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Good morning. If you'll find your seats,

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I found a new button that really does work. Everyone gets a little quiet there.

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This is not American Airlines. This is the Port of Corpus Christi. Good morning, everybody. We'll get started this morning. We'll call this meeting to order. First, this morning, we will have a safety briefing. Good morning.

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Good morning, everyone. Welcome to the Solomon Ortiz Center, Port Commission meeting. In case of any evacuation,

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The primary egress route will be out to double doors toward the RT's parking lot.

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The assembly point will be across the street in the northeast corner.

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If a shelter in place is ordered, please remain in the building and wait further instructions from the police department.

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If there is an active shooter,

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know your area and be prepared to run, hide or fight.

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In case of an emergency, I need someone willing to dial 911.

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The AED and first aid kit are located at the front desk.

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someone who's willing to go get those, same.

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Participant, willing and able to do CPR.

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Fire extinguisher located throughout the building mounted

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on the wall, and again, if the shelter in places ordered,

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remain in the building in the police department

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will tell you what to do.

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Thank you.

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Thank you, Officer Bender.

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This morning, if you'll please stand Commissioner Michael Hunter

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will leave the pledge of allegiance.

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And if you'll remain standing for the invocation

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by Rabbi Gabrielle Cohn, Missioner Hunter,

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Rabbi Gabrielle Cohn.

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Good morning.

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Can you all hear me?

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Okay, wonderful.

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Elohana, bellow.

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Hey, have a tainu, beemotainu, are God and God of our ancestors.

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Bless this port and all who work here.

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All who pass through it and all who benefit from its bounty.

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Source of all life guide our leaders with wisdom and righteousness.

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As the prophet Isaiah teaches, make justice your measure and righteousness your standard, be a refuge for the vulnerable and a shelter for those in need.

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Strengthen the hearts of those entrusted with leadership, but keep their hearts from heart and aim so that they may use their influence and authority to speak truth, to act with integrity, and to pursue justice.

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May all who live and work in this port area share in its bounty, enjoy its freedoms, and be protected by its laws.

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May the city blessed by the waters that surround it use its power and prosperity to be a voice for justice, peace, and equality for all who dwell upon this earth.

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Give us the strength and courage to be bold in our actions and deep in our compassion, to know

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when we must listen and when we must act, to uproot bigotry and tolerance, misogyny,

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racism, discrimination, and violence in all their forms. Help us to celebrate the many faces

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of God reflected in the wondrous diversity of humanity. Teach us to welcome the stranger and the

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opportunity and possibility here as people have done on these shores since long before this nation

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was born. As the prophet almost proclaimed let justice swell up like waters and righteousness

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like a mighty stream. Help us to recognize the blessings in our lives and never to take them

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strength in us when we are afraid. Help us channel our anger so that it becomes a force for

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righteous action. Help us feel our anxiety so that we do not become numb to the suffering

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of others. Make us generous with one another so that we may raise each other up. Make us humble in our

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fear remembering that while we may feel vulnerable, there are always others who are still more vulnerable.

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and that is our sacred responsibility to stand with them.

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Help us to taste the sweetness of liberty,

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without taking it for granted.

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May we honor the freedoms one through the courage

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and sacrifice of generations before us,

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and may we do our part to protect, heal.

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Local and nourish our democracy for those who will come after us. Bless this port, its workers and leaders, its neighbors and partners, and all who depend upon its success. May the one who causes peace to reign in the heavens, bring peace to corpus Christi, peace to our port, peace to our leaders, and peace to each and every one of us. Can you hear our own, may this be God's will, and together we say,

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on then. Thank you, Rabbi Cone.

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Item number five, are there any conflict of interest

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candidates need to be received? Seeing none, we'll move to minutes. Approval of the

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minutes from the July 21st, 2026 meeting to have a motion.

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The second person second I heard. All those opposed? All those opposed?

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All those

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apologize. Item number seven is public comment. Again, each speaker is limited to three minutes.

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First up is Mr. Terry Mills.

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Good morning. I'll be brief. Can't can you come forward for just a moment please?

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This past year, the poor sponsored was one of the sponsors for our annual health care that was

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held at the American Bank Center. Excuse me, the healer said it. Okay, I still don't want to get you

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Because I said before, a thousand years like the rest of us, and so it's going to take some time.

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But anyhow, you know, the positive providers, we're able to bring together a lot of their medical providers.

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There's a lot of individuals who came forward for the help here.

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Don't have insurance.

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Don't have this.

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Don't have that.

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But the concept.

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What you did.

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You're able to.

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We're able to have it.

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Awesome.

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This right here.

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This is one of all of us signature medallions that we don't give out on special occasions.

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And because you checked all the boxes and stuff, we wanted to give you what the clients that we give that we serve as a state school.

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Excuse me. Corporal's pretty state support, live in Serena. I'm using San State School along with the group homes.

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This is a thank you from them.

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to you. And so this

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is a, okay, this is not a commit. It's glass. So you need to be very careful.

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I'm telling you straight up, because once I hand it to you, drop it.

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So because sweet thing, the fourth is a diamond in the community, a beacon for everyone to see.

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I work past it this way, but I'm going to drop it. And so anyway, so I just said,

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Thank you so much for the generosity of appreciation.

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So if we're strong, and the volunteers

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you guys sent up this, this is up bags

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for the Christmas Christmas, sorry.

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But the skills of lives was just over the top.

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And we just want to say thank you.

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So I'm going to hand this to you.

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And so thank you again.

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We appreciate you.

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And so I'm going to put this back in here.

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That's a good one.

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I took it right at you.

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And what does the key work today?

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No, come on.

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Come on.

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I'm going to help you.

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Please thank you.

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No, no.

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Blas.

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Oh, Blas.

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I will take care of you, Cara.

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It's actually great that you put it back in there

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as my wife would tell you I would pretend to drop it,

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which is a bad idea.

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So you won't put this in?

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Yeah, that's up to you.

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Thank you very much, Jen.

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You're welcome.

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I don't know what it's like.

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I don't know if I'll take off my glasses.

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Can't let's not pass off that time to your wife today.

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Thank you, Mr. Mills.

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Next up is just a speaker for public comment.

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as myra alanese miscellanese.

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Good morning. My name is Myra alanese,

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I'm with Concerned Citizens of Robsdown in Kalawan.

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The poor provides the infrastructure that supports industrial growth

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in our region, but it also funds CCREDC and RADC.

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Organizations that were instrumental in bringing no-wases green ammonia

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a benign clean hydrogen project to a site between two established communities

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Just breathe from hope.

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From schools and parks. Families choose communities for safety, quality of life, and the environment in which they wish to raise their children, not next to heavy industrial operations.

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While the poor may not control every private development, it's funding of the economic development and the infrastructure gives it influence.

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The poor should use that influence to encourage CCREDC and RADC to promote responsible site selection

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and direct heavy industry into compatible industrial use areas, not in the established residential communities.

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There are locations where this development could occur, yet industry continues to choose sites that are most economical and convenient to them,

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while established residents are left to bear the industrial consequences.

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I respectfully ask the poor commissioners to support an approach that encourages CCREDC and RADC to promote responsible site selection.

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One that recognizes the economic development should not come at the expense of established communities.

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There are other locations where industries can grow with it without placing homes, families, parks and schools in the shadows of heavy industrial facilities.

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Our community should not have to pay for the price of the port's success.

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We are paying the price.

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Thank you.

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Thank you, missollonies.

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Next we'll move to item number eight committee reports.

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First on deck this morning is Commissioner West Hoskins with the audit report.

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Thank you, Mr Chairman.

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We met this past week.

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And so we reviewed the ports self-insured health plan, which I would say is very healthy.

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We received a presentation on our investment report, which is also healthy.

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We reviewed the financial report of the port, which is healthy.

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And we took a look at the P.A. New Orleans.

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We approved some travel there for the APA convention.

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and we had a discussion on pre-trival requests for

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report to mission, which was approved.

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We reviewed the P&D fund and we also are looking

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at the budget process starting now.

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So we have several meetings already scheduled for the budget

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and we presenting that to the commission.

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We looked at all person's orders growing 50 and 100,000.

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And we looked at executive leadership and commission

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travel and expense reports and looked at a current.

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Thank you Chairman Hoskins for that report. Next is Chairman Long Range Planning, Tony Lomantia,

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for Long Range Planning Committee report.

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Our meeting we started with an energy market update.

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It was kind of a crazy world there in energy.

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Got some deep dive into what we think might happen,

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but it's obviously a little bit of a moving target.

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We had a wonderful presentation on the Inner Harbor area

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development plan. We looked at the timing and the needs that will happen over the next

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call it five years with the best light I've ever seen can't really good slide that somebody

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put in there and next we discussed New England rail terminal design contract so those are

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going to be you'll see those in the next couple meetings for that design and that's all we did.

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Thank you.

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Thank you, Chairman Lomantia and Chairman of Ag, Chairman Petradia, believe there's, was there

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meeting the smoke?

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No, we did not meet.

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Thank you.

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And just to confirm as well, Chairman, our security is Chairman Hoskins.

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We also did not meet.

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Thank you.

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Just wanted to confirm.

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We'll move on to our presentations, first, as item 9A, is a presentation for the Corporate

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the independent school district and Iran's

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past high school with the Port of Corpus Christi

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Education grants. Ms. Bailey.

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There you go. Good morning.

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Today we are honored to recognize the recipients of our

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2026 Port of Corpus Christi Education grant program.

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For those of you who are not familiar with this program,

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each year the Port Awards funding for high impact

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stem initiatives that expand education opportunities and really strengthen workforce readiness

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across the Coastal Bend region.

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This year we had two outstanding projects that really strongly aligned with those goals,

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so rather than struggle with choosing one, we are proud to award $200,000 grants this morning.

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First is Corpus Christi ISD, who will use its funding to establish a STEM innovation lab at

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held in place elementary, Martin Middle School, and Veterans Memorial High School.

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Creating a pathway for students to explore engineering, robotics, computer-ated design, and emerging

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technologies.

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I'd like to give them an applause, and then we're going to ask them to come up here in just a

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bit.

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We have several individuals in our audience from the leadership of Fortress Christie Independent

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School District.

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And second, is a Ranzis Pass High School, a Ranzis Pass is going to launch a process

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technology dual enrollment program with Delmar College, allowing students to earn college credit

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while gaining technological training connected to industry, manufacturing, energy, and maritime

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careers. And so while these two programs are both different, they share the same goal in creating

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meaningful opportunities for students and preparing the next generation for the careers at support

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are moving economy here in the Coastal Ben. We're so proud to invest in these two programs

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and congratulate both Corpus Christi ISD and Naranzis Pass ISD. So chairman and commissioners

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I'd like to ask for you to stand and then I'm going to invite each of our respective districts

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to come up and take a photo. So we've got CC ISD her first. Come on up. Thank you.

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Kent. And Omar

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can you jump into this photo also. And Amy and Emily also in the photo please.

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Thank you also

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much. Congratulations.

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Don't go far. Okay.

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And now our partners at Iran's past high school.

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Thank you commissioners for allowing us the opportunity to partner with these educational

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partners that allow us to then create systems that help our customers to ensure that they

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have the workforce they need as they continue to progress in the Coastal Bend.

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Thank you.

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Thank you, Rosara.

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Next, we have a presentation from Al Ariaola, the President and CEO of the United

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Corpus Christi Chamber of Commerce, good morning, Mr. Ariaola.

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Got it.

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There we go.

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There you go.

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My first time here in the new days.

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Thank you, Mr. Chairman. Good morning, commissioners.

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I'm here on behalf of a, excuse me, I'm a request of staff.

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To give you a mid-year report, frankly, they actually asked me to be here last month.

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We were full of some activities that I'm happy to report on today that I will be sharing.

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Is this what I usually use or is our?

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I just want to introduce you to our officers for 26, our chair of the Board is Miss Anna Aldridge.

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We're lucky that she is also serving as the CCREC chair, and I'm also joined by our CEO of the EDC.

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Mr. Chairman, you also see our officers as such.

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They are also our foundation board.

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Our full board members, I do believe, is a good composition of our businesses, both large

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and small, and also is a good breakdown of the demographics that represent Corpus Christi

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quite well.

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This was actually not by design.

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This was just the way the nomination processes were.

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Our mission and vision, just central to that, is if I could just refer to our court.

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We collaborate and advocate to help our members grow and I'll get into some of the parts of our mission vision.

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Every year our Board of Directors does evaluate some core impact goals that we intend to make in the community that ties to our mission

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vision. This year, once again, workforce readiness did rise to the top infrastructure advocacy community retention support and mission security assurance.

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Workforce readiness, I think we all know what that means, in infrastructure advocacy, bringing our infrastructure concerns to the state, local and federal levels.

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Community retention, trying to retain the talent that is in corporate secrecy in our own residents in the market.

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And then certainly the military is a pillar of our economy and something that we are very mindful of every day.

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So, how do we accomplish our mission and vision?

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These are the programs of your United Corpus Christi Chamber of Commerce that do help us articulate and show what our goals are.

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They are ran and managed to do our committees, which are very volunteer based, both on our Chamber and Foundation sites.

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I do want to emphasize that we are a membership based organization currently at the year mark.

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We are at 92 plus members.

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We are retaining 85% with respect to industry averages

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is very good.

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Our market penetration is at 8%

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and we're annually having trying to hit a goal of 10%.

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You do back to our board of directors.

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Our membership composition, as you can see,

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is very diverse.

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There is no one particular subset of businesses

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that is telling us what to do.

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We are the sum of all our parts.

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Events we do have quite a few, as you notice,

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throughout the community pretty much two months.

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We do manage over 7,000 unique registrations.

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We are proud to partner often with the port and industry

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and procurement workshops.

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We've done two.

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We are exploring the opportunities to do more.

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We have had an estimated economic impact to small businesses in the amount of

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$4.5 million.

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This is big business doing business with small business.

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Recently, and I wanted to also acknowledge your chief of external affairs, Mr. Omar,

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or see it join us on an exploratory delegation to Veracruz. Recently, the Chamber of Commerce

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has assumed responsibility of the sister city international program, and our intention

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when doing so was to have more economic-based conversations. This exploratory delegation trip

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to Veracruz was in this face of international trade. As y'all well know, or might not know,

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the port of Veracruz is one of the oldest ports in the Americas and we do see immense opportunities

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for connections to port to port. Again, Omar is the one that guided those very, what

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would we say, intentional conversations that we look, that we anticipate some good strong

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relationships are being built. Some photos here we are hanging out with the mayor of Veracruz

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and also the Veracruz Economic, the state of Veracruz Economic Development Director did host this

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large-round table where again we did explore these conversations. We did make also a visit to the

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port and their customs facilities. Back to the intention of commerce and trade, we did shape

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our agenda and trip to have more of a culinary lens so that we could articulate again the economic

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impact of bringing those Dell Mar college culinary students back home with an expanded experience

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and new relationships as well.

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And then we also welcome, this is the traditional program that it was done annually.

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We welcome some international students from asian and from Japan.

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They did visit your port facilities and some other economic assets in the community.

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Just to give you an example, the long-lasting impacts of this when we did visit over their

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Japan, one of their current council members was one of these students once upon a time.

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CBDDC, as we well know, we annually engaged in these advocacy efforts.

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This year, we did complete the trip in June.

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We strictly advocated for water infrastructure and we are proud that some NDA modifications

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with definitely some good work of the South Texas military task force as well, Mr. West

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in the audience too. I mean, on the question, getting some, some great

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headway in those conversations with respect to the military. How many do you

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have time? Okay. And it goes to that senior leadership, of course,

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Christie, the third oldest leadership program in the nation, the second oldest

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in Texas, we are proud that we already have over 1,500 grads that have contributed

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to the local leadership in our community. This year we are, again, back to

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just programs that give back to the community. And this is in the wellness

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space.

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Our annual conquer the coast race.

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We are looking forward to it over the new bridge once again.

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We are shooting for a goal of 1,500 registration, so this is a benefit that continues

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to grow annually and we expect an economic impact of over a million dollars.

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On Monday day, this is our youth entrepreneurship program back to community retention. We have, if you'll see, the growth, this is something we're very proud of. In 2023, we had roughly about 100 kids register. Right now we are at 1500 kids that are participating in this program, so that's a growth of over 1,400% and we have over 96 that plan to continue to participate. So we only expect this program to grow. And again, this is in the financial literacy space, Youth Entrepreneurspace.

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I mentioned the task force, thank you, and thank you to the port for your support with your support.

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We were able to purchase some Coast Guard teachers to celebrate the second annual designation of being a Coast Guard city.

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I do have some shirts for the commission as well that will lead me behind.

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And so thank you for that.

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It was a nice community celebration that for them, it's also a great morale builder.

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You should see them west also Mr. Hoskins, thank you for your donation of the canopy for over the play field.

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It was a nice time, they had a really great time at Waterbird Reveal.

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As you all well know, to the Chamber of Commerce does purchase the wings of gold for

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the weaning ceremonies at Naval Air Station Corpus Christi.

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We are proud that over 400 pilots, we were able to distribute that to over 400 pilots last

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year and we are on pace to do the same this year.

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In Doc welcomes as well, we welcome the student pilots every year annually, we welcome over

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a thousand pilots.

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want to say welcome, we do indoctrinate them with community assets, we give them, you know,

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visitors' guides, different little giveaways and takeaways.

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And just in closing just communications,

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we do obviously monitor what has been effective,

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how well are we communicating and where is our

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communication being consumed. We are on well on track on our website to be our views from last year.

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Currently, we are at 187,000 last year, the full year, excuse me, we are at 121, last year, the full year alone, we are 187,000.

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We have over 15,000 unique email subscriptions and that little map right there is just kind of our podcast downloads where they're coming from.

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And you can see that we are also gathering an international audience at this point as well.

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I mentioned our podcast, it was once upon a time just me on a microphone and now we have four

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different segments that are trying to emphasize some of the things for trying to meet

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the community and focus is a membership based podcast. The dishes focusing on local restaurants

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the next way is young generation, podcasts, and the briefs are advocacy and policy discussions.

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A value add that we try to offer to our members with their dues that they pay every year is just

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small digital business card. It's something innovative that's not in the chamber world. It's a

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business service that we offer. We would distribute over 1500 to dates and that has a retail

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value of over 550 bucks. Again, that's just a little value for our members. We have been working

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on a lot of projects that we're going to be unveiling with the coming months, but this one we will

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be unveiling here in the coming weeks. And it's our economic pulse. It's going to be living on our

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website. It's simply a snapshot of some of the higher benchmarks that we're measuring in the community.

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We do welcome our partners to collaborate on any of the data that they might see,

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need to be addressed or adjusted.

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But for the most part, this is a very AI smartly driven technology that sources data

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from definitive and trusted touch points.

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And I hope I did that in seven minutes, and so I want to thank you, Commission, for your investment in your Chamber of Commerce, as I always say, United starts with you, and thank you for being part of our Chamber of Commerce.

