3:15 Task Force Decision Making Process & Work Plan M. Hodgins Steps in decision making process Framing questions Discuss and review Work Plan

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1 Guemes Island Ferry Schedule and Fare Policy Analysis Task Force Meeting #2 Friday, April 18, 2003 Anacortes City Hall Council Chambers 3:00 pm 5:30 pm A G E N D A 3:00 Welcome Glen Veal Meeting #2 overview Michael Hodgins Binders and updated Task Force Roster Follow up from Meeting #1 Comments/questions regarding Meeting #1 Summary 3:15 Task Force Decision Making Process & Work Plan M. Hodgins Steps in decision making process Framing questions Discuss and review Work Plan 3:45 Baseline Financial Outlook M. Hodgins Trendline Cost Outlook Funding issues and implications 4:15 Fare Policy Framework M. Hodgins Elements of a tariff policy Current fare structure Comparisons to other ferry operations 5:00 Fare Policy Problem Statement Discussion All 5:25 Next Steps and Next Task Force Meetings Friday, May 16 3:00 pm Location TBD Friday, June 20 3:00 pm Location TBD Friday, July 18 3:00 pm Location TBD 5:30 Adjourn Handouts Response to questions from Meeting #1 Updated Task Force Roster Meeting #1 Summary Questions Decision Making Process Task Force Work Plan Financial Outlook Fare Policy Framework Current Fare Policy Structure Fare Policies of other County-Operated Ferry Systems History of Fare Policies

2 SKAGIT COUNTY GUEMES ISLAND FERRY SCHEDULE AND FARE POLICY TASK FORCE RESPONSE TO QUESTIONS RAISED IN MEETING #1 Three questions were raised at the first meeting of the Task Force. Each of these questions is followed by a response. How is ridership data collected? Ridership data is tracked on the Trip Sheet or Daily Trip Log by the Purser each day for each portion of the round trip, including: o Time of trip o Number of cars and light trucks, trucks, passengers, trailers and other (motor home, motor cycle, school bus, etc.) The Operations Sheet tracks ticket, commuter book, and commercial account sales for each day. This data is what was used to generate the ridership data. Prior to April 2002, ridership data and ticket sales were collected on a single sheet labeled Guemes Ferry Operations. A new ticket collection system was instituted in March The Purser now provides a tear off ticket to each punch card user after the card has been punched. The customer then presents this tear off ticket to the Deckhand at boarding. This new system is designed to track the number of passengers traveling with a frequent user punch card per trip. Also, all other users are issued a ticket upon paying their fare. This ticket is then shown and given to, the Deckhand prior to boarding the vessel. What accounts for the fluctuation on MVFT revenues from year to year? Why does the revenue from this source drop to $24,000 in 2001? Counties are allocated a portion of state MVFT revenues. The allocation formula is based on several factors. The formula applies a maintenance and re-construction cost per mile to each county s road log. Ferries and bridges are accounted for in a similar fashion to derive a county s share of the statewide total of county operated and maintained roads, bridges and ferries. A special allocation is made excluding the ferry component. The difference between the two allocations is used to determine the attributable MVFT for ferries. This value is derived by subtracting the county allocation based on all facilities from the allocation without ferries. The base values in the road log are updated on a biennial basis and can be affected by changes in other counties road logs. The base values can also be affected by shifts in the costs of maintaining ferries. What costs are represented by the Miscellaneous category? Costs captured in the miscellaneous category include costs associated with supplies, small tools and equipment; rentals; uniforms and clothing; communications and advertising; and professional and contracted services. Guemes Ferry Task Force Meeting #2 Materials Page 2

3 Schedule & Fare Policy Analysis Task Force Guemes Island Ferry First Last Affiliation Address City Zip Phone Fax (H) Glen Veal Guemes Island Ferry Committee 4453 Edens Road Anacortes (W) Holly Bowman Guemes Island Ferry Crewmember Deane Drive Anacortes Phil Burton Burton Jewelers 620 Commercial Anacortes Carl Cady Guemes Island Ferry Committee 6185 Section Avenue Anacortes Jim Dugan Emergency Medical Service Provider 4603 South Shore Drive Anacortes Dixon Elder Guemes Island Ferry Committee 7573 Holiday Blvd. Anacortes Steve Flude Skagit County Public Works 1111 Cleveland Avenue Mount Vernon Marilee Fosbre Guemes Island Ferry Committee 7264 West Shore Drive Anacortes Steve Orsini Guemes Island Ferry Committee 4971 Guemes Island Road Anacortes Ron Panzero Guemes Island Ferry Crewmember th Street Anacortes Dan Pike Skagit RTPO 204 Montgomery Street Mount Vernon Sharon Schlittenhard Guemes Island Property Owners Association 7561 Holiday Blvd. Anacortes Brad Stevens SKAT 600 County Shop Lane Burlington Jackie Wittman Guemes Island Planning Advisory Committee th Street Anacortes (H) (W) Staff Resources Karen Cade Skagit County Public Works 1111 Cleveland Avenue Mount Vernon Steve Cox Skagit County Public Works 1111 Cleveland Avenue Mount Vernon Jim Martin Skagit County Public Works - Accounting 1111 Cleveland Avenue Mount Vernon kcade@co.skagit.wa.us scox@co.skagit.wa.us jmartin@co.skagit.wa.us Consultants Bonnie Berk Berk & Associates, Inc. 120 Lakeside Avenue, Suite 200 Seattle Michael Hodgins Berk & Associates, Inc. 120 Lakeside Avenue, Suite 200 Seattle Rick Kiesser Richard L. Kiesser th Anacortes Courtney Knox Berk & Associates, Inc. 120 Lakeside Avenue, Suite 200 Seattle bonnie@berkandassociates.com michael@berkandassociates.com jrkiesser@attbi.com courtney@berkandassociates.com

