RESULT OF THE ABANDONMENT? BRIAN MAXWELL: [OVERLAPPING] I DON'T KNOW IF THEY PERFORMED A TRAFFIC STUDY OR NOT.
WE HAVE NOT ASKED THEM FOR ONE [BACKGROUND] PLEASE.
ZACH JOHNSON: ZACH JOHNSON WITH ZERO/SIX CONSULTING HERE ON BEHALF OF GISD.
DAVID FINKLEA: I'LL STATE IT AGAIN.
HAS A TRAFFIC IMPACT STUDY BEEN PERFORMED RELATED TO THE BETTERMENT OF THE PROPERTY? ZACH JOHNSON: YEAH, PVK HAS DONE A TRAFFIC STUDY THAT I CAN PROVIDE TO YOU.
DAVID FINKLEA: THEY DIDN'T KNOW, FINDING NO SIGNIFICANT IMPACT.
DAVID FINKLEA: AS A PART OF THAT STUDY, DO YOU KNOW IF THEY LOOKED AT THE FUTURE TRAFFIC GENERATION AS A RESULT OF THE CHANGE OF PARKING FOR GISD? ZACH JOHNSON: YES.
THEY'VE LOOKED AT THE PARKING AND THE TRAFFIC ALONG AVENUE PRETTY SIGNIFICANTLY.
BRIAN MAXWELL: KEEP IN MIND, THE STREET WE'RE ABANDONING HERE, IT HAS CLOSURES, CONSISTENTLY, SHORT BALL HIGH, SO IT'S NOT A HEAVILY TRAFFICKED STREET.
IT'S PRETTY MUCH USED BY THE SCHOOL.
[00:30:01]
DAVID FINKLEA: IT'S JUST THE LITTLE ENGINEERING ME? BRIAN MAXWELL: YEAH.IT ALSO SAID SOMETHING ABOUT ALLEYS WAS THERE, ALLEY INCLUDED IN THIS? BRIAN MAXWELL: THERE'S AN OLD ALLEY IN THERE [OVERLAPPING].
ZACH JOHNSON: THAT SHOWS THE FOOTPRINT OF THE NEW BUILDING IN THE ALLEYWAY IN THE STREET THAT WOULD BE WITHIN THE FOOTPRINT OF THE BUILDING.
MICHAEL BOUVIER: I'M GOING TO ORIENT MYSELF HERE.
BRIAN MAXWELL: WE'VE ALREADY ABANDONED HALF THAT ALLEY TO THEM FOR THEIR PARKING LOT YEARS AGO.
DAVID FINKLEA: THAT'S NOT WORTH IT.
THAT'S WHERE THOSE BUILDINGS ARE BEING REMOVED.
IT DID END INTO THEIR PARKING LOT.
MICHAEL BOUVIER: CAN WE SCAN THIS IN AND INCLUDE THIS IN THE PACKAGE? BRIAN MAXWELL: SURE.
JANELLE, WOULD YOU GET A COPY OF IT TO MAKE SURE THOSE ARE ONLINE WITH OUR PACKAGE? BRIAN MAXWELL: DAVID, ARE YOU FINISHED? DAVID FINKLEA: I'M FINISHED WITH THIS ITEM.
BRIAN MAXWELL: GO RIGHT AHEAD, JOHN.
JOHN PAUL LISTOWSKI: IS THERE IS YOUR PARKING ALONG G THIS ROUTE RIGHT NOW? ANY PARKING? BRIAN MAXWELL: YES.
JOHN PAUL LISTOWSKI: I'M GOING TO BRING UP THAT ISSUE WITH PARKING.
WHAT ARE YOU ALL DOING FOR PARKING CURRENTLY, SINCE ALL THE PARKING LOTS HAVE BEEN? ZACH JOHNSON: WE'RE ADDING A TEMPORARY PARKING LOT ON THE WEST SIDE OF SCOTT.
BRIAN MAXWELL: TENNIS COURTS ARE NOW.
ZACH JOHNSON: IT'LL BE SOUTH OF THOSE CURRENT TENNIS COURTS.
WE'RE GOING TO PUT DOWN A BUNCH OF ROCK BASE THAT WILL ULTIMATELY BE FOR THE FOUNDATION IMPROVEMENT WHENEVER WE DO THE SLAB ON GRADE.
JOHN PAUL LISTOWSKI: THAT'LL BE FOR STUDENTS AND FACULTY? ZACH JOHNSON: STUDENTS AND STAFF.
WE'LL HAVE THAT DONE BEFORE SCHOOL STARTS THE TEMPLATE.
WE'LL KEEP THAT TEN-BLOCK UNTIL WE CAN COMPLETE THIS LOT THAT WOULD BE FOR THIS SCOTT BUILDING FOOTPRINT USED TO BE AND THEN THE OLD PARKING LOT.
JOHN PAUL LISTOWSKI: HOW MANY CARS WILL THAT HOLD? ZACH JOHNSON: I DON'T HAVE AN EXACT NUMBER, BUT I CAN GET IT FOR YOU.
JOHN PAUL LISTOWSKI: WILL IT BE EQUAL TO THE PARKING THAT WAS EXISTING? ZACH JOHNSON: ITS ECONOMY BE COMPARABLE? WE'RE TRYING TO MEET FOR THE PRINTS.
JOHN PAUL LISTOWSKI: THAT'D BE GREAT IF YOU CAN GIVE ME THOSE NUMBERS THIS AFTERNOON.
I HAD A QUESTION ON 10A, BUT DON, IT'S MORE DIRECTED TO LEGAL.
I THINK WE HAVE DON THERE TO DONATE THIS PROPERTY.
SOMETHING STUCK IN MY MIND WHEN WE WERE TALKING ABOUT OUR RELINQUISHING OF THE ROAD THERE AT A&M FOR THE PELVIC CANAL AND BRIDGE THAT WE COULDN'T DONATE THE PROPERTY.
WE HAD TO DO IT IN A DIFFERENT MANNER.
CAN WE DONATE THIS PROPERTY? YOU HAVEN'T DONE TO DO SO.
DONALD GLYWASKY: THIS STATUTE ALLOWS US TO DONATE LAND AT A&M WHERE WE'RE REALLY DOING MORE OF A SWAP.
BRIAN MAXWELL: IT HAS MORE TO DO WITH HOW WE'RE RECEIVING FUNDING FOR THE BRIDGE FROM A&M THAN IT DOES WITH THE SALE OF THE LAND, MAYOR.
BRIAN MAXWELL: WELL, I REMEMBER THE WORD DONATE WAS A CATCHPHRASE THAT WE DIDN'T WANT TO GET INTO.
BRIAN MAXWELL: THAT'S CORRECT.
BRIAN MAXWELL: ON RELEASE OF CITY LAND.
SO THIS IS FINE WITH THE WAY IT'S STRUCTURED.
DAVID COLLINS: THERE'S GOVERNMENT TO GOVERNMENT IS MAXWELL: THAT ANSWERS MY QUESTIONS.
DAVID, COULD YOU THINK THEY GO? .
DAVID COLLINS: [OVERLAPPING] YEAH.
THE CLOSURES OF ALL PLANNED IN THIS PROCESS.
THERE WILL BE SOME TEMPORARY CLOSURES OF AVENUE O DURING CONSTRUCTION.
ZACH JOHNSON: IT'LL PRIMARILY BE WHENEVER WE INSTALL.
THERE'S A SKY BRIDGE THAT GOES ACROSS AVENUE O.
BRIAN MAXWELL: IT WILL NOT BE THE PERIOD OF TIME THAT TRAINERS IS CLOSING POST OFFICE.
DAVID COLLINS: WHICH IS FOREVER? BRIAN MAXWELL: YEAH.
SO THIS INVOLVES A LOT OF UTILITY WORK.
THEY'RE NOT GOING TO HAVE MUCH UTILITY WORK ON AVENUE O, IS MY UNDERSTANDING.
DAVID COLLINS: LET ME KNOW WHEN THAT'S ANTICIPATED.
BRIAN MAXWELL: I DON'T WANT YOUR SCHEDULE IS.
ZACH JOHNSON: IT WOULD PROBABLY BE SOMETIME WITHIN THE FALL.
THIS FOREIGN DOING SOME UTILITY RELOCATIONS.
MARIE ROBB: WE'VE INCLUDED CLOSING ONP FOR THAT 37 PROJECT FOR THE LAST COUPLE OF MONTHS? DAVID COLLINS: YEAH.
LET'S LET'S KEEP THAT IN MIND AND BE SURE THE PUBLIC IS.
WE'RE GOING TO WORK WITH THEM TO MAKE SURE WE CAN TELL LET US KNOW WHEN THEY'RE GOING.
WELL IN ADVANCE OF CLOSURE, WE'VE BEEN HAVING TO CLOSE 27TH STREET, SO I KNOW I HIT THAT.
BUT I KNOW [LAUGHTER] THAT'S THE PROBLEM THAT WE'RE TRYING TO WORK WITH THEM BECAUSE THEY ARE ON A VERY TIGHT SCHEDULE.
[00:35:03]
BRIAN MAXWELL: COUNCILMAN FINKLEA.BRIAN MAXWELL: ONE LAST ITEM, AND THIS IS JUST A STATEMENT ON 11AA.
I JUST WANT TO GIVE STAFF, MR. MAXWELL KUDOS FOR SUBMITTING AND RECEIVING THAT FHWA GRANT.
THAT'S A GREAT USE OF FUNDS FOR LOCAL MATCH.
OUR $80,000 TURNS INTO $400,000 TO HELP STEADY AND DEVELOP SOLUTIONS THAT HELP IMPROVE MULTI-MODAL TRANSPORTATION AROUND THE ISLAND.
SO I'LL BE WATCHING THAT ONE REAL CLOSELY AND CONGRATULATIONS.
BRIAN MAXWELL: IT CAN BE APPRECIATED.
DAVID COLLINS: ADD ONTO THAT WITH YOU FOR THE SAKE OF THE PUBLIC.
[NOISE] FOR ME, EXPLAIN WHAT THIS IS ABOUT.
ROBB DID PROBABLY DO A MUCH LIGHTER AND CALLAWAY [NOISE] MATCHING FOR THE.
BRIAN MAXWELL: WHEN IT COMES DAY, IT'S ROBB.
[LAUGHTER] [OVERLAPPING] [LAUGHTER] BRIAN, STOPPED Z? BRIAN MAXWELL: YEAH, I DO.
ROBERT WINIECKE: I MISSED THE QUESTION OF WALKING UP.
DAVID COLLINS: MY QUESTION IS, WHAT IS THIS SAFE STREETS INITIATIVE? WHAT ARE WE DOING HERE? AS COUNSELING POINTS OUT ALREADY FELT THEM FROM 400,000.
DAVID COLLINS: ANSWERS FOR HIM.
ROBERT WINIECKE: SO THE INTENT OF THIS IS TO LOOK AT OUR RAILWAY SYSTEM AS A WHOLE.
THE OVERALL GOAL IS TO TRY AND ACHIEVE ZERO OR VISION ZERO, WHICH HAS NO FATALITIES BY 2050.
THIS IS THE GROUNDWORK TO HELP US ACHIEVE FUTURE GRANT FUNDING TO MAKE PHYSICAL IMPROVEMENTS IN THE SYSTEM, TO IMPROVE STATE.
THIS LOOKS AT THE INTERSECTIONS, ADDITION MOVEMENTS, ALL THE DIFFERENT MODES OF TRANSPORTATION WE HAVE.
IT TAKES INTO CONSIDERATION FATALITIES, INCAPACITATING INJURIES.
THEN LOOKS AT WHAT CAN BE DONE TO SOLVE THAT SYSTEM WIDE ACROSS OUR NETWORK.
THEN IT IDENTIFIES THOSE SOLUTIONS AND WE CAN IMPLEMENT THOSE THROUGH FUTURE IMPLEMENTATION GRANTS.
DAVID COLLINS: A SEPARATE NON-PROFIT EFFORT EFFORT GOING FORWARD TO IDENTIFY SIDELINE ISSUES.
WE'RE DOING THAT [OVERLAPPING] P&Q, I BELIEVE RIGHT NOW.
ROBERT WINIECKE: WE'LL LOOK AT THAT NOW, BUT THAT'S ALSO ANOTHER CONSIDERATION TO LOOK AT AS PART OF THIS THING.
BRIAN MAXWELL: WE'RE GOING TO DO WHAT WE CAN GIVEN THE CONFINES OF OUR ABILITIES IN THE MTC AND ALL THOSE TYPE THINGS.
BUT A LOT OF THESE MAY REQUIRE MORE ENGINEERING AND MORE DRASTIC IMPROVEMENTS TO THE INTERSECTION, SO WHAT WE'RE TRYING TO JUST GET THEM ALL IDENTIFIED THROUGH THE STUDY.
SO WE'RE GOING TO DO WHAT WE CAN ON THE PERIPHERY NOW.
BUT IF HE'S IDENTIFIED SOME BIGGER ONES THAT WILL ENABLE US TO CHASE GRANTS TO GET THOSE DONE.
BRIAN MAXWELL: MR. MAXWELL, WOULD YOU DEFINE WHAT THE ACRONYM MUTCD IS.
ROBERT WINIECKE: MANUAL ON UNIFORM TRAFFIC CONTROL DEVICES.
MUTCD I ALWAYS LEAVE OFF THE D.
[OVERLAPPING] YOUR YOUR TRAFFIC CONTROL BIBLE? DAVID COLLINS: YES.
WHAT IF EACH OF US PUT TOGETHER.
PROBABLY DON'T HAVE A TRAFFIC LIGHT OR A STOP SIGN ON EVERY CORNER.
BRIAN MAXWELL: WELL, THAT'S RIGHT BECAUSE WE FOLLOW THAT BECAUSE OTHERWISE IT DOES EXPOSE THE CITY TO.
ANY OTHER QUESTIONS ON THIS? MICHAEL BOUVIER: THERE'S A COST ITEM IN HERE CALLED FRINGE BENEFITS, $70,000 FOR FEDERAL SHARE IN 17,000 PER NON-FEDERAL.
WHAT IS THAT? BRIAN MAXWELL: IF IF WE'RE BILLING STAFF TIME TO THAT, THAT'S OUR THAT'S OUR COST OF HEALTH INSURANCE AND PENSION.
BRIAN MAXWELL: WHEN WE BUILD STAFF TIME TO A PROJECT WE BUILT IN ITS ENTIRETY.
VERY FAMILIAR WITH FRINGES BECAUSE I'M DEALING WITH COLLECTIVE BARGAINING RIGHT NOW.
BRIAN MAXWELL: APPRECIATE THAT.
JUST A COUPLE OF THINGS, SO 11A THIS IS THE DISTRIBUTION OF HOTEL REVENUE TO ARC ORGANIZATIONS.
[NOISE] DESCRIBES ALL THE ART.
BRIAN MAXWELL: THAT'S THE ARTS AND CULTURAL.
DAVID COLLINS: WELL, THIS IS THIS CULTURAL I'M SORRY.
WHICH IS THE ARCH HISTORIC PRESERVATION ORGANIZATION, THE MULTIYEAR AGREEMENTS.
I WAS A LITTLE SURPRISED TO SEE THIS ON HERE.
I THOUGHT WE WERE GOING TO HAVE THE OPPORTUNITY TO WORKSHOP THIS BEFORE IT CAME BACK.
I'LL BE TALKING ABOUT OUR CULTURAL ARTS FUNDING AND SO FORTH.
ON OUR AUGUST 10TH MEETING THIS EVENING, I'M GOING TO ASK IF WE CAN DEFER THIS UNTIL THAT APPROVAL OF THAT FEMINIST COUNCIL'S APPROVAL.
BECAUSE I THINK THERE'S TWO THINGS IN HERE THAT WE NEED TO TALK ABOUT WHAT WE'RE DOING HERE, HOW WE'VE DONE IT IN THE PAST, HOW IT RELATES TO CULTURAL ARTS.
[00:40:01]
THIS IS DISTRIBUTION, $1.8 MILLION HOTEL TAX.BUT THERE ARE SOME CRITERIA IN THIS THAT I DON T THINK WE WERE ADEQUATELY CREDIT WE'RE LOOKING AT WE DEPEND ON THIS COMMITTEE THEY DO A LOT OF WORK ON.
I'M LOOKING THROUGH THIS, BUT I'M NOT SURE.
[NOISE] THIS IS LONG-TERM WHAT WE WANTED TO DISTRIBUTING THIS MONEY.
BRIAN MAXWELL: YOU BRING THAT UP FOR DIFFERENCE.
DAVID COLLINS: I DON'T WANT TO GET PEOPLE EXCITED AND I'M NOT SUGGESTING WE DON'T DISTRIBUTE THIS MONEY.
I JUST, YOU KNOW, BECAUSE IT'S IMPORTANT TO SOME OF OUR ORGANIZATIONS THAT YOU JEFF FOR BRANDS AND BRIAN.
THIS IS ME, SOME MAJOR FUNDING FOR THEM, SO I DON'T WANT TO GET ANYBODY EXCITED THAT WE'RE NOT DO THAT, BUT THERE ARE SOME QUESTIONS ABOUT HOW WE GO ABOUT IT.
MARIE ROBB: IF WE DIFFER WELL, FINANCIALLY AFFECT ANYONE? DAVID COLLINS: WELL, NO.
AND THIS IS A TWO-YEAR CONTRACT THAT DOESN'T APPLY UNTIL NEXT FISCAL YEAR ANYWAY.
IF THERE'S ANY I DON'T THINK IT'S GOING TO IMPEDE THE BUDGET PROCESS.
BRIAN MAXWELL: I THINK EARLY ENOUGH IN THE PROCESS, IT SHOULDN'T I MEAN.
DAVID COLLINS: BECAUSE I DON'T THINK THE NUMBER IS GOING TO CHANGE.
BRIAN MAXWELL: THAT SOUNDS GREAT, DAVID.
WHEN WE COME TO THIS AFTERNOON'S MEETING, BRIAN OR WHOMEVER, WOULD YOU DOUBLE-CHECK TO MAKE SURE THAT FUNDING IF WE DEFER THIS IS NOT A CONCERN.
[OVERLAPPING] IMPEDE BUT ANYONE'S BUDGET PROCESS? [BACKGROUND] LIKE IF WE DO IT ON THE DECEMBER WORK I'M IN ON THAT 10TH WORKSHOP THAT WE VOTE THAT DAY.
DAVID COLLINS: YEAH, I WOULD HAVE NO TROUBLE, BUT THAT DOESN'T.
BRIAN MAXWELL: THIS DOESN'T TAKE EFFECT TO OCTOBER 1ST DAY.
[NOISE] WORKS OUT ON THE MORNING OF THE 10TH AND THEN I CONSIDER THIS, THAT.
BRIAN MAXWELL: IT WOULD BE UP TO COUNCIL'S DISCRETION ON THAT.
DAVID COLLINS: BUT I WOULD HAVE NO OBJECTION.
BRIAN MAXWELL: WE COULD PUT THAT DOWN FOR THE WORKSHOP CHANNEL.
WE HAD PUT HIM DOWN FOR THE WORKSHOP ON THE 10TH, AND WE'VE PUT IT AS AN ACTION ITEM ON THE 10TH TO SEE WHAT COUNCIL'S PLEASURE WAS AT THAT POINT.
DAVID FINKLEA: GOT QUESTION PROCEDURALLY SINCE WE'RE PULLING ITEM 10 IS IT JUST AS EASY TO PULL THIS ONE OR SHOULD IT BE DEFERRED BECAUSE IT'S GOT SOME FUNDING? [OVERLAPPING] MISSED A QUESTION BECAUSE IT'S ON FOR CONSIDERATION.
I'M HAPPY TO JUST MOVE TO DIFFER.
BRIAN MAXWELL: I THINK IF YOU DEFER IT TO, THEN YOU CAN ACTUALLY SET A TIME WHEN IT COMES BACK.
IF YOU PULL IT, YOU DON'T HAVE THAT.
WE CAN SET AN AUGUST 10TH DATA.
BRIAN MAXWELL: WE'LL FOLLOW UP WITH YOU.
BRIAN MAXWELL: WE HAVE FOUND IN THROUGH WORKING THAT THE STEWART IS ACTUALLY SITTING ON PORT OF HOUSTON PROPERTY.
WE WENT TO VISIT WITH THE PORT OF HOUSTON AND THEY HAVE VERY GENEROUSLY DONATED THE PROPERTY UNDERNEATH THE STEWART TO THE CITY OF GALVESTON.
IT WAS FUNNY BECAUSE WE TOLD HIM, WE SAID WE'D REALLY LIKE YOU TO DONATE THIS, OTHERWISE, WE NEED TO TALK TO YOU ABOUT YOUR SHIP.
[LAUGHTER] BUT THEY WERE VERY GENEROUS AND VERY EASY TO WORK WITH ON THIS AND THEY'VE GIVEN US THE PROPERTY.
SO THE STEWART NOW WILL SOLIDLY BE ON LAND OWNED BY THE CITY OF GALVESTON.
DAVID COLLINS: THAT'S EXCELLENT.
I THINK EVERYBODY'S ALWAYS KNOWN THAT HALF THE STEWARTS AT SOME POINT ARE GALVESTON, IT'S NOT GOING TO BE OUR SECRET, BUT THANKS TO THE SUPPORT OF HOUSTON.
BRIAN MAXWELL: THEY REALLY HAVE, THEY'VE BEEN GREAT TO WORK WITH.
BRIAN MAXWELL: WELL, I WANT TO OFFICIALLY, AND I'LL DO THAT STAFF NOON AGAIN.
WANT TO THANK STAFF AND THE PORT OF HOUSTON FOR THEIR NO-COST CONVEYANCE OF THIS LAND, IS 1.16 ACRES OVER THERE.
THEY WERE VERY GRACIOUS, AS YOU MENTIONED, TO DO THAT.
THANK YOU TO THE PORT OF HOUSTON.
DAVID COLLINS: IS BRIAN SAYS IF THEY WANT TO KEEP IT THEY'RE GOING TO HAVE TO GO TO THE SHIPS [LAUGHTER].
VERY QUICKLY, 11B, MR. SMITH, IS THIS YEAR, LAST YEAR, NEXT YEAR? BRIAN MAXWELL: NEXT YEAR.
DAVID SMITH: THAT IS FOR NEXT YEAR.
IF YOU DON'T GET RESERVE YOU'RE NOT GOING TO GET A SPOT.
WE ARE IN JULY WE ARE RESERVING FIREWORKS FOR NEXT YEAR.
DAVID SMITH: BIGGER AND BETTER.
BRIAN MAXWELL: [LAUGHTER] QUITE THE SHOW.
BRIAN MAXWELL: THAT'S YOUR MOTTO, AIN'T IT, DAVID? [OVERLAPPING] IF IT GOES GREAT, IT'S HIS, IF IT GOES BAD IT'S THEIRS.
[LAUGHTER] WHEN THAT FIRST THING WENT OFF.
BRIAN MAXWELL: NO, MY EXACT WORDS TO DAVID WERE, IF THIS THING AIN'T GETTING READY TO GO OFF ON TIME.
YOU GET OUT THERE WITH A BIC LIGHTER AND START SETTING THESE THINGS OFF.
BRIAN MAXWELL: WELL DONE ON THE FIREWORKS THIS YEAR GENTLEMEN.
DAVID SMITH: TO MY COLLEAGUES ANY FURTHER?
[00:45:02]
BRIAN MAXWELL: NO.JOHN PAUL LISTOWSKI: ALL MINE HAVE BEEN ANSWERS.
BRIAN MAXWELL: THANK YOU VERY MUCH.
LET ME JUST MAKE SURE I GOT IT DOWN HERE CORRECTLY.
I UNDERSTAND COMPLETELY WHAT'S GOING ON HERE.
[OVERLAPPING] BRIAN, IT'S MORE OF AN OPERATIONAL ISSUE THAN ANYTHING ELSE, BUT JUST WANT TO MAKE SURE THAT WE COMMUNICATE WITH THE PORT, JEFF THOMAS OVER THERE, BECAUSE THEY'RE MAKING SOME PLANS FOR PEER 37 AND ALL THAT.
JUST MAKE SURE WE'RE COORDINATED.
THEY'RE PERFECTLY FINE, BUT MAKE SURE WE COMMUNICATE WITH THEM.
MARIE ROBB: WELL, I'M GOING TO MAKE MENTIONED TODAY JUST BECAUSE WE DON'T KNOW HOW MANY PEOPLE MIGHT BE WATCHING TONIGHT.
BUT ON OUR CONSENT AGENDA, WE HAVE A NUMBER OF GENEROUS DONATIONS [OVERLAPPING] TO OUR ON PARKS AND THINGS SO.
BRIAN MAXWELL: WE'LL BE THANKING THEM AND BARBARA SANDERSON WILL BE RECEIVING AND READING APPRECIATION AND A CERTIFICATE OF RECOGNITION FOR BETTER PARKS THIS AFTERNOON.
[OVERLAPPING] GOOD POINT HOW THEY'VE BEEN VERY GRACIOUS TO DONATE TO THE CITY.
WE HAVE GONE THROUGH ALL OF OUR CLARIFICATION ITEMS. THANK YOU VERY MUCH, COUNCIL.
LET'S MOVE NOW, IF WE COULD, TO THE ITEM 3B, PLEASE JANELLE.
[3.B. Discussion Of The Lone Star Rally 2023 Contract (D. Smith - 15 Min)]
JANELLE WILLIAMS: 3B; DISCUSSION OF THE LONE STAR RALLY 2023 CONTRACT.BRIAN MAXWELL: BIGGER AND BETTER, RIGHT, DAVID? DAVID SMITH: ALWAYS BIG WITH LONE STAR RALLY.
BRIAN MAXWELL: THANK YOU, STAFF.
DAVID SMITH: LONE STAR RALLY'S OUR FLAGSHIP EVENT IS OUR LARGEST EVENT.
AT THE HIGH NUMBERS, IT WAS BRINGING IN ABOUT A HALF A MILLION INDIVIDUALS TO THE CITY OF GALVESTON, BRINGING IN ABOUT $115 MILLION TO THE ISLAND IN A THREE TO FOUR DAY EVENT PERIOD.
LONE STAR RALLY USUALLY GRANTS ABOUT A FIVE-YEAR CONTRACT, THEIR CONTRACT HAS EXPIRED, AND THIS IS A REQUEST OF COUNCIL TO AUTHORIZE A NEW THREE-YEAR CONTRACT WITH THE POSSIBILITY OF EXTENDED TWO YEARS FOR A TOTAL OF FIVE-YEAR CONTRACT.
THE CONTRACT BASICALLY MIRRORS THE SAME CONTRACT THAT THEY'VE HAD BEFORE.
LONE STAR RALLY HAS BEEN HERE FOR 20 YEARS ROUGHLY.
AGAIN, AS I STATED, THE PROMOTER RUNS A VERY WELL-ORGANIZED EVENT.
THEY'RE VERY CARING ABOUT THE ISLAND AS WHEN THEY LEAVE, THEY WANT EVERYTHING PUT BACK EXACTLY THE WAY IT WAS AND CLEAN AS WELL.
THE ONLY THING A LITTLE BIT DIFFERENT ON THIS CONTRACT IS THAT THE SEAWALL VENUE, THEY HAVE ASKED TO EXTEND IT POSSIBLY FROM 25TH TO 27TH STREET.
THE REASON WHY THEY'RE DOING THAT IS BECAUSE YOU'VE HAD SOME LOCAL GALVESTON BUSINESSES ASKING TO HAVE THAT DONE.
THEY HAVE THE OPTION OF THE SAME VENUES THAT THEY'VE HAD, SEAWALL AND DOWNTOWN WITH A POSSIBILITY OF EXTENDING THE SEAWALL FROM 25TH TO 27TH STREET.
WE HAVE WORKED OUT A TRAFFIC PLAN WHICH WILL BASICALLY MIRROR THE SAME AS THE ORIGINAL ONE.
YOUR EASTBOUND TWO LANES WILL STILL CONTINUE TO GO EAST ON SEAWALL.
YOUR WESTBOUND LANES WILL BE DIVERTED UP THE ONE-WAY BACKUP 27TH INSTEAD OF 25TH IF APPROVED.
DAVID SMITH: ANY QUESTIONS I'M HERE TO ANSWER? BRIAN MAXWELL: COUNCILMAN FINKLEA.
DAVID FINKLEA: THE LAST ECONOMIC STUDY WAS PERFORMED SEVEN YEARS AGO AT THE 2016 LONE STAR RALLY.
AS A PART OF THE AGREEMENT, I WOULD LIKE TO HAVE AN UPDATED ECONOMIC STUDY DONE NO LATER THAN DURING THE 2026 LONE STAR RALLY AT THE APPLICANTS EXPENSE.
IT'S GOOD TO HAVE A 10-YEAR LOOK TO SEE WHAT HAS CHANGED IN THAT PERIOD OF TIME.
THERE HAS BEEN SOME OTHER SIGNIFICANT CHANGES ON OUR ISLAND AS WELL AND I THINK THAT WOULD BE A REASONABLE REQUEST TO THE APPLICANT.
THAT'S IMPORTANT FOR US PLANNING OUR FUTURE INFRASTRUCTURE AND POLICIES THAT AFFECT ALL OF OUR RESIDENTS.
DAVID SMITH: MELISSA PENLAND, AS THE OWNER OF LONE STAR RALLY, SHE AGREES TO THAT.
[OVERLAPPING] JUST A LITTLE CLEARANCE [OVERLAPPING].
BRIAN MAXWELL: SHE IS SITTING IN THE AUDIENCE.
DAVID SMITH: LOOK, THE PREVIOUS IMPACT STUDY WAS DONE AT OUR REQUEST.
WE CHOSE THE COMPANY THEY PAID HALF.
NEVERTHELESS, WE WILL WORK OUT SOMETHING SHE'S AGREED TO.
DAVID FINKLEA: SURE, HOWEVER THAT WORKS AND THE LEVEL OF ECONOMIC IMPACT ANALYSIS, I LEAVE THAT COMPLETELY UP TO STAFF.
THIS WILL COME ON OUR AGENDA WHEN OUR NEXT MEETING.
YOU'VE HAD THE PACKAGE, YOU HAVE THE CONTRACT, THE IMPACT STUDY, AND MY STAFF REPORT.
IF YOU HAVE ANY QUESTIONS, FEEL FREE TO ASK OR REACH OUT TO THE CITY MANAGER AND WE'LL ANSWER THEM FOR YOU.
WE WILL PLACE THIS FOR A CONSENT AT THE NEXT CITY COUNCIL MEETING.
[00:50:04]
BRIAN MAXWELL: I WILL TELL YOU, THEY ARE AS FAR AS BIG EVENTS GO, MELISSA IS FANTASTIC TO WORK WITH.BRIAN MAXWELL: WHILE WE'RE HERE.
JUST MELISSA, IF YOU WOULDN'T MIND STANDING UP.
SHE HAS BEEN RUNNING LONE STAR RALLY FOR HOW MANY YEARS NOW, MELISSA? MELISSA PENLAND: THIS IS MY 15TH.
BRIAN MAXWELL: FIFTEENTH YEAR.
WHAT OTHER EVENTS DO YOU RUN IN THE COUNTRY RIGHT NOW, MELISSA? MELISSA PENLAND: I'M FROM DAYTONA SO I'M HEAVILY INVOLVED IN THE PLANNING.
THAT'S THE CITY LINE OF WEALTH.
IT'S RUN BY THE CHAMBER AND I'M A VERY BIG PART OF COORDINATING DAYTONA BIKE WEEK ON MY WAY TO STURGIS RIGHT NOW.
WE HAVE A LARGE EVENT THAT AGAIN IS MORE CHAMBER RUN, BUT WE ARE HEAVILY INVOLVED IN THAT, AND OHIO BIKE WEEK, AND MECONIUM BIKE WEEK.
I'M HEAVILY INVOLVED WITH LEESBURG BIKE FEST, WHICH IS RIGHT OUTSIDE OF ORLANDO.
IT'S GOING TO BE AS AN ACTION ITEM ON OUR AGENDA.
ONE QUESTION, DAVID, I HAD FOR YOU.
IT SAYS THIS CONTRACT CAN BE CANCELED WITH CAUSE.
WOULD YOU EXPLAIN THAT A LITTLE BIT? DAVID SMITH: THE CITY OF GALVESTON GENERALLY HAS IN ITS BOILERPLATE THAT WE CAN CANCEL A CONTRACT FOR ANY CAUSE OR ANYTHING LIKE THAT.
WHAT WE FOUND OUT IS DURING COVID, WE ACTUALLY LEFT IT UP TO MELISSA TO CANCEL THE EVENT BECAUSE SHE WAS CONCERNED BRINGING ENLARGED OR HALF-A-MILLION PEOPLE POSSIBLY TO THE CITY OF GALVESTON DURING COVID AND WE FOUND OUT IN THE LANGUAGE IN HER CONTRACT THAT SHE REALLY HAD A HARD TIME BACKING OUT CONTRACT.
BRIAN MAXWELL: SHE DIDN'T HAVE AN OUT [LAUGHTER].
DAVID SMITH: SHE DIDN'T HAVE IT, SO WE THREW THAT PARTICULAR ITEM IN THERE AS WELL.
MELISSA, I HEAR FOR 27, YOU ONLY ALLOW ELECTRIC MOTORCYCLES, SO [LAUGHTER] THAT'LL HELP THE NOISE, JUST KIDDING.
WE'RE NOW MOVING TO ITEM 3C, AND JANELLE.
FIRST OF ALL, BEFORE WE READ THAT, IS THE GLO HERE THIS MORNING? [BACKGROUND] THE CITY MANAGER'S OFFICE.
BRIAN MAXWELL: COULD WE GO GET THEM, KYLE, IF YOU WOULD, PLEASE? KYLE CLARK: THERE GOES MY BAR.
[LAUGHTER] THE RECORD REFLECT THAT.
[OVERLAPPING] DO NOT HAVE A BAR.
BRIAN MAXWELL: BRIAN DOES NOT HAVE A BAR.
KYLE CLARK: BIG ONE BUT I'LL HAVE ONE.
JANELLE, GO AHEAD AND IF YOU WOULD, GO AHEAD AND READ THE- WELL LET'S LET THEM COME IN FIRST.
BRIAN MAXWELL: I'LL LET THEM HAVE THIS END OF THE TABLE.
MARIE ROBB: WOULD YOU GRAB ME A COFFEE? MALE_1: YES.
DAVID COLLINS: THEY CAME IN UNIFORM.
BRIAN MAXWELL: PULL UP THE CHAIR.
I'D LIKE TO HAVE DAVID GREEN RIGHT UP HERE IF WE COULD.
DAVID, [LAUGHTER] COME ON UP HERE, IF YOU WOULD, PLEASE, SIR.
PULL UP A CHAIR AROUND THE TABLE.
DAVID GREEN: GOOD MORNING TO YOU.
JANELLE, WOULD YOU PLEASE GO AHEAD AND READ ITEM 3C, PLEASE?
[3.C. Joint Meeting With The General Land Office To Discuss The Following Items (Brown - 1 Hour) Introductions]
JANELLE WILLIAMS: OKAY.3C, JOINT MEETING WITH THE GENERAL LAND OFFICE TO DISCUSS THE FOLLOWING ITEMS. THE FIRST IS INTRODUCTIONS.
WE TALK ABOUT THE GLO QUITE A BIT HERE WITH THE CITY AND WE'VE TALKED ABOUT IT MORE AND MORE SO AS WE HAVE MORE AND MORE ISSUES AND WITH OUR BEACH ACTION PLAN AND THE AMENDMENT TO THAT BEACH ACCESS PLAN.
THEY'RE LIKE JOINED AT THE HIP WITH US HERE AT THE CITY OF GALVESTON.
WE GREATLY APPRECIATE THEIR SUPPORT IN THE PAST.
BUT WE'RE HERE TO EDUCATE OURSELVES, ASK SOME QUESTIONS, DEVELOP A DISCUSSION WITH THE GLO AND ALSO PUT A FACE TO THE GLO SO THAT WE CAN SIT DOWN AND THANK YOU AGAIN FOR ALL THAT YOU'VE DONE.
IF YOU WOULDN'T MIND, DAVID, IF WE COULD GO AROUND THE TABLE AND EVERYBODY COULD INTRODUCE THEMSELVES, PLEASE, SIR.
I'M THE SENIOR DEPUTY DIRECTOR FOR THE COASTAL PROTECTION DIVISION.
I KNOW WE HAVE SOME OTHER FOLKS HERE FROM OTHER DIVISIONS, TWO FROM OUR COMMUNITY DEVELOPMENT REVITALIZATION AND GOVERNMENTAL RELATIONS OFFICE, AND ALSO OUR LEGAL OFFICE.
I DON'T KNOW IF, DAVID, YOU WANT TO START.
I'M WITH OUR OFFICE OF GENERAL COUNSEL, AS THE EXTERNAL HEAD OFFICE.
BRIAN MAXWELL: GLAD TO HAVE YOU.
MELISSA WASHINGTON: I'M MELISSA WASHINGTON.
I'M A MANAGER WITH THE INTERGOVERNMENTAL RELATIONS TEAM DIRECTLY CONNECTED WITH
[00:55:02]
THE COMMUNITY DEVELOPMENT AND REVITALIZATION GROUP, DISASTER RECOVERY.STEPHANIE DAVIDSON: I'M STEPHANIE DAVIDSON WITH GOVERNMENT RELATIONS.
ANYTHING ELSE THAT THAT GLO OFFERS AS WELL.
WE WERE GOING TO START WITH AN INTRODUCTION AS WE HAVE DONE, AND NOW WE'LL GO INTO THE RESPONSIBILITIES OF THE GLO.
[3.C.1. Brief Description Of The Responsibilities Of The General Land Office]
WE'LL HAVE, IF YOU WOULDN'T MIND, DAVID.DAVID CAN LEAD THAT OFF AND THEN I THINK MELISSA AND STEPHANIE WANT TO SAY A FEW WORDS, SO GO RIGHT AHEAD.
THE GLO, WE OVERSEE THE STATES COASTAL PROGRAMS AND THOSE ARE THE PROGRAMS THAT I'M OVER AT THE LAND OFFICE.
THE LAND OFFICE DOES A LOT OF OTHER THINGS TOO, FROM MANAGING THE ALAMO TO THE COMMUNITY DEVELOPMENT OR REVITALIZATION, WHICH I'M ALSO WILL TALK ABOUT.
THEN ALSO A BUNCH OF DIFFERENT PROGRAMS THAT WE HAVE FOR VETERANS AND THEN MANAGING STATE LANDS AND GENERATING REVENUE FOR THE PERMANENT SCHOOL FUND.
IN COASTAL PROGRAM, WE HAVE THREE MAIN DIVISIONS.
ONE IS FOR ESSENTIALLY COASTAL LEASING.
ANYTHING OUT IN THE WATER WE HAVE LEASES FOR AND EASEMENTS FOR AND DIFFERENT OTHER AGREEMENTS THAT WE HAVE WITH PARTIES SO THAT THEY CAN USE THOSE STATE LANDS THAT ARE SUBMERGED UNDERWATER.
WITH THAT, WE ALSO HAVE COASTAL PLANNING DIVISION IN THAT GROUP THAT HELPS WITH THINGS LIKE THE COASTAL TEXAS STUDY WITH THE CORPS OF ENGINEERS AND WORKS WITH OTHER LOCAL COMMUNITIES ON THINGS LIKE THE MASTER PLAN THAT WE PUT TOGETHER TO SHOW THE NEEDS OF ALL THE DIFFERENT COMMUNITIES ALONG THE COAST.
THEN WE HAVE AN OIL SPILL DIVISION THAT RESPONDS TO OIL SPILL THAT'S OUT THERE FROM ANY DROP IN THE WATER ALL THE WAY UP TO GIANT SPILLS LIKE THE BP SPILL.
WE HAVE ABOUT 50 OIL SPILL RESPONSE OFFICERS THAT ARE OUT THERE AND I KNOW THERE'S CONCERN RIGHT NOW WITH A LOT OF TAR BALLS THAT ARE SHOWING UP.
WE'RE GOING IN RESPONDING TO THOSE, TAKING SAMPLES OF THOSE AND SENDING THEM OFF TO TRY TO FIND OUT WHERE THOSE MIGHT BE COMING FROM IF THEY'RE NOT JUST NATURAL SEEPAGE JUST HAPPEN AT THIS TIME OF YEAR.
THEN WE HAVE OUR COASTAL RESOURCES DIVISION, WHICH WITH ME HERE AS ANGELA SUNLEY WHO'S THE DEPUTY FOR THAT PROGRAM, AND THEN ALSO NATALIE BELL, WHO IS OVER THE RESOURCE DIVISION WITHIN THAT PROGRAM.
THEY DO A WHOLE HOST OF THINGS FROM MONITORING AND MANAGING OUR BEACHES AND DUNES TO MAKE SURE THAT THERE'S PROPER ACCESS AND THAT WE HAVE A COUPLE OF DIFFERENT PROGRAMS TO HELP FUND THOSE ACCESS PROGRAMS AND ALLOW LOCAL COMMUNITIES TO BE ABLE TO USE FUNDS THAT THEY GENERATE CALLED THE BEACH USER FEE AND THE BEACH MAINTENANCE REIMBURSEMENT PROGRAM.
THEN WE ALSO HAVE MONITORING PROGRAM WHERE WE LOOK AT THE QUALITY BACTERIA ON BEACHES AND PROVIDE NOTIFICATIONS TO THE PUBLIC ABOUT THOSE AND WORK WITH THE RESEARCH INSTITUTIONS ON THAT TO MAKE SURE PEOPLE KNOW WHAT THE BACTERIA LEVELS ARE ON BEACHES.
THEN WE HAVE A LARGE GRANT PROGRAM.
MAINLY PEOPLE PROBABLY HAVE HEARD OF THE CEPRA PROGRAM.
MARIE ROBB: CAN YOU JUST SEE WHAT THAT STANDS FOR, FOR THE RECORD.
DAVID GREEN: THE COASTAL EROSION RESPONSE AND PROTECTION ACT.
IT WAS PASSED ABOUT 30 YEARS AGO AND IT'S STATE FUNDING.
IT'S MAINLY BEEN GENERAL REVENUE THAT'S BEEN PROVIDED, BUT LUCKILY, THROUGH WORK WITH LOCAL COMMUNITIES, THE CITY, THE PARK BOARD, COUNTIES FURTHER SOUTH AS WELL, HELPED US TO GET A DEDICATED FUNDING SOURCE THROUGH THE HOT TAXES, THE HOTEL OCCUPANCY TAXES.
YOUR OWN TAXES WHEN PEOPLE COME DOWN HERE AND THEY'RE USING THE BEACHES THAT THOSE FUNDS GO BACK AND ARE USED FOR EROSION RESPONSE PROJECTS, MAINLY BEACH NOURISHMENT PROJECTS THAT WE INSTITUTE HERE.
WE HAVE A NUMBER OF THOSE THAT HAVE BEEN INSTITUTED IN THE PAST IN THIS AREA AND HAVE A LOT MORE PLANNING GOING FORWARD.
ANOTHER PROGRAM THAT'S JOINED WITH THAT IS THE GOMESA FUNDS THAT WE GET.
THE COUNTY ALSO GETS FUNDS FOR THAT.
THEY GET ABOUT 25 PERCENT AND WE GET EACH OF THE COUNTIES ON THE COAST DOES, AND WE GET 75 PERCENT.
BRIAN MAXWELL: WHAT DOES THAT STAND FOR? DAVID GREEN: IS THE GULF OF MEXICO ENERGY SECURITY ACT, AND IT ALLOWS FOR OFFSHORE REVENUE THAT'S GENERATED BY FEDERAL PRODUCTION OF OIL AND GAS TO GO BACK TO THE STATES TO BE USED FOR BASICALLY IMPACTS TO THOSE ENERGY USAGES.
WE CAN USE THEM ESSENTIALLY FOR THE SIMILAR THINGS TO CEPRA, WHICH IS MAINLY AGAIN ON COASTAL EROSION PROJECTS, IS WHAT WE'VE BEEN USING THEM FOR, BUT WE CAN USE THEM FOR OTHER THINGS TOO, LIKE DIFFERENT PROJECTS THAT ALLOW FOR ACCESS AND JUST HELP ALONG THE COAST TOO.
THEN FINALLY, WE HAVE OUR COASTAL MANAGEMENT PROGRAM, WHICH IS FUNDED THROUGH NOAA, THIS COASTAL ZONE MANAGEMENT ACT THAT NOAA ADMINISTERS AND THEY PROVIDE US A LITTLE BIT OF FUNDING EVERY YEAR THAT WE CAN USE FOR DIFFERENT THINGS TO HELP FROM STUDIES TO PROVIDING BETTER ACCESS AND THINGS LIKE THAT.
THERE'S A WHOLE HOST OF GRANTS AND FUNDING THAT WE HAVE THAT CAN HELP BETTER THE COMMUNITY, HELP PROTECT THE COMMUNITY, AND THEN ALSO HELP PLAN FOR THE FUTURE SO THAT WE CAN INSTITUTE THINGS WITH GOOD KNOWLEDGE AND UNDERSTANDING.
WE HAVE WORKSHOPS EVERY YEAR THAT WE PUT FORWARD IN THE SPRING, AND THEN IN THE SUMMER, THE COMMISSIONER WILL SIGN OFF AND AGREE THAT THOSE PROJECTS THAT ARE
[01:00:02]
APPLIED FOR TO MOVE FORWARD.THEN, WE FORM AGREEMENTS WITH LOCAL COMMUNITIES AND NON-PROFITS ON INSTITUTING THOSE PROJECTS.
BRIAN MAXWELL: HOW MANY EMPLOYEES JUST THE GLO HAS, DAVID? DAVID GREEN: [LAUGHTER] GOOD QUESTION.
PROBABLY 6-700? MELISSA WASHINGTON: OVER 600.
MELISSA, I KNOW YOU AND STEPHANIE WORKED TOGETHER.
MELISSA WASHINGTON: WELL AND I THANK DAVID FOR GOING OVER EVERYTHING COASTAL BECAUSE I'M LEARNING SOMETHING NEW EVERY DAY.
I'M LEARNING A NEW FACE EVERY DAY.
I'VE BEEN WITH THE GLO FOR FIVE YEARS RIGHT AFTER HARVEY HIT, AND HAVE LEARNED A LOT BECAUSE THE GLO IS NOT JUST COASTAL.
THERE ARE A LOT OF DIFFERENT UNIQUE THINGS THAT WE DO COVER THROUGHOUT THE STATE OF TEXAS.
I'M JUST FORTUNATE ENOUGH TO BE ABLE TO MANAGE A GROUP THAT WAS AFFECTED BY HURRICANE HARVEY, AND DOES COME THROUGH THAT HUD FUNDING.
STEPHANIE HAS JUST JOINED OUR TEAM, AND WE'LL BE FOCUSING MAINLY GALVESTON COUNTY, CITY OF GALVESTON, AND SOME OF HARRIS COUNTY.
SO WE ARE YOUR CONNECTION TO THE STATE, SO WHENEVER YOU GUYS HAVE QUESTIONS, I'M PROBABLY GOING TO TURN ANYTHING COASTAL TO DAVID IMMEDIATELY.
BUT ANYTHING ELSE, WE ARE YOUR CONNECTION SO YOU DON'T HAVE TO NAVIGATE SOME OF THE TRAPPINGS OF AUSTIN.
I'M GOING TO LEAVE THESE FOLDERS HERE THAT HAVE A MAJORITY OF WHAT I'M BRIEFLY GLOSS OVER HERE, AND OUR CARDS ARE IN HERE IF YOU HAVE ANY QUESTIONS.
[NOISE] GLO ACTUALLY HAS MULTIPLE DIFFERENT DIVISIONS SERVICING THE CITIZENS OF TEXAS, AND THE FIRST MAIN GROUPING IS LAND, ENERGY, AND EDUCATION.
THE STATE OF TEXAS GENERAL LAND OFFICE IS THE OLDEST STATE AGENCY IN TEXAS, AND IT WAS CHARGED WITH MANAGING STATE LANDS.
SO STATE LANDS, MINERAL RIGHTS, OVER 13 MILLION ACRES IN THE STATE OF TEXAS.
ALL OF THOSE FUNDS ARE USED IN THE PROFITS OF THOSE FUNDS OR BE ABLE TO USE FOR THE PERMANENT SCHOOL FUND, WHICH FUNDS K THROUGH 12 EDUCATION.
THAT INCLUDES COASTAL BEACHES, SUBMERGED LANDS, AND THEN ACREAGE THROUGHOUT THE TIMBERLAND IN EAST TEXAS.
OUR SECOND MAIN FOCUS IS VETERANS.
THE VETERANS LANDLORD OFFERS LAND, HOME, AND HOME IMPROVEMENT LOANS AT NINE LONG-TERM CARE FACILITIES THROUGHOUT THE STATE OF TEXAS.
FOR VETERANS, THEY HAVE AN ORAL HISTORY PROGRAM, AND A CALL CENTER FOR VETERANS.
THIRD, WHICH IS ACTUALLY A NEW GROUPING OF DIVISIONS, ARE ARCHIVES AND RECORDS, WHICH IS HOME TO 35.5 MILLION DOCUMENTS AND 45,000 MAPS, IS HOUSED IN THE STEPHEN F.
IT TRACES ALL OF THE PUBLIC LANDS BACK TO 1561.
SO IF YOU'RE EVER IN HOUSTON , [NOISE] THEY DO DO A FREE TOUR.
IF ANY GROUPS WANT TO GO AND SEE ALL OF THE FABULOUS HISTORY THAT GOES ALONG IN MAP FORM.
THAT GROUP ALSO PROVIDES A LOT OF INFORMATION TO TEXAS TEACHERS, THOSE WHO ARE DOING US OR TEXAS HISTORY, AND FORTH IN SEVENTH GRADE, THEY'RE ABLE TO ACCESS THAT THROUGH LESSON PLANS, GUIDES, THINGS OF THAT NATURE.
BUT THEY ALSO HAVE NOW ROLLED IN ARCHIVES, AND THE ALAMO HAVE ROLLED INTO WHAT WE'RE GOING TO CALL IT A HERITAGE DIVISION AT THE GLO.
BECAUSE THE ALAMO WORKING WITH THE CITY OF SAN ANTONIO IS TO PROMOTE AND PRESERVE THAT SHRINE OF TEXAS LIBERTY.
SO COMMISSIONER BUCKINGHAM HAS MADE THAT ONE OF HER FOCUSES TO BE ABLE TO PRESERVE NOT ONLY THE NATURAL RESOURCES IN TEXAS, BUT THINGS THAT HAVE HISTORICAL CONTEXTS THAT NEEDS TO BE PRESERVED IN THE STATE AND NOT JUST OUR NATURAL LANDS.
THE FOURTH, WHICH IS THE ONE THAT I FOCUS ON THE MOST, IS THE RECOVERY.
