[1 DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]
[00:00:04]
IT IS 9 AM AND I WILL OFFICIALLY CALL THE WORKSHOP FOR THE CITY OF GALVESTON CITY COUNCIL TO ORDER FOR THURSDAY, MARCH 26.
WE HAVE A VERY BUSY SCHEDULE THIS MORNING AS WE ALWAYS DO.
WE DO HAVE A QUORUM HERE, BUT WE HAVE A ROLL CALL.
COUNCIL MEMBER FINKLEY IS ABSENT FOR THE WORKSHOP TODAY.
COUNCILMAN FINKLEY WILL NOT BE HERE FOR WORKSHOP, BUT HE WILL BE JOINING US VIRTUALLY ON THE REGULAR MEETING THIS AFTERNOON.
I WANT TO WELCOME EVERYBODY THAT'S HERE. THANK YOU FOR BEING HERE, THOSE THAT ARE IN THE AUDIENCE. THANK YOU.
CHANGING OUR FLOW A LITTLE BIT OF THE AGENDA, AND I'M GOING TO GO THROUGH SOME HOUSEKEEPING ITEMS HERE IN JUST A SECOND,
[3 CONFLICTS OF INTEREST]
BUT ARE THERE ANY CONFLICTS OF INTEREST? I THINK I HAVE ONE, BUT I'M NOT SURE.I SIT ON THE BOARD OF THE COMMUNITY POLICE FOUNDATION, AND WE'RE ACCEPTING A DONATION FROM THEM DO I NEED IS THAT A CONFLICT OF INTEREST NO OKAY WELL THANK YOU FOR BRINGING THAT UP ALSO I WANT TO WELCOME EVERYBODY THAT MAY BE WATCHING THIS TELECAST OUT IN THE COMMUNITY AT AFAR SO GLAD TO HAVE YOU WITH US THIS MORNING I DO HAVE A CONFLICT ON ITEM 5A1.
BEFORE WE START, I WANT TO GO THROUGH SOME HOUSEKEEPING CHORES. GOOD MORNING, BRIAN. APOLOGIES, I WAS ON THE PHONE.
SOME HOUSEKEEPING CHORES WITH YOU.
[4.H Discussion of the City of Galveston's Economic Development Incentive Plan (M. Hay - 20 min)]
ITEM 4H ON THE WORKSHOP HAS BEEN PULLED.WE WILL NOT BE DISCUSSING ITEM 4H TODAY.
THAT WILL BE POSSIBLY COMING BACK TO US NEXT MONTH.
SO WE'RE WAITING TO HEAR FROM STAFF ON THAT.
ITEM 4F, THIS ITEM, COUNCIL, BRIAN HAS NOTIFIED US THAT THAT WILL BE ON THE JOINT MEETING AGENDA FOR APRIL 9TH WITH THE PARK BOARD. MARTY MILES HAS ALSO TOUCHED BASE WITH ME AND SAID THAT THEY HAVE NOTHING TO REALLY REPORT, BUT HE'LL HAVE A COMPLETE OUTLINE OF TIMELINE AND WHAT WILL BE, HOW THEY'LL ADDRESS THE DRAINAGE THERE AT THE APRIL 9TH MEETING. SO THAT ITEM REALLY, MARTY OR BRIAN REALLY HAS NO REPORT FOR US ON THIS.
THAT IS FOR AN HOUR AND WE'LL HAVE THE PORT WITH US AND LIKE TO KEEP THAT TO AN HOUR IF WE COULD EVERYBODY.
THAT'S GOING TO BE IMPORTANT BECAUSE WE DO HAVE A VERY BUSY SCHEDULE.
JANELLE, IF YOU WOULDN'T MIND WE NEED TO WHEN WE READ 4A, I'D LIKE FOR YOU TO READ 4N AND NANCY WITH THAT.
BOTH THOSE ITEMS TOGETHER, THAT IS THE PIER 19 ITEM, BECAUSE THERE MAY BE SOME QUESTIONS, AND IT WOULD BE NICE TO HAVE THE PORT WITH US TODAY TO ANSWER ANY QUESTIONS ON THAT.
WHEN WE GET BACK TO THAT AGAIN, CAN WE REDISCUSS ITEM 4 IF WE HAVE TIME AT THE END OF THE WORKSHOP? WE SURELY COULD.
I WANTED TO MAKE SURE THAT WE DISCUSSED IT, IF YOU DON'T MIND, ALEX, WHILE THEY'RE HERE.
ALSO, ITEM 4D AND 4E, JANELLE, I WANT THOSE READ TOGETHER ALSO, PLEASE.
SO WE'RE GOING TO BE DISCUSSING THOSE ALL AT THE SAME TIME.
ONE LAST ITEM ON HOUSEKEEPING, ITEM 4I, WHICH IS THE GALVESTON PROPERTY FINANCE AUTHORITY ITEM. THAT PARTICULAR ITEM, THE INDIVIDUALS INVOLVED HAVE TIME CONSTRAINTS AND I'M GOING TO SEE IF WE CAN MOVE THAT UP TO FOLLOW ITEM 4B SO THAT WE'LL HAVE TIME TO GET EVERYBODY.
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ON THAT.SAYING ALL THAT, LET'S MOVE TO ITEM 4A AND 4N, PLEASE.
[Items 4.A & 4.N]
OKAY.ITEM 4A, UPDATE AND DISCUSSION OF THE PORT OF GALVESTON'S MASTER PLAN AND PROPOSED MOBILITY STUDY.
4N, DISCUSSION ON CITY COUNCIL'S DIRECTION OF POTENTIAL PIER 19 DEVELOPMENT.
VERY GOOD. I'D LIKE TO INVITE THE TABLE.
WE HAVE OUR EXECUTIVE DIRECTOR OF THE PORT, ROGER REESE.
WE HAVE OUR CHAIRMAN OF THE WARS BOARD, JEFF PATTERSON.
FOR ANY REFERENCES TO THE PLAN.
LET'S BRING JEFF UP AND COULD WE GET UP? THERE, THERE WE GO.
HOW ARE YOU? WE'VE GOT, THE PORT WILL BE GOING OVER THEIR STATUS OF THEIR MASTER PLAN.
THEY'LL BE TALKING ABOUT THE MOBILITY STUDY.
AND WE'LL BE DISCUSSING IF YOU HAVE QUESTIONS ABOUT PIER 19.
JUST, YOU KNOW QUICK HISTORY, WE DID THIS MASTER PLAN BACK IN, THE BOARD PASSED IT IN 19, AND SO WE GOT A LITTLE AHEAD OF THE GAME, SO OUR BOARD ASKED THAT WE DO AN UPDATE, AND SO WE ARE PRESENTING TODAY AN UPDATE TO THE MASTER PLAN.
AND JUST, I GUESS, ONE THING I WILL SAY IS THERE'S A LOT OF GOOD STUFF IN HERE.
IT'S $2.4 BILLION WORTH OF INVESTMENT, SO, YOU KNOW, I MEAN, JUST TO NOT TO GET EVERYBODY EXCITED OR ANYTHING, ALL THIS HAS, EVERY PROJECT HAS TO BE PASSED BY THE BOARD.
AND, YOU KNOW, THERE'S A LOT OF PROJECTS IN HERE.
YOU KNOW, SOME OF THEM ARE CONTINUATIONS, AND SO WE CAN TRY TO POINT THOSE OUT AS WE GO.
AND WE ACTUALLY ARE GOING TO TRY TO COMBINE THE MOBILITY DISCUSSION ALSO WITH THIS.
WE'VE GOT SOME INFORMATION IN HERE ABOUT THE MOBILITY AND UPDATED ON THAT, AND SO WE CAN DISCUSS THAT AND THE TIMELINE ON THAT.
OKAY, YOU KNOW, JUST A COUPLE OF BACKGROUND, YOU KNOW, OUR MISSION IS OBVIOUSLY ECONOMIC GROWTH JOBS AND TO GENERATE AS MUCH SALES TAX REVENUES AS WE CAN FOR THE WHOLE COMMUNITY, THREE DIFFERENT BUSINESS SECTORS, CRUISE, CARGO, AND COMMERCIAL, AND WE BREAK THOSE DOWN IN THE MASTER PLAN.
YOU KNOW, THE ECONOMIC IMPACT, THESE ARE NEW NUMBERS THAT WERE JUST CAME OUT IN 24, FOR THE YEAR 24.
IT'S HARD TO GET THESE THINGS UP TO DATE, BUT THIS WAS DONE BY JOHN MARTIN AND ASSOCIATES, AND THESE ARE ALL THE ECONOMIC IMPACT NUMBERS.
AND IF YOU UNDERSTAND HOW THOSE, THEY'RE BIG NUMBERS, BUT IF YOU UNDERSTAND HOW THOSE WORK, I MEAN, IT'S A LOT OF TRICKLE DOWN AND THOSE KIND OF THINGS.
BUT THE PORT IS HAVING A BIG ECONOMIC IMPACT.
AS I MENTIONED, I JUST TALKED A LITTLE BIT ABOUT THIS.
YOU KNOW, THE 20 YEAR MASTER PLAN WAS UPDATED THIS YEAR AND PASSED. LAST MONTH AT OUR BOARD MEETING, WE HAD AN OPEN HOUSE LAST NIGHT, HAD A LOT OF INTEREST.
WE HAD ALMOST 200 PEOPLE THERE LAST NIGHT THAT WERE VERY MUCH INTERESTED IN WHAT WAS GOING ON.
LEWIS FROM BA GAVE A PRESENTATION, WENT THROUGH THE PROCEDURES AND EVERYTHING THAT HE GOES THROUGH TO DO THESE PLANS.
IT IS NOW ON THE WEBSITE, AND SO YOU CAN READ.
THERE'S A LOT OF GRAPHICS, BUT THERE'S ALSO A LOT OF TEXT THAT TALKS ABOUT HOW THIS PLAN WAS DONE AND THEN GIVES YOU BACKUP FOR THEIR PROJECTIONS, AND WE'LL GO THROUGH SOME OF THOSE TODAY.
BASED ON THE PLAN, THE MARKET ANALYSIS THAT BA DID AND JOHN MARTIN JUST CONTINUES TO POSITION.
THE PORT OF GALVESTON, YOU KNOW, IN THE NEXT 20 YEARS AS THE FOREFRONT OF THE CRUISE BUSINESS.
I MEAN, YOU LOOK AT MIAMI AND YOU LOOK AT LAUDERDALE.
MIAMI, I HEARD JUST THE OTHER DAY, IS TRYING TO CREATE MORE LAND FOR THEIR CRUISE PORT, BUT THEY HAVE ISSUES OVER THERE.
THEY'VE GOT REEFS AROUND THAT AREA.
AND SO, YOU KNOW, IT'S GOING TO BE A LONG PROCESS FOR THEM TO BE ABLE TO.
AND JUST TO GIVE YOU THE VALUE OF CRUISE, AND I DON'T HAVE TO.
TO REALLY TALK MUCH ABOUT THIS.
I THINK EVERYBODY UNDERSTANDS IT HERE. BUT OVER THERE, I MEAN, THEY'RE TALKING ABOUT TAKING BURSTS OUT OF CARGO AND MOVING THEM INTO CRUISE.
THE VALUE OF THE CRUISE BUSINESS IS SO MUCH.
SO I WAS TALKING TO LEWIS LAST NIGHT ABOUT THIS, AND HE TOLD ME THAT THEY WERE REALLY
[00:10:02]
REALLY TRYING TO MOVE FORWARD AND THEY HAVE NOWHERE ELSE TO GO. AND THE SAME THING WITH LAUDERDALE, FORT LAUDERDALE, YOU KNOW, THEY'RE LAND POOR.THE CARGO VOLUMES FROM 3 MILLION TO 6 MILLION, IS THAT OVER THE 20 YEAR PERIOD OR IS THAT WITHIN? WELL, YOU KNOW, WE'VE BEEN AT CLOSE TO 6 MILLION TONS.
YOU KNOW, THE REALITY OF IT IS, YOU KNOW, WE'RE STARTING BACK ALMOST, NOT AT ZERO, BUT, YOU KNOW, WE HAVE MINIMAL CARGO COMING IN RIGHT NOW BECAUSE WE'RE UNDER CONSTRUCTION.
AND SO, YOU KNOW, THOSE NUMBERS, I MEAN, I PERSONALLY THINK THOSE NUMBERS PROBABLY WILL BE LOW BECAUSE, YOU KNOW, JUST BASED ON THE CONVERSATIONS THAT WE'RE HAVING NOW WITH THE CARRIERS OF CARGO, I MEAN, THEY'RE SUPER EXCITED ABOUT WHAT'S HAPPENED ON THE WEST END AND ALREADY TALKING ABOUT, YOU KNOW, SO MANY SHIPS A MONTH AND GETTING US BACK TO NORMAL.
YOU KNOW, I THINK WHEN I FIRST GOT HERE, WE WERE AROUND 4 MILLION.
WE ENDED UP TOPPING OUT AT CLOSE TO 6 MILLION.
AND THEN OBVIOUSLY NOW THE RUN OF CONSTRUCTION, WE'RE REALLY DROPPED BACK BECAUSE THESE GUYS HAVE TO HAVE, YOU KNOW, THE WAY TO GET THE CARGO OUT.
I MEAN, IF YOU GO OUT DOWN THE WEST END, AND WE CAN SEE THAT IN JUST A SECOND, YOU'LL SEE THAT ONE OF THE SLIPS IS ALMOST COMPLETELY FULL. THE BERTHS ARE DONE.
WE'RE WORKING ON APRONS AND, YOU KNOW, THOSE KIND OF THINGS TO FILL THOSE TWO SLIPS.
AND THE OTHER THING THAT WILL HELP ALSO IS NOW THE GRAIN ELEVATOR IS DOWN.
I JUST WANT TO COMMENT QUESTION WHEN THE PORT IS LOOKED AT AS FAR AS FEDERAL FUNDING, IT'S THE ENTIRE CHANNEL, NOT JUST THE PORT.
SO IN CARGO, WE RIGHT NOW ARE ABOUT 38. I THINK WE'LL PROBABLY DROP SOME.
BUT, YOU KNOW, I THINK TEXAS INTERNATIONAL TERMINALS WILL HELP KEEP US UP ON THAT.
AND THEY'RE DOING MORE AND MORE AS WE RIGHT NOW, IF YOU'VE NOTICED, WE'RE BEING DREDGED.
FULLY BY THE FEDERAL FROM THE RIGHT NOW.
SO WE'RE GOING DOWN TO THE DEEPEST WE CAN GO.
AND ACTUALLY THE CHANNEL IS EXTENDED NOW.
I MEAN, IF YOU REMEMBER, WE'VE BEEN WORKING ON THIS PROJECT FOR THREE OR FOUR YEARS.
AND IT'S FINALLY HAPPENING NOW WITH THIS DREDGING THAT'S GOING ON. SO THEY'RE OUT THERE DREDGING THE WHOLE CHANNEL.
I MEAN, IN REALITY, WHAT THEY'RE DOING IS REALLY DREDGING THE CHANNEL TO 50 FEET. CLOSE TO 50 FEET.
IT'S THE DEEPEST WE'VE EVER BEEN. EVEN THOUGH WE'RE AUTHORIZED 46, YOU KNOW, WHAT THE ARMY CORPS FORTUNATELY HAS REALIZED IS THAT, YOU KNOW, IN ORDER TO KEEP IT AT 46 FEET, WE'VE GOT TO GO DEEPER.
SO THEY'RE DOING, IT USED TO BE 46 PLUS 2, BUT I'M TOLD RIGHT NOW THAT THEY'RE GETTING CLOSER TO 50 FEET.
AND THIS WILL BE THE FIRST TIME IN 20 YEARS, CORRECT? NO, WE WERE PRETTY, WELL.
WE GOT DREDGED PRETTY WELL ABOUT TWO, THREE YEARS AGO.
BUT IT DIDN'T HAVE THE EXTENSION.
AND THEN ONE OF THE OTHER THINGS THAT THIS IS ALSO DOING IS WHAT WAS ADDED TO THE EXTENSION PROJECT JUST RECENTLY, I THINK THAT WAS TWO YEARS AGO, WAS WHAT WE CALL THE WEDGE.
AND THIS WEDGE IS ON THE NORTH SIDE OF THE CHANNEL IN FRONT OF TEXAS A&M.
BECAUSE TEXAS A&M HAS A NEW SHIP, AS WE ALL KNOW, IT'S COMING IN SOON.
AND SO THEY WERE ABLE TO GET THAT DREDGING DONE UNDER THE SAME CONTRACT THAT WE DID FOR THE EXTENSION.
IT HELPS THEM OUT AND GIVES THEM SOME DEPTH.
WE KIND OF BREAK THIS THING DOWN THIS WAY.
WE ALWAYS HAVE THE FOUR DIFFERENT COMPONENTS, AND WE'LL GO THROUGH THOSE HERE IN A SECOND.
ONE OF THE THINGS I THINK, THIS IS WHERE I TALKED A LITTLE BIT ABOUT THE MOBILITY PROJECTS AND STUFF, AND SO I WAS GOING TO LET JEFF EXPLAIN THIS.
I MEAN, IT LOOKS A LITTLE STRANGE, BUT, YOU KNOW, THERE IS A MEANS TO THE END HERE.
AND IT GIVES YOU, BECAUSE ONE OF THE THINGS WE WERE VERY CONCERNED ABOUT IS, YOU KNOW, WE JUST DID A SAFE STREETS PROGRAM. WE RECEIVED MONEY FROM HGAC FOR PROJECTS, AND THERE'S SOME OVERLAP.
THEN WE GOT SOME MONEY FROM THE STATE FOR ACTUALLY TO IMPLEMENT.
SAFE STREETS PROGRAM, THAT CAME OUT AND IT SAID WE NEEDED ABOUT $10 MILLION WORTH OF WORK ON HARBORSIDE DRIVE, MOSTLY INTERSECTION AND TRAFFIC LIGHT WORK.
BUT RIGHT, WHAT'S HAPPENED IS THE STATE OF TEXAS SAW THAT PLAN AND THEN BASICALLY SAID WE'VE GOT SOME MONEY, HERE'S $2.8 MILLION TO DO THAT.
SO JEFF, IF YOU WANT TO JUST KIND OF TALK BRIEFLY ABOUT THIS, AND THIS WILL BE KIND OF AN UPDATE ON THE MOBILITY PLAN BECAUSE WE'RE IN THE MIDDLE OF IT.
WE GOT, I'LL JUST LET YOU EXPLAIN WHERE WE ARE, JEFF.
YEAH, YEAH, WHAT'S THE PROBLEM? JEFF, COULD YOU IDENTIFY YOUR POSITION AT THE BOARD FOR THIS PUBLIC? JEFFREY THOMAS, CHIEF ENGINEER AT PORT YELTSIN.
HE'S THE REAL JEFF ENGINEER AT THE BOARD.
[00:15:01]
YES, COUNCIL, THE SLIDE THAT YOU HAVE UP ON THE SCREEN IS BASICALLY, IT'S JUST A SNAPSHOT TRYING TO REALLY, ONE, HELP ORGANIZE AS WE MOVE THROUGH THESE PROJECTS, AND ALSO, TWO, HELP COMMUNICATE KIND OF THE ITEMS WE'RE WORKING ON AT THE PORT AS FAR AS FUTURE ENGINEERING STUDIES AND PAST ENGINEERING STUDIES WITH RESPECT TO THE COULD YOU SPEAK OF JUST A LITTLE? YEAH, THE PORT'S EFFECTIVE AREA. AND WHAT YOU SEE THE ONE THAT WE'VE COMPLETED SO FAR, ROGER MENTIONED SAFE STREETS, IT'S A YELLOW LINE ON HARBORSIDE DRIVE ALIGNMENT FROM 51ST STREET DOWN TO 14TH STREET.THAT'S THE $10 MILLION COMPREHENSIVE SAFETY ACTION PLAN THAT WE COMPLETED ABOUT A YEAR AGO AND RECEIVED SOME FUNDING TO IMPLEMENT.
BUT EVERYTHING ELSE ON THE SCREEN IS ONGOING.
WE HAVEN'T COMPLETED ANY WORK, BUT WE'RE EITHER IN THE RFQ STAGE OR WILL BE IN THE RFQ STAGE LATER THIS YEAR.
THE TOP TWO LINES ON THE THE LEGEND ARE MONEY THAT WE RECEIVED FROM HGAC TO STUDY ONE IN ORANGE, A DIRECT CONNECT BETWEEN I 45 AND HARBORSIDE DRIVE.
KIND OF A CONJOINING BUT SEPARATE PROJECT TO THAT IS IN BLUE, AND THAT'S STUDYING PORT ACCESS.
RIGHT NOW, THE TWO WAYS YOU CAN GET TO THE PORT'S CARGO SECTOR ARE VIA 37TH STREET OR THE OLD PORT INDUSTRIAL UNDERPASS UNDER 51ST STREET, AND BOTH HAVE THEIR DRAWBACKS.
AND SO THAT PROJECT IS REALLY LOOKING AT WHAT'S THE BEST PROJECT IN THE FUTURE THAT WE COULD LOOK AT ACCOMPLISHING TO IMPROVE ACCESS INTO THE WEST END OF THE PORT.
THE RED PROJECT IS THE MOBILITY STUDY.
THAT PROJECT IS LOOKING AT PORT DOWNTOWN MOBILITY IMPROVEMENTS THAT CAN BE MADE TO HELP KEEP THE CENTRAL BUSINESS DISTRICT ACTIVE, KEEP PEOPLE FLOWING TO IT SO ECONOMIC DEVELOPMENT CONTINUES TO HAPPEN.
THE ADDITIONAL CRUISE TERMINALS ADDS ADDITIONAL TRAFFIC TO THE ROAD, AND THEN WE HAVE THE NEIGHBORHOODS JOINING THE CENTRAL BUSINESS DISTRICT.
AND SO IT'S KIND OF TAKING A LOOK AT THOSE THREE MAIN ITEMS AND TRYING TO FIND THE BEST WAY TO BALANCE THE INTERESTS OF ALL OF THOSE INTERESTS TO FIND WAYS TO MITIGATE.
MOVE FORWARD WITH PROJECTS IN THE FUTURE.
LET'S TALK JUST A SECOND ON THAT, JEFF, ABOUT WHERE THAT IS.
YOU KNOW, WE'VE ALREADY DONE THE RFQ, AND WE RECEIVED RESPONSES.
AND, YOU KNOW, SO, JEFF, DO YOU JUST WANT TO TALK A LITTLE BIT ABOUT THAT PROCESS, HOW WE SEE THAT PROCESS TODAY? YEAH, SO THIS STARTED BACK WITH THE JOINT REAL ESTATE COMMITTEE THAT YOU ALL ARE AWARE OF.
AND SO THE REAL ESTATE COMMITTEE TASKED PORT STAFF WITH DEVELOPING AN RFQ BASED UPON A SCOPE OF WORK THAT WAS KIND OF DEVELOPED IN HOUSE WITH THE REAL ESTATE COMMITTEE.
WE POSTED THAT RFQ ABOUT A MONTH AGO, AND WE RECEIVED QUALIFICATIONS BACK ON THE 17TH OF THIS MONTH, LAST TUESDAY.
AND WE HAVE OUR EVALUATION COMMITTEE CURRENTLY EVALUATING THOSE QUALIFICATION PACKAGES.
WE RECEIVED SEVEN PACKAGES, SO A LOT OF INTEREST IN WHAT WE'RE DOING DOWN THERE.
AND THEY'RE VERY, YEAH, GOOD COMPANIES.
WE RECEIVED PACKAGES FROM A LOT OF GOOD COMPANIES.
SO THE EVALUATION COMMITTEE IS FIVE MEMBERS.
THERE'S FOUR PORT STAFF AND ONE CITY STAFF ON THAT.
SO WE ARE RIGHT NOW WRAPPING UP THE EVALUATIONS.
WE HAVE TO, BY TEXAS STATE LAW, YOU KNOW, EVALUATE AND QUALIFICATION ORDER BY THE HIGHEST QUALIFIED DOWN TO THE LOWEST AND SO WE'RE TRYING TO GET OUR RANK ORDER AND WE'LL BEGIN NEGOTIATING A SCOPE OF WORK WE'LL THEN BRING THAT SCOPE WORK AND FEEDBACK TO THE REAL ESTATE COMMITTEE FOR CONSIDERATION AND THEN WE'LL TAKE IT I GUESS ON TO APPROVAL AT THE RESPECTIVE BODY AFTER YOU'RE SAYING APPROVAL OF THE SELECTION, THE RECOMMENDED SELECTION, YOU GO BACK TO THE REAL ESTATE COMMITTEE, AND THEN THE REAL ESTATE COMMITTEE IS LIKE, OKAY, AND THEN YOU GO BACK AND NEGOTIATE CONTRACT TERMS? SO WE WERE, RIGHT NOW OUR PLAN IS TO UTILIZE THE PROPOSED TERMS OR THE PROPOSED SCOPE OF WORK THAT THE REAL ESTATE COMMITTEE HAD DEVELOPED, DISCUSS THAT WITH THE HIGHEST RESPONDENT, HIGHEST QUALIFIED RESPONDENT.
GET A FEE THAT WE COULD LIVE WITH, BRING THAT SCOPE AND FEE BACK TO THE REAL ESTATE COMMITTEE FOR CONSIDERATION.
OKAY, SO THE COMMITTEE IS GOING TO MAKE THE SELECTION, NEGOTIATE, AND THEN BRING THAT BACK TO THE REAL ESTATE COMMITTEE.
AND THEN WHAT'S YOUR NAME BY SELECTION? THE SELECTION OF THE ONE OUT OF SEVEN RESPONDENTS, THIS COMMITTEE, THIS COMMITTEE WOULD SELECT WHO THEY THINK IS THE
[00:20:01]
MOST RESPONSIBLE.RESPONSIVE FIRM AND THEN NEGOTIATE WITH THEM, NEGOTIATE PRICE AND TERMS, BECAUSE THIS IS JUST AN RFQ.
IT DOESN'T HAVE ANYTHING TO DO WITH MONEY UNTIL YOU SIT DOWN WITH THEM.
MY QUESTION IS, DOES THE REAL ESTATE COMMITTEE ACTUALLY BE IN THE SELECTION PROCESS OF THOSE WHO HAVE PRESENTED THEIR RFQS? SO THE REAL ESTATE COMMITTEE, THERE'S TWO COMMITTEES.
THE REAL ESTATE COMMITTEE, WHICH IS A BODY OF THESE MEMBERS, AND THEN THERE'S THE SELECTION COMMITTEE, WHICH IS A BODY OF THE STAFF.
THE SELECTION COMMITTEE WILL, A RANK ORDERING, ONCE THEY HAVE THE RANK, WILL NEGOTIATE WITH THE HIGH, BECAUSE WE CAN ONLY TALK WITH ONE AT A TIME IN THE PROCESS, WILL NEGOTIATE WHAT WE FEEL LIKE IS ACCEPTABLE BASED UPON THE DIRECTION GIVEN BY THE REAL ESTATE COMMITTEE ON THE SCOPE OF WORK THAT JOHN WOULD LIKE TO SEE, A FEE THAT WE CAN MOVE FORWARD WITH.
WE'LL BRING THAT FEE AND SCOPE BACK TO THE REAL ESTATE COMMITTEE FOR, I GUESS, CONCURRENCE AND A FORWARDED RECOMMENDATION ONTO THE GOVERNMENTAL BODIES THAT WOULD APPROVE THE YOU KNOW SO THE REAL ESTATE COMMITTEE WON'T BE NEGOTIATING WILL BE ROGER AND STAFF THAT WILL BE NEGOTIATING IT RIGHT CORRECT AND OBVIOUSLY THE THE INPUT WOULD COME THEN AT THAT THAT MEETING IF THERE WAS SOMETHING THAT WE MAYBE WENT IN THE WRONG DIRECTION BASED UPON WHAT WE I JUST THOUGHT IN ROB WINKIE WILL BE INVOLVED YEAH I JUST DIDN'T JEFF IS REALLY GOOD ABOUT INCLUDING ROB AND EVERYTHING.
I JUST HEARD THE REAL ESTATE COMMITTEE WAS GOING TO NEGOTIATE.
NO, NO, THEY'RE JUST GETTING THE FIRST CHECK BEFORE IT GOES ON FOR FULL APPROVAL.
IT'S REALLY THE PROCESS WE'VE BEEN DOING.
I WANT TO BRING UP THE TOPIC, SINCE WE'RE INTO THIS RIGHT NOW, THE CITY'S INVOLVEMENT POSSIBLY WITH THIS STUDY FROM A FINANCIAL STANDPOINT.
SO BECAUSE A GOOD PORTION OF THIS IS INVOLVED WITH PARKING DOWNTOWN ISSUES THAT ARE REALLY, IT HAS A BEARING ON THE PORT'S ACTIVITIES, BUT IT'S ALSO RELATED TO THE CITY.
THE REAL ESTATE COMMITTEE, AND I KNOW ROGER AND STAFF AND BRIAN PROBABLY WILL NEED TO GET TOGETHER AND BRING RECOMMENDATIONS BACK TO THE BOARD, THE WARS BOARD, AND THE COUNCIL ON PARTICIPATING FINANCIALLY.
I'D LIKE TO GET COMMENTS ON THAT.
WELL, ONE COMMENT I'LL MAKE, NOT ON THE MONEY, BUT ANOTHER COMMENT I'LL MAKE IS GET YOUR HAND OUT OF MY POCKET WELL, YOU KNOW, ONE OF THE THINGS WE WANT TO DO IS, YOU KNOW, IS ALMOST LOOK AT THIS IN TWO PHASES, RIGHT? BECAUSE THE MOBILITY IS ONE THING, AND THEN THE PARKING STUDY IS ANOTHER.
SO WE ARE GOING TO HAVE THOSE CONVERSATIONS AND I THINK THERE IS A WAY THAT THAT CAN BE ACTUALLY DONE IN PHASE 1, PHASE 2.
WELL, NOT ONLY THAT, BUT WHAT WILL DRIVE PHASE 2 IS WHAT YOU ACTUALLY DO IN PHASE 1. RIGHT.
BECAUSE DEPENDING ON HOW THE PORT MANAGES THEIR TRAFFIC FLOWS AND THEIR PARKING AND EVERYTHING ELSE ON THEIR PROPERTY WILL REALLY CHANGE HOW THINGS OCCUR ON OUR SIDE.
THAT WOULD BE CLARIFIED IN YOUR NEGOTIATIONS.
YEAH, BUT THAT'LL BE COMING BACK TO COUNCIL AT SOME POINT IN TIME IF WE MOVE IN THAT DIRECTION WITH PHASES FOR FUNDING.
THE QUESTION I HAVE FOR JEFF IS, AS YOU GO THROUGH THESE EVALUATIONS, KNOWING THAT THERE'S PROBABLY GOING TO BE SOME DIFFERENCE IN WHAT YOU'RE DOING BETWEEN PHASE 1 AND PHASE 2, SOMETIMES WE'LL SPLIT THAT BETWEEN FIRMS IF ANOTHER FIRM HAS BETTER EXPERTISE OR NOT.
I KNOW YOU'LL KEEP YOUR MIND OPEN TO THAT AS WELL.
IT'S SOMETIMES EASIER TO HAVE ONE FIRM DO IT ALL BECAUSE THERE'S THAT CONNECTED KNOWLEDGE.
BUT THEN SOMETIMES THERE'S A FIRM THAT JUST KNOCKS IT OUT OF THE PARK WITH TRAFFIC FLOW BUT DOESN'T HAVE A BIG PARKING HISTORY AND SUCH.
YEAH, I THINK I'D SAY THE OTHER PIECE IS IF YOU LOOK AT ALL THE COLORS AND LINES, THERE'S A LOT OF ONGOING WORK.
AND SO TO ME, GETTING ONE FIRM INVOLVED AND KIND OF EDUCATING THEM ON ALL THOSE PIECES.
YOU MAY HAVE A MASTER FIRM AND A SUB MASTER FIRM TOO.
YOU JUST TAKE ONE LOOK AT THAT GRAPHIC THERE AND YOU SEE.
THIS IS WHERE OUR CONCERN IS WE'RE RUNNING THREE OR FOUR THINGS SIMULTANEOUSLY AND SO WE WANT TO MAKE SURE THAT WE DON'T OVERLAP AND THAT YOU KNOW EACH EACH ONE OF THOSE SECTIONS GETS WHAT'S BEST FOR THAT SECTION BUT HAVING THE KNOWLEDGE OF HOW AN INTERNET REACTS WITH EVERYTHING ELSE.
IT MAY BE GREAT FOR THAT SECTION BUT REALLY SUCKS FOR THE OTHERS.
YOU GOTTA MAKE SURE YOU DO IT ALL THE WAY YOU CAN COORDINATE THE WORK OF ALL OF THESE PLANS.
TO MAKE SURE THAT THEY'RE NOT DUPLICATING EACH OTHER OR THEY'RE NOT CONTRADICTING EACH OTHER.
WE DON'T PAY FOR THE SAME THING TWICE.
SOME DAYS, LIKE SAFE STREETS, THERE ARE DESIGNS ON EACH OF THOSE INTERSECTIONS OF WHAT THEY'RE GOING TO DO.
YOU DON'T WANT TO REDO ALL THAT OR NOT BE AWARE OF WHAT'S ALREADY BEING PLANNED.
AS JEFF SAID, WE HAVE 2.8 MILLION. AND FOR THAT,
[00:25:01]
AS A RESPONSE TO THE SAFE STREET, IT'S NOT THE ENTIRE, THE WHOLE PACKAGE CAME BACK AT $10 MILLION, BUT THE STATE GAVE US $2.8 MILLION, SO WE'LL ALSO PRIORITIZE THAT.THESE STUDIES ARE GOING TO ENABLE YOU TO GET GRANTS TO ACTUALLY IMPLEMENT WHAT THEY RECOMMEND.
WE DID GO BACK THIS TIME AND DID APPLY FOR THE SAFE STREETS.
BUT AT THE SAME TIME, YOU KNOW, ALMOST THE SAME TIME, THE STATE STEPPED FORWARD AND SAID, WE'VE GOT $2.8 MILLION THAT WE'RE WILLING TO PUT IN.
NO MATCH IN THAT EITHER, I THINK, RIGHT? I MEAN, IT'S HARD BECAUSE SOME OF THESE HAVE MATCHES AND SOME OF THEM DON'T.
NO, I BELIEVE THERE'S A MATCH WITH THAT.
IS IT $2.8 MILLION FOR CARRYING OUT CONSTRUCTION OR IS THAT ANOTHER STUDY? NO, THAT'S CATEGORY 9 MONEY FOR DESIGN AND IMPLEMENTATION.
PEDESTRIAN SAFETY AREA INSTRUCTION AFTER THAT SO I JUST WANTED TO REALLY KIND OF MAKE SURE THAT WE THAT EVERYBODY UNDERSTOOD WHAT'S HAPPENING BECAUSE THERE IS SOME OVERLAP AND AND WE USE THIS WORD MOBILITY AND MOBILITY MEANS A LOT OF THINGS AND YOU CAN SEE WHAT WHAT IT IS I MEAN AND AND THAT'S WHY I RETITLED THIS SLIDE IS IT'S MOBILITY MOBILITY MOBILITY RIGHT PROJECTS IN THE LAST THREE WE CAN JUST GO THROUGH REAL QUICK.
IN GREEN WE'VE GOT A RAISE GRANT THAT THE PORT RECEIVED.
THIS IS AN INTERMODAL MOBILITY PLAN, WHICH WAS REALLY LOOKING AT A COUPLE OF PHASES.
ONE IS HOW CARGO MOVES WITHIN THE PORT, OUTSIDE THE PORT, BUT ALSO THEN LOOKING AT THE OTHER MODES OF TRANSPORTATION, LIKE HEAD BIKE AND JUST POVS ON THAT WEST END OF THE PORT, BECAUSE WE KNOW THAT THERE'S A COUPLE OF FACTORS HERE.
ONE IS JUST OUR WEST END CARGO YARD IS JUST CHANGING, AND SO THIS IS AN OPPORTUNITY FOR US TO OPTIMIZE IT AND GET THE MOST BANG FOR OUR BUCK OUT OF EVERY ACRE WE'VE GOT.
TWO, WE KNOW THAT THERE ARE PEOPLE THAT COMMUTE TO THE WEST END OF THE PORT ON BIKE, AND THERE'S NOT REALLY SAFE WAYS TO DO THAT.
IN ADDITION TO THAT, THERE'S A BIKE PED PATH PLANNED FOR THE PELICAN ISLAND BRIDGE AND ALL THAT HAS TO KIND OF CONNECT BACK TO EACH OTHER.
EXCEPT IT STILL CONNECTS TO THAT.
SO THOSE ARE THE THINGS WE'LL BE LOOKING AT IN THE GREEN AS WELL AS HOW WE CAN IMPROVE.
RIGHT NOW THERE'S A CARGO YARD SOUTH OF HARBORSIDE.
HOW CAN WE CONNECT THAT CARGO YARD TO THE PORT BETTER, MAYBE VIA A FUTURE OVERPASS OR SOMETHING LIKE THAT IN THAT AREA? AND THAT'S WHAT WE'LL BE STUDYING WITH.
THE HGAC MONEY, AND WE'VE COMBINED THAT, BOTH PROJECTS.
YES, THE ORANGE AND THE BLUE WILL BE DONE BY THE SAME CONSULTANT.
THOSE ONES HAVE TO BE DONE BY THE SAME CONSULTANT.
TAKE THE PELICAN ISLAND BRIDGE, THE CURRENT ONE.
THE NAVIGATION DISTRICT IS GOING TO DEMO IT, RIGHT? YES.
IF WE'RE TALKING ABOUT A LAND BRIDGE IF WE CONVERTED THAT, MAYBE THEY COULD CRUNCH THE NUMBERS.
WE'RE ABANDONING THE EASEMENT TO A&M OR WHATEVER.
I DON'T KNOW WHAT'S GOING TO HAPPEN IF THE LAND BRIDGE IS THE IDEA OR HOWEVER THAT MOVES FORWARD. THAT WOULD BE A GREAT OPPORTUNITY TO HAVE A PEDESTRIAN, A VEHICLE, A BICYCLE LANE ON THE OLD BRIDGE.
IT SHOULDN'T TAKE MUCH OF THE ASPHALT OR CONCRETE TO MAKE IT HAPPEN.
YEAH, I MEAN AND IT SAVES THE MONEY FROM THE NAV DISTRICT TO DEMO IT.
JUST SO YOU COULD TAKE IT TO THE NUMBER CRUNCHERS AND ENGINEERS.
YEAH, THE NEW BRIDGE INCLUDES ALL THAT.
OH, I BET IT WOULD TAKE AWAY FROM THE COST OF THAT.
I THINK IT'S REQUIRED WHETHER WE HAVE ANOTHER ONE RIGHT NEXT TO IT OR NOT BECAUSE IT'S A FEDERAL.
BUT I'LL TELL YOU, IT'S A LOT EASIER TO PEDAL ACROSS THE CURRENT BRIDGE THAN THE 75 FOOT HYBRID.
I WANT TO SHAKE THAT KID'S HAND. WHEN YOU HAVE FEDERAL HIGHWAY FUNDS, IT IS REQUIRED TO HAVE A BIKE LANE AND A PEOPLE LANE.
I MEAN, BUT, YOU KNOW, IT'S JUST AN IDEA.
IT COULD CHECK A BOX SOMEWHERE ALONG THE WAY.
OR YOU COULD DO LIKE WHAT SAN PADRE DID, AND THEY PUT A RESTAURANT.
JUST KEPT HALF OF IT AND PUT A RESTAURANT ON IT.
I ACTUALLY SOLD IT FOR MONEY THAT COULD BE USED.
PUT IT RIGHT IN THE MIDDLE AND THE RESTAURANT COULD RAISE ITSELF.
THAT WAS OUR DISCUSSION ABOUT THE MOBILITY PLAN.
WE HAVE THE PLAN TO MOVE FORWARD WITH THAT AND HOW THAT'S GOING TO MOVE FORWARD.
AND SO HERE'S JUST THE OPPORTUNITIES THAT WE SEE IS TO CONTINUE TO IMPROVE THE TRAFFIC FLOW AND OBVIOUSLY CONTINUE TO EXPAND THE CARGO.
AND NOW WE'RE STARTING TO PUT A LOT MORE FOCUS ON PELICAN ISLAND.
[00:30:01]
IN TIME WE'LL BE ABLE TO GET THERE.SO THERE ARE A LOT OF THINGS THAT WE'RE WORKING ON.
LNG IS ONE AREA THAT WE'RE FOCUSING ON SOME SMALL LNG THERE BECAUSE WE NEED IT FOR OUR BUSINESS.
WE NEED IT FOR THE CARGO BUSINESS.
WE NEED IT FOR THE CRUISE BUSINESS.
AND SO WE'RE LOOKING AT ALSO THAT AND THE BRIDGE WE TALKED ABOUT. I DON'T WANT TO BELABOR THAT.
THAT'S NOT WHAT WE'RE HERE TO TALK ABOUT.
BUT JUST TO UPDATE EVERYBODY, I THINK YOU KNOW THAT WE HAVE WE HAVE SENT IN A LETTER TO THE ASSISTANT SECRETARY FOR THE ARMY TO GET PERMISSION TO DO A FEASIBILITY STUDY ON WHETHER OR NOT WE CAN DO A LAND BRIDGE OR NOT.
AND SO, YOU KNOW, THAT'S ALL I DID.
AND WE'VE BEEN VERY CAREFUL TO MAKE SURE THAT WE'RE NOT STOPPING WHAT'S GOING ON NOW.
JUST A COUPLE OF PICTURES THERE.
YOU CAN SEE UP IN THE CORNER THERE, YOU'RE SEEING THAT SLIT BEING FILLED.
IT'S A LITTLE BIT OLDER PICTURE.
I THINK WE'RE PROBABLY MORE THAN HALFWAY DONE ON THAT.
SO, YOU KNOW, THE CAPITAL PROJECTS, YOU KNOW, WE HAVE THE BERTHS.
WE HAVE NEW BERTHS ALL THE WAY ACROSS THE TWO SLIPS.
AND AS WAS DONE THROUGH FEMA AND TXDOT, THOSE PROJECTS ARE CLOSED OFF NOW.
AND SO WE'RE FILLING THOSE SLIPS AND WORKING ON THE BERTHS THEMSELVES TO GET TO WHERE WE WANT TO BE ON THE RIGHT SIDE THERE.
THE CARGO FORECAST, I MEAN, YOU KNOW, IT'S HARD TO FORECAST.
CARGO WHEN YOU'RE UNDER CONSTRUCTION.
I WOULD JUST TELL YOU THE BEST WAY TO GAUGE THIS IS THE INTEREST THAT WE'RE SEEING FROM CARRIERS THAT ARE GOING TO OTHER PORTS IN THE TEXAS AREA THAT WOULD RATHER COME TO GALVESTON.
AND SO WE'RE HAVING THOSE MEETINGS, AND I WOULD SAY LNG IS PART OF THOSE CONVERSATIONS THAT IF WE HAD LNG BUNKERING FACILITIES HERE.
WE WOULD SEE A BIGGER INCREASE IN THE CARGO BUSINESS BECAUSE THEY'RE ALL INTERESTED IN RUNNING LNG.
AND SO WE'RE HAVING THOSE MEETINGS ALL THE TIME, AND THESE ARE EXISTING CARRIERS THAT HAVE SAID, WE WANT TO COME BACK TO GALVESTON.
AND SO, YOU KNOW, I THINK THOSE $6 MILLION, THOSE 6 MILLION TON NUMBERS ARE LIGHT, JUST BASED ON THE CONVERSATION, BUT WE'RE NOT PROJECTING THAT.
SO THESE ARE JUST SOME OF THE COMMODITIES AND STUFF THAT WE'RE LOOKING AT FOR CARGO.
YOU KNOW, HERE IS JUST KIND OF A, GIVES YOU A PICTURE OF THE MID PORT SECTION TAKING INTO ACCOUNT, YOU KNOW, PELICAN ISLAND POTENTIAL DEVELOPMENT IN THE MID PORT.
AND, YOU KNOW, IT'S SHOWING THE LOCATION OF A POTENTIAL TURNING BASIN, I GUESS, WHICH IS ACTUALLY THERE, BUT IT'S NOT THAT WIDE.
AND THAT'S SOMETHING VERY IMPORTANT THAT YOU HAVE TO THINK ABOUT IS TURNING BASIN.
YOU CAN SEE WE HAVE IT POTENTIALLY FOR A 2,500 FOOT BERTH ON OUR PROPERTY ON PELICAN ISLAND.
AND, YOU KNOW, THAT WE DID PUT IN A COMMUNITY PROJECT WITH RANDY WEBER TO START STUDY WORK ON WHAT IT WOULD TAKE FOR US TO.
TO PUT A BIRTH IN THERE, BECAUSE THAT'S NEVER BEEN DREDGED, VERY EXPENSIVE TO GET INTO OPERATION.
WE'RE STARTING TO WORK THROUGH THAT, AND THAT WILL LEAD TO THE PERMITTING PROCESS ON A BIRTH OVER THERE.
AND THAT PARTICULAR ITEM IS ON OUR AGENDA FOR A LETTER OF SUPPORT FOR THE BOARD ON THAT.
WHEN YOU SAY BIRTH, YOU MEAN DREDGE? WELL, I MEAN, YOU'VE GOT TO DREDGE TO GET TO THE BERTH, BUT I'M TALKING ABOUT THE SAME THING WE DID ON THE WEST END.
THAT WOULD BE BUILD NEW WALLS, YEAH, AND BEGIN TO GET THAT DONE.
AND I MET WITH DAVEY JUST RECENTLY, AND THE THOUGHT OF OTHER BUSINESSES COMING IN AS SUPPORT TO THE SHIPBUILDING IS REAL.
AND SO, YOU KNOW, THAT COULD BE A GOOD POTENTIAL USE FOR SOME OF THAT LAND OVER THERE.
HAVING ONGOING CONVERSATIONS, AND I HAVEN'T GOTTEN IN THE WAY.
I HEARD A RUMOR THE OTHER DAY I WAS IN THE WAY OF STOPPING YOUR LAND PURCHASE, AND BELIEVE ME, WE ALL NEED THAT.
SO THAT'S THE CONVERSATION I'M HAVING.
THE CONVERSATION IS WHATEVER HAPPENS, WE NEED SUPPORT SERVICES.
WE NEED WATER TREATMENT OVER THERE AND ALL THAT.
SO, I MEAN, IT DOESN'T DO US ANY GOOD TO NOT HAVE THAT.
IT DOESN'T DO ANYBODY ANY GOOD ON PELICAN ISLAND.
SO I JUST WANT TO KIND OF CLEAR THAT UP BECAUSE MAYBE THERE'S A LAG IN MAYBE IN RESPONSES BECAUSE THE PORT OF HOUSTON HAS A PLAN.
AND SO, YOU KNOW, THAT'S THE WHOLE REASON THAT MAYBE IT'S NOTHING HAPPENING ON IT RIGHT NOW.
BUT, YOU KNOW, EVERYBODY IS IN AGREEMENT THAT WE HAVE TO HAVE THOSE SERVICES.
[00:35:05]
THEN HERE'S THE TALKING OF THE THINGS THAT WE SEE THAT WE'RE KIND OF SHORT ON IN TERMS OF ALMOST A SWAT ANALYSIS OF WHERE OUR WEAKNESSES ARE ON GALVESTON ISLAND AND PELICAN ISLAND FROM A CARGO STANDPOINT.AS YOU HAVE SEEN, WE HAVE TAKEN ALMOST 100% OF OUR RESERVES INTERNALLY, CASH FLOW RESERVES, TO FINISH THESE PROJECTS.
AND I'LL JUST SAY, IF YOU WANT, I MEAN, WE'LL LEAVE THIS PRESENTATION WITH JANELLE, AND SHE CAN MAKE SOME DECISIONS.
SHE'S ALREADY SENT IT TO EACH COUNCIL MEMBER.
SHE'S ALREADY SENT IT TO EACH COUNCIL MEMBER.
SO YOU'LL HAVE IT, AND YOU CAN LOOK BACK ON IT, AND WE CAN HAVE A DISCUSSION FURTHER ABOUT IT, YOU KNOW, ONE ON ONE, OR COME BACK OVER HERE AGAIN.
