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PORT COMMISSION MEETINGJanuary 25, 2022 – CONFIDENTIAL BRIEFING BOOK
Tuesday, January 25, 2022PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITY9:15 a.m.111 East Loop NorthHouston, TX 77029And Via WebExA. CALL TO ORDERB. OPENING REMARKS BY CHAIRMAN AND COMMISSIONERS1. Governance, legislative, policy, operational, and community matters2. Resolution of the Port Commission in honor of the Hundred-Year Anniversary of the HoustonPilotsC. APPROVAL OF MINUTES1. Port Commission Public Meeting - November 18, 2021 Budget Meeting2. Port Commission Public Meeting - December 7, 2021D. STAFF REPORTS1. Summary of selected financial and operational mattersE. APPEARANCES1. Public CommentF. EXECUTIVEGeneral1. Enter into an Industrial District Agreement with the City of Morgan’s Point and approve apayment to the city under that agreement in the net amount not to exceed 1,500,000.2. Acknowledgment of a gift to the Port Authority under Special District Local Laws Code Section5007.228: 1,000 from Magellan Terminals Holdings, L.P. for equipment, training, or teambuilding.G. BUSINESS EQUITY1. No items.1
H. COMMERCIALLeases1. Approve a lease for a three-year term with AllTrans Port Services, LLC for approximately 3.04acres in Block 23, Industrial Park East, effective no earlier than February 1, 2022, at an annualbase rent of approximately 115,824, subject to annual base rent escalation of the greater of 3%or the increase in the Consumer Price Index.2. Approve amendments of two leases with Kinder Morgan Petcoke, L.P. for approximately 90.3acres and 23.18 acres at the Bulk Materials Handling Plant to extend the terms for five years toexpire June 30, 2027, effective no earlier than July 1, 2022, at combined annual base rents ofapproximately 4,237,054.32, subject to annual base rent escalations equal to the increase in theConsumer Price Index for the 90.3-acre lease and 3% for the 23.18-acre lease.3. Approve a second amendment to the lease with TPC Group LLC for approximately 6 acres atBlock 3, Sims Bayou, to extend the term for one year, effective no earlier than April 1, 2022, at anannual base rent of approximately 256,042.I. FINANCEAwards, Amendments & Change Orders1. Approve the purchase of insurance from various carriers effective March 1, 2022, for the PortAuthority’s primary and excess property and casualty insurance coverage needs, in a total amountnot to exceed 5,517,350.2. Authorize 1,000,000 to fund the Port Authority's self-insurance loss fund account for workers'compensation and liability claims for insurance year 2022-2023 and authorize its third-party claimsadministrator to pay claims in accordance with the Amended Insurance Program andIndemnification Policy dated February 2018.General3. Approve the audited financial statements for the Port of Houston Authority Restated RetirementPlan for the fiscal year ended July 31, 2021.4. Approve the change of control of Stacey Braun Associates, Inc. under its investmentmanagement agreement for large capitalization growth assets of the Port of Houston AuthorityRestated Retirement Plan.J. INFRASTRUCTUREAwards, Amendments & Change Orders1. Approve staff’s ranking of vendors and award a professional services contract in an amount notto exceed 170,110 to design the Port Coordination Center renovations at Turning Basin Terminalto the top-ranked proposer: staff ranking – first, English & Associates Architects, Inc., second,Martinez Architects; and third, Sigma Engineers.2. Approve a change order with Satterfield & Pontikes Construction, Inc. to perform additionalwork associated with the construction of Container Yard 2 South at Bayport Container Terminal inan amount not to exceed 52,453.2
