[00:00:06]
[A. CALL TO ORDER]
IN HIS ABSENCE, I'LL BE, UH, CONDUCTING A MEETING.SO, CHAIRMAN RICHARD MOORE IS ABSENT.
TODAY WE HAVE VICE CHAIR WILLIE GONZALEZ, COMMITTEE MEMBER SHEILA LID STONE HERE.
WE ALSO HAVE AN ATTENDANCE CHAIRMAN, DICK PEARSON.
HERE, VICE CHAIR JEREMY PATTERSON.
AND ALSO WE HAVE JIM GALPER IN PLACE OF TONY BROWN.
WE HAD A DECLARATION OF QUO, WHICH WE DO DECLARATION OF CONFLICT OF INTEREST BY TRUSTEES.
ANYONE, IF WE COULD HAVE THE INVOCATION.
WE HAVE THAT PERSON HERE YET, SO LEMME SEE.
I DON'T NOT SHOWN UP, IF NOT THE BULLPEN.
JEFFREY, IF YOU DON'T MIND, COULD YOU PLEASE LEAVE US IN PRAYER? WE APPRECIATE PRAYER.
HEAVENLY FATHER, THANK YOU FOR THIS BEAUTIFUL FALL DAY.
UH, THANK YOU FOR ALL THE GRACES YOU BESTOWED ON US THE LAST WEEK AS WE'VE CELEBRATED OUR BICENTENNIAL HERE AT THE PORT.
THANK YOU FOR KEEPING US SAFE.
UH, OUR HEARTS ARE WITH THE PEOPLE IN JAMAICA TODAY AS, UH, THEY PREPARE FOR HURRICANE MELISSA.
AND SO WE'RE APPROACHING, UH, LORD, UH, GIVE THEM PEACE ALSO.
LORD, HELP GUIDE US THROUGH THIS MEETING TODAY AND, UH, AND, UH, AS WE PREPARE FOR 2026 AND THE OPENING OF BRUCE 16, UH, WE ASK THIS IN YOUR NAME, UH, LORD CHRIST STATEMENT.
[B. PRESENTATIONS AND ANNOUNCEMENTS (Part 1 of 2)]
ALRIGHT, WE HAVE PRESENTATIONS AND ANNOUNCEMENTS, SENATE RESOLUTION FOR THE BICENTENNIAL.ARE THEY AVAILABLE? READY? MM-HMM
UH, I'M JARED VARGAS, REPRESENTING CONGRESSMAN RANDY WEBER.
HE WAS SUPPOSED TO BE HERE THIS MORNING, BUT HE HAS UNFORTUNATELY FALLEN ILL WITH HIS STOMACH BUG.
UM, SO I'LL BE PRESENTING ON HIS BEHALF, AND HE SENSES HIS, HIS REGRETS.
UM, 200 YEARS IS, IS SUCH A A, THIS HAS BEEN A MOMENTOUS WEEK FOR, FOR THE COURT, AND WE ARE, UH, ABSOLUTELY THRILLED TO REPRESENT Y'ALL AND THE CONGRESSMAN.
UH, WE'LL BE DOING A FLOOR SPEECH IN THE FUTURE, BUT WE HAVE THE TEXT OF THAT TO PRESENT TO Y'ALL.
UM, OF COURSE, WITH, WITH CONVERSE CURRENTLY SHUT DOWN, HE HASN'T ABLE BEEN ABLE TO MAKE IT, BUT IT IS ABSOLUTELY ON HIS AGENDA TO, AND WE'LL SEND Y'ALL THE VIDEO OF IT, UH, WHEN HE DOES IT AS WELL.
BUT I'LL GO AHEAD AND READ, UH, THIS, UH, THE SPEECH, WHICH IS, WHICH HAS BEEN ENTERED INTO THE CONGRESSIONAL RECORD, HONORABLE RANDY WEBER OF TEXAS IN THE HOUSE OF REPRESENTATIVES, MR. WEBER OF TEXAS.
MR. SPEAKER, I ARRIVED TO CELEBRATE A TRUE TEXAS TREASURE, 200 YEARS OF THE BOARD OF GALVESTON.
IT IS AN HONOR TO MARK THIS HISTORIC MILESTONE AND TO RECOGNIZE THE MEN AND WOMEN PAST AND PRESENT WHOSE HARD WORK, GRIT, AND VISION HAVE MADE THIS PORT WHAT IT IS TODAY.
I ESPECIALLY WANT TO THANK ROGER REESE AND THE PORSCHE LEADERSHIP FOR THEIR STEWARDSHIP OF THIS VITAL GATEWAY TO THE GULF.
MR. SPEAKER, I'VE LIVED ON THE TEXAS GULF COAST MY WHOLE LIFE DOWN HERE.
PORTS AREN'T JUST INFRASTRUCTURE, THEY'RE THE BACKBONE OF OUR ECONOMY, REPRESENTING SEVEN PORTS MORE THAN ANY OTHER MEMBER OF CONGRESS.
I KNOW FIRSTHAND HOW CRITICAL THEY ARE TO JOBS, COMMERCE, ENERGY, AND AMERICA SECURITY.
THE PORT OF GALVESTON IS A SHINING EXAMPLE, ESTABLISHED ON OCTOBER 17TH, 1825 BY THE CONGRESS OF MEXICO.
IT QUICKLY BECAME A HUB OF STRATEGIC IMPORTANCE DURING THE FIGHT FOR TEXAS INDEPENDENCE.
IT SERVED AS THE HOME OF THE TEXAS NAVY, BRAVE MEN WHO RISKED EVERYTHING TO SECURE FREEDOM.
THAT FIGHT LAID THE FOUNDATION FOR GALVESTON TO GROW INTO ONE OF THE MOST IMPORTANT CITIES ON THE GULF COAST.
IN 1940, THE PEOPLE OF GALVESTON PROUD, DETERMINED, AND INVESTED IN THEIR FUTURE, CAME TOGETHER TO PURCHASE THEIR PORT THAT MOVE SECURED LOCAL CONTROL AND ENSURED THE PORT'S PLACE AS AN ENGINE OF GROWTH FOR GENERATIONS.
FROM A VITAL SHIPPING CENTER TO ONE OF THE BUSIEST CRUISES PORTS IN THE NATION, THE PORT OF GALVESTON CONTINUES TO ADAPT AND EXPAND.
THIS FALL, A FOURTH CRUISE TERMINAL WILL OPEN, BRINGING MORE VISITORS, MORE COMMERCE, AND MORE OPPORTUNITY FOR SOUTHEAST TEXAS.
200 YEARS IS NO SMALL ACHIEVEMENT.
THE PORT OF GALVESTON HAS STOOD THE TEST OF TIME THROUGH STORMS, WARS, AND ECONOMIC CHANGE, AND IT HAS REMAINED A SYMBOL OF TEXAS PERSEVERANCE AND PROSPERITY.
MR. SPEAKER, HERE'S TO THE NEXT 200 YEARS OF SUCCESS FOR THE PORT OF GALVESTON, FOR GALVESTON ISLAND, AND FOR THE GREAT STATE OF TEXAS, I YIELD BACK.
VERY KIND OF, I BELIEVE WE HAVE ONE FROM THE CITY OF GALVESTON.
[00:05:01]
AND, UH, OH, WAIT.WANTS A PICTURE? OH, I'M SORRY.
MY NAME IS BRIE LITTLE AND I'M THE DISTRICT DIRECTOR OVER GALVESTON COUNTY FOR STATE SENATOR MAYS MIDDLETON.
UM, AND UNFORTUNATELY HE WAS NOT ABLE TO BE HERE THIS MORNING.
UM, BUT I DO HAVE A RESOLUTION FROM THE SENATE.
THIS IS SENATE RESOLUTION NUMBER 161, WHEREAS THE PORT OF GALVESTON IS CELEBRATING ITS 200TH ANNIVERSARY WITH A SERIES OF EVENTS IN 2025.
AND WHEREAS THE PORT WAS OFFICIALLY FOUNDED ON OCTOBER 17TH, 1825, WHEN STEPHEN F. AUSTIN URGED THE MEXICAN GOVERNMENT TO DESIGNATE IT AS A PROVISIONAL CUSTOMS ENTRY POINT.
IN 1836, THE PORT PLAYED A VITAL ROLE IN THE TEXAS REVOLUTION AND THE BATTLE OF SAN JACINTO.
AND AFTER TEXAS WON ITS INDEPENDENCE, IT BECAME A CATALYST IN THE INCORPORATION OF THE CITY OF GALVESTON IN 1839, THE PORT WOULD SERVE AS A POWERFUL ECONOMIC ENGINE FOR GALVESTON.
AND THE PRIMARY FACTOR IN ITS EMERGENCE AS ONE OF THE LARGEST CITIES IN TEXAS IN 1940, A PUBLIC VOTE LED TO THE PORT BECOMING A SELF-SUSTAINING CITY ENTITY.
AND WHEREAS TODAY, THE A HUNDRED AND EIGHT EIGHT HUNDRED FORTY ACRE PORT OF GALVESTON IS THE ONLY CRUISE PORT IN THE STATE AND THE FOURTH MOST POPULAR CRUISE PORT IN THE NATION.
