[00:00:01]
NEIGHBORS.'CAUSE I, IT'S ON OUR AGENDA AND I JUST WANT TO YEAH, YEAH.
I'LL FIND OUT THE CHECK TODAY.
SO I THINK WE SHOULD GET STARTED.
[A. CALL TO ORDER]
OF ALL, LET'S HAVE THE ROAD HALL ENG.COMMITTEE CHAIRMAN RICHARD MILLER.
COMMITTEE, VICE CHAIR BILLY GONZALEZ.
HERE WE ALSO HAVE AN ATTENDANCE CHAIRMAN JEFF PATTERSON.
TRUSTEE ERIC SCHRAM, ROGER AND ANTHONY.
UH, SO LET'S STAND FOR THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
SO WE ARE, IT'S TIME FOR THE INDICATION.
WHAT A PRIVILEGE TO BE HERE BEFORE YOU ON SUCH A BEAUTIFUL DAY ON THE ISLAND.
UM, AS THE LORD HAS SEEN IT FIT TO CONTINUE PROSPERING IN EVERY WAY, A WORD OF REMUNERATION WOULD BE UPON YOU.
UM, FOR THE CHAIRMAN, THE VICE CHAIRMAN, FOR THE MAYOR, FOR THE TRUSTEES THAT ARE, AND THE AT ATTENDANTS THAT ARE HERE, THE PROVERBS TELL US THIS.
TO RECEIVE WORDS AND TREASURE COMMANDMENTS, MAKE YOUR EARS ATTENTIVE TO WISDOM.
INCLINE YOUR HEART TO UNDERSTAND.
OR IF YOU CRY FOR DISCERNMENT, LIFT YOUR VOICES TO UNDERSTANDING.
IF YOU SEEK HER AS SILVER AND SEARCH FOR HER AS A HIDDEN TREASURE, THEN YOU WILL DISCERN THE FEAR OF THE LORD AND DISCOVER THE KNOWLEDGE OF GOD.
FROM HIS MOUTH COMES KNOWLEDGE AND UNDERSTANDING.
HE RESTORES US SOUND WISDOM FOR THE UPRIGHT.
HE'S A SHIELD TO THOSE WHO WALK IN INTEGRITY, GUARDING THE PATHS OF JUSTICE.
AND HE PREVAIL PRESERVES THE WAY OF HIS GODLY ONES, THEN WILL DISCERNMENT, RIGHTEOUSNESS, AND JUSTICE AND EQUALITY IN EVERY GOOD COURSE.
SO THIS MORNING, AS WE PRAY, UM, FOR THE LORD TO GIVE DISCERNMENT, TO RE ERATE, TO BENEFIT, TO JUST TOUCH OUR HEARTS FOR CLARITY OF MIND AND FOR WISDOM AND TRUSTING, AND THE UNITY THAT HAS COME TOGETHER HERE FROM THE BOARD TO EVERY ATTENDEE THAT WE WOULD TRUST GOD WITH EVERY DAY.
WE ASK YOU FOR CLARITY OF MIND AND WISDOM IN EVERY DECISION.
FATHER, AS YOU RENU IN EVERY LEVEL, LORD, THAT IS NEEDED.
AND WE ASK YOU THIS IN THE POWERFUL NAME OF JESUS.
THIS IS, UH, PASTOR LILY RODRIGUEZ, UH, FROM THE EAST END.
NOW BACK TO THE, UH, DO WE HAVE ANY, UH, DECLAR DECLARATIONS OF CONFLICTS OF INTEREST MEMBERS, NON-MEMBERS? UH, SO WE'RE GONNA START WITH PRESENTATIONS
[B. PRESENTATIONS AND ANNOUNCEMENTS]
AND ANNOUNCEMENTS.WE HAVE, UH, PRESENTATION ON OUR INSURANCE FROM MCG GRIP.
SO JUST TO INVITE THE WHOLE TEAM, SUSAN, TOM STEEL AND JOHNNY ANO WILL BE HERE TO TALK TO US ABOUT OUR 26 27 RENEWAL.
THANK Y'ALL FOR LETTING US COME BACK.
AND IN FRONT OF YOU, YOU SHOULD HAVE A LETTER THAT WE WROTE, KIND OF SUBMITTING WHAT WE'RE DOING FOR YOUR INSURANCE RENEWAL, ALONG WITH AN ITEMIZATION OF THE LINE ITEMS FOR YOUR RENEWAL.
UM, AND THEN A QUICK REMI, UM, REPORT.
IT'S ALL IN A HANDOUT, UM, SO THAT WE CAN ANSWER ANY QUESTIONS YOU MIGHT HAVE REGARDING YOUR RENEWAL.
AND HOPEFULLY THAT WILL YOU FEEL GOOD ABOUT IT.
UM, JUST AS WE TALKED ABOUT WHEN WE WERE HERE LAST MONTH, WE'VE GOT THE PROGRAM PUT TOGETHER FOR YOU BASED ON THE SAME LIMITS THAT WE HAD IN YOUR EXPIRING PROGRAM.
SO YOU HAVE A $50 MILLION LIMIT FOR PROPERTY INSURANCE.
YOU HAVE A $50 MILLION LIMIT FOR LIABILITY INSURANCE.
THIS ALSO INCLUDES CYBER LIABILITY, AUTO INSURANCE FOR EITHER, UM, 69 VEHICLES
[00:05:01]
ALONG WITH COURT WORKERS' COMPENSATION INSURANCE.BOTTOM LINE, CURRENTLY YOU ARE PAYING $59 AND 94 CENTS FOR EVERY THOUSAND DOLLARS OF REVENUE YOU BRING IN FOR YOUR RENEWAL.
YOU'LL BE PAYING $48 AND 57 CENTS PER A THOUSAND DOLLARS OF REVENUE THAT YOU'RE BRINGING IN, WHICH IS ROUGHLY ABOUT A 28% SAVINGS OVER YOUR CURRENT PROGRAM.
UM, EXCEPTIONAL PRICING BETTER THAN ANYTHING I'VE DELIVERED TO ANYONE THIS YEAR.
UM, AND WE'RE OPEN FOR ANY QUESTIONS YOU MIGHT HAVE.
IF THERE'S ANYTHING THAT YOU WANNA DISCUSS OR ANY ITEMS THAT YOU MIGHT WANT CONSIDER, JUST TO LET YOU KNOW, THIS IS A DO NOT EXCEED NUMBER.
THE REASON IT'S A DO NOT EXCEED NUMBER BECAUSE I DO EXPECT A SLIGHT REDUCTION BETWEEN NOW AND MARCH 1ST.
SO WHEN WE COME BACK TO YOU, LAURA, WE'LL COME BACK TO YOU IN MARCH AND WE'LL HAVE THE ACTUAL NUMBERS.
IT WILL BE BELOW WHERE WE ARE NOW.
I'LL JUST MAKE A COUPLE COMMENTS.
I HAD ASKED, UM, SUSAN TO PUT TOGETHER, UH, THERE'S THIS, A WORKSHEET HERE THAT SAYS, UH, WINDSTORM, UM, YOU KNOW, WE, WE HAVE THIS KIND OF MEETING EVERY TWO OR THREE YEARS, THIS KIND OF DISCUSSION, UM, ABOUT THE LIMITS.
AND, YOU KNOW, AS OUR OUR ASSETS ARE GROWING, I WANTED TO, UH, UNDERSTAND REALISTICALLY HOW MUCH DO WE NEED? AND I, I THINK, YOU KNOW, OBVIOUSLY THAT'S THE THE BIGGEST QUESTION.
YOU KNOW, WE'VE GOT TWO, TWO DIFFERENT LEVELS HERE.
50 MILLION AND 70 MILLION OR 75 MILLION.
AND SO WHAT I ASKED THEM TO DO IS PUT TOGETHER WHAT ARE, I MEAN, WHAT ARE THE ODDS THAT WE WOULD HAVE, YOU KNOW, VERY HEAVY LOSSES.
UM, 'CAUSE YOU KNOW, AS I'VE TALKED ABOUT SEVERAL TIMES IS IS THAT, YOU KNOW, OUR TERMINALS ARE KIND OF BUILT, UH, TO HANDLE WATER BASICALLY ON THE FIRST FLOORS.
AND SO, YOU KNOW, THAT, YOU KNOW, THAT'S ONE OF THE REASONS I ALWAYS WONDER.
UM, YOU KNOW, BUT I WOULD SAY, YOU KNOW, WE NOW HAVE A LOT MORE ASSETS ON THE BOOKS.
SO IF, AND THE, THE EXAMPLE I THINK I HAVE IS, IS IF WE HAD EXCESSIVE DAMAGE TO THREE DIFFERENT TERMINALS, YOU KNOW, AND, AND IT'S AN EXCESS OF 50 OR 75 MILLION, UM, YOU KNOW, THEN WE'RE GONNA BE CAPPED.
AND NOW WE WOULD ASSUME THAT FEMA WOULD COME IN AFTERWARDS.
UM, YOU KNOW, FEMA'S KIND OF UP IN THE AIR RIGHT NOW.
UH, WE'RE NOT SURE WHO'S WHO, WHO IS GONNA BE FEMA, IS IT GONNA BE AT THE STATE LEVEL? AND THERE'S A LOT OF DISCUSSION ABOUT WHETHER OR NOT, UH, IT'S GONNA BE PUSHED DOWN TO THE STATE LEVELS, UM, YOU KNOW, THROUGH TDO OR A SIMILAR, UH, ORGANIZATION.
SO I JUST WANTED IT TO, TO POINT OUT THIS ALSO.
THESE ARE, YOU KNOW, THESE ARE 5,000 YEAR STORMS, A THOUSAND YEAR STORMS AND, UH, YOU KNOW, SOME POTENTIAL LOSSES.
SO I, AND I GUESS THAT'S WHAT WE DID GET A REDUCTION IN PRICE.
I MEAN, I THINK, BUT WHEN WE LOOKED AT THIS BEFORE, IT WAS ABOUT $500,000 DIFFERENCE BETWEEN 75 AND 50.
AND SO I THINK THAT'S, THAT'S COME DOWN A LITTLE BIT AND WE ANTICIPATE THAT COMING DOWN FURTHER.
SO I, I DON'T WANT TO, I MEAN, I WANT YOU TO FINISH YOUR PRESENTATION, BUT I DID WANT TO CAVEAT THE FACT THAT, YOU KNOW, THIS IS, I THINK IT'S NOT WHETHER INSURER, I THINK IT'S, YOU KNOW, AT WHAT LEVEL, AND ROGER WAS TALKING, THIS IS CAT MODELING THAT'S DONE BY ACTUARIES.
SO HE WAS TALKING ABOUT ONE IN A THOUSAND YEAR STORM, ONE IN 5,000 YEAR STORM.
AND MOST PE MOST OF YOUR PEERS ARE INSURING AT THAT 500 TO A THOUSAND YEAR STORM.
SO YOU'RE WELL INSURED COMPARED YOUR PEERS.
ANY QUESTIONS, ANYTHING WE CAN ANSWER FOR Y'ALL? THANKS FOR THE UPDATE.