I DON'T HAVE TO REALLY SAY THIS, BUT I MEAN, THE CRUISE BUSINESS IS BOOMING.
YOU KNOW, WE'RE TARGETED, YOU KNOW, BECAUSE OF SHORTCOMINGS THAT ARE OVER IN FLORIDA.
PORT CANAVERAL, WHERE I CAME FROM, YOU KNOW, HAS ONE MORE BERTH THAT THEY CAN BUILD.
AND SO WE'RE NEXT, AND IT'S HAPPENING RIGHT NOW.
WE'RE MEETING WITH SPENDING THE WEEKEND THIS WEEKEND WITH NORWEGIAN.
WE'LL BE TALKING ABOUT FUTURE, WHAT'S NORWEGIAN'S FUTURE HERE, AND TWO OTHER CRUISE LINES THAT WE'RE HAVING CONVERSATIONS WITH ABOUT ACTUAL PROJECTIONS.
SO ACTUALLY MOVING FORWARD, AND I THINK WE'LL MOVE INTO THE NUMBER THREE POSITION IN THE COUNTRY BEFORE TOO LONG.
ARE ALL GOING OUT OF HERE FULL.
I MEAN, IT'S 96% OCCUPIED, AND I THINK THAT'S WHAT CARNIVAL CAME BACK WITH.
AND SO WE'RE PUTTING THE PEOPLE ON THE SHIPS, AND THEY'RE JUST REALLY HAPPY.
AND AS WE GET CLOSER TO PUTTING MORE AND MORE OF OUR, MOVING MORE AND MORE OF OUR PARKING CLOSER TO THE TERMINALS, THEN THAT HELPS OUR REVENUE CASE ALSO.
THIS IS JUST A HISTORICAL GRAPH AND YOU GUYS CAN GO BACK AND LOOK AT THAT IF YOU'RE INTERESTED.
IT TELLS ABOUT THE VOLUMES OF SHIPS AND PASSENGERS AND THOSE KIND OF THINGS THAT WE'VE HAD SINCE 2012. AND WE ACTUALLY STARTED IN 2010 OR 2011 WITH CARNIVAL.
THE THING ABOUT THE PORT IS, AND I LOVE THIS, MAYBE SOME PEOPLE DON'T, BUT I LOVE IT.
IS ALMOST ALL OF OUR CHARTS GO LIKE THIS.
AND THAT'S A GOOD THING WHEN THEY'RE GOING UP.
WHEN THEY START GOING DOWN, THEN YOU HAVE PROBLEMS. BUT MOST ALL OF OUR CHARTS, WE'RE TALKING ABOUT CARGO AND CRUISE AND REVENUES, AND EVERYTHING'S ON UPWARD TRENDS.
SO I JUST WANTED TO COMMENT ON THE FACT THAT THE SALES TAX DOLLARS ARE WAY UP IN JANUARY. AND PEOPLE WERE LIKE, WHAT'S THAT ABOUT? AND I CAN'T HELP BUT THINK THAT MSC IS RESPONSIBLE BECAUSE THE AMOUNT OF MONEY THEY PUT INTO ADVERTISING, THE FACT THAT THEY ARE SAILING OUT OF GALVESTON NOW.
AND WHEN YOU DID THE STUDY OR THE STUDY WAS DONE FOR YOU ABOUT THE PERCENTAGE OF HOTEL TRAFFIC, IT WAS 34 PERCENT, 34% COMING FROM CREWS.
AND MSC, ONCE THEY BECAME COMMITTED TO GALVESTON, I FORGET HOW MANY HUNDREDS OF THOUSANDS OF DOLLARS A MONTH THEY WERE PUTTING INTO ADVERTISING.
I KNOW WHEN I FLEW BACK EAST TO PHILADELPHIA FOR THANKSGIVING, AND IF YOU WANTED TO WATCH A MOVIE, YOU HAD TO WATCH AN MSC AD.
THAT ENDED WITH NOW SAILING OUT OF GALVESTON.
AND THEN WATCHING THE PHILADELPHIA THANKSGIVING PARADE.
THEY RUN AN ADVERTISEMENT DURING THE PARADE, WHICH ALONG WITH MACY'S AND WHATNOT PARADES, THEY WERE SELLING GALVESTON.
AND I CAN'T HELP BUT THINK THE MAJOR JUMP WE HAD IN OUR SALES TAX CAME FROM THAT.
I WILL SAY YOU HAVE RESTAURANTS, IF YOU NOTICE, YOU HAVE ADVERTISING WARS GOING ON NOW. I MEAN, YOU'VE GOT ALL THREE OF THOSE THAT ARE RUNNING ADS.
YOU KNOW, CARNIVAL WAS AT THE RODEO,
[00:40:01]
AND I WOULD SAY THAT YOU KNOW, I SPOKE THE OTHER DAY TO THE WARD OF THE LODGING ASSOCIATION, AND ONE OF THE GIRLS, I THINK SHE WAS FROM MOODY, SAID TO ME, YOU KNOW, WE ARE NOW ON CARNIVAL'S WEBSITE, SO YOU CAN BOOK AN EXCURSION.WE'VE BEEN TRYING TO GET THERE, AND IT'S NOT EASY, BUT, YOU KNOW, BECAUSE THEY TAKE A CUT, RIGHT? AND SO, YOU KNOW, BUT FINALLY SHE SAID, YOU KNOW, WE'RE ON THEIR WEBSITE AND, YOU KNOW, AND MOODY GARDENS HAS REALLY STEPPED UP ALSO.
THEIR GAME IN GALVESTON AS IT RELATES TO CRUISING AND SHOWING THEMSELVES AT THE PORT.
WE HAVE A LOT OF DIGITAL ADVERTISING NOW ON THE PORT THAT WE'RE ACTIVELY MARKETING AND WE'RE GETTING A LOT OF GOOD RESPONSE.
AND UTMB IS ALSO LOOKING AT DOING PRE CRUISE MEDICAL EXECUTIVE VISITS.
I MEAN, I THINK PEOPLE JUST REALLY NEED TO APPRECIATE THE OVERALL BENEFIT THAT IS HAPPENING TO THE ISLAND.
I MIGHT MAKE ONE COMMENT ON THIS SLIDE.
IT'S PROBABLY OBVIOUS TO EVERYBODY BUT ME, BUT A MOVEMENT IS A PERSON ON THE SHIP AND THEN A PERSON OFF.
SO THAT 3.9, IF YOU WANT TOTAL PEOPLE, IT'S DIVIDED BY TWO.
BASICALLY A LITTLE UNDER 2 MILLION INDIVIDUAL HUMAN BEINGS.
ASSUMING EVERYBODY COMES BACK.
AND IF YOU LOSE ONE, THEN SOMETIMES IT'S MY FAULT.
BUT JUST WHAT THOSE NUMBERS AND THAT'S THE WAY I THINK THE CRUISE BUSINESS TALKS IN BOOTH.
YEAH, AND THAT'S EXACTLY THAT'S OUR REVENUE MODEL.
YOU GET PAID BY BOOTH. THE CITY GETS PAID BY BOOTH.
HERE AGAIN, I THINK I'VE ALREADY SAID THIS ONE.
AM I GOING BACK? OH, I AM GOING BACK.
THIS HAS COME UP BEFORE AND SO WE THOUGHT WE WOULD PUT THIS IN HERE.
THE TALKS ABOUT THE UTILIZATION OF THE CRUISE TERMINALS SEVEN DAYS A WEEK.
AND OBVIOUSLY YOU'RE STILL ALWAYS GOING TO SEE SATURDAY AND SUNDAY AT THE TOP BECAUSE THAT'S WHAT EVERYBODY WANTS.
BUT YOU'RE SEEING RIGHT NOW, YOU'RE SEEING CARNIVALS HERE TODAY.
THEY'RE DOING THE FIVE AND FOUR DAY CRUISES AND SO THIS IS GETTING UTILIZATION IN THE MIDDLE.
CRAZY THAT FRIDAY'S LOWER THAN THURSDAY'S.
PEOPLE WANT TO ENJOY THEIR FRIDAY.
WHY NOT A FIVE DAY WEEKEND? YEAH.
WELL, YOU'RE GOING TO SEE SOME INCREASES IN THAT BECAUSE WE'VE GOT CONVERSATIONS RIGHT NOW.
I'VE BEEN TRYING TO SELL FRIDAYS EVER SINCE I CAME HERE BECAUSE FRIDAYS ARE OPEN, CONTRACTUALLY OPEN.
AREN'T THEY DOING THE NINE DAY CRUISES TOO? THEY'RE DOING SOME 14 DAY CRUISES, YOU KNOW, AS ROYAL AND CARIBBEAN HAVE THEIR THIRD SHIP IN HERE.
THE LUGGAGE IS BRUTAL ON THE FOURTH.
AND THIS IS WHAT CAME OUT OF THE MASTER PLAN ON A 20 YEAR FORECAST.
BA DID A MINIMUM, MAXIMUM, AND KIND OF IN BETWEEN WHERE WE THINK WE ARE.
SO IN THEORY, IN 2045, WE COULD HAVE 5 MILLION PASSENGERS HERE.
TO MAKE SURE THAT GOES SMOOTHLY, I WAS DOWN HERE THIS PAST SUNDAY AND THE TRAFFIC WAS MOVING.
WE HAD THREE SHIPS IN HERE SUNDAY.
YOU KNOW, THIS IS A GRAPHIC THAT TALKS ABOUT THE YEARS AND WHEN WE COULD SEE.
IF YOU LOOK AT THE MASTER PLAN, AND I DON'T WANT TO GET EVERYBODY EXCITED, BUT IF YOU LOOK AT THE MASTER PLAN, THERE'S A POTENTIAL FOR SEVEN BIRTHS.
AND, YOU KNOW WHAT YOU'LL SEE IN SOME OF THE DRAWINGS IS A REDESIGN OF CRUISE TERMINAL 28, WHICH WOULD ALLOW FOR MORE THAN ONE SHIP TO BERTH AT THAT ONE TERMINAL AT THE SAME TIME.
IT DOESN'T MEAN SEVEN TERMINALS IS WHAT HE'S SAYING.
IT DOESN'T MEAN SEVEN TERMINALS.
AND THAT WOULD BE THE ECONOMY SCALE FOR US.
IF WE COULD BUILD THAT SIXTH AND SEVENTH BERTH USING THE SAME BUILDING AND TO BE HONEST, YOU'LL SEE HERE IN A MINUTE, WE'RE TALKING ABOUT IF THAT WERE TO HAPPEN, THE DESIGN OF THAT WOULD ALSO ALLOW US TO UNLOAD CARGO AT THAT SAME BERTH.
SO WE WOULD CALL IT A FLEX BERTH.
SO IT WOULD BE BACK FURTHER FROM THE WATER, YOU HAVE LONGER GANGWAYS, BUT THEN YOU WOULD BE ABLE TO.
UNLOAD CARGO THERE BECAUSE RIGHT NEXT TO THAT IS YOUR MAXIMUM USE DURING NON CRANK TEST AND YOU AND THAT'S WHERE THE GRAIN ELEVATOR WAS SO YOU COULD USE THAT FOR ALSO CARGO SO ATTENDED LAST NIGHT AND OF COURSE OBVIOUSLY WATCHED ALL THE SLIDES.
[00:45:01]
AREA WITH? YOUR SIDE THAT INCLUDED? YEAH, IT WAS EVENTUALLY.I THINK WE'LL SEE IT HERE IN JUST A SECOND, BUT IT WAS, WE HAD IT JUST A MINUTE AGO.
SO A QUESTION THAT CAME OUT JUST FROM THE AUDIENCE LAST NIGHT WAS TYPE OF CARGO THAT COULD BE IN COMBINATION? WELL, YOU KNOW, THE THING ABOUT CARGO IS THAT YOU UNLOAD IT AND YOU MOVE IT.
SO, YOU KNOW, YOU COULD VIRTUALLY USE ANY KIND OF, PUT ANY CARGO THERE, EVEN CONTAINERS, BECAUSE YOU'RE GOING TO MOVE THEM.
SO I GUESS THE SPECIFIC QUESTION WAS, YOU KNOW, WITH THE AMOUNT OF BLADE TRANSPORT THAT WE HAVE HERE, IF THERE WAS ENOUGH ROOM FROM THAT BACKSIDE OFF THAT COMBINATION, IF THERE WAS ENOUGH ROOM FOR ACTUALLY BLADE UNLOADING, AND IF THAT WAS AN ISSUE OR IF IT WAS JUST SPECIFIC TO CERTAIN TYPES OF CARGO THAT COULD BE UNLOADED THERE.
WELL, I MEAN, YOU KNOW, THE BLADES YOU KNOW, WE RIGHT NOW WILL BE STORING BLADES THERE.
AND SO THEY COME OFF RIGHT NOW.
AND OBVIOUSLY THE DESIGN WILL HAVE TO BE ABLE TO INCLUDE THAT.
YOU KNOW, AND THERE'S ALWAYS THIS UNCERTAINTY ABOUT THAT BUSINESS.
YOU KNOW, I MEAN, WHETHER OR NOT YOU'RE GOING TO HAVE CONTINUED FEDERAL SUBSIDIES IN THAT BUSINESS OR NOT.
AND SO THAT MAKES IT QUESTIONABLE ON HOW LONG THAT BUSINESS IS GOING TO BE GOING.
THIS YEAR, I MEAN, WE'RE DOWN THE FIRST QUARTER THIS YEAR.
STARTING SECOND QUARTER, WE'VE ALREADY GOT RESERVATIONS FOR A LOT OF BLADES COMING IN HERE.
AND THESE ARE ALL INLAND PROJECTS.
IT LOOKS LIKE IT'S GOING TO LEND ITSELF VERY WELL TO RORO CARGO BECAUSE MOST OF THOSE ARE TAIL RAMPS ANYWAY.
SO THAT'S GOING TO BE YOUR CASH COW AT THAT LOCATION.
AND TYPICALLY, THAT IS OUR BIGGEST CASH COW NOW IS THE RORO BUSINESS.
AND THAT DOESN'T MEAN JUST CARS.
OBVIOUSLY, THAT MEANS FARM EQUIPMENT, ANYTHING THAT'S ON WHEELS.
AND SO YOU GET THESE, YOU KNOW, 50 TON TRANSFORMERS, YEAH, AND THEY'RE ALL ON WHEELS BECAUSE THEY PUT THEM ON THESE MOFFIES AND MOVE THEM AROUND.
SO, YOU KNOW, AND WE SEE THAT POTENTIALLY ALSO AS WHERE PELICAN ISLAND WILL GO IN A ROW ROW BUSINESS.
YEAH, I WAS JUST TRYING TO GET A PERCEPTION OF THE DEPTH OFF OF, YOU KNOW, BASICALLY OFF OF THE YEAH, AND THIS IS PROBABLY NOT TO SCALE HERE, BUT YOU KNOW, THERE'S A LOT OF POSITIVE FEEDBACK ABOUT THE ON SITE PARKING GARAGES.
A LOT OF POSITIVE FEEDBACK FROM THAT.
AND THAT ASSISTS ON HARBORSIDE DRIVE, TOO.
WELL, IT ASSISTS ON HARBORSIDE DRIVE, AND IT GIVES YOU WAY MORE LAY DOWN AREA AND OTHER OPPORTUNITIES, TOO.
YEAH, AND IF YOU NOTICE, WE HAD WHICH I'D LOVE TO TALK TO YOU ABOUT ONE I GOT IN MIND.
EXCEPT FOR THE ANXIETY THAT IT GIVES ME TO GO INTO THE GARAGE WITH MY TRUCK.
I MEAN, THIS IS, AND I DON'T KNOW IF YOU'VE SEEN THIS OR LOOKED AT IT.
WE'VE GOT SOME REALLY NICE DRAWINGS OF THIS.
THAT'S WHAT THEY ARE, THEIR DRAWINGS.
I MEAN, YOU KNOW, WE'RE TRYING TO CONCEPTUALIZE WHAT THIS COULD LOOK LIKE OUT THERE WITH A POTENTIAL ANOTHER TERMINAL IN THERE WITH THE USS TEXAS IN THERE.
PUBLIC AREAS, WATER FEATURES, THIS WAS THE WHOLE, THIS WAS AND I DON'T WANNA SOUND LIKE, BUT THIS WAS THE PLAN TO BEGIN WITH.
THE PLAN WAS WE'RE GONNA BANK ALL THIS LAND AND USE IT FOR PARKING.
AND THEN WE ACTUALLY GO VERTICAL AND THEN ALL THIS LAND NOW BECOMES USABLE BY US, BY THE CITY.
AND WE'LL PROBABLY NEVER GIVE UP THE OWNERSHIP OF THE LAND.
WE'LL DO LAND LEASES AND THINGS LIKE THAT, WHICH IS, YOU KNOW, IF YOU LOOK AT, AND I USE THIS EXAMPLE ALL THE TIME WITH SAN DIEGO.
IF YOU GO TO SAN DIEGO'S PORT AND YOU GO TO THE GASLIGHT DISTRICT IN SAN DIEGO AND YOU LOOK OUT OVER THAT WHOLE AREA, THAT'S ALL FILL.
THAT'S ALL THE PORT OF SAN DIEGO, AND IT'S ALMOST ALL LAND LEASES.
ALL THOSE HOTELS AND STUFF FROM THE GASLIGHT DISTRICT AND ALL THAT ARE RECEIVING REVENUES FROM JUST THE RENTING OF THE LAND.
SO, I MEAN, YOU CAN SEE THAT THERE'S A I THINK THIS IS PRETTY COOL, AND I THINK THERE'S SOME REALLY GOOD OPPORTUNITIES FOR EVERYONE HERE.
THERE COULD BE SOME HOUSING IN HERE AND THOSE KIND OF THINGS.
SO EVEN THOUGH WE DO DISCLAIM THIS HEAVILY ONLY BECAUSE WE CAN'T SAY THIS IS WHERE WE'RE GOING, BUT I AM ASKING FOR SOME FOOTPRINT RENDERINGS THAT SAY, OKAY, IF WE USE THIS PLAN, WHAT PIECES OF THIS, HOW WOULD THIS BREAK DOWN? AND LET'S BEGIN SOME CONVERSATIONS AND SEE WHAT HAPPENS.
YOU KNOW WHAT I MEAN? BECAUSE I THINK AS PART OF THE MASTER PLAN, BA USES A RETAIL COMPONENT.
[00:50:01]
OF THAT COMPANY? LAMBERT.CAME IN AND THEY'RE THE ONES THAT SAID THEY BELIEVE THAT THERE'S AT LEAST A THOUSAND ROOMS IN GALVESTON THAT COULD BE BUILT.
AND THEN OBVIOUSLY WE ALL KNOW ABOUT HOUSING.
WE ALL KNOW ABOUT, YOU KNOW, AFFORDABLE HOUSING AND OTHER TYPES OF HOUSING THAT COULD BE PUT IN THAT AREA.
SO I THINK IT'S A NICE RENDERING OF WHAT COULD POTENTIALLY LOOK LIKE THIS.
AND HERE AGAIN, THIS IS WHAT TALKS ABOUT EACH ONE OF THOSE AREAS.
WHAT YOU CAN SEE IN MULTIFAMILY AND RETAIL AND HOTEL AND ALL THOSE THINGS THAT WILL CREATE A LOT OF TAX REVENUES, A LOT OF REVENUES FOR THE PORT, AND, YOU KNOW, ACTUALLY WILL, YOU KNOW, I MEAN, REALLY ENHANCE THE PORT AND THE WATERFRONT.
THIS IS, YOU KNOW, THIS WAS ALL DONE WITH ARTIFICIAL INTELLIGENCE, AI.
YEAH, THEY CONVERTED THE TEXAS FROM A DREADNOUGHT TO AN IOWA CLASS BATTLESHIP.
BUT, YOU KNOW, IT JUST GIVES YOU AN IDEA.
I MEAN, I THINK IT'S GREAT FOR THE CITIZENS.
YOU KNOW, WE HAVE A GREAT AREA.
PEOPLE CAN WALK AROUND AND COME DOWN THERE.
YOU COULD PUT A LITTLE AMPHITHEATER IN THERE OR SOMETHING LIKE THAT.
BUT, I MEAN, IT'S AND THEN YOU CAN SEE UP IN THE RIGHT HAND CORNER WHAT THE THOUGHT IS.
YOU KNOW, YOU PUT A SMALL HOTEL ROOM IN THERE, 200 ROOMS, AND A HIGH SOME OF THE WATERFRONT IF YOU WANTED TO YOU KNOW NOT SEE PARKING THERE YOU CAN SEE YOU DON'T REALLY SEE MUCH PARKING DECKS THERE AND THEY'RE ALL KIND OF TUCKED BACK IN THERE I SEE DETENTION I LIKE YEAH AND THIS IS THIS IS YOU KNOW A WALKING PASS BASICALLY YOU KNOW TO SHOW HOW WE COULD HOW WE'RE DEPICTING YOU KNOW PEOPLE BEING ABLE TO WALK AROUND IN THOSE AREAS UM, INTERNAL ROAD NETWORK, JEFF? I'LL LET YOU TALK ABOUT THE INTERNAL ROAD.
THE INTERNAL ROAD NETWORK WAS SOMETHING THAT CAME FROM THE 2019 PLAN, AND THIS IS JUST OUR PROGRESS OVER TIME.
WE'VE COMPLETED FOUR SEGMENTS SO FAR OF THE INTERNAL ROAD.
WE'RE ON NUMBER FIVE RIGHT NOW, AND WE'RE ABOUT TO GET STARTED ON THE LAST ONE.
SO BLUE IS WHAT WE'VE COMPLETED.
LIKE THE 20TH, 23RD STREET, THAT'S A CONSTRUCTION PROJECT WE'RE WORKING ON RIGHT NOW.
WE'RE EXPECTED TO WRAP THAT UP THIS SUMMER, WORK ON THAT.
THEN YOU'LL BE ABLE TO DRIVE FROM CRUISE TERMINAL 25 ALL THE WAY DOWN TO CRUISE TERMINAL 10 INSIDE THE PORT, AND ACTUALLY BEYOND, DEPENDING ON CRUISE OPERATIONS AND WHAT THE BEST WAY TO MANAGE TRAFFIC IS.
YOU MAY HAVE TO LIMIT TRAFFIC MOVEMENT FROM TIME TO TIME.
THE YELLOW FROM 33RD TO 41ST, OUR BOARD JUST APPROVED EARLIER THIS WEEK A CONSTRUCTION CONTRACT.
SO IN ABOUT 400 DAYS, WE'LL HAVE A THREE LANE ROADWAY THERE.
CAN YOU TALK A LITTLE BIT ABOUT THE TYPE OF TRAFFIC AND THE CAPACITY? YOU KNOW, I'VE GOT A LOT OF QUESTIONS ABOUT THE SAME EVENT THE OTHER DAY.
ARE WE GOING TO BE ABLE TO GET ALL THE PEOPLE HEADING TO THE CRUISE SHIP TERMINAL OFF OF HARBORSIDE AND ONTO THIS INTERIOR ROAD, OR WHAT? WHY NOT? SO THE THOUGHT HERE IS THE ROAD WILL HELP EASE CONGESTION ON HARBORSIDE.
I DON'T KNOW IF THE END SOLUTION IS GOING TO BE THAT WE TAKE EVERYONE OFF.
HARBORSIDE AND PUT IT ON THE INTERNAL ROAD AT 33RD STREET BECAUSE THAT MIGHT JUST CREATE BIGGER ISSUES AT 33RD STREET AND SO IT'S IT'S GOING TO BE USED AS A TOOL AND IT'S GOING TO BE OPTIMIZED IN THE BEST POSSIBLE WAY THAT WE CAN EFFECTIVELY MITIGATE TRAFFIC ON HARBORSIDE DRIVE AND THAT'S OUR PLAN AND QUEUING QUEUING IS A BIG PART OF IT I MEAN IT'S GETTING THE PEOPLE OFF OF HARBORSIDE INTO THE PORT SO THAT THEY CAN QUEUE AND GET INTO THE AS WE BUILD UP MORE PARKING DECKS THEN WE'LL TAKE AND THAT'S HOW YOU'RE GOING TO GET EVERYBODY OFF THEY'RE STILL GOING TO BE ON HARBORSIDE DRIVES.
WE'RE WORKING WITH THE CRUISE SHIPS TO GET THE DISEMBARKATION AND EMBARKATION TIMES KIND OF LINED UP.
AND I WOULD TELL YOU THAT 25 AND 28 IS NOT REALLY EFFICIENTLY DESIGNED INSIDE THE PORT.
SO, YOU KNOW, THAT'S SOMETHING WE WILL LOOK AT IF WE GET INTO SOME DEVELOPMENT LATER IN MID PORT, THAT AREA RIGHT IN THERE.
I MEAN, IT'S GOING TO MAKE SENSE TO REDEVELOP.
SO WE'RE BUILDING ROADS, NEW ROADS, AND THEY'RE TAKING UP RAIL.
THE ROAD IS BASICALLY ONE WAY, ONE WAY, AND ONE WAY THE OTHER.
JUST TWO LANES, RIGHT? THE NARROWEST PART BETWEEN 23RD STREET AND ABOUT 17TH STREET IS TWO LANES.
WEST OF 23RD STREET, IT'S AT LEAST THREE LANES.
AND THEN EAST OF 17TH STREET, IT'S THREE AND FOUR AND FIVE.
LANES OKAY SO YOU KNOW THE CATAPULT TRAFFIC WOULD WOULD BE
[00:55:01]
NOT SPECIFIC BUT MORE TIED TO EFFICIENCY.SO YOU COULD HAVE YOU COULD HAVE SUPPLY TRUCKS FOR THE FOR THE PORT YOU COULD HAVE A PASSENGER SHUTTLES ARE A BIG AND SHUTTLE AND AND THE IDEA IS TO GET THEM ON THE 33RD FOR SOME CRUISE TERMINALS.
YES AT 33RD YEAH, THAT WOULD BE THE EARLIEST THAT I THINK PEOPLE WOULD GET OFF FOR CRUISE TERMINALS AS WE SEE IT BUT I I DON'T WANT TO SAY THAT THAT'S A DEFINITIVE PLAN BECAUSE OUR PLAN, I THINK, ULTIMATELY IS TO BE AS FLEXIBLE AS POSSIBLE AND USE THIS NEW TOOL THAT WE HAVE TO OPTIMIZE THE WHOLE SYSTEM.
ONE OF THE BIG THINGS IS GETTING THE SHUTTLES.
GETTING THE SHUTTLES OFF, AND THEY'RE DOING THAT NOW.
THE SHUTTLES ARE USUALLY 33RD.
THE FURTHEST POINT WEST THAT YOU'D BE ABLE TO GET OFF.
YEAH, YEAH, EFFECTIVELY SPEAKING FOR CRUISE TRAFFIC.
YEAH, IF YOU WENT FURTHER THAN THAT, YOU'D START COMMINGLING.
IF YOU HAD A PARKING DAY 25 OR 28, THAT WOULD BE THE KEY.
BECAUSE THEY HAVE PROBABLY TWO TERMINALS OFF OF THE HARBOR SIDE DRIVER.
AND I WANT TO SAY, TOO, THAT STATISTICALLY, IF YOU LOOK AT IT RIGHT NOW, WITH FOUR CRUISE SHIPS IN HERE, WE DO NOT HAVE A TRAFFIC PROBLEM ON.
AND I AGREE WITH WHAT WE'RE TRYING TO DO WITH THIS MOBILITY STUDY IS TO LOOK AT THE SIDE STREETS THAT ARE BEING AFFECTED.
BUT, YOU KNOW, I THINK RIGHT NOW YOU CAN LOOK AT IT.
WE HAVE THE HISTORICAL DATA THAT SAYS, YOU KNOW, PEOPLE ARE NOT WAITING IN LINE VERY LONG ON HARBORSIDE DRIVE.
YEAH, I CAN SEE THAT WHEN THE SHIPS ARE IN.
I THINK THE PROBLEM I HEAR ABOUT IS THOSE THAT ARE TRYING TO GET TO THE CRUISE SHIP GOING THROUGH FRESNO'S DOWNTOWN.
THAT'S WHY I THINK WE EXTENDED IN THE MOBILITY STUDY.
I DON'T HAVE A WHOLE LOT OF TIME, SO I WANT TO FINISH THIS OUT.
I WANTED TO GET INTO PIER 19 BEFORE WE FINISHED.
OKAY, AND THEN RIGHT HERE, JUST BRIEFLY, THIS WAS 2025 AND THE MONEY THAT WE WERE ABLE TO PAY TO THE CITY.
AND WE THINK RIGHT NOW THAT'S PROBABLY CLOSER TO $4 MILLION IN 26.
I RAN A RANSOM, YESTERDAY OR TUESDAY WHEN AT THE WARS BOARD MEETING, I HADN'T SENT A MENTION TO ROGER, BUT THE AMOUNT OF MONEY THAT WE'LL BE GETTING THIS YEAR FROM THE PORT IS GOING TO EQUAL ABOUT 7% OF THEIR NET REVENUE OVER.
SO, AND THAT IS CLIMBING EVERY YEAR.
I DID WANT TO MENTION, I'M SORRY, DR. BROWN, ON THE SLIDE PREVIOUSLY THERE, THAT LINE IN BLUE, THE MILLIONS IN INFRASTRUCTURE, I MEAN.
WE'RE ABOUT TO SPEND, WE'VE GOT THE $2.6 MILLION THAT'S GOING TO GO INTO HARBORSIDE DRIVE, IMPROVING THOSE INTERSECTIONS, REALLY, WHICH BENEFITS THE PORT.
BUT IT ALSO, I THINK THAT'S, YOU KNOW, WE'VE TALKED ABOUT HOW CAN THE PORT CONTINUE TO INVEST IN THE CITY AND GIVE MONEY BACK.
BUT I THINK THOSE ARE $2.6 MILLION IN IMPROVEMENTS ON HARBORSIDE DRIVE THAT WILL DIRECTLY BENEFIT.
SPECIFICALLY AT 16TH AND 33RD.
AND ONE MORE POINT ABOUT THAT IS WHAT MOST PEOPLE DON'T SEE OR UNDERSTAND IS WHAT'S UNDERGROUND.
WHAT WE HAVE DONE AT THE PORT UNDERGROUND, BECAUSE WE HAVE LITERALLY REBUILT THE STORMWATER SYSTEMS THAT DRAINS THE CITY, AND THOSE ARE ALL PART OF OUR PROJECTS THAT WE'VE DONE.
AND SO IT'S NOT, IT HADN'T BEEN MONETIZED, BUT THE REALITY OF IT IS IT'S BILLIONS OF DOLLARS THAT WE'VE SPENT.
ON DRAINING THE CITY, RIGHT, BECAUSE WE KNOW THE CITY SITS LIKE THIS, COMES DOWN THROUGH THERE, AND WHEN THE PUMP SYSTEM GETS IN, I MEAN, I THINK IT'S GOING TO BE A WHOLE NEW GAME.
LIKE I SAID, IT'S ON OUR MASTER PLAN IS ON THE WEBSITE, AND IT TALKS ABOUT ALL THESE THINGS.
AND IF YOU LIKE STATISTICS AND DATA AND ALL THAT KIND OF STUFF, THERE'S PLENTY OF THAT.
WHILE WE'RE ON THIS TOPIC, I WANT TO TALK ABOUT PIER 19 JUST A BIT.
I KNOW THAT THE REAL ESTATE COMMITTEE HAS BEEN LOOKING AT THAT.
YOU'VE HAD SOME STAKEHOLDER MEETINGS.
THIS IS NOT FINALIZED ON WHERE YOU'RE HEADING ON THAT.
ALEX, YOU HAD THIS ON THE AGENDA.
DID YOU WANT TO ASK QUESTIONS? ARE YOU MOVING THIS UP? YEAH, WE MOVED THIS UP.
SO SOME OF THE FOLKS FROM PIER 19 ASK ME AND THEN THAT WE GOT THAT EMAIL FROM MR. GWINNON AND I WANTED TO AFFORD AT LEAST SOMEBODY AN OPPORTUNITY TO SPEAK TODAY TO JUST KIND OF GIVE THEIR VOICE THEIR CONCERNS SO COUNCIL CAN HEAR ALL OF THEM, YOU KNOW, TO KIND OF CUT, CUT IT CLEAR AND DRY.
[01:00:01]
KIND OF AS THE CHARTER.WILL PRECLUDE ANYTHING RUINING THEIR SPACES FOR PARKING AND SUPPORTING THEIR KIND OF INFRASTRUCTURE.
SO I JUST WANTED TO AFFORD AT LEAST SOMEONE AN OPPORTUNITY FROM, WE HAVE A BUNCH OF FOLKS FROM PIER 19 HERE, BUT.
I KNOW THESE INDIVIDUALS HAVE BEEN AT THE BOARD'S BOARD VISITING ALSO ON THAT.
LET'S GET AN UPDATE WHERE WE ARE ON PIER 19.
JEFF, YOU'RE THE HEAD OF THAT.
YEAH, WE HAVE, AND ACTUALLY WE HAVE THE SAME FOLKS.
ON MONDAY, RIGHT, THE 30TH, WE HAVE A KICKOFF MEETING AT 3 O'CLOCK WITH STOSS ARCHITECTS. HE'S DOING THE WORK TO KIND OF TALK ABOUT THE CONCERNS.
AND I GUESS I WOULD SAY AS, YOU KNOW, CHAIR OF THE REAL ESTATE COMMITTEE AND CHAIR OF THE DIVORCE BOARD, THAT WE DO APPRECIATE AND UNDERSTAND THE CONCERNS.
AND I KNOW BOB MIGHT HAVE TO HOLD HIM HERE, BUT I THINK, YOU KNOW, I CAN SEE THIS BEING, I MEAN, THIS IS A CONCEPT.
IT'S AN IDEA OF WE WERE TRYING TO FIND A WAY TO CONNECT, AND YOU SAW THE DRAWINGS OF, YOU GOT PIER 21, WHICH IS REALLY KIND OF THE ACCESS TO THE WATERFRONT.
WE WANT TO HAVE THE BATTLESHIP TEXAS AT PIER 15.
HOW DO YOU GET PEOPLE, IS THERE A WAY TO GET, HOW DO YOU GET PEOPLE, TRAFFIC FROM 21 PEOPLE WALKING AND GETTING TO 6 TO 15? BOB'S BEEN VERY CREATIVE AND INSTRUMENTAL, AND ROGER, YOU HAD SOME IDEAS ABOUT, WE OWN THAT TRIANGLE OF LAND THAT HAS THE PARKING, AND WHAT IF WE MADE THAT A GREEN SPACE? WHAT IF WE DID SOMETHING NICE THERE WITH A BOARDWALK AND A WAY TO GET BACK AND FORTH? AND SO THAT WAS THE CONCEPT, AND SO THE REAL ESTATE COMMITTEE TOOK THAT ON, AND WE GOT TO THE POINT NOW WE'VE GOT SOME GRANT MONEY TO ACTUALLY GO DO SOME WORK.
BUT PART OF THE FEEDBACK FROM THE WARS BOARD, AND I KNOW FROM YOU GUYS, WAS WE NEED TO UNDERSTAND THE NEEDS OF THE TENANTS, AND WE NEED TO UNDERSTAND THEY'VE GOT OPERATIONS THERE, AND WE CAN'T INTERFERE WITH THAT, AND WE CAN'T MAKE THAT NOT WORKING.
AND SO WE DO APPRECIATE THAT THERE'S ISSUES THERE AND I THINK I YOU KNOW I COULD SEE IT WILL HAVE THE KICKOFF MEETING ON THE 30TH AND WE'LL HAVE THE DISCUSSION AND I THINK YOU KNOW I COULD SEE THAT WE YOU KNOW WE TALKED ABOUT THIS MAYBE WE DON'T DO ALL THE PARKING LOT MAYBE WE DO JUST A LITTLE BIT OF SOME STUFF ON THE THE NORTH SIDE OF THAT WITH A BULL I WOULD LIKE TO FIND SOME WAY TO GET A WALKING PATH BUT THEN KIND OF A DESIGNATED WALKING PATH DOWN FROM 21 TO PIER 15 BUT MAYBE WE DO SOME SMALLER SLICE OF THAT BECAUSE WE DO APPRECIATE THAT YOU KNOW BUILDING A BOARDWALK RIGHT ON THE DECK THAT CREATES ISSUES FOR YOU GUYS.
WE'VE GOT ALL THE TRUCKS AND THINGS AND WE HAVE TO BE VERY COGNIZANT OF THAT.
I THINK WHAT I SAY IS I THINK WHERE WE'RE AT IS WE'VE GOT AN ARCHITECT ENGINEER WHO DOES THESE THINGS FOR A LIVING.
LET'S LET THE PROCESS PLAY OUT.
I THINK WE FAIRLY SAY WE UNDERSTAND THE CONCERNS AND WE WILL CONTINUE TO HAVE THOSE DIALOGUES.
BUT LET'S LET THE LET'S LET THAT PROCESS PLAY OUT AS FAR AS TRYING TO FIND A WAY TO DEVELOP A SOLUTION THAT KIND OF WORKS FOR EVERYBODY.
AND I WOULD SAY, I GUESS MY LAST THING IS IF WE CAN'T FIND A WAY TO MAKE IT WORK FOR EVERYBODY, WE WON'T DO IT.
NOTHING THAT SAYS THAT WE HAVE TO DO THIS, IT'S AN IDEA, WE'VE GOT SOME MONEY TO STUDY IT, LET'S SEE WHERE IT PLAYS OUT.
IF WE CAN'T FIND A GOOD, REASONABLE SOLUTION, THEN IT MAY EVOLVE INTO SOMETHING AROUND TEXAS.
WE'VE GOT MARIE AND BOB THAT WANT TO SAY A FEW WORDS.
WE'RE KIND OF GETTING TOWARDS THE END HERE.
I WOULD SAY THAT NOTHING IS IN STONE.
THERE'S NO PLANS THAT HAVE BEEN FINALIZED OR EVEN CONSIDERED BY THE WARS BOARD THAT EVEN INVOLVES THIS.
HOW THIS WAS CREATED WAS BOB INTRODUCED IT AT THE LAST CITY COUNCIL MEETING, AND THE PUBLIC WOULD TAKE IT AS, OH, IT'S BEING PLANNED.
SO THAT'S WHERE THE ENGAGEMENT STARTED.
IT DID, BUT THEY'RE JUST IN THE BEGINNING STAGES OF WORKING WITH THE STAKEHOLDERS.
AND I WANNA REITERATE WHAT JEFF IS SAYING AND ROGER.
THEY'RE NOT GONNA MOVE FORWARD UNLESS WE HAVE EVERYBODY COME TOGETHER ON THIS.
WHEN THE WORDS ARE SAY WORKING ON, THE PUBLIC IS GONNA SAY, WAIT A MINUTE.
SO IT'S JUST THAT'S WHAT WE'RE DEFINING NOW, WORKING ON.
IT IS ENGAGING THE STAKEHOLDERS TO WORK OUT A, IF THERE'S A PLAN THAT WOULD BE ACCEPTABLE TO EVERYBODY.
I CAN GUARANTEE YOU THAT PORT'S GOT SO MANY OTHER PROJECTS THAT WE NEED TO GET TO.
I WANTED TO SAY IT'S NOT ONLY THE STAKEHOLDERS THAT ARE THE BUSINESSES DOWN HERE.
I MEAN I AM IN THREE TO FIVE MEETINGS ON ANY GIVEN WEEK, AND THAT FEAR IS A PART OF HISTORY.
IT ACTUALLY HAS A HISTORICAL MARKING ON IT.
[01:05:04]
THAT IS A CRITICAL PART OF OUR CITY.I MEAN, IT'S A TOURISM ATTRACTION, NOT ONLY THAT YOU CAN GET THE BEST FISH OR SHRIMP.
I MEAN, IT IS VERY MUCH A PART OF THE HISTORY OF OUR CITY.
AND ANYTHING THAT WOULD DESTROY THAT WOULD JUST BE A SHAME.
WELL, IT'S PROTECTED, RIGHT? I MEAN, SO YEAH, IT'S A LET ME JUST I TOTALLY AGREE WITH MARIE.
IN FACT, THAT'S ONE OF THE REASONS WE'RE EVEN TALKING ABOUT IT.
YOU KNOW, IT'S NOT ONLY THAT'S HISTORIC.
IT'S BEEN ON THE NATIONAL REGISTER SINCE 1975.
SO IS THE LISSA, SO IS THE BATTLESHIP.
THAT WHOLE AREA DOWN THERE IS TERRIBLY HISTORIC AND IMPORTANT TO THE STORY OF GALVESTON.
AND, YOU KNOW, WHAT WE'RE TRYING TO DO, I THINK, IS ROGER JUST ILLUSTRATED HOW MANY MORE PEOPLE ARE GOING TO BE COMING DOWN TO THAT WATERFRONT.
IT WAS A NEW BERTH OVER AT 10, WITH THE 16 RAMPING UP, WITH THE BATTLESHIP COMING, AND THEN WITH THE 400 SPOT.
PARKING LOT COMING RIGHT ACROSS THE STREET FROM PIER 19, THERE'S GONNA BE A LOT MORE PEOPLE.
SO WE WANNA MAKE IT SAFE, BECAUSE THAT IS A WORKING OPERATION DOWN THERE AT PIER 19.
THEY DRIVE FORKLIFTS AROUND AND TRUCKS AND ALL THAT.
WE WANNA MAKE IT SAFE FOR ALL OF THOSE PEOPLE COMING DOWN THERE AND SOMETHING GIVING THEM A CLEAR INDICATION OF WHERE THE PUBLIC CAN WALK AND STILL BE SAFE IS I THINK IS AN IMPORTANT THING.
AND ALSO LETTING THE PIER 19 OPERATION PARTICIPATE A LITTLE BIT IN THE SUCCESS OF THE PORT.
YOU KNOW, IT'S IMPORTANT THAT WE PAY ATTENTION TO THEM, WE PROTECT THAT OPERATION, AND DO WHAT'S BEST FOR THEM, AS WELL AS MAKE IT ACCESSIBLE FOR THE HISTORIC REASONS THAT IT IS AND, AGAIN, WE'RE NOT GOING TO DO ANYTHING UNLESS EVERY STAKEHOLDER IS ON BOARD.
YEAH, WE'RE NOT DOING AND THE THING THAT I DID I THINK THAT'S IMPORTANT.
THE THING THAT I DID WAS A STARTING PLACE.
ANY CONVERSATION NEEDS TO HAVE A STARTING PLACE.
WHETHER IT'S RIGHT OR WRONG, YOU NEED TO BE ABLE TO COMMUNICATE SOMETHING, AND YOU START WITH THAT, AND THEN YOU GET THE STAKEHOLDERS, AND YOU GO ON TO THE NEXT STEP.
LET'S JUST KIND OF WIND IT UP, ALEX.
WHEN PURE 19 WAS ON THE BALLOT, ALMOST 70%, 68% OF THE VOTERS VOTED TO PROTECT IT.
WHAT I HAVE A PROBLEM WITH IS THAT WE ARE HERE WE'RE SAYING WE'RE NOT EVEN DISCUSSING IT OR DOING ANYTHING.
WE ALREADY GOT GRANT OPPORTUNITIES TO DO ARCHITECTURAL AND RENDERING, AND WE'VE BEEN DOING IT.
WE HAVE A MEETING ON THE 30TH.
I JUST HAVE A PROBLEM TALKING ABOUT SOMETHING.
LAST MEETING, WE HEARD THAT IT WOULDN'T HURT THE CHARTER.
IT WOULDN'T BE VIOLATING THE CHARTER.
A LOT OF PEOPLE FROM PIER 19 SEE IT DIFFERENTLY.
I WANT TO GIVE MY TIME AND AFFORD THEM THE OPPORTUNITY TO GIVE A BRIEF STATEMENT.
SOMEBODY TO AT LEAST JUST SAY DO THEY WANT IT OR NOT BECAUSE THEY REALLY HONESTLY DON'T EVEN WANT THE CONVERSATION TO HAPPEN.
AND I'M TRYING TO BE A GOOD VOICE FOR PEOPLE THAT HAVE CONSTERNATION THAT WE'RE TALKING ABOUT THEIR BUSINESSES, THEIR LIVELIHOODS.
AND I THINK IT'S OWED TO THEM TO AT LEAST SAY SOMETHING TO COUNSEL.
ON THE RECORD, THAT'S SOMETHING I'M ASKING, AND I'D LIKE TO INVITE SOMEONE UP HERE TO JUST SAY IT BRIEF, AND THEY COULD BE AS BRIEF AS POSSIBLE.
THIS IS AN ISSUE THAT, I'M GOING TO BE VERY HONEST, THIS IS AN ISSUE THAT THEY NEED TO VISIT WITH THE WARS BOARD ON. THIS IS WHO'S MANAGING THIS, AND THE REAL ESTATE COMMITTEE, WHO HAS THREE COUNCIL MEMBERS ON THERE, IS INVOLVED WITH THE PORT IN LOOKING AT THIS ISSUE.
IF THERE'S SUCH A PUSHBACK, I'M NOT GOING TO BE HERE FOR PROBABLY MORE THAN TWO MORE MONTHS HERE.
BUT AS LONG AS I'M HERE, IF THERE'S ANY PUSHBACK THAT THIS GROUP, THE STAKEHOLDERS, THEY DON'T WANT TO EVEN DISCUSS ANY CHANGES DOWN THERE, WE NEED TO MOVE ON.
WE CANNOT SPEND ANY TIME IF THEY DON'T WANT TO BE INVOLVED WITH ANY DISCUSSIONS WHATSOEVER.
WE CAN JUST ASK THEM BRIEFLY, BECAUSE THEY'VE TOLD ME THEY DON'T WANT THIS.
DISCUSSED OR TALKED ABOUT ABOUT REMOVING ANY PARKING SPACES THAT THEY'RE ALREADY SHORT ON? IF THAT IS THE CASE, THAT NEEDS TO BE BROUGHT TO THE WARS BOARD AND LET THE WARS BOARD ACT ON THAT.
NOW, JUST ONE SECOND, JUST ONE SECOND.
WE HAVE A NUMBER OF PEOPLE OUT THERE.
WE NORMALLY DO NOT TAKE ANY PUBLIC COMMENT AT THE WORKSHOPS.
THE TIME FOR GIVING THE INPUT FOR THE GROUP WOULD BE AT THE REGULAR MEETING, AND YOU GET THREE MINUTES TO DO THAT TO GIVE YOUR PUBLIC INPUT AT THE REGULAR AGENDA.
IF COUNCIL WANTS TO BRING A REPRESENTATIVE UP TO KIND OF GIVE SOME THOUGHTS VERY QUICKLY TO THE GROUP, I'M VERY OPEN
[01:10:01]
TO THAT IF COUNCIL WANTS TO DO THAT.I'D LIKE TO HEAR FROM A REPRESENTATIVE AND MAKE IT AS BRIEF AS POSSIBLE.
IF ONE OF THE REPRESENTATIVES WANTS TO COME FORWARD, WE'LL GIVE YOU A COUPLE OF MINUTES TO GIVE YOUR INPUT ON THAT.
YOU WILL HAVE THE REGULAR MEETING THIS AFTERNOON AT 5.
AND IF THERE'S 50 OF YOU OUT THERE, EACH ONE OF YOU CAN COME UP AND TALK THIS AFTERNOON.
AT THE FIVE O'CLOCK MEETING OF CITY COUNCIL.
IF YOU WANT ONE REPRESENTATIVE TO COME UP THIS MORNING AND GIVE A COUPLE MINUTES OF INPUT, PLEASE FEEL FREE TO DO THAT.
I JUST WANT TO SAY I THINK THIS IS SO KEY BECAUSE UNDENIABLY MORE CITIZENS WATCH OUR WORKSHOP THAN THEY DO THE COUNCIL MEETING.
FROM MY STANDPOINT, WE'VE HEARD IT.
RIGHT? WE'VE HEARD IT, AND THAT'S THE WHOLE REASON WE'RE GOING THROUGH THIS PROCESS, IS TO HEAR IT AGAIN AND TO FIND OUT IF THERE IS A POTENTIAL SOLUTION.
AND IF THERE'S NOT A SOLUTION, AS YOU HAVE STATED, WE MOVE ON.
SO IT'S NOT LIKE WE'RE NOT HEARING, OKAY? I WANT TO MAKE SURE PEOPLE HEAR.
COULD YOU IDENTIFY? I KNOW WHO YOU ARE.
