January 27, 2003

Board of Trustees of the Galveston Wharves 
and Galveston Port Facilities Committee
by Jim Guidry

Tom and Jim Flanagan of J. J. Flanagan Shipping of Beaumont and Galveston Waterfront Ventures, which  provides stevedores at the Port of Galveston and a parking lot that serves the cruise ships, visited Monday's meeting of the Board of Trustees of the Galveston Wharves to express their concern for new tariffs that may be assessed on buses that deliver passengers from the lots to the cruise terminal.

"We've been in Galveston for roughly 25 years and have had during that time a very good relationship with the Port of Galveston," Tom Flanagan said, referring to recent news articles about their operation.  "We seek no conflicts at all; we want to continue on with the good relationship."

Flanagan asked that a meeting with wharves board members or representatives be scheduled to try to resolve the tariff issues, "To see if there is a fair way of approaching this thing that wouldn't be punitive on us and would still allow the port to accomplish its goals."

Galveston Mayor Roger Quiroga, who represents the city council on the wharves board, thanked the Flanagans for appearing before the board, but chastised them for having appealed to Senator Kyle Janek before approaching port officials about their concerns.

"This is a big blowup because we have a state senator that has threatened the City of Galveston," Quiroga said.  "We need senators working for the best interests of Galveston."

Port Director Steve Cernak reported to the wharves board that December revenue was on budget.

"December 2002 total operating income was $1,177,880 versus $1,881,426 budgeted, a variance of -0.003," Cernak said.  "Total operating expenses were $674,628 or 1.67 percent under budgeted expenditures."

Cernak said the port showed a net profit of $194,151 in December, which is 4.27 over budget.

The wharves board approved several items that had been previously approved by the Galveston Port Facilities Corporation, including agreements with Royal Caribbean Cruises Ltd.

All other action items on the wharves board agenda were approved with unanimous votes.

The GPFC deferred one item on its agenda on Monday; acceptance of applications for a depository contract.  Because of a discrepancy in the process, the contract will be re-advertised for bids.  Benny Holland abstained on that vote to avoid the appearance of a conflict.

The GPFC also voted to name Wayne Byrd as its investment officer.

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