THIS IS A GOOD KNOCK AROUND. [00:00:02] YEAH, THAT'S REALLY HELD UP. ALL RIGHT. GOOD MORNING, EVERYONE. [1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER (Room 204)] IT IS 9 A.M. IT IS MY HONOR TO WELCOME EVERYBODY HERE THIS MORNING TO THE AUGUST 10TH CITY COUNCIL WORKSHOP. AND WE WILL HAVE A LITTLE DIFFERENT AGENDA THIS MORNING. WE'RE GOING TO FOLLOW THIS WORKSHOP IMMEDIATELY WITH OUR REGULAR ACTION ITEM MEETING FOR CITY COUNCIL TODAY. WE WILL NOT HAVE A 5 P.M. AFTERNOON CITY COUNCIL MEETING. I WANT TO WELCOME COUNCIL. THANK YOU FOR BEING HERE. THOSE IN THE AUDIENCE STAFF, THANKS FOR BEING HERE AND FOR THOSE THAT MAY BE WATCHING IN THE COMMUNITY, GLAD TO HAVE YOU WITH US THIS MORNING. WE DO HAVE A QUORUM. LET'S HAVE A ROLL CALL, PLEASE. MAYOR BROWN, MAYOR PRO TEM COLLINS PRESENT COUNCIL MEMBER. LEWIS PRESENT COUNCIL MEMBER FINKLEY PRESENT COUNCIL MEMBER. BOUVIER COUNCIL MEMBER. ROBB PRESENT AND COUNCIL MEMBER. LISTOWSKI HAS NOT ARRIVED YET. HE IS HERE NOW. HE'S JUST COMING IN THE DOOR. SAY, HERE, HERE. THANK YOU. GOOD MORNING, JOHN. GOOD MORNING. SORRY I'M LATE. VERY GOOD. ALL RIGHT, LET'S MOVE TO OUR DISCUSSION ITEMS, IF WE COULD, PLEASE, JANELLE. AND THIS IS A VERY IMPORTANT DISCUSSION ITEM COMING UP IN ITEM THREE A JANELLE, IF YOU COULD READ THAT, PLEASE. [3.A. Recognition Of The Retirement Of City Of Galveston Employee David Ewald] RECOGNITION OF THE RETIREMENT OF CITY OF GALVESTON EMPLOYEE DAVID EAGLE. YOU KNOW, I GET A LOT OF I GET A LOT OF EMAILS AND COUNCIL DOES TO THANKING THANKING COUNCIL AND AND AND EACH INDIVIDUAL COUNCIL MEMBER FOR THE POSITIVE ACTIONS THAT ARE GOING ON IN THIS CITY. AND IT TAKES ALL DIFFERENT FORMS AND ALL DIFFERENT TOPICS AND THE COMMUNITY COMMENTS ON THIS QUITE A BIT. I'M THE FIRST TO SAY THAT I CAN'T REALLY TAKE THAT CREDIT. IT IS OUR INCREDIBLE STAFF THAT MAKES THIS CITY SUCH A POSITIVE INFLUENCE FOR THOSE THAT ARE VISITING AND FOR THOSE THAT LIVE HERE. AND THIS MORNING WE'RE GOING TO HONOR SOMEBODY THAT STANDS FOR THAT PARTICULAR QUALITY OF REPRESENTING THIS CITY IN SUCH A POSITIVE LIGHT. AND THAT IS DAVID E WHILE DAVID, YOU'VE AS LONG AS I CAN REMEMBER YOU'VE BEEN HERE. SO WE'RE SO IT'S KIND OF A HAPPY, SAD TIME FOR US. BUT TIM, YOU HAVE SOME THINGS TO SAY. GOOD MORNING, MAYOR. GOOD MORNING. DO YOU WANT TO COME FORWARD? WOULD YOU LIKE TO PLAY? OKAY. OKAY. ALL RIGHT. WELL, VERY GOOD. GOOD MORNING, MAYOR AND COUNCIL. I'M CONTINGENTS WITH THE DEVELOPMENT SERVICES DEPARTMENT AND DAVID WORKS IN DEVELOPMENT SERVICES DEPARTMENT AS A BUILDING OFFICIAL. HE'S AN INSTITUTION IN THIS CITY, HAS BEEN FOR MANY, MANY YEARS. SO I'M GOING TO READ THE PROCLAMATION. WHEREAS DAVID HILL EXCUSE ME, DAVID EWALD GRADUATED FROM BALL HIGH SCHOOL IN 1978. HE MARRIED IN 1980 AND AT THE SAME YEAR BEGAN WORK FOR THE CITY OF GALVESTON AS A CODE ENFORCEMENT OFFICER UNTIL 1984, AT WHICH TIME HE LEFT THE CITY TO SEEK OTHER ENDEAVORS. WHEREAS IN JANUARY OF 1986, HE RETURNED TO THE CITY OF GALVESTON, HOLDING DIFFERENT POSITION AS A CARPENTER IN THE PARKS AND RECREATION DEPARTMENT CODE ENFORCEMENT OFFICER, AND THEN EVENTUALLY TO A BUILDING INSPECTOR UNTIL THE YEAR 2000, WHEN HE WAS PROMOTED TO BUILDING OFFICIAL AND FLOODPLAIN MANAGER, HOLDING THIS POSITION TO THIS DAY. WHEREAS IN HIS 23 YEAR CAREER AS A BUILDING OFFICIAL, HE DIRECTLY AND INDIRECTLY APPROVED AN ESTIMATE ESTIMATED NUMBER OF 4000 NEW HOMES AND OVER 500 NEW BUSINESSES IN THE CITY OF GALVESTON. AND THAT'S JUST NEW CONSTRUCTION, PROBABLY TRIPLE THAT AMOUNT IN RENOVATIONS AND OTHER WORK. WHEREAS DAVID'S GREATEST CHALLENGE WERE HURRICANE RELIEF IN 1983 AND HURRICANE IKE IN 2008. WE'RE CALLING FINALLY, AS ALL OF THE CITY WORKERS JOINED US TO HELP CITIZENS THROUGH THESE CATASTROPHES. AND THEREFORE, WE AND WE, THE MAYOR AND CITY COUNCIL OF THE CITY OF GALVESTON, EXPRESSED APPRECIATION TO THE LONG, DEDICATED 41 YEARS OF SERVICE OF DAVID NIEWALD WITH THE CITY. WE WISH HIM THE BEST IN HIS RETIREMENT AND FUTURE ENDEAVORS. WE HERE, WE DO HEREBY PROCLAIM THURSDAY, AUGUST 10TH, 2023, AS DAVID EWALD DAY. [00:05:08] WHEREOF WITNESS MY HAND AND SEAL OF THE CITY OF GALVESTON THIS 10TH DAY OF AUGUST 2023. GREG BROWN. YOU KNOW, AND IF ANYBODY WANTS TO SEE PICTURES OF A PROFESSIONAL BAT BOY WHEN HE WAS A LITTLE BOY, I HAVE THESE PICTURES OF HIM. AND ACTUALLY, IF YOU LOOK AT THE PICTURE, THE COACH LOOKS REMARKABLY SIMILAR TO MR. EWALD. IT WAS HIS DADDY. SO FANTASTIC. ABSOLUTELY. ABSOLUTELY. DAVID, THANK YOU FOR ALL YOUR SERVICE. WE APPRECIATE YOU BEING DONE. WHAT? MR. HAIR DROPPED OFF. YES, WE WILL. I BELIEVE WE'RE GOING TO PRESENT THAT TOMORROW AT HIS PARTY. SO I WOULD LIKE TO FORMALLY INVITE EACH OF YOU AND ANYBODY IN THE COMMUNITY WHO IS KNOWN, DAVID, WHO HAS WORKED WITH DAVID TO ATTEND A PARTY HERE IN THIS ROOM TOMORROW AT 130. IT WILL ALSO BE CATERED MAGNANIMOUS MAGNANIMOUSLY BY JOHNNY AND HIS GROUP. JOHNNY CALLED TO THANK DAVID FOR ALL OF HIS HARD WORK. AND WE'RE GOING TO MISS YOU, BUDDY. DAVID, WOULD YOU LIKE TO SAY A FEW WORDS, SIR? THANK YOU. COUNCIL CITY MAYOR. CITY MANAGER. MAYOR. PRETTY NICE RECOGNITION. OH, WE'RE STARTING HERE AGAIN. AS HE SAID, GO TO FOURTH AND CARPENTER AND WE GO ON TO BUILDING INSPECTOR AND BUILDING OFFICIAL FLOODPLAIN. AND WE ALSO JOINED THE CRS PROGRAM IN 2014, WHICH HAS BEEN A BIG BENEFIT TO THE CITIZENS. BUT I WANT TO THANK YOU GUYS AND I WANT TO THANK MY WIFE, PAULA. YAY! YAY. AND A GREAT RIDE. AND AGAIN, I APPRECIATE YOU GUYS. I WAS GOING TO BRING UP THE STUFF THAT HE'S ALREADY MENTIONED, BUT I WANT TO BRING IT UP AGAIN. BUT YOU GOT A GREAT TEAM HERE GOING THROUGH IKE AND ALICIA. THAT WAS AMAZING HOW EVERYBODY WORKED TOGETHER AS A TEAM TO PUT THE ISLAND BACK TOGETHER. IT WAS JUST IT WAS ONE OF THE FIRST PEOPLE I MET AFTER I WAS AT THE COUNTY AND HE WAS WORKING OUT OF A BACK ROOM AT THE JUSTICE CENTER THAT DAY. IT WAS PANDEMONIUM, BUT DAVID HAD IT UNDER CONTROL, SO IT'S FANTASTIC. THE CENTRAL PROFESSIONAL IN EVERY ASPECT OF THIS JOB IS FASCINATING. THANK YOU FOR ALL YOU'VE DONE. THANK YOU, MAYOR. CAN YOU WAIT ONE SECOND? I'LL DO THAT AGAIN, MAYOR. SOMEBODY PLEASE DO THIS TODAY. I'LL DO THAT IN HERE. ALL RIGHT. I'LL TAKE ONE MORE. BARBARA? YES. YES. OH, NO. YOU'RE IN HERE, TOO. OH, GREAT. THANK YOU. DAVID DOES HAVE A COLLECTION OF THOSE GOD AWFUL ORANGE SHIRTS THAT HE WEARS. THANK YOU ALL VERY MUCH. THANK YOU, DAVID. THANK YOU FOR YOUR WORK. WELL, THAT'S A HAPPY, SAD TIME. IT'S OUR LOSS AND HIS WIFE'S GAIN. SO WHAT DO YOU THINK? WE'LL SEE WHAT PAULA THINKS ABOUT THAT. CHECK WITH HER ABOUT THAT. VERY GOOD. LET'S MOVE TO ITEM THREE B, PLEASE. [3.B. Clarification Of Agenda Items - This Is An Opportunity For City Council To Ask Questions Of Staff On Agenda Items (20 Min)] NELLIE. ITEM THREE, B, CLARIFICATION OF AGENDA ITEMS. THIS IS AN OPPORTUNITY FOR CITY COUNCIL TO ASK QUESTIONS OF STAFF ON AGENDA ITEMS. WELL, THIS IS ON OUR AGENDA, OF COURSE. EVERY MEETING WE HAVE A VERY SHORT AGENDA FOR THIS FOLLOWING THIS MEETING. BUT LET'S START WITH COUNCILMAN FINKLEY. COUNCILMAN FINKLEY. ANY QUESTIONS, SIR? NOT AT THE MOMENT. I THINK I HAD PREVIOUS CONVERSATIONS ABOUT SOME QUESTIONS, AND I BELIEVE COUNCIL MEMBER BOUVIER IS GOING TO ADDRESS THEM. ALL RIGHT. THANK YOU. YOU'RE WELCOME. PRESSURE'S ON. UH OH. UH, DAVID COLLINS. DAVID. NO, I THINK I'M PRETTY CLEAR. I KNOW WE'RE GOING TO DISCUSS THE BUDGET IN MORE DETAIL AND A COUPLE OF THESE OTHER THINGS THAT ARE ON THE MENU, SO I THINK I'M GOOD FOR. VERY GOOD, JOHN. OKAY, FOR NOW, I'LL PROBABLY DISCUSS THIS SOME OF THIS STUFF IN THE MEETING. AND IF YOU HAVE ANY QUESTIONS, MIKE'S GOING TO SPEAK FOR YOU. MIKE'S GOT IT COVERED NOW. I'M NERVOUS. COUNCILMAN COUNCILWOMAN LOUIS. I THINK I'M OKAY. [00:10:02] VERY GOOD, MIKE. ANYTHING, SIR? UM. 8CHC WILL THIS BE MIKE? THIS PARTICULAR MIKE SHAHAN? THIS PARTICULAR TOPIC ON EIGHT C THAT'S NOT PART OF YOUR WORKSHOP DISCUSSION. SEPARATE ITEMS. THAT'S WHAT I THINK. GO RIGHT AHEAD. SO LOOKING AT 26 ACRES OF LAND THAT THEY WANT TO TURN AROUND AND SELL, UH, THE REPORT DOESN'T HAVE A PICTURE OF WHERE THE LAND IS OR OH, I APOLOGIZE. IT'S ON THE WEST SIDE OF THE AIRPORT, NORTH OF THE GOLF COURSE. THERE'S A 40 OR ABOUT A 40 FOOT WIDE CANAL BETWEEN THE AIRPORT PROPER. AND THAT THIS IS THE ONE ON THE CRASH BOAT BASIN WE'VE TALKED ABOUT BEFORE. AM I RIGHT? YEAH. CAN WE? YEAH. IS THAT 26 ACRES? YEAH. YEAH, IT'S JUST. JUST NORTH OF THE PUBLIC GOLF COURSE. RIGHT. THE CITY COUNCIL APPROVED THE. WELL, THEY HAD TO APPROVE THE RELEASE ONCE BEFORE THE CITY WAS GOING TO BUY IT. SITUATIONS CHANGED IN THE CITY. WASN'T ABLE TO BUY IT AT THE TIME. SO. SO IT'S COMING BACK NOW TO, IF NOT APPROVED, TO SELL IT TO THE AUCTION OR SOMETHING LIKE THAT AND THAT FFA OR THE F FAA AA DOESN'T CONSIDER THAT LIKE A CRASH BOX OR. NO, IT'S IT'S IT'S NOT EVEN DESIGNATED AS AVIATION USE TO BE TO BE HONEST WITH YOU MIKE TO IT KIND OF HARKENS BACK TO A TIME RUNWAY. WE USED TO HAVE A RUNWAY HERE. WE DON'T HAVE THAT RUNWAY ANYMORE. OKAY PYRAMIDS ON. SO YOU I THINK YOU MAY BE CORRECT. AT ONE POINT IN TIME IT WASN'T A CRASH BOX, BUT IT WAS PART OF THE AREA. BUT WE DON'T NEED IT ANYMORE BECAUSE ALL THE RUNWAYS ARE ON THERE. OKAY. IF I LET ME LET ME REFRESH. REFRESH EVERYONE'S. THANK YOU. REFRESH EVERYONE'S MEMORY. THREE OR SO YEARS AGO, WE WE DISCUSSED THIS. WE TALKED ABOUT BUYING IT. WE BOUGHT. AND THE THING THAT WAS SUCH A BIG. THE LINE GOES DOWN HERE. BUT THE THING THAT THAT SLOWED US DOWN AT THE TIME, IT REQUIRED FAA APPROVAL. AND SO MIKE WENT OFF TO GET FAA APPROVAL TO RELEASE THE PROPERTY. RIGHT. SO, I MEAN, COUNSELOR, I DON'T RECALL. DID WE VOTE BEFORE TO RELEASE THIS PROPERTY OR TO SELL IT? I DON'T BELIEVE IT ACTUALLY WENT TO THE VOTE, NO. OKAY. IT WAS THE PROPERTY. GO AHEAD AND PURSUE THE RELEASE OF THE PROPERTY. BUT THEN WE NEVER ACTUALLY CLOSED THE DEAL. YEAH, THE PROPERTY THAT IS TO THE WEST OF THAT WE DID. WE DO. AND THE CITY OWNS THAT IN ITS ENTIRETY. 5.55 ACRES. CORRECT. THAT'S THAT LITTLE AREA IN THE MIDDLE IN 2017? THAT IS CORRECT. THAT'S ALREADY WITHIN THE ROAD SYSTEM PORTION BETWEEN TRAVEL, AIR AND PILOT. YES. YES. OH, I SEE. BECAUSE THERE'S A CONSIDERABLE THERE WAS, I THOUGHT, A CONSIDERABLE SECTION OF WETLANDS IN THIS 26 ACRE. THERE IS THERE'S ABOUT TEN POSSIBLE NOT WELL YOU KNOW WITH THE NEW BECAUSE WE HAVEN'T DELINEATED. YEAH OKAY NOW THERE IS AND THIS IS NOT PART OF THIS BUT WE OWN ANOTHER LOT OVER THERE THAT HAD A HOUSE ON IT AND WE WILL WE'RE LOOKING AT TRYING TO GET A RELEASE ON THAT AS WELL. YEAH, THERE'S ACTUALLY A WATERFRONT LOT THAT WE OWN. OKAY. IS IS THIS GOING TO BE UP FOR PUBLIC AUCTION OR PUBLIC SALE? YES. WHAT'S THE TIMEFRAME? WELL, WE'RE GOING TO BE BRINGING YOU BACK SOME DEED RESTRICTIONS PROBABLY AT THE END OF THIS MONTH FOR YOU GUYS TO VOTE ON OR SOME SALE SALE PARAMETERS. AND THEN IT WILL PROBABLY GO UP FOR AUCTION, I WOULD HOPE, SOMETIME IN SEPTEMBER. OKAY. I HAVE A SERIES OF QUESTIONS THAT JOHN HAD QUESTIONS. SO WHY ARE WHY ARE WE SEEING THIS INSTEAD OF JUST WAITING UNTIL WE HAVE ALL THAT IN PLACE? WELL, THE FAA SENT US A LETTER. IT'S JUST A WE THOUGHT WE'D GO AHEAD SINCE THEY RELEASED IT IN MAY OR JUNE, GO AHEAD AND GET IT SIGNED TO. IT'S JUST ONE STEP, JUST ONE STEP BEFORE YOU HAVE, YOU KNOW, BEFORE YOU CAN SELL IT. YEAH. IT'S JUST WE'RE JUST TRYING TO YOU KNOW, WE WERE PLANNING ON DOING IT ALL TOGETHER, BUT THE PROCESS BECAUSE YOU'RE GOING TO BRING BACK DEED RESTRICTIONS TO US. YEAH. OR SALE RESTRICTIONS. YEAH. BUT IT'S JUST TO MOVE FORWARD WITH THE RELEASE AND THEN WE'LL MOVE TO THE NEXT STEP. I'M OKAY WITH THAT. I JUST DON'T I JUST DIDN'T UNDERSTAND THE PROCESS, WHY WE WHY IT'S ON OUR AGENDA WHEN WE'RE GOING TO SEE IT AGAIN. YOU KNOW, IT'S JUST ONE IT SEEMS LIKE IT'S JUST PIECE PIECING IT TOGETHER. THIS IS ACTUALLY I THOUGHT I THOUGHT WE WERE ACTUALLY GOING TO GET DEED RESTRICTIONS. NOW, ALSO, IT SEEMS LIKE I MEAN, YOU KNOW, I'VE HAD THIS DISCUSSION WITH BRIAN AND DAN, IT SEEMS LIKE WE WOULD WANT TO DELINEATE THIS PROPERTY TO SEE IF WE COULD GET THE BEST VALUE FOR THE PROPERTY. I MEAN, WITHOUT A DELINEATION. I MEAN, I THINK THIS 1.6 IS LOW. I MEAN, THIS, THIS, THIS PROPERTY COULD BE WORTH TWICE THE AMOUNT, BUT THERE'S SUCH UNCERTAINTY ON IT WITH THE AMOUNT OF WETLANDS THAT COULD BE THERE THAT NOBODY'S GOING TO [00:15:07] PAY. IT'S ALMOST IMPOSSIBLE TO DO A WETLANDS DELINEATION WITH THE SITUATION THAT HAPPENED IN THE SUPREME COURT. THAT'S NOT I MEAN, IT TOOK US A YEAR FROM THE TIME WE GOT THE APPRAISAL WAS ON HOLD. ANY FURTHER QUESTIONS? THERE'S THE LANDOWNERS OUT THERE ALL DAY LONG THAT ARE STILL DOING DELINEATION. I MEAN, IT'S YOU KNOW, YOU COULD DO A DELINEATION. NOW, IF YOU WANT A VERIFICATION ON THE DELINEATION, THAT MIGHT BE SOMETHING DIFFERENT, TWO DIFFERENT TWO DIFFERENT THINGS THERE. SO, YOU KNOW, JUST BY GOING OUT THERE AND DOING THE DELINEATION, IT COULD BE A GOOD THING. IT COULD BE A BAD THING. I'M JUST MAKING EVERYBODY AWARE OF WHAT THE VALUE OF THE PROPERTY IS, WHAT IT COULD BE. I MEAN, I'M ALL FOR SELLING THIS PROPERTY AND THIS MONEY WOULD GO INTO THE AIRPORTS. THE 20 THE 26 ACRE SALE GOES TO THE AIRPORT. YES. IT HAS TO BE SPENT ON REVENUE PRODUCING. SO I'M NOT I'M DON'T DON'T GET ME WRONG THAT I'M NOT TRYING TO SLOW THIS DOWN OR IMPEDE THIS PROCESS. BUT I THINK THERE ARE A LOT OF THINGS THAT AREN'T IN HERE THAT COUNCIL NEEDS TO KNOW AND TO MAKE A GOOD DECISION ON HOW WE MOVE FORWARD. YOU KNOW, THIS THIS LAND TOO. AND IF EVEN IF IT WAS DELINEATED, THEN YOU GO THROUGH THAT PROCESS OF POSSIBLY MITIGATING AND USING MORE OF THAT LAND, POSSIBLY WORKING OUT SOME ARRANGEMENT ON THAT. I NOTICED IN THE DOCUMENTS, TOO, THAT I GOT THE FEELING THAT WE WERE LOCKED INTO SELLING IT FOR APPRAISED VALUE. BUT IS THAT. NO, THAT'S THE MINIMUM AMOUNT. MINIMUM AMOUNT. MINIMUM AMOUNT. OKAY. ALL RIGHT. AND I'M VERY, VERY IF I'M WRONG, MIKE, THE CITY IS NOT GOING TO BUY IT. THIS IS GOING TO BE KIND OF ALMOST A SIMULTANEOUS SALE IF WE DO IT RIGHT. AND THAT'S PART OF WHAT THE REASON WE DIDN'T DO THE DELINEATION IS BECAUSE THE FAA HAS RELEASED IT. AND DEPENDING ON HOW LONG IT TAKES TO A DELINEATION AND EVERYTHING ELSE, OUR GOAL WITH THIS, AS OPPOSED TO THE OTHER 5.5 ACRES WHERE THE CITY JUST BOUGHT IT OUTRIGHT AND WE'VE HELD IT AND WE'RE GOING TO SELL IT. IN THIS CASE, THE FAA IS RELEASED IT. WE'RE GOING TO PUT IT UP FOR AUCTION AND HOPEFULLY JUST LET LET THAT GO IN WITHOUT THE CITY HAVING TO COME UP WITH THE CASH IN THE MIDDLE TO DO ALL THAT. SO THAT'S A GOOD POINT. I'M REALLY INTERESTED IN THE DEED RESTRICTIONS AND THAT WHOLE DOCUMENT WHEN IT COMES BACK TO US, I THINK THERE'S A LOT OF INTEREST IN THIS LAND THAT COUNCIL HAS HAD IN THE PAST. SO I THINK THAT'S GOING TO BE AN IMPORTANT PART OF THIS PROCESS. THAT'S THE ONLY REASON IT'S MOVED FORWARD IS BECAUSE WE'VE HAD REQUESTS TO DO SOMETHING WITH THE LAND. SO VERY MUCH. IS THERE A PLAN FOR MAYBE AN APPRAISAL OR. NO, WE HAVE APPRAISAL. THERE IS AN APPRAISAL. I'M SORRY, 1.6 MILLION IS WHAT THE APPRAISAL CAME IN AT. BUT BUT AGAIN, YOU KNOW, AND I THINK THAT'S A GOOD APPRAISAL. I MEAN, YOU KNOW, BUT TO TO THE GENERAL PUBLIC OUT THERE, I THINK THE PROPERTY WOULD BE WORTH MORE IF THERE WAS MORE CERTAINTY ON HOW MUCH LAND COULD BE DEVELOPED OUT THERE. IF IF IT'S FULL 26 ACRES, THEN THAT PRICE IS MUCH BIGGER THAN 1.6. WHAT WHAT ARE THE CITY'S OPTIONS? I MEAN, RIGHT HERE, IT JUST SAYS WE HAVE AN OPTION TO EITHER APPROVE THE FOLLOWING ACTION OR TO NOT APPROVE THE REQUEST. IS THERE AN OPTION WHERE THE CITY COULD PURCHASE THE PROPERTY AND PERFORM THE WETLANDS MITIGATION EXCUSE ME, WETLANDS DELINEATION AND POTENTIALLY DO THE MITIGATION IN ORDER TO INCREASE THE VALUE OF THE PROPERTY? WE COULD WE'D HAVE TO COME UP WITH THE MONEY AND THAT MONEY WOULD BE OBVIOUSLY PAID TO THE FAA. OKAY. IT PAYS THE AIRPORT FOR IT. PAY THE AIRPORT. THE AIRPORT. I'M SORRY. PAY THE AIRPORT. OKAY, MIKE, ANY OTHER QUESTIONS? OH, NO, NO. I HAVE MORE QUESTIONS ON THIS. I'M DONE WITH THAT. ALL RIGHT. THANK YOU. THANK YOU, MIKE. AND LET ME ASK YOU A QUESTION ON THIS. I MEAN, SO THIS MONEY GOES TOWARDS THE AIRPORT. DOES THAT MONEY DOES THERE HAVE TO BE A ACTUAL TRANSACTION OF THOSE OF THAT DOLLAR AMOUNT AT THE TIME OF THIS? I MEAN, IS THERE THERE'S NOT A TRANSFER, YOU KNOW, OR SOME LIKE THE AIRPORT COULD PUT IT ON THEIR BOOKS AS A AMOUNT TO BE PAID AT A CERTAIN DATE? I DON'T THINK I UNDERSTAND YOUR QUESTION. THE WAY IT WOULD WORK IS IF WE WERE TO BUY IT OUTRIGHT, THE CITY WOULD HAVE TO LEND THE MONEY TO THE AIRPORT TO BUY IT AT THIS POINT. NO. OR THE CITY COULD OUTRIGHT BUY IT FROM THE AIRPORT. THE CITY WOULD PAY THE AIRPORT THE MONEY FOR THAT. THEN THE CITY WOULD HOLD IT. AND THEN IF YOU SOLD THE PROPERTY, THE MONEY WOULDN'T GO TO THE AIRPORT. THE AIRPORT WOULD GET 1.5 MILLION AND THE BALANCE IN THE CITY HELD IT. THEN THE MONEY WOULD COME BACK TO THE CITY LIKE THE 5.5 ACRES WERE. THERE WOULD BE MAYBE A MORE CREATIVE WAY TO DO THAT. BUT I DON'T I DON'T KNOW HOW WE WE CAN'T GET TOO CREATIVE WITH THE FEDERAL GOVERNMENT, BUT. [00:20:01] WELL, BUT IT'S NOT IT'S NOT GOING TO THE FEDERAL GOVERNMENT. IT'S GOING TO THE AIRPORT, BUT IT GOES THROUGH THE FAA. SO, I MEAN, IF WE WERE TO BUY IT RIGHT NOW, THE MONEY, IF THE CITY WERE TO JUST BUY IT FROM THE FAA, THE THE ONE POINT, WHATEVER IT IS, WOULD GO TO THE AIRPORT. YOU COULDN'T SAY TO BE PAID IN SIX MONTHS. YEAH, RIGHT. YOU CAN'T YOU COULDN'T DO A LOAN TO THE AIRPORT AND THERE WOULD BE A PAYMENT. WELL, WE WOULD NEED THE CITY WOULD BUY IT AT THAT POINT. THE AIRPORT WOULDN'T BUY IT. WHY WOULD THE AIRPORT BUY IT? THEY THEY ALREADY HAVE USE OF IT. YEAH, WE'RE TRYING TO GET RID OF IT. SO THE ISSUE IS, IS, IS THAT THE AIRPORT WOULD THE AIRPORT IS GOING TO GET THE MONEY. SO THE AIRPORT WOULD BE BUYING IT FROM ITSELF AT THAT POINT. RIGHT. BUT BUT THE AIRPORT COULD SAY, OKAY, OKAY, CITY WILL LEND YOU THE MONEY. I MEAN, WE'LL THE AIRPORT WOULD LEND US THE MONEY. THE AIRPORT DOESN'T HAVE IT. YEAH, THEY COULD FINANCE IT FOR THE CITY. WHO COULD FINANCE IT FOR THE CITY? ARE YOU ASKING IF THE AIRPORT COULD TOTE THE NOTE? YEAH, WELL, THE AIRPORT? NO, BECAUSE THE FAA. YOU HAVE TO PAY THE MONEY. THERE'S NO THERE'S NO EASY FINANCE PLAN WITH THE FAA. THE FAA SAYS IF YOU WANT THIS PROPERTY RELEASED, YOU PAY IN FULL FOR THE PROPERTY. BUT THE FAA IS NOT GETTING THE MONEY. DOESN'T MATTER. THEY'RE CONTROLLING THE SALE. WE DON'T WANT TO LOSE IT, THAT'S FOR SURE. YOU'RE CONTROLLING. WE'RE NOT GOING TO YOU'RE NOT GOING TO LOSE IT. YEAH, I THINK THE QUESTION IS, IS IN THE LONGER TERM VIEW AND A LONGER TERM REVENUE POTENTIAL OFF OF THE SALE OF AN IMPROVED PROPERTY OR AT LEAST A PROPERTY THAT HAS WETLANDS DELINEATED ON IT, WHERE THERE IS CERTAINTY TO THE PURCHASER AS TO THE DEVELOPABLE ABILITY FOR THE PROPERTY, IT ALSO COULD DEVALUE IT. YEAH, I COULD. YEAH. YEAH. BUT. BUT YOU'RE NOT GOING TO GET THE MONEY IN YOU EITHER WAY. I MEAN THE SOMEBODY'S NOT GOING TO TAKE THE RISK OF BUYING THE PROPERTY AT SOME HUGE PRICE IF THEY, IF THEY DON'T HAVE CERTAINTY OUT THERE. AND SO YOU COULD, YOU COULD BE LEAVING MONEY ON THE TABLE UP TO A MILLION AND A HALF DOLLARS. AND IF THE CITY IS OKAY WITH JUST LEAVING THE MONEY ON THE TABLE, WHAT'S YOUR OUTCOME HERE? WHAT'S YOUR GOAL? TO GET AS MUCH MONEY FOR THE PROPERTY AS WHAT? WHAT DO YOU THINK IS THE ROUTE TO DO THAT? DOES THE CITY GIVE THE BUYER MORE CERTAINTY ON WHAT THEY ARE PURCHASING? SO YOU'RE SUGGESTING WE NEED TO DO THE DELINEATION BEFORE WE EVEN GO TO DEED RESTRICTIONS AND THAT KIND OF THING? WELL, WE CAN'T DO I MEAN, PART OF THAT. YES, WE WOULD. I WORRY THAT THE APPRAISAL AND EVERYTHING WOULD GO STALE AND WE'D HAVE TO START THIS PROCESS ALL OVER AGAIN. THIS IS ALREADY THE SECOND TIME WE'VE DONE THIS PROCESS. IT TOOK A YEAR. THAT'S WHY I'M ASKING TO GO AHEAD AND GET THE GET THE GET THE PROPERTY TRANSFERRED OVER EITHER INTO THE CITY'S NAME. WELL, THE CITY WOULD HAVE TO COME UP WITH 1,000,006. AND THAT'S WHY I'M ASKING ABOUT CREATIVE FINANCING. AND I HAVEN'T I HAVEN'T HEARD ANYTHING FROM FROM OUR. LET ME ASK OUR LEGAL ON IF THAT WORKS. BUT LET ME ASK ABOUT THE PROCESS AND WHAT WHAT ONE'S DELINEATION IS IT NOT A WETLANDS DELINEATION. OKAY. WELL, LET'S LET'S BACK UP JUST A BIT. IF WE WANT TO PURSUE WITH WITH JOHN IS TALKING ABOUT WHAT'S THE PROCESS THAT THAT COUNCIL WOULD HAVE TO GO THROUGH THAT WOULD HAVE TO COME. WE'D HAVE TO WE'D HAVE TO APPROVE THE PURCHASE OF THE LAND AND WE'D HAVE TO TAKE IT OUT OF OUR RESERVES. IT WOULD TAKE US BELOW 120 DAYS. BUT THAT THAT WOULD HAVE TO BE AN ITEM THAT WOULD COME BACK AS AN ACTION ITEM TO COUNCIL HERE. OKAY. OKAY. THAT'S WHY WE DIDN'T BUY IT THE LAST TIME BECAUSE, YOU KNOW, WE PAID THE OTHER WE PAID A FEW HUNDRED THOUSAND DOLLARS FOR IT. WE HAD THE MONEY FOR IT. IT WORKED OUT. THIS IS IN THE MILLIONS. AND WE JUST I DIDN'T I DON'T THINK IT'S WISE TO TAKE THAT FROM OUR RESERVES AT THIS POINT. BUT IF THAT'S WHAT COUNCIL WANTS TO DO, HAPPY TO DO IT. YOU KNOW, I WOULD SAY THIS, JOHN, AND THE ENTITIES THAT HAVE INFORMALLY CONTACTED ME ABOUT THAT LAND, THESE ARE ENTITIES THAT KNOW ABOUT THAT LAND. THESE ARE NOT ENTITIES. I TALKED TO THEM AS WELL. YEAH. THEY'RE WORRIED ABOUT WHAT THEY'RE GETTING. I MEAN, WELL, THEY KNOW ABOUT IT, BUT THEY HEARD PEOPLE WORRIED ABOUT WHAT THEY'RE GETTING. YEAH, THE ONES I'VE TALKED TO. YOU THINK I'M MAKING THAT UP? NO, I'M JUST SAYING I'VE HAD MULTIPLE CALLS AND NOT ONE HAS SAID. HAS THERE BEEN A WETLANDS DELINEATION? EVERYONE I'VE TALKED TO HAS SAID, OKAY, WELL, LET'S DO THIS. THIS THIS IS SOMETHING THAT COUNCIL WE. RYAN, WHERE DOES THIS THIS NEEDS TO IF WE COME BACK AND WANT TO DO SOMETHING LIKE THAT THAT JOHN'S TALKING ABOUT. IS THAT SOMETHING THAT WE NEED TO DECIDE ON FIRST BEFORE WE MOVE WITH THE RELEASE OF THE PROPERTY? I DON'T BELIEVE SO. I THINK WE NEED TO MOVE FORWARD WITH THE RELEASE REGARDLESS. DON'T WE? MIGHT. RIGHT. THIS IS JUST CORRECT. AGREEING THAT WITH FAA WE'RE GOING TO SELL THE PROPERTY, THAT IT RELEASES THE FAA OBLIGATIONS FROM THE CITY SO WE CAN TURN AROUND AND SELL IT. THERE'S NO TIME LIMIT ON WHEN WE HAVE TO SELL IT. TYPICALLY, I WOULD THINK IN 60 DAYS OR SIX MONTHS OR SO THAT, YOU KNOW, THE ISSUE GO THROUGH THE PROCESS. [00:25:05] THE ISSUE BECOMES THAT YOUR YOUR APPRAISAL BECOMES STALE. YES, I UNDERSTAND. WHAT'S THE TIME AND COST OF DOING A DELINEATION? NO IDEA. I DON'T KNOW. I DON'T KNOW. ON YOUR PROPERTY, YOU MUST HAVE SOME IDEA. OH, IT'S PROBABLY TEN, $15,000, MAYBE 26 ACRES. I MEAN, I'M GUESSING I MEAN, IT SOUNDS LIKE A THE QUESTION WOULD BE TIME WHEN WE'VE HAD THESE DONE IN THE PAST. IT TAKES A LOT OF TIME. OKAY. BUT THE RELEASE DOESN'T GIVE A TIMELINE. SO NO ON THAT. BUT WE MAY HAVE TO HAVE IT REAPPRAISED. WHY WOULD WE WHY WOULD WE NEED IT? LET ME I'M YOU CONFUSED ME A LITTLE BIT. THERE'S NO RELEASE ON THE TIMELINE. THERE'S NO TIME ON THE RELEASE. NO, YOU'RE BASICALLY IT'S AN AGREEMENT WITH THE FAA THAT THEY'RE RELEASING THE PROPERTY AND YOU'RE ACCEPTING THE PROPERTY WITH THE UNDERSTANDING WE'LL GET AT A MINIMUM, 1.6 MILLION. BUT THERE'S NO TIMELINE ON WHEN YOU'RE GOING TO GET THAT 1.6, NOT ON THIS PARTICULAR RELEASE. OH, THEN IT'S NOT EVEN A FACTOR THEN? WELL, FIRST OF ALL, LET'S LET'S CLEAR LET'S BE CLEAR. THE ITEM THAT'S ON THE AGENDA TODAY THAT WE'RE GOING TO VOTE ON, NO MATTER WHICH WAY WE MOVED WITH THIS PROPERTY, WE NEED TO MOVE FORWARD. I UNDERSTAND WHAT YOU'RE SAYING, MIKE, ON THIS PARTICULAR ITEM TODAY. NOW IN THE FUTURE ON THIS, LET'S GET LET'S LET'S JUST WALK IT AROUND REAL QUICKLY. COUNCIL WHAT'S COUNCIL'S THOUGHTS ON WHAT COUNCILMAN LISTOWSKI SAYING HERE? IF WE WHAT WE JUST HEARD IS SAYING THAT WE'RE JUST RELEASING THE PROPERTY, RIGHT? WE COULD STILL DO A DELINEATION BEFORE THE SALE, BUT WITH A DELINEATION I WOULD HAVE IT REAPPRAISED AND THE APPRAISAL TOOK. HOW LONG? WELL, THE PROCESS. BECAUSE YOUR MINIMUM BID WOULD GO UP. WHY WOULD IT GO UP? BECAUSE YOU'RE GOING TO BASE THE APPRAISAL ON THE DELINEATED PROPERTY. PART OF THE PART OF THE APPRAISAL YOU HAVE RIGHT NOW REFLECTS AN ORDER, RIGHT? THE APPRAISAL YOU HAVE NOW REFLECTS AN UNDELINEATED PROPERTY. I UNDERSTAND THAT. YEAH. SO IF WE HAVE IT, IF WE SPEND THE MONEY, WHY WOULD I WHY WOULD I SPEND THE MONEY ON A WETLANDS DELINEATION IF I'M NOT GOING TO HAVE IT REAPPRAISED TO RAISE THE MINIMUM BID, YOU'D HAVE TO HAVE IT REAPPRAISED. YOU'D HAVE TO HAVE IT REAPPRAISED. EXACTLY. SO THAT'S WHAT I'M TELLING YOU. THAT WOULD BE PART OF THE TIMELINE IS WE WOULD HAVE TO HAVE IT REAPPRAISED. THAT'S WHAT I KEEP SAYING. WHY DID IT TAKE A YEAR TO GET IT APPRAISED? DIDN'T TAKE A YEAR TO GET IT APPRAISED. IT TOOK IT A YEAR TO GET THE FAA TO THIS POINT, TO RELEASE IT, TO GET IT. BUT IF WE ACCEPT THE RELEASE AND THEN DECIDE TO DO THE DELINEATION, WE CAN DO THAT. AND WHEN THE DELINEATION IS DONE, HOWEVER LONG THAT TAKES, THEN WE WOULD HAVE IT REAPPRAISED AND HOWEVER LONG THAT TAKES 60 DAYS AND IT'S GOING TO TAKE 60 DAYS TO PUT IT. HOW LONG ARE OUR APPRAISALS RUNNING? MICHELLE THIS IS WHAT I DON'T LIKE. I MEAN, WE GOT THIS STARTED OUT BEING PRESENTED TO US WHERE IT HAD TO HAPPEN AND I'LL VOTE ON THIS. I HAVE NO PROBLEM WITH THIS. RIGHT, RIGHT. BUT IT GOT PRESENTED AS THIS IS GOING TO HAPPEN. YOU KNOW, THERE WAS TALK ABOUT IT. WE COULD LOSE THE PROPERTY, BUT NOW THERE'S NO THERE'S NO TIME. THERE'S NO RUSH ON THIS. THERE'S NO NO, ABSOLUTELY THERE'S NO RUSH. AND, YOU KNOW, IF WE ARE GOING TO I JUST WANT TO GET AS MUCH MONEY FOR THE PROPERTY AS WE WE CAN. THAT'S THE BOTTOM LINE. BY ALL MEANS, LET'S. MAYOR YES. MICHELLE THE REVENUES THAT WE GET FROM THE SALE OF THAT PROPERTY IS GOING TO ALLOW MIKE CHEYENNE TO DO THINGS THAT HE NEEDS TO DO AT THE AIRPORT AS WELL. SO THAT'S WHAT IT SOUNDED LIKE, IS THAT YOU NEED THE MONEY NOW AND THAT YOU WANT TO SELL THE PROPERTY NECESSARILY. I MEAN, MICHELLE, THINGS DONE FIRST? WELL, FIRST OF ALL, FOR THE SAKE OF THE PUBLIC, WOULD YOU IDENTIFY YOURSELF? MICHELLE HEY, ECONOMIC DEVELOPMENT. OKAY. VERY GOOD. HELPING WITH THE SALE THAT I MEAN, THIS AGREEMENT IS JUST BETWEEN YOU ACKNOWLEDGING WITH FAA THAT THEY'RE RELEASING IT, YOU WILL SELL THE PROPERTY. WE'RE ALL HAVE ANY THE MONEY HAS TO GO TO SOME SORT OF REVENUE PRODUCING PROPERTY OR PROJECT SOMETHING THAT WILL GENERATE LONG TERM REVENUE FOR THE AIRPORT. BUT THERE'S NO TIMELINE AND WE DON'T OTHER THAN WE PLAN TO BUILD HANGARS, YOU KNOW, THAT WILL TAKE A WHILE. WE'RE NOT WE DON'T HAVE A PROJECT THAT WE'RE WE'RE HANGING ON TO READY TO GO TO BID ON, YOU KNOW, TO BUILD A HANGAR OR ANYTHING ELSE. NOT YET. BUT THAT'S THE PLAN IS TO PROBABLY BUILD HANGARS AND STUFF LIKE THAT. OKAY, LET'S LET'S GET LET'S GET SOME MORE. THOUGHTS FROM COUNCIL. AND I WOULD I WOULD JUST SAY THAT THIS WILL PROBABLY PUSH THIS INTO EARLY 24 WILL DOING A DELINEATION AND A REAPPRAISAL, JUST JUDGING BY THE TIMES IT'S TAKING US TO GET THESE THINGS RIGHT NOW, THAT THAT HAS VIRTUALLY NOTHING TO DO WITH WHAT WE'RE DOING TODAY. NO, IT DOES NOT. IT DOES NOT. THAT IS CORRECT. TO MOVE FORWARD. I'M HAPPY TO GO ANY DIRECTION AND ACKNOWLEDGE ACKNOWLEDGE THE FAA AS RELEASE THE PROPERTY AND YOU'RE GOING TO COME BACK WITH DEED RESTRICTIONS OR WHATEVER OTHER REQUIREMENTS YOU [00:30:02] THINK YOU THINK APPROPRIATE. AT THAT TIME, COUNCIL CAN DECIDE WHETHER WE WANT TO BUY THE PROPERTY AND DEAL WITH THAT, TRY TO SELL IT AS IS, OR TAKE SOME OTHER STEPS. THAT IS CORRECT. BUT WHETHER WE WANT TO BUY IT OR NOT HAS NO BEARING ON IT. I MEAN, THAT'S WHAT IT WAS BEING PRESENTED AS. BUT THAT REALLY DOESN'T REALLY MATTER BECAUSE THERE'S NO TIMELINE. NONE OF THAT MATTERS ABOUT WHAT WE'RE DOING TODAY. NO, YOU'RE RIGHT. BUT BUT IT DIDN'T HAVE ANYTHING TO DO WITH IT AT THE BEGINNING OF THIS CONVERSATION WHEN IT'S WHEN IT MADE IT SOUND LIKE IT DID. THERE'S NO TIMELINE ON THIS. AGAIN, I'M ALL FOR WHAT WE'RE DOING TODAY, BUT IT WAS PRESENTED TO US LIKE THERE WAS A AT LEAST THE WAY I TOOK IT WAS THERE WAS A BIT OF A RUSH TO GET THIS DONE BECAUSE WE WERE WE WERE PRESSED AGAINST A TIMELINE. THERE'S NO TIMELINE HERE. I DON'T THINK ANYBODY HERE HAS EVER SAID THERE'S A RUSH. BUT WE DID SAY IS THAT IT WILL DELAY THE SALE OF THE PROPERTY. THAT'S ALL RIGHT. LET'S LET'S LET'S WIND UP THE DISCUSSION. I'M GOING TO SAY THIS, THAT FIRST OF ALL, I THINK COUNCIL UNDERSTANDS THAT WHAT'S ON THE AGENDA TODAY IS SOMETHING THAT I FEEL COUNCIL HAS A HAS AN AGREEMENT WITH TO MOVE FORWARD WITH TO RELEASE THIS PROPERTY MOVING FORWARD. JANELLE, LET'S PUT THIS ON AS A WORKSHOP ITEM COMING UP AND WE'LL LOOK WE'LL WORKSHOP THIS MORE THOROUGHLY, GET IT ON THE AGENDA SO WE CAN