[0:03] Okay, it's 8.30, Tuesday, May 24, 2022, and I'm going to call this meeting the Board of

[0:09] Corps of Screasy Authority of New Aces County, Texas, to order. First item on the agenda is a safety briefing.

[0:22] Good morning. We are meeting at the Ortiz Center located at 402 Harbor Drive. The phone number is 361-879-0125.

[0:34] The restrooms are located throughout the ballroom by the exit doors, as well as outside the room

[0:38] along the hallway in the conference center portion of the building.

[0:42] The fire extinguisher is located in the main hall of the conference room center and by the exit doors.

[0:49] Please take a moment to locate your nearest fire extinguishers.

[0:54] The AED is located in the lobby by the Ortiz Center staff office.

[0:59] Participant responsible for dialing 911 will be Chief Tommas, Assistant Chief Tommas.

[1:09] participants who are CPR certified are myself, Chief Giannamore.

[1:16] In case of evacuation, egress route will be out the double doors.

[1:22] The master point will be in the parking lot under the bridge.

[1:26] In case of the need to shelter in place, we will remain in the building and await further

[1:31] instructions from our port police department.

[1:35] Thank you.

[1:36] Thank you.

[1:38] This morning, I'm going to ask Commissioner Ball, I mean Commissioner Engel to lead us in

[1:43] the Pledge of Allegiance, and we're pleased today to have Pastor Pamela Dijkhaus, who's

[1:49] with First United Methodist Church, and I believe you're the first woman that's ever given

[1:55] the invocation for us, so we welcome you this morning.

[1:57] I

[2:01] pledge allegiance to the flag and to the Republic for which it stands, one nation under

[2:09] God, indivisible, with liberty and justice for all.

[3:15] Direct them by your spirit of wisdom as they consider today's agenda items.

[3:20] Thank you, God, for the generous service of the members of this commission and for all public

[3:25] servants.

[3:27] Grant them humility and perseverance as well as a sense of fulfillment and reward in their

[3:32] work.

[3:33] We thank you for this unique coastal bend area.

[3:37] It's precious resources of land, sea, and air

[3:40] and the beautifully diverse and capable people who live, work, and visit here.

[3:45] Thank you, God, for this time that is ripe with possibilities for our region.

[3:50] And thank you for our Port Commission and the opportunities they have to make a positive difference.

[3:56] With your help, O God, may we work together across this region in ways that honor you.

[4:00] As we approach Memorial Day next week, we give you thanks for all who've served our country,

[4:05] and especially those who've given their lives for our freedom. Amen.

[4:14] Any commissioners have a conflict of interstatement? I have turned one in on item 10c.

[4:27] Next item on the agenda is to approve the minutes of April 19, 2022. They were previously submitted,

[4:32] or are there any additions or corrections?

[4:35] Here in none, I'd entertain a motion

[4:37] that they be approved as submitted.

[4:39] So moved.

[4:40] Is there a second?

[4:42] I've moved and seconded any discussion.

[4:45] Here in none, all in favor signify by saying aye.

[4:47] Aye.

[4:48] All opposed, the same sign and the motion carries.

[4:51] Item 6b is to approve the minutes of the May 2nd, 2022,

[4:55] special meeting of the Port Commission.

[4:57] Again, these were previously submitted

[4:58] or are there any additions recorded?

[5:00] Corrections. May move that they've been approved as presented. Is there a second? Second. They've been moved and seconded in any discussion. Here, none. All in favor, second, five are saying aye. Aye. All opposed. The same sign. The motion carries. On public comment this morning, John Phillips with the Coastal Man Regional Advisory Council.

[5:30] I would advise you we have three minutes and we cannot respond.

[5:34] I can definitely talk for three minutes.

[5:38] Good morning.

[5:39] Appreciate the opportunity to speak to everybody this morning.

[5:42] I can bring you the commission and work staff administration.

[5:45] I need to join Philips on the Chief Operating Officer

[5:47] for the Coastal Bin Regional Advisory Council.

[5:52] We help provide mitigation and response

[5:54] in the healthcare sector for 19 counties,

[5:58] the Southern 19 counties of Texas,

[5:59] is from Robstown to Laredo down to the border and Brownsville.

[6:06] What we try to do is we administer some federal and state grants in this region to help

[6:12] standardize or base level of care for all the citizens close to 5 million in this area

[6:20] and help better the health and safety of that region.

[6:23] We work with local hospitals, emergency management, EMS, fire departments, agenda item 11-I, we're looking forward to your approval on.

[6:34] And that's some office space in the Port Annex.

[6:38] This will allow us to expand some of our operations and expand those programs.

[6:43] Again, we want to say thank you to the Port Administration and staff, Daniel Hill, Julio Dimas.

[6:47] We're working with us on this and look forward to your approval.

[6:51] Thank you.

[6:51] Thank you, sir

[6:53] John McComb

[7:09] Thank you, Mr. Chairman

[7:11] I'll talk as fast as I can in three minutes from the bill goes off

[7:14] I've got copies of what I know and say

[7:16] Give them the lady in the white dress over there and she'll pass that out to the commissioners

[7:24] Mr. Chairman and commissioners

[7:27] I know each of you to some extent

[7:28] Chairman Zon and I have known each other

[7:31] Been friends for over 40 years

[7:33] I know it's over 40 Charlie

[7:35] because I was first elected to the City Council in 1983.

[7:37] I met a very nice lady by the name of Dorothy Zahn,

[7:41] who's Assistant City Secretary.

[7:43] One of the first questions I asked her was,

[7:45] you're related to a fellow named Charlie Zahn.

[7:48] With her beautiful smile, she said, yes, I am.

[7:54] During that thermal city council,

[7:55] I began my educational journey into the water supply issue

[7:58] and the city of Corpus Christi and the coastal bend were facing.

[8:01] With our solar source of water being like Corpus Christi,

[8:04] After having to implement water rationing, the Council began to chart a path in securing

[8:08] additional water supply to make sure that would never happen again.

[8:12] That term on the Council was the most difficult for me in my 24 years as an elected official.

[8:19] I'm here to address my concerns, heartfelt concerns with the Port of Corpus Christi resolution

[8:24] which had passed on April 19th, 2022 and followed with your white paper on the 5-2 vote on May

[8:30] the 2nd 2022. I have concerns with both. However, Mr. Strawberry, just comments in the

[8:37] color times on May the 20th, shadow the intent and the purpose of your resolution. As to

[8:42] the white paper, it does not identify the author, not I want to know. I'm more interested

[8:46] in what it says than who wrote it. The paper lacks, in my opinion, knowledgeable and knowledge

[8:54] and understanding of the city's pursuit of obtaining an additional water supply. I want

[8:58] to applaud Merrill Harlow and the City Council for their continued support of their decolonization

[9:03] project and their response to the resolution by the port.

[9:07] But first, I'll give you some history that led up to the Fiasco that we're experiencing

[9:11] now.

[9:13] On September the 6th, 2018, CEO, Strawbridge, Central Letter to Mr. Keith Selman, this interim

[9:20] city manager of the Corps of Christy, and it states, at a special commission meetings

[9:24] September 5, 2018, the commissioners instructed me to present the following alternatives to the city for consideration.

[9:33] One, the Board transfer the TPDES permit application to the city immediately for the city to complete.

[9:39] Two, the Board assigns a TPDES permit to the city immediately upon receipt or three, the Board withdraws a TPDES permit application and

[9:47] Council supports permitting efforts.

[9:50] My request written direction from the city on which of these alternatives the city prefers.

[9:55] The Port Authority has no preference on the location of any decolonization plan.

[10:00] So objective is the uninterruptible water supplier for the ports current and future industrial customers. Please let us know as practical as possible. You want the city to with. Tell me you want the port to withdraw the transfer or the transfer of the application. Nine days later, Mr. Selman responded.

[10:19] In our prior studies and meetings with our industrial stakeholders and consultants, we considered building a desalination plan on Harbor Island, but concluded that this was not the best location for our needs and that of our industry.

[10:31] Therefore, the city of Corpus Christi is not interested in the port pursuing the D. P. D. S. Permit for Harbor Island to meet our needs.

[10:42] We believe it would be in the best interest to both parties to enter into a memorandum of understanding as soon as possible in the event.

[10:47] The port's looking to terminal site is determined to be the best location for the city.

[10:51] The legal department will draft and forward you an MOU in the immediate future.

[10:58] No, Joe, I'm sorry, your time is up.

[11:00] All right, well, I just wanted to get that started and the rest of my comments are in a letter.

[11:06] They're very heartfelt, and I think, and I hope that after you get the information,

[11:11] if you have any other questions, I'll be happy to address them, or whatever decisions you make.

[11:17] I hope they're in the best interest of the port, the city of Corpus Christi.

[11:21] And I thank you for your time.

[11:22] Thank you, thank you.

[11:24] Thank

[11:31] you, Mr. Chairman and commissioners, I'm Ray Allen, executive director, at least for a few more months of the coastal bin bays and estuaries program.

[11:39] I'm here to address item 11G on your consent agenda, which is the in kind lease for space over the old engineering annex building.

[11:47] We like to call it our original home because that's where we really started up as a non-profit

[11:54] We're excited to move back into that building back into the essentially the same space we had

[11:59] We we appreciate that very much. I'll just say this. We're in what used to be called the Wells Fargo building and

[12:08] Hopefully those air-conditioning parts will get here in the next 60 days

[12:11] So I can tell you as it is not comfortable over there on hot days

[12:16] So we're glad to do that.

[12:18] We spent a lot of time working with Port Staff, specifically Julio Dimas and his folks and

[12:26] what a great team here at the Port to work with.

[12:30] And we are looking forward to moving back in there.

[12:32] So we appreciate your support for item 11G on the agenda.

[12:36] Thank you.

[12:37] Thank you, Ray.

[12:39] Judge Canales.

[12:56] Good morning.

[12:57] well, sometimes timing is everything in life. I came on a different matter, but I understand

[13:04] that that needs to be delayed now. I will return at your next meeting to talk about the wonderful

[13:10] project that the port and the noises counties embarking on with the breakwater islands living

[13:15] shoreline project in order to make certain that we not only have excellent water quality in our

[13:20] base. But also to really see if oysters can develop and foster. The most important thing

[13:28] that project will do is mitigate wave energy for future storms. And as the emergency manager

[13:34] of Voices County, I thought that would be an excellent discussion to have. However, I

[13:38] walked in right about the time where honestly, if I could have stood up and just, you know,

[13:45] what? As the emergency manager I have dealt with every single crisis that you can

[13:52] possibly imagine in the last two and a half years and the next one my friends

[13:56] will be drought. We already know I've sat in that chair right where Miss

[14:01] Hillier it is. Eight years ago to talk about the need for a water committee the

[14:07] need for reliable, sustainable, poor, a price, and concept for water in our community.

[14:16] I wholeheartedly agree with both the city and the port who understands that water, my

[14:23] friends, will be more valuable than oil in our future.

[14:27] But what I also know is that this discourse must stop, and I look at each and every one

[14:34] of you and ask you to make it stop, bring us together as a community.

[14:41] If you do not, you are defying the very oath I gave you from this bully pulpit.

[14:47] Go and read it.

[14:49] The oath that you took asked you to defend the laws of the Constitution and the laws

[14:54] of this state and you have a duty to this port and this port has customers, this port

[15:00] This is one out of every three jobs in our economy. This port is the lifeline to everything happening

[15:07] in the world on geopolit- on the geopolitical stage. And you risk everything, everything

[15:15] by allowing misinformation, the hatred that's going on in our country has permeated into

[15:23] our area. Please stop. Do what is right. We have an amazing staff, a leadership that is

[15:32] renowned all over the world. It's only in our own backyard where we like to eat our own.

[15:40] I just stopped Mayor McComb and I asked him for a comp for those comments. He said,

[15:43] Barbara, I've been working on water. We have been working on water here at the Port of Corpus

[15:48] Christy for years and we believe that science will drive the best decisions and I can tell

[15:55] you from my work with the breakwater with the hard institute that inside that inner harbor

[16:03] is the worst place for a second decal permit because we already know that the science tells

[16:09] us that there is a lack of water exchange that hypoxia and anoxia will occur and how are

[16:15] we're going to discuss oysters in the bay if we're going to drive salinity with no water

[16:20] exchange.

[16:21] You have made good decisions, stick to them, prepare and defend this port, this economy,

[16:29] these jobs, and our water supply.

[16:32] You're worried about a comment, a comment that happened to have been the truth?

[16:38] Well, I need you to step into my shoes.

[16:40] How would you like to be lied about every single day in a rag trash magazine?

[16:44] I guess you wouldn't take that very well.

[16:50] It's time for truth to win. It's time for people

[16:54] to have courage. You're a political appointee and you serve at the pleasure of. So guess

[17:00] what? Stand up, be strong, and fight for what's right. And if somebody criticizes you, well

[17:08] good. Then you know you stood for something. You can't take the heat. Well, the Camille

[17:15] is only on low right now my friends. What happens when it gets hotter and hotter? I'm disappointed.

