Sep 14, 2023 Special Council

>> THERE IS NO NEW EMPLOYEES IN THE GENERAL FUND.

>> TURN YOUR MIC ON.

>> OKAY. THANK YOU.

>> YOU'RE WELCOME.

>> VERY GOOD. WE'VE HAD A SERIES OF MEETINGS ON THIS BUDGET, BUT ANY FURTHER QUESTIONS FOR MS. LEDANYA? VERY GOOD. WE MAY CALL YOU BACK SHEILA, IN JUST A SECOND.

THANK YOU. VERY GOOD.

IT IS 9:07 A.M. [OVERLAPPING]

>> MICHAEL OFTEN WHEN HE PRESENTED THE BUDGET [LAUGHTER].

>> HE DOESN'T WEAR BLOUSES. [LAUGHTER].

>> I'M GOING TO OPEN THE PUBLIC HEARING ON ITEM 3A.

IS ANYONE IN THE AUDIENCE WANTING TO MAKE A COMMENT ON THIS PARTICULAR ITEM? VERY GOOD HEARING NO RESPONSE.

IT IS 09:08 A.M.

I'M GOING TO CLOSE THE PUBLIC HEARING ON ITEM 3A.

I'M GOING TO BRING THAT BACK TO COUNCIL FOR ANY RECOMMENDATIONS OR ACTIONS COUNCIL.

>> I WOULD MOVE APPROVAL.

>> MOVE APPROVAL OF ITEM 3A.

WE HAVE A MOTION FOR A SECOND OF ITEM 3A? VERY GOOD.

ANY FURTHER DISCUSSION ON THAT? ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTE.

>> WE NEED A ROLL CALL. THANK YOU.

>> THAT IS UNANIMOUSLY APPROVED.

THANK YOU VERY MUCH.

MIKE AND SHEILA, THANK YOU VERY MUCH FOR ALL YOUR EFFORTS ON THIS AND BRIAN, THANK YOU AND THE DEPARTMENT HEADS?

>> YOU COULD DOUBLE THAT SHEILA AND DEBBIE PIERS FOR SURE SO KUDOS TO THEM THEY PUT IN THE HOURS.

>> VERY GOOD. LET'S MOVE TO ITEM 3A1 PLEASE.

[3.A.1. Consider For Action A Motion Ratifying The Property Tax Increase Reflected In The FY 2024 Budget.]

>> 3A1 CONSIDER FOR ACTION.

EMOTION RATIFYING THE PROPERTY TAX INCREASE REFLECTED IN THE FY 2024 BUDGET.

>> I'M GOING TO MAKE A MOTION FOR APPROVAL OF ITEM 3A1.

IS THERE A SECOND FOR THAT?

>> SECOND THAT.

>> ANY DISCUSSION OF THAT?

>> I JUST WANT TO MAKE A COMMENT BECAUSE WE ARE LOWERING THE TAX RATE.

BUT WE'RE NOT LOWERING YOUR TAXES BECAUSE OF THE RACE AND APPRAISALS.

THIS IS NOT A NO NEW NET REVENUE TAX RATE, ALTHOUGH IT IS PERHAPS THE CLOSEST WE COULD GET TO IT.

I JUST WANT TO MAKE SURE THE PUBLIC UNDERSTANDS IT.

>> VERY GOOD. ANY OTHER COMMENTS? MISS LEDANYA.

>> THIS IS NOT A ROLL CALL VOTE.

HOWEVER, ON THE SECOND PAGE OF YOUR STAFF REPORT, YOU'LL NOTICE THAT THERE'S SPECIFIC LANGUAGE FOR THE MOTION.

[00:10:03]

>> VERY GOOD. SHAKE IT.

>> IT IS I MOVE THAT WE RATIFY THE PROPERTY TAX INCREASE REFLECTED IN THE FY 24 BUDGET.

>> DO YOU WANT ME TO.

>> YOU CAN JUST SAY SO MOVE.

>> I MOVE, WE RATIFIED.

>> SAY IT AGAIN. [LAUGHTER] BECAUSE I HAVE IT IN FRONT OF ME. I APOLOGIZE.

>> HERE IT IS, DAVID RIGHT HERE.

>> I HAVE TO TEST IN THE BUDGET.

>> I MOVE THAT WE RATIFY THE PROPERTY TAX RATE INCREASE REFLECTED IN THE FY24 BUDGET. HAPPY.

>> VERY GOOD. WE HAVE A MOTION FOR APPROVAL AS STATED BY COUNCIL MEMBER COLLEAGUES, [OVERLAPPING] PLEASE.

>> WE HAVE A SECOND BY A COUNCIL MEMBER, ROB, ANY DISCUSSION? PLEASE CAST YOUR VOTE ON THAT.

>> SHARON, WOULD YOU SECOND?

>> YEAH LET ME HIT IT.

>> I WILL SECOND THAT MOTION.

>> PLEASE HIT THE BUTTON.

>> YOU CAN'T VOTE TODAY

>> NOW, WE'LL.

>> TURN OFF YOUR MIC. [OVERLAPPING]

>> THERE IT IS. UNANIMOUS VOTE.

THANK YOU VERY MUCH.

THIS MOVED ITEM 3B PLEASE JANELLE.

[3.B. Public Hearing Only: An Ordinance Of The City Of Galveston, Texas Levying Ad Valorem Taxes For Tax Year 2023 In The Amount Of 40 Cents And 8.850 Mills ($0.408850) Upon Each One Hundred Dollars ($100.00) Of Property Valuation For The Tax Year 2023; Making Various Findings And Provisions Related To The Subject.]

>> ITEM 3B PUBLIC HEARING ONLY.

AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, LEVYING AD VALOREM TAXES FOR TAX YEAR 2023.

IN THE AMOUNT OF $0.40 IN 8.850 MEALS OR 0.408850 UPON EACH $100 OR PROPERTY VALUATION FOR THE TAX YEAR 2023.

MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT.

>> VERY GOOD. THIS IS FOR PUBLIC HEARING ONLY.

THIS WILL BE ON OUR AGENDA, AS I MENTIONED, FOR SEPTEMBER 21ST FOR APPROVAL OR MOTION BY COUNCIL.

VERY GOOD. SHEILA, DID YOU HAVE ANY COMMENTS ON THIS?

>> THE ONLY THING I WOULD SAY IS THAT, THE NEXT SLIDE PLEASE.

THERE WE GO. IT IS THE RATE THAT IS BEING PROPOSED AS A PART OF THIS BUDGET IS ABOVE THE NO NEW REVENUE TAX RATE.

THAT IS WHY THE LANGUAGE WILL BE SPECIFIC WHEN YOU ARE PROVING THIS AND NEXT WEEK'S COUNCIL MEETING.

HOWEVER, IT IS SIGNIFICANTLY BELOW THE VOTER APPROVAL TAX RATE, AND SO THAT'S FANTASTIC FOR RESIDENTS OF GALVESTON.

THE MAINTENANCE AND OPERATIONS PORTION OF THE TAX RATE IS 36.5784 OR 0.365784 PER HUNDRED DOLLAR VALUE.

THE DEBT RATE IS DECREASING THIS YEAR AS A RESULT OF DEBT THAT WAS RETIRED IN THE CURRENT FISCAL YEAR AND IT IS DECREASING TO 0.043066.

I'M ALSO HAPPY TO ANSWER ANY QUESTIONS.

AS A REMINDER, WHEN VOTING ON THE TAX RATE IT REQUIRES A SUPER MAJORITY OF 5/7.

THAT'S IMPORTANT CONSIDERATION AS WE'RE HEADING INTO NEXT WEEK.

IT IS ALSO A ROLL CALL VOTE NEXT WEEK. THANK YOU.

>> THANK YOU, SHEILA.

ANY QUESTIONS FOR MISS LEDANYA? IT IS 09:13 AM I'M GOING TO OPEN THE PUBLIC HEARING ON ITEM 3B.

IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE A COMMENT ON THIS ITEM? HEARING NO RESPONSE AT 09:13 AM I'M GOING TO CLOSE THE PUBLIC HEARING ON ITEM 3B, AND THIS WILL BE BROUGHT BACK TO OUR AGENDA ON SEPTEMBER 21ST.

THANK YOU VERY MUCH. ITEM 4 PLEASE.

[4. PRESENTATIONS/REPORTS OF COUNCIL, OFFICER BOARDS, AND CITY MANAGER]

>> ITEM 4 PRESENTATIONS, REPORTS OF COUNSEL, OFFICER, BOARDS, AND CITY MANAGER.

PURSUANT TO THE TEXAS GOVERNMENT CODE, SECTION 551.0415, THE CITY COUNCIL MAY REPORT ON ANY OF THE FOLLOWING ITEMS.

>> VERY GOOD. WE DO HAVE ON OUR AGENDA AND IT'S OUR HONOR TODAY TO HAVE A PROCLAMATION HONORING CONSTITUTION WEEK.

TO PRESENT THAT PROCLAMATION IS OUR MAYOR PRO TEM, DAVID COLLINS. PLEASE COME FORWARD.

>> GOOD MORNING.

>> MIDDLE SCHOOL RIGHT HERE.

[LAUGHTER] WHEREAS IT IS THE PRIVILEGE AND DUTY OF THE AMERICAN PEOPLE TO COMMEMORATES THE 236TH ANNIVERSARY OF THE DRAFTING OF THE CONSTITUTION OF THE UNITED STATES OF AMERICA WITH APPROPRIATE CEREMONIES AND ACTIVITIES, AND WHEREAS PUBLIC LAW 915 GUARANTEES THE ISSUING OF A PROCLAMATION EACH YEAR BY THE PRESIDENT OF THE UNITED STATES, DESIGNATING SEPTEMBER 17TH THROUGH THE 23RD AS CONSTITUTION WEEK.

THEREFORE, WE, THE MAYOR AND CITY COUNCIL AND THE CITY OF GALVESTON DO HEREBY PROCLAIM THE WEEK OF SEPTEMBER 17TH THROUGH SEPTEMBER 23RD AS CONSTITUTION WEEK.

URGE ALL CITIZENS TO STUDY THE CONSTITUTION

[00:15:02]

AND REFLECT ON THE PRIVILEGE OF HAVING AN AMERICAN, OF BEING AN AMERICAN WITH ALL THE RIGHTS AND RESPONSIBILITIES IN WHICH THAT PRIVILEGE INVOLVES.

IN TESTIMONY WERE WITNESSED BY HAND IN THE SALE OF THE CITY OF GALVESTON, THIS 14TH DAY OF SEPTEMBER 2023.

SIGNED CRAIG BROWN MAYOR, WILLIAMS, CITY SECRETARY. THANK YOU.

>> GOOD MORNING. MY NAME IS SHAWN CARLSON AND I AM A MEMBER OF THE GEORGE WASHINGTON CHAPTER OF THE DAUGHTERS OF THE AMERICAN REVOLUTION.

>> PERMIT.

>> FEEL FREE

OUR CHAPTER IS THE OLDEST ONE IN TEXAS.

WE'VE BEEN SERVING THIS COMMUNITY FOR 128 YEARS NOW, AND ALSO SURROUNDING COMMUNITIES.

SINCE CONGRESS FIRST RECOGNIZED CONSTITUTION WEEK IN 1956 WE HAVE BEEN PROVIDING POSTERS AND DISPLAYS AND PRESENTATIONS TO THE LOCAL MIDDLE SCHOOLS AND HIGH SCHOOLS.

THIS PROCLAMATION IS ANOTHER WAY OF RECOGNIZING AND PROMOTING THE CONSTITUTION.

OUR GOAL ALL ALONG HAS BEEN TO EDUCATE THE PUBLIC ABOUT THE CONSTITUTION AND ITS PRINCIPLES AND VALUES.

WE APPRECIATE VERY MUCH RECEIVING THIS PROCLAMATION TODAY. THANK YOU.

>> EXCELLENT. THANK YOU DEAR LADIES.

[APPLAUSE] [BACKGROUND]

>> CONGRATULATIONS TO YOU. VERY GOOD.

COUNCIL, IS THERE ANY OTHER ANNOUNCEMENTS OR ANY OTHER COMMENTS FROM COUNCIL YOU WOULD LIKE TO MAKE? COUNCIL MEMBER ROB.

>> SATURDAY MORNING, THE WEST GALVESTON PROPERTY OWNERS MEETING WILL BE MEETING AT THE GALVESTON COUNTRY CLUB AT 9:00 AM.

THE SPEAKER WILL BE IAN O'SULLIVAN FROM THE CORPS OF ENGINEERS.

HE WILL BE TALKING ABOUT THE USACE PROTECTION PROJECT.

I THINK IT'S PEOPLE WHO ARE INTERESTED AND THEIR SEQUENCING AND HOW THEY MOVE FORWARD, [NOISE] NEED TO ATTEND THAT MEETING.

EXCUSE ME, BECAUSE I THINK IT'S IMPORTANT THAT WE GIVE AS MUCH INPUT AS POSSIBLE.

IT'LL BE 9:00 AM, WEST GALVESTON PROPERTY OWNERS.

EVERYONE IS INVITED.

THEY HAVE A FREE BREAKFAST AT THE GALVESTON COUNTRY CLUB. THANK YOU.

>> VERY GOOD. THANK YOU, MARIE.

ANY OTHER ANNOUNCEMENTS FROM COUNCIL? [NOISE] THANK YOU VERY MUCH.

LET'S MOVE TO NOW,

[8.A. Clarification Of City Council Agenda Items - This Is An Opportunity For City Council To Ask Questions Of Staff On Agenda Items (20 Min)]

JINTAO AS ANNOUNCED EARLIER, LET'S MOVE TO ITEM 8A, PLEASE, MA'AM.

>> 8A, CLARIFICATION OF CITY COUNCIL AGENDA ITEMS. THIS IS AN OPPORTUNITY FOR CITY COUNCIL TO ASK QUESTIONS OF STAFF ON AGENDA ITEMS.

>> COUNCIL, IS THERE ANY CLARIFICATION OF ANY OF THE ITEMS THAT ARE ON OUR AGENDA AS WE MOVE BACK INTO REGULAR SESSION HERE LATER THIS AFTERNOON, THAT COUNCIL WOULD LIKE TO ASK?

>> THINGS THAT ARE REGARDING THE PORTS BOND AND THE AUDIT AND SO FORTH, WE'LL BE DISCUSSING AT THE TIME THAT THEY'RE PRESENTED.

>> YES, MA'AM, THAT IS CORRECT.

ANY OTHER COMMENTS? I HAVE ONE, DONNA OR WHOEVER THIS IS, DIRECTED TO, ITEM 11B, AS IN BOY, THERE WAS A SENTENCE OR A PARAGRAPH, I SHOULD SAY THAT WAS AT THE END OF THIS.

I'D LIKE TO GET SOME CLARIFICATION IF I COULD OF THAT SENTENCE AT THE END OF THAT THAT PARTICULAR ITEM.

IT READS, LET ME PULL THAT UP.

AT THE END OF THAT IT SAYS ALL COST INCURRED IN THE ISSUANCE OF BONDS FOR THE USE BY THE WHARVES BOARD SHALL BE PAID BY THE WHARVES BOARD.

IN THE EVENT THE DECISION IS MADE NOT TO ISSUE BONDS FOR THE WHARVES BOARD, ANY COST INCURRED IN MAKING THAT DETERMINATION SHALL BE PAID BY THE WHARVES BOARD.

WHAT COSTS ARE THOSE? THESE ARE CITY COSTS?

>> FINANCIAL ADVISERS WORKING ON THE PLAN.

WHATEVER THEY'VE HAD WORKING WITH BOND COUNCIL

[00:20:03]

PROBABLY BUT THE PLAN COUNCIL GETS PAID OUT OF THE INSURANCE.

IF THEY INCURRED COSTS AND THE BOND ISSUE WERE NOT TO PASS, IT CLARIFIES THE POINT WHICH CARRY THOSE COSTS.

>> OKAY. IF THEY'VE COME BACK WITH THIS AS WE HAVE ON OUR AGENDA TODAY AND COUNCIL DOES NOT APPROVE THAT BOND, THEY HAVE TO PAY THE CITY'S COST ON THAT.

IS THAT WHAT YOU PUT IN HERE?

>> ACTUALLY I DON'T THINK THE CITY HAS ANY COSTS.

>> KINDLY USE THE MIC.

>> IT'S ASSOCIATED WITH THE PORTS BONDS.

>> CORRECT, BUT THE COST THAT YOU'RE TALKING ABOUT, THESE ARE CITY COSTS.

>> WOULD THEY UNDERSTAND THAT?

>> NOW, WHAT COSTS?

>> AT ANY COSTS.

>> OKAY. NOW THEY UNDERSTAND THAT.

I WAS CONFUSED ON THAT. THANK YOU.

ANY OTHER CLARIFICATION OF ITEMS COUNCIL MEMBERS? OKAY. VERY GOOD. YES, MA'AM.

>> I'M GOING TO ASK ANOTHER QUESTION BECAUSE YOUR QUESTION YOU JUST SAID WENT AS FAR AS THE DISCUSSION OF THE CITY AUDIT PLAN, THAT'S OUR TOTAL AUDIT PLAN, NOT IN REFERENCE TO THE PORT.

>> WELL, THAT'S GOOD. THERE'S TWO ITEMS. I DON'T KNOW IF THIS ANSWERS THE QUESTION.

WE HAVE AN ITEM ON OUR AGENDA TO APPROVE THE CITY AUDITOR'S PLAN.

>> THEN ALSO AND WE'LL DISCUSS THIS AT THAT TIME, WE DO HAVE AN ITEM AND THAT IS ITEM, LET ME MAKE SURE I GET IT CORRECT.

>> 11C.

>> 11C IS THE CITY AUDITOR'S PLAN, 11D AS IN DAVID.

EXCUSE ME, I TAKE THAT BACK.

>> IT SHOULD BE AS THE AUDIT PLAN FOR THE CITY.

>> AS AUDIT PLAN AND C IS A MOTION FOR A PRIVATE AUDITING FIRM THAT WOULD NOT BE INVOLVED WITH THE CITY AUDITORS.

>> BECAUSE I HAVE SOME COMMENTS ON THAT.

>> YES, MA'AM.

I'M GOING TO SAVE IT FOR WHEN WE'RE DISCUSSING THAT ITEM BECAUSE I THINK WE NEED TO MAKE SOME CHANGES TO THAT PLAN.

>> OKAY. SOUNDS GOOD.

WE'LL DO THAT WHEN WE COME UP TO THAT ITEM THEN. VERY GOOD.

ANY OTHER COMMENTS ON OUR CLARIFICATION COUNCIL? LET'S MOVE NOW TO ITEM 5, PLEASE, JANELLE.

[5.1. Wharves Board]

>> ITEM 5, INTERVIEW APPLICANTS: 1, WHARVES BOARD.

>> COUNCIL, WE HAVE OUR INTERVIEWS THAT WE HAVE BEEN PLANNING FOR FOR TODAY FOR WHARVES BOARD AND PLANNING COMMISSION TODAY.

WE'LL START THOSE INTERVIEWS VERY SHORTLY.

WE'LL HAVE THE INTERVIEWS IN THE COUNCIL CHAMBERS HERE.

FOR THOSE INDIVIDUALS THAT MAY NOT BE INTERVIEWING AT THAT PARTICULAR POINT IN TIME AS YOU'RE WAITING YOUR TURN, WE'LL ASK YOU TO MOVE TO ROOM 204, IF YOU COULD, RIGHT NEXT DOOR HERE.

JUST TO REFRESH THE COUNCIL'S MIND HERE, WE HAVE TWO OPEN SPOTS ON THE WHARVES BOARD.

BOTH OF THESE SPOTS ARE UP FOR REAPPOINTMENT.

IF COUNCIL WOULD LACK, THEY CAN PUT NEW INDIVIDUALS INTO THOSE SPOTS, BUT BOTH OF THOSE SPOTS ARE OPEN FOR REAPPOINTMENTS.

ON THE PLANNING COMMISSION, WE HAVE TWO SPOTS THAT ARE VACANT, ONE TERM LIMITED, ONE VACANT, AND THAT THOSE TWO SPOTS WILL NEED TO BE FILLED.

THEN WE HAVE ONE REAPPOINTMENT THAT IF COUNCIL WANTS TO REAPPOINT, WE HAVE ONE REAPPOINTMENT ON THAT.

I WOULD REQUEST COUNCIL THAT ONCE WE DO OUR INTERVIEWS, IF YOU COULD HAVE YOUR RANKINGS TO JANELLE BY NOON OF SEPTEMBER 21ST, THAT'S OUR NEXT MEETING DATE.

IF YOU CAN HAVE YOUR RANKINGS TO JANELLE BY NOON OF SEPTEMBER 21ST.

JANELLE HAS ALSO ASKED THAT AS YOU RANK YOUR CANDIDATES SO THAT WE'RE ALL CLEAR ON THIS, AS YOU RANK YOUR CLIENT CANDIDATES, PUT YOUR HIGHEST NUMBER.

JANELLE, YOU WANT TO TELL THEM WHAT YOU WOULD LIKE?

>> YES. THERE WAS SOME CONFUSION LAST TIME WHERE WE HAD THE NUMBER 1 PERSON, YOU SCORED A ONE.

THEY ENDED UP WITH THE LOWEST SCORE WHICH WAS NOT WHAT WAS INTENDED.

FOR THE WHARVES BOARD, YOU HAVE FOUR APPLICANTS.

YOUR BEST CHOICE, YOU'RE GOING TO GIVE A NUMBER 4 AND WE'RE GOING THE OPPOSITE WAY.

>> [INAUDIBLE] WITH 1 BEING LAST, 4 BEING BEST.

[00:25:02]

>> BE AT THE TOP. WE HAVE FIVE CANDIDATES FOR PLANNING COMMISSION.

YOUR TOP CANDIDATE WOULD BE RANKED FIVE AND YOUR LOWEST WOULD BE RANKED ONE.

>> VERY GOOD. GENTLEMEN AND LADIES, THOSE THAT ARE INTERVIEWING, WE'RE GOING TO START WITH THE INTERVIEWS.

WE'RE GOING TO START WITH WHARVES BOARD AND WE'RE GOING TO TAKE IT IN THE ORDER OF THE WAY THE APPLICATIONS WERE RECEIVED.

WE'LL START WITH THE WHARVES BOARD INTERVIEW AND THAT WILL BE HARRY MAXWELL.

IF ALL THE OTHER CANDIDATES THAT WOULD BE INTERVIEWING, IF YOU COULD GO TO ROOM 204, PLEASE.

[NOISE] [BACKGROUND]

>> HAVE A GREAT TIME. [LAUGHTER].

>> WE'LL SEE YOU IN A SECOND.

>> HARRY, COME ON FORWARD HERE.

HARRY, THANK YOU FOR BEING HERE.

YOU'VE BEEN THROUGH THESE INTERVIEWS BEFORE.

MR. MAXWELL IS UP FOR REAPPOINTMENT AT THE WARDS BOARD, WE'LL GIVE YOU A COUPLE OF MINUTES, HARRY, IF YOU WOULD LIKE TO MAKE SOME INTRODUCTORY REMARKS AND THEN WE'LL OPEN TO QUESTIONS.

>> WELL, THANK YOU. GOOD MORNING, EVERYBODY.

THANK YOU FOR ALLOWING US TO INTERVIEW THIS MORNING.

I KNOW YOU ALL HAVE A BUSY DAY, SO THANK YOU.

AS FAR AS ABOUT MYSELF, I'M A CPA, BEEN PRACTICING PUBLIC ACCOUNTING AT GALVESTON FOR OVER 40 YEARS.

I'M A PARTNER IN THE LOCAL FIRM HAMLETS AND THEN BR XENA OR OFFICES DOWNTOWN AT 2,200 MARKET STREET.

GREW UP IN GALVESTON, WENT O'CONNELL.

MY WIFE WENT TO BALHI MARRIED, HAD OUR FAMILY RAISED IT HERE.

MY SON AND MY GRANDSON WHO LIVE IN GALVESTON.

I'M IMPLANTED IN THE COMMUNITY AND AT THIS POINT I DON'T THINK I'M GOING ANYWHERE.

WITH THAT, I WANT TO BE REAPPOINTED TO THE WARS BOARD BECAUSE I THINK THERE'S SO MUCH GOOD GOING ON OVER THERE AND IT'S EXCITING.

I'M A FIRM BELIEVER IN THE MASTER PLAN.

I THINK IT WAS A GOOD DOCUMENT, AT FIRST I COULDN'T BELIEVE WE SPENT THAT MUCH MONEY ON IT AND WHEN YOU LOOK AT IT, ALL THE MARKETING STUDIES AND THE ENGINEERING AND THE MEETINGS WITH THE CITIZENS AND CONCERNED PARTNERS, IT CAME OUT BETTER THAN I EXPECTED.

IT'S STILL WE TAKE IT OUT, WE DUSTED OFF, WE'D LOOK AT IT AND IT STILL HOLDS TRUE.

WE HAVE THE WESTIN CARGO PROJECT GOING ON, WE HAVE THE INTERNAL ROAD, WE HAVE BATTLESHIP TEXAS, WE HAVE PURE 16 DEVELOPMENT.

DO WE HAVE WHAT'S GOING ON A CRUISE TERMINAL 25? IT'S A LOT GOING ON AND AT THE SAME TIME, WE'VE MANAGED TO BOUNCE BACK FROM COVID.

I THINK 2023 IS GOING TO BE A RECORD YEAR FOR REVENUES AND NET INCOME EXCEEDING EVERYONE'S EXPECTATIONS AND SO I'D LIKE TO CONTINUE IT.

I'VE THOROUGHLY ENJOYED THE LAST TWO YEARS AS CHAIRMAN.

WE'VE WE'VE GOTTEN A LOT ACCOMPLISHED AND WE HAVE A LOT TO DO AND WITH THAT I JUST ASKED YOU ANY QUESTIONS. I CAN ANSWER.

>> COUNCIL MEMBERS ANY QUESTIONS? YES, DAVID.

>> HARRY, REMIND ME HOW LONG HAVE YOU BEEN ON BOARD?

>> I WAS APPOINTED TO JASON LEVY RESIGNED HIS SPOT AND SO THERE WAS A SPACE UP AND I TOOK JASON'S SPOT AND THEN I WAS APPOINTED ONCE AFTER THAT.

I DON'T KNOW HOW MANY YEARS.

>> YOU'VE HAVE BEEN REAPPOINTED ONE TIME? CITY SECRETARY SITTING RIGHT HERE, I PROBABLY COULD HAVE HAD. [LAUGHTER]

>> HE WAS APPOINTED IN JUNE OF 2018.

>> YEAH. THAT WAS FOR JASON'S [OVERLAPPING]

>> THANK YOU. THAT'S GREAT.

>> ANY FURTHER QUESTIONS FOR MR. MAXWELL?

>> YES, DAVID.

>> MR. MAXWELL, WHAT DO YOU BELIEVE IS THE GREATEST CHALLENGE FACING THE PORT?

>> INFRASTRUCTURE. YOU-ALL HAVE, 53RD STREET, 45TH STREET, 23RD STREET, WE HAVE A BUNCH OF TAZ HEADS THAT NEED WORK AND SO FINDING THE REVENUE TO DO THAT WORK IS ESSENTIAL, AND WE HAVE TO BASICALLY LEVERAGE CARGO, I MEAN, LEVERAGED CREWS TO DO THOSE IMPROVEMENTS AND THAT'S WHAT WE'RE DOING.

WE HOPE WE'RE DOING. I DON'T WANT TO BE LIKE THE GUY HAS GOT TO KNOW HIT ARE GOING IN AND SAY YOU ONLY HAVE 6 YEARS LEFT, BUT TEXT DOT VOTING AT THE END OF THIS MONTH ON AN ALLOCATION OF A $200 MILLION TO TEXAS PORTS AND WE'RE UP FOR NICE CHUNK OF IT.

[00:30:05]

ONE OF THOSE PROJECTS, THERE'S THREE PROJECTS THEY'VE RECOMMENDED FOR GALVESTON AND ONE OF THEM IS FILLING IN PUTTING A NEW BIRTH ON THE T HEADS ON THE WEST END AND IT'S A 50 MILLION IN PROJECT AND WE HAVE TO COME UP WITH A 25% MATCH AND SO ONE OF THESE THINGS THAT THIS BOND ISSUE IS GOING TO ALLOW US TO DO IS GET OUR CASH RESERVES IN PLACE TO PUT THAT MATCH UP, AND SO THAT WOULD KICK START THE WEST END.

I MEAN, THAT WOULD BE WHAT WE NEED.

NOW THE OTHER TWO PROJECTS, ONE IS THE INTERIOR ROADWAY, I THINK FROM 37TH STREET OR TERMINAL 28, THAT SECTION I THINK IT'S CALLED SECTION 3 MAYBE.

THEN ALSO THE WALKWAY FROM 25TH OVER HARBOR SIDE.

THOSE THREE PROJECTS ARE UP FOR CONSIDERATION IN TWO WEEKS AND WE'RE HOPEFUL AND SO THAT'S THAT'S WHAT I MEAN WHEN WE SAY WE TAKE WE TAKE OUR BEST-PERFORMING ASSETS, WHICH ARE CRUZ AND WE LEVERAGE THEM AND WE TRY TO DO THE INFRASTRUCTURE AND IT ALWAYS HELPS WHEN WE CAN GET SO EXPENSIVE.

IT'S HARD TO DO IT WITHOUT SOME HELP.

BUT THAT'S THE GOAL.

THAT'S OUR CHALLENGE.

>> ANY FURTHER QUESTIONS FOR MR. MAXWELL. YES MIKE.

>> HI, HOW YOU DOING?

>> GOOD.

>> DO YOU THINK THE PORT IS DIVERSIFIED, BALANCED EQUALLY? DO YOU FEEL IT'S DIVERSIFIED PROPERLY?

>> YES, I DO. I THINK YOU LOOK AT OUR MIX AND OUR BREAD AND BUTTER IS GOING TO BE CRUISERS.

THERE'S NO QUESTION ABOUT IT.

BUT SECOND BIGGEST ITEM IS LAY DOCKAGE.

DURING COVID, NOT ONLY DO WE HAVE CARGO, BUT WE HAD $6 MILLION OF REVENUE FROM LATE DOCKETS.

I THINK BETWEEN RETAIL BETWEEN THE LAMPREYS LEASE AND THE LEASES OVER PELICAN ISLAND AND I THINK WE'RE DIVERSIFIED.

I THINK WE HAVE TO, WE HAVE TO DEPLOY OUR RESOURCES WHERE WE CAN GET A RETURN AND TAKE THAT MONEY AND USE IT.

OTHER PLACES WHERE WE DON'T GET THAT BIG OF RETURN.

>> VERY GOOD. HARRY, I HAVE A QUESTION, HAVE YOU SERVED ON OTHER COMMITTEES OR ORGANIZATIONS?

>> BEFORE THE WARDS BOARD, I WAS ON THE CITY FINANCE COMMITTEE RIGHT AFTER HURRICANE IKE AND SERVE THERE AND THEN SERVE FINISHED UP AS CHAIRMAN AND THEN WHEN I WAS TERMINATED AND LIMITED ON THAT, I WENT TO APPLY FOR THE WARS BOARD, BUT I'VE SERVED SEEMED LIKE FOREVER ON THE FINANCE COMMITTEE.

I DON'T THINK IT WAS, BUT IT SEEMED LIKE IT WAS A CHALLENGING TIME AFTER ICC, SO YES, AND THAT'S THE ONLY TWO CITY BOARDS I CAN THINK OF THAT. I'M SORRY. NO.

>> VERY GOOD. ANY FURTHER QUESTIONS?

>> YES, SIR. WHAT IF A CITIZEN ASKED YOU WHAT WAS THE BIGGEST ADVANTAGE TO THE CITIZENS OF GALVESTON THAT THE PORT OFFERS? WHAT WOULD THAT BE? HOW WOULD YOU JUSTIFY WHAT WE DO AT THE PORT TO FOREIGN CITIZENS?

>> TO ME IT WAS AN EYE-OPENING EXPERIENCE ALSO BECAUSE AS THE GALVESTON AND I'M ALWAYS CRITICAL A TOURIST AND THINGS THAT DON'T REALLY AFFECT ME.

I JUST WANT TO BE LEFT ALONE IN MY NEIGHBORHOOD.

BUT IT'S SUCH A BIG ECONOMIC ENGINE.

IT JUST THE HATE TO USE THE WORD TRICKLE-DOWN, BUT ALL THE JOBS IT CREATES, WHETHER IT'S PILOTS, LINE HANDLERS, TUGS, SUPPLY BOATS, PARKING, RESTAURANTS, HOTELS, THESE GUYS, THE GUYS ON THE SHIP THAT COME INTO PORT, THIS IS THEIR HOMETOWN.

YOU CAN SEE THEM AT WALMART TARGET.

THEY'RE PAYING SALES TAX.

I MEAN, THEY'RE CONTRIBUTING TO THE ECONOMY.

THE CRUISE INDUSTRY IS CONTRIBUTING.

YOU CAN ASPECTS YOU CAN ASK OTHER BUSINESSES IN TOWN AND WHEN THE WHEN THE CREWS WEREN'T CREWS AND THEY'RE NOT WALKING DOWNTOWN GALVESTON, JUST AROUND MY OFFICE AND I'D HEAR GUY SAYING, WHEN YOU AREN'T GOING TO CRUISE AGAIN, WHAT'S CREWS COMING BACK? IT AFFECTS, IT'S A POSITIVE AND IT'S A GOOD CARGO FOR US BECAUSE ONE OF THE THINGS IN THE CARGO BUSINESS, YOU NEED TO HAVE LAND AND WE DON'T HAVE THAT MUCH LAND ON HARBOR SIDE.

WELL, OUR CARGO IS OR PASSENGERS AND WE CAN FIT WE CAN GET THOSE PASSENGERS IN AND OFF THE SHIP AND INTO THE HOTELS AND OUT OF HERE.

IT'S A GOOD, A GOOD FIT FOR THE PORT OF GALVESTON.

[00:35:04]

I THINK IT'S BENEFICIAL.

I THINK YOU COULD ASK THE HOTEL PEOPLE, THE RESTAURANT PEOPLE, THE PEOPLE THAT PAY TAXES HERE, PROPERTY TAXES.

I THINK YOU CAN SEE, AND I HOPE THIS INCREASES, BUT OUR PAYMENT TO THE CITIES TO BE 180 GRAND, I THINK NEXT YEAR IS GOING TO BE AROUND 3 MILLION WHEN YOU ADD UP WHAT WE PAID HER AND I THINK IT SHOULD GO OUT AND IT WILL GO UP.

WE JUST NEED TO GROW THE BUSINESS.

I THINK THE KEY TO THE PORT IS GROWING THE BUSINESS.

>> ONE MORE QUESTION. OVER THE TIME I'VE SERVED ON COUNCIL HERE, WE HAVE HAD SOME ROCKY RELATIONSHIPS WITH OUR PARTNERS BEING THE PARK BOARD AND THE PORT AND COMMUNICATION IN DAY-TO-DAY BUSINESS, WHAT WOULD YOU DO OVER YOUR NEXT TERM TO TRY TO MEND THAT RELATIONSHIP AND IMPROVE COMMUNICATIONS?

>> I'VE BEEN HEARING THAT FOR AWHILE [LAUGHTER] AND I THINK I'VE TRIED AND CORRECT IT.

I THINK IT STARTS AT THE TOP.

I THINK YOU'LL HAVE A GOOD IDEA ABOUT THE COUNCIL MEETING WITH THE BOARD OF TRUSTEES OF THE WARDS AND SETTING THE TONE, AND WE WORK TOGETHER AND SO WE EXPECT OUR TOP ADMINISTRATORS AT BOTH PLACES TO WORK TOGETHER.

I THINK WE SHOULD BASICALLY SET THE TONE AND DO THAT.

MAYBE IT'LL GO HOPEFULLY THEY'LL GET THE MESSAGE.

>> MARIE AND MIKE.

>> I JUST WANTED TO SAY I THINK YOU'VE DONE A GREAT JOB AS CHAIRMAN.

>>> THANK YOU.

>> MY UNDERSTANDING IS THUS FAR THIS YEAR, THE PORT HAS GIVEN $639,905 TO THIS CITY.

>> IF YOU SAY SO I BELIEVE YOU [LAUGHTER]

>> WELL, AND THAT'S BY POINT TO THIS QUESTION OR COMMENT.

I THINK THE PORT IS EXTREMELY TRANSPARENT.

THE FACT THAT YOU CAN GO ON THE PORT SIDE AND FINE.

AUDIT PLANS, PAST AUDITS, ALL THE INFORMATION THAT YOU NEED TO LOOK AT THE FINANCIAL SITUATION.

AND THEN THAT WAY WE MIGHT BE ABLE TO LEARN A LITTLE BIT MORE ABOUT OUR TRANSPARENCY.

SO WHEN YOU FIRST CAME ON THE BOARD, WHAT THE PORT CONTRIBUTED TO THE CITY WAS 198,000 AND LOAD.

>> WHATEVER THAT NUMBER.

>> THAT WAS IT.

>> A PILOT PAYMENT.

>> NOW ON 23, THEY'RE EXPECTING IT TO BE 1.2 MILLION.

>> WHAT HAPPENED IS THAT THE PARKING FEES THAT THEY DIDN'T KICK IN ALL YEAR AND THEN THE PEOPLE WHO HAD RESERVATIONS ALREADY PREPAID, THEY DIDN'T PAY IT.

WHEN IT'S FULLY OPERATIONAL, IT'S GOING TO BE SUBSTANTIAL.

>> THREE MILLION OR SOMETHING.

>> WITH THE SALES TAX WE PAY SALES TAX ON THAT PARKING TOO, PART OF GOES TO THE CITY.

>> ONE OF THE QUESTIONS THAT I'VE SEEN ONLINE SINCE OUR LAST MEETING WHEN WE FAILED TO APPROVE THE BOND, IS PEOPLE ARE SAYING, HOW IS THE BOND PAID SINCE YOU DON'T HAVE THE ABILITY TO TAX? AND COULD YOU EXPLAIN THAT? I GAVE THE ANSWER.

IT'S THE PORT BUSINESS THAT PAYS BACK, BUT YOU COULD PROBABLY ANSWERED THAT A LITTLE MORE OUT [INAUDIBLE].

>> IT'S THE REVENUE FROM CRUISE TERMINAL 25 AND 28.

IT'S OFTEN CARNIVAL IN ANY AFFILIATE OF CARNIVAL, WHETHER IT BE A PRINCESS OR ANYBODY, WE GET IT BACK THROUGH A COST RECOVERY FEE.

ONCE THE PROJECT, WE KNOW THE TOTAL COST OF THE PROJECT, CARNIVALS AGREED TO PAY 83% OF THE COST BACK THROUGH A COST RECOVERY FEE.

EVERY TIME A PASSENGER GETS ON THEIR CHARGE TO FEED, THAT FEE GOES TO US TO PAY THE BONDS.

SO WE'RE RESPONSIBLE FOR 17% OF OUR INCOME FROM CRUZ OPERATIONS AND THEY PICK UP 83%.

>> ONE OF THE OTHER THINGS AND I KNOW RECENTLY I JUST READ THROUGH ONE OF YOUR PRESS RELEASES THAT YOU'VE RECEIVED A GRANT FOR THE ROADS OR STREET, ASIDE FROM THE ONE THAT'S COMING UP FOR THAT.

>> THE ONE ON 31ST OR 33RD STREET? YES WE DID.

AND THAT'S TO BASICALLY TO PUT A TRAFFIC LIGHT AND IT WILL GO INTO THE NEIGHBORHOOD.

BUT THE BEAUTIFICATION, I THINK OVER 300000 TO DO THE STUDY,

[00:40:07]

BUT IT'S COMING THAT'S THE STEP 1.

YES, WE DID ROGER.

WORK REAL HARD AND GETTING THAT AND IT'S HAPPENING.

SO, WE JUST WERE NOTIFIED OF THAT.

>> I'M GOING TO ASK A QUESTION. I DON'T KNOW IF YOU HAVE CONTACT WITH THESE PEOPLE OR NOT, BUT HOW DOES THE ILA FEEL ABOUT THE CRUISES COMING IN?

>> WELL, [LAUGHTER] ALL YOU GOT TO DO IS LOOK AT THE LABOR SITUATION WHEN THERE'S THREE CRUISE SHIPS IN IT HAPPENS TO BE A BANANA BOAT OR EVERYBODY'S WORKING THE CRUISE SHIP.

I WOULD THINK EXCEPT FOR MAYBE THE CLERKS AND CHECKERS WHO DON'T HAVE AS MANY PEOPLE WORK IN A CRUISE SHIP AS THEY DO A CARGO SHIP.

I WOULD THINK REGULAR ILA DOCK WORKER WOULD BE HAPPY.

HAVEN'T TALKED TO THEM BUT THEY LINE UP TO WORK THE CRUISE SHIPS.

A MATTER OF FACT, I DON'T KNOW HOW THE PROGRAM IS GONE, BUT I THINK THEY'VE REACHED OUT TO PAUL HIGH STUDENTS THAT ARE OVER 18 WHEN WE HAVE THREE SHIPS IN PORT AND WE CAN'T GET ENOUGH LABOR TO HIRE HIGH SCHOOL STUDENTS AS CASUAL LABOR AND WORK THE SHIPS.

OUR MAN HOURS ARE UP. YOU CAN LOOK AT THE LABOR HOURS.

>> YES. MARIE.

>> I WANT TO MAKE ONE MORE COMMENT ON THAT BECAUSE MY RIGHT-HAND PERSON AT HOME, HER HUSBAND HAPPENS TO WORK FOR THE ILA AND HE REGULARLY PUTS IN 18 HOURS A DAY A STANDARD HOW MUCH SHE WORKS.

BUT IT'S ALSO WHEN THEY'RE INVOLVED WITH THE CRUISE SHIPS.

NOT ONLY DO THEY HAVE THEIR INCOME HAVING TAKEN IN CRUISE, THEY GET TIPS AS WELL.

THEY'RE MAKING PERHAPS MORE MONEY THAN THEY'VE EVER HAD AN OPPORTUNITY.

>> THEY THEY DO MAKE SUBSTANTIAL TIPS AND I THINK THAT'S WHY THERE'S A DEMAND TO WORK THE CRUISE SHIP AND THE OTHER ONES HAVE A LITTLE PROBLEM FILLING UP, BUT YEAH.

>> VERY GOOD. ANY FURTHER QUESTIONS AT ALL? I WANTED TO JUST MAKE A COMMENT.

HARRY I'VE BEEN IN THE LIAISON FOR A LITTLE WHILE OVER AT THE PORT.

I WANT TO THANK YOU FOR YOUR SERVICE OVER THERE, I THINK YOU'VE ALWAYS BEEN A GOOD CHAIRMAN OVER THERE AND IT'S BEEN THROUGH SOME ROCKY TIMES AT THE PORT, BUT THE PORT IS NOW DOING EXTREMELY WELL.

AND MR. MAXWELL'S DEMEANOR AND HIS TRANSPARENCY, AND ALWAYS OPEN FOR QUESTIONS AND COMMUNICATION FROM ANYBODY IN THE COMMUNITY OR ANYONE ELSE.

HARRY, THANK YOU FOR YOUR SERVICE.

>> I APPRECIATE IT AND THANK YOU ALL FOR THE OPPORTUNITY TO INTERVIEW.

>> WE'RE GOING TO MOVE TO MR. RICHARD MOORE IF WE COULD.

>> I'M GOING TO RUN AND GET COFFEE IF YOU COULD HOLD FOR TWO MINUTES [OVERLAPPING]

>> SURE COME RIGHT ON IN.

>> I HAVEN'T STOPPED THE HALF WAY ON THE LAST ONE.

>> THAT'S GOOD, COFFEE, MCDONALD'S

>> TAKE A TWO-THREE-MINUTE BREAK.

YOU'RE GOING TO TWO PEOPLE [LAUGHTER]

>> IS HE REBATTLING EVERYTHING? [OVERLAPPING]

>> MR. MORE, COME ON IN, SIR.

>> THANK YOU. RIGHT IN HERE?

>> YES, SIR IF YOU WOULD.

>> I KNOW WHAT THIS IS. MOST OF US FORGOT.

>> MINE HAS A BUNCH OF HOLES IN THEM.

>> WE HAVE TWO COUNCIL MEMBERS THAT JUST STEPPED OUT FOR A SHORT TIME, BUT WE'RE GOING TO LET THEM COME BACK BEFORE WE START, BUT SO GLAD TO HAVE YOU HERE.

>> WELL, THANK YOU. IT'S NICE TO BE HERE.

NICE TO BE ALIVE. [LAUGHTER]

>> I BET IT IS.

>> WITH THE HOPE OF RAIN.

>> YEAH. WE WERE GETTING RAIN, IS IT STILL RAINING OUT THERE?

>> IT WAS DRIZZLING.

JUST QUITE A LIGHT SHOW LAST NIGHT.

>> OH, YES.

>> VERY IMPRESSIVE.

>> MORE THUNDER AND LIGHTNING THAN THE RAIN.

[NOISE]

>> YOU MAY HAVE HEARD, RICHARD, WE'RE DOING THE INTERVIEWS IN THE ORDER WE RECEIVE THE APPLICATION.

GOT TO KEEP THAT GOING, WE HAVE FOUR OF THEM FOR THE WARS BOARD HERE.

WE'LL MAKE OUR SELECTIONS ON SEPTEMBER 21ST.

WE'LL BE RANKING THE CANDIDATES AS YOU PROBABLY KNOW, EACH COUNCIL MEMBER WILL THEN FROM THE INTERVIEWS RANK THEIR CANDIDATES AND THEN GIVE THOSE RANKINGS TO JANELLE,

[00:45:04]

AND WE'LL MAKE THOSE NOMINATIONS IN ORDER OF HOW THEY ARE RANKED BY THE COUNCIL MEMBERS IN.

>> WELL, IT LOOKS LIKE THEY WENT ACROSS THE STREET TO WENDY, SO VERY GOOD.

MR. MOORE, THANK YOU FOR BEING HERE.

WHAT WE'LL DO IS LET YOU HAVE A COUPLE OF MINUTES FOR AN INTRODUCTION IF YOU'D LIKE, AND THEN WE'LL OPEN IT UP FOR THE COUNCIL QUESTIONS.

>> WELL, LET ME SAY FIRST, MY NAME IS RICHARD MOORE.

I LIVE AT 178 SAN MARINO DRIVE IN GALVESTON, AND WE'VE BEEN LIVING IN THAT LOCATION FOR ABOUT FIVE YEARS, ROUGHLY.

I'VE BEEN IN GALVESTON FOR ABOUT 30 YEARS.

I TOOK A LITTLE SABBATICAL DURING THAT TIME.

MY WIFE AND I OPENED A BED AND BREAKFAST IN GOLIA TO SEE WHAT THAT LIFE WAS LIKE.

WE SCURRIED BACK PRETTY QUICK.

NOW WE SPENT ABOUT SIX YEARS DOING THAT AND CAME BACK.

OUR KIDS DIDN'T COME TO SEE US OFTEN ENOUGH, SO WE DECIDED WE NEEDED TO COME BACK HERE, AND I'VE ALWAYS ENJOYED LIVING IN THE COMMUNITY AND PARTICIPATING IN THE COMMUNITY.

ONE OF THE REASONS I'M INTERESTED IN THIS TO IS TO SEE IF I CAN GRADUATE OFF OF THE POLICE PENSION BOARD.

BUT THAT MAY NOT BE THE CASE NOW, I DON'T MIND CONTINUING SERVING.

BUT I GOT TO THINKING A COUPLE OF, I THINK IT WAS ABOUT A MONTH-AND-A-HALF AGO OR TWO MONTHS AGO WHEN I READ THIS ARTICLE IN THE PAPER ABOUT THE WARS BOARD WANTING TO GET A $50 MILLION LOAN AND THAT SET ME BACK BECAUSE IN MY EXPERIENCE, $50 MILLION IS ON THE VERY HIGH SIDE OF A LOAN VERSUS GOING OUT THROUGH A PROCESS AND OBTAINING BONDS.

BUT THANKFULLY THAT WAS QUICKLY TURNED AROUND AND THEY STARTED TARGETING BONDS.

I GOT TO LOOKING BACK ABOUT WHY THE LOAN WAS THOUGHT ABOUT IN THE FIRST PLACE AND I'M NOT SURE I HAVE THE EXACT STORY CORRECT.

BUT IT SEEMS LIKE THIS PROJECT AT TERMINAL 25 STARTED AT A LOWER AMOUNT, AND IT'S NOW JUST ABOUT, I THINK DOUBLED.

I'M NOT SURE.

BUT I THOUGHT THAT THE WHOLE SCENARIO LOOK LIKE WASN'T VERY WELL-PLANNED AND THOUGHT OUT.

I HAVE EXPERIENCE IN DEALING WITH VERY LARGE EXPENSIVE PROJECTS AND STUFF LIKE THAT, AND I THOUGHT MAYBE I COULD BE OF SOME BENEFIT TO THE WARS IF I PARTICIPATED ON THE BOARD.

I THINK YOU HAVE TO LOOK TO THE BOARD FOR LEADERSHIP AND ACCOUNTABILITY IN THE BOARD.

THE BOARD IS THE KEY.

THEY HAVE TO BE THE ONES THAT ARE TAKING CARE OF BUSINESS.

THEY DON'T PHYSICALLY DO IT, BUT THEY MAKE SURE THAT THEY HOLD THE ADMINISTRATION ACCOUNTABLE.

>> VERY GOOD.

>> THAT'S THEIR JOB.

>> THANK YOU VERY MUCH.

COUNCIL, ANY QUESTIONS FOR MR. MOORE? DAVID?

>> RICHARD. HI. THANKS FOR BEING HERE.

I'VE KNOWN MR. MOORE FOR QUITE AWHILE, HE'S ONE OF MY CONSTITUENTS AND IT'S POSSIBLE I SEE YOUR DAUGHTER MORE OFTEN THAN YOU DO. [OVERLAPPING]

>> SHE IS VERY LUCKY.

>> SHE'S THE VICE CHAIR OF OUR LANDMARK COMMISSION, OF COURSE.

THANK YOU VERY MUCH FOR APPLYING.

YOU SERVE ON THE, IS IT POLICE PENSION BOARD TODAY?

>> ARE THERE OTHER COMMITTEES THAT YOU'VE SERVED ON IN THE CITY?

>> ACTUALLY, I WAS ON THE ORIGINAL CITY FINANCE COMMITTEE.

I THINK ROGER STARTED IT.

I'M PRETTY SURE IT STARTED BY ROGER KROGER YEARS AGO, AND I'VE SERVED ON IT.

THEN THEY SUNSET AT THAT VERSION OF IT AND RE-ESTABLISHED ANOTHER VERSION, AND I SERVED ON THAT ONE AND I THINK IT'S THE SAME VERSION THAT'S STILL IN EXISTENCE TODAY.

I CAN'T THINK OF ALL.

I'VE BEEN ON VARIOUS AND SUNDRY COMMITTEES AND THINGS LIKE THAT, AND WORKED WITH THE CITY.

IN MY ROLE AT UTMB, AS THE CHIEF BUSINESS OFFICER, I'VE WORKED WITH THE CITY A LOT, BECAUSE WE'RE VERY BIG NEIGHBORS IN A SMALL NEIGHBORHOOD, AND WE HAD A LOT OF THINGS GOING ON TOGETHER.

>> WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING THE BOARD TODAY?

>> WELL, FIRST OF ALL, LET ME SAY THAT SINCE THAT TIME I IDENTIFIED THE ISSUE THAT GOT MY ATTENTION ABOUT THE NEED FOR SOME RIGOR, THINGS I THINK ARE COMING TOGETHER.

I WANT TO SAY THAT IT LOOKS LIKE TO ME AT A DISTANCE THAT THINGS ARE COMING TOGETHER.

[00:50:06]

I ALSO THINK THAT THE COUNCIL, THIS IS IN THE PAST YEAR-AND-A-HALF, HAS DONE A LOT BETTER JOB OF INTERACTING MORE APPROPRIATELY WITH SOME OF THE VERY LARGE ENTITIES LIKE THE WARS BOARD AND THE PARK'S BOARD.

BECAUSE JUST LIKE IT'S A BOARD'S RESPONSIBILITY TO SEE THAT THINGS ARE RUNNING RIGHT, IT'S THE COUNCIL AND THE COUNCIL MEMBER'S RESPONSIBILITY TO SEE THAT THESE BOARDS ARE RUNNING RIGHT AND DOING WHAT THEY SHOULD DO.

I ACKNOWLEDGE THAT, EVEN THOUGH IT WAS AGONIZING, I'M SURE FOR A LOT OF Y'ALL, HAVING THE BONDS NOT GO THROUGH LAST TIME, I THINK THAT'S THE FIRST TIME EVER SEEN THAT DONE.

I THOUGHT THAT WAS A WAY TO SEND A CLEAR SIGNAL IF I DON'T KNOW THAT THAT WAS WHAT WAS INTENDED, BUT IT'S A WAY TO SEND A SIGNAL THAT IT IS UP TO THE CITY COUNCIL.

THAT'S OUR PROPERTY OVER THERE, WE LOOK TO YOU ALL TO MAKE SURE THAT IT'S GOING.

WHAT I THINK NEEDS TO BE DONE, I THINK THEY'RE ON A GOOD TRACK, THEY'VE DONE A GREAT JOB WITH THE CRUISE BUSINESS.

I THINK IT'S IMPORTANT NOW, IF THEY'RE NOT ALREADY DEEP INTO IT, TO START LOOKING AT A NON-CRUISE BUSINESS, AND I DON'T KNOW WHAT THEIR PLANS ARE AND I HAVEN'T LOOKED, BUT I THINK THAT ON THE WEST END OF THE WARS, THERE'S A LOT OF OPPORTUNITY, AND I THINK WITH SOME OF THE STUFF GOING ON NATIONALLY, WITH MONEY BEING POURED INTO INFRASTRUCTURE, MONEY BEING POURED INTO NEW ENERGY PROJECTS, I THINK THE PORT COULD GET QUITE A BIT OF BUSINESS, THEY ALREADY DO THE WINDMILLS.

I THINK THERE'S A LOT MORE OPPORTUNITY LIKE THAT.

NOT NECESSARILY WINDMILLS, BUT IT COULD BE ANYTHING AS LONG AS IT'S APPLICABLE, AND SO I'D LIKE TO SEE THEM GET THAT AREA OF THE PEERS ORGANIZED THE WAY IT NEEDS TO BE, AND TAKE ADVANTAGE OF THE THINGS.

I GUESS IT'S ALMOST $2 TRILLION THAT THE GOVERNMENT IS PUTTING INTO REDOING THE NATION'S INFRASTRUCTURE AND MOVING US TOWARD NEW ENERGY.

>> WELL AS YOU KNOW, IT SOMETIMES IT TAKES A LITTLE WHILE TO TURN THESE TANKERS?

>> YES. [LAUGHTER]

>> WE ARE IN THE PROCESS I THINK YOU'RE RIGHT, THAT COUNCIL HAS DONE A LOT OF WORK IN THE LAST YEAR TO DO THAT AND PART OF IT FALLS ON US FOR NOT PROVIDING THE OVERSIGHT, DEMANDING THE OVERSIGHT AND THE COMMUNICATION THAT HAS PLAGUED BOTH OUR STAFF OVER THE LAST FEW YEARS.

I WANTED EVERY APPLICANT TO KNOW THAT, I THINK COUNCIL IS GOING TO BE MORE VIGILANT ABOUT THIS IN COMING YEARS AND WE WILL HAVE MORE JOINT MEETINGS, SO THAT WE CAN CLEAR THE AIR ON THESE THINGS BEFORE THEY COME UP.

>> I STUMBLED, I DIDN'T READ THE AGENDA VERY CLOSELY UNTIL THIS MORNING AND THIS NEW DEBT ISSUANCE PROCEDURE, SOMETHING THAT I DON'T KNOW THAT YOU DIDN'T ALREADY HAVE THIS, BUT IT CERTAINLY IS WELL DONE AND IT SHOULD BE FOLLOWED.

THAT'S A GOOD PROCESS.

>> VERY GOOD. ANY OTHER QUESTIONS, AM I?

>> HI, THANKS FOR TURNING YOUR APPLICATION THERE.

YOU HAD MENTIONED EARLY ON THAT YOU HAD MANAGED BIG PROJECTS OR HAVE EXPERIENCED WITH BIGGER PROJECTS.

COULD YOU GO INTO DETAIL ON THAT EXPERIENCE?

>> WELL, I CAME TO UTMB IN '86.

I CAN'T SPECIFICALLY THINK OF ALL THE PROJECTS, BUT THERE'S BEEN PROBABLY.

LET ME PUT IT THIS WAY, WHEN I CAME THERE WAS ABOUT FOUR MILLION GROSS SQUARE FOOT AND WHEN I RETIRED, THERE'S LITTLE OVER SEVEN MILLION, SO WE PUT A LOT OF COMPLICATED BUILDINGS.

ONE OF THE MOST COMPLICATED FORCES, THE GALVESTON NATIONAL LABORATORY.

BUT IT'S A PROCESS IN AND OF ITSELF AND I ADMIT TO BEING A PROCESS PERSON.

I LIKE PROCESS AND PROCESS IMPROVEMENT.

IF YOU FOLLOW THE RIGHT STEPS, YOU GET GOING CORRECTLY AND YOU DON'T HAVE SNAFUS.

>> MR. [INAUDIBLE] GOOD TO SEE YOU.

>> GOOD TO SEE YOU.

[00:55:01]

>> YOU MENTIONED THE NATIONAL LABORATORY.

WHAT WAS THE BUDGET FOR THAT PROJECT?

>> I THINK THE BUDGET ENDED UP AT 165 ALL IN WITH EQUIPMENT.

THE GRANT FROM THE NIH WAS 110 MILLION.

