[00:00:03]
[A. CALL TO ORDER]
ANGIE, YOU'D LIKE TO BUILD ROLL CALL.MY NAME, COMMITTEE CHAIRMAN RICHARD MOORE HERE.
MY NAME'S COMMITTEE, VICE CHAIR WILL GONZALEZ, HERE, FINANCE COMMITTEE MEMBER SHEILA
HERE WE ALSO HAVE AN ATTENDANCE.
TRUSTEE ERIC STR ROGER AND ANTHONY BROWN.
UH, DO ANY OF THE, UH, MEMBERS HAVE, FEEL LIKE THEY HAVE A CONFLICT OF INTEREST AT LIKE SURFACE? NOT, UH, WE WILL MOVE ON TO THE INVOCATION TODAY.
IT'S GOING TO BE BY FATHER, FATHER WOLF OF THE CHURCH.
FATHER BOB UL RETIRED, BUT GOING TO GRACE CHURCH AND HELPING OUT.
FATHER, WE'RE SO BLESSED TO BE ABLE TO HAVE THIS TIME AND THIS PLACE TO MAKE DECISIONS THAT ARE SO IMPORTANT FOR OUR CITY.
I ASK THAT YOU GIVE THESE FOLKS THE WISDOM TO MAKE RIGHT DECISIONS, THE COURAGE TO CARRY THEM OUT, AND THE PERSEVERANCE TO SEE THAT THE DECISIONS THEY MAKE ARE BENEFICIAL AND WILL HELP THIS CITY BLESS EACH AND EVERY ONE OF THEM.
AS THEY BEGIN, AS WE BEGIN THIS MEETING, MAY ALL THAT THEY DO REFLECT THE GOODNESS THAT YOU WANT THEM TO HAVE.
I PRAY THIS IN OUR BLESSED LORD'S NAME.
[B. PRESENTATIONS AND ANNOUNCEMENTS]
JEFF, IF YOU WOULD, I'D ASK YOU TO, UH, MAKE A PRESENTATION TO FORMER MAYOR AND FORMER BOARD MEMBER BROWN.WITH THAT, I, I WILL READ THE, THE INSCRIPTION HERE FROM YOUR, UH, FOR YOUR AWARD, FOR YOUR SERVICE.
SO IN APPRECIATION OF IMPECCABLE LEADERSHIP AND LEGENDARY SERVICE, TRUSTEE MAYOR CRAIG BROWN, BOARD OF TRUSTEES OF THE GALVES BOARD, JULY, 2019 TO MAY, 2026.
AS WE SAID WHEN YOU WERE, UH, LAST MEETING A COUPLE OF SEVERAL MONTHS AGO.
BUT JUST THE APPRECIATION, CRAIG AND I SAY PERSONALLY FOR MYSELF, YOUR WISDOM, YOUR LEADERSHIP, YOUR CALMNESS.
TREMENDOUS ADDITION TO THE BOARD AND WE'LL, IT'S AN HONOR SERVING WITH YOU.
I WANTED TO THANK EVERYBODY FOR THIS.
UM, AS FOR LONG AS I CAN REMEMBER, UH, WHEN I WOULD TALK ABOUT ECONOMIC DEVELOPMENT ON THE ISLAND, WE'D TALK ABOUT TOURISM AS THE NUMBER ONE ECONOMIC ENGINE.
AND WE WORKED OUR WAY DOWN FROM THERE.
I WAS VISITING WITH OUR NEW MAYOR, MAYOR WASOWSKI RECENTLY, AND WE WERE TALKING ABOUT THIS AND WE'RE IN A NEW ERA.
UM, I THINK WE'LL BE SEEING VERY QUICKLY THAT WHEN WE TALK ABOUT ECONOMIC GROWTH IN GALVESTON, THE NUMBER ONE ENGINE WILL BE THE PORTING ON THIS.
AND THAT'S A NEW ERA FOR THIS.
UH, FOR MANY, MANY YEARS THAT HAS NOT BEEN THE CASE.
THAT IS THE RESULT OF ROGER AND HIS STAFF AND THE INDIVIDUALS SITTING AROUND THIS BOARD AND THOSE THAT SERVED IN THE YEARS BEFORE THIS.
UH, IT'S BEEN A PLEASURE WORKING WITH YOU.
UH, PEOPLE ASK ME WHAT IT'S LIKE TO BE RETIRED.
THE ISSUES I FIND INTERESTING AND I KEEP UP WITH, UH, BUT IT IS THE COMRADERY OF THE PEOPLE I SERVE WITH REALLY ON THIS.
SO, UH, THANK YOU FOR HAVING ME AND, UH, I GREATLY APPRECIATE BEING ON THE LORD'S BOARD FOR THESE MANY YEARS.
[00:05:01]
ALRIGHT, THANK YOU SO MUCH, MAYOR BROWN.[C.1 PUBLIC COMMENTS]
GONNA MOVE INTO GENERAL BUSINESS.THE FIRST ITEM ON THAT AGENDA, SUB AGENDA IS PUBLIC COMMENTS THAT WE HAVE TODAY.
TED O'ROURKE, O'ROURKE MORNING.
DON'T WANNA RAIN ON THE PARADE.
AND I THINK THAT DR. BROWN DID A WONDERFUL JOB AS, AS, UH, ON THIS BOARD AND DEDICATED AND SERVED, SERVED THE, UH, FORT VERY WELL FOR ALL THOSE YEARS OF, I GOT MY CLOCK IN THE MAIL WHEN I CAME OFF, SO I'M JUST MAKING A JOKE HERE.
IT WAS AN HONOR WHEN I SERVED ALSO.
BUT ONE OF THE THINGS I, I JUST WANTED TO, TO TRY TO MENTION IS THAT I, I SENT IN A REQUEST, UH, I GOTTA PULL IT UP JUST ONE SECOND.
I USE MY PHONE, I MESS UP, UM, ON THE DIFFERENCE BETWEEN THE AUDITED AND THE UN AUDITED OVER A MONTH AGO.
AND THEN I GOT A RE, UM, RESPONSE FROM THE COURT THAT IT WAS OPEN RECORDS REQUEST.
THAT SAID, IF YOU HAD ANY QUESTIONS, YOU COULD ASK THEM AND THEY WOULD, THE FINANCIAL, THE CHIEF FINANCIAL OFFICER WOULD ANSWER THAT.
MY QUESTION WAS, IS WHY WAS THE UNAUDITED IN THE AUDIT OF THE $7 MILLION DIFFERENCE? AND I STILL HAVEN'T GOTTEN THOSE ANSWERS, BUT HOPEFULLY, YOU KNOW, I WOULD LIKE THE BOARD TO AT LEAST BE ABLE TO LOOK AT THAT AND COME UP WITH A, A REASON WHY THERE'S SUCH A BIG DIFFERENCE.
AND THE SECOND REASON, AMIR, IS TO TALK ABOUT THE, THE BONUSES THAT ARE BEING PAID.
AND I'VE ALWAYS BEEN VERY BELIEVING, REALLY VERY WELL HELPING YOUR EMPLOYEES AND, AND TAKE CARE OF YOUR EMPLOYEES AT THE BOARD OR WHEREVER YOU ARE.
BUT THAT'S NOT WHAT WAS SET UP WHEN I WAS THE CHAIRMAN OF THIS BOARD.
IT WAS SET UP ON A, ON A DELTA YEAR TO YEAR ON HOW YOUR BONUSES WOULD BE PAID ON THE, THE TIME OF THE PROFIT SHARING IT WAS SET UP.
FIRST OF ALL, YOU NEED TO LOOK AND SEE WHETHER OR NOT PROFIT SHARING IS ACTUALLY LEGAL AT THE TIME.