TALK ABOUT THIS IN MORE DETAIL FASHION. OKAY? ALL RIGHT. VERY GOOD. WE'RE FINE. WE'RE FINE WITH ANY DIRECTION. COUNCIL WANTS TO GO WITH IT UP TO AND INCLUDING BUYING IT OURSELVES, IF THAT'S WHAT YOU WANT TO DO, WE'LL JUST HAVE TO FIGURE OUT WHERE THAT'S GOING TO COME FROM. IT COULD COME FROM IDC, IT COULD COME FROM OTHER PLACES. YOU'D HAVE TO GO THROUGH THE TIME FRAME ON THAT. WHY WOULD WHY WOULD WE EVEN WANT TO DO THAT, THOUGH? THAT'S WHAT I DON'T UNDERSTAND WHY THAT'S EVEN. YOU COULD JUST IT JUST DEPENDS ON WHAT YOU WANT TO DO WITH THE PROPERTY AND HOW MUCH YOU WANT TO. WE'RE GOING TO HAVE THIS ON OUR WORKSHOP COMING UP. WE'LL DISCUSS THIS IN MORE DETAIL AND WE'LL BACK OFF THEN ON DEED RESTRICTIONS AND STUFF FOR THE END OF THE MONTH BECAUSE THERE'S NO SENSE IN DOING ALL THAT. I THINK THAT'S YOU MOVE FORWARD ON ALL THAT. YEAH. YEAH. I THINK I THINK PERSONALLY I WOULD MOVE FORWARD WITH THAT. BRIAN WITH THE DEED RESTRICTION. GET IT DONE. YES, SIR. OKAY. BUT I MEAN THERE ARE JUST TERMS OF SALE, BUT IF WE'RE NOT GOING TO SELL IT RIGHT AWAY, WE'RE NOT WE'RE GOING TO DISCUSS THIS, BRIAN, AT OUR NEXT WORKSHOP AND WE'LL GET THOSE DETAILS FROM YOU AND THEN MAKE OUR DECISION. MIKE, ANYTHING ELSE, SIR? NOT ON THAT. I HAVE ANYTHING ELSE. UM. MICHELLE 8D8D IT'S THE AWARDING OR DISTRIBUTION OF THE 2024 HOTEL OCCUPANCY TAX TO THE ELIGIBLE. THAT'S COMING UP. DISCUSSION ITEM IN THE WORKSHOP. THAT'S ON OUR WORKSHOP, BUT IT'S ALSO AN ACTION ITEM. IT IS. IT IS AS WELL. I CAN EXPLAIN THAT WHEN WE GET TO IT. OKAY. WE HAVE IT AS A SEPARATE ITEM. GOTCHA. ALL RIGHT. WE'LL COME UP TO THAT. OKAY, GOOD ENOUGH. ANYTHING ELSE MIGHT. OH, I JUST WANT TO ASK MARIE. SHE IS NOT HERE. I DIDN'T HAVE ANYTHING. I THINK EVERYBODY'S. EXCUSE ME, 30 MINUTES OFF THE TOP OF THE MEETING RIGHT THERE. SKIP ON DOWN. SO, ANYWAY, YEAH, I SHOULDN'T PICK ON WHEN SHE'S NOT HERE TO DEFEND HERSELF. THERE WE GO. UM, JANELLE, FROM OUR DISCUSSIONS YOU HAVE DOWN FOR A WORKSHOP AT OUR NEXT WORKSHOP, WE'LL DISCUSS THIS ITEM IN MORE DETAIL ABOUT THE SALE OF THIS LAND AND THE DELINEATION AND THINGS LIKE THAT. OKAY, VERY GOOD. THAT'S MOVE. [3.C. Discussion Of The FY 2024 Budget And Capital Improvement Plan (M. Loftin - 30 Min)] WE'RE MOVING NOW TO ITEM THREE C, IF WE COULD PLEASE. THREE C DISCUSSION OF THE FY 2024 BUDGET AND CAPITAL IMPROVEMENT PLAN. WELL, KELLY AND MIKE, COME FORWARD. GLAD TO HAVE YOU AGAIN. THANK YOU. GOOD TO SEE YOU AGAIN. I KNOW, RIGHT? OKAY. LOOK, I THINK I KNOW IT BY HEART. SHEILA, SHEILA, GLAD TO HAVE YOU HERE. ALL RIGHT. THANK YOU. OKAY. HOW IS THIS DIFFERENT FROM THE ONE IN MY LOCKER? THAT'S AWESOME. IT'S NEWER. IT'S THE SAME ONE. IT'S THE SAME ONE WE GOT, I BELIEVE, RIGHT? OH, GOOD. YEAH. IN MY LOCKER. YEAH. WHEN WAS OBSERVING, I SAW ONLY THE MAYOR HAD HIS. AND WHERE. ALL RIGHT, IF WE DIDN'T GET THESE OUT OF THE LOCKER, THEY WOULD. OF STAYED IN THE LODGE. I FOUND IT THIS AFTERNOON. AT SOME POINT I WAS IN THERE. SHEILA, GLAD TO HAVE YOU WITH US. IS SHE GOING TO LEAD THAT OFF, MIKE? SHE IS. LET ME JUST SAY A WORD BEFORE WE START. SHEILA LOUDEN, YOU'VE MET HER IN PREVIOUS MEETINGS AND SHE'S DONE A WONDERFUL JOB COMING IN FRESH MONTH OF MAY, I THINK IS WHEN YOU STARTED AND PICKED UP ON EVERYTHING REALLY FAST. [00:35:03] DOES NOT PRETEND TO KNOW IT ALL, WHICH IS A GOOD SIGN OF SOMEBODY THAT DOES KNOW MORE THAN YOU NEED. SO I'LL TURN IT OVER TO HER AT THIS POINT AND SHE'LL WALK US THROUGH THIS THIS DOCUMENT AND SOME KEY THINGS. OKAY. OKAY. SO YOU HAVE RECEIVED YOUR PROPOSED FY 2024 BUDGET. IT IS IN FRONT OF YOU. AND I'M GOING TO WE'RE GOING TO WALK THROUGH IT SO THAT YOU HAVE SOME IDEA OF WHAT YOU'LL BE LOOKING AT AT HOME BEFORE YOU GO TO SLEEP AT NIGHT. AS WE'RE HEADING INTO THE APPROVAL IN SEPTEMBER. JUST TO REVIEW THE CALENDAR, FIRST, WE'VE COMPLETED THE JUNE AND JULY WORKSHOPS. WE SUBMITTED THE BUDGET TO THE CITY SECRETARY'S OFFICE YESTERDAY. IT WAS STAMPED. IT WAS AN EXCITING MOMENT FOR US. THE HEAVY LIFT WAS DONE, HOPEFULLY, AND THEN THE 24TH, IF THERE THE NEED ARISES, WE COULD POTENTIALLY CONTINUE DISCUSSING THIS. BUT RIGHT NOW, THE ACTION YOU WILL BE TAKING AFTER AT THE ACTION PART OF THIS MEETING WILL BE TO SET THE PUBLIC HEARINGS AND THE ADOPTION FOR SEPTEMBER 14TH IF SOMETHING WERE TO GO AWRY, WHICH I SERIOUSLY HOPE DOES NOT HAPPEN, OUR LAST REAL DAY TO DO ANYTHING WOULD BE THE 21ST. SO IT'S IMPORTANT TO KEEP ALL THAT IN MIND. LET'S START WITH THE VERY FIRST PAGE. WHEN YOU OPEN YOUR BINDER AND THIS IS THE LEGALLY REQUIRED BUDGET COVER THAT WAS ESTABLISHED IN THE LOCAL GOVERNMENT CODE FOR THE BUDGET AS WELL AS COMBINED WITH SB TWO, YOU WILL NOTE THAT THE PROPERTY TAX INFORMATION ON THIS PAGE SHOWS YOU WHAT OCCURRED LAST YEAR AND THEN ALL THE CALCULATED RATES FOR THIS YEAR AND THAT TOP RATE PROPERTY TAX RATE, THAT 0.408850 IS THE PROPERTY TAX RATE WE HAVE USED AS WE DEVELOPED THIS BUDGET. OKAY. AND THIS IS THE ONE THAT WAS DISCUSSED AT OUR JULY 27TH COUNCIL MEETING. SO IF YOU TURN TO PAGE, THE PAGE IS ONE YOU'LL NOTICE IT'S THE PAGES ARE NUMBERED BASED ON THE CATEGORY OF THE BUDGET. THIS IS AFTER YOUR INTRODUCTORY TAB. SO INTRODUCTORY SECTION, PAGE ONE. THIS IS THE FIRST PAGE OF THE TRANSMITTAL LETTER AND THIS HAS YOUR WHOLE BUDGET. SO THIS IS BASICALLY THE SUMMARY OF THE ENTIRE BUDGET. YOU'LL SEE THE ALL OF THE COMBINED TOTAL OF THE MAINTENANCE AND OPERATIONS FUNDS IS $238 MILLION THIS YEAR. THAT'S ABOUT A 12% INCREASE. THERE ARE ONE TIME APPROPRIATIONS BRINGING THE TOTAL OPERATING BUDGET TO 241 MILLION. AND THEN WITH THE CAPITAL BUDGET, WHICH IS PROGRAMED TO BE 185 MILLION, THE TOTAL WALK OUT BUDGET THAT YOU HAVE IN YOUR HANDS TODAY IS 427.56 MILLION. OKAY. IF YOU MOVE ON TO PAGE AFTER THE BUDGET SUMMARY TAB, SO YOU HAVE THIS LOVELY TAB BUDGET SUMMARY. AFTER THAT, THE PAGE NUMBERS START WITH C, W AND I WANT TO DIRECT YOUR ATTENTION TO PAGE CW THREE. THIS IS YOUR CITYWIDE SUMMARY. THIS INCLUDES YOUR BEGINNING FUND BALANCES STARTING OCTOBER 1ST, 2023 AND OR OUR PROJECTIONS FOR THAT. IT SHOWS YOUR REVENUE. THIS IS ON THE FAR RIGHT COLUMN. IT SHOWS YOUR REVENUE, YOUR EXPENDITURES, WHICH AGAIN 238.5 MILLION IS THE OPERATING BUDGET TOTAL. YOU HAVE GOT YOUR ONE TIME APPROPRIATIONS AND THEN YOUR ENDING FUND BALANCES AS THEY ARE PROJECTED FOR SEPTEMBER 30TH, 2024. SO IT'S KIND OF AN IMPORTANT SUMMARY PAGE AND YOU CAN COMPARE ALONG HOW THAT PERFORMANCE ACCORDING TO PREVIOUS YEARS, IF YOU TURN JUST THE PAGE TO THE FOLLOWING PAGE, CW FOUR CONTAINS THE CALCULATION FOR THE CHARTER REQUIREMENTS ON THE GROWTH LIMIT. YOU'LL SEE THAT THAT WE ARE VIA THIS CALCULATION, WHICH IS A MODIFIED ACCRUAL CALCULATION, AND IT REMOVES THE CAPITAL ITEMS. THE CAP OF 7% IS WE'RE WAY UNDER THAT AT A -3.99%. AND SO YOU SEE AT THE BOTTOM OF THE PAGE THE ITEMS THAT ARE NOT SUBJECT TO THE 7% CAP, WHICH WOULD BE ITEMS THAT ARE IN YOUR SPECIAL REVENUE FUND OR CAPITAL ITEMS. BUT WE ARE WELL BELOW THAT CHARTER. REQUIREMENT OF CAPPING THE GROWTH AT 7%. IF YOU TURN A COUPLE OF PAGES OVER TO CW SIX. THIS IS OUR ECONOMIC OUTLOOK SECTION AND MIKE PUT A LOT OF WORK INTO THIS, AND THIS IS HIS AREA OF EXPERTISE. SO I DIDN'T WANT TO SKIP OUT ON THIS. BUT AT THE VERY FIRST PARAGRAPH AT THE TOP, YOU'LL NOTICE A STATEMENT THAT SAYS SALES TAX BEGAN A REMARKABLE GROWTH TREND THAT IS JUST NOW [00:40:02] MODERATING. AND WE WANTED TO MAKE COUNCIL AWARE THAT AS WE PROJECTED, WE ARE HAVING A PLATEAU EFFECT RIGHT NOW IN SALES TAX. AND FOR THE SALES TAX WE RECEIVED IN AUGUST, WHICH IS SALES THAT OCCURRED IN JUNE, WE SAW A DECREASE YEAR OVER YEAR BY ABOUT 2.7% OR $88,000. AND SO WE ARE WATCHING SALES TAX VERY CLOSELY. BUT AT THIS MOMENT, WE DEFINITELY FEEL THAT THIS FOUR MONTH TREND IS A SLOWING TREND AND WE DON'T EXPECT IT TO DECREASE GREATLY. BUT WE ALSO AREN'T EXPECTING THE SAME REVENUE GROWTH THAT WE'VE HAD OVER THE LAST 2 TO 3 YEARS. SHEILA, QUESTION ON THAT. I TAKE IT IN YOUR PREDICTIONS FOR THE SALES TAX TOOK INTO CONSIDERATION THE SALES TAX COMING FROM THE PORT AND THE PARKING WILL BE GOING UP QUITE A BIT COMING UP HERE VERY SHORTLY. SO THAT'S ALREADY IN YOUR CALCULATIONS? YEAH. SO SALES TAX AS IT RELATES TO PARKING SPOTS IS ALREADY KIND OF BAKED INTO THE TOTAL SALES TAX THAT WE RECEIVE WHEN WE RECEIVE OUR SALES TAX SALES TAX PAYMENTS. UNLESS WE'RE LOOKING AT THE CONFIDENTIAL SALES TAX REPORT, IT'S HARD TO PARSE OUT HOW MUCH COMES FROM EVERYTHING. BUT I WOULD SAY THAT THE LAST TWO YEARS TRENDS AS WE'VE RAMPED BACK UP ON CRUISE PARKING, THAT'S TAKEN INTO CONSIDERATION. AND THIS WON'T BE A TREND, THOUGH. THIS IS SOMETHING THAT'S REALLY GOING TO PICK UP BECAUSE OF THESE NEW SHIPS COMING IN AND SO FORTH. OKAY. WE ONLY GET WE DON'T GET ALL 8.25%. WE GET 2.25%. SO WE'RE GETTING 2.25% OF THOSE REPORTED SALES TAX. IT'S IT'S NOT INSIGNIFICANT, BUT IT'S IN THE HUNDREDS OF THOUSANDS OF DOLLARS, NOT IN THE MILLIONS OF DOLLARS. SO IF YOU TURN THE PAGE TO SEE W EIGHT AND NINE, THIS IS YOUR ECONOMIC METRICS RELATED SPECIFICALLY TO THE ITEMS YOU'RE TALKING ABOUT, MAYOR, THAT WE'VE BEEN LOOKING AT CLOSELY OVER THE LAST YEAR AND WILL CONTINUE TO LOOK AT IN THE COMING YEAR, WHICH IS ALL THE ACTIVITY SURROUNDING THE PORT AS WELL AS THE INCREASED COLLECTIONS AND HOTEL OCCUPANCY TAX. AND SO BOTH OF THESE GRAPHS ARE SIGNIFICANT AND I JUST WANT TO TOUCH ON THEM FOR A MOMENT. ON CW EIGHT, YOU'LL SEE THE PASSENGER COUNT FOR THE PORT OVER THE LAST 20 YEARS, BASICALLY. AND YOU'LL SEE THAT OBVIOUSLY THERE WAS A DIP WITH THE PANDEMIC, BUT WE'RE BASICALLY ALMOST BACK TO PRE-PANDEMIC LEVEL LEVELS. AND AS THE MAYOR INDICATED, WE EXPECT THAT TO BE GROWING IN THE NEXT YEAR OR TWO. AND SO IT'S IMPORTANT TO GRASP THAT THAT IS GOING TO BE A SIGNIFICANT ECONOMIC FACTOR FOR COMING YEARS. ON THE FOLLOWING PAGE ON CW NINE, YOU'LL SEE THE HOTEL OCCUPANCY TAX COLLECTIONS. AND ONE OF THE INTERESTING PARTS OF THIS GRAPH WHEN YOU KIND OF FOCUS IN ON A MOMENT IS YOU'LL SEE IN 2019 THAT BLUE BAR, IT WAS AT ABOUT 12.8 MILLION AND IT'S BEEN RELATIVELY STEADY. IT'S DECLINED A LITTLE IN THIS LAST YEAR, BUT WE DON'T HAVE A FULL YEAR YET. SO YOU'LL NOTICE THE STRS, HOWEVER, YOU'VE GONE FROM THAT 5.4 MILLION AND LAST YEAR WAS 15.7 MILLION. SO YOU CAN SEE HOW LARGE OF A ROLE THE STRS HAVE PLAYED IN THE TOTAL GROWTH IN HOTEL OCCUPANCY TAX. AND ONCE AGAIN, THIS IS JUST AN ECONOMIC INDICATOR TO KEEP OUR EYES ON AS WE'RE LOOKING AT NON PROPERTY TAX REVENUE OPTIONS AND WHAT KINDS OF ACTIVITIES IMPACTING THE CITY AS A WHOLE. QUICK QUESTION. DO YOU DO YOU SEE HOTEL TAX COLLECTIONS TRACKING WITH SALES TAX? I MEAN, BECAUSE WE DON'T SEE TO MY EYE, I DON'T SEE A MODERATION IN THE GROWTH OF HOTEL TAX. NOW, SOME OF THAT MAY BE COLLECTIONS, REGISTRATION, THAT KIND OF THING. SO THAT THAT MUDDIES THE IT DOES MUDDY THE WATER A LITTLE BIT. I THINK ONE OF THE THINGS THAT YOU HAVE THAT'S A LITTLE DIFFERENT IS WITH SALES TAX, YOU'RE ALSO SEEING YOUR RESIDENTS PORTION OF THE SPENDING INVOLVED IN THAT. AND FOR WHAT ALL WE KNOW, THAT MAY BE THE PORTION THAT'S MODERATING A LITTLE AND THE TOURISTS WHO ARE PAYING TO BE HERE AREN'T REALLY DIALING BACK ON THEIR SPENDING. AND SO THAT COULD BE PART OF WHERE WE'RE SEEING A LITTLE BIT OF A SLOWING DOWN ON THE SALES TAX SIDE. I WILL TELL YOU THAT I READ AN ARTICLE, INTERESTING ARTICLE. I REMEMBER WHERE I READ IT. IT WAS IN THE WALL STREET JOURNAL WITH THE OTHERS THE OTHER DAY THAT ONE OF THE THINGS THAT YOU'RE SEEING IN CITIES WITH HIGH LEVELS. ALSO, SHORT TERM RENTALS ARE GROWING LEVELS OF SHORT TERM RENTALS IS THAT YOU'RE SEEING YOU KNOW, IT USED TO BE IF HOTELS WERE GOING UP, SALES TAX WAS GOING UP BECAUSE PEOPLE THAT WERE STAYING IN HOTELS WERE EATING OUT MORE AND DOING THINGS. PEOPLE THAT ARE STAYING IN SHORT TERM RENTALS, THEY BUY GROCERIES, THEY COOK MORE, THEY DO MORE THINGS LIKE THAT. SO YOU DON'T SEE THE THE THE LINEAR GROWTH OF SALES TAX WITH SHORT TERM RENTAL GROWTH. SO AS YOU'RE SEEING MORE SHORT TERM RENTAL GROWTH HERE, YOU DON'T NECESSARILY GET THE 1 TO 1 BUMP IN YOUR SALES TAX. ALSO FURTHER DISGUISED BECAUSE WHEN YOU SEE RESTAURANT AND ENTERTAINMENT GROWTH, YOU KNOW WHERE THAT'S COMING FROM. [00:45:07] YOU KNOW, YOU KNOW WHERE THE BUMP IS COMING FROM. YOU SEE INCREASED SALES TAX FROM KROGER AND WALMART. YOU DON'T KNOW WHERE THAT'S COMING FROM. YOU DON'T GET AND REMEMBER, A LOT OF WHAT YOU BUY AT KROGER AND WALMART IS NOT TAXABLE. THAT'S A VERY GOOD POINT THAT OH, I THOUGHT ABOUT IT THAT WAY ON TAX. YEAH. SO. SO THAT. OKAY. GOT IT. THE DO WE HAVE ANY REASONABLE NUMBERS TO TELL US WHAT PERCENTAGE OF OUR SALES TAX COMES FROM OFF ISLAND? WHAT VISITORS FROM ALL VISITORS. VISITORS PROVIDE? WHAT PERCENTAGE OF OUR OF OUR SALES TAX. DON'T DON'T. NO WAY TO KNOW THAT WHAT WHAT WE WERE ABLE TO GET FROM THE STATE AND SHARE FOR AUDITING PURPOSES WITH THE CITY AUDITOR IS TOTAL TAX PAID BY BUSINESS OWNER. YEAH THAT'S NOT GOING TO TELL YOU THAT. SO YOU CAN DO SOME. I'VE LOOKED AT THIS ACTUALLY, AND I HAD THEM GIVE ME SOME INFORMATION AND IF YOU LOOK AT IT, IT'S CLOSER TO 5050 THAN YOU WOULD THINK IT IS. BUT IT IS REALLY HARD TO DECIPHER IT WITH THE INFORMATION THAT WE'RE GIVEN. BUT WE'LL TELL YOU YOUR BIGGEST BENEFICIARY OF DAY TRIPPERS IS BUGGIES. YEAH. WHICH IS NOT OURS IN GALVESTON. SO IF YOU TURN TO PAGE CW 12, THAT IS THE BEGINNING OF YOUR PROPERTY TAX SECTION. AND ON CW 12 SPECIFICALLY, I WANT TO BRING YOUR ATTENTION TO THE VALUE AS APPROVED BY THE GALVESTON COUNTY APPRAISAL DISTRICT. THE INITIAL VALUE FOR 2024 WAS THAT $13.2 BILLION AND THE LOSSES AS OF THE CERTIFICATION WERE AT ABOUT $1.2 BILLION. SO RIGHT NOW, OUR NET TAXABLE VALUE IS AT 11.9 OR $12 BILLION, AND YOU'LL SEE HOW THAT COMPARES TO PREVIOUS YEARS. OUR PERCENT LOSSES AT ABOUT 9.1%. AND YOU CAN SEE THE 19.3% IS THE NET INCREASE YEAR OVER YEAR. THE 31.2% IS THE OVERALL INCREASE OR THE OVERALL INCREASE SINCE THE INITIAL POINT. ALL RIGHT. I WANT TO MAKE A COMMENT HERE. I THINK WE REALLY NEED TO LOOK AT AND PUT THOUGHT THOUGHTFUL EFFORT, NOT THAT WE DON'T INTO WHO WE'RE POINTING TO THE APPRAISAL BOARD BECAUSE I KNOW THE CITY GETS TO BECAUSE IT'S VERY INTERESTING WHAT'S HAPPENING THIS YEAR. WELL, THEY'VE ALREADY BEEN THEY'RE ALREADY IN A NUMBER OF LAWSUITS. AND I'M JUST GOING TO SHARE MY PERSONAL EXAMPLE. I HAD AN AARP MEETING THAT WAS SUPPOSED TO BE THIS PAST TUESDAY, THE APPRAISAL REVIEW BOARD REVIEW BOARD APPRAISAL REVIEW BOARD, BECAUSE I LET MY HUSBAND SUBMIT THE INFORMATION FOR OUR PROTEST AND WE GOT BASICALLY NOTHING OFF AND THEY HAD DOUBLED THE VALUE OF OUR PROPERTY. SO LAST THURSDAY, I GET A PHONE CALL FROM THE PERSON WHO HAD DONE OUR INITIAL APPRAISAL AND SHE SAID, I KNOW YOU'VE REJECTED OUR FIRST OFFER. WOULD YOU BE OPEN TO A SECOND? AND THEY KNOCKED IT DOWN 70%. I'M LIKE, OH YEAH, I'LL TAKE THAT. SO THEY'RE BEING SUED BY SO MANY PEOPLE. THEY'RE JUST NOW GIVING IT AWAY. SO THERE'S SOMETHING WRONG WITH THE APPRAISAL BOARD THAT THEY WOULD BE IN THIS SITUATION, WHICH BASICALLY HURTS US FOR BACKGROUND. WE DON'T THE CITY DOESN'T GET AN APPOINTMENT, BUT WE GET A CERTAIN NUMBER OF VOTES THAT WE TYPICALLY THROW IN WITH THE OTHER. SO WE MAKE SURE GALVESTON GETS REPRESENTATION. WE TYPICALLY THROW IN WITH THE SCHOOL DISTRICT OR SOMEBODY LIKE. AND THAT IS HAPPENING. I TALKED TO JANELLE YESTERDAY ON THAT. THAT WILL BE ON OUR SEPTEMBER AGENDA, IS THAT RIGHT? CORRECT. IT'D BE ON OUR SEPTEMBER AGENDA FOR OUR INPUT ON THAT PARTICULAR POSITION. RIGHT. WE GET A NOMINATION FOR THAT DISTRICT IN WITH THE SCHOOL DISTRICT. YEAH. BECAUSE THEY ARE DOING A CRAPPY JOB. THAT'S ALL I'M GOING TO SAY. DOES MAKE YOU WONDER WHERE THEY GET THAT. BUT IT DIDN'T MAKE ME HAPPY BECAUSE I HATE GOING TO AIRBASE. SO ON CW 30. 13. YOU SEE THE DETAIL ASSOCIATED WITH THE PROPERTY TAX CALCULATION. SHOULD ANYONE HAVE ANY QUESTIONS? I'M HAPPY TO ANSWER THOSE, BUT I WOULD RECOMMEND YOU CALL US SEPARATELY BECAUSE THE DETAIL IS A LITTLE DRY, I THINK, FOR A MEETING LIKE THIS. SO I WON'T GET DOWN IN THE WEEDS ON THAT. IF YOU MOVE ON TO PAGE C W 27 AND BY THE WAY, ALL OF THIS IS IMPORTANT, SO I ENCOURAGE YOU TO READ [00:50:01] ALL OF IT. BUT I'M HITTING THE HIGH POINTS SO THAT YOU KNOW WHERE THEY'RE AT. SO ON PAGE CW 27, YOU'LL SEE THE BUDGETED POSITIONS FOR THE FISCAL YEAR 2024 BUDGET. YOU'LL SEE THAT THERE IS A GAIN OF FIVE POSITIONS AND ALL OF THOSE ARE IN OUR ENTERPRISE FUNDS. SO WATERWORKS, SANITARY SEWER ARE THE BIGGEST RECIPIENTS OF THOSE EMPLOYEES. ALSO ONE IN DRAINAGE. BUT SO THAT IS WHERE OUR EMPLOYEE COUNT IS AS OF THIS BUDGET. IF YOU MOVE ON TO THE GENERAL FUND, THE NEXT TAB, THEN YOU'LL SEE OUR REVENUE DEPICTED IN THE GRAPH ON GF1. YOU'LL SEE PROPERTY TAXES MAKE UP ABOUT 46% OF THE TOTAL REVENUE BENEFITING THE GENERAL FUND. NEXT IS SALES TAX. AND WE'VE DISCUSSED THIS AND THIS SHOULDN'T COME AS A SURPRISE. IF YOU TURN TO PAGE TWO, YOU'LL SEE THE EXPENDITURES ALSO REPRESENTED IN A GRAPHICAL FORMAT WHERE IT'S A LITTLE EASIER TO SEE THAT PUBLIC SAFETY PIECE COMING IN AT 61% OF OUR TOTAL SPENDING IN THE GENERAL FUND. AND THEN THE OTHER SMALLER DEPARTMENTS. KEEP IN MIND THAT 61% OF YOUR TOTAL FUNDING BUDGET, IT IS IF YOU TOOK IT AS WHAT YOU'RE LOOKING AT, $58 MILLION IN TOTAL TAX REVENUE AND YOU'RE AT 47 MILLION IN TOTAL PUBLIC SAFETY COSTS. SO OF YOUR MOST STABLE REVENUE, IT IS YOU'VE GONE OVER 70%. CAN I CAN I POINT SOMETHING OUT HERE TO GO BACK TO A PREVIOUS STATEMENT THAT WAS MADE BY A PREVIOUS BOARD MEMBER OF THE PARK BOARD WHO STATED THAT TOURISM IS 100% OF WHAT SUPPORTS THE CITY. YOU CAN LOOK AT THIS CHART AND SEE THAT THAT ISN'T TRUE, IS ALL I'M SAYING. SO IF YOU MOVE ON TO PAGE 8GF8, YOU WILL SEE THE GENERAL FUND SUMMARY. IT'S COVERS THESE TWO PAGES. THIS IS THE FORMAT YOU RECEIVE YOUR QUARTERLY REPORTS AND AS WELL. SO YOU'LL SEE THE REVENUE THERE AT THE TOP ON THE LEFT AND THEN YOU'LL SEE THE VARIOUS DEPARTMENTS AND THEIR TOTAL BUDGETS MOVING THROUGH ON TO GF9. YOU'LL SEE THE BOTTOM RIGHT CORNER OF GF9, YOUR GENERAL FUND APPROPRIATION AT $77.8 MILLION OF THAT. IF YOU GO BACK TO THE LEFT HAND PAGE, THE GF8, YOU'LL SEE PUBLIC SAFETY IS THE FIRST ORG THAT'S REPRESENTED UNDER YOUR REVENUE THERE AND THAT'S AT 45.7 MILLION. AND SHEILA, AM I CORRECT IN TELLING ON THIS EXPENDITURES FOR FIRE, POLICE AND FIRE THAT DOES NOT INCLUDE THEIR NEW SALARY NUMBERS? CORRECT. THE NEW SALARY NUMBERS ARE CAPTURED ON GF9. RIGHT. WE'RE HOLDING THAT MONEY SEPARATE. WE DON'T PUT IT IN THERE UNTIL WE HAVE SIGNED CONTRACTS. WE STILL ARE OPEN ON FIRE. YEAH, OPEN ON FIRE. POLICE. YOU'LL BE SHOULD BE SHOULD BE GETTING IT NEXT MEETING. SO FROM 23 TO 24, TOTAL INCREASE IN THE BUDGET IS ABOUT 7%. 4 MILLION BUCKS, 11%. IS THAT. YES. AND THERE IS. HOLD ON. THERE SHOULD BE. ON PAGE THREE, YOU'LL ON THAT GRAPH, YOU SEE THE ITEMIZED INCREASES THAT LEAD TO MOST OF YOUR INCREASE. AND THEN THERE'S SO YOU'LL SEE, FOR EXAMPLE, POLICE, FIRE, CIVILIAN POTENTIAL INCREASES, THE ESTIMATES RELATED TO THAT, AS WELL AS TECHNOLOGY, HEALTH INSURANCE, ALL THE ITEMS, THE INCREASE TO THE INFRASTRUCTURE AND DEBT SERVICE FUND. SO ALL OF THOSE ITEMS BUILDING UP TO THAT CHANGE IN 5.8 MILLION. THAT'S THE DIFFERENCE IN THE 23 AND 24. IT'S NOT THE EXACT DIFFERENCE BECAUSE THERE'S ALSO DECREASES, RIGHT? AND SO THEY'RE NETTING, BUT THESE ARE THE BIG INCREASES THAT IMPACT THIS BUDGET. THAT'S WHY. SO THAT'S 5.8. BUT IT'S ACTUALLY IT'S LESS THAN THAT. YES. WE TRY TO GIVE YOU A SNAPSHOT. THESE ARE THESE ARE YOUR BIG ITEMS. THESE ARE THE ONES THAT HIT US THIS YEAR. OKAY. CAN I ASK ONE MORE QUESTION? YES, MA'AM. SO WASN'T IT WASN'T LAST YEAR, PUBLIC SAFETY WAS 67% OF OUR BUDGET. YEAH, BUT REMEMBER LAST YEAR YOU HAD TOTAL NUMBERS IN THERE. YOU DON'T HAVE TOTAL NUMBERS IN THERE YET BECAUSE WE HAVEN'T FINISHED THE INVESTIGATIONS. YEAH. AND ALSO REMEMBER TO OF TOTAL BUDGET, YOU'RE RIGHT BECAUSE WE'VE ALSO ADDED ALL THESE OTHER NEW REVENUES. REMEMBER, YOU GUYS ASKED US TO GO OUT AND SEEK NEW REVENUES. WE TRY TO ALIGN OUR MOST STABLE SERVICES WITH OUR MOST STABLE REVENUE AND THAT'S PROPERTY AND SALE. PROPERTY IS THE MOST STABLE, FOLLOWED SOMEWHAT BY SALES TAX AND THAT'S WHY WE USE THAT COMPARATIVE. [00:55:02] SO YOU SAID WE DON'T HAVE TOTAL NUMBERS IN HERE YET. THEY'RE IN HERE. I JUST DON'T DISPOSE THEM IN EACH ONE BECAUSE WE HAVEN'T SIGNED THE CONTRACTS YET. SO THEY'RE INCLUDED. THAT'S 77 MILLION, INCLUDES ALL THE ESTIMATES FOR THE CBA, BOTH FIRE AND POLICE. HOWEVER, IT'S NOT ITEMIZED AND IT'S NOT SPLIT OUT TO THE DEPARTMENT SINCE THE AGREEMENTS ARE SIGNED. BUT WHAT MARIA HAS WAS THE 67% OVER LAST YEAR AT 61% THIS YEAR, WELL, THAT NUMBER IS NOT GOING TO CHANGE. WELL, BUT IT DOESN'T SHOW UP IN THE PUBLIC SAFETY NUMBER HERE YET. YEAH, BECAUSE IT'S NOT SPLIT OUT TO PUBLIC SAFETY YET. IT WOULD BE LESS THAN 67. IT'S GOING TO BE LESS BECAUSE WE HAVE ALL THE NEW REVENUE AND THE NEW REVENUES. IT'S MAINLY MOSTLY DUE TO THE NEW REVENUE THAT WE'VE ADDED. OKAY. SHEILA, THE THAT INCLUDES THE CBA THAT YOU MENTIONED ALSO INCLUDES ACROSS THE BOARD COLA, WHAT, 4%? YEAH, THERE'S THERE'S, THERE'S ROUGHLY THAT MUCH IN THERE. WE HAVEN'T SPLIT THAT OUT YET BECAUSE WE'RE GOING TO HAVE SOME PENSION ADJUSTMENTS TOO. OKAY. BUT IT'S A 4% COLA BASICALLY FOR THE WELL, IT'S 4% IN THERE FOR COMPENSATION FOR CIVILIANS. WHETHER THAT'S HOW WE BREAK THAT UP WITH PENSION AND STUFF. WE'RE WORKING WITH THE ACTUARY ON THAT NOW. OKAY. OKAY. SO JUST TO GIVE YOU A TASTE OF HOW THE BUDGET IS STRUCTURED, IF YOU TURN THE PAGE TO PAGE TEN, YOU WILL SEE WHAT IT LOOKS LIKE TO HAVE A DEPARTMENT SUMMARY. AND THIS IS PUBLIC SAFETY OR THIS IS ALL OF THE DEPARTMENTS. I'M SORRY, THIS IS THE EXPENDITURE SUMMARIES BY DEPARTMENT AND BY CATEGORY ON PAGE TEN. MOVING ON TO F 11, YOU WILL SEE THE SPLIT OUT TO PUBLIC SAFETY SPECIFICALLY. AND IN EACH OF THE AREAS YOU'RE GOING TO SEE THE DEPARTMENTS INCLUDED AND THEN THE CATEGORIES OF SPEND. SO PERSONNEL, MATERIALS, THAT SORT OF THING. YOU WILL HAVE A HIGHLIGHT SECTION LIKE YOU SEE HERE ON F 11 THAT EXPLAINS WHAT'S GONE UP, WHAT'S GONE DOWN, WHAT THE IMPORTANT ITEMS ARE. WHY IS EMERGENCY MANAGEMENT, WHY HAS THAT GONE DOWN IN 23 AND UP SIGNIFICANTLY IN 24? IF WE SOME YEARS WE'VE HAD AS MANY AS THREE PEOPLE BUDGETED AND WE HAD VACANCY IN 23 ESTIMATED BECAUSE WE LOST EMERGENCY MANAGER, WE WENT SEVERAL MONTHS WITHOUT AN EMERGENCY MANAGER DURING THE OFF SEASON. BUT WE HIRED BUT WE'RE PRETTY CLOSE TO LEVEL FROM BUDGET TO BUDGET. AND SO HERE ON POLICE, IT'S ONLY A COUPLE HUNDRED THOUSAND DOLLARS DIFFERENCE DOES NOT INCLUDE THEIR NEW PACKET. THIS THESE THESE NUMBERS AREN'T CORRECT. THOSE NUMBERS ARE NOT BAKED INTO THE PUBLIC. WHY WOULDN'T YOU HAVE THE NUMBERS? BECAUSE WE HAVEN'T FINALIZED IT. WE DON'T FINALIZE IT UNTIL WE SIGN IT. HAVE AN AGREEMENT. DON'T HAVE A CONTRACT. THAT'S RIGHT. YOU THINK THIS IS PROBABLY 2 MILLION LOW? WE'LL SEE. OKAY. SO IF YOU TURN TO PAGE 12, YOU'LL SEE IN THIS CASE, THE POLICE DEPARTMENT HAS DELINEATED THEIR MISSION STATEMENT, THEIR ACCOMPLISHMENTS AND GOALS. AND THEN IF YOU MOVE ON TO F 13, YOU'LL SEE THEIR SPECIFIC EXPENDITURE SUMMARY AS WELL AS THE HIGHLIGHTS SPECIFICALLY FOR THE POLICE DEPARTMENT. IF YOU TURN THE PAGE TO G F 14, YOU'LL SEE THIS IS WHERE THEIR POSITION SUMMARY OCCURS UNDER THEIR PERSONNEL AND THEN IT BEGINS THEIR LINE ITEM DETAIL. EVERY SINGLE DEPARTMENT IS SET UP IN THIS FORMAT SO YOU CAN CONSISTENTLY READ THROUGH, UNDERSTAND WHAT'S CHANGED IN THE BUDGET, WHAT THE HIGHLIGHTS ARE, WHAT PERSONNEL IS BEING FUNDED IN THE DEPARTMENT, AND THEN REVIEW THE LINE ITEMS IF YOU CHOOSE TO. WE'RE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. I'M NOT GOING TO GO OVER ANY MORE OF THIS BECAUSE IT'S THE SAME STRUCTURE THROUGHOUT, BUT BASED ON THE TABLE OF CONTENTS AT THE BEGINNING, YOU CAN FIND ALL THE DEPARTMENTS OR JUST FLIP THROUGH AS YOU'RE GETTING READY FOR BED EACH NIGHT AND, YOU KNOW, GET YOUR PRIMER ON EVERYTHING IN THE BUDGET. SO EXCUSE ME, LET ME THE THE TWO 11.5 THAT'S FTE ASSOCIATED WITH THAT. AGAIN, DAVID THE THAT INCLUDES CIVILIAN EMPLOYEES TO THE G F 14, THE F 14 TOTAL FTE. YES. EPD IS TO 11.5. THAT'S WHAT THAT IS. THAT'S THAT'S CIVILIAN INCLUDED ADMINISTRATIVE ASSISTANCE, EVERYTHING AND OUR OUR ALLOCATED 769 OFFICER LICENSE. OKAY. THANK YOU. AND ALSO I WANT TO POINT SOMETHING OUT TO YOU. YOU'RE GETTING PRETTY CLOSE HERE, BUT WE WE HAD A LOT OF LOADED CAPITAL IN 23 BECAUSE OF THE WAY THE CARS. CAME IN AT 23 ARE GETTING THREE YEARS WITH CARS AT ONE TIME THAT WOULD END UP PUSHING. WHAT ARE YOU WHAT ARE YOU POINTING AT? IF YOU LOOK AT CAPITAL OUTLAY GF 13, GF 13 AT THE TOP, YOU'LL NOTICE THAT DON'T THINK THAT 24 OH MY GOD, WE WILL PROBABLY AND THAT WILL ADJUST BECAUSE WHAT WE DO IS WE PUT A LUMP SUM IN FOR VEHICLE MAINTENANCE. DAVID WILL RUN THOSE REPORTS, BUT FOR INSTANCE, LAST NIGHT WE WRECKED A POLICE CAR. [01:00:01] I DON'T KNOW HOW BAD IT IS THAT COULD PRECIPITATE A REPLACEMENT THAT BUMPED SOMETHING ELSE. SO THERE WILL BE CAPITAL OUTLAY SPENT ON POLICE THIS YEAR, PRIMARILY VEHICLES. RIGHT. REJECTING IT BECAUSE THEIR ENTIRE PATROL FLEET AND MOST OF THEIR CID FLEET IS BRAND NEW, EVEN THOUGH THEY HAVEN'T RECEIVED THEM YET. THEY'RE ALL SITTING UP THERE WAITING FOR SQUAWK BOXES AND LIGHTS AND EVERYTHING ELSE. BUT THERE WILL BE CAPITAL OUTLAYS. IT'S GOING TO GET ADDED TO THIS AS WE GO THROUGH THE YEAR. OUT OF THE MILLION DOLLARS THAT'S SET ASIDE FOR VEHICLE PURCHASES. LIKE I SAID, WE RECOMMEND LAST NIGHT. SO I DON'T KNOW IF IT'S JUST MINOR OR MAJOR. I HAVEN'T SEEN IT YET THIS MORNING. SO BUT THAT TENDS TO HAPPEN A LOT. AND WE JOKED ABOUT IT EVEN IN POLITICAL PARTY. SO THAT CAPITAL OUTLAY NUMBER WILL CHANGE. TRUSTEE. RIGHT AND IT WILL GO UP. SO OUR AMOUNT OF SOFTWARE SERVICES REMAINS FLAT. OUR POPULATION IS GROWING. BOOK READ. WHY ARE WE HERE? WHY ARE WE FLASHING? DOES THAT MEAN WE'RE NOT? THAT MEANS THAT. WHAT CAN HEAR YOU BECAUSE. THERE YOU GO. CAN WE TAKE A SHORT BREAK? SURE. IT'S JUST A SHORT BREAK. BACK. FINISH THIS. NO, IT'S OKAY. HEY, TONY. HOW ARE YOU? HEY. I SAW YOU LAST NIGHT. YEAH. THIS IS JANELLE. ALL MY BUDDY DOWN IN 204 A. THANK YOU ALL. THANK YOU. YEAH, YEAH, YEAH, YEAH. THEY ALL WENT OFF. THEY STARTED BLINKING RED NOW. ALL RIGHT. IT'S TRUE ABOUT GREEN. THROUGH IT, MAKE SOME NOISE. AND THAT'S WHAT'S NICE ABOUT IT. MINE'S GREEN, AND I GOT IT. YES, THAT'S WHAT WE'RE DOING. WE'RE NOT DOING ANYMORE. I GOT IT. OKAY. LIKE YOU SAID, THE LAYOUT IS THERE, AND. YEAH, GO AHEAD AND PUSH THAT RED BUTTON FLASHING. SO THAT'S GOING ON. AND AT THE SAME TIME. OH, MAN, THAT WAS. YOU CAN HAVE IT. NOT ALLOWED. THAT IS PART OF IT IS DIET AND. NOT THAT. IT'S ALL. IT'S ALL THIS. COMMITTED TO IT FOR 75 DAYS. PHENOMENAL. I BELIEVE YOU. THAT'S. THAT'S MY FAVORITE. IT WAS ALL YOU JUST. YEAH. I HAVEN'T LOST WEIGHT, BUT I HAVE REDISTRIBUTED IT. YEAH. YEAH. OR I'M BACK. WE'RE WE'RE LIVE AGAIN ON OUR AUDIO, JANELLE. YES, WE ARE. ALL RIGHT. VERY GOOD. LET'S GO AHEAD AND LET'S SEE. SHEILA, GO RIGHT AHEAD. OKAY. SO I'M NOT GOING TO COVER ANY MORE OF THE DETAIL RELATED TO THE GENERAL FUND. NOW THAT YOU UNDERSTAND THE FORMAT, I ENCOURAGE YOU TO READ IT. IF YOU HAVE QUESTIONS, PLEASE EMAIL. MIKE AND I, WE'RE HAPPY TO ANSWER THEM VIA EMAIL OR VIA A PHONE CALL, AND WE'RE HAPPY TO ADJUST AND TALK TO MANAGEMENT AS WE NEED TO. [01:05:09] BUT ANY QUESTIONS YOU HAVE, WE'RE HAPPY TO ANSWER THEM. SO IF YOU GO RIGHT AHEAD, MOVE ON TO THE SPECIAL REVENUE TAB BEFORE WE MOVE TO THE SPECIAL REVENUE. ANY QUESTIONS FOR SHEILA? COUNSEL? ALL RIGHT. OKAY. SO YOUR SPECIAL REVENUE FUND INCLUDES 24 FUNDS THAT HAVE VARIOUS RESTRICTED USES AND WHATEVER THE REVENUE AND EXPENDITURES ARE RESTRICTED FOR EACH LITTLE FUND MAINTAINS THOSE USES AND MONITORS THE USE OF THOSE FUNDS. ON PAGE SF ONE YOU SEE YOUR BEGINNING FUND BALANCES FOR ALL THE FUNDS AS WELL AS THE REVENUES. YOU'LL SEE THAT BEGINNING FUND BALANCES ARE AT 41.7 MILLION AND THE REVENUES PROJECTED FOR NEXT YEAR ARE 67.8 MILLION. WHEN YOU TURN THE PAGE TO SF TWO, YOU'RE GOING TO SEE YOUR PROJECTED EXPENDITURES AT 95.2 MILLION AND YOUR ENDING FUND BALANCE OF 14.3 MILLION. THIS IS IMPORTANT BECAUSE IN THE SPECIAL REVENUE FUND SPECIFICALLY, WE BUDGET ALL OF OUR FUND BALANCE AS WELL AS THE REVENUE FOR WE ALLOCATE IT IN THE EXPENDITURES TO ALLOW FOR SPENDING AS THE YEAR GOES ON. THESE FUNDS ARE RESTRICTED WITHIN THEMSELVES, BUT WE WANT ALL THAT FUNDING AVAILABLE FOR COUNCIL TO USE AS NEEDED THROUGHOUT THE YEAR. AND SO THIS IS ONE OF THE FEW AREAS WHERE OUR EXPENDITURES ALWAYS OUTPACE OUR REVENUE, BUT IT'S BECAUSE WE'RE BUDGETING TO SPEND THE FUND BALANCE. ARE THERE ANY QUESTIONS ABOUT THAT? WELL, I HAVE A QUESTION ON SF ONE. YES, YOU HAVE DOWN THERE. WE'VE GOT THE CONVENTION CENTER SURPLUS AND OKAY, I'VE ANSWERED MY OWN QUESTION LOOKING AT THAT, THE HOT FUNDS WHICH WERE BROUGHT ONLINE INTO THE CITY BUDGET IN FALL OF 22, SO ALMOST A YEAR AGO NOW YOU'LL SEE IS THE VERY LAST ITEM LISTED. AND YOU'RE SEEING ON THE FUND BALANCE SECTION, YOU'RE SEEING THE FUND BALANCE THAT WAS BROUGHT OVER. AND THEN ON THE REVENUE SIDE, YOU'RE SEEING THE PROJECTED REVENUE RELATED TO HOT FUNDS THAT 37.1 MILLION. AND IF I CAN BRING YOUR ATTENTION TO THE GRAPH ON THE POWERPOINT, YOU'LL SEE THAT HOT FUND SUMMARY ON THE FAR RIGHT IS RED REALLY, REALLY HIGH COMPARED TO EVERYTHING. AND IT'S KIND OF SKEWED. YEAH. AND IT MAKES IT REALLY EVEN HARD TO SEE SOME OF THOSE SMALLER FUNDS. BUT ESSENTIALLY THE HOT FUNDS ARE SUCH A LARGE SOURCE OF REVENUE THAT THEY DO DWARF ALMOST EVERYTHING ELSE GOING ON IN THE SPECIAL REVENUE FUND NOW. BUT A LOT OF THIS IS ALLOCATED TO THE PARK BOARD. AND SO WHAT YOU'RE GOING TO BE SEEING HERE IS THE MONEY COMING IN THE PARK BOARD BUDGET, THE MONEY GOING OUT TO THE PARK BOARD, BUT WE NEED TO CAPTURE IT FOR OUR RECORD KEEPING PURPOSES. JUST JUST FOR JUST FOR RELATIVITY'S SAKE. KEEP IN MIND YOUR HOT TAX REVENUE IS QUICKLY APPROACHING YOUR COMBINED PROPERTY AND SALES TAX. YES, THE LARGE MONEY THAT OUT JUST KIND OF LIKE THAT GUY, THE THE PARKING MANAGEMENT FUND ITEM IN YOUR SPECIAL REVENUES. YES, THAT IS THE PARKING FEES THAT WE ENACTED HERE AT COUNCIL. THE DOLLAR. YEAH. THAT'S YOUR DOWNTOWN. THAT'S THE DOWNTOWN PARK. OH, THAT'S THE DOWNTOWN. WE'VE HAD WE'VE HAD THAT FUND FOR A NUMBER OF YEARS, WHEREAS THE LONG TERM PARKING IS IN THE GENERAL FUND. IT IS NOT IN THE SPECIAL REVENUE FUND. OH, IT'S IN THE GENERAL FUND, YES. WHAT ABOUT THE TARIFF FOR THE PASSENGERS AT THE ALSO GENERAL FUND? GENERAL FUND? IT'S AT THE BOTTOM. THAT'S PART THAT'S WHY YOU REMEMBER ME TALKING TO COUNCIL MEMBER ROBB ABOUT THAT. THAT'S WHY YOUR REVENUES ARE YOUR IT'S SHRANK BECAUSE WE'VE ADDED ALL THAT OTHER REVENUE TO THE GENERAL FUND AS REQUESTED BY COUNCIL. OKAY. GF5 THAT'S IN GF5. AND THEY JUST LOOK AT THAT BOTTOM RIGHT HAND CORNER OF THE CHART, LONG TERM PARKING REVENUE, CRUISE PASSENGER CHARGES. OKAY. CRUISE SEE YOUR CRUISE PASSENGERS, SEE YOUR LONG THAT'S LONG TERM PARKING REVENUE. GOTCHA. COME IN ABOUT 1.8. RIGHT. WHAT DID WE MISS? CAN I GO BACK TO MY QUESTION? SORRY. JUST SUPER EXCITING. WE'VE MOVED ON, BUT 1.8 IS THE TOTAL OF THE LONG TERM PARKING. I SEE THE CRUISE PASSENGER. OKAY, THAT SOUNDS GOOD. MARIE, YOU HAD QUESTIONS. I WANT TO GO BACK TO MY QUESTION. SO ON THE AMOUNT OF POLICE OFFICERS, THAT NUMBER HAS BEEN FLAT AS FLAT, 22, 23, 24. [01:10:06] OUR POPULATION HAS GROWN. TOURISM HAS GROWN. ARE WE GOING TO LOOK AT WHEN WE MAY NEED TO ADD MORE POLICE OFFICERS? OUR POPULATION, WE ALREADY HAVE TWICE AS MUCH AS MOST CITIES OUR SIZE. THE CHIEF HAS NOT INDICATED THAT THAT'S BEEN AN ISSUE. OUR GOAL IS TO GET TO FULL STAFFING FIRST BEFORE WE SEE IF WE NEED TO ADD ANY OTHERS. AND HOPEFULLY WITH OUR. ARE WE ON STAFFING? I THINK WE'RE DOWN ABOUT 13 RIGHT NOW. 13? OKAY. SO LAST I TALKED TO, WE WERE DOWN LIKE 21, 30. 