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Thank you, Al.

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Commissioner, would you like to say anything?

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I know you're on the board representing the board.

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Yes, the chamber, on the board, I think a couple years now, and it has really done great under Al. Now, I always tell you that you're one of the best we've ever had.

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Thank you. Thanks for all the hard work, all of the forward thinking moves that you are making

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to make us better, appreciate you.

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Thank you. Any questions for Alan from the Commission? Seeing none. Thank you, Mr. Aroyo.

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Thanks, sir.

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Next, we'll move on to presentation on marketing, branding, international business developments,

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or Chief of External Affairs, Omar Garcia.

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You guys hear me?

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Good morning, Chairman. Get in commissioners.

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Lisa and I are here to provide you with an update on our market initiatives.

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Our current marketing revolves around the energy port of the Americas.

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I think it's safe to say we've achieved that distinction.

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Over the last decade, poor commissioners and staff have made the right investments to ensure

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Pipelines from the Permian Basics.

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We're appointed in our direction. These pipelines could have been connected to the Houston market, but staff

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worked very hard to graduate our channel to 54 feet and we took an aggressive marketing campaign to ensure

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crude volumes flow to the Port of Corpus Christi. Whether it's crude, LNG or refined products, the

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old and gas industry will remain the backbone of our economy and a source of growth and a source of growth

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for the port. However, with containers on the horizon and the development of our inland rail

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port, the time has arrived to embark on a new marketing campaign.

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So you see here our current marketing energy port of the Americas. This has been something

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that we've marketed for the last 10 decades and trust me it has been extremely effective.

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But when we go to markets where oil and gas is not the center point, for example, very

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Cruz, anywhere in Latin America, South America.

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This message doesn't resonate.

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It just doesn't.

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There's no better example than when Eugene I

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were in Lima, Peru last year.

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And I was given a speech to 300 people.

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That was a difficult 20-minute speech

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because oil and gas didn't resonate.

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LNG, crude, refined products.

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I think I had to make a couple of jokes

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just to keep it going.

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However, with what is on the horizon for the port

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and the opportunity before us on containers,

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the development of the inland port. We have an opportunity to embark on a new marketing strategy that

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I think you will like. It was bench marks by several ports. Lee Center staff did an amazing job coming

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up with this new strategy. So what I have before you is our new marketing descriptor in our brand new tagline.

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So the descriptor is global gateway for energy and innovation and the tagline is never stop moving.

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So you see where you're not departing from energy, it is at the forefront, but innovation allows

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us to talk about different cargos, whether it's containers, more wind terminals, whatever

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the next derivative of oil and gas is hydrogen ammonia, the AI, it allows us room to

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grow and continue to put this port at the forefront of international markets.

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So I hope that you will like that.

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This is something that we presented to the Long Range Planning Committee.

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It was well received and as we continue to roll this out, it's going to be coupled with our new website.

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We have had many, many changes, small changes made to port of CCDOOK.com.

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But the time has come to do a major role, but also with that, I'm going to turn this over to Lisa and a host

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our director of communications and marketing.

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Thank you, Omar.

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As director of communications, I support Omar in these marketing efforts.

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And today I'm here to provide a brief but exciting update on the new website.

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Still to be located at www.portofcc.com.

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Our current site was developed in 2016 by MDR in a above-class firm.

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I'd like to take a moment to recognize,

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Principal, Steven Rybak, and Developer Sarah Anchinets.

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They're here with us today to answer any questions.

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A decade after that origin,

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we identified a need to update and upgrade.

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The new site will replace that legacy site with the modern business focused experience.

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When it comes to web presence, our goal always is to provide an exceptional user experience.

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We want to ensure that our website is ADA compliant and an inclusive environment where all users can easily access forms, services, and contacts.

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Additionally, we wish to highlight port activity initiatives and community impact to affirm the transparency we've committed to.

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We also want to engage stakeholders so that potential partners and collaborators can learn

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about what we do in what we offer, more than that they can find what they need on our

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site.

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And of course there's a revenue generating component to anything we do especially web to that

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end we want to support our executive team and commercial representatives in driving new business.

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We've curated content that authentically and succinctly shows port facilities and capabilities.

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The end results will be a valuable public resource with built-in analytics.

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We have included a sneak preview here of what the aesthetics will look like.

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As you can see, the new site will be themed to match our descriptor and tagline.

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Never stop moving will be featured prominently, and the overall feel will be very kinetic,

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just like the Port of Corpus Christi.

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Technical features will include direct links to Salesforce,

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enabling active lead capture via the sales pages.

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Why? Because we want everything we do to support our internal collaborators in their mission to convert

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interest into new business.

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Notably, the new site will also feature a search option, further enhancing user experience.

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I should note that IT already has worked with our developer to make a few effective and

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noticeable technical upgrades. As you all know, there's quite a bit that goes on behind

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the scenes and we want to thank Brooks team for supporting that effort.

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parallel to what we are doing on the website, our chief Omar has been diligent in his

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action planning towards international marketing. So this seems like a sensible trend.

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Time to transition to Omar so he can tell you a little bit more about that.

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Thank you, Lisa. Thank you for all your hard work. We're really excited about this new website. It's going to be a major, major update.

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With the recent promotion and obviously, well, deserve the beauty talk is out.

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Chief commercial officer in speaking with Kent and to his vision of moving his organization as a commercial port to lead with commercial.

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The time was come was to really to focus on international marketing and international business development.

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We've done an amazing job of building relationships with the Port of Rotterdam, knowing that 25% of

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everything that leaves the Port of Corpus Christi is exported, but there's more than just the

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Port of Rotterdam, and there's no better example than our recent trip to Avaira Cruz.

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I unveiled our new marketing tagline and it was well received knowing that the Port of Avaira Cruz

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and not have a lot of oil and gas. It was more of a commodity-driven Port of Roe Roe and containers.

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One of the first things that they told me at the port of Erich Cruz was, where is your

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refrigerator in the warehouse?

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They export millions of tons of citrus fruit, but instead of taking a two-day trip

448
00:36:08,610 --> 00:36:13,690
via boat to the port of Corpus, they drive 1200 miles to the Port of Loretto, way two to

449
00:36:13,690 --> 00:36:17,490
three days across the border, and then offload the product in the refrigerated warehouse.

450
00:36:18,370 --> 00:36:24,210
So this is an classic opportunity of an opportunity was identified, it'll go now to Eugene

451
00:36:24,210 --> 00:36:26,790
and his staff to figure out there's a commercial opportunity or not.

452
00:36:27,210 --> 00:36:31,750
But there's so many things that we have not been able to do internationally and now is a

453
00:36:31,750 --> 00:36:37,590
time, especially where we find ourselves in this city with the unfortunate negative press

454
00:36:37,590 --> 00:36:40,850
related to water, we at the port have to change the narrative.

455
00:36:41,330 --> 00:36:45,370
So going to the international markets is going to pay dividends down the road for future economic

456
00:36:45,370 --> 00:36:45,730
development.

457
00:36:46,030 --> 00:36:50,110
We may not see it three months from now, six months from now or a year ago, but it will

458
00:36:50,110 --> 00:36:53,190
come because of the reputation of the port of corporate secrecy.

459
00:36:53,190 --> 00:36:59,330
So some of the things the targets will focus on being our national customers, investors, strategic

460
00:36:59,330 --> 00:36:59,990
stakeholders.

461
00:37:00,330 --> 00:37:07,610
There is an untapped resource of leads with government consultants with the consulates,

462
00:37:07,650 --> 00:37:11,670
the consulates are a huge source of potential prospects.

463
00:37:12,130 --> 00:37:15,990
When we go to Rotterdam, the ambassador to the Netherlands will be on the boat.

464
00:37:16,350 --> 00:37:18,750
So we're going to focus on building that relationship with that ambassador.

465
00:37:18,750 --> 00:37:23,510
So we're looking forward to great means and then with the London office that the state of Texas

466
00:37:23,510 --> 00:37:28,890
Establish and London that is going to be a key relationship moving forward as we do have a lot of business coming out of the UK

467
00:37:28,890 --> 00:37:35,050
So as we look towards ramping up international, this is that these next several months will be

468
00:37:35,050 --> 00:37:41,110
Myself and one of my staff members ramping it up bringing into marketing plan and hitting the ground on

469
00:37:41,110 --> 00:37:46,050
27 but there are other targets like I said we will continue that relationship with the Netherlands

470
00:37:46,050 --> 00:37:50,710
but also Singapore, the United Kingdom, France, Italy, and South Korea.

471
00:37:51,070 --> 00:37:55,890
Those countries represent our top 10 largest trading partners, both on the crude and the

472
00:37:55,890 --> 00:37:56,570
LNG side.

473
00:37:56,970 --> 00:38:00,790
And the other thing that is also with international development and will be the policy.

474
00:38:01,350 --> 00:38:05,450
There's so much international policy that it could impact the port following that will also

475
00:38:05,450 --> 00:38:07,210
be a key initiative of this international department.

476
00:38:07,890 --> 00:38:13,170
So with that, I'll entertain any questions that you may have for Lisa and I do have any questions

477
00:38:13,170 --> 00:38:14,890
from the Commissioner Commissioner Hucha.

478
00:38:16,210 --> 00:38:18,370
Oh my god, Omar, that's just awesome and Lisa.

479
00:38:18,690 --> 00:38:19,750
It is really, really good.

480
00:38:19,930 --> 00:38:21,990
You guys have been added for a long time.

481
00:38:22,350 --> 00:38:25,330
And the website where it looks good.

482
00:38:25,490 --> 00:38:27,050
Congratulations, and MDR.

483
00:38:27,350 --> 00:38:27,670
Thank you.

484
00:38:27,870 --> 00:38:28,290
I love to you.

485
00:38:29,490 --> 00:38:30,270
Looks beautiful.

486
00:38:31,070 --> 00:38:32,530
I have one little comment.

487
00:38:33,350 --> 00:38:37,190
I saw the waterway on the homepage.

488
00:38:38,430 --> 00:38:40,710
Do you think we need to add some railways on there?

489
00:38:40,710 --> 00:38:44,330
So we could say we've got it in the middle of it always coming to just think about that.

490
00:38:44,670 --> 00:38:44,730
Absolutely.

491
00:38:44,850 --> 00:38:48,450
I mean, there's going to be a specific section that Eugene, his team are working to market

492
00:38:48,450 --> 00:38:51,570
specifically their own importance so we will definitely ensure that that happens.

493
00:38:52,210 --> 00:38:53,150
I love the tagline.

494
00:38:53,330 --> 00:38:54,630
I mean, never thought moving is beautiful.

495
00:38:55,070 --> 00:38:55,630
Thank you.

496
00:38:55,670 --> 00:38:55,990
Thank you.

497
00:38:56,290 --> 00:38:56,970
Again, that was all Lisa.

498
00:38:57,150 --> 00:38:57,630
Thank you.

499
00:38:57,850 --> 00:38:57,870
Yeah.

500
00:38:57,970 --> 00:38:58,250
Good job.

501
00:39:00,330 --> 00:39:00,570
No.

502
00:39:00,570 --> 00:39:01,290
Great job.

503
00:39:01,490 --> 00:39:02,270
Never stopped moving.

504
00:39:03,370 --> 00:39:05,590
Commissioner Lamuthia calls you at 9 o'clock at night.

505
00:39:05,750 --> 00:39:06,070
You never.

506
00:39:06,370 --> 00:39:06,930
Never stopped.

507
00:39:09,690 --> 00:39:10,490
Excellent job.

508
00:39:10,490 --> 00:39:14,730
I do love the tagline and in sitting here, I think we can all agree that we're becoming

509
00:39:14,730 --> 00:39:16,370
more than just an energy port.

510
00:39:16,550 --> 00:39:18,930
Innovation is a great way to put that together.

511
00:39:19,130 --> 00:39:19,350
Well done.

512
00:39:19,650 --> 00:39:19,890
Thank you.

513
00:39:20,370 --> 00:39:21,850
Thank you.

514
00:39:22,410 --> 00:39:30,630
Next, item first on the open session agenda items for consideration as item 10A approval of the

515
00:39:30,630 --> 00:39:36,370
port of Corpus Christi's Authorities, second quarter financial reports, Cindy Bartolami,

516
00:39:36,610 --> 00:39:37,730
our chief financial officer.

517
00:39:37,910 --> 00:39:38,590
Good morning, Cindy.

518
00:39:38,590 --> 00:39:46,550
Thank you, Chairman Garra. Good morning, commissioners. Staff requests the port commissions approval of the second quarter 2026 financial report.

519
00:39:47,330 --> 00:39:50,390
We're going to go to slide three and take a look at some of our year-to-date highlights.

520
00:39:52,170 --> 00:39:59,950
So the port and its customers, we've moved through six months, 110.3 million tons, which has marked the strongest first.

521
00:40:00,000 --> 00:40:08,520
First half in the Ports history. The second quarter, the Ports customers move 55.8 million tons through the

522
00:40:08,520 --> 00:40:14,880
port, and that also marked the highest quarter, the highest quarter in the Ports history. Our

523
00:40:14,880 --> 00:40:20,580
crude export exports continue to exceed 2.4 million barrels per day, and that's been since March,

524
00:40:20,740 --> 00:40:27,180
and that's the highest monthly levels we've seen in this market. And inbound outbound rail card movements,

525
00:40:27,180 --> 00:40:34,500
they continue to exceed 20, 25, about over all 50 percent. Let's go to slide eight, please.

526
00:40:39,050 --> 00:40:44,230
Now, before we get on to our here-to-date financials, just want to anchor where we stand for the year,

527
00:40:44,430 --> 00:40:49,770
we're tracking ahead of budget on our net income driven by our revenue performance. I did want to

528
00:40:49,770 --> 00:40:54,830
walk us through one variance in full transparency. As I was reviewing the second quarter actuals

529
00:40:54,830 --> 00:41:01,630
against our budget, I did identify a calculation error in our 2026 benefits calculation, specifically

530
00:41:01,630 --> 00:41:09,550
our medical premium. So I did not put enough medical premiums in for the 2026 year. So bringing

531
00:41:09,550 --> 00:41:14,610
this to your attention, just so when we're looking at our financials, the employee services line

532
00:41:14,610 --> 00:41:20,250
for the year through, you'll see the budget. We look unfavorable to budget and I just didn't want

533
00:41:20,250 --> 00:41:27,150
to be misconstrued as, you know, too much headcount or, you know, any issues on salaries or any other employee services.

534
00:41:27,350 --> 00:41:32,450
It is the benefits. It is the benefits line specifically that's driving that.

535
00:41:33,030 --> 00:41:46,950
Separately from that, we do expect at the end of the year when we are doing our annual adjustments based on Gazby pronouncements and rules that we will offset what the benefits miss on the budget line would be.

536
00:41:46,950 --> 00:41:54,150
We don't know the impact of that, and we won't know the impact of what that net will be until the end of the year, but we do expect to

537
00:41:54,910 --> 00:41:58,970
pick off set the benefits adjustment at that time.

538
00:41:59,210 --> 00:42:04,130
So once we get through our year end adjustments, journal entries, reconciling and our audit,

539
00:42:04,250 --> 00:42:09,090
then we would be able to see the full impact of that issue there.

540
00:42:09,230 --> 00:42:11,750
So just wanted to bring that before we looked at the P&L.

541
00:42:12,770 --> 00:42:18,450
So, as we're looking at our year-to-date financials, as I mentioned, our operating revenues are

542
00:42:18,450 --> 00:42:19,370
outperforming.

543
00:42:19,530 --> 00:42:24,810
So we are about 8% ahead of budget for the year on the revenue line, building land and

544
00:42:24,810 --> 00:42:26,570
rental through six months is above.

545
00:42:26,790 --> 00:42:32,150
We do have some MGTs that were built out in the beginning of the first six months.

546
00:42:32,570 --> 00:42:34,010
We straight line our budget.

547
00:42:34,850 --> 00:42:40,550
So, some of the MGTs are more than we had budgeted, but it's also the budget impact

548
00:42:40,550 --> 00:42:46,730
of how we straight line versus when we bill out those NGTs, it's a full bill out at that time.

549
00:42:48,290 --> 00:42:54,170
For operating expenses, we are just about at budget on the operating expense line. We're about

550
00:42:54,170 --> 00:43:00,750
1% unfavorable to our budget through six months. That is directly related to that employee

551
00:43:00,750 --> 00:43:05,970
services issue that I had mentioned. We're still running favorable on other lines, our professional

552
00:43:05,970 --> 00:43:12,170
and contracted services. Through six months we're still a little delayed in the way we're spending

553
00:43:12,170 --> 00:43:19,210
those dollars so you'll see favorability there for now. Our net income still strong. We are ahead

554
00:43:19,210 --> 00:43:25,330
of budget 18 and a half percent and then when we're looking at our investment income and we'll

555
00:43:25,330 --> 00:43:31,810
look at our portfolio next investment income we are we are shy to our budget there but that's the

556
00:43:31,810 --> 00:43:37,170
market adjustment that we did at the end of 2025, which was a pickup at the end of the

557
00:43:37,170 --> 00:43:42,410
year, where we have the mark our investments to what's happening in the market, but then

558
00:43:42,410 --> 00:43:48,330
in January, that reverses out so we actually had a hit of almost $1.8 million to our P&L

559
00:43:48,330 --> 00:43:54,370
right from the beginning, just because of that adjustment. And at the end of the year, we'll

560
00:43:54,370 --> 00:43:59,570
look at the market value again, and we'll do another mark to market, so we'll see if that's

561
00:43:59,570 --> 00:44:03,510
positive or negative depending on, you know, what happens over the next six months.

562
00:44:04,430 --> 00:44:11,890
And then really net income were a pretty strong 10.7% ahead of budget, so happy to take

563
00:44:11,890 --> 00:44:12,650
any questions.

564
00:44:12,670 --> 00:44:16,190
Otherwise, we are asking for approval of the second quarter of financials.

565
00:44:16,470 --> 00:44:21,830
Do we have any questions of commission or agenda who should I have a motion for approval?

566
00:44:21,830 --> 00:44:24,010
I heard a second.

567
00:44:24,370 --> 00:44:26,150
Commissioner Long deal with the second.

568
00:44:27,330 --> 00:44:27,930
All those in favour?

569
00:44:28,230 --> 00:44:28,870
Please say aye.

570
00:44:29,630 --> 00:44:30,670
Any opposed saying aye.

571
00:44:31,330 --> 00:44:31,990
Motion passes.

572
00:44:32,290 --> 00:44:32,730
Great report.

573
00:44:33,050 --> 00:44:33,450
Thank you, Cindy.

574
00:44:33,950 --> 00:44:34,330
Thank you.

575
00:44:34,770 --> 00:44:38,270
Next item on our open session agenda is item 10B.

576
00:44:38,350 --> 00:44:40,190
Approval the quarter quarter corpus christia thaw

577
00:44:40,820 --> 00:44:43,110
Second quarter 26 investments.

