port director’s report

Port Director’s ReportJuly 28, 2020

Cargo At a GlanceJune 2020 YTD vs. 2019 YTD

The Port was up 20.8% in bulk grains (with no grain ships in Jan or Feb)

The Port was down 28.0% in fertilizer

The Port was down 14.6% in liquid bulk (includes PISTI)

The Port was up 17.5% in bulk and containerized produce

The Port was down 35.8% in RORO cargo

The Port was down 47.4% in new car tons

The Port was up 32.9% in wind and general cargo

The Port was down 15.8% in total vessel calls primarily related to cruise

The Port was up 1.8% in total lay vessel calls

www.portofgalveston.com

Cargo Statistics


YTD June 2020

Actual

YTD June 2019

Actual

Over (Under) Last

Year %

Bulk Grains 388,954 321,926 20.8%

Bulk Fertilizer 223,252 309,862 -28.0%

Bulk Liquid 708,973 830,633 -14.6%

Bananas / Fruit 207,278 174,527 18.8%

Containerized 117,672 101,962 15.4%

Ro-Ro Cargo 168,901 263,198 -35.8%

New Cars Tons 7,320 13,907 -47.4%

Wind & General Cargo 95,735 72,016 32.9%

TOTAL 1,918,086 2,088,032 -8.1%

(In Short Tons)

Port of Galveston/GPFC

Year-To-Date Tonnage Handled Over Facilities and Other Port Activity as of 6/30/2020

Lay DockageFor the last 12 months, lay revenues are $3,977,174 – 26.3%

over revised 2020-B budget, 56.2% over original 2020-A

budget, and 32.8% over last 12 month actual


$211 $221

$396

$203 $219

$277

$411

$480

$389 $379

$283

$510

$150 $134

$149 $137 $145 $163

$411

$480

$389

$331 $331 $331

$170 $200

$119

$166

$203

$239 $244 $225

$366

$419

$382

$263

$-

$100

$200

$300

$400

$500

$600

Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Monthly through June, 2020(in thousands)

Actual Budget Prior Year

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5wpSPuJHXAhWmh1QKHfZED6gQjRwIBw&url=http://clipartix.com/starburst-clipart-image-40287/&psig=AOvVaw13StW3YRwjakxFl0SGBvmZ&ust=1509215524471272

Ship Calls


YTD June

2020 Actual

YTD June

2019 Actual

Over

(Under)

Prior

Year %

Cargo 150 171 -12.3%

Cruise 69 135 -48.9%

Lay 223 219 1.8%

Total Calls 442 525 -15.8%

Port of Galveston/GPFC

Year-To-Date Ship Calls as of 6/30/2020

Financial Summary


YTD June

2020 Actual

YTD June

2020

Budget

YTD June

2019 Actual

Over

(Under)

Budget %

Over

(Under)

Prior

Year %

Operating Income 17,120,431 16,952,039 23,814,491 1.0% -28.1%

Operating Expenses 15,793,467 16,258,123 18,357,517 -2.9% -14.0%

Net Operating Income (Loss) 1,326,964 693,917 5,456,974 91.2% -75.7%

Non-Operating Income 581,134 533,236 537,892 9.0% 8.0%

Non-Operating Expenses 757,291 798,252 899,821 5.1% 15.8%

Net Income (Loss) 1,150,807 428,901 5,095,045 168.3% -77.4%

Add: Depreciation and Amortization 3,246,076 3,356,399 3,179,605 3.3% -2.1%

Subtract: Debt Principal (1,889,218) (1,889,218) (1,623,013) 0.0% -16.4%

Ending Cash Flow from Operations 2,507,665 1,896,081 6,651,637 32.3% -62.3%

Year-To-Date Income and Cash Flow from Operations as of 6/30/2020

Moody’s Review of Rating


• Does not announce a credit rating action

• Very low debt burden of $28 million as of FY 2019

• Suspension of cruise line sailings has negatively affected the port

• Major cruise lines like Carnival Cruise Lines and Royal Caribbean Cruise Line have suspended sailings until September 2020

Grants and Pending StatusAGENCY PROJECT

TOTAL PROJECT COST

STATUS

FEMAScope Alignment – West End Close Slips Pier 35-41 (Master Plan)

