Gulf Coast Rail District Board of Directors met July 12

Gulf Coast Rail District Board of Directors met July 12.

Here are the minutes provided by the board:

A meeting of the Gulf Coast Rail District Board of Directors was held at Houston TranStar and via video conference. In attendance at the meeting were Directors Trey Duhon, Michael Dyll, Carol Abel Lewis, Bruce Mann, Richard L. Muller, Jr., Allen Owen, Jim Robinson, and Dennis Winker. Absent were Directors Ronald A. Beeson, Abigail M. Gonzalez, Veronica Chapa Gorczynski, Christopher Lane, Tina Arias Peterman, and Jeff E. Ross. Written notices of the meeting including the date, hour, place and agenda for the meeting were posted with Harris County, with the Secretary of State, and at the Gulf Coast Rail District office located at Houston TranStar in accordance with the Texas Open Meetings Act. The inaudible portions of the recording were removed from these minutes.

Chairperson Lewis: So, hello, everyone who’s virtual. Bruce Mann and myself are in the room, along with Dr. Robinson. And apparently, we need one more person to make quorum, so give us just a second. We are attentive to the fact that it is two o’clock, and we would look forward to starting. So, we did have a quorum confirmed, so we’ll just hold tight while we await the next person.

Chairperson Lewis: Okay, great. Thank you. Alright, everyone. I think we’re ready to start.

Chairperson Lewis: So, it is Tuesday, July 12th, time is 2:04 p.m. So, we’re, I think, in good shape here starting our Gulf Coast Rail District Meeting. I want to call it to order. Make the point that we have the options to participate in person or by video conference due to health and safety concerns related to COVID-19. The meeting is open to the public but restrictions regarding masks, allowable room capacity, and seating arrangements are in place. I would say that those of us who are in the room are at least three feet apart. The public meeting location is TranStar, 6922 Katy Road, Houston, Texas, Briefing Room 216.

I’m Dr. Carol Lewis, presiding officer of Gulf Coast Rail District, and confirm the following board members are physically present: Bruce Mann, Judge Duhon, and Dr. Robinson are here in person. The other members participating by video conference in accordance with the provisions of Section 551.127 of the Texas Government Code applicable to a governmental body that extends into three or more counties include the following. Please respond audibly when I call your name and make sure that you are able to be seen, especially when we are voting.

Chairperson Lewis: So, virtually, Michael Dyll?

Director Dyll: Present, Harris County.

Chairperson Lewis: Alright, great. Abigail Gonzalez, are you there? Director Gonzalez? Okay. Dennis Winkler? Director Winkler?

Director Winkler: Present.

Chairperson Lewis: Okay, great. Thank you. Director Muller?

Director Muller: I’m here.

Chairperson Lewis: Director Owen?

Director Owen: Present.

Chairperson Lewis: Alright. Director Lane? Alright. That concludes our roll call. Other attendees can join the meeting by clicking on a link provided on the agenda that went out on our Friday announcement to join the meeting on their computer, tablet, or cellphone. If the computer has both audio and video, you will be able to speak and be seen during the video conferencing. As I previously mentioned, board members participating will need to be seen and heard throughout the meeting for attendance and record voting. I don’t think that we have anyone calling in by telephone, but the point was if anyone had called in by phone, we would not be able to count them. The public will have an opportunity to address the board with a limit of three minutes per speaker if anyone is here in that regard. So, with that, that concludes our opening comments and making sure that we are applying… responding appropriately to our Texas law. Director Winkler, would you certify the quorum for us?

Director Winkler: I have a count that we have at least seven present, yes.

Chairperson Lewis: Great. Thank you. Confirm the meeting posting in compliance with the Open Meetings Act, which was done on Friday? Thank you, Ms. Patke. Our third item is a resolution presented in honor of Dr. Robinson, who has completed an extensive time of service on the METRO Board of Directors. I know that they are absolutely thrilled with all of his contributions. He is limited as the record allows his term, and so as he transitions off the METRO Board, he will also need to transition off our Gulf Coast Rail District Board. So, I have a resolution here acknowledging all his contributions.

I’m going to read this but before I do, I just want to say that I so appreciate everything that he’s done for us. He comes up with great ideas about funding, about when we need to meet with METRO, setting those meetings up, about making sure we’ve known what METRO has done in terms of reaching out for funding, particularly in the areas of joint development, had us to have meetings with them to look at and got for us the responses that they got when METRO did a joint development call. So, all those things we absolutely, positively appreciate, and just thank you for your time. So, with that, I’m going to read the resolution, and then Ms. Patke, you have a phone camera, you can take a photo of us, correct?

Ms. Lisa Patke: Yes.

Chairperson Lewis: Okay, perfect. In recognition and appreciation of distinguished service, the Gulf Coast Rail District presents this resolution in honor of Mr. Jim Robinson. As I know, he’s a doctor, Dr. Jim Robinson, in the area of transportation as a matter of fact. Whereas Mr. Jim Robinson has served as a Metropolitan Transit Authority of Harris County Board of Directors appointee, ex officio position number two, on the Gulf Coast Rail District Board of Directors since March 11th, 2014, as recognized by Resolution 14-10. Whereas in furtherance of this organization, Mr. Robinson graciously contributed his time and expertise and provided invaluable insight, perspective, and guidance to the Board of Directors to assist in the District in fulfilling its mission. Whereas throughout his Gulf Coast Rail District Board tenure, he served as the co-chair for the Legislative and Funding Committee from 2020 to 2022. Therefore, be it resolved that the Gulf Coast Rail District acknowledges and extends its gratitude to Mr. Jim Robinson for his distinguished service to the Gulf Coast Rail District Board of Directors and expresses its deepest appreciation for the outstanding contributions during his tenure. Signed on the 8th day of July 2022. So, I’d like to present this to you to take with you.

Director Robinson: Well, thank you very much. Did you want to get a picture?

Chairperson Lewis: We want to get a photo, and then we’ll ask for a statement from you. Director Robinson: Okay.

Chairperson Lewis: Get in the middle.

Director Robinson: Alright.

Chairperson Lewis: Well, Katherine moved on the other side.

Ms. Katherine Parker: Okay.

Chairperson Lewis: Or I did.

Ms. Lisa Patke: Alright. One, two, three. One more.

Chairperson Lewis: Alright. Thank you. Thank you so much.

