Ferry repairs delayed

PALMER — After fiercely debating the future of the troubled M/V Susitna, the Mat-Su Borough Assembly voted 5-2 on Tuesday to continue debate for another week.

Assembly members will consider about $2 million in unplanned expenditures to fix the ferry’s four engines at a planned joint meeting of the assembly and school board on March 8. Borough officials don’t yet have a copy of a proposed 90-day extension on the contract to sell the vessel to the Phillipine Red Cross for $1.75 million, said borough manager John Moosey. The total cost of needed repairs is about $3 million.

The general argument Tuesday was whether the written agreement with the buyer should be in hand before the assembly approves more money to fix the ferry. Several assembly members suggested litigation against Lloyd’s of London, the borough’s insurance company, may be necessary to receive money to cover the cost of repairing the ferry’s rain-damaged engines.

Assemblyman Dan Mayfield joined Jim Sykes in voting against postponement. Mayfield has repeatedly urged the assembly should appropriate the money as a show of good faith to the insurance company, which he says would make it easier for Lloyd’s of London to justify a large reimbursement. Without action, the insurance company could presume inaction had damaged the engines further, Mayfield said.

“We need decisive leadership,” he said.

Sykes said he voted against postponing the measure because it would end debate, and assembly members didn’t yet have a full picture of the options.

Borough figures show fixing the boat could net the borough as much as $1.2 million (or cost as much as $34,000). Other options include scrapping the boat, which could cost the borough about $530,000, or selling it as-is, which would cost the borough about $520,000.

The Susitna’s captain, J.P. Stormont, testified that without an immediate fix, Foss Maritime, the shipyard where the ship is currently moored, couldn’t guarantee a timely haul-out date.

The most vocal opponent to moving forward without a written sale agreement was assemblyman Steve Colligan. Colligan at one point banged his fist on the podium during debate. The sense of urgency facing the assembly was created by the decision to move the boat to Seattle in the first place, Colligan said.

“I am just livid about this,” he said. “This is ridiculous. This body created this problem. So at this point, I’m asking for this to be postponed.”

Moosey used his discretionary authority Wednesday to authorize about $15,000 to disconnect the ferry’s engines, thus reserving the current haul-out date, and essentially buying time to obtain a written contract amendment from the Philippine Red Cross.

Moorage fees for the boat have also more than doubled now that the boat has arrived in Seattle, port Director Marc Van Dongen testified.

Contact reporter Brian O’Connor at brian.oconnor@frontiersman.com