FBCC, OHPA meet to discuss mutual concerns

Submitted by Suanne Z. Thamm
Reporter – News Analyst
March 28, 2019  –  2:00 p.m.

The Fernandina Beach City Commission (FBCC) and the Nassau County Ocean Highway & Port Authority (OHPA) held a Joint Special Meeting on March 26, 2019 at 6:00 p.m. in Fernandina Beach City Hall Commission Chambers.  All commissioners of both bodies were in attendance. 

The meeting had been billed as a Special Meeting, meaning that votes could have been taken, but the participants confined their action to discussion and direction to their staffs  A future meeting will be scheduled following consultation on key topics by the legal counsels of both bodies.

The City and OHPA have had an uneasy relationship over recent years, dating back to actions taken by Kinder Morgan, the previous port operator, who had applied for permits to handle coal at the Port of Fernandina and the adoption of a Port Master Plan five years ago, elements of which were challenged by city residents.  City Commissioner Chip Ross, both prior to his election and since, has spearheaded efforts to make port governance and operations more transparent.  He serves as the FBCC liaison to OHPA meetings.   Virtually all items on the Special Meeting agenda were placed there by Ross.

While Ross and city Vice Mayor Len Kreger spoke to the agenda items, other city commissioners generally remained silent.

OHPA Chair Robert Sturgess noted that both OHPA and the Port of Fernandina were in the process of undergoing significant change.  He acknowledged two new Commissioners:  Scott Hanna (District 3) and Mike Cole (District 5).  Barb Amerigan attended in her capacity as Administrative Office Manager, having recently replaced long serving Joanna Cason, who retired last year.  Sturgess also introduced new board attorney, Jeb T. Branham, who has replaced local attorney Clyde Davis, who resigned last year.  Sturgess also reminded those in attendance that port operations were now being handled by Worldwide Terminals – Fernandina (WWT), which replaced Kinder Morgan earlier this year.  Christopher Ragucci, WWT President and CEO was also in attendance at the meeting.

Ragucci, who lives in the city, expressed a willingness to listen to city and citizens’ concerns and address them as appropriate.

Fewer than a dozen members of the public and media were in attendance. 

M-95 Marine Highway Designation

According to a letter from Port Manager Laura DiBella, the Port of Fernandina, Ocean Highway and Port Authority, along with its terminal operator, Worldwide Terminals Fernandina, seeks city support in applying for an America’s Marine Highway Designation for a container barge service originating from Fernandina, with calls potentially to the Port of Brunswick, Savannah and Charleston – a very high truck traffic corridor at present.

In her letter of support for the designation, DiBella wrote, “Cargo transported predominantly by truck both to and from the Port of Fernandina is becoming increasingly more difficult with the trucking regulations in place and the fact that the Port is bound by a historic district in the City of Fernandina Beach, as well as, a rapidly growing The Port is located on a barrier island and its ability to serve the community by truck could be severely crippled in a significant weather event.  The on-dock rail service would be severely compromised, if not devastated, as well as, the only rail line to the island runs concurrent with the northernmost bridge to Amelia Island, the Shave Bridge.  Implementing this barge service is essential to the overall success and sustainability of not only the Port, but the viability of the island overall should disaster occur.  Quality of life for the residents of Nassau County would also likely improve with the implementation of this service as the number of trucks taken off the road in transit to and from the Port would be substantial.”

This official designation would enable the port to apply for grant funding to implement this short sea shipping barge service, aptly dubbed the Fernandina Express Container Barge Service, that, in tandem with the existing on-dock rail system, will ultimately take a tremendous amount of truck traffic off local roadways as cargo moves to and from North Florida to the above markets in the Southeast.

Port Commissioner Scott Hanna said that he believed this move was a positive responsive to city residents’ concerns about possible increases in truck traffic along SR 200 and on the island.

In response to questions, WWT’s Christopher Ragucci said that the route designation would be “M-95,” paralleling the interstate road designation “I-95.”  The initiation of a marine barge operation on that route is 2-3 months off.  He said that the three local plants — WestRock, Rayonier Advanced Materials and Lignotech — are supportive of the transportation alternative and have reacted favorably to the proposal, which would save on transportation cost savings.

The city will write a letter of support for this project.

Conservation Designation

City Commissioner Chip Ross asked OHPA to support changing the city’s Future Land Use Map (FLUM) to designate wetlands on Port property as Conservation.  Port Attorney Jeb Branham said that he had reviewed the situation and recommended that the FLUM not be changed since the land in question is already protected by a conservation easement.  OHPA Chair Robert Sturgess said that OHPA’s position would be to follow their attorney’s advice.

