[00:00:03]
>> LET'S SEE. ARE WE TELEVISING?
>> VERY GOOD. GOOD MORNING TO EVERYBODY. IT'S A PLEASURE.
[1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]
IT'S OUR JOINT MEETING WITH THE WHARVES BOARD.SO GLAD TO SEE THE WHARVES BOARD HERE THIS MORNING AND THANK YOU FOR BEING HERE.
FOR THOSE THAT ARE IN THE COMMUNITY THAT MAY BE WATCHING THIS, GOOD MORNING TO YOU, GLAD TO HAVE YOU WITH US THIS MORNING.
WE'LL START OFF WITH THE ROLL CALL FOR THE COUNCIL, AND THEN WE'LL TURN IT OVER TO OUR CHAIRMAN OF THE WHARVES BOARD, VICTOR PIERSON. JANELLE?
>> COUNCIL MEMBER LEWIS? NOT HERE YET.
>> COUNCIL MEMBER RAWLINS IS ABSENT TODAY.
>> OKAY, MAYOR. ANGIE, CAN WE HAVE A ROLL CALL FOR THE WHARVES BOARD?
>> VICE CHAIRMAN JEFF PATTERSON?
>> THEN WE HAVE ROGER REES AND ANTHONY BROWN.
>> I DECLARE WE HAVE A QUORUM AND ALL TRUSTEES ARE PRESENT.
WE HAVE A QUORUM. WE'LL ASK IF THERE ARE ANY CONFLICTS OF INTEREST BY A TRUSTEE.
MAYOR, WE'LL TURN IT BACK OVER TO YOU.
TODAY, WE HAVE A NUMBER OF ITEMS WITH THE WHARVES BOARD, AND THIS IS A TIME FOR US TO ACQUAINT OURSELVES MORE WITH WHARVES BOARD AND THE PORT, WHAT'S GOING ON.
I KNOW ALL OF THESE ITEMS ARE BASICALLY BE LED BY THE PORT TODAY.
LET'S HAVE ITEM 3A, PLEASE, JANELLE.
[3.A Discussion of the Updated Master Plan for the Port of Galveston]
>> ITEM 3A, DISCUSSION OF THE UPDATED MASTER PLAN FOR THE PORT OF GALVESTON.
>> VERY GOOD. AS YOU KNOW, COUNCIL MEMBERS, THERE IS A MASTER PLAN THAT WAS PUT TOGETHER IN 2019 FOR THE PORT.
THEY'VE BEEN FOLLOWING THAT VERY RELIGIOUSLY THROUGHOUT THERE SINCE THAT TIME, AND NOW THERE IS TALK ABOUT WHERE WE NEED TO HEAD IN THE FUTURE THERE WITH THE PORT.
THE PORT NOW HAS STARTED AN UPDATED MASTER PLAN.
THEY'RE GOING THROUGH THAT PROCESS, AND I'M GOING TO TURN IT OVER TO THEM.
>> WE HAVE A SAYING AT THE PORT, WE'RE WORKING THE PLAN AND THE PLAN IS WORKING, BUT WE'RE ACTUALLY WORKING IT VERY WELL.
WE ARE AHEAD OF SCHEDULE BY ABOUT SIX YEARS ON THE MASTER PLAN.
ROGER, IF YOU'LL STEP UP AND GIVE US AN UPDATE. COME ON UP.
WHERE WE'RE AT IN THE PLANNING PROCESS BECAUSE WE'RE DOING INTERVIEWS.
>> WON'T YOU COME UP HERE AND SIT DOWN.
>> SIT NEXT TO THE MAYOR THERE.
>> YOU'LL PROBABLY HAVE OTHER INPUT AS WE GO ALONG.
>> THIS IS THE ONE THAT'S ELECTRIFIED?
>> JUST KEEP YOUR FEET OFF THE FLOOR.
>> AS FAR AS A MASTER PLAN, AS I MENTIONED, WE'RE UPDATING THAT RIGHT NOW AND WE HAD BAN LAST WEEK JUST FOR A DAY TO GO WITH STAFF, WHAT THEY'VE COME UP WITH SO FAR, AND REALLY MORE OR LESS WHERE WE ARE RIGHT NOW IS IN THE RESEARCH.
THEY'RE RESEARCHING THE MARKETS FOR US.
WE'VE SEEN SOME PRELIMINARY NUMBERS ON GROWTH FOR THE CRUISE BUSINESS, AND SPENT A LOT OF TIME FOCUSING ON THE CARGO BUSINESS.
THE ISSUE, OBVIOUSLY, IS WE'RE IN THE MIDDLE BECAUSE FOR ANYTHING TO HAPPEN ON THE WEST END, OBVIOUSLY, WE'RE IN THE MIDDLE OF CONSTRUCTION.
OUR TALLY IS JUST GOING TO BE DOWN.
ONE OF THE THINGS WE'VE BEEN TALKING ABOUT WITH THEM IS POSSIBLY EXTENDING THIS A COUPLE OF MONTHS.
WE HAVEN'T BROUGHT THIS TO THE BOARD, BUT MAINLY BECAUSE WE'RE IN THE MIDDLE OF A LOT OF THINGS.
I'M IN THE MIDDLE OF THREE DIFFERENT NON DISCLOSURE AGREEMENTS, TWO WITH CRUISE LINES.
ACTUALLY, A THIRD CRUISE LINE WANTS TO DISCUSS EXPANSION IN THEIR CURRENT SPACE.
THEN THE CARGO BUSINESS IS, WHAT WE'VE ASKED THEM TO REALLY FOCUS ON AND COMING UP WITH, THIS IS REALLY HOW THEY LOOK AT IT, WHAT TRADE ROUTES WE'RE IN, WHAT COMMODITIES CAN BE BROUGHT TO GALVESTON AND WHERE THERE'S A MARKET, AND THEN WHAT'S ALSO COME UP IN JUST RECENTLY IS THIS IDEA WITH THE RAILROADS AND THE RAILROADS HAVE APPROACHED ME ABOUT EXPANDING THEIR ROLE HERE IN GALVESTON.
ALL THESE THINGS ARE ADDED TOGETHER AND THEN WE'RE ALSO
[00:05:05]
UNDER AN NDA ABOUT SOME POTENTIAL BUSINESS ON PELICAN ISLAND, WHICH IS A GAME CHANGER FOR THE PORT OF GALVESTON. IT REALLY IS.>> YEAH, AND THE CITY, AND FOR EVERYBODY INVOLVED AND FOR THE STATE.
WE'RE WANTING TO SEE HOW THAT UNFOLDS SO THAT WE CAN THEN ACTUALLY START THIS NEXT MASTER PLAN FROM WHAT WE KNOW RATHER THAN START IT OUT AND THEN A MONTH, MAKE CHANGES.
I'VE DISCUSSED THIS WITH WITH THEM.
WE HAVEN'T DISCUSSED WITH THE BOARD YET, BUT I'M HOPEFUL THAT WE'LL GET.
IT MIGHT MAKE A LOT OF SENSE FOR US TO EXTEND THIS PAST THE END OF JUNE.
JUNE WAS THE DATE THAT WE WERE GOING TO GET IT IN, MAYBE JUNE OR JULY, JUST SO WE'LL HAVE MORE INFORMATION THAT WILL REALLY PLAY INTO THE FUTURE OF THE PORT.
WE HAVE A LOT OF RESEARCH AND STUFF THAT, OBVIOUSLY BA KNOWS THE CRUISE BUSINESS, AND SO THEY'VE LOOKED AT THE BUSINESS, THEY'VE TALKED TO THE CRUISE LINES THEMSELVES, AND THERE'S A LOT OF EXPANSION GOING ON.
WHAT CAME OUT OF THE PRELIMINARY CONVERSATIONS WITH BA WAS THAT THEY'RE FOCUSING ON GALVESTON BECAUSE THEY CAN NO LONGER EXPAND IN MIAMI.
THERE'S NO MORE SPACE OVER THERE.
THEY'VE GOT A PLACE FOR ONE MORE EXPANSION, PROBABLY IN CANAVERAL.
EVERGLADES CANNOT EXPAND BECAUSE THEY'RE LIKE MIAMI, THEY'RE LANDLOCKED AND THEY'RE SURROUNDED BY REEFS, AND YOU'RE NEVER GOING TO SEE ANYBODY BUILD ANYTHING ON TOP OF A REEF.
THIS IS THE FOCUS AND THIS IS THE MESSAGE THAT WE GOT FROM VA LAST WEEK AND THE NUMBERS, THEY'VE COME UP WITH SOME NEW NUMBERS.
WE USED TO SAY 30 MILLION PEOPLE WITHIN EIGHT HOURS, NOW THEY'RE SAYING 40.
THEY WENT OUT AND DID A LOT OF RESEARCH AND LITERALLY LOOKED AT ALMOST COUNTY BY COUNTY WITHIN AN EIGHT-HOUR.
THEY'VE SHOWN US UP CLOSE A SCATTER MAP OF ALL THIS.
IT JUST POINTS TO THE FACT THAT IF WE WANT THE BUSINESS, IT'S HERE FOR US.
THIS IS WHY I KNOW THAT THE CRUISE LINES ARE SPENDING OVER $200 MILLION ON THE WESTERN CARIBBEAN BECAUSE THEY SEE THAT AS THEIR GROWTH.
THAT'S WHY THEY'RE EXCITED ABOUT THIS AREA HERE, BUT HERE AGAIN, WE'RE SPIT RIGHT NOW.
THE BOTTOM LINE IS THE PORT HAS UNDERTAKEN SOME PRETTY LARGE PROJECTS AND UTILIZING A LOT OF OUR CASH FLOW.
>> ROGER, A COUPLE OF THINGS, EXCUSE ME.
>> I THINK WILLY HAS SOMETHING AFTER YOUR COMMENTS, AND THEN I WOULD LIKE MAYBE JEFF TO COMMENT THE ONE THING WE LEFT OUT WAS THE BATTLESHIP, TEXAS, AND THE WORK THIS COMMITTEE HAS DONE.
ALSO, LATER ON, ROGER, IF YOU COULD TALK ABOUT THE FUNDING THAT'S IN THE BILL IN DC FOR THE DREDGING.
BUT MAYOR, GO AHEAD, I'M SORRY.
>> NO PROBLEM. JUST REAL QUICKLY, COULD YOU EXPLAIN WHO VA IS? SOME PEOPLE MAY NOT KNOW.
THEY'RE HISPANIC NAMES, BUT THEY ARE THE ARCHITECTURAL AND ENGINEERING FIRM THAT HAS DONE A LOT OF WORK FOR US, DID THE LAST MASTER PLAN, AND HAS DESIGNED THE LAST THREE CRUISE TERMINAL UPGRADES AND OR CONSTRUCTION.
>> I THINK WILLY HAD A QUESTION.
>> ONE MORE QUESTION. EXCUSE ME VIC.
COULD YOU UPDATE US, ROGER, WHERE WE ARE ON THE CURRENT MASTER PLAN, WHERE WE ARE WITH CREWS AND CARGO AND HOW WE'VE SATISFIED SOME OF THOSE THINGS IN THE CURRENT MASTER PLAN?
>> WELL, YEAH, CERTAINLY, AND THEN OBVIOUSLY, FROM A CARGO STANDPOINT, THE MASTER PLAN CALLS FOR FILLING IN THREE SLIPS, BUILDING NEW BERTHS ACROSS THE WATERFRONT.
WE'RE DOING THAT RIGHT NOW WITH TWO BERTHS.
WE ARE UNDER CONSTRUCTION WITH THE MONEY WE RECEIVED FROM TXDOT, WHICH WAS TOTAL 42 MILLION, BUT WE GOT 36 MILLION THAT WENT INTO THE WEST END.
IF YOU'D LIKE TO, I ALWAYS INVITE PEOPLE TO COME OUT.
IT'S A LOT EASIER TO SEE IT THAN FOR ME TO EXPLAIN IT, BUT WE'RE BUILDING.
THEY'RE POURING PILINGS NOW OUT THERE SO THAT THEY CAN PUT IN THE WALLS, AND SO THEY'VE DONE A LOT OF DEMOLITION.
WE'RE ANTICIPATING FIRST QUARTER, SECOND QUARTER NEXT YEAR FOR THAT BEING DONE.
[00:10:01]
THAT BEING SAID, THE MASTER PLAN CALLS FOR THE INTERNAL ROAD NETWORK AND ALL THAT, AND THAT'S BEEN DONE.WE'RE GETTING READY TO BRING TO THE BOARD THAT I THINK WE ALREADY HAVE TALKED ABOUT THE CONTRACTS FOR THE LAST PHASE OF THE INTERNAL ROAD NETWORK THAT RUNS THROUGH THE COMMERCIAL AREA.
THAT'S ALMOST THE FINAL PHASE OF THE INTERNAL ROAD.
BUT THE CARGO BUSINESS, WE'RE NOT THERE ON THE CARGO BECAUSE WE STILL HAVE A THIRD BERTH THAT HAS TO BE FILLED, AND WE ACTUALLY WILL BE BUILDING THE THIRD SLIP THAT MUST BE FILLED, AND THEN WE'RE GOING TO BE BUILDING THE WALL IS BEING BUILT NOW ACROSS THAT THIRD SLIP.
WE STILL HAVE THAT TO GO, BUT WE'RE WELL UNDERWAY ON THAT.
THE MASTER PLAN IS WE FOLLOW THAT, AND WE'RE STILL BEHIND, I WOULDN'T SAY WE'RE BEHIND BECAUSE WE'RE AHEAD, BUT IT'S JUST DEPENDENT ON THE BIG MONEY FOR US TO BE ABLE TO FINISH THAT THIRD SLIP.
>> I THINK WILLY IS NEXT, BUT I WOULD JUST REMIND THE COUNCIL AND THE WHARVES BOARD THAT WHEN THE 2019 PLAN WAS ADOPTED, IT DIDN'T CONTEMPLATE THE GRAIN ELEVATORS BEING DOWN AND EVEN THOUGH IT'S NOT PORT PROPERTY, LT AND T NOT BEING THERE ANYMORE.
THERE'S BEEN A LOT OF CHANGES IN THE SIX YEARS OTHER THAN WHAT THE PORT HAS DONE.
MAYOR, IF WILLY COULD GO AND [OVERLAPPING]
>> WE HAVE COUNCILWOMAN ROBB AFTER YOU FINISH.
>> EXPANDING ON THAT, WHEN THE INITIAL MASTER PLAN, ALSO, THERE WAS A DIFFERENT ADMINISTRATION IN OFFICE.
WILL THE PAUSE ALSO HELP BECAUSE THERE'S TALK ABOUT TARIFFS AND WHAT THAT'S GOING TO DO TO PORT BUSINESS AND CARGO? DOES THIS PAUSE HELP GIVE THAT TIME TO SIMMER AND FIGURE OUT WHAT'S HAPPENING THERE AS WELL?
>> WELL, WE'VE BEEN TALKING ABOUT THE TARIFFS.
>> WE'RE JUST NOT IN THAT BUSINESS, SO TO SPEAK.
THE KIND OF CARGO AND STUFF WE BRING INTO THE PORT OF GALVESTON IS NOT REALLY SUBJECT TO TARIFF.
NOW, THERE IS, AND I SPOKE TO THE BOND BUYERS GROUP NOT TOO LONG LAST MONTH, AND AS I TOLD THEM, IT'S IN FLUX.
AT THIS STAGE OF THE GAME, WE'VE LOOKED AT IT, WE HAVE MAYBE ONE SHIP THAT IS MADE IN CHINA, ONE WHICH WHICH WAS SUBJECT TO SOME OF THE EARLY TARIFFS, AND THAT SHIP IS CARRIED RORO, AND WHAT THEY'RE DOING IN THE UNITED STATES, AND YOU MAY HAVE READ ABOUT THIS, BUT THEY'RE CHANGING UP SHIPS.
THEY'RE JUST BRINGING IN THE SHIPS THAT AREN'T MANUFACTURED
>> IT'S NOT AS MUCH OF A VARIABLE IN OUR MASTER PLAN.
>> YEAH, IT'S NOT MUCH OF A VARIABLE REALLY, TO BE HONEST WITH YOU.
WHAT WE HAVE TO DO TO THE MASTER PLAN IS, WE HAVE TO GET THIS THING DONE SO WE HAVE THE LEVERAGE TO BRING IN THE STEVEDORES THAT THEY'RE ALL WAITING IN THE BACKGROUND TO REALLY RUN THE WEST END OF THE PORT FOR US.
ACTUALLY, ANOTHER ONE HAS JOINED UP, AND SO THERE'S GOING TO BE A LOT OF ACTIVITY HERE ONCE WE GET THOSE TWO SLIPS FILLED.
THEY'RE WILLING TO TAKE THAT. PLUS WHICH GIVES US ABOUT 14 ACRES ADDITIONAL.
THEN AS VIC SAID, THE GRAIN ELEVATOR COMING DOWN GIVES US ANOTHER 20 ACRES ALMOST IN THERE.
THAT'S PART OF WHAT WE'RE LOOKING AT IN THE MASTER PLAN IS, WHAT DOES THAT AREA LOOK LIKE? I'VE ASKED THEM TO FOCUS HERE AGAIN ON PELICAN ISLAND.
WHERE CAN WE GO WITH PELICAN ISLAND?
>> JIM AND JEFF, JUST TO CUT YOU SHORT THERE.
>> ROGER, JUST FOR PERSPECTIVE FOR COUNCIL, WHAT'S THE COST FOR US TO FILL ONE OF THOSE SLIPS ROUGHLY?
>> ROUGHLY, IT'S PROBABLY 30 MILLION.
>> THAT INCLUDES THE BERTH AND REALLY DIVIDE IT UP BECAUSE WE'RE BUILDING A LONGER BERTH.
BUT EACH ONE OF THE BERTHS, IF YOU LOOK AT IT FROM A [OVERLAPPING].
>> BULKHEAD AND THE SLIP AND THE MATERIALS.
THE MATERIALS WILL COST 50 MILLION. THAT'S A GOOD DEAL.
>> IS THAT FILL OR IS THAT MOSTLY JUST THE STRUCTURAL FOR THE BULKHEADS?
THAT'S FILL ALL THE WAY TO THE POINT WHERE WE'LL BE ABLE TO SUPPORT CRUSH ON IT.
THEN ONCE THAT GETS PACKED DOWN, THEN WE'LL BE ABLE TO PUT BLACKTOP ON IT.
IT WILL BE PROBABLY A YEAR OR SO BEFORE WE'RE ABLE TO PUT CONCRETE ON IT BECAUSE, REALLY THE SEASON HAS TO SETTLE.
[00:15:02]
WHICH IS THE FURTHEST WEST PIER, HAS BEEN CONCRETED.WE DID THAT PROJECT OURSELVES WITH OUR OWN CASH FLOW FROM THE PORT.
WE SPENT NINE MILLION DOLLARS ON THAT PROJECT, AND THAT'S ALMOST COMPLETE.
IF YOU GO AFTER HIM, WE SEE PIER 41, WHICH THIS PIER RIGHT HERE, WHICH REALLY IS COMPLETELY REDONE NOW WITH CONCRETE.
THAT'S GOING TO ALLOW US TO CONTINUE TO MOVE CARGO.
>> YOU BLACKTOP AND THEN LET IT SETTLE AND THEN BREAK IT OUT?
IT JUST NEEDED TO BE RENOVATED.
WHEN THEY DO THE CONCRETE, THEY COME IN AND TAKE UP THE OLD STUFF AND POUR ABOUT SIX INCHES OF CONCRETE WITH REBAR, AND SO IT'S A WHOLE NEW SURFACE OUT THERE.
>> BUT YOU BLACK TOP IT TO LET IT SETTLE A LITTLE BIT?
>> NO, THAT WE DIDN'T HAVE TO BECAUSE THAT WAS NOT A FILL.
>> SORRY. IT'S THE NEW FILL, YOU HAVE TO TOP IT.
>> SPECIFICALLY FOR THE NEW FILL, YOU BLACK TOP IT TO MAKE A SURFACE, AND LET IT SETTLE, AND THEN YOU CAN CONCRETE?
>> THESE ARE TWO SEPARATE PROBLEMS; [OVERLAPPING] ONE OF THEM IS TEXT STOP, ONE OF THEM IS SPEED BUMP.
>> IGNORE USING THE GRAIN [INAUDIBLE]
>> TO THE EXTENT WE CAN, BECAUSE ONE OF THE THINGS WITH THE DEMOLITION OF THE GRAIN ELEVATOR, AND WE HAD TO GO DOWN, I WANT TO SAY FOUR OR FIVE INCHES BELOW THE SURFACE, JUST TO CLEAN ALL THAT UP, THERE ARE SOME OLD FOUNDATIONS.
I WOULD SAY SOME OF THAT CRUSH WILL BE USED TO BRING THAT BACK TO LEVEL GROUND.
WE DO NOT HAVE ANYTHING IN THE BUDGET TO PAVE THAT.
THE BERTH IS IN PRETTY GOOD SHAPE.
I WAS OUT THERE LATE LAST WEEK WITH YOUR GROUP, AND IT WAS LOOKING BAD.
WE'RE BEATING IT UP PRETTY HEAVILY BECAUSE WE'RE USING IT SO MUCH, BECAUSE IT IS THE MAIN BERTH.
THE BERTH ITSELF IS OKAY, IT JUST LOOKS BAD.
THE RAILINGS AND EVERYTHING ARE BROKEN BECAUSE THEY'RE GETTING BEAT UP.
I'M EXCITED. YOU GO OUT THERE AND SEE IT.
WE'RE BUILDING WALLS, WE'RE POURING PILINGS OUT THERE, AND THE STEEL IS HERE.
WHEN WE STARTED WITH THE MASTER PLAN, WE HAD EXHAUSTIVE CONVERSATIONS ABOUT WHO BA WOULD BE INTERVIEWING AROUND THE COMMUNITY.
ONE GROUP WAS CITY COUNCIL AND CITY MANAGEMENT. HAS THAT BEEN DONE?
>> THAT HAS NOT BEEN DONE YET.
OUR BOARD HAS BEEN INTERVIEWED, I THINK WITH EXCEPTION OF YOU.
THAT'S WHAT'S COMING UP HERE IN THE NEXT COUPLE OF WEEKS.
>> THEY WANTED TO GET THEIR BASELINE PUT TOGETHER ON WHAT THAT'S GOING TO LOOK LIKE, AND AT THE LEAST, THE RESEARCH BEING DONE. I THINK THAT'S WHERE IT IS.
>> I JUST WANTED TO MAKE SURE WE PUT IT ON THEIR RADAR SCREEN THAT THAT OPPORTUNITY HAS COME WHERE THEY CAN MAKE THEM. [OVERLAPPING]
>> THEY'VE CERTAINLY OFFERED. THEY'D BE GLAD TO DO IT.
THEY WANT TO COME IN AND GET EVERYBODY'S IDEAS, AND RIGHT NOW, THAT JUST WAS A ONE-DAY VISIT IN.
LET'S SEE WHERE WE ARE, SO WE SEE WHERE WE'VE GOT TO GO.
>> WE HAVE ANOTHER COUNCILMEMBER HERE.