578
00:44:43,390 --> 00:44:44,610
Here up on deck again.

579
00:44:45,050 --> 00:44:45,270
All right.

580
00:44:45,450 --> 00:44:47,830
Thank you, chairman and good morning commissioners.

581
00:44:47,830 --> 00:44:52,050
the Seeking Port Commission approval of the second quarter 2026 investment report.

582
00:44:52,510 --> 00:44:56,410
The full report is attached and available for a more detailed review.

583
00:44:56,890 --> 00:44:59,970
The investment report was presented to our audit committee back on August.

584
00:45:00,000 --> 00:45:18,360
This 10th. And normal cadence, before we head on into how beautiful our portfolio looks, I do always like to mention that the port currently has outstanding debt totaling 252 million dollars as of December 31, 2025. So with that, let's go to slide 7, please.

585
00:45:22,350 --> 00:45:32,950
So how we're allocated? If we take a look halfway down the page where we look at our maturity distribution, our short term latter between 1, 0 and 2 years is,

586
00:45:32,950 --> 00:45:38,870
airtight. We have sufficient liquidity in that one to two-year bucket. Our

587
00:45:38,870 --> 00:45:42,970
rates are unrealized game loss even though it's it looks like a loss it's

588
00:45:42,970 --> 00:45:47,070
because our rates are higher than what our investments are and that's one of

589
00:45:47,070 --> 00:45:50,610
those things that we we talk about but we are not going to realize any of

590
00:45:50,610 --> 00:45:57,490
that because we do hold all of our investments to maturity. Let's go to slide eight

591
00:45:57,490 --> 00:46:03,140
So this is our investment portfolio recap.

592
00:46:03,920 --> 00:46:09,580
Our portfolio grew $8.6 million from the first quarter to $335 million.

593
00:46:09,860 --> 00:46:13,100
That's really driven by our new deposits and our reinvestments.

594
00:46:14,220 --> 00:46:17,620
Our investment income for the quarter, about $3.2 million.

595
00:46:18,380 --> 00:46:21,680
We did see that on the financials in the previous presentation.

596
00:46:23,180 --> 00:46:26,160
Unreal, the unrealized position, it did dip $1.3 million.

597
00:46:26,160 --> 00:46:39,120
As I mentioned, it's about a swing of 1.66 million from our 1st quarter gain, normal effective rate changes, it's not a credit loss, our maturity profile length and slightly so are weighted average maturity.

598
00:46:39,280 --> 00:46:47,900
It moved from 1.65 to 1.82 years. It's still short, liquidity friendly, and it's also within our two-year policy.

599
00:46:49,760 --> 00:46:55,080
Credit quality, we still remain really strong, and our allocations we are staying conservative

600
00:46:55,080 --> 00:47:01,620
in that regard. And then the next pages are detailed for our portfolios by investment,

601
00:47:02,380 --> 00:47:07,040
so happy to field any questions, otherwise asking for approval of the second quarter investment

602
00:47:07,040 --> 00:47:07,480
report.

603
00:47:08,040 --> 00:47:10,760
Thank you, Ms. Bernalami. Do we have any questions?

604
00:47:10,760 --> 00:47:13,800
for sending hearing none to have a motion for approval.

605
00:47:14,540 --> 00:47:15,840
Now, first, to our second.

606
00:47:16,720 --> 00:47:20,340
Second, all those in favor, please any discussion.

607
00:47:21,440 --> 00:47:23,400
Hearing none, all those in favor, please say aye.

608
00:47:24,620 --> 00:47:26,460
Any opposition, same sign?

609
00:47:26,760 --> 00:47:27,280
Motion passes.

610
00:47:27,500 --> 00:47:28,020
Thank you, Cindy.

611
00:47:30,320 --> 00:47:33,640
Next is an approval of a memorandum of cooperation

612
00:47:33,640 --> 00:47:37,100
with the U.S. Department of Transportation and Maritime Division.

613
00:47:37,420 --> 00:47:38,360
Jeff, thank you.

614
00:47:39,220 --> 00:47:40,300
Good morning, commissioners.

615
00:47:40,300 --> 00:47:44,780
I'm actually going to speak on the next two items,

616
00:47:44,920 --> 00:47:47,180
we'll need separate actions for both of them, please.

617
00:47:48,040 --> 00:47:49,800
So, you know, just to set the stage here,

618
00:47:51,400 --> 00:47:54,020
and this is a really natural fall on to Omar's comments

619
00:47:54,020 --> 00:47:59,900
about the poor remaining at the nexus between the energy space

620
00:47:59,900 --> 00:48:02,720
and innovation and our commitment, I think,

621
00:48:04,700 --> 00:48:08,260
to infuse innovation in all of our decisions, right?

622
00:48:08,260 --> 00:48:09,060
And everything we pursue.

623
00:48:12,110 --> 00:48:16,930
There's an interesting moment in sort of the broader energy space right now around advanced

624
00:48:16,930 --> 00:48:17,310
nuclear.

625
00:48:17,710 --> 00:48:25,990
In particular, there's interest really at the national international level at the potential

626
00:48:25,990 --> 00:48:28,610
application of advanced nuclear technology in maritime.

627
00:48:29,490 --> 00:48:35,110
Both of the agenda items about which I'd like to speak this morning are unique and timely

628
00:48:35,110 --> 00:48:42,350
opportunities for the poor to do what we do in energy, which is tried to lead by example

629
00:48:42,350 --> 00:48:47,950
and try to be at the forefront, not just among U.S. ports, but internationally when it comes

630
00:48:47,950 --> 00:48:54,830
to energy issues in maritime. So again, two separate memorandah items tend to see in Tendee

631
00:48:54,830 --> 00:48:59,230
and I'd like to walk you through them individually and also maybe take a moment and sort of

632
00:48:59,230 --> 00:49:04,050
set the stage on this topic of advanced nuclear, which I think is very familiar with some, but

633
00:49:04,050 --> 00:49:11,290
very new to others. If we talk about the evolution of nuclear technology over the last 75

634
00:49:11,290 --> 00:49:17,770
years or so, and I'll show some images that correspond to these different generations.

635
00:49:18,510 --> 00:49:22,430
When we talk about advanced nuclear of the modern era, we're really talking about changes

636
00:49:22,430 --> 00:49:32,110
in the way reactors are cooled, and we're talking about changes in pressure. It's almost

637
00:49:32,110 --> 00:49:38,170
shame that we're still calling nuclear of the modern era nuclear it is vision, but it is different

638
00:49:38,170 --> 00:49:44,850
in almost every way. And so, and I'll show you exactly what I mean by that with some images,

639
00:49:46,030 --> 00:49:53,330
but Texas has really emerged as, just as Texas was a leader in the fossil energy space, Texas has

640
00:49:53,330 --> 00:49:58,530
really emerged as a leader in this next generation of nuclear technology. There are a lot of start-up

641
00:49:58,530 --> 00:49:59,950
I have chosen to...

642
00:50:01,940 --> 00:50:11,260
And so we as the energy port of the Americas, but also the preeminent energy port of the Gulf Coast and Texas, find ourselves in sort of a unique opportunity here.

643
00:50:11,980 --> 00:50:24,680
So if we think about, I think this is sort of the prevailing conception of nuclear, early generation generation, one or two large cooling towers, cooled by water, very large plants, large campuses.

644
00:50:24,680 --> 00:50:32,200
What we've seen over the last 40 years is evolution into newer generations, still cool by water,

645
00:50:32,380 --> 00:50:40,440
but with some newer technologies around safety and really what our referters inherently

646
00:50:40,440 --> 00:50:47,200
safe, in other words, plants that are no longer actively cooled, but there are passive safety

647
00:50:47,200 --> 00:50:52,300
mechanisms, so really different physics. And when we talk about generation four, it's again,

648
00:50:52,300 --> 00:50:57,480
It's really wildly different, reactors that are for the most part not cooled by water,

649
00:50:57,700 --> 00:51:02,720
they're about six or seven different types of this generation for reactor technology.

650
00:51:03,980 --> 00:51:11,380
The one in only large format generation for nuclear plant, not a huge surprise here, is in China.

651
00:51:13,040 --> 00:51:21,560
But the real promise of these advances in nuclear technology is not in necessarily the large fixed

652
00:51:21,560 --> 00:51:27,420
plants, but rather in this, which is the potential for modularity.

653
00:51:27,580 --> 00:51:32,340
So this is one raptor concept by a company called New Scale.

654
00:51:33,400 --> 00:51:36,500
It's a, I think it's a 77 megawatt electric.

655
00:51:36,600 --> 00:51:41,120
That's a 65-foot-long nine-foot diameter module.

656
00:51:41,880 --> 00:51:50,620
And the idea with new nuclear is that it's designed and permitted once, and then can be built 10,000 times and deployed anywhere.

657
00:51:51,220 --> 00:51:55,780
And that modularity is what creates the opportunities in maritime.

658
00:51:57,640 --> 00:51:59,360
So, I could talk a bit more about some of these

659
00:51:59,360 --> 00:51:59,940
Reaction technologies.

660
00:52:00,220 --> 00:52:03,060
Why don't we skip through that for the moment and get to the

661
00:52:03,060 --> 00:52:03,900
Items at hand.

662
00:52:05,160 --> 00:52:07,160
The federal government, and particularly the maritime

663
00:52:07,160 --> 00:52:09,440
Division of the Department of Transportation is displaying

664
00:52:09,440 --> 00:52:12,560
tremendous leadership around the opportunities for advanced

665
00:52:12,560 --> 00:52:14,160
nuclear in maritime.

666
00:52:16,100 --> 00:52:20,020
And so we have an opportunity because we have been

667
00:52:20,020 --> 00:52:26,260
clear about our ambition to remain at the forefront of the energy space among ports.

668
00:52:26,740 --> 00:52:30,920
We have an opportunity to execute a memorandum of cooperation with the DOT, specifically

669
00:52:30,920 --> 00:52:32,020
at the maritime division.

670
00:52:32,380 --> 00:52:38,020
Bullets here capture the high points, but it's a non-binding M.U., it's a statement of

671
00:52:38,020 --> 00:52:44,160
intent, and it basically says that when the maritime division thinks about ports in the

672
00:52:44,160 --> 00:52:51,360
us who are eager to be at the forefront of advanced technologies and energy, particularly in nuclear

673
00:52:51,360 --> 00:52:53,540
maritime, we want them to think of us, right?

674
00:52:54,000 --> 00:52:59,760
The memorandum of cooperation is an intent to do just that, to cooperate around advancing

675
00:52:59,760 --> 00:53:02,040
the state of knowledge and practice.

676
00:53:03,260 --> 00:53:07,260
We have a unique opportunity because we have trips to the Secretary Delphi, visiting the port

677
00:53:07,260 --> 00:53:07,580
tomorrow.

678
00:53:08,500 --> 00:53:13,520
And so, we're seeking, by way of this action item, commission approval to execute that agreement

679
00:53:13,520 --> 00:53:19,520
with Mayrad and then we'll take advantage of Secretary Duffy's presence tomorrow to have a signing ceremony

680
00:53:19,520 --> 00:53:24,540
provided we achieve that permission from you all today. So I'll pause there on that first

681
00:53:24,540 --> 00:53:30,160
action item and then and then go a little deeper into the second one. Do we have any questions from

682
00:53:30,160 --> 00:53:35,540
Commission regarding the first approval on the memorandum? Commissioner Hunter.

683
00:53:36,800 --> 00:53:39,140
Thank you, Jeff, a great presentation.

684
00:53:40,700 --> 00:53:45,180
We're exploring micro reactor modular reactors also.

685
00:53:45,660 --> 00:53:48,420
Yeah, and sort of an unnatural break in the presentation.

686
00:53:48,740 --> 00:53:52,640
A couple more slides related to the second action item, which is a little more granular,

687
00:53:52,860 --> 00:53:55,140
in terms of the ways that reactors are applied to maritime.

688
00:53:55,140 --> 00:54:05,360
but when we talk about raptors powering vessels or reactors in port on the vessel side in particular,

689
00:54:05,360 --> 00:54:08,260
it is in that what you would call a micro-reactor class.

690
00:54:08,740 --> 00:54:15,400
So, you know, kind of 10 to 50 megawatts versus hundreds of megawatts in that small module or scale.

691
00:54:15,860 --> 00:54:17,620
It's a continuum, of course, but absolutely.

692
00:54:20,210 --> 00:54:21,950
Commissioner, there's any other questions?

693
00:54:22,750 --> 00:54:24,510
Hearing none to have a motion for approval?

694
00:54:25,130 --> 00:54:33,550
And here in the first and our second, all those in favor say I, any opposition, same sign, motion passes, thank you.

695
00:54:33,730 --> 00:54:34,330
Just the next item.

696
00:54:34,550 --> 00:54:34,950
Thank you.

697
00:54:34,990 --> 00:54:39,470
With Jeff as well as the next member.

698
00:54:39,910 --> 00:54:40,190
Yeah.

699
00:54:40,470 --> 00:54:41,290
Well, thank you very much.

700
00:54:41,930 --> 00:54:44,670
So notice the difference between cooperation and collaboration.

701
00:54:45,790 --> 00:54:49,910
The subtle difference in the nature of the memorandau with these two entities,

702
00:54:49,910 --> 00:54:54,310
It's made rats really a statement of a tent and a tent to cooperate with core power.

703
00:54:54,590 --> 00:54:58,610
We actually have an opportunity to collaborate on a desktop analysis, a feasibility study.

704
00:54:58,750 --> 00:54:59,950
And I want to...

705
00:55:00,000 --> 00:55:08,300
But emphasize those words. This is about using the Port of Corpus Christi as a case study for what

706
00:55:08,300 --> 00:55:15,140
deployment of two applications of nuclear and maritime could look like. This is a desktop analysis.

707
00:55:15,740 --> 00:55:23,640
This is using port-specific operational information, geographic data. This is a case for us to

708
00:55:23,640 --> 00:55:31,220
advance the state of knowledge around this topic. It is not about it. It is not necessarily

709
00:55:31,220 --> 00:55:35,260
a populated deployment. I think we just want to emphasize that distinction. This is about

710
00:55:35,260 --> 00:55:44,100
us doing what we do in serving as a case study, a representation of American ports in innovative

711
00:55:44,100 --> 00:55:49,100
applications of energy and maritime. You can see here that the two parts of the scope, one related

712
00:55:49,100 --> 00:55:53,380
to floating nuclear power plants, the idea of essentially taking a modular reactor, micro, or

713
00:55:53,380 --> 00:55:59,480
small reactor and putting it on a barge so that it can be deployed in various places in

714
00:55:59,480 --> 00:55:59,740
the port.

715
00:56:00,760 --> 00:56:04,920
Now, I'll show you some images that mobility does not mean you're moving it on a daily

716
00:56:04,920 --> 00:56:08,560
basis, but it does create some optionality in terms of where you cite them.

717
00:56:08,860 --> 00:56:14,620
Secondly, the scope includes evaluating port readiness and, again, using us as a case study

718
00:56:14,620 --> 00:56:19,740
for nuclear propulsion in the maritime fleet, which is coming sooner than most people

719
00:56:19,740 --> 00:56:20,080
think.

720
00:56:20,080 --> 00:56:28,220
Right? So a couple images. Core power is among the global companies that are interested in

721
00:56:28,220 --> 00:56:33,740
application of nuclear maritime. I think it's we can say definitively that Core power is the

722
00:56:33,740 --> 00:56:40,360
leader in that space. There are many fast followers, but Core has been at this longer and more

723
00:56:40,360 --> 00:56:46,700
comprehensively than any of them. This is a rendering of what that floating nuclear power plant,

724
00:56:46,700 --> 00:56:48,700
You know, barge-based power could look like,

725
00:56:51,280 --> 00:56:56,880
interesting business model in that it can provide behind the meter power or it can be grid connected or both, right?

726
00:56:57,080 --> 00:57:02,720
So if we're talking about reactors in the 300 megawatt range or so, that's a typical power plant.

727
00:57:02,900 --> 00:57:05,640
That's the power plant on the interharber today.

728
00:57:08,220 --> 00:57:13,980
firm, dispatchable, clean electrons, if you imagine a day when power is no longer a limiting

729
00:57:13,980 --> 00:57:21,260
factor for the US maritime industrial base. I mean, it's a major game changer. Likewise,

730
00:57:21,340 --> 00:57:28,300
when we talk about propulsion in the civil maritime fleet, this is a concept from core, but this

731
00:57:28,300 --> 00:57:37,260
perhaps is a little more striking. This is a vessel that is, it's being designed by the

732
00:57:37,260 --> 00:57:40,960
career, career research institute for ships in the Ocean Engineering, which is a mouthful

733
00:57:40,960 --> 00:57:46,040
and I always have to read, in partnership with Samsung Heavy Industries, this vessel actually

734
00:57:46,040 --> 00:57:52,820
achieved the approval and principle from the American Bureau of Shipping in July of this year

735
00:57:52,820 --> 00:57:58,700
last month. So this is a design concept that was unveiled year and a half ago and is steadily

736
00:57:58,700 --> 00:58:05,660
working its way through the vessel, the international approval process. And I'll just plant

737
00:58:05,660 --> 00:58:12,140
a couple of seats here. When you start introducing a technology like nuclear aboard vessels,

738
00:58:13,480 --> 00:58:22,800
you no longer are facing the trade-off between speed and fuel consumption and emissions, right?

739
00:58:22,800 --> 00:58:30,540
need, no consequence in terms of cost for fuel or emissions, which can profoundly change the

740
00:58:30,540 --> 00:58:34,600
efficiency with which we move cargos across the oceans, right? I mean, it's spent

741
00:58:34,600 --> 00:58:40,100
some time thinking about that. Likewise, if you have a vessel with a micro-ractor aboard

742
00:58:40,100 --> 00:58:45,780
it that comes into port, and is partially powered down, all of a sudden vessels become

743
00:58:45,780 --> 00:58:51,260
potential contributors of electrons to port activities of the surrounding community, completely

744
00:58:51,260 --> 00:58:56,460
different paradigm, fantastically interesting, these are the types of things that core power

745
00:58:56,460 --> 00:59:01,740
is leaning in on with this analysis, and we just have the privilege of being the representative

746
00:59:01,740 --> 00:59:04,280
port for that analysis in that case study.

747
00:59:04,960 --> 00:59:07,100
So, I'll stop there taking any questions, thanks for your attention.

748
00:59:07,660 --> 00:59:08,700
Commissioner Lomuthia.

749
00:59:11,410 --> 00:59:16,630
So, obviously we talked about this quite a bit, and ships have been powered by nuclear energy

750
00:59:16,630 --> 00:59:20,530
for, since the 60s, really, so proven,

751
00:59:20,650 --> 00:59:24,670
it's submarines, which are even more interesting, smaller.