30. VERY GOOD. ANY OTHER QUESTIONS, MARIE? NO, BECAUSE I MISSED. WHAT PAGE ARE WE ON? WE ARE IN THE SPECIAL REVENUE FUND AND WE JUST COVERED SPECIAL REVENUE FUND ONE AND TWO, WHICH ARE THE SUMMARY FUND BALANCE TO REVENUE EXPENDITURE AND THEN YEAR END FUND BALANCE THERE. AND WE DISCUSSED THE FACT THAT THE HOT FUNDS ARE THE LAST GROUP OF THESE SPECIAL REVENUE FUNDS AND THAT THE AMOUNT OF HOT FUNDS KIND OF DWARFS ALL THE OTHER SPECIAL REVENUE FUNDS. IF YOU LOOK AT THE GRAPHIC ON THE POWERPOINT SLIDE, IF WE MOVE ON TO SF10, I WANT TO DRAW YOUR ATTENTION TO THE INFRASTRUCTURE AND DEBT SERVICE FUND. THIS IS THE 8% OF YOUR TOTAL GENERAL FUND REVENUE THAT IS TRANSFERRED FOR THE PURPOSES OF INFRASTRUCTURE AND PAYING OFF DEBT IN FY 2024. WE ARE NOT USING ANY OF THESE FUNDS FOR THE DEBT OBLIGATION BECAUSE THE DEBT THERE WAS AN OBLIGATION THAT RETIRED IN FY 23 THAT WILL THAT HAS RESULTED IN A LOWER DEBT SERVICE OBLIGATION FOR FY 24. AS A RESULT OF THAT, WE DO NOT NEED THE INFRASTRUCTURE AND DEBT SERVICE FUND MONEY TO SUPPORT THAT. AND YOU SEE THE ALLOCATIONS HERE TOTALING 11 MILLION, 11.2 MILLION FOR FY 24. BASICALLY WHAT WE'VE DONE IS WE'VE KIND OF PLUGGED THAT A LITTLE BIT AND THAT WE'RE BUYING THE TOWER TRUCK FOR THE FIRE DEPARTMENT. YES. WHAT ARE WE GOING TO DO WITH THE OLD TOWER? WELL, I CAN TELL YOU MY PLAN WOULD BE TO TRY TO WOULD BE I'M LOOKING WE'RE GOING TO WE'RE GOING TO TRY TO REHABILITATE IT AND USE IT AS A RESERVE. WE'VE NEVER HAD A RESERVE TOWER. I'D LIKE TO HAVE A RESERVE TOWER. THE ONLY PROBLEM IS THESE THINGS DON'T THEY DON'T VINTAGE WELL, AND THEY'RE EXPENSIVE TO KEEP. BUT IT'S IT'S WE'RE GOING TO TRY TO GET SOME MINOR REHAB REHAB DONE TO IT. WE ARE EXPECTING HOPEFULLY IN THE NEXT THREE WEEKS, OUR THIRD LADDER WILL BE THE FIRST TIME GALVESTON'S EVER HAD THREE AERIAL APPARATUSES IN SERVICE AT ONE TIME. BUT I'D LIKE TO HAVE AT LEAST ONE RESERVE AERIAL APPARATUS. I WANT TO TALK ABOUT THAT EQUIPMENT SOMEDAY IN THE FUTURE. NOW IS NOT THE TIME. OKAY? SURE. BECAUSE I KNOW WE WERE GOING TO BUY A COMBO. WHAT HAVE YOU CALL THE. WE DID QUAD. WE DID. QUINN. QUINN. QUINN. YEAH. ANYWAY, MAYBE. MAYBE SOME. TECHNICALLY, OUR SECOND LADDER APPARATUS NOW IS A QUINT. WE CAN. WE CAN TALK ABOUT THAT. WE CAN TALK ABOUT THAT. THEY DO, BUT THEY DON'T. I MEAN, SORRY, I STARTED IT RIGHT? IT DEPENDS ON THE DEPARTMENT AS TO WHETHER THEY LIKE THEM OR HATE THEM. SO ALSO IN THE SPECIAL REVENUE FUND, I DO WANT TO DRAW YOUR ATTENTION TO PAGES 52 TO 61, WHICH IS WHERE WE'RE CAPTURING THE HOTEL OCCUPANCY TAX FUNDS. YOU WILL SEE THE SUMMARY ON SPECIAL OR ON SF 52, WHICH CAPTURES THE TOTAL AMOUNT OF REVENUE AND THE TOTAL AMOUNT OF PROPOSED EXPENDITURES. WE HAVE NOT RECEIVED THE PARK BOARD BUDGET YET, SO THERE MAY BE SOME CHANGES TO THIS WHEN WE RECEIVE THEIR BUDGET AND WHEN YOU APPROVE IT IN SEPTEMBER. BUT ESSENTIALLY THE AGREED UPON AMOUNT FOR THE PENNY IS 3.3 MILLION THIS YEAR AND THE PARK BOARD IS ESTABLISHING THEIR BUDGET BASED ON THAT. AND WE'VE ALLOCATED THAT 3.3 MILLION PER PENNY BASED ON WHAT WE KNOW THE LEGAL SPLIT OUT IS AND THEY'RE GOING TO GIVE US THE DETAIL THAT MIGHT CHANGE SOME OF THE ITEMS IN THE FURTHER PAGES FOR PROPOSED FY 24. BUT THE CATEGORIES ARE GOING TO STAY ABOUT THE SAME SIZE. AND AGAIN, WHAT I WANT TO SAY, THE TRICKLE DOWN FUND IS NOT A PART OF THIS COLLECTION OF FUNDS. THAT MONEY REALLY, IT CARRIES ALL THE HOTEL TAX RESTRICTIONS, BUT IT'S KIND OF A POST HOT FORM OF REVENUE FOR US. IN MY WHEN YOU SAY YOU HAVEN'T RECEIVED THE PARK BOARD'S BUDGET, SO I SHOULD SAY WE RECEIVED IT. HOWEVER, WE HAVEN'T FULLY REVIEWED IT. I RECEIVED IT YESTERDAY. SO BUSY WITH THIS BOOK SHE RECEIVED. I RECEIVED IT YESTERDAY. AND SO WE HAVEN'T FULLY SYNTHESIZED IT AND PUT IT IN HERE. AND YOU WILL SEE THAT WE JUST TRIED TO ALLOW FOR IT HERE, BUT WE'LL DRILL DOWN ON IT NOW THAT WE'RE RIGHT. SO SO JUST SO WE KNOW THAT THAT'S BEEN TURNED IN FOR IT HAS. IT HAS. AND I APOLOGIZE FOR THAT. I JUST DIDN'T SEE IT TILL YESTERDAY. THERE'S NO INTENTION TO TRY TO MIRROR THEIR LINE ITEM BUDGET. I JUST JUST IT SOUNDED LIKE FIRST OFF, IT SOUNDED LIKE THEY DIDN'T TURN IT IN. [01:15:01] NO, THEY SOUNDED LIKE THEY JUST GOT IT THE OTHER DAY. AND IN REALITY, IT WAS TWO WEEKS AGO. RIGHT. ARE THEY IN THE END OF JULY, SHEILA, THE WHAT IS THE PENNY BEING FORECAST AT 3.3 MILLION. 3.3 MILLION A LOT NOT TOO LONG AGO IS 600,000. YEAH, IT'S GROWN A GREAT DEAL. IT'S GROWN QUITE A BIT. YEAH, OF COURSE. AND SO IF WE MOVE ON TO THE DEBT SERVICE FUND TAB, WILL YOU PROVIDE THE HIGHEST LEVEL SERVICE? THE. I JUST WANT TO GO OVER THE SUMMARY WITH YOU. ON PAGE ONE, WE WILL SEE THE TOTAL OUTSTANDING DEBT OBLIGATION FOR THE CITY OF GALVESTON AS OF OCTOBER 1ST, 2023. THIS INCLUDES ALL THE DEBT. SO YOU WILL SEE THE TOP SECTION IS DEBT SERVICE PAID FOR BY PROPERTY TAXES. THAT OBLIGATION, THE PRINCIPAL RELATED TO THAT IS 48.2 MILLION. THE INTEREST AT 17.9 MILLION FOR A TOTAL OUTSTANDING OUTSTANDING DEBT AT 66.2 MILLION FOR OCTOBER 1ST. BELOW THAT, YOU'LL SEE THE AMOUNTS RELATED TO HOTEL OCCUPANCY, TAX REVENUE, BONDS, WHARVES AUTHORITY, REVENUE BONDS, IDC CERTIFICATES OF OBLIGATION AND SANITATION CERTIFICATES OF OBLIGATION. AND THEN BELOW THAT YOU'LL SEE THE UTILITY FUND OBLIGATIONS THAT ARE BEING USED IN THE WATER AND SEWER FUND. AND SO YOUR TOTAL OUTSTANDING DEBT IS THE 303 MILLION THAT'S ON THE BOTTOM RIGHT CORNER OF THAT. THE REVENUE BOND SALE THAT THE CITY IS WORKING WITH THE PORT ON RIGHT NOW IS NOT IN THESE NUMBERS BECAUSE IT HASN'T TAKEN PLACE YET. AND IF I MAY ASK, HOW DOES THIS LOOK YEAR OVER YEAR, ESPECIALLY IF YOU TAKE THE WATER, WATER DEBT SERVICE, THIS HAS GONE DOWN YEAR OVER YEAR SINCE WE RETIRED DEBT. AND SO UNLESS YOU ISSUE NEW DEBT, THIS IS ALWAYS GOING TO DECREASE YEAR OVER YEAR. AND OUR CITY HAS, BY COMPARISON, HAS VERY LOW DEBT ON DEBT. SO THE CHART ON YOUR NEXT PAGE TWO SHOWS YOU WHAT THE PRINCIPAL AND INTEREST PAYMENTS ARE FOR JUST THIS FISCAL YEAR ON THAT LIST OF OBLIGATIONS. SO THESE ARE THE PAYMENTS THAT WE ARE MAKING FROM THE VARIOUS REVENUE SOURCES WE'RE ALWAYS PAYING. PRINCIPAL YES, SURE. SO THE ONLY LINE I WOULD DEFINITELY DRAW YOUR EYES TO IS NEAR THE TOP THERE ON DF2, YOU'LL SEE THE SUBTOTAL PROPERTY TAX SUPPORTED DEBT SERVICE THAT TOTAL 4.677 MILLION IS WHAT YOUR DEBT SERVICE TAX RATE PAYS OFF. OKAY. YOUR DEBT SERVICE TAX RATE. SO YOUR TAX RATE HAS TWO PORTIONS. IT HAS THE PORTION AND THE INS PORTION THAT 0.408850 HAS TO SPLIT AND THE INS PORTION IS PAYING THAT 4.6 IS INTEREST IN SINKING. RIGHT. AND WHAT PERCENTAGE OF THE TAX RATE IS INS RATE? IS THAT PERCENTAGE? IT'S ABOUT A 10TH. YEAH. SO IT'S RIGHT AROUND $0.04. AND YOUR THIS BUDGET IS LEVYING ABOUT $40.41. THERE ARE CITIES THAT HAVE 30 OR 40% OF THEIR TAX RATE IS DEAD. SO SO WHEN WE LOOKED AT IT, WE COMPARED GALVESTON WITH OTHER SIMILAR SIZED CITIES, POPULATION WISE AND THE OTHER CITIES IN THE METRO AREA, WE HAVE BY FAR THE LOWEST AMOUNT OF DEBT AND THE LOWEST DEBT TAX RATE. SO THANK YOU. SO WE ONLY HAVE ABOUT $66 MILLION THAT IS PAID, THAT IS BEING REPAID THROUGH PROPERTY PROPERTY TAX. YES. EVERYTHING ELSE IS REVENUE BONDS OR ENTERPRISE FUNDS. 4.7 IS PROPERTY TAX. WITH THE PORT'S DEBT ISSUANCE, THEY'LL HAVE MORE DEBT THAN WE DO ON GENERAL OBLIGATION. AND A SIGNIFICANT PORTION OF THAT DEBT CAME FROM THE 2017 $6,263 MILLION BOND FOR INFRASTRUCTURE, WHICH WE'RE DOWN TO ABOUT 46 MILLION ON THAT. ALL RIGHT, SO PROJECTS ARE ALL COMPLETE. IF YOU MOVE ON TO THE TAB FOR ENTERPRISE FUNDS, THE PAGES I'D LIKE TO DRAW YOUR ATTENTION TO ARE PAGES TWO AND THREE. YOU'LL SEE ON PAGE F TWO, YOU HAVE YOUR SUMMARY ONCE AGAIN WITH YOUR BEGINNING FUND BALANCE, YOUR PROJECTED REVENUE EXPENDITURES. YOU WILL NOTE THAT THE EXPENDITURES ARE HIGHER THAN YOUR REVENUE. THE REVENUE ARE PROJECTED AT 54.8 MILLION EXPENDITURES IS 60.8. THIS IS DRIVEN BY CAPITAL OUTLAY. THE FUND BALANCE IS BEING SPENT DOWN TO PURCHASE EQUIPMENT AND MACHINERY THAT THE ENTERPRISE FUNDS ARE IN NEED OF. [01:20:06] AND SO THAT'S WE TRY TO ALIGN SOME OF OUR FUND BALANCE PURCHASES WITH ONE TIME LARGE CAPITAL EXPENDITURES. THEY'RE NOT RECURRING. SO WE FEEL COMFORTABLE SPENDING DOWN TO GET US DOWN TO OUR STATUTORY LIMITS RATHER THAN JUST KEEP BUILDING UP A FUND BALANCE. WE'D RATHER USE THAT TO HELP OFFSET THE RATES. OKAY. AND SO IF YOU LOOK AT PAGE F THREE, THAT'S WHERE YOU'RE GOING TO SEE THE DEPARTMENTAL BREAKOUT OF EXPENDITURES AS WELL AS THE CATEGORY BREAKOUT OF EXPENDITURES FOR YOUR TOTAL FY 24 BUDGET OF $64 MILLION IN ALL YOUR ENTERPRISE FUNDS. SO THAT INCLUDES YOUR COMBINED UTILITY, SANITATION, DRAINAGE AND THE AIRPORT. OKAY. IF WE MOVE ON TO THE INTERNAL SERVICE FUNDS, THESE ARE THE FUNDS THAT WE SPLIT, THE COSTS INCURRED BY THESE DEPARTMENTS THAT PROVIDE SERVICES INTERNAL TO THE CITY ARE SPLIT OUT TO THE VARIOUS OTHER FUNDS YOU WILL SEE ON PAGE IF1 THAT BREAKDOWN. ONCE AGAIN, THAT SUMMARY BREAKDOWN SHOWING ALL THE DEPARTMENTS THAT ARE INCLUDED IN THIS YOUR TECHNOLOGY, YOUR CENTRAL GARAGE, YOUR INSURANCE WORKER'S COMP, HEALTH AND LIFE INSURANCE AND PROJECT MANAGEMENT AND THE AMOUNTS ASSOCIATED WITH THESE. ONCE AGAIN, YOUR BEGINNING FUND BALANCES, YOUR REVENUES THAT 32.2 MILLION AND YOUR EXPENDITURES AT 31.9 MILLION FOR AN ENDING FUND BALANCE OF 12 MILLION. WE'RE BASICALLY KEEPING THE FUND BALANCE VERY LEVEL. YOU WILL NOTICE THAT THE BIG INCREASE IS PROBABLY IN THE HEALTH AND LIFE INSURANCE FUND, WHICH WE'RE NOT SURPRISED ABOUT. THAT'S THAT 10% WE'VE BEEN TALKING ABOUT. YOU YOU HAD MENTIONED TECHNOLOGY FUND. WAS THAT UNDER A CERTAIN THAT'S UNDER CENTRAL SERVICES FUND. IT INCLUDES CENTRAL SERVICES FUND, INCLUDES INFORMATION TECHNOLOGY, MAILROOM FACILITIES, COMMUNITY OUTREACH. OKAY. SO IF YOU WOULD LIKE TO MOVE ON TO THE EXCITING PART, WHICH IS THE CAPITAL IMPROVEMENT PLAN, IF YOU MOVE ON TO THAT TAB, YOU'LL SEE ON PAGE ONE THE SUMMARY GRAPH OF THE CAPITAL IMPROVEMENT PROGRAMS BY THE AREA IN WHICH THEY ARE BEING COMPLETED IN. SO YOU'LL SEE THE LARGEST AREA IS WATER AT $219 MILLION AND FOLLOWED BY DRAINAGE AT 237 MILLION AND SEWER AT 154 MILLION. AS A REMINDER, THIS IS COSTS AND PROGRAMS OVER A FIVE YEAR PERIOD OF TIME. SO WE'RE NOT PLANNING ON SPENDING ALL OF THIS IN FY 2024. WE ARE. THIS IS OUR PROJECTED COSTS AND PROGRAMS FOR THE ENTIRE FIVE YEARS MOVING THROUGH 2028. MARIE, HAVE WE SEEN THIS IS FOR BRIAN? HAVE WE SEEN DIFFERENTIAL IN OUR COSTS SINCE WE STARTED DOING THE DETENTION PONDS, A DIFFERENCE IN OUR COST DRAINAGE AND DRAINAGE? WE'VE SEEN SOME IMPROVED POSITIVE EFFECT. YES, WE HAVE SEEN SOME POSITIVE EFFECTS ON SOME OF OUR MORE TROUBLED CORRIDORS. AND IRONICALLY, LIKE OUR 45TH STREET CORRIDOR IS ONE OF OUR MORE TROUBLED CORRIDORS. BUT WITH THE RETENTION GOING IN AND THEY PUT MASSIVE RETENTION IN AT THE NEW GROCERY STORE ON 45TH AND S, WE REQUIRED THE BANK TO DO SOME SOME SOME MITIGATION WORK. NOT WE DIDN'T REQUIRE THEM TO DO AS MUCH DETENTION AS WE DID ABSORPTIVE PAVERS AND THINGS LIKE THAT. AND WE'VE SEEN NO NEGATIVE EFFECT FROM THOSE. ACTUALLY, WE'VE SEEN A LITTLE BIT OF IMPROVEMENT. THANK YOU. IT'S KIND OF HARD TO MEASURE, THOUGH. IT'S VERY HARD TO MEASURE IT BECAUSE IT ALL DEPENDS ON THE RAIN AND THE EVENT AND EVERYTHING ELSE BUT THE SEAT OF THE PANTS ON THOSE TWO THINGS RIGHT NOW IS REALLY HAS BEEN POSITIVE WITH SOME OTHER IMPROVEMENTS, TOO, THAT WE DID IN THE AREA AS WELL. SO MOVING ON TO PAGE TWO AND THREE, YOU'LL SEE ON PAGE CP TWO ALL THE AREAS OF PROGRAMING AND THE COSTS ASSOCIATED WITH THOSE AREAS OVER THE FIVE YEAR PERIOD OF TIME FOR THAT TOTAL $768 MILLION. CAN I CONNECT A COUPLE DOTS FOR YOU GUYS? IF YOU GO WAY BACK IN HERE IN THE BOOK AND SOMEWHERE IN THE BUDGET SUMMARY WHERE MIKE LOFTON TALKS ABOUT OUR ADMINISTRATIVE OVERHEAD, IF YOU LOOK AT THE SIZE OF OUR CAPITAL IMPROVEMENT PLAN AND THE NUMBERS THAT WE'RE PUSHING THROUGH HERE AND OUR ADMINISTRATIVE OVERHEAD, IT'S REALLY AMAZING. WE HAVE AN EXTREMELY AGGRESSIVE CAPITAL IMPROVEMENT PLAN. AND ANOTHER THING I WANT TO POINT TO IS, IS THAT WE ARE LEVERAGED 50%. YOUR OTHER FUNDING SOURCES ARE COMING FROM MOST OF YOUR CAPITAL IMPROVEMENT. 50% OF IT IS COMING FROM OTHER FUNDING SOURCES. SO WE'RE VERY WELL LEVERAGED, WHICH IS WHERE YOU WANT TO BE, AND LEVERAGE NOT WITH DEBT, LEVERAGE WITH OUTSIDE FUNDS. AND YOU HAVE A VERY AGGRESSIVE CAPITAL IMPROVEMENT PLAN WITH VERY LIMITED OVERHEAD TO RUN THAT. SOMETIMES THAT GETS STRESSFUL, SOMETIMES THAT GETS DIFFICULT. BUT BUT AT THE END OF THE DAY, THE CITIZENS ARE GETTING A GOOD BANG FOR THEIR BUCK ON THEIR CAPITAL. [01:25:03] WHAT IS OUR PERCENTAGE RUNNING? ABOUT THREE OVER ABOUT 2%. ABOUT TWO? YEAH. IT'S IT'S REALLY LOW. AND I'LL TELL YOU WHAT PAGE IT'S ON. YEAH, IT IS. MIKE USUALLY MIKE WOULD ALWAYS KNOW THESE NUMBERS OFF THE TOP OF HIS HEAD. OH, WELL, I HAVEN'T MEMORIZED THEM ALL YET. YOU PROBABLY KNOWS THE. IT'S IN THERE. I SAW IT. OH, IT'S DEFINITELY IN HERE. YEAH, IT'S LIKE 2% AT THE END OF THE GENERAL FUND SECTION. YEAH, IT'S THE GENERAL FUND. YES. YES. I JUST GOT THIS MEMORIZED. YES, MIKE. MIKE IS THE MAN. OKAY? IT'S PAGE SIX. GOT A QUESTION? YES. ALL RIGHT, MR. MAXWELL, YOU MENTIONED OTHER FUNDING SOURCES, AND I SEE ON CP FOUR THAT YOU'VE IDENTIFIED SOME FUTURE GRANTS. ARE THOSE EITHER WHERE WHERE ARE THEY IN THE PROCESS? HAVE THEY ALREADY BEEN IDENTIFIED? HAVE THEY BEEN APPLIED FOR? HAVE THEY BEEN ACCEPTED? NO. WELL, THEY HAVEN'T BEEN APPLIED FOR YET BECAUSE THEY OPEN ON AN ANNUAL BASIS. MOST OF THOSE ARE OR HAZARD MITIGATION, FEMA TYPE GRANTS. AND THEY OPEN THEY WE CAN'T APPLY FOR THEM IN ADVANCE, BUT WE ANTICIPATE THEM OPENING EACH YEAR AND APPLYING FOR THEM. OKAY. AND SO THE NUMBERS THAT YOU'RE SHOWING, THERE ARE SOME PROBABLY SOME PROJECTIONS BASED UPON HISTORICAL. CORRECT. YOU KNOW, YOUR YOUR WIN PERCENTAGES. YEAH, WE HAVE DONE WE HAVE DONE VERY WELL COMPARED TO OTHER CITIES IN THAT AREA. AND A LOT OF CREDIT GOES TO TSA. BUT THE OTHER THING GOES TO THE FACT THAT WE WE KEEP THINGS SHOVEL READY, WHICH PUTS US A LITTLE BIT AHEAD. YEAH, IT'S JUST WHEN YOU POINT TO 50% FROM OTHER FUNDING SOURCES, BUT YOU IDENTIFY 227 MILLION FROM A FUTURE GRANT, THAT IS NOT ACTUALIZED YET. NO, BUT WE BUT WE'VE ALREADY BEEN THE FLYWHEEL, BUT WE'VE BEEN VERY SUCCESSFUL WITH OVER 100 MILLION OF THAT SO FAR WITH THE TWO PUMP STATIONS. SUPER. THANK YOU. SO AND THAT'S NOT ALL OF IT. YES. IF SOMEBODY HAS QUESTIONS ABOUT THE INDIRECT COST ALLOCATION, IT IS ON GF6. BUT IF NOT, I'M HAPPY TO GO ON TO WITH THE CAPITAL. SO ON PAGE CP THREE, YOU'RE GOING TO SEE, AS BRIAN POINTED OUT, YOU SEE YOUR REVENUES THAT ARE SUPPORTING THIS. AND AS WAS JUST DISCUSSED, THERE ARE OTHER FUNDING SOURCES WHICH IS DETAILED ON PAGE CP FOUR, WHERE YOU SEE WHAT'S LEFT OR ARE YOU IN THAT FIRST COLUMN. YOU'RE SEEING THE FUNDS THAT HAVE BEEN ENCUMBERED RELATED TO GRANTS ALREADY RECEIVED, FOR EXAMPLE, AMERICAN RESCUE PLAN, CDBG, THAT SORT OF THING. THERE ARE FUTURE, AS YOU NOTICE, FUTURE ITEMS LISTED AT THE BOTTOM THERE AND THEY'RE QUITE LARGE. AND SO SOME OF THESE WE HAVE TO BE FLEXIBLE AND MAKE GAME TIME DECISIONS AS WE RECEIVE FUNDING, HOW WE HOW WE MATCH THAT FUNDING, THAT SORT OF THING. BUT WE'RE PROJECTING IT OUT TO THE BEST OF OUR ABILITY ON A TIMELINE THAT WE BELIEVE IS REASONABLE. BUT WE'VE HAD REALLY GOOD REPRESENTATION. ANOTHER THING TOO IS WE'VE GOTTEN WAY MORE AGGRESSIVE WITH H-GAC ON THE TIP AND THINGS LIKE THAT. THANK THANK FOR THE MAYOR AND COUNCIL MEMBER ROBB WHO'VE BEEN VERY ACTIVE UP THERE. COUNCIL MEMBER COLLINS WAS MAKING THE SOJOURN FOR US FOR A WHILE. WE'VE GOTTEN WAY MORE AGGRESSIVE WITH THAT. SO WE'VE HAD HIGHER SUCCESS RATE FOR A LONG TIME. GALVESTON WAS ABSENT FROM THAT AND WE NEVER GOT OUR SHARE. NOW WE'RE GETTING OUR SHARE SINCE THAT'S THE COG WHERE A LOT OF THAT MONEY GOES THROUGH. AND THE OTHER THING TOO, IS WE'VE DONE A VERY GOOD JOB OF BEING READY FOR CLEANUP. THERE'S A LOT OF CITIES THAT JUMP OUT AHEAD OF US AND GET MONEY THEY CAN'T FULFILL, AND WE'RE ALWAYS IN LINE FOR WHAT DROPS OFF. KIND OF LIKE MY DOG. WE'RE WAITING ON THE EDGE OF THE TABLE TO SEE WHAT DROPS, AND WE'RE PRETTY GOOD AT IT. AND IT'S IT'S AMAZING THE AMOUNT OF MONEY THAT DROPS. YES, IT IS. AND HAVING SHOVEL READY IS A GOOD THING. I WOULD BE REMISS IF I DIDN'T MENTION AT LEAST THOSE THREE COUNCIL MEMBERS WHO HAVE BEEN SO ACTIVE UP THERE IN HELPING US GET THAT MONEY. AND TESSA, I WILL NEVER FORGET TESSA, BECAUSE SHE IS WONDERFUL. SHE'S AMAZING. SO IF YOU MOVE TO PAGE CP TEN, I WANT TO WALK YOU THROUGH THE FORMAT WE'RE USING ON ALL OF THESE CAPITAL ITEMS. SO ONCE AGAIN, YOU KIND OF HAVE A SENSE ON HOW TO READ THE DOCUMENT, THE BEGINNING OF EACH AREA. YOU'RE GOING TO SEE A NARRATIVE, A PROGRAM OVERVIEW THAT LISTS IN CONVERSATIONAL FORMAT ALL THE ITEMS THAT EACH OF THESE PROGRAMS IS INCLUSIVE OF HOW THEY ARRIVED AT THOSE ITEMS. WHAT KINDS OF CRITERIA WERE ESTABLISHED SO THAT THEY WOULD KNOW. FOR EXAMPLE, WE'RE LOOKING AT STREETS AND TRAFFIC. WHAT STREETS ARE THE ONES THAT NEED PAVED FIRST? YOU WILL SEE THAT LISTING THERE. CP 11 ON PAGE CP 1112. YOU'RE GOING TO SEE THE SUMMARY OF WHAT IS BEING PROPOSED FOR FY 24 TO FY 28. IN THE TOP SECTION, YOU SEE A LISTING OF THE PROJECTS AND YOU SEE THE COST ALLOCATED TO THOSE PROJECTS OVER THE COURSE OF THE FIVE YEARS FOR THE TOTAL OF THE FIVE YEARS. AND THEN BELOW THAT YOU SEE THE FUNDING SOURCES ASSOCIATED WITH THAT. [01:30:05] AND SO IN EACH SECTION WE ARE PROVIDING A LISTING OF ALL THE PROPOSED PROGRAMS AS WELL AS THE FUNDING SOURCES THAT WE'RE PROPOSING FOR THOSE PROGRAMS FOR ALL 6 OR 7 AREAS THAT YOU SEE IN YOUR CAPITAL PLAN, IT'S FOLLOWING THE SAME FORMAT. WE ARE HAPPY TO PROVIDE MORE OR LESS INFORMATION. OH, NO, NOT EVERYBODY. I'M GREEN. HOW BORING IS THIS THAT WE PUT THE MICROPHONES? I'M GREEN. IF YOU HIT IT ON. GOOD. WE'RE GOOD. WE'RE ON. SO WE'RE HAPPY TO GO INTO THE DETAIL ON THIS IF YOU ARE INTERESTED. BUT WHAT I WOULD ENCOURAGE YOU TO DO IS READ IT. HAVE A SENSE OF WHETHER THE PROJECTS MAKE SENSE, ARE OF INTEREST, THAT SORT OF THING. AND THIS IS WHAT IS BEING PROPOSED BY EACH DEPARTMENT. DO YOU HAVE ANY QUESTIONS ON THE CIP? ANY QUESTIONS? COUNCIL. I WILL ALSO POINT OUT THAT MANY OF YOU, WHEN MANY OF YOU FIRST RAN, SOME OF YOUR NEWER MIKE AND DAVID, BUT GOING BACK TO WHEN COUNCIL MEMBER ROB COLLINS, MAYOR BROWN, JP GOT ON COUNCIL DRAINAGE WAS A PRIORITY. YOU CAN SEE WE HAVE DIRECTED OUR SPENDING ACCORDINGLY ON DRAINAGE WHILE STILL MAINTAINING HEALTHY STREET MONEY. ALTHOUGH I WILL TELL YOU WE ARE GOING TO BE BRINGING FORTH TO YOU LATER THIS YEAR OR LATER THIS, NOT THIS YEAR. BUT I SAY THAT LIKE THERE'S A LOT LEFT IN THIS YEAR WE'RE GOING TO BE BRINGING TO YOU HERE PRETTY QUICK OUR STREET ASSESSMENT. AND ONE OF THE THINGS THAT THEY'RE PROBABLY GOING TO TELL YOU IS, IS THAT TO MAINTAIN A CERTAIN LEVEL, WE MAY OR MAY NOT BE. BRIAN YES, MA'AM. I DON'T SEE A LOT IN DISTRICT SIX AND THIS BREAKDOWN. SHOW ME DISTRICT FOUR TO DISTRICT ONE OR DO WE HAVE IT BROKEN DOWN SOMEPLACE BY DISTRICT? WE DO NOT HAVE IT BROKEN DOWN BY DISTRICT, BUT WE CAN PROVIDE YOU INFORMATION. YOU CAN JUST LOOK AT THE STREETS AND YOU CAN BREAK IT DOWN BY DISTRICT. AND THERE'S A LOT OF IT THAT'S WORKED INTO GENERALIZATION, LIKE STREETS AND OVERLAY, YOU KNOW, THAT DOESN'T GIVE DISTRICTS ON THAT STREET PROGRAM RESERVES ENGINEERING PROJECT. MOST OF THAT IS WEST END. THE TRAFFIC SIGNALS ARE WEST STEWART ROADS WEST MUCH OF OUR WATER IMPROVEMENT IN THE LAST COUPLE MOST OF THE WATER IMPROVEMENT IS WEST IS ALL WEST, BUT IT'S TWO BIG WASTEWATER PLANTS. ALL RIGHT. ANY QUESTIONS? YES, GO RIGHT AHEAD ON TWO CP 35. ONE OF THE THINGS THAT IS ALSO IMPORTANT IS OUR ONGOING PROJECTS AND HOW WE TRACK THOSE AND WHAT KIND OF INFORMATION YOU'RE RECEIVING ON THOSE. AND STARTING ON PAGE CP 35, YOU HAVE THE THIRD QUARTER STATUS UPDATE ON THE PROJECTS THAT HAVE BEEN APPROPRIATED AND ENCUMBERED AND WORK HAS BEEN DONE ON THEM. AND SO THIS SECTION CP 35 THROUGH, I WANT TO SAY 45 IS ALL OF THE CURRENT PROJECTS AND WHERE WE ARE AT ON THOSE PROJECTS AND WHERE SPENDING IS AND WHERE ACTIVITY IS ON THOSE PROJECTS. AND THEN WHEN YOU TURN TO PAGE CP 48, THIS IS WHERE YOUR CASH BALANCES ARE AS RELATED TO EACH OF THE PROJECTS. AND THIS IS A REPORTED AS OF JUNE 30TH. SO THIS GIVES YOU ONE OF THE THINGS THAT IS A VERY DIFFICULT COMPARISON IS THE CURRENT FISCAL YEAR VERSUS PROJECTED FUTURE YEARS AND CAPITAL PROJECTS, BECAUSE WE'VE ENCUMBERED THEM OUT AND WE'RE IN PROGRESS. AND SO THESE PROGRESS REPORTS ARE HELPFUL TO UNDERSTAND WHAT YOU HAVE ALLOCATED IN PAST YEARS AND COMPARED TO WHAT YOU HAVE FOR FUTURE YEARS. AND THEN THE LAST THING I WANT TO BRING TO YOUR ATTENTION, IN CASE ANYONE ASKS, IS PAGE AP 17 IS YOUR TAX CALCULATION WORKSHEET, WHICH IS NOW REQUIRED TO BE A PART OF YOUR BUDGET DOCUMENT, AND THAT IS IN THERE AS WELL. FINAL REMINDER, WE ARE THE LIGHT AT THE END OF THE TUNNEL IS SEPTEMBER 14TH. THE ACTION ITEMS THAT WILL COME BEFORE YOU LATER IN THIS COUNCIL MEETING ARE RELATED TO SETTING THE PUBLIC HEARING ON BOTH THE BUDGET AND THE TAX RATE. THE ADOPTION OF THE BUDGET WILL BE CONSIDERED AFTER THE BUDGET PUBLIC HEARING, AND THAT BUDGET IS BASED ON REVENUE FROM A PROPOSED TAX RATE OF 0.408850, WHICH YOU WILL ALSO ACKNOWLEDGE IN YOUR ACTIONS THIS OR AT THE SECOND HALF OF THE MEETING. AND THEN THERE WILL ON THE 14TH. THERE WILL ALSO BE A PUBLIC HEARING ON THE TAX RATE AND THE ADOPTION OF THAT. I WOULD LIKE TO REMIND YOU THAT THE BUDGET TAKES FOUR AFFIRMATIVE VOTES TO APPROVE, BUT THE TAX RATE REQUIRES FIVE BECAUSE WE ARE PROPOSING A TAX RATE HIGHER THAN THE NO NEW REVENUE. AND SO THAT'S A STRATEGIC ITEM THAT WE NEED TO KEEP IN MIND AS WE HEAD INTO THE MEETING ON THE 14TH. AND JUST SOMETHING ELSE I'D LIKE TO MENTION. WE HAVE THE STATE HAS DONE HAS GONE TO GREAT LENGTHS IN THE SIMPLIFICATION OF MAKING YOU UNDERSTAND THINGS. [01:35:03] YOUR TAX RATE CALCULATION IS TEN PAGES LONG, ONE OF THEM TEN PAGES LONG. YOU KNOW, WE HAVE ON OUR COUNCIL, WE HAVE ON OUR AGENDA TODAY, WE WILL BE APPROVING SETTING THE SEPTEMBER 14TH PUBLIC HEARING FOR OUR BUDGET AND FOR OUR TAX RATE. SO THAT'S ON OUR AGENDA TODAY. THOSE ARE MAJORITY VOTES ON THOSE TWO ITEMS. SO THE TAX RATE VOTE INCLUDES THE APPROVAL OF A PROPOSED RATE? YES, THAT IS CORRECT. WHAT WE'RE RECOMMENDING IS THE 488. THAT IS CORRECT. YES, SIR. I HAVE A QUESTION NOT ABOUT TAX RATE. I'M GOING BACK TO THE CIP AND ROADS. YES, MA'AM. SO WE HAVE NOT RECEIVED THE STREET STUDY YET. WE WE'VE GOTTEN A DRAFT OF IT AND WE ARE GOING THROUGH IT WITH THEM NOW AND FINE TUNING IT WITH THEM BECAUSE THERE ARE SOME STREETS THEY DIDN'T HIT AND SOME OTHER THINGS LIKE THAT. WE DON'T HAVE WE'RE NOT 100% ON THE STREET STUDY YET, ARE WE? NOT YET. YEAH. SO WE'VE RECEIVED SOME EARLY NUMBERS, BUT WE'RE TRYING AND THEY HAVEN'T PUT IT ALL INTO THE MAPS IN THE FORMAT. AGAIN, BECAUSE I SEE A LACK OF DISTRICT SIX AND A LACK OF DISTRICT. NO. AND THE GOOD NEWS IS WE CAN GET THE STREET STUDY. WE'VE AGREED WORSE FIRST. SO WHATEVER THAT STREET STUDY SAYS WE'RE GOING TO DO, WE'RE GOOD. SHEILA, THANK YOU. YOU'RE WELCOME VERY MUCH. COUNCIL, ANY QUESTIONS FOR SHEILA OR MIKE, AS USUAL? GOOD JOB. GREAT JOB. GREAT JOB. I WOULD TELL YOU, I'M GOING TO SAY THIS BECAUSE MIKE AND I HAVE GOTTEN TO BE VERY GOOD FRIENDS OVER THE YEARS. BUT SOME DAYS I FEEL LIKE WE TRADED A TOOTHPICK FOR A LUMBER YARD WITH SHEILA DOING THIS. BUT MIKE HAS DONE A FANTASTIC JOB FOR US. MIKE HAS ANNOUNCED HIS RETIREMENT AT THE END OF SEPTEMBER, BUT MIKE IS NOT GOING AWAY. MIKE'S GOING TO ENJOY A LITTLE TRAVEL TIME, BUT HE'S GOING TO COME BACK AND WORK WITH US, ESPECIALLY ON OUR MODELING AND THINGS LIKE THAT AND SOME OF OUR DEBT WORK. BUT I WILL TELL YOU, YOU ARE IN EXCELLENT HANDS WITH SHEILA, AND I ALWAYS HAVE TO SAY THIS WHENEVER WE DO OUR BUDGET, THANK GOD FOR DEBBIE PIERCE. ABSOLUTELY. I GUARANTEE YOU WE JOKE ABOUT MIKE AND HIS PAGE NUMBERS. DEBBIE HAS THIS COMMITTED TO MEMORY AND SHE'S DONE THIS FOR SO LONG. THERE'S JUST NONE BETTER THAN THAT. SO SHEILA AND DEBBIE HAVE DONE THIS. WE JOKE WITH DEBBIE. SHE CAME IN YESTERDAY. WE SAID, DEBBIE, JUST ONE MORE CHANGE. AND THEN WE HAD WE HAD TO GO TO THE E.R. BUT WE HAVE THEY HAVE BOTH DONE A FABULOUS JOB. AND I WANT TO GIVE THEM MY THANKS ON THIS. AND I AM JUST SO HAPPY TO HAVE SHEILA HERE. AND I CAN'T TELL YOU HOW MUCH I'M GOING TO MISS MIKE, BUT I KNOW HE'S GOING TO BE AROUND. SO I FEEL GOOD ABOUT THAT, TOO. REALLY. YOU HAVE TO SAY THIS IS THE PERFECT EXAMPLE OF A GREAT SUCCESSION PLAN. SO BRAVO. AND I WILL ALSO TELL YOU, WHEN MIKE LOFTON FOUND US, MIKE WAS ONE OF THE FIRST HIRES THAT I DID HERE. MARIE KNOWS THIS VERY WELL. WE WEREN'T EVEN BALANCING OUR CHECKBOOK. WE HAVE COME A LONG WAY. AND THE FINANCIAL SUCCESS OF THIS CITY, AS MUCH AS I WOULD LIKE TO TELL YOU IT WAS ME. MOST OF THE FINANCIAL SUCCESS FOR THIS CITY HAS COME FROM HAVING MIKE LOFTON HERE. AND WHAT IS BETTER THAN HAVING MIKE LOFTON HERE, HAVING SOMEBODY THAT MIKE LOFTON TAUGHT AND THAT'S SHEILA. SO WE HAVE WE ARE IN GOOD HANDS. SO AND YOU AND YOU HAVE NO IDEA THE CONDITION THAT THE FOLKS WERE IN WITH HIS PREDECESSOR. IT WAS JUST FLAT FRIGHTENING. MIKE IS DONE. WE WERE BLESSED TO HAVE MIKE, AND WE'RE GOING TO CONTINUE TO BE BLESSED TO HAVE HIM HERE. BUT WE ARE EVEN MORE BLESSED TO HAVE SHEILA HERE IN HIS STEAD. SO WE'RE IN GOOD SHAPE. WHERE ARE YOU TRAVELING TO? FIRST THE NORTHEAST TO SEE THE HALLS OF FAME. WONDERFUL BASEBALL, FOOTBALL. NOT ROCK AND ROLL