[00:00:06]
AND THEN ROGER WENT TO GET THE GAVEL.
NOW, NOW WE'RE, NOW WE'RE OFFICIAL HERE.
[A. CALL TO ORDER]
RIGHT.CALL US TO ORDER HERE AT THE 9 35.
WELL, WELCOME EVERYBODY TO THE MONTHLY BOARD'S BOARD OF TRUSTEES MEETING.
UH, GOOD TO HAVE BOARD MEMBERS HERE.
GOOD TO HAVE THE PUBLIC AND THOSE WATCHING US ON TV.
AND ALSO JUST SHOUT OUT TO OUR NEW, UH, NEW MAYOR, JOHN PAUL, WHO WILL SIT IN THE BACK THIS TIME.
BUT I GUESS NEXT, UH, YOU GOTTA GETTING READY TO GO FOR NEXT.
CONGRATULATIONS ON YOUR, UH, YOUR ELECTION.
AND WE LOOK FORWARD TO HAVING YOU JOIN OUR, JOIN OUR MERRY BAND HERE.
SO WITH THAT, ANGIE, CAN I HAVE A ROLL CALL, PLEASE? YES.
HERE, VICE CHAIRMAN LILY GONZALEZ.
HERE, TRUSTEE SHEILA LID STONE.
MAYOR ROGER REESE AND ANTHONY BROWN.
I DECLARE WE HAVE A CORE, YOU STAND FOR THE PLEDGE OF ALLEGIANCE.
MY PLEDGE OF ALLEGIANCE TO FLAG OF THE UNITED STATES OF AMERICA.
AND TWO, THE REPUBLIC FOR WHICH STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LITERACY AND JUSTICE FOR ALL.
DO WE HAVE ANY, UH, CONFLICTS OF INTEREST TO BE DECLARED BY A TRUSTEE? HEARING NONE.
[B. PRESENTATIONS AND ANNOUNCEMENTS]
INTO PRESENTATIONS AND ANNOUNCEMENTS, THE GOOD FOLKS FROM POWER LNG TO TALK TO US NOW, ROGER, IF YOU WANNA DO ANY INTRODUCTION, BUT, UH, IT'S GOOD TO HAVE YOU GUYS HERE.I KNOW WE, WE'VE BEEN TALKING, WE'VE BEEN LOOKING FORWARD TO THIS DATE FOR MANY MONTHS, WELL OVER A YEAR.
SO WE'RE, WE'RE LOOKING FORWARD TO KIND OF GETTING A LITTLE EDUCATION ON, YOU KNOW, LNG IN GENERAL AND, AND WHAT'S, WHAT'S YOUR FOR COMING.
ANYTHING YOU NEED TO SAY? I DON'T NEED TO SAY ANYTHING.
YOU, YOU GUYS GO AHEAD AND ROLL.
I WILL SAY RIGHT UP FRONT, WE WILL BE COGNIZANT OF YOUR TIME.
WE'RE NOT GONNA SPEND A WHOLE LOT OF TIME READING EVERY ONE OF THE SLIDES IN THIS BOOK FOR YOU, BUT IT DOES GIVE YOU A BACKGROUND.
BUT, UH, BEFORE WE GET STARTED, THE FIRST QUESTION YOU MAY ASK IS, WHY AM I HERE? UH, YOU KNOW, I SPENT 34 YEARS IN THE HIGHER EDUCATION AROUND THIS ISLAND FOREVER AT GALVESTON COLLEGE AND OTHER PLACES.
BUT THERE WAS A PERIOD OF TIME AFTER I RETIRED FROM HIGHER EDUCATION THAT ACTUALLY POSITIONED THIS.
I SPENT 10 YEARS AS AN INVESTMENT BANKER WITH HILLTOP SECURITIES.
I WAS HONORED TO BE THE UNDERWRITER ON ALL THOSE BOND DEALS THAT WE'VE TALKED ABOUT UP HERE FOR THE LAST SIX YEARS.
DURING THAT TIME, I'VE REALLY GOTTEN TO KNOW A SENSE OF WHERE THIS PORT IS, WHERE IT'S GOING, THE IMPACT OF IT.
WHEN I WAS IN GEORGIA, I WORKED WITH DOUG MARCHAND AND THE GEORGIA PORTS AUTHORITY THERE IN SAVANNAH FOR EIGHT YEARS, WHO USED TO BE THE PORT DIRECTOR HERE MANY, MANY YEARS AGO.
SO, I'VE GOTTEN A FEEL FOR WHAT THIS IS, AND I'VE DONE A LOT OF PROJECTS IN THE PROJECT FINANCE SPACE.
BUT, BUT TONY, THANK YOU FOR YOUR PROJECT AND THANK YOU FOR THE, WE DID THE SCHOOL DISTRICT PROJECT.
WE ALSO DID, UH, GALVESTON COLLEGES HERE ON THE ISLAND AND OTHER THINGS.
BUT, UH, BUT THESE ARE THE KIND OF PROJECTS I HAVE BEEN WORKING ON FOR 10 YEARS.
AND IN A MINUTE, YOU'RE GONNA MEET THE BRAINS BEHIND THIS OPERATION.
WHO'S STANDING BEHIND ME? AUSTIN TERRY, WE MET IN 2019, AND FROM 2019 FORWARD UNTIL I RETIRED FROM HILLTOP LAST YEAR, WE WORKED ON DOZENS OF PROJECTS TOGETHER IN EXCESS OF A BILLION DOLLARS, UH, PRIMARILY IN THE MIDSTREAM, DOWNSTREAM AND CLEAN ENERGY SPACES.
IT'S THE KIND OF THINGS WE'VE WORKED ON.
SO THAT'S WHAT'S HAPPENING HERE.
AND I, I SAY THAT TO SAY, YOU KNOW, WHY IS THIS OLD FORMER EDUCATOR INVOLVED IN THIS PROJECT? WELL, WE, WE FIRST BEGAN DISCUSSING THE NEED FOR AN LNG PROJECT, AND PARTICULARLY FOCUSED ON EXPORT OPERATIONS, UH, MANY YEARS AGO, UH, AS WE RETIRED.
AND WE BEGAN TO SEE THE EXPANSION IN, IN JUST THAT PERIOD OF TIME WHEN WE WERE GENERATING MORE IN REVENUE HERE THAN WE DID IN OPERATING BUDGETS.
OUR PROFIT OPERATING BUDGETS THREE YEARS AGO WITH THIS PORT.
YOUR SUCCESS HAS BEEN INCREDIBLE.
WE ALSO UNDERSTAND THE WAY TO REALLY CONTINUE TO MAKE THAT SUCCESS WORK AND TAKE ADVANTAGE OF THE RESOURCES YOU HAVE RIGHT NOW, FACILITIES YOU HAVE RIGHT NOW, AND GENERATE MORE REVENUE AND MORE PROFIT, AND MORE ILL LAND, UH, MAN HOURS ON THIS IS THAT THERE WAS A PIECE MISSING.
AND THAT PIECE WE BELIEVE IS L AND G.
UH, WHAT WE'RE PRESENTING TO YOU IS A PLAN THAT JUST WAS NOT PUT TOGETHER YESTERDAY.
WE'VE BEEN WORKING ON THIS PLAN, UH, AUSTIN AND THE TEAM ACTUALLY HAVE BEEN WORKING ON IT FOR CLOSE TO FIVE YEARS.
UH, I'VE BEEN WORKING WITH AN ON IT FOR OVER TWO YEARS AT THIS POINT IN TIME.
IT'S A MODULAR, SCALABLE L AND G PROJECT.
AND I SAY THAT TO SAY YOU HEAR A LOT ABOUT L AND G PROJECTS AROUND THE, AROUND THE AREA, AND MOST OF THESE PROJECTS YOU HEAR ABOUT ARE IN THE MULTI-BILLIONS OF DOLLARS PROJECTS THAT TAKE FIVE OR SEVEN YEARS TO GET PERMITTED, YOU KNOW, 10 YEARS TO FINANCE.
SO THERE'S SOMETHING THAT HAPPENS WAY OUT THERE THAT'S NOT THIS PROJECT.
THIS PROJECT USES A SCALABLE TECHNOLOGY, AND YOU'LL HEAR IN A FEW MINUTES, WE'LL INTRODUCE SOME SSIS, THE LLOYD WHO'S HERE WITH OSIS, ONE OF TEAM MEMBERS.
THIS ALLOWS US TO CREATE A PLUG AND PLAY OPERATION.
WE CAN BRING THIS UP IN MODULAR SCALE FORMAT AND GET IT OPERATIONAL
[00:05:01]
IN A RELATIVELY SHORT PERIOD OF TIME.UH, WE'RE LOOKING TO START INITIALLY WITH ABOUT 400,000 GALLONS A DAY, WHICH IS ABOUT, YOU KNOW, 1.2 MILLION GALLONS, 1.4 MILLION GALLONS A WEEK, WHICH IS A SIGNIFICANT AMOUNT.
BUT ON THE FOOTPRINT WE'RE TALKING ABOUT IS, WE COULD TAKE THAT TO 800,000 OR EVEN MORE SHOULD THE DEMAND PRESENT.
BUT WE HAVE THE CAPABILITY TO DO 400,000 RIGHT NOW WITH 3 MILLION GALLONS OF STORAGE AND PROVIDING SOME SHIP TO SHIP OPERATIONS, UH, AS WE GO FORWARD TOO.
AND WE'LL TALK ABOUT THOSE AS WE, AS WE GO FORWARD, UH, IN ADDITION TO THE WORK WE WANT TO DO ON PELICAN ISLAND.
AND THANK YOU SO MUCH ROGER AND BRETT FOR WORKING WITH US.
AS WE'VE BEGUN TO LOOK AT THE PLANNING OVER THERE.
UH, WE ALSO WANT TO PROVIDE A, UH, SHORTER SHIP OPERATION, MEANING WE'LL BE ABLE TO DIRECTLY LOAD SHIPS RIGHT OFF OF PIER 37 FOR PIER 38, WHILE THEY'RE OFFLOADING.
IN PARTICULAR, THOSE PIERS THAT REALLY WORK WELL IN THE RAILROAD OPERATION.
AND A LOT OF THE VESSELS WE'RE TALKING TO RIGHT NOW THAT WOULD ACTUALLY CHANGE THEIR ENTIRE, UH, SUPPLY CHAIN IF THEY HAD LNG CAPABLE RIGHT HERE, IS THAT WE'D BE ABLE TO LOAD A SHIP AND OFFLOAD A SHIP AT THE SAME TIME.
UH, THIS IN ADDITION, UH, WE'RE GONNA BE LOOKING AT EXPORTING LNGA MARKET THAT NEEDS TO BE TAPPED.
THAT, UH, IS TREMENDOUS, IS THE ABILITY TO GET MANY OF THE COUNTRIES OUT IN THE CARIBBEAN AND THE AREA SOUTH OF HERE OFF OF BURNING DIESEL FUEL TO CREATE ELECTRICITY, GETTING INTO A CLEANER FUEL AND A MORE REALISTIC FUEL.
AND LNG IS THAT FUEL THAT THEY'RE LOOKING AT.
SO PART OF OUR PLAN HERE ALSO INVOLVES LOADING ISO CONTAINERS OFF OF PIER 34, AND THEN ACTUALLY BEING ABLE TO EXPORT THOSE TO THE CARIBBEAN THAT HERE.
SO IT'S EXPORT CARGO, CARGO IN ADDITION TO BUNKERING FOR THE CRUISE INDUSTRIES IN ADDITION TO SHORE SHORE.
THAT'S OUR KEY MODEL THAT WE'RE LOOKING AT TODAY THAT WE WILL GO OVER TODAY.
UH, YOU KNOW, THE, THE INTER THE, UH, MARITIME INDUSTRY HAS BEGAN MOVING TOWARDS CLEANER FUELS, UH, OVER THE LAST 10 YEARS.
UH, AND THAT, THAT IS THE, THE, AN INCIDENT BEHIND LNG.
THAT'S THE, THE EMPHASIS THAT'S MAKING THAT HAPPEN.
FROM OUR PERSPECTIVE, WE LOOK AT IT STRAIGHT AS A CAPITAL OPERATION.
L AND G IS A MORE EFFICIENT FUEL THAN MARINE DIESEL.
IT'S A CLEANER FUEL THAN MARINE DIESEL.
AND IT'S A FUEL SOURCE THAT WE CAN USE TEXAS NATURAL GAS TO PROVIDE.
AND IF YOU'VE WATCHED LATELY, BECAUSE OF THE GROWTH IN THE DRILLING IN THIS AREA, THE COST OF NATURAL GAS AT THE WELLHEAD IS DROPPED IN SOME CASES TO ZERO.
THEY HAVE TO GET THE GAS OUTTA THE WAY TO GET THE CRUDE OUT AND, AND GET TO SELL THE CRUDE OUT.
SO WE KNOW WE HAVE THE NATURAL GAS HERE.
LET'S TURN THAT INTO A REAL RESOURCE FOR DOING WHAT WE WOULD LIKE TO DO GOING FORWARD.
UH, THOSE ARE ISO CONTAINERS, SIR.
THOSE ARE SOME OF THE ISO CONTAINERS YOU'LL SEE RIGHT THERE.
THEY BASICALLY ARE THE EQUIVALENT OF A TUA 20 FOOT EQUIVALENT UNIT.
THEY'LL LOAD JUST LIKE YOU WOULD LOAD A 20 FOOT EQUIVALENT UNIT ONTO SHIPS FOR EXPORTING, UH, IN THIS ENVIRONMENT.
UH, SO YEAH, THAT'S, THAT'S ONE OF THE THIRD LEGS FOR OUR PROJECT.
UH, THIS IS PART OF OUR INITIAL TEAM.
I WON'T GO INTO ALL THE PLAYERS YOU'LL HEAR FROM AUSTIN IN JUST A MINUTE.
UH, BUT, UH, FOR A COUPLE THINGS IN PARTICULAR, I'LL POINT ON DEAN, UH, UH, WALLACE AT THE END.
DEAN IS A FORMER COMMISSIONER OF FINANCE FOR THE US VIRGIN ISLANDS.
HIS COUSIN'S ACTUALLY THE GOVERNOR RIGHT NOW.
WE ARE LOOKING TO ESTABLISH A HUB IN THE US VIRGIN ISLANDS TO BE ABLE TO HAVE LNG OPERATING OUT OF THERE.
AND THEN IT WOULD BE DISTRIBUTED OUTTA THERE TO OTHER CARIBBEAN ISLANDS ACROSS THE AREA.
UH, THERE'S A LOT OF LEGAL WAYS TO DO THAT.
ONE OF THE THINGS WITH THE JONES ACT MAKES US VIRGIN ISLANDS MUCH MORE ATTRACTIVE TO US.
JERRY FRANCE IS OUR CEO, UH, CFO, EXCUSE ME.
TODD HALEY IS, UH, IS, HAS BUILT BILLIONS AND BILLIONS OF DOLLARS WORTH OF PROJECTS FOR ENERGY TRANSFER AND OTHER COMPANIES, UH, OVER HIS LAST 30 YEAR CAREER.
GREG IS OUR GAS TRADER, AND ROLANDO'S GONNA TAKE CARE OF, ROBERTO'S GONNA BE, HE'S GONNA TAKE CARE OF ALL OF OUR LOGISTICS SIDE OF THE HOUSE.
BUT IN JUST A FEW MINUTES, WHEN AUSTIN STEPS UP HERE, YOU'LL SEE THIS MOR MURDERERS ROW OF GUYS WE HAVE BACK HERE.
THEY'RE PART OF OUR KEY PARTNERS THAT ARE MAKING THIS HAPPEN.
BUT IN REAL QUICK SUMMARY IS GOING FORWARD.
WE REALLY BELIEVE, AND I WATCHED, UH, DURING THE LAST YEAR, THE DEVELOPMENT OF THE NEW MASTER PLAN HERE AT THE PORT.
WE REALLY THINK THAT WE ARE ATTACHED AT THE HIP AS IT RELATES TO YOUR NEW MASTER PLAN.
IN PARTICULAR, THAT QUOTE RIGHT THERE TALKS ABOUT ACTUALLY PROVIDING LNG ON THE 90 ACRES ON THE OTHER SIDE OF PELICAN ISLAND.
AND THAT'S WHERE WE'RE LOOKING TO POST.
THAT CAME RIGHT OUTTA YOUR MASTER PLAN.
BUT JUST TO GO REAL QUICKLY THROUGH YOUR MASTER PLAN TO SHOW YOU HOW THIS LINKS, IF IT LOOK AT THAT FIRST GOAL IN YOUR MASTER PLAN, IT TALKS ABOUT INCREASING REVENUES AND MANAGING EXPENSES.
WHAT L AND G DOES FOR US ON THE CRUISE SIDE OF THE HOUSE IS IT GUARANTEES THAT THE NEWEST AND BEST CRUISE SHIPS WILL COME HERE.
WHY? BECAUSE THEY'RE ALL BEING BUILT AS L AND G SHIPS, UH, IN MIAMI.
THANK YOU VERY MUCH, ROGER, FOR ALLOWING ME TO COME AND WORK WITH YOU AT THE CONFERENCE IN MIAMI.
I SPENT TIME WITH MCNAMARA, WHO RUNS, UH, ALL THE FUELING FOR CARNIVAL.
UH, THEY'RE BILLING FIVE NEW LNG CRUISE SHIPS RIGHT NOW AND DON'T HAVE A PLACE TO PORT THEM.
UH, WHEN WE TALK TO THE OTHER CARRIERS, THE SAME MESSAGE COMES THROUGH.
SO WE WANT TO GET THE, THE NEWEST AND BEST CRUISE SHIPS HERE SO WE CAN MAKE SURE THAT NOT ONLY TO BE MORE EFFICIENT IN THE USE OF THE RESOURCES WE ALREADY HAVE CRUISE TERMINALS, BUT ALSO ATTRACTING THE BEST CUSTOMERS DOWN HERE.
WE WANNA EXPAND RAILROAD CARGO.
AND I WANT TO TAKE A PAUSE RIGHT THERE AND TALK ABOUT
[00:10:01]
THAT.UH, I SPENT EIGHT YEARS IN SAVANNAH, AND DURING THAT TIME, I GOT A CHANCE TO WORK WITH THE PORT AUTHORITY IN GEORGIA, GEORGIA PORTS AUTHORITY, THE BIGGEST RAILROAD OPERATOR IN THE COUNTRY.
THE LOCATION OF THE COUNTRY IS WHERE ROBERT BRUN, FORT ROGER, BRUNSWICK, BRUNSWICK, GEORGIA.
WHY BRUNSWICK, GEORGIA? BECAUSE RIGHT UP THE, THE COAST FROM BRUNSWICK, GEORGIA IS ELBA ISLAND.
ELBA ISLAND SITS IN THE MIDDLE OF THE SAVANNAH RIVER AT THE SAVANNAH PORT, AND THEY HAVE L AND G THERE.
THE RAILROAD VESSELS GO TO BRUNSWICK, DROP THE CARGO THERE 'CAUSE THEY CAN REFUEL THERE AND GET BACK TO EUROPE.
WE WANT TO BE THAT POSITION HERE FOR GALVESTON.
WE WANNA PROVIDE LNG HERE TO MOVE THOSE RAILROAD VESSELS HERE.
I'LL LEAVE IT TO AUSTIN TO TELL YOU ABOUT EVEN CONVERSATIONS WE HAD AS LATE AS SIX O'CLOCK LAST NIGHT WITH THE RAILROAD CARRIERS WHO HAVE TOLD US THEY WILL CHANGE THEIR SUPPLY CHAIN MANAGEMENT.
IF THEY CAN GET ROT, UH, LNG IN THIS LOCATION, WE KNOW WE CAN DEVELOP THAT.
WE ALSO CAN EXPAND CARGO, WHICH MEETS YOUR, YOUR MASTER PLAN ON THE EXPORT OF ISO CONTAINERS AND OF COURSE, NEW REVENUE SOURCES.
THIS WHOLE THING GENERATES A WHOLE NEW SET OF REVENUE SOURCES FOR THE PORT AND INCLUDING LNG BUNKERING AND LNG FUELING, UH, FEES FOR THE PORT.
THE NUMBERS ARE GONNA BE SIGNIFICANT.
AND OF COURSE, LABOR BIRTHING OPPORTUNITIES.
WE'RE HEARING FROM MORE SHIPS THAT THEY COULD COME HERE AND LOAD, UH, FUEL, UH, WITH L AND G.
A LOT OF THOSE SHIPS SITTING OUT IN THE DE MER AREA RIGHT NOW THAT THEY WOULD WANT TO COME HERE.
AND REMEMBER, THERE IS NO OTHER PORT ON THE GULF COAST THAT WILL HAS LIQUID FACTION AND LNG BUFFERING IN THE PORT.
CARNIVAL DOESN'T HAVE IT ON THE EAST COAST.
NO PLACE IN THE PORT PORT OF HOUSTON DOES NOT HAVE IT.
WE WANNA BE THAT GAS STATION THAT HANDLES THE SHIP TRAFFIC FROM THAT.
SO THE, THE MARKET GOING FORWARD IS TREMENDOUS.
UH, THIS IS GONNA BE, YOU MENTIONED YOUR SECOND GOAL, UH, LEVERAGING AND MANAGING THE ASSETS FOR ECONOMIC PROSPERITY.
UH, BY DOING THIS, WE CAN BE THE FIRST MARINE L AND G PRODUCTION AT BUNKERING ENTERPRISE.
WE WANNA BE THE TOTAL SOLUTION, UH, NOT JUST A PORTION OF IT.
UH, SO, AND HAVE THE PORT OF GALVESTON AND THE CITIZENS OF GALVESTON BENEFIT FROM THAT TOTAL SOLUTION.
UH, AND OUR VISION, AND YOU'LL SEE LATER IS WE WANNA BE SORT OF THE BUNKIES OF THE MARINE INDUSTRY IN THIS AREA.
THIS IS WHERE WE WANT FOLKS TO COME TO DO LAY BIRTHING, TO DO OPERATIONS HERE BECAUSE THEY HAVE THE AVAILABILITY OF A FUEL THAT THEY CAN'T GET ANYWHERE ELSE.
UH, OF COURSE, EXPANDING EXPORT BUSINESS TIES INTO YOUR THIRD GOAL, WHICH IS DEVELOPING EXISTING AND NEW BUSINESS OPPORTUNITIES, ESPECIALLY IN THE RAILROAD AREA.
LARGER CRUISE SHIPS WITH MORE PASSENGERS USING THE TERMINALS YOU HAVE RIGHT NOW, MORE EFFICIENTLY, UH, AND, AND BETTER CRUISE SHIPS.
AND OF COURSE, NEW REVENUES COMING IN FOR GOAL THREE.
GOAL FOUR ON THE COMMUNICATION SIDE.
THE ONE THING I WANNA TALK ABOUT THERE IS THAT ONE OF YOUR GOALS IS INCREASING THE BRAND FOR THE PORT OF GALVESTON.
WE THINK THIS WILL INCREASE THE BRAND FOR THE PORT OF GALVESTON INTERNATIONALLY.
UH, WE THINK WITH THE OPPORTUNITY AS THIS GETS ROLLED OUT, UH, AND WE'RE DOING THIS RELATIVELY QUICKLY, YOU'LL HEAR ABOUT THE TIMEFRAME IN A FEW MINUTES THAT ALL OF A SUDDEN THIS PUTS GALVESTON ON THE MAP FOR A WHOLE KINDS OF SERVICES CARGOES AND ACTIVITIES THAT PEOPLE HAVEN'T EVEN THOUGHT ABOUT GALVESTON FOR IN THE PAST, FROM THE PAST.
SO WE THINK THIS INCREASES THAT BAND.
THE LAST GOAL YOU HAVE ON YOUR MASTER PLAN DEALS WITH PEOPLE.
UH, WE WILL ACTUALLY, UH, UH, BE EXPANDING OPPORTUNITIES FOR MORE EMPLOYMENT IN THIS PARTICULAR AREA.
I WILL MENTION ONE THING IN PASSING.
A LOT OF THINGS THAT WE KNOW THAT WE CAN DO IN GALVESTON, UH, BECAUSE OF OUR LOCATION AT THE MATTHEW HOUSTON SHIP CHANNEL, IS THAT WE CAN PROVIDE SERVICES OUT OF THIS AREA TO SHIP GOING UP AND DOWN THE HOUSTON SHIP CHANNEL.