752
00:59:27,230 --> 00:59:30,510
But how do you make sure, you know,

753
00:59:30,730 --> 00:59:32,450
how are you got hurricanes, we've got everything else,

754
00:59:32,950 --> 00:59:34,730
how do you make sure that you don't,

755
00:59:34,910 --> 00:59:36,450
I know they're not pressurized anymore,

756
00:59:37,530 --> 00:59:39,790
so that these new burdens are not pressurized,

757
00:59:39,810 --> 00:59:41,670
you don't have the same situation,

758
00:59:41,790 --> 00:59:44,250
but how do you make sure it's safe for its support?

759
00:59:44,250 --> 00:59:49,810
hurricane comes and yeah I could you talk around that sure I mean I I honestly I think the

760
00:59:50,750 --> 00:59:57,770
the planning and response to to weather disruptions is the same approach that we take with

761
00:59:57,770 --> 00:59:59,930
vessels today which is you get them offshore.

762
01:00:00,210 --> 01:00:29,930
Right? We, I mean, typically we have enough notice in panic storms and if Danielle's here, and she can chime in on the case of that, but we clear vessels off dox and get them out of harm's way, if there's a storm head sway, and we know different with a vessel powered by nuclear. In the case of the floating nuclear power plants and the modules that are on those, I mean, they are incredibly robust for all sorts of reasons.

763
01:00:29,930 --> 01:00:34,330
and the nuclear is the most heavily regulated technology on the planet and they would be

764
01:00:34,330 --> 01:00:40,550
cited and and and more to such that they you know they would have they would be able

765
01:00:40,550 --> 01:00:46,090
to withstand events you're just like for example I mean at our at bulk talk three we have

766
01:00:46,090 --> 01:00:50,230
a barge that's effectively flooded down there permanently I mean so there there are certainly

767
01:00:50,230 --> 01:00:58,490
ways to do that with infrastructure that's semi-permanent I also just in that on that topic of

768
01:00:58,490 --> 01:01:05,050
resilience when you compare renewables or the above ground electric

769
01:01:05,050 --> 01:01:10,130
grids ability to withstand extreme weather versus a

770
01:01:10,130 --> 01:01:15,830
containerized reactor, you know, it actually offers a

771
01:01:15,830 --> 01:01:20,490
degree of resilience potentially in electricity generation

772
01:01:20,490 --> 01:01:24,670
that we don't have today in most forms generation.

773
01:01:28,640 --> 01:01:29,200
commissioners.

774
01:01:30,000 --> 01:01:33,140
You said something, and I just didn't know what it meant.

775
01:01:33,440 --> 01:01:35,180
You said contributors of neurons.

776
01:01:35,620 --> 01:01:36,140
Elections.

777
01:01:36,560 --> 01:01:36,800
Yeah.

778
01:01:37,060 --> 01:01:37,480
Yeah.

779
01:01:37,760 --> 01:01:37,900
Sorry.

780
01:01:38,540 --> 01:01:39,080
Yeah.

781
01:01:39,960 --> 01:01:41,440
Well, I mean, power.

782
01:01:41,720 --> 01:01:42,200
Right, sir.

783
01:01:42,760 --> 01:01:45,220
Very sort of very early concept.

784
01:01:46,100 --> 01:01:53,180
But right, that is, I mean, we talk about today providing sure power for vessels to allow them to get off their diesel engines.

785
01:01:53,240 --> 01:01:55,600
And in fact, we have grants to reinstall.

786
01:01:55,600 --> 01:02:12,780
Do a feasibility study and then reinstall some shore power at strategic births here so that vessels that are diesel power can power down, not, you know, we know that vessels are the primary contributor of mobile emissions and when they're in port in particular, they have to keep their engines on unless there's a power alternative.

787
01:02:13,640 --> 01:02:15,800
Some vessels are capable of receiving shore power.

788
01:02:16,540 --> 01:02:19,540
In the case of a vessel powered by a micro reactor.

789
01:02:19,540 --> 01:02:28,020
It's its own power plant and may not require all of that that energy when it's in port, and so right all sorts of

790
01:02:28,960 --> 01:02:34,740
Engineering logistical challenges there, but all of a sudden it's a scenario where you're bringing power plants

791
01:02:34,740 --> 01:02:40,040
Intermittently into port instead of the opposite scenario how feasible it is to be able to make that grid and

792
01:02:40,040 --> 01:02:46,360
Intersection those are are things to be worked out by people a much smarter than me, but it is it is I

793
01:02:46,360 --> 01:02:51,460
I mentioned it's just to illustrate how much of a disruptor it could be relative to the way we do business today.

794
01:02:51,780 --> 01:02:57,200
Is there a timeline on how long any of this would take or where we think we would be?

795
01:02:57,600 --> 01:03:04,900
Yeah, I mean, I think when you talk about advanced inquiry, I think most people talk in terms of the

796
01:03:04,900 --> 01:03:10,520
the reactors that are for this to long, maybe being commercialized within a decade.

797
01:03:10,520 --> 01:03:18,680
These are slow and methodical processes because it's such a heavily regular technology and while it's

798
01:03:18,680 --> 01:03:22,660
iterating very quickly, those generation four reactors are completely different than anything that's

799
01:03:22,660 --> 01:03:23,200
come before.

800
01:03:25,720 --> 01:03:32,800
There seems to be bipartisan, domestically, and international support to invest in regulatory

801
01:03:32,800 --> 01:03:36,820
reform and streamlining, but it's still a very slow process.

802
01:03:36,820 --> 01:03:43,220
And then one last thing, how would this impact our customers, if at all, current customers?

803
01:03:45,280 --> 01:03:52,500
Yeah, great question. I mean, I think the impacts are pretty indirect, if at all. Obviously, you know,

804
01:03:53,200 --> 01:03:58,960
when we first, when we talked about seeing the first wave of nuclear propulsion in the civil maritime fleet,

805
01:03:58,960 --> 01:04:06,420
those vessels, there's, there's not clarity yet about what kind of safety zones or protection

806
01:04:06,420 --> 01:04:11,900
or require around those vessels and that depending on what those regulation looks like,

807
01:04:12,300 --> 01:04:16,540
regulations look like could have impact for their, you know, their, how they're accompanied

808
01:04:16,540 --> 01:04:23,800
in port and how much of a buffer you build around them. But, you know, if anything, the opportunities

809
01:04:24,360 --> 01:04:29,240
extend to current customers in propulsion. There are efficiencies for the vessels that, you know,

810
01:04:29,240 --> 01:04:34,240
they utilize today as well, that will eventually be realized. Thank you.

811
01:04:36,600 --> 01:04:37,600
Commissioner Housha.

812
01:04:38,440 --> 01:04:45,100
I do have good presentation as always. I was in India last week at a couple of young men who have

813
01:04:45,100 --> 01:04:53,160
developed LNGs and sold just two guys and they're very busy guiding all the SMR's small

814
01:04:53,160 --> 01:04:57,760
much of the reactors just about a year ago and just moving forward.

815
01:04:58,400 --> 01:04:59,960
And I think the world is...

816
01:05:00,000 --> 01:05:15,500
Going along with this, a development into answer as one of my questions, our commissioner towards us, how far is this? I think it's going to move faster than 10 years. I think it's we're already short of power and this is pretty neat and clean power.

817
01:05:16,180 --> 01:05:24,000
I personally hope you're right. I think there are parts of the world that are moving more quickly than the United States is today to be sure.

818
01:05:25,160 --> 01:05:28,260
But, you know, so instead of, I think, is the hour of the day.

819
01:05:28,500 --> 01:05:28,860
Okay, good job.

820
01:05:29,120 --> 01:05:29,140
Thanks.

821
01:05:29,940 --> 01:05:30,680
Commissioner Hunter.

822
01:05:31,720 --> 01:05:31,760
Nope.

823
01:05:32,560 --> 01:05:33,060
Commissioner Padrotti.

824
01:05:34,200 --> 01:05:34,760
Thank you, Jeff.

825
01:05:35,320 --> 01:05:38,220
That was really a good presentation.

826
01:05:38,620 --> 01:05:39,780
We appreciate that.

827
01:05:40,180 --> 01:05:46,060
So the questions are, so there will be a public education aspect of this to change the public

828
01:05:46,060 --> 01:05:52,400
idea that nuclear is going to turn everybody green, but so there has to be a plan for

829
01:05:52,400 --> 01:05:52,680
that.

830
01:05:52,680 --> 01:05:55,500
And number two, you know, the source of uranium.

831
01:05:56,380 --> 01:05:57,960
What is the plan for that?

832
01:05:58,300 --> 01:06:02,280
With all this increase in advanced nuclear technology,

833
01:06:03,740 --> 01:06:05,220
the source is uranium.

834
01:06:06,260 --> 01:06:08,740
Is there, have we done research in too?

835
01:06:08,880 --> 01:06:10,100
Which I'm sure you have?

836
01:06:11,300 --> 01:06:14,020
Yeah, that's why we're going to get all this uranium.

837
01:06:14,540 --> 01:06:17,740
Yeah, I mean, here in the process involved in extracting uranium.

838
01:06:18,260 --> 01:06:21,480
Right, and it's concentrated in a few places

839
01:06:21,480 --> 01:06:25,860
of the planet, there's not enough of it, it's intensive and they're environmental impacts

840
01:06:25,860 --> 01:06:26,720
from extracting it, right?

841
01:06:26,740 --> 01:06:27,900
I mean, they're trade-offs.

842
01:06:28,120 --> 01:06:33,860
I think, as with any technology in the energy space, you know, one thing we know for

843
01:06:33,860 --> 01:06:35,800
certain is they all have cost, they all trade-offs.

844
01:06:36,020 --> 01:06:42,560
I think one of the promises of that fourth generation of reactors is they're not all powered

845
01:06:42,560 --> 01:06:50,580
by uranium, some of them are powered by thorium or plutonium, and so there is, there is

846
01:06:50,580 --> 01:06:58,200
them diversity. Now, those things are still difficult to acquire, right? But as opposed

847
01:06:58,200 --> 01:07:02,780
to the earlier generations of directors for sort of, you know, they were all uranium-based,

848
01:07:02,860 --> 01:07:09,140
they were all water-cooled. That diversity, I think, is, and I think, frankly, that maybe

849
01:07:09,140 --> 01:07:15,040
is what ultimately takes a little extra time on the front end, because there are six or seven

850
01:07:15,040 --> 01:07:20,780
for the different propelling technologies in that generation for space, and it's not yet clear

851
01:07:21,360 --> 01:07:28,380
which will emerge as the leaders, but there is some diversity in fueling type, and so

852
01:07:28,380 --> 01:07:32,840
it helps potentially hedge against that, the challenge with your annual availability.

853
01:07:33,760 --> 01:07:38,740
The cost of energy is in line with the LNG of coal.

854
01:07:39,100 --> 01:07:42,940
Yeah, I don't know, I honestly don't know, and I don't know if anyone really knows.

855
01:07:42,940 --> 01:07:49,640
I think one of the arguments against nuclear of any generation is the front and cost for

856
01:07:49,640 --> 01:07:50,800
construction deployment.

857
01:07:52,060 --> 01:07:57,940
If you advertise that over the life cycle that you get from, you know, 50, 60, 100-year

858
01:07:57,940 --> 01:08:04,380
plants, then you know, then it starts to look very favorable, but you front and load those

859
01:08:04,380 --> 01:08:04,700
costs.

860
01:08:04,820 --> 01:08:10,380
I mean, generation one or two plants, I mean, some of those cost 12 or 15 billion dollars

861
01:08:10,380 --> 01:08:16,660
to deploy, which is one of the arguments for moving to this modular form, and I think those

862
01:08:16,660 --> 01:08:21,880
economics are what will ultimately determine which of those technologies emerges as the

863
01:08:21,880 --> 01:08:22,240
leader.

864
01:08:25,420 --> 01:08:25,760
Thank you.

865
01:08:25,800 --> 01:08:26,900
Thank you, Commissioner Petrotti.

866
01:08:27,060 --> 01:08:27,920
Commissioner Hoskins.

867
01:08:28,660 --> 01:08:28,680
Yep.

868
01:08:28,860 --> 01:08:30,520
You know, thank you for the presentation.

869
01:08:30,880 --> 01:08:33,220
Any other ports applying for this, that you're aware?

870
01:08:33,500 --> 01:08:34,340
I'm really glad you asked that.

871
01:08:34,460 --> 01:08:35,140
I should have mentioned it.

872
01:08:35,500 --> 01:08:42,440
So we are about three weeks behind the port of Long Beach in a memorandum of Corporate

873
01:08:42,440 --> 01:08:48,840
with Mayrad. There's an interesting story there in terms of Sangey, who now is leading the American

874
01:08:48,840 --> 01:08:53,260
Association of Port Authority. When he was at Mayrad, he was the one before he knew we had

875
01:08:53,260 --> 01:08:58,620
any interest in this space at all who broke or that memorandum of cooperation. So we're a fast

876
01:08:58,620 --> 01:09:05,340
follower. There are, I think there's at least one other port in the U.S. that is casually interested

877
01:09:05,340 --> 01:09:09,940
in this topic, and then there are a handful of ports around the country.

878
01:09:11,060 --> 01:09:16,780
The reason that we raised our hand and asked core power to consider using us as a case

879
01:09:16,780 --> 01:09:22,420
study for U.S. ports is because core power conducted and equivalent feasibility study

880
01:09:22,420 --> 01:09:27,000
at the port of Rotterdam two years ago. When I found out about that, core powers, annual event,

881
01:09:27,300 --> 01:09:30,480
they've been hosting this summit for four or five years about nuclear and maritime, and when

882
01:09:30,480 --> 01:09:33,160
I was there three years ago, and I found out that they were doing the same Rotterdam as a

883
01:09:33,160 --> 01:09:35,580
They look, Ronin is our biggest trading partner.

884
01:09:36,240 --> 01:09:40,620
If you were to replicate that study in Corpus Christi, you would have the first end to end

885
01:09:40,620 --> 01:09:44,260
look at nuclear readiness on one of the busiest trade routes on the planet.

886
01:09:44,960 --> 01:09:48,400
And so that's the power of using us as a case study for U.S. port.

887
01:09:48,900 --> 01:09:52,220
So there are other ports on the planet, we're in very rare if I dare in that respect.

888
01:09:52,680 --> 01:09:56,860
There are only a couple ports in the U.S., but I expect there will be many fast followers

889
01:09:56,860 --> 01:09:57,640
here.

890
01:09:59,340 --> 01:09:59,960
Or...

891
01:10:00,000 --> 01:10:05,940
Excellent questions. Jeff, very high-level. Obviously, you're involved in a global perspective of discussion

892
01:10:05,940 --> 01:10:13,040
here. So, talk about our branding of innovation. Obviously, the cost discussion, innovation, discussion.

893
01:10:13,600 --> 01:10:20,780
In the last thing I just want you to emphasize is certainly this is a memorandum of understanding. There is more dialogue, more communication.

894
01:10:21,920 --> 01:10:27,160
The closer impact, people are going to ask, how does this impact the community? What does this mean to our industry partners?

895
01:10:27,160 --> 01:10:33,120
how does it lower the cost? Is there safe? What are the safety concerns? Bottom line is this will be

896
01:10:33,120 --> 01:10:38,480
very robust in terms of this discussion in which you'll come back to this commission further.

897
01:10:39,100 --> 01:10:46,040
Yeah, thank you for playing that. Right, this is a study to help answer those questions and not even necessarily

898
01:10:46,040 --> 01:10:50,940
for corpus Christi, but for the industry overall. I mean any time we have the chance to advance

899
01:10:50,940 --> 01:10:56,400
the body of knowledge around emerging technology, it's a fortuitous position for us. It's

900
01:10:56,400 --> 01:11:01,340
waited to garner a great attention for the innovation to which we're committed and that's what

901
01:11:01,340 --> 01:11:06,120
this is about, it's about answering all of those questions. But when we talk about advancing

902
01:11:06,120 --> 01:11:13,440
a technology that is firm, dispatchable power in an era where we, you know, the data center

903
01:11:13,440 --> 01:11:21,060
conversation is a daily conversation in every circle, the world needs more firm, dispatchable

904
01:11:21,060 --> 01:11:26,240
emissions free sources of electricity and this will no doubt be part of that mix and this

905
01:11:26,240 --> 01:11:29,200
is just a chance for us to help advance that state

906
01:11:29,200 --> 01:11:30,520
of knowledge and practice.

907
01:11:31,040 --> 01:11:33,180
You know what you're saying there is there other value

908
01:11:33,180 --> 01:11:35,980
chains that we can, we can drive and create more

909
01:11:35,980 --> 01:11:39,060
opportunity economically speaking for our community as well.

910
01:11:39,480 --> 01:11:40,700
Absolutely, thank you.

911
01:11:40,980 --> 01:11:42,700
Seeing no other questions, thank you Jeff,

912
01:11:43,000 --> 01:11:45,520
must there others do we have to approve these two?

913
01:11:45,780 --> 01:11:46,820
Would do we take them separately?

914
01:11:46,980 --> 01:11:49,180
Yeah, we got the first one covered, I think.

915
01:11:49,700 --> 01:11:50,800
So we need to do that.

916
01:11:50,960 --> 01:11:52,100
Thank you for that reminder.

917
01:11:53,000 --> 01:11:53,920
That's not a good one.

918
01:11:54,420 --> 01:11:55,240
It's been a while.

919
01:11:55,240 --> 01:12:01,720
second we got a motion about a second and I have a second all those in favor please say I

920
01:12:01,720 --> 01:12:05,880
Any opposition same sign motion approves. Thank you Jeff. Thank you, Elirma.

921
01:12:06,460 --> 01:12:09,760
Item 10, E adopted amended resolution increasing the

922
01:12:09,760 --> 01:12:21,440
2026 promotion development fund by Senator 725,000 dollars restricted exclusively to eligible expenditures under the U.S. Environmental Protection Agency cleanports program

923
01:12:21,980 --> 01:12:23,200
award number

924
01:12:24,420 --> 01:12:31,620
027821. Thank you, Chairman. I will not ask for photos on this item, but staff is requesting

925
01:12:31,620 --> 01:12:37,960
the approval to amend the 2026 promotion and development fund resolution, increasing the

926
01:12:37,960 --> 01:12:49,680
authorized amount by 725,000 from 5.2 million to 5,975,000. These are restricted funds that will

927
01:12:49,680 --> 01:12:57,860
We use solely for the EPA Clean Ports Education and Workforce Development initiatives that have previously been approved by Commission.

928
01:12:58,520 --> 01:13:07,460
These activities were included in our original 2026 annual budget under the Public Relations Community and Professional Services line items.

929
01:13:08,600 --> 01:13:16,460
However, after speaking with legal we have determined that we do need these expenditures to fall under promotion and development.

930
01:13:16,460 --> 01:13:20,900
So, we are asking for this amendment so that we can proceed appropriately.

