South Ferry approved for a rate increase: Rising costs have company operating at a loss

It’s a now done deal for rate increases requested by both North and South Ferry companies.

Following two public hearings Tuesday night and lengthy discussions among Suffolk County legislators, the action came on the requests for non-resident increases of between 47.4%, and 66.67%, with lower increases for Island residents.

South Ferry’s application had been submitted to the County Budget Review Office in December (BRO), with the North Ferry request sent to the BRO in March.

County Legislator Catherine Stark (R-Riverhead), who represents Shelter Island,  had said last week she expected a rapid turnaround on both, and had asked County Executive Ed Romaine to sign the approvals rapidly, rather than wait the allowable 15 days after the legislature acted.

Faced with the same challenges as North Ferry, with major infrastructure investments to deal with rising sea levels, extreme high and low tides, and other operational expenses, South Ferry sought the rate increases.

The ferry service, which runs from the Island to North Haven 365 days a year, last raised rates six years ago. Since then the company spent $5.2 million in capital improvements, primarily raising some ramps and lowering others to ensure service when tides were particularly high or lower than they had been in previous years.

Director of Operations Briton Clark was the spokesman for South Ferry at an April 30 information session at Town Hall. Mr. Clark primarily focused on issues of concern for local residents. As with North Ferry, South Ferry offers much lower rates to residents, augmenting company income with fees paid by non-residents.

Of particular interest to Islanders is a plan to implement a debit card system similar to that in use on North Ferry. When the system is in place, people can pay a fee when they obtain a ferry debit card, from which ferry fares will be deducted. They can then replenish the amount on the card as their initial payment is depleted.

There are two tiers of fare charges for residents. Tier 1 is for residents with New York State driver’s licenses, while Tier 2 is assigned to Island property owners who lack local driver’s licenses or year-round renters. In most cases, Islanders without New York State licenses for Shelter Island choose to hold driver’s licenses from other states they may spend time in, often as a money saving measure.

What all this means in terms of rates is:

• The cost of a five-day commuter fee will increase from $27 to $30, while a six-day resident commuter will see a hike from $33 to $36.

• Non-residents will see an increase for a five-day-a week commute rise from $27 to $45.

• It will cost the general public $115 for 10 one-way trips, up from $90; and $150 up from $120 for 10 round-trip fares.

• Tier 1 residents will continue to pay $6.50  for a one-way auto fare, but those residents in Tier 2 will see their one-way auto trip cost $9.50, up from $6.50.

For an island with no bridges, the two ferry companies are not just the links to the North and South forks for travel and commerce, but in times of serious storms, they are the lifesaving vehicles for ferrying critically ill people to hospitals.

The December report South Ferry to the County Budget Review Office noted rising expenses, investments in infrastructure, including crew housing, boat maintenance, and ramp replacements.

South Ferry has replaced two of its four ramps and plans to replace the other two ramps this year. In addition to staff salaries, housing for crew members has become critical, with the need to buy existing structures and build others.

There were not many questions or protests at the April 30 meeting from either those in the room or others accessing the session virtually.