THE DIFFERENCE WAS MADE UP IN VARIOUS AND SUNDRY WAYS.

THE OTHER ONE THAT WAS COMPLICATED WAS THE JEANNIE SEELY HOSPITAL THAT I HAD RETIRED JUST BEFORE THEY STARTED CONSTRUCTION.

BUT RIGHT AFTER IKE FOR AFTER I CAME BACK BECAUSE IN THEIR WISDOM, THEY HAD RELEASED THE CFO AND SO THEY STARTED THINKING, I GUESS, I REALIZED THEY HAD AN LEGISLATIVE SESSION COMING UP.

ANYWAY, I CAME BACK FOR ABOUT HALF A YEAR AND WORK THROUGH THAT AND WORKED WITH CRAIG ALLEN, WHO IS AS MUCH RESPONSIBILITY AS ANYBODY FOR PUTTING TOGETHER THE FUNDING.

OF COURSE, THE CAELIAN SMITH FOUNDATION PARTICIPATED, BUT IT WAS $450 MILLION PROJECT AND HAD ABOUT THREE OR FOUR MAJOR FUNDING SOURCES.

>> NICE. YOU MENTIONED IT A LITTLE BIT ALREADY ABOUT THE RELATIONSHIP BETWEEN CITY COUNCIL AND THE WHARVES BOARD AND I THINK YOU'RE RIGHT.

WE ARE THE LEADERS OF THE COMMUNITY AND IT NEEDS TO START WITH US.

BUT AS A TRUSTEE, WHAT WOULD YOU DO ON THAT SIDE TO HELP FACILITATE A BETTER RELATIONSHIP BETWEEN THE TWO ENTITIES?

>> WELL, I WOULD GO OUT OF MY WAY TO MAKE SURE THAT THE PROCEDURES THAT ARE BEING FOLLOWED ACCOMMODATE THE NEED TO INCLUDE DISCUSSION WITH THE CITY COUNCIL.

SOME OF THESE VERY LARGE COMMITTEES TAKE ON A LIFE OF THEIR OWN.

I THINK IT'S IMPORTANT THAT THEY RECOGNIZE THAT, EVEN THOUGH THEY HAVE BIG FINANCIAL OPERATIONS, THEY HAVE A CONSIDERABLE AMOUNT OF EMPLOYEES.

AT THE END OF THE DAY, THEY ARE PART OF THE CITY AND THE CITY NEEDS TO BE THOUGHT OF AS THE MOTHER OR THE FATHER AND THEY NEED TO WORK WITH THEM APPROPRIATELY.

WHENEVER THAT'S NOT BEING DONE, I THINK THE CITY NEEDS TO EXERT THEMSELVES INTO THE PROCESS BECAUSE THE CITIZENS, WE'RE TALKING ABOUT A BOARD POSITION NOW THAT'S NOT RESPONSIBLE TO THE VOTERS, BUT THE CITY COUNCIL MEMBERS ARE.

THAT'S REALLY THE ONLY ACCOUNTABILITY THERE AT THE COUNCIL MEMBER LEVEL THAT CITIZENS HAVE IN THAT.

>> GOOD ANSWER. THANK YOU FOR YOUR APPLICATION TOO.

>> THANK FOR YOUR SERVICE ON THE BOARD.

WHAT DO YOU THINK IS, GIVEN YOUR CHARACTERISTICS AND PAST EXPERIENCE WITH UTMB, WHAT'S THE GREATEST VALUE THAT YOU WOULD BRING TO THE WHARVES BOARD?

>> WELL, I THINK IT'S THE EXPERIENCE IN PUBLIC FINANCING, PUBLIC PROJECTS THAT I WOULD KNOW THE RIGHT QUESTIONS TO BE ASKING AND THAT'S JUST FROM THAT EXPERIENCE.

THAT 20-25 YEARS OF DOING THAT IS A LONG TIME AND I JUST THINK THAT I COULD ADD THAT EXPERIENCE AND INSPIRATION.

I DON'T THINK THE BOARD NEEDS A LOT OF INSPIRATION, I THINK THEY'VE DONE GOOD, I THINK THEIR STRATEGIC PLAN IS GOOD.

IT'S TIME NOW TO START ON THE EXECUTION PHASE ON THE WEST SIDE.

IT MAY MEAN THAT SOME OF THE TALKED ABOUT ACTIVITY NEEDS TO GO ON A BACK BURNER FOR A WHILE SO THAT THEY MAY NOT BE ABLE TO START ON A TERMINAL AT PURE 16 BEFORE THEY DO A LITTLE MORE WORK DOWN AT THE WEST END.

BECAUSE THERE'S NOT AN UNLIMITED FUNDS, THERE PROBABLY ARE APPROACHING PRETTY QUICKLY.

THEY'RE NOT THEIRS BECAUSE AGAIN THAT IT'S THE CITY'S MONEY, BUT ALL OF THE BOND THRESHOLDS IMPACT THE CITY'S THRESHOLDS.

THEIR FINANCES ARE INCORPORATED INTO THE CITY'S ANNUAL FINANCIAL REPORT.

[01:00:06]

AT SOME POINT, IF YOU LOOKED AT IT AS STRICTLY AS POSSIBLE, THEY COULD EASILY AFFECT THE BOARD CAPACITY OF THE CITY OVERALL.

THAT'S ANOTHER REASON THEY NEED TO BE COORDINATING WITH THE CITY.

THAT REALLY NEEDS TO BE WORKED ON TOGETHER.

>> APPRECIATE IT. THANK YOU.

>> GOOD QUESTIONS, I WANT TO THANK YOU.

>> THANK YOU VERY MUCH FOR YOUR APPLICATIONS, GOOD EXPERIENCE.

JUST ONE LAST QUESTION HERE.

HAVE YOU HAD A CHANCE TO LOOK AT THE PORTS MASTER PLAN AND IF YOU HAVE, WHAT'S YOUR COMMENTS ON THAT?

>> I HAVE AND I THINK IT'S WELL DONE, I THINK IT MAKES SENSE WITH THE EXCEPTION OF PELICAN ISLAND.

I WAS HOPING THAT THERE WOULD BE A LOT MORE FLESHED OUT FOR THE FUTURE OF PELICAN ISLAND.

JUST PERSONALLY, I THINK THAT SOMEWHAT AFFECTS THE ON AGAIN OFF AGAIN BRIDGE BECAUSE THERE REALLY HAS NOT BEEN IDENTIFIED A COMPELLING REASON TO HAVE A NEW BRIDGE.

IF THERE WAS SOMETHING BIG THAT HAD BEEN IDENTIFIED THAT WAS GOING TO HAPPEN OVER THERE, I THINK THAT IT WOULD HAVE BEEN REBUILT BY NOW.

THERE'S ANOTHER BIG DECISION I THINK HAS TO BE MADE IS WHETHER IT INCLUDES TRAIN TRACKS OR NOT, BUT ALL THAT I THINK IS THAT'S PART OF WHAT I'M CONCERNED ABOUT.

MY PET PEEVE I THINK ABOUT 20 YEARS IS THE FACT THAT NONE OF THE TAXING ENTITIES, AND I'LL PUT THIS IN YOUR DOMAIN, HAVE PRESSED THE HOUSTON WHARVES BOARD OR ACTUALLY IT'S HARRIS COUNTY NAVIGATION DISTRICT TO PAY TAXES ON THAT PROPERTY BECAUSE THEY ARE NOT PUTTING IT TO PUBLIC USE.

THE ONLY REASON THAT YOU GET EVEN Y'ALL GET A TAX EXEMPTION ON PROPERTY, IT'S NOT BECAUSE OF WHO YOU ARE, IT'S BECAUSE YOU HAVE PLEDGED TO PUT IT TO PUBLIC USE.

THAT LAND THAT THEY HAVE OVER THERE, WHEN MR. MITCHELL SOLD IT THAT THEY WERE PAYING ABOUT $200,000 A YEAR IN TAXES AND THEY NEED TO MOVE ON AND GET THAT RESOLVED, EITHER DO SOMETHING WITH IT AND WHAT'S THAT GOING TO BE AND LET'S WORK ON IT OR PAY TAXES ON IT.

>> THANK YOU VERY MUCH.

APPRECIATE YOUR TIME, THANKS FOR BEING HERE.

>> WE'RE GOING TO MOVE TO JEFF PATTERSON NOW IS OUR NEXT INTERVIEWEE.

MR. PATTERSON IS UP FOR IF COUNCIL CONSIDERS THAT, HE IS THE OTHER REAPPOINTMENT POTENTIAL AT WARS BOARD. MORNING, JEFF.

>> GOOD MORNING, GUYS.

>> GLAD TO HAVE YOU WITH US AND THANKS FOR YOUR RE-APPLICATION TO THE WARS BOARD.

JEFF WE'LL GIVE YOU A COUPLE OF MINUTES FOR INTRODUCTORY COMMENTS IF YOU'D LIKE, THEN WE'RE OPEN TO QUESTIONS. GO AHEAD.

>> I'LL BE BRIEF CRAIG, YOU KNOW ABOUT ME.

I'M ALWAYS VERY BRIEF.

[LAUGHTER]. FIRST OF ALL, JUST WANT TO THANK YOU FOR HAVING BEEN ALLOWED TO BE ON THE WARS BOARD SUPPORT FOR THE LAST THREE YEARS.

IT'S BEEN A REAL PLEASURE, I'VE REALLY ENJOYED IT.

I LOOK FORWARD TO HOPEFULLY ANOTHER THREE YEARS.

BUT MYSELF, I GRADUATED THE TEXAS A&M UNIVERSITY IN 1980, CIVIL ENGINEERING DEGREE, AND WENT TO WORK FOR DOW CHEMICAL, RUN OUT OF SCHOOL.

I STAYED THERE FOR 36 YEARS, I GUESS MY KIDS CALL ME A DINOSAUR.

WHO STAYS AT ONE JOB FOR 36 YEARS? THE PROBLEM IS NEVER REALLY GAVE ME A REASON TO LEAVE.

I STARTED OUT ACTUALLY DESIGNING THINGS, STRUCTURES, GOT INTO PROJECT ENGINEERING, LEADING PROJECT TEAMS. THEN THE LAST HALF OF MY CAREER WAS BASICALLY IN LEADERSHIP ROLES.

I LED SOME OF OUR SITE ENGINEERING GROUPS.

I LED THE GLOBAL CONSTRUCTION GROUP FOR THE SIX YEARS AND THEN FINISHED UP LEADING OUR SITE ENGINEERING GROUPS IN NORTHERN LATIN AMERICA.

WE'VE GOT A LOT OF OPPORTUNITY TO WORK GLOBALLY, WORLDWIDE, WORK WITH A LOT OF DIFFERENT PEOPLE.

LEARNED A LOT ABOUT LEADERSHIP, ABOUT MANAGING, ABOUT PEOPLE AND HOW TO WORK TEAMS, HOW TO SET GOALS, DO BUDGETS, ALL THE THINGS ASSOCIATED WITH PROJECTS.

[01:05:03]

I REALLY ENJOYED THAT.

BEING ON THE WARS BOARD HAS BEEN A GOOD, USAGE OR FOR ME HAS BEEN ABLE TO APPLY THOSE SKILLS AND MAKE THINGS BETTER.

THINK ABOUT WHAT IF I LOOK BACK AT MY THREE YEARS AND SAY, WHAT DID I ACCOMPLISH? WHAT DO I FEEL GOOD ABOUT WHAT I DID ON THE WARS BOARD? FIRST THING WAS THOSE DRIVE IN THE SAFETY CULTURE AT THE PORT.

I THINK FROM WHAT I, IN MY INDUSTRY EXPERIENCE, WE REALLY DIDN'T HAVE THIS AS GOOD A FOCUS AS WE SHOULD HAVE HAD ON SAFETY.

IN MY TIME THERE, WE'VE FORMED A SAFETY COMMITTEE.

WE'VE GOTTEN A LOT OF FOCUS ON OBSERVATION, INTERVENTION PROGRAMS, TRAINING FOR THE FOLKS.

WE'VE REALLY DONE A GOOD JOB OF BRINGING THAT CULTURE OF NOT ONLY PERSONAL SAFETY BUT PROCESS SAFETY TO THE PORT.

I REALLY FEEL GOOD ABOUT THE EFFORTS THAT WE'VE MADE THERE.

WE STILL GOT A LONG WAY TO GO.

ANY OF YOU ALL HAVE BEEN AROUND THAT SAFETY AREA.

IT'S A JOURNEY.

YOU'RE NEVER THERE, BUT I REALLY FEEL GOOD ABOUT HAVING DRIVEN THOSE EFFORTS.

THE SECOND THING I FEEL REALLY GOOD ABOUT IS THE STRATEGIC PLANNING EFFORTS.

WE'VE AGAIN, BASED ON WHAT I SAW AN INDUSTRY, WE HAVE THE MASTER PLAN, WHICH WAS A GREAT DOCUMENT TO LOOK AT WHERE WE WANT TO GO LONG TERM.

BUT THE THING TO ME, THE CONNECTION, YOU'VE GOT TO KEEP THAT LIVE AND YOU'VE ALSO GOT TO HAVE OKAY, WHAT'S YOUR YEARLY PROCESS FOR LOOKING AT WHAT DO YOU WANT TO DO, WHAT ARE THE PRIORITIES FOR THE NEXT YEAR? I DON'T THINK WE HAD A STRONG OF A PROCESS THERE AS WE COULD HAVE.

THE OTHER PART OF IT IS, THE OLD EXPRESSION ABOUT IF YOU'RE NOT MEASURING, YOU'RE JUST PRACTICING.

BRINGING IN SOME KPIS, KEY PERFORMANCE INDICATORS ABOUT WHAT'S OUR SCORECARD AND HOW DO WE LOOK AT THAT IN A QUICK WAY AND JUDGE OUR SUCCESS.

THAT FRANKLY IS A WAY THAT WE CAN BETTER.

WE'LL TALK ABOUT HOW DO WE BETTER WORK THE RELATIONSHIP BETWEEN CITY COUNCIL AND THE PORT.

HAVING SOME JOINT SESSIONS AROUND THAT MASTER PLAN AND THE YEARLY PLANNING ABOUT WHAT IS IT YOU GUYS WANT TO SEE US BE DOING GETS YOU MORE INVOLVED IN THAT PROCESS.

FRANKLY GETTING THE WARS BOARD MORE INVOLVED IN THAT PROCESS WITH THE STAFF.

THERE'S SOME REAL OPPORTUNITIES THERE TO DO THAT BETTER.

THEN THE THIRD THING I'VE BEEN TRYING TO DRIVE IS OUR CAPITAL PLANNING PROCESS.

AGAIN, THAT'S SOMETHING I HAD A LITTLE BIT OF EXPERIENCE WITH MY 36 YEARS THAT DOW AND WE ALL AGREE IN TERMINAL 25, WE GOT THINGS A LITTLE BIT AT A SEQUENCE AND THERE WAS REASONS WHY THAT HAPPENED.

WE HAD AN OPPORTUNITY TO GET A NEW LARGE SHIP COMING IN DECEMBER, WHICH IS NOT THAT FAR AWAY.

BUT IN SOME OF THAT WE GOT A LITTLE BIT OUT OF THE SEQUENCING OF HOW WE GET THE FINANCING DONE AND THE SPENDING AND STUFF.

SO WHAT YOU'LL SEE FOR TERMINAL 16, THAT PROPOSED EFFORTS, YOU'LL SEE, WE'LL BASICALLY HAVE THE FRONT-END PACKAGE, WILL HAVE A GOOD COST ESTIMATE, WILL HAVE THE FINANCING OPTIONS AND THE COMMERCIAL AGREEMENTS THAT WILL ALL BE IN PLACE BEFORE THE BOARD MAKES A FINAL GO, NO-GO DECISION.

AGAIN IN TERMINAL 25, WE GOT A LITTLE BIT OUT OF SEQUENCE THERE.

IT WAS A GOOD EFFORT, AND THEY WILL BE READY IN DECEMBER FOR THE SHIP.

BUT WE CAN DO BETTER AS FAR AS HOW WE DO THE BUDGETING AND PLANNING ON THAT.

THAT'S SOMETHING WE'VE MADE SOME PROGRESS ON.

LIKE I SAID, FOR TERMINAL 16, WE WILL DO THAT IN A MORE STRUCTURED FASHION.

BUT THE THING I WOULD SAY THERE THE PORT HAS REALLY GOOD PROCESS FOR APPROVING AN INDIVIDUAL CONTRACT.

BUT WHEN YOU'RE TALKING ABOUT TERMINALS 25 OR TERMINAL 16, WHICH IS A COLLECTION, THERE'S MULTIPLE CONTRACTS THERE, YOU REALLY NEED TO HAVE MORE OF A PROJECT, GO, NO-GO.

YOU JUST DON'T WANT TO START A PROVING CONTRACT BY CONTRACT, YOU REALLY NEED TO LOOK AT THAT MORE AS A PROJECT.

I THINK WE WILL DO THAT.

THAT WILL BE MORE OF OUR OPERATING PROCEDURE IN THE FUTURE.

ABOUT WHAT DID THE PORT ACCOMPLISH IN THOSE THREE YEARS, WE SURVIVED THE PANDEMIC.

YOU LOSE YOUR BIGGEST LINE OF BUSINESS FOR 18 MONTHS IS LIKE OKAY, WHERE'S THE MONEY COMING FROM? BUT WE PROVED THAT WE CAN KEEP THE DOORS OPEN AND WE DIDN'T HAVE TO MAKE MASSIVE REDUCTIONS OF OUR PERSONNEL WITH CARGO.

WE ALSO DISCOVERED THAT LAY BUSINESS IS A PRETTY GOOD THING, BRING YOUR SHIP TIED UP AT THE DOCK, WE'LL CHARGE YOU A LITTLE MONEY.

WE MADE A LOT. WE FOUND A GOOD LINE OF BUSINESS IN THERE.

THAT GETTING THE ROYAL CARIBBEAN TERMINAL OPENED ON TIME, THE BEAUTIFUL, BEEN INSIDE OF IT OR YOU WATCH IT.

IT'S IT REALLY PUTS GALVESTON ON THE MAP AS FAR AS PREMIER CRUISE DESTINATION.

THAT WAS A REALLY GOOD THING.

GETTING THE TERMINAL RENOVATIONS FOR 25 IN THE NEW EXCEL SHIP COMING IN DECEMBER.

THAT WAS A REALLY GOOD THING.

WE'RE GOING THROUGH THE OPPORTUNITY ON TERMINAL 16 WITH DOUMANI LEAVING.

WE'VE GOT THAT OPPORTUNITY NOW TOO.

WHAT DO WE DO WITH THAT? WE CAN USE IT FOR LIGHT DOCKAGE,

[01:10:03]

WE COULD DO OTHER THINGS.

WE NEED TO FULLY FLESH OUT THIS OPPORTUNITY WITH A CRUISE TERMINAL WITH MSC, WITH NORWEGIAN.

LET'S SEE IF THAT MAKES FINANCIAL SENSE.

IF THAT'S THE DIRECTION WE WANT TO GO AND THEN WE CAN MAKE A DECISION TO GO FORWARD OR NOT ON THAT DEPENDING ON THE NUMBERS.

WE'VE GOT A GOOD PLAN NOW TO FLESH OUT THE WEST END.

WE'VE GOT THE ENGINEERING GOING ON TO BUILD A 500 FOOT-LONG T-HEAD BULK AT ACROSS THE TOP OF IT, WHICH IS LONG NEEDED.

WE'VE GOT SOME STATE MONEY HOPEFULLY IN SEPTEMBER THAT WILL BE ABLE TO MATCH A PORTION OF THAT AND BE ABLE TO GET THAT T-HEAD BUILT.

THEN WE'RE DOING THE PLANS ON HOW DO WE GET TO FAIL.

IF YOU'VE SEEN THE THING WITH THE AUTHOR ADM LEAVING NOW, IF YOU LOOK AT THOSE TERMINALS, WE SUDDENLY HAVE MAYBE A REALLY GOOD SOURCE FOR PHIL FOR THOSE SLIPS.

THAT PLAN IS COMING TOGETHER.

THEN YOU LOOK AT THE RECORD REVENUES AND THE CASH FLOW THAT THE PORT IS GENERATING, THOSE WERE ALL VERY POSITIVE THINGS.

AGAIN, LIKE I MENTIONED, WE'VE NOW GOT A SITUATION WHERE WE CAN MAKE A DECISION ON TERMINAL 16, KNOWING THAT WE'VE GOT AN OPTION, KNOWING ALSO THAT WE'VE GOT THE WAY TO BE ABLE TO DO THE WEST END AND GET THAT WORK DONE.

THE BOARD REALLY WANTED TO SEE ALL THAT IN TOTAL.

WE JUST DIDN'T WANT TO MAKE AN INDIVIDUAL DECISION ON TERMINAL 16, NOT KNOWING HOW WE WOULD DO THE WEST END.

WE'VE GOT A GOOD PLAN THERE.

ABOUT FOR THE FUTURE, IT'S COMPLETING THOSE EFFORTS.

GETTING THE WEST END, THE WORKS THERE FOR THE WEST END, FINALIZING THE DECISION ON TERMINAL 16.

THAT'S GOING TO BE A BIG DECISION FOR US, BUT WE SPENT SOME MONEY EARLY UPFRONT TO FLUSH OUT THAT CONCEPT.

WHAT CAN WE AFFORD TO SPEND ON THAT TERMINAL? BECAUSE THE CRUISE TERMINAL HERE, WE GET PAID BACK MOST OF THAT MONEY THROUGH THE CRUISE COMPANY, BUT THEY CAN ONLY AFFORD TO CHARGE SO MUCH PER TICKET TO BE ABLE TO RECOUP THAT.

WE'RE GETTING CLOSE TO HAVING A PACKAGE THAT WE CAN LOOK AT THERE.

THE WEST END IS EXCITED.

WE'VE TALKED ABOUT FOR YEARS HOW WE GET THE WEST END.

DON, WE'VE GOT A GOOD PATH FORWARD THERE.

THE OTHER THING IS WE'VE GOT OPPORTUNITIES.

OBVIOUSLY WE'VE GOT TO FIND WAYS TO WORK BETTER WITH THE CITY, WITH THE PARK'S BOARD.

THERE'S OPPORTUNITIES THERE ABOUT HOW DO WE DO THAT.

BUT WE'VE TALKED ABOUT HAVING SOME ADDITIONAL MEETINGS, BUT WE REALLY NEED TO HAVE A BETTER WAY OF BREAKING DOWN.

THERE ARE CULTURAL BARRIERS, THE PORT AND THE CITY HAS GROWN UP IN THEIR SILOS, BUT WE'VE GOT TO CONTINUE TO WORK TO BREAK THOSE BARRIERS DOWN.

IT'S REALLY GETTING PEOPLE TALKING.

WE'RE ALL USED TO TELL PEOPLE THAT THE DOW, THEY'D SAY, WELL THEY WANT TO DO THIS OR THEY OR WHATEVER.

WELL, THEY AS A HUMAN BEING AT A PERSON.

DID YOU DID YOU ACTUALLY WALK INTO THAT OFFICE? DID YOU SIT DOWN? DID YOU MEET THAT 'THEY' AND HAD THAT CONVERSATION? THERE'S A LOT OF OPPORTUNITIES THERE.

WE GOT TO GET OURSELVES TALKING TO EACH OTHER.

THERE'S ALL GOOD IDEAS, WE GOT TO GET THE PEOPLE TALKING TOGETHER AND WORK THOSE OUT.

WITH THAT, I FEEL REALLY GOOD ABOUT WHAT I'VE BEEN ABLE TO CONTRIBUTE AND ACCOMPLISH ON THE WARS BOARD.

I WILL HOPEFULLY LOOK FORWARD TO BEING ABLE TO DO THAT FOR THE NEXT THREE YEARS.

BUT AGAIN, THANK YOU FOR THE OPPORTUNITY AND I'M HAPPY TO ANSWER OR TRY TO ADDRESS ANY QUESTIONS YOU GUYS MIGHT HAVE.

>> ONE GOOD THING ABOUT JEFF, YOU ANSWERED ALL MY QUESTIONS. [LAUGHTER].

>> I DON'T KNOW WHAT DO YOU MEAN BY BRIEF EXACTLY.

>> [LAUGHTER] NO.

>> I TOOK THE JIMMY YARBOROUGH APPROACH.

I'LL JUST TRY TO ANSWER ALL YOUR QUESTIONS [OVERLAPPING]

>> JEFF JUST GAVE US STATE OF THE PORT PRESENTATION IN A WEEK.

THANK YOU JEFF FOR THAT.

I WANT TO SAY I SERVE WITH JEFF.

HE'S BEEN A GREAT BOARD MEMBER AND HE'S CHAIRMAN OF THE FINANCE COMMITTEE THERE AT THE PORT, AND THAT'S A BIG COMMITTEE.

THAT COMMITTEE REALLY DOES A LOT OF HEAVY LIFTING OF THE ACTIVITIES OVER THERE AND JEFF HAS DONE AN EXCEPTIONAL JOB THROUGH THAT, SO THANK YOU, JEFF.

>> THANK YOU. I REALLY APPRECIATE [OVERLAPPING]

>> APPRECIATE THAT. LET'S OPEN IT FOR QUESTIONS.

MAUREEN AND MIKE AND THEN DAVID FRANKLY.

>> I JUST WANT TO SAY I'VE WATCHED BOTH THE FINANCE AND THE WHARVES BOARD MEETING ONLINE, ACTUALLY ON TV BECAUSE YOU CAN PROJECT THEM ON YOUR TV, AND I HAVE TO SAY I THINK YOU DO AN EXCELLENT JOB AS CHAIR OF FINANCE AND AS A BOARD MEMBER.

WHAT WOULD YOU SAY IS THE BIGGEST CHALLENGE THAT THE PORT FACES RIGHT NOW?

>> I THINK IT'S PROBABLY PRIORITIZING THE OPPORTUNITIES.

I THINK WE ONLY HAVE SO MANY RESOURCES AND THEN TALK ABOUT HOW MUCH WE CAN BORROW,

[01:15:06]

SO I THINK IT'S REALLY TRYING TO FIGURE OUT THE OPPORTUNITIES THERE AND NOT GET AHEAD OF OURSELVES.

WE HADN'T MENTIONED, BUT PELICAN ISLAND THERE'S ANOTHER OPPORTUNITY THAT HAS A LOT OF POTENTIAL THERE.

BUT I THINK WE'VE GOT TO KEEP OUR EYE ON THE BALL AND I THINK AS WE'VE TALKED ABOUT, WE DON'T WANT TO MAKE A DECISION ON TERMINAL 16 BUT THEN IF WE DON'T HAVE ANY MONEY LEFT OVER TO DO THE WEST END, NOW WE'VE BOXED OURSELVES.

SO I THINK WE'VE GOT TO STEP BACK AND LOOK AT THAT OVERALL PICTURE AND THEN PRIORITIZE THOSE OPPORTUNITIES AND STAY FOCUSED ON YOUR GETTING THOSE EXECUTED AND IMPLEMENTED AND THEN MOVE ON TO THE NEXT THING.

>> SO DO WE EXPAND ON THAT BECAUSE I DON'T THINK A LOT OF OUR CITIZENS UNDERSTAND IT.

LET'S SAY YOU GET A GRANT TO DO THE WEST END OF THE PORT, AND I HAPPEN TO SIT ON THE TBC SO I WILL BE VOTING YES OR NOT.

THE MATCH COMES FROM THE REVENUES THAT ARE GENERATED FROM THE OTHER CRUISE TERMINALS AND SO FORTH.

CAN YOU EXPAND ON THAT? I FULLY UNDERSTAND THAT I'VE BEEN THAT THIS WAS SUCH AN IMPORTANT MEETING.

I WENT BACK AND READ ALL YOUR AUDIT AGREEMENT LETTERS, READ ALL YOUR AUDITS AS WELL AS READ OUR AUDITS FOR THIS MEETING, OF WHICH I HAVE TO SAY THE PORT SHINES.

BUT CAN YOU EXPAND ON THAT, HOW YOU MATCH IT, SINCE YOU DON'T HAVE A TAXING ABILITY?

>> YEAH. IN SOME OF THAT 15 MILLION MATCH, I THINK THAT'S BEEN THE NICE PART ABOUT THE CRUISE BUSINESS AND FRANKLY PARKING.

WHO KNEW THERE WAS SO MUCH MONEY IN PARKING.

THAT CASH FLOW THAT ENABLES US NOW TO USE THOSE REVENUES TO BE ABLE TO SAY GENERATE THAT $15 MILLION TO MATCH THE MONIES FOR THE WEST END, AND IN ANY COURSE THAT'S ONLY GOING TO BE A PORTION OF WHAT WE NEED TO DO.

THE BULKHEAD IS PART OF IT BUT THEN WE'VE GOT THE SLIP BILLS THAT WE NEED TO DO WHICH ARE GOING TO BE ADDITIONAL MONEY.

IF WE'RE GOING TO TEAR THE SILOS DOWN, GRIND UP MATERIAL, THOSE ARE COSTS THERE.

SOME OF THAT WE CAN DO THROUGH OUR OWN INTERNAL FUNDING AND SOME OF THAT WE'RE GOING TO HAVE TO LOOK AT BORROWING SOME MONEY, OR I THINK THE OTHER PART WE'VE LOOKED AT FOR THE WEST END IS A PUBLIC PRIVATE PARTNERSHIP.

IN FACT, AT SOME POINT WE'LL GO OUT WITH A PROPOSAL TO THE STEVE ADORNING COMPANIES AND OTHERS TO SEE WHAT WE WANT TO DO THERE.

BUT AGAIN, THERE'S NOT A FAIR AMOUNT.

I GET $8 MILLION OF REVENUE GENERATED FROM THE CARGO, WHICH IS NOT TRIVIAL AND OBVIOUSLY DURING THE PANDEMIC THAT WAS VERY VALUABLE MONEY BUT $8 MILLION DOESN'T GIVE YOU A WHOLE LOT OF ROOM FOR SOMEBODY TO COME AND INVEST HUNDREDS AND HUNDREDS OF MILLIONS OF DOLLARS.

SO WE'RE GOING TO HAVE TO CONTINUE TO WORK THAT.

AGAIN IT'S A SEQUENCING ISSUE WHERE I GET THE BULKHEAD BUILT FIRST WHICH GIVES US ADDITIONAL DOCKET SPACE, PLACES WE CAN ANCHOR SHIPS.

THEN LOOKING AT HOW DO WE GET THE SLIPS FIELDS, ARE THERE GRANT MONIES, IS THAT THROUGH OPERATIONS OR THROUGH BONDS AND OTHER FUNDING? WE'LL HAVE TO LOOK AT THAT MIX AND WORK, BUT AGAIN, THAT'S WHY THAT PRIORITIZATION AND PLANNING IS SO IMPORTANT.

>> THANKS FOR REAPPLYING AND THANKS FOR DOING THIS AS A VOLUNTEER.

LIKE WE ALL KNOW NOBODY GETS PAID FOR THESE THINGS BUT WE SPEND MANY HOURS DOING IT.

IN YOUR PLANS THAT I'VE HEARD OF THE THINGS THAT YOU WERE TALKING ABOUT, I DIDN'T HEAR ANYTHING ABOUT PIER 19.

WHAT DO YOU THINK WOULD BE THE PLAN FOR PIER 19 IN THE NEXT THREE YEARS?

>> AS FAR AS PREPARING DOCKS OR?

>> PREPARING DOCKS, MORE PARKING.

>> WE'RE IN THE PROCESS NOW OF REPLACING ABOUT 60 OR 70 PIERS, WHICH IS FOUR OR $500,000 INVESTMENT TO DO THOSE REPAIRS.

THAT'S UNDERWAY. AND WE'LL FINISH THAT.

THEN THE OTHER THING WE'RE LOOKING AT THERE TOO IS, AND WE'VE TALKED ABOUT, CAN WE AT SOME POINT GO BACK WITH CONCRETE PILINGS INSTEAD OF WOOD BECAUSE OBVIOUSLY THE CONCRETE IS GOING TO LAST LONGER BUT THEY'RE MORE EXPENSIVE SO THERE'S A TRADE-OFF THERE.

PART OF THAT IS LOOKING AT THAT WHOLE PLAN OF HOW WE KEEP THAT DOCK IN SERVICE AND KEEP THAT DOCK WELL.

THE OTHER PART IS ALL ABOUT THE PARKING.

THAT'S ANOTHER PART OF THAT PRIORITIZATION AND PLANNING.

DO WE BUILD? DR. BRIAN KNOWS VERY WELL.

WE'VE HAD A LOT OF TALK ABOUT THAT.

DO WE BUILD SOMETHING JUST FOR TERMINAL 16 OR DO WE SAY, LET'S GET CLEVER,

[01:20:05]

LET'S GO DOWN A LITTLE BIT FURTHER WEST AND BUILD A PARKING GARAGE THAT COULD SERVE AS ALL OF THE TERMINALS AND WE CAN TAKE SOME OF THAT SURFACE PLOTS THAT WE HAVE NOW AND USE THOSE FOR OTHER PURPOSES? THOSE ARE STILL TO BE DETERMINED.

I THINK WE'VE GOT TO WORK THROUGH THOSE OPTIONS BUT AGAIN I THINK THAT'S ALL PART OF THAT HOW DO WE PRIORITIZE THOSE OPPORTUNITIES BETWEEN WHAT DO WE DO AT TERMINAL 16, WHAT DO WE DO WITH THE WEST END, AND WHAT DO WE DO WITH THE PARKING? I THINK THOSE ARE THE THREE BIG THINGS WE'VE GOT THE PUZZLES WE'RE TRYING TO FIT TOGETHER AND SEE THE BEST OPTIONS THERE.

>> SO DO YOU THINK THE WHARVES WOULD EVER TAKE UP PORTION OR A PERCENTAGE OF THE REVENUES THAT THEY MAKE FROM PARKING IN THE TERMINALS AND MAYBE SILO IT FOR PIER 19?

>> WELL, THE MONEYS THAT WE'RE SPENDING RIGHT NOW ON ALL THOSE 400, $500,000 ON PILING THOSE COME FROM THE REVENUES FROM THE PORT.

THAT'S THE ONLY SOURCE WE HAVE TO DO THOSE REPAIRS, SO I GUESS THE ANSWER IS YES.

WE USE THOSE FOR THE ONGOING THINGS AND I THINK AGAIN, WE'VE GOT TO LOOK IF THERE'S SOMETHING LONGER-TERM OR BIGGER THAT WE DO THERE.

THEN AGAIN, WE'VE GOT TO FIGURE OUT WHERE THAT FUNDING SOURCE COMES FROM.

>> JOHN, DID YOU WANT TO GO [OVERLAPPING]

>> YES. I WILL GO.

JEFF, THANKS FOR SERVING ON THE BOARD.

YOU'VE DONE A GOOD JOB.

MY QUESTION, AND YOU BROUGHT IT UP A COUPLE OF TIMES, REGARDS PIER 16 AND THE PLANS FOR THAT AREA.

I GUESS MY QUESTION WOULD BE, WHAT INPUT DO YOU SEE COUNCIL GIVING THE PORT IN REGARDS TO FUTURE DEVELOPMENT OF THAT AREA?

>> YEAH. I THINK THOSE ARE THOSE OPPORTUNITIES FOR WHAT'S THE FORUM FOR DOING THAT? WHAT'S THE RIGHT WAY TO BE ABLE TO DO THAT? BUT I THINK CERTAINLY THAT IS SOMETHING COUNCIL SHOULD HAVE A SAY IN OR SHOULD HAVE AN INPUT.

YOU GUYS HAVE A VISION AS WELL AS WHAT THAT SHOULD LOOK LIKE.

WE'RE TASKED WITH FIGURING OUT HOW DO WE KEEP THE PORT VIABLE? HOW DO WE GENERATE REVENUES? HOW DO WE KEEP IT GOING? BUT THAT IS A LARGE DECISION THAT IMPACTS THE COMMUNITY, IMPACTS THE CITY, IMPACTS SUPPORT, SO I THINK, JOHN, I WOULD LOOK TO YOU GUYS TOO, AND FOR DR. BRIAN, WHAT IS THAT RIGHT MECHANISM DO YOU HAVE? TO ME, WHEN WE GET CLOSE TO THAT POINT OF BEING ABLE TO MAKE A FINAL DECISION, I THINK WE NEED TO HAVE SOME DISCUSSION BETWEEN THE PORT AND COUNCIL ABOUT YOUR QUESTIONS, YOUR CONCERNS, BECAUSE YOU GUYS REPRESENT THE CITY OF THE PEOPLE OF GALVESTON.

THEY OBVIOUSLY HAVE A SAY OR A VOICE IN THAT TOO, SO HOW DO WE GET THAT FORUM WHERE WE CAN HAVE A GOOD EXCHANGE OF IDEAS BECAUSE I'M NOT GOING TO SIT HERE AND SAY I HAVE ALL THE ANSWERS.

I DON'T THINK THE WHARVES BOARD'S GOING TO SAY THAT WE HAVE ALL THE ANSWERS.

I THINK COLLECTIVELY WE'RE BETTER IF WE PUT ALL THE HEADS TOGETHER AND ALL THE INPUTS TOGETHER AS FAR AS WHAT IS THAT RIGHT DECISION.

I THINK WHAT WE'VE GOT TO DO, WE'VE GOT TO BRING THE NUMBERS FORWARD.

IT'S AN OPPORTUNITY. PIER 16 IS GOING TO BECOME VACANT HERE NEXT YEAR, SO WHAT DO WE DO WITH THAT? WE COULD USE IT FOR LATE DOCKAGE.

WE COULD PROBABLY MAKE ALMOST AS MUCH MONEY AS WE'RE MAKING ON THE CURRENT CONTRACT, THE LIGHT DOCKING, SO THAT'S AN OPTION.

THE OTHER OPTION IS WE'VE GOT TWO OF THE LARGEST CRUISE COMPANIES IN THE WORLD THAT ARE VERY INTERESTED IN COMING TO GALVESTON WHICH I THINK IS TO ME IS A GREAT OPPORTUNITY.

I THINK OUR ROLE AS WHARVES BOARD IS TO FULLY FLESH OUT THAT OPPORTUNITY AND THEN WE'VE GOT TO PUT THE NUMBERS ON THE TABLE AND THEN COLLECTIVELY WE'VE GOT TO DECIDE WHAT'S THE BEST DECISION THERE FOR THE CITY OF GALVESTON, THE PORT, COMMUNITY.

>> I GUESS FOLLOW-UP TO THAT IS WHEN DO YOU WHEN DO YOU SEE THAT COMING TO US? BECAUSE REALLY WE HAVE NO AUTHORITY TO DICTATE DEFINITELY WHAT THE PORT DOES DOWN THERE.

WE'VE SEEN THIS DIRECTION GOING TOWARDS CRUISE TERMINAL ON 16.

I DON'T HAVE ANY PROBLEM WITH THAT, TO BE HONEST WITH YOU.

BUT I THINK THERE IS SO MUCH MORE THAT INCLUDE A TERMINAL THERE THAT COULD HAPPEN WITH THAT THAT AREA.

BUT WE CAN'T REALLY INITIATE THOSE CONVERSATIONS BECAUSE, WE COULD, BUT WE DON'T WE DON'T REALLY HAVE ANY AUTHORITY TO DO THAT.

WE CAN TELL YOU WHAT WE'D LIKE TO SEE BUT THEN IT'S REALLY IN YOU-ALL'S COURT TO DO WHAT YOU WANT WITH THAT PROPERTY.

I GUESS WE HAVE SEEN A PATH THAT DOESN'T INCLUDE US IN THESE DECISIONS IN THE PAST.

I'M JUST LOOKING FOR SOME INSIGHT FROM BOARD MEMBERS ON HOW WE

[01:25:10]

RELAY OUR THOUGHTS TO THE PORT AND OUR CONSTITUENTS THOUGHTS TO THE PORT TO MAKE THIS SOMETHING THAT THE COMMUNITY AS A WHOLE HAS OPPORTUNITY TO INFLUENCE DECISIONS DOWN THERE.

>> YEAH. AGAIN, I THINK IT'S A MATTER OF HOW DO WE GET THE DIALOGUE GOING? I THINK IT'S AGAIN, WE'RE ALL A BUNCH OF HUMAN BEINGS HERE.

I THINK IT'S INCUMBENT ON US, I THINK AS A PORT TO REACH OUT.

I THINK WE'VE GOT TO CREATE A FORUM, BUT YOU ARE ABLE TO HAVE THAT DIALOGUE.

BECAUSE I THINK IT WOULD BE TO ME, IT'S MUCH BETTER TO HAVE THE CONVERSATIONS UPFRONT AND GET THE INPUT THAN IT IS TO DO IT AFTER THE FACT AND SAY, WAIT A MINUTE, HOW COME YOU DIDN'T THINK ABOUT THIS OR THAT, ON TERMINAL 16 WHEN THERE'S PRETTY SEVERE BUT THERE'S FINANCIAL CONSTRAINTS.

WE CAN ONLY AFFORD SO MUCH MONEY TO BE ABLE TO BORROW OR DO SO MUCH MONEY THAT COMPANIES CAN ONLY AFFORD A CHARGE SO MUCH FOR THEIR PAST.

THERE'S NOTHING WHAT WE'RE LOOKING AT, WHAT IS COME TO US, WE'RE GOING TO DO IT.

IT'LL BE A FAIRLY BARE BONES, BUT IT'LL BE A FUNCTION, AS WE SAY IN ENGINEERING, A FUNCTIONAL ENGINEERED VERSUS ARCHITECT, BUT IT'S FUNCTIONAL.

PETROCHEMICAL PLANTS ARE FUNCTIONAL OR NOT PRETTY. DAVID, UNDERSTAND.

IT'LL BE SOMETHING THAT FIT FOR PURPOSE.

IT'S NOT GOING TO BE A ROYAL CARIBBEAN SETUP TO START WITH, BUT I THINK THERE'S FUTURE OPPORTUNITIES THERE ONCE IT GETS ESTABLISHED.

>> THAT'S MY POINT. I'M GLAD YOU BROUGHT THAT UP.

WE HAVE THESE TERMINALS TODAY THAT ARE ONE USE FACILITIES AND THEY OPERATE THREE, POSSIBLY FOUR DAYS A WEEK.

THEY SIT THERE AND DO NOTHING A LOT OF THE TIME.

OUR CITIZENS DON'T REALLY GET ANY USE OUT OF THAT TERMINAL.

THAT'S FINE. THERE'S OTHER INCENTIVES THAT WE GET, PARKING REVENUE AND STUFF LIKE THAT THAT WE BRING TO THE TABLE.

BUT WHAT I SEE WITH 16, ESPECIALLY SINCE THE PORT IS IN SUCH A FINANCIAL POSITION ON LIMITED AMOUNT OF MONEY THAT THEY CAN BORROW IS AN OPPORTUNITY ON 16 TO REALLY BRING IN SOME ADDITIONAL PARTNERS AND REALLY DEVELOP THAT SITE INTO SOMETHING THAT IS USED EVERY DAY AND SOMETHING THAT COULD BE A HOTEL ON TOP THE TERMINAL, RESTAURANTS RETAIL, AND OPERATE IN A MUCH BROADER SCOPE THAN WHAT A SINGLE USE TERMINAL OPERATES TODAY.

WE HAVE THAT OPPORTUNITY, I THINK WITH 16.

I HAD TO GO DOWN THIS ROAD AND GET TO A POINT WHERE YOU'LL COME BACK TO COUNCIL, AND THAT IS WHAT WE HAVE.

THAT'S OUR ONLY OPTION.

WE'VE GONE SO FAR IN THAT DIRECTION THAT THERE'S NO OTHER OPTION BUT TO JUST LINEAR AND OTHER $7,500 MILLION TO BUILD A ONE USE FACILITY THERE.

I HOPE THAT WE CAN START THAT DIALOGUE SOONER THAN LATER AND GET INPUT, YOU PROVIDE INPUT ON THAT.

>> NO, I THINK I THINK IT'S VALUABLE.

IT'S VERY IMPORTANT TO HAVE THAT DIALOGUE.

WE NEED TO TALK ABOUT HOW WE STRUCTURE THAT.

BUT I THINK IT'S IMPORTANT TO GET THE INPUT UPFRONT VERSUS AFTER THE FACT FOR SURE AND WHAT'S POSSIBLE AND WHAT'S NOT.

I THINK PART OF THIS MAY BE THERE MAY BE A PHASE OPPORTUNITY HERE AS FAR AS WHAT WE DO.

BUT I THINK AGAIN, HAVING THAT LONG TERM LOOK IS VERY IMPORTANT.

>> WE HAVE DAVID FRANKLIN AND THEN RAY.

PRETTY MUCH ALL MY QUESTIONS HAVE BEEN ANSWERED.

BUT, YOU SPEAK MY LANGUAGE AS A CIVIL ENGINEER AND THE PLANNING THAT YOU HAVE BEEN ABLE TO ENCOURAGE OVER AT THE WARS BOARD IS DULY NOTED AND WELL-RECEIVED AND NOT GREATLY APPRECIATE THAT.

IT'S VERY CLEAR THAT TERMINAL 16 WAS ACCELERATED OUT OF THE MASTER PLAN PROBABLY DUE TO A COMBINATION OF BOTH MARKET FORCES, BUT ALSO DUE TO THE EXPERTISE OF LEADERSHIP THAT WE HAVE THERE ON ROGE RACE.

THAT'S WHAT HE KNOWS. HE KNOWS CRUISE TERMINALS.

HAVING SAID THAT, THE WALLS BOARD MANAGES THE MOST VALUABLE LAND THAT THE CITY OWNS, DOLLAR PER SQUARE FOOT, IT DOESN'T GET MORE EXPENSIVE THAN WHAT YOU ALL OWN.

IT REALLY BEHOOVES YOU TO LOOK AT THAT AND THEN CONSIDER THE IDEA OF WHAT JOHN PAUL SAID.

THE DEVELOPMENT COMMUNITY, NOT JUST HERE LOCALLY BUT NATIONALLY, IS KNOCKING ON YOUR DOOR AND HAS BEEN.

I'VE SEEN THE PROPOSALS THAT HAVE BEEN THROWN ON ROGERS DESKS.

I THINK THAT YOU HAVE A GREAT OPPORTUNITY TO COLLABORATE BOTH WITH THE DEVELOPMENT COMMUNITY AND ALSO WITH COUNCIL TO DEVELOP A PROJECT SOLUTIONS THAT ARE THE HIGHEST AND BEST USE ON THAT PROPERTY AND TO

[01:30:02]

COUNCIL MEMBER LIST ASCII IS A COMMENT THAT AREA BETWEEN TERMINAL 14 AND TERMINAL 19, OR PURE 19 IS SOME OF THE MOST RIPE AREA FOR DEVELOPMENT, PARTICULARLY FOR WHAT HE'S REFERRING TO IN MIXED USE.

THANK YOU AGAIN FOR YOUR SERVICE.

I HAD QUESTIONS. THEY ALL GOT ANSWERED, SO THANK YOU.

>> I WAS GOING TO MAKE A COMMENT OR ASK A QUESTION AND FEAR THE PERSON WHO CAN ANSWER PROBABLY WOULD BE BETTER ANSWERED BY ROGER.

BUT WHEN YOU LOOK AT DEVELOPING ON THE BOARDS PROPERTY, IT'S NOT THAT IT'S JUST THE DWARFS BOARD OR THE MANAGEMENT AT THE PORT.

IT ALSO GETS LOOKED AT BY THE COAST GUARD.

IT ALSO GETS LOOKED AT BY HOMELAND SECURITY AND ALSO,

>> OR ENGINEERS.

>> RIGHT. HAVING GROWN UP ON THE EAST COAST, I'M USED TO SEEING BLENDS AND PORTS THAT ARE BOTH ACTIVE PORTS AND COMMERCIAL.

BUT DOESN'T THAT IN ITSELF PRESENT SOME LIMITATIONS ON WHAT CAN BE DEVELOPED BECAUSE YOU HAVE TO GO LOOK AT ALL THOSE MEASURES.

>> THERE ARE CERTAINLY WILL BE CONSTRAINTS AND RULES AND REGULATIONS THAT WE HAVE TO FOLLOW.

BUT I THINK TO JOHN'S POINT AND DAVID'S, I THINK PART OF IT, IT'S JUST BRAINSTORMING WHAT'S POSSIBLE.

LET'S THROW IDEAS OUT THERE.

SOME OF THEM MAY NOT BE PRACTICAL OR POSSIBLE, WHATEVER.

BUT IF YOU DON'T GET THEM OUT THERE AND TALK ABOUT THEM, THEN YOU CAN RUN THEM DOWN AND START SAYING, WHICH OF THESE HAVE SOME POSSIBILITY? BUT I DO THINK THAT IS AN OPPORTUNITY FOR US, DR. BROWN TO DO THAT.

HOW CAN WE HAVE THAT? I THINK I WOULD DO IT IN CONTEXT MAYBE OF THE MASTER PLAN AND THAT UPGRADE AND MAYBE THERE'S AN OPPORTUNITY BETWEEN COUNCIL IN THE WAR SPORT.

LET'S JUST HAVE THAT OPEN BRAINSTORMING SESSION ABOUT WHAT'S POSSIBLE.

>> THAT WAS ANNOUNCED COUPLE OF MEETINGS AGO HERE AT COUNCIL THAT'S COMING UP.

WE'RE GOING TO HAVE A SPECIAL MEETING WITH THE BOARD TO DO THAT. THAT'S SOMETHING [OVERLAPPING].

>> I THINK THAT'S THE TIME YOU HAD TO BRING WILD CRAZY.

BUT WHATEVER, IF YOU DON'T BRING THOSE IDEAS UP AND THEN THEY COULD, THEN YOU'VE GOT TO BALANCE THEM AGAINST THE NASTY REALITY OF WHAT'S LEGALLY POSSIBLE, WHAT'S REGULATED, WHAT CAN BE AFFORDED.

BUT I THINK IF YOU DON'T EXPLORE THOSE AND YOU DON'T EVER KNOW.

>> THANK YOU VERY MUCH FOR YOUR SERVICE AND YOU'RE DOING AN INCREDIBLE JOB.

>> TO JOHN AND DAVID'S POINT IN EMORY'S TOO, I AGREE.

THIS IS A TIME WE DON'T HAVE AN AUTHORITY TO TELL THE WARS BOARD WHAT THEY HAVE TO DO OVER THERE.

BUT I THINK THE WARS BOARD IS VERY OPEN, AS JEFF HAS MENTIONED, TO TAKE INPUT FROM THE CITY AND CONSIDER THAT IN THEIR DELIBERATIONS.

WE'LL SET THAT UP. THAT'S SOMETHING THAT IS PLANNED AND WILL BE COMING UP SHORTLY.

>> WE APPRECIATE ALL THOSE IDEAS.

I GUESS ONE COMMENT I DIDN'T MAKE THEM.

WE'VE TALKED ABOUT THE AUDIT.

YOU GUYS ARE GOING TO TALK ABOUT IT, BUT I THINK TO ME I WELCOME THAT EXTERNAL REVIEW, WELCOMING, WE CAN ALWAYS GET BETTER.

IT HASN'T BEEN DONE IN A WHILE.

I DON'T REMEMBER THE LAST TIME THERE WAS SOME EXTERNAL LOOKING AT THE INTERNAL CONTROLS, TO ME THAT IT'S AN OPPORTUNITY TO LEARN.

IF WE HAVE SOME GAPS AND HOLES, WE'VE TALKED ABOUT SOME IN A CAPITAL PLANNING PROCESS AND THE FEET.

WE KNOW THERE'S ALWAYS OPPORTUNITIES TO GET BETTER.

FOR ME, I WELCOME THAT INPUT AND WELCOME THOSE IDEAS.

IT HELPS US GET BETTER AND THAT'S ALL TO THE GOOD FOR US TO LEARN AND GROW.

>> VERY MUCH SO, JEFF, THANK YOU VERY MUCH. APPRECIATE IT.

>> COUNCIL. AT THIS POINT, WE PROBABLY WILL BE GOING INTO THE EVENING WITH OUR AGENDA COMING UP.

>> PRETTY, GOOD.

>> WELL, WE HAVE A LOT TO GO STILL.

RALPH MORRIS IS COMING UP.

>> [BACKGROUND]

>> GET IT RIGHT IN THE LEG. COLOR EVERYWHERE.

>> WE'RE GOING TO HAVE TO TAKE NUMEROUS BREAKS JUST TO KEEP OUR BLOOD CIRCULATING IN.

>> I THINK THERE'S ANY CHANCE WE GET THE LIMIT THIS TIMELINE?

>> WHAT DO YOU MEAN? YOU MEAN PUT A TIME LIMIT ON IT?

>> RALPH, GOOD MORNING TO YOU, SIR.

>> GOOD MORNING Y'ALL.

>> GLAD TO SEE YOU.

>> MORE REASON I BEG.

>> YOUR PARDON. [LAUGHTER]

>> WELL, I FEEL LIKE I'M SAYING HI SHARKS.

FEEL LIKE I'M IN THE SHARK TANK WITH YOU GUYS.

>> RALPH, YOU LOOK VERY HIP TODAY.

GLAD TO HAVE YOU HERE AND THANKS FOR YOUR APPLICATION TO THE WARS BOARD.

AS YOU KNOW, WE'LL GIVE YOU A COUPLE OF MINUTES FOR YOUR INTRODUCTION.

THEN WE'LL OPEN UP TO QUESTIONS.

[01:35:01]

>> I APPLIED LAST YEAR AND SOME OF Y'ALL DIDN'T KNOW WHO I WAS SO THAT'S WHY I'M WHERE I'M OLD FATIGUE JACKET EXPLAIN A LITTLE BIT ABOUT THE MILITARY PIECE, WHICH IS THE FIRST THING I DID AFTER I GOT OUT OF ENGINEERING SCHOOL.

BUT I THINK A PERSON'S EXPERIENCE REALLY DEFINED THE PERSON AND I THINK MY EXPERIENCE IS SECOND TO NONE TODAY.

I WANT YOU ALL KNOW ABOUT THAT WHEN YOU MAKE YOUR CHOICES.

MY JACKET REFLECTS MY MILITARY TIME.

I WAS IN THE 82ND AIRBORNE.

I VOLUNTEERED DURING VIETNAM, WON A FEW CRAZY PEOPLE AT THAT TIME.

IT DID THAT AND GOT A COMBAT 82ND PATCH HERE AS A SECOND LIEUTENANT.

I JUMPED OUT OF GOOD PLANES AND SO OFTEN I WAS JUST FLYING AND I WONDERED HOW CAN I GET OUT OF THIS PLANE IF I HAD A PARACHUTE.

BUT ANYWAY, THE EXPERIENCE TAUGHT ME A LOT ABOUT LEADERSHIP IN ADVERSE CONDITIONS.

THAT'S WHY I'M REALLY PROUD OF MY SERVICE.

WHAT I GOT OUT OF IT, ITS SELFISH.

I LEARNED AN AWFUL LOT. I DID MY JOB.

WE ACTUALLY INVADED THE DOMINICAN REPUBLIC.

I DIDN'T HAVE TO GO TO VIETNAM BECAUSE THEY DECIDED TO SEND ME DOWN THERE.

WHEN I WENT DOWN THERE, I CARRIED MY BLENDER AND BECAME ALAN FAMOUS FOR MAKING DRINKS.

THEY NICKNAMED ME LIEUTENANT BLENDER.

TODAY, THAT'S MY BRAND, I WANT TO SHOW Y'ALL WHAT I DO AND I STILL WORK BY THE WAY, I'M NOT RETIRED.

THIS WAS THE FIRST BAG WE DID YOU CAN SEE THIS UGLY GOWN HERE.

THAT WAS SUPPOSED TO BE ME.

THE GUY NEVER MET ME, BUT IT WAS A TRIBUTE TO ME.

THEN, THIS IS OUR PRODUCT NOW.

MY SON GOT INVOLVED.

HE DIDN'T LIKE THE LOOKS OF THE BAG, SO THOSE MARKETING THINGS HAPPEN WHEN YOU GET A SMART MARKETING PERSON.

ANYWAY, WHEN I WAS A YOUNG PERSON, MY DAD WAS A ARMY CAREER, ARMY SERGEANT AND WE TRAVEL THE WORLD.

I HAD SPENT TWO YEARS IN PAKISTAN WHEN I WAS 14 YEARS OLD, LEARNED THAT MUSLIMS DON'T DRINK IN THEIR COUNTRY.

BUT INDIANS DO. I KNOW THAT PART.

WHEN I WENT TO GEORGIA TECH ON SCHOLARSHIP, I GOT AN ELECTRICAL ENGINEERING DEGREE AND THEN I ATTENDED ROTC, BECAME THE ACTING BRIGADE COMMANDER OF ROTC.

DID MY JOB BACK IN THOSE DAYS AND THAT'S WHEN VIETNAM WAS COMING ALONG AND I VOLUNTEERED TO BE A PAIR OF DRUBER IN THE 82ND AIRBORNE, AS IT TURNED OUT AND THAT'S HOW I ENDED UP IN THE DOMINICAN REPUBLIC.

AFTER I GOT OUT, THE MOST IMPORTANT THING THAT EVER HAPPENED TO ME IN MY LIFE AS I MET MY WIFE, LINDELL, WE WERE MARRIED AND WE'VE BEEN MARRIED FOR 56 YEARS AND COUNTING.

I ALSO GOT A FELLOWSHIP TO THE HARVARD BUSINESS SCHOOL BECAUSE I WANTED TO GET INTO BUSINESS.

I DIDN'T WANT TO BE AN ENGINEER.

I LEARNED AN AWFUL LOT THERE ABOUT HOW YOU LOOK AT SITUATION AS YOU ANALYZE THEM AND YOU MAKE THE BEST CHOICES.

THERE'S A WHOLE YEAR SPENT ON DOING THAT.