[17:24] Judge, I hate to do this. It's all right. You did it to Mayor McComb. I could go on. All I can say

[17:30] is that you are doing the right thing and you are using the right technical, appropriate processes and

[17:37] methodology. And everything that I just heard, honestly, I'm a guest. I want

[17:46] to come back and I want to talk about the good stuff, but clearly, clearly, it's

[17:51] time to get back on the front lines. Thank you, Judge. On committee reports, Mr.

[18:00] Enkel, about it. We did not meet, but we do have several items on the agenda that I

[18:06] I think Kent's going to brief all of us on,

[18:08] but the audit committee did get all this in advance

[18:11] and we have no questions or issues,

[18:13] but we do want Kent to kind of give us a cliff notes version.

[18:17] Thank you.

[18:17] All right, long range planning, Commissioner Golly.

[18:21] Yes, we didn't meet as well because all of us were in Israel

[18:27] a busy desalination plant.

[18:29] So we got some interesting stuff done

[18:32] and we learned a lot but we didn't have a meeting yet.

[18:34] We'll have one soon.

[18:34] Okay. Security.

[18:38] Same. Our meeting set for June the 8th, Mr. Chairman, and we'll play catch up.

[18:44] Okay. Commissioner Hoskins?

[18:47] We've not met them.

[18:48] Okay. Same.

[18:50] Okay. At this time, we're going to presentations. We receive a presentation

[18:54] from John Valls, Executive Director of the Robstown Area Development Corporation.

[19:07] Good morning. It's really difficult to follow the judge after that speech.

[19:10] So, I got my friend David here, y'all recognize him.

[19:15] I think David's just back up here for another send-off celebration, but David actually serves

[19:20] on our board at the Ropstown Area Development Commission.

[19:22] I want to thank Chairman Zahn and members of the board commission.

[19:25] My name's John Valls.

[19:27] I have the pleasure of serving as the executive director of the Ropstown Area Development

[19:31] Commission.

[19:34] Mr. Gettys serves on our board currently.

[19:37] And I just want to give you a brief update of some of our activities recently.

[19:41] I know you'll have a very full and lengthy agenda, so I'll be brief.

[19:45] We recently had ribbon cutting of our new office that we have located in the former outlet

[19:51] mall.

[19:51] Now it's called the Crossroads, and I want to thank the port staff who participated representing

[19:57] the port out there.

[19:57] and I want to thank Mr. Strawbridge and

[20:00] And Mr. Omar Garcia, for being very supportive and Mr. Rosicolene for helping to craft the contract that we have with you guys now. And I want to thank Rosara. She's here somewhere, I believe. And she's our staff liaison. And she's been very instrumental in helping me to deliver all of what we need to deliver to the port. So as I said, we have a new office in the former outlet mall. Now it's called the Crossroads District.

[20:27] They were kind enough to donate an office to us and we're out there promoting that facility along with a lot of the activities that are out there in the Robstown area.

[20:37] As I mentioned, Mr. Getta is now the port representative on our board and we have met several times already and get him up to speed on some of the activities we're working on and some of the future activities that will be undertaking.

[20:49] Mr. Martinez is also on my board.

[20:52] Our board chairman, Jay-Jackie Minnes, senses regrets he was unable to be here today.

[20:57] So some of the members of our board, a few of the things that we've been working on that relate to the port is that last year we were the only organization where our board passed a resolution to support the legislation that the county put forward.

[21:12] For the, on behalf of the port, we're in support of the port's activities out in the western part of the Wases County.

[21:18] I don't recall any of the organization that passed a resolution in supporting that.

[21:22] We forwarded that resolution to the members of our local delegation.

[21:26] And so that's one way in which we have been supporting the port.

[21:30] We've met with a few companies that are prospecting the area, hydrogen technology ventures, is looking

[21:36] at a facility in the former Patriot wind farm out there near bishops just beyond rough sound

[21:42] borders.

[21:43] But they're also looking at a site here on port property.

[21:46] So, we're working with those folks, and I keep in contact with Eddie Martinez in your

[21:50] business development office for opportunities that we might be able to assist in supporting

[21:55] the port as they travel, or they meet with potential companies looking at located in the

[22:01] area.

[22:02] A few things closer to the Robstown area, we're really close to developing or having developed

[22:10] an RV sales and service center, just south of Robstown on 77 or I-69 now.

[22:16] Now we've met with a group out of Florida that is looking at developing that facility and oddly enough a perfect timing just across the interstate there is another developer who's looking at developing a comprehensive RV park where folks can can stay there for a lengthy amount of time so almost literally across the interstate, you'll have a sales and service center and then you'll have an RV park so we're working closely on that project as I mentioned the outlet mall has been a partner with us and as you probably all know there's not a whole lot of

[22:46] activity going out there, but we are working on a couple of retail projects for the outlet mall, and we're just trying to, you get more activity out there.

[22:56] Mr. Martinez, do you have anything to offer?

[22:59] I think he's looking for another certificate or plaque, so but thank you.

[23:05] But that's really all I have right now.

[23:07] I have extensive activities that I share with Mr. Getta, but I know you guys have a lengthy agenda and many things to discuss.

[23:14] So I just wanted to give you a snapshot of some of the things that we're working on and we appreciate the partnership and I want to especially thank Mr. Omar Garcia and Rosie for helping us to develop our own agreement with the poor commission because before we had a partnership agreement with the Robstown Industrial Development Corporation and now we have separated that agreement and you guys approved that last December so anything we can do to assist in the Robstown area we're more than happy to and I work closely with Mr. Getta who represents

[23:44] and then I'm in frequent contact with Mr. Omar Garcia.

[23:48] So I'm happy to take any questions.

[23:50] If not, that's kind of a snapshot of where we are.

[23:52] And you can see some of the port folks

[23:54] that attended our ribbon cutting.

[23:56] Liscon too was there and a few other folks.

[23:58] So we appreciate them representing.

[24:00] So Commissioner Hoskins.

[24:03] My family was involved with an RV park.

[24:06] So I kind of understand some of those things,

[24:08] how they work.

[24:09] Okay, we need to have how many RVs go up and down.

[24:12] 77, is there been a study or anything?

[24:13] I think it's a great location, but I just wonder if it's any traffic.

[24:17] It is.

[24:17] I don't have a number of text.

[24:19] I don't, they don't categorize them like that because I've talked to text.

[24:23] All they do is a vehicle count.

[24:25] The last vehicle count was 29,000 a day that passed through the intersection at Driscoll, at

[24:33] the former I-77 and 665, but now they have the bypass, so it's even greater.

[24:39] But there's probably 50,000 vehicles that are passing there, they don't categorize it by class of vehicle, unfortunately.

[24:47] But there's a reason that this Optum RV is a group out of Florida is looking at, we keep calling it Highway 77, but I-69 is a great location to not only sell RV.

[25:00] Please, but to service them because apparently there's a lot of them going down to the valley and then coming up, coming returning back. Any other questions or comments? John, thank you for being here. We appreciate our partnership with you also. Thank you, chairman. Appreciate that. Thank you, everybody. I just want to make a couple comments. First of all, I want to thank you, John, for your leadership as the executive director. PD, it's good to see I knew you come back. I didn't realize it was going to be so soon, but it's always good to see you.

[25:29] I want to see you back and have your leadership in this community.

[25:34] Commissioners, as you know, there was a piece of legislation that the county carried in the last legislative session that didn't get out of committee, but it was targeted at helping Robstown, and what I want to message is that irrespective of legislation or not, the Port of Corpus Christi staff, and certainly the commissioners and now into the leadership of Commissioner Garra who sits on your board.

[25:58] We're absolutely committed to the further economic development of Robstown.

[26:03] I've had many meetings with your city manager and your mayor.

[26:07] We know that Chairman Herrero, Representative Herrero, that's his hometown.

[26:16] He represents most of the port of Corpus Christi sits in his district, so we certainly have

[26:21] that connection to Robstown.

[26:23] And I think what you'll see, John and David in the coming months, you'll see more activity

[26:27] from the port in the Robstown area, so we certainly look forward from a staff perspective

[26:32] sitting down with you and talking about what our vision is and those plans and how we

[26:37] can be helpful.

[26:38] We appreciate that, Mr. Roberts.

[26:40] Thank you so much.

[26:41] Thank you, Mr. Chairman.

[26:41] Thank you, Mr. Commission.

[26:43] Thank you.

[26:45] Okay.

[26:45] At this time, the port commission is going to go on to a close meeting, percent to Section

[26:50] 551074 of the Texas government code to deliberate the duties of the Chief Executive Officer

[26:56] your item 13A.

[30:03] Okay, it's 10-10 and we're going to reconvene in regular session. And the next item on the agenda, I believe, is 9-B, which is receiving LNG ship model from God Nichols corporate marine director for shinier LNG at O&M.

[30:24] You're not God Nichols.

[30:29] Welcome back, John.

[30:42] To be back at my favorite port authority. But my name is John Pash. I've been with the shinier on the north side of the bay.

[30:50] And with me today is Captain Guy Nichols.

[30:54] He's going to make a presentation in a few moments.

[30:56] He's our Director of Corporate Marine Operations.

[31:01] And we're here to celebrate the relationship with the Port Authority, the Pilots Association,

[31:08] the Harbor Master's Office, engineering, and many of the folks in here that have just made the last six years.

[31:14] Just a time to step back, appreciate this relationship and just celebrate for a few moments.

[31:21] I have a few slides that I'd like to share with you.

[31:24] And then we'd like to make a presentation to you on the heels of our 500th cargo.

[31:33] So it has been a very good, unique relationship with all the folks that we've just talked about.

[31:40] and it really speaks very well I think about the port authority and how well

[31:44] business is done here in South Texas. Seven years ago it was a green space over on

[31:49] that side of the bay and so much has happened and changed for the good for our

[31:54] company and I think for the people of South Texas and for the world as well as

[31:58] we're changing geopolitical considerations especially in light of what's going on

[32:04] in Europe. I have five slides that highlight what's happened here. Our first cargo was December

[32:11] 2018, and that was the Maria Energy. A fast forward a few months later is our first night transit,

[32:20] and as you may recall, ships of this size were not even allowed into this port at that time,

[32:25] and it was the partnership with the US Coast Guard and the Pilot Board Commissioners,

[32:30] the Pilots Association, Captain Mike Kershaw was crucial on that, but we now are able to move the

[32:36] ships which benefits everybody here in the port. That was December 2019, fast forward a couple more

[32:42] months, shinier energy with our other partner up in the Port Arthur area. We've celebrated our 1,000th

[32:50] cargo in January 2020. About six months later, the gas law Warsaw was our first cargo that came to

[33:00] for EastJetty. So we have a WestJetty and an EastJetty now that can handle these vessels.

[33:06] And then another milestone working very closely with the Harbor Master's Office was actually

[33:11] using both of these births to bring a couple of these monster ships in. To put it in perspective,

[33:18] one of these ships, about 900 feet, a thousand feet long, carry enough energy to power the

[33:24] The residential demands of Corpus Christi for about six months.

[33:28] So it's just a huge game changer for the world.

[33:33] And the other thing that I would point out is this was all done in the past couple years during the pandemic.

[33:39] Working very closely with the Seafarer Center, the Port Authority, and

[33:43] just having so many people involved vaccinating these crewmen with the Texas National Guard just to keep commerce flowing.

[33:50] We never had one outbreak at our terminal, none of the ships ever had an outbreak with the

[33:55] COVID as well.

[33:56] So again, just working great with the Coast Guard Portic Commission and all the other folks

[34:02] that are involved.

[34:04] This, that stuff in the background is fog, and that was actually the ability to bring in

[34:09] two ships at once through the fog through a very tight window.

[34:12] Again, pilots' association just really shined and just speak very well for how well things

[34:19] run down here.

[34:19] But, and this is the final slide.

[34:23] This shows our, just a few days ago, last weekend, we celebrated CCL's or Corpus Christi's

[34:30] 500th cargo, and we have a couple of armoring coordinators breaking bread with the captain.

[34:35] These guys setting up their kind of stiff and staunch at the end of the table, and with

[34:40] the rest of the crew.

[34:41] But it's been a wonderful time.

[34:44] We've been meaning to do this for several months, and the time is right.

[34:48] And what we have now with Captain Guy Nichols is to present a ship's model that we'd like to give to you for display and

[34:55] Have Captain Kershaw and Captain Williams just to be with us

[35:00] Absurate by photo.

[35:27] Yeah, do you have one for each?

[35:30] Welcome, Johnny.

[35:32] Welcome, John.

[35:33] Yes, sir.

[35:34] Do

[36:02] you hold that chairman's on me?

[36:04] I think he has been in the home.

[36:06] I'm sorry.

[36:08] I'm sorry.

