[A. CALL TO ORDER]
[00:00:04]
HERE, COMMITTEE MEMBER SHEILA
HERE ALSO IN ATTENDANCE IS CHAIRMAN JEFF PATTERSON, TRUSTEE ERIC, MAYOR CRAIG BROWN AND TRUSTEE.
SO WE HAVE A QUORUM AND WE'RE GOING TO HAVE THE INVOCATION TODAY.
IT'S BY BROTHER ERIC HO HODGE FIRST BAPTIST CHURCH.
LAST TIME WE'RE HERE, IT WAS FOG.
I'D LIKE TO SAY WE DID THAT FOR YOU.
LET'S PRAY TOGETHER RIGHT NOW.
OKAY, GUYS, SO Y'ALL CAN GET GOING.
FATHER, I THANK YOU FOR THE BEAUTIFUL DAY THAT YOU'VE GIVEN US.
WHAT AN AWESOME DAY, UH, TO BE ALIVE.
AND I PRAY THAT EACH OF US WILL LIVE OUR LIFE AS BEST WE CAN.
FATHER, UH, FOR YOU, I PRAY FOR, UH, MY FRIENDS TODAY, FATHER, IN THIS MEETING, AND THIS IMPORTANT WORK THAT GOES ON IN THESE WALLS, BETWEEN THESE WALLS.
AND I PRAY THAT FATHER, YOU'LL GUIDE EVERYTHING THAT GOES ON HERE TO THE SMALLEST DETAIL, UH, FOR OUR HOMES AND OUR LIVES HERE, I GALVESTON ISLAND, AND I PRAY YOU BLESS IT, FATHER, IN YOUR WORD.
FATHER, YOU TELL US SO MANY PROMISES.
ONE IS YOU HAVE A PERFECT PLAN FOR OUR LIFE AND SO MANY MORE.
BUT MOST OF ALL, YOU TELL US YOU'LL NEVER LEAVE US OR FORSAKE US.
SO FATHER, THERE IS EVER A TIME THAT WE FEEL LIKE WE'RE ALONE.
IF WE'VE DONE BUSINESS WITH YOU, UH, WE'RE NOT ALONE, AND WE'LL NEVER BE ALONE.
SO GUIDE US TO THE REST OF THIS DAY AND ALL GUIDE US IN ALL THINGS AND SHOW US YOURSELF IN JESUS' THING WE PRAY NOW.
OKAY, SO DECLARATION OF CONFLICTS OF INTEREST BY A TRUSTEE.
IS ANYONE FEEL LIKE THEY HAVE ANY CONFLICTS? NO CONFLICT.
[B. PRESENTATIONS AND ANNOUNCEMENTS]
SO WE HAVE A, A SERIES OF PRESENTATIONS TODAY, BUT THE FIRST ONE THAT I THINK IS THE MOST IMPORTANT, AND THAT'S THE EMPLOYEE SERVICE AWARDS.ROGER, ARE YOU GONNA HANDLE THAT? I GOT THAT.
UM, WE'LL START OUT WITH THE SHORTEST PERIOD OF TIME, WHICH IS FIVE YEARS, SO THAT'S PRETTY GOOD.
UM, JASON
STEPHANIE SMITH, DO WE KNOW THIS? AND, UH, JOSEPH POTO.
LET'S GET ALL FIVE TO FIVE YEARS UP HERE.
FIRST OFF, WE NEED SOMEBODY TAKE A PICTURE WHEN THEY'RE ALL DONE.
WHAT'S THAT? YOU CAN CONTINUE.
THEY'RE GONNA DO A GROUP PICTURE WHEN IT'S THEY'RE ALL DONE.
YOU GONNA DO ALL OF THEM? OKAY.
FIRST, UH, MARK MURCHISON 15 YEARS WOW.
AND VO CARDI AND WILLIAM BILL DELL FOR 20.
WE'LL MAKE SURE THESE TERMINALS KEEP GOING EVERY EVERY DAY.
CAN WE DO THIS? UH, WE CAN DO IT.
YEAH, Y'ALL CAN SCOOT ALL DOWN KIND OF CLOSER DOWN HERE, KIND OF TOGETHER LIKE WE LIKE EACH OTHER.
WE'RE AN, WE NEED, UH, TWO, TWO LINES.
OKAY, SO THE NEXT THING UNDER PRESENTATIONS WE HAVE IS, UH, BY FROST BANK.
[00:05:16]
YES.AND IF Y'ALL WANNA FOLLOW ALONG IN THE BOOK, THIS IS UNDER, UH, THIS IS ITEM DISCUSSION UNDER THE TAB TWO.
UM, MANY OF THOSE PARTS YOU'VE HAD SEEN BEFORE.
SO, UM, YOU'LL SEE THE FIRST ONE IS THE ASSET ALLOCATION.
UM, YOU'LL SEE THAT WE ARE ABOUT 82% IN STOCKS.
WE HAD NOTED UP OUR EQUITY WEIGHT FROM APPROXIMATELY 78 79 TO 82 83.
THE PORTFOLIO IS SITTING RIGHT THERE.
UM, SO ABOUT, SO AS OF YEAR END, ABOUT 16 7, 7 3 FOR THE MARKET VALUE.
UM, CHART YOU'RE FAMILIAR WITH.
UM, PAGE THREE JUST TALKS ABOUT LOOKING BACK AT THE MARKET VALUES OVER TIME, STARTING BACK IN THE LAST, UH, SINCE 2020, THE OUTFLOWS HAVE BEEN CONSISTENT SINCE, STARTED BACK IN 20 17, 6, AND CURRENTLY SITTING IN 16.7 MILLION.
PERFORMANCE DATE ARE THE ONE YEAR NUMBER.
THE, UH, FIXED INCOME WAS UP, UH, 6.13, BENCHMARK 6 1 1.
AND THIS PORTFOLIO OVER TIME AS EARNED.
YOU TAKE A LOOK AT THE EQUITY NUMBER, UH, DOUBLE DIGIT RETURN, 15% WHEN WE TAKE A LOOK.
UH, AND IT WAS INTERESTING WHEN WE, WE TOOK A LOOK AT THE NUMBERS.
IT WAS AN INTERESTING YEAR BECAUSE WHEN YOU WENT BACK AND YOU THOUGHT AT THE BEGINNING OF THE YEAR, JUST THE CONCERNS EVERYBODY HAD.
WELL, IS THE ADMINISTRATION GONNA CRUNCH THE ECONOMY WITH THE TARIFFS? IS HE GONNA OVERHEAT IT BY WANTING TO CUT RATES? ARE WE GONNA FIRE THE FED? UM, YOU TOUCHED ON BEAR MARKET RETURNS, UH, EARLY IN THE YEAR YOU WERE DOWN OVER 20%, AND YET THE MARKET UP LARGE CAP STOCKS, LOOKING ON THIS PAGE, WHICH YOU'VE SEEN BEFORE, UH, BONDS WERE UP SIX TO SEVEN DEPENDING UPON YOUR DURATION DUE TO THE FED RATE CUTS.
UM, YOU HAD DOMESTIC EQUITIES, LARGE CAPS UP.
UH, 16, 17, YOU HAD, UH, MID CAPS UP ABOUT 10, AND YOU HAD SMALL CAPS UP 12.
SO IT WAS A BROAD BASED RALLY ACROSS THE BOARD ON THE FIXED INCOME, WE EXTENDED DURATION A LITTLE BIT, UM, TO, I ADDED SOME BONDS ON THE LONGER END TO TAKE ADVANTAGE OF THE RATE CUTS AND AVERAGE MATURITY ON THE PORTFOLIO IS ABOUT 4.1 YEARS.
YOU CAN SEE THE BONDS THAT WE'VE ADDED AND THE BONDS ON THE PORTFOLIO.
WE TAKE A LOOK, YOU CAN SEE THE PORTFOLIO BREAKING OUT BY SECTORS.
UH, NEW NAMES THAT WE ADDED IN TELECOM.
UH, WE ADDED REDDIT AND CONSUMER DISCRETIONARY, UH, BIRKENSTOCK AND DUTCH BROTHERS, THE COFFEE, UH, COMPANY.
UH, ON THE CONSUMER CYCLICALS, WE PICKED UP DOLLAR GENERAL, UH, ON ENERGY.
WE ADDED, UH, CITI GROUP AND GOLDMAN SACHS NAMES.
WE ALSO ADDED, UM, CAPITAL ONE, WHICH WE HAD.
IT'S NOT REFLECTED ON THE DECEMBER YEAREND STATEMENT YET.
UH, UNDER DRUGS, UH, ROYAL PHARMA.
AND THEN UNDER TECH, WE ADDED MONOLITHIC.
SO THOSE ARE SOME OF THE NEW NAMES THAT WE HAVE.
UM, AGAIN, PART OF OUR WAITING IN THE PAST WE HAD BEEN 80 20, UH, DOMESTIC TO INTERNATIONAL.
UM, BUT WE SAW A HUGE RALLY, UM, WITH INTERNATIONAL, UH, EARNING ABOUT 30, 32 TO 33%.
THERE WAS REVERSAL AFTER A HUNDRED PERFORMANCE IN 2024.
AND, UH, A LOT OF THAT PERFORMANCE WAS DRIVEN BY, UH, THE CURRENCY TRANSLATION THAT THE DECLINE IN THE DOLLAR.
AND THAT PICKED UP ALMOST ABOUT A THIRD OF THE PERFORMANCE ON THE NARROW ON THE, UH, LOCAL MARKETS.
THE PERFORMANCE NARROW WAS A LOT NARROWER IN IN CURRENT CURRENCIES.
[00:10:01]
YOUR INVESTMENT AND OUTLOOK, UM, I'M, I'M JUST GONNA ADD COMMENTS.I WANNA BE RESPECTFUL THE COMMITTEE SCHEDULE THIS MORNING, BUT, UM, ALL OUR THOUGHTS ARE THERE.
ALL OUR COMMENTS ARE THERE IN OUR OUTLOOK.
I'M JUST GONNA TAKE A COUPLE MINUTES AND HIGHLIGHT THAT FOR THE COMMITTEE.
UM, THE INCREASES THAT WE SAW ON THE EQUITY MARKETS, UH, WERE DRIVEN BY ONE EARNINGS SOLID OR ECONOMIC GROWTH.
UH, LOWER INTEREST RATES AND FALLING DOLLAR.
AS I MENTIONED, INTERNATIONAL EQUITIES DID WELL AFTER SEVERELY UNDERPERFORMING IN 2024, ONLY INTERESTING, ONLY TWO OF THE MAG SEVEN.
FOR THOSE THAT FOLLOW OUTPERFORMED THE S AND P 500, UM, THAT WAS GOOGLE AND NVIDIA AND WHAT WORKED AND WHAT DIDN'T WORK LAST YEAR.
HIGH BETA MOMENTUM AND GROWTH OUTPERFORMED HIGH QUALITY VALUE AND LOW VOLATILITY.
WHEN WE TAKE A LOOK AT OUR ECONOMIC OUTLOOK, UM, FOR THE UPCOMING YEAR, WE ARE OPTIMISTIC.
SECOND QUARTER GROWTH FOR GDP, UH, HAVE BEEN ABOUT 3.8.
IN THE FOURTH QUARTER WAS 4.4.
FOURTH QUARTER IS FORECASTED TO EXCEED 5%.
SO FOR 2006, UH, FORECASTS ARE AROUND TWO AND A HALF TO 3% FOR SOLID GDP GROWTH.
WE THINK, UM, WE WILL COME OUT ON THE OTHER SIDE OF THAT.
WHY, UH, WHY WE'RE OPTIMISTIC ON THE ECONOMY, UH, BENEFITS FROM THE BIG BEAUTIFUL TAX BILL.
FOR EXAMPLE, COMPANIES CAN WRITE OFF DEPRECIATION FOR ANY NEW EQUIPMENT, UH, 100% LOWER INTEREST RATES.
UH, WE ARE IN A 16 MONTH, UH, INTEREST RATE CYCLE OF DECLINING RATES.
UH, AND WE ARE FORECASTING FOR TWO RATE CUTS IN 2026.
YOU HAVE CONTINUED AI AND TECH LED CAPITAL SPENDING.
UM, HOPEFULLY WE'LL KEEP OUR FINGERS CROSSED FOR TARIFF STABILITY.
UNLESS THE ADMINISTRATION GETS MAD AT SOMEBODY.
WE HAVE A REDUCTION IN IMPORTS, WHICH HELPS GDP.
WE HAVE WAGE GAINS AND SEEDING INFLATION.
UH, CONSUMER SPENDING WAS SOLID IN, UH, ABOUT 3.5%.
WE LOOK AT AROUND TWO AND A HALF TO THREE.
WE'RE LOOKING AT GROWING BANK LOANS, LOANS, UH, FALLING OIL PRICES AND DEREGULATION.
SO THERE'S A WHOLE LAUNDRY LIST OF THINGS THAT ARE CLICKING RIGHT NOW.
UM, INFLATION, IT'S INTERESTING.
INFLATION HAD DROPPED FROM 9% DOWN TO ABOUT 2.7.
OUR TAKE, UM, SOMEWHAT STICKY.
UH, SO WE LOOK AT IT TO BE SLIGHTLY DOWN TO SIDEWAYS.
WE'RE HAVING, IT'S GONNA BE A REACH FOR THE FED TO HIT THEIR 2% TARGET THAT'S OUT THERE.
UM, WHAT'S HELPING INFLATION, THE DECLINE IN RENT HOUSING IS WEAK TARIFF STABILITY AND OIL PRICES IN THE SIXTIES.
UM, OUR TAKE, YOU KNOW, UH, FORECAST OUT, THERE WERE TWO RATE CUTS.
UM, WE'RE HAVING STRUGGLING TO SEE THE SECOND RATE CUT COME.
UM, ONLY BECAUSE IF YOUR ECONOMY IS GROWING AT 4%, 3% TAKE YOUR NUMBER, UM, AND YOU HAVE INFLATION SITTING AT AROUND, SAY TWO AND A HALF TO 3%, IT'S DIFFICULT TO MAKE AN ARGUMENT TO SAY YOU WANT ADDITIONAL CUTS, WHICH COULD BE INFLATIONARY IN NATURE.
UM, CHAIRMAN POWELLS, UH, TENURE ENDS IN MAY.
UM, THE NEW CHAIRMAN IS NOMINATED, UH, FROM THE CITY MEMBERS OF THE BOARD OF GOVERNORS THAT ARE ON THERE.
AND IT'S CONFIRMED BY THE SENATE.
THE KEY QUESTION THAT WE HAVE IS, WILL THERE BE THE CONTINUED INDEPENDENCE THAT THE FED HAS RELATIVE TO THE ADMINISTRATION, OR WILL IT BE SOMEBODY THAT, UM, IS THE PRESIDENT LIKES TO PUT IN THERE? THEN THAT SAYS, WELL, WILL THEY STILL MAINTAIN THEIR OWN INDEPENDENCE? MONEY SUPPLY, UH, IS STARTING TO GROW AGAIN.
UM, IT GREW AND IT WAS BEEN INTERESTING.
DURING COVID, IT GREW TO ABOUT 27%.
THE FED THEN, UH, TURNED IT NEGATIVE, AND THEN WE SEEN IT TURN POSITIVE.
AND THE FED BALANCE SHEET, UM, IS AT 6.57 TRILLION DOWN FROM NINE.
AND THE FED HAD STOPPED, UH, WHAT THEY CALL AS THEIR BALANCE SHEET NORMALIZATION, WHERE THEY'RE LETTING THINGS RUN OFF AND BRINGING THAT BALANCE DOWN.
UH, IT'S GONNA BE RIGHT AROUND THAT SIX AND A HALF MILLION.
UH, THE DOLLAR, UH, CONSOLIDATED IN 25 AFTER REACHING AN OVERSOLD LEVEL.
EXPECT THE DOLLAR TO DRIFT LOWER THIS YEAR AS FED CUTS CONTINUE.
UNEMPLOYMENT, UH, FOUR AND A HALF PERCENT.
WE'VE GOT ABOUT 164 MILLION PEOPLE EMPLOYED AND SEVEN POINT A HALF MILLION UNEMPLOYED.
UH, INITIAL CLAIMS THAT REMAIN STABLE, CONTINUING CLAIMS HAVE NUDGED UP.
WHAT THAT MEANS, IT'S TAKING A LITTLE BIT LONGER FOR PEOPLE TO FIND JOBS RIGHT NOW.
UM, THERE HAS BEEN A SLOW, SLOW DOWN IN NEW JOB CREATION.
[00:15:01]
UM, IN THE PAST HAS BEEN NORTH OF A HUNDRED THOUSAND FOR THE SECOND AND THIRD QUARTER HALF, WE BELIEVE.PART OF THIS CAN BE ATTRIBUTED TO POLICY SHOCKS, TRADE WAR WITH THE TARIFF TECH COMPANIES REALIGNING THEIR WORKFORCES AND AI RELATED.
SO WE STILL LOOK FOR THAT UNEMPLOYMENT RATE TO SIT RIGHT AROUND IN THE MID FORCE, WHICH CAN BE, UH, CONSTRUED AS FULL EMPLOYMENT BY THE FEDERAL RESERVE HOUSING.
UM, THIS I'M BETTING IS GONNA BE OUR SURPRISE FOR THIS YEAR.
INTEREST RATES ARE DOWN, UH, 60 BASIS POINTS.
UM, AND, AND IT'S, SO WHAT I LOOK AT FOR 2006 ON 26, I'M NOT SURE IT'S SUSTAINABLE, BUT WE'RE STARTING TO SEE SOME GREEN SHOOTS WITHIN THE HOUSING MARKET.
UM, EXISTING HOME SALES WERE UP 5% IN DECEMBER, PENDING HOME SALES.
WERE UP MORTGAGE APPS FOR PURCHASES WERE UP AND NEW HOME SALES WERE UP.
UM, SO, YOU KNOW, WE HAVE A LOT OF PEOPLE THAT WANT TO BE ABLE TO BUY A HOUSE, IS THE ISSUE OF BEING ABLE TO AFFORD IT.
AT THE CURRENT RATES, WE'RE STARTING TO SEE A LITTLE BIT OF PICKUP.
YOU KNOW, I'M OLD SCHOOL, SO IT WAS ALWAYS A 30 YEAR MORTGAGE WHEN WE NEEDED OURS AND DID THE BAKER'S DOZEN TO PAY IT DOWN, SO TO SPEAK.
BUT NOW WE'RE STARTING TO SEE A LITTLE BIT OF PICKUP IN VARIABLE MORTGAGES, WHICH NOW MAKE IT A LITTLE BIT MORE ATTRACTIVE WITH HOPES THAT RATES ARE LOWERED ALONG THE POINT.
THEN YOU CAN LOCK IN, UM, THE CONSUMER IN SPITE OF TARIFFS, UM, SOFTENING EMPLOYMENT.
BALANCE SHEETS ARE SOLID, AND HOUSEHOLD DEBT RATIOS ARE MANAGEABLE.
UH, CREDIT CARD BALANCES UP SLIGHTLY.
CORPORATE SIDE, INCREASING EARNINGS, INCREASING DIVIDENDS, INCREASING BUYBACKS, UH, AND THE BALANCE SHEETS ARE STRONG FOR FIXED INCOME, UH, FOR FIXED INCOME.
UH, WE'RE CONSTRUCTIVE IN OUR LOOKS AS YIELDS ARE ATTRACTIVE, BOTH ON AN INFLATION ADJUSTED BASIS AND A RELATIVE BASIS.
UM, RATES SHOULD BE A LITTLE BIT LOWER THIS YEAR.
UH, LIKE I SAID, WE'LL SEE ON THAT.
THE UPSIDE TO THAT, UM, IF INFLATION FALLS FURTHER THAN EXPECTED, UH, WE HAVE A NEW DOVISH CHAIRMAN.
YOU CAN SEE FURTHER CUTS ON THE DOWNSIDE, STRONGER THAN EXPECTED GROWTH, UH, TRADE CONFLICTS OR AN INCREASE IN INFLATION, OR WE HAVE AN AHA MOMENT WITH THE DEFICITS AGAIN, UM, POLITICAL.
OH, THERE'S JUST SO MUCH WE CAN GO ON FOR HALF AN HOUR HERE.
UM, WE HAVE INTERNAL ELECTIONS COMING UP.
SO THE CIRCUS WILL BE COMING THE TOWN IN NOVEMBER.
UM, ALL 435 SEATS, THE HOUSE OF REPRESENTATIVES ARE UP AND 35 SEATS IN THE SENATE ARE UP.
UH, AS YOU KNOW, THE REPUBLICANS CONTROL BOTH, UH, THE SENATE AND THE HOUSE.
UH, BUT THEY'RE LOOKING, I MEAN, YOU GOT A FEW SEATS SWING EITHER WAY, FIVE, SEVEN SEATS.
THEY'RE GONNA HAVE A CHANGE IN LEADERSHIP IN EITHER THE HOUSE OR THE SENATE.
UM, WE NOW HAVE THE DON ROW DOCTRINE, WHICH IS THE OFFSHOOT OF THE MONROE DOCTRINE, UM, IN WHICH WE CREATE A SPHERE OF INFLUENCE, WHICH THE ADMINISTRATION IS TRYING.
AND WHETHER IT'S CUBA, WHETHER IT'S GREENLAND, WHETHER IT'S VENEZUELA, UM, IT MAKES FOR INTERESTING NEGOTIATIONS TO SAY, TO SPEAK, BUT THE BIGGEST QUESTION IS WHAT'S THE IMPACT INDIRECTLY ON THAT? NOT WHAT I SAY, BUT WHAT I DO.