WELL, AND HERE AGAIN, AS, AS WE MENTIONED THERE, SHE'S, THERE'S ALSO A SCHEDULE HERE OF EACH TYPE OF INSURANCE THAT YOU, CAN YOU GIVE US HER, WE, YOU KNOW, WE KIND OF WENT OVER THIS LAST TIME YOU WERE HERE DID.
UM, BUT, UM, I THINK THAT'S THE, TO ME, UNLESS SOMEBODY ELSE HAS A DIFFERENT, UH, TAKE ON THIS, OUR, OUR OUR BIGGEST DECISION HERE IS THE LEVEL.
AND WE HAVE THIS TO VOTE ON LATER IN ON THE, IN THE AGENDA.
DO YOU HAVE ANYBODY ELSE HAVE ANY COMMENTS OR QUESTIONS? I WAS JUST GONNA SAY, UH, THANK YOU ALL.
UM, Y'ALL COME YEAR AFTER YEAR, Y'ALL WORK REALLY HARD ON OUR BEHALF AND WE VERY MUCH APPRECIATE IT.
AND, AND YES, WE DO HAVE MANY MORE ASSETS AND THE PRICE IS GOING UP, THE UNIT PRICE IS NOT GOING UP.
THE UNIT PRICE HAS GONE DOWN SUBSTANTIALLY.
WE'RE, WE'RE VERY, VERY PLEASED FOR THAT.
AND, AND KEY IN ON WHAT ROGER SAID.
SO NOT ONLY DO YOU HAVE AN OPPORTUNITY NOW IF YOU WANTED HIGHER LIMITS, BUT THE MARKET IS SOFTER NOW.
RIGHT? COUPLE YEARS AGO, IF Y'ALL REMEMBER, WE WERE IN A REALLY HARD MARKET AND INSURANCE IS CYCLICAL.
[00:10:01]
SOFT MARKET'S GOING TO LAST.SOFT MEANING AT LEAST A LITTLE MORE AFFORDABLE.
UM, BUT FORTUNATELY RIGHT NOW WE CAN GET THE ADDITIONAL LIMIT FOR A LITTLE BIT LESS THAN 500,000.
WE'RE ABOUT THE FOUR RANGE OUT OF THIS MORNING.
I GUESS JUST A QUESTION, YOU GUYS, I MEAN, YOU, YOU'VE GOT THE, THE NUMERICAL LOOK HERE THAT SAYS WE'RE KIND OF IN THE BALLPARK OF WHAT MOST PEOPLE INSURE, I GUESS.
DO YOU GUYS HAVE ANY, ANY STRONG, ANY, ANY, OR I GUESS ANY OTHER INSIGHT INTO, UH, KEEPING THE LIMIT AS IT IS OR RAISING IT? IT'S REALLY KIND OF BUSINESS DECISION BASED ON YOUR BUDGET AND HOW YOU FEEL.
UH, BUT YOU'RE DEFINITELY INSURED AT A LIMIT WHERE YOUR PEERS ARE COMPARED TO YOUR VALUES, RIGHT? YOU'RE DEFINITELY IN THAT LIMIT.
QUESTION, UM, ON THE PROPERTY SIDE, IS IT DIVIDED BETWEEN LAYERS, YOU KNOW, WHERE YOU HAVE PRIMARY AND THEN EXCESS LAYERS? YOU YES AND NO.
SO WE HAVE 15 CARRIERS MAKING UP THE LAYER FOR THE $50 MILLION.
YOU'RE NOT GOING TO SEE ALL OF THEM SIGNED ON TO THE BACK OF THE POLICY.
UM, THE WAY THE POLICY IS STRUCTURED, IT IS ONE POLICY FOR A $50 MILLION LIMIT.
THERE ARE 15 UNDERWRITERS THAT ARE ON THAT, UM, GRANT.
AND LAURA MET WITH CHRIS HAYNES, WHO'S THE LEAD UNDERWRITER WITH BOLT INSURANCE.
HE'S, HE'S WHO WE BROUGHT OUT HERE FROM LONDON.
WE BROUGHT THE LONDON UNDERWRITERS TO Y'ALL THE LAST FEW YEARS.
AND BRETT WAS SHOWING THEM ALL THE THINGS YOU'VE DONE WITH THE TERMINAL AND THE PARKING GARAGES AND TAKING DOWN THE GRAIN ELEVATORS AND ALL THE DIFFERENT THINGS AROUND THE PORT.
AND HE TOOK 75% OF THE 50 MILLION LEAD.
AND WE HAVE AN AGREEMENT THAT LIKE IF YOU DO HAVE A LOSS, THERE'S ONE CLAIMS PERSON, ONE CLAIMS PERSON, AND SO ALL THE UNDERWRITERS HAVE TO AGREE TO WHATEVER THE CLAIMS PERSON AND OUR CLAIMS PERSON AGREE TO.
AND DO WE KNOW HOW MANY, HOW MANY LAYERS THERE ARE HERE? THERE'S THERE'S ONE LAYER, BUT 15 UNDERWRITERS MAKE UP THAT LAYER.
SO IF WE WENT TO THE 75 MILLION LIMIT, WE WOULD BRING IN TWO ADDITIONAL CARRIERS.
SO THEN YOU WOULD HAVE A LAYERED PROGRAM.
BUT THE PRIMARY 50 IS WITH ONE POLICY AND IT'S A COMBINED POLICY.
IT'S PROPERTY AND LIABILITY TOGETHER.
AND THEN I GUESS THE, THE ONLY OTHER THING THAT I CAN THINK OF IS, IS, UH, OR THAT NOT THE ONLY THING, WELL, ONE OF THE MOST IMPORTANT THINGS FROM OUR STANDPOINT WOULD BE BUSINESS INTERRUPTION.
AND, UH, YOU KNOW, IT'S IS TREATED UNDER THIS POLICY AND, AND, YOU KNOW, OBVIOUSLY OUR REVENUE LEVELS ARE, HAVE, HAVE EXCEEDED WHERE WE ARE.
UM, AND THAT, THAT WOULD BE THE MAIN CASE, I WOULD SAY TO GO WITH, EXCUSE ME, WITH THE HIGHER LEVELS.
RIGHT? I'M NOT SURE I UNDERSTAND THIS.
SO IT IS A, SO THERE'S TWO, UH, CAT MODELING SYSTEMS IN, IN OUR INDUSTRY, RIGHT? A IR AND RMS. SO THESE ARE ACTUARIAL COMPANIES THAT DO WEATHER RELATED CATASTROPHIC MODELING.
SO THEY TAKE YOUR VALUES IN GALVESTON, TEXAS, AND THEY PUT IT INTO THE MODELS AND THEY SAY, ONE IN EVERY 50 YEARS, YOU'RE GONNA HAVE A 20 MILLION CLAIM, $20 MILLION CLAIM, ONE IN EVERY 500 YEARS, YOU'RE GONNA HAVE A $32 MILLION CLAIM.
OKAY? ONE IN EVERY THOUSAND YEARS YOU'RE GONNA HAVE A 45 MILLION CLAIM.
AND SO THAT'S WHAT THE ACTUARIES TELL US.
TO EXPAND ON THAT, IF YOU LOOK AT THE ONE IN 100 YEAR, THE ONE IN 100 YEAR EVENT IS $9 MILLION.
WE HAVE A SYSTEMATICALLY, WE HAVE A ONE IN 100 YEAR EVENT EVERY SEVEN TO 14 YEARS.
SOMETIMES THE SEVEN YEARS ARE BACK TO BACK
RIGHT? SOMETIMES THEY'RE SPREAD OUT SEVEN YEARS, IF Y'ALL REMEMBER THAT.
WE HAD HURRICANE HARVEY HARVEY, WE HAD HURRICANE IKE, WE HAD HURRICANE HANNAH.
ALL OF THOSE CAME TOWARDS THE TEXAS SIDE.
FLORIDA'S A WHOLE NOTHER STORY.
UM, AND THEY WERE TYPICALLY ONE IN 100 YEAR EVENT, RIGHT? THEY HAPPEN PRETTY MUCH BACK TO BACK TO BACK TO BACK.
UM, BUT THEY'RE STILL DEEMED ONE IN 100 YEAR EVENTS.
YOU'RE, YOU'RE LIKELY TO HAVE A HUNDRED YEAR EVENT OR 250 YEAR EVENT TO GET TO A THOUSAND YEAR EVENT.
IT'S GONNA BE, IT'S GONNA BE A ONCE IN A, LIKE ONCE IN OUR LIFETIME TYPE DEAL.
SO HOPEFULLY THAT GIVES YOU A COMFORT THAT THE LIMITS THAT YOU HAVE NOW ARE ADEQUATE.
UM, AND LIKE JOHNNY SAID, YOUR PEERS ALL INSURED OF THAT LEVEL, RIGHT? SO ONE IN A THOUSAND YEAR, ONE IN 5,000 YEAR EVENT, YOU'RE TALKING ABOUT OUR PEERS OUT HERE, NOT OUR PEERS, INSURANCE PEERS,
[00:15:02]
YES, SIR.I SAW YOUR, UH, CYBER LIABILITY PREMIUMS HAS GONE DOWN FOR THIS.
UH, A LOT OF 'EM ARE GOING UP IN THESE OTHER CATEGORIES.
UH, SEEMS LIKE THAT WOULD BE ONE THAT WOULD REALLY BE GOING UP.
BUT I GUESS THE MARKET, IF YOU DIDN'T HAVE SUCH GREAT CYBER PEOPLE, IT WOULD, BUT Y'ALL HAVE DONE A LOT WITH PROTECTING YOUR INFRASTRUCTURE FROM A CYBER STANDPOINT.
YOU KNOW, YOU'VE GOT ENDPOINT ENCRYPTION, YOU HAVE ALL THE THINGS THAT THEY'RE LOOKING FOR, MULTI-FACTOR AUTHENTICATION.
UM, EVERYTHING ON YOUR APPLICATION SHOWS THAT WHAT YOU'RE DOING TO PROTECT YOUR DATA IS WORKING.
THEY, WHEN THEY TRIED HACKING INTO YOUR SYSTEM, THEY WEREN'T ABLE TO GET CAPTURE YOUR WALLS.
SO THAT'S BECAUSE OF THE, THE ACTIONS THAT WE'VE TAKEN HERE.
AND, AND THE TRAININGS TRAINING WE DO TOO.
WE ALL TAKE KUDOS TO YOUR GUYS IN THE BACK OF THE, THERE YOU GO.
FORMER EMPLOYER, THEY USED TO SEND, EVERY ONCE IN A WHILE THEY'D SEND OUT KIND OF A FAKE EMAIL TO THE ORGANIZATION AND, AND IF YOU CLICKED ON IT, YOU GOT TO GO SEE YOUR SUPERVISOR
BUT IT, BUT THAT WAS A PRETTY GOOD TEST, RIGHT? TO SEE WHO'S GONNA, HOW YOU GONNA REACT TO HOW YOU GONNA REACT TO IT.
