Page Fifty-Five 

10 JANUARY 2006

It's Over.

40º | Hi 43º / Lo 34º | Forecast

Mayor Robert Duffy has decided to, in effect, end high-speed ferry service between Rochester and Toronto, saying the financial risk would be too great to go further in debt. Duffy kills ferry to Toronto: 'It stops the bleeding' Brian Sharp Staff writer (January 10, 2006) — Mayor Robert Duffy has decided to, in effect, end high-speed ferry service between Rochester and Toronto, saying the financial risk would be too great to go further in debt. "I will not authorize the bonding of $11.5 million to continue operation of the fast ferry," Duffy told the Democrat and Chronicle editorial board today. "The City of Rochester will no longer be in the ferry business." Projected to lose $700,000 this past season, the ferry operation instead burned through $10 million in 10 months. Duffy said the city-created Rochester Ferry Co. currently is in debt $2.5 million to manager Bay Ferries Great Lakes LLC. Even with borrowing $11.5 million, corporation counsel Thomas Richards said enough money is owed -- and bills coming due, and expenses budgeted -- that the city likely would have finished the year with no more than $3 million. That, he said, would not be enough to start the 2007 season. The city backed a $40 million loan, created Rochester Ferry and bought the ship. Rochester Ferry then hired Bay Ferries to manage the service. A delayed, mid-season start-up hurt ridership and revenue. And it was the second partial season for the ship.

Nobody's shocked, some people are disappointed and a lot of Rochester area residents are relieved.  This little shell game is history.

An interesting tidbit was uncovered which fairly screams "Hidden bribery scheme".  The city of Rochester has a 14-year agreement with the Toronto Port Authority to pay $250,000 PER YEAR plus $1 per head for every passenger leaving from Toronto.  Based on last year's season, that $1 per head fee was $220,000 and each car leaving from Toronto netted the TPA another $3.

Tell me that isn't a pathetic tactic to bribe Toronto into allowing the fast barge from Rochester to tie up at the Toronto dock.  Toronto made out very nicely and Duffy commented on how 'Rochester was supporting Toronto's tourism at city taxpayer expense'.  Like we didn't know that from Day One.

This ferry deal had more hidden agendas than a daytime soap opera and some might say it did nothing except pulling a fast one over on the public.  But it's over and that's all that matters at this point.

Now the fallout begins.  Let's have some fun watching the local media trip over themselves in a rush to lay blame and delve into the Rochester version of Investigative Reports.

Mayor Duffy?  Hats off to you, sir.  Even though there was little other serious recourse, it was far past time to end the insanity.  Pulling the plug was painful but necessary and it should have begun BEFORE October 2002 when Dominic Delucia signed the contract.  He's the real culprit for thinking such a boneheaded deal would ever fly and as accomplices to his idiocy, the city of Rochester bought right into his sales pitch.

Sweet talking Bay Ferries with lauds of praise ain't gonna cut it; they want their $2.5 million and they want it yesterday.  Pay up.  Now.

Fast Ferry Finished   1/10/2006 5:00 PM (WROC-TV) After only 10 days in office, Rochester Mayor Bob Duffy says he will not approve the bonding of $11.5 million to keep The Cat in service. Duffy said, "The City of Rochester will no longer be in the ferry business." Tune in to News 8 Now at 6 and 11 for more on this developing story.

Copy writers are scrambling:

Fast Ferry Finished (Rochester, NY) 01/10/06 -- Mayor Bob Duffy has announced that the fast ferry will be sold. "It is my belief the city should not run the service," Duffy said. He could have approved an $11.5 million loan to keep the ferry operating, but instead he will ask the council to approve $9.5 million to pay off the ferry's debts. He will then seek approval to sell the ship. Rochester bought the fast ferry about a year ago with a $40 million loan. In December, the ferry shut down for the winter season.    Former Rochester Mayor Bill Johnson has declined comment. (I'll bet.)

A show of hands: How many think the tired "They should have given the service a full year of operation before deciding" will be the rally cry of ferry supporters?

Despite Mayor Bob pointing out that the best case scenario (doubling passenger numbers - yeah... right, increasing ticket prices and the WONDERS of a 'marketing campaign') the ferry would still see a loss of $2.7 million for 2006.  That's not remaining optimistic, that's remaining stupid.  Blowing millions of dollars for a "maybe it might work" is sheer irresponsibility.

