Nassau Legislative Delegation listens to citizen demands for port charter change

Submitted by Susan Hardee Steger
October 9, 2015

“Community concerns were  the result of a strategic plan that looked like it was going to take us in a whole new direction than what we were doing at the port.” Phil Scanlan Charter Change Advocate

State Senator Aaron Bean and State Representative Janet Adkins were met with an overflow crowd of citizens at the Nassau County Legislative Delegation Hearing held at the James Page Governmental Center on September 30. Although those who addressed the delegation requested support on topics ranging from education to the City of Fernandina’s hope to obtain state funding for storm water issues, the main draw was the request by concerned citizens to garner support from Bean and Adkin’s for changes to the Ocean Highway and Port Authority Charter (OHPA).

Retired attorney Frank Santry spoke of “structural problems” within the charter. He believes items to address within the charter are extensive government powers, a failure to protect the residential and historic downtown from dangerous cargo, and the conflict of interest between elected port management and domination by a port private contractor in every other facet of port function and administration.

Since most information provided to the port officials is through port manager Kinder Morgan, Santry believes an arm’s length relationship between the two entities is needed. He said the Nassau Legislative Delegation has an opportunity and public obligation to address remedies for the problems. Created by special act of the legislative, the charter has a list of powers completely unavailable to other ports in the state. There are eminent domain provisions, and a provision that allows public funding to run businesses in direct competition with other businesses.

According to Santry, the charter has outlived its usefulness and ignores the fact that the Port of Fernandina is located in downtown Fernandina. He asked that a limit be placed on the amount of cargo handled at the port and that an amendment be  added  to require city commission approval prior any taking through eminent domain. Santry pressured Adkins and Bean to “express their thoughts on the issues today.”

“A local bill needs local support.” said Senator Bean. “I’m looking for an endorsement from the port authority. There must be buy in.”

Representative Adkins, involved in earlier discussions with citizens concerned over the port strategic plan, wondered where the OHPA board stands on the charter issue and what elements might win OPHA support. “What impact does a modification to the charter have on outstanding bonds?, asked Adkins.  Although Santry responded there were none, Adkins said she heard the opposite from others.  She expressed concern over unintended consequences and she wants to hear from the rest of the community.  “What position has the city and county taken on the issue?, asked Adkins.

Santry responded to the suggestion that support be obtained from OPHA saying OHPA is derived from legislative authority and that government is often reluctant to give up any authority it holds. “This [OPHA] is derived from legislative authority and I don’t think it is inappropriate for the citizens of the community to expect it to be resolved by legislative authority and not necessarily by the consensus of all stakeholders,” said Santry.

Danny Fullwood, OHPA Commissioner said, “This [charter change] has not come before the full board and that must take place first. I don’t know what the rush is.” We have another year to work on these things. “There are probably some things we can agree on.” We are trying to rush when the board has not had the opportunity to look at it when these things can help or hurt either side. If we can come together next year and have meetings, that is what will help port, this is what will work.

Fullwood said the OHPA can work with the citizens and perhaps the opposing parties can come together.  Adkins told Fullwood his plans to work with the citizens is a positive idea so citizen concerns can be listened to with respect. She did received concerns from her office about the negative impact of the back and forth on the economic development in our community.  It is important to get together to find positive ground.

Johnny Miller addressed the delegation and spoke as a commissioner who looks forward to the issue coming before the city commission so the public can hear their opinions on the port issues and so the commission can act. He then spoke as a private citizen who spends a lot of time in three buildings downtown.  He said the buildings are “precious and they can’t be replaced.” People in this room love this community and will do the best thing for it. He looks forward to a “positive discourse.”

 

 

Faith Ross spoke to the port charter reminding the delegation the port is an independent special district created by the state legislator. It is to be of public benefit to the citizens of the county and the State of Florida. She said it is out of date and it doesn’t meet state statues. It offers powers to build hotels, motels, radios, casinos, and even to condemn public beaches and acquire them. All this can be done with no generation of tax revenue. The charter requires the special district to cooperate and coordinate activities with “units of local governments in which they are located.” She categorized the  charter is an “archaic outdated document to further harm the citizens of Nassau County.”

Christine Courso spoke to  the recent history of interaction between the community and the board of OHPA.  She said she does not have high expectations that the process will be positive or that it will happen quickly. The changes to the strategic plan was a “difficult birth. It took months before there was actual movement.” Bean interjected that even though, “it [was] a monumental achievement of consensus.” Courso said the current group of OHPA commissioners have alienated the community because they “don’t listen.” She also noted that the financial liability limit in the event of an accident according to Florida Statute o768.28 is $300,000.

Medardo Monzon said for  12 months this community revolted against the OHPA which threatened  citizens’ fundamental rights.  Although significant progress was made, the accomplishments were hard fought. The views of most citizens in the county is that the charter is archaic.  He challenged the delegation to work with all entities to change the charter so that  threats to public safety, private property, and conflicts of interest with port operator Kinder Morgan can be eliminated.

 

When Chip Ross, a resident of the historic district  asked to review a safety plan for the Port of Fernandina, Ross was told they couldn’t find the plan. The port handles hazardous and inflammable materials. With a bond payment due in 2020, and decreasing workforce, Ross says the port “lives on the dole” and is a “welfare dependent operation.”  The port squanders $100,000 of Florida taxpayer money in a master plan study that they now admit is “just a realm of possibility.”  The port depends upon the city for police, fire, roads and sewer and water an pays no taxes and does not want to abide by city ordinances.  “A review of the port finances demonstrates the port cannot pay its bills without taxpayer and Kinder Morgan’s subsidies.”  He  asked the delegation “to be part of a solution.”