AUSTIN AND I HAD A CONVERSATION WITH THE SECOND LARGEST, UH, UH, CONTAINER OPERATOR IN THE WORLD A FEW WEEKS AGO, UH, FROM THEIR OFFICES IN EUROPE.
A LONG CONVERSATION, UH, 'CAUSE MOST OF THESE PEOPLE ARE LOOKING AT OTHER KINDS OF GREEN FUELS.
THEY'VE LOOKED AT AMMONIA, THEY'VE LOOKED AT AT, UH, METHANOL.
THEY'VE LOOKED AT BLUE AND GREEN AMMONIA.
MOST OF THESE FOLKS AS HAVE GONE THROUGH THAT PROCESS, COME BACK TO LNG.
THIS PARTICULAR ENTITY SAID RIGHT NOW WE ARE BUILDING 54 NEW CONTAINER SHIPS OF THE 18,000 TEU SIZE MASSIVE CONTAINER SHIPS.
AND RIGHT NOW WE CAN'T SEND ANY OF THOSE TO HOUSTON BECAUSE THEY CAN'T GET ANY FUEL HERE.
SO WE SEE A TREMENDOUS OPPORTUNITY TO WORK IN THOSE AREAS WITH MULTIPLE CARRIERS.
NOW I'M GONNA SLIP OVER TO HERE.
I INTRODUCED YOU TO A GUY THAT'S THE REAL BRAINS BEHIND THIS OPERATION.
AS I MENTIONED, I FIRST MET AUSTIN, UH, ABOUT EIGHT YEARS AGO NOW, AND WE'VE WORKED ON DOZENS OF PROJECTS TOGETHER.
THIS IS A PLAN THAT AUSTIN HAS HAD IN PLACE FOR FIVE YEARS, AND HE'S DEVELOPED, UH, HE'S GOT TREMENDOUS EXPERIENCE.
HE OWNED HIS OWN, UH, PIPELINE DEVELOPMENT AND SERVICING COMPANY FOR 15 YEARS.
AND WHEN HE SOLD THAT COMPANY FOR THE LAST 10 TO 12 YEARS, HE'S BEEN INVOLVED IN PROJECT DEVELOPMENT FOR PROJECTS JUST LIKE THIS THROUGH HIS COMPANY'S OR ALSO DEVELOPMENT AND, UH, SOURCE PROJECT GROUP.
BUT, UH, A BRILLIANT INDIVIDUAL.
HE'S PUT TOGETHER A TREMENDOUS TEAM, UH, TO MAKE THIS HAPPEN.
AT THIS TIME, I'LL TURN IT OVER TO AUSTIN AND THEN COME BACK IN FOR SOME COMMENTS AT THE END.
[00:15:01]
WAS BREATHING FROM THE FIRE, RIGHT? UM, BUT YEAH, BICKS HAS, UH, OBVIOUSLY BEEN VERY INSTRUMENTAL TO WHAT WE'RE DOING HERE IN THE PORT OF GALVESTON.AND, UM, YOU KNOW, OBVIOUSLY OUR PARTNERS, WE'VE GOT THIS UP HERE, BUT THE GALVESTON WARS, I COULDN'T EVEN EXPRESS, UM, MORE GRATITUDE TO ROGER AND HIS TEAM AND THE TRUSTEES FOR ALLOWING US TO, YOU KNOW, YOU KNOW, PURSUE THIS OPPORTUNITY.
I GUESS, YOU KNOW, OVER A YEAR AGO WE LOOKED AT THIS AND, YOU KNOW, IT WAS JUST LIKE A BLANK SLATE.
UM, YOU KNOW, WE'RE UP HERE LOOKING AT THE BOARD AND IT'S KIND OF HOW EVERYTHING STARTS RIGHT ON BACK OF A NAPKIN.
BUT OVER A YEAR, WE'VE BEEN ABLE TO AGGREGATE ALL THESE STRATEGIC PARTNERS, ALL THESE VARIOUS, UM, CUSTOMERS AND REALLY PULL SOMETHING TOGETHER IN THIS EXTRAORDINARY, UM, YOU KNOW, I WANT TO POINT OUT CROSS TIMBERS.
WE COULDN'T DO IT WITHOUT THEM.
UM, YOU KNOW, THROUGH A PROJECT FINANCE, UH, TRADITIONAL ACTIVITIES THAT ANY DEVELOPER'S GONNA SEE.
YOU KNOW, YOU INTERVIEW A A BUNCH OF INVESTORS AND I COULDN'T BE MORE GRATEFUL FOR CROSS TIMBERS AND THEIR TEAM, A BUNCH OF AGGIES, YOU KNOW, UM, ANYBODY IN HERE.
UM, BUT WE ARE, WE'VE REALLY HIT IT OFF AND, UH, ARE CHARGING HARD.
UM, SOME OF THESE OTHER GROUPS HERE ARE OBVIOUSLY GONNA BE, YOU KNOW, THE GUYS DOING THE DAY-TO-DAY GRINDING.
YEAH, HE'S GONNA BE OUR OWNER'S ENGINEER.
UM, SEAN'S GOT A, A LONG BACKGROUND IN L AND G.
I'VE GOT SOME, SOME, SOME STUFF IN THE BACK OF THIS PRESENTATION IF YOU HAD ANY QUESTIONS FOR HIM.
UM, BUT HE'S KIND OF LEADING THE CHARGE ON THE ENGINEERING CONSTRUCTION SIDE.
OSIS WAS OBVIOUSLY, UH, VIC'S, UH, LLOYD GIS HERE, OUR TECHNOLOGY, UH, PROVIDER FOR LNG, THE EXPERT ON LNG.
SO IF YOU GUYS HAVE ANY QUESTION, UH, LLOYD'S A GREAT RESOURCE.
UH, YOU KNOW, I CAN'T, CAN'T THANK HIM ENOUGH FOR ALL EVERYTHING HE'S DONE.
UM, WE'RE, WE'RE WORKING WITH ENERGY TRANSFER, BIG NAME.
YOU GUYS PROBABLY HAVE SEEN THEM IN, YOU KNOW, UH, MINUTE MAY STADIUM OR DAIKIN PARK AND ALL OVER, RIGHT? UM, HUGE COMPANY.
UM, THEY ACTUALLY HAVE THE, THE, THE PIPELINE INFRASTRUCTURE THAT'S GONNA, UH, FACILITATE THE 400,000 GALLON A DAY, UH, PROJECT.
AND IT'S ACTUALLY ON PELICAN ISLAND.
SO FORTUNATE FOR US, IT'S THERE.
SO, UM, ELIMINATES ANY NEED FOR ANY ADDITIONAL PIPELINE INFRASTRUCTURE BUILDS, BUT THEY'RE SUPPLYING THE NATURAL GAS THAT'S GONNA BE THE FUEL FOR, FOR THE, THE PORT.
UM, AND THEN WE HAVE ANESTA HERE.
UH, GREGORY TON HERE, STRATEGIC PARTNER, UH, GREG AND HIS TEAM, UM, BASED IN MEXICO CURRENTLY HAVE LNG OPERATIONS, UM, HELPING US WITH LOGISTICS AND MANAGING, YOU KNOW, ALL, ALL THE THINGS THAT GO ALONG WITH, UM, BUILDING A PROJECT LIKE THIS.
THEY HAVE SEVERAL DIFFERENT L ACTION, UH, FACILITIES, UH, TERMINALS, SO ON AND SO FORTH DOWN SOUTH.
AND THEN OF COURSE, UNIVERSAL'S HELPING US WITH SURVEY AND MAPPING.
UM, I THINK REALLY IMPORTANTLY, UM, YOU KNOW, BEFORE WE WANTED TO KIND OF PUT PEN AND PAPER AND, AND REALLY MAKE SOME OF THESE DECISIONS, UM, WITH REGARD TO SCHEDULE, UM, IT'S TAKEN A LOT OF TIME AND EFFORT, RIGHT? A LOT OF MOVING PARTS GOING DOWN, A LOT OF DIFFERENT ROADS TO, YOU KNOW, UNDERSTAND WHAT LEVERS TO PULL, RIGHT? AND ROGER AND BRETT HAVE BEEN EXTREMELY HELPFUL AND EVEN TONY, AND IN HELPING US GET TO THIS POINT,
UM, UH, BUT, YOU KNOW, WE, WE HAVE THE OPTION AGREEMENT IN PLACE.
WE'VE BEEN PROGRESSING THAT, UM, VERY DELICATELY IN ORDER TO MAKE SURE THAT WE HAD ALL THESE OTHER THINGS, YOU KNOW, NAILED DOWN SUCH AS OUR FEEDSTOCK AND, UM, OUR EPC AND, AND OUR PARTNER, OUR EQUITY PARTNER, OBVIOUSLY.
SO, UM, YOU KNOW, WE'VE BEEN, BEEN WORKING ON THAT.
UM, WE'RE CURRENTLY GONNA BE PUSHING FORWARD WITH HOPEFULLY, UH, WITH Y'ALL'S BLESSING, THE, THE LEASE AGREEMENT REALLY SOON.
UM, FUNDING CLOSE IS SCHEDULED THE FIRST PART OF JUNE.
UM, THAT'S A, A LITTLE BIT OF A MOVING TARGET, JUST WAITING ON A COUPLE LITTLE THINGS TO TIGHTEN UP, BUT WE FEEL VERY CONFIDENT IN THAT.
AND THEN, UM, LIKE VIC MENTIONED, WE HAD A CONVERSATION LAST NIGHT, UH, WITH ONE OF YOUR LARGEST, UH, POTENTIAL RAILROAD CUSTOMERS HERE.
AND, UM, THEY WANNA START FUELING AS SOON AS, UH, Q4 OF THIS YEAR.
NOW, WHETHER WE GET THAT PULLED OFF EXACTLY IN THAT TIMEFRAME, WE'LL SEE THERE'S, UH, SOME REGULATORY AND PERMITTING THINGS THAT WE NEED TO ADDRESS.
UM, AND ALSO WORKING WITH BRETT ON SOME OF THE, THE COMMERCIAL SIDE OF THINGS, THERE'S A NEGOTIATION, OBVIOUSLY WITH EVERY ONE OF THESE PORT CUSTOMERS, RIGHT? UM, BUT OFF TAKE FOR THE BIG PLANT OVER ON PELICAN ISLAND, UM, THAT'S ONGOING.
WE HAVE MULTIPLE MULTINATIONAL GROUPS RIGHT NOW, TRADING FIRMS, FOLKS THAT WANT TO BE INVOLVED IN THAT.
AND SO WE'RE SORTING THROUGH THAT.
UM, I WOULD SAY WE'RE, WE'RE OVERSUBSCRIBED, UM, BY, YOU KNOW, EXPONENTIALLY, UM, FEED ENGINEERING.
UM, SEAN AND HIS TEAM HAVE ALREADY GONE THROUGH A-A-F-E-L TWO LEVEL OF EFFORT ON PELICAN ISLAND, AND WE'RE GONNA FI FINISH OUT OUR DETAILED, UM, DESIGN ONCE WE KIND OF GET THE MEETS AND BOUNDS OF THE,
[00:20:01]
THE, THE LEASE SORTED OUT, RIGHT? SO WE HAVE TO KIND OF IDENTIFY THAT WE'VE BEEN WORKING WITH, UM, BRETT AND ROGER ON, YOU KNOW, THE HIGHEST AND BEST USE OF THE LAND THAT'S AVAILABLE OVER THERE.AND ALSO BEING ABLE TO PLACE THE L AND G FACILITY, UM, YOU KNOW, APPROPRIATE DISTANCES AWAY FROM ALL, ALL THE OTHER COUNT, THE, THE NEIGHBORS, THE BUTTER TRACKS, ALL THAT STUFF.
AND, YOU KNOW, VISUALLY TRYING TO KEEP IT AS, UH, YOU KNOW, IN, YOU KNOW, OFF THE, YOU KNOW, OFF THE HARBOR AND, YOU KNOW, MAKE EVERYBODY, UH, HAPPY WITH THAT.
UM, REGULATORY, ENVIRONMENTAL PERMITTING KICKING OFF IN JUNE AS WELL, THAT WOULD TAKE ABOUT 10 MONTHS.
UH, PROCUREMENT, YOU KNOW, LLOYD'S, HIS TEAM'S ALREADY READY TO ROLL.
UM, IT'S A MODULAR FABRICATION, SO EVERYTHING WILL BE BUILT, UM, TO, YOU KNOW, I THINK BICKS KIND OF POINTED THIS OUT, HOW SOME OF THESE OTHER PROJECTS TAKE QUITE SOME TIME TO GET DONE.
BUT, UM, WITH OSIS MODULAR TECHNOLOGY, UM, EVERYTHING'S FABRICATED, ALL THE PROCESS ENGINEERING, EVERYTHING IS DONE ELSEWHERE.
SO WHEN IT'S TIME TO DEPLOY THE EQUIPMENT, IT'S JUST TRUCKED IN AND WE'RE SETTING IT DOWN.
THERE'S VERY MINIMAL, UH, CONSTRUCTION OR, YOU KNOW, FABRICATION BUILDING.
IT'S ELSEWHERE, BUT IT'S IN TEXAS.
SO RIGHT HERE IN WALLER, TEXAS, BARGE IN, RIGHT.
UM, YEAH, SO, YEAH, AND WE MIGHT, WE MIGHT BARGE, WE MIGHT NEED TO BARGE SOME OF THE, SOME OF IT INTO, SO, UM, SITE WORK, COMMISSIONING ALL THAT INTO, UH, Q3, UH, 2027, TAKE ABOUT 12 MONTHS TO GET US TO COD.
AND, UH, WE'RE LOOKING FOR A Q4 OF 28 OPERATIONS ON PELICAN ISLAND.
SO, AND THAT'D BE INCLUSIVE OF, UM, SOME OF THE, THE THING, THE ONGOING DISCUSSIONS WE HAVE WITH THE PORT ABOUT A POTENTIAL DOCK AND A LIQUIDS LOADING, UH, FACILITY OVER THERE, RIGHT? SO, UM, I WOULD SAY GOING ON SHORT TO SHIP FUELING, UM, I THINK BRETT'S REALLY EXCITED ABOUT THIS, BUT, UM, WE, DISCUSSIONS LAST NIGHT WERE REALLY POSITIVE, BUT THERE'S PROBABLY AN ADDITIONAL FOUR VESSELS COMING JUST BY THE WAY OF LNG FACILITATING THAT, RIGHT? SO NOT NECESSARILY CARGO, BUT JUST THE, THE BUNKER FUELING AND WHATNOT.
SO WE'RE SEEING THAT WITH EVERY ONE OF THESE CORE CUSTOMERS THAT WE'RE TALKING TO, RIGHT? A LOT OF INTEREST.
UM, SO CAP TABLE FOR US, IT LOOKS, IT'S, IT'S ROUGHLY ABOUT A $227 MILLION, UH, PROJECT.
UM, IT'S ABOUT A 65, 35, UH, DEBT EQUITY SPLIT.
UM, THIS IS WHERE, YOU KNOW, CROSS TIMBERS IS GONNA KIND OF TAKE THE LEAD ON THE, UH, THE EQUITY INVESTMENT THERE.
BUT, UM, YOU KNOW, WE DO HAVE THE ABILITY, UM, WITH PORT PROPERTY TO DO SOME TAXES AND BOND FINANCING.
UH, WE'RE NOT A HUNDRED PERCENT SURE IF THAT'S THE ROUTE WE'RE GONNA GO.
UH, CROSS TIMBERS WILL BE DRIVING THAT DECISION, BUT JUST WANTED TO MAKE YOU GUYS AWARE OF IT.
CONSTRUCTION FINANCING WILL BE AROUND $165 MILLION.
UM, I JUST HAVE THIS SLIDE IN HERE, OBVIOUSLY A LITTLE BIT ABOUT, UH, CROSS TIMBERS, UH, BOBBY'S HERE.
UM, BOBBY'S, UH, YOU KNOW, ON THE INVESTMENT COMMITTEE, HE IS A DECISION MAKER.
UM, YOU KNOW, INFRASTRUCTURE HEAVY INVESTMENTS, UH, DONE ONE, ONE OF THE THINGS THAT WAS REALLY GOOD FOR US IS THEIR, THEIR EARLY STAGE, YOU KNOW, INVESTORS, RIGHT? UM, NOT HAVING, YOU KNOW, THE COMMERCIAL AGREEMENTS IN PLACE AND NOT HAVING A BALANCE SHEET FOR A DEVELOPMENT COMPANY, UH, ACROSS TIMBERS REALLY FACILITATED OUR, UM, ACCELERATING THE PROJECT ON OUR SIDE.
SO, UM, OBVIOUSLY HEAVY INFRASTRUCTURE, WATER POWER, TRANSPORTATION, CELL TOWERS.
UM, THEY'RE WORKING WITH THEIR BANKERS ENGINEER, UM, ALVAREZ, MARCEL.
UM, SO BASICALLY AT THIS POINT WE'RE THE PROJECT'S BEEN FULLY VETTED BY THEIR TEAM, AND, UH, WE'RE REALLY EXCITED, OBVIOUSLY TO BE WORKING WITH THEM.
OFFICER, IF I COULD MAKE A QUICK COMMENT THERE.
WE JUST WANT TO SAY HOW MUCH WE APPRECIATE BOBBY'S MANAGING DIRECTOR, UH, AND DIRECTOR OF INVESTMENTS FOR CROSS TIMBERS.
THEY ARE MORE THAN AN INVESTOR.
THE BACKSIDE OF THEIR OPERATION WILL SET UP AND STAND UP THIS BUSINESS.
UH, THEY HAVE THE ABILITY AND THE EXPERIENCE IN TAKING BUSINESSES LIKE THIS AND BRINGING THEM UP FROM SCRATCH.
SO THEY WILL BE HAND IN HAND WITH WHAT'S GOING ON HERE, ESPECIALLY ON THE OPERATIONAL SIDE OF THE HOUSE.
THAT GIVES US A BREADTH OF, OF SCOPE AND STRENGTH FOR THE OPERATION OF THE BUSINESS ITSELF, FAR BEYOND WHAT WE CAN DO OURSELVES.
AND BOBBY, I WANT TO THANK YOU FOR THAT.
UH, BUT HE'S BEEN LY INVOLVED IN THIS, SO THANK YOU, SIR.
UM, AS FAR AS THE PARTNERSHIP'S CONCERNED BETWEEN THE FOUR AND, UH, OUR LNG, YOU KNOW, WE REALLY HAVE EMBRACED THIS OPPORTUNITY TO WORK WITH THE COURT.
UM, I THINK SOMETHING THAT'S BEEN REALLY, UH, RESONATED WITH ME IS EVERY ONE OF THE STRATEGIC PARTNERS THAT WE'VE BROUGHT TO THIS, UH, THIS ROOM AND HAD MEETINGS WITH, UM, THE, THE PORT TEAM HAS REALLY WALKED AWAY WITH THIS UNDERSTANDING HOW, UM, UH, COMMITTED YOU GUYS ARE TO THIS MASTER PLAN AND HOW COMMITTED THEY ARE TO WORKING WITH
[00:25:01]
PARTNERS LIKE US, RIGHT? AND WE HAVE BEEN, UM, YOU KNOW, I, I THINK I EMAIL BRETT EVERY DAY.I'M PROBABLY HARASSING HIM AT THIS POINT, BUT, UH, IT'S JUST BEEN PHENOMENAL, RIGHT? SO FROM THAT PERSPECTIVE, WE COULDN'T BE HAPPIER TO BE HERE AND, UH, REALLY APPRECIATE THAT.
BUT WE ARE AS THE EXCLUSIVE LNG PROVIDER IN THE PORT OF GALVESTON.
AND, UM, YOU KNOW, I THINK VICKS KIND OF SAID IT, WE ARE, WE'RE LOOKING TO EXPAND THIS, AND I THINK THE DEMAND WILL BE HERE RELATIVELY SOON.
YOU KNOW, IT'S GETTING THAT FIRST DOMINO KNOCKED OVER.
UM, WE'RE LOOKING AT A LONG-TERM LEASE ON PELICAN ISLAND, SO THIS IS A 30 YEAR LEASE WITH TWO, UH, 10 YEAR RENEWALS AFTER THAT, RIGHT? SO THIS INFRASTRUCTURE IS GONNA BE HERE FOR A LONG, LONG TIME.
AND WE SEE IT AS, UM, YOU KNOW, A CONTINUAL PATHWAY FOR GROWTH AND DEVELOPMENT FROM, LIKE VIC SAID, THE, THE, UH, SHORT SHIP LOADING, THE BUNKERING, AND THEN THE EXPORT AS WELL.
AND I EVEN MENTIONED SOME OF THE DI DIRECT, UH, CONSUMPTION HERE IN THE HOUSTON MARKET, UM, OFF TAKERS WITH THE JONES ACT FESTIVALS.
WE ARE SPEAKING WITH, UM, A GROUP THAT, UH, YOU KNOW, WAS HERE LAST YEAR, UH, SEASIDE AS WELL.
SO, UM, DEFINITELY OF ALL THAT, WHO ARE POTENTIAL CUSTOMERS, UM, I MEAN, IT RUNS THE GAMUT.
I MEAN, THERE'S JUST ANYBODY AND EVERYBODY ALL AROUND THE WORLD, UM, YOU KNOW, PORT OF HOUSTON AND THE PORT OF GALVESTON ATTRACT ALL THESE FOLKS.
AND I CAN'T SAY WHICH ONE UP HERE IS, UH, YOU KNOW, POTENTIALLY OUR, OUR PARTNER TODAY.
UM, BUT YOU KNOW, THOSE ANNOUNCEMENTS WILL BE COMING.
BUT EVERY ONE OF THESE, UH, THESE GROUPS UP HERE, WHICH YOU CAN PROBABLY RECOGNIZE ARE TARGETS, AND WE'RE IN, UH, ONGOING CONVERSATIONS WITH, RIGHT? UM, EVERYBODY HAS A, A, A, A VERY STRONG INTEREST IN USING THE PORT OF GALVESTON TO FUEL THEIR VESSEL.
AND BY THE WAY, THE PORT'S BEEN BEYOND HELPFUL IN INTRODUCING US TO MOST OF THESE FOLKS, RIGHT? AND WALKING US IN THE DOOR.
SO, UM, WHY THE PORT OF GALVESTON? OBVIOUSLY THIS IS A GATEWAY TO THE GULF OF AMERICA, CARIBBEAN, LATIN AMERICA.
JUST SOMETHING TO NOTE ABOUT US.
WE DO HAVE A DOE EXPORT LICENSE, UM, SOMETHING THAT'S PRETTY UNIQUE ABOUT US.
UH, WE ALREADY SECURED THAT SEVERAL YEARS AGO.
WE'RE CURRENTLY GETTING THAT AMENDED TO MOVE IT TO 1000 SEAWOOD PARKWAY.
UM, SO WITH THE, WITH THE PORT'S HELP, SO, UM, YOU KNOW, IT'S, IT'S, IT'S ALL THE WAY UP INTO WASHINGTON FROM THAT, FROM THAT PERSPECTIVE.
UM, AND THEN, YOU KNOW, BICKS ALSO TALKED ABOUT HAVING ACCESS TO PIER 34 AND PIER 37.
OBVIOUSLY WITHOUT THOSE, UM, OPERATIONS, UM, YOU KNOW, WE COULDN'T DO THE SHORTEST SHIP, UH, LOADING WITH THE, THE ROW RAILROAD AND CARGO VESSELS.
UM, THE EXPORT, UM, OPPORTUNITIES OFF PIER 34 ARE, ARE EXTRAORDINARY, TO BE PERFECTLY HONEST.
SO, UM, YOU KNOW, REALLY SPEND A LOT OF TIME WITH BRETT EXPANDING THE, UH, CARGO OPERATIONS OFF PIER 34.
I THINK THAT WE CAN, WE, I MEAN, CRAWL A WALK RUN, BUT WE CAN PROBABLY GET, UM, A SIGNIFICANT AMOUNT OF THESE ISO CONTAINERS FLOWING ACROSS THE DOCK ON A VERY REGULAR BASIS AND IN VERY NEAR TERM.
UM, I COULD RATTLE OFF A WHOLE BUNCH OF DIFFERENT, YOU KNOW, LATIN AMERICAN CARIBBEAN COUNTRIES THAT ARE CURRENTLY IN DISCUSSIONS WITH US.