AND ROLL. ALL RIGHT. HE WASN'T EITHER. THANK YOU SO MUCH, MIKE. THANK YOU. GREAT JOB AS USUAL. THANK YOU SO MUCH. LET'S MOVE TO THE THREE D, PLEASE, JANELLE. [3.D. Discussion Of Deficiencies And Costs Associated With Complying With FAA Part 139 Certification Requirements From Vesta Rea & Associates, LLC (M. Shahan - 20 Min)] OKAY. THREE D DISCUSSION OF DEFICIENCIES AND COSTS ASSOCIATED WITH COMPLYING WITH FAA PART 139 CERTIFICATION REQUIREMENTS FROM VESTER RAY AND ASSOCIATES, LLC. MIKE, COME ON UP AND EDUCATE US ON WHAT'S GOING ON. WELL, GOOD MORNING. IT WAS ABOUT TWO YEARS AGO DURING THE MASTER PLAN PROCESS. ALL THE COUNCIL ASKED US TO FIND OUT WHAT IT WOULD COST AND WHAT IMPROVEMENTS NEED TO BE MADE TO GET INTO PART 139 AIRPORT CERTIFICATION. SO IT'S TAKEN US A WHILE. WE'VE WORKED WITH BEST ASSOCIATES AND SHE'S GOING TO PRESENT THE FINDINGS FOR YOU. BUT SHE WAS ABLE TO CONVINCE THE FAA TO WORK WITH US. AND SO WE HAVE SOME REALLY GOOD, ACCURATE DATA FROM THE FAA DIRECTLY. AND THANK YOU TO MR. LISTOWSKI FOR PARKING HIS JET OUT FOR THE PICTURE. THAT'S A NICE JET. YEAH, MAYBE ONE DAY. COULD YOU IDENTIFY YOURSELF, PLEASE? SURE. THANK YOU. YES. [01:40:03] ACTUALLY, IF YOU DON'T MIND, I PREFER TO STAND. SURE, BY ALL MEANS. FOR THE. ARE YOU GOING THROUGH ALL OF THAT? I'M GLAD I WORE BRIGHT YELLOW BECAUSE I THOUGHT I'D SORT OF BRIGHTEN IT UP. YOU'RE. YOU'RE ON BEING TELEVISED TO THE COMMUNITY, SO IF YOU WOULD IDENTIFY YOURSELF AGAIN, PLEASE. YEAH. I'M VESTA RAY GILBERT. I'M THE PRINCIPAL OF A COMPANY. CALLED RESTAURANT ASSOCIATES. WE HAVE BEEN AROUND FOR ABOUT 33 YEARS, AND WE WORK WITH AIRPORTS AND ENGINEERS, ARCHITECTS AND PLANNERS THAT DESIGN AIRPORTS. AND WE ARE KNOWN IN THE INDUSTRY AS TECHNICAL PUBLIC RELATIONS PEOPLE BECAUSE WE ONLY WORK WITH TECHNICAL DOCUMENTS EVERY DAY, BUT WE ALSO INTERFACE VERY HEAVILY WITH THE FAA, THE US CUSTOMS, THE REGION AND OF COURSE TEXDOT AND OUR POSITION. SO THAT TELLS YOU A LITTLE BIT ABOUT OVERALL WHAT WE DO. I GUESS WHAT I DO SPECIFICALLY FOR THE COMPANY IS THAT I TRY TO FACILITATE SOLUTIONS FOR AIRPORTS THAT ARE HAVING CHALLENGES WITH EITHER THE FAA, US CUSTOMS OR THE REGION OR TEXDOT. AND WHAT I MEAN BY FACILITATE, I TAKE ON THINGS THAT ARE MAYBE UP AGAINST A WALL AND AREN'T MOVING VERY FAST OR HAVE A LOT OF HOOPS THEY HAVE TO JUMP THROUGH FEDERALLY, STATE WISE AND OTHER. AND I'M ABLE TO DO THAT THROUGH MY MANY YEARS OF BEING IN THIS INDUSTRY, WHICH AMOUNTS TO OVER 40. ALTHOUGH I WAS A PILOT BY THE TIME I WAS 14 AND WAS FLYING CORPORATE BY THE TIME I WAS 18. SO I COME FROM A LONG LINE OF AVIATION. BUT TODAY WE'RE GOING TO TALK ABOUT ONE THING IN PARTICULAR AND THE THING THAT YOU ALL ARE INTERESTED IN, AND THAT IS A PART 139 CERTIFICATE THAT YOU NEED FOR YOUR AIRPORT AND WHY YOU NEED IT. AND THIS IS THE ONLY SLIDE THAT I'M GOING TO READ. IT'S IMPORTANT YOU UNDERSTAND THIS, THAT THAT PART 31 CERTIFICATE IS REQUIRED FOR AN AIRPORT THAT SERVES UNSCHEDULED AND SCHEDULED OPERATIONS AND AIRPORTS THAT ARE DESIGNED FOR MORE THAN NINE PASSENGERS OR LESS THAN 30 PASSENGERS. THE 139 CERTIFICATE PROVIDES THE SCHEDULED LARGE CARRIERS, THOSE THAT CARRY A PART 131 OR A PART 135 CERTIFICATE OPERATION TO THE SAFETY ASSURANCE THAT THE AIRPORT HAS BEEN PASSED. INSPECTIONS BY THE FAA, OFFICE OF SAFETY AND THE PLANES CAN LAND AT THEIR FACILITY. AND YOU HAVE THE RUNWAY, NOT ONLY THE LENGTH, BUT THE WEIGHT TO CARRY THESE AIRCRAFT. SO THAT IS WHAT YOU'RE GOING AFTER. YOU'RE GOING AFTER THIS VERY SPECIAL CERTIFICATION THAT THE FAA HAS SO THAT YOU'RE ABLE TO ATTRACT TO MARKET A MUCH LARGER AIRCRAFT THAT CAN SCHEDULE AND COME IN HERE. THAT DOESN'T MEAN THAT YOU SHOULD THINK YOU'RE GOING TO BECOME THE NEXT HUB IN THE HOUSTON REGION. YOU WON'T. ARE YOU IN ANY WAY ARE YOU GOING TO REPLACE HOBBY OR H OR EVEN ELLINGTON AS A SPACE FOR IT? BUT WHAT YOU ARE GOING TO HAVE IS THE ABILITY TO HAVE A CONVENIENT WAY FOR LARGER AIR CARRIERS TO COME DOWN HERE, WHETHER THEY'RE SMALL COMMUTERS, WHETHER THEY'RE THE LARGER CORPORATE JETS. IT IS A MARKET THAT YOU ATTRACT, AND IT'S CERTAINLY THE CASE TODAY. SO LET'S GO TO THE NEXT ITEM HERE. AND THE NEXT ITEM I WANT TO TALK ABOUT IS WHY YOU ARE PURSUING THIS OR ASSUMING WHY YOU'RE PURSUING IT. I FINISHED THIS REPORT A FEW WEEKS AGO AND SENT IT TO MIKE, AND I THINK THE MAYOR HAS ELECTRONIC COPY OF THIS. BUT WE'RE GOING TO GO THROUGH SOME OF THE AREAS OF THIS REPORT. AND THE FIRST THING IS WHEN HE CALLED ME WAS MY FIRST QUESTION AS THE FAA FIRST QUESTION WOULD BE, WHY ARE THEY PURSUING THIS? YOU KNOW, THIS AIRPORT HAS A CERTAIN IMAGE IN MY INDUSTRY, WHETHER I'M IN NEW YORK OR WHETHER I AM IN CALIFORNIA AND A BIG CONFERENCE, THEY ASKED ME WHAT I'M WORKING ON AND I'M SAYING I'M DOING SOME WORK DOWN IN GALVESTON. WHAT ARE YOU DOING DOWN THERE? THAT'S JUST A HELICOPTER OPERATION. AND MY INDUSTRY, THIS AIRPORT IS CONSIDERED THAT IS THE PERCEPTION THAT IT ONLY DOES OFFSHORE HELICOPTER OPERATIONS. AND YOU'VE COME A LONG WAY, BABY, FROM THAT. AND IT'S ALMOST IT'S ALMOST LIKE A TOTAL REBRANDING. WE HAVE TO DO THIS AIRPORT AND GET RID OF THIS PERCEPTION. IT DOESN'T GO ALONG WITH THE PERCEPTION OF YOUR HUGE GROWTH IN YOUR CRUISE INDUSTRY. SO CERTAINLY THAT'S ONE OF THE ISSUES. THEN WE HAVE WHAT I CONSIDER THE SYMBIOTIC SYMBIOTIC, I PRONOUNCE IT THE SYMBIOTIC RELATIONSHIP BETWEEN A CRUISE INDUSTRY [01:45:07] AND AN AIRPORT. I MEAN, THEY ARE CONNECTED AT THE HIP, YOU KNOW, PARTICULARLY THE WAY YOURS HAS EXPLODED. IT IS ABSOLUTELY ASTOUNDING WHAT HAS HAPPENED HERE. AND YOU ARE NOW THE GATEWAY TO THE CARIBBEAN. AND BACK IN 79 WHEN I CAME. THERE. THAT WAS NOT THE CASE. AND FOR AN OPERATION AS BIG AS YOU'RE GETTING IN THE CRUISE SIDE, YOU CERTAINLY NEED THAT AIRPORT TO ENHANCE THAT EVEN FURTHER. AND THEN, OF COURSE, WE ALWAYS HAVE TO ACKNOWLEDGE THE FACT THAT AVIATION, AIRPORTS, EVERYTHING INVOLVED WITH AIRPORTS, JUST LIKE THE CRUISE INDUSTRY, IS A HUGE ECONOMIC ENGINE FOR THE ISLAND. AND, YOU KNOW, WE TALK ABOUT THE CRUISE INDUSTRY, WE TALK ABOUT THE OFFSHORE OIL, BUT WE MUSTN'T EVER FORGET ABOUT THE MEDICAL HIGHER EDUCATION THAT'S HERE. ALL OF THESE PEOPLE HAVE A NEED FOR AN AIRPORT THAT HAS MORE CAPABILITIES THAN WHAT YOUR AIRPORT HAS TODAY. SO I WAS BROUGHT IN TO DO THIS AND TAKE A LOOK AT HOW TO GO ABOUT IT. I'D DONE THIS BEFORE. EVERYBODY THINKS, WELL, THIS IS NO BIG DEAL. WE'LL JUST MAKE OUT AN APPLICATION AND SEND IT IN TO THE FAA. AND THERE IS NOTHING THAT'S NOT A BIG DEAL FOR AN FAA OR FOR THE GOVERNMENT, PERIOD. BUT THESE ARE THE STEPS THAT I KNEW THAT I WOULD HAVE TO GO THROUGH TO MOVE THIS THING FORWARD AS QUICKLY AS WE COULD. AND WE DIDN'T MOVE AS FAST AS I'D LIKE FOR A NUMBER OF REASONS, BUT WE HAD TO GET A JUSTIFIED JUSTIFICATION, A JUSTIFICATION LETTER TOGETHER, AND I HAD TO GO TO THE FAA REGION AND SIT DOWN AND TALK TO THEM AND SAY, THIS IS WHAT THEY WANT TO DO. WHAT DO YOU THINK? CAN THAT AIRPORT CHANGE THIS PERCEPTION AND GET THE CERTIFICATION? AND THEY SAID, WELL, WHAT ARE ALL THE ISSUES ON THAT FIELD? AND I SAID, I DON'T KNOW, BUT YOU'RE GOING TO TELL ME BECAUSE I NEED ONE OF YOUR INSPECTORS FROM THE REGION TO COME DOWN HERE AND INSPECT THIS AIRPORT. AND THAT IS EXACTLY WHAT WE DID. SO WE FIRST AT FIRST WROTE THE JUSTIFICATION LETTER AFTER I INTERVIEWED AND TALKED WITH AND GOT, I BELIEVE, A GREAT PEOPLE. I CAME IN HERE BECAUSE I HAD TO BE CONVINCED THAT EVERYBODY WAS GOING TO BE ON THIS BUS WITH ME AND I GOT SUPPORT LETTERS FROM THE MAYOR, FROM THE PORT, FROM THE CHAMBER, FROM THE GREATER ECONOMIC DEVELOPMENT PARTNERSHIP, AND OF COURSE, FOR THE AIRPORT DIRECTOR. SO NOW I HAVE BEHIND MY JUSTIFICATION LETTER. I HAD THESE FIVE SUPPORT LETTERS. I TOOK THAT THEN BACK TO THE FAA AND THEY SAID, OKAY, WE'RE CHANGING THE WHOLE THE WHOLE DEPARTMENT OVER WITH. THE TOP GUY IN SAFETY AND STANDARDS IS RETIRING. GIVE US A MONTH AND WE'LL GET SOMEBODY DOWN THERE. SO THE SECTOR CAME DOWN ON MAY THE 23RD, AND MIKE AND I SPENT A VERY, VERY LONG DAY OUT ON THAT FIELD. WE STARTED LATE MORNING AND WE WORKED ALL THE WAY TILL 9:00 AT NIGHT AND WE TURNED OVER EVERY ROCK ON THAT AIRPORT. WE WANTED TO KNOW EXACTLY WHAT THINGS ON THIS AIRPORT WOULD NOT MEET THE SPECIFICATIONS FOR PART 139 AND WE WERE ACTUALLY OUR I CERTAINLY WAS PLEASANTLY SURPRISED AT IT WAS REALLY A PRETTY DARN GOOD FACILITY. IT DIDN'T NEED A TON OF STUFF. AND SO FROM THERE THEY WENT BACK AND WROTE A LETTER TELLING ME THESE WERE THE AREAS THAT NEEDED TO BE ADDRESSED. AND THEY WERE IT WAS MAINLY JUST I CALL IT COSMETIC AREAS. A LOT OF IT WAS JUST REMOVING GRASS, IMPROVING THE SIGNAGE, SOME LIGHTS. THERE WAS A FEW CERTAIN AREAS THAT DID TAKE SOME FOCUS ON AND THAT WAS AT TAXIWAY E AND THE RUNWAY 18 GEOMETRY. AND BUT YOU CAN SEE IT WAS MARKING AND SIGNS AND LIGHTINGS. AND WE DIDN'T WE WEREN'T ABLE TO GET INTO THE FA BUILDING THAT NIGHT. BUT WE DO KNOW FROM WHAT WE ARE AWARE OF THAT IT'S GOING TO NEED A NEW FIRE TRUCK THAT CAN HANDLE THE KIND OF COMBATANTS THAT YOU NEED WHEN YOU'RE DEALING WITH JET FUEL AND ETCETERA. BUT YOUR FENCING WAS GOOD AMAZINGLY FOR WILDLIFE. WE WEREN'T GOING TO HAVE TO FENCE THE PLACE. I MEAN, THE LAST ONE I DID, WE HAD TO REMOVE TWO TAXIWAYS AND CREASE THE FENCES. I MEAN, THE COST IS ASTRONOMICAL. AND THIS AIRPORT WAS REALLY IN PRETTY DARN GOOD SHAPE, AMAZINGLY GOOD SHAPE. SO THOSE WERE ALL OF THE ISSUES THAT WERE BROUGHT UP. AND WE'LL GET A LITTLE DEEPER INTO THAT HERE IN A MINUTE. AND WE SAID AND WE BROKE DOWN THE PRICE, BUT BECAUSE I DIDN'T WANT TO PUT THIS ON A SLIDE, I'M GOING TO GIVE THIS TO EACH OF YOU. [01:50:10] THIS IS A THIS IS THAT SLIDE ON THE FRONT. AND THEN BEHIND IT IS A BREAKDOWN AND AND WHAT NEEDS TO BE DONE IN THAT AREA SO THAT THIS. THE MOST IMPORTANT PART OF THE REPORT. YOU YOU DON'T NEED ALL THE OTHER STUFF IN THE FRONT, BUT THIS IS THE STUFF YOU NEED TO LOOK AT. SO I'LL PASS THAT AROUND TO EACH ONE OF YOU. ONE OF YOU TAKE THOSE AND PASS THAT WAY. THANK YOU. AS YOU CAN SEE, THE BOTTOM LINE IS SOME PEOPLE LOOKS A LITTLE HEFTY. 6,000,003 28750. THAT TRULY IS IS NOT THAT IS CONSIDERABLY LESS THAN MOST AIRPORTS THAT I HAVE TO GO INTO. I MEAN, YOU'VE GOT A REALLY, REALLY GOOD AIRPORT, I'LL TELL YOU THAT. YOU BOUGHT SOMETHING AND BECAME A SPONSOR OF A SUPER FACILITY. YOU GOT LONG RUNWAYS, YOU GOT RUNWAYS. YOU CAN HANDLE A TON OF WEIGHT AND YOU'VE GOT LAMPS. YOU HAVE IT ALL. THERE'S JUST A FEW LITTLE THINGS THAT NEED TO BE DONE. PUT THIS THING INTO SHAPE. AND THE MOST TIME CONSUMING THING, OF COURSE, IS TO FIND THE MONEY, TO MAKE SURE YOU GET THESE THINGS DONE AS QUICKLY AS POSSIBLE. AND AS FAR AS MANUALLY, THAT AIRPORT CERTIFICATION MANUAL AT THE VERY END THAT HAS TO BE CREATED, THAT'S A BEAR TO BE CREATED. AND I'LL TELL YOU WHAT'S IN THAT LITTLE SUCKER HERE. THE MANUAL. WE HAVE TO COME UP AND DO AN AIRPORT EMERGENCY PLAN, A SIGN MARKING PLAN, WILDLIFE HAZARD PLAN, A RUNWAY INCURSION STUDY. AND SO THEN AT THAT POINT, THEN I CAN DO THE APPLICATION FOR THE 139, AND WE HAVE TO SUBMIT WITH THAT MANUAL THEN A PERSONAL TRAINING RECORDS. AND THEN FINALLY WE GET A LETTER OF INTENT, HOPEFULLY FROM SOME AIRLINE THAT HAS AN INTEREST TO SERVE THIS IN SOME WAY. AND THIS IS ALL WELL AND GOOD, BUT THAT LITTLE DEVIL IS A REAL KICKER TO PRODUCE AND IT REQUIRES A LOT OF TALENT. SOME YOU ALREADY HAVE UNDER CONTRACT NOW AND SOME YOU DO NOT. BUT THESE ARE PEOPLE THAT WILL BE WRITING OR SOMEBODY HAS TO WRITE ALL THESE PLANS AND UPDATES AND DO THE RESEARCH FOR THEM. AND SO THAT'S A VERY TIME SENSITIVE AND IT TAKES A WHILE TO DO IT. THEN SOMEBODY PUTS IT ALL TOGETHER, THEN WE RESUBMIT IT. WE SUBMIT THE MANUAL, THE APPLICATION BACK TO THE REGION. I GET THEIR APPROVAL ON THAT AND THEN THEY COME BACK FOR A FINAL INSPECTION. BUT WE CAN'T WHILE WE ARE DOING THE MANUAL THING SIMULTANEOUSLY WITH THE IMPROVEMENTS TO THE AIRPORT, WE DON'T HAVE TO DO THEM SEPARATELY. IT STILL TAKES A WHILE TO ROLL THIS THROUGH. AND NORMALLY I WOULD SAY SINCE WE DON'T HAVE TO DO ANY BIG HEAVY RUNWAY OR TAXIWAY WORK, IF WE COULD WRITE A CHECK TODAY, WE COULD PROBABLY GET ALL THIS THROUGH IN A PROBABLY A YEAR AND A HALF. BUT WE KNOW WE'VE GOT TO FIND THE MONEY FOR THIS. AND THIS IS AN INTERESTING STATE WHEN IT COMES TO GETTING MONEY. SO MIKE'S GOING TO COME UP HERE AND WE'RE GOING TO TALK A LITTLE BIT ABOUT THESE DIFFERENT TYPES OF FUNDS. IN THE END, IT'S ALL ABOUT TIME, HOW QUICKLY YOU WANT TO DO IT, HOW FAST WE CAN FIND THE FUNDING AND IN SOME CASES SOME INCENTIVES. SO WE GET FUNDING. THERE'S ALSO THE SITUATION WHERE IF WE DO GET SOME INCENTIVES, MEANING THIS RATHER THAN THE 9010 THAT THE FEDS NORMALLY GIVE OUT OR CERTAINLY LANDSIDE AIRSIDE. AIRSIDE PROJECTS, WELL, MAYBE WE FIND ANOTHER TEN, 15, 20% THAT IS GIVEN BY CITY, COUNTY, STATE OR WHOEVER AT THE BOTTOM WILL KICK IT OUT AND WE CAN FIND A WAY PERHAPS TO GET IT REIMBURSED. SO I THINK MIKE CAN SPEAK MORE TO WHAT WE HAVE ALREADY AND WHAT HE HAS GOING AS I DON'T KNOW, ALL THE GRANTS THAT ARE OUT THERE. BUT YOU WORK IN THIS CASE, NOT ONLY THROUGH THE FEDS, BUT YOU ALSO ARE WORKING WITH A BLOCK GRANT STATE. THIS IS NOT ONE OF MY FAVORITE THINGS THAT THEY DID IN THIS TEXAS WITH AVIATION, THAT ALL MONEY FROM THE FEDERAL GOVERNMENT GOES STRAIGHT TO TECH STOCKS AND IT'S TECH STOCK [01:55:03] THAT DISTRIBUTES THESE THEN TO ABOUT 246 GENERAL AVIATION AIRPORTS IN THE STATE OF TEXAS. AND THAT IS USUALLY WHERE WE GET NAILED DOWN IS THAT TECH DOT. AND IT TAKES A LOT OF WORKING WITH THEM TO GET THEM TO RELEASE FUNDS. FOR THESE AIRPORTS. AND THAT'S JUST THE WAY THAT AGENCY IS. RIGHT. YOU WANT TO STAY A LITTLE BIT ABOUT THIS? YEAH, ON THE 6.9 MILLION, THAT IS THE PART THAT WE HAVEN'T IDENTIFIED THAT NEEDS TO BE FUNDED ALTOGETHER TO DO EVERYTHING THAT'S TAXIWAY ECHO RELOCATION AND IT'S ABOUT 13 MILLION. WE'VE GOT ALMOST 6 MILLION ALREADY IDENTIFIED AND FUNDED. FOR EXAMPLE, THE TAXIWAY ECHO RELOCATION, THAT'S A TOTAL PROJECT IS ABOUT 3.8 MILLION. SO WE'VE GOT 2 MILLION OF THAT IDENTIFIED THE RUNWAY SAFETY AREA THAT'S ALREADY UNDER ENGINEERING AND DESIGN. WE'VE GOT 900 OR 775,000 TOTAL FOR CONSTRUCTION. BUT WE'VE JUST RECEIVED THE PRELIMINARY REPORT AND IT'S STILL PRELIMINARY, BUT THE THE CONSTRUCTION COSTS ARE GOING TO INCREASE IN THAT. SO WE'LL HAVE TO TRY TO FIND FUNDING FOR THAT AS WELL. THE SIGNAGE AND LIGHTING WASN'T VERY MUCH. IT'S 27,000 AND WE'RE ALREADY TAKING CARE OF SOME OF THAT THIS YEAR. AND THEN NEXT BUDGET YEAR WE'RE GOING TO FINISH IT OFF PILOT CONTROLLED LIGHTING. WE'VE GOT A GRANT TO TAKE CARE OF THAT 100% COST. AND THEN DRAINAGE IMPROVEMENTS THAT WE'RE DOING IS PAID FOR. THAT'S PART OF THAT 5.8 WE'VE GOT AND THEN SOME RAMP AREA TO SUPPORT HEAVIER AIRCRAFT AND WE'VE GOT THAT IN THE PROJECT. YES, SIR. YEAH. LET ME FIRST SAY WE'RE BUILDING A SOCCER FIELD COST MORE THAN $6 MILLION. SO, SO, SO THAT WAS PRETTY GOOD THEN, DOESN'T IT? THAT'S NOT THAT'S NOT THAT'S NOT A STUNNING FIGURE. HOWEVER, REPAINT AND ENHANCE $1.7 MILLION, THAT THAT SEEMS A LITTLE HIGH, BUT IT'S AIRFIELD MARKING AND IT'S EVERYTHING OUT ON THE AIRFIELD. IT'S TWO RUNWAYS. IT'S FIVE TAXIWAYS. IT'S THERE'S A LOT TO IT. IT'S REFLECTIVE PAINT. IT'S A HEAVIER DUTY. SO IT STANDS UP. IT DOES SEEM HIGH. AND IT'S MY UNDERSTANDING THAT WHEN THEY CALCULATED THESE COSTS, THEY WENT ON A LITTLE BIT OF THE HIGH SIDE BECAUSE KNOWING IT'S GOING TO TAKE A WHILE TO GET SOME OF THIS DONE. SO WE NOW KNOW WHAT IT'S GOING TO CAUSE. WE'RE TRYING TO IDENTIFY A PARTNER RIGHT NOW THAT WE CAN PARTNER WITH TO HELP COVER THAT COST WITH US TO FIND PARTNER, POSSIBLY A PUBLIC PRIVATE PARTNERSHIP. YEAH. AND ALSO AIRLINES AND CRUISE LINES TO WORK THAT TERMINAL. TERMINAL OPERATOR. YEAH. AGAIN, WITH THE GRANTS AND SO FORTH, IT COULD BE REIMBURSABLE AGREEMENTS WITH FAA AND TAKES OUT THAT WE PUT THE MONEY UP FRONT AND THEN THEY REIMBURSE US AS THEY GET THE MONEY AND SO FORTH. SO WE'RE EXPLORING DIFFERENT ROUTES ON HOW TO TAKE CARE OF THIS AND ALSO TO WORK WITH SOMEBODY THAT CAN ACTUALLY HELP US ATTRACT AN AIRLINE AND ACTUALLY OPERATE THE COMMERCIAL SERVICE TERMINAL AND SO FORTH. SO HOPEFULLY SOMETHING WILL WE CAN COME BACK TO COUNCIL SOMETIME, YOU KNOW, IN THE NEXT SIX MONTHS OR SO WITH SOMETHING. JOHN IN ONE OF YOUR SLIDES, TWO SLIDES AGO, MAYBE YOU COULD WRITE HERE THE LETTER OF INTENT OF COMMITMENT. DO YOU HAVE TO HAVE THAT TO GET THEM TO DO THE ONE? BUT IF YOU HAVE SOMETHING GOING ON, THEN NO, THAT IS NOT THAT DOES NOT HAVE TO BE IN PLACE TO FILE THAT APPLICATION. BUT IF YOU'VE GOT SOMEBODY WAITING IN THE WINGS AND HAS AN INTEREST, THAT JUST MAKES IT. ALSO THE OTHER THINGS THE GUYS TOLD ME, I'M IN THE FAA OFFICE EVERY MONTH. I'M ALSO IN THE PROCESS OF SELLING A PRIVATE AIRPORT TO A PUBLIC AGENCY, AND THERE'S ONLY ABOUT 6 OR 7 OF THOSE IN THE NATION THAT'S EVER BEEN DONE. SO I SPENT A LOT OF TIME WITH FAA AND WE FIGURE OUT HOW WE'RE GOING TO SKIN THIS CAT. AND THEY, THE PLANNERS OF THE DAY, SAID, BEST OF WHEN WHEN YOU WRITE THAT MANUAL, MAKE SURE AND PUT IN THERE HOW THEY'RE GOING TO GET THE PASSENGERS THAT ARE COMING INTO THAT AIRPORT, TO THOSE CRUISE DOCKS, TO THOSE CRUISE SHIPS, YOU'VE GOT TO SHOW US THAT THAT YOU CAN GET THEM THERE. YOU CAN'T JUST STAND, YOU KNOW, SIT THEM THERE AND HOPE IT DOESN'T SOLVE THE PROBLEM ONLY HALFWAY TO THE DESTINATION. YEAH. YOU DON'T SOLVE THE PROBLEM. AND I SAID, WELL, YOU KNOW, 20 YEARS AGO I WORKED WITH HOWARD NEEDLES ON YOUR TROLLEY PROGRAM. CAN WE REINVENT THE CRAWLEY AGAIN OUT THERE OR PUT IT OUT THERE? BUT YEAH, SO THE GUYS IN FORT WORTH IS A REGION. THEY'RE ALWAYS GIVING ME SUGGESTIONS ON THINGS I OUGHT TO SEE THAT ARE IN THE MANUAL. I WON'T BE WRITING THE MANUAL. ALL THESE PROFESSIONALS, ENGINEERS, PLANNERS, ETCETERA WILL BE WRITING THEIR PART OF THE MANUAL. [02:00:05] BUT IN THE END, HOPEFULLY IF MIKE STILL WANTS ME AROUND, I'LL PUT THE FINAL THING TOGETHER, YOU KNOW, AND GET IT LIKE THE FAA WANTS IT. SO EVERY TIME I'M IN THE FAA OR WHEN I'M AT TEXDOT, I'LL SAY SOMETHING ABOUT, WELL, YOU KNOW, THIS IS WHERE WE ARE IN GALVESTON. AND AND THEY'LL SAY, WELL, MAKE SURE THIS IS IN THAT. ANNUAL. SO I'VE GOT A I'VE GOT A GOOD SUPPORT SYSTEM BEHIND ME FOR ONCE THAT USUALLY I'M FIGHTING WITH THE FAA FOR MONEY AND OR GOING TO WASHINGTON AND GET MONEY EARMARKED. NOW, IF MONEY GETS EARMARKED FROM THE FAA, THEN TEXTILE HAS TO USE THAT MONEY ON THIS AIRPORT. THAT DOESN'T MEAN THEY CAN'T SIT AROUND AND SIT ON IT FOR A WHILE. SO WE HAVE GOT TO GET TEXTILE TO BE OUR VERY BEST FRIENDS. AND THAT'S GOING TO BE A LOT EASIER BECAUSE NOW THEY'RE GETTING READY TO TAKE UP ONE OF THE DEPARTMENTS THAT WOULD GIVE US THE MOST PROBLEMS, AND THEY'RE GOING TO BE A NEW DIRECTOR TO THAT. AND HOPEFULLY IT'LL BE SOMEBODY THAT WE ALL WE'VE GOT SOME QUESTIONS. GOT DAVID DAVID FINCKEL AND THEN MARIE, WHERE ARE WE ON CPB? CUSTOMS AND BORDER PROTECTION. YEAH, CUSTOMS AND BORDER PROTECTION. THAT'S WHAT I MAKING ANY PROGRESS YET? I'M NOT SURE. WE WERE TOLD AT ONE TIME ONCE THE NEW CRUISE PORT WAS BUILT, THAT IT WOULD CONVERT TO A STAND ALONE ENTITY HERE ON THE ISLAND. THAT MAY WELL BE. I HAVEN'T BEEN ABLE TO. OKAY. I PUT THE CUSTOMS IN AT CONROE AND CHANGED THE NAME OF THE AIRPORT TO, SAY, CONROE, NORTH HOUSTON REGIONAL AIRPORT. WE PUT THAT IN FOUR YEARS AGO AND I FINISHED ONE DOWN IN WESLACO AND I OVERSIGHTED THE NEW CUSTOMS FACILITY IN ALLEN AND ARLINGTON. I CAN TELL YOU THOSE THINGS ARE RIGHT OUT OF YOUR POCKET. IF YOU PUT AN OFFICE OUT THERE, I CAN GET THE LETTER FROM WASHINGTON, FROM THE COMMISSIONER THAT SAYS WE WILL MANAGE YOUR FEES, BUT YOU'RE GOING TO BUILD IT OUT OF YOUR POCKET. YOU'RE NOT GETTING ANY FEDERAL FUNDS. I THINK I THINK WE GET THAT. I MEAN, WE'RE HAVING THIS CONVERSATION EVEN TODAY WITH THE PORT ABOUT EXPANDING CPB FACILITIES HERE. BUT ISN'T THAT PRESENCE AT THE AIRPORT KEY TO A LOT OF YOUR EXPANSION PLANS? IT'S A DESIRE, AND IT CERTAINLY WILL BRING REVENUE INTO THE AIRPORT AND IT OPENS UP A WHOLE OTHER MARKETS, RIGHT? WE CAN PULL QUITE A BIT. THERE'S AT LEAST THE LAST TIME WE LOOKED AT IT, THERE WAS OVER A THOUSAND AIRCRAFT FLYING OVER THE TOP OF SLAMMING AT HOBBY CLEARING AND THEN LEAVING. RIGHT. SO EVEN IF WE GOT 10%, THAT'S NOT BAD, YOU KNOW, BUT I'M ALL FOR GETTING CUSTOMS AT THE AIRPORT. BUT I DON'T THINK IT HELPS IN THIS SITUATION BECAUSE I DON'T THINK WE'RE GOING TO BE BRINGING COMMERCIAL AIRLINES INTO GALVESTON FROM OVERSEAS. IT'S GOING TO HELP US DO PRIVATE FLIGHTS IN HERE, CLEAR CUSTOMS, SELL FUEL, THINGS LIKE THAT. BUT ON THE CRUISE, NOT NECESSARILY TRUE BECAUSE WE'VE HAD WE'VE HAD CALLS TO THE AIRPORT FROM MEXICAN AIRLINES THAT WANT TO COME IN BECAUSE OF THE YOU COULD. BUT EVEN EVEN THOSE LARGER I MEAN, I DON'T THINK WE'RE GOING TO GET A REGULAR LIKE 737IN HERE. WELL, FOR EXAMPLE, CONROE, AT LEAST LAST YEAR, THEY WERE STILL LOSING MONEY. IT'S MORE ON THE COSTING THEM MORE TO KEEP IT OPEN THAN WITH THE EXPANSION, BUT IT'S JUST AN ADDED ATTRACTION, SO TO SPEAK. YEAH, AND WE WILL ALWAYS THEY WILL ALWAYS CLEAR PRIMARILY IN THE HOUSTON CLEARING AND HOBBY AREA, CONTINENTAL, I ENVISION THIS AS BEING SOME KIND OF COMMUTER SERVICE THAT IS COMING OUT OF EITHER CONTINENTAL HOBBY OR H THAT CAN BRING PEOPLE DOWN HERE THAT ARE PROBABLY ALREADY CLEARED CUSTOMS, IF THEY'RE COMING IN FROM MEXICO OR CANADA OR WHEREVER, THAT CAN FLY THEM DOWN HERE AND THEN HAVE THE SERVICE THAT CAN BRING THEM ONTO THE DOCKS, ONTO THE CRUISE SHIPS. BUT THE CRUISE, PRIMARILY THE CRUISE AND OVER 35% OF YOUR VISITORS, I BELIEVE, I THINK COME FROM. YES, OUTSIDE THE STATE OF TEXAS, A BIG PERCENTAGE TO CRUISE THAT. WE'RE A BIG AND THAT'S EVERY DAY INCREASING BECAUSE YOU'RE GETTING SO MUCH MORE VISIBILITY IN THE MARKETPLACE ON WHAT YOU'VE GOT DOWN HERE NOW. SO YOU'RE GOING TO SEE A VERY MUCH HIGHER END CRUISER COME DOWN HERE THAT WANTS IT EASY TO GET IN HERE AND THEY DON'T HAVE TO RIDE A BUS OR SOMETHING. AND YOU WILL SEE YOU WILL SEE THIS EXPAND. UNBELIEVABLY, I WROTE FOR THREE YEARS, I WROTE ALL THE SPEECHES FOR THE PORT OF HOUSTON AND WORKED FOR TOM CARNEGIE, THE EXECUTIVE DIRECTOR. [02:05:04] AND HE ALWAYS WANTED ME TO PUT IN THE SPEECHES AS HE WAS. HE WAS PRESIDENT OF THE INTERNATIONAL PORTS ASSOCIATION. HE SAYS, PUT IN THERE SOMETHING ABOUT THIS GREAT CRUISE TERMINAL WE HAVE AND WHAT WE'RE GOING TO DO HERE. AND I SAID, WHAT ARE YOU GOING TO DO HERE? AND EVERY TIME BEFORE YOU GAVE THE SPEECH, I'D MARK OUT THAT PART BECAUSE HOUSTON WAS. WILL NEVER BE WHAT YOU ARE TODAY OR EVEN A PART OF WHAT YOU WILL BE TODAY. YOU HAVE CAUGHT THE MARKET AND THE CRUISE SHIPS KNOW IT. WE'VE GOT A LOT OF QUESTIONS. LET'S KIND OF BRING THIS BACK TO JUST GO TO A. JUST ONE QUESTION. JUST ONE THOUGHT. JUST KEEP IT KIND OF TO THIS 139 CERTIFICATION. GO RIGHT AHEAD. THIS IS IN LINE WITH CUSTOMS. I KNOW. I USED ON CUSTOMS. I USED TO FLY IN AND OUT OF BROWNSVILLE A LOT AND THEY HAD CUSTOMS. BUT IT WAS ONLY WHEN THE FLIGHT WAS TAKING OFF, THEY HAD GATES AT THEIR GATE. AND THEN WHEN THE FLIGHT AN HOUR BEFORE, THEY'D OPEN IT UP. AND I DON'T KNOW WHETHER THEY SHARED WITH BORDER PATROL OR WHAT, BUT COULDN'T SOMETHING SIMILAR BE DONE WITH THE CRUISE LINE? WE'VE GOT CUSTOMS OUT, RIGHT? THAT'S WHAT I MEAN. I'VE AT ONE TIME I WAS BROUGHT IN HERE, I CAME HERE 20 YEARS AGO TO DO A MARKETING PLAN FOR THIS AIRPORT. I CAN HONESTLY SAY IT WASN'T RECEIVED WELL AT 20 YEARS AGO, BUT AT THAT TIME ALSO, I WAS THINKING ABOUT THE SAME THING AND I MADE SOME CALLS TO MY FRIENDS IN CUSTOMS AND THEY SAID, WELL, YOU KNOW, THEY'RE NOT REALLY EXCITED ABOUT DOING THAT, THE PEOPLE THAT ARE HERE. BUT THAT'S BEEN A LONG TIME AGO. I'VE NOT NOW WORKED MY NETWORK CURRENTLY TO SEE NOW THAT YOUR SITUATION HAS CHANGED, WE'RE GOING TO MAKE OUR SITUATION CHANGE AT THE AIRPORT. SO LET'S FIGURE OUT A WAY TO MAKE IT'S CALLED ON CALL CUSTOMS AND THAT'S WHEN THE AIRLINES CALL IN AND GIVE THE TIME OF ARRIVAL. AND THEN THE CUSTOMS OFFICIALS ARE SENT OUT, WAIT FOR THE PLANE CLEAR, AND THEN THEY GO BACK. THAT'S EXACTLY THE WAY I HAD IT DOWN IN WESLACO, THE SAME WAY IT WAS A BORDER CROSSING DOWN THERE AT A BRIDGE. AND THEY WOULD THEY HAD ENOUGH CUSTOMS THAT THEY'D BRING IT THREE MILES OVER TO THE AIRPORT TO CLEAR AT THIS LITTLE BITTY AIRPORT THAT I PUT A $3.4 MILLION BRAND NEW FACILITY IN AND WORKED LIKE A CHARM. ALL RIGHT. SO I AGREE. WE'VE GOT A FEW MORE QUESTIONS HERE, DAVID. I'VE GOT TWO QUESTIONS AS IT RELATES TO THE AIRPORT CERTIFICATE OR CERTIFICATION. YES. THAT ONE, THE MANUAL ITSELF, YOU MADE MENTION OF THE FACT THAT THE FAA ASKED THE QUESTION ABOUT HOW TO GET PASSENGERS TO THE CRUISE TERMINAL. DOES THAT QUESTION HAVE TO BE ANSWERED AS A PART OF THE AIRPORT CERTIFICATION? MANUAL PLANNERS WERE SUGGESTING THAT I PUT SOMETHING IN. IF THEY WERE ASSUMING I'D BE WRITING PART OF IT, THAT MAKE SURE AND HAVE IN THERE HOW YOU'RE GOING TO MOVE THEM. SO THIS WAS SOMETHING THEY WERE ASKING ME. OKAY. I DON'T CURRENTLY SEE THAT IN YOUR IN YOUR OUTLINE OR A TRAFFIC STUDY THAT WOULD SUPPORT THAT. SO THAT'S MY FIRST QUESTION. MY SECOND QUESTION IS, AS A PART OF THAT, YOU'VE GOT TO UNDERSTAND WHAT YOUR TRAFFIC GENERATION IS. AND SO IS THERE ANY FEES IN HERE TO COVER AN AIR SERVICES STUDY OR YOU KNOW, DEMAND ANALYSIS TO DETERMINE HOW MANY PLANES WERE ANTICIPATING BRINGING IN, GENERATING HOW MANY PASSENGERS, AND WHAT THAT IMPACT IS ON OUR INFRASTRUCTURE NETWORK? THAT REQUIRES TO ANSWER THAT ONE. OKAY. YEAH. YEAH. IS THAT REQUIRED AS A PART OF THIS APPLICATION? NO, IT'S NOT. WE ARE WORKING WITH A COMPANY THAT THEY APPROACHED US ABOUT THE SAME TIME THAT THE CRUISE COMPANY APPROACHED MAYOR BROWN, THAT THEY SAID THEY CAN BRING IN THE AIRLINES AND THE WHOLE THE WHOLE WORK. SO WE'RE STILL WORKING WITH THAT PARTICULAR COMPANY. SO THAT WOULD BYPASS THEIR SERVICE STUDY TYPICALLY BECAUSE JUST A CLARIFICATION THAT I WANT TO MAKE SURE THAT IF THE FAA IS ASKING FOR THAT AS PART OF THE APPLICATION, I DON'T SEE THEM EVERY TIME. THEY ALWAYS ASK ME WHERE I'M IN ON THIS OR WHERE WE ARE ON THIS, AND THEY'LL ALWAYS BE GIVING ME SUGGESTIONS AND WE WOULD WEAVE THEM IN THE REPORT. BUT AS FAR AS AN AIR SERVICE STUDY, THAT'S ASIDE FROM THIS. ALL RIGHT. THAT'S. THANK YOU. THAT'S KIND OF BORING. YES. JOHN. SO SO WHERE DO WE GO FROM HERE? HOW DO WE MOVE FORWARD ON THIS? WELL, THAT'S A GOOD QUESTION. WELL, LET ME LET ME KIND OF CHIME IN ON THAT, IF I COULD, AND BRING THIS BACK TO KIND OF THE CERTIFICATION OF 139. WE CAN'T MOVE FORWARD WITH OUR MASTER PLAN FOR THE AIRPORT UNTIL WE MOVE FORWARD WITH THE CERTIFICATION 139, IS THAT RIGHT NOW WE'RE ALREADY DOING WHAT'S IN THE MASTER PLAN. WE'RE FOLLOWING THE MASTER PLAN. IT'S BEEN ADOPTED AND SO FORTH. SO NO, NO, BUT I MEAN, IT'S MOVING TO THE PASSENGER TERMINAL AND ALL THE OTHER THINGS. [02:10:04] MY RECOMMENDATION IS THAT DEPENDING IF YOU WANT US TO CONTINUE TO PURSUE IT, WE'LL TRY TO WORK OUT AGREEMENTS WITH AN OUTSIDE SOURCE OR IDENTIFY THE FUNDING SOMEWHERE TO MAKE ALL THE IMPROVEMENTS. THEN WE'LL NEED TO WORK UP SOME CONTRACTS FOR COUNCIL TO APPROVE AND SO FORTH. WE NEED, YOU KNOW, THE FAA'S HELP. THE TEXANS HELP ON THAT. AND THEN ONCE WE GET THOSE IN PLACE AND THEN WE CAN START WORKING ON THE MANUAL BECAUSE WE KNOW ONCE WE HAVE IDENTIFIED WHEN WE'RE GOING TO FINISH UP ALL THE IMPROVEMENTS THAT WE NEED TO HAVE THAT MANUAL DONE BEFORE EVERYTHING'S DONE. SO WE'RE READY TO GO. OKAY. SORRY TO JUMP IN, JOHN, BUT GO RIGHT AHEAD. NO, I MEAN I MEAN, I'M JUST I THINK THIS IS A GREAT PLAN, GREAT PRESENTATION. UM, JUST. I'D LIKE TO SEE US MOVE FORWARD WITH THIS. YES. UM, YOU KNOW, I GUESS THE FIRST THING HERE IS TO IDENTIFY FUNDING SOURCES FOR THIS. YOU KNOW, WE'VE DONE YOU'VE DONE A GREAT JOB IN THE PAST OF GETTING US MONEY FROM TEXDOT AND FAA. I MEAN, WE'RE, YOU KNOW, WE'VE GOTTEN, WHAT, 12, 11, $12 MILLION THIS PAST ROUND ABOUT THAT TOTAL. UM, AND SO ANOTHER SIX SEEMS EASY, PRETTY EASY TO DO. I MEAN, WE'RE TRYING TO COMPRESS IT A LITTLE BIT, SO THAT'S WHY THAT'LL BE A LITTLE BIT MORE OF A CHALLENGE. IT'S TAKEN US ABOUT 12 MILLION. IT'S TAKEN US SINCE 2016 TO GET THERE. SO IT'S BEEN A WHILE. IT'S TAKEN US AT LEAST, YOU KNOW, EIGHT YEARS OR SO. SO WE'RE TRYING TO SQUEEZE A LITTLE BIT MORE. HOPEFULLY WE CAN GET YOU 3 MILLION OR SO FROM THE SALE OF SOME PROPERTY AND THAT WILL GET YOU A LITTLE WAYS, WHICH WE COULD USE IT. THAT'S NOT REVENUE PRODUCING. WE WE CANNOT USE THAT FOR CAPITAL IMPROVEMENTS. CAN'T USE THAT FOR ANY CAPITAL IMPROVEMENTS. WE CAN USE IT FOR BUILDING HANGARS OR SOMETHING THAT'S GOING TO PRODUCE REVENUE FOR US. RUNWAY PROJECTS, STUFF LIKE THAT. PARTNERSHIP, YOU COULD USE IT, RIGHT? I'M SORRY IF YOU LIKE. WE