WASHINGTON STATE FERRIES

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Legislators question cost/benefit of WSF serving Shaw Island

posted 04/17/03
Does it make sense to spend $9 million to fix the Shaw Island Ferry Terminal or are there cheaper ways to serve the lightly populated island? The Transportation Bill recently approved by the Washington State House of Representatives does not include funds for the reconstruction of the terminal. The project was scheduled to go out for bid this week. According to Rep. Jeff Morris (D-Anacortes), the funds won’t be added until Washington State Ferries supplies the legislature with the cost benefit analysis it used to make the decision.

"We asked them repeatedly for the figures," he said. "They didn’t submit them and that’s why the item was dropped." Morris said the house will authorize the funds if the analysis shows the terminal upgrade is the most cost effective way to serve Shaw Island. It might be more cost-effective to provide a shuttle service between Shaw and Orcas Island, Morris said.

Some of the legislators thought San Juan County should use the Capron funds to pay for improvements to the Shaw Island ferry terminal. In 1935, legislation was passed which created the Capron funds as a way to give the county the gas tax collected in the county. This was done because the county did not have any state highways. Morris said other legislators believe that justification went away in 1941, when the state purchased the ferry system which is part of the state highway system. He predicted the Capron funds will likely go away within the next 10 years, as more people believe the justification no longer exists. "It is a huge subsidy that isn't available anywhere else," he said. "That's why the San Juans have lower property tax rates than other counties in the state."

Morris said, "I have worked and am working to get the Shaw Proviso removed and actually got the Capron Proviso removed."

The House Transportation Bill does not include funding for the Anacortes terminal improvements. Morris said the legislature wants WSF to figure out how it plans to increase revenue before it builds buildings. Part of WSF CEO Mike Thorne’s plan for the ferry system is to increase revenue 5 percent per year through various means such as adding retail operations at terminals. Morris said, " WSF is yet to reconcile its 5-5-5 (5 percent fare increases, 5 percent reduction in costs, 5 percent increased revenue) with its building plan. We're pushing it back until they have a revenue plan."

Funding for passenger-only ferries was included in the bill. Morris said when the legislature examined the reasons the system was "hemorraghing," they found three reasons.

1. Rich Passage: due to concerns about the wake, the ferries were running at a much lower speed than they were designed for. This led to increased wear and tear and higher fuel costs. "The boats were made to run on top of the water, not plow through it," said Morris.
   
   
2. The ticket price was too low. Morris said with commuter books the fare box recovery equalled 20 percent. The legislature set a goal of a 40 percent fare box recovery by the end of the next two bienniums.
   
   
3. WSF had up to run up to three crew shifts. The legislature was able to get an agreement from the union to run split shifts according to Morris.
   
   

The legislators also took a holistic approach to the issue. If passenger-only service ended, there would be more congestion on I-5 and a need for more roads.

Funding for year-round service to Sidney, B.C. was also included in the transportation bill. This winter service was shut down for two months while the Sidney dock was repaired. WSF plans to shut down Sidney service every winter from now on and completely dropping the run in 2009. Part of the reason is the cost of equipping ferries to meet U.S. Coast Guard Safety of Life at Sea (SOLAS) standards.

The legislators want all future ferries to be built to SOLAS standards. Murray said the Coast Guard would waive the SOLAS requirements in the meantime for boats going to Sidney, B.C. If the requirement was waived, WSF would have more flexibility in scheduling. As it is now, only the Elwha and the Evergreen State can do the Sidney run. Morris believes capacity to the San Juans would actually increase under the legislator's scenario.

San Juan Ferry Advisory Chair Bob Distler had a different take on the house bill. He believed year-found service to Sidney would adversely impact capacity in the San Juans. He expressed his concerns in a letter to Morris.

Distler outlined his opinion of the house bill to the Board of County Commissioners during their April 15, 2003 meeting. "How can you not do Anacortes and Shaw and spend $20 million on passenger only service and $3.5 million on the Sidney run? I am astonished Morris didn’t take time to talk to the FAC or you (BOCC)."

In an interview April 16, 2003 Morris said it is a "two-way street" "Darcie doesn’t talk to me before she speaks to the legislature." He noted the FAC is an advisory committee for the commissioners. It would be appropriate for them to speak to the BOCC which could contact legislators.

Distler encouraged the commissioners to contact Senators Mary Margaret Haugen and Harriet Spanel. The Senate has not approved its transportation bill yet. Once it does, the legislators will tackle a compromise bill.

Morris noted the house bill is is the first bill in the last 13 years that includes new revenue. The revenue would come from a 4 -cent per gallon gas tax increase.

PRESS RELEASE
Morris backs bill to provide year-round service to Sidney

posted 03/19/03
OLYMPIA - A bipartisan team of Transportation Committee members presented a budget plan Friday to stop the ferry funding crisis and keep passenger-only ferries running between Vashon Island and Seattle.

• Saving passenger-only ferry service between Vashon and Seattle, adding passenger-only service at Kingston and Southworth during commute times and eliminating passenger-only ferry service between Bremerton and Seattle.
  
  
• Ordering the state ferry system to increase the portion of passenger-only operating costs paid by fares, likely through a combination of higher fares and lower operating costs.
  
  
• Maintaining all existing auto-ferry routes, including the Anacortes-Sidney run year-round.
  
  
• Endorsing most of the ferry system's 5 + 5 + 5 business plan (reducing costs by 5 percent, increasing fares by 5 percent, and generating 5 percent in new revenues). This funds two new auto ferries and one new passenger-only ferry -- without a tax increase.
  
  
• Seeking $234 million in new capital funding for two additional auto ferries, one additional passenger-only vessel, terminal preservation expenditures and terminal improvements.

"This plan is about serving the citizens who depend upon ferries," said Rep. Jeff Morris (D-Anacortes). "It's a creative solution to save communities from being stranded and isolated."

The fate of the ferry system, particularly passenger-only ferries, has been the subject of much consternation in Olympia and among ferry commuters lately. Two members representing communities who depend on passenger-only ferries were quite pleased by the plan presented Friday.

"Thank God they made the right choice," said Rep. Joe McDermott (D- Seattle). "The people on Vashon are being heard and should be pleased."

"I'm happy," added Rep. Eileen Cody (D-Seattle). "Now we just need to pass a revenue package so we can pay for this."

The ferry workgroup is a bipartisan team of House members including Morris, Rockefeller, Rep. Mike Cooper (D-Edmonds), Rep. Bev Woods (R-Poulsbo), Rep. Barbara Bailey (R-Oak Harbor), and Rep. Lynn Schindler (R-Spokane Valley). The group has met 15 times in six weeks to draft the plan.

The House Transportation Committee also passed three bills Friday, March 14, 2003 that augment their ferry plan:

House Bill 1853 (sponsored by Rep. Rockefeller): Allows Kitsap Transit and other public transportation areas to offer passenger-only ferries with local- option taxes.

House Bill 2097 (sponsored by Rep. Murray): Grants the ferry system more flexibility to raise revenues through selling advertising, souvenirs, chartering ferry boats, and other revenue-generating ideas.

House Bill 1388 (sponsored by Rep. Woods): Eliminates the requirement that ferry operators obtain a waiver to run ferry service within ten miles of an existing ferry route.

LETTER FROM BOB DISTLER RE BILL

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