UM, AND THEN, UM, LET'S SEE, YEAH, THE PRODUCTION AND THE, AND, AND BASICALLY BEING HERE IN THE PORT, OBVIOUSLY.
BUT, UH, V MENTIONED, UH, BEING THE BUCKYS OF THE, THE, THE GULF COAST.
BUT REALLY THAT'S WHAT WE'RE DOING HERE.
I MEAN, AT THE END OF THE DAY.
UM, SO, UH, I JUST WANNA GIVE YOU KIND OF A BRIEF OVERVIEW IF EVERYBODY DOESN'T QUITE UNDER, UH, HAVE THE, THE GEOGRAPHICAL LAYOUT.
UM, WE DID A, A BUNCH OF VARIOUS STUDIES, ENGINEERING STUDIES, BUT ALL THE PORT, UH, PROPERTIES AND INFRASTRUCTURE AND DOCKS, AND WE'VE SETTLED ON A 95 ACRE, UH, PARCEL OVER THERE THAT LOOKS LIKE OKLAHOMA TURNED ON ITS SIDE THERE.
UH, BUT YOU KNOW, WE'RE GONNA WORK, WE'VE BEEN WORKING WITH THE PORT, UM, ON IDENTIFYING, YOU KNOW, THE LAYOUT THERE.
BUT, UH, PIER 34 IS WHERE THE ISO LOADING'S GOING, AND THEN PIER 37 WILL BE THE SHORTEST SHIP FUELING, OBVIOUSLY, YOU GUYS JUST DID THE, UH, THE INFILL OF PIER, UH, THE, THE, THE, UH, SLIP 38.
AND SO SOME OF THIS IS GONNA BE VERY CONDUCIVE TO YOUR ONGOING EXPANSION OF JUST YOUR NORMAL DOCKAGE AND WARPAGE.
UM, YOU KNOW, BEING ON PIER 37 WITH THE FUELING, IT'S GONNA BE VERY HELPFUL FOR, UM, ANY OF THE ADDITIONAL RAILROAD ESTIMATES YOU GUYS HAVE COMING IN.
UM, SO I'M SURE Y'ALL ARE FAMILIAR WITH THAT.
AND THEN I KIND OF WANT TO TALK THROUGH JUST THESE OPERATIONS REAL QUICK.
UM, GRID 37 IS THE SHORTEST SHIFT LOADING.
UM, THIS IS JUST, SOME OF THESE IMAGES GUYS ARE, A LOT OF THIS HAS ALREADY BEEN DONE, RIGHT? SO THIS ISN'T ANYTHING REVOLUTIONARY HERE.
UM, YOU KNOW, TALLY RAND IN JACKSONVILLE, SOMETHING VERY SIMILAR TO THIS.
SO, UM, WE'RE JUST, YOU KNOW, WE'RE LOOKING TO, UM, BUILD SOME INFRASTRUCTURE VERY SIMILAR TO THAT TO ACCOMMODATE, UM, THE VESSELS
[00:30:01]
COMING IN.UM, THEN ALSO UP PIER 37 IN THE INTERIM, WHILE WE'RE WAITING ON, UM, PELICAN ISLAND TO, UH, YOU KNOW, FINISH CONSTRUCTION OUT THERE, WE'LL ALSO BE FILLING, UM, THE, THE BUNKER VESSELS THAT WILL, CAN SUPPLY FUEL TO THE CRUISE, CRUISE INDUSTRY.
AND THEN PIER 34, WHICH WE TALKED ABOUT A LITTLE BIT.
SO THIS IS THE FIRST OPERATION.
THIS IS WHAT WE WANT TO GET STARTED.
THIS IS SIMILAR SINCE THIS IS THE, THE JACKSONVILLE FACILITY, BUT AS YOU CAN SEE, YOU KNOW, IT HAS SOME ONSITE STORAGE, AND THEN WE'LL JUST BE, UM, BRINGING TRUCKS IN.
SO THE LNG WOULD ACTUALLY BE PRODUCED, UH, AT FACILITIES HERE IN TEXAS.
AND THEN WE'LL BE TRUCKED IN AND OFFLOADED INTO THESE TANKS AND STORED, UM, WHILE WE'RE WAITING ON THE, THE VESSELS TO CALL THE PORT.
SO, UM, WE'RE LOOKING AT, YOU KNOW, LOADING THESE VESSELS IN, YOU KNOW, A MATTER OF HOURS AND, UH, AND FLUSH 'EM THROUGH AS THEY'RE OFFLOADING CARGO.
UH, THE BUNKER VESSELS CAN CU 37.
UM, EVENTUALLY THIS WILL BE THE DOCK OVER ON PELICAN ISLAND.
BUT, UH, VERY SIMILAR TO THIS, YOU MAY HAVE SEEN THESE OPERATIONS, THEY'RE ONGOING TODAY.
NOTHING, NOTHING DIFFERENT THAN WHAT YOU SEE TODAY IN BUNKERING ACTIVITIES.
AND THEN PIER 34, WE IDENTIFIED WHAT AN ISO CONTAINER LOOKS LIKE, BUT, UH, ESSENTIALLY BEING ABLE TO SHIP THOSE THINGS ON, UH, OCEANGOING VESSELS TO LATIN AMERICAN, CARIBBEAN.
UM, THE LAST PHASE AND PROBABLY THE MOST IMPORTANT PHASE, YOU KNOW, PHASE ONE IN PELICAN ISLAND IS 400,000 GALLONS A DAY.
UM, YOU KNOW, WE'RE LOOKING AT, UH, YOU KNOW, A LATE, UH, 28 COD DATE, BUT HAVING THE ABILITY TO EXPAND THAT TO 800,000 GALLONS A DAY.
SO JUST SOMETHING TO KIND OF, UH, SO YOU GUYS CAN GET FAMILIAR WITH THIS, WE CAN DESIGN THE, UH, THE OSBL AND THE, THE SITE ITSELF FOR EXPANSION, RIGHT? SO WHEN WE GO IN AND DESIGN THIS, IT'S NOT GONNA JUST BE BUILT FOR 400,000 GALLONS A DAY, RIGHT? IT'S GONNA BE BUILT TO ACCOMMODATE THE EXPANSION THERE.
SO, UM, WITH MODULAR, IT'S LIKE STACKING LEGOS, RIGHT? IT'S, IT'S VERY SIMPLER JUST TO KEEP ADDING.
SO A LOT OF THE COMMON INFRASTRUCTURE, THE DOCK, EVERYTHING ELSE THAT GOES ALONG WITH IT, UM, WILL ALREADY BE IN PLACE.
SO IT'LL BE EASY FOR US TO, YOU KNOW, CONTINUE TO ADD ADDITIONAL MODULES AND ACCOMMODATE ADDITIONAL VOLUMES THAT ANY OF THE PORT CUSTOMERS ARE, ARE NEEDED.
UM, ON THE RIGHT HAND SIDE, IT'S JUST A BASIC DEPICTION.
WE'VE HAD A COUPLE DIFFERENT, UM, YOU KNOW, IDEAS ABOUT HOW THIS MIGHT GET LAID OUT.
PROBABLY PUSH THE SITE A LITTLE FURTHER BACK, UM, I THINK IS WHAT WE'VE SETTLED ON, UM, TO ACCOMMODATE, UH, UH, FURTHER PORT OPERATIONS RIGHT ON THE WATER.
BUT, UH, ESSENTIALLY THAT'S, THAT'S THE SITE I THINK EVERYBODY'S FAMILIAR WITH THAT PARCEL ON PEGAN ISLAND.
UM, A LITTLE BIT ABOUT, YOU KNOW, OPERATIONAL BENEFITS.
UH, LNG PRODUCES SIGNIFICANTLY FEWER POLLUTANTS.
UM, YOU KNOW, THERE'S CLIMATE, UH, THERE'S CLIMATE BENEFITS AS WELL.
UM, WE CAN INCORPORATE RNG RENEWABLE NATURAL GAS, WHICH EVERY ONE OF YOUR, UH, CUSTOMERS IS CURRENTLY ASKING FOR, UM, FOR, FOR EMISSIONS, YOU KNOW, SO, UH, WE CAN START, UM, INCLUDING SOME OF THAT RNG INTO THE, INTO THE GAS FLOW.
AND THEN, YOU KNOW, OBVIOUSLY YOU GUYS HAVE BEEN CERTIFIED SINCE 21, UM, WITH THIS GREEN MARINE.
SO THIS IS REALLY HAND IN HAND WITH WHAT YOU GUYS ARE TRYING TO ACCOMPLISH THERE.
AND THEN, OF COURSE, UH, FOR, FOR PURPOSES OF SAFETY HERE, LNG, YOU KNOW, NON-TOXIC, NON-CORROSIVE, NON FLAMMABLE, UM, IT'S VERY DIFFICULT TO IGNITE.
IT'S A NEGATIVE 260 DEGREES FAHRENHEIT, GENERALLY SPEAKING, SUB COOLED.
UM, IT'S, WE'RE GONNA HAVE ALL THE, THE SAFETY, UH, MEASURES IN PLACE ON PELICAN ISLAND AND PIER 37.
OBVIOUSLY THE CO WE'VE BEEN SPEAKING WITH THE COAST GUARD HERE.
WE'VE MET WITH THE, THE, THE FIRE MARSHAL AND OBVIOUSLY THE GALVESTON POLICE DEPARTMENT.
UM, A LOT OF THIS, AGAIN, WAS ALREADY APPROVED FOR SOME OF THE OPERATIONS OVER THE, UH, THE PREVIOUS YEARS, AND, UM, YOU KNOW, SO THAT'S GREAT.
I THINK FROM, UM, A PERCEPTION THOUGH, UH, OBVIOUSLY, UH, LNG IS SAFE AND WE WANT TO JUST MAYBE TOUCH ON THAT RIGHT HERE.
UM, THE PARTNERSHIP, UH, MASTER PLAN, OBVIOUSLY WE'RE, WE'RE LOOKING TO ALIGN WITH THE MASTER PLAN.
YOU KNOW, WE WANT TO HELP YOU GUYS, UH, ACHIEVE, UH, ABOVE AND BEYOND WHAT YOU GUYS HAVE ALREADY PREPARED.
THE PREVIOUS MASTER PLAN OBVIOUSLY WAS A HOME RUN, UM, AND WE WANT TO, WE WANT TO DO THAT AGAIN.
UM, AND WE WANT TO USE L AND G TO HELP YOU GUYS ATTRACT MORE BUSINESS.
UM, OBVIOUSLY DEVELOPMENT ON PELICAN ISLAND IS MUCH NEEDED, AND, UM, WE FEEL LIKE WE'RE GONNA BE ABLE TO DRIVE A LOT OF THAT DEVELOPMENT ALONGSIDE SOME OF THE OTHER ANNOUNCEMENTS THAT YOU GUYS MADE HERE RECENTLY.
UM, YOU KNOW, AND KEEP IN MIND, L AND G IS NOT JUST FOR, YOU KNOW, THESE VESSELS.
A LOT OF IT'S USED FOR ALL SORTS OF OTHER APPLICATIONS AND EVEN POWER PRODUCTION.
[00:35:01]
THERE'S, THERE'S A TON OF THINGS THAT WE CAN DO WITH IT BEING HERE IN THE PORT.RIGHT? UM, LET'S SEE ON THE, THAT ONE, HOW, HOW IMPORTANT IS THE BRIDGE AND REDOING THE BRIDGE TO THIS PROJECT? SO THE BRIDGE IS IMPORTANT.
UM, IF WE'RE DOING ANY TRUCKING ACTIVITIES, I MEAN, OBVIOUSLY WE MEET THE, THE WEIGHT RESTRICT ANY LIMITS RIGHT NOW ON THE BRIDGE.
I THINK IF WE, WE SAW, UM, UH, A HUGE INCREASE IN VOLUME ON TRUCKING, UH, OR, OR ANY SORT OF VOLUMES GOING OFF THE TRUCK WRECK AT PELICAN ISLAND THAT, YOU KNOW, REQUIRED US, I MEAN, IT'S DEFINITELY GONNA HAVE AN IMPACT, BUT, UM, CERTAINLY, BUT TODAY WITH WHAT'S THE CURRENT INFRASTRUCTURE, WE CAN ACCOMMODATE EVERYTHING THAT WE'RE DOING RIGHT NOW.
THE PIPELINE THAT GOES OVER THERE, KIND OF HOW FAR IT GOES AND WHAT'S THE SIZE AND CAPACITY.
I, I FIGURED I MIGHT HAVE TO COME OVER HERE.
LAST MEETING, WE WERE, WE WERE TRYING TO ANSWER 'EM AND WE KNEW WE DIDN'T HAVE AN ANSWER, RIGHT? SO OVER HERE IS A METER SITE THAT'S CALLED TEXAS GAS METER SITE, AND IT COMES IN FROM TEXAS CITY.
THE PIPELINE'S A 12 INCH PIPELINE, AND FROM TEXAS GAS METER SITE THAT FEEDS ALL OF GALVESTON, RIGHT? THE HOSPITALS, ALL THE DISTRIBUTION, EVERY, EVERYBODY'S HOMES.
AND FROM HERE OVER TO PELICAN ISLAND, THERE'S A 12 INCH PIPELINE THAT RUNS ALONG THAT PARALLELS THE BRIDGE.
AND RIGHT HERE IS THE TEXAS A AND M CITY GATE.
SO IT FEEDS TEXAS A AND M UNIVERSITY, AND THEN ALL THE OTHER, UH, GUESTS, UM, USERS ON PELICAN ISLAND.
FROM THERE, IT FOLLOWS, THERE'S AN EIGHT INCH PIPELINE THAT FOLLOWS SEAWOOD PARKWAY ALL THE WAY TO RIGHT HERE TO THE PANHANDLE OF, UH, THE 95 ACRES.
SO THE INTERCONNECT WE'LL MAKE RIGHT HERE, WE'LL COME ACROSS AND JUST, AND ENERGY TRANSFER WILL INSTALL THEIR METER RIGHT HERE.
SO IT'S, I MEAN, IT COULDN'T BE A BETTER SPOT TO BE PERFECTLY HONEST, FROM AN INFRASTRUCTURE PERSPECTIVE.
UM, BUT WE HAVE TO REACTIVATE THIS PIPELINE RIGHT HERE AND INSTALL THE METER SITE.
SO WHAT'S, WHAT'S THE CAPACITY THERE AND HOW MUCH OF, HOW ABOUT HOW MUCH OF IT DO Y'ALL HAVE AVAILABLE? SO WE'RE STILL IN DISCUSSIONS.
THERE'S SOME ENGINEERING THAT'S BEING, UM, JUST, YOU KNOW, GOING ON RIGHT NOW, BUT ROUGHLY WE'LL HAVE ABOUT 30,000 IN MVTU PER DAY AVAILABLE AT THIS SITE.
WHICH, WE'LL, YOU KNOW, ACCOMMODATE OUR 400,000 GALLON A DAY FACILITY.
UH, NAMEPLATE CAPACITY WILL PROBABLY PRODUCE CLOSE TO 375,000 GALLONS A DAY.
SO YEAH, IT'S, IT'S WORKED OUT GREAT.
I GUESS FOR THE EXPANSION, YOU WOULD NEED ADDITIONAL, THEN YOU NEED ADDITIONAL CAPACITY.
AND, AND I THINK THAT'S, THAT'S A GOOD POINT.
ANY, THERE'S ONLY ONE PIPELINE THAT FEEDS ALL OF GALVESTON.
SO ANY ADDITIONAL EXPANSION INDUSTRIAL USE, ANY OTHER CUSTOMERS YOU GUYS HAVE THAT MIGHT NEED NATURAL GAS, THERE WILL BE ANOTHER PIPELINE BUILT OUT HERE FOR SURE.
AND THE CRUISE LINES TAKE FIVE, 500,000 GALLONS A WEEK PER, PER, RIGHT.
YEAH, THAT'S A VERY GOOD POINT.
YOU SPELL THE WORDS RIGHT ON MY MOUNTAIN, AND I'LL MENTION THAT EARLY IN OUR PLANNING, WE HAD ACTUALLY PLANNED TO BUILD A NEW PIPELINE TO GIST AND ISLAND, AND WE HAD ALREADY SECURED THE LINE FOR THE RIGHT OF WAY AND, AND ACCESS POINT OF OUR SENIOR POINT TO GET THE GAS AT SOME POINT IN TIME, GALVESTON'S GONNA NEED ANOTHER GAS PIPELINE NO MATTER WHAT.
SO WE ALREADY HAVE A PLAN TO MAKE THAT HAPPEN.
AND SHOULD WE LOOK AT POWER GENERATIONAL ON PELICAN ISLAND, WHICH IS ONE OF THE PLANS WE'RE LOOKING AT RIGHT NOW, THEN WE WOULD ACTUALLY WORK WITH A THIRD PARTY TO BRING DOWN THE PIPELINE, MAYBE DO SOME POWER GENERATION.
BUT THOSE ARE PROJECTS GOING FORWARD RIGHT NOW, BOBBY, WE'RE STAYING ON TRACK WITH WHAT WE'RE GOING TO DO, AND THAT'S GET THE FIRST 400,000 UP AND RUNNING.
SO THE CRUISE INDUSTRY IS OBVIOUSLY GROWING, AND I THINK Y'ALL POINTED OUT VERY WELL IN THE MASTER PLAN.
UM, BUT THE PORT OF GALVESTON, I, I THINK, YOU KNOW, WHETHER ANYBODY CAN APPRECIATE OR NOT, THESE LNG VESSELS ARE COMING AND THEY'RE GONNA BE HERE.
AND IN ORDER TO CAPITALIZE ON THAT AND, AND ATTRACT THESE OASIS CLASS VESSELS AND DO EVERYTHING THAT YOU GUYS WANT TO DO, UM, YOU KNOW, UH, ONE OF YOUR BIGGEST CUSTOMERS, I WAS ON A PHONE CALL LAST WEEK WITH THEY, THEY ABSOLUTELY, THEY HAVE A, A TENDER OUT RIGHT NOW TO START SUPPLYING FUEL IN AUGUST 1ST TO 2027.
YOU GUYS CAN PROBABLY IMAGINE WHO THAT IS.
AND, UM, YOU KNOW, THERE'S LIMITED AVAILABILITY OF THAT, RIGHT? AND SO WE CAN'T PEDAL FAST ENOUGH TO GET THIS, UM, IN PLACE.
BUT, YOU KNOW, WE'RE LOOKING AT COURSE, UM, 1.2 MILLION, UM, GALLONS OF LNG PER DAY, UM, 442 MILLION, UH, A YEAR BY 2034, AND ALMOST 17 L AND G POWERED CRUISE SHIPS IN THE PORT OF GALVESTON IN THE NEXT 10 YEARS.
THAT'S A PHENOMENAL NUMBER, RIGHT? AND, UH, CONSIDERING WE'RE, WE'RE ONLY GONNA BE PRODUCING 400,000 GALLONS A DAY, YOU CAN, YOU CAN SEE THERE'S GONNA BE A SHORTAGE, RIGHT? SO THERE'S, THIS IS GONNA BE A CONTINUING DISCUSSION DOWN HERE, WHETHER WE, UM, CAPTURE ALL THAT OR NOT.
THERE, THERE'S OBVIOUSLY AN OPPORTUNITY FOR, FOR DEVELOPERS WITH LNG AND, AND THE STORAGE CAPABILITIES AND THE STORAGE.
[00:40:01]
UM, STORAGE IS GONNA BE AN INTEGRAL PART OF HOW WE MANAGE THAT.UM, ROGER WRIGHT, YOU KNOW, THESE BUNKER VESSELS HOLD A CERTAIN AMOUNT OF FUEL.
THEY'RE DIFFERENT SIZES IF YOU HAVE MULTIPLE SHIPS FUELING AT THE SAME TIME, YOU KNOW, WHEN WE CAN LOAD AND WHEN WE, WHEN, YOU KNOW, THERE'S A LOT OF COORDINATION MANAGEMENT THAT'S GONNA BE, UM, GOING ON ON A DAILY BASIS HERE TO, TO, TO TAKE CARE OF THE CUSTOMERS JUST HERE IN THE PORT, LNG BATTERIES, RIGHT?
IT'S IMPORTANT, RIGHT? UM, E ECONOMIC IMPACT.
I THINK THIS, WE COULD FAR EXCEED THIS, BUT, UM, JUST ON THE 400,000 GALLON A DAY, WE JUST HAVE RUN SOME ROUGH NUMBERS AND WE'VE BEEN WORKING WITH, UH, BRETT, UM, ON KIND OF THE, THE PUBLISHED FEES AND EVERYTHING THAT GOES ALONG WITH THIS, AND THE ADDITIONAL, UM, VESSELS THAT WE'LL BE CALLING PORT OF GALVESTON, BUT ROUGHLY, WE'RE LOOKING AT ABOUT 5.6 MILLION IN ADDITIONAL, UM, ANNUALIZED, UH, OPERATING INCOME FOR THE PORT JUST BY HAVING OUR FACILITY, UM, LOCATED ON PELICAN ISLAND.
AND THEN OF COURSE, THAT'S ROUGHLY ABOUT 30 MILLION, UM, IN NET CASH FLOW OVER 10 YEARS.
BUT, UM, THIS IS INCLUSIVE OF LNG BUNKERING FEES, UM, ALL OBVIOUSLY THE ISO, UM, CONTAINER LOADING OFF OF PIER 34, THE SHORT OF SHIP LOADING, THE DOCKAGE, THE ADDITIONAL DOCKAGE AND, AND EVERYTHING THAT COMES ALONG WITH THAT.
SO, LIKE I POINTED OUT THAT THE, THE, THE RAILROAD, UH, COMPANY THAT WE'RE IN DISCUSSIONS WITH RIGHT NOW, THEY CURRENTLY HAVE ONE VESSEL THAT CALLS PORT OF GALISON.
BY HAVING LNG, THEY'RE ACTUALLY TALKING ABOUT SENDING YOU FOUR VESSELS, RIGHT? SO IT'S NOT JUST OFFLOADING CARGO, IT'S THE FUEL THAT'S DRIVING THAT AS WELL.
SO, UM, I THINK THAT'S JUST A REAL GOOD INDICATION OF WHERE THINGS ARE GOING WITH ALL THESE VARIOUS GROUPS AND HOW THE PORT CAN GROW.
UM, AND, YOU KNOW, WE REALLY, UM, YOU KNOW, ARE EXCITED ABOUT THIS OBVIOUSLY.
AND, UH, WE WANT TO, WE WANT TO DO THIS AS A COLLABORATION AS AS A TEAM, RIGHT? GOING FORWARD.
SO, UM, ONE LITTLE LAST THING HERE ON US.
UM, YOU KNOW, WE'VE, WE'VE CONTRIBUTED CLOSE TO 10 MILLION IN EQUITY INTO OUR PROJECT.
UM, WE HAVE ABOUT ANOTHER 3 MILLION TO SPEND OVER THE NEXT SIX MONTHS TO GET US TO OUR FID.
AND THEN WE HAVE, YOU KNOW, OBVIOUSLY ABOUT 214 MILLION FOR, UM, POST FID CONSTRUCTION.
SO THIS IS A RATHER LARGE, UH, CAPITAL INVESTMENT IN INFRASTRUCTURE PROJECT, UM, FOR GALVESTON.
I DON'T KNOW IF YOU WANT TO ADD ANYTHING TO THAT, BUT EXPLAIN, UM, YOU KNOW, I THINK IT'S SIGNIFICANT, RIGHT? WHEN WAS THE LAST TIME YOU DID A GROUNDBREAKING ON A NEW $250 MILLION CONSTRUCTION PROJECT IN GALVESTON ISLAND? UM, LAST MONTH.
LAST MONTH?
THERE IS A DISCLAIMER ON HERE, RIGHT? BUT WE REALLY, WE, WE WERE IN A BRAINSTORMING SESSION, WHOLE BUNCH OF AGGIES, RIGHT?
IF YOUR BATHROOMS ARE AS NICE, THEN WE'RE THAT'S RIGHT.
WE'LL, WE'LL DEFINITELY ACCOMMODATE THAT OVER THERE.
BUT YES, I MEAN, WE WANT TO BE THE BUCKYS OF THE MARITIME INDUSTRY.
I THINK GALVESTON IS, UM, YOU KNOW, SITUATED, UM, IT COULDN'T BE IN A BETTER LOCATION.
UM, I THINK EVERYBODY THAT WE'RE ALREADY TALKING TO AGAIN, IS, IS HIGHLY INTERESTED IN THIS.