AND COULD THAT MAKE A CHANGE FOR WHAT CHINA DOES WITH TAIWAN? IF, IF THE AMERICANS ARE SAYING, STAY OUT OF OUR BACKYARD INFLUENCE, DOES CHINA HAVE THE SAME RIGHT TO SAY THAT TAIWAN? AND IT'S INTERESTING, AND IT WAS JUST IN THE NEWS OVER THE LAST COUPLE DAYS.
YOU SAW A SHAKE UP WITHIN THE MILITARY, WITHIN THE CHINESE LEADERSHIP.
UM, SO JUST REAL QUICK AS I FINISH UP, STAY ON TRACK.
UM, WE ARE NOW ENTERING THE FOURTH YEAR OF EQUITY BULL MARKETS.
IT BEGAN, IT WAS BIRTHED IN OCTOBER OF 22.
HISTORICALLY, UM, BULL MARKETS RUN ON AVERAGE SIX TO SEVEN YEARS.
AND, UH, THE RETURNS ON BULL MARKETS ARE IN THE PAST.
WE'VE SEEN RETURNS OF ABOUT 225% AGGREGATE DURING THAT TIME PERIOD.
HISTORY POINTS OUT THAT MIDWAY THROUGH THIS MIDTERMS, UH, MARKETS HAVE HAD HIGH SINGLE DIGIT RETURNS.
BUT THE DOWNSIDE TO THAT HISTORY HAS REFLECTED GREATER PULLBACKS.
AND, UM, OTHER THAN THE BEAR MARKET LAST YEAR WITH TARIFFS, OUR PULLBACKS WERE MINIMUM.
UM, OUR BASE CASE, UH, FOR THE OUTLOOK RATE CUTS, EASY MONEY CONDITIONS, BIG, BEAUTIFUL BUILD, DOUBLE DIGIT EARNINGS GROWTH, INCREASED CAPITAL SPENDING, CONTINUED AI INVESTMENT AND PRODUCTIVITY.
[00:20:01]
WHILE WE RING US FOCUSED, UM, WE'RE ALSO LOOKING AT INTERNATIONAL.AND, UM, WE SEE OPPORTUNITIES BOTH IN EMERGING MARKETS AND, UH, DEVELOPED INTERNATIONAL.
UH, IN THE EMERGING MARKET CASE, WE'RE NOW HAVING DISCUSSIONS ON, UM, WHETHER WE SHOULD INCREASE THAT WAITING THERE.
UH, WE'RE SEEING A PICKUP IN EMERGING MARKET, DOMESTIC DEMAND, UH, WHAT WE CALL A GLOBAL DRAG FRAGMENTATION IF THE US IS NOT TAKING AS MUCH FROM CHINA.
NOW, WE SAID WE WANTED TO NEAR SHORE ONSHORE THINGS, BUT WE CAN'T BUILD SCALE QUICK ENOUGH ON DOING IT.
ADD AN ACCEPTABLE PRICE IN A TIMELINE.
SO IF YOU'RE NOT DOING IT WITH CHINA, WHAT YOU'RE DOING IS BRINGING IN OTHER COUNTRIES THAT CAN FILL THE TRADE GAP IN SUPPLY CHAIN.
UH, CHINA, NO, CHINA IS ALWAYS A MIXED BAG, BUT NO LONGER A HEADWIND.
UH, MUCH OF THE SECULAR DECLINE IN HAS PAST IS SO SLOW OF MANAGE.
UM, CAN WE GO TO THIS AND, AND THE FORWARD EMERGING MARKETS 12 MONTH EARNINGS, UH, FORECASTS HAVE, HAVE RISEN.
UM, AND WHEN WE LOOK AT INDIA, UM, INDIA'S EXPECTED TO GROW BY 7% THIS YEAR.
AND WE LOOK AT THEM TO, UM, CURRENTLY THEY WE'RE THE FIFTH LARGEST, UH, ECONOMY IN THE WORLD.
AND NOW THEY'RE GONNA BE OVERTAKING JAPAN AND BECOMING THE FOURTH LARGEST.
SOMEBODY TO KEEP YOUR EYE ON ENERGY.
THE ONLY PLACE I DON'T HAVE A LOT OF GOOD NEWS, UNLESS IT'S AT THE HUMP, UM, UH, EIEA, UH, INTERNATIONAL ENERGY, UH, ASSOCIATION, UM, IS FORECASTING THAT GLOBAL OIL PRODUCTION IS GONNA CURRENTLY OUT, PER SE, OUT PACE DEMAND CREATING.
WE'RE LOOKING AT ANOTHER ADDITIONAL 3 BILLION, 3 MILLION BARRELS PER DAY COME ONLINE, BUT WE LOOK AT NEW GROWTH OF ONLY ABOUT 900,000, UH, BARRELS PER DAY.
SO, UM, THEY'RE FORECASTING MAYBE, UH, PRICES TO DROP INTO THE MID FIFTIES, WHICH, YOU KNOW, I HAVEN'T REALLY SEEN IT AT THE GAS STATION AT BREAK, TWO BUCKS A GALLON, BUT THERE'S TIMES IT WAS GETTING CLOSE.
IS THAT US PRODUCTION? ABSOLUTELY.
WORLD GLOBAL GLOBAL PRODUCTION.
UM, US PRODUCTION IS ABOUT 13.5, 13.6 MILLION BARRELS TODAY, MOST OF IT COMING OUT OF TEXAS.
WE'RE ALSO GONNA SEE A LITTLE BIT OF A RAMP UP IN ALASKA, UM, FOR THERE.
SO, UM, YOU KNOW, THAT BEING SAID, WE'RE LOOKING FOR A GOOD YEAR.
WE'RE FORECASTING A GOOD YEAR, BOTH ECONOMICALLY AND MARKET WISE.
UM, WE REMAIN HEAVIER WEIGHTED TOWARDS EQUITY, UM, AS WE SEE THAT AS WE'RE IN THE MIDST OF MARKET.
SO ME ON AGENDA, CAN I ANSWER ANY QUESTIONS FOR THE COMMUNITY? WOULD YOU RECOMMEND ANY CHANGES TO WHAT WE DOING? NO, THE ONLY, UH, THE ONLY CHANGE THAT, UH, WITHIN THE BROADER POLICY GUIDELINE IS 80 20 IT OFF A LITTLE ON THE OTHER SIDE, UH, TO 82%.
SO THAT'S NOT WHAT I WOULD DEFINE WITHIN MY SCOPE TO MANAGE.
I ALSO, UH, WE'VE EXTENDED SECURITIES A LITTLE BIT, UH, JUST WITH RATE CUTS AND THEN WE GONNA SHIFT A LITTLE BIT TO EMERGING MARKETS WITHIN OUR INTERNATIONAL MIX.
UH, BUT THOSE ARE ALL WORKING CHANGES WITHIN THE PORTFOLIO.
COULD DO YOU HAVE AN, UH, A CONCEPT OF HOW LONG? I DON'T KNOW.
I'M TRYING TO THINK OF WHAT THAT, WHAT THAT STUDY IS CALLED THAT YOU DO EVERY YEAR, BUT HOW LONG WE'RE GONNA NEED TO HAVE THE BALANCE THAT WE HAVE IN OUR PENSION FUND, THAT'S SOMETHING THAT'S
THEY'LL PRESENT THAT, UH, THAT WILL BE PRESENTED IN FEBRUARY OR MARCH NYHART.
UH, WE FED THEM CERTAIN AMOUNT OF INFORMATION THAT THEY'RE IN THE PROCESS OF WORKING UP THAT, UH, THAT'LL, THAT'LL BE COMING.
WE'VE GOTTA HAVE THAT FINISHED BEFORE WE CAN FINISH THE AUDIT.
ANNUAL AUDIT
SO I, I THINK WE'RE IN A, IN A GOOD SITUATION, OUR BEST.
IN TERMS OF MIX, WE, WE DON'T HAVE ANY EXPOSURE METALS OR ANYTHING, DO WE? NO.
DO YOU GUYS HAVE ANY PROSPECTS ON WHERE YOU LEAVE METAL OVERHEAD? NO.
IT'S, IT'S ONE OF THOSE OFF CHARTS RIGHT NOW, BUT YEAH.
AND, AND YOU KNOW, IT WAS INTERESTING IS I DIDN'T THINK I HAD TIME.
I I HAD A COUPLE COMMENTS ON GOLD.
IT'S, IT'S A QUESTION OF CHASING IT.
YOU KNOW, GOLD WAS UP 62% LAST YEAR.
[00:25:01]
A HUNDRED PERCENT.AND YOU KNOW, ON THE NEAR TERM YOU'RE HOPING FOR A CONSOLIDATION, YOU'RE LOOKING FOR SUBTYPE OF PULLBACK.
OKAY? AND BUT GOLD BEING UP 62%, PARTICULARLY A LITTLE BIT LAST YEAR.
GOLD IS UP 14% THIS YEAR OUT OF THE GATES.
UM, IT GETS A LITTLE PRICEY, UM, ESPECIALLY, BUT WHEN YOU LOOK BACK, AND I WENT BACK AND I LOOKED AT PRIOR CYCLES OF WHAT GOLD HAD DONE, 70 TO 74, GOLD WAS UP 412%, 76 TO 80 GOLD WAS UP 700%.
99 TO 2011, GOLD WAS UP 643%, UH, 2018 TO 2020 74%.
SO IF YOU LOOK AT HISTORY AND YOU CAN MAKE AN ARGUMENT THAT GOLD STILL HAS ROOM TO RUN, BUT IT'S ONE OF THOSE, YOU GOTTA HOLD YOUR NOSE TO GO IN AT THIS PRICE RANGE.
AND THEN YOU ALSO HAVE WHAT WE DEFINE AS A LOT OF FOMO, IF YOU'RE MISSING OUT, AND WE'RE SEEING THAT WITHIN THE SILVER MARKET, PEOPLE COMING IN, YOU KNOW, AND JUMPING IN AND BUYING IT.
I MEAN, GRANTED YOU HAD CENTRAL BANKS BUYING IT, FOR EXAMPLE.
YOU HAD PICK UP AND JEWELRY FOR EXAMPLE.
BUT NOW IT'S JUST REALLY GOT A LOT OF RETAIL STUFF.
WELL, AND THEN THE SILVER, YOU KNOW, OBVIOUSLY HAS A LOT OF INDUSTRIAL USES, BUT, YOU KNOW, WITH GOLD 5,000, I'M, I'M, I'M, PEOPLE ARE SAYING, WELL, IT'S GONNA HIT 10, YOU KNOW, AND YEAH, YEAH.
AND HOME WAS GONNA GO TO 200 AND YEAH.
I MEAN, THE UPSIDE IS IS ALWAYS MUCH GREATER.
ON THAT, JEFF, JUST OUTTA CURIOSITY QUESTION, I MEAN, YOU LOOK AT GDP NUMBERS ARE, ARE VERY STRONG, BUT I GUESS I HAVE READ SOME THINGS, OF COURSE, BE CAREFUL WHAT YOU READ, BUT THINK THAT A FAIR CHUNK OF THAT IS DRIVEN BY AI SPENDING, CORRECT? IS JUST THE QUESTION IS THAT THESE, YOU KNOW, THOSE TOP LINE NUMBERS ARE VERY GOOD, BUT IS THAT MASKING SOME WEAKNESSES IN OTHER AREAS BY THE, THE AMOUNT OF MONEY THAT'S GOING INTO AI THESE DAYS? THE ANSWER, UM, I THINK THE GROUP NOT YET I THINK WOULD BE THE BEST ANSWER BECAUSE I HAVE NOT, I HAVE SEEN AI AND CAPITAL SPENDING DEPLOYED MORE ALONG IN THE TECH STUFF, BUT WE HAVEN'T REALLY SEEN IT PLAY ALL THE WAY THROUGH.
AND FOR EXAMPLE, HEALTHCARE AND CONSUMER STAPLES, FOR EXAMPLE.
UM, SO EVEN IF, TO YOUR POINT ANY OF IT WAS MASKING, YOU THINK ABOUT LONG TERM GROWTH OF GDP IS AROUND 2.5% WHEN WE GO BACK.
SO, UM, I, I THINK TO THE OTHER SIDE OF THAT COIN, I THINK WHAT CAPITAL SPENDING AND AI HAS DONE HAS, HAS MADE IT RUN HOTTER, EXCEEDING LONG TERM GROWTH.
SO I STILL THINK YOU STILL HAVE GIVEN WHERE WE'RE AT ABOUT TWO POINT HALF TO 3% BASELINE.
I THINK ALSO JEFF, THAT TO, TO, TO USE AI, THERE'S GOING TO BE A, UH, I THINK IT'LL BE BIGGER THAN THE CURRENT CAPITAL, UH, TO USE IT.
THERE'LL BE A CAPITAL SWELL THAT'S MUCH BIGGER THAN WHAT IT IS TO, TO, TO MAKE AI WORK.
WELL, YOU GOTTA HAVE STUFF TO USE IT ON.
I MEAN, IT'S, THERE'S APPLICATIONS APPLI YEAH.
AT THE APPLICATION LEVEL, THERE'LL BE A LOT OF CAPITAL SPENDING.
SO MAYOR, UM, CRYPTOCURRENCY, I KNOW THE PRESIDENT'S GOT HIS OWN CRYPTO NOW RUNNING.
UH, WHERE ARE WE, UH, HOW DO YOU FEEL THAT'S GOING TO IMPACT THIS WHOLE SITUATION FINANCIALLY, ESPECIALLY FOR THE BANKS AND THINGS? YOU KNOW, IT'S INTERESTING, UH, AT LEAST ON MY LEVEL, OKAY.
WE HAVE NOT, OTHER THAN UNLESS A CLIENT REQUESTS IT, WE HAVE NOT STEPPED IN TO DO IT.
AND THERE ARE THOSE THAT TAKE THE SIDE THAT IT'S TOUGH TO SEE WHAT THE UNDERLYING SUPPORT OF BITCOIN AGAINST.
UM, A LOT OF IT, THERE WAS A BILL OR A LEGISLA PIECE OF LEGISLATURE THAT WAS, I WANT TO SAY OVER A MONTH AGO THAT WENT BEFORE CONGRESS OR WENT BEFORE THE SEC, UH, TO ENHANCE CRYPTO MORE.
I, IT'S ON THE TIP OF MY TONGUE, FORGIVE YOU.
SO IT'S BECOMING, AS WE SEE IN TIME, BECOMING MORE AND MORE EMBRACED, BUT I DON'T THINK YOU'RE THERE YET UNTIL IT'S LEGISLATIVELY APPROVED.
OH, AND THEN YOU GET THE WHOLE, I GUESS THE STABLE COIN.
I'M, I'M NOT GONNA BLAME IT ALL TO BE AN EXPERT ON EITHER THIS BUT THE STABLE COIN PART, RIGHT.
WHICH I GUESS HAS LESS VOLATILITY.
MAYBE YOU COULD TALK ABOUT THAT.
DOES THAT START REPLACING? 'CAUSE THAT'S OUR REPLACING THEM BASICALLY IN THE MARKETPLACE, RIGHT?
[00:30:01]
UM, I GUESS THE BEST ANSWER I HAVE FOR YOU IS MORE TO COME ON THAT.I MEAN, I CAN PUT TOGETHER 20 MINUTES WITH A LITTLE PREP
I MEAN, WE GO BACK AND FORTH ON IT HERE.
SHOULD WE ALLOW IT FOR OUR CLIENTS TO HAVE IT IN THERE? CAN WE MAKE THAT RECOMMENDATION ON IT AND PUT IT IN THERE? THAT'S AN ISSUE.
WELL, THE OTHER ONES LEAVE YOU WITH, AND, AND LAST POINT WE HAD A DISCUSSION ON PART OF THE ASSET ALLOCATION COMMITTEE AND WE TALK ABOUT VALUATIONS AND I DIDN'T TOUCH ON IT.
AND WE TALK ABOUT, UH, PES, WHICH YOU'RE ALL FAMILIAR WITH, RIGHT? HISTORICALLY, PES IN THE MARKETPLACE, YOU GO BACK ON AVERAGE, WHAT, 16, 17% RIGHT? ON AVERAGE.
OKAY? YOU'RE NOW SITTING AT A PE A FORWARD PE OF 22 TIMES WITHIN THE MARKET.
SO IT IS ELEVATED, OKAY? BUT, AND THE THING THAT ALWAYS SCARES ME IS WHEN SOMEBODY SAYS IT'S DIFFERENT THIS TIME AND THEN I START TO CRUNCH.
BUT LET ME LEAVE YOU WITH THE LAST THOUGHT.
AS YOU THINK ABOUT THIS AND THE S AND P 500, THE CONSTRUCTION OF IT HAS CHANGED OVER TIME.
OKAY? IF YOU THINK BACK TO 1990, OKAY, TECH WAS 5% OF THE S AND P 500.
SO YOU HAD A LOT MORE LOW ROI, THE LOW ROA, UM, CAPITAL INTENSIVE BUSINESSES, A LITTLE MORE CYCLICAL IN NATURE.
AND SO YOU NEVER REALLY HAD THE MULTIPLES THAT WERE PUT THERE.
YOU LOOK AT TODAY AND YOU LOOK AT TECHNOLOGY BEING WHAT, 33, 30 4% YOU ADD IN TELECOM WITH THE GIANTS, LIKE GOOGLE FOR EXAMPLE, YOU HAD A, YOU'RE ALMOST TALKING 45% OF THE S THESE TYPE OF COMPANIES ARE LESS CAPITAL INTENSIVE.
THESE COMPANIES HAVE HIGHER GROWTH RATES.
WE ARE IN A CAP WEIGHTED MARKET.
AND SHOULD THE TECH COMPANIES WHICH HAVE IN THE PAST HAVE ALWAYS TRADED AT A HIGHER MULTIPLE, SHOULD THAT CONTINUE AND GIVEN IT'S A BETTER WEIGHT, THE HEAVIER WEIGHTING WITHIN THE MARKET, NOW THAT PULLS UP ALL THE MULTIPLES IN GENERAL TO THAT.
I'M NOT SAYING 20 TWOS APPROPRIATE, BUT GIVEN THE CHANGE IN CONSTRUCTION IS 16, 17, WHAT WE'VE HAD AN APPROPRIATE MULTIPLE WHEN WE LOOK BACK FOR COMPARISON PURPOSES.
SO JUST A LAST POINT FOR CONSIDERATION, SOMETHING THAT, THAT WE'RE GOING BACK AND FORTH ON.
ANYWAY, UM, TO THE COMMITTEE, THANK YOU.
IF YOU NEED ME IN MARCH, APRIL AND YOU NEED A MARKET UPDATE, PLEASE HOLLER AT ME.
NOW, UM, DO ANYBODY HAVE ANY THOUGHTS BEFORE WE GO ON TO INSURANCE? ALRIGHT, WE'RE GOING TO HAVE A PRESENTATION BY MCGRIFF, UM, SUSAN'S HERE.
WE'RE GONNA HAVE OUR THREE ONE RENEWAL, UM, COMING UP.
SO SHE'S HERE TO GIVE A OUTLOOK ON THE MARKET.
AND FROM WHAT WE KNOW TODAY, UM, GIVE US SOME IDEAS OF WHAT WE CAN EXPECT.
DIDN'T WE JUST TALK ABOUT LAST YEAR
THERE SHOULD BE SOMETHING WE TALK ABOUT ALL THE TIME.
GOTTA KEEP, SHOULD ALL LOVE IT.
UM, FORTUNATELY I GET TO FOLLOW FROST AND HE GAVE Y'ALL GREAT NEWS ABOUT YOUR FINANCIALS.
AND NOW I GET TO GIVE YOU GREAT NEWS ALSO ABOUT YOUR UPCOMING INSURANCE RENEWAL, RIGHT? SO WHAT YOU MAY OR MAY NOT KNOW IS THAT, UM, LAURA AND BRETT, UM, MET WITH US LAST WEEK ACTUALLY.
AND WE BROUGHT IN THE UNDERWRITERS FROM LONDON TO COME LOOK AT THE FACILITIES AND TAKE THE TOUR OF THE PORT IN ITS OPERATIONS, UM, AND LOOK AT THE GOOD THAT YOU'RE DOING AND EVERYTHING YOU'RE DOING WITH GROWTH AND INVESTMENTS.
AND THEY WERE VERY IMPRESSED WITH THE WAY EVERYTHING IS WORKING.
UM, THE MARKET RIGHT NOW, UM, AS, AS THE FINANCIAL MARKET IS CYCLICAL, INSURANCE IS PART OF THAT FINANCIAL MARKET, RIGHT? SO IT'S ALSO VERY CYCLICAL.
WHEN I WAS HERE A FEW YEARS AGO, IF YOU'LL REMEMBER, WE WERE IN A VERY HARD MARKET.
IT WAS HARD TO GET THE LIMITS, IT WAS HARD TO GET PREMIUM.
AND WE SAW A BIG INCREASE IN WHAT OUR RATES WERE DOING.
THIS YEAR IS A TOTALLY DIFFERENT STORY.
WE'RE IN A VERY SOFT MARKET RIGHT NOW.
UM, WHICH MEANS YOU'RE GOING TO SEE YOUR RATES COMING DOWN.
WHAT YOU'RE NOT GONNA SEE ARE YOUR PREMIUMS COMING DOWN.
AND THE REASON YOU'RE NOT GONNA SEE THAT IS BECAUSE WE HAVE A HUGE INCREASE IN OUR VALUES WITH THE NEW TERMINAL, WITH THE NEW PARKING GARAGE, WITH SOME OF THE THINGS YOU'RE DOING AROUND THE PORT.
YOUR INCREASE, YOUR VALUES HAVE INCREASED SUBSTANTIALLY AND YOUR REVENUE HAS INCREASED.
