- the native canadian

Brian Sharp
Staff writer

(August 14, 2005) — Ridership on the high-speed ferry between Rochester and Toronto is falling short of projections, and officials said they will dip deeper into reserves than planned. (But...but... last weekend... sell-out... '30% increase'.... 'ridership increasing'.... 'happy happy'...)

By early fall, however, possibly starting in September, the ferry should begin exceeding ridership goals, said Don Cormier, vice president of operations and safety for manager Bay Ferries Great Lakes. That would mean higher revenue. (Yes, it would. IF it happens. But it's not going to happen.)

What's at stake

While a second attempt at fast ferry service between Rochester and Toronto is gaining ground, it has yet to meet or exceed targets. That soon might change, which could be the first step toward becoming what officials hope: an economic engine for the city.

Cormier said the ferry, forced to ramp up in peak season, missed the previously released July target of 74,827 crossings and likely will miss August's goal of 78,684. (Missed ridership goals for the first two months? At the peak season? With sales pitches and discounts? With two days of sell-out cruises? Do we see a pattern emerging?)

He won't say by how much or provide any midpoint ridership numbers, (And he also didn't say "We don't know the actual numbers", did he? Cormier knows the score. He's just being coy and evasive.) saying those details will be released in the first quarterly report, due in late September or early October. According to the operating budget, the September ridership target drops to 40,499 with the start of school.

Cormier points to increasing ridership — estimated (read: Guessed) as an even split between Canadian and American bookings — and repeat travelers as the reason for his optimism. Whether it will be enough to overcome the opening months' shortfalls is unclear. (Spin 101 for "It's really doubtful".) Ridership in July and August accounts for more than half of the 247,000 crossings projected in the operating budget for the ferry's partial first season.

"We are definitely moving in the right direction in terms of traffic," Cormier said, noting that numbers climbed 30 percent from the beginning of July to the end of the month, (Goood Lord. Willya give it a REST already?) for example, and the ship had its first sold-out trips last weekend. The previous operator, Canadian American Transportation Systems, never had a sold-out trip in 2004 before abruptly halting service, he said.

"It will take some time for the credibility and consumer confidence to be restored," Cormier said, referring to the failed venture under CATS. "I think we will be better in the fall."

Questions and answers

Who owns and operates the ferry?
The Rochester Ferry Co., a separate legal entity established by city ordinance. Rochester Ferry then hired Bay Ferries, a private company, as the manager. Startup money, including the $32 million to buy the ship, came from a loan guaranteed or backed by the city.
Rochester Ferry also is the ferry crew's employer, but their pay and benefits do not come from the city.

Who is responsible for the loan?
Rochester Ferry, but ultimately the city. The loan must be repaid over 15 years with revenue from the ferry. If the operation fails, Rochester Ferry could sell the ship to repay the loan. Any money left over at the end of the loan period or the partnership with Bay Ferries, goes to the city.

What information about the ferry is public?
Information provided to Rochester Ferry Co. or the city is public, though New York open records law contains some exemptions. The city's legal staff has not yet resolved whether certain information generally made public about city operations — such as employee salaries and job descriptions — will be released.

The city is reviewing a Democrat and Chronicle request for certain minutes of meetings of Rochester Ferry's board. Ridership and budget figures at this point will be released only in quarterly reports; the first is due in late September or early October.

The ferry operated less than three months last summer under CATS. Earlier this year, the city created the Rochester Ferry Co., appointed its board and guaranteed a loan for the organization to buy the ship and hire Bay Ferries as the manager. Ferry service aboard the 774-passenger ship resumed June 30.

"The intent is, whether we legally have to or not, to be as public about this as we can, without impacting ... (the) business we're running here," said Linda Kingsley, corporation counsel for the city, who also is legal adviser to Rochester Ferry Co. But like Cormier, the city and ferry board are not releasing current statistics on budget or ridership.

So for now, the public message remains: The ship is running on time, steadily building public confidence and increasing ticket sales.

"I haven't seen any reason to be alarmed yet," said Mayor William A. Johnson Jr., who is staunchly supportive but hasn't seen numbers either. "People need to be patient." (We have been. For over four years. We still haven't seen where this project has turned a profit no matter whose name is on the boat registration.)

Restart delayed

Canadian American Transportation Systems abruptly shut down ferry service last September after less than three months, blaming $1.7 million in debt. Rochester Ferry Co. bought the ship at a federal foreclosure auction in February for $32 million. Startup money came from a $40 million loan, to be repaid with ferry revenue. Officials originally pushed to resume service in May but determined there was too much work to be done and set a mid-June target instead. Engine repairs then caused delays and more expense. When the ship returned to service June 30, a $5.3 million reserve or cushion remained from the loan.

"We had planned to use some of the reserves for the first two or three months," said City Councilman Benjamin Douglas, president of the ferry board. "The question is, 'Did we use more than we planned?' The answer is yes."

Cormier said expenses are at or below budget. But he and others won't comment on revenue. (Gee... where has THAT distinction been made?? Oh yeah:HERE.) Officials expected the ship to finish its first year $725,000 in the red. (Makes sense. Oh Bill? Bill? How long should we wait before we get 'alarmed' about the impending sea of red ink?)

That deficit "will be higher, but we don't know yet how much higher," said Ed Doherty, the city's commissioner for environmental services. The quarterly report, he said, will provide the first meaningful data to possibly adjust expectations. (Oh. My. God. 'Adjust the expectations'? See below on THIS one.) Some of those targets are tied to performance measures that must be met by Bay Ferries.