AND I, AND I PERSONALLY, I, EH, THAT LOOKS, I MEAN, IT IS JUST THAT HUMAN NATURE TO, YOU JUST WANT TO, IT MAKES YOU THINK, RIGHT? WELL, YOU WANT TO, YOU KNOW, I WOULD BE THE WEAKEST LINK IN MY SECURITY CYBER PROGRAM, SO YOU WANT TO CLICK ON IT AND GET IT OUTTA YOUR INBOX AND MOVE ON.
BUT IT'S, IT'S THAT, BUT IT'S THAT TRAINING THAT REALLY IS IMPORTANT AS YOU SAY.
IN WHICH CATEGORY DOES THE BUSINESS, OR IN ALL, WHERE DOES THE BUSINESS INTERRUPTION INSURANCE? WELL, THERE'S PROPERTY INSURANCE.
SO YOU HAVE BUSINESS INTERRUPTION, YOU ALSO HAVE CONTINGENT BUSINESS INTERRUPTION.
WOULD, YOU KNOW, IT'S POSSIBLE THE TRUSTEES MIGHT BE, UH, COMFORTABLE WITH THE AMOUNT OF VALUE OF PROPERTY INSURANCE, BUT COULD THEY INCREASE IT TO REFLECT WHAT ROGER SAID, THE INCREASED REVENUES ON BUSINESS INTERRUPTION OR SOMETHING? CORRECT.
SO THE INCREASED REVENUES ARE PART OF THE WRITING GUIDELINES.
IT, IT'S JUST LIKE A LOSS, RIGHT? IT'S TREATED AS A, IF WE HAD A LOSS OUT HERE ON PROPERTY, IT'S LIKE OUR, OUR REVENUES FLOW IS PROPERTY, SO TO SPEAK.
SO THAT'S, IT'S TREATED THAT WAY.
SO IT WOULD ALL BE WITHIN THAT 50 OR $75 MILLION TOTAL, DEPENDING ON WHAT JOBS THEY CHOOSE.
AND THAT'S THE QUESTION, IS IT WORTH $400,000 TO US TO ENSURE AN ADDITIONAL 25 MILLION REVENUES? AND THAT, AND THAT, HERE, AGAIN, THAT'S ASSUMING THAT'S THE ONLY THING YOU LOSE BECAUSE YOU, IF YOU GOT A $75 MILLION LIMIT, AND CORRECT ME IF I'M WRONG, BUT YOU A $75 MILLION LIMIT AND WE LOSE $25 MILLION IN DAMAGE OUT HERE MM-HMM
THEN WE'RE STILL ONLY AT $50 MILLION FOR, UH, FOR REVENUE LOSS.
THE NICE THING ABOUT YOUR PROGRAM THAT YOU HAVE NOW IS YOU HAVE, IN THE EVENT OF A WINDSTORM NAMED WIND EVENT, YOU HAVE A MILLION DOLLAR MINIMUM DEDUCTIBLE AND A 5 MILLION MAXIMUM DEDUCTIBLE, WHICH RIGHT NOW IS UNHEARD OF IN THE MARKET TO HAVE A MAXIMUM.
SO YOU HAVE 5% IS YOUR STANDARD WINDSTORM DEDUCTIBLE, BUT TO MAX THAT AT $5 MILLION IS AN ENORMOUS ADVANTAGE FOR THE PORT RIGHT NOW.
DO WE HAVE ANY ADDED EXPENSE COVERAGE IN HERE? YOU DO.
YOU, I CAN ACTUALLY, I HAVE A COPY OF YOUR POLICY WITH ME.
SO MY DAY JOB AS A BANKER, THAT'S MORE IMPORTANT THAN THE LOST REVENUE BECAUSE BANKS ARE MONEY WHEN WE SLEEP JUST FROM THE BOOK RULE ON LOANS.
BUT THE ADDED EXPENSES A CRITICAL, YOU DO, YOU HAVE $5 MILLION WORTH OF CONTINGENT BUSINESS INTERRUPTION COVERAGE.
YOU HAVE $5 MILLION WORTH OF ACCOUNTS RECEIVABLE.
YOU HAVE A MILLION DOLLARS ERRORS IN EMISSIONS.
UM, YOU HAVE 2.5 MILLION IN PROFESSIONAL FEES AND LOSS ADJUSTMENT EXPENSES.
YOU HAVE 500,000 IN ARCHITECT ENGINEERING FEES, WHICH IS REALLY COMES IN IN THE EVENT YOU HAVE A CLAIM.
UM, YOU ALSO HAVE FIVE BRIGADE EXPENSES.
UM, AND THEN THERE'S A, A HOST OF OTHER SUBSEQUENT S ANY THAT AREN'T LISTED AREN'T SUB LIMITED.
SO THAT MEANS ALL OF THOSE ARE INCLUDED AT TAKE YOUR FULL LIMIT, $50 MILLION OR 75, WHATEVER YOU DECIDE.
SO YOU, I'LL FLIP IT AROUND A LITTLE BIT BECAUSE, OKAY, SO WE GO OUT AND GET 75 MILLION AND, UM, YOU KNOW, EVERY PORT AROUND HERE, YOU KNOW, HAS A HUGE LOSS.
SO, YOU KNOW, THIS IS WHERE IT WE'RE GONNA PAY THEN.
I MEAN, WE'RE GONNA PAY MORE IF WE RAISE THE LIMITS
[00:20:01]
AND THEN THERE'S A CATASTROPHIC LOSS IN THE INDUSTRY OR JUST GENERALLY SOMETIMES NOT EVEN THE INDUSTRY, BUT JUST IN THE INSURANCE.SO THERE'S A LOSS OF OTHER PLACES WE PAY FOR THAT.
AND SO THIS IS ONE OF THE REASONS WHY THESE PREMIUM, YOU KNOW, YOU CORRECT ME IF I'M WRONG.
I'M NOT THROUGH YOUR JOB, BUT, BUT I MEAN, YOU KNOW, IF, IF, IF THERE'S A LOT OF DAMAGE TO OTHER PLACES WE PAY ON THE RENEWAL, WE, UH, WE, WE, SO THAT, THAT'S, THAT'S THE DOWNSIDE.
YOU GET 75 MILLION, SO YOU'RE AT 75 MILLION, YOU COULD CHOOSE TO DROP IT, YOU KNOW, WHEN THERE'S A LOT OF LOSSES IN THE INDUSTRY AS WE'VE SEEN, YOU KNOW, WE'VE HAD INSURANCE GO UP MM-HMM
AND THAT'S BECAUSE OF, YOU KNOW, NEW ORLEANS GOT HIT REAL HEAVY A COUPLE YEARS AGO.
THAT'S THAT CYCLE WE'RE TALKING ABOUT.
WE PAY ALL, ALL OF US PAY FOR.
SO IF Y'ALL REMEMBER I BROUGHT TO YOU, WE WERE HERE LAST TIME, THAT GLOBAL EVENT, IT SAID, HOW MANY DIFFERENT BILLION DOLLAR EVENTS HAVE WE HAD GLOBALLY IN THE LAST COUPLE OF YEARS? WE TRY TO DO THAT FOR YOU EVERY YEAR WHEN WE'RE DOING YOUR PRE-RENEWAL SO THAT YOU CAN SEE HOW THAT IMPACTS SINCE WHY YOU'RE SPECIFICALLY TALKING TO, HOW DOES THAT IMPACT YOU? EVEN THOUGH YOU HAVEN'T HAD ANY CLAIMS GLOBALLY, IF THERE'S BEEN A LOT GOING ON.
IF Y'ALL REMEMBER LAST YEAR, THE, THE FRANCIS SCOTT CBR WAS A HUGE ISSUE FOR LIABILITY.
UM, AND EVEN THOUGH IT DOESN'T AFFECT ANYTHING YOU'RE DOING AT THE PORT, IT AFFECTED ALL OF OUR LIABILITY RATES.
DIDN'T 2025, WE HAD NO NAMED HURRICANES.
IS THAT RIGHT IN? WE DID NOT IN THIS PART OF THE NO.
NO, BUT WE'RE CHANGING SUPPOSED TO, RIGHT.
WE'RE SUPPOSED TO GET AN EL NINA.
SO THAT GONNA TAKE, SUPPOSED TO HELP US
I'LL SHUT UP, BUT, UM, UM, PLEASE DON'T KEEP ASKING.
NO, AND I, I THINK ONE OF THE THINGS THAT WE'VE HAD, UH, FEELINGS IN THE PAST IS, IS THAT, YOU KNOW, WHAT, HOW DOES, AND I THINK WE MENTIONED THIS WHEN WE HAD OUR CONVERSATION, IS WHAT IF, UM, YOU KNOW, WE, WE PUT IN A CLAIM AND FEMA SAYS, YOU KNOW, SO WE, WE PICKED UP 75 MILLION AND THEN DOWN THE ROAD, BECAUSE THERE'S CATASTROPHIC EVENTS, THE COST OF 75 MILLION IS A LOT HIGHER THAN IT WOULD'VE BEEN A 50.
SO WE SAY, OKAY, LET'S GO BACK TO 50, BECAUSE NOW IT'S A MILLION DOLLAR DIFFERENCE OR SOMETHING.
BECAUSE OF, AND MY CONCERN WAS THAT, AND I THINK MARK BROUGHT THIS UP ONE TIME, WHERE IF YOU, UM, WE, WE WOULD BE IN DANGER OF, UM, HAVING A HIGHER PREMIUM OR LOSS OF INSURANCE BECAUSE WE CANCELED OR LOWERED OUR PRE, YOU KNOW, SO FEMA COMES IN AND SAYS, WELL, WAIT A MINUTE.
YOU USED TO HAVE 75, NOW YOU ONLY HAVE 50.
YOU KNOW, IS THERE AN EFFECT FROM FEMA THAT SAYS, WELL, YOU KNOW, WE THINK SINCE YOU'VE LOWERED THIS, WE'RE ONLY GONNA COVER THAT 25.
SO FEMA CANNOT PUT A LIMIT POINT REQUIREMENT OF YOUR INSURANCE.
WHAT, WHAT THEY CAN DO, WHAT THEY DO, DO, WHAT THEY DO DO, ONCE THEY PAY FOR A BUILDING, THEN THEY REQUIRE YOU TO OBTAIN AND MAINTAIN COVERAGE FOR THAT BUILDING FOR ETERNITY.
SO IF, IF ONE OF THE TERMINALS IS HIT AND THEY PAY $10 MILLION, THEN THEY SAY YOU HAVE TO MAINTAIN THAT AT LEAST THE $10 MILLION LIMIT ON THAT BUILDING AND THEY AUDIT YOU.
SO WE JUST HAD TO PROVIDE INFORMATION ON HURRICANE KATRINA FOR SEVERAL OF OUR CLIENTS THAT WERE HIT IN 2005.
FEMA HAS COME IN AND AUDITED THEM AND 20 YEARS LATER AND SAID, WE STILL NEED TO MAKE SURE THAT YOU'RE OBTAINING AND MAINTAINING INSURANCE.