Director Robinson: Well, thank you. It’s good of you. It’s been a real pleasure to work with the Rail District. I was term limited. Under the law, a person can only serve eight years at METRO, and I’ve actually been on the board for nine years and last year as a holdover. I’ve been out here eight years I guess because I came on this board shortly after my first year at METRO. I really think the Gulf Coast Rail District is on the road to do great things. We’re really going to meet the public transit needs of this region. And if we’re really going to deal with traffic, it’s imperative that reliable public transit, fast public transit, exists throughout the region. It’s very gratifying to me to have been a part of what this organization is doing, and I look forward to great things from the Gulf Coast Rail District.

Chairperson Lewis: Awesome. Thank you so much. We really appreciate you and your service and wish you well on whatever you’re asked to do next because someone’s going to pick you up. Somebody’s going to say “Oh, he’s not on there anymore? Let’s scoop him up.” So that’s going to happen to you. Alright. Thank you. Alright, so we’re on to item number five, Discussion and Public Action on the Minutes for May 10th. Director Winkler, please.

Director Winkler: Yes. I’ll ask if anybody has any corrections to let us know. If not, I’ll entertain a motion.

Chairperson Lewis: Oh. Make sure you all too...

Director Winkler: Hearing none, motion.

Chairperson Lewis: Okay, if you make the motion, also please say your name as you do the motion or second. Thank you.

Director Duhon: Is there a motion?

Chairperson Lewis: Director Winkler made it.

Director Duhon: I’ll second, Duhon.

Chairperson Lewis: Okay. Great, so we’ve got a motion and a second. All in favor? Board: Aye.

Chairperson Lewis: Any opposed? Okay. Alright, no opposition. Alright. Thank you, we’ve got our meeting minutes taken care of.

Chairperson Lewis: A report from the treasurer, Director Owen, please.

Director Owen: Madam Chair, I might ask for Chris Palis to give us a report on our financials.

Mr. Chris Palis: Okay, great. Thank you for having me again. Looking at the Bookkeeper’s Report dated July 12th, 2022, go to page two. This is your Cash Flow Report with a starting balance of $108,765. You can see $361 worth of interest earned, total disbursements of $2,816, leaving a balance as of today of $106,309.78. Page three is a listing of the account balances, so you can see your total CDs there. We did have a CD that matured on June the 4th. If you remember back in the May meeting, I was directed by the investment team that they were going to start putting the money into Texas CLASS based on the interest rate, but as you can see here, they actually found one at Lone Star Capital with 1.95%. So, they went ahead and did that. So, you can see total balances there totaling $1.4 million. Page number four is just your actual verse budget, four and five. So, you can see total contributions totaling $1,043 for the month of June, and total expenses of $667. And on page five, you’ll see the pro bono items, the contributions and expenses there. Leaving a total excess revenue of $375 for the month of June. Pages six, seven, eight, and nine haven’t changed since the last meeting, so nothing new to report there on the proceeds of the grants and whatnot. That does it. That concludes the report.

Chairperson Lewis: Okay.

Director Robinson: Madam Chair, just a quick question.

Chairperson Lewis: Yes.

Director Robinson: I don’t know the eligibility to buy this new class of bond that the Treasury sells on Treasury Direct, but I know I just bought one, I think I put $5,000 into one. You’ve got to hold them a year to be able to collect the accrued interest, but the Treasury’s paying just under 10% interest on those bonds. If we’re eligible, since some of these things we’re holding, we’re sitting for a year, it certainly would dramatically increase the rate of return because they’re paying well over 9% interest on this particular class of saving bond.

Mr. Chris Palis: And what was that called so I can...

Director Robinson: I’ve forgotten.

Ms. Katherine Parker: It’s an I Bond?

Director Robinson: It’s a new series of saving bond. If you go to Treasury Direct, you can find it listed, or I’ll look when I get home and I’ll send it over to Katherine.

Chairperson Lewis: Thank you.

Mr. Chris Palis: And then I’ll have Katherine send it to me and then I’ll talk to Ghia who’s the investment officer there at MAC, and then I’ll send a response back to Katherine, let her know if the Gulf Coast Rail funds are even eligible for it. Sometimes they’re just...

Director Robinson: Yes, and I don’t know. I know individuals are eligible.

Mr. Chris Palis: Sure, right, right, yes.

Chairperson Lewis: Okay. Alright. That’s a great suggestion. Thank you so much.

Mr. Chris Palis: Yes, any suggestions, again, I take it back to the investment officer, and they tell me yes or no depending on what the guidelines are on all the funds.

Chairperson Lewis: Yes, exactly.

Director Robinson: Right.

Chairperson Lewis: Perfect, thank you.

Director Muller: Madam Chairman, this is Rich Muller. I had a question if I could. Chairperson Lewis: Please.

Director Muller: So, I noticed in the audit that we only collected contributions from, I think, Harris, Waller, and Houston last fiscal year, and that we didn’t collect as many contributions from the governmental entities as our budget had shown. Is that because people haven’t paid or didn’t pay in the fiscal year? And are those amounts still outstanding, or do we need to make some phone calls to get people to pay what they agreed to pay?

Chairperson Lewis: So, when you say fiscal year, fiscal year ’21… Is that what we’re talking about, fiscal year ‘21?

Director Muller: Yes, ma’am. If you look, I think it’s… and we may be jumping ahead to that financial report, but...

Ms. Katherine Parker: Yes, he’ll be coming on, Mr. Toldan.

Director Muller: It showed that our contributions from other governmental entities was like $204,000, and we budgeted $307,000. And I only noticed because it doesn’t show that Fort Bend County paid any contribution that year. I’m looking at page 61 of the PDF that was sent out for the meeting.

Chairperson Lewis: Okay, right. Okay, so I see where you are now. So, let me ask you… That’s actually discussion item eight.

Director Muller: Okay.

Chairperson Lewis: So, give us a second and we’ll come up and talk about that.

Director Muller: Okay.

Chairperson Lewis: It’s going to open conversation.

Director Muller: I didn’t know if maybe we just got the money late, and if our bookkeeper knows that but however you want to handle it.

Chairperson Lewis: Yes, probably let’s hold a second. I think Katherine’s going to answer it for us in just a minute.

Director Muller: Okay. Thank you.

Chairperson Lewis: Absolutely. Director Owen?

Director Owen: Yes, ma’am. Madam Chairman, I would make a motion that our Treasury Report and Resolution 22-09 Ratifying Payments be approved.

Chairperson Lewis: Okay. Motion.

Director Mann: Second.

Chairperson Lewis: Second, Bruce Mann. All in favor?

Board: Aye.

Chairperson Lewis: Any opposed? Alright, thank you.

Chairperson Lewis: Alright. So, on to item eight, and I’m going to pass this on for Katherine to present to us, and then we’ll get to discuss the question you asked, Director Muller.