$16,529,828 SRIA Advancing

TXDOT Maritime Port Mission Plan N/A Submitted

U.S. DoT(BUILD)

West End Infrastructure Improvements $25,000,000 Awaiting Final Determination

U.S. DoT - MARAD(PIDP)

West End Infrastructure Improvements $19,500,000 Awaiting Final Determination

U.S. DoT – FRA(CRISI)

Preliminary Engineering and Permitting for West End Infrastructure Improvements

$2,250,000 Submitted

EDA East End Pier Improvements $3,100,000 Rolling Applications

General LandOffice

Drainage TBD Due October 7, 2020

Texas Emission Reduction Plan

(TERP)Shore Power TBD Due October 7, 2020


Business Interruption Just-In: First Covid-19 Coverage Decision Issued

Currently, hundreds of declaratory judgment actions, addressing coverage for business interruption losses caused by the coronavirus.

1st Judgment:Michigan Circuit Court Judge Joyce Draganchuk granted the insurer's motion for summary disposition in Gavrilides Management Company vs. Michigan Insurance Company. At issue was coverage for restaurants that were shuttered by Covid-19-related government orders. The court concluded that no coverage is owed.

Here are the highlights of the Judge's decision: • The court explained that coverage is provided for actual loss of business

income sustained during a suspension of operations. The suspension must be caused by direct physical loss of or Damage to property.

• Direct physical loss of or damage to the property "has to be something with material existence. Something that is tangible. Something . . . that alters the physical integrity of property."

The court rejected the argument that the Virus Exclusion is "vague." The court held that the virus exclusion would apply even if direct physical loss or damage existed.

Tariff Taskforce

Tariff taskforce initiated on 3/4/2020:• Primary objectives:

1. Streamline make more user friendly2. Waterfront focus

• All changes red-lined for easy review and discussion• While working from home due to Covid19, the Administration staff restructured the

tariff based on subject matter – to make more logical• Operations team reviewed, made recommendations, is working with Administration

staff to make changes. Operations team changes are 90% complete. There will be another meeting within the next month to finalize.

Next steps:• Public Safety, Engineering, Finance, and Mobility teams will review updates and make

their recommended changes.• A series of final review meetings will take place with entire taskforce.• Port Director will review changes.• Final updated tariff will be submitted to the Board for approval.

Procurement UpdateRFP/RFQ/RFB STATUS

Police Department Body Cameras

Project underway.

Gate 40 Canopy Project underway.

Parking Consultant Services

Solicitations received on March 20, 2020. Discussions underway.

Railroad Consultant Solicitations received on April 17, 2020. Evaluations continue.

Decontamination and Disinfect Port Buildings

Solicitations received on May 8, 2020. Negotiations underway.

Janitorial ServicesDeveloping RFP for 2020 solicitation. Departmental requirements collected. Anticipated publication of solicitation July/August 2020.

Escalator and Elevator Maintenance

Developing RFP for 2020 solicitation.

Shuttle Operations Responses due August 5, 2020.

Pre-Disaster ContractsSelection of and contracting with vendors through OMNIA. Contracting complete.


Human Resources

Activities:

• Employee evaluations submitted July 15th - next step validation committee.

• Implementing ADP Policy & Procedure “Corner” -employee portal for all approved Policy / Procedures

• Updating essential personnel for disaster

• Lunch & learn: Purchasing Made Easy, July 17th

• Next Lunch & Learn: Documentation for Managers & Supervisors, August 21st

• Certifications – Ellie Byrom, Certified Grant Writer®, from American Grant Writer’s Association

• Leadership Galveston

• Graduated - Laura Camcioglu

• Next Class:

• Brenda Lambright

• Gloria Hernandez

COVID-19:

• Employees in office, masking, social distancing

• Temperature checks upon arrival to SMP, 8th Fl

• PPE handed out to staff, available as needed

• Staff is monitoring the port’s tenants and labor force (ILA and stevedores) on a weekly basis

• Two staff members tested positive they are being quarantined in their homes for 14 days– Two staff members have been exposed to someone who had tested positive that are also self quarantining at home.