THE COUNCIL SAID IT WAS LEGAL.
UH, I'M JUST SAYING IT'S, IT'S, IT'S KIND OF REALLY, IT REALLY FLUTES IN ME IS BECAUSE WHEN THIS FIRST CAME ABOUT, THERE WAS AN ARTICLE THAT RAN ON NOVEMBER THE SEVENTH, 2019, AND IT TALKED ABOUT OUR REPORT DIRECTOR, MR. REESE, AND SAID HE, IT SAYS HE ALSO HERE PASSED OUT $8,400 AND A HUNDRED DOLLARS BILLS TO FORT STAFF MEMBERS WITHOUT DOCUMENTATION TO TRANSACTIONS OR INFORMING THE BOARD OR THE IRS.
THIS HAS LED FROM GIVING OUT A HUNDRED DOLLARS BILLS TO BUY LOYALTY TO $1.6 MILLION IN YOUR BUDGET FOR NEXT YEAR.
AND THAT'S NOT WHAT WE, WE DO WITH PUBLIC MONEY.
THOSE MONEY SHOULD BE USED TO HELP THE CITIZENS OF GALVESTON.
YOU DON'T WANT TO TAKE ANYTHING AWAY FROM THE EMPLOYEES.
THEY'RE PAID WELL, THEY GET THEIR COLA, THEY GET THE PROPER, UM, MONEY THAT THEY'RE DESERVED.
BUT SINCE SPENDING IT LIKE THIS, IT'S JUST UNBELIEVABLE.
AND THAT'S NOT WHAT WAS SET UP.
IT WAS SET UP ON THE BASIS OF YEAR TO YEAR.
IF YOU MADE MORE MONEY THAN THEY GOT THE BONUS.
IF THEY DIDN'T, IF THERE WAS NO PROFIT SHARING, THERE WAS NOTHING TO CAME THROUGH.
[C.2 APPROVAL OF THE MINUTES]
CAN, UH, APPROVE OR REVIEW AND APPROVE THE MINUTES FOR THE LAST MEETING.ARE YOU MAKING A MOTION TO APPROVE THEM? I'LL SECOND.
[D.1 CFO Report/Consent Agenda]
ARE YOU, UH, PREPARED TO GO THROUGH THESE? I'M SURE YOU ARE.I'M READY TO GO BACK, START GOING BACK TO 'EM.
I MISSED, MISSED A COUPLE OF BOARD MEETINGS.
I THOUGHT I WAS ONLY GONNA MISS ONE, BUT CHANGE THE CHANGING AND ALL THAT.
IN ALL SERIOUSNESS, HE DID, HE DID A REALLY, REALLY GOOD JOB.
HE AND THE REST OF THE STAFF DID A FABULOUS JOB WHILE I WAS OUT.
UH, MONTH OF MAY IS KIND OF A BLUR TO ME.
AND, UH, GETTING, GETTING RE ACCLIMATED AFTER BEING OUT FOR A MONTH.
IT'S TAKEN A LITTLE BIT OF TIME, BUT, UH, WE'RE BACK THERE ANYWAY FOR THE MONTH OF JUNE.
AND I'M GONNA GO OVER THE MONTH REALS QUICKLY
[00:10:01]
BECAUSE THE REAL, REALLY WE WANT TO FOCUS ON WHERE WE ARE.YEAR DATE ON THE MONTH OF JUNE, UM, OUR MONTH TO DATE NET INCOME WAS 2.6 MILLION.
THAT WAS, THAT WAS UNDER WHAT WE HAD BUDGETED BY 1.5 MILLION OF WHICH 1.4 MILLION OF THAT 1.5 MILLION WAS RELATED TO THE JUST TIMING OF GRANTS.
WHEN WE GET TO YEAR TO DATE, YOU'RE GONNA SEE THAT, THAT THAT'S ALL LEVELED OUT.
IT, IT'S, IT WAS A TIMING DIFFERENCE ON THE, ON THE GRANT FUNDS OUR OPERATING REVENUE FOR 8.7 MILLION FOR THE MONTH.
UM, SO WE'RE, WE'RE ABOUT 300,000 OVER BUDGET.
OUR MONTH TO DATE, OPERATING EXPENSES BEFORE DEPRECIATION, 4 MILLION, WE WERE SLIGHTLY OVER BUDGET THERE.
THAT WAS PRIMARILY BECAUSE WE HAD C NNN WAS DOING SOME ADDITIONAL WORK.
YOU KNOW, WE'VE USED CNNA LOT OF TIMES TO DO SOME CAPITAL WORK, BUT THIS WAS, THEY WERE DOING SOME OTHER CATCH UP WORK RIGHT NOW.
AND OUR CASHFLOW FOR THE MONTH WAS, UM, ABOUT 2.9 MILLION.
THIS IS AN, UH, JUST OPERATING BROKEN DOWN.
I WASN'T THAT I, I THINK I'VE DONE 15 MINUTES BEFORE, BUT NEVER, NEVER IN THREE.
UM, THIS IS, THIS IS THE, THE FINANCIAL STATEMENT PER SE, UH, SHOWING YOU WHAT WE DID FOR THE MONTH.
AND NOTE THAT WE DID HAVE CAPITAL EXPENDITURES OF 12.8 MILLION.
NOW, UM, MOVING ON TO THE REVENUES, JUST BREAKDOWN OF THE REVENUES, UM, IF ANYONE HAS ANY QUESTIONS, I'LL BE GLAD TO ADDRESS THEM.
OTHERWISE, WE'LL, WE'LL MOVE RIGHT ALONG TO THE EXPENSE SIDE.
THE EXPENSES, IF, AND I, LET ME GET, AND IF ANYONE HAS ANY QUESTIONS ON THE EXPENSES FOR THE MONTH WE'RE RUNNING, ARE WE RECONCILED? OKAY.
NOW WITH THE WATER UTILITY EXPENSE PRETTY MUCH YEP.
THAT, THAT MAJOR, UH, ISSUE WE HAD, THEN WE'VE GOT THAT RESOLVED.
YOU DON'T HAVE ANY OTHER ONES? I DON'T, I'VE NOT REALLY HEARD OF ANYTHING THAT MAJOR.
YOU KNOW, WE, WE DO HAVE ANOTHER METER OR TWO THAT WE'RE STILL ASKING SOME QUESTIONS ON, BUT IT'S NOT, IT'S NOT TO THE EXTENT THAT WE HAD BEFORE.
LET'S TALK ABOUT YEAR TO DATE.
YEAR TO DATE, WE'RE AT 3.3 MILLION IN OUR YEAR TO DATE, NET INCOME 33, UM, 33.3 MILLION.
UH, AND REALLY IT IS, UM, WE'RE 3.6 MILLION OVER BUDGET.
YEAR TO DATE, OUR OPERATING REVENUES ARE 1.6 MILLION OVER BUDGET.
OPERATING EXPENSES ARE 1.8 UNDER BUDGET.
AND, UH, ENDING CASH FLOW FROM OPERATIONS.
ALRIGHT, THERE, UH, WHAT'S GOING ON WITH THAT OVER WHAT'S DRIVING OVER BUDGET IS PARKING, PASSING SERVICE CHARGES MAKE UP THE, THE MAJORITY OF WHAT'S, WHAT'S CAUSING THE OVERAGE, UH, THE EXPENSES OR, UH, CONTRACT SERVICES, SALARIES AND OTHER EXPENSES, UH, YEAR TO DATE ARE.
UM, AND THEN NON-OPERATING INCOME, WE'RE PRETTY MUCH RIGHT ON BUDGET, ON NON-OPERATING INCOME.
