Page Sixty-Two

15 JANUARY 2006

Ben's dedication.

[News]
Sunday   January 15, 2006
 
[Board President Comments on Ferry]
Douglas: Mayor didn't take risk

Board President Comments on Ferry

 

by Rocco Vertuccio/ Carrie Phillips

Published Jan 14, 2006

The president of the Rochester Ferry Board said that even though the board and Mayor Duffy had the same information Duffy’s opinion on whether the service would succeed differed from the board because Duffy may not have been comfortable with the risk.

Ben Douglas said that he believes the ferry would have met ridership goals and its budget target in 2006. He said that taking the numbers out of context created misinformation and prevented some from seeing the ferry service in the big picture.

"What we had said all along we were able to contain expenses within budget. You can't take a single item and having nothing to compare it with and understand how it fits to the whole venture," he said.

Douglas said that he never felt any pressure from Mayor Johnson to move the ferry project forward.

He said that the work was a labor of love for those who worked on the project. They wanted to see the ferry succeed.

Port of Rochester

Ben Ben, Ben.  Many thanks for all your work and persistent dedication to  project which was futile from inception.  I've worked for a company with a great idea rooted in unrealistic execution, feeble business plan and massive cost overruns, so I can identify with best intentions saturated with unfettered optimism.  When the end came around, it was the culmination of a number of unforeseeable factors, but an honest assessment would recognize most of the problems were completely obvious... only the business operators and employees didn't want to acknowledge them.

Having said that, it's time to admit the concept was flawed and no amount of extra time or money can change that.  Smaller communities with relatively limited attractions have an extremely difficult time attracting residents of larger communities swamped with a diverse array of attractions.  That's just the way it is.

A little more classic suburban myopia:

 

 

19º | Hi 31º / Lo 20º |
 
Letters to the editor
(January 16, 2006) — Duffy passes up chance to aid city

It's sad to see the ferry leave. I rode it at least three times last summer and had a wonderful experience. It was so nice to see Rochester step up to bring fun and tourism to our town. (Some might say the city did neither.) The improvement to the Port of Rochester was something to be proud of.

New Mayor Duffy said the money would be better spent on more police and removing lead paint from city homes. Well, money can and will always be spent on that, especially for a dying town that has the highest murder rate in New York state.

If the ferry had been given a chance to work through package deals and better advertising, along with a casino built in our downtown area, maybe the revenue would have helped put life back into Rochester and there would be the money for added police and removal of lead paint.

LYNN RYAN
PITTSFORD

"...maybe the revenue would have helped put life back into Rochester and there would be the money for added police and removal of lead paint."

Maybe.  Maybe not.  And if it didn't, then what?  Ms. Ryan has no answer.

Given all past and present indicators -- coupled with a bleak outlook to say the least -- a rational and pragmatic person would have no hesitation saying Ms. Ryan is living in a seriously delusional state of mental well-being.  Her personal experience is nice, but worthless in light of the stunning financial loss incurred by the ferry and it carries no importance whatsoever.... except to her.

Life works on reality... not 'maybe'... and if Ms. Ryan can offer nothing more than a "It was fun and maybe it could have worked if..." as a solution, she may be well-advised to take up some hobby which will occupy her copious amount of free time instead of wasting it on babbling about fairy tales and fluff.

Thanks for sharing, Lynn.  Now go play with your fingerpaints and let the grownups take care of business.

A bit dated but still worth a look:

GLOBEANDMAIL.COM

Other U.S. cities eyeing ferries

Erie, Cleveland and Grand River, Ohio, are undeterred by Rochester's losses

As the high-speed Rochester-to-Toronto ferry calls it a season, having lost millions of dollars and thousands of riders to a rough year, three other Great Lakes communities are getting set to launch their own Canada-bound vessels.

But Rochester City Council is vowing the 80-kilometre-an-hour catamaran will be back in the spring, despite going more than $5-million in the red from startup and operating costs since the U.S. city bought it in February.

Council accepted the recommendation of the Canadian operator of the ferry, Bay Ferries Ltd., which advised that services be stopped as of two days ago because fewer than 100 passengers were boarding sailings in the past two months. The 774-seat, five-storey vessel was scheduled to run until Dec. 31.