• Staff continues to participate in conference calls with statewide emergency managers and local government officials

Pelican IslandConcepts for Consideration

Community Ideas

• Leave remaining trees, serve as habitat

• Carbon storage - Investigate monetary benefits Create three or four shallow troughs to collect rainwater for birds.

• Allow fishing at water's edge.

• Allow more access to birders and walkers.

Limited access during Feather Fest for birders.

• Create a hiking trail around the perimeter or through the property.

• Create a bike trail, eventually connecting to a bike trail on the main road and across the new bridge.

L-R Vice Chair, Elizabeth Beeton, City Council Member Jackie Cole, Priscilla

Files Galveston Island Tree Conservatory, Denise Frank, and Port Director

Rodger Rees during a walking tour of Pelican Island to discuss the different

beneficial ways to use the property before the land is leased.

Pelican Island

Concepts for Consideration

Revenue Opportunities

• Memberships/Parking

• Carbon Credits

Local and Regional Tipping Fee Summary

Port Tipping Fee

Port of Houston $4.12 per cubic yard, plus up to an additional$6 per cubic yard for the use of the USACE placement area. Private business are charged $12-14 per CY.

Port of Texas City $3.75 per cubic yard in the General Land Office’s placement area. POTC does not maintain the spoils area.

Port of Freeport $4.00 per cubic yard, plus up to an additional$6 per cubic yard for the use of the USACE placement area.

Port of Beaumont $4.00 per cubic yard, plus up to an additional$6 per cubic yard for the use of the USACE placement area

Local and Regional Tipping Fee SummaryKey Points

All of the ports surveyed utilized the United States Army Corps. of Engineers placement area.

These ports administered a tipping fee separate from the USACE’s tipping fee. On average, the requesting user would pay up to $10 per cubic yard to place material in the USACE’s spoils area.

The placement areas including the levy system are maintained by the USACE.

The Port of Galveston charges a flat $6 per cubic yard for any entities other than those required by the Port to dredge, to utilize our placement area when available. All maintenance, permitting processes and the levy system are managed and maintained by the port.

The Port is in the process of reassessing our current rates to ensure market rates are in-line with our costs.

Carbon Credit Programs• Forest Carbon Project Types

• Learn from the Experts:• USA Office of Environmental Markets website• USDA Forest Service Carbon Sequestration website• Texas A&M Forest Service Ecological Services website• Ducks Unlimited Carbon Sequestration Program• Ecosystem Marketplace’s Carbon Market Watch

• The Chicago Climate Exchange (CCX)• CCX members make a voluntary, legally binding commitment to meet annual emission reduction• Small forest landowners can participate in providing offsets through an aggregator• The amount of stored carbon is determined through modeling or reference tables.• Offset credits can generate extra revenue• Multi-year commitments, eligibility,

Project Types Description

Projects involve restoring tree cover to previously non-forested land.

Afforestation projects have high costs because they generally require significant

planting and maintaining trees.

Preventing the conversion of forested land to non-forested land.

AC project developers must demonstrate that the forested land is under

significant threat of conversion for an AC project to be viable.

Improved Forest Management (IFM)Projects involve land management activities that increase or at a minimum

maintain the current level of carbon stocking.

Afforestation/Reforestation (R)

Avoided Conversion (AC)

Types of forest carbon offset projects

2020 Information Requests

as of July 16, 2020


Month No. of Requests

Jul. 2019 14

Aug. 2019 13

Sep. 2019 8

Oct. 2019 17

Nov. 2019 9

Dec. 2019 10

Jan. 2020 18

Feb. 2020 13

Mar. 2020 13

Apr. 2020 3

May 2020 9

Jun. 2020 6

Jul. 2020 5

Administration: 30

Police Response: 37

TOTAL: 67

2020 REQUESTS

*** Trustee Information Requests (YTD): 64 requests, with a total staff time of approximately 142.25 hours.

FEMA ProjectsDR 1791 - Hurricane Ike:• The Port has completed close-out packages for all 49 projects.• Submitted alternate project scope of work to FEMA – West End SRIA $16.5M• Application of insurance – FEMA supplied updated Insurance application schedule. Cross referencing

with historical data previously submitted by previous Port administrative staff. • Staff are responding to requests for information to assist with close-out of all projects.