THE GLO THROUGH THE COMMUNITY DEVELOPMENT REVITALIZATION GROUP, WE DO NOT DO ANYTHING PRE STORM, BUT AFTER THE STORM, AFTER A PRESIDENTIAL DISASTER, CONGRESS ALLOCATES MONEY TO STATES TO BE ABLE TO HELP THEIR CITIZENS RENEW, AND REPAIR.
THE MONIES THAT HAVE COME DOWN ARE USED FOR FUTURE MITIGATION, AND FOR HELP TO RESTORE PEOPLE BACK TO THEIR FORMER SELVES.
WE NEVER GOING TO GET ENOUGH MONEY TO MAKE ANYONE WHOLE, OR TO BE ABLE TO SOLVE ALL OF THE PROBLEMS THAT WE DO OUR BEST TO BE ABLE TO HELP THROUGH HOUSING, THROUGH RECONSTRUCTION, REHABILITATION.
THERE WAS A REIMBURSEMENT PROGRAM THROUGH HARVEY, AND THERE IS ALSO LOTS OF PLANNING STUDIES.
THERE ARE THINGS THAT ARE ABLE TO BE ABLE TO HELP INFRASTRUCTURE, AND BUYOUTS,
[01:05:02]
AND ACQUISITIONS, AND MULTIPLE TOOLS TO BE ABLE TO PUT IN THE JURISDICTIONS THROUGHOUT THOSE AFFECTED REGIONS POCKETS TO BE ABLE TO HELP THEIR CITIZENS.SINCE THE GLO HAS BEEN ABLE TO WORK THROUGH THIS HUT, ALLOTTED MONIES, OVER $14 BILLION HAS COME THROUGH OUR AGENCY FOR RECOVERY MITIGATION FOR RITA, DOLLY, IKE, THE 2011 WILDFIRES, THE 2015 AND '16 FLOODS, HARVEY, AND THEN MOST RECENTLY THE 2018 AND THE 2019 FLOODS.
IN THIS PACKET, THERE'S AN OVERVIEW OF SOME OF YOUR ICP PROJECTS WHICH ARE FOR THE MOST PART COMPLETE, AND THROUGH THROUGH ALL OF THEIR CLOSE OUTS, THERE IS ONE PIECE OF A TWO-POINT TO ALLOCATION THAT SHOULD BE FINISHED AT THE END OF NEXT YEAR IN 2024.
BUT WE DO HAVE ONE SPECIFIC PERSON WHO ONLY DEALS WITH THE CITY OF GALVESTON, AND SOME OF THE COUNTY CONTRACTS, HER NAME IS LINDA JOHNNY, SHE WAS NOT ABLE TO JOIN US TODAY.
BUT THIS IS HER JOB IS TO DO EVERYTHING TECHNICAL ASSOCIATED WITH THESE PROJECTS.
TO MAKE SURE EVERY HUD BOX GETS CHECKED, TO MAKE SURE ALL OF THE ENGINEERING GOES THROUGH AND THINGS STAY ON TRACK FOR YOU TO BE ABLE TO MAKE ALL THE BENCHMARKS THAT YOU NEED TO BE ABLE TO STAY WITHIN THE CONFINES OF OUR PROGRAM.
WE HAVE GROWN EXPONENTIALLY SINCE I ESPECIALLY WITH HARVEY.
BECAUSE HARVEY COVER 48 COUNTIES, EXCLUDING HARRIS COUNTY AND THE CITY OF HOUSTON.
THE PORTFOLIOS ARE WIDE ENLARGE, AND WE DIDN'T JUST THE EMPLOYEES, PROBABLY, I GUESS THEY STARTED WITH ABOUT 25 PEOPLE BEFORE HARVEY AND WE'RE NOW OVER 200 IN THE COMMUNITY DEVELOPMENT GROUP.
MARIE ROBB: BECAUSE YOU'RE STILL RECEIVING YOUR MONIES THROUGH HUD, DOES IT STILL COME TO THE LOW TO MIDDLE-INCOME RESTRICTION TO US? MELISSA WASHINGTON: THAT'S A NATIONAL OBJECTIVE OF HUD.
WE HAVE TO MEET ONE OF THEM TO BE ABLE TO RECEIVE FUNDS IN THOSE AREAS.
MARIE ROBB: JUST CRAZY BECAUSE STORMS DON'T PICK ECONOMIC BARRIERS.
MELISSA WASHINGTON: NO, MA'AM, WATER DOES NOT CARE OR WHERE YOU LIVE, BUT UNFORTUNATELY, THOSE FUNDS DO FLOW THROUGH HUD.
OUR TEXAS DEPARTMENT OF EMERGENCY MANAGEMENT FLOWS THROUGH FEMA.
THEY DO HAVE DIFFERENT RESTRICTIONS, BUT HUD IS THE GUARDIAN OF OUR FUNDS, AND SO WE DO HAVE THEIR RULES, AND WE HAVE TO STICK TO THEM TO BE ABLE TO MAKE SURE THAT WE ARE SERVING EVERYONE.
BRIAN MAXWELL: THANK YOU VERY MUCH.
MELISSA WASHINGTON: SO I JUST WANTED TO LET YOU GUYS KNOW THAT ON GALVESTON WE HAVE BEEN ABLE TO REHABILITATE A OVER 100 YEAR OLD HOME COUNCIL MEMBER LEWIS WAS ABLE TO COME TO THAT HOUSE ON M AND A HALF.
ACTUALLY, A COUPLE OF TIMES WE VISITED THOSE HOMEOWNERS.
THE CITY IS CLOSING OUT ON AVENUE P AND A HALF AND 59 STREETS, WHICH WAS AN INFRASTRUCTURE PROJECT.
I WANTED TO THANK DAN BUCKLEY AND THE CITY, INCLUDING MAYOR, FOR HOSTING THE ANNOUNCEMENTS OF THE COMPETITION AWARDS.
THANK YOU, COUNCIL MEMBER ROBB FOR COMING THAT WAS IN 2021.
THAT AWARD WILL BE $54.3 MILLION TO THE CITY OF GALVESTON, AND I KNOW THAT YOU GUYS ARE IN ENVIRONMENTAL REVIEW AND DESIGN ON THAT.
WE'RE VERY EXCITED TO BE ABLE TO COME AND DOCUMENT THAT PROJECT AS IT COMES THROUGH.
WE'VE ALSO RECEIVE $15.7 MILLION THROUGH HDACS, LATEST REGIONAL MITIGATION PROGRAM WHERE YOUR APPLICATION IS UNDER REVIEW.
LASTLY, AT THROUGH TESSA RUB LESSEES, HARD WORK, THE CITY OF GALVESTON WAS THE FIRST JURISDICTION TO BE ABLE TO MEET ELIGIBILITY FOR WHAT WE'RE CALLING THE LOCAL HAZARD MITIGATION PLAN PROGRAM, AND THAT WILL REIMBURSE ADMINISTRATION COST FOR THE UPDATE OF YOUR PLANS.
SO THANK YOU TO SALLY, BACO, AND TO BRIAN MAXWELL FOR EVERYTHING THAT THEY DO FOR US, MAKING SURE THAT WE'RE ABLE TO CONNECT FOR ALL OF OUR DIFFERENT PROJECTS.
I WILL LET ALL OF YOU GUYS KNOW WHENEVER THERE'S A NEW CELEBRATION OR A KICKOFF, BECAUSE WE'D LOVE TO TALK ABOUT THE GOOD WORK AND THE GOOD THINGS THAT ARE HAPPENING.
SO THAT IN A NUTSHELL, IS A LITTLE BIT OF WHAT THE ENTIRE STATE IS ABLE TO ACCESS THROUGH THE GLO.
WE'RE NOT HOPING FOR ANOTHER STORM, BUT THROUGH CDR, WE'RE HERE WHEN IT DOES, BECAUSE WE NOW HAVE THE INFRASTRUCTURE AND THE HANDS TO BE ABLE TO HELP YOU NAVIGATE WHATEVER WE NEED TO IN FUTURE.
BRIAN MAXWELL: THANK YOU, MELISSA.
STEPHANIE, DID YOU WANT TO SAY A FEW WORDS? STEPHANIE DAVIDSON: NO.
MELISSA, REALLY TOOK THE CAKE THERE, SO SHE HANDLED IT PERFECTLY, I BELIEVE SO.
[01:10:01]
IF THERE'S ANYTHING YOU GUYS JUST REACH OUT TO EITHER ONE OF US OR DAVID WITH COASTAL AND IT WILL BE HERE AT YOUR BECK AND CALL.AS WE CONTINUE ON FOR OUR AGENDA ITEMS HERE, I'M GOING TO INVITE NATALIE AND THE LADY THAT WITH YOU.
IS KYLE HERE? COME ON UP HERE AT THE TABLE, IF YOU WOULD PLEASE GRAB A SEAT.
MAY HAVE SOME QUESTIONS THAT MAYBE YOU WOULD PARTICIPATE IN, SO WE'LL GO FROM THERE.
IT'S SUPPOSED ITEM 3C2, PLEASE, JANELLE?
[3.C.2. Discussion Of The Role Of The General Land Office With The Following:]
JANELLE WILLIAMS: 3C2.DISCUSSION OF THE ROLE OF THE GENERAL LAND BOX.
[NOISE] A, AMENDMENTS TO THE CITIES BEACH ACCESS PLAN.
B, APPROVAL OF BEACH NOURISHMENT PROJECTS, AND C, COUNSEL MANAGEMENT OF BEACH ISSUES..
DAVID, IF THESE WERE QUESTIONS, I THINK THERE'S STILL SOME QUESTIONS ON THE ROAD THAT THE GLO PLAYS IN THE AMENDMENT OR A BEACH ACCESS PLAN, THE PROCESS, THE PRIORITY, THE FLOW EVENT.
THE SAME FOR OUR BEACH NOURISHMENT PROJECTS.
THEN WHEN WE GET TO ITEM C HERE, WE'LL DISCUSS THAT IN MORE DETAIL.
BUT IF YOU COULD EDUCATE US ON HOW THE GLO PARTICIPATES WITH OUR BEACH NOURISHMENT AND OUR IMAGE TO OUR ACCESS POINT.
BOTH OF THESE ARE GOOD EXAMPLES OF PARTNERSHIP AND US WORKING TOGETHER AND COMMUNICATING ABOUT THE NEEDS OF THE CITY AND WHAT THE CITY NEEDS AND WANTS.
WE TRY TO KEEP AN OPEN DIALOGUE WITH BRIAN AND DAN AND EVERYBODY ELSE WITH THE CITY BEFORE A PROJECT IS BEING PRESENTED SO WE CAN TALK IT THROUGH.
BUT FOR THE ACCESS PLANS, SO THE CITY HAS THEIR OWN SPECIFIC PLAN THAT THEY CAME UP WITH AND DEVELOP INTERNALLY AND THEN APPROVE THROUGH CITY COUNCIL AND THEY APPLY TO THE GLO FOR APPROVAL.
THE GLO, WILL REVIEW THAT AND THEN PROVIDE COMMENTS BACK AND EITHER AGREE WITH IT AND PROPOSE IT FOR AMENDMENT AND ADOPTION INTO THE ACTUAL RULES FOR THE GENERAL LAND OFFICE OR WILL SEND COMMENTS BACK AND WORK THROUGH THOSE ISSUES WITH IT, REQUESTED AMENDMENTS TO THE PLAN.
SO THAT'S ESSENTIALLY THE PROCESS.
ONCE WE DO ACTUALLY APPROVE THE PLAN AND THE COMMISSIONERS SIGNS OFF AND SAYS THAT SHE'S FINE WITH IT, IT HAS TO GO TO ACTUAL PUBLIC COMMENT AND THEN BE PUBLISHED IN THE RULES AS AN ACTUAL RULE FOR THE STATE AND THE GLO AND ADMINISTER.
THAT'S JUST A GENERAL OVERVIEW OF THE PROCESS.
WHILE WE'RE ON THAT BEACH ACCESS PLAN AMENDMENT THING, KYLE, HOW DOES IT FLOW HERE? I JUST WANT TO RE-EDUCATE OURSELVES.
WHAT IS OUR FLOW NOW THAT'S GOING TO GO TO THE PLANNING COMMISSION.
IS THAT CORRECT, SIR? KYLE CLARK: YES, SIR.
ANY RECOMMENDED CHANGES TO THE PLAN WILL NOW GO TO THE PLANNING COMMISSION FOR PUBLIC HEARING AND THEIR RECOMMENDATION TO THE CITY COUNCIL.
THEN [NOISE] GLO REQUIRES THAT THE CITY COUNCIL PASSES AN ORDINANCE FOR CHANGE TO OUR PLAN AND THEN ONCE THAT HAPPENS, I PREPARE THE DOCUMENTATION, SAYING THIS IS WHY WE WOULD LIKE TO CHANGE THE PLAN, THIS IS WHAT WE THINK HOW IT IS IN LINE WITH TEXAS ADMINISTRATIVE CODE.
THIS IS WHAT WE WANT TO DO AND THEN WE SUBMITTED UP TO THE GLO FOR THEIR REVIEW.
IF IT DOESN'T PROPOSE TO CHANGE, BEACH ACCESS OR DOING PROTECTION, WE CAN ASK FOR AN EXPEDITED REVIEW.
THAT'S WHAT THEY WANT TO SAY, GET IT.
THEY HAVE THEIR TIME TO REVIEW IT AND THEN RESPOND BACK TO US.
BRIAN MAXWELL: WE DON'T HAVE TO COME BACK AND RE-APPROVE THAT ONCE THAT ORDINANCE IS PROVED HERE AT THE CITY? KYLE CLARK: NO, SIR.
BRIAN MAXWELL: THAT SOUNDS GOOD.
I'M GOING TO OPEN THIS UP FOR QUESTIONS ON AMENDMENTS TO THE BEACH ACCESS PLAN.
ONE QUESTION I HAVE, WHAT CRITERIA DO YOU LOOK AT IN ORDER TO DETERMINE IF THESE AMENDMENTS ARE APPROPRIATE OR NOT.
IS THERE A BIG BOOK THAT YOU GOT? [LAUGHTER] IN OUR STATUTES AND REGULATIONS.
THERE MAY BE OTHER REQUIREMENTS OUTSIDE SPECIFICALLY OUR STATUTES AND REGULATIONS THAT ARE REQUIRED TO BE FOLLOWED.
FOR INSTANCE, FEMA REQUIREMENTS OR OTHER CONSTRUCTION STANDARDS THAT ARE OUT THERE THAT ARE REQUIRED TO BE FOLLOWED AS WELL.
WE'LL MAKE THOSE COMMENTS AND INCLUDE THEM IN.
ANGIE AND NATALIE CERTAINLY HAVE MUCH MORE HURT AND DAVID HAD MUCH MORE DETAIL IN PRACTICE ON THAT.
ANGELA SUNLEY: DURING THE PAST WHEN YOU ALL WERE WORKING THROUGH PLANNING COMMISSION, THE GLO WOULD GENERALLY COME IN AND HELP THE PLANNING COMMISSION, DEVELOP LANGUAGE THAT WOULD ALIGN WITH WHAT OUR STATUTE AND REGULATIONS REQUIRE.
SO WE WOULD TRY TO PREVENT ANY HICCUPS ONCE YOU'VE GOT IT TO CITY COUNCIL AND GOT IT FORMALLY ADOPTED BECAUSE I KNOW IF WE HAVE COMMENTS OR SOMETHING CANNOT BE CERTIFIED AS CONSISTENT, YOU HAVE TO TAKE IT BACK TO THE COUNCIL TO FIX IT.
[01:15:03]
SO FOR US, I THINK THAT HISTORICALLY HAS WORKED REALLY WELL.THAT'S COMING DOWN AND HELPING YOU ALL DEVELOP THE LANGUAGE SPECIFICALLY TO MEET THE STATUTORY AND REGULATORY REQUIREMENTS.
ANGELA SUNLEY: BUT IT'S OUR TEXAS ADMINISTRATIVE CODE AND THE NATURAL RESOURCE CODE IS WHAT WE LOOK AT TO ENSURE THAT THOSE MEET THE REQUIREMENTS UNDER THE STATUTES.
WHAT WOULD I SENT AFTER THE ORDINANCE WAS PASSED? IT WAS ALL THROUGH THE AMENDMENT CHANGES.
IT WAS PROBABLY ABOUT I THINK IT WAS LIKE 70 SOMETHING PAGES.
BUT FOR EACH ONE OF THE AMENDMENTS, I WENT IN AND SAID FOR THE PARKING AT SUNNY BEACH THIS IS WHAT THE GLO REQUIRES, EQUAL OR BETTER PARKING.
THIS IS WHAT'S BEING PROPOSED.
THIS IS HOW WE BELIEVE THAT IT IS MEETING THAT OR EXCEEDING THAT.
I WENT THROUGH EACH ONE OF THOSE AMENDMENTS WITH THAT DOCUMENTATION REFERENCING BACK TO HOW WE BELIEVE THAT IT MEETS THE REQUIREMENTS UNDER THE TEXAS ADMINISTRATIVE CODE OR THE TEXAS NATURAL RESOURCE CODE, AND TIED IT BACK TO THEM AND SAID THIS IS HOW WE BELIEVED THAT WE'RE EITHER RANDOM OR STRANGE IN OR WE'RE MEETING THE REQUIREMENTS AS OUTLINED IN THE REGULATIONS.
I LIKE THAT IDEA ABOUT WORKING WITH THE PLANNING COMMISSION TO HELP SET THE PROPER LANGUAGE AND ALL OF THAT ON THIS.
WHEN WE SEND UP AMENDMENTS, DO YOU LIKE TO SEE ALL COMMENTS AS MAJOR A PACKAGE OR CAN YOU RESPOND TO AMENDMENTS PIECEMEAL AS THEY COME UP? HOW DOES THAT WORK? DAVID GREEN: I THINK IT'S BETTER TO COME AS A PACKAGE BECAUSE THEN WE CAN WORK THROUGH IT ONE TIME AND JUST LIKE WE WERE TALKING THAT ADMINISTRATIVE PROCESS OF THE BACK-AND-FORTH AND THEN HAVING THE CITY COUNCIL ESSENTIALLY HAVE TO APPROVE IT, THEN IF THERE'S AN ISSUE SENDING IT BACK AGAIN, IT'S BETTER TO JUST GO AHEAD AND SUBMIT THEM AS ONE AND THEN GO THROUGH THE PROCESS OF GETTING THAT PASSED.
ANGELA SUNLEY: THESE ACTUALLY REQUIRED TO SUBMIT THE COMPLETE PLAN.
SO THE PLAN HAS TO MEET ALL OF THEIR REQUIREMENTS AND WE HAVE TO HAVE A RED LINE SO THE PUBLIC CAN SEE WHAT THE PLAN WAS PRIOR TO, AND THE ONE IT IS NOW, BECAUSE WE WILL POST THAT OUT FOR PUBLIC COMMENT.
SO IT'S IMPORTANT THAT NOT ONLY THAT SOMETIMES IF YOU JUST CHANGE ONE PARTICULAR ORDINANCE AND YOU MISS ANOTHER PIECE, LIKE SAY IN YOUR ROADS AND RESPONSE PLAN, THEN YOU HAVE CONFLICTING REGULATIONS IN YOUR LOCAL PLAN.
THAT'S WHERE WE CAN REALLY HELP YOU MAKE SURE THAT YOU'RE GOING THROUGH THE WHOLE THREADING OF EVERYTHING, SO IT'S ALL CONNECTED.
YOUR PLAN HAS THINGS LIKE IF YOU HAVE A REASON JUSTIFICATION FOR OUR VARIANCE, AND YOU CHANGE SOMETHING TO THAT VARIANCE, AND NOW THAT UNDOES A PARTICULAR REGULATION THAT YOU HAVE IN ANOTHER SPOT.
SO THOSE ARE ALL THINGS WE LOOK AT THE PLAN HOLISTICALLY.
WE DON'T LOOK AT THE INDIVIDUAL ORDINANCES.
COUNCIL LET'S OPEN QUESTIONS OR ITEMS YOU'D LIKE TO ASK THE GLO ABOUT THE AMENDMENTS NOW TO OUR BEACH ACCESS.
MICHAEL BOUVIER: DO WE HAVE TO APPROVE ACCESS PLAN AS A WHOLE? ANGELA SUNLEY: BUT RIGHT NOW YOU'RE CONDITIONALLY CERTIFIED.
MICHAEL BOUVIER: WHAT DOES THAT MEAN? ANGELA SUNLEY: IN THE PAST THE CITY HAS NOT HAD ALL UP THERE ON THE GROUND, STAFF MEET WHAT'S IN THE PLAN OR THEY DON'T HAVE ENOUGH PARKING SPOTS THAT MEET THE CLOSURES THAT WE HAVE.
YOU HAVE A UNIQUE SITUATION HERE IN GALVESTON.
YOU'RE ONE OF THE ONLY JURISDICTIONS THAT COMPLETELY ELIMINATES VEHICLES FROM THE MAJORITY OF THE BEACHES.
WITH THAT COMES REQUIREMENTS TO MEET THE PARKING, WHICH YOU HAVE TO HAVE ONE SPACE FOR EVERY 15 LINEAR FEET CLOSE.
SO THAT PUTS YOU IN A POSITION WHERE YOU WERE.
THERE WAS A LOT OF HORSE TRADING IN THE BEGINNING ABOUT MOVING THE PARKING AROUND BETWEEN PLACES BECAUSE YOU ONLY HAD CERTAIN AREAS WHERE WE CAN HAVE PARKING, SOME PLACES HAVE ROADS THAT ARE TOO NARROW, THEY CAN'T HAVE PARKING, SO THERE WAS ALL NEGOTIATIONS ABOUT HOW THAT WAS SPREAD OUT ACROSS THE ISLAND.
AFTER IKE WE HAD A LOT OF DAMAGE TO THE PARKS SO THAT PARKING WAS NOT THERE, SO WE HAD TO FIGURE OUT A WAY TO SHUFFLE SOME OF THAT AROUND AND I'VE BEEN HERE FOR 17 YEARS.
I WAS HERE DURING IKE AND WITH THE ORIGINAL CONDITIONAL CERTIFICATION FOR HIS SPEECH TOO.
SO I HAVE A LONG HISTORY WITH WORKING WITH WENDY AND ALL THE FOLKS BEFORE GETTING THAT UP IN ORDER BUT IN UNDERSTANDING THE HISTORY OF IT.
SO NOW OUR GOAL WAS JUST TO GET YOU ALL IN FULL COMPLIANCE OF ALL THE PARKING RIDE, KNOW WHERE THE PARKING SPOTS WERE, SPECIFICALLY IDENTIFY THEM IN YOUR PLAN SO THE PUBLIC KNOWS WHERE THEY ARE.
THOSE ARE THINGS THAT WE STILL HAVE SOME VARIANCES THAT WE NEED TO MAKE SURE THAT YOUR PLAN MATCHES WHAT'S ON THE GROUND AND THAT'S WHERE WE ARE NOW.
I KNOW NOW I CAN PROBABLY SPEAK TO IT TOO.
WE WORKED WITH GLO TO GET SOME MAPS TOGETHER TO MAKE SURE YOU KNOW ALL AND THE SIGNAGE, ALL OF THOSE THINGS WHERE REQUIREMENTS TO GET YOU IN COMPLIANCE.
BRIAN MAXWELL: ANY OTHER USE? MICHAEL BOUVIER: HOW CLOSE? ANGELA SUNLEY: YOU ARE CLOSE, YOU ACTUALLY ARE.
THE ONLY THING THAT WE NEED TO WORK ON IS THE SPEECH AND THE POTENTIAL CHANGES THAT YOU HAVE THERE.
BUT SOME OF THE OTHER STUFF YOU ACTUALLY HAVE THE PARKING SPOTS.
THERE MAY BE SOME PLACES WHERE WE'LL HAVE TO GROUND TO A FEW MORE OF THOSE AGAIN, JUST BECAUSE OF THE WAY THE ROADS ARE.
BUT YOU'RE SO CLOSE, THIS CLOSE.
BRIAN MAXWELL: BEFORE WE MOVE ON TO COUNCIL MEMBER ROBB HAD A QUESTION, NATALIE, YOU SEEMED LIKE YOU WANTED TO SAY SOMETHING.
[01:20:01]
NATALIE: I WAS JUST GOING TO CLARIFY THAT ALTHOUGH YOUR CONDITIONALLY CERTIFIED NOW SINCE WE KNEW THAT YOU GUYS WERE PROPOSING A BUNDLE OF NEW THINGS, THE INTENT WAS TO WAIT UNTIL WE COULD EVENTUALLY CERTIFY THOSE AND THEN FORMALIZE [NOISE] THAT YOU'RE FULLY CERTIFIED AT THAT TIME.MICHAEL BOUVIER: SO THAT WAS THE LAST PACKAGE WE JUST SENT THEM.
DAVID GREEN: BECAUSE WE HAVE TO OPEN UP OUR REGULATORY PACKAGE AND PUT IT OUT TO THE TEXAS REGISTER [NOISE] FOR COMMENT AND STUFF, SO WE COULDN'T CERTIFY LIKE WE HAD AGREED THAT BASICALLY THINGS WERE COMPLIANCE NOW OR THEY WERE BEFORE THE NEW PACKAGE CAME, BUT THEN WE WERE GOING TO PRESENT BOTH OF THEM AT THE SAME TIME.
ANGELA SUNLEY: IN SHORT THEY HAVE ALL OF THE MAPS, THE PLAN HAD TO BE COMPLETE WITH ALL OF THE INFORMATION IN THERE FOR US TO CERTIFY AS CONSISTENT OF ALL.
DAVID LAND: FROM A TIMING STANDPOINT FOR APPROVAL THE RULES BECAUSE THAT GENERALLY TAKES ABOUT SIX MONTHS RATHER THAN AT THE TIME THEY CAME INTO FULL COMPLIANCE.
FOR US TO CERTIFY THAT SINCE THE CITY WAS GOING TO MAKE ALL THESE ADDITIONAL CHANGES, IT MADE MORE SENSE TO DO EVERYTHING AT ONCE BECAUSE THERE'S A 90-DAY REVIEW PROCESS OF THE GLO AND THEN WE HAD SEND ITS RULE MAKING, WE'VE GOT TO POLISH THE PROPOSED RULE, WE'VE GOT TO WAIT FOR THE COMMENT, THEN YOU HAVE TO RE-CERTIFY THAT AS FILE RULE.
THEN IT'S 20 DAYS, SO IT'S EFFECTIVE.
SO IT'S ABOUT A SIX MONTH WINDOW.
SO THAT'S WHY WE WERE WAITING TO GET EVERYTHING COMPLETED SO THAT EVERYTHING IS PULLING COMPLIANCE.
BRIAN MAXWELL: COUNCILWOMAN ROBB AND THEN WE HAVE COUNCILMAN FINKLEA [OVERLAPPING] HELPED GET YOU YOUR PERMANENT FUNDING.
WE ALL DID A LOT OF WORK ON THAT TO GET THE HOT TAX.
WHEN IT COMES TO HOT TAX, CURRENTLY, 57 PERCENT OF OUR HOT TAX COMES FROM SHORT-TERM RENTALS.
PROBABLY 60 TO HIGHER, 70, MAYBE PERCENT OF THE SHORT-TERM RENTALS ARE IN MY DISTRICT.
MAJORITY OF THEM OBVIOUSLY ARE BEACH SIDE, BEACHFRONT, WHATNOT, AND IF A SHORT-TERM RENTAL HAS SIX CARS PARKED AT THEIR HOUSE THAT DOESN'T COUNT AS A PUBLIC PARKING.
ANGELA SUNLEY: FOR US PUBLIC PARKING IS A SPOT.
NOT ONLY FOLKS THAT WOULD NORMALLY PARK ON THE BEACH, SO USUALLY TAKE UP ABOUT 15 LINEAR FEET, THAT'S WHAT WE LOOK AT.
WE LOOK AT THAT SPOT THAT WAS ON THE BEACH, NEEDS TO BE SOMEWHERE FOR THE PUBLIC TO USE AS A PARKING SPOT.
MARIE ROBB: YOU BROUGHT UP ONE OF MY NEXT SUBJECTS, 15 FEET.
THERE IS A SMALL MINORITY OF CARS THAT ARE 15 OR LESS FEET.
ESPECIALLY WHEN YOU LOOK AT TEXAS, WHERE ONE OF THE BIGGEST PICKUP TRUCK, WHICH ARE USUALLY ABOUT 20 FEET.
WHY DO WE STICK TO THAT 15 FOOT NUMBER SINCE IT REALLY ISN'T REALISTIC.
I'VE ACTUALLY GONE OUT AND MEASURED CARS.
I'VE PULLED NATURAL AVERAGES, IT'S SOMEWHERE IN 17-20 FEET, BUT WE'RE STILL USING 15 FEET.
IT'S ACTUALLY A REALLY GOOD QUESTION, WE GET IT A LOT.
BUT THEY DID A LOT OF STUDIES UP AND DOWN THE COAST, LOOKING AT PEOPLE, HOW THEY PARK HEAD-END TO THE BEACH OR BACK-END, WHETHER IT'S A TRUCK, IT'S NOT THE LENGTH OF A CAR, IT'S THE WIDTH OF SPACE THAT PEOPLE GENERALLY WILL USE WHEN THEY ACCESS A BEACH.
IF YOU GO INTO FOR A DAY OR ANYWHERE ELSE, AND YOU HAVE PEOPLE BACK IN ONE RIGHT AFTER THE OTHER, YOU WILL GENERALLY GET SOMEONE OCCUPYING A WIDTH OF 15 FEET BACKED IN, AND THAT'S WHAT THAT WAS BASED OFF OF WITH ALL OF THEIR COOLERS AND EVERYTHING.
CARS 5-8 FEET WIDE DEPENDING ON WHAT IT IS.
THEN YOU HAD THE OTHER LITTLE SPACE THAT PEOPLE WILL PUT THEIR COOLERS AND CHAIRS OUT, UMBRELLAS.
THAT WAS WHAT THEY BASED THAT ON.
IT WAS A SURVEY THAT THEY DID UP AND DOWN THE WHOLE COAST LOOKING AT IT AND THAT WAS THE AVERAGE THAT PEOPLE WOULD GENERALLY USE.
DAVID COLLINS: MAYBE WE SHOULD CONSIDER HEAD-IN PARKING ON THE SEAWALL.
BRIAN MAXWELL: TAKE UP A LANE OF TRAFFIC.
MARIE ROBB: I HAVE ANOTHER QUESTION AND THIS WAS SOMETHING THAT JUST CAME OUT THIS LAST WEEK, HAD A HOMEOWNER SPEEDING ON AN AREA WHERE YOU CAN STILL DRIVE ON THE BEACH, WHICH EVERYONE KNOWS MY GOAL IS TO GET ADEQUATE PARKING OFF THE BEACH SO WE CAN REMOVE THE CARS FROM THE BEACH BECAUSE IT ISN'T GOOD FOR PEOPLE, IT'S NOT GOOD FOR TURTLES, IT'S NOT GOOD FOR NESTING BIRDS.
WHEN YOU'RE TALKING ABOUT A VEHICLE ON THE BEACH, BECAUSE THIS IS BECOMING VERY MUCH AN ISSUE HERE, AN RV IS A VEHICLE? ANGELA SUNLEY: YOU HAVE THE ABILITY AS A LOCAL JURISDICTION TO LIMIT THAT.
YOU CAN LIMIT CAMPING, THE TYPES OF PARKING THAT HAPPENS ON THERE.
I THINK PORTA, DID THEY MAKE REGULATIONS ON RVS? MARIE ROBB: I ALWAYS THOUGHT WE COULD NOT REGULATE CAMPING.
[01:25:02]
ANGELA SUNLEY: YOU CAN.THAT'S ONE OF THE THINGS UNDER THE OPEN BEACHES ACT THAT YOU CAN REGULATE.
MARIE ROBB: BECAUSE THAT'S ANOTHER BIG ISSUE.
BRIAN MAXWELL: TO BE CLEAR ON THAT THOUGH.
WE'VE BEEN TOLD IN THE PAST THAT IF SOMEBODY SAYS THEY'RE FISHING, THEY'RE NOT CAMPING.
WE'VE BEEN TOLD THAT BY YOUR OFFICE, SO WE NEED CLARIFICATION ON THAT.
ANGELA SUNLEY: CAMPING WOULD BE RELATED TO STAYING OVERNIGHT.
BRIAN MAXWELL: WE CAN BAN OVERNIGHT PARKING ON THE BEACHES? ANGELA SUNLEY: YOU CAN NOT BAN OVERNIGHT PARKING, BUT IF THEY'RE CAMPING, LIKE PUTTING A TENT UP AND TENT CAMPING AND YOU DON'T WANT CAMPING ON YOUR BEACHES, YOU CAN REGULATE THAT.
MARIE ROBB: THEY'RE NOT ONLY PUTTING TENTS UP, THEY'RE PUTTING RVS UP [OVERLAPPING] IN A FISHING POLE, NOT FISHING AND THEY'RE SAYING, WE'RE LEGAL BY STATE.
ANGELA SUNLEY: LET ME GO BACK AND LOOK AT THAT, BUT I KNOW [OVERLAPPING].
MARIE ROBB: WE'RE HAVING HOMELESS POPULATIONS, CRIME COMING.
I'M GOING TO SAY THIS, JUST IN PIRATES BEACH WEST, THERE WAS A MAN WHO CAMPED ON THE BEACH.
I DIDN'T HEAR ABOUT IT UNTIL FIVE DAYS LATER NOR DID THE NON-EMERGENCY POLICE NUMBER.
EVERY DAY HE'S ACCUMULATING MORE STUFF, OF COURSE FROM PEOPLE'S HOUSES.
TURNS OUT HE WAS OUT ON WARRANT FROM HARRIS COUNTY AS A SEX OFFENDER, SOMEONE WE DON'T NEED ON OUR BEACH.
BUT BECAUSE OF THESE RULES, WE WOULD LIKE THE ABILITY AT NIGHTTIME TO SWEEP OUR BEACH, TO ELIMINATE THESE HOMELESS CAMPS, TO ELIMINATE THE CRIMES THAT ARE COMING FROM THE BEACH SIDE AND IF YOU COULD GET US CLARITY ON, THAT WOULD BE IDEAL.
BRIAN MAXWELL: IF YOU COULD RESEARCH YOUR THOUGHTS ON THE CAMPING AND ANY INPUT THAT YOU WOULD HAVE FOR THE CITY THAT COMES UP AT THIS MEETING.
IF YOU COULD DIRECT THOSE BACK TO BRIAN AND BRIAN, IF YOU COULD CIRCULATE THOSE TO THE COUNCIL MEMBERS IF YOU WILL.
MARIE ROBB: BRIAN WHY DON'T YOU BRING YOUR CHAIR UP.
[BACKGROUND] COUNCILMAN FINKLEA.
MARIE, ANY OTHER [OVERLAPPING] DAVID FINKLEA: JUST A HOW DO WE WORK WITH YOU QUESTION.
IN OTHER WORDS, HOW DOES THE CITY OF GALVESTON COMMUNICATE TO THE GLO AND I'LL ASK IN ANOTHER WAY, WHO AT THE CITY IS ALLOWED TO COMMUNICATE OFFICIAL POSITIONS OF THE CITY TO THE GLO? IT'S EITHER DIRECTED TO YOU OR TO DAWN, ONE OF THE QUESTIONS.
BRIAN MAXWELL: I THINK OUR FORM OF GOVERNMENT IS THAT THE CITY MANAGER'S OFFICE IS THE OFFICIAL POINT OF COMMUNICATION WITH THE GLO.
DAVID FINKLEA: THEN A FOLLOW-UP QUESTION RELATED TO HAVING A CONDITIONALLY CERTIFIED CITY BEACH ACCESS PLAN.
WHAT'S THE RISK RELATED TO ENFORCEMENT OR COMPLIANCE BY ONLY HAVING A CONDITIONALLY CERTIFIED CITY BEACH ACCESS PLAN? IN OTHER WORDS, WHENEVER WE'RE WORKING TOWARDS IT BUT WE'RE NOT IN COMPLIANCE, WHAT'S THE RISK TO US? ANGELA SUNLEY: FOR US, WE'RE NOT GOING TO COME DOWN AND ENFORCE ON YOU IF YOU'RE WORKING TOWARDS COMPLIANCE, OUR GOAL IS ALWAYS COMPLIANCE.
AS LONG AS YOU'RE MAKING PROGRESS AND LIKE WE HAD A COMPLIANCE PLAN AND YOU'RE CHECKING THE BOXES OFF, WE'RE NOT GOING TO COME DOWN AND END YOUR BEACH USER FEES OR DO ANYTHING LIKE THAT, BUT THE POTENTIAL IS THERE.
WE CAN, IF YOU USE CERTIFIED SOMETHING FOR A BEACH USER FEE, AND WE SAY NO, IT'S CONDITIONALLY CERTIFIED BECAUSE YOU HAVE TO MEET ALL OF THESE THINGS AND YOU DIDN'T MEET THE THINGS WE CAN TELL YOU YOU CAN'T COLLECT THE BEACH USER FEE.
BRIAN MAXWELL: LET'S TALK ABOUT COMPLIANCE A LITTLE BIT.
MOST OF THE COMPLIANCE ISSUES WE FIGHT WITH ARE OUR SIGNS.
WE ARE HEAVILY SIGNED ON OUR BEACH AND THE SIGNS, EITHER THROUGH RUST OR VANDALISM DISAPPEAR PRETTY REGULARLY.
GOD, YOU GUYS KNOW THE TRIALS WE'VE HAD OF TRYING TO KEEP THE SIGNS UP AND KEEP EVERYTHING UP UP THERE.
THAT'S BEEN THE BIGGEST THING.
THE OTHER THING IS IS THAT WE HAVE A STATIC BEACH ACCESS PLAN.
THE COUNCIL PASSES A BEACH ACCESS PLAN THAT'S STATIC.
WE'VE GOT REQUIREMENTS FOR PARKING SPOTS IN AREAS THAT NO LONGER EXIST FOR PARKING SPOTS.
DAVID FINKLEA: WE HAVE RAMPS IN LOCATIONS WHERE YOU DON'T HAVE ACCESS TO THE RAMP.
[OVERLAPPING] ALL SORTS OF THINGS LIKE THAT.
BRIAN MAXWELL: IT'S BECAUSE THE BEACHES, IT'S LIKE OUR BUDGET IN THE BIBLE, IT'S A LIVING DOCUMENT AND THAT'S ONE OF THE THINGS OVER TIME I THINK WE NEED TO WORK MORE CLOSELY WITH THE GLO ON AND MAYBE EVEN THE LEGISLATURE, THAT THESE BEACH ACCESS PLANS, WE PUT A FLAG IN THE GROUND FOR A POINT IN TIME, BUT THAT BEACH IS MOVING CONSTANTLY.
IT'S GROWING IN SOME AREAS AND IT'S SHRINKING IN OTHERS.
SO WE'RE GROWING SPOTS ON ONE END, WE'RE SHRINKING SPOTS ON ANOTHER.
THE SEAWALL'S PRETTY STATIC, AT LEAST WE HOPE IT STAYS THAT WAY, BUT IN BETWEEN, THE ENDS ARE SOMEWHAT OF A CHALLENGE FOR US.
KYLE CLARK: I JUST WANT TO ADD SOMETHING TOO ABOUT THE COMPLIANCE IS THE CITY
[01:30:07]
RECEIVED A LETTER FROM DAVID IN I BELIEVE IT WAS MARCH, THAT WE WERE IN COMPLIANCE WITH THE STUFF.WE'RE STILL CONDITIONALLY COMPLIANT BECAUSE THE GLO IS NOT WITH IT THE, FORM OF PROCESS OF POSTING A TEXAS REGISTER THAT WE HAVE BEEN BROUGHT UP TO COMPLIANCE.
WHEN WE SAY WE'RE NONCOMPLIANCE IT'S JUST A PROCEDURAL FROM THE GLO.
[OVERLAPPING] THEY'RE DOING IT THAT WAY BECAUSE THEY KNEW WE WERE COMING WITH A BEACH ACCESS PLAN AMENDMENT AND LITTLE CUMBERSOME FOR THEM AND US, SO THEY DON'T WANT TO GO THROUGH IT TWICE.
KYLE CLARK: I WANT TO JUST ELABORATE ON WHAT'S HAPPENED SINCE I'VE BEEN HERE, THE SEASON CHARGE OF THE BEACH ACCESS, WE COORDINATE WITH GLO, BUT ALSO THE PARK BOARD IS IN CHARGE OF MAINTAINING SOME OF THESE ACCESSES ONTO THE BEACH, SUCH AS REMOVING SAND, MAKING SURE VEHICLES CAN GET IN.
WE HAD A CASE, WHAT WE'RE GOING THROUGH RIGHT NOW WHERE THEY ARE VERY DRY.
THE PARK BOARD WENT OUT AND DID SOME WORK.
IT WAS BROUGHT TO OUR ATTENTION, IT WAS BROUGHT TO GLO'S ATTENTION.
WE HAD A CALL LAST WEEK WITH ALL THREE OF THE AGENCIES.
WE WORKED ON ADDRESSING THE CONCERNS THAT GLO HAD AND THE CITY HAD.
WE'RE WORKING ON ALL THROUGH THE AGENCIES OR ENTITIES THAT MANAGE THE BEACHES HERE IN GALVESTON, AND I BELIEVE IN THE LAST THREE MONTHS A LOT BETTER THAN WHAT WAS GOING ON WHEN I FIRST CAME ON.
BRIAN MAXWELL: WE HAD DAVID FINKLEA, YOU WERE ASKING QUESTIONS, DAVID.
WE'RE GOING TO COUNCILMAN COLLINS AND THEN BACK.
MARIE ROBB: I WANT TO ADD ONTO HIS QUESTION.
BECAUSE IT'S ABOUT THE BEACH ACCESS PLAN.
IF WE WANTED TO DO AN ORDINANCE TO ELIMINATE RVS, THE MAC TRUCKS, FROM THE BEACH, THAT WOULD NOT BE PART OF THE BEACH ACCESS PLAN.
DAVID LAND: IT WOULD PROBABLY BE CONSIDERED PART OF YOUR VEHICULAR CONTROL PLAN, WHICH IS PART OF THE ACCESS PLAN OR PART OF THE BEACH ACCESS AND PROTECTION PLANS.
JANELLE WILLIAMS: DAVID FINKLEA HAD OTHER QUESTIONS.
DAVID FINKLEA: IT'S A SIDEBAR CONVERSATION THAT I CAN HAVE WITH MR. MAXWELL RELATED TO THE REGULAR INTERNAL PROCESS REVIEW, RELATED TO THE BEACH ACCESS POINT.
BRIAN MAXWELL: COUNCILMAN COLLINS.
DAVID COLLINS: WELL, SOMEONE COULD CORRECT ME IF I'M WRONG, BUT I WAS HERE IN 1978, 1979 WHEN THE CITY DECIDED TO TAKE CARS OFF THE BEACH IN FRONT OF RESIDENCES, THAT WAS PRETTY MUCH THE DECISION THAT WAS MADE, AND YOU DRIVE DOWN THE COAST OF TEXAS, WE ARE PRETTY UNIQUE.
YOU DON'T GO ANY FURTHER THAN JAMAICA BEACH TO FIND A COMMUNITY THAT DOES NOT RESTRICT CARS ON THE BEACH.
THERE ARE SEVERAL AREAS IN THE STATE WHERE THERE'S NO REGULATION AT ALL.
MARIE ROBB: WE HAVE CARS STILL ON OUR BEACH.
DAVID COLLINS: WE HAVE SOME, BUT THOSE ARE ACCESS POINTS FOR THE MOST PART AND WE HAVE A FEW.
MARIE ROBB: THE LATTER PART OF THE BEACH'S DRIVE ON.
DAVID COLLINS: THE WHAT? MARIE ROBB: THE FAR WEST END IS [OVERLAPPING] WITH THAT.
[OVERLAPPING] BUT NONETHELESS, THE POINT WAS TAKING CARS OFF THE BEACH IN FRONT OF RESIDENCES.
THAT IS A CONTINUAL PROCESS WHEN WE'RE GOING THROUGH RIGHT NOW.
WE HAVE A PLAN OR AN AMENDMENT THAT'S COMING TO YOU RIGHT NOW TO CONTINUE DOING THAT.
WE'VE TRIED TO PROVIDE PARKING IN LIEU OF THAT BECAUSE OF THE OPEN BEACHES ACT.
THE OPEN BEACHES ACT REQUIRES THAT OF US AND THAT CAN BE A CHALLENGE AS WE ALL KNOW.
BUT THAT'S SOMETHING I THINK PEOPLE DON'T UNDERSTAND IS THAT FOR MORE THAN 40 YEARS WE'VE BEEN WORKING TO GET CARS OFF THE BEACH IN FRONT OF RESIDENCES.
THERE WERE VERY FEW PLACES WHERE THAT'S STILL TRUE.
THERE ARE A FEW ON EITHER END OF THE ISLAND.
THE STATES DEFAULT POSITION IS PRETTY MUCH CARS ARE ALLOWED ON THE BEACH.
THAT IF WE JUST DECIDED WE DIDN'T WANT BEACH ACCESS PLAN ANYMORE, WE CAN ELIMINATE MOST OF THIS BY JUST PULLING THE BALLOT, LAYING CARS BACK ON THE BEACH.
AM I CORRECT IN THAT? THAT'S WHY WE HAVE A BEACH ACCESS PLAN.
I DON'T KNOW WHAT IT LOOKS LIKE IN MATAGORDA, WHETHER THEY HAVE ON ACCESS PLAN OR NOT BECAUSE YOU CAN PRETTY MUCH ACCESS MILES AND MILES OF BEACH IN MATAGORDA.
I JUST DON'T THINK THE PUBLIC QUITE UNDERSTANDS WHY SOMETIMES.
THEY DON'T UNDERSTAND WHY WE HAVE A BEACH ACCESS PLAN.
THAT IS BECAUSE WE ARE TRYING TO KEEP CARS OFF THE BEACH IN FRONT OF IN FRONT OF PRIVATE RESIDENCES.
WHEN THERE'S NEW DEVELOPMENT ON THE BEACH, WE EXPAND THAT.
WE ALWAYS GET PUSHED BACK ON IT.
ARE YOU DOING IT FOR DEVELOPERS? NO WE'RE DOING IT FOR HOMEOWNERS.
IT'S COMPLEX, ESPECIALLY THE WAY DAVID JUST DESCRIBED THE REGULATORY ENVIRONMENT.
WE CAN ONLY HAVE OUR OWN REGULATORY ENVIRONMENT HERE, WE UNDERSTAND THE REGISTER AND HOW LONG IT TAKES TO GET THINGS THROUGH.
BUT SOMETIMES WE HAVE EMERGENCY SITUATIONS OR ONE-OFF SITUATIONS, 2020 WAS IT NOT THE THE UNNAMED STORM, THE UNDECLARED STORMS DID SO MUCH DAMAGE TO THE BEACH.
[01:35:01]
THAT PUTS US OUT OF COMPLIANCE JUST IN A HEARTBEAT.MARIE ROBB: THEY DIDN'T DALDA REALLY.
DAVID COLLINS: THAT'S WHAT I'M REFERRING TO, THAT PUTS US OUT OF COMPLIANCE.
HOW DO WE DEAL WITH THAT? WHAT RELIEF DO WE GET ON THAT? BECAUSE NEXT MONTH, WE CAN BE OUT OF COMPLIANCE IN SOME MAJOR WAYS.
EVEN AFTER ICAM IT'S TAKEN US THIS LONG TO LOCATE PARKING SPOTS AND TO REORIENT ALL OF IT SO THAT IT FITS AGAIN UNDER THE STATUTORY CONSTRUCTS.
WE'RE NOT GOING TO TAKE AN ENFORCEMENT ROLE WITH LOCAL JURISDICTION.
WE'RE GOING TO TRY OUR BEST JUST TO HELP YOU MANAGE THE FACT THAT IT IS A CONSTANTLY MOVING.
WE UNDERSTAND THAT IT'S CONSTANTLY MOVING BACK AND FORTH AND THAT IT MAY TAKE TIME TO BRING ALL THAT BACK UP, ESPECIALLY IF THEY DON'T HAVE A MAJOR DISASTER.
DAVID COLLINS: THE VECTORS SECOND QUESTION, WHAT IS YOUR ENFORCEMENT AUTHORITY? ANGELA SUNLEY: FOR US, DAVID PROBABLY CAN SPEAK TO THAT.
THE LOCAL PLANS REQUIRED UNDER THE OPEN BEACHES ACT AND THE DUAL PROTECTION ACT.
ANYTHING THAT'S COVERED RELATED TO, THERE'S A LONG LIST OF ITEMS FRANKLY, THAT ARE COVERED BY BOTH OF THOSE ACTS AND THEN ARE RULES UNDER THAT, AND THEN OF COURSE, YOUR LOCAL PLAN.
I GUESS IT DEPENDS ON THE PARTICULAR ISSUE THAT WE'RE LOOKING AT IS WHETHER OR NOT.
BUT IF YOU'RE TALKING ABOUT BEACH ACCESS ITSELF, IN ORDER TO CLOSE THE BEACH ACCESS POINT OR IN ORDER TO, I KNOW YOU MENTIONED THAT THERE'S AN EMERGENCY AND YOU'VE GOT TO DO SOMETHING QUICKLY.
THERE'S A PROCESS THAT YOU CAN DO THAT, THAT'S GOVERNED BY YOUR PLAN.
ANGELA SUNLEY: FOR COMPLIANCE.
IF YOU'RE NOT IN COMPLIANCE AND YOU REFUSE TO COME INTO COMPLIANCE, THEN IT GETS TO THE POINT WHERE WE MAY DECERTIFY YOUR PLAN, WHICH WE HAVE NEVER DONE.
THAT IS THE NUCULAR OPTION THAT WE NEVER TAKE, BUT WE HAVE THE ABILITY TO DECERTIFY.
DAVID COLLINS: WE'RE VERY INTERESTED IN BEING IN COMPLIANCE WITH THE PLAN AND BRING AN AGREEMENT WITH THE GLO BECAUSE WE ARE UNIQUE AND PRETTY MUCH I THINK, ON THE COAST OF TEXAS AND WHY WE DO THIS, WHAT WE DO, AND WHY WE DO IT FOR BENEFIT OF THE RESIDENTS.
ANGELA SUNLEY: OH, I'M SORRY A MINUTE.
I THINK THAT THE RULES THAT THEY DEVELOPED SPECIFIC TO PARKING WAS FOR GALVESTON TO ACCOMMODATE FOR WHAT WAS HAPPENING HERE, TO GIVE YOU THE ABILITY TO STILL HONOR THE OPEN MEASURES ACT AND GIVE PEOPLE ACCESS AND THEN ADD THE PARKING .
DAVID COLLINS: I APPRECIATE THE DESCRIPTION OF THE PROCESS FOR DETERMINING THE 15 FEET.