COME UP SO YOU'RE IN THAT CAMERA.
THE ONLY REASON I'M HERE IS BECAUSE MR. BROWN BROUGHT IT UP AT THE CITY COUNCIL MEETING.
CAN YOU SPEAK LOUDER? YOU NEED TO COME INTO THE CAMERA.
YEAH, WE JUST JUST A SECOND, HERBERT, JUST A SECOND.
DOES YOUR MICROPHONE WORK? HELLO? HELLO? OKAY.
THE ONLY REASON I'M HERE AT THE CITY COUNCIL MEETING IS BECAUSE MR. BROWN BROUGHT IT UP AT THE CITY COUNCIL MEETING THE OTHER DAY.
CAN YOU PUT THE MICROPHONE THE PORT AND HIM HAVE BEEN HAVE STARTED CONVERSATIONS ON TALKING WITH US, BUT WE JUST WANTED TO MAKE IT KNOWN THAT WE DON'T WANT TO LOSE ANY PARKING.
WE KNOW THERE'S A GARAGE THERE, BUT IT REALLY DOESN'T WORK FOR OUR BUSINESS PLAN, AND THE BOARDWALK DOES NOT ALSO WORK FOR OUR BUSINESS PLAN BECAUSE WE'RE RUNNING TRUCKS ACROSS THERE, FISH, SLIME, AND I DIDN'T REALLY WANT THIS TO TURN INTO SUCH A BIG DEAL, GUYS, BUT IT SEEMS LIKE IT HAS.
LET ME ASK YOU, I JUST NEED TO GO OUT OF LINE.
IS THE GROUP OPEN TO HAVE A DISCUSSION ABOUT WHAT COULD BE DONE DOWN THERE, KNOWING THAT NO PLANS HAVE BEEN MADE? I MEAN, I PERSONALLY AM OKAY LOOKING AT PICTURES, BUT WHEN PEOPLE ARE SPENDING $50,000 ON AN ARCHITECT TO DRAW SOMETHING, THEN YOU'RE LIKE, OKAY, THEY'RE GOING TO DO SOMETHING.
SO IT'S LIKE, YOU KNOW, THAT'S WHERE WE'RE AT.
I THINK I HOPE YOU HEAR WHAT WE'RE SAYING.
AND WE'RE DOING THAT WITH THE PORT RIGHT NOW.
BUT IT JUST GOT BROUGHT UP AT A COUNCIL MEETING.
SO WE JUST WANTED TO HAVE OUR VOICE HEARD HERE AS WELL.
AND YOU KNOW I'VE TALKED, YOU KNOW YOUR BROTHER TALKED.
AND THEY, THEY, WE TALKED ABOUT THE SAFETY ISSUE OF HAVING PEOPLE.
IT IS A WORKING AREA RIGHT, SAFETY ISSUE AND THAT'S ME.
WE DON'T WANT TO LOSE ANY PARKING.
WE DON'T WANT PEOPLE WALKING IN FRONT OF OUR BUSINESSES WHEN WE GOT FORKLIFTS AND FISH.
ANOTHER THING, IT'S VERY SMALL.
MR. BROWN REFERRED TO ME AS NICKY THE OTHER DAY.
WELL, I APPRECIATE YOU HELPING ME OUT WITH MR. PARETO.
AS I MENTIONED, AS LONG AS I'M HERE, UNLESS THIS GROUP IS 100% FOR THIS, WE'RE MOVING ON WITH SOMETHING ELSE.
AND CRAIG, I'LL ECHO THAT FROM THE BOERSPORT SIDE AND FROM THE REAL ESTATE SIDE.
IF WE CAN'T COME TO SOMETHING THAT WORKS FOR YOU GUYS, THEN WE WON'T.
MAYOR, I HEAR EVERYTHING YOU'RE SAYING, THAT THEY NEED TO SPEAK TO THE PORT AND WORK THINGS OUT, AND I THINK THEY WILL.
THE DIRECT READ FROM THE LAST MONTH'S AGENDA ITEM THAT CREATED THIS.
AND WHY THEY BROUGHT IT NOW AND FEEL LIKE IT'S IN COUNCIL'S HAND IS AN ITEM 3G UPDATE AND DISCUSSION OF THE PIER 19
[01:15:01]
PROPOSED CHANGES AS THEY RELATE TO THE PORTSMASTER PLAN.THAT IS WHY WE CAN'T JUST SAY, OH, IT'S NOT OUR PROBLEM.
WE PUT IT ON OUR AGENDA AND WE DISCUSSED IT AND WE DISCUSSED AN OPINION OF WHAT IT COULD POSSIBLY BE.
I KNOW THAT THEY NOW HAVE THE ABILITY TO COMMUNICATE AMONGST THEM AND I THINK THAT WAS GOING ON ALL ALONG.
WE JUST KIND OF, I THINK WE KIND OF STRUCK A NERVE.
STRUCK A NERVE AND WE GOT A LITTLE PRE INVOLVED THAT WE MIGHT HAVE NOT NEEDED TO BE.
WELL, I THINK I'M GOING TO I UNDERSTAND WHERE YOU'RE COMING FROM, BOB.
PERSONALLY, I THOUGHT IT WAS IMPORTANT THAT THE COUNCIL BE UPDATED ON WHAT'S GOING ON OVER AT THE PORT.
YEAH, THAT'S WHAT WE WERE DOING TODAY.
EXACTLY, AND THAT'S WHAT BOB DID.
THAT WAS VERY SPECIFIC TO PIER 19.
THAT'S WHY WE HAVE PEOPLE CONCERNED TODAY.
AND WE KNEW THAT THAT WAS AN ISSUE THAT MIGHT NOT BE RECEIVED WELL, AND I WANTED BOB TO UPDATE THE COUNCIL.
TO MAKE SURE COUNCIL KNEW WHERE WE WERE ON THAT.
BUT WHERE WE ARE IS WE ARE MOVING IN THE DIRECTION THAT STAKEHOLDERS WANT TO MOVE.
SO THAT YOUR MEETING'S COMING UP WHEN? MONDAY AT 3 O'CLOCK.
WE'LL HAVE ALL THE PORT STAFF THERE AND THE STAKEHOLDERS.
AND IF MONDAY, IF THE GROUP, IT'S UP TO THE PORT HERE, BUT IF THE GROUP MONDAY SAYS I DON'T EVEN WANT TO TALK ABOUT ANY OF THIS STUFF, AND ROGER, I'D BE INVOLVED.
WELL, YOU KNOW, I'M GOING TO MOVE ON TO ANOTHER PLAN.
I MEAN, THAT'S THE WAY I OPERATE.
I DO REMEMBER IN OUR LAST REAL ESTATE MEETING, THOUGH, THAT THAT CONVERSATION CAME UP.
SO IT WAS DISCUSSED, THE CONCERNS OF KATIE'S.
IT WAS DISCUSSED AT OUR REAL ESTATE MEETING.
SO IT WASN'T JUST COMPLETELY IGNORED.
AWESOMELY SURPRISED THAT A PLAN IS GOING TO ACTUALLY HAPPEN.
THERE HAVE BEEN SO MANY PLANS ON SHELVES, AND I'M MAKING COMMUNITY PLANS TO EVERYTHING ELSE.
IT NEVER HAPPENS THE WAY THAT IT SAYS IN A PLAN, NEVER, EVER, EVER.
THAT'S WHY WE HAVE LAND SUBSIDENCE FROM ALL THE PLANS.
WE WERE SENSITIVE TO THE NEEDS AND LISTENING TO THE NEEDS OF KATIE.
I WANTED TO SAY ONE LAST THING ABOUT THE PORT.
THE PORT IS DOING EXTREMELY WELL OVER THERE.
AND WHAT'S SO EXCITING ABOUT THE PORT, THEY'RE DOING EXTREMELY WELL WITH THEIR CARGO SHUT DOWN QUITE A BIT RIGHT NOW.
ONCE THAT CARGO AND THEIR LAY DOWN AREAS AND THE SLIP FIELDS OCCUR, YOU'RE GOING TO SEE THIS PORT REALLY EXPLODE EVEN MORE SO. AND I WANT TO THANK THE PORT FOR WHAT THEY'RE DOING.
AND I WANT TO THANK MOONHEAD WITH THIS MOBILITY STUDY.
THIS IS GOING TO BE VERY IMPORTANT TO MAKE DECISIONS FOR THE EXPANSION OF THE PORT.
THE POOR ROGER THANK YOU THANK YOU THANK YOU THANK YOU VERY GOOD WE'RE MOVING ITEMS
[4.B Clarification Of Consent And Regular City Council Agenda Items - This Is An Opportunity For City Council To Ask Questions Of Staff On Consent And Regular Agenda Items (1 Hour)]
FOR BEACH AND ELMA FOR THE CLARIFICATION OF CONSENT AND REGULAR CITY COUNCIL AGENDA ITEM BOB, DO YOU FEEL COMFORTABLE HEADING OFF ON THIS? I THINK SO.11 W EAST END LIFT STATION? 11 W.
BRANDON, IS TYSON OUT THERE? YES.
TYSON ARNOLD, DIRECTOR OF MUNICIPAL UTILITIES.
TYSON, YOU'VE GOT TO START FAST.
YOU COULD IDENTIFY YOURSELF, SIR.
TYSON ARNOLD, DIRECTOR OF MUNICIPAL UTILITIES.
THIS 11W IS ABOUT THE EAST END LIFT STATION.
[01:20:01]
I HAVE A QUICK QUESTION.WHERE IS THAT LIFT STATION AND WHAT'S THE SCHEDULE? IS THERE GOING TO BE ANY IMPACT ON ANYBODY AROUND THERE? SEVERAL LIFT STATIONS ARE ON.
SO THIS IS SEVERAL LIFT STATIONS.
THE NW ARE BOTH ENCOMPASSING ABOUT 30 LIFT STATIONS ACROSS THE ISLAND.
THESE ARE IMPROVEMENTS BEING MADE AS A PART OF HURRICANE BARREL RECOVERY FUNDS.
SO IT'S ABOUT 15 LIFT STATIONS I'LL MAYBE SEND.
AND WHAT'S THE SCHEDULE ON THAT? WELL, WE'VE GOT TO GET THIS APPROVED, AND THEN WE'RE HOPING BY THE END OF THE YEAR TO HAVE ALL OF THE WORK.
AND NO IMPACT ON ANYBODY THAT'S JUST BEEN CERTIFYING YOU THAT WHILE THEY'RE BEING REPAIRED? THERE WILL BE SOME IMPACTS AS FAR AS SHUTTING THEM DOWN TO DO SOME OF THE WORK, BUT WE'LL ACCOUNT FOR THAT AND BYPASS.
IT WON'T NEGATIVELY AFFECT ANYBODY.
OKAY, THAT'S ALL I NEED TO THINK.
WHERE WERE THE TWO, OR IS IT JUST A MULTITUDE OF TWO FOR B&W? SO IT'S BETWEEN THESE TWO ITEMS, IT'S ABOUT 30 DIFFERENT LIFT STATIONS.
RANGING FROM, LIKE, WHERE ARE THE BIG ONES AT? 51 I BELIEVE IS ONE OF THE BIG ONES.
I THINK THEY'D LIKE PHYSICAL LOCATIONS.
SO, I'LL HAVE ENGINEERS SPEAK.
OVER ON 53RD STREET AND AVENUE IS ONE OF THE BIG ONES THAT WE'VE GOT SOME WORK GOING ON.
THAT'S THE ONE BEHIND THE COURTHOUSE? NO, THAT'S THE ONE RIGHT IN FRONT OF MOODY METHODIST.
WE ALSO HAVE A CAPITAL PROJECT GOING ON THAT'S GOING TO DO SOME IMPROVEMENTS THERE AS WELL, TO COMPLETE THAT WHOLE PROJECT 26, I BELIEVE IS OVER BY THAT'S RIGHT IN FRONT OF CRUISE TERMINAL 20.
THAT'S RIGHT IN FRONT OF CRUISE TERMINAL.
ACTUALLY, IT'S IN FRONT OF THE MPG COVE.
I'M NOT JUST IN USE LOCATIONS, TYSON.
I DON'T REMEMBER ALL THE DIFFERENT LOCATIONS OFF THE TOP OF MY HEAD, BUT IT'S 30 PLUS LIFT STATIONS AND PRETTY MUCH ALL THE BIG ONES.
IT'S 30, AND WE HAVE HOW MANY TOTAL? 64.
IT'S LIKE A GOOD PRICE FOR 30 LIFT STATIONS.
THAT'S IT FOR, AND I'VE GOT ONE MORE 11JJ.
EAST END ELEVATED STORAGE TANK AND 20 INCH WATER LINE.
HOW ARE YOU? GOOD, AND YOURSELF? YES, SIR.
ROBERT WINNIKE, EXECUTIVE DIRECTOR OF PUBLIC WORKS AND ENGINEERING.
IS THIS A NEW ELEVATED WATER STORAGE TANK? YES, IT IS.
AND WHERE IS IT GOING? WE'RE PLANNING TO TRY AND PUT IT OVER BY WHERE THE OLD GO KART TRACK IS ON THE SOUTH SIDE OF THE SEAWALL.
OH, GO KART TRACK ON THE SOUTH SIDE.
YOU MEAN OVER BY STEWART PEAK? YES, SIR.
YEAH, THE BACK HALF, AS CLOSE TO THE SEAWALL AS WE CAN.
IT'S A PRETTY GOOD PLACE TO PUT IT.
IT'S ON A CREEDING BEACH, SO WE SHOULDN'T BE IN JEOPARDY OF LOSING THAT TANK.
I THINK WE'VE ALSO ADDRESSED AT ONE TIME THE ELEVATED TANK AT UCMD.
IT'S SCHEDULED FOR SOME REPAIRS AND RENOVATIONS.
YEAH, WE GET BIDS BACK ON THAT ON APRIL 16TH.
YEAH, FIX THAT STAY, THAT GUY'S STAY THAT'S KIND OF DANGLING.
SO JUST GIVE US AN IDEA OF THE ORDER OF MAGNITUDE OF ITS SIZE THAT THIS TANK MIGHT BE ONCE IT'S THERE.
SO IT'S GOING TO BE SIMILAR TO THE SIZE OF THE ONE IN JAMAICA BEACH.
SO ROUGHLY I THINK ABOUT 150 FEET TALL. I DON'T HAVE THE EXACT DIAMETER OF IT, BUT IT'LL BE SOMETHING SIMILAR TO THAT.
UTMB IS ONLY A MILLION GALLON TANK.
BUT THIS IS A DIFFERENT DESIGN TOO.
IT'S NOT GOING TO BE THAT STEEL SPACESHIP ON LEGS.
IF YOU HAVE A UTMB, THIS IS GOING TO BE MUCH MORE LIKE JAMAICA BEACH WHERE IT'S GOT A PEDESTAL AND THEN THE BOWL UP ON TOP.
AND THIS WILL BE ACTUALLY ON THE SAND? IT'S GOING TO BE NEAR THE SAND.
IT'S GOING TO BE SOUTH OF THE SEAWALL.
BUT AS CLOSE TO THE SEAWALL AS WE CAN GET.
AND THEN UP ON THE I GUESS TO ELEVATE IT? THE LAND ITSELF IS PRETTY HIGH ALREADY.
SO YEAH, THE FOUNDATION WILL BE EXTENDED TO THE GROUND TO MAKE IT STABLE.
AND WHAT'S THE SCHEDULE ON THAT?
[01:25:01]
SO WE'RE JUST GETTING READY TO DO DESIGN ON THIS RIGHT NOW.WE HAVE A 12 TO 18 MONTH DESIGN.
PERMANENT IS GOING TO BE THE BIG PIECE ON THIS ONE BECAUSE WE HAVE TO DEAL WITH THE CORPS OF ENGINEERS TO GET ACROSS.
THE SEAWALL WITH THE TRANSMISSION LINE.
OH, YOU'VE GOT TO GO THROUGH THE SEAWALL.
WE'RE GOING TO HAVE TO PUSH THROUGH THAT.
IS IT UNDER IT? THEY HAVEN'T FIGURED THAT OUT YET.
WE'LL GET THERE WHEN WE GO THROUGH DESIGN.
I HOPE THEY KEEP US INFORMED ON THE PROGRESS ON THAT.
AND THEN IT'S INTENDED TO SUPPORT.
SO BASICALLY THE MAIN PRESSURE PLANE OF THE WATER SYSTEM, SO FROM 81ST STREET ALL THE WAY TO THE EAST END OF THE ISLAND.
81ST ALL THE WAY TO THE EAST END? CORRECT, YEP.
IT'S IMPORTANT TO HAVE WATER PRESSURE ON THE ISLAND.
THE MORE ELEVATED WATER YOU HAVE, THE MORE PRESSURE YOU HAVE ACROSS THE ISLAND SYSTEM. OKAY, THAT'S GREAT.
MARIE? NO, YOU CAN COME BACK TO ME.
I GUESS THIS TIES INTO 6B SOMEHOW TOO, BUT I GUESS WE'RE DISCUSSING THAT TOO ON THE AGENDA, RIGHT? SURE.
I KNOW WE'RE DISCUSSING IT, SO I JUST WANTED TO BE SPECIFIC IN 10A.
SO THE FUNDS FROM THE INTERNAL SERVICE FUNDS, IT'S THE $500,000 TO THE IT IMPROVEMENT FUND.
AND THE GROUP HEALTH CLAIMS, RIGHT? CORRECT.
SO WE DID NOT MOVE THOSE $800,000 TO ANY GENERAL FUND? TOTALLY DIFFERENT DEAL.
SO FIRST OF ALL, THIS IS REGARDING THE CLOSING OF FISCAL YEAR 25.
AND SO THE INTERNAL SERVICE FUNDS THAT WERE USED TO OFFSET, THE ONES THAT WERE IN FUND BALANCE THAT WERE USED TO OFFSET THE COSTS ARE IN FISCAL YEAR 26.
OKAY, SO IT'S TWO DIFFERENT FISCAL YEARS.
THIS IS SPECIFICALLY RELATED TO, WITH REGARD TO TECHNOLOGY SERVICES, HISTORICALLY, THIS YEAR, NOT JUST LAST YEAR, BUT HISTORICALLY, WHEN THERE HAS BEEN ESPECIALLY LAPSE RELATED TO SALARIES, THOSE FUNDS, SINCE THEY HAVE BEEN CONTRIBUTED TO TECHNOLOGY SERVICES IN THE RATIOS BY DEPARTMENTS, EVERYBODY'S CONTRIBUTING AT THEIR CORRECT LEVEL.
WHATEVER IS LEFT, A PORTION OF THAT, HAS BEEN TRANSFERRED TO THE TECHNOLOGY IMPROVEMENT FUND.
THIS IS THE VACANCY LAPSE FOR IT FOR THE EIGHT POSITIONS THAT GOES TO SO THIS WOULD HAVE BEEN, FOR LACK OF A BETTER TERM, AN EXCESS INTO INTERNAL SERVICE FUNDS ON TOP OF THE $800,000 THAT WAS PORTIONED OUT.
WELL, SO THIS IS SPECIFICALLY TO WHAT REVENUE WAS OVER.
EXPENDITURES IN FISCAL YEAR 25 RELATED TO TECHNOLOGY SERVICES AND IT'S BEING MOVED TO THE CAPITAL FUNDS FOR TECHNOLOGY IMPROVEMENT.
WHAT THAT MEANS IS ALL THE CITY DEPARTMENTS HAVE CONTRIBUTED EQUITABLY TO THOSE TECHNOLOGY SERVICES AND WHAT'S LEFT IT MAKES SENSE TO MOVE IT TO THAT CAPITAL FUND TO HAVE IT FOR FUTURE CAPITAL INVESTMENT IN TECHNOLOGY.
THIS IS THE VACANCY LAPSE WILL PAY FOR FUTURE IMPROVEMENTS TO THE TECHNOLOGY IMPROVEMENT.
WHICH ALSO KEEPS YOU FROM HAVING TO BUDGET THAT.
AND INCREASE THOSE RATES IN FUTURE YEARS FOR CAPITAL IMPROVEMENTS.
BUT IT WOULD BE, IT'S ALMOST LIKE A, WELL, IT'S ALMOST LIKE YOU'RE BUDGETING FOR THAT, BUT, YOU KNOW, IT WOULD BE IF IT WAS COMPLETELY FULL.
WELL, I WOULD SUGGEST THAT IT WOULD PREFER TO HAVE THE EMPLOYEES.
THEY'RE REALLY STRESSED ABOUT IT. I'M JUST, THIS IS FOR.
MY OWN UNDERSTANDING OF HOW THAT MOVES OVER, BECAUSE THAT WAS BROUGHT UP.
THIS IS THE VACANCY LABS FOR IT. I HAVE A QUESTION ABOUT THAT, BECAUSE WE HAVE ONE ON THIS AGENDA AS WELL AS WE'VE HAD ONES ON PRIOR AGENDAS WHERE THEY BROUGHT IN CONTRACT SERVICES TO FILL.
I THINK WE HAVE ONE ON THIS AGENDA FOR $300,000.
SO, WE HAVE THE MONEY LEFT, BUT WE PAID FOR THE TEMPORARY PEOPLE OUT OF WHAT FUNDS? WELL, OUT OF THOSE, SO THIS IS FISCAL YEAR 25 ONCE AGAIN.
THIS IS WHAT WAS LEFT OVER AS OF SEPTEMBER LAST YEAR.
IN THIS FISCAL YEAR, I THINK TECHNOLOGY SERVICES WOULD HAVE AGGRESSIVELY TRIED TO HIRE FOR THOSE POSITIONS AND THEY'VE BEEN UNSUCCESSFUL AND SO THEY'RE USING A TEMPORARY AGENCY TO FILL THOSE POSITIONS AND IT'S TEMPS IT'S BEEN THE EASIEST WAY FOR THEM TO RECRUIT AND SO THEY'RE REALLY TRYING TO FILL THOSE POSITIONS BECAUSE
[01:30:01]
THEY ACTUALLY NEED THAT.HOW ARE YOU PAYING FOR THE TEMPORARY POSITIONS THIS YEAR? OH SALARIES.
SO THIS LAPSE WON'T EXIST THIS YEAR BECAUSE WE'RE USING IT TO PAY FOR THE TEMPS.
WE SEEM TO HAVE A REALLY HIGH TURNOVER IN IT, SO I WONDER HOW SUCCESSFUL IT IS USING TEMPS OR HIRING.
IT'S NOT IDEAL, BUT WE'RE AT A REAL DISADVANTAGE AT THE END OF THE ROAD.
AND A LOT OF OUR PROJECTS REQUIRE PRESENCE AND A LOT OF THE IT WORLD NOW DOESN'T LIKE PRESENCE, THEY LIKE WORK REMOVED.
SO WE'RE TRYING TO INSTITUTE AS MUCH OF THAT AS WE CAN SO WE CAN ALLOW THAT FLEXIBILITY TO GET THESE PEOPLE IN.
BUT WE'RE ALSO PRETTY MUCH BEHIND ON WAGES, TOO.
SO WE'RE TRYING OUR BEST TO GET THEM.
HOPE, DID YOU WANT TO SAY ANYTHING ON THIS? I MEAN, I CAN JUST TELL YOU THAT THE, THIS IS HOPE, IF YOU IDENTIFY YOURSELF, HOPE.
I CAN JUST TELL YOU THAT THE PREVIOUS TIMES THAT WE'VE COME TO COUNCIL AND FILLED THOSE POSITIONS WITH TEMPS BOTH OF THEM LEFT FOR BETTER PAYING JOBS THEIR SALARIES AREN'T GOOD YES SIR OKAY SO THE NEXT QUESTION I HAD WAS UM SO EVEN WITH WITHOUT THIS AMENDMENT WE'RE STILL AT 124 DAYS GENERAL FUND BALANCE YES AS OF TODAY YES OKAY WELL AS OF OUR LAST UH PLEASURE TO METHAM UM SO THIS I GUESS WOULD TIE INTO THE ACFER.
IF IT WAS WHOLLY OR PARTIALLY NOT APPROVED, WHAT WOULD THE, I GUESS I'VE READ IN THE STAFF REPORT IT'S BUDGET LAW AND BEST PRACTICE OR WHAT HAVE YOU FOR THE CONSEQUENCES OF OUR ACTIONS.
SO WHAT WOULD THAT ENTAIL? HOW WOULD THAT, I WANT TO JUST.
MY AUDITOR IS HAVING A HEART ATTACK IN THE BACK ROOM.
I DON'T MEAN TO GIVE AUDITORS HEART ATTACKS.
SO ESSENTIALLY THERE'S CERTAIN PARTS OF THIS THAT WOULD ABSOLUTELY BE NECESSARY AS COUNCIL HAS TO APPROVE THE EXPENDITURE BEFORE IT'S CONSIDERED APPROPRIATE FOR ANY FISCAL YEAR.
SPECIFICALLY, THE TECH IMPROVEMENT FUND IS ONE THAT YOU WOULDN'T HAVE TO APPROVE.
OKAY, IT WOULD IMPACT OUR FINANCIALS BECAUSE OUR FINANCIALS ARE BEING PRESENTED BASED ON THESE BUT FOR EXAMPLE IN THE GENERAL FUND.
WE'RE JUST SHIFTING BETWEEN DEPARTMENTS.
OKAY, WE'RE NOT IMPACTING THE BOTTOM LINE AND SO MOST OF THIS IS JUST TO ACKNOWLEDGE THAT IT REQUIRES COUNCIL APPROVAL FOR SO IF NOT NOW IT HAPPENED JUST YEAH, WELL, IT'S THE END OF THE FISCAL YEAR AND WE WOULD REALLY LIKE TO CLOSE 2025.
AND ONE OF THE THINGS THAT'S IMPACTING THIS NOW IS, AS YOU ALL ARE AWARE, STATE LAW CHANGED WITH THE 89TH LEGISLATURE.
AND SO THE AUDIT HAS TO BE COMPLETE BY FRIDAY.
IT HAS TO BE FILED WITH THE CITY SECRETARY'S OFFICE FOR US TO BE ABLE TO SET A TAX RATE AS COUNCIL SEES FIT.
OTHERWISE, YOU'RE RESTRICTED TO JUST THE NO NEW REVENUE, NO OPTIONS. AND SO, AND CERTAINLY WE DON'T WANT TO BE IN THE BAD GRACES OF THE STATE. SO WE WOULD PREFER FOR THE AUDIT TO BE TOTALLY COMPLETE BY FRIDAY.
SO, BUT I GUESS NOTWITHSTANDING THE GOOD OLD 89TH, SORRY, JUST TRYING TO BE SOME BREVITY HERE, SOME LEVITY HERE.
THAT'S KIND OF A WEIRD POSITION THAT WE'RE IN, THAT WE HAVE THE ACFER THAT WE'RE RECEIVING BEFORE WE'RE VOTING ON THE FINAL AMENDMENT.
SO THE ACFER IS DIFFERENT THAN THE FINAL BUDGET REPORT WE GOT LAST WEEK? OH, YEAH.
SO OUR BUDGET REPORT, OKAY, IS AN UNAUDITED BUDGET REPORT.
IT IS BASICALLY GIVING YOU OUR ASSESSMENT OF APPROXIMATELY WHERE WE'RE GOING TO BE.
BUT THAT DOES NOT GO THROUGH THE ENTIRE AUDIT, RIGHT? IT IS JUST A BUDGETARY REPORT TELLING YOU, BASED ON THE BUDGET, THIS IS WHERE OUR PERFORMANCE IS.
BUT IT IS NOT THE AUDITED REPORT THAT ACCOUNTS FOR ALL OF YOUR ACCOUNTING ACTIVITY, RIGHT? SO WHERE YOU'RE CAPITALIZING YOUR LARGE PURCHASES AND WHERE YOU'RE LOOKING AT SOMETHING VIA MODIFIED ACCRUAL.
SO THE AUDIT IS A DIFFERENT ANIMAL THAN JUST YOUR QUARTERLY AND YEAR END REPORT.
SO THIS ONE WOULD NOT BE COMPLETE AND THERE WOULD BE PEOPLE'S HAIR ON FIRE IF WE DIDN'T? IF WE WHOLLY OR PARTIALLY DIDN'T APPROVE IT.
I GOT MY QUESTIONS ANSWERED ON THAT ONE.
[01:35:02]
ON THE AGENDA.I JUST WANT TO COMMENT ON THIS.
IT'S ALMOST LIKE YOU KNOW YOU HAVE THIS MONEY.
AND YOU KNOW YOU'RE GOING TO HAVE TO USE THIS, BUT YOU CANNOT PINPOINT EXACTLY WHERE IT'S GOING.
THAT'S WHY IT'S NOT AN AUDITED BUDGET, BUT YOU KNOW THAT YOU'RE GOING TO HAVE TO SPEND THIS AMOUNT OF MONEY ON PAYROLL OR WHEREVER.
SO NOW WE'RE COMING TO THE POINT WHERE WE HAVE TO MOVE IT TO WHERE IT NEEDS TO BE, WHAT YOU ACTUALLY SPENT.
SO NOW IT HAS TO BE EVERY I DOT AND EVERY T CROSS.
POLICE CHIEF. APPROVAL OF ALL THOSE THINGS.
ENHANCED PROTECTION ARMOR, DEPLOYED DONATION, AND YOU CAN JUST TELL THE PUBLIC.
WHAT IT IS? SO OUR SWAT TEAM UTILIZES ENHANCED PROTECTIVE ARMORED PLATES AND PLATE CARRIERS TO PROTECT THEM FROM HIGH POWERED RIFLES AND AMMUNITION THAT ARE GENERALLY USED IN ACTIVITIES.
THESE PLATES ARE SPECIALLY DESIGNED TO FLOAT.
SO IF YOU GO IN THE WATER, THEY'RE BUOYANT.
AND THEY'RE NOT GONNA SUCK YOU TO THE BOTTOM, BECAUSE THE NORMAL PLATES ARE HEAVY AND THEY WILL DRAG YOU DOWN.
SO THERE'S AN ENHANCED COST TO THESE.
GALVESTON COMMUNITY POLICE FOUNDATION MADE A DONATION AND SO WE'RE ABLE TO GET SOME OF OUR TEAMS THE PLATES AND WE'RE EXCITED ABOUT THAT.
AND JUST A HEADS UP, ONE OF THE THINGS I'M GOING TO BE TALKING TO YOU ABOUT IN THIS YEAR'S BUDGET AS WE APPROACH NEXT YEAR'S BUDGET, THE CHIEF HAS BEEN, AND NOT TO TAKE ANYTHING AWAY FROM OUR CHIEF, BUT CAPTAIN STEVENS HAS DONE A FANTASTIC JOB WITH A LOT OF THIS, AND THERE IS MORE THAN JUST GETTING THE GRANT.
THERE'S A LOT OF TRACKING, A LOT OF REPORTING, A LOT THAT GOES ON AFTERWARDS, AND I'M GOING TO BE TALKING TO YOU GUYS SERIOUSLY ABOUT TRYING TO GET SOME HELP IN GRANTS, SPECIFICALLY FOR PEE, BUT MAYBE SOME OTHERS AS WELL, BECAUSE WE, AS A CITY, WE DO VERY WELL WITH GRANTS HERE.
WE LEVERAGE OURSELVES VERY WELL WITH THESE GRANTS.
IT'S BEEN PART OF OUR SUCCESS OVER THE LAST 15 YEARS.
BUT WE HAVE TO, THERE'S A LOT OF EXPENDITURE ON THE BACKSIDE OF THESE GRANTS THAT WE HAVE TO UNDERTAKE.
AND I DEAL WITH SEVERAL THE CHIEF'S OFFICERS EVERY DAY ON THIS AND I KNOW IT'S NOT THEIR PRIMARY JOB.
THEY HAVE REAL POLICE JOBS TO DO, BUT THEY'RE TRYING TO TRACK AND DO ALL THESE THINGS.
SO I'M GOING TO BE TALKING TO YOU GUYS ABOUT SOME GRANT COORDINATION AND PD BUDGETARILY AND COMING HERE.
AND I'VE TALKED TO THE CHIEF ABOUT THAT AS WELL.
AND CAPTAIN STEVENS HAS BEEN FANTASTIC IN GOING OUT AND THESE THERE'S THE 11 D PROVIDES US WITH THE OPPORTUNITY.
TO GO AFTER THIS GRANT ON A ROOK AND WHAT A ROOK DOES, IT'S AN ARMORED VEHICLE.
WE HAVE AN ARMORED VEHICLE COMING THAT'S FOR TRANSPORT, BUT THE ROOK CAN PUT A REACT TEAM FOUR STORIES IN THE AIR, COVERED BY ARMOR AND SET THEM ON A PLATFORM SO THEY CAN, WHICH IS REALLY IMPORTANT HERE BECAUSE ALMOST ALL OF OUR HOMES ARE ELEVATED.
SO IF WE HAVE SOMETHING GOING ON, IT WOULD BE GREAT NOT TO HAVE OFFICERS GOING UP A FUNNEL.
THERE'S NOTHING MORE IMPORTANT TO ME THAN THE SAFETY OF OUR OFFICERS.
AND THESE ARE IMPORTANT TOOLS FOR US TO HAVE.
IF YOU'RE GOING TO HAVE A BOAT, YOU'VE GOT TO HAVE A TRAILER.
IF YOU'RE GOING TO HAVE A SWAT TEAM, YOU'VE GOT TO HAVE THE RIGHT TOOLS.
I JUST WANTED TO MAKE A COMMENT ABOUT GALVESTON COMMUNITY POLICE FOUNDATION.
AND I BELIEVE WE'RE STILL IN NEED FOR SEVEN MORE? CORRECT.
WELL, YES, I'LL HAVE TO GET THE NUMBER BECAUSE I DON'T WANT TO TELL YOU WRONG, BUT I BELIEVE THAT IS THE CASE.
SO THEY'RE EXPENSIVE, BUT THAT'S WHAT THEY CHOSE.
AND WHEN IT'S A GIFT, I THINK IT'S GOOD TO ALLOW THEM TO CHOOSE THAT.
AND I THINK HAVING THE BUOYANCY IS IMPORTANT FOR US.
NOT THAT WE HAVE A LOT OF OPERATIONS ON THE WATER,
[01:40:02]
BUT WE COULD.YOU'RE CERTAINLY AROUND THE WATER.
WE'RE CERTAINLY AROUND THE WATER.
THERE'S ALWAYS OPPORTUNITY TO END UP IN THE WATER.
YES, WE'VE HAD CANINES END UP IN THE WATER.
ALL SORTS OF THINGS, SO YOU NEVER KNOW.
AND THE COMMUNITY POLICE FOUNDATION WAS ACTUALLY FORMED TO BE ABLE TO PAY FOR THINGS THAT THE CITY WAS UNABLE TO FUND. AND IT'S A GROUP OF CITIZENS WHO GO OUT AND RAISE FUNDS SOLELY TO SUPPORT THE POLICE.
THE ULTIMATE GOAL IS TO INCLUDE FIRE. AS WELL BECAUSE WE KNOW THEY HAVE NEEDS.
AND YOU'LL BE HEARING MORE AND MORE ABOUT THIS GROUP BECAUSE I THINK IT IS CRITICAL.
IT'S THE BETTER PARKS FOR POLICE.
BETTER PARKS ONLY FOR THE POLICE.
IT'S AMAZING AND I'M SO APPRECIATIVE.
YOU'RE SEEING THESE ORGANIZATIONS THROUGH MOST OF OUR LARGER POLICE DEPARTMENTS.
YEAH, THIS WAS DESIGNED SIMILAR TO WHAT TOMAN FETIDA STARTED IN HOUSTON.
AND IT IS A 501C3. IT TOOK US ABOUT THREE YEARS TO FORM IT.
I'M HAPPY TO BE A PART OF IT AND SIT ON THE BOARD.
YOU'LL SEE SOME GREAT THINGS THAT ARE COMING OUT OVER THE NEXT YEAR THAT WE'LL BE HELPING FUND THE POLICE WITH.
THANK YOU TO THE GALVESTON COMMUNITY POLICE FOUNDATION.
ANYTHING ELSE, SHERRY? THE 11H. 11H.
NO, YOU'RE WEARING SOME PATAGON.
DAVID SMITH, CITY OF GALVESTON.
OPUS IS AN INDEPENDENT PRICING ORGANIZATION.
WHAT THEY DO IS THEY GO OUT THERE FOR THE REGIONS OF THE UNITED STATES, GULF COAST, OTHER AREAS, AND THEY SET RACK PRICES.
AND WE WHAT WE DO IS THAT THE DAY, IF I ORDER FUEL TODAY, THEN WE WILL GET THE RACK PRICE. AND IF YOU LOOK AT THE SPREADSHEET ON THE BACK, LET'S SAY THE VERY FIRST ONE, PETROLEUM CREDITS WILL ACTUALLY COME DOWN BASICALLY A NICKEL ON THAT RACK PRICE.
AND HOW OFTEN DO YOU HAVE TO? EVERY FUEL DELIVERY.
AND HOW OFTEN IS THAT? WE PROBABLY RECEIVE WITHIN A MONTH BY FOUR TO FIVE TANKERS.
SO YOU CAN'T PREPAY? NO, WE GOT AWAY FROM THAT BACK IN THE DAY BECAUSE THAT DIDN'T WORK OUT VERY WELL.
YOU'RE TRYING TO PRE BUY BEFORE THE PRICES GO UP.
EXACTLY, BUT YOU CAN'T DO THAT.
GALVESTON NEEDS A PETROLEUM RESERVE. YEAH, WE NEED A TANK.
I THINK, MARIE, DID YOU HAVE SOMETHING? NO.
ISLAND TRANSIT, I THINK THAT'S 11I. YES, MA'AM 11I.
I LOVE THE INTERLOCAL AGREEMENT.
CAN YOU JUST GIVE US SOME BULLET POINTS? IT'S AN AGREEMENT THAT HAS EXISTED SINCE I'VE BEEN HERE.
HARRIS COUNTY RIDES PROVIDES ADA DEMAND RESPONSE SERVICES FOR US ON THE ISLAND.
IT IS A COST EFFECTIVE MEASURE FOR US. THEY WOULD BE DOING IT A LOT CHEAPER THAN WE COULD AT THE MOMENT.
IT IS ELIGIBILITY REQUIREMENTS FOR THE CUSTOMERS.
THEY SERVICE THE ENTIRE ISLAND, SO IT DOES VERY, VERY WELL FOR US. RIGHT NOW THE COST PER TRIP IS $24.18 IS WHAT WE'RE AVERAGING NOW. YEAH, WE USED TO HANDLE THIS OURSELVES INTERNALLY AND IT WAS NOT COST EFFECTIVE.
WHEN I LOOKED IT WAS ABOUT WHEN AN AGENCY ITSELF PROVIDES THIS KIND OF SERVICE.
DEMAND RESPONSE IS THE MOST EXPENSIVE.
WHEN AN AGENCY ARE THE SIZE OF GALVESTON, WHEN THEY PROVIDE IT, YOU'RE TYPICALLY IN THAT $42 TO $45 RANGE FOR THE SERVICES.
SO THEY CAN DO IT A LOT CHEAPER.
WHAT DO YOU MEAN BY TRIP? TRIP IS A PASSENGER ON BOARD AND OFF.
[01:45:01]
IT'S A DOOR TO DOOR SERVICE.THEY'RE AVERAGING ABOUT 1,100 TRIPS PER MONTH.
OVERALL, FOR US, WE'RE CRUISING.
WE SHOULD COME UP TO ABOUT 260, 270 TRIPS FOR THE WHOLE YEAR IS WHAT WE'RE APPROACHING FOR. PRIOR TO THAT IN 2008, JUST GIVE EVERYBODY A HEADS UP, IN 2008 GALVESTON WAS DOING OVER A MILLION TRIPS.
YOU KNOW JAMES, COULD I ASK A QUESTION? YES SIR.
SHARON ARE YOU READY? NO GO AHEAD.
I'VE VISITED WITH BRIAN BEFORE ON THIS.
I'VE HAD COMPLAINTS ABOUT THIS THAT ON CRUISE DAYS, YOU CAN'T GET ANYBODY OUT THERE TO PICK YOU UP.
IT IS ON CRUISE DAYS THAT'S ALWAYS BEEN A COMPLAINT TO FALL BACK ON.
AND WE'VE HAD PEOPLE DOWN HERE, WE'VE ACTUALLY, WE EVALUATE THE TRIPS THEMSELVES.
WE'LL SHOW UP ON SITE, ESPECIALLY ON SATURDAYS.
THE DAY BEFORE THE TRIPS THAT VENDORS DOING, WE'LL SHOW UP ON SITE, MAKE SURE THAT THEY'RE WITHIN TIME.
WE EVALUATE THE EQUIPMENT, WE EVALUATE THE DRIVERS, BECAUSE WE'RE REQUIRED TO, THAT'S WHAT WE HAVE TO REPORT TO FTA.
SO WE'LL DO THIS RANDOMLY, BUT WE PICK GENERALLY THOSE CRUISE DAYS, WITH THURSDAYS, SATURDAYS, WE'LL PICK THOSE DAYS SPECIFICALLY.
WE'LL DO IT EARLY MORNING, RIGHT WHEN IT GETS REALLY, REALLY BUSY, THAT 8 TO 10 HOUR, WE'LL HIT THAT REALLY HARD.
ARE THEY? SO THAT DOESN'T SEEM TO BE A REAL CONCERN, IS IT? NO, SIR.
THE VENDOR DOESN'T LIKE, WE HAVE A MOBILITY COORDINATOR WHO'S VERY, VERY GOOD, WORKS DIRECTLY WITH THAT VENDOR AND WITH THE DIFFERENT ORGANIZATIONS WITHIN THE CITY.
THE VENDOR DOES NOT WANT TO RECEIVE A CALL FROM ME SAYING, HEY, YOU GUYS DIDN'T SHOW UP.
AND, MAYOR, I CAN PERSONALLY SPEAK AND SAY, YES, THAT HAS IMPROVED.
BECAUSE I USED TO GET SEVERAL CALLS. I GET A LOT.
I THINK DAVID SMITH'S PERSONAL NUMBER. BUT IT HAS DRAMATICALLY IMPROVED THAT.
AND AS JAMES POINTED OUT, THESE ARE NOT SMALL NUMBERS.
AND IT'S INDICATIVE OF WHY MOST CITIES OUR SIZE DON'T OPERATE SYSTEMS LIKE THIS.
BUT WE DO, AND WE DO A GREAT JOB WITH IT.
THE OTHER LAST ONE, IT'S REALLY BARBARA SANDERSON, 11Q.
REPAIRING THE ROOF AT WRIGHT COUNTY, YEAH.
AND THERE ARE SEVERAL OTHER HEART PIECES.
WHAT ELSE DO YOU HAVE? EXCITED ABOUT THE NEW AT MY COMMUNITY AND DAVID AND COULD YOU INFORM OUR SAME SON PARKS AND RECREATION KIM WHERE THE GIRLS CAN WITH THE DIRECTOR FACILITIES CHARLES THE CONTRADICTIONS ARE ALL RIGHT THE ROUTE PREPARED ROUGHLY JUST A LITTLE HISTORY, THIS ROOF WAS PUT ON ORIGINALLY WHEN THE BUILDING WAS BUILT ABOUT 22 YEARS AGO.
WE DID REPAIRS AFTER HURRICANE IKE BECAUSE THE ROOF PEELED BACK.
AND THEN WE ALSO DID A FEW REPAIRS TO OUR BARRELS.
AND FROM WHAT BUTCH TELLS ME, WITH THESE REPAIRS, WE'LL PROBABLY HAVE ANOTHER FIVE YEARS AND WE'RE GOING TO HAVE TO REPLACE THE ROOF.
SO IT'S JUST WEAR AND TEAR, YOU KNOW.
22 YEARS NOW BECAUSE WE ADVOCATED FOR THAT RIGHT THAT'S ACTUALLY A REALLY GOOD LIFE FOR IT'S MY BIT I MEAN FOR MY BIT RUTH THAT'S REALLY A GOOD LIFE FOR THAT SO WELL WE'RE HAPPY THAT WE MADE IT THAT LONG AND WE DO MADE WE DO A LOT OF MAINTENANCE ON THESE TO KEEP THEM TO LENGTHEN THEIR LIVES ALL RIGHT I TELL ANYBODY IF THERE'S SOMETHING'S GOT A USEFUL LIFE FOR 10 YEARS THAT'S 20 IN GALVESTON WE'LL GET 20 OUT OF IT AND 11S, THE PLAYGROUND EQUIPMENT.
CONSIDERING THAT YOU COULD BUILD A NICE SMALL HOUSE FOR THAT AMOUNT, THAT'S VERY EXCITING, YES.
YOU KNOW, EVERYTHING GOES UP IN PRICE, BUT, YOU KNOW, IT MEETS ALL THE STANDARDS.
AND I THINK IT'S GOING TO ADD A NICE QUALITY PARK OUT IN THAT WEST END AREA.
BECAUSE WITH US HAVING PERMANENT RESTROOMS, AND THE EQUIPMENT, IT WILL ATTRACT SOME OTHER, MY MILLION DOLLAR RESTROOM.
NOTHING COMPLIMENTS A MILLION DOLLAR RESTROOM LIKE A $400,000 PLAYGROUND.
WE'RE TRYING TO GET THAT RIGHT.
[01:50:01]
AND WE ALSO WILL BE BRINGING FORWARD A DONATION FROM THE LIONS CLUB THROUGH BETTER PARKS FOR GALVESTON FOR SOME EXTRA BENCHES OUT OF THE SOCCER COMPLEX.ANY SOURCE FOR THIS ONE? 391,000.
YEAH, THAT'S PART PROJECT COST.
WE KIND OF WAITED UNTIL WE GOT CLOSED OUT ON THAT PROJECT SOMEWHAT SO WE KNOW HOW MUCH WE HAD LEFT.
AND I GUESS, SORRY, CHAIRMAN, THIS IS ABOUT MORE PART EQUIPMENT. SO I GUESS THE PARKS THAT WE HAVE NOW UNDER OUR JURISDICTION, SEAWOLF, DELANERA, WILL SOME OF THAT BE PUT INTO IMPROVEMENTS FOR OTHER PARKS AND THOSE SORTS OF THINGS? I GUESS SOME OF THE REVENUE OVER EXPENSES.
UNTIL WE HAVE THOSE PARKS FOR A YEAR, BUT YOU HAVE TO REMEMBER SOME OF THAT FUNDING FROM DELANERA IS BEACH USER FEES.
SO WE HAVE TO BE REAL CAREFUL.
BUT TO ANSWER YOUR QUESTION, WE'RE GOING TO GET A YEAR UNDER OUR BELT AND SEE EXACTLY WHAT IT IS AND HOW STABLE IT IS.
WE'RE ALSO INVESTING QUITE A BIT OF MONEY BACK IN THOSE PARKS ON SOME DEFERRED MAINTENANCE RIGHT NOW TO MAKE SURE.
WELL, WE JUST REDID THE PLAYGROUND.
WE DIDN'T REDO IT, BUT WE HAD REPAIRS DONE TO THE PLAYGROUND EQUIPMENT AT SEAWOLF ABOUT APPROXIMATELY, I BELIEVE IT WAS LIKE, I THINK IT CAME BEFORE COUNCIL.
I KNOW IT DID REPAIRS TO THE TO THE PLAYGROUND EQUIPMENT.
IT WAS NEVER TOUCHED, THE FALL ZONE.
WE DUMPED SO MANY LOADS OF MULCH OUT THERE, AND IN THE FUTURE WE WILL DO AWAY WITH MULCH AND GO BACK TO THE POUR AND PLAY.
IT LASTS LONGER, DOESN'T WASH AWAY, BUT THEY LITERALLY HAD THAT MUCH.
THERE WAS NO FALL ZONE OUT THERE AT ALL.
THIS FIRST YEAR WE'RE TAKING IN REVENUE, BUT WE'RE ALSO REINVESTING IN THOSE PARKS, BRINGING THEM UP.
AFTER THE FIRST YEAR WE'LL BE ABLE TO ACTUALLY FEED BACK INTO OUR PARK SYSTEM, WHICH WAS THE GOOD THING.
VISUAL REPRESENTATION OF WHAT WE'RE TRYING TO DO.
WE JUST DON'T WANT TO OVERSPEND AT ALL.
AND WE ALSO HAD TO FIX THE LIGHTING SYSTEM OUT OF THE PARKS.
THERE WAS NO LIGHTS IN THE PARKING LOT.
