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Sixty
These people NEVER give up.
WHAM13 News, ever the voice of all that's bright and chipper, just can't let a story pass without providing the masses with the requisite upbeat angle. Remaining positive is one thing; reporting the news slathered with sugar and honey grows tiresome but for those viewers who demand as little unpleasantness as possible, WHAM13 News is just the ticket.
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City needs $3.1M to buy out ferry contracts
(January 13, 2006) — City officials estimate they will need $3.1 million to continue existing high-speed ferry contracts, or buy them out if necessary, according to legislation before City Council. The Council is scheduled to vote Tuesday on borrowing $9.4 million from the city insurance reserve. (Doesn't 'borrowing' involve 'repaying' at some point? And where will THAT money come from?) The total is reduced slightly from Mayor Robert Duffy's initial estimation of $9.5 million. Other expenses include repaying manager Bay Ferries Great Lakes LLC, which is owed $2.5 million; warranties; payments on the $40 million borrowed to buy the ship and begin operations last year; and maintenance, personnel and insurance until the ship is sold. (However long THAT may take...) The main contracts outstanding involve
Bay Ferries and the Toronto Port Authority. Addressing City Hall employees during his weekly "roll call" ("What??") today at City Hall, Duffy said: "I do believe there's going to be somebody who is going to want to come in and bring a service to that port (the pool of eligible AND willing businesses has shrunk considerably)... we are not going to give up on that port." |
Reality starts to sink in.
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Ferry deal shows Duffy has firm hand on reins
Decision to pull plug suggests he's a
strong leader, though skeptics question his motives
But Duffy, in his 10th day in office Tuesday, made the first decisive action of his administration: He pulled the plug and plans to sell the ship to limit losses to taxpayers. The decision has been big news not only
for what it means to the city's economy, but also for what it says about
Duffy's leadership. Yet skeptics question whether the Democratic mayor sought only to make the best political move, spun it to suggest the project had run amok and relinquished a last opportunity to make the ship a success. Either way, most leaders agree on one
thing: Duffy has shown, at least so far, that he's not afraid to make hard
choices. Duffy's decision also raises other questions: If he was able to cut ties with one of the city's flagship projects, what else may be on his chopping block? How much of predecessor Mayor William A Johnson Jr.'s initiatives will remain intact? Already, there are indications he will revamp the Neighborhood Empowerment Team program, which Johnson established and which a report this week found has not met its mission of improving city streets. While he won't let on what other changes he will make, Duffy said that city services will be closely examined during his first 100 days in office. He denounced critics who, he said, had suggested, "I was going to be someone's puppet and not make my own decisions." "If something does not work well, we are going to work very hard to improve it," he said. But if it can't be fixed, "I'm not afraid to say that we are going to stop doing something." Making the choice Duffy is known as someone who likes to
"review the data," as he often says, before making a decision. Deputy Mayor Patricia Malgieri said Duffy kept pushing advisers to seek out all information about the ferry and do so without bias. She and Duffy said that it became clear to them only close to his inauguration that the ferry faced too many financial hurdles to continue. Still, staff met up until late Sunday at City Hall to debate whether there were other options. "Until the end, he would say 'Is there anything that we didn't talk about in favor of the ferry?'" Malgieri said. Then they had to convince the public. As police chief for seven years, Duffy developed an ability to defuse controversy and build community confidence in his decisions, local leaders have said. He was rewarded by winning more than 70 percent of the vote on Election Day. The ferry presented a similar challenge. He and his staff recognized that they had to make a strong case to sell the ship — a case, Duffy said, that had to be based on facts. During his 12-minute televised speech at
5 p.m. Tuesday, Duffy gave examples of why the service should end: "It was brilliant," said Timothy Kneeland, a Nazareth College political science professor. "Ten days into his administration he makes a decision that was rhetorically nicely justified." Kneeland said Duffy was also able to brush back questions about his ability to lead: Would he be an empty suit, overhandled by advisers and beholden to the legacy of Johnson, who backed his candidacy? "We don't make decisions because they're popular or because they're easy or because they're cheap. We make them because they're right, and I think that's what he did," said Dennis Mullen, president and chief executive of the Greater Rochester Enterprise. Moving forward They were hoping for a full year of operation to give it a chance to work. Johnson, the project's main backer, has refused to discuss Duffy's decision. Others, including Council President Lois Giess, say they commend Johnson's efforts. Some officials have taken issue with how Duffy noted that some ferry contracts, in particular a $250,000-a-year contract to dock the ship in Toronto, had been "discovered" by his staff, suggesting that it had not been known to the public. City Councilman Benjamin Douglas, who heads the city-run Rochester Ferry Co., said the contracts were public for months. He said he respects Duffy's decision, but charged that facts are being twisted. "You step off the path when, postmortem,
you try to blame people and blame them unfairly," he said. "It was a political decision," he said.
