City Council

Summary/Final Minutes – Work Session – June 25, 2013 Savannah City Government SUMMARY/FINAL MINUTES MAYOR AND ALDERMEN WORK SESSION June 25, 2013 – 1:00 pm PRESENT: Mayor Edna B. Jackson, Presiding Alderman Van R. Johnson, II Mayor Pro-Tem Alderman Tony Thomas, Chairman of Council Alderman Mary Osborne, Vice-Chairman of Council Aldermen Carol Bell, Mary Ellen Sprague, Tom Bordeaux and Estella Shabazz City Manager Stephanie S. Cutter City Attorney W. Brooks Stillwell Asst. City Attorney William W. Shearouse ABSENT: Alderman John Hall (attending a GMA class) Council Lunch Mayor Jackson called the meeting to order. Cruise Ship Study Presentation Bruno Elias-Ramos, Principal-in-Charge of BEA Architects, Inc. presented an overview of the Phase One study that analyzed three prospective sites for a cruise terminal capable of handling approximately 2,700 passengers and a berthing/docking station. Information for the study was compiled from the U.S. Army Corps of Engineers, Savannah Pilots Association, U.S. Coast Guard, U.S. Fish and Wildlife Service, National Marine Fisheries Service, Georgia Department of Natural Resources, Colonial Oil, Georgia Ports Authority, Georgia Archaeological Site File and Georgia’s Natural, Archaeological and Historic Resources. The selected locations were Site A: Silo/Atlantic Cement Tract; Site B: Powell Dufferyn Tract; and Site C: Savannah River Landing Tract. Critical demographics and psychographics within a one day drive of Savannah, along with the general location and characteristics were discussed for each site. The presentation covered site and infrastructure data, navigation and hydrographic information, water side structures, preliminary dredge analysis, uplands natural resources, marine biological habitats, and underwater archeology. The three sites each presented both opportunities and challenges to the development and operation of the cruise terminal. Advantages and disadvantages were assessed and a table ranking each site from most to least desirable was provided in the presentation; the Savannah River Landing Tract had the most desirable ranking. The report also evaluated environmental impacts, navigational challenges, compatibility with the Georgia Ports Authority vessel operations and its effects on the Savannah River. Other conceivable issues assessed were 1  Summary/Final Minutes – Work Session – June 25, 2013 technical investigations, utility/traffic coordination, site challenges and docking requirements. Additional considerations were waterside/marine conditions and the general infrastructure existing at all three sites. Mr. Ramos also reviewed Phase Two of the study which covered landside due diligence, site analysis that included qualitative testing, conceptual cruise terminal/site plan design and traffic analysis. The presentation concluded with project deliverables for Phase 1 and 2 consisting of documentation support required for USACD permit applications. The PowerPoint presentation is attached and made a part of the permanent record. During and at the close of the presentation the following questions were asked: Alderman Shabazz: For visual clarity, is the vessel to be used in Savannah the size of the larger ship shown in the presentation? What is meant by “best between New York and Cape Canaveral?” What is the definition of “cold iron” and does it require additional costs? Mr. Ramos stated the larger ship shown on the slide seats 5,000 passengers whereas the Savannah vessel will have a seating capacity of 2,000-2,500. From a marketing perspective, Savannah has the best port, demographics and brand recognition of cities between New York and Cape Canaveral. The term cold iron is when ships dock, turn their engines totally off and connect to shore power. No, there is no additional cost as the vessel comes under power when it berths at a selected site, is tied off with the mooring lines and then hooks up to the shore power. Alderman Sprague: Does the West Coast use cold iron for environmental reasons? Mr. Ramos said yes, places like Alaska, California and Seattle have heavy traffic along with severe smog and emission issues. These locations want to minimize any further impacts to the environment so they have incorporated cold iron into their process. If Savannah chooses not to use cold iron will that put the City at a disadvantage? It would place Savannah at a slight disadvantage with the cost because the infrastructure would have to be installed, but it’s beneficial to the environment and cruise ships. When talking about least and most desirable, was cost a consideration? No, it is based on infrastructure and existing location but not cost. Why are psychographics relevant? Those are factors the cruise industry looks at when they review sites. Their business is cruises, but they are actually a marketing company. In reference to dredging, do you know of any contaminations at any of these sites? We do not know of any, but the next phase would be testing at the selected site. Georgia Ports Authority probably has an approved disposal site and if we could use their site that would be the best solution. Alderman Osborne: What is the length of commitment from the cruise line to the City? The length of commitment depends on the location. The commitment for Miami or Cape Canaveral would be ten to fifteen years. What is the shortest commitment? The shortest is none and it can go from zero to as long as you want. There are advantages from a job market and economic standpoint, but there are also risks to the city. Some cities are willing to take the risk and sign the agreement. Are you familiar with the agreement with Charleston? No. Alderman Bordeaux: What is your position with BEA Architects and what locations have you worked on? Mr. Ramos stated he is the senior principal with BEA and has worked on projects in Miami, Cape Canaveral, Long Beach, CA, Spain, Italy and currently one in Bayonne, NJ. Asked how the one-day drive to the metropolitan Savannah area is measured and Mr. Ramos stated it is approximately a 400 mile, eight hour drive. Who does Savannah compete with? Savannah is in direction competition with Jacksonville, Charleston and a little with Cape Canaveral. Who does 2  