Duffy also left the door open for 'another service' to take the ferry's place... à la hovercraft.. but this time, it would have to be completely privately funded.  So far, the folks at Hover Transit Services in Bolton haven't been around too much lately, but when there's a whiff of cash to be made -- however feeble -- you can bet an opportunist will be waiting in the wings.

A Toronto-Rochester hovercraft?  Haven't we learned a damned thing in the past five years?

Ex-Mayor Bill Johnson sulks.  Ferry supporters mourn.  Toronto doesn't even notice.

Tuesday   January 10, 2006

Duffy says he will not endorse funding. Rochester Shuts Down Ferry   by Jim Aroune & Scott Fairbanks Photo by Nate Kramer Published Jan 10, 2006 The city of Rochester is out of the fast ferry business. Mayor Bob Duffy declined Tuesday afternoon to support plans to bond $11.5 million dollars to operate “The Cat.” Duffy said after his new administration sized up the service, which lost $10 million dollars in 2005, they came to the conclusion that continuing to fund the ferry did not add up. Only ten days into his job as Rochester’s new mayor, Duffy said it wasn’t an easy decision to torpedo a project that had been a longtime goal of his predecessor, Bill Johnson. “After thinking about what the priorities of this city must be, weighed against what it would require to continue the ferry’s operation, the choice became obvious to me,” he said. Duffy's staff figured, in the best case scenario, the ferry would still lose $2.7 million dollars. Duffy left open the possibility the ferry could be operated by a private business. “There may be someone who wants to start up a service,” Duffy conceded from Rochester’s city hall. “But it is my opinion that the city should not run that service. It should be a private enterprise. Any additional cost could be born elsewhere, but this is a decision I think we have to make.” Duffy will ask city council for $9.5 million dollars to help Rochester get out of the ferry business. That money would go to ferry management company Bay Ferries. It would also cover the remaining debt service and other costs to sell the ferry. All of the numbers that added up against Rochester’s fast ferry service were not only on the books at City Hall. In its assessment of the ferry business, the Duffy administration discovered a contract Rochester had with Toronto that, in Duffy's words, "subsidizes Toronto's tourism industry." The Canadian city received $250,000 a year for 14 years. Rochester also paid the city $1 for every person that took the ferry to Toronto and $3 for every car. “This is an example of some of the costs we discovered that just make it not a very viable enterprise,” Duffy said. Toronto's refusal to help fund the ferry service also moved Duffy to shut down the ferry. City of Rochester

"Toronto's refusal to help fund the ferry service also moved Duffy to shut down the ferry."

A rather telling choice of words here; instead of writing "Toronto declined to help fund the ferry service..." the reader is left with a case of sour grapes and feeling snubbed.  I don't know, maybe that was the reason 'refusal to help fund the ferry service' was used.  If anyone cares, that would be a Rochester resident... Torontonians couldn't care less.  That's why Toronto 'declined' to fork over cash to bail out a Rochester-based ferry folly.  Makes sense to me but probably isn't well received by overly-sensitive local types.

Fast ferry finished   1/10/2006 5:00 PM (WROC-TV) After only 10 days in office, Rochester Mayor Bob Duffy says he will not approve the bonding of $11.5 million to keep The Cat in service. Duffy said, "The City of Rochester will no longer be in the ferry business." The ferry lost $10 million in its first season under city-ownership. Duffy says his staff could not find ways to keep the ferry afloat without major subsidies. Duffy estimated the ferry would need a $5 million subsidy next year. Duffy will ask City Council to approve spending $9.5 million to get out of the ferry business. Several City Council members, who largely championed the project, seemed reconciled to the fact the ferry has no future. They said they understood the decision, and will support the mayor.

"Fast ferry finished"

Alliteration being what it is, I guess we should expect this.  It's gentler than "Ferry bad flop" or "Ferry fails to deliver' or some other insult added to injury but if Rochester area residents think there's going to be an outpouring of hand-holding and sympathy over this loss, they'll be waiting for quite a while.

"I hope we're not going to be defined by this."