[36:11] Yes, sir.

[36:12] Thank you.

[36:20] Thank you.

[36:31] Thank you.

[36:32] Thank

[36:42] you.

[36:42] I'm sorry.

[36:44] How are you?

[36:50] I'm sorry.

[37:30] Okay, the next item on the agenda's presentation by a coastal band air quality partnership

[37:34] Board President Sarah Garza.

[37:40] Commissioner Sarah Garza is out. We've asked

[37:44] Gretchen Arnold to give the presentation.

[37:49] Yeah, welcome back Gretchen. Good

[37:52] morning. I'm Gretchen Arnold and I'm the interim director for the Coastal

[37:57] Bender Equality Partnership. I'm here today to provide y'all an update from the

[38:02] last time we visited with you about the transition of the partnership from what

[38:06] it was for the last 25 years to what we're about to launch today.

[38:13] I think I'd like to start this presentation by going off the slides for a second and

[38:18] providing a little bit of history about why we're even here today speaking about transitioning

[38:22] the air quality group.

[38:25] The air quality group, as it was known that was initiated back in 1995, has actually been

[38:31] in existence through an ad hoc structure and formulation and made up of efforts of volunteers

[38:39] up until about two years ago.

[38:41] Two years ago, I met Mr. Strawbridge with the port

[38:44] and introduced myself as working

[38:46] with the Corpus Christi Air Quality Group.

[38:48] And by that time, I retired from A&M Corpus Christi

[38:51] where I had chaired the group and wanted this group

[38:54] to continue, wanted it to flourish,

[38:56] wanted the good programs that brought our air quality

[38:59] into air quality attainment standards and continue forward.

[39:03] So I'm in Mr. Strawbridge's office

[39:06] and we're just making small talking, so tell me about your organization, where's your

[39:11] office, your staff? I said, well, it's my kitchen table and the staff is the dog,

[39:16] and he said, pardon me. So I went on and I said, we've been a voluntary ad-hoc group since 1995.

[39:24] We've continued on well past the ad-hoc stage and duties were performed because there are so many

[39:29] passionate people and stakeholders in this community that want to see an air quality group,

[39:34] want to see us remain in your quality standards, and that's where we are.

[39:39] It was Mr. Strawbridge's strong recommendation that our community deserved better, that

[39:45] we needed a full-time organization with structure, a board by-laws, and a bonafide active

[39:51] corporation whose sole purpose is to make sure that we comply with their quality standards

[39:56] in our air shed.

[40:00] We also changed our name from Corpus Christi Air Quality Group to Coastal Bender Quality Partnership, and this was important because the perspective of the name Corpus Christi Air Quality Group really meant that this is a Corpus Christi initiative, Corpus Christi issues. But when you look at how the EPA and TCEQ defined our airshed when they're looking at compliance, it's Nueces and San Patricia counties. So we changed our name to Coastal Bender Quality Partnership, and we set forth on a plan and a very

[40:29] aggressive plan in push to move from what we were to where we are today and I'll bring

[40:35] you up to date on where we are today and what's been accomplished since I last visited

[40:40] with you where we are on our transition.

[40:43] We have established financial support for three years for an operating plus budget for

[40:49] a full-time organization.

[40:51] We've defined the permanent board of directors.

[40:55] We also set an interim transitionary board of directors we've created by laws were now a 501c3 approved organization policies have been developed insurance has been secured basically with this transition group has done over the last almost two years is set this organization moving forward for success with a board that's going into a fully established organization and a full time executive director that is moving into a fully established organization.

[41:25] organization.

[41:28] Our interim board is Sarah Garza, Trent

[41:32] Beggpin and Darcy Schroeder with myself acting as director. We had a hard working transition

[41:38] group too. If you keep in mind where we were with no policies or structure by laws, long

[41:45] term strategic plan, we wanted these things set and prepared to set this organization up

[41:51] for success. And these have all been accomplished by this hard working team over the last almost

[41:56] two years. This is just a brief reflection of what our operating costs were and what our

[42:05] budgeted financials had been with the funds that we've raised and how we're operating now

[42:12] and into the future. And the financial support that we've secured in addition to all of our

[42:18] financial supporters.

[42:24] This is just kind of a review of the things that I've kind of shared with you

[42:27] that I'm just going to go over quickly and I'll come back to a couple of these points in a second.

[42:34] If you go down to the last bullet there, I can't really say enough about how appreciative we are

[42:39] as the partnership to be provided within kind of office space through a lease agreement with the

[42:46] port of Corpus Christi. And that's actually section 11 of your agenda. I would probably be before

[42:53] you in two or three more months from now saying we're ready to go if we had not been blessed to have

[42:59] this space available for us to operate out of with the engineering at Annex building. It's basically

[43:06] moving ready. We're getting ready to get internet service to the office as we speak and it's a

[43:13] cost and an exercise that our group will not have to go through things to the support of the port.

[43:19] I'll bring back another important point here in a moment.

[43:23] The next steps that we're going to be working with and we're working with today is inviting elected officials to fill the board positions.

[43:32] We're doing our final branding and website building right now as we speak and developing our action plan for the board approval that will also go forward with the new permanent board through December of 2024.

[43:47] I would like to, at this point, before I move to my invitation to you to provide a seat

[43:54] on our Board of Directors, I would like to introduce to you, and I have great pleasure

[43:59] introducing to you Sharon Bailey Murphy.

[44:02] She is our new executive full-time director of the organization, and Sharon is no stranger

[44:08] to most of you in this room, and certainly no stranger to the folks in our organization.

[44:12] She's been a stakeholder and a very passionate cheerleader for this group for many, many years.

[44:19] And I can't be more thrilled to officially welcome her into the fold and actually make

[44:24] my very first public presentation to our new executive director, Sharon Bailey Murphy.

[44:30] Good morning.

[44:37] And thank you, Gretchen.

[44:38] These are tremendous shoes to feel.

[44:41] I know that most of you are familiar with Gretchen and know her personally.

[44:44] and her tenacious work with the air quality partnership and so I'm just honored that I was chosen.

[44:51] Some of you I work with, I'm looking forward to working with you on the voter directors in

[44:55] the future, making sure that we are good stewards of our natural resources here.

[45:00] First, Christy, Texas, and in our region. Again, I'm looking forward to it, and I'm just totally, totally honored that you got which select me. Thank you.

[45:11] Thank you, Sharon. And thanks again to Julio and the leasing department for giving us a place that we can get into right away. Thank you all for your attention, your support. I've lost count of how many times I've been before the port commission over the many years, and you've always been supportive. We have gotten support from the port in terms of helping with

[45:32] our auto check program in terms of some of a lot of our consulting and expenses that we've

[45:38] incurred in this process for many years and I'm honored and proud and look forward to this

[45:44] opportunity right here right now where Chairman's on and your colleagues there on the commission

[45:50] to invite you to provide an appointment to sit on our first permanent board of the Coastal Bandair

[45:56] quality partnership. Thank you. Thank you.

[46:02] Any questions or comments?

[46:05] Commissioner, if I may, I want to congratulate Gretchen and Sarah and all of the folks

[46:12] that worked on the transition team industry, certainly local governments, they'll be representation

[46:19] on the board by the Port of Corpus Christi, the city of Corpus Christi, the city of Portland,

[46:25] The Wases County and San Patricio County, as well as three board members appointed by industry, and one board member appointed by an NGO.

[46:36] Earl Somerlin, I think is the first to represent the NGOs.

[46:41] And it's important to know that when we talk about these types of initiatives, we have to, as a partnership, have every voice at the table.

[46:49] And I know that Mr. Somerlin certainly has a voice that we can hear regularly.

[46:56] He is often a critic of the port and of industry, but to have him on the board and his acceptance of being on the board.

[47:05] I think just shows that when there is a willingness and a will to work together by all parties, we certainly can do some wonderful things.

[47:13] And I remember the day that Gretchen was in my office and I asked her what legacy she

[47:21] wanted to leave because essentially she was doing this great work from her kitchen table

[47:26] for many, many years and like us all, we all have other chapters of our life and at some

[47:32] point Gretchen's going to want to move on to a new chapter in her life.

[47:36] But the importance of our airshed to our community and to our businesses and to our governments

[47:43] This cannot be understated.

[47:45] I know that Dr. Lee from Texas A&M Corpus Christi conducted an economic impact study on the impacts of this, our two county airshed were to fall out of its attainment status.

[48:00] And what was sobering was the economic impact that Dr. Lee indicated upwards of nearly $2 billion per year.

[48:09] of cost to industry and to local governments if we fell out of attainment.

[48:15] So there is not to mention the social determinants of health impact and

[48:20] the social impacts of our airshed falling out of attainment.

[48:24] So it is extremely critical to our overall viability as a community.

[48:29] And I just want to thank Gretchen and Sarah Garza and the rest of the team for

[48:38] really taking a vision and at times would seem like a long time, bringing it to what is now something that's going to be sustainable well into the future.

[48:49] So thank you very much, Gretchen. Appreciate that.

[48:53] Thank you, Gretchen.

[48:58] Okay, but now we'll go to the open agenda and the first item on the open agenda is to receive an approve of the Port of Cork Prescription's first quarter 2022 financial report.

[49:07] Good morning, Chairman Zahn, commissioners.

[49:09] Staff-Seeking Port Commission approval of the financial report for the first quarter of 2022.

[49:15] The report was attached in your packet.

[49:17] Details of the port's results for the first three months of 2022 is compared to both the

[49:22] prior years, first three months, and the commission approved 2022 budgets first three

[49:27] months.

[49:28] If you go to slide three, please, which is the executive summary, I just want to point out

[49:33] a few things here.

[49:35] Year-to-date tonnage is up 16.4% from the prior year.

[49:40] We put out a press release yesterday as well talking about the first four months.

[49:44] That good performance continued into April.

[49:48] The first quarter of 22 was actually the second highest quarterly tonnage in the

[49:53] The only one that beat us was the prior quarter.

[49:58] Revenues for the first-

[50:00] We're the second highest in the port's history, and we're only beaten by the fourth quarter of 2020, which if you recall, had a one-time special charge for dredging that we had done for a customer. So, excluding that dredging, revenues in the first quarter actually were the best quarter that we had in the port's history. So all of that obviously results in earnings that are also above budget and above the prior year. We're about 4% above budget.

[50:28] On our names, in about 16% ahead of last year, you'll recall last year, similar to the year before.

[50:35] Obviously had some anomalies in the first quarter, so this quarter, luckily, no winter freezes, no pandemic, knocking down business.

[50:47] Operating expenses when you exclude depreciation are lower than budget currently, we're lower on employee services, cost down on maintenance.

[50:54] But they are higher than prior year, you'll recall last year because of the freeze we got off to a really slow start on some of our maintenance work and professional services and contracted services are also higher this year than they were last year.

[51:11] One thing to point out, rail car movements have been significantly down this year.

[51:16] They're down over 40%, that's primarily as a result of less grain coming into ADM.

[51:24] In the first quarter, there's a variety of reasons for that.

[51:27] There's not one distinct reason to point to, last year we were on an unprecedented

[51:33] boom.

[51:34] So after a couple of years of depressed demand out of that terminal.

[51:41] So part of that was we got a really high comparison point to last year.

[51:45] But it's something that obviously bears watching outbounds have grown slightly, but not near enough to account for the decrease in in-bounds and then capital spending were below budget and prior to or so far for through the first three months, if you go one more slide forward.

[52:02] Do we know if that rail is diverted somewhere else? I mean, did it go to Houston or go to Belmont or go somewhere else or it's just not there.

[52:10] No, I think if you look at, excuse me, if you don't mind my intercepting the question.

[52:16] If you look at the, in talk with the class one railroads and what's happening with them,

[52:22] you're going to see that their service levels are really poor right now.

[52:25] They're having trouble delivering and getting one, having enough cars, two, having enough

[52:31] crews to deliver those cars.

[52:33] and so there are service levels which are on notice at the federal level with a service transportation board.

[52:42] Every one of them is except maybe KCS is suffering from service degradation, if you will.

[52:50] Thank you, Clark.

[52:52] If you look at the trends on here, one of the things I like actually about the last five quarters is the slow and steady growth.

[53:00] if I like to see this kind of consistency.

[53:02] So if you look at operating revenue and tonnage over the last year plus,

[53:07] you'll see a very consistent performance there, which I continue to like.

[53:12] If you go just up to slide 10, which is our income statement for the year to date,

[53:21] you'll see that we're ahead of budget slightly and ahead of actual as I mentioned.

[53:26] and you can see the breakdown there.

[53:29] It's really across the board, slightly better

[53:33] in, you know,

[53:34] orphanage, dockage, security charges, everything.

[53:37] So, with that being said,

[53:40] showing if there are any comments,

[53:41] you'd like to make or if there are any additional questions

[53:43] you'd like to ask happy to field both of those now.