NON-OPERATING EXPENSES WAS SLIGHTLY UNDER BUDGET.
UH, THAT'S WHERE WE SEE THE SLIP FILL EXPENSES COME THROUGH.
AND THAT RELATED TO, UH, THE CLOSURE AND SLIP FILL THAT'S RELATED THAT WE'RE DOING AS AN ALTERNATE PROJECT RELATED TO IKE AND, UH, ANY EXPENSES THAT ALSO HELD EARLIER, THE EXPENSES WE HAD RELATED TO BARREL.
AND WE'LL RECOGNIZE THE BARREL EXPENSE REVENUE ONCE WE GET PAID FROM T.
[00:15:04]
OKAY.UH, YEAR TO DATE, IF THERE'S YEAR FINANCIALS, YEAR TO DATE, WE SPENT RIGHT, EIGHT $36 MILLION IN CAPITAL, UH, MOVE ALONG OUR REVENUES.
UH, ONE OF THE THINGS THAT I WANT TO POINT OUT IS OUR REVENUE PRODUCING SERVICES IN MISCELLANEOUS, THAT'S, THAT'S UP 89% OVER PRIOR YEAR.
IT'S DOUBLE WHAT WE HAD IN THE BUDGET.
THIS IS WHERE WE CAPTURE TIPPING FEES.
UM, SO THAT'S, THAT, THAT REALLY SKEWS IT.
WE NEVER REALLY BUDGET FOR TIPPING FEES.
THAT'S WHEN PEOPLE, WE ALLOW PEOPLE TO PUT STUFF IN OUR, UH, SPOILS AREA.
SO WHEN THAT COMES IN, IT, IT, THAT'S JUST MONEY THAT WE DON'T, WE DON'T COUNT ON GETTING, BUT WHEN WE GET IT, IT IT, THIS IS WHERE IT FLOWS THROUGH.
UM, ANY OTHER, ANY QUESTIONS ON THE OTHER REVENUES? NO.
WE'LL JUST KEEP RIGHT ON MOVING.
HERE'S THE, UH, HERE TO DATE REVENUES.
AND SOMEONE COULD ASK ME, WELL, HOW MUCH OF THIS IS RELATED TO CRUISE AND CRUISE RELATED PARKING? IF YOU LOOK AT IT, IT'S REALLY ABOUT 70, UH, IN EXCESS OF 70%.
RIGHT NOW, IT'S CRUISE AND CRUISE RELATED PARKING.
YOU'VE GOT, UH, GROUND TRANSPORTATION, PASSENGERS, PARKING, AND, UH, WHEN YOU GET INTO REAL ESTATE ABOUT, UH, A LITTLE OVER 4 MILLION OF THAT IS RELATED TO THE LEASE WITH, UH, WITH ROYAL CREW.
I MEAN, A COMMENT, I GUESS LAST YEAR WE WERE, PARKING WAS MORE THAN PASSENGERS, RIGHT? I GUESS THE TERMINAL, TERMINAL 16 OPENED UP.
NOW IT'S PASSENGER FEES ARE MORE THAN PARKING.
ANYONE HAS ANY QUESTIONS, BE HAPPY TO ADDRESS THOSE.
AND HERE THEY ARE, JUST A CHART SHOWING WHAT, WHERE, WHERE THE EXPENSES ARE.
ONE OF THE THINGS I ALWAYS LOOK AT THIS JUST, JUST ONE OF THE THINGS I ALWAYS LOOK FOR WHEN WE LOOK AT DEPRECIATION.
I LOOK AT WHAT WE'RE DEPRECIATING, UH, RELATED TO CRUISE AND PARKING, AND THEN WHAT OUR DEBT SERVICE IS RELATED TO CRUISE AND PARKING.
RIGHT NOW, OUR DEPRECIATION IS JUST ABOUT $8 MILLION YEAR TO DATE.
JUST A LITTLE UNDER $8 MILLION YEAR TO DATE FOR CRUISE AND PARKING.
AND, UM, OUR DEBT SERVICE, THAT'S ABOUT, IT'S ALMOST HALF OF OUR DEBT SERVICE EACH YEAR.
SO IT'S, WHICH MEANS WE ARE DEPRECIATING THE ASSETS FAIRLY CLOSE TO WHAT THE, WHAT THE, UH, UH, DEBT SERVICE IS.
IT'S JUST SOMETHING THAT I, I'VE ALWAYS TRIED TO MONITOR AND SEE HOW WE'RE DOING.
UH, IF YOU'LL LOOK AT THE NON-OPERATING INCOME BEFORE ALLOCATIONS OF DEPRECIATION, YOU'LL SEE THE CONTRIBUTION MARGIN.
UH, BEFORE ALLOCATIONS OF DEPRECIATION FOR A CRUISE WAS 28 MILLION.
PARKING WAS 14, GROUND TRANSPORTATION WAS 1.1, AND ON A CROSS, UM, REMEMBER WE'RE ALLOCATING THESE, UH, MISCELLANEOUS COSTS.
UH, IT'S BASED UPON THE REVENUE STREAM.
AND THEN THE DEPRECIATION IS PRETTY MUCH DIRECTLY RELATED TO THAT STREAM OF BUSINESS.
HOW ABOUT YEAR TO DATE, UH, TRAVEL TRAINING AND DEVELOPMENT? SO FAR THIS YEAR WE'VE SPENT 180 RIGHT AT 184,000 ON TRAVEL TRAINING AND DEVELOPMENT.
WE'RE DOING MORE, MORE ITEMS NOW BEING DONE ONLINE.
UM, AND IT'S JUST SAVING US SOME MONEY.
PLUS SEEMS LIKE WE, NO MATTER HOW MUCH, HOW TIGHT, WE TRY TO BRING THAT DOWN AND
[00:20:01]
WE NEVER SPEND EVERYTHING WE BUDGET.WELL, WE, WE ALSO ALSO HAVE, UM, BREAK BALL COMING UP.
THAT WHICH IS A, A BIG FOR US.
AND WE'LL START PAYING IN JULY.
WE'LL, JULY AND AUGUST, WE'LL START MAKING PAYMENTS FOR OUR, FOR OUR BOOTH AND EVERYTHING RELATED.
WE'RE GONNA GO AND CAP THIS A LITTLE BIT MORE.
OUR TOTAL CASH ON HAND WAS 73.8.
OUR UNRESTRICTED WAS 26.89, LEGALLY RESTRICTED.
THIS IS RELATED TO DEBT SERVICE.
UH, THE DEBT SERVICE RESERVE FUND, THE DEBT SERVICE.
UM, WE'RE ACTUALLY GONNA HAVE A MAJOR PAYMENT COMING UP AUGUST 1ST.
AND THEN OUR INTERNALLY RESTRICTED FUNDS, WE'RE GONNA HAVE A FAIRLY LARGE PAYMENT COMING OUT OF THAT IN JUST A FEW DAYS.
WE'LL TALK ABOUT THAT IN JUST A COUPLE MINUTES.
CHECK OF PAYMENTS TO LOCAL VENDORS WAS 57% OF OUR ORDINARY OPERATING PAYMENTS WORTH FOR LOCAL VENDORS ACCOUNTS OVER 90 DAYS.
ACTUALLY, THE ACCOUNTS OVER 90 DAYS WERE SHOWING HERE AT ONE 60.
WHEN WE PRODUCE THIS REPORT AS OF THIS MORNING, THAT OVER 90 DAY BALANCE HAS GONE DOWN TO ONE JUST UNDER 115,000.
SO WE'RE, WE'RE STEADILY COLLECTING THAT.