So said Mayor Bob in today's announcement.  Sorry Bob; when Rochester made as much noise about this ferry as it has for the past five years, don't expect other localities to conveniently forget it just because it's a major embarrassment to the Rochester area.  You screwed up.  Take your lumps and move on.

Rochester Gets Out Of The Ferry Business (Rochester, NY) 01/10/06 - After just ten days in office, Mayor Bob Duffy says Rochester is getting out of the ferry business. He announced Tuesday evening at a special session of City Council that he decided to not approve the bonding of $11.5 million to continue operation of the fast ferry, but instead he will ask the council to approve $9.5 million to pay off the ferry's debts. Duffy suggested that there are better ways to spend city money, namely, putting more cops on the streets and getting rid of old lead paint-filled houses. He said after reviewing all the data and information that the ferry was “just not affordable, and not likely to be financially successful.” He said it wasn’t even likely the ferry could break even. “It’s the right decision for our community,” he said, and then suggested that someone from the private sector might step up to run the ship, but, "It is my belief the city should not run the service." The Mayor said the financial risk would be too great to go further in debt--and there are too many people to pay. Rochester bought the fast ferry about a year ago with a $40 million loan. In December, the ferry shut down for the winter season. City Councilman Ben Douglas said he's disappointed by Tuesday's news. He said despite the risk involved in continuing the ferry service, it would have been worth it.  (Ben, please explain WHY it would have been 'worth it'.)

Taking notes: Mayor Bob rattled off some statistics meant to garner public support at his ferry eulogy:

The $51.5 million debt would buy:

570 additional police officers, with a fleet of new police cruisers

735 city houses made lead-safe

412 abandoned city houses demolished and new houses built on the spot

It's hard to argue with facts... even if they're stretched a bit to make a point, but the message is abundantly clear:  Rochester has far more pressing needs for money other than floating some fun ride to Toronto.

Maybe Ben Douglas thinks leaving abandoned houses to be used as arson targets and drug covers is an acceptable trade-off to keep the ferry running.  Lead paint in city houses?  Murder capital of New York State?  For what?  Just so the crowd with disposable income can enjoy a boat ride?

See ya, Ben.  Your credibility just sank with the ferry.

"Rochester stepping away from ferry business"

How demure.  How dainty.  "Stepping away" from the mess is far more palatable than trying to scrape it off the bottom of the shoes. 

Whatever.  The message is clear enough.

Expanding the Breaking News blurb:

34º | Hi 41º / Lo 33º |

Mayor Robert Duffy has decided to, in effect, end high-speed ferry service between Rochester and Toronto, saying the financial risk would be too great to go further in debt. Duffy kills ferry to Toronto:  It stops the bleeding' Brian Sharp Staff writer (January 10, 2006) — Mayor Robert Duffy has decided to, in effect, end high-speed ferry service between Rochester and Toronto, saying the financial risk would be too great to go further in debt. “I will not authorize the bonding of $11.5 million to continue operation of the fast ferry,” Duffy told the Democrat and Chronicle editorial board today. “The City of Rochester will no longer be in the ferry business.” Projected to lose $700,000 this past season, the ferry operation instead burned through $10 million in 10 months. Duffy said the city-created Rochester Ferry Co. currently is in debt $2.5 million to manager Bay Ferries Great Lakes LLC. Even with borrowing $11.5 million, corporation counsel Thomas Richards said enough money is owed -- and bills coming due, and expenses budgeted -- that the city likely would have finished the year with no more than $3 million. That, he said, would not be enough to start the 2007 season. The city backed a $40 million loan, created Rochester Ferry and bought the ship. Rochester Ferry then hired Bay Ferries to manage the service. A delayed, mid-season start-up hurt ridership and revenue. And it was the second partial season for the ship. Supporters have argued the ferry needed a full season, envisioned for 2006, to really gauge its performance. Last month, then-Mayor William A. Johnson Jr. sought to shore up ferry finances and another season, proposing that the ferry board be allowed to borrow another $11.5 million. City Council backed the idea but delayed action until Duffy could weigh in. Duffy said he asked four questions: Can the city afford to operate the ferry? Is there a sound business and operating plan? Is the ferry likely to succeed? Is this the best way to spend so much money? The answer to each of those questions, he said, was no. In the short term, Duffy said, he will ask City Council to authorize transferring $9.5 million from city reserves to cover expenses this year and aggressively move to sell the ship. “It stops the bleeding is really what it does,” the mayor said. As for his controversial decision: “I’d rather take the hit right now and maybe gain some credibility…as opposed to next year with an inflated debt, maybe even more uncertainty.” City councilman and ferry board president Benjamin Douglas said he was disappointed the operation did not get a chance to prove itself. Douglas also noted that by taking money from the reserve the city will end up spending almost as much to close out the ferry operation this year as it would have to give the ship a full season. “We’re looking beyond now, we’re not looking back,’’ Douglas said. And of Duffy’s decision: “I respect that. I’m not going to second guess that decision.’’ City council president Lois Giess also said she wished the ferry would’ve had a full season. “I think (Duffy) was looking at the worst case and if the city would be in worse shape 10 months from now. Maybe he wanted to have a known loss instead of an unknown loss,’’ Giess said, of the required subsidy. “I think we saw the ferry as an economic development tool, particularly for the Charlotte harbor.’’ In a statement, Toronto Mayor David Miller said: “It’s too bad. The ferry was a good thing for Toronto. This is a waterfront city and the ferry provided an opportunity to bring travelers here from all over the northeastern United States. It’s a regrettable development.’’

