This was originally posted to: Guemes Island Ferry Committee

Ferry Committee Meets With Public Works, November 24 2014


Minutes of Meeting
Ferry Committee (FC)/Public Works (PW) November 24, 2014
Skagit Room, 1800 Continental Place
Mount Vernon, WA 98221

Attendees:  
Dan Berentson, Director PW
Jim Mickel, Controller/Division Manager
Paul A. Randall-Grutter P.E.
Maria Henry, Accountant
Rachel Rowe, Captain and Ferry Manager
Carl “Bud” Ullman
Anne Casperson
Sally Brigham-Stapp
Allen Bush
Steve Orsini
Edith Walden

1. Introductions.  All parties at the table took a few moments to not only introduce themselves but to give a bit of their background because there were some new participants.  

2.  Captain Rowe explained that including this session, all FC/PW meetings will be recorded by the County and that there will be a set of action items set by the end of each meeting.  Captain Rowe will generate the minutes and the action items.

3.  Captain Rowe then explained that she is working on two reports that will be presented in draft form to the Board of County Commissioners on December 16, 2014.  
    A.  Draft Ferry Operations Status Report
    B.  Draft 14 Year Capital Improvement Plan

The Ferry Committee was invited to attend this presentation.  It is a public meeting so anyone can attend.

PW will also be updating the Skagit County Comprehensive Plant Transportation section with current information on the Guemes Ferry.

In completing the Draft Ferry Operations Status Report a new approach will be taken to the Work Plan section as the items listed have been carried forward with little resolution.  

4.  Captain Rowe commented on the most recent haul out of the ferry explaining what had been accomplished and noting the requirement by the US Coast Guard for an immediate update to seawater exposed piping systems (fire suppression) on the vessel that mandated immediate repair and added ten days to the haul out schedule.  This also included a requirement of the replacement of certain plate in the hull nearing 25% wastage; for financial and planning reasons this work was postponed until 2015 with the Coast Guard’s consent.  This replacement involved the plate that was thinner than specified when the vessel was delivered in 1978.  

The Coast Guard also noted certain deficiencies in meeting required safety standards in the training,  and the need to update safety sections in the procedure manual.  The crew will be executing some 4 drills 18 times a quarter several of which will be accomplished during operating hours and apparent to passengers.  These drills may affect, in a minor way, the sailing schedule.  The safety protocol will be updated to Coast Guard requirements.

Captain Rowe detailed major work items for next year’s haul out of the M/V Guemes.  Included will be replacement of one engine with a rebuilt.  The other engine will be replaced with a new engine, noting that the cost of a rebuild was approaching that of a new engine.  The outdrives were inspected during this year’s outage and deemed to be in good shape.  Rowe stated that while the gears need to be specially cut for the out-drives, all other components are available from Rolls Royce.  The outdrives then are not scheduled for replacement or rebuild for the next outage.  Rowe has a set of spare gears on the shelf for these outdrives.  Steve Orsini commented that PW should offer in their bid the opportunity for yards to schedule M/V Guemes haul outs for more than one year as a method to schedule yard space and reduce cost.

5.  Public Works and Captain Rowe will meet Whatcom County ferry officials regarding what procedures may be standardized between the two operations.  

6.  Captain Rowe has begun a process, and let a contract to Elliott Bay Design Group, to investigate what modifications would be necessary so that the Public Works could lease the ferry M/V Trek during outages of the M/V Guemes.  Likely an extension will have to be made to the bow of the Trek to make it match the current slip and bridge deck arrangement of the Guemes Ferry operation.  One advantage in leasing the Trek is that it would be capable of carrying cars to and from Guemes that would allow some car and driver income during haul outs.  At this point, leasing the Trek is only in the study phase.  Further, the owner of the Trek may not be willing to make the modifications needed to allow the Trek to fit the Guemes docks.  The potential lease of the Trek will undergo a cost benefit analysis.  

7.  PW continues as always to seek funding for a new ferry along with finding grants and loans to accomplish capital improvement plans for the Ferry.  PW stated that this is an ongoing function but that federal earmarks for major capital projects are a thing of the past.  

8.  Dan Berentson reported conversations held recently at a county officials meeting with a commissioner for Wahkiakum County.  Wahkiakum will launch a new 23 car ferry next February, 2015.  The vessel is currently under construction at the Nichols Brothers Yard, Freeland, Washington.  Dan set one action item, at the end of the meeting, instructing staff to visit the Nichols Yard and to continue discussion with the Wahkiakum officials involved with the funding and construction of their new vessel.  He noted that the total contract for the new vessel and new docks came in at about $6.1million.  

9.  The FC was then invited to present the items on their agenda in the remaining 45 minutes of the meeting.

    A.  The FC suggested another option not given in the EBDG report but clarified that this was a proposal not a hybrid vessel.  The proposal is to repower and refurbish the Guemes but not extend the hull.  This proposal is designed to minimize unplanned outages by repowering with completely new engines and outdrives, upgrade all steering and electronic systems, and ensuring all plate and piping systems and structures are in like new condition.  The FC clarified that this is a capital project, not a maintenance project.  The estimated cost, very rough, by the FC is $2.2 million.  A refurbished vessel should be good for 10 years minimum and will allow for a greater resale value of the vessel while the County continues to seek funding for a new vessel.

    B.  The FC concurred that a fact-finding mission to understand the planning, funding and construction of the new Wahkiakum County vessel is a valuable exercise.  A member of the FC will be available for a trip to the Nichols Brothers Yard if the County undertakes that trip.

    C.  The FC asked about the status of the plan to modify the current fare target revenue methodology.  While the process is currently on hold, due to other demands on staff time, the intent is to review and possibly change the current methodology.  Steve Orsini commented that the current methodology has proven to work in that the target has been met or exceeded since the last fare increase of 14% in 2011.  The problem is that the operating and maintenance costs for the vessel are now about $2.0 million per year up from about $750,000 about six years ago.  Mention was made by Jim Mikel that the O & M for the Guemes may reach $2.5 million next year.  (This comment again engenders the question about what costs will be put into the O&M side of the ledger as contrasted with Capital expense.  For example, will the new engine to be purchased for the next haul out be considered by the County as a capital or maintenance item?)
    
10.  The meeting came to a close with clarification that Rachel Beck will produce the  County minutes of meeting and the action items.  Dan Berentson wanted to produce action items by the end of this meeting.  He requested two action items for his staff:
    1.  A fact-finding mission on the new Wahkiakum ferry.
    2.  Running of the current revenue target methodology to determine what fare     increase might come from it.

11.  Items on the Ferry Committee’s agenda not reached in the discussion due to time constraints include:
    III.  “Capacity”: The Skagit County Transportation System Plan, 2003
    VI.  What can be done to control O&M expense increases?
    VII.  The GIFC is getting complaints about late sailings.  This needs discussion.