I NEVER REALIZED THAT YOU WERE TALKING ABOUT IT IN OR TAILGATE IN PARKING TO THE BEACH BECAUSE I JUST ALWAYS THINK OF IT AS LINEARLY.
BRIAN MAXWELL: DAVID COLLINS: THAT WAS WHY I SAID.
BRIAN MAXWELL: [LAUGHTER] WE DON'T ALLOW HEAD IN PARKING ON THE SEAWALL AND NONE OF US HAVE ANY 15 FOOT-LONG CARS HERE.
THAT'S A CHALLENGE FOR THE SEAWALL.
DAVID COLLINS: I CHALLENGE THE COMMISSIONER PUT HER TRUCK IN A 15-FOOT SPACE.
[LAUGHTER] BUT THIS RULES ON PARKING AND THE ACCESS TO THE BEACH APPLY 24 HOURS A DAY.
AM I CORRECT? ANGELA SUNLEY: THAT IS CORRECT.
DAVID COLLINS: WE CANNOT MAKE ANY SPECIFIC REGULATIONS TO PREVENT PARKING OR ACCESS TO THE BEACH AT FOUR O'CLOCK IN THE MORNING ANYMORE THAN WE COULD FOUR O'CLOCK IN THE AFTERNOON.
IS THAT RIGHT? ANGELA SUNLEY: YOU COULD EMERGENCY CLOSE? DAVID COLLINS: NO.
I'M NOT TALKING ABOUT EMERGENCIES.
ANGELA SUNLEY: IN THE SPIRIT OF THE OPEN BEACHES ACT, IT'S SUPPOSED TO BE OPEN.
DAVID COLLINS: EVEN PLACES LIKE STEWART BEACH OR EAST BEACH, PEOPLE CAN ESSENTIALLY.
ANGELA SUNLEY: STEWART BEACH HAS CONDITIONS AROUND IT WHERE THERE'S A FREE PARKING LOT AND SO LONG AS THAT FREE PARKING LOT REMAINS OPEN AND FOLKS CAN WALK TO THE BEACH FROM THERE, IT'S STILL CONSIDERED ACCESSIBLE.
DAVID COLLINS: WELL, DIRECTOR ARE PART OF THE PARK BOARDS- SUNLEY: ESPECIALLY USE AREA.
THE DIRECTOR OF THE PARK BOARDS IN THE AUDIENCE TODAY, I DON'T WANT TO SPEAK FOR HER, BUT IF I'M NOT MISTAKEN, IN ORDER TO CLOSE STEWART BEACH AND SWEEP THE CARS OFF BEACH DON'T WE HAVE PERMISSION FOR THAT? DAVID LAND: I THINK THERE'S A DISTINCTION BETWEEN CLOSING A BEACH AND MAYBE RESTRICTING VEHICLE ACCESS TO IT.
AS LONG AS THERE'S SOME WAY FOR PEOPLE THAT THERE'S PARKING THAT PEOPLE COULD GET TO THAT BEACH, YOU COULD POTENTIALLY HAVE REGULATIONS THAT APPLY TO A CERTAIN BEACH AT DIFFERENT TIME PERIOD, BUT IT WOULD DEPEND ON THE PARTICULAR CIRCUMSTANCES OF.
SO IF YOU WERE WANTING TO REGULATE, GENERALLY A BEACH IS OPENED TO VEHICLES.
THEY CAN GO ON THE BEACH AND PARK.
IT DOESN'T MEAN THAT YOU COULDN'T POSSIBLY AT A CERTAIN TIME, NOT ALLOW VEHICLES, BUT THAT'S DIFFERENT THAN CLOSING THE BEACH ENTIRELY, LIKE GOING IN, SWEEPING THE BEACH AND TAKING PEOPLE SAYING YOU'RE NOT ALLOWED TO BE HERE, SO AS YOU CAN HAVE OFF BEACH PARKING THAT STILL WOULD ALLOW PEOPLE TO ACCESS THAT BEACH.
DAVID COLLINS: THAT SECTIONS A UNIQUE CIRCUMSTANCE, AND THE ONLY TIME I CAN EVER RECALL IT BEING DONE WAS WHEN THE GOVERNOR DECLARED WITH COVID.
WE CLOSED THE BEACH FOR A PERIOD OF TIME.
[01:40:03]
ALL THE MARYMOUNT THAT OCCURRED IMMEDIATELY THEY'RE FOLLOWING, BUT WE HAVE NO INTEREST IN CLOSING THE BEACH, WHAT WE'RE INTERESTED IN IS VEHICULAR ACCESS TO THE BEACH.BEING ABLE TO TAKE CARS, PUSH CARS OFF STEWART BEACH.
AS I SAID, I DON'T WANT TO SPEAK FOR THE PARK BOARD HERE, BUT THERE'S SOME TIMES YOU WANT TO MOVE CARS OFF THE BEACH.
YOU WANT TO BE ABLE TO CLOSE THE VEHICULAR ACCESS TO THOSE AREAS.
BECAUSE IN THE MIDDLE OF THE NIGHT, IT CAN GET GIDDY OUT THERE SOMETIMES.
ANGELA SUNLEY: DO YOU THINK THAT WOULD FIT UNDER VEHICULAR CONTROL PLAN, BUT THEY'D STILL HAVE TO IDENTIFY AREAS THAT FOLKS COULD PARK ALONG.
IT RE ALLY DEPENDS ON THE CIRCUMSTANCES, AND AGAIN, THAT THEY WOULD STILL HAVE TO BE PARKING AVAILABLE.
BRIAN MAXWELL: WHAT YOU'RE SAYING IS IF WE SAID NO VEHICLES ON THE BEACH AFTER 2:00 AM OR 1:00 AM, WE WOULD HAVE TO PROVIDE ALTERNATIVE PARKING FOR PEOPLE WHO JUST HAVE TO GET THEIR 10 AND 3:00 AM.
DAVID COLLINS: BUT WE HAVE FREE PARKING IN ALL THE PARKS.
THERE'S FREE PARKING AT EACH BEACH.
THERE'S FREE PARKING AT APPLE PARK, THERE'S FREE PARKING IN STUART.
ANGELA SUNLEY: THEN AS A MATTER OF IDENTIFYING THAT, SO YOU WOULD SAY.
DAVID COLLINS: I THINK THAT'S IN THE PLAN.
WELL I GUESS MY QUESTION IS THAT WE HAVE A REQUIREMENT FOR SO MANY PARKING SPOTS PER 50 LINEAR FEET ON IT.
OBVIOUSLY YOU DON'T HAVE THAT VOLUME OF PEOPLE AT 3:00 AM AS LONG AS WE HAVE AVAILABLE BEACH PARKING DURING THOSE HOURS.
IF THERE WAS A RESTRICTION OF VEHICLES DURING THOSE HOURS AND THERE WAS A SIGN THAT SAYS NO VEHICLE TRAFFIC UP TO THIS TIME.
PLEASE USE BEACH ACCESS, BLAH, BLAH, BLAH.
THAT'S ACCEPTABLE? ANGELA SUNLEY: YES.
WRITE IT DOWN PARKING FOR THE PEDESTRIANS TO GO TO THE BEACH.
KYLE CLARK: WE HAVE TO MAKE SURE THEY'RE NOT FARTHER THAN HALF A MILE APART.
ANGELA SUNLEY: THAT IS CORRECT.
KYLE CLARK: IF WE WANTED TO LOOK AT SOMETHING LIKE THE LINEAR FEET IS TOO BRIAN MAXWELL: THE BIGGEST ISSUE WE HAVE OUT THERE IS WHERE WE HAVE PEOPLE THAT JUST BRING THEIR RVS, AND WHEN A POLICE OFFICER GOES OUT THERE, THEY POP OUT WITH A FISHING POLE AND SAY WE'RE FISHING, THERE HAD THAT POLE'S NEVER GOTTEN WET.
MARIE ROBB: BACK THE MEN TO THE DUNES AND THEY'RE LETTING GO THERE, GREYWATER AND YUCKY OTHER.
BRIAN MAXWELL: IT JUST PUTS OUR LAW ENFORCEMENT IN A PRECARIOUS SITUATION.
WE WANT TO FOLLOW THE RULES AND IF IT'S ALLOWED, IT'S ALLOWED.
BUT THE RESIDENTS AND THE USERS OUT THERE COMPLAIN AND WE'RE NOT TALKING ABOUT PEOPLE BRINGING THEIR $500,000 TIFF AND MOTOR HOME DOWN THERE.
THESE ARE MOTOR HOMES THAT WERE IN THEIR PRIME, SOMETIMES IN THE '60S AND THEY STAY THERE FOR DAYS.
IS IT OKAY CAL CAN WORK WITH YOU GUYS ON THAT.
BRIAN MAXWELL: WE WILL CONTINUE THIS.
I WANT TO MOVE ONCE WE, I THINK JOHN PAUL HAS A QUESTION.
MARIE, WANT TO MOVE TO BEACH NOURISHMENT, AND QUESTIONS ON THAT.
JOHN PAUL LISTOWSKI: WHEN IT COMES TO BEACH ACCESS IN OUR BEACHES HERE, HOW DO WE COMPARE WITH OTHER CITIES AND COUNTIES ALONG THE COAST IN THE OPINION OF THE JELLO? ANGELA SUNLEY: YOU'VE MADE SOME GREAT STRIDES COMPARED TO WHAT IT WAS IN THE PAST AND WHAT IT IS NOW.
I THINK YOU ALL ARE REALLY MAKING HEADWAY ON THAT.
JOHN PAUL LISTOWSKI: ARE THERE ANY RECOMMENDATIONS ON POLICIES OR ISSUES THAT WE SHOULD BE LOOKING AT? ANGELA SUNLEY: JUST THE ATTACK IS WHERE WE ARE ALWAYS GOING TO GO TO.
WHERE NATALIE AND I ARE GOING TO GO WHEN WE'RE CERTIFYING THINGS.
WE'RE GOING TO LOOK AT WHETHER YOU MET THOSE REQUIREMENTS OR NOT.
THAT'S PRETTY MUCH OUR POLICY HANDBOOK IS.
MARIE ROBB: THIS ACTUALLY IS GOOD.
OUR OWN PLAN IS PART OF OUR ISSUE.
OUR OWN PLAN AND ACCESS AND PARKING, WE ACTUALLY IN OUR PLAN HAVE MORE PARKING THAN IF YOU TOOK THE LINEAR OF THE ISLAND AND YOU TOOK THE HALF, WHAT IS IT? BRIAN MAXWELL: HALF MILE.
WE REQUIRE MORE PARKING THAN WE WOULD ACTUALLY HAVE TO.
BRIAN MAXWELL: THEY HOLD US ACCOUNTABLE TO OUR PLAN.
MARIE ROBB: WELL, THAT'S THE POINT I'M MAKING, OUR PLAN.
THAT IS SOMETHING AS WE LOOK AT FUTURE.
BECAUSE IT IS FRUSTRATING WHEN YOU'RE WAITING FROM ONE THING TO GET APPROVED, THAT WE COULDN'T DO SOMETHING THAT SAYS MAC TRUCKS AREN'T ALLOWED ON OUR BEACHES, BUT WE HAVE TO WAIT UNTIL THIS IS APPROVED, AND THAT'S SIX MONTHS.
BRIAN MAXWELL: WELL, WE ALSO RUN INTO, ON THE SEAWALL, FOR INSTANCE, WE RUN INTO TRAFFIC SAFETY ISSUES, AND WE'RE GOING TO BE WORKING HERE REALLY CLOSELY IN THE NEXT YEAR TO INSTALL SOME PEDESTRIAN CROSSINGS WITH SIGNALS ON THE SEAWALL.
THOSE WILL REQUIRE SOME ALTERING OF THE PARKING ON THE SEAWALL.
[01:45:01]
ULTIMATELY, WE END UP WITH A BETTER EXPERIENCE FOR THE BEACH USER AND A SAFE CROSSING, SO THEY DON'T END UP GETTING HIT BY CARS.BUT IT DOES REQUIRE THAT, AND IF WE HAVE TO CHANGE THE BEACH ACCESS PLAN TO DO THAT, THAT TAKES LONG ENOUGH TO GET THE SIGNAL PUT IN MUCH LESS ALL THE OTHER STUFF.
FLEXIBILITY THERE IS, IS WHAT I TALK ABOUT.
WE'VE RENOURISHED BABE'S BEACH.
WE NEVER NEEDED CROSSINGS ON THE WEST END ON THE SEAWALL BECAUSE THERE WAS NO BEACH THERE.
NOW WE HAVE A BEACH WHICH WE APPRECIATE ALL THE COOPERATION THERE.
BUT NOW I'VE GOT PEOPLE THAT WANT ACCESS THE BEACH.
WE HAVE TO PROVIDE SAFE CROSSINGS.
WELL, PROVIDING THOSE SAFE CROSSINGS, UNFORTUNATELY, THEY TAKE UP A COUPLE OF PARKING SPOTS.
THOSE ARE THE TYPE THINGS WE NEED HELP WITH, AND SHORT OF ALTERING THE WHOLE PLAN.
WE'RE NOT ASKING TO REMOVE 100 PARKING SPOTS, BUT IF I NEED TO REMOVE TWO PARKING SPOTS HERE AND THERE AND I CAN TRY TO REPLACE THEM, BUT WE'RE RUNNING OUT OF REAL ESTATE UP THERE.
THOSE ARE THE THINGS WE NEED HELP WORKING WITH ON OUR PLAN.
MARIE ROBB: THERE'S EVEN SOME JUST GRAMMATICAL AND T CROSSINGS, AND THE EYE DARTING, BUT YOU STILL HAVE TO WAIT.
THEN IT SEEMS LIKE THERE SHOULD ALMOST BE A TWO-LEVEL [OVERLAPPING] MAXWELL: OR LIKE A PERCENTAGE.
LIKE IF WE'RE REQUIRED TO HAVE A 1,000 PARKING SPOTS, THERE OUGHT TO BE SOME PERCENTAGE THAT WE CAN WORK WITH WITH YOU GUYS TO WHERE IF I HAVE TO ELIMINATE A PARKING SPOT TO PUT IN A HANDICAP SPOT OR TO PUT IN A RAMP.
[NOISE] I KNOW WE'RE WORKING WITH THE PARK BOARD ON AN ACCESS RAMP TO ACCESS THE BEACH.
THAT IS GOING TO ULTIMATELY IMPACT A PARKING SPOT OR TWO.
BUT IT PROVIDES ACCESS TO THE BEACH.
THERE'S GOOD THAT COMES WITH IT.
NATALIE: IT'S ALWAYS SOMETHING WE CAN WORK WITH KYLE AND WRITING IT INTO THE PLAN FOR THE SEAWALL SPECIFICALLY.
NATALIE: I KNOW YOU HAVE THAT EXTRA PARKING, OR DEFICIENT PARKING GOES INTO STEWART BEACH, SO WE MIGHT BE ABLE TO WORK WITH THAT.
BRIAN MAXWELL: LET'S MOVE TO BEACH NOURISHMENT.
BRIAN MAXWELL: APPRECIATE THAT.
BRIAN MAXWELL: BEACH NOURISHMENT PROCESS.
[NOISE] HOW DOES THE GLO INTERPLAY WITH THAT NOW, DAVID? DAVID GREEN: YES, SIR.
LIKE I WAS TALKING ABOUT EARLIER, WE HAVE THESE WORKSHOPS THAT WE'LL INVITE LOCAL GOVERNMENTS TO WHEN WE COME UP AND DOWN THE COAST AND HAVE MEETINGS AND INTERACT SEPARATELY AS WELL WITH DIFFERENT FOLKS, KYLE AND CERTAINLY THE PARK BOARD AS WELL, AND FORM PARTNERSHIPS WITH, GET AN UNDERSTANDING OF WHAT THE NEEDS ARE COMING FORWARD, GOOD PLANS TOGETHER, AND THEN WE HAVE AN APPLICATION PROCESS THAT BEGINS IN THE LATE SPRING AND CLOSES AND THEN WE'LL REVIEW THOSE AND THEN FORM AGREEMENTS WITH THE LOCAL GOVERNMENTS IN INSTITUTING THOSE.
THE NEXT BIG PROJECT COMING UP HERE IS THE BENEFICIAL USE DREDGING PROJECT THAT WE'RE DOING WITH CORPS OF ENGINEERS.
THE CITY AND PARK BOARD AND EVERYBODY THAT WE'VE BEEN WORKING ON FOR QUITE A LONG TIME.
WE'VE DONE A LOT OF WORK IN FRONT OF THE SEAWALL, LIKE BRIAN WAS TALKING ABOUT, IT'S BEEN A GREAT PROJECT.
BUT WE WERE REALLY WANTING, AS COUNCILMEMBER ROBB WAS DISCUSSING, TRYING TO GET THAT FURTHER WEST.
WE TRIED REALLY HARD WITH HER EFFORTS AND A LOT OF OTHER PEOPLE TO GET THE CORPS OF ENGINEERS TO AGREE AND THE PORT OF HOUSTON TO AGREE TO MOVE THAT PROJECT FURTHER WEST.
WHICH THEY DID AGREE, BUT JUST NOT AS FAR AS WE'D LIKE.
THAT NEXT PROJECT WILL BEGIN IN OCTOBER OR EARLY NOVEMBER WHEN THE NEXT DREDGING PROJECT OCCURS.
THAT'LL HAPPEN, BUT IT'S GOING TO BE AT 91ST TO THE END OF THE SEAWALL.
THEN AT THAT POINT, THE ENTIRE SEAWALL BASICALLY BEEN NOURISHED IN FRONT OF IT, WHICH IS GREAT FOR THE HOTELS AND EVERYBODY THERE.
NEXT, WE ALSO HAVE LAST CYCLE WE WORKED WITH PART BOARD AND THE CITY ON EXPANDING AND ENGINEERING AND DESIGN OF A TEMPLATE ACTUALLY ON WEST GALVESTON SO THAT WE COULD USE STATE FUNDS OR THE CAP 204 WHICH IS THE CONTINUING AUTHORITIES PROGRAM THAT THE CORPS OF ENGINEER HAS.
MARIE ROBB: WE'LL COMBINE THEM.
DAVID GREEN: YEAH, WE CAN COMBINE STATE FUNDS WITH PRIMARILY USING FEDERAL FUNDS WOULD BE A GREAT OPPORTUNITY FOR US TO REALLY USE THOSE FEDERAL FUNDS TO ACCESS THAT, AND WE WOULD USE THE NEXT DREDGING CYCLE, WHICH WOULD BE IN 2025 TO DO THAT AS WELL.
WE JUST PAY FOR THE INCREMENTAL COST OF THAT, WHICH IS BASICALLY THE TRANSPORTATION OF THE SAND FROM WHERE IT'S BEING DREDGED AND THEN TO WHERE IT GOES.
THAT CAUSES SOME COMPLICATIONS BECAUSE OF THE DISTANCE.
THE CORPS OF ENGINEERS AND THE PORT OF HOUSTON TAKE ON RISK WHEN THEY MOVE SAND FURTHER.
IT ELIMINATES THE AMOUNT OF DREDGES THAT CAN BE USED AND THEN INCREASES THE COST.
THAT'S BEEN THEIR CONCERN AND WE'VE BEEN TRYING TO ALLEVIATE THOSE CONCERNS BY TALKING WITH THEM AND TELLING THEM THAT WE WILL PAY THE EXTRA FUNDING, AND THEN ALSO TALKING WITH THE DREDGING COMPANIES TO SHOW THEM THAT, YES, THERE ARE DREDGES OUT THERE THAT CAN POTENTIALLY DO THE WORK AND NOT CAUSE PROBLEMS WITH THE ECONOMIC ANALYSIS.
THAT'S SOMETHING THAT WE REALLY NEED TO WORK ON WITH YOU ALL, WITH PARK BOARD, AND REALLY WITH OUR DELEGATES IN DC AND ELSEWHERE TO MAKE SURE THAT
[01:50:03]
THE CORPS OF ENGINEERS AND THE PORT OF HOUSTON ARE OKAY WITH THAT PROJECT AND ALLOWING IT TO MOVE FURTHER WESTWARDS.MARIE ROBB: WHAT IS THE STATUS ON THAT DESIGN AND ENGINEERING? DAVID GREEN: THE DESIGN AND ENGINEERING IS PROJECTED TO BE DONE IN OCTOBER, NOVEMBER TIMEFRAME.
THAT WILL BE DONE, AND THEN AS YOU KNOW, WE'VE BEEN WORKING WITH THE PARK BOARD ON AN APPLICATION FOR THIS CAP RECYCLE TO PAY FOR THAT.
THAT'S WHAT WE'RE PLANNING NOW.
THEN EVEN IF THAT BENEFICIAL DREDGE PROJECT DOESN'T GO THROUGH AND THE CAP 204 DOESN'T GO THROUGH, WE COULD STILL USE THAT PROJECT WITH THAT ENGINEERING.
MARIE ROBB: THE GOAL WILL BE TO DO THAT IN 2025.
DAVID GREEN: WOULD BE TO DO IN 2025.
REGARDLESS OF WHETHER IT'S DONE OR NOT, WE WOULD STILL BE ABLE TO MOVE FORWARD WITH THE CAPITAL PROJECT WITH THAT ENGINEERING, AND THEN ALSO WHATEVER DREDGE AMOUNT IS PLACED THERE.
HOPEFULLY, IT'S PLACED THERE IN 2025 THROUGH THE CORPS OF ENGINEERS.
WE WOULD SUPPLEMENT IT AS WELL WITH THAT OTHER ENGINEERING WE'LL HAVE COMPLETED AND THEN BE ABLE TO DO THAT AS WELL TO SUPPLEMENT THAT TO THE EXTENT THAT WE NEED EXTRA SAND THERE.
THEN SEPARATELY, WE'VE BEEN WORKING ON THE COASTAL TEXAS PROJECT WITH THE CORPS OF ENGINEERS ON THAT VERY LARGE PROJECT WITH A DOUBLE TUNED SYSTEM.
THOSE PROJECTS WOULD BE BOLIVAR, GALVESTON, WAS GALVESTON, AND THEN ALSO OVER IN BRAZORIA COUNTY.
THOSE PROJECTS WOULD LIKELY MOVE FORWARD, FIRST OF ALL, THE PROJECTS THERE AND WE'RE WORKING WITH THE CORPS OF ENGINEERS TO GET APPROVAL FOR THAT AND GET FUNDING FOR THAT.
AS YOU ALL LIKELY KNOW, THE STATE OF TEXAS APPROPRIATED $550 MILLION FOR THOSE PROJECTS IN COASTAL TEXAS AND THEN ALSO FOR PREVIOUS PROJECTS IN ORANGE, JEFFERSON, AND BRAZORIA COUNTY FOR IMPROVEMENTS TO LEVIES THERE, OR CREATION OF LEVIES IN ORANGE COUNTY.
THOSE PROJECTS WOULD LIKELY MOVE FORWARD BEFORE THE OTHER GATE SYSTEM BACK SIDE OF GALVESTON PROTECTION PROJECTS, WHICH WOULD BE GREAT, AND THE CORPS THERE WOULD END UP PAYING 65 PERCENT OF THOSE CONSTRUCTION COSTS.
THEN WE WOULD COME FORWARD WITH THOSE PART OF THIS $550 MILLION TO PAY FOR THE CONSTRUCTION AS OUR NON-FEDERAL MATCH, AND THEN WE COULD ALSO SUPPLEMENT THAT AGAIN WITH OTHER FUNDS THAT WE HAVE, CAPITAL FUNDING AND OTHERWISE.
BRIAN MAXWELL: HERE AT THE CITY, WE'RE WORKING WITH THE PARK BOARD FOR A PROCESS OF PROVING THESE BEACH NOURISHMENT PROJECTS.
ULTIMATELY, IT'S COUNCIL'S DECISION ON THAT THROUGH THE CITY OF GALVESTON HERE.
FOR YOUR INFORMATION, HOW WE'RE GOING TO FLOW WITH THAT.
BUT THESE PROJECTS WILL BE APPROVED BY CITY COUNCIL AS WE MOVE FORWARD ON THAT.
LET'S OPEN THE QUESTIONS FOR THE BEACH NOURISHMENT.
ANY COUNCILMAN, ANY QUESTIONS ON THAT? MARIE ROBB: QUESTION, I GUESS [OVERLAPPING] THINK IS WORKING.
[3.C.3. Discussion Of The Determination Of Public And Private Land On Galveston’s Beaches]
LET'S THE ITEM 3C 3, PLEASE, JANELLE.DISCUSSION OF THE DETERMINATION OF PUBLIC AND PRIVATE LAND ON THE GALVESTON BEACHES.
DAVID GREEN: IT'S NOT WORKING WELL.
[OVERLAPPING] THAT THERE'S A LOT OF QUESTIONS, BUT I'M OPENING IT UP TO YOU, DAVID, ON YOUR THOUGHTS.
DAVID GREEN: TO START, I GUESS THERE'S TWO ISSUES.
ONE IS DETERMINATION OF PUBLIC OWNERSHIP ON WEST GALVESTON BEACHES AND THEN OTHER ISSUES THAT WE'VE HAD RECENTLY IN FRONT OF THE SEAWALL.
[OVERLAPPING] THINK IS THE QUESTION.
BRIAN MAXWELL: THE QUESTION IS BASICALLY, I THINK GEARED FROM THE SEAWALL, MORE SPECIFICALLY BABE'S BEACH, WHICH IS WEST OF 61ST.
[OVERLAPPING] IMPORTANT TO CONSIDER THE ENTIRE UNIT.
[OVERLAPPING] GO RIGHT AGAINST THE SEAWALL BEACHES.
DAVID GREEN: MELISSA TALKED ABOUT THIS A LITTLE BIT THAT THE STATE OR THE GLO MANAGES ALL THESE DIFFERENT STATE OWNERSHIP AND PROPERTIES AND GENERATES FUNDING FROM IT BECAUSE THE PUBLIC SCHOOL FUND, AND AS PART OF THAT, WE HAVE A SURVEY DIVISION THAT WILL GO OUT AND LOOK AT OWNERSHIP ISSUES, LOOK AT HISTORIC EASEMENTS AND DEEDS, AND TRY TO MAKE DETERMINATIONS OF WHAT THE OWNERSHIP LINE IS THERE AND THEN THEY'LL ALSO WORK WITH OUR LEGAL DIVISION, COMING UP WITH A DETERMINATION OF WHERE THOSE THINGS ARE, AND SO THAT'S WHAT WE'VE DONE IN FRONT OF THE SEAWALL AND THEN ALSO WITH WEST GALVESTON, IS LOOK AT THOSE HISTORIC DEEDS AND EASEMENTS THAT ARE THERE, HOW THE SEAWALL WAS CONSTRUCTED, AND HOW THERE WAS A DEDICATION FOR AN EASEMENT IN FRONT OF THE SEAWALL AS WELL FOR THAT CONSTRUCTION, AND THEN MAKE A DETERMINATION THAT THERE'S PUBLIC OWNERSHIP OF THAT, WHETHER IT'S ACTUAL FEE SIMPLE OWNERSHIP BECAUSE THERE HAS BEEN EROSION ALL THE WAY BACK TO THE SEAWALL OR WHETHER THERE'S A DEDICATED EASEMENT BECAUSE OF USAGE OF IT BY THE PUBLIC OVER TIME THAN IS ALLOWED THROUGH THE OPEN BEACHES ACT AS WELL.
[01:55:02]
BRIAN MAXWELL: HOW DOES THAT INITIATED THE REQUEST FOR DETERMINATION OF THAT? HOW IS THAT INITIATED? DAVID GREEN: WELL, USUALLY WE'D GET A QUESTION OR WE GET A COMPLAINT FROM SOMEBODY OUT OF, I GUESS IN THE PUBLIC.I THINK THAT'S GENERALLY HOW IT'S HAPPENED IN THE PAST.
DAVID LAND: THERE'S NOT AN ADMINISTRATIVE PROCESS TO DETERMINE LAND OWNERSHIP.
IT'S SOMETHING THAT ULTIMATELY WOULD HAVE TO BE DECIDED BY THE COURTS, AND SO AGAIN, AS DAVE WAS SAYING, THE COASTAL ENVIRONMENT IS DYNAMIC AS I KNOW OTHER PEOPLE HAVE SAID WHERE THE BOUNDARY IS OR THE TOTAL BOUNDARY IS ALWAYS POINT OF CONTENTION.
WE'RE ALSO DEALING WITH THE SEAWALL IS VERY UNIQUE AND I THINK IT WAS BUILT-IN FOUR DIFFERENT SEGMENTS OVER MANY DIFFERENT YEARS, AND SO WHAT MAY APPLY IN FRONT OF 10TH STREET, IT MAY NOT BE THE SAME LAW THAT WOULD APPLY DOWN AT 89TH STREET.
IT BECOMES A VERY QUICKLY, VERY COMPLEX, REALLY LEGAL QUESTION, BUT THERE'S NOT A PROCESS ADMINISTRATIVELY THAT I'M A LANDOWNER, I WANT THE GLO BECAUSE OF COURSE WE OWN STATE OWN SUBMERGED LAND, ALSO CALLED THE COASTAL PUBLIC LAND, THAT BOUNDARY ACTUALLY DEPENDS ON THE ORIGINAL LAND GRANT.
IT'S EITHER AT HIGH TIDE OR HIGHER HIGH TIDE, BUT IT'S A DYNAMIC LINE.
THEN YOU'RE DEALING WITH A SCENARIO WHERE IN FRONT OF THE SEAWALL THERE HAVE BEEN A LOT OF ARTIFICIAL CHANGES.
THERE HAS BEEN FILL, THERE'S BEEN WORK THAT'S BEEN DONE.
IT'S VERY DIFFICULT TO MAKE SOME BLANKET STATEMENT AS TO WHERE A BOUNDARY IS.
YOU REALLY HAVE TO LOOK AT THE SPECIFICS OF AN INDIVIDUAL SITE.
DAVID COLLINS: YOU JUST SAID THERE'S NOT AN ADMINISTRATIVE PROCESS FOR THIS.
I SWEAR DAVID JUST DESCRIBED AN ADMINISTRATIVE PROCESS FOR THIS VERY THING.
DO YOU HAVE A PROCESS FOR MAKING THIS DETERMINATION IF WE HAVE AREAS THAT ARE IN QUESTION, WHICH IS A LOT OF THE AREA IN FRONT OF THE SEAWALL? WE HAVE A LOT OF OPEN QUESTIONS OUT THERE.
[OVERLAPPING] DID YOU KNOW THERE WAS A BRIEF COURT CASE ON IT LAST YEAR, IT DIDN'T REALLY RESOLVE A GREAT DEAL OF THIS OR GOT PUNTED.
DAVID GREEN: I THINK WHAT DAVID'S SAYING IS, THERE'S NOT A STRICT REGULATORY PROCESSES IN PLACE THAT WE HAVE TO DO THIS, AND WE HAVE TO DO THIS, AND WE HAVE TO DO THIS, AS OPPOSED TO WORKING THROUGH THE DIFFERENT CIRCUMSTANCES THAT ARE THERE WITH THE SURVEY DIVISION, IDENTIFYING WHERE THE DEEDS WE'RE LOOKING BACK AT HISTORIC EROSION, WHETHER THERE WAS FILL LIKE DAVID WAS SAYING AND THEN COMING UP WITH THE BEST DETERMINATION WE CAN HAVE OF WHETHER THEY'RE STATE OWNERSHIP OR NOT.
DAVID COLLINS: BUT YOU LEAVE THIS IN A POSITION WHERE ANYONE CAN MAKE A CLAIM AND WE HAVE TO DECIDE SPECIFICALLY TO OBJECT TO THAT CLAIM AND MAYBE TAKE THEM TO COURT BECAUSE CAN WE COME TO YOU AND SAY, CAN YOU GIVE US A DETERMINATION ON THIS PARTICULAR AREA? HOW CAN WE DECIDE IN THIS PARTICULAR SPOT? IF WE HAD A STAKE IN THE GROUND TO BEGIN WITH, A MAP THAT WE CAN WORK FROM, THERE WHERE THE STATES OPINION SAYS THIS.
[OVERLAPPING] FRANKLY, THAT'S WHAT IT WOULD BE IS IT'S AN OPINION.
IF YOU'RE LOOKING FOR A DETERMINATION OF WHERE BOUNDARY IS, YOU'RE GOING TO HAVE TO HAVE A COURT DETERMINE THAT BOUNDARY.
THERE'S NOT AN ADMINISTRATIVE PROCESS.
NOW, THESE QUESTIONS ARISE ALL THE TIME AND WE'RE LOOKING AT A PARTICULAR PROJECT, WE'RE LOOKING AT PARTICULAR TRACT.
WE'RE WANTING TO TAKE SOME CERTAIN ACTIONS ASSOCIATED WITH SOME PROJECT OR WHATEVER IT IS.
WE'RE GOING TO LOOK AT IT, OF COURSE, OUR SERVING DIVISIONS GO LOOK AT IT, OUR LEGAL DIVISION IS GOING TO LOOK AT, WE'RE GOING TO ISSUE AN OPINION AS IT RELATES TO A PARTICULAR PROJECT.
BUT I THINK WHAT YOU'RE TALKING ABOUT IS MAKING A DETERMINATION OF TITLE.
WHERE IS THE BOUNDARY OF TITLE.
[OVERLAPPING] DAVID LAND: IN ORDER TO DO THAT, OBVIOUSLY I KNOW THAT YOU ALLUDED TO THE LAWSUIT LAST FALL, BUT OF COURSE THAT'S ONLY GOING TO BE FOR AN INDIVIDUAL.
[OVERLAPPING] YES, WE HAVE WE HAVE A NUMBER OF THOSE.
THOSE ARE STILL OUTSTANDING CLAIMS THAT IT WAS CLEARLY NOT THIS BEACH, BUT PEOPLE LAY CLAIM TO IT AND JUST DECIDE THIS FALLS TO THE CITY TO PURSUE.
IS THAT THE STATE'S POSITION? DAVID LAND: I GUESS IT DEPENDS.
THE CITY IS NOT CLAIMING OWNERSHIP AS I UNDERSTAND.
NOW, THERE ARE SOME LAWS I BELIEVE THAT ARE IN THIS TITLE.
THERE'S AN EASEMENT FROM THE SEAWALL AND SO FORTH.
BUT IT HAS BEEN THE CITY IN THE PARK BOARDS CONTENTION IN THE PAST THAT THE STATE OWNS CERTAIN PLOTS OF LAND OUT THERE.
[02:00:01]
THE GLO WAS NOT INTERESTED IN WEIGHING IN ON THAT AND SO I THINK THAT'S ONE OF THE MAJOR REASONS THE COURT SAID JAIL IS NOT HERE.DAVID LAND: I KNOW THE THE PARK BOARD, WE'VE HAD SOME DISCUSSIONS WITH THEM.
WE'VE TALKED TO THEM ABOUT IT AND ARE CONTINUING DISCUSSIONS WITH THEM ABOUT IT.
DAVID COLLINS: CONTINUING DISCUSSIONS ABOUT? DAVID LAND: SOME OF THE CONCERNS I ASSUME YOU'RE REFERRING TO THE FRANCHISE AGREEMENTS AND THINGS LIKE THAT FOR [OVERLAPPING] VENDORS AND FOR THE SEAWALL.
THAT IS AN ONGOING DISCUSSION THAT WE'VE BEEN HAVING WITH THEM.
DAVID COLLINS: AN ONGOING DISCUSSION.
[LAUGHTER] SORRY, BUT I'M NOT SURE WHAT THAT MEANS.
WHAT'S THE END POINT THERE? DAVID LAND: AGAIN, WE HAVE A LEASE IN FRONT OF THE SEAWALL WHICH FOR ANY STATE ON LAND THAT'S THERE, THE CITY HAS AT LEASE TO DO AN ARTBOARD TO DO NOURISHMENT, TO OPERATE AS THE RECREATION AREA AND ARE THEY INCLUDED IN CERTAIN AREAS 02:01:01] .
[OVERLAPPING] GOOD POINT AND YOU'RE ABOUT TO GO INTO THIS NEXT NOURISHMENT AROUND 91ST STREET TO THE END OF THE SEAWALL.
YOU KNOW WHO OWNS THAT LAND? DAVID LAND: NOURISHMENT IS A LITTLE BIT UNIQUE BECAUSE IN ORDER TO.
[OVERLAPPING] ARE YOU PUTTING PUBLIC SAND ON PRIVATE BEACH? DAVID LAND: WELL, IF IT'S FOR DEALING WITH DOING A COASTAL EROSION PROJECT, OUR STATUTE, IF IT'S PUBLIC BEACH, WHICH IS DIFFERENT THAN OWNERSHIP OF THE BEACH, YOU DON'T NECESSARILY NEED LAND OWNER CONSENT UNDER CHAPTER 33, THE NATURAL RESOURCES CODE.
DAVID LAND: IF WE'RE JUST TALKING SPECIFICALLY ABOUT PUTTING SAND DOWN, THAT'S DETERMINING WHETHER OR NOT IT'S A PUBLIC BEACH IS CERTAINLY A DIFFERENT DISCUSSION FROM WHETHER OR NOT IT'S PUBLICLY OWNED.
ANGELA SUNLEY: BUT WE ARE REQUIRED TO DO A COASTAL BOUNDARY SURVEY PRIOR TO DOING A BEACH NOURISHMENT.
THAT WILL GO THROUGH THE FORMAL PROCESS.
DAVID COLLINS: COASTAL BOUNDARY SURVEY PROVIDES US WHAT? ANGELA SUNLEY: IT PROVIDES YOU THE LINE BETWEEN PRIVATE PROPERTY AND PUBLIC PROPERTY.
DAVID COLLINS: IS THERE ONE FOR THE EXISTING SEAWALL TODAY? ANGELA SUNLEY: NO.
BEFORE THEY DO ONE ON THAT END, THEY'RE GOING TO DO A COASTAL BOUNDARY.
[OVERLAPPING] ONE FROM 1ST TO 69TH? [OVERLAPPING] ORIGINAL RESPONSE PROJECT IS DONE IN COASTAL BOUNDARY SURVEY HAS TO BE COME IN.
[OVERLAPPING] BENEFICIAL USE A DREDGE.
DAVID COLLINS: IT SHOULDN'T MATTER WHO'S SAYING IT IS.
DAVID LAND: IF IT'S EROSION RESPONSE PROJECT, OBVIOUSLY, IF YOU'RE PLACING SAND THERE, YOU'RE ALTERING WHERE THE BOUNDARY IS.
THE GOAL OF THE STATUTE IS BEFORE YOU DO THE PROJECT, WE'LL DO A SURVEY TO DETERMINE WHERE THE BOUNDARY IS.
WHICH THEN OF COURSE, IT COULD BE SUBJECT TO CHALLENGE BY AN INDIVIDUAL LANDOWNER.
DAVID COLLINS: BUT IT WOULD BE HELPFUL TO US IF WE HAD THAT SURVEY, IF WE KNEW, IF WE HAD A MAP OF WHAT LAND THE STATE SAYS THEY OWN, WHAT IS PRIVATE PROPERTY.
ANGELA SUNLEY: THAT STATUTE WAS ACTUALLY ONLY CHANGED EIGHT OR NINE YEARS AGO.
ANGELA SUNLEY: THAT'S NEW THAT WE REQUIRE A COASTAL BOUNDARY SURVEY WHENEVER WE DO A COASTAL EROSION PROJECT.
FOR THE AREAS THAT HAVE NO SAND IN FRONT OF THE SEAWALL, BEFORE WE DO THAT, THEY WILL RUN A COASTAL BOUNDARY SURVEY AND THE BOUNDARY WILL GO THROUGH THE FORMAL PROCESS OF GETTING ADOPTED AND OUT TO THE REGISTRY PRIOR TO THAT.
[OVERLAPPING] [OVERLAPPING] COULD BE A QUESTION AS TO WHETHER OR NOT.
[OVERLAPPING] IS UP IN THE AIR WHICH IS ESSENTIALLY EVERYTHING 61ST 8 STREET WEST.
[OVERLAPPING] COMPLICATIONS BEYOND JUST THE BOUNDARY THAT WE SET WITH THE EROSION RESPONSE PROJECT.
BRIAN MAXWELL: THE BOTTOM LINE, THE WAY I UNDERSTAND IT, EXCUSE ME, JOHN, THE BOTTOM LINE IS WHEN YOU'RE DETERMINING THE OWNERSHIP OF THAT PROPERTY AT THE BEACH, THAT NEEDS TO GO THROUGH A LEGAL PROCESS TO DETERMINE THAT THE GLO DOESN'T WEIGH IN AND PUT A STAKE IN THE GROUND AND MAKE A DETERMINATION FROM THE OWNERSHIP STANDPOINT OF THIS IS PRIVATE.
[OVERLAPPING] LOTS, NO THERE'S NOT AN ADMINISTRATIVE PROCESS WHERE WE WOULD COME IN AND OBVIOUSLY WE DON'T CONDEMN PROPERTY.
THAT'S CERTAINLY NOT OUR ROLE.
LOCAL GOVERNMENTS MAY HAVE CERTAIN AUTHORITIES THAT THAT THE GENERAL LAND OFFICE DOES NOT.
BUT AGAIN, IT'S GOING TO BE A CASE-BY-CASE INDIVIDUAL.
THE PROPERTY IN THIS AREA IS GOING TO HAVE COMPLETELY DIFFERENT SET OF ISSUES AS ANOTHER PROPERTY IN ANOTHER AREA.
IF THERE ARE PARTICULAR PROPERTIES OR ISSUES OF CONCERN, I'LL BE HAPPY TO WORK WITH YOUR STAFF TO HELP ANSWER THOSE QUESTIONS FOR YOU AS BEST WE CAN.
JOHN PAUL LISTOWSKI: YOU SAID A COUPLE THINGS THERE THAT I WANT TO TRY TO GET CLARIFIED.
YOU SAID YOU USE THE TERM PRIVATE PROPERTY, THAT COULD BE STILL A PUBLIC BEACH? DAVID LAND: UNDER THE OPEN BEACHES ACT, A PROPERTY MAY BE PRIVATELY OWNED, BUT
[02:05:06]
SUBJECT TO A PUBLIC EASEMENT, WHICH AN EASEMENT IS ONLY A RIGHT OF USE.IT'S NOT OWNERSHIP OR TITLE TO PROPERTY.
BASICALLY IN TEXAS, YOU'VE GOT THE WHITE BEACH WHICH IS GOING TO BE SEAWARD OF MEAN HIGH TIDE OR MEAN HIGHER HIGH TIDE DEPENDING ON THE ORIGINAL LAND GRANT.
THE WET BEACH IS GOING TO BE PART OF COASTAL PUBLIC LANDS AT STATE-OWNED.
ABOVE THAT LINE; I'LL JUST USE MEAN HIGH TIDE THAT'S SIMPLEST TERM BETWEEN THERE AND THE LINE OF VEGETATION, THERE MAY BE A PUBLIC EASEMENT BUT THAT IS SUBJECT TO ITEMS OF PROOF OF THAT AN ACTUAL EASEMENT EXISTS.
THERE ARE A NUMBER OF WAYS IN TEXAS YOU COULD GO THROUGH TO PROVE THAT AN EASEMENT EXISTS.
IT'S NOT AUTOMATIC, BUT IF IT IS A PUBLIC BEACH THEN AS I WAS REFERENCING, WE CAN DO DARSHAN PROJECTS AND THINGS LIKE THAT ON THE BEACH FOR A STATUTORY AUTHORITY.
JOHN PAUL LISTOWSKI: [OVERLAPPING] THAT WOULD BE PUBLIC BEACH? DAVID LAND: IT'S A VERY SIMPLE TERM.
IF YOU SEE WHAT IT MEAN HIGH TIDE WHICH MEAN HIGH TIDE IS AN ELEVATION AND IT DOES MOVE EVERY DAY, IT'S A DYNAMIC LINE.
DAVID COLLINS: BUT WHAT THE QUESTION YOU JUST ASKED WHAT WE'RE TALKING ABOUT ACCESS, NOT OWNERSHIP.
DAVID LAND: WE'RE TALKING ABOUT A RIGHT OF USE.
DAVID COLLINS: YEAH, THERE'S TWO DIFFERENT.
IT DOESN'T MEAN WHEN WE SAY PUBLIC BEACH, THE TERM PUBLIC BEACH IS NOT THE STATE OWNS THAT LAND.
IT MAY BE AND IT'S NOT THE STATE'S RIGHT.
IT'S THE PUBLIC'S RIGHT OF USE.
JOHN PAUL LISTOWSKI: LET ME TIE THIS BACK INTO PARKING.
DO WE HAVE TO PROVIDE PARKING FOR A PRIVATELY OWNED PROPERTY THAT IS ON THE BEACH? DAVID LAND: I HAVE TO PROVIDE PARKING.
BY YOU, YOU MEAN THE CITY? JOHN PAUL LISTOWSKI: CORRECT? DAVID LAND: WELL IF YOUR TALKING ABOUT AN AREA THAT AGAIN THESE WERE VEHICULAR BEACHES.
IT'S THE VEHICLE CONTROL PLAN.
JOHN PAUL LISTOWSKI: WELL, LET'S SAY IT.
DAVID LAND: THAT IS REQUIRING THE PARKING.
MARIE ROBB: I THINK THAT QUESTION WOULD BE BETTER SAID.
IF SOMEONE PUT IN A BEACHFRONT DEVELOPMENT AND DID NOT PROVIDE BEACH ACCESS, WOULD THAT BE LEGAL? JOHN PAUL LISTOWSKI: WELL, THAT'S A REALLY GOOD QUESTION.
IF THERE'S A PIECE OF PROPERTY THAT'S PRIVATELY OWNED THAT IS ON THE BEACH, AND IT DOES NOT ALLOW VEHICLES TO DRIVE ON THAT PROPERTY CURRENTLY.
DO WE HAVE TO PROVIDE PARKING FOR IT? ANGELA SUNLEY: YES, BECAUSE THE PUBLIC HAS THE RIGHT TO USE THE DRIVE BEACH SO YOU HAVE TO PROVIDE ACCESS TO THE DRIVE BEACH.
IF THERE'S AN EASEMENT ON IT AND IT'S BEEN 10 YEARS OF USE IN OUR EYES, THAT'S GENERALLY HOW WE DESCRIBE THE LINE OF VEGETATION TO THE WET BEACH BUT IT'S ALSO THE PUBLIC RIGHT TO GAIN ACCESS TO THE WET BEACH TO YOU BECAUSE THAT IS PUBLIC LANDS.
MARIE ROBB: YOU HAVE TO HAVE AN ACCESS.
ANGELA SUNLEY: YOU HAVE TO HAVE AN ACCESS POINTS SO THEY CAN REACH THE WET BEACH.
IT'S THE PUBLIC BEACHES WHICH MEANS THEY HAVE A RIGHT-OF-USE TO THAT, AND THEY ALSO HAVE A RIGHT OF USE TO THE SEA, SO BRINGING TO GAIN TO THE WET BEACH.
BRIAN MAXWELL: NOW LET'S MOVE TO 3C4 PLEASE.
[3.C.4. Discussion Of Allowing Sand Socks To Not Be Considered A Hard Structure On The Beach]
JANELLE WILLIAMS: OKAY, 3C4.DISCUSSION OF ALLOWING BRIAN MAXWELL: THIS IS A BIG ISSUE FOR US HERE, DAVID.
DAVID GREEN: WE RECENTLY APPROVED THE USAGE OF SAND SOCKS OR WE'LL CALL GEO TUBES FRONT OF THE RUBY OR CONDOS AND HOPING TO GET THOSE INSTITUTED SOON.
I KNOW THERE'S BEEN SOME ISSUES GETTING THAT DONE, BUT LOOKING FORWARD TO THAT AND THEN ALSO HAVING SOME NOURISHMENT FRONT OF THAT TOO.
IT DEPENDS LOOKING AT THE CIRCUMSTANCES, WHETHER THEY CAN BE APPROVED OR NOT.
THEY ARE CONSIDERED STRUCTURES ON THE BEACH AND UNDER OUR RULES BECAUSE THEY ARE ESSENTIALLY STRUCTURES.
WE'VE HAD ISSUES IN THE PAST WITH THESE STRUCTURES; ESSENTIALLY THESE TUBES, DEGRADING AND BREAKING DOWN AFTER A STORM BECAUSE THEY'RE MADE OF THIS GEO-TEXTILE FABRIC.
THEN THEY CAN BE REALLY HARD TO REMOVE AND CLEAN UP AFTERWARDS BECAUSE OF THAT, BUT THEY CAN PROVIDE A BENEFIT AND AREAS.
WE WERE FOR THEM AND APPROVE THEM IN THE PAST.
IT'S JUST THAT WE HAVE TO HAVE MEASURES IN PLACE TO MAKE SURE THAT THERE'S SAYING THAT'S PLACED ON TOP OF THEM.
MARIE ROBB: SO MUCH SAND IN FRONT OF THEM.
DAVID GREEN: THEY'RE SAYING IT END UP SEEING IN FRONT OF THEM BECAUSE OTHERWISE THEY BECOME A STRUCTURE THAT PROPELS THE WATER ONTO THE ADJACENT STRUCTURES AND THEN INCREASES EROSION.
THEY CAN BE HELPFUL IN CREATING THE STRUCTURE AND THE DUNES AND PROTECTION, BUT THEY CAN ALSO BE A DETRIMENT IF THEY'RE NOT MAINTAINED PROPERLY.
[02:10:02]
BRIAN MAXWELL: I GUESS THE QUESTION IS HERE WITH OUR ARMY CORPS.IT WAS COMING UP WITH THEIR SURGE SUPPRESSION PROGRAM HERE FOR THIS AREA.
HERE, THEY'RE TALKING ABOUT NATURAL DUNES ON THE WEST END DOWN THERE.
THIS COUNCIL HAS SUPPORTED HAVING THESE OTHER DUNES THAT ARE LIKE A SAND SOCK AND SO FORTH IN THAT AREA, BUT THE QUESTION IS IF THE COURT MOVED IN THAT DIRECTION, WHAT I HEAR YOU SAYING THAT WOULDN'T NECESSARILY BE PROHIBITED.
BRIAN MAXWELL: IT WOULD HAVE TO BE EVALUATED BY YOU AND SO FORTH AND SO ON.
WE PROVIDE A REVIEW AND IT HAS TO GO THROUGH THE COASTAL MANAGEMENT PROGRAM TO BE APPROVED, BUT FISH AND WILDLIFE AND ARE REALLY THE OTHER BIG ENTITIES THAT ARE GOING TO PROVIDE INPUT TO THE CORPS OF ENGINEERS ON THE ALLOWANCE FOR THOSE.
BUT I WILL SAY FOR THE COASTAL TEXAS PROJECT GENERALLY, HOW THOSE DUNES ARE GOING TO BE CONSTRUCTED AND WHERE THE DIFFERENT AREAS THAT'S NOT REALLY DETERMINED YET.
IT'S BEEN A PREFERENCE, AGAIN FOR A NATURAL DUNE SYSTEM.