Director Muller: Thank you.

Ms. Katherine Parker: Yes. Mr. Toldan is online to discuss our audit... well, our financial report and audit for this year. I think he’s on the phone, so I’ll turn it over to him. But to your question about any of the contributions, if we don’t have them at this point, it’s because they have not sent them in. I can check on Fort Bend, they have, but it could be the year. I’ll make sure from my records whether it’s a part of ‘21, but they have sent their contribution in. They have not missed.

Chairperson Lewis: So, but we send them an invoice for...

Ms. Katherine Parker: Yes.

Chairperson Lewis: Yes, for each year during the month of, like, November, January. Ms. Katherine Parker: Right, to each entity asking for what they have given in years past.

Chairperson Lewis: Right. Yes. To your point for Fort Bend that appoints you, they have paid every year. They have not been void any year.

Director Muller: Okay. Thank you. And Brian, I guess that’s just the timing of when we received the payment, is that why it wouldn’t reflect?

Ms. Katherine Parker: Is he on?

Chairperson Lewis: Is he on?

Ms. Katherine Parker: He was on via phone.

Chairperson Lewis: The answer should be that should be a yes, and we can check on the month to get that to you. But yes, that should be the response.

Mr. Brian Toldan: Hey, this is Brian Toldan. Can everyone hear me now?

Chairperson Lewis: Yes, we can hear you now. Good. Yes, thank you.

Mr. Brian Toldan: I’m sorry. The phone system keeps muting me. I thought it was my wife. That’s a little joke. So, what I will tell you, and Rich to your question, at last year’s audit, when I presented that actually this last October, and I say last year, that’s 2020 audit, Fort Bend County and Waller County were the only two governmental entities, aside from the City of Houston that does the in kind contribution. But in cash contributions, Fort Bend County had $35,000 in 2020, and Waller County had $5,000. This year, the only two entities in fiscal ‘21 that made contributions were Harris County for the $75,000, as you’ve alluded to in note four of the Audit Report, and then Waller County for $5,000. I can remember in years past, having done this audit a number of years, when you have a number of other governmental entities that made contributions, but the last couple years, and all we have booked is physical cash contributions.

Chairperson Lewis: So, when you talk about Fort Bend, and you’re saying their contribution for... You said you have their contribution for 2020. And 2021, did I hear you correctly?

Mr. Brian Toldan: No ma’am, not 2021. Fort Bend County was just 2020.

Chairperson Lewis: Okay.

Mr. Brian Toldan: Now Harris County...

Chairperson Lewis: So, what was the date? Do you have the date on the Fort Bend County? And the reason I’m saying that is I remember Katherine getting emails from them about the contribution. Honestly, it may have come after the date you closed those books. So, it may be just a matter of us checking the date. Do you have there the date of the 2020 contribution?

Mr. Brian Toldan: Dr. Lewis, I don’t. I don’t have the record. Your bookkeeper would have. I would have seen them back at one point when I did the audit for 2020, but I no longer have those records, your bookkeeper does. All I can tell you is happened between January and December of 2020.

Director Muller: Yes. I’m not suggesting we try to figure this out on a call but perhaps if somebody could between this next meeting and next, just make sure that everybody who agreed to make a contribution is up to date with their contributions, and if not, then let us know who’s still in arrears, and we’ll go about getting that collected.

Chairperson Lewis: Okay. And that’s why I wanted to get the date because I’m fairly confident we have gotten another check from Fort Bend. It just didn’t come... That’s why I asked him about the date of the 2020.

Director Muller: Yes. And maybe that’s just something going forward we can track on our bookkeeper’s report as to the pledges that have been made and whether they’ve been collected so that we can keep an eye on that.

Chairperson Lewis: Okay. Most appreciative, thank you.

Ms. Katherine Parker: I can provide that to the board. I have it, I just don’t have it in front of me. But yes, I have the dates. When we receive checks, we make copies of those and put them in the file per each member entity.

Director Muller: Great. Thank you, ma’am.

Chairperson Lewis: Great, thank you.

Director Robinson: Madam Chair.

Chairperson Lewis: Yes.

Director Robinson: While you were discussing that, I found the answer to my question. Chairperson Lewis: Okay.

Director Robinson: It’s a Series I bond. It pays 9.62%, but only individuals can buy them.

Chairperson Lewis: Okay, alright. Well, that saved you a little work when you get back to the office.

Ms. Katherine Parker: …to do with the I Bonds. Okay.

Chairperson Lewis: Alright, thank you. Alright. So, are we completed? We started with questions. Is there anything else that needed to be pointed out in the presentation for item number eight?

Mr. Brian Toldan: Katherine, I think that’s for you.

Ms. Katherine Parker: No, that’s it, unless you have anything else on your side.

Chairperson Lewis: Okay.

Ms. Katherine Parker: And this particular...

Mr. Brian Toldan: I think...

Ms. Katherine Parker: I’m sorry.

Mr. Brian Toldan: Oh, excuse me. This is Brian. I think my comments were going to come under item nine.

Ms. Katherine Parker: Okay.

Chairperson Lewis: Alright. Okay. Alright, so is there anything else on item number eight? Alright, so we have Resolution 22-10. Is there one who would make a motion regarding that resolution?

Director Mann: So moved.

Chairperson Lewis: Bruce Mann in the space here made a motion. Is there a second? Director Duhon: I’ll second, Duhon.

Chairperson Lewis: Duhon, second. All in favor?

Board: Aye.

Chairperson Lewis: Any opposed? Okay, I didn’t hear anybody virtually, I have to tell you all. So, I don’t know if I can just go without hearing any virtual. Folks virtual supporting the motion. Director Muller: I’m yes.

Chairperson Lewis: Yes, thank you.

Director Owen: I’m yes.

Chairperson Lewis: Thank you.

Ms. Katherine Parker: So, we didn’t hear anything, and we didn’t see anything.

Director Owen: It’s silence.

Chairperson Lewis: Alright. So, the motion carries. So, look. Ms. Parker was saying we didn’t hear anything, we didn’t see anything, it’s like mmm. Okay, I don’t think I can say that fast lately in that manner. Alright, great. Thank you.

Chairperson Lewis: Alright, so now we’re on to number nine, Discussion and Possible Action on Resolution 22-11 Accepting the 2021 Financial Report. Again, I’m going to pass to Ms. Parker and Mr. Toldan.