AND, AND I THINK THAT, YOU KNOW, WE GET THIS IN PLACE, IT'S, IT'S GONNA JUST, IT'S JUST GONNA GROW EXPONENTIALLY.
IF I CAN MENTION TWO OTHER THINGS REAL QUICK, ONE THAT WE PROBABLY DIDN'T MAKE CLEAR.
I WANTED TO MAKE SURE, EVEN THOUGH THE PLANT'S NOT OPERATIONAL UNTIL THE LATTER PART OF 28, WE CAN SOURCE LNG, WHICH WE ALREADY HAVE DONE FROM OTHER PLANTS TO BEGIN DOING.
FUELING IS EARLY AS JANUARY OF 27TH.
SO THAT'S HOW THAT'S GONNA HAPPEN.
WE WILL ACTUALLY BUY IT FROM A THIRD PARTY AND BRING IT IN AS WE'RE BUILDING OUT OUR PLANT.
THE OTHER THING THAT ALWAYS COMES INTO PLAY, WHEN I WAS DOING INVESTMENT BANKING WORK, THE FIRST THING I'D LOOK AT IS TECHNOLOGY RISK.
CAN, DOES THIS WORK, DOES THIS TECHNOLOGY WORK WELL, THE ADVANTAGE OF THE PLUG AND PLAY MODEL THAT OSIS HAS, THEY ALREADY HAVE MORE THAN A DOZEN OF THESE EXACT PLANTS, JUST LIKE THE ONE WE HAVE OPERATIONAL.
SOME HAVE BEEN OPERATIONAL FOR MANY, MANY YEARS.
SO IT IS THE, THAT UNIT, AND WE'LL GET, WE'LL HAVE TWO OF THEM FOR FOUR, 200,000 GALLONS.
EACH WILL BE BUILT, UH, COMMISSIONED, TESTED EVERYTHING RIGHT HERE IN TEXAS AND THEN MODULARIZED AND PLACED HERE.
SO THE CONSTRUCTION RISK IS FAIRLY MINIMAL ON THIS PROJECT BECAUSE THE TECHNOLOGY IS ACTUALLY COMING IN FROM A THIRD PARTY, SERIAL NUMBER ONE.
AND WE INVITE YOU IF YOU'RE INTERESTED, UH, UH, ROGER, WE TALK, YOU HAVEN'T BEEN OVER TO THE PLANT YET TO LOOK AT THE S TECHNOLOGY AND CREDIT YOU WANTED TO SEE IT.
SO IF ANY OF THE BOARD MEMBERS LIKE TO COME WITH US AND SEE THIS TECHNOLOGY, YOU CAN SEE WHAT A UNIT WOULD LOOK LIKE.
EXACTLY LIKE THE ONE THAT WE'LL HAVE OVER HERE.
WE'D LOVE TO TAKE YOU BE ABOUT A DAY, HALF DAY TRIP OVER THERE.
UH, AND, AND YOU'RE GONNA BUY US LUNCH, AREN'T YOU, LLOYD? ALWAYS, ALWAYS.
STATION BARBECUE IS REALLY GOOD.
UH, ONE LAST THING TOO IS SPEED.
UH, YOU SAW THAT TIMEFRAME, UH, WE'RE, WE'RE SITTING HERE IN JUNE.
THIS IS A RAPID TIMEFRAME FOR A $250 MILLION
[00:45:01]
PROJECT.AND IT CAN BE DONE THIS WAY BECAUSE OF THE TECHNOLOGY WE'RE USING, BECAUSE WE CAN ACTUALLY CONSTRUCT UNITS OFFSITE, JUST BUILD THE TANKS.
THE BIGGEST THING ACTUALLY TO BUILD HERE IS THAT 3 MILLION GALLON TANK THAT'S OVER THERE.
SO THAT GETS INTO SPEED REVENUES VERY QUICKLY.
BUT WE ALSO KNOW THE MINUTE WE ANNOUNCE THIS, ONCE WE HAVE THE LEASE IN PLACE, AND WE'VE BEEN VERY CAREFUL, AND ROGER, ONE OF THE COMMITMENTS WE'VE MADE TO YOU EARLY ON, WE HAVE JANUARY, FEBRUARY A YEAR AGO, IS THAT WE WEREN'T GONNA GO TO THE, TO THE PRESS.
WE WEREN'T GONNA DO A FORMAL ANNOUNCEMENT LIKE THIS UNTIL SUCH TIME AS WE HAD DOTTED OUR I'S AND CROSSED OUR T'S AND HE KNEW WHERE WE'RE GOING, AND THAT'S WHAT TODAY REPRESENTS.
WE HAVE DOTTED THOSE I'S AND CROSSED THOSE T'S AND WE'RE READY TO MAKE THIS HAPPEN.
NOW YOU SAY, WHAT ARE THE NEXT STEPS? THE NEXT STEPS, TONY WILL BE WORKING ON THE WORK WE'RE ALREADY ON, ON FINISHING UP THE LEASE.
WE, WE THEN FILE A LETTER WE'RE SUPPOSED TO FILE WITH A COAST GUARD THAT PUTS US IN THAT TIME WINDOW FOR 12 MONTHS.
WE GET THAT IN PLACE AND ALL THE REST OF THE PERMITTING GETS KICKED OFF BECAUSE YOU HAD THE EXACT SITE, THE MEETS AND BOUNDS OF THE SITE IN PLACE AND THAT KIND OF STUFF.
AT THAT POINT IN TIME, THE ENGINEERING, THE FINISH ENGINEERING ON THIS, SEAN, FOUR MONTHS, FIVE MONTHS, UH, PROBABLY SIX, PROBABLY SIX.
UH, SO THE LAST PORTION OF THE ENGINEERING, THE ONSITE ENGINEERING IS DONE WITHIN SIX MONTHS BEFORE THE END OF THIS YEAR THAT ENGINEERING IS COMPLETED.
AND AT THAT POINT IN TIME, UH, THE FINAL WAR WILL BE MADE.
AND OF COURSE AT THE SAME TIME, CREOS WILL ALREADY BE BUILDING SOME OF THOSE UNITS IN PLACE.
AND AGAIN, WE SEE COMMISSIONING OF THIS IN Q3, Q4, 28, AND WE'RE PUMPING THAT L AND T AT THE END OF 28.
AND WE KNOW, ROGER, YOUR PHONE'S GONNA RING OFF THE HOOK ONCE THIS ANNOUNCEMENT GETS OUT.
AND UH, AND I WOULD, UH, OPEN TO ANY QUESTIONS THAT YOU MIGHT HAVE ON THIS PROCESS.
I'M, I'M CURIOUS, UM, ROUGHLY HOW MANY ISO CONTAINERS A DAY WOULD 400,000 GALLONS.
SO EACH ISO CONTAINER ON THE, ON THE BEST SIDE, THE HOLD 10,000 GALLONS, SO IT'S, IT'S, YOU KNOW, 40.
AND A LOT OF THE EXPORTING WILL ALSO WILL BE DONE IN BUNK VESSELS.
WE WE'LL UNDERSTAND, UNDERSTAND, YEAH.
WE HAVE TO DO, WE HAVE TO BUILD SOMETHING SIMILAR TO THIS RIGHT HERE? YEP.
SOME KIND OF PIPELINE AT LEAST INITIALLY WITH, WITH BALLERS AND THAT KIND OF THING FOR THIS SECTOR RIGHT IN HERE.
I MEAN OBVIOUSLY WE, I'M TRYING TO, I'VE GOT THREE OR FOUR SOURCES THAT WE'RE LOOKING AT, UM, FROM A GRANT STANDPOINT TO, UH, HELP WITH THAT PROJECT.
UM, SO WE'LL BE LOOKING AT POSSIBLY JUST A PIPELINE.
OUT TO THE WATER WITH, WITH BALLERS, UM, DOLPHINS OUT, MORNING DOLPHINS OUT THERE TO HOLD A SHIP IN THERE SO IT CAN FILL.
AND THAT'S THE MINIMAL, I MEAN, HOPEFULLY WE'LL BE ABLE TO GET SOME FUNDING FROM OTHER PLACES TO, I MEAN, I'M LOOKING TO BUILD A WHOLE NEW BIRTH OVER THERE.
AND THE TIMELINE ON, YOU'RE TALKING OVER THERE THOUGH.
AND THE TIMELINE ON THIS IS Q3 OF 28 TO HAVE ACCESS TO THAT, THAT DOCK BEING PUT IN PLACE SO WE CAN FUEL IT.
AGAIN, IF YOU THINK ABOUT SHORTAGE SHIP OPERATING ON PIER 37 AND A SHIP LOADING HERE, WE THEORETICALLY COULD BE LOADING ISOS AND FILLING A SHIP HERE AND FILLING A SHIP THERE SIMULTANEOUSLY.
WE COULD BE OFFLOADING IN THREE LOCATIONS.
RICHARD, ROUGHLY HOW MUCH OF THAT SHORELINE WOULD BE DEDICATED TO L AND G AND OR HOW MUCH MIGHT BE AVAILABLE FOR OTHER WELL, YOU KNOW, I MEAN, I'D LIKE TO BUILD THE WHOLE THING OUT, BUT OF COURSE THAT'S, YOU KNOW, THAT'S EXCESS OF $150 MILLION PROBABLY TO BUILD A BIRTH ALL THE WAY ACROSS 2100 FEET WE HAVE THERE.
UM, SO I MEAN, I THINK WHAT WE'RE LOOKING AT JUST AS, UH, SECTION, I MEAN INITIALLY DEPENDING, I MEAN HERE AGAIN, DEPENDING ON WHERE THINGS GO, RIGHT IN THIS SECTION, RIGHT IN HERE, YOU KNOW, WITH, WITH SOMETHING LIKE THIS THEN THE BALANCE, WHAT'S THAT? THE BALANCE COULD BE REGULATORY, WELL, THE BALANCE, YOU KNOW, IS TO ME IS, UM, A WASHINGTON DEAL BECAUSE I, YOU KNOW, WE'VE ALREADY PUT SOME, SOME SEEDS OUT ABOUT WHAT ARE WE GOING TO DO TO EXPAND THE SHIP BUILDING, HOW ARE WE GONNA BE ABLE TO SUPPLEMENT, UH, THE SHIP BUILDING'S GONNA START GOING ON OVER THERE WITH LAY DOWN AREAS.
AND IF, IF BARGES NEED TO COME IN HERE, I MEAN, GULF COPPER SLASH DAVIES DOES NOT HAVE A LOT OF LAND, AND IF YOU'VE SEEN, UM, THEIR CONSTRUCTION DRAWINGS, ALMOST ALL THE LAND THEY HAVE AVAILABLE OVER THERE WILL BE GONE.
AND SO, YOU KNOW, MY, MY THOUGHT PROCESS IS THAT WE START GENERATING, UM, A PLACE FOR RAW PRODUCTS TO COME INTO, UM, GULF COPPER ON THIS SIDE.
ON THE OTHER SIDE OF, ACROSS THE WAY, WE HAVE A, OUR MAJOR PROJECT, OUR FIRST PROJECT WOULD BE, UM, UNDER THE SEAPORT CONNECTIVITY FUND FOR TECH STOCK AND, AND, UH, TO PUT A ROAD IN THROUGH THERE TO GIVE
[00:50:01]
US ACCESS TO SEAWOOD PARKWAY.AND, YOU KNOW, THE REGULAR, I MEAN I SAY THE REGULAR KIND OF ROAD, IT'S THE EXACT SAME KIND OF ROADS WE'VE JUST BUILT.
UM, DOWN THE MIDDLE OF THE PORT, WE LOOKED AT A FOUR LANE ROAD THAT WOULD COME FROM, UH, SEA PARKWAY DOWN TO THE WATERFRONT.
UM, ON ONE SIDE WOULD BE LNG, ON THE OTHER SIDE WOULD BE LAY DOWN AREAS FOR, TO, TO SUPPLEMENT THE SHIP BUILDING OPERATION OVER THERE.
UM, IN AND DAVIES, UM, IS SUPPORTIVE OF THAT.
UM, UH, PHILLIP HAS SAID, LET'S, LET'S DO IT.
THEY, THEY DON'T HAVE ENOUGH LAND.
I MEAN, LITERALLY THEY HAVE ENOUGH LAND TO BUILD THE ICEBREAKERS AND THAT'S WHERE THEY'RE GOING WITH THAT.
BUT THAT'S NOT WHERE THEY'RE STOPPING.
I MEAN, THEY, THEY WANT TO CONTINUE TO GROW THAT AND THEN DO OTHER TYPES OF BUSINESS OVER THERE.
AND SO WHAT I FIGURE WE'LL NEED SUPPORT SERVICES THERE AND, YOU KNOW, THEN IF WE BUILD A GOOD ROAD THERE, THEN OBVIOUSLY THIS PIECE OF LAND HERE, I MEAN, I GOTTA BELIEVE AT SOME POINT IN TIME, UM, THIS PIECE OF LAND RIGHT HERE BECOMES AVAILABLE, UM, TO SUPPLEMENT THESE OPERATIONS BECAUSE THIS IS, YOU KNOW, UM, OBVIOUSLY BELONGS TO PORT OF HOUSTON, BUT, UH, I THINK THAT PORT OF HOUSTON HAS SAID, YOU KNOW, LIKE EVERYONE ELSE, GIVE US A, A DEAL THAT MAKES SOME SENSE TO US.
AND, YOU KNOW, WE DON'T MIND PARTICIPATING, UNLIKE VERY MUCH LIKE WHAT WE'RE TALKING ABOUT UP HERE WITH, WITH THEIR PLAN TO MOVE THE SPOILS AREA AND INCREASE THE SIZE OF THE WATERFRONT ON THE EAST SIDE OF PELICAN ISLAND, WHICH IS, WHICH IS A HUGE DEAL.
FOUR, 4,000, UH, LINEAR FEET OF DOCK OVER THERE.
SO A LOT OF THINGS HAPPEN IN PELICAN ISLAND.
PELICAN ISLAND HAS, UM, GOT A LOT OF, YOU KNOW, UPSIDE TO IT.
AND I THINK THIS IS JUST ONE STEP BECAUSE WE'VE GOT THE ABILITY TO SERVICE OUR CUSTOMER AND, AND OUR CUSTOMER.
AND, AND I'VE SAID THIS BEFORE, THAT, UM, THE PORT CANAVERAL HAS DONE VERY WELL OVER THERE BECAUSE THEY HAVE LNG AND EVERY NEW SHIP, IF YOU NOTICE, EVERY NEW SHIP THAT COMES OUT THE OF EUROPE AND THOSE AREAS ARE COMING TO CANAVERAL BECAUSE THEY HAVE LNG THERE.
AND, YOU KNOW, MIAMI HAS IT ALL, HAS IT ALSO, BUT THEY'RE ALL THE SAME SOURCE.
I MEAN, EVERYBODY'S BRING IT FROM JACKSONVILLE.
EVERYBODY'S BRINGING EVERYTHING ON THE EAST COAST.
I MEAN, SO WE'RE GONNA BE THE, WE'LL BE THE FIRST PORT NOW JACKSONVILLE HAS IT AT THEIR PORT, BUT THEY DON'T HAVE CRUISE SHIPS THERE.
SO I THINK WE'LL BE THE FIRST, FIRST IN, IN THE TEXAS AREA TO BE ABLE TO BUNKER LG, WHICH IS FIRST IN THE WHOLE GULF ACTUALLY.
'CAUSE MIAMI CAN'T PRODUCE IT.
UH, CANAVERAL CAN'T PRODUCE IT.
WELL, AND THESE GUYS HAVE COVERED THE DOWNSIDE BECAUSE WE'VE, YOU KNOW, WE'VE GOT THESE IS CONTAINERS.
WHICH, YOU KNOW, WILL, WHICH WILL ALLOW US TO START FUELING EARLIER.
BUT ALSO, YOU KNOW, WE'VE SAT IN THIS ROOM WITH, UH, THE GOVERNOR OF, UH, VIRGIN ISLANDS, UM, AND JAMAICA'S LOOKING AT THIS STUFF.
THEY'RE ALL LOOKING FOR ISO CONTAINERS OF L AND G.
AND SO THIS IS IN ADDITION TO SUPPLY L AND G, WE ALSO HAVE THE ABILITY TO MOVE L AND G.
THE ECONOMICS OF THIS TOO IS ACTUALLY L AND G IS CHEAPER THAN BRINGING DIESEL TO BURN AND OPERATE.
AND THE ISLAND COMMUNITIES DON'T LIKE ALL THAT BLACK SMOKE COMING UP OFF OF THEIR BASE BY BURNING DIESEL FUEL.
AND ONCE YOU CREATE THAT SUPPLY CHAIN, WHICH WE WANT TO DO FROM HERE, IT JUST HAPPENS AND IT JUST GOES, IT WILL BE SUPPLEMENT, IT'LL BE POWER GENERATED BECAUSE THAT SUPPLY CHAIN EXISTS NOW.
I MEAN, THERE'S L AND G GOING TO THESE ISLANDS NOW, BUT THEY, IT'S NOT ENOUGH.
ANOTHER THING IS THE, THE CRUISE, UM, INDUSTRY IN GENERAL THAT'S CREATING THESE DESTINATION FACILITIES ALL NEED L AND G TO CHOSE FACILITIES.
AND I'VE MET WITH RC ABOUT THE ROTAN OPERATION THEY NEED.
THEY'RE GONNA DOHO POWER IN L AND G DOWN THERE.
SO YEAH, THERE'S, THE DEMAND IS JUST TO GROWING.
AND RICHARD, I'LL MENTION, SIR, OUR GOAL IS TO KEEP THE PLANT ITSELF AS FAR OFF THE WATERFRONT IS POSSIBLE BECAUSE WE WANT THE WATERFRONT RETAINED FOR THE PORT FOR CARGO OPERATIONS.
AND WE BUILD AND WE BUILD A TANK OVER THERE.
AND THAT WAY WE CAN TAKE L AND G FROM OTHER PLACES.
WE'LL ALSO HAVE A C AND G, UH, OPERATION OVER THERE.
SHOULD THE PORT WANT TO TURN THEIR VEHICLES INTO TO C AND G VEHICLES, WE'LL BE ABLE TO FUEL C AND G VEHICLES RIGHT HERE.
ANOTHER PART OF YOUR GREEN MARINE OPERATION.
AND, AND MITCH, YOU MENTIONED, UM, A SMALL SCALE ELECTRICAL GENER YES, SIR.
UM, WHICH IS SOMETHING THAT WE ALL SHOULD BE LOOKING AT.
I MEAN, I THINK, AND YOU WANT TO TALK JUST BRIEFLY ABOUT WHAT THAT, JUST BRIEFLY, WE KNOW THAT, UH, FOR A LONG PERIOD OF TIME, YOU'VE BEEN LOOKING AT SHORE POWER NEEDS OVER HERE IN VARIOUS OPERATIONS.
AND SOME OF THOSE PLANS ARE, UH, QUITE COSTLY ON THE BIG SCALE.
WHAT WE'VE BEEN LOOKING AT, AND I WILL SAY IT'S VERY PRELIMINARY, IS ABILITY TO DO SMALL SCALE POWER, UH, GENERATION AT EACH
[00:55:01]
TERMINAL AND FUELING THAT WITH LNG.NOT ONLY IS IT CLEAN, IT'S SMALLER SCALE, IT'S SIGNIFICANTLY LESS CAPEX TO MAKE IT WORK.
SO WE'RE LOOKING AT A VARIETY OF OPTIONS ALONG THAT LINE.
AND I'LL ALSO SAY RIGHT NOW, WE STILL RIGHT NOW HAVE ACCESS TO ABOUT A 20 MEGAWATT PORTABLE POWER PLANT THAT WE CAN ACTUALLY BRING OVER AND SET UP HERE, SHOULD WE HAVE EXCESS GAS AND WE CAN BEGIN GENERATING ELECTRICITY ON THAT SIDE.
BUT LONG TERM THE PLAN WITH A NEW PIPELINE AND WE REALLY SEE WITH DAVIES AS A REAL KICKOFF, THE REST OF THAT JUST EXPLODES AND THAT EXPLODES OVER THERE.
YOU'RE GONNA NEED POWER GENERATION ON PELICAN ISLAND.
YOU'RE ABSOLUTELY GONNA NEED IT
THEY HAVE THOSE CONVERSATIONS NOW.
WELL, AND WITH THAT, MR. CHAIRMAN, I WOULD ALSO SAY I DO DRAW YOUR ATTENTION TOO, THAT L AND G HAS A ZERO FLASHPOINT.
I COULD POUR IT OUT ON THIS TABLE AND YOU TOOK A CIGARETTE LIGHTER TO IT.
L AND G IS, IS A LOT MORE STABLE THAN WHAT PERCEPTION MIGHT BE OF THAT.
ANY OTHER QUESTIONS FROM THE BOARD ON THIS? HAS, THIS HAS BEEN VERY, UH, VERY INFORMATIVE.
I KNOW WE'VE TALKED A LOT OVER, OH, WE'VE BEEN TALKING ABOUT NUMBERS OF YEARS.
I MEAN, AND I KNOW IT'S BEEN A, YOU KNOW, THIS HAS BEEN A QUITE A JOURNEY, STEPS FORWARD AND BACK.
BUT I MEAN, IT'S REALLY EXCITING TO SEE THIS KIND OF COMING TO THE POINT OF REALLY BECOMING REAL BECAUSE, I MEAN, WE'VE TALKED ABOUT IT.
IT'S, IT'S A HUGE ECONOMIC THING FOR THE PORT AND FOR THE REGION.
IT, IT'S ENVIRONMENTALLY, UH, SOUND AND IT DRIVES A WHOLE BUNCH OF KIND OF NEW POTENTIAL BUSINESS OPPORTUNITIES FOR US.
PLUS, LIKE YOU SAID, I MEAN ALL OF THAT FOR THE PORT IS, YOU KNOW, ITS REVENUES IN VARIOUS FORM AND F CHECKS BOXES FOR GREEN MARINE CHECKS, BOXES.
IT GETS US, IT JUST OVERALL REDUCES EMISSIONS.
I MEAN, WHICH IS A REALLY GOOD, WELL, AND ROGER AND I TALKED ABOUT OTHER CARGOES THAT WE KNOW WHERE THEY ARE, THAT WE COULD PROBABLY GO WITH YOU AND HELP GET ONCE THE L'S OPERATIONAL HERE.
YEAH, I JUST HOPING, I MEAN, YOU TALK ABOUT THE FUTURE OF GALVESTON AND THE NEXT GENERATION.
THIS IS A, I THINK OPENS UP A WHOLE NEW HORIZON OF, OF THINGS THAT'LL LEAD TO ONE MORE TOOL IN YOUR TOOLBOX.
AND YOU'LL BE THE ONLY ONE MORE CARGO IN THE COUNTRY IN THE GULF THAT HAS THE LNG PRODUCTION AND BUNKERING ASSISTING 800 YARDS FROM ONE OF YOUR BIGGEST CRUISE STOCKS.
IT GIVES US ANOTHER COMPETITIVE DEAL.
WHAT'S THE COMPETITIVE, THAT'S WHAT'S THE BRANDING WILLIE? UH, WITH THE, IF WE HAD EXPANSIONS, IT SOUNDS LIKE WE WOULD NEED IT.
AND YOU SAID, YOU MENTIONED VIRGINIA POINT.
ARE THOSE LICENSES AND PERMITS, DO THEY HAVE A TIMELINE OR DEADLINE ON THEM? WELL, NO.
VIRGINIA POINT WOULD BE OUR SOURCE OF GAS.
UH, WE FIGURE, UH, WELL, I'LL LET AUSTIN TALK ABOUT, 'CAUSE HE'S ALREADY DONE THE PLANNING WORK THAT'S, HE ACTUALLY USED TO HAVE A PIPELINE BUILDING COMPANY, SO HE KNOWS HOW TO DO THIS.
BUT TALK ABOUT WHAT HE PUT IN PLACE THERE, THERE THERE'S CAPACITY IN TEXAS CITY THAT'S AVAILABLE.
YOU KNOW, OBVIOUSLY YOU HAVE TO RESERVE THE CAPACITY TODAY.