4 Guemes Island Ferry Schedule and Fare Task Force Meeting March 21, 2003 Present Task Force Members: Glen Veal, Chair Steve Orsini Dixon Elder Marilee Fosbre Carl Cady Howard Pellet Sharon Schlittenhard Holly Bowman Ron Panzero Jim Dugan Brad Stevens Dan Pike Jackie Wittman Steve Flude Others in attendance: Commissioner Munks, Bonnie Berk, Michael Hodgins, Rick Kiesser, Steve Cox, Win Anderson, and Karen Cade. Task Force Chair Glen Veal called the meeting to order at 3:00 p.m. The meeting began with Glen indicating the Task Force Mission is to look closely at the current financial and operational issues facing the Guemes Island Ferry and to make recommendations regarding fare and schedule policies that will ensure a sustainable future. He then moved onto introductions, where everyone in the room introduced themselves and identified the group that they represented and in some cases what they hoped to accomplish as part of the Guemes Island Ferry Task Force. Bonnie Berk reviewed the meeting agenda and explained that she would be facilitating the Task Force meetings. She mentioned that one of the operating principles is that the meetings would start and end on time and she would be helping to keep the group on schedule. Bonnie reviewed the preliminary schedule of Task Force meetings that calls for monthly meetings on the third Friday of the month. Meetings would be scheduled on an alternating basis between the Guemes Island Community Center and a location still to be determined in the City of Anacortes. She asked how well the starting time of 3:00pm worked for Task Force members. Some preferred earlier and some others expressed an interest in later. In the end, it was decided that the 3:00pm time was probably the best time for the majority of the group and future meetings would keep to this starting time. She also mentioned that Commissioner Munks would be joining the Task Force for this initial meeting and wanted to provide some opening remarks and perspectives on the Task Force charter. Unfortunately, he would be late due to another commitment, so she moved straight into the first agenda item. Bonnie reviewed the results of the Management Analysis effort that was undertaken over the course of last year, and which led to the creation of this Task Force. She reviewed the major elements of the study by providing a brief summary of each chapter in the final report as follows: System Overview and Policy Framework Guemes Island Ferry Schedule and Fare Task Force Meeting Page 1 of 4 March 21, 2003

5 Employee Interviews and Perspectives Customer Survey Comparative County Operated Ferry Survey Ferry Operations Assessment Ferry Schedule Assessment This is a very big task that is why the Task Force was needed and this has most to do with the growth of the Ferry. Management and Governance Assessment Ferry Committee Assessment Summary of Recommendations Bonnie then discussed the Management Analysis Report: Summary of Major Recommendations by highlighting the top eight focus areas identified during the study. Develop a Policy and Management Agenda to Steer the Ferry System. The Guemes Island ferry needs a new agenda for policy and management that reflects the fact that the operation has grown significantly over the past decade and is no longer a a little ferry service. Strengthen Ferry Staffing and Reporting to Address Ferry Challenges. Building on the idea of a new policy and management agenda, there were a number of specific recommendations targeted to staffing and reporting issues. Analyze Ferry Service Demand, Capacity and Cost, and Develop Level of Service Standards. Examination of service issues identified several challenges facing how Public Works in the years ahead to meet the growing needs of ferry riders. These challenges were a significant element in suggesting the need for further study and the creation of the Task Force. Develop a Collaborative Relationship with a Newly Chartered Ferry Committee. Several recommendations concerned the relationship between the ferry managers at Public Works and the Ferry Committee. It was noted that significant progress had already taken place on these issues. Focus on Communications with the Public. The report emphasized the need for better communications with the public including conducting regular community meetings, making Ferry Committee meeting summaries available, and to prepare written public materials periodically on significant ferry issues. This is another area where considerable progress is already evident. Develop Clear Policies and Procedures to Guide Daily Operations. Rework existing policy and procedures manuals into a more comprehensive and up-to-date operations manual that will guide daily operations. Institute Process Improvements, such as Pre-Ticketing to Speed Trip Processing. Consider options to improve the current operations, such as pre-ticketing to improve schedule performance and enhance the overall capacity of the system. It is expected that there will be several issues that will come up in the context of the Task Force work that will involve possible process changes. Resolve Outstanding Grievances and Put Management Systems in Place to Reduce the Number of Grievances Filed. Work with labor to resolve outstanding issues and work collaboratively to reduce the number of grievances in the future. Rick Kiesser, a member of the consulting team, will be working with Steve Cox and Public Works on the Operational Issues; the Ferry Committee, through regular meetings with Public Works will be addressing a number management issues; and the Task Force is charged with assessing a number of significant Policy Issues in the areas of schedule and fare policy. Asked if there were any comments/questions, there were none. Michael Hodgins, a member of the consulting team and the technical issues leader for the Task Force, reviewed the Task Force scope of work, beginning with the ferry schedule assessment. The Management Report identified a number of demand and operational issues that focused attention on the question of the adequacy of the current schedule to meet the needs of riders. The issues cited included the number of extra trips both during the schedule day and beyond the schedule day, cost impacts of overtime labor and the overall growth in ridership. These issues all seemed to suggest that the system is under some stress. Guemes Island Ferry Schedule and Fare Task Force Meeting Page 2 of 4 March 21, 2003

