Post by ferryfast admin on Feb 1, 2006 15:19:56 GMT -5
City settles a ferry debt
Nearly $3.2 million paid to ship's manager; contract buyout pending
Brian Sharp
Staff writer
Democrat & Chronicle
www.democratandchronicle.com/
(February 1, 2006) — The city has settled up with Bay Ferries Great Lakes LLC for debts covered by the ferry manager, cutting the company a check for nearly $3.2 million.
Doing so drained more than one-third of the $9.4 million that City Council agreed to loan from city insurance reserves to pay expenses for shutting down the ferry service.
City officials still must negotiate a buyout of their three-year contract with Bay Ferries. Monday's check for $3,192,374.59 was for expenses Bay Ferries covered to date for the city-created Rochester Ferry Co. More than one-third of the total was spent on fuel for the 774-passenger ship.
Mayor Robert Duffy decided Jan. 10 to end the Rochester-Toronto service after the operation lost $10 million in 10 months. Rochester Ferry was broke and Bay Ferries had covered an estimated $2.5 million in expenses at the time of Duffy's announcement. In a Jan. 12 letter to City Council, Duffy noted that and shutdown costs were "best estimates at this time" for shutting down the service.
A follow-up memo was sent to City Council members before their Jan. 17 vote authorizing the $9.4 million internal borrowing. The memo itemized more than $650,000 in additional, outstanding debts at various payment stages, resulting in the figure of nearly $3.2 million. That adds to a restructured $40.5 million debt used to buy the ship and pay most 2005 expenses.
Ferry board member Gary Walker, who also is spokesman for Duffy, said the $9.4 million estimate was conservative. The legislation built in a $500,000 contingency. The ferry board will be receiving detailed reports on a monthly basis of expenditures drawn from reserves. The board last met Jan. 24. The next board meeting has not been set.
BDSHARP@DemocratandChronicle.com
Nearly $3.2 million paid to ship's manager; contract buyout pending
Brian Sharp
Staff writer
Democrat & Chronicle
www.democratandchronicle.com/
(February 1, 2006) — The city has settled up with Bay Ferries Great Lakes LLC for debts covered by the ferry manager, cutting the company a check for nearly $3.2 million.
Doing so drained more than one-third of the $9.4 million that City Council agreed to loan from city insurance reserves to pay expenses for shutting down the ferry service.
City officials still must negotiate a buyout of their three-year contract with Bay Ferries. Monday's check for $3,192,374.59 was for expenses Bay Ferries covered to date for the city-created Rochester Ferry Co. More than one-third of the total was spent on fuel for the 774-passenger ship.
Mayor Robert Duffy decided Jan. 10 to end the Rochester-Toronto service after the operation lost $10 million in 10 months. Rochester Ferry was broke and Bay Ferries had covered an estimated $2.5 million in expenses at the time of Duffy's announcement. In a Jan. 12 letter to City Council, Duffy noted that and shutdown costs were "best estimates at this time" for shutting down the service.
A follow-up memo was sent to City Council members before their Jan. 17 vote authorizing the $9.4 million internal borrowing. The memo itemized more than $650,000 in additional, outstanding debts at various payment stages, resulting in the figure of nearly $3.2 million. That adds to a restructured $40.5 million debt used to buy the ship and pay most 2005 expenses.
Ferry board member Gary Walker, who also is spokesman for Duffy, said the $9.4 million estimate was conservative. The legislation built in a $500,000 contingency. The ferry board will be receiving detailed reports on a monthly basis of expenditures drawn from reserves. The board last met Jan. 24. The next board meeting has not been set.
BDSHARP@DemocratandChronicle.com