THERE'S CAPACITY AVAILABLE TO BUILD A NEW PIPELINE AND SUPPLY THE EXPANSIONS THAT WE'RE TALKING ABOUT FOR OUR LNG FACILITY ENDING ABOVE AND BEYOND THAT, WE'D HAVE TO DO A LOT MORE RESEARCH AND, AND DO MORE STUDIES ON, UM, THAT GETTING ACROSS THE BAY WILL TAKE QUITE, THERE'S PERMITING ASSOCIATED WITH IT.
THERE'S RIGHT OF WAY TO ACQUIRE, SO THAT, THAT'S A MINIMUM 12 MONTH, YOU KNOW, ENDEAVOR RIGHT THERE JUST TO DO THAT.
SO IT IS PROBABLY A TWO YEAR HORIZON ON A NEW PIPELINE COMING, COMING ACROSS THE BAY TO GAL.
YOU SAID YOU ALREADY HAVE SOME RIGHT OF WAYS? WELL, WE HAVE, WE HAVE A IDENTIFIED, IDENTIFIED RIGHT.
OF WAYS THAT, THAT WE TALKED TO THAT WE CAN ACQUIRE.
WE'VE BEEN OFFERED TO ACQUIRE.
SO, UH, UH, BUT AGAIN, WE'D PROBABLY WORK WITH A THIRD PARTY AND WE TRY TO STAY IN OUR LANE AS WE KNOW WHAT WE'RE DOING.
AND WE'VE TALKED WITH MULTIPLE THIRD PARTIES.
ONCE YOU HAVE THE DEMAND ON THE BACKSIDE, GETTING A PIPELINE FINANCE IS PRETTY EASY PROPOSITION.
AND HONESTLY, A MIDSTREAM PROVIDER WOULD BE HIGHLY INTERESTED IN THIS WITH A DOWNSTREAM CUSTOMER LIKE US.
SO, MAKES, I IMAGINE I'LL GET A COUPLE PHONE CALLS OUT OF THIS LY.
ANY OTHER QUESTIONS, GUYS? WE, SORRY WE TOOK SO LONG.
NO, VERY, VERY GOOD PRESENTATION.
REALLY INFORMATIVE AND GET GOOD FOR THE PUBLIC ALSO HERE AND, UH, HEAR WHAT'S GOING ON.
AND WE LOOK FORWARD TO THE NEXT STEPS.
AND I THINK YOU HEARD OUR EARLIER CONVERSATIONS.
I MEAN, WE'RE, WE'RE USED TO ON TIME ON BUDGET SAFE PROJECTS THAT WORK.
SO YOU GUYS HAVE YOUR, YOU GUYS HAVE YOUR WORK CUT OUT FOR US TO MEET THE STANDARD OF PROJECTS IN MORE OF GALVESTON HERE, BUT WE LOOK FORWARD TO IT.
I I DID HAVE ONE OF THE QUESTIONS IN IT.
IT MIGHT BE ONE Y'ALL, FOR ONE OF Y'ALL.
WHAT IS THE, UH, NOMINAL PRESSURE USUALLY IN THIS SYSTEM? SO, UH, THE PIPELINE CURRENTLY COMING IN IS GONNA FEED US ABOUT 265 PSIG.
WE'RE GONNA RAISE THAT PRESSURE UP TO UNDER PROBABLY SOMEWHERE AROUND 900 PSIG.
WE'RE GONNA HAVE, UH, SOMEWHERE AROUND 1000 TO 1100 MA UH, MAXIMUM ALLOWABLE WORKING PRESSURE.
AND SO ALL THE SAFETY DEVICES AND RELEASE SETS WILL BE SET 10% BELOW THAT.
SO IF THAT 900 STARTS CREEPING UP, YOU'RE GONNA KNOW BEFORE, BEFORE IT HITS THE LIMITS OF THE MATERIAL.
UM, SO, WHICH IS PRETTY COMMON.
I MEAN THE, THE PIPELINE RUNNING THROUGH GALVESTON'S PROBABLY RUNNING AT FIVE TO 800 PSIG ALREADY.
SO WE'RE GONNA BE WELL WITHIN THAT RANGE.
[01:00:01]
L AND G'S ACTUALLY STORED IN A MUCH LOWER PRESSURE.SO THE L AND G WILL, UH, BE PRODUCED AT 30 PSIG AND STORED IN THE TANK AT ONE PSIG.
AND THEN IT'LL BE PUMPED OUT AT FOUR BAR.
WHICH IS WHAT, UH, 40 TO 60 PS IG, SOMETHING LIKE THAT.
I DON'T REMEMBER THAT THE OFF THE TOP OF MY HEAD, BUT SOMETHING.
SO I GREW UP WORKING IN THE TOM O'CONNOR GAS FIELD DOWN IN SOUTH TEXAS.
THE GAS CAME OUT OF A LITTLE OVER 2000 PSI.
WE'LL BE, SO THE PIPELINE COMING TO THE ISLAND STILL DOES THE PIPELINE COMING.
THE ISLAND RIGHT NOW IS OVER 50 YEARS OLD AND IT'S ONLY OPERATING AT ABOUT 300 RIGHT NOW.
WE LOOK FORWARD TO THE NEXT STEPS.
WE WILL GIVE YOU MONTHLY UPDATES VIA THE CHAIRMAN.
APPRECIATE, YOU KNOW WHAT'S HAPPENING.
[C.1 APPROVAL OF THE MINUTES]
TO GENERAL BUSINESS.UH, SEE ONE, WE GOT APPROVAL OF THE MINUTES.
ANY DISCUSSION CHANGES, UPDATES? ANGIE DOES HER USUAL WONDERFUL JOB OF CAPTURING THE CHAOS HERE BEFORE WE, WHAT WE DISCUSS.
SO, UH, ALL IN FAVOR OF APPROVAL, RAISE YOUR HAND.
ANY OPPOSED? SO MOTION CARRIES UNANIMOUSLY.
ANGIE, I DON'T HAVE ANY PAPERS IN FRONT OF ME, SO I'M ASSUMING NO, NO PUBLIC COMMENTS.
[C.3 PORT DIRECTOR'S REPORT]
MOVING ON TO C3, THE COURT DIRECTOR'S REPORT.CAN I COME TO WORK NEXT MONTH? I WILL.
IT'S, IT'S, THEY'RE LOOKING FOR.
UM, YOU KNOW, SOMETHING, UH, SOMETHING THAT'S A LITTLE DIFFERENT THIS MONTH.
UM, AS YOU KNOW, THE ARROWS ARE GOING UP, THEY'RE HURTING AND THAT'S A POSITIVE, UM, UH, UH, THING HAPPENING HERE AT TO PORT.
UM, YOU KNOW, GETTING MORE AND MORE, UH, PEOPLE GETTING MORE AND MORE COMFORTABLE WITH WHAT'S HAPPENED HERE AND THE CONSTRUCTION, YOU KNOW, THEY CAN SEE THE END OF, WE'VE MET WITH A COUPLE OF CARRIERS WITH STEVE DOORS OVER THE, OVER THE LAST SIX WEEKS.
UM, A LOT OF INTEREST IN, UH, WANTING TO BRING MORE PRODUCT IN HERE AND WANTING TO, UH, GET MORE CONTROL OF THE WEST END MORE LEASES.
AND SO IT'S, IT'S WHERE WE WANTED TO BE AND WE WERE ABLE TO DO WHAT WE PLANNED TO DO.
AND THAT WAS CREATE SOME LEVERAGE FOR OURSELF.
AND THAT, I THINK WE'RE IN A GOOD, GOOD POSITION NOW TO BE ABLE TO MOVE FORWARD WITH, UM, SOME, YOU KNOW, LONGER RANGE, UH, PLANNING AND ALL THAT STUFF BACK FROM YOU GUYS.
YOU CAN SEE THE NUMBERS, UH, LOOK BETTER ALREADY OVER LAST YEAR.
UM, I'M REALLY POSITIVE ABOUT, UH, YOU KNOW, WHAT'S, WHAT'S HAPPENING OUT THERE.
UM, YOU CAN SEE WE'RE JUST A LITTLE BIT UNDER, UH, WHERE WE WERE, WHERE WE WERE ON BUDGET, UM, BUT CERTAINLY OVER 25,000 OVER LAST YEAR.
UM, AND THE REVENUES WERE SHOWING THAT, UM, SOME OF THE ESCALATIONS AND STUFF ARE KICKING IN NOW.
AND SO WE'RE SEEING THE REVENUES CLIMB AT THE SAME TIME.
WE'RE 29 SHIPS OVER WHERE WE WERE LAST YEAR, UM, AND WE GOT MORE WIND COMPONENTS COMING IN.
UM, SO, UH, YOU KNOW, WE'RE, IT'S, THE FUTURE IS BRIGHT ON THE, ON THE CARGO SIDE.
WE'LL CONTINUE TO DEVELOP WHAT WE'VE, UH, FIXED AND GOT SOME MORE, UH, MORE TO GO.
SO, FINANCIAL SUMMARY, UM, WE WENT OVER THIS LAST MEETING, YOU CAN SEE THERE'S A YEAR TO DATE NUMBERS.
UM, OUR CASH FLOW, AND YOU CAN, YOU CAN SEE IT IN OUR CASH BALANCES, UM, IS BEGINNING TO, TO GROW.
UM, YOU KNOW, WITH, AS WE, AS WE KIND OF HONE IN ON THE, THE ENDING OF
[01:05:01]
OUR MAJOR PROJECTS, MAJOR EXPENDITURES ABOUT, GO ABOUT 11 MILLION I GUESS TO GO.UM, A COUPLE OF GRANTS THAT WE'RE STILL LOOKING AT.
AND ONE OF THE EDA IS ONE OF THE, IS ONE OF THE GRANTS I'VE ASKED, UH, LAURA TO START LOOKING AT, UH, COULD WE POTENTIALLY GET SOME FINANCING FROM THE EDA FOR THESE PROJECTS WE TALKED ABOUT EARLIER WITH THE DOCKS ON PELICAN ISLAND? AND THOSE ARE, THOSE ARE ROLLING GRANTS.
WE'VE RECEIVED ONE, ONE GRANT FROM EDA ON CRUISE TERMINAL 16 A WHILE BACK.
SO WE'RE GONNA START TALKING TO THEM.
THE P THE PID, THE P-I-D-D-P, UM, UH, THAT'S GETTING READY TO COME OUT.
UH, YOU KNOW, THAT'S, WE, WE HAVE A PROJECT THAT, UH, WE'RE PUSHING ON THAT IT WOULD BE THE, UH, PELICAN ISLAND, UM, DOCK, ALSO IN THE PIDP.
UM, THE PROBLEM WITH THAT IS I THINK THERE'S, THEY, THIS CURRENT ADMINISTRATION HAS PRETTY MUCH MAINTAINED ABOUT 500 MILLION, UH, TO GO OUT, UH, AND SEVERAL, SEVERAL PORTS AROUND US GOT MONEY ON THE PIDP LAST TIME.
AND SO, YOU KNOW, WE'RE, WE'RE FOCUSING ON THAT.
THAT'S GETTING READY TO, UH, UH, TO, WE HAVE TO APPLY FOR THAT IN JUNE.
UM, AND YOU CAN SEE WE, WE'VE GOT A LOT OF GRANTS.
THESE ARE ALL THE GRANTS WE HAVE WORKING RIGHT NOW.
AND YOU CAN SEE WE, WE'VE TALKED ABOUT THESE IN BITS AND PIECES ON THE HGHC, THE DOT, THE, THE INTERMODAL, UM, YOU KNOW, THE TRANSPORTATION ALTERNATIVES, WHICH IS THE PART OF THE COMPREHENSIVE SAFETY PLAN DOWN HERE ON, ON, UH, HARBORSIDE DRIVE.
AND THEN THE SEAPORT CONNECTIVITY, UM, WAY FINDING A LOT OF THESE THINGS, YOU KNOW, ARE JUST REALLY FEEDING INTO THIS MOBILITY PLAN.
I MEAN, WE ARE GONNA BE STUDYING THE HECK OUT OF, UH, HARBORSIDE DRIVE AND EVERY STREET AROUND IT.
AND, AND, UH, AND, AND, AND THEN THE GOOD THING IS WE HAVE THE GRANT MONEY TO DO THAT.
WE'LL GET THAT DONE AND, UH, CONTINUE TO MOVE FORWARD.
UH, THE SUPPORT SECURITY GRANTS, UM, OBVIOUSLY WE RELY ON THOSE EVERY YEAR TO UPGRADE OUR SECURITY SYSTEMS, CAMERAS AND THOSE KIND OF THINGS.
AND SO THOSE ARE, HERE'S THE CURRENT PLAN, THE CURRENT SECURITY GRANTS WE HAVE OPEN RIGHT NOW.
UM, I THINK WE, WE HAVE A QUESTION OF WHERE, WHERE'S EV EV CHARGING? SO WHAT WE DID, WE PUT TOGETHER A SLIDE THAT BASICALLY SAYS, YOU CAN SEE, UM, WHERE WE HAVE EV WE PRETTY MUCH HAVE COVERAGE ALMOST EVERYWHERE IN THE AREA WITH EV.
SO, YOU KNOW, WE, WE, IF YOU REMEMBER SEVERAL YEARS AGO, WE GOT A GRANT, UM, I THINK IT WAS LIKE 85, 80 5,000 TO, UH, INSTALL THESE.
WE HAD A COUPLE STARTS STOPS ON THESE BECAUSE WE, WE, WE HAD CONSTRUCTION GOING ON, SO WE INSTALLED SOME AT ONE POINT IN TIME, THEN HAD TO MOVE 'EM BECAUSE OF THE NEW TERMINAL.
BUT YOU CAN SEE RIGHT HERE IS, IS A, UH, IS THE LOCATION WHERE WE HAVE EV CHARGERS ON AB AND EXPRESS PARKING.
IF PEOPLE GET IN THERE AND USE THEM OR THEY HAVE TO BE PAID, YOU HAVE TO GET PAST THE GATE.
UM, YEAH, YOU HAVE TO GET PAST THE GATE.
I THINK THERE'S O THERE, THE ONES THAT, UH, CT 10 ARE OPEN TO THE PUBLIC.
YOU HAVE TO GO THROUGH GATE ACCESS TO GET THOSE.
UM, THIS, RIGHT NOW THE STATE, UH, DEPARTMENT OF TRANSPORTATION IS UNDERWAY WITH A, UH, STATE ECONOMIC IMPACT STUDY.
AND THIS IS BEING DONE, UH, YOU KNOW, IT'S CURRENTLY UNDERWAY.
THEY'VE, UH, YOU KNOW, THEY'VE ENGAGED MARTIN AND ASSOCIATES THE SAME, UH, GROUP THAT HAS DONE OUR STUDIES ON OUR MASTER PLANS.
THEY'VE ENGAGED THEM TO, TO, TO, UH, LOOK AT CARGO AND ALL PORTS, AND THEN OBVIOUSLY US BEING THE ONLY CRUISE PORT.
SO THEY ALSO HAVE, UM, DONE THE WORK FOR THE CRUISE BUSINESS.
UM, AND ACTUALLY WE, UM, OUR STAFF OVER THE LAST COUPLE OF WEEKS, UM, SELF-PERFORMED, UM, SOME OF THE SURVEYS BECAUSE WE NEEDED, WE NEEDED, UH, WE WANTED COVERAGE OF THE DOWNTOWN AREA AND THE TERMINALS, AND WE WANTED TO UNDERSTAND WHAT OUR CUSTOMERS WERE THINKING.
SO WE, WE DID, UH, I THINK IT WAS TWO DAYS.
UM, WE HAD OVER A HUNDRED AND DO YOU REMEMBER HOW MANY IT WAS 170 OR SOMETHING? YEAH, I THINK THAT WAS ONLY TWO DAYS, BUT WE EXPANDED EVEN MORE.
AND I THINK WE DID SEVERAL DAYS.
YEAH, WE DID, WE DID TWO DAYS WITH OUR STAFF UP HERE.
BUT THEN THE CREWS, MAN, THE TERMINAL STAFF, THEY DID, UM, FOUR DAYS.
SO WE'RE GETTING A GOOD SAMPLE OF WHAT OUR CRUISE CUSTOMERS ARE THINKING.
IS, IS THIS, UM, ECONOMIC IMPACT STUDY BEING DONE BY
[01:10:01]
THE MARITIME BRANCH OF NO.THIS OR BIGGER TEXTILE? WELL, IT'S A BIGGER TECH STOCK.
ROGER, I CAN JUST SAY OVER THE WEEKEND I NOTICED TEXTILE HAD A, A FACEBOOK POST ABOUT THE IMPACT OF MARITIME.
AND IN FACT, IT DID MENTION GALVESTON AND THE CRUISE BUSINESS.
I THOUGHT THAT WAS, THEY'RE ACTUALLY MARKETING THAT A LOT MORE.
AND, AND THAT'S WHAT THEY WANT KNOW, THEY WANT TO UNDERSTAND BECAUSE THEY, THEY ARE, UH, VERY MUCH SUPPORTIVE OF WHAT WE'RE DOING HERE.
AND SO I THINK IT'S, IT'S, IT'S GOOD FOR US BECAUSE THEY, THE, YOU KNOW, TECH SUPPORT ASSOCIATION WOULD HAVE DONE THIS OURSELVES AND HAVE IN THE PAST.
BUT, UH, YOU KNOW, TDO REALIZES THEY NEED TO STEP UP AND UNDERSTAND MORE OF WHAT THEY'RE DOING IN TERMS OF THE MARITIME INDUSTRY, UH, PROCUREMENT THINGS WE'VE GOT GOING ON.
PROCUREMENT, WE, WE'VE, UH, WE'VE DONE PROCUREMENT ON, UH, UM, THE HGAC PROJECTS.
IF YOU REMEMBER, WE, WE PUT THOSE TWO PROJECTS TOGETHER.
UM, THE, THE OVERHEAD HIGHWAY AND, AND THEN THE, UH, FEASIBILITY STUDY OF THE PROPERTY AT, UM, JUST WEST OF US WAYFINDING, UM, HAS BEEN ADVERTISED.
AND THE FINAL SCOPE IS, SHOULD BE NEXT, NEXT MEETING.
YOU'LL BE ABLE TO LOOK AT THAT.
UM, WE'LL BRING THAT FORWARD JANITORIAL.
UM, THESE ARE JUST THE AVERAGE, YOU KNOW, HERE'S SOLICITATION HERE ON THE 16TH STREET, UH, TRAFFIC SIGNAL.
SO THIS IS WHAT WE'RE ACTIVELY HAVE PROCUREMENT OPEN ON RIGHT NOW.
UM, THE SAFETY COMMITTEE, UM, YOU HEARD FROM, UH, ANGIE LAST MEETING, KIND OF GIVING YOU AN UPDATE ON WHERE WE WERE.
DO YOU HAVE ANYTHING YOU WANT TO SAY, ANGIE? UH, BE A LITTLE.
SO THIS, UH, THESE ARE ACTUALLY APRIL NUMBERS.
SO OBVIOUSLY THEY, THEY'RE TRENDING DOWN.
UM, AS YOU SEE FOUR FOR TENANTS, UH, INCIDENTS IS THREE FOR GUESTS.
UH, ONE NEAR MISS FOR TENANT AND EIGHT FOR GUESTS.
UM, SO THERE, THERE'S STILL SLIPS, TRIPS, FALLS, UM, BUT THE NUMBERS ARE CAME DOWN, WHICH IS GOOD.
UM, THE ONE, THE SAFETY CARD WINNER WAS, UH, CHRIS IN DISPATCH.
AND BASICALLY HE WAS DOING WHAT? MONITORING CAMERAS WHEN HE NOTICED THE CONTRACT WORKER, UH, POWER WASHING IN THE TERMINAL, UH, STAIRS.
SO WHEN HE WENT TO, UM, HE WALKED UP THERE TO INVESTIGATE, BASICALLY THE GUY WAS SPRAYING DOWN AND HE HAD A GAS POWER WASHER INSIDE AND HAD ONLY BEEN WORKING FOR MAYBE LIKE 20, 25 MINUTES.
AND HE STOPPED WORK, EXPLAINED TO THE GUY, YOU KNOW, YOU CAN'T USE THESE INDOORS, UH, SAFETY RISKS.
STOPPED WORK, NOTIFIED HIS, UH, SUPERVISOR POINT OF CONTACT, NOTIFIED MYSELF, UM, TURNED INTO A GREAT SAFETY EDUCATION MOMENT.
THAT'S KIND OF, THAT'S WHAT WE WANT TO PUSH FOR IN COURT.
YOU KNOW, EVERYBODY HAS STOP WORK AUTHORITY.
SO, AND THEN APRIL'S, UH, SAFETY EMPHASIS WAS HUGE STRESS, UH, FOR THE MONTH.
THESE ARE APRIL NUMBERS, RIGHT? THESE ARE APRIL NUMBERS.
I DIDN'T CATCH, I DIDN'T CATCH THAT WHEN SHE, UH, BUILT THE SLIDE.
QUESTION OR COMMENTS? RANDY COMMENTS.
UH, PARKING GROUND TRANSPORTATION FOR APRIL, UM, 2.8 MILLION IN GROSS REVENUES.
UH, YOU KNOW, STILL 16,004, OH, RESERVATIONS ON BOOKS.
UM, THEY'RE DOING AN EXCELLENT JOB ON MARKETING.
I NOTICED TO SEE THAT ALMOST EVERY DAY ON THE FACEBOOK AND THOSE AREAS.
AND WE'RE ACTUALLY LOOKING AT, I DON'T KNOW IF WE TALKED TALK ABOUT IT HERE, BUT WE JUST, UH, YOU KNOW, UH, CONTINUED THE PLAN OF BLAST FOR PARKING.
AND THEY'RE, THEY'RE GOING THROUGH THE PROCESS OF DESIGNING WHAT NEW WRAPS ON THOSE, JULIO, WRAPPING THE NEW, THE ONES WE GET A WHOLE BUNCH OF NEW, UM, SHUTTLE BUSES, PART OF THE CONTRACT.
AND THEN, SO RIGHT NOW WE GO THROUGH SOME DESIGN ON IF THEY'RE GONNA WRAP THOSE IN JULIO.
DO, DO WE, UH, LET ME SEE IF I, LET ME SEE IF I CAN SAY THIS RIGHT.
DO WE HAVE THE AUTHORITY TO UTILIZE THE CREDIT CARD INFORMATION THAT YOU GATHER? NO, WE DON'T, WE DON'T GATHER IT.
WE DON'T KEEP CREDIT CARD INFORMATION.
IT'S THIRD PARTY WHO DOES THAT FOR US.
DO WE HAVE THE AUTHORITY TO USE IT THOUGH, TO USE THE CREDIT CARD INFORMATION? RIGHT? NO, NO CREDIT CARD INFORMATION IS USED FOR ANY, ANY, IN FACT, WE DON'T EVEN HAVE VISIBILITY TO IT.
THE SYSTEMS DON'T GIVE YOU TO CREDIT CARD INFORMATION.
SO YOU, YOU DON'T HAVE A PLACE WHERE YOU CAN GO TO SEE WHERE PEOPLE ARE COMING FROM? UM, WE, THAT WE
[01:15:01]
USE OUR RESERVATION SYSTEM.SO YOU CAN, SO, SO YOU CAN ACCESS THAT TO THE RESERVATION.
IT, IT ISN'T A MANDATORY FIELD, UH, BECAUSE WE WANT TO COMPLETE THE TRANSACTION.
WE DON'T MAKE IT VERY BURDENSOME.
TO GATHER A WHOLE LOT OF INFORMATION.
SO BASED ON THE PEOPLE THAT DO PROVIDE IT, WE DO GET SOME GEOGRAPHICAL INFORMATION.
SO DO WE HAVE THE AUTHORITY TO USE THAT INFORMATION? YES, WE USE IT FOR MARKETING PURPOSES.
AND WE COULD PROVIDE IT TO OTHER ORGANIZATIONS FOR MARKETING PURPOSE PURPOSES.
BUT WE COULD, COULD WE, UM, I CAN'T, I CAN'T THINK OF A SCENARIO WHERE I WOULD DO THAT
'CAUSE OBVIOUSLY THERE'S A, THERE'S A TERMS AND CONDITIONS IN, IN THE SOFTWARE.
FOR, YOU KNOW, OBVIOUSLY WE HAVE THE RIGHT TO USE IT, BUT I CAN'T THINK OF A SCENARIO WHERE, THANK YOU.
UH, JUST KIND OF AN UPDATE ON THE, UH, PASSENGER BOARDING BRIDGE, UH, REFUND SCENARIO.