"We have not been pleased with the ridership so far and we know why," said Bill Sullivan, chief of staff for Rochester City Council.

"We started so late in peak season. We were ramping up during the time we should have been at our peak and that cost us. That cost us lots and lots of money and riders."

Mr. Sullivan said startup expenses were $2-million and operating costs reach at least $3-million, but he blamed the revenue side of the operation -- ticket sales -- for the loss.

"The expense side was completely on budget," he said.

Today, council will be proposing increased funding for the ferry for 2006, he added.

Bay Ferries spokeswoman Lisa Elkind said scheduling enough group bookings was difficult with a launch date of June 30.

"We had a lot of obstacles to overcome this year. But now we can get ready to have a strong 2006," she said, adding the ferry will operate only from March 31 to Oct. 31.

The City of Rochester bought the Spirit of Ontario, later renamed the Cat, for $32-million at an auction this year.

Before that, it was privately owned and shut down in September of 2004, after about 80 days of operation, when its private backers ran out of money and left it $1.7-million in debt.

Despite the financial woes of the Rochester ferry, which can skip across Lake Ontario to Toronto in 2½ hours, several other U.S. communities on Lake Erie are eyeing ferry routes to Ontario destinations.

Cleveland, which has $6-million in federal money for the construction of a terminal, is looking to service a route to Port Stanley, while Grand River, Ohio, hopes to shuttle to and from Port Burwell.

Port Dover would be the daily destination of a 250-passenger ferry from Erie, Pa.. However, it will launch a trial 50-passenger, high-speed vessel next summer at a cost of $900,000 to get some of the kinks out, including customs and cost-recovery, the executive director of Erie's port authority said yesterday.

Ray Shreckengost commented that a lot of the problems that Rochester experienced were because "they never went in and sorted those things out ahead of time and wound up with problems at the end. We're hoping we don't make the same mistakes."

He said the goal is to boost the town's economy by taking 1,000 new people to the downtown core a day.

"Right now, those people are driving by Erie on I-90 (U.S. Interstate 90) and they're not stopping in the town and they're not spending any money here. We want to capture them and bring them into town."

"(Rochester City) Council accepted the recommendation of the Canadian operator of the ferry, Bay Ferries Ltd., which advised that services be stopped as of two days ago because fewer than 100 passengers were boarding sailings in the past two months."

Something doesn't add up.  Or maybe that was the problem; the debt WAS adding up and Bay Ferries said, "No more"... giving City Council no alternative.

In any case, one is left wondering if Bay Ferries HADN'T 'recommended' suspending the season earlier than planned, would the Ferry Board have been content to let the thing cruise the lake virtually empty?  Just for the sake of running up the fuel bill?

How do these people get elected to public office?  Better still, WHY do these people get elected to public office?

And they laughed at mayoral candidate Chris Maj's suggestion to plant greenery on roofs to save energy and improve air quality?  Yet elected officials send a gas-guzzling polluting ferry across the lake with a handful of boat riding enthusiasts?

Life in Rochesterland.  You'd have to live here to believe it.

An untouchable Charter of Rights and Freedoms that truly stands up for the rights of Canadians A Parliament that can pass legislation that infringes upon your fundamental rights and freedoms.
A Prime Minster that believes your country was built "on compassion, on generosity, on sharing and understanding" A man leading your country that believes Canada is "second rate" to our neighbours in the south.
Income Tax cuts that actually put more of your money back in your pocket. A plan where Canadians have to spend their money before they see any benefit.

17 JANUARY 2006

All the news that's fit to print.

Rochester Finds It Is Losing a Ferry Service

Published: January 16, 2006

ROCHESTER, Jan. 13 - Last month, Anthony Alleyne arrived at the Lake Ontario shore hoping to catch a high-speed ferry to Toronto, the last trip of the season. He thought he had more than enough time, but as soon as he walked into the terminal, he saw, to his dismay, the ferry pulling away without him.

 Max Schulte for The New York Times

The Rochester ferry, a catamaran, cost $42 million. The passenger fare to cross Lake Ontario was $30.

Mr. Alleyne, 52, wasn't mistaken about the time; the ferry did leave a few minutes ahead of schedule. "I wanted to catch that ferry," he said. "It was the last one. It's sad."