WHEN I LOOK AT THE WARS BOARD, I THINK I CAN HELP A LITTLE BIT.

I THINK THEY'RE DOING A GREAT JOB.

THEY HAVE A LOT OF OPPORTUNITIES IN FRONT OF THEM.

BUT SOMETIMES A LITTLE HELP ON LOOKING AT THINGS AND ASKING QUESTIONS, I THINK IS REALLY IMPORTANT.

MY PROFESSIONAL CAREER AFTER BUSINESS SCHOOL, WENT TO WORK AS THE VICE PRESIDENT OF DEVELOPMENT FOR THE NUMBER ONE SHOPPING CENTER IN THE UNITED STATES, LENOX SQUARE IN ATLANTA.

I WAS RESPONSIBLE FOR THE LEASING.

I LIKE IN MY EXPERIENCE THEY ARE TO THE EXPERIENCE WE NOW ARE ENJOYING AT THE PORT.

LENOX WAS BEING NUMBER 1 IF YOU WANTED TO BE IN LENOX, YOU HAD TO MAKE THE DEAL WE WANTED TO MAKE.

A TYPICAL SHOPPING CENTER, THE LANDLORD HAS A LOT OF MONEY THAT HE'S FINANCED AND HE BUILDS YOUR SPACE OUT.

IN LENOX WE DIDN'T BUILD SPACES OUT.

[01:40:02]

WE GAVE YOU A LEASE AT SOME OF THE HIGHEST RATES IN THE COUNTRY, AND THEN YOU BUILT YOUR SPACE OUT.

I SEE THE PORT NOW IS AT THAT POSITION.

WE JUST COMPLETED A DEAL WITH ROYAL CARIBBEAN, WHERE THEY BUILT MOST OF WHAT THEY NOW OCCUPY AND WERE GENERATING GOOD INCOME, IT SEEMS OFF OF THAT.

BUT I THINK YOU NEED TO LEVERAGE THAT AND ANY FUTURE PORT DEALS YOU DO SHOULD BE EVEN BETTER.

YOU SHOULD REALLY START WITH EVERYTHING YOU WANT.

BECAUSE LIKE LENOX WAS UNIQUE IN THE UNITED STATES, I BELIEVE GAUSS AND AS UNIQUE AS A CRUISE DESTINATION HERE ON THE SOUTHERN GULF COAST.

I THINK YOU CAN LEVERAGE YOUR DEALS REALLY WELL.

MY POINT THERE IS, I KNOW THERE'S CONSIDERATION FOR US THE PORT FINANCING $100 MILLION.

I BELIEVE THAT WAS THE NUMBER TO BUILD A TERMINAL 4 AND I REALLY DON'T THINK YOU HAVE TO DO.

THE OTHER JOB AS I'VE HAD AS I STARTED A FROZEN YOGURT CHAIN, ONE OF THE FIRST AND THE UNITED STATES.

I EXPANDED AROUND THE COUNTRY.

ONE ON MY BEST FROZEN YOGURT STORE WAS IN THE GALLERY IN HOUSTON.

THAT'S WHAT BROUGHT ME TO TEXAS FROM ATLANTA.

GOT THE KIDS TO COME TO TEXAS BY TELLING THEM WE'RE GOING TO GO LIVE ON THE BEACH IN GALVESTON.

THAT GOT THEM OUT OF ATLANTA, WHICH THEY WERE PERFECTLY HAPPY WITH.

BUT WE MOVE TO THE WEST BEACH AND RENTED A PLACE.

THOUGH WE HAD OUR BUSINESS IN HOUSTON.

MY WIFE AND I DROVE EVERY DAY TO HOUSTON.

AN HOUR-AND-A-HALF EACH WAY A DAY IT WILL TAKE A TOLL ON YOU AS I'M SURE SOME OF YOU ALL HAVE EXPERIENCED.

WE MOVED TO HOUSTON.

WE LIVE THERE FOR 15 YEARS, BUT ALWAYS WANTED TO GET BACK TO GALVESTON.

IN ABOUT 2001, WE FINALLY MADE A DEAL FOR THE PURITY ICE CREAM FACTORY, WHICH IS OVER ON 12TH IN POST OFFICE.

THE BEAUTY OF NOBODY WANTED IT.

SO WE MADE A GOOD DEAL.

THE LANDLORD, THE OWNER AT THAT TIME WAS JACK KING OVER ON THE STRAND.

JACK WAS RACING CARS AND THEY NEED THE MONEY.

WE MADE A DEAL IN 10 MINUTES AND WE MOVE DOWN FIXED UP THE CORNER STORE WHICH MY WIFE AND I AND DAUGHTER LIVE IN.

THEN THE REST OF THE WHOLE ICE CREAM FACTORY WRAPS AROUND. THAT'S MY PLAN.

THEN AFTER I GOT THE GALVESTON, WE STARTED MEETING A LOT OF GALVIN ESTONIANS WHO LOVED MARGARITAS, I INVENTED THE COCKTAIL IS IN A BAG THAT YOU SEE HERE.

WE SAY ALL THIS ALL OVER THE WORLD.

IN THE EAST ENDERS HAVE ENJOYED SAMPLING OUR PRODUCTS AS WE COME OUT WITH NEW FLAVORS.

BUT IT'S BEEN A FUN EXPERIENCE.

THEN LIKE I SAID, I'VE VOLUNTEERED FOR THE MILITARY TO SERVE MY COUNTRY AND I'VE BEEN VOLUNTEERING TO SERVE MY COMMUNITY EVER SINCE.

IN ATLANTA, I WAS CHAIR OF THE CHAMBERS TRANSPORTATION COMMITTEE WHEN WE WERE BUILDING A NORTH ATLANTA PARKWAY AND THAT'S NOW BUILT A LITTLE PIECE OF STARTING THAT, HELPING WITH THAT.

THEN MOVE TO HOUSTON, LIVED IN MILAN AND AGAIN, SHARE THE TRANSPORTATION COMMITTEE BECAUSE I LIKE TRANSPORTATION.

WE WERE MEETING WITH THE FOLKS ON EXPANDING THE HOUSTON EXPRESSWAYS AND THE CONCERNS OF THE CITIZENS THERE.

OF COURSE, WHEN I CAME TO GALVESTON, I LOVE GALVESTON, HAVING LIVED ALL OF THE DIFFERENT SOUTH AND PLACES AND IT WAS MY IDEAL PERFECT COMMUNITY NEIGHBORHOOD.

GOT ACTIVE IN THE EAST END NEIGHBORHOOD ORGANIZATION, BECAME PRESIDENT OF THE GALVESTON THE LINES VIOLENT NEIGHBORHOODS, THE GAIN ORGANIZATION.

THEN RAN FOR OFFICE AND WAS A CITY COUNCIL PERSON FOR 2014-2016.

AS FOLKS MIGHT REMEMBER, I WAS AN INDEPENDENT PERSON THERE AND THAT'S WHY I WASN'T THERE ANYMORE AFTER THAT.

BUT ONE OF THE THINGS I DID DO IS LEAD THE RESOLUTION TO BUILD THE PELVIC CANAL AND BRIDGE.

WE PASS THAT IN OUR COUNCIL.

[01:45:01]

NOW IT LOOKS LIKE WE'RE FINALLY GETTING CLOSE TO BUILD ON IT, WHICH WILL BE VERY IMPORTANT AND GOING FORWARD TO TAKE ADVANTAGE OF THE PELICAN ISLAND PROPERTY OVER THERE.

ONE OF THE THINGS I WOULD LIKE TO SEE US DO IS MAKE A DEAL WITH PORT OF HOUSTON.

THERE ARE A LOT OF WAYS TO MAKE DEALS.

I'VE BEEN IN REAL ESTATE, OPEN HOME FOR MANY YEARS.

SO I'M WRAP UP.

I KNOW YOU DON'T HAVE A LOT OF TIME.

>> WE GOT SOME QUESTIONS TOO, ROUND EACH AGE YOUR TIME.

>> BUT I THINK THE LAST THING I WANTED TO SAY IS I REALIZE THERE TO INCUMBENTS RUNNING AND FILLING UP THE TWO OPEN SLOTS.

BUT I THINK THERE'S A COUPLE OF OTHER FOLKS ON THE WARDS BOARD NOW, PATTERSON AND YARBOROUGH, THEY CAN DO A REALLY GOOD JOB OF RUNNING THAT WARS BOARD.

I'D LIKE TO DISPLACE MR. MAXWELL AND I'LL PUT MY CREDENTIALS AGAINST HIS ANY DAY EVEN INCLUDING ANY ACCOUNTING.

THAT'S SOME OF WHAT I WANTED TO PRESENT. THAT'S WHO I'M.

I WANTED YOU ALL TO KNOW THAT.

I'M OPEN TO ANY QUESTIONS YOU ALL MAY HAVE.

>> THANK YOU, RALPH. ANY QUESTIONS COUNCIL, THAT YOU WANT TO ASK, MR. MIKE MORRIS?

>> YES. BYE. THANKS FOR APPLYING FOR VOLUNTEER POSITION, BUT PROBABLY TAKE UP A LOT OF YOUR TIME.

MY QUESTION IS, DO YOU THINK THE PORT IS DIVERSIFIED PROPERLY?

>> I THINK THERE ARE OPPORTUNITIES TO CONTINUE TO DIVERSIFY.

BOTH TOWARD THE WEST, THERE'S SOME OPPORTUNITIES THERE.

I'M WONDERING, AS I'VE LOOKED AT THE FINANCIAL STATEMENTS, READ THEM.

READING THE QUARTERLY REPORT, AND YOU GOT TO CONSIDER THE COST OF SOME OF THE DEVELOPMENT PLANS THAT ARE ON THE WEST END.

YOU WANT TO MAKE SURE THAT ANY, ANY INVESTMENT YOU MIGHT GO ON WESTWARD JUSTIFIES THE EXPENSE OF THE INVESTMENT.

IT LOOKS PRETTY MUCH LIKE IF YOU DO GO THAT WAY AND INVEST, WE'RE GOING TO HAVE TO, THE CITY IS GOING TO HAVE TO APPROVE THE MONEY TO DO THAT.

BUT THEY'RE DIFFERENT.

THERE ARE A LOT OF OPPORTUNITIES IS GOING THAT WAY.

I THINK THE BETTER OPPORTUNITY FOR EXPANSION WILL BE PELICAN ISLAND.

I THINK THAT'S KEY.

THE KEY THERE IS, OF COURSE, MAKING A DEAL.

WE HAVE SOME PROPERTY OVER THERE, BUT MAKING A DEAL WITH THE PORT OF HOUSTON, AND THAT GIVES YOU AN OPPORTUNITY THERE.

I LIKE THE IDEA THAT SOMEONE CAME UP WITH THAT.

IF THE CRUISE TERMINALS ARE SHUT DOWN DUE TO ANOTHER PANDEMIC, WE CAN STILL USE THOSE TERMINALS FOR LAY CARGO OR BRINGING CARGO AND CONTINUE BECAUSE I THINK THAT THE PORT DID A GREAT JOB SCRAMBLING THIS LAST TIME AND COMING UP WITH INCOME SOURCES WHEN THEY LOST THE INCOME FROM THE CRUISE LINES.

WE HAVE TO RECOGNIZE THE CRUISE LINE THAT THE PANDEMIC IS OVER ONCE IN 100 YEAR EVENT.

BUT WHO KNOWS? IT COULD HAPPEN AGAIN.

WHEN YOU PLAN, YOU HAVE TO HAVE CONTINGENCIES FOR EVERYTHING YOU CAN PREDICT.

SOMETIMES THINGS WILL HIT YOU.

THEY DIDN'T PREDICT COURSE, NOBODY PREDICTED THE PANDEMIC.

BUT NOW WE'VE GOT THAT UNDER OUR BELT.

I THINK DIVERSIFICATION OF THE PORT IS IMPORTANT.

BUT ALSO, I THINK IT'S PRETTY OBVIOUS THAT AT LEAST I THINK IT'S OBVIOUS THAT CRUISE TERMINALS ARE REALLY THE BIGGEST MONEY GENERATOR AND THE RESIDUAL EFFECT TO THE ISLAND AND THE PORT TAX MONEY FROM THE HOTELS.

ALL THAT BENEFITS ECONOMICALLY BENEFITS, PLUS ALL THE JOBS THAT ARE CREATED.

YOU'RE LOOKING AT JOBS ALSO COULD BE CREATED BY LATE TERMINAL.

>> THANK YOU, RALPH, ANY FURTHER QUESTIONS AT ALL, COUNCIL? RALPH. THANK YOU.

>> WELL, THANK YOU ALL FOR HAVING ME.

>> THANK YOU FOR YOUR APPLICATION TOO.

GREAT WE APPRECIATE THAT.

>> I'VE ASKED TO SEE YOU GUYS.

I LIKE TO TALK TO YOU INDIVIDUALLY ABOUT THE BOARD.

I THINK I CAN SHARE A LOT MORE IDEAS IN A LITTLE BIT LONGER TIMEFRAME.

THANK YOU FOR YOUR TIME.

>> THANK YOU. APPRECIATE IT.

VERY GOOD. WE'RE MOVING NOW COUNCIL INTO THE PLANNING COMMISSION APPLICANTS.

WE HAVE JOHN LIGHTFOOT WOULD BE THE NUMBER 1 CANDIDATE. EXCUSE ME.

[01:50:05]

IF YOU WOULD LIKE. SURELY. IT'S 10:50.

WE'LL RECONVENE AT 10:55.

WE'RE WELCOMING JOHN LIGHTFOOT AS OUR FIRST INTERVIEW FOR THE PLANNING COMMISSION.

[5.2 Planning Commission]

JOHN WE'LL GIVE YOU ABOUT A MINUTE OR SO FOR AN INTRODUCTION AND THEN OPEN IT UP FOR QUESTIONS FROM COUNCIL. GO RIGHT AHEAD, SIR.

>> WELL, MY NAME IS JOHN LIGHTFOOT.

I RETIRED TO GALVESTON IN AUGUST OF 2018.

I'VE BUILT MY HOUSE DOWN ON THE FAR WEST END IN POINT SAN LUIS.

I WANTED TO STAY ACTIVE IN THE COMMUNITY AND MAKE A CONTRIBUTION BECAUSE I'VE GOT A LONG HISTORY OF WORK EXPERIENCE IN REAL ESTATE AND SUBDIVISION DEVELOPMENT.

I FIRST BECAME ACTIVE ON THE HOA, BECAME THE BOARD PRESIDENT IN POINT SAN LUIS AND CONTINUING TO SERVE IN THAT CAPACITY.

I'M INVOLVED WITH THE WGIPOA ORGANIZATION AND SERVE AS A DIRECTOR ON THAT.

THREE YEARS AGO, I VOLUNTEERED AND WAS ACCEPTED AS A BOARD MEMBER OF THE RDA AND SERVED IN THAT CAPACITY FOR THREE YEARS.

I FELT LIKE IN MY EXPERIENCE, I HAD MORE TO CONTRIBUTE TO THE COMMUNITY.

SO WHEN I HEARD THAT THERE WAS AN OPPORTUNITY TO BE ON THE PLANNING COMMISSION, I THREW MY HEAD IN THAT RING AND HERE I AM.

>> VERY GOOD. THANK YOU, JOHN.

I APPRECIATE THAT INTRODUCTION. MURRAY.

>> HI, JOHN. GOOD TO SEE YOU.

>> MORNING.

>> I'M HAPPY THAT YOU APPLIED FOR THIS AND I THANK YOU FOR YOUR SERVICE ON THE RDA AND I KNOW YOU HAD A FRUSTRATING COUPLE OF YEARS.

I HAVE HAD THE PLEASURE OF KNOWING JOHN FOR A LONG TIME BECAUSE WE BOTH LIVED IN BERMUDA BEACH AND BOTH HAD THE DISPLEASURE OF HAVING [INAUDIBLE] TAKE OUR HOUSES, HENCE, WHAT GOT ME INTO POLITICS.

BUT I'M SO HAPPY TO HAVE YOU HERE AS A FULL-TIME CITIZEN AND I'M CERTAINLY FAMILIAR WITH YOUR SERVICE.

WHAT DO YOU THINK YOU WOULD BRING? CAN YOU TELL A LITTLE BIT ABOUT YOUR BACKGROUND, BECAUSE IF I'M NOT MISTAKEN, YOU'RE A DEVELOPER?

>> YES. I'VE DEVELOPED ABOUT A DOZEN SUBDIVISIONS, ABOUT 700 RESIDENTIAL LOTS AND THESE LOTS VARIED FROM PATIO HOME, TOWN HOME DEVELOPMENTS TO SINGLE-FAMILY CUSTOM HOMES THAT RANGE IN VALUE FROM $100,000 ON THE LOW END TO FOUR MILLION ON THE HIGH END.

MY LAST PROJECT WAS IN A EIGHT LOT SUBDIVISION THAT I DEVELOPED.

EIGHT HALF-ACRE LOTS.

THE HOMES AVERAGED ABOUT A MILLION A PIECE.

I FINISHED THE LAST HOUSE IN ACTUALLY 2019, I WAS LIVING DOWN HERE AND COMMUTING BACK AND FORTH TO FINISH THAT LAST HOUSE.

BUT SINCE I'VE BUILT ONE HOUSE, IN FACT, I JUST COMPLETED A HOUSE FOR MY SISTER IN MY OWN NEIGHBORHOOD.

SHE'S GOT A BEACH FRONT PROPERTY IN POINT SAN LUIS AND SHE JUST OCCUPIED THAT HOUSE IN JUNE OF THIS YEAR OR SO.

>> TO THAT POINT, YOU'RE FAMILIAR WITH THE CITY'S LDRS, THE BEACH RULES AND SO FORTH AND SO ON?

>> I KNOW A LOT OF THE RULES THAT APPLY TO THE BEACHFRONT CONSTRUCTION.

YES, I HAVE NOT GONE THROUGH THE LAND DEVELOPMENT REGULATIONS.

THERE'S A LOT OF MATERIAL THERE, BUT I WOULD BE FAMILIAR WITH IT CERTAINLY IF I WAS ON THE PLANNING COMMISSION.

>> [INAUDIBLE] ON A NIGHT WHEN YOU CAN'T SLEEP, IT'S TIME TO READ IT BECAUSE IT WILL HELP YOU FALL ASLEEP.

IT'S VERY LONG, VERY TEDIOUS.

>> VERY GOOD. ANY OTHER QUESTIONS FOR MR. LIGHTFOOT? DAVID.

>> PRIOR TO THIS, I WAS ON PLANNING COMMISSION, AND SO MY VIEW OF THE WORLD IS SEEN THROUGH THAT LENS SO THE EXPERTISE THAT YOU HAVE PREVIOUSLY, CERTAINLY I CAN UNDERSTAND HOW THAT WOULD BENEFIT THE PLANNING COMMISSION.

MY MAIN QUESTION TO YOU IS, THE CITY HAS A PROCESS CALLED PLANNED UNIT DEVELOPMENTS WHEREBY DEVELOPERS CAN APPLY FOR A VARIETY OF VARIANCES FROM OUR DEVELOPMENT ORDINANCES.

CAN YOU DESCRIBE YOUR VIEW AND UNDERSTANDING OF THAT, AND THEN HOW THAT NEEDS TO BE APPLIED TO THE ENTIRE ISLAND? [LAUGHTER]

>> WELL, I'LL TRY.

THE PROVISION IS THERE BECAUSE SOMETIMES IT'S ESSENTIAL TO HAVE A VARIANCE.

[01:55:04]

YOU CAN'T DO YOUR PROJECT WITHOUT IT.

I'VE HAD TO GET MYSELF FROM THE CITY OF HOUSTON ON A CERTAIN NUMBER OF PROJECTS.

BUT I WOULD NOT BE QUICK TO GRANT THOSE, IT'S GOT TO MEET A TEST.

IF IT DOESN'T MEET THE TEST, THEN YOU JUST CAN'T HAND THOSE OUT BECAUSE IT SETS A BAD PRECEDENT, IN MY OPINION.

>> THANK YOU. APPRECIATE IT.

>> ANY FURTHER QUESTIONS, MR. LIGHTFOOT?

>> JOHN, I WANT TO THANK YOU.

YOU'VE PROVIDED SERVICE AND YOU'VE VOLUNTEERED FOR OTHER COMMITTEES FOR THE CITY AND DONE A VERY GOOD JOB WITH THOSE.

APPRECIATE THAT.

ONE QUESTION FOR YOU.

YOU BUILD A HOME HERE SO YOU HAD TO GO THROUGH OUR BUILDING PERMITTING PROCESS AND ALL THAT, COULD YOU SINGLE OUT ONE THOUGHT ABOUT WHAT WE COULD DO TO MAYBE STREAMLINE THAT AND MAKE IT MORE USER-FRIENDLY IN YOUR MIND OR IS IT AT A POINT THAT WE FEEL IT'S VERY APPROPRIATE TO HAVE IT AS IT IS?

>> WELL, MY FIRST HOME THAT I CONSTRUCTED HERE WAS MY OWN PERSONAL RESIDENCE, THAT WAS IN 2018 AND AS I MENTIONED, I JUST FINISHED MY SISTER'S HOUSE IN 2023.

THERE IS A DEFINITE IMPROVEMENT, IT WAS DIFFICULT IN 2018.

BUT THIS PROJECT, EVEN THOUGH I ENCOUNTERED MANY DIFFICULTIES FROM A SUPPLY CHAIN, NOT RELATED TO THE CITY, BUT THE CITY SIDE OF IT FLOWED VERY WELL.

THE INSPECTIONS, THE FACT THAT YOU CAN REQUEST THOSE ONLINE, IT WORKED REALLY WELL.

>> VERY GOOD. THANK YOU VERY MUCH.

>> I'VE GOT A QUESTION.

>> YES, JOHN. GO RIGHT AHEAD.

>> MR. LIGHTFOOT, DAVID ASKED THE QUESTION ABOUT PUDS AND VARIANCES.

I'M SORRY, I DIDN'T QUITE GET ALL THAT.

ONE QUESTION ABOUT PUDS AND VARIANCES, AND I'M THE EX-OFFICIAL OF PLANNING COMMISSION CURRENTLY, BUT WE DON'T SEE A LOT OF PUDS AND VARIANCES, BUT LATELY THAT TREND HAS BEEN PICKING UP A LITTLE BIT.

I THINK A PUD IS A VALUABLE TOOL THAT WE HAVE HERE IN OUR LDRS FOR PROJECTS THAT DON'T QUITE MEET THE REGULATIONS, BUT ARE WORTHY OF CONSIDERATION.

WHEN THOSE APPLICATIONS COME TO PLANNING, COULD YOU TELL ME WHAT YOU WOULD BE LOOKING AT IN CONSIDERING OR NOT CONSIDERING APPROVAL ON SOMETHING LIKE THAT?

>> WELL, THE FIRST THING I WOULD LOOK AT IS THE STAFF'S OPINION IN THEIR REPORT, DOES IT COMPLY WITH ALL THE RULES AND REGULATIONS OF THE DEVELOPMENT, THE GUIDELINE, AND THE CODE IN GENERAL? I WOULD BE RELYING HEAVILY ON THAT.

BEYOND THAT, I JUST HAVE TO LOOK AT IT FROM THE STANDPOINT, IS THIS SOMETHING THAT THE COMMUNITY NEEDS AND IS IT COMPATIBLE WITH THE SURROUNDING AREA? NOT EVERY PROJECT THAT CAN BE DEVELOPED SHOULD BE DEVELOPED AND I WOULD TAKE A HARD LOOK AT THAT.

>> IF I UNDERSTOOD THAT RIGHT, YOU'D BE LOOKING AT STAFF RECOMMENDATIONS AND THAT WOULD BE A PRETTY LARGE FACTOR IN YOUR CONSIDERATION.

>> MAJOR FACTOR, YES.

>> THEN JUST YOUR OWN JUDGMENT OF COURSE, ON WHETHER YOU THOUGHT IT WAS A GOOD PROJECT OR WORTHY OF THE VARIANCES THAT ARE REQUIRED FOR THOSE PROJECTS BECAUSE THAT'S BASICALLY WHAT A PUD DOES OR CAN BE, IT COMES TO PLANNING BECAUSE THEY CAN'T QUITE MEET ALL OF THE REGULATIONS THAT ARE WITHIN THE LDR. THANK YOU VERY MUCH.

>> VERY GOOD. ANY OTHER QUESTIONS?

>> THANK YOU, JOHN, SO MUCH. APPRECIATE IT.

WE'LL MAKE OUR SELECTIONS ON SEPTEMBER 21ST, SIR. THANK YOU.

>> NORMA LOWRY IS OUR NEXT APPLICANT.

>> HAS SHE APPLIED BEFORE?

>> SHE SEEMED LIKE SHE IS.

THE NAME IS FAMILIAR.

>> I KNOW THE NAME. [BACKGROUND]

>> SHE LIVES ON 0.5.

I THINK SHE'S IN YOUR DISTRICT.

>> NORMA, GOOD MORNING.

>> GOOD MORNING, SIR. HOW ARE YOU?

>> I'M FINE AND I WANT TO THANK YOU FOR YOUR PATIENCE.

YOU'VE [OVERLAPPING] BEEN IN THE GREEN ROOM WAITING.

ANYWAY, GLAD TO HAVE YOU HERE, AND THANK YOU FOR YOUR APPLICATION.

[02:00:02]

GIVE YOU ABOUT A MINUTE FOR INTRODUCTORY COMMENTS AND THEN WE'RE GOING TO OPEN IT UP FOR QUESTIONS FOR [OVERLAPPING] COUNSELING.

>> ABSOLUTELY. I'M A RELATIVELY NEW RESIDENT OF THE ISLAND AND THIS TIME AROUND, I LIVED HERE OUT ON WESTON FOR ABOUT SIX YEARS AND THEN RETIRED AND HAVE MOVED HERE PERMANENTLY IN JANUARY 2022.

IT'S EXCITING TO BE HERE, TO BE INVOLVED IN THIS COMMUNITY.

YOU'LL HEAR ME SAY THAT THE CITIZENS OF GALVESTON HAVE BEEN GIVEN A VALUABLE RESOURCE AND WE ARE THE STEWARDS OF THAT RESOURCE.

I'VE GOT A LOT OF EXPERIENCE IN THE LEGAL PROFESSION, A LOT OF EXPERIENCE IN THE NON-PROFIT AREA.

THIS IS MY PART IN GIVING BACK TO THE COMMUNITY AS WE MOVE FORWARD WITH A LOT OF THINGS HAPPENING. THAT'S ME.

>> YOU WANT TO PULL THE MIC A LITTLE.

>> I'LL STAND BACK THEN.

>> TO BE IN LINE.

>> THANK YOU, NORMA. VERY GOOD.

QUESTIONS FROM COUNCIL MEMBERS, DAVID FINKLEA.

>> HI, NORMA.

>> HI, DAVID.

>> CAN YOU TELL ME A LITTLE BIT ABOUT YOUR BACKGROUND IN THE LEGAL PROFESSION AND HOW THAT WOULD BE A BENEFIT TO THE PLANNING COMMISSION?

>> YES. AS I SAID, I'VE GOT ABOUT 35 YEARS OF EXPERIENCE IN THE LEGAL PROFESSION, WORKING FOR LAW FIRMS AND OIL AND GAS COMPANIES, UNIT TEXAS PETROLEUM, ENRON, DUKE ENERGY, SPECTRAL ENERGY.

I SERVED IN THE CORPORATE AND SECURITIES AREA.

I WAS RESPONSIBLE FOR THE BOARD MEETINGS, THE BOARD MATERIALS, AS WELL AS THE DATA ROOMS WHEN WE DID FINANCIAL TRANSACTIONS.

SIMPLE ANSWER IS THESE RELATE TO DELIGHTFUL, IMPORTANT ORGANIZATIONAL SKILLS AS WELL AS A GREAT ATTENTION TO DETAIL.

YOU CANNOT RUN A BOARD MEETING WITHOUT MAKING SURE THAT YOU'RE MEETING MATERIALS ARE IN ORDER, NO TYPOS, NO MATHEMATICAL ERRORS, OR ANYTHING LIKE THAT.

THEN MOST RECENTLY, I HAVE THE OPPORTUNITY TO MOVE INTO THE NON-PROFIT AREA AS EXECUTIVE DIRECTOR OF CYPRUS CREEK CHRISTIAN COMMUNITY CENTER.

AGAIN, USING THOSE SAME ORGANIZATIONAL SKILLS AS WE TRY AND RECOVER FROM HURRICANE HARVEY, I WAS THE PROJECT MANAGER FOR THE RENOVATIONS, WE HAD ABOUT TWO-AND-A-HALF FEET OF WATER IN OUR FACILITIES.

AS PROJECT MANAGER AND THEN ALSO, I WAS RESPONSIBLE FOR THE PUBLIC ASSISTANCE APPLICATION WITH FEMA AND WAS ABLE TO RAISE ABOUT $1.2 MILLION IN PUBLIC ASSISTANCE FROM FEMA FOR OUR RECONSTRUCTION.

DOES THAT ANSWER YOUR QUESTION, DAVID?

>> YES, IT DOES. THANK YOU.

>> HELLO. GOOD TO SEE YOU AGAIN.

>> VERY GOOD, MARIE.

>> GOOD TO SEE YOU TOO.

>> WE HAD THE PLEASURE OF JUDGING CHRISTMAS LIGHTS IN ANN ARBOR [LAUGHTER] LAST YEAR, BUT HOPEFULLY, WE'LL DO IT THIS YEAR.

CAME WITH NICE CHAMPAGNE AND TREATS.

>> WE DID. IT WAS DELIGHTFUL.

>> ARE YOU FAMILIAR WITH OUR LDRS AND BEACHFRONT CONSTRUCTION AND THE DIFFERENT THINGS THAT YOU HAVE TO DEAL WITH WHEN YOU'RE ON THE PLANNING COMMISSION?

>> I HAVEN'T DELVED INTO THE 2015 SPECIFICS YET.

I THINK THAT IT'S IMPORTANT TO EVALUATE EACH APPLICATION AND EACH SCENARIO SPECIFICALLY WITH WHICH REGS IT SPEAKS TO AND NEEDS TO BE ADDRESSED.

I CAN'T QUOTE THE BIBLE VERSE AND NUMBER, BUT I CAN TELL YOU THAT ONCE WE DO GET A REQUEST, IT'S GOING TO HAVE TO BE DEALT WITH LINE-BY-LINE TO MAKE SURE THAT THE REGS ARE FOLLOWED.

IT'S EXTREMELY IMPORTANT.

AGAIN, WE ARE STEWARDS, AND BEING A GOOD STEWARD MAKES SURE THAT WE TAKE GOOD CARE OF THAT RESOURCE, AND THE PLANNING COMMISSION IS THE OPPORTUNITY TO TAKE THOSE REGS AND ENFORCE THOSE REGS.

>> IF IT MAKES YOU FEEL BETTER, I DON'T KNOW THEM BY LINE OR NOT.

[LAUGHTER] I DON'T EVEN THINK JOHN DOES BECAUSE IT'S SOMETHING THAT BIG.

>> IT'S A LOT, BUT THAT'S JUST PART OF THE PROCESS BECAUSE IT'S NOT YOUR JOB OR OUR JOB AS THE COMMISSION TO KNOW EXACTLY WHICH REG MAKES THE DIFFERENCE IN EVALUATING A QUESTION, BUT AT LEAST YOU'RE FAMILIAR WITH IT.

YOU KNOW THE TABLE OF CONTENTS AND YOU CAN GO TO THAT REG. YES.

>> THANK YOU FOR APPLYING.

>> YOU BET.

>> IF YOU COULD RECITE THE LDRS TO US, THAT WOULD BE A GIFT. [LAUGHTER]

>> NO, SIR.

>> THAT WOULD EXCLUDE YOU COMPLETELY NORMAL BECAUSE [LAUGHTER] YOU WOULD HAVE NO LIFE.

[02:05:04]

>> JUST TOO MANY YEARS EXPERIENCE WITH THE SECURITIES AND EXCHANGE COMMISSION AND ALL OF THEIR REGULATIONS, SO CAN'T DO IT.

BUT THANKS FOR THE OPPORTUNITY.

>> ANY OTHER QUESTIONS? COUNCIL MEMBERS? NORMA, THANK YOU SO MUCH.

WE WILL MAKE OUR SELECTIONS ON SEPTEMBER 21ST.

GREATLY APPRECIATE YOUR APPLICATION AND LOOKING FORWARD TO IN SOME MANNER SEEING YOU IN THE FUTURE.

>> WELL, I'M LOOKING FORWARD TO IT TOO. THANK YOU.

>> WE HAVE RUSTY WALLA WHO IS UP FOR REAPPOINTMENT.

>> I TOLD THEM THAT WHEN THEY HIT YESTERDAY.

RUSTY, HOW ARE YOU?

>> GOOD MORNING.

>> GOOD MORNING TO YOU.

I'M GLAD TO HAVE YOU.

THANK YOU FOR YOUR PATIENCE TODAY.

IT'S BEEN A LONG MORNING FOR YOU.

GIVE YOU ABOUT A MINUTE OR SO TO INTRODUCE YOURSELF AND THEN WE'LL OPEN UP FOR QUESTIONS.

>> CERTAINLY. MY NAME IS RUSTY WALLA.

I'M 61 YEARS OLD.

ME AND MY WIFE SHARON BEEN MARRIED FOR 30 YEARS.

WE HAVE FOUR SONS.

WE CURRENTLY LIVE ON THE WEST END.

I'VE LIVED DOWN THERE ABOUT SIX OR SEVEN YEARS.

BEEN DOING BUSINESS IN GALVESTON FOR 20 PLUS YEARS.

CRAIG WAS ON PLANNING COMMISSION WHEN WE WERE DOING SOME STUFF THEN.

I HAVE MY SONS, ODDLY ENOUGH, SO WE'VE MOVED HERE.

I HAVE THREE OF MY SONS NOW ALSO LIVE HERE.

ONE WORKS FOR ME.

ANOTHER WORK FOR THE PORT OF HOUSTON.

THEIR WIVES, ONE'S A SCHOOL TEACHER, THE OTHER ONE WORKS FOR THE PARK BOARD.

I HAVE ANOTHER SON WHO IS NOW A LONG SHORE MEN.

HE'S A MEMBER OF THE LOCAL 20, SO WE'RE HITTING ALL OF THAT.

THE FUNNY THING IS CRAIG, JUST BRIEFLY, I'M NERVOUS EVERY TIME I STAND OVER HERE AND I THINK IT'S A GOOD THING.

I'VE STOOD OVER HERE WHEN YOU WERE ON PLANNING COMMISSION.

A LOT OF HOURS AND I WOULD TELL YOU GUYS THAT I THINK THAT'S PART OF WHAT I BRING IS I'VE STOOD HERE.

I KNOW WHAT IT'S LIKE TO BE A LITTLE NERVOUS STANDING HERE.

I WOULD LIKE TO THINK THAT WHAT I CONTRIBUTE TO PLANNING COMMISSION AS THAT I KNOW THAT AND I HOPE THAT PEOPLE WHEN THEY COME BEFORE THE COMMISSION, I MAKE THEM FEEL WELCOME AND AT EASE.

THAT'S JUST A LITTLE BIT ABOUT ME.

I KNOW SOME OF YOU I KNOW FAIRLY WELL.

SOME NOT SO MUCH SO.

BUT HAVE ANY QUESTIONS THAT YOU'D LIKE TO ASK.

>> SURELY. ANY QUESTIONS, COUNCIL MEMBER DAVID.

>> LESLIE, THANKS FOR YOUR SERVICE ON THE PLANNING COMMISSION.

>> CERTAINLY.

>> I THINK YOU'VE TURNED OUT TO BE A PRETTY GOOD ADDITION.

>> OH, THANK YOU, DAVID.

>> COUPLE OF YOUR COLLEAGUES UP HERE COULD PROBABLY SPEAK TO THAT.

WHAT HAS BEEN A CHALLENGE FOR YOU ON PLANNING? PEOPLE OFTEN ASK ME ABOUT BEING ON CITY COUNCIL? WHAT TOOK YOU BY SURPRISE AND THEY'RE LIKE ALL OF IT.

BUT WHAT HAVE YOU LEARNED AS IT WERE THAT YOU DIDN'T KNOW YOU WERE GOING TO FACE OR DO OR HAVE TO DECIDE ON BLACK.

>> THAT'S A GREAT QUESTION.

I WILL TELL YOU THIS BECAUSE AGAIN, I'VE STOOD ON THIS SIDE A LOT AND I WOULD TELL YOU THAT I USUALLY WOULD SHOW UP AND THINK THAT EVERYBODY ON THIS SIDE WAS MY ADVERSARY.

AND I'VE LEARNED THAT'S NOT THE CASE.

I'VE ALSO LEARNED A LOT BECAUSE THERE ARE SOME PLANNING COMMISSIONERS THAT WE ARE ON POLAR OPPOSITE ENDS OF THE SPECTRUM.

WHAT I'VE LEARNED IS THAT FOR ME PERSONALLY, IS THAT AT THE END OF THE DAY, WE ALL HAVE TO GET ALONG.

IT'S OKAY IF WE DISAGREE.

BUT IN IN THE DAY WE HAVE TO GET ALONG AND I AND I DO THINK THAT HAVING FOLKS THAT ARE NOT LIKE-MINDED IS A GOOD THING.

IT DOESN'T SEEM LIKE IT IN THE HOURS ARE SPINNING IN THE MEETING AND THAT'S PROBABLY THE MOST SURPRISING THING IS THAT, I LOOK AT STAFF, THEY'RE NOT MY ADVERSARIES, THE OTHER PLANNING COMMISSIONS OR NOT.

I WOULD TELL YOU THAT THAT'S PROBABLY THE MOST SURPRISING THING FOR ME BECAUSE I SHOWED UP.

QUITE FRANKLY, I JUST WASN'T HAPPY WITH THE WAY THAT I'D BEEN TREATED A FEW TIMES AND I LIVED HERE AND WAS TOLD,

[02:10:02]

HEY, THERE'S AN OPENING AND LO AND BEHOLD, THEY PUT ME IN A SPOT, SO BE CAREFUL WHAT YOU WISH FOR.

>> I OFTEN SAY TO PEOPLE THE BEST I COULD WAIT FOR YOU IS SIX MONTHS ON CITY COUNCIL.

[LAUGHTER] THANK YOU. IT'S A GOOD.

>> CERTAINLY. VERY GOOD. JOHN.

>> I DON'T REALLY HAVE A QUESTION.

I'LL JUST MAKING A COMMENT, BUT AS A FORMER CHAIRMAN OF THE PLANNING COMMISSION, I WILL SAY RUSTY IS AN EXCEPTIONAL JOB AS OUR CURRENT CHAIR AND MUCH BETTER THAN I DID AS THE CHAIR.

>>OH, COME ON. THAT IS WHAT WE'RE SHOOTING FOR AND ALL OF THESE BOARDS THAT WE JUST KEEP ELEVATING THE PEOPLE THAT WE PUT ON THERE AND WE GET BETTER AND BETTER AT WHAT WE DO AND SO I CAN'T THANK YOU ENOUGH FOR PUTTING IN YOUR APPLICATION, BEING A VALUABLE MEMBER OF THE PLANNING COMMISSION AND DEFINITELY WANT TO SEE YOU CONTINUE THAT.

>> WELL, THANK YOU, JOHN.

I'LL JUST SAY I'M LOOKING AT ONE, TWO, THREE, PRIOR CHAIRS AND THANK YOU GUYS BECAUSE I DON'T WANT YOUR JOB IS A JOB.

YOU GUYS PUT A LOT OF TIME AND EFFORT AND WHAT YOU DO.

BUT I CAN PROMISE YOU, I'M HAPPY TO SERVE WHERE I'M AT.

I LOOK AT AS A VOLUNTEER POSITION THAT I'M CONTRIBUTING TO THE COMMUNITY.

BUT I COULDN'T DO AN ELECTION.

I CERTAINLY COULDN'T SIT IN THE SPOTS YOU GUYS ARE SITTING AT AND SO MY HATS OFF TO YOU.

>> THANK YOU. MARIE.

>> I JUST WANT TO MAKE A COMMENT TO I THINK YOU DO A GREAT JOB PLANNING.

I THINK YOU'RE SERVING AS A GREAT CHAIR.

WE AGREE ON ABOUT 95% IN THE STAFF.

[LAUGHTER] BUT MY QUESTION, YOU'RE ONLY 61? NO IT'S A JOKE.

>> I'M ONLY 61.

>> I'M KIDDING.

>> YOU KNOW, WHAT'S GREAT IS, IS MARIE IS SOMEBODY THAT I HATE TO LOVE.

THAT'S A PERFECT EXAMPLE OF WHAT I HAVE REALLY LEARNED IS THAT THERE ARE SO MANY THINGS THAT WE AGREE ON, BUT THEN THERE ARE THINGS THAT WE DON'T AND YOU JUST GOT TO WORK THROUGH THOSE AND YOU CAN'T TAKE THEM TO HEART.

IF YOU GUYS FIRED ME TODAY.

I'D WALK AWAY A WINNER BECAUSE I LEARNED THAT ABOUT MYSELF.

I'M JUST ANYWAYS. THANK YOU, MARIE.

>> BUT I THINK YOU DO A FABULOUS JOB.

>> THANK YOU. I APPRECIATE THAT.

>> I THANK YOU FOR YOUR SERVICE.

I'M SORRY, YOU HATE TO LOVE ME.

I JUST WANT YOU TO LOVE ME MEN.

>> PUT IT THAT WAY, BUT I CAN UNDERSTAND WHAT HE'S TALKING ABOUT.

>> IT MAKES SENSE. ANY OTHER QUESTIONS, COUNCIL MEMBERS? OH, DAVID, THANK YOU.

>> COME ON. YOU'VE GOT TO LET ME DO IT, TOO.

I WANT TO THANK YOU AGAIN FOR STEPPING UP AND TAKING OVER THE CHAIRMANSHIP OF THE PLANNING COMMISSION.

>> CERTAINLY.

>> I'VE WATCHED THEM AND THEY ARE IN REALLY GOOD HANDS AND LIKE YOU SAID, IT IS THE DIVERSITY OF THAT ORGANIZATION AND THE COMMITMENT OF THOSE VOLUNTEERS THAT MAKE IT SUCCESSFUL AND YOU ALL DO A GREAT JOB OF DISCERNING AND ASKING TOUGH QUESTIONS AND I THINK THAT'S WHAT NEEDS TO HAPPEN AT THAT LEVEL, SO, THANK YOU.

>> SURE. VERY GOOD.

ANY OTHER QUESTIONS COUNCIL MEMBERS. RUSTY, THANK YOU.

I I'VE KNOWN RUSTY PERSONALLY FOR A LONG TIME AND I THINK YOU EPITOMIZE RUSTY WHAT WE LOOK FOR IN A VOLUNTEER FOR THESE COMMITTEES.

YOU'VE DONE AN EXCEPTIONAL JOB. THANK YOU VERY MUCH.

>>YOU'RE WELCOME. THANKS SO MUCH.

WE'LL MAKE OUR DECISION SEPTEMBER 21ST.

>> THANK YOU, GUYS.

>> THANK YOU. MICHAEL NIEBUR WILL BE COMING IN.

[NOISE] MICHAEL, HOW ARE YOU, SIR?

>> GOOD MORNING.

>> GOOD MORNING. THANK YOU FOR YOUR PATIENCE THIS MORNING.

IT'S BEEN A LONG MORNING. I KNOW FOR ALL OF US.

>> ONE LEFT, SIR.

>> WE DO GOT ONE MORE TO GO.

MICHAEL WE'LL GIVE YOU ABOUT A MINUTE OR SO FOR AN INTRODUCTORY COMMENT AND THEN WE'LL OPEN A QUESTION, SIR.

>> WELL, UNFORTUNATELY I'VE BEEN ABLE TO MEET ALL OF YOU.

BUT FOR THOSE WHO DON'T KNOW MUCH ABOUT ME, I WAS BORN AND RAISED HERE, LEFT AFTER HIGH SCHOOL, LIKE MOST DO, SWEARING NEVER TO COME BACK.

THEN A COUPLE OF MONTHS BEFORE I MOVE BACK, ALWAYS A GOOD TIME TO COME BACK.

SINCE THEN HAVE RE-INVIGORATE MYSELF FOR THE LOVE FOR THE ISLAND.

I'VE COMMITTED MYSELF TO MAKING WHERE I LIVE AND WHERE OTHERS LIVE, BETTER PLACE.

NEVER ONCE CLAIMED TO HAVE BETTER QUALIFICATIONS IN ANYTHING I DO.

BUT I'M PROUD TO SAY I ALWAYS HAVE DIFFERENT QUALIFICATIONS AND I THINK THAT'S IMPORTANT ON JUST ABOUT ANYTHING WE DO, SIR.

[02:15:03]

>> VERY GOOD. QUESTIONS FOR MR. NEIGHBOR? MIKE.

>> GOOD MORNING AND THANK YOU FOR PLAYING.

HOW DOES YOUR SKILL SET PLAN TO HELP THE PLANNING COMMISSION?

>> I THINK LIKE I MENTIONED, I FEEL I BRING DIFFERENT QUALIFICATIONS.

I DON'T KNOW THE BACKGROUND OF EVERYBODY ON PLANNING AND CERTAINLY THE APPLICANTS THAT I WAS IN THE ROOM WITH.

I NEVER GOING TO PRETEND TO HAVE A DEVELOPER'S MINDSET, BUT MY TIME WORKING FOR TEXT DOT GAVE ME THE ABILITY TO REALLY PUSH THE UNDERSTANDING OF PERMITTING PROCESSES OF THAT AT THE TIME ENGINEERS WOULD BRING TO US.

TAKING IT FROM THAT SECONDARY STEP.

LOOKING THROUGH AND MAKING SURE THAT THINGS ARE BEING PROPOSED ARE DONE IN A WAY THAT WON'T, I GUESS WE COULD SAY DON'T WANT TO OFFEND THE REGULATING BODIES THAT WE ALL HAVE TO ASSOCIATE WITH.

BEING ABLE TO WORK THROUGH THOSE PROCESSES AND GIVE FEEDBACK AND HELP.

CURRENTLY, MY ROLE WITH TEXTS IN MACRO LIFE, RUNNING OUR GREEN INFRASTRUCTURE PROGRAM GIVES ME THE ABILITY TO LOOK AT THINGS DIFFERENTLY IN MORE OF A TRANSITION WAY OF DOING THINGS THAT ISN'T NECESSARILY THE WAY THEY'VE ALWAYS BEEN DONE, BUT UNDERSTANDING THAT DIFFERENT ISN'T BAD AND SO I'M UNDERSTANDING THAT WE CAN DO THINGS DIFFERENTLY AND STILL HAVE THE SAME OUTCOME IS I THINK, IMPORTANT.

>> VERY GOOD. ANY OTHER QUESTIONS FOR MR. NEIGHBOR?

>> MICHAEL, I'LL ASK A QUESTION.

WHAT DO YOU THINK JUST LOOKING AT THE PLANNING COMMISSION AT THIS POINT, WHAT ONE MAIN AREA, IF YOU ARE APPOINTED, WHAT CHANGE WOULD YOU LIKE TO SEE AT THE PLANNING COMMISSION?

>> I DON'T KNOW IF IT'S NECESSARILY A CHANGE OR IF IT'S JUST A CONTINUATION OF THE WORK THAT THEY'VE BEEN DOING.

ONE THING I LIKE TO LOOK AT IS MAYBE BEING THAT, I GUESS YOU COULD SAY SOMETIMES BEING THAT DEVIL'S ADVOCATE OF, IS THERE ANOTHER WAY OF DOING THINGS? I THINK WE CAN ALWAYS LOOK AT THINGS DIFFERENTLY.

IF THINGS AREN'T DONE APPROPRIATELY, IS IT NECESSARILY WELL LET'S MAKE A CHANGE.

LET'S DO AN ORDINANCE CHANGE YOUR VARIANTS OR THINGS LIKE THAT.

IS THAT REALLY NECESSARY OR CAN WE JUST LOOK AT THE PROJECT ITSELF A LITTLE DIFFERENTLY? I THINK WE'VE GOT A LOT OF OPPORTUNITY IN GALVESTON, BUT WE HAVE TO REMEMBER THAT WE'RE AN ISLAND, AT SOME POINT WE WILL JUST RUN OUT OF SPACE TO DO WORK, AND SO WE NEED TO LOOK AT IT FROM HOW CAN WE REWORK THINGS RATHER THAN JUST LOOKING AT NEW.

I THINK BRINGING THAT MINDSET TO THE PLANNING COMMISSION IS MORE OF A CONTINUE HOW I THINK THEY'VE BEEN DOING RECENTLY AND NOT NECESSARILY LOOKING FOR A WHOLE NEW CHANGE.

>> VERY GOOD. THANK YOU, MICHAEL VERY MUCH.

WE'LL MAKE OUR APPOINTMENTS ON SEPTEMBER 21ST.

GREATLY APPRECIATE YOUR TIME.

>> THANKS.

>> THANK YOU. ANTHONY RIOS WILL BE OUR LAST INTERVIEW. FROM HERE, COUNCIL.

I'M GOING TO RECOMMEND THAT WE MOVE TO EXECUTIVE SESSION AND WE WILL ALSO BE ABLE TO GO GET OUR FOOD AND EAT DURING THE EXECUTIVE SESSION THEN.

>> SEEN THAT DONE IN OTHER SESSIONS [LAUGHTER].

THAT'S WHERE YOU LEARN THAT, THAT'S THE WARS BOARD.

>> OH, NO. WE'VE DONE THAT MANY TIMES.

WE'VE DONE THAT MANY TIMES HERE.

MR. RIOS, HOW ARE YOU, SIR?

>> THANK YOU. GOOD MORNING.

>> GOOD MORNING. GOOD, I KNOW, AND I WANT TO THANK YOU FOR YOUR PATIENTS.

WE TOOK THE APPLICANTS IN ORDER OF WHEN THEY FILED THEIR APPLICATION SO YOURS CAME IN LAST, SO IT COULD BE THE LAST IS BEST.

ANYWAY, GIVE YOU ABOUT A MINUTE FOR INTRODUCTORY COMMENTS AND THEN WE'LL OPEN UP A QUESTION, SIR.

>> SURE. MY NAME IS ANTHONY RIOS.

I WAS BORN HERE IN GALVESTON, GRADUATED HIGH SCHOOL IN 1980 AND I HAD A STENT IN PUBLIC HEALTH IN THE '80S AND '90S AND THEN I HAD TO COMPLETE 180, CAME BACK TO DALLAS IN THE LATE 90S AND TOOK OVER MY FAMILY'S BUSINESS, JOEL GALLERY TILE, WHICH WAS LOCATED ON HARBOR SIDE NOW IS A PARKING LOT FOR ROYAL CARIBBEAN CRUISE LINES.

ANYWAY, I'VE BEEN BACK IN GALVESTON SINCE THE LATE '90S AND TOOK OVER MY FAMILY'S BUSINESS AND THEN WE CLOSE THAT DOWN IN 2016 SO I COULD PURSUE OTHER INTERESTS AND TRAVEL WHILE I'M YOUNG ENOUGH AND HEALTHY ENOUGH TO DO ALL THAT STUFF.

HERE RECENTLY I'VE BEEN PRETTY ACTIVE IN CIVIC ORGANIZATIONS HERE IN GALVESTON AND I LOVE MY ISLAND.

[02:20:01]

I'M JUST HERE TO CONTRIBUTE AND SEE I CAN BE OF SERVICE AT THIS STAGE OF LIFE.

>> VERY GOOD. THANK YOU, SIR.

DAVID COLLINS AND THEN DAVID FRANKLIN.

>> YEAH, ANTHONY.

>> VERY WELL, DAVID. THANKS. GOOD TO SEE YOU.

>> I'VE KNOWN ANTHONY QUITE AWHILE.

HE USED TO BE MY CONSTITUENT THEN I WAS REELECTED AND HE MOVED.

NICE. MALLORY'S, DAVID'S CONSTITUENT AND I'LL PROBABLY SAY THIS WRONG, BUT MR. RIOS IS THE TEXAS LULAC CITIZENS OF THE YEAR, THIS YEAR.

>> A COUPLE OF LITTLE AWARDS ALONG THE WAY.

SURPRISE ME, BUT YEAH [LAUGHTER].

>> AS I SAY, I'VE KNOWN HIM PRETTY WELL FOR A WHILE.

WHAT DO YOU BRING TO THE PLANNING COMMISSION? WHAT WOULD YOU DO DIFFERENTLY? WHAT'S YOUR POINT HERE?

>> WELL, I THINK FROM WHAT I'VE SEEN OBSERVING THE PLANNING COMMISSION IS IT'S REALLY ADVISORY.

I THINK ALL OF THESE COMMISSIONS ARE ADVISORY COMMISSIONS, AND I THINK WORKING WITH THE STAFF AND GETTING THEIR PROFESSIONAL INPUT.

I THINK IT'S MORE OF A MATTER OF JUST BEING PART OF THAT PROCESS OF GUIDING THESE PROJECTS THAT INVESTORS AND DEVELOPERS BRING TO GALVESTON BECAUSE THERE'S SOME INTERESTING PROJECTS THAT PEOPLE ARE BRINGING YOU.

IT TAKES A LOT OF MONEY, TAKES A LOT OF TIME TO GET THEM OFF THE GROUND, BUT I THINK JUST BEING A GOOD LISTENER AND PAYING ATTENTION TO DETAIL ARE SOME OF THE THINGS THAT I CAN BRING TO THE PLANNING COMMISSION, AND THEN JUST THE INPUT FROM MY YEARS OF WORKING AS A CONTRACTOR, I'VE SEEN EVERY MANNER OF CONSTRUCTION ON THIS ISLAND FROM THE MOST MODEST HOME TO THE PALISADE POMS OUT TO THE WEST END BEFORE IKE AND THEN AFTER IKE AND ALL THE CHANGES THAT WERE MADE, LOTS OF PROJECTS WE WORKED OUT AT UTNB AND FOR GALVESTON COUNTY.

I'VE SEEN EVERY MANNER OF CONSTRUCTION ON THIS ISLAND.

I THINK THAT'S A STRENGTH THAT I BRING UP, JUST BEING ABLE TO LOOK AT THAT AND HAVE AN IDEA OF WHAT IT IS AND WHAT'S WORKING, WHAT'S NOT WORKING.

BUT I THINK ONE OF THE THINGS THAT I LIKE ABOUT WHAT THE PLANNING COMMISSION DOES IS THAT YOU'RE DEALING WITH A LOT OF DIFFERENT PEOPLE FROM ARCHITECTS AND ENGINEERS AND BUILDERS SO THERE'S A LOT OF DIFFERENT EYES THAT ARE LOOKING AT ALL THESE DIFFERENT PIECES OF THE PROJECTS THAT ARE BEING PROPOSED FOR GALVESTON.

>> VERY GOOD, DAVID FRANKLIN, AND THEN MARIE.

>> YES. COUNCIL MEMBER COLLINS TOOK MY QUESTION, SO I WOULD LIKE TO FOLLOW UP ON THAT.

GIVEN YOUR BACKGROUND, WHAT WOULD YOU SAY IS YOUR BIGGEST EXPERTISE OR BIGGEST BENEFIT THAT YOU COULD BRING TO PLANNING COMMISSION?

>> I THINK AROUND THE CONSTRUCTION PIECE FOR SURE, I STILL REMEMBER WHAT I'M LOOKING AT IF I'M LOOKING AT A BLUEPRINT.

IT'S BEEN A COUPLE OF YEARS.

BUT IF I'M LOOKING AT PLANS AND PRINTS AND THINGS LIKE THAT, I DO NOT KNOW WHAT I'M LOOKING AT.

I'D PROBABLY NEED TO DO A REFRESHER ON SOME OF THE OTHER IMPORTANT PIECES AROUND THINGS THAT IMPACT THE WEST END, AROUND THE DUNES AND ALL THAT KIND OF STUFF.

BUT I THINK JUST BEING ABLE TO BE PRETTY FAMILIAR WITH WHAT THEY'RE TALKING ABOUT AND WHAT THEY'RE PROPOSING AND HOW IT IMPACTS GALVESTON, I THINK IT'S IMPORTANT TO BE AWARE OF HOW THESE DIFFERENT PROPOSALS ARE GOING TO IMPACT THEIR NEIGHBORS, THE COMMUNITY.

I LIKE SOME OF THE THINGS THAT ARE BEING PROPOSED FOR THE EAST END, EAST TO 14TH STREET AND THE SEAWALL.

THAT NEEDS A LOT OF ATTENTION AND I THINK THAT PEOPLE ARE STARTING TO PAY ATTENTION TO THAT NOW FOR RETAIL AND FOR HOUSING.

THE WHOLE HOUSING PIECE HAS BEEN A PERENNIAL CONVERSATION IN GALVESTON FOREVER AND EVER AND IT'S SOMETHING THAT PEOPLE SEEM TO BE INTERESTED IN, WHETHER THAT REALLY GETS OFF THE GROUND AND THE MONEY TO DO THAT, AND I KNOW PEOPLE WHO COME TO INVEST HERE WANT TO MAKE MONEY, SO THAT'S A BIG PIECE OF IT.

BUT I THINK FOR THE PLANNING COMMISSION, IT'S REALLY AN ADVISORY PIECE.

YOU'RE NOT MAKING ANY RULES OR REGULATIONS.

YOU'RE FOLLOWING THE GUIDANCE FROM THE PROFESSIONAL STAFF, SO IT'S IMPORTANT JUST TO BE AWARE OF THAT.

YOU CAN SAY YOUR TWO CENTS AND IT MAY BE ACCEPTED, IT MAY NOT BE ACCEPTED.

>> I'D LIKE TO FOLLOW UP WITH THAT. I WOULD TOTALLY AGREE.

YOU CAN LEARN BEACHFRONT CONSTRUCTION, SO I HAD TO.