Ross suggested that by agreeing to his proposed change, OHPA would be helping the city’s flood rating.  Kreger advised OHPA that the city is in the process of revising the FLUM, so the change would not be an extraordinary burden or action.  “It’s not land that you would be able to do anything with,” Kreger said.  “It would do no damage to the Port at all.”  Branham suggested that he meet with City Attorney Tammi Bach to discuss the matter further.

Sturgess asked Mayor John Miller if OHPA could be provided with such requests in writing, along with background, rationale, and potential benefits resulting from the change.  He said that the city would also expect to see OHPA requests in writing prior to consideration.

Status of a draft revised Port Element for the city’s Comprehensive Plan

City Commissioner Chip Ross asked OHPA for comments on the proposed Port Element approved by the city’s Planning Advisory Board (PAB) in 2016.  He also acknowledged that the FBCC has not acted on the draft.

OHPA Chair Sturgess referenced a 2-hour workshop that Ross had attended during which OHPA commissioners had provided comments.  Ross said that the comments had been personally given to him but not provided to the city in writing.  Sturgess said that their written comments  had been provided in a memo from their attorney, which had been included in the meeting packet.

In response to a question from Vice Mayor Kreger, Branham said that from his reading of state statute, the Port’s Master Plan should be included in Coastal Management Section of the city’s Comprehensive Plan, in addition to the city’s Port Element.  If the city and OHPA cannot reach agreement, statute provides a procedure for reconciling differences initially via mediation.  Kreger said he hoped that the city and OHPA could sit down and come up with a Port Element that is mutually satisfactory.

Branham cited state statute in describing how ports should be treated in Comprehensive Plans.  He said that the city’s discretionary treatment of the port under the PAB proposal remained an open question.  City Attorney Tammi Bach saw the situation somewhat differently and cited other statutes that required the city to develop a Port Element to its Comprehensive Plan.  She said to Ross, “What you are trying to get to is what we need to include in our Comprehensive Plan.  I don’t think arguing about the effect of [OHPA’s] strategic plan or where it goes [in the city’s plan] matters.”

Kreger cited upcoming workshops in April to seek public input on revising the city’s Comprehensive Plan.  He recommended leaving further consideration of the Port Element to that process.

OHPA Commissioner Danny Fullwood said that OHPA is halfway through their 10-year Master Plan and that they acknowledge changes are needed.  He said that some of the points Kreger raised could be adopted via the new master plan, but that developing such a plan would probably take at least year.  He said OHPA would be glad to work with the city on their new Master Plan.

PAB Chair Frank Santry addressed the boards to clarify his understanding of the Evaluation and Review (EAR) process. Kreger took issue with Santry’s position, preferring to handle the matter via the overall review of the Comprehensive Plan. Ross said that as far as he was concerned, the matter of considering the PAB draft Port Element has not been resolved.  He asked for OHPA’s specific written objections that could be considered in moving forward.

Sturgess summarized OHPA’s position on the PAB draft.  “The obstacle is, in my opinion, that these onerous, draconian regulations on the Port were written for Kinder Morgan.  They applied for grants in our name, they brought coal into the city.  But we are not Kinder Morgan.  We’ve got a new operator, a new crane, a new administrator, a new Board — it’s all new.  All of these “thou shalts” and “thou shalt nots” are unnecessary and unfriendly.  And I think that’s the obstacle.  We are an independent special district of the state of Florida, and what [the proposed draft] does in a de facto way is attempt to convert us into a dependent district of the city of Fernandina Beach.  Our Charter, the Florida Legislature, doesn’t allow that.

“My impression is that [the proposals] are just so far out there, in what they require, it’s hard to even get started to comment.  And this was made clear at the last workshop that the purpose of these onerous regulations, is that if the port operator makes a mistake — even the tiniest, little mistake — and Commissioner Ross said this during the last workshop — then the city has the right to report us to the Seaports Council, which can stop our funding — in fact may be required to stop our funding if we are not in compliance with the Comprehensive Plan.

“If you were to legislate this as written, we would have to go to mediation and an administrative law judge and to the court of last resort — the First District in Tallahassee.  We would have no choice.  I don’t know if you’ve read [the PAB draft], but I urge you not to go forward with this.”

Ross took “great exception” to Sturgess’ characterizations of his remarks at the last workshop.  He said, “The purpose of these Comprehensive Plan amendments is to keep the citizens of Fernandina Beach safe.  That is what I have said and continue to say.  It is not just with Kinder Morgan but the port itself is a big concern to our citizens about hazardous materials, truck traffic and numerous issues.”

“I thought that might come up,” Sturgess replied.  “I listened to that meeting twice. … I wrote down in quotes what you said.  I didn’t misquote you, although you may have also said what you just said.”  He added that the PAB-included requirements for OHPA to comply with the law were unnecessary and should be removed.

