Champion's Rate Hike (Update: Push-Back)

Residents aim to stop move to hike ferry rates

Harsens Islanders launch a petition drive

By Christina Hall Free Press Staff Writer

   Some Harsens Island residents are gathering signatures to ask the Michigan Public Service Commission to deny a recommendation by its staff to raise rates of the island’s ferry.

   The petition drive came after a meeting Sunday about a proposed stipulation and settlement agreement signed last week between MPSC staff and Champion’s Auto Ferry. The agreement would allow a $1 rate hike starting March10 and another $1 fare hike in January. A round-trip ferry ticket for a vehicle currently is $7.

   The MPSC must approve the proposed agreement and could take up the matter at its Feb. 28 meeting.

   Champion’s threatened to shut down the 24/7 ferry, the only link between the island and Algonac for visitors and about 1,200 residents other than private boat or plane.

   About 150 residents and ferry company President David Bryson attended Sunday’s meeting, said Norman Rhodes, a lifelong island resident.

   “This meeting was not against Mr. Bryson. This meeting was to bring to the forefront the fact that the Michigan Public Service Commission — the duly-appointed group that is supposed to protect the health, safety and welfare — has, on its own accord, created a ferry increase that is totally unasked for and out of line,” Rhodes said Monday.

   “Whether the dollar is needed or not is what they are to determine on our behalf. They can only do it if they follow their own administrative rules or procedures.”

   The petition lists six reasons for denying the proposed agreement, including that it is not in the best interest of the public. Other reasons include that the MPSC denied a prior request by Champion’s to raise rates and the ferry service didn’t ask for a rate hike in this case, which focused on Bryson retiring and closing down the ferry.

   The petition states MPSC staff “violated the administrative procedure rules” for the commission “with this unsolicited recommendation.”

   It also states that the MPSC will breach its legal duty resulting in loss, harm and injury to the public by initiating/approving a rate increase that was not specifically requested by Champion’s and an additional $1 to fund new equipment that Champion’s never requested, “which contrary to the administrative procedure rules has denied the public the time and opportunity to comment.”

   MPSC officials could not be reached Monday. State offices were closed for Presidents’ Day.

   Rhodes said, “We have no time to waste.”

   Organizers are directing the petition drive and other letters and comments to the MPSC before its meeting next week.

   Rhodes said he left Sun-day’s meeting with 60 signatures and handed out 15 petition forms, which are available at the Waterfront Shoppe on South Channel Drive or through him at bobdog68@gmail.com  . He said there is no cutoff to signing the petition or filing comments.

   “Even after the smoke settles, people have a right to speak their mind. We are up against a deadline. We don’t know what the deadline is,” Rhodes said.

   MPSC spokeswoman Judy Palnau said last week there is no deadline for the commission to make a decision. If it doesn’tdiscuss the matter next week, it has meetings March 15 and 27.

   According to the proposed agreement, part of this year’s rate hike would be used to hire a manager to facilitate Bryson’s transition into retirement and to allow for the company’s continued operation. Money from next year’s hike is to set aside funds for an additional ferry or major capital improvements in existing ferries, according to the proposal.

   The proposed agreement states the company would not file a request for additional fare increases prior to Jan. 1, 2015,unless severe economic factors prevailed.

   In July, Bryson submitted a letter to the MPSC indicating his intention to retire and giving official notice that the company intended to discontinue ferry service at some point, saying the company was being “regulated out of business.”

   • CONTACT CHRISTINA HALL: CHALL99@FREEPRESS.COM  

KIRTHMON F. DOZIER/DETROIT FREE PRESS

   Traffic leaves the Harsens Island ferry in August. Residents have launched a petition drive trying to prevent two $1 rate raises.

Champion's to Receive Fare Increase's

Tentative pact will boost Harsens Island ferry fares

By Christina Hall Free Press Staff Writer

   The operator of the Harsens Island ferry will get the fare increase it has sought, under a tentative agreement signed this week.

   Users of the ferry between Harsens Island and Algonac will pay $1 more in fares starting March 10 and an additional $1 next January if the agreement is approved by the Michigan Public Service Commission. A round-trip ticket for a vehicle is currently $7.

   The rate hikes are included in a stipulation and settlement agreement signed Monday by MPSC staff and Champion’s Auto Ferry. Champion’s had threatened to shut down the ferry, the island’s only link to the mainland, other than by private boat or plane.

   Part of the rate hike money will be used to hire a manager to facilitate company President David Bryson’s transition into retirement and to allow for the company’s continued operation, according to the proposed agreement. Once a manager is hired, the company would file a letter with the commission.

   Money from next year’s ferry hike is for the “sole purpose of setting aside funds for an additional ferry or major capital improvements to Champion’s existing ferries,” according to the proposed agreement. The money would have to be deposited monthly in an account administered by the federal government. It would allow the purchase of an additional ferry or capital improvements to existing boats.

   The proposed agreement states the company would not file a request for additional fare increases prior to Jan. 1, 2015, unless severe economic factors prevailed.

   MPSC spokeswoman Judy Palnau said there is no deadline for the commission to make a decision. She said the MPSC’s next regularly scheduled meetings are Feb. 28 and March 15 and 27.

   Neither Bryson nor his attorney returned calls or e-mails Tuesday. The attorney for MPSC staff referred a Free Press reporter to Palnau, who said the proposed settlement agreement “speaks for itself.”

   The 24-7, year-round ferry is the only way visitors and about 1,200 island residents can get to and from the mainland unless they go by private boat or plane.

   In July, Bryson submitted a letter to the MPSC indicating his intention to retire and giving official notice that the company intended to discontinue ferry service at some point, saying the company was being “regulated out of business.”

   The MPSC had previously denied requests to raise rates, including a $1 rate hike in April.

   In December, Bryson said he was willing to delay retirement for one or two years if the company was allowed to increase revenue to previously approved 2009 levels, giving it the finances to hire and train an operations manager to take over for him.

   The MPSC received 16 public comments about the matter, a third of them against a fare hike.

   It also received letter Dec. 20 from Frank Piku of Waterford who said he had “serious interest” in buying, operating and managing the ferry service. Piku, who said he carried a 100-ton captain’s license, said he called Bryson about his interest many months ago but Bryson said he was not selling the business at that time and that he would keep Piku’s name and contact him if interested.

   • CONTACT CHRISTINA HALL:

   CHALL99@FREEPRESS.COM  

AUG. 17, 2012, PHOTO BY KIRTHMON F. DOZIER/DETROIT FREE PRESS

   Users of the ferry between Harsens Island and Algonac will pay $1 more in fares starting March 10 under a tentative agreement.