Project 113. Enter into a pipeline alteration agreement for possible pipeline relocation construction with theGulf Coast Authority in Segment 3 of the Houston Ship Channel Expansion Channel Improvement.Permits/Licenses/Pipeline Easements4. Approve the renewal of the following expiring Port Authority licenses for new ten-year terms:BWC Terminals Holdings, LLC, Concha Chemical Pipeline LLC, DCP Sand Hills Pipeline, LLC, EnergyTransfer Mont Belvieu NGLs LP, Kinder Morgan Crude & Condensate LLC, Kinder Morgan TejasPipeline LLC, Kinder Morgan Texas Pipeline LLC, KM Liquids Terminals LLC, Linde, Inc., ShellChemical LP, Shell Pipeline Company LP, South Tex 66 Pipeline Company, LTD, and ValeroRefining-Texas, LP.5. Issue a pipeline license to Easton Energy Pipelines, LLC for one 8-inch isobutane pipelinecrossing the Port Authority's Southside Mainline railroad right-of-way, near West Belmont Street.6. Approve the transfer of the license for a six-inch sulfuric acid pipeline from Sekisui SpecialtyChemicals America, LLC to PCI QOZB, LLC under and across the Port Terminal Railroad AssociationSouthside Mainline railroad right-of-way.K. OPERATIONSAwards, Amendments & Change Orders1. Award a contract to Hillary Machinery, Inc. for the purchase of milling equipment to fabricateparts and specialty tools for Barbours Cut Terminal, Bayport Container Terminal, and Turning BasinTerminal in an amount not to exceed 315,296.2. Award a three-year contract to Briggs Equipment, the sole source provider, for the purchase ofcaptive spare and replacement parts for Hyster container handling equipment at Barbours CutTerminal in an amount not to exceed 250,000.3. Award a contract to Konecranes, Inc., the sole source provider, for the purchase andinstallation of gantry disable indicator lights on rubber-tired gantry cranes at Barbours CutTerminal and Bayport Container Terminal in an amount not to exceed 156,000.4. Award a two-year contract to MAT Malmedie Antriebstechnik GmbH, the sole source provider,for the purchase of spare and replacement drum couplings for wharf cranes at Barbours CutTerminal and Bayport Container Terminal in an amount not to exceed 250,000.5. Authorize additional purchase order funding for continuing pandemic response services withAmbassador Services, LLC for 100,000.6. Rescind the award of a contract for the purchase of four replacement operator cabs for wharfcranes at Barbours Cut Terminal awarded to Brieda Cabins S.r.l. A Socio Unico.7. Amend the professional services agreement with APTIM Port Services International, LLC toperform additional inspection services for construction of three dockside electric container cranesfor Wharf No. 5 at Bayport Container Terminal in an amount not to exceed 121,933.3
General8. Approve a Marine Terminal Service Agreement with HMM Co., Ltd. (America).9. Enter a Facility Use Agreement with Buffalo Marine Service, Inc. for layberth of barges atcertain Turning Basin Terminal wharves at a monthly dockage rate of 12,075 for a term of twoyears with one two-year option at a monthly dockage rate of 12,678.75.10. Make revisions (i) to Tariff 14, Subrule 093 and Tariff 15, Subrule 095, to provide that no morethan two vessels in the same liner service may have their cargo stored on terminal at any giventime, unless permitted by terminal management, (ii) to Tariff 14 Subrule 073 and Tariff 15 Subrule075, regarding the handling of hazardous cargo, and (iii) to Tariff 14 and 15, to provide a newsubrule for rail storage.11. Approve an amendment to the lease with CMC Americas LLC for 22.52 acres at BayportContainer Terminal Complex south of Port Road, providing for reimbursement of the tenant’s costsfor mitigating certain soil conditions of approximately 2.5 acres, in an amount not to exceed 362,095.95.12. Amend the contract awarded to Konecranes, Inc. for purchase and installation of KonecranesDynAC/DynaHoist Vector II drives and control systems retrofit for four rubber-tired gantry (RTG)cranes at Bayport Container Terminal for a revised contract amount not to exceed 2,233,336.L. PEOPLE1. No items.M. SECURITY AND EMERGENCY OPERATIONSAwards, Amendments & Change Orders1. Approve a purchase order to Metro Fire Apparatus Specialists, Inc. for the purchase of ten selfcontained breathing apparatuses, ten cylinders, and ten masks, using the Houston-Galveston AreaCouncil’s cooperative purchasing program, in an amount not to exceed 83,000.2. Enter into a two-year interlocal agreement with San Jacinto College to provide fireboatsimulation training for the Fire Department in an amount not to exceed 19,500.N. TECHNOLOGYAwards, Amendments & Change Orders1. Issue a purchase order to CDW Government LLC for purchase of miscellaneous computer partsand accessories, using OMNIA Partners, a cooperative purchase program, in an amount not toexceed 100,000.2. Issue a purchase order to Smart-Tecs, the sole source provider, for the purchase of spare partsfor the Gate Operating System environment in an amount not to exceed 75,000.3. Amend and extend, for an additional five years, the contract with Comcast CableCommunications Management, LLC for additional circuits supporting the disaster recovery datacenter, in an amount not to exceed 1,300,000.4