AND WHILE SEAWOLF GENERATES QUITE A BIT OF MONEY, IT'S NOT A CHEAP PARK TO MAINTAIN WITH THE PIER AND EVERYTHING.
SINCE WE BROUGHT UP A FEW DIFFERENT PARKS, I WANTED TO MAKE SURE WE PUT JONES PARK ON THE NEXT AGENDA.
ACTUALLY, WE DO HAVE, WE HAVE A GRANT, TESSA, WE HAVE A GRANT THAT WE'RE WORKING ON NOW FOR JONES PARK TO SECURE AND TO MOVE FORWARD.
THERE'S A LOT OF CIVIL WORK THAT HAS TO HAPPEN FIRST WITH JONES.
IF YOU'D LIKE TO PUT IT ON WORKSHOP, NO PROBLEM.
JANELLE, LET'S PUT THAT ON THERE FOR JONES PARK, PLEASE, MA'AM.
AND TO INCLUDE A COORDINATED REPORT WITH VISION GALVESTON.
SHARON, ANYTHING ELSE? VERY GOOD.
MARIE? I HAD 11M AT THE EXPANSION OF THE BEACH SURVEYS, BUT I DON'T SEE KYLE HERE.
I'M GOING TO GET THE AMERICAN.
TESSARO BLESKY, DISASTER RECOVERY GRANTS.
CAN YOU EXPAND ON IT, WHAT WE'RE INCREASING? SO EVERY YEAR WE HAVE THE ANNUAL, BEACH ANNUAL SURVEYS THAT ARE DONE, THE WADING DEPTH AND THE DEPTH OF CLOSURE AND THIS IS ON OUR ENGINEERED BEACHES, AND THEN THE WADING DEPTHS GO ALL THE WAY DOWN THE ISLAND.
SO WITH THE CONSTRUCTION THAT WAS COMPLETED ON THAT CAP 204 PROJECT, WE'RE GOING TO ADD THAT TO THE ANNUAL SURVEYS SO THAT WE HAVE THE SURVEYS THAT WILL GIVE US THE INFORMATION WE NEED TO MAKE THAT BECOME AN ENGINEERED BEACH SO THAT IT CAN BECOME ELIGIBLE FOR FEMA IF WE HAVE ANOTHER STORM. LAST YEAR THE IDC DID ALREADY BUDGET THIS, BUT WE NEEDED TO GO BACK IN AND AMEND THE CONTRACT TO ADD THE SCOPE OF WORK TO INCLUDE THE CAP 204 SECTION.
SO THAT MONEY FOR THIS YEAR IS ALREADY BUDGETED.
AND I JUST WANTED TO POINT OUT TO EVERYBODY WHY THIS IS SO IMPORTANT. WITHOUT DOING THESE SURVEYS, WHEN THERE IS A STORM, WE CANNOT DO A FEMA CLAIM BECAUSE ONCE YOU HAVE AN ENGINEERED BEACH, IT CAN BE COVERED BY FEMA AND OTHER GOVERNMENT ENTITIES TO REPLACE IT.
SO I'M VERY HAPPY TO SEE THIS HAPPEN.
IT'S A QUANTIFICATION OF SAND.
BUT WE HAVE ACTUALLY HAD ENGINEERED BEACHES ON THE ISLAND THAT WEREN'T SURVEYED.
SO THEREFORE WE LOST THE OPPORTUNITY TO GO
[01:55:02]
AFTER THE MONIES FOR REPLACING IT.THERE'S NO WAY TO QUANTIFY THE SAND THAT WAS LOST.
AND BEING THAT WE'VE BEEN PRACTICING.
NO, I MEAN, I ONLY WENT TO A&M AND WE'RE STILL GOING THROUGH FROM HURRICANE BERYL, THE DELANERA, THE BAYS BEACH, AND THOSE AREAS AND FEMA IS GETTING MORE AND MORE TECHNICAL.
NO, YOU DON'T HAVE ENOUGH INFORMATION HERE.
NOW WE WANT YOU TO TELL US X, Y, AND Z.
I WILL SAY, THOUGH, THAT WORKING WITH CHERYL AT THE PARK BOARD AND APTUM, ON THE CURRENT CLAIM FOR HURRICANE BERYL, WE'VE BEEN ABLE TO MAKE A CASE FOR DECREASING THAT DEPTH OF CLOSURE FROM 24 FEET OUT TO 15 FEET. AND THAT'S WHERE THE SAND, YOU KNOW, THE MOVEMENT AND EVERYTHING IS CRITICAL, AND WE DO BETTER AT THAT 15 FOOT THAN THE 24, SO WE CAN SHOW MORE LOSS THERE.
SO THEY HAVE ACCEPTED THAT TECHNICAL SPECIFICATION AND AGREED TO IT.
SO THAT'S BEEN A BIG WIN FOR US THIS YEAR.
BUT I KNOW THAT THERE'S ANOTHER KEFRA PROJECT COMING IN THE NEXT YEAR OR SO, SO WE WILL COME BACK AND WE WILL ADD THAT SCOPE.
HOPEFULLY BY THE END OF THE YEAR WE'LL HAVE AN IDEA WHERE WE CAN BUDGET THAT WITH IDC AS WELL.
AND I THINK THAT'S ALL VERY EXCITING BECAUSE FOR YEARS WE DIDN'T SURVEY OUR BEACHES AND IT IS SUCH A CRITICAL PART OF REPLACING THEM.
THE OTHER PART IS ALL THE ONES THAT AREN'T TOO DEPTH OF CLOSURE.
THE FACT THAT WE ARE SURVEYING THOSE BEACHES, IT ALLOWS US TO ESTABLISH WHAT ARE NOW STABILIZED BEACHES THAT FOR YEARS WERE CALLED ERODING BEACHES, SAY ON THE FAR WEST END, WHICH MAKES A HUGE DIFFERENCE IN PROPERTY VALUE AND SO FORTH.
AND EAST END HAS ALWAYS BEEN FORTUNATE TO BE.
STABLE BEACHES OR CREATING BEACHES, BUT WE NOW HAVE BEACHES THAT ARE DESIGNATED STABLE ON THE WEST END, FAR WEST END, BUT THANK YOU.
I THINK A LOT OF THAT IS GOING TO HELP WITH THAT SEDIMENT MANAGEMENT PLAN COMING IN AS WELL, BECAUSE THAT'S A VERY IMPORTANT COMPONENT.
ON 11T WHERE WE WILL BE WAIVING THE FEES AT SEAWOLF PARK FOR THE FLEET, CAN SOMEONE EXPAND ON THIS? YEAH, THIS HAD BEEN SCHEDULED EARLIER AND THEY HAD TO CANCEL IT AND MOVE IT TO THIS STATE.
SHOULD WE APPROVE THIS BACK IN THE FALL? YES.
BECAUSE OF THE SHUTDOWN? SHUT DOWN.
SO NOW WE'RE BACK ON THE MAP AGAIN.
IT WILL BE A BEAUTIFUL EXPERIENCE AND THE DATES OF IT ARE NOW.
YES, THE 15TH I BELIEVE IT IS.
AND ACTUALLY FOLKS DON'T EVEN HAVE TO DRIVE OUT TO SEAWOOD PARK.
THEY CAN GO DOWN TO BODDICKER OR UP ON THE EAST END OF THE SEAWALL. SO THERE'S MULTIPLE PLACES YOU CAN WATCH IT.
THEY WILL HAVE SOME DIGNITARIES OUT AT SEAWOLF PARK.
AND HOW ARE WE PROMOTING THIS? WELL, ACTUALLY IT'S A NAVY PROMOTION, BUT WE WILL PUT IT OUT ON OUR FACEBOOK PAGE AND ON CHANNEL 16 AND OUR WEBSITE.
HAVE YOU COORDINATED WITH THE PARK FORWARDER ON ANY OF THIS, THAT THEY MAY BE ABLE TO HELP GET THE WORD OUT? THAT'S KIND OF UP TO THE NAVY. IT'S THEIR EVENT, BUT WE CAN ALSO LET THEM KNOW.
WELL, WE CAN SPREAD THE WORD THROUGH THE WORKFORCE THAT WE ARE WAIVING THE FEES.
WE CAN GET IT OUT ON THEIR SOCIAL MEDIA PLATFORMS AND SO FORTH. NOT A PROBLEM.
WE WORK WITH THEM ALL THE TIME.
I MENTIONED IT TO THEM AT THIS MEETING.
ANYTHING ELSE? AND THEN ALL MY OTHER ARE ACTUALLY AGENDA ITEMS ON THE WORKSHOP.
BUT I DO SUGGEST WE TAKE A BREAK.
THANK YOU FOR READING MY BLACK.
BO, YOU HAD A VERY RANCID COVERAGE.
ARE THEY GOOD? NO, THEY'RE VERY GOOD.
WE'VE BEEN IN WORKSHOP FOR ABOUT TWO HOURS.
OUR NEXT ITEM IS GOING TO BE 4I.
FOR YOU? OH, COME ON, I'M BRIAN.
[4.C Presentation by Weaver, the City’s external auditor, and discussion of the FY 2025 Annual Comprehensive Financial Report (C. Ludanyi - 20 min)]
[02:00:03]
WE HAVE TAKEN A SHORT BREAK, AND WE ARE NOW MOVING ON WITH THE WORKSHOP AGENDA.COULD YOU READ ITEM 4C? ITEM 4C.
THE PRESENTATION BY WEAVER, THE CITY'S EXTERNAL AUDITOR, AND DISCUSSION OF THE FI 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT.
THIS ITEM IS 6B, COUNCIL ON OUR AGENDA TONIGHT.
THERE IS NO VOTE NEEDED, IT'S JUST A PRESENTATION.
AND I'M GOING TO TURN IT OVER TO OUR FINANCE DIRECTOR, SHEILA BEDANYU, TO INTRODUCE THIS.
JOHN DEBORO IS FROM WEAVER AND HE WILL BE GOING THROUGH HIS PRESENTATION ON OUR FY25 ANNUAL FISCAL YEAR AUDIT.
WE ARE EXCITED ABOUT HOW THE AUDIT TURNED OUT THIS YEAR.
WE HAVE ALL WORKED REALLY HARD.
IN FACT, THE TEAM IS PROBABLY STILL WORKING HARD UPSTAIRS.
IT HAS BEEN A HEAVY LIFT WITH THE TRANSITION FROM BANNER TO WORKDAY.
THERE HAS BEEN A LOT OF EXTRA WORK AND SO BOTH THE TEAM FROM WEAVER AS WELL AS TAMMY JACOBS AND HER ENTIRE ACCOUNTING GROUP UPSTAIRS HAVE BEEN WONDERFUL AND WE ARE VERY HAPPY WITH THE RESULT OF THE AUDIT THAT WE'RE HERE TO PRESENT TO YOU TODAY.
AND THANK YOU, MR. MAYOR AND THE REST OF THE COUNCIL.
YES, BOTH SIDES ARE WORKING VERY HARD AND IT'S BEEN A VERY SUCCESSFUL AUDIT.
WE MET WITH THE FFAC ON MONDAY AND WENT THROUGH THE RESULTS IN MORE DETAIL, SO I'LL KEEP THIS BRIEF.
I SERVED AS THE ENGAGEMENT PARTNER AGAIN THIS YEAR THIS IS THE SECOND YEAR THAT WE'VE PERFORMED THE CITY'S AUDIT AND STEVE SMITH WAS THE MANAGER ON THE ENGAGEMENT AND TO GET TO THE POINT WE ARE GOING TO BE ISSUING AN UNMODIFIED OPINION ON THE CITY'S FINANCIAL STATEMENTS AND THAT JUST MEANS IT'S A CLEAN OPINION AND IT MEANS THAT WE FEEL THAT THE CITY'S FINANCIAL STATEMENTS ARE FAIRLY PRESENTED IN ALL MATERIAL RESPECTS AND ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES THANK YOU.
AND OUR REPORT ON INTERNAL CONTROL OF A FINANCIAL REPORTING AND COMPLIANCE WILL SHOW THAT THERE WERE NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL IDENTIFIED AND NO INSTANCES OF ANY NON COMPLIANCE THAT WAS MATERIAL TO THE FINANCIAL STATEMENTS.
THIS NEXT SLIDE PERTAINS TO THE CITY'S FEDERAL AND STATE FINANCIAL ASSISTANCE PROGRAMS, OTHERWISE KNOWN AS THE SINGLE AUDIT AND IN THAT REPORT WE WILL ALSO BE ISSUING AN UNMODIFIED OPINION AND IN THIS CASE IT MEANS THAT WE FEEL THAT THE CITY COMPLIED IN ALL MATERIAL RESPECTS WITH THE DIRECT AND MATERIAL COMPLIANCE REQUIREMENTS OF THE MAJOR FEDERAL AND STATE PROGRAMS THAT ARE LISTED BELOW SO FOR THE FEDERAL SINGLE AUDIT THIS YEAR WE HAD TO EXAMINE THE FEDERAL TRANSIT CLUSTER AND THE FEMUR DISASTER GRANTS PUBLIC ASSISTANCE PROGRAM AND FOR THE STATE SINGLE AUDIT, THERE WAS ONLY ONE MAJOR PROGRAM THAT WE HAD TO LOOK AT, THE SEPRA PROJECT, NUMBER 1753, COASTAL EROSION PROGRAM AND AGAIN, IN THIS SITUATION WITH THE FEDERAL AND STATE FINANCIAL ASSISTANCE, THERE WERE NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OF A COMPLIANCE THAT WERE NOTED DURING OUR AUDIT PROCEDURE, NO OTHER FINDINGS TECHNIQUES.
CLEAN REPORT ALL THE WAY AROUND. I WILL JUST GO THROUGH QUICKLY SOME OF OUR AUDITORS COMMUNICATIONS, THE REQUIRED COMMUNICATIONS, AND THESE FIRST THREE SLIDES GO THROUGH OUR RESPONSIBILITIES UNDER THE DIFFERENT AUDIT STANDARDS. UNDER GENERALLY ACCEPTED AUDITING STANDARDS, WE'RE REQUIRED TO EXPRESS AN OPINION ON THE CITY'S AUDIT BASED ON OUR AUDIT PROCEDURES AND AS I MENTIONED WE'RE GOING TO BE ISSUING AN UNMODIFIED OR CLEAN OPINION. THE GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS REQUIRE, IN ADDITION, FOR US TO ISSUE A WRITTEN REPORT ON A CONSIDERATION OF THE INTERNAL CONTROLS OVER FINANCIAL REPORTING AND COMPLIANCE AND AGAIN, THERE WERE NO FINDINGS THERE AND THEN FINALLY UNDER THE STANDARDS FOR THE FEDERAL AND STATE FINANCIAL ASSISTANCE PROGRAM, IT'S OTHERWISE KNOWN AS UNIFORM GUIDANCE FOR THE FEDERAL AND TEXAS GRANTS MANAGEMENT STANDARDS FOR THE STATE.
RESPONSIBILITIES ARE TO EXPRESS AN OPINION ON THE CITY'S COMPLIANCE WITH THE DIRECTING MATERIAL COMPLIANCE REQUIREMENTS OF THE MAJOR PROGRAMS AND I'M GLAD TO REPORT THAT THERE WERE NO FINDINGS AND WE ARE GOING TO ISSUE UNMODIFIED OR CLEAN OPINIONS ON THE COMPLIANCE.
THE CITY DID NOT HAVE ANY NEW ACCOUNTING STANDARDS THAT HAD TO BE IMPLEMENTED THIS PAST YEAR THAT WERE THAT HAD ANY EFFECT ON THE FINANCIAL STATEMENTS AND I JUST NOTED ON THE SLIDE THAT THERE WERE A COUPLE OF CHANGES WITHIN THE REPORTING ENTITY THIS YEAR, AND IT WAS JUST BECAUSE THERE WERE A COUPLE OF FUNDS LAST YEAR THAT MET THE CRITERIA FOR REPORTING AS A MAJOR FUND, IN OTHER WORDS, A SEPARATE
[02:05:03]
COLUMN IN THE FRONT OF THE REPORT, AND THEY NO LONGER MET THE CRITERIA, SO THEY WERE MOVED TO OTHER PLACES IN THE REPORT.THERE WERE NO INSTANCES OF ANY MATERIAL ERRORS OR REGULAR PARTIES OR ANY INSTANCES OF ANY FRAUD, NO MATERIAL WEAKNESSES. WE LOOK AT ESTIMATES THAT ARE EMBODIED IN THE FINANCIAL STATEMENTS.
THERE ARE A LOT OF ESTIMATES SUCH AS THE INCURRED BUT NOT REPORTED LIABILITY FOR WORKERS' COMPENSATION AND EMPLOYEE HEALTH, ALSO THE NET PENSION AND OPEB LIABILITIES.
AND WE LOOK AT THE UNDERLYING ASSUMPTIONS THAT MAKE UP THOSE.
LIABILITIES AND FELT THAT THEY WERE REASONABLE IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE. REALLY, WE ENCOUNTERED NO DIFFICULTIES IN CONDUCTING OUR AUDIT, AND THAT'S A TRIBUTE TO SHEILA AND THE REST OF THE FINANCE STAFF FOR DOING A GREAT JOB AND PROVIDING US WITH ALL THE INFORMATION THAT WE NEEDED.
WE WILL BE HAVING THEM PRESENT THE MANAGEMENT REPRESENTATION LETTER THAT IS SENT TO US AT THE END OF THE AUDIT PRIOR TO ISSUING OUR.
THERE WERE NO INSTANCES OF ANY MANAGEMENT CONSULTATIONS, NO INDEPENDENCE ISSUES NOTED.
WE DID PERFORM SOME NON ATTEST SERVICES FOR THE CITY, PRIMARILY WITH ASSISTANCE WITH THE PREPARATION OF THE FINANCIAL REPORTS.
BUT ALL OF THE NEEDED SAFEGUARDS WERE APPLIED TO MAKE SURE THAT WE MAINTAINED INDEPENDENCE.
IN THE AREA OF AUDIT ADJUSTMENTS, WE'RE REQUIRED TO COMMUNICATE TO YOU IF THERE WERE ANY MATERIAL CORRECTED OR UNCORRECTED MISSTATEMENTS, AND I'M HAPPY TO REPORT THAT THERE WERE NEITHER.
THAT, IN A NUTSHELL, IS THE PRESENTATION.
I'D LIKE TO BE THE BEARER OF GOOD NEWS.
I'D BE HAPPY TO ANSWER ANY QUESTIONS IF YOU HAVE ANY.
ANY QUESTIONS? COUNCIL? CAN WE SAY THANK YOU? THANK YOU.
YEAH, THE ACCOUNTING TEAM WORKED VERY, VERY HARD OVER THE LAST YEAR.
AND JUST A LITTLE BACKGROUND, WEAVER IS ONE OF THE LARGEST MIDSIZE FIRMS, I THINK, NATIONWIDE RIGHT NOW.
YEAH, WE'RE THE 26TH LARGEST FIRM. YEAH, AND THAT'S AFTER THE BIG FOUR.
THEY'RE THE BIGGEST MIDSIZE FIRM.
THEY'RE ONE OF THE LARGEST MIDSIZE FIRMS, BUT THEY DO EXCELLENT WORK.
THEY'RE KIND OF RENOWNED FOR THIS TYPE OF WORK.
SO WE'RE BLESSED TO HAVE A FIRM THIS BIG THAT WANTS TO CONSIDER DOING WORK FOR GALVESTON AS WELL.
WAS THE MOST OF THE WORKDAY STUFF, TRANSFER STUFF, WAS THAT HARDER ON YOU GUYS, OR WAS THAT ALSO A CHALLENGE FOR WEAVER AS WELL, FOR US THIS YEAR? YEAH, SO ONLY TIMING IMPACTED THEM. RIGHT, SO MOST OF THE SOFTWARE ACTIVITIES THIS YEAR WERE ON OUR END, BUT OUR NEED TO DO THOSE DELAYED TIMELINE. I MEAN, IT'S BEEN DELAYING TIMELINE FOR A YEAR NOW, RIGHT? NEXT YEAR, HOWEVER, SO IT SHOULD BE MUCH BETTER.
WELL, WE HAVE TO REMAP EVERYTHING, BECAUSE THIS YEAR'S AUDIT IS BASED ON EVERYTHING IN BANNER.
WE DID EVERYTHING IN BANNER THROUGH THE END OF SEPTEMBER, RIGHT? AND SO IT'S ALL THE OLD MAPPING. AND THEY'RE GOING TO BE HELPING US ASSEMBLE NEXT YEAR AS WELL, BUT IT'S ALL NEW MAPPING.
AND SO WE'LL BE AUDITING OUT OF A WHOLE NEW SYSTEM, SO THAT'LL BE THE CHALLENGE NEXT YEAR. BUT, YOU KNOW, IF THERE'S NOT A CHALLENGE YOU NEED A STEP FOR A STEPPER? THANKS.
THE LAST ONE WAS, ARE OTHER MUNICIPALITIES, BECAUSE OF THE MOST RECENT CHANGE IN LEGISLATION ABOUT GETTING YOUR ACT FIRST REPORTED AND FILING WITH THE CITY SECRETARY'S OFFICE, IS THAT MOVING UP TIMELINES FOR THESE SORTS OF THINGS? I'M SORRY, I MISSED THE FIRST PART. FOR THE NEW LAWS THAT TOOK INTO EFFECT WITH THE 89TH LEGISLATURE REGARDING MUNICIPALITIES AUDITING, FILING WITH THE CITY SECRETARY'S OFFICE, I GUESS IT GOES TO THE STATE COMPTROLLER'S OFFICE, ET CETERA, ET CETERA.
IS THAT PUSHING UP TIMELINES ON SOME OF THESE THINGS, OR IS IT CRUNCHING DEADLINES, OR JUST FROM YOUR EXPERTISE? PROBABLY A LITTLE BIT OF BOTH, BUT I TELL YOU IT'S A GOOD TOPIC, ACTUALLY, FOR DISCUSSION BECAUSE IT'S CAUSING A LOT OF PHONE TRAFFIC TO OUR OFFICE BECAUSE WE'RE GETTING CONTACTED BY A LOT OF LITTLE CITIES THROUGHOUT THE STATE OF TEXAS WHO ARE TWO AND THREE YEARS BEHIND ON THEIR AUDITS AND ARE SUDDENLY PANICKING.
I GOT A CALL FROM SOMEBODY A MONTH AGO AND ASKED ME IF I COULD DO THREE YEARS OF THEIR AUDITS BETWEEN APRIL AND JUNE OF THIS YEAR AND I SAID I'M SORRY THERE'S NO WAY I COULD DO ONE WITHIN THAT TIMEFRAME RIGHT NOW.
[02:10:02]
TO MAKE A LONG STORY OUT OF IT, BUT I WAS AT A LUNCHEON LAST WEEK WHERE A SPEAKER FROM TML TALKED ABOUT THAT TOPIC, AND I THINK THAT THERE'S A LOT OF REALIZATION THAT THEY MAY HAVE. CHANGE THAT HOUSE BILL BECAUSE THERE'S NOT ENOUGH CPAS IN THE STATE OF TEXAS TO DO ALL THE AUDITS THAT ARE NECESSARY FOR SOME OF THESE SMALLER CITIES.SO THEY MAY HAVE TO CONSIDER CHANGING THE METRICS.
IT'S DELAYING, NOT DELAYING, BUT MAKING IT AN ADDITIONAL DEADLINE OF SAY 210 OR 240 DAYS OR MAYBE PUTTING SOME CRITERIA ON SMALLER CITIES.
BELOW A CERTAIN POPULATION OR BELOW A CERTAIN BUDGETED REVENUES THAT MAYBE THEY DON'T HAVE. IT'S TOUGH TO BE A SMALL CITY.
LIKE IN THE CORPORATE WORLD WHERE ALL THE LITTLE GUYS, THEY CAN'T EXIST ANYMORE.
IT'S ALMOST GOING TO BE THAT WAY WITH CITIES BEFORE LONG.
THE BEST MID SIZED LARGE FIRM THAT WE GOT.
WHEN I FIRST STARTED WITH THE FIRM 22 YEARS AGO, WE ONLY HAD DALLAS AND FORT WORTH OFFICE AND ABOUT 150 EMPLOYEES.
NOW WE'RE COAST TO COAST WITH PROBABLY OVER 2,000 EMPLOYEES.
YOU NEED MORE CPAS IS WHAT YOU'RE SAYING. WE DO.
UNFORTUNATELY, THAT'S ANOTHER TOPIC FOR DISCUSSION.
GETTING INTO THE CPA PROFESSION.
SO THERE'S REALLY A DEMAND FOR THEY'D RATHER DAY TRADE.
BRIAN, YOU GOT A CPA COMING OUT OF SCHOOL.
[4.I Discussion of the Galveston Housing Finance Corporation and Galveston Property Finance Authority Ordinance for the Purchase and Development of Property (B. Brown/C. Brown -20 min)]
TO TELL YOU, BUT I THINK DELOITTE'S ALREADY GOT HER, SO OKAY. THANK YOU VERY MUCH.WATCH OUT FOR NEXT YEAR'S ONLINE. YEAH, IF WE HAVE TO BRING IN DELOITTE, I THINK WE WILL.
4I, DISCUSSION OF THE GALVESTON HOUSING FINANCE CORPORATION AND GALVESTON PROPERTY FINANCE AUTHORITY, ORDINANCE AND THE PURCHASE AND DEVELOPMENT OF PROPERTY.
BOB, IF YOU'LL INTRODUCE THE INDIVIDUALS THAT ARE HERE.
SO WHAT THIS IS ABOUT IS TO ASSIST IN CARRYING OUT THE MISSION THAT MAKES ISLAND HOUSING MORE AFFORDABLE FOR MIDDLE INCOME FAMILIES WHO ARE GOING TO WORK.
WE'RE BRINGING FOR COUNCIL'S APPROVAL.
THIS IS A DISCUSSION ON APPROVAL.
A TOOL THAT WILL HELP US ACHIEVE THAT, WHICH IS AUTHORIZATION TO PURCHASE PROPERTY WITHIN CERTAIN LIMITS WITHOUT COMING TO COUNCIL EACH TIME FOR APPROVAL.
WE RECENTLY MISSED AN OPPORTUNITY TO PURCHASE AT AUCTION A PROPERTY VALUED AT $60,000 THAT WENT FOR THE MINIMUM BID OF $30,000. SO IN TODAY'S UNIVERSE, YOU HAVE TO TAKE ADVANTAGE QUICKLY.
YOU HAVE TO JUMP ON THESE DEALS QUICKLY TO TAKE ADVANTAGE OF GOOD PROPERTY DEALS.
WHEN YOU DO, IT SAVES THE TAXPAYER MONEY, IT MAKES IT EASIER TO IMPROVE AND OFFER THE PROPERTY TO OUR TARGET HOMEOWNERS, AND THE IMPROVED PROPERTIES, OF COURSE, PROVIDE INCREASED TAX BASE.
SO IN THIS PROPOSAL, WE BUILT IN SEVERAL INTERNAL PURCHASE CONTROL AND DECISION MAKING DOCUMENTS FOR THE PROGRAM, AND THE GHFC HAS BEEN WORKING ON THIS WITH CITY STAFF PROBABLY FOR MONTHS NOW.
SO HERE IS MARK STASTNY, THE VICE CHAIR, JESSICA RANDALL, AND WE ALSO HAVE MICHELLE AND ROBERT.
WE'RE ACTUALLY AN INDEPENDENT BOARD, SO WE ATTORNEY AND ALWAYS HAVE DO THE EXISTENCE.
BUT I THINK BOB SUMMARIZED IT WELL. I JUST WANT TO CLARIFY THAT WE'RE NOT GOING OUT AND BUYING A LOT OF PROPERTIES.
AND THE EXAMPLE PROPERTY THAT BOB REFERRED TO WAS, IT WAS DIRECTLY ACROSS THE STREET FROM L.A. MORGAN.
ELEMENTARY SCHOOL AND SO IN OUR INTENTION WAS IF WE HAD BEEN ABLE TO PURCHASE THAT PROPERTY JUST TO COMBINE IT GET AN MOU WITH BILL GALVESTON HAVE THEM MANAGE IT HAVE THEM BUILD IT AND WE WOULD PROVIDE THE CONDUIT FOR ACQUIRING THE PROPERTY AND THEN TRANSFERRING IT OR SELLING IT INTO THEIR UNIVERSE SO IT'S JUST A MECHANISM WE WANT TO FUNCTION AS THE PROPERTY FINANCE AUTHORITY WE WANT TO FUNCTION AS THAT MECHANISM BUT WE ALSO PUT THOSE GUARDRAILS IN PLACE TO MAKE YOU GUYS COMFORTABLE WITH OUR GAME BEING GOOD FIDUCIARY, HAVE GOOD FIDUCIARY RESPONSIBILITIES OF MONEY WE'RE ENTRUSTED WITH.
I THINK THE BEAUTIFUL THING ABOUT OUR BOARD IS THERE'S A NICE BALANCE OF GO GETTERS, OF LET'S DO THIS WORK, WE'RE NOT HERE FOR NO REASON, BUT AT THE SAME TIME, DUE DILIGENCE IS IMPORTANT.
SO WE PUT TOGETHER SOME DOCUMENTS THAT COINCIDE WITH THE ORDER THAT WE BROUGHT AND 1 IS A PROPERTY PURCHASE SUMMARY. SO AGAIN, IT'S JUST ALL THOSE DUE DILIGENCE IS THE THINGS THAT YOU WOULD HAVE TO LOOK INTO WHEN YOU'RE PURCHASING A PROPERTY FOR ANYONE. RIGHT.
BUT THEY ALSO THINGS THAT ARE SPECIFIC TO OUR BOARD AND OUR MISSION, AND THEN WE WILL BE PUTTING TOGETHER A, AND WE'LL HAVE A 1 PAGE SUMMARY FOR THAT.
THAT WILL INCLUDE THE MAXIMUM PURCHASE PRICE FOR.
[02:15:02]
A PROPERTY THAT WE'RE LOOKING AT, AN AGREEMENT ON THAT MAX TOTAL EXPENDITURE, FINANCIAL TRANSFER MECHANISMS FOR MAKING DEPOSITS AND PAYMENTS, SPECIFICALLY FOR THINGS LIKE OUR IT'S DIFFERENT THAN JUST GOING OUT AND SEEING A PIECE OF PROPERTY AND MAKING AN OFFER, RIGHT? ALONG WITH ALL THE OTHER MECHANISMS THAT WE CAN USE.UNDERSTANDING HOW TO CONDUCT A TAX AND LIEN LIABILITY SEARCH ACROSS THE BOARD SO WE ALL HAVE AT LEAST, AT THE VERY LEAST, BASIC KNOWLEDGE.
AND THEN FORMING SOME KIND OF FORMAL AGREEMENT WITH A LOCAL TITLE COMPANY SO THAT WE MAKE SURE THAT THE PROPERTIES THAT WE ARE PURCHASING, WE HAVE THE CORRECT TITLE AND WE'RE NOT GETTING CAUGHT UP IN FINANCIAL WELLNESS.
AND THEN UNDERSTANDING THE TIMELINES, REDEMPTION PERIODS FOR THOSE PROPERTIES IF THEY'RE FORECLOSURES, AND THEN OF COURSE ANY LOCAL, STATE, OR FEDERAL LAWS THAT WE HAVE TO ABIDE BY OR ANYTHING OF THAT NATURE.
WE'RE ALSO GOING TO AUTHORIZE TWO OF OUR BOARD MEMBERS AS OUR REPRESENTATIVE WITH A LIMIT AND WITH THE AUTHORIZATION TO MAKE BIDS ON PROPERTIES.
AND SO WE'LL SET THE LIMIT ON WHAT THEY CAN OFFER, AND THEN THERE'LL BE A, WITHIN THE RESOLUTION IT'S INCLUDED THAT YOUR REPRESENTATIVE ON OUR BOARD, BOB BROWN CURRENTLY, WILL HAVE A VERBAL, THEY'LL HAVE TO CONTACT HIM VERBALLY AND SAY, DO YOU APPROVE OF THIS? AND THEY'LL USE THIS DOCUMENTATION THAT JESSICA REFERRED TO, AS WELL AS A $25 PER SQUARE FOOT OF TOTAL COST PER LAND AREA VALUE.
IF IT GOES OVER THAT, WOULD THEY NEED TO BE VERY CLEAR WITH BOB AND SAY THIS IS WHAT WE NEED APPROVED.
AND SO WE'RE PUTTING IN GUARDRAILS TO MAKE SURE THAT WE'RE NOT ONLY SOPS, BUT ALSO FUNCTIONALLY WE ARE MANAGING SO WE CAN MOVE QUICKLY IF WE NEED TO, BUT ALSO DELIBERATELY AND MAKE SURE WE DON'T MAKE TOO MANY MISTAKES.
SO WHEN YOU'RE LOOKING AT THE PURCHASING OF PROPERTY, IT'S TO RESELL IT, RIGHT, OR TO PROVIDE IT.
ARE YOU DOING ANY KIND OF PROGRAM? BECAUSE WE ALL KNOW THE BARRIER ON THE ISLAND ISN'T PROPERTY, BECAUSE RIGHT NOW THERE ARE 250 HOUSES UNDER 300,000 FOR SALE. THE BARRIER IS WINDSTORM INSURANCE.
THAT'S WHAT SETS US APART FROM TEXAS CITY, LEAGUE CITY, WHATNOT IS PRIMARILY THE PRICE OF OUR INSURANCE.
ARE YOU COMING UP WITH ANY PLAN ON HOW YOU MIGHT SUBSIDIZE OR HELP PEOPLE IN AFFORDING THE COSTS THAT SET US APART FROM OTHER PLACES IN THE COUNTY? YEAH, WE ARE, AND WE'RE DOING THAT IN TWO WAYS.
ONE IS THAT WE'RE PARTNERING WITH ORGANIZATIONS LIKE BILL GALVESTON THAT ARE ACTUALLY EITHER AT THEIR COSTS OR THEY'RE GOING TO BE BELOW COST.
SO THERE'S A NATURAL, SINCE THEY'RE A COMMUNITY DEVELOPMENT CORPORATION, THEY'RE NOT A FOR PROFIT.
SO THERE'S GOING TO BE A VERSUS BUYING IT FROM A DEVELOPER OR US WORKING WITH A DEVELOPER TO BUILD HOMES.
WE WOULD LIKE TO WORK WITH PARTNERS THAT DON'T HAVE PROFIT MOTIVES SO WE CAN GET THAT TOTAL COST DOWN, WHICH IS GOING TO HELP TO KEEP IT AFFORDABLE, NOT LONG TERM BUT IN THE INITIAL ACQUISITION PRICE.
THE SECOND IS WE DO HAVE SOME RESOURCES FROM PREVIOUS BOARD.
BOARD ACTIVITIES THAT WE CAN USE TO HELP WITH THINGS LIKE DOWN PAYMENT ASSISTANCE.
BUT IT DOESN'T SPECIFICALLY ADDRESS YOUR QUESTION ABOUT LONG TERM WINDSTORM PROTECTION, BECAUSE IT IS EXPENSIVE, AND IT'S A FOLLY TO PUT PEOPLE INTO HOUSES THAT THEY CAN'T AFFORD LONG TERM.
BUT I DON'T KNOW IF WE HAVE A LOT OF TOOLS PERSONALLY OR WITHIN OUR BOARD TO DO THAT.
BECAUSE UNTIL WE CONQUER THAT THE PERCEPTION OF AFFORDABLE HOUSING JUST WON'T EXIST.
REALLY THE FOCUS IS TO GIVE PEOPLE A CHANCE AT ENTRY INTO GALVESTON.
THAT'S WHAT EVERYBODY'S HAVING A HARD TIME DOING.
ONCE THEY GET HERE, THEY'RE ABLE TO BUILD WEALTH, BUILD THEIR CAREERS, AND EVENTUALLY MAYBE MOVE ON TO SOMETHING ELSE.
BUT JUST GETTING A FOOTHOLD ON THE ISLAND IS A REAL PROBLEM.
AND I THINK THESE INCENTIVES ARE GOING TO HELP FACILITATE THAT.
YEAH, WE'RE DEFINITELY DOING ALL THE WORK TO FIGURE OUT BEST PRACTICES NATIONALLY, AS WELL AS WHAT'S HAPPENING IN TEXAS AND IN SURROUNDING AREAS LIKE AUSTIN.
WHAT WORKS BEST? HOW DO WE GET PEOPLE TO COME INTO THE ISLAND, TO LIVE HERE, TO PLAY HERE, TO INVEST HERE, SO AND YOU KNOW TO EVENTUALLY PAY TAXES HERE, RIGHT? AND IT STARTS WITH THAT FIRST LITTLE PUSH AND SOME OF THOSE THINGS LOOK LIKE THE DOWN PAYMENT ASSISTANCE, THERE'S PAYMENT IN LIEU
[02:20:01]
OF TAXES, THERE'S DIFFERENT, THERE'S CREATIVE SOLUTIONS THAT WE'RE LOOKING AT.HOWEVER, THIS IS THE FIRST STEP WITHIN THE CAPACITY OF AN ALL VOLUNTEER BOARD.
CITIES AND COUNTIES, THEY HAVE ENTIRE ORGANIZATIONS WITH STAFF THAT ARE ABLE TO DO THIS WORK AT A MUCH GRANDER SCALE.
THIS IS OUR FIRST START AND WE'RE PRETTY EXCITED ABOUT IT.
THIS IS ITEM 11 KK ON YOUR AGENDA TONIGHT FOR APPROVAL.
A QUESTION, WALK ME THROUGH AND I HAD TO STEP OUT TO TAKE THE CALL BUT YOU MAY HAVE DISCUSSED IT.
DO YOU MENTION IN YOUR MATERIAL HERE THAT YOU'LL WORK WITH THE CITY COUNCIL'S APPOINTED REP WHAT DOES THAT MEAN THAT'S CALLED IS THAT BOB SO THAT'S THE GENTLEMAN EXACTLY YEAH OKAY AND DO YOU COME TO COUNCIL FOR APPROVAL OF THE PURCHASE OF THESE LANDS THIS YOU'LL BE MOVING FORWARD JUST AND BOB WILL KEEP US UPDATED AS THE REPRESENTATIVE YES, WITHIN CERTAIN LIMITS THAT. WE'RE GOING TO GO OUT AND BUY A MILLION DOLLAR HOUSE.
DID WE DO THIS BEFORE? WE HAVE GONE THROUGH THIS BEFORE, AND THERE WERE CONCERNS.
I CAN'T REMEMBER WHAT THEY WERE THAT COUNCIL RELAYED TO YOUR GROUP, AND THEN I THINK YOU TOOK THOSE TO HEART AND CAME BACK NOW WITH A NEW APPROACH ON THIS.
AND THE BOARD HAS DONE THESE TYPES OF PROGRAMS BEFORE WITH THE GHFC AND GPFA. SO THE DIFFERENCE HERE IS INSTEAD OF JUST DOING FORECLOSURES, WHICH IS WHAT THEY WERE DOING PRIMARILY, THAT IF THERE ARE OTHER OPPORTUNITIES FOR JUST REGULAR REAL ESTATE TRANSACTIONS, BUT THEY'RE STILL GOING TO BE MOSTLY VACANT PARCELS UNLESS THERE'S LIKE A HOME ON THERE THAT NEEDS TO BE DEMOED.
AND THEY WANT THE ABILITY TO BE ABLE TO PURCHASE IT WITHOUT HAVING TO.
I DON'T EVEN SEE WHY YOU WOULD NEED TO CALL BOB.
YOU MIGHT NOT EVEN BE ABLE TO FIND HIM.
I MEAN, IF THE AUTHORITY IS GIVEN TO YOU, THEN WELL, THAT'S ONLY GOING TO EXCEED THE $25.
WE'RE JUST TRYING TO GIVE YOU COMFORT THAT WE'RE GOING THROUGH A PROCESS.
IF IT EXCEEDS WHAT? $25 PER SQUARE FOOT OF TOTAL ACQUISITION.
WE'RE NOT GOING TO BUY BIG HOMES.
WE'RE NOT GOING TO HAVE TO PAY OUR ATTENTION ANYMORE.
WE'RE JUST TRYING TO BE ABLE TO RESPOND TO THESE GOOD DEALS WHEN THEY COME UP, OR IF SOMEBODY WANTS TO DONATE A PIECE.
I WANT TO RECOGNIZE MR. BASTIEN IS HERE.
WHEN I THINK OF THE GALVESTON HOUSING FINANCE CORPORATION, I THINK OF YOURSELF.
YOU HAVE BEEN THERE HOW LONG NOW, SIR? I'VE BEEN THEIR ATTORNEY SINCE 2013.
HE'S KEEPING US OUT OF TROUBLE, I WOULD GUARANTEE YOU.
SO WOULD YOU WANT TO MAKE A STATEMENT ABOUT ANY OF THIS, SIR? I'LL TRY TO MAKE IT QUICK.
AGAIN, THIS CAME FOR COUNCIL'S CONSIDERATION, AND AS I RECOLLECT, SOME OF THE CONCERNS THAT COUNCIL MEMBERS HAD IS THAT THERE WEREN'T ANY GUARDRAILS.
THERE'S NO STATEMENT, FOR EXAMPLE, OF A MAXIMUM PRICE.
AND THAT MAY HAVE TO BE ADJUSTED LATER.
BUT LET ME POINT OUT THAT THE PROGRAM THAT COUNCIL IS BEING ASKED TO APPROVE IS ONLY A TWO YEAR PROGRAM.
AND NEAR THE EXPIRATION OF THAT TWO YEARS, WE WOULD EXPECT THAT OUR BOARD WOULD APPROVE AN EXTENSION AND ASK COUNCIL TO APPROVE THAT EXTENSION.
AND AT THAT POINT IN TIME, WHO KNOWS WHAT THE GUARDRAIL ON PRICE MIGHT BE.
AND IT'S NOT INTENDED TO CIRCUMVENT THE NORMAL PROCEDURE WHERE WE HAVE TIME TO LOOK AT A PIECE OF PROPERTY AND TO CONSIDER IT AND FOR THE FULL BOARD TO CONSIDER IT.
WHAT I HAVE SEEN IN MY OBSERVATIONS, PARTICULARLY WITH REGARD TO TAX FORECLOSURE SALES, IT'S THOSE THINGS ARE SNAPPED UP ALMOST IMMEDIATELY.
THERE ARE PEOPLE WHO ARE TROLLING LOOKING FOR FORECLOSED PROPERTIES IN GALLISTON OR DISTRESSED PROPERTIES OR PROPERTIES THAT ARE NOT ONLY GOING TO BE TAX FORECLOSED BUT PUBLICLY FORECLOSED.
AND SO YOU HAVE TO BE ABLE TO ACT ON THOSE IMMEDIATELY AND YOU HAVE TO HAVE SOMEBODY WHO, A BOARD MEMBER WHO HAS THE AUTHORITY TO ACT ON THOSE IMMEDIATELY. AGAIN, IT WOULD NOT BE GOING BACK TO THE FULL BOARD FOR APPROVAL.
HOWEVER, WITH THE GUARDRAILS IN PLACE, I WOULD HOPE THAT THERE WOULD BE NOT TOO MANY MISTAKES. AND I'LL MENTION
[02:25:02]
ALSO THAT THE PLAN ENVISIONS THAT THERE ARE GOING TO BE MISTAKES. LET'S BE REALISTIC.THERE ARE GOING TO BE MISTAKES.
THERE ARE GOING TO BE TIMES WHEN A PIECE OF PROPERTY IS PURCHASED, FIND OUT WE CAN'T DO ANYTHING WITH IT.
WE NEED LIQUIDATED AND MAY END UP BEING LIQUIDATED FOR LESS THAN IT WAS PURCHASED FOR.
THAT'S THE REAL ESTATE MARKET.
SO, BUT HOPEFULLY THAT WILL NOT TAKE PLACE, AND THE OPERATING PROCEDURES THAT THE BOARD IS LOOKING AT WILL, THERE WILL BE DUE DILIGENCE BEFORE ANY PROPERTY IS PURCHASED.
I WANT TO THANK ALL OF YOU, TOO. I'VE WATCHED THE GALVESTON HOUSING FINANCE GROUP AND FLOW OVER THE YEARS, AND I WOULD SAY THIS, THOUGH, WE'RE ON AN UPSWING, AND I WANT TO THANK ALL OF YOU FOR YOUR ENERGIES THAT YOU PUT INTO THIS.
BOB, THANK YOU FOR REALLY SPEARHEADING THIS ALSO.
BRING THIS BACK TO GETTING US A VIABLE COMMITTEE THAT HOPEFULLY WILL HELP THE SITUATION HERE.
SO IN CITIES WHERE I'VE SEEN THIS WORK SUCCESSFULLY, IN CITIES SIMILAR TO OURS THAT ARE RESORT CITIES, ESPECIALLY SINCE WE'RE LOOKING AT QUOTE UNQUOTE WORKFORCE HOUSING, DO PEOPLE WHO ARE PURCHASING THE PROPERTY HAVE TO SHOW THAT THEY ARE ACTUALLY WORKING HERE? YEAH, WE'RE ACTUALLY GOING TO THERE'S TWO ANSWERS TO THAT.
ONE IS OUR FOCUS IS REALLY ON THE RESIDENTS.
IT'S NOT BRINGING IN NEW RESIDENTS TO GALVESTON.
IT'S REALLY FOCUSED ON THE RESIDENTS.
AND HOW YOU DO THAT IS A LITTLE BIT TRICKY.
BUT THE FOCUS NEEDS TO BE ON, OF COURSE WE HAVE INCOME LIMITATIONS AND WE'RE FOCUSED ON SINGLE FAMILY HOMES.
BUT AT THE END OF THE DAY, WE HAVE TO HAVE A STRUCTURE IN PLACE AND A LOT OF THAT COMES WITH OUR PARTNERS.
LIKE FOR EXAMPLE, BUILD GALVESTON WILL HAVE THAT STRUCTURE AND AS LONG AS WE'RE IN ALIGNMENT WITH BUILD GALVESTON AND THE LONG TERM AFFORDABILITY AND THE ELIGIBILITY REQUIREMENTS ARE MET, WE'RE VERY SATISFIED.
WE DON'T NEED TO REINVENT THE WHEEL.
SO WHAT ARE THE ELIGIBILITY? I MEAN, LIKE OTHER CITIES THAT I'VE SEEN WEREN'T HIGHLY SUCCESSFUL, THEY'LL BE OFFICIAL, PROVE THAT YOU'RE WORKING SO MANY HOURS A MONTH.
IT'S DEFINITELY THE INTENTION THAT THEY LIVE HERE, THEY WORK HERE, THAT THEY BUILD THEIR FAMILIES HERE.
AND EVEN TO MARK'S POINT, THIS IS GOING TO BENEFIT NOT JUST PEOPLE LIVING HERE, BUT THE PEOPLE WHO WANT TO COME HERE EVENTUALLY AS WELL.
AND THAT'S THE GOAL, TO INCREASE ATTAINABLE HOUSING HERE FOR NOT ONLY THE PEOPLE IN WHAT WE CALL THE MISSING MIDDLE WHO ARE YOUR THIRD GRADE TEACHER, THEY'RE YOUR POLICE OFFICERS.
THEY'RE YOUR CITY WORKERS THAT SHOULDN'T BE RENTING.
THEY SHOULD BE ABLE TO PAY TAXES HERE AND INVEST INTO THE COMMUNITY AS WELL WITH THEIR HOMES AND THEIR TAXES.
WELL, AND TO YOUR POINT, MARIE, THE TARGET IS 80 TO 120, 20% AVERAGE MEDIAN INCOME.
SO THAT WILL BE A GUIDELINE FOR WHERE THESE HOUSES ARE.
AND THEY'LL STILL HAVE TO QUALIFY FOR SO YOU'LL HAVE THOSE INCOME NEEDS.
THE OTHER SIDE TO IT THAT I'VE SEEN IS THEY ALSO RESTRICT HOW THE HOUSE, THE VALUE OF THE HOUSE INCREASING.
WHERE THOSE PROPERTIES ARE RESTRICTED SO THAT IT DOESN'T START AS WORKFORCE HOUSING AND END UP BEING SOMETHING THAT ISN'T.
YEAH, WE'RE DEFINITELY LOOKING DOWN THAT ROUTE.
I THINK YOU'RE REFERRING TO COMMUNITY LAND TRUSTS.
I THINK SHE'S TALKING ABOUT LONG TERM AFFORDABILITY.