Many Rochesterians now feel the same. On Tuesday, they learned that the popular but unprofitable ferry service would cease. Rochester's new mayor, Robert J. Duffy, declined to request an additional $11.5 million in financing for the 2006 season, saying it would be a poor investment given the city's continuing struggles with problems like joblessness and violent crime.

"There is not one iota of doubt it's the right decision," Mr. Duffy said Friday. "It was years away from breaking even."

Rochester embarked on the ferry project in hopes of becoming an international tourist destination and invigorating its economy. After years of negotiations, two entrepreneurs brought a gleaming $42 million catamaran to a new terminal at Rochester's lakefront in 2004. The ferry, which crossed Lake Ontario to Toronto in two and a half hours, was popular with local residents, who accounted for the majority of ticket sales. Many would even come to the shore just to watch it pull out.

The venture was fraught with problems from the beginning, though. The ferry came by sea from Australia, where it was built, but once it was in New York City, it banged into a dock. Later, its engines malfunctioned. The mishaps meant costly repairs and interrupted service.

The ferry service operated just the one catamaran, which had a capacity of 774 people and 238 cars. At a fare of about $30 a person and making two round trips a day, it was heavily used at its peak. Still, operating costs soared because of rising fuel prices and regulatory complications, and after 80 days the owners abruptly closed down, citing a $2 million debt.

The City of Rochester came to the rescue, buying the ferry at a bankruptcy auction in February. The mayor at the time, William A. Johnson Jr., called it the city's "phoenix, rising up."

Yet under city control, the dismal business results continued. The service lost $1 million a month for 10 months, city officials said, burning through a reserve fund. By late fall, the number of passengers dropped to several dozen per trip.

Mr. Duffy said his administration's projections showed the ferry would still lose money this year even if it doubled the number of riders, increased fares, and had no unexpected costs. Shutting it down "was clearly the route we had to go," he said. "It was not financially viable." He plans to sell the catamaran.

Untangling Rochester from the ferry service will not be easy, though. City and state officials have invested more than $63 million in the project, including construction of the terminal and the city's purchase of the ship. The city signed a 14-year contract with the Toronto Port Authority guaranteeing the authority at least $250,000 a year in docking fees, a commitment Rochester hopes can be canceled.

The vendors who opened restaurants and shops inside the terminal signed long leases. Mark Cammilleri, owner of Expresso Cafe, a coffee shop inside the terminal, has watched his business dwindle to a few customs agents, security guards and other workers. Once the ferry is sold, even they will be gone. "We need to develop the whole area," he said. "Rochester needs more than a ferry to do that."

Mr. Duffy plans to meet with the vendors soon to see what the city can do for them. He is willing to meet with other potential ferry operators, if they are willing to set up a private, preferably less ambitious service, along the same route. A hovercraft company has already publicly expressed interest.

Mr. Johnson, the former mayor, believes he has been portrayed as solely responsible for the ferry's failure. Before the city took control, federal lawmakers, international lenders and the City Council looked at the business plan and approved, he said. "Why is it when things go wrong, it's Bill Johnson and his folly?" he asked.

He said he was sure that with more time and money, the ferry would have thrived. "It set us apart, it was a source of pride," he said. "Many of us know it would have worked, and that is sad."

Interesting.  Ex-Mayor Bill can talk to the New York Times, but has no desire to speak with the local media.  That wouldn't be because he couldn't pass up a chance to get quoted in one of the most recognized newspapers in the world, now would it?  I mean, why bother to whine about being blamed in the local media when whining in a nationally renown paper gives bragging rights at the local cocktail receptions?

"The ferry, which crossed Lake Ontario to Toronto in two and a half hours, was popular with local residents, who accounted for the majority of ticket sales. Many would even come to the shore just to watch it pull out."

A bit of a wry observation?  Maybe.  But since it's true, why not include it?  It gives credence to an article which points to a community so small, it finds a Big Boat too exciting a sight to ignore.

"City and state officials have invested more than $63 million in the project, including construction of the terminal and the city's purchase of the ship."

State??  As in New York State?  As in taxpayers of New York State?  As in Downstate taxpayers watching their money being pissed away on some Upstate debacle?  Bet that's going to go over well in Westbury, Long Island.

 

18 JANUARY 2006

All the news that's fit to print.

