by Mike Sharkey
Staff Writer
Late last year, Jacksonville Port Authority officials started to notice a slight rebound in the economy. That rebound is continuing and Port Authority CFO Michael Poole told the Authority’s board of directors Monday that the end of the fiscal year is looking good.
“Seven months into the fiscal year, the trends we saw starting in December continue into April,” said Poole. “All of the major line items we track are above budget. Just about everything is above budget.”
According to Poole, the Port Authority could finish the year about $4.8 million above budget. He said with the exception of the operation of the Mayport Ferry, which will need a Port subsidy of around $600,000, the Port Authority’s expenses are down and its operational income is up.
Poole said because of unfilled personnel positions, the Port Authority has realized a savings so far in operational expenses of about $1.8 million. Income from cargo traffic in and out of the port, military traffic and cruise customers is about $3.3 million above budget estimates.
“It’s good news,” he said.
Port Authority Board Chair David Kulik credits the budget news to good decisions.
“Management has done a good job of controlling expenses,” said Kulik, who wanted to know what happens to the $4.8 million.
Poole said some of the funds will be used to pay the Port Authority’s debt service while the rest will be put into reserves. That reserve account, he said, has taken a beating over the past couple of years.
“In April of 2008, we had about $90 million in the bank. We have been spending it down,” he said. “Now, there is about $9 million.”
Poole also said he will meet individually with board members over the next few weeks to talk about the 2010-11 budget. The board is expected to approve that budget during its June 28 meeting in time to deliver it to City Council by July 1.
In other news from Monday’s meeting:
• The board approved funding for repairs to the slip at the Mayport Ferry. The project involves replacing the ferry’s slip walls, which Poole compared to shock absorbers or a “spring-loaded fender system.” The slip walls are what allow the ferry to bounce a little as it enters the slip on either side of the river.
“This has been on the Port’s budget for at least a year now,” said Poole, adding the existing system is about 25 years old. “It’s in fair condition, but now is the time to replace it.”
The Florida Department of Transportation is funding most of the project, while the Port Authority will pay for the final $178,125.
“This will add another 15 to 20 years of life” to the ferry, said Poole.
The Port Authority will pay for the project up front and be reimbursed through wire transfer by FDOT. Poole said the authorization for the reimbursement takes about two to three weeks.
• Port Authority CEO Rick Ferrin said by the June 28 meeting he and other Port Authority officials should be able to present two or three options for a new cruise terminal.
At the March JPA board meeting, Kulik asked Ferrin and his staff to essentially start the cruise terminal site selection process from scratch. Ferrin said he and staff re-examined every site that’s been under consideration.
“We continue to look at the last several sites,” said Ferrin. “There have been some changed conditions. Some of those sites may now have willing owners. We are giving each one a fresh look and eliminating those that don’t work. We are close to eliminating all but one or two that have real potential.”
The Port Authority will have to relocate its cruise terminal to make way for the Hanjin cargo terminal at Dames Point. Ferrin said he recently met with Hanjin officials and well as representatives of the International Longshoremen’s Association in an effort to iron out the final details of the labor contract for the cargo terminal. Ferrin said he’s optimistic a deal will be struck in the near future.
As for the cruise terminal, Ferrin said he doesn’t expect to get much, if any, federal funding. That means the site that’s selected must generate enough revenue to justify building the terminal and signing Carnival Cruise Lines to a long-term contract.
“We will translate that cost into what we need as revenue,” he said, adding traditional sources of funds are drying up. “That puts us in a more delicate position from a financial standpoint. The revenue must support the project.”
Ferrin said he met recently with members of the Mayport Waterfront Partnership to talk about building a cruise terminal on land the Port Authority owns along the river in Mayport Village. He said the meeting went well, but there is still plenty to be sorted out.
“This is a very complex decision with multiple variables,” said Ferrin.
• The board also approved allowing COO Chris Kauffmann to enter into negotiations with several consulting firms. Kauffmann and an internal committee recently completed the evaluations of firms in two areas: horizontal projects (wharves, docks, roads, railways and asphalt) and vertical projects (buildings and cranes).
The top three marine, civil and environmental firms (horizontal) were HDR Engineering Inc., CH2M Hill and Shaw Environmental. The top two structural and mechanical firms (vertical) were Shaw and Worley Paxon Komex.
Kauffmann said whichever firms are selected will serve as consultants on a retainer for projects under $2 million and studies under $200,000. He said negotiations will begin soon with the top-ranked firm in each division. If an agreement can’t be reached, he will move on to the next highest-ranked firm. By Florida law, no matter what, if a deal can’t be reached with a firm, the Port Authority is not allowed to go back to negotiations with that firm.
“It’s called shopping,” said Ferrin.
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