Aqua Express Keeps Kingston-Seattle Foot-Ferry Route

Kitsap Sun - Ed Friedrich

Wednesday, July 18, 2007

Aqua Express, banking on Kitsap Transit passing a passenger-ferry election in the next couple of years, will keep the rights to the Kingston-Seattle route despite not running a boat on it since 2005.

State Utilities and Transportation staff approved a fourth "temporary discontinuance of service" Tuesday — through June 4, 2008. Aqua Express sought two years and received one, with the understanding that it would probably ask for another later. The commission is expected to approve the staff recommendation next week.

UTC officials wrote in late May that the company hadn't demonstrated a clear plan for resuming service anytime soon, and didn't deserve another extension. Two factors changed their minds:

Nobody else has the money and expertise to do it;

The only entity that might get the money to subsidize Aqua Express or anybody else appears to be Kitsap Transit, but not for at least awhile.

Aqua Express operated the route with no subsidy from January 2005 to October 2005, and lost more than $900,000. Gas prices spiked and the ferry attracted only half of the 600 riders per day that owners expected.

"The conclusion that a public partner would be necessary to continue service was reached relatively quickly," the UTC settlement says.

The extension comes with two stipulations. Aqua Express can't object to the UTC giving the rights to the route to somebody else if a viable candidate steps up, and Aqua Express must file a progress report in January.

Passenger ferry experiences have shown that private operators need help with capital costs plus about a 40 percent subsidy for operations. Kitsap Transit would've provided that for Aqua Express had voters not rejected a local sales tax increase in February. Now the transit agency is searching for a new approach.

The course it's pursuing, says the settlement, "is amendments to key state legislation to allow for either the creation of a second Public Transportation Benefit Area Authority (PTBA) of a smaller scale than current PTBAs or a separate district under some other name or set of statutes that would be able to pass an election to secure the necessary public funding.

"Support from key state legislators has been promised and KT believes that in either the 2008 or 2009 state legislative session such legislation will be enacted, with the prospect of a positive election outcome in early to mid 2009."

"There's a lot of work to be done, but (the settlement) leaves the door open to get through and get it done and not lose the terminal facility that exists in Kingston," said Richard Hayes, Kitsap Transit executive director. "That's the really big thing. That's a couple million-dollar setback if that goes away."

The extension allows Aqua Express to keep its facilities in place and preserves its partnership with Kitsap Transit.

"I'm really impressed with that because it's a new and odd animal and for them to do this is a really nice attitude," Hayes said.

UTC spokesman Tim Sweeney said it'd be different if Aqua Express was blocking another company from operating.

Kingston Express, a group of former Aqua Express riders, have a plan to run the route as a co-op, but needs money. The Port of Kingston has requested a $3.5 million federal grant — which Kingston Express wrote — for a boat. There would be a selection process and the money would go to the best operator.

Nels Sultan, Kingston Express manager, said he is "neutral" on the UTC settlement.

"It's no legal barrier to us, but it does tend to bolster the Kitsap Transit position that everyone's got to wait a few years until they get funding," he said. "I think that part's harmful."

Aqua Express Chairman John Blackmon couldn't be reached Wednesday.

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