PROVIDE US PROOF OF INSURANCE COVERAGE.
IT DOESN'T HAVE A LIMIT TIED TO IT, WHICH IS WHAT THEY'RE SAYING.
IT HAS AN OBTAIN AND MAINTAIN REQUIREMENT AND IT GOES ON FOREVER.
SO WITH THAT, THERE WOULDN'T BE ANY, WE GO TO 75 AND SOME YEARS LATER IT GETS KIND OF, WE'RE LOOKING AT COSTS AND FOR WHATEVER REASON, WE COULD LOWER THAT TO, WE COULD LOWER IT BACK WITHOUT PENALTY.
OBTAIN AND MAINTAIN INSURANCE YOU OBTAIN AND MAINTAIN ONCE THEY PAY YOU FOR I MAINTAIN.
WE'LL, UH, DISCUSS IT MORE IN A MOMENT AND HAVE A VOTE ON WHAT WE MIGHT RECOMMEND THE FULL BOARD.
[C.1 Approval of Minutes]
UH, THE NEXT SECTION, GENERAL BUSINESS, WE'RE GOING TO, UH, HAVE THE APPROVAL OF THE, OF THE MINUTES.IS THERE A MOTION FOR, SO SHEILA, SO MOVED.
UH, ALL IN FAVOR? OPPOSED? UH, NOW IT'S TIME FOR PUBLIC
[C.2 Public Comments]
COMMENTS.MR. TED O'ROURKE IS THE ONLY MORNING COMMENTS I HAVE.
[00:25:01]
OF BE BRIEF, BUT I WANT TO BE VERY RESPECTFUL TOO.AND, UH, I REALLY FEEL LIKE THAT PROBABLY MOST OF Y'ALL READ THAT THE ARTICLE THAT MY WIFE HAD IN THE PAPER LAST WEEK.
UM, I WANNA BE MORE RESPECTFUL THAN I THINK OUR COURT DIRECTOR AND OUR ATTORNEY AND OUR CHIEF OF POLICE WERE WITH HER WHEN AT THE END OF THAT MEETING TO BE CARRIED ON A CONVERSATION.
SHE'S VERY CIVIL AND, AND, AND HAVE HER ESCORTED OUT OF THIS BUILDING WAS A COMPLETE UNNECESSARY THING TO HAPPEN.
YOU DON'T WANT TO TALK TO CHARLOTTE, YOU CAN JUST WALK AWAY.
UH, THERE'S NOBODY THAT'S MORE PASSIONATE ABOUT THE COURT THAN CHARLOTTE.
SHE'S CONCERNED ABOUT WHERE THINGS GO ALL THE WAY FROM THE BEGINNING.
YOU CAN TELL THROUGH THE RECORD OF HER OPEN RECORDS REQUEST, WHETHER IT WAS ROGER REESE OR PREVIOUS COURT RECORDS OF HER CONCERNS ABOUT THE COURT.
AND RIGHT NOW, I THINK ONE OF THE THINGS THAT SHE'S CONCERNED ABOUT MAINLY IS THE, THE TRAFFIC, THE ENVIRONMENTAL ISSUES.
AND ONE OF THE MAIN THINGS SHE'S CONCERNED ABOUT IS Y'ALL WIPING OUT THE HISTORY WHEN YOU DID THIS NEW THING FOUR OR FIVE MONTHS AGO, THAT SHE WAS ASSURED THAT, OH NO, THAT'LL ALL COME BACK.
SHE'S DISCUSSED THAT WITH THE STAFF UP HERE.
A RESULT OF HER HISTORY IS THAT SHE GOT ON THIS BOARD IN 1997.
SHE WAS THE FIRST FEMALE PORT COMMISSIONER IN THE STATE OF TEXAS.
SHE SERVED AS THE VICE CHAIR FOR SIX YEARS.
SHE GOT ON, THERE WAS LITERALLY NO CRUISE BUSINESS WHEN SHE GOT OFF.
WE HAD ROYAL CARIBBEAN, CARNIVAL PRINCESS DISNEY AND THE CRYSTAL HARMONY FALLING OUT BOARD WITH A TERMINAL AND A HALF.
WE HAD THE ELEVATOR BEAD WAS HERE.
I TOOK THE BA OUT OF THE SEATS WITH THE ELEVATOR RIGHT NEXT TO THE SHIP.
WE HAD TO GO THROUGH GRAIN TO GET ON THE BOAT.
BUT SHE, HER AND HER GROUP THAT SHE HAD BACK THEN WERE VERY INSTRUMENTAL.
AND SHE LOVES THIS BOARD AND SHE'S CONCERNED ABOUT THE TRAFFIC ISSUES.
AND I KNOW THIS BOARD IS TOO, AND SHE'S CONCERNED ABOUT THE ENVIRONMENTAL ISSUES.
AND HOPEFULLY THIS BOARD IS TOO, BUT DON'T EVER UNDERESTIMATE HER.
I WASN'T GONNA COME TODAY, BUT THE DISRESPECT FOR HER AND HAVE HER ESCORTED OUT OF THIS BUILDING, THAT'S ABOUT AS LITTLE A PERSON AS YOU CAN IMAGINE.
I'VE ALWAYS HATED BULLIES SINCE SECOND GRADE AND I TOTALLY JUST HATE THAT, THAT YOU WOULD DO THAT.
ALRIGHT, SO UNDER BUSINESS ITEMS, UH, MARK, YOU GOING GIVE
[D.1 CFO REPORT/CONSENT AGENDA]
US A, A REPORT OR TWO.WELL, WE'RE STARTING THE YEAR ALL AND SENATOR, AND THE INFORMATION WE'RE GIVING YOU IS JUST FOR THE MONTH OF JANUARY.
SO JANUARY OUR, OUR NET INCOME $5.1 MILLION, UM, SLIGHTLY UNDER BUDGET WE'RE 2 MILLION OVER PRIOR YEAR.
RESULTS, OPERATING REVENUES WE'RE 10.8 MILLION, SLIGHTLY UNDER BUDGET.
OUR YEAR TO DATE OPERATING EXPENSES 3.5, IT'S, WE'RE WELL UNDER BUDGET THERE, BUT THAT'S LOOKING AT WHAT'S GOING ON.
IT'S PART OF THE REVERSAL OF ACCRUALS IN DECEMBER AND IT'LL BE, IT'LL GET CAUGHT UP OVER THE NEXT COUPLE OF MONTHS.
IT'S JUST THE TIMING DIFFERENCE BETWEEN THE BUDGET AND THEN HOW WE HAVE TO ACCRUE CERTAIN THINGS INTO DECEMBER.
AND, AND IT'S, IT'S PARTICULARLY SALARIES.
WE HAD TO, WE HAD TO ACCRUE 17 DAYS IN DECEMBER AND THEN IT GOT REVERSED OUT.
THAT GOT REVERSED OUT IN JANUARY ALONG WITH THE, UH, THE DAYS WE HAVE IN JANUARY.
SO IT, IT MAKES IT LOOK STRANGE.
OH, YOU KNOW, AS WE GO THROUGH IT ALL EVENS OUT.
UM, BECAUSE ANYWAY, THAT'S PRETTY MUCH WHERE WE ARE THIS MONTH.
HERE'S A LOOK AT OUR, UM, OPERATING INCOME.
UM, YOU DO NOTICE THAT DEPRECIATION HAS GONE UP OVER PRIOR YEAR.
JANUARY PRIOR YEAR IS 1 MILLION.
THIS YEAR FOR THE MONTH IT'S 1.5 MILLION
[00:30:02]
AND IT'S A REFLECTION OF THE ASSETS THAT WE'VE ADDED OVER THE COURSE OF 2025.HERE'S OUR FINANCIAL REVENUES TO DATE.
CAN SEE WHERE WE'RE, WE'RE, YOU KNOW, WE'RE RUNNING, THERE'S SOME FLUCTUATIONS, BUT A LOT OF THAT, THAT'S TIMING.
UH, PARKING SLIGHTLY UNDER, UH, WARPAGE.
WELL, WE BUDGETED FOR SOME, UH, WE BUDGETED FOR SOME WIND AND FERTILIZER.
YOU KNOW, IT'LL COME AND JUST DIDN'T, WASN'T DID COME IN JANUARY.
HERE'S OUR YEAR TO DATE REVENUES.
THIS WILL GIVE YOU JUST, UH, THIS IS TOTAL REVENUES.
THIS INCLUDES A NON-OPERATING INCOME.
SO IT GIVES YOU A PIE CHART OF WHERE, WHERE EVERY WELL GIVES YOU AN IDEA OF WHERE EVERYTHING IS.
IT JUST, AND OBSERVATION, I THINK IN, IN LAST YEAR, I THINK WE, YOU KNOW, PARKING REVENUE EXCEEDED THE PASSENGERS.
YOU KNOW, PARKING WAS OUR NUMBER ONE REVENUE.
I THINK THIS YEAR IT'LL BE, PASSENGERS WILL BE MORE, WE'RE PROJECTING TO BE MORE THAN PARKING.
WE ALSO HAVE THE, THE, UH, CAPITAL COST RECOVERY IN, IN THE PASSENGER REV PASSENGER.
SO THAT, THAT, THAT HELPS SET UP QUITE, YEAH, THAT BOOSTS PASSENGER REVENUE UP.
THEN OUR FINANCIAL EXPENSES, UH, FINANCIAL EXPENSES WITH THE EXCLUSION OF, UH, LABOR AREN'T RUNNING FAIRLY CLOSE TO ALL ONE AT SOME FLUCTUATION, BUT NOTHING REALLY MAJOR.
WHAT WE HAVE IN JANUARY, WE HAVE FLUCTUATIONS, UH, DUE TO TIMING.
AND ACTUALLY I DON'T GET EXCITED ABOUT ANY OF THESE TYPE, UH, FLUCTUATIONS UNTIL AFTER THE END OF THE FIRST QUARTER.
BY THEN, EVERYTHING SHOULD BE LEVELED OUT AND WE SHOULD BE GETTING OVER THE, UH, SOME OF THE CARGO THAT WE DON'T THINK IS COMING IN, IT'S COMING IN OR DIDN'T COME IN IN JANUARY, BECAUSE WE'RE GUESSING THAT WHEN CARGO'S COMING IN.
AND THAT PART OF THAT DRIVES OUR, OUR, UH, EXPENSES MARK ON, UH, IN 2025, IN 2026 THERE.
SO THE NUMBERS LOOK VERY, VERY CLOSE.
SO THAT SORT OF SHOWS THAT THAT'S A JANUARY THING.
JANUARY'S ALWAYS, JANUARY'S ALWAYS A LITTLE DIFFERENT.
I HATE BECAUSE BECAUSE OF WHAT WE ALL THE ACCRUALS WE HAVE TO MAKE IT YEAR END.
AND THEN THE, THE CRUS REVERSE OUT AND, UH, IT JUST STILL, STILL PUTTING OUT THE CASH.
WE'RE STILL PUTTING THE CASH IS STILL GOING OUT THE DOOR, CASH IS GOING OUT.