Mr. Brian Toldan: Thank you, Dr. Lewis. It’s good to hear your voice. Board, again, just this past October when we had an opportunity to go through your 2020 audit. Your 2021 year almost mirrors your 2020 year almost as a snapshot. While we’ve been visiting, I was going back to some older audits, to Rich’s point. It used to be quite common that we’d see more of those contributions from other governmental entities. Obviously, Fort Bend and Harris County have always been the higher amounts, but we’ve had Galveston and Montgomery County. Port of Houston Authority used to… at one point was signed up for about $96,000. I will need to understand if these are supposed to be... if it’s something I might should be accruing. If they’re not received, I book them as long-term receivables. They wouldn’t be under governmental rules in the current year, but I can get some more information working with Katherine after the meeting on that.

Chairperson Lewis: Okay.

Ms. Katherine Parker: Okay.

Mr. Brian Toldan: But I think your funds are fine. I’m just going to push you through the report real quick. At the front of the report, I always remind the Board of your independent auditor’s report and the opinion is right up top. So, once again, you’re going to receive what we call a clean opinion. It’s an unmodified opinion. It’s a technical term. The highest opinion a CPA’s going to render, so that’s exactly what you want to hear. And then we do remind you of your responsibilities as the management, being the Board of the District. And then we go extensively into the first two or three pages into the many responsibilities that we have as your auditor and all the test work that ensues. And I’m not sure where the pages are on your link but on the actual Audit Report on page eight is a snapshot of your balance sheet. And of course, cash investments make up most of your assets. And in discussing that, there’s a good page, when you have a chance, back in your report, and it’ll be on my Audit Report number page 24 that details all your investments. But it sounds like you’re getting a good report on that when you come together to meet from your treasurer.

Chairperson Lewis: Right.

Mr. Brian Toldan: Page 10 of my report is kind of a snapshot of your operating activities and looking at your general fund this year. Again, back in note four, it kind of goes through your contributions from other governmental entities, and a large chunk of that is your in kind contributions from the City of Houston. And that’s $209,000 in revenue, $186,000 in expenditures, you’ll see those categories there. There is a supplementary schedule back further in the report on page 23 that’ll break items down a little further in a little more detail for you. Add in $21,000, your fund balance, but you’re still sitting on a very healthy fund balance at year end of a $1,000,351. So again, it’s been kind of a weird couple of years with COVID and everything, so not a lot of activity over these last couple years. And again, this year pretty much mirrors the presentation that I gave you last year.

The footnotes start on page 12 and runs to about page 19. I urge you to get comfortable with that information. You’ll just see your accounting policies, talk about your investments. Again, the contributions from other governmental entities. And then as you page back through the report, one last schedule I’d like to point out to you is on pages—and again, this pages in my report—on pages 25 and 26, you’ll get a five-year history of your general fund. So, you kind of track over five years kind of your activity on revenues and expenditures.

With that, I’d be glad to entertain any further questions. Should you approve this subject to finalization today, we’ll move here as quickly as possible and get this to the final form and sign the opinion and close the book on another year. I appreciate all the help from Katherine. And then I think the Board rep letter I sent to Katherine. She’s going to maybe get Lisa to get DocuSigned. These are the standard reps that all CPAs have to obtain. Same letter that you’ve signed for many years that allows us to sign the opinion. As of today, right now, if you have any further questions, I’d be glad to try to entertain any of those.

Chairperson Lewis: Okay. Are there any questions from anyone either in the room or virtually? Director Mann: Just a correction probably.

Chairperson Lewis: Okay.

Director Mann: On page 28, it says Term of Office Appointed or Statutory, and it has N/A for the Port. It should probably just stay Statutory.

Ms. Katherine Parker: I think we talked about that last year.

Mr. Brian Toldan: Is this Mr. Mann?

Director Mann: Yes.

Chairperson Lewis: Yes, it is. Yes, right.

Mr. Brian Toldan: That comes off a list we’ve been provided, but I’d be glad to update that if you have a specific term.

Director Mann: Well, on the heading, it says Appointed or Statutory, so I would just take out N/A and put in Statutory.

Chairperson Lewis: Right.

Mr. Brian Toldan: Okay. Oh, I got you.

Ms. Katherine Parker: I think we may have discussed that last year.

Director Mann: We did.

Ms. Katherine Parker: I’m sorry. I didn’t update it, yes.

Director Mann: It’s alright.

Ms. Katherine Parker: Yes, okay.

Chairperson Lewis: Right.

Director Mann: And I’m not sure I would show the Port as an account receivable just going into this year. I wouldn’t, and we’ve had that conversation already.

Ms. Katherine Parker: Okay. Yes, we can discuss that.

Chairperson Lewis: We’re going to have to discuss that. So, the conversation that was happening in the room was how to show the Port. And so, we, GCRD, are going to have to have a conversation offline and may go to maybe Legislative and Funding about where we are with that. So, are there any other questions, comments about the report?

Director Mann: And maybe I’ll just say this at this point, which is the Port has contributed, that I can count, $576,000 to GCRD over the years, so it’s not as if we haven’t given anything. There’s a half million dollars sitting in there, at least, so just for the record.

Chairperson Lewis: Alright, okay. Anything else? Okay. If there’s no other discussion, we have Resolution 22-11. What is your pleasure?

Director Mann: I’ll make a motion to approve as amended.

Chairperson Lewis: Okay. And so motion, Mann. Is there a second?

Director Muller: I’ll second.

Chairperson Lewis: Who is “I”?

Director Muller: Sorry, Director Muller.

Chairperson Lewis: Thank you. So, we’ve got a motion and a second. All in favor? Board: Aye.

Chairperson Lewis: Alright. Is there anyone who’s opposed? Alright, great. Thank you. Motion carries. Alright. Thank you, thank you so much. Alright, we’ll talk to you soon.

Ms. Katherine Parker: Alright, be in touch.

Chairperson Lewis: Alright. So, we’ve got Public Comments. Is there anyone who is on the phone who wishes to make a comment? Alright. Hearing, seeing no one, we’ll move on to Update/Status Port of Houston. There was conversation two board meetings ago about Port Houston, and to some degree, Director Muller, it related to some of the things we’ve talked about today, recognizing that the Port was an early financial contributor to GCRD, but of late, quite frankly, has chosen not to be a financial contributor. And there was a lot of conversation about that two meetings... Well, it was the last meeting because we didn’t meet last month.

And so, I talked to Director Mann about that, and he wanted to make some comments, one of which will be what he’s already mentioned. But what we asked him today if he could do an update status about Port Houston for the rest of us, which he has kindly consented to do. And so, with that sort of as a bit of preamble, I’m going to baton hand to Director Mann to make comments and kind of tell us a little bit about what’s going on with the Port, maybe what they’re thinking. And then once he’s talked, we can talk about the relationship between Port Houston and Gulf Coast Rail District.