THEY ACTUALLY PUT RESTRICTIONS ON HOW MUCH THE HOUSE IS ALLOWED TO BE PLAYED IN VALUE AND SO FORTH.
I MEAN, AGAIN, NOT REINVENTING THE WHEEL.
THIS IS SOMETHING THAT'S GOING ON IN MULTIPLE PARTS OF THE COUNTRY.
THERE'S A LOT OF MODELS OUT THERE THAT WE'VE BEEN LOOKING AT OVER THE MONTHS.
THERE'S USUALLY A RECAPTURE PERIOD FOR THESE KIND OF THINGS OF AT LEAST FIVE YEARS.
IN OTHER WORDS, YOU CAN'T GET SOMEBODY IN THERE AND HAVE THEM TURN AROUND AND SELL IT.
FOR A PROFIT AS SOON AS THEY GET IN THERE.
SO HOW ARE YOU RESTRICTING THAT? WELL, LIKE I SAID, SOME MODELS INDICATE A FIVE YEAR RECAPTURE PERIOD. SO AFTER FIVE YEARS, THEN YOU'RE ABLE TO SELL IT OR DO WHATEVER YOU WANT, DEPENDING ON THE PROGRAM.
BUT WITHIN THAT FIVE YEARS, YOU'RE NOT ALLOWED TO DO THAT.
I THINK IT MAY ALSO DEPEND ON THE FINANCING TOOL THAT WE ACTUALLY USE TO GET THEM IN THERE, IF I'M NOT MISTAKEN, DEPENDING ON THE PARTNER THAT WE CHOOSE TO HELP WITH THAT. YEAH.
I JUST WANT TO POINT OUT ONE OTHER THING THAT WE SPECIFICALLY EXCLUDED FROM THIS.
THERE'S AN AGREEMENT IN PLACE BETWEEN THE CITY AND THIS BOARD
[02:30:01]
ABOUT IF THE CITY EVER DONATES CITY PROPERTY THAT THEY FIND TO BE SURPLUS TO THEM, THE CITY HAS ALL THESE CONTROLS IN PLACE. THAT'S A 20 YEAR AGREEMENT. IT ACTUALLY EXPIRES IN NOVEMBER OF THIS YEAR, SO WE'LL BE COMING BACK TO YOU ALL. BUT ANY OF THAT IS EXCLUDED FROM IT.SHARON? WHAT WE JUST DISCUSSED THEN, DOES THAT APPLY TO WHAT WE'RE TALKING ABOUT, WHAT WE'RE GOING TO DO TODAY? TODAY, WHAT DO WE WANT? TODAY WE'D LIKE APPROVAL OR YOUR APPROVAL RESOLUTION TO GIVE US THE ABILITY TO PURCHASE PROPERTY.
BECAUSE AFTER THAT, ALL THOSE SPECIFIC GUIDELINES ARE PUT INTO A PROGRAM.
THERE ARE MILLIONS OF PROGRAMS OUT THERE FOR THOSE OF US WHO ARE LOW TO MODERATE OR MIDDLE INCOME.
THERE ARE MANY PROGRAMS ACROSS THIS COUNTRY THAT YOU CAN LOOK AT. BUT I THINK IF WHAT WE'RE LOOKING AT NOW, GIVING YOU THE PERMISSION AT $25 A SQUARE FOOT NOT TO GO OVER THAT, IS THAT WHAT IT IS? THEN I DON'T THINK WE SHOULD TRY TO WRITE YOU A PROGRAM.
GENTLEMEN, LADIES, EXCUSE ME, COUNCILMAN ROBERTS.
HAVE YOU ALL EVER CONSIDERED WORKING WITH THE MARSHALL DEPARTMENT OVER PROJECTS THAT HAVE BEEN, OR HOUSES THAT HAVE BEEN CONDEMNED? THERE IS OPPORTUNITY THERE.
A LOT OF THE TIMES THE CONDEMNATION OCCURS BECAUSE THE OWNER CAN'T AFFORD TO MAINTAIN OR PUT THINGS TOGETHER.
AND I FOUND THAT THERE'S SEVERAL HOMES THAT HAVE BEEN CONDEMNED THAT HAVE THE ABILITY TO BE BROUGHT BACK UP.
CAN WE HAVE AN ANSWER? EXTENDED DISCUSSION ABOUT WHETHER OUR STRATEGY WOULD INCLUDE REHABILITATING HOMES, WHETHER THEY WERE CONDEMNED OR WHETHER THEY WERE JUST IN BAD SHAPE.
AND WE'VE GOT SEVERAL PEOPLE ON OUR BOARD THAT ARE DEVELOPERS AND HAVE A LOT OF CONSTRUCTION EXPERIENCE.
AND THEY KIND OF WARNED US OFF IT, FRANKLY, BECAUSE THERE IS SO MUCH UNCERTAINTY ABOUT WHAT IT'S ACTUALLY GOING TO COST TO BRING IT UP TO STANDARD, TO CODE, TO SAFETY, TO GOOD STANDARDS YOU'D WANT TO SELL TO ANYONE HERE IN CALVERT.
SO WE HAVE MADE THE DECISION NOT TO GO IN THAT DIRECTION.
BUT IF IT WAS A DEMO PROJECT, IT WAS BAD ENOUGH THAT THEY WOULD JUST BE DEMOING.
YEAH, WE'LL DEMO SOMETHING, BUT WE WON'T REHABILITATE.
[Items 4.D & 4.E]
VERY GOOD.LET'S READ ITEM 4D AND 4E TOGETHER, PLEASE.
ITEM 4D, DISCUSSION OF THE CITY AUDITOR'S OFFICE INTERNAL SERVICE FUND DRAFT AUDIT. AND 4E, DISCUSSION OF THE FUND BALANCE POLICY.
VERY GOOD. I'D LIKE TO INVITE THOSE INDIVIDUALS.
GLENN, IS GLENN HERE? AND SHEILA, IF YOU'LL COME FORWARD ALSO.
I'M GOING TO HAVE SHEILA SIT AT THE TABLE WITH YOU.
WHERE DO YOU WANT TO BE? HAVE A SEAT, YES.
AND WE NEED TO GET A FEW MORE CHAIRS UP HERE.
AND SHEILA, PULL UP A CHAIR ALSO, IF YOU WOULD.
COUNCIL, THIS IS A TOPIC THAT I THINK IS NEAR AND DEAR TO A LOT OF OUR HEARTS HERE.
IT'S A TOPIC THAT I'VE NOTICED THROUGHOUT THE COMMUNITY THAT HAS BEEN WIDELY MISUNDERSTOOD.
AND SO WHAT I'D LIKE TO DO BEFORE, GLENN, BEFORE YOU GIVE YOUR, WHAT WE'LL DO IS WE'LL START, I'D LIKE TO HAVE SHEILA GIVE A ONE ON ONE VERY QUICKLY ABOUT INTERNAL SERVICES FUND AND HOW THIS OPERATES.
WE'RE NOT TALKING ABOUT HER ITEM AS FAR RIGHT NOW OF THE FUND BALANCE POLICY, BUT I WANT HER TO OUTLINE FOR THE PUBLIC WHAT THE INTERNAL SERVICE FUND AND WHAT THIS ACTUALLY MEANS.
ONCE SHEILA DOES THAT, THEN WE'LL MOVE AHEAD AND HAVE YOU PRESENT YOUR AUDIT.
I'M JUST GOING TO HAND THIS OUT SO THAT EVERYBODY HAS IT TO REFER TO AT A LATER DATE IF THEY ARE INTERESTED.
NIGHTTIME READING? NIGHTTIME READING.
[02:35:02]
SYNOPSIS OF KIND OF WHAT INTERNAL SERVICE FUNDS ARE.SO WHAT ARE INTERNAL SERVICE FUNDS? SOUNDS LIKE A CRAZY THING WE DO.
THEY ARE FUNDS THAT ARE USED TO PROVIDE SERVICES TO OUR INTERNAL CITY DEPARTMENTS, RIGHT? THE CITY DOES WORK, BUT WE HAVE TO SUPPORT THAT WORK. SO IT'S GOING TO BE INSURANCE.
FLEET MAINTENANCE, TECHNOLOGY SERVICES, ANY SORT OF WORK THAT SUPPORTS THE CITY SERVICES THAT WE PROVIDE TO THE RESIDENTS.
THEY FUNCTION AS PROPRIETARY OR ENTERPRISE FUNDS, MEANING THEY SHOULD OPERATE LIKE A BUSINESS IN THAT THEY ARE CHARGING FOR THE SERVICES AND HOW MUCH THEY COST. SO WHAT IT COSTS TO MAINTAIN CARS, THOSE ARE THE CHARGES THAT ARE BEING PROVIDED TO THE CITY DEPARTMENTS, RIGHT? IT'S A COST REIMBURSEMENT.
THE COST OF THE SERVICES ARE CHARGED TO THE DEPARTMENTS THAT ARE THE USERS, OKAY? WE USE AN EQUITABLE AND CONSISTENT FORMULA ACROSS THE BOARD FOR EVERY SINGLE ONE OF THE SERVICES.
IT SHOULD TIE TO THE TYPE OF SERVICE THAT IT IS.
FOR EXAMPLE, PARKS GETS CHARGED GARAGE CHARGES, BUT CITY SECRETARY DOES NOT BECAUSE THEY DON'T HAVE ANY VEHICLES.
AND SO THERE'S A LOGICAL FORMAT TO HOW THESE CHARGES ARE PUSHED OUT TO THE USERS OF THE SERVICES.
AND THE PURPOSE IS TO CLEARLY UNDERSTAND THE PRICE OF PROVIDING A COMPREHENSIVE SERVICE TO THE RESIDENTS.
SO, FOR EXAMPLE, WE KNOW WE NEED TO PROVIDE FIRE SERVICE TO THE CITY.
WHAT IS THE TOTAL WALKOUT PRICE OF FIRE SERVICE? THAT INCLUDES EVERYTHING, THE PEOPLE, THE APPARATUS, THE TECHNOLOGY, THE FACILITIES, THE CONTRACTS, THE SUPPLIES, THE FLEET MAINTENANCE, THE INSURANCE.
AND BY DOING IT THIS WAY, WE CAN ASSIGN THOSE COSTS PER CITY SERVICE TO THE RESIDENTS AND WE CAN SEE THAT WALKOUT PRICE, VERY IMPORTANT.
HOW DOES IT SPECIFICALLY WORK IN THE CITY OF GALVESTON? SO THE FEES, THE CHARGES FOR SERVICES, THE FEES ARE BUDGETED DURING THE BUDGET PROCESS, RIGHT, TO THE VARIOUS DEPARTMENTS.
SO IN EVERY BUDGET THAT WE CREATE, EVERY DEPARTMENT MAY HAVE GARAGE CHARGES, COMPUTER CHARGES, POSTAGE.
THESE ARE WHERE THE FEES ARE BEING CHARGED TO THE DEPARTMENTS.
THERE IS A MONTHLY JOURNAL ENTRY THAT OCCURS IN OUR ACCOUNTING DEPARTMENT WHERE THOSE CHARGES ARE APPLIED TO THE DEPARTMENTS AND MOVED TO THE INTERNAL SERVICE FUNDS.
SO IT HAPPENS ON A MONTHLY BASIS, A TWELFTH OF IT HAPPENS EACH MONTH, RIGHT? THE CHARGES ARE RECEIVED AS REVENUE IN THE INTERNAL SERVICE FUNDS TO PAY FOR THAT WORK.
AND THEN AT THE END OF ANY FISCAL YEAR WHERE REVENUES EXCEED EXPENDITURES, OKAY, THAT RESULT IN AN INCREASE IN THE FUND BALANCE OR THE NET POSITION.
AND THIS COULD BE CAUSED, FOR EXAMPLE, BY SALARY LAPSE OR A PROJECT NOT BEING COMPLETED OR THAT SORT OF THING.
AT THE VERY BOTTOM THERE IN TEENY TINY ON THAT SLIDE, I'VE NOTED THAT THE INTERNAL SERVICE FUNDS ARE IN YOUR BUDGET ON PAGES 311 TO 361.
THAT IS, YES? YEAH, AND I JUST WANT TO INTERJECT.
I'VE BEEN DOING THIS 35 YEARS.
INTERNAL SERVICE FUNDS WERE CREATED FOR AN EXTRA LAYER OF TRANSPARENCY FOR THE GENERAL PUBLIC THAT READS YOUR BUDGETS.
IT'D BE VERY EASY AND YOU CAN GO TO OUR BUDGET LOOK AND SEE EXACTLY THE HOW OUR GARAGE EXPENDITURES GO FOR INSTANCE.
HOWEVER YOU MAY NOT KNOW HOW THOSE ARE SPREAD UPON ALL THE CITY DEPARTMENTS.
WHO SPENDS MORE IN GARAGE? FEES AND WHY WHO HAS THE MOST CARS AND THAT WAY IT'S JUST AN ADDED LAYER OF TRANSPARENCY AND THAT'S WHY GOVERNMENTS USE INTERNAL SERVICE FUNDS ARE BROADLY USED AND ACCEPTED ACROSS MOST GOVERNMENTS FOR THEIR REASON IT'S IT'S BEEN IN THAT BEEN THAT WAY IN ALL MY 35 YEARS OF DEALING WITH GOVERNMENTS AND IT'S A GOOD TRANSPARENCY TOOL SO ANYONE WHO'S INTERESTED IN SEEING THAT THEY CAN GO TO THE BUDGET DOCUMENT AND RIGHT THERE AT THE BOTTOM, I JUST GAVE A LITTLE SNIPPET OF HOW WE ALLOCATE THOSE COSTS.
FOR EXAMPLE, WHEN IT COMES TO IT, YOU'LL SEE CITY SECRETARIES AT THE TOP BECAUSE THEY COME FIRST IN THE ALPHABET AND BECAUSE THEY'RE AWESOME.
BUT THEY HAVE FOUR POSITIONS, AND THEN THEY HAVE 20 DEVICES FOR A TOTAL OF 24. OKAY IN FISCAL YEAR 25, THAT 24 UNITS, TOTAL UNITS, AS A PART OF THE TOTAL COST.
IN 26, IT WOULD HAVE BEEN $50,890, BUT THEN WE REBATED OR DISCOUNTED THAT BY THAT DRAWDOWN OF FUND BALANCE.
SO THAT DISCOUNT FOR THEM WAS $2280, AND THEN THE ADJUSTED COST THAT'S ALLOCATED IN THE BUDGET IS THE $48,610.
SO THESE TABLES ARE IN THOSE BUDGET PAGES IF ANYONE'S INTERESTED.
AND THEN FINALLY, ON THE BACKSIDE, YOU'RE GOING TO SEE THAT THE CITY HAS CHARTER RESTRICTIONS THAT COST FUND BALANCE.
TO STAY IN THE ALLOCATING FUND, THAT IS IN ARTICLE 7, SECTION 09, AND THERE'S SEPARATELY IN ARTICLE 14, RIGHT? IS THAT WHAT THAT IS? 14? SECTION 22 AND 23.
[02:40:01]
YES, XIV.I WAS DOING THE MATH IN MY HEAD.
DISCOURAGE THE TRANSFER OF FUND BALANCE FROM ANY ENTERPRISE FUNDS.
BY MANDATING A PENALTY TO THE TAX RATE SETTING IN FUTURE YEARS.
SO ESSENTIALLY THOSE PARTS IN OUR CHARTER SAY THAT IF YOU TRANSFER MONEY OUT OF AN ENTERPRISE FUND, IT BECOMES AN OBLIGATION OF THE GENERAL FUND.
AND SO IT LIMITS YOUR ABILITY TO SET THE TAX RATE WITHOUT ACCOUNTING FOR THAT OBLIGATION.
SO THOSE ARE THE CHARTER RESTRICTIONS ON HOW WE HAVE TO HANDLE THIS.
MEANING, DOES THIS HAVE TO DO WITH THE RESERVES OR DOES THIS HAVE TO DO WITH THE CHARGES THAT YOU PERCENT SO CHARGES FOR SERVICE ARE NOT TRANSFERS OKAY THOSE ARE TWO DIFFERENT THINGS BUT ESSENTIALLY IF YOU TOOK FUND BALANCE AND YOU TRANSFERRED IT TO THE GENERAL FUND FROM THE WATER SEWER FUND OR FROM ANY OTHER THAT WAS AND THIS IS KIND OF I KNOW WHAT THIS IS PREVENTING THIS IS PREVENTING WASHING MONEY BASICALLY TO MOVE IT FROM AN ENTERPRISE FUND TO A GENERAL FUND EXPENDITURE BUT THE LIKE WHAT WE'RE DOING WITH THE NINE HUNDRED THOUSAND THE FOUR HUNDRED AND 500 THOSE ARE GOING TO FUNDS THAT ALSO SUPPORT THE SAME FUNCTION AS THE ENTERPRISE FUND, SO THAT WOULD PRECLUDE IT FROM ARTICLE 14, SECTION 2.
YEAH, SO ESSENTIALLY AND THE, WHAT'S THE OTHER FUND? THE GENERAL HEALTH HEALTH AND LIFE INSURANCE.
SO BECAUSE OF THESE RESTRICTIONS, THE WAY WE'RE DOING IT IS WE REBATE FUND BALANCES DEPARTMENTS.
DURING THE BUDGET PROCESS, THAT'S WHERE YOU TAKE THAT MANAGEMENT ACTION, BY DISCOUNTING THE SERVICE CHARGES, AND IT'S ACCORDING TO THE SAME RATIOS IN WHICH THEY ARE COLLECTED.
SO THE RATIOS THAT ARE DETERMINED FOR, LET'S SAY THERE'S 24 UNITS FOR CITY SECRETARIES, THAT'S THE SAME UNIT YOU WOULD USE FOR THE REBATE, RIGHT? THE REBATES AND DISCOUNTS SHOULD OCCUR IN OUR PROFESSIONAL AND BEST PRACTICES OPINION OVER A FIVE YEAR MOVING AVERAGE TO SMOOTH THE IMPACT OF THE DISCOUNT YEAR OVER YEAR.
THE GOAL IS TO AVOID A LARGE DECREASE IN COST IN A SINGLE YEAR THAT WOULD NATURALLY INCREASE THE FOLLOWING YEAR WITHOUT HAVING THE ABILITY TO GENERATE THE REVENUE THAT'S REQUIRED TO PAY FOR THAT SINCE WE HAVE CAPS IN THE GENERAL FUND ON PROPERTY TAXES.
SO SMOOTHING THAT THAT REBATE OUT OVER A PERIOD OF TIME ALLOWS FOR LESS FLUCTUATION IN OUR ABILITY TO MEET THOSE NEEDS.
THAT'S MY VERY QUICK INTERNAL SERVICES FUND 101.
WELL, I WANTED TO BRING THIS FORWARD BECAUSE THIS IS SOME INFORMATION I THINK GETS CONFUSING FOR PEOPLE.
SO I WANTED HER TO GIVE US AN UPDATE ON WHERE WE ARE ON THAT.
ANY QUESTIONS ON THAT? I WANT TO MAKE SURE I UNDERSTOOD.
YOU SAID ON CITY CHARTER, THE CITY HAS CHARTER RESTRICTIONS THAT, AND ON NUMBER TWO, I THINK YOU SAID, YOU MADE THE STATEMENT THAT IT AFFECTED THE GENERAL FUND TAX RATE? IT COULD. SO THE WAY THESE CHARTER RESTRICTIONS READ IS THAT IF YOU TRANSFER MONEY TO THE GENERAL FUND, THEN UP TO 7%, OR AT THAT 7% MARK YOU HAVE TO START DECREASING YOUR PROPERTY TAX RATE TO MAKE UP FOR THAT TRANSFER.
ESSENTIALLY, IF YOU WASH THE MONEY.
YOU HAVE TO PAY FOR IT ON THE BACK END.
THEY DON'T WANT YOU TO RAISE WATER BILLS AND THEN PAY FOR GENERAL FUND ACTIVITY.
OKAY, SO IT'S REQUIRING AN OFFSET.
THE SECOND PORTION OF IT IS IT SAYS ANY TRANSFERS FROM AN ENTERPRISE FUND TO AN ENTERPRISE FUND OR ANYTHING ELSE, IF IT'S A TRANSFER.
SO A LUMP OF MONEY TO HELP PAY FOR SOMETHING HAS TO BE REPAID.
IF IT IS NOT, IT BECOMES AN OBLIGATION OF THE GENERAL FUND.
THAT IS HOW THIS CHARTER AMENDMENT WORKS.
SO IF, LET'S SAY, THE WATER FUND LENT MONEY TO THE SANITATION FUND AND THE SANITATION FUND WAS UNABLE TO PAY IT BACK, THE GENERAL FUND IS OBLIGATED TO PAY THAT BACK.
AND SO IT IMPACTS YOUR GENERAL FUND IN BOTH SITUATIONS.
I GUESS, I MEAN, MY AGAIN, THERE'S MORE TO COME, BUT I GUESS I DON'T REALLY UNDERSTAND IS WHY WOULD WE JUST NOT REBATE IT BACK TO THE DEPARTMENTS? THAT IS WHAT WE'RE DOING, AND THAT IS THE CORRECT WAY TO DO IT.
THAT'S WHAT WE'RE DOING NOW, BUT WE HAVEN'T BEEN.
AND SO THAT'S WHAT I THINK A LOT OF THIS RELATES TO.
SO IN THE PAST, WHEN THERE HAVE BEEN REBATES IN THE PAST.
AND IT WASN'T LIKE THE LAST TWO YEARS, BUT PRIOR TO THAT, THERE HAVE BEEN REBATES HISTORICALLY.
THIS YEAR IN 26, WE DID DO THE REBATE, AND THAT IS WHAT I'M SAYING IS THE CORRECT WAY TO DO IT.
SO YOU AVOID A TRANSFERRING OF A LUMP SUM OF MONEY TO A FUND THAT ISN'T NECESSARILY THE CORRECT RECIPIENT.
IF YOU REBATE IT ACCORDING TO THE RATIOS THAT THE DEPARTMENTS ARE PAYING IN
[02:45:02]
TO THOSE SAME DEPARTMENTS, IT IS NOT A TRANSFER AND IT ALIGNS WITH THE ORIGINAL USE RIGHT UM IT WOULDN'T BE THE INTERNAL SERVICE FUND JUST TRANSFERRING A LUMP SUM OF MONEY TO THE GENERAL FUND TO SIT IN THE FUND BALANCE RIGHT BECAUSE THEN ALL OF A SUDDEN WE'RE CREATING A TAX RATE SITUATION BUT THOSE THOSE REBATES WOULD ESSENTIALLY AFFECT THE FOLLOWING YEAR'S BUDGET AND SO YOU KNOW WHEN WHEN WHEN WE DON'T HAVE THAT PRACTICE AND THEY CONTINUE ON RELYING ON THE COST THAT THEY'VE HAD IN THE PAST BECAUSE THEY WEREN'T REBATED THE AMOUNT THEY DIDN'T SPEND, TO ME THAT DOESN'T WELL, THE COST IS ADJUSTED EVERY YEAR, AND THE COST IS BASED ON THE PRIOR YEAR'S COST.AND JUST BECAUSE YOU UNDERSPENT IN ONE YEAR DOESN'T NECESSARILY MEAN YOU'RE GOING TO UNDERSPEND IN THE SECOND YEAR.
FOR INSTANCE THE IT TRANSFER IS A GOOD EXAMPLE.
THEY COULD NOT FILL THOSE POSITIONS LAST YEAR, SO IT PUSHED SOME OF THE FUND BALANCE.
WE'RE ANTICIPATING THIS YEAR THAT IF WE CAN'T FILL THOSE POSITIONS, WE'RE GOING TO TRY TO FILL THEM WITH CONTRACTORS.
YOU ASSESS BASED ON WHAT YOU THINK YOU'RE GOING TO SPEND, WHAT YOU SPENT THE PREVIOUS YEAR AND WHAT YOU THINK YOU'RE GOING TO SPEND THIS YEAR.
THE RATES ARE ACTUALLY ADJUSTED EVERY SINGLE YEAR.
NOW, WHETHER THEY INCLUDE A REBATE OR NOT, IT DEPENDS ON HOW YOU TERM IT.
BUT THE RATES ARE ADJUSTED AND LOOKED AT EVERY SINGLE YEAR.
IT'S NOT A CONSTANT RATE OR A CONSTANTLY INCREASING RATE.
THEY ARE ADJUSTED EVERY YEAR BASED ON PRIOR YEAR USAGE AND EXPENSES, NUMBER OF UNITS.
THAT'S WHY WE'RE SO HIGH ON GAS THIS YEAR BECAUSE LAST YEAR WAS BARREL, OR THIS YEAR'S FISCAL YEAR AND THEN PREVIOUS FISCAL YEAR.
YEAH, IF YOU LOOK AT IT, GARAGE JUST TELLS THE TALE.
I MEAN, THAT FUND BALANCE HAS PEAKS AND VALLEYS ALL THROUGH IT BECAUSE IT DEPENDS ON FUEL PRICES, LUBE PRICES, PARTS AVAILABILITY AND COST, PRICE OF VEHICLES, TIRES.
BUT THE EXCESS HELD, IF I'M NOT MISTAKEN.
JUST IN RECOLLECTION, THE EXCESS HELD IS $900 MILLION, AVERAGED OVER MANY YEARS.
WELL, IT AVERAGES OUT OVER THE YEARS, YES, BECAUSE WE DON'T EVER JUST BUDGET MONEY TO GO INTO FUND BALANCE, BUT IT'S WHATEVER FALLS TO THE BOTTOM.
WHAT WE'RE GOING TO ASK YOU TODAY IS TO SET A POLICY AS TO WHAT CAP YOU WANT TO PUT ON THAT.
YOU KNOW, THAT'S FOR YOU GUYS TO DISCUSS.
IT ALL COMES DOWN, YOU KNOW, WE CARRY RESERVES IN THESE FUNDS FOR VERY SPECIFIC PURPOSES.
IT'S TO BOTH SMOOTH OUT, AS SHEILA POINTED OUT, YOU DON'T WANT GIANT PEAKS AND VALLEYS IN ASSESSMENTS ON THESE FUNDS BECAUSE IT CAUSES MASSIVE SWINGS IN YOUR TAX RATE.
AND IT ALSO CAUSES ISSUES FOR YOUR DEPARTMENTS AS YOU GO DOWN THE ROAD.
THE OTHER THING IS, IS THAT THE REASON SOME OF THESE FUNDS HAVE THESE, LIKE THE GARAGE IN PARTICULAR, WHEN WE FIRST STARTED TALKING TO THIS, GAS WAS AT ONE OF THE LOWEST PRICES WE'VE SEEN IN FIVE OR SIX YEARS.
AND NOW ALL OF A SUDDEN IT'S JUMPED UP TO SOME OF THE HIGHEST WE'VE SEEN.
SO YOU HAVE THESE MAD FLUCTUATIONS.
SO THAT'S WHY YOU CARRY THESE FUND BALANCES.
EVERY COUNCIL HAS DIFFERENT DEGREES OF RISK THAT THEY'RE WILLING TO TAKE.
PRIOR COUNCILS ERRED VERY CONSERVATIVELY.
THEY WERE VERY CONSERVATIVE WITH THESE TAX DOLLARS.
IF THIS COUNCIL HAS A HIGHER DEGREE OF RISK THEY WANT TO TAKE AND TAKE A LESS CONSERVATIVE APPROACH TO IT, THEN THAT'S FINE.
WE'RE WILLING TO DO THAT, AND WE'RE HERE TO TALK ABOUT THAT POLICY TODAY.
AND I GUESS LIKE IN LAYMAN'S THOUGHTS, YOU KNOW, WHEN WE DON'T HAVE THE FUNDING FOR ROADS AND DRAINAGE.
BUT YET WE HAVE EXCESS IN OTHER DEPARTMENTS THAT HAVEN'T SPENT IT. AT THIS POINT IN TIME, I GUESS I JUST NEED TO UNDERSTAND THE OPPORTUNITY FOR PASS DOWN BECAUSE IT'S NOT OUR MONEY, IT'S OUR TAXPAYERS MONEY. AND TO HOLD THAT IN EXCESS YEAR AFTER YEAR, TO ME, IS NOT BEING FAIR TO THE TAXPAYER.
I WILL TELL YOU, IN 35 YEARS OF BUDGETING AND LOOKING AT MANY OTHER CITIES, ESPECIALLY IN OUR REGION, WITH THE EXCEPTION OF LAMARCK, AND YOU CAN TAKE THAT AS IT IS, MOST OF THE CITIES CARRY FUND BALANCES LIKE THIS.
IT'S IMPERATIVE THAT YOU DO SO.
AND THEY HAVE POLICIES, AND THAT'S WHAT WE'RE HERE TO TALK ABOUT TODAY.
AND I DON'T HAVE A PROBLEM WITH THAT AT ALL, TO SET THAT POLICY.
WE CAN HAVE THAT DISCUSSION ALL DAY LONG.
I'LL TELL YOU, COMPARED TO A LOT OF CITIES, WE PROBABLY HAVE LESS THAN MOST CARRY IN SOME OF THESE FUNDS.
IT'S THE DEGREE OF RISK THAT A COUNCIL IS WILLING TO WEIGH IN ON TO DO THAT.
IT'S LIKE DECIDING YOUR DEDUCTIBLE ON YOUR INSURANCE.
IT'S WHAT DEGREE OF RISK OR SELF FUNDING YOU WANT TO TAKE INTO ACCOUNT.
WE'RE A LITTLE HIGH IF YOU COMPARE TO OTHER CITIES, PROBABLY IN HEALTH, BUT WE'RE SELF FUNDED.
WE HAVE A HIGHER DEGREE OF RISK THERE, SO WE CARRY A HIGHER BALANCE.
WE SERVICE A TREMENDOUS AMOUNT OF VEHICLES IN OUR GARAGE.
WE SERVICE OTHER ENTITIES IN OUR GARAGE.
SO REMEMBER WHEN WE'RE TALKING ABOUT SETTING RATES, IT'S NOT JUST THE RATES THAT WE'RE SETTING FOR OUR DEPARTMENTS, BUT IN THE GARAGE WE ACTUALLY SET FEES FOR ALL THE OTHER ENTITIES THAT USE OUR FUEL SERVICES AND USE OUR SERVICES AT THE GARAGE.
SO THERE'S A WHOLE LOT THAT GOES INTO IT.
AND IT'S ALL A HEALTHY DISCUSSION.
I DON'T THINK ANYBODY'S GOT ANY PROBLEM WITH ANY OF IT.
AND I DON'T HAVE A PROBLEM WITH SETTING A CAP.
I THINK THE CAP NEEDS TO BE IN LINE WITH WHAT WE SET FOR RESERVES IN OTHER AREAS, BUT THAT'S FOR COUNCIL TO DECIDE.
[02:50:01]
THAT'S A POLICY DECISION.AND, BEAU, YOU'RE EXACTLY RIGHT, YOUR STATEMENT.
THAT'S WHY WE'RE HERE, TO SET A POLICY, TO DETERMINE HOW THIS COUNCIL WANTS TO MOVE FORWARD WITH.
I DON'T WANT TO USE THE WORD PHILOSOPHICALLY HOW WE WANT TO DO THAT BUT THAT'S HOW BASICALLY IT TURNS OUT TO BE AND OTHER COUNCILS CAN CHANGE THAT AS THE NEW COUNCILS COME BUT AND WE'RE TALKING I THINK WHAT WE'RE TALKING AROUND HERE ABOUT IS WHAT LEVEL OF RISK I THINK HE SAID WHAT LEVEL OF RISK WERE WE WILLING TO TAKE FOR INSTANCE YOU KNOW WE TRY TO HAVE 120 DAY RESERVE FOR THE CITY WHAT IS OUR LEVEL OF RISK FOR THESE INTERNAL SERVICES 90 DAYS FOR RESERVES OR WHAT WHAT IS THAT IS THAT WHAT WE'RE I'M SAYING. SO RIGHT NOW THE POLICY REFLECTS ONE MONTH.
JUST BASED ON THE VIBE WE'VE GOTTEN FROM COUNCIL, WE WANTED TO GIVE YOU ALL OUR MOST CONSERVATIVE, THE LOWEST AMOUNT WE WOULD BE COMFORTABLE WITH.
WE BUDGETED IN 26 TO 90 DAYS IS THE DIRECTION WE WERE HEADED IN, JUST BECAUSE 90 DAYS IS TYPICALLY WHAT THE CITY HAS DONE IN ALL OF ITS FUNDS.
THE MONTH WE HAVE CURRENTLY LISTED IN THE POLICY IS THE ABSOLUTE LOWEST THAT I WOULD RECOMMEND THAT COUNCIL ADOPT.
30 DAYS WOULD BE THE ABSOLUTE LOWEST.
AND JUST TO BE CLEAR, THESE FUND BALANCES, THEY'RE NOT FOR ME TO DECIDE WHEN TO SPEND AND HOW TO SPEND.
THEY HAVE TO BE APPROVED BY COUNCIL.
YOU KNOW, THERE'S A MENTION OUT THERE THIS IS A SLUSH FUND.
NO, THIS IS, I MEAN, IN THAT CASE, EVERYBODY'S HOME HAS A SLUSH FUND IF YOU HAVE A SAVINGS ACCOUNT.
THAT'S EXACTLY WHAT THESE ARE, AND THAT'S EXACTLY WHAT IT IS.
IT'S A BUFFER TO COVER RISK, AND EVERY CITY THAT I KNOW OF DOES IT.
LET'S MOVE ON NOW, AND I'D LIKE TO HAVE GLENN.
I JUST HAVE ONE, YOU KNOW, COMMENT TO YOU AND BRIAN.
AND THAT'S THE REASON FOR A POLICY? ABSOLUTELY.
BECAUSE YOU KNOW, HOLDING RESERVES, NOT THE WHOLE PUBLIC AND THE TAXPAYERS, THEY DON'T UNDERSTAND THAT, YOU KNOW, WE'RE KEEPING RESERVES IN THERE.
SO YOU WANT A POLICY SO IT'S VERY TRANSPARENT TO COUNCIL AND TO THE TAXPAYERS AND THE CITIZENS.
GO BACK 15 YEARS AGO WHEN I FIRST GOT HERE, THE CITY DIDN'T HAVE A POT TO PISS IN WHEN IT TERMS OF RESERVES BECAUSE WE WERE SUFFERING FROM HURRICANE IKE.
SO, YOU KNOW, THAT'S NOT PRUDENT.
IF WE'D HAVE BEEN HIT BACK TO BACK LIKE WE'VE BEEN HIT RECENTLY.
WE WOULD HAVE BEEN IN A REALLY, REALLY BAD PLACE.
AND THAT'S WHY CITIES CARRY THESE TYPES OF RESERVES, BOTH IN THE GENERAL FUND AND IN THE INTERNAL SERVICE FUNDS AND IN OUR UTILITY FUNDS AS WELL.
BUT THE DEGREE OF RISK IN EACH FUND VARIES, AND THAT'S WHY POLICIES ARE GOOD.
SO I THINK THAT'S GOOD DISCUSSION TO HAVE.
GLENN, IN YOUR PRESENTATION HERE, WOULD YOU MIND TOUCHING ON TWO THINGS THAT I'D LIKE FOR YOU TO TOUCH ON IN ADDITION TO WHAT YOU'RE GOING TO MENTION? SURE.
ONE IS I'D LIKE FOR YOU TO MAKE A COMMENT.
I HAD MENTIONED THAT IS PROPOSED A ONE MONTH RESERVE FUND FOR THESE.
WOULD YOU MAKE A COMMENT ON YOUR CALCULATIONS IF THAT IS, IF YOU'RE RECOMMENDING HIGHER THAN THAT? I MEAN, I HEARD BRIAN'S VERY CLEARLY AT ONE OF THE MEETINGS SAY HE NEEDS HIS RESERVES FOR DISASTER.
AND SO WE STARTED AN ANALYSIS, KERRY DID MOST OF IT, AND WE LOOKED AT HISTORICAL DATA.
THAT'S WHAT THE GFOA SAID TO DO.
AND WE CAME UP WITH A LOT HIGHER FIGURES WHERE IT SHOULD BE LIKE 10% OR SOMEWHERE AROUND THREE MONTHS.
I JUST WANT THE COUNCIL TO REALIZE THAT WHAT IS PROPOSED BY STAFF HERE IS LESS THAN WHAT I THINK GLENN IS MENTIONING WE SHOULD PUT IN THERE.
SECOND OF ALL, IN YOUR CALCULATIONS HERE, HAVING A RESERVE FUND OR HAVING A FUND BALANCE IS PERFECTLY FINE MEETING THE STIPULATE, THE GUIDELINES OF THE ACCOUNTING GUIDELINES YOU'RE WORKING UNDER.
IS THAT CORRECT, GLENN? HAVING A RESERVE FUND, YOU'RE NOT SAYING WE SHOULDN'T HAVE A FUND BALANCE? NO.
THE SCOPE OF THE AUDIT, I WANT TO MAKE SURE, THE SCOPE OF THE AUDIT WAS TO GO 10 YEARS BACK AND LOOK AT COST SAVING MEASURES FOR THE INTERNAL SERVICE FUNDS.
SO WE WENT 10 YEARS BACK, AND WE SEE THAT WE HAD EXCESS FUND BALANCES THERE.
NOW, THAT COULD BE VERY PLAIN TO STAFF, BUT IT'S NOT PLAIN TO THE CITIZENS OR THE TAXPAYERS.
SO WHAT WE NEED, AND WE ANALYZED OTHER CITIES, AND WHEN THEY DO CARRY EXCESS FUND BALANCES, THEY HAVE POLICIES, AND THEY'RE COUNCIL APPROVED.
WE HAVE THAT POLICY FOR THE GENERAL FUND, BUT WE DO NOT HAVE IT FOR THESE INTERNAL SERVICES.
THIS IS GOOD THAT WE'RE DOING THIS.
[02:55:01]
IT'S GOOD.AS THEY SAY AT A&M, IT'S GOOD FOR ALL.
IT SHOULDN'T BE SOMETHING THAT IS RUSHED INTO.
IT'S SOMETHING THAT DESERVES A LOT OF DISCUSSION, ESPECIALLY WHEN WE'RE COMING UP TO AN ELECTION.
AND I DON'T THINK THAT WE NEED TO RUSH INTO SETTING A POLICY TODAY.
BECAUSE THAT'S THE PROBLEM WHERE WE ARE TODAY, BECAUSE OF NOT LOOKING AT IT.
WELL, IT'S CAN WE LET GLENN GET INTO HIS REPORT? LET'S GET, BECAUSE I'VE GOT A LOT OF COMMENTS AROUND THOSE LINES.
ONE QUICK THING, IN HEARING BRIAN SAY IT 15 YEARS AGO, THERE WAS NOTHING IN PLACE, AND IN HEARING THAT YOU WENT BACK 10 YEARS, THAT REALLY JUST GIVES CREDENCE TO WHAT WE'RE TALKING ABOUT.
IF IT'S 15 YEARS WHERE IT WASN'T ANYTHING AND THEN YOU WENT BACK 10 YEARS WHERE HE'S BEEN ABLE TO BUILD THAT SLUSH BOND.
I'M NOT CALLING IT A SLUSH BOND.
I CAN'T SPEND THIS MONEY WITHOUT YOU.
I'M JUST SAYING THAT MATHEMATICALLY HE'S, BRIAN WAS HERE 15 YEARS AGO WHEN THERE WAS NO RESERVES LIKE THIS.
HE'S BEEN ABLE TO BUILD THAT SO THAT WHEN THINGS LIKE STORMS OR WHATEVER COME UP, THEN YOU WERE ABLE TO TAKE CARE OF THE RESIDENTS HERE.
SO THE 10 YEARS THAT YOU WENT BACK, I SEE THAT POSITIVELY.
WELL, WE SHOULD HAVE HAD A POLICY.
AND THEN, YOU KNOW, WE COULD HAVE DONE IT.
WE AUDITED THE INTERNAL SERVICE FUNDS AND FOCUSED ON THE GARAGE FUND AND THE CENTRAL SERVICES FUND. THE SCOPE OF OUR AUDIT WAS TO GO BACK 10 YEARS AND ANALYZE THE INTERNAL SERVICE FUNDS FOR COST SAVING MEASURES.
ACCORDING TO BEST PRACTICES, THESE FUNDS SHOULD OPERATE ON A COST REIMBURSEMENT BASIS IF THERE IS NO CITY COUNCIL APPROVED POLICY.
THIS MEANS THESE FUNDS SHOULD NOT ACCUMULATE EXCESSIVE FUNDS.
HOWEVER, YOU KNOW, WE TURN TO, WHEN WE GO TO APPENDIX 1, WE'VE GOT, LIKE, WE'VE MAINTAINED A MILLION DOLLARS AVERAGE AS EXCESS FUNDS OVER THE PAST 10 YEARS. SIMILARLY, IN APPENDIX 2, IN THE 10TH YEAR, EXCUSE ME IN THE FIRST YEAR TO THE 10TH YEAR IT GREW EVERY YEAR THE SURPLUS UH 391 PERCENT SO UH AND THE ROOT CAUSE OF OVER THE LAST 10 YEARS IS THE ABSENCE OF CITY COUNCIL APPROVED POLICIES FOR HANDLING THE YOU KNOW THE EXCESS INTERNAL SERVICE FUND BALANCE WITHOUT THESE APPROVED POLICIES WE COULD BE ACCUSED OF BEING NON TRANSPARENT BECAUSE YOU HAVE PUBLIC SCRUTINY PLAYING A PART IN THIS. PUBLIC SCRUTINY CAN SAY, HEY, WHY ARE OUR TAXES GOING UP WHEN YOU HAVE THIS MONEY OVER HERE? THEY CAN SAY YOU'RE NOT BEING TRANSPARENT, YOU'RE NOT BEING COST EFFICIENT.
VERY IMPORTANT THAT WE GET A POLICY IN PLACE.
AND WE JUST NEED TO MAKE SURE FOR PUBLIC SCRUTINY'S PLACE THAT WE NEED TO COMMUNICATE TO CITY COUNCIL EVERY YEAR THE AMOUNT OF EXCESS FUNDS IN THE ATTORNEY.
WE DON'T JUST NEED TO ASSUME THAT THEY'RE GETTING IT FROM THE BUDGET OR FROM THE ACT, BECAUSE I DIDN'T.
I THINK WE ALSO NEED TO MAKE SURE WE'RE NOT OVERCHARGING THE DEPARTMENT TO BUILD EXCESS FUNDS.
TRUE, THAT COMES IN THE BUDGETING.
THAT COMES IN THE BUDGET TIME WHEN THEY CALCULATE WITH THOSE CHARGES.
WE CHANGE THAT CALCULATION EVERY YEAR BASED ON THE PRIOR YEAR AND ANTICIPATED EXPENSES AND YOU KNOW BEFORE GLENN FINISHES THIS IS NOT NEW TO BE BROUGHT UP.
I REMEMBER IN COUNCIL MEMBER ROB'S FIRST TERM HER AND HER HUSBAND, AS YOU RECALL, WE WEREN'T EVEN BALANCING OUR CHECKBOOK.
WE WERE SO SCRAPING FOR MONEY, AND THAT WAS THE CONCERN THAT YOU GUYS HAD BACK THEN. SO THIS IS KIND OF A CONTINUATION OF YOUR WORK ALONG THOSE AREAS.
AND AS YOU REMEMBER BACK THEN, TOO, THE CONCERN WITH THE FINANCE COMMITTEE AND EVERYTHING ELSE WAS THAT WE WERE REALLY SKATING ON THIN ICE IN A LOT OF THESE AREAS.
SO I THINK IT'S, AND GLENN RECALLS VERY WELL, THE TIMES OF US NOT BALANCING OUR CHECKBOOK.
WE DIDN'T RECONCILE OUR CHECKBOOK BACK THEN.
WHICH WE ARE, EXCUSE ME, COUNCIL MEMBER ROTH HELPED SOLVE THAT SITUATION.
YOU KNOW, WE JUST, WE GOT TO DO A LITTLE BIT BETTER JOB
[03:00:01]
ON THE BUDGETING BECAUSE IT CONSISTENTLY GREW IN THE YEAR.THIS GROWTH IN EXCESS FUNDS, IS THAT THE SAME THING AS A RESERVE THAT YOU COULD PUT A NUMBER OF DAYS ON? SURE.
SO MY QUESTION IS, WHAT DOES THE AMOUNT OF OVERAGE THAT WE HAVE RIGHT NOW, HOW DOES THAT TRANSLATE INTO NUMBER OF DAYS? IT DEPENDS ON THE FUND WHICH IT ORIGINATES FROM BECAUSE THE FUNDS HAVE THEIR OWN SPECIFIC COST.
MY QUESTION WE'RE GETTING BACK TO IS, AS WE JUST SAID EARLIER, IT APPEARS THAT BEST PRACTICE IS LIKE 90 DAYS.
SO WHERE ARE WE RIGHT NOW? IT DEPENDS ON MUNICIPALITIES.
FOR US RIGHT NOW, SO FOR THE FY26 BUDGET, THE GARAGE IS BUDGETED AT 12%.
THE HEALTH INSURANCE FUND IS BUDGETED 12%, SO YOU'RE ABOUT A MONTH AND A HALF.
SO DAYS WISE, YOU'RE RIGHT ABOUT 45 DAYS, LET'S SAY.
THE HEALTH INSURANCE FUND, AS WE TALKED ABOUT, IS WHERE WE'RE HIGHEST.
IT'S AT 68%, BUT WE'RE SELF INSURED FOR THAT.
AND WE KNOW THAT THAT'S OUR AREA WE FEEL MOST PASSIONATELY ABOUT, THAT THAT FUND BALANCE IS ABSOLUTELY NECESSARY TO PROTECT THE CITY.
THE CENTRAL SERVICES WHICH INCLUDES TECH AND FACILITIES AND MAILROOM IS AT 24% SO IT'S RIGHT AT 90 DAYS.
WORKERS COMPENSATION IS AT 74% BUT THAT IS NOT A MAINTENANCE FUND.
OKAY, SO IT IS BASED ON ACTUAL COSTS.
IT'S NOT LIKE WE DON'T HAVE NO EMPLOYEES THERE, THAT SORT OF THING.
IT'S BASED ON CLAIMS AND SO YOU'RE KIND OF HEDGING ON THOSE CLAIMS AND MAKING SURE YOU HAVE ENOUGH IS YOU NEED TO BE ABLE TO PAY THOSE WORKERS' COMPENSATION CLAIMS. CASUALTY AND LIABILITY INSURANCE, WE'RE AT 24%, SO AT 90 DAYS.
AND SEPARATION PAY, WE'RE AT ZERO DAYS BECAUSE WE JUST BUDGET FOR WHAT WE'RE EXPECTING.
WE'RE EXPECTING TO SPEND IT ALL, ESSENTIALLY.
WE HAVE DONE A COMPARISON WITH REGIONAL CITIES IN THE GALVESTON AREA.
WE LOOKED AT LEAGUE CITY, PASADENA, PEARLAND, AND FRIENDSWOOD.
AND WE ARE ACTUALLY UNDER WHAT MOST OF THEM ARE DOING.
SO IN THE VARIOUS CITIES THEY DON'T KEEP 120 DAYS IN THEIR GENERAL FUND.
BUT I DID LOOK AT HOW THEY WERE DOING THEIR FUND BALANCES.
THOSE ARE ALSO NOT COASTAL CITIES.
SO HARD TO FIND A COASTAL CITY.
I THINK A REALLY GOOD EXAMPLE JUST FROM THIS WEEK IS Y'ALL MAY OR MAY NOT KNOW, BUT THERE'S A GENERATOR THAT RUNS OUR ELEVATOR, OUR VERY IMPORTANT SINGLE ELEVATOR IN THE CITY, THAT IS OBVIOUSLY LEGALLY REQUIRED FOR ACCESS, BUT ALSO WE ENJOY IT WHEN WE DON'T HAVE TO GO UP TO THE FOURTH FLOOR.
VIA THE STAIRS, BUT IT RUNS BY A GENERATOR THAT'S 40 YEARS OLD, AND FACILITIES WAS JUST TOLD IT NEEDS TO BE REPLACED PRONTO, AND THAT WAS NOT SOMETHING THAT WAS ON OUR RADAR.
AND SO THAT FACILITY, THAT CENTRAL SERVICES FUND, WE KNOW IS GOING TO HAVE FUND BALANCE THAT COUNCIL CAN ALLOCATE TO THAT PURPOSE SO THAT WE CAN MAKE SURE WE HAVE A WORKING ELEVATOR.