WE HAVE A GENERAL PREFERENCE AS DO A LOT OF THE OTHER RESOURCE AGENCIES FOR NATURAL DUNE SYSTEMS AS OPPOSED TO GEO TUBES BUT THEY CAN BE COMPLETELY ACCEPTABLE IN CERTAIN AREAS AND I THINK THEY COULD BE ALLOWED UNDER THE COASTAL TEXAS STUDYING AND CONSTRUCTION AS WELL.
MARIE ROBB: I WAS IN A PRESENTATION LAST WEDNESDAY BY AN SULLIVAN.
WHAT IS THE CAPTAIN? DAVID GREEN: YEAH MARIE ROBB: THEY HAS A COUPON ON SERGEANT GENERAL OR I DON'T REMEMBER WHAT HIS INITIALS ARE.
HE IS SAYING THAT THEY ARE OPEN TO REVIEWING THAT BECAUSE THEY SEE THE BENEFITS.
DAVID GREEN: THEY'RE LOOKING FOR POTENTIALLY OTHER HEARTSTRINGS THAT CAN BE USED TOO.
THERE'S OTHER GROUPS THAT ARE PROPOSING THAT AND THINK THAT THAT WOULD BE THE BEST, SO THOSE THINGS ARE UP FOR DISCUSSION CERTAINLY IN SPECIFIC AREAS.
BRIAN MAXWELL: WE HAD COUNCILMAN FINKLEA AND COUNCILMAN COLLINS.
DAVID FINKLEA: MR. GREEN YOU MADE A MENTION OF THE FACT THAT POTENTIALLY IN A STORM OR A DECLARED DISASTER THAT POTENTIALLY BREAKS DOWN, THE FABRIC BREAKS DOWN.
IT BECOMES DIFFICULT TO REMOVE AND IT DID DECLARED DISASTER IN THAT CASE HAPPENED.
WHO HAS THE FINANCIAL RESPONSIBILITY FOR THE CLEVELAND? DAVID GREEN: WELL, THAT'S THE OTHER REQUIREMENT IS THAT WE PUT FINANCIAL RESPONSIBILITY ONTO THE END OF CONSTRUCTING THE PROPERTY ESSENTIALLY.
THOSE ARE THE TWO THINGS AS REQUIREMENT THAT IT WILL BE RENEGED AND COVERED WITH SAND CONSTANTLY AND THAT THERE'S A FINANCIAL RESPONSIBILITY THERE.
BRIAN MAXWELL: DAVID EXAMPLES WHERE THIS HAS BEEN DONE, HAS BEEN EXTREMELY SUCCESSFUL.
THEY STOOD UP TO EVERYTHING IN 2020 WITH VIRTUALLY NO DAMAGE.
MARIE ROBB: THAT'S GOOD KNOWLEDGE..
BEING DESTROYED BY THE WAVE ACTION, WE SAW THAT.
MARIE ROBB: QUITE A NUMBER OF THEM WERE INTACT AND CUT OUT AS WELL.
DAVID COLLINS: THAT WE SAW ON THE ROAD.
I UNDERSTAND YOUR CONCERN, BUT THIS IS SOMETHING THAT I KNOW WE WOULD LIKE TO MOVE FORWARD WITH.
DAVID COLLINS: I KNOW YOU CONSIDER IT A HARD STRUCTURE, BUT IT'S ONLY SO HARD AND THEN WE WOULD LOVE TO BE ABLE TO DO THIS.
DOES ANYONE SEE ANY OPPORTUNITIES FOR FUNDING FOR THIS KIND OF THING? DAVID GREEN: WITH THE COASTAL TEXAS STUDY, THOSE WOULD BE FUNDED BY THE STATE AND FEDERAL GOVERNMENT TO CONSTRUCT THEM AND WE'VE TALKED ABOUT THAT OTHERWISE,.
MARIE ROBB: YOU CAN EVEN DO PRIVATE, PUBLIC PARTNERSHIP, BECAUSE THAT HAS BEEN DONE IN THE PAST TOO.
DAVID GREEN: THAT'S WHAT WE'VE TALKED ABOUT TOO, IS THAT MAYBE THE HOMEOWNER'S ASSOCIATION AREA WOULD PAY FOR THE ACTUAL SAND SOCKS OR GEO TUBES AND THAT WE WOULD PAY FOR THE NOURISHMENT OR THE CITY WOULD POTENTIALLY PAY FOR SOME OF THE DUNE RESTORATION WORK ON TOP OF THAT.
THINGS LIKE THAT, THAT WE COULD PARTNER OUR WORK THROUGH.
DAVID COLLINS: THAT'S SOMETHING WE SHOULD LOOK AT SERIOUSLY.
MARIE ROBB: SOMETHING WE ARE ALWAYS ALWAYS LOOKING AT.
DAVID COLLINS: I'M SO CONCERNED ABOUT, BUT I DON'T KNOW THAT THERE'S ANY PLAN FOR THIS THING.
BRIAN MAXWELL: WELL, WE NEED TO REINSTITUTE OUR COMMUNICATION WITH THE CORE ON THIS TUBE.
DAVID COLLINS: A BIG PIECE OF THIS IS WHERE YOU PUT THEM.
MARIE ROBB: WELL, FOR YOUR EQUIPMENT HOW MUCH YOU FULL FELT THEM.
DAVID COLLINS: BUT WERE WHERE ON THE BEACH THEY GO.
DAVID COLLINS: IT'S GOING TO BE A BIG TAKEAWAYS.
ANGELA SUNLEY: IT HAS BEEN ALWAYS FOR THAT IN OUR STRICT CODES.
MICHAEL BOUVIER: IS IT GO2? ARE YOU TALKING ABOUT SOMETHING THAT'S SYNTHETIC? CAN YOU USE SOMETHING LIKE A ONE TON BALE OF HAY? MARIE ROBB: THAT'S DONE.
WE HAVE THAT TOO AND [OVERLAPPING] .
ANGELA SUNLEY: A HAY BALE DOING THERE.
MARIE ROBB: WHICH OF ALL BIG STRONG COMES IN MINUTES HAY THROUGHOUT THE NEIGHBORHOOD.
KYLE CLARK: THEN WE'RE MONITORING THOSE.
GLO HAS ASKED US TO GO OUT AND DO INSPECTIONS ON THOSE AND REPORT OF HOW THEY'RE LOOKING BECAUSE ANYTHING THAT WE AUTHORIZE, THEY REVIEW BUT THEY DON'T SEE AFTER IT'S BEEN IMPLEMENTED.
THEY'VE REACHED OUT TO US ON MITIGATION AREAS, THESE HAY BALE DUNE AREAS, AND SO I
[02:15:05]
SAID QUIT COORDINATION WITH THEM AND WHAT'S WORKING OUT HERE.THEN THE RIVIERA CONDO SHOULD BE STARTING NEXT WEEK.
KYLE CLARK: THAT PRODUCT SHOULD BE.
BRIAN MAXWELL: OR THEY JUST STILL.
MARIE ROBB: ARE ALSO HAY BALES ON THE BEACH, I THINK IN FRONT OF BEACH TOWNS AND IN FRONT OF PALISADE BONDS.
ANGELA SUNLEY: PALISADE IS ACTUALLY A LARGE SCALE CLAY CORE.
THEY USE THE MATERIAL THAT THEY PULLED OUT FOR THE PILINGS, FOR THE CLAY CORE.
DAVID COLLINS: BUT UNFORTUNATELY, THAT'S AN ACCRETING BEACH.
SO THERE'S NOT NEARLY SO MUCH.
ANGELA SUNLEY: THIS IS DRIVING THIS.
BRIAN MAXWELL: THAT DUNE SYSTEM DOESN'T GET CHALLENGED.
BRIAN MAXWELL: THE PROBLEM IS WITH THE HAY BALES THERE, WE JUST DON'T ALLOW COWS ON THAT SECTION.
BRIAN MAXWELL: HE'S ALWAYS LOOKING AT [OVERLAPPING] .
DAVID FINKLEA: I WANTED TO ECHO COUNCIL MEMBER COLIN'S COMMENT ABOUT THE IDEA.
THIS IS A VERY GOOD IDEA ABOUT HAVING A COMPREHENSIVE PLAN FOR PLACEMENT IT'S ACTUALLY OUT ON THE WEST END AND WHERE WE HAVE RECEDING BEACHES.
I THINK A GOOD STUDY NEEDS TO BE PERFORMED REGARDING WHERE YOU PLACE THEM.
WHAT'S THE EXPECTED LEVEL [NOISE] WITH THE RECEDING BEACH, AND SO WHAT DOES THAT INSTALLATION COST LOOK LIKE? WHAT DOES NOURISHMENT COST LOOK LIKE? WHAT DOES RE-NOURISHMENT COST LOOK LIKE, BECAUSE YOU KNOW YOU'RE GOING TO HAVE TO DO IT.
I THINK THAT'S A VERY GOOD RECOMMENDATION.
BRIAN MAXWELL: I WANT TO THANK THE GLO FOR BEING HERE.
THIS HAS BEEN VERY EDUCATIONAL FOR ME.
I APPRECIATE THE TIME AND THE EFFORT.
IT'S BEEN VERY SUCCESSFUL AND I HOPE THE COMMUNITY LEARNED SOMETHING FROM THIS.
[NOISE] WE'RE GOING TO TAKE A FIVE-MINUTE BREAK.
FEMALE_2: THE PRESENTATION YOU'RE RECEIVING TODAY IS RELATED TO BOTH THE BUDGET AND THE CIP, AND IT IS CONSIDERED IN A DRAFT FORM AT THIS POINT, AND WE ARE
[3.D. Discussion Of The FY 2024 Budget And Capital Improvement Plan (M. Loftin - 2 Hours)]
MOVING VERY QUICKLY TOWARDS THE PROPOSED BUDGET THAT WE WILL BE FILING ON AUGUST 9TH AND WILL BE DISCUSSED ON AUGUST 10TH.THIS IS THE POINT WHERE WE'RE RECEIVING COMMENTS AND INCORPORATING THOSE LAST-MINUTE THINGS BEFORE WE PUT THE PROPOSED BUDGET FORWARD.
AS YOU'VE SEEN, THIS IS THE BUDGET SCHEDULED FOR THIS HEADING INTO THE NEXT FISCAL YEAR.
YOU'LL NOTICE I'VE VERY DELIBERATELY CROSSED OUT THE MEETING FROM MONDAY, THE 31ST.
COUNCIL WILL STILL BE MEETING WITH PART BOARD THAT DAY, SO PLEASE SHOW UP.
BUT MIKE AND I [LAUGHTER] I'LL BE PRESENTING BECAUSE LUCKILY AND VERY THANKFULLY CHERYL JOHNSON DID A FANTASTIC JOB GETTING US OUR TAX RATE CALCULATION VERY QUICKLY, VERY EARLY.
HER OFFICE DID A GREAT JOB, AND SO WE'RE ABLE TO PRESENT EVERYTHING TO YOU TODAY AND WE DO NOT HAVE TO HAVE AN ADDITIONAL PRESENTATION ON MONDAY.
[NOISE] THERE ARE SOME MAJOR ASSUMPTIONS THAT IMPACT THE REVENUES FOR THE BUDGET THAT YOU'VE RECEIVED, AND WE'VE TALKED ABOUT SOME OF THESE ALREADY.
AS I MENTIONED, WE RECEIVED THE CERTIFIED VALUES ON MONDAY.
THE FINAL TAX RATES WERE CALCULATED BY TUESDAY MORNING, SO IT WAS INCREDIBLY SPEEDY.
THE DRAFT BUDGET HAS BEEN UPDATED TO REFLECT OPTIONS THAT CITY COUNCIL HAS BASED ON THE TAX RATE AND THE CALCULATIONS ASSOCIATED WITH THOSE.
AS WE'VE DISCUSSED, SALES TAX AND HOTEL OCCUPANCY TAX ARE LIKELY TO PLATEAU IN THE COMING YEAR OVER THE LAST TWO YEARS OF EXPANSION.
AS I'M SURE YOU'VE BEEN PAYING ATTENTION AND WATCHING, THERE'S AN OVERALL ECONOMIC SLOWDOWN, MOST LIKELY, HOWEVER, WE ARE THINKING THAT MAYBE A RECESSION WILL BE AVOIDED AND THERE'LL BE A SOFT LANDING.
AND SO WE MAY NOT SEE QUITE THE RECESSIONARY EXPERIENCE THAT WAS ORIGINALLY PROJECTED.
HOPEFULLY, THIS LAST INCREASE FROM THE FED RELIEVES A LOT OF THE INFLATIONARY PRESSURE.
I MEAN, I CAN UNDERSTAND MORE ON THE SALES TAX, BUT WHY ARE YOU FEELING LIKE OUR TAX WILL PEAK? BECAUSE I SEE THAT AS CONTINUING TO EXPAND.
FEMALE_2: THE MAJOR EXPANSION THAT GALVESTON HAS EXPERIENCED IN HOW TAX OVER THE LAST TWO YEARS IS VERY MUCH RELATED TO THE SHORT-TERM RENTAL PROGRAM AND THOSE PROPERTIES THAT ARE NOW COLLECTING.
I DON'T WANT TO SAY THAT PART HAS PEAKED, BUT I THINK IT HAS REACHED A POINT WHERE
[02:20:05]
WE'RE GOING TO SEE IT FLATTEN OUT A LITTLE.IT'S NOT GOING TO CONTINUE INCREASING AT THE RATE IT HAS OVER THE LAST TWO YEARS.
IT'S POSSIBLE THAT IF THERE'S NO RECESSION, WE SEE MORE INCREASES, BUT IT IS ALSO POSSIBLE THAT IT STARTS TO LEVEL OUT.
KYLE CLARK: WELL, OUR SHORT-TERM RENTAL IS DRIVEN BY PROPERTY INVESTMENT.
AND WHAT WE'RE SEEING NOW IS WE'RE SEEING LESS NEW PROPERTIES COMING ONLINE AS STRS AND WE'RE SEEING MORE CHURNING OF THE EXISTING SHORT-TERM RENTALS WITHIN SALES AND A LOT OF THOSE WERE EVEN DROPPING OUT OF THE SHORT-TERM RENTAL MARKET.
WHILE I THINK VISITORSHIP WILL CONTINUE TO RISE IN GALVESTON, I THINK THAT THE SHORT-TERM RENTALS WILL CONTINUE TO HAVE HIGHER OCCUPANCY RATES.
I DON'T BELIEVE YOU'RE GOING TO CONTINUE TO SEE THE GROWTH IN THE NUMBER OF SHORT-TERM RENTALS.
THAT'S WHY WE ARE PREDICTING MORE OF A PLATEAU RATHER THAN A DROP.
MARIE ROBB: WE CAN ALWAYS SAY THIS EVERY YEAR AND IT STILL MANAGES TO INCREASE.
ANGELA SUNLEY: WELL, HOPEFULLY, THAT WILL HAPPEN.
KYLE CLARK: HOPEFULLY, THAT WILL BE THE CASE.
FEMALE_2: AS WE DISCUSSED AT THE LAST MEETING, THERE ARE SEVERAL NON-PROPERTY TAX REVENUE SOURCES THAT WERE IN THIS BUDGET, THE FY2013 BUDGET FOR THE FIRST TIME, AND THEY ARE JUST NOW STARTING THEIR COLLECTION POINT, AND SO WE'RE PROJECTING THEM CONSERVATIVELY.
ALTHOUGH YOU WILL SEE THAT WE HAVE MADE UPDATES TO THE LONG-TERM PARKING REVENUE BASED ON THE TWO-MONTH TREND THAT WE HAVE NOW.
KYLE CLARK: THE BIG LONG TWO MONTH TREND.
FEMALE_2: THE PROPERTY TAX CERTIFICATION AND THAT CERTIFIED TAXABLE VALUE WAS CERTIFIED AT ABOUT 95 PERCENT OF ALL THE PROPERTIES, WHICH IS A PRETTY GOOD NUMBER COMING FROM HARRIS COUNTY.
THAT'S AMAZING, AND SO WE ARE [OVERLAPPING] 02:21:46] COUNTY.
KYLE CLARK: NO, BUT SHE SAID COMING FROM HARRIS COUNTY.
FEMALE_2: MY EXPERIENCE IN HARRIS COUNTY WAS VERY DIFFERENT THAN THIS, SO THE 95 PERCENT IS FANTASTIC.
THE GALVESTON COUNTY TAX ASSESSOR, AS I MENTIONED, WAS INCREDIBLY HELPFUL AND SHE HAS ALREADY COMPLETED THE TRUTH IN TAXATION CALCULATION FOR US.
THE TAXABLE VALUE INCREASE YEAR OVER YEAR IS ABOUT 17.3 PERCENT.
THIS INCLUDES ABOUT 3.1 PERCENT NEW CONSTRUCTION.
TAXABLE VALUE COMPARATIVELY, RIGHT NOW WE'RE LOOKING AT ABOUT 10.6 BILLION IN FISCAL YEAR '24 IN COMPARISON TO THE 9 BILLION IN FISCAL YEAR '23, THE CURRENT YEAR.
JUST TO GIVE YOU SOME INFORMATION, AT THE HIGHEST POINT OF THE PROTESTS, ABOUT ONE-THIRD WAS BEING COUNTED AND TWO-THIRDS WERE IN PROTESTS.
ABOUT 4.8 BILLION WAS CONSIDERED TAXABLE VALUE THAT WAS CERTIFIED, AND 8.2 BILLION WAS BEING PROTESTED.
SINCE THAT POINT, AND THAT WAS PROBABLY LATE MAY, 7.6 BILLION OF THAT HAS BEEN RESOLVED, LEAVING ABOUT 626 MILLION ON VALUE.
THE OVERALL PROTESTS LOSS AT THIS POINT IS ABOUT 9.06 PERCENT, AND SO OF THAT ORIGINAL 13.2 BILLION, THAT'S ABOUT $1.2 BILLION WORTH OF LOSS.
DAVID COLLINS: I HAVE A QUESTION REAL QUICK.
DAVID COLLINS: THE 17.3 AND THE 3.1 NEW CONSTRUCTION.
I MEAN, THERE'S 14 PERCENT OF INCREASED VALUE JUST THROUGH INCREASED APPRAISED VALUE.
DAVID COLLINS: 3.1 ONE NEW CONSTRUCTION WE'VE ACTUALLY ADDED TO THE TAX RULE, AND THEN [OVERLAPPING] THE TAXABLE VALUE, BUT YOU DON'T NECESSARILY GET TO CAPTURE THAT IN REVENUE BECAUSE OF THE OTHER CAPS.
DAVID COLLINS: BUT 14 PERCENT IS JUST OUR APPRAISED VALUE.
FEMALE_2: ESTIMATED PROPERTY TAX REVENUE BASED ON THE CERTIFIED TRUTH AND TAXATION AND CALCULATION.
THIS IS HOW ALL OF THE CALCULATIONS WE'VE DONE THIS PAST WEEK COME INTO PLAY AS WE FIGURE OUT HOW TO MOVE FORWARD WITH THE BUDGET.
IN THE BLUE COLUMNS ON THE LEFT, YOU'RE GOING TO SEE HISTORICAL, SO FY21, FY22, AND FY23.
THE GRAY COLUMNS REPRESENT YOUR LEGALLY CALCULATED BENCHMARKS AS A PART OF TRUTH IN TAXATION.
YOU SEE THE FY24 NO NEW REVENUE RATE AND THEN ON THE FAR RIGHT YOU SEE THE FY24 VOTER APPROVAL RATE AT 3.5 PERCENT AND AT 8 PERCENT.
THE REASON BOTH OF THESE ARE BEING PRESENTED THIS YEAR IS THAT THE LEGAL CALCULATION IS ACTUALLY AT THE 8 PERCENT.
HOWEVER, WE ASSUME THAT COUNTY WANT TO SEE THAT 3.5 PERCENT BENCHMARK AS WELL.
BASED ON THE DRAFT BUDGET WE HAVE AND WE'RE GOING TO GET INTO SOME OF THAT DETAIL, WE ARE PROPOSING A RATE AROUND 0.4089, WHICH IS HIGHER THAN THE NO NEW REVENUE, LOWER THAN THE VOTER APPROVAL RATE AT 3.5 PERCENT.
THE AMOUNT INCREASES YOU'RE SEEING IS IN RELATION TO THE FY23 TAX RATE.
THE TAX RATE WE'VE HAD ALL YEAR IS A 0.4445 AND IN RELATION TO THAT, THE
[02:25:05]
DECREASE IS ABOUT THREE AND A HALF CENTS, SO 0.0357, WHICH IS ABOUT AN 8 PERCENT DECREASE IN THE TAX RATE.THE REVENUE INCREASE ASSOCIATED WITH THAT IS ABOUT $4.8 MILLION OR 11.2 PERCENT INCREASE.
YOU'LL SEE THIS IS BEING SPLIT OUT, GENERAL FUND, DEBT SERVICE FUND, AND LIBRARY FUND.
AS YOU KNOW, THE GENERAL FUND AND LIBRARY FUND PORTION COMBINE TO MAKE THE TOTAL MAINTENANCE AND OPERATIONS RATE.
THE DEBT SERVICE RATE IS SEPARATE BUT YOU'LL ALSO, AS YOU KNOW, THE LIBRARY FUND IS HELD STEADY AT THAT FIVE CENTS.
THE DEBT SERVICE RATE YOU'LL NOTICE IS DROPPING OFF IN THIS NEXT YEAR DUE TO SOME DEBT RETIRING IN FY23 AND SO YOU'LL SEE THE GENERAL FUND MAINTENANCE AND OPERATION RATE IS DROPPING OFF.
THE PORTION IMPACTING REVENUE TO THE GENERAL FUND IS DROPPING OFF FROM ABOUT 0.3420 TO ABOUT 3158.
WITH REVENUE, THE ASSOCIATED REVENUE CHANGE IN THE GENERAL FUND IS 33.1 MILLION VERSUS A PROPOSED THAT GREEN NUMBER IS AT 36.9 MILLION.
DO YOU HAVE ANY QUESTIONS BEFORE I MOVE ON? BRIAN MAXWELL: WELL, I THINK YOU'RE GOING TO GET IT.
THIS 0.4089 DOES NOT INCLUDE A LOT OF THINGS THAT THIS COUNCIL NEEDS TO CONSIDER.
FEMALE_2: WE'RE GOING TO TALK ABOUT A LITTLE BIT OF THAT.
WE'LL SHOW YOU WHAT WE HAVE UNDER CONSIDERATION IN THERE AND THIS IS THE POINT WHERE WE'RE GOING TO RECEIVE THAT FEEDBACK AND GET IT INTO THAT PROPOSED BUDGET THAT YOU ALL WILL RECEIVE IN THE BEGINNING OF AUGUST, WHICH IS AROUND THE CORNER.
THIS IS JUST A GRAPHICAL REPRESENTATION OF THAT PROPERTY TAX RATE AND HOW IT'S CHANGED OVER THE LAST THREE YEARS.
THERE HAS BEEN A DECREASE EACH YEAR.
AS YOU MENTIONED, THIS IS DRIVEN BY THE VALUE INCREASES, SO WHEN ONE GOES UP, THE OTHER COMES DOWN.
THERE IS THE THREE GRAYED-OUT COLUMNS, OR YOUR NO NEW REVENUE AND YOUR VOTER APPROVAL RATE AT THREE-AND-A-HALF AND 8 PERCENT.
THEN RIGHT THERE IN THE MIDDLE BETWEEN THOSE GRADE COLUMNS IS THE RATE THAT WE ARE PROPOSING IN THE BUDGET INFORMATION YOU ALL ARE ABOUT TO RECEIVE.
MARIE ROBB: MAY I ASK THIS DEFINITELY? THIS IS A QUESTION ACTUALLY ABOUT THE PREVIOUS VIDEO.
WITH THE THINGS THAT WERE PASSED IN THIS LAST LEGISLATION THAT'S BEEN FACTORED INTO THE TAX RATE THAT WE'VE RECEIVED FROM THE COUNTY? FEMALE_2: YES.
ALL LEGISLATIVE CHANGES THAT WERE MADE ARE INCORPORATED IN THE CONTROLLER OR OFFICIAL TRUTH AND TAXATION WORKSHEETS.
MOST OF THOSE CHANGES RELATE TO SCHOOL DISTRICTS.
MARIE ROBB: ALL THE HOMESTEAD AND THINGS LIKE THAT.
FEMALE_2: OUR CALCULATION WAS LESS IMPACTED THAN ALL THE SCHOOL DISTRICT CALCULATIONS, BUT EVERYTHING HAS BEEN INCORPORATED.
YOU'LL SEE THAT WITH THE UNUSED INCREMENTS, THEY CLARIFY THAT A LOT, AND THAT IS INCLUDED IN OUR PHOTO APPROVAL RATE AS WELL.
BRIAN MAXWELL: ARE YOU GOING TO COVER THE INCREASED EXEMPTION AND ITS IMPACT? FEMALE_2: THE INCREASED EXEMPTION BY THE STATE LEGISLATURE IMPACTS ONLY THE SCHOOL DISTRICTS, IT DOES NOT IMPACT CITIES.
DAVID COLLINS: FORTY PERCENT, 40,000, 100,000 DOES IT NOT APPLY TO EVERYONE? BRIAN MAXWELL: JUST SCHOOL DISTRICTS.
FEMALE_2: JUST SCHOOL DISTRICTS.
MARIE ROBB: I THOUGHT THE HOMESTEAD EXEMPTION [OVERLAPPING] MAXWELL: NO, THE SCHOOL DISTRICTS.
DAVID COLLINS: BOY, JUST SURE ABOUT THAT.
BRIAN MAXWELL: LAST YEAR, YOU MIGHT RECALL AS YOU INCREASED THE MINIMUM FOR THE CITY TAX, THE MINIMUM EXEMPTION IS NOW 60,000.
YOU'VE GOT A YEAR AHEAD OF THE LEGISLATURE GIVEN TAX RELIEF WITH THAT PARTICULAR MEASURE.
IT IS GOING TO STAY 60 FOR THIS COMING YEAR.
THAT WAS APPROVED AT THE LAST COUNCIL MEETING, I BELIEVE.
JUST TO NOTE THAT RIGHT NOW, A PENNY ON THE TAX RATE BRINGS ABOUT 1.17 MILLION TO THE GENERAL FUND.
THAT'S NOT THE TOTAL AMOUNT OF BRINGS, BUT IMPACTING THE GENERAL FUND IT'S ABOUT 1.17.
BRIAN MAXWELL: JUST FACTOR IN THE LIBRARY AND ALL THE OTHER STUFF.
FEMALE_2: THERE ARE SOME GENERAL FUND EXPENDITURE ASSUMPTIONS THAT WE WANT TO MAKE YOU AWARE OF.
FIRST OF ALL, WHEN WE GET TO THE NUMBERS PORTION, THE DRAFT COLUMN, WHICH IS WHAT WAS RECEIVED BY COUNCIL A MONTH AGO IN JUNE AND WHAT WE'RE COMPARING TO FOR OUR PROPOSED COLUMN DOES NOT INCLUDE ANY CHANGES FOR CIVILIAN, POLICE, OR FIRE PERSONNEL.
THE COLLECTIVE BARGAINING IS STILL IN PROGRESS.
THERE ARE SOME TENTATIVE RECOMMENDATIONS THAT ARE BEING MADE RELATED TO THE INFORMATION WE HAVE ABOUT WHERE COLLECTIVE BARGAINING IS IN THE PROCESS.
HOWEVER, THE ASSOCIATIONS HAVE STILL NOT APPROVED WHAT HAS BEEN NEGOTIATED AND ONLY AFTER THE ASSOCIATIONS HAVE APPROVED WILL COUNCIL RECEIVE THAT.
[02:30:02]
WE'RE STILL A LITTLE BIT DOWN THE LINE FROM HAVING THE EXACT FINAL NUMBERS.BRIAN MAXWELL: I SHOULD HAVE POLICE FOR YOU GUYS, POLICE IS DONE BUT IT HAS NOT BEEN OFFICIALLY APPROVED SO I CAN'T BRING IT UP, BUT I SUSPECT WE WILL BRING THAT TO YOU GUYS AT YOUR NEXT MEETING.
NOT JULY 31ST, THE AUGUST 10TH MEETING.
BRIAN MAXWELL: AND YOU'LL BRING YOUR COLUMN FOR THE CIVILIAN EMPLOYEES.
[OVERLAPPING] SIGNIFICANT INCREASE IN THIS GENERAL FUND BUDGET.
THERE IS A NEED FOR IMPROVED NETWORK SECURITY.
AS YOU ARE PROBABLY AWARE IN THE PRIVATE SECTOR AS WELL RIGHT NOW, ALL THE RANSOMWARE AND HACKING AND PHISHING SCHEMES ARE JUST REALLY IMPACTING BUSINESS EVERYWHERE AND SO WE NEED TO ENSURE THAT THE CITY'S INFRASTRUCTURE AS FAR AS TECHNOLOGY IS CONCERNED, IS COMPLETELY OR IS SECURE AS POSSIBLE.
THERE'S ALSO A LOT OF SUPPORT GOING TO VARIOUS DEPARTMENTS THAT IS INCREASED.
HEALTH INSURANCE COSTS ARE INCREASING BY 10.2 PERCENT OVER LAST YEAR.
THE CITY'S NEW ELECTRICITY CONTRACT IS EFFECTIVE AS OF JANUARY AND THERE IS ABOUT A 19.5 PERCENT INCREASE RELATED TO THAT.
THESE ARE THE BIG-TICKET ITEMS THAT ARE INCLUDED IN THE DRAFT BUDGET BEFORE ANY PROPERTY TAX RATE CONSIDERATIONS.
THESE ARE INCREASES THAT HAVE BEEN ABSORBED AND ARE PROJECTED AS NECESSARY FOR THE GENERAL FUND.
THERE'S ANNUALIZED PERSONNEL COSTS AROUND $728,000.
THIS IS IN LARGE PART RELATED TO POSITION CHANGES OVER THIS FISCAL YEAR THAT WHEN THEY ARE ANNUALIZED AND BUDGETED FOR, IT INCREASES THE OVERALL COST.
BRIAN MAXWELL: BASICALLY, YOU RAN PRETTY HIGH VACANCY RATES IN SOME OF YOUR AREAS LAST YEAR, ESPECIALLY POLICE.
WE THINK WE'RE GOING TO OVERCOME THAT THIS YEAR WITH OUR CONTRACT CHANGES THAT WE'RE BRINGING YOU.
WE'RE ANTICIPATING THAT BEING A FULL EXPENDITURE THIS YEAR.
EMS, THE CONTRACT IS, I BELIEVE ON THE CONSENT AGENDA FOR LATER ON THIS EVENING.
THERE'S A 7 PERCENT INCREASE THIS YEAR IN THE CONTRIBUTION TO OUR EMS SYSTEM, FACILITIES INCREASES INCLUDE THE LIABILITY INSURANCE INCREASES AS WELL AS FACILITY MAINTENANCE TO ABOUT $122,000.
GARAGE INCREASES INCLUDE FUEL SUPPLIES AND OTHER PARTS.
BRIAN MAXWELL: WHEN WE CAN GET THEM.
FEMALE_2: WHEN WE CAN GET THEM.
HEALTH INSURANCE, AS I MENTIONED ON THE PREVIOUS SLIDE, IS AT 10.2 PERCENT INCREASE SYSTEM-WIDE, THE IMPACT ON THE GENERAL FUND IS ABOUT $618,000.
TECHNOLOGY, AS I SAID, IS ONE OF OUR BIGGEST IMPACTS THIS YEAR.
THIS INCLUDES NETWORK SECURITY, OUR REPLACEMENT SCHEDULE.
SOFTWARE IS ONE OF THE CHANGES, TECHNOLOGY-WISE, INDUSTRY-WIDE IS SOFTWARE AS A SERVICE SUBSCRIPTIONS, ALMOST EVERYTHING HAS GONE TO THE CLOUD AND SO THOSE SUBSCRIPTIONS, AS YOU'RE FAMILIAR, ARE ONGOING AND THAT HAS AN IMPACT.
THEN, THERE IS INCREASED SUPPORT FOR PUBLIC SAFETY, WI-FI, EVERY REMOTE LOCATION, EVERY VEHICLE WHERE YOU HAVE A COMPUTER TALKING TO THE INTERNET SO THAT WE HAVE MORE DATA, REQUIRES A WI-FI OR REMOTE SETUP, IT'S CALLED A CRADLE POINT AND THERE'S A LOT OF SUPPORT RELATED TO THAT.
BRIAN MAXWELL: ACTUALLY, THAT'S WHAT'S SOMEWHAT SLOWING DOWN OUR VEHICLES GETTING IMPLEMENTED AT THESE CRADLE POINTS.
THOSE ARE ROLLING COMPUTER OFFICES NOW AND THEY'RE VERY EXPENSIVE.
BRIAN MAXWELL: GENERALLY, WHAT IS THE THREE-AND-A-HALF PERCENT INCREASE OVER LAST YEAR'S? FEMALE_2: HOLD ON, RELATED TO THE TAX RATE? BRIAN MAXWELL: WELL, NOT SO MUCH TAX RATE.
JUST THE DOLLAR AMOUNT THAT WE CAN CREATE.
BRIAN MAXWELL: IF YOU GO FROM NO NEW REVENUE TO THREE-AND-A-HALF PERCENT, HOW MUCH MONEY DOES IT LOOK? [OVERLAPPING] IT'S GOING TO INCREASE YOUR REVENUE, PROPERTY TAX TO ABOUT $3.2 MILLION.
BRIAN MAXWELL: IF YOU WENT ALL THE WAY UP.
FEMALE_2: IF YOU WENT ALL THE WAY TO THE 3.5 PERCENT VOTER APPROVAL RATE.
DAVID COLLINS: THIS NUMBER WE'RE LOOKING AT DOES NOT INCLUDE PUBLIC SAFETY.
BRIAN MAXWELL: WE'LL GET THERE.
WE DO NOT HAVE THOSE NUMBERS IN THERE YET.
DAVID COLLINS: JUST A FLAT 3.5 PERCENT IS GOING TO BARELY COVER WHAT YOU'VE GOT ON THE SCREEN.
BRIAN MAXWELL: WE'LL GET THERE.
ONE OTHER THING I WANT TO MENTION IS THE INFRASTRUCTURE AND DEBT SERVICE FUND IS 8 PERCENT BASED ON YOUR REVENUE.
EVERY TIME WE INCREASE REVENUE, THAT TRANSFER TO THE INFRASTRUCTURE AND DEBT SERVICE FUND INCREASES AS WELL.
WHAT YOU HAVE HERE IS THE INCREASE RELATED TO THE DRAFT BUDGET, AND THEN WITH EACH STEP IN THE TAX RATE, WE'RE INCLUDING THE ADDITIONAL TRANSFER TO THE INFRASTRUCTURE AND DEBT SERVICE FUND.
THERE ARE NO NEW POSITIONS IN THIS BUDGET IN THE GENERAL FUND, ALMOST ALL NEW POSITIONS THAT WE HAVE, OUR WATER SEWER RELATED, THERE ARE NONE IN THE GENERAL
[02:35:02]
FUND, MANY OF THE INCREASES YOU'RE SEEING ARE RELATED TO INFLATION AND NOT SO MUCH INTO THE FUTURE, BUT WE'RE PLAYING CATCH UP AT THIS POINT.ALL OF THE NEW REVENUES THAT WE'VE TALKED ABOUT ARE MOSTLY OFFSETTING THESE MAJOR INCREASES.
BEFORE I MOVE ON TO THE FUN PART, [LAUGHTER] MUCH ANTICIPATED ANY QUESTIONS ON THIS SLIDE? BRIAN MAXWELL: HERE YOU GO.
I'VE PUT NUMBERS ON THOSE LINES.
MIKE SAID IT WAS REALLY GOOD FOR US SO WE CAN DRILL DOWN AND TALK ABOUT WHAT EACH LINE IS, BUT YOU SEE THE FY2013 ESTIMATE COLUMN THAT WE'RE COMPARING TWO, THAT'S HOW WE PROJECT TO END THIS FISCAL YEAR.
THE DRAFT NUMBER IS VERY CLOSE TO WHAT WAS PRESENTED IN JUNE.
YOU'LL SEE THAT ISN'T RELATED TO A TAX RATE, IT WAS JUST PROJECTIONS.
IF YOU GO DOWN TO THE BOTTOM THERE, LINE 12 AND 13, BASED ON THAT DRAFT, THE ENDING FUND BALANCE WAS JUST SLIGHTLY LOWER THAN 120 DAY MARK.
THEN YOU HAVE FOUR ADDITIONAL COLUMNS.
YOUR NO NEW REVENUE, YOUR PROPOSED, YOUR 3.5, AND YOUR 8 PERCENT.
YOU'LL SEE THE TOTAL PROPERTY TAX REVENUE ASSOCIATED WITH EACH OF THOSE POSITIONS IN LINE 3.
WE'RE PROPOSING, AS I MENTIONED ON A PREVIOUS SLIDE, ABOUT 36.9 MILLION IN PROPERTY TAX REVENUE, WITH THAT 0.408850 TAX RATE.
THE INCREASE IN PROPERTY TAX REVENUE FROM THAT DRAFT NUMBER IS A 2.9 MILLION, AND WHAT WE'VE DONE IS WE'VE LOOKED AT THE TWO MONTHS TREND ON LONG-TERM PARKING, AND WE'VE PUSHED THAT OUT FOR A YEAR AND WE'RE ADDING $522,000 TO THAT REVENUE LINE.
THAT TAKES IT TO ABOUT 1.3 MILLION IN REVENUE.
MARIE ROBB: SINCE RIGHT NOW THE BOARD BEING IN COMPLIANCE AND ONE OTHER, SO [OVERLAPPING] WE'LL WE RECEIVE THE MONEY MOMENTS AFTERWARDS.
BRIAN MAXWELL: THE HOUSE AND THEY WERE HOLDING IT UNTIL WE PASSED THAT.
BRIAN MAXWELL: WE'RE GETTING GOOD PARTICIPATION NOW.
MARIE ROBB: BUT I MEAN, FROM THE OTHER ENTITIES.
FEMALE_2: THEY'RE AVERAGING ABOUT 30, 35,000 A MONTH WHERE THE PORT IS CONTRIBUTING ABOUT 80 TO 90,000 A MONTH.
MARIE ROBB: EVERYONE IS PARTICIPATING NOW.
FEMALE_2: THERE ARE STILL TWO KNOWN GROUPS THAT HAVE NOT SUBMITTED ANYTHING THEY HAVE REGISTERED, BUT WE HAVE NOT RECEIVED ANY REVENUE FROM THEM AND WE BELIEVE THERE IS REVENUE ASSOCIATED THERE.
BRIAN MAXWELL: WE REALLY NEED TO BE PROACTIVE.
MARIE ROBB: BECAUSE I THINK THAT NUMBER IS CONSERVATIVE.
BRIAN MAXWELL: WHAT YOU'RE JUST SAYING DOESN'T JIVE WITH THIS 522.
WE'RE TALKING ABOUT $1 MILLION.
FEMALE_2: THE 522 IS IN ADDITION TO WHAT WAS ALREADY IN THE BUDGET.
WE HAD 785 BUDGETED [OVERLAPPING] UNDER THAT DRAFT AND WE'RE INCREASING IT BY 520.
BRIAN MAXWELL: THAT'S AN ADDITIONAL PLUG THAT WE PUT IN BASED ON OUR BIG TWO-MONTHS OF TRAINING.
FEMALE_2: THE TOTAL IN LONG-TERM PARKING REVENUE IS NOW GOING TO BE AROUND 1.3 MILLION.
BRIAN MAXWELL: IT'S GOING TO BE OVER ONE ROUND 1.21 POINT.
BRIAN MAXWELL: WHICH IS EXACTLY WHAT WE ESTIMATED WHEN WE DID THE ORDINANCE.
FEMALE_2: UNDER THE PROPOSED RATE, THE TOTAL REVENUE WOULD COME TO ABOUT 78.9 MILLION AND THE TOTAL EXPENDITURES, INCLUDING THE INCREASES TO THE INFRASTRUCTURE ON DEBT SERVICE FUND TRANSFER WOULD BE ABOUT 75.5 MILLION.
NOW, YOU'LL SEE LINE NUMBER NINE IS THE RECOMMENDATIONS FOR ADDITIONAL EXPENSES RELATED TO CIVILIAN, POLICE AND FIRE.
IT'S LUMPED TOGETHER THERE FOR THE PURPOSES OF NEGOTIATION, ONGOING, BUT WE'RE ESTIMATING- [OVERLAPPING] MAJORITY OF THAT IS NOT CIVILIAN.
IS ABOUT 2.3 MILLION TOTAL, AND THE TOTAL UPDATED EXPENDITURES COUNCIL CHOOSES TO MOVE FORWARD WITH ALL OF THAT WILL BE ABOUT $77.8 MILLION.
THE PROPOSED RATE WAS SELECTED BECAUSE IT ALLOWS YOUR ENDING FUND BALANCE TO BE JUST SLIGHTLY OVER THAT 120 DAY FUND BALANCE REQUIREMENT.
BRIAN MAXWELL: ARE YOU TELLING ME THAT THAT 2.304 INCLUDES CIVILIAN COLA? FEMALE_2: YES.
2.304 INCLUDE CIVILIAN, POLICE, AND FIRE.
BRIAN MAXWELL: BUT I'M TELLING YOU THE CIVILIAN IS THE SMALLEST PART OF THAT.
BUT WE ASK WHAT THE CIVILIAN COLA IS RIGHT THERE.
THAT'S EQUAL TO ABOUT TWO PENNIES IN THE TAX RATE.
FEMALE_2: THE $2.3 MILLION? YES.
IT IS EQUAL TO ABOUT TWO PENNIES.
BRIAN MAXWELL: BUT WE BASICALLY ABSORBED ALMOST A PENNY OF IT.
FEMALE_2: THIS IS WHERE I HAVE TO GIVE AN IMPORTANT REMINDER AS COUNCIL CONSIDERS HOW WE'RE PROPOSING THIS BUDGET, IT ONLY TAKES FOUR VOTES
[02:40:01]
LEGALLY TO PASS A BUDGET, BUT IT TAKES FIVE BOWS TO PASS A TAX RATE.FROM OUR PERSPECTIVE, WE HAVE TO HAVE THE BUDGET APPROVED FIRST.
LEGALLY, THE STATE REQUIRES THAT.
IT WOULD BE WONDERFUL IF WE COULD GET BOTH APPROVED WITH AT LEAST FIVE VOTES SO THAT THERE'S NO ISSUES LIKE THERE WERE LAST YEAR WHERE WE HAD AN APPROVED BUDGET, BUT IT WAS A LITTLE HARDER TO GET TO THE TAX RATE.
THAT'S JUST A REMINDER CONVERSATION.
BRIAN MAXWELL: JUST A COMMENT ON THAT, WE HAD DOWN AS YOU KNOW, COUNSEL, TO REVIEW THE BUDGET AND COULD DISCUSS THIS FURTHER ON JULY 31ST, THAT'S BEEN REMOVED FROM THE AGENDA AND WE ONLY ARE DOING PART BOARD, THEN WE'LL BRING THIS BACK FOR THE BUDGET AND THE TAX RATE ON AUGUST.
BRIAN MAXWELL: AGAIN, THE REASON WE PULLED IT FROM THE 31ST IS BECAUSE WE HAVE THIS FREE TODAY.
BRIAN MAXWELL: WE WERE WORRIED WE WOULD NOT HAVE THIS FOR YOU TODAY.
HISTORICALLY, WE WOULD NOT HAVE BUT SHERYL DID TH FEMALE_2: SO MOVING ON TO PAGE 10.
MARIE ROBB: CAN I COME BACK TO THIS PAGE? FEMALE_2: SURE.
MARIE ROBB: WHEN YOU'RE LOOKING AT THE PROPOSED TAX RATE OR YOU'RE LOOKING AT THE NO NET REVENUE, SO WHAT'S THE DIFFERENTIAL AND THE TOTAL EXPENDITURES? FEMALE_2: BEFORE WE CONSIDER THE INCREASES FOR POLICE, FIRE, AND CIVILIAN, YOU'LL SEE THAT ON THE EXPENDITURES THERE'S A SLIGHT INCREASE FROM THE 75.3 MILLION TO 75.5.
THAT IS DRIVEN ENTIRELY BY THAT 8 PERCENT ON THE ADDITIONAL REVENUE, BECAUSE THE PROPOSED RATE BRINGS YOU TO 78.9 MILLION REVENUE, WHEREAS THE NO NEW REVENUE HIGH TO IS 77 MILLION, AND THAT DIFFERENCE, WE HAVE TO PUT THE 8 PERCENT INTO THE INFRASTRUCTURE AND DEBT SERVICE FUND.
THAT'S THE ONLY THING THAT DRIVES THAT INCREASE IN LINE SEVEN FROM NO NEW REVENUE TO THE VAR 8 PERCENT.
THAT EXPENDITURE INCREASE IS ONLY INFRASTRUCTURE AND DEBT SERVICE FUND.
FEMALE_2: NOW WE'RE GOING TO MOVE ON TO CAPITAL.
CAPITAL OUTLAYS SPECIFICALLY TIED TO GENERAL FUND ITEMS, AS IT HAS BEEN IN PAST YEARS, THERE'S $1 MILLION COMING FROM THE GENERAL FUND TO FUND FLEET ITEMS. THERE ARE ADDITIONAL FLEET ITEMS BEING FUNDED OUT OF THE COMBINED UTILITY TO THE TUNE OF $2.2 MILLION AND THE SANITATION FUND ABOUT 600,000 OR 6 MILLION.
THE INFRASTRUCTURE AND DEBT SERVICE FUND EXPENDITURES ARE AROUND $5.8 MILLION THIS YEAR.
THERE IS PROGRAMMED WITHIN THIS A REPLACEMENT TOWER TRUCK FOR THE FIRE DEPARTMENT AND THAT'S ABOUT $2 MILLION.
BRIAN MAXWELL: LET ME CATCH THAT.
WE WE'RE TAKING A SHOT ON THE $2 MILLION.
THE MAIN REASON IT'S IN HERE FOR TWO MILLION IS THAT GETS US OVER THE HUMP TO AT LEAST GET THE TRUCK BED AND ORDERED, BECAUSE THE LEAD TIME ON A TOWER TRUCK IS A LONG TIME.
BRIAN MAXWELL: IT'S A YEAR-AND-A-HALF IN THE BEST OF TIME.
BRIAN MAXWELL: IN THE BEST OF TIME.
WE ARE GETTING THE BALL ROLLING WITH THIS.
DO NOT BE SURPRISED IN SUBSEQUENT YEARS OF BUDGET THAT YOU MAY SEE SOME SLIGHT ADDITIONS TO THIS BECAUSE WE HAVE NOT BID THE TRUCK YET.
BUT THIS IS OUR BEST ESTIMATE BASED ON RECENT TRUCKS.
FEMALE_2: THERE IS $1.7 MILLION WORTH OF IN-HOUSE STREETS FROM MILL AND OVERLAY AND THE ASSOCIATED PROJECT MANAGEMENT AND ENGINEERING IS ANOTHER 0.9 MILLION.
THERE IS A TRANSFER TO THE TECHNOLOGY IMPROVEMENT FUND, THERE IS A CONSTRUCTION CONTINGENCY, THIS IS ANYTHING THAT MAY COME UP, ESPECIALLY PROBABLY RELATED TO STREETS, AND THEN THERE'S RELATED TO POLICE AND FIRE.
THERE IS DISPATCH IMPROVEMENTS AT THE DISPATCH.
BRIAN MAXWELL: I'LL TOUCH ON THAT FOR YOU GUYS.
THE COUNTY IS UPGRADING ALL OF THE FF&E IN THE DISPATCH CENTER.
WE SHARE A DISPATCH CENTER WITH THE COUNTY.
IT SAVES US MONEY AND IT BEHOOVES US TO MAKE THIS CHANGE AT THE SAME TIME, SO WE NEED TO GO AHEAD, AND BECAUSE WE'RE ATTACHED, WE HAVE TO UPGRADE WHEN THEY UPGRADE.
THIS IS MAINLY THEIR FURNITURE, CHAIRS, AND THINGS LIKE THAT.
WHEN WE OPENED THAT DISPATCH CENTER IN 2006, EVERYBODY HAD TWO SCREENS AND A KEYBOARD AND A RADIO.
WELL, NOW WE'RE OPERATING IN SOME OF THESE DISPATCHERS ARE OPERATING SIX OR EIGHT SCREENS AND IT'S GOTTEN MUCH MORE, SO WE HAVE TO UPGRADE THE FURNITURE AND THINGS UP THERE.
IT JUST MAKES SENSE FOR US TO DO THIS WHILE THE COUNTY IS DOING IT.
IS THE HALF $1 MILLION FOR CONSTRUCTION CONTINGENCY ONLY APPLICABLE TO THE EXPENDITURES RELATED TO 1.7 MILLION AND 0.9? BRIAN MAXWELL: NO.
BRIAN MAXWELL: THAT'S RELATED TO YOUR ENTIRE CIP? BRIAN MAXWELL: IT RELATES TO ANY OTHER BIG PROJECTS THAT WE HAVE.
WE TYPICALLY TRY TO LIMIT IT TO GENERAL FUND PROJECTS.
BRIAN MAXWELL: IT'S NOT JUST FOR THE STREETS MILL AND OVERLAY.
[02:45:02]
WE DON'T RUN INTO MANY MILL AND OVERLAY BIG CONTINGENCIES, BUT UNLESS WE GET IN THERE, AND WE HAVE UTILITY FAILURES THAT CAUSE INFRASTRUCTURE FAILURES OF THE STREET AND STUFF.I'LL USE JP AS AN EXAMPLE BECAUSE HE LOVES IT.
WE GOT INTO DRIFTWOOD AND WE FOUND THERE WAS NO BOTTOM TO THAT STREET, AND IT JUST IT JUST KEPT SINKING AND SINKING AND SINKING.
WE HAD TO COME IN WITH SOME NEW TECHNOLOGIES AND DIFFERENT STABILIZATION AND STUFF TO STABILIZE THE STREET.
THAT WOULD BE A GOOD EXAMPLE OF WHY WE CARRY THAT IN THERE.
FEMALE_2: [NOISE] MOVING ONTO WATER AND SEWER OVERVIEW, THERE ARE A COUPLE OF ITEMS THAT WE WANT TO BRING TO YOUR ATTENTION, ONE OF THEM IS THAT, THE WATER AND SEWER RATE ASSESSMENT WILL OCCUR AFTER THE NEW AMI METER INSTALLATION PROJECT IS COMPLETE.
THIS WILL BE AN ESSENTIAL THING THAT WE COMPLETE DURING THE FY24 FISCAL YEAR IN PREPARATION FOR FY25.
THE COST OF WATER THAT WE PURCHASED THROUGH GULF COAST WATER AUTHORITY IS PROJECTED TO BE $8.2 MILLION THIS YEAR AND THAT'S A 10.7 PERCENT INCREASE.