6 In terms of the fare policy issues, the primary focus would be on two key elements of the fare revenue situation: (1) how much revenue should be collected from users; and (2); how should the fare burden be distributed among different classes of users. These issues would be taken up in the context of the long-term financial sustainability of the service, taking into account both operating and capital needs. Several questions came up in the ensuing discussion including: What is meant by stress? Michael responded that stress meant situations where the current system has difficulty meeting the needs of users. This could mean long wait situations or extra trips to accommodate the needs of users. Is there a budget amount? At this time we do not know if there are the operating cost constraints. It is assessed as we go along with the Task Force addressing issues with both cost and revenue implications. Are there more demands during special times of the ferry schedules? It was explained that if you are in line on time and the boat is full, they will make special run to get people on/off the island. Has there been any discussion that the Guemes Island Ferry maybe too big for the County to operate? No. In addition, Steve Cox responded that the Washington State Ferry opposed to taking over any other financial burdens. Commissioner Munks arrived and joined the meeting. He thanked the Task Force members for volunteering for this important effort and said that he had no preconceived ideas but wanted a thorough review of current issues and recommendations for how the Guemes Island Ferry should address schedule and fare issues in the future. Michael then reviewed materials for the next agenda item including the Task Force Charge, Member Responsibilities and Operating Principles and the Preliminary Task Force Scope of Work. Michael described the Task Force s charge to analyze and discuss Guemes Island Ferry schedule and fare policy issues and options. Also to work as a group to achieve a consensus on an optimal set of recommendations to the Board of Skagit County Commissioners. The consensus approach was highlighted by saying issues would be discussed and analyzed until a general consensus emerges from the group. In the event that consensus is not possible then a vote would be used to determine appropriate direction. A simple majority of Task Force members in attendance would be necessary to carry forward a position. It was asked whether absentee votes would be taken or what other measures might be possible for member not in attendance. In cases where a controversial issue might require a vote, every effort would be taken to ensure that the key stakeholders were present when that vote was taken. It also highlights one of the reasons why regular attendance is an important part of the process. The issue of allowing alternates in cases where a member might be unable to attend was raised. The strong preference is to not allow alternates, but rather work with any member that was unable to attend a meeting to get them the materials they might need and keep them up to speed. Allowing alternates is generally not helpful in working toward a group consensus, since the issues and discussion will evolve over time and having different perspectives checking in and out of the process makes it difficult to achieve the group objective. The following were some of the other questions raised: Are there going to be any community meetings held on the Anacortes side? It was agreed this would be a good idea, more to come at a later date. How does the Task Force members know they are working on the right issues? The Task Force members will need to focus on the ideas that need to be addressed, then present to Board of County Commissioners to make sure you re on the right track. At the next meeting there would be discussion on how consensus building works and the process that the group will follow so everyone can participate properly. Michael then moved the final agenda item and presented material summarizing Ferry Ridership and Finances. Ferry ridership in Skagit County increased at an average of 2.3% per year over the last 21 years. While the ridership doubled, the general composition of ridership has remained substantially unchanged. Guemes Island Ferry Schedule and Fare Task Force Meeting Page 3 of 4 March 21, 2003

7 Vehicle trips increased 108% vs 93% for system-wide ridership. Frequent fare vehicle trips increased 8%, while the cash-only customers declined 8%. Passenger trips increased 76% since 1981 and the proportion of passengers using frequent user and other discounts increased 6%. Fare revenue nearly tripled with the ridership growth and periodic fare increases and vehicle revenues accounted for 75% of revenue in 1981 and have increased to 82% of fare revenue. The average revenue per vehicle increased 42%, full fare vehicle rates increased 76%, and frequent user rates increased 41%. The average revenue per passenger increased 13%, full fare passenger rates increased 33%, and frequent user rates increased 8%. Oversize vehicle rates increased 15%, realization rates for car full fare trips increased 34%, and the differential between oversize and full fare realizations has declined 1%. Guemes Ferry expenditures are covered by a combination of ferry fares, a deficit reimbursement from the State, a portion of the County s share of State fuel tax revenues (MVFT), and the County s Road fund. There are three Puget Sound counties that operate ferries and participate in the deficit reimbursement program. The three counties share a sum of $1 million every two years to cover no more than 50% of each county s net financial deficit. The following are some of the questions raised during this presentation. Why were the operation/maintenance expenses so much? Steve Cox indicated that they had to do an overhaul of both ferry engines along with timber replacement on the wing walls. These expenses seem to be increasing due to the age of the ferry and some parts becoming obsolete. The comparisons are figured by State fiscal year (July 1 June 30) not calendar years. Why is there only 8 years of data on the ferry costs and revenue? In 1993 there were data problems and the accounting system was upgraded. The question was asked whether it might be better to wait until the County had a new labor agreement to begin discussing these issues? Steve Flude indicated that there did not seem to be any issues that the Task Force would be addressing that had significant labor issues. In any event, the Task Force would be informed of any labor issues that might come up during discussion of potential recommendations and would have the opportunity to mitigate those concerns at that time. Also, there should be enough latitude in the contract to account for most potential options. Next meeting will be April 18 th at 3:00 p.m. location to be determined. Meeting adjourned at 5:45 p.m. Guemes Island Ferry Schedule and Fare Task Force Meeting Page 4 of 4 March 21, 2003