AND SO THAT'S JUST ONE EXAMPLE FROM THIS WEEK.
AND I THINK WE MAY I THINK DURING THE BADRA PROCESS THIS YEAR WE DID DEMONSTRATE THAT WE HAVE IN OUR INTEREST AS WELL TO MANAGE THESE FUND BALANCES TO THE BENEFIT OF ALL THE SERVICES CAN WE PLEASE LET GLENN FINISH LIKE WE'RE NOT LETTING GLENN FINISH WE CAN GET INTO THE I JUST NO, IT IS.
GO AHEAD, GLENN, AND LET US KNOW WHEN YOU'RE THROUGH.
OUR FINDING IS THAT OVER THE LAST 10 YEARS, WE DIDN'T HAVE A CITY COUNCIL APPROVED POLICY, AND THESE EXCESS FUNDS WERE MAINTAINED OR GREW IN OUR TWO INTERNAL SERVICE FUNDS, THE GARAGE AND THE CENTRAL SERVICE.
AND UH YOU KNOW, I FEEL LIKE WE'VE SUFFERED PUBLIC SCRUTINY OVER IT AND WE NEED TO HAVE A CITY COUNCIL APPROVED POLICY THAT BEST PRACTICES AND END IT.
SO WHAT I HEAR YOU SAYING, GLENN, IS THAT FIRST OF ALL, WE NEED TO HAVE A POLICY, WHICH WE DO NOT.
SECOND OF ALL, AS YOU MENTIONED, THAT YOUR HISTORICAL DATA AND YOUR CALCULATIONS ARE SHOWING THAT WE NEED TO POSSIBLY CONSIDER MORE THAN ONE MONTH.
FUND BALANCE FOR THESE FUNDS? WELL, YOU KNOW, WE WERE TRYING TO PUT THAT IN OUR REPORT THE FIRST GO AROUND AND WE HAD SOME PROBLEMS WITH THE DEPUTY CITY MANAGER DIDN'T WANT IT.
SO, WE WANTED TO STAY WITHIN THE CONFINES OF OUR AUDIT AND WE DIDN'T WANT TO OFFEND ANYBODY, BUT WE DID DO ALL THE WORK AND IT COMES OUT TO ABOUT THREE MONTHS.
YEAH, ABOUT THREE MONTHS OF FUND BALANCE.
EXCEPTIONS OF THE WORKERS' CONFIDENCE.
THOSE ARE REALLY DIFFERENT TYPES OF FUNDS.
CORRECT ME IF I'M WRONG ON THIS.
[03:05:02]
WHAT YOU DID NOT FIND IS ANY ACTS OF MISMANAGEMENT OR MISHANDLING OF FUNDS OR MISREPORTING FUNDS IN ANY WAY.MISREPORTING? NO, I MEAN MISMANAGEMENT, YOU KNOW, THAT WOULD WE CAN'T GET INTO INTENT OR INTENTIONAL OR ANYTHING LIKE THAT.
YOUR MISMANAGEMENT IS WE JUST NEED A POLICY.
GLENN, WHAT SPECIFICALLY WOULD YOU THINK THAT HAVING 10 YEARS OF EXCESS FUNDS, WHAT SPECIFICALLY WOULD BE SOME THINGS THAT THAT WOULD AFFECT? TAKING OUT THAT WE DON'T HAVE A POLICY IN PLACE.
THE NUMBER ONE THING IS THE TRANSPARENCY BECAUSE IN ALL MY RESEARCH ON THIS, AND I DID QUITE A BIT, A LOT OF THE DIFFERENT TAXPAYERS IN OTHER CITIES HAD A REAL PROBLEM WITH TRANSPARENCY, AND ESPECIALLY WHEN THEIR TAX RATES WERE GOING UP.
SO WHAT I READ IS THEY FELT LIKE IT WAS NON TRANSPARENT, AND ONLY THE CITY STAFF KNEW ABOUT IT.
SO WE HAD HAD THE POLICY IN PLACE OR CAPS IN PLACE, IT COULD AFFECT OUR GENERAL BUDGET PRESENTATION.
AM I UNDERSTANDING THAT RIGHT? IT COULD HAVE.
SO AT THE END OF THE, SO WHEN WE HAVE THE LAST TWO YEARS THAT WE'VE HAD THE BUDGET PRESENTATION, BUDGET VOTING ON VOTING AND SETTING OUR BUDGET AND OUR TAX RATE, WOULD THOSE EXCESSES STAYING IN THOSE FUNDS HAVE AFFECT HOW WE PRESENT IT TO THE PUBLIC? OF WHY A CERTAIN TAX RATE IS SUPPORTED OR NOT SUPPORTED.
YEAH, WE COULD HAVE, YOU KNOW, IF WE WOULD HAVE HAD THE POLICY, WE MAY HAVE STAYED MORE WITHIN THE CONFINES OF A BREAK EVEN POINT.
IS THAT THE QUESTION? BECAUSE, YEAH, I MEAN, ISN'T THAT WHAT IS THE STATEMENT? IT COSTS BASIS ANALYSIS.
WELL, THE BREAK EVEN POINT, THE WAY GLENN SAYS IT, WITHOUT A POLICY WOULD HAVE BEEN WE DON'T HAVE ANY FUND BALANCES.
THAT WOULD BE YOUR BREAK EVEN POINT IF YOU HAD NO FUND BALANCES.
IT'S BEEN THE PRACTICE OF THIS CITY AND PRIOR TO ME AND EVERYBODY ELSE THAT YOU DO HAVE THESE FUND BALANCES, AND YOU HAVE THEM FOR VERY SPECIFIC REASONS.
SO IT'S KIND OF A I DON'T NECESSARILY THIS IS WHERE I DISAGREE WITH GLENN.
HE'S BASING HIS AUDIT BASED ON NO FUND BALANCE WHEN I THINK IT'S AND I THINK EVEN GLENN WILL AGREE WE SHOULD HAVE THEM.
AND THE ISSUE IS WE DON'T HAVE A POLICY ON THAT.
OF COURSE IT AFFECTS YOUR BUDGET, BO.
EVERYTHING WE DO AFFECTS THE BUDGET, EVERYTHING.
WHILE GLENN WAS WORKING ON THIS, HE COULDN'T DO HOT TAX AUDITS, AND WE HAD TO DO A TRANSFER IN THIS BUDGET OF $106,000 TO PAY FOR GLENN TO DO THIS WORK BECAUSE HE WASN'T COLLECTING MONEY FROM THE PARK BOARD TO DO HOT AUDITS.
EVERYTHING AFFECTS OUR BUDGET, EVERYTHING WE DO.
IT'S JUST A MATTER OF HOW YOU GUYS WANT TO DO IT AND WHAT RISK YOU WANT TO TAKE AND WHAT POLICIES YOU WANT TO ADOPT, AND WE'RE HERE TO DO THAT.
RESERVES AND YOU'RE USING IT INTERCHANGEABLY WITH BALANCE AT THE END.
IS THAT WHAT I'M HEARING? YEAH, I MEAN, NOBODY BUDGETED RESERVES IN ANY OF THIS.
THESE RESERVES ARE A RESULT OF EITHER UNDERSPENDING, SALARY LAPSE, THINGS ALONG THOSE LINES.
DAVID SMITH DOESN'T SIT THERE AND SAY, OKAY, I'M GOING TO CHARGE X NUMBER OF DOLLARS FOR THIS VEHICLE, AND I'M GOING TO PUT 10% ON TOP OF IT BECAUSE I WANT TO BUILD A FUNHOUSE.
I'M TALKING ABOUT THE RESERVE TARGET THAT WE WERE TALKING ABOUT EARLIER, THE 90 DAYS.
AND YOU'RE GOING TO NATURALLY FLOAT TO THAT.
THAT'S A RESERVE, BUT, YOU KNOW, AT THE END OF THE YEAR, IT'S STILL THERE.
IT MAY LOOK LIKE SOMEBODY, LIKE A SLUSH FUND.
SLUSH FUND, THIS, IT IS A RAINY DAY FUND.
THAT'S WHAT YOU MEAN, IT'S A HURRICANE.
THAT'S THE REASON THERE'S TWO WORDS FOR THE SAME THING, I THINK.
SLUSH FUND HAS NEGATIVE CONNOTATION, RAINY DAY FUND.
SLUSH FUND WOULD ALSO INDICATE THAT WE'VE ACTUALLY SPENT THIS MONEY ON SOMETHING AND WE HAVE IT.
AND IT ROLLS OVER TO THE NEXT YEAR'S BUDGET AND MAINTAINS ITS 90 DAY STATUS AT THE END OF THAT FISCAL YEAR AND THEN SO ON AND SO ON DOWN THE LINE.
WHAT ACTUALLY BUILDS AND WHERE IT DOES HAVE AN EFFECT TO GET BACK TO THOSE QUESTION IS IT HAS AN EFFECT ON OUR TAX RATE AS WE COULD LOWER OUR TAX RATE WITH THE EXCESS RESERVES.
WHEN YOU LOOK AT SOMETHING THAT HAS BUILT OVER 10 YEARS AND THE THING THAT TRIGGERED ME ON GOING FURTHER ANALYSIS ON THIS IS IT ALSO HAS A $30,000 INTEREST PAYMENT.
WELL, SHOULD THAT STAY IN GARAGE? THEY'RE BASICALLY MAKING MONEY OFF OF OTHER DEPARTMENTS.
OR SHOULD THAT BE TRANSFERRED TO THE GENERAL FUND, WHICH IS OUR RAINY DAY, OUR EMERGENCY FUND? OR AS IT IS NOW,
[03:10:02]
IT WAS STAYING IN THE GARAGE DEPARTMENT.SO THAT'S SOMETHING THAT HAS TO BE ADDRESSED IN THE POLICY AS WELL.
THAT'S HOW I BACK ENDED INTO THE GARAGE WHEN I SAW THAT INTEREST INCOME.
BECAUSE WHY WOULD THE GARAGE BE MAKING INTEREST INCOME OF 30,000? AND I JUST LOOKED AT THE QUESTION, WHAT INTEREST RATE WOULD THAT BE ON $1 MILLION? AND IT WAS LIKE 3.4%.
IT'S LIKE, WHOA, WHY IS THAT SITTING IN THE GARAGE FUND? WHY ARE WE OVERCHARGING OTHER DEPARTMENTS? I DON'T KNOW, THANK YOU, YOU'RE NOT OVERCHARGING.
IT'S A MIXTURE OF, CAN WE ALL AGREE, IT'S A MIXTURE OF MAYBE THE RATES WERE HIGHER, MAYBE IT WAS UNDERSPENDING, CAN WE ALL JUST AGREE INSTEAD OF JUST, YOU KNOW, IT'S A LITTLE BIT OF EVERYTHING, I MEAN IT'S ALL KIND OF BAKED INTO THE PART OF THE REASON THE MONEY STAYS IN THAT FUND IS ALSO YOUR CHARTER REQUIREMENTS OF HOW THAT FUND SAY AGAIN.
IT'S PART OF YOUR CHARTER REQUIREMENTS TOO.
NO, YEAH, NOT INTEREST INCOME.
FROM GLENN'S PERSPECTIVE OF THE 90 DAYS.
AND THE REASON WHY I DO IS BECAUSE WE GET INTO THE 120 DAYS.
WE GET INTO START CHEWING THAT DOWN IN CASE OF AN EMERGENCY.
THE DEPARTMENTS ALREADY HAVE THEIR OWN RESERVE FUND, RIGHT, FOR THE 120 DAYS ON THE GENERAL FUND RESERVE.
MOST OF THE FUNDS FROM ENTERPRISE FUNDS THAT PAY, ALL THESE DEPARTMENTS THAT PAY.
THAT PAY INTO THE GARAGE OR PAY INTO CENTRAL SERVICES.
THEY HAVE THEIR OWN RESERVE THAT IF WE HAVE TO GO INTO THEIR RESERVE, I ALMOST LOOK AT IT AS DOUBLE DIPPING.
I DON'T WANT TO SAY DOUBLE DIPPING, BUT IT'S THE ONLY THING I CAN THINK OF AT THE MOMENT.
BUT TO HAVE ADDITIONAL 90 ON 90, BY THE TIME WE DRAIN EVERYTHING, YOUR GARAGE STILL HAS 90 DAYS MORE EXTRA, IF YOU GET WHAT I'M SAYING.
WE GO THROUGH THE GENERAL FUND RESERVES.
WE GO THROUGH GENERAL FUND RESERVES, WE GO THROUGH ENTERPRISE FUND RESERVES.
WE MIGHT HAVE MORE, RIGHT? IT'S EXTRA PADDING.
IT'S EXTRA CUSHION THAT YOU HAVE, WHICH I'M NOT OPPOSED TO, BUT WE'RE ALREADY TALKING ABOUT A SITUATION IN WHICH IF WE'RE GETTING TO THE POINT WHERE WE HAVE TO DRAIN ALL OF OUR RESERVES, THERE'S GOING TO BE EXCESS DRAIN.
AND BY THAT POINT, THE 90 DAYS OF FUND BALANCE IN THE GARAGE IS PEANUTS IN COMPARISON TO THE TOTAL GENERAL FUND 120 DAYS.
THAT'S ASSUMING A DISASTER SITUATION.
WELL, I MEAN, THAT'S WHAT WELL, NO.
IT'S ALSO, AS SHEILA POINTED OUT, IT'S ALSO FOR SMOOTHING.
I CAN TELL YOU 15 YEARS AGO, IF THE GENERATOR WENT ON THE ELEVATOR, THIS WOULD BE A COUNCIL ITEM THAT WE'D BE SITTING HERE DEBATING WHETHER OR NOT WE'RE GOING TO FIX THE ELEVATOR OR NOT.
AND WE'RE SEEING THAT EXACTLY WITH GAS PRICES, WITH THE PRICE OF ABSOLUTELY.
YOU KNOW, THE WE SHOULDN'T EVER SEE A BUILDUP OF EXCESS FUNDS IF OUR TARGET IS 90 DAYS RESERVED.
THE REAL NUMBER MAY GO UP BECAUSE OF THE LEVEL OF EXPENSES THAT INCREASE EVERY YEAR TO EACH APARTMENT BECAUSE THAT 90 DAYS IS BASED ON THEIR BUDGET.
SO THE REAL NUMBER MAY GO UP, BUT THE NUMBERS IT WOULDN'T EVER BUILD UP IF WE SAY 90 DAYS IS IT.
SO IF SOME MONEY COMES IN AT THE END OF THE YEAR OVER 90 DAYS, WELL, WE'LL HAVE TO FIGURE OUT WHAT TO DO WITH THAT.
BUT IN THE OTHER CASE, THOUGH, IF IT IS RIGHT AT 90 DAYS, IT ROLLS OVER AND WE DO IT AGAIN NEXT YEAR.
IS THAT RIGHT? THAT'S CORRECT.
YOU KNOW, IN MY MIND, IT BOILS DOWN TO THIS.
DO WE NEED A POLICY TO MANAGE THIS? YES, WE DO.
THE OTHER TWO QUESTIONS COME, WHEN SHOULD WE ENACT THIS POLICY AND WHAT THE AMOUNT SHOULD BE THAT WE INCLUDE IN THE FUND BALANCES.
AND THOSE ARE THE QUESTIONS THAT'S BEFORE COUNCIL.
SHEILA HAS RECOMMENDED IT'S ITEM 11GG ON OUR WORKSHOP, I MEAN ON OUR REGULAR AGENDA, FOR A ONE MONTH.
FUND BALANCE, AND SHE HAD JUST IN THOSE TWO FUNDS, I THINK IT'S CENTRAL SERVICE AND GARAGE, BUT SHE HAS OTHERS FOR THE OTHER FUNDS ON THAT.
AND THAT'S GOING TO BE ON OUR BOAT TONIGHT.
SO I'VE REALLY POURED A LOT OF TIME AND EFFORT, AND THIS IS SOMETHING THAT I REALLY HAVE GOT A GRASP ON OVER THE LAST, WHAT, SIX MONTHS WHEN WE.
IT'S SOMETHING I'M EXTREMELY PASSIONATE ABOUT, SO PLEASE JUST INDULGE ME A LITTLE BIT.
SO, YOU KNOW, GLENN, I ASKED GLENN, I GUESS, YESTERDAY WHO HE SPOKE TO, AND HE PUT IN A REPORT, GFOA, COMPTROLLER.
[03:15:04]
THESE ARE SOME OF THE STATE AUDITORS.AND THE STATE AUDITOR'S OFFICE.
THESE ARE REALLY GOOD GOVERNMENTAL RESOURCES.
MARIE AND I ACTUALLY HAD AN OPPORTUNITY TO TALK TO SOMEONE FROM THE GFOA.
FOR GUIDANCE AND, YOU KNOW, RESERVES AREN'T BAD.
LIKE, I JUST WANT EVERYONE TO UNDERSTAND, I'M NOT HERE TO RAID THE RESERVES OR DO ANY OF THAT STUFF.
RESERVES ARE GOOD, AND, YOU KNOW, IT'S COMMENDABLE THAT WE HAVE SOME, BUT THE PROBLEM, AND I THINK WE ADDRESSED THIS SIX MONTHS AGO, LAST 10 YEARS, THE FUND BALANCE NEVER DROPPED BELOW 500, DIDN'T GO ABOVE 1.5 MILLION, I THINK IT WAS AT 1.6 AT ONE TIME.
THAT BREAK EVEN POINT WOULD HAVE BEEN THAT MILLION DOLLAR MARK.
THAT'S KIND OF WHAT I WOULD BE MANAGEMENT POLICY TO DO THAT, FINANCE POLICY, ET CETERA.
SO, YOU KNOW, ONE OF THE THINGS I HAVE AN ISSUE WITH WITH THIS FUND BALANCE POLICY IS, YOU KNOW, LIKE I WANT TO GIVE YOU ALL MORE THAN 30 DAYS, MAYBE NOT AS MUCH AS GLENN WITH THE 90 DAYS, BUT YOU KNOW LOOKING AT PROBABLY 50 DIFFERENT MUNICIPALITIES AND DIFFERENT KINDS OF FUNDS THAT THEY HAVE ON TOP OF THEIR GENERAL FUND RESERVES.
LIKE FORT WORTH WAS A GREAT EXAMPLE THAT I PLUCKED.
NOT A COASTAL CITY, I UNDERSTAND, BUT HEY, I'VE GOT TO THROW MY HAT OFF TO THE MAYOR HERE.
THEY HAVE 25%, AND I THINK WE NEED TO GET AWAY FROM THE DAYS.
I KNOW IT'S IN OUR CHARTER FOR THE DAYS, BUT BASED ON PERCENTAGES, I'M SURE CHILA WOULD LIKE PERCENTAGES BETTER THAN DAYS.
MY GOAL IS TO MAKE THIS AS EASY AS POSSIBLE FOR THE LAYMAN TO LOOK AT OUR FUND BALANCE POLICIES AND SAY THIS IS WHERE THE MONEY IS GOING FOR US TO EXPLAIN TO THE PUBLIC WHO HAVE ISSUES WITH, I DON'T KNOW, BRIAN OR SOMEBODY, YOU KNOW, JUST TO MAKE IT EASIER FOR PEOPLE TO GRASP.
SO IN LOOKING AT SOME OF THESE.
AND SOME OF THE PAPERS, AND ESPECIALLY GFOA, THEY'RE A GREAT RESOURCE FOR ELECTED OFFICIALS AND GOVERNMENTS.
YOU KNOW, THEY WROTE A PAPER IN 23, AND THE PAPER WAS RETHINKING RESERVE FUND POLICIES.
AND THE FOUR REASONS WHY THEY SAY WE SHOULD RETHINK THE WAY THAT GOVERNMENTS DO RESERVE FUND POLICIES OR LOOK AT THEIR GENERAL FUNDS IS VOLATILITY.
WE'VE SEEN THAT IN GAS PRICES.
WE'VE SEEN THAT IN THE COST OF GOODS, WE SAW IT WITH COVID.
LOW TRUST IN GOVERNMENT AND EXPERTS, WHICH IS ONE OF THE THINGS THAT I WANTED TO PROMOTE IS BRINGING BACK TRUST IN GOVERNMENTS FOR THE LOCALS.
LOCAL GOVERNMENTS ARE BECOMING MORE CONSTRAINED.
WE SEE THAT WITH LEGISLATIVE THINGS.
WE'RE GOING TO BE MORE CONSTRAINED ON WHAT WE CAN DO WITH OUR BUDGETS, WITH OUR GROWTH, WITH TAX RATES, ETC.
AND TECHNOLOGY AND INFORMATION TECHNOLOGY MAKES IT EASIER TO DO THESE THINGS.
SO, FOR EXAMPLE, IN THE INTERNAL SERVICE FUNDS FOR MULTIPLE CITIES, WHAT THEY DO IS THEY HAVE A 10% TO 12% ACTUALLY, 12% TO 10% TARGET FUND BALANCE.
SO THAT'S YOUR TARGET FUND BALANCE.
YOU CAN ADJUST YOUR RATES FAIRLY EASILY ON YOUR TARGET FUND BALANCE.
LET'S SAY IT'S 10% AND YOU GO IN 3% HIGHER.
WELL, IF YOU CAN LOWER YOUR RATES 3% ROUGHLY BASED ON THE ESTIMATION FROM PREVIOUS YEAR, IT HELPS ADD THE CALCULATION.
IT MAKES IT EASIER FOR FINANCE INSTEAD OF TRYING TO FIGURE OUT CONVERTING DAYS, ET CETERA.
SO YOU HAVE THAT 10% AND YOU CAN LOWER RATES OR KEEP THEM THE SAME.
AND THEN IF YOU'RE LOWER, IF YOU DIP DOWN, 2%, YOU CAN RAISE THEM UP AN ADDITIONAL TWO ON TOP OF THE COST OF SO IT MAKES IT EASIER.
IT'S AUGMENTING OUR POLICIES THAT DO IT.
SOME OF THE OTHER FUNDS, LIKE, YOU KNOW, COULD YOU ANSWER IF THERE'S A METHODOLOGY FOR A LOT OF THESE, LIKE AN ACTUARIAL BASIS FOR A LOT OF THESE FUND BALANCES ON THE POLICY THAT WE HAVE? MORE SO ON THE HEALTH AND THE WORKERS' COMP SIDE.
ON THE OTHERS, IT'S JUST AGED EXPERIENCE.
ARE YOU TALKING ABOUT THE BALANCED TARGET? WELL, I MEAN, FOR UTILITY ENTERPRISE, I CAN SEE THE 90 DAYS TO 120 DAYS BECAUSE OF THE CHARTER REQUIREMENTS.
THEY'RE BASICALLY A SUPPORTIVE FUNCTION OF THE CITY AS WELL.
THE METHODOLOGY FOR THE ONE MONTH, LIKE WHERE DID YOU COME UP WITH ONE MONTH? AS I SAID, THAT'S JUST.
THE LEAST THAT I AM COMFORTABLE WITH.
I WAS READING THE ROOM, AND IT WAS THE LOWEST NUMBER THAT I AM COMFORTABLE WITH.
BUT, YOU KNOW, LIKE THE SPECIAL REVENUE FUNDS, AND THIS IS SOMETHING THAT I WAS LOOKING AT WHEN I WAS GOING THROUGH
[03:20:01]
OTHER FUND BALANCE POLICIES, THEY HAD PERCENTAGES.AND, YEAH, SOMETIMES SOME SPECIAL REVENUE FUNDS NEED HIGHER PERCENTAGES.
I THINK THAT WOULD BE RELATIVELY EASY TO, OR NOT EASY, BUT ACTUALLY BREAK DOWN KIND OF SPECIAL REVENUE FUNDS.
A LOT OF OUR SPECIAL REVENUE FUNDS, THOUGH, THE FUNDING SOURCE IS RESTRICTED AND THE EXPENDITURE.
SO HOT IS A GREAT EXAMPLE OF THIS.
IT'S ONE OF OUR SPECIAL REVENUE FUNDS.
IF WE DON'T SPEND IT, WHICH WE DON'T EVERY YEAR, IT'S GOING TO GO TO FUND BALANCE, AND WE CAN'T RESTRICT THAT BECAUSE THERE'S NO WAY TO SPEND IT ON ANYTHING.
AND SO ANY PLACE WHERE THE REVENUE IS A REVENUE SOURCE, WHERE YOU ARE LIMITED IN WHAT YOU CAN SPEND IT ON, YOU'RE JUST GOING TO HAVE GROWING BALANCES UNTIL WE COME UP WITH A PLAN FOR THAT.
SO THIS IS THE IT'S THE BACKSIDE OF IT WHERE WE SHOULD BE SPENDING THOSE MONIES AND HAVING SET THOSE RESERVES.
SO WE'RE NOT SITTING ON A PILE OF MONEY BECAUSE WHAT THAT DOES, GLENN COULD PROBABLY AGREE WITH ME.
I HAVEN'T TALKED TO HIM ABOUT THIS, BUT IT LEAVES A PERCEPTION FROM THE PUBLIC AND ALSO IS A MOVING TARGET FOR A POTENTIAL OF FRAUD OR MISUSE OR ABUSE.
WITH COUNCIL APPROVAL GIVEN OUR CHARTER RESTRICTIONS.
BUT IT GIVES THE HIGHER PERCENTAGE OF IT HAPPENING FROM A FINANCE PERSPECTIVE.
SO THAT'S SOMETHING THAT WOULD ALSO BE, COULD BE APPLIED TO THESE SPECIFIC FUNDS.
ONE THING I LOOKED AT, GLENN BROUGHT IT UP TO ME, IS AN ECONOMIC STABILITY FUND.
SO BASICALLY WHAT WE HAVE IS OUR CHARTER MANDATED 90 DAYS.
THE ECONOMIC STABILITY FUND, WHICH ACTUALLY THE LADY THAT MARIA AND I SPOKE TO, WAS THE FINANCE DIRECTOR OF ST.
PETERSBURG, FLORIDA, A COASTAL CITY.
THEY GOT HIT WITH A COUPLE HURRICANES IN A ROW.
THEY HAD A HARD TIME ACCESSING ADDITIONAL FUNDING.
AND THIS IS A ROUGH OUTLINE ON THE POLICY UNDER THE GENERAL FUND, WHERE IT SAYS DURING SUCH TIME UNASSIGNED FUND BALANCE IS BELOW THE 90 DAY MINIMUM, THE CITY WILL NO LONGER MAKE TRANSFERS.
WHERE'S THE OTHER PART OF THAT? SAID SOMETHING ABOUT THE CITY MANAGER WILL CREATE A PLAN TO PRESENT TO COUNCIL OVER A THREE OR FIVE YEAR PERIOD WHERE YOU BUILD IT UP.
SO BEFORE WE GET INTO AS THE CITY OF GALVESTON INTO OUR 90 DAYS, THE 30 DAYS OR THE 25% IS 90 DAYS, RIGHT? 25% IS 90 DAYS, YES.
SO TARGET FUND BALANCE FOR GENERAL FUND WOULD BE 33%, AND THEN YOU SET CEILINGS AND FLOORS.
SO A CEILING, LET'S SAY WE STACK AWAY LIKE WE HAVE NOW, RIGHT? OUR CEILING WOULD BE 120 DAYS.
WE PUT THAT TOWARDS CAPITAL INVESTMENT.
THIS IS JUST UNDER A POLICY THAT I'D LIKE TO SEE.
SO YOU HAVE CAPITAL INVESTMENT FOR THOSE FOUR EXTRA DAYS OR WHATEVER.
BELOW THAT, IT WOULD BE MONEY THAT WOULD NOT BE ABLE TO BE SPENT, JUST LIKE IT IS NOW, BUT UNDER A COUNCIL APPROVED MAYORAL EMERGENCY.
SOMETHING THAT ONLY COUNCIL COULD SPEND DOWN WITH COUNCIL APPROVAL UNDER CERTAIN CONDITIONS, WHICH ECONOMIC STABILITY, RIGHT? 2008 HOUSING CRISIS, WE GOT DOUBLE HIT ON THAT.
BUT 2008 HOUSING CRISIS, WHERE YOUR VALUES OR SOMETHING DON'T GO ABOVE A CERTAIN AMOUNT, WE CAN ACCESS THOSE FUNDS IF WE NEED IT FOR EMERGENCY PURPOSES.
AND THEN IF IT GOES BELOW THE TARGET BALANCE OF 20 SOMETHING DAYS, BEFORE IT HITS THE 90, THEN WE GET A PLAN FROM THE CITY MANAGER TO BRING THAT BACK UP TO ANOTHER AMOUNT.
THESE ARE THINGS THAT I'VE DONE A LOT OF RESEARCH ON, LOOKING AT OTHER FUND BALANCE POLICIES THAT I THINK WOULD BE, I WOULD BE ILL ADVISED AND VOTE AGAINST AN APPROVAL OF THIS PARTICULAR POLICY.
WE HAVEN'T HAD ONE FOR AT LEAST 10 YEARS.
WE HAVEN'T HAD ONE FOR AT LEAST 15 YEARS SINCE IKE.
WE HAVEN'T HAD ONE OF THESE PARTICULAR POLICIES.
THIS IS SOMETHING THAT MUNICIPALITIES ARE COMING TO TERMS WITH, FROM MY UNDERSTANDING, IN THE MOST RECENT FIVE YEAR SPAN SINCE COVID.
AND I THINK WE SHOULD GO OUTSIDE AND HAVE A THIRD PARTY LOOK AT AND DO AN ACTUARIAL STUDY AND GIVE US A GOOD POLICY AS A CITY COUNCIL TO SAY, OKAY, THE MAYOR MIGHT FEEL BETTER ABOUT 90 DAYS.
I MIGHT FEEL BETTER ABOUT 30 DAYS.
BUT WE CAN GO AND GET A THIRD PARTY TO DO IT.
[03:25:01]
WHAT THIS ALSO DOES IS IT HELPS WHEN WE ARE GOING THROUGH OUR AUDIT PROCESS, WHEN WE ARE GOING THROUGH THE BOND RATING PROCESS OF MAKING IT EASIER SO THE NUMBER CRUNCHERS AND THE ACTUARIALS LOOK AT IT AND SAY, OH, WOW, THIS IS A GOOD POLICY IN PLACE, AND IT GIVES US ADDITIONAL BENEFIT FOR OUR BOND RATING, WHICH WE'RE ALREADY AT, DOUBLE A PLUS, IT'S ONE OF THE HIGHEST IN THE STATE.I THINK ONLY 50 SOMETHING OTHER CITIES HAVE IT.
I THINK WE'RE ONE OF THE ONLY COASTAL CITIES.
BUT, YOU KNOW, WE WERE, SIX MONTHS AGO, TALKING ABOUT THIS, YOU KNOW, IT WAS VERY, WE WERE WORRIED THAT THAT WAS GOING TO HURT OUR BOND RATING AND THESE SORTS OF THINGS, AND IT TURNS OUT IT DIDN'T.
AND I THINK WE WANT, I THINK WE ALL WANT THE SAME THING.
MAYBE THE AMOUNTS ARE DIFFERENT, BUT I'M SAYING LET'S TAKE A THIRD PARTY.
AND HAVE A THIRD PARTY LOOK AT THIS, WHAT WORKS BEST FOR US? BECAUSE 25% FUND BALANCE AT THE MAX FOR OUR GENERAL FUND AIN'T GOING TO WORK FOR US, ESPECIALLY WITH OUR CHARTER REQUIREMENTS.
I MEAN, I DON'T HAVE ANY HEARD FROM FORT WORTH.
WELL, I MEAN, WE HAVE A LOT MORE VOLATILE REVENUE STREAMS THAN FORT WORTH DOES, TOO.
YOU KNOW, HEARING WHAT YOU'RE SAYING THERE, ALEX, IF WE MOVE IN THAT DIRECTION, THIS WILL BE FOR THE NEW COUNCIL.
I MEAN, WE COULD START THE PROCESS OF GETTING A THIRD PARTY, BUT THE NEW COUNCIL WE NEED TO, THIS, IN MY OPINION, IF WE'RE NOT, THIS IS JUST ME, IF WE ELECT TO NOT ADOPT THE POLICY THAT HAS BEEN RECOMMENDED, WE NEED TO MOVE FORWARD.
WE NEED TO HAVE A THIRD PARTY.
WE NEED TO HAVE THE FINANCE COMMITTEE WEIGH IN ON THIS.
THIS IS GOING TO BE THE NEW COUNCIL.
WE NEED TO LET THE NEW COUNCIL SET THIS.
SO WHY ARE YOU PUSHING SO MUCH FOR US TO ADOPT THIS POLICY THAT WAS PRESENTED? HOW DO YOU FIGURE I'M PUSHING THAT? WELL, EARLIER YOU SAID THAT, WELL, WE SHOULD ADOPT IT.
YOU HAVE IT ON FOR AN ACTION ITEM.
WELL, IT'S ON FOR AN ACTION ITEM BECAUSE THAT'S NOT EVEN TYPICAL.
TYPICALLY WE WOULD TAKE TWO WORKSHOPS.
IT'S ON FOR AN ACTION ITEM AND I DON'T WANT TO PUT WORDS IN.
SHEILA'S MOUTH BUT IT'S ON FOR AN ACTION ITEM BECAUSE THIS WAS A PRIMARY TOPIC THAT COUNCIL WANTED TO ADDRESS NOW IF COUNCIL WANTS TO MOVE FORWARD COUNT GLENN HAS PRESENTED HIS AUDIT FINDINGS AND BY THE WAY GLENN.
THANK YOU FOR THAT WE NEED TO GET YOU BACK ON REVENUE PRODUCING ITEMS RIGHT NOW BUT CHELA BROUGHT THIS FORWARD.
IT'S OPENED UP A WONDERFUL DISCUSSION, AND ALEX HAS EXPANDED ON THAT.
AND I THINK IF COUNCIL ELECTS TO MOVE FORWARD, IT WILL BE A COUNCIL VOTE TO DO MORE RESEARCH INTO THIS AND TO LOOK AT ALL THE OTHER FUNDS AND LOOK AT WHAT OTHER CITIES ARE DOING, HAVE A THIRD PARTY.
THIS IS GOING TO BE THE NEW COUNCIL.
I AGREE, AND I THINK WE ACTUALLY NEED TO EXPAND THE AUDIT.
TO ALL THE FUNDS TO LOOK AT WHAT IS GOING ON AND WITH WHAT WE FOUND WITH THE EXCESS FUNDS.
I DON'T THINK WE'VE DETERMINED THAT WE HAVE EXCESS FUNDS.
IT IMPLIES THAT THERE WAS A NEGATIVE COMPONENT TO, THERE WAS INTENT TO HAVE SOME KIND OF NON TRANSPARENCY AND TO HIDE FUNDS FROM THE STAFF, THAT IS NOT THE CASE HERE, IN MY OPINION.
YES, GLENN? EXCESS FUNDS IS THE TERMINOLOGY USED BY THE GFOA.
WELL, ALEX, THAT'LL BE SOMETHING TO BRING FORWARD THIS AFTERNOON AT OUR REGULAR MEETING.
LET'S SEE WHERE WE GO WITH THAT.
SO, CRAIG, IT'S I KIND OF AGREE WITH EVERYTHING WE'RE SAYING HERE.
IT'S JUST A MATTER OF MAKING SOME DEFINITIONS AND GOING THROUGH IT AND ALL THAT.
SO FROM MY PERSPECTIVE, I'D LIKE TO SEE COMING BACK WITH EACH ONE OF THESE FUNDS A PARTICULAR TARGET, YOU KNOW, HIGH AND LOW RISK LEVEL, LOW RISK, HIGH RISK TARGETS FOR EACH ONE OF THESE FUNDS AND METHODOLOGY OF HOW WE ARE ARRIVING AT THAT.
AND THEN THERE'S A WHOLE LOT OF FACTORS THAT GO INTO A REVENUE ANALYSIS FOR A PROJECT LIKE THIS.
I WAS PART OF ONE OF THESE ONE TIME BEFORE.
AND IT INCLUDES HOW YOUR REVENUE STACKS UP AND THE REVENUE VOLATILITY, YOUR EXPENDITURE, EXPOSURE.
THERE'S A WHOLE LOT OF CRITERIA.
IT'S COMPLETELY DIFFERENT FROM HEALTH INSURANCE.
SO THERE'S GOING TO BE A METHODOLOGY FOR ARRIVING AT THAT GOAL FOR EACH ONE OF THOSE.
AND I THINK THAT'S WHAT ALEX IS SAYING.
YEAH, AND WHAT PEOPLE HAVE COME TO ME ON BOTH SIDES OF IT, AND I THINK THERE'S BOTH SIDES OF IT ON THIS TABLE.
WE NEED TO TAKE THE FEAR AND TAKE, YOU KNOW, THE, YOU KNOW, I THINK I SAID LAST TIME IT WAS MY GRANDMOTHER HAD WHEELS, SHE'D BE A BICYCLE.
LIKE, WE'RE GOING TO DEAL WITH THESE PROBLEMS WHEN THEY COME UP, OR A CAR.
BUT, YOU KNOW, LET'S TAKE THE FEAR OUT
[03:30:02]
OF IT.LET'S, YOU KNOW, SHOW THE PUBLIC, HEY, WE'RE TAKING A SERIOUS LOOK AT THIS.
WE WANT TO, YOU KNOW, YOU CAN PUT YOUR INPUT IN.
YOU KNOW, I THINK WE I'M, YOU KNOW, WHEN YOU GO DOWN THE RABBIT HOLE, YOU KIND OF BECOME THE RABBIT SOMETIMES.
THAT WAS MY BEST PETER RABBIT IMPERSONATION.
AND IT'S SOMETHING I'M REALLY PASSIONATE IN, AND THEY MAKE A LOT OF SENSE TALKING ABOUT, YOU KNOW, AN EXCESS, IT'S A RAINY DAY FUND, ECONOMIC STABILITY FUND.
I THINK IT'S SOMETHING THAT'S I THINK IT'S HEALTHY TO LOOK AT IT.
I ALSO THINK THAT ULTIMATELY COUNCIL IS RESPONSIBLE IN THE EVENT OF SOMETHING, WHEN IT HITS THE FAN.
YOU CAN TAKE ALL THE INFORMATION YOU GET FROM THAT CONSULTANT AND COUNCIL CAN DECIDE AND WEIGH IN ON IT.
I THINK THAT'S A HEALTHY I THINK IT'S A GREAT IDEA.
THIS IS A REALLY COMPLEX SUBJECT.
WHEN PEOPLE SEE A COMPLEX SUBJECT LIKE THAT, IT'S DIFFICULT TO UNDERSTAND.
IT'S HARD TO PUT IT INTO 500 WORDS OR LESS.
PEOPLE WILL THINK THE WORST AND, YOU KNOW, IT'S JUST THE WAY HUMAN NATURE IS.
SO WE HAVE TO DO A BETTER JOB, I GUESS, OF YOU DO A BETTER JOB OF EXPLAINING IT IN TERMS PEOPLE CAN UNDERSTAND AND BUILD SOME TRUST.
GO BACK AND READ THE REPORTS AFTER IKE AND IN THE EARLY PARTS WHEN THE CITY HAD NO, I MEAN THIS IS NOT A BAD PROBLEM GUYS, THIS IS NOT EVEN A PROBLEM I DON'T THINK, BUT IT'S SOMETHING THAT YOU, IT'S GOOD MANAGEMENT PRACTICE TO HAVE A POLICY, YOU SHOULD HAVE A POLICY.
BUT TO GO TO SOMETHING YOU JUST SAID, IT'S HARD TO PUT IT IN 500 WORDS OR THAT.
OR LESS THAT THIS WAS SOMETHING THAT WAS DONE BY AI IS INSULTING TO OUR AUDIT.
I BELIEVE IT WAS ASKED IN A QUESTION AS TO WHETHER AI WAS USED IN SOME OF THIS.
YEAH, LET'S KNOW WHAT WE WOULD USE THAT FOR.
JUST BECAUSE IN ACCOUNTING THERE'S SPECIFIC AI PRODUCTS YOU'RE SUPPOSED TO USE, NOT GENERALIZED.
BUT THERE WAS A LOT OF RESEARCH THAT WENT INTO ALL OF THE DISCUSSIONS.
A LOT OF PEOPLE THAT WERE CONTACTED, EXPERTS IN THE FIELD, AND A LOT OF TIME, AND A VERY GOOD AUDIT RESULT.
MY LAST STATEMENT, WHAT WE WANT TO DO IS STRENGTHEN THE STABILITY THROUGH POLICY.
AND WE'RE NOT HERE TO CRITICIZE, ASSIGN BLAME, OR PUNISH ANYBODY.
WE'RE HERE TO SOLVE PROBLEMS. THERE'S NO BLAME TO BE SAID.
NO, WE'RE HERE TO ESTABLISH A POLICY THAT WOULD BE APPROPRIATE FOR US.
YOU HAVE MONEY, AND YOU HAVE TO DETERMINE HOW YOU WANT TO USE IT.
PUT TOGETHER YOUR THOUGHTS ON HOW YOU WANT TO BRING THAT FORWARD THIS AFTERNOON AND HOW YOU WANT THAT WORDED AND SEE WHERE WE CAN GO FROM THERE.
WE'LL PROBABLY HAVE TO DO AN RFP FOR THAT, BY THE WAY.
WE CAN DEFER AND THE NEW COUNCIL WILL PROBABLY DEFER THIS ITEM AND GO UP.
AND IT SHOULD BE THE NEW COUNCIL.
WE SHOULDN'T BE SITTING HERE TRYING TO FIGURE THIS OUT IN A SHORT TIME.
ONE OF THE GOOD THINGS ABOUT THE ECONOMIC STABILITY FUND, IT'S A SUB FUND WITHIN THE GENERAL FUND, AND IT'S THERE, AND IT CAN BE BUDGETED DIFFERENTLY.
IT CAN BE MANAGED DIFFERENTLY.
SO IT'S RIGHT UP THERE IN FRONT.
NO QUESTION ABOUT IT TO THE TAXPAYERS OR THE CITIZENS.
SO, YOU KNOW, THEN, YOU KNOW, OF COURSE, YOU WOULD KEEP A ZERO, AS CLOSE TO ZERO AS YOU COULD, ON THE INTERNAL SERVICE FUNDS BECAUSE IT'S RIGHT UP THERE FOR THE TAXPAYERS TO SEE.
WELL, AND I THINK, TOO, WE TALKED ABOUT THIS, TOO, THAT YOU WOULD TRY TO PUT, LIKE, RESTRICTED FOR THE 120 DAYS FOR THE INTERNAL SERVICE FUNDS SO THAT THE PUBLIC CAN SEE THAT'S WHAT WE'RE SAVING.
AS YOU ALL NOTED AS PART OF THE AUDIT, COUNCIL APPROVED A SEMI POLICY BACK IN THE EARLY 2010S WHEN GASB 54 CAME OUT, AND IT SET SPECIFIC RESTRICTIONS ON HOW FUND BALANCE IS CATEGORIZED, AND ALL ENTITIES HAD TO ACCEPT IT SO THAT THE REPORTING WOULD BE SIMILAR.
DEPENDING ON HOW COUNCIL WOULD VIEW THAT WITH THEIR NEW POLICY SETTING, SOMETHING LIKE THAT WOULD BE COMMITTED OR ASSIGNED FUND BALANCE, RIGHT? BUT THEN COUNCIL HAS TO TAKE SPECIFIC ACTION TO CREATE THAT FUND.
WE CAN'T CREATE THAT ASSIGNMENT OR THAT COMMITMENT.
IT WOULD REALLY BE TRANSPARENT.
AND THAT NEEDS TO BE VETTED BY THE FINANCE COMMITTEE AND THROUGH THAT WHOLE PROCESS OF DOING THAT.
AND IN ALL ACTUALITY WITH THE FINANCE COMMITTEE, SINCE I'M THE EX OFFICIO.
THEY HADN'T HAD ANY REVIEW EXCEPT FOR 10 MINUTES AT THE LAST MEETING, AND THERE WAS NO VOTE TAKEN.
[03:35:01]
VERY GOOD.ANY MORE THOUGHTS ON THIS? SHEILA, THANK YOU SO MUCH FOR YOUR OUTLINE.
WE'RE COMING UP ON ALMOST ONE O'CLOCK,
[Items 4.F & 4.G]
COUNCIL.WHAT I WOULD LIKE TO DO IS MOVE THROUGH ITEM 4FG.
I'D LIKE TO MOVE THROUGH F AND G.
AND THEN LET'S BREAK FOR EXECUTIVE SESSION ON THE ABSENT LUNCH.
ITEM 4F, UPDATE AND DISCUSSION OF THE MANAGEMENT OF DRAINAGE AT STEWART BEACH PARK.
THIS ITEM REALLY NEEDS TO BE DEFERRED UNTIL APRIL 9TH TO HAVE INPUT FROM THE PARK BOARD AND FROM BRIAN ON SPECIFICS ON THIS.
SO WE CAN PUT THAT ON FOR OUR APRIL 9TH AGENDA, IF YOU WOULD, PLEASE, THE JOINT MEETING.
ITEM 4G, UPDATE AND DISCUSSION OF THE PELICAN ISLAND BRIDGE.
LET ME TELL YOU WHAT I KNOW ABOUT IT.
I VISITED YESTERDAY OR THE DAY BEFORE WITH RANDY WEBER AT LENGTH ON THIS.
LET ME TELL YOU WHERE I FEEL WE ARE WITH THIS.
DAN BUCKLEY IS JOINING US, DEPUTY CITY MANAGER ON THIS.
WE ARE MOVING FORWARD HERE AT THE CITY WITH CONTINUING TO LOOK AT THE MOVING TOWARDS WORKING AS A PARTNER WITH THE TXDOT PROGRAM ON THE BRIDGE THAT HAS BEEN DESIGNED FOR MANY YEARS AND TXDOT'S BEEN PUTTING A LOT OF ATTENTION TO.
THERE HAS BEEN MEETINGS WITH RANDY WEBER, HAS HAD TWO MEETINGS NOW ON BRINGING STAKEHOLDERS TOGETHER TO TALK ABOUT THE POSSIBILITY OF AN ALTERNATIVE APPROACH.
AS YOU MAY KNOW, COUNCIL, THE WARRIS BOARD THEN HAS RECOMMENDED AND THEY HAVE VOTED ON TO APPROVE AND THEY HAVE FILED AN AMENDED PLAN WITH THE CORPS ON LOOKING AT THE FEASIBILITY OF A LAND BRIDGE THAT INCLUDES RAIL.
WHEN RANDY WEBER'S LAST MEETING HIS GROUP MET THEY CAME TO A CONSENSUS THERE THAT THEY WOULD MOVE FORWARD WITH A TWO PRONG APPROACH.
ONE, WITH THE WAY WE HAVE BEEN MOVING WITH TXDOT, AND SECONDLY, MOVING TOWARDS POSSIBLY A LAND BRIDGE, WHICH THE PORT HAS NOW FORMALIZED THROUGH THEIR ACTIONS OVER THERE.
FUNDING IS STILL QUITE A BIT OF, WE'RE QUITE, HAVE A DEFICIT FUNDING STILL ON THE BRIDGE THAT WE'VE BEEN WORKING WITH TXDOT ON.
I TALKED TO CONGRESSMAN WEBER TWO DAYS AGO, AND I REPEATED BACK TO HIM TO MAKE SURE I QUOTE HIM PROPERLY.
SO I WANTED TO MAKE SURE THAT I DIDN'T SAY SOMETHING HE DIDN'T AGREE WITH.
CONGRESSMAN WEBER STILL FEELS A TWO PRONGED APPROACH IS GOOD, THAT HE PERSONALLY FEELS THAT A LAND BRIDGE, INCLUDING RAIL, HAS A LOT OF MERIT AND WOULD LIKE TO SEE HOW THIS MOVES FORWARD WITH THE FEASIBILITY STUDY FOR THE LAND BRIDGE BEFORE HE MAKES ANY COMMITMENTS TO PUTTING ON FOR APPROPRIATIONS AT THE FEDERAL LEVEL.
SO THIS GO ROUND RIGHT NOW, HE'S HOLDING OFF ON THAT.
HE DID TELL ME THAT IF WE MOVE FORWARD AND WE.
SEE BY THIS TIME NEXT YEAR THAT THE LAND BRIDGE IS NOT FOR SOME REASON A FEASIBLE PROJECT.