>> WHICH WORKS BEST FOR YOUR ARM?
>> WHICHEVER ARM. [BACKGROUND]
WE HAVE COUNCILMEMBER BEAU RAWLINS HAS JOINED US.
BEAU, ARE YOU DOING OKAY? [LAUGHTER] DON'T ANSWER THAT QUESTION.
>> GLAD TO HAVE YOU HERE THIS MORNING. VERY GOOD.
>> WELL, I THINK SHEILA HAS HAD HER HAND UP.
>> SURE. YOU MADE THAT COMMENT, WE'RE SPENT.
CAN YOU ELABORATE ON THAT BECAUSE THERE ARE SO MANY OPPORTUNITIES THAT THE PORT HAS KNOCKING ON ITS DOOR RIGHT NOW, BUT THE MONEY IS NOT THERE.
>> SURE. I'VE ALWAYS TALKED ABOUT MAKING SURE WE MAINTAIN RESERVES.
THIS YEAR ALONE, WE HAVE SPENT PRETTY MUCH ALL OF OUR RESERVES WITH MATCHING THE TEXTILE PROJECT.
THEN ALSO, WE'RE HAVING TO PAY OUT OF POCKET THE WHOLE FEMA PROJECT.
THAT IS EXHAUSTING OUR RESOURCES.
OUR PROJECTIONS ARE WE SHOULD END UP THE YEAR WITH ABOUT 10 MILLION, WHICH TO ME IS AN UNCOMFORTABLE AMOUNT, BUT I THINK WE'RE STILL CONTINUING THE CASH FLOW ON A MONTHLY BASIS, BUT WE'RE SPENDING THAT.
WE'RE INVESTING THAT INTO THE PORT ALL OVER THE PLACE, INFRASTRUCTURE.
[00:20:08]
LUCKILY, THE CRUISE TERMINAL IS ALMOST COMPLETE.IT'LL BE DONE IN NOVEMBER, AND THAT WAS 100% FROM BORROWED FUNDS.
>> THAT ALSO, ROGER, YOU MIGHT MENTION, THE BOARD CURRENTLY DOES NOT HAVE A POLICY FOR OPERATIONAL RESERVES.
I THINK WE'RE GOING TO LOOK AT THAT AS WE'RE COMING UP.
WHEN HE SAYS 10 MILLION, WE STILL NEED TO LOOK AT THIS OPERATIONAL RESERVE SITUATION THAT WE'LL BE DISCUSSING ALSO.
>> WE HAVE THAT SERVICE OF ABOUT 18 MILLION STARTING IN '26.
THE GOOD THING IS WE DO PAY OFF ONE OF THE 2013 DEBTS IN THE FIRST QUARTER OF '16, WHERE IT WOULD BE ABOUT ALMOST 20 MILLION. [OVERLAPPING]
>> THAT WAS FOR THE EXPANSION OF TERMINAL 28, I THINK.
>> YES. I WOULD SAY, HERE AGAIN, AND I DON'T KNOW IF THIS IS A GOOD TIME TO TALK ABOUT IT, BUT I SPENT A LOT OF TIME IN AUSTIN THIS SPRING.
>> [LAUGHTER] SORRY. I DON'T KNOW IF THAT'S A GOOD TIME TO TELL US A GOOD JOKE.
>> WELL, HERE AGAIN, WHAT WE'RE SEEING ON BOTH SIDES IS 200 MILLION COMING TO THE PORTS, AND WE HAVE RECEIVED SOME PRELIMINARY RANKINGS FOR THE ALMOST 200 PROJECTS THAT ARE AFTER THAT MONEY.
THE PORT AUTHORITY ADVISORY COMMITTEE MEETS IN JUNE FOR A TWO-DAY MEETING WHERE WE WILL TALK ABOUT THE PROJECTS AND ALLOCATE THOSE FUNDS.
THIS IS WHERE WE GOT THE 46 MILLION LAST YEAR FROM.
WE GOT A LITTLE BIT OVER 25% BECAUSE REALLY, WHAT IT'S GOING TO COME DOWN TO IS WHICH PORTS CAN AFFORD TO MATCH.
THIS IS WHAT WE'VE SEEN IN THE PAST IS THE REASON, BECAUSE WE WERE SITTING ON SOME PRETTY GOOD RESERVES WHEN THE LAST GO-AROUND CAME OUT, SO WE WERE ABLE TO FUND, OUT-OF-POCKET, THE RESERVES THAT WERE NEEDED, THE MATCHING FUNDS THAT WERE NEEDED.
I THINK, TO YOUR POINT, WE DO HAVE ALL OF OUR DEBT SERVICE RESERVED.
THIS IS MONEY THAT WE PUT ASIDE, THAT WE TOOK OUT OF CASH FLOW AGAIN.
WE TOOK THE RESERVE FOR THE FIRST DEBT OFFERING, AND THE SECOND DEBT OFFERING, WE TOOK THOSE PROCEEDS OUT OF THE DEBT OFFERING.
WE'RE FULLY RESERVED ON BOTH OF OUR OFFERINGS.
THERE'S ABOUT ALMOST $19,000,000 SITTING IN THE BANK, WHICH WE DO GET INTEREST ON, BUT THE INTEREST HAS TO GO AGAINST THE DEBT.
>> I'M GOING TO MAKE A COMMENT HERE.
I WAS ABLE TO, LAST WEEK, THANKS TO ROGER, GET A NUMBER OF THE H-GAC BOARD MEMBERS WHO COINCIDENTALLY HAPPENED TO SIT ON THE TPC, AS WELL, WHICH IS THE TRANSPORTATION POLICY COMMITTEE, AND MY ULTIMATE GOAL OF GETTING THE FUNDING FOR PELICAN ISLAND BRIDGE.
AS WE DROVE OVER, I ALWAYS SAY, BLESS YOURSELF, WE HAD TO PRAY THAT NOTHING HAPPENED.
PEOPLE WERE VERY IMPRESSED WITH EVERYTHING.
WE DID A COMPLETE TOUR, AS COMPLETE AS YOU CAN DO IN I THINK 45 MINUTES.
WE DID A COMPLETE TOUR OF THE PORT.
I WAS IN ANOTHER MEETING YESTERDAY AFTERNOON, HAVING TO DO WITH THE PELICAN ISLAND BRIDGE, AND ONE THING WE HAVE TO KEEP REMINDING PEOPLE IS THE PORT IS 200 YEARS OLD, BECAUSE THEY FORGET THAT.
THEY FORGET THAT THE PORT WAS HERE BEFORE TEXAS WAS HERE.
I ALWAYS TRIED TO GET PEOPLE TO LOOK AT GALVESTON DIFFERENTLY THAN OTHER CITIES BECAUSE WE ARE DIFFERENT. WHAT ARE WE? THE SECOND CITY IN TEXAS, I THINK? EVERYONE WAS IMPRESSED, AND ACTUALLY, KEVIN COLE TALKED ABOUT IT YESTERDAY AND THIS MORNING.
>> THIS PORT, AS WE'VE TALKED ABOUT, DOES NOT GET TAX MONEY.
THIS PORT IS ONE OF THE FEW PORTS THAT DOESN'T RECEIVE PUBLIC MONEY REALLY TO RUN THIS PORT.
IT'S AN ENTERPRISE OPERATION OUT THERE THAT WE HAVE, AND AS EVERYONE KNOWS THAT HAS FOLLOWED THE PORT, NOT TOO MANY YEARS AGO, THIS PORT WAS STRUGGLING.
NOW WE'RE MOVING FORWARD WITH THINGS.
ROGER, COULD YOU EXPAND A LITTLE BIT TO [BACKGROUND] WHERE WE ARE WITH THE CRUISE LINES,
[00:25:01]
AND WE'VE MAXED OUT.WE HIT ALL OF OUR GOALS FOR THE CURRENT, IS THAT RIGHT?
>> ACTUALLY, WE'RE ON THE FOURTH TERMINAL NOW, WHICH WAS SCHEDULED FOR 2031.
THAT'S GOING TO BE IN PLAY HERE IN NOVEMBER WITH MSC COMING IN, AND NORWEGIAN WILL BE COMING IN PART-TIME FOR THE FIRST COUPLE OF YEARS.
WE'RE GOING TO HAVE SOME PLACE THERE.
THE ISSUE WITH THAT IS THAT THERE'S A LARGE CAPITAL COST RECOVERY FEE ASSOCIATED WITH THAT TERMINAL, JUST IN COMPARISON FOR THE MONEY THAT WE PUT INTO CRUISE TERMINAL 25 FOR THAT RENOVATION, THERE'S A THREE-DOLLAR CAPITAL COST RECOVERY PER PASSENGER IN THAT.
IN THE MSC TERMINAL 16, THERE'S A $10 CAPITAL COST RECOVERY PER TURN.
THAT MAKES IT UNATTRACTIVE TO OTHER CRUISE LINES TO COME IN HERE AND WANT TO PAY THAT.
LUCKILY, WE HAVE THE GUARANTEES FROM MSC TO BACK ALL THAT UP FROM A DEBT SERVICE AND A CAPITAL COST RECOVERY STANDPOINT.
THE CRUISE BUSINESS, AS I MENTIONED, THEY'RE EXPANDING EXPONENTIALLY DOWN HERE IN, WE CALL IT THE WESTERN CARIBBEAN.
THEY'RE PUTTING A LOT OF MONEY INTO THAT, AND BECAUSE OF THAT, DISNEY IS EXPANDING TO FULL-TIME HERE IN GALVESTON STARTING IN '27.
>> I BELIEVE WHAT THEY'RE PLANNING ON DOING IS BRINGING IN, THERE'S A NEW SHIP.
I DON'T KNOW IF YOU RECALL THE NEWS THAT THEY BOUGHT A SHIP OUT OF BANKRUPTCY, OUT OF A CRUISE LINE IN EUROPE, AND IT'S A BIGGER SHIP.
THAT'S WHAT THEY'RE TALKING ABOUT BRINGING HERE, IS THE BIGGER SHIP.
>> A LOT OF INTEREST IN FAMILIES COMING HERE.
>> A LOT OF INTEREST IN FAMILIES AND MSC IS CHANGING ITS METHODS TO ADD MORE FAMILY EVENTS ON THE SHIPS AND STUFF.
THEN ALSO, THERE'S ANOTHER CRUISE LINE WHICH WILL BE COMPLIMENTARY TO DISNEY, THAT I CAN'T SAY AT THIS STAGE, BUT WE ARE HOPING WILL BE TAKING UP ANOTHER.
THEY'VE ALREADY PUT IN SCHEDULES FOR ANOTHER 12 MONTHS.
WE STILL HAVE NOT GOTTEN INTO A CONTRACT WITH THEM, BUT WE'RE FAIRLY CLOSE FOR NEGOTIATING THAT TERM, THAT ADDITION.
THEN I WOULD MENTION THAT THERE'S AN EXPANSION THAT'S DESIRED AT CRUISE TERMINAL 10, WHICH WE, AS A PORT, CANNOT AFFORD.
IF YOU REMEMBER, CRUISE TERMINAL 10 IS A LAND LEASE, SO WE'RE ANTICIPATING, SUBJECT TO BOARD APPROVAL, THAT WE WOULD BUILD ANOTHER BERTH THERE AND THEY WOULD DO THE SAME PLAN WHERE WE DO A LAND LEASE.
I PUT IN FOR $100 MILLION TO BUILD A NEW TERMINAL, TO BUILD A NEW BERTH THERE IN THE TEXAS PLAN, BUT OBVIOUSLY, THAT ONLY WOULD HAVE WORKED IF WE'D BEEN AT THE ORIGINAL.
WE ORIGINALLY WERE ASKING FOR 900 MILLION, SO THAT WOULD HAVE ONLY WORKED THERE, BUT WE ENDED UP GETTING TWO, WHICH IS BETTER THAN WHAT WE USED TO GET.
IN TOTAL, WE WERE GETTING 240 MILLION, THE PORT'S WHEEL.
>> CAN YOU TALK ABOUT THE DREDGING, TOO?
>> BEFORE WE GO WITH THAT, I'VE GOT A COUPLE OF QUESTIONS.
[BACKGROUND] SHEILA, I APPRECIATE YOU TALKING ABOUT THE PORT SPEND, I HAD A COMMENT ON THAT AS WELL.
WHEN WE TALK ABOUT THAT YOU'RE AHEAD OF SCHEDULE BY SIX YEARS, BUT THE LAST MASTER PLAN WAS IN 2019, I DON'T DOUBT THAT THERE'S BEEN A LOT OF WORK GOING ON, BUT I JUST FIND IT INTERESTING THAT YOU PUT OUT THERE THAT IT'S SIX YEARS AHEAD, AND I'M NOT REALLY SURE.
>> THE PURE FACTS OF IT ARE THE ECONOMICS.
THE DEMAND FOR CRUISES OUT OF GALVESTON FAR EXCEEDED WHAT THE MASTER PLAN CONTEMPLATED IN 2019.
>> YOU MIGHT HAVE MENTIONED DEL MONTE.
>> I APPRECIATE THAT. RELATED TO CARGO AND THE FILLING OF THE THREE SLIPS, TWO BERTHS ARE UNDER CONSTRUCTION.
WHAT'S THE TIMING ON THE THIRD ONE? COULD YOU HAVE THAT YET?
>> I DON'T HAVE TIMING ON THE THIRD.
>> WE'RE ASKING FOR 30 MILLION A DAY, AND WE CAN DO THAT. [LAUGHTER]
>> I GOT YOU. NOT CURRENTLY BEING CONTEMPLATED.
IT ENDED UP BEING ON THE MASTER PLAN, BUT YOU DON'T HAVE A DATE ON IT?
>> THEN ALSO, MAYOR, YOU SAID THE PORT DOESN'T GET ANY PUBLIC MONEY, AND I THINK TO CLARIFY, I THINK THAT NEEDS TO BE THAT THEY DON'T GET ANY LOCAL TAX MONEY.
[00:30:01]
THEY DO RECEIVE STATE AND FEDERAL FUNDING.>> I WANTED TO MAKE SURE BECAUSE THE PORT BENEFITS THE ENTIRE STATE AND THE NATION.
RELATED TO THE DELAY OF ONE MONTH FOR A MASTER PLAN, I THINK YOU'RE SPOT ON.
AT SOME POINT, YOU DO HAVE TO DRAW A LINE IN THE SAND AND SAY, YES, YOU HAVE THIS BASELINE DATA, THIS IS WHERE YOU'RE GOING FORWARD.
YOU'LL ALWAYS BE IN NEGOTIATIONS WITH DEALS HERE AND THERE.
>> RIGHT. A FOUR-WEEK DELAY SEEMS REASONABLE TO MAKE SURE THAT YOUR CONSULTANTS HAVE THE BASELINE INFORMATION THAT THEY NEED SO THAT YOU CAN PUT TOGETHER A MASTER PLAN THAT REFLECTS CURRENT, AS BEST POSSIBLE, MARKET CONDITIONS.
>> THEY HAVE NOT ASKED FOR THAT. [OVERLAPPING]
>> THEY HAVE NOT ASKED FOR THAT?
>> THEY HAVE NOT ASKED FOR IT.
THIS IS MY THOUGHT PROCESS BECAUSE I KNOW THINGS THAT ARE HAPPENING THAT WE WOULD PROBABLY WANT TO GET IN THE BASELINE.
>> I'D JUST LIKE TO ADD TO THE TRUSTEES, WE'RE IN AN AWKWARD POSITION BECAUSE OUR TRUSTEE MEETING IS NEXT TUESDAY, WHERE WE WOULD NORMALLY GET THESE UPDATES, SO THE TIMING IS A LITTLE AWKWARD FOR US TODAY. [OVERLAPPING]
>> I SEE EVERYTHING HAD A PLAN. [LAUGHTER]
>> [OVERLAPPING] IT'S A GOOD PROBLEM TO HAVE.
>> THANK YOU. NOW, PLEASE CONTINUE ON TO DREDGING IN BATTLESHIP, TEXAS.
>> I GOT ONE MORE MASTER PLAN QUESTION. [LAUGHTER]
>> I WOULD LIKE TO ADD OR TAG ON TO JIM'S COMMENT ABOUT PUBLIC ENGAGEMENT AND GET YOU, IF YOU WOULD, PLEASE TO DESCRIBE A LITTLE BIT ABOUT WHAT PUBLIC ENGAGEMENT PART OF THIS WOULD BE.
FROM THE SCOPE OF WORK, IT SAYS THAT YOU WOULD RECOMMEND THE DEVELOPMENT OF AN ADVISORY TEAM THAT WOULD PLAY A DEFINING ROLE AND THAT WOULD BE INVOLVED IN KEY WORKSHOPS AND DECISION MAKING PROCESSES THROUGHOUT THE UPDATE.
SUGGESTIONS FOR THE MAKEUP OF THE ADVISORY BOARD COULD BE KEY MEMBERS OF THE CITY, COMMUNITY, PORT STAKEHOLDERS, TOURISM, [INAUDIBLE] BOARD AND PORT MANAGEMENT.
JUST FOR THE PEOPLE THAT ARE WATCHING OUT THERE, SO THEY'LL UNDERSTAND WHAT PUBLIC ENGAGEMENT WE'RE GOING TO HAVE IN THIS PROCESS.
>> THERE'LL BE A SERIES OF TWO PUBLIC MEETINGS FOR ONE.
THE PLAN WAS LAST WEEK WHEN THEY WERE HERE TO COME BACK IN TWO WEEKS TO ENGAGE THE BOARD AND TO HAVE SET UP MEETINGS.
THE SCHEDULE HAS, IF YOU LOOK AT THE SCOPE OF WORK IN THE SCHEDULE ATTACHED TO THAT DOCUMENT, IT POINTS OUT DATES, IT POINTS OUT DIFFERENT MEETINGS.
WE'VE MET WITH ALL OF OUR TRUSTEES AND THEY'VE GIVEN THEIR INPUT.
RIGHT NOW WE'RE GETTING CLOSE TO THIS BASELINE AND SO I WOULD SAY OVER THE NEXT SIX WEEKS OR SO AND I DON'T WANT TO BE HELD TO FOUR WEEKS.
>> BECAUSE I KNOW YOU TAKE NOTES THERE AND I DON'T WANT TO BE HELD TO FOUR WEEKS IF IT TURNS THAT WE WANT TWO MONTHS.
I THINK THAT IF IT MAKES A LOT OF SENSE, OBVIOUSLY, THIS CAN BE SUBJECT TO OUR BOARD'S APPROVAL, BUT THESE MEETINGS WILL BE COMING AND THEY ARE NOT PLANNED YET.
BUT IT'S CERTAINLY ON THE RADAR, WE'RE HAVING CONVERSATIONS WHO WE NEED TO INCLUDE IN THOSE TYPE OF THINGS ALSO.
WE DID THIS LAST TIME, BUT LAST TIME WE SET UP IN THE CRUISE TERMINALS.
YOU MAY HAVE BEEN THERE WHEN WE SET UP DIFFERENT STATIONS THAT ARE DIFFERENT PARTS OF THE MASTER PLAN AND PEOPLE CAME AND LOOKED AND ASKED QUESTIONS AND THOSE THINGS.
>> HAVE YOU CONSIDERED THIS ADVISORY TEAM YET THAT'S MENTIONED IN THIS?
>> ROGER WANTED TO MAKE SURE, AS JIM MENTIONED TOO, THAT THE INTERVIEWS WITH THE COUNCIL MEMBERS, THAT DOESN'T TAKE PLACE AT A PUBLIC MEETING THAT WE HAVE.
THEY CONCENTRATE ON THE COUNCIL MEMBERS.
>> THAT'S WHAT WE DO TO OUR TRUSTEES, IT IS INDIVIDUALLY.
>>SIR, I'D LIKE A COUPLE OF THINGS.
FIRST, JIM'S GOT A COMMENT HE'D LIKE TO MAKE.
THEN WHEN WE ADOPTED THE CURRENT MASTER PLAN IN 2019, WE DIDN'T CONTEMPLATE THE BATTLESHIP, TEXAS BEING AND JEFF, OUR PAST CHAIRMAN, PATTERSON, HAS WORKED REALLY HARD WITH THIS COMMITTEE ON THE BATTLESHIP.
MAYBE JIM, YOUR QUESTION THEN MAYBE GET AN UPDATE FOR THE COUNCIL AND THE CITIZENS THAT ARE WATCHING AN UPDATE ON THE BATTLESHIP, TEXAS.
>> IT IS IN THE MASTER PLAN, THE BATTLESHIP.
>> THANKS, VICK. TWO THINGS, JUST TO BRING A CLARIFICATION TO THE FUND BALANCE RESERVE ISSUE.
ROGER MENTIONED WE HAD 19 MILLION.
THAT'S THEIR BOND COVENANT AND REQUIRED AND WE HAVE MET THAT.
THERE'S TWO OTHER RESERVES THAT WE'RE TALKING ABOUT IN AS WE DEVELOP OUR POLICY AND LOOK AT OUR CASH FLOW.
ONE IS OPERATIONAL RESERVES FOR AN ENTITY.
WE'RE ASSUMING THAT WE'RE NOT GOING TO CONTINUE PEAK CONSTRUCTION,
[00:35:03]
PEAK PROJECTS, LIKE WE'VE DONE THE LAST FOUR OR FIVE YEARS.THIS IS WHEN THINGS SETTLE OUT.
WE NEED SOMEWHERE BETWEEN 20 AND $25 MILLION FOR OPERATIONAL RESERVES.
WE FEEL IT'S PRUDENT TO HAVE AT LEAST ONE YEAR'S WORTH OF DEBT SERVICE AND ABOVE THE REQUIRED AMOUNT, SO THAT'S ANOTHER $20 MILLION.
ROGER SAID WE'VE GOT 10 MILLION.
REALITY THAT 10 MILLION'S SPENT BECAUSE WE'VE ALREADY ISSUED CONTRACTS ON IT SO WE'RE LOOKING AT $40 MILLION - $45 MILLION WORTH OF RESERVES TO BE SET UP.
BOB ON THE COMMITTEE, WE HAD DISCUSSIONS AT THE BOARD ABOUT THE ADVISORY COMMITTEE FOR THIS PROCESS AND THE BOARD DECIDED THAT WE WOULD BE THE ADVISORY COMMITTEE TO THE PROCESS.
BUT CERTAINLY WE HAD, LIKE I SAID, EXHAUSTIVE CONVERSATIONS ABOUT COMMUNITY INPUT, COUNCIL, ALL THE PLAYERS, TO MAKE SURE THAT THEIR INPUT WAS IN AND CONSIDERED AS WE DEVELOPED A NEW PLAN.
>> JEFF, WOULD YOU MIND GIVING AN UPDATE.
YOU-ALL HAVE MADE TREMENDOUS PROGRESS.
>> AS VICK SAID, IT WAS MENTIONED, THE BATTLESHIP, TEXAS WAS NOT IN THE ORIGINAL MASTER PLAN, SO THAT LOCATION AT PIER 15 AND JUST TO REFRESH, THERE'S A LOT OF DISCUSSION INITIALLY ABOUT PIER 20 AND ALSO PELICAN ISLAND.