[00:35:01]
YOUR PROPERTY PREMIUMS, YOUR IN THE MARINE, YOUR PHYSICAL DAMAGE PREMIUMS, YOUR REVENUES AFFECT YOUR LIABILITY PREMIUMS, THE GENERAL LIABILITY, THE PUBLIC OFFICIALS LIABILITY, THE LAW ENFORCEMENT LIABILITY, ALL DRIVEN BY REVENUE.AND THEN YOUR PAYROLL AFFECTS YOUR WORKERS' COMP.
EACH OF THOSE METRICS, YOUR TOTAL INSURED VALUE, YOUR REVENUE AND YOUR PAYROLL ARE ALL UP.
SO TO COME HERE AND SAY, OH, WE'RE GOING TO SAVE TON OF MONEY ON THE PREMIUM, I'M NOT GONNA BE ABLE TO TELL YOU THAT.
BUT WHAT I AM GONNA TELL YOU IS WE'RE GONNA SAVE MONEY ON THE RATE AND THAT'S WHAT WE WANNA LOOK AT.
AND SO WHEN WE'RE LOOKING AT THE COMPARISON, SHOW YOU THE PAGE I WANT PROBABLY GO TO, THIS IS ALL ABOUT MCGRATH AND WHAT WE DO, JUST TO LET YOU KNOW, WE UM, WE WERE ACQUIRED BY MARSH MCLENNAN AGENCY A COUPLE OF YEARS AGO.
AND SO EVERYTHING YOU'RE GONNA SEE IS THE MARSH BRAND.
UM, WHICH IS A GREAT THING FOR MCGRATH BECAUSE MARCH IS THE BIGGEST, GIVES US A WHOLE LOT OF RESOURCES THAT WE DIDN'T HAVE BEFORE, LIKE BRINGING DOWN THE UNDERWRITERS FROM LONDON TO MEET WITH Y'ALL, TO GO THROUGH THE COURT OPERATIONS.
AND THIS IS THE PAGE YOU'RE ALL GONNA WANT TO FOCUS ON.
SO RIGHT NOW YOU'RE PAYING A RATE OF ABOUT $60 PER THOUSAND DOLLARS OF REVENUE.
WE'RE ANTICIPATING THAT'S GONNA GO DOWN TO ABOUT $52, WHICH IS HUGE, RIGHT? SO, AND AGAIN, THIS IS PER THOUSAND DOLLARS OF REVENUE REGARDING YOUR INSURANCE PREMIUMS. WE HAVE A COMPLETE ITEMIZATION OF HOW ALL THE, ALL THE PARTS ARE GONNA LINE UP.
IT'S STILL KIND OF EARLY TO GIVE YOU FINAL NUMBERS.
OUR RENEWAL ISN'T UNTIL MARCH ONE.
SO WE'LL COME BACK AND GIVE YOU SOME REAL HARD NUMBERS IN FEBRUARY SO THAT YOU'LL HAVE THOSE.
ONE OF THE DIRECTIONS THAT WE'RE LOOKING AT IS GIVING YOU AN OPTION FOR HIGHER LIMITS THIS YEAR, SPECIFICALLY ON PROPERTY INSURANCE COVERAGE.
RIGHT NOW YOU CARRY ABOUT A $50 MILLION LIMIT ACROSS THE BOARD FOR ONE OCCURRENCE.
WE'RE LOOKING AT INCREASING THAT ONLY BECAUSE YOUR TOTAL INSURED VALUE HAS INCREASED SUBSTANTIALLY.
WE WANNA MAKE SURE THAT IF SOMETHING HAPPENS, WE'RE NOT GONNA RUN SHORT ON LIMIT.
SO WE'RE GONNA BRING YOU AN OPTION.
THE NICE THING ABOUT IT IS EVEN THAT OPTION, YOU'RE STILL LOOKING AT A SAVINGS OF ABOUT 15 TO 18% OF WHERE YOU ARE NOW FOR YOUR TOTAL ADJUSTED RATE.
SO WE DO HAVE A FEW OPEN CLAIMS, UM, AND I WANTED TO BRING THOSE TO YOUR ATTENTION.
ONE OF THEM IS PROBABLY GONNA BE VERY COSTLY, UM, NOT GONNA AFFECT WHAT WE'RE DOING FROM AN INSURANCE FOR VIEW RIGHT NOW BECAUSE THE MARKET IS SO SOFT.
WE DO HAVE ONE PROPERTY CLAIM AND I THINK THAT ONE IS GETTING READY TO SETTLE.
IN FACT, I JUST SAW THE PROOF OF LOSS THAT WAS SENT TO THE PORT YESTERDAY FOR YOUR SIGNATURE.
THE SAFE BOAT RAN INTO APPEAR AND SO WE LOST THAT.
WE HAD TO REPLACE THE WHOLE THING.
UM, AND SO THAT CLAIM IS GONNA BE SETTLED PRETTY SOON.
THE CLAIM IS GONNA BE, THE COSTY CLAIM IS THE, UM, MV INDUSTRIAL MERCHANT SHIP THAT RAN INTO THE PIER.
UM, SO WE'RE, WE'RE HAVING TO WORK THROUGH SOME OF THAT BECAUSE OF MARITIME LAW.
THERE ARE SOME LIABILITY ON THAT FOR US.
UM, AND SO AGAIN, TWO NEW TO TELL YOU WHERE IT'S GONNA DEVELOP, BUT I DID WANNA LET Y'ALL KNOW THAT THERE ARE SOME OPEN CLAIMS OUT THERE.
AND THEN ASK IF THERE'S ANY QUESTIONS.
YOU HAVE A $50 MILLION LIMITED LIABILITY.
YOU HAVE TERRORISM COVERAGE UP TO $75 MILLION AND YOU HAVE RIGHT NOW $50 MILLION ON PROPERTY LIABILITY AND FOR PHYSICAL DAMAGE TO ANY OF YOUR FACILITIES AND ANY ONE OCCURRENCE, WE'RE GONNA GIVE YOU LIMITS TO GO UP TO ABOUT 75 MILLION JUST SO YOU CAN LOOK AT IT AND MAKE A JUDGMENT IF YOU THINK THAT'S SOMETHING WE SHOULD SPEND MONEY ON OR NOT.
UM, THIS SLIDE WOULD TELL YOU, WE GOT REALLY LUCKY WE DIDN'T HAVE A WHOLE LOT OF EVENTS GOING ON IN TEXAS AND YOU'LL NOTICE THAT NONE OF THE STATES ORDERING THE GULF HAD ANY SIGNIFICANT HURRICANE DAMAGE LAST YEAR.
LOOKING AT THE FORECAST, THEY'RE SAYING WE'RE PROBABLY GONNA GET LUCKY AT LEAST THROUGH THE MIDDLE PART OF THE SUMMER, UM, WHEN THINGS MAY START CHANGING WITH THE LA NINA EL NINO NEUTRAL TYPE OF EVENT.
UM, THIS FREEZE THAT'S AFFECTED PRETTY MUCH THE WHOLE ENTIRE COUNTRY AND WHAT DO THEY CALL IT? WINTER STORM FERN.
THEY'RE ESTIMATING A FEW BILLION DOLLARS WORTH OF LOSSES BECAUSE OF THE SUBSTANTIAL SIZE AND THE LONGEVITY OF THE COLDNESS AND THE FROST AND THE ICE AND THE SNOW ACROSS WHAT 42 STATES IS WHAT I HEARD THIS MORNING.
SO THAT'LL SHOW UP HERE NEXT YEAR FOR A 2020 $6 BILLION EVENT.
UM, BUT I WANNA GIVE YOU OPTIONS AND I WANNA MAKE SURE IT'S MEETING YOUR NEEDS.
AND SO THAT'S WHY WE COME TO YOU EARLY, AGAIN, OUR RENEWAL UNTIL MARCH.
BUT WE'LL COME BACK NEXT MONTH WITH SOME HARDER NUMBERS TO SEE IF YOU DO HAVE ANY QUESTIONS OR WANT ANY CHANGES ON YOUR INSURANCE PORTFOLIO.
SO I'LL TURN IT OVER TO Y'ALL.
UH, I'M JUST INTERESTED, UH, THE OPEN CLAIMS MM-HMM
[00:40:01]
EXPERIENCE WITH THOSE, HOW DOES THAT AFFECT OUR RATES COMING UP NEXT YEAR? YOU HAVE REALLY GREAT EXPERIENCE.THE FACT THAT WE ONLY HAVE A HANDFUL OF CLAIMS ON HERE IS REALLY, UM, AN ATTRIBUTE TO WHAT YOU'RE DOING IN YOUR RISK MANAGEMENT DEPARTMENT LAURA AND HER TEAM ARE DOING, UM, AND WHAT TONY AND HIS TEAM DO FOR Y'ALL.
UM, THIS IS NOT AFFECTING WHAT YOU'RE DOING IN A SOFT MARKET.
WE HAVE A LOT MORE LEEWAY WHEN IT COMES TO OUR CLAIMS. IF WE HAD A HARDER MARKET, I WOULD HAVE A VERY DIFFERENT ANSWER FOR YOU.
SO YOU'RE, YOU'RE SAYING, I MEAN, I, I UNDERSTAND THESE ARE JUST, UH, PRELIMINARY, BUT YOU'RE SAYING RIGHT NOW, UH, OUR, OUR RENEWAL AMOUNT WOULD BE AT THE SAME LIMITS, ROUGHLY 5 MILLION? IS THAT WHAT YOU'RE SAYING ON THIS? THIS SHEET HERE, 6 MILLION MM-HMM
AND THEN, UM, SO THEN YOU'RE SAYING THE SAME LIMITS ARE GONNA GO UP FROM 4.9 TO 6.4? YES SIR.
AND THEN IF WE WOULD DECIDE A DIFFERENT UPPER LIMITS AND WHAT ARE THOSE HIGHER LIMITS THAT YOU'RE TALKING? 75 MILLION FROM 50 TO 75 MILLION ON THE PROPERTY.
THEN THAT WILL GO UP TO 6 MILLION.
SO THAT ROUGHLY ABOUT $500,000 FOR A $25 MILLION LIMIT.
AND HOW, HOW MUCH IS OUR TOTAL PREMIUMS THAT WE'RE PAYING ANNUAL? RIGHT NOW YOU'RE PAYING 4.9 MILLION.
NOW THAT'S NOT INCLUDING THE ENDORSEMENTS THAT WE HAD ADDING ON.
THAT WAS WHERE WE WERE THIS TIME LAST YEAR WAS 4.9 MILLION.
Y'ALL DID HAVE A COUPLE OF ENDORSEMENTS THAT CAME ON WHEN YOU FINISHED, UM, THE TERMINAL 16 AND WHEN YOU FINISHED THE PARKING GARAGE.
SO THOSE WERE A SLIGHT ADDITIONAL PREMIUM.
BUT I NEED TO GIVE YOU A BASIS TO RATE ON.
SO LAST YEAR'S RENEWAL PREMIUMS CAME IN AT 4.9 MILLION, WE'RE ESTIMATING ABOUT 6.4 AGAIN BECAUSE OF THE INCREASE IN VALUE AND THE INCREASE IN REVENUE.
UM, I'M NOT GONNA GIVE YOU GREAT NEWS THAT YOUR PREMIUM'S COMING DOWN, BUT I WANT YOU TO LOOK AT THE RATE AND THE RATE'S COMING DOWN SUBSTANTIALLY.
DO YOU, DO YOU HAVE OFFHAND THE NU THE PERCENT INCREASE IN UH, VALUE AND REVENUE? OH, I DO HAVE THAT.
I WILL HAVE TO HAVE LAURA SEND THAT TO YOU.
IT'S IN THE SPREADSHEET THAT I SENT HER THAT I HID FROM THIS, BUT IT'S COULD BE CLOSE TO 20.
OH, WE INCREASED A LITTLE MORE THAN $200 MILLION.
I WANNA SAY THE TERMINAL WAS RIGHT AT ONE 40.
WASN'T THE TERMINAL? YEAH, THE TERMINAL AND THE PARKING GARAGE, UH, TOGETHER.
THEY MAY BE CLOSER TO THAT ONE 60, SOMETHING LIKE THAT.
BUT I HAVE EXACT NUMBERS FOR YOU AND ALL THE DATA THAT'S BEHIND US.
WE'LL GET A LOT OF NUMBERS NEXT TIME.
ERIC, WHILE WE'RE ON THE, THE TOPIC OF INSURANCE, I NOTICED IN THE FINANCIALS THAT THE BUDGET FOR GENERAL AND EXCESS LIABILITY WAS QUITE A BIT UNDER WHAT OUR ACTUAL WAS FOR THE YEAR.
WAS THAT BECAUSE OF THESE, UH, THE TERMINALS COMING ONLINE THAT THERE WAS AN ADDITIONAL EXPENSE? UM, NO.
IT DIDN'T AFFECT YOUR GENERAL LIABILITY.
IT AFFECTED YOUR PROPERTY INSURANCE.
SO, UM, WHAT AFFECTS YOUR GENERAL LIABILITY OR YOUR REVENUE BASIS? LOSS OF REVENUE, YOU, LOSS OF REVENUE IS TREATED LIKE A CORRECT.
OUR REVENUE WENT FROM LIKE 80 TO 112 IS OVERESTIMATING, DOES THAT MAKE, DOES THAT ANSWER YOUR QUESTION? MM-HMM
UM, BUT YOU DO HAVE GREAT NEWS.
SO YOUR EXPERIENCE MODIFIER IS COMING BACK DOWN UNDER WORKERS' COMP.
AGAIN, TESTAMENT TO WHAT LAURA AND HER TEAM ARE DOING FROM A RISK MANAGEMENT STANDPOINT.
AND THE UNDERWRITERS WERE VERY IMPRESSED WITH THE OPERATIONS OF THE COURT AND THE ABILITY TO TELL THEM THE HISTORY OF THE COURT AND WHAT YOU'RE DOING AND PLANS FOR THE FUTURE.
SO HOPEFULLY THAT WILL EQUATE TO, I THINK Y'ALL KNOW ME BY NOW.
I'M VERY CONSERVATIVE SO I'M GONNA COME BACK TO YOU WITH BETTER NUMBERS.
BUT RIGHT NOW THESE ARE THE BEST I CAN DO AND LIVE WITH MYSELF AT NIGHT.
SO I ALWAYS WANT TO GIVE Y'ALL BETTER THAN I'M PROJECTING.
THERE'S ALMOST A 30% INCREASE IN REVENUE.
MARY, DO YOU HAVE ANYTHING ELSE? ONE, ONE LAST QUESTION.
THE, THE TYPE OF BUSINESSES THAT THE PORT, UH, IS INVOLVED WITH, DOES THAT HAVE A BEARING ON OUR RACE AS AN EXAMPLE, UH, IF WE MOVE INTO LNG IN SOME WAY OR ANOTHER, DOES THAT HAVE A BEARING ON OUR LIABILITY AND
ONE OF THE THINGS THAT HELP FROM A PROPERTY STANDPOINT IS THAT LNG IS NOT AS MUCH OF A POLLUTANT EXPOSURE.
SHOULD IT BE RELEASED THEN OIL OR OTHER EXPORTS LIKE THAT? SO FROM A POLLUTION LIABILITY STANDPOINT, IT, IT ACTUALLY DECREASES THE
[00:45:01]
AMOUNT OF EXPOSURE.AND AND THOSE, THOSE WOULD BE TENANTS.
IT WOULDN'T BE A BUSINESS THAT WE OWN.
IT WOULD BE A TENANT, RIGHT? CORRECT.
I DIDN'T KNOW IF THAT HAD ANY BEARING ON THAT.
AND THEN ONE OF THE THINGS THAT LAURA AND HER DEPARTMENT DO A GREAT JOB OF IS WHEN WE LOOK AT THOSE CONTRACTS COMING BACK AND SAYING, FOR INSTANCE, I WORKED WITH TONY AND SUSAN AND THEIR OFFICE A LONG TIME ON THE BATTLESHIP TEXAS TO MAKE SURE THAT OUR TENANTS GIVE US THE LIABILITY COVERAGE THAT PROTECTS SUPPORT, RIGHT? AND MEETS THE LIMITS THAT WE'VE SET UP FOR THEM TO DO.
AND THERE WAS A LOT OF NEGOTIATIONS ON THAT AND WE HELD PRETTY FIRM THAT IT'S FINE AND GOOD WHAT YOU WANNA DO, BUT WE NEED TO PROTECT THE ASSETS OF THE BOARD AND WE NEED TO PROTECT ALL THE OTHER TENANTS OF THE BOARD.
AND UM, SO WE LOOK AT THOSE CONTRACTS, WE LOOK AT WHO YOUR TENANTS ARE AND THEIR INSURANCE REQUIREMENTS AND WE STAY PRETTY FIRM TO WHAT WE REQUIRE OUR TENANTS TO PROVIDE.
ANYBODY ELSE HAVE ANY QUESTIONS? ALRIGHT, WE'LL LOOK FORWARD TO SEEING YOU NEXT TIME.
LOOK FORWARD TO SEEING YOU NEXT MONTH.
IF Y'ALL NEED ANYTHING OR ANY CHANGES THAT YOU WANT THAT WE HAVEN'T THOUGHT ABOUT, PLEASE LAVAR AND HER TEAM, SHE AND I TALK REGULARLY AND WE'LL COME BACK NEXT MONTH WITH SOME GOOD NEWS FOR Y'ALL.
[C.1 Minutes 12-16-25]
MOVE DOWN TO GENERAL BUSINESS.THE FIRST THING THERE IS THE APPROVAL OF THE MINUTES.
EVERYBODY HAD A CHANCE TO REVIEW THE MINUTES? MAY I HAVE A MOTION? MAKE A MOTION APPROVE.
UM, I GUESS WITH THE, THAT ARE GONNA BE BOTH SO, UH, LET ME SEE.
[C.2 Public Comments]
NOW IT'S TIME FOR PUBLIC COMMENTS.WE HAVE UH, MISS O'ROURKE AND THAT'S IT.
CHARLOTTE ASKED ME TO PASS THIS OUT.
I LIVE AT 1123 CHURCH STREET IN THE EAST HISTORIC DISTRICT.
AND THAT WAS A GREAT SEGUE TALKING ABOUT LIABILITY 'CAUSE THAT'S WHAT I'D LIKE TO TALK TO YOU ABOUT TODAY.
LIABILITY IN EAST END, HISTORIC HISTORY.
IF YOU LOOK AT THE HANDOUT, I'M NOT GONNA READ IT TO YOU.
I PUT IT TOGETHER 'CAUSE I WASN'T SURE IF I WOULD GET OUT TODAY.
UH, BUT IT'S GREAT WEATHER AND WHAT I WANTED TO TALK ABOUT IS A DISCREPANCY AND I THINK IT'S A DANGEROUS DISCREPANCY ON WHAT THE CITY ALLOWS FOR ZONING, LANDMARK COMMISSION, THE COMPREHENSIVE PLAN, ALL OF THEIR PLANS AND WHAT YOU'RE CURRENTLY DOING TO THE EAST END HISTORIC DISTRICT.
AND AS YOU LOOK AT THESE NUMBERS, MOST OF THEM CAME FROM A CHATBOT.
I RAN IT THROUGH BOTH, UH, CHAT GPT AND UM, THE ONE THAT I LIKED BEST, WHICH IS GEMINI.
AND IT CAME BACK WITH NUMBERS TO ME THAT WERE STAGGERING AND THEY SAID THAT THEY GOT IT FROM YOUR CONSULTANTS.
SO THAT'S WHERE THE INFORMATION COMES FROM.
SO YOU HAVE THIS HUGE DISCREPANCY WHERE YOU'RE PROGRAMMING THE GPS TO GO THROUGH OUR EAST END NEIGHBORHOODS.
AND RIGHT NOW IT'S NOT TERRIBLE.
AND YOU CAN SEE SOME OF THE PICTURES WHERE YOU HAVE THE DANGERS OF TOURISTS WALKING DOWN THE STREET WITH A BABY AND THE LUGGAGE GOING TO 16 AND YOU SEE THE BUSES COMING BY.
AND I HAVE NO IDEA IF THE BOARD HAS DONE STUDIES ON VIBRATIONS.
'CAUSE I REMEMBER IT BEING A BIG ISSUE WHEN I WAS ON THE WARS BOARD IN ABOUT 2002 AND WE HAD ISSUES WITH THE DOWNTOWN BUILDINGS AND THE SHIPS.
SO I WOULD LIKE TO KNOW IF YOU WOULD DO THAT FOR THE EAST END, THAT YOU CHECK THAT OUT AND MAKE SURE YOU'RE NOT DOING STRUCTURAL DAMAGE.
UM, BECAUSE THAT'S A REQUIREMENT WHEN YOU RECEIVE FEDERAL MONEY IN, IN THE HISTORIC DISTRICT.
AND SO I'VE CALLED LANDMARK AND A LOT OF THE OTHER AREAS AT THE CITY AND THEY HAD NO CLUE THAT YOU'RE RUNNING ALL THIS TRAFFIC AND PLANNING ON RUNNING ALL THIS TRAFFIC DOWN 16TH, 14TH, AND 12TH AS AN OVERFLOW.
AND SO I WANTED TO BRING THAT TO YOUR ATTENTION AND TELL YOU, PLEASE HELP THINK ABOUT IF YOU WOKE UP ONE MORNING AND ALL OF A SUDDEN YOU HAVE TRAFFIC, CRUISE TRAFFIC GOING THROUGH YOUR NEIGHBORHOOD, WHAT YOU WOULD THINK ABOUT IT.
SO I CAN BE WALKING DOWN THE STREET TO THE PARK AND ALL OF A SUDDEN THE TRAFFIC WILL COME AND IT'S THE BUSES THAT I HAVE CONCERN WITH BECAUSE WHEN YOU'RE STANDING ON THE STREET, YOU FEEL THE BUS COME AND OUR STREETS DON'T HAVE, UH, THE CAPACITY TO HANDLE THAT KIND OF TRAFFIC.