931
01:13:21,900 --> 01:13:29,620
I will tell you that 69% of these expenditures are eligible for reimbursement through the EPA

932
01:13:30,280 --> 01:13:34,860
and that this is going to run through 2028.

933
01:13:35,080 --> 01:13:40,920
So, when we do our P&D resolution for next year, you'll see items come up again,

934
01:13:40,920 --> 01:13:46,820
but the 725 is specifically for our expenditures for this particular year.

935
01:13:47,240 --> 01:13:48,300
I'll pause for questions.

936
01:13:50,000 --> 01:13:54,360
I just want to point out this tip-go through audit committee for a very comprehensive discussion.

937
01:13:55,020 --> 01:13:57,200
One of the items noted is obviously the reimbursement.

938
01:13:57,800 --> 01:14:04,920
So although we've decreased that PMD, we will have a reimbursement coming from here.

939
01:14:04,920 --> 01:14:08,180
And this is another great example of cooperation

940
01:14:08,180 --> 01:14:12,240
through grant funding efforts to be able to enhance the impact

941
01:14:12,240 --> 01:14:12,860
to our community.

942
01:14:13,680 --> 01:14:15,780
So with that being said, do I have a motion to approve?

943
01:14:17,120 --> 01:14:18,440
Second, do I hear second?

944
01:14:19,120 --> 01:14:19,940
Second, I'll add a quick question.

945
01:14:20,340 --> 01:14:23,300
Yes, questions to Mr. Hujo.

946
01:14:23,820 --> 01:14:24,080
Who's all right?

947
01:14:24,140 --> 01:14:26,100
Did I hear you say that this was

948
01:14:26,100 --> 01:14:27,760
end of budget but under a different category?

949
01:14:28,000 --> 01:14:28,800
Yes, sir.

950
01:14:29,220 --> 01:14:29,260
OK.

951
01:14:31,260 --> 01:14:32,020
Any other questions?

952
01:14:32,340 --> 01:14:32,880
Hearing none?

953
01:14:33,260 --> 01:14:34,660
All those in favor, please say aye.

954
01:14:34,660 --> 01:14:42,520
any opposed same sign motion passage a Rosaril state there will continue to follow up with the same

955
01:14:42,520 --> 01:14:46,760
item as a piece of that is approved the funding agreement with the English side independent

956
01:14:46,760 --> 01:14:52,440
school district in the amount of 160,000 to establish and implement a port industry's maritime

957
01:14:52,440 --> 01:14:59,260
academy as part of the port of corpus christia authorities EPA cleanports program award that I've just mentioned

958
01:15:00,000 --> 01:15:10,920
Thank you, Chairman. So, staff is requesting the approval to enter into a $460,000 funding agreement with Ingleside ISD to establish a port industry's

959
01:15:10,920 --> 01:15:16,560
American time academy. This partnership with those apportion of the port's education and workforce development

960
01:15:16,560 --> 01:15:25,100
commitments under the EPA Clean Ports program, and it's eligible for 69% reimbursement with a 31%

961
01:15:25,100 --> 01:15:34,820
share on the port side. Funding includes $300,000 in 2026 in an anticipated $160,000 in

962
01:15:34,820 --> 01:15:41,780
2027. This Academy will build on English-side ISD's existing career and technology education

963
01:15:41,780 --> 01:15:47,220
program to connect middle school and high school students with maritime and industrial careers.

964
01:15:49,600 --> 01:15:52,580
excellent till we have a motion for approval.

965
01:15:53,180 --> 01:15:56,040
Have a first, a hair second, any discussion?

966
01:15:57,220 --> 01:15:59,260
Hearing none, all those in favor, please say aye.

967
01:15:59,920 --> 01:16:01,300
Any opposed, same sign?

968
01:16:01,840 --> 01:16:02,260
Congratulations.

969
01:16:02,580 --> 01:16:03,200
Thank you, Rosa.

970
01:16:03,320 --> 01:16:10,680
Next item is on the open agenda is item 10G, a proven amendment to the interlocal agreement

971
01:16:10,680 --> 01:16:17,960
with the city of Corpus Christi authorizing PCCA to include requested utility construction on city owned portions of San

972
01:16:17,960 --> 01:16:20,960
Rankin is part of the Texas Department of Transportation

973
01:16:20,960 --> 01:16:23,520
Maritime Division's Seaport Connectivity Program,

974
01:16:24,200 --> 01:16:27,660
Grant Award to PCCA in July of 2024,

975
01:16:28,040 --> 01:16:29,380
Leslie Ruta, good morning.

976
01:16:29,720 --> 01:16:31,700
Good morning, Chairman and commissioners.

977
01:16:32,280 --> 01:16:33,860
You've heard this one a little bit before.

978
01:16:34,120 --> 01:16:37,820
So the Sam, when we applied for the Seaport Connectivity

979
01:16:37,820 --> 01:16:40,300
Program in award awarded back in 2024,

980
01:16:41,000 --> 01:16:43,820
the goal behind this was to reconstruct Sam Rankin,

981
01:16:43,880 --> 01:16:45,920
which is partially owned by the city of Corpus Christi

982
01:16:45,920 --> 01:16:47,080
and by the Port of Corpus Christi.

983
01:16:47,080 --> 01:16:48,380
by the port.

984
01:16:52,100 --> 01:16:57,380
The first round of that, the city knew they needed to do storm water, and then we took

985
01:16:57,380 --> 01:17:02,060
this interlocal agreement to the city, and they said, yes, we will pay up to $2.5 million

986
01:17:02,060 --> 01:17:07,480
per their bond election to cover the cost of the storm water.

987
01:17:07,820 --> 01:17:10,280
That would be because it would be from the original agreement.

988
01:17:11,000 --> 01:17:15,280
In the process of designing this project, in collaboration with the city of Corpus Christi,

989
01:17:15,280 --> 01:17:17,620
They identified additional utilities.

990
01:17:17,900 --> 01:17:20,680
Those additional utilities are coming in at about that,

991
01:17:20,680 --> 01:17:23,780
at about that 2.5 million, but the stormwater

992
01:17:23,780 --> 01:17:25,140
came in a little bit a little bit lower.

993
01:17:25,560 --> 01:17:28,780
What we are asking for in this amended interlocal,

994
01:17:29,040 --> 01:17:33,220
I'm sorry, I'm losing the word there,

995
01:17:33,540 --> 01:17:34,800
interlocal agreement with the city.

996
01:17:34,920 --> 01:17:36,580
We are asking to take their portion

997
01:17:36,580 --> 01:17:42,540
that they will repay us from 2.5 for just the stormwater

998
01:17:42,540 --> 01:17:46,580
to, and my slide is wrong, but that agreement is correct, and the memo is correct.

999
01:17:47,120 --> 01:17:52,340
We are taking it now up to 4.5 million that the city will pay the port of Corpus Christi

1000
01:17:52,340 --> 01:17:55,280
for storm water, as well as those additional utilities.

1001
01:17:55,940 --> 01:18:00,940
The other thing that happened in that process is the city actually contracted with the designer

1002
01:18:00,940 --> 01:18:05,980
to add those to the documents, so that they could be designed in the same

1003
01:18:06,520 --> 01:18:11,880
breath as the rest of the project and then constructed with the project to ultimately save funds

1004
01:18:11,880 --> 01:18:17,180
for the city and for the taxpayers. But that would like to ask your approval of this amendment

1005
01:18:17,180 --> 01:18:21,360
to the interlocal agreement with the city of Corpus Christi for Sam Reckon.

1006
01:18:22,420 --> 01:18:31,140
To have a motion for approval. First and I have a second. Any discussion? Hearing none, all those in favor, please say aye.

1007
01:18:31,860 --> 01:18:34,740
Any opposed same sign? Motion passes. Thank you Leslie.

1008
01:18:36,320 --> 01:18:42,760
Next, we have the award of a conference item 10-h, awarding a construction contract to

1009
01:18:42,760 --> 01:18:50,520
Gurky-activating an amount of 8.514 million, 871, on a lump sum basis, or Sam Rankin Street

1010
01:18:50,520 --> 01:18:55,780
Reconstruction funded by Seaport Connectivity Program Grant from the Texas Department of Transportation

1011
01:18:55,780 --> 01:18:56,740
Meritime Division.

1012
01:18:57,540 --> 01:18:57,760
Good morning.

1013
01:18:57,760 --> 01:19:05,260
morning chairman commissioners. As Leslie mentioned before, this is a textile grant funded and also

1014
01:19:05,260 --> 01:19:10,380
some funding from the city of Corpus Christi. So before you were here seeking a ward of the contract,

1015
01:19:11,200 --> 01:19:17,820
the project is just located west from here on Sam Rankin Road. The limits are from Port Avenue down

1016
01:19:17,820 --> 01:19:22,060
to the Interstate Highway 37 which puts it at about three quarter mile roadway.

1017
01:19:24,130 --> 01:19:25,070
History of this project

1018
01:19:25,070 --> 01:19:30,450
As mentioned, the in a local agreement with the city was in in 2025 for the storm water during

1019
01:19:30,450 --> 01:19:36,090
design. It was adequate for us to come in and look at the utilities as well as we're going to

1020
01:19:36,090 --> 01:19:40,830
reconstruct the entire street. The city came in and said they would like for us to include that in there.

1021
01:19:41,130 --> 01:19:46,510
They hired the engineer to do the design and incorporate with our drawings and they would have

1022
01:19:46,510 --> 01:19:52,690
this agreement that came before you just now. So the city's portion right now is up to 4.5

1023
01:19:52,690 --> 01:19:58,390
to cover all the city utilities and stormwater improvements. We have a grant with Texas

1024
01:19:58,390 --> 01:19:59,970
up to 8.5 million dollars.

1025
01:20:00,000 --> 01:20:02,000
Members with a 20% match from the port.

1026
01:20:06,280 --> 01:20:29,740
As you can see on the picture, this section of roadway is in bad bad shape, if you haven't driven any yet, you might need for by force to drive in. There's major, this repair on the roadway. As you can see in the top picture, there's actually a sidewalk there. You can't see. It's not up to par with 88 standards anymore. So this project will do a full reconstruction of the entire roadway. New sidewalks, new curb and gutter on the residential side.

1027
01:20:29,740 --> 01:20:35,600
We want to do sidewalks on the industrial side because there's no need for that in that area.

1028
01:20:36,120 --> 01:20:37,320
And then of course,

1029
01:20:38,100 --> 01:20:40,660
they'll be doing restriping of the entire roadway section.

1030
01:20:40,940 --> 01:20:45,540
Looking at all signage, make sure it meets the current standards and upgrading any signage that needs to be done.

1031
01:20:46,200 --> 01:20:50,600
The city utilities would include the storm, the water, the sanitary sewer, IT, and gas.

1032
01:20:50,920 --> 01:20:55,120
So every utility under the roadways should be completely improved with this project,

1033
01:20:55,180 --> 01:20:56,800
so we don't have any future failures.

1034
01:20:56,800 --> 01:21:02,040
There are some real-world crossing upgrades that are we done by the Alspade Yard.

1035
01:21:02,540 --> 01:21:05,940
Last year we completed our project where we added two new tracks for Alspade for the military

1036
01:21:05,940 --> 01:21:06,340
movements.

1037
01:21:06,660 --> 01:21:10,160
The three existing ones we're going to do some upgrades to the crossing themselves so that they're

1038
01:21:10,160 --> 01:21:11,900
up to par with that area.

1039
01:21:13,960 --> 01:21:16,960
So pavement for this project has been split into two.

1040
01:21:17,140 --> 01:21:21,580
The lavender color, what you see is the residential areas that we're doing asphalt, repair

1041
01:21:21,580 --> 01:21:26,620
on or construction on this one, and then the light blue will be the industrial area which we're

1042
01:21:26,620 --> 01:21:31,040
do with concrete to handle heavier loads for current use and future use.

1043
01:21:33,760 --> 01:21:37,440
Beards will receive on August 6 we did get four bidders on this project.

1044
01:21:38,080 --> 01:21:44,920
We broke down our bid by base bid, additive 1, 2, 3, and then we did an evaluated bid

1045
01:21:44,920 --> 01:21:48,460
calculated by adding the base bid and all three additives.

1046
01:21:49,320 --> 01:21:52,620
The reason for breaking it up, the base bid is the grant funding portion from Tech

1047
01:21:52,620 --> 01:21:53,440
Stock.

1048
01:21:53,440 --> 01:22:04,520
The bid number one is all the storm water that was originally approved with the city for their portion of contribution added to bid item number two is the industrial part, which is the concrete payment portion

1049
01:22:05,560 --> 01:22:07,500
from Aus Bay to Port Avenue.

1050
01:22:08,240 --> 01:22:15,520
And then that's a bit with then separately as number three for all the utility work for the city contingent on getting the interlock agreement with the city approved.

1051
01:22:15,520 --> 01:22:20,100
And Gerky was the lowest bidder on this project.

1052
01:22:20,900 --> 01:22:25,020
We have received concurrence from TechSat to approve and award the project.

1053
01:22:26,780 --> 01:22:27,840
Staff recommends approval.

1054
01:22:28,800 --> 01:22:29,600
There's any questions.

1055
01:22:30,080 --> 01:22:32,580
Gerky, this is their first official project with the port.

1056
01:22:32,860 --> 01:22:36,520
They've done a lot of work in the coastal bin with the city of Ransis Passing, the Cycorpus

1057
01:22:36,520 --> 01:22:37,960
Christie and the noise of the river authority.

1058
01:22:38,180 --> 01:22:42,140
I did follow up with their references and got good recommendations for them.

1059
01:22:42,740 --> 01:22:43,700
Commissioner Hoskins.

1060
01:22:44,620 --> 01:22:47,100
knowing some of the things that's going to be happening with the pork.

1061
01:22:47,300 --> 01:22:50,540
This is going to be a heavily used industrial road.

1062
01:22:51,120 --> 01:22:53,980
So is there a different standard that we can build this road too?

1063
01:22:54,080 --> 01:22:57,800
So we don't go back and do this five years from now, of course, mid-up, you know.

1064
01:22:58,580 --> 01:23:02,320
And that's why the portion that's highlighted in light blue, that's the industrial part.

1065
01:23:02,440 --> 01:23:06,660
And we're going with concrete pavement on that for that reason to handle the loads that

1066
01:23:06,660 --> 01:23:13,120
will be coming there at the port in the residential section will be a thickened hardier section

1067
01:23:13,120 --> 01:23:18,020
of asphalt as well, but being at a more residential at this point, we're doing asphalt there.

1068
01:23:20,450 --> 01:23:21,210
To make sure to notice.

1069
01:23:21,870 --> 01:23:28,470
I just want to be clear that staff is asking us to approve this subject to approval by City Council.

1070
01:23:28,570 --> 01:23:28,950
Correct.

1071
01:23:29,130 --> 01:23:35,070
And that's why we broke up the attitude bit separately, because for some reason the city does not approve their interlocal,

1072
01:23:35,250 --> 01:23:37,230
we can remove the attitude bit three.

1073
01:23:37,230 --> 01:23:37,770
Number three.

1074
01:23:37,890 --> 01:23:40,350
Yes, because the other one, the storm one was already approved.

1075
01:23:40,350 --> 01:23:46,850
It would just be removed entirely or brought back later, possibly.

1076
01:23:47,350 --> 01:23:49,010
That was something we had discussed with City.

1077
01:23:49,350 --> 01:23:52,750
We could potentially bring it back if there's a different action that needs to take place.

1078
01:23:53,190 --> 01:23:54,830
Okay, thank you.

1079
01:23:54,990 --> 01:23:55,630
Commissioner Hunter.

1080
01:23:56,450 --> 01:24:00,150
Is a thorough procurement process done by all parties or?

1081
01:24:00,450 --> 01:24:06,550
Yes, so we did the bidding of this project, including the City portions of it.

1082
01:24:06,750 --> 01:24:08,530
So we had to follow all the text on requirements.

1083
01:24:08,530 --> 01:24:10,670
since it's a grand funnier project.

1084
01:24:11,650 --> 01:24:14,210
TechSite has been in all the meetings a big bid

1085
01:24:14,210 --> 01:24:17,690
and the site visits, all the reviews of the plans

1086
01:24:17,690 --> 01:24:18,950
there has been involved since it's one

1087
01:24:18,950 --> 01:24:20,390
and so has a city that is sitting in

1088
01:24:20,390 --> 01:24:24,010
and in every single meeting during the design process as well.

1089
01:24:24,690 --> 01:24:25,530
Commissioner Petrotti.

1090
01:24:26,710 --> 01:24:26,730
Yes.

1091
01:24:26,990 --> 01:24:28,290
Thank you for the presentation.

1092
01:24:29,950 --> 01:24:33,810
I always look at the memorandums and you have alternatives

1093
01:24:33,810 --> 01:24:36,710
in other words, what happens if we don't approve it?

1094
01:24:36,710 --> 01:24:40,830
So sometimes that's good to kind of highlight some of those things to get people contact

1095
01:24:41,550 --> 01:24:45,750
of, you know, here we are in this process now, we stop now, here's the downside.

1096
01:24:46,610 --> 01:24:51,190
Yeah, well, one of the downsides, if we don't proceed with this, we've wanting to lose the

1097
01:24:51,190 --> 01:24:54,970
grant funding for this, and that my impact is for future grant applications.

1098
01:24:55,430 --> 01:24:58,390
We also lose the funding from the city, which is a great opportunity for us to take

1099
01:24:58,390 --> 01:24:59,950
advantage of, and for the...

1100
01:25:00,000 --> 01:25:08,760
This project roughly ran out of the 8.5 million, only like a 2.2 million of it is city portion of pavement.

1101
01:25:09,560 --> 01:25:15,520
So, there's a big chunk that's being paid by others, and if we forego, not awarding it, we lose that opportunity.

1102
01:25:16,820 --> 01:25:17,320
Thank you.

1103
01:25:17,320 --> 01:25:17,680
And welcome.

1104
01:25:19,140 --> 01:25:22,220
Sir, you know the questions of a motion for approval.

1105
01:25:23,180 --> 01:25:26,220
First, in a second, although it's in favor, please say aye.

1106
01:25:27,040 --> 01:25:27,520
Any opposed?

1107
01:25:27,680 --> 01:25:28,180
Same sign.

1108
01:25:28,540 --> 01:25:29,180
Motion passes.

1109
01:25:30,020 --> 01:25:30,320
Thank you.

1110
01:25:30,340 --> 01:25:32,220
I think, yes, you're going to stay up for the next item.

1111
01:25:32,520 --> 01:25:38,240
Next item on our agenda is approval of amendment number 3, service order number 1.

1112
01:25:38,380 --> 01:25:44,640
Under master services agreement, number 24, dash 03, with AECOM technical services ink in

1113
01:25:44,640 --> 01:25:45,860
the amount not to exceed.

1114
01:25:45,860 --> 01:25:53,760
You're $11,630,344 using standard hourly rates with a ceiling price for additional services

1115
01:25:53,760 --> 01:25:57,600
associated with the new Enland Rail Facility Project.