"In a statement, Toronto Mayor David Miller said: “It’s too bad. The ferry was a good thing for Toronto. This is a waterfront city and the ferry provided an opportunity to bring travelers here from all over the northeastern United States. It’s a regrettable development.’’

Yeah, I guess a US$ 250,000 annual dock fee isn't too shabby.  Plus a buck a head for every passenger leaving from Toronto (US$ 220,000 in 2005) should pay for the heat and lights for the Toronto ferry terminal.  Toronto didn't get to be a world-class city by giving the farm away; take a clue, Rochester.

Toronto always stood to gain more from the ferry than Rochester did and it's ludicrous to believe otherwise.  So yes, Mayor Miller's dismay is palpable.  They just shot the cash cow.

"Duffy said he asked four questions: Can the city afford to operate the ferry? Is there a sound business and operating plan? Is the ferry likely to succeed? Is this the best way to spend so much money?"

These are the questions of someone looking for a reason to end a business.  Loaded questions at that.  "Can the city afford to operate the ferry?"  Yes.  (No, that's ridiculous and could never be said with any sincerity.) 

"Is there a sound business and operating plan?"  Yes.  (What plan other than some vague 'marketing' concept has been announced?  What concrete facts have pointed to the success of the ferry business?  'No' is the only possible answer to this question.)

"Is the ferry likely to succeed?"  Yes.  (There is absolutely no historical indication of this... nor is there any new development which points to a radical turnaround.  Despite the dreamworld of ferry supporters.)

 "Is this the best way to spend so much money?"  Yes.  (Loaded question: Exhibit A.)

Doesn't sound like Mayor Bob tried to keep the ferry running very hard.  Sounds more like he appealed to the public's common sense... but whatever PR charade he wanted to play, the end justified the means. 

As far as I'm concerned, he could have said "Game's over.  We're selling the boat" and left it at that.  But to placate the ferry faithful, I guess a tactful and graceful announcement which hints at thoughtful contemplation is preferable to cackling out loud at the thought of dumping more money into a bottomless money pit.

Sure would have livened things up though.

10 JANUARY 2006

<Shrug>

Time to head across the border again.  I'll check the reactions to the latest news from Rochester while I'm in Toronto... if there ARE any reactions.