WE WENT THROUGH A SERIES OF DISCUSSIONS AND IT WAS REALLY THE PILOTS AND THE COAST GUARD AND THE CORE THAT BASICALLY SAID WE'D REALLY RATHER NOT HAVE THIS THING AGAIN, PARALLEL TO THE CHANNEL BECAUSE THEY'VE MADE COMMENTS ABOUT THE DRILLING RIG MUSEUM IS RELATIVELY SMALL, BUT IT GETS IN THE WAY EVERY ONCE IN A WHILE.
YOU PUT A 500 VERSUS 78 FOOT LONG, THE THING THERE ALONG THE SHORE, THAT IT BECOMES A PROBLEM.
THAT AND JUST THE WHOLE STORM PROTECTION THING REALLY DROVE IT TO PIER 15.
I THINK ROGER MENTIONED SOME POTENTIAL, OTHER EXPANSION THINGS, BUT I THINK IT'S WORKED OUT WHERE THAT BIRTH BECAME A GOOD LOCATION FOR THE SHIP AND I THINK THE BATTLESHIP, TEXAS FOLKS ARE EXCITED ABOUT THAT.
WE TALKED ABOUT THE MASTER PLAN.
THE OTHER PART THAT WE HAVEN'T REALLY EXPLORED, IF YOU REMEMBER IN AROUND PIER 19 AND ON A LITTLE BIT TO THE EAST THERE, I COULD LOOK AT THE MAP OVER HERE, BUT THERE WAS A COMMERCIAL THAT ROGER CAN POINT TO THE [INAUDIBLE] OVER HERE, ON THE SIDE HERE, THAT WE TALKED ABOUT SOME POTENTIAL COMMERCIAL DEVELOPMENTS AND THINGS AROUND THAT AREA AND I THINK THE BATTLESHIP, TEXAS, NO PUN INTENDED, MAYBE BECOMES AN ANCHOR.
A PART THERE, WE'VE TALKED ABOUT IT ON THE REAL ESTATE COMMITTEE THAT THAT BECOMES MAYBE AN ANCHOR FOR PEDESTRIANS.
>> EXACTLY AND THE WHOLE BEAUTIFICATION THING.
PEOPLE COMING FROM PIER 19, 20 WALKING DOWN TO THAT AREA, IT BECOMES A SPOT THERE.
AGAIN, THE FORMAL THING IS WE OFFERED THAT LOCATION TO THE BATTLESHIP TEXAS FOUNDATION, AND THEY GRACIOUSLY ACCEPTED.
NOW, THE BIGGEST THING WE'RE LEFT WITH IS THE INSURANCE.
WORST CASE IS THE BATTLESHIP FLOATS [INAUDIBLE] IF YOU REMEMBER [INAUDIBLE] IT HAD THE MONOPILES, THAT HAD A COLLAR AND THERE'S A TOP TO THOSE MONOPILES AND IF YOU GET THE SHIP UP HIGH ENOUGH, IT CAN FLOAT OFF OF THOSE MONOPILES.
WHAT HAPPENS IF IT FLOATS OUT INTO THE CHANNEL AND SINKS? I KNOW ROGER WAKES UP IN THE MIDDLE OF THE NIGHT IN COLD SWEATS.
THAT'S THE DISCUSSION WE'RE HAVING.
TONY AND MR. BROWN HAVE BEEN HEAVILY INVOLVED IN THOSE DISCUSSIONS.
THAT'S THE DISCUSSION WE'RE HAVING ABOUT THE INSURANCE REQUIREMENTS AND REALLY WHAT'S AFFORDABLE.
YOU'VE GOT A CATASTROPHIC EVENT.
THE INSURANCE REQUIREMENTS, IS THAT TOO MUCH? WHAT DOES THAT COST THE BATTLESHIP? CAN THE BATTLESHIP TEXAS FOUNDATION AFFORD $50 MILLION LIABILITY POLICY? WHAT ARE THE OPTIONS THERE? STATE OF TEXAS, CAN THEY HELP WITH THAT? BUT THAT'S THE ONE STICKING POINT WE HAVE REALLY LEFT IS THE INSURANCE REQUIREMENTS.
I THINK MOST FOLKS AROUND THE TABLE WOULD SAY THIS IS A GREAT ATTRACTION FOR GALVESTON, IT'S A GOOD THING FOR THE COMMUNITY, BUT WE HAVE TO PROTECT THE PORT.
THAT'S THE ONE ISSUE WE'RE TRYING TO WORK THROUGH.
>> ONE THING I WOULD MENTION IS, JUST FOR REFERENCE, THIS IS WHAT OUR TENANT HERE IS CONSIDERING IS EXTENDING THIS AREA RIGHT THROUGH HERE FOR A NEW PIER FORCE, BECAUSE THEY WANT TO BE ABLE TO HANDLE TWO SHIPS HERE AT ONCE.
WHILE WE'VE SEEN SOME PRELIMINARY AND VA IS LOOKING AT THE EFFECTS OF THIS.
ALSO, IF YOU REMEMBER OUR ORIGINAL MASTER PLAN CALLED FOR THIS AREA RIGHT THROUGH HERE TO BE RETAIL, NON-PORT ACTIVITIES.
WHAT WE WOULD ANTICIPATE, AND WHAT WE'RE PUTTING IN THE MASTER PLAN WOULD BE A PARTIAL DECK
[00:40:01]
HERE TO SERVICE THESE TWO SHIPS RIGHT HERE.THEN, HERE AGAIN, THAT OPENS THIS UP.
THE OTHER THING IS, HOW DO YOU GET TO THE SHIP? I THINK THIS IS THE OTHER THING THAT STILL'S OPEN IS IF WE PUT THE SHIP IN HERE, IS THERE SOME CONSTRUCTION THAT HAS TO GO ON HERE? BECAUSE THE SHIP'S UP HIGH, SO YOU'RE GOING TO NEED SOME GANGWAY OR SOME WAY TO GET TO THAT SHIP.
TWO THINGS HAVE BEEN TALKED ABOUT.
ONE, PUT SOMETHING HERE ON THE DOCKS AND TWO, PUT SOMETHING ON THE SECOND FLOOR OF THE TERMINALS, BECAUSE THEN THAT PUTS YOU UP OFF THE GROUND.
THEN THERE'S ALWAYS GOING TO BE THE ISSUE OF WHEN A CRUISE SHIP IS IN THERE, WHAT USAGE, HOW CLOSE DO YOU WANT PEOPLE TO THE SHIP THAT IS SITTING THERE.
THOSE ARE TWO THINGS THAT BA WAS LOOKING AT ANALYZING BECAUSE WE'RE NOT PLANNING ON THAT BEING OUR RESPONSIBILITY.
>> WOULD IT MAKES SENSE TO FILL IT IN? PUT SOME DREDGE, FILL IT IN AND RAISE IT LIKE HOW THEY HAVE THE [INAUDIBLE]
>> IT WOULD MAKE A LOT OF SENSE, BUT THE COST.
>> PLUS THEY WANT IT IN THE WATER.
>> THEY WANT FLOATED AND THAT FLOATING IS GOING TO HAVE TO BE DREDGED FIRST.
>> YOU SERVE ON THE COMMITTEE AS WELL.
>> I HAVE AND WE HAVE BROACHED THAT SUBJECT.
THEY DON'T WANT TO TALK ABOUT IT. [LAUGHTER]
>> THE ANSWER IS THAT WE'RE RAISING CAPITAL. THAT'S REALLY THE ANSWER.
THEY'RE IN A CAPITAL RAISING MODE AND THEY'VE GOT TO RAISE SIGNIFICANT AMOUNT OF MONEY BECAUSE WE ACTUALLY HAVE REQUIRED THAT THERE BE AN ENGINEERING ANALYSIS OF THAT PIER RIGHT THERE BECAUSE RIGHT NOW, IF THEY IN FACT COULD TIE UP THEN THEY COULD TIE UP TO THAT.
WE GOT TO MAKE SURE IT'S STRUCTURALLY SOUND THERE BECAUSE THIS IS AN OLD STRUCTURE AND YOU MAY OR MAY NOT REMEMBER, BUT THESE STRUCTURES ARE PARTIALLY OVERWATER.
THAT TERMINAL, THE WHOLE APRON AREA, GET BACK ABOUT 20 FEET, UNDERNEATH THE TERMINAL IS OVERWATER.
THAT'S SOMETHING ANOTHER CONSIDERATION.
WE GOT TO GET IN THERE AND SEE.
THEN THERE'S BEEN SOME DIVERS DOWN ON THE BERTH SIDE BECAUSE OBVIOUSLY WE'RE GETTING READY TO PUT A TERMINAL THERE.
BUT WHAT WAS NOT ANTICIPATED IS THAT ON THAT BERTH ALONG THE SIDE THERE, WE'VE GOT TO MAKE SURE THAT THAT IS STRUCTURALLY SOUND, IF IN FACT IT BECOMES PART OF THEIR MOORING.
>> OUR POSTURE TO DATE HAS BEEN ALL THESE COSTS YOU'RE HEARING ABOUT.
THOSE ARE ALL ON THE BATTLESHIP, TEXAS.
[INAUDIBLE] AMOUNT OF MONEY TO ASSIST.
BATTLESHIP, TEXAS IMPROVEMENTS.
>> ANYBODY FROM THE CITY CAN ANSWER THAT BUT IS THAT WHERE THE?
>> THE OUTFLOW IS RIGHT THERE. [OVERLAPPING]
>> WE DON'T ANTICIPATE THAT SHOULD BE AN ISSUE.
>> THEY BATTLESHIP PEOPLE DON'T THINK IT'S AN ISSUE.
>> THE DREDGING ISSUE, I KNOW THAT WITH SAN JACINTO, THAT WOULD BE DREDGED TO GET OUT.
WOULD THAT BE PART OF ROUTINE DREDGING, OR WOULD THAT BE FACTORED INTO IT? I'D HATE TO HAVE THE SAME PROBLEM THAT WE HAD PREVIOUSLY.
>> WHAT WOULD BE INTERESTING IS IF THAT MATERIAL TESTED.
RIGHT NOW THERE IS NO SAND ON THE ISLAND AND WE COULD POSSIBLY DO A PRIVATE PUBLIC PARTNERSHIP IF IT IS BEACH QUALITY SAND BECAUSE EVERYONE IS LOOKING FOR SAND.
>> THAT'S BEEN DREDGED BEFORE.
I DON'T THINK THERE'S USABLE MATERIALS IN THERE.
>> THEY COULD PULL USABLE MATERIAL DOWN THE OTHER SIDE IF IT WORKED.
>> THAT WAS OUR VERSION THOUGH.
THIS IS OUR VERSION OF SOIL HERE.
THIS HAS BEEN DREDGED IN SILT, BEEN PICKED UP, AND THAT'S ANOTHER COST FOR THEM, THAT HAS TO BE DREDGED.
>> [OVERLAPPING] THEY'VE GOT TO DREDGE IT TO GET IT IN AND I THINK TO ROGER'S POINT, WE'VE TALKED ABOUT WHAT HAPPENS WHEN THE SILTS BACK IN AND THEIR COMMENT WAS THEY'RE NOT REALLY CONCERNED ABOUT THAT.
>> [OVERLAPPING] IF IN FACT THIS HAPPENS, THEN THERE'S GOING TO HAVE TO BE SOME ACCOMMODATIONS MADE ON THIS BERTH RIGHT HERE TO BE ABLE TO GET THE SHIP OUT OF THERE.
[OVERLAPPING] MY UNDERSTANDING IS THAT THERE IS A WAY TO DO THAT.
[00:45:01]
>> LET'S HAVE ONE CONVERSATION AT A TIME.
>> [OVERLAPPING] THAT CONCRETE SECTION.
>> BUT IT WOULD BE THERE THOUGH TO SERVE THAT ADDITIONAL CRUISE SHIP RIGHT THERE.
>> I THINK MARIE HAD A QUESTION, MAYOR.
>> I WAS JUST SAYING, I THINK THE PORT SHOULD GIFT US WITH AN UPDATED PHOTO OF THE PORT.
>> WE GOT TO BE CAREFUL WHEN WE DO IT BECAUSE THINGS ARE CHANGING SO FAST.
WE NEED TO WAIT A LITTLE BIT AND I'M NOT GOING TO GET INTO IT, BUT THIS CHANGE ON PELICAN ISLAND COULD BE A MAJOR GAME CHANGER.
>> MARIE, I THINK IT'S ONLY ABOUT TWO-YEARS-OLD.
>> [OVERLAPPING] IT'S DATED 2016.
>> [INAUDIBLE] THEY WANT TO [INAUDIBLE] TO US NEXT WEEK.
[INAUDIBLE] TO ME, IT'S A GAME CHANGER.
>> WE HAVE THE NEGATIVE SO WE SHOULD LOOK AT THAT.
WE HAVE THE NEGATIVES OF A NEW ONE, SO WE SHOULD LOOK AT [INAUDIBLE]
>> JUST TO WRAP UP THE BATTLESHIP TEXAS AND WHAT ROGER SAID, THAT'S THE OTHER ISSUE NOW IS WITH THE SHIP GOING IN PIER 15 IS WHERE DID THEY PUT THEIR TICKET BOOTH? IDEALLY, THEY'D HAVE SOME TICKET BOOTH AND MUSEUM.
AS ROGER SAID, WE'VE GOT TO OFFER THEM BECAUSE YOU'LL HAVE ACTUALLY SERVICE TRAFFIC ALONG HERE, EMERGENCY TRAFFIC.
THAT CAN'T BE BLOCKED, AND WE DON'T WANT TO REALLY HAVE A LOT OF PEOPLE WALKING ACROSS THERE.
WORKED A LITTLE BIT WITH OUR ENGINEERS AT THE PORT ABOUT WHAT COULD BE DONE ON TOP OF THAT BUILDING, OR DO THEY GO TO THE SOUTH THERE AND BUILD IT ON THE OPEN AREA.
I GUESS WE'RE LOOKING AT THAT ON THE OPERATING AGREEMENT.
THAT WOULD BE A SEPARATE BASIC CONDITIONS.
PRECEDENT WOULD BE WE WOULD WORK THAT OUT.
WE REALLY WANT TO GET THE OPERATING AGREEMENT FINALIZED BECAUSE THEY REALLY NEED THAT TO PUT A STAKE IN THE GROUND, BECAUSE THEY'VE GOT TO BE, OR THEY'RE LOOKING AT A LOT OF PRELIMINARY STUFF ON DREDGING, ON ENGINEERING EFFORTS, BUT IN BORINGS.
BUT UNTIL THEY GET ASSIGNED OPERATING AGREEMENT, THEY REALLY DON'T WANT TO COMMIT LARGE FUNDS.
>> SO I THINK I WANT TO RE-EMPHASIZE ANYTHING THAT HAPPENS TO BRING THAT SHIP IN THERE IS ON THEIR RESPONSIBILITY FINANCIALLY.
THE PORT, THE CITY IS NOT GOING TO BE OPEN TO ANY COMMITMENT FINANCIALLY ON THAT, WHICH IS GOOD.
>> MAYBE THE ONE FINAL THING. I ACTUALLY ATTENDED A WORKSHOP YESTERDAY FROM THE BATTLESHIP TEXAS FOUNDATION HOSTED BY THE BRYAN MUSEUM.
I DIDN'T REALLY KNOW WHAT TO EXPECT WHEN I WENT, BUT IT WAS A FACILITATED WORKSHOP FROM THE PARKS BOARD, VISIT GALVESTON, PEOPLE LIKE MARY JO NASCHKE, SOME HISTORIANS AND OTHER FOLKS WERE THERE.
BASICALLY, IT WAS HOW TO CONNECT THE BATTLESHIP TEXAS INTO THE CITY.
THEY WANT TO BECOME PART OF THE COMMUNITY AND HOW TO BEST REACH OUT TO DIFFERENT AUDIENCES AND STUFF.
THE ONE THING THAT CAME OUT OF THERE WAS THAT IF YOU THINK ABOUT THE THEME OF RESILIENCY, GALVESTON IS A VERY RESILIENT CITY, OBVIOUSLY.
YOU THINK ABOUT GREAT STORMS AND ALL THE OTHER TRIALS AND TRIBULATIONS OVER THE YEARS.
THE BATTLESHIP TEXAS IS VERY RESILIENT.
ACTUALLY IN VERACRUZ, MEXICO, WORLD WAR I, WORLD WAR II, AND IT ACTUALLY SURVIVED THE SOLE REMAINING DREADNOUGHT AND SHIP FROM WORLD WAR I.
THE BATTLESHIP TEXAS IS A RESILIENT THING.
THEY REALLY WANT TO FIND WAYS TO TIE THE BATTLESHIP TEXAS, THEME INTO THE COMMUNITY.
IT WAS A REALLY GOOD DISCUSSION.
>> I HAVE ONE HAVE ONE THING TO WHAT YOU'RE SAYING.
I THINK WAS ALSO THAT THE CRUISE LINES ARE WILLINIG TO PARTICIPATE.
THEY WILL PARTICIPATE NOT WITH WRITING CHECKS, BUT THEY WILL PARTICIPATE WITH BRINGING PASSENGERS TO THE [OVERLAPPING]
>> HAVE SIMPLE PROMOTING AND THINGS LIKE THAT
>> WE CAN WITHIN I'D HATE TO COMMIT TO A TIME FRAME, BUT WE'RE HOPING SOONER RATHER THAN LATER WE CAN GET THIS OPERATING AGREEMENT FINALIZED AND THEN BE ABLE TO MOVE TO THE STEP OF FIGURING OUT THE DETAILS ON THE SHORE THING.
BUT GIVE THEM AN OPPORTUNITY TO GET THAT NAILED DOWN SO THEY CAN PROCEED ON WITH THEIR DETAILED ENGINEERING AND OTHER THINGS ON THE MORINGS AND THE SHORE FACILITIES.
>> WHILE WE'RE TALKING ABOUT THE BATTLESHIP TEXAS, I JUST WANT TO CONTINUE TO EMPHASIZE THE IMPORTANCE OF CONNECTIVITY WITH THE DOWNTOWN AREA TO GET VISITORS FROM THE DOWNTOWN AREA TO VISIT THE BATTLESHIP.
THERE'S A LOT OF WORK THAT MIGHT NEED TO BE DONE, AND I THINK ONE OF ONE OF THEM IS BEAUTIFYING THE ENTIRE WATERFRONT FROM 28 ALL THE WAY DOWN TO 10, BASICALLY.
BEAUTIFYING ALL OF THAT AND THEN IMPROVING DRAMATICALLY THE CROSSINGS,
[00:50:05]
PROBABLY AT 20TH. IS IT 20TH? PROBABLY AT 20TH, TO REALLY HAVE PEOPLE GET FROM DOWNTOWN AREA TO THE BATTLESHIP EASILY.>> PART OF THAT PLAN, I WOULD SAY ALSO IS [INAUDIBLE] YOU TALK ABOUT, IS HOW TO CONNECT THIS AREA DOWN TO THIS AREA.
THE VA NEED THAT DIRECTIVE TO GIVE US THOUGHTS ABOUT HOW TO DO THAT.
ACTUALLY, THEY ALSO NOW IF YOU'RE FAMILIAR WITH THE FACT I THINK THE CITY HAS A SIMILAR GRANT IN SAFE STREETS.
WE FINISHED OURS, I KNOW THAT THEY'VE TALKED TO COUNCIL, I THINK THEY WERE MESSING PEOPLE.
THAT WAS FINISHED AND APPROVED BY OUR BOARD AND FILED IN TIME.
THERE'S A WHOLE THING FOR THE SAFE STREETS, AND WE HAD ABOUT $10 MILLION WORTH OF IMPROVEMENTS THAT NEED TO BE DONE TO HARVEST SIDE DRIVE TO DO WHAT RICHARD IS TALKING ABOUT.
WE GOT ALL THAT STUFF IN, AND THEN NOW WE'RE IN THE SECOND PHASE OF THAT.
THE SECOND PHASE OF THAT ALREADY IS FUNDING THESE PROJECTS.
WE ARE IN THE PROCESS OF FILING.
I THINK WE HAVE UNTIL THE END OF THIS MONTH TO FILE.
WE DO THE STUDY AND THEY GIVE YOU MONEY TO DO THAT, AND THAT'S COMPLETED.
YOU FILE THAT WITH THEM, AND THEN THEY COME BACK WITH THIS, CAN WE GIVE YOU THE MONEY TO FUND IT?
>> ROGER, SPEAKING OF ENHANCEMENTS ON SAFETY, AND WE DID GET A GRANT FROM THE STATE FOR THE WALKOVER THE 25TH.
CAN YOU UPDATE COUNCIL AND THE CITIZENS ON WHAT HAPPENED WITH THAT?
>> WELL, FORTUNATELY WE GOT $4.8 MILLION FROM THE STATE AS PART OF THOSE TXDOT FUNDS.
THEY CAME DOWN HERE AND SAID, YOU GUYS NEED TO GET THIS FIXED.
THE PROBLEM IS WE WENT OUT TO BID FOR IT, WE CAME IN WITH 10 MILLION TO GET DONE WHAT WE WANT TO GET DONE.
WHAT WE GOT WAS NEW ELEVATORS, ESCALATORS FROM BOTH SIDES, AND A RAMP BUILT ON THE OTHER SIDE BECAUSE WE SEE THIS AS ICONIC ENTRANCE TO THAT WHOLE AREA OVER THERE FROM THIS END OF THE STRAND.
WHERE THAT SITS RIGHT NOW IS WE HAVE ACTUALLY GONE BACK TO TXDOT.
WE HAVE THREE PROJECTS THAT WERE FUNDED WITH THE LAST MONEY THAT WE GOT 46 MILLION, WE GOT FROM TXDOT.
ONE OF THEM WAS THE SLIP FILL, WHICH WAS 36 MILLION, MOST OF THE MONEY.
THE OTHER WAS THE $4.8 MILLION WE GOT TO FINISH THAT WALKOVER.
THEN WE GOT ABOUT $2.9 MILLION FOR THE WEST END EXTENSION OF ROAD ON OUR PROPERTY.
THAT'S THIS PIECE FROM BASICALLY HERE TO HERE, AND SO THEY GAVE US $2.9 MILLION GRANT.
WHEN WE WENT BACK TO HIM AND SAID, LISTEN, WE'VE GOT AN ISSUE HERE.
WE WANT TO BUILD THIS WALKWAY.
IT'S TURNED OUT TO BE ALMOST TWICE AS MUCH AS WE THOUGHT.
EARLIER, THREE YEARS AGO WHEN WE PUT THESE PROJECTS, AND THIS IS ONE OF THE PROBLEMS THAT WE'RE ADDRESSING AT THE PACK IS THESE NUMBERS GET STALE QUICK.
BUT WE HAVE TO PUT TOGETHER AND GET THE PROJECT DONE AND ALL THAT BEFORE WE GIVE IT TO TXDOT.
WHEN WE FINALLY GOT THE MONEY, IT WAS THREE YEARS LATER.
WE WENT BACK TO THEM AND SAID, DO YOU HAVE ANY IDEAS? THEY HAD AN IDEA.
WHY DON'T YOU DELAY THE LAST SECTION, THE $2.9 MILLION ON THE WEST END AND ADD IT TO THE PROJECT THAT YOU'VE GOT ON THE WALKWAY.