8 Decision Making Process Guemes Island Ferry Schedule and Fare Policy Analysis Task Force TIME STEP 1: Define the Problem STEP 2: Assemble Evidence STEP 3: Develop Alternatives STEP 4: Select Criteria STEP 5: Project Outcomes STEP 6: Confront Tradeoffs STEP 7: Make Decision STEP 8: Tell the Story Get Agreement on the Problem(s) Develop, Analyze and Evaluate Possible Alternatives Develop Draft & Final Recommendations Steps Involved in Each Task Force Meeting Prepare Draft Agenda Conduct Technical Analysis Produce & Distribute Meeting Materials Key Project Team Responsibility Task Force Responsibility Meeting: Discussion of Technical Analysis Prepare & Distribute Draft Meeting Summary Guemes Ferry Task Force, Meeting #2 Materials Page 1

9 Engaging the Community Guemes Island Ferry Schedule and Fare Policy Analysis Task Force Public input will be an integral part in developing the final package of recommendations Present Draft Recommendations to Board of Commissioners Produce Public Meeting Materials Attend Public Meeting & Participate in Discussion Prepare Summary of Public Comment Key Project Team Responsibility Task Force Responsibility Task Force Meeting #8 Consider Public Comment Present Final Recommendation & Public Comment to Board Guemes Ferry Task Force, Meeting #2 Materials Page 2

10 Framing Questions Guemes Island Ferry Schedule and Fare Policy Analysis Task Force Fare Policy Issues How much revenue should be/needs to be collected from users of the system? How should the revenue requirement be distributed among different classes of users? Schedule Policy Issues What are the policy objectives that the ferry schedule is trying to meet? What are the constraints (cost, facilities, capacity, operational considerations) that may limit flexibility in schedule design? How well is the schedule meeting its policy objectives -- both today and in the future? Guemes Ferry Task Force, Meeting #2 Materials Page 3

11 Guemes Island Ferry Schedule & Fare Policy Task Force Preliminary 2003 Work Plan March April May June July August September October Meeting 1 - Background - Management Analysis Report - Task Force scope, roles & responsibilities - Ferry ridership growth & finances (historic) Meeting 5 - Fare policy options (cont.) - Schedule policy options (cont.) Key Schedule & Fare Policy Task Force Meeting Public Meeting Board of Commissioners Meeting 4 Adoption of Policy or Plan Meeting 2 - Task Force Work Plan/Schedule - Decision making process - Financial outlook (Baseline) - Fare policy framework - Discuss fare policy problem statement Meeting 3 - Demand outlook - Current schedule practice and policies - Schedule issues & challenges - Discuss schedule problem statement - Develop recommended problem statements Present Problem Statement(s) Meeting 4 - Tariff structural options (oversize/ overwide, discounts, surcharges) - Schedule options l Cost implications l Level of service implications Meeting 6 - Schedule and fare policy options (cont.) - Capital implications of schedule options - Long-term financial outlook (updated) - Discuss schedule & fare policy recommendations Meeting 7 - Develop recommendations l Schedule Policy l Fare Policy Present Preliminary Recommendations Present Recommendations Collect Feedback Meeting 8 - Review comment - Discuss/alter proposal - Capital Funding Plan Present Final Recommendations 4 Get Agreement on Problem Develop, Analyze and Evaluate Possible Solutions Develop Draft & Final Recommendations Guemes Ferry Task Force, Meeting #2 Materials Page 4

12 FINANCIAL OUTLOOK DISCUSSION DRAFT Review of Guemes Ferry Funding & Objective of Financial Outlook > Ferry expenditures are covered by a combination of ferry fares, a deficit reimbursement from the State, and a County contribution from the County's Road fund (MVFT & other RF sources): Total Revenues = Ferry Fares + Deficit Reimbursement + MVFT "for ferries" + County Road Fund Ferry Fares Deficit Reimbursement MVFT "for ferries" County Road Fund Revenue required from ferry fares are based on a formula developed in 1989 and included in County Resolution Deficit Reimbursement is a State funded program that distributes State gas tax to County-operated ferries. The program is administered by the Local Programs Division of WSDOT. The MVFT "for ferries" is a portion of the County's distribution of State gas tax. The State-derived formula "attributes" a share of the County's gas tax to ferry operations based on the ferry's share of all County roads. The Road Fund is the County's source of funds for transportation services and improvements. The principal sources of funding include the road levy, private harvest timber tax, leasehold excise tax, and the County's allocation of State MVFT revenues. > Objective of a Baseline Financial Outlook 1. Provide a "trendline" assessment of future costs and revenues 2. Identify implications of trends on current funding structure and policies 3. Provide context for "problem statement" discussion Guemes Ferry Task Force Meeting #2 Materials Page 1