DR 4332 - Hurricane Harvey:• All six projects are complete, totaling $721,815.63 .• All but dredging has been reimbursed. • To date, received $206,180.50 from FEMA for Harvey.• The Port has submitted USACE permitting to FEMA for review, awaiting response.

DR 4485 - Covid 19:• Submitted Request for Public Assistance, Designated Sub recipient Agents & Direct Deposit in FEMA

grants portal.• Continue monitoring of ongoing pandemic on State and National level.• Staff continue to document for purchasing related to COVID19, i.e. purchase of PPE and disinfection of

the cruise terminal. • Staff will begin submitting for reimbursement quarterly, beginning 3rd quarter.



Incident Statistics Report - 2020 YTD

Crime/Incident Total

Assault By

Contact/FV/Threats 2

Assault - Int'l Waters 1

Terroristic Threats 1

Att/Sexual Assault - Int'l

Waters 1

Deceased Person (Cruise

Ship) 4

Contraband-All Other 3

Contraband-Ammunition 144

Contraband-Firearms 3

Contraband-Possesion of

Marijuana 1

Contraband-Possesion of

Narcotics 0


Burglary Auto/Hab/Buis 0

Theft/Attempt/Int'l

Waters/All 10

Fraudulent Document/

Fraud 1

Criminal

Mischief/Trespass/Int 0

Disturbance/DC/Harrassm

ent 0

Suspicious

Activity/Person/Drones 2

Unlawful Carring Weapon 1

Violation of Protective

Order 0

Public Intoxication 1

POCS - Xanax / All PG 2


Poss. Of Marijuana 4

Poss. Of Paraphernalia 10

Warrant Arrest 32

Incident/Investigation/Infor

mation 4

Missing/Lost/Stolen/

Property 6

Recovered Property 7

Property

Damage/Fleet/Other 39

Missing Person/Found 0

Fire 2

Medical/Sick/EMS Call 3


Breach of Security-NRC 1

NRC Reports (Spill) 0

Accident/Hit&Run/Fleet/Mi

nor 30

Marine/Industrial Accident 0

Towed

Vehicle/Abandoned 1

Warnings 112

Parking Tickets 125

Traffic 6

Off Duty Incident 0

Citations 195


West End Project - Truck Scale

Truck Scale Estimated Installation Cost- $90,000- $125,000 (fully automated system)

Estimated Annual Maintenance Cost- $7,600

Estimated Annual Revenue- $71,760•Revenue is based on a $12 user fee and 115 users a week (2016 survey)

Possible Annual Revenue Stream of $64,160!

Cruise Terminals-Safety & Wellness SolutionsContinuously Self-Cleaning Surfaces

These systems provide continuously self-cleaning surfaces with safe, non-toxic materials. It turns

dirty, high traffic public touchpoints into visibly cleaner surfaces.

It will provide less worry and a healthier environment in our cruise terminals.

These are skins and mats that turn dirty high traffic, public touchpoints into continuously self-

cleaning surfaces. These surfaces utilize mineral nano-crystals which create a powerful oxidation

reaction.

Working 24/7, the surface continually oxidizes organic contaminants. Unlike traditional

disinfectants and cleaners, the surface uses no poisons, heavy metals or chemicals, and

nothing is released from the surface since the nano-crystals are molecularly bonded to the

material.


Cruise Terminals-Safety & Wellness Solutions

Escalators

Viruses, bacteria, and other microorganisms can potentially lurk on frequently touched surfaces such as an escalator’s handrail. Concerns about unsanitary handrails may lead passengers to ride “hands-free” –putting them at risk of a fall hazard.

Potential Remedy – Ultraviolet LightIn fact, about 80% of all infectious diseases are transmitted through people’s hands – and some disease-causing microorganisms can live on surfaces for hours or even days. These same viruses and bacteria, however, are no match for ultraviolet light technology.

Achieve Up To 99.9% Germ-Free Handrails Achieve germ-free utilizes UV-C LED light technology – the strongest germicidal frequency in the UV-C spectrum – which is known to kill up to 99.9% of disease-causing microorganisms including the MERS and SARS coronaviruses, as well as other bacteria and viruses.

Destroys Germs EffortlesslyInstalled inside the handrail return – safely out of sight and out of reach of passengers – Handrail sterilizer focuses its germ-destroying light on the full width and sides of the handrail as it passes through.