O. RECESS OPEN MEETING AND CONVENE EXECUTIVE SESSION1. Consultation with Attorneys (Section 551.071, Texas Open Meetings Act), includingconsultations regarding (a) Kozlowski, et al v. Buck et al, and (b) proposed amendments to theagreement for legal services with Andrews Myers, P.2. Real Estate (Section 551.072, Texas Open Meetings Act)3. Economic Development Negotiations or Incentives (Section 551.087, Texas Open Meetings Act)4. Employment and Evaluation of Public Officers and Employees (Section 551.074, Texas OpenMeetings Act) including deliberation regarding the employment agreement with the ExecutiveDirector of the Port Authority5. Security-Related Matters (Sections 418.175-418.183 of the Texas Government Code, andSection 551.076, Texas Open Meetings Act)6. Adjourn Executive SessionP. RECONVENE OPEN MEETING1. Announce any items from Executive Session requiring Port Commission actionQ. CLOSING REMARKS BY CHAIRMAN AND COMMISSIONERS1. Governance, legislative, policy, operational, and community mattersR. ADJOURN MEETING1. Next Meeting Requested – Thursday, February 24, 20222. Adjourn Port Commission Meeting5
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F. EXECUTIVESubject1. Enter into an Industrial District Agreement with the City of Morgan’sPoint and approve a payment to the city under that agreement in the netamount not to exceed 1,500,000.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, authorize the Port Authorityto enter into an Industrial District Agreement with the City of Morgan’s Point andapprove a payment to the city under that agreement in the net amount not toexceed 1,500,000, and further authorize the Executive Director to do any and allthings in his opinion reasonable or necessary to give effect to the f Contact:Erik ErikssonBackground:Port Authority representatives have undertaken discussions with the Mayor and City Manager of the City ofMorgan’s Point to consider whether the city would:(i) disannex Barbours Cut Terminal property;(ii) enter into an Industrial District Agreement for the disannexed property;(iii) sell miscellaneous properties south of the terminal to the city;The agreement would provide, among other things, that during its term, the disannexed property wouldretain its newly-enacted extraterritorial status, be immune from annexation by the city, and remain exemptfrom various city powers. The agreement would also acknowledge that the city would have no obligation toprovide services to the disannexed property, except water supply and waste water treatment. Finally, theagreement would provide that the Port Authority pay a net amount not to exceed 1,500,000 to the city,after deducting the sales prices for the miscellaneous properties sold to the city, arrange for third partypayments to the city in lieu of sales tax, and landscape the north side of Barbours Cut Blvd. from the westterminal line to Wilson, with screening plantings as agreed on by the parties.Staff anticipates that Morgan’s Point City Council will consider these matters early next month.Staff Evaluation/Justification:Staff recommends that the Port Commission authorize the Port Authority to a Memorandum of Agreementand Industrial District Agreement with the City of Morgan’s Point and approve a net payment to the citythereunder in the amount of 1,500,000.7