ITS FEATURES, IT FEATURES THREE TERMINALS FROM WHICH SHIPS OPERATE BY
AND THIS YEAR, NEARLY 2 MILLION PASSENGERS BOARDED CRUISES IN GALVESTON.
THE CRUISE INDUSTRY ACCOUNTS FOR 60% OF THE PORT'S REVENUE AND ITS EXPANSION PROJECT CURRENTLY UNDERWAY AT THE WESTPORT CARGO COMPLEX.
IN ADDITION, OFFICIALS RECENTLY BROKE GROUND ON A 156 MILLION PROJECT TO CONSTRUCT A FOURTH CRUISE TERMINAL ADDING TO THE PORT STABLE OF CRUISE PROVIDERS.
AND WHEREAS THE PORT OF GALVESTON HAS LONG BEEN A RESOURCE OF TREMENDOUS ECONOMIC, COMMERCIAL, AND RECREATIONAL SIGNIFICANCE OF THE, OF GALVESTON, CELEBRATING ITS IMPORTANT MILESTONE IN THE RICH HISTORY OF THE PORT.
NOW THEREFORE BE A RESOLVE THAT THE SENATE OF THE STATE OF TEXAS 89TH LEGISLATOR HEREBY COMMEMORATE THE 200TH ANNIVERSARY OF THE PORT OF GALVESTON AND PAY TRIBUTE TO THE MOMENTOUS ROLE THAT THE PORT HAS PLAYED IN THE STORY OF TEXAS SIGNED LIEUTENANT GOVERNOR DEAN PATRICK PATSY SPA, THE SECRETARY OF THE SENATE, MAYS MIDDLETON AND BRANDON CREIGHTON.
MY NAME IS CINDY BUTCHER AND I SERVE AS DISTRICT DIRECTOR FOR STATE REPRESENTATIVE DR.
AND HE IS NOT ABLE TO BE HERE TODAY, BUT HE SENDS HIS HARDY CONGRATULATIONS AND HIS BEST WISHES AND JUST WANTED TO KNOW WHAT A FANTASTIC CELEBRATION YOU HAD THE OTHER EVENING THAT HE WAS, UM, ABLE TO ATTEND.
AND SO HE HAS A RESOLUTION FOR YOU THIS MORNING, UM, THAT READS, WHEREAS THE PORT OF GALVESTON IS HOSTING ITS 200TH ANNIVERSARY GALA AT THE GALVESTON ISLAND CONVENTION CENTER ON OCTOBER THE 18TH, 2025.
AND WHEREAS THE PORT WAS OFFICIALLY FOUNDED ON OCTOBER 17TH, 1825, WHEN STEPHEN F. AUSTIN URGED THE MEXICAN GOVERNMENT TO DESIGNATE AS A PROVISIONAL CUSTOMS ENTRY POINT.
IN 1836, THE PORT PLAYED A VITAL ROLE IN THE TEXAS REVOLUTION AND THE BATTLE OF SAN JACINTO.
AND AFTER TEXAS WON ITS INDEPENDENCE, IT BECAME A CATALYST IN THE INCORPORATION OF THE CITY OF GALVESTON IN 1839, THE COURT WOULD SERVE AS A POWERFUL ECONOMIC ENGINE FOR GALVESTON.
AND THE PRIMARY FACTOR IN ITS EMERGENCE AS ONE OF THE LARGEST CITIES IN TEXAS IN 1940, A PUBLIC VOTE LED FOR THE PORT TO BECOME A SELF-SUSTAINING CITY ENTITY.
WHEREAS FOR TWO CENTURIES, SUPPORT OF GALVESTON HAS BEEN A CORNERSTONE OF MARITIME TRADE AND TRANSPORT FOR TEXAS.
AND IT IS A PRIVILEGE TO JOIN IN CELEBRATING ITS PROUD ROLE IN HELPING SHAPE THE GROWTH AND ECONOMIC PROSPERITY THAT OUR STATE ENJOYS TODAY.
NOW THEREFORE BE IT RESOLVED THAT THE PORT OF GALVESTON BE RECOGNIZED ON THE OCCASION OF ITS 200TH ANNIVERSARY, AND THAT TRIBUTE BE PAID TO THE PORT'S RICH HISTORY AND ITS ENDURING IMPORTANCE TO THE LOAN STAR STATE.
READY TO MOVE ON WITH THE CITIES, CITY OF GALVESTON RECOGNITION.
BEFORE I READ THIS, I WANT TO THANK, UH, ON BEHALF OF THE CITY ROGER STAFF, UH, THE TRUSTEES THAT, UH, WERE INVOLVED IN, AND THE STAFF HERE, KATHY THOMAS, WHO PUT OUT A UNBELIEVABLE EFFORT TO MAKE SUCH A WONDERFUL
[00:10:01]
RECOGNITION, UH, ON OCTOBER 17TH AND 18TH, HONORING THE 200TH ANNIVERSARY FOR THE COURT.WELL DONE, UH, RECEIVED UNBELIEVABLE NUMBER OF COMPLIMENTS CONCERNING THE ACTIVITIES.
AND THANK YOU EVERYONE FOR DOING THAT.
IT IS NOW MY HONOR TO READ WHEREAS THE PORT OF GALVESTON HAS SERVED AS A GLOBAL GATEWAY FOR TWO CENTURIES, SHAPING THE HISTORY, ECONOMY AND CULTURE OF THE CITY OF GALVESTON, THE STATE OF TEXAS, AND THE NATION.
IT STANDS AS A TESTAMENT TO THE INNOVATION, RESILIENCE, AND MARITIME SPIRIT THAT DEFINE OUR ISLAND COMMUNITY.
AND WHEREAS ON OCTOBER 17TH, 1825, THE CONGRESS OF MEXICO OF OFFICIALLY ESTABLISHED GALVESTON HARBOR AS A PORT OF ENTRY AND CUSTOM STATION WHEN THE REGION WAS PART OF MEXICO.
THIS HISTORIC ACT MARKED THE BEGINNING OF GALVESTON'S RISE AS A LEADING CENTER OF TRADE AND COMMERCE.
AND WHEREAS FROM ITS EARLY DAYS AS A THRIVING WATERFRONT COMMUNITY TO BECOME A MODERN HUB OF SHIPPING AND CRUISING, THE PORT OF GALVESTON HAS CONTINUED TO GROW AND ADAPT ITS SUCCESS, HAS FOSTERED JOBS, STRENGTHENED INDUSTRIES, AND EXPANDED ECONOMIC OPPORTUNITIES THROUGHOUT THE REGION.
AND WHEREAS TODAY, THE 840 ACRE PORT OF GALVESTON PROUDLY STANDS AS THE ONLY CRUISE PORT IN TEXAS AND THE FOURTH MOST POPULAR IN THE UNITED STATES.
THROUGH VISION, LEADERSHIP, AND INVESTMENT, THE PORT CONTINUES TO DRIVE PROGRESS WHILE HONORING ITS REMARKABLE 200 YEAR LEGACY.
THEREFORE, WE, THE MAYOR AND THE CITY COUNCIL OF GALVESTON DO HEREBY PROCLAIM OCTOBER 17TH, 2025 IS PORT OF GALVESTON BY CENTENNIAL DAY.
HEY, NOW CAN WE TAKE A QUICK PICTURE SURE.
AND Y'ALL STAND THERE, AND THEN I'M GONNA GET THE, OOPS.
NO, WAIT, I NEED TO, IT'S ALREADY, YES.
WANT TO US TO BE MORE? NO, IT'S REALLY, IT'S PERFECT.
IF WE MOVE ON THE GENERAL BUSINESS, UH, CAN WE HAVE AN APPROVAL OF THE FINANCING MEETING MINUTES FROM THE LAST MEETING? JUST, SORRY, I WAS WRITING
[C.1 Approval of the Finance Committee Minutes]
VOTE APPROVAL OF THE MINUTES FROM THE LAST MEETING.ALL THOSE IN FAVOR? IT'S UNANIMOUS UNANIM.
[C.2 Public Comments]
ALL RIGHT.AND WE DO HAVE A PUBLIC COMMENT.
OUR TIMEKEEPER, TONY IS NOT HERE TODAY, SO I
[00:15:01]
DON'T KNOW IF JIM'S ABLE TO DO THAT OR NOT, BUT, UH, SO THERE'S THREE MINUTES.I'M SURE CHARLOTTE'S AWARE OF THAT.
I STOOD NOTE JIM WAS, UH, CHARLOTTE WANTED TO COME UP AND SAY SOME THINGS.
SO FIRST, CONGRATULATIONS ON YOUR 200TH YEAR.
IT IS QUITE AN ACHIEVEMENT AND I HOPE YOU REALIZE THAT MY COMMENTS TODAY ARE IN THE SPIRIT OF GETTING YOU 200 MORE.
UM, THE FIRST THING I WANTED TO TALK ABOUT WAS, I KNOW YOU PROBABLY REALIZED THAT YOUR WEBSITE HAS BEEN CRASHED AND THAT YOU CAN NO LONGER GET TO CERTAIN ITEMS ON THE WEBSITE.
AND WHAT HAPPENS IS WHEN YOU GO TO CHAT, GPT OR SOME OTHER THING TO PULL INFORMATION IN, IT GIVES YOU ERRORS AND SAYS, WE CAN'T PULL THAT DATA.
