The cruise ship plans for here in good old Galveston have been shit-canned, but the ships might be moved somewhere else. $236 million taxpayer bucks and FEMA does not want to talk about it.
Here's the article from todays paper:
Plans for shelters on cruise ships dropped
By Laura Elder
The Daily News
Published September 8, 2005
GALVESTON — Federal officials have abandoned plans to house more than 4,000 Hurricane Katrina survivors on luxury liners in Galveston.
With scores of volunteers and city officials on alert, word came Wednesday that there still were no takers among evacuees for the floating shelters.
The decision ended a chaotic week for city officials, who for four days raced to sort out the logistics of providing transportation, water and school buses to cruise ships that would essentially house small cities on public docks.
The refusal of survivors to leave Houston for the cruise ships also raises questions about the federal government’s unusual agreement to pay Carnival Corp. $192 million to provide the temporary housing.
The Federal Emergency Management Agency last week also agreed to pay Carnival $44 million for fuel reimbursements related to the shelters for an agreement worth $236 million.
‘We have options’
When it was obvious storm survivors weren’t willing to leave Houston, federal officials were defending their decision to charter the cruise ships.
“We have options,” James McIntyre, a FEMA spokesman said. “The ships will be used and the money well spent.”
Last week, the federal agency chartered three Carnival cruise ships as temporary housing for those displaced by Hurricane Katrina. Renting cruise ships for emergency housing is an unprecedented move.
Two of the ships — Sensation and Ecstasy — were supposed to dock in Galveston for six months. A third ship, funded though the same contract, is supposed to be berthed at the Port of Mobile, Ala.
Just how Sensation and Ecstasy will be used in Katrina relief efforts now wasn’t clear late Wednesday.
Sailing on
The ships may sail to either New Orleans or Biloxi, Miss., said Randy Welch, a FEMA spokesman. Federal officials said they would use the ships to house evacuees or emergency workers near other ports.
Federal officials declined to make public terms of their six-month agreement with Carnival.
“It’s an open-ended contract; it’s not finalized,” McIntyre said. “The contract has contingency amounts that may or may not be tapped depending on logistical considerations.”
Some Carnival Corp. representatives this week traveled to Houston shelters in an attempt to answer questions evacuees had about taking refuge in the ships.
Federal officials say they never expected such resistance.
But some shelter residents, traumatized by the destruction they saw in New Orleans, said they feared being near water again. Others, who the storm separated from family, said they were reluctant to leave Houston shelters until they reconnected with relatives. Some said they didn’t want their lives uprooted again.
“I think they wanted to know about the ships and what it’s like,” said Tim Gallagher, a Carnival spokesman. “It was becoming apparent that some of them were not familiar with cruise ships.
“With everything they had been through, the unknown perhaps was a little daunting.”
At $236 million, the cost of housing a single evacuee for six months would range from $30,000 to $60,000, depending on how many evacuees took shelter in the ships.
Carnival Corp. would not disclose typical earnings from the three ships in a six-month period, but said the federal contract was not particularly lucrative.
Taking the ships out of commission for half a year has forced Carnival to cancel trips, offer refunds to nearly 100,000 passengers or move them to other vessels, Gallagher said.
Changing course
“It’s extremely disruptive to our organization and to our business to pull three ships out of service on such short notice and for such a short period of time,” Gallagher said. “We will not make more money on this charter than we would have if we had simply operated these three vessels under a post-Katrina plan.”
A five-day cruise could start at $100 a day, depending on the accommodations. Housing evacuees in cruise ships could cost about $133 a day, federal officials said.
Carnival had planned to use its staff and provide meals to evacuees in Galveston. Because staff couldn’t depend on tips, the cruise line would pay its shelter staff more, Gallagher said.
Federal officials sought Carnival out and not vice versa, Gallagher said.
Some island residents have questioned the wisdom of sending thousands of storm evacuees to Galveston, a city vulnerable to hurricanes.
But both Carnival and federal officials said the ships would simply sail to safe harbors if a storm threatened the city.
Lower earnings
Carnival Corp. on Monday said severe weather caused by Hurricane Katrina and the use of its three ships in relief efforts would lower its earnings for the fourth fiscal quarter by up to 3 cents a share, or $25 million.
Normally, federal agencies move people displaced by catastrophes into neighborhoods of manufactured homes or encourage them to move to rental housing already available in their cities. But Katrina was so devastating, neither were options in New Orleans.
Cheaper, efficient
Floating shelters were cheaper and more efficient, federal officials said.
Galveston officials never asked for the floating shelters, but said they were willing to help.
McIntyre said FEMA chose Galveston to berth the cruise ships because the city is homeport to Carnival ships and near Houston, where thousands of storm victims last week were living in mass shelters.
But what if island officials had declined to take in storm evacuees during hurricane season? Would federal officials have been able to trump city leaders? Federal officials declined to say whether they had final say.
‘We negotiate’
“We negotiate, we don’t force anything on anyone,” McIntyre said. “We had complete support from the governor of Texas, from communities in Texas and that’s why we didn’t have to go into any laws. Every community stepped up to help fellow Americans.”
Some island businesses near the port waited Monday for Katrina evacuees to arrive at the Pier 25 cruise terminal.
Juan Cardona, a chef at nearby Fisherman’s Wharf, said he and other employees had been looking out for the busloads of evacuees that were supposed to make their way down Harborside Drive. He said he wasn’t surprised to hear they weren’t coming.
“Being that they (the cruise ships) are in the water, maybe people would be afraid,” he said.
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Reporter Sarah Viren contributed to this report