1116
01:25:58,540 --> 01:26:03,940
Chair and Commissioners, as you well have been aware of, this is our ongoing efforts to

1117
01:26:03,940 --> 01:26:09,600
produce more growth for the poor and the Enland Rail is one of our biggest projects here.

1118
01:26:10,440 --> 01:26:16,960
It is located in the Rothstown area, just east of Interstate Highway 69 and north of

1119
01:26:16,960 --> 01:26:22,740
St. Highway 44, as you can see in the map. This is one of the seven high-level goals for

1120
01:26:22,740 --> 01:26:27,480
the Port of Corpus Christi, and as Omar and his team mentioned, this is part of our rebranding

1121
01:26:27,480 --> 01:26:32,440
and stuff to continue our Port of Growth. This is the next chapter for the Port, and it will

1122
01:26:32,440 --> 01:26:37,140
be one of the biggest projects to help lead our future growth and opportunities in the area.

1123
01:26:38,680 --> 01:26:44,200
So, what I would like to do is put on a quick video to kind of give you an idea, the vision

1124
01:26:44,200 --> 01:26:45,220
for this site.

1125
01:26:45,520 --> 01:26:50,140
Now, keep in mind that some of the stuff you'll see is future development right now, this project

1126
01:26:50,140 --> 01:26:54,300
is just focused on the rail portion connecting U.P and C.P.K.C.

1127
01:27:02,240 --> 01:27:05,320
So, as you can see here, the rail line is the C.P.K.C rail line.

1128
01:27:05,860 --> 01:27:08,180
And the yellow one is on U.P. rail row.

1129
01:27:08,180 --> 01:27:14,560
PSNF has agreements with both to use those tracks and also the Class 3, the 3 Class 1 rails

1130
01:27:14,560 --> 01:27:15,720
that we're dealing with on this project.

1131
01:27:21,100 --> 01:27:24,520
This property is mainly farmland and as you can

1132
01:27:24,520 --> 01:27:29,080
see this is the design portion for this phase is all the rail and this image and then you'll

1133
01:27:29,080 --> 01:27:34,380
see as a future development, this is what we envision for the site. Behind here the site you see

1134
01:27:34,380 --> 01:27:41,540
the interstate highway 69 looking southward this to give you an

1135
01:27:41,540 --> 01:27:44,320
further perspective how big this area is you can fit 2,000

1136
01:27:44,320 --> 01:27:49,820
500 and 75 football fields on this piece of property. Currently the

1137
01:27:49,820 --> 01:27:54,800
port owns about 76 miles of track with this project we're bringing in almost

1138
01:27:54,800 --> 01:27:59,620
30 more miles of track just for this section of it. Looking here this is the

1139
01:27:59,620 --> 01:28:04,260
connection to CPC right off of the highway 44 heading north towards the

1140
01:28:04,260 --> 01:28:04,920
connection,

1141
01:28:09,600 --> 01:28:28,700
looking at option for the development of this site. We've been working with our commercial team to look at what potentially can be out there and there's been some concepts and talks with potential clients and tenants to see what we can put out there and pretty much with the location of the site is strategic right off the highway.

1142
01:28:28,700 --> 01:28:35,340
We got three class one rails, there's multiple opportunities that we can do with this site.

1143
01:28:45,030 --> 01:28:51,450
For more information on this as well, the property in the study for this design was 3,400 acres.

1144
01:28:52,090 --> 01:29:00,470
27 plus 100 acres of that is part of the port-owned property that we will be developing for this project.

1145
01:29:03,740 --> 01:29:08,800
Here you're looking at the connection to UP on the north end.

1146
01:29:08,800 --> 01:29:15,420
And then as we turn around and in the slide you'll be looking towards the port of Christy in the background.

1147
01:29:16,800 --> 01:29:22,280
So I just took you a quick idea of what we could envision out there.

1148
01:29:22,320 --> 01:29:26,680
This is just in the beginning, planning stages. Obviously there's more to be done with it.

1149
01:29:27,040 --> 01:29:28,200
A little bit history on the project.

1150
01:29:28,700 --> 01:29:38,460
Back in 2024 we came to commission and did an agreement with AECOM to do a concept design on what we could potentially put out there and how that will look.

1151
01:29:38,460 --> 01:29:47,660
In 2025, we came back into the 30 percent design contract with AECOM to develop a set of plants based on what we agreed on on the concept.

1152
01:29:48,940 --> 01:29:53,900
During all that time, we've had conversations with all three class-one rails and some stakeholders.

1153
01:29:55,240 --> 01:29:59,940
They've been some back-and-forths with reviews with the CPC and U.P. at 10% in 3rd.

1154
01:30:00,000 --> 01:30:08,040
30% we have already taken their comments and incorporated them into the final 30% that we received upon receiving the 30%

1155
01:30:09,080 --> 01:30:17,060
AECOM came in the presentation to the executive team in PortSAP and then a smaller presentation to LRP, kind of our findings and what our staff

1156
01:30:18,900 --> 01:30:27,000
Here today before we're looking to continue that design to final design so we can get this project going into construction.

1157
01:30:28,420 --> 01:30:40,580
With this next phase of it, we will be including a lot of stakeholder outreach so that we get the community involved in all the partners with the port and get their input as well as now we're starting to finalize the design.

1158
01:30:40,580 --> 01:30:43,620
The contract schedule, that's the right now,

1159
01:30:44,020 --> 01:30:45,560
pending approval today from Commission.

1160
01:30:45,760 --> 01:30:48,580
We are looking at finalizing and going out for

1161
01:30:48,580 --> 01:30:50,580
bid potentially October of 2027.

1162
01:30:51,400 --> 01:30:54,000
And that will put us in construction late

1163
01:30:54,000 --> 01:30:56,500
to early 2028 at the site.

1164
01:30:59,160 --> 01:31:00,640
The fees broken down on this project.

1165
01:31:00,840 --> 01:31:02,620
As you can see, the majority of it is on the

1166
01:31:02,620 --> 01:31:07,780
design phase with a 30% packet that was 526 pages

1167
01:31:07,780 --> 01:31:10,700
of design just for the 30%.

1168
01:31:10,700 --> 01:31:13,720
And that's not including all of the additional reports of the receipts.

1169
01:31:13,900 --> 01:31:15,840
So it's a big project in magnitude.

1170
01:31:17,560 --> 01:31:21,640
So the support services will have some additional geotech and

1171
01:31:21,640 --> 01:31:24,400
survey out there to identify underground utilities and get

1172
01:31:24,400 --> 01:31:27,020
depth on them to make sure that what impacts our project

1173
01:31:27,020 --> 01:31:28,020
would have on those.

1174
01:31:28,100 --> 01:31:30,900
And if any adjustments need to be made, there will be a lot of

1175
01:31:30,900 --> 01:31:32,860
coordination with all kinds of stakeholders.

1176
01:31:33,220 --> 01:31:36,160
Our environmental team will be handling being the lead on the

1177
01:31:36,160 --> 01:31:38,920
environmental portion of it with technical support and

1178
01:31:38,920 --> 01:31:43,520
exhibits from AECOM, the same with our real estate team.

1179
01:31:43,600 --> 01:31:45,480
We'll be working with them on the pipeline relocations.

1180
01:31:45,480 --> 01:31:50,240
We've already started some communication with some of the owners of the pipelines, and

1181
01:31:50,240 --> 01:31:53,340
we'll continue to start doing medication on that.

1182
01:31:54,420 --> 01:32:01,980
Grant's support, we did receive notice of selection on the build grant for $23.4 million already.

1183
01:32:02,380 --> 01:32:06,860
We did apply for the info grant that Commissioner Proud a couple of months ago, and we're

1184
01:32:06,860 --> 01:32:14,860
on to hear from them on that if other opportunities come up as well we have some money to help support additional

1185
01:32:14,860 --> 01:32:21,880
technical and exhibit in drawings for that as well and of course the communication part is going to be the key to this to

1186
01:32:21,880 --> 01:32:28,600
make sure our partners and the community are aware what we're doing and how we can integrate their concerns.

1187
01:32:28,600 --> 01:32:39,600
So, in summary, the total fee for this is 11,630,344, bringing the total contract for 17,246,455.

1188
01:32:40,640 --> 01:32:43,480
I know it seems like a big number when you look at construction costs.

1189
01:32:43,520 --> 01:32:48,600
This is left in 5% of the proposed or estimated construction costs at 30%.

1190
01:32:49,180 --> 01:32:51,600
So, at this point, staff recommends approval.

1191
01:32:52,080 --> 01:32:57,000
We do have members of the AECOM team and the local sub consultants in the audience.

1192
01:32:57,000 --> 01:32:59,280
there's any technical questions you might have?

1193
01:33:00,180 --> 01:33:02,140
I have a motion to have a second.

1194
01:33:02,360 --> 01:33:03,680
Second, we have a second.

1195
01:33:03,800 --> 01:33:04,520
We'll go for questions.

1196
01:33:04,940 --> 01:33:05,460
Commissioner Hunter.

1197
01:33:08,100 --> 01:33:18,310
So considering the congestion of supply that there is in this industry, especially in our region, the United States, is there an opportunity?

1198
01:33:18,530 --> 01:33:20,510
I'm just, this is hypothetical.

1199
01:33:20,970 --> 01:33:22,630
And I just need some health understanding.

1200
01:33:22,970 --> 01:33:27,390
Is there opportunity to expand this industry at this location?

1201
01:33:27,390 --> 01:33:33,230
we would have, if there were more opportunities in the future, would we have to create a new location?

1202
01:33:34,050 --> 01:33:35,170
How does that sit?

1203
01:33:41,940 --> 01:33:43,820
I guess that summarizes my three questions.

1204
01:33:44,580 --> 01:33:47,220
Okay, well, and I think commercial might be able to help a little bit more on this.

1205
01:33:47,720 --> 01:33:52,000
But the site itself right now, it's over 27 hundred acres that we own,

1206
01:33:52,360 --> 01:33:55,360
which is big enough to do a huge development for the years to come.

1207
01:33:55,360 --> 01:34:03,860
potentially, I don't know how our vision is for future growth beyond the end and real, but that's always a possibility as well.

1208
01:34:05,020 --> 01:34:05,320
Thank you very much.

1209
01:34:05,320 --> 01:34:12,320
You know, for sure, in the fact that we are going to have this radio terminal at Rob Stone, basically what means that the industry will come also.

1210
01:34:13,080 --> 01:34:22,020
So, there's a particularly not only for the disco companies to be positioned there, but also is more common effects on companies that will come together with the container terminal to use that location.

1211
01:34:22,020 --> 01:34:26,680
What also means that we've thrown that location because we have connections to the three

1212
01:34:26,680 --> 01:34:31,400
class ones, we're officially connected from Canada all the way down to Mexico, so it really

1213
01:34:31,400 --> 01:34:33,580
explains the interlion of the port.

1214
01:34:35,440 --> 01:34:36,300
Thank you.

1215
01:34:36,820 --> 01:34:37,760
Commissioner Torres.

1216
01:34:39,420 --> 01:34:43,880
I appreciate the presentation and the video is very exciting to see the possibilities that

1217
01:34:43,880 --> 01:34:44,960
lie ahead in the future.

1218
01:34:45,060 --> 01:34:48,100
I just wanted to understand a little bit about the money part.

1219
01:34:48,460 --> 01:34:53,420
You said there's a $24 million grant and will that grant be something we can get reimbursed

1220
01:34:53,420 --> 01:34:55,340
Is this 11 million from or how is that working?

1221
01:34:55,780 --> 01:34:57,860
Right now the grant is for construction face.

1222
01:34:57,980 --> 01:34:59,100
This is not construction.

1223
01:34:59,100 --> 01:34:59,880
No, this is designs.

1224
01:35:00,000 --> 01:35:07,160
So that's, I don't know if left fee was not infigrant. The design portion can be covered with that as well.

1225
01:35:07,840 --> 01:35:12,780
And I'm happy to hear from her, but just also another question that maybe one or two of y'all can feel.

1226
01:35:13,260 --> 01:35:24,720
So the total cost will include this 11 million plus whatever the 30% that we've already went through and then plus the construction. So what is the total cost for this project?

1227
01:35:24,720 --> 01:35:37,660
Right now, estimates, we are looking at just around 600 million for construction and it's just preliminary estimates at a 30% stage and has including the pipeline relocation portion of it as well.

1228
01:35:37,760 --> 01:35:39,800
And how long will it take? How many years?

1229
01:35:40,160 --> 01:35:52,980
Construction we're looking at part about three years to get the real portion in and of course as we continue with development after that will lead it to further decisions to be made and contracts and negotiate it for that.

1230
01:35:52,980 --> 01:35:57,300
It will say just if I can interject just real quick on on the money piece.

1231
01:35:57,480 --> 01:36:01,860
I think we're a long way from knowing what final cost is going to look like.

1232
01:36:02,440 --> 01:36:06,680
So I think if you look at the at the earthwork and getting the initial tracks laid and those kind

1233
01:36:06,680 --> 01:36:11,560
of things we're talking somewhere in the 400 million range full development of the site 600,

1234
01:36:11,960 --> 01:36:16,280
but we're still very early in the process and we're also very early in the process to

1235
01:36:16,280 --> 01:36:19,440
determine who would pay for what right.

1236
01:36:19,740 --> 01:36:22,420
So depending on how we commercialize that property.

1237
01:36:22,420 --> 01:36:26,600
The other thing we're still the way he's away from is we know how long it would take if we just started

1238
01:36:26,600 --> 01:36:31,280
Let's just go, but that may not be how we sequence this project a lot of it's going to depend on

1239
01:36:32,300 --> 01:36:39,000
Demand from a potential container terminal in the inland port when we for example we we've initially talked to them

1240
01:36:39,000 --> 01:36:46,500
They're like yeah, we want to move everything off-site to this inland rail port when we met with their executives in Charlotte three weeks ago

1241
01:36:46,500 --> 01:36:51,720
They're talking about potentially starting with a significant rail presence near the dock, right?

1242
01:36:51,720 --> 01:36:56,720
that may change the timing of how we sequence the funds. The other thing I will say and I

1243
01:36:56,720 --> 01:37:02,660
mean Cindy can also speak to this if you want to, at that level of funding right, you have

1244
01:37:02,660 --> 01:37:07,180
to be very careful about how we how we laid out those funds to the longer you can sequence that

1245
01:37:07,180 --> 01:37:11,040
out the more you can pay for it with organic earnings. For example, I'm going to be through off about

1246
01:37:11,040 --> 01:37:16,860
$100 million free cash flow a year so that can be a significant contribution to that project.

1247
01:37:17,020 --> 01:37:21,340
We also have significant remaining bonding capacity and so we started kind of those

1248
01:37:21,340 --> 01:37:25,880
conversations with the group that was the lead on our bonds in 2015 and 18 just to kind

1249
01:37:25,880 --> 01:37:31,560
of understand where we are on that. So there's still a lot to be determined on how we

1250
01:37:31,560 --> 01:37:35,960
sequence this and how we roll this out because this is also not only being done in conjunction

1251
01:37:35,960 --> 01:37:40,060
with a potential container terminal opportunity that will figure out over the next 12 months,

1252
01:37:41,260 --> 01:37:46,900
but also how do we rehab and rehabilitate and reconfigure basically an interharpers that was

1253
01:37:46,900 --> 01:37:55,140
designed in 1926 and has dox that were built in 1926 and 1927 and have far out of their

1254
01:37:55,140 --> 01:38:02,780
use of a light that need to be demolished and rebuilt. Our current inner harbor entrance

1255
01:38:02,780 --> 01:38:08,140
right there is constricted and was limited by, you know, not even the harbor bridge, right,

1256
01:38:08,460 --> 01:38:12,920
which is already gone, but the best fuel bridge, which would be before that. So, we have

1257
01:38:12,920 --> 01:38:17,800
a lot of work that has to go on and has to be sequenced out for the next decade.

1258
01:38:18,340 --> 01:38:20,040
And this is just one part of it.

1259
01:38:20,140 --> 01:38:23,420
So I think we're a way from knowing exactly what it's going to cost.

1260
01:38:23,940 --> 01:38:25,940
Leslie, I mean, she can address the grant question if we want.

1261
01:38:26,000 --> 01:38:30,000
I think it's for construction and we've put in for another $80 million grant

1262
01:38:30,000 --> 01:38:32,340
with Department of Transportation for this year as well.

1263
01:38:32,580 --> 01:38:34,920
We were going to seek outside sources of funding

1264
01:38:36,060 --> 01:38:39,280
to the full extent of where we can find those also.

1265
01:38:40,080 --> 01:38:40,200
Yeah.

1266
01:38:40,200 --> 01:38:43,200
So we're pretty intentional and it's a great question.

1267
01:38:43,520 --> 01:38:47,620
Commissioner Torres, we intentionally design out of the grant applications.

1268
01:38:48,460 --> 01:38:53,660
A great example, Fernando mentioned that we were selected for the 24.3.

1269
01:38:53,960 --> 01:38:55,800
Okay, I have a number of wrong sometimes, too.

1270
01:38:56,220 --> 01:38:57,480
24.3 million dollars.

1271
01:38:57,880 --> 01:39:03,880
If we had tied in this 11 million dollar contract into that, he would be about a year

1272
01:39:03,880 --> 01:39:06,380
from even being able to consider this design contract.

1273
01:39:06,380 --> 01:39:09,880
So the collaboration between planning and engineering,

1274
01:39:10,180 --> 01:39:11,800
we keep those design contracts out,

1275
01:39:11,880 --> 01:39:13,380
so we don't tie their hands.

1276
01:39:13,720 --> 01:39:15,820
And frankly, the construction cost so much,

1277
01:39:15,860 --> 01:39:17,120
it's a better use of those funds.

1278
01:39:18,160 --> 01:39:19,320
OK, thank you.

1279
01:39:21,460 --> 01:39:22,500
Commissioner Hoskins.

1280
01:39:24,180 --> 01:39:26,780
In my industry, we use a lot of professional services,

1281
01:39:26,920 --> 01:39:31,840
and I'm always interested in how many hours we're

1282
01:39:31,840 --> 01:39:33,940
billing here, so I mean, this is a big number.

1283
01:39:33,940 --> 01:39:40,160
And so do we love million dollars, is how many million hours are we looking at?

1284
01:39:40,160 --> 01:39:42,600
We have a semester for you on that.

1285
01:39:43,080 --> 01:39:49,140
So this would be an equivalent of 28 full-time employees for the duration of the design,

1286
01:39:49,380 --> 01:39:51,320
for the remaining design.

1287
01:39:52,320 --> 01:39:56,480
In our follow-up, I know Commissioner Olmitia has a question, because that was a good question

1288
01:39:56,480 --> 01:39:58,780
the bankers in the runer asking about cost.