HE'S VERY OPEN TO PUT IT BACK ON HIS APPROPRIATION TO ASK FOR NEXT YEAR.
AND THAT'S WHERE WE ARE ON THIS.
MARIE, DO YOU HAVE ANY OTHER COMMENTS ON THAT? NO, I THINK YOU SUMMARIZED WHERE WE ARE.
AND WE CONTINUE TO MOVE FORWARD.
I THINK THE CITY NEEDS TO STAY CONSCIOUS OF SOME OF ITS ACTIONS AS WELL.
THAT TXDOT, AS WELL AS THE ELECTED OFFICIAL ON THE TPC, WE HAVE BEEN BLINDSIDED BY MANAGEMENT'S ACTIONS THAT ALL PARTIES SHOULD HAVE BEEN INCLUDED IN.
AND I THINK THAT'S ESSENTIAL TO I NEED SOME DIRECTION FROM COUNCIL ON THIS.
[03:40:01]
WE WERE TOLD TO MARCH FORWARD AND TRY TO GET FUNDING FOR THE BRIDGE.I'VE GONE WHEREVER SALLY HAS POINTED ME TO BEG FOR MONEY FOR THIS BRIDGE AND TO GET SUPPORT FOR THIS BRIDGE.
THAT'S PART OF OUR LEGISLATIVE AGENDA.
IT'S PART OF OUR MARCHING ORDERS FROM COUNCIL.
IF COUNCIL WOULD LIKE TO HAVE A POINT PERSON THAT EVERYTHING MUST FUNNEL THROUGH FIRST BEFORE WE DO THAT OR THAT NO YOU KNOW LET ME KNOW I'M HAPPY TO FOLLOW ANY RULES YOU GUYS ADOPT I I I NEED A PLAYBOOK TO FOLLOW UH KIND OF LIKE THE POLICY FOR THE FUND BALANCES UH I NEED A POLICY IF THIS IS WHAT Y'ALL WANT TO DO IF YOU WANT TO RUN EVERYTHING THROUGH COUNCIL MEMBER ROB I'M HAPPY TO DO THAT BUT COUNCIL NEEDS TO DECIDE THAT AS A WHOLE THAT IN MY OPINION THIS NEEDS TO BE A COUNCIL ACTION ONE INDIVIDUAL WE'RE AT A POINT RIGHT NOW THAT THIS NEEDS TO BE A COUNCIL DIRECTION ON WHERE WE NEED TO HEAD ON THIS PERIOD.
BOB? I HAVE A THREE PART QUESTION.
THE FIRST ONE IS WHEN DO WE GET THE RESULTS BACK FROM THIS COST BENEFIT ANALYSIS THAT'S GOING TO BE HAPPENING? THE FEASIBILITY STUDY? I'M BEING TOLD IT PROBABLY WOULD BE A YEAR TO A YEAR AND A HALF.
AND SO IF WE GO A YEAR TO A YEAR AND A HALF, AND WE'RE GOING DOWN TWO PARALLEL PATHS.
SO CAN I STOP? SO WHAT THEY DID IS THEY SUBMITTED A LETTER.
WE'LL FIND OUT IN THREE MONTHS WHETHER THE CORPS WILL EVEN ACCEPT MOVING FORWARD ON A FEASIBILITY STUDY.
WHAT MY POINT WAS, RANDY WEBER IS NOT GOING TO SUPPORT ANYTHING UNTIL HE SEES THE RESULTS OF THAT STUDY.
I'M ASSUMING THEY'RE GOING TO DO THE STUDY.
IF THEY'RE NOT GOING TO DO THE STUDY, OUR PROBLEM IS OVER.
AND BY THE WAY, THE PORT IS NOT FILING A NEW 203 FOR THIS.
THEY ARE AMENDING THEIR CURRENT INVOLVEMENT WITH THE CORE.
AND THAT WILL KIND OF GREASE THE SKID.
SO THAT'S THE FIRST PART OF MY QUESTION.
BUT WE'LL HAVE AN ANSWER IN THREE MONTHS AS TO WHETHER THE CORE WILL EXPAND THE 203 OR NOT.
OKAY, SO LET'S JUST SAY THEY'RE GOOD WITH IT.
AND SO WE'RE GOING TO CONTINUE TO GO DOWN THIS PATH, THIS PARALLEL PATH FOR THE NEXT YEAR, YEAR AND A HALF, ACCORDING TO WHAT I HEARD BRANDY WEBER SAYING.
SO AT THAT POINT, IF WE DO THAT, WHERE ARE WE GOING TO BE WITH A TALL BRIDGE IN A YEAR AND A HALF? AND HOW MUCH MONEY WOULD WE HAVE SUNK INTO THAT IF THIS STUDY COMES BACK AND SAYS, WELL, YOU KNOW, THE LAND BRIDGE IS REALLY THE WAY TO GO? I DON'T KNOW.
SO, I MEAN, ARE WE GOING TO TAKE THE SAME PATH THAT I THINK IN THE SAME SAME LOOK AT THIS THAT RANDY WEBER IS DOING? THAT'S A VERY GOOD QUESTION.
AND I'M GOING TO ASK DAN TO COMMENT ON THAT.
MAYOR, WE HAVE OUR AGREEMENTS IN PLACE WITH THE LOCAL PARTICIPANTS.
THEY ANTICIPATE THE CITY SIGNING AN AFA SOON.
THE BRIDGE IS COMPLETED 60% OF DESIGN AND IT'S WELL ON ITS WAY TO 100% DESIGN.
I HONESTLY DON'T KNOW WHERE WE GO.
YOU KNOW, AS BRIAN SAID, OUR CHARGE WAS TO SEEK FUNDING.
THAT'S THE DIRECTION WE RECEIVED FROM COUNCIL.
THAT'S THE DIRECTION WE'VE BEEN GOING, TRYING TO ROUND UP FUNDING.
RELATED TO THE FAS, I THINK THEY WOULD HAVE TO BE RENEGOTIATED WITH THE LOCAL PARTICIPANTS.
THE PORT OF GALVESTON WAS ONE OF THOSE LOCAL PARTICIPANTS.
THEY SEEM TO WANT TO GO A DIFFERENT PATH NOW.
YOU KNOW, I DON'T THINK THAT THE STUDY HAS ANYTHING TO DO WITH A RAIL BRIDGE.
IT HAS TO DO WITH CLOSING THE CHANNEL WITH A LEVEE OF SOME TYPE.
AND THEN THAT WOULD BENEFIT AND ALLOW A RAIL BRIDGE.
POTENTIALLY A VEHICULAR BRIDGE ON TOP OF THIS LEVEE, BUT THAT'S NOT THE STUDY.
THE STUDY IS JUST TO CLOSE THE CHANNEL AND PUT IN A LEVEE, RIGHT? SO, I MEAN, THERE'S A LOT IN THE WORKS.
I WOULD HATE US TO LOSE ANY MOMENTUM.
WE SERVE AT THE WILLA COUNCIL.
COUNCIL HAS TOLD US AT THIS POINT TO SEEK FUNDING, AND THAT'S WHAT WE'VE BEEN DOING.
AND WE ARE TRULY WAITING FOR REDIRECTION FROM COUNCIL.
BECAUSE I THINK THAT WE NEED THAT.
IT SEEMS TO ME THAT WITHIN A YEAR, WE'LL BE 100% DESIGN DOCUMENTS.
SO IT COULD ALSO BE POSSIBLE THAT THAT REPORT WILL SAY THE LAND BRIDGE IS THE WAY TO GO.
AND IF WE DO THAT, THEN THAT MEANS ALL OF THIS WORK.
IT'S NOT GOING TO SAY IF IT'S THE WAY TO GO.
IT'S JUST GOING TO SAY IF IT'S FEASIBLE.
AND THE PROBLEM IS THAT INTEGRAL TO THE 100% COMPLETION IS THE CITY NEEDS TO START ACQUIRING RIGHT OF WAY.
[03:45:01]
NOW WE GET TO USE SOME OF OUR MONEY THAT WE HAVE FROM OUR LOCAL PARTICIPANTS FOR THAT, BUT IF WE ACQUIRE THE RIGHT OF WAY, IF WE DO VARIOUS THINGS AND WE SPEND THAT MONEY DOWN, AND WE DON'T GO THAT ROUTE WITHOUT MODIFIED AGREEMENTS WITH THE LOCAL PARTICIPANTS, THE CITY COULD POTENTIALLY HAVE TO PAY THAT MONEY BACK.OR THE LAND BRIDGE IS IN THE RIGHT OF WHERE WE JUST BOUGHT IT.
THE LAND BRIDGE, IF IT WAS TO BE PUT WHERE THE NEW BRIDGE IS GOING, IS OUTSIDE THE FEDERAL CHANNEL.
SO THE FEDERAL CHANNEL ENDS BY THE SULFUR DOCKS.
I DON'T KNOW IF YOU KNOW WHERE THAT IS.
IT'S EAST OF THE CURRENT BRIDGE.
AND THE ROUTE FOR THE NEW BRIDGE IS WELL WEST OF THE FEDERAL CHANNEL.
SO I THINK THEY'RE ASKING TO CLOSE THE FEDERAL CHANNEL, I DON'T KNOW WHERE IT WOULD BE.
THAT WOULD ALL BE PART OF THEIR STUDY, THE OUTCOME OF THEIR STUDY.
SO THEY COULD SAY, YEP, BUILD A LAND BRIDGE, WE'LL BUILD IT HERE, BUT WE HAVE RIGHT OF WAY THERE.
DAN, HAVE YOU HEARD ANYTHING FROM TECH START AT ALL? I HAVE NOT.
MARIE? TO THE COMMENT THAT BRIAN MADE, I AM NOT ASKING FOR THINGS TO BE FUNNELED THROUGH ME.
I AM THE REPRESENTATIVE AT THE TPC.
TXDOT AND I WORK HAND IN HAND AT THE TPC ON FUNDING AND LOOKING, TALKING TO THE MEMBERS OF THE TPC.
TXDOT HAS FELT BLINDSIDED BY THE CITY WHEN THEY'RE NOT TOLD.
THAT THE CITY IS GOING TO MEET, THAT THEY'RE MEETING WITH THE GOVERNOR'S OFFICE, AND THEY WOULD JUST LIKE TO BE MADE AWARE.
TXDOT FEELS UNCOMFORTABLE WHEN MANAGEMENT TELLS THEM THEY'RE NOT ALLOWED TO TALK TO ME.
WHEN AGAIN, AT THE TPC, WE ARE PARTNERS.
THE TPC WORKS ITS ELECTED OFFICIALS DEALING WITH ELECTED OFFICIALS.
YOU SERVED ON IT FOR SIX YEARS.
YOU HAVE A GENERAL IDEA ON HOW IT WORKS.
AND THESE ARE COMMENTS THAT ARE COMING TO ME FROM PEOPLE AT THE HDAC AS WELL AS TXDOT.
AND YOU CAN CHOOSE TO IGNORE THAT.
YOU CAN FEEL LIKE I'M TRYING TO WHATEVER, BUT THIS IS A REALITY.
AND YOU JUST DON'T BLINDSIDE YOUR PARTNERS.
AND FOR MANAGEMENT TO TELL TXDOT THEY'RE NOT ALLOWED TO TALK TO THEIR PARTNER AT THE TPC IS SIMPLY UNACCEPTABLE.
THE COMMUNICATION WITH TXDOT IS THAT THEY DIDN'T UNDERSTAND OUR FORM OF GOVERNMENT, THAT IT'S COUNCIL THAT SPEAKS, AND THAT THEY DON'T RECEIVE DIRECTION FROM ANYBODY OTHER THAN THROUGH THE CEO OF THE CITY, THROUGH THE MANAGER, VIA COUNCIL.
THAT'S THE ONLY COMMUNICATION WITH TXDOT.
TXDOT DOES NOT COMMUNICATE WITH US.
WE'VE SEEN THEM IN A NUMBER OF MEETINGS AND HAD CORDIAL DISCUSSIONS ON IT, AND THEY'RE PROGRESSING.
THEY KNOW THAT WE'RE GETTING THE FUNDING.
ALTHOUGH I WILL SAY ON ONE OF THOSE LAST CALLS THAT WHEN TXDOT DID TALK TO US WAS THAT VERUNA SAYS Y'ALL NEED TO BE LOOKING AND TALKING TO EVERYBODY YOU CAN TO GET MONEY AND I SAID THAT'S WHAT WE'RE GOING TO DO.
THAT'S THE SAME THING THAT TPC SAYS.
YOU NEED TO BE LOOKING AT EVERY ENTITY WHICH MEANS FEDERAL, WHICH MEANS STATE, WHICH MEANS MEANS PRIVATE PUBLIC PARTNERSHIPS AND AGAIN IT'S WORKING TOGETHER AS PARTNERS AS THERE'S NO I IN MY TEAM WHATEVER Y'ALL TELL ME TO DO WELL I JUST WANT TO REITERATE COUNCIL SPEAKS ON THIS SUBJECT I AGREE PERIOD AND IF WE WANT TO CHANGE OUR APPROACH TO THIS WE CAN'T VOTE ON THIS IT'S NOT ON THE AGENDA IF SOMEBODY FEELS THAT WE WANT TO CHANGE OUR AND MOVE IN A DIFFERENT DIRECTION AND WE CAN PUT IT ON THE ON THE AGENDA TO VOTE ON BUT AT THIS POINT WE'RE MOVING MY DIRECTION FROM COUNCIL WE'RE MOVING FORWARD WITH A TWO PRONGED APPROACH AND WE'RE MOVING FORWARD WITH GAINING FUNDING FOR THE PROJECT THAT WE'VE BEEN WORKING WITH TXDOT AND HGHGAC ON FOR QUITE A LONG TIME I AGREE WITH THAT.
[03:50:01]
MARIE SAID, IN THREE MONTHS WE'RE GOING TO KNOW A LOT MORE.BUT I THINK IT'S ALL KIND OF SWIRLING AROUND THE IDEA OF A LAND BRIDGE.
AND RATHER THAN KILL IT AND JUST GO STRAIGHT AHEAD WITH THIS OTHER ONE, WE NEED TO KNOW MORE ABOUT THAT.
SO THAT MAKES IT WORTH THE SUNK COST THAT WOULD COME INTO THE TO THE BIG BRIDGE THAT WE'RE TALKING ABOUT RIGHT NOW JUST TO FIND OUT WHAT WE KNOW ABOUT THE ANSWER ONE OF THE OTHERS IT COULD ALSO BE A LOWER BRIDGE THAT COULD ACCOMMODATE RAIL BUT NOT A LAND BRIDGE OH YES AND THEN THE DESIGN AND THE EFFORTS THAT HAVE PUT IN BY TEXT DOT COULD ACTUALLY BE USED I THINK NO MATTER WHAT HAPPENS, THIS PROJECT IS GOING TO BE SLOWED EVER SO SLIGHTLY, IF NOT GREATLY.
THAT WILL BE DETERMINED BY THE STUDY.
WE HAVE GOT TO WORK TOGETHER WITH OUR PARTNERS TO SECURE THE EXISTING BRIDGE.
THAT BRIDGE NOW HAS GOT TO LAST UNTIL SOMETHING GETS DONE.
THERE'S A WHOLE LOT OF THINGS WE CAN DO ALONG THOSE LINES TO PROLONG THE LIFE OF THAT BRIDGE.
AND IF IT'S OKAY WITH COUNCIL I WOULD LIKE TO CONTINUE TO WORK ALONG THOSE LINES WITH OUR PARTNERS TO TRY TO GET SOMETHING DONE, WHETHER IT'S MINIMIZE THE NUMBER OF LIFTS OR NOT LIFT IT AT ALL OR TO DO FURTHER PROTECTIONS ON THE BRIDGE.
THERE'S A WHOLE LOT OF THINGS THAT YOU CAN DO TO TRY TO SAVE THAT OLD BRIDGE FOR AN EXTRA DAY OR TWO.
BUT WHAT WE DON'T WANT TO HAVE HAPPEN IS HAVE IT BECOME TOTALLY UNFUNCTIONAL.
WE ALSO DON'T WANT IT TO BECOME LOAD RESTRICTED AND LOAD RESTRICTED TO THE POINT THAT WE CAN'T GET EMERGENCY EQUIPMENT ACROSS THERE.
AND WE ALSO DON'T WANT TO HAMSTRING OUR NEWEST NEIGHBOR AT GULF COPPER.
SO WE WANT TO MAKE SURE THAT WE'RE WORKING ALONG THOSE LINES.
YOU KNOW, ALONG THOSE LINES, IT MAY BE REASONABLE TO ALSO PLAN FOR WHEN THE BRIDGE GOES OUT, WHAT ARE WE GOING TO DO, LIKE SOME KIND OF CONTINGENCY PLAN TO GET PEOPLE BACK AND FORTH.
WE KIND OF HAVE THAT ALREADY FOR OUR PEOPLE, BUT WE DON'T HAVE THAT FOR 02,500 EMPLOYEES AND DAVID IS THAT A COST ON THE NAVIGATION DISTRICT IS THAT A COST ON THE CITY OF GALVESTON TAXPAYERS REMEMBER ALL THE TAXPAYERS DON'T PAY FOR THAT BRIDGE ONLY THOSE EAST OF 103RD STREET THE OTHER THING GETTING BACK TO BRIEFLY THE TWO OR THREE STUDY SO THE LETTER IS GOING UP SEEKING AUTHORITY TO DO IT I THINK IT'S IT'S THEIR FUNDING FOR THAT IS OPEN ONE OF THE MEETINGS I SUGGESTED POTENTIALLY THE CITY USED PART OF ITS FUNDING THAT'S ALLOCATED FOR THE BRIDGE TO DO THAT THAT'S UP TO COUNCIL WHETHER THAT'S A GOOD IDEA OR A BAD IDEA.
I WOULD THINK THE ONLY FUNDING WE COULD USE FOR THAT WOULD BE OUR MONEY, THAT THE CITY THROUGH THE IDC PUT IN.
BUT, AGAIN, THAT'S A COUNCIL CALL.
SO THEN THE STUDY HAS TO TAKE PLACE, RIGHT? WHOEVER FUNDS IT, THE FUNDING HAS TO BE IDENTIFIED.
AND AFTER THE STUDY'S DONE, THEN YOU FIND OUT WHETHER OR NOT IT'S FEASIBLE, AND THEN IT'S GOT TO BE FUNDED AT A FEDERAL LEVEL.
AND SO I THINK THAT WHAT THE SCENARIO BRIAN JUST POINTED OUT IS WE NEED TO WORK WITH THE NAVIGATION DISTRICT, THE COAST GUARD, WHOEVER WE NEED TO WORK WITH, AND POTENTIALLY THAT BECOME OUR FOCUS TO GET THE BRIDGE CLOSED SO IT DOESN'T OPERATE AND IT'LL EXTEND THE LIFE OF IT IF THAT IS AN ACTUAL CASE, WHICH WE'VE BEEN TOLD IT IS.
THAT THE FEWER LIFTS, THE LEAST LIKELY THERE IS TO, YOU KNOW, CREATE A CIRCUMSTANCE WHERE THE THE BRIDGE WILL NO LONGER FUNCTION BECAUSE THAT IS A WORST CASE SCENARIO.
YOU CAN'T GET PEOPLE ON AND OFF THE ISLAND.
BUT AGAIN, THAT GETS BACK TO WHOSE RESPONSIBILITY IS IT THEN? THE NAVIGATION DISTRICTS IS TO KEEP THE BRIDGE GOING, NOT THE TAXPAYERS.
WE HAVE THE DIRECTOR OF GOVERNMENT RELATIONS, SALLY BARKER.
I JUST NEEDED TO MAKE SURE YOU UNDERSTOOD FROM THE LAND BRIDGE PERSPECTIVE IN THE STUDY.
ONCE THE STUDY IS COMPLETED, IT WILL GO TO THE ASSISTANT SECRETARY FOR CIVIL WORKS WITH THE U.S.
THEY WILL HAVE UP TO 180 DAYS TO DETERMINE THAT THE FEASIBILITY STUDY IS ACCURATE AND INDEED WHAT'S BEING PROPOSED IS FEASIBLE.
ONCE THAT OCCURS, THEN THEY WILL MAKE A RECOMMENDATION TO CONGRESS FOR WHAT IS BEING RECOMMENDED TO BE AUTHORIZED IN A WATER RESOURCES DEVELOPMENT ACT.
SO ONCE YOU'RE AUTHORIZED, THAT IS WHEN YOU WOULD HAVE THE OPPORTUNITY TO PURSUE FEDERAL FUNDING.
SO IN THE MOST, IN THE FASTEST SCENARIO, IF YOU HAVE A THREE YEAR STUDY,
[03:55:01]
WHICH TYPICALLY THEY ARE, BUT IT MAY BE SHORTER, BUT THE WATER RESOURCES DEVELOPMENT ACT LEGISLATION HAS BEEN ON A TWO YEAR CYCLE.IT'S SOMEWHAT QUESTIONABLE WHETHER 26 WILL ACTUALLY HAPPEN WITH EVERYTHING GOING ON.
BUT THE FIRST ACT THAT THEY WOULD BE ABLE TO TRY AND GET AUTHORIZED IN WOULD BE 2030, WHICH MEANS YOUR FIRST OPPORTUNITY TO PURSUE FEDERAL FUNDING WOULD BE 2031. FOR A LAND BRIDGE OR FOR THE FOR THE LAND BRIDGE.
SO IF I MAY INTERJECT TO THAT, THERE ACTUALLY IS A SECONDARY WAY, WHICH IS HAVING THE PORT OF HOUSTON INVOLVED.
ON PELICAN ISLAND, JUST LIKE WITH THEIR PROJECT 11, THEY PRE FUNDED, THEY HAVE THE CAPABILITY TO PRE FUND A PROJECT.
SO THAT COULD BE AN OPTION THAT COULD HAPPEN WHERE THEN, WHEN THE FUNDS ARE AVAILABLE, THE FEDERAL GOVERNMENT WOULD REFUND THAT.
SO THAT COULD BE A POSSIBILITY AS WELL.
WHAT WOULD HAPPEN IF WE GET TO THAT POINT AND THE FEASIBILITY ANALYSIS RECOMMENDS IT, AND THEN WE'VE GOT ALL THIS MONEY FOR THIS OTHER BRIDGE SITTING HERE.
COULD THEY? YEAH, COULD THEY? BECAUSE ANYTHING IS FEASIBLE.
COULD THEY DO ANYTHING? COULD THEY REPURPOSE THAT MONEY? TO HELP FUND A LAND BRIDGE IT WOULD BE AT THE AT THE APPROVAL OF THE PARTICIPANTS WELL THE PARTICIPANTS NOW THE TEXT DOT MONEY WOULD ALL GO AWAY BECAUSE THAT'S IN THE BRIDGE FUNDS AND DESPITE HOW MANY TIMES WE CALL IT A LAND BRIDGE IT'S NOT A BRIDGE ANYMORE SO THEY HAVE MADE IT TEXT OUT HAS MADE IT VERY CLEAR IN THE RECENT MEETINGS THAT WE'VE HAD THAT IF IT IF IT BECOMES AN EARTHEN TYPE ROAD THAT THEY ARE OUT IN TERMS OF THEIR BRIDGE FUNDS.
50 MILLION OF THE FUNDING WOULD DISAPPEAR.
BUT TO YOUR QUESTION, BOB, COULD THAT MONEY, THE MONEY THAT HAS BEEN COLLECTED IN THE INITIAL AFA, BE TRANSFERRED TO ANOTHER? IT COULD.
IT WOULD TAKE THE RENEGOTIATION OF THOSE MOUS.
YOU KNOW, THAT BRINGS ME AROUND TO MY OTHER POINT OF WHAT WE'RE DOING, WHAT WE'RE CONTEMPLATING RIGHT NOW IS GOING DOWN THESE TWO PATHS.
SO IT REALLY SEEMS TO ME LIKE WE OUGHT TO BE VERY TRANSPARENT AND CLEAR TO ALL OF OUR PARTNERS THAT ARE WITH US SO FAR WHAT WE'RE DOING.
THEY'VE BEEN IN ALL THE MEETINGS.
THEY'RE ALL IN MEETINGS, BUT WHATEVER COUNCIL DIRECTION IS, THEN WE HAVE TO COMMUNICATE THAT WITH THEM.
WE PROBABLY NEED TO RENEGOTIATE ALL THE INTERLOCALS WE HAVE.
THE OTHER ITEM THAT I HEARD IT BRIEFLY IN DISCUSSION IN ANOTHER SEGMENT OF THE MEETING WAS TO REPURPOSE THE CURRENT PELICAN ISLAND BRIDGE.
UNDER THE CURRENT THING, YOU CAN'T DO THAT.
AS PART OF THE PROJECT, WHEN YOU USE THE FEDERAL MONEY, YOU HAVE TO REMOVE THE OLD BRIDGE.
THEY CAN CERTAINLY SELL THEIR RIGHT OF WAY, I WOULD ASSUME.
AGAIN, THAT'S A LEGAL QUESTION.
BUT THE BRIDGE HAS TO COME DOWN.
AND THE NAVIGATION DISTRICT IS CONTRIBUTING $10 MILLION TOWARD THAT.
WHETHER IT COSTS $10 MILLION OR $30 MILLION, IT IS PART OF THE PROJECT.
NAVIGATION'S DISTRICT CONTRIBUTION IS $10 MILLION.
SO AT THIS POINT, THE PATH WE'RE ON.
WHAT I MEAN BY THAT IS ALL OF OUR PARTNERS SO FAR THAT ARE WITH US, EVEN TXDOT, BE CLEAR TO THEM WHAT WE'RE DOING.
EVERYONE'S NOT IN THE MEETING.
YOU KNOW WHAT I'D LIKE TO SEE, ACTUALLY, IS A LITTLE MORE IN DEPTH ANALYSIS OF SOME OF THESE THINGS WE'RE TALKING ABOUT.
TIMELINES AND GOING DOWN BOTH PATHS.
TIMELINES, MILESTONES, AND WHAT HAPPENS AT EACH CRITICAL PHASE ON THESE TWO PATHS.
WE HAVE THAT FOR THE BRIDGE, RIGHT? WE PRESENTED TO COUNCIL, AND YOU'VE SEEN THAT THAT IS UNCHANGED, AS FAR AS I KNOW.
UNLESS THEY'VE SLOWED DOWN, I DON'T THINK THEY HAVE.
THE LAND BRIDGE, THAT'S OUTSIDE OF OUR CONTROL.
WE HAVE NOTHING TO DO WITH IT.
RIGHT NOW, THE TIMELINES FOR THE REPLACEMENT OF THIS BRIDGE ARE TOO LONG AND EVEN LONGER.
THAT'S YOUR TWO TIMES? YOU KNOW WHAT I'M SAYING, JUST TO HAVE BOTH OF THESE OPTIONS SO THAT THEY'RE CLEAR RIGHT NOW THAT WHAT PATH WE'RE HEADING DOWN.
IT DOESN'T HAVE TO BE ANYTHING FANCY.
SALLY COULD PUT THAT TOGETHER FOR US, I THINK.
WELL, WHAT I CAN DO FOR YOU, I CAN, BECAUSE WHAT YOU'RE LOOKING AT ON THE LAND BRIDGE SIDE IS COMPLETION OF THE STUDY, AUTHORIZATION OF A PROJECT, AND THEN WHEN YOU CAN PURSUE FEDERAL FUNDING.
SO I COULD PUT, I MEAN, THAT WOULD BE VERY SIMPLE IN TERMS OF, YOU KNOW, WHAT YEAR THAT WILL.
AND WE HAVE A TIMELINE FROM TXDOT, ASSUMING ALL FUNDING IS IN PLACE.
[04:00:01]
WE ALREADY HAVE A GANTT CHURCH ON THEIR TIMELINE.THEY WANT TO LET THIS PROJECT INTO 29, I THINK IT IS.
BOB, I WOULD SAY THAT WE'LL KNOW MORE ON THE OTHER APPROACH, THE LAND BRIDGE QUOTE APPROACH, IN THREE MONTHS.
LET'S SEE HOW THIS UNFOLDS WITH THE CORPS.
YOU'RE GOING TO HAVE A PIECE OF KNOWLEDGE AS TO WHERE IT GOES NEXT.
YOU'RE NOT GOING TO HAVE ANY IDEA.
YEAH, I THINK A TIMELINE WOULD BE FRUITLESS AT THIS POINT.
I MEAN, Y'ALL WERE AT THE COLLEGE OF THE MAINLAND.
AND IF I'M NOT MISTAKEN, THE STATEMENT FROM TXDOT WAS, IF Y'ALL ARE MOVING TO A LANDING BRIDGE AFTER JOHN HILL FROM GULF COPPER AND THE SULLIVAN SPOKE, IF THAT'S THE INTENT, TXDOT, IF I'M NOT MISTAKEN, SAID WE'RE OUT.
HE HAS MADE THAT COMMENT A COUPLE TIMES, ALTHOUGH THE LAST MEETING WE HAD AT THE PUMP STATION, I THINK THE DIRECTION WAS IN FRONT OF SOME OF HIS STATE OFFICIALS WAS THAT THEY WOULD CONTINUE ON THE PATH.
NOW, I HAVE NO IDEA IF THIS SPEEDS HIM UP, SLOWS HIM DOWN.
DOES IT GO TO A SOMEWHAT SIDE BURNER, BACK BURNER? I DON'T KNOW.
THEY'RE USING TXDOT MONEY RIGHT NOW TO DO EVERYTHING.
AND THEY'VE EXPENDED CLOSE TO SEVEN.
AND IT'S TOTALLY UP TO THE DISTRICT ENGINEERS HOW MUCH RESOURCE HE WANTS TO COMMIT TO THAT.
WHAT WAS THE ACRONYM THAT WAS ATTACHED TO YEARLY PROJECTS, UP AND COMING YEARLY PROJECTS? SOMETHING ABOUT A DEADLINE THAT, YOU KNOW, THERE'S NO WAY THAT A LAND BRIDGE RESEARCH COULD FIT INTO THIS YEAR BECAUSE A CERTAIN DEADLINE HAD PASSED AS FAR AS FEDERAL PROJECTS.
NO, THAT'S WHAT YOU WERE TALKING ABOUT, IS THAT WHETHER THERE WAS.
AN APPLICATION PROCESS FOR WERDA AND THINGS LIKE THAT.
YEAH, I MEAN, EVERYTHING TIES TO AUTHORIZATION, OKAY? IF THE STUDY PRODUCES A RECOMMENDATION THAT IS DETERMINED BY THE ASA TO BE FEASIBLE, AND THE ASA PUTS THAT FORWARD, SUBMITS THAT TO CONGRESS, AND HE HAS UP TO 180 DAYS TO DO THAT, OKAY, THEN CONGRESS, ASSUMING THEY TAKE UP A WERDA BILL THAT YEAR OR SOON WOULD HAVE THE ABILITY TO AUTHORIZE THE PROJECT IN THAT BILL.
BUT LIKE I SAID, AUTHORIZATION IS NOT APPROPRIATION.
YOU HAVE OVER $100 BILLION OF AUTHORIZED ARMY CORPS OF ENGINEERS PROJECTS THAT REMAIN UNFUNDED.
SO THIS IS NO EASY TASK CHASING FEDERAL DOLLARS FOR CORPS PROJECTS, WHICH IS WHY COUNCILMEMBER ROBB, MADE THE OBSERVATION THAT YES, THE NON FEDERAL SPONSOR COULD ADVANCE FUND, IF YOU WOULD, THE PROJECT.
IN FACT, THE CURRENT ASA HAS THIS INITIATIVE THAT HE'S WORKING ON, BUILD INFRASTRUCTURE, NOT PAPERWORK OR SOMETHING LIKE THAT, WHERE HE'S TRYING TO INCENTIVIZE NON FEDERAL SPONSORS TO TAKE ON STUDIES.
THE TWO MORE 203S, IF YOU WANT A STUDY DONE, ADVANCE FUND IT.
THEY'RE ALSO LOOKING AT SHEDDING PROJECTS BECAUSE THERE'S TOO MANY IN THE PIPELINE.
THERE'S TOO MANY IN THE PIPELINE.
LIKE, WERDA IS NOT EVEN A GUARANTEE.
WERDA IS A POSSIBILITY, BUT THERE ARE SO MANY IT'S ONE PATH.
THERE ARE SO MANY STRINGS ATTACHED TO WHETHER OR NOT IT PROGRESSES THAT IT WELL, THE CHALLENGE IS WITH THE COASTAL TEXAS PROJECT.
IN THE FY2026 APPROPRIATION BILLS, THANKS TO CONGRESSMAN WEBER, WE HAVE $5 MILLION ALLOCATED TO THAT PROJECT.
AND GOING BACK TO BOB, THAT'S WHY I GUESS I'D SAY THAT ANALYSIS AND RESEARCH AND TIMELINES.
WITH THE MOVING PARTS THAT ARE GOING BETWEEN WHAT'S THERE WITH THE CURRENT BRIDGE DESIGN AND WHAT IS BEING PUSHED AND SUPPORTED WITH THE LAND BRIDGE DESIGN, THERE'S ABSOLUTELY NO TELLING.
IF COUNCIL DOESN'T WANT THAT, I'LL JUST GET WITH SALLY AND GET THAT.
WELL, YOU KNOW, THE OTHER THING, TOO, IS THAT BOTH IT'S A GOOD POINT.
COUNCIL WOULD LOVE THE ANSWERS, BUT WHAT I'M SAYING IS AFTER GOING TO THAT MEETING, IT WAS LIKE THERE'S ALWAYS AN ACT OF CONGRESS AND I MEAN THERE'S MULTIPLE WAYS THAT THINGS CAN BE SPEEDED UP, SPED UP OR HOWEVER.
I THINK THE BOTTOM LINE, THE MOST CRITICAL DATES TO KEEP IN MIND ARE TXDOT WANTS TO, TXDOT BASED UPON THEIR CURRENT TIMELINE, AS WAS MENTIONED, WANTS TO LET A CONSTRUCTION CONTRACT IN SEPTEMBER 2029.
BASED UPON THE TIMELINE I GAVE YOU LEGISLATIVELY, THE EARLIEST
[04:05:01]
YOU COULD PURSUE A FEDERAL DOLLAR IS GOING TO BE 2031.UNLESS THERE WAS A NON FEDERAL SPONSOR, WHICH HAPPENS ALL THE TIME.
AND IT'S ESPECIALLY HAPPENING NOW IN INFRASTRUCTURE PROJECTS.
IT'S HAPPENED IN THE COASTAL WORLD FOR YEARS UPON YEARS.
WHICH IS WHY SO MANY OTHER STATES ARE AHEAD OF US.
ONE OF THE THINGS THAT CAN I YOU GO, YOU GO.
JUST TO GIVE YOU FULL CLARITY IS WE'RE AT A POINT WHERE WE'VE BEEN ASKED TO GO OUT, SPEND MONEY, GET APPRAISALS AND ACQUIRE RIGHT OF WAY.
THAT'S MONEY WE'RE GONNA HAVE TO SPEND.
THE RIGHT OF WAY COULD BE INEXPENSIVE, IT COULD BE VERY EXPENSIVE, WE DON'T KNOW.
AND IT MAY LIKELY INVOLVE LITIGATION.
THAT'S BEEN THE INDICATION AT THIS POINT.
SO, YOU KNOW, IF YOU DON'T DO THAT AND WE STOP, THEN YOU'RE FURTHER DELAYING.
DAN, IS THAT FUNDED BY THE MONEY THAT'S BEEN EARMARKED AND IN PLACE? YES.
AND JUST MAYBE IT'S A STUPID QUESTION, SO LET'S SAY THAT WE GO THROUGH EMINENT DOMAIN.
WE GO THROUGH ACQUIRING THAT RIGHT OF WAY, AND THEN ALL OF A SUDDEN, THE BRIDGE CHANGES COURSE.
IS THAT SOMETHING THAT WE OWE MONEY BACK? HOW DOES THAT WORK? THAT'S WHY I THINK WE WOULD HAVE TO RENEGOTIATE WITH OUR PARTNERS AND SAY IT'S FOR WHATEVER.
THEY'D HAVE TO GIVE US AUTHORITY TO USE IT FOR WHATEVER.
TOWARDS ADVANCING SOME CONNECTIVITY TO PELICAN ISLAND.
AND AGAIN, WE'D HAVE TO RENEGOTIATE ALL THOSE AGREEMENTS.
FLORIDA HOUSTON HAS A TIMELINE WHERE THEY CAN CLAW THE MONEY BACK IF WE DON'T SIGN THE AFA BY THE END OF THE YEAR.
SO THOSE ARE THINGS THAT ARE IN AGREEMENTS NOW THAT WE'VE GOT TO RENEGOTIATE.
I MEAN, PART OF THE WILL, THOSE ARE IMPORTANT PARTS.
YEAH, IT'S THE FIRST TIME I'VE HEARD, AND I'M GLAD TO HEAR IT, THAT THERE MAY BE AN ALTERNATIVE FUNDING THAT THE PORT OF HOUSTON'S WILLING TO PUT UP THE MONEY FOR THIS PROJECT.
AND IT CAN BE ANOTHER TOOL THAT WE HAVE IN OUR TOOLBOX.
MAYBE THEY DON'T PUT UP ALL OF IT, BUT THEY PUT UP SOME OF IT.
MAYBE HGAC, THROUGH THEIR FUNDING, CAN GET US SOME ADDITIONAL FUNDING, AND WE KEEP WHITTLING AWAY AT THE $205 MILLION.
BUT MY BET IS THE $205 MILLION IS GOING TO CONTINUE TO GROW.
IT'S NEVER GOING TO GET SMALLER.
AND THE FURTHER WE DELAY, THE HIGHER THAT NUMBER IS GOING TO BE.
ALEX, LET'S KIND OF WRAP THIS UP.
SO MY UNDERSTANDING IS THAT IF WE DID PURSUE FUNDING FOR THE BRIDGE THAT IS ALMOST 100% COMPLETE DESIGN, AND FEASIBILITY STUDIES TURN OUT TO BE FEASIBLE MAJORITY OF TIMES.
PIVOTING FROM THE USE OF THOSE FUNDS, REGARDLESS OF THE COMMENTS FROM TXDOT THEY'LL PULL OUT, THERE IS A WAY TO REAPPLY SOME OF THOSE FUNDS FROM THE ORIGINAL BRIDGE TO A LAND BRIDGE IF IT'S DETERMINED FEASIBLE, AND WE GO DOWN THAT BRIDGE.
IT STILL HAS TO BE AUTHORIZED FIRST.
IT'S, WELL, I MEAN, AGAIN, YEAH.
A FEASIBILITY STUDY DETERMINING FEASIBILITY IS NOT AN AUTHORIZATION.
I GET IT, BUT IF WE'RE MOVING, WE CAN STILL MOVE IN THE DIRECTION, AND IF ALL HELL BREAKS LOOSE AND EVERYONE SAYS, YOU KNOW, WE'RE GOING TO VOTE YOU OUT IF YOU DON'T WANT TO SUPPORT A LAND BRIDGE, AND THEN EVERYTHING TURNS OUT TO BE APPROVED AT THE LAND BRIDGE LEVEL, IF WE'RE STILL PURSUING FUNDING, WE STILL HAVE THE AFA, EVERYTHING, WE COULD PIVOT AND PERHAPS MOVE THE FUNDING.
TO A LAND BRIDGE WITH, I MEAN, IT'S HOOPS TO JUMP THROUGH, BUT NOT IMPOSSIBLE.
I THINK EVERYTHING WE'RE TALKING ABOUT, EVERY TIMELINE THAT WE'VE LAID OUT HERE ARE OPTIMAL.
I'M TOLD BY TXDOT THEY BELIEVE ENVIRONMENTAL ON WHAT'S BEING PROPOSED IS 10 YEARS.
NOW, THE PEOPLE THAT ARE IN FAVOR OF THE LAND BRIDGE HAVE SAID THEY CAN GET IT ALL DONE IN TWO YEARS.
TXDOT, WHO HAS SOME EXPERIENCE IN DOING THIS, YOU'RE TALKING ABOUT A HUGE IMPACT ON THE GALVESTON BAY.
AND THEY THINK THE ENVIRONMENTAL WILL BE 10 YEARS.
THEY THINK THAT EVERYBODY, EVERY ENVIRONMENTALIST THAT'S GOT AN INTEREST IN THE BAY WILL COME OUT.
I CAN SEE HOW DAVEY COULD GET NATIONAL SECURITY.
MOVING IT UP FOR, I MEAN, TO RUIN THE SALINITY OF THE BAY OR TO RE SILK THE HOUSTON SHIP CHANNEL, I DON'T KNOW THAT DAVIES HAS THAT KIND OF SWAY.
YOU COULD DO A LAND BRIDGE WITH WATER FLOW AND YOU COULD HAVE CULVERT.
THAT DOESN'T CORRECT THE SILTING PROBLEM, COUNCILMEMBER.
THAT'S THE IDEA BEHIND THE 203 PROJECT IS AND IT MAKES SENSE.
I MEAN, WHEN IT WAS LAID OUT, IT PAYS FOR ITSELF.
WELL, THERE'S TWO REASONS FOR THE LAND BRIDGE.
[04:10:01]
TO GET RAIL ACROSS OVER THERE, AND THAT'S OUR DEAL.SOME OF THE OTHER FOLKS THAT ARE PROPONENTS OF THE LAND BRIDGE WANT TO DO IT TO STOP SILTATION AND TO CHANGE THE CURRENTS OVER THERE SO THEY CAN OPERATE MORE HOURS.
WELL, AND THAT'S WHERE FEASIBILITY WILL GIVE US MORE DATA ON THAT, IF THAT ACTUALLY WORKS.
SO TO GO BACK TO THE DIRECTION PART OF THAT.
I THINK IT WOULD STILL BE PRUDENT FOR US TO PURSUE THE FUNDING FOR THE PELICAN ISLAND BRIDGE, THE CURRENT ONE THAT WE HAVE.
IF THINGS CHANGE, WE LOSE MONEY ALONG THE WAY, WELL, WE'RE STILL WORKING TOWARDS A GOAL OF A BRIDGE, WHATEVER ANY FEASIBILITY SAYS, WHATEVER.
I DO FEEL COMFORTABLE WITH MARIE BEING APPRISED OF SOME OF THIS.
SHE HAS REALLY GOOD RELATIONSHIPS WITH RANDY, DENNIS PAUL, PRESUMABLY THE NEXT STATE SENATOR, TERRY.
I THINK IT'S A BENEFIT TO HAVE HER ON BOARD OR AT LEAST A COUNCIL REPRESENTATIVE.
I WOULD AGREE WITH YOU, BUT I WANT TO BE CLEAR THAT IT'S ALWAYS GOOD TO GET EVERYBODY THAT'S INVOLVED, KEEP THEM IN THE LOOP ON THIS.
BUT ONLY COUNCIL GIVES DIRECTION ON THIS.
HOWEVER THAT COMMUNICATION WORKS BETWEEN MANAGEMENT AND MARIE, I'M SURE THEY CAN WELL, I'M HAPPY TO COPY MARIE ON ANY CORRESPONDENCE I HAVE AND NOTIFY YOU GUYS WELL, BUT THERE'S NO REASON TO I HAVE TO TELL THEM TO COPY MARIE.
JUST COUNCIL, YOU COPY EVERYBODY IN THAT PICTURE.
THERE'S NO REASON TO NOT CONTINUE TO GO AFTER THE FUNDING FOR THE I DON'T KNOW HOW MANY MORE OPPORTUNITIES FOR THAT WE'RE GOING TO HAVE, BUT I LOOK TO MY SOCIAL CALENDAR OVER HERE TO THE RIGHT TO TELL ME WHERE THAT'S GOING.
AND THEN AN IDEA, AND I DON'T KNOW IF THIS IS SOMETHING THAT LEGAL COULD ANSWER, HAVING THE EASEMENTS THAT WE HAVE TO ACQUIRE, IF WE CAN ONLY MAKE THEM EXECUTABLE IF CERTAIN PARAMETERS ARE MET.
I DON'T KNOW HOW I'M NOT A I DON'T GO INTO EMINENT DOMAIN LAW AND ALL THOSE OTHER THINGS WITH EASEMENTS.
IDEALLY, YOU DON'T WANT TO GO TO EMINENT DOMAIN.
YOU'D LIKE TO NEGOTIATE A PRICE TO ACQUIRE THE PROPERTY BECAUSE IT'S REAL PROPERTY.
BUT WHAT I DON'T WANT TO HAVE IS A ROAD THAT'S TO NOWHERE FOR CONNECTIVITY TO PELICAN ISLAND THAT WAS FOR A BRIDGE THAT EXISTED AT ONE POINT IN TIME BY DESIGN.
ANYTIME YOU INTRODUCE OPTIONALITY, IT INCREASES THE COST.
EITHER A LOWER BRIDGE OR THE CURRENT BRIDGE DESIGN WILL REQUIRE THE RIGHT OF WAYS.
IF THAT ANSWERS YOUR QUESTION.
DAN, I WOULD RECOMMEND, TOO, IF COUNCIL FELT COMFORTABLE, I'D CONTACT TXDOT, AND I WOULD FIND OUT, GET AN UPDATE, A STATUS UPDATE FROM TXDOT, AND REPORT BACK TO COUNCIL, WOULD YOU PLEASE? HE'S GLAD TO DO IT, MAYOR.
IS THAT OKAY? ANY OTHER THOUGHTS ON THIS, COUNCIL? COUNCIL, WE HAVE FOUR MORE ITEMS BEFORE WE TECHNICALLY GO
[5. EXECUTIVE SESSION]
TO EXECUTIVE SESSION.DO YOU WANT TO BREAK FOR EXECUTIVE SESSION? YES.
ALRIGHT, LET'S BREAK FOR THAT AND THEN WE'LL COME BACK AND DO THE FOUR.
551 WE ARE NOW 551 EXECUTIVE SESSION ITEM CONSULTATION WITH ATTORNEY PURSUANT TO TEXAS GOV.
CODE 551.071. CONSULTATION WITH ATTORNEY AND EXECUTIVE SESSION WILL BE CONDUCTED TO DISCUSS AND RECEIVE LEGAL ADVICE CONCERNING PENDING LITIGATION AND OR SETTLEMENT ON A MATTER WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENT BODY UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT.
THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THIS CHAPTER.
RELATED TO THE FOLLOWING, 121 CV 00359, SONIA PERETA V.
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS.
[4.J Discussion regarding Swagit’s services for broadcasting City Council, Planning Commission, and other key municipal meetings (Robb/C. Brown - 10 min)]
YEAR.WE ARE NOW OUT OF EXECUTIVE SESSION OF OUR WORKSHOP FOR MARCH 26, 2026 HERE IN GALVESTON.
WE ARE NOW MOVING BACK TO OUR REGULAR AGENDA WITH THE ITEM 4J, PLEASE.
[04:15:02]
ITEM 4J, DISCUSSION REGARDING SWAGIT'S SERVICES FOR BROADCASTING CITY COUNCIL PLANNING COMMISSION AND OTHER KEY MUNICIPAL MEETINGS.WELL, BEING THAT I SIT ON A LOT OF MEETINGS VIRTUALLY, AS WELL AS ZOOM, AND FROM COMMENTS THAT I'M RECEIVING FROM THE PUBLIC, I'M JUST CURIOUS WHEN WAS THE LAST TIME WE BID OUT OUR TV SERVICES.
DOESN'T SEEM TO BE THE MOST SOPHISTICATED PRODUCT THAT THERE IS.
JANELLE, WHERE DID WE SAY IT? SWAGIT IS WHO'S DOING ALL THIS, IS THAT RIGHT? YES, THAT'S CORRECT.
OUR CONTRACT, WE STARTED GRANICUS WAS BOUGHT OUT BY SWAGGOT, BUT WE JUST ENTERED INTO A NEW CONTRACT IN 2025, I BELIEVE.
HERE, I'M GOING TO LET MARISSA ELABORATE.
YES, WE JUST ENTERED A NEW CONTRACT.
WE EXTENDED OUR GRANICUS CONTRACT FOR ANOTHER THREE YEARS, AND THAT WAS IN AUGUST 2025.
AND SO WITH THAT, WE HAVE 100 MEETINGS THAT WE STREAM.