Director Mann: Yes, I’ll probably do this in two parts. Thank you. First is just about kind of the history of the Port and the Gulf Coast Rail District, and then second is just where is Port Houston today generally. The Rail District, it used to be the Gulf Coast Rail District and...

Ms. Katherine Parker: Freight Rail.

Chairperson Lewis: Freight Rail.

Director Mann: Freight Rail District. And that was because the Port really was the one that got the District created. I think we ran it through the hoops in the legislature, and it was really at the bidding of the Port that the Freight Rail District got created. From that time, and I think until 2017 or 2018, the Port contributed financially to the Rail District from its inception through then. I think around ‘17, ‘18, ‘19, the Port kind of looked at the Rail District, the name had been changed from the Freight Rail District to the Rail District, there was some change in scope and some conversation about the change in the scope of what the Rail District wanted to do. And we kind of looked back over the history of what really the Freight Rail District had actually done, and whether we thought we had gotten value out of the money that we had contributed to the Rail District.

And I think at that time, we didn’t really see—like I said, we had contributed over a half million dollars—and we didn’t see that benefit having come back to the Port, at least through infrastructure investment. So, we declined to really participate in funding it at that point but are still part of the Rail District and really have been engaged in a large part in trying to still get freight investment, at least from the Freight Rail District perspective, grade separations, talking about freight improvements for the region. I don’t know if Tyson’s on the phone or not, but Tyson and I, from UP, have spent a lot of time talking about really trying to mirror what Chicago did with the CREATE Program in Chicago and the grade separations and all they did in Chicago, and how we could do that. That created in part what TxDOT and the railroads, and I think the Port’s on the steering committee of that, if I remember right, the Rail Study for the Houston Beaumont District really was an outgrowth of that conversation.

And most of the people on the board won’t realize this because you’re not part of the conversation but even to this day, we’re still trying to drive some investment in grade separations. H-GAC… I sent an email to H-GAC and some of the railroads and the Rail District and some other folks really to try to get a meeting to talk about the NOFO that was sent out for rail separations, Rail Crossing Elimination Program. So, certainly, the Port’s still interested in grade separations and moving the conversation along. I think we just need to see some value out of the investment that we’ve put into the Rail District, and I think that was the conversation that the chairman had with Dr. Lewis and Katherine. I don’t know, two years ago?

Chairperson Lewis: I would say not exactly.

Director Mann: That was part of it, and part of it was you guys are going into transit. I don’t know that we really thought that was the right scope change for us, right? Because it was a Freight Rail District, and that was kind of what we saw it as.

Ms. Katherine Parker: I think it was also an opportunity to figure out what is the fit. Director Mann: Right.

Ms. Katherine Parker: And we did ask that the Port provide that so that we could have a clearer picture with it...

Director Mann: Yes, and I think...

Ms. Katherine Parker: ...if there is a change.

Director Mann: Yes, and I think that the...

Ms. Katherine Parker: And that’s still open.

Director Mann: Yes. No, I think the report that H-GAC did with the railroads and TxDOT, the Regional Rail Study, right?... the Houston Beaumont Study. I think that’s the blueprint. We want to see movement on that. I think in the end, it’s that, because that’s the rail study for the region. And it’s grade separation, and it’s projects for infrastructure, for the railroads to make freight movement, rail freight movement, more fluid. I think our position would be that’s the blueprint. If projects in those lists are getting funded, I think that’s when we would say, “Okay, we’re getting value out of what the investment is.”

Ms. Katherine Parker: Okay. So, the Port will put their stamp on that.

Director Mann: Right.

Chairperson Lewis: So, things like this are always difficult, I’ll start off by saying that. It’s always difficult. And people, I’m thinking about the game you played when we were little, and one person would say something, and you’d pass the statement around the room in people’s ears. And by the time you got to the end of it, you realized people didn’t hear or think the same way or hear the same thing. So, I think that to some degree, that’s where we probably might be with Port Houston. Because I would just say, from my standpoint, going back all the way from the beginning of what you talked about, when the District was formed and we were asked what was the vision for this regarding Port Houston, and the answer came back to me—grade separations.

And I would say that we’ve been working on grade separations. Now, what I will tell you is that we have not been successful. But if you go back across our minutes, month after month after month after month, we’ve talked about Commerce/Navigation as our first big project, and the freight corridor that we’ve talked about on the West Belt that was our signature element that we wanted to pursue. And the fact that it did not get consummated, again, it was an example of people thinking differently.

So, you all have heard me say for years the issue with Commerce/Navigation was that Gulf Coast Rail District thought that Union Pacific was going to contribute $4 million in cash. When it became clear that Union Pacific meant they were going to do $4 million in land donation, we have not been able to make up that $4 million gap. Now, I would say, this is just me, nobody knows what if, but I would say had the Port been contributing its money all those years, maybe we would have had a little cushion that we could have used to leverage additional funds, right?

So, it wasn’t for lack of grade separations being an item that we were pursuing. We were absolutely pursuing it. And I guess I feel like if we’d been able to get the first one, then it would have been sort of like a domino, we would have been more successful getting others. So, there’s nothing any of us can do about how Port Houston feels about what it has not gotten for its initial contributions. That can’t be changed. That’s how the agency feels. I would say that when we met with... And I think that what we talked about the other day, Katherine and I, as meeting again with the leadership of Port Houston to sort of talk again about where we are and potential expectations and the like, and so we can see what will happen.

So, from the conversation we had, like you said, back in the day, I do not remember them saying, “We’re so disappointed with what we’ve gotten out of GCRD. We no longer are going to contribute cash.” I mean, no one has ever said that. It’s just that we send the invoices and there’s no response, and that’s what has happened. And I would say that the way it should have happened—this is just me—is that someone would have come to us and said, “We’re not feeling as if we’re satisfied. Let’s have a conversation,” and “We’re not going to contribute.” But to just not give any money and not say anything, and I realize I’m on the record and I’m saying it, that to me that’s not the way to do business.

Director Mann: Right.

Chairperson Lewis: I’m just going to say it. That’s not the way to handle things.

Director Mann: Yes. I walked away from that meeting thinking that that was what we said, but...

Chairperson Lewis: Let’s whisper in the ears, right? Because the thing that happened—let me tell you this—the thing that happened was that we were asked to provide more information, which we did, and we never got a response on the additional information that we passed along.

Director Mann: Yes. I mean, if I look at this, we’re sitting on, what, $1.4 million, $1.3 million? We haven’t constructed anything, right?