IT BOARD MEETINGS A LITTLE EARLY THIS MONTH, AND WE'VE GOT A FEW PEOPLE THAT HAVE PAID AS AS OF YESTERDAY.
AND, UH, SO THIS, THERE'S THE AGENT AGAIN.
THAT 1 59 HAS GONE DOWN TO 114,600 AS WE COLLECTED 40, A LITTLE OVER 44,000 BUCKS CASH POSITION.
UH, FOR OUR INTERNALLY RESTRICTED, YOU CAN, YOU CAN KIND OF SEE WE'VE GOT PAYMENTS TO THE CITY THAT WE'RE, WE'RE SETTING ASIDE OUR DREDGING.
WE'RE STARTING TO, WE'RE DOING SOME DREDGING RIGHT NOW.
SO OUR DREDGING WILL, WILL, WE'LL BE SEEING SOME DECLINE IN THE DREDGING, EVEN THOUGH WE ARE MAKING MONTHLY CONTRIBUTIONS INTO THE DREDGING ACCOUNT.
WHAT ABOUT TO PAY THAT? THAT'S PAID? WE GOTTA PAY THAT EVERY SIX MONTHS.
UH, THAT WILL BE GOING UP, BE LATE THIS WEEK, EARLY NEXT WEEK.
AND THEN, UH, THE BOARD OF PROOF CAPITAL IMPROVEMENT FUNDS THAT WE'VE SET ASIDE OF ABOUT 11 MILLION, OUR LEGAL RESTRICTED FUNDS.
IF YOU LOOK, YOU SEE THE 2.8, THE 5.7, AND THE 2.6 MILLION FOR SERIES 23, 24 A AND 24 B.
IT'S TIME TO MAKE THE ANNUAL PRINCIPAL PAYMENT AND SIX MONTHS OF INTEREST PAYMENTS WE'RE ABOUT, WE'RE ABOUT TO PAY OUT $14.1 MILLION ON ACTUALLY THE, THE PAYMENT IS DUE ON AUGUST 1ST.
THE MONEY'S ALREADY SITTING IN THE BANK OF NEW YORK, UH, FOR THAT PAYMENT.
SO WE'VE ALREADY GOT THAT IN THE RIGHT ACCOUNT READY TO GO.
AND THEN WE HAVE THE DEBT RESERVE FUND OF 17.5 MILLION.
AND THEN THE, UM, RIGHT AT THE END OF JUNE, WE STILL HAD 2.4 MILLION LEFT IN THE, IN THE DEBT ISSUANCE, ALONG WITH THE INTEREST WE EARNED ON THE DEBT ISSUANCE FOR THE 20 2004 A AND B UH, FUNDS.
UM, UH, WOULD LIKE TO NOTE TOO THAT, UM, THAT WE ARE FOR ANOTHER LARGE, WE, WE ARE GOING IN THE BOARD AGENDA ITEM LATER TODAY IS, IS A PAYMENT TO TEEM, UH, FOR 1.5 MILLION.
SO WITH THAT, JUST THE DEBT SERVICE, THE CCL PAYMENT AND TEEM, THAT'S 16.6 MILLION GOING OUT ON, UH, THE NEXT 10 DAYS OR SO.
MARK, BEFORE YOU LEAVE THAT, JUST TO COMMENT, I GUESS FOR JOHN PAUL, REALLY THE, THE BOX THAT THIS IS THE JIM BOROUGH BOX AT THE BOTTOM IS, IS WE PUT AWAY CAPITAL.
WE'VE BEEN ON A PRETTY AGGRESSIVE CAPITAL EXPENDITURE.
AND THEN IF YOU LOOK FOR JOHN, JUST IN TAB FOUR UNDER HERE, PAGE FIVE, UM, THERE IS A CHART THAT KIND OF GIVES A LITTLE MORE DEPTH INTO HOW MUCH CAPITAL APPROVED OUT OF OPERATIONS OUT A DEBT OUT GRANT.
IF YOU LOOK UNDER TAB FOUR, PAGE FIVE, THERE'S
[00:25:01]
A REALLY GOOD SUMMARY OF WHERE WE ARE FROM THE CAPITAL STANDPOINT FOR JOHN PAUL'S SAKE.IS IT FIRST TAB FOUR OR THE SECOND? YEAH, EXACTLY.
AND I'D LIKE TO ADD TOO, BECAUSE I, AND I, I APOLOGIZE FOR MENTIONING THIS TO YOU EARLIER AS A NEW BOARD MEMBER, UNDER TAB TWO IS A MORE DETAILED DESCRIPTION OF THE, OF THE, UH, REVENUE AND EXPENSES.
TAB TWO, IT GOES INTO A LOT MORE DETAIL.
UM, ACTUALLY WHAT I'M TRYING TO DO IS JUST HIT THE, HIT THE REALLY HIGH POINTS IN THIS PRESENTATION, SIR.
AND THE COMMENT I'D MAKE IS THAT WE ARE, UH, IN, WE HAVEN'T BEEN IN THAT POSITION NOW, BUT WE BASICALLY HAVE ALL OF THE FUNDS, REMAINING FUNDS, WE HAVE COMMITTED ON CAPITAL PROJECTS OUT OF OPERATIONS NOW SET ASIDE, SO BEFORE WE WERE, WE WERE COUNTING, WE HAD DISCUSSIONS ON COUNTING ON FUTURE CASH FLOW AND KIND OF MANAGING THAT, DOING THE CAPITAL PROJECTS WITH THE CASH FLOW.
WE ARE NOW HAVE ALL THAT FUNDS SET ASIDE.
UH, SO BASICALLY EVERYTHING IS ACCOUNTED FOR AS FAR AS OUR REMAINING CAPITAL SPENDING FROM OUR, FROM OUR PROGRAMS, WHICH IS, AS YOU SEE, HAS KIND OF CHANGED THE WATERFRONT OUT THERE OVER THE LAST SEVERAL YEARS.
PUN INTENDED, NO PUN NO, NO PUN INTENDED.
IT'S BEEN A REALLY GOOD EFFORT.
AND I, AND AGAIN, I'LL GET THROUGH THOSE TO MY ENGINEER FRIENDS BACK THERE, THAT BRINGING THESE PROJECTS IN ON TIME, ON BUDGET IS NOT SOMETHING THAT HAPPENS ALL THE TIME, PARTICULARLY IN THIS ENVIRONMENT OF INFLATION AND EVERYTHING.
SO KUDOS TO STAFF AND FOR, UH, DOING WHAT YOU SAID AND BRINGING IT IN ON TIME AND COST.
STATUTE CURRENTLY AS AT THE END OF JUNE ANYWAY, WE HAD 131 COURT FULL-TIME EMPLOYEES.
SO RIGHT NOW WE'RE, UH, FIVE UNDER WHAT WE HAD BUDGETED FOR INITIAL STAFF.
WE'LL NOTE THAT WE ARE, LAST YEAR AT THE SAME TIME, WE ONLY HAD 136 EMPLOYEES.
SO WE HAVE INCREASED, WE GO THROUGH SINCE, UH, OR GROWN GROWING.
SO WE'RE GONNA CONTINUE TO HAVE
NOW Y'ALL PAUSE, SAID THIS TO YOU,
NOW I, I THINK THERE'S, UH, AND, AND THIS, THIS IS YEAR TO DATE.
NOW, OUR YEAR TO DATE, WE'RE ON A, WE'RE ON A CALENDAR YEAR BASIS, WHEREAS THE CITY'S ON A, UH, PHYSICAL YEAR BASIS.
