- the native canadian

By Karen Noble Hanson

(January 19, 2006) � City Council last January named me one of two private-sector members on the board of managers of the Rochester Ferry Co. LLC. I saw this as a chance to promote our festivals, sports events, universities, wineries, industries, hotels, convention center, etc. I am sad for us all that financial realities forced us to discontinue ferry operations.

I want to indicate my perceptions of the constraints under which the ferry board operated and to clarify and correct any statements I have made.

After the ferry purchase last February, the Johnson administration, staff and ferry board faced several immediate challenges. Contracts from the former CATS organization had been in place, about which the outside managers, such as I, had no knowledge, as we were not part of the efforts until after the bankruptcy. Contracts needed to be amended, curtailed or executed by the new organization and we needed to execute new pacts with new organizations.

It was already late February and the ferry needed to start up no later than spring. Bay Ferries had been identified as the most qualified management company (a decision I supported). As there were no corporation staff, city staff negotiated contracts on the board's behalf. To them we were grateful.

The negotiated contracts came before the board, sometimes verbally, often with little time for detailed review. We often discussed contract changes. Sometimes, time simply did not allow new negotiations. (Can't handle the work? Don't take the job.)

Meanwhile, we faced insurance, warranty, pilotage, boat repair, marketing and other issues. Fuel costs grew sharply, affecting all operating analyses. Marketing expectations were within the management contract, at a minimal budget, a fact that later became an issue.

Given the mounting budget concerns, we formed three committees, one, the Finance Committee that I chaired, with the able help of city finance staff.

While we discussed an increase in borrowing, we also identified items that we felt needed to be part of the ongoing board's responsibilities. These included negotiating a reduction of the expense associated with the Toronto Port Authority pact that I understood to be $250,000 for 2006. While I did not recall the 14-year term of the contract covered in the conference call, the minutes indicate this was part of the discussion. I regret this mistake. (A costly oversight, wouldn't you say?)

We also identified other financial impact issues. These included operating under the U.S. flag (pilotage), developing a broader marketing program and funds to support it, resolving the Rochester port issues, developing other revenue (public and private), in order to close the revenue/expense gap.

Mayor Johnson's and the City Council's staffs worked hard within the constraints and critical periods facing us. In the final analysis, there were just too many hurdles to overcome. We need to move forward, now, without acrimony. Mayor Robert Duffy's decision is moving forward, and as a board member, I support his decision.

Noble Hanson is secretary, board of managers of the Rochester Ferry Co. LLC.

Fast Ferry for sale, interested buyers

1/18/06

Questions loom about who may be interested in purchasing Rochester�s fast ferry. Last week, Mayor Bob Duffy announced the city would stop service and sell the ship. Duffy says he has received numerous phone calls from interested buyers; including the Turkish government. Duffy also says a prominent former Rochester resident has expressed interest in the ferry route.

Mayor Duffy has put three city hall employees in charge of selling the ship. They include City Attorney Tom Richards, Budget Director Bill Ansbrow and Finance Director Vince Carfagna. Industry experts believe the ferry will sell for around $15 - $18 million.

Meanwhile, City Council members have approved a more than $9 million plan to pay off Rochester�s fast ferry debt. Duffy says the city will repay the $2.5 million it owes Bay Ferries. The Rochester Ferry Company also had a contract with The Toronto Port Authority agreeing to pay them $250,000 a year for 14 years.