Unapproved Minutes VMICC TLC Committee Meeting Wednesday, January 24, 2001, 7:30 PM Chautauqua School Willem Maas, Chair of the VMICC Transportation Lifeline Committee and the VMICC Transportation Committee, opened the meeting by introducing several guests from the Washington State Ferry System - Ray Deardorff, Pat Patterson and Michael Hodgins as well as David Freiboth, President of the Inland Boatman¹s Union. Also present were Bruce Eckland, from Dow Constantine¹s office and Doug Johnson from Metro Transit. Willem then provided a status report to the Committee on the current ferry situation, and particularly the passenger only situation. He announced that there will be a public meeting on February 7th, and the result of that meeting, and several others like it, will be incorporated into recommendations to the Transportation Commission on March 28th. He stated that nothing is final yet, and that the purpose of this meeting and the one next week is to formulate the Island¹s position, work with other ferry dependent communities, and take a preferred solution to Olympia on February 22nd and to the Legislature. A year ago, we were talking about saving the passenger only boat, and that is still true today. The State legislature understands that car ferries are part of the highway system but passenger only boats are part of the mass transit system, and how they work, what¹s fair, and what the rules are is yet to be determined. Pertinent aspects of the study by the ferry committee included: … The ferry legislative taskforce addressed efficiency, age, waste, duplication and other issues, but it is still not certain the passenger only boat will survive. … The POF service began in l990, and charged the same fare as a passenger on the car ferry. There was no recognition of the true costs of the service, and as a consequence, fare box revenues have accounted for only between 10% and 18% of operating costs. … Because of all the tax initiatives, especially 601 and 695, the state has lost significant revenues, which subsidized ferry service in the past. … Without this general tax subsidy, there has been a recognition that users will have to pay for services to cover operating cost to the extent feasible and ensure that the Legislature steps up to providing for over $275 million in capital costs for boats and terminals over the next biennium. … The State¹s GOAL is that within 6 years fare box returns will pay for 80% of operating costs and in 20 years, they will pay 100%; with fare increases phased in over time. This is the plan for the car ferry increases, and it is still very much a possibility for the passenger only ferries. … There are 1.2 million people in the ferry dependent communities. If there is to be a fee for service, then there must be a dependable and predictable source of funding from the State. Dave Freibboth from the Inland Boatman¹s union spoke for a few minutes. He stated that his membership recognizes the financial crisis the State is experiencing, and is willing to negotiate some efficiencies, particularly relative to part time shifts. Family structures have changed over recent years, and part time schedules are not as threatening to stable family incomes as they were in the past. He came up through the union ranks, and spoke highly of the safety and convenience of ferry service, while acknowledging that there are some problems. Freiboth said his membership shared our goals of fixing the ferry system, and stressed that privatization is not the answer; especially since it would eliminate all involvement of citizens and riders. Attendees at the meeting then commented and asked the following general concerns: … The recommended increase in the fare is over 2 times the current fare, effective May of this year. This isn¹t justified, and should not be imposed. Buses are subsidized to a far greater extent, and this is our "bus". If justified, it should at least be phased in, as recommended for the car ferries. People do not pay to drive on highways or bridges, so this isn¹t fair and puts far more of the burden of the lost revenues on ferry dependent communities.. … When operating expenses for the car ferry are compared to the passenger only ferry, it would seem reasonable that costs for the passenger only ferry should be far less; since the operational costs associated with transporting people vs. cars; and the terminals and staffing differences for PO boats are so much less. This would be especially true if other factors, such as environmental, were factored in. The problem is that the State has assumed the costs for capital costs for the car ferry, but has not done that for the passenger only ferry. Revenues from the fare box have covered 60% of operating costs; with 40% from gas and mvet monies. MVET funded 75% of the capital costs; but that money was eliminated by I 695 and must be replaced on an ongoing basis. The legislature used cash reserves to replace it for the short term. … The relative cost of transporting cars versus transporting a person would suggest that it would be cheaper all the way around to transport people. Why can¹t this be reflected in fares on the POF? … Tripling the POF fare is "insane"Šshows that the Ferry system has no commitment to the passenger only boat. In fact, the perception is that the Ferry System would rather the POF boats disappear, because the ferry system would have more traffic to pay for car ferry operating costs. Ferry spokespeople reassured the committee this is not so, but several in the audience voiced similar skepticism because elimination of the POF boat could reduce capital and operating costs for the ferry system overall. … Why aren¹t there tolls for roads? The East coast still has them. If there are user fees, then all citizens should pay them. … Why is there a recommendation to collect fares on both sides? This is not necessary. (Willem explained that this is in fact not the recommendation) … Why are there so many ticket takers on the dock? Why can¹t there by some sort of smart ticket or turnstile introduced? Why can¹t tickets be sold at commercial retail outlets, eliminating the need for sales at the dock? This is not rocket science. … What has the ferry system offered to do to cut costs? If the union is making concessions, and passengers are paying more, what is the ferry system offering to do? Ferry officials responded that 92 management positions have been eliminated, crews and trips reduced, but that any more reduction will result in a death spiral. … Acknowledging that most ferry workers are dedicated and competent, and that ferry travel is safe and efficient, what are ferry workers (rank and file) willing to do in terms of efficiencies, and what safety and state regulations are there that effect staffing and shifts? How much can be saved from staffing efficiencies? … What can be done about excess staffing on the piers? And if we are paying for premium service, when can we expect comfortable ferries that run every day (not diverted to Bremerton); a real ferry terminal in Seattle with heat, bathrooms and a coffee shop. … Is it true that the ferry system is considering adding staff now? And if so, why? … There is a credibility gap between the request for fare box increases and efficiencies. The boats are "crappy" and inefficient. This lack of credibility makes it difficult to believe numbers and promises. … Are the data on fare collection for PO and car ferries accurate? Seems that the per capita cost of moving people vs. cars would suggest it should be cheaper to move people. … What are the per capita operating costs for the car ferry?. Willem then asked for volunteers to work with the committee. The February 7th meeting is an Island wide meeting to hear concerns and formulate the Island¹s position on the ferry funding. That position will then be shared with other island communities, in an attempt to develop a common proposal to take to Olympia and the Legislature in February. Islanders who volunteered to work on the committee include: (others welcome) Sally Fox Linda Hatfield Mike Sudduth Jim and Jodie Warren Nota Lucas Kayleen Dawson Michelle Morlan (not present; but volunteered) Patty Snyder Jerry Long Cliff Goodman Kathleen Davis Rod Bordner Laura Snyder Kyle Kruger George Lewis Karen Wissing Ellen Kritzman Bob Pinter Jay Becker It was agreed that the workgroup would meet on Saturday January 27th at 9:00a.m. at the meeting room at Chautauqua School. The meeting was adjourned at 9:10 p.m.