13 FINANCIAL OUTLOOK DISCUSSION DRAFT Trendline Projection of Ferry Costs > Future costs are estimated based on historic trends and assuming a continuation of existing service levels. > Cost outlook does not represent a "budgeted" level of service or specific operating commitments. > These estimates of potential future costs are for the purpose of identifying Task Force issues only. > During the Task Force process there will be opportunities to evaluate schedule and operational options that will likely have a material impact on future costs (may increase or decrease). 3,000 2,500 $ in Thousands 2,000 1,500 1, Overhead Dock Vessel , ,197 1,255 1,180 1,451 1,264 1,554 1,354 1,665 1,451 1,784 1,554 1,911 1,665 2,047 Vessel Dock Overhead Notes: > Assumes a continuation of the 4th crew member to address State Auditor requirements. > Maintenance schedule and costs (vessel and docks) are based on information contained in the Capital Facilities Plan. > General inflation is assumed to be 3.5% per year. Guemes Ferry Task Force Meeting #2 Materials Page 2

14 FINANCIAL OUTLOOK DISCUSSION DRAFT Overall Financial Outlook > Using the trendline cost projection and carrying forward current programs and policies would result in the following funding outlook. 3,000 $ in Thousands 2,500 2,000 1,500 1, County Road Fund ,194 Deficit reimbursement MVFT Ferry receipts Ferry receipts MVFT Deficit reimbursement County Road Fund Notes: > Fare receipts are based on the application of Resolution #11939 to the cost projections. > Ferry deficit reimbursement is based on the smaller of 50% of net deficit or 40% of total available State funding. It is assumed that the deficit reimbursement program will remain and will continue to be funded at a total of $1million per biennium. > Attributable MVFT is based on a trendline projection of total County MVFT revenues and a constant 4.3% ferry share. (the 4.3% attributable share is based on the actual historic share for the period ). Guemes Ferry Task Force Meeting #2 Materials Page 3

15 FINANCIAL OUTLOOK DISCUSSION DRAFT Funding Issues and Implications > Preceeding analysis suggests a number of potential policy issues for Task Force consideration Distribution of Funding Responsibility Ferry receipts per rider 100% % % County share 41% 46% Deficit reimbursement 21% 12% Ferry receipts 38% 42% > Without legislative action to increase Ferry Deficit Reimbursement funding, burden will increasingly shift to local funding responsibility (users and the all County taxpayers). > Application of Resolution #11939 would result in higher fare revenue requirements over time. > Using the CFP ridership projection, achieving these higher fare requirements would seem to require regular fare policy changes. Would no longer be able meet higher revenue targets with ridership growth alone. > Higher County share will be necessary also, even while the County's primary Road Fund source (property tax) will be constrained as a result of Initiative 747. > Analysis does not include any costs associated with service expansion or new capital improvements. Any new costs above this "trendline" scenario would likely need to come from local sources. Guemes Ferry Task Force Meeting #2 Materials Page 4

16 SKAGIT COUNTY GUEMES ISLAND FERRY SCHEDULE AND FARE POLICY TASK FORCE FARE POLICY FRAMEWORK Context: A Public Service Skagit County provides a subsidized transportation service to and from Guemes Island. Where a private service provider might charge as much as possible, public service providers must meet public service parameters that are based on equity or what is perceived to be fair. Because the service is subsidized, fare revenues are not required to generate 100% of the costs of providing the service. Fare policies are designed to distribute responsibility for covering remaining costs in a fair and equitable manner. Fare Policy Structure Base Fare establishes the rate of travel for each mode of travel from which all other fares are derived. On the Guemes Island Ferry, these fares are often paid in cash. In addition, most commercial account customers pay the base fare when they are billed at the end of each month. Discounts are provided to customers to promote behavior or to certain groups, such as youth, seniors or disabled passengers. Depending on the fare media, discounts may have an added efficiency benefit at the point of sale. Pre-paid frequent user passes can reduce cash handling at the ferry dock reducing through put time. Peak/Non Peak. During high-use times when space is at a premium, the service provider may increase rates. A peak charge for passage often corresponds to a seasonal peak in ridership. In the San Juan Islands, WSF has instituted day-of-week pricing in addition to the seasonal surcharge. Fare pricing at BC Ferries corresponds to hourly peaks in travel, as well. Size Considerations. Vehicle fares generally have some relationship to the space that the vehicle will occupy on board the vessel. Larger vehicles are assessed higher fares and smaller vehicles, like motorcycles, are charged less than the base car and driver fare. In some cases, vehicles that are twice the width or length of the average vehicle may be charged twice the base car & driver fare. Guemes Ferry Task Force Meeting #2 Materials Page 1 of 10