SO, FOR EXAMPLE, IN THE ARTICLE WE HAD THAT WAS IN THE PAPER, PUT OUT THIS PAST WEEK TALKING ABOUT HOW MUCH WE'RE GONNA BE CONTRIBUTED TO THE CITY THIS YEAR.
IT IS THIS CALENDAR YEAR, NOT THE CITY'S PHYSICAL YEAR THAT THERE WAS SOME CONFUSION.
AND, AND MARK, I'LL JUST, WE, WE MADE THIS COMMENT WHEN WE WERE BRINGING THE NEW PARKING GARAGE ONLINE, THAT THAT'S GONNA GENERATE ROUGHLY A HALF A MILLION MORE INCOME TO THE CITY AT FULL YEAR OF OPT AT $1 PER CAR PER DAY, ROUGHLY.
SO IT'S UP SIGNIFICANTLY FROM PRIOR YEARS.
'CAUSE OF THAT PARKING GARAGE.
ANYWAY, UM, WITH THAT SO FAR, UH, AS OF END OF JUNE, BUT THE CALENDAR YEAR, WE'VE CONTRIBUTED, UH, 1.8 MILLION, RIGHT AT 1.9 MILLION TO THE CITY AND THE $40,624 TO THE SCHOOLS.
UNFORTUNATELY IT HADN'T BEEN GOING UP.
UH, WE HAD ONE DOCKET YOU DISCOUNT FOR THE MONTH, AND THEN THIS IS SOMETHING NEW.
AND ROGER AND I HAVE BEEN TALKING ABOUT THE BOARD'S BEEN TALKING ABOUT IT.
WHAT DO WE NEED TO HAVE IN RESERVE? UM, SO WE, WHAT WE DID, WE SAID, ALRIGHT, WHAT HAPPENS TO US IF CRUISE GOES AWAY AND WE NEED 90 DAYS OF OPERATING REVENUE, BUT WE STILL, THIS IS WHAT HAPPENED DURING THE NO SALE ORDER.
CRUISE WENT AWAY, WE KEPT CARGO.
UM, SO WE TOOK A LOOK AT THAT AND SAID, ALRIGHT, WE
[00:30:01]
NEED 90 DAYS OF CASH RESERVES FOR THAT.WELL, THAT CAME UP TO JUST UNDER 2100, 2 $0.1 MILLION.
WE ALSO TOOK IT A STEP FURTHER.
LET'S SET US, LET'S IDENTIFY ANOTHER FULL YEAR'S WORTH OF DEBT SERVICE.
YOU KNOW, WE ALREADY HAVE THE DEBT SERVICE RESERVE ACCOUNT SITTING AT THE BANK OF NEW YORK, UH, EQUAL TO ONE YEAR OF DEBT SERVICE, AND WE'RE CONTRIBUTING EVERY MONTH TO THE ANNUAL DEBT SERVICE.
BUT LET'S, LET'S BE DOUBLY CAUTIOUS AND THIS WAY WE WOULD HAVE TWO YEARS OF DEBT SERVICE SET ASIDE, PLUS WE'LL BE CONTRIBUTING TO THE CURRENT YEAR.
UM, MARK, IF I COULD JUST THAT YEAR OF DEBT SERVICE THAT THE, UH, LENDER THAT THE BOND TRUSTEE IS HOLDING DOESN'T GET TOUCHED UNLESS THERE WAS A DEFAULT.
SO THAT IS A, THAT IS, THAT'S, THAT'S A WORST CASE SCENARIO.
YOU DON'T WANT TO GET TO THAT.
WE DON'T WANT, WE DON'T WANT TO TOUCH, WE WANT TO USE THAT MONEY TO MAKE THE LAST BOND PAYMENT
THAT'S WHAT, THAT'S, THAT'S WHAT WE WANT TO USE THAT MONEY FOR.
THAT'S, THAT'S WHAT I ALWAYS LOOK FOR THERE.
WE'VE GOT THE LAST PAYMENT, UM, ALREADY SET ASIDE.
SO ANYWAY, THAT THE ANSWER TO THE QUESTION IS BASICALLY WE NEED 20, WE NEED ABOUT $20 MILLION.
AND IF YOU LOOK AT OUR, GO BACK AND LOOK AT OUR TOTAL CASH, WELL, WE HAVE 78 MILLION IN TOTAL CASH.
NOW GRANTED, PART OF THAT'S SET ASIDE AND ALREADY, BUT WHEN YOU LOOK AT OUR, UH, THE CASH THAT'S NOT LEGALLY RESTRICTED, THAT SHEET 26.8, IT'S 26.8 THAT'S UNRESTRICTED.
BUT THEN THE, THE, UH, INTERNALLY RESTRICTED FUNDS ARE, THEY'RE, THEY'RE, THEY'RE ONLY SET ASIDE BY BOARDS.
THEY'RE NOT CONSIDERED LEGALLY RESTRICTED.
SO WHEN YOU ADD THAT IN THERE, THAT PUTS US BACK UP TO ABOUT $40 MILLION.
BUT MOST OF THAT IS GOING OUT IN THE NEXT 10 DAYS, CORRECT? WELL, WE GOT NO, WE'VE ALREADY GOT, YEAH, AUGUST WE'VE GOT, THAT'S LEGALLY RESTRICTED.
WE'VE GOT 2.8 COMING OUT OF INTERNALLY RESTRICTED.
WE'VE GOT THE BIG DEBT PAYMENT, UH, THAT'S COMING OUT OF IN LEGALLY RESTRICTED FUNDS.
THAT MONEY IS ALREADY SITTING THERE IN THE BANK OF NEW YORK IN THE, THE ONE IN, IN THE PURPOSE TO SEE THOSE, UH, 2023 SERIES 24 A AND 24 B SERIES.
THOSE MONIES ARE THEY, THEY ACTUALLY ARE IT READY TO GO ALREADY? AND WE MADE THE JULY DEPOSIT, WHICH, UH, WE HAVE MONEY THERE TO MAKE THAT DEBT PAYMENT ALREADY.
AND THAT'S, UH, ONE YEAR, UH, PRINCIPLE AND SIX MONTHS OF INTEREST.
ERIC'S POINT WAS INTERNALLY RESTRICTED.
WE KIND OF ALREADY GOT IT INTERNALLY.
WE, IT IS, IT IS SOMEWHAT SPOKEN FOR SOMEWHAT CAPITAL PROJECT.
WORST CASE WE COULD SLOW, WE COULD PULL SOME MONEY OUT THERE IF RIGHT.
WHICH IS WHAT PRETTY MUCH WHAT WE DID WHEN, UM, WE SLOWED SOME THINGS DOWN RIGHT WHEN WE WENT WITH NO SALE ORDERS.
AND I THINK, EXCUSE ME, THE NEXT STEP HERE, AND MARK AND I WERE UH, TALKING ABOUT THIS QUITE A BIT, IS, UM, HOW WE FUND, HOW WE FUND THESE RESERVES.
AND ONE OF THE THINGS THAT WE'VE BEEN TALKING ABOUT IS, UM, YOU KNOW, OBVIOUSLY NOT TO, WE'VE GOT SOME THINGS COMING UP.
WE'VE GOT SOME GRANTS AND SOME MAT AND THAT HOPES IF WE GET SOME GRANTS, WE WE'LL NEED MONEY FOR THAT.
BUT ONE OF THE THINGS WE'RE, WE'RE LOOKING AT IS TRYING TO, IS COMING UP WITH A TIMEFRAME AND A MONTHLY AMOUNT THAT WE START SETTING ASIDE FOR, FOR THIS SPECIFIC RESERVE, WHICH WILL BE ABOVE AND BEYOND, YOU KNOW, WITH AS, AS MARCUS SAID, UP IN NEW YORK AT THE, AT THE TRUSTEE.