UM, I DON'T KNOW, BRETT, DO YOU HAVE ANY, ANYTHING UPDATED ON THIS? ANYTHING? NOTHING NEW, BUT AS YOU MENTIONED, IT'S GOTTA BE CRITICAL OF THE FACT THAT WE MAY GET REFUNDED FOR THIS.
HOWEVER, THEY WILL BE LOOKING TO APPLY OTHER TARIFF, OTHER MEANS OF TARIFFS FOR THIS, UH, THE WEIGHT OF THE STEEL, THE LOCATION OF THE STEEL.
AND AT THAT TIME YOU HAD UP TO 50% OF CERTAIN LOCATIONS.
SO THAT COULD DEFINITELY REDUCE, UH, WHATEVER, UH, WE WOULD GET.
BUT NO, WE ARE, WE'RE WORKING SIDE BY SIDE, SAY WORK SIDE BY SIDE, SPEAKING WITH, UH, A DELTA ALONG THE ENTIRE WAY.
WHATEVER YOU GET IS FOUND MONEY.
BUT, BUT IT'S, IT'S A SUBSTANTIAL AMOUNT OF MONEY IF WE GET MILLION DOLLARS ROUGHLY.
BUT WOULD THEY, WOULD IF A DELTA, UH, IF ADEL HAD OTHER PENALTIES AGAINST THEM, WOULD THEY TAKE IT OUT OF THAT POT? OR DO YOU KNOW? I DON'T BELIEVE SO.
TO THEIR, UH, THEIR SHIPPING OF THAT SPECIFIC ITEM.
THAT SPECIFIC TIME FOR WHAT'S ON RECORD.
ONE OF THE THINGS I THINK THEY'RE LOOKING AT IS, AND I THINK I MENTIONED SINCE THE LAST MEETING IS, IS SOME OF THE RAW PRODUCTS THAT THEY USE SUBJECT TO TARIFFS.
I THINK THIS IS SOMETHING THAT, UH, RAW MATERIALS, THAT THIS IS SOMETHING THAT, YES, THE FEDERAL GOVERNMENT DOESN'T WANT TO GIVE THIS MONEY BACK, OBVIOUSLY.
AND SO, YOU KNOW, THEY'RE TRYING TO FIGURE OUT IF THERE'S A WAY THEY CAN RETAIN SOME OF IT.
AND I, I WOULD SUSPECT THEY MAY BE SUCCESSFUL IN SOME OF THAT.
I MEAN, THEY'RE, THEY'RE TAKING FACTS AND, AND DOING INVESTIGATIONS AND STUFF, AND I, I, WE KNOW THAT THEY'RE, WE KNOW THAT THEY'RE COMMUNICATION TO DELTA, OH, HURRICANE TIME, EXCEPT MAYBE WON'T GET ONE.
BUT YOU WANNA SAY ANYTHING? I'M NOT GONNA JINX US TO WHAT, UH, THE NATIONAL WEATHER SERVICE IS STATING ABOUT DEL NINO.
UH, BUT EITHER WAY, WE'RE GOING TO PREPARE.
THE BIG KEY ON THIS IS WE ARE GETTING THE, UH, THE HURRICANE PLANES FROM OUR TENANTS, REVIEWING THOSE, WHETHER OUR HURRICANE TOOLKIT TOGETHER FOR OUR PUBLIC DRIVE SO EVERYBODY HAS ACCESS, UH, WHETHER THEY ARE IN THEIR OFFICE OR AT HOME.
UH, THE OTHER THING IS TO, IF ANYBODY'S AVAILABLE, OUR ANNUAL HURRICANE MEETING IS GOING TO BE MONDAY, JUNE 22ND AT TERMINAL 16, FROM ONE TO 3:00 PM WE HAVE THE NATIONAL WEATHER SERVICE, UH, THE UNITED STATES, UH, COAST GUARD, AS WELL AS EMERGENCY MANAGEMENT AND PORT STAFF.
AND YOU REQUIRE EVERY ONE OF OUR TENANTS TO, UH, SUBMIT A OKAY.
THAT IS IN THEIR ACTUAL LEASE OF THE NEXT ALRIGHT.
NOT, NOT TOO MUCH UPDATE ON THIS, UH, SINCE THE FIFTH.
BUT, UH, THE CONTRACTOR FOR THE ARMY CORPS, MIKE HOOKS, CONTINUES TO, UH, WORK, UH, DATE LOOKS TO BE, UH, OBVIOUSLY IN OCTOBER.
UM, THE CHANNEL EXTENSION, TOTAL CHANNEL EXTENSION SHOULD BE COMPLETE SOON.
AND WE'RE WORKING WITH THEM JUST TO GET SOME QUOTES ON POTENTIALLY WHAT THEY COULD DO, UH, WHILE OUR PASSING BY SOME OF OUR FACILITIES ON THE EAST END, INCLUDING THE TURNING BASE THAT RESTRICTIONS IS, IS PRETTY DEEP.
FROM OUR PAST, YOU KNOW, THE GOOD NEWS, IT'S BEEN LIKE THAT FOR A WHILE.
AND I WILL SAY, UH, I THINK THAT, UH, I KNOW THAT RANDY WEBER AND YOU SAW, MADE AN ARTICLE PAPER ABOUT IT, UH, WHERE WE WERE SHORT ABOUT 15 MILLION ON, ON THE DREDGE IN FUNDS FOR NEXT YEAR.
AND, UH, SO THAT'S BEEN PUT INTO, IT LOOKS LIKE WE'RE PROPERTY TOGETHER.
WE'VE GOT THE MOST MONEY WE'VE EVER RECEIVED AT ABOUT 43 40 $4 MILLION, BUT WE'RE SHORT.
SO WE'RE GONNA HAVE TO IN THE COMMUNITY FUNDING, UH, OPPORTUNITY 15.
[01:20:01]
UH, JEFF, THANK YOU, ROGER.UM, YEAH, ON THE PROJECT SIDE, UH, NOT A LOT OF CHANGE HERE.
UH, STILL WRAPPING UP THE, THE, UH, FINAL, I THINK WE'RE, WE HAVE A FINAL WALKTHROUGH ON THE, THIS
UM, SO, SO THOSE ARE WRAPPING UP, GETTING THOSE UNDERWAY.
WE'VE GOT AHEAD OF US, THE, THE WALKWAY PROJECT WHERE I'M ASSUMING SOME DESIGN PERIOD IN HERE RIGHT NOW.
AND THAT'S WHY YOU SEE THAT SLID OUT, UH, FURTHER.
UM, WE'VE GOT THE OLD PORT INDUSTRIAL, UH, 33RD TO 41ST STREET PROJECT KICKING OFF.
AND THEN WE'VE GOT THE, THE TRAFFIC SIGNALS AND, UH, WAY FINDING PROJECTS, UH, THAT WE'RE ADDED TO THE LIST.
THE ONE THING I'LL JUST POINT OUT HERE, I, I PUT IN THE DATA WE HAVE FROM THE ENGINEERS ON THE TWO TRAFFIC SIGNAL PROJECTS.
THEY'RE, YOU KNOW, SO THAT'S WHAT, THERE'S, THERE'S DIFFERENCES IN, IN THE DATA WE'VE RECEIVED.
HOWEVER, I THINK THOSE BOTH WILL NORMALIZE AS WE GET CLOSER TO CONSTRUCTION AS FAR AS WHAT THE ACTUAL PER PERFORMANCE OF PERIOD WOULD BE FOR THOSE TWO.
UM, UH, ONE, YOU KNOW, THE ENGINEERS DETERMINE HOW MUCH TIME THE, THE CONTRACTOR HAS TO DO THE PROJECT ON CIVIL PROJECTS.
AND SO RIGHT NOW THAT'S WHAT THEY'RE ACTUALLY SHOWING FOR US.
SO, BUT LIKE I SAID, AS WE GET CLOSER TO 'EM, I THINK THEY'LL NORMALIZE.
UM, AND ON THE TRAFFIC SIGNAL PROJECTS, ONE OF THE THINGS WE WERE WORKING TO DO IS TRY AND, UM, MOVE, UH, TO THE LEFT THE, THE, THE 33RD STREET TRAFFIC SIGNAL PROJECT.
I THINK RIGHT NOW WE WERE LOOKING, YOU KNOW, WE, LAST MEETING, WE WERE LOOKING AT A SEPTEMBER, 2027, LET, UH, FOR THAT.
BUT NOW WE'RE LOOKING AT A APRIL, 2027, LET, BUT STILL NOT QUITE WHERE WE WANT TO BE WITH THAT PROJECT.
UH, 16TH STREET PROJECT, UH, TECH STOP HAS THE FINAL, UH, REVIEW, UH, AND, UH, RIGHT NOW.
AND, AND SO AS SOON AS WE HEAR BACK FROM THEM ON THAT, WE WILL BE READY FOR OUR AUGUST, 2026, LET CRUISE TERMINAL 25 WALKWAY IMPROVEMENTS.
UM, UH, AS WE HAD SOME DISCUSSION LAST TIME, UH, LAST MEETING ABOUT THIS PROJECT, UH, YOU KNOW, RIGHT NOW WE WERE SITTING IN BETWEEN EIGHT AND $9 MILLION FOR THE KIND OF A, A REDUCED SCOPE OF WORK.
HOWEVER, WE'RE WORKING TO TRY AND REDUCE IT CLOSER TO $6 MILLION RIGHT NOW.
WHAT THAT WOULD REALLY LOOK LIKE, AND MY THOUGHTS JUST TO NOT GO INTO IT TOO MUCH, IS WE REMAIN LEAVE, LEAVE AN INTERIOR SECTION ENCLOSED OVER HARBORSIDE DRIVE WHAT'S ACTUALLY OUT THERE.
AND WE WOULD, UH, JUST HAVE ONE A RAMP ON EITHER SIDE OF THAT, THAT ONE SINGLE EXISTING SECTION.
IN ORDER TO DO THAT, WE'VE GOTTA TAKE A LOOK AT THE, UH, INSPECTION OF, OF THAT, THAT SINGLE SECTION, AND ALSO, UM, DO KIND OF SOME COSTING EXERCISE ON WHAT IT TAKES TO REPOWER THE FACILITY.
'CAUSE WE'LL HAVE TO REFEED POWER TO THE FACILITY TO KEEP THAT ONE SECTION, UH, AIR CONDITIONER ONE DAY, UH, WARROAD 23RD TO 20TH STREET.
UH, THIS PROJECT IS LOOKING AT A JULY COMPLETION, PROBABLY AFTER 4TH OF JULY, UM, HERE.
UH, BUT YOU CAN SEE DEFINITELY PROGRESS STILL BEING MADE.
UH, THIS, THIS, UH, INTERSECTION.
HERE'S THE 21ST STREET INTERSECTION.
AND SO THEY'RE KIND OF, UH, WORKING ON SOME OF THE UTILITIES THERE.
THERE'S SOME TIE-INS, UH, AND, AND THEN THEY'RE GONNA BE PROGRESSING EAST TOWARDS THE TERMINATION OF THE PROJECT NEAR 20TH STREET.
YOU CAN ALSO SEE THAT THERE, THERE IS A CHANGE IN THAT, THAT PARKING LOT THERE.
YOU CAN SEE THE, THE, ALL THE CONSTRUCTION CONES KIND OF IN THE NORTHERN PART OF THAT EXISTING PARKING LOT, BECAUSE WE ARE EASING THE BEND IN THE ROAD AT THAT LOCATION.
AND SO IT'LL BE, UH, UH, WE, WE INCREASE THE DESIGN SPEED, ALTHOUGH WE'RE NOT GONNA HAVE AN INCREASED SPEED THERE, BUT WE INCREASE THE DESIGN SPEED TO, TO KIND OF EASE THE BEND.
SO, SO IT LOOKS A LITTLE, UH, UH, KIND OF, UH, I DON'T KNOW.
IT, IT LOOKS A LITTLE BIT BETTER THAN THE LOWER DESIGN SPEEDS LOOK LIKE.
UH, JUST, JUST, UM, SO, SO WE HAVE MORE FLEXIBILITY WITH THIS ROAD WAY IN THE FUTURE.
YEAH, IT LOOKS GOOD HERE, 38, 39, UH, SLIP FELL PROJECT.
AND YOU CAN SEE REALLY THEY'VE, THEY'VE COMPLETED THE, THE SHAPING OF, OF THAT, UH, SURCHARGE OR THE, THE OVERBURDEN THAT WE HAVE ON THAT, THAT FACILITY, THE WET AREAS AROUND YOU.
THAT'S KIND OF THE LOW AREAS THAT WE HAD SOME WET WEATHER, UH, BEFORE THIS PICTURE WAS TAKEN.
AND SO WE WILL HAVE SOME ONGOING ACTIVITY TO KIND OF MAINTAIN THIS DITCH AROUND THE, THE, UH, UH, SURCHARGE WHILE THE AREA IS SETTLING OUT.
UM, THE OTHER THING WE ARE, WE'RE WORKING TOWARDS IS TAKING A, A, A GEOTECHNICAL BORING AS PART OF THE ENGINEERING ON THE NORTHERN SECTION.
WE'RE GONNA TAKE A BORING THERE, SEE WHAT THE CONSOLIDATION LOOKS LIKE RIGHT NOW AFTER THE SET PERIOD OF TIME.
AND WE'RE TRYING TO DETERMINE WHEN WE WILL INSTALL THAT CONCRETE APRON ACROSS THE BACK OF THAT NEWLY FILLED AREA.
SO, UH, WE'RE, WE ALSO HAVE ALL THE SETTLEMENT
[01:25:01]
PLATES INSTALLED ACROSS THE ENTIRE SLIP.SO, UH, WE'RE REALLY KIND OF IN THAT MONITORING PHASE.
AND WE DO HAVE ABOUT A, A YEAR'S WORTH OF MONITORING IN THE EXISTING ENGINEERING CONTRACT.
UM, SO WE WILL GET THOSE SURVEYS IN AND LOOK AT THE CURVATURE AS THE CONSOLIDATION OCCURS.
UH, AND THEN PIER 39 41 PROJECT, UH, WE HAVE OUR FINAL, UH, WALKTHROUGH FOR THIS WEEK AFTER ALL THE PUNCH LIST WAS COMPLETED.
SO, SO THIS IS PROJECT IS, UM, REALLY NEARING COMPLETION.
REALLY THE ONLY THING WE'VE GOTTA DO BEFORE OPERATION STARTS HERE IS, UH, PUT OUT A COUPLE EXTRA, UH, CONCRETE TRAFFIC BARRIERS AND SOME OF THE, ALONG SOME OF THE OPEN AREAS ON THE SLIPS AND, UM, GETTING REALLY CLOSE TO BEING ABLE TO OPEN THIS FACILITY.
WHAT'S, WHAT'S THE DARK AREA?
SO THE DARK AREA, THAT'S A ASPHALT AREA.
SO, UM, UH, WE, DUE TO THE DIFFERENCE IN, UH, GRADE CHANGES, AND THIS IS SOMETHING THAT WE DEVELOPED AFTER WE, UH, HAD, HAD STARTED ON THE ENGINEERING FOR REPAVING, THE REST OF PIER 39 40, THAT'S BASICALLY LIKE A SACRIFICIAL, WE DON'T WANT TO PUT CONCRETE IN THAT AREA AND THEN HAVE TO CONCRETE, SO IT'S A SACRIFICIAL PAVEMENT TO KIND OF TRANSITION BETWEEN THE EXISTING GRADE SOUTH OF THAT BLACK AREA AND THE NEW GRADE NORTH OF THAT AREA.
AND SO AS WE MOVE TOWARDS REPAVING THIS ENTIRE FACILITY, WE'LL HAVE A COMPLETELY NEW GRADE LINE AND WE WON'T HAVE TO, UM, TEAR UP NEW CONCRETE.
WE JUST PUT DOWN, WE HAVE A COUPLE OF CONCRETE DRIVEWAYS BECAUSE OF THE HEAVIER CARGO REQUIRES THAT, BUT, UM, THAT, THAT'S THE REASON FOR THE ASPHALT IN THE, OH, SHEILA.
UM, COULD WE GO BACK ONE SLIDE THAT, UH, WET AREA, THE DITCH AROUND THE, UM, STRUCTURE? YES.
EXPLAIN TO ME AGAIN WHAT THE PLAN IS FOR THAT.
SO RIGHT NOW, THOSE DITCHES AROUND THE, THE EDGES THAT'S JUST THE LOW AREA IS GONNA COLLECT THE WATER THAT RUNS OFF THE OVERBURDEN AS WELL AS THE SURROUNDING AREAS.
THOSE RUN GENERALLY NORTHWARD, AND YOU CAN KIND OF SEE AT THE NORTH END OF THE PICTURE, THERE'S, UH, IT WIDENS OUT INTO A FLARE.
THOSE ARE KIND OF TWO LITTLE PITS.
AND WHAT WE'RE GONNA HAVE TO DO TO MANAGE THE WATER IN THIS AREA IS BASICALLY JUST PUMP THE WATER OUT OF THAT AREA, BECAUSE UNTIL WE GET THE FINAL DRAINAGE SYSTEM IN WHICH WE DON'T WANT TO INSTALL UNTIL AFTER CONSOLIDATION OCCURS, WE KIND OF HAVE TO HAVE A LITTLE BIT OF ACTIVE MANAGEMENT OF THE DRAINAGE AREA.
THE GOOD THING IS, IS RIGHT NOW, WITHOUT ANY PUMPS INSTALLED, IT DOESN'T REALLY CREATE BAD CONDITIONS OUT THERE BECAUSE OF ALL THE SAND.
IT'S VERY POROUS AND THE WATER JUST RUNS IN THERE.
AND OVER TIME, UM, IT ACTUALLY, YEAH, THERE'S A, THERE'S A NATURAL PROCESS OF KIND OF, UH, UH, INFILTRATION THAT'S OCCURRING.
BUT, BUT THAT'S THE, THE OVERALL PLAN UNTIL WE GET CONSOLIDATION ON THAT NORTH PART.
UM, AND, AND THE CONCRETE APRON, APRON IN AT THAT POINT, THERE WILL BE A SINGLE DRAIN LINE THAT IS INSTALLED UNDERNEATH THAT CONCRETE APRON.
WE'LL BE ABLE TO, UM, DRAIN THE AREA INTO THAT, THAT ONE INLET.
BUT ONCE WE GET CONSOLIDATION OVER THE ENTIRE SLIP, WE'RE GONNA EXTEND THAT DRAIN LINE THROUGHOUT THE WHOLE AREA AND INSTALL, UH, STORM A PROPER STORM SEWER SYSTEM THAT WOULD THEN COLLECT THE RUNOFF.
I WAS TALKING WITH SOME FOLKS FROM
BASICALLY WHAT HAD HAPPENED IS, SO WE HAD TO, UH, THEY WERE GONNA DO THAT FINAL WALKTHROUGH, UM, THIS LAST WEEK, OR EVEN, IT WAS, IT WAS EARLIER THIS LAST WEEK, BUT AS YOU KNOW, THAT IT WAS JUST BAD WEATHER AND THEY'VE GOTTA COMMUTE IN FROM, UM, AUSTIN AND BEAUMONT.
UM, AND SO WE, WE, WE PUSHED IT TO THIS WEEK.
WHEN DO YOU ANTICIPATE JEFF WOULD BE ABLE TO START USING THAT AREA? YOU KNOW, I, I HAVE BEEN IN THE STAGE OF LIKE, IT'S GONNA BE WITHIN THE NEXT ONE TO TWO YEARS.
I MEAN, WE'LL, WE'LL KNOW MORE ONCE WE CAN GET A FEW MORE POINTS ON THE SETTLEMENT CURVE, BUT I HAVE, I HAVE JUST A FEELING IT'S GONNA BE A LITTLE BIT SOONER THAN I AM ANTICIPATING BECAUSE OF THE QUALITY OF THE MATERIAL WE HAD AND THE WAY IT WAS PLACED HYDRAULICALLY, IT REALLY KIND OF MASSAGES THOSE GRAIN PARTICLES INTO EACH OTHER MORE SO THAN IF YOU WERE JUST TO DUMP SAND INTO THE SLIP.
SO, UM, I, I WOULD SAY RIGHT NOW, SAFELY SAYING PROBABLY WITHIN THE NEXT ONE TO TWO YEARS, WE'LL PROBABLY BE ABLE TO JUST PUT SOME SORT OF BASE MATERIAL ON THERE AND PARK CARGO, BUT WE'LL, WE'LL WATCH THE SETTLEMENT CURVES AND BEFORE BACK TO THERE ARE CERTAIN CARGOES WE THINK IT'LL HOLD.
THEY'RE ABLE TO, LITERALLY, THE MATERIAL THEY USED TO GRADE THAT IS OUR CARGO, ESSENTIALLY.
SO, I MEAN, IT CAN HOLD THE MATERIAL.
IT'S MORE OF A MAINTENANCE OVER TIME.
YOU PUT MORE CARGO ON IT, YOU'RE GONNA HAVE TO MAINTAIN IT.
AND SO WE'LL, WE'LL, WE'LL, UH, UH, I THINK WE'RE PRETTY CLOSE HONESTLY, BUT BEING ABLE TO USE IT, BUT WE'LL HAVE, WE WILL NEED A LITTLE BIT EXTRA SCOPE TO GO IN THERE, PUT BASE
[01:30:01]
MATERIAL AND POTENTIALLY, YOU KNOW, A FLEXIBLE ASPHALT MATERIAL, WHICH IS NOT INCLUDED IN ANY SCOPES WE HAVE RIGHT NOW.UH, THE, UH, OTHER TEXT PROJECT, THE SEAPORT CONNECTIVITY, AADA A PROJECT 33RD, 41ST STREET.
UM, WE'RE JUST KIND OF GETTING ALL THE PAPERWORK IN, IN LINE FOR THIS PROJECT TO, TO KICK OFF.
AND, UH, I, I DON'T THINK WE HAVE THE, THE PROJECT KICKOFF MEETING.
UH, BUT WE'RE GONNA BE HOLDING IT HERE SHORTLY AND GETTING ALL THE THINGS IN ORDER.
UH, DEFINITELY STARTING, UH, IN THE NEXT MONTH OR SO ON THIS PROJECT, UH, FOOTING.
I THINK RIGHT NOW THE, THE PLAN IS, IS TO PUT OUT TRAFFIC CONTROL AT THE END OF JUNE, UH, FOR THIS, BUT WE'RE STILL KIND OF COORDINATING THAT WITH THE ONGOING CONSTRUCTION ON HARBORSIDE, SO WE DON'T JUST, UM, UH, CREATE, UH, A GRIDLOCK WITH, WITH, WITH THE TWO DIFFERENT PROJECTS TOGETHER.
YEAH, YOU'LL HAVE BOTH OF THEM GO THE SAME TIME.
WE'LL BE ABLE TO GET ANY TRUCKS IN THERE, UH, AND TERMINAL 16, NOTHING NEW THE REPORT, BUT JUST WORK COMPLETE THOSE FINAL SCOPE OF WORK ITEMS BY JULY 1ST, DID, UH, DID WE RESOLVE THE PVV DAMAGE ISSUE? UH, WE'RE, WE'RE GETTING MUCH CLOSER TO RESOLVING THAT.
UH, WE, WE DID RECEIVE A, UH, A PROPOSAL FROM A DELTA, AND WE HAD ALREADY WORKED ON RESOLVED OR REPAIRING THE HYDRAULIC CYLINDER.
UM, SO WE HAVE A PROPOSAL IN HAND, AND WE'RE JUST WORKING ON THE RIGHT OF WAY TO EXECUTE THAT PROPOSAL.
UM, AND SO THERE MAY BE BOARD ACTION DEPENDING ON HOW, HOW WE RESOLVE THAT.
UM, UH, IN ORDER TO, TO KIND OF MOVE FORWARD WITH THE, THE REPAIR OF THE RAMP THAT WAS DAMAGED, IT WAS, THE PROPOSAL WE GOT BACK WAS JUST ABOUT $60,000 TO GET IT FABRICATED, AND IT WAS GONNA GET FABRICATED IN TEXAS RATHER THAN BEING FABRICATED AND SPENDING AND IMPORT PHYSICAL FEES.
DOES IT, UM, IN, DOES IT INCREASE THE TURNAROUND WITH JUST ONE BRIDGE WORKING? SO THE ONLY GOOD NEWS WE HAVE ON THAT IS THAT THE SEASCAPE COULD ONLY USE ONE RAMP.
