Vineyard SSA Governor Loses Battle to Impose $7 Million Fee on
Nantucket

By JULIA WELLS
Gazette Senior Writer

Vineyard Steamship Authority governor J.B. Riggs Parker lost a
skirmish yesterday in his battle against Nantucket when the Falmouth and
Nantucket boat line governors voted to eliminate a complicated cost
allocation policy that could have led to ruinous fare increases for
Nantucket in coming years.

"It's time to put this behind us, develop a new policy
and go forward," declared Falmouth boat line governor Galen M.
Robbins.

"I am opposed to giving up the past. I will vote against
giving up the past," declared Mr. Parker.

"You are pitting the two Islands against each other which is a
very, very bad thing," Nantucket governor Grace S. Grossman told
Mr. Parker.

The vote was 2-1 in favor of adopting a modified policy to replace a
policy adopted by the boat line board three years ago. Under the old
policy the board had agreed to "recapture" some $7 million
in revenues for the Vineyard from a period when the revenues from the
Nantucket route did not cover the cost of service. The revenue recapture
was supposed to take place whenever there is a rate increase.

The policy has become an ongoing bone of contention between
Nantucket and the Vineyard, with Mr. Parker rigidly backing the old
policy, even though the boat line's longtime treasurer, Wayne
Lamson, has recommended repeatedly that the policy be changed.

At the monthly meeting at the Agricultural Hall in West Tisbury
yesterday morning, Mr. Lamson again urged the board to modify the
policy.

"This cost allocation is really not an exact science, and we
need to have some flexibility," said Mr. Lamson, who is also now
the acting general manager at the SSA.

The cost allocation policy came up during a discussion about a draft
$60 million operating budget and corresponding $3.1 million rate
increase for the coming year.

The budget and the rate increase will be voted on in October.

Mr. Lamson asked the board for some direction on the cost allocation
policy, noting that it will affect the final operating budget and rate
increase request.

"If we were to go back and recapture that [$7 million], would
that create a significant harm in Nantucket's ability to
pay?" Mr. Robbins asked. Mr. Lamson said it could. "I think
what Wayne has outlined is the policy that the authority should live
with," Mr. Robbins said.

It was the first meeting for Mr. Robbins, who proved to be both a
quick study in boat line affairs and a moderating influence in the
brittle relations between the Nantucket and Vineyard board members.

The new cost allocation policy will eliminate any revenue recapture
unless the difference between the cost of service and revenues is more
than two per cent on each route.

Mr. Lamson said the vote yesterday will result in some change to the
proposed rate increase for the coming year.

"This was kind of a compromise - it doesn't
eliminate the catch-up altogether, it just means that Nantucket has to
make sure going forward that the revenues are meeting the cost of
service," Mr. Lamson said.

In other business, boat line governors also voted to put out a
request for proposals for private contractors who want to bid on freight
service between New Bedford and the Vineyard next year.

A pilot freight program is nearing the end of its second year; the
service is provided by a Florida-based shipping company named Seabulk
International Inc., formerly Hvide Marine. The SSA paid $1.6 million to
Seabulk to operate the service this year. Last month SSA management had
recommended that the boat line operate the freight service itself in the
coming year, using a spare freight vessel.

Now management has taken a slightly different tack, recommending
that the boat line put out an RFP for private carriers before it makes a
final decision about the freight service. The RFP recommendation was
triggered after the owner of the Seabulk made a verbal offer to run the
freight service next year at no cost to the authority.

At the outset of the meeting yesterday, Chilmark selectman Warren
Doty recommended that the boat line run the service itself and not issue
an RFP.

But the boat line board had another view.

"I think we have to go out with an RFP; as management has
pointed out, it is possible that it would be less expensive for us and I
think we need to look at it," said Mrs. Grossman.

"I think it is healthy to go out for an RFP - then we
can look at both options side by side and make an educated decision. I
think we need a little more information and the RFP will get us
that," said Mr. Robbins.

"Is there a down side that you see?" Barnstable member
Robert O'Brien asked Mr. Lamson.

"No. I think it gives us time to come back at the next meeting
- which is just three weeks away - with all the
information," Mr. Lamson replied. "There are other issues
besides financial, but we are recommending that we do go forward with
the RFP," he added.

After the RFP was approved Mr. Parker issued a heartfelt speech
about the value of establishing ferry service from New Bedford.

"I believe very strongly that the authority needs New Bedford.
I think we have to accept that and I think that's very important.
We can't meet our obligations without New Bedford," he said.
He continued: "We're going to have to deal with it,
we're going to have to face facts and my suggestion is that we get
real and deal with it. At the moment we are trying to grapple with a
very delicate negotiation in New Bedford [with Ralph Packer], and if it
fails, Vineyard Haven will see 8,000 more trucks and I think that is
intolerable and we have to do what we have to do to avoid it.

"New Bedford doesn't need us, we need New Bedford and
that is where we should go."

Mrs. Grossman replied: "I think that the economy is going to
dictate what is going to happen on the Islands in the future - I
think we have to assess the situation as we see it and we have to be
very careful what we plan and what we do and I'm for being a
little bit more conservative than Mr. Parker. We have to be careful
before we commit to a third port."

Mr. Parker replied: "Even if we have a total collapse in the
economy, I believe in America, it will come back and I don't think
we can look forward and plan with the idea that people aren't
going to reproduce and come to the Islands, because they are reproducing
right now and they will come."

Mr. Robbins called for a more dispassionate approach. "I see
that we are in a situation of fear and reprisal with all of this and
that troubles me. Instead of discussing delicate negotiations and what
they might bring, I think we should be discussing things like how we can
get a handle on the fact that people are going to be migrating from
Woods Hole to New Bedford [in a passenger ferry service]. Do we know
that we are going to pull people off and go to New Bedford? My sense is
no, and I do think there is going to be an incremental increase and we
are going to be carrying more people - and that is going to have
an impact."

At the end of the meeting Daniel Flynn, a Dukes County commissioner,
attacked Mr. Robbins for his vote on the cost allocation policy.

"I can't tell you how disappointed I am in this meeting
- the Steamship Authority board of governors has got to get up to
a higher level than what I saw today," Mr. Flynn said. Telling Mr.
Robbins that he was "not up to speed" on boat line issues,
Mr. Flynn said: "Your action today is very parochial and it is
causing me to rethink how I feel about our commitments to the town of
Falmouth."

Mr. Robbins answered Mr. Flynn in blunt but respectful tones.
"We have a treasurer who has worked for this authority for 30
years and for you to sit there and tell me I am not up to speed -
well, I disagree. I voted on this policy because it was based on a
recommendation from a person who is a trusted and respected member of
this organization - and I happen to agree with it," Mr.
Robbins said.

"We are one authority, and this warring between Nantucket, the
Vineyard, Falmouth and Barnstable - that is what I cannot
tolerate," Mr. Robbins said.

Roger Wey, an Oak Bluffs selectman and also a county commissioner,
applauded Mr. Robbins.

"I disagree with my colleague [Mr. Flynn] - today we
acted like one authority and we have to keep on acting this way. We need
to work as a team," Mr. Wey said.