"Killing it now makes it Bill Johnson's mess. Killing it in a year from
now makes it his mess." "We were able to come to the table
without being emotionally attached to the project from the start and look
pragmatically at it," he said. Brian Curran, who recently retired from City Council and had long been a ferry critic, said the analysis by Duffy and his staff indicates how the project lacked clear oversight. "We were in a situation where people were operating on the basis of hope and imagination instead of dealing in fact and practical objectives," he said.
"And when you do that, you almost always
end up with serious problems." |
It's unfortunate that ex-Councilman Brian Curran left the scene; his sole adamant refusal to back a city-owned ferry from the time CATS went belly-up was right on the money. Had more City Council members followed his reasoning, the city wouldn't be in the process of backing out now after losing a stunning amount of money.
"We were in a situation where people were operating on the basis of hope and imagination instead of dealing in fact and practical objectives," he said. "And when you do that, you almost always end up with serious problems."
Wow. Truer words were never spoken. To a large extent, the unnerving current local sentiment of bringing in a hovercraft to take the place of the floating Hilton is still hanging onto the 'hope and imagination' side of the equation. 'Fact and practical objective' thinking would show nothing has changed; Torontonians and Canadians STILL have little motivation to sail on down to the Rochester area.
That was the primary reason why the ferry flopped the first two times and will be the primary challenge to another cross-lake endeavour. Other than the travel experience itself -- the boat ride -- what's changed? A smaller boat will be more economical to operate and buy and will presumably require fewer passenger ticket sales to support the business, but that's STILL focusing on the method while ignoring the motivation -- or in this case, the lack of.
"Either way, most leaders agree on one thing: Duffy has shown, at least so far, that he's not afraid to make hard choices. "It clearly shows that he's a strong leader and willing to make tough decisions once he has all the facts," said Bill Nojay, a Republican critic of the ferry.... "It was brilliant," said Timothy Kneeland, a Nazareth College political science professor. "Ten days into his administration he makes a decision that was rhetorically nicely justified."
While agreeing the decision to pull the plug was necessary, let's not trip over ourselves in a rush to idolize Duffy or plaster him with stamps of 'leader-gag-ship'. The facts were simply too overwhelming to continue to ignore... not to mention the grumbling of the Great Unwashed was growing louder the longer the business was allowed to operate. It's not as if the mayor was pulling the rug out from under the popularity of a beloved project. That's not 'leader-gag-ship'; that's fending off a proverbial public lynching by some really annoyed residents. "Brilliant"? Or simply doing his job?
I would have done the same... probably much earlier... but it's unlikely my decision would be branded as an example of 'leader-gag-ship'. For that, I'm truly grateful.
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Letters to
the editor
(January 14, 2006) — Have ex-mayor bail
out taxpayers
Whether you agree with Mayor Duffy's decision or not, it's about time somebody made a decision with the interest of the public in mind. I think that I speak for the majority when I say that it is very sad to see the ferry's demise. I feel that mismanagement and outright desperation from the ferry board and former Mayor Bill Johnson are what did the project in. It seems to me that Bill Johnson just wanted to leave his legacy behind without considering the future. Two collisions and several mechanical
problems later, the boat is probably worth around $10 million less than it
was a year ago. MATT CHAMBERLAIN May Mayor Duffy continue to do a great
job. Hopes that Spitzer investigates ferry DAVID H. HUDSON |
"The ferry never should have been purchased because Rochester has only three or four months of good weather a year."
Well, yes... that was known when CATS pitched their woo to the city and should have raised all sorts of questions -- but not because of the capability of the ship. Once again, the method was the focus and the lack of motivation was not... in this climate, few thoughts of the residents turn toward lake activities between Labour Day and Victoria Day/Memorial Day. Doesn't matter if there was a floating high-speed sauna equipped with tanning beds and palm trees; residents turn their backs on the lakes during fall and winter.