BRIAN MAXWELL: THAT IS JUST THE COST OF WATER, THAT IS NOT THE COST OF DISTRIBUTION.
THERE'S GOING TO BE ASSOCIATED COSTS WITH COST OF DISTRIBUTION THAT WE'RE GOING TO TALK TO YOU ABOUT DURING CAPITAL PROJECTS BUT THAT'S WHY THIS RATE ASSESSMENT IS SO IMPORTANT BUT I'LL TAKE THE BLAME FOR IT.
WE'RE NOT GOING TO DO A RATE ASSESSMENT BASED ON THE DATA WE HAVE NOW, I WANT TO DO A RATE ASSESSMENT BASED ON THE DATA WE GET FROM OUR AUTOMATED METERING SYSTEMS, WE ARE ALREADY CATCHING A LOT OF THINGS AND I CERTAINLY DON'T WANT TO OVERLY ASSESS SOMEBODY RATES BASED ON BAD INFORMATION.
WE'RE GOING TO HAVE GOOD, SOLID INFORMATION BEFORE WE DO A RATE ASSESSMENT.
BUT I WILL TELL YOU IT HAS TO HAPPEN IN 24 BECAUSE THE COST OF WATER IS GOING UP AT SUCH A PACE THAT AMI IS NOT GOING TO MAKE THAT UP, SO WE WILL HAVE AMI COMPLETE, BUT THERE WILL BE A RATE ASSESSMENT AND SOME RATE CHANGES BROUGHT TO YOU GUYS.
I'M CERTAIN IN 2024, IF ONLY BECAUSE THE COST OF WATER IS GOING BONKERS ON US.
FEMALE_2: ALSO MATERIAL AND SUPPLY COSTS INCLUDING GASOLINE ARE INCREASING.
THE TECHNOLOGY, GARAGE AND INSURANCE COSTS THAT IMPACT THE GENERAL FUND ALSO IMPACT THE OTHER FUNDS AS WELL, SO THOSE COSTS ARE INCLUDED.
BRIAN MAXWELL: WE'RE REALLY HOPING THAT THIS LAST INTEREST RATE BUMP STABILIZES SOME OF THESE INFLATIONARY COSTS BECAUSE WE KNOW IT'S HITTING EVERYBODY AT HOME, BUT IT HITS US TENFOLD BECAUSE WE HAVE SO MANY MORE VEHICLES, SO MANY MORE BUILDINGS, SO MANY MORE, IT JUST REALLY IS HITTING US UP.
BRIAN MAXWELL: FURTHER GROWTH.
WE'RE PRETTY MUCH STUCK WITH THE PRICES THAT HAVE BEEN PRODUCED SO FAR.
RARELY DOES INFLATION ROLL BACK.
FEMALE_2: THE REVENUE AND THE COMBINED UTILITY IS PROJECTED TO BE $5.7 MILLION OF OVER THE EXPENDITURES.
YOU'RE GOING TO SEE THAT IN THE FAR RIGHT-HAND COLUMN.
THE SECOND AND THIRD LINES DOWN, THE REVENUE IS PROJECTED AT 43 MILLION AND THE EXPENDITURES ARE PROJECTED AT 37.4 MILLION SO THERE IS ABOUT A $5.7 MILLION OVERAGE, WHICH IS WONDERFUL COMING OUT OF THE REVENUE.
BELOW THAT, YOU'RE GOING TO SEE THE DEBT SERVICE, WHICH IS $11 MILLION.
OF THAT $11 MILLION, THAT 5.7 IS BEING USED TO FUND PART OF THE DEBT SERVICE AND THEN THERE'S ANOTHER 5.4 MILLION DRAWING DOWN FUND BALANCE TO PAY THAT DEBT OBLIGATION, THE ENDING FUND BALANCE IS PROJECTED TO BE AT 12.2 MILLION, WHICH IS SLIGHTLY OVER THE 90 DAY FUND BALANCE.
[NOISE] REQUIRED TO HAVE, AND THAT'S WHY I'M TELLING YOU IN 24, WE'RE GOING TO HAVE TO LOOK AT A RATE ASSESSMENT.
BUT LET'S SEE WHAT WE GET CLEANED UP WITH AMI SO IT'S LESS OF AN IMPACT.
DAVID COLLINS: WHEN'S THE LAST TIME WE RAISE RATES? BRIAN MAXWELL: MIKE.
MICHAEL BOUVIER: 2019 IN ORDER TO APPROVE A RATE INCREASE FOR WATER.
BUT WATER ONLY THE LAST TIME SEWER RATES WERE CHANGED WAS 2015.
FEMALE_2: THE WATER AND SEWER CIP ON THE WATER SIDE, THERE'S 68.7 ALMOST POINT EIGHT MILLION IN WATER CIP, 33.8 MILLION OF THIS IS COMING FROM CITY BOND FUNDS THAT HAVE BEEN ISSUED PREVIOUSLY, AND WE'RE ANTICIPATING 35 MILLION COMING FROM FEDERAL GRANTS AND EARMARKS.
BELOW YOU WILL SEE THE HIGHLIGHTS OF WHAT IS BEING FUNDED THERE, THE LARGEST PROJECT IS A 30-INCH CAUSEWAY WATERLINE, AND THERE IS CONTINGENCY ASSOCIATED WITH THAT AS WELL I BELIEVE.
THERE IS THE WATER STORAGE TANK AT 59 STREET THAT PUMP STATION, 10 MILE ROAD ELEVATED STORAGE TANK REPLACEMENT, GULF COAST WATER AUTHORITY HAS TWO ITEMS ON HERE AND THESE ARE WHAT BRIAN WAS SPEAKING OF THAT IS RELATED TO DISTRIBUTION.
THERE ARE CAPITAL PROJECTS THAT ARE REQUIRED OF US FOR PARTICIPATION WITH THE GULF
[02:50:02]
COAST WATER AUTHORITY.THERE ARE NEW SOURCE CHINKS GOING IN AT THE AIRPORT AND 1 AUT AND 1 UTMB I BELIEVE.
THEN THERE IS THE I45, AND 61ST STREET FLY OVER IMPROVEMENTS ARE A PART OF THE TEXTILE PROJECT, BUT WE ARE ASSUMING WE WILL HAVE PART OF THAT AS WELL.
MARIE ROBB: MY THOUGHT ON THIS PROJECT BECAUSE I SIT ON THE TPC THAT THIS ACTUALLY MOVE FROM CITY HAVING RESPONSIBILITY TO THE CITY NOT HAVING ANY RESPONSIBILITY.
BRIAN MAXWELL: WE HAVE NOT RECEIVED ANY INFORMATION IN OUR INVOLVEMENT WILL BE ON THE FRONT END BECAUSE IT WILL INVOLVE SOME RIGHT-OF-WAY, I BELIEVE, BUT I WILL CHECK ON THAT.
IT'S ALL IN THE WATER SEWER FUND BECAUSE IT'S ALL UTILITY MOVEMENT, AND TYPICALLY TEXTILE DOESN'T PAY FOR OUR UTILITY MOVEMENT.
THEY PROBABLY PICK IT UP THE RUNAWAY BUT NOT UTILITY MOVE.
FEMALE_2: SO ON THE SEWER SIDE, THE CIP IS $41.6 MILLION, 33.1 FROM EXISTING CITY BOND FUNDS AND 8.6 MILLION FROM FEDERAL GRANTS.
YOU HAVE THE RECONSTRUCTION OF THE PIRATES BEACH, WASTEWATER TREATMENT PLAN FOR 23.4 MILLION, THAT'S IS A BIG PROJECT, ALSO SEWER ROADS, SANITARY SEWER REHAB.
THERE ARE SYSTEM-WIDE LIFT STATION, PUMP AND ELECTRICAL IMPROVEMENTS, THERE IS A MASTER PLAN FOR SANITARY SEWER FOR 1.5 MILLION, THERE ARE UPGRADES FOR WASTEWATER TREATMENT PLANTS AT TAMAR AND ONCE AGAIN, THIS IS THE SECOND HALF OF THAT SAME ISSUE.
THE I45, AND 61ST STREET FLY OVER SEWER IMPROVEMENTS RELATED TO THE TEXTILE PROJECT POTENTIALLY, AND THEN THE SEA WOLF PARK WASTEWATER TREATMENT PLANT.
MARIE ROBB: THIS IS A QUESTION TO BRIAN, WITH THE IMPROVEMENTS AND I KNOW SOME OF THE THINGS THAT PUBLIC WORKS ARE LOOKING AT, BUT THE WASTEWATER PLANT MEAN LITERALLY WE HAVE DEVELOPMENTS WAITING TO HAPPEN, BUT WE DON'T HAVE THE CONNECTION THAT'S CURRENTLY.
ARE YOU FACTORING THE AMOUNT OF DEVELOPMENT THAT WILL COME FROM ONE? BRIAN MAXWELL: YES, AND THAT'S WHAT THE SANITARY SEWER MASTER PLAN IS ALSO GOING TO DO FOR US DUE TO TELL US WHERE WE NEED TO BE DIRECTING THEM.
WE'RE DOING EVERYTHING WE KNOW NOW BASED ON THE PREVIOUS PLAN, BUT WE'RE GOING TO UPDATE THE PLAN.
BRIAN MAXWELL: SEWER PARK WASTEWATER TREATMENT, WHAT ARE WE DOING OUT THERE? BRIAN MAXWELL: WE HAVE REACHED CAPACITY FOR US TO PUMP OUT THERE.
WE STILL HAVE AN ACTIVE PLAN OUT THERE, IT'S JUST THE PLAN INVOLVES OUR TRUCK AND A PUMP.
BRIAN MAXWELL: WE'RE GOING TO HAVE A NEW PACKAGE.
BRIAN MAXWELL: BUT WE HAVE FOUND SOME VERY COST-EFFECTIVE SMALL PACKAGE PLANTS TO PUT OUT THERE.
IT WOULD BE FUNDED OUT OF THE PARK.
MICHAEL BOUVIER: [OVERLAPPING] WE'RE ALWAYS TALKING ABOUT WASTEWATER PUMP.
MALE_2: RIGHT NOW, WE'RE STILL PUMPING.
MICHAEL BOUVIER: ARE WE TALKING ABOUT? BRIAN MAXWELL: WE'RE TALKING ABOUT A TREATMENT PLAN.
UNKNOWN_1: YOU'RE TALKING REAL TREATMENT? BRIAN MAXWELL: YES.
MALE_2: YOU'RE ONLY LOOKING AT HALF A MILLION? MICHAEL BOUVIER: YEAH.
BRIAN MAXWELL: WE'VE GOT SOME SOLUTIONS THAT MAY COME IN THAT CHEAP IF IT COMES IN MORE THAN THAT, WELL, OBVIOUSLY I HAVE TO REGROUP, BUT THAT'S WHAT WE'RE LOOKING AT NOW.
[OVERLAPPING] TREENO IS LOOKING AT IT AND THESE HYBRID SYSTEMS AND THINGS WERE GETTING SOME GOOD FEEDBACK.
MICHAEL BOUVIER: IF THAT PLAN IS ALSO EXPANDABLE TOO.
BRIAN MAXWELL: ULTIMATELY GUYS, REMEMBER THIS IS JUST A VERY SMALL PACKAGE PLANT TO SERVE THE NEEDS THAT ARE THERE RIGHT TODAY.
ULTIMATELY, WE NEED TO PUT IN A PLANT FOR PELICAN ISLAND AND FOR THE ENTIRE ISLAND IN GENERAL, BECAUSE EVERYTHING ELSE ON THE ISLAND IS EITHER ON SOME TYPE OF SEPTIC OR IT'S GOING TO AIM IS PLANT WHERE WE'RE AT LEASING SPACE AND THEY BASICALLY HAVE TOLD US THEY DON'T HAVE MORE SPACE.
MICHAEL BOUVIER: THAT'S RIGHT.
BRIAN MAXWELL: YES, SIR, SO BUT THIS IS A STOPGAP.
FEMALE_2: THE SANITATION FUND, THERE WILL BE PROPOSED FEE CHANGES THAT WILL COME TO CITY COUNCIL IN A WORKSHOP FORMAT IN THE COMING MONTHS.
IF ANY CHANGES THAT ARE MADE WILL BE INCORPORATED INTO THE FUND UPON COUNCIL'S ADOPTION, THE PROPOSED FEE CHANGES COULD RESULT IN A PROJECTED 1.5 MILLION IN ADDITIONAL REVENUE, AND THIS WOULD BE USED TO ENSURE THAT THE REVENUE STREAM FUNDS BOTH OPERATIONS AND THE DEBT OBLIGATION.
BRIAN MAXWELL: WE WILL BE BRINGING THIS TO YOU TO FUTURE WORKSHOP BUT IT PRIMARILY INVOLVES HOW WE'RE DEALING WITH COMMERCIAL CUSTOMERS IN SEVEN DAY A WEEK CUSTOMERS.
RIGHT NOW, YOUR RESIDENTS ARE SUBSIDIZING ALMOST 80 PERCENT OF THAT RIGHT NOW.
FEMALE_2: WE'RE VERY FAR OFF MARKET.
BRIAN MAXWELL: YES, YOU'RE WAY OFF MARKET.
FEMALE_2: THE STREET CIP IS PROGRAMMED AT $5.8 MILLION.
THERE ARE MANY SOURCES OF REVENUE ASSOCIATED WITH THIS.
THERE'S OBVIOUSLY THE INFRASTRUCTURE AND DEBT SERVICE FUND, AS WE REVIEWED EARLIER.
THERE'S BEACH USER FEES PROPORTION OF IT, THERE IS SOME OTHER BEING FUNDED OUT OF IDC, TEXTILE AND ALSO SOME GRANTS.
A LOT OF WHAT YOU'RE SEEING IS ON SEAWALL BOULEVARD, YOU HAVE PEDESTRIAN IMPROVEMENTS, AND SIGNAL IMPROVEMENTS.
BASICALLY FROM 33RD STREET TO 103RD STREET.
THERE IS OBVIOUSLY THE STREETS TO MILL OVERLAY REHABILITATION THAT'S COMING
[02:55:03]
FROM INFRASTRUCTURE ON DEBT.THERE IS THAT HALF-A-MILLION ENTRY PROGRAM RESERVES, THERE WAS AN ISLAND WIDE ACTION SAFETY PLAN AND I BELIEVE THAT IS ON THIS COUNCIL AGENDA.
THERE ARE UPGRADES TO SIGNAL CABINETS AND CONTROLLERS, ELECTRICAL ITEMS LIKE THAT, AND THEN THEIR SIDEWALK AND THE SIDEWALK IN CONCRETE CREW,.
MARIE ROBB: WHICH I BELIEVE WE'RE GETTING SOME TEXTILE FUNDING FOR THE NEW TRAFFIC LIGHT.
MICHAEL BOUVIER: YOU ARE IT'S UP TOP HERE.
BRIAN MAXWELL: THESE ARE JUST THE EXPENSES, BUT YOU CAN SEE THE SOURCES UP TOP.
FEMALE_2: THE DRAINAGE CIP IS VERY MUCH FOCUSED ON THE PUMP STATIONS THAT WE'RE EXPLORING VIA ABOUT 7.9 MILLION DOLLARS OF CITY FUNDS AND POTENTIALLY 143 MILLION GRANT FUNDS.
THERE ARE THREE WARM WATER PUMP STATIONS THAT ARE IN DISCUSSION.
THEY ARE ALL PROGRAMMED THIS YEAR, ALTHOUGH PART OF THAT IS RELATED TO GETTING THE GRANTS AND THE FUNDING IS THEY WANT TO SEE YOU CAPTURING THAT IN YOUR CIP..
HOWEVER, REALISTICALLY SPEAKING MOST LIKELY NOT ALL OF THESE WILL BE STARTED AND DEFINITELY NOT COMPLETED IN THIS FISCAL YEAR.
THIS IS JUST A STARTING POINT AND DEMARCATION.
BRIAN MAXWELL: YOU HAVE TO SHOW THEM IN OUR BUDGET IN ORDER TO QUALIFY FOR SOME OF THE GRANT FUNDING, SO WE'RE SHOWING THEM.
BRIAN MAXWELL: A QUESTION ON THAT, BRIAN, I'VE NOTICED THE INCREASE OF THESE FUNDS BASED ON THE SEQUENTIAL PROCESS ON HOW THESE COME ONLINE, ARE THEY THE SAME TYPE OF SAME SIZE PUMP STATIONS? BRIAN MAXWELL: NO.
BRIAN MAXWELL: THEY'RE GOING TO BE DIFFERENT.
BRIAN MAXWELL: THE ONE AT SOUTH SHORE IS A LITTLE BIT BIGGER PUMP STATION AND THE OTHER THING IS I WANT YOU TO NOTE THAT WE GO OUT AND WE TOP LOAD THESE GRANTS AND BY THE TIME WE GET THROUGH ENGINEERING, THE COST ARE JUST UP.
WE GOT 54 MILLION FROM THE JELLO FROM THE SOUTH SHORE.
BRIAN MAXWELL: ENGINEERS ARE PROJECTING 67 PERCENT.
SAME ENGINEERS THAT GIVES US BETTER PROJECTING THE 67.5 NOW.
MICHAEL BOUVIER: HOW MUCH OF THAT 200 MILLION IS ACTUALLY FUNDED? BRIAN MAXWELL: RIGHT NOW FUNDED FROM GRANTS, PROBABLY ABOUT CLOSE TO 100 MILLION OF IT.
BRIAN MAXWELL: WE'RE STILL WAITING ON ANOTHER 100 MILLION DOLLARS.
BRIAN MAXWELL: THE WHOLE ENGLISH FIRE PUMP STATION IS WE HAVEN'T EVEN GOTTEN ANYTHING ON THAT CHECK.
WE'RE JUST JUMPING AHEAD A LITTLE BIT WITH IT TRYING TO GET THE PROPERTY THAT'S ALL.
THAT LEVERAGES UP ON THE LIST.
FEMALE_2: REVIEW YOUR GENERAL OBLIGATION DEBT.
YOU'LL SEE FY23 ON THE FAR LEFT THERE AND THEN YOU SEE A DIP COMING INTO THIS CURRENT OR THIS COMING FISCAL YEAR FY24 THAT IS A RESULT OF DEBT SERVICE RETIRING AND FY23, AND THAT'S ALSO WHAT'S DRIVING YOUR INS PROPERTY TAX RATE DOWN.
YOU'LL SEE THAT THE WAY YOUR DEBT WAS DESIGNED, IT'S GENERALLY LEVEL AND YOU SEE THE INTEREST DECREASING OVER TIME AS ADDITIONAL PRINCIPLE IS BEING PAID.
BRIAN MAXWELL: I WILL TELL YOU AS AMONGST CITIES IN TEXAS, WE STILL HAVE ONE OF THE ABSOLUTE LOWEST DEBT RATIOS, AND ASK THE PORT WHEN THEY COME UP WITH THEIR DEBT RATIO IS.
BRIAN MAXWELL: ONE OF THE LOWEST DEBT TAX RATES.
BRIAN MAXWELL: FEMALE_2: THEN ON THE WATER SEWER DEBT YOU WILL SEE SIMILAR THERE'S OBVIOUSLY BEEN A LITTLE MORE DEBT ISSUED HERE TO COMPLETE ALL OF THE CAPITAL RELATED TO WATER AND SEWER.
ONCE AGAIN YOU'RE SEEING THE LEVEL PAYMENTS FOR EACH BOND SALE AND THAT DECLINES AS ISSUES ARE RETIRED.
YOUR TOTAL DEBT IN THE SYSTEM IS 134 MILLION WITH 85 OF IT BEING PRINCIPAL AND 48 OF IT BEING INTERESTS.
BRIAN MAXWELL: THERE WILL BE DISCUSSIONS OF MORE DEBT COMING TO YOU IN THE NEXT YEAR OR TWO.
BRIAN MAXWELL: I'M SORRY, YOU'RE TOWARDS THE END.
QUESTIONS, FOLLOW UP ANYTHING.
BRIAN MAXWELL: HOW MUCH WITH OUR NEW CONTRACT DID WE PUT INTO PLACE COUPLE OF YEARS AGO WITH THE LIBRARY? HOW MUCH IS THAT SAVING US? I SHOULD SAY HOW MUCH IS IT? FEMALE_2: YOU'RE PROJECTING IT AND THAT IS INCLUDED IN YOUR DRAFT BUDGET.
WE ARE RIGHT NOW PROJECTING IT AT 1.4 MILLION, BUT THAT CALCULATION HAS NOT BEEN OFFICIALLY COMPLETED BECAUSE WE DON'T REALLY KNOW WHERE WE'RE GOING TO TIE OUT.
MAYBE BETWEEN 1.4-1.5 MILLION IN THAT RANGE IS WHAT'S GOING TO COME BACK AS A CONTRIBUTION TO THE CITY FROM THE LIBRARY.
BRIAN MAXWELL: AS I'VE TOLD YOU GUYS BEFORE CERTIFIED AIN'T WHAT IT USED TO BE.
WE USED TO BE ABLE TO NAIL THINGS A LITTLE BIT MORE FIRMLY AT THIS TIME OF YEAR.
NOW WE HAVE TO HAVE A LITTLE BIT MORE VARIABILITY.
BRIAN MAXWELL: THEN WE FIRST PUT THAT CONTRACT TOGETHER, CORRECT ME IF I'M WRONG, BUT WE HAD ABOUT 400,000 OR SO COME BACK UP TO 1.4,1.5.
BRIAN MAXWELL: JUST PURE GROWTH IN THE RANDOM.
MIKE LOFTIN: IT'S BASED ON ALL THAT GROWTH IN VALUE.
[03:00:01]
BRIAN MAXWELL: EXACTLY.BRIAN MAXWELL: WITHOUT THAT YOU WOULDN'T BE WORRIED.
QUESTIONS FOR THE FINANCING? BRIAN MAXWELL: THE LIBRARY STILL GETTING A VERY HEALTHY INCREASE.
JOHN PAUL LISTOWSKI: HOW MUCH IS YOUR INCREASE? FEMALE_2: THE SAME AS OURS OVERALL, SO WE'RE STILL WORKING ON THAT.
CALCULATION IS THE ONE THAT GOES IN THE FRONT OF YOUR BUDGET AND OURS INCREASES SOMEWHERE IN THE RANGE OF EIGHT PERCENT WE THINK, AND SO WE'LL BE COMPARABLE TO WHATEVER THE CITIES HAVE.
MIKE LOFTIN: WE WOULDN'T HAVE THIS CONVERSATION BEFORE TALKING TO MIKE.
FEMALE_2: BUT YOU'LL SEE, IF YOU GO BACK TO PAGE 5 OF YOUR PRESENTATION, YOU'LL SEE THE LIBRARY GROWTH AS WELL.
EVEN THOUGH THE TAX RATE IS STEADY, YOU'LL SEE THAT IN '21 THEY HAD 3.4 MILLION DOLLARS WORTH OF REVENUE.
WE'RE PROJECTING THEY'LL HAVE 5.8 THIS YEAR, AND OF THAT WE WOULD HAVE THE 1.4 COMING BACK TO THE CITY.
BRIAN MAXWELL: I WANT TO BE CLEAR.
I'D GO ON BACK TO PAGE 9 IF I COULD PLEASE.
WE HAVE THE TAX RATES OF NO NEW REVENUE, THE PROPOSED WITHOUT THE ADDITIONS THAT YOU'VE TALKED ABOUT.
IF WE MOVE TO JUST THE 3.5, IT'S OUTLINED AND IF WE WANTED TO COVER EVERYTHING THAT YOU HAD OUTLINED, WE WOULD MOVE TO THAT VARIANCE OF EIGHT PERCENT, IS THAT CORRECT? BRIAN MAXWELL: NO.
MIKE LOFTIN: VOTER APPROVAL RATING.
WE ARE PROPOSING THE GREEN SHADED COLUMN.
I WANT TO TAKE THIS OPPORTUNITY.
WE BUDGET AND I WANT TO CAUTION YOU ON THIS.
IF WE STAY RELATIVELY FLAT AND WE HAVE THREE-AND-A-HALF PERCENT GROWTH NEXT YEAR, KEEP IN MIND THAT COLLECTIVE BARGAINING CONTRACTS GO OUT FOUR YEARS.
I CAN TELL YOU THAT AS YOU REDUCE THIS YEAR'S NUMBER IS GOING TO BECOME MORE CHALLENGING TO MEET THE DEMANDS OF OUR PUBLIC SAFETY YEAR 2, 3 AND 4, BECAUSE COLLECTIVE BARGAINING GUYS IS NOT ONE AND DONE.
I CAN NAIL THIS YEAR PRETTY MUCH TO THE WALL WITH THEM BECAUSE WE'VE WORKED REALLY CLOSELY WITH THE UNIONS AND THEY'RE DOING A GOOD JOB WITH THIS YEAR, BUT YEARS 2, 3, AND 4 HAVE SOME VARIABILITY TO THEM AND YOU HAVE TO HAVE FLEXIBILITY OR ELSE YOU COULD IN THEORY END UP HAVING TO REDUCE CITY SERVICES IN ORDER TO COVER THE INCREASES IN THE LATTER YEARS.
MARIE ROBB: OR WE COULD GET CREATIVE AND LOOK AT HOW WE MIGHT BE ABLE TO USE.
BRIAN MAXWELL: THOSE ARE ALL OPTIONS ON THE TABLE.
BRIAN MAXWELL: ALL OPTIONS ON THE TABLE.
BRIAN MAXWELL: YOU'RE COVERING THE POLICE AND FIRE AND THE COOLER FOR THE CIVILIANS AND ALL THAT IN YOUR PROPOSED 0.40885? BRIAN MAXWELL: THAT'S FAR BECAUSE WE HAVEN'T WRAPPED UP YET, BUT THAT'S MY BEST SHOT AT IT.
DAVID COLLINS: WHAT IS THE SIGNIFICANCE OF THE VOTER APPROVAL RATE EIGHT PERCENT? FEMALE_2: THE TRUTH AND TAXATION CALCULATION ALLOWS THAT IF ONE PROPERTY OWNER IN YOUR JURISDICTION HAS A DISASTER EXEMPTION, THEN THE CITY LEGALLY CALCULATE THE VOTER APPROVAL RATE AT EIGHT PERCENT.
THERE IS EXACTLY ONE PROPERTY IN GALVESTON THAT HAS A DISASTER EXEMPTION AND SO WHEN THE TAX ASSESSOR'S OFFICE CALCULATES BASED ON THAT, THEN THEY CALCULATE THE LEGAL RATE AT EIGHT PERCENT.
WE ARE NOT RECOMMENDING YOU GO TO THAT BY ANY MEANS.
ONLY REASON IT'S PRESENTED IS BECAUSE THAT IS WHAT'S GOING TO BE PUBLISHED AS YOUR VOTER APPROVAL RATE BECAUSE THAT'S HOW THE TRUTH IN TAXATION WORKSHEET WORKS.
HOWEVER, WE WANTED THAT 3.5 BENCHMARK IN THERE BECAUSE WE BELIEVE THAT IT'S THE MOST REALISTIC BENCHMARK FOR THE CITY AT THIS POINT.
DAVID COLLINS: DO I UNDERSTAND THIS YOU'RE LOOKING AT THESE, WE COULD GO TO EIGHT PERCENT WITHOUT TRIGGERING AN ELECTION? MARIE ROBB: NO.
MARIE ROBB: OH, WE COULD? BRIAN MAXWELL: SURE.
JOHN PAUL LISTOWSKI: BECAUSE OF THE DISASTER PROPERTY.
FEMALE_2: YES, THIS ONE DISASTER PROPERTY,.
YOU COULD GO TO THE EIGHT PERCENT WITHOUT TRIGGERING AN ELECTION, HOWEVER I DON'T KNOW THAT.
[OVERLAPPING] FAILED WE GO BACK TO A NO NET REVENUE.
BRIAN MAXWELL: BUT YOU COULD GO UP TO EIGHT PERCENT WITHOUT TRIGGERING AN ELECTION.
[OVERLAPPING] TO HAVE AN ELECTION.
BRIAN MAXWELL: IT'S NOT AND WE'RE NOT PROPOSING THAT.
DAVID COLLINS: BUT I JUST WANTED TO KNOW WHY.
BRIAN MAXWELL: THAT'S A GREAT QUESTION TO STATE WHY ARE WE LOOKING AT EIGHT PERCENT.
MIKE LOFTIN: IT SAYS SAME PROVISION THAT'S CAUSED THE STATE LEGISLATURE TO CONSIDER MORE SEVERE THINGS THAT WOULD HURT US IN OTHER WAYS.
SOME JURISDICTIONS HAVE TAKEN ADVANTAGE OF THAT PROVISION AND RAISED THEIR RATES EIGHT PERCENT.
JOHN PAUL LISTOWSKI: IF WE HAD HURRICANE AND WE HAD DECLARED DISASTER, WE COULD
[03:05:04]
GO TO AN EIGHT PERCENT RATE.WE'RE SAVING THAT EIGHT PERCENT FROM WHEN WE NEED IT.
BRIAN MAXWELL: WE'RE NOT GETTING GREEDY, WE WANT TO TAKE CARE OF OUR RESIDENTS.
MIKE LOFTIN: DISASTER EXEMPTION IN THE LAW CAME ABOUT BECAUSE SYDNEY GALVESTON FOUGHT FOR IT.
IT WAS EXACTLY TO COUNTER THE EFFECTS OF A MAJOR STORM.
MICHAEL BOUVIER: WE WROTE THAT LEGISLATION.
BRIAN MAXWELL: YOU KNOW THE WAY THIS SYSTEM IS STRUCTURED WITH THIS THREE-AND-A-HALF PERCENT GOING TO THE 0.40885 IS FINE, BUT IT LOWERS OUR BENCHMARK.
BRIAN MAXWELL: WE'VE GOT MORE AND IT JUST PERPETUATES ITSELF TO GIVE US MORE AND MORE PROBLEMS AS WE MOVE.
BRIAN MAXWELL: I WILL TELL YOU THAT YOUR PUBLIC SAFETY COST ARE GROWING AND I'M NOT SAYING ANYTHING NEGATIVE BECAUSE THESE ARE ACTUAL COST.. ALL I'M TRYING TO DO IS KEEP OUR GUYS ON PACE WITH MARKET IN OUR COUNTY.
I'M NOT GOING OUT AND SAYING I WANT TO COMPETE WITH MIAMI OR ANY OF THESE OTHER HUGE DEPARTMENT.
I AM JUST TRYING TO KEEP THEM ON TASK WITH PLACES LIKE LAKE CITY OR TEXAS CITY.
THAT'S ALL WE'RE TRYING TO DO WITH THEM AND BETWEEN THEIR WAGES AND THEIR COST OF EQUIPMENT, IT IS OUTSTRIPPING THREE-AND-A-HALF PERCENT GROWTH.
THE ISSUE IS AND I KNOW YOU'RE GOING TO HEAR IT, WELL, HOW DOES THIS CITY DO IT AND HOW DOES THIS COUNTY DO IT? THEY HAVE LARGE SWATHS OF LAND THAT THEY ARE GETTING LARGE NEW CONSTRUCTIVE GROWTH.
WE DO NOT HAVE WITH OUR INFILL DEVELOPMENT, EVEN WITH THE GUY BUILDING 167 HOMES.
GUYS, 167 HOMES IN LAKE CITY GETS DIGESTED LIKE THAT.
THAT WE DON'T HAVE ENOUGH GROWTH TO SUSTAIN THE COST OF OUR PUBLIC SAFETY LONG TERM.
BRIAN MAXWELL: YOU'RE EXACTLY RIGHT IN THOSE CITIES LIKE LAKE CITY AND EVERYTHING.
BRIAN MAXWELL: TEXAS CITY TOO.
BRIAN MAXWELL: THEY'LL EVENTUALLY GET TO THE POINT WHERE YOU'RE.
BRIAN MAXWELL: WERE AN OLDER MATURE CITY, AND IT WILL IMPACT US FIRST, AND WE ARE ALSO AN OLDER MATURE CITY WITH A LARGE DRAIN ON RESOURCES BEYOND OUR 50,000 IN POPULATION.
THERE'S A WHOLE LOT OF FACTORS THAT GO INTO THIS, BUT THE LION'S SHARE OF IT IS THAT WE DON'T GET ENOUGH AD VALOREM GROWTH.
NEW CONSTRUCTIVE GROWTH BECAUSE THEY CAN SAY I'M ON A NEW REVENUE, BUT THEY'VE GOT EIGHT PERCENT NEW CONSTRUCTION GROWTH.
I DON'T HAVE THAT, SO JOHN PAUL IS DOING HIS BEST.
HE'S BUILDING AS MUCH NEW STUFF AS HE CAN, BUT HE'S JUST FALLEN DOWN ON US.
[LAUGHTER] IS WE DON'T HAVE A VOLUNTEER OF FIRE DEPARTMENT.
I'M STRUGGLING WITH THE FIRE DEPARTMENT NOW AND WITH THEIR HELP, WE ARE FINDING COMPARABLE DEPARTMENTS.
I HAD TO GO AS FAR AS PORT ARTHUR TO FIND ANOTHER CITY, OUR SIZE, AND TYPICALLY TO FIND ANOTHER CITY OUR SIZE WITH A FULL-TIME PAID FIRE DEPARTMENT, IT'S USUALLY A BIG INDUSTRIAL CITY LIKE PORT ARTHUR, LIKE TEXAS CITY, COMPARABLE SIZE CITIES, COMPARABLE SIZE DEPARTMENTS.
HOWEVER, THEY HAVE A LARGE INDUSTRIAL PROPERTY TAX BASE.
SO THAT IS ALSO A BIG DIFFERENCE FOR US WITH A FULL-TIME FIRE DEPARTMENT.
GUYS, IF YOU WANT TO HAVE GROWTH AT THE AIRPORT, IF YOU WANT TO HAVE ALL THOSE THINGS, YOU HAVE TO HAVE A PAID FIRE DEPARTMENT.
NOBODY HERE IS PROPOSING THAT WE NOT HAVE A PAID FIRE DEPARTMENT, BUT IT'S JUST A FACT OF LIFE THAT WHEN WE GO OUT ON A COMPARATIVE BASIS, LOOKING AT A CITY LIKE US WITH A RELATIVELY SMALL INDUSTRIAL BASE, WE'RE OUT THERE IN THE WAY MINORITY WITH A PAID FIRE DEPARTMENT OF 110 FIREFIGHTERS.
WE HAVE AN EXCELLENT FIRE DEPARTMENT.
IT'S ONE OF THE BEST IN THE STATE, WE ARE WORKING REALLY CLOSELY WITH THEM, BUT THAT IS A BIG DEAL.
WE'RE TRYING TO COMPETE WITH POLICE, WITH LAKE CITY AND IN THOSE AREAS FOR POLICE AND THEIR DIRECT COMPETITORS TO US FOR POLICE.
BUT LAKE CITY CAN GET UP THERE BECAUSE THEY'RE NOT PAYING A FIRE DEPARTMENT.
WHEN YOU START LOOKING AT OUR PUBLIC SAFETY COSTS AND YOU LUMP IN A $2 MILLION LADDER TRUCK AND A $2 MILLION PAMPERS, AND 110 FIREFIGHTERS AND MINIMUM STAFFING OF FOUR GUYS ON A TRUCK, GUYS, THIS GETS EXPENSIVE IN A HURRY.
BRIAN MAXWELL: JOHN, AND THEN DAVID.
JOHN PAUL LISTOWSKI: MAYER, I WANT TO CONTINUE THE POINT THAT YOU MADE.
I'M TRYING TO REMIND MYSELF NOW.
FEMALE_2: THE BENCHMARK IS LOWERED BY GOING BELOW THE THREE-AND-A-HALF PERCENT.
JOHN PAUL LISTOWSKI: THANK YOU.
WITH THAT THOUGHT, YOU'RE BASICALLY SAYING, HEY, WE NEED TO RAISE OUR RATE EVERY YEAR TO THE THREE-AND-A-HALF PERCENT NO MATTER WHAT.
[03:10:01]
I DON'T UNDERSTAND THAT LOGIC.I DON'T I DON'T UNDERSTAND HOW YOU CONTINUE TO RAISE THAT RATE EVERY YEAR.
BRIAN MAXWELL: THAT IS NOT MY POINT.
WE NEED TO BE AS EFFICIENT AS POSSIBLE IN THIS CITY AND OUR OPERATIONS.
WE NEED TO WORK TOWARDS GIVING TAX RELIEF TO OUR CITIZENS IN THE BEST POSSIBLE WAY WE CAN.
I'M NOT AGAINST WHAT'S PROPOSED HERE AT ALL.
I JUST WANT BRINGING UP THE POINT THAT AS YOU LOWER THIS AND AS WE'RE DOING THIS, AND I THINK IT'S AN APPROPRIATE THING TO DO THREE, FIVE YEARS FROM NOW, IT'S GOING TO GET REAL TOUGH IN THIS CITY.
JOHN PAUL LISTOWSKI: IF YOU, IF YOU STAY THE COURSE.
BRIAN MAXWELL: WHAT DO YOU MEAN? JOHN PAUL LISTOWSKI: THE COURSE OF INCREASING OUR BUDGET EVERY YEAR THAT MUCH TO MAKE UP THOSE DIFFERENCES? BRIAN MAXWELL: YOU MEAN THE THREE-AND-A-HALF PERCENT? JOHN PAUL LISTOWSKI: NO, THE BUDGET ITSELF.
YOU RAISE THE BUDGET, YOU HAVE TO SET THE RATE TO MATCH YOUR BUDGET, AND IF YOU DON'T HAVE THE REVENUE, THAT'S THE ONLY PLACE YOU'RE LOOKING TO GET THE REVENUE FROM IS THE TAX RATE, YOU'RE GOING TO HAVE PROBLEMS. BRIAN MAXWELL: EXACTLY.
JOHN PAUL LISTOWSKI: WE'VE TRIED TO BE CREATIVE IN BRINGING IN NEW REVENUE, AND I THINK WE'VE DONE A DECENT JOB, BUT OVER MILLION DOLLARS.
BRIAN MAXWELL: WE'VE DONE A GREAT JOB.
JOHN PAUL LISTOWSKI: BUT IT IS LACKING SIGNIFICANTLY TO KEEP UP WITH ADMIN.
WE NEED TO STEP THAT SIDE UP TREMENDOUSLY ON HOW WE BRING IN ADDITIONAL REVENUE.
I UNDERSTAND, BRIAN, WHEN YOU TALK ABOUT THE OTHER COUNTIES AND HOW THEY DO IT AND THEY HAVE LOTS OF LAND AND THEY HAVE LOTS OF DEVELOPMENT.
WE'RE NOT EVER GOING TO BE A RURAL AREA THAT HAS TONS OF LAND DEVELOPMENT AND COUNT ON OUR NEW CONSTRUCTION TO SUBSIDIZE THIS.
WE HAVE TO LOOK AT THIS AT A TOTALLY DIFFERENT WAY THAN WHAT WE CURRENTLY ARE BECAUSE OUR $2 MILLION THAT WE'RE BRINGING IN THIS YEAR OVER THE LAST YEARS FROM ADDITIONAL REVENUE STREAMS IS NOT GOING TO CUT IT.
BRIAN MAXWELL: WELL, YOU'RE EXACTLY RIGHT AND IT IS GOING TO PROBABLY SETTLE IN JUST FROM THE PORT.
I'M JUST GUESSING HERE WITH THE TARIFFS AND ALL THAT, IT'S GOING TO SETTLE IN OVER $2 MILLION.
JOHN PAUL LISTOWSKI: IT'S 3 MILLION.
BUT YOU'RE SAYING OVER THE YEARS THAT NUMBER IS GOING TO GO UP TREMENDOUSLY.
YOU HAVE TO LOOK AT MAJOR CHANGES TO BRING IN THAT REVENUE.
BRIAN MAXWELL: YOU'RE EXACTLY RIGHT.
I THINK ONE OF THEM, WE PUT A LOT OF THE TENSION THIS COUNCIL HAS, I THINK, A YEAR OR SO AGO, LOOKING AT 10 OR 12 AREAS THAT WE COULD LOOK AT FOR ALTERNATIVE REVENUES AND STAFF HAS DONE A GOOD JOB AND I WANT TO BRING UP THE PORT HAS DONE A GOOD JOB IN PARTNERING WITH US TO MAKE SURE THAT WE'RE CHECKING THOSE THINGS OFF OUR LIST.
THE OTHER ISSUE THOUGH THAT WE'RE GOING TO HAVE TO LOOK AT VERY CLOSELY COMING UP IS NOT ONLY NEW REVENUE SOURCES, BUT WE'RE GOING TO HAVE TO LOOK AT AREAS WHERE WE CAN SUPPLEMENT OPERATIONAL EXPENSES FROM OTHER REVENUE STREAMS TO FREE UP MONEY IN OUR BUDGET TO COVER SOME OF THESE COST INCREASES.
THAT IS INVOLVED WITH, IN MY OPINION, THE HOTEL OCCUPANCY TAX ON HOW WE NEED TO LOOK AT THAT AND HOW WE CAN REALLY WORK WITHIN THE GUIDELINES TO MAKE THAT WORK FOR US HERE AT THE CITY, THAT FEES FREEZE UP EXTRA MONEY FOR US.
FIRST OF ALL, WE USED TO SET A BUDGET AND WE'D SET A TAX RATE.
THEN WE REALLY GOT INTO WHEN I GOT HERE, WE STARTED DOING FIVE-YEAR BUDGETING, BUT WE WERE STILL DOING MONO YEAR TAXATION.
WITH THE ADVENT OF THE THREE-AND-A-HALF PERCENT CAP, YOU HAVE TO ACTUALLY ASSESS TAXES BASED ON YEARS 2, 3, AND 4 BECAUSE THERE'S A MULTIPLIER EFFECT ON THERE WITH THE THREE-AND-A-HALF PERCENT, YOU'RE LIMITED IN YOUR GROWTH.
SINCE WE'RE PASSING BUDGETS THAT GO OUT THREE OR FOUR YEARS, OUR PROJECTS SPAN MULTIYEAR IS WE HAVE TO MAKE SURE WE'RE KEEPING UP WITH THAT.
THAT WILL ALWAYS FACTOR INTO IT, BUT WE'RE ALWAYS GOING TO COME TO YOU AS CONSERVATIVE AS WE CAN AND I THINK WE'VE PROVED TO YOU WE COULD.
THE BIGGER THING THOUGH, TOUCH ON WHAT THE MAYOR TALKED ABOUT WITH HOT AND EVERYBODY SAYS, OH MY GOD, ALL YOUR PROBLEMS ARE CAUSED BY PEOPLE THAT STAY IN HOTELS.
I TOTALLY BELIEVED THAT THAT WAS A CORRECT ARGUMENT USED IN THE PAST.
HOWEVER, WE HAVE NOW SPREAD OVER 50 PERCENT OF OUR HOT TAX COLLECTIONS THROUGH OUR NEIGHBORHOODS, RIGHT IN OUR COMMUNITY WHERE OUR NEIGHBORS LIVE.
A SHORT-TERM RENTAL USER OR OCCUPANT, IS A MUCH MORE EXPENSIVE OCCUPANT FOR THE CITY TO SERVICE THAN A HOTEL OCCUPANTS.
I BELIEVE WHAT THE MAYOR IS SAYING AND WHETHER THAT'S 1 PERCENT MORE OR 20 PERCENT MORE, WE'RE GOING TO DETERMINE THAT THROUGH OUR RESEARCH THAT WE'RE DOING WITH OUR SOFTWARE AND ALL THAT OTHER STUFF.
BUT I DO BELIEVE IT'S ROCKETED, SAY, OKAY, I NEED TO PAY FOR FOUR POLICEMEN.
THEY'RE GOING TO STAY IN THE TOURIST AREA ON THE SEAWALL WHERE MOST OF THE HOTELS ARE AND WE DID THAT OR ON THE BEACH.
BUT WE'VE DONE THAT, EXCEPT NOW, MY EIGHT MILLION VISITORS ARE NOT JUST
[03:15:04]
CONCENTRATED THERE.THEY'RE CONCENTRATED ALL THROUGHOUT THE CITY.
THEY'RE STAYING IN YOUR NEIGHBORHOOD, THEY'RE STAYING IN MY NEIGHBORHOOD.
THERE'S A LEGITIMATE LOGIC BEHIND USING SOME OF THIS MONEY IN A VERY PROACTIVE WAY TO HELP WITH SOME OF THESE COSTS BECAUSE THAT'S WHAT DRIVES A LOT OF OUR PUBLIC SAFETY COSTS.
YOU NOW HAVE PEOPLE HAVING ACCIDENTS IN THE MIDDLE OF TOWN.
THEY WOULD HAVE NEVER BEEN IN THE MIDDLE OF TOWN ABSENT, THEY'RE GOING TO THEIR SHORT-TERM RENTALS.
SO YOU CAN'T, AND I'M NOT BLAMING THE SHORT-TERM RENTAL ASSOCIATION FOR THAT, IT'S JUST A FUNCTION OF HOW IT WORKS.
BRIAN MAXWELL: DAVID COLLINS, DO YOU HAVE SOMETHING? DAVID COLLINS: THIS IS THE LAST TIME WE'RE GOING TO HAVE THIS CONVERSATION.
BRIAN MAXWELL: WE'VE BEEN HAVING IT FOR SIX YEARS.
[LAUGHTER] WE HAVE EVERY SUMMER.
MARIE ROBB: WE STILL WILL HAVE THAT CONVERSATION.
BUT JOHN AND I HAVE BEEN TALKING ABOUT THIS EVERY YEAR FOR SIX YEARS.
YES, WE NEED TO FIND NEW SOURCES OF REVENUE OR WE FIND THINGS TO CUT THE BUDGET IF THIS IS WHAT IT COSTS TO RUN THE CITY.
THERE IS NOT SOME FLUFF CATEGORY IN HERE THAT YOU CAN OH, WELL, IF WE JUST STOPPED DOING THAT.
YOU CAN SAY PLEASE JUST CUT THE TRANSPORTATION DEPARTMENT NOW, MAYBE WE CAN SAVE A MILLION DOLLARS A YEAR, A MILLION AND A HALF.
IT'S NOT DRAMATIC MONEY, BUT WHAT'S NEXT ON THAT BLOCK IS PARKS AND REC.
WHEN YOU'RE RIGHT DOWN TO IT, MOST PARKS AND REC.
MAYBE MOST OF PARKS AND REC ARE PAID OUT AT IDC.
THEY'RE NOT THAT BIG AN IMPACT ON THE GENERAL FUND.
THE QUESTION BECOMES WHAT DO YOU CUT BECAUSE WE CAN'T CUT THE PART OF ARMOR, WE CAN'T CUT THE POLICE DEPARTMENT.
EVEN IF WE DID START CUTTING PERSONNEL, THOSE ARE PENSION COSTS OR SO ENORMOUS THAT IT WOULDN'T SAY IT WAS A GIANT SCANS OF MONEY.
IF WE'RE TALKING ABOUT THREE-AND-A-HALF PERCENT INCREASE, WE'RE TALKING ABOUT SOMETHING WAY TO FOUR MILLION DOLLARS.
WHAT DID WE DECIDE THAT WAS? FEMALE_2: 3.2 MILLION.
DAVID COLLINS: IS A? FEMALE_2: IS TO THE THREE-AND-A-HALF BAR.
BRIAN MAXWELL: THREE-AND-A-HALF TO FOUR.
FEMALE_2: FOUR UNDERNEATH, YEAH.
DAVID COLLINS: THERE IS ABOUT 300 AND SOMETHING THOUSAND MORE DOLLARS.
IF YOU WERE? BRIAN MAXWELL: YOU WENT TO THE THREE-AND-A-HALF PERCENT.
THE DIFFERENCE BETWEEN THAT AND THE NEW REVENUE RATE? FEMALE_2: ABOUT 2.2 MILLION.
THAT HAS TO COME FROM SOMEWHERE.
HERE WE'RE 12 MONTHS LATER IN MONTH 2 OF IMPLEMENTING ONE OF THOSE, IT LAGS.
WE HAVE BEEN GREAT IF WE'D SAID, OH, THAT'S A GOOD IDEA AND COULD HAVE IMPLEMENTED THAT AND GOT THAT MILLION DOLLARS A YEAR OUT OF PARKING REVENUE.
WE'VE TALKED OVER AND OVER ABOUT PLACES WE CAN USE HOTEL TAX TO OFFSET THE COST OF TOURISM, BUT THE FACT IS I DON'T THINK YOU CAN DO THIS IN REVENUE RATE.
I DON'T SEE HOW THAT'S SUSTAINABLE AT ALL GIVEN THE GROWTH THAT WE HAVE [NOISE] IN PUBLIC SAFETY.
I JUST DON'T THINK THERE IS THAT MUCH MONEY OUT THERE.
WE ARE DIGGING A HOLE, THE LEGISLATURE HAS PUT US IN A CORNER.
WHY DO YOU SAY THE LEGISLATURE HAS PUT US IN A CORNER? BECAUSE THEY DON'T FACTOR IN THINGS LIKE THE INCREASED COST OF PUBLIC SAFETY.
THEY KNOW DAMN GOOD AND WELL THAT THE COST OF PUBLIC SAFETY HAS GONE TO WAR IN THREE-AND-A-HALF PERCENT A YEAR.
THIS IS ABOUT BUYING VOTES WITH LEGISLATION.
I GET IT, BUT WE DON'T HAVE THE GROWTH.
WE'RE STATIC; NOT EXACTLY, BUT WE'RE CLOSE TO BEING STATIC IN GROWTH.
SOMETHING IS GOING TO HAVE TO GIVE AND BRIAN'S RIGHT.
I'VE BEEN SAYING THIS EVERY YEAR THAT THIS IS A GROWING PROBLEM.
IF WE COULD MAGICALLY FIND ANOTHER FIVE MILLION DOLLARS OF REVENUE SOMEPLACE, I'M ALL FOR IT, BUT I DON'T KNOW THAT IT'S OUT THERE.
JOHN PAUL LISTOWSKI: LET ME JUST ASK QUESTION THAT YOU'VE TALKED ABOUT THE LEGISLATION PUT US IN A CORNER.
[NOISE] CAN MEET THAT RIGHT FAIRLY WELL.
ARE YOU SAYING THAT THERE MIGHT COME A TIME WHERE BY REDUCING OUR RATE TO THIS 0.4 YOU CAN PUT US BEHIND IN SOME POINT BECAUSE WE CAN'T GO OVER THE THREE-AND-A-HALF THAT, THAT'S WHEN WE WOULD BE BACKED INTO THE CORNER? DAVID COLLINS: I THINK WE'RE GETTING BACK INTO THAT CORNER REAL FAST HERE.
BRIAN MAXWELL: BECAUSE IT'S A COMPOUNDING NUMBER.
DAVID COLLINS: THIS IS THE POINT, YOU QUESTION ABOUT USING THAT LOWERING THE BENCHMARK.