[53:46] Otherwise, we're asking for approval

[53:47] of the first quarter 2022 finance report.

[53:50] I'll make a motion to approve.

[53:52] Is there a second?

[53:53] I'll second.

[53:53] been moved in second and now any discussion.

[53:56] I'm mentioning it's all I would like to do is I would like to thank and acknowledge

[54:01] our customers for their tenacity and continued support of the Port of Corpus Christi and

[54:08] their continued investment in and around the Port of Corpus Christi.

[54:12] It's their volumes and their hard work that make us successful.

[54:17] We've seen obviously strength in areas like LNG, as we heard from Cheneur, up another 56% this year, as well as refined products, up 17% and crude oil up nearly 9%.

[54:35] That's all due to the continued investment in the coastal bend by the energy markets.

[54:41] It's now the Permian Basin is producing more oil than it ever has in its history.

[54:46] It produces more oil than any OPEC country with the exception of Saudi Arabia.

[54:51] Much of that is going to the European theater.

[54:54] As we've seen, our Western European allies dependency on American energy increase.

[55:00] Any in crisis, and this gateway is no less important not only to the state and to the nation, but certainly internationally. And we'll talk a little bit more about our recent trip to Europe and the feedback that we got from our partners over in Europe on that. But I certainly want to acknowledge all of our customers for their continued success and we look forward to seeing more from them in the future. Any other questions or comments?

[55:29] If not, all in favor of staff recommend

[55:31] Foundation to approve the first quarter of the National Report.

[55:33] Seeing five by saying aye.

[55:35] Aye.

[55:35] All opposed.

[55:36] The same sign.

[55:38] The motion carries.

[55:39] Item 10-B, we're receiving a approved Port of Corpus Christi's first quarter, 2022 investment report.

[55:46] 20 Chairman's on, commissioners.

[55:48] Staff seeking port commission approval of the investment report for the first quarter of 2022.

[55:54] I can't tell you the report was prepared in accordance with our investment policy and our investment strategy.

[55:58] and meets the requirements of the Public Fund's Investment Act of the State of Texas.

[56:03] You can go to slide three.

[56:05] We put a compliance statement in here for you every quarter just to make sure you know

[56:10] that we're saying that all of this is presented accurate in all material respects and in a

[56:19] manner that fairly sets forth our position in our investments.

[56:23] You will notice that there are only two investment officers on here, so I did want to point that

[56:26] out to you Sharon Richardson who was our financial controller. Left took another job you had recently

[56:32] approved naming her as an investment officer. Cindy and I will continue to act as the investment

[56:37] officers in the time being. We probably once we make a replacement hire there we'll come back and

[56:43] ask for a third investment officer which makes it a little easier for us to get our jobs done in

[56:49] this realm. If you'll go to the next slide please the executive summary. Currently we've got about

[56:55] $324 million invested, that is up $16 million from the end of the year.

[57:01] As we noted in the financial report, we had record revenues and earnings in the first quarter,

[57:08] and we started a little slow on capital spending, so that's what that growth is attributed to.

[57:13] You'll remember our investment approach is hold the maturity, it's non speculative.

[57:19] We'll continue to talk about that in the audit committee and particularly at our next meeting because as you can see we are sitting on a large unrealized loss because of the change in markets in the way interest rates are moving.

[57:34] So we do want to just be thoughtful about our approach there and make sure that we don't take any of that unrealized loss into a realized loss.

[57:44] the market conditions right now as you all know are moving quickly and they're

[57:49] changing significantly from where we've been the last several years so the

[57:52] short-term rates are moving higher quickly the back end once you get past kind of

[57:56] the two-year investment point there those are moving up a little slower and I'll

[58:01] show you the the rates in just a second the Federal Reserve that was talking about

[58:06] raising rates further so we're gonna have to deal with that going forward you're

[58:12] going to see in here in just a second, I'll show you, you know, our performance versus

[58:18] our benchmark. And so when it was going down and we were holding on to investments, we

[58:23] had made previously we looked outstanding. It's moving up so fast right now, we're going

[58:27] to continue to underperform those benchmarks, at least for the next 18 months until we roll

[58:32] out of the investments we already had.

[58:34] Yeah, and I just want to make a comment or base ask a question on your unrealized gain

[58:39] and loss. If you hold those assets to maturity, that just goes away. Okay. I just want to make

[58:46] sure everybody understands that. I want to make a comment that our WAM, our weighted

[58:50] average maturity 425 is conservative and short.

[58:56] Great. And we're going to try to even, you'll see when we go to, let's go to slide six if

[59:05] If you would kind of see the things we had been invested in, we had gotten, we had

[59:14] gotten heavily invested in municipal bonds and those are typically two and three year

[59:19] bonds.

[59:19] That's the yellow bar there.

[59:21] You'll see that that's actually coming down commercial paper and Treasury's agencies

[59:26] which are typically kind of in the year, year and a half range.

[59:30] We've been taking those up a little bit and so we're going to try to continue to manage

[59:35] that that way I'm a conservative point.

[59:39] The way I'm is on that next slide page seven.

[59:44] That's kind of where that is. And you'll recall that we had a we had a cap on our way leverage

[59:49] maturity of one year up until the revised policy. And we just approved a policy in December that's

[59:57] in effect now.

[1:00:00] And so we'll manage within that range.

[1:00:05] If you go to slide nine, please. You can see what the Treasury yield curve has done. The top three lines are the last three months with obviously the highest one being the most recent March. If you threw April on top of that, it would even be sitting above that for two years. We've seen all of our lines for six months worth packed into a very tight. Sometimes you can't even tell that it's more than one line. It's moving really quickly right now.

[1:00:31] and so we'll continue to manage with that in mind.

[1:00:35] And then on slide 10, that's what I was saying against our benchmarks,

[1:00:40] which is typically the one year treasury bill.

[1:00:43] We underperformed as it rose much quicker than we can get out of investments and

[1:00:47] get into new investments.

[1:00:49] We did earn 58 basis points this month, which is better than we have been.

[1:00:56] At some points we were as low as 35 basis points on our earnings couple of quarters ago.

[1:01:01] So unless there are additional questions or comments, we ask approval for the first quarter 2020.

[1:01:08] I'll make that motion to approve the investment report.

[1:01:10] It's been moved in second. Is there any discussion?

[1:01:13] Mission is the only thing that I would add is clearly our capital is better placed in projects where we can lease facilities to our customers.

[1:01:24] And we are in the enviable position of having a pretty good level of liquidity.

[1:01:30] We will be bringing to you in the next few months some long-term lease agreements that will have some capital commitments to them, but our earning our return on invested capital is nearly 14% on those projects.

[1:01:45] So clearly not being in cash and instead using that cash for our large capital projects that will yield long-term annuities is the goal of staff and we will be bringing some of those to you in the coming months.

[1:01:58] Any other discussion?

[1:01:59] Yeah, just real quick.

[1:02:00] We have $300 million in bonds out.

[1:02:03] What is our average interest rate that we're paying on those, do you know?

[1:02:07] If you look at all three series that are out, it's just over 4%.

[1:02:14] And one final question.

[1:02:16] The amount of money that we still owe towards the deepening and widening would be how much?

[1:02:22] So if you can take it, if things work out correctly, we've paid our portion

[1:02:27] and other than for the pipeline relocations,

[1:02:31] which we probably still have a significant capital commitment

[1:02:33] coming for that over the course.

[1:02:35] Now, that certainly is dependent upon

[1:02:37] where the bids come in for the fourth and final phase,

[1:02:41] which as we know, and I'll speak through it

[1:02:43] during my comments, the President Biden

[1:02:46] it include project closeout funding

[1:02:48] for that fourth and final phase of $157 million,

[1:02:52] and we'll talk a little bit more about the process

[1:02:55] of getting that to a spending package and getting that through Congress, but that will

[1:03:00] not be put out to bid until or unless we get a spending package passed through Congress.

[1:03:07] Any other questions or comments?

[1:03:10] Okay, hearing none, all in favor of item 10B, proving the Port Corpus Christi's first quarter

[1:03:16] investment report, signify my saying aye, aye, all opposed, the same sign, and the motion

[1:03:23] carries.

[1:03:23] item 10C, a water construction contract, a TTL ink in the amount of $2,558,630.41.

[1:03:32] For the removal of the new Aces County Water Control and Improvement District number

[1:03:36] four, 20-inch water line associated with construction of the Corps of Scricious Ship Channel Improvement

[1:03:41] Project.

[1:03:43] Good morning, Mr. Chairman and Board Commissioners.

[1:03:46] I'd like to start out by perhaps giving some background on this project.

[1:03:50] The Nueces County water control and improvement district for, I'll call them water district for short.

[1:03:57] They own a 20-inch pipeline that runs from Harbor Island to Porter Ranch's across the ship channel.

[1:04:05] They've owned and operated this line for quite some time.

[1:04:08] And during the feasibility study for the channel improvement project, back in the late 90s and early 2000s,

[1:04:16] The core evaluated this line to see if there were impacts from construction of the challenge

[1:04:22] improvement project.

[1:04:23] At that time, based on the available data, it was determined that the line was deep enough

[1:04:30] and it was designated to remain in place.

[1:04:32] Once we got into final design efforts following the execution of our PPA agreement, the core

[1:04:40] more asked us to perform sub-bottom profiles to verify the location of the water line.

[1:04:46] Once we got that data in, it showed that the water line was actually more shallow than

[1:04:51] what was included in the as-built.

[1:04:53] In lieu of that new data, the core determined that that was to be relocated.

[1:05:00] And the issued a directive to remove notice to the water district. Due to that late notice, the water district was not able to budget or obtain funding for the relocation of that water line. And in October of 2020, the port stepped in. And we executed an interlocal agreement with the water district in which we agreed to relocate the water line on behalf of the water district. In April of 2021,

[1:05:29] We awarded a construction contract to install the new 20-inch water line

[1:05:34] underneath the ship channel and tie into the existing system.

[1:05:38] That work was substantially completed in December of 2021

[1:05:42] and the new water line is in operation today.

[1:05:46] Now that the new water line has been constructed, we need to remove the old water line.

[1:05:50] The old water line is located within the same trench as the AEP conduit.

[1:05:55] The two lines cannot be removed individually and they must be removed together.

[1:06:01] TTL was contracted early on by AEP to be the EPC contractor for this project.

[1:06:08] And during the initial design phases, they coordinated with the water district

[1:06:12] to include the removal of the water line in conjunction with the AEP removal.

[1:06:19] Following execution of the interlocal agreement between the port and the water district,

[1:06:24] Port staff began working with AEP and TTL to accomplish this work.

[1:06:29] So do the safety reasons and the complex coordination of removing two lines simultaneously.

[1:06:35] The Port staff negotiated a construction contract pursuant to Texas water code section 60.41282,

[1:06:43] with TTL for the removal of the water line concurrent with removal of the AEP line.

[1:06:51] and the total estimated cost for removal of both lines

[1:06:54] is just north of $5 million.

[1:06:56] The port share for the removal of the water line

[1:06:59] is $2,558,630 and 41 cents.

[1:07:06] I would like to point out that we were diligently

[1:07:09] to reduce cost for this project.

[1:07:12] The original proposal from TTO was in an amount

[1:07:15] of $5.7 million and it had a port cost share

[1:07:18] of $3.2 million.

[1:07:21] The proposal also included qualifications for additional costs associated with delays caused

[1:07:27] by vessel traffic, work access, weather conditions.

[1:07:31] All they really had the potential to significantly increase total project costs.

[1:07:36] To reduce costs and mitigate these risks, we collaborated with the pilot's association,

[1:07:41] the Coast Guard, TTL, their subcontractor.

[1:07:45] In order to provide guaranteed access to the channel to perform the work, we also reduced

[1:07:51] the portion of the scope, and we also negotiated a fair port cost share allocation.

[1:07:57] As a result, we were able to reduce the port share by about 700,000, and we greatly reduced

[1:08:03] the exposure of additional costs.

[1:08:06] Lastly, I did want to mention that we did budget for this work in 2022, and this cost is within

[1:08:12] the budget.

[1:08:12] With that said, we're recommending approval, the construction contract, the TTL promotion to accept staff recommendation

[1:08:23] Chairman have a question

[1:08:26] So just so I know for the future

[1:08:29] How deep was that line laid originally and when and how much has the movement been over the years upwards?

[1:08:42] To be honest, I don't recall the exact elevation that it was, the old line was put in.

[1:08:48] The core does require that the lines are 20 foot below the template of the channel.

[1:08:53] And so either portions, the area across the channel or in the side slopes was interfering

[1:08:59] with that 20 foot clearance requirement.

[1:09:01] For the new line, it was installed at about 125 feet, so that would mitigate any potential

[1:09:08] a little conflict with future deep new projects.

[1:09:13] Being that I don't think we have a choice

[1:09:14] on this matter, I'll make the motion.

[1:09:17] Is there a second?

[1:09:18] Second.