WE PREPARED A FORMAL APPLICATION TO HAVE THAT DONE.
WE FOUND OUT YESTERDAY THAT WE'LL HAVE TO GO TO THE TRANSPORTATION COMMISSION TO GET APPROVAL ON THAT, WHICH MAKES SENSE.
WE'RE IN THE PROCESS AND I THINK WE'LL TALK ABOUT THIS IN OUR MEETING ON TUESDAY, WHERE WE WANT TO GO WITH THAT.
THE ISSUE IS, WE'RE GOING TO DELAY ONE SECTION OF THE WEST END INTERNAL ROAD.
BUT THEN THE OTHER THING IS DO WE WANT TO? WE'VE HAD THE DISCUSSIONS ALREADY ABOUT THIS, BUT WHETHER OR NOT WE DECIDE THAT'S WHAT WE WANT TO DO OR DO WE WANT TO KEEP IT TO PROCESS AND FIGURE OUT HOW TO FLOOD THE WALKWAY, RIGHT?
>> EXACTLY. I KNOW ALEX HAS A COMMENT, BUT BEFORE THAT, REAL QUICKLY.
THIS TIE IN FROM PIER 19 AREA DOWN TO THE TEXAS, THE REAL ESTATE COMMITTEE HAS BEEN WORKING ON THAT,
[00:55:02]
THEY ARE AT THE PORT TO TRY TO WORK THAT OUT.YOU MIGHT HAVE VA GET WITH SEALY & SMITH.
ARE THEY GOING TOUCH THAT THING?
>> THEY HAVE NOT YET, BUT WE CAME OUT OF THE LAST MEETING LAST WEEK WAS [OVERLAPPING]
>> WELL, THE REASON IS IT'S ON OUR AGENDA, COUNCIL MEMBERS, FOR TOMORROW TO APPROVE THEIR PARKING LOT AND LANDSCAPING AND ALL OF THAT THROUGH THAT AREA.
>> I WAS UNDER THE IMPRESSION THAT WAS TURNED DOWN, THE PLANNING.
>> EVEN THOUGH IT'S TURNED DOWN.
>> YEAH. EVEN IF IT'S TURNED DOWN.
IT'S ON OUR AGENDA TOMORROW AFTERNOON.
>> WE RECEIVE A NON-RECOMMENDATION, RIGHT?
>> YEAH, NO RECOMMENDATION FOR APPROVAL, IS THE PLANNING COMMISSION.
>> I'VE EMPHASIZED AND VA IS ON BOARD WITH THE BEAUTIFICATION.
LET'S GET THIS THING GREEN, GREEN AREA AS MUCH AS WE CAN.
WE EXPECT THIS AREA RIGHT IN HERE TO COME BACK AS PART OF THE MASTER PLAN AND THE GREENING OF THAT AREA RIGHT THERE.
WE HAVE PARKING, BUT ONE OF THE THINGS WE'RE BUILDING, YOU'VE SEEN THE PARKING DECK AND THE LAST PHASE OF THE PARKING DECK THAT THEY'RE DOING RIGHT NOW IS A WALKOVER BECAUSE THIS IS A VERY INTEGRAL PART OF THIS TERMINAL WHERE ALL THE SUPPLIES COME IN.
EIGHTEEN-WHEELERS HAVE TO GO IN HERE AND BRING IN MATERIALS FOR THE SHIP, SO WE'RE BUILDING A WALKWAY OVER THAT AREA RIGHT THERE.
IF YOU GO DOWN THERE RIGHT NOW, YOU'LL SEE IT BEING BUILT SO THAT THEN THIS PARKING DECK HERE CAN FLOW INTO THIS AREA.
THERE WILL BE A ESCALATOR AND A ELEVATOR ON THIS SIDE.
WE HAD CONVERSATIONS WITH THE BUSINESSES HERE AND THEIR CONCERN IS THE PARKING, BUT THE PARKING IS RIGHT THERE.
SEE THE STOSS REPORT THAT HAD SOMETHING IN THERE.
I WENT ON MY OWN AND HAD ANOTHER DRAWING DONE OF THIS WHOLE AREA RIGHT HERE.
I WOULD SUGGEST IF ANYBODY KNOWS ANYBODY OFF THAT SEALY & SMITH FOUNDATION TO TRY TO TALK TO ABOUT SOMETHING MORE THAN JUST A SURFACE PARKING LOT THERE.
[OVERLAPPING] SOMETHING TO SUPPORT THAT WHOLE AREA.
MY THOUGHT PROCESS IS, IT COULD BE MIXED USE.
THERE ARE ACTUALLY TWO PARCELS.
WHEN I WENT TO THE PLANING COMMISSION, ONE OF THEM IS ZONED, I THINK, HEAVY INDUSTRIAL, AND THE OTHER ONE IS ZONED COMMERCIAL OR SOMETHING.
I'M NOT EXACTLY SURE, BUT ONE OF THEM IS OKAY FOR PARKING, BUT THE OTHER ONE IS NOT.
THEY'RE TRYING TO MAKE THAT A WHOLE SURFACE AREA THERE.
>> YOU'RE COMBINING THREE LOTS THERE.
>> TO ME, MY GOSH, WHAT A GREAT PLACE THAT WOULD BE IF WE COULD REALLY TURN THAT INTO A PARK AREA.
>> WHAT KIND OF PILOT PROJECT FOR THIS?
>> WELL, I THINK IT CAN BE A WIN-WIN FOR SEALY & SMITH AND FOR THE PORT. ALEX.
>> I WANTED TO HIGHLIGHT SOMETHING, I GUESS IT WOULD BE THE DREDGING THAT RANDY WEBER PUT ON THE BILL THAT'S COMING UP.
THAT WAS IN THE SPIRIT OF COLLABORATION THAT'S PRIVATE PARTNERS AND THE PORT ACTIVELY LOBBYING OUR REPRESENTATIVE.
I TALKED TO ONE OF THE PILOTS FOR GALTEX WHO WAS UP THERE, AND HE WAS REALLY EXCITED.
THEY WERE RECALLING THE DAY THAT THEY ANNOUNCED THAT IT WAS ON THE BILL FOR THE 47, 48 MILLION FOR THE DREDGING.
I WANTED TO SAY, THANK YOU, GUYS, AND ALSO, THANKS TO GALTEX AND ANYONE ELSE WHO HELPED COLLABORATE TO DO THAT, AND IN THE SPIRIT OF WHY WE'VE BEEN PUSHING THESE JOINT MEETINGS.
A LOT OF THIS MONEY THAT WE'RE TALKING ABOUT IS ASKING, YOU'RE HAVING TO ASK FOR MONEY.
I THINK I MENTIONED THIS LAST MEETING.
IF THERE'S ANY OPPORTUNITIES FOR A COUNCIL LETTER OF SUPPORT, PLEASE, AGAIN, NOT TO STEAL THUNDER HERE.
I THINK IT'S A STRONG MESSAGE IF COUNCIL COLLECTIVELY SENDS LETTERS, PUTS IT A PART OF THE RECORD, COUNCIL SEES THE BENEFIT OF THIS.
WE UNDERSTAND THE BENEFIT OF THIS, WE'RE SUPPORTING OUR PORT.
DON'T LEAVE US OUT ON THAT OPPORTUNITY, AND IT'S ON THE TABLE, AGAIN, FOR YOU AND THE TRUSTEES TO USE FOR ADDITIONAL LEVERAGE AND SUPPORT TO PUSH YOU GUYS AND SAY THIS EXTRA MONEY WOULD HELP.
>> WHAT HE REFERRED TO JUST THIS PAST WEEK, IT CAME OUT WE RECEIVED $47 MILLION FOR DREDGING THE CHANNEL.
>> WELL, WE HAVEN'T RECEIVED IT YET.
[01:00:01]
>> IT'S IN THE BILL IT'S GOT TO BE PASSED. IT'S GOT TO BE SIGNED. IT'S NOT DONE.
>> WE FEEL GOOD ABOUT IT BECAUSE FOR THE LAST 12 YEARS, TEXAS HAS NOT RECEIVED MUCH IN THE FORM OF GRANTS AND EVERYTHING, SO THIS WAS GOOD.
WE DID HAVE REPRESENTATIVE COLLINS DOWN HERE THREE WEEKS AGO, WHO IS THE CHAIRMAN OF THE SUBCOMMITTEE OF THE TRANSPORTATION COMMITTEE.
WE SPENT A GOOD TIME WITH HIM.
WE GAVE HIM A TOUR OF THE PORT.
HE MET WITH PORT OF HOUSTON IN THE MORNING AND THEN SPENT THE AFTERNOON AND LUNCHTIME WITH US.
I WAS TALKING YESTERDAY TO OUR GUYS IN WASHINGTON AND THEY ARE OF THE OPINION THAT HIS TRIP DOWN HERE REALLY PUSHED US OVER ON THE 47 MILLION.
>> HE SAW THE NEED FOR IT AND LOVED THIS AREA. DOWN-TO-EARTH GUY.
WE'VE GOT REPRESENTATIVE ROUZER, WHO IS THE CHAIRMAN OF THAT COMMITTEE SCHEDULED TO COME DOWN HERE THE FIRST WEEK OF AUGUST.
I'VE GOT RELATIONSHIP WITH HIM.
I MET WITH HIM THREE TIMES IN WASHINGTON, AND HE'S ALWAYS EXPRESSED INTEREST IN COMING TO TEXAS TO SEE WHAT WE'RE DOING.
GALVESTON IS CERTAINLY ON THE MAP NOW, BUT TEXAS IS IN LINE FOR GETTING THINGS WE HAVEN'T BEEN GETTING.
>> IF THIS ACTIVITY HAPPENS ON PELICAN ISLAND, TEXAS WILL BE A MAJOR FOCAL POINT IN THIS NATION. GO RIGHT AHEAD, BOB.
>> JUST TO CLARIFY, 47 MILLION IS APPLICABLE TO ONLY THE GALVESTON SHIP CHANNEL.
>> IN THE MOUTH. ONE OF THE THINGS YOU ALWAYS HAVE TO BE COGNIZANT OF IS THE SPOILS AREA BECAUSE THIS IS WHAT HAPPENED TO US LAST TIME.
WE GOT OVER 30 MILLION LAST TIME, BUT THE ARMY CORPS HAD TO TAKE 20 OF THAT TO REBUILD THE LEVELS.
>> YOU GOT TO PUT IT SOMEWHERE.
>> ONE OF THE THINGS WE'RE DOING RIGHT NOW IS THE BOARD HAS AUTHORIZED AN ENGINEERING STUDY OF THIS OF OUR SPOILS AREA BECAUSE WHAT I WOULD LIKE TO DO IS TO SHRINK IT AND YET BE ABLE TO CONTINUE TO HOLD THE SAME AMOUNTS THAT WE HAVE IN THERE NOW BECAUSE WE'VE GOT TO HAVE IT BECAUSE WE USE THAT FOR OUR TENANTS AS WELL AS ARMY DREDGE.
ONE OF THE THINGS WE'VE BEEN LOOKING AT IS HOW DO WE MAKE THIS SMALLER AND YET BE ABLE TO HOLD THE SAME AMOUNT OF MATERIAL BECAUSE IT TURNS OUT WE MAY NEED MORE LAND.
>> THAN WE HAVE, AND WE'VE GOT SOME PEOPLE WE'VE BEEN TALKING TO ABOUT SMALL-SCALE L&G.
I DON'T KNOW IF YOU'RE FAMILIAR WITH THAT, BUT L&G HAS COME A LONG WAY NOW.
>> FOR SPEAKING OF THE DREDGING, THIS IS ANOTHER INTERESTING LITTLE FIGHT IN AUSTIN, BUT THE BOLIVAR ROADS IS AN EXTENSION OF THE GALVESTON SHIP CHANNEL, SO HOWEVER FAR THAT NEEDS TO GO, I'M SURE.
>> IT DOESN'T USUALLY SILT OUT THERE BECAUSE THERE'S A GOOD CURRENT THERE. OPPOSITE IT'S THE MAIN CHANNEL.
>> BUT ANYTHING GOING TO THE MOUTH AND BOLIVAR ROADS IS CONSIDERED PART OF THE GALVESTON SHIP CHANNEL.
WHATEVER DEPTH THAT WE NEED TO BRING IN BIGGER SHIPS.
>> THERE'S A CONFLICT GOING RIGHT NOW BETWEEN OUR PILOTS AND HOUSTON PILOTS.
>> THE DREDGE SPOILS AREA, THOUGH, IS NO LONGER AN ISSUE.
THAT'S SETTLED AS PART OF THIS 47 MILLION WHERE THAT DREDGE MATERIAL IS GOING TO GO.
>> THAT'S ALL FEDERAL. THAT PROBABLY GOES ON NORTH PELICAN ISLAND.
IT COULD GO HERE ON THE END OR IT COULD GO THERE AT THE DUMP AREA OFF THE COAST.
>> WE HAVE A TERM FULL WIDTH, FULL DEPTH THAT WE'RE TRYING TO ACCOMPLISH.
IT'S ONLY HAPPENED MAYBE FOR ONE YEAR IN THE LAST 50 THAT WE'VE BEEN ABLE TO GET FULL DEPTH.
>> PART OF THAT IS ALSO THE CHANNEL EXTENSION WHERE THE PORT AND TEXAS INTERNATIONAL TERMINALS HAVE AN AGREEMENT TO SHARE IN THE COST OF THAT CHANNEL EXTENSION.
IF YOU RECALL THE CHANNEL ONLY COMES BACK TO ABOUT ALMOST THE END OF OUR PROPERTY.
IT COMES BACK TO ABOUT RIGHT HERE.
THE ACTUAL FEDERAL CHANNEL ENDS RIGHT HERE.
THE EXTENSION IS THIS AREA BACK FROM HERE, PLUS THE PILOTS HAVE COME BACK AND SAID, WE NEED BIGGER AREAS TO TURN THE SHIPS, SO THEY EXTENDED A WEDGE OVER HERE SO THAT THEY CAN TURN SHIPS HERE.
THAT'S BEEN FUNDED, AND THAT'S ACTUALLY GOING TO BE LED, I THINK, FOURTH QUARTER OF THIS YEAR, WHERE WE'LL HAVE THAT IN PLAY TO EXTEND THE CHANNEL.
THE REALITY OF THE CHANNEL IS IT'S ALREADY AT DEPTH IN THAT AREA, BUT WHAT HAPPENS IS IF YOU DO IT YOURSELF, THEN YOU FOREGO THE FEDERAL OBLIGATION TO DO MAINTENANCE DREDGING.
[01:05:04]
WHAT YOU WILL BE DOING HERE, THAT'S ABOUT A $16 MILLION PROJECT, AND IT'S BEEN FUNDED.THEY'RE GETTING READY TO LET THAT CONTRACT TO DO THAT TRIANGLE THERE, WHICH THEY WERE ABLE TO PUT IN THE ORIGINAL CONTRACT.
THE PORT WILL BE PUTTING UP ABOUT $1.5 IN TEXAS INTERNATIONAL, WILL BE PUTTING ABOUT THREE MILLION OF THE TOTAL MATCH ON THAT.
>> WHAT'S IMPORTANT ABOUT THAT, AS OUR VIEWING PUBLIC KNOWS, IS WHEN IT COMES TO FUNDING, WE'RE 30 SOMETHING NOW, OUR PORT?
>> I THINK WE'RE GOING TO BE DROPPING BACK.
WE WERE 38, AND BECAUSE OF THE CONSTRUCTION AND STUFF IN OUR CARGO BUSINESS, AND OUR CARGO BUSINESS IS DOING PROBABLY BETTER THAN IT HAS, BUT IT'S ONLY IN SPECIFIC AREAS.
WE'VE LOST DEL MONTE, WE'VE LOST THE GRAIN ELEVATORS, SO THOSE REVENUES AND THOSE TONNAGES HAVE DROPPED.
I THINK THAT, FROM WHAT I UNDERSTAND, WE WERE 38, AND I THINK WE ARE GOING TO GO BACK LIKE 42ND.
>> BUT ONCE WE GET FULLY DREDGED, THEN ALL THE CARGOES WILL PROBABLY BE IN 30 SOMETHING.
>> YES. EXACTLY. [OVERLAPPING]
>> THEN THAT WILL GET US MORE FEDERAL FUNDING, IS THE ULTIMATE.
>> YOU MIGHT MENTION, ROGER, JUST THE TONNAGE THAT WE DO, BUT THE TONNAGE THAT TEXAS INTERNATIONAL AND THE OTHER, YOU MIGHT MENTION THOSE NUMBERS.
>> WE ONLY DO ABOUT A THIRD OF THE TONNAGE.
THE PORT ITSELF ONLY DOES ABOUT A THIRD OF THE TONNAGE THAT GOES THROUGH THERE.
THE YEAR BEFORE LAST, I THINK, WE DID ABOUT 12 MILLION TONS A YEAR.
>> THAT COUNTS, BECOMES A FEDERAL FUNDING, BUT THE PORT IS ONLY RESPONSIBLE FOR ABOUT FOUR OF THAT.
HERE, AGAIN, THAT'S ALL THE MORE REASON WE'RE TRYING TO FIX THE WEST END BECAUSE WE KNOW THAT EVEN THROUGH THE RAILROADS AS WELL AS [INAUDIBLE] THAT THERE'S OTHER PRODUCTS THAT WILL BE BROUGHT IN HERE, BUT RIGHT NOW, WE'RE UNDER CONSTRUCTION, AND SO WE'RE BASICALLY OUT OF BUSINESS ON THOSE [INAUDIBLE] PIERS, AND SO THAT'S WHY WE'RE UTILIZING THIS DOCK RIGHT HERE.
THAT'S WHY WE HAD TO BUILD A CONCRETE ROAD FROM CROSSING OVER HERE UP TO HERE JUST TO BE ABLE TO HANDLE THIS WEIGHT.
BECAUSE WE HAD PAVING IN THERE, AND SOME OF THESE THINGS ARE 100 TONS, SOME OF THESE GENERATORS AND THESE HUGE PIECES OF EQUIPMENT.
SINCE WE HAVE TO USE THAT [INAUDIBLE], THEN WE HAD TO BUILD A CONCRETE ROAD FROM THAT TO THE EXIT.
>> MAYOR, I THINK YOU CAN TELL WE'VE GOT A LOT GOING ON TRYING TO GET THIS MASTER PLAN TOGETHER, BUT WOULD YOU LIKE TO MOVE?
[3.B Discussion of Activities for the 200 Year Anniversary of the Port of Galveston]
>> YES, SIR. I WAS JUST GOING TO RECOMMEND.
LET'S MOVE INTO OUR 200TH-YEAR ANNIVERSARY. JANELLE.
>> DISCUSSION OF ACTIVITIES FOR THE 200-YEAR ANNIVERSARY OF THE PORT OF GALVESTON.
>> I'D LIKE TO SAY THAT THE PORT OF GALVESTON RECEIVED ITS CHARTER FROM THE REPUBLIC OF MEXICO ON OCTOBER 17TH, 1825.
IT'LL BE 200 YEARS, PROBABLY THE OLDEST OPERATING ENTITY REMAINING IN TEXAS.
CERTAINLY, I DON'T KNOW OF ANOTHER ONE THAT WAS CHARTERED BY THE REPUBLIC OF MEXICO.
THE PORT STAFF HAS WORKED HARD.
WILLIE, HAS BEEN INVOLVED, MYSELF, IN HAVING A FUNCTION THAT WILL COST NO TAXPAYER MONEY, NO PORT DOLLARS, AND WE'RE GOING TO END UP WITH A SCHOLARSHIP FUND FOR THE TEXAS A&M UNIVERSITY AT GALVESTON.
>> WITH THAT, WE HAVE SOME GREAT PLANS.
ROGER AND ANGIE, I DON'T KNOW WHO WOULD.
>> EXACTLY. THIS HAS TAKEN A LOT OF WORK.
OUR SPONSORS, WE HAVE OVER 33 SPONSORS THAT STEPPED UP AND MADE CONTRIBUTION TO THIS EVENT.
[INAUDIBLE] BEING THE HEADLINE SPONSOR [INAUDIBLE] BEHIND HIM.
WE HAVE RAISED ALMOST $900,000 FOR THIS.
THE COST IS GOING TO BE PROBABLY SOMEWHERE AROUND 600 FOR THE WHOLE EVENT.
MY GOAL, AND I THINK WE'RE GOING TO ACHIEVE IT BECAUSE WE HAVE NOT REALLY EVEN TOUCHED THE EVENT AND TABLE SALES AND THINGS LIKE THAT FOR THE EVENT, BUT MY GOAL IS I THINK WE PUT 300,000 INTO A SCHOLARSHIP FUND, AN ENDOWMENT FUND AT TEXAS A&M FOR THE MARITIME INDUSTRY.
[01:10:02]
THEN HOPEFULLY, THAT BECOMES AN ONGOING EVENT THAT WE CAN PULL TOGETHER AND CONTINUE TO MAKE CONTRIBUTIONS.MY THOUGHT IS, WE GET IT BUILD UP TO WHERE THERE'S ENOUGH INTEREST EARNINGS FROM THAT TO MAKE SCHOLARSHIPS OUT OF IT SO IT KEEPS THE PRINCIPAL INTACT.
WE'RE NOT GOING TO BE ABLE TO DO THAT THE FIRST YEAR BECAUSE WE WANT TO MAKE SOME GOOD SCHOLARSHIPS THE FIRST YEAR, SO WE'LL HAVE TO TAKE SOME OF THOSE PRINCIPAL TO DO THAT THE FIRST YEAR, BUT WE'VE ALREADY MET WITH A&M AND THEY HAVE A PROGRAM THAT WE CAN MAKE IF WE PUT AN ENDOWMENT OUT THERE.
REALLY, TO ME, THAT'S THE MOST EXCITING PART OF THIS WHOLE THING, IS BEING ABLE TO DO THAT AND HAVE SOMETHING THAT HELPS EDUCATION BECAUSE THE MARITIME INDUSTRY IS IN DIRE NEED OF EMPLOYEES, AND TRAINING IS ONE OF THE THINGS THAT WE'VE GOT TO HAVE IN ORDER TO CONTINUE.
BECAUSE WITH US GETTING MORE AND MORE EXPOSURE, WASHINGTON NOW, FOR THE FIRST TIME, IS RECOGNIZING WHAT THIS INDUSTRY CONTRIBUTES WORLDWIDE, GLOBALLY.
WE RUN COMMERCE WORLDWIDE, BUT JUST TO GET BACK TO THIS, I DON'T WANT TO GET OFF THAT, BUT I THINK IT'S EXCITING.
>> TEXAS A&M GALVESTON IS ONE OF THE BEST MARITIME PROGRAMS IN THE NATION.
JUST THOUGHT I SHOULD ADD THAT.
>> I'LL JUST SAY THIS, AND DR. WILLIE, IT'S NOT SOMETHING BAD, BUT THE TEXAS A&M GALVESTON, THE STARTING SALARY OF A GRADUATE FROM CAMPUS HERE IS THE HIGHEST OF ANY SYSTEM UNIVERSITY IN TEXAS.