Chairperson Lewis: There is nothing one can construct with $1.3 million.

Director Mann: No, I understand that. No, I completely get that, but 40% of the money came from the Port. Forty percent of the money that’s sitting in the bank came from the Port.

Chairperson Lewis: And so, who’s to say that a portion of that money might not be used for something if we had a little more. So, 60% came from us and is still sitting there.

Director Mann: Yes.

Chairperson Lewis: So, if the people who provided the 60% were saying, “We haven’t gotten anything for our money,” and quit giving money, then we’d be in a different situation, right?

Director Mann: Right. But I think that the Port’s been the biggest contributor through 2017 that there was for the Rail District.

Chairperson Lewis: So, you all have given 40% of the money that’s sitting there, and you’ve been the biggest contributor?

Director Mann: Yes. Because if you look at it, it’s $96,000...

Chairperson Lewis: So, let me say this.

Director Mann: Because we haven’t contributed in the last couple of years, right? Chairperson Lewis: This is about to be...

Ms. Katherine Parker: I don’t think we’ll be able to debate this at this point, yes.

Chairperson Lewis: Alright, let’s try to get to something that would be productive right now. Let’s try to get to something that will be productive. So, I will say that what you said has been presented, and the Board has had an opportunity to kind of hear what’s transpired. And I’m going to say again, we probably need to talk with Legislative and Funding about several things. This being one, meaning that Port Houston is on the Board and has made a conscious decision to not contribute. So, the thing I think about is, okay, so what would they need to see to contribute? And I don’t want an answer to that question, but I mean, it just comes to mind for me. It’s like, okay, so when would Port Houston decide that it wanted to contribute? Let me ask if anybody in the room or virtually has any comments or questions.

Director Muller: This is Rich Muller. I guess I’ll go first because this is kind of the first, I’m hearing about all this. But at the end of the day, particularly on the freight rail side, the Port of Houston is a key driver of what we do there. I’m a little bit concerned to hear that there’s maybe some bad relationships or some issues that have developed there. And my only comment is we need to figure out how to get that relationship mended. To the extent that the Board needs to be involved in doing that, then let’s figure that out. I think the point about we having achieved anything is a good one. We talked about this about a year ago. Let’s pick a project and go figure out how to do it, and perhaps we need to refocus our efforts on that. But yes, this is the first I’m hearing of it, and I’m just concerned that it seems like we’ve got a strained relationship with one of our important partners.

Chairperson Lewis: So, there are board members who feel as if they have good relationships with Port Houston leadership, and so we’ve talked about actually engaging those individuals. So, anybody else who feels like they have a good relationship with the chair of the Port or executive director, please let us know. And I think Ms. Parker and I would be more than delighted to see a session scheduled. We probably need to talk first ourselves to see what it is that we can say we can do, so that we walk into the room with essentially our ducks in a row right now.

Director Mann: Yes, I’ll just make two final comments and then maybe I’ll talk about the other thing. But I know you and I have had conversations along the way about we need to get a win, in the end. Success breeds success. The $576,000 has to mean something. So, I think if the Port sees that, “Hey, they’re doing something,” that means something. But in the absence, I mean, we’ve been doing... When was the Rail District created?

Chairperson Lewis: 2007.

Director Mann: So, 15 years later... And I’m not picking on anybody. I’m just saying we’ve got a billion dollars that we have to invest in a ship channel. I need to put my money where it’s going to get a return if I’m the Port. And that’s just selfishly...

Ms. Katherine Parker: I think you have to take into consideration, and I was not here in 2007, with no funding source...

Chairperson Lewis: Exactly.

Director Mann: Right.

Ms. Katherine Parker: ...you are hard bent to try to find movement.

Director Mann: Right, but the Port can’t be the cost share.

Ms. Katherine Parker: Just being at the table to be a part of those discussions as you represent the Port Houston and all its entirety, I think that’s it’s good business to be at the table and to be a contributing partner. But as you said, and we will do that, we will meet, we’ll discuss what it is that we can contribute and what you think that we should have contributed. And I think that’s a separate conversation because I hate for us to continue. Because I don’t know that we’re going to come to a happy medium right now. But we understand that it’s a conversation that has to happen as we move forward because the Board and the District is moving forward.

Director Mann: And maybe it’s just there probably should be a conversation about, A, if, and B, how much.

Ms. Katherine Parker: Right.

Director Mann: Because the “how much” is also... I mean, it’s not a trivial amount of money. Ms. Katherine Parker: Well, that’s a conversation, it’ll be for each of our...

Director Mann: Especially compared to the rest.

Ms. Katherine Parker: ...member entities. Legislative and Funding will be reevaluating. Chairperson Lewis: Right.

Ms. Katherine Parker: Really, that’s a part, that’s on the agenda as well.

Director Mann: Yes.

Chairperson Lewis: Right.

Ms. Katherine Parker: Not just for the Port, but for all of the member entities.

Chairperson Lewis: Right. And I appreciate that point, Ms. Parker, that one of the things we’ve talked about Legislative and Funding taking on is reevaluating everyone’s contributions to Gulf Coast Rail District. And I think I may have mentioned before because I think we talked about this a few months ago. I went through just hand-doing myself a couple of ways to try to make contributions equitable, and I tried using population. To be honest, that didn’t work, and the reason it didn’t is that Harris County is so large. That you can’t do exactly contributions by population, that doesn’t work. And then I said, well, maybe we do ranges, if you’ve got this many to that many people. So, I don’t want to think about it anymore. I want to take it to Legislative and Funding, and I think it is something to talk about.

The other thing we want Legislative and Funding to talk about, and this is not an agenda item, but I’m using it as just a piggyback because a comment was made that Ms. Parker responded to. That we are an entity with zero... The only money we have is contributions. We have no funding base. And so, I say to people our organization, honestly, leverages other people’s money, that’s what we’ve been doing. And so, the reason we have not been successful in having the single project was our failure to fully leverage other people’s money. And that $4 million gap on a $50 million project, I still can’t believe that we weren’t able to...

When I first became Chair, I guess in 2019, and I found out it was $4 million, I thought about it. I said, “Well, shoot. I’m just going to be like at church and go around and pass the hat to get $4 million. What’s $4 million?” Well, I found out it wasn’t quite as easy as I thought it was going to be. But we do want Legislative and Funding to really start volleying where can we actually get enough money to do projects. Director Mann mentioned we’ve got $1.4 million. All you can do with $1.4 million is a study, and then a study at the end of which you have no money to actually do a project.