UH, HERE'S OUR YEAR TO DATE EXPENSES.
AND THEN PRODUCT LINE SUMMARY THERE AGAIN, WE ADJUSTED THE ALLOCATIONS.
SO YOU, YOU SEE MORE OF THE ALLOCATIONS GOING INTO, UH, CREWS AND HAD BEEN BEFORE PART AND IT'S, YOU CAN SEE HOW IT'S DOING.
UH, YOU CAN ALSO SEE THAT DEPRECIATION WHERE DEPRECIATION IS INCREASED IN, IN THE CRUISE CATEGORY.
UH, SO BOTTOM LINE AS NET INCOME AFTER ALLOCATIONS AND DEPRECIATION BY, UH, PRODUCT LINE, THAT GIVES YOU AN IDEA OF WHERE WE'RE REALLY, UH, IF YOU LOOK AT THE FOUR ALLOCATIONS, UH, THAT GIVES YOU AN IDEA OF WHAT EACH PRODUCT LINE IS ATTRIBUTED.
MOVING ALONG, TRAVEL TRAINING AND DEVELOPMENT, WE'RE RUNNING ABOUT $6,000 UNDER BUDGET RIGHT NOW.
UM, WE'VE ACTUALLY, THAT'S, I'M PLEASED TO SEE IT.
UH, WE'RE 36,000 OR 30,000 BELOW BUDGET.
WHAT'S HAPPENED IN THE PAST, CERTAIN DEPARTMENTS HAVE BOOKED A LOT OF THEIR TRAINING IN JANUARY.
NOW I BELIEVE THEY'RE BOOKING IT CLOSER TO THE EVENTS AS THEY DETERMINE WHO'S GONNA DO WHAT TRAINING OUR CASH POSITION.
UM, WE'LL LOOK AT THE SLIDE ON THAT IN A MINUTE.
AND OUR, UH, CHECKS TO LOCAL VENDORS AND THERE'S A TAB
[00:35:01]
IN HERE THAT SHOWS WHAT'S GOING ON WITH LOCAL VENDORS.UH, I BELIEVE IT'S, AGAIN, IT'S TAB FOUR.
IT HAS A SCHEDULE, IT'S TAB FIVE.
IT HAS A SCHEDULE OF SAY THAT I THINK I WOULD TAG IT SO WE CAN GO RIGHT TO IT.
THERE'S ONE OF THE, A TAB IN THERE THAT SHOWS HOW WE CALCULATE THE, UH, AND LIST THE LOCAL VENDORS THAT ARE INCLUDED IN THERE COUNTS OVER 90 DAYS.
UH, WHEN WE CREATED THAT REPORT, IT WAS 185,000.
AS OF TODAY, IT'S 118,000 OVER 90 DAYS.
SO WE ARE, UH, GOOD NEWS IS THE VAST MAJORITY OF OUR IS RUNNING ZERO TO 60 DAYS.
UH, 83% OF IT'S 30 DAYS OR LESS, 15%, 60 DAYS OR LESS.
AND THEN WE'VE GOT, UH, ABOUT 1.5% THAT'S OVER 60 DAYS.
AND ACTUALLY IT'S LESS THAN THAT BECAUSE THAT 189 HAS GONE DOWN TO 118,000 MARK.
THERE WAS AT LEAST I THINK ONE CRUISE LINE OVER 90 DAYS WITH A SUBSTANTIAL PAYMENT.
THAT'S, THAT'S STARTING UP AND GETTING, THAT'S MSE.
AND WE'RE THEN THAT MAKES SENSE.
IT'S GETTING, GETTING THAT PROCESS SET UP AND, AND GOING THROUGH, UH, WE HAD TO SET IT UP IN OUR SYSTEM, THEN WE HAVE TO GET FAMILIAR AND GET EVERYTHING SET UP TO THEIR SYSTEM.
THEY HAVE TO GET FAMILIAR WITH WHAT WE'RE BILLING AND WE'RE IN CONVERSATIONS WITH THEM TO GET EVERYTHING CAUGHT UP.
THAT'S, THAT'S WHAT, THAT'S THE ONE THAT YOU'RE SEEING THAT'S, THAT'S, UH, WE'RE HAVING, IT'S ONE LITTLE, ALRIGHT, HERE'S OUR CURRENT CASH POSITION.
ANYONE HAS ANY QUESTIONS ON THAT? I'LL BE HAPPY TO
COULD YOU, UH, TALK A LITTLE BIT ABOUT OUR, UH, JUST, JUST A LITTLE BIT ABOUT THE, UH, CASH THAT WE STILL HAVE FOR CT 16 FOR BOTH THE BUILDING AND THE GARAGE? WELL, MOST OF THE CASH WE HAVE LEFT OVER FROM CT 16 IS RETAINAGE.
AND AS, UH, JEFF GETS THROUGH GOING THROUGH THE, AND REVIEWING AND WE'RE ABOUT TO RESTART, RELEASING SOME LARGE CHUNKS OF RETAINAGE.
SO IF HE LOOKS FORWARD IN THAT, DOES HE BELIEVE THERE'S GONNA BE A MATERIAL AMOUNT LEFT OVER? NO.
THERE'S NOT GONNA BE A MATERIAL AMOUNT LEFT OVER.
NOW IF WE GET WHEN AND IF WE GET THIS MONEY BACK FOR THE TARIFF, WE'LL HAVE, UH, WE'LL HAVE SOME MONEY COME IN.
BUT, UH, I MEAN, SUPREME COURT REALLY JUST MUDDY THE WATERS EVEN MORE.
WELL, I MEAN, I THINK WE'LL TALK ABOUT THAT MAYBE IN AND CLOSED SESSION LATER.
AND WE'RE, WE'RE LEGAL STRATEGY.
WE JUST, I THINK WE JUST GOT KICKED UPSTAIRS TO WASHINGTON WITH OUR REQUESTS.
AND, AND ANY REFUND WILL PROBABLY COME WITH INTEREST.
OTHER QUESTIONS ABOUT THIS? OKAY.
UH, AS OF JANUARY 31ST, WE HAD 126 EMPLOYEES COMPARED TO A BUDGETED NUMBER OF, UH, A HUNDRED AND, WELL, WAIT, LET ME BACK UP.
38 IN 2025, WE HAD 126 EMPLOYEES THIS TIME.
WE'RE SIX SLOTS THAT ARE STILL UNFILLED.
YEAH, WE'RE ACTUALLY PRETTY, I MEAN, THAT'S A GOOD POINT.
IF I GO BACK HISTORICALLY, WE'RE, WE'RE CLOSER TO OUR BUDGETED NUMBER OF PEOPLE NOW THAN WE HAVE BEEN, YOU KNOW, MAYBE LAST SEVERAL, THE LAST SEVERAL YEARS.
WHICH REFLECTS ON I GUESS THE HIGH, YOU KNOW, SUCCESS IN HIRING AND RETAINAGE AND I GUESS TOO, WE'VE GOT WITH ANOTHER TERMINAL AND ALL THE, WE'VE GOT A LOT OF EXTRA WORK GOING ON, SO WE NEED THE PEOPLE.
SO WE DO, WE JUST NEED TO UPDATE THE SLIDE TO REFLECT, UH, 1 44 AS THE 2026 BUDGET.
[00:40:01]
WE HAVE, YES.THAT SHOULD BE THE 2025 BUDGET.
THAT WAS, UH, THAT DATE CHANGE WAS MISSED.
THAT ONE, UH, MARK AT 1 38, UH, EMPLOYEES WE HAVE EMPLOYED NOW.
THAT SEEMS LIKE THE HIGHEST WE'VE HAD IN A LONG TIME.
WE'RE WE'RE MORE FULLY STAFFED THAN WE'VE FINISHED.
TURNOVER SLOWING DOWN LITTLE BIT.
THAT'S VERY, OKAY, THE MAYOR SLIDE.
WELL, WE'VE PAID YOU 300 OR AT LEAST ACCRUED 382,000.
3 42 AND 3 42 WITHOUT, UH, THAT COUNTS.
THE, UH, THAT'S AFTER WE BACK UP THE 40,000 TO THE SCHOOL DISTRICT.
WE WAIT, WE'RE WAITING ON V'S CALCULATION.
OH, IT'S TOO EARLY IN THE YEAR.
AND I WOULD MAKE A COMMENT, I THINK I SHARED THIS WITH, WITH DR. BROWN AND ROGER, BUT YOU KNOW, WE, WE'VE GOT THE $2.8 MILLION GRANT FROM, FROM TDOT TO DO THE SAFE STREETS IMPROVEMENTS OUT HERE ON, ON, UH, HARBORSIDE ABOUT WHAT, SIX OR SEVEN INTERSECTIONS.
AND I KNOW BACK WITH CITY COUNCIL, WE HAD TALKED ABOUT, YOU KNOW, ONE, ONE WAY THAT THE PORT COULD GET ADDITIONAL MONEY TO THE CITY WAS BY DOING SOME INFRASTRUCTURE PROJECTS THAT BENEFIT THE PORT AND THE CITY.
AND I GUESS IN MY MIND JUST WAS THINKING ABOUT THAT LAST NIGHT, THAT, YOU KNOW, THAT $2.8 MILLION, MOST OF THOSE IMPROVEMENTS ARE GOING TO BE ON CITY PROPERTY, IMPROVING THOSE INTERSECTIONS ALONG HARBORSIDE.
SO IN MY, IN MY MIND THAT, NOT NECESSARILY PUT IT ON THIS SLIDE, BUT THAT'S IN MY MIND, MONEY THAT'S GOING FROM THE PORT.
I, I, 'CAUSE IT'S COMING TO A GRANT, BUT IT'S STILL WORK THAT'S BEING DRIVEN BY THE PORT THAT'S GONNA BENEFIT, DIRECTLY BENEFIT THE CITY AND THE CITIZENS.
SO I THINK THAT'S A, I THINK THAT'S A GOOD STEP IN THE RIGHT DIRECTION AS FAR AS HOW WE WE'RE ACTUALLY PHYSICALLY DOING THINGS TO BENEFIT THE CITY THERE.
SO JUST ADD THAT TO THIS SLIDE,
AND ONE THING I THINK WE SHOULD, YOU KNOW, HERE AGAIN, AND WE ARE COORDINATING THIS, BUT, UH, YOU GUYS GOT I THINK OVER 20 SOME MILLION TO WORK ON THE STREETS.
FOR PEDESTRIAN WALKWAYS AND, AND THOSE KIND OF THINGS.
SO I THINK WE WORK REAL CLOSE.
AND THAT'S WHERE THAT MOBILITY COMMITTEE WORKING WITH THE CITY ON THAT 24 MILLION FROM LIBERAL COMMUNITIES HELPFUL.
I THINK THERE'S GOOD OVERLAP THERE.
THE AREAS THAT WE'RE LOOKING AT.
THERE'S A LOT OF GOOD LONG TERM PARKING FEE.
UM, UH, IS THAT, SEEMS LIKE THERE SHOULD BE A NUMBER IN THERE, MARK, FOR THE LONG TERM PARKING.