[1:09:19] Got to understand.

[1:09:20] I represent this is my oldest client.

[1:09:22] There's a lawyer who is the water district,

[1:09:24] and so I have a conflict of interest and will abstain.

[1:09:28] Is there any discussion?

[1:09:30] The only thing I would add is I do want to commend Dan Clark

[1:09:34] and I sat in on a meeting with TTI, TGL, when we first got the initial costs and challenged

[1:09:44] them to really look at driving some costs out of that.

[1:09:48] So the fact that Dan was able to drive another $700,000 a cost out of this particular project

[1:09:55] And I think just shows his tenacity and really

[1:10:00] I certainly feel comfortable, Clark, I assume you do, too, with this proposal. And it is a requirement by the Corps. And for those of you new commissioners, we made a commitment to the Water Improvement, Nueces County Water Improvement District number four, that we would absorb all of the cost for this particular project. They had some challenges financially and weren't in a position to remove the line.

[1:10:27] and so we took it upon ourselves to help them out there.

[1:10:35] Is there any other discussion?

[1:10:37] Hearing none, all in favor signify by saying aye.

[1:10:40] Aye.

[1:10:41] All opposed, the same sign.

[1:10:43] Let the record reflect that I abstain.

[1:10:47] Item 10D approves staff to apply for four million, $380,094

[1:10:52] to the Department of Homeland Security Preparedness.

[1:10:54] physical year 2022 port security grant program for five port of corporate

[1:10:59] security security projects. Good morning commissioners we want to we'd like to

[1:11:05] come before you this morning and ask for permission to apply for the 2022

[1:11:09] port security grant program through FEMA. This program this year's selection of

[1:11:14] projects there are five projects you see listed there and the total to that we

[1:11:19] are asking for that we'll be asking the award will be $4,380,094.

[1:11:24] dollars. To give you a bit of history on this, we have been applying for this program

[1:11:28] and not just acquiring security apparatus but maintaining our security apparatus since

[1:11:34] the program started in 2002. This year the program is funded $100 million. It's been

[1:11:40] $100 million for several years now and statutorily any applicant can only write for one application

[1:11:48] with five projects, and each project can only ask for up to $5 million to $1 million.

[1:11:54] So I'm going to give you just the high level view of those projects in the background,

[1:12:00] and then the memo, you'll see some more information on these, but I know there is a time limit today.

[1:12:06] But the five projects that we are advancing today for the Port Security Grant Program,

[1:12:10] Project 1 is our Security Command Center renovation. We'll be moving, as you know,

[1:12:15] And as you've heard through facilities as well as the design contract, we're moving our Security Command Center from its current location on Port Avenue to the anac to the admin building.

[1:12:27] That project we're asking for the million dollar cap that leaves 750,000 for the port as the contract currently stands however in consent today there is an item related to this project we just want you to know that we know that.

[1:12:40] This is pre that since we're coming to you for the award before the consent.

[1:12:47] The second project is for the South Side Marine Center.

[1:12:50] With the move of our maintenance department off of the water, we are also in need of moving

[1:12:55] our marine assets.

[1:12:56] We've located an ideal location on the South Side of the channel that doesn't take up some

[1:13:01] valuable land.

[1:13:03] That is also coming in a million dollar ask and $601,000 that will remain on the port sign.

[1:13:09] Project 3 is to do access light and can't put cameras along the west access road that we

[1:13:17] are currently constructing on the west end of the book terminal. That project, the third project

[1:13:22] that we are asking for the cap of a million dollars is currently estimated to be 1,595,400.

[1:13:31] The next two projects we don't hit the cap on. The Rincón area, which you're very aware of, we've

[1:13:36] invested quite a bit in that area but we also need to do a little more lighting and some cameras in that area so we can bring security to that section of the port that project we're asking for $630 and $94 with the port having $210,000 $31 and the final project is you've heard this before.

[1:13:54] For likely we usually call it upkeep and maintenance and FEMA has changed the name of what we can ask for on that is maintenance and sustainability, which makes perfect sense that is that money goes to that's maintenance and upkeep of all of our security apparatus if we need replace a piece of fencing if we need to replace a camera those such those things and that project we're asking for $750,000 with the port match of 250 all told we are asking for $404,380,094 with a prox

[1:14:24] Approximately 2,406,431 dollars left for port responsibility.

[1:14:30] This grant usually has a 25% match but with cost rising and the allocation to the program not increasing.

[1:14:39] We are actually upping our match this year to 35% instead of 25% just because costs are increasing on us.

[1:14:47] I'll leave the details to any questions you may have.

[1:14:50] We are here. We have all of our grants, support team here from the directors of marine assets and engineering to Chief of Playsing.

[1:15:00] Projects, but we are asking for permission to apply. Motion for, is there a motion to approve staff's recommendation? So moved. Is there a second? Second. All right. Commissioner Engel. Couple of, couple of clarifications. One is the, any one of these projects, I guess, would they award this in total or would they, could they pick and choose? They're likely to pick and choose, so we can apply for up to five. We have traditionally gotten anywhere from one to four awards.

[1:15:29] commissioner angle last year we were awarded one project there could be any one of the five or it

[1:15:36] could be all five that's pretty rare given the limitations of the program at this point.

[1:15:40] And it comes back to the commission for approval correct. Anything just like always any of those

[1:15:44] contracts will come back to commission approval and we'll mention that there's a grant award involved.

[1:15:48] Again the Southside Marine Center could you just give a little more detail on that?

[1:15:52] Absolutely so in relocating our maintenance department we do need to find a new home for our

[1:15:57] marine assets. The area that was once the south side of the Tule Lake lift

[1:16:02] bridge, there's still a tower and it is on port property. That area is being

[1:16:06] renovated and refurbished to house our marine asset program. Tom, my let our

[1:16:11] director of marine assets can speak to it a little bit more, but this will advance

[1:16:15] that project and help us make that move for those assets.

[1:16:20] Any other questions

[1:16:21] your comments? All right, hearing none, all in favor signify by saying aye.

[1:16:27] Aye.

[1:16:27] All opposed, the same sign, the motion carries.

[1:16:31] Thank you.

[1:16:31] Next item is a consent agenda. Are there any items on the consent agenda that a

[1:16:35] commissioner would like to have pulled?

[1:16:37] Yes?

[1:16:37] Yes, sir.

[1:16:39] G, H, I, and N, V, H, I, I, just those three, N, N, N, N, all right, I'm Mr.

[1:16:53] Smith.

[1:16:54] I'd like a poll.

[1:17:08] Are there any others?

[1:17:11] All right.

[1:17:11] If not, then I'd entertain a motion on the consent agenda to approve items 14A, V, C, D, E,

[1:17:17] F, J-K-L-M,

[1:17:23] so move.

[1:17:24] Is there a second?

[1:17:26] Second.

[1:17:26] It's been moved and seconded in discussion.

[1:17:29] Okay.

[1:17:29] Here in 9, all in favor.

[1:17:30] Second, five were saying aye.

[1:17:32] Aye.

[1:17:33] All opposed.

[1:17:33] The same sign.

[1:17:35] The motion carries.

[1:17:36] Commissioner Hoskins, 11-G-H-N-I.

[1:17:39] We can lump those together.

[1:17:40] I would like to see these items pulled today and sent

[1:17:43] through the facilities committee.

[1:17:45] I'm not opposed to incine leases, but what I would

[1:17:47] like to do is have a serious discussion about that building and what the port really wants

[1:17:53] to do with it because we start leasing it out. It's going to be a long term lease. We're

[1:17:56] going to be in there forever. It's an older building. It's a very valuable piece of property.

[1:18:02] And I think that the commission itself would want to weigh in on, I mean, we're leasing

[1:18:06] part of it today if we do this. But then we're going to commit ourselves for maintaining

[1:18:12] an old building for a long, long time. So I just feel like it needs to be run through

[1:18:16] through the facilities committee and discussed.

[1:18:20] And it may have been, and I've missed it a little bit.

[1:18:21] Well, that was going to be my comment, Commissioner Hoskins, is that we took this up with facilities

[1:18:27] for two years, probably just going back and forth about what to do and sort of the way we've,

[1:18:35] what we decided was that both with the admin building and the annex building, that it made more sense for us to repurpose them.

[1:18:42] And that's where we are right now.

[1:18:44] We bring that before the commission, or was that just a facilities decision?

[1:18:50] Well, we've brought expenses associated with the repurposing to the commission.

[1:18:56] You've approved a, is it 1.9, well, 1.9 is a total budget.

[1:19:02] But right now it's a design, some design work for the admin building related to converting it to the joint command and control center.

[1:19:11] That has come to the commission, certainly.

[1:19:13] The thing I also want to remind you, Commissioner Hoskins, in the rest of the commission is we still have our harbor master located in that annex building.

[1:19:23] We did a full refurbishment of that space and all the new technologies.

[1:19:28] Here again, we felt it was better to keep them there because of all the radar and the communications infrastructure that's already in place there.

[1:19:36] That building is hurricane rated, in fact it was in place in an operational during hurricane Harvey, and as we know the harbor master has to shelter in place during a major event unless there's a mass evacuation ordered by the county judge.

[1:19:52] So those buildings, right now, they'll persist until we-

[1:20:00] We felt a good use of the annex space was to offer it to the not-for-profits that we obviously have heard from today, including the Chamber of Commerce, which there's been a lot of discussion about the Chamber of Commerce. And I think that lease is being prepared to come to you next month. What is the length of time on these leases, do you know? That's a great question, Sam. Well, I think what I was going to propose is that perhaps the way to cure this is to make sure that there's a provision

[1:20:29] in each lease that says should the commission vote to dispose of the asset or do whatever,

[1:20:36] you know, then the lease would terminate.

[1:20:38] Five-year lease is right now, I'm told by lawyer Welder.

[1:20:42] That too late, Jimmy, to include a provision?

[1:20:46] Yeah.

[1:20:48] What was that answer?

[1:20:50] Not too late.

[1:20:52] It's not too late.

[1:20:52] It is not too late to add that provisional which was at the-

[1:20:58] In the event in the future, the port commission decides to repurpose that building, and the lease would be terminated with notice.

[1:21:05] Yeah, how much notice? 90 days. 90 days is probably good.

[1:21:11] That work west.

[1:21:12] I mean, yeah, and I would like to put this on the facilities agenda so that the current members can have that discussion and make, well, we can't have you there.

[1:21:21] There's three of us, but maybe we can refresh us on the.

[1:21:24] Unless you wanted to have an open facilities committee meeting.

[1:21:27] Good.

[1:21:31] Would you entertain the motion commission?

[1:21:34] I'll make a motion.

[1:21:35] We appreciate it.

[1:21:36] I would like to approve it as amended with the language we gave.

[1:21:39] The council's amendment to that to terminate it in 90 days.

[1:21:45] Is there a second on that?

[1:21:47] Second.

[1:21:48] Is there any more discussion?

[1:21:50] All right.

[1:21:51] Hearing none, all in favor.

[1:21:52] Signify by saying aye.

[1:21:53] Aye.

[1:21:55] All opposed.

[1:21:55] The same sign.

[1:21:56] and the motion carries item 11 in, Commissioner Hoskins.

[1:22:00] You know, I just want to say that I think I've changed my mind on hydrogen and the port

[1:22:05] pursuing hydrogen because we've had industry over in San Francisco County announced that

[1:22:10] we had a several billion dollar investment in that.

[1:22:13] And I just think this is getting a little far away from the water for the port to do that,

[1:22:18] Sean.

[1:22:18] I mean, that's just the way I'm looking at it that the feasibility analysis, I think we're

[1:22:25] We're seeing it's going to be done, and private industry is going to be doing it, so I'm not sure I agree with government doing this.

[1:22:32] So that's my comments on this, and I, you're certainly walking to respond.

[1:22:37] Happy to respond to that, if.

[1:22:40] So this, just to refresh your memory, we have an existing feasibility study, feasibility analysis concluding right now by the National Renewable Energy Lab.

[1:22:49] NREL is one of seven federal labs, they're effectively the research arm of DOE, that lab,

[1:22:55] that study took a look at us regionally, including all of our customer's industry partners

[1:23:02] to try to get a sense of the balance between demand and supply for hydrogen production, what

[1:23:08] the production potential was and whether there was parity with existing demand and projected

[1:23:13] demand.

[1:23:13] And we actually think that that will serve our customer base.

[1:23:17] It's a look at the marketplace writ large that no other individual entity was doing.

[1:23:23] So we just received the draft of that feasibility study.

[1:23:26] The amendment to the contract with NREL that's proposed here would take a look at a second dimension here,

[1:23:33] which is co-locating hydrogen production offshore with offshore wind.

[1:23:38] And we would be co-funding this with private sector customer prospect who wants to do hydrogen

[1:23:44] both onshore, potentially in the inner harbor, and is also interested in offshore wind

[1:23:49] on federal lands and offshore hydrogen production.