SO ONE OF THE THINGS WE'RE, WE'RE TOYING WITH OR FIGURING OUT ON HOW LONG DO WE TAKE TO FUND THOSE RESERVES, UM, WITHOUT AFFECTING OPERATIONS TOO BADLY.
AND ONE OF THE THINGS WE'VE LOOKED AT IS 24 MONTHS, 18 MONTHS, UM, AS SHORT AS 12 MONTHS, UH, TO START FUNDING THIS 19 MILLION.
NOW WE HAVE IT THERE, WE CAN SET IT ALL ASIDE, BUT THEN ALL OF A SUDDEN, THEN WE HAVE NO CASH TO DO OTHER PROJECTS, OTHER THINGS THAT WE'RE, WE
[00:35:01]
KNOW WE'RE GONNA NEED TO DO.AND SO ONE OF THE THINGS THAT WE TALKED ABOUT WAS MAYBE A, MAYBE AN 18 MONTH PERIOD WHERE WE START SETTING ASIDE, YOU KNOW, ROUGHLY OVER A MILLION DOLLARS A MONTH INTO A RESERVE ACCOUNT.
SO IT DOESN'T, IT DOESN'T HANDCUFF US FROM AN OPERATIONAL STANDPOINT, BUT THEN IT ALLOWS US TO GET TO THIS AMOUNT, AND THEN WE GET TO THIS, YOU KNOW, ROUGHLY 20 MILLION.
THEN, YOU KNOW, WE WILL FUND THAT ON A MONTHLY BASIS FOR THE NEXT 18 MONTHS, SAY, AND AT, YOU KNOW, A LITTLE OVER A MILLION A MONTH UNTIL WE GET TO THAT NUMBER.
AND THEN, THEN THAT'LL BE DONE.
BUT HERE AGAIN, AT THE SAME TIME, YOU'VE SEEN HOW MUCH WE'RE CASH FLOWING ON A MONTHLY BASIS THEN, SO WE'LL STILL BE ABLE TO HANDLE THIS RESERVE.
UM, WHERE OBVIOUSLY THE, THE, THE BIG PICTURE IS WE'RE FUNDING OUR DEBT SERVICE RESERVES, UM, AS WE GO.
SO THE BIG PICTURE AREA IS, IS WHAT PROJECTS WE'RE GONNA BE COMING UP WITH SOON AND THE FACT THAT WE ARE GONNA NEED MONEY TO DO THAT.
AND AS WE'VE DONE, SINCE I'VE BEEN HERE FOR EIGHT YEARS, WE'VE FUNDED EVERYTHING OUT OF OPERATIONS ON A NON SYSTEMATIC PLAN.
SO WHAT WE'RE, WHAT WE'RE PROPOSING HERE IS, IS, UM, OVER AN 18 MONTH PERIOD, WE FUND THIS RESERVE.
AND SO IT DOESN'T HANDCUFF US IN DOING OTHER PROJECTS AS WE MOVE FORWARD.
TIMING COULDN'T BE MUCH BETTER WITH THE FULLY FUNDING OUR CURRENT CAPEX ALREADY, ALREADY IN THERE.
SO NOW WE DON'T HAVE ANY UNTIL WE HAVE SOMETHING ELSE.
SO THE TIMING'S, I THINK PERFECT.
SO, BUT WE, WE HAVE A LOT OF PLANS, RIGHT.
OBVIOUSLY IN THE MASTER PLAN, BUT SHEILA, UM, WERE YOU, WAS YOUR INTENT TO DO THIS FORMALLY OR INFORMALLY AS IN POLICY? THAT'S UP TO THE BOARD.
I MEAN, YOU KNOW, WE, UM, I MEAN I WOULD HATE TO TO, I MEAN, I DON'T SAY HATE TO DO IT, BUT INFORMALLY, UM, YOU, YOU KNOW, UM, IF YOU WOULD GET OUTSIDE OF OUR PLAN THEN IT COULD AFFECT OTHER THINGS THAT WE'VE GOT GOING.
UM, SO, YOU KNOW, IF THE BOARD WANTS TO SET UP A, SET A POLICY TO, TO FOLLOW THIS, THAT'S FINE.
UM, AND WE OBVIOUSLY WILL DO THAT.
UM, BUT YOU KNOW, HERE AGAIN, WE, WE WANT TO GET THIS FUNDED AND WE WANT TO, SO, SO THAT THERE'S NO REAL QUESTION MOVING FORWARD WHAT OUR DOWNSIDE IS FOR ANOTHER YEAR, BASICALLY.
I MEAN, BECAUSE WE'LL BE HANDLING DEBT SERVICES ALREADY COVERED FOR ONE YEAR, BUT AS, AS TONY POINTED OUT, YOU REALLY CAN'T GET BACK.
UNLESS YOU KNOW THERE'S A REAL, HE DIED.
SO HERE, THIS SITUATION GETS US TO, TO THAT SAFETY FACTOR THAT WE'VE BEEN TALKING ABOUT FOR A COUPLE YEARS.
AND SO THIS IS HOW WE, WE, I FEEL IS A, IS A SAFE CERTAIN METHOD TO GET TO THAT FUNDING.
THIS WOULD ALSO SIGNIFICANTLY HELP OUR BOND RATING.
I WOULD, I WOULD LIKE TO JUST SAY, UH, ANTONIO, I, I'M NOT SURE WHAT THE, WHAT THE RIGHT TERMINOLOGY IS, BUT I THINK FORMALIZING IT WOULD BE A BENEFIT AND IT ALSO WOULD ALLOW US TO HOLD THESE FUNDS AS TRUE INTERNALLY RESTRICTED FUNDS THAT ALMOST LIKE A QUASI ENDOWMENT THAT HAS, THAT HAS A BOARD ACTION BEHIND IT.
AND I THINK THAT WOULD, UH, I THINK ONE OF THE THINGS WE TALKED ABOUT, ONE OF ALSO IS BASICALLY, YOU KNOW, MOST PROBABLY UNDERSTAND THE LADDERING EFFECT, RIGHT? SO WHAT WE WOULD LADDER EVERY MONTH WE WOULD HAVE A SEPARATE 12 MONTH PIECE THAT WOULD, UH, UNDER, YOU KNOW, UNDER REGULATIONS, WHAT WE CAN INVEST IN THAT WOULD HAVE MATURITY SET UP ON AN ANNUAL ON FOR A YEAR.
SO ONCE THIS THING'S FULLY FUNDED EVERY YEAR, WE WOULD HAVE AT LEAST A 12TH OF IT THAT BECAME AVAILABLE, RIGHT.
WE, WE CAN LOOK AT THAT ON THE, ON THE, ON THE HOLDING SIDE.
UH, BUT I THINK HAVING IT SET UP AS A FORMAL POLICY AND, AND, AND PUT IT, PUT IT IN A DESIGNATED ACCOUNT THAT IS A UNQUESTIONABLY AN INTERNALLY RESTRICTED ACCOUNT, I THINK WOULD, WOULD BENEFIT US.
WE CAN WORK ON DRAFTING UP A POLICY THAT'S CONSIDERATION.
WE, WE'VE TALKED, YEAH, IT'S BEEN, AS ROGER SAID, IT'S BEEN ONGOING DISCUSSION RIGHT.
THE LAST SEVERAL YEARS ABOUT, OF COURSE, WE'RE IN THE MIDDLE OF, LIKE RICK SAID, IN THE MIDDLE OF A BIG CAPITAL SPEND, BUT NOW WE'RE KIND OF TOWARDS THE END OF THAT.
