December 20, 2007

Greetings Islanders,

Attached is the final draft of a new Fare Recovery Resolution that will be presented to the Board of County Commissioners at a public hearing on Dec. 24, 2007 at 8:30 AM at 1800 Continental Pl. in Mt. Vernon.

The Ferry Committee and Public Works have been working on this new resolution as a result of the need by Skagit County to address a recent State Auditor “finding” regarding the lack of clarity in the way that the last fare increase was calculated. The BOCC directed Public Works to prepare a resolution that was similar to Whatcom and Pierce Counties. The result is a new model that includes all the operational costs, excluding all capital expenditures, for the ferry operation that are allowed in the annual Deficit Reimbursement Report. This is an annual report that each of the three counties that operates a ferry prepares for the State in order to receive its annual share of $500,000. The amount of money that has been recently received annually by Skagit County has been in the range of $250,000 but last year dropped to about $150,000.

While previous fare recovery resolutions were limited to 100% of the operational costs of the crews wages and benefits, fuel and insurance, the new model includes other expenditures in the operation such as dock repair and ferry maintenance, but the new percentage will be 65% after credits for the revenue received from the State for both Deficit Reimbursement and the Motor Vehicle fuel tax. We feel that we have arrived at a similar fare target amount by using a different approach. Note that the Resolution states there will be no increase in the fare target for the year 2008. Also in this new resolution is cost control language and we have a commitment by Public Works to reduce crew size when possible. Beginning in January, a three-person crew will be in place on the weekends. Further use of a three-person crew is a goal but no timetable is now in place.

We had hoped to have a public meeting before this was presented to the BOCC, however we have no choice now but to use modern technology and hope that this will allow interested people to review the resolution. If you have questions please contact a Ferry Committee member. If you wish to make a comment regarding this resolution you are welcome to attend the hearing on December 24, at 8:30 AM.

Sincerely,

Guemes Ferry Committee