1289
01:40:00,110 --> 01:40:08,530
The initial was an agreement for $100,000 on the first contract. So we've extended this contract. We didn't go out for a bit.

1290
01:40:09,170 --> 01:40:15,450
Just in fairness for making sure we got good pricing. How do we support the fact that the pricing is fair?

1291
01:40:16,150 --> 01:40:22,770
And I say that because I think that's what Commissioner Hoskins is asking us to do and just want to make sure there was a process in place.

1292
01:40:22,770 --> 01:40:35,030
And we have MSAs with consultants, which are locked in rates, and these prices are based on those locked in rates that we have with their original agreement, and we verify that those hourly rates have not changed.

1293
01:40:35,690 --> 01:40:48,830
If they wish to request the change, it has to be done in January, but they have to go to a process to request that from us. At this point, there has been no changes and the current agreements stay in place with the amount of we have.

1294
01:40:51,260 --> 01:40:56,600
And a point of clarity, sir, we negotiate all of our engineering contracts or our engineers.

1295
01:40:56,600 --> 01:41:04,320
Okay, that's what I wanted to make sure that I heard that there was a clear negotiation of a contract based on obviously the scope of services.

1296
01:41:04,640 --> 01:41:08,720
And that we have certainly, certainly, I know we got the staff on hand to be able to do that.

1297
01:41:09,000 --> 01:41:17,660
I say that because one could say that, you know, how did we go from 100,000 to 11 million in terms of this is a significant project.

1298
01:41:17,660 --> 01:41:21,840
Certainly with a very large scope, so you've done your due diligence here as what you said.

1299
01:41:22,180 --> 01:41:28,080
Yes, sir, and there are, I'll call Gates, so the contract is where it is a maximum ceiling price.

1300
01:41:28,520 --> 01:41:34,980
Okay. That is not guaranteed, that's the full fee that 80,000 will get. There's a, there's, there's a, there's additionally,

1301
01:41:35,020 --> 01:41:40,240
our engineering contracts are, can be terminated for convenience at any time.

1302
01:41:41,180 --> 01:41:46,660
So I'll just say if 80,000 is not performing, we have the ability and we'll work with

1303
01:41:46,660 --> 01:41:52,500
on that to terminate their contract. I will say they have been performing well up to 30%

1304
01:41:52,500 --> 01:41:56,120
which is why we negotiate of this additional design contract. That's great and this is not

1305
01:41:56,120 --> 01:41:59,800
about a term. I know they're professional and certainly capable. I just wanted to make sure

1306
01:42:00,880 --> 01:42:05,680
for transparency purposes that was discussed in the draft. Commissioner Lomuthia.

1307
01:42:06,460 --> 01:42:11,500
So I office a lot. I office pretty close to this area and I use that road a lot to it.

1308
01:42:12,920 --> 01:42:15,180
Are you preparing for any roadway changes?

1309
01:42:16,320 --> 01:42:22,400
It does get a little even now, it can get a little frustrating traffic analysis has been done

1310
01:42:22,400 --> 01:42:28,340
for the area by AECOM. Last year they started before school started and traffic counts

1311
01:42:28,340 --> 01:42:32,520
and ended in the second one when school started. So they got in those numbers and some analysis.

1312
01:42:33,460 --> 01:42:38,260
They looked at all the on and off ramps of the text out highways, roadways, the FM rows.

1313
01:42:38,660 --> 01:42:42,020
So we have all that in a report as well and we're considering all that.

1314
01:42:42,020 --> 01:42:44,460
And I assume we could get someone else to pay for that hopefully.

1315
01:42:45,240 --> 01:42:52,380
So yes, so we will obviously be working closely with TechStyle to figure out how the final

1316
01:42:52,380 --> 01:43:00,680
road configuration looks out there, TechStyle has a long standing Robbs Town bypass plan that's

1317
01:43:00,680 --> 01:43:04,100
been on the books for quite a while, but not progressed very far.

1318
01:43:04,740 --> 01:43:07,460
They'll want to take a look at that and how this ties into that.

1319
01:43:07,480 --> 01:43:11,980
But we had TechStyle leadership in last week to start these conversations and make sure that

1320
01:43:11,980 --> 01:43:17,060
all working collaboratively on that. As you know, building new state roads, though, is usually

1321
01:43:17,060 --> 01:43:24,420
at 10 to 15 year. That's why I asked, so that might be too long from a commercial perspective

1322
01:43:24,420 --> 01:43:29,620
for how we want to do this. But we will be looking. One of the advantages of this location

1323
01:43:29,620 --> 01:43:36,520
is its ability to access multiple modes of transportation, multiple efficient modes of transportation

1324
01:43:36,520 --> 01:43:42,320
quickly. So I-77 is part of the I-69 corridor, obviously leads up to I-37

1325
01:43:42,320 --> 01:43:47,580
corridor, which gets you to San Antonio. There is a design that we're not starting

1326
01:43:47,580 --> 01:43:52,760
by our middle, or a environmental investigation of related to I-69 as it

1327
01:43:52,760 --> 01:43:58,200
costed over to go from that site to the freer, where the two legs of I-69.

1328
01:43:59,280 --> 01:44:03,420
Connect, there's a lot of, there's a lot of moving parts here, but we will absolutely

1329
01:44:03,420 --> 01:44:08,280
be working with the state agencies to make sure that the local engineers from TechStyp

1330
01:44:08,280 --> 01:44:10,580
to make sure that we're all in sync on that.

1331
01:44:10,840 --> 01:44:14,120
I think, I think as well, I mean, this is when you look at the whole scope of the project

1332
01:44:14,120 --> 01:44:17,460
from with the land costs to the container port to the real owner of the doc's to do

1333
01:44:17,460 --> 01:44:21,500
it on all these things, you know, and I know we've talked about this many times, this

1334
01:44:21,500 --> 01:44:26,720
to encourage you to watch the cash flow matches the spend because it is, I mean, this

1335
01:44:26,720 --> 01:44:30,880
conceivably could be this whole few kind of tie the whole thing together, really more

1336
01:44:30,880 --> 01:44:33,000
money than the deepening widening.

1337
01:44:33,000 --> 01:44:33,860
Oh, I, yeah.

1338
01:44:34,060 --> 01:44:36,220
So I mean, it's a huge transformation.

1339
01:44:36,900 --> 01:44:39,500
And I, you know, to the extent you match cash flow

1340
01:44:39,500 --> 01:44:41,480
to very exciting.

1341
01:44:41,580 --> 01:44:42,260
Sure, wonderful.

1342
01:44:42,600 --> 01:44:43,040
No, thank you.

1343
01:44:43,040 --> 01:44:44,900
And everything I've seen you guys are, you know,

1344
01:44:45,100 --> 01:44:46,260
but it's a long-term project.

1345
01:44:46,720 --> 01:44:49,180
The ports portion of the deep name winding is roughly 200

1346
01:44:49,180 --> 01:44:50,660
to 225 million.

1347
01:44:50,760 --> 01:44:52,980
We want to have a final number on that for quite a while.

1348
01:44:53,400 --> 01:44:54,640
Poor was in last week also.

1349
01:44:56,200 --> 01:44:58,080
Amazing how long fiscal clothes out takes

1350
01:44:58,540 --> 01:44:59,760
on some of those projects.

1351
01:44:59,760 --> 01:44:59,940
Thanks for watching, and don't forget to like, share, and subscribe to my channel.

1352
01:45:00,140 --> 01:45:14,040
This will do worth that in reality, but we don't know yet what the interest, some of the complexity of it, though, in addition to all the other stuff we've mentioned is the fact that some of this will be backed up by commercial agreements, right?

1353
01:45:14,040 --> 01:45:18,720
So, for example, as a support to container terminal or if you move agriculture out there,

1354
01:45:18,780 --> 01:45:23,040
if you do trends running out there, there will be commercial contracts that will backstop.

1355
01:45:23,460 --> 01:45:28,920
Some of this and some of these projects might get done with, for example, revenue backponds instead of just

1356
01:45:28,920 --> 01:45:31,220
turn a location bonds of the port.

1357
01:45:31,280 --> 01:45:35,140
But then there are going to be other parts, including the initial stages of this radar that

1358
01:45:35,140 --> 01:45:36,780
have no commercial backing yet, right?

1359
01:45:36,800 --> 01:45:41,260
There's going to be earth moving and track lane that doesn't come with any additional volume

1360
01:45:41,260 --> 01:45:51,200
And initially, but will attract additional business and Commissioner Hunter asked earlier about the other potential development opportunities along that road.

1361
01:45:51,260 --> 01:46:00,020
If you look at the road from, you know, from the airport to Rob's town right now there's there is a lot of available space out there that you could see being developed.

1362
01:46:02,080 --> 01:46:07,980
As, as a big inland rail terminal like this attracts warehousing and lightning infection.

1363
01:46:07,980 --> 01:46:14,140
So, there's, we got a big next six to ten years.

1364
01:46:14,440 --> 01:46:18,700
I understand if you've talked to the rail companies and they're very interested.

1365
01:46:19,000 --> 01:46:22,400
They're very aggressively wanting to.

1366
01:46:22,500 --> 01:46:22,780
Absolutely.

1367
01:46:23,700 --> 01:46:24,540
Thank you.

1368
01:46:24,920 --> 01:46:29,200
Just to follow up to here, what you just said, Kent, because I think that's important.

1369
01:46:29,660 --> 01:46:32,260
This has, the rail lines have seen this.

1370
01:46:32,440 --> 01:46:36,420
You put it in front of DEP from a business commercialization component,

1371
01:46:36,420 --> 01:46:40,840
which is good because we've got a scoping that's the shadow only through the eyes of the port

1372
01:46:40,840 --> 01:46:44,900
but certainly through the eyes of development and those that have experience in that.

1373
01:46:46,060 --> 01:46:52,820
So, is there a part of that development component on the 2,500 or 2,500 football fields that lay in this?

1374
01:46:53,160 --> 01:46:57,200
Is there a misumen? Is there any warehousing there? Is that outside the boundaries?

1375
01:46:58,000 --> 01:47:00,240
Because conceptually I've seen it's a little bit of that.

1376
01:47:00,420 --> 01:47:01,220
What does that look like?

1377
01:47:01,880 --> 01:47:05,500
Again, it depends on what the commercial pull is at the time.

1378
01:47:05,500 --> 01:47:09,160
But our initial designs would say that, yes, this would support

1379
01:47:09,160 --> 01:47:15,320
where housing on the site, as well as, I think, you know, we just casually talked

1380
01:47:15,320 --> 01:47:17,000
to some warehouse developers out of war.

1381
01:47:17,340 --> 01:47:20,700
You know, last year, they see great potential for this.

1382
01:47:20,700 --> 01:47:23,140
So the warehouse development, I think, I think you'll be right.

1383
01:47:23,820 --> 01:47:28,540
I think we'll be a mix of warehouses on the port site, unless we find a higher

1384
01:47:28,540 --> 01:47:30,900
and better use for that site.

1385
01:47:31,580 --> 01:47:34,720
And then there will be private development of warehouses, I would think along

1386
01:47:34,720 --> 01:47:38,740
record as well. Yeah, we have some conversation already with somewhere

1387
01:47:38,740 --> 01:47:43,160
as a company. So for example, FedEx of these words, UPS, right? There's a lot of

1388
01:47:43,160 --> 01:47:46,600
interesting that location, especially because if you consider a container terminal,

1389
01:47:46,900 --> 01:47:50,680
they will bring the full container to be basically offload in that location.

1390
01:47:51,080 --> 01:47:55,220
That can go to our house and then basically local director from there, right? So

1391
01:47:55,220 --> 01:47:58,500
there's a lot of pertunence there. Think what I would like to highlight, also that we're not

1392
01:47:58,500 --> 01:48:03,020
looking to only commercial pertunence, but also potential partners to develop code

1393
01:48:03,020 --> 01:48:08,120
developing the, that location. So we, we can have some partners also helping us to share

1394
01:48:08,120 --> 01:48:11,640
the risk of development. Yeah, when you, when you think about our traditional business

1395
01:48:11,640 --> 01:48:17,240
model, right, and I've been preaching this since I got in the seat three years ago is, we're

1396
01:48:17,240 --> 01:48:23,180
a landlord port. So we own and lease property for development. This, this will likely follow

1397
01:48:23,180 --> 01:48:27,900
the same model. I think there will be a series of tenants out there who lease property from

1398
01:48:27,900 --> 01:48:32,920
us and then develop that property. There may be some base infrastructure, just like we build

1399
01:48:32,920 --> 01:48:39,200
public oil the Ox currently. But for the most part, these will be backstopped by commercial

1400
01:48:39,200 --> 01:48:43,700
development, who people will be releasing land from us and will have some sort of throughput

1401
01:48:43,700 --> 01:48:47,180
component. I don't think our model changes just to be...

1402
01:48:47,180 --> 01:48:51,760
Well, I think what you're saying, it's a well thought out and planned model, whereby a component

1403
01:48:51,760 --> 01:48:56,440
of this can be used for future development expansion, including warehousing, whereby the

1404
01:48:56,440 --> 01:49:00,300
port of corpus Christi continues to benefit through a ground lease or some other agreement.

1405
01:49:00,300 --> 01:49:07,620
So that is great. I think that's well done and certainly well thought out there and I think there's there's more to come obviously

1406
01:49:07,620 --> 01:49:11,960
As you continue to move forward in this development of this concept as well correct

1407
01:49:13,460 --> 01:49:19,980
So if there are no other questions to have a motion for approval or did I take a motion motion

1408
01:49:21,360 --> 01:49:29,300
It's already been done. I thought just needed to clarify all those in favor. Please say aye any opposition same sign

1409
01:49:29,300 --> 01:49:30,340
Thank you

1410
01:49:34,140 --> 01:49:39,280
Good discussion. Big item. Item 10J. Award a construction contract to make

1411
01:49:39,280 --> 01:49:46,840
old contracting LLC in the amount of 1.3 million 86,588 and a lump sum basis for the

1412
01:49:46,840 --> 01:49:53,040
security, command center, site, and improvement project. Good morning, Chairman of

1413
01:49:53,040 --> 01:49:57,520
Commissioners. Tom's on the while with the engineering department. I'm here today

1414
01:49:57,520 --> 01:49:59,960
so you can approve of towards a construction contract to make.

1415
01:50:00,000 --> 01:50:06,780
Local contracting LLC in the amount of 1.368 or 86 million for the security command site improvements.

1416
01:50:08,900 --> 01:50:16,160
Security command site improvement is located on the corner of Power Street and Water Street as illustrated here.

1417
01:50:17,040 --> 01:50:21,720
A little bit of background, the project overview phase 1 and phase 2 of this project have been completed.

1418
01:50:21,720 --> 01:50:25,520
port PD is operating in the building since June of this year.

1419
01:50:26,320 --> 01:50:30,560
This is the final phase of this project where we're going to secure the exterior of facility.

1420
01:50:31,620 --> 01:50:35,760
The scope of this project consists of reconstruction, reconstructing approximately

1421
01:50:35,760 --> 01:50:40,380
3,200 square yards of pavement, which is a little more than a half an acre.

1422
01:50:40,960 --> 01:50:44,880
We're routing and improving approximately 300 linear feet of underground drainage.

1423
01:50:45,100 --> 01:50:48,420
It's installing a perimeter security fence in system with controlled access,

1424
01:50:48,420 --> 01:50:51,200
and has aerial lighting and camera infrastructure.

1425
01:50:52,540 --> 01:50:56,680
We're going to optimize the egress and ingress by widening the turning radius of the

1426
01:50:56,680 --> 01:51:01,620
parking lot, widening the lots, and increasing the number of parking lots from 50 to

1427
01:51:01,620 --> 01:51:02,080
61.

1428
01:51:03,320 --> 01:51:10,200
Using an in-house seal design, we do have an additive bid item which will restore and seal the

1429
01:51:10,200 --> 01:51:14,280
exterior of the building envelope to eliminate any kind of moisture infiltration.

1430
01:51:14,860 --> 01:51:24,500
The construction is planned for 120 days from the notice to proceed, it will be phase, starting at the north end and then going down to the south end to try to

1431
01:51:25,160 --> 01:51:27,980
to try to minimize the impact on the poor PD.

1432
01:51:30,900 --> 01:51:33,160
In July of this year, we released a solicitation.

1433
01:51:33,520 --> 01:51:38,560
We had 63 companies download the solicitation and we received five bids.

1434
01:51:38,560 --> 01:51:45,420
When the five-bid received, make those bid, came in at 232,000 lower than the next

1435
01:51:45,420 --> 01:51:51,220
Colors' bidder, and make up brings a proven track record to the port, having successfully

1436
01:51:51,220 --> 01:51:56,620
completed the Joe Fulton International Trade Corridor Intersection and proven project, and

1437
01:51:56,620 --> 01:51:58,720
both docked to you, row ready, expansion.

1438
01:51:59,780 --> 01:52:03,240
With that set, staff recommends the award of a construction contract to make a contract

1439
01:52:03,240 --> 01:52:06,740
in the amount of $1,306,580.

1440
01:52:07,020 --> 01:52:09,460
Okay, we have a motion to have a second.

1441
01:52:10,340 --> 01:52:11,640
Second, any discussion?

1442
01:52:12,420 --> 01:52:14,680
Hearing none, all those in favor please say aye.

1443
01:52:15,000 --> 01:52:15,540
Any opposed?

1444
01:52:15,700 --> 01:52:16,120
Same sign.

1445
01:52:16,460 --> 01:52:16,940
Motion passes.

1446
01:52:17,200 --> 01:52:18,180
Thank you.

1447
01:52:18,440 --> 01:52:22,020
The last and final item of the Open Agenda is item 10K.

1448
01:52:22,200 --> 01:52:25,520
A proven increase in contingency and change order with Alfred Palma.

1449
01:52:25,640 --> 01:52:28,260
LLC in the amount of $1.1 million,

1450
01:52:28,260 --> 01:52:34,380
24,948 for the bulk materials, terminal ship loader, and conveyance repairs project.

1451
01:52:34,900 --> 01:52:40,620
Per-negotiated lump sum for items, not in the original scope of the construction project.

1452
01:52:42,780 --> 01:52:47,140
So for this particular project, staff is seeking approval of an increase in contingency

1453
01:52:47,140 --> 01:52:52,380
and approval of a change order with Alfred Palmer in the amount of 1.1.1.2 million

1454
01:52:52,380 --> 01:52:54,820
for the B&T ship loader conveyance project.

1455
01:52:55,640 --> 01:53:00,960
The bottom line of front is that the ship loader is fully functional at this time, so it's

1456
01:53:00,960 --> 01:53:05,940
returning it back to service, it has successfully loaded 7 going on 8 vessels and it's

1457
01:53:05,940 --> 01:53:09,560
functioning with high reliability and increased tonnage per hour.