UH, PRIMA WAS ABLE TO USE BOTH RAMPS BECAUSE OF THE SIZE OF THE WIDTH OF THE GATE.
SO RIGHT NOW, UM, THE, THERE ISN'T REALLY AN OPERATIONAL, UH, DEFICIT THERE BECAUSE THEY'RE STILL ABLE TO USE ONE RAMP ON THAT RIDGE.
AND, UH, WE'RE ALSO COORDINATING WITH THE DELTA, UH, KIND OF RETURNING TO, TO CLOSE OUT THE LAST ACTION ITEMS. AS I MENTIONED, THEY'RE, THEY'RE GONNA COME BACK AND REPLACE THE TWO GENERATORS ON THE UNITS BECAUSE THEY'RE NOT PERFORMING.
HOW THEY, UM, HAD KIND OF THE, THE THEORY SHOWED THAT THEY SHOULD PERFORM, SO THEY'RE GONNA INCREASE THE SIZE OF THOSE TWO GENERATORS.
IT HAS TO DO WITH ELECTRONIC HARMONICS.
AND, BUT, BUT THEY'RE, UH, PLANNING A TRIP AT THE END OF THE SUMMER TO CLOSE OUT, UH, THOSE ITEMS AND, AND, UH, REPLACE THOSE GENERATORS AND, AND CRUISE TERMINAL 16 TURNED, TURNED INTO, YOU KNOW, A, A NICE PLACE FOR US TO HAVE MEETINGS AND STUFF LIKE WE HAD THE MARITIME DAY.
IT REALLY, IT WORKED OUT REALLY NICE AND, AND, UH, IT'S, IT LOOKS GOOD TOO.
SO, I MEAN, I THINK THAT WE'LL SEE US DOING MORE AND MORE OF THAT, AND WE'RE HAVING PEOPLE INQUIRE ABOUT THAT ALSO FROM THE PUBLIC ABOUT USING THAT.
I DID THINK THE ACOUSTICS THE WAY TURNED THE ROOM WORKED A LOT BETTER FOR, AND I WASN'T IN THE AUDIENCE, BUT IT SEEMED MAYBE IT WORKED BETTER, UM, THAN THE LAST TIME AT THE OPEN HOUSE MEETING.
NOW IT'S FRONT TO BACK, YOU KNOW, IT SEEMED TO WORK BETTER.
AND THEN WE, AND AS WE TALKED, YOU KNOW, MAYBE THERE WAS SOME SOUND BAFFLING OR SOMETHING WE MIGHT DO IN THERE, BUT ACOUSTIC CART WORKED OUT PRETTY GOOD.
THIS LOOKS FANTASTIC, BUT
AI THING, YOU GOTTA BE CAREFUL THERE.
THAT'S, THAT'S, UH, THAT'S, THAT'S, THAT'S WHAT WE HOPE FOR IT TO LOOK LIKE, RIGHT? YEAH.
THAT'S, THAT'S, THAT'S ACTUAL INTELLIGENCE THAT CREATED THAT.
NOT ARTIFICIAL INTELLIGENCE, ACTUAL INTELLIGENCE AI.
UM, BUT, BUT WE, UH, YEAH, WE'RE WORKING ON THE DESIGN WITH, UH, UH, UH, SSH, UH, STANLEY SPERLING AND HAMILTON TO, TO DO THE DESIGN ON THIS.
AND THEN WE'LL HAVE ANOTHER KIND OF GRANT PROJECT TEED UP TO GET SOME ADDITIONAL FUNDING OR, OR TACKLE SOME OF THOSE PIECES, UH, UM, PIECE BY PIECE AS WE MOVE FORWARD.
UH, THE ENGINEERING STUDIES PROJECT, UH, REALLY, I MEAN, NOTHING NEW TO REPORT HERE OTHER THAN THE, THE HGAC.
WE ARE WORKING ON GETTING Y'ALL A FINAL SCOPE ON THOSE STUDIES, AND I THINK, WE'LL, WE'LL, WE'RE WITHIN A MONTH OR TWO OF GETTING THAT, UH, PREPARED.
UH, THE WAY FINDING PROJECT, I THINK, UH, WE'RE WORKING TO GET Y'ALL SOMETHING BY THE JUNE MEETING, AND THIS IS STILL KIND OF A TIGHT TIMEFRAME ON THAT.
SO WE'RE, WE'RE KIND OF WORKING ON IT.
I THINK ONE OF THE THINGS WE'VE BEEN DISCUSSING IS WE HAVE THAT CONSTRUCTION SLIDE UP FRONT, AND WE'RE WORKING TO MAYBE PUT SOME OF THESE ON A TIMELINE AS WELL, THAT THE
[01:35:01]
CONSTRUCTION, WE USE THAT SCHEDULE FOR KIND OF COORDINATING PHYSICAL IMPROVEMENTS AND OPERATIONS.AND SO WE'RE THINKING OF CREATING A SEPARATE ONE FOR ENGINEERING PROJECTS AS WELL.
AND WE'LL HAVE THAT TO SUPPLEMENT THIS MAYBE NEXT TIME ON, ON THESE ENGINEERING, THE NON-PHYSICAL PROJECTS.
SO WE COORDINATE THOSE TIMELINES.
JUST LET YOU KNOW HOW MUCH WORK WE'VE GOT GOING ON RIGHT THERE.
JUST WHEN YOU LOOK AT THAT, EVERY LINE'S A SEPARATE PROJECT AND ALL THIS STUFF.
WE, AND WE HAVE A ITEM LATER ON, I'LL BRIEF YOU.
MOBILITY STEPS, UH, CONSTRUCTION AND MAINTENANCE.
UH, YOU KNOW, THE, THE TEAM IS USING THE NEW SYSTEM.
UM, DEFINITELY SEEING A INCREASE IN THE NUMBER OF TICKETS WITH, WITH THE NEW SYSTEM, STILL WORKING ON REPORTING.
AND SO WE DON'T HAVE A, LIKE THE, THE CATEGORY ANALYSIS, UH, READY FOR Y'ALL.
BUT, BUT, UM, IT IS, YOU KNOW, WE'RE, WE'RE GONNA BE ABLE TO GET MORE DATA OUT OF, OUT OF THIS SYSTEM ONCE IT'S FULLY UP AND RUNNING.
BUT, BUT IT IS UP AND RUNNING AND THE TEAMS ARE USING IT, BUT STILL WORKING THROUGH BUGS.
LIKE ANY, UM, SYSTEM YOU STAND UP OVER TIME.
BUT, UM, YEAH, I THINK IT'S LOOKING OPTIMISTIC AT THIS POINT.
AND THAT SEEMS LIKE A LOT OF TICKETS OPEN.
YEAH, THIS IS, I MEAN, THIS JUST GOES TO LIKE EACH ONE OF THOSE LINES.
HORIZONTAL ROWS WOULD REPRESENT A PERSON AND THEN IF, YOU KNOW, THE VERTICAL LINES REPRESENT, UH, DAYS, UH, AND THE TIME DURING THE DAY WHEN THEY HAVE A TICKET ASSIGNED.
AND SO, YOU KNOW, THAT'S WHAT YOU'RE REALLY LOOKING AT HERE IS, IS KIND OF THE SCHEDULE BOARD THAT WE HAVE AS, UH, PART OF THIS SOFTWARE.
UH, WE DO HAVE, WE CAN SHOW OPEN AND CLOSE TICKETS IN A REPORT, BUT WE CAN'T BREAK IT DOWN A CATEGORY ANALYSIS YET.
SO THIS WILL, THIS SLIDE WILL MORPH AS WE GET FURTHER INTO THAT.
UM, NEW SOFTWARE, UH, AND THEN A LOOK AT SOME OF THE WORK THAT CONSTRUCTION, UH, THAT C AND M HAS BEEN DOING.
THEY, UH, STOOD UP THE, THE CREW STORE THERE IN THE CREW AREA DOWN AT CT 16 AND WORKING ON REPAIRING SOME OF THE, UM, PARKING LOT SIGNS.
UM, AND THOSE, THOSE ARE SOME OF THE SIGNS THAT WE'RE KIND OF LOOKING AT REPLACING WITH THE WAVE PIPE.
SO WE CAN HAVE DIGITAL SIGNS AND REPLACE SOME OF THOSE SIGNS ON HARBORSIDE DRIVE AND CONSTRUCTION AND MAINTENANCE AGAIN FOR THE, WE HAD A WATER LEAK AT, UH, PIER 37.
AND SO THEY WENT IN AND REPAIRED THE WATER LEAK AND THOSE TWO TOP PICTURES OF THEM REPLACING THE CONCRETE, UH, OR RIPPING OUT THE CONCRETE BEFORE THE WATER LEAK REPAIR AND REPLACING IT AFTER.
UM, AND THEN DOING SOME, JUST KIND OF MAKING SURE PEOPLE AREN'T LOITERING HERE, SOME OF THE EGRESS STORES, IF 25, ALRIGHT, I'M CLOSING OUT DIRECTION FORWARD TO HERE'S THE, UH, INCIDENTS, UH, JUST COURT.
IT'S KIND OF SELF-EXPLANATORY ON DIFFERENT AREAS AND STUFF.
YOU'RE SEEING A LOT OF, A LOT OF HAS TO DO.
YOU KNOW, YOU JUST KIND OF, WHAT THIS INDICATES IS, IS, YOU KNOW, WE'RE KIND OF WINDING DOWN ON OUR PROJECTS, UM, WHERE WE'RE REQUIRING, UH, PERMITS FROM OFF, YOU KNOW, NON-EMPLOYEES SCALING DOWN A LITTLE BIT.
I THINK HE IS ON A BEACH SOMEWHERE IN THE CARIBBEAN.
WELL, YOU KNOW, AND WE DID MARCH 6TH, WE HAD, UH, CONDUCTING OUR ANNUAL SECURITY EXERCISE.
I THINK EVERYBODY LIKES TO COME TO GALVESTON BECAUSE WE GET TWO DOZEN STATE, LOCAL AND FEDERAL AGENCIES TO COME IN AND TALK ABOUT POLICIES.
MORE THAN 80 PEOPLE SHOWED UP AT THE EXERCISE.
AND THIS WAS, UH, YOU KNOW, THIS WAS FUNDED THROUGH, UM, THE 24, UH, PORT SECURITY GRANT.
VINCE, UH, HAD A GREAT MEETING WITH, UH, CHAIRMAN FLE FLEISCHMAN.
UH, HE CAME DOWN TO GALVESTON.
UM, AND THEN, UH, WE HAD A, UH, COUPLE OF, THERE'S A TABLETOP EXERCISE AND GULF COURSE ASSOCIATION.
WE HAD OUR, OUR SPRING MEETING, UH, JUST, UH, THE OTHER TWO WEEKS AGO.
UM, I, I DID GIVE AN PORT UPDATE AT THE CHAMBER, PELICAN ISLAND, AS WELL AS THE, UH, PROPELLER CLUB.
WE DID STAY IN THE PORT THERE.
UM, YOU KNOW, THE PAC MEETING, UH, WAS AT THE PORT ARANSAS.
UH, THIS TIME WE WE'RE STARTING TO SCHEDULE MORE OF THOSE MEETINGS MORE FREQUENTLY AS WE GET CLOSER TO, UH, THE LEGISLATURE.
UM, AND, UH, SO P 19, WE'VE, WE HAD MEETINGS WITH THAT, THE REAL ESTATE COMMITTEE TALKING ABOUT, UH, SOME POTENTIAL AREAS DOWN THERE THAT WE'VE ALL BEEN KIND OF FOLLOWING.
UM, MARITIME DAY WAS A HUGE SUCCESS.
UM, I'M REALLY EXCITED THAT IT, IT LOOKS LIKE WE MAY HAVE ABOUT SOMEWHERE BETWEEN 25 AND 30,000 MORE TO GO TO THE, UM, SCHOLARSHIP FUNDS.
[01:40:02]
DECIDING.UM, AND THEN THIS, I THINK, UH, TOMORROW I THINK, OR THE DAY AFTER TOMORROW'S, THE SPANISH TALL SHIP WILL BE HERE AND THEY'RE HAVING, UH, UH, SOME, UH, TOURS OF THAT.
AND THEN THIS FRIDAY WE HAVE OUR ANNUAL EMPLOYEE APPRECIATION DAY, UM, WHERE WE WILL, WE GATHER, UM, THIS AT THE BOAT CLUB, WE'LL GATHER THERE AND EVERYONE HAS OBVIOUSLY ALL THE BOARDS INVITED YOU TO ATTEND, UM, ON FRIDAY.
COULD YOU GIMME A LITTLE OVERVIEW OF WHAT THE, WHAT THE CHAMBER PELICAN ISLAND ADVOCACY MEETING? WHAT, WHAT, WHAT EXACTLY ARE THEY AT? WHAT'S THE ADVOCACY? WELL, YOU KNOW, IT IS, IT IS A MEETING THAT, UM, IT'S HELD AT THE PILOT'S OFFICES AND IT'S JUST A DISCUSSION OF MOSTLY, UH, TENANTS, UH, PEOPLE THAT USE THE WATERWAY.
UM, AND WE TALK ABOUT CURRENT EVENTS.
UM, IT'S A, IT'S ONCE A MONTH AND WE HAVE A LUNCH AND THEN, UH, SOMEBODY SPONSORS IT AND IT'S, UH, IT'S ON, UH, ON A, USUALLY ON MONDAY.
AND UH, THIS LAST ONE WE SPONSORED IT, COSPONSORED IT, SO WE BOUGHT LUNCH FOR EVERYBODY.
AND THEN THERE WAS ABOUT WHAT 15 OR 20 PEOPLE SHOW UP FOR IT.
AND THERE'S USUALLY TWO OR THREE CITY COUNCIL MEMBERS.
YEAH, NO, I, I, I, SO I GUESS I, SO IT'S NOT, IT'S, IT DOESN'T CONVENE SPECIFICALLY RELATED TO PELICAN ISLAND? NO, IT'S, IT IS MORE MARITIME.
I THINK GENERAL MARITIME WE TALK ABOUT MORE THAN THINGS JUST, I MEAN OBVIOUSLY I HAD, I TALKED ABOUT THE PORT AND I GAVE EVERYBODY AN UPDATE ON THE PORT, WHAT WAS GOING ON, WHAT WE KNEW HERE.
THEY TALKED A LOT ABOUT THE BRIDGE.
I THINK A LOT OF CONVERSATIONS ABOUT THE BRIDGE BEFORE IT WAS THE CHAMBER, UH, SUBCOMMITTEE.
IT WAS STARTED BY A GROUP OF, UH, PELICAN ISLAND, UH, PRIVATE ENTITIES THAT WERE JUST TRYING TO BUILD UP A COALITION AROUND THIS BRIDGE REPLACEMENT THAT WAS, I DUNNO, 15 YEARS AGO.
YEAH, THAT'S KIND OF WAY IT STARTED WHEN I FIRST GOT HERE.
THE CHAMBER WASN'T INVOLVED IN IT.
WELL, YOU ALSO SPOKE AT THE FRIENDS OF SCOUTING BREAKFAST BEFORE THE MAY FIVE BOARD MEETING.
LAST BOARD MEETING WAS LATE GETTING HERE.
SO EVERYBODY'S IN, EVERYBODY'S INTERESTED IN THE PORT AND WE'RE, WE'RE OBLIGING AND GETTING IN FRONT OF EVERYBODY AND LETTING 'EM KNOW WHAT, WHAT WE KNOW.
UM, THERE'S A, A WILD LOOKING GROUP OF PEOPLE UP THERE PLAYING GOLF.
THAT WAS OUR CHAMBER GOLF TOURNAMENT.
SO WE, THERE WAS A TEAM, UM, WE DID NOT WIN, BUT WE HAD FUN.
YEAH, ROGER MASON AND SO, AND THERE AND CP, YOU KNOW, CPR CLASSES.
WE NOW ARE, UH, WORKING THROUGH THE PORT PERSONNEL, UM, TRAINING PEOPLE ON CPR AND THEN THE TOURISM
EVERYBODY WAS HAPPY WITH WHAT YOU, WHAT YOU DID.
SO WE HAD A PANEL UP THERE WHERE HE WAS ON WITH THE PARKS BOARD AND UM, WHO ELSE WAS ON THERE? UT, UT, TV, ROGER THE PORT ALSO GOT SOME GOOD PR WHEN THEY UNLOADED THE DOUBLE DECKER BUS.
AND WE DID, WE RECEIVED A NICE, NICE, I DON'T KNOW IF IT'S OUT IN THE, IS THAT IN THE, UH, TROPHY CASE YET? YES, IT'S, WE RECEIVED A NICE AWARD FROM, FROM THE TOURISM SUMMIT, UM, AND JEFF, JEFF COLLECTED THAT FOR US.
UM, AND IT WAS FOR THE FRIEND FRIENDS OF TOURISM TOURISM.
GOOD RECOGNITION FOR THE, FOR THE PORT.
UM, HERE'S THE PICTURES FROM THE MARITIME DAY THAT, UM, IT WAS REALLY, IT WAS REALLY COOL.
I THINK THE WAY WE HAD THAT, THE PICTURE IN THE BACKGROUND BEHIND.
WAS THAT A DATE THOUGH? IT HAD A GRAIN SILO ON IT.
YEAH, IT DOES HAVE THE GRAIN SILO.
THERE'S NO DOUBT IT WAS DATED.
AND THEN YOU CAN SEE THIS IS WHERE WE HAD THE SIGNING, UM, FOR THE, UH, SCHOLARSHIP AT, UH, TON COLLEGE.
I'D LIKE TO COMPLIMENT OUR DRONE DRIVER.
I MEAN, THAT REALLY HAS IMPROVED OUR, OUR VISIBILITY.
WELL, WHAT WE CAN SEE, YEAH, JOHN, JOHN DOES A GOOD JOB.
WHAT WAS THAT? HAD A BABY LAST WEEK.
[01:45:01]
PICTURES OF.ANY OTHER QUESTIONS FOR ROGER? VERY GOOD.
[D. RECESS INTO EXECUTIVE SESSION]
SO WITH THAT, I'M GOING TO ANNOUNCE THAT WE ARE MOVING INTO THE RECESS OF THE EXECUTIVE SECTION AT 1120.SECTION 5 5 1 0 7, 1 0 7 2 REAL ESTATE OH SEVEN FOUR PERSONNEL OH SEVEN SIX SECURITY MATTERS.
AND OH EIGHT SEVEN, ECONOMIC DEVELOPMENT NEGOTIATION.
TAKE A SHORT BREAK AND GOING TO GO AHEAD AND DECLARE US BACK IN SESSION
[E. RECONVENE REGULAR MONTHLY MEETING]
1:22 PM SO, UH, ITEM E IS, LET'S SEE THE RECONVENE MEETING AND THEN DISCUSSING THAT AND CONSIDER ACTION, IF ANY ON SPECIFIC MATTERS DISCUSSED IN EXECUTIVE SESSION, WHICH WERE LISTED ON THE AGENDA IN SUFFICIENT DETAIL TO PROVIDE NOTICE TO THE PUBLIC IS REQUIRED BY THE TEXAS OPEN MEETINGS ACT.AND I DON'T BELIEVE WE HAD ANYTHING ELSE.
[F.1 CFO Report/Consent Agenda]
BUSINESS ITEMS. SO F1, THE CFO REPORT, CONSENT AGENDA.MR. I WOULD, UH, BOARD, I WOULD MOVE APPROVAL OF THE CFO CONSENT AGENDA.
OKAY, SO I HAVE A MOTION AND SHEILA SECOND.
ANY DISCUSSION COMMENT? ALL IN FAVOR, RAISE YOUR OPINION.
[F.2 Mobility Update]
TWO MOBILITY UPDATE.DEMONSTRATING, DEMONSTRATING MOBILITY.
UM, YEAH, SO I MEAN THE, THE FEW THINGS WE HAVE AS AN UPDATE, UH, OF COURSE Y'ALL APPROVED THE, UH, FIRST PHASE OF THAT, UH, UH, AND WE'VE BEEN WORKING WITH TONY TO GET THE, THE, UH, THE PROFESSIONAL SERVICES AGREEMENT EXECUTED.
THEY HAVE A COUPLE OF COMMENTS, I THINK WITH REGARD TO INDEMNITY WE'RE GONNA DISCUSS, BUT WE, WE ALWAYS HAVE TO WORK THROUGH THOSE, UH, THAT LANGUAGE.
UM, WE, WE ARE COORDINATING THE, ON THE, THE FIRST PHASE WE ARE COORDINATING WHEN THE APPROPRIATE TIME TO DO THE TRAFFIC COUNTS IS BASED ON THE HARBORSIDE DRIVE TRAFFIC.
RIGHT NOW, WE'VE GOT A CALL INTO THIS AFTERNOON TO FURTHER COORDINATE THAT, BUT RIGHT NOW I'M THINKING IT'S PROBABLY NOT GONNA BE TILL MID OR LATE JULY.
'CAUSE THAT'S WHENEVER MOST OF THE WORK IN THIS AREA WILL BE DONE.
BUT WE WILL BE MONITORING THAT AND ADJUSTING.
WE ALSO DID RECEIVE LATE LAST WEEK, UH, THE PROPOSAL FROM, UH, UH, UH, WILPERT ON THE SECOND PHASE.
SO RIGHT NOW THAT THAT CAME IN JUST OVER ABOUT A HALF A MILLION DOLLARS.
HOWEVER, A LOT OF IT, 200,000 THAT'S PROPOSED IS PUBLIC ENGAGEMENT.
AND SO I THINK WITH THAT IN MIND, THAT MEANS REALLY JUST OVER ABOUT 300,000 IS, IS THE, THE ACTUAL STUDY PORTION OF THE WORK.
200,000 IS THE PUBLIC ENGAGEMENT.
SO WE REALLY HAVE TO FIGURE OUT HOW MUCH ENGAGEMENT WE WANT TO DO AND METER THAT, AND THEN ALSO MAKE SURE THAT THE OTHER PIECE IS, UH, UM, ANSWERING THE QUESTIONS.
I I HAVEN'T GONE THROUGH IT, UH, COMPLETELY MYSELF JUST YET.
UH, I SENT IT OVER TO, UM, ROB AT THE CITY.
UM, AND I THINK WHAT WE'RE GONNA DO, MY, MY PLAN OF ATTACK IS TO WORK WITH THE CITY AND WHOEVER ROB AND CITY STAFF FEEL LIKE NEEDS TO BE ON THEIR, UM, TEAM TO, TO REVIEW IT, COME TO CONCURRENCE WITH THEM, GET BACK WITH WILPERT, PROPOSE SOME REVISIONS, AND THEN ULTIMATELY, I GUESS SET A REAL ESTATE COMMITTEE MEETING TO REVIEW IT FURTHER.
AND THEN I GUESS MOVING IT ON TO, UH, FURTHER ACTION BY THIS BOARD AND CITY COUNCIL IS REALLY MY PLAN FOR ATTACK.
BUT, BUT THAT'S WHERE, WHERE, WHERE I AM, WHERE I'M GOING WITH IT AT THIS POINT.
UNLESS THERE'S SOMETHING ELSE THAT Y'ALL WOULD RATHER SEE.
NO, AND THEY CAN BEGIN EFFORT ON OTHER TASKS BEFORE, UH, BEFORE THE STREET THERE.
THERE'S NOT A LOT THEY CAN DO.
THEY CAN START BUILDING THEIR MODEL AND, BUT THEY CAN'T REALLY GET THE INPUT OF ALL THE TRAFFIC DATA INTO THE MODEL UNTIL THEY GET THAT.
SO, SO RIGHT NOW THEY WERE PLANNING IN THE PROPOSAL TO DO, UH, TRAFFIC COUNTS IN JUNE AND THEN HAVE A FINAL DELIVERABLE BY THE END OF SEPTEMBER.
SO THAT MIGHT BE SHIFTED ABOUT A MONTH AT THIS POINT BASED UPON.
BUT I, THAT MIGHT BE, UH, A LITTLE PREMATURE FOR ME TO SAY I HAVEN'T GOTTEN THAT BACK FROM THEM.
HAVE YOU GOT ANY UPDATES ON FROM TECH DOC ON WHEN THEY'RE GONNA FINISH THIS? WE'VE GOT THE UPDATES AND OF COURSE THE RAIN THAT'S OCCURRED OVER THE LAST COUPLE WEEKS HAS IMPACTED THEM SOME.