[LAUGHTER] WHEN I CAME ON PLANNING COMMISSION, I DIDN'T KNOW ABOUT THAT AS WELL, BUT YOU'LL LEARN THAT.

I WILL SAY THAT ONE OF THE ADVISORY THINGS THAT YOU CAN DO ON PLANNING COMMISSION IS NOT JUST IN THE REVIEW OF THE PROJECTS, BUT ALSO IN REVIEW OF THE LAND DEVELOPMENT REGULATIONS THEMSELVES.

YOU ARE IN ADVISING BODY TO THE CITY COUNCIL RELATED TO ANY PROPOSED ORDINANCE CHANGES THAT YOU MIGHT HAVE TO SUGGEST.

I WOULD ENCOURAGE YOU TO LOOK AT THAT AS A LARGER RESPONSIBILITY THAT YOU HAVE AN OBLIGATION, NOT OBLIGATION, BUT RESPONSIBILITY AND OPPORTUNITY SERVING ON PLANNING COMMISSION. THANK YOU.

>> THANKS.

>> MARIE.

>> BOTH DAVID AND DAVID ASKED MY QUESTIONS.

[LAUGHTER] WHAT WAS YOUR EXPERIENCE AS A CONTRACTOR WITH THE PROCESS AT THE CITY? COULD YOU SEE ANY IMPROVEMENTS IN THAT?

>> WE DIDN'T DO A LOT OF PROJECTS DIRECTLY WITH THE CITY OF GALVESTON.

WITH GOVERNMENT PROJECTS, MOSTLY GALVESTON COUNTY, WHICH THEY WERE VERY EASY TO WORK WITH.

UTMB IS A MONSTER TO WORK WITH IN MY RECOLLECTION.

ONE OF MY LAST BIG PROJECTS THERE WAS AFTER IKE.

[02:25:03]

THERE'S JUST SO MANY PIECES INVOLVED, SO MANY CONTRACTORS INVOLVED IN THAT AND IT WAS A LOT OF WORK.

THAT BIG MAIN CORRIDOR THAT CONNECTS OLD JOHN SEELY TO JEANNIE SEELY AND ALL THROUGH THERE IS ONE OF THE LAST BIG PROJECTS I WORKED ON WITH UTMB.

BUT THERE'S JUST SO MANY PARTS OF THE PUZZLE, SO IT'S A MATTER OF FINDING OUT AND KNOWING WHERE YOUR PART IS.

WHEN I WAS DOING CONTRACTING, KNOWING WHAT MY PART WAS AND THEN HOW TO DO THE BEST JOB WE COULD DO AND BEING EFFICIENT, GETTING EVERYTHING DONE.

THERE'S A LOT OF RULES AND REGULATIONS WORKING WITH THE STATE AND WITH THE COUNTY.

>> THANK YOU, AND THANK YOU FOR REPLYING.

>> MR. RIOS, GOOD TO SEE YOU.

>> JOHN.

>> MY QUESTION. THE DAVIDS ASKED SOME GREAT QUESTIONS DOWN THERE, SO THAT ANSWERED SOME OF MY QUESTIONS.

I GUESS MY QUESTION FOR YOU WOULD BE, HOW DO YOU SEE THE DEVELOPMENT OF GALVESTON ISLAND NOW AND IN THE FUTURE? CAN YOU JUST TALK A LITTLE BIT ABOUT YOUR OVERALL VIEW OR PHILOSOPHY ON DEVELOPMENT HERE ON THE ISLAND?

>> WELL, I KNOW WHAT I SEE, I LIVE ON 25TH STREET, SO WE'RE THERE WITH BIKER RALLY, WE'RE THERE WITH MARDI GRAS, ALL THAT FUN STUFF, SO I KNOW THAT TOURISM IS GOING TO BE THE DRIVING FORCE HERE FOR YEARS TO COME.

BUT WE ALSO HAVE TO PAY ATTENTION TO WHAT THE NEEDS ARE OF UTMB, WHAT THE NEEDS ARE OF THE PORT, AND AGAIN, AS I MENTIONED A WHILE AGO, WE'RE ALWAYS TALKING ABOUT MIDDLE-INCOME HOUSING AND THAT'S JUST AN ANIMAL THAT WE JUST CAN'T SEEM TO GET OUR HANDS AROUND AND REALLY SEE HOW ARE WE GOING TO MAKE THAT WORK IN GALVESTON THE WAY THAT WORKS FOR A LOT OF PEOPLE.

I THINK THAT'S A BIG PIECE, IS HOW WE'RE GOING TO KEEP PEOPLE HERE, BRING PEOPLE HERE, HOW THE PROJECTS THAT PEOPLE ARE PROPOSING, IF THEY EVER GET DONE BECAUSE THERE'S A LOT OF PROJECTS THAT COME TO THE TABLE THAT NEVER GET DONE.

I KNOW THERE WAS SUPPOSED TO BE A THIRD TOWER AT PALISADES.

IT HASN'T HAPPENED YET.

BEACH TOWN HAD ITS ISSUES.

I JUST THINK IT'S A MATTER OF HOW IT ALL FITS INTO THE BIGGER PLAN.

THERE'S A 2011 PLAN, THERE'S VISION GALVESTON.

EVERYONE'S GOT THEIR DIFFERENT IDEAS OF HOW THEY WANT TO GO ABOUT IT AND I THINK SUSTAINABILITY IS GOING TO BE A BIG PIECE FOR THIS ISLAND.

THERE IS A LOT I THINK WE COULD DO TO MAKE THE CITY OF GALVESTON GREENER IN THE PROJECTS THAT WE DO AND SOME OF THE BUILDING PROJECTS THAT ARE HAPPENING ON THE WEST END.

THEN THE WHOLE OTHER PIECE OF THE HISTORIC PART IS.

THERE'S ALL THESE DIFFERENT PARTS OF THIS PUZZLE THAT GO TOGETHER THAT THEY ALL NEED ATTENTION, THEY ALL NEED EXPERTISE, AND THEY ALL NEED CALM [LAUGHTER] TO GET THEM TO WORK.

>> THANK YOU. VERY GOOD.

ANY OTHER QUESTIONS? I WANT TO THANK YOU, MR. RIOS.

LISTENING TO YOUR ANSWERS HERE, I THOUGHT TO MYSELF, MY GOSH, YOU WOULD BE A GOOD CANDIDATE FOR ANY OF OUR COMMITTEES OR BOARDS HERE.

I REALLY APPRECIATE YOUR APPLICATION.

WE'LL BE MAKING OUR APPOINTMENTS ON SEPTEMBER 21ST, SIR.

LOOKING FORWARD TO SEEING YOU IN THE FUTURE HERE WITH THE CITY.

>> THANK YOU FOR YOUR TIME.

>> COUNCIL, I'M GOING TO RECOMMEND THAT WE ARE GOING TO MOVE TO EXECUTIVE SESSION HERE.

[7. EXECUTIVE SESSION (Room 204)]

IT IS 11:33, PURSUANT TO TEXAS GOVERNMENT CODE 551.071, CONSULTATION WITH ATTORNEY AND EXECUTIVE SESSION WE CONDUCTED TO DISCUSS AND RECEIVE LEGAL ADVICE CONCERNING PENDING LITIGATION AND/OR A SETTLEMENT OFFER OR ON A MATTER IN WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENTAL BODY UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THIS CHAPTER RELATED TO THE FOLLOWING, 7.8.1, LONGHORN INTERNATIONAL TRUCKS LTD.

IT IS 11:34.

WE'RE GOING TO RETIRE TO EXECUTIVE SESSION IN ROOM 204 AND THEN AS WE COME OUT OF EXECUTIVE SESSION, WE'LL START OUR WORKSHOP ITEMS IN ROOM 204.

THANK YOU VERY MUCH.

COUNCIL, IT IS 12:26 PM.

WE ARE NOW INTO SESSION BACK INTO OUR WORKSHOP AGENDA.

WE ARE GOING TO BE SHORTLY MOVING INTO ITEM 8B, AS IN BOY.

[NOISE] [LAUGHTER] THAT WAS MY PAPER.

[02:30:02]

>> I WAS LIKE, WOW, WHAT IS THAT?

>> IT'S MY PAPERS HITTING AGAINST IT.

>> JANELLE IS BRINGING HER AUDIO EQUIPMENT IN.

>> IT'S NOT KARAOKE? [LAUGHTER]

>> ONLY GOD KNOWS. NOBODY WOULD BE WATCHING THAT.

>> THAT WOULD BE KIND OF FUN NOW.

>> YOU GOT TO SING EVERYTHING THAT YOU TALK ABOUT TODAY.

>> OH, MY GOD. JOHN, YOU CAN LEAD US OFF. [LAUGHTER]

>> YOU START.

>> JANELLE COULD YOU READ ITEM 8B PLEASE MUM?

[8.B. Discuss The Draft 2023 Pavement Evaluation Report And The Proposed Mill And Overlay Street Paving Plan (B. Cook - 20 Min)]

>> YOU HAVE THIS THING. [LAUGHTER]

>> IT'S LIKE HIGH NAMES.

>> 8B, DISCUSS THE DRAFT 2023 PAVEMENT EVALUATION REPORT AND THEIR PROPOSED BILL AND OVERLAY STREETS PAVING PLAN.

>> BRANDON, GLAD TO HAVE YOU HERE.

>> CONSULT IT.

>> WE HAVE A POWERPOINT, I WANT TO PULL THAT UP.

>> THIS IS ALL A BIG PRESENTATION.

WENT THROUGH IT A FEW TIMES.

>> WE'LL WALK THROUGH THE GI.

>> IS VERY THOROUGH.

>> WHAT DID YOU LEARN?

>> DOESN'T LOOK LIKE MY AREA GETS MUCH.

THEY'RE LIKE TWO INTERSECTIONS.

>> WHY IS THIS CITY EXTERNAL THING NOT WORKING?

>> WHAT'S NOT WORKING?

>> I CAN'T GET CONNECTED TO THE INTERNET.

HEY, JANELLE, IS OUR INTERNET WORKING HERE?

>> MINE SEEMS TO BE WORKING.

>> SERVERS THEN INTERNAL, RIGHT?

>> TELL ME IT'S SATURATED.

IT'S NOT SECURE AND I HAVE TO GO AROUND THAT.

>> [OVERLAPPING]

>> WE ARE GETTING HACKED

>> IT'S NOT A SECURE WEB, VERY INSECURE.

>> BRANDON, GLAD TO HAVE YOU WITH US THIS AFTERNOON.

>> GOOD TO BE HERE. THANK YOU.

[BACKGROUND]

>> I JUST WANT TO PROVIDE A LITTLE BACKGROUND ON THIS OLD PAVEMENT ANALYSIS SITUATION.

FOR DECADES GALVESTON DIDN'T INVEST VERY MUCH MONEY IN ANY OF ITS STREETS AND ASPHALT AND EVERYTHING.

REALLY DIDN'T START DOING IT UNTIL PROBABLY AFTER HURRICANE IKE WHEN THE FEDERAL MONEY STARTED COMING IN.

THAT'S WHEN WE STARTED REALLY SEEING SOME BIG RECONSTRUCTION PROJECTS AND WHAT HAVE YOU GOING ON.

IN 2016, WE HIRED A FIRM, DATA TRANSFER SOLUTIONS TO CONDUCT THEIR INITIAL STREETS CONDITION ASSESSMENT ON THERE.

THEN IN 2017 IS WHEN THE VOTERS APPROVED ABOUT 65 MILLION OF GO BONDS, WHICH WAS MOSTLY FOR STREET REHABILITATION PROJECTS.

THERE WERE A COUPLE OF DRAINAGE PROJECTS IN THERE AS WELL.

BUT PRIMARILY IT WAS ALL STREET REHAB PROJECTS.

THEN WE ALSO REHIRED THEM IN 2018 TO DO ANOTHER UPDATE TO THAT PREVIOUS CONDITION ASSESSMENT.

AT THE TIME WE HAD POLICIES THAT REALLY THERE HAD BEEN SUCH NEGLECT, I GUESS THROUGHOUT THE YEARS OF NO ASPHALT BEING LAID OR WHAT HAVE YOU THAT WE HAD A NEED ALL THROUGHOUT THE ISLAND TO LAY ASPHALT.

THE POLICY OF THAT TIME WAS TO SPREAD IT OUT AMONGST THE COUNCIL DISTRICTS AND SO THAT WE CAN SPREAD IT OUT, HIT THE WORST FIRST IN EACH DISTRICT, AND SPREAD THE LOVE, IF YOU WILL, WITH THAT $65 MILLION PACKAGE.

>> MY SHARE OF A 20-MILE DISTRICT. BUT GO AHEAD.

>> WHICH DISTRICT WOULD THAT BE?

>> WHICH ONE IS IT?

>> IT SAYS [OVERLAPPING] [LAUGHTER].

>> THE FIRST TIME HEARING ABOUT THAT.

>> JUST IN CASE.

>> WE RECEIVE FEEDBACK FROM COUNCIL AND WE ENTERTAINED A NEW STREETS ASSESSMENT WITH A NEW FIRM AND THE FEEDBACK AND THE POLICY DECISION WE GOT FROM COUNCIL WAS TO NOT JUST FOCUS ON THE DISTRICTS AND LET'S LOOK AT THE OVERALL SYSTEM AND SEE HOW WE CAN GET THE BEST BANG FOR OUR BUCK WITH THE INVESTMENT OF THIS.

[02:35:04]

THE COMMITTEE SELECTED ROADWAY ASSET SERVICE TO PERFORM THIS JUST BASED ON NUMBER ONE, THEIR PROFESSIONAL EXPERIENCE IN THE PAST.

NUMBER 2, THAT THEY HAVE STATE-OF-THE-ART TECHNOLOGY THAT THEY'RE BRINGING TO THE TABLE AS FAR AS USING LASERS AND ARTIFICIAL INTELLIGENCE, MACHINE LEARNING AND WHAT HAVE YOU TO BE ABLE TO PERFORM THESE ASSESSMENTS AND TO REALLY MAKE THEM MORE OBJECTIVE AND NOT SUBJECTIVE AS THE CASE MAY HAVE BEEN SOMETHING.

ANYWAY, I'M I WANT TO INTRODUCE ZACH THOMAS.

HE IS THE LEAD PROJECT MANAGER.

>> WE WONDERED WHO YOU ARE.

>> EVERY TIME BRANDON SAYS HIS NAME, I THINK BACK TO ONE OF MY BUDDIES FROM HIGH SCHOOL WHOSE NAME WAS ZACH THOMAS.

>> I LEARNED A LOT THIS MORNING. I DID.

>> BUT YEAH, HERE'S THE IF YOU WANT TO.

>> WHERE WOULD YOU LIKE ME? IS IT OKAY IF I JUST STAND HERE?

>> CLICK TO THE RIGHT.

>> JUST RIGHT THERE.

>> WHERE ARE YOU? IF YOU WANT TO COME AND SIT, YOU CAN SIT HERE.

>> [OVERLAPPING]

>> WHATEVER IS BEST FOR YOU FOLKS.

>> COME ON, ZACH.

COME ON OVER AND SEE.

>> PERFECT. EXCELLENT

>> THE MAYOR RARELY BUY IT. [LAUGHTER]

>> LET'S GO AHEAD AND JUMP INTO IT.

MR. MAYOR, COUNCIL, THANK YOU GUYS FOR HAVING ME ON YOUR BEAUTIFUL ISLAND.

LOVE THIS PLACE, VERY SPECIAL PLACE.

WE GET TO TALK ABOUT ONE OF MY FAVORITE TOPICS TODAY, WHICH IS PAVEMENT MANAGEMENT.

MY KIDS TELL ME ALL THE TIME THAT MAKES ME THE WORLD'S BIGGEST NERD.

I ASSURE THEM I AM NOT THE WORLD'S BIGGEST NERD BUT THEY DON'T BELIEVE ME EITHER WAY.

WHAT WE'RE GOING TO TALK ABOUT SPECIFICALLY IS THE STATE OF THE ROADWAY NETWORK HERE IN THE CITY OF GALVESTON.

WHAT DID WE COLLECT? WHAT DOES IT MEAN? A COUPLE OF QUICK TOPICS AND TERMINOLOGY THAT I'D LIKE TO REVIEW.

THE FIRST IS CENTERLINE MILES.

IMAGINE YOURSELF WALKING DOWN THE MIDDLE OF A ROAD, REGARDLESS OF WHAT, WALKING RIGHT DOWN THE MIDDLE AND WALKING ONE MILE, THAT IS ONE CENTERLINE MILE OF ROAD.

NOW IF WE TAKE INTO ACCOUNT AREA AND WE TAKE INTO ACCOUNT THE WIDTH OF THE ROADS YOU FOLKS OWN AND MAINTAIN APPROXIMATELY 5.6 MILLION SQUARE YARDS OF PAVEMENT.

THAT IS A HUGE ASSET ON THE BOOKS THAT YOU FOLKS MAINTAIN, BIG ENOUGH TO PAVE A SMALL TWO-LANE ROAD ALL THE WAY TO OKLAHOMA CITY IF YOU SO DESIRED.

THAT'S HOW MUCH ASPHALT AND CONCRETE IS OUT THERE.

NOW IF WE PUT THAT ON THE BALANCE SHEET ON THE BOOKS, WHAT'S THE VALUE OF THAT? THE VALUE THAT IS $0.5 BILLION.

I'M ONLY TALKING ABOUT PAVEMENTS.

I'M TALKING ABOUT THE SURFACE OF THE ROAD AND THE GRANULAR BASE OF THE ROAD.

I'M NOT TALKING DRAINAGE OR BRIDGES OR ANY OF THAT OTHER STUFF.

CURB AND GUTTER. JUST TALKING ABOUT THE PAVEMENT ITSELF.

PCI, THIS IS SOMETHING YOU'RE GOING TO HEAR A LOT OF.

IF YOU'RE NOT FAMILIAR WITH PCI IT'S AT PAVEMENT CONDITION INDEX THAT RANKS THE HEALTH OF A ROAD ON A 0-100 SCALE.

ZERO IS ABSOLUTELY HORRIBLE TURNING BACK TO GRAVEL, 100 IS A PERFECTLY BRAND NEW ROAD THAT WAS PAVED YESTERDAY. PRESERVATION.

>> YES SIR. GO FOR IT.

>> IT'LL BE QUICK. PCI, WHO DETERMINES PCI? AND HOW DO THEY DETERMINE.

>> GREAT QUESTION. SO THE STANDARD THAT WE ADHERE TO IS ASTM D 6433, THAT SETS THE RULES AND FOUNDATIONS FOR HOW WE COLLECT THE CONDITION DATA AND HOW WE CALCULATE A PCI SCORES.

IT WAS ORIGINALLY DEVELOPED BY THE US ARMY CORPS OF ENGINEERS.

THAT IS THE STANDARD THAT WE ADOPT.

THAT IS THE STANDARD THAT MOST AGENCIES ACROSS THE COUNTRY ADOPT.

NOT ALL, BUT MOST ADOPT THAT ONE.

>> IS THAT DONE THROUGH JUST MANPOWER OR TECHNOLOGY AS WELL?

>> BOTH, TECHNOLOGY AND MANPOWER.

AND I'LL WALK YOU THROUGH BOTH OF THAT TODAY AND I'LL ALSO EXPLAIN HOW YOU FOLKS DID THE SURVEYS IN THE PAST VERSUS HOW WE'RE DOING THEM NOW WITH THE TECHNOLOGY.

>> I HAVE ONE QUESTION.

>> YES MA'AM.

>> AND YOU LITERALLY GO ON EVERY SINGLE ROAD?

>> YES MA'AM. WE DROVE EVERY SINGLE STREET THAT YOU FOLKS OWN AND MAINTAIN.

ABSOLUTELY. SO WE'VE GOT A PCI SCORE FOR EVERY SEGMENT OF ROAD THAT YOU FOLKS MAINTAIN.

THE OTHER THING I WANT TO TOUCH ON REAL QUICK IS PRESERVATION.

YOU'RE GOING TO HEAR ME TALK ABOUT THAT A LOT TODAY.

MAINTENANCE PRESERVATION ACTIVITIES ARE LIGHTWEIGHT COST-EFFECTIVE MAINTENANCE ACTIVITIES THAT YOU CAN DO ON ROADS THAT ARE IN GOOD CONDITION.

AND WE'LL TALK ABOUT WHAT GOOD MEANS HERE SHORTLY, BUT THEY'RE VERY COST-EFFECTIVE.

THEY PRESERVE THE ROAD, THEY SEAL THE ROADS, THEY MAKE THEM IMPERMEABLE.

THEY EXTEND THE DESIGN LIFE OF THE ROADS THEMSELVES.

SO WHAT'S THE PURPOSE OF PAVEMENT MANAGEMENT? IT WAS DOWN TO THE VERY TWO VERY SIMPLE CONCEPTS.

THE PURPOSE OF PAVEMENT MANAGEMENT IS TO MAXIMIZE YOUR LIMITED DOLLARS IN THE MOST EFFICIENT MANNER POSSIBLE.

AND WE DO THAT BY USING SOMETHING CALLED FINANCIAL OPTIMIZATION.

AND I'LL TALK MORE ABOUT THAT HERE IN THE PRESENTATION.

THE SECOND PURPOSE OF PAVEMENT MANAGEMENT IS TO EXTEND PAVEMENT DESIGN LIFE AT THE ABSOLUTE LOWEST COST.

THAT REDUCES YOUR COST OF OWNERSHIP ON THE ROADS OVER THE LONG HAUL.

SO AS YOU CAN SEE THERE, THAT FIRST LINE, THAT BLACK LINE REPRESENTS THE GENERAL AVERAGE DETERIORATION OF A ROADWAY OVER TIME.

IF WE CAN CAPTURE ROADS WHILE THEY'RE STILL IN GOOD CONDITION BEFORE THEY FALL OFF THAT CLIFF,

[02:40:03]

WE CAN SPEND A LOT LESS MONEY MAINTAINING THEM AT $4 PER SQUARE YARD FOR PRESERVATION ACTIVITIES VERSUS $22 PER SQUARE YARD FOR MILLAGE OVERLAYED TYPE ACTIVITIES AS WELL.

SO IF WE CAN HARNESS A COMPLETE AND FULL TOOLBOX AS A PART OF OUR TOOLS, IT REALLY EXPANDS OUR ABILITY TO MAXIMIZE THE CITY'S DOLLARS.

>> CAN I ASK A QUESTION NOW?

SO LIKE IN HIGH FLOOD AREAS, LET'S SAY THAT ARE CAUSED BY TIDAL CURRENTS.

>> BACK TO THAT SLIDE.

DO YOU EVER LOOK AT IT AND SAY, MAN, WE SHOULD CHANGE THIS ROAD TO CONCRETE VERSUS?

>> SO WE DID NOT DO A DRAINAGE ASSESSMENT, BUT YOU BRING UP A VERY IMPORTANT POINT.

IF YOU HAVE ROADS THAT HAVE SUBSTANTIAL DRAINAGE CONCERNS OR DRAINAGE ISSUES, THAT IS GOING TO BECOME A COMPONENT OF YOUR FINAL PAVEMENT MANAGEMENT PLAN AS WELL.

OUR SYSTEM DOESN'T LOOK AT THE DRAINAGE CONCERNS.

THAT WASN'T A PART OF THE SCOPE. BUT YOU'RE RIGHT.

IF THERE'S A BIG ISSUE WITH DRAINAGE, SOMETHING MAY NEED TO HAPPEN IN A DIFFERENT MANNER OR DIFFERENT PRIORITY AS A RESULT.

>> BECAUSE IT MIGHT COST MORE, BUT SAVE YOU MILLIONS IN THE LONG RUN. THANK YOU.

>> THIS IS THE VAN, MY KIDS LIKE TO CALL THIS OUR GHOSTBUSTERS VAN.

WE HAVE FIVE OF THESE THAT DRIVE AROUND THE COUNTRY AND TEXAS COLLECTING DATA ON ROADWAY CONDITIONS.

THREE MAJOR COMPONENTS THAT I WILL TOUCH ON VERY BRIEFLY.

THAT BIG THING ON THE BACKEND, THAT'S THE LASER CRACK MEASUREMENT SYSTEM.

THAT IS A HIGH RESOLUTION CAMERA WITH LASER LIGHT ILLUMINATION.

AND ITS JOB IS THE MEASURED ALL THE PAVEMENT DISTRESSES THAT FALL BENEATH THAT CAMERA, LITERALLY MEASURES THE CRACKS BY WIDTH AND DEPTH AND MODELS THE RUTTING AND THE PROFILE OF THE ROAD AS WELL.

VERY HIGH RESOLUTION AT 1 MILLIMETER RESOLUTION FOR ANYTHING THAT FALLS BENEATH IT.

THE BIG CAMERA ON TOP THAT YOU SEE THERE, THAT BIG BOOM, THAT IS A FIVE LENS PANORAMIC CAMERA.

SO AS WE DROVE THE ROADS, WE CAPTURED HD IMAGERY ON ALL OF YOUR ROADWAYS AS WELL.

THOSE IMAGES WERE USED TO DEVELOP ROADSIDE FEATURE INVENTORIES, LIKE A SIGN INVENTORY AND A PEDESTRIAN CURB RAMP INVENTORY, AND A SIGNAL INVENTORY AND THINGS LIKE THAT.

WE ALSO USE IT FOR QC ON THE BACKEND OF THE DATA, BUT IT'S PRIMARILY USED FOR EXTRACTION PURPOSES.

SO ANYTHING THAT CAN BE SEEN IN THE IMAGERY CAN BE INVENTORIED AT SOME POINT IN THE FUTURE.

THE OTHER THING I SHOULD NOTE TOO IS YOU FOLKS OWN THIS IMAGERY.

WE DON'T HOLD IT HOSTAGE OR ANYTHING LIKE THAT.

IT IS YOURS. THERE'S AN X, Y COORDINATE WITH EVERY IMAGE.

SO AT SOME POINT IN THE FUTURE, IF YOU NEED SOMETHING MORE, THE IMAGERY CAN BE HARNESSED WITHOUT REALLY MOBILIZING THE COSTLY EQUIPMENT.

LASTLY, ON THE FRONT END THERE, THERE'S A COUPLE OF POINT LASERS IN THERE.

THEIR SOLE JOB IS TO MEASURE ROUGHNESS, LONGITUDINAL PROFILE, AND DO IT SUPER ACCURATELY.

WE RUN THAT THING AT THE TTI TEST TRACK ANNUALLY TO ENSURE THAT IT STAYS CERTIFIED.

>> WHAT'S TTI?

>> TTI IS THE TEXAS TRANSPORTATION INSTITUTE.

>> I THINK THAT'S IT. THE RLS CAMPUS NOW, BUT A&M, CORRECT?

>> I BELIEVE IT IS.

>> THAT'S THEIR NEW FACILITY?

>> CORRECT. SO WHAT DO WE DO? [LAUGHTER]

>> I DON'T FOLLOW IT, BUT THEY'RE NOT IN THE BUILDING ACROSS FROM ZACHARY ANYMORE?

>> NO. THEY MOVE FROM THERE OVER BY BUSH LIBRARY FOR AWHILE BUT THEIR TEST TRACK AND EVERYTHING IS THAT THE REALIST CAMP IS GOING TOWARDS CALDWELL.

>> SORRY. WELL, MY BUSINESS PARTNERS IS AN AGGIE AS WELL.

>> ROAD TRIP. WHAT DO WE DO WITH ALL THIS FANCY IMAGERY THAT WE CAPTURED ON THE LEFT-HAND SIDE OF THE SCREEN, YOU CAN SEE THAT THIS DOWNWARD IMAGERY IS USED TO MEASURE THE PAVEMENT DISTRESSES.

TRIP STANDS FOR TECHNICAL RATING INTELLIGENCE PROGRAM.

ITS JOB IS TO BASICALLY MEASURE AND QUANTIFY ALL THE PAYMENT DISTRESSES THAT FALL BENEATH THE CAMERA SENSORS THEMSELVES.

SO IT CREATES A DISTRESS DENSITY FOR EACH DISTRESSED TYPE, ALLIGATOR CRACKING, RUTTING, POTHOLES, YOU NAME IT. IT QUANTIFIES THAT.

AND THEN IT ALSO CALCULATES THAT PCI SCORE THAT WE WERE TALKING ABOUT EARLIER.

SO IT HAS THE ASTM D6433 RULES BUILT WITHIN IT TO CALCULATE A PCI FOR EVERY SEGMENT OF THE ROAD IN THE CITY. MOVING ON.

ONE OF THE OTHER THINGS THAT WE DO, WE DO AN ONSITE FIELD PILOT ON EVERY SINGLE JOB THAT WE DO.

IT'S UNIQUE TO US, BUT THIS IS WHERE WE COME OUT.

WE PICK OR THE CITY PICKS 10 MILES OF ROAD AND WE GO OUT AND WE LOOK AT IT TOGETHER.

AND THE PURPOSE OF THAT IS TO DO IT FOR TWO REASONS.

ONE, TO MAKE SURE THAT EVERYBODY'S INTERPRETATION OF PAVEMENT DISTRESSES IS THE SAME.

AND IF IT'S NOT, WE'LL TALK ABOUT WHY.

IF YOU REMEMBER WE'RE ADHERING TO A SET OF RULES THAT WE'RE ADOPTING FROM THE US ARMY CORPS.

WE ALSO USE IT TO QC THE DATA, IN CASE THERE'S ANY UNIQUE DESIGN FEATURES THAT WE NEED TO ACCOUNT FOR OUT ON THE ROADWAYS AS WELL.

COUPLE OF THINGS THAT ARE DIFFERENT ABOUT THIS SURVEY VERSUS SURVEYS YOU'VE DONE IN THE PAST.

IN THE PAST, THE WAY YOU FOLKS DID THE SURVEYS, YOU DO WHAT I CALL A SAMPLING APPROACH.

SO YOU HAD EQUIPMENT THAT SURVEYED THE ROADS, HAD SIMILAR DOWNWARD IMAGERY, NOT AS HIGH RESOLUTION, BUT IT WAS SAMPLED.

SO THEY DIDN'T SURVEY THE ENTIRE LENGTH OF EACH SECTION. WE DID.

WE'RE DOING IN A COMPLETE LINEAR SURVEY WHERE WE'RE SURVEYING AND RATING ALL IMAGERY THAT FALLS BENEATH THE VAN AS IT ROLLS.

[02:45:01]

TRADITIONALLY, IT WAS A SAMPLE SURVEY.

THE REASON IT WAS A SAMPLE SURVEY, IT'S NOT A BAD THING, IT'S JUST AN EVOLUTION OF TECHNOLOGY.

BUT THE REASON IT WAS A SAMPLES BECAUSE THEY HAD HUMAN OPERATORS GO IN AND DRAW IN ALL THE CRACKS AND GRAPH TYPES.

SO IT'S VERY TIME-CONSUMING PROCESS.

WITH THE EVOLUTION OF SOFTWARE TECHNOLOGY, THAT'S NOT A PROBLEM ANYMORE.

WE CAN PROCESS DATA VERY, VERY QUICKLY ON THE FLY AS WE ROLL.

>> DOES IT ACTUALLY MEASURE HOW DEEP A POTHOLE IS AND WHATNOT?

>> THE DEPTH OF THE POTHOLE DOESN'T MATTER AND THE EXTENT SEVERITY UNDER D6433, BUT THE SIZE.

IT'S GOING TO BE THE SIZE OF THAT HOLE, BUT IT DOESN'T MEASURE DEPTH.

IT GETS THROWN OUT. SAME THING WITH CRACKING.

IT MEASURES THE DEPTH, BUT IT GETS THROWN OUT BECAUSE NOTHING USES THE DEPTH AS A PART OF THE CALCULATION.

SO WE DID THIS VERY SAME PILOT HERE IN GALVESTON.

AND ONE OF THE THINGS THAT WE LOOK FOR THAT WAS A LITTLE DIFFERENT FROM THE LAST SURVEY TOO, IS THAT THE TYPES OF DISTRESSES MATTER AND THE WAY YOU CLASSIFY THEM MATTERS.

SOMETHING THAT'S EVOLVED WITH THE TECHNOLOGY IS WE HAVE THE ABILITY TO DISTINGUISH BETWEEN THESE TWO DISTRESS TYPES.

ONE IS CALLED FATIGUE CRACKING THAT YOU SEE ON THE LEFT IN THERE, CLASSIC LOAD RELATED DISTRESS.

ALLIGATOR CRACKING IS WHAT EVERYBODY CALLS IT.

IT'S CAUSED BY THE POUNDING OF TRAFFIC OR NOT ENOUGH STRUCTURE TO WITHSTAND THE LOADING THAT'S GOING ON.

THE OTHER IS BLOCK CRACKING. IT'S PURELY ENVIRONMENTAL.

SO A LOT OF FOLKS COULDN'T DISTINGUISH BETWEEN THE TWO IN THE PAST. WE CAN.

AND THAT'S IMPORTANT BECAUSE THE IMPACT OF THOSE DISTRESSES ON THE PCI IS DIFFERENT THAN OTHERS AS WELL.

ALL THE DATA THAT WE CAPTURED ON THE VAN, THERE'S A GPS COUPLED WITH INERTIAL NAVIGATION AND IT'S ALL LINKED BACK TO YOUR GIS.

SO AS WE RAN THE ROADS, ALL THESE LITTLE BREADCRUMBS WERE DROPPED ON THE ROADWAY NETWORK SUCH THAT WE CAN LINK IT BACK TO YOUR EXISTING SEGMENTATION THAT RESIDES IN YOUR WORK ORDER MANAGEMENT SYSTEM HERE IN THE CITY.

WHAT YOU'RE SEEING HERE IS A QUICK PLOT AND THE MAP AS WE START DIVING INTO THE CONDITIONAL DISTRIBUTION ACROSS THE CITY AS WELL.

SO YOU CAN SEE VARIOUS COLORS ORGANIZED LIKE A STOPLIGHT, GREEN, YELLOWS, AND REDS.

I DO HAVE TO GIVE YOU FOLKS KUDOS BECAUSE THERE IS A LOT OF GREEN OUT THERE. [OVERLAPPING]

>> THEY'RE MOSTLY GREEN.

>> I HAVE TO SAY THIS IS MY FAVORITE NERD.

[LAUGHTER] I CAN TELL.

>>THANK YOU FOR THAT.

>> I'M GOING TO TELL MY KIDS THAT. I'M GOING TO TELL CHRIS THAT.

>>GOOD POINT. ON THE WEST END THERE, YOU SEE A LOT OF GREENS AND LIGHT GREENS.

POINT I WANT TO MAKE THOUGH, WHEN WE TALKED ABOUT PRESERVATION EARLIER, LIGHTWEIGHT PRESERVATION ACTIVITIES, ALL THOSE LIGHT GREENS AND DARK GREENS ARE PRESERVATION CANDIDATES.

THEY ARE SOMETHING THAT COULD USE SOME PRESERVATION TECHNIQUE.

THEY'RE NOT MELON OVERLAY CANDIDATES YET.

WE COULD DO SOMETHING FAR MORE COST-EFFECTIVE.

WHEN YOU GET INTO THE YELLOWS, THOSE ARE GOING TO BE A LOT OF THE MILL AND OVERLAY CANDIDATES.

AND OBVIOUSLY THE RED ARE GOING TO BE FULL RECONSTRUCTION TYPE CANDIDATES.

AS YOU ROLL IN THERE.

SO WE TAKE A LOOK AT THE DATA.

IT TELLS US A STORY.

YOUR NETWORK AVERAGE PCI SCORE IS 76.

SO WE WANT TO THROW EVERYTHING IN A BLENDER AND WE AVERAGE IT.

76 IS WHAT YOU GET ON A SCORE. THAT'S NOT BAD.

IN TERMS OF AVERAGES, TYPICALLY ON AVERAGE, WE SEE ABOUT BETWEEN 16-65 ACROSS THE COUNTRY.

IN TEXAS, THAT AVERAGE HOVERS BETWEEN ABOUT ABOUT A 67 AND 70 ON AVERAGE.

SO IT'S A GOOD SOLID SCORE. YES SIR.

>> SO THERE'S ONE COLOR I DON'T SEE UP THERE IS THERE'S A PINK THAT'S REFLECTED IN THIS DRAWING.

SO WHAT IS PINK REPRESENT? [OVERLAPPING]

>> HOW ABOUT YELLOW AND RED.

>> OR AN OVERLAY?

>> I THINK IS A PAINTING PLAN.

LIKE LOOKING AT HIS MATH HERE, THERE'S TOO MANY LAYERS TURNED ON.

A COUPLE OF LAYERS NEED TO BE TURNED OFF AND WE'RE SEEING A PAINTING PLANT AND PCI AND PAVEMENT TYPES.

THERE'S ALL STUFF FILAMENTS.

>> I'M SORRY.

>> NO, GREAT QUESTION. PCI WERE IN PRETTY GOOD SHAPE% OF GOOD ROADS.

THIS IS SOMETHING ELSE THAT I LOOK AT WHEN WE SEE THE DATA AND THE AVERAGE THAT WE SEE ACROSS THE COUNTRY IS ABOUT 15%.

WHEN WE SEE%AGES ABOVE THAT, IT TELLS US THAT AN AGENCY HAS BEEN REINVESTING IN THE ROADWAY NETWORK, ESPECIALLY OVER THE LAST DECADE OR SO, THAT IS APPARENT WITH THE NUMBER OF ROADS THAT FALL IN THE SATISFACTORY IN GOOD CONDITION.

THE NEXT IS BACKLOG.

NUMBER OF ROADS THAT FALL BELOW A PCI OF 40.

THESE ARE YOUR FULL RECONSTRUCTION CANDIDATES.

YOU DON'T HAVE A LOT OF THEM.

YOUR BACKLOG RIGHT NOW TODAY, IS THAT ABOUT LESS THAN 2% OF THE NETWORK.

THERE IS BACKLOG OUT THERE.

THESE GUYS RIGHT HERE AREN'T GETTING READY TO FALL INTO BACKLOG THERE BETWEEN THAT 40 AND 55 RANGE AND WE'RE GOING TO TALK ABOUT THOSE BECAUSE THOSE TELL AN IMPORTANT STORY BECAUSE THEY'RE AT THE STEEPEST PART OF THEIR DEGRADATION CURVE RIGHT NOW, THEY WILL BECOME BACKLOG AT SOME POINT VERY SOON.

THE REASON I MENTIONED BACKLOG AND WE ALWAYS LOOK AT IT IS BECAUSE AS AGENCIES MANAGED BACKLOG, 10% IS WHAT I WOULD CONSIDER FINANCIALLY IDEAL, LESS THAN 10% BACKLOG, IT'S GOOD PLACE TO BE,12% OF WHAT I WOULD CALL AVERAGE AND

[02:50:02]

15% IS WHERE WE GOT A PROBLEM ON OUR HANDS AND THE PROBLEM IS, IS BECAUSE BACKLOG STARTS PILING UP FASTER THAN YOU CAN PUMP CAPITAL UNDER THE PAVEMENT MANAGEMENT PROGRAM ONCE YOU START FLIRTING WITH 15 AND 20% ON THAT SCALE, BUT YOU FOLKS ARE NOWHERE NEAR THAT NOW AND WE'LL TALK MORE ABOUT PRESERVATION HERE IN A MINUTE, BUT IF WE CAN KEEP THESE ROWS IN GOOD CONDITION, WE CAN SLOW THEIR DEGRADATION SUCH THAT THEY DO NOT BECOME MILL & OVERLAY CANDIDATE SOONER THAN YOU WOULD PROBABLY LIKE.

IF WE LOOK AT DISTRIBUTION, I'M GOING TO FLY THROUGH THIS QUICKLY BECAUSE I THINK I'VE BEEN TAKING A LITTLE BIT MORE TIME THAN I SHOULD.

WHAT YOU'RE SEEING HERE IS THE SURFACE THAT DISTRIBUTION YOU CAN FOLKS ARE PRIMARILY ASPHALT, 85% ON THAT CATEGORY.

THIS IS A DISTRIBUTION BREAKDOWN OF ASPHALT AND CONCRETE AND VERY GOOD SHAPE OUT THERE.

FROM THAT PERSPECTIVE, ON AVERAGE, ASPHALT SCORED AN AVERAGE PCI OF 75.

WHAT DID WE DO WITH ALL THIS DATA? WE STARTED RUNNING MODELS AND TO DO THAT, WE MET WITH CITY STAFF TO DETERMINE WHAT'S IN YOUR TOOLKIT, WHAT'S AVAILABLE, AND WHAT CAN YOUR FUNDING ACCOMMODATE FOR IT? WE BUILT THIS MATRIX AND THIS TOOK SEVERAL MONTHS OF WORKING WITH YOUR TEAM TO BUILD THIS FOR US TO UNDERSTAND WHAT YOU CAN DO AND WHAT YOU CAN'T DO.

A COUPLE OF THINGS YOU'LL NOTICE IS WHEN I SAY WE RUN MODELS, WE RAN LIKE 10 DIFFERENT MODELS.

ALL OF THEM WERE OPTIMIZED, MEANING THEY USE SURFACE PRESERVATION ACTIVITIES EXCEPT YOUR BUDGET, BECAUSE WE NEEDED A REAL-WORLD PLAN BASED ON CURRENT PRACTICES OF TODAY.

YOU'LL NOTICE ALL OF THESE ACTIVITIES HERE SAYING NO, IN THE MIDDLE AND OVERLAY, YES.

WHILE WE RAN THEM IN THE OPTIMIZE MODELS, WE DID NOT IN YOUR PARTICULAR BUDGET.

A COUPLE OTHER THINGS TO NOTE ON THE PRESERVATION ACTIVITIES THAT WERE PROGRAMMED IN.

WE DID USE LOCAL HOUSTON RATES FOR THE PRESERVATION ACTIVITIES LIKE SLURRY SEALS AND MICRO SURFACING AND THEN WE INFLATED THEM ANOTHER 25% FOR YOUR ISLAND EFFECT IN TERMS OF COSTS AS WELL.

THAT'S HOW WE WENT THROUGH THAT IN TERMS OF SETUP.

NOW LET'S TALK ABOUT WHY SOME ROADS GET PICKED AND SOME DON'T? EVERYBODY ALWAYS ASKS, AND YOU SHOULD ASK, WHY WAS THIS ROAD PICKED AND NOT THIS ONE? IN A SOUND PAVEMENT MANAGEMENT SYSTEM, YOU USE PRIORITY LOGIC WHEN YOU START BUILDING YOUR LIST OF WHAT TO DO.

WORST FIRST AS A PRIORITY LIST, IT'S NOT VERY FINANCIALLY EFFICIENT AND THAT'S THE NICE WAY OF ME SAYING IT.

BUT IT IS A PRIORITY LIST OF STARTING AT THE BOTTOM, BUT IT'S ALMOST EQUIVALENT TO DIFFER IN THE OLD CHANGES ON YOUR VEHICLES IN FAVOR OF SWAPPING THE ENGINE AT THE END OF THE DAY.

IN THE PAVEMENT MANAGEMENT WORLD, WE USE THESE CONCEPTS TO PRIORITIZE WHAT GETS PICKED FIRST.

THE FIRST IS CRITICAL ROADS.

CRITICAL ROADS ARE BASED ON THE COST OF DEFERRAL.

MEANING WHAT'S THE COST OF KICKING THE CAN AND LETTING ONE ROAD ROUTE FROM ONE CATEGORY TO THE NEXT.

IF THE COST OF DEFERMENT AS TOO GREAT IT BECOMES A CRITICAL ROAD.

IT'S WITHIN 2-4 POINTS OF DROPPING INTO THE NEXT MAINTENANCE AND REHAB CATEGORY.

THE NEXT PRIVATIZATION TOPIC THAT WE LOOK AT AS PAVEMENT TYPE ASPHALT ROADS GENERALLY ALWAYS HAVE A HIGHER PRIORITY THAN CONCRETE BECAUSE THEY'RE DEGRADING AT A MORE RAPID RATE.

SOUND ENGINEERING, TEXTBOOK, PAVEMENT MANAGEMENT, CLASSIFICATION.

HIGHER VOLUME ROADS, AGAIN, TYPICALLY HAVE A HIGHER PRIORITY OVER COLLECTOR AND LOCAL ROADS BECAUSE THEY ARE DEGRADING AT A MORE RAPID RATE, THEY ARE RECEIVING MORE TRAFFIC AS A RESULT AS WELL AND THEN STRENGTH.

WE HAVE THE ABILITY TO USE ALL THIS DATA TO DETERMINE HOW MUCH OF THESE DISTRESSES ON THE ROADS ARE LOAD RELATED ISSUES.

IF A SEGMENT OR A STREET IS EXHIBITING A HIGH PRESIDENTS OF THESE LOAD PROBLEMS, IT CAN BE CLASSIFIED AS WEAK AND THOSE HAVE A SLIGHTLY HIGHER PRIORITY FROM AN ENGINEERING PERSPECTIVE TOO.

ALL THINGS BEING EQUAL RIGHT THERE, PCI IS THE TIEBREAKER AT THE END OF THE DAY.

THAT'S THE LOGIC THAT GOES IN, BUT THE BIG TAKEAWAY HERE IS CRITICAL ROADS.

THAT'S THE FINANCIAL OPTIMIZATION PIECE [NOISE]. THAT'S PART OF THAT.

>> DO YOU EVER FACTOR IN TIME? THERE'S PROBABLY SOME ROADS ON THIS ISLAND THAT HAVEN'T BEEN TOUCHED FOR 30 OR 40 YEARS THAT ARE IN BAD SHAPE, THAT MAY NOT BE HIGH TRAFFIC ROADS, BUT DO YOU EVER.

>> TYPICALLY NO.

NOW, HERE'S WHAT'S UNIQUE ABOUT YOUR MODEL.

WE'RE GOING TO TALK ABOUT THIS HERE ON THE NEXT TWO SLIDES HERE.

YOUR MODEL IS BASED ON YOUR $1.7 MILLION BUDGET, WHICH ONLY FUNDS NOLAN OVERLAYS AND MILL &OVERLAY CANDIDATES EXIST BETWEEN A PCI 40 AND A 60.

FOUR RECONSTRUCTIONS ARE GOING TO NEED SOME OTHER REVENUE STREAM, AND SURFACE PRESERVATION IS GOING TO NEED SOME OTHER REVENUE STREAM TOO.

WITHOUT THAT PIECE IN THERE, THOSE ROADS COULD ABSOLUTELY FACED AFFIRM IT JUST BECAUSE THEY DON'T FIT THE CURRENT MODEL SETUP.

VERY QUICKLY, THIS IS A GRAPHIC THAT SHOWS YOU GRAPHICALLY WHAT THIS COST OF DEFERRAL THING MEANS.

[02:55:01]

ALL OF THESE ROADS HAVE A CATEGORY THAT THEY FALL INTO AND THEY ALL GET A PARTICULAR TREATMENT TYPE.

CALCULATING THE COST OF DEFERRAL OF A ROAD DROPPING FROM ONE CATEGORY TO THE NEXT IS JUST BASIC BACK OF THE NAPKIN MATH THAT ANYBODY CAN DO IT.

THE REAL CRITICAL PART OF FINANCIAL OPTIMIZATION IS IDENTIFYING OLDEST CRITICAL ROADS.

ALL THOSE ONES THAT ARE WITHIN 2-4 POINTS OF DROPPING IN THE NEXT CATEGORY, WE GOT TO CAPTURE THEM NOW BECAUSE IF WE DON'T, THEY COST US MORE TOMORROW.

BY TOMORROW, I MEAN NEXT YEAR, BUT THAT'S THE CRITICAL PIECE TO FINANCIAL OPTIMIZATION AND THAT'S HOW WE PRODUCE THOSE FINAL MAINTENANCE AND REHAB PLANS AS A PART OF THAT.

LET'S TALK ABOUT THE NEEDS AS OF TODAY, IF SOMEONE WROTE THE CITY OF DALLAS IN A BLANK CHECK TO GO OUT AND FIX ALL ROADS IN LIKE NEW CONDITION.

LIKE NEW CONDITION, THAT MAGIC NUMBER WOULD BE ON THE ORDER OF ABOUT $33 MILLION.

NOW THAT MEANS EVERYTHING GETS WHAT IT NEEDS.

SOME THINGS ONLY NEED A LIGHTWEIGHT PRESERVATION ACTIVITY, A SLURRY OR MICRO SURFACE.

OTHERS NEED TO KNOW AND OVERLAY.

OTHERS NEED FULL DEPTH RECONSTRUCTION, BUT JUST TO PUT IT INTO PERSPECTIVE, THAT'S THE SNAPSHOT OF TODAY OF WHAT THOSE NEEDS ARE AND I'VE BROKEN IT DOWN THERE IN TERMS OF DIFFERENT TREATMENT TYPES.

OBVIOUSLY, THERE'S A LOT OF MILL & OVERLAY CANDIDATES OUT THERE, 20 MILLION BUCKS, BUT YOUR SECOND BIGGEST OPPORTUNITY IS ASPHALT PRESERVATION.

THERE'S OVER $7 MILLION WORTH OF OPPORTUNITY OUT THERE OF CANDIDATES THAT YOU COULD APPLY PRESERVATION TO AND THEN BEGIN THE PROCESS OF EXTENDING PAVEMENT DESIGN LIFE AND DEFERRING.

>> WHAT I LIKE ABOUT THIS IS IF YOU LOOK AT MILL &OVERLAY PATCHING ONE AT $16.8 MILLION, THAT'S OVER HALF OF WHAT YOUR OVERALL ESTIMATE IS, THAT GOES TO TELL YOU WHAT HAPPENS WHEN A ROAD FALLS INTO THAT VERY POOR CONDITION AND YOU EITHER HAVE TO DO A FULL MILL OVERLAY OR YOU DO A FULL DEPTH RECONSTRUCTION.

IT IS A DISPROPORTIONATE COST RELATED TO THE OVERALL MANAGEMENT OF THE REST OF YOUR NETWORK.

>> IT ALSO SPEAKS VOLUMES TO THE YEARS AND YEARS OF DEFERRAL ON THAT.

>> YES. EXACTLY.

>> CAN I ASK ANOTHER QUESTION.

I'M NOT SURE WHAT YOU CALL IT.

I'M GOING TO SAY THE WAY I'VE SEEN IT.

I'VE SEEN SOME CITIES IN TOWN, ESPECIALLY THAT HAVE, SEASONAL FLUCTUATIONS WITH WHETHER THAT WILL GO OUT ANNUALLY AND JUST FILL THE CRACKS WITH BLACKS DUMP [OVERLAPPING] BLACK SEAL IS THAT SOMETHING THAT.

>> WE DO THAT. THAT'S SOMETHING THAT THE CITY DOES.

>> WE DO EVERY STREET.

>> DOING AS MANY AS WE CAN GET TO.

>> THE WHOLE PURPOSE OF THAT ACTIVITY IS SEAL ROADS UP TO REDUCE THEIR PERMEABILITY, KEEP MOTHER NATURE OUT AND YOU GUYS GET A LOT OF MOTHER NATURE HERE.

BEING A COASTAL CITY AND THAT'S ALSO THE PURPOSE OF PRESERVATION AND WHEN WE TALK ABOUT SLURRY SEALS AND MICRO SURFACING TOO, IS IT REDUCES ITS PERMEABILITY.

IT DELAYS MOTHER NATURE'S EFFECT ON THE ROADS, WHICH IS OXIDATION MAKING THEM BRITTLE OVER TIME.

HERE'S THE MONEY SLIDES.

THESE ARE THE ONES THAT YOU'VE BEEN WAITING FOR.

THIS IS THE RESULT OF ALL THE MODELS THAT WE RAN WITHIN THE SYSTEM.

THIS IS A TYPICAL BUDGET DRAFT.

YOU'VE GOT TIME ON THE X-AXIS AND THE POST REHAB PCI SCORES ON THE Y-AXIS, YOU'VE GOT A BUNCH OF DIFFERENT MODELS THAT WE RAN THAT FIX ALL THAT WE MENTIONED EARLIER, A DO NOTHING ON THE BOTTOM.

THE BLUE LINE IS THE CITY'S EXISTING BUDGET OF 1.7 MILLION DEDICATED TO MILL & OVERLAY ONLY.

NOW, THE LINE LOOKS A LITTLE DRAMATIC BECAUSE YOU'RE GOING TO SEE ON THE NEXT SLIDE, WHAT HAPPENS IS OVER THE NEXT FIVE YEARS, YOUR PCI IS PROJECTED TO DROP FROM 76-72.

YOU WILL LOSE FOUR POINTS ON AVERAGE FOR THE NETWORK AS A WHOLE.

AS A RESULT OF THAT MODEL RUN AND THIS WILL MAKE MORE SENSE.

JUST WANT TO MAKE SURE I HAD EVERYTHING HERE.

WE'VE TALKED ABOUT 1.7 MILLION BEING DEDICATED TO ROADS 40 AND 60, SO WE'RE GOOD THERE.

THIS GRAPH TELLS A BIT MORE OF A BIT OF A STORY.

YOU'VE GOT ANNUAL BUDGET ON THE X-AXIS AND THEN THE POST REHAB PCI SCORE ON THE Y-AXIS.

THE DIFFERENCE HERE, THAT BLUE LINE, THAT'S THE PROFILE LINES WE'VE PLOTTED, THE TREND LINE FOR ALL THE DIFFERENT BUDGET MODELS THAT WE RAN IN THE SYSTEM.

YOUR BUDGET IS THERE 1.7 MILLION RESULTS IN A NETWORK PCI DROPPED TO 72.

WE ALSO PLOTTED THE STEADY-STATE BUDGET.

WHAT WOULD IT TAKE TO MAINTAIN AN EXISTING SCORE OF A 76.

THOSE DOLLARS WERE 3.2 MILLION TO MAINTAIN THE CONDITIONS AS THEY ARE TODAY IN THE CITY OF GALVESTON.

>> LET ME ASK, BRIAN, IS THAT COMING OUT OF OUR SET ASIDE MONEY?

>> SOME DOES, BUT IT'S ALL GENERAL FUND MONEY.

>> BUT YOU TAKE IT OUT OF IT'S NOT OUT OF THAT AND HE PRESENTED.

>> ON THE PROJECT MARE BECAUSE REMEMBER THE INFRASTRUCTURE SET ASIDE BY CHARTERS FOR PROJECTS AT $100,000 OR MORE.

>> YEAH, WE CAN PUT TOGETHER A WHOLE BUNCH [OVERLAPPING].

>> BUT REMEMBER, THAT EVEN EXCEEDS YOUR SET ASIDE MONEY.

>> YEAH, TRUE.

>> AND YOU SET ASIDE MONEY PART OF THAT IS PAYING THE DEBT FOR YOUR LAST BOND THAT GOT US THAT BIG JUMP WHICH GOT US IN.

>> WHICH ARE SET ASIDE TOTAL FOR THIS YEAR IN THE BUDGET.

>> I THINK I HAVE THAT PRINTED.

[03:00:01]

>> IT'S 8% OF YOUR GENERAL PROFITS [OVERLAPPING].

>> HOW MUCH OF THAT GOES TOWARDS THE BOND?

>> I DON'T KNOW. IT MAYBE 3%.

>> THIS YEAR, WE DIDN'T PUSH ANYTHING OUT TO THE DEBT SERVICE FUND BECAUSE WE GET THAT DEBT RETIRING.

REMEMBER? SHEILA JUST TALKED ABOUT THAT EARLIER TODAY.

WE HAVE BONDS MATURING.

>> BUT YOU KNOW THAT INFRASTRUCTURE IS SET ASIDE IS NOT JUST FOR STREETS TOO.

THAT'S WHAT'S BUYING YOUR FIRE TOWER APPARATUS, IT'S FOR CAPITAL EXPENDITURES OF $100,000 OR MORE THAT ARE INFRASTRUCTURE RELATED.

IT'S NOT 100% COMMITMENT TO TECHNOLOGY.

>> WE'RE TALKING HERE, WE NEED ABOUT TWICE AS MUCH MONEY AS WE PUT INTO IT.

>> WE'RE GOING TO THIS TIME.

>> ISN'T THAT ALWAYS THE CASE [LAUGHTER]

>> EXACTLY.

>> LET'S SEE, LAST TWO POINTS AND THEN I WILL WRAP IT UP AND OPEN IT FOR QUESTIONS.

SO AGAIN, THE $1.7 MILLION, THIS IS FOR THE PAVEMENT MAINTENANCE AND REHAB ACTIVITIES ONLY.

IT DOES NOT INCLUDE OTHER THINGS LIKE UTILITY PAVING, ANY FUTURE BONDS, GROWTH HERE ON THE ISLAND, DRAINAGE CONCERNS.

IT DOES NOT INCLUDE COSTS FOR THAT BECAUSE THOSE CAN'T BE PREDICTED AND MODELED WITH THE DATA THAT WAS AVAILABLE AS WELL, OR EVEN ADDING ADDITIONAL WIDTH.

IF YOU HAVE NARROW ROADS OUT THERE WHERE YOU NEED TO WIDEN THEM, IT DOESN'T ACCOUNT FOR THAT.

THAT'S MORE SQUARE YARD IS THAT YOU ADD TO THE NETWORK WHICH INCREASES THE DOLLARS NEEDED TO MAINTAIN THE EXISTING PAVEMENT OUT THERE.

AND THEN LASTLY, I'LL CONCLUDE WITH YOUR SINGLE LARGEST OPPORTUNITY AFTER REVIEWING THE SYSTEM AND THE ANALYSIS RESULTS IS REALLY EMBRACING SOME SURFACE PRESERVATION FUNDING THAT COULD BECOME A PART OF IT, BECAUSE SO MANY OF YOUR ROADS EXIST IN THAT SATISFACTORY AND GOOD CATEGORY, THE LIGHT GREENS AND THE DARK GREENS, AND THEY ARE PRIME CANDIDATES FOR SURFACE PRESERVATION.