Mayor of Rochester sinks ferry revival By OLIVER MOORE Wednesday, January 11, 2006 Page A13 The City of Rochester pulled the plug yesterday on crucial funding for the Cat passenger ferry across Lake Ontario, ending the latest resurrection of the money-losing service. Rochester Mayor Robert Duffy told a local newspaper that he had to "stop the bleeding" at the ferry, which was projected to lose $700,000 (U.S.) last year but which had actually lost $10-million in 10 months. Mr. Duffy's office did not immediately return calls, but it was clear that withholding funds needed for bonding had left the ferry 's future on life support again. In the words of Mr. Duffy: "The City of Rochester will no longer be in the ferry business." Recent communication from the ferry operators suggest that the decision was unexpected. The ferry had stopped running for winter but the ticket office still had a message predicting a resumption of service on March 31. Last night, the ferry's website carried an invitation to "Treat someone to a purrrrfect travel experience" with the catamaran. (Do I detect a note of sarcasm here?.  No... no, this CAN'T be true.  This is an example of Rochester 'marketing'?) The vessel began life as the Spirit of Ontario, a privately owned venture that shut down in September, 2004, after less than three months of disappointing business. Its backers ran out of money and sold the vessel for $32-million to the City of Rochester, which renamed it the Cat. The ferry was operational again by the middle of last year. Although entering the market during the peak season, it proved less appealing to the public than had been hoped. By the last two months of the year, the 774-seat vessel was carrying fewer than 100 people on each passage. Despite the boat's financial woes, cross-border ferries were considered by a number of U.S. communities last year, including Cleveland and Grand River, Ohio, and Erie, Pa. Equally optimistic yesterday was Ed Hall, president and CEO of the Greater Rochester Visitors Association. He said the ferry carried few visitors to Rochester and the shutdown "is not a reflection of the health, vitality or promise of the . . . community."

"...and the shutdown "is not a reflection of the health, vitality or promise of the . . . community."

Yeah, RIGHT!!  Any Canadian who reads that strategically placed last line will be rolling their eyes in skepticism.  A city which can't operate or fund a single ferry without doing a nose-dive into tens of millions of dollars in debt is a 'healthy, vital and promising community'.  Umm-hmmm.

"Last night, the ferry's website carried an invitation to "Treat someone to a purrrrfect travel experience" with the catamaran."

Please.  I beg someone to tell me which local marketing/advertising GENIUS came up with that 100% cornball and hokey little gem of an idea.  Please.  Its stupidity defies description and if this is an example of the marvels of allowing Rochester 'marketing experts' to try and pitch an idea to the Toronto market, all I can say is "Grow up". 

No, dear Arnie Rothschild, Toronto does not have all the urbane sophistication of the back row in the cornfield of Hee-Haw.  That distinction appears to pass for witty humour in the Rochester area and would probably be thought of as a highly clever kneeslapper.  My God.  I can't believe such a lame and sophomoric attempt at advertising would even be suggested. 

Just what kind of boneheads pass for 'professionals' in the Rochester business community?  Is this the best that can be expected from contracting out locally?  THIS is exactly what I meant by farming out any 'marketing' or advertising to a Toronto-based organization where cutting-edge work is not only expected, but demanded by the public.  Evidently, the staff over at the Globe and Mail feel the same or they wouldn't have wasted space to draw attention to it.

The humiliation is complete.  Local 'marketers' couldn't just leave well enough alone and wait until they knew whether or not the ferry would even see a 2006 season.

"(President and CEO of the Toronto Port Authority, Lisa) Raitt's statement added: "The International Marine Passenger Terminal will continue to host Great Lakes cruise ships and we will pursue alternative tenants and uses for the facility."

Now then.  What was that feeble suggestion about allowing a hovercraft company to make a debut between Toronto and Rochester?  If the Toronto Port Authority is dumping any thoughts of using the terminal for its intended design and purpose, that sort of lets you know yet ANOTHER Rochester attempt at a maritime link has as much chance of success as the past two ferry incarnations.

The TPA is on the hot seat anyway; the Toronto City Hall has been wanting to do away with the TPA for years and with this latest screwup involving some backwater burg's 'GREAT' ferry idea -- which failed not once, but twice -- it's highly unlikely there'll be another chance granted.  The TPA has had its wings clipped with this latest flop.  Route to Rochester?  Fat chance, Milhouse.

Rochester?  In the eyes of Toronto, you just crapped out.  Just back away from the table and go play with the quarter slots from now on.  That mirrors your level of skill in dealing with the Big Guys... you got in WAY over your heads and now it's time to give up the chair to someone with more expertise.

Now leave us alone.  We've got a federal election on our hands and don't have the interest or inclination to play with you guys.  You want to visit Toronto?  Take the QEW -- if that's too intimidating for you, stay at home and pout.  Makes no difference to us one way or the other.

I'll see you Cabbagetown folks Wednesday afternoon.  And no, I don't need to get my hair cut in Yorkville.....