SO NOW WE HAVE THE OPPORTUNITY.
BUT I THINK IT IS GOOD AND LIKE ROGER SAID, WE DON'T WANNA HANDCUFF OURSELVES, BUT I THINK IT'S ALSO GOOD, I THINK, TO ME, TO DOCUMENT THE PHILOSOPHY AROUND RIGHT.
HAVING THAT CASH RESERVE FOR, FOR US AND FOR FUTURE BOARDS.
I BELIEVE YOU CAN MAKE AN, I THINK WE AS THE BOARD, WE COULD VOTE FOR AN EXCEPTION TO THE PURPOSE ON, ON AN AD HOC BASIS, BUT IF, IF WE HAD A GOOD ENOUGH REASON, I THINK WE COULD SPEND SOME OF THAT MONEY, YOU KNOW, OTHER THAN ON A CALAMITY.
[00:40:01]
WOULD WE AS A FINANCE COMMITTEE MAKE A RECOMMENDATION TO STAFF THEM TO START THAT PROCESS AND MAKE IT OFFICIAL? YEAH, I THINK THAT WOULD BE GOOD ONE.YOU'D LIKE TO MAKE A MOTION, SHEILA? UM, I WOULD ASK THE, UH, LEGAL COUNSEL TO WORK WITH ADMINISTRATION TO, UH, DRAFT A POLICY THAT, UM, EXPRESSES THE INTENT AND THE AMOUNT, UM, OF THIS RESTRICTED FUND AND ALSO INTERNALLY RESTRICTED FUND.
AND ALSO, UM, LET'S BEGIN TO TALK ABOUT HOW WE MIGHT USE IT IF WE REALLY NEEDED IT.
SO YOU HAD TALKED ABOUT HAND CUTTING AND WE CERTAINLY DON'T WANT TO DO THAT, BUT WE DO WANNA HAVE SOME SAFEGUARDS IN THIS, RIGHT? RIGHT.
AND WE COULD PUT THAT IN THE RESOLUTION, WHAT THOSE THINGS ARE.
I Y'ALL BRING THAT HOPEFULLY NEXT MONTH.
YEAH, I THINK SO WE, WE, THIS HAS BEEN ONGOING CONVERSATIONS.
SO WE'VE BEEN HAVING MARK AND I, AND JUST HAVE BEEN HAVING SOME CONVERSATIONS JUST SO WE CAN MAKE SURE WE INCLUDE HOW WE WANT TO FUND THIS INITIALLY.
DO WE WANT TO STAY WITH 18 MONTHS? DO WE WANT TO DO 24 OR DO WE WANT TO DO 12? WHAT'S THE BOARD'S DESIRE THERE? I WOULD LOOK FOR RECOMMENDATION FROM YOU.
YOU GUYS, WHAT MAKES SENSE? I THINK, AGAIN, I THINK WE'RE SETTING A PHILOSOPHY HERE AT OUR, AT OUR STRATEGIC PHILOSOPHY.
SO AT OUR NORMAL OR TODAY'S BURN RATE, EXPLAIN TO ME AGAIN HOW LONG 20 MILLION WILL LAST.
WELL, WE HAVE THREE, WHAT WE'VE DONE IS WE'VE GONE INTO THE HISTORICAL FINANCIALS, RIGHT? AND WE'VE SAID, OKAY, WHAT IF WE HAD NO BUSINESS? RIGHT? RIGHT.
THEN THERE'S ALSO ADJUSTMENT TO YOUR VARIABLE EXPENSES.
SO AS, SO WHEN YOU, IF YOU DON'T HAVE A CRUISE BUSINESS, THEN YOU'VE GOT EXPENSES THAT YOU'RE NOT GONNA INCUR ALSO.
SO THAT'S WHAT WE'VE GONE THROUGH AND MARK IS WE'VE ADJUSTED THAT OUT.
AND SO WHAT YOU'RE SEEING, WHAT YOU'RE SEEING LEFT IN THE, THE 2.6 MILLION IS THAT NET THREE MONTHS.
AND ACTUALLY IF WE JUST ROUND IT TO, TO 20, WE ROUND TO 20 MILLION.
SO WE'RE 70 WEEK, WE COULD SURVIVE FAIRLY COMFORTABLY FOR THREE MONTHS.
PLUS WE'D HAVE A YEAR'S WORTH OF DEBT SERVICE.
AND IN ACTUALITY, ONE OF THE THINGS WE DIDN'T DO, WE DIDN'T, AND WE SAW THIS HAPPEN DURING, UH, DURING, DURING THE NO SALE ORDER, WE HAD ADDITIONAL LAY SHIPS IN, WE DID NOT PROJECT HAVING ADDITIONAL LAY SHIPS.
SO WE'RE TAKING STILL REVENUE IN THERE FROM, WE'RE TAKING THE REVENUE THAT WE BUDGETED TO RELAY AND CARGO, UH, AND BASED ON HISTORICAL INFORMATION AND WHAT WE HAVE BUDGETED TO COME UP WITH THE, UH, 90 DAY BURN.
SO IF Y'ALL WILL BRING THAT BACK TO THE NEXT MEETING, WE CAN START THE PROCESS OF FORMALIZING.
SHEILA, I'D JUST LIKE TO SAY THIS HAS BEEN A REALLY LONG TIME COMING.
IT'S ONE OF THE FIRST CONVERSATIONS YOU AND I HAD BEFORE I WAS EVEN ON THE BOARD.
FOR US IT'S REALLY, REALLY A GOOD MOVE FORWARD.
WELL, WE WANT TO LET SETTLE LITERALLY SAW THIS.
IT'S GOT A LOT OF SAW DUSTERS.
I'LL JUST SAY, AND FOR JOHN PAUL, WE HAD A REALLY GOOD REAL LIFE EXAMPLE OF WHAT HAPPENS IF WE LOSE CREW.
YOU KNOW, 70% OF WHAT HAPPENS IF WE LOSE CREWS AND WE, WE 18 MONTHS AND WE WERE ABLE WITH ADDITIONAL LAY DOCKAGE, WE WERE ABLE TO KEEP THE LIGHTS ON, NOT LAY PEOPLE OFF, PAY THE BILLS AND NOT REALLY GET A NEGATIVE CASH FLOW SITUATION.
SO WE, WE DO HAVE EXPERIENCE OF WHAT THAT LOOKS LIKE, BUT I THINK, YOU KNOW, LIKE SHEILA SAID, WE'VE BEEN TALKING ABOUT THIS FOR, YOU KNOW, PHILOSOPHICALLY FOR A WHILE ABOUT WHAT, YOU KNOW, TRYING TO FORMAL, I MEAN WE'VE HAD TO KIND OF INTENT, BUT THE FORMALIZING THAT, BUT I THINK NOW IS A REALLY GOOD TIME TO, TO BRING THAT TO A CLOSE, IF I UNDERSTAND THAT RIGHT.
THAT'S NINE DAYS OF EXPENSES TO 2 MILLION AND THEN 12 MONTHS OF DEBT SERVICE, DEBT SERVICE, DEBT SERVICE.
AND, AND I GUESS WHEN YOU LOOK AT IT, REALLY WHEN YOU DIG DOWN INTO IT, YOU'RE, AS MARK HAD MENTIONED EARLIER, YOU'RE, YOU'RE PLAYING, YOU KNOW, YOU'RE ONLY PAYING INTEREST ONCE A YEAR AND YOU'RE PAYING PRINCIPAL AND INTEREST A YEAR.