[1:23:51] So again, that would be hydrogen that potentially serves, excuse me, serves our existing customer

[1:23:57] base and industrial need and is part of our export story.

[1:24:02] So, these are, we're actually honing in on analyses that are either directly serving

[1:24:08] specific customers or customers in aggregate or would not otherwise be undertaken.

[1:24:13] So, we're really working hard to differentiate that which we study from that which is being

[1:24:18] looked at by our customers.

[1:24:19] And if I can just maybe add to that, the Department of Energy as you've heard us articulate over

[1:24:27] the last few months has a large amount of appropriations from the Infrastructure Investment

[1:24:34] Jobs Act to the tune of about $68 billion that they'll be spending in the space over

[1:24:39] the next five years, including offshore.

[1:24:42] And by having this type of relationship with NREL positions us well to be a grantee for

[1:24:50] some of those funds, we as we all know have a tremendous amount of wind energy and wind

[1:24:56] and in the region of the youth.

[1:25:00] Sure. Renewable energy production. There's no reason to believe that those same, that same win can't be harnessed offshore for offshore win production. And the fact that we do have a potential customer who's willing to put some of their dollars towards co-funding the study, we think really shows that that partnership between government and industry is, is really what it's going to take to get us to hydrogen production at scale for the region.

[1:25:27] Any

[1:25:30] other questions, comments? Is there a motion to approve?

[1:25:35] Make that motion.

[1:25:36] Second.

[1:25:37] Second.

[1:25:38] It's been moved and seconded, is there any additional discussion?

[1:25:42] All right.

[1:25:42] Here and none.

[1:25:43] All in favor signify.

[1:25:44] If I have a saying aye.

[1:25:45] Aye.

[1:25:46] All opposed.

[1:25:46] The same sign.

[1:25:48] Aye.

[1:25:48] And the motion carries.

[1:25:50] Item 11.

[1:25:52] O.

[1:25:53] Commissioner Engle.

[1:25:54] I have a question and then I have a request.

[1:25:58] It's just the only consultant that we have that basically I'm reading the memo that says

[1:26:06] provide media relations services to the port for key media influencers.

[1:26:12] Who else do we have that's doing that same role for us?

[1:26:15] Anybody?

[1:26:16] So Thomas Graham and Crosswinds Commissioner really focuses on state and local media.

[1:26:21] We also have a national PR firm that does national international.

[1:26:24] National, that's BCW and they're out of Washington, DC, so we have two firms.

[1:26:27] The memo says national and global entities, so are they actually doing that?

[1:26:32] They do some of that as well too, but they're really primarily focused on state and local.

[1:26:39] So I would like to have, I'll make a motion here in just a second, but I would like to have them come make a presentation so that we understand maybe what they do, maybe you would, what other consultants that I don't think we need our Washington DC.

[1:26:53] He's been here, but we've not heard from these people in a long time.

[1:26:57] I would like to have them on the agenda where they could come and make a presentation.

[1:27:00] So we understand what they really do.

[1:27:02] Yeah, we've been delighted to commission her.

[1:27:04] We did hear from them last year.

[1:27:06] They're the ones who conducted the voter poll in Nueces and San Patricia County

[1:27:12] that showed that over 70% of registered voters that were pulled are trusting

[1:27:17] of the Port of Corpus Christi in a variety of areas.

[1:27:21] Crosswind Media is also the media organization for the Texas State Aquarium, so they've got a fairly good familiarity with this region, but I think it would be good and I think the timing is good to have Thomas Graham who is their president and CEO and some of his staff come and make a presentation will certainly do that.

[1:27:42] I'm sorry, I have a quick question.

[1:27:46] So Sean, this 11-0 says,

[1:27:47] reimbursable expenses to 125 land.

[1:27:50] Do we have a separate contract with him to do the rest of it?

[1:27:52] No, so that is the contract,

[1:27:54] but in all of our contracts with consultants like this,

[1:28:00] whether it's a lobbyist or whether it's a PR firm,

[1:28:03] there's a fee for service,

[1:28:04] and then there's an expense side of it.

[1:28:07] And what we're finding is,

[1:28:08] This particular contract had a very small amount on the expenses and so there is a possibility of him exceeding that so we wanted to go from that $3,000 of expense allocation to give him $25,000 of expense allocation, whether that's used or not is really at our discretion, but $3,000 we found was just not suitable for the amount of work that Mr. Graham and Crosswind is doing for us.

[1:28:34] And for total of 125.

[1:28:36] That's correct.

[1:28:38] I have a motion from Commissioner Engel.

[1:28:41] Is there a second?

[1:28:43] Okay.

[1:28:43] I have a second.

[1:28:44] Is there any discussion?

[1:28:46] Once again, hearing none.

[1:28:47] All in favor.

[1:28:48] Second five are saying aye.

[1:28:49] Aye.

[1:28:50] All opposed.

[1:28:51] The same sign.

[1:28:52] The motion carries.

[1:28:53] Aye.

[1:28:54] Opposed.

[1:29:02] All right.

[1:29:03] Next item is chief executive report.

[1:29:07] Thank you, Mr. Chairman and commissioners.

[1:29:08] First, if I can give you a reminder, today is the Texas primary runoff election and voting

[1:29:14] center locations in Nueces County and San Patricia County are open from seven to seven.

[1:29:19] So please exercise your right to vote.

[1:29:23] I wanted to share with you some testimony that was given to the Texas Senate Committee

[1:29:29] on Business and Commerce in this interim period.

[1:29:34] The interim charge is examine the causes and impacts of recent supply chain disruptions on the Texas economy and

[1:29:41] individual industries, study the factors that weaken links in the supply chain and the extent the pandemic has

[1:29:47] exposed those vulnerabilities, and recommend actions to strengthen the supply chain in Texas and mitigate disruptions.

[1:29:53] and the Port of Corpus Christi as well as other members of the Texas Port

[1:29:57] it's associated.

[1:30:00] Testimony and I'm just going to give you a brief summary of that testimony. That testimony was given by Roger Reese, my counterpart at the CEO of the Port of Galveston. He's also a member of the Port Authority Advisory Committee, as am I, that's an appointment by the Texas Transportation Commission. There are six of us that sit on that, the pack, as we call it, the Port Authority Advisory Committee. And he was given this testimony on behalf of pack and

[1:30:29] of TPA.

[1:30:33] In brief, the Texas port system that boasts the largest container port in the

[1:30:41] U.S. Gulf, the largest brake bulk gateway in the U.S. Gulf, the largest energy export gateway

[1:30:47] in the U.S. in the United States, that's the port of Corpus Christi, and certainly the largest

[1:30:52] port in the United States and total revenue tonnage, also the port of Corpus Christi.

[1:30:59] Overall,

[1:30:59] in the U.S. and waterborne commerce handling over 600 million tons of foreign and domestic cargo

[1:31:05] and adding about $450 billion in total economic value for the state of Texas that impacts nearly

[1:31:12] two million jobs and generates over $100 billion in personal income. It's also important to note

[1:31:19] that there are three strategic military ports as designated by the Department of Defense as the

[1:31:25] the Port of Corpus Christi is one of those designated strategic military load centers.

[1:31:31] Texas ports have been preparing for supply chain growth for some time.

[1:31:35] And in the last five years, our ports have invested nearly $2 billion in facilities

[1:31:39] and have leveraged nearly $100 billion of private investment over that same period.

[1:31:44] Five Texas ports have authorized federal channel improvement projects but

[1:31:47] continue to lack sufficient federal funding and causing delays and opportunity.

[1:31:52] Authorization for two more Texas channel improvement projects is pending.

[1:31:56] The port of Houston has a graduate project that scheduled to begin this summer that will accommodate larger vessels loading heavier with more cargo that since increase in the cargo influx.

[1:32:06] Through the pack, we've identified more than $3.6 billion of planned projects in the port system.

[1:32:13] And by the next year, the ports will invest more than $3.2 billion into our facilities for ship channel deepening and widening projects.

[1:32:21] We anticipate that this will leverage nearly $70 billion of additional private investment in the next five years alone.

[1:32:28] But as a port system, we are in dire need of legislative support to accommodate the growth we continue to see in Texas that has been challenged by the pandemic and supply chain constraints.

[1:32:39] The 2022-2023 Port Mission Plan recognizes over $2 billion of needed state funding, and the Texas Transportation Commission previously included $460 million in PACS total request for our 2022-2023 legislative appropriations request.

[1:32:59] The reason why I bring this up is because there is a port access fund that was created by the state legislature, I believe the NELDA 2017, it has never been funded.

[1:33:14] And Speaker Fielin has indicated that this next session will be designated the infrastructure session.

[1:33:20] And because there is nearly $25 billion surplus in state coffers, we believe that that's an opportunity for us to really

[1:33:28] We enhance our investment in the state's ports and the port of Corpus Christi, even though we have had great success in our in great financial condition, certainly warrants more investment and the state needs to do more and I know that the governor, the tenant governor and certainly this speaker as has been pass speakers have been very supportive of ports and as we bring any contemplated legislative agenda to you.

[1:33:56] So this is really what we're going to be focused on is funding at the state level for Texas

[1:34:02] ports.

[1:34:03] We have hired as a member of the Texas Port Association, I'm happy to announce that

[1:34:07] we have hired for the first time in our history, a full time executive director and CEO of the

[1:34:13] Texas Port Association.

[1:34:15] There are 22 members of the TPA.

[1:34:18] The young lady that we hired, her name is Glenat Brune.

[1:34:22] He might recognize that last name.

[1:34:25] She's the husband of Beck Brune, who is a good corpus christian.

[1:34:29] She resides in Austin, and we're very much looking forward to her leadership at the TPA.

[1:34:36] She has over 15 years of association experience with the Texas Truckers Association.

[1:34:41] We're very happy to have her.

[1:34:44] Moving to the federal level, Congressman Cloud will be testifying in support of our channel

[1:34:48] improvement project funding that last tranche of funding $157 million that was

[1:34:55] included in the president's budget he'll be testifying at the U.S.

[1:35:00] And the committee on appropriations, energy and water development and related agencies, tomorrow, in Washington, D.C. In addition, Congressman Cloud, along with several other Congressional members, including Congressman Brady, Congressman Flueger, Congressman Babin, and Congressman Vincente Gonzalez submitted a letter to the House Appropriations Committee in support of holding up this funding for the project. And might I just encourage you in your travels and

[1:35:29] and travails to our congressional delegation if you would kindly remind them that it's important for us to have this project closeout funding.

[1:35:38] I know you go to DC often for other business reasons, particularly you on the banking side.

[1:35:43] If you could just sprinkle in and ask for this as well, we certainly would appreciate that.

[1:35:49] The Senate Environment and Public Works Committee unanimously approved their award bill.

[1:35:55] The Water Resources Development Act Commissioners, for you new commissioners, is the primary federal legislative tool and vehicle by which ports are and waterways are developed and appropriated for both operations and maintenance, as well as for capital improvements and other associated costs.

[1:36:18] That word of bill is usually a bipartisan bill.

[1:36:21] This word of bill includes two provisions specifically for the Port of Corpus Christi.

[1:36:27] One is authorizing language that will allow the Corps of Engineers to dispose of perpetual easements that are no longer needed by the Corps of Engineers.

[1:36:38] The Port of Corpus Christi ended into perpetual easements with the Corps over our hundred past years.

[1:36:45] There's many of those easements are no longer needed by the Corps of Engineers.

[1:36:49] But because they were designated perpetual, there is no mechanism in place for

[1:36:54] the Corps to dispose of them, and what we're finding is perpetual is a very long time.

[1:36:59] And so what we are doing is through legislative action, this legislative action,

[1:37:03] which the Corps supports, will allow them to dispose of those lands and

[1:37:08] have those lands revert back to the Port of Corpus Christi for our primary control.

[1:37:13] The other authorizing language would be the release of the CORE's building, next door the CORE is planning on disposing of that asset, and we believe that that asset would be a great addition to our infrastructure and perhaps an opportunity for us to then move the harbor master out, which would then allow us to perhaps consider freeing up that annex building for either other utilization or disposition.

[1:37:42] There are two, obviously there's a Senate version and there's a House version.

[1:37:46] One version has the perpetual easement disposition in it, one version does not.

[1:37:53] It will go through a reconciliation in our Washington, DC consultants tell us that there's a good strong chance that that provision will remain in the final version of the legislation, so stay tuned on that.

[1:38:07] And by the way, we are planning a trip to Washington, Mr. Chairman, and

[1:38:12] commissioners in the coming month, including perhaps a trip to the White House,

[1:38:17] and we'll keep you posted as we're working on that as we speak.

[1:38:21] I want to move on to just some highlights of our recent trade mission, our trip overseas.

[1:38:29] I, along with commissioners Gera, Ahojia, and Gully, I went to the Netherlands with port staff.