DID A PARTNERSHIP WITH THE TERMINAL MANAGER. THEN YOU COULD USE IT. IT'S GOING TO BE REVENUE GENERATING. WELL, IF WE CAN GET THE FAA TO APPROVE IT, WHERE IS THIS? MIGHT BE A LITTLE OFF THE SUBJECT, BUT WHERE IS IT REQUIRED THAT YOU USE IT FOR REVENUE GENERATING PROJECTS? IN THAT RELEASE? IN THE FAA RELEASE, THE FAA HAS IT HAS TO BE THAT 1.6 MILLION. IF YOU LOOK AT IT, IT SAYS MINIMUM 1.6 FOR AIRPORT REVENUE GENERATION. THAT'S THAT'S WE'RE GOING TO WIN THIS DISCUSSION UP. LET'S GO RIGHT AHEAD. I HAVE ONE MORE COMMENT. MY QUESTION GOT ANSWERED BY BRAVO TO THE BOARD AND BRINGING IN THIS CRUISE BUSINESS THAT HAS GOTTEN US TO HERE, WHICH IT'S ALWAYS BEEN MY DREAM TO HAVE COMMERCIAL AIRLINES GOING IN AND OUT THE PORT. THIS HAS BEEN QUITE A IMPETUS TO HELP MOVE THIS ALONG. AND THE SUCCESS OF THE PORT HAS HAS HAD IT TO THAT. KEEP US UPDATED, MIKE, IF YOU WOULD. I KNOW YOU'LL NEED TO COME BACK FOR COUNCIL FOR CERTAIN APPROVALS OF THINGS. SO WE'RE OPEN TO DO THAT. AS YOU CAN TELL, WE'RE VERY SUPPORTIVE OF EVERYTHING YOU'RE DOING THERE. AND I LOVE YOUR COMMENTS ABOUT THIS. THIS AIRPORT IS IN SUCH GOOD SHAPE. IT'S SUCH A GREAT DEAL. CONGRATULATIONS TO YOU ABOUT AROUND THE UNITED STATES. WOW, THAT IS WONDERFUL. WE'RE ALWAYS SAYING WHAT IS HAPPENING DOWN THERE. AND I SAID, YOU'RE NOT GOING TO BELIEVE IT UNLESS YOU SAW IT. THAT IS SO GREAT. I THINK IT'S A GREAT CITY COUNCIL. YEAH. GLAD TO HAVE YOU. WHERE ARE YOU FROM? I WAS RAISED IN ABILENE. OKAY. AND I'VE BEEN IN HOUSTON SINCE 79. I WAS BROUGHT IN BY GEORGE MITCHELL. OKAY. AND JOHN TURNER AND JUDGE LINDSAY TO BE THE LOBBYISTS ON THE TOLLWAY SYSTEM THAT YOU HAVE AROUND THAT WE HAVE AROUND THE CITY. AND TODAY I WORK WITH ALL THOSE ENGINEERS, PLANNERS AND ET CETERA THAT BUILD AIRPORTS, SEAPORTS, TRANSIT AND HIGHWAYS, A LOT OF PUBLIC OUTREACH AND AND OBVIOUSLY WORK WITH A LOT OF GOVERNMENT AGENCIES AND AND KNOW A FEW PEOPLE AFTER ALL THESE YEARS. WELL THANK YOU FOR TURNING OVER THE ROCK. THANK YOU FOR SHARING YOUR EXPERTISE WITH US A LITTLE BIT. SO WE ARE A VERY STRANGE NICHE IN THE AVIATION INDUSTRY. THANK YOU. THANK YOU FOR BEING HERE. APPRECIATE IT. YEAH. AND CAN WE GET A ELECTRONIC COPY OF THE PRESENTATION OR THE REPORT AS WELL? SURE. SEND IT TO AN ELECTRONIC COPY OF THE FINAL COPY. YOU GOT IT, JANELLE. OKAY, THANK YOU. I'LL SEND IT OUT. GOT DRIVE. ALL RIGHT. OKAY. WELL, YOU DON'T HAVE THIS. YOU DON'T HAVE THIS REPORT. THIS IS WHAT HE'S WANTING. OKAY? YEAH. SO WHAT I WILL DO IS I DON'T. YEAH, HE'S GOT THE WHOLE REPORT ON A THUMB DRIVE. THE CITY COUNCIL WANTS A COPY OF THE REPORT. PLEASE. THANK YOU VERY MUCH. APPRECIATE IT. THANKS. MY PLEASURE. AND I HOPE TO SEE YOU AGAIN, BUT PERHAPS NOT IN ANOTHER 20 YEARS. YEAH. I DON'T KNOW HOW MUCH LONGER I'LL BE AROUND IN ANOTHER 50 YEARS. [02:15:03] OH, THANK YOU VERY MUCH. THANK YOU. THANK YOU SO MUCH. CORPORATE PILOT BY THE AGE OF 19. LET'S MOVE TO ITEM THREE, PLEASE. [3.E. Consider For Discussion The Status Of The Issuance Of First Lien Revenue Bonds For The Finance Of Improvement To Cruise Terminal 25 And Associated Documents From The Port Related To Such Issuance And Reimbursement Of Project Costs Incurred To Date (Brown - 20 Min)] JANELLE THREE CONSIDER FOR DISCUSSION THE STATUS OF THE ISSUANCE OF FIRST LIEN REVENUE BONDS FOR THE FINANCE OF IMPROVEMENT TO CRUISE TERMINAL 25 AND ASSOCIATED DOCUMENT DOCUMENTS FROM THE PORT. RELATED TO SUCH ISSUANCE AND REIMBURSEMENT OF PROJECT COSTS INCURRED TO DATE. VERY GOOD. WE HAVE MEMBERS FROM THE PORT HERE. I INVITE YOU TO COME UP TO THE TABLE, IF YOU WOULD. WE'VE GOT ROGER REES, TONY. MARK MURCHISON. MARK, YOUR YOU'D LIKE TO COME TO THE TABLE. WE NEED TO GET ANOTHER CHAIR. IF WE COULD. PLEASE. COME ON UP, GENTLEMEN. ROGER, COME ON OVER HERE AND HAVE A SEAT. TONY HAVE A SEAT OVER HERE. MARK WILL GET YOU A CHAIR HERE AND OKAY. SURE. IS THAT RIGHT? YEAH, THAT'S FINE. HAVE A SEAT. ROGER. I WILL SAY OUR FINANCIAL MANAGER HERE, IF WE NEED IT. WHO IS OUR FINANCIAL. OH, OKAY. SOUNDS GOOD. I WANT TO THANK YOU FOR YOUR PATIENCE TODAY. I KNOW YOU'VE BEEN WAITING, AND WE'RE ANXIOUS TO HEAR KIND OF ABOUT WHAT YOU HAVE TO PRESENT. WE DID SEND YOUR PRESENTATION OUT TO COUNCIL ABOUT A WEEK AGO ON WHERE YOU STAND WITH THE FIGURES AND STATISTICS ON THIS. IT IS COUNCIL. THIS IS ON OUR AUGUST 24TH AGENDA THAT WILL BE FOR ACTION OF COUNCIL AT THAT POINT. THIS IS JUST A WORKSHOP TODAY. HOW DID WE WANT TO START, ROGER, YOU WANT TO START? WELL, I MEAN, I GUESS I'M MAYBE A LITTLE CONFUSED HERE. I THOUGHT WE WERE TALKING ABOUT WE'VE ALREADY MADE A PRESENTATION TO THE BOARD, RIGHT? CORRECT. AND AND I GUESS I THOUGHT WE WERE HERE TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE ABOUT THE DOCUMENT. SO IF THE PRESENTATION YOU WANT ME TO MAKE, I DON'T KNOW IF THERE'S A SPECIAL PRESENTATION OR OR SOMETHING YOU WANT ME TO SAY. I MEAN, THAT'S A VERY GOOD POINT. WE SENT THE INFORMATION OUT TO COUNCIL AND WE WENT OVER THAT COUNCIL'S HAD THAT FOR A LITTLE WHILE. WHAT I WOULD LIKE TO DO TO START THIS CONVERSATION, IF YOU COULD GIVE WHOMEVER A BRIEF OVERVIEW OF WHAT YOUR REQUEST SEEING THE DETAILS OF THAT BRIEFLY AND WHAT THESE, THESE FUNDS WILL BE USED FOR. SURE, SURE. AS WE DISCUSSED LAST TIME, THIS IS THE REQUEST FOR YOUR APPROVAL ON A DEBT OFFERING FOR THE CRUISE TERMINAL 25. AND THIS IS A THIS IS EXCLUSIVELY USED BY CARNIVAL CRUISE LINES. AND WE ARE IN ALREADY INTO THE CONSTRUCTION. WE'RE ACTUALLY SPENDING MONEY OUT OF OUR OWN POCKET AT THIS STAGE. SO HERE IN IS WHY WE'RE PUTTING ALSO THE REIMBURSEMENT RESOLUTION. THE PORT HAS ALREADY PASSED A REIMBURSEMENT RESOLUTION A COUPLE OF MONTHS AGO. AND SO WE THERE'S A THERE'S AND I CAN LET TONY TALK A LITTLE BIT IF YOU WANT TO TALK ABOUT THE RESOLUTION ITSELF FOR THE REIMBURSEMENT, THE FINANCING IS PRETTY MUCH 51 MILLION WOULD BE NET TO THE PORT AND THEN THERE WILL NOT BE INCLUDING THE ONLY OTHER THING WILL BE INCLUDED IN THIS OFFERING WILL BE THE COST OF THE OFFERING. WE WILL NOT BE CAPITALIZING ANY INTEREST. WE'LL BE PAYING INTEREST AND PRINCIPAL FROM DAY ONE AND ALSO WILL BE FUNDING APPROXIMATELY A LITTLE BIT OVER $4 MILLION INTO A FUND FOR DEBT SERVICE RESERVE THAT WILL BE COMING OUT OF THE PORT'S POCKET ALSO. AND YOU KNOW, WE'RE ANTICIPATING SOMEWHERE, YOU KNOW, AROUND SEPTEMBER FOR ACTUAL ACTUAL PRICING OF THE OFFERING. THERE'S BEEN SEVERAL OTHER PORT OF HOUSTON JUST DID ONE. THE PORT OF MIAMI HAS ONE ON THE BOOKS RIGHT NOW. AND SO WE'RE PRETTY PRETTY SURE AND WE FEEL GOOD ABOUT THE MARKET ACCEPTING THIS. I MEAN, WE'RE SOME I THINK WE JUST HEARD THAT THE PORT OF HOUSTON WAS WENT FOR 4.9% INTEREST RATE AND THEY WERE ABLE TO PLACE ALL THAT THAT OFFERING. AND SO, YOU KNOW, WE'RE KIND OF WE FEEL LIKE THAT, YOU KNOW, THERE'S A LOT OF INTEREST IN THIS. AND OBVIOUSLY CARNIVAL IS YOU KNOW, RIGHT NOW JUST SAY, YOU KNOW, WE'RE AT THIS MONTH WE'RE ANTICIPATING THE NEXT TO LAST DAY OF THIS MONTH THAT WILL HIT A MILLION PASSENGERS, WHICH WE HIT A MILLION PASSENGERS IN DECEMBER LAST YEAR. SO WE BELIEVE THAT WE'RE PROBABLY LOOKING AT A MILLION AND A HALF PASSENGERS FOR THIS YEAR ALONE. SO THAT'S MONEY FOR US ALL AND AND HELPS US, YOU KNOW, REALLY SOLIDIFY THE DEBT SERVICE. SO ANY ANY PARTICULAR QUESTIONS? I MEAN, IT'S THIS IS STRICTLY FOR CRUISE TERMINAL 25. YOU KNOW, JUST A QUICK BREAKDOWN. I MEAN, WE SPENT ABOUT $10 MILLION FOR CBP FACILITIES. [02:20:04] CUSTOM. CUSTOM. YEAH, CUSTOM BORDER PATROL. AND THEN A MOST OF THE OTHER MAJOR EXPENDITURES HAVE BEEN FOR THE EMBARKATION AREA. THIS IS A PARTICULAR CONCERN FOR CARNIVAL THAT, YOU KNOW, THERE'S 2500 MORE PASSENGERS PER SHIP COMING. THROUGH THERE. AND SO THEY WANT TO MAKE SURE THAT WE CAN MOVE, BECAUSE THIS IS WHERE. THIS IS WHERE THE CRUISE LINES START TO GET PUBLIC CRITICISM. AND THEY ARE VERY CONSCIENTIOUS ABOUT THAT IS HOW QUICKLY CAN PEOPLE GET ON SHIPS AND HOW YOU CAN MOVE THEM THROUGH. SO FAR, WE I MEAN, THE ROYAL CARIBBEAN TERMINAL WAS RATED NUMBER ONE IN THE ROYAL CARIBBEAN SYSTEM THIS PAST YEAR. AND SO, YOU KNOW, WE FEEL LIKE THAT WE WANT TO CONTINUE TO HAVE GOOD CUSTOMER SERVICE. THIS BUILDING IS LONG. SO, YOU KNOW, THAT'S THAT'S PART OF THE ISSUES, TOO. AND I THINK SEVERAL OF YOU HAVE TOURED THE THE FACILITY UNDER CONSTRUCTION. AND YOU CAN SEE FIRSTHAND THAT WE'RE WORKING IN THE DIRT RIGHT NOW. A COUPLE OF QUICK QUESTIONS, DAVID, YOU TALKED EARLIER ABOUT IN A PREVIOUS MEETING ABOUT SOME OF THE HARD STRUCTURE IMPROVEMENTS THAT YOU NEEDED TO BEEF UP THE THE DOCK ITSELF, THE PIER ITSELF, TO SUPPORT THE HEAVIER WEIGHTS AND THAT THAT KIND OF THING. AND YOU'RE RAISING THE THE NEW GANGWAY IS JUST CONSIDERABLY LARGER BECAUSE IT HAS TO ACCOMMODATE THESE LARGER SHIPS. RIGHT? I MEAN, IS IT KIND OF A STANDARD? I MEAN, YOU'RE NOT YOU'RE NOT BUILDING THIS FOR THE JUBILEE, RIGHT? I MEAN, SO THE NEXT CLASS, HOPEFULLY YOU YOU YOU'RE ABLE TO GET UP HIGHER OR LONGER OR WHATEVER IT IS. AND WHAT WE'RE BUILDING FOR IS ALL SHIPS, RIGHT? OKAY. SO AND MAINLY TWO CREW, TWO GANGWAYS BECAUSE OF THE NUMBER OF PASSENGERS AND YOU KNOW, CARNIVAL AND AND THIS IS WHERE MOST OF THE PORTS IN THE COUNTRY ARE GOING IS TO TWO GANGWAY SYSTEM. SO YOU CAN BRING PEOPLE ON IN THE FRONT AND REAR CLOSER TO THE CABINS. AND BUT, YOU KNOW, WE WE ARE USING A DIFFERENT STYLE GANGWAY MORE LIKE AN AIRPORT STYLE. AND THAT'S WHAT'S BEEN DONE AT CG TEN ALSO THAT TYPE OF GANGWAY THERE'S A LIMITED IT'S A SWING. AND SO AS PART OF THIS THIS SITUATION, WE'RE GOING TO TAKE ONE OF OUR OLD GANGWAYS THIS EXISTING THERE AND WE'RE GOING TO GO OUT FOR BID TO GET THAT REFURBISHED. AND AND THE GANGWAY ITSELF, THE OLD GANGWAY ITSELF IS IN GOOD SHAPE. THE TUNNELS AND ALL THAT. IT'S REALLY JUST THE SOFTWARE AND THE SENSOR SYSTEMS. YOU KNOW, WHEN YOU MOVE UP TO A SHIP, IT'S GOT TO GO UP AND DOWN WHEN THE SHIP MOVES AND THINGS LIKE THAT, LIKE JUST LIKE JUST LIKE AN AIRPLANE. BUT YEAH, JUST LIKE AN AIRPLANE. WELL, HOPEFULLY THE AIRPLANE'S NOT DOING THIS, BUT I CAN SEE WHY THE SHIP WOULD BE. AND SO, I MEAN, YEAH, I MEAN, THERE'S A LOT OF A NEW ROOF. WE'RE PUTTING A NEW ROOF ON IT. WE'VE HAD A LOT OF LEAKING ISSUES OVER THE YEARS. AND SO WE'RE WE'RE SOLVING THOSE ISSUES. AND AND YOU'RE JUST COMMENT THAT THE IMPROVEMENT OF CPB FACILITIES HERE CAN BE AN HELP TO THE AIRPORT? YEAH, I MEAN, THIS IS A BRAND NEW I MEAN, THIS WOULD BE THE SECOND FACILITY, YOU KNOW, AND THESE ARE THESE ARE 25,000 SQUARE FOOT FACILITIES. AND SO, YOU KNOW, THEY HAVE SAID TO US IF THERE IS EXPANSION, I MEAN, I WOULD TELL YOU RIGHT NOW, THE ONE OF THE ISSUES YOU HAVE IS THE NUMBER OF OF THEM, THE NUMBER OF THE AGENTS AND BEING ABLE TO SUPPLY BECAUSE WE RUN INTO THIS SEVERAL TIMES ABOUT WHERE THEY HAVE TO BRING IN OTHER ADDITIONAL AGENTS AND SOMETIMES FOR OUR CARGO BUSINESS, TOO, YOU KNOW, SO THAT WILL BE AN ISSUE THAT WILL NEED TO BE ADDRESSED AS THE AIRPORT GROWS AND AS WE GROW ENOUGH WORKFORCE. I ASSUME PIER TEN HAS SIMILAR FACILITIES FOR CPB BECAUSE YOU'VE GOT THE SAME PROBLEM THERE, RIGHT? YOU DO. ANY FURTHER QUESTIONS? DAVID FINKELHOR ON PAGE FOUR OF THE REPORT, IT SPEAKS TO YOUR OVERALL AGGREGATE DEBT SERVICE, AND IN PARTICULAR, IT SHOWS BOTH YOUR PROPOSED BOND ISSUE HERE AS WELL AS THE SERIES 2021 AND SHOWS THE THE DEBT OBLIGATIONS THERE. SO IT SHOWS A PEAK IN YEARS 2024 AND 2025 IS YOUR PEAK AGGREGATE DEBT SERVICE OF OVER $7 MILLION. WHAT IS YOUR WHAT'S YOUR DEBT LIMIT OBLIGATION BY CHARTER? AND THEN ALSO, HOW DOES THAT PLAY INTO THE THE AGREEMENT WITH CARNIVAL IN TERMS OF PAYING THIS BACK TO A CERTAIN PERCENTAGE? I JUST WANT TO MAKE SURE THAT YOU'VE GOT THAT COVERED. THAT'S KIND OF WHAT I WOULD LIKE TO HEAR FROM YOU. YEAH, WELL, ON THE WAY THE THE DEBT SERVICE IS COVERED, THE MAIN MECHANISM, 83% OF THE AMOUNTS BEING PAID TO REPAY THE DEBT COME FROM A MECHANISM CALLED THE COST RECOVERY FEE, WHERE YOU TAKE THE ANNUAL DEBT SERVICE. THAT'S ON WHERE THIS IS AMORTIZED OVER 15 YEARS, 20, 20 YEARS, AND THEN IT'S 5%. [02:25:08] AND SO THAT GENERATES AN ANNUAL DEBT SERVICE AMOUNT, WHICH THEN, BASED ON THEIR GUARANTEED MINIMUM NUMBER OF PASSENGERS, GETS DIVIDED OUT. SO WE GET A COST RECOVERY FEE PER PASSENGER ON THE SHIP AND THEN. THERE'S A TRUE UP AT THE END OF THE YEAR BECAUSE THEY USUALLY HAVE MORE THAN THEIR MINIMUM. SO 83 YEAH, 83% OF THIS COST FOR THIS IS GOING TO BE REIMBURSED BY CARNIVAL OVER A PERIOD OF YEARS. AND WHAT'S THE STATUS OF THAT AGREEMENT? IT'S DONE. OKAY. IT'S COMPLETED. OKAY. AND. ALL RIGHT. AND THEN WHAT IS YOUR OVERALL DEBT LIMIT PER CHART? I MEAN, I DON'T KNOW THAT WE HAVE A SPECIFIC DEBT LIMIT NUMBER IN THE CHARTER. I'VE NEVER HEARD THAT. OKAY. AND HOW DOES HOW DOES THAT AFFECT THE CITY SINCE THE CITY HAS TO ASSUME THAT THE WAY THIS IF I COULD THE WAY THIS IS SET UP THE THE CITY BOUGHT THE ASSETS THAT CONSTITUTE THE PORT FROM THE OLD GALVESTON WHARF COMPANY IN 1940. IT WAS TOWARD THE END OF THE DEPRESSION. WORLD WAR TWO HAD NOT YET STARTED. THE PORT WAS NOT DOING VERY WELL, WHICH IS WHY IT WAS BEING SOLD. SO THEY SET IT UP WITH THIS SEPARATE ENTITY SO THAT IT WOULD BE OFF THE CITY'S BOOKS IF IT DIDN'T SUCCEED. SO IT INDIRECTLY WILL AFFECT YOUR, YOU KNOW, YOUR CREDIT RATING, PERHAPS, YOU KNOW, DEPENDING ON WHAT THE AGENCIES DO. BUT AS FAR AS YOUR DIRECT EFFECT ON YOUR BOOKS, IT SHOULD NOT AFFECT THEM. THEIR ONLY THEIR ONLY CLAIM OR THEIR ONLY LIEN IS AGAINST OUR REVENUES. OKAY. ALL RIGHT. YEAH. I'M SORRY IF THAT WAS MAYBE I SPENT TOO MUCH TIME ANSWERING THAT. I GUESS TO SUMMARIZE, IT SHOWS UP. IT SHOWS UP ON OUR BOOKS AND IT SHOWS UP AS DEBT OF THE CITY. BUT IT IS NOT GUARANTEED BY ANY TAX. YEAH, CORRECT. OKAY. THANK YOU, MR. MAXWELL. ALL RIGHT. ALL RIGHT. THAT'S GOOD. ANY FURTHER ANY FURTHER QUESTIONS ON THIS COUNCIL? THIS WILL BE, AS I MENTIONED, ON AUGUST 24TH, AGENDA FOR COUNCIL'S ACTIONS ON THAT. IF YOU HAVE ANY QUESTIONS, PLEASE DIRECT THOSE BACK TO BRIAN HERE, IF YOU WOULD. HE'LL WORK WITH ROGER AND WITH THE PORT TO GET ANSWERS ON THOSE VERY GOOD. AND I WOULD OFFER THIS, AS YOU KNOW, AS AN INVITATION TO ANYBODY HERE THAT WOULD LIKE TO GO AND SEE WHAT'S GOING ON, BECAUSE YOU A COUPLE YOU'VE ALREADY SEEN THAT AND YOU CAN ACTUALLY SEE WHAT'S HAPPENING OR MOVING DIRT OR SPENDING MONEY AND AND THERE'S A PLAN. AND SO I THINK SOMETIMES TO BE LIKE THE GULF FREEWAY, I THINK WE'RE GOING TO BE CONSTANTLY GOING TO BE DOING TO BE ONE GOING ON FOR THE REST OF YOUR LIFE. THEY SURELY WILL. I THINK FREEWAY HAS ANY. I WAS ONE OF THE COUNCIL MEMBERS THAT WAS THAT WENT ON THE TOUR OF THE CONSTRUCTION. AND ORIGINALLY WHEN I STARTED TO SAY, OKAY, THIS IS HOWEVER MANY MILLIONS OF DOLLARS, I WAS LIKE, I COULDN'T SEE IT IN TERMS OF THE OVERALL SQUARE FOOTAGE, RIGHT? BECAUSE IT'S SUCH A HIGH DOLLAR PER SQUARE FOOT. BUT THEN YOU UNDERSTAND WHAT YOU'RE WORKING WITH AND TO SEE THE CAPITAL IMPROVEMENTS THAT YOU'RE MAKING, ALL OF A SUDDEN IT AND ALSO JUST THE CONSTRUCTION PHASING, THE FACT THAT THEY'RE OPERATING THE TERMINALS WHILE THEY'RE CONSTRUCTING IT, YOU START TO UNDERSTAND WHY THE COSTS ARE WHAT THEY ARE. SO I'D ENCOURAGE YEAH, I'D, I'D ENCOURAGE YOU ALL TO GO SEE SEE IT UNDER CONSTRUCTION MAY TAKE YOU UP ON THAT. WE'D LOVE FOR YOU TO GENTLEMEN THANK YOU SO MUCH. THANK YOU FOR YOUR TIME. THANKS, TONY. THANK YOU. ANY OTHER QUESTIONS? LET US KNOW. THANK YOU. THANKS, ROGER. ALL RIGHT. LET'S MOVE TO ITEM THREE F, PLEASE. [3.F. Discussion Of Cultural Arts Commission’s Current Projects And FY2024 Allocations (Collins/Brown - 20 Min)] JANELLE. OKAY. THREE F DISCUSSION OF CULTURAL ARTS COMMISSION'S CURRENT PROJECTS AND FY 2024 ALLOCATIONS. THIS IS ON ART. EXCUSE ME, DAVID. THIS IS ON OUR AGENDA TODAY. AND DAVID, YOU WANT TO OPEN UP THIS DISCUSSION? I DO. THANKS. BARBARA IS BRINGING A VERY BRIEF SLIDE PRESENTATION. OH, GREAT. LEAD IT OFF, SIR. YEAH. DO YOU HAVE. WE HAVE THIS? YES. OH, THERE WE ARE. GOT IT RIGHT HERE. OKAY. YEAH, I'LL. I'LL LET BARBARA DRIVE. BUT. AND DAVID, I WANT TO WANT TO BE CLEAR ON WHAT WE'RE DISCUSSING HERE. YEAH. WE HAVE AN ITEM ON OUR AGENDA FOR APPROVAL. NO, NO, THAT'S. THAT'S NEXT. THAT'S COMING UP. THIS IS. THIS IS JUST A SHORT PRESENTATION. THIS IS A FOLLOW UP TO WHAT WE APPROVED IN JULY. OKAY. WE BECAUSE WE WERE SO PRESSED FOR TIME WITH OUR SPECIAL MEETINGS IN JULY, I WANTED TO SHOW COUNCIL WHAT YOU THOUGHT. OKAY. SOUNDS GOOD. WE WE ALLOCATED AN ADDITIONAL $100,000 IN THE PRIOR YEAR BUDGET FOR DEVELOPMENT OF CULTURAL ARTS THROUGH THE CULTURAL ARTS COMMISSION. OH, THIS IS OKAY. YEAH. [02:30:01] AND THEY HAD A CERTAIN AMOUNT OF MONEY EXISTING ALREADY IN THAT FUND THAT HAD BEEN LEFT OVER FROM PREVIOUS ALLOCATIONS. AND COMING UP HERE IN THE NEXT COUPLE OF MONTHS, I'M GOING TO BE COMING BACK AND ASKING YOU FOR SOME SERIOUS INCREASE IN OUR ALLOCATION TO THE CULTURAL ARTS COMMISSION. AND I JUST WANT TO DEMONSTRATE THAT THEY ARE DOING A GOOD JOB. WE ALLOCATED, MAYOR, IF YOU REMEMBER. THE FIRST $50,000 WAS 2019, SOMETHING LIKE THAT. IT WAS IT WAS PRE COVID. SO THAT THINGS GOT A LITTLE BALD UP THERE. BUT WE'VE HAD A CULTURAL ARTS COMMISSION IN THIS CITY SINCE I CAN REMEMBER, AND WE'VE NEVER FUNDED IT. WE LITERALLY NEVER FUNDED ANY MONEY FOR IT UNTIL ABOUT 2019. WE GAVE HIM $50,000 AND OUR INSTRUCTION COUNCIL'S INSTRUCTIONS TO THE COMMISSION WAS DEVELOP A REPEATABLE PROCESS FOR FINDING VETTING AND INSTALLING PUBLIC ART. THAT WAS THAT WAS THE THE THE OBLIGATION. AND I THINK THEY'VE DONE A GREAT JOB OF THAT RIGHT THROUGH COVID, WE HAVE ALLOCATED $50,000 IN TWO SEPARATE YEARS AND THEN $100,000 FOR THE SECOND YEAR. THERE WERE SOME SMALLER PROJECTS DONE OUT OF THOSE EARLY, EARLY DOLLARS. BUT LAST MONTH WE APPROVED CONTRACTS TO EXPEND $130,000 THAT THEY HAD IN THEIR FUND. AND I WANTED TO SHOW YOU WHERE THAT MONEY WAS GOING. NOW, OF COURSE, ALL WE HAVE HERE IS CONCEPTUAL DRAWINGS AND SOME SOME MOCK UPS BECAUSE NONE OF THESE HAVE BEEN EXECUTED YET. BUT WE WE APPROVED WE APPROVED THE CONTRACTS AND THOSE CONTRACTS ARE BEING SIGNED. SO THE FIRST THE FIRST ONE IS THIS CALLED THE IRON WING SCULPTURE. IT'S A PUBLIC ART THAT WILL BE GOING IN THE GREEN SPACE OVER CLOSE TO THE ANICO BUILDING. AND I'M NOT GOING TO BE I'M NOT GOING TO DO VERY WELL AT DESCRIBING EXACTLY WHAT THESE THINGS ARE. AND BARBARA CAN HELP ME OUT HERE, PLEASE. YES. THIS IS A PUBLIC ART PIECE AND IT WILL BE WINGS. AND EVIDENTLY, THIS IS SOMETHING FROM THE HISTORY OF GALVESTON, AND IT INCLUDES THE SALVAGED ELEMENTS FROM ARCHITECTURAL PROJECTS SUCH AS LIMESTONE BLOCKS AND BRICK PAVERS, WHICH ALSO INCLUDED CLIMBING ROSES IN THE BACKDROP. SO DAVID WATSON HAS CREATED THIS. THE ACTUAL LOCATION IS 413 19 STREET, WHICH IS RIGHT BY THE AMOCO BUILDING. I THINK THEY'RE HOPING TO BEAUTIFY THIS AREA AND THIS JUST ADDS A LITTLE BIT OF THE FINISHING TOUCHES. YEAH, SO IT'S A SPACE FOR THE PUBLIC TO INTERACT A LITTLE BIT WITH THE ART. IS THIS THE ARCHITECT? DAVID WATSON? YES, THE ANSWER. YOU'RE OFF. DAVID. HE'S HE'S THE ARCHITECT AND THE ARTIST ON THIS. THIS IS GOING ON PRIVATE PROPERTY OR PUBLIC PROPERTY. THIS IS PROBABLY GOING TO BE ON PRIVATE PROPERTY, BUT IMMEDIATELY NEXT TO THE SIDEWALK. AND YES, SO IT'LL BE VIEWED BY THE PUBLIC. SO, YEAH, NO, NO ISSUES WITH SPENDING THIS THIS FUND ON PRIVATE PROPERTY. I MEAN, THE PUBLIC CAN VIEW IT AND I HAVE SIGNED PERMISSION. IT'S, IT'S SIMILAR TO, SAY, A CONCERT OR SOMETHING THAT WOULD BE HELD THAT WE COULD FUND PUBLIC EVENTS AS LONG AS IT'S ACCESSIBLE TO THE PUBLIC VIEWABLE BY THE PUBLIC. THE PUBLIC CAN ATTEND. THERE'S. WHOSE PROPERTY IS IT ON? I THINK DAVID OWNS HIS PROPERTY. I THINK I THINK MY OWN PROPERTY. I THINK IT ALMOST BORDERLINES THE RIGHT OF WAY, YOU KNOW, AND IT'S I MEAN, I DON'T HAVE ANY PROBLEM WITH THIS. I JUST WANT TO MAKE SURE THAT WE'RE WITHIN THE LAW. SO THAT'S THAT'S A VERY GOOD QUESTION. IT'S A GOOD QUESTION. AND IT'S ONE WE'VE THAT THAT HAS BEEN DISCUSSED EXTENSIVELY IN THE CULTURAL ARTS COMMISSION AND LEGALLY AS PART OF THE APPLICATION WHEN YOU FILL IT OUT. OKAY. WE NEED TO MAKE SURE WE GET THAT CLARIFIED WITH LEGAL. YEAH, WE'LL DO IT WELL AND I THINK WE HAVE BUT THOSE THOSE CONTRACTS ARE IN LEGAL RIGHT NOW. ALL RIGHT. IF WE CAN MOVE TO THE NEXT ONE THIS IS THE BOYS AND GIRLS CLUB ON AVENUE P. THEY'VE GOT A BIG BLANK WALL THERE. CATHERINE STROUD IS A LOCAL ARTIST, IS PROPOSING TO ADD A MURAL TO THIS TO THIS BUILDING JUST TO BRIGHTEN UP THE BUILDING IN THE NEIGHBORHOOD. AND ACTUALLY, I BELIEVE THE FRONT PART OF THAT BUILDING DID HAVE A MURAL YEARS AGO. AND THEN AFTER IKE, IT WAS REPAINTED. AND SO THIS WILL BE A NICE TOUCH OVER THERE. MANY YEARS AGO I GOT ICE CREAM, COUNSELOR. YES, I DID, TOO. ALL RIGHT. OKAY. NEXT IS THE GARDEN SHED MURALS. THESE ARE GARDEN SHEDS AT ROSENBERG CENTRAL AND AUSTIN MIDDLE SCHOOL THAT ARE USED FOR THE KIDS GARDENING PROJECTS AND PROGRAMS. AND DEVIN CLEARY, A LOCAL ARTIST, PROPOSED PAINTING THESE SHEDS TO BRIGHTEN THEM UP FOR THE KIDS. IT'S A IT'S A PRETTY SMALL AND SIMPLE EXAMPLE OF PROJECT A $5,000 FUNDING THAT'S ON GISD PROPERTY, [02:35:03] THIRD ISLAND FESTIVAL. THIS IS A LOCAL GROUP OF ARTISTS AND MUSICIANS, SOME OF WHOM YOU MAY KNOW IF YOU HANG AROUND THE PROLETARIAT VERY MUCH. THEY'RE THEY WANT TO DO AN INTERACTIVE ART EXHIBITION AND USE IT WITH MUSIC ART LIVE. PERFORMANCES AND AN ART MARKET. THIS WILL BE THE 8423 STEWART ROAD IS AT THE BREWERY. THE BREWERY. AND IT'S A IT HAS A TIMELINE AND TASKS AND A CONCEPTUAL MAP OF WHAT WHAT WHAT THEY'LL BE DOING. BUT THIS IS A THIS IS A PERFORMANCE AND ACTUALLY THE COMMISSION MET WITH THEM AGAIN THIS PAST WEEK. THIS WEEK. YEAH. JUST TO CLARIFY PAYMENT STRUCTURE AND WHAT CITY STAFF WILL BE RESPONSIBLE FOR CHECKING ON AND RECEIVING INFORMATION. YEAH. YEAH. AS A RULE, THESE GRANTS ARE GIVEN 50% UP FRONT BECAUSE THERE'S COST OF MATERIALS AND SO FORTH LIKE THAT. AND THEN FOR MOST OF THEM, 50% AT THE END, ONCE THE ART IS EXECUTED AND IN THIS CASE, IT'S GOING TO BE THREE PAYMENTS. YEAH. NOW THIS THIS WHAT THE COMMISSION DID WAS, WAS THEY DIVIDED THE MONEY THAT THEY HAD AVAILABLE TO THEM INTO TWO POTS. ONE WAS THINGS UNDER 30,000, $35,000, I THINK IT WAS MAYBE 30,000 FOR THE SMALLER PROJECTS. BUT THEY WANTED ONE LARGE PIECE OF ART. WE WANTED SOMETHING THAT WAS IMPACTFUL AND STRUCTURAL. IF YOU MOVE TO THE NEXT ONE, WE. SO THEY HAD A QUESTION. OH, SURE. THIS IS THIS IS AT THE ISLAND BREWERY. YES. AND IS THIS AN INDOOR OR AN OUTDOOR FACILITY THING? I SEE AN INDOOR STAGE. I THINK IT'S OUTDOOR. I MEAN, MAYBE IT'S BOTH, BUT I MEAN, IT IS THE MAJORITY OF IT'S OUTSIDE AND THIS IS FREE TO THE PUBLIC. IT IS NOT FREE TO THE PUBLIC. I DON'T BELIEVE IT WILL BE FREE TO THE PUBLIC TO HAVE A TICKETED EVENT. YEAH, BUT WE DID HAVE LEGAL WE DO. AGAIN, WE'RE GOING TO BE TALKING ABOUT ARTS AND HISTORIC PRESERVATION ALLOCATIONS HERE IN A FEW MINUTES. ANY NUMBER OF THOSE ARE FUNDING ORGANIZATIONS THAT CHARGE ACCESS KNOW THE ONLY REQUIREMENT UNDER THE LAW THAT WE THAT WE KNOW IS THAT IT HAS TO BE ACCESSIBLE TO THE PUBLIC. YOU KNOW, I MEAN, DICKENS DICKENS WAS DICKENS ON THE STRAND IS AN EXAMPLE THAT'S USED OFTEN. DICKENS IS A PUBLIC EVENT. THAT DOESN'T MEAN YOU CAN'T CHARGE PEOPLE TO ATTEND THE EVENT. THAT IS CORRECT. IT CORRECT ME IF I'M WRONG, THOUGH, IF FOR SOME REASON WE WANTED TO MOVE ON ON THESE PUBLIC ART INSTALLATIONS AND MAKE SURE THAT THEY WERE ALWAYS OPEN FREE TO THE PUBLIC, WE COULD WE COULD APPLY THAT TYPE OF I THINK I THINK WE COULD. BUT THEN AGAIN, YOU'D HAVE TO ASK YOURSELF, WHAT IMPACT DOES THAT HAVE ON THE GRAND ON HISTORIC FOUNDATION? OH, NO, I'M TALKING ABOUT JUST THE PUBLIC ART INSTALLATIONS ONLY. THIS IS AN EVENT, SO. WELL, THIS WILL BE THERE. THIS THIS WILL BE THERE NOT JUST ONE TIME. THEY'LL HAVE THAT AVAILABLE FOR ALL THEIR EVENTS. IS THIS I BELIEVE THIS IS THIS IS JUST A ONE TIME EVENT. YES. OKAY. SO HOW CAN WE GET MORE PUBLIC ART THROUGHOUT THE CITY? WE'RE GETTING READY TO GET TO THE NEXT SLIDE. IT'S COMING BECAUSE BECAUSE THAT IS WHAT YOU KNOW, WHEN YOU LOOK AT THE MURALS, WHEN YOU LOOK AT THE PAINTING OF THE STRUCTURES, WHEN YOU LOOK AT WHAT DAVID WATSON IS DOING, THAT IS PUBLIC ART. BUT IT'S A SMALL THEY'RE SMALL EXAMPLES. THIS IS A LARGER EXAMPLE. AND AS I SAY, THE PUBLIC, THE COMMISSION HAS BEEN GROWING ITS SCOPE AND IN ITS ITS GOALS AS WE GO ALONG. BUT WE WERE VERY CONCERNED IN THE INITIAL FUNDING THAT THERE WAS NO PROCESS IN THE CITY FOR VETTING AND INSTALLING PUBLIC ART. THIS IS IT. AND AS I SAY, IT'S WORKING. NOW, SOME OF YOU MAY KNOW DOUG MCLEAN, THE ARTIST. WHEN THIS CALL WENT OUT FOR $70,000 ART INSTALLATION PIECE, THE CALL WENT OUT NATIONWIDE. AND IT'S AMAZING HOW MANY RESPONSES THE COMMISSION GOT ON THIS FROM MANY OF THEM OUT OF STATE, EVEN. AND I DON'T KNOW IF ANY OF YOU KNOW NICK BARBEE. HE'S A MEMBER OF THE COMMISSION. HE'S HE TEACHES ART AT U OF H. HE'S HE'S ASSURED US THAT AS YOU GROW THE AMOUNT OF MONEY AVAILABLE FOR PUBLIC ART, THAT YOU WILL GET MORE LARGER, MORE ORIGINAL, MORE ENTHUSIASTIC RESPONSE FROM FROM THE ARTIST COMMUNITY THAT WHEN YOU SAY THERE'S A $5,000 GRANT, SOMEBODY FROM MINNESOTA DOESN'T CARE. YOU KNOW, WHEN YOU GO TO $70,000, THEY START CARING. IF WE IF WE GO BEYOND THAT SIGNIFICANTLY, THAT'S THE ANSWER TO YOUR QUESTION. YOU HAVE TO KIND OF GROW INTO THIS. BUT WE'VE DONE THIS, I THINK, FAIRLY RAPIDLY. THIS IS A CONCEPTUAL DESIGN. [02:40:01] THIS WILL GO SOMEWHERE CLOSE TO THE CORNER OF 23RD AND MARKET ON PROPERTY, THE BANK OF AMERICA BUILDING, WHICH IS IT'S NOT SEALY-SMITH, IT'S IT IS THE WAVERLY WAVERLY PROPERTIES, WHICH IS A SEALY-SMITH COMPANY. YOU PROBABLY KNOW SHAY JOBE, WHO'S WHO'S WELL KNOWN IN THE CITY. HE'S A THERE AND FORMER COUNCILMAN MIKE DOHERTY, SEVERAL. THEY'RE VERY ENTHUSIASTIC ABOUT SEEING THIS KIND OF ART COMING TO THEIR TO THEIR PROPERTY SOMEWHERE EITHER ON THIS CORNER THE 23RD STREET SCAPE IMPROVEMENTS IN ADA CORNERS ACCESSIBLE RAMPS MAY CAUSE THIS TO MOVE SOME. THEY'RE PERFECTLY WILLING TO PUT IT IN FRONT OF THE PLAZA THERE ON MARKET STREET. WE'VE DESIGNED SOME SPACES IN TO THE 23RD STREET STREETSCAPE IMPROVEMENTS FOR PUBLIC ART. THIS PIECE MAY BE A LITTLE LARGE FOR ONE OF THOSE, SO THIS MAY BE MORE PRESENTATION IN FRONT OF THE BUILDING. YOU CAN SEE THE SIZE AND SCALE OF IT, ESPECIALLY IN THE LOWER RIGHT. THAT'S DOUG'S. DOUG'S DRAWING OF HOW LARGE THIS WILL BE. IT IS A REPRESENTATION OF, AS YOU CAN SEE, WAVES OF THE SEAWALL. IT'S A STEEL AND CONCRETE BECAUSE I COULD THINK OF LIKE ONE SPOT. WELL, TWO SPOTS, BROADWAY AND ALSO WHERE THE DEAD PALM TREES ARE ON THE 3.5. THAT'S OUR IT'S THE ART OF LIFE. AND THEY'RE ALL HANGING THERE DEAD, YOU KNOW. AND SO VOTE FOR MY STAFF. I'M SURE YOU COULD. SO, MAUREEN, AS YOU KNOW, WE RESTRICTED THIS PIECE TO TO DOWNTOWN BECAUSE BUT YOU KNOW, THE OTHER THE OTHERS ARE BECAUSE OF ITS SIZE AND BECAUSE THIS IS A NEW IDEA. BUT THE MURALS, THOSE THINGS ARE IN JUST VARIOUS PLACES IN THE CITY AS WE AS WE GROW. YES, IT NEEDS TO BE SPREAD OUT. THIS NEEDS TO BE SOMETHING THAT BOTH TOURISTS AND LOCALS CAN INTERACT WITH. IT NEEDS TO BE ISLAND WIDE. YOU KNOW, THIS THIS WHOLE DISCUSSION STARTED I CAN'T REMEMBER WHEN, BUT THERE WAS A NUMBER OF US ON COUNCIL AT THE TIME IN THE PAST THAT WERE SUPPORTIVE OF PUBLIC ART AND AS MARIE MENTIONED, MAKING THIS MORE ISLAND WIDE. AND THAT'S JUST A COMMENT I HAVE, DAVID, AND I THINK AS THE LIAISON TO THIS COMMITTEE THERE, I KNOW YOU'RE THERE LOOKING AT MAKING THIS ISLAND WIDE IN THE FUTURE FOR ANY OTHER FUTURE PROJECTS. THEY ARE INDEED. THE OTHER THING IS I'M JUST GOING TO PUT A PLUG IN. I FELL ON DEAF EARS A NUMBER OF YEARS AGO. THERE'S CITIES, DENVER, COLORADO, THAT REALLY HOLDS THEMSELVES OUT TO BE ART CENTRIC, AND THEY ARE OR EVEN HOUSTON HAS A BEAUTIFUL. HOUSTON DOES. DENVER HAS A PROGRAM CALLED 2% FOR ART. ANY PROJECT THAT IS BUILT IN DENVER OVER A CERTAIN AMOUNT OF MONEY HAS TO SET ASIDE 2% OF THEIR BUDGET FOR PUBLIC ART, AND IT'S BEEN HUGELY SUCCESSFUL FOR THE HOMELESS. WE? I YES, YOU'RE RIGHT, MAYOR. WE'VE TALKED ABOUT THAT BEFORE. AND I WOULD BE I WOULD BE I THINK I WOULD BE SUPPORTIVE OF SUCH SUCH AN EFFORT. BUT WHAT'S BEAUTIFUL ABOUT THESE THIS IS ALL HOTEL TAX MONEY. THIS IS EVERY EVERY NICKEL OF THIS IS TOURIST MONEY. AND THAT'S WHAT'S KEY IS THIS IS SOMETHING LOCALS CAN ENJOY, BUT IT DOES NOT COME OUT OF LOCAL POCKETS. AND I'M GOING TO GO ON RECORD THERE. THE CULTURAL ARTS IS GETTING 100,000 A YEAR. THAT WAS THE. YEAH, THAT'S RIGHT. THAT'S FOR FOR PUBLIC ART. I PERSONALLY WOULD LIKE TO UP THAT. AND THAT'S ONE OF THE THINGS WE'RE GOING TO TALK ABOUT. WE NEED TO GET THE BUDGET OUT OF THE WAY BECAUSE WE'RE TALKING ABOUT FISCAL 24 HERE. AND THIS IS MONEY THAT'S ALREADY SPENT FOR 23. BUT I WANT