 

 

43º | Hi 46º / Lo 28º |
 
Duffy, Johnson speak out on ferry

(January 17, 2006) — Former Mayor William A. Johnson Jr. today broke his silence about the fast ferry project, maintaining that his staff strenuously and publicly researched the prospects of keeping the fast ferry alive before buying the vessel at auction in February.

Former Mayor Johnson (right) this morning maintained his staff did due diligence with the ferry; Mayor Duffy (left) this afternoon said he didn't blame Johnson.

This afternoon, Mayor Robert Duffy reiterated that he was not pointing fingers.

"I'm not really going to get into a back-and-forth," Duffy said, "I've never criticized Mayor Johnson's administration, I never second-guessed him."

"The mayor's legacy is not attached to the ferry."  (Probably shouldn't be, but it is.)

At the morning news conference, Johnson:

  • Chafed at suggestions from the incoming administration of Mayor Robert Duffy and the media that a lease agreement for use of the Toronto terminal was a secret. In that 14-year agreement, the city pays $250,000 a year, in Canadian currency, for use of the terminal.
     
  • Revealed that his administration aided investigations from the state Attorney General's Office and the FBI into how the previous ferry owners, Canadian American Transportation Systems, or CATS, used millions in state and federal money to start the ferry service.  (As if they had a choice.)
  •  
  • Refused to challenge the decision of his successor, Mayor Robert Duffy, who last week announced that he would kill the ferry project.  (As if they had a say.)

    "There is no question that there was some risk involved (with the ferry), but there was also some opportunity involved," Johnson said.

    Last week, Duffy administration officials said they had "discovered" the 14-year pact between the Toronto Port Authority and the Rochester Ferry Company LLC for use of the Toronto terminal. That agreement was widely known, and a record of its approval was recorded in the June 13 minutes of the Rochester Ferry Company LLC, Johnson noted. Those records have been publicly available, even on the city's Web site, Johnson noted.  (Apparently true.)

    CATS operated under a similar agreement, Johnson said.

    Former City Corporation Counsel Linda Kingsley, also present at the news conference at Mt. Olivet Baptist Church, said the city staff last year turned over CATS records to the FBI and the state Attorney General's Office in case the records were needed with ongoing investigations. The Attorney General's Office has said it is investigating, while the FBI has not acknowledged any probe.

    Johnson, who said he is not attempting to lobby city official to restore the ferry service, said he would have continued the ferry service this year had the decision been his.
    "The Fast Ferry has been the most controversial project of my tenure in office," Johnson said. "It was met with extremely high expectations and a high degree of disappointment when the startup was slow and interrupted.

    "In my opinion, this venture never had a fair chance to prove itself," he said.

    Includes reporting by Victoria Freile.
    GCRAIG@DemocratandChronicle.com
  • Stick to your guns, Bill.

    You might as well... not that it'll mean anything or change anything.  But since your judgement has been questioned anyway, you've got nothing to lose.

     

     

    43º | Hi 41º / Lo 28º |
     
    Buyer wannabes come calling

    (January 17, 2006) — Mayor Robert Duffy today said initial interest in buying the ferry has come from firms from New York City and Turkey.

    Duffy said the city has received calls from ferry services in the United States and an intermediary from Turkey. He did not disclose how many calls the city has received.

    Duffy has said the city should expect no less than $20 million for the ship it bought for $32 million last February.

    Getting a good sale price is critical to the city minimizing impact on taxpayers as it assumes the $42 million debt racked up during the first year of operations. Money from the sale will go partly to repay $9.4 million anticipated to be borrowed from city insurance reserves. The money is needed to pay shut-down expenses. City Council is voting on the $9.4 million tonight.

    BDSHARP@democratandchronicle.com

    Wonderful!  With all the interest pouring in, it should be a snap to sell the ferry!  And we'll get at least $20 million for it as well!  Why... that worked out just FINE!

    Ferry funds approved

    1/17/06

    Tuesday night, Rochester city council members took another step toward getting out of the fast ferry business.

    Rochester City Council approved more than $9 million to pay off this year's ferry debt.  It comes on the day former Mayor Bill Johnson broke his silence on the ferry issue, which included comments about current Mayor Bob Duffy.

    NEWS 10NBC also has new information about possible ferry buyers and who is going to handle the sale of the ferry for the city.  But the hot topic continues to be the lease contract that paid the Toronto Port Authority more than $250,000 a year.