[1:38:35] I'll save some of the details for you commissioners because we certainly would like to hear from you and your experiences, but we had great meetings with agencies like the Port of Amsterdam, the Port of Rotterdam, as well as members of industry, including Eric LeKeed, who is a customer of ours here and also has a pretty significant presence in Rotterdam and other industry members.

[1:39:01] And I will say that I just want to share the highlight of the trip for me was at least to Holland was not only to see the Port of Rotterdam again, which I've seen many times over my 30 year career, but it is no less impressive every time that I've been there.

[1:39:19] It is the largest port in Europe, and it is the largest single recipient of crude oil from the Port of Corpus Christi.

[1:39:25] We've had a great relationship with them for now a number of years and are continuing to

[1:39:31] expand on that relationship and met with many of their leaders.

[1:39:35] They also introduced us to the mayor of the city of Rotterdam and if you'll just indulge

[1:39:40] me for a moment, I just want to share.

[1:39:42] That was a highlight of my trip to the Netherlands and the reason for that is he's the longest serving

[1:39:50] mayor in Europe, serving as Rotterdam's mayor since 2008, his name is Ahmed Abu Dilem.

[1:39:57] And he was named the best mayor in Europe.

[1:40:00] In 2021, by the London Bay City Mayor's Foundation, and I certainly, from my experience, can see why. Mayor Abu Dilem represents the Labor Party in the Netherlands. He's a Moroccan immigrant from humble beginnings. He's an electrical engineer. He's a journalist. He's a husband, a father of four, and a practicing Muslim. Mayor Abu Dilem spoke of the importance of engagement with all members of the community in order for civilizations to evolve.

[1:40:27] He doesn't view the role of government or industry to force

[1:40:31] factional agendas.

[1:40:33] Rather, he sees the role of governments and industry to lead

[1:40:37] civilized change through the constructive engagement of the people.

[1:40:42] All people, civilized people.

[1:40:45] And in my experience, rarely does one meet a politician who speaks softly

[1:40:50] from the heart, but speaks the truth.

[1:40:52] And he left the lasting impression on me.

[1:40:54] And I certainly believe that he is a role model that many of us here in the United States could emulate, and I want to thank Mayor, a bootleg for his generous time we did invite him here to meet with our mayor and meet with our city leaders and we hope that he takes us up on our on our offer.

[1:41:14] We also went to Israel, and that was also very eye-opening.

[1:41:20] That was my first time in that startup nation, as they self-proclaimed themselves.

[1:41:27] And we visited two large-scale sea water desalination facilities, both of which were producing

[1:41:33] well over 100 million gallons per day.

[1:41:36] We found it to be very eye-opening in their leadership.

[1:41:40] They were a state that had, they do not have natural water resources except for the Sea of Galilee,

[1:41:46] which is really dependent on surface water and snowpack and snow melt.

[1:41:51] They are now one of the largest producers of sea water, desalinated sea water on the planet.

[1:41:58] They have a water surplus and are now exporting their water to their Arab friends in Jordan.

[1:42:03] 80% of their effluent is recovered and used in the agriculture space.

[1:42:08] They've been very bold about their investments, and at the same time, a very tentative to the impacts on the ecosystem.

[1:42:18] And I found it to be quite an eye-opening experience, and I certainly hope we'll have an opportunity to learn more from them and other countries who are doing that.

[1:42:29] We also met with the ports of Haifa and Ash Dodd, two of the largest ports in Israel.

[1:42:41] And I was the CEO of the Port of Ash Dodd, was kind enough to present me with this plaque.

[1:42:49] And if you'll just let me read it to you.

[1:42:51] Dear Sean Strawbridge, people love doing business with people who love their business, Shalom.

[1:42:58] I thought that was a very kind for them to share that.

[1:43:03] They were very welcoming.

[1:43:04] We ate, we broke bread with them and we shared an ideas.

[1:43:09] Some of which they've got a community that doesn't want to see more industrial, industrialization

[1:43:15] in that area there and so some of the challenges that they faced in working with the community

[1:43:20] on balancing industry and what the residential community wants.

[1:43:24] We saw some of that in Amsterdam and Rotterdam and certainly in Haifa.

[1:43:30] And then the port security, certainly in Ashtaud was impressive, every guard had a Uzi,

[1:43:35] and they required us to give them our passports, which we weren't getting back until we left.

[1:43:41] But it was a great trip.

[1:43:44] We met with, I think, six or seven technology companies in the areas of port security,

[1:43:49] water, quality, oil spill prevention.

[1:43:52] And I certainly can assure you we were not leaning on the rake, it was a very, very productive trip and I look forward to hearing from the other commissioners.

[1:44:04] As you all know, one of the highlights of my briefing is to welcome new employees to the Port of Corpus Christi.

[1:44:11] So if you will, I'd like to first welcome Fernando Quintanilla.

[1:44:15] He joined the Port of Corpus Christi on my birthday, April 25th.

[1:44:19] As a project engineer, one, he reports to Maria Rivas, our Chief of Design and Construction,

[1:44:25] and most recently Fernando worked for the City of Iran's flat pass.

[1:44:29] Next is David Gibson.

[1:44:31] He joined the Port also on April 25th as a police officer.

[1:44:34] He reports to Chief John Amor.

[1:44:36] Most recently worked for the, David worked for the Corpus Christi Police Department.

[1:44:40] Next is William Tate.

[1:44:42] He joined also on April 25th as a police officer.

[1:44:45] He also reports to Chief Giannamore and most recently, William worked for a Ranzas

[1:44:50] Firearms LLC.

[1:44:53] Next is Havita Gomez.

[1:44:55] She joined the Port of Corpus Christi as a police officer as well.

[1:45:00] Deputy and our police department, as she reports to Chief Deonamore, and most recently,

[1:45:05] Jolvita worked for the Portland Police Department. Next is Gabriela Gabriela Gabriela Gabriela,

[1:45:12] she joined as our safety field representative, as she reports to John York, our safety manager,

[1:45:18] and most recently, Gabriela worked for CVS Pharmacy. Next is Patricia Aguilar, joining the

[1:45:25] of Corpus Christi as our revenue specialist.

[1:45:28] She reports to Jennifer Cantu, our lead revenue specialist,

[1:45:31] and most recently Patricia worked for L.K. Jordan.

[1:45:35] Next is Victoria Harrison.

[1:45:37] She is our organizational development assistant.

[1:45:40] She reports to Lorraine Parada Valdes,

[1:45:44] the organizational development manager,

[1:45:46] and most recently Victoria worked for Zachary Group.

[1:45:50] Next is Kyle Brown.

[1:45:51] He joined on May 23rd as our channel

[1:45:53] and DMPA project engineer, he reports to Dan Cusema,

[1:45:58] our director of channel and DMPA development,

[1:46:00] and most recently, Kyle worked for Connolly Pacific

[1:46:03] and company.

[1:46:04] Next is Mercedes Gonzales joining on May 23rd yesterday

[1:46:08] as our new vessel traffic controller reporting

[1:46:11] to Russell Cordo, our harbor master.

[1:46:14] Most recently, Mercedes worked for Ascension

[1:46:16] Seaton Medical Center.

[1:46:19] Next is Cresselda Gare.

[1:46:22] She will be the administrative assistant to our chief sustainability, chief strategy

[1:46:28] and sustainability officer, Jeff Pollock.

[1:46:31] Jeff has been carrying too much water by the way and I'm trying to impress upon him the

[1:46:36] importance of delegation so it's good to see him finally higher and an executive assistant.

[1:46:42] Most recently, Cresselda worked for the city of Corpus Christi in the public health district.

[1:46:47] And lastly, but certainly not least, it's my, it's my distinct pleasure to introduce UD, UG, excuse me, it's pronounced UG, but it's spelled UD, Y UDI, and it's a funny story on that there was a misspelling on his birth certificate and it's stuck.

[1:47:07] But Marcelo UG Takazawa, who joined us on April 25th, is our new director of trade development.

[1:47:14] He reports to Omar Garcia, our chief external affairs officer.

[1:47:18] And most recently, UG was a commercial manager for VOPAC, where he's spent 15 years.

[1:47:23] And I have particular ambition for UG.

[1:47:29] He brings not only a commercial bent, but also an analytical bent to the commercial position.

[1:47:35] And it's already bringing relationships as was evidenced by his presence on our trip to the Netherlands where he had a tremendous amount of relationships, existing relationships that were brought to bear.

[1:47:48] He has been introduced to our customers here locally and when you see UG commissioners, if you would please, introduce yourself to them.

[1:47:57] All there he is right here, UG, UG Takazawa, UG, born in Brazil, speaks three languages.

[1:48:07] Japanese is not one of them we found out from our visit with Mitsubishi, but brings

[1:48:13] tremendous industry experience and acumen and I'm just so pleased to have UG here at the

[1:48:19] port of Corpus Christi, welcome, UG.

[1:48:22] We have a new seaport star for the first quarter of 2022 and I'm going to pass that to

[1:48:26] to all more to speak about our new Seaport Star Commissioners.

[1:48:31] Thank you, Sean and Commissioner, you would just allow me a few minutes to talk about our Seaport Star for the quarter, Brianna Garza.

[1:48:38] Brianna started as an intern in the business development office in the spring of 2019 while attending the A&M Corpus Christi.

[1:48:44] She later moved into her current position as the administrative assistant, the chief external affairs officer, in September of 2019.

[1:48:51] team. Brianna epitomizes leadership and the value of teamwork in action by her unwavering

[1:48:56] support of not only external affairs but other board departments. Brianna is a high-performing

[1:49:02] member of the external affairs team and exemplifies support C-port values which include safety,

[1:49:08] empowerment, accountability, preparedness, optimism, respect, and teamwork. As our workloads continue

[1:49:15] to grow during the pandemic and just with the normal workload, it became very apparent

[1:49:20] that Brianna has several skills outside of her current role.

[1:49:23] And so Brianna is a very integral part of this team where if I need help or trade development

[1:49:28] needs help to help with the booth, the help with marketing, she's my go to when community

[1:49:32] relations needs help with other events.

[1:49:34] We have so many events, so many volunteer opportunities.

[1:49:37] She's my go to assist in helping with that as well too.

[1:49:39] So she is an integral member of my team and please don't be fooled by her title.

[1:49:45] She is currently in the MBA program and is going to, she has one more semester left that

[1:49:49] Anand Corpus Christi to complete her MBA.

[1:49:52] I feel very strongly that her future is very bright at the Court of Corpus Christi and

[1:49:57] she will be a future.

[1:50:00] Here within this organization. So we look forward to many more years of meaningful contribution. And, Brianna, I can't thank you enough for all that you do for me, the team, and the poor. Congratulations.

[1:50:12] And I also add that while she has a robust workload, she also helped in the fine gentleman to my right who finally hired an assistant. So she had that not only deal with me, but also with Jeff. So again, Brianna, congratulations.

[1:50:32] Okay. Thank you, Omar. Commissioners, I've asked Brenda to hand you these hats.

[1:50:37] That's these hats represent our new short line railroad relationship with WACCO.

[1:50:45] The short line has now called the Texas Coastal Bend Railroad and as you can see, it has the

[1:50:51] great state of Texas in the logo as well as the Port of Corpus Christi's logo.

[1:50:55] And we're certainly looking forward to this new relationship with WACCO, our short line

[1:51:00] railroad.

[1:51:00] They take over in August and Clark, I know you spent most of the time over the last year

[1:51:05] and a half bringing them on.

[1:51:06] I don't know if there's any comments you'd like to make.

[1:51:09] No comment other than you can expect there will be a couple of locomotives showing up here rather soon that'll be painted in port colors and port logo.

[1:51:19] So look forward to seeing that.

[1:51:22] And commissioners, don't let those abysmal rail numbers fool you.

[1:51:28] There is a tremendous amount of rail business that is pending not only in rail car movements,

[1:51:35] But certainly storage and so we will be bringing some of these storage agreements to you in the coming months.

[1:51:41] We do see rail as a big area of constraint right now and more investment is going to be needed and necessary in the rail space.

[1:51:50] And then lastly, let me just quickly talk about some upcoming events that I think warrant your consideration of attending.

[1:51:57] I mean, first is the women's shelter of South Texas, also known as the Purple Door.

[1:52:02] They have their great expectations luncheon on June 14th from 1130 to 1 right here at the

[1:52:08] Salomonore T Center and the port does have one table of 10.

[1:52:12] Also the corpus Christi black chamber of commerce has the state of the black business luncheon

[1:52:17] on June, for June 10th.

[1:52:19] That's on June 15th at the Boys and Girls Club of the Coastal Bend.

[1:52:24] We have one table of eight.

[1:52:25] The South Texas Judges and Commissioners annual conference will be here in Corpus Christi, the red dragon pirate cruises on June 15th as well at 130.

[1:52:37] Guess should arrive between 1 and 115 at the Corpus Christi Marina.

[1:52:42] We have six boat tour spots and looks like the judge, Judge Canalis will certainly be in attendance and I'm sure there will be commissioners as well.