17 SKAGIT COUNTY GUEMES ISLAND FERRY SCHEDULE AND FARE POLICY TASK FORCE CURRENT FARE STRUCTURE Fare Category Base Fare Cash Fares (Summer surcharge applies) Car and Driver Fares (Vehicle, trailer and/or cargo overhang length under 20 ) $5.25 Over 20 and under 25 $7.00 Over 25 and under 30 $9.00 Over 30 and under 35 $10.50 Over 35 and under 45 $14.00 Over 45 and under 55 $18.00 Over 55 and under 65 $25.00 Over 65 (base fare + $0.50 per foot over 65 ) $25.00 Summer Surcharge ($1.00 increase on base car and driver fares from May 1 st to September 1 st ) $1.00 Motorcycle and Driver $2.00 Trailers 12 or under $3.50 Trailers over 12 and under 20 $5.25 Trailers over 20 (base fare + $0.50 per foot over 20 ) $5.25 Adult Passenger Fare $1.25 Child Passenger Fare (age 6 through high school) (Fares are collected on weekends, school breaks and in the summer) Child on school bus Child under 6 $0.50 No charge No charge Permanently Disabled (12 month pass) $25.00 Frequent User Fares 25-trip Vehicle (under 20 ) and Driver (valid 120 days) $ trip Vehicle (under 20 ) and Driver (valid 120 days) $ trip Adult Passenger (valid 365 days) $ trip Child Passenger (valid 365 days) $6.25 Rates for Special Passage SKAT vehicle for handicapped transport Medical emergencies No charge No charge Charter after hours trip (base Charter fare + base cash fare) $ Each subsequent Charter trip in 4-hour period (base Charter fare + base cash fare) $40.00 Standby after 2 hours (base fare per hour) $50.00 After last scheduled trip (base charge + base fare) $50.00 Trip between regularly scheduled runs (base charge + base fare) $50.00 Guemes Ferry Task Force Meeting #2 Materials Page 2 of 10

18 Other Fares Charter outside of normal operating hours. Any person or group may charter the M/V Guemes and crew to make a special, non-scheduled ferry run outside of normal operating hours. A regular ferry crew is required. These trips cost $175 per run (plus regular vehicle and passenger fares) with a standby charge of $50 for the ferry to wait up to two hours if a return trip is needed. Charter during regular operating hours. The M/V Guemes may also be hired for a special run between regularly scheduled runs for $50.00 plus regular vehicle and passenger fares. Trucks carrying flammable liquids are exempt from special run charges during regular operating hours due to laws requiring isolation of these vehicles from other vehicles on the ferry for safety purposes. Emergency. Medical emergency runs are made whenever necessary and are provided by the County at no charge. Charge Accounts are established for convenience of commercial customers. For the Guemes Ferry, there are no minimum use requirements, administrative fees or price advantages for charge account customers. The summer surcharge is applied to ferry users traveling on charge accounts. Customers are billed at the end of each month. The School District is also a charge account customer. School bus fares are billed at a flat rate each month based on the number of school days in that month. Students on school buses are not assessed fares for passage. If the school bus is traveling on a special run, the charter fee applies. Guemes Ferry Task Force Meeting #2 Materials Page 3 of 10

19 SKAGIT COUNTY GUEMES ISLAND FERRY SCHEDULE AND FARE POLICY TASK FORCE ACTUAL AND INFERRED CURRENT FARE POLICY STRUCTURE PASSENGER FARES Discounts. Standard discounts for senior and disabled passengers traveling on cash fares are not offered. The rate of discount varies among the frequent user passenger groups. Frequent User Youth The frequent user fare for adult passengers is $0.75 or a 40% discount off the base fare. The youth (ages 6 through high school) fare is $0.50 or a 60% discount off the base adult passenger fare. Youth under the age of 6 travel free of charge. Frequent user fare for youth is $0.25 or 50% off the base fare and 80% off the base adult passenger fare. Senior There is no discount offered to seniors paying cash fare. Most other ferry systems and transit providers offer a discounted rate of travel for seniors. Disabled Passenger There is no discount offered to disabled passengers paying cash fare. Most other ferry systems and transit providers offer a discounted rate of travel for disabled passengers. A 12-month pass is available for disabled passengers for $ A disabled passenger using the pass would need to make more than 20 trips per year to travel at the base fare and more than 33 trips per year to travel at the frequent user discounted fare. Surcharges. The peak season surcharge does not apply to passenger fares or customers traveling with frequent user cards. VEHICLE FARES Discounts. Guemes Island Ferry offers discounts to frequent users. The rate of discount offered is higher than other county-operated ferries. Frequent User Frequent user fare for travel on 25-trip frequent user card is $1.85 or 65% discount off the base vehicle and driver fare. During the summer season, this discount is increased to 70% of the cash fare. Frequent user fare for travel on 13-trip frequent user card is $2.60 or 50.5% discount off the base vehicle and driver fare. During the summer season, this discount is increased to 58% of the cash fare. Guemes Ferry Task Force Meeting #2 Materials Page 4 of 10