[00:50:01]
CORNER STREETS ARE DEFICIENT FOR A DA COMPLIANCE IN THE EAST END.AND I'M NOT SURE HOW THIS HAPPENED, WHY IT HAPPENED, BUT YOU DEFINITELY NEED TO FIX IT.
AND IT LOOKS LIKE WAYS CAN BE PROGRAMMED THAT YOU CAN PUT A GEOFENCE AROUND THE EAST END SO THEY'RE NOT COMING THROUGH THERE.
I UNDERSTAND YOU PROBABLY WANT THEM TO COME THROUGH THERE BECAUSE YOU'RE DRIVING 'EM STRAIGHT TO YOUR GARAGE AND YOU WANNA MAKE THE MONEY.
BUT THAT'S NOT WHAT WAS SUPPOSED TO HAPPEN WITH YOUR MASTER PLAN.
YOU WERE SUPPOSED TO BE GOING DOWN OUR SIDE AND TURNING AT THE APPROPRIATE SPOT FOR BOTH 14 AND 16.
I APPRECIATE YOU LOOKING INTO IT AND HELP.
ALRIGHT, THREE MINUTES WE'RE OKAY TO MOVE ON? YES.
[D.1 CFO REPORT/CONSENTAGENDA]
UH, WE'RE GONNA GO NOW TO THE BUSINESS ITEMS. UH, SO LET'S MARK, IF YOU WOULD THE CFO REPORT CONSENT AGENDA.OKAY, WELL WE REACHED THE END OF THE YEAR AND UH, IF THE REPORT WE'RE GIVING IS PRE-AUDIT, THERE WILL BE SOME CHANGES TO THE FINANCIALS FOR THE AUDIT.
FOR EXAMPLE, DEFERRED INFLOWS AND OUTFLOWS.
WE CAN'T DO THOSE UNTIL, UM, AFTER NYHART FINISHES THE PENSION SUBSIDY.
UM, THEN WE'LL HAVE TO, WE'LL HAVE TO MAKE AN ADJUSTMENT THERE.
WE HAVE GONE THROUGH AND RACKED OUR BRAINS TO SEE IF WE COULD IDENTIFY ANY OTHER CHANGES THAT MAY OCCUR OTHER THAN MAYBE SOME ADJUSTMENTS TO ACCRUALS AS ACTUAL INVOICES COME IN INSTEAD OF WHAT OUR ESTIMATED AMOUNTS WERE.
WE HAVE NOT IDENTIFIED ANY, I BELIEVE WE'VE CAPTURED EVERYTHING.
UH, MAJOR SIGNIFICANCE, UH, IN OUR YEAR END NUMBERS.
OF COURSE THAT MAKES DECEMBER LOOK A LITTLE SKEWED BECAUSE WE DID HAVE SOME YEAR END ADJUSTMENTS THAT WE HAVE TO MAKE EACH YEAR.
SO RATHER THAN GO THROUGH THE MONTH OF DECEMBER, IF IT'S OKAY WITH Y'ALL, I'M JUST GONNA JUMP RIGHT INTO YEAR END AND Y'ALL HAVE GIVE ME MY VOICES COMING AND GOING WITH THIS, WITH THE WEATHER.
OUR YEAR TO DATE NET INCOME WAS 58.3 MILLION.
THAT IS BOTTOM LINE NET INCOME.
UM, AFTER, OKAY, I WAS MAKING SURE I WAS ON THE RIGHT PAGE TOO.
WE'RE ONLY 400,000 UNDER OUR BUDGET FOR THE YEAR WITH 26.3 MILLION OVER PRIOR YEAR RESULTS.
UM, OPERATING REVENUES 87.3 MILLION OR 4.2 MILLION OVER BUDGET.
THAT'S REALLY, UH, WHAT'S DRIVING THAT IS THE CRUISE INDUSTRY.
PASSENGER SERVICE CHARGES UP 3.3, PARKING UP 2.8.
WARPAGE IS UP THREE NOW LAY DOCKAGE WAS DOWN.
WELL LAY DOCKAGE WAS DOWN 'CAUSE WE WERE, WE WERE DOING WORK ON THE PIERS AND WE DIDN'T HAVE, WELL, THE DOCKS AND WE DIDN'T HAVE THE DOCK SPACE TO COVER THE LAKE.
RAIL IS ALMOST NONEXISTENT AND THE REST IS ALL, UH, JUST MISCELLANEOUS STUFF.
OUR OPERATING EXPENSES BEFORE DEPRECIATION ARE 700,000 OVER BUDGET.
NOW INSURANCE WAS OUT WAS 670,000 OVER BUDGET FOR THE YEAR.
AND WE'RE TALKING ABOUT BUDGET.
UM, SO THERE WAS AN INCREASE LAST YEAR.
OUR, UH, RENTAL EXPENSE WAS UP 300 AND, UH, 37,000.
AND, UM, EVERYTHING ELSE WAS RUNNING FAIRLY CLOSE.
A NON-OPERATING INCOME THAT'S UNDER 11 MILLION UNDER BUDGET.
THAT'S REALLY DRIVEN BY, UH, THE TIMING OF WHEN WE THOUGHT GRANTS WOULD BE COMPLETED AND WHEN THEY ACTUALLY ARE GETTING COMPLETED.
SO IT'S NOT THAT WE'RE NOT GONNA HAVE IT, WE'RE JUST DIDN'T GET IT IN 2025 ON OPERATING EXPENSES OR WE'RE 6.7 MILLION UNDER BUDGET.
[00:55:02]
A BIG DRIVER ON THAT WAS THE, UH, RECOVERY RESTITUTION RELATED TO HURRICANE IKE.UH, THAT WAS, THAT'S REALLY BEEN THE BIG DRIVER.
WE, WE ARE REDUCING THE LIABILITY WE HAVE ON THE BALANCE SHEET AND WE'RE HAVING TO RECOGNIZE THE, UH, REDUCTION OF EXPENSE.
IN ESSENCE, IT'S RAISING THE REVENUE.
UM, QUESTIONS ON THIS? OKAY, UH, HERE'S A BREAKDOWN OF THE, UH, WHAT WE'RE TALKING ABOUT.
UH, ONE OF THE INCOMES, ONE OF THE LINES I LIKE TO WATCH IS THE NET OPERATING INCOME, ACTIVE DEPRECIATION.
NOW DEPRECIATION IN DECEMBER STEPPED UP BECAUSE WE BROUGHT THE CRUISE TERMINAL ONLINE AND STARTED RECOGNIZING DEPRECIATION ON THE CT 16 AND THE, UH, RELATED GARAGE, OUR OPERATING INCOME WAS 32.6 MILLION COMPARED TO A BUDGET OF 28.8 MILLION.
THAT'S, UM, AND UH, PRIOR YEAR WAS 29 MILLION.
SO WE'RE STILL UP FROM PRIOR YEAR ABOUT 12%, 13% OVER WHAT WE HAD IN THE BUDGET.
ON INCOME FROM OPERATIONS AFTER DEPRECIATION OR YES, SIR.
COULD, UH, ARE, DID, DID, DID I UNDERSTAND YOU TO SAY THAT YOU DID HAVE THE DEPRECIATION IN HERE FOR CT 16? ONE MONTH.
BECAUSE WE, THEY WERE TRAIL, YOU KNOW, IT APPLIED IN NOVEMBER, BUT IT, THEY'RE STILL, WE'RE STILL PROCESSING INVOICES.
DO YOU KNOW OFFHAND WHAT THE, HOW MUCH CT 16 AND GARAGE WILL INCREASE OUR OVERALL DEPRECIATION? ROBERT, YOU HAVE THAT? I DO NOT HAVE IT OFF THE TOP OF HEAD, BUT I WE'LL FIND OUT.
TALKING SEVEN, SEVEN TO 10 MILLION, SOMETHING LIKE THAT PROBABLY.
OH, IT'S, UH, DIFFERENT PARTS OF THAT PROJECT HAVE DIFFERENT LIVES.
I WAS JUST GUESSING I WASN'T TRYING TO GET
WE'LL, WE'LL HAVE IT, WE'LL HAVE IT DONE HERE, JUST THANK YOU.
UM, BUT IT'S ONLY A, WE ONLY HAVE A MONTH'S WORTH.
OTHER QUESTIONS THAT, THAT'S ALRIGHT.
THE FINANCIAL REVENUES YEAR TO DATE, UH, HERE AGAIN, YOU CAN SEE THAT, UH, THE CREWS AND PARKING WERE UP SIGNIFICANTLY.
DOLLAR WA AND ACTUALLY IT'S A LITTLE EASIER TO SEE IN THE GRAPHIC POINT AS FAR AS WHAT'S MAKING UP OUR INCOME YEAR TO DATE REVENUES.
SO, UH, THE NON-OPERATING INCOME THAT WAS RELATED TO THE GRANTS INTEREST AND, UM, OF MISCELLANEOUS NON OPERATING ITEMS AND IN THE HEIGHT RECOVERY.
AND THAT'S A YEAR PICTURE, THAT'S A YEAR TO DATE.
THAT'S, THAT'S FOR, THAT'S UNAUDITED YEAR TO DATE REVENUES.
SO UNLESS, UNLESS WE SPEND, UH, A LOT OF GRANT MONEY THIS YEAR, THAT'LL, THAT'LL PROBABLY BE, BE A SMALLER PIECE OF PIE NEXT YEAR.
IT, I ANTICIPATE THAT THAT PORTION BEING SMALLER GOT IT.
BECAUSE THAT WOULD KEEP IN MIND THAT INCLUDES, UH, THE IKE RECOVER.
WELL IT ALSO INCLUDES, I GUESS WHAT, WHAT, WHERE WE ARE SO FAR ON THE WEST, ON WEST BRANCH.
I THINK YOU, YOU KNOW, THE IKE RECOVERY IS NOT CASH BASICALLY.
I MEAN THOSE ARE JUST BOOK ENTRIES.
LET'S TAKE A LOOK AT THE EXPENSES FOR THE YEAR.
UM, STILL OPERATING EXPENSES WERE, UH, 54 MILLION.
WERE ACTUALLY SIX TENTHS OF A PERCENT OVER WHAT WE HAD BUDGETED.
WE'RE 8.9% HIGHER THAN LAST YEAR.
WE'VE GROWN, WE'VE INCURRED NEW EXPENSES.
OTHER, UH, A COUPLE OF THINGS PEOPLE Y'ALL HAVE ASKED ABOUT IN THE PAST, WHAT'S IN OTHER CONTRACT SERVICES? IT IS MAINLY, UM, CONTRACT POLICE AND SHUTTLE SERVICES IS IN THERE.
AND IN THE OTHER OPERATING, Y'ALL HAVE ASKED ABOUT THAT SEVERAL TIMES.
THAT'S UTILITIES, PROPERTY INSURANCE, UH, SALES AND MARKETING AND COST OF SOFTWARE.
[01:00:01]
ANNUAL COST OF SOFTWARE.UM, AND IF YOU WANT TO SEE THE DETAILS, YOU CAN GO TO TAB TWO AND LOOK AT THE, UH, WHAT WE CALL THE BLUE SHEETS BEHIND THE VERBIAGE.
UH, EXPLAIN GOING INTO MORE DETAIL ON THE VARIANCES.
IS THAT TERM OTHER CONTRACTED SERVICES? IS THAT A TERM THAT, IS THAT A TERM OF ART FOR THIS FINANCIAL STATEMENT OR COULD YOU JUST SAY CONTRACTED SERVICES? WE COULD SAY THAT'S JUST WHAT WE'VE USED.
BUT, BUT IT DOESN'T, I MEAN, I GUESS WHAT IT INFERS TO ME IS THAT THERE'S OTHER CONTRACTED SERVICES SOMEWHERE AND THERE'S NOT RIGHT.
THERE'S NOT CON CONTRACTED SERVICES ARE ALL IN THAT LINE TOGETHER.
BUT THE PREDOMINANTLY, WE MAY HAVE SOME SCATTERED AROUND ANOTHER AREA.
FOR EXAMPLE, YOU HAVE PROFESSIONAL SERVICES THAT WILL FALL INTO ANOTHER CATEGORY.
UM, BUT THERE ARE, THERE AGAIN, THE WAY WE HAVE 'EM GROUPED, WE HAVE OTHER CONTRACT SERVICES.
WE LITERALLY, THE MAJOR ITEMS ARE SECURITY AND POLICE.
THE, THE, THE CONTRACT POLICE OFFICERS AND UH, THE SHUTTLES, THE SHUTTLE.
AND THEN WE HAD ABOUT A MILLION.
AND ACTUALLY THE SHUTTLES IS THE ALL COUNTY LEGAL ACCOUNTING, ALL THAT BE THERE TOO.
AND THE, AND THE MILLION, UH, OTHER CONTRACT SERVICES WOULD BE ACCOUNTING FOR THE, UH, AUDIT SERVICES.
THE LEGAL SERVICES, UM, WILL BE IN THERE.
BUT THERE AGAIN, THE BULK OF IT, THE VAST MAJORITY OF 5 MILLION OF THAT 7 MILLION IS, UH, SHUTTLES.
ANY QUESTIONS ON THIS? ALRIGHT, HERE IT IS GRAPHICALLY.
AND YOU SEE OUR, OUR TWO BIGGEST COST THAT WE HAVE ARE EMPLOYEES RELATED, COST TO THE EMPLOYEES, AND THEN DEPRECIATION.
NOW THIS IS THE PRODUCT LINE SUMMARY HERE.
AGAIN, LOOKING AT THE FOUR, UH, ALLOCATIONS AND, AND DEPRECIATION, YOU CAN SEE WHAT THE CONTRIBUTION IS FOR THE VARIOUS LINES OF BUSINESS.
YOU CAN SEE THE CREWS AND PARKING ARE HAVING, AND GROUND TRANSPORTATION ALL LUMPED TOGETHER.
THESE CREWS RELATED IS THE, THE LION'S SHARE TRAVEL TRAINING AND DEVELOPMENT FOR HUNDRED 68,000 UNDER BUDGET.
AND, UH, WE JUST, WE DIDN'T TRAVEL AS MUCH AS WE HAD ANTICIPATED.
UM, AND THEN WE'RE FINDING WE'RE DOING MORE TRAINING ONLINE THAN, UH, THAN A LOT OF IT, IT DOESN'T REQUIRE TRAVEL THAT WE ANTICIPATE.
MARK, BEFORE WE GET TOO FAR AWAY FROM IT, I'D LIKE TO ASK YOU A QUESTION SURE.
UM, WE ALLOCATE ALL HUMAN RESOURCE COSTS TO THE DIFFERENT AREAS.
PARTICULARLY I'M THINKING OF HEALTH INSURANCE, OTHER STUFF LIKE THAT.
SO YES, THAT'S FOLLOW THAT FOLLOWS THE EMPLOYEES.
AND THEN WHEN YOU LOOK AT THE PRODUCT LINE, FOR EXAMPLE, UH, A LOT OF THE EMPLOYEES FALL INTO THE MISCELLANEOUS CATEGORY AND THEN THEY'RE ALLOCATED ACROSS CERTAIN, CERTAIN, UM, EMPLOYEES, FOR EXAMPLE, THOSE RELATED TO CREWS OR WE'RE ABLE TO TRACK THOSE DIRECTLY.
UH, BUT WHEN YOU GET TO POLICE, CNN, THAT'S WHAT WE'RE TRYING TO GET TO WITH THIS, UH, FIELD SERVICE MANAGEMENT SOFTWARE THAT WE'RE ABOUT TO RIGHT, RIGHT.
TRYING TO GET TO WHERE WE CAN DROP THE ALLOCATION THAT GOES IN.
WE'RE, WE'RE IMPLEMENTING THAT, UH, IN THE FIRST QUARTER.
SORRY, I DIDN'T MEAN TO GET YOU OFF.
[01:05:01]
UH, LEGALLY RESTRICTED IS 40.3 MILLION AT THE END OF THE YEAR.THEN WE HAVE, UH, UNRESTRICTED OF 24 MILLION AND INTERNALLY RESTRICTED OF 12 MILLION.
INTERNALLY RESTRICTED IS LEGALLY UNRESTRICTED ALONG WITH THE UNRESTRICTED.
SO, UH, ON OUR FINANCIAL STATEMENTS, WE'LL HAVE 36 MILLION UNRESTRICTED.
THE VENDOR REGISTER, UH, LOCAL VENDORS, THE LOCAL VENDORS ARE VENDORS WHO, WE HAVE AN ADDRESS HERE LOCALLY.
THEY CONSIDER, UH, LOCAL VENDORS.
THEY'RE, UH, 1.5 MILLION OR 15% OF ORDINARY PAYMENTS, NON NON-OPERATING VENDORS.
THERE WAS A QUESTION ABOUT THAT.
WHAT ARE NON-OPERATING VENDORS? ONE OF THE MAJOR NON-OPERATING VENDORS IS DEBT SERVICE.
SO, UM, AND LET'S SEE IF WE LOOK AT TAB, YOU'RE TALKING ABOUT PAYMENTS ON THE DEBT SERVICE? YEAH.
LET, LEMME GET OVER HERE AND MAKE SURE I'M NOT, AND THERE'S A SCHEDULE AND I WAS TRYING TO HAD IT MARKED ON THE TAB, UH, ANYWAY, DON'T YOU SHOW THAT ON YOUR CASH FLOW SCHEDULE UP HERE.
IT ACTUALLY, THERE'S A LIST OF, UM, OF VENDORS.
THIS ON THE CASH FLOW STATEMENT.
UM, I HAVE, I ACTUALLY HAVE A LIST OF VENDORS WHO, WHO MAKE THAT UP, THAT PORTION.
AND, UH, I'LL, I'LL FIND THAT IN A MINUTE.
Y'ALL KNOW WHERE IT'S, BUT GOING BACK OVER 90 DAYS, THOSE VENDORS THAT WERE OVER 90 DAYS AT THE END OF THE YEAR, WE'VE REDUCED THAT, UM, BALANCE, UH, 205,000 DOWN TO 112.
IT'S PREDOMINANTLY THREE VENDORS AND, UM, WE'RE WORKING ON COLLECTING THOSE IN OUR CASH.
THIS, THIS SHOWS YOU WHERE WE ARE IN CASH POSITION.
ONE OF THE QUESTIONS THAT'S COME UP OVER THE PAST IS, DO WE HAVE ENOUGH CASH TO COVER OUR REMAINING COMMITTED BALANCES? OUR APPROVED COMMITTED BALANCE IS 25.2, OUR INTERNALLY RESTRICTED IS 6 MILLION.
SO YES, WE HAVE AMPLE MONEY TO COVER OUR RESTRICTED BALANCES STAFFING LEVELS.
END OF THE YEAR WE HAD 139 EMPLOYEES HERE AT THE FOURTH, WE HAD BUDGETED 144.
WE'RE FIVE UNDER, WE'RE FIVE UNDER BUDGET LAST YEAR.
AT THE SAME TIME WE HAD 126 EMPLOYEES COMPARED TO THE 139 THAT WE HAVE EMPLOYED TODAY ON THAT DATE.
YOU GUYS, I THINK DID A, DID A PRETTY GOOD JOB OF KEEPING UP WITH THE HIRING.
AGAIN, OBVIOUSLY YOU GOT ATTRITIONS AND YOU GOT RETIREMENTS, BUT I THINK YOU GUYS OVERALL DID A PRETTY GOOD JOB OF KEEPING UP WITH THE HIRING.
LAST YEAR WAS ONE OF THE BETTER YEARS OF BRINGING, BRINGING ON PEOPLE, WHICH IS KIND OF THE CORE.
WITHOUT THE PEOPLE, WE DON'T GET THE WORK DONE.
OKAY, MAYOR, I STOLE 3 MILLION.
AND I THINK WE PROGRAMMED 3.5 IN OUR BUDGET CURRENTLY FOR 26.
MR. MAYOR, I WON'T HAVE TO DO VIC'S JOB OF PRO READINESS OUT SINCE I DON'T THINK PART OF THAT, THIS MATH, EVEN AN AGGIE ENGINEER CAN DO THIS ONE.
WE'VE GOT, IT'S THE END OF THE YEAR ALREADY, RIGHT? EXACTLY.
BUT IN JANUARY WE'RE PROBABLY PAY 26.
IS THIS ONLY, IT'S ONLY A MONTH OF CT 16.
SO YOU, YOU'RE GONNA SEE AN YOU, YOU, YOU SHOULD SEE 3.5 EASY.
[01:10:02]
OKAY.AND THEN, THEN THE DOCKET DISCOUNTS.
UM, DOES ANYONE HAVE ANY QUESTIONS? ALRIGHT HERE.
UM, THEN THE NEXT ITEM WE HAVE IS, UM, MASTER PLAN.
SO WHAT WE, WHAT WE'RE GONNA DO HERE ON THE MASTER PLAN, WE, WE GAVE YOU, UM, A SCHEDULE LAST MEETING OF THE NEW MASTER PLAN ITEMS. AND, UH, YOU KNOW THAT THIS WAS WHAT VA PREPARED.
AND SO WHAT WE SPENT OVER THE LAST MONTH DOING IS REVIEWING THOSE SCHEDULES AND COMBINING THEM WITH, UH, THE OLD, IN OTHER WORDS.
SO WHAT, WHAT WE, WHAT WE'RE HOPING TO DO IS TO HAVE A, UM, SPECIAL MEETING IN A COUPLE OF WEEKS TO, TO FOCUS STRICTLY ON THE MASTER PLAN.
BUT TODAY WE'RE GONNA GO OVER A HIGH LEVEL OF TAKING INTO ACCOUNT WHAT THE MASTER PLAN SHOWED BEFORE, UM, OUR LAST MASTER PLAN, THERE WERE STILL PROJECTS CARRYING OVER.