UM, AND BEFORE, UH, THEY HAD INDICATED BY SOMETIME IN THE JULY TIMEFRAME THEY'D BE DONE WITH EVERYTHING ON THIS SIDE OF 51ST STREET.
[01:50:01]
AND SO, UH, I DON'T KNOW IF WE'VE RECEIVED ANYTHING FURTHER FROM TEXTILE.I KNOW WE'VE GOT CALL
SO THAT, SO I THINK THAT'S THE, I MEAN I THINK WE'VE KIND OF WORKED THIS THROUGH THE REAL ESTATE COMMITTEE, ALTHOUGH NOW WE'VE GOT, I GUESS WE LEFT TALK TO JOHN PAUL ABOUT MEMBERSHIP.
UH, 'CAUSE WE KNOW WE'VE LOST ONE CITY COUNCIL MEMBER FROM THAT COMMITTEE POTENTIALLY COULD LOSE THE SECOND ONE DEPENDING ON WHAT, WHAT THE ELECTION HAS.
AND I GUESS IF THEY WANT TO KEEP THAT, I GUESS CITY COUNCIL ASIDE, IF THEY WANT TO KEEP THAT COMMITTEE CONFIGURED AS IT AS IT HAS BEEN.
BUT I THINK YOU PROBABLY GOT THE SAME EMAIL FROM BOB BROWN.
YOU KNOW, THEY'VE GOT A, THEY'VE GOT IT ON THEIR AGENDA FOR MAY 28TH AND SOUNDED LIKE WE'RE WE'RE CLOSE.
WE MAY NOT HAVE FINAL, UH, YEAH, I MEAN I WAS BASICALLY, I, I GOT THE EMAIL RIGHT BEFORE COMING IN HERE.
I WAS GONNA GIVE HIM, GIVE A VERBATIM THE SAME SPIEL I JUST GAVE Y'ALL.
AND THEN, UH, AS FAR AS, UH, YEAH, BECAUSE I KNOW, I KNOW I'VE BEEN COORDINATING WITH ROB ON THIS FROM THE CITY STANDPOINT, BUT MAYBE THERE'S SOMEONE ELSE THAT WOULD ALSO, BECAUSE THIS DOES HAVE TO DO WITH TRANSIT AND STUFF.
I DON'T KNOW WHO WOULD BE THE APPROPRIATE PEOPLE ON FROM THEIR SIDE TO HELP WITH THAT.
SO YEAH, I THINK KIND OF GET THAT FINALIZED.
WE HAVE HAVE A REAL ESTATE, MY NAME'S ROGER, LOOKING AT YOU TWO HAVE A REAL ESTATE COMMITTEE MEETING TO KIND OF REVIEW, RECOMMEND, AND THEN CITY COUNCIL COULD MAKE THEIR DECISION AND WE CAN MAKE, YOU KNOW, WE CAN REVIEW IT AS A BOARD ONCE WE GET THAT.
AND I, AND THEN I GUESS THE QUESTION IS ON THE, REALLY THAT SECOND PART, WE KIND OF HAD THE THOUGHT, YOU KNOW, DO WE SPLIT BOTH PIECES? DO WE PAY FOR ONE? DOES THE CITY PAY FOR THE OTHER? I MEAN, WE'VE HAD THOSE, WE STILL NEED TO, BUT WE NEED TO GET A NUMBER.
AND THEN WE CAN, AND, AND AGAIN, WE'VE GOT A FAIRLY, YOU KNOW, PRETTY NEW COUNCIL.
SO HOW DO THEY WANT TO, HOW DO THEY WANT TO APPROACH THAT? BUT I THINK YOU'RE DOING THE RIGHT, I MEAN, I THINK YOU'RE DOING THE RIGHT STEPS.
AND SO I THINK YOU WORK WITH ANGIE TO GET A REAL ESTATE COMMITTEE MEETING BECAUSE WE GOTTA GET POSTED AND SET UP SO WE CAN HAVE THE, WHEN YOU GET THE NUMBERS, YOU KNOW, WE CAN REVIEW THAT RECOMMEND AND THEN KEEP WORKING YOUR, YOU KNOW, CONTACTS WITH THE STAFF, WHICH I THINK IS A REALLY GOOD JOINT EFFORT BETWEEN YOU AND ROB AND THE CITY.
SO THAT WORKING, GOING DOWN THE PATH HERE.
[F.3 Discuss and Consider Authorizing the Port Director and Legal Counsel to Execute the Proposed Agreement for Purchase of Property at 1601 & 1623 Harborside Dr. and 108 17th Street Galveston, TX. - Rodger Rees]
DISCUSS AND CONSIDER AUTHORIZING THE PORT DIRECTOR AND LEGAL COUNSEL TO EXECUTE THE PROPOSED AGREEMENT FOR PURCHASE OF PROPERTY AT 1601 AND 1623 HARBORSIDE DRIVE IN 1 0 8 17TH STREET, TEXAS.ROGER RE UM, WE DISCUSSED THAT.
I'M, I'M, WHEN I LOOK AT THIS WORDING HERE, I'M NOT SURE THAT THAT'S, UM, READ THAT THAT'S THE RIGHT RULING, PLEASE OR AGREEMENT ADVISE US TO NEGOTIATE THE FINAL FORM WITH, TO, UH, BACK TO PROPERTY, LEASE THE PROPERTY, AN OPTION TO PURCHASE PURCHASE.
I'D MAKE THAT MOTION, THAT CORRECTION.
COULD I HEAR THE MOTION AGAIN? UH, I THINK IT'S, YEAH, SORRY.
MOTION TO AUTHORIZE, UH, THE PORT DIRECTOR WITH ASSISTANCE OF LEGAL COUNSEL TO NEGOTIATE A FINAL FORM OF AN AGREEMENT TO LEASE THE PROPERTY WITH AN OPTION TO PURCHASE.
AND THE AGREEMENT WILL COME BACK HERE TO, TO THE BOARD FOR APPROVE.
WELL, I, I THINK, OR DID WE WANT, WE'RE ASKING FOR THE APPROVAL RIGHT NOW BECAUSE, UM, I THINK TIME IS A B RIGHT.
MOTION TO, TO GO AHEAD AND AUTHORIZE THEM TO FINALIZE THE AGREEMENT.
YEAH, SO KIND THE EXECUTE, EXECUTE THE AGREEMENT.
I MEAN, WE'LL BRING IT BACK TOO.
I MEAN IT'S FINAL
SO WILL WILLIE MADE A MOTION? DO WE HAVE A SECOND? SECOND, SECOND.
SO DISCUSSION, WE, WE HAD DISCUSSED GETTING A, UH, COMMERCIAL APPRAISAL ON THE PROPERTY.
CAN THAT BE PART OF, UM, THE MOTION AS WELL TO CHECK THAT BOX? GET THE COMMERCIAL APPRAISAL? YEAH, YOU MADE THE MOTION.
DO YOU AGREE TO THE AMENDMENT TO ADD A COMMERCIAL APPRAISAL? AS LONG AS IT DOESN'T HOLD THE TIME TIMELINE UP, I THINK WE'RE, YOU KNOW, GET, GET A APPRAISAL FOR DUE JUST TO HAVE IT DUE PURPOSES JUST TO HABIT IT.
OBVIOUSLY IT'S, YOU KNOW, IT'S A HIGHLY SOUGHT AFTER PIECE OF LAND, IF NOT BY US, BUT MANY OTHERS THAT ARE ALSO LOOKING AT IT.
AND SO TO ME, APPRAISALS ARE IMPORTANT TO HAVE IF YOU'RE WHO WE ARE, OBVIOUSLY.
BUT AS SO PROCEDURALLY THE MOTION HAS BEEN AMEN.
AS THE PERSON WHO SECOND CONCUR WITH THE AMENDMENT.
NO, MY POINT IS THAT IT'S VALUABLE TO US
[01:55:01]
AT THIS MOMENT AND THEN 12 YEARS FROM NOW AS WELL.WE HAVE A MOTION AND A SECOND.
SO FURTHER QUESTIONS, DISCUSSION.
WELL, I, I HAVE, UH, I, I'VE EXPRESSED MY, UH, CONCERN ABOUT, I DON'T, I DON'T THINK IT'S NECESSARY FOR US TO BUY THIS LAND, SO I PROBABLY WON'T VOTE FOR IT.
UH, BUT IT'S, UH, I UNDERSTAND THE RATIONALE OF THE OTHER BOARD MEMBERS THAT JUST DON'T AGREE WITH IT.
I THINK IT IS, I THINK IT'S KIND OF PRESERVING THE OPTION FOR REALLY FUTURE BOARDS TO, YOU KNOW, IS THAT, DOES THAT BECOME A PIECE OF OUR PARKING STRATEGY, MOBILITY STRATEGY AS FAR AS ACCESS AND FUTURE DEVELOPMENT? SO IT IS KIND OF A PER, BECAUSE AS YOU SAID, THERE'S OTHER PEOPLE THAT WANT IT.
SO IF WE AT LEAST LOCK IT UP AND THEN WITH PARKING, WE CAN AT LEAST, YOU KNOW, PAY, GET OUR LEASE MONEY BACK, RIGHT? WITH LITTLE PROFIT.
SO IT PRESERVES THAT OPTION FOR THE FUTURE.
SHEILA, JUST WANNA MAKE SURE WE'RE, UM, AUTHORIZING YOU ALL TO EXECUTE THE CONTRACT THAT YOU STATED THAT YOU TOLD US ABOUT.
IF THERE WERE ANY, UH, MAJOR CHANGES, YOU WOULD COME BACK TO US YES.
YOU MAKE THAT POINT? YEAH, I THINK THAT WAS THE, THE KIND OF PROPOSED THAT IS DISCUSSED PIECE THERE.
ANY OTHER, ANY OTHER COMMENTS BEFORE WE VOTE? ALRIGHT, ALL IN FAVOR OF THE MOTION.
ALL OPPOSED? SO I THINK FIVE TO ONE IF I COULD DO MATH RIGHT? SEVEN MINUS ONE OR SIX FIVE.
[F.4 Discuss and Consider for Approval a Consulting Agreement Between the Board of Trustees of the Galveston Wharves and Potomac Partners DC, LLC - Rodger Rees]
F FOUR, DISCUSS AND CONSIDER FOR APPROVAL.A CONSULTING AGREEMENT BETWEEN THE BOARD OF TRUSTEES OF THE GALVESTON WARS AND POTOMAC PARTNERS DC LLC.
WELL THIS IS THE, UH, AGREEMENT WITH, UH, TONY PARTNERS.
UM, UH, AND, AND I WOULD SAY THAT IT WAS, IT SHOULD HAVE BEEN DONE BACK IN JANUARY AND UM, WE DID NOT, WE, WE HAD CONVERSATION BACK THEN.
I THINK THE BOARD APPROVED IT, BUT WE HAVE NOT, WE DID NOT EXECUTE IT.
AND SO I THINK WHAT WE DID WAS WE ADDED $500 TO THEIR MONTHLY FEE AND UH, SO WE JUST NEED TO RE RATIFY IT IF YEAH, MAKE A PERFECT, I'VE GOT A MOTION FOR APPROVAL.
SECOND FROM VICE CHAIRMAN GONZALEZ.
ANY FURTHER DISCUSSION? AND I GUESS WE'VE BEEN HAPPY WITH VERY HELPFUL THE WORK THAT WE'RE GETTING.
VERY, VERY HELPFUL BECAUSE WE'VE, I KNOW WE'VE MADE SOME KINDA CHANGE DIRECTION HERE YEARS, YEARS OR SO AGO.
NO, IT'S BEEN, IT'S BEEN A FEW YEARS, BUT I THINK WE'VE BEEN HAPPY WITH THE, THE ACCESS AND THE SERVICE THERE, SO.
ANY FURTHER QUESTIONS? DISCUSSION? ALL IN FAVOR? WE RAISE YOUR HAND.
YOU SHOULD, I JUST WANT, YOU SHOULDN'T HAVE A, THERE IS A RECORDING.
YEAH, THERE'S A, THERE IS A REPORT IN YOUR BOOK ABOUT WHAT? YEAH, WHAT KIND OF A, WHAT'S A STRATEGY? STRATEGY AND THEN I THINK ALSO, UM, YEAH, A RECAP OF WHAT THEY DELIVERED IN 2025.
SO THE LAST TWO CHAIRMAN OF THE HOUSE TRANSPORTATION COMMITTEE, THE LAST TWO CHAIRMAN HAVE BEEN HERE IN
IT'S BEEN, YEAH, IT'S BEEN IMPRESSIVE.
SO HAVING LITERALLY A SEAT AT THE TABLE.
ALRIGHT, SO WE'VE GOT THAT DONE.
[F.5 Discuss and Consider Agenda Items for the June 23, 2026, Board Meeting.]
F FIVE IS DISCUSS AND CONSIDER AGENDA ITEMS FOR NEXT MONTH.JUNE YOU WERE SAYING, YOU WERE SAYING 30, 33.
SO ANY, ANY UH, THING THAT WE NEED TO COMES TO MIND? I KNOW WE TALKED ABOUT THIS, UH, WE'VE TALKED ABOUT THIS, UH, RESERVE POLICY.
I DON'T KNOW WHAT POINT, YOU KNOW, IT'S NOT, DOESN'T HAVE TO BE NEXT MONTH, BUT SOME POINT WE WANT TO KIND OF, WE WELL WE NEED TO GET A DRAFT TOGETHER.
WANNA SIT DOWN AND JUST, AND KIND OF PENCIL OUT.
BUT I THINK WE'RE, LIKE WE'VE SAID, I THINK WE'RE GETTING NOW WHERE WE KIND OF GOT THROUGH THE BIG HUMP OF THE CAPITAL PROJECTS AND NOW WE CAN KIND OF SEE THE NEXT PHASES AND SO I THINK WE'VE GOT A GOOD HANDLE OF WHAT I THINK IN PRINCIPLE, I THINK WE'VE HAD A GOOD DISCUSSION OF WHAT THAT NEEDS TO LOOK LIKE.
WE NEED TO GET THAT, YOU KNOW, FORMALIZED BY, I'D SAY BY THE END OF THE YEAR.
LET'S GET THIS, LET'S GET THIS, GET IT FORMALIZED.
ANYTHING ELSE THAT MIGHT WANT TO GO ON THE AGENDA? ALRIGHT, WITH THAT WE'RE GOING TO
[G. COMMENTS FROM THE BOARD OF TRUSTEES]
MOVE ON TO COMMENT FROM THE TRUSTEES.I'M GONNA START OFF WITH MR. GONZALEZ HERE.
UM, MARITIME DAVE WAS VERY GOOD.
[02:00:01]
FOR PUTTING SUCH A GOOD THING TOGETHER.UM, WHAT YOU DIDN'T SEE WAS BRETT WAS TOURING KIDS THROUGH THE TERMINAL AND ALL ALONG THE PORT DURING THE SAME TIME.
SO BRETT, YOU KNOW, THE CITY, I HOPE THE CITY UNDERSTANDS, UH, THAT WHAT WE GIVE BACK TO THE CITY IS MORE THAN JUST DOLLARS.
IT'S THOSE MOMENTS FOR THOSE KIDS AND THAT'S THE BEST WAY WE CAN INVEST IN OUR FUTURE.
IT'S 'CAUSE IT TAKES TIME TO DO THAT.
THOSE ARE MOMENTS THAT YOU COULD BE SPENDING WORK ON SOME BIG DEALS.
UM, ALSO SPEAKING OF INVESTMENT INVESTING IN GALVESTON COLLEGE, THANK YOU ALL FOR, FOR THAT.
THAT WAS A, A NICE MOMENT, UM, TO BE ABLE TO GIVE THEM, UH, SOME MONEY SO WE COULD REALLY PUSH FOR SOME WELDERS AND ALL THE WORKFORCE.
BUT, UH, THAT'S NEEDED DESPERATELY A FORTUNATE BUILDING AND AGAIN, INVESTING IN OUR FUTURE AND NOT JUST THE PORTS FUTURE, BUT GALVESTON'S FUTURE HOME SITES AND BUILDINGS AND MORE PEOPLE MOVING TO OUR ISLAND, HOPEFULLY.
UM, AND IT JUST FELT GOOD BECAUSE THAT'S SOMETHING MY BROTHER TINA WAS A BIG PART OF GALVESTON COLLEGE, THE BIG WORKFORCE AND I FELT HIS SPIRITS THERE WITH US THAT DAY.
WELL, AND I WOULD JUST ACKNOWLEDGE, WILLIE, YOU'VE BEEN A BIG DRIVER OF KEEPING THIS IN FRONT OF US ON THE SCHOLARSHIP PIECE AND THEN, YOU KNOW, INCLUDING OTHERS AND WE DID WITH TEXAS A M OF COURSE, BUT THEN GALVESTON COLLEGE.
SO THANK YOU FOR YOUR LEADERSHIP AND, AND BRINGING THAT COMMUNITY PIECE TO THIS BOARD.
I WOULD JUST, UH, ECHO WILLIE'S COMMENTS ABOUT MARITIME DAY.
IT WENT OFF WITHOUT A HITCH, EVEN THOUGH WE HAD TO MAKE SOME ADJUSTMENTS WITH THE WEATHER FORECAST.
THANK YOU ANGIE, BRETT, STAFF KATHY THOMAS AS WELL FOR, FOR HELPING, UH, UH, PROMOTE THAT.
UM, IT SEEMS LIKE IT'S ONLY BEEN A COUPLE YEARS, RIGHT? THAT, THAT THAT MARITIME DAY HAS BEEN WHAT IT IS NOW.
IT'S GONNA CONTINUE TO IMPROVE AND I THINK WE'LL, WE'LL SEE MORE, UH, ENTITIES IN AND AROUND THE PORT, YOU KNOW, COME TO TO BE A PART OF THAT.
AND THAT'S EXCITING TOO 'CAUSE THE, UH, THE MIDDLE SCHOOL AND HIGH SCHOOL AGE CHILDREN REALLY BENEFIT FROM MEETING, UM, ALL THOSE DIFFERENT COMPANIES THAT ARE OUT THERE AND SEEING WHAT OPPORTUNITIES ARE THERE ONCE THEY, UH, GRADUATE AND JOIN THE WORKFORCE.
MR. PEARSON, WELL I WASN'T HERE FOR MARITIME DAY, BUT I'VE HEARD GREAT THINGS AND I WOULD ENCOURAGE EVERYONE TO READ THE EDITORIAL AND THE GALVESTON EVERY COUNTY DAILY NEWS TODAY VERY FAVORABLE ON THE MARITIME DAY AND THE THINGS THAT ARE HAPPENING HERE BEFORE.
CONGRATULATIONS TO THE ENTIRE TEAM HERE.
I'D LIKE TO SAY, UH, THANK YOU TO ALL THE STAFF FOR ALL YOUR EFFORTS AND, UH, THAT MARITIME DAY AND ALL THE OTHER STUFF THAT YOU DO YEAR ROUND.
THE, UH, I I REALLY ENJOYED THE DISCUSSION TODAY ABOUT, UH, THE LMG.
I THOUGHT, I THINK IF WE HAVE AN OPPORTUNITY TO HAVE ANOTHER DISCUSSION, MAYBE ON A DIFFERENT TOPIC, BUT TO BRING SOMEBODY ELSE THAT'S THINKING ABOUT DOING BUSINESS AND FOR THAT EXTENSIVE OF A, OF A DISCUSSION, I APPRECIATE IT.
I DON'T HAVE MUCH TO ADD OTHER THAN DO ALL VERY MUCH FOR ALL THAT YOU DO DAY IN, DAY OUT WHEN WE'RE SITTING AT THIS DESK, BUT MOSTLY WOMEN ARE NOT SITTING AT THIS DESK.
UM, IT, IT'S BEEN REALLY COOL TO WATCH THE JOURNEY OVER THE LAST, FOR ME, I KIND, I STARTED TO GETTING NOSTALGIC HERE 'CAUSE I GOT WHAT, THREE OR FOUR MEETINGS LEFT HERE, UM, MY SIX YEARS.
BUT IT'S BEEN REALLY COOL TO SEE THIS WRAPPED UP COVID AND ALL THE ISSUES THERE.
AND THEN THE, THE, THE, UH, TERMINAL EXPANSIONS AND THE DELIVERY.
I MEAN WE, WE KEEP, I I KEEP GOING BACK, BUT I MEAN, HAVING LIVED IN THAT WORLD BY THE TIME YOU GUYS BEEN ABLE TO DELIVER THESE, YOU KNOW, THE PORT BEING ABLE TO DELIVER WHAT THEY SAID ON TIME, ON BUDGET SAFELY AND HAVE THEM, I MEAN THAT'S JUST GOLDEN AS FAR AS OUR CREDIBILITY TO BE ABLE TO DO THAT.
AND WE, WE'VE DONE SOME REALLY DIFFICULT STUFF AND IT'S NOT, IT'S NOT EASY.
THE WATERFRONT OR FACILITIES OPERATING AREAS, I MEAN, YOU GUYS HAVE REALLY DELIVERED, THE TEAM HAS REALLY DELIVERED ON THAT.
IT FEELS GOOD TO BE SITTING HERE LOOKING AT AT ALL THAT.
AND YOU KNOW, AS WE'VE SEEN KIND OF NOW WE'RE GOING, WE'VE ACTUALLY GOT ALL THE MONEY PUT ASIDE FOR THE REST OF WHAT'S WAS KIND OF LEFT OF THAT, YOU KNOW, SAY THE FIRST VERSION OF THE MASTER PLAN AND NOW IT'S KIND OF THE LNG AND ALL THE OTHER THINGS.
WE'VE KIND OF NOW, OKAY, NOW, NOW HOW DO WE LINE THESE THINGS UP AND MOVE TO THE NEXT, RIGHT.
BUT IT'S, IT'S ALL GOOD STUFF TO HAVE, RIGHT? IT'S JUST, IT'S GOOD TRYING TO HAVE TO BE ABLE TO FIGURE THAT OUT.
I THINK THE TEAM THAT, YOU KNOW, ROGER, YOU'VE PUT TOGETHER HERE AND THE SUPPORT OF THE BOARD AND PREVIOUS BOARDS, IT'S, AND THE SUPPORT OF FUTURE BOARDS, I THINK IT'S REALLY EXCITING.
I MEAN, I THINK THAT IT'S KIND OF, THE POSSIBILITIES ARE ENDLESS REALLY AS FAR AS WHAT THAT CAN BE
[02:05:01]
JUST KIND OF LIMITED BY HOW WE CAN, YOU KNOW, MANAGE THE FINANCIALS AND THE TIMING AND THE PHYSICAL THINGS.BUT IT'S REALLY EXCITING TO SEE ALL THAT.
SO IT FEELS, IT FEELS REALLY GOOD, UM, WHERE WE'RE HEADED AND WHAT WE'RE DOING.
AND IT, IT'S A DIRECT RESULT OF ALL THE PEOPLE IN THIS ROOM AND, AND THE PEOPLE, UM, YOU KNOW, UP AND DOWN THE HALLWAYS THAT HAVE MADE THAT HAPPEN.
ROGER, ANY? NO, I I JUST WANNA THANK THE BOARD FOR THE, FOR THE SUPPORT THAT YOU'VE GIVEN ME AND, AND I THINK THAT, UH, YOU KNOW, ANGIE, I, I'M SITTING HERE AND I SEE IT, ANGIE AND KATHY AND DOROTHY AND EVERYBODY WORKING ON THIS MARITIME DAY.
UH, YOU KNOW, SOMETIMES I SIT HERE SAYING, WHERE IS EVERYBODY
SO IT WAS A, IT WAS VERY PROFESSIONAL.
UH, IT'S ALL, THE WHOLE THING WAS REALLY DONE VERY WELL.
EVERYTHING THAT YOU GUYS DELIVER, I MEAN IT COMES VERY, YOU KNOW, WHETHER IT'S THROUGH FINANCIAL REPORTS, NEW TERMINALS, MARITIME, IT, IT'S VERY INSURANCE AND GREEN MARINE, I MEAN IT ALL, THE PARKING, I MEAN, IT, IT LIKE, IT ALL COMES VERY PROFESSIONALLY AND I THINK THAT'S A TESTAMENT ROGER TO YOUR LEADERSHIP AND THE TEAM THAT YOU BUILT AND, UM, THE SUPPORT OF THE BOARD.
WITH THAT, I'M GONNA WRAP US UP AND SAY WE'RE ADJOURNED AT 1 42.