SO WHETHER IT'S PARKING FEES OR TARIFFS OR ANYTHING ELSE, YOU, YOU CAN'T GET IT.
AND IF YOU GO TO THE SECTION, IT GIVES YOU A 4 0 4 ERROR.
AND I'M HOPING YOU GET SOMEONE TO FIX THAT.
EVEN THE TWO YEARS YOU PUT BACK IN A, A LARGE SUM, UH, A GROUP OF THINGS, THEY'RE NOT ALL THERE.
SO YOU'RE MISSING JANUARY OF 2025, WHICH IS FOR THE END OF DEC UH, DECEMBER, 2024.
YOU'RE MISSING FEBRUARY SEVERAL.
YOU GO IN AND YOU SEE THE AGENDA, BUT THERE'S NO PACKET INFO.
THE SECOND THING I WANTED TO TALK ABOUT IS PARKING AND PUBLISHING THE PARKING TARIFF.
SO WHEN I GO AND I COMPARE DIFFERENT PORTS, YOU USED TO BE THE LOWEST IN PARKING, $10, AND THAT INCLUDED A FEE TO THE STATE.
YOU'RE NOW UP TO THE HIGHEST, YOU'RE OVER 30 IN ONE OF YOUR PARKING GARAGES OVER $30.
AND WHEN YOU COMPARE IT TO THE OTHER PORCH, THAT'S THAT'S VERY HIGH.
IS THAT THREE MINUTES? NO, THAT'S NOT, THAT'S NOT, YOU'RE GOOD.
AND I'D LIKE TO BE ABLE TO USE ONE OF THEIS THAT PULL IT IN AND SAVES YOU A LOT OF RESEARCH WORK.
THE THIRD THING I WANTED TO TALK WAS JUST HISTORY.
UH, I'M GLAD PEOPLE ARE PUTTING OUT THE, WERE THE FOURTH US CRUISE PORT IN THE US BUT WE'VE BEEN THAT SINCE 2012.
AND IMMEDIATELY AFTER GETTING CARNIVAL, UH, PORT DIRECTOR AT THE TIME GOT RCL.
AND I WOULD LIKE FOR MAKE SURE PEOPLE REALIZE THAT, AND THAT WE'VE BEEN FORTH FOR A LONG TIME.
HOPEFULLY WE'LL EVENTUALLY GET TO THREE.
DOESN'T LOOK LIKE IT BECAUSE CRUISE IS SLOWING DOWN.
AS YOU KNOW, AS YOU SEE YOUR PORT DIRECTOR'S REPORT, YOU CAN SEE CRUISE ISN'T GOING NEGATIVE YET, BUT IT SLOWED DOWN TO THREE POINT, I THINK IT WAS 3.8% IN YOUR BOOK.
AND IN 2026, IT'S SUPPOSED TO ONLY HAVE A MILLION EXTRA, AND YOU'RE ONLY GONNA GET 4% OF THAT.
SO AS YOU'RE STARTING TO TALK ABOUT BUILDING MORE AND MORE CRUISE TERMINALS, REMEMBER ALL THAT'S COMPETITION.
THEY COMPETE AGAINST EACH OTHER, AND YOU'RE COMPETING AGAINST NEW ORLEANS AND OTHER PORTS TO GET THE BUSINESS HERE.
AND IF YOU KEEP RAISING YOUR RATES ON TARIFFS, UM, YOU KNOW, EVERY LITTLE COMPONENT MAKES A DIFFERENCE.
AND SO WHAT I'D LIKE TO ASK YOU TO DO IS TO TAKE A DEEP BREATH, CONGRATULATE YOURSELF, AND FINISH THE PROJECTS YOU HAVE, AND HOLD OFF ON THOSE THREE NEW CRUISE TERMINALS UNTIL YOU GET THE WEST END DONE.
AND YOU FIX CRUISE TERMINAL 28.
UM, I HEARD GREAT, GREAT BANDS, GREAT EVERYTHING.
OKAY, I THINK THAT WAS THE ONLY PUBLIC COMMENT WE HAD.
[D.1 CFO REPORT/CONSENT AGENDA]
HAVE BUSINESS ITEMS, CFO REPORT, MARK.THE MONTH OF SEPTEMBER, THE MONTH OF SEPTEMBER HAD 5.8 MILLION IN MAY.
NOW LET ME, LET ME KIND OF EXPLAIN WHAT'S GOING ON HERE.
I DON'T RECALL IF ANY OF THE CURRENT BOARD MEMBERS WERE HERE WHEN, UM, WE HAD TO MAKE, UH, AN ADJUSTMENT TO OUR IKE RECEIVABLE A FEW YEARS AGO.
WE TOOK ON A LIABILITY AND WE WERE APPROVED FOR AN ALTERNATIVE PROJECT.
THAT ALTERNATIVE PROJECT WAS A SLIP FILL AND SLIP CLOSURE IN FILL.
WELL, FEMA IS STARTING TO APPROVE SOME OF THAT WORK BEING COMPLETED.
AND NOW WE HAVE TO RECOGNIZE THE, THE,
[00:20:01]
UM, RECEIPT OF THOSE MONIES.WELL, NOT REALLY MONIES, IT'S THE NETTING IT AGAINST OUR RECEIVABLE, BUT IT COME RUNS THROUGH THE BALANCE SHEET, THUS GIVING US AN INCREASE IN REVENUES.
OVERALL, A NET INCOME, UH, THAT WAS $3.9 MILLION FOR THE MONEY OF, UH, SEPTEMBER.
YOU'LL SEE ANOTHER IN, YOU'LL SEE THIS AGAIN IN OCTOBER AND PROBABLY AGAIN IN NOVEMBER.
AND WE SHOULD BE GETTING CLOSE AT THAT POINT.
I SHOULD BE GETTING CLOSE TO WHAT WE'RE GOING TO GET RELATED TO THE SLIP BILL.
HOPEFULLY IT WILL BE SETTLED BY THE END OF THE YEAR.
WE ALSO HAVE T UH, TDOT THAT TDOT IS NOT THE FAST PAYING ENTITY.
WE HAVE BUDGETED FOR TDOT MONIES.
WE HAVE SPENT TDOT OR MONIES ON TDOT PROJECTS, AND TDOT WILL PAY US.
IT JUST TAKES A LITTLE BIT OF TIME TO GO THROUGH THE, THROUGH THE APPROVAL PROCESS.
WHEN WE LOOK AT 5.8 AND NET INCOME, OUR, UM, REVENUES ARE PRETTY MUCH RIGHT ON BUDGET.
OUR OPERATING THESE A HUNDRED THOUSAND OVER BUDGET, OUR OPERATING EXPENSES WILL RUN ABOUT A HUNDRED THOUSAND UNDER BUDGET.
SO FROM THAT STANDPOINT, WE'RE RUNNING VERY, VERY CLOSE TO WHAT WE HAD BUDGETED.
AND THEN TO, UNTIL YOU GET BELOW THE LINE INTO THE NON-OPERATING, THOSE TWO NON-OPERATING ITEMS, WHICH ARE, ARE DRIVING THOSE TWO ITEMS. HERE'S HOW, UH, HERE'S A, UH, JUST A FINANCIAL STATEMENT.
WE NOTICE THAT OUR CAPITAL EXPENDITURES FOR THE MONTH OF SEPTEMBER AS WE CONTINUE WORK ON THE WEST END AND, UH, UH, CRUISE TERMINAL 16, WE SPENT 13.2 MILLION.
AND THESE ARE MONTHLY FINANCIAL REVENUES.
ANYONE HAS ANY QUESTIONS? HAPPY TO JUMP INTO THAT.
UH, LAY DOCKAGE IS, IT CONTINUES TO BE DOWN WITH THE, WITH THE DOCKS OUTTA SERVICE.
WE'RE NOT, WE'RE NOT HAVING THE SPACE TO BRING IN THE LAY BUSINESS RIGHT NOW.
THAT ALSO FLOWS THROUGH THE SECURITY COST, RECOVERY AS LEGO'S, DOWNSIDE AS SECURITY, COST RECOVERY, OUR FINANCIAL EXPENSES TO MONTH, DATE OF MONTH, UH, THE NON-OPERATING EXPENSES, THAT'S, UH, NET OF REVENUES.
AND THAT IS, UM, REFLECTIVE OF THE EM AND FEMA, UH, DOLLARS THAT WE HAD JUST TALKED ABOUT A FEW MINUTES AGO.
GENERALLY, WE'RE RUNNING UNDER BUDGET, UH, 3.2% ON OUR TOTAL OPERATING EXPENSES.
MOVING INTO YEAR TO DATE, YEAR TO DATE, $42.2 MILLION.
AND YEAR TO DATE NET INCOME, REMEMBER THAT HAS, UH, THE TIMING OF THE TECH STOP FUNDS AND THAT INCREASES TO $4 MILLION.
AND THEN THE 3.9 MILLION THAT IS OFFSET, UH, WHERE WE RECEIVED MONEY FROM, UH, TECH STOCK, EXCUSE ME, T AND FEE, UM, OPERATING REVENUE FOR THE YEAR IS RUNNING ABOUT 900,000 OVER BUDGET.
OUR EXPENSES ARE RUNNING 1.9 MILLION UNDER BUDGET.
WE'RE RUNNING UNDER, WE'RE RUNNING UNDER BUDGET.