>> IT'S A PRETTY AMAZING STATISTIC.
>> I WAS JUST LOOKING THROUGH MY EMAILS LAST NIGHT AND I RECEIVED AN EMAIL FROM A HIGH SCHOOL COUNSELOR.
YOU REMEMBER WHEN I INTERVIEWED TO GET ON THE BOARD, MY BIG THING IS TO KEEP YOUNG PEOPLE IN GALVESTON GO TO SCHOOL HERE, MAKE A LIVING HERE, OR AT LEAST BE PROFITEERS IN THE MARITIME INDUSTRY.
THIS EMAIL CAME THROUGH AND THERE WAS A YOUNG LADY WHO SHADOWED BRETT, OUR ASSISTANT DIRECTOR, AND CONVINCED HER THAT THIS IS WHAT SHE WANTS TO DO THE REST OF HER LIFE, TO GET INTO THE MARITIME BUSINESS, BUT THIS SCHOLARSHIP THAT WE'RE TALKING, IT'S NOT JUST ONE YEAR.
IT'S GOING TO PERPETUATE FOR YEARS TO COME AND JUST GET BIGGER.
IT'S A GOOD WAY TO HAVE SPONSORSHIP MONEY GO TO SOMETHING REALLY BIG.
>> I'VE DONE MY WORK WITH ALL OF MY FRIENDS IN THE MARC PROGRAM AND MARR PROGRAM TO LIVE HERE AS WELL, SO TRYING TO GET AS MANY PEOPLE AS I CAN, SAY, THIS IS THE PLACE YOU WANT TO LIVE.
YOU DON'T WANT TO LIVE ANYWHERE ELSE.
>> AND RAISE YOUR FAMILY AND BE A PART OF THE CITY.
>> WE TIMED MARITIME DAY TO COME ON TO THE DAY YOU GUYS HAVE YOUR MEETING.
>> WE HAD OUR CITY COUNCIL MEETING.
>> NO WORRIES. TOMORROW'S MARITIME DAY, OBVIOUSLY, AND IT'S NOT OUR DAY.
>> [INAUDIBLE] THAT WHAT I THINK.
>> THAT'S THE DAY IT IS. WE'RE REALLY STARTING THE 200TH ANNIVERSARY OFF TOMORROW AT THE MARITIME.
WE'VE EXPANDED THE PROGRAM FOR TOMORROW.
WE HAVE THREE SHIPS THERE FOR PEOPLE TO GO ON AND LOOK AT.
WE'RE HAVING EIGHT DIFFERENT SPONSORS AND OR ENTITIES LIKE THE COAST GUARD.
ALL OF THIS BEING THE FOCUS IS WORKFORCE.
WE'VE ASKED ALL THESE PEOPLE THAT WILL HAVE A TABLE THERE TOMORROW TO TALK ABOUT WORKFORCE AND HOW WE GET THIS GROWING.
BECAUSE THEY'RE STEALING ALL THE PEOPLE, THE GRADUATES FROM A&M ARE GOING OTHER PLACES IN MOST CASES.
IT'S HARD TO KEEP THEM HERE, BUT TOMORROW WE'RE HAVING A CEREMONY, WHICH COLONEL FOSSUM WILL TALK A LITTLE BIT MORE ABOUT, WILL TALK ABOUT WORKFORCE TOMORROW, AS WELL AS WE'LL HAVE A VIP TENT THERE.
WE'LL BE SERVING A LUNCH TO MOST OF OUR SPONSORS, AND EVERYBODY IN THIS ROOM WOULD BE INVITED, BUT LIKE I SAID, WE PLANNED IT SO YOU COULDN'T COME.
WE'D LOVE TO HAVE YOU HERE, YOU KNOW THAT.
>> THIS MARITIME DAY IS ACTUALLY TOMORROW.
>> YEAH, MARITIME DAY IS TOMORROW.
WE'LL BE HAVING THE ODYSSEY CHILDREN'S CHOIR THERE.
WE'LL BE SINGING A COUPLE OF SONGS.
WE'RE TRYING TO MAKE IT A CHILDREN'S EVENT ALSO.
>> ROGER, TO EDUCATE THE COUNCIL, WHO AT THE PORT HAS BEEN WORKING ON GETTING THIS ANNIVERSARY PUT TOGETHER?
>> THEY'VE SPENT A LOT OF TIME AND A LOT OF MOVING PARTS TO THIS WHOLE THING.
THEY'VE DONE A FANTASTIC JOB OF PUTTING TOGETHER THIS PROGRAM.
AGAIN, ON OCTOBER 17TH, WE'RE GOING TO HAVE A PARTY ON THE PIER, WHICH IS PIER 21.
WE'RE EXPECTING 2,000 PEOPLE THERE AT LEAST TO SHOW UP FOR THIS,
[01:15:02]
AT LEAST BASED ON THE GUEST LISTS.THAT'S GOING TO BE A COUPLE OF BANDS THERE AT THAT NIGHT.
THEN HERE WE'LL HAVE ANOTHER VIP TENT FOR THE SPONSORS AND GUESTS.
>> WE'LL HAVE A DRONE SHOW AFTER THAT, WHICH IS GOING TO BE PHENOMENAL BASED ON I'VE SEEN THE MAP OF THAT, AND IT'S GOING TO BE A REALLY FIRST CLASS 20-MINUTE PRESENTATION.
IT SHOULD BE NICE WITH LOGOS OF ALL THE SPONSORS AND SHIPS AND THINGS LIKE TRAIN, ALL THAT STUFF. IT'S MARITIME-RELATED.
THEN THE NEXT NIGHT, WE'LL HAVE A GALA AT THE CONVENTION CENTER, WHICH WE'RE EXPECTING ABOUT 200 PEOPLE FOR THAT.
WE'LL BE SELLING TABLES AND THINGS LIKE THAT, WHICH I THINK WILL TOP OFF OUR SCHOLARSHIP EFFORTS.
IT IS PRETTY MUCH ALL THE MONEY THAT COMES IN FOR THAT GALA ON SATURDAY NIGHT.
>> [OVERLAPPING] ACTUALLY ROGER, IT'S BETWEEN 750 AND 800 PEOPLE AT THE GATE.
>> CRAIG, IT'S GOING TO BE GREAT DAY.
>> A HUNDRED AND FIFTY AND 800?
>> SEVEN HUNDRED AND FIFTY AND 800.
>> [OVERLAPPING] I HAD TO CHECK WITH MY FACT CHECKER.
>> [OVERLAPPING] IT'S GOING TO BE A GREAT WAY, CRAIG, FOR THE CITY TO PARTICIPATE WITH THE PORT FINALLY.
BECAUSE THEY SEE THE CRUISE SHIPS, THEY SEE ALL THE OTHER STUFF THAT GOES ON IN THE PORT.
THIS IS A WAY TO WELCOME THEM TO SEE WHAT'S GOING ON OUT THERE AND HOW BIG IT ALL IS.
>> IS THE BAND WE'RE HAVING, WILLIE?
>> [OVERLAPPING] MY FAVORITE BAND.
>> WE'RE STILL WORK ON THE OTHER ACTORS, THERE WILL BE TWO ACTS THERE.
THERE'S GOING TO BE A [INAUDIBLE] LOOKING LIKE CONTEST. QUITE A FEW THINGS.
I'M TRYING TO GET AN OFFICIAL FROM MEXICO TO COME DOWN SO YOU GUYS CAN PRESENT THEM WITH A PROCLAMATION BECAUSE IF IT WASN'T FOR THEM, WE WOULDN'T BE HERE.
>> WHO IS IT WE HAVE SATURDAY NIGHT?
>> SATURDAY NIGHT THE BAND IS?
>> YOU'RE OUT OF DALLAS. THAT'S FOR SAN LUIS.
>> THAT'S 10B SHOW BAND. THEY'RE VERY GOOD.
>> THEN THE NEXT MONTH AFTER THAT OR LATER THAT MONTH, WE'LL BE PUBLISHING A BOOK.
THERE'S THE GALVESTON HISTORICAL SOCIETY IS WRITING THAT BOOK.
IT'S ABOUT 140 PAGES PICTORIAL HISTORY INTERTWINED IN AND GOING BACK ALL WAY TO 1825 TO THE CURRENT PERIOD.
WE'RE GOING TO PRINT ABOUT 1,500 COPIES OF THAT, MAKE SURE ALL THE LIBRARIES GET THEM AND LOCAL SPONSORS, AND EVERYBODY GETS THOSE.
>> DWAYNE JONES IS WORKING ON THAT WITH HISTORICAL FOUNDATION.
I CAN'T SHOW YOU-ALL THESE YET, BUT THESE ARE SOME OF THE SNEAK PICS OF THE PICS THAT, HOPEFULLY, WILL END UP IN THAT BOOK FOR THE WORK.
>> A LOT OF PEOPLE ARE COMING FORWARD.
>> I'VE GOT THIS, MY GRANDFATHER HAD THIS.
>> YOU THINK ABOUT IT, 200 YEARS.
I GET E MAILS STILL FROM INDIVIDUALS FROM ALL OVER THE NATION AND THEY'LL TALK ABOUT THEIR FAMILY THAT WAS IN GALVESTON AND HOW THEY WORKED AT THE PORT.
THEY ALWAYS BRING THE PORT UP, OR MANY OF THEM DO, WHEN THEY CONTACT ME.
>> MAYOR, THE SAD PART IS SOME OF OUR INFRASTRUCTURE, I THINK, IT WAS ORIGINALLY THERE.
>> CHRISTINE DUFFY WILL BE THERE [OVERLAPPING]
>> I THINK VICK JOHN PHISH [PHONETIC] IS STILL THERE.
>> WE MIGHT FIND THAT ONCE WE START DIGGING AROUND.
>> [OVERLAPPING] THERE YOU GO. LET'S GO TO ITEM 3C, PLEASE, MA'AM.
[3.C Discussion and Input from Council and Wharves Board Members Concerning Future Audits]
>> ITEM 3C. DISCUSSION AND INPUT FROM COUNCIL AND THE WHARVES BOARD MEMBERS CONCERNING FUTURE AUDITS.
>> VICK, I KNOW THIS IS TOPIC THAT THE BOARD DISCUSSED AT THE LAST MEETING AND SHEILA HAD BROUGHT THIS FORWARD.
I'M GOING TO TURN IT OVER TO YOU.
>> WE TALKED ABOUT, AT THE LAST MEETING OF THE WHARVES BOARD, POSSIBLY SENDING A LETTER TO CITY COUNCIL WITH THE RECOGNITION THAT YOU-ALL HAVE US ON YOUR AUDIT SCHEDULE FOR THIS YEAR FOR TRAINING AND TRAVEL.
THEN JUST TO SAY THAT WE'RE HAPPY TO WORK COLLABORATIVELY WITH THE CITY OF GALVESTON WITH THE STAFF AND THE CITY COUNCIL ON ANY OTHER AUDITS THAT YOU BELIEVE ARE NECESSARY FOR US TO UNDERGO.
>> THANK YOU. LET'S OPEN THAT UP TO DISCUSSION.
COUNCIL MEMBERS, ANY QUESTIONS, COMMENTS? YES, SIR.
>> I KNOW OUR CITY AUDITOR HAS A FULL PLATE RIGHT NOW.
>> WE HAVE, IN HIS PLAN AND HIS REVISED PLAN,
[01:20:01]
THE PORT AUDIT STILL SHOWS UP FOR THIS YEAR, I THINK IN Q4, AT LEAST A START FOR THAT.WHILE I APPRECIATE THE OPPORTUNITY TO OPEN IT UP FOR ADDITIONAL DISCUSSION AND ADDITIONAL AUDITS, I DON'T KNOW THAT WE CAN, WE HAVE THE MANPOWER TO DO THAT AT THIS TIME.
HOWEVER REGULAR AUDITS ARE ABSOLUTELY IMPORTANT FOR ALL, EITHER UTILITIES OR BUSINESS UNITS.
I WOULD EXPECT AND APPRECIATE YOUR SUPPORT FOR CONTINUING TO MAKE SURE THAT REGULAR AUDITS ARE PERFORMED MOVING FORWARD IN 2026.
>> I WOULD LIKE TO EMPHASIZE JUST HOW IMPORTANT, AS YOU SAY, AUDITS ARE FOR ANY ENTITY, PUBLIC ENTITIES AS WELL.
THE FACT THAT THE PORT HAS $70 PLUS MILLION OF INCOME AND EXPENSES IN A YEAR IS NO SMALL CHANGE IN TERMS OF THE AUDIT WORLD.
I COME FROM A PLACE WHERE THEY LIKE TO SEE ONE AUDIT PROFESSIONAL ON STAFF FOR EACH $15 TO $20 MILLION OF REVENUE.
WE DON'T HAVE ANY AUDIT PROFESSIONALS ON STAFF.
I WOULD LIKE TO ASK IF WE COULD THINK ABOUT, NOT NECESSARILY THIS YEAR, BUT AS YOUR AUDITOR STARTS PLANNING FOR NEXT YEAR, IF YOU COULD GET SOME OF THE WHARVES BOARD INVOLVED, PERHAPS EVEN PLAYING A ROLE ON THE AUDIT COMMITTEE.
I ASSUME YOU-ALL HAVE AN AUDIT COMMITTEE.
>> LET ME SAY YOU SHOULD CONSIDER ESTABLISHING AN AUDIT COMMITTEE.
>> WE DON'T NEED ANOTHER COMMITTEE.
>> THE RIGHT WAY TO DO IT, LET ME SAY IT THAT WAY.
THE RIGHT WAY TO DO IT IS TO HAVE AN AUDIT COMMITTEE TO HAVE YOUR AUDITOR LEAD YOU IN RISK ASSESSMENT SO YOU'RE LOOKING AT THE MOST IMPORTANT THINGS, IDENTIFY THOSE THINGS AND PUT THEM IN AN AUDIT PLAN, AND THEN MANAGE AND WORK THE PLAN THROUGHOUT.
I THINK IT WOULD BE BEHOOVE US AS A CITY TO PERHAPS HAVE PARTICIPATION ON THE AUDIT COMMITTEE FROM BOTH THE PARKS BOARD AND THE WHARVES BOARD AND THE CITY.
IT DOESN'T NEED TO BE A COMMITTEE SO LARGE THAT IT CONTAINS ALL THE MEMBERS OF THE DIFFERENT COMMITTEES, BUT IT REALLY IS AN IMPORTANT TOOL.
AS A FIDUCIARY, I NEED A WAY TO HAVE ASSURANCE.
THAT'S WHAT AUDITORS STRIVE FOR, IS ASSURANCE THAT THINGS ARE BEING LOOKED AT, AND I DON'T.
I'VE NEVER SEEN A PARKING AUDIT AND I DON'T KNOW IF WE'VE EVER HAD ONE.
I'M NOT SAYING THERE'S ANYTHING WRONG IN PARKING, BUT IT'S A HUGE OPERATION, $20 MILLION PLUS A YEAR GO THROUGH THERE.
WE HAVE A NUMBER OF AREAS THAT REALLY SHOULD HAVE MORE COVERAGE, BASICALLY.
>> WE APPROVED OUR AUDIT PLAN, I GUESS, SEVERAL MONTHS AGO SOMETIME.
WE MODIFIED IT ONCE ALREADY TO INCLUDE MORE PARK BOARD AUDITS.
I THINK WE, AT THE TIME, SAID THAT WE WANTED TO MAKE SURE THAT WE DID THE PORT AUDIT AS KEEPING AS PART OF THE PLAN.
WE'RE NOT SUGGESTING WE DON'T DO THAT, ARE WE HERE?
>> THIS IS JUST AN ADDITIONAL SAFEGUARD KIND OF THING.
>> WE'RE NOT SUGGESTING WE CHANGE THE ANNUAL AUDIT PLAN.
>> NO. I WAS TALKING ABOUT IN THE FUTURE.
>> FROM WHAT SHEILA BROUGHT UP ABOUT CITY COUNCIL SUPPORTING THE AUDIT OF THE PORT, THAT'S ALREADY IN OUR ANNUAL PLAN.
>> IT IS, BUT I THINK SHEILA IS SAYING, AND SHE SAID IT BETTER THAN I CAN SAY IT, BUT WHAT THE PORT IS SAYING IS THAT THEY KNOW THAT THERE IS AN AUDIT FOR THE PORT THIS YEAR, AND THEY GREATLY SUPPORT THAT.
IN THE FUTURE FOR NEXT YEAR'S AUDIT PLAN, THERE ARE VERY OPEN, THE PORT IS, FOR ANY AUDIT THAT THE CITY COUNCIL FEELS IS APPROPRIATE.
>> [OVERLAPPING] RICHARD'S IDEA ABOUT AN AUDIT COMMITTEE MAKES SOME SENSE TO BE ABLE TO MAKE SURE THAT WE GET THE ISSUES THAT ARE OF CONCERN TO ANY ENTITIES THAT HAVE AN AUDIT LIKE THIS.
>> THE KEY IS TO PERFORM RISK ASSESSMENTS, AND THAT SHOULD REALLY DRIVE WHAT YOU'RE LOOKING AT.
>> RICHARD, I APPRECIATE YOU BRINGING THAT UP.
IT'S INTERESTING THAT YOU POINTED TO A METRIC RELATED TO EVERY $15 MILLION.
>> IT USED TO BE A HARD AND FAST METRIC.
>> TO THAT END, IT WOULD BE FASCINATING TO BE ABLE TO USE THAT METRIC IN
[01:25:03]
ANALYZING OUR AUDIT STAFF AND THE STAFF CAPACITIES, AND THE STAFFING THAT WE HAVE THERE IN.NOT JUST FROM THE CITY PERSPECTIVE, BUT ALSO, THE OTHER ENTITIES THAT CITY COUNCIL HAS A FIDUCIARY RESPONSIBILITY FOR, WHICH WOULD BE THE WHARVES BOARD AND THE PARK BOARD.
I ADVOCATED FOR AN ADDITIONAL FTE LAST YEAR IN THE BUDGET, DIDN'T GET IT, BUT HAVING THIS OPEN DISCUSSION HERE, I THINK LENDS MORE CREDENCE, AND A LETTER OF SUPPORT DEFINITELY WOULD HELP THAT AS WELL AS WE MOVE FORWARD, SO THANK YOU. APPRECIATE IT.
ONE, WE'RE GOING THROUGH AN AUDIT RIGHT NOW WITH THE PARK BOARD.
WHAT I DON'T LIKE SEEING AND IT'S HAPPENED IN THE PAST IS WHEN AUDITS BECOME POLITICALLY CHARGED.
I KNOW THE LETTER IS COMING FROM A GOOD PLACE, BUT THERE'S TONGUE IN CHEEK WELCOMING THE AUDIT SPEAK.
WHAT I DON'T WANT TO SEE IS THINGS SNOWBALL POLITICALLY.
WE DIDN'T SEND GLENN OVER TO THE PARK BOARD ON A FISHING EXPEDITION.
WE FOUND MORE THINGS, AND THAT'S JUST HOW IT HAPPENED.
I WOULD CAUTION AGAINST A COMMITTEE, ALTHOUGH, IT'S PROBABLY A GOOD PRACTICE TO HAVE, BUT AGAIN, WE'RE GOING THROUGH A, I WOULD SAY, CONTENTIOUS AUDIT PROCESS RIGHT NOW WITH THE PARK BOARD.
THAT'S WHAT I DON'T WANT TO SEE.
IT SHOULD BE ABOUT FIXING A PROBLEM, VIEWING IT, NOT WASTING TIME AND GOING BACK AND FORTH BETWEEN THE CITY AND WHATEVER ENTITY ABOUT WHAT TO GIVE, WHAT NOT TO GIVE.
THAT'S WHERE I SEE A LITTLE BIT OF THE ISSUES RIGHT NOW, IS THAT IT'S BUTTING HEADS INSTEAD OF BEING OPEN AND HONEST AND TRANSPARENT WITH EVERYTHING.
THE SECOND THING IS, GIVEN THAT COUNCIL WOULD BE THE AUDIT COMMITTEE, SO TO SPEAK, WHAT CONCERNS DO YOU HAVE FOR THE PORT SO WE CAN BE THINKING AHEAD, OR WHAT CONCERNS DID YOU HAVE THAT WE MIGHT NOT HAVE PUT IN A THOUGHT ABOUT?
>> FIRST, I THINK JIM AND THEN SHEILA.
THAT'S WHY WE WANTED TO MAKE IT PROACTIVE THAT YOU KNOW WE'RE HERE TO WORK WITH.
AS A TRUSTEE, AND BELIEVE ME, I KNOW OF NOTHING, I DON'T SUSPICION ANY PROBLEMS OF INTENT, BUT THERE'S NOT A ENTITY IN TOWN, WHO IF THEY GO THROUGH ONE OF THESE AUDITS, YOU'RE GOING TO FIND SOMETHING.
>> THAT'S THE PURPOSE OF IS TO FIND THEM, CORRECT THEM, DO THEM BETTER, MOVE ON.
AS A TRUSTEE, I ONLY GET WHAT MANAGEMENT GIVES ME.
I DON'T KNOW IF IT'S TRUE, CORRECT.
MONTH AFTER MONTH, LIKE YOU DO, WE GET A BOOK THIS THICK, PARKING, PROCUREMENT.
THERE ARE A NUMBER OF AREAS THAT WE'VE NEVER REALLY BEEN FULLY AUDITED.
WE GET A FINANCIAL AUDIT. WE GOT A CLEAN OPINION THIS LAST GO-AROUND, YOU'VE GOT A COPY OF IT.
WE'RE JUST TRYING TO DO THE JOB BETTER.
AS A FIDUCIARY AND A TRUSTEE, WE WANT TO HAVE COMFORT THAT PARKING IS OUR BIGGEST INCOME CONTRIBUTOR, CERTAINLY OUR BIGGEST NET INCOME CONTRIBUTOR.
IT OUGHT TO BE LOOKED AT. ARE THERE NUANCES OR ARE THERE MODERN WAY BEST PRACTICES WE CAN IMPLEMENT TO DO IT BETTER? THAT'S ALL.
I HAVE TO AGREE SOMEWHAT WITH MARIE THERE.
WE DON'T NEED ANOTHER COMMITTEE ON THE AUDIT, BUT SOMEBODY MENTIONED FINANCE COMMITTEE.
IT MIGHT BE GOOD TO REVISE THEIR CHARTER OR THEIR MISSION STATEMENT TO INCLUDE AUDIT.
I'VE BEEN IN YOUR CHAIR BEFORE.
YOU GIVE GLENN ABOUT 15 MINUTES WHEN HE COMES THROUGH HERE TO DISCUSS HIS AUDIT PLAN, NOBODY UNDERSTANDS IT.
NOBODY REALLY WANTS TO TALK ABOUT IT.
YOU GIVE HIM 15 MINUTES AND GLENN, GO DO WHAT YOU SAID YOU'RE GOING TO DO. TELL US IF YOU'VE GOT A PROBLEM.
RISK ASSESSMENT IS A BIG ISSUE IN THE ENVIRONMENT, ESPECIALLY WITH TECHNOLOGY.