SO THERE'S A TIMING IN THERE ALSO, WHEN YOU REALLY WOULD HAVE TO COME OUT OF POCKET ON THAT 19 MILLION WE PAY, WE DO AN INTEREST PAYMENT FEBRUARY 1ST, INTEREST IN PRINCIPLE AUGUST 1ST.
COURT WAS ABLE TO CASH FLOW DURING COVID, BUT THAT WAS BEFORE THE 23 AND 24 BOND ISSUES.
BUT WE DO HAVE, WE DO HAVE SOME PRIME THE WORDINGS IN WITH ON THE BOND PAYMENT FROM ON TERMINAL 16.
WE DO HAVE, THERE'S SOME SYSTEM
[00:45:01]
CAPITAL COST.THERE'S STILL SOME MONEY THAT FLOW FROM THE CRUISE COMPANIES EVEN THOUGH THEY'RE NOT SALE.
AND WE, AND, AND TONY AND I, UH, PUT THE LANGUAGE IN THERE SO THAT IF, IF THAT EVENT DOES HAPPEN, THEN THERE'S A MECHANISM THAT TRIGGERS SO THAT, YOU KNOW, THERE, THERE MAY BE, I THINK IN ONE CONTRACT IT'S LIKE, YOU KNOW, THERE'S A THREE MONTHS HIATUS.
AND THEN IT GETS PRORATED BACK OVER THE YEAH.
SO WE DON'T EVER LOSE ANYTHING BECAUSE WE STILL HAVE TEST SERVICES.
AND THAT WAS THE IDEA BEHIND THAT.
YOU GUYS, YOU GUYS DID A GOOD JOB OF MAKING SURE IF SOMETHING, BECAUSE WE, WE HAD THIS EXPERIENCE OF COVID, SO, BUT WHAT HAPPENS, AND YOU GUYS BUILT THAT INTO THE CONTRACT THAT WE STILL KIND, WELL THIS IS A, THIS IS AN ISSUE FOR SURE IS AN ISSUE THAT RIGHT.
SO EVERY CONTRACT YOU LOOK AT, THERE'S ALWAYS, IF YOU DON'T SAY IT, THEY'RE GONNA SAY IT HEAVILY NEGOTIATED NOW.
BEFORE IT GOT THEORETICAL NOW.
UM, THE, UM, MARK, UH, WERE YOU GONNA GO OVER THE CAPITAL, THE MASTER PLAN SCHEDULE IF, I MEAN, I'M NOT SAYING YOU HAVE TO, BUT IS THERE ANY CHANGES THAT YOU WANNA POINT OUT TO THIS? THERE WERE NO MAJOR CHANGES.
WHAT WE DID DO, WE DID MOVE, THERE WERE A COUPLE THINGS THAT GOT MOVED.
WE ADJUSTED THE TIMING ON YOU AWARE THAT MARKED IT IS UNDER THE FIRST TAB NINE.
WE DID, WE DID MAKE TIMING CHANGES.
YOU WANT HIGHLIGHT THOSE? OKAY.
THE FIRST CHANGE WE DID IS RELOCATION OF THE POLICE DEPARTMENT.
WE PUSHED THAT OUT AND THE 28TH TO MORE ALIGNED WHEN, WHEN WE EXPECT TO BE BUILDING OFFICES.
UM, SO ONE TIME WE TALKED ABOUT DOING SOMETHING ACROSS THE STREET POLICE OFFICER, THAT'S NOT REALLY FEASIBLE, UM, ON, UH, THE SL BILL.
WE PRETTY MUCH HAVE WRAPPED THAT UP.
WE'VE GOT NOW WE'VE GOT PAYMENTS INTO PAYMENT REQUEST IN FOR THAT.
UM, NOT, NOT THAT WE'RE GONNA GET MONEY BACK, BUT IT'S PENDING
THE, UH, HERE 39 41 TECH STOP, UH, WE ADJUSTED THE AMOUNT THAT'S LEFT REMAINING IN, IN GRANT FUNDS THERE.
UH, SO THAT'S JUST TRUING UP THE ACTUALS.
THEN WE GO OVER TO THE, TO, UH, NEXT CHANGE IS CP PP FOUR C-I-P-E-P FOUR.
AND THAT'S, UH, UH, CVP EQUIPMENT.
WE STILL HAVE, WE'VE GOT THAT ADJUSTED TO 229,000.
THAT'S, UM, CV YOU KNOW, TRUSTING THE BOARD PRO STUFF.
THAT'S, THAT'S MONEY WE STILL HAVE NOT BEEN BILLED ON.
WE'RE ESTIMATING WHAT, WHAT THOSE COSTS WOULD BE.
AND IT'S ALL MOSTLY, UM, COMPUTER COSTS.
ARE THOSE IS THE EQUIPMENT HERE THOUGH? EQUIPMENT? YEAH.
WE'RE, WE'RE COMPLETING THE EXPRESS LOT NOW THAT WE, WE'VE FINISHED THE DEMOLITION, SO THAT'S 1.6 MILLION IS BEEN SITTING OUT THERE FOR A WHILE.
AND THEN THE RIDER, UH, 37, THAT'S THE 20TH TO 23RD PART OF OPI.
THAT'S 1.6 MILLION THAT WE'VE, UH, ADJUSTED.
AND THEN WE GET DOWN HERE TO WP.
THE NEXT PAGE IS WP 13 AND WP 14, WHICH ARE, UM, SLIP FILL, UH, PIER 38, SLIP FILL AND 2 39 AND 41 AND IMPROVEMENTS.
SO WE'RE, WE'RE WRAPPING THOSE PROJECTS UP.
UM, ISN'T THERE USUALLY AN ITEM, AND I MAY BE SLEEPING THROUGH THIS, DON'T WE USUALLY AS THE FINANCE COMMITTEE APPROVE A RECOMMENDATION TO THE BOARD REGARDING THE ITEMS
[00:50:02]
THAT YOU WANT? IS IT ON HERE? YES.THE APPROVAL OF THE CHANGES? YES.
WELL, YOU ALL THE REPORTS, IT'S, IT'S PART OF THE CONSENT AGENDA.
ITEM IS DOCUMENT I, SO IT'S, IT IS PART OF THE, UH, WHEN YOU APPROVE THE, UH, CONSENT AGENDA ITEMS, IT, IT IS INCLUDED IN THERE.
SO I DON'T HAVE AN ITEM PAGE, BUT I THINK YEAH, WE SAID THIS IS OUR WAY OF WHATEVER CHANGES YOU HAVE IN THE CAPITAL UNDER D BUDGETS AND SPENDING OPPORTUNITY.
THE LAST ONE, MASTER PLAN CAPITAL STATE.
SO I, WHAT I'M NOT CLEAR ON, AND I'LL ASK COUNSEL ABOUT THIS.
DO WE NEED TO MAKE ANY KIND OF ACT, DO WE NEED TO DO ANY KIND OF ACTION ON THE CONSENT AGENDA? CONSENT AGENDA? MAYBE HE'S MAKE A RECOMMENDATION BOARD.
YEAH, I'M, I'M MAKING AN APPROVAL.
I MAKE A MOTION THAT WE APPROVE THE CONSENT.
SO, ALL IN FAVOR? IS THERE ANY OTHER BUSINESS WE NEED TO TAKE CARE OF?
[E. COMMENTS FROM THE FINANCE COMMITTEE MEMBERS]
ANY COMMENTS FROM THE FINANCE COMMITTEE MEMBERS? WELCOME BACK.[F. SET DATE OF NEXT MEETING, TIME, AND LOCATION]
THE THE NEXT MEETING IS SET FOR AUGUST 25TH.THAT SEEMS LIKE A LONG TIME OFF.
AND IF THERE'S NOTHING ELSE I WILL ADJOURN.