WE'RE RUNNING UNDER BUDGET BECAUSE PARTIALLY, WE HAVEN'T GOT THE MONEY IN FROM TDOT YET.
THE ACTUAL CASH, UH, IT'S COMING.
AGAIN, THEIR TDOT IS NOT, UH, IT TAKES A WHILE TO GO THROUGH THEIR, THEIR PROCESS.
AND HERE'S THE FINANCIAL SUMMARY.
YEAR TO DATE, YOU'LL NOTICE THAT OUR NET INCOME, UH, AND LOSS, OUR NET OPERATING INCOME AFTER OPERATIONS,
[00:25:01]
WE'RE RUNNING 12.3% ABOVE, ABOVE BUDGET, UM, AT 21 MILLION VERSUS 19.5 MILLION FINANCIAL, FINANCIAL REVENUES TO DATE.THE YEAR TO DATE REVENUES HERE, YOU CAN SEE HOW THAT'S PROPORTIONED ARE PASSENGER REVENUE AND PARKING REVENUE, UH, RELATED TO CRUISE IS RUNNING RIGHT ABOUT 47%.
THAT DOESN'T INCLUDE THE DOCKAGE.
UH, THERE'S A PORTION OF DOCKAGE THAT GOES INTO THERE.
AND, UH, THEN ALSO, SO THAT'S RELATED.
AND THEN GROUND TRANSPORTATION'S ALSO RELATED TO CREWS.
OUR, UM, NON-OPERATING INCOME IS 29%.
AND, UM, OUR REAL ESTATE KEEP IN MIND TOO THAT OUR IN, IN THIS CATEGORY, REAL ESTATE, THERE'S ABOUT $4 MILLION IN THERE THAT IS RELATED TO THE GROUND LEASE AT THE, AT, UH, HERE AT TERMINAL 10.
AND THAT'S, THAT ONE'S A, THAT ONE, THAT TERM, THAT TERMINAL IS DIFFERENT FROM THE REST.
IT IS, UH, WE DID A GROUND LEASE ON THAT AND ROYAL TERMINAL, UH, YEAR TO DATE REVENUES, TOTAL OPERATING EXPENSES WE'RE RUNNING FROM EXPENSES FROM OPERATIONS ARE RUNNING JUST UNDER 4%, 3.7% BELOW OUR, OUR BUDGET.
AND THEN THE NON-OPERATING, THE EXPENSES, OF COURSE, THAT'S, THAT'S COMING INTO PLAY WITH THE, UH, EM, WITH EM, FEMA AND TAX STOCK.
THERE'S A LOT OF OUR, UH, CURRENT EXPENSES SHOWING THAT THE SPLIT, YOU WILL BE SEEING THIS AGAIN WHEN WE START TALKING ABOUT THE BUDGET.
SO YOU, UH, THIS IS YEAR TO DATE.
AND THEN HERE'S OUR PRODUCT LINE SUMMARY.
UH, PAY ATTENTION TO THE NET OPERATING INCOME BEFORE ALLOCATION AND DEPRECIATION.
YOU CAN SEE WHAT WE'RE ACTUALLY DOING ON THE VARIOUS, WHAT THE, THE VARIOUS LINES ARE, THE VARIOUS LINES OF BUSINESS ARE DOING BEFORE WE APPLY THE, UH, DEPRECIATION AND ALLOCATE OVERHEADS.
YEAH, IT LOOKS LIKE MARK ON THAT, I KNOW YOU, YOU HAD DONE SOME ADJUSTMENTS BECAUSE I THINK THE PARKING WAS, IT LOOKED, I REMEMBER, COMMENTED A FEW MEETINGS AGO BETWEEN PARKING AND CREW.
IT LOOKED LIKE THE BALANCE WASN'T, IT LOOKS LIKE IT'S MORE IN LINE WITH WHAT YOU'D EXPECT AS FAR AS YES, BEING OVERALL MORE PROFITABLE.
AND WE WENT BACK AND LOOKED AT THAT AND WE FOUND A, UH, A GLITCH INTO THE, UH, IN THE LOGIC IN THE SYSTEM.
AND SO WE PRODUCE THIS REPORT.
SO WE HAVE CORRECTED THAT, AND THAT IS CORRECT HERE TODAY.
SO IT'S, IT'S NOW YOU ARE GONNA SEE DEPRECIATION INCREASE IN BOTH PARKING AND, UH, CREWS COME, UH, DECEMBER OR AS SOON AS THE, WE ARE SUBSTANTIAL, WORK THROUGH WITH THE TERMINAL AND, AND GET IT ON THE BOOKS.
OKAY, HERE TODAY, DATE, TRIBAL TRAINING AND DEVELOPMENT YEAR TO DATE, 250,000.
WE'RE RUNNING ABOUT 180,000 BELOW BUDGET.
WE'RE, EVERY TIME WE CUT THIS, IT SEEMS LIKE WE TRAVEL LESS.
ONE OF THE THINGS WE'RE FINDING IS THOUGH WE'VE BEEN VERY BUSY THIS PAST YEAR, PEOPLE HAVE, HAVE NOT DONE SOME OF THE TRAINING THEY HAD PLANNED ON, OR, OR THEY'RE DOING IT ONLINE.
SO WE'RE NOT HAVING TO TRAVEL OUR CASH POSITION.
WE HAVE, WE'RE SITTING ON $80 MILLION RIGHT NOW.
16 POINT, WELL, 17 MILLION UNRESTRICTED, LEGALLY RESTRICTED.
[00:30:02]
THAT'S DEBT THAT WE HAVE TO FINISH THE TERMINAL.THERE'S ABOUT 17 MILLION IN, UH, DEBT SERVICE RESERVE.
AND THEN ALSO WE HAVE THE, UH, ACTUAL DEBT SERVICE PAYMENT THAT WERE BILL STARTING TO BUILD BACK UP WITH THE NEXT INTEREST PAYMENT BEING IN FEBRUARY.
UH, INTERNALLY RESTRICTED OUR FUNDS THAT, THAT THE BOARD HAS, UH, WE'VE INTERNALLY RESTRICTED.
UH, WE'RE SITTING AT 9.1 MILLION ON THAT VENDOR REGISTERS FOR THE MONTH.
UH, CHECKS TO LOCAL VENDORS, 1.7 MILLION, 11% OF OUR ORDINARY OPERATING PAYMENTS, NON-OPERATING NON-LOCAL VENDORS, 14.5 MILLION AND NOT NON-OPERATING VENDORS.
WE HAVE SOME PRETTY LARGE PROJECTS GOING ON.
AND SO LOCAL AND WE HAVE LOCAL VENDORS WHO HAVE CONTRACTS ON THAT.
I WANT YOU TO NOTE THAT IT'S $54,000.
THAT'S THE LOWEST IT'S BEEN IN QUITE A WHILE.
WE DON'T HAVE ANY REALLY MAJOR, UH, PEOPLE WHO ARE BEHIND.
IT'S, UH, A BUNCH OF SMALL THINGS.
SHRIMPERS, SOME OF THE, UH, UH, JUST A WHOLE SLEW OF JUST PEOPLE WHO OWE LESS THAN $5,000.
HERE'S OUR, HERE'S A PHOTOGRAPH OF OUR LAZY FOR THE SCHEDULE OF OUR AGING AND THAT WE'RE, UH, THE 60 TO 90 DAY CATEGORY.
QUITE HONESTLY, A LOT OF OUR SHIPPING COMPANIES PAY US ABOUT 60 TO 75 DAYS.
SEND THAT LOAN TO PROCESS EVERYTHING TO EARN TO US.
ALRIGHT, HERE'S OUR CURRENT CASH POSITION.
UH, UM, I'D BE HAPPY TO GO INTO THIS AS MUCH AS Y'ALL WOULD LIKE.
WE'VE ALREADY, WE'VE ALREADY DISCUSSED IT.
I MOVE ALONG TO OUR STAFFING LEVELS.
OVERALL, WE, UH, HAD BUDGETED 144 EMPLOYEES AS OF 9 26 PAY DATE.
UH, WE WERE NOT EMPLOYEES UNDER WHAT WE HAD ORIGINALLY BUDGETED.
SOME OF THOSE POSITIONS HAVE BEEN FILLED SUBSEQUENTLY.
I BELIEVE CREWS FILLED THEIR POSITIONS IN ANTICIPATION OF MOVING PEOPLE OVER AND HAVING CT 16 UP AND RUNNING PAYMENT TO THE CITY OF GALSTON.
YEAR TO DATE, WE'RE AT 2,368,745.
GOING TO THE CITY THAT FIRST NINE MONTHS OF THE YEAR, MAYOR
READY FOR THAT ONE? THANK YOU VERY MUCH.
IT'S ACTUALLY PROBABLY GONNA BE A LITTLE HIGHER BECAUSE FROM SEPTEMBER OR FROM FROM WE'RE ABOUT TO INTRODUCE THE TWO BUSIER MONTHS, YOU'RE GONNA SEE OUR NUMBER OF CRUISE SHIPS COMING IN ALMOST DOUBLE HIGHER SEASON.
AND A NEW TERMINAL GONNA MAKE THAT, THAT'LL, THAT'LL BOOST IT.