[1:52:52] Well, perhaps Judge Krebs will be there as well.

[1:52:54] We certainly would like to see Judge Krebs.

[1:52:57] The Portland Chamber of Commerce will have their annual awards and installation banquet on the 16th of June at 5.30 pm at the Portland Community Center.

[1:53:07] The port has a table of eight.

[1:53:09] The Texas Economic Development Council will have their mid-year conference here in Corpus Christi.

[1:53:14] That's at the Omni Hotel.

[1:53:16] We currently have one registration, those registrations are $1,500, but if commissioners,

[1:53:21] Any of you have any interest in attending?

[1:53:23] Those are economic development corporations from around the state coming in to talk about economic development issues here in for our great state.

[1:53:34] And we're certainly looking forward to being represented by our very own Ian Vazy.

[1:53:39] And then lastly, in July, the Porter-Ranses Boatmans Association will have their 88th deep sea roundup.

[1:53:45] We have six wristbands and two tournament entries.

[1:53:48] I always offer those to Chairman Zon first and foremost, because we like to be represented well, but if the Chairman can't make it, we'll certainly try and provide to anybody who's interested.

[1:54:01] And lastly, just housekeeping note, our June commission meeting will not be the third Tuesday and June.

[1:54:08] It will be the second Tuesday and June that's June 14th at 9 o'clock right here in these chambers.

[1:54:14] Commissioners, that concludes my remarks.

[1:54:17] Thank you.

[1:54:19] Mr. Guerra.

[1:54:23] Just to comment a little bit on our trip to Rotterdam and the Netherlands.

[1:54:29] I think for me there were three primary takeaways.

[1:54:33] The first is the hydrogen discussion is real and certainly in Europe there are a lot more

[1:54:39] challenges that are going on in the world that we all know geopolitically speaking.

[1:54:44] I think Commissioner Hoskins mentioned something earlier that I believe obviously we have industry

[1:54:50] players in our own region who are looking at hydrogen grey and grey hydrogen and I certainly

[1:54:57] would like to understand.

[1:55:00] Or what local industry partners are doing. But the reality is that there's tremendous interest outside of in other companies that are looking. There were several meetings with some interest, business interest in the area around this discussion. So while this is new and there is federal funding for Hydrogen Hub, and we're beginning just to learn about that. I think it's something we need to expand, continue to expand our knowledge and understanding.

[1:55:28] There is on a worldwide scale that were companies like Shell and BP that were present as well and certainly was an enlightening opportunity for me.

[1:55:38] Companies like Shioeda Mitsubishi who we met with that were speaking of countries who lacked the natural resources and how this could create some energy dependence throughout Europe and other areas throughout the world.

[1:55:52] It's in a connection between the understanding that the Rotterdam is our number one crude partner.

[1:56:00] So the second thing I'd like to remark on is the MOU and the relationship that is obvious

[1:56:06] that both Omar and Jeff have had with the port.

[1:56:10] There was tremendous discussion.

[1:56:11] We met the president, the COO staff who spent a tremendous amount of time in discussion

[1:56:17] and understanding.

[1:56:18] I mean there is a well-seated relationship that exists and that's appreciated knowing, I learned a few things.

[1:56:26] Inclusive to the fact that Russian oil is making its way to India and on to the rest of the world.

[1:56:32] So there are a lot of things that were enlightening about that trip.

[1:56:35] And the other thing that I'd like to comment on is the opportunity to see that port and their discussion of how it evolved.

[1:56:44] And certainly how we continue to evolve with with our deep water port and the opportunities that continue to afford us here.

[1:56:52] If you haven't look up Moss lock, Rotterdam, it's a they've increased their port footprint by 20%.

[1:57:03] I am not much, I get enough engineering from banking west.

[1:57:06] this was an engineering marvel. They had a museum that talked about dredging and building and

[1:57:13] expanding both for their crude and energy and their container. It is a engineering marvel. But

[1:57:21] I guess the biggest thing there is again is the understanding that the world is connected to

[1:57:26] Corpus Christi and relationships are seeded and so that was appreciative to understand that connection.

[1:57:31] and our relationship and the fact that there are number one crude partners.

[1:57:36] So I appreciate the opportunity to understand and be educated.

[1:57:40] Thank you.

[1:57:47] Thanks, Chairman.

[1:57:48] I just to add to what Gabe said, the trip to Rotterdam was absolutely mind-blowing.

[1:57:57] The grandness with which Rotterdam has taught to expand their port and become as big as they

[1:58:06] or is amazing things we can learn from.

[1:58:09] And I'll move on to, I did continue onto the drill.

[1:58:14] The diesel plant was my very first visit ever

[1:58:17] to any diesel plant.

[1:58:18] And the amount of knowledge, the amount of information

[1:58:21] that I learned was just unbelievable.

[1:58:23] If you have your permission,

[1:58:25] I took a 58 second video of the diesel plant,

[1:58:29] where they're discharging the water right at the beach.

[1:58:33] Would you like to see that?

[1:58:34] I've just turned it over to them

[1:58:35] and they can show it's quickly.

[1:58:44] It's being discharged right there in the Mediterranean.

[1:58:48] 130,000 gallons per day going out into the Mediterranean

[1:58:53] sea from this diesel plant.

[1:58:55] The fishing is better, but

[1:59:07] beautiful beaches.

[1:59:32] Those are the power plants right next to it.

[1:59:43] I think you meant 130 million gallons a day

[1:59:46] that was being discharged.

[1:59:49] No, it couldn't be 130 million, 130,000.

[1:59:51] 130 million gallons a day that's been discharged, but it's amazing just to see the water going there into

[2:00:00] The military and not affecting, of course, a fish life or human life. And those people told us that the fishermen come up to that spot where the fishing is better. And how long has it been? Is it like a 17 year old plant? Yeah, I think that plant actually opened a little later than that. That looked like the Hedera plant. I think that was there in 2012 or 2013. Okay. And the other plant, the Sork plant had opened a little earlier than that. And obviously we saw a

[2:00:29] the, an expansion, they're a doubling of the size from a current 160 million gallons

[2:00:36] a day to, to, to double that.

[2:00:39] Right.

[2:00:39] You know, the one point that I do want to make is they are discharging into the ocean.

[2:00:45] And there's certainly, we talked about a lot of technical things there as, you know, the

[2:00:50] salinities and, and others, and there's a tremendous amount of knowledge and experience there that

[2:00:56] and I think this community can glean from that.

[2:01:00] Anyway, overall, it was a great trip.

[2:01:01] I'd love to give you all a show and tell one day.

[2:01:04] Got plenty pictures.

[2:01:05] Thanks, Sherman.

[2:01:11] Yeah, my takeaways, I guess, at the trip that we had

[2:01:16] and this has been a whirlwind month

[2:01:17] with all this happened the last month

[2:01:19] since our last meeting was amazing.

[2:01:22] And I'd encourage you to look on Google Earth at the Rotterdam

[2:01:26] and see that 2,000 acres of port

[2:01:29] that they artificially dredged up and made.

[2:01:32] The takeaway I got from that is they said they apparently have as much regulation or

[2:01:37] more regulation environmentally than we have and I think they started that project about

[2:01:42] 1969 and still it's just recently got finished so when we see these projects take a long time

[2:01:49] it's not that unusual around the world.

[2:01:52] Israel also has a lot of regulation they have to go through and they have to prove that what

[2:01:57] they're doing is not harming the environment, just as we do.

[2:02:00] We went over there, one of the big regions we went over there, it's for the Royal Hydrogen

[2:02:04] Conference.

[2:02:05] And Jeff Spoke is one of the speakers.

[2:02:09] He was quite a proud moment.

[2:02:11] He did a very good job.

[2:02:12] I'm trying to get the other part of the video, I videoed him.

[2:02:16] But it's one of those things that shows when we travel around these places and meet the

[2:02:21] people that are not the second tier or the third tier, but the guys that run the mayor

[2:02:25] of Rotterdam and the head of the port of Rotterdam and their COO and they're having dinner

[2:02:31] with us.

[2:02:31] And you realize, and in Israel and the heads of these different ports that we visited,

[2:02:38] that the Port of Corps Christie is a big deal and it's, we have a presence around the country

[2:02:45] in Washington, D.C.E. and San Diego when I've been out there in Austin, Texas, the American

[2:02:51] association of port authorities and we have a lot of respect and we got it

[2:02:57] everywhere except for a few people in the local area and that seems to be our

[2:03:02] issue but everywhere else we go it's quite proud to be a book commissioner for

[2:03:06] the port of course Christie they know who we are and they know how important we

[2:03:09] are we went on to Israel these these trips are not a real vacation because we

[2:03:18] We start out using it 7.45 in the morning.

[2:03:22] We hit the road and we don't usually finish until usually dinner when we're entertaining

[2:03:26] to different people at dinner.

[2:03:28] We don't have time to meet with during the day and sometimes 10 or 11 o'clock at night.

[2:03:33] And back on the road again 7.45 in the morning.

[2:03:35] So we'll put 13 hours a day, 14 hours a day a day a day a day.

[2:03:38] But we get a lot accomplished and a lot of that has to do with Tanna being able to fly by

[2:03:43] the seat of her pants and keep putting people in front of us and meetings in front of us.

[2:03:47] So we get to cover a lot of ground.

[2:03:49] We crisscrossed Israel and got to visit the three largest

[2:03:52] decile plants in the world.

[2:03:54] And walk through them, sort number one is the largest

[2:03:59] in the world.

[2:04:01] And we got to walk through every part of it.

[2:04:04] And then, her dura that he just showed you on the video,

[2:04:09] those plants, and sort number two,

[2:04:12] is being built exactly next door.

[2:04:14] And we get to see it during the construction phase.

[2:04:16] and to see, you know, 50,000 membrane canisters stacked up each one with its own monitors on it.

[2:04:25] And then to see this huge plant, this three, over three times as big as we're contemplating,

[2:04:31] five times bigger than the city's contemplating.

[2:04:34] And at night time, there's two people run that whole plant.

[2:04:38] They sit in the control room and run the whole thing, and one security guard at the gate.

[2:04:43] So it's quite fascinating and there's a book that we were given by the people of the

[2:04:51] sort plant that I would encourage, I'm going to see if we can get some copies that I think

[2:04:56] everybody to city and the county and the community needs to look at.

[2:05:00] It's let there be water. It's bestseller, and it's all about how Israel dealt with their water issues being in a desert with limited water supplies surrounded by enemies that have less water. And that's the reason they went on to develop these conservation practices. And that's the reason they developed diesel because IDE, which we spent almost every day with over there, is the company that

[2:05:29] that essentially invented desolization plants

[2:05:32] back in the early 80s.

[2:05:34] And so we spend a lot of time picking their brain

[2:05:37] and learning from them.

[2:05:38] They're the ones that up to design and operate.

[2:05:40] The largest one in North America,

[2:05:42] the largest one in China, the largest one in India,

[2:05:44] and they have the three largest in the world in Israel.

[2:05:47] So it's quite an experience, and we learned a lot.

[2:05:52] And I wish we could have taken more people with us

[2:05:54] to see that.

[2:05:57] We can always go back, Commissioner.

[2:06:00] Thank you, Commissioner.

[2:06:00] If any of you commissioners would like to, any of you that didn't go,

[2:06:04] I would certainly encourage that opportunity, as well as any of the local leadership who have interest in DSA.

[2:06:11] It is impressive.

[2:06:15] Commissioner Hoskins.

[2:06:17] I saw an interesting slide in here where we received a large ship and a wind turbines.

[2:06:23] Where are we on our wind turbines?

[2:06:27] We haven't had it, we haven't had an update in a while.

[2:06:29] So, we're still working with the customer who's doing their due diligence right now on the deconstruction of the existing turbines.

[2:06:37] It's continuing to progress. We have a couple of opportunities with this customer and so we still feel very confident we're going to get that done.

[2:06:43] It's just taking some time. I talked to him yesterday.

[2:06:49] By the way, I do want to just go back to the trip.

[2:06:53] I don't want to fail to mention that Kiwit was also in attendance on that trip with us learning a lot.

[2:07:01] They are in the water development and construction business and they sent their executives from Dallas to attend that trip as well.

[2:07:11] And having somebody that we already have a local relationship with I thought was also valuable to spend some time with them.

[2:07:24] And I don't have any comments, so at this time the port commission will now go into a closed meeting.

[2:07:33] The port commission will now go into a closed meeting pursuant to sections 551.071 551.072 and 551.074 of the Texas government code.

[2:07:46] to deliberate agenda items 13b through 13d.

[2:08:04] The commission has come out of executive session at 130, and I'll take a motion to adjourn.

[2:08:12] Second.

[2:08:12] All those in favor, aye, it's non-debate of those, Dr., it's Chairman Rosalind, say, we're closed, thank you.

Port Commission

Agenda

Transcript