SO IF THAT TOOL IS AVAILABLE, YOU'D SEE THAT LIGHTEN UP ON THE MAP IN TERMS OF SELECTIONS THAT WERE AVAILABLE THERE TOO.

THAT'LL OPEN IT UP TO ANY QUESTIONS.

>> DAVID.

>> I HAVE A COUPLE OF COMMENTS. FIRST OF ALL, EVERYBODY LOVES TO HATE THE ROADS IN THEIR NEIGHBORHOOD.

I'VE HAD OCCASION IN THE LAST FEW WEEKS AND MONTHS TO DRIVE THROUGH MUCH OF HOUSTON AROUND THE MUSEUM DISTRICT, AND THEN GOING THROUGH NEW ORLEANS [OVERLAPPING] WE'RE IN PRETTY GOOD SHAPE.

>> THEY HAVE DRAGGED THROUGH DARK RACE [LAUGHTER]

>> WHEN WE STARTED THIS 10 YEARS AGO, OUR PCI SCORE WAS IN THE DUMPSTER.

WE'VE COME A LONG WAY.

WE'RE TRYING TO GET TO THE NEXT LEVEL.

>> SO WE'RE IN BETTER SHAPE THAN MANY OF THE LARGER CITIES THAT WE'RE FAMILIAR WITH.

SOME OF THIS DOESN'T TAKE INTO ACCOUNT, AND MISS MAXWELL TALKED ABOUT THIS BEFORE, IT DOESN'T MAKE SENSE TO REPLACE THE TOP OF A ROAD IF YOU GOT TO GET INTO THE UTILITIES.

SO WHEN AS UTILITIES AND DRAINAGE WORK, THOSE MAY NOT WIND UP ON THE FINAL LIST HERE BECAUSE YOU GOT TO DIG INTO IT.

>> THAT IS NOT FACTORED INTO THESE NUMBERS.

>> EXACTLY. THAT'S NOT IN THESE NUMBERS.

THERE ARE SPECIAL CASES AS WELL, LIKE MARKET STREET RUNNING THROUGH UT AND B. I DON'T THINK IT'S A HORRIBLE SHAPE, BUT IT'S FULL RAILROAD TRACKS, HAS GOT A TROLLEY TRACK RIGHT DOWN THE MIDDLE OF IT.

THAT WOULD SERIOUSLY COMPLICATE THAT THING.

BUT ONE THING THAT YOU SAID ZACH THAT WHERE'S THE POINT AT WHICH WE CAN'T DO IT IN HOUSE AND WE HAVE TO CONTRACT THIS OUT.

WOULD I BE CORRECT IN ASSUMING WE'RE LOOKING AT AN INCREMENTAL COST TO DOING THAT? AS OPPOSED TO BEING ABLE TO DO THE MNO YOURSELF, WHICH WE DO, AS OPPOSED TO A COMPLETE RECONSTRUCTION.

SO WOULD THINK THAT WHAT'S ZACH SAYING ABOUT MAINTAINING A CERTAIN LEVEL OF THE INDEX, WE'D BE BETTER OFF IN THE FUTURE TO WORK ON MAINTAINING A CERTAIN SCORE, AS OPPOSED TO LETTING EVEN A FEW ROADS DROP INTO THE POINT WHERE WE HAVE TO GO HIRE MAIN LANE OR WHOEVER TO COME AND ACTUALLY [OVERLAPPING]

>> ASK YOURSELF PERFORMING IT'S BEEN ABOUT A THIRD. HAD IT BRIAN?

>> FOR THE MILL AND OVERLAY.

BUT YEAH, WE DON'T EVEN HAVE THE CAPACITY TO DO A FULL DEV RECONSTRUCTION.

WE'D HAVE TO FARM OUT.

>> YOU ALL CAN DO A MICRO SEAL AND YOU CAN DO A MILL AND OVERLAY.

>> RIGHT NOW WE'VE BEEN DOING CRACK SEAL, BUT ONE OF THE THINGS THAT WE'VE BEEN TALKING ABOUT INTERNALLY NOW IS TO DO MICRO SURFACING OR SLURRY SEALING OR WHAT HAVE YOU.

THE OPPORTUNITY HAS AROSE WHERE WE NEED A NEW DISTRIBUTOR TRUCK RIGHT NOW FOR THE MILL AND OVERLAY GROUP, WHICH IS THE TRUCK THAT SPREADS THE TACK OIL BEFORE YOU LAY THE ASPHALT DOWN.

WELL, I ASKED TREE NODE TO START LOOKING AROUND TO SEE IF THERE WAS SOMETHING WE CAN KILL TWO BIRDS WITH ONE STONE OR WE CAN DO A MICRO SURFACING OR SLURRY SEAL AND HAVE IT AS TACK DISTRIBUTOR TRUCK.

>> TACK DISTRIBUTOR GETS USED IN THE FIRST COUPLE OF DAYS OF A JOB AND THEN IT SITS AND WAITS FOR THE NEXT JOB.

[03:05:01]

>> THAT'S EXACTLY RIGHT. SO THEN WE CAN START STANDING UP AN IN-HOUSE CREW THAT CAN START DOING THESE MICRO SURFACING ACTIVITIES.

>> WE ARE GETTING READY TO APPROVE A 2024 BUDGET.

WOULD THIS PLAY INTO YOUR FUTURE CIP AND, OR MAINTENANCE PLANS?

>> THERE'S GOING TO BE CAPITAL NEEDS TO COME OUT AND INFRASTRUCTURE SET ASIDE FUN IN TERMS OF EQUIPMENT FOR SOME OF THIS AS WELL.

WE'RE GOING TO TRY OUR BEST DEFENSE.

THIS YEAR'S PRIORITY FOCUSED ON YOUR PUBLIC SAFETY COST AND WE GOT THOSE INLINE.

THAT TOOK ALMOST ALL OF YOUR GENERAL FUND MONEY THAT YOU HAD EXTRA THIS YEAR.

WE'RE GOING TO CONTINUE TO DIVE INTO THIS AND GO AT IT.

TREE NODE CONTINUES TO IT.

ONE OF THE THINGS WE'RE GONNA DO IS WE'RE GOING TO STAND UP WHAT I CALL, AND THIS IS NOT A TECHNICAL TERM THAT YOU WOULD USE A LARGE SWATH PATCH CREW, MEETING WHERE WE HAVE SOME OF THESE STREETS ARE GOING TO SHOW A LOW PCI SCORE, BUT IT'S A VERY SMALL PART OF THE STREET THAT'S ACTUALLY CAUSING THAT LOW PCI SCORE.

IN ADDITION TO DOING FULL MILL AND OVERLAY, WE'RE GOING TO BE ABLE TO GO OUT AND REPAIR AN INTERSECTION WHERE WE HAVE RIPPLING, OR WE'RE GOING TO BE ABLE TO GO OUT AND REPAIR WHERE WE'VE HAD POOR UTILITY CUTS IN THE PAST THAT CAUSED A PROBLEM IN THE STREET, AND WE'RE GOING TO BE ABLE TO DO THESE LARGE SWATH REPAIRS WITH OUR SECOND PAVING MACHINE AND CREW THAT WE HAVE.

WE'VE GOT A LOT OF THAT FACTORED INTO THIS YEAR.

IN TERMS OF THE SLURRY SEALING THINGS, THOSE ARE THINGS THAT WE'RE LOOKING AT EQUIPMENT TO ACTUALLY IMPLEMENT THOSE.

>> DAVID.

>> ONE MORE QUESTION, AND THIS RELATES TO SOMETHING THAT YOU SAID.

WHAT'S THE DIFFERENCE IN HOW YOU ACCOUNT FOR THIS IN PHOENIX AND HERE? THEY DON'T GET A LOT OF STREET FLOODING IN PHOENIX, BUT WE HAVE STANDING WATER, MOVING WATER ON OUR STREETS.

OFTEN DIDN'T TAKE A STORM HURRICANE, BUT WATER IN THE STREETS.

HOW DOES THAT FACTOR IN? THE QUESTION REALLY IS WHEN YOU'RE TALKING ABOUT THE CRACK SEAL AND THE ASPHALT AND THAT THING, THE SPOT CURING THESE PROBLEMS, IS THAT AN EFFICIENT WAY TO DO THAT GIVEN THAT YOU'RE GOING TO HAVE WATER IN THAT STREET NEXT SUMMER ANYWAY?

>> WELL, THE CRACK SEALING OF A MICRO SURFACING KEEPS THE WATER,

>> DRAINING?

>> INTO THE MINING AND GETTING INTO THE SUB-SURFACE.

>> SO IT IS. BUT ONE OF THE THINGS THAT WE'RE DOING AS PART OF THE DRAINAGE MASTER PLAN IS WE'RE TAKING THE PCI SCORES FROM THIS, AND OVERLAYING IT ON THE DRAINAGE MASTER PLAN SO THAT WE CAN TRY TO KILL TWO BIRDS WITH ONE STONE THERE AS WELL.

>> THE OTHER THING WE'RE DOING TOO AS PART OF OUR NEW ROAD CONSTRUCTION, ONE OF THE THINGS TREE NODE HAS DONE IS THAT YOU LAY ASPHALT ROADS IN STRIPS.

WHAT WE'RE DOING IS WHEN WE COMPLETE A ROAD NOW, WE'RE ACTUALLY SEALING THE JOINTS, WHICH IS A FUTURE POINT OF FAILURE DOWN THE ROAD.

WE'RE PRE-CRACKED SEALING BEFORE CRACK OCCURS.

WE'RE GOING TO SEE HOW THAT WORKS.

BUT SO FAR, WE'VE HAD SOME SUCCESS WITH IT.

>> I FORGOT TO REVIEW THIS IN DETAIL, BUT YOU ALL DID PROVIDE A DRAFT MILL AND OVERLAY PLAN FOR FY24, '25.

>> HAVE YOU ALL OR CAN YOU RUN AN ANALYSIS NOW THAT YOU HAVE THE DATA TO SAY, ONCE YOU DO THESE DRAFTING AND OVERLAYS, YOU'RE GOING TO HAVE RESULT.

THEY'RE ALREADY ON THERE. YOU HAVE A RESULTING PCI SCORE, WHAT THEY ARE.

YOU'VE ALREADY PUT THAT INTO THE MODEL?

>> WE'RE PLANNING TO COME BACK EVERY YEAR, EXACTLY.

THEN WE'RE COMING BACK EVERY YEAR.

THAT'S A TWO-YEAR LOOK AHEAD ON THAT THING, BUT THINGS CHANGE, PRIORITIES CHANGE.

>> THIS IS SOMETHING THAT YOU CAN GIVE A BRIEF UPDATE TO COUNSEL ON A YEARLY BASIS TO SAY, HEY, LISTEN, THIS IS WHAT THE WHOLE CHART LOOK LIKE.

HERE'S OUR OVERALL PCI SCORE, HERE'S HOW WE DID THIS FOR THE PAST TWO YEARS, AND HERE'S WHAT WE'RE RECOMMENDING FOR THE NEXT TWO YEARS.

>> EXACTLY [OVERLAPPING]

>> THAT MIGHT HAPPEN, THAT CHANGES.

>> WE SET A SCHEDULE BASED PRETTY MUCH THAT EVERYBODY IS GOING TO BE ABLE TO BE WORKING IN PAVING EVERY DAY AND WE KNOW THAT JUST DOESN'T HAVE IT.

WE'VE HAD A GOOD SUMMER THIS YEAR.

WE ACTUALLY RAN OUT OF MILL AND OVERLAY MONEY THIS YEAR BECAUSE WE HAD SO MUCH GOOD WEATHER, WE FLEW.

WE'RE ACTUALLY AHEAD IN TERMS OF WHAT WE HAD.

NOT AHEAD BY SCHEDULE, BUT AHEAD BY MONEY.

WE RAN OUT OF MONEY, SO WE ARE HAVING BACK IN DOING SOME THINGS.

BUT WE GET A RAINY YEAR.

WE'RE GOING TO STACK IT OUT.

>> I THINK THIS IS REALLY GOOD INFORMATION TO HAVE TECHNOLOGIES COME A LONG WAY SINCE I TOOK A PAVING DESIGN COURSE 30 YEARS AGO [LAUGHTER] HOW MANY EVER YEARS AGO, FORGOT.

BUT THIS IS A REALLY VITAL TOOL THAT WHEN YOU START DOING COMPREHENSIVE PLANNING.

AS WE KNOW, WE'RE GOING TO START DOING NEXT YEAR.

AND BECAUSE, NOW NOT ONLY DO YOU HAVE PAVEMENT INVENTORY, BUT ALSO SIGNAGE INVENTORY, WHICH CAN THEN HELP INFORM HOW YOU'RE GOING TO BE MAKING TRAFFIC INTERSECTION IMPROVEMENTS.

SO JOB DONE.

>> I SAW IN THERE THAT BASICALLY TO MAINTAIN OUR SCORE, WE NEED TO BASICALLY DOUBLE OUR MONEY THAT WE PUT INTO OUR STREETS.

IS THERE AN ADVANTAGE OF GETTING AHEAD OF THAT? SAY IF YOU COULD DO A 10-MINUTE DOLLAR BOND TODAY TO REPAIR SOME STREETS, WOULD THAT PUT YOU IN A BETTER POSITION TO MAINTAIN IN THE FUTURE?

[03:10:04]

>> SURE, ABSOLUTELY.

AS YOU INCREASE THE CONDITION OF YOUR NETWORK OVERALL, REDUCES THE TOTAL COST NEEDED TO MAINTAIN THE NETWORK AND THE CONDITION THAT IT'S IN.

NOW THE THING TO REMEMBER TOO IS THAT SO THE STEADY-STATE BUDGET THAT'S NEEDED IS $3.2 MILLION.

IF YOU ADD ADDITIONAL FUNDS TO THAT, THAT'S JUST MORE WORK.

AN OVERLAY, SURFACE PRESERVATION AND THINGS LIKE THAT THAT CAN BE DONE OVER TIME.

>> CAN THAT LOWER YOUR STEADY-STATE BUDGET IF YOU WENT IN THERE AND DID WORK TODAY?

>> IF YOU DID SUBSTANTIALLY ENOUGH, YES, IT COULD IMPACT THE MODELS AS A RESULT OF THAT TOO.

BUT DON'T FORGET, IF YOU ADD PRESERVATION TO THE MIX WHICH YOU'RE ADDING IS MORE PRESERVATION CANDIDATES AS WELL.

AS YOU DO IN MILLET OVERLAY AND YOU MOVE IT FROM A PCI TO 42, AND IT NOW BECOMES A 94, AND STARTS SLOWLY DEGRADING.

IT'S GOT A LITTLE BIT OF TIME WHERE IT'S A MICRO SURFACE OR A SLURRY CANDIDATE, WHERE YOU CAN DO THAT INSTEAD AND YOU CAN GET A LOT FURTHER WITH THOSE LIGHTWEIGHT ACTIVITIES TOO.

>> VERY GOOD. ZACH, I WANT TO THANK YOU VERY MUCH.

>> THANK YOU FOR HAVING ME. I APPRECIATE IT.

>> VERY INTERESTING, VERY GOOD TO KNOW.

[OVERLAPPING] EXCUSE ME.

>> THE JOB.

>> WE GOT CALLS BUT THANK YOU.

>> THERE WE GO. [OVERLAPPING]

>> WHAT IS YOUR OVERALL RECOMMENDATION HERE? WE SEE THAT THE 3.2 MILLION TO MAINTAIN WHERE WE ARE TODAY, BUT WOULD THAT BE YOUR RECOMMENDATION OR IS THERE SOMETHING ELSE THAT WE NEED TO BE LOOKING AT?

>> THIS COMES DOWN TO A LEVEL OF SERVICE QUESTION.

YOUR NETWORK AVERAGE PCI SCORE, IT'S NOT BAD.

IT'S ACTUALLY IN REALLY GOOD SHAPE.

THE AMOUNT OF BACKLOG YOU HAVE IS NOT BAD.

CONSIDERING WHAT WE ANALYZE AND WE DEAL WITH ON A DAILY BASIS ACROSS THE COUNTRY.

IF ROAD CONDITIONS, IF YOU DEEM ROAD CONDITIONS ACCEPTABLE HERE IN THE CITY, 76 IS A GOOD SOLID SCORE TO MAINTAIN.

I WOULD ARGUE MY ONE SOLID RECOMMENDATION THOUGH, IS THAT YOUR BIGGEST OPPORTUNITY IS A SURFACE PRESERVATION PROGRAM BECAUSE YOU CAN REDUCE THE COST OF YOUR ROADWAY OWNERSHIP ON YOU FOLKS BY EXTENDING THE DESIGN LIFE OF THOSE ROADS OVER TIME.

IF A 76, IF YOU'RE NOT HAPPY WITH THE OVERALL FEEL AND LOOK OF THE NETWORK, MAYBE A 76 ISN'T GOOD ENOUGH FOR GALVESTON.

>> I THINK YOU HEARD DAVID, SAY THAT NO MATTER HOW GOOD THE ROADS ARE, YOU'RE GOING TO GET COMPLAINTS.

>> YEAH. [LAUGHTER]

>> THAT IS RIGHT.

>> BEFORE ZACH LEAVES, LET ME SAY AGAIN, WE FOUND THE PCI SCORE TO BE SUB SUB PAR WHEN WE STARTED THIS PROCESS 10 YEARS AGO, I WILL GIVE A LOT OF CREDIT TO TORINO, ROB, AND BRANDON FOR STAYING ON TOP OF THIS STEP.

[APPLAUSE] OUR PUBLIC WORKS AREA, WHILE IT MAY NOT BE WHERE EVERYBODY WANTS IT TO BE.

IT IS FAR SUPERIOR TO WHERE IT WAS IN THESE GUYS.

THOSE NUMBERS ARE THERE AS A DIRECT RESULT OF THEIR HARD WORK.

I WILL TELL YOU TOO THAT ONE OF THE THINGS THAT WE'RE GOING TO BE FACTORING INTO THIS AS BRANDON HAS DONE A VERY GOOD JOB OF PLANNING.

I KNOW MR. FRANKLIN THINKS ALONG THESE SAME LINES.

WE HAVE DONE A LOT OF THINGS BY GUT FEEL AROUND HERE WE ARE NOW DATA SUPPORTED ON WHAT WE'RE DOING.

WE'RE GOING TO BE DATA SUPPORTED ON OUR DRAINAGE PLAN.

WE'RE GOING TO BE DATA SUPPORTED ON OUR UTILITIES AND WE'RE DATA SUPPORTED ON OUR STREETS.

NOW, THE CHALLENGE COMES IN AND WHERE BRANDON'S EXPERTISE IS GOING TO COME IN AS CONSOLIDATING THESE AND FUNDING THEM IN AN INAPPROPRIATE MANNER.

REMEMBER, A ROAD THAT IS TORE UP FOR UTILITIES IS NOT NECESSARILY FUNDED FOR REPLACEMENT OUT OF THE ROAD BUDGET.

IT IS PART OF THE UTILITY REPAIRS.

A ROAD THAT HAS DRAINAGE WORK ON IT, IT IS NOT NECESSARILY FUNDED OUT OF THE STREETS FUND.

IT'S FUNDED OUT OF THE DRAINAGE FUND.

THESE HAVE DIFFERENT FUNDING SOURCES.

NONE OF THEM ARE OVERFLOWING WITH MONEY, AS YOU KNOW FROM LOOKING AT YOUR BUDGET.

HOWEVER, THIS SCORE, THIS IS FANTASTIC WHAT THEY'VE DONE, BUT IT'S NOT 100 PERCENT ALL-INCLUSIVE.

THERE'S GOING TO BE SOME MORE TO THIS THAT COMES INTO IT.

WHILE 3.2 IS YOUR TARGET NUMBER, YOU'RE GOING TO SEE I THINK SOME MAINTENANCE LEVEL IS MAINTAINED AS A RESULT OF OTHER PROJECTS THAT AREN'T NECESSARILY FACTORED INTO THIS.

THERE'S A BIGGER PICTURE THAT'S GOING ON HERE.

THESE GUYS HAVE DONE A FANTASTIC JOB.

I CAN TELL YOU THAT IN ADDITION TO THE WORK THEY'VE DONE, ROB AND TORINO AND BRANDON THEY HAVE GONE THROUGH THESE MAPS WITH THEM OVER AND OVER AND OVER AGAIN AND LOOK AT THIS AGAIN AND DO THIS AGAIN AND DO THIS AGAIN AND SO I DON'T KNOW HOW MANY OF THESE CALLS.

I'VE BEEN ON JUST A FEW. YOU'VE BEEN ON?

>> WE'VE BEEN ON A LOT OF THEM.

>> YES. THANK YOU TO THIS COMPANY TOO FOR THEIR HELP.

THEY HAVE DONE A FANTASTIC JOB.

>> GREAT PRESENTATION. WE HAVE JOHN AND MIKE AND THEN WE'LL WIND THIS UP. JOHN.

>> THE COMPETING LIST.

WHERE DO WE STAND ON THAT? WHAT'S THE STATUS ON THAT? HOW DO YOU LOOK AT THAT LIST? HOW DO YOU PRIORITIZE THAT LIST?

>> WE PRIORITIZE BASING ON THE CRITERIA HE JUST WENT OVER THERE AND WE'RE GOING TO TACKLE IT PRETTY MUCH IN THE ORDER THAT IT'S LAID OUT FOR THE NEXT COUPLE OF FISCAL YEARS THAT WE HAVE IN THERE.

COURSE, WHERE THE DELAYS ARE GOING TO HAPPEN, EMERGENCY, WATER LINE BREAKS, CAVINGS.

[03:15:03]

THOSE THINGS AREN'T GOING TO BE FACTORED INTO THIS.

IT'S REALLY AN AGGRESSIVE LIST.

>> CAN YOU ZOOM THAT SAID LIST?

>> YEAH. WE'RE GOING TO BRING IT TO YOU FOR ADOPTION.

HOPEFULLY IN OCTOBER.

I ACTUALLY WANT TO BRING IT WITH THE VEHICLE THAT WE'RE TALKING ABOUT, PURCHASING ONE AND THE SAME.

IT'S COUNCIL APPROVED AND WE'RE NOT STRAYING FROM IT UNLESS COUNSEL HIT ON IT.

>> JUST A LITTLE HISTORY. WHEN I GOT HERE, THE CITY DID NOT OWN A MILLING MACHINE.

THE CITY HAD A BROKEN PAVING MACHINE.

WE DID NOT HAVE PROFESSIONALLY PATCHING EQUIPMENT.

WE WERE JUST THROWING ASPHALT IN THE HOLES, WHICH IS A LOT OF WHAT WE'RE OVERCOMING NOW.

WE NOW HAVE THREE PAVING MACHINES.

WE HAVE TWO MILLING MACHINES, WE HAVE A PRO PATCH MACHINE, WE HAVE A DURA PATCH MACHINE.

WE HAVE AUTOMATED TRUCKS OUT THERE WORKING THESE THINGS NOW.

WE HAVE A CRACK SEAL TEAM THAT WE DIDN'T HAVE.

WE HAVE COME A VERY LONG WAY.

I DON'T WANT ANYBODY THAT'S WATCHING TO THINK, "OH MY GOD, THE CITY HADN'T DONE ANYTHING." WE HAVE COME FROM ZERO TO 76 PRETTY MUCH IN A FASHION THAT I THINK IS PRETTY RAPID FOR IT GIVEN THE CONDITION OF THE CITY AND HOW OLDEST CITY WE ARE AND THINGS LIKE THAT.

I'M NOT GOING TO SIT HERE AND AT ALL TAKE CREDIT FOR THAT.

THAT CREDIT GOES TO THESE GUYS.

THEY HAVE DONE A FANTASTIC JOB.

MY ONLY CREDIT I CAN TAKE AS THEY GET TO LISTEN TO ME, SAY I NEED MORE, I NEED MORE ANYMORE.

THEY'VE DONE A GOOD JOB OF BALANCING THAT.

>> MIKE.

>> I DON'T KNOW ABOUT THIS TAX, BUT WHERE EVERY TIME YOU BUY A GALLON OF GAS, THERE'S A TAX ON IT FOR ROADWAYS.

>> THAT'S WHAT MAINTAINS YOUR STATE ROADWAYS HERE IN GALVESTON.

>> NOTHING STAYS LOCAL, COUNTY?

>> THE COUNTY GETS P7 OFF YOUR LICENSE.

YES, THEY DO. EVERY ROMAN BRIDGE TAX.

>> BUT WE BENEFIT FROM THAT.

>> ALONG THOSE LINES.

>> ON COUNTY ROADS?

>> THIS IS A WHOLE, ANOTHER SUBJECT AND WE'LL NEED TO MOVE ON.

WE'VE TALKED ABOUT AN IMPACT FEE HERE IN A CITY.

WE TRIED TO APPROACH THAT HERE A NUMBER OF YEARS AGO AND THAT FELL ON DEAF EARS.

BUT WE MAY NEED TO LOOK AT THAT WHOLE CONCEPT.

>> IMPACT FEES. THERE A WAY TO FUND THINGS, BUT I WILL TELL YOU JUST BE CAUTIOUS.

YOU ARE BUILT OUT CITY SO YOUR IMPACT FEES DON'T NECESSARILY GENERATE WHAT YOU THINK THEY'RE GOING TO GENERATE.

>> I WAS THINKING THE SAME THING.

>> IT'S LIKE WHEN PEOPLE TALK ABOUT MANAGEMENT DISTRICT OFFICE AND YOU TAKE ONE BIG BUILDING OUT OF THAT MANAGEMENT DISTRICT. THEY HAD A WHOLE LOT THERE.

>> BRIAN, REMEMBER THEY ADOPTED THE IMPACT FEE BUT SET IT AT ZERO.

>> WE SET IT AT ZERO.

I REMEMBER THAT AREA.

>> WHAT IF WE EVER DO REQUIREMENTS SAY FOR NEW DEVELOPMENTS SAYING YOU NEED TO PUT IN CONCRETE ROADS?

>> SURE. THOSE ARE BUILDING DESIGN STANDARDS THAT YOU CAN ABSOLUTELY REQUIRE.

>> ZACH. THANK YOU VERY MUCH. APPRECIATE IT.

>> I WILL DO THAT. [LAUGHTER]

>> THANKS ZACH.

>> TELL YOUR KIDS HI.

>> JINEA, LET'S GO TO HC, PLEASE MA'AM.

[8.C. Discuss Solid Waste Operations, Rates, Services And Related Matters (B. Cook - 20 Min)]

>> HC DISCUSS SOLID WAY TO WASTE OPERATIONS RATES, SERVICES, AND RELATED MATTERS.

>> HAVE A LOT MORE QUESTIONS. BRANDON, YOU HAD 45 MINUTES FOR THESE TWO, WE JUST AN HOUR.

>> I DON'T KNOW HOW MANY OF YOU HAVE HAD THE OPPORTUNITY TO MEET MR. BENDER? WE BROUGHT MR. BENDER AND THIS IS PROBABLY ONE OF THE FIRST TIMES IN OUR HISTORY THAT WE'VE HAD A PROFESSIONAL WASTE MANAGEMENT PERSON ON ARE STILL RUNNING OUR WASTE MAN.

>> RIGHT ON SCHEDULE.

>> BUT IT'S GOOD TO PUT A NAME WITH THE FACE.

>> IT'S NICE. I'VE SEEN YOU ALL, I'VE MET A FEW OF YOU AND HAPPY TO PUT THE PRODUCT TOGETHER.

>> BEFORE HE GETS REALLY IN THE KNOWLEDGE HE HAS BROUGHT.

AT THE SAME LEVEL THAT WE'VE TALKED ABOUT THE STREETS AND LEVEL OF TECHNOLOGY TO OUR SANITATION DEPARTMENT THAT WE NEVER HAD.

NOW, HOPEFULLY YOU WILL SEE DIMINISHED CALLS OF MS. KANS.

IT'S ALWAYS GOING TO HAPPEN, BUT YOU'RE GOING TO SEE DIMINISHED CALLS AND THE OTHER THING IS YOU'RE STILL GOING TO GET SOME CALLS FROM MS. KANS.

BUT WHAT THE PEOPLE MAY FIND OUT IS WE HAVE CAMERAS AND THINGS ON THE TRUCKS AND WE KNOW WHEN THEIR CAN CAME OUT.

MR. BENDER HAS DONE A FANTASTIC JOB WITH THAT.

>> MY WIFE NOT TO CALL ANYMORE.

>> THANK YOU, EVERYBODY. IT'S NICE TO BE HERE.

I'LL GIVE YOU SOME QUICK BACKGROUND SINCE BRANDON TOOK SO MUCH TIME WITH PAVING.

[LAUGHTER] I CAME HERE FROM SPOKANE, WASHINGTON, I WAS BORN AND RAISED THERE.

I'VE BEEN IN THE SOLID WASTE INDUSTRY SINCE WELL, THIS MILLENNIUM, I STARTED IN MAY OF 2000 WITH A PRIVATE COMPANY.

WE SERVED PROBABLY 15 SMALL CITIES AND TOWNS AND HAD A STATE PERMIT FOR A BIG PORTION OF TWO COUNTIES, AND ALSO DID WORK IN IDAHO.

IT'S PRETTY BROAD REACH.

HAD TRUCKS TO COLLECT EVERYTHING FROM A 32 GALLON CAN DO WITH 40 CUBIC YARD CONTAINER.

WE OWNED OUR OWN TRANSFER STATION WHICH PUSHED A COUPLE OF 100,000 TONNES TO OUR RECYCLING CENTER.

WE'VE MARKETED AND COLLECTED AND BUILD AND SHIPPED.

WAS THERE FOR 17 YEARS.

BRIEF HIATUS. WENT AND SOLD THE SOLID WASTE EQUIPMENT TO MUNICIPALITIES AND FOUR WESTERN STATES IN HAWAII, SO THAT WAS AWFUL.

[03:20:02]

THEN I TOOK A JOB WITH THE CITY OF SPOKANE AND A SIMILAR ROLE THAT I NOW HAVE WITH GALVESTON.

I WAS LUCKY ENOUGH TO GET THE OFFER TO COME DOWN HERE.

I ALWAYS WANTED TO RETIRE ON THE GULF.

I GOT HERE 10 YEARS EARLIER.

THE CLICHE IS IT RINGS TRUE TO ME IS I WASN'T BORN IN TEXAS, BUT I GOT HERE AS SOON AS I COULD.

ANYWAY, THAT'S JUST A LITTLE BACKGROUND.

I GOT HERE AND REALLY WAS TASKED TO TAKE A HARD LOOK AT THE DEPARTMENT AND LIKE BRIAN ALLUDED TO EARLIER, THE DEPARTMENT WAS RUNNING ON FUEL AND NOT FAT.

HOW DO WE GET FAT? WE SPENT TIME COMBING THE NUMBERS.

I SPENT TIME IN THE TRUCKS, SEEING HOW WE DO OUR JOB AND ONE THING ABOUT GARBAGE IS IT REALLY IS CONSISTENT WHEREVER WE ARE.

EVERYBODY WANTS TO GET THEIR ROUTE DONE.

THEY DON'T WANT TO CAUSE PROBLEMS, THEY DON'T WANT TO GET INTO ACCIDENTS, BUT IT'S INHERENTLY RISKY JOB.

ANYWAY, SO I WENT OUT AND CHECK THE FIELD OPERATION, OF COURSE, MET MY SUPERVISORS AND THEN WE STARTED GAME PLANNING AND WHAT WE FOUND WAS WE WERE DEFICIENT WITH A BUSINESS SYSTEM THAT LET US MEASURE OUR PERFORMANCE.

THERE WAS REALLY NOTHING BUT A COLLAPSE OF TRUCKS INTO A GEOGRAPHIC AREA. WE'RE DONE.

THERE WAS REALLY NO WAY TO REALLY OVERSEE THE DEPARTMENT AND INFLUENCE EFFICIENCIES AND CHANGE IN A POSITIVE MANNER AND I THANK EVERYBODY HERE FOR ENDORSING OUR PURCHASE FOR SOME SOFTWARE LAST YEAR, WHICH HAS BEEN INSTRUMENTAL IN SCRUBBING THIS INFORMATION FOR THIS PRESENTATION.

THAT IS THE BRIEF OVERVIEW.

WE'VE LOOKED AT OUR COST OF DOING BUSINESS.

WE'VE LOOKED AT OUR RESERVES AND IT DOESN'T PAINT A GREAT PICTURE RIGHT NOW.

THIS YEAR WE'RE GOING TO RUN OUR FUND BALANCE TO ABOUT A 1/3 OF WHAT WE NEED, ACTUALLY A 1/4 OF WHAT WE NEED.

IF YOU'LL LOOK AT THAT AND AS WE SPREAD OUT THE NEXT FIVE YEARS, IT JUST GETS A LITTLE MORE BLEAK.

IT'S A BIG NUMBER AND WE LOOKED AT 100 WAYS TO TACKLE THIS AND WE'LL GET TO THAT AS THE SLIDES PROGRESS.

>> JUST SO I UNDERSTAND REAL QUICKLY MR. BENDER.

ON YOUR COLLECTION FEES, YOU SAY THERE ARE NO RATE INCREASES, BUT YOU'RE GENERATING MORE COLLECTION FEES YEAR OVER YEAR.

HOW IS THAT?

>> THAT'S JUST COLLECTION OF GROWTH. [OVERLAPPING]

>> GROWTH OF COLLECTION FEES? BUT WE HAVE A STABLE POPULATION.

>> WELL NO, WE HAVE GROWTH OF SECOND HOMES, SHORT-TERM RENTALS.

>> I GOT IT. SO THIS IS LITERALLY ADDING.

>> IT'S 1%.

>> JUST CHECKING IT, THANKS.

>> ARE THERE ANY QUESTIONS ON THIS BEFORE I CYCLE OVER? THIS IS HOW WE GOT HERE.

WE HAD FLAT REVENUE.

IT WAS A RATE INCREASE IN 2012 AND THEN IT REMAINED FLAT UNTIL 21 AND WHAT I UNDERSTAND THAT WAS BASICALLY AN INFLATIONARY CATCH UP FROM THAT NINE-YEAR PERIOD.

>> BASICALLY COVERED THE FUEL?

>> YEAH. ABOUT 2% AND WITH GARBAGE, THEIR CPI INDEX IS ENTIRELY DIFFERENT BECAUSE YOU ARE HEAVY IN FUEL, YOU ARE HEAVY IN STEEL.

>> LET ME BACK UP REAL QUICK AND MAKE SOME BECAUSE WE HAVE SOME NEW COUNCIL MEMBERS. KEEP IN MIND.

WE ARE REQUIRED BY CHARTER FOR THE CITY TO PROVIDE RESIDENTIAL TRASH SERVICE BY CHARTER.

YOU WILL DIRECT COMPARATIVE TO CITIES OUR SIZE ARE ALMOST NON-EXISTENT, BUT MOST OF THEM CONTRACT OUT THEIR SANITATION WORK.

WE ARE ONE OF THE FEW CITIES OUR SIZE, THAT OPERATES AN IN-HOUSE RESIDENTIAL SANITATION SERVICE AND I'M GOING TO KEEP EMPHASIZING RESIDENTIAL BECAUSE THAT'S TIPPING YOU OFF TO WHERE HE'S GOING TO GO WITH THIS.

>> WE'VE HAD FLAT REVENUE ON AND REALLY IT HASN'T KEPT UP WITH THE RISING COSTS.

WE ACTUALLY WERE ABLE TO DIG INTO OUR COMMERCIAL RATES AGAIN, THEY'RE HERE, SO THAT'S WHAT WE'RE CHARGING AND THERE WAS REALLY NO ASSESSMENT TO IT.

WE FOUND OUT THAT OUR COMMERCIAL SERVICE RATES ARE, WE'RE RUNNING IT AT A NEGATIVE MARGIN IF YOU WILL.

>> WHEN YOU RUN COMMERCIAL RATES AT A NEGATIVE MARGIN, THAT MEANS EVERY RESIDENT ON THE ISLAND IS SUBSIDIZING THE COMMERCIAL RATE.

>> MAY I ASK A QUESTION? IT'S ONLINE BUT ON A DIFFERENT SUBJECT BUT THE SAME SUBJECT.

COULD WE MAKE SHORT-TERM RENTALS A COMMERCIAL RATE? IT'S THE BIGGEST COMPLAINT WE GET ABOUT THEIR TRASH.

>> FIRST INTERPRETATION, WE'RE TALKING ABOUT TWO DIFFERENT RATES.

ARE THERE TWO DIFFERENT RATES? [OVERLAPPING] WHY ARE YOU RUNNING AT A NEGATIVE ON THE COMMERCIAL RATE?

[03:25:02]

>> BECAUSE WE DON'T CHARGE ENOUGH FOR THE SERVICE THAT THEY'RE GETTING SEVEN DAYS A WEEK OR THEY'RE GETTING EIGHT CANS.

>> THAT'S THE DOWNTOWN. [OVERLAPPING].

>> THERE'S ANOTHER WAY. THERE'S A DOWNTOWN RATE AS WELL.

>> WE ARE ACTUALLY COMPETING AGAINST PRIVATE SECTOR?

>> THOSE COMMERCIAL OPERATORS.

THEY DON'T HAVE TO USE CITY SERVICE. RIGHT?

>> WHY ARE WE NOT CHARGING ENOUGH?

>> BECAUSE WE HAVE ALLOWED OUR RATES TO FALL WELL BELOW THE COMMERCIAL RATES.

>> WE HEAR THAT.

>> WE DIDN'T DO A RIGHT ANALYSIS ON IT.

THE LAST TIME WE INCREASED RATES, IT WAS JUST AN INFLATIONARY ADJUSTED.

>> TO COVER THE FUEL.

>> PROBABLY WHENEVER THE RATES WERE DONE A DECADE AGO OR SO, THEN THAT'S WHENEVER THEY DID THE RATE ANALYSIS.

>> UNTIL DUST AND IMPLEMENTED THE SOFTWARE.

WE DIDN'T HAVE A GOOD INVENTORY OF THE COMMERCIAL ACCOUNTS NOR THE NUMBER OF LIFTS OR ANYTHING ELSE THAT HE NOW HAS TO DO THIS ANALYSIS.

>> OF COMMERCIAL BUSINESSES, WHAT PERCENTAGE ARE USING PRIVATE SERVICES? IN WHICH PERCENTAGE YOU USE ON.

>> MOST STILL USE PRIVATE SERVICE.

BUT WE'VE GOT A DECENT SIZE COMPONENT OF COMMERCIAL.

>> TWENTY FIVE PERCENT, 30%?

>> I'D SAY WE PROBABLY PROVIDE 25-30%.

BUT THE PROBLEM IS CRAIG, THAT'S BECOMING A GROWING NUMBER BECAUSE WE HAVE PEOPLE NOW LEAVING PRIVATE SERVICE TO COME TO US BECAUSE WE ARE SO MUCH CHEAPER AND THE ONLY REASON WE'RE CHEAPER IS BECAUSE THE RESIDENTS ARE PICKING UP THAT ADDITIONAL SERVICE COST.

>> I HAVE A QUESTION ON YOUR COMMERCIAL RATE.

YOUR COMMERCIAL RATE, LIKE WE HAVE A COMMERCIAL PROPERTY REPAID BY COMMERCIAL RATE.

WE DON'T EVER HAVE TRASH PICKED UP BECAUSE WE USE THEM FOR STORAGE, BUT WE AND THE PERSON DOWNTOWN WHO GETS THEIR TRASH PICKED UP EVERY SINGLE DAY, THEY'RE PAYING THAT SAME RATE?

>> THEY'RE PAYING A HIGHER RATE.

>> PROBABLY STILL NOT WHAT YOU'RE PAYING FOR YOUR COMMERCIAL DUMPSTER.

>> NO, I'M PAYING THE CITY.

WE JUST DON'T I'M TRASH.

IT'S A STORAGE FOR US.

>> ANY QUESTIONS? ANYWAY, OBVIOUSLY, OUR EXPENSES HAVE RISEN.

EVERYBODY KNOWS, WAGES, BENEFITS, FUEL IN PARTICULAR REALLY IMPACTS OUR DEPARTMENT AND HAS PROBABLY EVEN MORE EXPONENTIALLY OVER THE LAST FEW YEARS.

THIS IS OUR PREVIOUS ROUTE MANAGEMENT SYSTEM.

WHEN YOU TAKE A NEW JOB, YOU WANT TO SEE WHAT YOU'RE WORKING WITH AS FAR AS HOW YOU'RE GATHERING DATA AND HOW YOU'RE ASSIGNING WORKLOAD AND INFLUENCING PURCHASING.

WE REALLY DIDN'T HAVE ANYTHING.

LIKE I SAID, THEY KNEW WHAT THEY WERE DOING.

THE GARBAGE WAS GETTING PICKED UP, BUT THERE REALLY WASN'T ANY RHYME OR REASON TO HOW IT WAS BEING DONE.

>> THE ROUTES WERE IN THEIR HEADS.

>> NOW WE'VE GOT THE RUBICON SYSTEM AND EACH EACH ROUTE HAS AN IPAD, A TABLET.

THEY HAVE STOPPED BY STOP ROUTING WITH ASSOCIATED ADDRESSES AND WE CAN GET EFFICIENCIES.

WE CAN ALSO GET INSTITUTIONAL MEMORY.

IF YOU HAVE A DRIVER LEAVE, IT'S RIGHT THERE FOR THEM.

THERE'S NOT THE GAPS IN SERVICE THAT WE'VE HAD IN THE PAST.

THE OTHER FUNCTIONS OF THE SYSTEM, WHICH IS GREAT.

WE HAVE REAL-TIME PROGRESS TRACKING.

LIKE WE HAD SOMEBODY PROBABLY CALL IN SICK AND SO THERE WAS AN OPEN ROUTE.

IT'S SCHEDULED BUT NOT COMPLETED.

THEY'LL COMPLETE THEIR ROUTES AND THEN THEY'LL BE A ROUTE ASSIST AND WE CAN SEE HOW MANY TRUCKS ARE PICKING THAT UP SO WE KNOW THAT THE STOPS ARE COMPLETED AT THE END OF THE DAY AND IF THEY AREN'T, THEN THERE'S USUALLY AN EXCEPTION POSTED TO IT.

THAT'LL BE THE NEXT SLIDE. THEY COULD TAKE A PICTURE OF A CAN NOT BEING OUT, HIT THE BUTTON AND SAY NOT OUT, THEY WON'T COLLECT IT OBVIOUSLY AND THEN IF THE RESIDENT CALLS, WE CAN SAY, HEY, WE WERE THERE AT WHATEVER TIME THAT SLIDE SAYS AND YOUR CANS WEREN'T OUT.

IT HELPS INFORM HOW WE ROUTE, HOW WE RESPOND TO COMPLAINTS AND JUST SAVES FUEL TIME AND WEAR AND TEAR ON YOUR EQUIPMENT.

THE OTHER THING THAT CAME ALONG WITH THIS IS WE HAVE CAMERA INTEGRATED GPS.

IN THIS PARTICULAR TRUCK, IT'S AN AUTOMATED SIDE LOADER.

IT'S GOOD FOR SAFETY, IT'S GOOD FOR DRIVER BEHAVIOR AND IT'S REALLY GOOD FOR ROUTE MANAGEMENT.

>> DAMAGE CLAIMS.

>> DAMAGE CLAIMS FOR SURE, BRIAN.

YOU COULD ACTUALLY SEE THE ARM GETTING THE CAN.

YOU CAN SEE WHAT WAS IN IT.

IF SOMEBODY HAD A BUCKET OF PAINT, YOU'D BE ABLE TO PINPOINT IT AND GET SOME INFORMATION OUT TO THE RESIDENTS SAYING THAT'S A PROBLEM.

SOME OF THE DEPARTMENT HIGHLIGHTS AND I KNOW THIS IS OVER THE PAST, I GUESS, 16 MONTHS.

WE HAVE THE ELECTRONIC ROUTING IN WITH OUR STAFF INFORMATION AND SEQUENCING.

WE HAVE A GOOD RESOURCE FOR FIELD CREW AND ON OUR CALL CENTER AND THE SUPERVISORS.

WE FINALLY HAVE A FULL COMPLEMENT OF TRUCKS, WHICH MAKES IT A LOT EASIER TO ANALYZE THE OPERATION.

THAT IS A HUGE PLUS.

[03:30:04]

THEN THE ONE THING, AND I KNOW WHEN THE CALLS COULD ESCALATE, IT PROBABLY SEEMS LIKE WE'RE OUT THERE MISSING BLOCKS AND STREETS AND NEIGHBORHOODS, BUT WE'RE ACTUALLY PROVIDING RELIABLE SERVICES THAT EXCEEDS THE INDUSTRY STANDARD.

EIGHTY THOUSAND PICKUPS IN THE COURSE OF A MONTH, IF YOU'RE TALKING ABOUT 4.33 WEEKS, OUR MISS-RATE IS 0.027%.

FOR AN EXAMPLE, WHEN I WAS IN SPOKANE, MISS-RATE USED TO BE A KPI AND IT WAS 0.07%.

AT THAT POINT THEY'RE LIKE, THAT'S NOT EVEN A MEASURABLE AT THAT POINT.

THIS IS INCREDIBLE.

WHEN YOU TAKE INTO ACCOUNT THAT WE HAVE A LOT OF PEOPLE THAT DON'T LIVE HERE FULL-TIME AND THEY COME DOWN, THEY HAPPEN TO BE ON GARBAGE DAY, AND THEY DON'T PUT THE CAN OUT BECAUSE THEY'RE JUST HERE FOR THE WEEKEND OR THE WEEK, I THINK THAT'S EVEN MORE IMPRESSIVE.

GUYS DO A GREAT JOB AND WE'RE GIVING THEM THE TOOLS TO CONTINUE TO DO SO.

>> THEY ARE EMBRACING THIS.

>> THEY ARE. THAT WAS FANTASTIC.

>> AS A CONCERN, WE HAD GOING IN AND THE GUYS HAVE EMBRACED IT. THEY'VE DONE A GREAT JOB.

>> YOUR TRASH GUYS ARE AMAZING. [OVERLAPPING]

>> THEY ARE UNBELIEVABLE.

>> THEY ARE PROS. ABSOLUTELY. I COULDN'T BE LUCKIER TO HAVE THAT CREW.

WE'VE GOT SOME ACTIONS WE'RE PROPOSING TO CORRECT THOSE RED NUMBERS FROM THAT SECOND SLIDE.

BUT AGAIN, WE'LL RAISE COMMERCIAL RATES TO COVER OPERATING EXPENSES AND THEN TO ALIGN WITH THE MARKET RATES BECAUSE THE ONE THING THAT CITY HAS DONE, AND I THINK THIS IS A RARITY, IS YOU'VE GIVEN YOUR COMMERCIAL SECTOR FOUR DIFFERENT HAULERS TO CHOOSE FROM.

YOU'RE GIVING THEM COMPETITION, YOU'RE GIVING THEM A REALLY GOOD MARKET FOR THAT.

I DON'T THINK WE NEED TO BE ONE OF THEIR OPTIONS, ESPECIALLY IF WE'RE DOING IT.

>> WE DON'T NEED TO BE COMPETING AGAINST TAX PAYING BUSINESSES HERE IN GALVESTON.

>> THE OTHER PROPOSED ACTION IS WE DISCONTINUED SERVICE TO THE DOWNTOWN CUSTOMERS AND THEY RECEIVE SEVEN-DAY A WEEK SERVICE, WHICH IS PROBABLY OUR MOST EXPENSIVE.

IT IS WITHOUT A DOUBT OUR MOST EXPENSIVE BUSINESS COMPONENT.

>> HOW MANY DOWNTOWN CUSTOMERS GET THAT SUBJECT SERVICE?

>> THIRTY EIGHT.

>> THIRTY EIGHT. SO WE'RE RUNNING AROUND EVERY DAY FOR 38 CUSTOMERS.

>> EXCEPT FOR TERM HOLIDAYS.

>> THAT'S WHEN IT JUST OVERFLOWS.

>> THAT'S TYPICALLY CANS?

>> YEAH, THOSE ARE CANS AND THEN WHATEVER ACTIONS.

>> IN AN ALMOST EVERY INSTANCE, OUR CANS ARE RIGHT NEXT TO THEIR NEIGHBOR'S DUMPSTER?

>> RIGHT. OBVIOUSLY, THIS IS MY DISTRICT AND SO I'M FAMILIAR WITH SOME OF THESE CUSTOMERS.

YOU CAN PRETTY MUCH SPOT THEM BECAUSE IF THEY'VE GOT A ROLL-OFF BEHIND THE BUSINESS, THAT'S ONE OF THESE GUYS.

THE SOLUTION IS WHAT?

>> WE WOULD HAVE A TRANSITION PERIOD WHERE WE ALLOW THEM TO SHOP AND GET THEIR BEST COMMERCIAL DUMPSTER, YES.

>> I'M GOING TO ERASE. MY PHONE IS GOING TO RING OVER THIS, I GUARANTEE IT.

>> I'VE TOLD THEM TO CALL YOU. [LAUGHTER]

>> WITH YOUR NUMBER.

>> I HAVE JUST CHANGED MR. HARDCASTLE'S.

[LAUGHTER] HE'S AWAKE.

BUT WE'VE TALKED ABOUT STANDARDIZING ON A SINGLE COMMERCIAL HAULER FOR DUMPSTER SERVICE DOWNTOWN.

IS IT TIME TO TALK ABOUT THAT AGAIN? IS THERE AN EFFICIENCY?

>> I WOULD TELL YOU THAT WE ARE ONE OF THE ONLY CITIES THAT ALLOWS MULTIPLE COMMERCIAL HAULERS INTO ITS JURISDICTION.

THERE ARE ADVANTAGES TO IT, SOME WOULD ARGUE THERE ARE SOME DISADVANTAGES TO IT.

I'M A BIG BELIEVER IN IT.

THE CITIES THAT I HAVE ASSOCIATED MYSELF WITH THROUGH THE COUNTY WHEN I WORKED THERE ALL DID THAT AND THEY HAD A LOT LESS LITTER AND TRASH PROBLEMS THAT WE HAVE.

>> BUT IT IS TRUE THOUGH, THAT THE ONES THAT DO THAT, THAT HAD THE SUCCESS ALSO USE THAT SERVICE FOR THE RESIDENTIAL?

>> THAT IS THAT IS TRUE AS WELL.

>> WE DON'T PROVIDE DUMPSTERS AT ALL.

>> WE DO NOT.

>> WE DO NOT. WE'RE NOT GETTING THOSE.

>> YOU'RE SAYING THE CITIES YOU'D WORKED WITH DID PROVIDE CHOICE OR DIDN'T?

>> RIGHT NOW WE PROVIDE CHOICE AND NOTHING IN THIS PROPOSAL PROPOSES CHANGING THAT.

HOWEVER, IN THE PAST I HAVE BROUGHT THAT TO THE COUNCIL'S ATTENTION BECAUSE WHAT THAT DOES DO?

>> FIVE YEARS AGO.

>> WHAT THAT DOES DO?

>> I REMEMBER AND BUSINESSES WERE VERY UPSET.

>> SOME, NOT ALL.

>> SOME WERE, SOME WEREN'T.

>> JOHNNY AND DANNY WERE LIKE HEY, BECAUSE WE BID IT OUT. THAT'S THE THING.

WHEN YOU DO THAT, THE CITY BIDS IT OUT AND YOU'RE GUARANTEED LOCKED IN RATES.

>> THAT'S PROBABLY NOT IN OUR PURVIEW ROUTES.

>> THAT'S CORRECT. BUT RIGHT NOW WE'RE NOT PROPOSING CHANGES.

>> LET'S THINK ABOUT BRINGING IT BACK TO TALK ABOUT IT.

>> IT DOES PROVIDE SOME LEVEL OF PROTECTION IF PRICE INCREASES, IT DOES DO THAT.

>> THANK YOU. ANYWAY, WE'RE PROPOSING TO ADJUST THOSE PRICES.

WE'VE JUST FINISHED IN NEGOTIATION WITH BFS LAST PUBLIC SERVICE FOR

[03:35:01]

NEW TRANSFER STATION CONTRACT WHICH EXPIRES THE END OF THIS MONTH.

DURING THAT PROCESS, WE WERE NOT ONLY ABLE TO DROP THE EFFECTIVE RATE TO THE CITY, SO IT ACTUALLY WENT DOWN I THINK $1.78 IN RETURN TO OUR OPERATION, BUT WE NEGOTIATED A RAISE IN HOST FEES, MEANING THAT THE THIRD-PARTY HAULERS THAT WE'RE SPEAKING OF WILL PAY A HIGHER RATE WHICH WILL REBATE THE CITY AND FUND THE DEPARTMENT.

THE TRANSFER STATION IS A VERY IMPORTANT COMPONENT TO OUR ENTIRE SOLID WASTE SYSTEM.

>> KEEP IN MIND, YOU'LL HEAR PEOPLE SAY I'M GOING TO THE DUMP.

WE DO NOT HAVE A DUMP.

WE HAVE A TRANSFER STATION.

EVERY BIT OF GARBAGE YOU PUT OUT GOES TO THIS TRANSFER STATION, IT GETS DUMPED ON THE FLOOR OF THIS BIG WAREHOUSE, THEY SCOOP IT UP, THEY COMPACT IT AND THEY PUT IT IN A TRUCK AND IT GETS TRUCKED OFF TO A LANDFILL.

WE DO NOT HAVE A DUMP HERE ON THE BOTTOM.

WE HAVE A TRANSFER STATION.

>> THE SAME ONE YOU COULD BRING YOUR STUFF TO.

>> ABSOLUTELY. PEOPLE JUST SAY I'M GOING TO THE DUMP, BUT IT'S NOT A DUMP.

>> WE'RE NOT TAKING AWAY THAT YOU GET TO GO IF YOU HAVE YOUR APPLICATION.

>> NO, THERE WILL BE NO NOTICEABLE CHANGE.

>> RESIDENTS WILL SEE NO CHANGE.

>> JOHNNY HAD A QUESTION.

>> YOU'RE PROPOSING A COUPLE OF THINGS THERE.

RAISE COMMERCIAL RATES, JUST CONTINUE CITY SERVICES DOWNTOWN, RAISE TRANSFER FEES. WHAT IS THAT?

>> THAT WAS DONE THROUGH THE BID.

>> THAT WAS DONE THROUGH THE CONTRACT NEGOTIATION.

WE CURRENTLY HAVE A HOST B IN PLACE, BUT THAT NUMBER IS ELEVATED TO SUPPORT THE DEPARTMENT AND SUPPORT THAT CONVENIENCE BECAUSE QUITE FRANKLY, 80,000 OF THE 110,000 TONS THAT ARE DELIVERED TO THAT FACILITY COME FROM THE THIRD PARTY HAULER.

>> LET ME ASK YOU THIS. DISCONTINUE CITY SERVICES DOWNTOWN.

WE PROVIDE OTHER COMMERCIAL ENTITIES SERVICE OUTSIDE OF DOWNTOWN?

>> WE DO.

>> BUT NOT DAILY.

>> NOT SEVEN DAYS A WEEK.

>> WHY DON'T WE JUST GET RID OF ALL THAT?

>> THAT'S WHAT HE'S TALKING ABOUT.

>> THAT'S NOT WHAT HE SAYS.

>> IT STARTS BY REMOVING ALL COMMERCIAL SERVICE.

>> I'M TALKING ABOUT REMOVING ALL COMMERCIAL SERVICES, HE'S TALKING ABOUT JUST DOWNTOWN.

WHY NOT JUST REMOVE IT ALL? WHY ARE WE IN THE COMMERCIAL SERVICE BUSINESS IF WE DON'T MAKE MONEY OFF IT?

>> I WILL TELL YOU IT STARTED.

THERE ARE SOME VERY RARE OCCURRENCES.

I'LL NAME THE 61ST STREET PIER AS AN EXAMPLES.

THEY DON'T HAVE A PLACE TO PUT A DUMPSTER.

WE SERVICED THEM WITH OUR TRUCK.

THEY ROLL THEIR CANS OUT AND WE SERVICE THEM WITH OUR TRUCK.

THAT HAS GROWN INTO IF HE DOES IT, WHY CAN'T I DO IT TYPE THING? THAT'S WHY WE'RE STARTING TO GET GROWTH IN THIS AREA.

WE DON'T WANT GROWTH IN THIS AREA.

WE'RE LOSING MONEY ON IT. WE BELIEVE IT'S BEST HANDLED IN THE PRIVATE SECTOR.

>> BUT IF WE DIDN'T PROVIDE THAT SERVICE TO THE PIER, THEN FIGURE OUT WHERE TO GET RID OF THE TRASH.

>> DUMP IT OUT.

>> JIMMY'S FOR YEARS. JIMMY'S ON THE PERIODS OF GOOD EXAMPLE.

HE HAD A DUMPSTER IN THE LOT ACROSS THE STREET.

HE SAYS WAIT A MINUTE. YOU'RE DOING IT FOR 61ST STREET PIER.

>> SIGN ME UP.

>> SIGN ME UP. WE REALLY DON'T HAVE ANYTHING THAT SAYS WE CAN'T SIGN HIM UP.

WE DID BECAUSE WE'RE SO MUCH CHEAPER.

NOW, GIVEN THAT FACT, I CAN'T SPEAK FOR MR. MCCLURE, BUT I SUSPECT THAT IF WE ALIGN OUR RATES WITH A COMMERCIAL HAULER, HE MAY GET A BETTER OPTION BECAUSE I SUSPECT THESE COMMERCIAL HAULERS ARE GOING TO SHARPEN THEIR PENCIL, COME IN HERE AND GET ALL OF IT.

>> WHY EVEN DO THAT? I VOTED AGAINST THE ORDINANCE BACK FIVE YEARS AGO WHEN WE TRIED TO GO TO A SINGLE HAULER.

>> I VOTED FOR IT.

>> I REMEMBER WE BOTH.