I GO BY A HUNDRED PROMISE AND OVER THE WILL, I FULLY EXPECT THE PAYMENT.
I, I WAS WAITING FOR THAT NUMBER.
OKAY, HERE'S THE, UH, DROPAGE DISCOUNTS THAT WE'VE ISSUED OVER THE PAST MONTH.
AND THEN AS A REMINDER, 11 SIX, WE'RE GONNA HAVE A FINANCE COMMITTEE MEETING
[00:35:01]
THAT AFTERNOON.IT'S BEEN MOVED TO NINE O'CLOCK NOW.
IS IT NINE O'CLOCK? EXCUSE ME, THE BUDGET MEETING.
UM, I THOUGHT WE GOT MOVED MEETING.
IT'S, UH, I HAVE TO LOOK AT THE CALENDAR.
SORRY, IT WAS NOT, I THINK IT'S AT, UH, ONE O'CLOCK BECAUSE SOMEBODY COULDN'T BE HERE.
WELL, WE MOVED IT TO, WE GOT A SUB, I THINK WE MOVED, WE MOVED THE RETREAT TO THREE O'CLOCK.
I WAS GEAR EVERYTHING TILL THE AFTERNOON.
NOW THE BUDGETS, I MEAN, RETREATED.
OKAY, SO 11 SIX, WE'LL BE GOING OVER.
WE'LL MAKE, BE MAKING A PASS THE FIRST PASS AT THE BUDGET.
UM, YOU SHOULD BE GETTING YOUR BUDGET, UH, COPY OF IT HERE VERY SHORTLY.
GO OVER ANY QUESTIONS ON THIS PIECE.
IF NOT, FLIP OVER TO TAB NUMBER EIGHT, SEVEN STEIN, EXCUSE ME, ME.
I'LL GET IT RIGHT HERE SOONER LATER.
AND THAT'S THE, UH, OUR CURRENT MASTER PLAN OF CAPITAL PROJECTS FOR THIS MONTH.
THIS MONTH, THE CHANGES THAT WE HAD WERE JUST REFLECTIVE OF WHAT THE, THE MONIES THAT HAVE ACTUALLY BEEN SPENT AND THE ITEMS Y'ALL, THE BOARD APPROVED AT THE LAST BOARD MEETING.
WE HAVE NOT ADDED ANYTHING OR TAKING ANY PROJECTS AWAY.
WE'VE JUST UPDATED THE ACTUAL COST AND THE AMOUNT OF FUNDING AND THE FUNDING AND PAID.
DOES THE NUMBER ASSOCIATED WITH THE PASSENGER BOARDING BRIDGES, DOES THAT INCLUDE THE EXPECTED TARIFF? YEAH, THEY'S BEEN NETTED.
YEAH, WE WERE STILL OVER BUDGET QUITE A BIT ON THAT.
WHERE WERE WE OVER BUDGET ON THAT? BEGIN WITH? THAT WAS THE QUESTION.
I THINK, WELL, I THINK THE INITIAL NUMBER WAS 6 MILLION, SO YEAH, WE WOULD, IT ACTUALLY CAME IN AT SEVEN, 7.7 NOW.
A LITTLE MORE OVER ON THAT PIECE BECAUSE MAYBE A QUESTION MAYBE FOR ROGER.
I GUESS AS WE LOOK AT THE TOTAL OF IT, I KNOW WE HAD THE TOTAL OF ALL OF THE PROJECTS THAT ARE PAID FOR BY THE BOND MONEY AND THE INTEREST, WHERE DO WE STAND NOW? KIND OF, I KNOW WE HAD TO TAKE ANOTHER MILLION OUT OF THAT FOR THIS.
WHAT, WHERE DO WE MIGHT, I'LL HAVE TO TO LOOK AT JEFF ON THAT BECAUSE I'M NOT SURE THEY'RE STILL, THEY'RE STILL RUNNING FINAL CHECKLIST RIGHT NOW, STILL KIND OF RUNNING EVERYTHING THROUGH WALKTHROUGHS AND ALL THAT.
UM, MARK, DO YOU HAVE A HANDLE ON WHERE WE ARE ON THE INTEREST? JUST THE TOTAL VERSUS NO, WHAT'S KIND OF, WHAT WE THINK WE WILL HAVE LEFT, I GUESS IS 16.
YEAH, WE, WELL, THE INTEREST RIGHT NOW WE'VE EARNED APPROXIMATELY 5 MILLION ON THE BOND PROCEEDS THAT CAN'T WE, THAT, THAT WE CAN, WE CAN USE ON THE PROJECT.
WE ALSO HAVE INTEREST INCOME FROM THE, UH, DEBT RESERVE FUND THAT WILL BE USED ON DEBT SERVICE.
THAT'S, UH, A LITTLE OVER A MILLION.
SO WE WANTED THE FINAL CLOSE OUT BASICALLY.
I KNOW THAT THERE'S A PUNCH LIST THAT THEY'RE WORKING THROUGH RIGHT NOW, SO I, I DON'T, I DON'T HAVE A HANDLE ON EXACTLY WHAT IS, IS LEFT DO YOU, JEFF? I I, I'M SORRY.
WITH, WITH RESPECT TO LIKE WHAT'S IN LIKE, WORK TO BE DONE OR, OR MONEYS TO BE SPENT? MONEYS TO BE SPENT.
I MEAN, UM, RIGHT NOW, I MEAN WE'RE, WE'RE PRETTY MUCH RIGHT.
WE'RE SPENDING EVERYTHING WE'VE APPROVED.
THERE MAY BE SMALL THINGS THAT POP UP AS WE CLOSE OUT THAT WE NEED TO ADD THAT WE DON'T HAVE ROOM FOR IN THE EXISTING CONTRACTS AND THAT, BUT I, I DON'T SEE ANYTHING SUBSTANTIAL AT THIS, THIS POINT AS WE MOVE TOWARDS CLOSEOUT.
UM, BUT, BUT LIKE, LIKE YOU SAID, WE'RE MOVING THROUGH THE, UH, CLOSEOUT
[00:40:01]
PROCESS.WE'RE ALSO GETTING JULIO SYSTEMS ONLINE AND OBVIOUSLY GETTING THOSE THINGS ONLINE AS PRIORITY FOR, FOR US.
SO, SO LITTLE, LITTLE, LITTLE THINGS HERE AND THERE, BUT NOTHING, NOTHING MAJOR.
I MEAN, I, I DON'T KNOW THAT THERE'S A BIG BUS.
I DON'T KNOW IF I'M GIVING YOU THE RIGHT ANSWER, BUT I COULDN'T QUITE HEAR THE CONVERSATION.
WELL, IT WAS JUST, YEAH, I'M JUST TRYING TO GET A FEEL FOR, I KNOW WE HAD TALKED ABOUT, WE HAD THE BOND PROCEEDS PLUS THE INTEREST, AND THEN I KNOW WE HAD TAKEN SOME THINGS OUT.
AND JUST KIND OF HOW THAT WAS ALL.
BUT I MEAN, MAYBE A LITTLE MAY NOT HAVE ALL THOSE NUMBERS PULLED TOGETHER JUST YET.
YEAH, MY FIELD, JUST BASED UPON KIND OF, AND I, I HAVEN'T BEEN WATCHING THE BONDS, IS THAT WE'LL PROBABLY HAVE TO SPEND A LITTLE BIT MORE BOND MONEY BY THE END OF THE PROJECT THAN, THAN WE HAVE TO BE SPENT IN THE PROJECT.
I DON'T HAVE AN EXACT NUMBER, BUT, AND HE'S, THE NUMBER HE'S GOT DOESN'T INCLUDE THE INTERESTING, THE INTERESTING INTEREST AND THINGS ARE ON SCHEDULE RIGHT NOW, AS, AS I SAID, YEAH, WE'RE, WE'VE GOT A LOT, WE'RE DOING FINAL COMMISSIONING OF THE PS NEXT WEEK, SO YEAH.
UH, WHEN YOU LOOK AT THE CASH FLOW, KEEP IN MIND THAT WE'VE BEEN ACCOUNTING FOR ON THE FINANCIAL RECORDS, THE, UH, RETAINAGE.
AND ONCE IT'S FINISHED, WE WILL REDUCE THAT RETAINAGE ACCOUNT BY PAYING OUT CASH AND THE CASH WILL BE COMING OUT UPON PROCEEDS.
I WAS JUST, UH, SAME LINE OF QUESTIONING, BUT WHAT, UM, HOW WOULD YOU CATEGORIZE HOW WE MISSED THE COST OF THE PASSENGER BOARDING BRIDGE BY 1.7 MILLION? I DON'T THINK YOU DID MISS THAT BY 1.7, BECAUSE WHEN WE, WE BROUGHT THAT TO YOU THAT THAT $6 MILLION WAS THE INITIAL NUMBER WHEN WE TALKED ABOUT AT THE VERY BEGINNING.
SO WHEN WE FINAL, WE GOT FINAL NUMBERS FROM, UH, HANSEL PHELPS AND FROM ADEL, THAT NUMBER WAS, WAS THE NUMBER YOU APPROVED.
THE ONLY THING WE'RE REALLY ABOVE ON THAT NUMBER WAS THE, UH, TARIFFS.
'CAUSE WE APPROVED SEVEN, I WANNA SAY SEVEN FOUR.