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F. EXECUTIVESubject2. Acknowledgment of a gift to the Port Authority under Special DistrictLocal Laws Code Section 5007.228: 1,000 from Magellan TerminalsHoldings, L.P. for equipment, training, or team building.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, acknowledge acceptanceunder Special District Local Laws Code Section 5007.228 of a gift to the PortAuthority: 1,000 in relief assistance from Magellan Terminals Holdings, L.P. forequipment, training, or team building, and direct the Chief Legal Officer to recordthe name of the donor, a description of the gift, and a statement of the purpose ofthe gift in the minutes of the Port Commission.Category:GeneralDepartment:LegalStaff Contact:Erik ErikssonBackground:Last month staff at the Magellan Galena Park Terminal contacted Chief William Buck of the Port Authority FireDepartment and provided a 1,000 donation in support of the department. Its intended use is for FireDepartment equipment, training, or team building.The donation was accompanied by an expression of thanks for the department’s support of the port and theoil industry.Staff Evaluation/Justification:Section 5007.228 of the Special District Local Laws Code provides that the Port Authority may accept a giftvalued at 500 or more if the Port Commission acknowledges the acceptance of the gift within 90 days of itsreceipt.The statute additionally provides that the Port Authority must record the name of the donor, a description ofthe gift, and a statement of the purpose of the gift in the minutes of the Port Commission.The Legal Department recommends that the Port Commission acknowledge acceptance of this gift asprovided above.9
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H. COMMERCIALSubject1. Approve a lease for a three-year term with AllTrans Port Services, LLC forapproximately 3.04 acres in Block 23, Industrial Park East, effective noearlier than February 1, 2022, at an annual base rent of approximately 115,824, subject to annual base rent escalation of the greater of 3% orthe increase in the Consumer Price Index.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, approve a lease for a threeyear term with AllTrans Port Services, LLC for approximately 3.04 acres in Block 23,Industrial Park East, effective no earlier than February 1, 2022, at an annual baserent of approximately 115,824, subject to annual base rent escalation of thegreater of 3% or the increase in the Consumer Price Index, and further authorize theExecutive Director to do any and all things in his opinion reasonable or necessary togive effect to the foregoing.GoalsSTRATEGIC GOAL #3 - PARTNERSHIPS (Develop and Strengthen ExternalPartnerships)STRATEGIC GOAL #4 - STEWARDSHIP (Create Greater Value for the Region)Category:LeasesDepartment:Real EstateStaff Contact:R.D. TannerBackground:AllTrans Port Services, LLC (AllTrans) has requested that the Port Authority lease approximately 3.04 acres atBlock 23, Industrial Park East, for a three-year term. AllTrans has leased this property under a month-tomonth lease since December 9, 2021 for storing and handling steel products, containers, and general cargoand desires to convert to a term lease. AllTrans plans to use this property for the same purpose under theproposed term lease.Staff Evaluation/Justification:Staff recommends the Port Commission approve the proposed lease with AllTrans under the terms describedabove.11
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H. COMMERCIALSubject2. Approve amendments of two leases with Kinder Morgan Petcoke, L.P. forapproximately 90.3 acres and 23.18 acres at the Bulk Materials HandlingPlant to extend the terms for five years to expire June 30, 2027, effectiveno earlier than July 1, 2022, at combined annual base rents ofapproximately 4,237,054.32, subject to annual base rent escalations equalto the increase in the Consumer Price Index for the 90.3-acre lease and 3%for the 23.18-acre lease.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, approve amendments of twoleases with Kinder Morgan Petcoke, L.P. for approximately 90.3 acres and 23.18acres at the Bulk Materials Handling Plant to extend the terms for five years toexpire June 30, 2027, effective no earlier than July 1, 2022, at combined annualbase rents of approximately 4,237,054.32, subject to annual base rent escalationsequal to the increase in the Consumer Price Index for the 90.3-acre lease and 3%for the 23.18-acre lease, and further authorize the Executive Director to do any andall things in his opinion reasonable or necessary to give effect to the foregoing.GoalsSTRATEGIC GOAL #3 - PARTNERSHIPS (Develop and Strengthen ExternalPartnerships)Strategic Objective 3a. - Cultivate key relationships to accomplish common goalsSTRATEGIC GOAL #4 - STEWARDSHIP (Create Greater Value for the Region)Category:LeasesDepartment:Real EstateStaff Contact:R.D. TannerBackground:90.3-Acre LeaseBy Minute No. 2007-0626-18, the Port Commission authorized a ten-year lease, with four five-year mutualextension options, with Kinder Morgan Petcoke, L.P. for approximately 90.3 acres, including Wharves B1 andB2, out of the Bulk Materials Handling Plant, commencing on July 1, 2007 (the “90.3-acre lease”). Theproperty is used for the storage and handling of dry bulk cargo and “super bags” of dry bulk cargo, or othercargo as approved by the Port Authority.By Minute No. 2011-0405-12, the Port Commission authorized a first amendment to the 90.3-acre lease toamend provisions relating to Additional Rent as defined in such lease.By Minute No. 2013-0122-31, the Port Commission authorized a second amendment to the 90.3-acre leaseto, among other things, exercise the first of the four five-year mutual extension options, thereby extendingthe term of the 90.3-acre lease to June 30, 2022.On December 8, 2021, Kinder Morgan Petcoke, L.P. sent a written notice to the Port Authority of its intentionto exercise the second of the four five-year mutual extension options for the 90.3-acre lease, which wouldresult in a termination date of June 30, 2027.13
23.18-Acre Lease (formerly, 28.49-Acre Lease)By Minute No. 2011-0405-12, the Port Commission authorized a term lease, with four five-year mutualextension options, with Kinder Morgan Petcoke, L.P. for approximately 28.49 acres of Block 5 out of the BulkMaterials Handling Plant, commencing on April 8, 2011 and terminating on June 30, 2017 (the “28.49-acrelease” or as described below, the “23.18-acre lease”). The property is used for the construction ofimprovements and the storage and handling of dry bulk cargo and “super bags” of dry bulk cargo, or othercargo as approved by the Port Authority.By Minute No. 2013-0122-31, the Port Commission authorized a first amendment to the 28.49-acre lease to,among other things, exercise the first of the four five-year mutual extension options, thereby extending theterm of the 28.49-acre lease to June 30, 2022.By Minute No. 2013-0625-33, the Port Commission authorized a second amendment to the 28.49-acre leaseto, among other things, increase the leased premises to approximately 29.02 acres of Block 5 and Block 9out of the Bulk Materials Handling Plant.By Minute No. 2018-0130-14, the Port Commission authorized a third amendment to the 28.49-acre lease toreduce the leased premises to approximately 23.18 acres. This amendment enabled the Port Authority toacquire leased property to secure a workable land lease for the proposed Port Authority's Green Bayou LiquidBulk Export Terminal development.On December 8, 2021, Kinder Morgan Petcoke, L.P. sent a written notice to the Port Authority of its intentionto exercise the second of the four five-year mutual extension options for the 23.18-acre lease, which wouldresult in a termination date of June 30, 2027.Staff Evaluation/Justification:Staff recommends the Port Commission approve the proposed two lease amendments.14
H. COMMERCIALSubject3. Approve a second amendment to the lease with TPC Group LLC forapproximately 6 acres at Block 3, Sims Bayou, to extend the term for oneyear, effective no earlier than April 1, 2022, at an annual base rent ofapproximately 256,042.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, approve a secondamendment to the lease with TPC Group LLC for approximately 6 acres at Block 3,Sims Bayou, to extend the term for one year, effective no earlier than April 1, 2022,at an annual base rent of approximately 256,042, and further authorize theExecutive Director to do any and all things in his opinion reasonable or necessary togive effect to the foregoing.GoalsSTRATEGIC GOAL #3 - PARTNERSHIPS (Develop and Strengthen ExternalPartnerships)STRATEGIC GOAL #4 - STEWARDSHIP (Create Greater Value for the Region)Category:LeasesDepartment:Real EstateStaff Contact:R.D. TannerBackground:By Minute No. 2020-0428-09, the Port Commission authorized a one-year lease with