Summary/Final Minutes – Work Session – June 25, 2013 Charleston compete with? Jacksonville and Baltimore. Who is Jacksonville competing with? Cape Canaveral and Charleston. Can you define marine infrastructure? The marine infrastructure consists of dredging, bulkheads, mooring dolphins, and fenders and is the actual in-water structure that will support the cruise ships. Asked if Mr. Ramos was an advocate for Savannah building this terminal. Mr. Ramos stated he believes Savannah has the market to build this type of facility. Alderman Johnson: What is the next phase and the next study? The next study will look at land side due diligence, site analysis including qualitative testing, conceptual cruise terminal/site plan design and traffic analysis. Do you conduct the testing as well as the design? Mr. Ramos responded yes. Was the study limited to the best sites in the area or the best sites in the city limits of Savannah? Mr. Ramos said he believes it was within the city limits since it was a city project. Does Savannah own these sites? Ms. Cutter responded no and Mr. Ramos stated they are not aware of any being City owned. What is the timeframe starting with this type of report to completion of a terminal? It depends on various factors and could be anywhere from two to possibly five years. Currently, you are looking at 2015 or 2016 for a cruise ship sailing out of Savannah. Do you have an approximate number of people in this area that are likely to cruise? Yes, those numbers were provided in the original report, but no this one. We identified 56.4 million people within the drive-up market and the airlift capacity for Savannah. What in your experience has been historically the amount of time from the investment to breaking even? Mr. Ramos stated that was also in the original report. He didn’t recall the exact numbers, but will get back to Alderman Johnson with that information. Alderman Thomas: When the RFP was released by the City, did you compete like everyone else for the contract? Yes sir. Have you been contacted to conduct a study and then advised the client not to proceed with building a cruise terminal? Yes, that occurred in San Francisco. Did your firm have anything to do with the facility in Mobile, Alabama? What in your opinion do you believe the problem was with Mobile? Mr. Ramos stated his firm was not involved with the Mobile project, and he does not have enough information to comment. Alderman Bell: Several references have been made regarding the 2000 study and at that time Council was convinced that this project was advantageous to the City. Can you elaborate on this? The cruise market affects all areas of a business community and creates many different types of jobs. What about other cities and ports that built a cruise terminal and failed? Crime and safety are major issues impacting the cruise industry and Honolulu, Philadelphia, Pittsburgh and New York are a few cities that were not successful with this type of venture. Alderman Shabazz: Will additional funds be needed for dredging and deepening the Savannah port? Yes there will be costs to the City for each site as the report delineates. Will there also be a cost when existing permits expire? Each site will require new permits, but the City can capitalize on due diligence already conducted. Alderman Bell: Asked the older members of Council if there was any consideration given to using the structure owned by Georgia Ports Authority as a testing facility and then making the decision to move forward with building the City’s own terminal. Is the temporary structure still in place? Yes, it is but it is not being used. 3  Summary/Final Minutes – Work Session – June 25, 2013 Mayor Jackson: Georgia Ports was a part of the original planning, but I will defer to Alderman Thomas to respond to this question. Alderman Thomas: Georgia Ports has been at the table since day one, but their primary use has and is cargo not passengers. Georgia Ports made it very clear from the beginning they were not willing to give up Ocean Terminal One and transition it from cargo to a cruise port. Mr. Ramos also stated Georgia Ports Authority has not been very forthcoming when it comes to the cruise industry. Mayor Jackson: When cruise ships use the same waters as military vessels they are in direct competition with military deployments. How have you seen this handled at other locations or ports since cruise ships do not have top priority? Mr. Ramos told Mayor Jackson that was a very good question and he just discussed this issue that very morning. From a planning and navigational perspective in Savannah, irrelevant of the cruise, BEA believes the eastern turning basin needs to be widened as part of the dredging plan. If there is a deployment issue, there has to be an alternative solution to prevent this type of bottleneck. Chuck Townsley, BEA Project Manager stated that resiliency and resumption studies have to be conducted that analyze the infrastructure in terms of potential incidents that keep commerce flowing smoothly. Miami handles the coordination of cruise ships and other vessels by collaborating with the Coast Guard; cruise ships are usually given first priority. Alderman Bordeaux: Will the next study be an additional cost or is this already paid for? It is part of what has already been contracted. If Council decides not to move forward with the next study will there be a refund? The contract has not yet been paid. Will it cost more to do the next study and how much? Yes, the contract is for approximately $90,000. What other type of businesses are usually in the proximity of cruise ships? All types of businesses are built, owned and managed by the cruise ship industry. Mayor Jackson: The Mayor thanked Mr. Ramos for his presentation and asked him how many initial ships would come into Savannah? He stated that the number of passengers not the number of ships is the most important factor and is what generates revenue. The Mayor said Council needs to hear from their citizens on this issue and will adjust the Council meeting agenda to accommodate three minutes per person for public comments on Thursday, June 27, 2013. Mayor Jackson adjourned this meeting. Dyanne C. Reese, MMC, Clerk of Council 4