SO WHAT WE WANTED TO MAKE SURE THERE WAS NO DUPLICATIONS.
SO WHAT WE WENT THROUGH ON A PRETTY, PRETTY DETAILED BASIS IS THE COMBINATION OF WHAT WAS LEFT FROM THE EARLIER MA MASTER PLAN, THE, UM, REDUCTION OR THE ELIMINATION OF PROJECTS THAT WERE COMPLETED FROM, FROM THE 2018 PLAN, AND THEN WHAT YOU SAW ON THE NEW SCHEDULES.
SO WHAT WE'RE HOPING TO SHOW TODAY IS A HIGH LEVEL PICTURE OF WHERE WE ARE ON THE NEW MASTER PLAN CAPITAL PROJECTS SHEETS.
THAT'S WHAT WE'RE, THAT'S WHERE WE'RE STARTING THIS PROCESS RIGHT HERE.
AND I DON'T KNOW IF, ROBERT, ARE YOU GONNA DO THAT? OR ME AND JEFF? YES.
SO WHILE Y'ALL WALKING UP HERE, WHAT WE HAVE IN THE, IN THE BOARD BOOK RIGHT NOW IS THE FORMAT YOU'RE USED TO SEEING THIS IS, DOES NOT HAVE THE NEW MASTER PLAN PROJECTS IN IT.
SO JEFF AND ROBERT ARE GONNA GO THROUGH WALKING Y'ALL THROUGH THESE PROJECTS AND ON INTO THE NEW MASTER PLAN, MASTER PLAN IN THE, UH, THE NEW SCHEDULE, OBVIOUSLY, AND YOU SAW THIS ON THE SCHEDULE WE GAVE OUT FIVE TIMES WE'RE, YOU KNOW, WE'RE OVER $2 BILLION OVER 20 YEARS.
WE, HERE, AGAIN, LIKE THE MASTER PLAN OF 2018.
UM, WE'VE GOT PROJECTS ON HERE THAT, UH, ARE WISHLIST PROJECTS.
UM, AND THIS IS WHAT WE'RE HOPING TO SIFT THROUGH, NOT NECESSARILY TODAY, BUT IN A SPECIAL MEETING, UM, WHERE YOU KNOW THAT THERE'S AN OPPORTUNITY FOR EVERYONE JUST TO LOOK AT IT AND SAY, HEY, WE DON'T THINK THAT'S GONNA HAPPEN IN 20 YEARS, OR, UM, ITEMS LIKE THAT.
THEN WE'LL HAVE THAT DISCUSSION AND HOPEFULLY, UH, WE'RE GETTING CLOSE TO, UM, YOU KNOW, A MASTER PLAN APPROVAL OF THE NEW APPROVAL.
SO WHAT WE'RE HOPING, WHAT WE'LL DO AT THE SPECIAL MEETING THAT WE HAVE, WHICH WILL STRICTLY FOCUS ON THE MASTER PLAN BA WILL BE HERE TO GO OVER DETAILS ON THAT.
AND, UM, AND FURTHER, AND BA HAS THIS NEW, THIS REWORK THAT WE'VE DONE INTERNALLY, UM, IN TERMS OF, UH, WHAT THE NEW MASTER PLAN HAS IN IT FROM A CAPITAL CLASS.
YOU KNOW, HERE AGAIN, UM, OBVIOUSLY IT'S A BIG NUMBER.
UM, WE PROBABLY WON'T ACHIEVE THAT IN 20 YEARS, BUT, UM, YOU KNOW, WE HAVE TO THINK AHEAD, SO YOU GUYS WILL TAKE IT OVER.
UM, SO, SO WHAT WE, UH, HAVE IS IN YOUR BOARD BOOK, UH, YOU HAVE THE, THE CURRENT MASTER PLAN.
AND WHAT WE HAVE UP ON THE SCREEN HERE, AND WE CAN PRINT OFF COPIES FOR Y'ALL IF Y'ALL WOULD LIKE, BUT TO, TO WALK THROUGH WHICH ITEMS, UH, ARE STILL KIND OF ACTIVE IN OUR EXISTING MASTER PLAN.
AND THE CAPITAL BALANCES NEED TO BE TRANSFERRED OVER WHICH PROJECTS ARE STILL APPLICABLE AND NEED TO BE TRANSFERRED OVER IF THEY WEREN'T EXPLICITLY LISTED IN, IN THE MASTER PLAN.
UM, AND, UH, AND THEN WHICH ONES ARE PROBABLY NOT SO APPLICABLE ANYMORE, AND WE'LL JUST KIND OF RETIRE
[01:15:01]
THEM OFF OF THIS SHEET.AND, UH, THEY WON'T BE IN THE NEW MASTER PLAN.
WE'RE TRANSITIONING, BASICALLY UNDERSTAND TRANSITIONING FROM THE OLD MASTER PLAN TO THE NEW MASTER PLAN BASED UPON VA RECOMMENDATIONS, CAPITAL PROJECTS.
AND THE 10,000 FOOT SUMMARY IS THIS.
WE'RE NOT REALLY TAKING OFF A LOT.
AND A LOT OF PROJECT TRANSFER HAPPENED ON THE WEST END.
WE HAVE KIND OF ALREADY DEVELOPED A PROGRAM OF DOING PAVEMENT IN CERTAIN AREAS AND IMPROVING AREAS, AND A LOT OF THAT GETS TRANSFERRED OVER.
AND THAT'S KIND OF WHAT YOU'LL SEE AS WE WALK THROUGH.
UM, THE, THE FIRST SECTION WE CAN LOOK AT HERE IS THE EAST END ZERO TO FIVE YEAR SECTION.
AND REALLY THAT WHOLE AREA, WE COMPLETED ALL OF THE PROJECTS OR, OR ARE GOING TO COMPLETE IN THIS YEAR.
AND SO WHAT WE'RE JUST, UH, DOING IN THAT AREA IS, IS CAP, UH, TRANSFERRING THOSE CAPITAL BALANCES OVER.
AND, AND ACTUALLY ONE MORE ORIENTATION PIECE IS, IS ROBERT PASSED OUT THIS SHEET, UH, WHICH, WHICH TOOK, UM, WHAT YOU HAD FROM DECEMBER, AND THEN IT HAS IN IT ALSO THE HIGHLIGHTED BLUE ITEMS, WHICH ARE THE ONES THAT WERE BASICALLY THE HIGHLIGHTED BLUE ONES AND THE GREEN ONES ON THIS SHEET ARE, ARE KIND OF MATCHING OVER.
SO JUST TRYING TO BE TRANSPARENT ON, ON WHERE THINGS ARE MOVING.
SO, SO IN THE EAST END, UH, ALL THE CRUISE FROM OH 16 PROJECTS THAT ARE, UH, WRAPPING UP, UH, AND KIND OF PAYING UP THE BALANCES THIS YEAR, ALL THOSE CAPITAL BALANCES WILL BE TRANSFERRED OVER AND YOU'LL SEE THOSE ON THE EASTPORT SECTION.
UH, WE'VE GOT THE CRUISE TON PARKING GARAGE THAT WAS LISTED IN THE EXISTING MASTER PLAN.
UM, THAT THE NEW MASTER PLAN DOESN'T SAY, UH, THAT WE'RE BUILDING A, A CRUISE TERMINAL 10, BUT IT DOES SHOW A CRUISE TERMINAL 14 GARAGE, WHICH WOULD IN FACT SERVE SERVICE BOTH CRUISE TERMINAL 10 AND CRUISE TERMINAL 14.
SO WE, SO THAT ONE WAS ALREADY IN THE PROJECTS PROPOSED.
THE COMMERCIAL DEVELOPMENT PARCELS, UH, THESE PRIMARILY SHOW UP IN, UH, IN, IN THE MASTER PLAN STILL THEY'RE PROJECT EP ONE ON THE NEW MASTER PLAN, BUT THEY ALSO HAVE SOME ADDITIONAL WORK IN EP SEVEN.
UM, THE MARINA VILLAGE DEVELOPMENT, UH, THAT ONE IS THE BOTTOM HERE.
I GUESS THE NU SO THE NU YOU'RE KIND OF CHANGING NUMBERS.
THE NUMBERING IS NOT THE, THE NUMBERING IS, YEAH.
SO, SO, SO THAT'S ONE OF THE THINGS IS ON THIS SHEET WE HAVE OUR OLD NUMBERING AND BA HAD STARTED A NEW NUMBERING SYSTEM, AND THEN WE'RE TRANSFERRING OVER SOME PROJECTS.
AND SO THOSE WILL HAVE TO ALSO GET NEW NUMBERS.
SO THE NUMBERS WILL BE CHANGING, BUT THIS IS KIND OF THE REFERENCE SHEET TO KEEP TRACK OF WHERE THEY ARE AND WHERE THEY WENT.
AND LIKE I SAID, I, I'LL WE'LL GET YOU A COPY OF ROSE.
CLOUD CLARIFY AGAIN, THE ZERO TO FIVE AND WHY THE CT 16 IS STILL SHOWING UP WITH SUCH A BIG NUMBER ON IT.
IT'S, UM, MAJORITY OF IT'S, UH, RETAINAGE WE STOLE OWE ABOUT $6 MILLION RETAINAGE.
UH, SOME OF IT THIS REFLECTS CASH BALANCES.
UH, THIS IS HOW MUCH CASH WE HAVE REMAINING THAT WE HAVE TO PAY, UH, WHICH IS 6 MILLION IS RETAINAGE, AND THEN WE HAVE TRAILING COSTS OF ABOUT ANOTHER SEVEN OR $8 MILLION ALONG WITH IT.
AND SO, SO THE, THE, AND TO CLARIFY WHAT, UH, ROGER, UH, ROBERT MENTIONED THESE COSTS, YOU SEE ON THIS, THIS SHEET UP ON THE SCREEN, THEY ARE THE TOTAL PROJECT COST, WHEREAS IF YOU LOOK IN THE BOOK, YOU'LL SEE, UH, IN THAT MASTER PLAN SHEET IN THE 2026 COLUMNS, THOSE ARE THE, THE, THE BALANCES THAT GET TRANSFERRED OVER TO THIS PLAN SHEET.
UM, THE, THE, THE MARINE OF DEVELOPMENT, UH, THAT WAS KIND OF, THAT WAS WHAT WAS GONNA HAPPEN WITH THE PIER 14 AREA, UH, IN GENERAL.
BUT, BUT IN THE NEW MASTER PLAN, IT REALLY KIND OF SHOWS UP AS TWO SEPARATE PROJECTS.
BUT THAT'S THE MAR OF DEVELOPMENT'S REALLY NOT A CONCEPT THEY'RE SHOWING ANYMORE.
IT'S THE, THE USS TEXAS, THE MARITIME PARK AND THE CRUISE TERMINAL DEVELOPMENT ALONG WITH THE DEVELOPMENT PARTIAL.
SO, SO THAT'S ONE OF THE PROJECTS WE WERE SHOWING THAT'S NOT GONNA BE IN THE MASTER PLAN OR NOT BEING TRANSFERRED OVER MASTER PLAN.
AND THEN JOHN, GO FORWARD THAT THE NEXT ONE WE HAD ADDED, UH, THE PORT OFFICES IS, UH, I THINK IN ABOUT A YEAR AGO TO, TO THE MASTER PLAN PROJECTS.
THIS DID MAKE IT INTO THE MASTER PLAN.
IT'S, IT'S, UH, INSTEAD OF BEING E EASTPORT 15, THE MASTER PLAN SHOWING IT IN WESTPORT, AND IT'S SHOWING WP 30, SO SURE, SURE.
IF YOU GO BACK TO THE VERY FIRST SCHEDULE MM-HMM
ALL THOSE ITEMS WITH THE EXCEPTION OF THE ONE IN INC ARE CARRIED FORWARD TO THE NEW MASTER PLAN, IS THAT WHAT YOU'RE SAYING? CORRECT.
AND WHILE, WHILE THE 16 WORK IS BEING WRAPPED UP IN ORDER TO KIND OF, I THINK THE MAIN REASON WE'RE MOVING THOSE BALANCES FORWARD
[01:20:01]
IS SO WE CAN LOOK HOLISTICALLY AT KIND OF AS WE'VE DEVELOPED THIS WITH THE SPIN WRAP UP THIS YEAR AND MOVE NEXT YEAR.UM, ROGER, THE POTENTIAL FOR CRUISE TERMINAL FIVE, IS THAT REFLECTED IN HERE? YES.
WHERE, WHERE IS THAT? THE, UH, IT, IT'S IN THE SHEET THAT YOU HAVE IN FRONT OF YOU.
THEY EASTPORT AS, UH, 14 CRUISE FROM THE 14 PARKING GARAGE.
SO BECAUSE IT'S, IT COULD BE 2, 1, 4, 5.
THIS MAKES MORE, BUT THAT, THAT, THAT WOULDN'T BE OUR COST, WOULD IT? NO, THESE COSTS ON THE SHEET THAT ROBERT HANDED OUT ARE TOTAL PROJECT COST.
AND THAT'S GONNA BE, YOU WANNA TALK ABOUT YES.
LIKE WHEN NEXT YOU CAN SEE THE NEXT OBSERVATION OF THIS, UH, SHEET.
IT'LL BE BROKEN DOWN, LIKE THE ONE YOU CURRENTLY SEE WHO'S FUNDING THE PAYMENT, WHETHER IT'S OPERATIONS, THIS IS JUST DEBT GRANT.
AND THEN WE'LL ADD, PROBABLY ADD ANOTHER COLUMN, FUNDING OTHER, WHICH IS A THIRD PARTY THAT WILL BE FUNDING, UH, THE PROJECT.
LIKE I SAID, WE'RE, WE'RE, AND IT'S COMPLICATED, BUT WE'RE TRYING TO TRANSITION THE OLD AND NEW, AND THEN WE WILL GO IN AND, AND YOU'LL SEE A FAMILIAR, UM, CAPITAL PROJECT SHEET THAT SHOWS, UM, WHERE THE MONEY'S COME FROM, EITHER OPERATIONS, BORROWINGS GRANTS OR ANYTHING LIKE THAT.
BUT WHAT WE GOT BEFORE WE DO ALL THAT, WE WANT TO GET EVERYBODY UNDER, WE WANT YOUR APPROVAL ON WHAT IS GOING TO BE IN THIS MASTER PLAN BEFORE WE START WORRYING ABOUT WHERE IT'S GONNA COME FROM.
WE CAN TALK ABOUT THIS PROBABLY AT THE REGULAR, AT THE, AT THE NEXT MEETING, YOU KNOW, BUT MIKE, I JUST WANT TO MAKE SURE THAT YOU, Y'ALL KNOW THAT I'M CONCERNED ABOUT PUTTING, CALLING IT WELL, PUTTING A PROJECT ON THE MASTER PLAN THAT HASN'T BEEN APPROVED AND THAT WE, THAT WE NEED TO, WE NEED TO, WELL, WE KNOW OUR, MAKE SURE THAT WE HAVE A COGNIZANT, THERE'S A COGNIZANT COGNIZANCE RIGHT.
IN EVERYBODY'S MIND OF WHAT'S ON THERE.
WELL, AND I WILL JUST SAY THAT THE MASTER PLAN FOR 2018 TO HAVE A LOT OF PROJECTS ON THERE THAT WEREN'T APPROVE.
WELL, BUT IT'S THE BOARD'S PLAN, CORRECT.
I GUESS, I MEAN, BOARD'S, WE PUBLISH IT, YOU'RE GONNA APPROVE IT.
IF WE, SO IF WE PUBLISH IT AS THE BOARD'S PLAN, WE SHOULD COGNIZANTLY APPROVE THE NEW ITEMS THAT WE'RE PUTTING ON THERE.
AND THAT'S WHERE WE'RE HEADING, THAT'S WHAT WE'RE TRYING TO GET TO.
AND THEN OF COURSE, EACH ITEM ON THERE HAS, HAS ITS OWN SET OF APPROVAL CHARGES BECAUSE IT'S, WELL, WHEN THE PLAN, WHENEVER, WHENEVER THE PLAN'S EXECUTED, YES.
THE INDIVIDUAL PROJECTS WILL GET THOSE HAVE BE INDIVIDUAL APPROVED.
LIKE THE BA WHAT BA HAS KIND OF PROPOSED THUS FAR IS REALLY WHAT YOU SHOW IN THE RIGHT ON, ON THIS SHEET WE HANDED OUT.
AND, AND WHAT WE WERE TRYING TO DO IS JUST GET A HOLISTIC PICTURE OF WHAT THOSE PROJECTS ARE APPROVING PLUS PROJECTS WE ALREADY HAVE WORKING AND, AND WE IN THE OLD PLAN THAT AREN'T NECESSARILY EXPLICITLY LISTED IN THE NEW PROPOSED PROJECTS.
I DON'T WANNA GET TOO MUCH INTO THE WEEDS AND DRAG IT ON, BUT I NOTICED WHILE WE'RE TALKING ABOUT THE PORT OFFICE GOING FROM ONE MASTER PLAN TO THE OTHER THOUGH, THE PRICE DIFFERENCE.
SO WHEN BA ADDED, THEY WENT THROUGH, THEY REFLECTED PRICES THAT WERE MORE COST, THAT WERE MORE ACCURATE TODAY, UH, BECAUSE AS JEFF SAID, THIS IS 2018 ORIGINAL MASTER PLAN.
SO THOSE, SOME OF THOSE COSTS ARE NOT APPLICABLE ANYMORE THAT THE ESTIMATES THAT WERE GIVEN BACK IN 2018.
UH, YOU KNOW, IF WE WENT FORWARD WITH SOME OF THESE PROJECTS, OF COURSE, WE GET ESTIMATES RENEW THE, REDO THE ESTIMATES TO GET A MORE ACCURATE PRICE.
AND, AND, AND THE SCOPES ARE NOT APPLES TO APPLES THERE EITHER.
UM, BECAUSE THE, THE NEW ONE THAT THEY PROPOSED WAS KIND OF AN OFFICE COMPLEX THAT EVEN OUR TENANTS ON THE PORT COULD SHARE OFFICE SPACE AND WE COULD LEASE OUT SPACE IN IT.
SO, WELL, YEAH, I THINK ANOTHER THING THAT'S IMPORTANT, BUT NOTE HERE IS THAT IN THE, IN THE NEW MASTER PLAN, BASED ON THE TIME THAT THE PROJECT IS SCHEDULED, THEN AN INFLATIONARY FACTOR HAS BEEN FIGURED IN.
SO, AND I, AND I DON'T WANT TO CONFUSE THINGS.
WELL, YOU LOOK AT THIS PAGE WE JUST HANDED OUT, AND YOU'LL, YOU'LL SEE THE BEGINNINGS OF THE YEAR WE WOULD INTEND TO START THESE PROJECTS,
[01:25:01]
AND THEN HOW LONG IT'S GONNA TAKE US TO BUILD THE PROJECTS ONCE THEY'RE ADDED.AND, AND THEN SAY IT'S OUT LIKE 28, 29, 30, THEN THERE IS AN INFLATION FACTOR BUILT INTO THE COST THAT WILL BECOME MORE APPARENT AS WE DETAIL OUT THE PROJECTS WORKSHEETS LIKE YOU'RE USED TO SEEING.
BUT, YOU KNOW, WE, THIS IS ONE OF THE THINGS WE RAN INTO ON SEVERAL PROJECTS.
WE HAD PROJECTS THAT WERE IN THE MASTER PLAN, AND WE EVEN USED THOSE NUMBERS IN SOME CASES, UH, FOR GRANT APPLICATIONS.
AND AS WE, AS WE'VE SEEN RIGHT OUT HERE AND, AND ON THE WEST END, WE'VE SEEN COSTS HIGHER THAN WHAT WE PICKED THEM UP OUT OF THE MASTER PLAN.
SO THIS IS, WE, AND WE HAD THESE CONVERSATIONS WITH BA AND BA BUILT IN THEIR MODEL AND INFLATION FACTOR, I THINK, WAS IT 3%? I THINK IT'S TWO AND HALF, TWO AND HALF, TWO AND A HALF PERCENT THROUGH THE WHOLE, THROUGH THE WHOLE PROJECT.
SO SOMETHING GOING IN, STARTING IN 25, I MEAN, 35 IS GONNA HAVE AN INFLATION FACTOR IN THERE.
THE, UH, THE, UH, MARITIME FOR AND OFFICE COMPLEX.
IS THAT, IS THAT PROJECTING WILL BE A FREESTANDING BUILDING OR YEAH, NO, THE, SO THAT'S NOT IF WE WOULD PUT IT ON THE TOP OF A PARKING GARAGE OR SOMETHING.
IN THE MASTER PLAN CURRENTLY THAT WAS DEPICTED, IT'S KIND OF AROUND 29TH STREET, AND IT WAS SHOWING AN OFFICE BUILDING WITH ITS OWN PARKING GARAGE TOO.
UM, YOU HAVE IT FOR THE 33RD STREET TRAFFIC LIGHT TO BEGIN IN 27 Y YES.
UM, AND THAT HAS TO DO WITH, UM, SOME CONVERSATIONS THAT WE'VE HAD.
YOU KNOW, WE'VE BEEN ON SOME MEETINGS WITH TX TO AND, AND THE CITY, AND AT THIS POINT THEY WERE TELLING US THAT THAT ONE WOULD HAVE TO BE A, A 27 LET DATE.
UH, AND, AND ULTIMATELY, I DON'T HAVE EXACTLY FOR YOU WHAT THAT WOULD MEAN, BUT THAT'S WHAT THEY KIND OF TOLD US BASED UPON WHERE THE PROJECT IS AT THIS POINT, YOU KNOW, THE CITY'S INVOLVED, THE CITY ON THAT, THE PLANNING PROCESS.