TPC Group LLC forapproximately 6 acres out of Block 3, Sims Bayou. The property is used for parking vehicles for TPC GroupLLC’s contract refinery personnel.By Minute No. 2021-0223-06, the Port Commission authorized an amendment to the Lease to extend it foran additional one-year term, effective no earlier than April 1, 2021, at an annual base rent of approximately 248,584.TPC Group LLC has requested an additional one year extension. The property would be used for the samepurpose as stated above. The annual base rent would be subject to escalation of the greater of 3% or theincrease in the Consumer Price Index.Staff Evaluation/Justification:Staff recommends the Port Commission approve the proposed lease amendment.15
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I. FINANCESubject1. Approve the purchase of insurance from various carriers effective March1, 2022, for the Port Authority’s primary and excess property and casualtyinsurance coverage needs, in a total amount not to exceed 5,517,350.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, (i) approve the purchase ofinsurance from various carriers effective March 1, 2022, for the Port Authority’sprimary and excess property and casualty insurance coverage needs as set forthbelow, in a total amount not to exceed 5,517,350, (ii) authorize contract renewalnegotiations with the insurance carriers prior to contract expiration, to betterdetermine in advance the need to issue a formal request for proposals for the nextcontract year, and (iii) further authorize the Executive Director to do any and allthings in his opinion reasonable or necessary to give effect to the foregoing.Type of Coverage; Premium; Carrier(s)(1) Property - (buildings, contents, electronic data processing equipment); 1,754,453 with Various Carriers in a Layered Program, as depicted on participationgraph(2) Terrorism - 26,231 with Lloyd’ Syndicate carrier(3) Contractors Equipment - 1,873,666 plus Additional Estimated New Premium 244,356; in Layered Program with multi-carriers(4) Boiler & Machinery/Equipment Breakdown - 95,480 with carrier, Travelers(5) Excess Workers’ Compensation - 255,310 with carrier, Midwest Employers(6) Excess Umbrella - 685,000 with carrier, Lloyds of London(7) Public Officials - 240,158 with carrier, AIG and ACE(8) Crime - 9,003 with carrier, Travelers(9) Cyber - 53,458 with carrier, Corvus(10) Fiduciary Liability - 500,200 with carrier, Great American(11) Special Events - 7,612 with carrier, Nationwide(12) Fire Truck Auto PD - 13,135 with carrier, Great American(13) Foreign Package - 2,500 with carrier, AIG(14) Special Crime - 10,395 with carrier, US Specialty Ins. Co.(15) Mobile Command Center - 24,580 with carrier, Travelers Lloyds(16) Maritime Education – 1,141 with, Federal Insurance Company(17) UST/AST - 4,720 with, Commerce & Industry(18) Hull/Protection & Indemnity (Marine) - 160,946 with various carriers(19) Pollution for P/I (Vessels) - 10,077 with carriers: State National/Starr/AscotGoalsSTRATEGIC GOAL #4 - STEWARDSHIP (Create Greater Value for the Region)Category:Awards, Amendments & Change OrdersDepartment:Risk ManagementStaff Contact:Norma EssaryBackground:The Port Commission has previously awarded a one-year contract extension to McGriff InsuranceServices (McGriff) to serve as the Port Authority’s Broker of Record in the procurement of Property andCasualty insurance coverage.17
McGriff’s contractual responsibilities include assisting staff in the development of insurance specifications,submitting those specifications to select insurance markets, assisting in evaluating proposals received,assisting in negotiating policy terms and conditions with carriers, and making recommendations forplacement of coverage.Staff Evaluation/Justification:The total amount requested by staff of 5,517,350 takes into account that premiums on several policies aresubject to adjustment for asset additions, actual payroll amounts, and revenue, as well as the timing andvalues of asset additions.Staff recommends, and McGriff concurs, that the Port Authority enter into contracts with the carriersindicated herein for the type of coverage and maximum annual premiums listed, as providing the best valueto the Port Authority to address its property and casualty risk exposures.18