JOHN PAUL LISTOWSKI: WHAT WOULD YOU DO IF THEY DIDN'T DO THAT THOUGH? WELL, WHAT IF THIS WASN'T A LEGISLATIVE ISSUE? BRIAN MAXWELL: WELL, AND THAT'S A GOOD POINT.
DAVID COLLINS: WHERE WOULD YOU SAY.
[03:20:01]
BRIAN MAXWELL: I CAN ANSWER THAT TOO.BECAUSE BEFORE THIS WAS A LEGISLATIVE ISSUE, I HAD PRETTY MUCH 8 PERCENT TO PLAY WITH IN COMING YEARS WHERE YOU CAN MAKE UP A LOT OF GROUND.
IF WE HAD A BIG CHANGE AND WE HAD TO MAKE A BIG CHANGE, I HAVE 8 PERCENT TO WORK WITH WITHOUT GOING TO THE VOTERS IN FUTURE YEARS.
NOW I'M LIMITED TO THREE-AND-A-HALF PERCENT.
YOU SEE WHAT THREE-AND-A-HALF PERCENTIS? IT'S NOT A WHOLE LOT OF MONEY, SO GIVEN OUR RECURRING NORMAL COST, I HAVE ZERO FLEXIBILITY.
IF WE GET HIT WITH SOMETHING OUT OF THE BLUE, I DON'T HAVE THE FLEXIBILITY IN FUTURE YEARS TO ADJUST THE TAX RATE TO AN ADEQUATE RATE WITHOUT GOING INTO THE VOTERS THAT YOU USED TO HAVE.
I'M NOT SAYING I NEED IT TODAY, BUT YOU'VE LOST ALL YOUR FLEXIBILITY, AND SO NOW YOU HAVE TO START PLANNING WHEN YOU DO THIS TAX RATE YOU JUST DON'T LOOK AT IT FOR THIS YEAR.
YOU HAVE TO LOOK AT YOUR POLICE CONTRACTS IN YEAR 3 AND YOU HAVE TO LOOK AT WHAT YOU THINK A POLICE CAR IS GOING TO COST IN YEAR 3 AND WHAT A FIRE TRUCK IS GOING TO COST IN YEAR 3 AND IT'S THREE-AND-A-HALF PERCENT THAT ONE YEAR GOING TO COVER IT OR DO YOU HAVE TO COMPOUND THAT THREE-AND-A-HALF PERCENT TO GET THERE BECAUSE WHEN I HAD 8 PERCENT THAT PRETTY MUCH COVERED EVERYTHING.
JOHN PAUL LISTOWSKI: BUT THIS WOULD BE THE RATE THAT YOU WOULD PROPOSE IF WE DIDN'T HAVE THIS MANDATE SET BY THE STATE? BRIAN MAXWELL: YEAH.
JOHN PAUL LISTOWSKI: YOU WOULD STILL BE [OVERLAPPING].
BRIAN MAXWELL: I'M NOT GOING TO ATTACK SOMEBODY FOR JUST THE FUN OF IT, BUT THE PROBLEM IS THAT WHEN WE HAD THE FLEXIBILITY IN FUTURE YEARS YOU HAD NO PROBLEM WITH THIS.
JOHN PAUL LISTOWSKI: TO DAVID'S POINT THOUGH, I GUESS WE'RE BACKED INTO THE CORNER IF WE EVER HAVE THAT ISSUE WHERE WE JUST GET HIT HARD ONE YEAR AND [OVERLAPPING] NECESSARILY EVEN IF YOU GET HARD.
JOHN PAUL LISTOWSKI: THE STATE IS PROPOSING A RATE THAT'S UNDER THE THREE-AND-A-HALF PERCENT.
THE STATE REALLY HASN'T PUT US IN THAT CORNER THIS YEAR, AT LEAST I GUESS.
BRIAN MAXWELL: THAT'S CORRECT.
THAT'S IF YOU LOOK AT IT ONE YEAR AT A TIME, YOU'RE CORRECT.
BRIAN MAXWELL: YOU'RE CORRECT.
JOHN PAUL LISTOWSKI: BUT Y'ALL LOOKING AT IT LIKE THAT.
YOU'RE NOT LOOKING AT ONE YEAR AT TIME, YOU'RE LOOKING AT NEXT THREE OR FOUR YEARS AND YOU'RE STILL PROPOSING THIS RATE.
BRIAN MAXWELL: TO SOMETHING MARIE SAID EARLIER SHE SAYS, WELL, YOU ALWAYS EXCEED THAT.
WE'RE COUNTING ON A LOT OF THAT, YOU ALWAYS EXCEED THAT IN YEARS 2, 3, AND 4.
IF WE DON'T ALWAYS EXCEED IT AND THERE IS SOME INDICATION THAT WE MAY NOT, Y'ALL GOING TO HAVE REAL PROBLEM.
BRIAN MAXWELL: THERE IS TWO POINTS HERE.
I'M SORRY DAVID FINKLEA HAVE SOMETHING TO SAY.
DAVID FINKLEA: GO AHEAD, MAYOR.
BRIAN MAXWELL: THANK YOU, DAVID.
THE BOTTOM LINE IS, IN MY MIND, WE'RE CAPPED AT THREE-AND-A-HALF PERCENT OF OUR INCREASED COST OF DOING BUSINESS OF RUNNING THIS CITY.
I WISH I COULD SAY THAT THOSE COSTS WOULD CAP AT THREE-AND-A-HALF PERCENT THEY DON'T.
THAT'S JUST THE NATURE OF IT AND IT'S GOING TO CONTINUE EVERY YEAR THAT WAY, BUT IT WILL BEHOOVE THIS COUNCIL TO LOOK AT COMING UP HERE ONCE THIS BUDGET IS APPROVED WE'RE GOING TO NEED TO LOOK AT IT AS WE DID.
WE'RE GOING TO NEED TO TALK AND LOOK AT THINGS OUTSIDE OF THE BOX OF LOOKING AT ADDITIONAL REVENUES AND HOW WE CAN USE MORE EFFICIENTLY THE REVENUES WE HAVE AND THE SERVICES THAT WE'RE PROVIDING HERE AT THE CITY.
WE TOO NEED TO TAKE A VERY SERIOUS LOOK AT THOSE SERVICES AND SEE HOW WE CAN MAKE THOSE EITHER MORE EFFICIENT OR EVEN POSSIBLY IN SOME INSTANCES CHANGE THOSE SERVICES DRAMATICALLY.
DAVID COLLINS: THERE ARE OPPORTUNITIES THAT WE'RE FORGOING.
YOU WANTED TO DO SOMETHING ABOUT HOMELESSNESS.
WHEN WE TALKED ABOUT THAT BEFORE, THERE IS NO MONEY IN THIS MANNER TO HOMELESS PROBLEM.
THERE IS NO MONEY UNDER THIS CAP TO DO THAT.
THAT IS NOT A NEW PROGRAM WE COULD TAKE ON THAT.
THAT'S JUST AN EXAMPLE OF SOMETHING WE CAN'T DO.
CAN WE AFFORD TO BUILD A NEW FIRE STATION? JOHN PAUL LISTOWSKI: NO.
BRIAN MAXWELL: BUT REMEMBER DEBT FALLS OUTSIDE THE THREE-AND-A-HALF PERCENT, BUT THE VOTERS HAVE TO VOTE ON THAT.
BRIAN MAXWELL: VOTERS TO DO THAT.
DAVID COLLINS: I JUST THINK WHEN YOU SAY THAT WE'RE MANAGING IT YEAR-OVER-YEAR, WE ARE.
I THINK THE STAFF HAS DONE A GREAT JOB OF KEEPING US UNDER THAT THREE-AND-A-HALF PERCENT BUT WE'RE BAND-AIDING THIS.
IT'S GOING TO EXCEED THE THREE-AND-A-HALF.
JUST THE COST OF OPERATIONS WHERE IT'S NOT HAPPENING AS FAST AS I THOUGHT IT WAS GOING TO, BUT IT'S GOING TO HAPPEN.
YOU CAN'T WATCH PUBLIC SAFETY COSTS GO UP AT 10 PERCENT A YEAR AND YOUR REVENUE INCREASED SCOPE OF THREE-AND-A-HALF PERCENT A YEAR AND NOT FACE A PROBLEM.
BRIAN MAXWELL: ESPECIALLY WHEN PUBLIC SAFETY IS APPROACHING 80 PERCENT OF YOUR BUDGET.
BRIAN MAXWELL: AGAIN, I'M NOT MAKING EXCUSES, BUT YOU HAVEN'T PAID FIRE DEPARTMENT, YOU HAVE A POLICE DEPARTMENT THAT MANY WOULD ARGUE IS NOT BIG ENOUGH, BUT IT IS TWICE THE SIZE OF MOST CITIES OUR SIZE.
BRIAN MAXWELL: THERE IS REASONS FOR ALL THAT.
WE NEED TO LOOK AT THOSE REASONS AND DIVE IN AND MAKE SURE THOSE REASONS ARE PAYING FOR THOSE COSTS AND THAT'S WHAT WE'RE DOING.
[03:25:01]
WE'RE LIMITED BY STATUTORY AUTHORITIES AND STATUTORY USE OF MONEY AND ALL THOSE TYPE OF THINGS, BUT THE OTHER THING TOO IS TO REMEMBER THE MOST STABLE THING THAT YOU HAVE TO DO IS PROVIDE THOSE PUBLIC SAFETY SERVICES.WHEN PEOPLE CALL 911, PEOPLE NEED TO COME.
YOU NEED TO MATCH YOUR MOST STABLE SERVICES WITH YOUR MOST STABLE REVENUES AND WE'RE REALLY CLOSE TO NOT DOING THAT.
DAVID COLLINS: IT'S ALSO A POINT WORTH NOTING THAT THE COST OF PUBLIC SAFETY IN THIS TOWN IS AS GREATER THAN THE AMOUNT OF REVENUE RAISED BY EVERY ONE TAXED.
DAVID COLLINS: YOUR PROPERTY TAXES DO NOT COVER THE COST OF PUBLIC SAFETY RATE.
BRIAN MAXWELL: THAT'S CORRECT.
DAVID COLLINS: OF COURSE, YOU CAN SAY, WELL, WHAT PERCENTAGE IS THAT TOURISM.
JOHN PAUL LISTOWSKI: WHY WOULD IT IN A CITY LIKE GAUSSIAN? DAVID COLLINS: IN A CITY LIKE GAUSSIAN AND PERHAPS NOT DOES IT COVER IN LAKE CITY OR THEY DON'T HAVE TOURISTS? BRIAN MAXWELL: IT'S DIFFERENT, BUT EVERY CITY TO A CERTAIN EXTENT STRUGGLES WITH THIS.
DAVID COLLINS: PARDON ME.. BUT IF WE HAD FLEXIBILITY TO USE ALL OF THESE INCOME STREAMS FOR ALL OF THESE THINGS, IT WOULD BE DIFFERENT.
WELL, WE KNOW WE HAVE THE LIBRARY FUND, WE HAVE THE INFRASTRUCTURE AND DEBT FUND, WE HAVE HOTEL TAX.
WE'VE GOT $40 MILLION OF HOTEL TAX FLOW IN THROUGH HERE AND NEXT YEAR IT'LL BE ALMOST $40 MILLION.
PROBABLY IS $40 MILLION THIS YEAR, BUT WE'RE VERY, VERY RESTRICTED ON HOW WE CAN USE THAT.
WE DO HAVE TO GET CREATIVE IN THE LAW.
BRIAN MAXWELL: WE NEED TO HAVE THAT DISCUSSION.
[OVERLAPPING] THAT MAKES A POINT.
THAT THE HOTEL TAXES IS GREATER THAN AD VALOREM TAX.
I WOULD REALLY TRULY LIKE TO RUN THE CITY, CHARGE $100 A HOUSEHOLD.
JOHN PAUL LISTOWSKI: YOU BRING UP A GREAT POINT.
THINK ABOUT THAT REALISTICALLY.
OUR PROPERTY TAXES, WHICH MOST CITIES USE AS A GENERAL FUND, THEIR MAIN INCOME STREAM OF THEIR GENERAL FUND IS LESS THAN OUR HOTEL TAX.
THAT SHOWS YOU HOW MANY PEOPLE COME INTO OUR ISLAND THAT NEED TO OFFSET THAT NUMBER.
DAVID COLLINS: WELL, BUT YEAH, IF YOU LOOK AT OUR SALES TAX NUMBERS.
JOHN PAUL LISTOWSKI: TOURISM PROVIDES A GREAT DEAL WHEN MAKING MORE SALES.
DAVID COLLINS: WE DO A LOT OF GREAT THINGS WITH HOTEL TAX THAT BRINGS US ALL.
JOHN PAUL LISTOWSKI: BUT I'M SAYING THAT AD VALOREM TAX ON HOTELS 03:27:31].
LET ME SAY THIS TOURISM HAS BEEN VERY GOOD FOR THIS.
MICHAEL BOUVIER: THAT'S A BIG CHUNK OF YOUR AD VALOREM TAX TWO GUYS.
JOHN PAUL LISTOWSKI: THAT'S WHAT AM SAYING.
BRIAN MAXWELL: YOUR SHORT-TERM RENTALS ARE PAYING TAXES, GUYS.
YOU SAID IT ELOQUENTLY WHEN YOU POINTED TO THE TWO POINTS THAT YOU MENTIONED.
I TOTALLY AGREE THAT YOU'VE GOT TO FALL SOMEWHERE BETWEEN A NO NEW REVENUE AND YOUR VAR 3.5 BECAUSE YOU DO YOUR FORECASTING FOR YOUR FUTURE EXPENSES FOR PUBLIC SERVICE OR FOR WHAT? FOR THREE, FOUR YEARS OUT.
YOU'VE ALREADY STARTED TO TAKE A LOOK AT THAT AND YOU'RE PRESENTING US A SUMMARY OF WHERE YOU THINK THINGS ARE GOING TO FALL.
THE IDEA OF DRIVING EFFICIENCY IN GOVERNMENT, I'M ALL ON BOARD WITH YOU ON THAT AND TRYING TO COME UP WITH CREATIVE WAYS TO GENERATE ADDITIONAL REVENUE STREAMS OR UTILIZATION OF THOSE EXISTING REVENUE STREAMS THAT ARE IN OTHER AREAS.
WE'VE GOT THREE DIFFERENT PARKING MANAGEMENT PROGRAMS HERE ON THE ISLAND.
THAT MEANS WE'VE GOT THREE DIFFERENT PARKING MANAGEMENT COLLECTION SYSTEMS. WE'VE GOT ONE OF THE PORT, ONE CITY PARK, ONE PARK BOARD.
DAVID FINKLEA: THAT'S A REAL SIMPLE ONE THAT I'M JUST THERE.
THERE'S A LOT OF THOSE THINGS THAT WE CAN DO TO DRIVE EFFICIENCY IN GOVERNMENT.
I'D LIKE TO JUST FOLLOW UP ON THAT.
BRIAN MAXWELL: THANK YOU, DAVID.
JOHN PAUL LISTOWSKI: DAVID, WHY DO YOU SAY THAT YOU THINK THAT NUMBER SHOULD BE SOMEWHERE IN-BETWEEN THE NO NEW REVENUE RATE IN THAT PERIOD.
DAVID FINKLEA: BECAUSE I'M TRUSTING THE SMARTEST PERSON IN THE ROOM RELATED TO FINANCE AS IT RELATES TO LOOKING AT YOUR FUTURE EXPENDITURES? WELL, HOLD ON.
THEY'VE ALREADY TAKEN A LOOK AT WHAT THE FUTURE EXPENDITURES ARE FOR DOING A TWO, THREE TO FOUR YEARS, A FORECAST FOR OUR PUBLIC SERVICE AND WHICH IS THE BIGGEST BUCKET.
IF THEY'RE TAKING WHATEVER MONTE CARLO ANALYSIS YOU'RE TRYING TO DO.
THEN TRY TO MATCH IT UP WITH WHERE WE'RE HEADED AS A CITY AND THE SERVICES THAT WERE SUPPOSED TO PROVIDE TO OUR CITIZENS, TO OUR RESIDENCES, AND BALANCE THAT AGAINST THE REVENUE STREAM THAT HAS BEEN PROVIDED BOTH BY AD VALOREM TAXES AND PROPERTY TAXES, THEN THIS IS VERY REASONABLE.
THE OTHER THING I LIKE IS THAT THEY'RE VERY CLOSELY BALANCING THE ENDING FUND BALANCE WITH 100 AND DAY FUND BALANCE REQUIREMENT, WHICH IS A VERY APPROPRIATE THING TO DO AT THIS POINT.
JOHN PAUL LISTOWSKI: YOU'RE BASING THAT ASSUMPTION THAT'S A GOOD RATE BASED ON
[03:30:05]
JUST SOME FINANCIAL INFORMATION THAT WE'VE RECEIVED, WHICH IS GREAT, DOING A GREAT JOB.BUT WHERE DOES IT COME INTO PLAY THAT NUMBER MIGHT NOT BE BALANCED CORRECTLY IN THE PROPERTY TAXPAYERS AND THE CITIZENS OF DALLAS AND THEN THE TOURIST? THAT'S WHAT I WOULD LIKE TO SEE.
SHOW ME THE DATA THAT SAYS WE NEED A $77,000,000 BUDGET IN OUR INCOME STREAMS ARE MATCHED APPROPRIATELY BETWEEN OUR RESIDENTS AND OUR TOURS.
BECAUSE I PERSONALLY DON'T THINK THEY ARE.
I THINK THAT BALANCE THE WEIGHT FALLS ON OUR CITIZENS AND OUR PROPERTY OWNERS THAN OUR TOURISTS.
I THINK OUR TOURISTS ARE GETTING OFF WHITE.
DAVID FINKLEA: THAT'S ABSOLUTELY RIGHT.
I DO NOT DISAGREE WITH YOU AND THAT'S WHY I'VE COMMENTED ABOUT THE WHOLE IDEA OF LOOKING AT OTHER EXISTING REVENUE STREAMS WHERE WE HAVE, FOR EXAMPLE, WE'VE ALL POINTED TO IT TO TRY TO FIND WAYS THAT WE CAN HELP TO OFFSET THOSE COSTS.
I JUST THINK THAT AS WE'VE GOT TO START THAT PROCESS, THAT YOU SHOULDN'T START OFF IN THE WHOLE BASED UPON THE FUTURE FORECASTS THAT WE'VE GOT.
IT'S A GOOD GOAL FOR US TO MOVE FORWARD WITH AN OBJECT.
JOHN PAUL LISTOWSKI: ON THE SIX YEAR, FIVE YEARS THAT I'VE SET HERE AND PUSH THIS ISSUE OF NO NEW REVENUE RATE.
I STILL REALLY HAVEN'T SEEN THAT DATA THAT SHOWS WE ARE DOING THIS CORRECTLY.
FINANCIALLY WE ARE, WE'RE BALANCING OUR BUDGET AND WE'RE DOING THE THINGS PROPERLY TO MAKE SURE THAT WE'RE PROVIDING THE SERVICES THAT WE NEED.
BUT MY WHOLE POINT HERE IS TO MAKE SURE THAT OUR CITIZENS ARE BEING TREATED FAIRLY.
THAT INFORMATION I HAVEN'T SEEN YET.
BRIAN MAXWELL: I DON'T KNOW THAT WE'RE THE ONES TO TELL YOU THAT BECAUSE A LOT OF THAT IS POLICY DRIVEN.
YOU GUYS RAISE YOUR HANDS [OVERLAPPING].
WE'RE DOING EVERYTHING WE LEGALLY CAN HAVE IN THE AUSPICES OF WHAT WE THINK.
JOHN PAUL LISTOWSKI: I THINK WE ALL DOING A GREAT JOB.
[OVERLAPPING] WHAT DO WE NEED TO DO TO GET THOSE THAT INFORMATION.
DAVID FINKLEA: UPHELD POLICY GOAL WOULD BE TO LOWER OR TO BETTER BALANCE.
YOU TAKE A LOOK AT HISTORIC WEEKEND PAUL, HISTORIC NUMBERS RELATED TO PROPERTY TAX AND AD VALOREM TAXES AND SALES TAX AND WHERE THEY'RE COMING FROM HISTORICALLY, AND WHERE THEY'RE BEING GENERATED EITHER BY RESIDENCES OR BY TOURISM.
THEN TAKE A LOOK AT WHAT THAT TREND LOOKS LIKE AND SAY, HEY, MAYBE A POLICY GOAL WOULD BE TO TRY TO MAYBE TAKE MORE BENEFIT FOR OUR RESIDENCES.
WELL, I JUST THROWING IT OUT THERE.
BRIAN MAXWELL: WE HAD DAVID SMITH TALK TO US ABOUT THE LONE STAR MOTORCYCLE RALLY.
THAT BRINGS IN THE AMOUNT OF MONEY THAT THAT BRINGS IN NOT ONLY FOR THE CITY, BUT THE ENTIRE COUNTY OF GALVESTON IS IMPRESSIVE.
I DON'T KNOW PERCENTAGE-WISE HOW MUCH OF OUR SALES TAX COMES FROM TOURISM RELATED ACTIVITIES.
MARIE ROBB: IT'S NOT 50/50 I PUT THEIR NUMBERS.
BRIAN MAXWELL: BUT IF YOU LOOK AT IT, NOT ONLY THE PRIMARY BUT THE SECONDARY AND TERTIARY BENEFITS THAT TOURISM BRINGS HERE.
BUT WHO KNOWS? I DON'T KNOW THAT FOR A FACT.
MIKE LOFTIN: IN A SHEER GROSS WAY, THAT IF YOU LOOK AT TOURIST SEASON IS BEGINNING APRIL 1 AND ENDING SEPTEMBER 30TH, YOU'D COLLECT 55 PERCENT OF YOUR SALES TAX DURING THAT 6TH MONTH PERIOD OF TIME AND 65 PERCENT OF YOUR HOTEL TAX.
ONE COULD ARGUE THERE'S A 10 PERCENT DIFFERENCE ON SALES TAX.
BRIAN MAXWELL: CRAIG, REMEMBER WHERE THE SHIFT, WHEN YOU HAVE MORE VISITORS STAYING IN SHORT-TERM RENTALS, IT SHIFTS THE DYNAMIC.
PEOPLE THAT SENT SHORT-TERM RENTALS ARE NOT NECESSARILY PATRONIZING YOUR RESTAURANTS.
YOU KEEP IN MIND, MOST OF THE GROCERIES YOU BUY, EVEN IF YOU BUY GROCERIES HERE, UNLESS YOU'RE BUYING A LOT OF ALCOHOLS STEP, IT'S NOT TAXABLE.
YOU'RE NOT GETTING THE BENEFIT OF THOSE VISITORS AND SALES TAX, SOME COULD ARGUE, COULD BE AS MUCH AS 50 PERCENT.
I DON'T THINK IT IS 50 PERCENT, I REALLY DON'T.
MARIE ROBB: FIFTY SEVEN PERCENT OF THE HOT TAX NOW, IT'S SHORT TERM RENTALS.
BRIAN MAXWELL: I KNOW, THE CHEESE IS MOVING A LITTLE BIT HERE GUYS.
BRIAN MAXWELL: COUNCIL, LET'S KIND OF, IF YOU WOULDN'T MIND.
LET'S WRAP OUR THOUGHTS UP, MIKE.
MICHAEL BOUVIER: I'LL GIVE OUT PASS [OVERLAPPING] THE COMMENT, MR. BUCKLAND.
I HOPE YOU'RE MOVING FORWARD WITH THE IDEA OF TRYING TO DETERMINE WHAT A TOURIST COSTS? BRIAN MAXWELL: YES, SIR.
DAVID COLLINS: THAT'S THAT'S GOING TO BE A GOOD NUMBER TO HAVE ONE.
[03:35:01]
DAVID FINKLEA: YEAH, I WOULD AGREE.BRIAN MAXWELL: NOW, WE'RE JUST TRYING TO DEFINE THE AVERAGE TOURISTS.
[LAUGHTER] GLAD TO HAVE YOU HERE.
BRIAN MAXWELL: CAN I JUST TAKE A MOMENT TO THANK, HOW MUCH I LOVED MIKE, BUT I WANT TO THANK SHEILA.
SHE HAS DONE A FANTASTIC JOB WITH THAT.
SHE AND DEBBI PIERCE ARE THE BACKBONE OF WHAT THIS IS.
FEMALE_2: ABSOLUTELY WOULD BE NOT POSSIBLE WITHOUT DEBBI.
BRIAN MAXWELL: THEY ARE THE BEST IN, DEBBI DOESN'T LIKE TO JUST DO NOT BE SITTING AT THE TABLE.
SHEILA IS TAKING THE BULLET, BUT THEY HAVE DONE A FANTASTIC JOB.
I'M SO EXCITED TO HAVE SHEILA ON OUR TEAM.
BRIAN MAXWELL: WELL, AND SOMETIMES, THE BEST COMPANY IN JUNE, GET OF A LEADER IS SOMEBODY THAT BRINGS FORWARD SOMEBODY THAT CAN STEP INTO THEIR PLACE AT SOME POINT IN TIME IN THE FUTURE WITHOUT MISSING A BEAT.
MIKE, WE HOPE YOU'RE HERE FOR THE NEXT 15 YEARS, BUT YOU BROUGHT TO US, [LAUGHTER] IT'S A GOOD REPLACEMENT.
DAVID FINKLEA: THANK YOU, MIKE.
BRIAN MAXWELL: THANK YOU MIKE VERY MUCH, IN SPEAKING A SEGUE INTO OUR PARTNER OR
[3.E. Update Of Activities At The Port Of Galveston (Robb/Listowski - 15 Min)]
[3.F. Discussion Of The Port Of Galveston’s Proposed Bond Offering (Brown/R. Rees - 20 Min)]
BRINGING IN MORE REVENUE.LET'S READ ITEM 3E AND 3F, PLEASE DO NOW.
JANELLE WILLIAMS: 3E UPDATE OF ACTIVITIES AT THE PORT OF GALVESTON, AND THE 3F DISCUSSION OF THE PORT OF GALVESTONÂS PROPOSED BOND OFFERING.
BRIAN MAXWELL: RODGER, COME ON FORWARD AND BRING WHOEVER YOU WANT TO BRING.
WE HAVE EXTRA CHAIRS HERE, WHOEVER ELSE WHO WOULD LIKE TO COME FORWARD? MARK, YOU COMING UP? I SEE VIC BACK THERE.
BRIAN MAXWELL: DID YOU GET NEW TRUCK? RODGER REES: WHAT'S THAT? BRIAN MAXWELL: YOU GET A NEW TRUCKS? RODGER REES: YEAH, ABOUT A YEAR AGO.
BRIAN MAXWELL: I JUST WATCHED IT.
BRIAN MAXWELL: COME ON UP [OVERLAPPING].
JOHN PAUL LISTOWSKI: NO, WE CAN'T SEE YOU.
[OVERLAPPING] HOW ARE YOU DOING? BRIAN MAXWELL: IT FEELS MORE COMFORTABLE? DAVID COLLINS: NO.
RODGER REES: NICE TO SEE YOU GUYS.
[OVERLAPPING] HAVE BROUGHT DAESH WITH YOU.
BRIAN MAXWELL: COUNCIL, WE HAVE INTRODUCED BOTH ITEM E AND F, ONE FOR AN UPDATE ON THE ACTIVITIES OF THE PORT, AND THEN THE OTHER ONE ON THEIR PROPOSED BOND OFFERING, THEY'RE BROUGHT TO US.
THIS IS A LITTLE BIT OF INFORMATION THAT WE PUT TOGETHER EVERY YEAR THAT TALKS ABOUT WHAT WE'RE DOING AS A PORT AND OUR DIFFERENT REVENUE SOURCES.
LOTS OF TIMES [BACKGROUND] PEOPLE DON'T REALIZE WHAT THE PORT IS, AND WHAT THE SIZE OF IT IS, AND WHAT WE HAVE IN TERMS OF ASSETS.
WE PUT TOGETHER SOME OF MARKETING PIECE EVERY YEAR THAT GIVES THAT INFORMATION IF THERE ARE ANY TECHNICAL QUESTIONS ABOUT THE PORT.
JUST STARTING OUT QUICKLY, I KNOW I'VE ABOUT 15 MINUTES OR SO HERE.
I'M JUST TALKING ABOUT THE PORT IN GENERAL.
OBVIOUSLY, THE CRUISE BUSINESS IS DRIVING ALMOST ALL THE REVENUES TO THE PORT.
OUR CRUISE SHIPS ARE GOING OUT OF HERE FULL.
I WAS LOOKING YESTERDAY, YOU CAN'T EVEN GET A CABIN ON THE CORRIDOR FOR THE REST OF THE YEAR.
THAT'S EQUATING TO REVENUES FOR US, WE BUDGETED ABOUT 58 MILLION IN REVENUES FOR THE PORT.
I THINK WE SHOULD SURPASS THAT THIS YEAR.
BUT TO MAKE A LONG STORY SHORT, OUR SHIPS ARE UP.
WE'VE GOT OVER 30 MORE CRUISE SHIPS THIS YEAR THAN WE HAD LAST YEAR.
WE'RE HANDLING THAT PRETTY WELL.
WITH THE NEW CRUISE TERMINAL, OBVIOUSLY, I THINK MOST OF YOU SHOULD BE SEEING THAT WE'RE NOT ADDING A LOT TO THE TRAFFIC.
WE FEEL THAT WE'VE PUT PROCEDURES IN PLACE TO HANDLE THAT.
FROM WHAT WE'RE HEARING FROM OUR CRUISE CUSTOMERS, IT'S WORKING.
FROM THAT STANDPOINT, I DON'T WANT TO TALK JUST STRICTLY ABOUT CRUISES, BUT YOU KNOW, WE'RE IN THE CRUISE BUSINESS, WE'RE IN SOME COMMERCIAL BUSINESSES AND WE'RE ALSO IN THE CARGO BUSINESS.
THE ISSUE WE HAVE RIGHT NOW HAS ALWAYS BEEN INFRASTRUCTURE.
THE CRUISE BUSINESS SUPPORTS ITS OWN INFRASTRUCTURE.
WE'LL TALK ABOUT A LITTLE BIT IN THE BOND BUSINESS WHEN WE TALK ABOUT THE BONDS, OUR DEBT SERVICE COSTS ON THE BONDS ARE REIMBURSED BY THE CRUISE LINES, 85 PERCENT OF IT IS REIMBURSED BY THE CRUISE LINES.
IT'S NOT A SITUATION WHERE IT COMES OUT OF OUR OWN REVENUES.
ABOUT 15 PERCENT OF IT OBVIOUSLY COMES OUT OF OUR OWN REVENUES AND THE CARGO BUSINESS.
WHEN YOU TAKE A LOOK AT OUR CARGO, WE'RE REALLY SMALL.
[03:40:04]
WHEN YOU TAKE A LOOK AT OUR FOOTPRINT FROM A CARGO STANDPOINT, EXCLUDING LAND THAT DOESN'T BELONG TO US, WE REALLY TECHNICALLY HAVE ABOUT 45 ACRES ON THE WEST END.IF YOU LOOK AT THESE MAPS, YOU'LL SEE THE TRIANGLE ON THE WEST END OF THE PORT, THAT'S NOT OUR PROPERTY.
WE PAY A MONTHLY RENTAL ON THAT FOR USE.
AS WE MOVE FORWARD AND TALK ABOUT POTENTIAL SOLUTIONS TO HOW WE CONTINUE TO BUILD THE CARGO BUSINESS, WE CAN INCLUDE THAT IN THERE.
THIS PROPERTY BELONGS TO THE UNION PACIFIC, AND LIKE I SAID, WE PAY A MONTHLY RENT FOR THAT.
THEY'RE NOT INTERESTED IN GIVING US ANY LONG-TERM LEASES ON THAT LAND.
IT'S A SIGNIFICANT PIECE OF LAND.
WE'VE BEEN TALKING AND WE'RE PROBABLY THE NEXT COUPLE OF MONTHS, GO OUT WITH AN INDICATION OF INTEREST TO LOOK AT CERTAIN MANAGEMENT OPPORTUNITIES WITH OUR CUSTOMERS TO MANAGE THAT WEST END FOR US.
WE DID ABOUT 4 MILLION TONS OF BUSINESS ON THE WEST END.
THE TOTAL PORT ONLY DOES ABOUT 10 MILLION.
10 MILLION IS WHAT PROBABLY HOUSTON DOES IN A WEEK.
WHEN YOU LOOK AT EVERYTHING AND YOU LOOK IN THE SCHEME OF THINGS, CARGO IS NOT GENERATING MUCH REVENUE FOR US.
WE HAVE ABOUT $8 MILLION IN REVENUES LAST YEAR, AND WHEN YOU HAVE 250, AND WE'LL TALK ABOUT THE BONDS, THE COSTS ARE JUST ESCALATING EXPONENTIALLY.
WE ARE A MINIMUM, AND I USE THIS NUMBER, $250 MILLION WORTH OF INFRASTRUCTURE NEEDS ON THE WEST END, FILLING THREE SLIPS, AND THEN IF YOU HAVE A CHANCE AND I KNOW SOME OF YOU WHO HAVE BEEN OUT THERE AND LOOKED AT THIS, YOU'LL SEE THAT OUR BOATS OUT THERE ARE IN BAD SHAPE.
OUR STAFF WORKS VERY HARD TO FIGURE OUT HOW WE CAN DOCK A SHIP OUT THERE AND KEEP IT NEXT TO THE DOCK.
THEN LOTS OF TIMES WE'LL BRING IN RAW EQUIPMENT THAT'S 75 TONS OR 100 TONS.
WHEN YOU'RE GOING OUT THERE AND YOU'RE PUTTING METAL PLATES DOWN AND YOU'RE DOING ENGINEERING TO FIGURE OUT HOW I CAN UNLOAD THIS AND KEEP IT ON THE DOCKS TILL IT GETS MOVED OUT.
WE RIGHT NOW HAVE EVERYTHING SCHEDULED.
OUR LEASES ARE ALL SCHEDULED TO EXPIRE IN SEPTEMBER 2024.
WE WE'VE DONE THIS PURPOSELY BECAUSE WE'RE LOOKING TO HAVE SOMEBODY COME IN AS A PUBLIC-PRIVATE PARTNERSHIP TO LOOK AT MANAGING THE WEST END FOR THE PORT AND CREATING SOME PARTNERSHIP THAT WILL GENERATE.
THE COMPANIES WE TALKED TO, STEVEDORE COMPANIES, CARRIERS, WHICH IS THE SITUATION WE'RE IN.
RIGHT NOW, WE HAVE A CARRIER OUT THERE THAT HAS A LEASE ON THE MAJORITY OF THAT PROPERTY WE HAVE OUT THERE.
IF YOU CAN BEGIN TO UNDERSTAND BUSINESS, YOU THINK, WELL, A CARRIER, HIS OWN INTEREST IS DURING HIS OWN PRODUCT IN.
THERE'S NO UPSIDE TO THAT FOR US AT THIS STAGE.
WHAT WE'VE DONE IS WE'VE MODELED THAT WEST END TO HAVE ALL THE LEASES EXPIRE AT THE SAME TIME SO THAT WE CAN IN FACT DEVELOP A RELATIONSHIP WITH SOMEBODY THAT CAN START FRESH NEW LEASES.
WHEN I FIRST CAME HERE, WE WEREN'T EVEN LEASING ANYTHING.
WE WERE RELYING STRICTLY ON CARGO COMING OVER THE DOCKS AND WHAT OUR REVENUE SOURCES WERE FROM THAT.
SINCE I'VE BEEN HERE AND SINCE WE'VE EMPOWERED OUR STAFF, WHAT WE NOW HAVE IS EVERYTHING UNDER LEASE AND WE'RE APPROACHING $45,000 AN ACRE.
WE HAD A FEW TENANT LEASES OUT HERE THAT WE'RE AVERAGING SOMEWHERE AROUND 18, 19, 20,000 AN ACRE.
YOU CAN SEE WE'VE DOUBLED THE AMOUNT OR VALUE.
WE'RE MOVING TOWARDS $50,000 AN ACRE FOR THAT LAND.
THE BIGGEST PROBLEM WE HAVE IS THE AMOUNT OF LAND THAT WE HAVE.
I TOURED FREE PORT I GUESS IT'S BEEN ABOUT THREE WEEKS AGO NOW, AND IT'S AMAZING THE AMOUNT OF LAND THEY HAVE.
THEY HAVE 3,000 ACRES OF UNUSED PORT LAND THAT CAN BE DEVELOPED.
OUR COMPETITION IS PEOPLE LIKE FREE PORT THAT HAVE UNLIMITED LAND BECAUSE THEY
[03:45:03]
HAVE THAT MUCH UPSIDE POTENTIAL, THEY'RE ABLE TO GET A LOT MORE FEDERAL GRANTS BECAUSE THEIR NUMBERS LOOK A LOT BETTER.FROM THE WEST END, EVER SINCE I CAME HERE, WHAT MY GOAL WAS IS TO CONTINUE TO LEVERAGE THE CRUISE BUSINESS, CONTINUE TO BUILD THE CRUISE BUSINESS SO THAT THE CASH FLOW GETS TO A LEVEL THAT WE CAN ACTUALLY LEVERAGE THAT CASH FLOW.
IF YOU LOOK AT PORTS AROUND THE COUNTRY, ALMOST EVERY PORT, WHAT THEY DO IS THEY GENERATE CASH FLOW, THEY BUILD RESERVES, AND THEN THEY BORROW MONEY.
THEY TAKE THEM BECAUSE ONE SLIP FILL WITH A PEER ON THE END OF IT IS $25,30 MILLION.
IT'S UNFORTUNATE, BUT THE BIGGEST COST OF THAT IS THE FILL.
IT'S WHAT IT COSTS TO FILL DIRT, WHAT YOU GOT TO PAY FOR DIRT TO FILL THOSE SLIPS.
THAT'S THE BIGGEST COST OF THAT OPERATION.
WE CONTINUE EVERY YEAR FEDERALLY AND STATE TO APPLY FOR GRANT MONEY IN THE WEST END.
THE PROBLEM IS THAT THE NUMBERS FROM THE ECONOMIC ANALYSIS DON'T REALLY JUSTIFY ANYTHING BIG.
THE BIGGEST USER OF THE PORT ON THE WEST END IS TEXAS INTERNATIONAL TERMINALS.
THEY'RE THE ONES THAT BRING MOST OF THE CARGO THROUGH THE PORT.
THEY'RE THE REASON I WOULD SAY TO YOU THAT WE'RE ABLE TO BE DREDGED DOWN TO 46 FEET BECAUSE OF THAT BUSINESS.
IT'S NOT THE CRUISE, THE CRUISE BUSINESS NEEDS 35, 38 FEET TO OPERATE, AND THEIR BIGGEST SHIPS.
IT'S HARD TO BELIEVE BECAUSE THE BIGGER SHIP, THEY GET WIDER, THEY SPREAD THE WEIGHT MORE ON THE WATER TOP AND SO THEY'RE ABLE TO OPERATE THAT WAY.
BUT THE BIGGEST THING WE HAVE RIGHT NOW IS THE BIGGEST AMOUNT OF CARGO IS LIQUID PETROLEUM CARGO.
IT COMES FROM TEXAS INTERNATIONAL AND ALSO COMES A LITTLE BIT FROM PELICAN ISLAND TERMINALS UP THERE.
THEY DO STORAGE AND MOVE IN AND OUT.
DAVID COLLINS: WHEN YOU SAY THE AREA OF LISA 24, YOU'RE TALKING ABOUT OUT HERE? RODGER REES: I'M TALKING ABOUT THERE, YES.
DAVID COLLINS: YOU USE CTI OUT HERE, RIGHT? RODGER REES: THAT'S NOT US.
DAVID COLLINS: THIS TRIANGLE RIGHT HERE IS LEASED.
RODGER REES: THAT'S ALL UNION PACIFIC LAND.
DAVID COLLINS: THAT'S ALL WE'RE TALKING ABOUT.
ARE YOU TALKING ABOUT [OVERLAPPING] WHAT WE'RE TALKING ABOUT IS EVERYTHING ELSE.
DAVID COLLINS: [OVERLAPPING] YOU'RE SAYING THE LEASE IS EXPIRED.
EXPIRED THE LEASES THAT ARE IN THIS AREA HERE, ALL THE WAY OVER EXCEPT HERE WERE CHS IS THERE AROUND UNTIL 36.
RODGER REES: THIRTY SIX, I THINK IT IS THERE.
DAVID COLLINS: BUT ESSENTIALLY IT'S MOST OF OUR OWNED LAND WEST OF THE GRAIN ELEVATORS.
RODGER REES: YES, WITH EXCEPTION OF THE UNION PACIFIC PEACE.
RODGER REES: RIGHT NOW WE HAVE ABOUT 75 ACRES THAT WE BRING CARGO IN ON.
AND ABOUT A LITTLE MORE THAN HALF OF THAT IS LEASED.
WHEN YOU'VE GONE DOWN HARBOR SIDE DRIVE, YOU'VE SEEN ON THE SOUTH SIDE DRIVE WHERE ALL THAT LAND THERE HAS BEEN CRUSHED WITH CRUSH ROCK AND YOU SEE A LOT OF THE WIND TOWER IS GOING THROUGH THEIR ESSER LAND THAT'S LEASED FROM NOT UNION PACIFIC BUT BASSF.
[BACKGROUND] WHAT WE GET FROM THAT IS EVERYTHING THAT COMES ACROSS THE DOCS.
WE GET PAID FOR THE PRODUCT THAT COMES OVER THE DOCKS, AND LUCKILY, IT'S HEAVY PRODUCT.
WE GET PAID PRETTY WELL FOR THE WIND TOWERS THAT COME IN SOUTH OF HARBOR SIDE DRIVE.
JUST A SMALL NOTE, I'M TALKING TO TEXTILE TRYING TO FIGURE OUT HOW WE CAN RAISE A PORTION OF THAT PART OF HARBOR SIDE DRIVE SO THAT WE CAN TURN THE WEST END INTO MORE LAND SOUTH OF HARBOR SIDE DRIVE AND STILL SERVES IT.
IT'S VERY HARD FOR A STEVEDORE, SOMEBODY WHO'S HANDING CARGO TO BRING CARGO OVER HARBOR SIDE DRIVE, THERE'S JUST TOO MUCH TRAFFIC.
ONE OF THE THINGS WE'VE BEEN TALKING ABOUT, AND RAIL IS THE SAME WAY, COULD WE RAISE UP HARBOR SIDE DRIVE SO THAT WE CAN HAVE THE MOVEMENT OF GOODS UNDERNEATH HARBOR SIDE DRIVE AND THEN OPEN OURSELVES UP FOR WHATEVER LAND IS AVAILABLE.
WE DON'T OWN THAT LAND EITHER.
I MEAN, A LOT OF THAT LAND IS OWNED BY OTHER PEOPLE, BUT THAT'S OKAY BECAUSE WE'LL GET PAID FOR WHAT GOES OVER THE DOCKS.
DAVID COLLINS: WHEN YOU SAY YOUR LEASE IS EXPIRING IN 24, YOU'RE LOOKING FOR A PRIVATE ENTITY TO MAYBE MANAGE.
[OVERLAPPING] SOMEBODY'S GOING TO DO THE REPAIR, THE FILL, ALL THAT STUFF? RODGER REES: [OVERLAPPING] WE'RE LOOKING FOR THAT PERSON.
[03:50:03]
WE ARE LOOKING FOR THAT PERSON BECAUSE THE BOTTOM LINE IS AND WE'VE BEEN HAVING CONVERSATIONS WITH OUR EXISTING CUSTOMERS, AND THEY ALL COME UP WITH THE SAME ISSUE IS IF WE TAKE THE EXISTING REVENUES YOU HAVE AND YOU'RE TELLING US IS A $250 MILLION INVESTMENT, IT DOESN'T WORK.TO BRING IN A THIRD PARTY TO RUN THE WEST END OR TO MANAGE THE WEST END, YOU'RE GOING TO GIVE UP EVERYTHING.
BECAUSE THEY'RE GOING TO START LOOKING AT THEM, THE ECONOMIC MODELS AND THE RENTAL INCOME BECAUSE WE CAN RUN ALL THAT NOW.
WE CAN CONTINUE TO RUN ALL THAT.
I'M NOT SAYING THAT WE WOULDN'T CONTINUE TO RENT IT AFTER ALL THESE LEASES RUN OUT.
BUT WHAT WE HAD TO DO IS WE HAVE TO CONSOLIDATE IT SO WE HAVE A BIG PIECE OF LAND THAT IS MARKETABLE.
OBVIOUSLY THE PIECE ON PELICAN ISLAND IS WIDE-OPEN, IS HUGE.
I HAVE HEARD YOUR CONVERSATIONS.
I HAVE PROBABLY MONTHLY CONVERSATIONS WITH PORT OF HOUSTON ABOUT PELICAN ISLAND.
BRIAN MAXWELL: MARK, COULD YOU SHOW THEM WHERE THAT PIECE OF LAND IS.
MARTIN MURCHISON: THERE'S A PIECE IN HERE THAT BELONGS TO HOUSTON, BUT THIS PART IS THE PORTS.
THIS PART IS THE POSTERIOR, THIS IS GULF COPPER AND THIS IS THE PORTS SCHOOL.
DAVID COLLINS: I HAVE JUST ONE ORDER MR. CHAIRMAN, IS THAT PORTLAND OR CITY LAND? WHICH CITY LAND? RODGER REES: IT'S ALL CITY LAND.
[OVERLAPPING] IT'S PART OF THE LAND THAT WE MANAGE.
MARTIN MURCHISON: IT'S PART OF THE LAND THAT'S MANAGED BY THE PORT.
JOHN PAUL LISTOWSKI: YOU BRING GOOD POINT.
I WOULD LIKE TO SEE MORE INFORMATION IN THE FEATURE ON THAT [OVERLAPPING] MEETS AND BOUNDS ON WHO OWNS WHAT AND WHO MANAGES WHAT.
RODGER REES: WE PAID MONEY FIRST.
[OVERLAPPING] WE PAID SOME MONEY FOR THAT [OVERLAPPING] WHEN THAT LAND WAS GIVEN TO THE PORT.
JOHN PAUL LISTOWSKI: I THINK WE NEED TO STRESS TO STAFF THAT WE NEED THAT.
BRIAN MAXWELL: IT'S IN LET ME MAKE SURE JOHN DID.
YOU'RE INCLUDING THAT LAND, IT'S OWNED BY PORT OF HOUSTON TOO; IS THAT CORRECT? JOHN PAUL LISTOWSKI: NO.
BRIAN MAXWELL: JUST OWNED BY THE CITY? JOHN PAUL LISTOWSKI: WHAT'S OWNED BY THE CITY AND WHAT IS OWNED BY THE CITY AND MANAGED BY THE PORT.
RODGER REES: WE PAID SOME MONEY FOR THAT LAND.
THAT LAND, THAT'S US ON THE WATERFRONT.
WHEN OWNERSHIP OF THAT LAND WAS TRANSFERRED TO THE PORT THERE WAS SOME CASH THAT WE PUT UP TO THAT.
JOHN PAUL LISTOWSKI: DOES THE PORT OWN LAND OUTSIDE OF THE CITY? RODGER REES: NO.
JOHN PAUL LISTOWSKI: SO IT'S ALL CITY-OWNED LAND MANAGED BY THE PORT? RODGER REES: EXACTLY.
BRIAN MAXWELL: THAT IS CORRECT.
RODGER, BEFORE WE GO ON ANY FURTHER AND I KNOW TONY, I'M SORRY, I SHOULD HAVE DONE IT.
WOULD YOU INTRODUCE THE INDIVIDUALS THAT ARE HERE FOR THE 03:53:04] RICHARD ACOSTA: MY NAME IS RICHARD ACOSTA WITH RBC CAPITAL MARKETS.
WE ARE THE PORTS FINANCIAL ADVISOR.
WE'VE BEEN WORKING WITH THE PORT AND HELPING THEM ADVISE ON THEIR BONDS AND ISSUE IN THE CAPITAL PLAN.
RODGER REES: WE HAVE A CHAIR FOR HARRY.
BRIAN MAXWELL: LET'S GET A CHAIR FOR HARRY UP HERE.
MARTIN MURCHISON: [BACKGROUND] I'M MARTIN MURCHISON.
HARRY MAXWELL: I'M HARRY MAXWELL, I'M CHAIRMAN BOARD OF TRUSTEES.
VICTOR PIERSON: PIERSON, VICE CHAIRMAN.
I'M HANDING OFF THE BATON TO HARRY NOW.
BRIAN MAXWELL: [LAUGHTER] GO AHEAD, YOU'RE DOING A GOOD JOB.
TONY BROWN: TONY BROWN, BOARD ATTORNEY.
RODGER REES: THE PHILOSOPHY HAS BEEN THAT WE HAVE TO CONTINUE TO GROW THE PORT CRUISE BUSINESS IN ORDER TO BUILD REVENUES AND TO BUILD RESERVES TO PAY DEBT SERVICE.
PORTS ALL ACROSS THE COUNTRY THAT'S WHAT THEY'RE IN THE BUSINESS DOING, IS MAKING MONEY SO THEY CAN PAY DEBT.
I NOTICED IN YOUR BUDGET, YOU KNOW WHAT I MEAN, THIS IS VERY SIMILAR TO WHAT YOU'RE DOING.
I MEAN, YOU'RE TAKING TAX DOLLARS AND LEVERAGING IT TO BE ABLE TO DO THINGS THAT NEED TO BE DONE NOW THAT WILL BENEFIT THE FUTURE, SO YOU'RE PAYING THE DEBT SERVICE FOR THE FUTURE ALSO.
THIS IS REALLY WHAT WE'RE DOING WITH THE CRUISE BUSINESS.
RIGHT NOW WE HAVE THREE TERMINALS, TWO OF WHICH ARE WHOLLY OWNED BY THE PORT, AND THE THIRD ONE, WHICH IS ON LAND LEASE TO ROYAL CARIBBEAN.
I WOULD JUST GIVE YOU THE FINANCIAL MODELS OF THOSE.
I MEAN, ON PEER 10, WHICH IS THE NEWEST CRUISE TERMINAL, WE RECEIVE $4 MILLION A YEAR IN LAND LEASE, PLUS WE HAVE 2,100 PARKING SPACES ON THIS TERMINAL WHICH WE GENERATE.
[03:55:02]
AND THIS IS WHERE THE REVENUES COME FROM FOR THAT PARTICULAR TERMINAL.THE OTHER TWO TERMINALS, WE OWN THE LAND.
WE DON'T HAVE ANY LAND LEASE, BUT WE GET ALL THE SERVICES THAT THE CRUISE COMPANIES PAY US.
THEY PASS A TARIFF ON A PER PASSENGER BASIS, AND THEN THEY ALSO PAY US.
TYPICALLY THAT TARIFF IS A BUNDLED RATE BECAUSE WE WILL GO IN AND SAY, THEY SAY, WE NEED TO KNOW ONE PRICE THAT WE CAN CHARGE THE CUSTOMER FOR THOSE SERVICES.