1458
01:53:09,900 --> 01:53:14,640
Going into this project when you, that this was a high risk, we were going to counter a lot

1459
01:53:14,640 --> 01:53:19,840
of overseen issues mainly because of the lack of record drawings, the age of the equipment,

1460
01:53:19,840 --> 01:53:24,020
and we only had 45 days to complete about 90% of the work.

1461
01:53:25,040 --> 01:53:28,020
So 90% of the work was completed as illustrated here

1462
01:53:28,020 --> 01:53:29,620
for the overall project elements.

1463
01:53:30,540 --> 01:53:34,040
So during that time frame, we were to replace all their electrical components

1464
01:53:34,040 --> 01:53:35,480
as well as mechanical components.

1465
01:53:36,400 --> 01:53:39,200
During the peak of the outage, which we coordinated with the customer,

1466
01:53:39,840 --> 01:53:44,220
we had approximately 150 individuals of various trades working on site.

1467
01:53:44,660 --> 01:53:49,040
So we had about 75 electricians taking care of the electrical upgrades

1468
01:53:49,040 --> 01:53:50,780
as you can see in this picture here.

1469
01:53:50,880 --> 01:53:52,760
This is a new electrical room, which consists

1470
01:53:52,760 --> 01:53:55,400
of a new transformer, a new motor control centers,

1471
01:53:55,840 --> 01:53:57,280
a new variable frequency drives.

1472
01:53:57,840 --> 01:54:02,060
We had mechanics on site, replacing all the motors, gears,

1473
01:54:02,440 --> 01:54:06,240
gear boxes, coupling, shafts, and also ensuring

1474
01:54:06,240 --> 01:54:09,240
that they all aligned precisely to eliminate vibration.

1475
01:54:09,660 --> 01:54:10,920
We had painters on site.

1476
01:54:11,260 --> 01:54:13,640
We had came up, we had crane operators and engineers.

1477
01:54:14,140 --> 01:54:17,360
We also had Cate of Mosley's operation team coordinating

1478
01:54:17,360 --> 01:54:19,140
all this effort as well.

1479
01:54:19,780 --> 01:54:23,240
When the unforeseen mechanical and electrical issues were encountered, the teamwork closely

1480
01:54:23,240 --> 01:54:27,460
to identify solutions, and we completed the work within the outage window.

1481
01:54:29,080 --> 01:54:34,300
Since releasing the ship loader back in the service, we've operated a feedback has been

1482
01:54:34,300 --> 01:54:39,360
an exceedingly positive regarding the improvement performance, reliability and the operational

1483
01:54:39,360 --> 01:54:43,660
capabilities, including the implementation of a wireless remote control as you can see

1484
01:54:43,660 --> 01:54:48,700
here of Bennu Pack that provides greater flexibility and visibility during loading operations.

1485
01:54:50,080 --> 01:54:53,140
With that said, we address the offer seen conditions in Conner Green at 45 day

1486
01:54:53,140 --> 01:54:57,140
outage staff recommends you approve of an increase in contingency and change order without

1487
01:54:57,140 --> 01:54:59,940
for POMA in the amount of 1 million, 124.0.

1488
01:55:02,450 --> 01:55:14,010
It's just making sure it was like I apologize. Thank you Thomas. Who I woke you up there. Do I? Do I? All those, do I have a motion for approval?

1489
01:55:14,530 --> 01:55:22,070
The first and the second. Any discussion? Commissioner LaMatea? Can't remind me the revenue of the bulk terminal?

1490
01:55:23,450 --> 01:55:24,170
or Sandy,

1491
01:55:27,750 --> 01:55:29,270
I just presented it today, right?

1492
01:55:29,430 --> 01:55:31,950
So it should be in your financial report, right?

1493
01:55:32,630 --> 01:55:33,810
I guess I could've looked it up for it,

1494
01:55:33,870 --> 01:55:35,230
but I thought you'd have it on top of your head.

1495
01:55:36,550 --> 01:55:38,230
Well, I mean the only thing you know I'm going,

1496
01:55:38,590 --> 01:55:39,610
we'll get it for you.

1497
01:55:39,690 --> 01:55:41,110
We have no choice to do the repair.

1498
01:55:41,450 --> 01:55:43,610
I understand that, I mean it just continues,

1499
01:55:43,950 --> 01:55:46,290
it's just, yeah, I know you're working on a plan,

1500
01:55:46,530 --> 01:55:47,170
but it's frustrating.

1501
01:55:49,700 --> 01:55:52,120
Kind of a call affectionately refers to,

1502
01:55:52,160 --> 01:55:53,860
this is the gift that keeps on giving.

1503
01:55:53,860 --> 01:55:57,240
So, yeah, okay, just expressing our close question.

1504
01:55:59,020 --> 01:56:03,580
If I make Commissioner back in October, the original repair package was submitted.

1505
01:56:04,100 --> 01:56:07,100
At that time, we had a catastrophic failure with the shiploader.

1506
01:56:07,100 --> 01:56:09,820
We could not load or do anything for our customers.

1507
01:56:10,580 --> 01:56:14,280
So the team worked diligently to expedite the repair process.

1508
01:56:15,100 --> 01:56:19,800
So instead of giving it a full examination prior to the repair taking place,

1509
01:56:19,800 --> 01:56:24,460
We expedited the total repair and some of those items that have been identified recently

1510
01:56:24,460 --> 01:56:31,480
We're not caught on the front side because in an effort to get this thing done in that 45 day window to move product for our customers

1511
01:56:31,480 --> 01:56:33,940
We had to

1512
01:56:33,940 --> 01:56:39,660
We had to take the opportunity not to look at everything but to get as much done as fast as possible

1513
01:56:39,660 --> 01:56:41,720
That's where this change orders come out

1514
01:56:48,220 --> 01:56:52,400
Commissioner Petrotti so I think you answer my question. This works already been done

1515
01:56:53,880 --> 01:56:54,960
is it a course.

1516
01:56:54,960 --> 01:56:55,120
It's a course.

1517
01:56:56,340 --> 01:56:56,420
It's a course.

1518
01:56:56,540 --> 01:57:00,300
A portion of the total repair package work was completed.

1519
01:57:01,040 --> 01:57:05,300
Some items were discovered after the fact, when we started tearing this apart, that we're

1520
01:57:05,300 --> 01:57:08,120
not identified on the front side of the scoping.

1521
01:57:08,520 --> 01:57:09,560
You scoped the work.

1522
01:57:10,080 --> 01:57:11,060
We got it on our way.

1523
01:57:11,100 --> 01:57:15,000
The last thing about this is without the additional thermal shooting fabrication like

1524
01:57:15,000 --> 01:57:15,320
the onboard.

1525
01:57:15,540 --> 01:57:17,520
The ship loader would not have been capable.

1526
01:57:17,520 --> 01:57:29,320
That is we are currently at a substantial completion right now. So we are doing our final walk through and generate an our final punch list prior to final acceptance.

1527
01:57:30,140 --> 01:57:32,520
Okay. So this this change order has not.

1528
01:57:33,360 --> 01:57:38,200
That money had been spent or the work had been done yet we're approving to continue.

1529
01:57:38,200 --> 01:57:46,260
to continue. Yes, a lot of the work has already been done because it was done with in the 45 day outage and we if we're in order for us to

1530
01:57:46,260 --> 01:57:52,180
To meet that window we we track the the work and we we gave the approval. However

1531
01:57:53,720 --> 01:58:00,380
Yes, okay the previously scope to the proof work has been completed and this is new scope of

1532
01:58:01,580 --> 01:58:04,720
items they found later on is what there's so none of the news

1533
01:58:04,720 --> 01:58:07,300
that is correct.

1534
01:58:07,480 --> 01:58:07,680
That is correct.

1535
01:58:07,680 --> 01:58:08,440
That is correct.

1536
01:58:08,440 --> 01:58:09,040
Understanding today.

1537
01:58:11,940 --> 01:58:12,580
Commissioner Thomas.

1538
01:58:13,740 --> 01:58:19,180
Well, this be all of the requested work or do you anticipate additional work after that?

1539
01:58:19,280 --> 01:58:19,700
No, ma'am.

1540
01:58:20,020 --> 01:58:21,040
So it's been functional.

1541
01:58:21,680 --> 01:58:22,900
It's continues to be functional.

1542
01:58:23,640 --> 01:58:28,160
We will we will we will do a final walk through to do the acceptance and then we will close

1543
01:58:28,160 --> 01:58:29,000
up this project.

1544
01:58:29,780 --> 01:58:30,760
You do you have comments?

1545
01:58:31,220 --> 01:58:32,020
Yeah, I'm not just just you.

1546
01:58:32,020 --> 01:58:35,900
had, so in terms of revenues, 14.2 million more or less,

1547
01:58:35,900 --> 01:58:38,660
in terms of revenues, 3.8 million in EBITDA.

1548
01:58:40,160 --> 01:58:40,400
Thank you.

1549
01:58:40,400 --> 01:58:41,920
Mr. President, did I give you enough time?

1550
01:58:42,160 --> 01:58:42,880
Did you have any other questions?

1551
01:58:45,770 --> 01:58:46,150
Yes.

1552
01:58:46,370 --> 01:58:48,450
Commissioner Lamantilla, did that answer your question?

1553
01:58:48,790 --> 01:58:49,350
Thank you.

1554
01:58:49,630 --> 01:58:49,890
OK.

1555
01:58:50,510 --> 01:58:52,990
So we have a motion on the floor, right?

1556
01:58:53,650 --> 01:58:55,770
Or we had a motion taken on the second.

1557
01:58:55,970 --> 01:58:57,550
All those in favor, please say aye.

1558
01:58:58,490 --> 01:58:59,510
Any opposed, same sign?

1559
01:58:59,870 --> 01:59:00,250
Motion passes.

1560
01:59:01,730 --> 01:59:05,390
Next, we'll move to consent item and judges for collective action.

1561
01:59:06,170 --> 01:59:10,570
We have items 11A through 11L.

1562
01:59:10,890 --> 01:59:13,690
Is there any requests to remove any of those further discussion?

1563
01:59:14,950 --> 01:59:16,590
Hearing none, do I have a motion for approval?

1564
01:59:17,630 --> 01:59:18,090
I have a first.

1565
01:59:18,210 --> 01:59:18,870
I hear a second.

1566
01:59:19,590 --> 01:59:21,670
Second, all those in favor, please say aye.

1567
01:59:22,330 --> 01:59:23,810
Any opposed, same sign?

1568
01:59:24,950 --> 01:59:25,510
Item passes.

1569
01:59:26,170 --> 01:59:29,290
Next is chief executive officer's comments, Mr. Kent Britain.

1570
01:59:29,290 --> 01:59:36,490
Thank you, Chairman, commissioners. Good morning, worn out from taking, taking notes. I did

1571
01:59:36,490 --> 01:59:41,950
want to just reflect a little bit on what's going on so far in this meeting. It sometimes,

1572
01:59:42,510 --> 01:59:48,290
it just seems normal to us and, like, of course, a business. But a little, when you look

1573
01:59:48,290 --> 01:59:54,290
back at the list, it's kind of stunning to see the breadth of what we just did in the last,

1574
01:59:54,290 --> 01:59:58,770
But in the last two hours, fiscal oversight and transparency.

1575
02:00:00,340 --> 02:00:23,580
Approved 22 million dollars of large infrastructure, execution and engineering, active collaboration and engagement with the city of Corpus Christi on large infrastructure projects, community engagement, particularly in our local school systems, investigation and deployment of innovative and leading edge technology, and the marketing and vision for the future of this port.

1576
02:00:24,460 --> 02:00:44,100
That's a pretty, that's a pretty productive meeting, if you ask me, so well done, appreciate all of your attention to detail and I know there's a lot of prep work that goes into getting through this binder in the five or six days that you have all that information beforehand, so appreciate all that you do for us and for this community.

1577
02:00:44,740 --> 02:00:51,840
Few items I did want to mention and Monique will get a notice out. Tomorrow there is a state of legislature.

1578
02:00:52,900 --> 02:00:55,220
Being held by the Iranians past Chamber of Commerce.

1579
02:00:55,500 --> 02:00:57,100
Believe it's at the Portland Community Center.

1580
02:00:57,300 --> 02:01:00,100
We do have a table there if anybody wants to join us.

1581
02:01:01,220 --> 02:01:03,600
State of Energy is on the 20th.

1582
02:01:03,920 --> 02:01:07,980
So that's Thursday. We do have quite a few seats for that.

1583
02:01:07,980 --> 02:01:13,240
mean way would like to come see that I believe Mike Howard is the keynote speaker for that should

1584
02:01:13,240 --> 02:01:18,800
be should be really good. Portland Chamber of Commerce on the 27th next week and a several

1585
02:01:18,800 --> 02:01:25,360
loaves will be gone but they are doing state of industry and we have a table there and then

1586
02:01:26,220 --> 02:01:32,520
on the 9th of September A&M Corpus Christi Foundation will be doing the A&M Corpus Christi State

1587
02:01:32,520 --> 02:01:37,340
of the University and we have a couple of tables out there if anybody wants to join for that.

1588
02:01:38,680 --> 02:01:44,500
On the government fair side, we are hosting Secretary of Transportation Duffy tomorrow, which

1589
02:01:44,500 --> 02:01:50,000
is a pretty big deal, that's going to be too sitting cabinet level members and the President

1590
02:01:50,000 --> 02:01:52,660
of the United States that's been here this year.

1591
02:01:52,820 --> 02:01:56,300
I call that a pretty productive year for our pork.

1592
02:01:56,560 --> 02:01:57,760
We are getting started now.

1593
02:01:57,980 --> 02:02:04,980
It is time to start thinking about 2027 legislative session for the state, so we have been

1594
02:02:04,980 --> 02:02:10,460
I mean, some meetings around that and talking about what legislative agenda not just for us,

1595
02:02:11,120 --> 02:02:13,540
but ports in general in Texas might look like.

1596
02:02:15,400 --> 02:02:20,600
The Chamber, Al mentioned that they hold business events with small businesses on how to

1597
02:02:20,600 --> 02:02:23,780
do business with various organizations.

1598
02:02:24,140 --> 02:02:30,220
We are having one in October, so it's Tuesday, October 27th, that 10 o'clock, how to do business

1599
02:02:30,220 --> 02:02:35,040
with the port that's being done in conjunction with Delmore College Apex Accelerator.

1600
02:02:35,220 --> 02:02:39,460
I'll mention that each month as we lead up to that, but that's an important time for

1601
02:02:39,460 --> 02:02:44,280
small businesses to come in and understand all the processes that go into being able to

1602
02:02:44,280 --> 02:02:46,260
bid and do business here.

1603
02:02:47,260 --> 02:02:53,100
There were a few new employees that joined the port since the last port commission meeting

1604
02:02:53,100 --> 02:02:57,700
Carina Tordova joined the port on July 27th as a community relation specialist

1605
02:02:58,820 --> 02:03:04,660
Eric of all this joined the port as a safety training specialist on also in July 27

1606
02:03:05,340 --> 02:03:09,700
On August 10th Raven Hernandez joined the port as a facility services worker

1607
02:03:10,520 --> 02:03:15,080
And on August 10th Richard Gutierrez joined the port as a maintenance worker

1608
02:03:15,080 --> 02:03:19,020
We welcome all of those folks to the port and then

1609
02:03:19,020 --> 02:03:24,440
And one of my favorite things to do every quarter, and it feels like I just maybe did it

1610
02:03:24,440 --> 02:03:25,000
last month.

1611
02:03:25,720 --> 02:03:26,200
But it wasn't.

1612
02:03:26,360 --> 02:03:30,620
It was three months ago, is the announcement of our seaport star, so in this case, it's

1613
02:03:30,620 --> 02:03:31,940
for the second quarter.

1614
02:03:32,800 --> 02:03:36,460
And please join me in congratulating Crystal Remaris, and I'll tell you a little bit about

1615
02:03:36,460 --> 02:03:37,280
Crystal on the second.

1616
02:03:43,820 --> 02:03:50,120
So crystals are lead payroll specialist, consistently models are seaport values and exhibits

1617
02:03:50,120 --> 02:03:51,260
leadership and commitment.

1618
02:03:51,260 --> 02:03:57,680
She understands the utmost importance of safety, she knows people depend on her both professionally and personally.

1619
02:03:58,400 --> 02:04:04,560
Crystal was invited to serve as a culture champion within our organization and of course accepted that challenge.

1620
02:04:05,620 --> 02:04:13,080
Even while she was deeply involved in the lengthy and time-consuming time and attendance and payroll upgrades that we did recently to NeoGo.

1621
02:04:13,800 --> 02:04:19,520
In addition, she continued her normal payroll duties by helping to ensure that all employees are paid properly and all time.

1622
02:04:19,520 --> 02:04:27,760
So, where we have Crystal come up and get a picture with you guys, Crystal, who would stand up and let's thank her once more, and that's it for my comment.

1623
02:04:33,130 --> 02:04:33,990
Thank you, Crystal.

1624
02:04:35,350 --> 02:04:44,190
Seeing that that's it for comments, we will, we'll, we'll, we'll, I'll ask the commissioners to stay for, for photos, but we'll go into closed meeting notice,

1625
02:04:44,190 --> 02:04:46,130
into executive session.

1626
02:04:46,450 --> 02:04:48,310
Port Commission will now go into closed meeting.

1627
02:04:48,610 --> 02:04:53,670
pursuant to sections 551.071 and 551.072.

1628
02:04:53,910 --> 02:04:58,670
Of the Texas government code to deliberate agenda items 13A through 13D.

1629
02:04:58,690 --> 02:04:59,210
Thank you.

1630
02:06:49,900 --> 02:06:55,040
All right, we are back in session. Make sure everyone's seated. Thank you.

1631
02:06:56,820 --> 02:06:57,520
Let me one second.

1632
02:07:09,550 --> 02:07:15,590
Item is approval for a approve of resolution. Six-wordless state contracts between the

1633
02:07:15,590 --> 02:07:19,710
Port of Corpus Christi and Oasis County Texas, as part sure with various owners and sellers

1634
02:07:19,710 --> 02:07:25,750
authorizing executional contracts related to closing documents, related to land under contract noise,

1635
02:07:25,750 --> 02:07:29,230
County and a pretty matters related there too. Do I have a motion?

1636
02:07:30,050 --> 02:07:35,570
I have. Here in a first and a second. All those in favor say aye. Aye. Any opposition?

1637
02:07:36,350 --> 02:07:41,710
Motion passes. Last item 14v is approval of an engagement letter with blank

1638
02:07:41,710 --> 02:07:46,230
room regarding federal maritime commission regulatory matters. Do I have a motion?

1639
02:07:46,410 --> 02:07:51,890
Motion. Second. Any discussion? Hearing none. All those in favor please say aye.

1640
02:07:53,250 --> 02:07:54,430
Aye. All those opposed same sign?

1641
02:07:54,430 --> 02:07:57,470
Motion passes. Do I have a motion to adjourn?

1642
02:07:57,930 --> 02:08:01,130
First, second, we're ready to go. Thank you.