THERE SHOULD BE A AMOUNT IN THERE.
HONOR, APOLOGIZE THAT IT'S NOT IN THERE.
IS THAT THE PREVIOUS ONE? THAT'S THE LONG TERM PART TO BE, THAT'S THE DOLLAR A DAY.
IT, I DIDN'T NOTICE IT WASN'T THERE.
BUT SO WE'LL HAVE THAT COLLECTED AND IN THE TOTAL SIX DOESN'T.
I KNOW, VIC, YOU'RE GONNA NEED TO REDO YOUR CALCULATION.
I DIDN'T KNOW THAT, BUT YOU'RE RIGHT.
YOU SHOULD RUN THAT BY MY ACCOUNTANT HERE.
WE'LL HAVE, WE'LL HAVE THAT FOR YOU HERE.
WE LISTED THE TWO DOCKET DISCOUNTS.
I JUST, BRETT WAS REMINDING ME THAT DAVID MCALLISTER IS GONE.
THIS IS THE LAST TIME WE'LL GIVE A DOCKET DISCOUNT TO THIS ONE.
SO IT WAS WILL CEASE BE GIVEN A DISCOUNT THERE.
OTHER QUESTIONS ON THIS? IF NOT, WE CAN MOVE ON TO, UH, TASK NUMBER.
WE CAN MOVE ON OVER TO THE, UH, TAB NINE AND LOOK AT THE CAPITAL MASTER CAPITAL.
[00:45:05]
NOW WE'VE LOOKED AT THIS A GOOD FIT OVER THE LAST FEW WEEKS.UH, THE ONLY CHANGE THAT'S OCCURRED ON THIS, IT'S NOW REFLECTING MONIES THAT WERE SPENT IN JANUARY.
WE'VE INCREASED THE ACTUAL EXPENDITURES WE HAD JANUARY.
WE HAVE NOT CHANGED ANY OF THE PROJECTS.
IT'S JUST SOME OF THE PROJECTS HAVE HAD DOLLARS SPENT ON THEM.
AND THAT'S WHAT WE'RE REFLECTING.
THAT'S THE ONLY CHANGE THAT WE HAVE IN THIS, IN THESE SHEETS.
AND THESE ARE MOSTLY ONGOING PROJECTS.
THESE WERE THE ONGOING PROJECTS AND THIS IS THE, UH, NEW ONE, NEW SHEET.
AND YOU'LL NOTICE, YOU KNOW, WE HAVE THE FIRST SECTION THAT HAS FIVE YEARS.
AND THEN WHEN YOU JUMP TO THE LAST FEW PAGES, THAT GOES ON OUT TO 2047.
THIS IS JUST, YOU KNOW, A SUMMARY OF EACH YEAR, OBVIOUSLY EACH YEAR, THE WAY IT'S STRUCTURED IN THE MASTER PLAN MM-HMM
WE FEEL THE FIRST FIVE YEARS IS, YOU KNOW, OBVIOUSLY MORE DETAIL ON THAT.
WHAT IS THE COATING ON THE PARKING GARAGE? WHAT MEAN, WHAT'S THE BLUE COATING ON THE PARKING GARAGE? 14.
IT'S YOUR CODE SAYS, I THINK IT SAYS CONTINUATION OF OVERLAP TO EXISTING MASTER PLAN PROJECTS.
THAT'S, THAT'S WHAT THE LEGEND SAYS.
IS THAT CT 16, YOUR HONOR? NO, IT CT 14 OF THE PARKING GARAGE AT CT 10 AND CT 14 THE PROPOSED PARKING GARAGE THERE, UM, IS THAT CODY IS, YEAH.
AND THEN THE QUESTION MIGHT BE BY THE CHANGE OF NAME, IT WAS LISTED AS A CT 10 OR CT UH, A UH, PARKING GARAGE IN THE OLD MASTER PLAN.
SO YOU, THE NEW MASTER PLAN PROPOSES A CT 14 GARAGE IN THE SAME LOCATION AS THAT OTHER GARAGE.
SO YOU REALLY, YOU REALLY JUST MADE IT BLUE TO SHOW THAT IT'S NEW, IT'S NEWLY NAMED OR THE BLUE REPRESENTS THAT IT WAS SOMETHING THAT WAS IN OUR OLD MASTER PLAN AND IN OUR NEW MASTER PLAN AS WELL.
KEY IS, IT WAS IN THE OLD, IT WAS IN THE, IN THE PLAN.
IT'S JUST THE NAME DID CHANGE FROM THE OLD TO THE NEW.
BUT THE, THE GARAGE IS SHOWN IN THE SAME LOCATION AND THE OLD MASTER PLAN ON THE NEW, BEFORE IT WAS FOR CT 10, THIS ONE, IT'S REALLY KIND OF GONNA BE A SHARED ASSET BETWEEN CT.
SO WHILE WE'RE ON IT, I'M JUST CURIOUS, THE, UH, IT'S PROJECTED TO BE HOW MUCH LARGER THAN THE ONE AT CT 16.
UH, ON THE MASTER PLAN RIGHT NOW, IT LISTS 4,000 SPACES, WHICH IS MORE THAN TWICE THE SIZE.
HOWEVER, THAT'S A, EVEN TALKING INTERNALLY THAT'S GONNA BE DONE OVER PHASES.
I DON'T THINK THERE'S ANY WAY WE'RE GONNA LOOK AT IT DOING A, A 4,000 SPACE GARAGE AND ONE GO AROUND.
BUT, BUT THAT'S, THAT'S WHAT, THAT'S WHAT THE PLAN ULTIMATELY LISTS.
SO THE COST REALLY SAVE A LOT ON FIRST BASE THAT WAY.
ARE ARE YOU GONNA, UH, ARE WE THINKING ABOUT DOING IT THE SAME WAY? IS THIS THE CAST? UH, ULTIMATELY THAT'S GONNA BE, IT'S GONNA DETERMINE ON THE PROJECT CHARACTERISTICS.
SO PRECAST GIVES YOU A LOT OF TIME SAVINGS, SCHEDULE SAVINGS.
UM, IF, UH, YOU KNOW, THERE'S BEEN TALKING IN THE PAST ABOUT PUTTING A COURT OFFICES ON TOP OF A PARKING GARAGE.
IF WE DID SOMETHING LIKE THAT, WE'D LIKE TO HAVE TO LOOK AT A DIFFERENT CONSTRUCTION MECHANISM TO CONTROL VIBRATIONS AND STUFF LIKE THAT FOR, FOR THAT.
SO YEAH, IT, IT, IT COULD BE, UH, ANY OF A COUPLE OF DIFFERENT, I WAS JUST IMPRESSED WITH THE WAY THAT WENT UP.
NO, IT'S, IT'S DEFINITELY, AND FOR THE CRUISE PROJECTS IN PARTICULAR WHERE YOU DON'T HAVE A LOT OF TIME, THAT'S GONNA BE A FAVORABLE CONSTRUCTION METHOD.
JEFF, YOU SAID IT'D BE INCREMENTALLY DONE.
WOULD YOU SAY 2000 AND 4,000? OR WOULD IT BE 3000? 1000 OR, YOU KNOW, UH, THAT WOULD BE REALLY A JULIO QUESTION.
[00:50:01]
WE KNOW THAT YET.IN REALITY, YOU KNOW, IT'S GOING TO COME DOWN TO THE ECONOMICS AND, AND YOU KNOW, WHAT CAN WE AFFORD AND BOARD APPROVES THAT PROJECT.
THERE'S STILL SOME CONTINGENCIES HERE THAT, YOU KNOW, UH, THESE NUMBERS.
AND YOU HAVE TO REALIZE THESE NUMBERS CAME FROM BA OKAY.
AND, UH, YOU KNOW, SO THIS IS BA'S ESTIMATE.
UM, YOU KNOW, YOU REALIZE THAT THERE'S ANOTHER ENTITY INVOLVED, WHICH IS A DEVELOPMENT ARM OF WHOEVER WOULD BE BUILDING THE NEXT TERMINAL.
AND SO THEY HAVE THEIR OPINION OF THE NUMBERS.
I MEAN, OBVIOUSLY THAT'S GONNA CHANGE AND WE DON'T KNOW WHAT IT IS.
AND YOU KNOW, WE THINK, AND TO RICHARD'S POINT, WE THINK IT WOULD, IT MAKES SENSE TO BE ABLE TO DO THIS IN PHASES, BUT THEN THERE'S A REASONS NOT TO DO IT IN PHASES.
AND ALL THOSE THINGS WILL COME OUT AS WE'VE FURTHER DISCUSSED THIS.
WE, WE HAVEN'T AGREED AS A BOARD THAT WE'RE, THAT WE'RE GOING TO, UH, BUILDING, BUILD IT THROUGH A CRUISE COMPANY.
IS THAT CORRECT? WE DON'T AGREE ON ANYTHING.
SO MAKE SURE, YEAH, THAT'S ALL.
AND WHAT WE'RE HOPING HERE IN THE NEXT 60 DAYS OR SO IS THAT, IS DEFINE THIS.
UM, SO WE'LL HAVE MORE ANSWERS TO THE COMPLAINTS.
SHEILA, YOU HAD A QUESTION? YEAH, I, I WAS JUST CURIOUS.
I SAW THE USS TEXAS PARK AND THEN THE MARITIME PARK AND I WAS WONDERING WHAT, WHERE ARE THOSE TWO THINGS? I MEAN, I, YEAH.
UM, AND, AND, UH, SO, SO THE MARITIME PARK, UH, AND I HONESTLY, WHENEVER I LOOKED AT THIS FIRST I HAD A DIFFERENT THOUGHT, BUT, BUT THE USS TEXAS PARK IS REALLY JUST THE AREA AROUND THE BOTTOM OF THAT SLIP 1415.
WHEREAS THE MARITIME PARK STRETCHED ALL THE WAY FROM CRUISE TERMINAL 10 ALL THE WAY INTO CRUISE TERMINAL 16 ON, ON MASTER PLAN IMAGES AND ON, AND THOSE PARKS, WE CAN SLICE 'EM AND DICE 'EM WHICHEVER WAY.
UH, AS FAR AS THE MASTER PLAN'S CONCERNED.
BUT IT COVERS ULTIMATELY ALL, ALL THE GREEN SPACE SHOWN ON THE MASTER PLAN DRAWINGS ARE COVERED BY THOSE LIKE THREE PARTS LISTED.
QUESTION? UH, FIRST OF ALL, UH, SHORT POWER, SHORT POWER ON THIS CAPITAL EXPENDITURE PLAN IN ANY WAY? NO, WE, WE DON'T HAVE ANY CAPITAL EXPENDITURE.
THAT'LL BE HANDLED BY CENTER POINT.
UH, SHELL, AND THERE'S AT SOME, THERE'S A, UH, PRIVATE EQUITY FIRM INVOLVED IN THAT ALSO.
AND SO THE FUNDING IS COMING FROM A PRIVATE EQUITY FIRM IN CONJUNCTION WITH SHELL.