MAYBE YOUR FINANCE COMMITTEE CAN TAKE THAT ASSIGNMENT, ALL OF THAT, ANOTHER COMMITTEE TO DO THAT, BUT ALL WE'RE SAYING IS ALL OF US NEED TO BE RECEPTIVE TO SOMEBODY LOOKING OVER OUR SHOULDER TO DO THINGS BETTER, AND THAT'S ALL WE WANT. I THINK.
[01:30:01]
THESE COMMITTEE MEETINGS, QUARTERLY, TO ME, ARE A FINE EXAMPLE OF INTEGRATING THE PORT AND THE CITY AND THE PARK BOARD, CREATING RELATIONSHIPS THAT MAYBE EXISTED, MAYBE DIDN'T, BUT STRENGTHENING THEM SO THAT WE ARE ALL WORKING TOGETHER FOR GALVESTON.
IT WAS FROM THAT THAT WE TALKED ABOUT SENDING A LETTER TO YOU ALL, NOT IN ANY WAY POLITICALLY MOTIVATED, BUT RATHER TO SAY, WE ARE ONE.
WE DON'T WANT TO GET INTO A HEAD BUTTING CONTEST AS OUR GOOD FRIENDS AND COLLEAGUES AT THE PARK BOARD HAVE DONE.
IF YOU HAVE SOME CONCERNS ABOUT US, WE STAND READY TO RECEIVE THEM.
THAT WAS THE WHOLE PURPOSE OF IT.
>> THAT'S WHAT ALICE WAS ASKING HIM, I THINK.
>> IT WAS JUST GENERALLY, BUT I GOT SOME ANSWERS.
>> WHAT CONCERNS SHOULD WE BE HAVING OR WORRYING ABOUT, OR WHAT CONCERNS DOES THE TRUSTEES HAVE?
>> I THINK YOUR AUDITOR, AND I'VE NEVER MET YOUR AUDITOR, BUT I'M SURE HE COULD BE WELL-VERSED.
THE KEY IS REALLY DOING A RISK ASSESSMENT.
I THINK SOME BODY, SOME ENTITY SHOULD DO A RISK ASSESSMENT THAT FOCUSES ON THE PARKS BOARD, THE WHARVES BOARD, AND THEN THE CITY PROPER AND SEE WHERE YOUR MAJOR REVENUE SOURCES ARE AND THOSE TYPES OF THINGS, AND THEN MAKE A AUDIT PLAN BASED ON THAT RISK ASSESSMENT.
>> WE'VE GOT THIS TRAVEL AUDIT.
WE SPEND 150,000 A YEAR IN TRAVEL.
>> SPEND $50,000 A YEAR IN TRAVEL.
IS THAT MORE IMPORTANT THAN $20 MILLION RUN THROUGH THE PARKING RISK ASSESSMENT? WE MAY HAVE SKINNED SOMEBODY A FEW BUCKS OUT OF TRAVEL AND WE MAY NOT HAVE A RECEIPT THAT MATCHES THE BREAKFAST WE HAD WITH SOMEBODY AT THE CONFERENCE, 150,000 IN OUR OPERATION IS NOTHING.
WE OUGHT TO BE LOOKING AT THE $20 MILLION PARKING OR THE $70 MILLION WORTH OF PROCUREMENT PROCESS WE GO THROUGH AND NOT WASTE GLENN'S TIME ON A $150,000 TRAVEL.
THAT'S THE TYPE OF THING WE'RE INTERESTED.
>> I THINK WHAT WE'RE COMMUNICATING NOW, MAYOR, IS WE'RE OPEN.
I DON'T KNOW THAT WE NEED TO HAVE A LETTER NOW BECAUSE WE ARE COMMUNICATING TO YOU.
HAVING THIS QUARTERLY MEETING, WE'RE OPEN FOR BUSINESS AND OPEN FOR INSPECTION.
>> THAT'S GOOD. WE HAVE DAVID AND THEN BEAU.
>> ONE OTHER ITEM. JIM, YOU SAID CORRECTLY, LOOK AT YOUR BIG BUCKETS.
ANOTHER ONE THAT YOU OUGHT TO TAKE A LOOK AT IS GOING TO BE YOUR CONSTRUCTION CONTRACT.
WHEN YOU'RE SPENDING 55,100 MILLION 120, WHATEVER, THOSE THINGS, BOTH FROM A CONTRACTUAL OBLIGATION, ENSURING THAT YOUR PROCUREMENT GROUP, FINANCE GROUP, AND YOUR GENERAL CONTRACTOR ARE PERFORMING AND ADHERING TO THAT CONTRACT IS CRITICAL.
YOU CAN FIND, AS I DO REGULARLY, ONCE A QUARTER ON MY PROJECT, WE FIND ERRORS AND OMISSIONS AND CORRECTIONS ALONG THE WAY.
I WOULD ADD THAT THAT ONE NEEDS TO BE A CRITICAL ONE THAT NEEDS TO BE LOOKED AT.
>> THE MAIN THING IS THAT ALL OF THIS INFORMATION AND FACTS IS ALL THE PEOPLE OF GALVESTON, IS JUST NOT US.
THAT TRANSPARENCY HAS BEEN REALLY IMPORTANT TO ME AND WHY I'VE HAD SUCH AN ISSUE WITH OUR CURRENT AUDIT PROCESS WITH THE PARKS BOARD.
BUT LOOKING AHEAD, ONE OF THE THINGS AND GROUPING ALL OF THIS TOGETHER, AS SOME OF YOU MIGHT KNOW AND THE BILLS THAT ARE BEING PRESENTED IN AUSTIN RIGHT NOW, IT'LL REALLY AFFECT ALL OF US, ESPECIALLY IF YOU LOOK AHEAD TO OUR DISCUSSION OF THE ALLOCATION OF HOTEL OCCUPANCY TAX TO THE PORT OF GALVESTON.
ONE THING IN COMBINATION WITH THIS DISCUSSION OF AUDITS, AND WITH THE STATE CREATING THIS MICROSCOPE OF ONE MUNICIPALITY, WHICH IS THE CITY OF GALVESTON, THAT'S ONE BIG REASON AND ONE THING WE'RE GOING TO HAVE TO CLOSELY PAY ATTENTION TO AS A PARTNERSHIP BETWEEN THE PORT AND COUNCIL.
BECAUSE THERE'S GOING TO BE SO MUCH SCRUTINY REGARDLESS OF ALL THREE BILLS
[01:35:01]
PASSED OR ONE BILL PASSES OF WHAT WE'VE GOT GOING ON.I THINK JUST LOOKING AHEAD AND MAKING SURE THAT THAT IS ONE OF OUR RISK ASSESSMENTS THAT'S GOING TO BE A TOP PRIORITY, JUST TO MAKE SURE THAT WE DON'T AFFECT OUR TAXPAYERS AND HOW THAT MONEY IS SPENT BECAUSE WE MISSPEND IT ACCORDING TO THEIR DEFINITION IS A BIG PART OF THIS.
I'M REALLY GLAD THAT WE HAVE THESE SO THAT WE CAN BE LOOKING AT THINGS LIKE THAT.
>> ONE OF THE THINGS I'VE BEEN A PROPONENT OF FOR OUR AUDIT DEPARTMENT, AND I SAID IT MANY TIMES, 12 INCHES IS 12 INCHES.
IF WE'RE GOING TO LOOK AT PARK BOARD ISSUES, WE SHOULD ALSO LOOK AT CITY AND THE PORT AS WELL IN THE SAME REALM.
I THINK THAT'S GENERALLY WHAT WE'RE ALL EXPECTING.
BUT WHAT I WANT TO SEE IS PROCUREMENT THAT'S BEEN LOOKED AT AND THAT IS PRESENTING ITSELF TO BE AN ISSUE.
WHAT I DON'T WANT TO DO IS LEAVE OUT THE CITY ASPECT OF THAT WHICH IF WE'RE GOING TO LOOK AT PARK BOARD, WE SHOULD LOOK AT PORT AND THE CITY AND WE SHOULD HAVE THE SAME STANDARD ACROSS ALL THREE.
>> THEN WE SHOULD LOOK AT EXPANDING THE AUDITING DEPARTMENT.
>> THAT TOO. MAYBE FROM [OVERLAPPING].
>> NOW THEY'RE OVERWHELMING WHAT YOU HAD MENTIONED MAYBE THERE'S A COST SHARING TO THAT.
MAYBE HOW YOU BOLSTER OUR DEPARTMENT IS BY COST SHARING INTO A POSITION OR TWO AND THE PARK BOARD DO THE SAME, IN THAT WAY, WE HAVE-
>> ADEQUATE STAFF. BUT AGAIN, THE FACT REMAINS IT NEEDS TO BE OBJECTIVE, AND IT NEEDS TO BE LOOKED AT NOT FROM A POLITICAL POSITION, BUT SOMETHING OF THERE'S A PROBLEMS, LET'S FIX IT, AND LET'S MOVE ON FROM THAT.
TO THE POINT ABOUT THE BILLS, IT'S HARD NOT TO DRAW CAUSATION FROM OUR SCRUTINY THAT WE PUT ONTO PARK BOARD AND THESE BILLS COMING OUT ABOUT THE ALLOCATION OF THE HOT TAX, SO TO SPEAK.
WHEN SOMETHING HAPPENS, THERE'S A EQUAL OR GREATER REACTION, AND IT IT CATCHES US ON OUR HEELS, AND I DON'T WANT TO SEE THAT HAPPEN.
I DON'T KNOW HOW THE CITY WOULD DO IT TO OURSELVES, BUT WITH THE PORT.
I DON'T THINK THAT WARS BOARD IS LOOKING TO DO THAT OR HAS ANY INTEREST IN DOING THAT.
>> ONE THING WE ALL APPRECIATE IS HOW TRANSPARENT YOU ARE.
>> FOLLOW UPS. I APPLAUD YOUR COMMENTS.
I CAN CALL LOTS OF THINGS, BUT HYPOCRITES NOT ONE.
IT'S GOOD FOR THE PORT. IT'S GOOD FOR THE PARK BOARD. IT'S GOOD FOR THE CITY.
>> THE GOOD NEWS IS THE STANDARD IS SET THE STANDARD IS STATE LAW.
THEY HAVE A PRETTY DETAILED PROCUREMENT, IN PARTICULAR, THEY HAVE PROCESSES THAT YOU HAVE TO MEET AND DO AND MAYBE WE DON'T HIRE NEW STAFF.
MAYBE PART OF IT AT LEAST INITIALLY IS CONTRACTED THROUGH GLENN'S OFFICE WITHOUT ADDITIONAL STAFF THAT RUNS. BUT IT'S LIKE ANYTHING ELSE.
I DON'T KNOW ANYTHING ABOUT THE PARK BOARDS ISSUES. BUT AT THE PORT.
SOME OF THE STUFF YOU'LL LOOK AT HAS NEVER BEEN LOOKED AT IN A DETAILED IF IT MEETS THE CRITERIA FOR THE EXTERNAL AUDITORS THRESHOLD, THEY'LL LOOK AT SOME THE LONGER YOU GO WITHOUT LOOKING, THE MORE STUFF YOU'RE GOING TO FIND.
>> YEAH, OR NOT. A LOT OF THIS STUFF IS JUST HISTORICAL.
SOMEBODY TRAINED SOMEBODY THE WAY THEY DID IT, AND THEY JUST FOLLOW IT.
THAT'S HOW THINGS NOT NEFARIOUS OR INTENTIONAL.
THE LONGER WE GO WITHOUT LOOKING AT OURSELVES, THE MORE WE'RE GOING TO HAVE TO CORRECT.
AS SOON AS WE GET ON TOP OF IT AND NEXT TIME YOU LOOK AT IT, THE LIST GO FROM HERE TO HERE AND EVENTUALLY, YOU GET IT WHERE IT'S WHERE YOU WANT IT.
I AGREE TO SEE ALL OF US ARE TO BE GO OF THAT SAME ENTROPY OCCURS. ABSOLUTE OVER TIME.
>> I LIKE RICHARD'S IDEA ABOUT WHETHER IT'S A NEW COMMITTEE OR IT'S IN AN EXISTING COMMITTEE, THAT WE HAVE THE PARTICIPATION OF ALL THOSE WHO ARE GOING TO BE AUDITED.
THAT IS THE PART. WITH IN THE CITY COUNCIL, ALL GETTING IN THE ROOM AND TALKING ABOUT WHAT THE RISK ASSESSMENT IS.
THAT'S A GREAT WAY TO FIRST OF ALL, BUILD YOUR COLLABORATION SKILLS BECAUSE THAT'S ONE OF THE HARDEST THINGS TO DO, BUT ALSO TO BEGIN TO BUILD TRUST BETWEEN ALL OF THESE THREE INSTITUTIONS, ALL THESE THREE GROUPS RIGHT HERE, BECAUSE WITHOUT THAT, YOU CAN'T GET ANYWHERE.
IN FACT, WE'RE IN THAT TRUST WE DUCK OURSELVES A HOLE WITH TRUST WITH THE PARK BOARD AND WE'RE TRYING TO DIG OUT OF IT.
THIS TO ME IS A WAY TO TO WORK ON THAT AND TO GET BETTER AT IT, AND ALSO BE MORE EFFICIENT AT THE WORK OF THE AUDITORS.
THEY'RE REALLY AUDITING THE THINGS THAT MAKE A DIFFERENCE, TO JIM'S COMMENT, DO WE NEED TO BE
[01:40:03]
AUDITING MEALS OR SOMETHING LIKE THAT WHEN WE GOT THIS HUGE PARKING?>> THE FACT THAT WHAT YOU SAID THE CITY COUNCIL DUG OURSELF A HOLE, I DISAGREE WITH THAT 100%.
>> I'M NOT SAYING WHO DUG A HOLE AT ALL.
I'M JUST SAYING THERE WAS A HOLE THAT WAS DUG.
SEE THAT'S RIGHT TO MY POINT ABOUT BUILDING TRUST.
I'M NOT TRYING TO BLAME ANYBODY FOR THIS HOLE WE DUG, BUT THE MORE WE CAN WORK TOWARDS THAT, THE BETTER WE'RE GOING TO BE THE MORE EFFICIENT WE'RE GOING TO BE, THE BETTER WE CAN SERVE EVERYBODY.
>> I KNOW JEFF WANTS TO SAY SOMETHING, COUNCIL, WE WILL START OUR DISCUSSIONS COMING UP HERE IN PROBABLY ABOUT EIGHT WEEKS CONSIDERING OUR NEXT YEAR'S AUDIT PLAN.
WE'LL COME BACK TO THIS AND MAKE SURE THAT WE KEEP THOUGHTS THAT THE WHARFS BOARD IS RELAYING TO US.
KEEP THOSE IN OUR MIND AS WE PUT TOGETHER OR NOT THE PLAN FOR THIS COMING YEAR.
>> NO, ONLY THOUGHT I JUST HAVE A THOUGHT IS YOU GUYS WE'RE TALKING ABOUT THAT.
WE TALKED ABOUT NOT CREATING MORE COMMITTEES, WHICH I'M FULLY A SUPPORTER OF.
WE HAVE THESE JOINT MEETINGS WITH COUNCIL.
MAYBE THERE'S AN OPPORTUNITY TO HAVE THE JOINT MEETING WITH THE FINANCE COMMITTEE THE CITY AND THE PARK BOARD AND THE WHARVES BOARD. WE'VE GOT THE ENTITIES THERE.
MAYBE THAT'S THE LOGICAL GROUP TO GET TOGETHER TO HAVE SOME, YOU TALK ABOUT BUILDING COLLABORATION AND THOUGHT MAYBE THAT'S AN OPPORTUNITY FOR THOSE ENTITIES TO WORK TOGETHER.
>> FINANCE COMMITTEE USED TO WORK.
I THINK THAT CHANGED SOMEWHERE IN ALONG 2014/15.
>> I DON'T KNOW IF YOU ARE COMMITTED. [NOISE]
>> THE SUNSET COMMITTEE IS THE ONLY ONE WE NEED TO CREATE.
>> THAT'S AN OPPORTUNITY THERE MAYBE FOR FURTHER COLLABORATION WITH AT THE FINANCE COMMITTEE LEVEL.
>> THAT MOVE TO THE NEXT ITEM.
[3.D Discussion of Alternate Revenue Sources (Finklea/Porretto)]
>> LET'S MOVE TO ITEM 3D, YES MA'AM.
>> ITEM THREE D. DISCUSSION OF ALTERNATE REVENUE SOURCES.
>> I KNOW WE HAVE TWO COUNCIL MEMBERS THAT WANT TO MENTION SOME THINGS ON THAT.
BEFORE WE GET TO THAT, COUNCIL, AS YOU MAY REMEMBER, WE TASK OUR CITY MANAGER TO GET WITH LODGER TO LOOK AT POSSIBLE ALTERNATIVE REVENUES AND PROGRAMS THAT COULD COULD BRING BACK TO US THAT WOULD BENEFIT THE CITY.
BRIAN GAVE A REPORT TO US THAT THE PORT IS MOVING ALONG VERY EFFICIENTLY.
THIS IS NOT THE TIME TO GET INTO LOOKING AT ALTERNATIVE REVENUE SOURCES AT THIS PARTICULAR POINT IN TIME.
I THINK BRIAN MENTIONED THAT WE NEED TO RE LOOK AT THIS, MAYBE COMING UP IN THE FUTURE AT SOME POINT IN TIME.
DAVID, I'M GOING TO TURN IT OVER TO YOU AND ALEX.
>> GREAT. WELL, I WANT TO GO TOTALLY AGAINST THAT.
I'D LIKE TO REMIND THIS GROUP WHAT WE TALKED ABOUT LAST TIME.
GIVE YOU SOME BASELINE INFORMATION THAT WE SHARE SOME COMMENTS THAT WERE GIVEN BY A TRUSTEE.
THEN I WANT TO OPEN THIS UP FOR DISCUSSION.
THE BASELINE INFORMATION I'M GOING TO GIVE COMES FROM A MARTIN AND ASSOCIATES REPORT THAT WAS DONE IN 2023 THAT SPOKE TO THE ECONOMIC VALUE OF THE PORT.
FOR EXAMPLE, WHEN WE TALK ABOUT WHERE ALL ARE GENERATING REVENUE AND THE BENEFIT THAT IT PROVIDES TO THE COMMUNITY.
LET ME RATTLE THESE OFF REAL QUICK.
CARGO CREATES 123 MILLION IN STATE AND LOCAL TAXES.
CRUISE CREATES 25 MILLION IN STATE AND LOCAL TAXES.
THE FOURTH CRUISE TERMINAL WAS ESTIMATED TO CREATE $5.1 MILLION IN ADDITIONAL STATE AND LOCAL TAXES.
WITH THAT, I WANTED TO MAKE SURE THAT YOU UNDERSTAND THAT IT WAS COUNCIL'S SUPPORT OF THE DEVELOPMENT OF THE PORT, THE SIGNING OFF ON THE TWO RECENT BONDS THAT WE DID.
IT'S OUR INITIATIVE THAT HELPED GENERATE THE ADDITIONAL REVENUE ABOVE AND BEYOND THE CURRENT PAYMENT IN LIEU OF TAXES THAT WE RECEIVED FROM THE PORT, WHICH IS ORIGINALLY ESTABLISHED, WHATEVER 40, 50 YEARS AGO, AT $160,000 A YEAR. $160,000 A YEAR.
NOW, I DO WANT TO READ FROM SECTION 9 IN THE CHARTER BECAUSE THAT GIVES YOU ALL SOME RESPONSIBILITY AND SOME OPPORTUNITY.
FROM THE ANNUAL NET INCOME REMAINING IN EACH FISCAL YEAR AFTER PAYMENT OF ALL CURRENT MAINTENANCE AND OPERATING EXPENSES, THE GALVESTON WHARVES SHALL PAY TO THE CITY THE SUM OF $160,000 OF WHICH 25 AND 39 100% SHALL BE PAID TO THE GALVESTON INDEPENDENT SCHOOL DISTRICT.
AND THE REMAINDER THEREOF SHALL BE FOR GENERAL CITY PURPOSES.
ALL OTHER NET REVENUE FOR THE GALVESTON WHARVES SHALL BE RETAINED THEREBY FOR THE BETTERMENT AND EXTENSION OF THIS UTILITY TO THE BENEFIT AND ADVANTAGE OF THE CITY PROVIDED THE
[01:45:04]
SHALL NOT PREVENT THE BOARD OF TRUSTEES FROM AGREEING TO AND CONTRACTING TO PAY THE CITY AT A REASONABLE AND PROPER RATE FOR SUCH SPECIAL SERVICES FURNISHED BY THE CITY OF GALVESTON EXCUSE ME, FURNISHED BY THE CITY TO GALVESTON WHARVES AS WOULD NOT CUSTOMARILY BE FURNISHED TO OTHER BUSINESSES OR UTILITIES OR IF SO FURNISHED WOULD NOT BE FURNISHED WITHOUT A CHARGE BEING MADE THEREFORE.SERVICES. SERVICES, I'M GOING TO INCLUDE BENEFIT IN THAT BECAUSE ALL MANAGE ON BEHALF OF THE CITY, THE MOST VALUABLE LAND IN THE CITY.
TO THAT END, CITY COUNCIL HAS UNDERTAKEN ACTIONS TO SUPPORT THE PORT FINANCIALLY BY SUPPORTING THE BONDS, WHICH ALL WE'VE ISSUED.
THEN ALSO DRAINAGE PROJECTS, WHICH DIRECTLY BENEFIT THE PUMP STATION PROJECTS THAT THE CITY IS FINANCING FOR THE BETTERMENT OF THE PORT PROPERTY.
EXCUSE ME. CITY PROPERTY PORT MANAGES.
I MAY USE THAT INTERCHANGEABLY.
I WANTED TO START WITH THAT BECAUSE I WANT TO THINK ABOUT THE BENEFIT THAT THE PORT RECEIVES FROM THE CITY FOR THE INFRASTRUCTURE INVESTMENTS, AND IS THAT COMMISERATE WITH THE PAYMENT IN LIEU OF TAXES? ARE THERE OTHER SERVICES THAT WE COULD PROVIDE TO YOU? FOR EXAMPLE, AUDIT.
ARE THERE OTHER SERVICES? ONE OF THE THINGS THAT I'VE LOOKED AT REPEATEDLY IS THE IDEA OF SHARED SERVICES.
ALL HAVE YOUR OWN PROCUREMENT DEPARTMENT, FINANCE DEPARTMENT, LEGAL DEPARTMENT.
WHAT ALL THINK ABOUT THAT FOR A LITTLE BIT.
I JUST I WANTED TO THROW THAT OUT THERE.
OUR MANAGEMENT HAS SAID THIS IS NOT THE RIGHT TIME TO DO THIS.
THAT'S FINE. BUT THERE IS GOING TO COME A TIME.
WHETHER IT BE THROUGH CHARTER AMENDMENT, THROUGH AN INTERLOCAL AGREEMENT.
I'M LOOKING TO YOU THE BOARD OF TRUSTEES TO MAKE RECOMMENDATIONS ON WHAT THAT LOOKS LIKE IN THE FUTURE.
>> ALEX. TO PIGGYBACK OFF OF THAT.