US TO TALK ABOUT A NEW WAY OF FUNDING THIS SOURCES AND HOW WE CAN HOW WE CAN. I THINK YOU GOT SOME GOOD THOUGHTS COMING TO YOU ONE TIME. THERE'S $50,000 THIS YEAR. 100,000. YOU KNOW, WHEN WE'RE LOOKING AT $30 MILLION OF TAX, THIS IS THIS IS MONEY FOUND IN THE CUSHIONS. WE CAN WE CAN DO BETTER THAN THIS. AND WE'RE GOING TO HAVE TO IF WE REALLY INTEND TO STEP UP OUR PUBLIC ART GAME. I AGREE. SO, LIKE I SAID, THESE WERE CONTRACTS THAT THE COUNCIL APPROVED LAST YEAR. WE JUST DIDN'T HAVE REALLY THE TIME TO GO THROUGH THIS THIS PRESENTATION. SO UNLESS BARBARA HAS ANYTHING TO ADD THAT I JUST I JUST WANTED YOU TO SEE THIS. ARE YOU WORKING ON THIS WITH THE WITH THE COMMISSION? AND WE'RE LOOKING FORWARD TO INTERVIEWING FOR THE COORDINATOR POSITION EARLY NEXT WEEK. AND, AND THAT'S, THAT'S I REALLY THINK IT WILL TAKE OFF AFTER THAT. THAT'S THE BETTER. THE SECOND THING I'VE ALWAYS SAID, CVB DOES SUCH A GOOD JOB BECAUSE THEY HAVE DEDICATED STAFF AND SO BARBARA'S STAFF HAS HAS STAFFED THESE COMMISSIONS, BUT [02:45:07] THEY'RE NOT TASKED WITH GROWING THIS. AND BRIAN AND BARBARA ARE INTERVIEWING FOR A PERMANENT STAFF POSITION FOR CULTURAL ARTS. IT WAS STAFF, THE CULTURAL ARTS COMMISSION AND ARTS AND HISTORIC. AND THAT THOSE THOSE INTERVIEWS, I THINK ARE TAKING PLACE NEXT WEEK. YES, SIR. THAT'S GOING TO BE THESE ARE THESE ARE NOT FUNDED THAN. YES, STAFF CAN GIVE IT RIGHT NOW BECAUSE IT'S A SIDE HUSTLE RIGHT NOW FOR US. IT NEEDS TO BE AND AND THOROUGHLY ENJOYED IT. SHE'S DONE A GREAT JOB, BUT SHE'S LOOKING FORWARD TO WORKING WITH YOU. KEEP TASKING HER WITH OTHER THINGS. I KNOW. I PERSONALLY I THINK THAT WITH THE NEW WONDERFUL, WITH THE NEW HIRE COMING ON TO BE VERY CANDID WITH COUNCILMAN COLLINS PASSION AND BEING THE LIAISON FOR THE CULTURAL ARTS COMMISSION, THIS IS THE BEGINNING, I THINK, OF AN EXPLOSION OF OF PUBLIC ART IN THIS COMMUNITY. I PERSONALLY LIKE TO TAKE A LOOK AT ALL OF OUR CITY PARKS TO SEE WHERE WE COULD ADD SOME THINGS TO REALLY MAKE THEM STAND OUT. THERE'S PLENTY. THERE'S PLENTY OF SPACE. WE'VE GOT PLENTY OF PLACES TO PUT THE ART PALM TREES THAT WOULD BE. I LIKE THAT. I LIKE THAT. I KNOW. IT TAKES A LOT OF YOUR TIME. YEAH, WE'LL JUST COME IN THERE. GOOD. ANYTHING ELSE? THAT'S ALL. THAT'S ALL I HAVE ON THIS. THANK YOU. ALL RIGHT. THANK YOU VERY MUCH. THANK YOU, BARBARA, VERY MUCH. LET'S MOVE TO 3G, PLEASE. [3.G. Discuss A Resolution Of The City Council Of The City Of Galveston, Texas, Distributing And Awarding Fiscal Year 2024 And Fiscal Year 2025 Hotel Occupancy Tax Revenues To Eligible Arts And Historic Preservation Organizations Under Multi-Year Agreements; Authorizing The City Manager To Execute Contracts With Such Recipients Upon Approval Of Those Contracts By The City Attorney; Directing The City Secretary To Send A Certified Copy Of The Resolution To The Park Board Of Trustees; Providing For Findings Of Fact And Providing For An Effective Date. (M. Jadidi)] OKAY. 3G DISCUSS A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GALVESTON, TEXAS, DISTRIBUTING AND AWARDING FISCAL YEAR 2024 AND FISCAL YEAR 2025. HOTEL OCCUPANCY, TAX REVENUES TO ELIGIBLE ARTS AND HISTORIC PRESERVATION ORGANIZATIONS UNDER MULTI YEAR AGREEMENTS AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACTS WITH SUCH RECIPIENTS. UPON APPROVAL OF THOSE CONTRACTS BY THE CITY ATTORNEY DIRECTING THE CITY SECRETARY TO SEND A CERTIFIED COPY OF THE RESOLUTION TO THE PARK BOARD OF TRUSTEES AND PROVIDING FOR FINDINGS OF FACT AND PROVIDING FOR AN EFFECTIVE DATE. AND WE HAVE JOINING US AT THE TABLE, MAYOR RON, WOULD YOU INTRODUCE YOURSELF TO THE COMMUNITY? DIDI, ASSISTANT CITY ATTORNEY FOR THE CITY OF GALVESTON. I'VE WORKED CLOSELY WITH THESE BOTH ARTS, CULTURAL ARTS COMMISSION AND ARTS AND HISTORIC PRESERVATION BOARD SINCE I'VE BEEN HERE. VERY GOOD. AND THIS IS AN ACTION ITEM TODAY. DAVID YEAH, THIS WILL BE AN ACTION ITEM IN OUR MEETING LATER. IT WAS ON FOR ACTION LAST MONTH, LAST WEEK, WHENEVER THAT LAST MEETING WAS. WE'VE HAD SO MANY RECENTLY THAT BUT I ASK THIS BE DEFERRED TO TODAY AND THAT RAISES A LOT OF HACKLES IN THE COMMUNITY BECAUSE THERE'S OPERATIONAL FUNDING FOR A LOT OF ORGANIZATIONS BUILT INTO THIS THIS ORDINANCE. BUT THIS WAS ESTABLISHED MORE THAN 25 YEARS AGO. THIS THIS THIS COMES FROM A 6/8 OF A PENNY OF ART DIRECTED HOT TAX THAT COMES TO THE CITY. SO ONCE AGAIN, WE'RE TALKING ABOUT STRICTLY HOTEL TAX HERE, TOURIST MONEY, I ALWAYS LIKE TO SAY, BUT THIS WAS THIS HAS BEEN CHANGED A NUMBER OF TIMES, BUT IT'S NOT SOMETHING THAT COUNCIL HAS EVER HAD THE OPPORTUNITY TO WORKSHOP. WE DON'T SEE THIS. IT HAPPENS LATE IN THE YEAR. POPS UP ON THE ON THE AGENDA FOR TWO FISCAL YEARS IN A ROW. WE WE USED TO DO SOME ORGANIZATIONS ONE YEAR AND SOME ORGANIZATIONS FOR THREE YEARS. AND I THINK IT WAS 2018, WE MADE THE DECISION TO MOVE EVERYBODY TO A TWO YEAR FUNDING CYCLE. SO THIS WILL BE YOUR ONLY OPPORTUNITY TO SEE THIS BEFORE SUMMER OF 25 WHEN A NEW THE NEW ALLOCATIONS HAPPEN. I'VE ALWAYS HAD MY QUESTIONS ABOUT WHY WE DO IT THIS WAY. THE $100,000 FOR PUBLIC ART IS ACTUALLY CARVED OUT OF THIS 6/8 ALONG WITH THE RESERVE FUND. THAT WAS DONE WHEN MAYOR YARBOROUGH WAS MAYOR OF THE CITY BACK, I THINK IN PROBABLY 2018, MAYBE 2019. AND THAT CAUSED A CERTAIN AMOUNT OF CONSTERNATION BY ITSELF. SO PEOPLE GET USED TO HAVING THESE FUNDS, AS YOU KNOW, AND THEY BECOME OPERATIONAL LINE ITEMS IN THEIR OPERATIONAL BUDGET. AND SO I JUST WANTED COUNCIL TO SEE WHERE THIS MONEY WAS BEING ALLOCATED IS TAX MONEY. YOU NEED TO KNOW WHERE IT'S GOING IN THIS PARTICULAR ROUND, 2425, IT'S $1.8 MILLION. YES, I HAVE A QUESTION. SO I DIDN'T NOTICE THIS UNTIL YOU SENT THIS OUT. SO I REALLY DO APPRECIATE YOU SENDING THIS OUT. BUT HOW DOES THE EAST END HISTORIC DISTRICT ASSOCIATION QUALIFY FOR FUNDS AND WHAT DO THEY COVER? WELL, IT COVERS ADVERTISING AND BROCHURES. THEY THEY DO THREE, THREE THINGS. THEY HAVE AN ANNUAL GARDEN TOUR, ANNUAL HOMES TOUR, WHICH IS ALWAYS THE FRIDAY NIGHT BEFORE DICKENS. AND A LOT OF PEOPLE DO COME DOWN TO SEE FOR THAT AND STAY OVER BECAUSE THEY INTEND TO ATTEND DICKENS. [02:50:04] THEY ALSO PRODUCE BROCHURES FOR THE WALKING TOURS FOR THE THESE DAYS. IT'S A GOLF COURSE TOUR, BUT IT'S GOLF GOLF CART TOUR, BUT IT'S FOR THE TREE SCULPTURES IN THE EAST END. SO THAT'S THAT'S WHAT IT IS. AND I WANT TO BEFORE WE GO TOO FAR INTO THIS, WE HAVE THE CHAIRPERSON OF THE ARTS AND HISTORIC PRESERVATION BOARD, MARY BRANUM, HERE. THEIR THEIR BOARD UNDER MARY'S GUIDANCE, HAS DONE A GREAT JOB OF TURNING THIS AROUND AND MAKING IT MORE OF A OBJECTIVE FIED PROCESS THAN IT HAS IN THE PAST. AND THANK YOU, MARY, TO YOU AND YOUR COMMITTEE. DONE A GREAT JOB WITH THAT. I HAVE ANOTHER QUESTION. THE GALVESTON CENTER FOR TRANSPORTATION AND COMMERCE OR MUSEUM EXCUSE ME. RAILROAD MUSEUM. RAILROAD MUSEUM. YEAH. A COUPLE OF THESE. A COUPLE OF THESE WILL THROW YOU THERE. THERE ARE SOME OF THESE YOU KNOW, IF YOU HAVE QUESTIONS. THE QUESTION I ALWAYS ASK IS, DO THEY BRING IF WE'RE GOING TO SPEND HOT TAX GIVING THESE ORGANIZATIONS, DO THEY BRING TOURISTS FROM OFF THE ISLAND? SOME OF THEM, YOU MIGHT YOU'RE WELCOME TO ASK QUESTIONS ABOUT. BUT ONE OF THEM KIND OF SURPRISED ME WAS THE GALVESTON BALLET. PEOPLE DON'T COME DOWN TO SEE THE BALLET WHERE THE BALLET, I'M SURE THEY DO. BUT I MEAN, THAT'S NOT NOT MOST TO THE PARENTS OF THE PEOPLE THAT SHOULD BE CAREFUL ABOUT HOW I SAY THAT. BUT THAT'S NOT, I THINK, THEIR MAJOR CONTRIBUTION TO CULTURAL ARTS. THEY ARE INVITED TO PERFORM OR PERFORM AT ANY NUMBER OF OTHER EVENTS AND THINGS AROUND AROUND THE ISLAND. YOU'LL SEE THEM A LOT. ONE MORE QUESTION. SURE. GALVESTON ZONE FARMERS MARKET 21,000. THAT IS NEW THIS YEAR. THE $21,000 THE FARMERS MARKET. YOU HAVE A QUESTION. WHAT IS IT COVERING? BEATS ME. HOW DID IT GET ON THERE? AND THAT KIND OF I'D LIKE TO ANSWER THAT QUESTION, TOO, BUT IT ALSO CAN YOU TELL ME MORE ABOUT THE HOW HOW THIS IS SUBJECTIVE? WELL, THE MAYOR'S SAID MAYOR'S COMMISSION COMMITTEE DOES A GREAT JOB AND THEY DO A THOROUGH JOB OF VETTING THESE. THE ORDINANCE MAY RUN, COULD SPEAK MORE TO THE ORDINANCE IN THE CONTRACT WAS REQUIRED. BUT IT IS HOW DOES IT CONTRIBUTE TO TOURISM? THAT'S KIND OF THE QUESTION. I'M NOT I'M NOT 100% SURE THAT'S COMPLETELY ANSWERED BY SOME OF THESE ORGANIZATIONS. THERE'S SOME FAIRLY RIGID TECHNICAL REQUIREMENTS, QUARTERLY REPORTING AND THAT SORT OF THING. IT CAN'T THIS CAN'T BE MORE THAN 25, 20% OF THEIR TOTAL OPERATING BUDGET. IT IS 25% OF THE TOTAL OPERATING BUDGET. YOU KNOW, AND THERE ARE A COUPLE OF A COUPLE OF THE SMALLER ONES HERE. I'VE ENCOURAGED PEOPLE LIKE ALL CULTURAL CENTER, OLD CENTRAL CULTURAL CENTER TO COME APPLY FOR THIS BECAUSE, YOU KNOW, THERE DEFINITELY ARE AND THEY'RE BECOMING MORE OF A TOURIST STOP. AND I THINK. BUT THEY HAVE GREAT PLANS TO EXPAND OVER THERE. BUT THEY HAVE A VERY SMALL OPERATIONAL BUDGET. SO $3,000 WAS REALLY THE KIND OF THE LIMIT THEY COULD THEY COULD REQUEST THE 21,000. CAN WE GET THE DETAIL ON THAT? I'M HAPPY TO, YOU KNOW, EVEN TRY TO. MARY, I'M SURE MARY WOULD BE WILLING TO ANSWER THIS ANSWER. THERE THERE ARE 2 OR 3. I MEAN, I DON'T WANT TO JUST PICK ON PICK ON FOLKS. SOME OF THEM ARE FAIRLY OBVIOUS. BRIAN MUSEUM THE OPERA HOUSE, GPH, THE KAVALA CENTER, THE KAVALA HISTORICAL NEO CULTURAL IS YOU KNOW, THE MURAL IS DOWNTOWN THE WHICH ONE? THE EQUALITY MURAL. THIS IS IN THAT BUILDING RIGHT THERE BEHIND IT. RIGHT. IT'S ON THAT BUILDING. THE NEO CULTURAL CENTER IS IS MOSTLY AFRICAN AMERICAN AND JUNETEENTH HISTORY MUSEUM. THEY GET THEY GET A FAIR AMOUNT OF TRAFFIC IN THERE. JOHN, TO ANSWER YOUR QUESTION, THOUGH, TO OBJECTIFY THIS IS DIFFICULT ON ALL THESE ORGANIZATIONS. SOME OF THEM IT'S EASIER THAN OTHERS. BUT TO SAY HOW MANY PEOPLE CAME DOWN AND SPENT THE NIGHT HERE ON THE ISLAND AND ATTENDED THESE PARTICULAR EVENTS AND HOW THEY HAVE A IMPACT ON PEOPLE COMING AND SPEND THE NIGHT, IT IT'S VERY DIFFICULT TO FIGURE OUT. IT IS DIFFICULT. AND THERE IS NO LEGAL REQUIREMENT THAT AN ORGANIZATION GETTING HOT TAX MONEY PRODUCE NECESSARILY A NUMBER OF HOTEL NIGHTS. RIGHT. SO FORTH AND SO ON, BECAUSE I KNOW SOME OF THESE ORGANIZATIONS WOULD HAVE A, I SUSPECT, A HARD TIME DEMONSTRATING THAT THEY PRODUCE ENOUGH HOTEL REVENUE, [02:55:05] BUT WOULD LIKE THAT HOTEL ON THE 21,000. MARY, COME ON UP AND MARY'S GOT THAT. I WILL I WILL POINT OUT, MARIE, THAT THIS IS NOT A THAT THAT THIS IS ON FOR CONSIDERATION. BUT IT'S NOT JUST AS A LUMP SUM NECESSARILY. IF COUNCIL WANTED TO INCLUDE OTHERS, EXCLUDE SOME OF THESE CHANGE SOME OF THESE NUMBERS, THAT'S IN OUR PURVIEW TO DO THIS IS THIS IS MERELY THE COMMISSION'S THE COMMITTEE'S RECOMMENDATION. SHARON, YOU HAD A QUESTION JUST A QUICK QUESTION. WHEN YOU STATED LIKE JUST SAY THE 100,000, THEY DON'T RECEIVE THE 100,000 UPFRONT, THEY RECEIVE 50. THE NO, NO, NO, NO, NO. THAT WAS THAT WAS THE ART. THAT'S THE ARTISTS THAT ARE THAT ARE PRODUCING PUBLIC ART UNRELATED TO THIS. THE WAY THIS WORKS, IT'S AN ALLOCATION. AND MR. BUCKLEY WAS GOING TO ANSWER A QUESTION FOR ME. THIS USED TO GO INTO THE PARK BOARD FINANCE OFFICE, AND THEN MR. FRAZIER WOULD ACTUALLY WRITE THE CHECKS AT THE CITY'S DIRECTION. I'M NOT SURE IT'S DONE THAT WAY ANYMORE. I THINK THIS MAY BE GOING INTO MIKE'S OFFICE NOW AND OUR FINANCE, AND THAT'S WHERE THE CHECKS ARE CUT FROM. THAT WAS THAT YOU THINK THAT'S HOW IT WORKS NOW? IT'S WORKING? YEAH, THAT WAS THE INTENT. I WASN'T SURE THAT WAS ACTUALLY SO NO. YES AND NO. SO WHAT HAPPENS IS THAT THOSE RECEIPTS COME IN TO FINANCE MONTHLY HOT TAX RECEIPTS. THIS IS CONVERTED ESSENTIALLY BY THEM TO A PERCENTAGE $100,000 IS X PERCENTAGE OF THE $1.8 MILLION ALLOCATION. SO EVERY MONTH WHEN IT COMES IN, THEY THEY THEN SEND A CHECK TO THAT ORGANIZATION FOR THAT PERCENTAGE OF THE SIX OF THEM, RIGHT. THE MONEY THEY RECEIVE, THEY ALLOCATE IT MONTHLY. THEY THEY GIVE IT TO THE THEY THEY WRITE THEM EVERY MONTH, EVERY MONTH, EVERY MONTH. THEY WRITE THEM A CHECK. THAT IS CORRECT. THE THE THE. SO THIS BECOMES A CAP OF HOW MUCH TAX MONEY IS SPENT IF IN THE UNLIKELY EVENT SALES TAX REVENUES ARE DOWN. BUT OF COURSE, IT VARIES OVER THE OVER THE COURSE OF THE YEAR. SO IT'S NOT THE SAME EVERY MONTH. AND IF THE TOTAL WERE TO COME IN LESS THAN $1.8 MILLION IN THAT FUND, THIS THESE WOULD BE REDUCED BY A CONCOMITANT AMOUNT BECAUSE IT'S A PERCENTAGE OF RECEIPTS. IT'S NOT A GUARANTEED AMOUNT. DOES THAT MAKE SENSE? IF WE IF WE COLLECT MORE HOT MONEY, THIS IS A MAXIMUM. THIS IS STILL A MAX MAXIMUM. MARY, LET'S WE HAD A QUESTION ABOUT YOU. GO AHEAD. REPEAT THAT, PLEASE. FARMERS MARKET. ACTUALLY, I QUESTIONED THAT MYSELF. OBVIOUSLY, WE HAVE A BOARD OF SEVEN ON THE CHAIR WHICH WE APPOINT, WHICH THE CITY COUNCIL APPOINTS. AND THE APPLICATIONS ARE DIVIDED AMONG THE SIX BOARD MEMBERS BECAUSE IT'S REQUIRED BY ORDINANCE THAT THERE BE TWO BOARD MEMBERS THAT REVIEW THE APPLICATIONS. SO THEY'RE DIVIDED AMONG SIX. AND THEN I REVIEW ALL OF THE APPLICATIONS. AND I DO AGREE WITH YOU THAT I QUESTION THE FARMER'S MARKET. I QUESTIONED SOME OTHERS. AND AGAIN, IT'S LIKE THE MAYOR SAID, IT'S VERY DIFFICULT TO BE 100% SUBJECTIVE ON THAT BECAUSE UNLESS YOU ACTUALLY REQUIRE. A ZIP CODE COUNT WITH ADDRESSES OF EVERY ENTITY. YOU'RE NEVER GOING TO KNOW, BUT THEY HAVE TO TELL YOU WHAT THEY'RE USING. THEY DO TELL YOU. AND IT'S IT'S IN THEIR APPLICATION. AND THEY'RE DOING A NUMBER A NUMBER OF EVENTS THAT ARE JUST FROM SELLING ITS ADVERTISING AND MARKETING. YEAH. THEY'RE NOT JUST SELLING PRODUCE AND SO FORTH. IT'S A NUMBER. IT'S A NUMBER OF EVENTS. AND I DID BRING IT UP AT OUR BOARD MEETING AND UNANIMOUSLY THAT EVERYONE DID WANT IT AND SAID THEY'RE DOING SO MUCH OF THEIR BROADCASTING BY ADVERTISING OFF ISLAND IN THE COUNTY AND OUTSIDE OF THE COUNTY FOR FUTURE EVENTS AND THEY'VE BEEN PUTTING ON EVENTS. SO AGAIN, I'M ONE VOTE OUT OF THAT. BUT TO CLARIFY, THE MONEY THAT IS GIVEN IS USED FOR ADVERTISING. IT'S ONLY FOR MARKETING AND ADVERTISING. IT CANNOT BE USED FOR ANYTHING ELSE. THAT'S NOT 100% TRUE. THE THE THAT THAT'S WHAT THE COMMITTEE COMMITTEE HAS ALWAYS RESTRICTED IT TO. BUT IF YOU READ THE ORDINANCE, IT CAN BE USED OUTSIDE OF ADVERTISING. IT CAN BE USED FOR PRODUCTION OF EVENTS. IT CAN. BUT, BUT BUT YOU'VE YOU'VE KIND OF DELINEATED FOR ADVERTISING THEIR ADVERTISING MARKET. WE'VE WE'VE WE'VE NARROWED IT DOWN AND BECAUSE IT WAS WITH WHAT THEY WHAT THEIR APPLICATIONS ARE FOR IS THE ADVERTISING AND THE MARKETING AND THEY HAVE TO OBVIOUSLY PROVIDE MATERIALS. YOU AUDIT THIS AND YES. AND DURING AND DURING THE COURSE OF THE YEAR, YOU'RE ADELA POLICY. THAT'S IN ACCOUNTING. SHE AND I COMMUNICATE CONSISTENTLY WHEN THE QUARTERLY REPORTS COME IN OR NOT, AS MAY BE, AND AND WHAT THE REPORTING CONSISTS OF. [03:00:04] SO THAT'S SOMETHING I HAVE BEEN INVOLVED WITH ALL, ALL YEAR LONG. AND THIS IS 25% OF THEIR TOTAL BUDGET, NOT NOT JUST THE TOTAL OPERATING BUDGET. IT'S A MAX OF 25% OF THEIR BUDGET, OF THEIR BUDGET. SO THEY COULD TAKE THIS WHOLE AMOUNT AND SPEND IT TOWARDS MARKETING. I MEAN, THEY WOULD NOT NEED A MARKETING BUDGET IF THIS WAS. YEAH, IT'S GOT THERE WE IT'S IN WHEN THEY PROVIDE THE BUDGETS AND PAST HISTORICAL INFORMATION THAT DOLLAR AMOUNT IT'S NOT LIKE I'M GOING TO HYPOTHETICALLY SAY THEY GET $25,000 BUT IN THEIR BUDGET THEY SHOW $5,000 IN MARKETING IT'S NOT GOING TO FLY, NUMBER ONE. NUMBER TWO, NONE OF THEM GET EVEN CLOSE TO THAT AMOUNT. MOST OF IT IS, I'M GOING TO SAY, WITHIN THE LITERALLY THE 1% RANGE. I THINK OUR HIGHEST WAS 19% OF THE OVERALL BUDGET OF THEIR OVERALL, THE OVERALL BUDGET. BUT BUT WHEN YOU LOOK AT YOU'VE GOT A BUDGET, THEY'VE GOT TO HAVE MARKETING AND ADVERTISING IN THERE. THEY'RE NOT GOING TO GET ANYTHING MORE THAN WHAT IS IN THAT MARKETING AND ADVERTISING BECAUSE THAT. YEAH, BUT YOU COULD PUT THAT'S THE KEY BUDGET 2% FOR. BUT YOU CAN'T ADD ANYTHING. I MEAN, THAT'S ONE MORE QUESTION REAL QUICK. GOING BACK TO THE SUBJECTIVE AND OBJECTIVE QUESTION, WHAT DO WE HAVE IN THE ORDINANCE THAT WE THAT IS OBJECTIVE THAT WE THESE THESE ARE THIS IS WHAT WAS REQUIRED. THIS IS WHAT WE NEED TO SEE FOR YOU TO MEET THE QUALIFICATIONS TO. SO WHEN THE BOARD MEETS, THEY THEY HAVE CRITERIA THAT THEY'RE SUPPOSED TO CONSIDER. AND ONE OF THOSE CRITERIA IS VISITOR APPEAL. AND THEN FURTHER, THERE ARE DELINEATED USES IN THE ORDINANCE. FOR WHAT? FOR WHAT? THIS MONEY IS SUPPOSED TO BE SPENT ON MARKETING, BUT WITH EMPHASIS ON ARTS AND HISTORIC PRESERVATION. AND THEN ARTS IS FURTHER DELINEATED INTO DANCE PAINT. THAT'S AN EXTRACT FROM SCULPTURE. YEAH, IT'S AN EXTRACT FROM 351. RIGHT? STATE STATUTE 5351 THAT DELINEATES WHAT? THE TAX CODE IN OUR ORDINANCE. OUR ORDINANCE, THE ONE THAT WE'RE FUNCTIONING UNDER NOW, THIS IS JUST NOT SOMETHING THAT MARY AND HER GROUP HAS MADE UP. IT IS IT IS OUTLINED IN THE ORDINANCE HOW THEY ARE SUPPOSED TO HOW THEY'RE SUPPOSED TO APPROACH THIS. IT'S VERY DETAILED, MAY NOT BE AS DETAILED AS WE WANT IT, BUT IT'S DETAILED. AND IT TOOK US MONTHS. I REMEMBER WHEN WE DID THIS, THIS TOOK THE COUNCIL AT THE TIME, MONTHS OF WORKING ON THIS, TO COME UP WITH WHAT WE HAVE NOW, AND I WILL. THERE ARE A COUPLE OF A COUPLE OF THINGS THAT I THAT I'VE ALWAYS QUESTIONED. ONE, NO ORGANIZATION CAN RECEIVE MORE THAN 25% OF THE MONEY THAT IS IN THIS FUND. SO NOBODY CAN GET MORE THAN 25% OF THE $1.8 MILLION THAT. BUT THAT AS HOT TAX GOES UP, THIS GOES UP. THERE IS NO THERE'S NO THERE'S NO LIMITATION ON IT. THAT'S SOMETHING I WOULD LIKE TO SEE US DO IN THE VERY NEAR FUTURE. NOT FOR THIS ALLOCATION BECAUSE PEOPLE HAVE ALREADY WRITTEN THESE INTO THEIR BUDGETS AND SO FORTH. BUT THE OTHER THING IS IT IS IT IS BY THE COMMITTEE RESTRICTED TO ADVERTISING PROMOTION. THAT'S NOT WHAT IT SAYS IN THE ORDINANCE. THE ORDINANCE ALLOWS HISTORIC PRESERVATION, ALLOWS EVENTS AND SO FORTH, BUT IT DOESN'T REQUIRE ANY OF THAT ADVERTISING TO BE OUT OF MARKET. SO ADVERTISING LOCALLY IS IS VALID USE UNDER THE ORDINANCE OF HOT TAX AS ADVERTISING IN DALLAS AND WHICH IS NOT HOW, AS A RULE, CVB OPERATES. DAVID. DAVID, I'VE GOT A COUPLE OF QUESTIONS FOR YOU. SO OUTSIDE OF THE ORDINANCE WHICH COUNCIL JUST DESCRIBED, AS FAR AS ONE OF THE METRICS, DO YOU HAVE ANOTHER SET OF METRICS OR RUBRICS THAT YOU USE TO KIND OF GRADE THESE VARIOUS APPLICATIONS ON? WE TAKE WHAT'S IN THE ORDINANCE, WHICH IS HERE FOR REFERENCE IS 2249 AND PROGRAM QUALITY IS IS 40 IS 40 POINTS AND IT GOES INTO ARTISTIC. I'M NOT GOING TO READ THE WHOLE THING, BUT YOU'VE GOT YOU'VE GOT A YOU'VE GOT A RUBRIC THAT YOU USE TO BREAK DOWN EACH EACH ONE OF THESE INDIVIDUAL ITEMS AND GRADE THEM ACCORDINGLY. ALL RIGHT, GREAT. SUPER SECOND QUESTION. IT WOULD BE GREAT TO SEE AND MAYBE THIS IS A REQUEST KIND OF WHAT'S HAPPENED ON PREVIOUS YEARS. I MEAN, THIS IS JUST A SNAPSHOT IN TIME THAT'S HAPPENED THIS YEAR. WHAT'S YOUR QUESTION? MY QUESTION OR MY REQUEST IS, IS CAN WE GET A CHART THAT SHOWS WHAT HAS HAPPENED IN THE ALLOCATIONS FROM PREVIOUS YEARS? YOU MEAN WHAT THE ALLOCATIONS HAVE BEEN? YES. OH YEAH. SO THAT WE CAN SEE HOW THAT HAS CHANGED. WHERE'S WHERE'S THE MONEY GOING. IT'S A FUNNY I MEAN IT'S A FUNCTION OF THE INCREASE IN TAX. [03:05:04] OH NO, I'M SURE IT IS. BUT IT WOULD JUST BE GOOD TO SEE THE NOT NECESSARILY THE PERFORMANCE OF THE ORGANIZATIONS PREVIOUSLY, BUT SEE WHERE OUR HISTORICAL FUNDING HAS GONE. YOU WOULDN'T SEE A DOLLAR AMOUNT LIKE WHAT THEY GOT IN THE LAST. YES, I CAN GIVE YOU THAT. GREAT. SURE. THAT'S ALL I'M LOOKING FOR. MARY, IF YOU WOULD GET THAT TO JANELLE AND SHE'LL DISTRIBUTE IT. CERTAINLY WILL. THAT YOU MAY HAVE ONE ALREADY. MIKE, I DIDN'T SEE YOUR HAND. GO AHEAD. I'M SORRY. YOU JUST GOT ME. OH, OKAY. LOOK, WE COVER YOU. WE HAVE IT. JANELLE HAS IT. WE HAVE JOHN AND THEN MARY. JOHN, SINCE IT WAS BROUGHT UP ABOUT THE FARMERS MARKET, HOW DOES SOMETHING LIKE THAT AND THAT'S WHY I'M ASKING ABOUT KIND OF THIS OBJECTIVE CRITERIA. HOW DOES SOMETHING LIKE A FARMER'S MARKET FALL INTO ARTS AND HISTORICAL PRESERVATION, RIGHT? SO THIS VISITOR APPEAL IS ITS ADVERTISING AND MARKETING TOWARDS VISITORS. SO BASICALLY THE QUESTION THAT THE BOARD MEMBERS WILL ASK THEMSELVES IS WHAT DO THESE EVENTS AND DO TO ATTRACT VISITORS. OKAY. AND IT GOES BACK TO THE STATE CODE ON HOT IS WHAT IT GOES BACK TO. I GOT TO SAY, THOUGH, I HAVE AN ISSUE WITH 21,000 IN THEIR FIRST YEAR OF REQUEST WITHOUT ANY DETAIL. I THINK THAT'S A HIGH NUMBER. CAN I ADD TO THAT, THAT THE AMOUNTS IN HERE ARE NOT NECESSARILY AND PROBABLY IN MOST CASES NOT THE AMOUNT REQUESTED BY THE ORGANIZATION. THE COMMITTEE I AM I HAVE BEEN UNCLEAR FOR SEVERAL YEARS EXACTLY HOW YOU GET TO THE $21,000 IF THAT'S NOT WHAT THEY REQUESTED, IF THEY REQUESTED 25, HOW DID YOU GET FROM 25 TO 21 AND SO FORTH? ANY WHICH WAY? I HAVE AN ISSUE WITH THAT. AND THERE ARE OTHERS ON HERE. I IF YOU READ AND AGAIN, I DON'T WANT TO BE PERCEIVED AS PICKING ON ANYBODY, BUT FOR INSTANCE, MOODY GARDENS IS IN THEIR CHARTER TO PAY FOR LOCAL FOURTH GRADERS TO VISIT MOODY GARDENS. IT'S A GREAT THING. IT IS A GREAT THING. BUT WHAT'S IT GOT TO DO WITH TOURISM? YEAH, IT DIDN'T HAVE THE HOT. I WANT TO MAKE CLEAR TOO, AS WE'RE TALKING, THIS IS ONLY FOR NONPROFITS. YES, THAT'S EXACTLY RIGHT. IN OUR ORDINANCE, IT'S ONLY FOR ORGANIZATIONS THAT ARE NONPROFIT. THESE ARE NOT FOR FOR PROFIT ORGANIZATIONS. LET'S KIND OF WIND THIS UP. ANY OTHER QUESTIONS ON THIS? THIS WAS MORE FOR EDUCATIONAL PURPOSES. WELL, SOMETHING WE ARE THE COUNCIL NEEDS TO BE AWARE OF. LIKE I SAID, IT'S NEVER BEEN WORKSHOPPED AND I'VE NEVER QUITE UNDERSTOOD WHY. IT'S JUST ALWAYS SORT OF BEEN SHOVED THROUGH IN THE CONSENT AGENDA. BUT IT IS ON FOR CONSIDERATION THIS EVENING AND IN COUNCIL'S PURVIEW AS TO WHAT WE ALLOCATE AND HOW MUCH WE ALLOCATE, WHO WE GIVE IT TO. SO CAN WE MAKE CHANGES? OH, OF COURSE. OKAY. OF COURSE YOU CAN. ALL RIGHT. THAT'S ON OUR AGENDA THIS AFTERNOON. WELL, HERE, SHORTLY LATER TONIGHT, DAVID AND MARY, WHY DON'T YOU STAY HERE? [3.H. Discuss An Ordinance Of The City Of Galveston, Texas, Modifying Rules And Policies Governing The Arts And Historic Preservation Board By Amending Chapter 33 – Taxation, Article Iii Hotel Occupancy Tax Sec. 33-95 To Amend The Required Meeting Dates; Add A Penalty Provision For Non-Compliance In Quarterly Reporting; Making Various Findings And Provisions Related To The Subject And Providing For An Effective Date (M. Jadidi)] LET'S MOVE TO ITEM THREE, PLEASE, JANELLE. OKAY. THREE H. DISCUSS AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, MODIFYING RULES AND POLICIES GOVERNING THE ARTS AND HISTORIC PRESERVATION BOARD BY AMENDING CHAPTER 33 TAXATION. ARTICLE THREE HOTEL OCCUPANCY TAX SECTION 33 3395 TO AMEND THE REQUIRED MEETING DATES, ADD A PENALTY PROVISION FOR NONCOMPLIANCE AND QUARTERLY REPORTING, MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT AND PROVIDING FOR AN EFFECTIVE DATE. MAYOR RON, DID YOU WANT TO INTRODUCE THIS? YES. SO THIS IS A CHANGE. A CHANGE IN THE CODE? SLIGHT CHANGE IN THE CODE FOR HOW THE BOARD OPERATES. MY WONDERFUL COLLEAGUE DONNA HELPED ME WITH SOME LANGUAGE ON AMENDING THE THE LANGUAGE FOR WHEN THE BOARD MEETS. CURRENTLY, IT SPECIFIES THAT THE BOARD HAS TO MEET FOR SIGNING CONTRACTS THE SECOND WEDNESDAY OF EVERY AUGUST. AND IT'S VERY APPARENT THAT THIS IS AN ORDINANCE THAT'S BEEN WRITTEN AND REWRITTEN SEVERAL TIMES. SO THIS IS KIND OF A HOLDOVER OF A PREVIOUS VERSION. SO ONE THING THIS ORDINANCE DOES IS AMENDS THE LANGUAGE FOR WHEN THEY WILL MEET TO INSTEAD OF THE SECOND WEDNESDAY IN AUGUST TO A MEETING AS SOON AS PRACTICAL AFTER COUNCIL APPROVES THE FUNDING AMOUNTS. SO THAT IS JUST A CLARIFICATION AND A HOUSEKEEPING ITEM TO MAKE IT EASIER FOR THE BOARD TO MEET. I COULD COMMENT THAT THE MEETING THIS YEAR WAS GOING TO WAS SCHEDULED TO HAPPEN THE DAY BEFORE COUNCIL WAS TO CONSIDER THIS YESTERDAY AS A MATTER OF FACT. SO, SO IT WAS A LITTLE HARD FOR THEM TO MAKE FORMAL DECISIONS IF COUNCIL HADN'T WEIGHED IN ON THIS. SO IT'S JUST JUST IT'S JUST MOVING, ALLOWING MOVEMENT OF THE DATES. THAT'S ONE HOUSEKEEPING ITEM. AND THEN THE OTHER ITEM IS, AND MARY KIND OF ALLUDED TO THIS EARLIER, SOME ORGANIZATIONS, A SMALL AMOUNT, HAVE HAD ISSUES TURNING [03:10:05] IN THEIR REQUIRED QUARTERLY REPORTING AND ON TIME. THERE IS CURRENTLY A PENALTY PROVISION FOR IF THEY DON'T SUBMIT THEIR QUARTERLY REPORT ON TIME, AND THAT IS REFLECTED IN A DOCKED PERCENTAGE OF THEIR NEXT FUNDING ROUND. BUT ONE ISSUE WE'RE HAVING IS WHAT IF THEY DON'T DO IT A SECOND TIME? THE ORDINANCE IS SILENT AS TO IF THEY CONTINUALLY CONTINUOUSLY FAIL TO PROVIDE THEIR QUARTERLY REPORTS. SO AGAIN, WITH DONNA'S HELP, WE ADDED LANGUAGE TO THE CODE THAT SPECIFIES THAT IF A IF AN ORGANIZATION IS AGAIN DELINQUENT IN SUBMITTING THEIR QUARTERLY REPORTS, THEN AT THAT POINT IT WOULD BE UP THEY WOULD HAVE THE ORGANIZATION WOULD HAVE TO SHOW CAUSE AS TO WHY THEY'RE LATE AND AND THEIR SUBJECTIVE FURTHER SUBJECTIVE FURTHER PENALTY UP TO AND INCLUDING FORFEITING THEIR ENTIRE FUNDING AMOUNT. THAT IS THIS MAKES IT COUNCIL'S PURVIEW. UNLIKE WHEN WE REMOVE SOMEBODY FROM A COMMITTEE FOR NOT ATTENDING IT COMES TO COUNCIL, SO IT BECOMES COUNCIL'S PURVIEW. I WILL COMMENT THAT ORGANIZATIONS LIKE THE GRAND OR GPH, THEY'VE GOT PROFESSIONALS ON BOARD WHO ARE VERY GOOD ABOUT PRODUCING THESE THINGS, BUT SOME OF THE SMALLER ORGANIZATIONS HAVE HAD SOME TROUBLE HISTORICALLY, BUT IT IS REQUIRED BY LAW THAT THAT COUNCIL, THAT THE CITY SEE THEIR QUARTERLY REPORTS. AND I THINK THAT'S VERY APPROPRIATE PERSONALLY ON THAT. THIS IS ITEM EIGHT ON OUR AGENDA HERE COMING UP HERE SHORTLY. ANY QUESTIONS ON THAT? OH, I DID WANT TO SAY I SENT THIS TO THE BOARD SINCE THEY HAVEN'T HAD A CHANCE TO MEET TO LOOK OVER IT. I GOT A THANK YOU FROM MARY AND I ALWAYS APPRECIATE YOUR KIND WORDS. AND THEN ANOTHER BOARD MEMBER GOT AN EMAIL FROM THEM THIS MORNING AND THEY SAID THAT THEY DIDN'T SEE ANY CHANGES THAT WERE NECESSARY TO WHAT DONNA AND I WROTE. MAY I MAKE A COMMENT? YES, MA'AM. I WOULD LIKE TO MAKE A COMMENT ON THIS. AND I UNDERSTAND WHAT DAVID SAID WITH THE LARGER ORGANIZATIONS. I MEAN, THE SMALLER ORGANIZATIONS AND I MEAN, I'VE BEEN ON THE BOARD FOR A WHILE, AND PRIOR TO THAT, I WAS A MEMBER OF AN ORGANIZATION THAT WAS A RECIPIENT. WE'VE NEVER HAD ONE ISSUE WITH THE SMALLER ORGANIZATIONS WHICH ARE BASICALLY VOLUNTEER. OKAY, MAYBE. I'M SORRY. THAT'S OKAY. I'M NOT RECOMMENDING YOU. DAVID. ACTUALLY, IT WAS ONE OF THE LARGER ONES. AND I CAN SAY THE THE BOARD AND THE CITY STAFF ACCOUNTING TRIED EVERY EFFORT TO GET THEM TO COMPLY AND RESPOND. AND AND IT JUST BECAME A MOOT POINT. NOTHING EVER HAPPENED. THE OTHER THING WAS, IN REVIEWING THIS AND THANK YOU, MAREN, IS THAT THESE NEEDED TO BE CLEANED UP, AS YOU WELL KNOW, GOING BACK TO 19 AND THEN 20 TO 21, 22. MANY OF THESE WERE SO CONVOLUTED BECAUSE THERE WERE SO MANY DIFFERENT ORDINANCES, BUT THEY REALLY DIDN'T SEGWAY INTO ONE ANOTHER. AND MAREN AND I WORKED DILIGENTLY ON THIS, AND I FEEL THAT WE'VE REACHED A REALLY GOOD POINT. AND I THINK THERE'S STILL SOME MORE FINE TUNING TO BE DONE. BUT I WANTED THIS COMPLETED SO WHEN WE DO CONTRACTS. THAT THERE ARE CURRENT RULES, REGULATIONS AND PENALTIES. THANK YOU, MARY. APPRECIATE IT. THANK YOU, MAYOR RON. APPRECIATE IT. AND DAVID, THANK YOU. SO THANK YOU. ALL RIGHT. THANK YOU. LET'S DO. [3.I. Discussion And Possible Amendments To The Taxi Cab Ordinance (Lewis/Brown - 15 Min)] LET'S MOVE TO THREE, PLEASE, JANELLE. THREE DISCUSSION AND POSSIBLE AMENDMENTS TO THE TAXICAB ORDINANCE. THIS IS SOMETHING THAT COUNCILWOMAN LEWIS HAD BROUGHT FORWARD AND HAD ASKED TO BE ON THIS AGENDA. AND I'LL TURN THE OVER TO COUNCILWOMAN LEWIS. PASS THIS. YES, THERE WAS SOME CONCERNS ABOUT THE AGE OF VEHICLE THAT IS UNDER THE A COUPLE OF THE LOCAL TAXICAB COMPANIES HERE AT FIRST STARTED WITH BUSY BEE, WHICH HISTORICALLY HAS BEEN HERE 80 YEARS. BUT WE WERE CONCERNED BECAUSE OF THE SERVICE THAT IT PROVIDES THE RESIDENTS. THE CABS ARE IN GREAT SHAPE. IT'S JUST THAT THE ORDINANCE SAYS THAT IT CAN'T BE OVER TEN YEARS OLD. AND NOT ONLY DID IT AFFECT THAT, BUT ANOTHER LOCAL TAXICAB COMPANY HERE I SPOKE TO TROPICAL. AND NOT ONLY THAT, BUT ONE LADY WHO HAS A SMALL BUSINESS, A TOURIST BUSINESS. IN THREE YEARS, HER VAN WILL BE TEN YEARS OLD. SO THAT WOULD AFFECT HER VAN AS WELL. AND I ALSO SPOKE TO READY, SET, GO OWNER WHO IS SUPPORTIVE OF US LOOKING AT THIS ORDINANCE AND SEEING IF WE [03:15:07] CAN AMEND IT, MAKE A CHANGE TO IT THAT MIGHT WOULD BE ABLE TO ACCOMMODATE THE VEHICLES THAT ARE OLDER, NOT IN BAD SHAPE. THEY'RE JUST OLDER VEHICLES. SO THAT'S WHY I'M BRINGING THIS FORWARD TO SEE IF WE CAN TAKE A LOOK AT MAYBE AMENDING. I DID SPEAK TO THE TO THE