>> JIMMY DIDN'T LIKE ME THAT DAY, BUT THAT'S ALL RIGHT. [LAUGHTER]

>> IT COMES AND GOES.

>> A FEW DAYS IN YOUR LIFE.

>> BUT I DON'T KNOW WHY WE DIDN'T DO THAT BACK THEN.

>> WE DIDN'T HAVE THE DATA THAT WE HAVE TODAY TO SUPPORT WHAT WE'RE RECOMMENDING TO DO TODAY.

WE HAD A LOT OF SUPPOSITION AND HIS SLIDE WITH THE NAPKIN, THAT'S A CAN PHOTO.

THAT'S LITERALLY HOW WE WERE DOING THIS GUYS.

>> THIS IS GREAT DATA. IT TELLS A GREAT STORY.

>> HOW ABOUT CONSIDER ADDING A FEE FOR RETURN TRIPS OR EXTRA PICKUPS, WHICH I CAN SEE IN SOME CASES, BUT LET'S SAY THERE'S FLOODING OR CONSTRUCTION TRUCKS BLOCKING THE STREET? IT'S NOT A FAULT OF THE PEOPLE.

>> I'M NOT ADVOCATING THAT WE WOULD JUST BE PUNITIVE ON EVERY INSTANCE, BUT WE HAVE THE TECHNOLOGY AND WE'RE IN PIRATES BEACH.

SOMEBODY DIDN'T PUT IT OUT BECAUSE THEIR TENANT DIDN'T KNOW WHAT THEY WERE DOING OR THEIR GUEST DIDN'T KNOW WHAT THEY WERE DOING AND WE'RE GOING BACK OUT.

>> I DON'T KNOW WHY [OVERLAPPING] AREN'T COMMERCIAL.

I'M JUST SAYING.

>> THAT'S A WHOLE DISCUSSION.

COUNCIL, LET'S LET MR. BENDER FINISH HIS PRESENTATION.

THEN OBVIOUSLY WE'RE GOING TO CONTINUE SCRUBBING FOR EFFICIENCIES,

[03:40:01]

AND IMPLEMENTING THOSE AS WE EMBRACE THIS TECHNOLOGY AND FULLY UTILIZE IT.

THEN ONE OF THE GAPS WE HAVE NOW IS JUST OUR CART INVENTORY IS JUST NOT MANAGED WELL, SO THERE'S A MODULE IN THAT WHICH WILL HELP WITH PARTS AND CARTS AND THOSE GAPS AND INVENTORY ALL TOGETHER. [OVERLAPPING]

>> WE'VE CHANGED THE CARTS TOO, WE NOTICED THERE ARE SHORTER STURDIER CART, THEY DON'T FALL OVER AS EASY, THINGS LIKE THAT.

>> I KNOW. [OVERLAPPING]

>> OCD IS DRIVING ME CRAZY BECAUSE MY TWO DON'T MATCH ANYMORE, BUT THAT'S OKAY. [LAUGHTER]

>> I'VE ALSO HAD A RECENT INCIDENT WHERE THERE WAS A CART THAT'S FEED TO GRAB THE WHEELS, AND THEY JUST CAME AND REPLACED THE WHEELS AND THEN CART STILL BIG TO GRAB.

>> THAT'S PART OF THE LEARNING CURVE, BECAUSE THERE IS A HOT BUTTON ON THOSE TABLETS WHERE IF A CART HAS DAMAGED, THEY CAN HIT IT AND IT WILL GENERATE A WORK ORDER.

>> NOW THAT IT'S AUTOMATED, ONE OF THE COMPLAINTS I GET A LOT IS SOMEBODY ORDER CARTS AND THREE MONTHS LATER THEY STILL DON'T HAVE ONE.

>> SOME OF THAT'S NOT NECESSARILY INVENTORY, SOME OF THAT'S ADMINISTRATIVE PROCESS THAT WE'RE SCRUBBING IT.

BUT I THINK ONCE WE GET IT TUCKED INTO THE BUSINESS SOFTWARE, WHICH IS RUBICON.

I THINK THAT'LL BE FEW AND FAR BETWEEN.

>> WE'RE BRINGS UP A GOOD POINT ABOUT SHORT-TERM RENTALS AND THINGS LIKE THAT.

>> ANY MORE QUESTION?

DO WE HAVE ANY FEES ASSOCIATED WITH IF THEY ARE OVERLOADING THE CART OR PUTTING ADDITIONAL TRASH OUT ON THE STREET, WE DON'T HAVE ANY [OVERLAPPING]

>> IF YOU HAVE AN AMOUNT THERE.

>> WE HAVE GREAT TECHNOLOGY, IT SEEMS LIKE.

WHY DO WE NOT HAVE A FEE FOR THAT?

>> HE'S PROPOSING ADDING FEES FOR RETURN TRIPS, EXTRA PICKUPS ON CARTS.

>> OVERLOADED CARTS, SHORT-TERM RENTALS.

>> OVERLOADED CARTS.

IT'D BE HARD TO IMPLEMENT A POLICY WHERE SHORT-TERM RENTALS PAY DIFFERENT FEE OR SOMETHING LIKE THAT.

>> UNLESS THERE WAS SOME BENEFIT, IT CAN BE PICKED UP OFF.

>> IF THEY WERE PAYING FOR THE CANNONS OUT THERE AND THEY'RE ABIDING BY THE TRASH SERVICE, IT SHOULDN'T COST US ANYMORE MONEY TO PICK UP [OVERLAPPING].

>> WE DO NEED TO LOOK AT THE AMOUNT OF CANS THEY HAVE.

>> THEY PAY FOR THOSE CANS.

EVERY CAN YOU GET EXTRA, YOU PAY FOR THAT.

>> ALL OF THEM HAVE MULTIPLE CANS.

>> EXACTLY. [OVERLAPPING] WHAT I'M SAYING IS, IF I CAN FINISH IS, IF THERE'S A CAN OUT THERE AND IT'S FULL AND WE PICK IT UP, THAT'S GREAT.

THEY PAY FOR IT. I'M ALL FOR THAT.

BUT IF THEY HAVE A CAN OUT THERE AND THEN THEY HAVE TEN TRASH BAG SITTING NEXT TO THE CAN, THEY NEED TO PAY FOR THAT.

IT LOOKS LIKE WE HAVE GREAT TECHNOLOGY WHERE WE TAKE A PICTURE OF THAT AND WE SEND THEM A BILL OR WE DON'T PICK IT UP.

>> OUR SANITATION DEPARTMENT PICKS UP THINGS THAT NOBODY ELSE.

[OVERLAPPING].

>> YOU SHOULDN'T BE DOING THAT AND IT'LL BE STANDING NEXT TO YOU CAN BUDDY, THEY CAN PICK YOU UP TOO.

>> THE PART OF THE PROBLEM IS WE DIDN'T HAVE THIS TECHNOLOGY.

THIS TECHNOLOGY JUST CAME ONLINE. WE'RE STILL WORKING THROUGH. [OVERLAPPING]

>> THIS IS EXACTLY WHAT WE'RE BUILDING.

>> OUTSIDE THIS IS AN EXACT THIS IS EXACT CASE.

WE REACHED OUT AND JUST TOLD THE CUSTOMER YOU CAN'T STACK THIS UP.

I DID NOT STACK STUFF NEXT TO MY CAN.

NOW I HAVE A PICTURE.

I GOT EVERYTHING. [OVERLAPPING]

>> YOU DON'T HAVE TO CALL BRIAN SAID YOU CALLED THE TRASH TRUCK AND TELL THEM TO STOP PICKING UP? LIKE CONCRETE OR SOMETHING, UNLIKE TELL THEM THIS.

>> OUR GUYS PICK UP EVERYTHING.

>> MR. BENDER IS TRYING TO GET TO A SUGGESTION ON.

[LAUGHTER].

>> DOING A GREAT JOB.

>> I CAN PUT THREE MORE SLIDES WITH ALL THE FEEDBACK.

>> MR. BENDER, COME RECOMMENDATION OR WHAT ARE INCREASED RATES SHOULD GO.

>> LIKE I SAID, WE'VE COME THE INFORMATION, WE'VE LOOKED AT WHERE OUR GAPS, OR WE LOOKED AT WHERE ARE OUR EXPENSES WERE AND THIS IS WHAT WE'RE PROPOSING.

IF WE RAISE OUR COMMERCIAL RATES AND THAT'S NOT INCLUDING DOWNTOWN, THAT'S JUST STUFF THROUGHOUT THE ISLAND TO A MARKET RATE THAT ACTUALLY MAKES THE DEPARTMENT HOLE FROM A FROM A COST OF OPERATIONS STANDPOINT THAT GENERATES $400,000 A YEAR.

THE TRANSFER STATION CONTRACT THAT'S ALREADY BAKED INTO THE VERSION YOU'RE GOING TO SEE NEXT WEEK, SO THAT HAD $614,000 A YEAR AND THEN GOES UP THAT RATE WOULDN'T GO INTO EFFECT UNTIL NOVEMBER 1 BECAUSE THEY HAVE TO NOTICE THEIR CUSTOMERS.

>> GO TO YOUR NEXT TO LAST PAGE OF YOUR PACKET.

>> IT'LL TELL YOU EVERYTHING.

>> IT'LL TELL YOU EVERYTHING THAT WE NEED TO KNOW ON THAT END.

>> IS THAT A SLIDE YOU HAVE TO MR. BENDER IN THIS YEAR?

>> I DON'T HAVE A SLIDE OF THE PROPOSED ORDINANCE.

>> WE GOT PROPOSED ORDINANCE OF MOVING FROM $53.12 A MONTH TO $129 A MONTH.

>> OR COMMERCIAL.

>> THERE NO PROPOSED CHANGE FOR RESIDENTIAL SOLUTION.

>> AT THIS POINT?

>> OUR FORECAST IS SAYING NEXT YEAR WE'RE GOING TO HAVE TO START PICKING UP ADDITIONAL REVENUES AND DEPENDENT ON HOW WE DO IT, IF WE'RE GOING TO START CHARGING FOR

[03:45:01]

OVERFLOWING CANS AND THINGS THAT MIGHT BE SHORT-TERM RENTALS.

>> THE BIGGEST DRIVER OF THIS ARE TWO THINGS, WELL, THE EQUIPMENT COST, BUT IT'S LABOR COST AND FUEL COST.

IF WE HAVE A STABILIZATION FUEL FEES AND OF COURSE WE DO HAVE A LABOR INCREASED COSTS THIS YEAR, THOSE ARE GOING TO BE THE MAIN DRIVERS OF THAT, WHERE WE'RE GOING TO TRY OUR BEST TO KEEP IT AS MODEST OR A NON-EXISTENT AS POSSIBLE.

BUT, UNDERSTAND THAT WHEN GAS GOES UP FOR YOU AT THE PUMP, IT GOES UP FOR THOSE BIG TRUCKS THAT ARE PICKING UP THE TRASH TOO.

>> WHEN DOES THIS ORDINANCE COME IN, COUNCIL?

>> NEXT MONTH IS WHAT OUR PLAN IS.

>> IT'S GOING TO BE NEXT MONTH, YOU THINK?

>> WE'RE PLANNING ON BRING IT IN NEXT WEEK.

>> BE OCTOBER 20TH.

>> OH, NEXT WEEK.

>>> I THINK IT'S NEXT WEEK.

>> NEXT WEEK.

>> SEPTEMBER 25TH.

>> SEEMS LIKE NEXT MONTH, WE MAY STILL BE HERE.

>> WE DON'T HAVE TO DO A WORKSHOP OBVIOUSLY.

>> THIS IS THE WORKSHOP. [LAUGHTER].

>> WE ARE GOING TO ALLOW SOME TIME FOR THIS.

WE'RE NOT JUST GOING TO CUT PEOPLE OFF.

WE'RE GOING TO WORK WITH CUSTOMERS TO TRY TO GET THEM TRANSITIONED OUT.

BUT, THERE WILL BE A HARD DEADLINE AT SOME POINT.

>> A HARD DEADLINE IN THE COMMERCIAL SERVICE, DOWNTOWN SERVICE?

>> DOWNTOWN. THE MAIN ONE THAT THEY'RE GOING TO HAVE TO TRANSITION OVER.

WE'RE THINKING BEGINNING OF THE NEW YEAR IS WHAT WE'RE PENCIL IN IT AT THIS POINT.

>> YOU HAVE UNTIL THE END OF THE YEAR TO GET TO DOWNTOWN.

>> WHEN DO YOU START LOOKING AT POSSIBLY GETTING RID OF COMMERCIAL SERVICE ALTOGETHER?

>> WELL, WITH THE DATA AND EVERYTHING THAT WE HAVE RIGHT NOW, WE'RE GOING TO START LOOKING AT THAT.

AS THIS PART IS OPTIMIZED.

>> JOHN, A GOOD RULE TO FOLLOW ON THIS IS LET'S RAISE THE FEE TO AN APPROPRIATE AMOUNT.

LET'S SEE HOW MANY WE HAVE LEFT.

IF I END UP WITH FIVE COMMERCIAL CUSTOMERS THEN WE KILL IT.

IF EVERY SINGLE PERSON COMES TO ME AND LIKES SMART, AND JUST WANTS TO PAY ME THE SAME AS THEY WOULD PAY WASTE MANAGEMENT, IT'S PAYING FOR ITSELF, WE CAN EVALUATE WHETHER WE WANT TO CONTINUE TO DO THAT OR NOT.

BUT LET'S SEE WHAT WE GET.

I THINK WE MAY SOLVE THE PROBLEM WITH THE FEE INCREASE.

>> VERY GOOD. THANK YOU.

>> BECAUSE WE WANT PEOPLE TO GET THE BEST.

>> YOU'RE DOING A GREAT JOB.

>> GREAT JOB.

>> WELL, THANK YOU-ALL.

>> [INAUDIBLE] COVERS THESE BIG SEATTLE GUY, BUT HE WORKS [LAUGHTER].

>> BELIEVE ME I WILL CHANGE.

>> JANELLE, LET'S MOVE TO ITEM AD, PLEASE.

[8.E. Discussion Of The City Auditor’s Audit Plan For 2023 - 2024 And Possible Amendments ( Brown - 30 Min )]

WE'RE GOING TO SKIP D, AND WE'RE REMOVING E.

>> WHAT ARE YOU GOING?

>> I'LL TELL YOU WE GOING. [LAUGHTER]. [BACKGROUND]

>> DISCUSSION OF THE CITY AUDITOR'S AUDIT PLAN FOR 2023, 2024, AND POSSIBLE AMENDMENTS.

>> [NOISE] COUNCIL, GLENN HAD SENT OUT HIS AUDIT PLAN TO COUNCIL.

YOU'VE HAD IT FOR QUITE A LONG TIME NOW TO REVIEW IT.

HE SENT OUT AN AMENDED PLAN HERE JUST RECENTLY TO YOU TO GO OVER.

LET'S OPEN UP THIS DISCUSSION OF THIS AUDIT PLAN FOR THE COMING YEAR HERE.

LET'S OPEN THAT DISCUSSION UP. YES, DAVID.

>> I HAVE SEVERAL QUESTIONS ABOUT THIS.

SOME OF THIS WE TALKED ABOUT LAST TIME, FOR INSTANCE, ARE HOT AUDITS ACTUALLY PAYING FOR THEMSELVES? ARE WE ARE WE BEING PROPERLY REIMBURSED?

>> GLENN COME ON. HAVE A SEAT.

IF YOU WOULD START RIGHT UP HERE.

SORRY TO KEEP YOU WAITING TODAY.

>> IS MR. MAXWELL COMING BACK?

>> YEAH. I THINK HE'S OKAY BECAUSE I THINK SOME OF THIS IS GOING TO FALL ON HIM.

LINDA, WE ALWAYS BEING COMPENSATED FOR HOT AUDITS.

I DON'T MEAN ARE YOU BEING PAID AS MUCH MONEY AS YOU'RE SPENDING ON THESE HOT AUDITS, BECAUSE THAT WASN'T CLEAR FROM WHAT WE TALKED ABOUT LAST TIME WHERE YOU YOU GO INTO AN AUDIT, YOU DON'T KNOW HOW LONG IT'S GOING TO TAKE.

YOU'RE BEING PAID BY THE AUDIT NOT BY THE HOUR.

THERE MAY BE SOME LEGAL OR REGULATORY REASONS WHY THAT IS TRUE.

>> IT WAS JUST TO GET THE PROGRAM UP AND GOING IN A SHORT PERIOD OF TIME.

WE LATER CAME BACK AND WE SAW THAT WE WERE ABOUT $11,000 UNDERPAID VERSUS THE TIME.

WE GOT THAT WORD TO PARK BOARD.

THEY ADDED ON VERY NEXT AGENDA AND PAID US.

>> WE'RE ALL ON THAT. WE'VE TALKED ABOUT THAT.

>> IT WORK WITH US GREAT.

>> EXCELLENT. THERE'S A SUGGESTION AUDITING PARKING AT THE PORT, PARKING FEES OR PARKING CONTROLS, I HAVE TO GO BACK AND FIGURE OUT WHICH ONE WE'RE TALKING ABOUT HERE NOW.

[03:50:02]

IT'S NUMBER IT'S ENSURE THE FULL COMPLIANCE AT THE PORT OF GALVESTON WITH THE TERRORISTS FOCUSING ON PARKING REVENUE.

>> THEN THE LAST ONE IS COMPLIANCE AUDITS FOR LONG-TERM PARKING FOR THE PRIVATE PARKING LOTS.

WE HAVE ENOUGH DATA TO DO THAT.

IS THAT A LITTLE PREMATURE? WHERE ARE WE?

>> HOW WE ARE GOING TO DEPRESSION THAT THAT'S WHAT COUNCIL WANTED TO SEE.

>> WELL, MAYOR.

>> AT THAT TIME, BUT WE DON'T, BUT WE WILL FIGURE OUT A WAY THAT WE CAN AUDIT THE, YOU'RE TALKING TO YOU ABOUT THE TERRORISTS OF THE MONEY COMING TO THE CITY OF GALVESTON.

>> I AM.

>> LET'S SAY NEXT YEAR ON THE PRIVATE LIVES.

>> SAY THAT AGAIN. [OVERLAPPING]

>> YOUR STATUS REPORT, OKAY.

THEN THERE'S ONE ITEM ON PORT CONTROLS.

GIVEN THE EXTERNAL AUDIT WE'RE TALKING ABOUT TODAY, DO WE FEEL LIKE THAT'S NEEDED ON THIS PLAN?

>> THAT'S WHAT I WANTED TO COME.

>> BECAUSE I GOT TO BE HONEST.

ANY AUDITS THAT ARE DONE ON THE PORT NEEDS TO BE DONE BY AN OUTSIDE AUDITOR.

WITH THE ACTIVITIES THAT HAPPENED AT OUR LAST COUNCIL MEETING, I HAVE LOST CONFIDENCE IN OUR AUDITOR BEING IMPARTIAL, WHICH MAKES ME UNCOMFORTABLE WITH HIM BEING INVOLVED.

THANKS TO THE BOARD, THE TALKING POINTS YOU PROVIDED ONE COUNCIL PERSON WAS INAPPROPRIATE.

ADDITIONALLY, THINGS HE WAS POINTING OUT.

I WENT BACK TO PREPARE FOR THIS MEETING AND READ ALL MR. BULGARINI'S AUDITS.

HE HAD MULTIPLE AUDITS OF THE POOR AND IN ALL THOSE AUDITS WAS CITED IN THE LAST MEETING, NEVER IS IT MENTIONED.

I WENT BACK AND REVIEWED ALL THE AUDIT PLANS FROM THE PORTS EXTERNAL AUDITORS, AS WELL AS REVIEWED THEIR AUDITS AND A LOT OF THINGS THAT ARE BEING SUGGESTED HERE ARE THINGS THAT HAVE ALREADY BEEN DONE, THINGS THAT HAVE PROVEN TO BE ACCURATE.

MR. BULGARINI HAS GOTTEN INVOLVED WITH OUTSIDE INFLUENCES WHICH MAKES THE CREDIBILITY OF OUR AUDITOR QUESTIONABLE, AND I REALLY PERSONALLY WOULD LIKE TO DEFER THE AUDIT PLAN.

THIS AUDIT PLAN I PREFER THE PORT EXTERNAL AUDIT, BUT THE PORT AUDIT, AS WE'RE GOING TO DO ONE, I THINK THE SUGGESTIONS THAT WERE GIVEN TO US OR EXTENSIVE WHAT JEFF SUGGESTION TODAY.

LOOKING AT THEIR INTERNAL PROCESSES, I PERSONALLY JUDGING BY ALL THE AUDITS, AND NOT ONLY DID I READ THEIR AUDIT PLANS, MY HUSBAND WHO AUDITED PUBLIC COMPANIES FOR 25-32 YEARS, ANOTHER ONE OF MY FAVORITE NERDS.

ALTHOUGH HE MAY FAIL [OVERLAPPING] REVIEWED THEM, AND QUITE QUITE FRANKLY, WHEN HE WAS READY FOR MR. GREEN'S AUDITS WAS ASTOUNDED EVEN BY SOME OF THE THINGS THAT WERE WRITTEN THERE.

I WOULD LIKE TO DEFER THIS AND WE'RE NOT GOING TO DEFER THIS.

I WOULD LIKE TO REMOVE ALL THE REFERENCES TO PORT AND USE AN EXTERNAL AUDIT OF WHOMEVER OR FINANCIAL PEOPLE CHOOSE AND LOOK AT THE FIVE ITEMS THAT WERE GIVEN TO US ARE REALLY EXCESSIVE AT THEM AS BORDERS ON A FORENSIC AUDIT.

IF YOU HAVEN'T TAKEN THE TIME TO GO IN AND LOOK AT THE PORT AUDITS, YOU REALLY NEED TO BECAUSE SO MUCH MONEY HAS BEEN SPENT BY THE PORT ON THEIR EXTERNAL AUDITS AND SO MUCH MONEY HAS BEEN SPENT BY THE CITY IN PAST AUDITS THAT CAME FROM OUTSIDE INFLUENCE THAT WERE CHASING DOWN RABBIT HOLES.

[03:55:05]

THAT'S SOMETHING THAT WE SERIOUSLY HAVE TO LOOK AT.

TALKING ABOUT ITEM THAT HAS TO DO WITH FEMA AND THE PORT, IT'S FUNNY, IT'S RARE THAT YOU'LL EVER HEAR ME CLOTHING THE PAPER, AND CERTAINLY NOT WE CAN PASS THESE AROUND.

ROBERT DRAGON WHO ALSO DIDN'T TEXT ME AND PAPER FEMINIST CASE, HE JUST COVERS EXACTLY WHAT HAPPENED WITH THE FEMA WITH THE PORTS EXTERNAL AUDITOR.

>> IS THE FEMA AUDIT ON THIS AUDIT PLAN TODAY?

>> NO. BUT WHAT IS ON THE AUDIT PLAN [OVERLAPPING] INTERNAL CONTROLS AND FINANCIAL AUDITS AS DETERMINED BY THE COUNCIL WHICH RELATES TO THE FEMA.

>> BUT THAT'S A SEPARATE AGENDA ITEM

>> WELL, IT IS, BUT IT IS AND THEN I CLEARLY ASKED.

>> I WANT TO CLARIFY FOR COUNCIL AND MAKE SURE WE'RE FOLLOWING.

WE HAVE A PORT AUDIT THAT WE WANT TO ADDRESS TODAY.

>> TO THE REQUEST OF COUNCIL.

>> TO REQUEST TO COUNCIL.

THAT PORT AUDIT, IF IT'S PART OF MR. BULGARINI'S AUDIT PLAN, THEN WE NEED TO DISCUSS THAT AS PART OF HIS AUDIT PLAN.

IF IT'S NOT, THEN THIS AUDIT PLAN THE WAY I UNDERSTAND IT, DAWN, THIS AUDIT PLAN DOESN'T HAVE A TIMELINE TO APPROVE; IS THAT RIGHT?

>> NO, I DON T THINK IT DOES.

CERTAINLY HAS ENOUGH WORK FOR ME NOW.

>> WHAT MURRAY AND CORRECT ME IF I'M WRONG, MARIE I THINK MARIE IS MENTIONING IS IF WE'RE GOING TO TALK ABOUT A SEPARATE AUDIT PLAN FOR THE PORT WITH AN OUTSIDE AUDITOR THEN SHE'S RECOMMENDING THAT WE DEFER THE CITY AUDITOR'S PLAN TO LOOK AT THAT IN THE FUTURE.

>> BUT IT'S NOT EVERYTHING ON THIS LIST, IT'S IRRELEVANT TO PORT, SO I DON'T THINK WE NEED TO DEFER THE ENTIRE PLANT.

I HAVE QUESTIONS ABOUT OTHER ITEMS ON HERE, BUT I DON'T THINK WE NEED TO DEFER THE ENTIRE PLAN.

>> I WOULD LIKE TO PROPOSE RELATED ITEMS.

>> BECAUSE ONE OF THE QUESTIONS I HAVE IS IF WE'RE DOING, IF BLENDS AUDITING THE BOARD AND YOU HAVE AN AS YET TO BE DETERMINED OUTSIDE AUDITOR.

LET'S THINK ABOUT WHO'S PAYING FOR THEM.

I QUESTIONED THIS THAN OUR LAST MEETING.

IF GLENN DOESN'T CONTROLS AUDIT AT THE PORT AND COMES UP WITH A DEFICIENCY OR A RECOMMENDATION OF SOME NATURE, HOW DO WE ENFORCE THAT? HOW IS THAT DIRECTLY ENFORCEABLE BY US? WE CAN BRING THESE THINGS UP IN A JOINT MEETING AND I WENT IN.

>> THAT'S A GOOD POINT. YOU BROUGHT THAT UP LAST MEETING.

>> IF WE'RE ENGAGING IN OUTSIDE FIRMS DO THIS, THE UNDERSTANDING IF I READ THE MINUTES OF THE WORD BOARD MEETING, WORD-FOR-WORD WILL PAY FOR THAT AUDIT.

>> THAT'S OTHERWISE, THIS IS COMING OUT OF THE GENERAL FUND.

THIS IS NOT A HOT WATER WHERE WE'RE BEING COMPENSATED FOR DOING THIS.

THAT'S WHY I STARTED BY ASKING WHETHER WE'RE BEING COMPENSATED FOR THE HOT AUDITS.

NOW, WHEN YOU DISCUSS THAT, [OVERLAPPING] I HAVE ANOTHER QUESTION ON HERE, BUT GO AHEAD.

>> WHAT YOU'RE SAYING IS CORRECT AND THE BOARD HAS AGREED BY THE REQUEST OF TWO COUNCIL MEMBERS THAT THEY WOULD LIKE AN EXTERNAL AUDIT TO SEE IF THERE'S ANY DEFICIENCIES.

JUST TO POINT OUT THAT A CHAIN OF EVENTS WHICH IS COVERED SO WELL IN THERE, IT WAS A LETTER SENT TO THE STATE ACCOUNTING FOR IT.

THAT STATE A COUNTY BOARD BECAUSE OF ENRON WENT TO THE AUDIT FIRM BECAUSE OF THE PLANCK RECEIVED, AND THEY HAD TO GO THROUGH A COMPLETE AQR, WHICH IS AN AUDIT QUALITY REVIEW.

THEY WENT BACK AND REVIEWED OTHER AUDITS OF THE EXTERNAL AUDITOR IN A PORT.

FROM THAT, THE LETTER WAS GENERATED THAT THERE MAY BE A WEAKNESS AND THAT WHAT'S PROPELLING ALL THIS.

THAT'S WHAT STOPPED THE BOND FOR BEING APPROVED LAST MEETING.

HOPEFULLY, IT WON'T STOP THE BOND FROM BEING APPROVED THIS WEEKEND.

BUT I'M POINTING OUT TO WHAT I'M SAYING AND WHY I DO NOT WANT GLENN INVOLVED IN THE POOR AUDITS.

HE DID AUDITS IN 2020, 2018, 2019 OF THE BOARD AND NONE OF THAT WAS CITED IN HIS AUDITS.

[04:00:06]

[BACKGROUND] THERE'S NO WEAKNESSES IN THERE.

GO BACK AND READ THAT ASSAD WHO ARE ON OUR WEBSITE. [OVERLAPPING].

>> WHICH IS WHAT YOU'RE SAYING.

>> THERE'S NO WEAKNESS.

THERE'S NO REFERENCE.

>> YOU DID AUDITS IN ANY PRESENTED THOSE AUDITS.

>> I'M SAYING THERE'S NO REFERENCE TO THIS THING THAT CAME OUT OF FROM THE LETTER THAT THE O'ROURKE SENT TO THE STATE ACCOUNTING BOARD.

NOW WE'RE GOING TO PAY MORE MONEY FOR WELL, WE'RE NOT PAYING THE PORTS PAY MONEY WHICH THEY COULD BE PUTTING ONTO THE WEST END OF THE BOARD.

BUT WE'RE GOING TO PAY THAT MONEY AND IF WE FOLLOW THOSE FIVE POINTS THAT ARE ON THAT LIST, IT WOULD BE A HUGELY EXPENSIVE AUDIT AND IT WILL PROBABLY TAKE THREE YEARS.

BUT IF WE LOOK AT MAYBE WHAT JEFF WHO INTERVIEWED TO BE REAPPOINTED SAID TODAY, WE DO A AUDIT OF THEIR INTERNAL PROCESSES AND DO IT MAYBE FROM 21-23, THAT WOULD GIVE YOU THE ANSWERS THAT YOU'RE LOOKING FOR, BECAUSE IF YOU GO BACK AND READ THEIR EXTERNAL AUDITS THAT HAVE BEEN DONE BY THE COMPANY THAT THEY WERE USING IS A INTERNATIONAL COMPANY IN THE UNITED STATES ALONE THEY HAVE OVER 50 OFFICES FOR.

WE'RE TALKING ABOUT A REALLY CREDIBLE COMPANY THAT IS NOT GOING TO BLOW THE REPUTATION BECAUSE OF ONE FEMA DEAL.

AND IF YOU GO THROUGH AND READ THEIR AUDITS, YOU CAN ACTUALLY SEE WHAT THEY WERE DOING.

IT WAS ALWAYS POSTED IN THEIR BOOKS.

I'M JUST SAYING, WE NEED TO LOOK AT HOW WE STRUCTURE THAT EXTERNAL, BUT I'M REQUESTING OF COUNCIL THAT WE DO NOT HAVE GLENN INVOLVED IN THE AUDIT.

>> LET'S BREAK IT DOWN.

RIGHT NOW, WE'RE DISCUSSING GLENN'S AUDIT PLAN FOR NEXT YEAR.

I THINK ONE THING THAT WE COULD DECIDE ON IF COUNCIL WANTED TO REMOVE THE TWO ITEMS OF THE INTERNAL AUDITS THAT HE'S GOING TO PERFORM THAT'S IN THIS, HIS AUDIT PLAN FOR THE PORT BOARD AND THE PORT, WE COULDN'T REMOVE THOSE OUT OF HIS AUDIT PLAN.

>> WHY WOULD WE REMOVE BOTH OF THOSE?

>> NOT THE PORT BOARD. [OVERLAPPING]

>> THAT PORT BOARD, WHAT DO YOU MEAN? YOUR TALKING ABOUT HOT AUDITS, YOU TALKING ABOUT AUDIT?

>> THIS IS LISTED ON HIS AUDIT PLAN FOR THE WAY GLENN HAS GOTTEN IN.

IT'S JUST A PLACEHOLDER THERE FOR INTERNAL CONTROL.

>> YOU TALKING ABOUT A WRITTEN FIXED ASSET POLICY AND BEST PRACTICES ON IT.

IT HAS THIS LISTED HERE. [OVERLAPPING]

>> THEN TOO HE'S YELLOWED OUT ARE THE ONES THAT HAVE TO DO WITH THE PORT.

>> I KNOW, BUT I'M TALKING ABOUT THE [OVERLAPPING] PORT BOARD.

>> THE YELLOW ONES ARE ONE IF FOR IT, ONE IS PARK BOARD.

>>WELL, I THINK THAT'S APPLES AND ORANGES.

WE'VE TALKED ABOUT THIS BEFORE YOU AND I, I'D LIKE TO SEE IF WE'RE GOING TO DO THESE AUDITS AND ONE ENTITY, WE SHOULD DO IT ON BOTH, BUT HAVING [OVERLAPPING] THE RIGHT TO GO OUT OF THE PORT, HAVING HIS AGREEMENT WITH THE WORDS BOARD ARE THE ONE THING.

I'M NOT SURE WE HAVE THE SAME ABSENT A RESOLUTION FROM THE TRUSTEES OF THE PARK BOARD, I'M NOT SURE WE HAVE THE SAME LEGAL CAPACITY TO GO DO THAT.

I THINK THAT'S GOING TO FALL MORE ON THE INNER LOCAL AGREEMENT.

>> YOU DO NOT THINK WE HAVE THE SAME RIGHT THAT WE DO WITH THE PORT AS WE DID WITH THE PARK BOARD?

>> I THINK IT NEEDS TO BE APPROACHED TWO DIFFERENT WAYS.

I COULD BE WRONG. THEY'RE TWO DIFFERENT ENTITIES.

>> CAN WE ASK LEGAL COUNSEL FOR THAT OPINION?

>> YEAH. IF I'M UNDERSTANDING THAT YOU'RE SAYING THAT IF WE GO AND DO SOME AUDITS AT THE PORT AND WE FIND SOMETHING WE DON'T LIKE, WE HAVE NO AUTHORITY?

>> WELL, I'M NOT SURE. [OVERLAPPING]

>> IF WE FIND SOMETHING AT THE PORT BOARD THAT [OVERLAPPING] WE DON'T LIKE WE HAVE SOME AUTHORITY.

>> WE OPERATE WITH THE PARK BOARD UNDER AN AGREEMENT.

WE HAVE AN INTER LOCAL AGREEMENT WITH THEM.

[OVERLAPPING] WE HAVE A HOT TAX AGREEMENT WITH THEM.

WE DON'T HAVE SUCH THING AT THE PORT.

>> WE HAVE A CHARTER THAT SAYS WE DO.

>> WITH THE RIGHT TO AUDIT.

>> LET ME ASK YOU THIS THEN, IF WE FOUND SOMETHING OVER THERE THAT WE DIDN'T LIKE WE JUST DON'T DO ANYTHING ABOUT IT?

>> YOU'RE TALKING ABOUT PORT OR PARK BOARD?

>> PORT.

>> WHAT DO YOU DO ABOUT IT?

>> WE GO TO THE TRUSTEES AND WE TALK TO THE TRUSTEES.

>> NO, I'M NOT SAYING THAT AT ALL. I'M ASKING YOU.

>> WE JUST DON'T DO.

I DIDN'T SAY DON'T DO ANYTHING.

I'M SAYING, [OVERLAPPING] WHAT AUTHORITY DO YOU THINK YOU HAVE TO DO SOMETHING ABOUT IT?

[04:05:02]

>> WE DON'T. I AGREE WITH YOU [OVERLAPPING] I SAW THAT IN THE MEETING IN THERE WHEN WE WERE DOING INTERVIEWS..

>> THAT SAVES THE WHARVES BOARD DECIDED IF THERE WAS A DEFICIENCY, WHICH I WOULD FIND VERY HARD TO BELIEVE AT THIS TIME WHEN YOU LOOK AT IT EVERY DAY, BUT I'M JUST SAYING. [OVERLAPPING]

>> HE'S NOT TALKING ABOUT THAT, HE'S TALKING ABOUT CONTROLS.

>> NO, BUT I'M TALKING ABOUT CONTROLS.

I'D SAY THERE WAS SOMETHING WRONG, WE COULD CALL A MEETING AND DECIDE WE WANT TO CHANGE ALL THE WHARVES BOARD.

WE WOULD HAVE THAT.

>> THE ADVANTAGE [OVERLAPPING] OF MEETING WITH THESE BOARDS, AND I'M NOT EVEN GOING TO BLAME COVID, WE HAVEN'T DONE THIS RIGHT. [OVERLAPPING]

>> I AGREE.

>> THAT WE NEED TO SIT DOWN WITH EACH OF THESE BOARDS TWICE A YEAR. EVERY QUARTER.

>> EVERY FOUR TIMES A YEAR.

>> NO, THEN YOU'VE GOT EIGHT OF THEM AND THAT'S ALL WE COULD DO BECAUSE WE DON'T DO ANYTHING ELSE IN THESE WORKS. [OVERLAPPING]

>> WELL, THIS IS ALL THE CITIES BEEN DOING LATELY AS PARK BOARD, WHARVES BOARD ANYWAY.

>> NOT ME, NOT YOU. [OVERLAPPING]

>> I KNOW BUT I MEAN OUR STAFF.

>> NOT IN THIS ROOM. I KNOW IT'S STAFF.

>> MEETING THE PARK BOARD.

>> WHAT'S THAT?

>> MEETING WITH PARK BOARD.

>> BUT OUR SITTING DOWN EVERY TWICE A YEAR WITH EACH OF THESE BOARDS AND HAVING THESE DISCUSSIONS CAN GO A LONG WAY TO ALLEVIATING BOTH OUR AND THEIR STAFF TIME ON THIS. [OVERLAPPING]

>> I AGREE.

>> BECAUSE THEIR STAFF ARE SPENDING TIME WITH US TOO.

LET'S BE CLEAR. WE NEED TO DO THAT.

BUT THAT'S NOT WHAT WE'RE TALKING ABOUT TODAY.

WHAT WE'RE TALKING ABOUT IS DIFFERENTIATING BETWEEN GLENN'S OFFICE AUDITING OF THE PORT AND EXTERNAL [OVERLAPPING] AUDITOR AUDITING THE PORT.

THAT'S SOMETHING THAT'S ALSO ON OUR LIST TO TALK ABOUT.

>> I ASKED THREE TIMES IF THAT WAS [NOISE] SOMETHING THAT COULD BE DISCUSSED IN THIS MEETING AND I WAS TOLD BY THE MAYOR.

>> THAT'S FINE AND CLEARLY, WE ARE DISCUSSING IT.

BUT THAT ISN'T ALL THE QUESTIONS I HAVE ABOUT THE AUDIT PLAN.

WE'RE COMING AROUND TO LET'S TALK ABOUT THE PORT AUDIT LATER TODAY.

THAT'S STILL ON OUR AGENDA.

>> PERSONALLY, I THINK GOING BACK TO GLENN'S AUDIT PLAN HERE, I THINK WE OUGHT TO PULL OUT THE TWO ITEMS THAT ARE INTERNAL CONTROL AND FINANCIAL AUDITS. [OVERLAPPING]

>> I'LL GET DOWN TO IT.

>> I'M SORRY. GO AHEAD. [OVERLAPPING]

>> GO TO PORT AND THE PARK.

>> AND THE PARK BOARD?

>> WE WOULD JUST ADD ANOTHER ITEM ON THERE FOR THE PORT THOUGH.

>> YES, SIR. THEN WE CAN ADDRESS.

>> I WOULD PULL THAT OUT TOO.

I WOULD HAVE THAT DONE BY THE EXTERNAL AUDITORS. [OVERLAPPING]

>> DO YOU MEAN ANOTHER? [OVERLAPPING]

>> I HAD A LITTLE BIT OF PROBLEM WITH THAT BECAUSE WE HIRE GLENN TO DO THESE AUDITS FOR US, AND WE GAVE HIM RAVE REVIEWS.

>> I KNOW AND I APOLOGIZE TO THE BOARD WHEN I WENT THROUGH ON THE REVIEWS, WHEN I WENT THROUGH AND REVIEWED THE AUDITS, REVIEWED EVERYTHING THAT'S BEEN GOING ON, I APOLOGIZED TO THE PUBLIC THAT I GAVE HIM RAVE REVIEWS BECAUSE I THINK I WAS INCORRECT IN THAT.

I HAVE TO SAY IN READING THROUGH EVERYTHING, I'VE LOST CONFIDENCE BECAUSE YOU ARE A RIGHT, THAT LEVEL, THE TARIFFS FOR PARKING AND IT'S GOING TO BE DONE BY CARRIE, I'M GOOD, BUT LEAVING THAT ON THERE.

>> WAIT A MINUTE. THE ONES YOU'RE TALKING ABOUT?

>> YEAH, THERE'S THERE'S TWO ITEMS ON HERE FOR THE PORT.

[OVERLAPPING] ONE IS ONE IS PARKING AND ONE IS THIS INTERNAL.

>> FOR THE PARKING I FEEL SHOULD STAY WITH GLENN.

>> STAY WITH THAT DEPARTMENT.

>> WHAT ABOUT THE FUTURE? I UNDERSTAND YOUR POINT HERE AND YOUR LOSS OF CONFIDENCE IN GLENN, BUT THIS IS A BOARD, THIS IS A COUNCIL AS A WHOLE, ARE WE SAYING AS LONG AS GLENN IS EMPLOYED HERE, HE'S NOT GOING TO DO ANY ADDITIONAL AUDITS AT THE PORT? HAVE YOU-ALL LOST CONFIDENCE IN GLENN SO MUCH [OVERLAPPING] THAT YOU DO NOT WANT HIM OVER THERE AT ALL?

>> I PERSONALLY HAVE WHEN I THINK YOU SHOULD TAKE THE TIME TO READ THROUGH EVERYTHING.

I PERSONALLY HAVE LOST CONFIDENCE IN HIM DOING THAT AT THE PORT, BUT I HAVE PERSONALLY LOST CONFIDENCE IN HIM, AND I'M SORRY THAT I HAD IT CAME UP THIS WAY.

BUT AGAIN, READING THROUGH ALL THIS AND KNOWING THAT THERE'S OUTSIDE INFLUENCES IS DISTRESSING. [OVERLAPPING]

>> THERE'S NOT.

>> WELL, I'M JUST SAYING READING THROUGH THIS, LOOKING AT AUDITS THAT COVERED SUBJECTS AND TO SAY ALL OF A SUDDEN NOW THERE'S AN ISSUE, I HAVE LOST CONFIDENCE, THAT'S MY FEELING.

>> I FINISHED MY AUDITS THREE YEARS AGO.

I HAVEN'T SAID A WORD ABOUT THEM SINCE.

THEN THE MATERIAL WEAKNESS POPS UP AND ALL OF THIS COMES UP AGAIN.

I HAVEN'T SAID ANYTHING SINCE A MATERIAL WEAKNESS SHOWED UP.

>> THEY POTENTIAL MATERIAL WEAKNESS. [OVERLAPPING]

>> WHENEVER IT IS, MY AUDIT WERE DONE THREE YEARS AGO AND I HAVEN'T SAID A THING SINCE. [OVERLAPPING]

[04:10:03]

>> I KNOW.

>> NOW YOU LOSE CONFIDENCE IN ME AND I HAVEN'T SAID ANYTHING.

I DID MY AUDITS, I FINISHED THEM.

>> LET'S GO BACK TO THE AUDIT PLAN.

JOHN, I'M GOING TO POSE A QUESTION TO YOU AND MIKE.

GLENN HAS ON HIS AUDIT PLAN TWO AUDITS, ONE FOR THE PORT AND ONE FOR THE PARK BOARD FOR INTERNAL CONTROLS AUDITS.

I PERSONALLY FEEL THAT SHOULD BE WITH A PRIVATE AUDITOR, [OVERLAPPING] AND GLENN KNOWS THAT WE'VE TALKED ABOUT THAT.

I THINK THAT NEEDS TO BE WITH THE PRIVATE AUDITOR, AND I THINK THOSE TWO THINGS SHOULD BE PULLED OFF THIS AUDIT ON GLENN'S ANNUAL AUDIT PLAN AND COUNSEL CAN TAKE SEPARATE ITEM ACTION ON THOSE TWO ITEMS. BUT I LIKE THE REST OF THIS HERE AND I SUPPORT THAT.

>> ON THAT, FOR THE INTERNAL CONTROLS AUDITS, I KNOW THAT YOU START THE AUDIT WITH A BASELINE AND THEN YOU GO BACK EVERY YEAR AND YOU REVIEW IT TO SEE IF THEY'RE STILL STAYING THAT.

HAVE WE STARTED THIS PROCESS AT ALL?

>> NO, SIR.

>> THIS WOULD BE THE FIRST ONE?

>> I'M JUST DOUBLE-CHECKING ON THAT. THAT WAS MY QUESTION.

>> IT WOULD BE THE FIRST ONE IF WE GO WITH THE OUTSIDE AUDITOR OR WITH GLENN.

>> I JUST WANTED TO MAKE SURE THAT THAT'S WHERE WE WERE AT.

>> ON THE PARK BOARD, WHY DO AN OUTSIDE AUDITOR ON THAT ONE?

>> I'LL TELL YOU MY PERSONAL FEELINGS.

I'M NOT SURE WHAT THE SCOPE WOULD BE FOR THE PARK BOARD, I DON T KNOW.

I THINK DAN AND BRIAN DO AND TOLD ME HE FEELS LIKE HE KNOWS A SCOPE FOR THE PARK BOARD ARE SOME THINGS.

THAT'S SOMETHING THAT I THINK WE NEED TO DISCUSS.

>> I HAVE NO REAL ANYTHING ON THAT.

>> I DON'T EITHER.

>>WHETHER IT'S GLENN OR AN OUTSIDE AUDITOR, BUT WE DO PAY GLENN A LOT OF MONEY TO BE OUR EMPLOYEE HERE. [OVERLAPPING]

>> IT COULD BE ON THE PARK BOARD DEPENDING ON THE SCOPE AND SO FORTH THAT GLENN WOULD BE MORE APPROPRIATE TO DO THAT.

>> HE'S A GREAT, HOT TAX AUDITOR.

>> FOR THE PARK BOARD, YOU'RE RIGHT, JOHN, I THINK, BUT ON THIS PORT ISSUE HAS GOTTEN TO A POINT, AND THIS IT'S NOT AN INDICTMENT OF GLENN IN HIS ABILITIES, BUT I THINK IT WOULD BE A CLEANER ACTIVITY. [OVERLAPPING]

>> ON THE PORT?

>> FOR THE PORT.

>> WE'VE ALWAYS TALKED ABOUT USING AN OUTSIDE AUDITOR ON THE PORT. [OVERLAPPING]

>> YES, SIR. I THINK IF WE WANT TO LEAVE FOR THE TIME BEING THE PORT BOARD IN THIS, BUT I DO THINK THAT THE PORT NEEDS TO BE PULLED OUT OF HIS ANNUAL AUDIT.

>> I DON'T EITHER. I DON'T SEE WHY, BUT OKAY.

>> THE ONLY THING I WOULD SAY IS THAT IS IT THIS ONE TIME, OR FOR THIS EXTERNAL AUDIT, OR DO YOU NOT WANT HIM TO BE OVER THERE IN THE FUTURE AT ALL?

>> I'M GOING TO SPEAK FOR MY SIDE.

>> THAT'S A BIG PROBLEM IN MY EYES IF THAT'S GREAT.

>> FOR MYSELF PERSONALLY, I THINK IT'S JUST THIS ONE TIME.

>> WHY WOULD [OVERLAPPING] THIS EXTERNAL AUDIT? THIS DOESN'T MAKE SENSE.

>> EXCUSE ME.

>> THESE DON'T MAKE SENSE IN THIS PLAN WHILE WE'RE DISCUSSING THIS EXTERNAL AUDIT?

>> YES, SIR. I'M SORRY, I DIDN'T WANT TO.

>> I'M AGREEING WITH THE MAYOR. [LAUGHTER].

>> THAT WAS AN AGREEMENT?

>> I WAS TRYING TO READ THE BODY LANGUAGE.

>> I WAS HAVING A HARD TIME TOO, MAYOR.

>> [LAUGHTER] OKAY. I THINK WE HAVE AN UNDERSTANDING THE PORT'S ACTIVITY WITH THE INTERNAL AUDIT WOULD BE REMOVED FROM MR. BULGARINI'S PLAN, HIS AUDIT PLAN FOR THIS YEAR. YES.

>> ALL RIGHT, GUYS.

>> THAT'S FINE. BEFORE WE MOVE ON, I GUESS AND WE DISCUSS THE PORT AUDIT IN OUR REGULAR MEETING, MY RECOMMENDATION, AND I'LL JUST LET ALL OF YOU HEAR THIS BECAUSE I TALKED TO THE MAYOR ABOUT THIS.

GLENN WOULD HAVE A LITTLE BIT OF INVOLVEMENT IN THE PROCUREMENT PROCESS OF AN EXTERNAL AUDITOR FOR THE PORT.

I WANT TO PUT THAT ON THE TABLE NOW BECAUSE I DON'T WANT [OVERLAPPING] AND THAT'S FINE.

I DON'T WANT TO GET TO THAT MEETING AND GO, WELL, WE ALL DECIDED WE DIDN'T WANT GLENN TO HAVE THAT IN HIS AUDIT PLAN.

THAT'S WHAT I'LL RECOMMEND IN OUR REGULAR MEETING, WE WILL TALK ABOUT THAT AUDIT.

>> I NEED TO UNDERSTAND, THE WAY I LOOK AT GLENN'S INVOLVEMENT IF WE HAVE AN OUTSIDE AUDITOR FOR THE PORT, IS HE IS A POTENTIAL RESOURCE FOR THAT AUDITOR.

JUST AS THEY CAN LOOK AT ANY OTHER TYPE OF RESOURCE MATERIAL,

[04:15:01]

GLENN WOULD BE A RESOURCE FOR THEM.

I DON'T KNOW WHAT PROCUREMENT MEANS AS HE'S INVOLVED WITH THE PROCUREMENT, I DON'T.

>> I THINK THAT'S SHOULD BE SOMETHING BY OUR FINANCIAL.

>> I THINK THE PROCUREMENT IS HAPPENING IN MR. MAXWELL'S OFFICE.

I THINK GLENN IS A RESOURCE FOR ANY OUTSIDE AUDITOR.

I THINK GLENN SHOULD BE GIVEN THE OPPORTUNITY TO REVIEW THAT AUDIT WHEN IT'S TRANSMITTED BACK TO THE CITY BEFORE COUNCIL ACCEPTS IT.

>> I'M SORRY TO INTERRUPT.

>> NO, SIR.

>> LET'S TALK ABOUT THAT IF WE CAN RIGHT NOW.

>> WHAT DOES THAT PROCUREMENT PROCESS LOOK LIKE? MAYBE IF WE CAN GET SOME STAFF TO CHIME IN ON THIS TOO.

>> IT WOULD BE AN RFP FOR SERVICES.

>> IT IS.

>> RFQ RATHER, RFQ.

>> THIS MULTIPOINT DOCUMENT THAT WE'VE BEEN PASSING BACK-AND-FORTH.

I'VE SEEN BACK-AND-FORTH BETWEEN THE MAYOR AND STAFF MOSTLY, AND I'VE BEEN CC'D ON SOME OF THAT, THAT I FEEL LIKE WHAT WE'RE DOING THERE IS DEVELOPING BULLET POINTS FOR THE RFQ.

>> THESE ARE THE SUBJECT MATTER AREAS THAT WE WOULD LIKE SOMEBODY THAT HAS EXPERTISE IN THESE AREAS TO REVIEW, YES.

>> THAT WOULD BE OUTLINED IN THE RFQ.

>> DO YOU KNOW THOSE FIVE BULLET POINTS THAT ARE OUTLINED ON THERE AND WHAT'S REQUESTED? IT WOULD PROBABLY TAKE AN AUDIT FIRM THREE YEARS TO DO.

DO YOU KNOW WHAT THE COST WOULD BE? IT'D BE ASKED.

>> WE ARE NOT LOOKING FOR A THREE-YEAR AUDIT.

>> I THINK WHAT WE'RE LOOKING AT IS THE PORT, TAKING IN CONSIDERATION EVERYBODY'S THOUGHTS HERE, IS WE'RE LOOKING FOR AN INTERNAL CONTROL AUDIT AT THE PORT.

WE CAN DELINEATE THAT WE WANT THEM TO LOOK AT PROCUREMENT, FEMA, AND A TRAVEL, OR WHATEVER WE WANT TO DO, BUT I'M LOOKING AT AN INTERNAL CONTROL AUDIT.

>> IF YOU WANT TO LOOK AT THE INTERNAL CONTROLS, YOU WOULD SHORTEN THE NACHA FROM 80 BECAUSE THAT'S WHAT'S GOING TO BE A THREE-YEAR AUDIT.

ONE OTHER THING I'D LIKE TO KNOW.

IF YOU READ ALL THE INFORMATION THAT'S AVAILABLE ON THE FORVIS SITE AND YOU LOOK AT THE OUTCOME OF THAT LETTER, NO CHANGE THAT FINANCIAL STATEMENTS WERE REQUIRED TO BE MADE, AS A RESULT OF THE AQR, WHICH IS THE AUDIT QUALITY REVIEW OR THE AUDIT.

THAT WAS FROM THE STATE, THE PEOPLE WHO AUDIT, THE AUDITORS, NO CHANGE WAS MADE.

>> WHAT YEAR WAS THAT?

>> IT WAS THIS YEAR WHEN THE LETTER [OVERLAPPING].

>> I NEED TO HEAR WHAT MIKEY SAID NO ABOUT. WHAT MADE YOU SAY NO?

>> BECAUSE THEY'RE ALREADY DOING A.

>> INTERNAL CONTROL AUDIT.

>> INTERNAL CONTROLS AUDIT.

>> NO WE ARE NOT.

>> THE PORT IS.

>> THE PORT IS NOT DOING IT.

>> NO, I THINK I'VE VOTED ON IT.

>> NO. LET ME [OVERLAPPING].

>> IT WAS IN A AS A VOTE.

>> THEY VOTED TO PAY FOR AN AUDIT THAT WE ASKED.

>> THAT WAS A SEPARATE MOTION.

>> SEPARATE MOTION.

>> THAT WAS A SEPARATE. LET ME CLARIFY BECAUSE I KEPT GETTING CALLS FROM EVERYBODY IN THE COMMUNITY ABOUT THIS.

WHAT WE APPROVED AT THE PORT IS WE APPROVED TO HIRE FORVIS TO DO OUR ANNUAL FINANCIAL AUDIT, TO DO OUR PENSION AUDIT, TO DO OUR AUDIT OF FEDERAL FUNDS, AND THINGS LIKE THAT, AND AN INTERNAL AUDIT IF THE PORT WANTED TO PURSUE THAT.

THEY SAID THAT'S GOING TO BE SOMETHING THAT COUNCIL IS GOING TO DO AND RECOMMEND.

SO NO, WE'RE NOT GOING TO FOLLOW UP ON THAT, AND THAT'S WHERE WE ARE.

THEY DID APPROVE THAT, BUT THEY'RE NOT GOING TO FOLLOW THROUGH.

>> THEY ARE GOING TO PAY FOR IT.

>> I'VE LEARNED A LOT OF TALKING ABOUT AUDITS FOR THE LAST TWO MONTHS.

THAT'S WHY I DON'T SEE WHY WE WOULDN'T HAVE GLENN DO AN INTERNAL CONTROL AUDIT.

INTERNAL CONTROL AUDITS, YOU GO IN THERE, YOU LOOK AT THE POLICY, YOU MAKE SURE THEY'RE FOLLOWING POLICY.

>> WELL, GLENN ALREADY DID THEM, AND THEN THE TIME [OVERLAPPING].

>> HE HASN'T.

>> HE HAS.

>> HE HASN'T DONE IT ALL OVER THERE SINCE.

>> [OVERLAPPING] SINCE THE SIGNIFICANT FINDING.

>> WELL, HE HAS DONE IT SINCE 2020, WHEN HE THE [INAUDIBLE] FINDING WAS THERE ON 18TH.

>> THIS IS 2023, AND SO IN 2020, THESE AUDITS ARE ON A ONE-YEAR AUDIT.

YOU GO IN THERE, YOU DO THE AUDIT, YOU LOOK AT POLICY, YOU COME BACK, YOU MAKE SURE THEY'RE FOLLOWING POLICY.

YOU CAN'T GO IN THERE ONE YEAR, DO AN AUDIT AND BE DONE, THIS IS SOMETHING THAT HAPPENS OVER TIME.

>> I UNDERSTAND THAT, THAT IS WHY THEY HAVE AN EXTERNAL AUDITOR AND LOOKS AT THAT AUDITOR [OVERLAPPING].

>> BUT THE EXTERNAL AUDITOR DOESN'T LOOK AT THAT AND THAT'S WHAT CRAIG JUST SAID, THEY'RE NOT GOING TO LOOK AT INTERNAL CONTROLS.

>> THEY ARE NOT GOING TO LOOK AT INTERNAL [OVERLAPPING].

>> AT SOME POINT, WE HAVE TO HAVE INTERNAL CONTROL AUDITS DONE.

[04:20:03]

>> I AGREE.

>> I'M LOOKING FOR SOMEONE TO GO IN THERE, DO FINANCIAL AUDITS OUTSIDE SOURCE, EXTERNAL.

>> EXTERNAL CONTROL.

>> EXTERNAL, DO FINANCIAL AUDITS.

THEY CAN LOOK AT THESE BULLET POINTS, THEY REPORT BACK TO US.

I HOPE EVERYTHING IS BRIGHT AND SHINY.

LET'S GO. BUT FOR ME TO APPROVE $50 MILLION, THAT'S WHAT I NEED DONE.

>> THAT'S WHERE THE INTERNAL CONTROL SHOULD BE LOOKED AT AT THE SAME TIME.

YOU ARE LOOKING AT THE SAME THING.

IN THOSE FIVE BULLET POINTS, YOU'RE LOOKING AT SO MANY ITEMS THAT ARE ALL INTERNAL CONTROLS.

>> THEY ARE NOT ALL INTERNAL CONTROLS.

>> [OVERLAPPING] GO AHEAD.

>> I'M GOING TO REFER TO AN AUDITOR THAT WE HIRE, ARE THOSE TWO THE SAME AUDIT? OKAY. THANK YOU.

>> THANK YOU, MIKE, FOR ANSWERING THAT.