I. FINANCESubject2. Authorize 1,000,000 to fund the Port Authority's self-insurance lossfund account for workers' compensation and liability claims for insuranceyear 2022-2023 and authorize its third-party claims administrator to payclaims in accordance with the Amended Insurance Program andIndemnification Policy dated February 2018.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, authorize 1,000,000 to fundthe Port Authority's self-insurance loss fund account for workers' compensation andliability claims for the insurance year 2022-23 and authorize its third-party claimadministrator to pay claims from such account in accordance with the AmendedInsurance Program and Indemnification Policy dated February 2018, and furtherauthorize the Executive Director to do any and all things is his opinion reasonable ornecessary to give effect to the foregoing.GoalsSTRATEGIC GOAL #1 - PEOPLE AND ORGANIZATION (Be the Best Place to Work)Strategic Objective 4b. - Prepare for disruptive events and mitigate their impactStrategic Objective 3b. - Demonstrate transparency and accountabilityCategory:Awards, Amendments & Change OrdersDepartment:Risk ManagementStaff Contact:Norma EssaryBackground:By Minute No. 2010-0928-09, the Port Commission authorized establishment of a self-insurance programeffective March 1, 2010. Port Authority staff recommended several minor amendments in February 2015 andMarch 2018, and those were subsequently approved by the Port Commission when it adopted an AmendedInsurance Program and Indemnification Policy (Program) by Minute No. 2015-0224-40, as amended byMinute No. 2018-0327-13. The Program has been a cost-effective risk financing alternative to traditionalinsurance, and would provide protection for the Port Authority, the Port Commission, and employees for theinsurance year from March 1, 2022 to February 28, 2023.Staff Evaluation/Justification:Based upon actuarial projections as of June 30, 2021 and analysis of the cumulative funded position of thereserve, staff recommends the Port Commission authorize 1,000,000 to be added into the dedicated selfinsurance loss fund account to pay for all covered claim costs and expenses related to workers’compensation and liability claims expected to be incurred during the 2022-2023 insurance year.These funds are initially retained by the Port Authority; periodic transfers would be made to the PortAuthority’s third-party claim administrator on an “as-needed” basis to enable payment of claim costs.19
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I. FINANCESubject3. Approve the audited financial statements for the Port of HoustonAuthority Restated Retirement Plan for the fiscal year ended July 31, 2021.MeetingJan 25, 2022 - PORT COMMISSION OF THE PORT OF HOUSTON AUTHORITYAccessPublicTypeActionRecommended Action The Port Commission, at its January 25, 2022 meeting, approve the audited financialstatements for the Port Authority Restated Retirement Plan for the fiscal year endedJuly 31, 2021, and further authorize the Executive Director to do any and all thingsin his opinion reasonable or necessary to give effect to the foregoing.GoalsSTRATEGIC GOAL #4 - STEWARDSHIP (Create Greater Value for the Region)Category:GeneralDepartment:Accounting / TreasuryStaff Contact:Curtis Duncan / Roland GonzalezBackground:Section 802.103, Texas Government Code, states:“(a) . the governing body of a public retirement system shall publish an annual financial report showing thefinancial condition of the system as of the last day of the fiscal year covered in the report. The report mustinclude the financial statements and schedules examined in the most recent audit performed as required bySection 802.102 and must include a statement of opinion by the certified public accountant as to whether ornot the financial statements and schedules are presented fairly and in accordance with generally acceptedaccounting pr
NGLs LP, Kinder Morgan Crude & Condensate LLC, Kinder Morgan Tejas Pipeline LLC, Kinder Morgan Texas Pipeline LLC, KM Liquids Terminals LLC, Linde, Inc., Shell Chemical LP, Shell Pipeline Company LP, South Tex 66 Pipeline Company, LTD, and Valero Refining-Texas, LP. Meeting Jan 25,