20 Surcharges Peak Season The peak season surcharge does not apply to motorcycle or trailer fares, or customers traveling frequent user cards. The $1.00 surcharge represents a 19% increase on the base cash or charge customer car and driver fares. As vehicle size increases, the relative summer surcharge decreases. Vehicle & Driver Fare Category Base Fare Base Summer Fare Effective Surcharge Rate Car and Driver Fare (under 20 ) $5.25 $ % Over 20 and under 25 $7.00 $ % Over 25 and under 30 $9.00 $ % Over 30 and under 35 $10.50 $ % Over 35 and under 45 $14.00 $ % Over 45 and under 55 $18.00 $ % Over 55 and under 65 $25.00 $ % Size Considerations The cash fare increases for every five foot increment over 20 feet. The rate of increase, however, is inconsistent for each increment. Vehicle & Driver Fare Category Base Fare Rate per Foot Incremental Rate per Foot Car and Driver Fare (under 20 ) $5.25 $0.26 $0.26 Over 20 and under 25 $7.00 $0.35 to $0.28 $0.35 Over 25 and under 30 $9.00 $0.36 to $0.30 $0.40 Over 30 and under 35 $10.50 $0.35 to $0.30 $0.30 Over 35 and under 45 $14.00 $0.40 to $0.31 $0.35 Over 45 and under 55 $18.00 $0.40 to $0.33 $0.40 Over 55 and under 65 $25.00 $0.45 to $0.38 $0.70 Over 65 (base fare + $0.50 per foot over 65 ) $25.00 $ $0.50 each additional foot over 66 $0.50 Guemes Ferry Task Force Meeting #2 Materials Page 5 of 10

21 Trailer fares are assessed in a different fashion resulting in a 20% price break for a customer traveling with a trailer of 12 feet or less rather than as a vehicle over 30 and under 35 feet. Cash fares are subject to the summer surcharge, trailer fares are not. Trailer Fares Base Fare Rate per Foot Incremental Rate per Foot Trailers 12 or under $3.50 $0.29 $0.29 Trailers over 12 and under 20 $5.25 $0.44 to $0.26 $0.22 Trailers over 20 (base fare + $0.50 per foot over 20 ) $5.25 $ $0.50 each additional foot over 21 $0.50 Fares do not take into account over wide vehicles. Base fare for a motorcycle is $2.00, representing a 62% discount off base car and driver cash fares and 68% in summer. The base fare implies that approximately two and a half motorcycles occupy the same space as a vehicle. Guemes Ferry Task Force Meeting #2 Materials Page 6 of 10

22 SKAGIT COUNTY GUEMES ISLAND FERRY FARE POLICIES OF OTHER FERRY SYSTEMS CONTEXT Skagit County Guemes Island Ferry Whatcom County Lummi Island Ferry Pierce County Ferry Total Operations & Maintenance Cost (Year) $1,192,723 (FY02) $1,235,581 (2002) $1,854,000 (2001) Fare Revenues (Year) $395, 790 (FY02) $637,960 (2002) $1,116,000 (2001) Fare Box Recovery (Target) 31% (88% crew wage/benefits + 100% insurance + fuel less MVFT + deficit reimbursement) 52% (55%) Pricing is reviewed annually Terminals/parking lots not included 60% (80%) established 2001/2 Determine pricing with average values for 2 to 3 years to account for annual variation Annual Ridership (Year) RT 213,964 (2002) 363,973 (2001) 191,000 (2002) Trip Length (Time) 10 min. to Ketron Island 5 min. to Guemes Island 5 min. crossing to Lummi Island 20 min. to Anderson Island Capacity 99 passengers 22 vehicles 100 passengers 18 vehicles 250 passengers 54 vehicles (assume 10 by 18 ) Notes: Total Cost for Skagit County includes overhead but not include insurance, which is covered by County s General Fund; capacity per CFP. In Pierce County, contracted services provide daily operation - ferry boats & ticket sales. FARE COMPARISON PASSENGER FARES Round Trip (RT), Base Fare Frequent User Discount Effective per trip price (discount) Skagit County Guemes Island Ferry 25-trip pass at $18.75 $0.75 (40.0%) Whatcom County Lummi Island Ferry Pierce County Ferry $1.25 $1.00 $ trip pass at $23.00 $0.92 (8.0%) Duration 365 days after issue Until punches are used fare change increment may be paid in cash Transferability No restriction If traveling with two other people, pass may be punched three times Youth Fare (discount) Age definition $0.50 (60.0%) Age 6 to high school Free: under 6 No special single trip cash fare Free: under 12; in school year 5-trip pass at $10.50 $2.10 (36.4%) 45 days from purchase One ticket per trip (ticket is removed from booklet by Ferry employee) $2.00 (39.4%) Age 5 to 18 Free: under 6 Guemes Island Ferry Task Force Meeting #2 Materials Page 7 of 10

