Post by ferryfast admin on Apr 8, 2011 11:19:51 GMT -5
Deadline today for Mackinac Island ferry application
Apr 8, 2011 |
BY PEGGY WALSH
www.freep.com/article/20110408/NEWS06/104080364/Deadline-today-Mackinac-Island-ferry-application
The Mackinac Island City Council has given Shepler's Ferry until 5 p.m. today to clarify its franchise application or risk not having a franchise.
But owner Chris Shepler is resisting the move because the application does not allow him to state that he is not waiving his rights to continue a lawsuit that was filed in November. In the suit, Shepler accuses the city of trying to create a monopoly for Northern Ferry, which was granted a franchise license Wednesday.
Northern operates the Arnold and the Star Line ferries. Both companies would run from separate docks and under the Arnold and Star Line brands.
The council has given assurances that legal action will not affect franchises and that filling out an application would not be considered a waiver of any rights, said city spokesman Daniel Cherrin.
The city wants Shepler's to use the city's application form, without submitting any additional information in a cover letter, Cherrin said.
"They need to submit the same application that the other ferry operators submitted and provide the same information that the other ferry operators provided," Cherrin said.
The council also wants Shepler's to clarify its rates, specifically a category called "Other," at $0 to $22 per ticket.
Shepler said the rates include complimentary and discounted tickets that his company offers, for example, to groups considering holding a convention on the island. The free or discounted tickets would not be allowed under the city's new rules.
Shepler was to meet with his lawyers Thursday to decide whether he will resubmit the application. He said he is likely to run even without his franchise and wait for the courts to settle the dispute. The company has operated for 65 years.
The council recently set ferry rates at a maximum of $22, $2 below last year's rate, and extended the schedule the ferries must operate. The city also increased the franchise fee the ferry companies pay the island to 7% of gross, up from 2% in previous years.
Shepler said the extended hours mean an additional 759 trips for his ferries during times that will not be profitable.
"It just adds to the expense side of the ledger," Shepler said. "They're giving us no way to recover from a 180% increase in franchise fees."
Mayor Margaret Doud could not be reached, but in a news release she said all ferry companies are being treated equally.
"I am delighted that the city was able to achieve all four of its goals," Doud said. "Ticket prices are being reduced, rather than increased; there is now real price competition between the ferry boat companies, which resulted in the lower prices; visitors to the island will now be able to arrive earlier in the day and leave later in the evening; and the 520 year-round residents of the island are assured of winter boat service."
Contact Peggy Walsh-Sarnecki: mmwalsh@freepress.com
Apr 8, 2011 |
BY PEGGY WALSH
www.freep.com/article/20110408/NEWS06/104080364/Deadline-today-Mackinac-Island-ferry-application
The Mackinac Island City Council has given Shepler's Ferry until 5 p.m. today to clarify its franchise application or risk not having a franchise.
But owner Chris Shepler is resisting the move because the application does not allow him to state that he is not waiving his rights to continue a lawsuit that was filed in November. In the suit, Shepler accuses the city of trying to create a monopoly for Northern Ferry, which was granted a franchise license Wednesday.
Northern operates the Arnold and the Star Line ferries. Both companies would run from separate docks and under the Arnold and Star Line brands.
The council has given assurances that legal action will not affect franchises and that filling out an application would not be considered a waiver of any rights, said city spokesman Daniel Cherrin.
The city wants Shepler's to use the city's application form, without submitting any additional information in a cover letter, Cherrin said.
"They need to submit the same application that the other ferry operators submitted and provide the same information that the other ferry operators provided," Cherrin said.
The council also wants Shepler's to clarify its rates, specifically a category called "Other," at $0 to $22 per ticket.
Shepler said the rates include complimentary and discounted tickets that his company offers, for example, to groups considering holding a convention on the island. The free or discounted tickets would not be allowed under the city's new rules.
Shepler was to meet with his lawyers Thursday to decide whether he will resubmit the application. He said he is likely to run even without his franchise and wait for the courts to settle the dispute. The company has operated for 65 years.
The council recently set ferry rates at a maximum of $22, $2 below last year's rate, and extended the schedule the ferries must operate. The city also increased the franchise fee the ferry companies pay the island to 7% of gross, up from 2% in previous years.
Shepler said the extended hours mean an additional 759 trips for his ferries during times that will not be profitable.
"It just adds to the expense side of the ledger," Shepler said. "They're giving us no way to recover from a 180% increase in franchise fees."
Mayor Margaret Doud could not be reached, but in a news release she said all ferry companies are being treated equally.
"I am delighted that the city was able to achieve all four of its goals," Doud said. "Ticket prices are being reduced, rather than increased; there is now real price competition between the ferry boat companies, which resulted in the lower prices; visitors to the island will now be able to arrive earlier in the day and leave later in the evening; and the 520 year-round residents of the island are assured of winter boat service."
Contact Peggy Walsh-Sarnecki: mmwalsh@freepress.com