SSA approves rate hikes in new year

0
A change in the seasonal ferry schedule resulted in complaints about long standby lines in Vineyard Haven this week. — Photo by Steve Myrick

The Steamship Authority (SSA) board approved a slate of rate hikes at their regular monthly meeting held in Oak Bluffs Tuesday. Beginning January 1, the discounted vehicle excursion fare for Island residents, parking rates at Falmouth lots, and passenger fares for all travelers will increase.

The members also got an earful from residents dissatisfied with the cleanliness and condition of SSA ferries and terminals and heard complaints about boat scheduling that resulted in long standby lines and reduced availability for vehicle passage after Columbus Day.

Fuel costs raised

The board voted unanimously to approve rate hikes, which SSA general manager Wayne Lamson said are needed to cover increased operating costs projected for 2015, including fuel costs, vessel maintenance, employee salaries, health care benefits, and pension benefits.

In total, management needs $1,900,000 from anticipated rate increases to meet its projected net operating income next year of around $3,619,000. Based on a formula under which each route pays for its cost of service, $1,400,000 would need to come from the Vineyard side of the ledger and $500,000 from Nantucket.

Standard passenger fares on Martha’s Vineyard routes will increase from $8 to $8.50; senior and child fares will increase from $4 to $4.50. A book of 10 adult passenger fares will rise from $65 to $69. The discounted roundtrip excursion vehicle rate for Island residents will increase by $2, from $61 to $63 off-season and $92 to $94 in-season. The off-season parking rate for Falmouth satellite lots will remain at $10, but will increase to $13 for the shoulder seasons, and from $13 to $15 in-season.

Several members questioned the budget projection for fuel costs, given the current downward trend in wholesale oil prices.

“The market is correcting right now,” SSA treasurer Robert Davis said. “Talking with our consultant, he is still feeling the $90 range is a good range to be targeting.”

In public comment, Oak Bluffs businessman Todd Rebello, a former selectman, noted that the current price of oil is $82 per barrel. He said most business are enjoying unexpected savings this year, and projecting lower costs next year.

“I do believe there is a little fluff in the potential fuel budget that could be significant,” said Mr. Rebello. “You may see a million dollars plus [below projections]. The projection won’t come back to the ratepayers. You’ll find another place in the budget to plug a hole.”

Marc Hanover, SSA Vineyard member, said he thought the budget was lean, but he expressed concern at cost projections that may require more rate hikes in 2016. “I am terrified that you’re going to be looking for another $3.6 million next year,” Mr. Hanover, an Oak Bluffs businessman said. “You understand my concern. I’d like to be able to continue living on Martha’s Vineyard.”

Mr. Lamson said the SSA’s five-year plan projects cost increases that average less than 2 percent per year, in order to finance a new hybrid freight/passenger boat, and to build the new terminal in Woods Hole.

Service issues

The public also had concerns. During the period of the meeting reserved for public comment, Oak Bluffs selectman Greg Coogan said he and other public officials received many complaints from residents forced to wait in standby lines for six hours or more, following a change in the seasonal schedule after Columbus Day when a freight boat was taken out of service.

“I did hear from a lot of people who spent all morning, or were turned away and told to come back,” Mr. Coogan said.

Mr. Hanover said he also received numerous complaints. “We need to extend the schedule, or get some extra freight boats,” Mr. Hanover said. “It’s crazy. It’s very difficult to get off.”

Mr. Lamson said his staff was aware of the issues, and will evaluate the fall schedule to come up with a better solution.

Mr. Coogan said he has also fielded complaints from merchants and residents who questioned the number of Oak Bluffs boats shifted to Vineyard Haven because of weather conditions this fall.

“It does make an impact when they don’t run, not only for the merchants but also for the people rushing to try to catch a boat,” Mr. Coogan said. “Some days it seems like they ought to run. I’m sure there are issues the boat captains and the people working on the dock think are important, but sometimes it doesn’t seem fair.”

There were several complaints about the cleanliness of bathrooms on boats and in the terminals, as well as the general level of passenger services.

“I have been noticing the condition of the ferries that I have been on, both the Island Home and the freight boat, are really dirty,” said Jennifer Parkinson of Oak Bluffs. “I’m very disappointed. When we’re paying millions of dollars for personnel, I never see them. Where are they? We’re charging people more money, and giving them less.”

Sea change

In other business Tuesday, the board renewed the licensing agreement under which the Sea Streak fast passenger ferry operates between New Bedford and Martha’s Vineyard in the summer months with one significant change. In the past, Sea Streak made three daily trips to and from Oak Bluffs, and two daily trips to and from Vineyard Haven. Next summer, all trips will arrive and depart from Oak Bluffs, except for days when weather forces the boat to divert to Vineyard Haven.

The board also approved a new contract for the Island Queen, which carries passengers from Falmouth to Oak Bluffs. The new contract will allow the Island Queen to begin a full schedule of trips on June 12, 2015, one week earlier than previously allowed under the old contract.

In other action, the board approved refinancing of bonds to take advantage of lower interest rates. Mr. Davis estimates the refinancing will save the SSA $2.3 million over a seven year period.

The board also approved the purchase and construction of a modular building for the Palmer Avenue parking lot, and another for the Landers Road parking lot. The buildings will house rest room facilities, office space, and an employee break room. The SSA intends to rent space and provide parking spots for a rental car franchise in the new building at the Palmer Avenue lot.