CITY ATTORNEY AND THERE WERE A COUPLE OF SUGGESTIONS THAT HE SHARED THAT MAYBE I COULD OFFER HERE, BUT MAYBE JUST ELIMINATING THAT PART. BUT THESE ARE A COUPLE OF SUGGESTIONS THAT ARE HERE IF YOU TAKE A MINUTE AND LOOK AT THEM. THE FIRST ONE JUST SIMPLY ELIMINATES THAT LINE, WHICH HERE YOU ARE SORRY, WHICH WE WOULD JUST CROSS OUT THAT THE HOLDER, OWNER OR DRIVER COMMITS AN OFFENSE IF HE OPERATES A VEHICLE AS A PERMITTED TAXICAB IN THE CITY THAT IS OLDER THAN SIX YEARS. SO AND THAT THAT WOULD ELIMINATE THE AGE OF A VEHICLE BEING LIMITED TO TEN YEARS AND THAT'S THAT'S THAT'S WHAT WE'RE LOOKING AT IS WHAT WE HAVE IN PLACE HERE. AND THIS NOT ONLY AFFECTS BUT IT AFFECTS THE RESIDENTS. IT MAKES IT AFFECTS THE SMALL BUSINESS OWNER HERE. YOU KNOW, MOST OF US HERE DON'T TAKE A CAB ANYWHERE HERE, BUT YOU HAVE TO THINK ABOUT RESIDENTS WHO GO AND WORK AT TACO BELL, THOSE WHO NEED RIDES TO THE U-T-M-B. THESE SMALL CAB COMPANIES, LOCAL ONES HERE OFFER THOSE SERVICES TO OUR RESIDENTS. AND IT IS JUST CRITICALLY IMPORTANT. NOT ONLY THAT, BUT EMPLOYEES, SMALL EMPLOYEES, BUT THOSE EMPLOYEES RIGHT NOW ARE NOT WORKING BECAUSE AS OF JULY THE 1ST THAT ENDED, THEY CANNOT PUT THAT CAB ON THE STREET HERE BECAUSE IT IS TEN, 11 YEARS OLD. SO THOSE PEOPLE ARE OUT OF WORK. THOSE RESIDENTS CANNOT RECEIVE THE TRANSPORTATION, WHICH IS A CONTINUOUS YOU KNOW, THESE ARE PEOPLE WHO RIDE ALL THE TIME, EVERY DAY. SO THIS IS MY CONCERN HERE WITH THE ORDINANCE HERE. I HAVE A QUESTION FOR DON. SO HOW DOES THE CITY HAVE THE RIGHT TO SAY WHAT SOMEONE'S PROPERTY IS QUALIFIED OR NOT WHEN IT'S PASSING ALL STATE INSPECTIONS AND SO FORTH? HOW DO WE HAVE THE RIGHT TO SAY, WELL, IT'S OVER TEN YEARS, YOU CAN'T USE IT? IF I UNDERSTAND YOUR QUESTION, I'M NOT SURE YOU DO. I DO. WE HAVE SELF-RULE AUTHORITY THAT GIVES US THE AUTHORITY TO REGULATE THESE CABS. NOW WE MAKE THE RULES THAT WE THINK ARE APPROPRIATE. THEY ARE DEVELOPED OVER TIME IN CONSULTATION. I THINK THESE RULES WERE DEVELOPED IN CONSULTATION WITH THE CAB COMPANIES, BUT ALL THE CAB COMPANIES HAVE A TASK FORCE LIKE 4 OR 5 YEARS AGO. WELL, I MEAN, I'VE HAD VEHICLES THAT ARE OVER TEN YEARS OLD THAT LOOK LIKE THEY WERE BRAND NEW AND HAD NO ISSUES AND SO FORTH. I THINK YOU RAISE A GREAT POINT AS TO WHY WE'RE REGULATING ANY OF THIS. RIGHT. AND THAT'S AND BRIAN HAS FOR QUITE A WHILE SAID QUESTIONED WHETHER WE SHOULD REGULATE CABS AT ALL. COUNCIL HAS CHOSEN TO CONTINUE THAT. AND THAT'S PERFECTLY FINE. IT'S EXPENSIVE. WE ARE SUBSIDIZING THE INSPECTIONS AND OPERATIONS OF CABS BECAUSE THEIR FEES DON'T COVER 100% OF OUR EXPENSES. WE SPEND A LOT OF MONEY REGULATING AND INSPECTING AND ENFORCING. WE JUST SAY YOU'RE REQUIRED TO HAVE APPROPRIATE STATE INSPECTIONS AND TAKE AWAY THE LIMIT ON HOW MANY. WE DON'T REGULATE UBER OR LYFT. RIGHT. THIS IS THE LAST BASTION OF THAT. IT'S TOTALLY COUNCIL'S CALL. YOU COULD CHANGE THIS TO 20 YEAR VEHICLES IF THAT'S YOUR DESIRE. THIS IS PURELY A EXPRESSION OF WHAT COUNCIL THOUGHT AT THE TIME IT PASSED. WE HAVE DAVID COLLINS AND DAVID FINKEL. BUT WHILE WE ARE NOT ALLOWED TO REGULATE UBER AND LYFT AND SO THEY'RE PRETTY MUCH FREE TO OPERATE FROM THE ON THE ISLAND, OFF THE ISLAND OR WHATEVER. BUT BY HAVING THESE CAB REGULATIONS, NEVER MIND THE FINE DETAIL, BUT DON'T WE PROTECT LOCAL BUSINESS? [03:20:06] BECAUSE IF WE REMOVE ALL REGULATION OF TAXIS, AREN'T DOES THAT OPEN THE MARKET TO TAKE CABS FROM OTHER CITIES TO OPERATE HERE? IT COULD. I MEAN, WE DON'T HAVE A LIMIT ON THE NUMBER OF OPERATORS IN GALVESTON. WE HAVE REQUIREMENTS TO BE AN OPERATOR IN GALVESTON. I THINK IF YOU RAISE THE AGE OF THE CABS, YOU'RE GOING TO HAVE THAT, TOO. SO IS IT TODAY? WHAT DO WE REQUIRE? WHAT KIND OF REGISTRATION DO WE REQUIRE? WHAT KEEPS A CAB COMPANY FROM JUST DECIDING TO OPERATE ON THE CAB OR OR TO CHOOSE CRUISE DAYS OR FESTIVAL DAYS OR SOMETHING TO COME DOWN AND OPERATE? IT'S STANDARD PROCEDURE THAT YOU CAN PICK UP IN YOUR TOWN AND DROP OFF ANYWHERE AND A PROCEDURE YOU CAN'T PICK UP IN ANOTHER TOWN AND COME AND THAT YOU'RE NOT PERMITTED IN THAT STANDARD. IN TEXAS CITY LA MARQUE LEAGUE CITY. ALVIN HOUSTON, PASADENA. PARDON ME, MARSHALL, BUT YOU SAY STANDARD. IS THAT LEGAL? IS THAT AN ORDINANCE? IS IT JUST KIND OF HOW IT WORKS IN THEIR ORDINANCE? SO THAT'S IF YOU HAVE TO HAVE AN OPERATING AUTHORITY IN THE CITY IN WHICH YOU'RE PICKING UP TO PICK PEOPLE UP. SO I AND EVERYBODY DOES THAT. EVERYBODY DOES THAT. I DON'T KNOW THAT I'D LIKE TO I CAN'T SPEAK KNOWLEDGEABLY TO THE THE QUESTIONS THAT SHARON IS RAISING, BUT I DON'T I DON'T KNOW THAT I'D LIKE TO SEE US ABANDON THAT ALTOGETHER. I JUST I JUST I HAVE A HARD TIME TELLING PEOPLE WHAT TO DO WITH THEIR CARS. RIGHT. I CAN'T DISAGREE WITH YOU ON THAT ONE. YEAH. DAVID FINKEL. SO I GUESS COUNCIL MEMBER LOUIS, I READ THROUGH BOTH OF THESE OPTIONS HERE. AND WHAT'S WHAT ARE WHAT'S THE MAJOR OBJECTIVE WITH MAKING THIS CHANGE? IS IT TO PROTECT LOCAL TAXI OPERATORS? IS IT TO ALLOW THEM GREATER FLEXIBILITY IN USAGE OF THEIR VEHICLES? IS IT TO REDUCE FINANCIAL BURDEN ON ENFORCEMENT? CAN YOU I'D KIND OF LIKE TO UNDERSTAND THIS BECAUSE IT SEEMS LIKE SOMEBODY JUST OFFERED UP THE OPPORTUNITY FOR US JUST TO ABANDON REGULATION IN ENTIRETY. AND I'D KIND OF LIKE TO UNDERSTAND. WELL, IT'S THE REASON IS BECAUSE MOST OF THESE ARE SMALL BUSINESSES. SO EXCEPT FOR ONE OF THEM. READY, SET, GO. BUT HE'S ALSO ON BOARD WITH US. HE CAN GO AND BUY A FLEET OF CABS IF HE CHOOSES TO. BUT YOUR SMALL BUSINESS PERSON WHO'S BEEN OPERATING HERE AND SERVICING THE RESIDENTS CANNOT DO THAT, BUT YET THEY CAN MAINTAIN THEIR CABS. THE CABS ARE IN GREAT SHAPE. THE RESIDENTS LOVE THEM. THEY FIT THEIR PHYSICAL CAPACITY. THAT MEANS IF IT'S CLOSER TO THE GROUND, THEY HAVE A LITTLE BIT MORE EXTRA WEIGHT ON THEM. SO IT. TAX. THE SMALL BUSINESS PERSON HERE WHO HAS BEEN ONE OF THEM HAS BEEN HERE FOR 80 YEARS WITHIN THE COMMUNITY. TROPICAL CALVES. SHE TAKES THEY THEY DO A LOT OF TRANSPORTING TO U-T-M-B. AND THE OTHER DAY THERE WAS ONE LADY WHO CALLED ME AND I EVEN CALLED THE MAYOR. SHE WAS TRYING TO GET TO TACO BELL, BUT SHE USES THAT CAB AND IT IS CONSISTENTLY. THAT'S RIGHT. AND IT DELIVERS HER AND IT PICKS HER UP. THE OTHER GENTLEMAN AND HE LIVED ON 15TH AND STRAND. HE SAID THE NEIGHBORHOOD GROCERY STORES CHARGE TOO MUCH. THEY TAKE ME TO MY GROCERY STORE, THEY WAIT, THEY TAKE ME HOME, AND THEN THEY TAKE ME TO MY YOUTUBE APPOINTMENT. AND THESE SERVICE RESIDENTS ACROSS THE ISLAND, NOT JUST IN DISTRICT ONE, ACROSS THE ISLAND. SO. SO OBVIOUSLY YOU'D BE IN FAVOR OF KEEPING REGULATION AND TIGHTENING UP IN THIS FAVOR. GOT IT. OR LOOSENING IT, RATHER, SO THAT IT PROVIDES GREATER FLEXIBILITY WITHIN THE WITHIN THE REGULATIONS. THAT'S THE MAIN CONCERN, JUST THE OPERATING AUTHORITY. IF WE JUST WENT TO WHERE WE ISSUED OPERATING AUTHORITY AND DIDN'T DO CAB INSPECTIONS AND ALL THAT STUFF. OH, THERE YOU GO. YEAH. I MEAN, AT SOME POINT WE'RE GOING TO RUN IT AND THEN IT'S GOING TO BE, WELL, MY CAB IS IN PRETTY GOOD SHAPE. I MEAN, I'VE BEEN HERE 15 YEARS. I'VE HEARD IT ALL. SO LET THE LET THE CLIENT TELL. DEMAND THAT THE QUALITY OF THE CAB WITHIN THE BOUNDS OF STATE INSPECTION. HOW DOES THAT HOW DOES THAT DIFFER FROM HOW DOES OPERATING AUTHORITY DIFFER THAN CURRENT LANGUAGE AS BEING PROPOSED? OPERATING AUTHORITY? THEY HAVE RULES TO FOLLOW. THEY HAVE THE INSURANCE REQUIREMENTS. THEY HAVE THE COLORED VEHICLE. THEY HAVE TO HAVE A METER THAT'S FUNCTIONAL. ALL THIS IS PART OF THE OPERATING AUTHORITY. SEE, RIGHT NOW WE'RE REGULATING WHAT THEY CAN CHARGE. THEY REGULATE WHAT THEY CHARGE. ALSO. AND I DON'T I STILL DON'T UNDERSTAND THAT I THINK THEY OUGHT TO BE ABLE TO SURGE PRICE AND DO ALL THESE OTHER THINGS LIKE UBER AND LYFT. DO. I THINK WE I THINK WE'RE HURTING THEM MORE THAN WE'RE HELPING THEM, BUT I DON'T UNDERSTAND IT COMPLETELY. SO I LEAVE IT TO THE OPERATORS AND WE'VE ALWAYS DEFERRED TO THEM. BUT, YOU KNOW, WE JUST CAN'T KEEP COMING IN HERE. AND EVERY TIME AN OPERATOR WANTS TO CHANGE SOMETHING, WE CHANGE THIS LITTLE PIECE AND THEN THIS LITTLE PIECE. [03:25:01] I MEAN, THAT TO ME IS INDICATIVE OF AN INDUSTRY THAT DOESN'T WANT TO BE REGULATED. AND I DON'T WANT TO SPEND TAX MONEY TO REGULATE AN INDUSTRY THAT DOESN'T WANT TO BE REGULATED. I'M NOT FAMILIAR WITH WHAT YOU JUST SAID ABOUT SOMEBODY COMING IN AND PICKING. I'VE ONLY BEEN HERE. WHAT? RIGHT. SO I'M NOT FAMILIAR WITH THE HISTORY THAT YOU'RE SPEAKING OF, BUT I AM FAMILIAR WITH RESIDENTS ACROSS THE ISLAND AND THEIR NEEDS. BUT NOW ON THE METER. I TALKED TO MOE THE OTHER DAY AND I THOUGHT HE WAS HERE, BUT HE'S PROBABLY LEFT. AND HE SAID THAT'S A CHALLENGE TO DO IN THESE VERY NEW CARS PUTTING THAT METER IN. I AGREE. I AGREE. I MEAN, AS WE'VE CHANGED ORDINANCES TO FIT CERTAIN THINGS, YOU KNOW, WE'RE GETTING MORE TOURISTS IN FOR THE SHIPS. THOSE TAXI CABS ARE GOING THEY'RE MOSTLY BECAUSE THEY'RE GOING TO MAKE MORE MONEY. IT LIMITS THE RESOURCES THAT ARE AVAILABLE FOR OUR RESIDENTS. SO, YOU KNOW, I DON'T KNOW ANYTHING ABOUT A CAB. LIKE I SAID, I DON'T THINK ANYBODY IN HERE TAKES A CAB ANYWHERE. BUT HE SPECIFICALLY SAID TO IF YOU'RE GOING TO REQUIRE THE METERS AND IT'S TOUGHER TO PUT A METER IN A VERY NEW CAR. IT IS. THAT'S THAT'S TO ME IS INDICATIVE AGAIN OF WHY WHY ARE WE DOING THIS. YEAH I'D RATHER SORRY MIKE. MIKE HAD HIS HAND UP HERE. WHEN WAS THE LAST TIME THAT THIS BOARD OR THE COUNCIL MADE A CHANGE TO THIS ORDINANCE? LAST YEAR. AND WHAT WAS THAT REGARDING RAISED THEIR AVAILABLE? WELL, YEAH, THAT'S JUST THE RAISED RATE THING. BUT OTHER THAN THAT, WHEN WE MET WITH THE CAB COMPANIES WHEN WE DID THAT, WE DON'T CHANGE ANYTHING WITHOUT TALKING TO THE CAB COMPANIES BECAUSE AGAIN, WE DO THIS AT THEIR BEHEST. THIS IS NOT SOMETHING THE CITIZENS OF GALVESTON ARE REQUESTING. IT'S SOMETHING THE CAB COMPANIES REQUEST, RIGHT? NO, AND I UNDERSTAND. SO SO THE RATE IS ONE THING, BUT WE HAVE NEVER MANIPULATED KNOW AGES OR WHAT WE TRY TO DO IS FOLLOW WHAT ALL THE OTHER CITIES DO. SO THAT WAY IT DOESN'T PUT US OUT THERE IN A PRECARIOUS OR LIBELOUS SITUATION. I'VE TALKED WITH COUNCILWOMAN LOUIS AND I HAVE TALKED ABOUT THIS A LOT AND AND APPRECIATE HER BRINGING THIS FORWARD. I KNOW IT'S IMPACTS MANY PEOPLE THAT IN THE ISLAND HERE MY MY ONE CONCERN IS WHATEVER CHANGE WE MAKE I DON'T WE NEED TO MAKE IT WHERE IT APPLIES TO EVERYBODY, NOT JUST ONE PARTICULAR ENTITY OR ORGANIZATION OR CAB COMPANY. IT NEEDS TO BE ACROSS THE BOARD, APPLY TO EVERYBODY. THE OTHER COMMENT I'M GOING TO MAKE IS, AND THIS IS A QUESTION, BUTCH, MAYBE TO YOU OR BRIAN, I ASSUME THERE'S CAB COMPANIES OUT THERE THAT ARE PURCHASING NEW VEHICLES TO TO MEET THESE GUIDELINES, IS THAT CORRECT? DURING THE PANDEMIC, WE WERE LAX IN OUR ENFORCEMENT TO ALLOW THE SMALL COMPANIES TO. CONTINUE TO TO TO MAINTAIN COURSE. SO LAST YEAR DURING THEIR INSPECTION, WE TOLD EVERY ONE OF THEM, LOOK, NEXT YEAR THE TEN YEAR RULE IS GOING TO BE ENFORCED AGAIN. SO I GAVE THEM A WHOLE YEAR TO PREPARE FOR THIS AND READY SET GOAL WAS WAS PREPARED FOR IT. YELLOW CAB WAS PREPARED FOR IT. THEY HAD SOME CARS THEY HAD TO TAKE OFFLINE BECAUSE THEY WEREN'T THEY DIDN'T QUALIFY. SO THEY KNEW EVERY ONE OF THEM KNEW THAT THEY HAD A YEAR TO DETERMINE HOW THEY WERE GOING TO REPLACE THE CARS THAT WEREN'T BUSINESS YOU CAN'T REPLACE. SO AGAIN, AND I DON'T KNOW WHY WE CARE. HOW ARE WE DOING? I DON'T KNOW WHY WE CARE WHAT THEY CHARGE. I DON'T KNOW WHY WE CARE ANY OF THIS. THAT'S WHY I AGREE WITH THAT. I DON'T KNOW WHY BUTCHERS IN THE CAB BUSINESS. RIGHT IN THE CAB BUSINESS. SPEND MORE TIME ON THE LINKS. THEY SHOULD REGISTER. WE LIKE THEM TO REGISTER. BUT WHEN IT COMES TO THEIR CARS AND HOW THEY OPERATE THEIR BUSINESS, WHO ARE WE TO TELL THEM EXACTLY? LET LET LET THE MARKET DICTATE ALL THAT STUFF DONE. IF YOU WANT A QUICK FIX TO ADDRESS MISS LEWIS'S IMMEDIATE CONCERN, WE CAN CHANGE THE NUMBER FROM TEN YEARS TO 15 YEARS. WHATEVER. BUT IF YOU WANT A MORE COMPREHENSIVE EVALUATION OF WHAT WE'RE DOING WITH CABS, IT'S IT'S GOING TO TAKE A LOT MORE DISCUSSION. LET'S REMOVE THE YEAR. LET'S I WOULD TELL YOU, IF I CAME IN HERE EVERY TIME SOMEBODY REQUESTING AN EXCEPTION TO THE RULE OR SOMETHING ELSE, WE'D BE ON THE AGENDA QUITE A BIT. THAT'S WHY I THINK IT'S TIME TO GET OUT OF THIS. HOW EASY WOULD IT BE TO GUT THAT ORDINANCE TO TO JUST WITH FOUR VOTES? YOU CAN ELIMINATE THE WHOLE THING. NO, NO, NO. BUT BUT I THINK YOU DO WANT THEM TO ACTUALLY REGISTER AND JUST KNOW THAT THEY'RE OPERATING AS A CAB COMPANY. OR DO YOU EVEN NEED THAT? I DON'T KNOW. WELL, YOU'RE NOT GOING TO REGULATE THEM. I'M NOT EVEN SURE YOU NEED TO REGISTER. OKAY. THAT'S EVEN BETTER. MY CONCERN IS, IS IS PROTECTION PROTECTING THE LOCAL COMPANIES. I JUST ASSUMED LOCAL OPERATORS OPERATED HERE AND THEY DIDN'T GET SWAMPED BY OFF ISLAND COMPANIES ON. [03:30:03] LIKE I SAY, IT'S ALREADY HAPPENED WITH UBER AND LYFT FOR THE MOST PART, EXCEPT FOR THESE LITTLE LITTLE BITS. NOW WE COULD REQUIRE THEM LIKE WE DO OUR RECORDS. THEY HAVE TO HAVE A BRICK AND MORTAR, YOU KNOW, WE COULD REQUIRE THEM TO HAVE A GALVESTON ADDRESS STATING THEIR CARS. OH, I AGREE. WE SHOULDN'T BE DICTATING THEIR RATES, THEIR CARS, ANY OF THIS STUFF. YOU KNOW, MAKE SURE THEY HAVE INSURANCE, THINGS LIKE THAT. I MEAN, YOU KNOW, THEY'VE GOT TO HAVE THAT TO HAVE THEIR CAR INSPECTED. I DON'T EVEN KNOW IF WE NEED IF WE'RE GOING TO DEREGULATE THEM. I'M NOT EVEN SURE WE NEED TO BE IN THAT BUSINESS. MAYBE NOT. I MEAN, YOU KNOW, WE YOU KNOW, IT'S IT JUST FOR THE COUNCILS. I WAS ON COUNCIL WHEN UBER AND LYFT CAME. WE TRIED TO REGULATE UBER AND LYFT WITH THE SAME GUIDELINES THAT WERE APPLIED TO TAXI CABS. UBER AND LYFT PUSHED BACK UNBELIEVABLY. THEY WENT TO THE STATE LEGISLATURE. THEY LOBBIED UP THERE AND THEY GOT THE RULES PASSED THAT WE COULDN'T TOUCH. UBER AND LYFT DO BACKGROUND CHECKS EXCUSE ME, COULDN'T EVEN DO BACKGROUND CHECKS. RIGHT? COULDN'T EVEN DO BACKGROUND CHECKS ON UBER AND LYFT. SO THAT'S WHERE WE ARE. IF THEY'RE UNREGULATED AND UBER AND LYFT IS UNREGULATED, I'M NOT SURE I'VE BEEN HERE. I'VE HAD PEOPLE THAT HAVE THAT HAVE PHYSICAL CONDITIONS AND THAT OUR RULES PROHIBIT THEM FROM DRIVING A CAB. THEY WANT US TO WAIVE THOSE. WE'VE HAD PEOPLE WITH BAD CRIMINAL HISTORIES THAT WANTED TO OPERATE A CAB. OUR RULES PROHIBIT THAT. IF WE START COMING IN HERE AND MAKING EVERY CHANGE OR EXCEPTIONS AND SOME OF THESE PEOPLE, ONE OF THEM I WOULD BE GLAD TO GET IN A CAR WITH. BUT OUR RULES, I MEAN, WE HAVE MAYBE THE NEXT GUY ISN'T. SO THESE RULES ARE HARD TO FIT. AND IF WE START CHANGING THESE RULES EVERY TIME SOMEBODY WANTS BECAUSE THERE'S SO MANY VARIABLES, I JUST THINK THAT WE'VE WE'VE SURPASSED THE NEED FOR THIS. BUT THAT'S JUST MY OPINION. STOP DOING IT. ALL RIGHT. LET'S JUST ONE LAST THING. I DON'T I GUESS I HAVE A HARD PROBLEM, A CHALLENGE WITH THE LIMITATION OF SAYING IF SOMEBODY COMES IN HERE TO CHANGE A RULE BECAUSE WE AMEND IT ALL THE TIME. I AGREE. AND THAT'S WHEN I'M ASKING TO DO NOT TO CHANGE A RULE TO LOOK AND AMEND. IF WE CAN READ IT, MAYBE DELETE THAT PART AND THAT AND THAT WOULD NOT TO CHANGE THE RULES, BUT TO AMEND IT. BUT WHY DO YOU WANT THE REST OF THE RULES IN PLACE? BECAUSE IT PROTECTS THE PEOPLE. I'M NOT ASKING YOU TO DEREGULATE CATS, PROTECT FOOD. DON'T THEY HAVE TO BE FINGERPRINTED? THE CAB DRIVERS PROTECTS THE CLIENTS. YES. YES. IN A WAY THAT UBER AND LYFT ARE NOT RIGHT NOW. EXACTLY. YEAH. SO THOSE THINGS PROTECT IT DOES GIVE THEM A MARKETING NICHE. YES. THE TAXPAYERS ARE SUBSIDIZING THAT NICHE. YES. YEAH. RIGHT NOW, THE CAB COMPANIES, THEY HAVE TO GO. THOSE DRIVERS HAVE TO UNDERGO A BACKGROUND, A CRIMINAL AND BACKGROUND CHECK. UBER DOESN'T HAVE TO DO THAT. IT I'M GOING TO RECOMMEND WE TAKE BRIAN'S APPROACH, CHANGE THE DATE QUICKLY FROM 10 TO 15 YEARS OR SOMETHING LIKE THAT TO REMOVE THIS CURRENT QUESTION AND THEN DO A REVIEW OF THIS ORDINANCE AND OUR APPROACH TO REGULATION OF CAB COMPANIES TO SEE WHAT, IF ANY, WE NEED TO BE DOING GOING FORWARD. YEAH, THAT SOUNDS GOOD. I WOULD TELL YOU, WE GET ASKED FOR EXCEPTIONS NOT I WOULDN'T SAY FREQUENTLY, BUT A LOT SINCE I'VE BEEN HERE FROM PEOPLE THAT, HEY, I GOT I GOT DWI OR I GOT THIS OR I GOT THAT, CAN'T YOU? I'M A NICE GUY. I'M CLEANED UP. CAN'T YOU GIVE ME AN EXCEPTION ON GOLF CARTS? YEAH, EXACTLY. AND YOU KNOW, SOME OF THESE ARE LEGITIMATE. I JUST FEEL TERRIBLE BECAUSE I'M LIKE, I HAVE TO FOLLOW THE RULE, BUT I'M. AND, YOU KNOW, THEY'LL POINT OUT TO ME, WELL, ANYBODY CAN PULL UP IN AN UBER AND DO THIS. AND I SAID, I CAN'T ARGUE THAT MAYBE WE NEED A DEEPER DIVE WITH THE CAB OPERATORS. I AGREE. BUT BUT SOLVE THIS TEN YEAR PROBLEM. RIGHT. BUT ALSO, JUST DON'T WANT TO KEEP SPENDING PUBLIC MONEY TO SUBSIDIZE A VERY SMALL GROUP OF BUSINESSES. OKAY. WE NEED TO UNDERSTAND WHAT THAT EXPENSE IS. YEAH, WE CAN DO THAT. DON'T HAVE ANY OF THAT LANGUAGE THAT COUNCIL MEMBER LEWIS OFFERED. I MEAN, A SIMPLE CHANGE LIKE WHAT HAS ALREADY BEEN GONE THROUGH LEGAL CORRECT ABOUT THIS IS WHAT I CAME UP WITH ON THE FLY ON THE FLY. AND I CAN BRING THIS BACK FOR COUNCIL'S ACTION. LET'S DO THAT. WOULD DON WOULD YOU WORK WITH COUNCILWOMAN LOUIS? LET'S BRING BACK TO AN ACTION ITEM ON ADDRESSING THIS PROBLEM RIGHT NOW. AND THEN WE'LL WE'LL COME BACK AND THEN WATCH. CAB COMPANIES ARE OPERATING RIGHT NOW. YELLOW CAB AND READY, SET, GO. SO TROPICAL IS NOT EVEN OPERATING RIGHT NOW. THEY THEY ARE THEY RECENTLY TURNED IN THEIR OPERATING AUTHORITY BECAUSE MORE COMPETITION IS THE ONLY ONE THAT'S NOT OPERATIONAL, IS BUSY BECAUSE THEIR CARS ARE TOO OLD. I THINK WE UNDERSTAND WHAT NEEDS TO HAPPEN HERE IN THE SHORT RIGHT. AND NOT ONLY THAT, I MENTIONED THE SMALL BUSINESS OWNER WHO USES THAT A VAN AND HER VAN WILL BE THREE YEARS, WILL BE TEN YEARS OLD IN THREE YEARS. SO THAT'S GOING TO KNOCK HER OUT. SO THIS IS I MEAN, WE NEED TO STOP AND LOOK AT IT. I DON'T KNOW WHY WE CARE. [03:35:01] TAKE AWAY THE YEARS. DO NOT KNOW WHY I'M HERE. YOU KNOW, PERSONALLY, I THINK WE JUST OUGHT TO HEAD TOWARD DEREGULATION AND PULLED UP THAT I DIDN'T THINK IT WAS SAFE OR I DIDN'T WANT TO GET IN. I WOULDN'T GET IN THE CAB. I DON'T KNOW WHY WE'RE REGULATING THIS, BUT THERE'S BEEN SOME CABS IN NEW YORK WHERE I OPENED THE DOOR JUST REHASHING. NO. ALL RIGHT, SHARON, IF YOU'LL WORK WITH DON ON THIS, IT WILL HAVE IT AS AN ACTION ITEM COMING BACK FOR OUR NEXT MEETING THEN. OKAY. OKAY, THEN. OKAY. VERY GOOD. THANK YOU VERY MUCH. APPRECIATE IT. IT IS NOW. WELL, WE'RE WHIPPING RIGHT ALONG. 12:35 P.M.. THANK YOU, BUTCH. THANK YOU. [4. EXECUTIVE SESSION] IT IS 12:35 P.M. WE ARE MOVING INTO EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5510.074. PERSONNEL MATTERS TO DELIBERATE THE APPOINTMENT, EMPLOYMENT EVALUATION, REASSIGNMENT OR DUTIES OF A PUBLIC OFFICER OF A OR EMPLOYEE CITY COUNCIL APPOINTEE EVALUATIONS, SPECIFICALLY CITY MANAGER, CITY ATTORNEY, CITY AUDITOR AND CITY SECRETARY. CAN WE GET WHAT WE'RE DOING? THIS WOULD BE THE PLEASURE OF COUNCIL TO EAT WHILE WE'RE DOING THAT. BRIAN YOU CAN TO NOT EAT LUNCH. OKAY. IT IS. 2:51 P.M.. WE HAVE NOW RECONVENED IN OPEN SESSION FROM OUR EXECUTIVE SESSION. [5. RECESS MEETING (10 Min)] WE HAVE GONE THROUGH EVERYTHING ON OUR WORKSHOP AGENDA. WE ARE ADJOURNED. WE WILL RECONVENE FOR OUR REGULAR CITY COUNCIL MEMBER MEMBER MEETING IN TEN MINUTES IN COUNCIL CHAMBERS. THANK YOU. JUST FOR THE SAKE OF IT, IF WE COULD, PLEASE. [6. RECONVENE MEETING (Council Chambers)] MAYOR BROWN. PRESENT MAYOR PRO TEM COLLINS. PRESENT. COUNCIL MEMBER LOUIS. PRESENT. COUNCIL MEMBER FINKLE. PRESENT. COUNCIL MEMBER BOUVIER. HERE. COUNCIL MEMBER. LISTOWSKI. HERE. COUNCIL MEMBER. ROBB. HERE. OF ALL OF OUR COUNCIL MEMBERS, PRESENT STAFF IS WITH US HERE. AND OUR FIRST ORDER OF BUSINESS IS PUBLIC COMMENT OF AGENDA NON AGENDA ITEMS. [7. PUBLIC COMMENT] THIS IS FOR THREE MINUTES FOR PUBLIC COMMENT. I DO HAVE SOME FORMS HERE. CHARLOTTE O'ROURKE. CHARLOTTE LIKE YOUR PINK. CHARLOTTE. VERY NICE. GOOD AFTERNOON. COUNCIL. MY NAME IS CHARLOTTE O'ROURKE. I LIVE IN GALVESTON IN THE EAST END HISTORIC DISTRICT. I WANTED TO TALK A LITTLE BIT TODAY ABOUT THE PORT REVENUE BONDS. AND WHAT I WAS HOPING IS YOU WENT THROUGH THE REVENUE BONDS THAT YOU WOULD GET SOME CLARIFICATION ON SOME ISSUES THAT I SEE AT THE PORT. ONE OF THOSE ISSUES HAS TO DO WITH BUDGETS, WHICH YOU DID A VERY GOOD JOB TODAY ON YOUR BUDGET, AND I'D LIKE TO SEE THAT TRANSFER OVER TO THE PORT SO THAT WHEN THEY DO A CAPITAL BUDGET, WHEN THEY MAKE MAJOR CHANGES LIKE DOING CRUISE TERMINAL 16, THAT THEY AMEND THEIR BUDGET AND PUT THAT IN THERE. AND THEN YOU'RE ABLE TO SEE AS IT PROGRESSES HOW MUCH MONEY THEY SPEND. THE OTHER THING I WOULD LIKE TO ADDRESS IS HOPEFULLY YOU CAN HELP THEM WITH THEIR CHECK REGISTER REPORT. YOUR CITY MANAGER SAYS WHEN HE FIRST GOT HERE, YOU COULDN'T THEY COULDN'T BALANCE THE CHECKBOOK. AND I SEE THE SAME THING AT THE PORT AND THAT I SEE ISSUES IN PROBLEMS WITH THEIR CHECK REGISTER AND WHETHER THEY SPENT 60 MILLION OR 65 MILLION. I'M NOT REALLY SURE BASED ON THAT REPORT, WHICH IS CORRECT. YOU NEED TO KNOW AND WHATEVER THE THE FLAWS IN THAT REPORT, YOU NEED TO SQUASH THEM SO THAT YOU SEE EXACTLY HOW MUCH WAS SPENT IN 2022. THE OTHER THING IS IT'S HARD TO GET RECORDS, SO I PUT IN AN OPEN RECORDS REQUEST OVER TEN DAYS AGO TRYING TO GET THE PIER 16 ENGINEERING REPORT. THAT GIVES COST BECAUSE AS YOU APPROVE THIS 50 MILLION, THE PORT'S GOING TO BE COMING BACK TO YOU FOR ADDITIONAL FUNDS. AND I WANTED TO KNOW, BASIC BALLPARK FIGURE THAT IF THEY DID A BUDGET, I WOULDN'T EVEN HAVE TO ASK FOR THAT. IT WOULD BE THERE. AND THEY HAVE NOT GIVEN ME ANY, YOU KNOW, THAT THEY'RE BLOCKING IT OR NOT BLOCKING IT. I DON'T KNOW. THEY JUST HAVE NOT ANSWERED. THE OTHER THING THAT I WOULD LIKE TO TALK ABOUT IS AT THE END OF THE DAY, I WOULD LIKE THE PORT TO BE ABLE TO TELL THE COMMUNITY IF YOU GAVE THEM NO MONEY, NOT A PENNY AND WAITED TILL THE END OF THE YEAR, AT THE END OF THE YEAR, HOW MUCH MONEY WOULD THEY HAVE IN THE BANK THAT WAS NOT ALREADY RESTRICTED INTERNALLY OR EXTERNALLY? AND THE REASON I'M WANTING TO KNOW THAT IS COULD THEY WAIT AND SAVE MONEY BY GIVING ALL OF THE REQUESTS AT ONE TIME BECAUSE IT'S VERY EXPENSIVE TO GO OUT FOR [03:40:04] BONDS. AND SO THAT'S BASICALLY WHAT I WANTED TO HIT YOU UP WITH. AND I KNOW THAT YOU DO A GREAT JOB. AS I SAID, YOUR BUDGET WAS AWESOME, THAT YOU CAN BALANCE YOUR CHECKBOOK. THUMBS UP. PLEASE HELP THE PORT DO THE SAME THING. THANK YOU. THANK YOU, CHARLOTTE. MARY BRANHAM. MARY. GOOD AFTERNOON. GOOD AFTERNOON, MAYOR AND CITY COUNCIL. I SPOKE WITH YOU THIS MORNING. I AM. I'VE HAD YOU PUT THIS ON YOUR DESK THAT YOU ALL ASKED AT THE AT THE WORKSHOP THAT THIS GIVES YOU THE INFORMATION ON THE ON THE ON THE RECIPIENTS. I'M SHORT THE LAST TIME YOU NEED A MICROPHONE. THANK YOU, BRIAN. ANYWAY, THIS THIS GIVES YOU THE PERTINENT INFORMATION THAT THE THAT THE BOARD PUT TOGETHER FOR THE FOR THE AWARDING OF THE FUNDS. AND THIS GIVES YOU THE HISTORY OF WHAT THE THE APPLICANTS HAD RECEIVED THE PRIOR FUNDING YEAR OF 21 TO 23. AND THE ONLY OTHER COMMENTS WAS I HOPE THAT THE CITY WILL THE COUNCIL WILL APPROVE THE FUNDING FOR THE NEXT TERM AND ALSO ON THE ORDINANCE FOR THE THE PENALTIES SHOULD ONE NOT FOLLOW ALL THE RULES AND REGULATIONS. AND I THINK WITH MEMBER COLLINS OF WHAT HE SAID IS THAT I THINK IF WE CAN DO THIS AND THEY'RE TO BE EXECUTED NEXT WEEK, THE WE CAN WORK ON EVEN UPDATING AND AND CLARIFYING EVEN MORE OF THE ORDINANCE AND PUT IN SPECIFICS WITH RESEARCH AND YOUR INPUT. THAT'S ALL I HAVE. THANK YOU, MARY, AND THANK YOU TO YOUR COMMITTEE. APPRECIATE IT. THANK YOU. ALL RIGHT. THANK YOU. ANYONE ELSE IN THE AUDIENCE? I DON'T SEE ANYONE ELSE OUT THERE THAT WOULD LIKE TO SPEAK. SO I'M CLOSING THE PUBLIC HEARING AT THIS POINT OR THE PUBLIC COMMENT? NO. YEAH, WE DID GOOD WORK, BARBARA. VERY GOOD. LET'S MOVE TO ITEM 88A ACTION ITEMS, PLEASE. [8.A. Consider A Motion To Propose A Property Tax Rate Of $0.408850 Per $100 Of Taxable Value For Tax Year 2023 And Call A Public Hearing On September 14, 2023.] ITEM EIGHT EIGHT. CONSIDER A MOTION TO PROPOSE A PROPERTY TAX RATE OF 0.408850 PER $100 OF TAXABLE VALUE FOR THE TAX YEAR 2023 AND CALL A PUBLIC HEARING ON SEPTEMBER 14TH, 2023. THANK YOU, NELLIE. WE DISCUSSED THIS AT OUR BUDGET MEETING THIS MORNING AND WORKSHOP. I'M GOING TO MAKE A MOTION FOR THE CONSIDERATION. I'M GOING TO MAKE A MOTION TO PROPOSE A PROPERTY TAX RATE OF 0.408850 PER $100 OF TAXABLE VALUE FOR TAX YEAR 2023 AND CALL FOR A PUBLIC HEARING ON SEPTEMBER 14TH OF 2023. SECOND, THAT MOTION, WE HAVE A SECOND BY COUNCILMAN COLLINS. ANY DISCUSSION COUNCIL, PLEASE CAST YOUR VOTES ON THAT. I DIDN'T. THERE WE GO. SORRY ABOUT THAT. IT JUST CAME OFF. THAT IS UNANIMOUSLY APPROVED. THANK YOU. ITEM EIGHT B, PLEASE. [8.B. Consider A Motion To Call A Public Hearing On September 14, 2023 On The FY 2024 Proposed Budget As Required By State Law.] ITEM EIGHT B, CONSIDER A MOTION TO CALL A PUBLIC HEARING ON SEPTEMBER 14TH, 2023, ON THE FISCAL YEAR 2024 PROPOSED BUDGET AS REQUIRED BY STATE LAW. VERY GOOD. WE DISCUSSED THIS AGAIN THIS MORNING. I'M GOING TO MAKE A MOTION TO TO CALL FOR A PUBLIC HEARING ON SEPTEMBER 14TH, 2023, ON THE FISCAL YEAR 2024 PROPOSED BUDGET AS REQUIRED BY STATE LAW. SECOND, WE HAVE A SECOND BY COUNCILWOMAN LEWIS. ANY DISCUSSION? PLEASE CAST YOUR VOTES. OKAY. OKAY. YELLOW. WE BROKE IT OUT. I GET IT. WELL, THAT WAS A GOOD ONE. I AIN'T REALLY GETTING GOOD AT THOSE JOKES NOW. I KNOW. PUT IT IN AGAIN. THE MOTION. SURE. SO HERE WE GO. ALL RIGHT. THERE WE ARE. THERE YOU GO. THAT IS UNANIMOUSLY APPROVED. THANK YOU. ITEM EIGHT C, PLEASE NELLIE. [8.C. Consider For Approval Authorizing The City Manager To Execute The Letter To Release Federally Obligated Land, Hereby Releasing 26.3 Acres Of Airport Property, Identified As Tract C, From The Conditions, Reservations, And Restrictions As Contained In The Instrument Of Transfer From The United States Of America To The City Of Galveston And Approve The Sell Of The Property Through A Sealed Bid Or At A Public Auction For The Full-Appraised Price Range And Upon Approval As To Form By The City Attorney (M. Shahan).] ITEM EIGHT C, CONSIDER FOR APPROVAL AUTHORIZING THE CITY MANAGER TO EXECUTE THE LETTER TO RELEASE FEDERALLY OBLIGATED LAND. HEREBY RELEASING 26.3 ACRES OF AIRPORT PROPERTY IDENTIFIED AS TRACK C FROM THE CONDITIONS, RESERVATIONS AND RESTRICTIONS AS CONTAINED IN THE INSTRUMENT OF TRANSFER FROM THE UNITED STATES OF AMERICA TO THE CITY OF GALVESTON AND APPROVE THE SALE OF PROPERTY THROUGH A SEALED BID OR AT A PUBLIC AUCTION FOR THE FULL APPRAISED PRICE [03:45:10] RANGE AND UPON APPROVAL AS TO FORM BY THE CITY ATTORNEY. WE HAD A DISCUSSION THIS MORNING ON THIS PARTICULAR ITEM. I WOULD ENTERTAIN A MOTION FROM COUNCIL. JOHN, I'VE GOT A QUESTION, BUT I'LL WAIT TILL WE HAVE DISCUSSION. I MOVE APPROVAL OF THIS ITEM. I HAVE A MOTION FOR APPROVAL. COUNCILMAN COLLINS, IS THERE A SECOND? I'LL SECOND. SECOND. COUNCILMAN BOUVIER DISCUSSION. JOHN, I JUST WANT SOME CLARIFICATION. IN THE IN THE WORKSHOP EARLIER, I THINK I HEARD CORRECTLY THAT THE FUNDS HAVE TO BE USED FOR A REVENUE PRODUCING EXPENSE AND THAT WAS AT THE REQUEST OR THE OF THE FAA DIRECTION. BUT I DON'T SEE THAT IN THIS LETTER. I JUST WANT TO GET SOME CLARITY, IF I HEARD THAT RIGHT OR IF THAT'S ACTUALLY THE CASE. I KNOW WHAT YOU KNOW, BECAUSE THAT'S WHAT MIKE HAS TOLD ME AS WELL. BUT WE CAN CERTAINLY GET THAT BACK TO YOU AND TO FIND OUT. I JUST DON'T SEE THAT IN THIS LETTER AT ALL. OKAY. NO, I TOTALLY UNDERSTAND. I THINK IT'S A GOOD IDEA TO PROBABLY USE THAT AS SOMETHING THAT PRODUCES REVENUE. BUT I WANT TO MAKE SURE THAT WHAT WE HEAR. WORKSHOP, CORRECT? I KNOW THAT WAS I REMEMBER THAT BEING THE REQUIREMENT WHEN WE BOUGHT THE FIRST TWO PARCELS. A AND B THAT WE'VE TALKED ABOUT. BUT LET ME VERIFY EVERYTHING WITH YOU. FOR YOU. WHEN WE BOUGHT THE FIRST TWO PARCELS, THOUGH. THAT THAT MONEY WENT TO THE AIRPORT. AND YOU'RE SAYING THAT THAT WAS THAT THAT WAS EARMARKED FOR REVENUE? THAT'S CORRECT. THAT'S CORRECT. OKAY. YEAH, IF YOU CAN GET. YOU BET. YES, SIR. THAT'D BE GREAT. YES, MA'AM. COUNCILWOMAN. ROBB. SO THE THE WAY THAT THIS WAS JUST READ, IT DIDN'T SOUND LIKE THE APPRAISED VALUE WOULD BE THE STARTING POINT. THAT'S CORRECT. BUT IT DIDN'T SOUND LIKE THAT. I KNOW THAT'S THE INTENTION, BUT I GO TO MY AIRPORT PEOPLE, BECAUSE DAN AND DAN AND MIKE ARE THE AIRPORT PEOPLE. I'M SORRY I MISSED THE QUESTION WHEN I WAS WALKING AWAY THAT IT WAS RED. IT DIDN'T SOUND LIKE THE APPRAISAL POINT IS THE MINIMUM. IT WOULD BE THE MINIMUM. THAT'S THE LEAST WE COULD TAKE. AND THAT DOES SAY IT IN THE FAA