    “I am angry that anyone would remotely insinuate that there is some malfeasance or cover up,” Johnson said. With ferry documents in hand at a news conference on Tuesday, Johnson said he does not understand the Duffy administration's claim that it did not know about the Toronto Port Authority agreement. Still, he says there is no bad blood. “I have no desire to fight with Bob Duffy, in fact there's nobody in the town who wants to see him succeed more than me,” Johnson said.

     

    “I feel very badly about some of the comments being made about him because I think it's unfair,” Mayor Duffy said.

     

    He says Johnson had a strong, personal attachment to the ferry project, which probably made some decisions difficult. In the end, Duffy stands by his decision to end the service.

     

    He has also put three city hall employees in charge of selling the ship, City Attorney Tom Richards, Budget Director Bill Ansbrow, and Finance Director Vince Carfagna. Mayor Duffy says he's gotten a number of calls from interested buyers, including one from Turkey, but he will not confirm if it was this group from the Turkish Government that toured the ship last year. “It's hard to gauge what is a serious buyer versus what is an inquiry,” Mayor Duffy said.

     
    In the meantime there are ferry bills to pay, $2.5 million to Bay Ferries, $1.5 million to EFIC, and half a million to maintain the ship until the sale. The total comes to $9.4 million, which city council agreed to take from the city's insurance reserve fund.

     

    That leaves $3 million in the fund, a workable cushion, says Council President Lois Giess.

     

    “We were convinced by our folks here that it would be sufficient for any claims that we'd have,” Giess said.

    Shutting down the service might cost less than $9.4 million. Any extra money would go back into the reserve fund. As for another ferry service coming to Rochester, Duffy says he's gotten calls, some a little off the wall, some a possibility. He also says a very rich former Rochesterian who now lives out of state is interested as well. But Mayor Duffy would not release any names.

    "The total comes to $9.4 million, which city council agreed to take from the city's insurance reserve fund."

    Magic.  It's magic.  The City school budget faces multi-million dollar shortfalls, city residents face tax increases, downtown Rochester practically has tumbleweeds blowing through and there's a spare $9.4 million lying about which doesn't have to be repaid.  Right??

    I mean, there's no need to replace the $9.4 million back into the 'insurance reserve fund', is there?  Because if it DOES need to be repaid, it sort of begs the question "Where's it going to come from?"

    Probably the same place it always comes from.  The taxpayers.

    Yet another proposal from the astute Rochester business community:

    WROC 8 Rochester HomepageProposal To Sell The Fast Ferry On eBay
     

    1/17/2006 6:00 PM
    (Cathy Orosz, WROC-TV)

    You can't really sell something the size of Rochester's fast ferry at the used car lot.  But what about America's biggest garage sale: eBay? 

    Although some have joked about the idea, it's no laughing matter at Auction and Go in Webster. 

    "This is not a joke," said owner Linda Viola.  "We are very serious about doing this for the City." 

    Viola says they'll forego their commission and even cover any fees, all to help Rochester recoup some of its loss.
     

    "We don't want to see the City going down any further than they already have, and we want to try and help them get out a little bit." 

    It might not be that much of a stretch.  They sell plenty of big-ticket items at Auction and Go. 

    "We've done cars, boats, motor homes, RVs," said Viola.  "We shipped a limo to Spain.  We've done everything from jewelry to a $900,000 motor home." 

    From classic cars to custom jeeps, they've posted it all on eBay.  Most items are stored inside their Webster facility, but obviously the ferry would have to stay at the port.  Auction and Go would send one of its professional photographers to take pictures and then post them online. 

    The City could also set a reserve price which means the ferry wouldn't sell unless it reached that magic number.  So there's really no risk. 

    "If they put a limit on there of $40 million, it won't sell unless it reaches $40 million," explained Viola. 

    A City spokesman says this is not something Mayor Bob Duffy will consider.  The City's plan is to form a task force and seek out a professional broker. 

    "First and foremost, the City is responsible to taxpayers," said Gary Walker.

    "This is not a joke," said owner Linda Viola.  "We are very serious about doing this for the City."

     To next page Sorry.  Speechless here.  The Rochester business community's credibility is highly suspect.