3 more months of ferry fees paid

By ANDREW WELLNER

Frontiersman.com

PALMER — With little fanfare, the Mat-Su Borough Assembly approved funds to pay for dock fees and insurance to store the ferry M/V Susitna in Ketchikan through March.

The resolution passed Tuesday authorized $54,000 — $18,000 a month for January, February and March — to pay fees related to insuring and storing the contentious ferry.

“This estimated amount includes moorage and electricity in Ward Cove, Ketchikan, line handler, chief engineer, fuel, crew cost, advertising and minor maintenance incidentals,” reads the ordinance authorizing the payment. The money also covers the ship’s insurance.

Assemblyman Jim Sykes asked about the payment, noting that the assembly had reduced the cost from $70,000 a month.

“It’s only $18,000 a month and I appreciate that we’ve lowered the costs, but they’re still costs,” he said. “Is there any chance of getting out of the rent?”

Borough Manager John Moosey said the borough is continuing its search for a buyer for the vessel or a partner that could operate it as a ferry between Point MacKenzie and Anchorage. The borough is also looking for ways to reduce its liability, he said.

Though the vessel — built as a naval prototype but retrofitted for ferry work — was built by the U.S. Navy with no cost to the borough, the Federal Transit Authority paid millions to do the retrofitting and construct a ferry terminal at Point MacKenzie and will want some of that money back if the borough doesn’t start a ferry service. Latest estimates of what the Federal Transit Authority would want range from $4 million to $12 million depending on how the borough disposes of the vessel.

“We’re just going to have to make some tough decisions about the ferry,” Moosey told the assembly.

The borough reported it has spent $1.17 million to keep the ship docked and insured as of August 2013. The next month the borough reduced its monthly costs to $18,000. So the total spent has increased by $72,000 since then, for a total expenditure of around $1.24 million.

Assemblyman Steve Colligan proposed a brief closed-door session to review the borough’s options.

After the ordinance was voted on — it passed 6-1 with Assemblyman Ron Arvin, who consistently votes against authorizing ferry payments, casting the lone vote in opposition — Assemblyman Vern Halter said the borough should take a look at King Cove.

Just before Christmas, the U.S. Department of the Interior ruled against a proposed road between King Cove and Cold Bay. Residents there had described the road as a necessary route for King Cove residents to access Cold Bay’s airport for medical trips. The road, though, would run through the Izembek National Wildlife Refuge and thus the feds rejected it.

“If it’s designed the way they said it was, that boat would be ideal to run between King Cove and Cold Bay,” Halter said.

Borough Mayor Larry DeVilbiss added that the option had been explored before, but might be something to look into again in light of the ruling.

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