So, we’ve got some things to work on and appreciate everyone’s contributions in thinking about what can we do to actually get a source of funding. And I’ll tell you one of the things, it’s just a little bit, one of the things that I was optimistic about and still am, was the Transportation Reinvestment Zones that got passed last November that will allow counties to set up zones that gives money to transportation. I understand that even though it was successfully passed for the state of Texas, there’s been a lawsuit been filed against it, and so the counties haven’t been able to go forth and do anything with it yet. But hopefully, that will get resolved, and we’ll work with our counties to try to identify a singular source that could begin to fund projects in the District. But again, invite everyone to think about that. Alright. Is there anything else on this item?

Ms. Katherine Parker: It’s the presentation.

Director Mann: So, I just had kind of a quick overall presentation on the Port and kind of the status of the Port today, separate from this issue.

So, I guess if we just want to go to the next slide. So, this is just a little interesting piece of trivia. There’s a railroad on the city seal. Interestingly enough, that city seal was created in 1840. The population of Harris County in 1840 was less than 2,000 people. There wasn’t even a locomotive in the city of Houston. And then just when you think about history and timelines and textbooks, 1869 was the golden spike. The city seal was in 1840. So, it was 29 years ahead of the Transcontinental Railroad. So, when you think about that city seal, you actually think about really how forward-looking it was at the time.

Then if you kind of go to the next slide. In 1899, that was the ship channel. It was a little creek. I don’t know, I guess you guys say creek down here, creek. I grew up in Iowa, it’s creek. And you’re moving cotton down it, right? And then if you go to the next slide, by 1914, the Houston ship channel opened. It was a whopping 25 feet deep and 150 feet wide. And in 1924, this isn’t on a slide, 1924 was a good year from a historical perspective for two reasons. One, the first light signal came to the city of Houston, so we actually had traffic in the city in 1924, the first light. But more importantly, 17 railroads turned into 1, the PTRA, the Port Terminal Railroad Association, was formed. And that really was the lynchpin into what happened until now. By putting all those railroads together, you created competitive access into and out of the Port region for rail, and it laid the foundation for everything that came after. You can see what the channel, the Port is today. I mean, if we didn’t have a channel, Houston wouldn’t be here. The two are irretrievably linked.

Today—we can go to the next slide—we’re the number one waterborne tonnage port, we’re the number one export state by far, number one export region. And we go to the next slide. We’re number one in steel in the US. Almost 70% of all the containers on the Gulf Coast come through the Port. We have more deep draft ship calls than LA, Long Beach, New York, and New Jersey combined. On top of that, we have about 200,000 barges. We are the busiest waterway in the entire country. We are the largest petrochemical complex in the US and probably the world by now, with all the investment that’s happened in our region. About 74% of traffic that moves up and down the ship channels is actually bulk liquids.

And just to talk a little bit on the next slide about economic impact. These numbers are cool, but if Texas was a country, Texas would be the ninth largest economy in the world. The Port of Houston and the 200 customers that are up and down the ship channel represent 20% of the Texas economy, which is the ninth largest economy in the world. So, it is the economic engine of the state of Texas, by far. The comptroller for the state has called it that. The job growth and the revenue that it creates is mind-boggling, really. You can see all of the growth that’s happening, no matter what you look at. Whether it’s polypropylene, polyethylene, crude oil, propane, containers, they’re all growing.

I think most people here know the Port Authority, but on the next slide, it just talks a little about we manage eight public terminals, two container terminals are part of the eight, and we are the non-federal sponsor for the ship channel. And then just a couple of pictures here just to look at what we move. Break bulk, general cargo, we’re the largest break bulk and general cargo port in the US. On the next slide, you see containers. And then on the next slide, where all these containers are coming from and going to. Most of them... If you looked at this slide eight years ago, that whole East Asia would be zero, and today it’s about 40%, 39% of what we do. So, the expansion of the Panama Canal has been huge. The growth in traffic to and from East Asia has been huge, it’s double-digit growth. When you look at the rest of them, they’re kind of GDP growth, but the growth through East Asia’s been phenomenal.

The next couple of slides just talk about what it is that we move in Port. Not surprisingly, it’s Walmart and furniture and alcohol and Red Bull. Red Bull is one of the, what? One, two, three, four, five, six, seven eight. Is the 10th largest import into Houston, so people like their energy drinks here. Exports, it’s chemicals. Not surprisingly, resins. Exxon by far at the top. And then if you look at the next one, it gets into containers, really what’s coming in and out of the containers—construction materials. On the import side—machinery, appliances, food and drink, retail. And then export, the biggest by far is resins and plastics. Then you get into chemicals and minerals, and we’re still exporting food and drink as well.

The next slide just talks a little bit about we are a responsible partner for our region. We’re the first port authority to operate with 100% as setback renewable energy. We have a lot of initiatives around the environment, oyster beds, all kinds of stuff. We just had the first prototype electric truck go through the Port last month. Then just to talk a little bit about where we are currently. Last month in June, total tonnage through our terminals was up 24% year over year. General cargo was up. We handled nearly 3.3 million tons, up 120% on year steel, import steel this year. Container activity, which is the big driver obviously for the Port Authority, is up 20% year over year. Last year was a record year. We’re stacking containers everywhere we can find because we’re just moving so much right now. So much to the point we actually extended gate hours to include Saturday last month.

So, to keep up with that big growth has been challenges. The next slide shows we’re investing about $200 million a year on docks, wharfs, container yards, cranes, land development. We have a 2040 plan that we’re following. The biggest—then on the next slide—is the most extensive expansion of the ship channel that’s ever been done to date, it’s the largest project that we’ve ever done. Project 11, which is deepening and widening the channel, it’s a billion-dollar project. We’re trying to widen as much of the federal channel as we can from 530 feet to 700 feet and make it deeper.

In October of 2021, the Port Commission awarded the first major dredge contract, and if we go to not the next slide but even the one after that. Last month, we had a special Port Commission meeting where we awarded 430 more million dollars for dredging. So, we’re over a half a billion dollars in the widening and deepening project. The project’s now 82% funded. We’re still trying to figure out how to come up with the rest of it and turn over the maintenance of it. Over half of what this 430 million goes to is actually environmental, and 32% of the contracts are going to SMWPE companies. So, not only are we doing it from a responsible environmental perspective but also from a social perspective.

And the next slide really shows when you link the population of our region and the depth of the channel, you can see how they’re tied together. The wide blue line going down is the depth and the top red line is the population. So, you can see as the population grows, the channel goes deeper. And the line in the middle is the overall cargo. And then the bottom line is containers, and you can see how it’s just taking off, which is a big reason why Project 11 happened. The next slide just shows a little bit of an overview of what Project 11 is, the different parts of it.