I MEAN, WE STILL, YOU KNOW, WE HAD, WE HAD MEETINGS WITH, WE STILL HAVE ISSUES WITH THE LANGUAGE THAT WE'RE WORKING THROUGH RIGHT NOW.
WE DO HAVE TO GIVE THEM A PIECE OF PROPERTY THAT WE'RE TALKING ABOUT.
AND THEN WE, WE TALKED ABOUT IT, ABOUT THE, WE THINK, WE THINK IT'S GONNA BE RIGHT IN HERE.
CLOSEST TO THAT EXISTING SUB STATION THAT THEY YEAH.
THIS ONE BACK HERE IS, IS GONNA HAVE WORK DONE ON IT AND THEN IT'LL GO FROM, FROM HERE TO OUR SUBSTATION DOWN HERE AND THAT WILL SERVICE THE PORT AND THAT SO THERE'S NO EXPENDITURE OF PORT FUNDS TO MAKE THIS HAPPEN.
AND, AND IT WILL BE A REVENUE PRODUCER FOR THE PORT.
WELL, YOU KNOW, AND, AND AT LEAST, YOU KNOW, AND I, I WANT TO GET TOO FAR AHEAD 'CAUSE WE'RE NOT, WE'RE NOT THERE WITH THE LANGUAGE YET.
BUT I MEAN, THE REALITY OF IT IS, IS, YOU KNOW, THAT IS WHAT WE WOULD COLLECT.
IN OTHER WORDS, IT WOULD BE LIKE A A DOLLAR LEASE MM-HMM
AND THEN THE REVENUES WOULD BE THE LEASE PAYMENTS.
THAT WHICH COULD MAKE IT ABOUT THE MOST VALUABLE PIECE OF REAL ESTATE.
I WAS GONNA SAY EQUALLY IMPORTANT TO THE REVENUE PRODUCING IS THE EMISSIONS.
ABSOLUTELY COULD, WHICH WOULD BE OUTSTANDING.
I WONDER IF THERE'S A, A WAY ROGER, TO GET THAT, TO GET, UM, GET THAT AS A MARKER SOMEWHERE SO WE CAN KEEP IT TOP OF MIND FOR BOARD MEMBERS.
IS IT, UM, SOMETHING THAT WE SHOULD PUT ON THE CAPITAL PLAN WE WE COULD ADD TO THE SCHEDULE? YEAH.
WE COULD ADD TO THE SCHEDULE AND JUST NOT HAVE ANY MONEY ASSOCIATED WITH IT.
I, I THINK THAT'S, I WAS JUST THINKING THE SAME THING BECAUSE I DON'T KNOW THAT THE, YOU KNOW, JUST PUBLIC IN GENERAL, THE COMMUNITY AND WE TALK ABOUT IT AT THE MEETINGS, BUT UNLESS YOU'RE WATCHING THE MEETINGS, I DON'T KNOW HOW MUCH WE'VE RIGHT.
TALKED ABOUT IT, BUT THAT IS DEFINITELY IN THE PLANS IS TO PROVIDE SHORE POWER FOR THE CREWS.
I THINK IT WOULD BE GOOD TO, I THINK PUTTING A, A PLACEHOLDER IN THERE AND YEAH, WE CAN SHOW IT, YOU KNOW, IT'S, WE'VE GOT GRANT DEBT, YOU GOT DIFFERENT WAYS TO THIRD PARTY, EITHER THIRD PARTY, OTHER, I THINK WORTHWHILE SHOW THAT SHORE POWER PROJECT, AS CRAIG SAID, THAT IT GETS THE VISIBILITY OUT THERE.
[00:55:01]
WE REALLY, AS YOU MENTIONED, IT'D BE NOT, 'CAUSE NOT ONLY JUST FROM GETTING UP TO SPEED WITH TECHNOLOGY, BUT THE EMISSIONS AND ENVIRONMENTAL AHEAD.I JUST WANTED TO SAY, IN ADDITION TO THE LEASE, THERE WILL ALSO BE AN EASEMENT, MUCH LIKE WE GIVE TO CENTER POINT FROM TIME TO TIME TO GET THE POWER FROM THE NEW SUBSTATION TO THE TERMINALS.
THERE'S NOT ALREADY AN EASEMENT OUT THERE, TONY, THAT RUN, NOT WHERE THEY INTEND TO BE.
BECAUSE THEY CAN'T BE IN WITH, YOU KNOW, WE HAVE EXISTING CONDUIT STUFF UNDERGROUND NOW, BUT, UM, WITH THAT MUCH POWER, YOU CAN'T, YOU DON'T WANNA PUT IT RIGHT NEXT TO A NATURAL GAS LINE
WELL, THEY'RE GONNA, THEY'RE GONNA WANT IT.
THEY'RE, THEY'RE GONNA WANT THEIR STUFF BE, I KNOW.
IT'S, IT'S, IT'S, WE'RE STILL A LOT OF, THERE'S MOVING PARTS.
DO WE HAVE ANY KIND SPECULATION, ROGER, ON TIMEFRAME WHEN WE MIGHT EXPECT THAT TO BE BEST GUESS? UM, I KNOW IT'S YEARS, SEVERAL YEARS.
WELL, I MEAN, YOU KNOW, YEARS OUT, WE HAVE A COUPLE OF ISSUES RIGHT, OKAY.
THAT WE'RE TRYING TO WORK THROUGH RIGHT NOW.
SO, UH, YOU KNOW, I MEAN, I KNOW THAT THE, EVERYBODY IS ALMOST READY.
EXCEPT US BECAUSE WE NEED TO, WE NEED TO GET SOME LANGUAGE CHANGED.
AND SO THAT'S WHERE WE ARE RIGHT NOW.
AND WE HAVEN'T, WE HAVEN'T DONE ANYTHING HERE BECAUSE OBVIOUSLY WHEN WE, I FEEL LIKE WHEN WE PUT IT ON HERE, WE WANNA MAKE SURE THAT YOU GUYS UNDERSTAND IT BETTER BECAUSE WE DON'T UNDERSTAND IT TOTALLY AT THIS STAGE BECAUSE OF SOME OF THE TERMS THAT, UM, THAT ARE IN THE, I KEEP GOING BACK TO THE AGREEMENT, BUT THE AGREEMENT HAS TO BE WHAT WE WANT.
MAYBE AS YOU GUYS FIND, BUT YEAH, THINKING ABOUT WE CAN PUT IT IN PLACE OVER PLACE.
BUT I THINK, I THINK THAT'D BE, BECAUSE I THINK IT IS A REAL, I MEAN IT'S SOMETHING WE FULLY INTEND TO DO IN, YOU KNOW, WITHIN THE DECADE, RIGHT? YEAH.
I MEAN IT'S DO WE GET OUR TURN? I MEAN, THERE'S A MEETING BEHIND EVERYBODY WANTS TO MAKE THIS HAPPEN.
WE JUST, THERE ARE A COUPLE THINGS THAT WE CAN'T DO RIGHT NOW.
UM, THE OTHER QUESTION I HAD IS THE PIER 19, UH, THAT THE REAL ESTATE COMMITTEES WORKING ON, IS THAT IN HERE ALSO? THAT CHANGE? THAT WOULD, SO THERE WAS, THERE WAS, UH, UH, ONE PROJECT THAT WAS IN THE OLD MASTER PLAN AND ONE IN THE NEW ONE.
AND THERE I THINK IT'S LABELED, UH, UH, GREEN BELT.
IT'S MP FOUR WATER BELT, WATERFRONT GREEN BELT CONNECTING EAST AND WESTPORT.
AND UH, IF I RECALL THE FIGURE IN THE MASTER PLAN DOCUMENT CORRECTLY, IT KIND OF STRETCHES FROM THAT PIER 19 ALL THE WAY DOWN IN FRONT OF CT 25 AS WELL BECAUSE THE MASTER SHOWS A LOT MORE GREEN DOWN IN THAT AREA.
I THINK WHAT YOU SEE CURRENTLY IN THE MASTER PLAN IS, IS PRIMARILY PARKING AND LANDSCAPING.
UM, IT'S, IT'S NOT REPRESENTED IN PROPOSALS THAT WERE BEING WORKED DONE IN THE
THAT WOULD BE SOMETHING BECAUSE THIS KIND OF CAME IN AFTER THE MASTER PLAN.
IT'S INCLUDED IN THAT, THAT THIS MAY BE A SUBSET.
BECAUSE IT'S JUST, JUST HIGH TRIAL OFF PIECE AND, AND WHETHER YOU KNOW THIS LIKE, LIKE THE MASTER PLAN DEPICTS IT STRETCHING FROM P 19 ALL THE WAY DOWN IN FRONT OF CRUISE 2025 AS FAR AS THEIR AREA'S CONCERNED.
WE, UH, YOU KNOW, UH, HAD, JUST TALKING WITH PEOPLE, YOU KNOW, WHAT WOULD IT COST TO DO SOMETHING LIKE THE STOCK PLANT SHOWS DOWN THERE AND THE NUMBER, UM, WAS UH, WAS DEFINITELY LESS THAN THAT.
BUT IT ULTIMATELY DEPENDS ON WHAT SCOPE DEPENDS UP BEING FLUSHED OUT AND EVERYTHING ELSE.
SO WHICH ONE DID YOU SAY? WHICH PART? UH, I THINK WHAT JEFFREY SAID IT'S MP FOUR.
IT'S, YEAH, THERE'S, IT'S MP MP FOUR, NOT CIP.
AND, AND REALLY THE CIP AND THOSE MP.
THAT'S LIKE THE ONES THAT CAME FROM OUR OLD CIP PLAN.
MP MP FOUR C MIGHT, THEY'RE UNIQUE.
AND THIS, THESE ARE, UH, BA NUMBERS HERE, RIGHT? UH, CORRECT.
WILL IT BE EXCITING TO GET EVEN MORE DONE THAN THAT PIER 19 AREA AND WE PROBABLY CAN NEXT YEAR 26? YEAH, I THINK THAT WAS THE POINT, WAS THAT THAT AREA 19 WAS KIND OF A LET'S START SOMEWHERE, RIGHT? AND THEN WE CAN CERTAINLY, THE INTENT IS TO, TO DO, YOU KNOW, WAY MORE THAN THAT.
LET'S KEEP 'EM MOVING, LET KEEP THEM MOVING.
WELL, YOU KNOW, HERE, YOU KNOW, I DON'T BE DEBBIE DOWNER, BUT YOU KNOW, YOU KNOW, WE'RE STILL NOT THERE.
[01:00:01]
A LOT OF TENANT THAT, YOU KNOW, NEED TO UNDERSTAND.THAT'S WHERE WE ARE RIGHT NOW.
THE SAUCE PLAN IS ABSOLUTELY HERE'S WHAT WE WANT TO DO.
NOW WE NEED BUY IN FROM EVERYBODY DOWN THERE AND HOW THAT WORKS AND STAKEHOLDERS.
I DON'T WANT TO BRING EVERYBODY DOWN, BUT, YOU KNOW, OH, I UNDERSTAND THAT.