Kreger said that he had a difficult time with the proposed draft.  “In my years of service on the PAB [prior to becoming a City Commissioner] I can’t remember a time when we used the Comprehensive Plan as a hammer.  So that in itself becomes a little bit of a problem, if we are trying to do that.”

OHPA Attorney Bradham interjected.  “That’s not Comprehensive Planning as laid out by the Florida Legislature,” he said. “[The PAB draft] is a regulatory document, not a planning document.  That’s the gist of our issue.”   Kreger agreed that some of the items cited — like those of a financial nature — were totally outside the scope of a Comprehensive Plan.  “They could be in your [OHPA’s] Master plan,” Kreger said.  Bradham said that would be appropriate.

Ross suggested that if the port operator would share a business plan with the city, such a document would help restore public confidence in the port.  “We don’t need a big, fancy document,” he said.  “We need to know what you plan to do over the next 5-10 years.”

Bach agreed that all the citizens would like to know that, but that the Growth Management Act has nothing to do with details of the port’s business.  She said, “How we use land, that’s what Comprehensive Planning is under Chapter 163 of state statutes.  It has nothing to do with Chapter 311 that covers ports and financing.” Kreger added that such information is available via the Port Master Plan.

The parties agreed that their attorneys should work together to begin finding solutions.  “This is progress,” Kreger said.

In response to City Commissioner Mike Lednovich’s request for the port’s business plan, Sturgess said he would try to bring that up.  “I can’t emphasize enough though:  everything is new.  It’s taken World Wide a year to rebuild the port.  We just got the new crane to replace the one that killed a port employee in 2016.  They are scrambling to put a port back together after almost 20 years of decay and negligence.  If you want to let us know specifically what you want to see in a business plan, I’ll take personal responsibility for trying to get it done.  But I’m not sure anyone can know what the future holds.”  Sturgess expressed frustration over criticism he receives from being either too optimistic or too pessimistic.

Port operator Christopher Ragucci indicated that Worldwide Terminals is still in the process of trying to determine its needs before proceeding with requesting bond funding.  He said, “In connection with any bond offering that we are considering, there will be a public statement of offering that will contain an extensive feasibility study.  This would be close to a business plan for the next 5 years.  If we do go forward with the bond offering, we’d be happy to make that information available to you.  That would certainly answer any questions you or the citizens might have.  Whatever we decide to do here, it affects my family as well as all the other citizens.  We don’t take orders from some company in Houston; we are in this together as friends and neighbors.  That will always be our guiding approach to making decisions.”

Channel Realignment

City Commissioner Ross, with assistance from Florida Inland Navigation District (FIND) Commissioner Lynn Williams, launched into an extended discussion over problems in dealing with the U.S. Army Corps of Engineers (ACE) over alignment of the Federal channel in the Amelia River.  Although Congress directed that the channel be moved 100 feet westward in 2000, the move never took place because no funding source was provided.  The deep draft channel is not marked by buoys and was last used in the early 1980’s.

The city asked for OHPA support in forcing the channel move westward to assist in improving the Fernandina Harbor Marina.

Sturgess asked the city to provide its request in writing, along with the background information.

City Zoning Authority

Ross asked if OHPA believed the Port of Fernandina was bound by city zoning.  Sturgess asked why the issue was surfacing at this time.  Ross said that because the port is planning to put in warehouses, he wanted assurances that city zoning would apply.

Bach recapped two previous instances where OHPA had applied to the city for zoning changes with respect to properties it owns on North 3rd Street.  Those requests had been denied, and the city’s decisions have been respected.

Port Commissioner Carrol Franklin said that the rezoning request had been made to allow port employees to park their cars on the 3rd Street lots, thereby freeing up waterfront parking for trucks and other vehicles that were not compatible with a residential area.  Ragucci, who was not here at the time of those decisions, said that he believed OHPA had made a well reasoned and sound decision to request rezoning that would have had no deleterious impact on citizens, but that the city turned it down.

Ross said, “Neighbors at the time thought it was quite deleterious.”  He added that most houses in that neighborhood had been there long before the advent of the port.  Ragucci reminded everyone that Ross had moved into that neighborhood relatively recently.

Port Commissioner Fullwood raised the prospect of having to provide new quarters for U.S. Coast Guard Operations, which currently operate out of a dilapidated wooden building.  “If we can’t find them new quarters, they will move back to Jacksonville.  That would be very bad for us because it would take the Coast Guard a long time to respond to needs for assistance here.

“We may want to build a new facility — 10 or 20 years in the future — to include a new Customs House and the Coast Guard.”

Following a brief discussion over problems with truck drivers and trucks on Dade Street, Mayor Miller adjourned the meeting at 7:30 p.m.

For more information about the Port of Fernandina and the Ocean Highway & Port Authority, visit their website.