Parts 1A, B, and C are critical. They’re the ones that are being done first, which is really facilitating wider ships, container ships, two-way traffic on the ship channel because we need to move the larger ships safely. In the last legislative session, the legislature weighed in to limiting the length of ships. So, Project 11 is really getting accelerated around that and really the overall growth of the Port in general.

And then finally, a few years ago, someone called Port Houston really the irreplaceable port. Just the energy and the security, the infrastructure, the importance to the national economy. We’re the top export port. When you look back at Harvey, the first question that... One of the first people that Judge Emmett called, the county judge called, was the Port to say, “When can you get back up?” just because it’s that critical to our region, it’s that critical to our country. For those of you that remember, we started running out of aviation fuel because the aviation fuel gets refined here. So, getting the Port back open is critical, not just for aviation fuel, but all of the base chemicals that get produced up and down the channel—chlorine, everything now. Every part of our life is tied to that ship channel from a national perspective.

So, it really is, the widening and deepening of the port is the most critical infrastructure project in the entire country. It’s the most important port in the entire country. It’s 20% of the Texas economy. And to kind of go back to the beginning I suppose that’s one of the reasons we really have to look and see where’s all of our money spent, are we getting the best return on it. Because we’re paying a lion’s share of the wider, deeper channel. So, it’s a billion dollars, and we’ve cut back spending in a lot of areas and with a lot of organizations in order to facilitate Project 11 getting done. So, the Port’s critical to our region, this project’s critical to our region, and it’s important to the national economy, and the country overall. So, that’s just a quick overview of the Port.

Chairperson Lewis: Okay. Thank you, Director Mann. I think there’s no question in any of our minds about the importance of Port Houston, and I know most of us are probably quite proud of the Port when we go places and have an opportunity to talk about what happens in Houston. Any questions or comments for Director Mann’s update? Alright. Hearing none, our next item was Rail Safety Updates by Jack Hanagriff representing the City of Houston’s...

Ms. Katherine Parker: Mayor’s Office of Innovation.

Chairperson Lewis: Mayor’s Office of Innovation. But what we’re going to ask you, Mr. Hanagriff, is if we could have you come back next month because I do want to take some time with your conversation. I think it’s really important to us and what we do and our understanding of the delays that you’ve encountered, how you’re counting things in the East End, which is an area that’s made the news often and I think we’re very sensitive too. It’s one of the reasons we had our whole West End Study going on, and planned work for that matter. So, would you be willing and able to come back to our next meeting, which is the second Tuesday in August?

Mr. Jack Hanagriff: Yes, absolutely, no problem.

Chairperson Lewis: Perfect. Thank you so much.

Ms. Katherine Parker: Thank you, Jack.

Chairperson Lewis: So, then the next item we have is a report from Ms. Parker.

Ms. Katherine Parker: And I’m short and sweet. I want to take time to say thank you to Director Robinson for your service to the Board and your willingness to answer my emails and calls whenever I needed something. Thank you so much. It’s so appreciated.

Director Robinson: Oh, thank you.

Ms. Katherine Parker: This past month, we’ve been meeting with the various member entities. To date, we’ve met with the Harris County Mayors and Council Association, President Schwartz, and board member Mayor Jon Keeney. We met with Harris County Precinct 3 Commissioner Ramsey, Fort Bend County Judge George, Harris County Commissioner Precinct 2 Adrian Garcia. We had our intro meeting with our Director Gorczynski, even though she’s a part of the Board, we didn’t have an opportunity to kind of sit down and go over with her as we’ve done with each new director, so we had that meeting. Our upcoming meetings we’ll meet with Commissioner Morales on tomorrow. We have a tentative meeting set with Cagle’s office and Hidalgo’s office, so we’re moving forward with our meetings to discuss the concurrent ordinance, and just an update for each of our member’s entities. And that’s all I have on that.

Chairperson Lewis: Alright, great. Thank you, Ms. Parker.

Director Robinson: What about Commissioner Ellis? Have you met with him?

Ms. Katherine Parker: We have not. Not yet. And I’m sorry, Commissioner Prestage as well, he’s on our list from Fort Bend. But no, we have not met with Ellis.

Chairperson Lewis: Yes. We do want to make the rounds with each of the commissioners. Anything else for Ms. Parker? Okay. Just announcements and such from me. I will tell you; I would mention Commerce/Navigation that we’ve been working on for a very long time. And the issue, we finally did find someone who would meet the $4 million gap, and it was Harris County Toll Road Authority who was actually ready to do that. What ended up being the next sort of blip is that because it had taken the project so long, the City of Houston had moved it out of its CIP. And so, the next step is that in the infrastructure bill, the recent infrastructure bill, there’s a whole category that’s paying for grade separations. So, the City of Houston is taking that project as its item into a request. There was a Notice of Funding Opportunity for grade separations, and that is the one that they’re taking in for that funding opportunity. So, hopefully, we’ll be able to get it financed through that infrastructure bill, and then we’ve got the match. The match is still a portion of what we have locally, and then the federal money that we have already in the H-GAC TIP is there. So, if the City is successful in getting it in the package that they’re submitting to the federal government, then that would be how we would be able to finally see some success on that. So, I hope that there’s some news about it. It usually takes, honestly and truly, about a year before you hear back when you respond to one of their Notices of Funding Opportunities. So, we will keep you posted on that. But it’s still a living and breathing project. So, whenever we cut that ribbon, it will really be a glorious day, and we’re going to cut it one day.

Director Mann: I think the administration, all the NOFOs that they’ve put out, I think they’re trying to get decisions on all of them before November.

Chairperson Lewis: Yes, I saw that too. November 21st.

Director Mann: Yes.

Chairperson Lewis: But yes, they decide November 21st, but then by the time you really get the...

Director Mann: Yes, get through the agreement and everything.

Chairperson Lewis: Yes, exactly.

Director Mann: We’ll know. We should know...

Chairperson Lewis: By November whether...

Director Mann: ...before the end of the year whether we did or didn’t.

Chairperson Lewis: ...whether they’ve done it. That’s hopeful.

Director Mann: Yes.

Chairperson Lewis: Yes. I think they actually said November 21st, so appreciate that particular point. So, I think that was all that I wanted to make note of today. I’ll look forward to Mr. Hanagriff’s presentation in August. And thank you, everyone. Are there any parting comments for the good of the order before we adjourn? Okay. Thanks, everyone. See you all next month. (Adjourned at 3:16 p.m.).

http://www.gcrd.net/docs/GCRDMinutes.07-12-2022.pdf