THAT WE'RE ABLE TO STREAM EACH YEAR AND WE HAVE DIFFERENT MEETINGS THAT WE WOULD LIKE FOR INSTANCE WE DO CITY COUNCIL PLANNING IDC LANDMARK THEY'RE THE SHORT TERM RENTAL ONE HAD AUDIO ONLY THERE ARE A COUPLE OF THERE'S ONE OTHER OH BUILDING YES SO IN MOST UM VIDEO WATCHING THEM OTHER CITY COUNCIL MEETINGS OR EVEN OTHER DEPARTMENTS OR EVEN THE PARK.
THERE TENDS TO BE LIKE WHEN WE'RE PUBLIC COMMENT YOU WOULD THINK THE CAMERA WOULD GO TO THE PERSON IN THE PUBLIC WHERE OUR CAMERA NEVER CHANGES FROM THE CITY COUNCIL.
THERE WERE TWO MEETINGS THAT WERE SUPPOSED TO HAVE A DIRECTOR AND DIDN'T, AND WE'VE ADDRESSED THAT WITH GRANICUS, WITH THEIR SUPPORT TEAM.
WE TOLD THEM THAT WE'VE HAD ISSUES WITH THEIR NOT BEING A DIRECTOR DURING THOSE TWO TIMES.
BUT OTHERWISE, THEY DO TYPICALLY HAVE A DIRECTOR THAT'S MOVING THE CAMERA THROUGH EACH MEETING DURING THE CITY COUNCIL MEETINGS.
I KNOW, BUT I JUST HAVEN'T SEEN THAT IN MONTHS.
AND OUR SYSTEM SEEMS SO INFERIOR VERSUS OTHER CITIES OR OTHER WELL, FIRST OF ALL, IT'S VERY DIFFICULT TO GET SOMEONE TO BID ON A CITY OUR SIZE.
THERE'S ONLY BEEN USUALLY TWO CHOICES, AND ONE CAN'T EVEN FULFILL WHAT WE NEED.
YOU KNOW, THEY JUST WHEN WE WENT WITH SWAGET, MOST OF THE OTHER CITIES WERE WITH SWAGET.
LOWER ON THE TOTEM POLE IS WHAT YOU'RE SAYING? NO, I'M JUST SAYING THERE'S NOT I PREFER END OF THE HIGHWAY.
NO, BUT I'VE WATCHED OTHER CITIES AND PARTICIPATED IN OTHER MEETINGS THAT ARE USING SWAGET, AND IT APPEARS MUCH MORE SOPHISTICATED THAN OUR CITY.
SO I'M TRYING TO FIGURE OUT WHY.
I WILL TELL YOU THAT WE'RE MARCHING THROUGH THE THIRD FLOOR RENOVATIONS NOW.
PART OF THE PLAN IS THAT ULTIMATELY, AND WHETHER THIS GETS ACCOMPLISHED IN MY LIFETIME OR NOT, IS THAT WE'D LIKE TO REALLY ULTIMATELY PUT COUNCIL ON THE FIRST FLOOR AND BUILD OUT A COMPLETE, AND FOLLOW MY WORDS ON THIS, WE WANT TO CREATE A COMPLETE COUNCIL STUDIO ON THE FIRST FLOOR BECAUSE THERE'S FUNDING AVAILABLE FOR THAT.
WHICH WOULD GREATLY UPGRADE EVERYTHING.
WE CAN DO SOME INTERIM UPTICKS AND BALANCES, AND I THINK THEY'RE WORKING ON THAT WITH THEM.
BUT THE ULTIMATE GOAL IS TO CREATE A REALLY FIRST CLASS BROADCAST CENTER FOR COUNCIL ON THE FIRST FLOOR.
THE MAGIC OF THE FIRST FLOOR IS WE CAN OPERATE INDEPENDENT OF THIS ELEVATOR BECAUSE THAT'S ALWAYS A CONCERN WE HAVE.
IF THIS ELEVATOR, WE ONLY HAVE ONE, AND IF IT BREAKS, WE CAN'T HAVE PUBLIC ACCESS.
SO THAT'S WHY ULTIMATELY WE WANT TO MOVE THE COUNCIL CHAMBERS AND WORKSHOP ROOM DOWN TO THE FIRST FLOOR.
AND WHEN WE DO THAT, WHEN WE DO OUR CONFERENCE ROOMS, WE'RE ALSO GOING TO EQUIP ALL OF THEM SO WE CAN HAVE MEETINGS IN ALL THE CONFERENCE ROOMS AND EVERYTHING ELSE.
WE'RE ALSO KIND OF LIMITED IN THE BACK OF THIS ROOM.
[04:20:01]
YEAH, THIS IS NOT GOOD.THEY DO, RIGHT? NO, BUT I MEAN THE EQUIPMENT.
IS VERY LIMITED BECAUSE OF THE SPACE WE HAVE.
I MEAN, WE PROBABLY HAVE THE EQUIPMENT WE CAN HAVE FOR THAT SPACE.
YEAH, I DON'T KNOW IF Y'ALL ARE WE PAY A SIMILAR PRICE TO OTHER CITIES IF WE ARE USING WE'RE PAYING BY THAT.
YES, THE CONTRACT ACTUALLY WENT THROUGH TIPS.
SO IT IS THE AGREED UPON RATE FOR THE NUMBER OF MEETINGS THAT WE HAVE.
I WILL SAY SWAGET HAS TYPICALLY BEEN CONSIDERED THE GOLD STANDARD AMONG CITIES.
HOWEVER, IN THEIR PURCHASE, WHEN THEY WERE PURCHASED BY GRANICUS, WE HAVE NOTICED SOME CHALLENGES DURING THAT SWITCH, AND THEREFORE WE'VE BEEN ADDRESSING THAT WITH OUR SUPPORT SYSTEM, BUT THERE HAVE DEFINITELY BEEN CHALLENGES IN THE LAST COUPLE OF MONTHS.
BUT WE'RE AWARE OF THOSE, AND WE'VE BEEN WORKING WITH OUR REPRESENTATIVE.
WE UPGRADED OUR CAMERAS, WHAT, A YEAR AGO, TWO YEARS AGO? NO, THE CAMERAS, IT'S BEEN A LITTLE LONGER THAN THAT.
HOPE KNOWS THE EXACT, HERE SHE IS.
WORKING WITH THEM AS WELL ON THIS.
EVER HAD TO CARRY A MIC BEFORE? I TALK TOO LOUD.
NO, IT ACTUALLY SOUNDS LIKE A REVERB, SO JUST TALK.
WHEN THEY REACTED, THE AGREEMENT WAS.
SO I GOT EQUIPMENT IN THAT ROOM AND IN HERE WAS NOT UPGRADED.
SO WE HAVE A MEETING WITH THEM ON MONDAY TO TALK ABOUT POTENTIALLY SOME ENHANCEMENTS AND TO DOMINO OFF OF WHAT BRIAN WAS SAYING.
WE DON'T WANT TO DO TOO MUCH BECAUSE THERE IS THE INTENT TO MOVE ALL OF THIS SOMEWHERE ELSE.
SO I HEAR WHAT YOU'RE SAYING, AND WE'RE CORRECT.
THERE HAVE BEEN SOME PERFORMANCE CONCERNS WITH SWAGGART SINCE GRANICUS BOUGHT THEM.
AND SO COLLECTIVELY, THE TEAMS HAVE BEEN WORKING WITH THEM TO TRY AND GET THOSE RESOLVED FROM THE DIRECTOR STATUS AND EVERYTHING.
I HEARD YOU SAY THOUGH WAS THAT YOU WOULD LIKE A CAMERA THAT MAYBE POINTS MORE IN ON THE SPEAKER? YEAH, LIKE BECAUSE OF IT WHEN PEOPLE ARE DOING PUBLIC COMMENT.
WE'VE HAD SOME TROUBLE WITH THE SWITCHING.
OKAY, SO WE ARE GOING TO BE WORKING WITH SWAGET NEXT WEEK TO TALK ABOUT SOME OF THE EQUIPMENT THAT RUNS THE WHOLE THING.
IT NEEDS TO BE LIKE THEIR RESPONSIBILITY IN OUR CONTRACT TO UPGRADE THAT AS SYSTEMS CHANGE.
SO IN 2020, WHEN WE DID THIS CONTRACT, WE ALSO DID IT WITH THE EQUIPMENT AS WELL.
IN AUGUST OF 25, WHEN THEY REDID IT, IT WAS JUST FOR THE STREAMING SERVICES.
WE'RE STILL DEALING WITH 2020 EQUIPMENT.
I DON'T KNOW, BUT THE ISSUES THAT YOU'VE CITED ARE MORE SPECIFICALLY RELATED TO THE LACK OF A DIRECTOR THAT MARISSA WAS TALKING ABOUT.
WHAT DO YOU MEAN A LACK OF A DIRECTOR? SOMEBODY WATCHING IT AND CONTROLLING THE CAMERAS.
I MEAN BECAUSE THEY'RE SUPPOSED TO BE A DIRECTOR AND WE'RE NOT HAVING THAT AND THEN WE SHOULD GET CREDIT TOWARDS THE EQUIPMENT UPGRADE.
MARISSA IS WORKING WITH THEM ON THE DIRECTOR.
THAT'S NOT REALLY AN AREA WHERE IT.
WE'RE MORE CONCERNED ABOUT WHAT LINES IT RIGHT.
BUT I THINK THE OTHER AREA WHERE I FEEL LIKE I'VE NOTED SOMETHING A LITTLE BIT DIFFERENT IS THE BANNERS.
SO I FEEL LIKE THAT'S PROBABLY SOMETHING THAT ALSO NEEDS TO BE ADDRESSED WITH THAT.
TO BRIAN'S POINT, SWAGGART HAS THE MARKET ON THESE, ON THE STREAMING SERVICES FOR MANY, MANY, MANY MUNICIPALITIES.
[04:25:01]
I KNOW, BUT I WATCH MANY[4.K Discussion regarding immediate actions the City can take to address unpermitted or unscheduled events, including Senior Skip Day (Robb/C. Brown - 10 min)]
MUNICIPALITIES AND THAT'S BETTER.SO WE NEED TO FIND OUT WHAT THEY'RE NOT DOING.
I WILL TELL YOU THAT THEY HAVE BEEN WORKING ON IT.
ITEM 4K, DISCUSSION REGARDING IMMEDIATE ACTIONS THE CITY CAN TAKE TO ADDRESS UNPERMITTED OR UNSCHEDULED EVENTS, INCLUDING SENIOR SKIP DAY.
WELL, HOW ARE YOU, SIR? HELLO, HELLO.
HELLO, HOW ARE YOU? I'M A MENTAL ASSISTANT POLICE CHIEF.
SO MY WHOLE CONCERN ON THIS, AND I'VE BEEN DOING A LOT OF RESEARCH AS TO WHAT OTHER CITIES ARE DOING, BECAUSE WE'RE NOT THE ONLY COASTAL CITY THAT CAN SIT WITH SENIOR DAY.
SO I WOULD LIKE TO SEND NOT SO MUCH A COMMENT TO THE POLICE AS IT IS TO I'M TRYING TO MAKE YOUR JOB EASIER.
I WOULD LIKE TO SEE US, AND BRIAN, WE TALKED ABOUT THE ONE THING, WHICH IS PUTTING NO PARKING SIGNS ON 3005.
THE FACT THAT THIS YEAR WHEN THEY WERE STOPPED, THEY COULDN'T GET TO THE BEACH, THEY JUST PARKED THEIR CARS ON 3005 AND WALKED THROUGH PEOPLE'S PROPERTY, WHETHER THEY WERE THERE OR NOT.
THEY WENT UP ON PEOPLE'S PORCHES.
THAT WE'RE HOME AND IT REALLY IS CREATING AN ISSUE FOR OUR CITIZENS AND CERTAINLY A FEAR FACTOR.
AND THE MORE THAT WE CAN PUT IN PLACE TO MAKE YOUR JOB EASIER, THAT'S MY GOAL.
THE OTHER THING THAT CITIES ARE DOING LIKE PADRE, PORT ARANSAS, ON A DAY LIKE WE KNOW THE NEXT SENIOR SKIP DAY IS GOING TO BE APRIL 20TH.
IT'S OUT THERE, IT'S ON SOCIAL MEDIA.
SO WHAT PEOPLE DO, WHAT OTHER CITIES DO, IS THEY'LL PUT AN ORDINANCE IN PLACE THAT SAYS NO LARGE TENTS ON THE BEACH, NO LARGE COOLERS WILL BE ALLOWED ON THAT DAY, AND THEY'RE DOING IT HERE AND THERE.
STATE OF TEXAS, NO LOUD MUSIC SPEAKERS, AND THERE IS ALSO ONE CITY THAT DOES PERMITS.
IF YOU HAVE MORE THAN 50 PEOPLE AT THE BEACH OR 100, YOU HAVE TO HAVE A PERMIT FROM THE CITY.
AND WE KNOW WE GET HIT WITH THOUSANDS OF PEOPLE HITTING IT, AND I WOULD JUST LIKE TO SEE US BE A LITTLE MORE.
PROACTIVE BECAUSE OUR CITIZENS ARE GETTING VERY TIRED.
AND THEN THE OTHER THING THAT I ACTUALLY TALKED A LITTLE BIT WITH MARTY MILES ABOUT WOULD BE THE POSSIBILITY OF MAYBE, YOU KNOW, SINCE THEY GO STRAIGHT TO WHERE THE RESIDENTS ARE, MAYBE DIRECTING THEM TO AN AREA WHERE THERE AREN'T A LOT OF RESIDENTS AND MAYBE IT'S YOU WAIVED THE FEES AT EAST BEACH OR SOMETHING, NOT THAT I'M TRYING TO DRAW THEM TO EACH BEACH, BUT WHAT CREATIVE IDEAS CAN WE DO TO MAKE IT LESS OF A BURDEN ON OUR CITIZENS? WE DON'T WANT TO MOVE THE PROBLEM, I DON'T THINK.
I DON'T WANT TO MAKE POINT WEST'S PROBLEM BEACHTOWN'S PROBLEM.
BUT I THINK THAT THE CHIEF HAS BEEN WORKING, HE'S TALKED TO MARTY ABOUT SOME OF THAT.
AND THE ONE THING I DON'T WANT TO DO IS PUT A BUNCH OF RULES IN PLACE THAT EITHER WE CAN ENFORCE OR THAT WE GET OUR OFFICERS HURT OR OTHERWISE ENGAGED IN.
I WANNA DO THIS IN A WAY THAT, AND I'VE TALKED TO DOUG AND I'VE BEEN GOING BACK AND FORTH ON THIS.
THAT POOR GUY SPENT THE WHOLE DAY OUT THERE AT THIS POLICE SPEEDO.
AND I DON'T WANNA PUT HIM IN A BAD WAY OR ANY OF OUR OFFICERS.
SO THIS IS SOMETHING WE'VE BEEN WORKING ON.
DOUG AND I'VE TALKED ABOUT IT.
BUT THESE IDEAS, LIKE SOME OF THE THINGS I MENTIONED.
WE'RE GOING TO TRY TO GET THE NO PARKING UP FOR THE 420, BUT THERE'S.
THE QUESTION IS WHETHER WE EVEN HAVE THIS OUR RIGHT AWAY, BUT WE'RE TRYING TO WORK THROUGH ALL THOSE ISSUES RIGHT NOW, SO.
COULD YOU KEEP THE COUNCIL ABREAST OF WHAT WE'RE DOING? WHAT I'LL DO IS I'LL SEND AN UPDATE.
WOULD YOU PLEASE? DO YOU HAVE ANY COMMENTS? YES, CHIEF BALLY, WE ARE
[04:30:02]
IN COMMUNICATION WITH MARTY, TRYING TO MOVE THE EVENT AND TRY TO CONTACT THE PROMOTERS AND TRY TO GET THESE EVENTS SCHEDULED TO WHERE WE CAN ISOLATE THEM.YES, IT COULD FROM MOVEMENT FROM WEST.
TO EAST COULD CAUSE AN ISSUE WITH BEACHTOWN AS WELL.
BUT WE DON'T WANNA CAUSE AN ISSUE FOR ANYONE.
WE REALLY WANT TO ULTIMATELY STOP IT.
I KNOW MARTY WANTS TO MAKE A COMMENT.
MY OPINION IS YOU CAN'T STOP THEM.
AND SO LET'S TRY TO CONTAIN IT.
LET'S TRY TO PUT IT IN A PLACE THAT WE CAN MANAGE IT.
I THINK EAST BEACH IS PERFECT.
WHETHER WE DISCOUNT OR DON'T DISCOUNT OR FREE, I DON'T THINK THAT'S IMPORTANT TODAY.
BUT IT'S A FABULOUS VENUE THAT CAN HOLD 4,000 CARS FOR THAT EXACT TYPE OF AN EVENT.
AND EVEN THOUGH THEY'RE YOUNG, LIQUOR IS LEGAL THERE.
THERE'S OTHER REASONS WHY IT JUST MAKES A LOT MORE SENSE TO ME PERSONALLY.
I ALSO BELIEVE, AND I DON'T KNOW, I NEED YOUR HELP A LOT.
IS THAT WE COULD PREVENT TRAFFIC GOING THROUGH THAT AREA AND JUST KEEP IT ON BROADWAY ALL THE WAY TO BODDICKER, RIGHT? AND IF YOU THINK ABOUT IT, THERE'S WHAT, A MILE AND A HALF, TWO MILES THAT HAS NO TRAFFIC ON IT FROM THE BEGINNING TO GET TO BODDICKER.
AND THEN A MILE AND A HALF, TWO MILES IN BODDICKER.
SO REALLY LONG TRAFFIC LINES IS OKAY.
WHAT I DON'T KNOW, WE'VE BEEN TRYING TO FIGURE OUT IS HOW DO WE GET THEM.
HOW DO WE ROUTE THEM TO THE EAST END INSTEAD OF TAKING THE FIRST RIDE ON FREE FREE BUGGY NUGGETS.
I'LL BE HONEST WITH YOU, AND I'M SURE THE PARENTS WANT TO HEAR THIS, I REALLY THOUGHT ABOUT SHOULD I PUT A BAND OUT THERE, SHOULD WE DO FREE WATER, SHOULD WE JUST MAKE IT A COOL EVENT TO TRY TO MAKE SURE THAT'S WHERE THEY WANT TO GO.
BUT THEIR RESEARCH IS BEGINNING TO SHOW IF IT'S NOT THEIR IDEA, THEY WANT NOTHING TO DO WITH IT.
RIGHT? THAT'S THE WHOLE SENIOR SKIP DAY MENTALITY.
AND AS AN EXAMPLE, THEY'RE WORKING RIGHT NOW, BUT THEY CAN'T FIND, SO FAR, THEY CAN'T FIND ANYTHING THAT SAYS 420.
WE'VE, A LOT OF US HAVE HEARD IT.
WHAT DO YOU CALL THAT DEPARTMENT? CRIME ANALYSTS.
THEIR ANALYSTS CAN'T FIND IT OR HAVEN'T FOUND IT YET.
WELL, IT MIGHT BE LIKE EMOJIS FOR 2 0.
BUT, AND THERE ARE SO MANY DIFFERENT COUNTER INTELLIGENCE GOING AGAINST IT AS WELL, BECAUSE THEY'RE POSTING THINGS THAT THEY NEVER SHOW UP FOR.
BUT WE GEAR UP FOR THEM BECAUSE YOU GEAR UP FOR ANYTHING, YOU CAN'T GEAR UP FOR EVERYTHING.
AND THE THING THAT WAS FRIGHTENING ABOUT THIS YEAR IS THEY NAMED AN ADDRESS TO A HOUSE THAT NOBODY HAD RENTED THAT THEY ARE JUST NOW GOING INTO NEIGHBORHOODS AND TAKING OVER HOUSES.
WE WERE OUT THERE FOR THAT EVENT AND JUST BY US GEARING UP AND HAVING A LOT OF MANPOWER OUT THERE, A LOT OF RESOURCES, THEY NEVER SHOWED.
SO WE GEARED UP FOR EVERYTHING.
THEY SEE YOU ALL JUST KEEP DRIVING BY.
WELL, YEAH, THEY NEVER SHOWED UP.
I DON'T WANT TO BE SEEN AS CONDONING.
I KNOW THE GOAL IS TO STOP IT.
I DON'T WANT TO BE SEEN AS CONDONING IT.
TONY BROWN PUT IT INTO PERSPECTIVE THAT EVERY DAY A KID SKIPS SCHOOL, IT COSTS THE SCHOOL DISTRICT MONEY.
AND, YOU KNOW, I DON'T WANT A SCHOOL DISTRICT TO BE, YOU KNOW.
SAID AT THE CITY OF GALVESTON FOR THOSE SORTS OF THINGS.
I AGREE THAT'S WHY I GOT OFF THE IDEA OF BAND AND MAKE IT A COOL EVENT.
I JUST GOT AWAY FROM IT BECAUSE THEN WE'RE ENCOURAGING IT WHICH IS ABSOLUTELY THE WRONG THING.
IN APRIL 20TH IT'S A MONDAY THIS YEAR SO WE GOT TO BE CAREFUL WITH TRAFFIC PLANS BECAUSE THAT AFFECTS UTMB, IT AFFECTS THE PORT, IT AFFECTS CRUISE SHIPS WHICH WE HAVE ON MONDAY NOW, IT AFFECTS A WHOLE LOT OF THINGS SO WE GOT TO BE REAL CAREFUL WITH WHAT WE DO THAT.
ACTUALLY, MONDAY WOULD BE A BETTER DAY FOR A SENIOR SKIP DAY THAN A FRIDAY PROBABLY FOR US BECAUSE IT'S GOING TO IMPACT FEWER PEOPLE ON THE WEST END.
THE POSITIVE THING IS WE KNOW WE CAN DO VEHICLE INSPECTION CHECKPOINTS.
AND I WANT TO KNOW WHO SENDS THEIR KID TO SCHOOL WITH A SEMI AUTOMATIC.
I JUST WANT TO KNOW WHO BUYS THEIR KID A NEW HELLCAT.
WE'RE DOING A LOT AND POSSIBLY MOVING IT OUT TO EAST BEACH WILL HELP ALLEVIATE THE TRAFFIC AT 61ST.
BECAUSE YOU HAVE THREE AVENUES, YOU CAN TAKE SEAWALL, BROADWAY, OR HARPSIDE.
AND THERE'S WAYS YOU CAN GUIDE THAT, AND THERE'S SOME REAL EXTREME WAYS, AS ALEX POINTED OUT, THAT WOULD BE VEHICLE CHECKPOINTS.
THE PROBLEM IS, ON A MONDAY, I DON'T WANT TO HAVE TO CHECK EVERY WEST END RESIDENT THAT'S TRYING TO GO TO WORK THAT DAY.
BUT THEY DON'T COME THAT EARLY, I GUESS, ALTHOUGH THEY SHOWED
[04:35:01]
UP PRETTY DAMN EARLY THIS YEAR.I MEAN, 15 TO 20 YEARS EAST BEACH WAS THAT'S WHERE WE WENT.
THOUSANDS OF PEOPLE THERE EVERY WEEKEND.
GIVE COUNCIL AN UPDATE BEFORE 420.
WE'VE GOT A GOOD PARTNER IN MARLEY.
AND I THINK, AND IT WAS FUNNY, I HAD THIS AT ONE OF MY COMMUNITY MEETINGS.
SOMEONE BROUGHT UP THE QUESTION, ARE YOU AGAINST SPRING BREAK? AND I AM NOT AGAINST SPRING BREAK, BUT I AM AGAINST PEOPLE COMING TO OUR ISLAND AND BEING COMPLETELY DISRESPECTFUL.
AND THAT'S WHAT WE HAVE TO PUT A STOP TO.
WELL, YOU KNOW, SOME OF THE CITY, DAYTONA, PANAMA CITY, I THINK, THEY PRETTY WELL SHUT THINGS DOWN THERE.
HOW THEY DID IT, I DON'T KNOW.
WELL, THAT'S WHAT SOUTH PADRE IS DOING.
THEY'RE JUST LIKE, YOU KNOW WHAT, WE'RE JUST NOT EVEN GOING TO OPEN.
PANAMA CITY, THEY OUTLAWED 100% NO ALCOHOL ON THE BEACH.
DOESN'T MATTER IF YOU'RE OF AGE OR NOT.
NO COOLERS, NO ALCOHOL ON THE BEACH.
PERIOD YEAH AND THAT LIKE IN SOUTH PADRE AND PUERTO FRANCIS WHERE THEY'RE DOING NO LARGE CORES NO LARGE UH TENTS NO LOUD MUSIC THEY'RE HAVING A LOT OF SUCCESS WITH IT BUT ANYTHING
[4.L Discussion of the automated water meter reading system, including its capabilities and why the city is not using the system as designed (Robb/Rawlins/Porretto - 15 min)]
THAT WE CAN MAKE IT OFFICIAL SEEMS LIKE IT WOULD MAKE YOUR JOB EASIER ALL RIGHT.ITEM 4L, DISCUSSION OF THE AUTOMATED WATER METER READING SYSTEM, INCLUDING ITS CAPABILITIES AND WHY THE CITY IS NOT USING THE SYSTEM AS DESIGNED.
SO OUR SYSTEM HAS THE ABILITY TO NOTIFY OUR CITIZENS WHEN THERE'S A WATER MAIN BREAK.
I'M JUST CURIOUS WHY WE'RE NOT USING IT.
WE WENT TO AN AUTOMATED SYSTEM THAT HAS SO MANY WONDERFUL FEATURES, AND WE'RE NOT USING THEM.
WE HAD TWO MAJOR WATER BREAKS WHERE THE TWO COMBINED.
WE HAD 500 PEOPLE WITHOUT WATER, AND WE'RE NOT NOTIFYING THAT THERE'S A WATER BREAK.
AND DOING A PUBLIC RELEASE, I MEAN, YEAH, THAT'S ONE WAY, BUT OUR SYSTEM IS BUILT THAT WE COULD KNOW, AND I JUST WOULDN'T KNOW WHY WE'RE NOT USING OUR SYSTEM TO ITS FULL CAPACITY.
CAN YOU CLARIFY WHAT ASPECTS OF THE SYSTEM THAT YOU KNOW? WELL, APPARENTLY WHEN THERE'S A WATER BREAK, YOU CAN, LIKE, GEOFENCE THE AREA WHERE THE WATER BREAK IS, AND YOU CAN TEXT PEOPLE THROUGH THE APP THAT THERE'S BEEN A WATER BREAK.
TO BE HONEST, I'M NOT AWARE OF THAT CAPABILITY.
WE HAVE RADAR AS A SYSTEM WHERE WE HAVE DEVICES THROUGHOUT THE SYSTEM THAT DO MEASURE TRANSIENT EVENTS.
HOWEVER, I'M NOT AWARE OF A PUBLIC NOTIFICATION FEATURE.
I WENT IN AND READ THEIR WEBSITE AND IT SAID THAT'S ONE OF THE FEATURES THAT YOU CAN NOTIFY ESPECIALLY THE PEOPLE THAT ARE SIGNED UP FOR THE WHATEVER YOU CALL THAT APP.
BUT WE PAID A LOT OF MONEY FOR BRAND NEW METERS, AND I WOULD JUST LIKE TO SEE US USING THEM TO ITS FULL CAPACITY.
I THINK YOU'RE KIND OF MIXING UP A COUPLE DIFFERENT SYSTEMS. THIS IS THE BADGER SYSTEM.
RIGHT, THE AMI SYSTEM, WHICH INVOLVES THE METERS, DO HAVE A NOTIFICATION FEATURE, BUT IT'S RELATED TO LEAKS AT THEIR HOUSE.
AND THEY HAVE TO BE SIGNED UP THROUGH ION WATER.
NO, BUT YOU COULD NOTIFY PEOPLE THROUGH THAT SAME FUNCTION THAT THERE'S A WATER MAIN BREAK.
IT WOULD, I DON'T THINK THAT WE CAN DO IT IN THE WAY THAT YOU'RE THINKING.
GET THE BADGER WRAPPED IN HERE AND TELL THEM TO SHOW US HOW.
YEAH, LET'S CHECK ON IT AND AND IF THEY CAN'T, THEY NEED TO TAKE IT OFF THE WEBSITE.
SO ANY NOTIFICATIONS THAT CAN GO OUT, IT'S THROUGH ISLAND WATER.
ABOUT 51% OF THE ISLAND IS SIGNED UP.
[04:40:03]
SO THAT WOULD STILL ONLY NOTIFY HALF OF THE RESIDENTS.WELL, AT LEAST HALF OF THE RESIDENTS COULD GET IT UP OR YOU KNOW THE QUESTION IS WHETHER WE CAN SEND OUT AN ALERT THROUGH ION WATER OKAY I KNOW I WENT THROUGH THE TRAINING THE INITIAL TRAINING AND THAT WAS NEVER BROUGHT UP TO ME BUT IT MAY BE A NEW FEATURE THAT WE'VE THAT MARIE IS UNLOCKED LET'S FIND OUT LET US KNOW BRIAN WOULD YOU GIVE A SURE BACK TO COUNCIL WE REMEMBER WE DID ALL THAT WITH THE IRON WATER PEOPLE AND WENT THROUGH ALL THE STUFF AND THAT WAS NOT PART OF IT BUT WE'RE I'M HAPPY TO LEARN PEOPLE LOVE THAT APP BY THE WAY I LOVE IT.
WELL, IT CERTAINLY SAVED US WITH BEING ABLE TO SHUT OFF THE IRRIGATION SPRINKLERS.
WE'RE ONE OF THE ONLY CITIES THAT ARE USING IT IN THAT WAY.
THAT I HAD A WATER LEAK, BUT I COULD NEVER IDENTIFY ON THE CAMERAS AT ALL THAT I HAD A WATER LEAK.
YOU MAY HAVE HAD A TOILET STUCK OR SOMETHING.
NO, MAINTENANCE IS A BIG THING IN THE PARETO HOUSE.
I NEED TO HAVE YOU COME OVER AND BUY IT.
[4.M Discussion of Restoring Texas Heroes Monuments and Other Monuments in Galveston (C. Brown/Porretto/Rawlins/Robb/B.Brown 15 min)]
I'M GOING BACK AND FORTH.NOW I KNOW WHO TO CALL IN THE MIDDLE OF THE NIGHT FOR A PLUMBING PROBLEM.
ALL RIGHT, ANY OTHER COMMENTS ON THIS? TYSON, THANK YOU.
COPY ME ON THE CORRESPONDENCE, PLEASE.
WE'RE MOVING TO OUR LAST ITEM, 4M, PLEASE.
ITEM 4M, DISCUSSION OF RESTORING TEXAS HEROES MONUMENTS AND OTHER MONUMENTS IN GALVESTON.
THIS IS A TOPIC THAT LOOKS LIKE ALL OF US LIKE IT.
AND IT'S A TOPIC THAT I KNOW WE'VE DISCUSSED BEFORE.
I'M JUST GOING TO GO TO THE BOTTOM LINE FOR THE BREVITY OF THIS.
WE JUST NEED TO TAKE THESE OVER, BRIAN, ESPECIALLY THE HEROES MONUMENT.
YOU THINK WE'RE BEYOND THE STATUE OF LIMITATIONS? WE NEED TO WE NEED TO GOOD ONE.
YOU'RE RECORDING THESE, AREN'T YOU? YEAH.
WE JUST NEED TO TAKE THAT OVER.
WE NEED TO FIND THE FUNDING FOR IT.
LET'S JUST HANDLE THIS, NOTIFY THE TEXAS HISTORIC COMMISSION OR WHOMEVER.
WE'RE GOING TO START OUR OWN TEXAS REVOLUTION ON THE TEXAS REVOLUTION.
AND I READ BOB'S ARTICLE, AND WE'RE WORKING ON THAT ALREADY.
WE HAVE A PRETTY GOOD INVENTORY OF WHAT WE'VE GOT ON OUR PROPERTY.
THE ISSUE I'VE GOT IS A LOT OF THESE MONUMENTS, NOT THE HEROES MONUMENT, BUT WE'VE GOT THINGS OUT THERE SITTING IN THE MIDDLE OF THESE ESPLANADES, AND YOU SEE THE TOURIST FROGGER GOING ON TO GO THERE.
CROSSING BROADWAY, SOME OF THESE MONUMENTS ARE JUST NOT IN THE RIGHT PLACE.
AND I THINK ULTIMATELY WE NEED TO ESTABLISH A GOOD AREA TO PUT SOME OF THESE MONUMENTS THAT ARE MORE ACCESSIBLE TO THE PUBLIC.
NOBODY'S READING ALL THOSE NAMES DRIVING BY AT 35 MILES AN HOUR ON BROADWAY, AND NOBODY'S CROSSING THE STREET TO GO SIT ON THE BENCHES AND GET HIT ON A ROUTINE BASIS TO GO, AND GOD HELP THEM IF THEY ARE, TO LOOK AND SIT AND OBSERVE THE MONUMENT.
WE NEED TO COME UP WITH A BETTER PLAN FOR THAT.
I DON'T WANT TO SHARE IT TODAY, BUT BECAUSE, YOU KNOW, IDEAS GET MISCONSTRUED AS DECISIONS.
OH, REALLY? SO, YES, ONE THING THAT BOBBY MENTIONED, A PLAN.
SO ADC, WHEN WE MERGED THE YES.
YOU GUYS WERE TALKING ABOUT IT.
I GUESS ANTOINETTE OR WE REPLIED FOR A GRANT FROM THE HOUSTON ENDOWMENT.
WHAT IT'S GOING TO INCLUDE IS NOT ONLY OUR PUBLIC ART BUT MONUMENTS TECHNICALLY ARE PUBLIC ART AND YOU KNOW THIS WAS THE BECKMAN HISTORIC PRESERVATION BOARD AND ALL OF THAT THAT ENTAILED TOO.
WE'RE GOING TO HAVE A MAINTENANCE PLAN, WE'RE GOING TO GIS LOCATE EVERYTHING, PERHAPS POTENTIALLY RELOCATE, FIND PUBLIC SPACES TO PUT THESE THINGS IN, AND HOT TAX IS GOING TO DO IT.
YEAH, THE CITY OWNS IT ACCORDING TO OUR CURRENT.
WELL, THAT'S THE OTHER THING, AND I MENTIONED IT TO DONNA IN PASSING THE OTHER DAY, WAS THAT WE PROBABLY NEED TO GET A REAL ESTATE ATTORNEY OR HAVE IT INTERNALLY.
I THINK THAT'S JUST A DISCUSSION YOU ALL ARE GOING TO HAVE TO HAVE AND BRING BACK TO COUNCIL.
BUT I THINK WE'RE ALL FULL ON BOARD OF MAINTAINING IT.
WE'VE SPENT MONEY ON IT PREVIOUSLY.
WE CAN AGREE TO DISAGREE ABOUT SPENDING THE MONEY 14 MONTHS AGO.
I'M SENDING THE STATUE OF BELIZE TO BUTCH'S HOUSE.
THIS IS SOMETHING THAT THE MAYOR AND I TALKED ABOUT WAS ESTABLISHING SOME KIND OF MONUMENT STEWARDSHIP COMMITTEE ON THE CULTURAL ARTS COMMISSION OR SOMETHING LIKE THAT.
WELL, THE CULTURAL ARTS COMMISSION MOVED INTO THE ADC, SO, AND TRUST ME, THAT BOARD IS STACKED WITH PEOPLE WHO ARE
[04:45:01]
INTO THE PRESERVATION OF PUBLIC ART AND MONUMENTS AS WELL.YEAH, I THINK THAT'S A GREAT IDEA.
AND THEN ESTABLISHING THE OWNERSHIP OF THE TEXAS HEROES MONEY AND THEN NOT ONLY THAT, LET'S JUST SAY THE STATE SAYS THEY OWN IT.
I INVITED SUSAN POLK, SHE WAS SUPPOSED TO BE HERE BUT COUNCIL RUNS LATE AS WE KNOW.
SHE WAS GONNA SPEAK TO SOME OF THE RESEARCH THAT THE DAUGHTERS OF THE REPUBLIC OF TEXAS HAVE DONE.
YOU CAN FIND OWNERSHIP BOTH WAYS ON RESEARCH.
YEAH, I MEAN, HENRY ROSENBERG GAVE THE CITY 50 GRAND BACK IN, YOU KNOW, I MEAN, THERE'S A LONG LINE, AND THEN IT KIND OF JUST GOES AWRY A LITTLE BIT, WHICH HAPPENS TO MONUMENTS.
BUT WE'VE SPENT MONEY ON IT BEFORE.
I THINK IT'S A GREAT PARTNERSHIP.
IT SEEMS LIKE WE SHOULD OWN IT, BUT WE NEED TO KIND OF BE CLEAR ABOUT WHAT THE PROS AND CONS OF OWNING IT ARE.
YOU KNOW IT'S NOT EVEN A LANDMARK, IT'S NOT EVEN A GALVESTON LANDMARK.
IN FACT THE GHF WAS GOING TO APPLY FOR THE STATE'S ARCHAEOLOGICAL LANDMARK, WHICH IS THE HIGHEST DESIGNATION OF ANY HISTORIC THING THAT YOU CAN GET, AND THE STATE WOULDN'T ACCEPT THE NOMINATION BECAUSE THE OWNERSHIP IS NOT CLEAR.
WELL GRANTED, SEE WHAT I DID THERE.
WE MAY NOT OWN IT, WE NEED TO FIX IT, I THINK.
I THINK DON BUCKINGHAM IS THE DAUGHTER OF THE REPUBLIC OF TEXAS, SO I DON'T THINK IT WOULD BE HARD TO GET HER TO HELP GETTING THOSE HISTORICAL.
ONE IS GETTING THE MONUMENT RFP OUT THERE NOW.
IT DOESN'T ATTRACT ANY ATTENTION TO US SPENDING HOT ON A QUESTIONABLE OWNERSHIP THING.
WE DON'T RUN THE ESPLANADES, BOB, BUT WE MAINTAIN THEM.
AND THE OTHER THING IS GETTING THIS DATA.
I'VE GOT ABOUT 40 PAGES OF RESEARCH THAT I CAN GET TO YOU GUYS ON STUFF THAT I'VE ALREADY DONE.
WE'LL TAKE THE FIRST 38 PAGES, BOB.
I'LL GET IT TO THE COMMITTEE THAT YOU'RE TALKING ABOUT THAT'S GOING TO BE LOOKING AT THIS STUFF AND TO BRIAN.
AND WE MIGHT WANT TO THINK ABOUT, WELL, DO WE WANT TO CHANGE THE CODE THAT SAYS WE CAN ONLY USE THAT ONE EIGHTH OF A PENNY FOR HISTORIC PRESERVATION ON CITY.
WE NEED TO LOOK AT THAT, IN MY OPINION, BECAUSE I DON'T KNOW HOW MUCH MONEY IS IN THERE, AND WE'RE ONLY TAPPING IT.
WE'LL LET THE ATTORNEYS FIGURE IT OUT.
NO, NO, NOT THE OWNERSHIP, BUT THE FUNDING FROM THAT.
BEFORE YOU ALL TAP THAT, WE'VE GOT A LOT OF MONEY TO SPEND ON.
GARDEN OF ORION, THIS BUILDING, A WHOLE LOT OF OTHERS.
WE HAD IT SITTING THERE BEFORE.
I MEAN, I THINK IT'S A I THINK ONCE ALL THE CITY PROJECTS ARE DONE, I'M HAPPY TO YEAH, RIGHT NOW, YOU'RE GOING TO USE IT ALL UP.
THIS IS WHY WE SHOULD HAVE A TARGET FUND BALANCE THAT WE SPEND THERE IS A FUND BALANCE IN THERE.
WHO THINKS THEY'RE GOING TO USE IT? I RECOMMEND THAT WE COMMISSION AN EXPERT TO COME DOWN TO DO A COMPLETE ASSESSMENT AND HELP US DEVELOP A REPAIR SCOPE.
SO THAT WE WOULD HAVE A PLAN IN PLACE MOVING FORWARD FOR EACH ONE OF THESE MONUMENTS.
BEFORE WE DO THAT, BUTCH, I THINK WE MAY ACTUALLY HAVE SOME USE OF ENDOWMENT MONEY TO PAY FOR THAT.
DO WE NEED TO APPROVE AN RFP THEN? THAT NEEDS TO GET DONE REGARDLESS.
I THINK THE RFP HAS TO BE QUANTIFIED IN WHAT WE'RE ACTUALLY EXPECTING.
WE'VE GOT A GOOD SCOPE FOR THIS ONE.
I'VE ALREADY COMPLETED THE SIDNEY SHERMAN.
SO WHAT I'VE DONE WAS I'VE BACKED THE SIDNEY SHERMAN SCOPE OF WORK OUT OF THE REVISED SCOPE OF WORK.
THIS IS SPECIFICALLY FOR THE HEROES OF TEXAS.
THAT'S WHY THE MOTIONS, THE WAY IT IS, DIRECT THE CITY MANAGER TO REISSUE THE RFP FOR THE RESTORATION OF THE TEXAS HEROES OF TEXAS.
WOULD THAT BE DEFINITIVE ENOUGH? IT COULD BE.
OR WHAT ABOUT INCLUDING? WELL, FIRST OF ALL, THE GOAL OF THE RFP IS TO MAKE SURE WE GET PROPOSALS FOR THE BEST CONSERVATION WE CAN GET ON THAT.
BUT THE OTHER THING IS TO DIRECT THE CITY MANAGER TO COME UP WITH A PLAN FOR, I COUNTED AT LEAST 11 MONUMENTS AROUND.
AND I CAN TAKE MY BACK ON WHAT YOU JUST SAID, COUNCILMAN.
THIS IS WHERE WE GOT INTO THE TROUBLE LAST TIME.
WE ADDED MORE THAN WHAT WE NEEDED.
PUT IT ON NEXT MONTH'S AGENDA.
BOB, AND IT'S AT ADC, AND TREY CLICK IS THE CHAIR THERE.
YOU CAN PUT IT ON AN AGENDA ITEM.
I'LL ASK TREY TO PUT IT ON AN AGENDA ITEM, BUT WE'VE BEEN TALKING ABOUT IT.
I DON'T WANT TO MESS UP THE DEAL WITH IT, AND ANTOINETTE AND TREY HAVE WORKED ON SO HARD WITH THE HOUSTON ENDOWMENT.
[04:50:02]
YEAH.THAT'S A GRANT THEY'RE APPLYING FOR TO START THIS PROCESS.
CAN I HOP ON THE TABLE AND BREAK BREAD WITH THIS GUY? YES, YOU CAN.
AS LONG AS YOU DON'T SOUR OUR BREAD.
WE'RE ITALIANS, RIGHT? WE DON'T SOUR BREAD.
SOMETIMES OVER PEOPLE'S HEADS IF IT'S HARD.
HEY, IT DEPENDS ON HOW HEAVY AND HARD IT IS.
WE'VE GOT ALL THESE DIRECTORS RUNNING AROUND, YOU KNOW.
BRIAN, TO HIT THE NAIL ON THE HEAD, THERE IS A MOVEMENT THAT'S TAKING PLACE RIGHT NOW WHERE I WAS INVITED TO A MEETING TO ADDRESS THE SECOND HALF OF WHAT BUTCH SAID, AND THAT IS TO ISSUE AN RFP, HOPEFULLY IN THE NEAR FUTURE, ONCE THEY FIGURE OUT HOW THEY WANT TO MOVE ABOUT IN THAT RFP, TO ADDRESS ALL THESE MONUMENTS, STATUTES, ARTWORK, WHO OWNS IT, AND HOW TO GO ABOUT RESTORING IT.
SO ARE YOU SAYING YOU'RE GOING TO HIRE SOME KIND OF RESTORATION EXPERT TO BE ABLE TO CRAFT AN RFP FOR ALL THE MONEY? NO, NO, NO.
WE'RE DOING AN RFP TO GET THAT GUY.
AND THAT'S HIS JOB IS GOING TO BE TO INVENTORY, ANALYZE THE CONDITION OF ALL THESE MONUMENTS, WHAT'S THE PRIORITIES, WHAT KIND OF IS BEST PRACTICE FOR RESTORATION AND ALL THAT.
THE GENTLEMAN THAT HAS ALREADY DONE THE SHERMAN TEXAS, YEAH, HE DID THE SHERMAN.
THE SIDNEY SHERMAN MONUMENT JUST COMPLETED.
AND HE'S ALSO THE INDIVIDUAL WHO ALSO BIDDED ON THIS ONE OUT HERE.
HOW ARE YOU DOING? GOOD TO SEE YOU.
SO HE WOULD BE A PERFECT EXAMPLE OF SOMEONE WHO WOULD BE ELIGIBLE TO DO THAT.
AND I DO RESTORATION WORK MYSELF.
NO, IT'S NOT BECAUSE I'M NOT BIDDING ON IT.
SO ANYWAY, I SPOKE TO HIM AT LENGTH AND BASED UPON HIS BACKGROUND, HIS KNOWLEDGE AND HIS EXPERIENCE, I MEAN HE'S A WORLD CLASS GUY.
SO UM HE'S 30 YEARS OF EXPERIENCE.
HOW ARE YOU GOING TO IDENTIFY WHICH MONUMENTS HE'S SUPPOSED TO GO LOOK AT? HE'S GOING TO BE GETTING DIRECTION FROM INTERNET INTO AN INTERNET GROUP.
BECAUSE WE'RE LOOKING AT ALL OF THEM.
THEY'RE LOOKING AT ALL OF THEM, THAT'S CORRECT.
WELL ALL OF THEM, YOU KNOW, MY RESEARCH THERE'S ABOUT 11 OF THEM, MOST OF THEM HAVE QUESTIONABLE BUT THE 11, LIKE YOU COULD CALL THEM, PUBLIC HISTORIC.
I DON'T KNOW IF HE'S GOING TO BE ABLE TO SHOW YOU WHO OWNS IT.
WE'RE GOING TO HAVE TO BE ABLE TO DICTATE THAT.
WE'RE GOING TO GIVE HIM PROBABLY A LIST, AND IN ADDITION TO THAT LIST, HERE ARE OTHER POTENTIAL THINGS.
WELL, WE CAN FIND OUT WHO OWNS IT.
WE WOULD HAVE TO DICTATE THAT.
HE WOULD NOT BE ABLE TO DO IT.
HE'LL BE ABLE TO IDENTIFY WHAT IT IS AND WHAT'S THE RESTORATION.
THAT'S NOT HIS AREA OF EXPERTISE, THE OWNERSHIP OF IT.
NO, NO, THAT'S NOT WHAT WE'RE SAYING.
WE'RE TELLING HIM WHO THE OWNER IS.
WHY IS THAT IMPORTANT? IT'S IMPORTANT BECAUSE IF WE DON'T UNLESS WE CHANGE THE CITY CODE WE CAN'T FUND THESE MONIES UNLESS WE OWN THEM BUT THERE'S MULTIPLE THINGS THAT WE MAINTAIN IN THE CITY THAT WE DON'T OWN THIS YEAH BUT WE DON'T USE THESE ARE HISTORIC ASSETS AND IF IT'S A HISTORIC ASSET AND CITY OWNS IT IT'S ELIGIBLE FOR THAT ONE INCH THAT ONE A HOT OKAY I GET THAT BUT IN THE MEANTIME LIKE LET'S LET'S I'M NOT SAYING WAIT FOR IT.
SOMEONE SUES US FOR DOING THE TEXAS HEROES MONUMENT.
I THINK AN ATTORNEY WOULD PICK THAT UP.
ALSO, MIKE, DID YOU KNOW ITALIANS OKAY, I UNDERSTAND.
I JUST DON'T WANT TO DELAY IT.
CAN'T YOU SEE THAT STATUE'S TALKING TO THE PEOPLE? EXCUSE ME JUST A SECOND.
WE'VE GOT TO USE SCAFFOLDING UP THERE BECAUSE BEING SHORT, YOU KNOW.
YOU'RE GOING TO BRING THIS FORWARD TONIGHT, ALEX.
WE'LL GET THAT MOVING FORWARD.
I'M COMPLETELY IN FAVOR OF REFURBISHING THE HEROES MONUMENT.
THE ONLY PROBLEM IS I'M NOT IN FAVOR OF PUTTING YOUR LIKENESS ON THE FACE OF IT.
WE'RE DOING OUR OWN AT MOUNT RUSHMORE, BUT IT'S IN THE SAND DUNES, SO IT'S KIND OF ALL RIGHT.
ANY OTHER COMMENTS? IT IS 2.26 P.M.
WE HAVE GONE THROUGH ALL THE ITEMS ON OUR MARKET.
WHAT'S UP, JENNA? JENNA, WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.