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Duffy Awaits Ferry Audit Results
by Kate Welshofer and Matt Biondic file photo Published Jan 13, 2006 As Rochester moves forward with its efforts to sell the fast ferry, the state comptrollers office continues its audit of the project. Alan Hevesi's office agreed to launch the investigation last spring at the request of assemblymen Brian Kolb and Joe Errigo. The probe's objective is to determine whether public funds were spent appropriately on the project. Mayor Bob Duffy pledged his full support of the audit. Duffy also said he was looking forward to the comptroller's findings and recommendations. |
As much as anti-ferry/Johnson factions would love to see a State condemnation of the ferry project, I suspect there'll be an exoneration with a slap on the wrist for the rank amateur handling of the affair. Blame will be assigned but there's not going to the wholesale witchhunt that some might find appropriate.
It's no secret I blame CATS for the debacle; Dominic Delucia and Gang may not have done anything illegal -- incredibly self-serving, maybe, but that's not against the law if the gullible bought into the idea voluntarily. 'WHY' Delucia and a privately-owned company like CATS would pitch such a concept doesn't take much imagination to figure out; any time a private company can use public money to help build their own business... well, that's 'a good thing'.
But Rochester or Toronto could just as easily said, "No" and that would have been the end of that. And that may be the way the State Comptroller's office sees it as well.
Contrasting WHAM13 News' relentless Feel Good School of Reporting, WROC has pretty much held the line on the downside of the ferry project. Vastly more blunt, WROC could be forgiven if they've been lumped into the Naysayer pile. It's much appreciated.
Notice the difference between the WHAM blurb and the WROC piece... same topic released the same day?
"City Attorney Thomas Richards told News 8 Now $20 million is as low as they want to go... "I would hate to burst their bubble but I think $20 million is the best they can get," Shaerf asserted."
Another cruel fact of life is coming up: You don't always get what you want.
| "The prospective buyers now have a figure to start negotiating downward. Since the world now knows what the rock bottom price is, buyers can start there and snag a great deal." |
"It's an asset that's worth brand new $52 million," said Duffy.
Who cares? The Rochester ferry ISN'T 'brand new'. It's been in an accident, logged tens of thousands of miles in salt and fresh water, suffered damage while tied up, carried almost a quarter-million passengers and is now sitting rust-streaked in the Port of Rochester. It costs a fortune to buy, operate and insure. In all but the most ideal cases, it's far more of a liability than a positive cash flow machine.
In short, not only is the city of Rochester faced with selling a very well-used piece of equipment, it's got a very select market to try and sell it to. There's no rosey-coloured scenario here, so Duffy needs to can the sugar-coating.
It's a lemon and unloading it is going to be a challenge; unloading it at the desired price is going to be highly improbable.
Cha-CHING. Whip out those chequebooks, folks. This one's gonna cost ya.
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company is working on severance packages for them. “What we'll be focused on is for employees to be treated, for the Rochester Ferry Company employees, to be treated fairly,” Cormier said. We asked Cormier if employees in Rochester could find other jobs within Bay Ferries. "There's a possibility that some individuals could be placed in other locations if they so desire,” Cormier said.
Bay Ferries will now keep a skeleton crew of about one dozen to maintain the ship and terminal operations until The Cat is sold or until March when the seaway re-opens.
NEWS 10NBC asked if Bay Ferries is considering buying the ship. Cormier told us the Rochester to Toronto route is definitely not an option. When asked about the potential of moving the boat to warm waters, Cormier said, “there's no immediate opportunities for anything.”
In the meantime, Mayor Bob Duffy plans to pay back the $2.5 million owed to Bay Ferries by dipping into the city's reserve fund. Cormier says he's not surprised by Duffy's decision to end service, but says it's no reflection on the customer service of ferry employees. “We certainly have had wonderful staff here that we care about a lot,” Cormier said. Cormier also said that he's planning to speak with employees on the Canadian side. He says so far, no meeting has been scheduled with Rochester city officials, including Mayor Duffy, to work out the details of the city's contract with Bay Ferries.
Among a
list of other things, wasn't the Rochester area told of how the ferry would
generate
'thousands of jobs'?