THE QUESTION IN MY MIND IS, IF WE SAY WE WANT A FINANCIAL AUDIT OF THAT PORT, WHAT DOES THAT MEAN, GLENN?

>> WHAT I TOOK IT TO MEAN IS YOU WANT US TO LOOK AT THE CAFA AND MAKE SURE THAT IT IS CORRECT AND THAT YOU WANT US TO LOOK AT ALL PROCESSES THAT INVOLVE MAKING THE CAFA ARE CORRECT AND WE GET THE ACCURATE NUMBERS TO REFER TO THE PUBLIC.

>> IS THAT WHEN A COMPANY DOES A FINANCIAL AUDIT, THAT'S WHAT THEY'RE DOING?

>> YES. THEY ARE TYPICALLY LOOKING AT MAKING SURE THAT THE [INAUDIBLE], EXCUSE ME, IS A MATERIALLY CORRECT FOR PRESENTATION TO THE PUBLIC.

>> CORRECT. NOW, CORRECT ME IF I'M WRONG, I DON'T THINK THOUGH, THAT FINANCIAL AUDIT GIVES WHAT SOME OF THE COUNCIL MEMBERS ARE WANTING TO SEE.

>> IT DOES.

>> BUT I CAN TELL YOU.

>> THAT'S ALL YOU WANT, JOHN?

>> THAT YOU ARE REALLY NOT LOOKING AT THAT CORRECTLY.

>> HE DOES NOT.

>> HE DOES.

>> AN UNDERSTANDING, IF YOU LOOK AND ASK THE PORT TO SEND IT TO YOU OR FIND IT FROM THEIR WEBSITE OR HOWEVER YOU WANT TO DO IT, WHEN THAT LETTER WENT, ALL THEIR FINANCIALS, THEIR AUDITS, AND EVERYTHING WERE LOOKED AT BY THE PEOPLE WHO AUDIT THE AUDITORS.

THERE WERE NO FINDINGS FOUND [OVERLAPPING] THE POTENTIAL.

>> THAT'S A PEER REVIEW.

>> THAT'S A SIMPLIFICATION.

>> IT IS BUT IT ISN'T.

>> IT IS A SIMPLIFICATION.

>> IF YOU EVER WENT THROUGH ONE.

>> ONE OF THE THINGS THAT WE HAVE LISTED IN THAT LIST OF REQUIREMENTS WAS AN ORDER TRAVEL EXPENSES AND TRAVEL PROCEDURES.

SOMEONE DOING A CAFA AUDIT IS NOT GOING TO BE DOING THAT.

>> REALLY, THE WHOLE TRAVEL THING.

>> TO ME, IT SEEMS SMALL.

>> TO ME IT'S A MINUTE AUDIT.

>> [OVERLAPPING] BUT I'M JUST USING AS AN EXAMPLE OF AUDITING YOUR ANNUAL FINANCIAL STATEMENT ISN'T GOING TO DIG INTO THAT.

>> THAT'S FINE.].

>> YOU ASKED, WELL, I'M PROBABLY OKAY WITH THAT TOO.

BUT YOU ASKED ME, YOU SAID YOU SEE IT FROM PORT BUT YOU DON'T SEE IT FOR THE PARK BOARD.

OFF TOP MY HEAD, I COULD GIVE YOU A COUPLE OF EXAMPLES OF PROCEDURES AND CONTROLS THAT I THINK YOU'RE LACKING AT THE PARK BOARD THAT I THINK WE NEED TO HAVE THAT CONVERSATION WITH THEM.

>> NO, I'M NOT SUGGESTING THAT GLENN IS NOT CONFIDENT AND CAPABLE OF DOING THAT, BUT IT WORKS THE SAME IN BOTH ORGANIZATIONS.

IF WHAT YOU WANT TO SEE IS AN AUDIT OF THEIR FINANCIAL STATEMENTS, WHAT ARE WE TALKING ABOUT? BECAUSE IT LOOKS TO ME LIKE FOUR OF US DOES THAT FOR THEM NOW.

>> THAT IS THEIR AUDITOR.

>> NO, IT'S AN EXTERNAL AUDITOR.

>> THAT THEY HIRE, IT IS THEIR AUDITOR THAT THEY HIRE.

>> THERE'S ALL KINDS OF CRAZY STUFF OUT THERE IN THE PUBLIC.

I WANT US TO HIRE AN AUDITOR TO VERIFY THE FINDINGS.

>> THAT SOUNDS GOOD.

>> EXTERNAL, UNBIASED.

>> EXTERNAL, UNBIASED, I DO NOT WANT GLENN INVOLVED IN THAT, PERSONALLY, I DON'T.

>> THE ONLY THING THAT I ASK GLENN TO BE INVOLVED IN IS IF THAT AUDITOR NEEDS A RESOURCE, HE CAN GO TO GLENN, THEY CAN GO TO GLENN, HE OR SHE.

>> THIS CONVERSATION STARTED ASKING ABOUT THE PROCUREMENT PROCESS.

I DON'T THINK WE FINISHED THAT REALLY.

WE PUT DOWN ANOTHER ROAD.

TELL ME HOW THE PROCUREMENT PROCESS WORKS, WHAT DEPARTMENTS THAT GOES THROUGH.

WHO'S INVOLVED IN THAT? THEN I WOULD ALSO LIKE TO KNOW OUR EXTERNAL AUDITOR IS WHITLEY PENN?

[04:25:05]

>> CAN WE CONTRACT WITH WHITLEY PENN TO DO THIS AUDIT? WE ALREADY HAVE THEM HIRED IN CONTRACTING.

>> WE WOULD HAVE TO LOOK AT THE SCOPE OF THEIR AGREEMENT AND WHETHER IT EXCEEDS THE [OVERLAPPING] 25% THRESHOLD.

>> POSSIBLY IF THAT WOULD SPEED UP THE PROCESS BY USING THEM.

>> THAT COULD POSSIBLY BE AN ALTERNATIVE. WE WOULD LOOK AT THAT.

>> [OVERLAPPING] LET HIM ANSWER MY QUESTION. UNLESS YOU HAVE SOMETHING.

>> NO, I WANT TO BE CLEAR BECAUSE THIS WILL BE A MOTION THAT WILL BE COMING UP HERE TODAY.

>> POINT OF PROCEDURE. WHAT HE MEANS BY THE 25% IS IF WHAT WE'RE ASKING HIM TO DO AN ADDITION TO WHAT WE ALREADY AGREED EXCEEDS 25% OF WHAT WE'RE PAYING THEM, THEN WE ARE REQUIRED TO GO OUT FOR AN RPA [OVERLAPPING].

I JUST WANT THE PUBLIC TO UNDERSTAND THAT THAT'S WHAT YOU'RE SAYING.

>> BUT I WANT TO BE CLEAR, JOHN SO THAT WE MAKE SURE THAT YOUR THOUGHTS ARE HONORED HERE.

YOU WOULD LIKE TO HAVE A FINANCIAL AUDIT OF THE PORT OF GALVESTON BY AN OUTSIDE AUDITING FIRM?

>> CAN I ASK A QUESTION ABOUT THAT LAST QUESTION, EXCEEDING THAT 25%? IF WE'RE NOT PAYING THEM AND SUPPORT IS PAYING THEM [OVERLAPPING]

>> THAT'S DONE.

>> CONTRACTS WITH US.

>> WE'RE PAYING THEM.

>> [OVERLAPPING] WOULD BE REIMBURSED FOR IT.

>> I WOULD SUSPECT SOMETHING THAT WOULD SHOW UP IN OUR AUDIT IF WE DID THAT, SO WE WANT TO MAKE SURE WE DO ALL RIGHT.

>> WHEN WE COME TO THAT ITEM ON THE AGENDA, WE CAN JUST MAKE THE MOTION THAT WE MOVE THAT A FINANCIAL AUDIT BE PERFORMED BY AN OUTSIDE AUDITING FIRM FOR THE PORT OF GALVESTON.

>> [OVERLAPPING] WE'LL TASK OUR PURCHASING DEPARTMENT TO LOOK AT WHETHER WE CAN USE WHITLEY PENN OR WHETHER WE HAVE TO BID IT OUT.

>> SOUNDS GOOD.

>> CLEAR FROM A STAFF PERSPECTIVE THOUGH.

HISTORICALLY WHEN WE HAVE THESE TYPE OF ISSUES COME UP, WE USE GLENN AS A RESOURCE FOR THIS.

ARE YOU ASKING THAT GLENN NOT BE PART OF THIS PROCESS?

>> WE NEVER SAID THAT.

>> I AM.

>> YOU'RE TALKING ABOUT GLENN'S AUDIT PLAN IS THE TOPIC HERE.

>> YES, IT IS.

>> WELL, BUT IT FLOWS INTO [OVERLAPPING].

>> NO FUN.

>> I KNOW. [LAUGHTER].

>> EXTERNAL AUDITORS.

>> YES, SIR, YOU COULD.

>> I HAVE A QUESTION.

I THINK WE WENT TO NEW YORK.

WE'VE GONE TO NEW YORK AND COME BACK BECAUSE I THOUGHT ORIGINALLY THAT'S WHAT IT WAS GOING TO BE, WASN'T EXTERNAL BY AN OUTSIDE AUDITOR.

THAT WAS DETERMINED AT THAT BEFORE.

I NEED CLARIFICATION.

I HEARD MARIE SPEAK OF A LETTER WHERE SOME THINGS WERE REFERENCED FOR GLENN, AND I NEED YOU TO GO BACK AND EXPLAIN THAT TO ME.

>> THERE WAS A LETTER THAT WAS SENT BY THE [INAUDIBLE] TO THE TEXAS STATE BOARD OF I CAN'T PRONOUNCE THAT AS NOW, SO IT'S ENRON HAPPENED AUTOMATICALLY TRIGGERS EVERY VIEW OF ALL THE FINANCIAL AUDITS.

THAT'S CALLED A AQR.

MY HUSBAND COULD EXPLAIN THIS BETTER THAN I.

THEY GO IN AND THEY REVIEW IT.

>> IT'S STATE OVERSIGHT.

>> I JUST NEEDED THE CONNECTION OF GLENN.

I NEED CLARIFICATION THERE.

>> I THINK GLENN HAS FALLEN SUBJECT TO SEEING THE NOTES THAT WERE GIVEN THAT WE WERE ALL SENT AT THE LAST MEETING THAT WERE PROVIDED TO COUNCIL [INAUDIBLE] BOUVIER.

I THINK GLENN HAS FALLEN UNDER OUTSIDE [INAUDIBLE], AND I HAVE LOST CONFIDENCE IN HIM.

>> ARE YOU SAYING THAT I HAVE THAT LETTER BEFORE EVERYBODY ELSE?

>> YOU DID.

>> I GOT THAT LETTER FROM THE WORST BOARD.

>> [OVERLAPPING] NO. I THINK YOU'RE TALKING ABOUT THE NOTES FROM GLENN THAT HE GAVE YOU.

>> [OVERLAPPING] THAT WAS OUT OF MY WORKING PAPERS, WHICH IS AVAILABLE TO ALL COUNCILMEN AT ALL TIMES.

COUNCILMAN BOUVIER CAME TO MY OFFICE AND ASKED FOR IT, AND I GAVE IT TO HIM.

>> ARE THOSE NOTES HAVE A CONNECTION TO THE PREVIOUS AUDITS THAT YOU DID, OR THE [INAUDIBLE] BOARD?

>> 2019, I DID AN AUDIT.

THOSE NOTES RELATE BACK TO THAT.

I HAD NO IDEA THIS WAS GOING TO HAPPEN FOUR YEARS LATER.

THOSE WERE NOTES PART OF THAT AUDIT BACK THEN, I SAID THAT THE [INAUDIBLE] BOARD HAD A FEMALE LIABILITY OF TWO MILLION DOLLARS.

>> BUT IT ISN'T REFLECTED IN YOUR AUDIT.

>> NO, IT IS IN MY AUDIT.

>> ALL THE AUDITS I REVIEWED THEM.

>> IT'S IN THERE. I SAY THAT THE PORT HAS A TWO MILLION-DOLLAR LIABILITY OF YOU BETWEEN 800,000-1,000,000.

ALSO IN THAT IT WAS AGREED UPON BY CLIFTON MAYBERRY THE [INAUDIBLE] AGENCY PERSON WHO LATER CHANGED WHAT HE WAS SAYING.

HE SAID NO, HE DIDN'T THINK SO,

[04:30:01]

BUT THERE'S PEOPLE IN THE MEETING THAT SAID YES, CLIFTON AGREED WITH ME, AND NOW HE DISAGREES WITH ME ONCE HE GOT THE CONTRACT WITH THE PORT, AND HE REFUSED TO TAKE MY CALLS.

>> I'VE BEEN LISTENING TO THE IMPEACHMENT TRIAL HEARSAY.

>> WELL, IT'S NOT HEARSAY. MAYBE I JUST BETTER [INAUDIBLE].

>> WHERE WE ARE, WE'VE HAD THE CITY AUDITOR'S ANNUAL PLAN.

WE ALL HAVE A MOTION ON THAT, LUCY?

>> I'M NOT DONE.

>> EXCUSE ME.

>> THAT'S A WHOLE SUBSET OF THIS.

I'VE BEEN TRYING TO TALK ABOUT, AND MARIE GRABBED THE CONCH AND OFF SHE WENT WITH HER.

>> GO RIGHT AHEAD, DAVID.

>> MR. MAXWELL?

>> RE-ENGAGE YOUR PLEASE.

>> SEVERAL OF THESE ITEMS IN HERE ARE COMPLIANCE MANAGEMENT SYSTEM, LIKE TESTING, WORK ORDER AUDIT FOR PROCEDURES AND POLICIES.

I DON'T EVEN KNOW WHAT VIEW WORKS REVENUE-GENERATING IS, TESTING PHASE FOR STORM WATER DISCHARGES AUDIT.

THIS IS THE AUDITOR'S OFFICE AUDITING YOUR OFFICE. I'M I RIGHT?

>>I BELIEVE SO. YES.

>> YOU BELIEVE SO?

>> I'M TRYING TO UNDERSTAND YOU. NOW I'M WITH EVERYBODY ELSE.

I DON'T UNDERSTAND YOUR QUESTION. [LAUGHTER].

>> [LAUGHTER] THESE ARE AREAS THAT GLENN WILL LOOK INTO FOR COMPLIANCE REASONS.

>> WHAT DO YOU MEAN FOR COMPLIANCE REASONS?

>> I ASSUME THAT GLENN IS GOING TO BE TESTING AND LOOKING BECAUSE HE SAYS THE SELLER FOR REVENUE GENERATION, GLAD THAT YOU'RE LOOKING AT REVENUE GENERATION SIDE OF THAT.

>> IT'S THE FINANCIAL SIDE OF THE RIB.

THAT WOULD BE THINGS THAT ARE IN A SELLER.

IF WE START ASSESSING A FEE FOR EXTRA BAGS NEXT TO THE TRASH CAN, GLENN, WE'LL BE LOOKING AT THE PROCESSES OF HOW THAT'S ASSESSED AND HOW IT'S COLLECTED AND THOSE TYPE THINGS.

THAT'S THE WAY I UNDERSTAND IT.

>> NOW THE STORM WATER RUNOFF, I'M NOT SURE ABOUT THAT.

>> WELL, THERE'S TESTING FOR MUNICIPAL.

COURT AUDIT, I UNDERSTAND THAT ONE, PAYMENT FUNDS, THAT KIND OF THING.

THAT'S SOMETHING I THINK YOUR OFFICES WOULD NORMALLY GET INTO.

>> YOUR SIDE OF THE SHOP.

>> IT'S MY SIDE. GLENN'S LOOKING AT THE FINANCIAL HANDLING OF CASH IN THESE AREAS IS WHAT HE'S LOOKING AT, ASSESSMENT OF FEES.

>> ON THE TRASHCAN AND IF I MAY, WE HAVE A SOFTWARE THAT NOW DOES THAT, BUT WE'RE GOING TO AUDIT THE SOFTWARE.

>> NO. THERE'S JUST OUR WATER BILLS OR ANYTHING ELSE, WE HAVE SOFTWARE THAT DOES THAT AS WELL.

IT'S JUST CHECKING THE CACHE CONTROLS, CHECKING TO SEE THAT EVERYTHING IS DONE ACCORDINGLY SO THERE'S NO CHANCE FOR ANY TYPE OF ERROR.

I'M STRUGGLING FOR THE WORD HERE.

NO MANIPULATION OF THE DATA THAT COULD CAUSE THEFT. YES. ABUSE.

>> THANK YOU, MAYOR. THAT'S WHAT I WANTED TO KNOW.

>> THANK YOU, DAVID. I APPRECIATE IT.

>> MAKE SURE WE'RE NOT HACKED.

>> COUNSELOR, ARE WE READY TO MOVE ALONG WITH OUR [INAUDIBLE]?

>> OH, YES. [LAUGHTER]

>> LET'S GO TO ITEM 8F, PLEASE.

[8.F. Discussion Regarding Trustee Approved FY 2024 Park Board Budget As Submitted For Council Review And Approval (M. Loftin/C. Ludanyi - 20 Min)]

>> 8F, DISCUSSION REGARDING TRUSTEE APPROVED FY2024 PART BOARD BUDGET AS SUBMITTED FOR COUNSEL REVIEW AND APPROVAL.

>> WE'RE MOVING TO THE EASIER TOPICS.

>> ANYBODY WANTS A WATER?

>> NO, THANKS. DAVID, [OVERLAPPING] WATER?

>> SHEILA, DID YOU WANT TO COME FORWARD ON THAT? SHE LIVED BEFORE YOU.

SAY SOME THINGS, I'D LIKE TO MAKE AN ANNOUNCEMENT TO COUNCIL, BUT I WANT TO MAKE SURE THAT WE HAVE TWO COUNCIL MEMBERS HERE.

[NOISE].

>> GOOD.

>> WE HANG IN THERE, MS. LEWIS, MEMBERS THAT ARE HERE, I WANT TO MAKE SURE THAT THEY HEAR THIS.

>> I DIDN'T GET ANY PICTURES IN NEW YORK WHEN WE WENT THERE [LAUGHTER].

>> THAT'S WHAT WE SAY, WHAT WE'RE GOING TO DO EXTRA HOBBY [LAUGHTER].

>> SHE LIVES, SHE HAD ANALOGY.

>> I'M TRYING TO GET [LAUGHTER].

>> FLORIDA PLUG.

[NOISE] 41%.

>> I THINK I CAN GO TO FILE [OVERLAPPING].

>> ANYONE ELSE? [LAUGHTER].

>> I'M GOOD.

>> YOU GOT TO BE DRY UP ALL THAT TALK.

>> LET ME MAKE A COMMENT BEFORE WE START

[04:35:01]

THIS SUBJECT HERE AND JUST TO BRING COUNCIL UP TO DATE ON WHERE WE ARE ON DEPART BOARD'S BUDGET.

THERE HAD BEEN MANY MEETINGS GOING ON WITH THE COURT BOARD AND THE CITY.

LOT OF THESE ARE BEING LED BY OUR LIAISON COUNCIL MEMBER UVA AND SOME OF THEM HAVE BEEN INITIATED BY OUR STAFF AND BY CITY AND BY PART BOARD STAFF.

IN MY MIND, WE HAVE TWO ISSUES, OR HERE ARE TWO TOPICS WHEN IT COMES TO THE BUDGET.

ONE IS THE STRUCTURE AND THE FORMAT FOR ACCOUNTING OF THE BUDGET THAT IS IN THE CITY'S ABILITY TO UNDERSTAND THAT AND TO WORK AND TO FORM A RELATIONSHIP WITH THE PARK BOARD ON THEIR BUDGET.

THE OTHER IS CERTAIN ITEMS THAT ARE BUDGETED IN THERE THAT REALLY FALL UNDER COUNCILS PURVIEW, THESE ARE NOT STAFF ITEMS. THE PART BOARD HAS BEEN WORKING VERY DILIGENTLY RECENTLY WITH THE CITY AND WE HAD A MEETING YESTERDAY WHERE THE FORMER ISSUES WILL BE CONTINUED TO BE ADDRESSED AND HOPEFULLY WILL BE HANDLED AND COMPLETELY CORRECTED BY THE TIME THAT WE HAVE OUR SEPTEMBER 21ST MEETING WHERE WE WILL APPROVE THIS BUDGET AT THAT TIME.

THE FORMAT CHANGES AND HOW THAT WILL BE HANDLED IN SOME OF THE ACCOUNTING PRINCIPLES THAT WILL BE DISCUSSED IN THIS NEXT WEEK BY THE TWO STAFFS MAY CHANGE THEIR BUDGET A LITTLE BIT.

IT WOULD BE IN MY FEELING IN OUR BEST INTERESTS TO LET THEM [NOISE] WORK THROUGH THESE ISSUES, GET ALL OF THESE DETAILS WORKED OUT, AND BRING BACK TO US THAN A BUDGET THAT HOPEFULLY WE'LL MEET STAMPS APPROVAL AS FAR AS FORMATTING PURPOSES, AND THEN WOULD ALLOW THE COUNCIL TO SEE EXACTLY WHAT WOULD FALL UNDER OUR PURVIEW THAT WE MAY OR MAY NOT WANT TO ADDRESS.

I WANT TO GIVE COUNSEL THAT UPDATE ON WHERE WE ARE AT THIS POINT, SAYING THAT, SHEILA.

>> AS COUNCIL KNOWS, ONE OF THE THINGS I'VE BEEN DOING OVER THE LAST MONTH IS REVIEWING THE BUDGET, AND WE HAVE HAD SOME REALLY GOOD MEETINGS WITH SEVERAL COUNCIL MEMBERS AS WELL AS INCLUSIVE OF THE PARK BOARD.

I BELIEVE WE'RE WORKING THROUGH THE ISSUES, THE QUESTIONS RELATED TO HOW THE BUDGET PRESENTS.

I THINK HEADING INTO NEXT WEEK, WE WILL HAVE SOME RECOMMENDATIONS BOTH REGARDING THE HOT REIMBURSEMENT AND HOW THAT PLAYS INTO THEIR BUDGET, AND ALSO THE BUDGET AS A WHOLE.

I BELIEVE COUNCIL WAS PROVIDED WITH A COPY OF THAT BUDGET AS A PART OF THIS AGENDA ITEM, AND I'M HAPPY TO ANSWER ANY QUESTIONS.

BUT UNTIL NEXT WEEK'S AGENDA, I DON'T BELIEVE WE WANT TO MAKE ANY RECOMMENDATIONS UNTIL WE FURTHER DISCUSS WITH THE PARK BOARD.

>> VERY GOOD. ANY QUESTIONS ON THIS COUNCIL?

>> GOING THROUGH THESE THINGS, IT'S ABOUT AS EASY AS BAPTIZED AND A HOUSE CAT.

GIVE US SOME TIME AND WE'LL GET IT DONE.

>> I DON'T KNOW IF YOU WILL.

>> WE HAVE BEEN SO FOCUSED [LAUGHTER] MAYBE.

WE'VE BEEN SO FOCUSED ON THE FORMAT AND THE PRESENTATION OF THIS AND I UNDERSTAND THAT'S PROBLEMATIC BECAUSE I LIKE SEVERAL PEOPLE WAS NOT ABLE TO UNDERSTAND SOME OF THE THINGS WERE BEING PRESENTED.

I HOPE THE STAFF, THIS IS BEING SORTED OUT.

I'VE MET WITH ONE POINT OR ANOTHER, VIRTUALLY EVERYBODY ON THIS TOPIC.

BUT THAT'S SEPARATE FROM WHAT'S IN THE BUDGET.

WHAT'S BEING BUDGETED, WHAT'S BEING EXPENDED.

THE GROWTH OF THE PART BOARD, THE GROWTH IN THEIR BUDGET, AND THE IMPACT IT HAS ON HOTEL TAX AND THEIR OPERATIONS.

LET'S NOT SUGGEST THAT WE'RE NOT WE DON'T HAVE THAT DISCUSSION YET TO COME.

WE DON'T HAVE TO HAVE IT TODAY, BUT WE'RE GETTING PRETTY SHORT ON TIME HERE.

>> THEY WON'T INHABIT TODAY.

>> WHAT?

>> BECAUSE OUR NEXT VIDEO IS THE 21ST.

WHEN DOES HER BUDGET HAVE TO BE APPROVED BY?

>> NEVER [LAUGHTER] NO, IT DOESN'T IT. [OVERLAPPING] WE'RE NOT.

>> YOU'RE TALKING ABOUT ME.

>> WE'RE NOT.

>> I TALK ABOUT YOU A LOT.

>> WHAT'S YOUR AGE AROUND ME? [LAUGHTER].

>> YOU HEAR THAT PHRASE AGAIN [LAUGHTER].

THEY'RE JUST POLICY IMPLICATIONS FOR WHAT'S IN THEIR BUDGET AND WHAT I THINK WE OUGHT TO BE DOING, AND WHAT THEY THINK WE OUGHT TO BE DOING, AND WHAT COUNCIL WANTS THEM TO DO, THAT THAT NEEDS TO BE DISCUSSED.

[04:40:01]

I THINK THIS IS GOING TO EXTEND IT INTO OCTOBER.

I CAN'T SEE US REVIEWING ALL OF THAT NEXT WEEK [NOISE].

THE AMOUNT OF MONEY THAT WE'RE ALLOCATING.

>> I HAVE QUESTIONS ABOUT THEIR BUDGET.

>> BUT WE'RE NOT PREPARED TO TALK ABOUT THAT TODAY, AND WITHOUT SHEILAS PRESENTATION AND I UNDERSTAND WHY WE'RE NOT DOING THAT TODAY.

BUT THAT LEAVES OPEN SOME QUESTIONS ABOUT THE DOLLARS AND CENTS OF THIS BUDGET, AND WHAT WE CAN DO AND I WOULD HOPE THAT COUNCIL WOULD ENTERTAIN THIS.

IS A Q124 ALLOCATION OF THAT BUDGET SO THAT WE CAN CONTINUE THESE CONVERSATIONS AS OPPOSED TO JUST RUBBER STAMPING A BUDGET, WHICH I DON'T THINK IS IN OUR BEST INTEREST.

THERE ARE PIECES OF IT THAT I'M GOING TO DRAW.

I'VE BEEN TALKING TO PEOPLE, I'VE BEEN TALKING TO THE TRUSTEES ABOUT IT.

BUT I THINK COUNCIL NEEDS TO REVIEW THESE THINGS AND I JUST DON'T THINK WE'RE GOING TO HAVE THE TIME OR THE INFORMATION TO DO THAT NEXT WEEK IF WE'RE NOT YET EVEN CONFIDENT IN WHAT THESE NUMBERS ARE GOING TO LOOK LIKE IN THE PRESENTATION IS ABOUT.

DO YOU UNDERSTAND WHAT I'M SAYING?

>> HUNDRED PERCENT.

>> OKAY, GOOD.

>> WE JUST LOOKED AT YOU HAD.

>> WHAT I WAS GOING TO SAY TO THAT IS THE INFORMATION IS THERE.

I THINK THAT THEY'RE WORKING WITH THE CITY TO TELL THE STORY OF HOW THE MONEY IS GOING TO BE SPENT, WHERE THE MONEY WAS BEFORE IN THIS BUDGET, AND SHOULD ANSWER HOPEFULLY, 90% OF YOUR QUESTIONS.

>> HERE'S WHY I DISAGREE WITH YOU.

IS THAT I BELIEVE YOU ARE CORRECT, THAT IT WILL ANSWER THE QUESTION WHAT THEY INTEND TO DO WITH IT? WHAT COUNCIL APPROVES IS A DIFFERENT THING.

WHAT COUNCIL WANTS TO SEE, MAYBE A DIFFERENT THING.

>> I THINK IF I'M A DOG, I'M A POINTER WHERE IT IS GOING TO POINT OUT WHAT WE SEE IN THE BUDGET, POLICY ISSUES, OPERATIONAL ISSUES.

THOSE ARE WHAT COUNCIL WANTS TO PARK BOARD TO DO AND NOT DO THAT AS A COUNCIL DECISION.

STAFF IS NOT, I'M NOT GOING TO SECOND GUESS WHAT KIMBERLY OR BRYSON OR ANYBODY OVER THERE IS DOING.

WE'RE JUST GOING TO POINT OUT WHAT WE SEE AND YOU GUYS CAN DO WITH IT WHAT YOU WILL.

>> THAT IS CORRECT. WE'LL LOOK AT THIS ON SEPTEMBER 21ST AGENDA.

HOPEFULLY, WE WILL HAVE THE ACCOUNTING ISSUES COMPLETELY WORKED OUT AND WE WILL HAVE POSSIBLY SOME CHANGES IN THEIR BUDGET AT THAT POINT.

>> DO YOU WANT TO THANK PARK BOARD FOR BEING HERE [LAUGHTER] [NOISE] TODAY FROM THE MORNING TILL NOW?

>> I DID RECEIVE A TEXT THAT JASON HARDCASTLE WAS BILLING US FOR ALL THESE HOURS.

>> BUT A GOOD THING, IT'S IN BITCOIN.

>> MAYOR.

>>FOR MAYOR EDIFICATION, I MEAN, WE, AS A COUNCIL, HAVE APPOINTED A BOARD OF TRUSTEES TO THE PARK BOARD.

PARK BOARD AND THEIR BOARD OF TRUSTEES HAVE WORKED COLLABORATIVELY OVER THE PAST THREE MONTHS OR SO ON THE DEVELOPMENT OF THE BUDGET.

YOU SAT IN ON THOSE. THEY'VE WORKED THROUGH AND SAID THIS IS THE DIRECTION THEY WANT TO GO.

NOW THEY'VE APPROVED IT UNANIMOUSLY.

NOW, IN ADDITION TO THE REPORTING THINGS THAT WE'RE GOING TO MAKE CLARIFICATIONS ON, I'M HEARING THAT THERE'S POSSIBLY SOME POLICY OR SOME DIRECTION.

>> WITHOUT A DOUBT.

>> THAT YOU HAVE A QUESTION.

HAVING SAID THAT, I WANT TO LOOK DOWN A LINE TO TRY TO GET US TO AN APPROVAL PROCESS AND WHAT THAT LOOKS LIKE.

WE'RE GOING TO BE ON THE 21ST, HEAR A BUNCH OF ISSUES.

GET CLARIFICATION ON THEM.

AGAIN, JUST AT THE CITY COUNCIL LEVEL, IT MIGHT BE PRUDENT TO ACTUALLY HAVE A JOINT MEETING WITH PARK BOARD OF TRUSTEES SO THAT WE UNDERSTAND WHAT THEIR OBJECTIVES ARE AS WELL. IT WOULD BE GOOD.

>> PRIOR TO APPROVAL OF THE BUDGET.

>> THAT'S FINE. PRIOR TO APPROVAL OF THE BUDGET, IT'D BE GOOD TO HAVE A JOINT MEETING WITH PARK BOARD OF TRUSTEES.

>> I'M HAPPY TO DO SO. IF PEOPLE KEEP SAYING TO ME, WELL, TRUSTEES REVIEWED THIS. TRUSTEES APPROVE THIS.

THE TRUSTEES SAT DOWN TO THAT TABLE, THE LAST MEETING, LAST WEEK OF JULY, AND THIS BUDGET WAS PRESENTED TO THE CITY, ESSENTIALLY A MONTH LATER.

>> [OVERLAPPING] WHAT DID THEY GET?

>> I'M NOT SURE HOW DEEP THEY WERE ABLE TO DIVE INTO THIS.

AS YOU RECALL, WE TALKED ABOUT MOVING THAT APPOINTMENT DATE UP IN THE SPRING TO GIVE THEM MORE TIME TO DO THIS.

>> I DO.

>> THAT DIDN'T HAPPEN. A FEW OF US GOT VOTED DOWN ON THAT.

BUT I'M JUST NOT SURE HOW DEEPER DIVE THEY'VE GOTTEN INTO IT BECAUSE AS SHEILA HAS PRESENTED SOME OF THESE ISSUES, THERE HAVE BEEN TRUSTEE IS GOING. OH, I SEE THAT NOW.

[OVERLAPPING] BUT THEY'RE ALSO POLICIES.

I'M OKAY WITH SITTING DOWN WITH THE TRUSTEES.

AS MATTER OF FACT, I HAVE SUGGESTED AND GOTTEN SOME PUSHBACK.

I DO THINK WE NEED TO SIT AT THE TABLE AND THEY NEED TO UNDERSTAND WHAT OUR PRIORITIES ARE.

[04:45:04]

I'M NOT READY TO DETAIL THEM TODAY, BUT I WILL BE WHEN WE HAVE GOOD NUMBERS AND HAVE A GOOD BUDGET TO LOOK AT.

YOU SAY THE NUMBERS ARE ALL IN THERE, LIKE IF IT WAS THAT SIMPLE, THEY'RE JUST GOING THERE.

JUST GO LOOK AT THAT NUMBER.

IT'S NOT. THAT'S BEEN COMPLAINT WITH.

>> YOUR WELCOME, DAVID.

>> NOT ENOUGH DETAIL.

>> ANY FURTHER OTHER COMMENTS ON THIS?

>> I DO HAVE ONE.

>> YES, SHARE IT.

>> I THINK IT TAKES US BACK TO THE FIRST SIT-DOWN MEETING WE HAD TOGETHER WITH THE PARK BOARD WHICH I THOUGHT WAS AWESOME.

I'M A PERSON OF COLLABORATION AND I THINK COMMUNICATION IS CRITICALLY IMPORTANT.

MAYBE FOR THE FUTURE BEFORE THE BUDGET, I KNOW YOU WANT TO PROVE SOME THINGS, BUT THAT COULD BE PART OF THAT TALKING PROCESS TO WHICH I KNOW YOU WANT IT TO HAPPEN EARLY, BUT I MEAN, WE JUST NEED TO MAKE SURE THAT THAT HAPPENS.

THAT DISCUSSION OF A BUDGET BEFORE THEY GET TO THIS POINT OF THAT IS WHAT WE ARE WANTING TO DO AS A COUNCIL.

>> UNFORTUNATELY, IT HAS TO BE DONE PRETTY QUICK.

[OVERLAPPING] BECAUSE OUR BUDGET PROCESSES DON'T COME OUT UNTIL THE JULY 1ST.

BY THAT TIME, PARK BOARD'S IN THEIR BUDGET PROCESS.

WE ARE IN OUR BUDGET PROCESS.

WE'VE HAD THE ADDITIONAL ISSUE OF THE PORT AND THEIR BONDS.

YOU RUN OUT OF BANDWIDTH PRETTY QUICK ON THESE THINGS.

>> I'M SUGGESTING FOR THE FUTURE.

>> I UNDERSTAND.

>> THE TRUSTEES BEFORE THE OTHER APPOINTED, WORK ON THAT BUDGET.

THEY HAVE A FINANCIAL COMMITTEE AND THEY WORK ON THAT BUDGET SO THAT AS SOON AS THE NEW PEOPLE COME ON, THE BUDGET, JUST NOW BEING DEVELOPED.

THIS BUDGET IS ACTUALLY BEEN SEEN BY 13 PEOPLE.

>> THAT'S WHERE THAT NUMBER COMES FROM.

WHEN CHAIRMAN HARDCASTLE SAID 13 PEOPLE THE OTHER DAY I'M LIKE, YOU KNOW THERE'S ONLY NINE ON THE BOARD.

[LAUGHTER] THAT'S WHERE YOU GOT THAT NUMBER.

THAT'S TRUE, BUT THERE ARE THINGS THAT ONLY NOW I'M SEEING IN THIS BUDGET, AND GOING, I DON'T THINK THAT'S COUNCIL'S INTENT.

I DON'T THINK THAT'S THE BEST INTERESTS OF THE CITY.

WE NEED TO TALK ABOUT THAT.

THAT'S WHAT I'M BEING TOLD THAT WE DON'T GET TO DO.

THAT'S WHY YOU HAD 13 PEOPLE LOOK AT THIS.

YOU SHOULD JUST SHUT UP AND VOTE FOR IT, AIN'T GOING TO HAPPEN.

>> I'M NOT GOING TO SAY THAT I'M GOING TO TELL YOU THAT.

YOU HAVE EVERY RIGHT TO LOOK AT IT AND GIVE YOUR POINT OF VIEW.

>> AND MY VOTE.

THIS IS THE BODY THAT APPROVES THAT BUDGET, NOT THE TRUSTEES.

>> ABSOLUTELY.

>> WE JUST NEED TO DO THAT IN TIME AND MANNER.

>> BUT WHAT DO YOU CALL TIMELY? [OVERLAPPING] GIVEN THE TIMELINE THAT WE'RE [OVERLAPPING]

>> LET ME SAY THIS.

THIS YEAR WE'RE OPERATING UNDER NEW ORDINANCE, WERE OPERATING UNDER NEW HOT AGREEMENT, WE'VE GOT A NEW CFO WHO'S DOING A VERY GOOD JOB FOR US.

I BELIEVE THAT WE WILL HAVE A BETTER PROCESS ON THIS NEXT YEAR THAN WHAT WE'VE DONE.

WE'VE HAD A CHANGE IN LEADERSHIP AT THE PARK BOARD, AT THE COO LEVEL.

SHE'S TRYING TO FIND HER WAY AROUND OVER THERE TOO.

WE'LL GET THERE, GUYS.

[OVERLAPPING] IT'S WORTHY AND YOUR TRUSTEE LEVEL.

I MEAN, WE HAVE A WHOLE LOT CHANGES HERE GUYS.

>> [OVERLAPPING] PARK BOARD CFO'S STILL TRYING TO DIG OUT FROM UNDERWATER BIT ABOUT 30 YEARS.

>> WELL, THAT'S A 0.2.

I THINK THAT THAT GIVEN EVERYTHING THAT WE'RE CHUGGING ALONG HERE AND I THINK BY NEXT YEAR WE'LL HAVE A MUCH BETTER PROCESS.

>> THAT'S GREAT. THAT DOES NOT DISPOSE ME TO SAY, WHATEVER YOU THINK THIS YEAR.

>> NO, I UNDERSTAND.

>> WHEN YOU'RE OUT OF OFFICE, WE'LL TALK ABOUT IT SERIOUSLY.

>> VERY GOOD. WE WILL HAVE THIS ON OUR AGENDA FOR MAY 21ST.

THANK YOU SHEILA. NICE TO SEE YOU.

>> I COULD USE A JANITOR.

>> THANK YOU, SHEILA.

[8.G. Discussion Of Alcohol Sales At Dellanera RV Park ( Bouvier/Brown - 15 Min )]

[BACKGROUND]

>> ALL RIGHT, MIKE. [LAUGHTER]

>> NEXT, WE HAVE THE ALCOHOL SALES DELLANERA.

I CAN DO IT.

>> NOT PREPARED RIGHT NOW.

>> THAT'S A GOOD WAY TO PUT IT [LAUGHTER]

>> CAN I MAKE COMMENT ABOUT THIS?

>> OH, RIGHT AHEAD.

>> TOP OF THE NEXT ONE.

>> SORRY, I GOT VERY TOP.

>> [OVERLAPPING] THESE END ACTION ITEM ALSO.

>> THE CONCESSIONS AT DELLANERA HAVE BEEN WORKING VERY WELL.

THEY'VE GOT A REALLY GOOD OPERATION OUT THERE IF YOU'VE EVER BEEN.

IF YOU HAVEN'T BEEN OUT THERE, IT'S WORTH GOING OUT TO SEE HOW THE PARK RUNS, WHAT THE STORE LOOKS LIKE.

I THINK THE ADDITIONAL BEER AND WINE SALES THROUGH THAT CONCESSIONAIRE PACKAGE SALES.

I THINK IT'S A GREAT IDEA, BECAUSE THERE ARE A NUMBER OF ANY NUMBER OF RESIDENTS.

I CALL THEM RESIDENTS, BUT THERE ARE PEOPLE THAT COME WITH THAT PARK EVERY YEAR.

I MEAN, THERE'S A LOT OF PEOPLE THAT DEPEND ON THAT PARK.

AT FIRST I HAD THIS QUESTION ABOUT WHETHER WE SHOULD EVEN HAVE A PARK AT BEING IN COMPETITION, BUT FIVE MILES DOWN THE ROAD,

[04:50:01]

THE STATE OF TEXAS RUNS ONE.

NOW, I DON'T KNOW WHO THEY RUN IT OR A VENDOR RUNS IT, BUT IT'S NOT ALL JUST PRIVATE OPERATION WHEN IT COMES TO BEACH FRONT PARKS.

I THINK THIS IS A GREAT RESOURCE AND I THINK IT WOULD ENHANCE THE EXPERIENCE FOR PEOPLE STAYING THERE IF THEY COULD BUY BEER AND WINE.

>> I DON'T LIKE THE IDEA OF A BAR.

A NEIGHBORHOOD BAR IN A CITY RUN RV PARK.

>> EVEN IF IT'S RUN BY A THIRD PARTY?

>> EVEN. HERE'S THE REASONS, AND I'M CERTAINLY OPEN TO OTHER OPINIONS ON THIS, BUT IT SEEMS TO ME THAT THE BEER AND WINE SALES ACROSS THE COUNTER AT THE STORE, THAT'S DESIGNED PRIMARILY TO SERVE THE PEOPLE WHO WERE STAYING THERE, THE VISITORS AND THEIR RVS THAT ARE STAYING THERE.

IF YOU OPEN A BAR, AND BECAUSE YOU CAN GO GET YOUR SIX PACK OF BEER, GO SIT OUT ON A VERY NICE BALCONY AND LOOK AT THE OCEAN AND DRINK YOUR BEER.

THAT'S PRETTY MUCH THE SAME THING.

I DON'T THINK ANY OF US ARE INTERESTED IN GOING DOWN HARD LIQUOR SALES PATHWAY.

I MEAN, I DON'T EVEN THINK YOU'RE PROPOSING THAT.

>> HERE, ONE IS THE SAME AS MIXED DRINK WITH VODKA AND INTO [INAUDIBLE].

>> THAT'S FAIR.

>> [OVERLAPPING] HAVE YOU EVER HAD A WINE MARGARITA? I WOULD BEG TO DIFFER [LAUGHTER]

>> [OVERLAPPING] THAT'S A TASTY SIMPLY.

>> THE PERSON DIGGING INTO OUR BAR RECIPES, DO YOU HAVE A LIST? NOW, I TAKE THAT POINT.

BUT YOU CERTAINLY GET HAMMERED ON ANYTHING, BUT IF YOU HAVE A BAR, THEN I THINK YOU'RE INVITING THE PUBLIC TO COME VISIT YOUR BAR.

I MEAN, IT JUST SEEMS LIKE A DIFFERENT LEVEL BOTH OF LIABILITY.

>> [OVERLAPPING] THIS LEVEL OF SERVICE, ARE WE ACTUALLY TALKING ABOUT MAKING CAPITAL IMPROVEMENTS TO ACTUALLY HAVE A BAR-TENDING STAMP? BECAUSE I HEARD THE COMMENT EARLIER ABOUT, THEY DO HAVE A LOVELY SECOND STORY SITTING AREA, BUT I DIDN'T UNDERSTAND THAT PART OF THIS ALLOWANCE OR APPROVAL PROCESS WAS FOR INSTALLATION OF BAR EQUIPMENT.

>> IT HAS BEEN DISCUSSED.

I THINK THAT'S PART OF WHAT WE NEED TO DECIDE WHAT WE WANT TO SEE THERE, BECAUSE PARK BOARD STAFF HAS DISCUSSED THIS.

>> WELL, WHAT YOU'RE DOING TODAY IS APPROVING THE FACT THAT ALCOHOL CAN BE SOLD AT THE PARK UNDER THE TERMS OF A CONCESSION AGREEMENT APPROVED BY CITY COUNCIL AND THE CITY MANAGER.

THE VEHICLE YOU USE TO SELL THAT, YOU CAN HAVE FURTHER DISCUSSIONS ON THAT WHETHER YOU WANT TO OPEN UP.

>> IT'S A GOOD THOUGHT.

>> CATEGORY, DRIVE THROUGH LIKE THEY HAVE IN LOUISIANA?

>> THOSE ARE COOL.

>> IS THAT WHAT YOU'RE DOING TODAY THOUGH?

>> THANK YOU, DON. I APPRECIATE IT.

>> BUT DON'T YOU THINK OUR DECISION TODAY SHOULD CONTEMPLATE WHY WE WANT TO DO THIS, WHY WE WANT TO SAY, YES?

>> I THINK THAT'S ALWAYS THE TOUCHSTONE OF ANY DECISION.

>> I REALIZED WE'RE NOT DECIDING WHETHER THERE'S GOING TO BE A BAR THERE TODAY.

>> WE'RE DECIDING WHETHER THEY CAN SELL ALCOHOL THERE.

BUT PACKAGED, BUT DESPITE COVID AND THE CHANGE IN THE RULES ON STUFF, PACKAGE SALES AND OVER THE BAR DRINKS ARE A DIFFERENT THING. DIFFERENT ANIMAL.

>> ABSOLUTELY.

>> JOHN, YOU HAD A COMMENT AND THEN DAVID.

>> IT'S MY COMMENT IS JUST TRYING TO GET SOME FURTHER UNDERSTANDING OF PEOPLE'S VIEWS ON THIS.

AS A QUESTION, DAVID, YOU'RE OKAY WITH PACKAGE SALE?

>> YES. YOU SAID THAT RIGHT.

>> BEER AND WINE?

>> WHY NOT PUSH THAT ENVELOPE FURTHER WITH HARD LIQUOR SALES THERE? WHAT DO YOU SEE DIFFERENT IN THAT? DO YOU THINK IT'S GOING TO BE THE HOTSPOT AND EVERYBODY IS GOING TO DRIVE TO THAT PLACE AND NOW IT'S LIKE A WOODIES?

>> YEAH, KIND OF. THAT IS ONE OF MY FEARS.

>> I THINK THAT'S A GOOD THING TO LOOK AT AND AVOID THAT.

I DON'T THINK THAT'S WHAT THE PARK BOARD IS SCALING FOR. I WOULDN'T WANT TO SEE THAT.

>> BUT I DON'T THINK IT'S WHAT THEY'RE GOING FOR IT, BUT WHEN VINCE CAME AND TALKED TO US ABOUT THIS, WE'VE TALKED ABOUT BOTH PACKAGE SALES AND A BAR.

WE TALKED ABOUT BOTH THOSE THINGS.

I DON'T THINK I'M DREAMING.

>> NO. I REMEMBER HIM MENTIONING IT.

MAYOR, SINCE WE HAVE REPRESENTATIVES OF THE PARK BOARD HERE, MIGHT WE ASK THEM FOR CLARIFICATION ABOUT OVERALL INTENT JUST SO THAT WE UNDERSTAND WHAT THEIR MASTER PLAN OR GOAL IS?

>> LET ME JUST FRAME THE QUESTION A LITTLE BIT BEFORE WE GET THAT. IT'S GOOD IDEA.

[04:55:06]

IN MY OPINION, I WOULDN'T WANT TO SEE IT COME TO THAT.

I'M THINKING THIS IS SOMETHING THAT EITHER BEACH GOERS THAT ARE ON THE BEACH IN FRONT WOULD COME AND BUY DRINKS THERE OR PATRONS THAT ARE STAYING THERE.

>> BY A DRINK OR BUY A SIX-PACK? ARE WE TALKING ABOUT OUR SERVICE?

>> OUR SERVICE.

>> YOU'RE TALKING ABOUT OUR SERVICE.

>> I DON'T KNOW THE TAV LAWS AND WHAT YOU CAN DO WITH THAT, WHERE YOU CAN GO WITH IT IF IT'S PACKAGED, IF IT'S NOT PACKAGED. THAT'S HOW I SEE IT.

I SEE IT AS BEING A LIQUOR, BEER, WINE, THAT YOU COULD GO BUY A DRINK, EITHER SIT THERE ON THE DECK, IF IT'S PACKAGED AND YOU COULD WALK OUT TO THE BEACH WITH IT.

THAT'S ALL I'M SEEING THIS, AND I DON'T HAVE A PROBLEM WITH THAT.

NOW, IF IT TURNS INTO A WE SITUATION WHERE YOU GOT EVERYBODY IN THE NEIGHBORHOOD DRIVING OVER THERE, THE PARKINGS AREN'T REALLY THERE TO DO THAT.

>> THEY CHARGE TO PARK.

I DON'T SEE THAT HAPPENING.

>> I'D BE INTERESTED TO HEAR WHAT MR. [INAUDIBLE] HAS TO SAY ABOUT THAT [OVERLAPPING].

>> MARIE, WHY DON'T YOU ASK YOUR QUESTION AND JASON COME ON UP OR WHOMEVER WOULD LIKE TO ANSWER THIS?

>> I PERSONALLY WOULD HAVE A PROBLEM WITH PACKAGE SALE.

>> AS OPPOSED TO A BAR?

>> YEAH. AS OPPOSED TO A BAR BECAUSE THAT CREATES A WHOLE OTHER PROBLEM WHERE WE ALREADY HAVE ISSUES ON THE BEACH AND YOU'RE NOW SELLING SIX PACKS, SO EVERYBODY GO INTO THAT BEACH SO THEY CAN GO AND THEN WE HAVE MORE CANS.

>> I HEAR THAT AND I UNDERSTAND THAT, BUT LET ME PRESENT IT THIS WAY.

WHEN TBC GOES INTO AN INVESTIGATION OF A DRUNK DRIVING ACCIDENT, I GUESS THEY PROBABLY DO GO BACK TO PACKAGE STORES AND ASK WHERE PEOPLE BOUGHT THE BEER.

BUT IF I GO IN AND BUY A SIX-PACK, I GO IN ABOUT FOUR SIX-PACKS.

I DON T KNOW IF THE PROPRIETOR OF THE PACKAGE STORE IS GOING TO SAY, THAT'S TOO MUCH, THAT'S TOO MUCH BEER.

WHEREAS SITTING AT A BAR, GETTING A SECOND DRINK, THIRD DRINK, FORTH DRINK OVER THE BAR, THAT DOES CREATE A LIABILITY FOR THE BAR OWNER AND OPERATOR.

>> I KNOW, BUT ALSO HAVING A PACKAGE STORE, WHEN YOU DO HAVE RESIDENTS IN THAT AREA, YOU HAVE THE HIGH-RISE ON ONE SIDE.

NOW ALL OF A SUDDEN WE HAVE A PACKAGE AND WE HAVE WHO'S GOING TO BE LOOKING, DOING THE IDS, WHATNOT, THAT CREATES A LIABILITY, AND ALL OF A SUDDEN, UNDER AGE PEOPLE.

>> SO YOU'RE OPPOSED TO SELLING LIQUOR THERE AT ALL?

>> I WOULD BE MORE COMFORTABLE WITH DRINKS THAT STAY ON THE PREMISE THAN I WOULD BE WITH TAKING IT OUT.

>> IS ALCOHOL ALLOWED ON THAT PARTICULAR BEACH?

>> WE WOULD BE CHANGING TO THAT.

>> NO. ARE WE PROHIBITING ALCOHOL ON THAT BEACH?

>> I DON'T KNOW. I KNOW THERE'S DIFFERENT BEACHES HAVE DIFFERENT RULES.

>> I'M PRETTY SURE WASTE IS INSTITUTED ON THE BEACH.

>> THE MOST LOOSELY ENFORCED RULE WE HAVE.

>> [BACKGROUND]?

>> NO, SALES.

>> BUT SOMEBODY COULD BRING A COOLER BEER ON THAT BEACH AND DRINK ALL THEY WANT.

>> LEGALLY, I THINK NO. BUT LET'S NOT.

>> I THINK THERE ARE SOME BEACHED THAT IT'S PROHIBITED TO DRINK ON THE BEACH, I CAN'T REMEMBER WHICH ONE.

>> STEWART BEACH, I DIDN'T KNOW THAT.

>> NO. I THINK IT'S THIS SIDE OF [INAUDIBLE]

>> ST. LOUIS. I DON'T KNOW.

I JUST ASKED THAT QUESTION.

>> I'M NOT CERTAIN OF THAT. I KNOW SOME ARE, SOME AREN'T, AND I CAN'T REMEMBER.

>> THE ONLY BEACH WHERE WE SELL ALCOHOL IS EASTERN BEACH. [BACKGROUND]

>> I'M SURE HE'S CHECKING IT.

>> AS DAN MENTIONED, REALLY WHAT'S BEFORE IS HOW WE SELL ALCOHOL, THAT COMES BACK TO US HERE.

BUT WE'RE JUST SAYING DO WE WANT ALCOHOL TO BE SO SOLD UNDER A CONCESSIONAIRES AGREEMENT? THAT'S WHAT'S ON THE AGENDA.

JASON, WHAT IS YOUR THOUGHTS ON THE PARK BOARDS THINKING ON THAT?

>> CAN I INTERRUPT? ARE TALKING ARE WE TALKING ABOUT A CONCESSIONARY AGREEMENT BECAUSE THE PARK BOARD RUNS THAT STORE?

>> WHAT'S THE TERM IN THE ORDINANCE THERE? IT'S UNDER SOMETHING ABOUT CONSENT.

IS IT A CONCESSIONARY OR SOMETHING IN THE ORDINANCE?

>> UNDER THE TERMS AND CONDITIONS OF CONCESSION AGREEMENT.

>> YES, CONCESSION.

>> APPROVED BY CITY COUNCIL AND THE CITY MANAGER.

>> GO RIGHT AHEAD, JASON.

>> SURE. THANK YOU, MR. MAYOR AND CITY COUNCIL, CITY STAFF. THANK YOU VERY MUCH.

I THINK WHAT WOULD SUM IT UP THE BEST IS THAT I'M HERE TO REPRESENT

[05:00:04]

THE TRUSTEES AND THE FEELING OF LOOKING AT ALCOHOL SALES AT DOLAN AREA WITH THREE DIFFERENT PRIORITIES.

PRIORITY 1 IS TO MAKE SURE THAT WE ARE REPRESENTING CITY COUNCIL'S WISHES OUT THERE.

PRIORITY 2 IS TO RESPOND TO MARKET FORCES, WHICH DO APPARENTLY WOULD LIKE TO SEE ALCOHOL SALES OUT THERE AS WELL, AND PRIORITY 3, THAT WE OFFER HIGH-QUALITY SERVICE.

OTHER THAN THAT, WE ARE HERE TO TAKE DIRECTION, WHATEVER IT IS.

IF YOU WENT TO RESTRICT THAT TO BEER AND WINE OR IF YOU WANT TO OPEN IT UP AND LET US ISSUE THE PROPER SERVICE PROCUREMENT PROCESSES WITH A THIRD PARTY, IT'S A COMPLETELY COUNCIL'S WILL.

>> YOU'VE PRETTY MUCH COVERED IT.

YOU'VE HEARD THE CONVERSATION AROUND IT.

WE'RE ALL OVER THE MAP ON THIS.

WHAT IS YOUR THINKING, TRUSTEES' THINKING, OR STAFF'S THINKING ON THIS? IS IT PACKAGED SALES, IS IT A BAR, IS IT ENGAGING A THIRD PARTY TO RUN A BAR? HOW WOULD YOU DO THIS?

>> I THINK THAT THE VARIETY OF OPINIONS ON THIS WITH THE TRUSTEES ARE PRETTY WELL REPRESENTED HERE WITH CITY COUNCIL.

[LAUGHTER] PERSONALLY, WHAT I WOULD LIKE TO SEE IS THAT, I DO BELIEVE THAT IT IS A GREAT LOCATION TO HAVE A COCKTAIL ON SITE.

AS SOMEONE WHO'S HAD COCKTAILS ON BEACHES, I'LL ADMIT IT.

[LAUGHTER] I THINK THAT THERE WOULD BE REVENUE GENERATED IN A DEMAND FOR BEING ABLE TO PURCHASE PACKAGED AND TAKE IT BACK TO YOUR RV AS WELL.

I DON'T BELIEVE THAT WE WOULD BE ATTRACTING PEOPLE OUTSIDE THAT IMMEDIATE VICINITY TO THIS FACILITY.

I THINK IT WOULD PRIMARILY BE THE PEOPLE AT THE BEACH AND FOR THE RV PARK AS WELL.

>> WHY DO YOU THINK THAT BECAUSE THAT'S NOT HOW YOU'D MARKET IT OR BECAUSE YOU CHARGED THE PARK?

>> BECAUSE YOU PROBABLY WON'T HAVE A SIGN UP THERE, THEN NOBODY WILL KNOW THAT THERE'S A BAR THERE.

>> THEY WILL.

>> I THINK IT'S AN INCONVENIENT PLACE TO GET TO, [LAUGHTER] UNLESS YOU'RE STAYING THERE OR WALKING DOWN THE BEACH OR SOMETHING.

IF WE NEEDED TO LIMIT THE ADVERTISING TO HELP PREVENT IT FROM BEING A BAR THAT IS ATTRACTING PEOPLE FROM ALL ACROSS THE ISLAND, WE COULD DO THAT.

>> I HADN'T THOUGHT ABOUT THAT, BUT IF YOU'RE GOING TO ADVERTISE IT, I'D RATHER YOU ADVERTISE IT ON SITE THERE.

>> YEAH, I AGREE.

>> I THINK THIS IS A GOOD PLACE TO USE IT AS A TESTING GROUND.

I WOULD SAY PUSH THE LIMITS.

GO OUT THERE AND PROVIDE SOME GREAT SERVICE.

I DON'T KNOW IF YOU DO THIS OR NOT, BUT EVEN IF YOU HAD SERVICE ON THE BEACH WHERE YOU PUT OUT CHAIRS OUT THERE, YOU PROVIDE HIGH-END SERVICE AND YOU SEE WHAT CLIENTELE YOU GET.

>> THERE, IT LOOKS LIKE THAT.

>> THEN IF IT WORKS, THAT'S GREAT.

IF IT'S NOT WORKING, AND MARIE GETS A BUNCH OF COMPLAINTS BECAUSE WE'LL GIVE OUT HER PHONE NUMBER.