AND SO, YOU KNOW, WHEN YOU TALK ABOUT 6 MILLION, YOU'RE TALKING ABOUT A YEAR AND A HALF AGO BEFORE WE EVEN STARTED APPROVING, YOU KNOW, A LOT OF THESE EXPENDITURES.
SO I MEAN, I I'M NOT SURE THAT THAT'S REALLY A GOOD NUMBER.
THE ONLY REASON IT SHOWS UP ON HERE IS BECAUSE THESE WERE THE ESTIMATED COSTS THAT SH THAT CAME OUT, YOU KNOW, BEFORE WE EVEN HAD, UM, THE, THE ACTUAL CONTRACTS WITH, WITH TAN PHELPS AND WITH THE DELTA.
UM, 'CAUSE THERE WAS A, THERE WAS A QUESTION, UM, A WHILE BACK WHERE WE WERE TO START WITH OUR ESTIMATES.
AND THESE WERE ALL ESTIMATES RIGHT HERE.
SO WHEN WE STARTED, WHEN WE STARTED GETTING THE, THE CONSTRUCTION CONTRACTS, GETTING ALL THOSE THINGS, YOU, YOU APPROVED 7.4 MILLION, I THINK IS WHERE IT WAS.
AND I THINK IF I HAD
BUT I THINK AT A CERTAIN POINT THERE WAS A DECISION THAT WAS MADE WHERE WE COULD HAVE GONE WITH A, UH, A LESS EXPENSIVE PASSENGER BOARDING BRIDGE OR MORE EXPENSIVE.
AND ACTUALLY AT THAT POINT, THE MORE EXPENSIVE ONES WERE CLOSER TO $10 MILLION.
AND THOSE ARE THE ONES THAT GIVE US MORE FLEXIBILITY FOR DIFFERENT VESSELS OVER TIME, RATHER THAN JUST SOLVING THE NOW ISSUES.
UM, AND SO I, I BELIEVE THAT'S WHERE THE $6 MILLION CAME FROM, WAS ACTUALLY A DIFFERENT BOARDING BRIDGE THAN WHAT WE ACTUALLY ENDED UP BUYING.
THE COST ESTIMATE FOR THE BOARDING BRIDGES WE ENDED UP BUYING, I THINK WAS CLOSER TO 10 MILLION.
BUT I CAN GO BACK AND LOOK AT MY BOARD NOTES.
WELL, I, I KNOW Y'ALL BROUGHT EVERYTHING FORWARD, ALL THE CHANGES TO THE BOARD, AND I KNOW WE'VE APPROVED THEM, BUT THIS WAS THE FIRST TIME I KIND OF WENT, WOW.
THAT WAS, THAT WAS OVER QUITE A BIT FROM THE ORIGINAL ESTIMATE.
AND THOSE WERE INTERNAL, THOSE WERE INTERNAL ESTIMATES.
I MEAN, WHEN WE DID THAT AND THAT, AND THAT'S, AND THAT'S WHAT WE WERE ASKED TO DO IS, WELL, WHERE DID WE START RIGHT BEFORE WE REALLY HAD ANY DETAILS, YOU KNOW, FULL CONSTRUCTION OR JUST, IT'S JUST TRACKING THE HISTORY AND IT'S NOT, YOU KNOW, IF TONY WAS HERE, HE COULD TALK ABOUT SCHOOL BOARD, YOU KNOW, THE SCHOOL BOARD WOULD LIKE TO BE THAT.
THEY WOULD LIKE TO BEEN A LOT CLOSER THAN THAN THAT, BUT THOSE ARE THOSE EARLY, THE EARLY NUMBERS THAT WE HAD.
BUT IT'S JUST, IT, IT'S GOOD TO TRACK THE HISTORY 'CAUSE IT KIND OF, YOU UNDERSTAND KIND OF WHAT WE WERE, WHERE WE WERE LOOKING AT.
SO THERE HAS BEEN SOME, I MEAN, YOU LOOK AT THE OTHER NUMBERS, THERE HAS BEEN ESCALATION IN THERE AS WE REFINE THE PROJECT, BUT IT'S JUST, IT'S, YOU KNOW, AND THAT'S GOOD AS YOU, YOU KNOW, KIND OF STEP BACK AND LOOK AT THE PROJECT WHEN YOU'RE DONE IS KIND OF, YOU HAVE THAT HISTORY SO YOU KIND OF UNDERSTAND ARE THERE ANY ADJUSTMENTS WE NEED TO MAKE IN, YOU KNOW, HOW WE DO THINGS GOING FORWARD.
BUT IT'S GOOD TO CAPTURE THAT HISTORY SO WE KNOW, KIND OF KNOW WHERE WE STARTED AND WHERE, WHERE WE ENDED UP.
WHAT, WHAT THE BOARD HAS APPROVED IS YOU BROUGHT US THE, THE, THE BETTER THE, THE FINAL NUMBERS THERE THAT WE APPROVED.
AND THAT'S, I DON'T KNOW IF THEY WERE BETTER, BETTER.
THEY WERE, THEY WERE MORE REFINED NUMBERS.
THEY WERE BIGGER NUMBERS, BUT, BUT THEY WERE REAL NUMBERS.
THE OTHER, THE OTHER THING WAS AN INTERNAL ESTIMATES.
[00:45:01]
WHERE, YOU KNOW, WE STARTED, WE CA WE CAPTURED THOSE.AND IT'S JUST, JUST, I THINK YOU WERE THE ONE THAT ASKED US TO.
JUST SO WE HAVE THE HISTORY SO WE CAN KIND OF UNDERSTAND THAT AGAIN.
SO YOU CAN LEARN, YOU KNOW, IT'S REALLY FOR, FOR LEARNING, LEARNING ON THE PROCESSES AS WE GO.
AND IT WASN'T REALLY, TO BE HONEST WITH YOU, IT WASN'T REALLY THE NUMBERS THAT WE USED TO, TO DO THE BOND OFFERING OFF OF.
ANY OTHER QUESTIONS ON, UH, ITEMS ONE THROUGH NINE? AND I THINK, YOU KNOW, AS WE GET TO YOUR POINT, I THINK AS WE, YOU KNOW, HERE IN THE NEXT, YOU KNOW, MONTH PROBABLY WILL BE FINALIZING EVERYTHING AND DOING THE WALKTHROUGHS AND, AND PUNCH LISTS AND ALL THOSE KIND OF THINGS.
BUT I MEAN, WE'RE WELL WITHIN THE BOND PROCEEDS, UM, 'CAUSE YOU KNOW, WE DID ADD THINGS LIKE THE PASSENGER, UH, WALKWAY FROM THE, FROM THE PARKING LOT TO THE, TO THE, UH, EAST WEST SIDE OF THE PROPERTY.
AND, AND I THINK ONE OF THE THINGS THAT WAS REALLY KIND OF WHAT HAPPENED IS, IS WE ALL TALKED ABOUT THAT AT THE BEGINNING, IT, BUT THEN WHEN WE FINALLY DID AND APPROVED THE CONSTRUCTION CONTRACT, WE DIDN'T HAVE THOSE IN THERE.
SO THEN WHEN IT APPEARED WE WERE GONNA HAVE SOME GOOD, UH, UM, INTEREST EARNINGS, THOSE KIND OF THINGS, THEN WE CAME BACK TO YOU GUYS AND WE RECRUITED THOSE ADDITIONAL ITEMS. SO IT ALL ADDS UP THAT WE, WE'VE ADDED SOME THINGS HERE.
WE HAD TO DO, UM, INSULATING THE FLOORS AND THINGS LIKE THAT, IF YOU REMEMBER.
AND, AND THEN WE HAD SOME ISSUES WITH, WITH THE FEMA REGULATIONS ON, UH, YOU KNOW, THE, THE FLOOD PROTECTION, WHICH WE HAD TO DO OTHER THINGS.
BUT, YOU KNOW, THE GOOD THING IS I THINK THAT, UM, WE'RE WELL WITHIN WHAT WE HAVE BORROWED.
I THINK THAT IF I REMEMBER CORRECTLY JUST RECENTLY, WE'RE PROBABLY SOMEWHERE AROUND A MILLION DOLLARS UNDER, UNDER, INCLUDING THE USE OF THOSE, OF THOSE INTEREST COSTS.
AND AS MARK POINTED OUT, YOU KNOW, WE'RE ALSO ACCUMULATING INTEREST UP THERE ON, ON THE, THE DEBT SERVICE PROCEEDS, WHICH WILL, WILL SAVE US ABOUT, I THINK IT WAS A MILLION WE LOOKED AT THIS LAST WEEK OR TWO WEEKS AGO.
IT'S TOOK ABOUT A MILLION DOLLARS SITTING UP THERE THAT WILL BE USED TO PAY THAT SERVICE.
SO WE WILL HAVE THAT REOCCURRING EVERY YEAR AS THAT $17 MILLION EARN INTEREST UP THERE FOR THAT SERVICE, FOR OUR DEATH SERVICE, UM, RESERVES.
SO, SO WE'LL BE, IT'LL HELP OUR OPERATIONS BECAUSE WE'LL HAVE THAT INTEREST EARNED UP THERE TO PAY DEATH SERVICE, WHICH IS ABOUT ALMOST 19 MILLION A YEAR RIGHT NOW.