23 FARE POLICIES OF OTHER FERRY SYSTEMS (CONTINUED) Youth Frequent User Fare Effective per trip price (discount) (rate compared to base youth fare) Skagit County Ferry Whatcom County Ferry Pierce County Ferry 25-trip pass at $ trip pass at $15.00 No pass $0.25 (80%) $0.60 (40%) (50%) (N/A) For: older FT student Senior Fare (discount) No special single trip cash fare No special single trip cash fare $1.65 (50%) Senior Frequent User Fare No pass 25-trip pass at $15.00 No pass Effective per trip price (discount) $0.60 (40%) Disabled Fare (discount) No special single trip cash fare No special single trip cash fare $1.65 (50%) Disabled Frequent User Fare Effective per trip price (discount) 12-month pass at $ trip pass at $15.00 $0.60 (40%) No pass Surcharge Summer surcharge is not applicable No summer surcharge Summer surcharge is not applicable Bicycle No charge $1.00 per bicycle No charge VEHICLE & DRIVER FARES (RT, Base Fare) Frequent User Discount Effective per trip price (discount) $5.25 under trip pass at $46.25 $1.85 (64.8%) $4.00 under 8,001 lbs. 25-trip pass at $92.00 $3.68 (8.0%) $11.50 up to and under 20 5-trip pass at $46.00 $9.20 (20.0%) Additional frequent user pass Effective per trip price (discount) 13-trip pass at $33.80 $2.60 (50.5%) 10-trip pass at $37.00 $3.70 (7.5%) Quarterly pass available at $ Expiration 365 days after issue Until punches are used fare change may be paid in cash Transferability Used by person to whom card is One vehicle per trip; card may be issued, spouse, parent or child shared Senior/Disabled Fare Effective per trip price (discount) Sr./Disabled Frequent User Fare Effective per trip price (discount) Surcharge Peak season definition 45 days from purchase One ticket per trip (ticket is removed from booklet by Ferry employee) No special single trip cash fare No special single trip cash fare $9.20 (20%) No Senior pass; 12-mo. disabled pass at $25.00 $1.00 summer surcharge May 1 through September 1 25-trip pass at $40.00 $1.60 (60%) No summer surcharge No pass 20% summer surcharge May 15 through September 15 Applies to: All cash and charge customer car & driver and oversize fares All cash vehicle driver (including motorcycle and senior/disabled fare) Guemes Island Ferry Task Force Meeting #2 Materials Page 8 of 10

24 FARE POLICIES OF OTHER FERRY SYSTEMS (CONTINUED) Size Considerations Increment measured Skagit County Ferry Whatcom County Ferry Pierce County Ferry Length is primary consideration Each 5 increment over 20 car & driver fare; over 45 shift to 10 Weight is primary consideration From 8,001 to 20,000 lb., 20,001 to 36,000 lbs.; and over 36,000 lbs. Length is primary consideration Each 10 increment over 20 car & driver fare Other length-based fares Surcharge: trailer Rates under 12 ; 12 to 20 ; over 20 Surcharge: trailer, bus, motor home Rate under 16 ; 16 to 30 ; over 30 None Charge Over 65 (base fare + $0.50 per foot) Per foot increment $0.26 to $0.70 Over 30 flat rate Per foot N/A Over 80 flat rate Per foot increment $0.90 to $1.00 Width-based fare/surcharge Motorcycle Fares Motorcycle/driver to vehicle/driver fare ratio Motorcycle Frequent User Discount Effective per trip price (discount) None $2.00 motorcycle/driver 2.62 to 1 Any vehicle, bus, motor home or trailer occupying more than 1 ferry lane is charged a 50% surcharge $3.00 motorcycle/driver 1.33 to 1 No frequent user pass 25-trip pass at $69.00 $2.76 (8% off motorcycle fare) None $6.00 motorcycle/driver 1.91 to 1 5-trip pass at $18.00 $3.60 (40% off base motorcycle fare) Guemes Island Ferry Task Force Meeting #2 Materials Page 9 of 10

25 SKAGIT COUNTY GUEMES ISLAND FERRY HISTORY OF FARE POLICIES Since 1979, the County Board of Commissioners has passed 14 Resolutions pertaining to fares and fare policy. The following table briefing describes the purpose of each Resolution. Date January February March Resolution Fare Policy Issue Discussed Established formula for deriving fares June Raised special trip fares June December 1982 December January February February March Fares and annual average State gas tax revenues (for Ferry operations) should cover 85% annual average operation costs (including maintenance of boat and dock facilities) Established fares using annual average ridership data to derive rate from revenue target. Established special trip fares (after hours charter, fuel truck, medical emergencies, etc.) Raised car & driver fares by $0.70; passenger fares by $0.15 Raised commuter car & driver fares by $0.10; passenger by $0.10 per trip Raised special trip fares Revised formula for deriving fares Fares, State gas tax revenues (for Ferry operations), and Ferry deficit reimbursement should cover 100% of crew wages, benefits, fuel and insurance Established policy for issuing frequent user passage cards Rescinded Resolution Changed car & driver card to 90-day expiration; passenger remains one year Raised car & driver fares by $0.30; passenger fares by $0.05 Raised frequent user car & driver fares by $0.10; passenger by $0.05 per trip Established policy regarding purchase, use and replacement of frequent user cards Established 13-trip frequent user car & driver card Established current formula for deriving fares Fares, State fuel tax (for Ferry operations) and Ferry deficit reimbursement should cover 88% of Ferry crew wages/benefits and 100% of fuel and insurance Raised car & driver fares by $0.70 and car & driver frequent user fares by $0.25 per trip Established $1.00 peak season surcharge on car & driver cash fares July Applied peak season surcharge to motor home fares August Rescinded and Raised car & driver fares by $0.05; passenger fares by $0.05 Changed car & driver card to 120-day expiration; passenger to 165-day expiration Regular Fares: Frequent User Rates: Car & driver $5.25 Car & driver ($46.25/25 trip) $1.85 Passenger $1.25 Passenger ($18.75/25-trip) $0.75 April A Established fare for permanently disabled passengers Guemes Island Ferry Task Force Meeting #2 Materials Page 10 of 10