WHAT WE INCLUDE IN THOSE SERVICES IS WARPHAGE, WHICH IS THE FEE FOR GOING ACROSS THE GOING ACROSS THE THE BERTH, AND THEN ALSO VARIOUS OTHER THINGS, SECURITY FEES BECAUSE WE HAVE OUR OWN POLICE DEPARTMENT AND WE HAVE TO RECOVER A LOT OF COST THAT WE INCUR IN CRUISE BUSINESS.
IF YOU'VE EVER SEEN ANY OF OUR MEETINGS, YOU SEE HOW MANY CALLS AND HOW MUCH LAW ENFORCEMENT IS NEEDED EVERY TIME A CRUISE SHIP COMES IN, EVERY TIME THE CRUISE SHIP GOES OUT.
EVERY TIME A CARGO SHIP COMES IN, WE HAVE TO HAVE A POLICE OFFICER THERE BECAUSE MOST OF THESE CARGO SHIPS HAVE FOREIGN NATIONALS ON THEM AND SO YOU HAVE TO HAVE SECURITY AT BOTH LEVEL TO BE ABLE TO MAKE SURE NOBODY'S GETTING OFF THOSE SHIPS.
WE HAVE A LOT OF RESPONSIBILITIES AND WE'RE JUST FINDING WITH THE LEGALIZATION OF MARIJUANA IN NEIGHBORING STATES, THIS IS JUST EVERYWHERE.
WE COULD SELL ALL THAT STUFF BECAUSE WE'D MAKE A LOT OF MONEY.
BUT THE BOTTOM LINE IS IS WE HAVE TO GO THROUGH ALL THAT PROCESS, SO THAT'S ANOTHER OPERATING EXPENSE WE HAVE.
WITH THAT BEING SAID, THE CRUISE BUSINESS HAS BEEN VERY GOOD TO GALVESTON.
I THINK WHAT WE'VE DONE WITH THAT NEW CRUISE TERMINAL GLOBALLY, WE ARE KNOWN AS A CRUISE PORT NOW.
WE CONTINUE TO WORK THAT, AND WHERE WE'RE LOOKING TO GO HERE IS THE BIGGEST THING WE HAD WITH CRUISE TERMINAL 28.
WE RENAMED THESE CRUISE TERMINALS TO CORRESPOND WITH THE STREETS, AND CRUISE TERMINAL 28 WHICH THE CARNIVAL TERMINAL IS THEY'RE BRINGING IN A BRAND NEW SHIP.
I DON'T KNOW IF YOU SAW IT LAST WEEK.
BRIAN MAXWELL: RODGER WHILE WE'RE TALKING ABOUT 25, LET'S GO AHEAD AND MENTION ABOUT YOUR BOND PROPOSAL.
DAVID FINKLEA: I'VE GOT SOME JUST GLOBAL QUESTIONS ABOUT THE PORT BEFORE WE DIG DOWN INTO THE BOUNDARY AROUND THEM.
RODGER, YOU MAY MENTION OF A POSSIBLE 3P PARTNERSHIP ON THE WEST END.
I JUST WANT TO ASK GIVEN PROCUREMENT POLICIES THAT ARE IN PLACE, EITHER THE CITY THAT GOVERN HERE OR THE PORT, WHAT PROCESS DO YOU ENVISION BY GOING AND TRYING TO FIND A DEVELOPER THAT YOU CAN ENGAGE AND RIDE INAPPROPRIATE SCOPE FOR DEVELOPMENT AGREEMENT TO HELP MAKE THOSE OBJECTIVE TOWN? RODGER REES: THAT'S A GOOD QUESTION BECAUSE IT'S NOT A DEVELOPER.
IT'S A COMPANY THAT'S IN THE BUSINESS OF HANDLING CARGO.
THAT'S WHAT WE WANT AS A PARTNER.
SOMEBODY WHO EVERY DAY THEIR BUSINESS IS TO GO OUT MARKET THE SERVICES HERE, BRING THE SHIPS IN.
YOU'RE LOOKING FOR STEVEDORE, THE CONSTRUCTION PART OF IT IS THAT WOULD BE A DIFFERENT TRANSACTION WHERE WE WOULD GO THROUGH THE REGULAR PROCUREMENT.
THE SAME THING WE GO THROUGH REGULAR PROCUREMENT TO LOOK AT WHO COULD POSSIBLY FILL THAT ROLE AS STEVEDORE OR A CARRIER OR SOMEBODY THAT IS IN THE BUSINESS, AND THAT'S WHY I MENTIONED EARLIER WE'RE TALKING ABOUT AN INDICATION OF INTEREST BECAUSE WE WANT TO FIND OUT WHO'S INTERESTED IN THIS BECAUSE IT'S NOT A CUT-AND-DRY TRANSACTIONS.
PLEASE COME IN, WE'LL GIVE YOU 25 PERCENT AND WE TAKE 75 PERCENT AND YOU PAY 25 PERCENT OF A NUMBER.
WE'VE SPENT OVER PROBABLY CLOSE TO MILLION-AND-A-HALF DOLLARS ON ENGINEERING COST ESTIMATION OF WHAT IS GOING TO TAKE ON THE WEST END OF THE PORT TO FILL THOSE SLIPS.
WE HAVE 100 PERCENT ENGINEERING AND CONSTRUCTION DRAWINGS ON ONE SLIP.
THE WAY I LOOK AT IT FROM A PORT IS WE NEED FREE MONEY.
BECAUSE IF YOU TRY TO MAKE THE WEST END STAND ON ITS OWN, IT WON'T DO IT.
[04:00:02]
IN TERMS OF THE DEBT, YOU'D HAVE TO GO INTO TO BUILD CONSTRUCTION.NOW, IF SOMEBODY HAS COMES IN AND WE'VE HAD PEOPLE FROM TURKEY, WE'VE HAD PEOPLE FROM CHINA COMING HERE.
WE'VE HAD PEOPLE FROM ALL THE STEVEDORES.
DAVID FINKLEA: YOU'VE JUST GOT TO PUT OUT LIKE A LETTER OF INTEREST OR AN RFQ [OVERLAPPING] WHAT YOUR OBJECTIVES ARE, AND IT DEFINES WHATEVER FINANCIAL STRUCTURE YOU MIGHT HAVE.
BUT IT WOULD STILL BE A COMPETITIVE BEST SOLUTION.
DAVID FINKLEA: ALL THE WAY DOWN THE LINE.
IS JUST A LITTLE MORE CREATIVE THAN JUST DOING LAND LEASE.
WE CAN DO THE LAND LEASE TO THE STEVEDORES.
THEY ALL WAIT IN LINE TO DO IT.
THEY ALL HAVE LEASES IN PLACE NOW, BUT WE NEED A PACKAGE AND THAT'S WHY WE'VE MADE A POINT OF VIEW.
DAVID FINKLEA: DO YOU HAVE A TIMEFRAME ON WHICH YOU MIGHT COME OUT WITH THAT LLI? RODGER REES: WE'RE THINKING THE NEXT 30-60 DAYS ON A ON A REQUEST FOR INFORMATION OR INTEREST.
DAVID FINKLEA: THANK YOU, MAYOR.
JOHN PAUL LISTOWSKI: CAN I ADD ON TO THAT? BRIAN MAXWELL: EXCUSE ME.
JOHN PAUL LISTOWSKI: SO WE'RE TALKING ABOUT THE WESTERN END OF THE PORT AND THE CARGO SIDE OF THE PORT BASICALLY.
IT DOESN'T SOUND LIKE IT'S FINANCIALLY VIABLE FOR THE PORT TO DEVELOP THAT PROPERTY.
RODGER REES: WELL, OBVIOUSLY NOT.
IN TERMS OF THE AMOUNT OF REVENUES WERE BRINGING IN THE COST, NOW, IT CAN BE DONE IN PHASES.
IF YOU USE MY NUMBER OF 250 MILLION BY THE TIME IT GETS DONE IT'S PROBABLY 300 MILLION JUST BECAUSE OF CONSTRUCTION COSTS AND WE WILL SEE THAT IN A MINUTE ON THE TERMINAL WE'RE WORKING ON RIGHT NOW.
BUT IN TERMS OF US PUTTING THAT MONEY IN THERE AND HAVING THE ABILITY TO GENERATE INCREASED REVENUES, I BELIEVE THERE'S UPSIDE.
THERE'S NO DOUBT TO ME AND THAT'S BECAUSE OF OUR LOCATION.
THAT'S WHY WE HAVE ALL THE INTEREST IS BECAUSE WE'RE SO CLOSE.
NOBODY ENJOYS DRIVING UP THE CHANNEL TO HOUSTON.
FUEL COSTS ARE HUGE AND THE TIME IT TAKES TO GET UP THERE, 3, 4 HOURS SOMETIMES GET UP THERE.
WE HAVE A GREAT LOCATION, WE JUST DON'T HAVE LAND.
JOHN PAUL LISTOWSKI: I HAVE SEEN THOSE CHALLENGES.
DOES IT SOUND LIKE IT'S REALLY FINANCIALLY VIABLE FOR THE PORT TO DEVELOP THE WEST END FOR CARGO, BUT IT SOUNDS LIKE A PRIVATE INDIVIDUAL, PRIVATE ENTITY COULD COME IN THERE AND COULD POSSIBLY BE WILLING TO INVEST THOSE INFRASTRUCTURE COSTS.
TO DO THAT, IT WOULD HAVE TO BE FINANCIALLY VIABLE FOR THEM TO DO IT.
I GUESS AT THAT POINT, IF THAT'S THE CASE, THEN WITH THE PORT WOULD BE IN IT JUST AS A LEASEHOLDER.
HARRY MAXWELL: WE'RE LANDLORD PORT NOW.
JOHN PAUL LISTOWSKI: SO NOTHING REALLY CHANGES FROM WHAT WE'RE DOING TODAY? HARRY MAXWELL: NO.
JOHN PAUL LISTOWSKI: BUT ONE THING YOU SAID THERE, THEN IT BECOMES A PRIVATE SECTOR'S RESPONSIBILITY TO DO THE CONSTRUCTION.
IT WOULD NOT BE BID OUT ON A PUBLIC BASIS.
RODGER REES: NO, IN A PERFECT WORLD, YES.
JOHN PAUL LISTOWSKI: IS THAT HAPPENED? RODGER REES: OH YEAH, THAT HAPPENED.
DAVID GREEN: JUST TO GIVE AN EXAMPLE, IF YOU DON'T MIND, FROM THE CRUISE TERMINAL.
FIRST OF ALL, THEY DO WANT THE SALES TAX EXEMPTION THAT PUBLIC ENTITIES GET AND SO THEY END UP BRINGING US IN AS PART OF THE CONSTRUCTION, AT WHICH POINT PUBLIC PROCUREMENT LAWS GO IN AND EVERYTHING FOR EXAMPLE, IT WAS DONE AT THE CRUISE TERMINAL, WAS PUBLICLY BID FOR ALL THE SUBS, ALL THE WORK.
RODGER REES: I DON'T WANT TO SAY NEVER, BECAUSE IF THE FEDERAL GOVERNMENT AND THE STATE DECIDES THAT SOMEDAY THAT, THIS NEEDS TO BE FUNDED.
WE'LL SAY THIS THE FIRST TIME EVER THE STATE LEGISLATURE ALLOCATE $200 MILLION TO THE PORT SYSTEM IN THE STATE.
THEY'VE NEVER DONE THAT BEFORE.
I SIT ON THE PORT AUTHORITY ADVISORY COMMITTEE AND WE'VE HAD $40 MILLION TO SPREAD OUT OVER A TWO-YEAR PERIOD FOREVER.
THIS YEAR THEY PUT UP 200 MILLION, SUPPOSED TO BE 600 BECAUSE EVERYBODY NEEDS THAT.
THE ALL PORTS AND IN THE STATE HAVE PUT ALL THE PROJECTS TOGETHER THROUGH THE PORT AUTHORITY COMMITTEE AND $1.6 BILLION IS WHAT IS NEEDED IN JUST INFRASTRUCTURE PROJECTS.
YOU CAN SEE 200 MILLION DOESN'T DO MUCH, BUT WE ARE IN A GOOD POSITION, I THINK THIS YEAR TO GRAB SOME OF THAT 200 MILLION.
REALLY, TO ANSWER YOUR QUESTION IS THIS, IF THE PORT CAN GET THAT KIND OF MONEY WITH 25 PERCENT MATCHES, AND THEN ALL OF A SUDDEN LEVERAGED THE 25
[04:05:04]
PERCENT.HARRY MAXWELL: I THINK WE CAN DO IT, BUT WE CAN'T DO IT AS FAST AS WE'D LIKE TO DO IT.
HONESTLY, IF YOU'RE MAKING [OVERLAPPING].
JOHN PAUL LISTOWSKI: THAT'S WHERE THE PRIVATE SECTOR COMES IN.
HARRY MAXWELL: YEAH, AND IF IT DOESN'T WORK WITH THE PRIVATE SECTOR, I THINK IT'LL STILL GET DONE, IT'LL JUST BE SLOWER.
WHEN YOU LOOK AT OUR NET INCOME, WHAT WE'VE GENERATED FROM CRUISE FIRST CARGO, ONCE WE GET THROUGH WITH OUR CRUISE BUSINESS, GET THE REVENUES UP TO WHERE THEY'RE GROWING NOW, WE'LL HAVE MONEY TO INVEST IN, BUT IT WON'T BE IMMEDIATE.
IT'S NOT GOING TO HAPPEN OVERNIGHT, BUT WE CAN DO IT.
BRIAN MAXWELL: MIKE, YOU HAD A QUESTION.
IS THAT RIGHT? MICHAEL BOUVIER: YEAH.
HAVE YOU BEEN OUT TO STEVEDORES YET? HAVE YOU SENT THEM ANYTHING OUT? RODGER REES: I WOULD SAY, WE HAVE EXISTING STEVEDORES THAT HAVE PERMITS.
EVERY STEVEDORES PERMITTED TO DO BUSINESS HERE.
WE HAVE OPEN CONVERSATIONS WITH THEM BECAUSE WE KNOW, THEY TELL US, WE CAN'T DO THIS BECAUSE OF THIS OR THE INFRASTRUCTURE IS NOT ENOUGH TO BRING THIS KIND OF BUSINESS.
WHAT WE'VE BEEN DOING IS DEVELOPING A SCOPE OF WORK THROUGH OUR EXISTING RELATIONSHIPS WITH THE STEVEDORES THAT ARE ALREADY HERE.
THEY'RE GOING TO BE THE PEOPLE THAT WANT TO CONTINUE BUSINESS HERE.
THEY'RE GOING TO BE THE COMPANIES THAT WANT TO BE THAT THIRD PARTY IN PARTNERSHIP.
MICHAEL BOUVIER: MY QUESTION WAS, YOU'VE BEEN OUT AND EXPLORED STEVEDORES ALL OVER, NOT JUST LOCAL STEVEDORES.
RODGER REES: I'M TELLING YOU WE HAVE THE MAJOR STEVEDORES HERE.
JOHN PAUL LISTOWSKI: ARE RFP OUT YET? DAVID FINKLEA: NO, THAT'S WHAT WE WERE JUST TALKING ABOUT, 30 DAYS.
RODGER REES: BUT WHAT WE'VE DONE IS WE'VE USED OUR EXISTING RELATIONSHIPS TO UNDERSTAND WHAT THE SCOPE OF WORK IS.
THAT'S REALLY WHAT I'M SAYING IF I'M ANSWERING YOUR QUESTION.
MICHAEL BOUVIER: THE OTHER QUESTION IS, ALL THIS DREDGE MATERIAL YOU CAN'T USE FOR BACKFILLING THOSE? RODGER REES: NO.
IF YOU WANT TO MAYBE OVER 30 YEARS FILLING IN THE YEAR AND YEAR [OVERLAPPING].
HARRY MAXWELL: MAYBE IT'LL COME BACK SOON OR LATER.
MICHAEL BOUVIER: YOU COULDN'T MAKE AN AGREEMENT WITH THE SCHOOL DISTRICT TO USE ALL THAT RUBBLE THAT THEY HOLD UP RODGER REES: WELL, OUR KNEES ARE TOO LATE TO THE GAME FOR THAT BECAUSE WE DON'T HAVE THAT IN PLACE.
WHAT'S THAT? VICTOR PIERSON: IT'S LT.
[LAUGHTER] [LAUGHTER] CRUISE TERMINAL 25 NOW.
BRIAN MAXWELL: IF YOU WOULD EXPAND ON WHAT YOU NEED TO DO THERE, WHY THAT IT IS, AND WHAT YOU'RE GOING TO FINANCE THERE.
RODGER REES: I'LL JUST QUICKLY, WE ARE ALSO IN NEGOTIATIONS FOR THE FOURTH CRUISE TERMINAL, WHICH YOU'VE PROBABLY HEARD.
I THINK THAT THAT MAY OR THAT NEEDS TO BE CAVEATED THAT THIS IS A BIGGER TRANSACTION POTENTIALLY.
WE BROKE THIS DOWN EARLIER BECAUSE WE HAD FINISHED CONTRACTS AND EVERYTHING IN PLACE FOR CRUISE TERMINAL 25.
I'M HOPING THAT I'M SITTING IN THE SAME CHAIR IN THREE OR FOUR MONTHS WITH A PROPOSAL FOR A NEW CRUISE TERMINAL WHERE DOUMANI IS.
DOUMANI HAS SIGNED A LEASE IN REPORT TO MOVE THEIR OPERATIONS DOWN THERE.
WE WILL HAVE THAT COMING TO US SOMETIME IN EARLY '24 FOR USAGE.
SO GOING TO 25 CARNIVAL WAS THE ORIGINAL CRUISE LINES WAS IN HERE.
THEY LOANED TO PORT THE MONEY TO REFURBISH THAT TERMINAL AND TURN IT INTO A CRUISE TERMINAL.
OVER THE YEARS, WE'VE REALLY DONE NOTHING BUT RE-OCCURRING MAINTENANCE ISSUES.
IT WAS ONE OF THESE THINGS WHEN IT STARTED LEAKING HERE, WE WENT OVER AND FIX IT THERE.
IT WAS NO BIG PROJECT EVER DONE.
NOW WITH THE ADVENT OF THE JUBILEE COMING IN HERE, WHICH IS THE CARNIVAL, ANOTHER BRAND NEW SHIP.
FIRST-TIME EVER A NEW SHIP HAS BEEN BROUGHT TO GALVESTON AND WITHOUT COMING IN HERE AN INCREASE OF ABOUT 2,500 PASSENGERS PER TURN.
WHEN WE STARTED LOOKING AT EVERYTHING, WE STARTED THIS OUT.
EVERYBODY WAS LOOKING AT THIS AND EVERYBODY EVEN ENGINEERS, WE'RE ESTIMATING IT TO BE SOMEWHERE AROUND $30 MILLION.
AS THE REAL NUMBERS CAME IN, STARTED DRIFTING MORE AND MORE, SO WE'RE REALLY AT ABOUT 53 MILLION RIGHT NOW IN TERMS OF COST TO RENOVATE.
ONE OF THE THINGS I WOULD ALSO MENTION IS CBP, WHICH IS CUSTOMS AND BORDER PROTECTION, HAS NEVER HAD A FACILITY THERE THAT THEY'VE BEEN UNHAPPY WITH.
[04:10:05]
WE'VE HAD TO INVEST $10 MILLION INTERNALLY TO BUILD THEM OFFICES AND TO BUILD THEM, AND YOU DON'T JUST BUILD THEM AN OFFICE WITH DRYWALL.YOU BUILD THEM AN OFFICE WITH BLOCK AND SPECIAL SCREENING AND THEY HAVE TO HAVE THEIR OWN AC SYSTEMS BECAUSE OF THEIR COMPUTER SYSTEMS. COMPUTER SYSTEMS AROUND THREE-QUARTERS OF $1 MILLION JUST FOR THAT OPERATION.
BUT THEY BASICALLY HAVE SAID AT ONE POINT IN TIME, AND THEY WORK WITH US, BUT THEY'VE SAID AT ONE POINT IN TIME, LISTEN, WITH 2,500 NEW PASSENGERS WILL NEVER BE ABLE TO GET THESE PEOPLE THROUGH HERE QUICK ENOUGH TO KEEP YOUR CUSTOMER RATINGS UP.
THIS IS REALLY IMPORTANT IN THIS BUSINESS.
WHAT WE'RE DOING TO THE TERMINAL IS BASICALLY A TOTAL REVAMP.
WE'RE TAKING THE WEST END OF THE TERMINAL.
YOU WANT TO KEEP POINT THAT OUT TO EVERYBODY WHAT WE'RE TALKING ABOUT ON THE WEST END OF THE TERMINAL HERE, THAT WHOLE AREA, RIGHT THERE WAS A WAREHOUSE THAT WAS USED BY THE STEVEDORES SERVICING THE CRUISE LINES.
ANY CRUISE SHIP OF ANY SIZE TAKES BETWEEN 30 AND 40 TRACTOR TRAILER LOADS OF SUPPLIES FOR EVERY CRUISE.
MARTIN MURCHISON: THIS IS AN OPEN AREA WHERE THE TRUCKS COME IN AND THEN THIS IS THE WAREHOUSES.
RODGER REES: THAT WAREHOUSE, WHAT WE'VE DONE IS WE'RE HAVING TO TAKE UP THE FLOOR, IS A BAD FLOOR FOR 25 YEARS.
WE'VE BEEN RUNNING FORKLIFTS OVER.
THAT THE WHOLE NEW FLOOR GOING IN THERE.
THE WHOLE REASON FOR THAT IS TO BE ABLE TO INCREASE THE EMBARKATION AREA, TO BE ABLE TO HANDLE ADDITIONAL 2,500 PASSENGERS.
THEN AS YOU MOVE FURTHER WEST IN THE TERMINAL, ABOUT THREE-QUARTERS OF THE WAY DOWN, YOU'LL SEE THAT WHAT'S HAPPENING RIGHT IN THAT WHOLE AREA THERE IS A NEW CBP FACILITY.
THEN ALSO WITH THE ADVENT OF LARGER SHIPS, WERE LOOKING AT TWO GANG WAY SERVICING THE SHIPS.
IT'LL BE DELIVERED IN SEPTEMBER FROM, THERE'S ONLY REALLY ONE MAJOR MANUFACTURER OF GANG WAYS IN THE WORLD, BELIEVE OR NOT, THAT MANUFACTURERS THESE GANG WAYS THAT WE NEED.
WE'VE GOT A NEW GATEWAY COMING IN THERE AND THEN WE'RE UPGRADING ALL OF THE SECOND FLOOR, WHICH IS ALSO EMBARKATION AREA FOR CUSTOMERS WAITING.
WE'VE ADDED ONE MORE ESCALATOR, TWO MORE ELEVATORS, AND WE'RE BUILDING A RAMP SO THAT WE CAN GET THE CUSTOMER TO THE SHIP ON THE SECOND FLOOR.
ONE OF THE THINGS THAT WE HAD TO DO IS WE'VE GONE IN AND THE BOAT ITSELF IS REALLY STRUCTURALLY GOOD, EXCEPT TO THE POINT WHERE THE GANG WAY, WHICH IS A VERY HEAVY PIECE OF EQUIPMENT, HAS TO RUN UP AND DOWN THE DOCS.
WE'VE GONE IN AND WE SPENT ABOUT $8 MILLION ON REFURBISHING, REACHS, BASICALLY TEARING OUT ALL THE OLD PILINGS, PUTTING NEW PILINGS IN AND A NEW SURFACE AREA SO THAT WE CAN HANDLE THIS GANGWAY.
THEY'RE LOOKING FOR TO GANG WAYS TO SERVICE THE CRUISE SHIP.
I WOULD SAY TO YOU THAT CARNIVAL AND YOU JUST SAW THERE WAS AN ARTICLE LAST WEEK.
THEY PUT THE TEXAS STAR ON THE FRONT OF THEIR BRAND NEW SHIP, THE JUBILEE.
THEY'RE RUNNING THREE SHIPS OUT OF HERE NOW.
THERE'LL BE ADDING A FOURTH SHIP IN HERE, COME FALL.
PRINCESS HAS BEEN IN HERE NOW.
THIS IS THE SITUATION WHERE IT GIVES US AROUND 6-7 MILLION ADDITIONAL DOLLARS INITIALLY, AND PART OF THIS WAS HOLDING RENEGOTIATION OF THE CONTRACT WHICH ALLOWED US TO INCREASE OUR RATES THAT WE'RE CHARGING.
THEN I THINK MORE IMPORTANTLY THAN ANYTHING, 83.3 PERCENT OF THE CONSTRUCTION COST WILL BE RECOVERED FROM THE PASSENGERS OVER THE NEXT 20 YEARS.
MARTIN MURCHISON: THAT'S IN ADDITION TO THE [OVERLAPPING] REES: IT'S IN ADDITION TO OUR REVENUES.
WE GET ABOUT 83 PERCENT, AND MUCH LIKE ANY OTHER TERMINAL THAT WE BUILD LIKE, IF WE DO GET A NEW CRUISE TERMINAL 24, WE'RE TALKING ABOUT THE SAME NUMBERS BASICALLY WILL BE REIMBURSED ON A PER PASSENGER BASIS.
DOESN'T SOUND LIKE MUCH, BUT FOR EVERY TIME A PASSENGER GETS ON, EVERY TIME PASSENGER GETS OFF, WE'LL MAKE $2.75 AND ALL THAT WILL BE DEDICATED TOWARDS PAYING DEBT SERVICE.
WE'VE HAD THE CONVERSATION AT THE BOARD LEVEL THAT WE WOULD TAKE THAT MONEY.
WE BELIEVE THAT WE'LL BE AMORTIZING THE DEBT SOMEWHERE AROUND 17, 18
[04:15:04]
YEARS WE THINK WE'LL BE ABLE TO PAY OFF ALL THAT DEBT JUST BASED ON THE VOLUMES.AS I SAID, THE CRUISE BUSINESS HAS BEEN VERY GOOD TO GALVESTON TO THE PORT.
WE LOST $58 MILLION ON REVENUES.
WE REALLY HAVE BUILT OUR RESERVES.
IF WE HAD THOSE TWO YEARS WORTH OF REVENUES, WE WOULD PROBABLY BE DOING SOME THINGS A LITTLE BIT DIFFERENTLY, BUT WHEN YOU LOSE THAT REVENUE, WE WANT TO MAKE SURE WE'RE ALWAYS IN A GOOD RESERVES.
I REMEMBER WHEN I TALKED TO MARK ABOUT THIS, HE SAID WHEN HE FIRST GOT HERE, WE HAD WHAT, $750,000.
MARTIN MURCHISON: THAT WAS A MONTH, I GOT DOWN TO $750,000 TOTAL.
VICTOR PIERSON: PRETTY SURE HE CALLED THE BANK TO [OVERLAPPING] MURCHISON: WE WERE COMING OVER TO SEE YOU.
BUT THEN WE STARTED GETTING SOME INSURANCE PROCEEDS THEN.
RODGER REES: WE'RE LOOKING AT WE WE'VE ADOPTED A REIMBURSEMENT RESOLUTION.
RIGHT NOW WE'RE PAYING FOR ALL CONSTRUCTION OUR OWN CASH-FLOW.
I WANT TO CONTINUE TO HAVE RESERVES LEVELS THAT WE'RE AT.
WE'LL BE ABLE TO REIMBURSE OURSELVES BACK FOR WHAT WE'RE SPENDING AT THIS STAGE AND KEEP OUR RESERVES AT HIGH LEVELS.
VICTOR PIERSON: RODGER MENTION WHY WE'RE DOING THAT BECAUSE WE'RE UNDER A TIME DEADLINE OF DECEMBER IF I HAVE THIS.
NORMALLY, WE WOULDN'T BE DOING THAT.
WE WOULD HAVE EVERYTHING DONE.
BUT WE HAVE TO GET THE TERMINAL READY FOR DECEMBER 1 HAULAGE.
[OVERLAPPING] FINISHED IN DECEMBER.
RODGER REES: IT WILL BE COMPLETELY FINISHED.
VICTOR PIERSON: WILL BE OPERATIONAL.
DAVID FINKLEA: YOU ALREADY HAVE ACTIVE CONSTRUCTION CONTRACTS FOR THE WORK AND NOW YOU'RE ASKING FOR THE BOND ISSUES.
RODGER REES: I KEEP HEARING THAT.
DAVID FINKLEA: NO REALLY, HONESTLY, WHEN YOU COME UP WITH A FINANCIAL PLAN ON HOW YOU'RE GOING TO GO MAKE A COUPLE OF IMPROVEMENTS YOU OUTLINED, HOW ARE YOU GOING TO FUND IT? EITHER YOU'RE SELF-FUNDED OR YOU'RE GOING TO ISSUE BONDS FOR BUT THIS IS THE POSITION THAT YOU [OVERLAPPING] LET ME GIVE YOU THE SCENARIO IS AND IT WAS UNDER THE GUN, IS IF YOUR BIGGEST CUSTOMER CARNIVAL COMES TO YOU AND SAYS, WE WANT FIRST-TIME EVER BRING OUR NEWEST BIGGEST SHIP TO TEXAS.
WE SAID, YES, SURE, OF COURSE.
THEN SAYS, WELL, YOU NEED TO MAKE THESE IMPROVEMENTS AND IT'S GOING TO BE READY DECEMBER.
WE'RE GOING TO PAY FOR 83 PERCENT OF IT.
WE COULD ACTUALLY, CONTRARY TO WHAT STUDYING PER WEEK, IT ACTUALLY PAY THIS OUT OF CASH FLOW.
IT'S NOT THAT WE DON'T, WE COULD, BUT WE'D BE BACK TO WHEN [OVERLAPPING].
DAVID FINKLEA: YOU WILL USE YOUR RESERVE.
HARRY MAXWELL: IT'S A BUSINESS DECISION THAT WAS MADE QUICK.
DAVID FINKLEA: WELL, WHEN DID THEY ASK YOU THIS QUESTION? HARRY MAXWELL: BACK AT THE BEGINNING OF THE YEAR.
DAVID FINKLEA: IT'S CHANGED YOUR FINANCIAL INVESTMENT PLAN.
I TOOK A LOOK AT YOUR OTHER FUTURE INVESTMENTS THAT YOU'RE LOOKING AT, WHATEVER, $150 MILLION OR WHATEVER, AND [OVERLAPPING].
RODGER REES: THIS IS 50 OF IT.
DAVID FINKLEA: THEN SAY WHAT THOSE OTHER FUTURE IMPROVEMENTS BECAUSE YOU'VE ACCELERATED THIS ONE, BUT YOUR FUTURE IMPROVEMENTS, YOU MADE THE STATEMENT THAT HOPEFULLY BASED UPON THE REVENUES OFF OF THIS, THESE PARTICULAR IMPROVEMENTS THAT TROPE I THE CASHFLOW, SOME OF THOSE OTHER ONES.
RODGER REES: WELL, I MEAN WE, YOU KNOW, WE DON'T HAVE $100 MILLION TO BUILD THE ANY OF THIS TERMINAL.
WE WON'T BE LOOKING AT THE SAME THING, BUT I'VE HEARD IT AND WE WON'T BE COMING TO ANYBODY FOR ANY MONEY UNTIL WE HAVE ALL THE CONTRACTS IN PLACE.
WE'RE TALKING THE CONTRACTS NOW.
JOHN PAUL LISTOWSKI: THAT'S THE PROBLEM THOUGH.
RODGER REES: I DON'T KNOW WHAT'S WRONG.
JOHN PAUL LISTOWSKI: IS THAT YOU'RE COMING TO US.
HARRY MAXWELL: NOT SIGNED CONTRACT [OVERLAPPING] WILL HAVE COSTS IN PLACE, NOT CONTRACT IN PLACE CRUISE TERMINALS.
HARRY MAXWELL: BUT WE WILL HAVE WILL HAVE THE FINANCING ARRANGED BY THE TIME.
JOHN PAUL LISTOWSKI: I GET IT.
HARRY MAXWELL: WE'RE DOING ON BOTH AND SO WE'LL HAVE ENGINEERING GOING ON WHICH THE BOARD APPROVED.
JUST ENGINEERING, NO HARD COSTS BECAUSE WE'D HAVE TO DO ENGINEERING TO FIND OUT WHAT IT'S GOING TO COST.
RODGER REES: YOU HAVE TO CASH IT.
HARRY MAXWELL: THAT'S WHERE WE'RE AT.
THAT'S AS FAR AS WE'VE GONE ON 16 IS PRELIMINARY ENGINEERING.
BRIAN MAXWELL: JOHN AND THEN MIKE.
JOHN PAUL LISTOWSKI: COUPLE QUESTIONS.
ONE QUESTION WOULD BE, YOU SAID YOU COULD FUND THIS.
YOU GO TO RESERVE, DO YOU ALL HAVE ANY TYPE OF POLICIES AGAINST BRINGING DOWN YOUR RESERVES? HARRY MAXWELL: NO, BOARD RESTRICTED FUNDS IS ALL WE HAVE.
[04:20:05]
WE DON'T HAVE 90 DAY RESERVE POLICY LIKE THE CITY ASKED, WE NEVER COULD.THAT WAS LIKE A LUXURY WE COULDN'T EVEN DREAM ABOUT.
JOHN PAUL LISTOWSKI: IS THAT SOMETHING THAT YOU ALL CAN DREAM ABOUT NOW? HARRY MAXWELL: WELL, IF WE KEEP BUILDING THE BUSINESS, YES.
JOHN PAUL LISTOWSKI: IT MAKES FINANCIAL SENSE, [OVERLAPPING].
RODGER REES: THIS BOND OFFERING IS A DEBT SERVICE RESERVE FOR ONE YEAR'S WORTH OF DEBT SERVICE.
JOHN PAUL LISTOWSKI: IN THE CONTRACT, SO THE CARNIVAL CONTRACT THAT YOU'RE USING TO PAY BACK THIS BOND, TELL ME HOW YOU ALL GET REPAID FOR THIS.
RODGER REES: WELL, WE GET REPAID ON A PER PASSENGER BASIS.
WE HAVE A CONTRACT THAT WE'LL BE CHARGING $2 AND HERE AGAIN, THIS IS UNDER CONSTRUCTION.
WHAT WE HAVE IN OUR CONTRACT IS AT THE END OF THIS CONSTRUCTION PERIOD, WE WILL TRUE UP EVERYTHING AND COME UP WITH WHAT EXACTLY THE NUMBER.
BECAUSE WE JUST HAD BECAUSE OF THIS BUILDING IS SO OLD.
WE HAD A PIECE UP IN THE NORTHWEST CORNER THAT'S LEANING FOUR INCHES, THE COLUMNS ALL LEAN FOUR INCHES, AND THAT WAS PART OF THE DESIGN FOR THE, AS I MENTIONED, A RAMP AND NEW ESCALATORS AND ELEVATORS AREA.
WE HAD TO MOVE THAT AND SO $50,000, MORE ENGINEERING COSTS.
THE FINAL NUMBER WILL BE TRUED UP WHEN EVERYTHING'S DONE, EVERYBODY IS READY AND THEN THAT'S WHEN WE WILL FIGURE OUT EXACTLY WHAT THE CAPEX FEE IS.
RIGHT NOW AND I NEGOTIATED THIS WHEN STARTING IN JANUARY, WE'RE BEING PAID $2 PER PASSENGER PER TURN AGAINST THIS CONSTRUCTION COST.
I WENT TO THEM AND SAID, WE'RE GOING TO DO ALL THIS WORK, WE WANT TO START COLLECTING THAT MONEY NOW.
THAT MONEY WILL BE COLLECTED AND PAID AGAINST THE DEBT SERVICE WHEN WE HAVE THE FINAL NUMBER.
WE BELIEVE, BASED ON GUARANTEES, WE HAVE GUARANTEES FROM CARNIVAL ON PASSENGER MOVEMENTS.
BASED ON THOSE PASSENGER MOVEMENT GUARANTEES, WE CALCULATE WE'LL BE CHARGING ABOUT $2.75 PER PASSENGER PER TURN, WHICH WILL GENERATE SO MUCH PER YEAR TO PAY DEBT SERVICE.
HARRY MAXWELL: THAT'S JUST FOR THE DEBT SERVICE? JOHN PAUL LISTOWSKI: THAT'S JUST DEBT SERVICE.
HARRY MAXWELL: WHAT OTHER FEES DO YOU GET? RODGER REES: WE HAVE ALL THE SHIP SERVICES FEES, WE GET PASSENGER SERVICE FEES, WE GET SECURITY CHARGES.
THIS REIMBURSEMENT IS NOT INCLUSIVE AND I WOULD ALSO TELL YOU THAT WHAT WE DID WAS WE UPPED OUR FEES, OUR PASSENGER SERVICE FEES $2 THE FIRST YEAR.
WE WERE GETTING ALMOST $8 PER PASSENGER IT'S NOW $10.
I KNOW IT DOESN'T SOUND LIKE A LOT MUCH MONEY, BUT WHEN YOU'RE TALKING ABOUT A MILLION AND A HALF PEOPLE.
JOHN PAUL LISTOWSKI: THAT ACTUALLY SOUNDS LIKE A LOT OF MONEY.
[OVERLAPPING] IT'S A LOT OF MONEY.
[LAUGHTER] PAY THE DEBT SERVICE.
JOHN PAUL LISTOWSKI: HOW MUCH DOES THE CITY GET IN THIS CONTRACT? RODGER REES: I THINK YOU'RE GETTING $0.25 PER PASSENGER PER TURN.
JOHN PAUL LISTOWSKI: [OVERLAPPING] THAT DOESN'T SOUND LIKE A LOT OF MONEY.
RODGER REES: YEAH, [OVERLAPPING].
IT'S A 17 YEAR CONTRACT WITH A FIVE-YEAR OPTION.
JOHN PAUL LISTOWSKI: IT'S $0.25 PER PASSENGER FOR 17 YEARS? RODGER REES: YES.
JOHN PAUL LISTOWSKI: PER TURN.
JOHN PAUL LISTOWSKI: [OVERLAPPING] FOR 17 YEARS SO WE'RE KIND OF STUCK WITH THIS FEE FOR 17 YEARS? RODGER REES: I THINK IT WAS MORE THAN YOU WERE GETTING [LAUGHTER] NEW REVENUES TO YOU.
HARRY MAXWELL: CARNIVAL HAD NOTHING IN IT.
JOHN PAUL LISTOWSKI: WHO NEGOTIATED THE CONTRACT? RODGER REES: I DID.
DAVID FINKLEA: WHAT DOES THE PORT GET OVER 17 YEARS IS THERE ANY ESCALATION IN US? THERE IS ESCALATION ON YOUR END.
JOHN PAUL LISTOWSKI: WHY WOULD YOU ESCALATE YOUR END AND NOT THE CITY'S END? RODGER REES: WELL, BECAUSE YOU GUYS WERE HAPPY WITH $0.25.
JOHN PAUL LISTOWSKI: NO, WHO SAID WE WERE HAPPY? [OVERLAPPING].
RODGER REES: THIS ONE NEVER CAME ACROSS.
THIS GROUP WHEN WE BROUGHT THAT CONTRACT, IT WAS ALL NEW REVENUE FEE.
[BACKGROUND] HASN'T COME TO US.
JOHN PAUL LISTOWSKI: WE HAVEN'T SEEN A CONTRACT.
WE HAVE NOT SEEN A CONTRACT FOR CARNIVAL.
RODGER REES: YOU'RE TALKING ABOUT ROYAL CARIBBEAN? [OVERLAPPING] TALKING TO CARNIVAL.
HARRY MAXWELL: WELL, IT'S KIND OF HARD I MEAN.
JOHN PAUL LISTOWSKI: YOU JUST SAID THAT WE WERE HAPPY WITH $0.25 IN THIS CONTRACT WHEN DID NOT BRING THAT CONTRACT TO US.
RODGER REES: NO WE WOULD NOT HAVE BROUGHT THAT CONTRACT TO YOU.
JOHN PAUL LISTOWSKI: DON'T SAY WE'RE HAPPY WITH $0.25 WHEN WE HAVEN'T EVEN SEEN THE CONTRACT.
RODGER REES: WELL THE CONTRACT HAS $0.25 IN IT.
JOHN PAUL LISTOWSKI: WE'RE NOT HAPPY WITH THAT.
I AM NOT HAPPY WITH THAT, I'LL TELL YOU THAT RIGHT NOW.
RODGER REES: I UNDERSTAND THAT.
JOHN PAUL LISTOWSKI: DON'T SAY WE'RE HAPPY WITH IT.
I'LL SAY IT LIKE I SAID A MINUTE AGO, YOU WERE HAPPY WHEN WE BROUGHT THE ROYAL CARIBBEAN CONTRACT IN HERE BECAUSE YOU HAD NEVER GOTTEN A DIME BEFORE THAT.
[04:25:01]
JOHN PAUL LISTOWSKI: NOT ALL OF US WERE HAPPY WITH THAT ON THE ROYAL CONTRACT, I PROMISE.BUT IT WAS MONEY YOU NEVER GOT.
DAVID COLLINS: YOU KNOW WHAT? THAT'S BEEN ONE OF THE PROBLEMS OF THE CITY FOR A LONG TIME.
IS, HERE KID, HERE'S A NICKEL, DON'T BOTHER ME.
DAVID COLLINS: I KNOW YOU GUYS ARE GOING GANGBUSTERS OVER THERE, BUT HONEST TO GOD, I DON'T SEE HOW THIS BENEFITS THE CITY OF GALVESTON ALL THAT MUCH.
RODGER REES: WELL, IT'S YOUR ASSET WE'RE MANAGING.
DAVID COLLINS: WHAT'S THAT? RODGER REES: IT'S YOUR ASSET THAT WE'RE MANAGING.
JOHN PAUL LISTOWSKI: THAT'S CORRECT.
BUT WE HAVE NO CONTROL OVER THE NEGOTIATION OF THIS CONTRACT.
IT IS OUR ASSET THAT WE'RE NOT MAKING A LOT OF MONEY OFF OF.
DAVID COLLINS: ONE OF OUR BEST ASSETS.
JOHN PAUL LISTOWSKI: THE GROWING.
DAVID COLLINS: LET ME ASK THIS.
RODGER REES: IT WASN'T ONE OF YOUR BEST ASSETS.
DAVID COLLINS: NO, AND YOU'VE TURNED IT INTO ONE.
YOU'VE DONE A GREAT JOB OF BECAUSE WE ALL REMEMBER WHAT THE PORT LOOKED LIKE AND HOW MUCH IS RODGER SAID HE HAD $0.50 IN THE KITTY WHEN YOU GOT HERE, AND SO TURNING IT INTO A CRUISE PORT'S BEEN GREAT FOR THE PORT.
BUT IT'S PUT A LOT OF EXCESS STRESS ON THE CITY.
HOW MANY PASSENGERS YOU CAN SEE THIS YEAR IN AND OUT? I MEAN, THIS PAST WEEKEND, TEXT DOT CLOSED THE FREEWAY FOR 36 HOURS.
WHEN YOU WERE TRYING TO LOAD AND OFFLOAD 40,000 PEOPLE, THERE'S A LOT OF PEOPLE COMING UP AND DOWN HARBOR SIDE, I GET THAT.
IT'S GOOD FOR THE HOTEL INDUSTRY, SOMETHING LIKE 20 PERCENT OF THE TWO-STAR HOTELS REVENUE COMES OFF OF A PRE-IMPOSED CRUISE.
BUT IT'S NOT FLOWING INTO THE CITY COFFERS.
WE'RE SEEING THE BURDEN OF THIS, BUT WE'RE NOT GETTING ANYTHING OUT OF IT.
RODGER REES: YEAH, HERE AGAIN I UNDERSTAND THAT.
THE BURDEN I'D LOVE TO UNDERSTAND THE BURDEN BECAUSE WE PROVIDE OUR OWN POLICE, WE PROVIDE ALL OF OUR OWN TRAFFIC.
WE PROVIDE ALL THE INFRASTRUCTURE THAT THEY COME IN OTHER THAN HARBOR SIDE DRIVE, WHICH IS A STATE HIGHWAY.
I KNOW I'LL BEGRUDGING YOU THE MONEY, BELIEVE ME.
ALL I SAY IN MY PHILOSOPHY IS I GOT A LOT OF WORK LEFT TO DO.
I GOT A TON OF WORK LEFT TO DO, $250 MILLION WORTH OF WORK LEFT TO DO.
[OVERLAPPING] EVERY DIME THAT GOES OUT OF HERE IS LESS MONEY THAT I CAN BORROW.
I'M GOING TO HAVE TO BORROW MONEY.
BUT THIS IS SOMETHING THAT I'VE TALKED TO OUR BOARD ABOUT THIS MANY TIMES.
YOU HAVE TO LEVERAGE YOUR CASHFLOW AND LUCKILY YOU NOW ARE AT A POINT THAT WE CAN LEVERAGE OUR CASHFLOW.
DAVID COLLINS: I'M NOT ARGUING THAT YOU HAVE A NEED TO DO THIS.
I'M TALKING ABOUT ITS IMPACT ON THE CITY.
ONE OF THE THINGS WE'RE LOOKING AT RIGHT NOW IS WHAT'S THE COST OF A TOURIST IS.
WE'VE TALKED ABOUT THE BENEFIT OF A TOURIST.
WE'RE NOT WORKING OUT THE COST OF SERVICES.
I DON'T KNOW HOW MUCH OF THIS CONVERSATION YOU HEARD JOHN AND I TALKING IN BUDGET CONVERSATIONS ABOUT WHAT THE IMPACT ON RESIDENCES OF AD VALOREM TAX.
RODGER REES: DAVID, I'M SYMPATHETIC TO THIS.
BELIEVE ME, I'M SYMPATHETIC TO THIS.
THIS WILL BE A BOARD DECISION WHEN WE GET DOWN TO IT.
I'VE DONE WHAT I CAME HERE TO DO AND THAT'S TO BUILD THIS BUSINESS TO GENERATE POSITIVE CASHFLOW SO THAT WE CAN LEVERAGE THAT CASHFLOW AND DO THE INFRASTRUCTURE.
I'M NOT A POLICY MAKER, I'M A PAID EMPLOYEE, SO I'M DOING MY JOB.
THAT'S WHAT I WANT TO DO AND I AM VERY PARTIAL TO THE PORT.
DAVID COLLINS: I GET IT, AND YOU KNOW WHAT, YOU'RE RIGHT.
I'M ARGUING WITH THE WRONG GUY, HARRY.
HARRY MAXWELL: I'VE BEEN HAVING MY HAND UP [LAUGHTER] [OVERLAPPING].
DAVID COLLINS: GO RIGHT AHEAD, HARRY.
I SYMPATHIZE WITH THE CITY SO WHEN WE DID ROYAL CARIBBEAN, WE CAME TO THE CITY.
CITY WASN'T GETTING ANYTHING FROM US BUT $180,000 A YEAR.
DAVID COLLINS: ALSO THERE'S NO ESCALATION IN IT, I'LL JUST POINT [OVERLAPPING] WE CAME, WE DID $0.50 A PASSENGER IN THE ROYAL.
WHEN DISNEY CAME UP WE GOT THE $0.50, WHEN EVERYONE COMES UP WE GOT THE $0.50.
WE CAN'T REALLY GO ON AND SAY, DISNEY YOU PAY $0.50, CARNIVAL PAY $1, THE NEXT ONE PAY $1.50.
BUT PARKING CAME UP, BRIAN AND THE MAYOR MET.
HEY, WHAT ABOUT A $1 A CAR? NO PROBLEM, WE'LL DO IT.
WE WILLFULLY SAID YES, WE'LL DO IT.
YOUR BUDGET'S LOW BY THE WAY BECAUSE I THINK IN 2024 WHEN IT'S ALL SAID AND DONE, THE PORT IS GOING TO GIVE YOU THREE MILLION DOLLARS BETWEEN PASSENGER FEES AND THE PARKING FEES, A DOLLAR A CAR.
IT'S GOING TO BE THREE MILLION DOLLARS A YEAR.
WE'RE STARTING TO SHARE WITH THE CITY, DO OUR PART AND THE OTHER THING IS WE'RE
[04:30:01]
BRINGING 2,500 MORE PASSENGERS.THAT'S PARKING, THAT'S TARIFF, THAT'S SALES TAX, WE SEND THE CITY THIS LOCAL SHARE OF THE SALES TAX JUST ON PARKINGS, ALMOST MORE THAN 35-50 GRAND A MONTH AND A LOCAL SHARE OF THE SALES TAX.
THAT DOESN'T COUNT WHAT THE RESTAURANTS DO, THE HOTELS DO, THE PEOPLE THAT WORK FOR THIS SHIP.
YOU WANT MORE, I UNDERSTAND THAT BUT TO SAY THAT WE HAVEN'T STEPPED UP, THAT'S NOT FAIR.
MARIE ROBB: WELL, AND IT'S A DOUBLE SIDED SWORD BECAUSE WE COULD GET ALL THE MONEY FROM THE PORT AND THE PORT'S NOT GOING TO GO ANYWHERE.
DAVID COLLINS: SUPPORT THE MONEY WE'RE TALKING ABOUT COMES FROM THE TOURISTS.
IT'S OVER AND ABOVE WHAT THEY'RE CHARGING NOW.
MARIE ROBB: BUT THAT'S WHAT THEY USED TO MAKE OPERA DANCE.
DAVID COLLINS: WHAT'S THAT? [OVERLAPPING] WHAT THE CITY IS RECEIVING IS OVER AND ABOVE WHAT YOU WERE CHARGING ALREADY.
RODGER REES: WE HAVE IN THE [OVERLAPPING], ROYAL CARIBBEAN AGREED TO PAY US AT ALL WE'D CONTRACTED AND THEY ALSO AGREED TO ADD THE $0.25, WITH THE CARNIVAL AND DISNEY BOTH.
DAVID COLLINS: BUT SHE KNEW THAT $0.25 WAS IN THERE.
RODGER REES: WE TOOK IT OUT MORE SHARES.
DAVID COLLINS: NOW IT'S NOT BECAUSE MARKETING.
HARRY MAXWELL: IT WAS NOT IN THERE.
WE JUST TOOK IT OUT AND WE'LL SEND, IT WASN'T IN THE TARIFF.
JOHN PAUL LISTOWSKI: THE POINT I WAS TRYING TO MAKE HERE IS THAT THE $0.25 IS THE SAME FEE WE GET FOR THE NEXT 20 YEARS AND AS WE DISCUSSED HERE, WE ARE SEEING INCREASED COSTS EVERY YEAR HERE AND SO YOU ALL UNDERSTAND THAT, YOU ALL ARE PUTTING THOSE ESCALATION CLAUSES IN YOUR CONTRACT BECAUSE YOU UNDERSTAND THAT IT'S GOING TO COST YOU MORE MONEY IN 20 YEARS TO OPERATE THAN IT DOES TODAY.
RODGER REES: YOU HAVE TO MAINTAIN.
JOHN PAUL LISTOWSKI: THAT'S RIGHT.