>> THEY ALREADY HAVE IT.

>> WE CAN UNDERSTAND THE MARKET HERE ON THE ISLAND AND THEN WE WON'T DO THIS OTHER PLACES OR MAYBE WE WILL DO AT THESE OTHER PLACES.

THAT GOES INTO STEWART BEACH AND SEA WEALTH.

I THINK THIS IS A REAL ISOLATED LOCATION, I THINK IT'S A GOOD PLACE TO TEST THAT MARKET, TO PUSH AS MUCH AS YOU CAN OUT THERE AND SEE WHAT IT BRINGS.

I DON'T KNOW IF WE CAN PUT TIMEFRAMES ON THIS, BUT MAYBE WE CAN, AND SEE WHAT HAPPENS.

>> WELL, I THINK THE MARKET WILL PAY IN TIMEFRAMES.

IF YOU SAY YES, YOU'RE GOING TO KNOW NEXT YEAR.

>> TIMEFRAME, MEANING IF IT BRINGS THE WRONG CROWD, YOU STOPPED DOING IT.

>> SHARON HAD A QUESTION.

>> I DON'T KNOW IF YOU CAN CUT IT OFF LIKE THAT, JUST SLIDE IT AND THEN STOP.

>> YEAH, YOU CAN.

>> THAT'S YOUR OPINION.

>> WE HAVE OVERSIGHT OVER IT.

>> MY QUESTION IS, HAVE YOU SURVEYED PEOPLE WHO DO COME OUT THERE WITH THEIR TRAILERS TO SEE WHAT THEY WANT?

>> WHAT ARE THOSE RESULTS?

>> CORRECT. IN PREPARATION OF THIS IDEA BY PARK BOARD STAFF TO OFFER THIS SERVICE OUT THERE, THEY HAVE SURVEYED THE CURRENT CLIENTELE THAT WE DO ATTRACT PRIMARILY WITH THE RV STAYS, AND THEY WERE ENTHUSIASTICALLY SUPPORTIVE OF IT.

>> IF I REMEMBER FROM MY CONVERSATION WITH [INAUDIBLE] ABOUT THIS, THAT'S WHERE THIS CAME FROM, IS WHY YOU DON'T SELL BEER, WINE.

>> OKAY. IS IT MOSTLY FAMILIES OR JUST HUSBAND AND WIFE OUT THERE? WHAT WERE THE NUMBERS LIKE IN YOUR RESULTS?

>> I AM NOT SURE ABOUT THE DEMOGRAPHICS OF WHO THE CLIENTELE IS,

[05:05:03]

BUT I DO KNOW THAT IT WAS, FROM MY UNDERSTANDING, 100% POSITIVE.

>> IF YOU GO OUT THERE, YOU'LL SEE A LOT OF KIDS.

IT'S PRETTY FAMILY-ORIENTED, BUT A LOT OF COUPLES COME OUT THERE.

THAT'S NOT A PLACE, I THINK, A LOT OF SPLIT SINGLES GO TO.

>> AND A LOT OF ALCOHOL. [LAUGHTER]

>> YEAH. AND A LOT OF ALCOHOL OUTSIDE.

>> LET'S GO AHEAD AND WRAP THIS UP, MARIE.

>> HAVE YOU SURVEYED THE FULL-TIME RESIDENTS AT SEASCAPE?

>> VERY GOOD. WE WOULD WELCOME MAYOR INPUT.

>> THANK YOU, JASON. I UNDERSTAND WE'RE GOING TO HAVE KARAOKE WITH THE BAR; IS THAT RIGHT?

>> YES. I'M SORRY, I DIDN'T BRING SAMPLES.

[LAUGHTER].

>> ALL RIGHT. THANK YOU.

>> YOU'RE WELCOME. [OVERLAPPING]

>> YOU COULD READ 8H,

[8.H. Discussion Of Short Term Rentals (Robb/Brown - 20 Min)]

1, 2, AND 3, PLEASE MA'AM.

>> OKAY, 8H.

DISCUSSION OF SHORT-TERM RENTALS.

ONE DISCUSSION CONCERNING THE PROCEDURES OR THE REGISTRATION OF SHORT-TERM RENTALS TO ENSURE THE COMPLIANCE WITH CITY CODE AND LAND-USE REQUIREMENTS.

TO DISCUSSION RELATED TO THE ADEQUACY OF THE NUMBER OF TRASH CANS UTILIZED BY SHORT-TERM RENTALS AS A FUNCTION OF OCCUPANCY.

THREE, DISCUSSION RELATED TO THE AMENDMENT OF THE CITY CODE OR LAND DEVELOPMENT REGULATIONS TO IMPOSE AN OCCUPANCY LIMIT ON SHORT-TERM RENTALS UTILIZING SEPTIC SYSTEMS TO ENSURE COMPLIANCE WITH STATE LAW.

>> VERY GOOD. THIS IS MORAYS ITEM MURRAY.

>> I'LL SAY I'LL DEFER ITEM 2.

>> YOU'RE GOING TO-.

>> TILL WE GET MORE INTO THE TRASH SITUATION.

>> THAT MAKES SENSE AND IN THE LEU OF TIME.

BUT I WILL TALK ABOUT ITEM 1, AS FAR AS CITY CODE AND LAND USE, AND I'M GLAD THAT FRAZIER STILL HERE.

WHEN THE INTAKE IS TAKEN AT THE SHORT-TERM RENTAL, WE CURRENTLY HAVE ON OUR ROLES OF REGULATIONS THAT A PARKING PLAN MUST BE PRESENTED.

IS THAT SOMETHING THAT WE'RE GETTING AT THE PARK FOR IT? YOU MIGHT WANT TO COME UP BECAUSE YOU'LL HAVE MORE ANSWERS.

>> IT ANSWER YOUR QUESTION. COUNCILMAN ROB, WOMAN ROB.

IT'S NEVER BEEN IMPLEMENTED.

>> BUT IT'S AN ORDINANCE.

>> IT'S ORDINANCE. YES, IT'S NEVER BEEN IMPLEMENTED THOUGH.

>> AGAIN, IT'S-

>> NOW WE DIDN'T HAVE THE WHEREWITHAL.

>> AGAIN, IT'S A SECOND TIME I'M GOING TO REFERENCE THE PAPER AND SAY I AGREE WITH DOFF EDITORIAL THAT WAS IN THERE.

WE NEED TO FOLLOW OUR OWN ORDINANCES TO HAVE BETTER CONTROLS ON SHORT-TERM RENTALS.

WOULD THERE BE A WAY IN OUR CURRENT SOFTWARE THAT YOU COULD REQUEST THEIR PARKING PLAN, WHICH IS REQUIRED BY OUR LDR.

>> THERE ARE OPTIONS THEY WOULD HAVE TO BUILD IT.

OF COURSE IT WOULD TAKE A LITTLE BIT OF TIME, BUT THERE ARE CAPABILITIES TO REQUEST INFORMATION, INCLUDING OUR DOCUMENTS.

IF THEY HAD TO COME UP WITH THE PARKING PLAN, THAT COULD BE SOMETHING THAT WE REQUIRE THEM TO UPLOAD WHEN THEY WOULD GO TO REGISTER.

>> I GUESS THIS IS WHERE I REALLY HAVE A DISCONNECT WITH THE PARK BOARD REGISTERING THE SHORT-TERM RENTALS, THE ORDINANCES, SIT DOWN VICINITY.

AND THEN IF WE DID TAKE IT IN, YOU WOULD THEN GIVE IT TO LIKE WHERE WOULD THE CONTROL B ON ONE OF OUR MANY USELESS ORDINANCES, WHICH IS A VERY GOOD ONE.

HOW WOULD WE CONTROL THAT?

>> GRANTING CITY STAFF ACCESS TO THE SOFTWARE IS AT HEART.

WE'VE DONE THAT WITH SEVERAL CITY STAFF MEMBER IS AND WHERE IT'S EASY TO DO.

YOU'RE ABSOLUTELY RIGHT THOUGH, MURRAY, WHEN YOU SAY THAT WE HAVE A VERY UNIQUE SITUATION, WHEN THE OLD TASK FORCE WAS CONVENIENT AND WE LOOKED AT THE OTHER CITIES, COULDN'T FIND ONE THAT HAD A PART BOARD CITY RELATIONSHIP.

THAT'S THE STUFF AND I KNOW THAT CANCELS, TALKED ABOUT HAVING THAT TASK-FORCE COME BACK AND TALK ABOUT THOSE THINGS.

HOW CAN WE MAKE SURE THAT THIS STUFF IS BEING TRIAGE THE WAY THAT IT SHOULD? THE PARK BOARD HAS THE COLLECTION REGISTRATION AGENT, WE CAN FOCUS ON THOSE SORTS OF THINGS.

RIGHT. BUT WHEN IT COMES TO ORDINANCE ENFORCEMENT, THAT'S WHERE WE NEED SOME ASSISTANCE.

CITY CAN'T DO THAT WITHOUT THE DATA AND HOW WE TRIAGE THAT, HOW WE GET IT TO THE CITY IS SOMETHING WE STILL GOT TO FIGURE OUT.

>> THAT'S SOMETHING I WOULD LIKE YOU ALL TO TALK ABOUT BECAUSE WHAT'S THE POINT OF HAVING THESE ORDINANCES? PROBABLY ONE OF THE WELL, PROBABLY TRASHED FOR A SECOND.

WELL, OCCUPANCY TRASH PARKING, OR OCCUPANCY PARKING TRASH.

WE HAVE AN ORDINANCE AND WE'RE NOT FOLLOWING IT, AND HE'S TAKING THE INFORMATION SITTING BACK THERE AS THE ONE THAT WILL FOLLOW UP ON THE ORDINANCE.

[05:10:04]

WE NEED TO SIT DOWN AND WE NEED TO LOOK AT HOW WE MAKE THAT WORK.

WE'RE NOT WORKING TOGETHER. WE COULD MESS UP A TWO-PIECE LEGO SET DOING IT THIS WAY.

WE NEED TO REALLY GET ON IT TOGETHER.

>> I NEED TO WORK TOGETHER AGAIN.

THAT'S SOMETHING THAT WE NEED TO HAVE REGULAR MEETINGS ON AND LOOKING AT, ADDRESSING ISSUES AND SO FORTH AND I'M WORKING WITH COUNCIL MEMBER DAVID.

DAVID TOO, AND HE WAS THE ONE.

[OVERLAPPING] OTHERWISE I LOOK AT, DAVID COLLINS TODAY.

HE REMINDS ME SO MUCH OF COLONEL SANDERS [INAUDIBLE].

>> MA'AM.

>> I HAD NEVER KNOWN THIS [OVERLAPPING]

>> ALL I MEAN IS A BUCKET OF CHICKEN.

[BACKGROUND]

>> I'M GOING TO JUMP TO ITEM 3, WHICH WOULD ALSO ACTUALLY GOES BEYOND THE LDR.

THERE IS CURRENTLY A STATE REGULATION THAT ONLY ALLOWS SO MUCH OCCUPANCY AND PROPERTIES THAT HAVE A SEPTIC TANK.

WHEN YOU'RE REGISTERING A RENTAL, DO YOU SAY ARE YOU ON A SEPTIC SYSTEM?

>> IT'S NOT A QUESTION THAT'S BEING ASKED.

>> CAN WE ADD THAT QUESTION? CAN THE CITY PROVIDE HIM WITH A LIST OF THE COMMUNITIES THAT ARE STILL ON SEPTIC TANKS?

>> HE'S LIKE, SURE.

>> WELL, IT MAKES IT YOU ALREADY HAVE THAT LIST AND IF IT POPS UP THAT IT'S VERY HARBOR BECAUSE THIS IS SOMETHING THAT THE STATE CAN COME DOWN TO US AND SAY, OH, NO, YOU CAN'T LIMIT OCCUPANCY, THIS IS A STATE LAW.

THIS IS SOMETHING THAT WOULD GIVE US SOME FLEXIBILITY, AT LEAST IN THE NEIGHBORHOODS THAT HAVE SEPTIC TANKS WHERE WE CAN CONTROL OCCUPANCY.

>> WHAT IS THE STATE LAW NUMBER IN A TWO-BEDROOM HOME ON A SEPTIC TANK?

>> I DON'T KNOW.

>> I DON'T KNOW EXACTLY OFF THE TOP OF MY HEAD EITHER.

>> WHAT THEY?

>> THEY DO HAVE A CALCULATION AND I THINK IT'S BASED ON SQUARE FOOTAGE OF BEDROOMS.

>> I THINK IT'S ACTUALLY LIKE TO HER BEDROOM AND TWO ADULTS, TWO CHILDREN PER BEDROOM.

>> THE RESEARCH IT WILL ALIGN IT UP AND MAKES YOUR BRYSON HAS ALL THAT INFORMATION.

>> YOU HAVE READ IT BEFORE. I FIGURED IT'S TWO PER BEDROOM PLUS TWO OR SOMETHING.

>> BUT I CAN'T REMEMBER WHAT IT IS, BUT IT WOULD BE ONE THING THAT WE HAVE THAT WE WOULD HAVE SOME CONTROL ON OCCUPANCY.

>> LOW-HANGING FRUIT. GO AHEAD [INAUDIBLE]. VERY GOOD.

>> LET'S SEE. I CAN'T DO A WHOLE ITEM.

>> IF I MAY, ONE OF THE THINGS I TOOK AWAY FROM THIS IS BRIAN, YOU MADE ME LAUGH SO HARD.

BAPTIZE A CAT.

THESE LEGO SET THAT I'M GONNA HAVE TO REMEMBER THAT [BACKGROUND]

>> DIG AROUND IN THE DAY GETS LONGER, MATTERS [LAUGHTER] WORSE AS THE DAY GOES ON.

>> TO OUR FOUR, WE HIT FIVE.

>> WE HAVE ONE MORE WORKSHOP ITEM, 8I, PLEASE.

[8.I. Discussion Of Amendment Of The City Code Or Land Development Regulations Related To Bars And Noise In R -1 Zoning Districts (Robb/Brown - 15 Min)]

>> YOU AGAIN ABOUT THE ONES SIXTH.

>> 8I, DISCUSS THE AMENDMENT OF A CITY CODE OR LAND DEVELOPMENT REGULATIONS RELATED TO BARS AND NOISE IN R1 ZONING DISTRICT.

>> CURRENTLY IN THIS CITY, WE HAVE AN ORDINANCE THAT IF YOUR URBAN CORRIDOR, YOU CAN ONLY HAVE OUTSIDE MUSICAL UNTIL XYZ TIME I'D SEE THERE 11 OR 12 IF YOU HAVE THAT PERMANENT.

BUT ON THE RESIDENTIAL AREAS, NOT JUST THE WESTERN, BUT I HAPPEN TO HAVE BARBARA, THIS IS AN ISSUE.

WE HAVE NO REGULATION FOR OUTSIDE AMPLIFIED MUSIC.

THEY CHOOSE TO LEAVE IT ON 03:00 AM IN THE MORNING, EVEN IF THEY'RE NOT OPEN, THERE IS NO REGULATION THAT COVERS THAT.

>> ARE YOU TALKING ABOUT LIKE FOR COMMERCIAL?

>> COMMERCIAL.

>> COMMERCIAL PROPERTIES?

>> BARS, I'M TALKING ABOUT BARS.

>> BARS. I GOT IT.

>> I GUESS MY QUESTION IS DOESN'T NO MATTER WHAT THE BUSINESSES THE NOISE ORDINANCE APPLIES TO IT, DOESN'T IT?

>> YES AND NO

>> THE NOISE ORDINANCE SUPPLIES 2047.

>> THAT'S WHAT I'M SAYING.

>> BUT IT HAD TO BE.

>> THE POINT OF COMPLAINT.

>> I MEAN, SO IF THEY GET A COMPLAINT ABOUT A BAR OR A GYMNASIUM OR WHATEVER, THE POLICE GO OUT, DO A DECIMAL READING AT THE PROPERTY LINE.

>> AND IT'S AT THE POINT OF COMPLAINT. THAT'S CORRECT.

>> AS I HAVE HAD CITIZENS SAY TO ME, IT'S NOT MY JOB EVERY DAY TO CALL THE POLICE TO COME OUT BECAUSE OF THE NOISE ORDINANCE.

IT'S NOT MY JOB THERE.

[05:15:01]

THEY'RE SAYING PEOPLE, IT'S NOT A RESONANCE JOB TO HAVE TO POLICE THE CITY.

WE SHOULD HAVE SOME ORDINANCE THAT COVERS THIS.

>> EVEN IF YOU HAD THE ORDINANCE, YOU'D STILL HAVE TO CALL IN FOR THE COMPLAINT.

>> TRUE. BUT THERE'S NOTHING THAT CAN BE DONE NOW BECAUSE THERE IS NO WORD.

>> THERE IS BECAUSE YOU HAVEN'T ALREADY.

>> IT SOUNDS LIKE THE WORD IT'S NOT THE PROBLEM.

IT SOUNDS LIKE THE VIOLATION OR FINE WOULD BE A SOLUTION TO THE WORD.

I MEAN, WE HAVE AN ORDINANCE THAT WORKS FINE.

>> BUT WE DON'T.

>> BUT THERE'S NO CONSEQUENCES [INAUDIBLE]

>> FOR THE VIOLATION OF THE NOISE ORDINANCES?

>> YEAH, I THINK THERE IS.

>> I MEAN, APPARENTLY IT'S NOT WORKING.

>> THAT'S A BIT OF A DIFFICULT THING TO QUANTIFY.

YOU GET OUT THERE WITH THE DECIMAL READER AND YOUR PROPERTY LINE, WHICH CAN ADDRESS THIS PROBLEM BETTER THAN I CAN.

BUT IT'S ONE OF THOSE SITUATIONS WHERE YOU HAVE AN EMPIRICAL READING.

BUT THERE'S, WHEN, THERE'S ALL KINDS OF THINGS THAT CAN REALLY THROW.

>> YOU ON STAFF IN 2012?

>> NO, BOY, OH BOY, OH BOY. WE WENT [OVERLAPPING].

>> I WAS ON.

>> HE WAS JUST FOR READINGS AT THE POINT OF COMPLAINT.

ORIGIN AT THE CURB.

WHERE DID YOU TAKE THAT DECIMAL READING? BECAUSE IT MAKES A DIFFERENCE IF YOU GO ACROSS THE STREET.

>> CAN OF BEER ON AN AREA THAT HAS A BODY OF WATER.

IT MAKES IT TOTALLY DIFFERENT PROBLEM BECAUSE THE VOICES CAN TRY THAT.

>> NOISE IS A VERY, AS WE LEARNED IN 2012, IS A VERY SUBJECTIVE THING.

>> WE HAVE SET A DECIBEL READING.

THAT DECIBEL READING DOES NOT NECESSARILY EQUATE TO COMFORT FOR EVERYBODY.

>> THIS KNOWS ORDINANCE, WHEN IN FACT, WE SPENT A LOT OF TIME RESEARCHING THAT AND GOING THROUGH IT AND IT'S A DIFFICULT THING TO CONTROL.

IT CAME DOWN TO WHAT DECIBEL LEVELS DOES THIS COMMUNITY WANT TO ENACT IN IT'S 70 AT NIGHT AND 75 DURING THE DAY [OVERLAPPING].

>>IN THE ENTERTAINMENT DISTRICT IT'S DIFFERENT.

>> THE CANTINA THAT NO LONGER EXISTS ON THE STRAND, WAS A MAJOR CONTRIBUTOR TO THIS.

IT WAS A VERY BIG DEAL.

>> IT WAS.

>> HOW DO WE CONTROL WHEN A COMMERCIAL PROPERTY GOES FROM, SAY, AN OFFICE TO A BAR, DOES FIRE MARSHAL GO BACK OUT THERE TO SET A NEW OCCUPANCY LEVEL.

ARE THERE ANY KINDS OF THINGS THAT OR IS IT JUST BECAUSE YOU'RE IN A COMMERCIAL AREA.

YOU CAN BE A BAR, YOU CAN PLAY MUSIC, YOU CAN HAVE NOW 175 PEOPLE THERE.

>> LATTER IS NECESSARILY TRUE, BUT THE LATTER IS THE STANDARD.

YES, IF YOU'RE MEASURING THIS OPERATION FROM THE STANDPOINT OF WHAT THAT ZONE ALLOWS.

IN PARTICULAR, WE HAVE SEVERAL ZONES LIKE THIS PARTICULAR SPOT YOU'RE TALKING ABOUT, WHICH IS VERY SMALL.

IT'S BASICALLY JUST THE USE AND A COUPLE OF PROPERTIES AROUND IT.

YOU HAVE RESIDENCES ALL AROUND.

>> ALL AROUND.

>> BUT UNFORTUNATELY, THAT PARTICULAR ESTABLISHMENT WAS IN PLACE BEFORE THESE REGULATIONS TOOK EFFECT.

>> WELL, WAS A COMMERCIAL ZONE, BUT IT WASN'T A BAR IT WAS A REAL ESTATE OFFICE.

>> WHEN DO WE COME IN AND LOOK AT THE ASSESSMENT LIKE WE'RE NOT LOOKING AT THAT.

WE NEED TO CREATE A RULE THAT LOOKS AT THAT.

>> THE BUILDING CODE ADDRESSES THAT IN USE GROUP WHICH IS A VERY BROAD PERSPECTIVE ON USES.

IT'S NOT LIKE OUR ZONING ORDINANCE WHERE YOU HAVE SPECIFIC USES THAT ARE CALLED OUT.

IT'S THE BUILDING CODE AND THEIR GENERAL BROAD PERSPECTIVE ON IT.

>> IF THEY'RE NOT ALTERING THE BUILDING FOR THIS USE.

THERE'S LOT OF REASONS THAT WE WOULD GO IN THERE, NOT ONLY THE ABILITY TO GO IN THERE.

>> THE FARM WORKER USUALLY TRIES TO GO IN THE COMMERCIAL ESTABLISHMENTS OFF HERE.

>> THAT'S BEEN SOMETHING THE FIRE CHIEF EVEN HAS OUR FIRE UNITS GOING OUT AND DOING INSPECTIONS ON THESE THINGS SO WE CATCH THEM.

>> WE DON'T SET LIKE IF WE HAVE A BAR OR RESTAURANT OR WHATNOT.

I MEAN, I KNOW I'VE BEEN IN LOCATIONS THAT I SEE.

I'M THINKING A HOTEL HAS 400 PEOPLE ARE ALLOWED IN THIS ROOM.

I'VE DONE EVENTS WHERE YOU'RE LIMITED TO.

BUT IF A PLACE GOES FROM AN OFFICE TO A BAR, WE DON'T REASSESS THAT?

>> WE SHOULD BE. THERE ARE REGULATIONS THAT DO ABOUT THAT, [OVERLAPPING] BUT THAT'S NOT TO SAY THAT PEOPLE GO AHEAD AND DO THAT AND DON'T GO THROUGH THE CITY PROCESS.

[05:20:04]

BUT IF SOMEBODY DID COMPLAIN ABOUT THAT, THE CITY SHOULD GO OUT THERE AND ASSESS THE NEW USE.

THEN IF THEY HAVEN'T PROVIDED YOU INFORMATION AND THEY SHOULD BE PROVIDING THAT INFORMATION.

>> WELL, LET ME MAKE SURE THAT I UNDERSTAND IF IT'S A ZONING CATEGORY AND THERE'S PERMITTED USES ALLOWED IN THAT AND THAT BUILDING IS NOT ALTERED PHYSICALLY IN ANY WAY.

YOU CAN CHANGE THE USES ON WHATEVER IS PERMITTED IN THAT ZONING CASE.

>> AS LONG AS IT COMPLIES WITH THE ZONING ALLOWED USES, YES.

>> BUT YOU STILL HAVE TO [OVERLAPPING] MEET SAFETY ISSUES.

>> SURE. THE OCCUPANCY FOR THE REAL ESTATE OFFICE IS DIFFERENT THAN A BAR.

THEY HAVE TO MEET NEW OCCUPANCY CODES, AND THEY HAVE TO MEET NEW FIRE CODES.

>> ISSUE IS THAT THEY DIDN'T PULL A BUILDING PERMIT OR ANYTHING WE WOULD HAVE NO WAY OF KNOWING EVEN IF SOMEBODY COULD.

>> THAT DOESN'T MEAN THEY STILL SHOULD BE COMPLYING NOW.

>> NOW, YOU'RE RIGHT.

>> BUT WE NEED TO PUT SOMETHING IN THERE THAT MAKES THIS COMPLIANCE HAPPEN.

>> YES. I MEAN, IF THEY GO OUT THERE AND THERE IS A DIFFERENT USE.

>> WHAT YOU USE GROUP.

IT'S A BROADER TERM THAN USE BECAUSE WE GET SOME VERY SPECIFIC IN OUR [OVERLAPPING]

>> AS YOU GO FROM A REAL ESTATE OFFICE TO A BAR, YOU'RE GOING TO HAVE TO MEET DIFFERENT REQUIREMENTS FOR LIFE SAFETY ISSUE.

>> ON THE PLACE PUBLIC GAP.

>> FIRST OFF, WE'RE WAY OFF SUBJECT.

WE'RE TALKING ABOUT SOUND AND NOW WE'RE TALKING ABOUT OCCUPANCY.

>> NO, WE'RE TALKING ABOUT CHANGE OF VIEW.

>> WE WE'RE OFF PROBABLY.

>> EVERYTHING THAT I'VE EVER DONE WHEN, WHEN WE BUILD OUT A PROJECT, WE TURN OUR PLANS IN.

THEY GO AHEAD AND ASSESS PLAN AND ON THAT PLAN THAT ACTUALLY HAS AN OCCUPANCY ON IT.

TO ME, IT SOUNDS LIKE YOU HAVE AN ILLEGAL BUSINESS IF THEY HAVEN'T SIGNED UP AND THEIR DILIGENCE.

>> MARIE, ARE YOU REQUESTING THAT WE HAVE SOME CHANGE IN THE?

>> I JUST THINK IT'S SOMETHING WE NEED TO LOOK AT IN OUR COMMERCIAL ZONING WHEN AN OFFICE IS A PARTICULAR TYPE OF BUSINESS AND THEN TOWARDS INTO A BAR OR RESTAURANT OR WHATEVER, THEN IT SHOULD TRIGGER PEOPLE GOING TO LOOK AND MAYBE IT'S [OVERLAPPING]

>> THAT JUST TAKES A COMPLAINT.

>> YOU BUT A COMPLAINT THEN AND WE SHOULD BE OUT THERE ALREADY BECAUSE GOD KNOWS [OVERLAPPING].

>> DAVID YOU HAD YOUR FINGER UP.

>> YEAH I HAD MY FINGER UP.

[LAUGHTER] I HEAR WHAT TIM IS SAYING ABOUT USE GROUPS.

BECAUSE OPENING A REAL ESTATE OFFICE IN A STRIP CENTER NEXT TO A RESIDENTIAL IS ONE THING.

OPENING A BAR OR A TIRE STORE OR SOMETHING ELSE.

I MEAN, THEY'RE DIFFERENT USE GROUPS.

SOMETHING THAT THE COUNCIL CONSIDERED SEVERAL YEARS AGO, WHICH I THOUGHT WAS FAIRLY RATIONAL, BUT I DON'T THINK IT EVER WENT ANYWHERE. WHAT'S THAT?

>> BUFFER ZONE.

>> A BUFFER ZONE THAT THERE'S COMMERCIAL [OVERLAPPING] AND THERE'S RESIDENTIAL, ADJACENT COMMERCIAL.

BUT THAT'S ADJACENT USE GROUPS.

>> WE TALKED ABOUT THAT. ONE OF THE THINGS WE DISCUSSED WITH THAT THERE WAS DUE TO THE COMPACT NATURE OF THE ISLAND, IT'S REALLY HARD TO ALLOW THESE BUFFER ZONES.

WE'VE TALKED ABOUT I THINK IT WAS COUNCIL MEMBER CHARLTON THAT BROUGHT IT UP.

IT WILL A VERY GOOD IDEA.

BUT IT'S NOT LIKE WE'RE STARTING THIS WITH BIG OPEN GRASS FIELDS.

THESE THINGS ALREADY EXIST.

ALL OF A SUDDEN YOU MAY HAVE SOMETHING IN AN AREA WHERE YOU DON'T WANT YOUR HOME TO SUDDENLY BECOME A BUFFER ZONE IF YOU'RE ALREADY ARE ONE, AND MOST OF THE TIMES YOU HAVE A BAR ONE ALL THE WAY UP AGAINST.

>> ONE OF THE THINGS I THINK THAT STOOD IN HIS WAY THEN WAS THE RECOGNITION THAT YOU'D NEVER GO FROM COMMERCIAL TO LESS THAN COMMERCIAL.

THE WAS ALWAYS GOING TO BE SOMETHING, THE IMPACT WAS ALWAYS GONNA BE ON THE RESIDENTIAL SIDE OF THAT.

BUT YOU CAN'T TAKE A COMMERCIAL ZONE AND SAY, YOU'RE NOT REALLY COMMERCIALLY ANYMORE HERE.

>> TIM, WHAT ARE YOU TAKING AWAY FROM THIS CONVERSATION SO THAT?

>> HE'S GOING TO GO DRAG IT DOWN ON AIR.

>> I'M SORRY.

>> I UNDERSTAND THAT WHAT SHE'S SAYING BECAUSE THEY TOOK THE SONIC, WELL, IN THE PROCESS AND THEY DID GET IT APPROVED THROUGH THE PLANNING.

THEY WERE TURNING SONIC INTO A BAR AND THEN PUTTING SOMETHING ON TOP, THEY WERE CHANGING THE TOP OF IT.

AND WE HAD A CHURCH WITHIN THE AREA, AND A SCHOOL.

I DON'T KNOW HOW IT'S ALLOWED.

AND THEN SOMETHING'S HAPPENED TO THE PROJECT, THEY'VE STOPPED, BUT THAT IS SOMETHING OF A CONCERN.

>> THE WAY THOSE MEASUREMENTS ARE TAKEN ARE VERY ODD, AND SPECIFIED IN THE GABC RULES, BUT BASICALLY, YOU GO FROM THE FRONT DOOR OF THE ESTABLISHMENT OUT TO THE CLOSEST RIGHT OF WAY AND THEN ALONG THAT RIGHT OF WAY.

[05:25:04]

AND YOU COULD LITERALLY BE RIGHT NEXT DOOR TO SOMEBODY.

IF YOU HAD ENOUGH FOR THE WAY IT NEEDS TO BE CALCULATED, YOU COULD STILL HAVE IT.

>> [OVERLAPPING] GET BACK ON IT.

>> IS A NUISANCE ORDINANCE THE RIGHT TERM? THAT'S WHAT IT SOUNDS LIKE.

IT SOUNDS LIKE THERE ARE BUSINESSES THAT CREATE NUISANCES FOR RESIDENTIAL AREAS.

SOME DON'T. YOU CAN'T JUST THROW OUT ALL THE BARS BECAUSE THERE'S A LOT OF BARS AND THESE CORNER STORES AROUND TOWN THAT ARE PROVIDING SERVICE TO THE NEIGHBORHOOD AND THE NEIGHBORHOOD LIKES THEM.

>> THAT IS NOT THE POINT IN QUESTION.

>> IT SEEMS LIKE IT'S GOT TO BE TIED BACK TO SOME NUISANCE OR GET SOME NOISE ORDINANCE AS PART OF THAT.

>> [OVERLAPPING] WELL, RIGHT NOW, WE GET A TREMENDOUS AMOUNT OF REQUEST FOR LOUDSPEAKER PERMITS AND WE TRY, WITH SOME EXCEPTION, TO IF IT'S IN A RESIDENTIAL AREA, IT HAS TO BE SHUT DOWN BY 8:00 P.M. [OVERLAPPING] WE TRY.

>> YEAH IN SOME CASES.

>> THAT LOUDSPEAKER PERMIT, BRIAN, DOES THAT APPLY TO OUTDOOR SPEAKERS THAT ARE INSTALLED?

>> AMPLIFIED SOUND OUTSIDE, NOT INSIDE.

>> THAT WOULD COVER THAT.

>> IT DOES. HERE'S THE ISSUE.

IN CERTAIN AREAS WE ALLOW IT.

NOBODY WOULD REQUEST THESE UNLESS THEY WANT TO DO IT LATER.

A LOT OF TIMES WE END UP APPROVING THESE SUBJECT TO COMPLAINT.

WHEN WE GET A COMPLAINT [INAUDIBLE] GOES OUT THERE AND THEY SHUT THEM DOWN.

BUT THEN I HAVE TOLD MR. GLOESKI [PHONETIC] THIS 1,000 TIMES, I DO NOT LIKE THESE LOUDSPEAKER PERMITS.

I THINK WE HAVE A RULE, WE HAVE A DECIBEL READING.

AND IF YOU'RE IN A RESIDENTIAL AREA, YOU CAN'T HAVE AMPLIFIED SOUND AFTER 8:00 PM.

PERIOD. AND IF YOU DO AND THERE'S A COMPLAINT, IT FALLS BACK ON THE NOISE ORDINANCE.

THE NOISE ORDINANCE IS AT THE SOURCE OF COMPLAINT IF YOU'RE EXCEEDING THAT.

THIS IS THE SAME CASE, I THINK, WOULD SOLVE THE ISSUE THAT MS. ROB'S HAVING, IF THE POLICE COME OUT AND COME TO THE LOCATION OF THE COMPLAINT AND THERE'S A VIOLATION OF THE NOISE ORDINANCE, THEN THEY SHOULD SHUT DOWN AND NOT BE ABLE TO OPERATE THAT ANYMORE.

>> GREAT.

>> RIGHT NOW IN OUR STANDARDS, WE HAVE THE LIMITED USE STANDARDS FOR BARS THAT WE'RE HAVING HOURS OF OPERATION NEAR RESIDENTIAL DISTRICTS, WHICH IS WHEN LOCATED WITHIN 200 FEET OF AN R0, R1 OR R2, MEASURED FROM THE RADIUS OF THE PROPERTY LINE BUT FOR LIMITED USE, UNLESS SEPARATED BY A DISTRICT FROM AN ARTERIAL STREET SHALL NOT OPERATE AFTER 12:00 AM.

>> BUT THAT'S IN WHAT?

>> THAT'S ONLY IN ONE OF OUR ZONES.

>> ONE OF OUR ZONES.

>> RIGHT NOW IT'S OUTRIGHT PERMITTED BY RIGHT IN COMMERCIAL, RESURRECT, LI, HI.

THE LIMITED IS ONLY APPLICABLE TO THE CENTRAL BUSINESS.

>> THAT'S OPERATIONS.

>> IT'S NOT THAT THE BAR IS OPERATING.

IT'S THAT IT'S CREATING TOO MUCH NOISE.

>> [OVERLAPPING] TWO NUISANCE BARS, ONE IS OPEN TO 2:00 AM AND IT'S WITHIN 100 FEET OF R1, BUT IT'S NOT IN THE CITY.

>> BUT IT'S A NUISANCE BECAUSE IT'S OPEN OR BECAUSE IT'S NOISY.

ARE THEY PLAYING MUSIC?

>> OCCUPANCY IS ONE IS MUSIC, ONE IS OCCUPANCY.

>> ONE IS NOT IN THE CITY.

YOU SAID IT'S NOT IN THE CITY.

>> THEY'RE BOTH IN THE CITY.

>> YOU SAID NOT IN THE CITY.

>> [OVERLAPPING] NOT IN.

>> YOU THREW ME FOR A LITTLE BIT FROM THERE.

>> MARIA, COULD YOU GET WITH [OVERLAPPING] TIM AND LET'S LOOK AT THAT AND SEE WHAT CHANGES NEED TO BE MADE.

>> SURE. IT MAY BE AS SIMPLE AS DOING A COUPLE OF MORE LIMITED USES IN THE AREAS OF CONCERN.

>> I CAN TELL YOU, SOUND DOES CRAZY THINGS.

YOU CAN SIT IN MY BACKYARD AND I HEAR CHA-CHA DOING THE MACARENA ALL SUMMER LONG FROM THE RAIN FOREST.

>> IF YOU'RE ON THE BAY, SAY, WE COULD BE TALKING LIKE THIS, AND YOU CAN HEAR ABOUT 300 FEET AWAY THE CONVERSATION, SO WATCH IT IF YOU'RE ON THE BAY IF YOU'RE TALKING ABOUT YOUR NEIGHBORS. [LAUGHTER]

>> I HEAR THE MICKEY MOUSE THEME IN MY FRONT PORCH FROM THESE CRUISE LINES.

>> REALLY?

>> VERY GOOD. YOU'RE GOING TO GET WITH TIM.

>> VERY GOOD. WE'LL BRING THAT BACK.

IT IS COUNCIL 326.

WE ARE GOING TO RECESS AND RECONVENE IN COUNCIL CHAMBERS IN APPROXIMATELY, HOW MUCH TIME DID YOU WANT, COUNCIL, BEFORE WE RECONVENE?

>> FIVE MINUTES.

>> FIVE MINUTES. AT 3:31, WE'LL RECONVENE.

>> WE'LL BE THROUGH BY 4:00.

>> MICS ARE ON BY THE WAY.

>> MICS ARE ON. VERY GOOD.

COUNCIL, WE ARE BACK INTO SESSION.

IT IS NOW 3:34 PM.

AND WE ARE BACK INTO REGULAR SESSION HERE IN THE COUNCIL CHAMBERS.

[05:30:01]

COULD YOU READ ITEM 10, PLEASE. JANELLE?

>> ITEM 10, PUBLIC COMMENT, AGENDA ITEMS AND NON-AGENDA ITEMS.

>> THIS IS FOR THE PUBLIC TO GIVE ANY INPUT ON AGENDA ITEMS OR NON-AGENDA ITEMS FOR OUR REGULAR MEETING THAT WE ARE NOW IN.

I'M GOING TO CALL FOR ANY PUBLIC COMMENTS FROM ANYONE.

HEARING NO RESPONSE, LET'S MOVE TO OUR ACTION ITEMS, PLEASE, MA'AM.

[11.A.Consider For Action Issuance Of Direction To The City Attorney To Effect Resolution Of The Claim Of Longhorn International LTD Previously Presented To The City And As Discussed In Executive Session. (Legal)]

>> ITEM 11A, CONSIDER FOR ACTION.

ISSUANCE OF DIRECTION TO THE CITY ATTORNEY TO AFFECT RESOLUTION OF THE CLAIM OF LONGHORN INTERNATIONAL LTD PREVIOUSLY PRESENTED TO THE CITY, AND AS DISCUSSED IN EXECUTIVE SESSION.

>> I WOULD MAKE A MOTION.

I MOVE TO SETTLE THE CLAIM OF LONGHORN INTERNATIONAL TRUCKS, INCORPORATED WITH A PAYMENT BY THE CITY TO THE CLAIMANT IN THE AMOUNT OF $591,105.30, SUBJECT TO RECEIPT OF A RELEASE OF THE CITY FROM LIABILITY IN A FORM APPROVED BY THE CITY ATTORNEY.

IS THERE A SECOND TO THAT?

>> HAVE A SECOND BY COUNCILMAN FINKLEA.

THANK YOU, DAVID.

ANY DISCUSSION ON THAT, COUNCIL? PLEASE CAST YOUR VOTE.

>> [BACKGROUND]

>> THAT IS UNANIMOUSLY APPROVED BY ALL THAT ARE HERE.

COUNCILMAN LEWIS IS NOT PRESENT.

ITEM 11B PLEASE.

[11.B.Consider Approval Of The City Auditor's Audit Plan For FY 2024. (Brown)]

>> 11B, PLEASE CONSIDER APPROVAL OF THE CITY AUDITOR'S AUDIT PLAN FOR FY 2024.

>> WE HAVE DISCUSSED THIS IN COUNCIL CHAMBERS.

IS THERE ANY MOTION ON THIS?

>> MOVE THAT WE'D THEIR DIFFER WE MOVE FORWARD BY REMOVING THE WIDTH FOR MOVING THE PORT AND THE PARK BOARD ITEM.

>> THERE'S A MOTION FOR THE APPROVAL OF THE CITY AUDITOR'S PLAN WITH THE DELETION OF THE INTERNAL AUDIT OF THE PORT AND THE PART BOARD ITEMS. IS THAT CORRECT? WE HAVE A MOTION FOR THAT.

ALL SECOND THAT? YES, JOHN.

>> I DON'T HAVE A PROBLEM WITH THAT, EXCEPT FOR I WOULD LIKE THE PARKING ITEM TO BE INCLUDED IN THE WAY. I'M SORRY

>> I WOULD LIKE TO AUDIT PLAN TO INCLUDE THE PARKING ITEM WITHIN THE AUDIT PLAN TO BE APPROVED.

>> WELL, I THINK IT IS.

SHE DID NOT DELETE THAT.

>. WELL, SHE SAID THE PORT AND THE PARK BOARD, THERE ARE TWO ITEMS FOR THE PORT.

>> I'M SORRY.

>> WITH THE EXCEPTION OF THE PARKING PLAN TO BE DONE BY KERRY.

>> IS THAT MEET YOUR APPROVALS?

>> CAN WE ENUMERATE WHAT NUMBER THAT IS IN THE AUDIT PLAN THAT NEEDS TO BE STRICKEN? I THINK THE ONES THAT WERE BE STRICKEN WOULD BE 10 AND 11.

>> IT'S YOUR MOTION, SO JUST MAKE SURE THAT'S WHICH YOU.

>> I DON'T HAVE THAT. IT'S 10 AND 11.

>> TEN AND 11?

>> YES, 10 AND 11.

>> VERY GOOD. THANK YOU, DAVID, AND CLARIFIES THAT.

THANK YOU FOR CLARIFICATION.

>> I NEED TO MAKE A SECOND.

>> WE HAVE A MOTION, AND I AM THE SECOND ON THAT.

>> COUNCIL WHEN ROB INCLUDED SOMETHING IN HER MOTION THAT I QUESTION AND THAT IS TO BE DONE BY KERRY.

WE EITHER ASSIGN THESE TO THE AUDITOR'S OFFICE, SO WE DON'T.

>> WHAT HE HAS DOWN HERE.

>> THAT'S WHAT HE HAS DOWN HERE AS WHO DO IT, BUT I DON'T THINK IT'S UP TO US TO DECIDE WHICH OF HIS PERSONNEL DOES WHICH AUDIT.

>> I'LL REMOVE THAT AS PRESENTED.

>> THAT'S FINE WITH ME.

>> VERY GOOD.

>> THE AMENDED MOTION IS TO APPROVE THE CITY AUDITORS AUDIT PLAN WITH THE DELETION OF ITEM 10 AND 11 AND THAT'S IT. VERY GOOD.

[05:35:02]

ANY FURTHER DISCUSSIONS, COUNCIL? PLEASE CAST YOUR VOTE.

>> YOU HAVE A JOB HERE, BRIAN.

>> THAT IS UNANIMOUSLY APPROVED BUT FOR THE ABSTENTION OF COUNCILMAN LEWIS, WHO'S NOT PRESENT, ITEM 11C PLEASE.

[11.C.Consider A Motion Directing City Manager To Procure, Using Appropriate Procurement Procedures, The Services Of An Outside Audit Firm Or Firms To Conduct An Audit Of The Galveston Wharves In Accordance With The Priorities As Determined By Council. (Brown)]

>> 11C, CONSIDER A MOTION DIRECTING THE CITY MANAGER TO PROCURE USING APPROPRIATE PROCUREMENT PROCEDURES, THE SERVICES OF AN OUTSIDE AUDIT FIRM OR FIRMS TO CONDUCT AN AUDIT OF THE GALVESTON WARPS IN ACCORDANCE WITH THE PRIORITIES AS DETERMINED BY COUNCIL.

>> JOHN, DID YOU WANT TO MAKE A MOTION ON THAT, SIR?

>> I'LL TRY TOO HERE. I WILL MAKE A MOTION.

WELL, LET ME ASK SOME QUESTIONS FIRST.

IN HERE, I WANT TO CLARIFY A COUPLE OF THINGS JUST IN THE AGENDA ITEM.

ACCORDING WITH THE PRIORITIES DETERMINED BY COUNCIL, WE HAVEN'T REALLY DETERMINED THAT.

IF I MAKE A MOTION FOR A FINANCIAL AUDIT, IS THAT ENOUGH, I GUESS?

>> WELL, BUT THEY DON'T HAVE TO.

IF COUNCILMAN MUST ASK CONSIDERING A FINANCIAL AUDIT THAT'S COMPREHENSIVE FOR THE ENTIRE ORGANIZATION?

>> SOMETHING ELSE. BY ME SAYING A FINANCIAL AUDIT, OF COURSE, I WOULD WANT THAT YOU'RE NOT GOING TO PUT THAT OUT IN THE SCOPE OF WORK, JUST SAYING FINANCIAL AUDIT, YOU'RE GOING TO ADD A SCOPE OF WORK TO THAT.

>> THE SCOPE OF WORK WILL INCLUDE AS IT STANDS RIGHT NOW, WHAT'S ON YOUR LIST? THAT LIST NEEDS TO BE CHANGED.

>> THAT'S NOT PART OF THIS.

WELL, IT'S GOOD TO LISTEN TO IT.

>> THEY'RE NOT GOING TO GO OUT AND JUST SAY, HEY, WE NEED A FINANCIAL AUDIT. CORRECT?

>> YES, CORRECT. [LAUGHTER]

>> THAT'S WHY I WANT TO MAKE SURE MY MOTION IS CLARIFIED HERE.

>> WE'LL DEFINE A SCOPE TO LOOK AT WHATEVER COUNCIL WOULD LIKE US TO LOOK AT.

>> WE DON'T REALLY HAVE THAT IN FRONT OF US BESIDES WHAT WE'VE BEEN GIVEN IN THOSE FOUR OR FIVE POINTS.

WHAT WE CAN DO, WHAT IT MAY I SUGGEST THAT YOU GUYS YOU PROVE THIS SUBJECT TO FURTHER DISCUSSION BY COUNCIL AND APPROVAL OF A BECAUSE I'M GOING TO HAVE TO BRING BACK ANY AGREEMENT.

ANYWAY. UNLESS YOU REMEMBER WHAT YOU GO THROUGH, WHETHER THAT'S CORRECT, BUT WE'RE DOING IT.

WE'RE DOING A REQUEST AND IF THAT'S THE CASE, IF WE CAN NEGOTIATE, THAT WILL BRING IT BACK TO YOU GUYS AND SAY, LET'S NARROW DOWN THE SCOPE SO WE CAN TALK TO THAT, BUT LET'S GET AUTHORIZATION TO DO IT AND THAT WAY I CAN CHECK ON PROCUREMENT WITH WHITLEY PENN.

IF WE CAN'T DO USE WHITLEY PENN WILL DO AN RFP AND WILL LIST ALL THE DIFFERENT SERVICES THAT WE MAY NEED AND THEN COUNCIL CAN DEVELOP THE SCOPE FROM THERE.

>> WE'LL COME BACK TO DEVELOP THIS.

>> I'M NOT GOING TO AWARD ANY WORK TO ANYBODY WITHOUT COMING BACK TO COUNCIL.

>> BUT BRIAN, THEN YOU NEED TO IF YOU HAVE TO SEND OUT AN RFQ OR AN RFP, YOU WOULD NEED TO DELINEATE THE SCOPE OF WORK.

>> WELL, REMEMBER, IF WE'RE DOING AN RFQ, WE'RE LOOKING FOR QUALIFIED FIRMS THAT CAN DO THESE TYPES OF THINGS AND WE WILL PROBABLY HAVE A LIST OF MANY THINGS BECAUSE YOU NEVER KNOW COUNCIL MAY, AS YOU DIG INTO IT YOU'RE DEALING.

REMEMBER, WE AUTHORIZE THIS FOR BOTH THE BOARD AND THE PARK BOARD.

IF YOU'RE GOING TO USE THIS FIRM, THERE MAY BE SOMETHING DIFFERENT AT THE PARK BOARD THAT YOU GUYS WANT TO LOOK AT SO WE'RE GOING TO MAKE SURE THAT WE HAVE A LIST OF FIRMS FOR YOU.

IF WE DO AN RFQ, YOU'LL PROBABLY HAVE MORE THAN ONE FIRM TO CHOOSE FROM.

>> BUT BEFORE WE CHOOSE THE FIRM, WE WILL FINALIZE THE LIST.

>> I WOULD HOPE THAT YOU WOULD. WHAT WE WOULD DO IS WE DETERMINE THE SCOPE AND THEN WE WOULD PICK THE FIRM OF THE LIST.

>> THAT YO WOULD BRING THAT SCOPE BACK TO COUNCIL?

>> YES. MAYBE EVEN BEFORE WE GO HOME TODAY.

[LAUGHTER].

>>TIME IS OF THE ESSENCE HERE. MY REASON TO DO THIS IS WE'RE GOING TO BE LOOKING AT APPROVING $50 MILLION AND NOT ONLY THAT, THE PORT IS GOING TO BE BACK TO US IN THE VERY NEAR FUTURE FOR ADDITIONAL MONEY.

THEY TOLD ME THAT DIRECTLY.

I WANT TO MAKE SURE THAT WE CAN DO THIS AUDIT, GET IT DONE BEFORE THEY COME BACK TO US.

[05:40:01]

I'M NOT LOOKING FOR A THREE-YEAR AUDIT, I'M LOOKING FOR SIX MONTHS.

>> WELL, I DON'T KNOW IF I HAVE ANY PARTICULAR ITEMS RIGHT NOW, BUT WE HAVE BEEN GIVEN A LIST.

>> MOST OF THE BIGGER FIRMS, WOULD SEEK OUT, WOULD PROBABLY BE ABLE TO DO JUST ABOUT ANYTHING YOU'RE DOING. LET'S DO THIS.

I WOULD SUGGEST MAYBE FOR YOUR 21ST AGENDA, YOU PUT ON THEIR DIRECTION FOR SCOPE OF WORK FOR THESE AUDITS.

>> WELL, WHAT CAN ON THE 25TH BECAUSE WE'RE ALREADY PAST THE DEADLINE.

>> NO TOMORROW IS THE DEADLINE FOR YOU GUYS.

I CAN'T DO IT. YOU CAN.

>> DEADLINE BECAUSE I CHECKED ON HIM FOR ANOTHER ITEM.

>> TODAY AT NOON.

>> THE DELLS COUPLE OF [LAUGHTER]

>> [BACKGROUND]

>> EXACTLY.

>> MAYBE STAFF COULD ADD IT. [LAUGHTER]

>> WELL, I WOULD LIKE SOMEWHAT OF A DISCUSSION AT OUR MEETING ON THE 21ST AS A LITTLE BIT OF AN UPDATE ON WHEN WE'RE GOING TO SEE THAT.

WE CAN'T GET ON THE WORKSHOP.

>> BUT I'M HAPPY TO. I WILL UPDATE YOU VIA EMAIL TO COUNT.

>> IS THERE A WAY THAT WE COULD ADD IT TO ANOTHER AGENDA ITEM BECAUSE YOU CAN EDIT AN AGENDA ITEM? IS THERE SOMETHING ON THAT 21ST?

>> I HAVE NO IDEA WHAT YOU HAVE ON THE AGENDA FOR THE 21ST.

>> I DO. WE HAVE A WORKSHOP.

I'VE SENT THE WORKSHOP TO JANELLE THIS MORNING ON THAT.

YOU'RE GOING TO FINALIZE THAT THIS AFTERNOON. AREN'T YOU JANELLE?

>> I THINK THERE'S SOME LANGUAGE IN THE ORDINANCE THAT ALLOWS THE MAYOR TO ADD SOMETHING [OVERLAPPING].

>> THERE IS AND I CAN PUT THAT OVER THERE.

>> THAT SOLVES THAT PROBLEM.

>> DIDN'T YOU ALL HAVE A BETTER ANSWER FOR YOU AS TO WHETHER WE CAN CONTRACT WITH OUR EXISTING AUDITOR OR WHETHER WE HAVE TO GO FOR AN RFQ.

>> I WANT TO BE CLEAR ON WHAT WE'D LIKE JOHN ON THAT WORKSHOP SO THAT WE MAKE SURE WE COVER YOUR THOUGHTS.

>> TO DEFINE THE SCOPE.

>> WE WANT TO DISCUSS THE SCOPE OF THE FINANCIAL AUDIT FOR THE PORT.

>> THAT'S CORRECT.

>> OKAY. THAT'S WHAT WE GOT.

>> I'LL MAKE A MOTION TO APPROVE THE PROCUREMENT OF A OUTSIDE AUDIT FIRM TO DO A FINANCIAL AUDIT AT THE GALVESTON WHARVES WITH A SCOPE TO FOLLOW.

>> VERY GOOD. I'LL SECOND THAT.

>> PUT YOUR MOTIONS IN.

>> I WANTED TO MAKE SURE HE MADE THE MOTION CORRECTLY.

>> GO FOR IT.

>> VERY GOOD. ANY FURTHER DISCUSSION, COUNCIL? PLEASE CAST YOUR VOTE.

>> NOT THERE YET.

>> RIGHT AGAIN.

>> YEP.

>> YOU GOT A SECOND AGAIN. STILL DEAD.

>> OH BOY.

>> THERE WE GO. IT'S A LITTLE SLOW, IT'S A LITTLE TIRED. IT'S LONG DAY.

>> IT IS. THAT IS UNANIMOUSLY APPROVED.

THANK YOU. LET'S MOVE TO ITEM 11.D, PLEASE.

[11.D.Consider For Approval Of The Debt Issuance Procedure For The Galveston Wharves Board And City Of Galveston. (Brown)]

>> 11.D, CONSIDER FOR APPROVAL AT THE DEBT ISSUANCE PROCEDURE FOR THE GALVESTON WHARVES BOARD AND CITY OF GALVESTON.

>> I WOULD MOVE FOR APPROVAL OF 11.D.

>> MAYOR, I WANT TO THANK BARRON WALLACE FOR HIS HELP WITH THIS.

>> BARRON, THANK YOU FOR THAT.

>> NOT THAT WE NEED TO THANK HIM, HE'S BEEN PAID BY THE HOUR THE WHOLE DAY.

>> VERY GOOD. PLEASE CAST YOUR VOTES ON THAT.

>> WOULD YOU LIKE CANDY?

>> I'LL GET THAT.

>> THAT IS UNANIMOUSLY APPROVED, BUT FOR COUNCILMAN LEWIS, THAT'S OUT.

LET'S MOVE TO ITEM 11.E, PLEASE.

[11.E.Consider For Approval An Ordinance Of The City Of Galveston, Texas, Authorizing The Issuance, Sale And Delivery Of City Of Galveston, Texas, Wharves And Terminal First Lien Revenue Bonds, Series 2023 (Amt); And Providing For The Security Thereof; Approving The Form And Substance, And Authorizing The Execution And Delivery Of An Amended And Restated Trust Indenture And First Supplemental Amended And Restated Trust Indenture; Approving And Authorizing The Execution And Delivery Of Related Transaction Documents; Approving The Use And Distribution Of A Preliminary Official Statement And The Use And Distribution Of An Official Statement; And Making Certain Findings With Respect Thereto And Containing Other Provisions Relating To The Subject. (Brown)]

>> 11.E, CONSIDER FOR APPROVAL AND ORDINANCE OF THE CITY OF GALVESTON, TEXAS, AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF GALVESTON, TEXAS WARPS AND TERMINAL FIRST-LINE REVENUE BONDS, SERIES 2023, AND PROVIDING FOR THE SECURITY THEREOF, APPROVING THE FORM AND SUBSTANCE AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AMENDED AND RESTATED TRUST INDENTURE AND FIRST SUPPLEMENTAL AMENDED AND RESTATED TRUST INDENTURE, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED TRANSACTION DOCUMENTS, APPROVING THE USE AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT, AND THE USE AND DISTRIBUTION OF AN OFFICIAL STATEMENT AND MAKING CERTAIN FINDINGS WITH RESPECT THERE TOO, AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT.

>> VERY GOOD. WE'VE DISCUSSED THIS IN THE PAST.

[05:45:03]

I'M GOING TO MAKE A MOTION FOR APPROVAL OF ITEM 11.E.

>> ANY DISCUSSION ON THAT COUNCIL? PLEASE CAST YOUR VOTE.

THAT IS UNANIMOUSLY APPROVED, BUT FOR COUNCILMAN LEWIS WHO IS NOT HERE.

THANK YOU, COUNCIL. ITEM 11.F, PLEASE.

[11.F.Consider For Approval An Ordinance Of The City Of Galveston, Texas, Amending The Code Of The City Of Galveston, As Amended, Chapter 4, “Alcoholic Beverages”, Section 4-6 “Scope”, To Provide Regulations For The Sale Of Alcohol At Dellenara Park (Aka) The West End Park; Upon An Approval Of A Concessions Agreement By City Council And The City Manager; Making Various Findings And Provisions Related To The Subject; Providing For An Effective Date. (Bouvier/Brown)]

>> 11.F, CONSIDER FOR APPROVAL AND ORDINANCE OF THE CITY OF GALVESTON, TEXAS, AND MANY OF THE CODE OF THE CITY OF GALVESTON AS AMENDED CHAPTER 4, ALCOHOLIC BEVERAGES, SECTION 4-6SCOPE, TO PROVIDE REGULATIONS FOR THE SALE OF ALCOHOLIC DELLANERA PARK, AKA THE WEST END PARK.

UPON AN APPROVAL OF A CONCESSIONS AGREEMENT BY THE CITY COUNCIL AND THE CITY MANAGER, MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT PROVIDING FOR AN EFFECTIVE DATE.

>> WE NEED TO DEFER THIS AFTER OUR DISCUSSIONS.

>> I WOULD ARGUE THAT WE DO NOT, THAT, AS JOHN POINTED OUT, THIS IS TO AUTHORIZE THE SALE OF ALCOHOL AT DELLANERA [OVERLAPPING].

>> YEAH, THAT ONLY GOES FROM 10TH TO 61ST, I BELIEVE YOU.