Jim and Margaret Clarke, both 70, are perfectly content to wait.

The Greece residents and Toronto natives are repeat ferry riders. He has taken three round trips in the two seasons. She is completing her fifth today and already has tickets for a sixth in the fall.

"This Cormier and these guys, they've been in the business for 20 years, so if they have their reasons for not publicizing it (ridership and budget details), fine with me," Jim Clarke said. "I don't care. (Yup. Typical Rochester area attitude. "I'm an idiot... these guys are the experts... I won't risk a brain cramp by actually using my atrophying intelligence." Wouldn't expect anything else from a local.)

"It's just a super way to do it (travel) and 'leave the driving to us' kind of thing. I can't praise it enough. It's fantastic, I'm telling you."

Margaret Clarke echoes that sentiment and worries that talk of lower ridership than projected — she said her Wednesday trip to Toronto was less than half full — might drive people away. (The other piece of the puzzle. "Let's not talk about it. Let's think happy thoughts. Let's pretend. Let's ignore reality which might upset us. Let's act like Rochesterians.")

Numbers hard to come by

Douglas said Bay Ferries has made verbal presentations on budget and ridership to the ferry board, most often to its executive committee, which includes him and three other board members. Douglas said he did not write down the figures and therefore could not provide details. (Yes, taking notes is SOOOO demanding. In this case, saying, "My little mind can't remember" is better than saying the reality.)

Executive committee members William Ansbrow, the city budget director, and Karen Noble Hanson, director of finance at the Episcopal Diocese of Rochester, said Douglas is supposed to be the spokesman and referred questions to him. The third member, Charles Ballentine, a Kodak executive, did not return a phone message.

The Democrat and Chronicle filed an open records request with the city seeking ridership figures. But Kingsley, the city's lawyer, said since Bay Ferries has yet to submit a report, there is nothing to release. The open records law does not cover conversations. The newspaper followed up with a request for the minutes of executive committee meetings, which Kingsley was reviewing last week.

Robert Freeman, executive director for New York's Committee on Open Government, said if Cormier or whoever presented figures to board members used notes, their notes are public record because they were prepared for a public agency.

The "public agency" label appears to fit Rochester Ferry Co., he said, given that its board is city-appointed and mostly made up of elected officials or city employees. Kingsley is less sure but said the city code establishing the board states it must abide by open records law.

Among other uncertainties is whether employee salaries are public information, she said, and what business information might be proprietary and therefore exempt under open records law. (Secrets? Why? This isn't some matter of National Defense here, so what's the big deal behind releasing employee salaries? Unless there's something to hide, there's no reason for a secret. Do 'we' have something we want to hide from the public??)

Worried about perception

City officials express concern that releasing an early snapshot now on ridership and budget performance could have a chilling effect on an already-skeptical public, and nobody would be listening when the numbers got better. As Douglas put it, "You could potentially start a buzz that creates a concern that is not real." (And in a community already half asleep at the wheel 50% of the time, that's certainly a possibility. I ignore the buzz and go for the facts. Morons grab onto the buzz and use THAT as 'facts'. Ask yourself this: "Am I a moron?" Ben Douglas thinks so.)

Kim Bierworth, a 40-year-old mother of two in Charlotte, loves the ferry and marvels at its promptness. She understands the officials' concerns but said the public should be told the full story of how the ship is performing so far.

"I thought it was interesting that when it sold out (last weekend), everyone knew that," she said. "The numbers make me nervous — what they're going to do come October and November, just whether they'll get the people they need."

From her home along Lake Ontario, Bierworth watches the ferry come and go each day. She took the ship last year for a day trip with her family and her sister's family. On Wednesday, she bought tickets for a return trip, saying she has to travel now because, with boys ages 12 and 15, getting away once school and football season starts will be nearly impossible. (You bet Kim! We all have our priorities, don't we? And it's those sort of priorities which spell doom for the ferry.)

Lisa Elkind, director of sales and marketing for Bay Ferries, said the focus on family travel and specials will turn to corporate travel and seminars as well as sales of travel packages that combine ferry trips with bus tours, hotel stays and coupon books to museums or stores.

Elkind said the late start crippled initial marketing and sales efforts because dates for major trade shows had passed and because the ferry was left out of travel industry directories, which are prepared a year in advance and sent to wholesalers and tour groups.

But the combined staff of seven, working with outside marketing and public relations firms, has done "a tremendous amount of work," she said, from radio and print to the Internet, and developing partnerships with travel agents. The $650,000 annual budget for her office also limited what could be done, she said. Brochures were distributed in a 90-mile radius of Rochester and Toronto but next year, she said, her office hopes to reach out farther.

"I think we will catch up next year," Elkind said about marketing efforts. (That is, if there IS a 'next year'. Presumptuous, aren't we?)

In the meantime, Bay Ferries will gradually cut back the ship's travel schedule as planned starting next month, winding down the season.

The ferry will stop running and be drydocked in January and February to ready for next year. Bay Ferries plans to start up again for its first full season in March. (THAT wasn't in the Master Plan, was it? Ferries are like commercial trucking; you don't make money sitting still.)

"Nobody is comfortable," Douglas said of what lies ahead. "Nobody has been comfortable, because everyone understands this is a venture that has to be watched, that has to be monitored, that has to be marketed. ... We are still in a startup mode. Nobody is relaxing." (Odds are, he had to get something right... even if by chance.)

BDSHARP@DemocratandChronicle.com