Laura Dibella said she respects the opinions of others, but as director of the Nassau County  Economic Development Board she asked that those involved with possible charter changes proceed with caution. According to Dibella,”The port charter is an economic development tool. It is a job creator not just at the port.   “We are competing for several hundred million dollars’ worth of capital investment involving several hundred new jobs attached to the investment. Potential changes to the charter could hurt our competition advantage.  Since there are many concerns regarding economic development, she asked that all stakeholders be heard.  She wants to work with the public so that all stakeholders will be happy with the results.

Phil Scanlan began his comments saying he does not want to appear that he is “beating up on the port” because the port is meeting the needs of the community and doing what a port needs to do.” “Community concerns were  the result of a strategic plan that looked like it was going to take us in a whole new direction than what we were doing at the port.” Scanlan believes the root cause of the issue with the strategic plan is the state charter.

“There are 18 operations our port can do that Jacksonville can’t do, that Tampa can’t do, that no other port can do.” He asked, “Why is that?” Why does this port have “more power and authority than the biggest ports in Jacksonville?” “This is a tiny port in a little town.” “You must take responsibility at the state level.” “You need to help straighten this out.”

“I don’t think you can say I’ll just wait for these port people to tell me they want to take away all of the authority you have given them. “You gave it to them.” We need to negotiate with you [Nassau County Delegation] on the charter. “ It is your state charter. The charter is really out of whack.”

Adam Salzberg, OHPA commisioner said board members did not get the citizen proposal until Friday. He was “dumbfounded about this.” We have worked with the community on the master plan and “to say we can’t have a public discourse and get through this is not true.” “I’d like to put this off until next year.  I don’t think we can get it done this soon. I think we could come up with something perfect for both sides.” He acknowledged there are things which need to be looked at in the charter.

 

Hugh Graham, a resident of  Callahan, said he did not attend to “talk bad about the port.” He expressed to the delegation that instead of “one voice from Fernandina hammering the port,” people from Callahan, Hilliard, Boulogne, and Bryceville should be heard. There are stakeholders in other parts of the county that are impacted and who benefit from the port.   “There are changes that can be made but don’t take away the tools that are needed now and in the future.”  If there is a stakeholders meeting, Graham wants to see everyone invited.

Richard Bruce, OHPA chair said, “We are a business incubator. You never want to throw tools away. We need to make sure anything we do to change the charter is legal at the local, county, state and federal level.” He is willing to listen and willing to consider changes to the charter if it “enhances and benefits our community.” The purpose of the OHPA is to benefit  “the citizens of Nassau County first, and the citizens of the State second in that order. That is our job.”

John Barickman summarized citizen concerns.  He said Clyde Davis, OHPA attorney, gave the impression to concerned citizens at a previous meeting that  “We don’t care what you say or what you want. We [OPHA] have the power to do whatever we want and whenever we want to.  That power, regardless of the changes to the master plan, still exist. It is that power articulated by the attorney which concerns the people of this community and that is why it needs to be changed.”

Clyde Davis, OHPA attorney, said one of the charter changes proposed by the citizens’ group is to remove the ability for the OHPA to do business in other counties.  A change such of this according to Davis would negatively impact the “port’s ability to improve the local economy.” He used the closing of the Durango mill in St Marys as an example when service provides and employees who live in Nassau County were negatively impacted when the mill closed.

Despite citizen concerns over the financial condition of the port,  Davis said the port is in  the home stretch of paying off the  30 year bond  issue. We have not missed a payment. We have money  with the bond trustee to cover in the event of any default that might occur. “Our revenues are increasing as well as the tonnage going through the port.”

Davis said there is some “heartburn”over a provision in our charter that exempts OHPA from local governments supervision and  controls. “All public ports in the State of Florida from local government controls. We are not unique in that.  The law applies to all.”

Bean asked Davis if he agrees there are things that could be amended to which Davis responded, “If commissioners [OHPA] asked my advice {to change charter] I’d say yes and I’m going to do what they tell me to do.” Davis said the charter changes are all worth considering. “This must be a dialogue. The port commissioners  won’t listen to one voice or one fact or facet or one interest group. They must answer to those present and everyone who comes behind them and every situations that might need to be addressed in the future.”

Adkins complimented those who spoke saying “excellent points were made.” In particular there are types of businesses that aren’t in the charter  that should be in order  to reflect a new economy.  She was concerned about the  issue raised of safety is important and she’d like more information on the port safety plan. She said  no one addressed the impact of a charter change  on outstanding bonds and she would like information on that.  Adkins believes there is “room and an opportunity for making improvements to the charter.” She thinks there is  still time although Adkins is not sure consensus can be reached on all elements. She proposed another delegation meeting in November or December. She urged port board and community to continue this dialogue.

In closing Adkins said, “I’ve passed many  bills in Tallahassee and it is not easy. It is much easier when community works together to resolve issues. We must make sure we protect the port and our community.”

Senator Bean pushed for consensus between parties throughout the meeting.  OHPA Commissioners, Fullwood, Bruce, and Salzberg agreed to work with the concerned citizens to update the charter.  Bean concluded, “We [Adkins and Bean] come from a world of consensus.”

As Bean was ready to close the meeting, Tom Cote Merow addressed the delegation.
“Perception is reality. We feel as a public boxed in by this. There is a very clear fear element. There is power over us and power over our real estate and power over our economy. You aren’t taking it seriously enough.”

The Nassau County Legislative Delegation will gather again on December 7.