Post by ferryfast admin on Jun 7, 2012 10:18:46 GMT -5
State, Mackinac Island near deal governing ferry service
June 7, 2012 |
Detroit Free Press
www.freep.com/article/20120607/NEWS06/206070556/State-Mackinac-Island-near-deal-governing-ferry-service
After more than a year of wrangling over which ferry companies would get a franchise to run between Mackinac Island and the mainland, two bills pending in the state Senate appear to be on the verge of compelling a compromise.
At a special meeting Wednesday evening, the Mackinac Island City Council essentially approved a memorandum of understanding reached Saturday in a meeting of the mayor, mayor pro tem, ferry representatives and a few island businesspeople, including the owner of the Grand Hotel.
In the agreement, the ferries got some freedom to set prices in summer. The city added the ability to assure competition and reliable winter travel.
If the council did not agree to accept the memorandum, state Sen. Arlan Meekoff, a Republican from Olive Township, was to hold hearings this morning on two bills: one that repeals the part of the Mackinac Island charter (which was granted by the Legislature in 1899) that gives the island government the right to regulate the ferries, and another that gives the Michigan Public Service Commission the right to regulate the island ferries.
Meekoff's district is in southwest Michigan, far from Mackinac Island.
"He's the Senate majority floor leader, which is the second most important position in the state Senate, and he often has the opportunity to work on more statewide issues," said Bob DeVries, Meekoff's chief of staff.
DeVries said Meekoff "believes in private enterprise," and Mackinac Island has "taken steps to create a monopoly."
Last year, the council considered giving Northern Ferry the only island franchise. Northern Ferry runs the Arnold and Star Lines ferries. The Shepler's Ferry line sued.
Eventually, both companies were granted franchises, but the issue simmered.
Shepler's owner, Chris Shepler, could not be reached for comment.
Mayor Margaret Doud, who signed the memorandum, said she's concerned about Senate bills taking away current city powers.
"We are an island. Ferry boats are very important to us, and I feel that any type of issue of this magnitude should be dealt with on a local level, not in Lansing," Doud said.
Councilman Sam Barnwell said he hopes this puts the controversies of the last two years behind them.
DeVries said the Senate bills will die if the council agrees to the terms outlined in the memorandum.
"If this problem gets fixed on its own, then there's no need for legislation," DeVries said.
Contact Peggy Walsh-Sarnecki: 586-826-7278 or mmwalsh@freepress.com
More Details: Mackinac Island ferry deal in works
The memorandum of understanding for Mackinac Island ferries includes these provisions, among others:
• Ferry franchises are granted for 15 years.
• Ferries determine their own rates and schedules.
• The ferries will pay $600,000 in franchise fees to the city. (Last year the city earned a little more than $900,000 in franchise fees.)
• The city pays $100,000 of the franchise fees to the ferry guaranteeing winter passenger service.
• Any action on proposed Senate bills is suspended until after the city considers the memorandum.
June 7, 2012 |
Detroit Free Press
www.freep.com/article/20120607/NEWS06/206070556/State-Mackinac-Island-near-deal-governing-ferry-service
After more than a year of wrangling over which ferry companies would get a franchise to run between Mackinac Island and the mainland, two bills pending in the state Senate appear to be on the verge of compelling a compromise.
At a special meeting Wednesday evening, the Mackinac Island City Council essentially approved a memorandum of understanding reached Saturday in a meeting of the mayor, mayor pro tem, ferry representatives and a few island businesspeople, including the owner of the Grand Hotel.
In the agreement, the ferries got some freedom to set prices in summer. The city added the ability to assure competition and reliable winter travel.
If the council did not agree to accept the memorandum, state Sen. Arlan Meekoff, a Republican from Olive Township, was to hold hearings this morning on two bills: one that repeals the part of the Mackinac Island charter (which was granted by the Legislature in 1899) that gives the island government the right to regulate the ferries, and another that gives the Michigan Public Service Commission the right to regulate the island ferries.
Meekoff's district is in southwest Michigan, far from Mackinac Island.
"He's the Senate majority floor leader, which is the second most important position in the state Senate, and he often has the opportunity to work on more statewide issues," said Bob DeVries, Meekoff's chief of staff.
DeVries said Meekoff "believes in private enterprise," and Mackinac Island has "taken steps to create a monopoly."
Last year, the council considered giving Northern Ferry the only island franchise. Northern Ferry runs the Arnold and Star Lines ferries. The Shepler's Ferry line sued.
Eventually, both companies were granted franchises, but the issue simmered.
Shepler's owner, Chris Shepler, could not be reached for comment.
Mayor Margaret Doud, who signed the memorandum, said she's concerned about Senate bills taking away current city powers.
"We are an island. Ferry boats are very important to us, and I feel that any type of issue of this magnitude should be dealt with on a local level, not in Lansing," Doud said.
Councilman Sam Barnwell said he hopes this puts the controversies of the last two years behind them.
DeVries said the Senate bills will die if the council agrees to the terms outlined in the memorandum.
"If this problem gets fixed on its own, then there's no need for legislation," DeVries said.
Contact Peggy Walsh-Sarnecki: 586-826-7278 or mmwalsh@freepress.com
More Details: Mackinac Island ferry deal in works
The memorandum of understanding for Mackinac Island ferries includes these provisions, among others:
• Ferry franchises are granted for 15 years.
• Ferries determine their own rates and schedules.
• The ferries will pay $600,000 in franchise fees to the city. (Last year the city earned a little more than $900,000 in franchise fees.)
• The city pays $100,000 of the franchise fees to the ferry guaranteeing winter passenger service.
• Any action on proposed Senate bills is suspended until after the city considers the memorandum.