DO WE HAVE ANY MORE QUESTIONS OF ITEMS EIGHT THROUGH I THANK YOU, MARK.
COMMEND, IS THAT, ARE WE, YEAH.
CAN I GET A MOTION TO RECOMMEND APPROVAL OF THE CFO'S REPORT? YES.
[D.2 Discuss And Consider Portfolio Performance Analysis Report, Summary Of Investment Performance Report And Investment Detail Of The Galveston Wharves Pension Plan Period Ending September 30, 2025, And Discuss And Consider Percentage Changes In The Fund Mix That May Be Necessary To Increase Investment Results]
D TWO IS THE NEXT ITEM.DISCUSS, CONSIDER THE PORTFOLIO PERFORMANCE ANALYSIS REPORT, SUMMARY OF INVESTMENT PERFORMANCE REPORTS AND INVESTMENT DETAILS OF GAPS.
MOORE PENSION PLAN FOR THE PERIOD ENDING SEPTEMBER 30TH, 2025, AND DISCUSS AND CONSIDER PERCENTAGE CHANGES IN THE FUND MIX THAT MAY BE NECESSARY TO INCREASE THE INVESTMENT RESULTS.
NOW THE BOARD PREVIOUSLY HAD ASKED TO HAVE REPRESENTATIVE FROST AT THE JULY MEETING AND THE JANUARY MEETING.
AND IN BETWEEN THE TWO, IN THE TWO QUARTERS IN BETWEEN, WE JUST PRESENT, WE JUST INCLUDE THE REPORT.
NOW THE REPORT IS INCLUDED UNDER, UH, BUSINESS ITEM TWO.
I WOULD LIKE TO POINT OUT, I'M GONNA POINT OUT ONE THING WITHOUT, I DON'T, AND, AND WITHOUT GETTING IN A LOT OF DETAIL, IF YOU'LL GO TO PAGE ONE, YOU'LL NOTICE THAT OUR, OUR TOTAL PORTFOLIO COST IS 12 MILLION.
THE MARKET VALUE OF THAT COST AS OF THE END OF SEPTEMBER, IT'S SUBJECT TO CHANGE.
OF COURSE, EVERY MONTH WAS 16.7 MILLION OF THAT.
AND WE'VE BEEN, WE'VE HAD 262,000 OF INTEREST AND DIVIDENDS PAID TO US WITH THE MARKET APPRECIATION.
[00:50:01]
FIVE, IF I READ THIS CORRECTLY, THE FUND'S DONE ABOUT $5 MILLION THIS YEAR INCREASE.THAT ALSO INCLUDES, UH, CONTRIBUTIONS AND PAYOUTS.
SO WE STILL GOT A COUPLE OF MONTHS TO GO AND GOD KNOWS WHAT THE MARKET'S GONNA DO BETWEEN NOW AND THEN.
SO SITTING GOOD NOW, BUT SO FAR GOOD RIGHT NOW.
MARCUS, MARCUS MADE US LOOK REALLY SMART THIS YEAR.
IF I READ IT RIGHT, MR. CHAIRMAN, UH, YEAR DATE 12.97 IN OUR ACTU SEVEN.
YEAH, THOSE WERE BEATEN BY ALMOST SIX.
SO WE'RE RECOVERING WHAT WE LOST THE LAST, A FEW YEARS AGO.
BUT EVEN OVER 10 YEARS, IT'S AT 10.61 AND WE'LL HAVE A, UH, THE YEAR END REPORT IN JANUARY, AND THEN IN EITHER FEBRUARY OR MARCH WE'LL HAVE NYHART COME IN WITH THE ACT, WITH THE ACTUAL ACTUARY REPORT, UH, ON, ON THIS PENSION PLAN.
AND THE MARKET WILL HAVE A VERY POSITIVE REPORT FROM THE ACTUARIES.
AND WE'RE, WE'RE STILL GOOD WITH THE SCHEDULING WE HAVE NOW PLUS A YEAR I THINK.
SO IF, IF, IF ANY, ANY TIME Y'ALL WANT, IF SOMEONE WANTS TO BRING THEM IN, JUST LET US KNOW IN ADVANCE.
AND HE'S MORE THAN, AND HE'S MORE THAN HAPPY TO COME DOWN.
UM, I MAKE A MOTION THAT WE, UM, APPROVE THIS, UH, THESE REPORTS FROM PROSPECT.
I'LL SECOND ALL THOSE IN FAVOR? AYE.
[D.3 Discuss And Consider the Write-off of Assets and/or Receivables with Individual Net Book Value in excess of $5,000.00=]
YOU WANNA DO THE LAST POINT REAL QUICK? WE HAVE TO GO BACK FINISH.SO EACH YEAR, LET'S SEE, SHOULD I READ THE, UH, ACTUAL AGENDA ITEM? YEAH.
THE DOES PENSION CONSIDER A WRITE OFF, WRITE OFF OF ASSETS, A RECEIVABLES WITH INDIVIDUAL NET BOOK VALUE IN EXCESS OF 5,000 BUCKS? CORRECT.
ONCE A YEAR ANNUALLY, WE CONDUCT, UH, REVIEWS OF OUR FIXED ASSETS.
WE DON'T DO ALL THE FIXED ASSETS EVERY YEAR.
EVERY OTHER YEAR WE, WE, WE TRY TO DO HALF THE GOVERNMENTAL OR CLOSE TO IT, HALF THE, UH, UH, ASSETS THAT ARE, UH, GRANT RELATED.
AND THE OTHER YEARS WE DO NON-GRANT RELATED.
UM, FIXED ASSETS THIS YEAR WAS A GRANT RELATED YEAR.
UM, AS WE WENT THROUGH THERE, WE IDENTIFIED THOSE ITEMS WITH THE NETWORK VALUE AND EXCESS OF $5,000.
AND WE'RE BRINGING IT TO THE BOARD TO GET YOUR BLESSING TO, UH, PROCEED WITH WRITING IT OFF, WRITING THE ITEMS OFF AND DISPOSING AND GOING THROUGH THE DISPOSAL PROCESS AS IF THERE'S ANYTHING THERE TO DISPOSE.
UM, THOSE ITEMS ARE SOME PERIMETER FENCING THAT IS NO LONGER THERE, UH, IN LIGHTING DOWN AT THE EAST END THAT HAS, THAT CURRENTLY HAS A NET BOOK VALUE OF $135,000.
ORIGINAL COST WAS 951,000, ACCUMULATED DEPRECIATION 816, AND IT WAS ACQUIRED IN 2008.
SO IT'S BEEN, THOSE FENCES HAVE BEEN PATCHED AND WHATNOT.
AND THEN WHEN WE GOT OUT THERE AND DID WORK AT THE WEST OF THE EAST END, THE, THOSE ARE NO LONGER THERE.
UH, ON PORT SECURITY GRANT, 10 20 10, WE HAD
[00:55:01]
SOME, UH, VARIOUS, UH, COMMUNICATION AND SOFTWARE CUSTOMIZATIONS DONE THAT WERE ACQUIRED IN 2014.THEY ARE NOW OBSOLETE AND NO LONGER IN SERVICE.
THAT'S A WRITE OFF OF $125,000 PLUS 1 25 6 78 25.
THEN WE ALSO HAVE ADDITIONAL FROM, UH, PORT SECURITY GRANT IN 2014, SECURITY SYSTEM ENHANCEMENTS, VIDEO CAMERAS, TWEAKED WHEELERS, AND ACCESS, UH, EQUIPMENT, SO ON AND SO FORTH.
UM, THAT WAS ACQUIRED IN 2016.
THAT'S, WE'RE WRITING OFF $28,554 THERE.
PASSENGER LOADING RAMP AT CT ONE? NO, LIKE CT? YEAH, IT'S, IT, IT WAS THERE ORIGINALLY, BUT IT'S BEEN AT THE CT 28 FOR THE LAST EIGHT YEARS.
IT'S BEEN, IT IS THE ONE THAT WAS SITTING THERE, WE KEPT SAYING WE'RE GONNA KEEP IT AS A SPARE.
AND THEN IT WAS, WE TRIED TO SELL IT, WE COULDN'T SELL IT, AND WE'RE FINALLY ZEROING IT OUT.
THERE WAS STILL $24,000 ON THE BOOKS ON THAT.
THAT IS, IT IS NO LONGER ON THE PORT PROPERTY.
IS THAT, IS THAT THE WHOLE RAMP FOR 111,000 BUCKS? THAT, THAT THERE'S, THERE WAS A COUPLE PIECES.
THE, THE, THERE'S THE PASSENGER BOARDING BRIDGE WAS THAT, THAT ONE MAY NOT BE THE PASSENGER BOARDING BRIDGE, BUT THERE WAS, EVEN BEFORE THAT, THERE WAS ALUMINUM RAMP STRUCTURE TO GO TO THE OH, OKAY.
BUT THAT WAS, THAT WAS ORIGINALLY PUT INTO SERVICE IN 2010 AND, UH, IT'S NO LONGER IN SERVICE.
UM, THERE WAS SOME ENGINEERING WORK RELATED TO HURRICANE I THAT WE'VE BEEN CARRYING IN CONSTRUCTION MARKET PROGRESS WITH ANTICIPATION OF USING THAT ON PROJECTS.