A Universal SolutionHandrail sterilizer is an easy upgrade for new installations and for retrofitting existing escalators, regardless of equipment manufacturer


Cruise Terminals-Safety & Wellness Solutions

Type 5 Elevator buttons

5 Handrail surface wraps

2 Notification

labels

5 Jumbo custom sheets

Total cost

Elevators $49.95 pack $106.25 $9.95 $15.95 $880.65

Touchless Plumbing Approximately $35,000.00

Battery operated faucets

Temperature mixing valves

Automated flush valve



Priority Projects(EP1) East End Cruise Corridor

• Storm drains cleaned so survey work could be completed

• Survey of project area 100% completed; making updates to model

• Held a meeting with the City to coordinate with their 18th street drainage improvement project


Priority Projects(EP3) CT3 Utilities & Roadways

• Continue working towards 90% utility plans

• Received preliminary roadway layout, 60% plans expected in August

• Port will be reaching out to stakeholders to confirm roadway layout meets expectations

Excerpt from Preliminary Roadway Design


Priority ProjectsTraffic Study

• Received Draft Final Report, currently reviewing it

• Planning for public outreach session in late August 2020 after staff review and Board


Priority Projects40th Street Gate Canopy Replacement

• Port Security Grant completion date extended until 12/31/2020 due to COVID-19

• Material supply delay led to work being pushed back to begin in mid August


Priority ProjectsOld Port Industrial and 33rd Street Improvements

• Port and City review of 60% waterline drawings completed

• Engineer working on 90% waterline drawings

• Working with City and contractor on a remobilization plan for the roadway work


Priority Projects(WP3/WP7) Ro-Ro Relocation

• Spent $128k of $600k approved

• On schedule for a January 1,2021 relocation from Pier 10

Excerpt from Preliminary Roadway Design



Pier 41 Drainage

• We have completed hauling fill material from Pier 14 (approx. 7,000 CY hauled)

• Received delivery of and began grading our final top course material, concrete crush



• Directional bore across Gate 40 Entrance Street. Approximately 150 feet

• 1” PVC Waterline and 2” PVC force main

Water and Sewer Utilities for WWO Office Trailers

Parking and Ground Transportation

• Ground Transportation Manual • Present to Stakeholders Open House in September

• Projects In Progress• Loyalty Rewards Program• DV Online Reservations Program• Aging Receivable Collections• Landscaping Maintenance• Lot Striping• Exterior Lot Signage


• Currently going through an RFQ Process for a Parking Consultant who will perform the Engineering Services for the Parking area at CT3

• Current projections for required parking at CT3 greatly exceed the estimate number of surface spots available

• Parking Consultant’s Scope of Work will include evaluate of construction a garage for CT3

Parking Consultant

Most recent concept of surface parking which includes 1,214 spots with proper roadway alignments


• Currently going through an RFQ process for a Railroad Consultant to help implement some of the Masterplan objectives including

• Planning and Design for the Railroad Spur on the West end of the Port in conjunction with filling Pier 40 Slip, RRIF Loan/PIDP Grant (WP13 and WP2)

• Optimize existing rail services to be able to maximize the cargo throughput on the west end of the Port

Railroad Consultant

Concept of West End with new corridor, cargo yard, and rail spurs


• Performing void/pavement repair at Pier 34

Construction and Maintenance

C&M Staff Saw Cutting around a section of damaged pavement C&M Staff removing a section of damaged pavement


• Investigating drainage Issue south of Pier 35-36

Construction and Maintenance

C&M/Eng Staff inspecting a section of drain pipe C&M cleaning a section of drain pipe


• Artifacts found in previous pier expansionproject have finished the conservation process

• Discussing plans for final transaction to display pieces at a Texas museum

Archeology Update

Artifact before Conservation

Artifact after Conservation


June 23 Service Awards

July 9 Mitchell Properties meeting – potential master plan update

July 17 Lunch and Learn- Purchasing Procedures

July 21 Cruise Terminal Wellness and Safety Taskforce Meeting

July 22 Rotary Club of Galveston Employee of the Year Award Ceremony

Events

port director’s report

Documents