LETTER. IT DOES. THAT'S THE LEAST WE COULD TAKE. BUT THE WAY OUR WHAT WE'RE VOTING ON DIDN'T SOUND THAT WAY. YEAH, THAT'S THAT'S THE WAY FAA DOES. THAT'S WHAT WE ENDED UP DOING. ON THE OTHER PROPERTY, IF WE BOUGHT IT, THE CITY BOUGHT IT, WE COULD BUY IT FOR THE APPRAISED VALUE WITHOUT ANY FURTHER FAA APPROVALS. OKAY. AND WHAT? OTHERWISE WE PUT IT UP FOR AUCTION. PUBLIC AUCTION. VERY GOOD. DID YOU WALK OVER HERE TO ANSWER MY QUESTION? WHAT WAS YOUR QUESTION, SIR? MY QUESTION WAS IN OUR WORKSHOP THIS MORNING. IT WAS SAID THAT THE MONEY THAT THE AIRPORT RECEIVED FROM THE SALE HAD TO BE USED FOR A REVENUE GENERATING PROJECT. THAT'S CORRECT. IT DOES NOT SAY THAT IN THE FAA LETTER. IT'S IN FAA RULES. THAT'S THE ONLY WAY THE MONEY CAN BE SPENT IS THE AIRPORT FOR AVIATION PURPOSES AND FOR REVENUE GENERATION. SO I DON'T KNOW IF THERE'S A COMMA AFTER THOSE TWO, BUT IT IS AN FAA RULES. WE JUST HAVE TO FOLLOW THEIR RULES. COULD YOU SEND ME WHATEVER, WHEREVER THAT IS? CLARIFICATION ON THAT BECAUSE I'M WITH YOU. I DON'T HAVE TO SPEND IT ON THAT. WE HAVE A LOT OF OTHER NEEDS OUT THERE. BUT I THINK THAT'S UNFORTUNATELY I THINK THAT'S THE CASE. I MEAN, PRETTY MUCH EVERYTHING WE DO AT THE AIRPORT IS FOR REVENUE GENERATION. I MEAN, EVERYTHING. I MEAN, I DON'T THINK YOU'D USE IT FOR. NO. WHAT COULD YOU USE IT FOR THE MATCH ON $6 MILLION PROJECT. IF IT'S IF IT GENERATES REVENUE? I WOULD THINK SO. YES. WELL BUT STRIPING STRIPING A RUNWAY DOESN'T DOESN'T I GUESS IT'S HOW FAR ARE YOU PUSH THE LINE OF GENERATING REVENUE. IF WE STRIPE THE RUNWAYS IT ALLOWS THE PLANES TO LAND WHICH CREATE REVENUE. YEAH. OKAY. AND THERE WAS A QUESTION I THOUGHT I HEARD RELATED TO THE FIRST PARCELS THAT WERE BOUGHT FROM THE AIRPORT THAT MONEY'S RESIDING. WELL I JUST ASKED IF THAT, IF THAT WAS YOU, IF THAT RESTRICTION WAS ON THERE AS TO AS WELL. ARE WE USING THAT FOR EXPENSES THAT ARE REVENUE PRODUCING THAT MONEY STILL SITTING IN RESERVES AT THE AIRPORT? THAT'S WHAT I THOUGHT. I JUST IT'S TO BUILD HANGARS. I WANT TO MAKE SURE THAT WE ARE REQUIRED TO USE THAT FOR REVENUE PRODUCING PROJECTS. SO IT IS. OUR CITY ATTORNEY IS CONFERRING A LETTER ADDRESSES YOUR. [03:50:08] YEAH, IT JUST SAYS AN FAA ELIGIBLE PROJECT. YEAH, IT DOESN'T SAY REVENUE GENERATION. RIGHT. AND LET'S MAKE SURE THERE'S NOT SOMETHING ELSE BURIED IN THE RULES IN SOME OTHER. YEAH, I MIGHT HAVE TO GO BACK AND LOOK AND SEE WHAT THE LAST LETTER SAID WHEN WE BOUGHT THE 5.5 ACRES, IT MAY BE DIFFERENT. YEAH, WE'LL FIND OUT. WE'LL VERIFY WHO AUTHORED THE LETTER AT THE FAA. THAT'S A GOOD CATCH AND WE'LL VERIFY. OKAY. JOHN, ARE YOU COMFORTABLE MOVING? YEAH. OH, YEAH, ABSOLUTELY. ALL RIGHT. THANK YOU. THAT'S SOUND GOOD. ANY FURTHER DISCUSSION? COUNCIL, WE HAVE A MOTION. AND A SECOND. PLEASE CAST YOUR VOTE. THAT IS UNANIMOUSLY APPROVED. ITEM EIGHT D, PLEASE. [8.D. Consider For Approval A Resolution Of The City Council Of The City Of Galveston, Texas, Distributing And Awarding Fiscal Year 2024 And Fiscal Year 2025 Hotel Occupancy Tax Revenues To Eligible Arts And Historic Preservation Organizations Under Multi-Year Agreements; Authorizing The City Manager To Execute Contracts With Such Recipients Upon Approval Of Those Contracts By The City Attorney; Directing The City Secretary To Send A Certified Copy Of The Resolution To The Park Board Of Trustees; Providing For Findings Of Fact And Providing For An Effective Date. (M. Jadidi)] ITEM EIGHT D CONSIDER FOR APPROVAL OF RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GALVESTON, TEXAS, DISTRIBUTING AND AWARDING FISCAL YEAR 2024 AND FISCAL YEAR 2025. HOTEL OCCUPANCY TAX REVENUES TO ELIGIBLE ARTS AND HISTORIC PRESERVATION ORGANIZATIONS UNDER MULTIYEAR AGREEMENTS AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACTS WITH SUCH RECIPIENTS. UPON APPROVAL OF THOSE CONTRACTS BY THE CITY ATTORNEY DIRECTING THE CITY SECRETARY TO SEND A CERTIFIED COPY OF THE RESOLUTION TO THE PARK BOARD OF TRUSTEES, PROVIDING FOR FINDINGS OF FACT AND PROVIDING FOR AN EFFECTIVE DATE. VERY GOOD. I'M GOING TO ENTERTAIN A MOTION ON THIS. I'D BE HAPPY TO MOVE APPROVAL OF THIS ITEM TO OPEN IT UP FOR DISCUSSION. I'M GOING TO. ALL RIGHT. WE HAVE A MOTION FOR APPROVAL OF THIS ITEM EIGHT D COUNCILMAN COLLINS, SECOND BY COUNCILMAN FINKLEY. LET'S OPEN IT UP TO DISCUSSION. MARIE. I HAVE A PROBLEM OF GALVESTON, THE FUNDING OF THE GALVESTON OWN FARMERS MARKET. I'M THOROUGHLY INTRIGUED THAT THEIR OPERATING BUDGET WOULD BE 754,000 HAVING ATTENDED IT, BUT AND THEREFORE THEY'RE ELIGIBLE FOR 25. BUT I DON'T SEE HOW. I JUST I HAVE AN ISSUE WITH IT. I'M GOING TO NEED A LITTLE MORE INFORMATION THAN THAT. IF YOU LOOK AT THE SCORES THAT THE COMMITTEE PUT TOGETHER, THEY HAVE A THAT WE DESCRIBED IN THE IN THE WORKSHOP THAT THEY HAVE A CLEAR METRIC AND A RUBRIC THAT THEY'RE SCORING ON. AND YOU'VE GOT A LOT OF OTHER ENTITIES THAT SCORED LOWER THAN THAT. HOW DO YOU JUSTIFY AN OBJECTION BASED UPON THEIR SCORES? COUNCILMAN SCORE ANYTHING IF YOU USE THAT NUMBER TO COME UP WITH 25% OF. WELL, THE I HAVE A PROBLEM WITH THAT RUBRIC AS WELL THAT MY MIC IS ON. SO WHAT YOU'RE CHECKING. YES, THANK YOU. I COULDN'T SEE THAT. YOU KNOW, IT'S ON I HAVE I HAVE SOME QUESTIONS ABOUT THE RUBRIC AS WELL BECAUSE WHEN WHEN YOU SAY IT'S THERE'S THERE IS AN OBJECTIVE RATING IN THE RUBRIC, BUT IT IS BASED ALMOST ENTIRELY FROM WHAT I CAN TELL ON THE SUBMISSION OF THE ORGANIZATION THAT THERE IS NO THERE IS NO OUTSIDE REVIEW OF THIS. THERE'S NO NOBODY DOES A SITE VISIT. NOBODY, NOBODY, NOBODY DOES ANY RESEARCH ON NUMBERS THAT AREN'T IN THE IN THE APPLICATION. SO AND THAT'S NOT JUST FOR THIS PARTICULAR ITEM THAT'S FOR ANY OF THEM. SO THE THE SCORES BY THEMSELVES ARE, I FIND AWFULLY SUBJECTIVE BECAUSE. THEY RANGE FROM THE 70S TO THE 90S. YOU KNOW, WHEN YOU LOOK AT SOMETHING LIKE KAVALA HAD AN 80 SCORE, I DON'T. HOW DID YOU GET AN 80 OUT OF THAT? THE KAVALA IS THE NAVAL MUSEUM IS IS OPERATING AT A MUCH A HIGHER LEVEL THAN IT HAS EVER OPERATED IN THE PAST. AN AMAZING NUMBER OF PEOPLE GO OUT THERE, THEY RAISE THEY JUST HAVE A LOT OF VISITATION, THEY RAISE A LOT OF MONEY. I'M NOT I'M NOT SAYING THEY DO OR THEY DON'T DESERVE THE $990,000. BUT BUT I I'M NOT SURE HOW YOU GET AN 80 FOR THAT. BUT THEN YOU GET A 77 FOR FRIENDS OF MOODY GARDENS, WHICH BY ITS CHARTER IS DESIGNED TO SEND LOCAL FOURTH GRADERS TO MOODY GARDENS TO PAY FOR THE THE COST OF LOCAL FOURTH GRADERS GOING TO MOODY GARDENS. I DON'T I DON'T SEE WHERE THERE'S ENOUGH VISITOR APPEAL IN THAT. AND I UNDERSTAND. COUNCILWOMAN ROBB QUESTIONS ABOUT THE VISITOR APPEAL OF THE FARMERS MARKET. I MIGHT MAKE THAT SAME ARGUMENT ABOUT THE OLEANDER SOCIETY OR, OR LILAC OR, YOU KNOW, A NUMBER OF THESE ORGANIZATIONS. I DON'T UNDERSTAND HOW WE DECIDED THEY HAVE THIS VISITOR APPEAL AND BY BY VISITOR APPEAL, WE'RE TALKING ABOUT BRINGING PEOPLE FROM OFF THE ISLAND TO VISIT. [03:55:03] WE'RE NOT JUST TALKING ABOUT LOOKS LIKE A GOOD THING FOR US TO GO DO THIS WEEKEND. WE'RE TALKING ABOUT SPENDING TOURISM DOLLARS, WHICH ARE IN THIS CASE DESIGNED TO ATTRACT MORE TOURISTS. THAT'S THAT'S THAT'S WHAT THESE DOLLARS ARE EARMARKED FOR BOTH HERE AND IN THE CVB. MIKEY. YEAH. SO MY WIFE AND I, WE VISIT FARMERS MARKETS EVERY TIME WE GO TO A DIFFERENT PLACE BECAUSE THEY HAVE DIFFERENT PRODUCTS THAT WE DON'T GET HERE. LIKE IF WE GO TO CAPE COD, WE WOULD GO THERE BECAUSE WE COULD GET PRESERVED CRANBERRIES OR WE COULD GET SOMETHING ALONG THE LINES OF OF WHAT CAPE COD REPRESENTS. SO WE SEEK THOSE OUT WHEN WE GO AND VISIT DIFFERENT AREAS. THEY ARE A KIND OF THE THE REPRESENTATIVE OF WHAT THE LOCAL MARKETS HAVE. THERE'S ALSO THEY HAVE CRAFTS, THEY HAVE DIFFERENT THINGS. THEY HAVE SPICE BLENDS, ALL KINDS OF STUFF THAT YOU CAN PACK IN YOUR BAG AND BRING THEM HOME. DONE IT MYSELF. AND I'M NOT I'M NOT ARGUING THAT ISN'T THAT ISN'T COMMON. AS I SAY, I DO DO IT MYSELF. MY MY ISSUE ISN'T THAT IT'S THE RUBRIC BY WHICH THESE NUMBERS ARE SET. HOW DO YOU KNOW THAT? I MEAN THAT WHEN YOU WHEN YOU LOOK AT GF TICKET SALES FOR DICKINS OR HOMESTORE, WHEN YOU LOOK AT THE GRANDS TICKET SALES, YOU KNOW, THEY'RE CAPTURING ZIP CODES. SO YOU HAVE SOME OBJECTIVE MEASURE FOR FOR THAT. BUT AS I MENTIONED THIS MORNING, THE BALLET DOESN'T OPERATE THAT WAY. SO THEY DON'T REALLY HAVE THOSE THOSE NUMBERS, BUT THEY APPEAR AT A LOT OF EVENTS. I MEAN, I'VE ALWAYS THOUGHT THAT THE ADVANTAGE OF FUNDING SO MANY VARIED ORGANIZATIONS WAS THAT IT CREATES SOMETHING OF A NET BASE FOR TOURISTS. THERE'S ALWAYS SOMETHING ELSE TO DO. IF YOU STAY AN EXTRA DAY, YOU KNOW, YOU MAY NOT HAVE TO BUY A TICKET TO IT OR IT MAY NOT BE SOMETHING YOU DO IN ADVANCE. IT MAY BE SOMETHING YOU DISCOVER IN THE HOTEL LOBBY THAT YOU CAN GO DO. SO I DON'T I DON'T OBJECT TO, YOU KNOW, SPREADING THIS THIS FUNDING AROUND. BUT I'M A LITTLE CONCERNED ABOUT BOTH THE NATURE OF DETERMINING WHAT THESE SCORES ARE OR WHAT THESE SCORES ARE BASED ON AND THEN HOW THAT GETS DIVIDED UP. AND I SIT WITH THIS COMMITTEE. I WASN'T AT THE MEETING WHERE THIS THE I MISSED THE FINAL MEETING WHERE THESE NUMBERS WERE SET. BUT I'VE DONE THIS FOR MORE THAN A COUPLE OF YEARS. WHAT HOW DOES THIS PERCENTAGE OF WHAT THEY REQUESTED TURN INTO WHAT THE BOARD APPROVES? IT DOESN'T APPEAR TO BE A DIRECT RESULT OF THE SCORE TIMES THE ANNUAL REQUEST OR WHATEVER. AND WHILE I'M WHILE I'M ON IT, I'LL I'LL SAY I ALSO THINK WE'RE OUT OF OUR LANE IN IN PROVIDING PROMOTIONAL MONEY FOR THESE ORGANIZATIONS. I DON'T WANT TO STOP DOING IT. I CERTAINLY DON'T WANT TO MAKE CHANGE TO THESE ORGANIZATIONS TODAY THAT THAT THAT WE'RE SO FAR DOWN THE ROAD AND THIS IS 24, 25 FUNDING, YOU KNOW, BUT I THINK WE NEED TO SERIOUSLY STEP BACK AND LOOK AT WHY WE'RE DOING THIS. THIS IS CVB'S JOB AND LORD KNOWS CVB NEXT COUPLE OF YEARS ARE GOING TO HAVE THE MONEY TO DO THIS KIND OF THING WITH A $3.3 MILLION PENNY THAT WE'RE REQUIRED TO GIVE THEM. SO ESSENTIALLY THE LAW SAYS WE HAVE TO SPEND $0.03 ON ADVERTISING. WE'RE SPENDING THREE AND SIX $0.08 ON ADVERTISING. I DON'T I DON'T NECESSARILY WANT TO JUST TURN AND THROW ALL OF THIS AT CULTURAL ARTS OR ALL OF IT AT HISTORIC PRESERVATION OR SOMETHING LIKE THAT. BUT WE NEED WE NEED TO TAKE A HARDER LOOK AT THAT. THAT'S KIND OF SECONDARY COMMENT TO WHAT WHAT I STARTED WITH. YES, MARIE. SO CAN WE APPROVE THE OVERALL AMOUNT BUT REQUEST MORE DETAIL? I WOULD I WOULD ASK YOU JUST IF YOU WANT TO CHANGE INDIVIDUAL AMOUNTS, CHANGE THE INDIVIDUAL AMOUNT, AND THEN WE'LL WORK FROM THERE BECAUSE THIS ISN'T ALL OF THAT 6/8 ANYWAY. THERE'S SOME MONEY THAT'S RESERVED FOR THE RESERVE FUND. THERE'S SOME MONEY THAT'S RESERVED FOR CULTURAL ARTS, SO ANY MONEY THAT ISN'T SPENT OUT OF THIS GOES INTO THE RESERVE FUND, WHICH ALREADY EXISTS. SO IT ISN'T NECESSARY TO RECALCULATE REDIVIDE AND SO FORTH. WHAT KIND OF DETAIL GOES INTO THIS SCORING? WELL, THE I VERIFIES FINANCIALS. IF THE MAYOR IF THE MAYOR WANTED TO CALL ON MISS BRANUM TO HELP EXPLAIN THIS, I'M OKAY WITH THAT. BUT THE IT IT DEPENDS ON THE SIZE OF THE PACKET THAT THE ORGANIZATION SENDS OVER. SOMETIMES THEY'RE THIS BIG, SOMETIMES THEY'RE THREE PAGES, YOU KNOW IT AND IT ISN'T THAT. I WANT TO MAKE A COMMENT ON THIS THERE'S A MOTION ON THE FLOOR TO APPROVE WHAT'S ON OUR AGENDA. HERE IS ITEM 8DD AS IN DAVID, I'M GOING TO TALK IN FAVOR OF APPROVING THIS MOTION. I THINK I THINK THE COMMENTS FROM COUNCILMAN COLLINS COUNCILWOMAN ROBB IS VERY WELL TAKEN. [04:00:02] BUT IN THE IN THE DISCUSSION OF WHO SHOULD BE FUNDING THESE IN THE FUTURE AND HOW MUCH MONIES SHOULD BE ALLOCATED FOR THIS IN THE FUTURE, I THINK IS A DISCUSSION WE NEED TO HAVE. I WOULD SAY, THOUGH, THESE ORGANIZATIONS, AS WE TALKED ABOUT THIS MORNING, THIS CULTURE, THE ARTS AND HISTORIC PRESERVATION BOARD, REALLY TAKES THIS SERIOUSLY. AND THEY HAVE GONE THROUGH THIS ORDINANCE AND WE HAVE KIND OF ESTABLISHED IN THE PAST THE RUBRICS FOR HOW THESE PARTICULAR ORGANIZATIONS ARE EVALUATED. IS IT COMPLETELY 100% OBJECTIVE? NO. AND THERE'S NO WAY TO MAKE IT THAT WAY. YOU'LL NEVER GET WE COULD SIT DOWN AND PROBABLY IN EACH ONE OF THESE ON THE LIST ARGUE IN FAVOR OF FOR OR AGAINST REDUCING OR INCREASING THEIR FUNDING AND MAKE A CASE FOR THAT. BUT I'M GOING TO PUT THIS THIS COMMITTEE HAS WORKED VERY HARD AND VERY DILIGENTLY TO PUT THEIR EXPERTISE AND FOLLOW THE DIRECTIONS OF THE ORDINANCE THAT WAS ESTABLISHED BY COUNCIL. AND I THINK THAT WE OWE IT TO THEM BECAUSE THEY'VE PUT THE TIME INTO IT TO GO AHEAD AND TO APPROVE THIS ITEM. JOHN, HOW MANY PEOPLE OR ORGANIZATIONS SUBMIT APPLICATIONS FOR THIS MONEY? THE ONES YOU SEE BEFORE YOU DON'T THINK AT ALL FUNDED THERE. EVERY ORGANIZATION THAT KNOW THERE WERE MARY, WHY DON'T WE COME UP? I THINK A LOT OF THESE QUESTIONS WOULD BE I DON'T BELIEVE ANYBODY. I DON'T BELIEVE ANYBODY WHO APPLIED THIS YEAR IS NOT ON THIS LIST. THE THE OIL RIG MUSEUM HAS IN THE PAST APPLIED AND FAILED TO FOLLOW THROUGH AND SO FORTH THERE. LET'S LET'S LET. MARY. MARY, ARE THERE ANY ORGANIZATIONS THAT HAD APPLIED THIS YEAR AND WERE TURNED AWAY? WE HAD A I WANT TO SAY AN APPLICATION, BUT IT WAS LIKE FIVE DIFFERENT ENTITIES. BUT THEY DID NOT MEET THE REQUIREMENTS OF THE CITY ORDINANCE OR THE STATE TAX CODE. THEY WERE NOT 500 AND 1C3. THEY WANTED FUNDING FOR JUST INDIVIDUAL. ONE TIME IT HAD TO DO OVER THE JUNETEENTH PROCESS AND EVENTS, BUT THEY WERE NOT 501. C THREE SECONDS 500 AND 1C3 THAT SUBMITTED APPLICATION, GOT SOME TYPE OF FUNDING. YES, THESE ARE WE HAD. LET ME GO THROUGH HERE. WE I THINK WE HAD FOR FOUR NEW ONES, WHICH THOSE ARE THE ZEROS WE HAD ONE, TWO, THREE, FOUR, FIVE, FIVE NEW ONES FOR FOR THIS FUNDING FOR 23 TO 25. WE HAD ONE THAT WAS A PRIOR ONE THAT WAS THE OCEAN STAR RIG MUSEUM THAT THEY, THEY DID NOT MEET THE REQUIREMENTS BY LATE, LATE APPLICATIONS, LATE AND LATE REPORTING. WELL, THEY DIDN'T EVEN REPORT SINCE LAST YEAR. SO WE HAD ONE THAT DROPPED OUT, BUT THEY MET THE REQUIREMENTS OF BEING A 500 AND 1C3, WHICH IS THE NUMBER ONE REQUIREMENT. AND THE OTHER IS, IS WITH THEIR PROGRAM QUALITIES AND WHAT'S PRESENTED IN THEIR IN THEIR APPLICATIONS, WHICH ARE QUITE EXTENSIVE. AND AS WE DISCUSSED EARLIER THIS MORNING, IT WAS THEIR VISITOR APPEAL. AND THE OTHER IS THE THEIR ADMINISTRATIVE ABILITY. AND THAT'S JUST AS IMPORTANT BECAUSE IT REFLECTS ON THE QUARTERLY REPORTING AND THE YEAR END REPORTING. BUT IT ALSO SHOWS WHEN THEY PRESENT THEIR APPLICATIONS AS TO WHAT THEY'RE CAPABLE OF DOING. I MEAN, THAT ESPECIALLY WITH THE NEW ONES, I MEAN, THIS IS THE INCEPTION TO SEE WHAT THEY'RE CAPABLE OF AND ANY PRIOR HISTORY ON IT. SO I GUESS THAT'S WHAT GIVES ME PAUSE WHEN IT COMES TO THE THE FARMERS MARKET. AND I DON'T WANT TO VOTE AGAINST THIS, BUT I DO. I JUST HAVE A HARD TIME SUPPORTING THAT WHEN I KNOW WE WHEN THEY WERE RENTING PROPERTY FROM THE CITY ON AN ANNUAL BASIS FOR NEXT TO NOTHING, THEY MISSED THEIR PAYMENT. SO I WOULD QUESTION ONE THE ADMINISTRATION TO I WOULD QUESTION LIKE THE BUDGET JUST I 754,000 LIKE YOU COULD MAKE UP ANY NUMBER. AND ABSOLUTELY IRONICALLY I DO AGREE WITH YOU. WHEN WE HAD OUR WHEN WE HAD OUR MEETING, THIS WAS ONE OF THEM THAT I THAT I DID QUESTION BECAUSE A BEING A FARMER'S MARKET AND THE THE BOARD MEMBER THAT WAS IN CHARGE OF REVIEWING THAT AND DOING THE SITE VISITS AND THAT REVIEWED, I BROUGHT IT UP AT THE BOARD WHICH WE HAVE A FULL BOARD AND I WAS VOTED DOWN. SO AGAIN, THAT'S BEING SUBJECTIVE OR OBJECTIVE WITH MY QUESTIONING. AND AGAIN, THEY REVIEWED THE COMPLETE APPLICATION, WHICH WAS QUITE EXTENSIVE. [04:05:04] I NO LONGER HAVE THEM THEIR TURN BACK INTO THE CITY BECAUSE THEY HAVE OBVIOUSLY FINANCIAL AND PROPRIETARY INFORMATION THAT I DON'T WANT ANY OF THE BOARD MEMBERS OR MYSELF TO BE RESPONSIBLE FOR AWAY FROM CITY HALL. SO. SO THEY'RE BACK AT THE CITY. I'D RATHER SEE THAT MONEY GO TO THE GRAND WHEN I HAVE SO MANY QUESTIONS ABOUT WHAT WE'VE SEEN HERE. YOU KNOW, THEY HAD A PAYMENT OF LIKE $100 A YEAR OR WHATEVER IT WAS. BRIAN AND THEY MISSED IT. IT MAKES ME QUESTION THE ADMINISTRATION. PLUS HAVING ATTENDED IT AND I'M A FAN OF FARMERS MARKETS, I GO TO FARMERS MARKETS AND OTHER COUNTRIES AND WHATNOT, BUT I'VE BEEN TO THIS ONE. I DON'T QUESTION YOUR YOUR COMMENTS ON IT WHATSOEVER. AS I SAID HERE, AS AS THE CHAIR OF THE ARTS AND HISTORIC PRESERVATION ADVISORY BOARD. AND AGAIN, WHAT WHAT IS ON THIS IS WHAT WAS UNANIMOUS. WHATEVER YOU ALL DECIDE TO DO, OBVIOUSLY ABIDE WITH AND WILL CHANGE BECAUSE CONTRACTS ARE TO BE SIGNED IN SIX DAYS, THE SIX 16TH OF AUGUST HERE. SO I CAN CHANGE. AND THAT'S KIND OF MY QUESTION ABOUT THE APPLICANTS AND ALL THE 501. C THREES THAT APPLIED AND THEY RECEIVE FUNDING. AND THE CRITERIA THAT'S USED TO EVALUATE THEM IS THAT IT SEEMS LIKE THAT WILL START WATERING DOWN SOME OF THE ORGANIZATIONS THAT I THINK ARE MORE NEEDING OF THIS MONEY THAN THAN OTHERS. AND SO I WOULD LIKE TO TRY TO GET A LITTLE MORE OF AN OBJECTIVE CRITERIA THAT WE DON'T HAVE THESE QUESTIONS UP HERE AT COUNCIL WHEN THIS COMES IN FRONT OF US. I MEAN, IT IT'S NOT SURPRISING, BUT I AM SURPRISED THAT EVERYBODY THAT APPLIED FOR THIS GOT SOMETHING. YEAH, I GUESS, AGAIN, HAVING THE WHAT WHAT IS ON THE APPLICATION WITH THE CITY, WHICH IS ANOTHER THING THAT I WOULD LIKE TO SPEND THE TIME THIS NEXT YEAR AND UPDATING THAT THEY HAVE TO MEET THE CRITERIA AND THERE'S A THERE IS A PAGE THAT EVERYTHING IS CHECKED OFF THAT HAS TO BE IN THAT APPLICATION. AND THE REQUIREMENT BY THE ORDINANCE IS FOR THOSE OF FOR THE BOARD EACH APPLICATION HAS TO BE REVIEWED BY TWO BOARD MEMBERS. SO IT'S NOT JUST ONE UNANIMOUS. AND LIKE I SAID, I DID QUESTION SOME OF THEM ON THERE. AND AND THEN OBVIOUSLY A VOTE IS TAKEN. I HAVE A QUESTION, MR. MAYOR. YES, MR. KOWALSKI. RATHER THAN APPROVING THIS FOR 2425, COULD WE APPROVE IT FOR 24 ONLY AND THEN REVIEW THIS? I BELIEVE THE OPTIONS YOU HAVE ARE TO VOTE THE ENTIRE RESOLUTION DOWN. UH. VOTE ALL OF THEM AND APPROVE THEM ALL. OR IF YOU HAVE PARTICULAR QUESTIONS ABOUT ONE ORGANIZATION, APPROVE THE REST AND DEFER ACTION AS TO THAT ONE. DOES THAT ANSWER YOUR QUESTION? IT DOES. I CERTAINLY DON'T WANT TO VOTE THIS RESOLUTION DOWN. I MEAN, SOME OF OUR PREMIER VISITOR ATTRACTING AMENITIES ARE ON THIS LIST. I DON'T WANT TO. WOULD YOU BE RECEPTIVE TO AMENDING YOUR MOTION TO MOVE FORWARD WITH THE OTHERS TO TAKE THIS ONE? OTHER FURTHER DISCUSSION. I WOULD ASK WHAT THAT DISCUSSION WOULD BE. I MEAN, I WOULD LIKE TO SEE THE DETAILS. IF THAT'S THE CASE, I'D LIKE TO SEE THE DETAILS ON ALL OF THE OTHER ONES THAT SCORED LOWER THAN THAT, THE LOWER SCORING ONE. SO WE NEED TO DEFER ALL OF THOSE LESS THAN 90 AND WITH A SCORE OF LESS THAN 90. WELL, I THINK YOU I MEAN, I DON'T WANT TO I WOULDN'T I WOULD BEG TO TO DIFFER WITH YOU ON THAT. BUT I DON'T WANT TO VOTE AGAINST THIS. BUT I HAVE A REAL ISSUE WITH THAT. FROM THE CITY'S PAST EXPERIENCE, I MIGHT ACCEPT AN AMENDMENT THAT SAYS WE DEFER ACTION ON FIRST TIME RECIPIENTS, REVIEW THOSE. I'M GOOD WITH THAT AND APPROVE THE REMAINDER THAT WORKS. I HAVE A QUESTION. WELL, THAT'S. THAT'S. LET'S CLEAN THIS UP. JUST A SECOND. COUNCIL. THERE IS A COUNCILMAN COLLINS IS WANTING TO AMEND THIS MOTION. IS THAT CORRECT, COUNCILMAN COLLINS? TO HAVE TO APPROVE THESE ALL, BUT FOR THE FIRST YEAR RECIPIENTS, IS THAT CORRECT? THAT WAS MY AMENDED MOTION. IS THAT COUNCILMAN FINKLEY? NO. I'D LIKE TO AMEND THE MOTION TO INCLUDE ALL THOSE WITH A SCORE OF LESS THAN 90 TO DEFER ALL THOSE LESS THAN THE SCORE. [04:10:03] AGREE TO THAT. I'D RATHER JUST REMOVE RESCIND MY MOTION. ALL RIGHT. IF YOU RESCIND YOUR MAKE A MOTION, MAYOR, I WOULD WITHDRAW MY MOTION. I'LL MAKE A MOTION. THAT'S JUST. JUST ONE SECOND I NEED TO GET GUIDANCE ON. HE WANTS. WE WANT TO REMOVE THIS MOTION. IF YOU WISH TO WITHDRAW YOUR MOTION, YOU ARE FREE TO DO SO. I WITHDRAW MY MOTION AND I WOULD LIKE TO MAKE A MOTION. DOES THE SECOND HAVE TO PARTICIPATE WITH THIS, DON? NO, I DON'T BELIEVE SO. OKAY. THE MOTION IS WITHDRAWN. YES, COUNCILWOMAN. I'D LIKE TO MAKE A MOTION THAT WE APPROVE ALL THE REQUESTS EXCEPT FOR THE FIRST TIME APPLICANT SO WE CAN FURTHER REVIEW. AND IF YOU WOULDN'T MIND, COULD I'D LIKE TO ENUMERATE WITH THOSE WOULD BE. THEY ARE ALL THE ONES THAT HAVE A ZERO. THEY ARE. THEY ARE. THEY ARE. MAYOR THE LAST COLUMN THEY ARE FRIENDS OF MOODY GARDEN, GALVESTON, LULAC, GALVESTON, OWENS FARMERS MARKET NEAR CULTURAL CENTER AND OLD CENTRAL CULTURAL CENTER. SO WE WOULD BE APPROVING IN YOUR MOTION ALL OF THE INDIVIDUAL ORGANIZATIONS LISTED. BUT FOR THOSE FIRST TIME ORGANIZATIONS UNDER FURTHER REVIEW, THEN UNDER FURTHER REVIEW, THAT'S BEEN ENUMERATED. ALL RIGHT. THERE'S A MOTION FOR THAT. IS THERE A SECOND? NO, I JUST HAVE A QUESTION. WELL, THAT MOTION FOR DISCUSSION. WE HAVE A SECOND BY COUNCILMAN LISTOWSKI. YES, SHARON, WHY WOULD WE PICK ALL THE FIRST YEAR APPLICANTS? WHAT WOULD BE THE RATIONALE? BECAUSE IF YOU LOOK AT THEIR SCORES, THERE'S NO PATTERN OF WHY WOULD WE PICK THOSE WHO THEY'RE FIRST YEAR APPLICANTS? WELL, MY QUESTION LIKE IT'S A WAY TO GET THE MOTION PASSED WOULD BE MY MY ANSWER. BUT WHY WOULD OLD CENTRAL CARVER SCORE SO LOW IN COMPARISON IN COMPARISON TO THE FARMER'S MARKET? YOU KNOW, I DON'T UNDERSTAND THAT EITHER. BUT IF WE SEE THE DETAIL, WE MAY GET ANSWERS TO ALL THE QUESTIONS THAT STILL EXIST BETWEEN COUNCIL. I UNDERSTAND THAT. MAYBE IF WE COULD SEE THAT ACTUAL RUBRIC. THE WAY THAT THEY USED TO SCORE THE ACTUAL ONE TO SEE WHERE HOW DID THIS ONE SCORE THIS LOW AND THIS ONE SCORED THIS. I THINK IT WOULD BE GREAT TO SEE THAT, COULD SEE THE ACTUAL I'D BE GLAD TO AMEND TO SEE THE ACTUAL RUBRICS, BUT ALSO TO HOLD ON THE FIRST YEAR UNTIL WE'VE HAD A CHANCE TO REVIEW THAT AND THEN TAKE IT UNDER CONSIDERATION FOR FUNDING. COULD WE ASK YOU GO RIGHT AHEAD, SIR. COULD WE ASK YOU TO BRING THAT TO OUR NEXT COUNCIL MEETING? THEY WERE ALL COMMITTED TO THE CITY. OKAY. WE HAVE THE APPLICATION. WELL, THEN COULD WE TAKE A CLOSER LOOK AT THESE? YOU KNOW, WE HAVE THE SCORING SHEETS. THEY WERE LEFT IN THE ROOM AFTER THE MEETING. ON TOP OF THE APPLICATIONS. OKAY. ALL RIGHT. LET'S LET'S. WE HAVE A MOTION ON THE FLOOR TO APPROVE ALL OF THESE ORGANIZATIONS. BUT FOR THE FIRST YEAR, ONES THAT WERE DELINEATED, WE HAVE A SECOND FOR THAT. ANY FURTHER DISCUSSION ON THAT MOTION? WILL THEY WILL THE FIRST YEARS AFTER WE LOOK AT THIS AND WE SAY, OKAY, EVERYTHING'S GOOD, WILL THEY BE ABLE TO GET THEIR FUNDING THIS YEAR OR ARE THEY GOING TO BE OUT? THIS IS BUDGET. THIS IS THAT'S NOT DETERMINED. WELL, IT IS APPROVED IF IT APPROVES IT, BECAUSE THE THE MONEY FOR THIS IS IN THAT FUND. NOW, THIS IS THIS IS ALLOCATING FUNDS FOR HOT DOGS. WHAT OUR REVIEW IS, SOME MAY GET MORE MONEY THAN THEY WERE DESIGNATED HERE OR SOME MAY GET LESS MONEY THAN THEY WERE DESIGNATED HERE. A PROCEDURAL QUESTION HOW IS THIS REVIEW GOING TO BE PERFORMED? IS IT GOING TO BE PERFORMED IN WORKSHOP OR ARE WE GOING TO BE INVITING THE LEADERS OF THE ORGANIZATION TO PRESENT? WE'RE GOING TO BE REVIEWING THE PACKET. CAN I ASK A PROCEDURAL QUESTION? MY THOUGHT I WAS GOING TO SUGGEST THIS BE DONE AT THE NEXT WORKSHOP WITH AN ACTION ITEM THAT NIGHT. OKAY. AND IF THIS PASSES, THEN AT OUR NEXT WORKSHOP WE WOULD DISCUSS THESE FIRST TIME ORGANIZATIONS AND THE DETAILS ON WHY THEY WERE CHOSEN AND AWARDED THE FUNDS THAT THEY WERE AND HAVE AN ACTION ITEM ON THAT MEETING TO APPROVE THOSE. CORRECT. AND I'D ALSO LIKE A REVIEW OF THE RUBRIC, AND I'M GOING TO PLAY CLASSROOM TEACHER ADVOCATE. [04:15:04] I THINK IT STARTED WITH THE QUESTION REGARDING THE FARMER'S MARKET. SO HOW DID WE GET TO EVERYONE THAT FIRST YEAR? WHY IS EVERY FIRST YEAR APPLICANT NOW PART OF IT? BECAUSE THERE'S AT LEAST ONE OTHER ON THERE THAT I QUESTION. TWO. PERHAPS IT'S THERE ARE A COUPLE THAT I WOULDN'T QUESTION IF THEY WERE LEFT ON THE LEFT ON THERE. AND IT SEEMS LIKE A MORE VALID WAY TO LOOK AT ALL OF THEM. AND AGAIN, SOME MAY END UP WITH MORE MONEY THAN THEY WERE ORIGINALLY SCORED FOR VERSUS SOME MAY END UP WITH LESS MONEY THAN THEY SCORED FOR. BUT IT IS ONE WAY TO QUALIFY. IF YOU LOOK AT ALL FIRST YEAR APPLICANTS, WHICH WILL BE MAKING THAT MEETING OR DECISION AT OUR NEXT MEETING, WHICH IS AT THE END OF AUGUST, AUGUST WHAT 20 WE HAVE A MOTION ON THE FLOOR. AND SECOND, IT I THINK EVERYONE'S CLEAR ON THIS MOTION. IF YOU'RE IN FAVOR OF DOING THAT, THEN VOTE IN FAVOR. IF YOU ARE NOT, THEN VOTE AGAINST THAT. LET'S ANY MORE DISCUSSION. PLEASE CAST YOUR VOTES. IT FAILS. OKAY. THAT IS NOT APPROVED. MOVING FORWARD, I'M GOING TO MAKE A MOTION FOR THE APPROVAL OF ITEM EIGHT D AS OUTLINED ON OUR AGENDA. IS THERE A SECOND? I SECOND THAT. SO WHY? PRESSURE APPROVAL BUTTON PRESSING TO REMOVE IT. YOU PRESS TO REMOVE IT. PRESS IT TO REMOVE IT. WHEREAS JUST TO KNOW, JUST MAKE A MOTION, A MOTION, BUT WON'T LET ME. THANK YOU, JOHN. PAUL HAS TO REMOVE HIS FIRST. NO, NO, NOT SO MUCH. TRY THAT. YOU WANT TO DO THIS BY HAND? ALL RIGHT. WE HAVE A MOTION FOR APPROVAL OF ITEM EIGHT D AS OUTLINED ON OUR AGENDA HAS BEEN SECONDED. ANY DISCUSSION? ALL THOSE IN FAVOR? OH, NO, NO. SORRY. TWO, THREE, FOUR, FIVE. THAT DOES PASS. IT'S FIVE TWO, TWO. THANK YOU. I WANT TO MAKE A STATEMENT. I'M NOT VOTING ON THIS BECAUSE OF 100% SUPPORT THE ARTS. I 100% SUPPORT THE MAJORITY OF EVERYONE ON HERE. I HAVE A REAL ISSUE WITH THE AMOUNT OF FUNDING FUNDING, WHICH IS 21,000 FOR GALVESTON'S FARMERS MARKET. I THINK SOME OF THE OTHER ORGANIZATIONS SHOULD HAVE GOTTEN MORE MONEY. SO I JUST I'M NOT VOTING FOR THIS FOR THAT REASON. AND I WANT TO MAKE IT CLEAR AND I'D LIKE TO SAY, YOU KNOW, I WOULD LIKE TO SEE THE MATRIX THAT'S USED ON THIS MEANS AND AND HOW HOW THESE GET SCORED. I MEAN, WE WE RELY ON A LOT ON THE BOARD TO BRING THIS THIS INFORMATION. BUT BUT I STILL WOULD LIKE TO KNOW HOW IT WORKS AND HOW THESE SCORES Y'ALL COME UP WITH THESE SCORES. SO IT'D BE GREAT IF WE COULD HAVE THAT AT THE NEXT WORK. AND I WILL SAY, THIS IS WHY I ASKED FOR THIS TO BE DEFERRED SO WE COULD TALK ABOUT THIS IN WORKSHOP AS OPPOSED TO JUST PUSHING IT THROUGH, WHICH WE'VE DONE EVERY YEAR FOR 25 YEARS. IT'S TIME FOR COUNCIL TO TAKE A LOOK AT WHAT WE'RE DOING HERE, HOW WE'RE DOING IT AND WHY WE'RE DOING IT. WE ARE THE STEWARDS OF THE PEOPLE'S MONEY, AND THIS IS IRRESPONSIBLE TO NOT LOOK AT THE DETAILS. MARY, WOULD YOU GET THE INFORMATION AS COUNCILMAN LISTOWSKI HAS OUTLINED? GET THAT TO JANELLE AND WE'LL DISTRIBUTE THAT AND WE ASK YOU TO JOIN US TO EXPLAIN SOME OF THAT. THANK YOU. BECAUSE YOU WROTE YOU WROTE MUCH OF THAT RUBRIC. OH, NO, NO. THE RUBRICS IN THE ORDINANCE IS THE THE RUBRIC IS IN HERE. THE PROCEDURES. THE PROCEDURES, WHICH THESE PERCENTAGES ARE DETERMINED. YEAH, THAT WAS KATHLEEN EVERLING, I THINK. WELL, BUT IT CAME FROM SHE PUT IT CAME FROM THE COMMITTEE. YES. MAY I MAKE ONE COMMENT? SURELY ON THIS THE. ON THE BUDGET. I USE THE PENNY AT 2.2.7, AND I KNEW AT ONE TIME, ONE TIME THAT IT WAS GONE UP TO 3.3. I WAS VERY CONSERVATIVE IN WHAT WE USED FOR THE MONEY. IT HASN'T GONE UP TO THREE THREE YET. [04:20:01] IT HAS NOT UNTIL NEXT YEAR. I'M STILL I'M STILL USING LAST YEAR'S BUDGET. I WANTED TO PLAY IT CONSERVATIVE FOR PROTECTION FOR EVERYONE. PERFECT. THANK YOU. THANK YOU, MARY. GREAT JOB. ITEM 80, PLEASE, MA'AM. [8.E. Consider For Approval An Ordinance Of The City Of Galveston, Texas, Modifying Rules And Policies Governing The Arts And Historic Preservation Board By Amending Chapter 33 – Taxation, Article Iii Hotel Occupancy Tax Sec. 33-95 To Amend The Required Meeting Dates; Add A Penalty Provision For Non-Compliance In Quarterly Reporting; Making Various Findings And Provisions Related To The Subject And Providing For An Effective Date. (M. Jadidi)] ITEM 80. CONSIDER FOR APPROVAL AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, MODIFYING RULES AND POLICIES GOVERNING THE ARTS AND HISTORIC PRESERVATION BOARD BY AMENDING CHAPTER 33 TAXATION. ARTICLE THREE HOTEL OCCUPANCY TAX SECTION 33 DASH 95 TO AMEND THE REQUIRED MEETING DATES, ADD A PENALTY PROVISION FOR NONCOMPLIANCE AND QUARTERLY REPORTING, MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT AND PROVIDING FOR AN EFFECTIVE DATE. VERY GOOD. WE DISCUSSED THIS AGAIN THIS MORNING AND WORKSHOP. IS THERE A ENTERTAIN A MOTION ON THIS? I WOULD MOVE APPROVAL AND MOVE APPROVAL BY COUNCILMAN COLLINS. A SECOND, PLEASE. ALL SECOND. SECOND BY COUNCILWOMAN LOUIS. ANY. OH, SORRY. CLICK. ANY DISCUSSION. PLEASE CAST YOUR VOTES. NOPE. NOPE. THERE YOU GO. OH. LET'S JUST DO IT. MANUAL. TECHNICAL DIFFICULTIES. TECHNICAL. ALL THOSE IN FAVOR? THAT IS UNANIMOUS. THANK YOU VERY MUCH. COUNCIL IT IS. 3:46 P.M.. WE HAVE NOW GONE THROUGH ALL THE ITEMS ON OUR AGENDA. WE ARE ADJOURNED. THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.