BUT PART OF THAT, THE REALITY OF IT IS WE'RE NOT THERE YET EITHER, BUT A BIG PART OF THAT PROCESS IS THE ENGINEERING ARCHITECT FOLKS WORKING WITH THE TENANTS TO SAY, CAN WE RESOLVE THE ISSUES PART OF, MAYBE WE CAN AND MAYBE WE CAN'T.
AND SO, BUT THAT I THINK MUST WE TALKED ABOUT IS UNLESS WE GO FORWARD AND HAVE THE DISCUSSIONS AND TRY TO FIGURE IT OUT, WE WON'T RESOLVE 'EM.
AND I'VE REACHED OUT TO, TO, UH, YOU KNOW, TRY TO GET THE LOGISTICS OF THIS GOING, WHICH IS, YOU KNOW, THE, UH, VISUAL GALVESTON IS INVOLVED IN THIS AS WELL AS STAS.
AND THEN, YOU KNOW, UH, THERE'S, UM, FUNDERS THAT ARE INVOLVED IN THIS AND I'M, I'M, I'M OF THE SCHOOL THAT, YOU KNOW, I WANNA SEE ALL THAT IN PLACE IN PLACE SURE.
UM, BEFORE WE START MOVING FORWARD.
SO THAT'S, THAT'S THE STEP I'M TRYING TO GO THROUGH RIGHT NOW IS LET'S GET THIS THING FUNDED OR GET INTO A SEPARATE ACCOUNT SO THAT THE MONEY'S THERE.
SO BECAUSE WE'RE GONNA START AS SOON AS WE REALLY TURN, SWITCH, WE'RE GONNA START INCUR COST.
IS SEALY SMITH, WHEN ARE THEY STARTING THEIR PARKING LOT? DO KNOW DOWN THERE? THEY'VE GOT ONE DOWN THERE NOW, RIGHT? SMALL.
WHERE THEY, THE LIFTING PEAK SPACE IS, WHEN ARE THEY STARTING? I, I'LL REACH OUT TO DOUG AND SEE.
I, I HAVEN'T, HAVEN'T TALKED TO THEM IN A WHILE, BUT I, I THINK THEY, I, MIKE DOHERTY TOLD ME THAT THEY GOT, JUST, JUST GOT MOST OF THEIR PERMITS RELEASED BECAUSE IT, IT'S TWO SEPARATE, UM, CLASSIFICATIONS ZONING.
I THINK WE CHANGED THEIR ZONING ALREADY.
SO THEY'RE THROUGH ALL THE APPROVALS THAT THE CITY, EXCUSE ME, THEY'RE THROUGH ALL THE APPROVALS AT THE CITY.
YEAH, I I THINK, UH, WE, WE CHANGED THEIR ZONING RECENTLY, SO THEY CAN DO THIS PARKING LOT.
I'M NOT SURE WHERE THEY'RE, BUT UH, THAT'S RIGHT DOWN IN THE MIDDLE OF THIS, THIS AREA.
IF I COULD BACK UP JUST A LITTLE BIT.
IF YOU FAMOUS CITY, WHAT WAS LEFT OFF FROM THE LONG TERM PARKING WAS $149,243.
SO THAT PUTS YOU AT, UH, ROUGHLY HALF.
BUT IT'S NOT A NUMBER THAT'S GONNA HAPPEN EVERY MONTH.
NO, IT'S GOT, BECAUSE WE GOT, WELL WE'VE GOT A LOT OF, A LOT OF ACTIVITY NOW.
I MEAN, YOU KNOW, WE'VE JUST GONE THROUGH THE MONTH OF JANUARY WHERE WE HAVE A LOT MORE SHIFTS IN HERE OR PASSENGERS AND THEN THAT'LL GO INTO A LOW SPRING BREAK PROBABLY.
UM, AND I DON'T WANT YOU TO GET YOUR HOPES UP
BUT, BUT YOU KNOW, I LOOK BACK FOUR OR FIVE YEARS AGO COMPARED TO WHAT WE BROUGHT IN AND NOW IT'S FANTASTIC.
I REALLY DON'T HAVE ANYTHING ELSE TO ADD TO THAT.
DOES ANY, HAS ANYBODY HAD, OR HAS EVERYBODY HAD A CHANCE TO LOOK AT THE MASTER PLAN ENOUGH TO ASK QUESTIONS THAT THEY MIGHT HAVE? ALRIGHT, SO THEN WE'LL MOVE ON.
UH, WE'RE GOING TO GO INTO BUSINESS ITEM ONLY HERE.
THERE'S ONLY ONE COMMEND FIVE.
SO SOMEBODY MAKE A MOTION TO RECOMMEND CONSENTMENT.
I'D LIKE TO MAKE A, A MOTION, UH, TO APPROVE, UM, RECOMMENDATIONS ABOUT INSURANCE.
BUT I DO HAVE, I WANT, I'D LIKE TO MAYBE DISCUSS, I GUESS THERE'S NO WAY OF JUST SINGLING OUT.
I THINK YOU'RE TALKING ABOUT THE CFO AGENDA.
COULD ONE OF Y'ALL, UH, MAKE A MOTION ON THANK YOU, UH, SHEILA MAKE MAKE AN, A MOTION TO APPROVE THE CONSENT AGENDA.
ITEMS CAN MOVE APPROVAL OF THE CONSENT.
[D.2 Discuss and consider for approval of Port Property, Flood, Liability, Excess Liability, Business Auto, Public Official Liability, Crime, Cyber, Terrorism, and Fiduciary Liability Insurance Policies Scheduled for Renewal for the Policy Period March 1, 2026, to March 1, 2027 - Laura Camcioglu. ]
SO DO YOU WANNA TAKE OFF WHERE YOU LEFT OFF? I, I WOULD LIKE TO, YES,[01:05:01]
YOU CAN GO.IT'S MY UNDERSTANDING WE CAN'T JUST SINGLE OUT LOSS OF BUSINESS AT AND AND JUST INCREASE THAT AMOUNT.
IT'D HAVE TO BE THE TOTAL PROPERTY.
COULD WE SOMEBODY WANT MAKE SOMETHING? YES.
YOU, YOU CAN, BUT YOU CAN ONLY, YOU, YOU CAN'T PICK OUT A CERTAIN PART OF IT.
IT'S, IT'S ALL PART OF THE PROPERTY PACKAGE.
DOES SOMEBODY WANNA MAKE A MOTION THAT WE, THAT WE, UH, APPROVE THIS ITEM AND THEN WE'LL HAVE TO HAVE THE DISCUSSION SESSION? WE'LL MAKE AN MOTION THAT WE'RE GONNA APPROVE THIS.
YEAH, THAT'S, THAT'S, THAT WAS MY MOTION LEVEL.
WE GOTTA DECIDE IF IT'S 75 OR 50.
SO JUST FOR DISCUSS SEPARATE MOTION FOR EACH ONE.
YOU CAN ALWAYS AMEND THE MOTION.
YEAH, I THINK YOU GOTTA PICK ONE.
JUST SO WHICH SHEILA, WHICH ONE ARE YOU? WELL, YEAH, BEFORE I MAKE THE MOTION, WHICH I WILL DO, WHAT IS THE RECOMMENDATION OF STAFF? 'CAUSE I FELT LIKE IT WAS THERE AND THEN IT WAS THERE AND YEAH, I MEAN, YOU KNOW, I HATE TO SPEND MORE MONEY.
I KNOW, BUT YOU KNOW, I JUST FEEL LIKE WITH THE REVENUE LEVEL THAT WE'RE AT, WE NEED TO GO UP.
AND I'D LIKE TO ALSO ADD THAT IN A SOFT MARKET IT WARRANTS GOING UP.
I MEAN, IF IT WEREN'T A HOG, IF IT WERE A HARDER SITUATION, LET'S SAY MAYBE DON'T GO UP BUT 50% IN COVERAGE FOR 10% INCREASE IN PREMIUM.
IS THERE ANY MY, WHILE WE'RE HAVING DISCUSSION, MY, MY, MY CONCERN AND THE REASON I WOULD LEAN TOWARDS THAT IS I JUST DON'T TRUST, I HATE TO SAY THIS, I DON'T TRUST THAT FEMA'S GONNA BE THERE WHEN, WHEN AND IF WE NEED THEM.
SO IT, IT'S A REASONABLE AMOUNT FOR THAT RISK.
AND WE, YOU SAID WE DON'T MEAN THERE'S ENOUGH GOING ON IN WASHINGTON ABOUT FEMA AND WHERE IT'S GONNA BE AND RIGHT.
SO IF Y'ALL ARE READY, WE CAN VOTE ON THIS.
ALRIGHT, SO, ALRIGHT, SO WE APPROVED THAT.
COMMENTS FROM THE BOARD OF TRUSTEES.
YOU WANNA YOURS FOR LATER? I'LL SAY, I'LL JUST SAY I LIKE THE MOTION THAT WAS JUST PASSED.
I THINK IT'S A SMART MOVE FOR A NUMBER OF REASONS.
50% INCREASE IN COVERAGE, 10% INCREASE IN COST.
IT WAS WITH THE STATE OF FEMA.
I THINK IT'S SMART MOVE AND STILL NOT INCREASING OUR INSURANCE PER DOLLARS FOR A THOUSAND NO.
I DO, I WAS CURIOUS WHERE WHAT WE JUST APPROVED COULD INCREASE THE BUDGET.
IT'S GOING TO INCREASE THE BUDGET.
BECAUSE EVEN THE LOWER AMOUNT WAS ABOVE BUDGET.
BUT STILL THE BOARD APPROVES, APPROVES THE BOARD APPROVES THAT.
WHAT WE'LL END UP DOING SOMETIME DURING THE FIRST QUARTER, WE'LL DO IT BUDGET, ADMIT BUDGET.
I DON'T WANT, I'D RATHER WAIT TILL THE END OF THE FIRST QUARTER TO DO A BUDGET AMENDMENT.
BUT FOR INSURANCE WE HAD BUDGETED, UM, THERE'S TWO WAYS.
ONE WAY IS WHAT WE HAVE BUDGETED FOR THE CALENDAR YEAR, WHICH WILL INCLUDE EIGHT MONTHS OF THIS.
AND, AND THAT'S TWO MONTHS OF THE OLD GRADE.
THAT'S, THAT'S THE EIGHT MONTH AMOUNT.
THAT'S NO, THAT'S, THAT INCLUDES THE TWO MONTHS AT THE OLD PREMIUM AND 10 MONTHS AT THE, AT, IN THE NEW PREMIUM.
WHAT WE HAD BUDGETED FOR THE NEW PREMIUM.
THAT'S WHAT WE'RE TALKING MILLION DOLLAR ADJUSTMENT TO THE BUDGET.
SO WE'LL HAVE TO DEAL WITH THAT ONE WHEN WE CAN.
YEAH, MAYBE WE GET THE TARIFF BACK.
WELL THAT WOULD BE, WASH IT OUT WHEN, HOW THE STORM CAME BACK ON THE STORM.
I, I, UH, SAY WE'RE ADJOURNED.
ALRIGHT, SO MAYBE A COUPLE MINUTES.