UM, BACK TO THE MID COURTS, UM, THE, THE MP, OLD MASTER PLAN PROJECT MP THREE COURT SCIENCE PROGRAM, THAT PROJECT, WE HAD RECEIVED A GRANT FOR, UH, UH, WAYFINDING AND SIGNAGE.
AND SO WE'RE, WE HAD ALREADY REPLACED, ADDED THE PW TO THE OLD PROJECT.
AND THAT DOES SHOW UP IN OUR, OUR NEW MASTER PLAN.
SO THIS PARTICULAR ONE WAS KIND OF A DUPLICATION THAT WAS ON OUR EXISTING SHEETS.
SO WE REMOVED THAT, UH, WHARF ROAD.
THIS IS THE ONGOING WORK BETWEEN 20TH STREET 23RD STREET THAT WE'RE TRANSFERRING THE CAPITAL BALANCE ON.
IT'S AN ACTIVE PROJECT, UH, CRUISE TERMINAL 28 REPAIRS.
THIS IS SOME REPAIR WORK WE GOTTA DO OUT AT, UH, CRUISE TERMINAL 28, UH, TO THE PIER.
AND THAT WE HAVE NOT STARTED, BUT WE WERE TRANSFERRING THAT PROJECT OVER TO THE NEW MASTER PLAN AND, AND THE, WE'RE TRANSFERRING THESE OVER IN GROSS, RIGHT? WE'RE TRANSFERRING THESE INTO THE, YOU KNOW, YOU WERE USED TO SEEING WHERE WE HAD SOME ORIGINAL ESTIMATES ON THE OLD SHEETS, AND THEN RIGHT NEXT TO WE HAD THE ACTUAL COST.
SO WHAT WE'RE SHOWING TODAY IS THAT WE'RE, WE'RE TRANSFERRING THE TOTAL PROJECT COST OVER TO THE NEW MASTER PLAN.
AND THEN WHEN WE JUST, WHEN WE GET TO THE NEXT STEP, WE'LL BE SHOWING HOW MUCH LEFT, HOW MUCH IS LEFT ON EXISTING PLANS OR, AND, OR THE TIMING OF NEW PROJECTS AND HOW WE WOULD INTEND TO FUND THOSE PROJECTS IN THE FUTURE.
NOW, OBVIOUSLY $2 BILLION, IT'S NOT COMING OUTTA CASH FLOW.
UM, BUT, YOU KNOW, WE, WE HAVE TO PLAN.
SO THIS IS A 20 YEAR PLAN, AND LEMME KNOW IF I'M JUST CONFUSING YOU MORE.
SO NOW, UH, THE, UH, THE NEXT PROJECTS WE HAD WERE THE CRUISE FROM 1 25, 28 GROUND TRANSPORTATION AREA IMPROVEMENTS THAT, THAT PROJECT, UH, WE HAD COMPLETED.
UH, WE WERE REMOVING THE, THE REMAINING, UH, BALANCE.
WE'D ONLY GOTTEN APPROVED ABOUT A HALF A MILLION DOLLARS FROM Y'ALL TO DO THE ROADWAY OUT IN FRONT OF HERE.
THE, THE MASTER PLAN PROJECT WAS, UH, $1.6 MILLION.
BUT, UH, SINCE WE COMPLETED THAT ROADWAY, WE'RE REMOVING THAT PROJECT.
UH, WHERE DID THE, ALL THAT WORK IN HOUSE, UH, THE CRUISE TERMINAL 25 JUBILEE RENOVATIONS THAT WAS COMPLETED, IT WAS STILL ON THE PLANT.
SO WE WERE REMOVING THAT PROJECT, UH, HERE, 2122 BOARDWALK PROMENADE GREEN CONNECTION.
UH, THIS ONE WAS LISTED JUST WITH A SLIGHTLY DIFFERENT
[01:30:01]
NAME, UH, IN, IN THERE.IT'S CALLED THE WATERFRONT GREEN BELT.
IT WAS PROJECT MP FOUR ON THE, THE, THE NEW PLANT, UH, THE, UH, 25TH STREET, UH, CRUISES FROM THE WALKWAY.
UH, THAT PROJECT'S BEEN TRANS, YOU KNOW, IT'S, IT'S, IT'S BEING BID RIGHT NOW.
AND SO WE'VE TRANSFERRED THAT PROJECT AND WE'VE UPDATED THE COST FROM, UM, WHAT THE OLD PROJECT ESTIMATE WAS TO WHAT THE NEW PROJECT ESTIMATE WAS, THE NEW, WHICH IS WHAT, UH, IT WENT FROM 9.5, 3.7 TO 9.5.
AND, AND THE 9.5, IT WAS 9 MILLION IN HARD COSTS AND 500,000 IN SOFT COSTS.
AND THAT'S JUST KIND OF THE WAY THAT THE PA SHEET WAS WORKING.
SO, SO THAT, THAT, THAT COST ULTIMATELY WOULD BE BROUGHT BACK TO Y'ALL NEXT YEAR, MONTH, RIGHT.
'CAUSE WE'VE GOT OUT TO BID RIGHT NOW, AND WE'VE CHANGED THE DRAWINGS AND CHANGED.
WE'VE DONE SOME VALUE ENGINEERING ON IT.
AND SO WE'RE WAITING TO SEE HOW THAT REFLECTS.
BUT WE'RE, WE'RE, WE'RE TRYING VERY HARD HERE TO MAKE SURE THAT WE GO FROM WHAT YOU'VE SEEN FOR THE LAST THREE YEARS TO THE NEW MASTER PLAN.
AND SO WE REALLY, I MEAN, LITERALLY HAVE DISCUSSED EVERY ONE OF THESE LINE ITEMS AND WHERE THEY GO, WHAT IF WE HAVE CURRENT COSTS ON 'EM? IF WE DON'T, THEN WE'LL BE MOVING THEM OVER TO WHAT BA IS SUGGESTING THE COST WOULD BE, RIGHT, JEFF? CORRECT.
UH, THE, THE NEXT ONE WE HAD WAS, UH, THE CT 25 PBB REFURBISHMENT.
SO WE REMOVED THAT ONE, UH, FOLLOWING LINE ITEM IS THE CRUISE TERMINAL 28 PBB REPLACEMENT.
UM, THIS IS, YOU KNOW, THE, THE, THE P BS OUT THERE, 25 YEARS OLD.
SO WE WERE KEEPING THIS ON, WE'RE TRANSFERRING THAT TO THE NEW MASTER PLAN.
SO WE'VE UPDATED, WE, WE'VE KEPT THE PROJECT, BUT WE'VE UPDATED THE COST.
AND YOU KNOW, OBVIOUSLY BACK IN 18, WE THOUGHT MAYBE IT'D BE A MILLION DOLLARS.
AND I THINK THAT THAT ONE, ACTUALLY, THAT MILLION DOLLARS WAS JUST THE FIRST YEAR SPENT.
THEY WERE, THEY WERE ALWAYS ABOUT THE MILLION, THE $8 MILLION, THE MILLION DOLLARS WAS THE FIRST YEAR SPENT.
SO THAT MIGHT JUST BE, YEAH, THAT, THAT'S, THERE'S THE ESTIMATED ACTUAL FOR, FOR THE FIRST YEAR BACK WHEN WE PUT IT ON, UH, THE, THE NEXT ONE.
MOVING ON TO THE NEXT PAGE, WE'VE GOT EXPRESS LOT RAIL, UH, UH, RAIL REMOVAL, STRATEGIC PLAN.
SO THIS ONE, WE STILL HAVE A MILLION DOLLARS LEFT TO SPEND IN THAT PROJECT.
WE HAVEN'T BEEN DOING ANY WORK ON THAT.
OH, UH, JOHN, IF YOU CAN GO THE EXPRESS LOT, WE, WE STILL HAD, WE, WE'D SPENT, UM, OF, OF THE, UH, 2.8 THAT Y'ALL HAD APPROVED FOR US.
WE'VE, WE'VE SPENT ABOUT 1.8, SO WE'VE GOT A MILLION DOLLARS APPROXIMATELY LEFT ON THAT PROJECT.
UM, SO WE WERE STILL, YOU KNOW, RIGHT AT THIS POINT, NOT SURE EXACTLY HOW, HOW THAT'S GONNA PLAY IN, BUT THERE'S A COUPLE THINGS, UM, AT, AT PLAY THAT WE'RE GONNA LEAVE THAT ONE OR, OR PROPOSE THAT ONE GETS TRANSFERRED TO THE MASTER PLAN AS WELL.
UM, THE NEXT ONE, CT 28 CBP IMPROVEMENTS.
UM, THIS WAS ONE THAT, UM, AFTER SOME DISCUSSION, THE BOARD HAD ASKED US TO PUT THAT ON THERE.
WE, WE KNOW THAT LIKELY SOMETHING HAS TO HAPPEN AT THAT TERMINAL IN THE FUTURE GIVEN THE CURRENT CBP FACILITIES.
AND SO WE HAD $5 MILLION FOR UPDATING THE CT 28 CBP AREA THAT'S TRANSFERRED TO THE NEW MASTER PLAN.
AND THEN WE'VE GOT THE LAST ONE, SAFE STREETS.
THAT ONE, UH, THAT WAS JUST THE STUDY PART OF SAFE STREETS WE'RE STILL AWAITING, UM, UH, KIND OF WHO'S GETTING GRANTS FROM THE, OUT OF THAT SAFE STREETS PROGRAM.
SO THIS WAS THE STUDY WE WERE GONNA REMOVE THAT WE WEREN'T PUTTING ANYTHING FOR THE SAFE STREETS IMPLEMENTATION ON YET.
BUT ONCE WE HEAR BACK FROM THE PROGRAM, WE HAVE SOMETHING TODAY ON, ON THAT, DON'T WE? UH, THAT'S THE, THIS, THIS THE SAME SAFETY ACTION PLAN THAT Y'ALL HAD APPROVED.
RIGHT? UH, LAURA HAD SUBMITTED IT ALSO TO A T UH, TRANSPORTATION ALTERNATIVES PROGRAM.
AND WE RECEIVED MONEY FROM THAT.
WE GOT SOME FUNDING FROM STATE, WHICH, RIGHT.
AND THEN, OKAY, SO THEN THE NEXT FIVE TO 10 HERE, UH, WE HAD, UH, PIER 27, 28 SHEET PILE REPLACEMENT, UH, THAT WILL STILL HAVE TO HAPPEN SOMETIME IN THE FUTURE.
SO WE'RE TRANSFERRING THAT, UH, PROJECT INTO THE NEW MASTER PLAN CRUISE TERMINAL 28 IMPROVEMENTS.
THAT WAS SOMETHING THAT WAS ON THE EXISTING MASTER PLAN.
THAT WAS, THAT PROJECT WAS REALLY KIND OF, UH, A REFURBISHMENT OF THE FACILITY, BRINGING IT UP TO CURRENT STANDARDS, KIND OF LIKE WE DID AT CRUISE TERMINAL, UH, CRUISE TERMINAL 25, UH, IN 20 20 23.
UH, AND SO THAT WAS WHAT WAS ON THE OLD PLAN.
THE NEW PLAN HAD ANOTHER PROJECT, BUT IT SAID, UH, UM, LOOKING AT RELOCATING, UM, AND REPLACING CREW FROM TWO AT A POSITION A LITTLE BIT FURTHER WEST.
SO THAT'S WHY I HAVE THAT ONE AS IT'S
[01:35:01]
ON THE PLAN, BUT IT'S KIND OF THE, THE SCOPE HAS CHANGED.UM, IT'S WP 34 NOW, AND IF YOU REMEMBER THE, THE SHEETS WE GAVE OUT LAST WEEK FROM VA LAST MEETING, YOU KNOW, TALKS ABOUT A, UH, FLEX DOCK TERMINAL, UM, AT THAT LOCATION THERE, UM, IF YOU REMEMBER SEEING SOME, UH, SOME RENDERINGS WE HAD WHERE WE SHOWED SOME, UH, A TERMINAL THAT COULD ACTUALLY IN, IN THE, IN THE FUTURE, SERVE THREE CRUISE SHIPS AT ONCE.
AND SO, YOU KNOW, WHAT BA HAS DONE IS THEY'VE DEVELOPED, BECAUSE WHAT THE, THE PLAN IS, IS TO BE ABLE TO CONTINUE TO BE ABLE TO USE, IF WE WOULD NEED THE EXPANSION FOR THE CRUISE BUSINESS TO BE ABLE TO CONTINUE TO USE THAT AREA FOR CARGO.
AND SO THERE IS A FLEX, WHAT, WHAT WE'RE CALL A FLEX PLAN THAT WOULD ALLOW A WIDER, A WIDER BERTH SO THAT YOU COULD MOVE CARGO THERE ALSO.
AND YOU WOULD MOVE, YOU WOULD BACK THE TERMINALS UP, UM, IF YOU INTO, IF YOU GOT THAT FAR, WHICH IS, I MEAN, IT'S OUT IN THE FUTURE, BUT I MEAN, THEN IT WOULD GIVE YOU THE, THE ABILITY TO, TO SERVICE CREWS AND CARGO AT ONE, ONE LOCATION ON THE PORT, WHICH WOULD BE, YOU KNOW, WHERE 28 IS NOW.
AND THEN POTENTIALLY PARTIALLY WHERE THE, UH, UH, GRAND BERRY CAME, CAME DOWN.
UM, BUT THE NEXT PROJECT WE HAD ON THE OLD MASTER PLAN WAS THE CRUISE 20 25, 28 PARKING GARAGE DEVELOPMENT.
UM, THIS ISN'T EXPLICITLY ON THE NEW MASTER PLAN, BUT THEY DO SHOW A, A TERMINAL TWO GARAGE, WHICH IS RIGHT IN BETWEEN, KIND OF IN THE SAME PLACE AS, AS THE EXISTING TERMINAL TOO.
SO IT'S, YOU KNOW, PARKING GARAGE DEVELOPMENT AT THE, KIND OF THE MID TO WEST PORT COMPLEX IS ON THERE, BUT, BUT NOT NECESSARILY THIS EXPLICIT ONE.
UH, THE NEXT ONE WE HAD WAS, UH, CRUISE TERMINAL 25, PIER 26 WORK.
UM, A LOT OF THIS WORK WE, WE'VE KIND OF INCORPORATED INTO OTHER PEER WORK IN THE AREA.
AND SO, UM, WE'RE, WE'RE PROPOSING TO REMOVE THAT FROM THE EXISTING MASTER PLAN.
YOU'RE TALKING ABOUT MP SEVEN, RIGHT? MP SEVEN? CORRECT.
UH, THE NEXT ONE WE HAD, UH, IT'S KIND OF A SIMILAR AS TO MP FIVE, MP 16.
IT WAS JUST AN OLD MASTER CLAIM WAS SHOWING A FUTURE EXPANSION OF A PARKING GARAGE DEVELOPMENT AT KIND OF IN THE MID PORT AREA.
AND LIKE, THERE ARE, THERE'S THREE CURRENTLY, THERE'S THREE, UH, PARKING LOT OR PARKING GARAGE IMPROVEMENTS, UH, PLAN IN THE PROPOSED PROJECTS FROM THE VA FOR THE NEW MASTER PLAN.
AND THEN THAT'S REALLY IT FOR THE, THE, THE MID PORT PROJECTS THAT WERE ON OUR EXISTING MASTER PLAN.
AND THEN REALLY ON THE WEST, THERE'S A LOT, LOT OF GREEN HERE, BUT THAT'S JUST BECAUSE, UM, IF YOU LOOK AT, UH, THE, THE, THE, THE LAST SHEET, THE SECOND SHEET ROBERT HANDED OUT, THERE WEREN'T A LOT OF, UM, THERE'S A LOT OF EXISTING PROJECTS THAT JUST NEEDED TO BE CARRIED FORWARD HERE, BECAUSE THIS IS EVERYTHING FROM WHAT WE'RE DOING OUT BETWEEN, UH, PIER 37 TO PIER 41, UH, WHICH IS, IS REALLY TAKING A LOOK AT, UM, A COUPLE OF THESE PROJECTS.
BUT, BUT WHAT WE CALL THE CARGO RURAL YARD EXPANSION AND RELOCATION AS WELL AS, UH, THAT'S WP THREE, UH, WP EIGHT, WP TWO A, THE SLIP FILL PROJECTS.
WP ONE IS, IS THE, THE SLIP FILL THAT WE'RE CURRENTLY DOING RIGHT NOW.
SO, UM, I'M SORRY I WAS JUMPING ALL OVER THE PLACE, BUT GENERALLY SPEAKING, UH, JUST ABOUT EVERYTHING FROM THE WEST END, IT'S BEING CARRIED FORWARD EXCEPT FOR, UH, IF YOU FLIP TO PAGE SIX, JOHN, IT'S JUST THE, THE WHARF ROAD INTERNAL ROAD THAT WAS COMPLETED.
UM, WE, WE KNOW THAT THERE'S STILL A LOT OF WORK TO BE DONE ON THE WEST END, AND SO WE DIDN'T WANT TO REALLY START REMOVING STUFF DOWN THERE WHENEVER WE'VE, WE'VE ONLY TOUCHED SMALL PIECES OF IT AND WE HAVE ASPIRATIONS TO CONTINUE TOUCHING IT.
THE OTHER ITEMS ON PAGE SEVEN, JOHN, IF YOU GO FORWARD, WE'RE, WE'RE PROPOSING NOT IT'S MOVING FORWARD.
UM, ALTHOUGH IT DOESN'T MEAN THAT NOTHING CAN BE DONE IN THIS AREA, BUT IT'D PROBABLY BE INCORPORATED IN A DIFFERENT PROJECT.
BUT THE BOLD MASTER PLAN PROPOSED A 40TH STREET GATE REDEVELOPMENT AND IT SHOWED A DIFFERENT ALIGNMENT.
YOU KNOW, AFTER REVIEWING THAT OVER THE LAST FEW YEARS, WE JUST FEEL LIKE THERE MIGHT BE SOME IMPROVEMENTS WE CAN MAKE IN THAT AREA.
BUT IT WOULD BE DONE WITH, UH, WHAT WE CALL, UH, IT WOULD BE DONE WITH WHAT WE CALL, UH, PARK BLUE YARD.
UH, THAT'D BE DONE WITH WHAT'S, WHAT WAS WP 15 CARGO ROW YARD EXPANSION,
[01:40:01]
RELOCATION.THIS IS BASICALLY IMPROVEMENTS DONE TO THAT AREA BETWEEN 36 AND 41 SOUTH OF NORTH ROAD, WHICH IS TED SHOWN.
AND, AND ONE OF THE THINGS THAT WE'RE, WE'RE ALSO, UM, BELIEVE IS, IS IN THIS AREA RIGHT HERE WOULD BE, UM, UH, SOME STAGING FOR TRUCKS, UM, WHERE WE'VE HAD A COUPLE CONVERSATIONS WITH TEXDOT ABOUT, UM, THEY, THEY HAVE SPECIAL FUNDS FOR, UM, STAGING AREAS FOR TRUCKS.
'CAUSE THIS IS HAPPENING ALL OVER THE HOUSTON, WELL, ALL OVER THE COUNTRY REALLY IS, IS ALL WHERE ALL CARGOES BEING MOVED BY TRUCKS, WHERE ARE THOSE TRUCKS STAYING BEFORE THEY GO PICK UP THEIR CARGO? AND SO WE, WE HAVE THAT HERE.
WE HAVE TRUCKS THAT STAY UP ON THE MAINLAND AND BEFORE THEY COME DOWN HERE, WE HAVE SOME LOCATIONS DOWN HERE IN THE, UH, MID PART OF, UH, OR CLOSER TO THE PORT WHERE SOME TRUCKS STAGE.
SO ONE OF THE THINGS, AND WE'RE WATCHING REAL CLOSELY A PROJECT THAT HAPPENED DOWN IN, UM, UM, FREEPORT WHERE THEY BUILT A STAGING FACILITY ON FREE PORT'S PROPERTY.
NOW THEY MOVE A LOT MORE TRUCKS THAN WE DO.
BUT, YOU KNOW, WE ARE STILL CONCERNED, WE'RE STILL HAVE CONCERNS THAT, YOU KNOW, WE HAVE FOUR CRUISE TERMINALS NOW AT 20 TO 30 TO 40 TRUCKS PER, UH, CRUISE, UM, WHERE THOSE TRUCKS STAY BEFORE THEY GET COME IN BECAUSE WE WANT, WE DON'T WANT 'EM STAYING DOWN HERE.
AND WE, WE MAY PROVISIONS FOR THAT NOT TO HAPPEN DOWN HERE.
SO THIS IS ONE OF THE THINGS THAT WE ARE, WE'LL, THIS BOARD WILL HAVE MORE CONVERSATIONS ABOUT HOW WE STAGE THAT AND IS THAT PART OF ADDITIONAL LANES ON THE WEST, UH, WHARF ROAD OR IS THAT SOMEWHERE AT ANOTHER DESIGNATED AREA AND OR THE MOVEMENT OF THE GATE, BECAUSE THE GATE IS, IS IN THAT MIDDLE IN THAT AREA, WHICH WE WOULD ANTICIPATE COULD BE SOME, UM, SOME, YOU KNOW, PLACES TO STORE PUT TRUCKS.
AND SO THAT'S WHY, AND, AND THEN ALSO THE PIECE THAT IF YOU REMEMBER FROM THE OLD MASTER PLAN IS THE, UH, CNM HEADQUARTERS, UM, IT'S ALL IN THAT GENERAL AREA RIGHT IN THERE.
AND SO, YOU KNOW, WE DON'T HAVE THE ANSWER TO THAT YET, BUT I THINK ONE OF THE THINGS WE'LL BE STUDYING, AND WE HAVE MEETINGS TOMORROW WITH TECH STOCK, THEY'RE COMING INTO TOWN TO TALK ABOUT THE, THE NEW PRO PROJECTS THAT WE SUBMIT UNDER THE PORT MASTER PLAN FOR THE STATE.