I WANT EVERYBODY TO TAKE A DEEP BREATH WHEN WE TALK ABOUT MONEY BECAUSE WHEN THEY ARE OUT HERE.
BODY'S CONCERN AND YEAH, IT IS BEFORE WE GET INTO ANYTHING, I KNOW THAT THE IDEA HAS BEEN KICKED AROUND ABOUT A PERCENTAGE OF-
>> GROSS REVENUE. ALMOST [OVERLAPPING] I WANT THAT OFF THE TABLE.
I THINK GOING INTO GROSS REVENUE IS A BAD IDEA.
I THINK YOU HAVE BOTTOM LINES TO CARRY, AND IF WE'RE DIGGING INTO YOUR BOTTOM LINE OR PART OF THAT, I THINK THAT'S NOT APPROPRIATE.
JUST I KNOW THAT AT LEAST TWO COUNCIL MEMBERS FEEL THAT WAY, PROBABLY MORE.
BUT WE HAVE AS DAVID SAID WE HAVE THESE PUMP STATIONS.
WE HAVE ABOUT MILLION DOLLARS FROM IDC GOING TO THE 37TH STREET AND HARBORSIDE.
WE HAVE THE 14TH STREET ONE, THAT'S COST OVERRUNS A BIT OF AN ISSUE.
WE'VE HAD TO SPLIT IT UP IN TWO DIFFERENT PROJECTS.
BUT, IT DOES BENEFIT THE PORT.
MAYBE THERE'S SOME OPPORTUNITY TO WORK WITH THE CORPORATE PARTNERS AT THE CRUISE LINES.
I KNOW THEY'RE PUTTING IN A LOT OF MONEY FOR CAPITAL INVESTMENT.
BUT AGAIN, THIS IS SOMETHING THAT WE WOULD LIKE THE WHARVES BOARD TO CHEW ON.
SOMETHING THAT WE HAVE COSTS AS WELL THAT ARE GOING TO BE AS A BYPRODUCT BENEFITING PORT.
THE 160,000, THE ADDITIONAL REVENUE FROM THE PARKING, THE ADDITIONAL REVENUE FROM, SOME OF THE TARIFFS, YOU KNOW WE HAVE ESSENTIALLY 40 YEAR CONTRACTS WITH THESE CRUISE LINES.
WHAT WE NEED TO START LOOKING AT IN THE FUTURE IS HOW DO WE MAXIMIZE THAT AND HOW DO WE MAXIMIZE THE BENEFIT NOT ONLY TO THE PORT, BUT TO THE CITY AND TO CORPORATE PARTNERS?
I WANT TO MAKE SURE THAT ALL UNDERSTAND THAT WE ARE NOT ADVOCATING FOR.
ONE IS RENEGOTIATING YOUR CONTRACTS WITH THOSE CRUISE LINES.
THAT'S YOUR BUSINESS, AND WE GET IT.
THE OTHER THING IS, IS THAT WE'RE NOT ASKING FOR THIS HUGE PIECE OF PIE BECAUSE WE UNDERSTAND THAT YOU DO HAVE DEBT OBLIGATIONS,
[01:50:03]
AND WE WOULD NEVER, EVER WANT TO ASK FOR MORE MONEY THAT WOULD STRAP YOU FROM MEETING THOSE BOND OBLIGATIONS.THIS IS JUST AN OVERTURE TO START THE DISCUSSION IN SOME FORMAL FASHION.
>> I DO WANT TO MAKE SURE THAT YOU UNDERSTAND THAT.
>> THAT'S ONE OF THE THINGS THAT NEEDS TO BE DRIVEN HOME, IS WE'RE NOT LOOKING TO GO INTO YOUR POCKET AND TAKE MONEY THAT YOU-ALL NEED FOR OPERATIONS.
>> I THINK WE HAVE A COUPLE OF TRUSTEES THAT WOULD LIKE TO COMMENT.
MY INITIAL COMMENT IS [OVERLAPPING].
>> SORRY. ONE OF THE THINGS I THINK THAT THERE'S AN OPPORTUNITY FOR IS HARBORSIDE.
IT LOOKS LIKE BEIRUT WHEN YOU DRIVE IN, AND HOW DO WE CLEAN IT UP ALL THE WAY FROM 45, DOWN TO PIER 10, MAYBE DOWN FURTHER AS WELL, AND I THINK THAT'S SOMETHING THAT MAYBE THE CORPORATE PARTNERS OR SOMEONE THAT WE COULD DISCUSS ABOUT HOW WE GET THAT DONE.
I'M NOT ADVOCATING FOR MONEY TO BE PUT INTO A GENERAL FUND THAT CAN BE USED FOR WHATEVER REASON.
IT NEEDS TO GO SPECIFIC TO INFRASTRUCTURE.
IF THAT MEANS INFRASTRUCTURE AT THE PORT, IF THERE'S A WAY TO GENERATE MORE OF THAT, AND ALSO INFRASTRUCTURE AT THE CITY ON THAT PORT INDUSTRIAL HARBORSIDE AREA, I THINK THAT'S THE BIGGEST FOCUS, THE BIGGEST FUNCTION THAT SERVES NOT ONLY THE PORT, BUT THE CITY AND CITIZENS, PEOPLE AT ET AND B, EVERYBODY USES THAT ROAD.
WE'VE GOT SOME IDEAS BUT WE WANT TO KICK IT TO YOU-ALL SO YOU CAN GIVE US SOME FEEDBACK AND UNDERSTAND THAT WE DO HAVE COSTS ASSOCIATED WITH THE SAME CONCERNS; THE TRAFFIC, THE DRAINAGE.
THAT'S WHERE WE'RE COMING FROM.
WE'RE NOT TELLING, WE'RE ASKING.
>> IF I RESPOND AND WE HAVE A COUPLE OF OTHERS, OUR BIG COMMITMENT COMING UP IS THE $2 MILLION FOR THE PELICAN ISLAND BRIDGE.
ROGER'S WORKING ON SOMETHING EVEN BIGGER THAN THAT WITH HARBORSIDE.
ROGER, ARE YOU OKAY TO LET THE COUNCIL AND THE CITY KNOW WHAT WE'RE WORKING ON?
>> IT'S NEW, BUT OBVIOUSLY, WE RECEIVED MONEY FROM HGAC, JUST TO STAY THE FEASIBILITY OF AN ELEVATED HIGHWAY FROM 45 TO THE PORT BASICALLY.
WE'RE GETTING READY TO GO THROUGH THAT PROCESS NOW.
I'VE BEEN TALKING AND THIS IS A LITTLE BIT CART BEFORE THE HORSE BECAUSE THERE'S SOME THINGS THAT ARE HAPPENING ON BELK ISLAND, WHICH I THINK WILL HELP OUR CASE IN WASHINGTON ON THIS PARTICULAR ISSUE.
I THINK THAT ONE OF THE THINGS AND I WOULD SAY IS WHAT YOU MAY NOT REALIZE IS ALL THE WORK THAT WE DO FOR THE CITY BECAUSE EVERY PROJECT THAT WE DO IN THE PORT DRAINS THE CITY AND WE ARE RESPONSIBLE FOR ALL THE INFRASTRUCTURE ON THE PORT WHEN IT GETS TO HARBORSIDE DRIVE AND THEN WHEN IT GETS NORTH OF HARBORSIDE DRIVE, IT'S US THAT'S PAYING FOR ALL THE SUBSURFACE WORK, THE DRAINAGE, THE STORM DRAINAGE, ELECTRICAL POWER THAT GOES, I MEAN, I THINK THAT YOU'RE RIGHT.
I THINK WE SHOULD SIT DOWN AND REALLY TALLY IT BECAUSE I THINK THAT THERE IS A LOT OF UNRECOGNIZED THINGS THAT THE PORT DOES.
IT BENEFITS US TOO OBVIOUSLY BECAUSE WE DON'T PARSE IT FOR THAT INFRASTRUCTURE.
I THINK WHAT I'M TALKING ABOUT IS, WHAT NICK WAS ASKING ABOUT IS THIS POTENTIAL FOR US TO REDEVELOPING BASICALLY HARBORSIDE AREA AND IT'S A FOCUS FOR US.
I THINK THAT ONE OF THE THINGS THAT WE DO IS ONE IS THIS SAFE STREETS.
I THINK THAT THERE'S OTHER PEOPLE THAT NEED TO BE INVOLVED IN THIS.
AS YOU SAID, IT'S NOT JUST A BOARD. WE'RE ONE SIDE.
THERE'S PRIVATE ENTITIES ON THE OTHER SIDE THAT COULD BENEFIT FROM THIS.
BUT THIS PROJECT, I THINK IT'S GETTING SOME LEGS IN WASHINGTON, AND I THINK IF IT COULD IT'S NOT JUST A PORT PROJECT, IT'S GALVESTON PROJECT.
>> I WOULD I WOULD SAY ABOUT HARBORSIDE, ALEX, THERE WAS AN EXTENSIVE STUDY DONE ON IMPROVING HARBORSIDE, MAYBE SEVEN OR EIGHT YEARS AGO, SOMEWHERE AROUND THERE.
IT WORKED WITH [INAUDIBLE] ON THAT.
PROBABLY IF YOU REALLY WANT TO LOOK AT THAT, WE COULD RESURRECT THAT STUDY.
IT WAS A WONDERFUL STUDY THAT WAS DONE.
[01:55:03]
>> I WANT TO BE CLEAR. AND SOME OF THIS PREDATES YOU BEING AT THE PORT, BUT I DON'T THINK THAT COUNCILS DOESN'T REALIZE THE THINGS THAT YOU ALL DO.
A LOT OF THE THINGS THAT YOU DO DOWN THERE DOES GO UNRECOGNIZED.
THE COST ASSOCIATED WITH IT, SOME OF THAT IS UNRECOGNIZED.
BUT I DON'T THINK BY THIS, COUNSEL.
I THINK WE UNDERSTAND THE AMOUNT OF MONEY AND TIME AND EFFORT THAT YOU ALL PUT BACK IN YOUR INFRASTRUCTURE.
[OVERLAPPING] BUT I KEEP UP WITH THE THINGS HAPPENING AT DC AND ESPECIALLY THINGS THAT GALVESTON SPECIFIC.
I, AGAIN, APPLAUD EVERYTHING THAT YOU ALL DONE, BIT I THINK THERE'S WAYS TO MOVE FORWARD, BUT JUST UNDERSTANDING TOO THAT THERE'S A COST ASSOCIATED ON OUR END WITH SOME OF THESE PROJECTS AND I THINK YOU DO,.
>> WE'RE NOT WE'RE NOT SUGGESTING THAT WE GO INTO YOUR.
THAT'S THE THING THAT I WANT TO BE 100% ON THAT WE UNDERSTAND THE CONCERNS THAT YOU ALL HAVE, BUT ALSO UNDERSTAND THE CONCERNS THAT WE HAVE.
AND I THINK GROWING THAT HOWEVER MANY YEARS DOWN THE ROAD, IT CAN BE AND PREDATING YOU, IN THE 90S, 70S, WE HAD YOU KNOW BONDS THAT WERE PASSED FROM THE CITY THAT WERE AFFECTING THE CITY'S.
I MEAN, ANYBODY HERE LONG ENOUGH REMEMBERS THE 90S IN THE PORT.
I MEAN, THAT WAS AN ISSUE WHERE THE CITY WAS GIVING TO THE PORT, AND WE KIND OF WEREN'T GETTING ANYTHING BACK.
AND I THINK UNDER YOUR LEADERSHIP, WE'VE SEEN A LOT OF CHANGE AND HOW WE'RE GETTING THE PORT BACK ON ITS TWO LEGS.
>> IN YOUR OWN NUMBERS, REALLY, I MEAN, NUMBERS FROM THESE ECONOMIC STUDIES AND STUFF, THAT ALL TRICKLES BACK DOWN.
AND ONE THING I WOULD SAY IS FROM OUR PORT FROM MY STANDPOINT AS A PORT DIRECTOR I'VE BEEN HERE.
WE HAVE VOLUNTARILY PUT TOGETHER PROGRAMS TO GET MORE MONEY TO THE CITY.
I THINK THAT WE CAN TALK ABOUT THE 165, AND I AGREE ABOUT THE 165 AND THAT'S PART OF THE REASON WE HAVE THESE CONVERSATIONS IS HOW DO WE GET MORE MONEY?
>> IT WAS ME THAT WENT TO THE CONTRACTS AND SAID, LET'S PUT $0.25 IN HERE.
I DIDN'T WANT TO GIVE $1 PER DAY, THAT WASN'T ME.
I WAS WILLING TO GIVE $1, BUT THEN WE ENDED UP GIVING $1 PER DAY PER CAR.
ALL THOSE PROGRAMS HAVE COME INTO PLAY IN MY TENURE.
I JUST WANT YOU TO KNOW THAT THAT'S SOMETHING THAT WE WE AGREE IS A RESPONSIBILITY. ALL RIGHT.
AND I THINK AS WE MOVE FORWARD, AND WHAT WE REALLY WHAT WE'RE REALLY SAYING RIGHT NOW AND WHAT I SAY WITH BRIAN AND I AND DAN MET IS THAT, NOT TODAY, PLEASE.
WE ARE TRYING TO GET THINGS GOING AND GETTING BACK AND I SAY BACK ON OUR FEET, WE'RE DOING WELL.
WE'RE STILL CASH FLOWING, TWO AND A HALF MILLION DOLLARS A MONTH, BUT AS JIM HAS POINTED OUT, THAT TWO AND A HALF MILLION DOLLARS IS SPENT AND IT'S SPENT GOING INTO THE FUTURE FOR ANOTHER YEAR OR SO.
AND SO WE GOT TO MAKE SURE THAT WE DON'T HURT THAT.
I THINK I HEAR YOU'RE SAYING YOU DON'T WANT TO DO THAT EITHER.
>> I MEAN NOT TO CAST STONES, BUT I'M ONE OF THE YOUNGEST GUYS HERE, AND WE HAVE 40 YEAR CONTRACTS.
BY THE TIME I'M 70-YEARS-OLD, THOSE ARE GOING TO BE FULLY REALIZED.
I WANT TO MAKE SURE THAT THROUGH THROUGH BENEFICIAL RELATIONSHIPS AND COLLABORATION THAT WE ARE MAXIMIZING THAT 40 YEAR POTENTIAL FOR THE FUTURE FOR MY KIDS, MY GRANDKIDS, THAT'S REALLY WHAT I WANT TO MAKE SURE THAT WE THAT EVERYONE AT THE TABLE IS THINKING ABOUT IS MAXIMIZING THAT 40 YEAR CONTRACT THAT 40 YEARS THAT WE HAVE WITH THESE COMPANIES, AND LET'S BE GOOD.
>> SOME OF THE CONTRACTS THAT WERE DONE HAD NOTHING TO DO WITH ANY INFRASTRUCTURE, AND I KNOW THAT PART OF PART OF A LOT OF IT NOW IS PUTTING MONEY BACK INTO OUR INFRASTRUCTURE THAT NEEDED IT AT THE BEGINNING, BUT IT WASN'T DONE IN THE PAST.
>> AS MR. FINKLEY POINTED OUT, WE DO MANAGE, IN MY MIND, THE MOST POWERFUL PIECE OF REAL ESTATE THE CITY HAS.
MY JOB IS TO MAXIMIZE THOSE REVENUES. TWO STANCE POINTS.
ONE IS TO MAKE SURE THAT WE KEEP OUR JOB LEVELS WHERE WE ARE AND WE CONTINUE TO INCREASE EMPLOYMENT AND WE'RE NOT INCREASING EMPLOYMENT JUST TO MAKE JOBS.
WE'RE INCREASING EMPLOYMENT BECAUSE THAT WORKS THERE.
I THINK THAT'S ONE THING, BUT SECONDLY, I THINK THAT WE HAVE THE OBLIGATION TO SAFEGUARD YOUR ASSETS.
AND THAT'S WHERE ALL THIS MONEY IS GOING IS TO SAFEGUARD YOUR ASSETS AND I AGREE.
[02:00:06]
WE'RE SAYING THE SAME THING.YEAH. I THINK WE JUST NEED TO WE NEED TO GET CAUGHT UP.
I MEAN, WE'VE BEEN A WHIRLWIND.
>> [OVERLAPPING] IT IS MULTIPLE ENTITIES.
>> [OVERLAPPING] EVERYBODY WINS.
>> RIGHT OFF THE CAUSEWAY. TEXT HAD THAT STRUCTURAL PROBLEM.
THAT PUT A LOT IN JEOPARDY FOR THE FOR THE WIND TURBINE CARGO THAT WE HAD.
THEY'VE WORKED WITH US AND GOT I'M SURE YOU ALL HELPED WITH THAT CONVERSATION TOO TO MAKE SURE THAT WE CAN GET THAT CARGO THROUGH HERE AND OUT THE DOOR.
AGAIN, IT IS LIKE YOU SAID, IT'S A MULTITUDE OF THINGS WORKING TOGETHER.
>> WE GOT A GREAT TEAM AND THAT'S JUST MAKING IT HAPPEN.
WE'VE INVESTED EVERYTHING BACK INTO IT SO EVERYTHING.
>> I THINK SOME OF OUR TRUSTEES WOULD LIKE TO HAVE A COUPLE OF COMMENTS AND THE MAYOR'S ALWAYS VERY OBSERVANT EACH MONTH WHEN WE FIGURE OUT HOW MUCH MONEY WE'RE SENDING TO THE CITY AND IT'S APPROACHING $3 MILLION.
>> IT'LL BE FOUR MILLION PROBABLY.
>> WELL, I'M DELIVERING GOOD NEWS TODAY.
WE'RE GOING TO INCREASE THAT BY $1,500 A DAY NEXT YEAR.
WHEN WE ACTIVATE THE 1,700 SPACE PARKING GARAGE.
THAT'S GOING UP EVERY DAY. I THINK.
>> WE OFFERED THAT TO ASSURE COUNSEL.
EVERY ONE OF THE TRUSTEES I THINK ALL OF US, I KNOW ALL OF US.
KEEP THIS IN MIND. AND AS WE DEVELOP NEW CONTRACTS, WHETHER THAT BE WITH ONE OF THE CRUISE LINES OR OPPORTUNITIES, WE'RE GOING TO MAKE SURE THAT WE HAVE A CONTEMPLATION OF HOW DO WE GET SOME OF THAT GRAVY OVER HERE.
AGAIN, IT'S NOT DIPPING INTO OUR POCKETS.
IT'S NOT TAKING SOME EXISTING FUNDS THAT WE NEED FOR SOMETHING ELSE.
BUT AS WE LOOK TO THE FUTURE, BELIEVE ME, WE HAVE THIS CONVERSATION EVERY MONTH.
>> WE GAVE NUMBERS OUT EVERY MONTH.
WE LOOKED AT THOSE NUMBERS EVERY MONTH.
>> WE TALK ABOUT THE COMPONENTS OF THOSE NUMBERS.
ANY NEW OPPORTUNITY TO COME IN, REST ASSURED THAT WE'LL BE IN DISCUSSIONS WITH YOU TO GET A PIECE IN THERE FOR THE CITY TO INCREASE THAT FOR ME AND UP TO PLEASE VERY SIGNIFICANT NUMBERS.
>> RICHARD. SORRY. RICHARD, PLEASE.
>> I WOULD LIKE TO GO BACK TO MR. FINKLEY'S COMMENT ABOUT SHARED SERVICES.
>> I THINK I HAVE QUITE A BIT OF EXPERIENCE IN IMPLEMENTING SHARED SERVICES ACROSS THE UNIVERSITY ACROSS A STATE AGENCY.
AND I THINK IT WOULD BE VERY BENEFICIAL FOR THE CITY FOR THE TAXPAYER IF WE TOOK A SERIOUS LOOK AT THAT BECAUSE IT IS NOT DIFFICULT.
IT'S UNEASY AT FIRST, BUT IT IS NOT A DIFFICULT THING TO DO.
YOU HAVE TO DO IT RIGHT. YOU HAVE TO APPROACH IT AS A PROJECT.
YOU HAVE TO GET BUY IN ACROSS THE DIFFERENT AREAS, PARTICULARLY THE PEOPLE THAT MAY THINK THEIR JOB MIGHT GO AWAY, WHICH IS NOT AN INTENTION OF THAT.
BUT IT'S IT WOULD BE VERY BENEFICIAL TO LOOK AT IT.
I WOULD APPLAUD SUCH AN INITIATIVE.
I THINK THAT IF YOU COULD PUT TOGETHER THE BUYING BECAUSE YOU REALLY CAN, BECAUSE WE DON'T THINK ABOUT WHAT THE CITY'S BUYING POWER IS WHEN WE BUY SOMETHING.
WE DON'T THINK ABOUT DIFFERENT, LOOKS LIKE THAT.
THE KEY, A KEY IS AN APPROPRIATE GOVERNANCE STRUCTURE.
AND IT WOULD BE SOMETHING THAT IT WOULD REQUIRE THE CITY MANAGER TO GIVE UP A LITTLE BIT OF HIS OVERSIGHT BECAUSE THE OTHER ENTITIES THAT ARE INVOLVED ARE GOING TO HAVE TO HAVE AN APPROPRIATE SAY IN HOW THOSE SERVICES ARE DELIVERED.
BUT I I DON'T THINK YOUR CURRENT CITY MANAGER WOULD HAVE A PROBLEM WITH THAT.
I'VE WORKED WITH HIM BEFORE, AND YOU CAN ASK HIM ABOUT MY EXPERIENCE IN IMPLEMENTING SHARED SERVICES.
>> THIS WHOLE CONVERSATION WITH THE DIRECTION WE'RE TAKING, IT REMINDS ME I LIKE TO WATCH DOCUMENTARIES AND THERE'S SOMETHING CALLED ROCKUMENTARIES, OF PAST MUSICIANS WHO'VE GOTTEN RECORD DEALS AND WHERE THEY'RE ON TOP OF THE WORLD, THEY SIGN ON IT, NOT IN LINE, THEY'RE COMPLETE MET IT.
AND THEN YOU SEE WHAT THEY HAVE TO PAY BACK AFTER THEY'VE MADE IT.
TWO YEARS LATER, THEY'RE ON THE ROAD, STRUGGLING STILL LIVING ON THE MUM'S BASEMENT, WHATEVER.
THAT'S BECAUSE ON THE OUTSIDE, IT LOOKS LIKE THIS GUY'S MADE IT.
I MEAN, HE'S GOT EVERYTHING HE EVER WANTED.
BUT AFTER THE RECORD COMPANY GETS BACK TO THEIR TRAVELS EXPENSES, THEIR RECORDING EXPENSES, AND COME TO FIND OUT LATER ON CHARGING THE ARTISTS FOR RECORDINGS
[02:05:01]
THAT THEY WEREN'T EVEN THEY WERE ON TOUR WHILE THEY WERE GETTING CHARGED FOR THOSE RECORDING SESSIONS.ANYWAY, WE HAVE LOTS OF BILLS, AND WE'RE PAYING THEM RIGHT NOW AND '27 IS GOING TO BE A TOUGHER YEAR FOR US AS WELL.
IN YOUR COMMENTS, YOU MENTIONED THE WORD BETTERMENT.
