Boat Line Modifies Port Towns Funding

Cuts Former Annual Reimbursement, Citing New Passenger Surcharge;
Tisbury Selectman Objects

By ALEXIS TONTI

In a reversal of Steamship Authority policy, senior managers at the
boat line notified Island port towns this week they are withdrawing an
annual reimbursement for police assistance and traffic control.

SSA chief executive officer Fred C. Raskin said the revenue now
collected by the towns from a new ferry passenger surcharge relieves the
boat line of its former obligation.

"This is not intended to be general revenue. This technically
is to be used in connection with serving, supporting and accommodating
the Steamship Authority," said Mr. Raskin. As such, he said the
new fee covers police services in lieu of the former reimbursement.

But selectmen in Oak Bluffs and Vineyard Haven were caught off guard
by the move, which will strip them, collectively, of nearly $70,000 in
expected compensation.

"The town is going to object vociferously to this apparently
unilateral decision by Mr. Raskin," declared Tristan Israel,
chairman of the Tisbury board of selectmen. "This was not the
intent of the [ferry surcharge] legislation."

Since Jan. 1 passengers traveling on ferries between the Cape and
Islands have been charged a 50-cent fee that is tacked on to the price
of each one-way passenger trip. The fee, which applies to the Steamship
Authority and private ferries, is being collected by ferry operators and
will be paid to the town where the trip originates.

State legislation requires that the money be earmarked for public
safety, harbor services and port infrastructure improvements.

It is expected to generate as much as $200,000 for Oak Bluffs and
$300,000 for Tisbury this year.

The SSA policy of reimbursing the two towns for police services
dates back to the era when Armand Tiberio served as general manager of
the boat line. In recent years, Oak Bluffs has received $19,000 annually
and Tisbury more than $30,000 annually.

The boards of selectmen in Oak Bluffs and Tisbury both received
letters this week stating the boat line's intent. The notice came
on the eve of the annual town meeting in Vineyard Haven, when residents
traditionally authorize the town to accept this payment from the
authority. And in fact on Wednesday night, voters unanimously approved
an article to collect $50,000 from the boat line.

"I am extremely disappointed Mr. Raskin didn't come and
talk to the selectmen before issuing this dictate from on high,"
Mr. Israel said.

Both Mr. Raskin and Vineyard boat line governor Kathryn A. Roessel
said it is clear that the services previously paid for by the boat line
now fall under the provisions of the legislation.

"The towns think they are winning a lottery. But [the fee] is
not a windfall. They get it for a reason, and why would we give them
money twice for the same thing?" said Ms. Roessel.

"I'm surprised to hear they were surprised. This was a
discussion we had several times at the monthly Steamship Authority
meetings as the head tax was making its way through the
legislation," said Ms. Roessel.

Mr. Raskin echoed the Vineyard governor and added, "[The head
tax] is really coming out of SSA resources. It is falling on our
customers' shoulders, and that will have an impact on our volume.

"I understand they're disappointed; but I would be
surprised if they didn't understand what we were trying to
say," said Mr. Raskin.

Mr. Israel disagreed with SSA officials' interpretation of the
legislation and sharply criticized management for its presumption.

"It is up to the towns to decide what is relevant, not Mr.
Raskin," he said. "This was not remotely the intent of the
bill, and when the Steamship Authority causes traffic jams because of
poor planning or unexpected circumstances, their responsibility is to
help the town shoulder that burden - that has nothing to do with
port security or infrastructure improvements."

The state legislature approved the new fee as an amendment to the
municipal relief package passed last year. Aimed at softening the blow
from drastic state cuts to local aid, the plan allowed cities and towns
to raise a variety of fees on everything from parking fines and driving
infractions to fire inspections.

Voters in Oak Bluffs and Tisbury also backed the fee at the polls in
November. The language of the legislation is broadly drawn, and Mr.
Israel said the town is still waiting for clear guidelines from
officials at the state Department of Revenue about how and when they
will receive money; they have received none yet.

In Oak Bluffs, Richard Combra, chairman of the board of selectmen,
confirmed that the policy change came as a surprise. He added that he
understood the authority's interpretation of the legislation.

"We hadn't anticipated anything changing, but we would
be more than happy to sit with SSA management to discuss whether it is
reasonable and appropriate," said Mr. Combra.

"I am very disappointed the Steamship Authority seems less
concerned with the community they serve than with their own special
interests," stated Mr. Israel. "The town will not roll over
on this."