WE'RE NOT DOING THOSE PROJECTS, THEREFORE WE'RE, UM, WE HAD ACTUALLY MOVED IT AND STARTED DEPRECIATING IT AND NOW WE'RE DOWN TO 19,000 THAT WE NEED TO WRITE OFF.
AND THAT WILL, THAT WILL CLEAR THAT, UH, SOME OF THAT ENGINEERING WORK WAS USED ON VARIOUS PROJECTS.
THIS IS THE REMAINING AMOUNT OF THE STUFF THAT WE'RE NOT USING THEN A CAMERA AND INSTALL, UH, L THREE APPLICATION.
WE, WE, WE'VE MET WITH IT WITH, UH, DIRECTOR OF SECURITY.
HE SAYS, NO, DON'T NOT USING IT.
IT'S PUT INTO SERVICE 2012 CONSIDERED, UH, OUT OF SERVICE AND OBSOLETE.
AND WE STILL HAD A BOOK VALUE OF 9,717.
THAT MEANS WE HAVE ASSETS, NET BOOK VALUE OF ASSETS IN EXCESS OF $5,000 EACH, EACH OF $342,631 AND 92 CENTS.
I MAKE A MOTION THAT WE, UM, APPROVE TO WRITE OFF OF ALL THESE ATTACHED ITEMS. I'LL SECOND THAT.
[B. PRESENTATIONS AND ANNOUNCEMENTS (Part 2 of 2)]
WHICH WE MISSED EARLIER.APOLOGIES TOO, TOO MANY PICTURES GOING.
I APPRECIATE Y'ALL TAKING THE TIME OUT.
UH, THANK Y'ALL FOR TAKING THE TIME.
UH, WE WON'T BE, WE WON'T BE LONG, BUT I, I THOUGHT THIS WAS A, A WORTHY CAUSE TO BE IN FRONT OF YOU THIS MORNING.
YOU KNOW, IF YOU ASK ANY POLICE OFFICER WHY THEY CHOSE TO DO THIS JOB, UH, THEY'RE PROBABLY GONNA GIVE YOU SOME ANSWER ALONG THE LINES OF, OF WANTING TO MAKE A DIFFERENCE.
AND I DON'T KNOW ANY BETTER WAY TO MAKE A DIFFERENCE IN SOMEBODY'S LIFE OTHER THAN TO SAVE
[01:00:01]
IT.AND SO IF I WAS STANDING BEFORE YOU TODAY GIVING A LIFESAVING AWARD, IT WOULD BE A VERY PROUD DAY FOR US.
BUT TODAY I'VE GOT FIVE OFFICERS WHO ARE RECEIVING LIFESAVING AWARDS FOR SAVING FOUR LIVES.
UH, SO THE FIRST ONE I WANNA READ TO YOU, UH, OFFICER HOPKINS AND OFFICER RAMIREZ, IF YOU CAN COME UP AND JOIN ME, PLEASE.
I KNOW WE'RE A LITTLE CRAMPED FOR ROOM.
ON THE MORNING OF SEPTEMBER 10TH, 2025 WHILE CONDUCTING ROUTINE MARINE PATROL TRAINING ABOARD THE POLICE VESSEL, CLAY GARRISON, OFFICER HOPKINS AND OFFICER RAMIREZ RESPONDED WITHOUT HESITATION TO AN EMERGENCY CALL INVOLVING A CAPSIZED VESSEL NEAR THE SOUTH JETTY, OPERATING IN HAZARDOUS PRE-DAWN CONDITIONS WITH LIMITED VISIBILITY, HIGH WINDS, AND ACTIVE TIDAL MOVEMENT, BOTH OFFICERS ENGAGED IN A HIGH RISK WATERBORNE RESCUE OPERATION INVOLVING THREE ADULT MALES IN IMMEDIATE DANGER.
UPON ARRIVAL, OFFICER HOPKINS TOOK A POSITION AT THE STARBOARD QUARTER AND PHYSICALLY ASSISTED IN RETRIEVING THE VICTIMS FROM THE WATER OFFICER RAMIREZ MANAGED ALL MARINE COMMUNICATIONS, DEPLOYED LIFE RING, DIRECTING THE RESCUE POSITIONING AND ASSISTED IN SAFELY BRINGING ALL THREE VICTIMS ABOARD.
THE VICTIMS WERE CLINGING TO DIFFERENT SECTIONS OF AN OVERTURNED VESSEL NEAR THE JETTY ROCKS AND WERE IMMEDIATE IN IMMEDIATE RISK OF DROWNING, HYPOTHERMIA OR INJURY FROM IMPACT ON THE ROCKS, THANKS TO THE CALM, SKILLED, AND DECISIVE ACTIONS OF ALLS HOPKINS AND RAMIREZ, ALL THREE MEN WERE SUCCESSFULLY RESCUED AND TRANSPORTED TO EMS FOR FURTHER MEDICAL CARE.
THE ACTIONS OF THESE OFFICERS WENT BEYOND THE CALL OF DUTY.
THEY TRANSITIONED IMMEDIATELY FROM TRAINING OPERATIONS TO AN ACTIVE RESCUE AND PERFORMED UNDER EXTREMELY EXTREME CONDITIONS WITH EXCEPTIONAL PROFESSIONALISM AND COURAGE.
THEIR TEAMWORK AND READINESS DIRECTLY RESULTED IN THE PRESERVATION OF HUMAN LIFE AND RECOGNITION OF THEIR OUTSTANDING PERFORMANCE AND COMMITMENT TO PUBLIC SAFETY.
THE PORT OF GALVESTON POLICE DEPARTMENT IS PROUD TO PRESENT THE LIFESAVING AWARD TO OFFICER HOPKINS AND OFFICER RAMIREZ.
CHIEF, WE HAVE ANYBODY TAKING A PHOTO? ALL RIGHT.
OFFICERS, MUNGIA, RO AND CARLSON, PLEASE STEP FORWARD.
ON THE MORNING OF SEPTEMBER 27TH, 2025, OFFICERS MONIA, QUIN, AND CARLSON RESPONDED WITHOUT HESITATION TO A MEDICAL EMERGENCY INVOLVING AN ELDERLY WOMAN WHO HAD COLLAPSED AND WAS UNRESPONSIVE NEAR THE LUGGAGE DROP OFF AREA.
AT CRUZ TERMINAL 25, THE VICTIM WAS FOUND TO BE PULSELESS AND NOT BREATHING.
UPON ARRIVAL, OFFICER CARLSON IMMEDIATELY DEPLOYED AND OPERATED AN AUTOMATED EXTERNAL DEFIBRILLATOR DELIVERING TWO SHOCKS.
WHILE COORDINATING WITH OFFICERS MUNGIA AND QUINTERO TO PERFORM CONTINUOUS CPR.
OFFICER QUINTERO HELPED SECURE THE SCENE, ROTATED IN TO PROVIDE CHEST COMPRESSIONS, AND LATER ESCORTED THE VICTIM'S HUSBAND TO THE HOSPITAL.
OFFICER MUNGIA PROVIDED CRITICAL RESUSCITATION EFFORTS AND OVERALL SCENE MANAGEMENT UNTIL EMS ARRIVED.
THANKS TO THE COORDINATED DISCIPLINE AND TECHNICALLY PROFICIENT ACTIONS OF THESE THREE OFFICERS, THE VICTIM REGAINED A PULSE BEFORE EMS TRANSPORT AND WAS LATER ADMITTED TO THE ICU AT UTMB.
SHE HAS SINCE CONTINUED TO RECOVER AND SPEAK WITH FAMILY MEMBERS.
A RECOVERY DIRECTLY CREDITED TO THE SWIFT AND LIFESAVING EFFORTS OF THE OFFICERS INVOLVED.
THE ACTIONS OF OFFICERS MIA QUINTERO AND CARLSON REFLECT THE HIGHEST STANDARDS OF PUBLIC SAFETY SERVICE.
THEIR READINESS, COMPOSURE UNDER PRESSURE AND UNWAVERING COMMITMENT TO PRESERVING LIFE WENT WELL BEYOND THE CALL OF DUTY AND RESULTED IN A SUCCESSFUL RESUSCITATION UNDER CRITICAL CONDITIONS.
IN RECOGNITION OF THEIR OUTSTANDING PERFORMANCE AND DEDICATION TO HUMAN LIFE.
THE PORT OF GALVESTON POLICE DEPARTMENT PROUDLY PRESENTS THE LIFESAVING AWARD TO OFFICERS MUG, RO AND CARLSON.
[01:05:07]
THANK YOU.THAT'S I MOVING BACK TO, UM, ITEMS HERE.
[E. COMMENTS FROM THE BOARD OF TRUSTEES]
COMMENTS FROM THE BOARD? TRUSTEES? HEARING[F. SET DATE OF NEXT MEETING, TIME, AND LOCATION]
NONE, UH, WE SET THE MEET, UH, DATE FOR THE NEXT MEETING.IS NOVEMBER THE 18TH? 18TH AT NINE.
AND WE DO HAVE THE SPECIAL BUDGET MEETING ON NOVEMBER THE SIXTH.
NOVEMBER 6TH AT NINE O'CLOCK IS RIGHT? YES.
UH, I HERE BY, I GUESS WE ARE ADJOURNED AT THIS POINT.