Dear HISCFA Members,

I would like to inform you about a conversation I had on Tuesday December 3 with Jessica Kines. Jessica is the contact person for the Department of State Police, DSP, who have control over ferry rates. Jessica is new to her position and has only been there for four months. She and her associates are empowered under Act No. 240 and House bill No.4807 to review the rates of water carriers such as Champion Auto Ferry. This legislation was sponsored by then Representative Dan Lauwers, now Senator Lauwers, and was enacted into law in 2017. It is important to recognize that they haven’t been regulating water ferry rates for very long and may not have faced challenges to their approval of rate increases before the current increase of our rates.

Jessica was very helpful and understanding of our situation. She also freely admits that this is all new to her and the DSP. They recognize that House bill No. 4807 leaves a lot to be desired and greatly favors the carrier. They are however bound to act in manner that follows that bill, they are after all the State Police.

The items we covered in our conversation included:

The fact that we are dealing with a private corporation that has a monopoly.

The fact that we have at this time no alternative means of getting from the mainland to the island and see no chance of one in the near future.

The fact that we are not involved in rate changes and aren’t made aware of them until after they are approved by the DSP. A very uphill process.

Our only resort is to appeal these rate increases to the DSP under Sec. 4 of HB 4807. We have been asked to file these complaints with the Attorney Generals office thereby involving another State agency in the process who will also have to become involved and informed.

Our current rates.

The increase in those rates both on a dollar basis, $2.00/trip and a percentage basis, 28% for ticket holders and $2.00/trip and 20% for day trippers.

The impact these new rates would have on our residents and our businesses.

The dollar increases in addition to the money paid currently for a working family of two: $2 x 30 days x 2 people =$120/mo.

The fact that many of our island residents are retired and living on a fixed income that doesn’t increase annually at 28%.

Other rate increases have been made that effect commercial trucking thereby increasing the cost of building and doing business on the island.

The fact that many of our elderly residents are frequently off the island for routine medical care.

The condition of the current infrastructure of the docks and boats.

Only one of two docks are in service on the mainland side and two of three docks on the island side. The third dock on the island side collapsed.

If the one dock on the mainland side fails, we will have no connection to the mainland.

There is no schedule of when repairs of the docks will be completed.

The reduction of load limits and type of vehicles that are permitted to use the ferry.

The impact these restrictions are having, with no change in site, on ongoing and new construction projects and other services to the island. Trucks are restricted to one rear axle and trailers to no more than two axles.

I asked if the $2/$2 fair increase could be changed to a $1 increase for ticket book holders and $3 increase for day trippers. Jessica said she would run the idea by her people.

I asked if she would summarize our discussion since at the time of our conversation I was driving to an appointment and couldn’t take any notes. Jessica said she would do that.

Jessica offered the following:

“The Michigan State Police (MSP) reviewed, vetted and approved Champion Auto Ferry’s proposed tariff based on section 460.207 of Act 246. The MSP also completed an onsite evaluation and has required Champion’s to submit a timeline for repairs and will be actively monitoring their progress.”

I was hoping for more but I understand the situation she is in. The above comments are therefore my recollection of our conversation.

The good news is that many islanders, in addition to HISFCA have reached out to the DSP, Senator Lauwers and others. We have their attention and I believe, based on other conversations I have had recently, that things will improve. The dialog has begun and the pertinent parties are working on solutions. For now, we are stuck with these increases. If there is a silver lining to this situation it is that these increases will witness to others, who might be interested in providing service to the island, that it will be more feasible for them to do so.

In the meantime, I urge everyone, to continue to RESPECTFULLY contact our representatives, these are the people we will have to work with in the future to solve our issues. If you choose to do so you may file a formal complaint with the Attorney General’s Office (link below). It is an election year and our 800 members and their families are voters and we have power.

Respectfully submitted,

George Covalle, President

https://secure.ag.state.mi.us/complaints/consumer.aspx