AND ONE OF THE THINGS WE'LL BE TALKING TO THEM ABOUT IS, IS THE REDESIGN OF THAT AREA MORE EFFICIENT? IS THERE A MORE EFFICIENT DESIGN, I GUESS.
AND WE'RE GOING TO HOPE TO GET SOME, UM, INPUT FROM THEM ON THAT, WHICH WILL GIVE US A LITTLE BIT BETTER HANDLE ON TWO OR THREE PROJECTS THAT WE'VE HAD IN THAT AREA THAT WE WANT TO MOVE FORWARD.
BUT THEY MAY TAKE A DIFFERENT LOOK, OBJECT IN IN, UH, GOING GET, THINKING ABOUT THE PARKING, A ADDITIONAL PARKING GARAGE, SAY ONE IN THAT LIST, PART OF THE CRUISE COMPLEX OF DO WE NEED TO, OR SHOULD WE, SHOULDN'T WE, UH, CONCURRENTLY PLAN THE, UH, RE REALLOCATION OF EXISTING SURFACE LOTS AND PLAN, IN OTHER WORDS, PLAN ON MAKING SURFACE LOT X OR WHATEVER IT IS, YOU KNOW, INTO A USABLE LAY DOWN YOUR YEP, YEP.
UM, AND WE DO HAVE ONE PROJECT LISTED ON HERE.
UM, IT'S, UH, IF YOU LOOK DOWN AT THE LOWER END, IT'S UH, IT'S ABOUT MIDWAY THROUGH THAT THAT, THAT IT'S WP 20 MIDWAY THROUGH THAT BOTTOM BLUE SECTION ON THE MM-HMM
SECOND SHEET WP 20 PROJECT CARGO YARD.
AND THAT'S AN EXISTING MASTER PLAN PROJECT THAT WE WERE CHOOSING TO KIND OF BRING FORWARD IN THE NEW NEW PLAN AS WELL.
UM, IT WILL BE LOOKING, BUT, BUT THERE'LL BE MORE BECAUSE WE'LL PROBABLY FREE UP, WE, WE MAY BE ABLE TO GET AWAY FROM USING SURFACE FOR THE MOST PART SOUTH OF OUR SIDE AND WEST OF 29TH.
AND, AND I THINK ONE OF THE THINGS TOO THAT, THAT LENDS TO THAT IS, IS UM, THE STUDY MONEY THAT WE HAVE ON THE OVERHEAD HIGHWAY FROM 45 TO THE PORT.
BECAUSE ONE OF THE, ONE OF THE THINGS THAT, UH, WE WANT TO ADD TO THAT IS EXTENSION OF THAT.
AND WE, WE CAN'T SAY IT'S OVERHEAD ALL THE WAY OR ANYTHING LIKE THAT COULD BE JUST, UH,
[01:45:01]
BRANCHES.UH, BUT YOU KNOW, ONE OF THE THINGS WE WANNA MAKE SURE IS, IS THAT WE CAN HAVE THAT FREE ACCESS.
WE TALKED ABOUT THIS BEFORE, HAVING THE FREE ACCESS, UM, AT THE WEST END OF THE PORT UNDERNEATH HARBORSIDE DRIVE.
SOMEWHERE SO THAT WE CAN USE, BUT YOU CAN DO EXACTLY WHAT YOU'RE SAYING.
BUT, AND, AND THE, THE NEW SURFACE, THE REDO OF THE SURFACE LOTS NEEDS TO ACCOMMODATE THE ROADS THAT ARE NECESSARY TO GET, YOU KNOW, TO GET HEAVY, HEAVY STUFF FROM EXACTLY THE WATERFRONT TO THE, TO THAT LAY DOWN AREA, WHICH
AND IT COULD BE QUITE EXPENSIVE ORDEAL.
NOW I SOMETHING THAT, THAT MAGNITUDE'S NOT NECESSARILY LISTED, LISTED EXPLICITLY IN THIS MASTER PLAN.
HOWEVER, ROGER WAS MENTIONING WE DID RECEIVE THE MONEY FROM PIDP FOR THE MULTIMODAL STUDY, AND THAT'S ONE OF THE PIECES THAT WE WERE LOOKING AT DOING TO EXTEND THAT.
UM, UM, MP FIVE, WHAT DID WE PAY FOR THE PARKING GARAGE THAT WE JUST COMPLETED? WAS IT 55 60 MILLION? OH YEAH, YOU HAVE THAT NUMBER.
I MEAN THAT, THAT'S, I DON'T KNOW THE EXACT NUMBER OFF THE TOP OF MY HEAD, BUT YEAH, 56 MILLION.
SO THEN WHEN WE LOOK AT, UM, THE, THE JOB, THE JOB MP FIVE AND YOU SAY DEVELOPMENT ONE IS 30 MILLION, WHAT WOULD BE INCLUDED IN DEVELOP IN THE DEVELOPMENT PHASE OF THAT TO, UH, P FIVE? WHICH IS THE, THE MID THE CRUISE? YEAH, IT'S THE FIVE TO 10 YEAR MP FIVE ON THE OLD DOCUMENT.
YEAH, BECAUSE I THINK THAT WAS, THAT'S AN OLD NUMBER TOO.
THAT WAS, YEAH, BECAUSE I THINK THAT WAS A THOUSAND SPACE GARAGE AT 30,000 OF SPACE WAS WAS WHAT THAT, THAT WHAT WE WERE TALKING ABOUT.
BUT, BUT THAT WAS NOT THE NUMBERS WE SAW WITH CRUISE.
AND THERE'S A LITTLE BIT, YOU KNOW, GARAGES ARE, YOU CAN USE THE SPACE DOLLAR PER SPACE, BUT LIKE FOR EXAMPLE, THIS GARAGE HERE HAD PARKING ON THE GROUND FLOOR.
THE, THE, THE GARAGE WE BUILT HAD THE GROUND TRANSPORTATION AREA ON THE GROUND HAVING EXTERIOR CIRCULATION UP TO THAT.
SO THAT ADDS SOME COST TO THAT.
BUT DEFINITELY SPOT BASE THE MONEY GOES UP.
I WAS JUST MOSTLY WONDERING WHAT WOULD DEVELOPMENT PHASE ONE MEAN.
OH, SO, SO THEY, THE OLD MASTER PLAN HAD THAT, IF YOU LOOK DOWN AT MP 16, THAT WAS DEVELOPMENT PHASE TWO.
IT WAS JUST THE SAME PARKING GARAGE THAT WAS DEVELOPED AS A THOUSAND SPACES AND THEN EXPANDED TO 2000 SPACES.
AND WE, WE HAVE SOME THOUGHTS AND FOR DISCUSSION ON THAT, MAYBE THAT HAPPENS, YOU KNOW, IF THE BOARD DECIDE APPROVE
JUST TO, UH, WE WERE ON WP 13 WAS THE NEXT ONE THAT I WANTED TO GO OVER.
WE DIDN'T, THAT WAS A RAIL SPUR AND LOADING AREA THAT WAS ACTUALLY PICTURED IN THE UNION PACIFIC 20 ACRE LOT ON OUR OLD MASTER PLAN.
I THINK WE DO RECOGNIZE THAT WE HAVE SOME RAIL WORK TO BE DONE, BUT AT THIS POINT WE DON'T HAVE ENOUGH UNDERSTANDING OF ALL THE RAIL NEEDS TO PUT IN A SPECIFIC MASTER PLAN PROJECT.
SO WE WERE GONNA REMOVE THAT ONE, BUT TO BE ADDED TO SOMETHING ELSE IN THE FUTURE.
AND WE'RE, AND WE'RE STILL OPEN, IF YOU REMEMBER WE TALKED ABOUT, UM, PARTNERSHIPS, THREE P PARTNERSHIPS WITH THE WEST END.
AND OUR PLAN REALLY WAS TO DEVELOP AS MUCH AS WE COULD OURSELF.
AND SO, YOU KNOW, I THINK NOW, UH, AT REST US MEETINGS SET UP TO START TALKING ABOUT, YOU KNOW, IS IT IS NOW THE TIME TO SEEK OUT ASSISTANCE ON THE WEST END AS FAR AS, YOU KNOW, FINANCIALLY JUST TO BE, BECAUSE, YOU KNOW, WE REALLY NEED CONCRETE AND THINGS LIKE THAT.
WHICH, WHICH IS REALLY EXPENSIVE, YOU KNOW, WE'LL SAY WE'LL HAVE SOME SETTLEMENT ON WHAT WE'RE FILLING.
BUT, UM, WE'RE, IF YOU REMEMBER, WE'RE ONLY FILLING ONE SLIP AT THIS STAGE RIGHT NOW TOO.
UM, AND THEN THE LAST ONE WE HAD ON HERE, PERIOD, 35 SHEET PILE WALL REPLACEMENT.
THAT ONE, UM, SPECIFICALLY THAT, THAT, THAT AREA RIGHT NOW IS UNDER LEASE AND, AND THE TENANT IS REQUIRED TO, UM, MAINTAIN THAT, THAT STRUCTURE.
WE DID, HOWEVER, IT'S IN A FURTHER OUT PROJECT, BUT THERE'S, UH, THERE, THERE'S A COUPLE OF PROJECTS THAT, THAT ARE LISTED IN KIND OF A, A PEACH COLOR ON THE SECOND SHEET.
AND THOSE WERE PROJECTS THAT WEREN'T ON THE OLD MASTER PLAN, THEY WEREN'T ON THE PROPOSED PROJECTS, BUT WE FEEL LIKE THERE ARE THINGS THAT WE NEED TO DO, UH, WITH THIS.
[01:50:01]
UM, POLICE DEPARTMENT.UM, WE WERE, IF WE WERE GOING TO MOVE FORWARD WITH THE DEVELOPMENT AS SHOWN IN THE PROPOSED PROJECTS OF T TWO, T SIX AND T SEVEN IN THE FUTURE, WE'D DEFINITELY HAVE TO RELOOK AT OUR POLICE STATION LIST THERE.
UM, ALSO THEY SHOWED NEW TERMINAL DEVELOPMENT, NEW PARKING GARAGE DEVELOPMENT FOR BOTH THE PROPOSED T SIX AND T SEVEN, HOWEVER, THEY DIDN'T SHOW ANY WHARF WORK.
AND SO THAT'S WHERE YOU SEE THOSE TWO FLEX BIRTHS THAT ROGER WAS TALKING ABOUT.
FLEX BIRTH THIRTY THIRTY TWO AND FLEX BIRTH 33 TO 35.
IT'S JUST GENERAL, UH, UPGRADES TO THE WHARFS TO SUPPORT THAT PROPOSED CRUISE GENERAL AS WELL AS CARGO OPERATIONS AT THOSE LOCATIONS.
'CAUSE THOSE EARTHS ARE, ARE, UH, THEY'RE, THEY'RE NOT THE OLDEST ONES WE HAVE, BUT THEY ARE, THEY'RE NOT THE NEWEST ONES EITHER.
SO WE KNOW THAT ANY BUSINESS, UH, INCREASES OUT THERE REQUIRE WORK.
AND THEN WE ALSO ADDED SOME ADDITIONAL WATER, WATER MAIN REPLACEMENTS ON THE WEST END OF THE PORT.
WE'VE DONE A LOT OF WORK ON OUR WATER MAINS ON THE EAST END OF THE PORT, BUT WE'VE GOTTA PUT SOME MONEY IN THERE FOR THE WEST END AS WELL.
SO I, I, I APOLOGIZE IF I CONFUSED YOU WITH WALKING THROUGH LINE BY LINE, BUT, UH, THAT, THAT'S KIND OF THE, THE, THE OVERALL PICTURE DEAL.
WE, WE'LL, WE'LL HEAR IT AGAIN.
THIS IS THE FIRST YEAH, I, I WOULD JUST SAY, YEAH, IT'S REALLY GOOD WORD.
AND IT'S LIKE, KINDA LIKE WATCHING PAINT FIELD ORCO.
IT'S NOT THE MOST EXCITING THING TO GO THROUGH IT, BUT WHAT I WOULD SAY IS IT'S FOR, FOR THE BOARD TOO, THIS, THIS, IT IS KIND OF LIKE HOW MANY DECIMAL POINTS DO YOU CARRY A WRONG ANSWER BEFORE IT BECOMES THE RIGHT ANSWER.
BECAUSE WE KNOW, I MEAN, WE'RE TAKING THE MASTER PLAN, WE'RE TAKING KIND OF A SNAPSHOT, RIGHT, OF WHAT WE THINK THAT IS GONNA BE FIVE YEARS, 10 YEARS, 20 YEARS.
SO I GUESS FOR US AS WE GO THROUGH THIS TODAY AND REALLY THE SPECIAL MEETING, WE GOTTA BE A LITTLE BIT CAREFUL OF WHAT IT, MOST OF WHAT WE PUT DOWN IS GONNA BE WRONG.
IT'S JUST 'CAUSE WE'RE JUST TAKING A SNAPSHOT OF WHAT WE THINK.
I MEAN, WE'RE TRYING TO THINK IN OUR BEST PICTURE OF WHAT THE FUTURE'S GONNA LOOK LIKE BASED ON WHAT THE WORK VA DID ON THE MASTER PLAN.
SO I THINK WE GOTTA KEEP THAT IN MIND AS WE GO THROUGH THIS.
A LOT OF THESE ARE PLACEHOLDERS AND FUTURE BOARDS IN FIVE YEARS, 10 YEARS, 20 YEARS.
WE'LL, WE'LL CONTINUE AND WE WILL ACTUALLY CONTINUE TO ITERATE THIS AS WE LEARN MORE AS THINGS DEVELOP.
SO I THINK WE HAVE TO BE CAREFUL THINKING WE GOTTA GET THIS A HUNDRED PERCENT QUOTE RIGHT, BECAUSE RIGHT'S GONNA CHANGE OVER TIME.
IT'S, IT'S KIND OF REFLECTING WHAT YOU'VE DONE, TAKING THE EXISTING MASTER PLAN, TRANSITIONING IT TO WHAT WE THINK IS A GOOD BASIS, SNAPSHOT OF WHAT WE THINK THE FUTURE'S GONNA BE.
AND THEN EVERY MEETING EVERY YEAR, WE'VE GOTTA CONTINUE TO REVIEW THAT, ITERATE THAT, AND, AND I'M SURE WE WILL MAKE FUTURE BOARDS WILL MAKE MAJOR CHANGES OF THAT BASED ON NEW DEVELOPMENTS.
SO I GUESS MY, MY MESSAGE IS, YOU KNOW, I'M THE ENGINEER, RIGHT? LIKES DETAILS.
LET'S DON'T GET TOO HUNG UP ON THE DETAILS AS FAR AS, YOU KNOW, TO THE IN DECIMAL POINT BECAUSE IT'S GONNA CHANGE OVER TIME.
AND THAT'S, AND AND EACH, ANY PROJECT THAT WE PUT ON HERE IS NOT AUTOMATICALLY APPROVED.
IT WILL HAVE TO EACH, EACH PROJECT HAS TO STAND ON ITS OWN BASED ON ECONOMICS, BASED ON COMMUNITY NEEDS, THE PORT NEEDS.
SO I GUESS LET'S DON'T GET TOO HUNG UP ON THE INDIVIDUAL DETAILS AS, AS WE, WE NEED TO GET, TO GET A PLAN APPROVED AND OUT THERE.
BUT IT WILL CHANGE EVERY MEETING AS WE GO THROUGH IT.
WELL, AND JUST, AND, AND, AND I'LL, I'LL SAY IT AGAIN.
WHAT I'VE ALREADY SAID ONCE IS, OR A COUPLE TIMES WE ARE JUST TRYING TO SET THE STAGE TO MOVE FROM THE OLD MASTER PLAN TO THE NEW MASTER PLAN.
AND I DON'T KNOW IF JEFF, WE NEED TO, I, I THINK WE NEED TO SH WE NEED TO GO OVER THIS BECAUSE THESE ARE ALL NEW PROJECTS.
JUST SO THE BOARD WILL SEE WHAT IS GOING TO GO FORWARD ON THE NEW MASTER PLAN.
AND, AND NOT, AND HERE AGAIN, AS JEFF JUST SAID, YOU KNOW, WHO KNOWS WHAT IT'S GONNA BE, BUT HERE'S WHAT'S IN THE NEW MASTER PLAN SO THAT EVERYBODY UNDER EVERYBODY HERE UNDERSTANDS IF YOU NEED TO VETO SOMETHING OR YOU WANT TO TAKE SOMETHING OUT, HERE'S THE STUFF THAT'S GOING IN THE NEW PLAN.
AND, YOU KNOW, SO I THINK WHAT OUR PLAN, WHAT OUR, OR WHAT MY PLAN IS, IS THAT THE SPECIAL MEETING FOR US TO HAVE, UH, THE SAME FOR US TO HAVE THIS TRANS TRANSITION INTO, UH, THE SAME WORKSHEETS THAT WE WERE USING BEFORE BECAUSE WE FOUND THOSE TO BE VERY EFFECTIVE.
AND, UH, AND SO THEN, THEN THAT'S WHEN WE'LL START LOOKING AT FUNDING AND WHERE THAT COMES FROM.
HOPEFULLY BY THE SPECIAL MEETING WE'LL BE ABLE TO PRESENT THAT TO YOU.
'CAUSE ROBERT'S SHAKING HIS HEAD YES.
SO, UH, WE'LL, WE WILL, WE'LL DO THAT.
I MEAN, I THINK MAYBE, I DON'T KNOW IF YOU WANT TO JUST SAY, HEY, HERE, HERE'S, HERE'S THE, UH, HERE'S THE NEW STUFF.
SO WE, WE WENT OVER EVERYTHING BLUE AND KEITH UP THERE.
I CAN, I CAN JUST WALK OVER HERE TO THE MAP, WHICH WOULD BE THE, WE MADE COPIES.
[01:55:01]
MADE COPIES OF WHAT I JUST WENT OVER HERE, AT LEAST IN GENERAL.YEAH, THAT'S ALL REALLY DO THE SAME.
WE'RE SAYING NOW IS HERE'S WHAT IS GONNA BE, HERE'S WHAT THE NEW MASTER PLAN ANTICIPATES.
AND, UH, YOU KNOW, SO HOPEFULLY WHEN WE HAVE OUR SPECIAL MEETING, THERE'LL BE A COMBINATION.
AND THEN WE'LL HAVE THESE PUT IN HERE AND THEN WE'LL START TALKING ABOUT THE FUNDING PIECES OF THAT.
SO, UH, THE, OKAY, SO, SO I'M JUST GONNA GO DOWN ON THE WHITE, UH, BOXES ON HERE.
SO EP TWO IS SHOWING LAND RECLAMATION BETWEEN 10 AND 14.
AS FAR AS THE PLAN SHOWING RIGHT NOW, IT'S REALLY JUST FILLING IN THE SLIP 1214.
AND THAT WOULD ALLOW US FOR TO DO ADDITIONAL, UH, TERMINAL OPERATIONS AS WELL AS, UH, POTENTIALLY DEVELOPABLE PARCELS ON THAT, UH, EAST END.
UH, THE OTHER, UH, SLIP IS WHERE THE BATTLESHIP TEXAS IS BEING SHOWN TO.
THAT ONE WOULD NOT BE FILLED IN, UH, NEW BIRTH, 14 AND DOLPHINS AT PIER 10.
THAT ONE IS BASICALLY SHOWING THIS, UH, UH, BIRTH IN BETWEEN 10 AND 16 BEING CREATED.
AND THAT'S BASICALLY IN SUPPORT OF THAT, UH, TERMINAL 14 DEVELOPMENT, PROPOSED 14 DEVELOPMENT PLUS WHAT'S HAPPENING ON, UH, WHAT, WHAT HAPPEN ON 16TH, UH, PLUS WHAT WOULD HAPPEN.
AND THEN, UH, P 15 REPAIRS, THIS IS JUST A GENERAL, UH, UH, FACILITY, UH, REPAIRS THAT, YOU KNOW, AS PART OF THE, UH, CRUISE TERMINAL DEVELOPMENT, WE DID A FULL SCALE KIND OF, UH, SIDE ASSESSMENT OF THE MARINE STRUCTURES.
AND THAT'S JUST THE PROJECT TO KIND OF CORRECT SOME OF THE STUFF THAT WAS SHOWN THERE.
UM, NOTHING, NOTHING CRITICAL, BUT WE WANNA GET TO IT BEFORE IT GETS WORSE.
UM, AND NONE OF THAT RELATES TO THE MOORING OF THE, UH, USS TEXAS, CORRECT? CORRECT.
THAT, THAT, THAT IS, THAT IS JUST A GENERAL ASSESSMENT, UH, INFRASTRUCTURE REPAIR WORK.
AND THEN THE NEXT TWO PROJECTS, EP FIVE AND EP SIX, UH, SHOWS CRUISE TERMINAL 14 DEVELOPMENT, WHICH WOULD BE, YOU KNOW, DEVELOPED IN THE AREA OF KIND OF CRUISE TERMINAL OR, OR PIER 14.
AND ON, ON TOP OF THAT, UH, THAT LAND RECLAMATION, THAT'S P TWO.
JEFF, IF YOU DON'T MIND GOING BACK TO, UH, THE PIER 15 REPAIRS, DID YOU KNOW WE HAVE MISSED A SITUATION WHERE WE HAD THE, THE SMALL LEAKAGE THERE WITH, WITH THE MM-HMM
DID WE LEARN ANYTHING FROM THAT? ARE THERE ANY OTHER AREAS THAT NEED ATTENTION THAT, THAT WERE SIMILAR? UH, NOT, NOT THAT ARE SIMILAR TO THAT.
