Borough makes first ferry payment

PALMER — Bills for the Mat-Su Borough’s M/V Susitna are beginning to come due.

Although the borough doesn’t officially assume financial responsibility of the vessel until April 1, assembly members voted 6-1 this month to approve $93,941.26 to cover costs to guard, maintain and provide a two-member crew for the vessel.

That will get the assembly to May 31.

“This is good for the interim two months while the Navy and ourselves are working out an agreement,” Assemblyman Jim Colver said. “I think we need a plan A, B and C for when three months run out.”

The Susitna is a prototype of a fast-moving shore-landing craft for the U.S. Navy. Though designed with tanks in mind, the borough took it on with plans to start a ferry system shuttling cars and drivers between Point MacKenzie and Anchorage. But so far, neither Cook Inlet shore has a ferry dock and the borough lacks funding to build one, let alone two.

Borough Manager John Moosey took over at the borough after it was already apparent that the borough was going to take delivery of a ship for which it had no route.

“I think I have spent more time on this issue than I have on any other issue at the borough,” Moosey said.

He’s working on a solution, but the borough is in a difficult spot, he said. Part of the deal with the Navy requires the ship be in use so the Navy can collect data from it.

So pulling it out of the water and parking it in some secured yard isn’t an option. The borough also has spent $20 million in federal grants that would have to be returned to the federal government if no ferry system materializes.

“Given those two items, we have been working diligently the past 10 months trying to find opportunities for that and we have been shaking every tree,” Moosey said.

There is a possibility the Navy would hold onto the ship and use it to patrol and protect Alaska waters. A couple of private companies also have expressed interested, one with ties to Shell Oil, the other with interest in mapping port areas.

“Simply by saying we’re not taking it doesn’t relieve us of our obligations,” Moosey said. “I wish I could tell you we could allow somebody to keep the boat and it would not cost us anything to do that, but that is not the case.”

Assemblyman Ron Arvin voiced his displeasure on spending money on the ferry.

“This issue has been languishing for years and we have had substantive and pointed discussion about what is the resolution of this albatross that the residents of the borough have been saddled with,” Arvin said. “I want to know what it is, because I’m not going to support paying $50,000 a month to park this thing in Southeast Alaska.”

Contact reporter Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.