I THINK WHAT WE'VE DONE FOR THE CITY OF GALVESTON IT'S BEEN BETTER.
>> TRUSTEE [INAUDIBLE] HAS A PRIOR APPOINTMENT, SO HE'LL BE LEAVING THE MEETING AT THIS TIME.
>> THAT'S OKAY. WHICH LEADS TO THE NEXT POINT AND PROBABLY THE NEXT TOPIC THAT WE'RE GOING TO BE DISCUSSING REAL SOON IS WHEN I GOT PUNCHED IN THE GUT SERVING ON THE BOARD WAS WHEN WE'RE APPROVING THINGS LEFT OR RIGHT IMPROVEMENTS ON THE WEST END, THIS THAT ANY OTHER.
FINALLY, WE'RE GOING TO GET MONEY TO FIX THIS BRIDGE THAT WENT OVER HARBORSIDE SO THAT OUR GUESTS CAN COME ACROSS.
I'M IN THE CITY A LOT FORMING FOR PEOPLE AND TALKING TO FAMILIES.
THE FAMILY FROM ILLINOIS, THIS ONE FROM DALLAS OR WHATEVER AND I SEE THEM PUTTING THEIR HEADS IN BEDS.
THE NEXT DAY, THEY COME TO THE PORT, AND THEY'RE STRUGGLING TO GET ACROSS TO HARBORSIDE TO THE CRUISE SHIP.
>> WELL, WE'VE GOT A BRIDGE RIGHT HERE, THEY COULD WALK OVER. LET'S GO AHEAD AND APPROVE THAT.
WELL, LET'S APPROVE IT. WELL, WE DON'T HAVE ENOUGH MONEY.
IN FACT, WE'RE ABOUT $5, $6 MILLION SHORT, AND MAYBE EVEN MORE.
HOW IS THAT POSSIBLE? I MEAN, WE LET THOSE PEOPLE SAY WE'RE RESPONSIBLE FOR THEM BEING HERE.
THAT NIGHT BEFORE, BUT YET THEY CAN'T GET COMFORTABLY ACROSS THE ROAD. THAT'S WHEN I THOUGHT.
>> I THINK WE'RE GOING BETWEEN 3D AND 3E, WE'RE COMING.
>> YEAH. WELL, I'M SUMMING UP MY COMMENTS BECAUSE THAT'S GOING TO BE THAT'S WHAT I'VE SAID.
>> WE HAD MARIE AND THEN DAVID AND BOB.
>> I WAS JUST GOING TO MAKE A COMMENT ABOUT SHARED SERVICES.
NUMBER 1, DON'T THINK IT'S THE TIME TO TALK ABOUT THAT WITH THE CITY BECAUSE THE FACT THAT WE'RE ON A HIRING FREEZE AND WE DON'T HAVE ENOUGH STAFF OR UNDERSTAFFED RAIN AND A NUMBER OF DEPARTMENTS, I THINK WE NEED TO GET OUR OWN HOUSE IN ORDER BEFORE WE START SHARING SERVICES.
ALTHOUGH I'M NOT AGAINST THE IDEA.
IT'S SOMETHING WE NEED TO GET ON.
>> I APPRECIATE YOUR COMMENTS.
I THINK WHEN WE START TALKING ABOUT WHY WE PUT THIS ITEM ON THE AGENDA, [NOISE] I WOULD LOVE TO SEE A COLLABORATION FOR THE FUTURE PARTNERSHIP FOR THE IMPROVEMENT OF YOUR FRONT DOOR, WHICH IS HARBORSIDE.
THE SUPPORT AND ENDORSEMENT FOR YOUR EFFORTS WITH TEXTO FOR AN ELEVATED, WHATEVER THAT IS.
MAYBE THAT BECOMES THE CONDUIT BY WHICH WE LOOK FOR A LEVERAGED INVESTMENT BETWEEN THE WHARVES BOARD OF TRUSTEES AND THE CITY.
THAT'S VERY SINGULAR. YOU CAN TOUCH IT.
I THINK IT'S AN EASY BRIDGE TO DEMONSTRATE BACK TO THE CHARTER WHERE IT SAYS, THE CITY IS PROVIDING YOU WITH ADDITIONAL BENEFIT OR SERVICES.
THEN TO THE END, WE TALKED BRIEFLY ABOUT SHARED SERVICES.
YOU'RE GOING TO HEAR A LITTLE BIT ABOUT THAT IN WORKSHOP TOMORROW.
THERE'S AN ITEM ON OUR AGENDA FOR THE POSSIBLE DEVELOPMENT OF THE CITY OF GALVESTON MARINE SAFETY DEPARTMENT.
I'D ENCOURAGE YOU TO LISTEN FOR THAT. THANK YOU.
>> I LIKE THE WAY THIS CONVERSATION HAS EVOLVED SINCE IT FIRST CAME UP, I THINK, AFTER BERYL AND REALLY, IT ORIGINATED WAS THE IDEA THAT THE RESIDENTS ARE ABLE TO SHARE IN THE SUCCESS OF THE PORT, AND THAT'S A BIG 100,000 FOOT STATEMENT, BUT THAT'S WHERE IT ORIGINATED, I THINK.
BUT I THINK THIS CONVERSATION IS EVOLVING TO SOMETHING THAT'S PROBABLY GOING TO BE MUCH MORE USEFUL.
IT DOES HAVE TO DO WITH EDUCATION OF WHAT THE PORT BRINGS TO THE CITY FOR ONE THING.
BUT THE OTHER THING THAT SOUNDED REALLY PRACTICAL TO ME WAS COLLABORATING BETWEEN THE CITY AND THE PORT ON INFRASTRUCTURE IMPROVEMENTS AS A WAY OF DOING THAT BECAUSE FOCUSING ON THE HARBORSIDE DRIVE, THE SAFETY OF HARBORSIDE DRIVE AND THEN TO RICHARDS POINT, HOW DO WE CONNECT THE WATERFRONT WITH THE DOWNTOWN AREA, WHICH IS HARBORSIDE DRIVE, IS THE BIG GULF IN THAT.
COLLABORATING ON SOME OF THOSE INFRASTRUCTURE ISSUES, I THINK WOULD GO A LONG WAY TOWARDS DEMONSTRATING TO THE RESIDENTS THAT THIS IS WHAT YOU GET OUT OF THIS.
WE CAN HELP MITIGATE TRAFFIC ON HARBORSIDE, WE CAN MAKE IT A SAFER PLACE FOR PEDESTRIANS TO CROSS OR WALK UP AND DOWN.
PEOPLE WHO LIVE HERE DO GO TO THE WATERFRONT.
THEY DO GO TO DOWNTOWN WHERE THEY HAVE THAT OPPORTUNITY, AND THAT'S REALLY A BIG PRESSING ISSUE RIGHT NOW.
I THINK THIS IS REALLY SOMETHING THAT WE NEED TO ADDRESS.
[02:10:01]
COLLABORATING BETWEEN THE PORT AND THE CITY ON SOLVING THIS PROBLEM, WE MAY BUILD TO, LIKE DAVID SAYS, LEVERAGE SOME OF OUR CAPACITY TO DO THAT AND AT THE SAME TIME, SHOW THE RESIDENTS THAT THIS IS WHAT YOU GET WITH THE SUCCESS.>> I'M GOING TO WRAP THIS UP AND GIVE SOME SYNOPSIS HERE.
I THINK THERE'S MERIT, AND SINCE THERE'S MERIT AND LOOKING AT WHAT THE PORT, WHAT THE BENEFIT THEY BRING TO THE CITY AND VICE VERSA, WHAT THE CITY BRINGS TO THE PORT.
I THINK THERE'S MERIT TO PUT SOME FINANCIAL OBJECTIVE MEASUREMENT TO THAT.
MY SENSE IS WE'RE GOING TO BE SURPRISED HOW MUCH THE PORT BRINGS TO THE CITY AS WE LOOK AT THIS AND REALLY GET INTO THE DETAILS ON THIS, BUT I THINK IT'S GOING TO BE IMPORTANT TO LOOK AT THAT.
I AGREE WITH MARIE, ALSO, WE THINK ABOUT COMBINING SERVICES AND SO FORTH.
MEANS THAT IT'S A MORE EFFICIENT WAY AND A BETTER WAY, IN A LESS COSTLY WAY.
THAT MAY NOT BE THE SITUATION RIGHT NOW HERE AT THE CITY.
I THINK THAT WE NEED TO REALLY GET, AS SHE MENTIONED, GET OUR DUCKS IN A ROW, GET OUR HOUSE IN ORDER HERE BEFORE WE EVEN CONSIDER DOING SOMETHING LIKE THAT, AND I'M NOT SURE EVEN WHEN WE GET OUR HOUSE IN ORDER HERE, THAT IT STILL MAKES SENSE TO COMBINE THESE SERVICES.
I THINK THE PORT, ESPECIALLY WHEN IT COMES TO PROCUREMENT, FINANCIAL INVOLVEMENT AND LEGAL OVER THERE, I THINK THEY'RE DOING A GOOD JOB OF WHAT I SEE, BUT IT'S GOOD TO LOOK AT THAT AND SEE HOW WE SIT FORWARD.
I THINK THE KEY IS GOING TO BE TIMING HERE.
I THINK WE ALL AGREE NOW IS NOT THE TIME TO GET INTO ANYTHING LIKE THIS AS FAR AS MAKING ANY MAJOR CHANGES HERE AT THE PORT, BUT I DO THINK IT'S COMING UP HERE AND WE'RE GOING TO NEED TO LOOK AT THAT PROBABLY COMING UP HERE SOONER THAN LATER ON THAT.
ANY OTHER THOUGHTS, COUNCIL MEMBERS?
[3.E Discussion of the Allocation of Hotel Occupancy Tax to the Port of Galveston (V. Pierson)]
LET'S MOVE TO ITEM 3E, PLEASE.>> ITEM 3E, DISCUSSION OF THE ALLOCATION OF HOTEL OCCUPANCY TAX TO THE PORT OF GALVESTON.
>> WE SAVED THE BEST FOR LAST.
>> ACTUALLY, THIS TOPIC WILL BE PRETTY SHORT BECAUSE WE HAD MENTIONED IT TO ME PREVIOUSLY.
I THINK WE HAVE A REPORT THAT SHOWS THAT 32% OF OUR CREWS PASSENGERS SPEND A NIGHT EITHER PRE OR POST CRUISE IN A HOTEL ROOM IN GALVESTON, AND SO WHAT MY IDEA FOR PUTTING THIS ON THE AGENDA, THERE MAY BE SOME OPPORTUNITIES WHERE THE PORT COMES AND SOLICIT SOME HOT FUNDING TO HELP WITH THAT AND PROBABLY THAT BRIDGE.
THAT COULD POSSIBLY BE ONE, AND THAT WAS JUST TO OPEN UP THAT WE MAY BE COMING FORWARD WITH SOME APPLICATIONS OF HOT TAXES, THAT MAKES SENSE FOR THE CITIZENS AND FOR THE BOARD.
>> I APPRECIATE ROGER THOMAS ABOUT THAT MAYBE PUTTING THAT ON HOLD ON THE INSIDE ROAD FOR THAT BUT IDEALLY, WE SHOULD DO BOTH.
IF WE'RE PUTTING 32% OF THE HEADS AND BEDS.
I THINK THAT NUMBER IS ONLY GOING TO GET BIGGER WITH DISNEY COMING ON, ESPECIALLY, FULL-TIME.
>> I GUESS THIS WAS JUST PRELIMINARY.
>> SOME OF THE HOTEL PARTNERS QUESTIONED WHAT IT WAS, AND I DIDN'T HAVE AN ANSWER FOR HIM.
JUST BE COGNIZANT OF THEY ARE THE TAXPAYER FOR THAT MONEY, THEY COLLECT IT AND REMIT IT.
WHEN WE DISCUSS THESE THINGS, LET'S KEEP THEM IN MIND AS WELL.
I HATE TO GO BACK TO THE LEGISLATION, BUT ONE OF THE PIECES OF LEGISLATION THAT WE'RE DEALING WITH, THE CURRENT LANGUAGE, IT CLASSIFIES MISSPENT HOTEL OCCUPANCY TAXES.
THE AMOUNT OF MONEY NOT DESCRIBED BY PARAGRAPH A, WHICH IS MISSPENDING OF HOT TAX IN 351, BUT IT'S THAT WAS RECEIVED BY AN ELIGIBLE COAST OF MUNICIPALITY FROM THE MUNICIPALITIES PARK BOARD AND SPENT BY THE MUNICIPALITY DURING THE PRECEDING TAX YEAR.
WITH NO REGARD TO THE TRICKLE DOWN, THAT WOULD BE THE HOT TAX THAT'S COLLECTED PERIOD.
AS OF RIGHT NOW, AND JUST SO YOU ALL UNDERSTAND IF THESE BILLS PASS, THAT MONEY, IF WE ALLOCATE IT TO YOU ALL AND YOU SPEND IT, THAT WOULD COUNT TOWARDS OUR VOTER APPROVAL RATE. IT'S VERY [OVERLAPPING]
IN MY OPINION, READING IT, IT'S ALMOST IN PERPETUITY.
[02:15:01]
THAT DOLLAR COMES OFF OUR TAX CAP SOMEWHAT INDEFINITELY.THAT'S WHERE WE FIND OURSELVES.
>> WHICH IS WHY YOU SHOULD CALL YOUR SENATORS AND REPRESENTATIVE AND SAY, I OPPOSE SALE 2532, IF YOU HAVEN'T.
>> [OVERLAPPING] IT IS IN THE HOUSE AND IT'S A WAYS AND MEANS COMMITTEE.
>> HAS THE CHAMBER WEIGHED IN ON THAT?
>> BUT JUST SO YOU ALL UNDERSTAND.
CONFUSING THAT IT IS, BUT IF IT DOES, THERE ARE RAMIFICATIONS LONG TERM AND EVEN JUST WAR GAMING, HOW IT PLAYS OUT AND THE TWO YEAR PERIOD, IT'S UP IN THE AIR.
BUT WE DID GIVE A DIRECTIVE TO THE PARK BOARD, I REMEMBER, TO WORK MORE CLOSELY WITH THE PORT.
IF THERE'S MORE OPPORTUNITY, THERE WAS AN OPPORTUNITY MENTIONED ABOUT THE COUPLE OF A WALK OVER THE COMING STRUCTURE, SO TO SPEAK.
I THINK THAT MIGHT HAVE BEEN A MISSED OPPORTUNITY FROM THE PREVIOUS COUNCIL.
BUT AGAIN, I'D LIKE TO WORK TOGETHER, BUT AS OF RIGHT NOW, OUR HANDS ARE TIED WITH THIS PARTICULAR.
AGAIN, MARIE HAS BEEN [OVERLAPPING]
>> THIS WAS JUST VERY PRELIMINARY.
>> MARIE HAS BEEN REALLY ACTIVE AND PROBABLY THE MOST OF ALL THE COUNCIL MEMBERS ABOUT OPPOSING THIS.
IF YOU ALL HAVE THE OPPORTUNITY, PLEASE, IT'S 2532 SENATE BILL.
>> THERE'S A HOUSE BILL 2, WHICH IS 50 OR THE HOUSE BILL IS 36 IF THAT DOESN'T SOUND RIGHT.
>> WHO'S CARRYING THOSE BILLS? WHAT'S SO INTERESTING, THIS BILL IS POORLY WRITTEN.
THE CITY WAS NOT CONSULTED IN ANY WAY ON THIS, AND THIS BILL IS, IN MY OPINION, A POORLY WRITTEN BILL, AND REALLY I THINK THEY DON'T UNDERSTAND THE RAMIFICATIONS IT HAS FOR THIS CITY.
>> WHEN I PUT THIS ON THE AGENDA, I DIDN'T [LAUGHTER] [BACKGROUND]
>> BUT CHAIRMAN, I'D LIKE TO [OVERLAPPING]
>> DAVID, EXCUSE ME. LET MARIE TO REFINISH. I'M SORRY.
>> JUST SINCE IT HAS BEEN TALKED ABOUT, THE HOUSE BILL IS 5596.
YOU SHOULD ALSO CALL COOK BEN OPPOSED THAT.
BUT SO HOW MANY CRUISE PASSENGERS DO YOU BRING TO THE ISLAND TOTAL? ANYONE?
>> WE CAN ROUGHLY SAY TWO MILLION.
IT'S EASIER FOR THE MATH, IT'S ABOUT 1.9 THIS YEAR.
>> IF YOU LOOK AT THE PORTION OF TOURISM THAT THE PARK BOARD TOUTS, YOU'RE A GOOD PORTION.
>> RIGHT. I THINK THAT THIS IS SOMETHING THAT WE NEED TO LOOK AT WHERE WE CAN PARTNER.
AS LONG AS WE'RE NOT RESTRICTED BY SOMETHING IN AUSTIN THAT IS AFFECTING US.
I THINK IT'S SOMETHING WE SHOULD LOOK AT DOWN THE LINE.
>> THAT'S WHAT I WAS GOING TO SAY THAT FROM A PHILOSOPHY, IT ABSOLUTELY MAKES A LOT OF SENSE.
I THINK THAT, GET PAST THE LEGISLATURE, I THINK THAT THIS DISCUSSION IS OF INATTENDANCE.
>> BEFORE YOU LEAVE, I WANT TO SAY, AND I THINK I SPEAK FOR EVERYBODY HERE.
I WISH YOU THE BEST ON EVERYTHING ON THIS.
>> BUT I DO RUN AND TAKE YOU UP ON THAT [INAUDIBLE] [LAUGHTER] [BACKGROUND]
>> I JUST WANT TO ALSO OFFER MY SUPPORT FOR THE IDEA BECAUSE I THINK IT KIND OF FALLS RIGHT IN LINE WITH PARTICIPATING, COLLABORATING, AND INFRASTRUCTURE IMPROVEMENTS THAT BENEFIT PEOPLE WHO LIVE HERE AS WELL AS TOURISTS.
BUT I'D ALSO WANT TO TAKE THIS OPPORTUNITY TO BEGIN TO LOOK AT THE LEGAL QUESTIONS AROUND THAT, THAT WE'RE GOING TO BE BASED ON THE RESULTS OF THIS BILL OR NOT.
[02:20:01]
BUT ALSO IF THE LEGAL OPINION IS THAT THAT TYPE OF EXPENDITURE IS ALLOWABLE BY STATE LAW.>> I'D JUST LIKE TO GET SOMEBODY TO TELL ME SOME LEGAL OPINION.
>> TRUST ME, WE WANT TO DO EVERYTHING THAT'S LEGAL.
>> WHAT YOU'RE SAYING, I UNDERSTAND IT IS THAT WHOEVER YOU GIVE HOTEL TAX DOLLARS TO, IT COUNTS AGAINST YOUR CAP.
>> IT'S THE POORLY WRITTEN DEBT.
>> LET ME JUST READ IT. NO, THAT'S THE WRONG ONE.
>> WHAT IT SAYS IS THAT IF THE HOTEL OCCUPANCY TAX GOES TO THE PARK BOARD AND IF THE CITY RECEIVES ANY HOTEL OCCUPANCY TAX, IF WE SPEND IT ACCORDING TO THE STATE LAW OR NOT, IT GOES AGAINST [INAUDIBLE].
IT SAYS, MISSPENT HOTEL OCCUPANCY TAX REVENUE MEANS AN AMOUNT EQUAL TO THE SUM OF A.
THE AMOUNT OF REVENUE RECEIVED UNDER 351 LET'S JUST SAY BY GALVESTON, THAT WAS SPENT BY A MUNICIPALITY, NOT AUTHORIZED.
THAT MEANS ANYTHING NOT AUTHORIZED.
>> THE CITY IS NOT AUTHORIZED.
>> NO, WE ARE, BUT THAT'S PART A.
THAT'S MISSPENDING OF [OVERLAPPING]
>> THE SECOND PART IS THE AMOUNT OF MONEY NOT DESCRIBED BY PARAGRAPH A THAT WAS RECEIVED BY AN ELIGIBLE COAST OF MUNICIPALITY FROM THE MUNICIPALITIES PARK BOARD OF TRUSTEES AND SPENT BY THE MUNICIPALITY DURING THE PRECEDING TAX YEAR.
ANY MONEY THAT WE RECEIVED FROM THE PARK BOARD.
>> WHICH WE DID RECEIVE MONEY FROM THEM.
>> WE HAVE, AND IF THAT IS SPENT, THAT COUNTS TOWARDS OUR VOTER APPROVAL RATE.
>> EXCUSE ME, I WANT TO CLARIFY THIS.
NO MATTER IF WE SPEND THAT ACCORDING TO STATE LAW.
>> IT SAYS THE AMOUNT OF REVENUE RECEIVED.
>> IT INHIBITS THE CONVENTION CENTER TRICKLE DOWN THAT COUNTS.
>> WELL, I'M LISTENING TO THAT AS THEY'RE TARGETING THE ASSETS THAT YOU MAY HAVE IN BANK ACCOUNTS NOW, NOT SO MUCH FUTURE ACTIVITY.
>> IT SAYS THE AMOUNT OF MONEY NOT DESCRIBED BY PARAGRAPH A, WHICH WAS 351.
THAT WAS RECEIVED BY AN ELIGIBLE COAST OF GALVESTON BY THE AR PARK BOARD OF TRUSTEES AND SPENT BY THE MUNICIPALITY DURING THE PRECEDING TAX YEAR. THAT MEANS?
>> THAT IS CLASSIFIED AS MISSPENT HOTEL OCCUPANCY TAX.
>> AGAIN, I WOULD APPRECIATE [OVERLAPPING]
>> LITTLE OFF TOPIC AND THIS IS A SOMEWHAT, BUT IT'S IT'S TAX.
DOESN'T THE PORT GENERATE IDC TAX INCOME?
>> THAT'S ANOTHER OPTION THAT WE MAY WANT TO LOOK AT.
>> IT IS. I THINK WE PARTNERED ON THE BMW MAKE READY.
>> A LOT OF OUR INFRASTRUCTURE, MONEY GOES TO THE PELICAN ISLAND BRIDGE.
>> EIGHT MILLION TO THE PELICAN ISLAND BRIDGE THROUGH IDC.
>> [OVERLAPPING] THAT'S A VERY GOOD POINT.
>> I'M VERY THANKFUL MAYOR AND COUNCIL FOR LETTING US COME VISIT WITH YOU.
I LOOK FORWARD TO OUR NEXT MEETING AND TO CONTINUE THE DIALOGUE THAT WE'VE ESTABLISHED AS WE'VE WORKED TOGETHER TO MAKE GALVESTON A BETTER COMMUNITY FOR ALL OF US.
>> THANK YOU. IT'S 11:24 AM, WE HAVE GONE THROUGH ALL THE ITEMS ON OUR AGENDA.
I WANT TO THANK THE WHARVES BOARD FOR BEING HERE.
IF YOU CAN SEE, WE'VE GOT A VERY ENGAGED WHARVES BOARD.
EACH ONE OF THEM WANTING TO MAKE THINGS BETTER, NOT ONLY FOR THE POOR BUT FOR THE COMMUNITY ALSO.
>> ROGER, THANK YOU FOR BEING HERE.
>> APPRECIATE IT. WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.