THIS, THIS IS A, THIS WORK HERE IS GENERAL KIND OF CONCRETE SPA REPAIR UNDERNEATH AND, UH, PILE REPAIR UNDERNEATH THE DECK OF THE OLD P.
BUT, BUT YEAH, WE DON'T HAVE ANY OTHER SITUATIONS THAT ARE SIMILAR TO THAT.
WE, WE'VE BEEN TAKING A LOOK AT, AT THE PEERS AND MAKING SURE, UM, UH, SITE, UH, THE NEXT ONE WE HAVE IS MP OR EP SEVEN, UH, SITE CIVIL FOR EAST PORT FRONTAGE.
I MEAN, THIS WAS BASICALLY, THEY HAD TWO DIFFERENT ONES, LAND IMPROVEMENT FOR DEVELOPMENT PARCELS, WHICH WAS THE $5 MILLION.
AND THEN THIS, THIS ONE EP SEVEN, THIS, THEY'RE BASICALLY, SOME OF IT IS DEVELOPMENT UP IN THE PORT AND SOME OF IT IS DEVELOPMENT DOWN ALONG HARBORSIDE DRIVE.
AND THAT'S WHAT THE FRONTAGE THEY'RE REFERRING TO IS THIS HARBORSIDE FRONTAGE UTILITY IMPROVEMENTS EAST PORT.
THEY HAD JUST A GENERAL, UH, PROJECT INTO IMPROVE SOME OF THE EXISTING UTILITIES WE HAVE ON THE EAST END IN SUPPORT OF ALL THE NEW DEVELOPMENT.
UH, THE NEXT TWO REALLY GO TOGETHER.
AND THIS IS, UH, ONE OF THE THINGS THAT, UH, THE USS TEXAS PARK, WHICH IS KIND OF A, A GENERAL PARK DEVELOPED NORTH OF WHARF ROAD, UM, JUST WEST OF 14TH STREET.
AND THEN WE HAVE THEN THE MARITIME PARK, WHICH WAS SHOWN THEN.
IT WAS WHAT WAS SHOWN SOUTH OF WHARF ROAD THAT KIND OF CONNECTED THE CITY INTO THE PORT.
UM, WATER WATERFRONT DEVELOPMENT AND LANDSCAPING.
THAT ONE DIDN'T HAVE A LOT OF CLEAR, UM, SCOPE OR, OR, OR DEFINED SCOPE.
AND SO IT'S REALLY JUST GENERALLY, YOU KNOW, TO, TO IMPROVE LANDSCAPING AND, AND, UH, UH, ITEMS ALONG THE, THE WHOLE EAST END OF THE PORT, SINCE IT'S GONNA BE MORE PUBLIC FACING AND GOOD OF THESE, A GOOD PORTION OF THESE WILL BE, UM, EXPENDITURES OF SOMEBODY THAT MOVES IN THERE.
I, THE OTHER THING IS, UH, THE ACTUAL SPECIFICATIONS AND STUFF, BECAUSE WE HAVE, WE, WE DON'T KNOW WHETHER THERE MIGHT BE THREE HOTELS THAT'S RIGHT.
A SHOPPING CENTER, YOU KNOW, SO IT COULD EASILY OVERBUILD AND UNDERBUILT AND HAVE TO DO IT AGAIN.
THIS IS THAT GONNA TAKE THAT, RIGHT? YEAH.
THIS, THIS IS THAT, YOU KNOW, AGAIN, WITH THESE CARRYING OUT THAT
[02:00:01]
DECIMAL POINT, HOW FAR WE DON'T, THESE ARE BEST GUESSES AT THE CURRENT TIME OF WHAT MIGHT GO THERE TO, TO REFLECT THE VISION IN THE MASTER PLAN.NOW, WHETHER THAT'S A VISION OR HALLUCINATION, RIGHT, TIME WILL TELL HOW FAR THAT GOES.
BUT THIS IS WHAT YOU WOULD NEED TO DO AS BEST WE CAN TELL AT THIS POINT TO SUPPORT THAT WITH RICHARD, TO YOUR POINT, IT COULD BE ONE, IT COULD BE TWO THAT WILL EVOLVE OR COULD BE NOTHING.
WE, WE, YEAH, WE DON'T, MY POINT IS, IS WE DON'T WANT TO, WE DON'T, WE DON'T WANT TO PREDETERMINE WE DON'T WANT TO PREDETERMINE WHAT'S GONNA BE THERE.
BUT THE OTHER PART OF THAT IS WE PROBABLY SHOULD BE BEGINNING A PROCESS OF GETTING THAT DETERMIN.
SO LIKE YOU SAID, YOU, YOU SAID FEW MINUTES AGO, PLACEHOLDERS YES.
THESE TEND TO BE A PLACEHOLDER BECAUSE THESE ARE THINGS WOULD AS A PORT WE WOULD WANT TO SEE HAPPEN IF THERE WAS DEVELOPMENT THERE.
YOU KNOW, FOR, FOR THE COMMUNITY.
AND, AND AS RICHARD SAID IT, BUT THEN, YOU KNOW, WE, ONCE WE AGREE TO THIS AND SAY, THIS IS OUR VIEW OF THE VISION OF WHERE THIS COULD GO, AND THEN IT'S OKAY, WHAT ARE THE PROCESSES THAT WE NEED TO GET IN PLACE TO START ADDRESSING? WHO'S INTERESTED IN DOING THAT? WHAT MIGHT IT LOOK LIKE? AND THEN THAT'S WHERE THESE THINGS START BECOMING A LITTLE MORE CONCRETE, IF YOU WILL, AS FAR AS PUTTING, WELL, MY THINKING IS PUTTING STUFF BEHIND IS, I'M, I'M MORE INCLINED TO, I THINK WE'RE TALKING, WE HAVE DOWN HERE 27 FOR SOME OF THAT UTILITY STUFF.
UH, MY THINKING IS IS THAT BY THAT, IN THAT TIMEFRAME, WE OUGHT TO BE SELECTING A DEVELOPER FOR LOT OF THAT STUFF AND THEN LET THEM HELP US DETERMINE WHAT, WHAT WE'RE GONNA PUT THERE.
I MEAN, 28 IS SOON, THESE ARE PROPOSED BY THE MASTER PLAN.
I THINK THIS IS STILL PART OF THE, THE, THE, WE'VE GOTTA MASSAGE IT LEFT AND RIGHT A LITTLE BIT ON THE TIMELINE.
AND MAKE SURE THE NUMBERS ARE PUT.
AND WE KNOW THESE NUMBERS AREN'T RIGHT.
THAT'S THE ONE THING WE COULD KNOW WHENEVER WE PUT THAT WE GOTTA, YOU GOTTA START SOMEWHERE.
ARE WE TRENDING MORE? IT'S MORE ABOUT THE PROJECT THAN IT IS THE COST AT THIS STAGE.
UM, THE NEXT ONE THAT'S WORTH NOTING IS, UH, THE TURNING BASIN NUMBER ONE, JUDGING, UH, THIS ONE HAD, YOU KNOW, THE, THE, THE MASTER PLAN SHOWS, UH, A SHIFT OF OUR, UH, EXISTING 1500 FOOT TURNING BASIN TO THE EAST TO MAKE ROOM FOR BIRTHS.
I WILL SAY, YOU KNOW, BASED UPON SOME OF OUR CONVERSATIONS WE'VE BEEN HAVING RIGHT NOW, WE DON'T BELIEVE THAT WE'LL HAVE TO DO THAT.
SO WE, IT'S KIND OF WHY IT'S YELLOWED AND THE COST IS ZERO, BUT IT'S ONE, IT'S STILL DISCUSSIONS WE'RE HAVING RIGHT NOW.
YOU'RE TALKING ABOUT SHIFTING IT THOUGH, A LITTLE MORE, LITTLE MORE EASE.
WELL, BECAUSE, YOU KNOW, WE HAVE, IF IF YOU WERE TO PUT THE ICON CLASS SHIP THERE, THEN YOU ARE, YOU'RE ON THAT, THE END OF THAT, THE EAST END OF THAT IS CLOSE TO THE CHANNEL AS IT IS.
AND AS A MATTER OF FACT, WE PAY GLO RENT FOR THAT PROPERTY THERE FOR THAT LITTLE CORNER THAT THAT GOES INTO THE CHANNEL.
AND SO, AS JEFF HAS SAID, ALL CONVERSATIONS WE'RE HAVING NOW HAVE STAYED, UM, FROM THE POTENTIAL BUILDER OF THAT IS, WE'RE GOOD TO GO.
WE THINK WE'RE GOOD WITH THE, THE BASIN AS IT IS.
UM, THE NEXT ONE, THAT'S REALLY IT FOR EASTPORT, ALL THE WHITE ONES, IF THERE'S ANY OTHER QUESTIONS DOWN THERE.
UM, AND THEN MOVING DOWN TO THE MID PORT, UH, NEW INTERNAL CRUISE ROAD, UH, I MEAN THIS IS KIND OF, YOU KNOW, WE'VE, WE'VE PRETTY MUCH COMPLETED THE, THE, THE, THE INTERNAL ROAD AS SHOWN BY, UH, THE, THE ORIGINAL MASTER PLAN.
BUT THIS, THIS INTERNAL CRUISE ROAD REALLY IS KIND OF IN SUPPORT OF WHAT THEY'RE SHOWING THE, THE FUTURE DEVELOPMENT OF, OF OTHER CRUISE ITEMS IN THIS AREA.
UM, UH, KIND OF JUST WEST OF CRUISE, 2025 OR 28, UM, ADDITIONAL ROAD PAVING.
THAT ONE IS JUST A, A MAINTENANCE ITEM THAT THEY'RE PUTTING ON THERE.
ADDITIONAL ROAD PAVING, UH, AND THEN ADDITIONAL UTILITY IMPROVEMENT.
SO THAT'S ANOTHER KIND OF PLACE.
EVERYTHING ELSE ON THERE WAS COMING OUT OF OUR KIND OF EXISTING MASTER PLAN.
AGAIN, THEY, THEY DID PROPOSE A GREEN BELT CONNECTING EAST AND WEST COURT, UH, AS, AND, UM, REALLY THE, THE, THE WEST, UH, PORT ITEMS, UH, THERE'S A COUPLE JUST CATEGORIES I CAN GO OVER REALLY QUICK.
YOU KNOW, WP 26, 27, 28, 29, CARGO WAREHOUSES, YARD IMPROVEMENTS, UTILITIES AND BUILDINGS.
THERE'S ALL THIS KIND OF PLACEHOLDERS TO KIND OF SUPPORT CARGO INDUSTRY.
[02:05:01]
WHERE WE WANTED TO KIND OF SUPPLEMENT AND GET A LITTLE MORE SPECIFIC WITH SOME OF THE PROGRAMMING WE'VE DEVELOPED WITH THE EXISTING MASTER PLAN.AND THAT'S ALL THE STUFF, THE BIG BLOCK OF STUFF YOU SEE, BLUE ABOVE ALL THAT IS, IS PUTTING IN THOSE KIND OF PAVEMENT AND CARGO YARD IMPROVEMENTS THAT WE'VE BEEN, UH, PLANTING SINCE THE, THE LAST MASTER PLAN.
THE NEXT ONE WE HAVE DOWN THERE, WP 30, WE TALKED ABOUT A LITTLE BIT THE MARITIME PORT OFFICE AND COMPLEX OR PORT AND OFFICE COMPLEX.
SO IT'S THAT AT THAT COST IS, IS MUCH MORE THAN WE WOULD NEED TO, BUT THAT WOULD BE KIND OF A GENERAL PORT OFFICE BUILDING THAT WE COULD LEASE SPACE TO ALL OF OUR TENANTS AND OTHER MARITIME BUSINESS HOLDERS.
UM, BUT, UH, WHAT, WHETHER OR NOT I, YOU KNOW, UM, THAT'S THAT ONE.
BUT TURNING BASE IN NUMBER TWO, DREDGING, THIS WAS BASICALLY SHOWING KIND OF JUST DREDGING OUT SOME OF THESE AREAS ON WESTPORT A LITTLE BIT MORE THAN THEY ARE.
SO THERE COULD BE ANOTHER, UH, TURNING BASIN OVER HERE.
IT WASN'T GONNA BE THE SIZE OF OUR 1500 FOOT ONE, BUT THAT'S WHAT THEY'RE SHOWING THE DREDGING OF TURNING BASIN NUMBER TWO, WP 32, UH, HISTORIC PRESERVATION, UH, SUN VESSEL.
SO WE HAVE A, UH, I LITERAL, IT'S A, IT'S A HUNDRED THOUSAND DOLLARS SUN VESSEL.
WELL, THIS IS, THIS IS BASICALLY, SO, SO I MEAN, TO NOT GET INTO THE DETAILS TOO MUCH.
I MEAN, THERE IS A STATE HISTORIC LANDMARK ON THE FORT THAT WE, UH, BACK IN 2015 WE HAD TO DO SOME WORK WITH BECAUSE OF, UH, EXPANSION PROJECT AT
UM, WITH THE IMPROVEMENTS SHOWN IN THE MASTER PLAN, WE'RE GONNA HAVE TO DO SOMETHING WITH IT.
AGAIN, IT STILL IS A STATE HISTORIC LANDMARK.
WE HAD A ANTIQUITIES PERMIT OPENED UP.
WE'RE FINALLY GETTING CONCURRENCE ON CLOSING THAT OUT.
UM, NOW, YOU KNOW, 10 YEARS LATER, WHERE'S THAT GENERALLY SPEAKING, I DON'T KNOW THAT IT'S, IT'S, WE'RE NOT SUPPOSED TO SHOW EXACTLY WHERE IT IS, BUT IT'S GENERALLY IN THIS AREA.
AND WE HOPE GENERALLY THERE'S NOTHING THERE.
YEAH, THAT'S, THAT'S, YEAH, THAT'S EXACTLY, SO THAT'S WHAT THAT WP 32 IS, IS JUST RECOGNIZING THE FACT THAT WE'LL HAVE TO DO SOMETHING THERE.
AND THEN THE OTHER WHITE ITEM THERE, UH, WE'VE GOT THE, THE WORK DEVELOPMENT, PROPOSED DEVELOPMENT WORK FOR A SIXTH AND SEVENTH CRUISE TROMBONE.
UM, AND THEN THE LAST ONE, YOU KNOW, THEY WANTED TO MAKE SURE WE CONTINUE, UH, SPENDING, UH, MONEY ON LANDSCAPING AND WATERFRONT DEVELOPMENT, WHICH I HONESTLY, I HAVE A, A COUPLE QUESTIONS TO ASK THEM ON THAT ONE AS WELL, WHY IT'S SO LARGE.
WHAT, WHAT, WHAT EXACTLY THEY, THEY'RE BIG NUMBERS.
UM, UH, FINALLY, NOT TO LEAVE OUT PELICAN ISLAND, YOU KNOW, THE MASTER PLAN IS SHOWING, UH, TWO GENERAL CARGO YARDS AND TWO BURS ON PELICAN ISLAND, ALONG WITH KIND OF A ROADWAY.
SO WE'VE GOT OUR HUNDRED ACRES UP HERE.
SO THE ROADWAY HAS KIND OF HIT FROM, UH, THE SEA WOLF PARKWAY DOWN INTO THE, THE, THE MEAT OF HERE.
AND THIS WOULD BE DIVIDED INTO TWO CARGO YARDS WITH 2000 FOOT BIRTHS.
UM, AS FAR AS THE MASTER PLAN HAS SHOWN, WHICH, WHICH PROJECT IS THAT ON? THAT IS, UH, IT'S, UH, IT'S ON THE, THE, THE VERY LAST PAGE.
P ONE, P TWO, P THREE, P FOUR, AND P FIVE.
AND THEY PUT MP IN FRONT OF EVERY SINGLE PROJECT, BUT I WASN'T GONNA SAY MP THAT TIME.
YEAH, I THINK THAT THAT KIND OF GIVES WHERE WE THINK WE ARE.
UM, AND THEN, YOU KNOW, I OBVIOUSLY AT, AT THE NEXT SPECIAL MEETING, WE CAN TALK ABOUT ALL THESE THINGS INDIVIDUALLY AGAIN, BUT NOW AT LEAST EVERYBODY ON THE BOARD HAS AN OPPORTUNITY TO SEE THE TRANSITION PLAN AND WHERE WE THINK THIS THING IS IN 20 YEARS, JUST LIKE WE DID IN 18.
UM, AND, UM, IT PROBABLY BRINGS UP MORE QUESTIONS THAN ANSWERS, BUT, BUT IT, BUT THANK YOU.
THAT WAS, IT WAS A LOT OF WORK AND IT TOOK QUITE A BIT OF TIME IN HERE, BUT I THINK IT WAS WELL WORTH, I MEAN, I, I FEEL LIKE A MUCH BETTER UNDERSTANDING OF KIND OF WHAT THAT NEW MASTER PLAN IS SAYING AND HOW THAT WOULD REFLECT IN, YOU KNOW, HOW, HOW WE WOULD GO ABOUT IMPLEMENTING THE NEW MASTER PLAN.
UH, AND ANGIE WILL SCHEDULE WITH US THE, YEAH, THE MEETING THAT WE'RE, AND WE WANT TO ALSO DETERMINE, UM, THE REAL ESTATE COMMITTEE.
I MEAN, IS THIS A ONE DAY THING, BUT WE ALSO NEED TO TALK A LITTLE BIT MORE WITH THE REAL ESTATE COMMITTEE AT SOME POINT IN TIME TOO.
YEAH, IT COULD BE ANOTHER MEETING, RIGHT? THAT WOULD BE A MEETING OF THE MOBILITY COMMITTEE.
SOMEWHERE IN BETWEEN THERE OR THE SAME DAY.
I MEAN, THIS COULD BE A, COULD BE A LENGTHY MEETING HERE TO TALK ABOUT ALL THIS.
AND, UM, THEN WE ALL, YOU KNOW, JUST THROWING AT THAT FRUIT FOR THOUGHT NOW IS TO GET THE, YOU KNOW, WE'VE BEEN TALKING A LOT INTERNALLY ABOUT THE MOBILITY PLAN AND HOW TO GET THAT GOING.
[02:10:01]
AND WE, WE'VE BROUGHT IN SOME CONSULTANTS AND STUFF THAT WE'VE USED IN THE PAST ON WHAT WE'VE ALREADY PUT IN PLACE.AND SO WE WANT TO HAVE THOSE CONVERSATIONS.
'CAUSE I KNOW JEFF IS WRITING THAT RIGHT NOW.
YEAH, WE HAVE AN AGENDA ITEM ON THE YEAH, WE, I THINK WE, WE CAN KIND OF FIND, YEAH, KIND OF HAVE THAT SAME DISCUSSION EXACTLY.
SO OTHER DEFENSE IF THERE'S NOT ANYTHING ELSE UNDER THE MASTER PLAN CAPITAL SCHEDULE.
[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 December 31, 2025, And Discuss And Consider Percentage Changes In The Fund Mix That May Be Necessary To Increase Investment Results]
NEXT ITEM IS DISCUSS AND CONSIDER PORTFOLIO PERFORMANCE ANALYSIS REPORT, SUMMARY OF INVESTMENT PERFORMANCE REPORT AND INVESTMENT DETAIL OF THE GALSTON MOORE'S PENSION PLAN PERIOD ENDING DECEMBER 31, 25.AND DISCUSS AND CONSIDER PERCENTAGE CHANGES IN THE FUND MIX THAT MAY BE NECESSARY TO INCREASE INVESTMENT RESULTS.
SO IS THAT YOURS? WELL, I MEAN, IT IS JUST, YOU KNOW, WE JUST SAW THE PERFORMANCE ANALYSIS AND I THINK MARK SAID BASICALLY WE'LL STILL BE WAITING ON NY HARD JUST, YOU KNOW, TO TAKE THIS INFORMATION WE GOT TODAY, PLUG IT IN AND SEE, YOU KNOW, IF THERE'S ANY CHANGES WE WANNA MAKE.
SO WE DON'T HAVE ANYTHING UNLESS YOU HAVE SOMETHING.
YOU GOT OUT TODAY'S PRESENTATION.
AND ALSO WHAT WE WANT TO DO IS ACCEPT
NO CHANGES AS RECOMMENDED AT THIS STAGE, AT THIS POINT.
WE'LL HAVE THAT OPPORTUNITY AGAIN.
I HEARD YOU GO GOING ALL IN ON BITCOIN AND GOLD
THERE'S A DOWNSIDE TO THAT TOO.
WE ALSO NEED TO, WE NEED SILVER, THE CFO REPORT, SO WE CAN OVER A HUNDRED BUCKS AN HOUR.
SO THAT, AND WE CAN MAYBE DO THOSE COMMENTS NOW OR LATER AT THE REGULAR BOARD.
[E. COMMENTS FROM THE BOARD OF TRUSTEES]
ANYBODY HAVE COMMENTS THEY'D LIKE TO MAKE? AGAIN, ECHO THE GOOD WORK GUYS.AND RICHARD AND ROGER AND EVERYBODY ON
THAT'S NOT, THAT'S A VERY TEDIOUS PROCESS TO THROUGH, BUT I THINK YOU DID A GOOD JOB OF SHOWING US THE TRANSITION FROM THE OLD TO THE, THE NEWS.
UM, ALL OF US HAVE PARTICIPATED IN THESE SERIES OF MEETINGS.
I WOULD LIKE TO SAY THAT I'M GLAD WE'RE IN A SOFT MARKET WITH OUR INSURANCE.
[F. SET DATE OF NEXT MEETING, TIME, AND LOCATION]
NEXT DATE, UH, MEETING, I KNOW YOU GAVE IT TO ME, ANGIE.AND SO OTHERWISE I WOULD LIKE TO SAY WE CAN ADJOURN THE MEDIA AND MOVE TO THE NEXT, DO WE NEED LIKE A FIVE MINUTE BIO, BRIAN? I DO.