SO WE ASKED FOR THE SAME COURTESY AND WE HAVEN'T GOT THAT.
AND SO [OVERLAPPING] WE ARE ASKING FOR THE SAME COURTESY.
VICTOR PIERSON: ONE OF THE THINGS.
JOHN PAUL LISTOWSKI: I WOULD EXPECT THOUGH, THAT YOU WOULD UNDERSTAND THAT AND THAT YOU WOULD PUT THAT IN THE CONTRACT BECAUSE WE'RE TRYING TO DO THE GREATER GOOD HERE FOR THEM HERE ON THIS [OVERLAPPING], WE'RE NOT OPERATING IN A VACUUM AS INDEPENDENT PEOPLE.
VICTOR PIERSON: WE ARE HERE ON THIS BOND ISSUE IS WE'RE ADDING HOW MANY MORE PASSENGERS PER SHIFT CALLING 2,500 SO YOU'RE MAKING THAT WE'RE HAVING TO SPEND THE MONEY ON THE BOND ISSUE, GET OUR CAPACITY UP, TO BRING IT MORE PASSENGERS SO YOU'LL GET 30 PERCENT MORE OF THE PASSENGER FEE BECAUSE THE NUMBER OF PASSENGERS ARE THAT MUCH BIGGER AND SO THAT'S ONE ESCALATION AND WE SEE CONSTANTLY HAVING TO GO BACK AND EXPAND THESE TERMINALS BECAUSE THE SHIFTS ARE JUST GOING TO CONTINUE TO GET BIGGER SO THERE WILL BE SOME INCREMENTAL INCREASE AS LONG AS JUST FROM THE SIZE OF THE SHIPS AND THE NUMBER OF PASSENGERS.
HARRY MAXWELL: WE WANT TO BE GOOD PARTNERS.
RODGER REES: IT HURTS BUT TOUGH KID, THAT'S WHAT YOU GET.
DAVID COLLINS: NO, I HEAR WHAT YOU'RE SAYING.
RODGER REES: WE'VE STILL GOT TO GO FORWARD.
[OVERLAPPING] IT'S GROWING THE BUSINESS AND EVERY TIME WE GROW THE BUSINESS IT BENEFITS THE CITY ALSO, THAT'S THE POINT YOU'LL BRING A 2,500 PATCHES THAT IMPACTS THE CITY TOO THAN JUST DIDN'T AFFECT THE PORT.
JOHN PAUL LISTOWSKI: WE WOULD LIKE SOME NEGOTIATION HERE WITH THESE CONTRACTS, YOU GO AND NEGOTIATE THESE CONTRACTS.
WE DON'T HAVE ANYTHING TO DO WITH IT.
IT COMES TO US AND THEN WE ARE EXPECTED TO NOT APPROVE IT BECAUSE WE DON'T HAVE TO APPROVE THESE CONTRACTS, WE JUST HAVE TO BRIDGE THE DEBT.
SO WE HAVEN'T SEEN ANYBODY FROM THE PORT IN TWO YEARS HERE, COUNSEL.
I'M NOT PUTTING ALL THAT BLAME ON YOU'LL, IT'S US TO WE NEED TO BE ASKING QUESTIONS TO YOU ALL AND GETTING YOU ALL OVER HERE AS WELL.
BUT THE BOTTOM LINE IS, WE NEED MORE COMMUNICATION AND, YOU SAY THAT I'M JUST ASKING NOW AND THAT IS PARTIALLY OUR FAULT FOR NOT ASKING HIM BEFORE, BUT WE DON'T EVEN HAVE THE ABILITY RIGHT NOW TO ASK THOSE QUESTIONS REALLY AND GET AN ANSWER.
YOU HAVE ALL THE POWER TO NEGOTIATE.
YOU ALL REPRESENTATIVE ON OUR BOARD.
MARIE ROBB: THAT'S REALLY NOT GETTING UPDATED.
JOHN PAUL LISTOWSKI: BUT THAT HASN'T HELPED US REALLY.
BRIAN MAXWELL: LET ME INTERJECT HERE.
WE HAD LOVED TO TALK ABOUT BEFORE.
[LAUGHTER] WE HAVE NOT GOTTEN UPDATES FROM THE PORT.
THAT'S PARTIALLY OUR LIAISONS, ONE BEFORE ME AND NOW I'M WITH ME BEING ON THE WORST BOARD.
WE HAVE ITEM 3G, WE'RE GOING TO START THAT COMING UP THIS NEXT MEETING.
WE'RE GOING TO HAVE A CONSTANT UPDATE FROM THE PORT EVERY COUNCIL MEETING AND MIKE'S GOING TO GET ONE FOR THE PORT BOARD.
[04:35:03]
WE WERE GETTING UPDATES ON THE PORT BOARD AND WE STOPPED THAT ALSO AND SO WE'RE GOING TO PICK THAT BACK UP.WE'RE NOT GETTING UPDATES REGULARLY ON THE PORT BOARD, BUT YOU'RE RIGHT.
WE NEED TO GET THOSE FROM THE PORT AND WE NEED TO HAVE MORE COMBINED MEETINGS WITH THE PORT.
THERE'S NO DOUBT ABOUT THAT AND WE NEED TO KEEP THAT COMMUNICATION GOING.
YOU'RE RIGHT, JOHN, WHEN YOU SAY THE CONTRACTS, WE DON'T HAVE A SAY OVER THOSE CONTRACTS.
IS THAT RIGHT, DON? DONALD GLYWASKY: BRIAN MAXWELL: BUT I THINK WHAT I HEAR THE PORT SAYING THAT YOU'RE OPEN TO DISCUSS THOSE CONTRACTS WITH US, IT'S NOT SOMETHING THEY'RE TRYING TO KEEP YOUR [OVERLAPPING].
JOHN PAUL LISTOWSKI: LATE TO TALK ABOUT THAT, ISN'T IT? BRIAN MAXWELL: WELL.
[OVERLAPPING] WE'VE GOT A LOT OF CONTRACTS AGO, NOT THEY TRUST ME WITH A WAY THAT PORT IS MOVING, THERE'S GOING TO BE A TON MORE CONTRACTS COMING UP OVER THERE AND ON THAT, THE IMPACT ON THE CITY.
I UNDERSTAND THAT WITH ALL THE CRUISE PASSENGERS COMING ON HERE AND THERE'S NO DOUBT.
BUT THEY'VE DONE SOMETHING AND CRUISE TERMINAL 10, I THINK ALL OF US CAN AGREE WITH ALL THE EXTRA PASSENGERS COMING ON THERE THE WAY THEY STRUCTURE THAT PARKING LOT, IT HASN'T REALLY IMPACTED THE HARBOR SIDE.
I HAVEN'T HEARD ONE COMPLAINT FROM THE EXTRA CRUISE PASSENGERS GOING TO APPEAR 10.
AND ON THE OTHER TWO, CRUISE TERMINALS, 25 AND 28, THE PORT IS WORKING TO MOVE THOSE OFF OF THE HARBOR SIDE AT 33RD.
THEY'RE GOING TO TURN LEFT AND GO ON PORT PROPERTY AND SO THEY WON'T EVEN HAVE THOSE PEOPLE ON ARBOR SIDE.
THEY'RE ALSO THINKING ABOUT A PARKING GARAGE.
MARIE ROBB: I THINK, ONE OF THE THINGS WE CAN LOOK AT AND DISCUSS BECAUSE I AGREE IT WAS DONE AND I WHO ASKED TO COME AND TALK TO US MORE AS WHEN IF THE EXISTING CONTRACTS, IF THERE'S ESCALATIONS AND FOR THE POOR, PERHAPS WE CAN ESCALATE THE CITY'S BENEFIT AS WELL.
JUST THAT AN AGREEMENT WITH THE BOARD.
BUT I'M ALSO EXTREMELY SENSITIVE THAT WE CAN GET YOUR INCOME BECAUSE HOW WOULD YOU EVER MAKE IMPROVEMENTS IF YOU HAVE NO REVENUES? RODGER REES: AND IN EVERY IMPROVEMENT THERE'S $50 MILLION.
I THINK WHAT JOHN IS SAYING AND I THINK WE ALL SHARE THE FRUSTRATION THAT THE $0.25 PER TURN, WE DON'T HAVE ANY SAY IN NOW TO INCREASE THAT AND ESCALATE THAT AS THE OTHER TARIFFS ARE ESCALATED AND THIS IS A QUESTION TOO.
DO WE HAVE THAT ABILITY TO COME INTO THESE CONTRACTS? MARIE ROBB: PROBABLY THEY COULD FOR PARTNERS [OVERLAPPING].
RODGER REES: BRIAN MAXWELL: WHO HAS EXCLUSIVE MANAGEMENT.
RODGER REES: THE CONTRACTS DO NOT ESCALATE TO $0.25.
BRIAN MAXWELL: THAT'S MY POINT.
HARRY MAXWELL: THE NEWS MAYOR IS THAT THEY ALWAYS COME BACK AT SOME POINT FOR SOME TYPE OF RENEGOTIATION AND WHEN THEY DO AND THEN WE'LL TRY IT WE'LL GO AFTER IT THEN, BUT THEY ALWAYS BECAUSE THEY WANT TO CHANGE SOMETHING, DO AN IMPROVEMENT, ONLY ONE THAT PROBABLY WOULD BE ROYAL, BUT THE REST OF THEM WOULD COME RODGER REES: THAT I INTRODUCED INTO THE CONTRACTS, THIS FIVE-YEAR LOOK-BACK, WHICH NOBODY HAS DONE THAT IN THE INDUSTRY TO DATE WHERE NOW EVERY FIVE YEARS WE HAVE THE OPPORTUNITY TO GO TO A LOOK BACK ON WHERE WE ARE IN TERMS OF THE MARKET RATES ON OUR FEES.
WHEN I CAME HERE, I INHERITED CONTRACTS, THEY WERE TERRIBLE CONTRACTS AND WE MADE NO MONEY OFF OF THEM AND SO I WAS VERY SENSITIVE TO THAT WHEN WE NEGOTIATE THIS NEW CONTRACT AND TONY AND I PUT TOGETHER LANGUAGE SO THAT EVERY FIVE YEARS IN THE CONTRACTS WE'RE NEGOTIATING WITH MSC AND NORWEGIAN, AS WELL AS WE'VE ALREADY GOTTEN IT IN THE CARNIVAL, GIVES US THE ABILITY TO SAY, EVERY FIVE YEARS, WHERE ARE WE IN TERMS OF MARKET RATES AND CAN WE GO INCREASE AT THAT POINT, A ONETIME INCREASE EVERY FIVE YEARS.
SO IT GIVES US THE ABILITY TO TAKE CARE OF THESE SITUATIONS WHERE INFLATION'S RAMPANT AND WE'RE TIED INTO A MAXIMUM THREE PERCENT.
BRIAN MAXWELL: WELL, I THINK WE THE COUNCIL.
IF THERE'S A WAY THAT WE CAN GET BACK INTO THE CONTRACTS.
TONY, YOU'RE MAKING NOTES THAT.
TONY BROWN: WE HAVE A CONSTANT STREAM OF AMENDMENTS THAT COME OUT OF THESE SO WHAT HAS BEEN MADE LOUD AND CLEAR IS THAT WHEN WE DO THAT, WE WILL BRING THAT AS A TERM TO MODIFY IF WE CAN'T FIND A WAY TO DO IT ALREADY.
MARIE ROBB: I THINK YOU NEED TO COME TO US BEFORE YOU GET IN NEGOTIATIONS SO WE CAN SAY, WE'D LIKE TO SEE XYZ.
[04:40:02]
CAN YOU MAKE THAT PART OF YOUR NEGOTIATION? RODGER REES: WELL, AND I HEAR YOU, MARIA, AND THAT'S HARD BECAUSE WE'RE UP AGAINST EVERY CRUISE PORT IN THE COUNTRY AND WHAT THE CRUISE LINES ARE PAYING IN THOSE PORTS.THEY HAVE PUBLIC RECORDS REQUEST OF EVERY CONTRACT WE'VE EVER HAD AND SO WE KNOW WHAT THEY'RE PAYING THERE, WE KNOW WHAT THEY'RE PAYING HERE SO FOR YOU TO COME IN AND CHANGE THAT CONTRACT AFTER WE'VE NEGOTIATED IT, IT MAKES IT HARD.
MARIE ROBB: NO, BUT THAT'S WHAT I'M SAYING IS YOU TALK ABOUT IT BEFORE YOU NEGOTIATE IT.
HARRY MAXWELL: HERE IS THAT POLICY AS WELL AS THE BOARD OVER THE PORT AND SO I THINK WE NEED TO SET POLICY AND HAVE THE BOARD OVER THERE ADOPT THOSE POLICIES SO WE DO HAVE SOME SAY IN THIS OR A UNDERSTANDING OF WHAT WE EXPECT HERE AND WHAT WE'RE EXPECTING OF THE BOARD THAT WE APPOINT.
AND WE NEED TO LOOK AT THAT AND SEE WHAT POLICIES WE NEED TO PUT IN PLACE TO MAKE THAT HAPPEN.
BRIAN MAXWELL: WELL, THAT GOES THROUGH THE PARK BORDER, GOES ALL OF THESE TYPES OF ENTITIES THAT WE HAVE A RELAY.
AND YOU'RE RIGHT, WE COULD HAVE THAT DISCUSSION.
BUT I THINK RIGHT NOW, I THINK YOU UNDERSTAND THAT IF THERE'S A WAY OF GETTING BACK INTO THESE EXISTING CONTRACTS FOR HAVING AN ESCALATION AND POSSIBLY AN INCREASE IN THAT TARIFF.
SECONDLY, ANY NEW CONTRACTS, THAT'S SOMETHING THAT WE WOULD LIKE TO GIVE INPUT ON THAT PARTICULAR PORTION.
JOHN PAUL LISTOWSKI: AND THAT'S WHERE THOSE ADOPTED POLICIES COME INTO PLAY.
JOHN PAUL LISTOWSKI: BEFORE WE GO INTO A CONTRACT ON PURE 16, YOU'VE DONE A GREAT JOB BRINGING CRUISES IN HERE.
YOU'VE MADE THE PORT VERY BIBLE ENTITY.
BUT WE NEED TO HAVE A LITTLE BIT OF SAYING THAT OR WE WOULD LIKE THAT AND WE NEED TO PUT THOSE POLICIES IN PLACE BEFORE WE GO INTO ANOTHER CONTRACT.
IF THAT'S SOMETHING THAT'S GOING TO HAPPEN SOON, THEN WE NEED TO PUT THOSE POLICIES IN PLACE.
WE NEED THE WARD'S BOARD TO TAKE A LOOK AT THOSE POLICIES AND WORK WITH US AND ADOPT THE POLICIES AS THE BOARD OVER AT THE WORK.
MARIE ROBB: YOU'RE KEEPING IN MIND THAT IT'S STILL NEEDS TO BE A WIN-WIN.
JOHN PAUL LISTOWSKI: ABSOLUTELY.
DAVID COLLINS: I STILL DON'T UNDERSTAND WHERE YOU THINK THIS IS MONEY'S COMING OUT OF THE PORT'S POCKET.
BRIAN MAXWELL: SAY THAT AGAIN, DAVE.
DAVID COLLINS: [OVERLAPPING] I STILL DON'T UNDERSTAND WHY MARIE THINKS THE MONEY IS COMING OUT OF PORT'S POCKET.
THE MONEY THEY GET FROM THE CRUISE LINE THEY USE TO IMPROVE OTHER PARTS OF THE PORT.
THAT'S 25 PERCENT PER HEAD IN THE WARD [NOISE] CONTRACT WASN'T PART OF THAT.
RODGER REES: IN THAT CONTRACT ONLY.
DAVID COLLINS: WHY IS IT NOT IN THE REST OF THEM? RODGER REES: WE HAD TO REDUCED OUR TARIFFS IN THE OTHER TWO CONTRACTS, THE CARNIVAL AND THE DAVID COLLINS: WHY DIDN'T YOU ADD THIS? RODGER REES: BECAUSE THEY WOULDN'T PAY IT.
DAVID COLLINS: THEY WOULDN'T PAY IT.
WELL, THEY DON'T WANT THIS MARKET VERY BAD.
JOHN PAUL LISTOWSKI: IT'S STILL WORTH TO THE $15 THAT WE JUST PUT IT IN PLACE.
I'M SURE YOU HAVEN'T SEEN A CAR LOST PARKING IN A PARKING LOT BECAUSE YOU CHARGED ANOTHER DOLLAR OUT THERE.
THAT DIDN'T COME OUT OF Y'ALL'S POCKET, IT CAME OUT OF CUSTOMERS POCKET.
DAVID COLLINS: YOU INVESTED $10 MILLION IN THAT PARKING LOT TO GET THAT TO A POSITION TO BE ABLE TO COLLECT THAT MONEY.
[OVERLAPPING] THIS IS WHERE YOU GET INTO IT, AND I'M NOT ARGUING.
I'M JUST STATING THE FACTS THAT, YOU TALK ABOUT COMPETITIVE NATURE BETWEEN US AND OTHER THIRD-PARTY PARKING LOTS AND ALL THOSE THINGS.
EVERY OTHER PARKING SYSTEM IN THIS CITY IS CAPITALIZING OFF OF THE INVESTMENTS THAT WE'VE MADE IN THE PARKING.
WE HAD TO PUT THE $10-15 MILLION IN PARKING OUT THERE TO ALLOW THE PASSENGER CAR.
JOHN PAUL LISTOWSKI: BUT NOW YOU'RE COMING TO THE CITY AND ASKING US TO PROVE 60 MILLION, SO WE ARE PARTNERS WITH YOU IN THIS DEBT.
VICTOR PIERSON: JUMP OF THE REALITY IS IF WE'RE DEVOTED TO THE TERMINAL AT 16, WE'RE GOING TO BE RIGHT BACK HERE.
DAVID COLLINS: I THINK LOUD AND CLEAR ON WHAT.
VICTOR PIERSON: THAT WE'VE GOT TO LOOK AT THE REVENUE ENHANCEMENT.
RODGER REES: OR WE MIGHT WANT TO TALK ABOUT THE FINANCING BEFORE.
I MEAN, YOU'VE BACKED INTO A CORNER ON THIS $50 MILLION.
JOHN PAUL LISTOWSKI: THAT'S WHY I'M SAYING WE'RE NOT GOING TO DO IT THAT WAY ON.
VICTOR PIERSON: I THINK REST ASSURED THAT THE WARD'S BOARD HAS ADDRESSED THAT.
WE UNDERSTAND THE SITUATION ON THE FUTURE TYPE IN NEGOTIATIONS AND FUTURE LOOKING FOR PAYMENTS AND FUNDING AND ALL THAT.
WE'RE, VERY COGNIZANT OF THAT.
I'VE ALLOWED THIS DISCUSSION TO GO AROUND DIFFERENT PLACES BECAUSE I THINK IT
[04:45:02]
WAS IMPORTANT.BUT I'D LIKE TO BRING THIS BACK NOW TO THIS BOND PROPOSAL, AUGUST 10TH.
UNLESS WE WANTED TO MOVE IN A DIFFERENT DIRECTION, THIS IS COMING BACK TO COUNCIL FOR APPROVAL OR NOT ON THE BOND PROPOSAL.
RODGER REES: ONE THING THAT I WANT TO ADD TO THAT IS THAT WE'VE BEEN DISCUSSING THIS BOND OFFERING WITH THE CITY'S STAFF FOR WHAT PROBABLY 3, 4 MONTHS.
IT'S NOT A SITUATION WHERE THIS MAY BE THE FIRST TIME YOU'RE ASKING THAT BE ACT UPON IT.
BUT WE'VE HAD THESE OPEN DISCUSSION WITH HIM, WITH FINANCIAL ADVISORS, WITH EVERYBODY.
WE'VE BEEN HAVING DISCUSSIONS THAT THIS WAS COMING.
SO I DON'T WANT TO BE PAINTED AT THIS PICTURE OF THIS THING AT THE LAST MINUTE BECAUSE WE'VE HAD THESE DISCUSSIONS GOING ON AND THERE HAVE BEEN MOVING DISCUSSIONS.
AS THEY HAVE MOVED BOTH WAYS, WE HAD THOSE CONVERSATIONS.
I WOULD SAY IN EVERYBODY'S DEFENSE, THE NUMBERS ARE NEVER DONE UNTIL THEY'RE DONE.
THEY'RE NEVER DONE UNTIL WE KNOW EXACTLY THAT'S WHY WE BROKE THIS OFF.
I WAS JUST PROPOSING THAT WE PUT THE TWO BILLS TOGETHER, BUT THE TIMING DIDN'T WORK, AND SO IT'S GOING TO COST US PROBABLY AN EXTRA MILLION DOLLARS IN COST TO DO THAT.
MIKE HAS A QUESTIONS AND THEN DAVID.
BUT COULD YOU OUTLINE JUST THE OVERVIEW [NOISE] OF THE BOND PROPOSAL AS YOU SEE IT NOW, REALIZING THAT THE NUMBERS MAY NOT BE EXACTLY THAT? RODGER REES: I MEAN, BASICALLY WHAT WE'RE LOOKING AT IS, IF YOU'RE FAMILIAR WITH BOND FINANCING, IT'S A AMT OFFERING.
THE INTEREST RATES ARE SOMEWHERE AROUND FOUR-AND-A-HALF AND OVER, AND WE'RE AMORTIZING A BOND ISSUE OVER 20 YEARS AND INCLUDING THAT IN ADDITION TO US RECEIVING ABOUT $51 MILLION IN PROCEEDS, THERE WILL BE ALSO ONE YEAR'S WORTH OF DEBT SERVICE THAT WILL BE IN THE BOND OFFERING WILL BE SET ASIDE AS A SAFETY VALVE, AND WE WILL NOT BE CAPITALIZING ANY INTERESTS.
LOTS OF TIMES WHAT HAPPENS IN THESE TRANSACTIONS IN ORDER TO CUSTOMIZE THE CASH FLOW REQUIREMENT OR THE DEBT SERVICE, I SHOULD SAY, YOU WOULD GO IN AND SAY, THE FIRST FIVE YEARS, WE WILL PAY ANY INTEREST BECAUSE WE, THE PORT HAS APPROXIMATELY $12 MILLION IN DEBT EXISTING THAT EXTINGUISHES IN '26.
WHAT WE ORIGINALLY TALKED ABOUT AND HAD PART OF OUR PROPOSALS WAS DIFFERING ABOUT $5-6 MILLION WORTH OF INTEREST UP UNTIL 2026 WHEN THIS BOND PROPOSAL WILL BE PAID OFF.
THAT WOULD ENABLE US TO LEVEL THE CASH FLOW FOR THE PORT OVER THE NEXT TIME PERIOD UNTIL THE DEBT IS PAID OFF.
WE DID NOT PUT THAT PROVISION IN HERE.
WE ARE GOING TO GO AHEAD AND PAY THE FULL DEBT SERVICE STARTING FROM DAY ONE.
WE'LL BE LOOKING AT AMORTIZING THIS DEBT OVER 20 YEARS WITH A RESERVE BUILT INTO THE DEBT, AND IT TAKES APPROXIMATELY, AND I WOULD SAY MAYBE 25 PERCENT OF OUR CASH FLOW.
OUR CASH-FLOW RIGHT NOW IS APPROXIMATELY WE'RE ANTICIPATING ABOUT $24 MILLION OF CASH FLOW THIS YEAR WITH THE DEBT SERVICE FOR THIS TRANSACTION.
HOPEFULLY THE NEXT TRANSACTION WE'LL BE USING ABOUT HALF OF OUR CASH FLOW FROM OPERATIONS TO PAY THIS DEBT SERVICE.
PART OF THIS WHOLE TRANSACTION IS STILL THE CONVERSATIONS ABOUT THE WEST END.
WOULD WE PUT MONEY INTO THE WEST END AS PART OF THESE OFFERINGS? GETTING CLOSER TO WHAT THOSE NUMBERS WOULD BE TO DEVELOP THE WEST END.
WE'VE CREATED BOARD JOB OUT MORE MAN-HOURS THAT'S EVER BEEN CREATED HERE.
I MEAN, WE HAVE SO THE JOBS ARE CERTAINLY SOMETHING THAT WE'RE SENSITIVE TO.
BUT WHAT I'M SAYING HERE IS I THINK THAT IN A NUTSHELL, I BELIEVE YOU HAVE SOMETHING TO SAY ABOUT THAT.
RICHARD ACOSTA: AS FAR AS THIS FINANCING IS ROUGHLY, LIKE YOU SAID, ABOUT 51, 51.5 MILLION OR SO DEPOSITED INTO THE PORTS FOR CONSTRUCTION, THEN WE HAVE A ONE-YEAR RESERVE, AND THE COVERAGE RATIOS ARE FIVE TIMES.
BASICALLY, THEY'RE VERY HEALTHY.
NORMALLY, THEIR DEBT OFFERING IS 1.25.
[04:50:02]
THAT'S THE MINIMUM THAT YOU CAN GO DOWN TO.THESE ARE EXTREMELY HEALTHY LEVELS.
WE WERE JUST TRYING TO CREATE AN ARRAY OF ANY SPIKES AND DEBT SERVICE BECAUSE THEY'RE AMORTIZATION SCHEDULE RIGHT NOW IS THEY'RE VERY AGGRESSIVELY PLANE OFF THE EXISTING DEBT THAT THEY HAVE LIKE THREE MORE YEARS IN ORDER TO LAYER THEM THAT MONEY ON IT SPIKES UP A LITTLE BIT, BUT WE'VE BEEN ABLE TO FIND WITH THE CASH FLOWS THAT THEY'RE GENERATING.
IF YOU APPROVE THIS IN AUGUST 10TH, WE'D BE LOOKING TO FINANCE THIS PROJECT MAYBE TOWARDS THE END OF AUGUST, OR BEGINNING OF SEPTEMBER, AND HAVE THEIR MONEY AGAIN EITHER MID SEPTEMBER OR EARLY SEPTEMBER, DEPENDING ON WHERE THE PRICE IS.
MUNICIPAL RATES HAVE BEEN GOING DOWN DRAMATICALLY AND SO IT'S A GOOD TIME.
WE'RE TAKING A CONSERVATIVE APPROACH AT ALL THIS IS AGAIN AT A HIGHER LEVEL IN OUR INTEREST RATE MODEL.
BUT WE'RE GOING TO BE WORKING WITH COUNCIL TO FIGURE OUT WHAT CAN BE USED AS A TAX EXEMPT OR WHAT CAN BE HAD AS ALTERNATIVE MINIMUM TAX, AMT.
RODGER REES: WE ALSO HAVE A PREMIUM ASSOCIATED WITH THIS BECAUSE THE INTEREST RATES WE'RE PAYING ARE LOWER THAN WHAT THE MARKET.
RICHARD ACOSTA: THE WAY BONDS WORK IS THEY'VE GOT A STATED COUPON ON THERE.
BUT INVESTORS USUALLY THEY PAY MORE FOR IT, AND SO THE YIELD ON THOSE BONDS ARE ACTUALLY, IT'S A HIGHER YIELDING BOND FOR THEM.
IT'S A FUNCTION, IT'S A MATHEMATICAL COMPONENT.
BUT BASICALLY, WE'RE GOING TO SELL $51 MILLION IN PARAMOUNT AND GENERATE ALL THE PROCEEDS WE NEED IN PREMIUM OFFER THAT OFFERING.
RODGER REES: THE COST OF THE OFFERING IS AROUND A MILLION BUCKS.
VICTOR PIERSON: WE HAVE MIKE AND THEN DAVID AND FRANKLY.
MICHAEL BOUVIER: YOU'VE MENTIONED PARKING.
WHAT'S YOU SCHEDULE TO GET THE PARKING GARAGE UP? BECAUSE, I MEAN, YOU'RE TALKING ANOTHER 2,500 CARS PARKING.
RODGER REES: WELL, FOR THE NEW CRUISE TERMINAL, WE HAVE PARKING.
WE HAVE SUFFICIENT PARKING, NOT ON-SITE, BUT WE HAVE SUFFICIENT PARKING IN OUR OFF-SITE PARKING AREAS.
THE ONLY CONVERSATION ABOUT A PARKING DECK AT THIS STAGE WOULD BE FOR PURE 16 OR CRUISE TERMINAL 16.
MICHAEL BOUVIER: NOT THAT YOU BRING THAT UP, DIDN'T YOU HAVE ENGINEERING DONE ON THAT ALREADY? RODGER REES: WE'VE HAD ON 16, YES.
MICHAEL BOUVIER: YOU'VE ALREADY STARTED THAT AND WE DON'T KNOW ANYTHING ABOUT IT.
DID YOU ALREADY TAKE OUT A LOAN TO START THIS CONSTRUCTION? RODGER REES: NO.
YOU HAVEN'T GOTTEN ANY MONEY OR ANYTHING LIKE THAT? RODGER REES: WE'RE PAYING FOR IT OUT CASH FLOW.
MICHAEL BOUVIER: THAT'S ALL FOR ME, MAYOR.
[NOISE] AGREEMENT? RODGER REES: IT'S 17 YEARS PLUS A FIVE-YEAR OPTION.
BRIAN MAXWELL: SO 17 YEARS, BUT WE'RE GOING OUT FOR BONDS FOR 20? BUT WE'VE DONE AN ADEQUATE COVERAGE? RICHARD ACOSTA: OH YEAH, MORE THAN ADEQUATE.
THE AVERAGE LIFE OF THOSE BONDS ARE BASICALLY IT'S LIKE 12.5 YEARS, THE AVERAGE LIFE BECAUSE YOU'RE GOING TO PAINT PRINCIPAL AND ASK PEERS.
HARRY MAXWELL: I RAN A QUICK CALCULATION, JUST THAT TO PLAY WITH THE NUMBERS AND BASED ON THE NUMBER OF PASSENGERS WE HAVE SO FAR THIS YEAR, THEY'RE BASICALLY PAYING 88 PERCENT VERSUS 12 FOR US.
THAT MEANS THEY'LL AMORTIZE THAT DID A LOT QUICKER THAN.
FIRST TERM SHOULD HAVE PAID OFF.
DAVID COLLINS: THIS IS NOT GOING TO BE THE FIRST TIME YOU ARE GOING TO COME TO US AND YOU'VE ALREADY MENTIONED THAT AND I THINK ONE OF THE IMPORTANT THINGS TO DO AND MAKE SURE THAT YOUR HOUSE IS IN ORDER.
I LISTENED TO THE FINANCE COMMITTEE MEETING THIS WEEK AND THERE WERE SOME QUESTIONS ABOUT A MISSING LINK OR SOMETHING LIKE THAT WHERE THE RELATED SOME FUNDS AND THIS CHECKS.
MARTIN MURCHISON: ACTUALLY THERE WASN'T ANY MISSING LINK CHATS.
THERE WAS A CORRUPTED LINK, ONE-PAGE ON A PRE-SALES.
RODGER REES: MY SKY IS FALLING, THIS IS WHAT WE HEAR FROM THE SAME GROUP EVERY TIME THE SKY IS FALLING AND NONE OF IT'S TRUE.
DAVID COLLINS: I JUST WANT TO MAKE SURE YOUR HOUSE IS IN ORDER BECAUSE.
JOHN PAUL LISTOWSKI: THE BEST WAY TO QUASH ALL THOSE CRITICISMS IS TO BE TRANSPARENT AND AND GET THAT INFORMATION OUT THERE.
RODGER REES: THE INFORMATION IS THERE.
RICHARD ACOSTA: THAT'S WHY I STOOD IN THIS FINANCE COMMITTEE AND SAID THIS IS A MESS.
BRIAN MAXWELL: IT WAS PURPOSELY PUT ON THE FINANCE AGENDA TO DRESS.
RICHARD ACOSTA: THIS HAS HAPPENED FOR 20 YEARS.
HARRY MAXWELL: WHERE WERE YOU GOING WITH THAT? BRIAN MAXWELL: NO.
I JUST WANT TO MAKE SURE THAT THE GUYS ON EITHER SIDE OF HIM, MR. REECE AND THE CHAIRMAN, ARE FULLY AWARE OF THE FINANCIAL CONDITION OF THE PORT AND THE OPERATIONS OF IT, FINANCIAL MANAGEMENT OF IT BECAUSE IF YOU'RE GOING TO COME IN ONCE WITH $50 MILLION AND ASK FOR DEBT AND THEN TURN AROUND NEXT YEAR OR YEAR AFTER THAT THEN WANTING TO FUND MORE, I JUST WANT TO MAKE SURE THAT WE'VE GOT EVERYTHING LINED UP.
[04:55:01]
RODGER REES: WE GIVE THAT INFORMATION TO THE PUBLIC.JOHN PAUL LISTOWSKI: THAT TRANSFER YOU CAN COME WITH AN AUDIT.
I KNOW YOU ALL DO AN ANNUAL EXTERNAL AUDIT AND I WAS LOOKING AT YOUR NUMBERS HERE AND ALL THAT.
THEN NEXT YEAR, WHERE DO YOU GO THROUGH AN AUDIT ON PROCUREMENT? I DON'T FORGOT WHAT THE SCHEDULE WAS.
HARRY MAXWELL: WE'VE ALREADY MET WITH THE LENS, ALREADY, TALKED ABOUT IT.
[OVERLAPPING] WELCOME ANYTIME HE WANTS TO COME OVER THERE SO LET'S GET THAT STRAIGHT.
IF GLENN WANTS TO COME LOOK AT THE BROKEN LINK, YOU CAN COME LOOK AT THE BROKEN LINK.
I KNOW YOU ALL PEOPLE USE SPREADSHEETS, KNOW THAT THE FORMULA THAT WE USED FOR LEAD ONE CELL FORMULA MIGHT GET MESSED UP.
BUT YOU CAN LOOK AT THE LINK IF YOU'D LIKE TO THAT'S FINE.
IT'S IN GLENN OVER MANAGEMENT MANAGEMENT.
MY POINT IF SCENT GLAND OVER IF THAT WOULD MAKE EVERYBODY HAPPY TO ONE.
THE OTHER THING THOUGH, IS WE GIVE MORE INFORMATION AT OUR MEETINGS, I THINK THAT ANY ORGANIZATION IN THE CITY ARE BOOKS ABOUT THIS THICK.
IT'S GOT EVERY CHECK WE WROTE, EVERY CREDIT CARD, IT'S GOT EVERYTHING IN THERE AS YOU CAN IMAGINE, AND MONTHLY PUT OUT THAT KIND OF INFORMATION.
YOU MIGHT HAVE A MISTAKE IN IT IF YOU GO THROUGH IT.
ONE LITTLE SMALL THING WE BLOW IT UP AND SO ON THE MISSING LINK TO GET IT STRAIGHT, THAT WAS A CASH DISBURSEMENTS BY MONTH.
EVERY MONTH THEY WERE CORRECT.
WHEN THEY WROTE IT FORWARD TO GO TO 23, THE MOUNTAIN SAID JANUARY THROUGH DECEMBER HAD A DIFFERENT AMOUNT BECAUSE IT CAME FROM A DIFFERENT SPOT BUT GLEN SENT OVER TO VERIFY THAT.
MICHAEL BOUVIER: WHAT ABOUT ALL THESE VOIDED CHEQUES? [OVERLAPPING] THESE ARE LIKE $1.3 MILLION CHEQUES.
MARTIN MURCHISON: WE AT TIMES HAVE TROUBLE PRINTING CHEQUES SOME OF THE CHEQUES GO OUT AS WIRES AND IF WE HAD A $1.2 MILLION CHEQUES THAT WAS VOIDED, I WOULD HAVE TO LOOK AT THE CHEQUES NUMBER, BUT I'LL BE HAPPY TO TELL YOU WHY WE'VE ALREADY DONE.
BRIAN MAXWELL: YOU DON'T HAVE ANY TOPIC.
RODGER REES: I CAN'T TELL YOU WHAT.
WE RECONCILE BANKS JUST LIKE EVERYBODY ELSE IN THIS ROOM, DOES.
UNDERSTAND UP IN FRONT OF OUR BOARD MEETING SAYING, YOU NEED TO RECONCILE YOUR BANKS.
MY GOSH, WE RECONCILE OUR BANKS EVERY MONTH, IS IT ALMOST WEEKLY? MARTIN MURCHISON: SOMETIMES WE AVOID CHEQUES BECAUSE OF THE WAY THEY PRINTED ON THE PRINTER.
YOU ALL HAVE BUSINESSES AND PRINT CHEQUES.
SOMETIMES THE PAPER DOESN'T LINE UP.
HARRY MAXWELL: A CHECK MISSING IN THE REGISTER SOMETHING ELSE.
RODGER REES: A VOIDED CHECK THAT THAT PASSES THE BANK IS A BIG DEAL.
BRIAN MAXWELL: IF WE COULD PROBABLY SEND YOU THIS THE ENTIRE AFTERNOON.
I'M GOING TO WIND THIS UP WITH THE BOND PROPOSAL HERE.
ARE THERE QUESTIONS CONCERNING THIS BOND PROPOSAL? RICHARD ACOSTA: IS THE CARNIVAL CRUISES ONLY JUBILEE THAT WE'RE GETTING THIS OR DOES THE REST OF THE CRUISE SHIPS GIVING US TARIFF OR ALL OF THEM? RODGER REES: ALL OF THEM ARE STARTING IN DECEMBER ON CARNIVAL WHEN THE JUBILEE COMES IN, THE CONTRACT CALLS FOR THEM TO START PAYING INCREASE RATES AND START PAYING THE $0.25 ON ALL THE SHIPS.
BRIAN MAXWELL: BUT THE JUBILEE ARRIVING IS WHAT TRIGGERS THAT AND PRINT COMING IN BECAUSE THAT'S WHAT'S TRIGGERED THE FINANCE.
BRIAN MAXWELL: HARRY, RODGER, WE KEEP TALKING ABOUT THIS $0.25.
DID YOU SAY? RODGER REES: $0.50.
I'M JUST THINKING OF SOMETHING ELSE BROUGHT UP THE JUBILEE.
JOHN PAUL LISTOWSKI: THAT CONTRACT IS NOT SPECIFICALLY TIED TO THAT BOAT, CORRECT? RODGER REES: NO.
JOHN PAUL LISTOWSKI: THE CONTRACT BECAUSE WE'RE SPENDING $50 MILLION ON THE TERMINAL PROBABLY NOT ALL OF THAT BECAUSE OF THE JUBILEE AND THE SIZE OF THE JUBILEE AND STUFF LIKE THAT BUT JUBILEE LEAVES AND GO SOMEPLACE ELSE AND THEY BRING IN ANOTHER BOAT.
RODGER REES: THEY WILL AND THEY'RE OBLIGATED.
JANELLE WILLIAMS: THEY ARE OBLIGATED TO PAY 83 PERCENT OF THE TERMINAL.
BRIAN MAXWELL: NO MATTER WHAT SHIPS THERE? RICHARD ACOSTA: THAT IS CORRECT.
BRIAN MAXWELL: ANOTHER THING, THAT ROOF, $4 MILLION FOR ROOF.
RODGER REES: WE'RE DOING SOME STUFF, HAD BEEN DEFERRED FOR 25 YEARS, 20 YEARS AND SO WE'RE TAKING THIS OPPORTUNITY TO FIX THINGS THAT NEED TO BE FIXED, BECAUSE WE GOT LONG-TERM CONTRACT AND LIKE HARRY SAYS, IN SIX YEARS, WHAT HAPPENS, WE MAY COME BACK AND RENEGOTIATE A CONTRACT.
THEY MAY WANT TO BRING YOU, THEY WANT TO BRING OTHER SHIPS IN.
[05:00:01]
THE ONE THING ABOUT THE CARNIVAL CONTRACT IS THAT APPLIES TO ALL CARNIVAL CORPORATION SHIPS, WHICH IS ALSO PRINCESS AND IT'S ALSO CALLED AMERICA.IT'S ALL THEIR BRANDS SO ANY OF THOSE BRANDS THAT COME IN.
I WOULD SAY ANY SHIP IS NOW COMING TO GALVESTON IS PAYING THE PARKING FEES TO YOU GUYS IS PAYING THOSE PASSENGER SERVICE CHARGES.
BRIAN MAXWELL: WHEN WOULD THE BOND DOCUMENTS COME TO THE CITY FOR THEM TO REVIEW? HARRY MAXWELL: THIS WILL BE AUGUST THE 10TH.
BUT WE NEED THEM SOONER THAN THAT.
RODGER REES: WE'LL TALK A LITTLE ABOUT THAT.
THE OTHER DOCUMENTS THAT WILL HAVE.
RICHARD ACOSTA: WE HAVE A PRELIMINARY OFFICIAL STATEMENT THAT BASICALLY PUTS TOGETHER A PROSPECTUS FOR ALL INVESTORS.
I DON'T HAVE THE FINANCIALS, I DON'T HAVE ALL THE INFORMATION ABOUT THE POOR, ABOUT THE CITY.
THEY DON'T REALLY HAVE OVERLAPPING TAXING.
SO IT'S A BIG DOCUMENT THAT WE'VE BEEN WORKING ON FOR QUITE SOME TIME.
WE'VE BEEN WORKING WITH THE CITY.
ONE THING THAT I NEGLECTED TO SAY IS THAT ON THE FINANCING PLAN, WE'VE WORKED WITH THE CITY FOR SEVERAL MONTHS AND SHOWING MORE PLAN.
WORKED WITH THE FINANCIAL ADVISOR, WORKED WITH THE FINANCE DEPARTMENT.
WE HAVE SHARED WITH THEM OUR RATING PRESENTATION, WE HAVE SHARED WITH THEM OUR PRELIMINARY OFFICIAL STATEMENT.
THEY'VE BEEN LOOKING AT THAT [OVERLAPPING].
BRIAN MAXWELL: BARON YOUR DISCLOSURE COUNCIL FOR THE CITY IS INVOLVED WITH THIS FOR 3, 4, 5 MONTHS, AT LEAST.
RICHARD ACOSTA: SINCE THE BEGINNING OF THE YEAR [NOISE] THEN ONE OTHER THING IS THAT THE FINANCIALS OR THE NUMBERS THAT WE'RE USING OR LAST YEAR, END OF 2022.
SO WE DON'T FACTOR IN ANY REVENUE INCREASES.
THE NUMBER, THE COVERAGES THAT WE'RE LOOKING AT, ARE JUST BASED UPON LAST YEAR'S NUMBERS.
BRIAN MAXWELL: LET ME MENTION.
IF WE'RE GOING TO POST THIS ON AUGUST 2ND FOR THE AUGUST 10TH MEETING, WE WILL NEED THAT DOCUMENTS TO PUT IN OUR PACKET.
JOHN PAUL LISTOWSKI: WE NEED THE BOND DOCUMENTS.
HARRY MAXWELL: BECAUSE WE ALREADY HAVE ANOTHER BOND DOCUMENT.
RICHARD ACOSTA: YEAH, WE HAVE IT.
[OVERLAPPING] WE WILL GIVE YOU ONE AND VERY FINAL CONDITION.
NORMALLY, WHAT HAPPENS IS WE HAVE WE STILL HAVE TO HAVE [BACKGROUND] [OVERLAPPING] DUE DILIGENCE.
RICHARD ACOSTA: WE'VE SENT THE COPIES TO THE CITY.
THEY'VE BEEN ON THEIR OWN AS FAR AS ON THE DISTRIBUTION.
THEY WERE AWARE OF THAT DOCUMENT, BUT WE DON'T HAVE IT IN FINAL FORM YET.
RODGER REES: WE'LL BE FILLING FORM UNTIL WHEN IT HAPPENS BECAUSE EVERYTHING WILL BE CURRENT UP TO THAT POINT.
CRAIG BROWN: BRIAN, BEFORE WE LEAVE THE TABLE HERE, WHEN DO YOU NEED THE DOCUMENTS? WHAT TYPE OF DOCUMENTS DO YOU NEED? [LAUGHTER].
FEMALE_2: THE SOONER, THE BETTER.
OBVIOUSLY, WE'RE CLOSE THIS SECOND ALREADY.
SO I WOULD SAY, WHAT'S THE FIRST THING THAT WE FINAL? MARIE ROBB: TOMORROW, YOU NEED THEM TOMORROW.
FEMALE_2: 31ST? RICHARD ACOSTA: WE'RE STILL GETTING COMMENTS IN FROM VARIOUS PARTIES AND SO WHAT WE TYPICALLY DO IS WE SEND IT OUT, EVERYBODY PROVIDES COMMENTS, WE INCORPORATE OR SEND IT RIGHT BACK OUT.
IT'S CONSTANTLY, GETS CORRECTED AND REFINED AND UPDATED ON A WEEKLY BASIS.
CRAIG BROWN: WE CAN SEND THE FIRST DRAFT? RICHARD ACOSTA: EXACTLY.
CRAIG BROWN: TO WHAT POINT? RICHARD ACOSTA: UNTIL YOU APPROVE IT THEN WE WOULD THEN AT THAT POINT, WE WILL GO AHEAD AND PUBLISH IT AND THEN ONCE WE PUBLISH IT, THEN IT BECOMES FINAL.
IT'S SOMETHING THAT THE CITY, IF THEY WANT US TO MAKE CHANGE.
CRAIG BROWN: WHAT'S UP UNTIL THE VOTE? RICHARD ACOSTA: WE KNOW WE CAN'T POST IT.
HARRY MAXWELL: BUT NOTHING CHANGES.
BRIAN MAXWELL: THIS IS COMMON WITH ALL BONDS.
IT'S THE SAME WITH YOUR BONDS.
RICHARD ACOSTA: THAT'S WHY I DON'T KNOW WHY WE COULDN'T GET IT SOONER.
VICTOR PIERSON: WE FIND OFFERINGS TO CATCH THE ERRORS, SEND IT BACK TO GET AMENDED THEN WE GET LET'S CALL IT THE OFFICIAL STATEMENT, WHICH IS PART OF THE BOND OFFERING THAT IS APPROVED BY COUNCIL, AND IT'S SUBMITTED TO THE AG.
CRAIG BROWN: BRIAN, I NEED TO GET IT.
WHAT DOCUMENTS DO YOU NEED AND WHAT [OVERLAPPING]? BRIAN MAXWELL: WE'D LIKE THE POS AND IT'S MOST FINAL FORM ON JULY 31ST.
CRAIG BROWN: IS THAT WORK FOR YOU GUYS? BRIAN MAXWELL: FROM OUR STANDPOINT, IS FILED TODAY AND THEN ANYBODY MAKES IT AS IT'LL BE PROMISED.
WHAT THE CHANGES THAT ARE BEING MADE ARE.
OUR ADDRESS IS 123 INSTEAD OF A PO BOX.
THERE'S NOTHING MATERIAL THAT CHANGES FROM THIS POINT FORWARD, REALLY.
[05:05:04]
I'M USED TO DOING THIS, I KNOW HOW IT WORKS, REALLY.NOTHING IS FINAL UNTIL IT GOES TO THE AG AND IT'S FINAL.
YOU NEED THE POS BY JULY 31ST? MONDAY.
THEN, WE'RE GOING TO POST ON AUGUST 2ND.
FEMALE_2: THAT'S OUR DEADLINE.
BRIAN MAXWELL: COUNCIL WILL GET IT ON THIS ONCE THEY GET THE MATERIAL AND ON THE SECOND.
NOW, IF YOU'D LIKE, WE CAN SEND THE COUNCIL, SEND IT TO US [OVERLAPPING] RIGHT NOW.
I JUST HATE HAVING BECAUSE THINGS ARE GOING TO CHANGE AND THE MORE VERSIONS YOU HAVE FLOATING AROUND.
LET US GET OUR VERSION ON MONDAY.
WE WILL DISTRIBUTE IT ON MONDAY TO COUNSEL WITH THE AGENDA, AND THEN ANY SUBSEQUENT CHANGES LET'S FILE THEM SO THAT WAY YOU GUYS CAN THROW ONE AWAY AND GET A NEW AND OTHERWISE THERE'S GOING TO BE 50 COPIES OF THIS FLOATING AROUND.
NOBODY IS GOING TO HAVE THE RIGHT THING.
CRAIG BROWN: BRIAN, YOU'RE COMFORTABLE WITH THAT, AND GENTLEMEN.
I WANTED TO THANK THE PORT FOR BEING HERE.
I WANT TO SAY THIS ABOUT THE PORT.
FOR THOSE THAT KNOW THE PORT HERE, NOT TOO MANY YEARS AGO, THEY HAD VIRTUALLY NO NET REVENUE GOING ON OVER THERE.
IT WAS QUITE A STRUGGLE WITH THE PORT.
WE NOW HAVE A PORT THAT'S VERY VITAL, VERY ACTIVE.
WE HAVE A PORT THAT HAS AN UNBELIEVABLE FUTURE AHEAD OF IT OVER THERE.
I KNOW RODGER AND HIS CREW AND ALL THE PEOPLE SITTING AROUND THIS TABLE HAVE WORKED HARD TO MAKE THAT MOVE IN THAT DIRECTION.
I THINK YOU KNOW THE FEELINGS OF OUR COUNCIL HERE MOVING FORWARD.
BUT I WANTED TO THANK YOU FOR ALL YOU'VE DONE, YOU'VE DONE A GREAT JOB OVER THERE.
ANYTHING YOU WANT TO SAY, HARRY? HARRY MAXWELL: NO, I'M GOOD.
I THINK I LOOK FORWARD TO MEETING AT LEAST ONCE A QUARTER WITH CITY COUNCIL, SO WE CAN HAVE SOME [LAUGHTER] INTERACTION.
CRAIG BROWN: [OVERLAPPING] THANK YOU.
[OVERLAPPING] I ACTUALLY WANT TO ADJOURN THIS MEETING HERE.
CRAIG BROWN: WE WOULD LIKE YOU TO DO THAT.
BRIAN MAXWELL: I'M TRYING TO DO THAT.
CRAIG BROWN: ITEM 3G PLEASE MA'AM.
[3.G.Discussion Of Monthly Reports On The Port And Park Board From The Council Liaisons (Brown - 5 Min)]
JANELLE WILLIAMS: CRAIG BROWN: I'VE ALREADY MENTIONED THAT.WE WILL HAVE THAT AS A ROUTINE ITEM ON OUR AGENDA FROM THE PARK BOARD, AND FROM THE PORT COMING FORWARD ON EACH ONE OF OUR MEETINGS.
IS THERE ANY QUESTIONS ON THAT? RICHARD ACOSTA: WHAT'S THE FREQUENCY? MONTHLY, NEVER MIND, SORRY.
I SEE THE WORD THERE [LAUGHTER] [BACKGROUND].
CRAIG BROWN: MONTHLY [LAUGHTER] CRAIG BROWN: IF WE'LL THAT ON EVERY COUNCIL AGENDA, IF WE WOULD EVER.
WE HAVE GONE THROUGH ALL THE ITEMS ON OUR AGENDA.
BRIAN MAXWELL: THANK YOU, GUYS.
SEE YOU TONIGHT.
* This transcript was compiled from uncorrected Closed Captioning.