Residents push back against Lauwers' ferry rate bill

As it makes its way through the state Legislature, a bill that would ease toll adjustments for Champion’s Auto Ferry is getting pushback from Harsens Island residents.

Some of them are upset, believing it enables the only game in town to gouge fares for ushering them between mainland Clay Township and Harsens Island. Others said they felt ignored.

Resident Patrick Feighan, of the Harsen’s Island St. Clair Flats Association, submitted letters to local representatives about his concerns.

He questioned the necessity to change laws that have historically given the public ample time to comment — something he alleged in his letter wasn’t sought as part of the recent bill’s development.

“You can’t have a two-legged stool that’s going to support anything or be stable,” Feighan said in an interview this week. “There’s the other side of the coin. The people who use and are dependent on the ferry. There’s only one way off this island.”

Lauwers bill would make it easier to adjust ferry fees

House Bill 4807 was introduced last June by Rep. Dan Lauwers, R-Brockway Township. It amends the Carriers by Water Act to help expedite requests for rate changes.

Previously, Champion’s owner Dave Bryson cited months- and years-long efforts to adjust rates. The bill passed in the House Nov. 2, and both Bryson and Lauwers appeared before the Senate’s transportation committee Dec. 7 before the bill was recommended to move on for approval.

At the hearing, Sen. Phil Pavlov, R-St. Clair Township, who sits on the committee, said he would support the bill. But Lauwers and Bryson were the only ones there to speak.

Feighan’s letter was addressed to Pavlov in mid-November. He thinks it should have at least been read at the hearing.

“There was just a hearing in the Senate, in the transportation committee, and the letters were there ahead of time,” he said. “We worked with staff to know that ahead of time. … We just wanted an explanation. We wanted to testify about our concerns. We were totally blown off.”

Lauwers said he’s aware of the letters and the residents who relayed concerns.

“I think it’s understandable because they’ve witnessed the turmoil between the state and Champion’s Auto Ferry over the years,” he said.

The Michigan State Police’s motor carriers division assumed regulation of some ferry services, including rates and fares, in 2015.

Before then, Champion’s filed rate increase requests with the Michigan Public Service Commission.. Bryson complained it was a drawn-out process that threatened to shut down the service, landed the business in court and left them grabbling with the utility treatment.

The bill now before the Senate first amends the statute to account for the change in oversight. It also requires action from the MSP on requests for changes to rates and charges within 30 days after they’re filed.

When asked about hearing concerns from residents before rate increases are approved, Lauwers said a suggestion to ensure that opportunity within the bill has been made.

“I think we’ll see that promulgated in the rules that there’ll be a 30-day notice,” he said. “The instructions to state police, if I’m remembering it correctly, is they’d compare the service (to others). Champion’s is a little unique in its private nature. Every other ferry has public support or government money involved.”

Clay, Casco seek grants for waterfront parks

For Harsen’s Island resident Jane Mount, that’s a big concern — how Champion’s is compared to other carriers to determine the fairness of rates when it’s nearly the only service of its kind.

If proposed rates or fares are lower when compared to other carriers, under the bill, MSP would automatically approve the request. If not, it’d have to touch base with the carrier within 15 days and break down why the proposal was determined unreasonable.

In her letter to Sen. Tom Casperson, who chairs the Senate transportation committee, Mount asks for a list of comparable carriers.

“I wanted to know who the other carriers are,” she said Wednesday. “Who’s the standard? They keep saying they’re looking at other carriers.”

Lauwers maintains the bill is designed to prevent concerns about oversight.

“I think when you’re the only business in town, you’re in a tough spot,” he said. “Because no matter what you do, if you don’t have that competition, you’re always going to be suspect. Are you being fair? And there was a posting of a letter on Facebook expressing those concerns. Is the oversight adequate? That’s the whole goal here, to allow the business to operate.”

Feighan said they “don’t have a beef with Champion's” as a business. He said they just want to have input.  

Bryson didn’t respond to multiple calls for comment Wednesday.

During the Dec. 7 hearing, Bryson recounted his difficulties with the state. 

He said it had been a recurring issue that the MPSC would force them to “basically hold customers hostage” to get “the most meager rate increases” approved. But he said he agreed the state should play a role in keeping prices fair — thus Lauwers’ bill to right the ship.

Rates were last raised in 2016.

“They rejected requests for modest rate increases to stay in business, claiming that many of the small business expenses, such as legal fees to defend ourselves in a wrongful death asbestos case, pension payments, lease payments for land … all these things were not allowed under utility rules,” Bryson said. “Also, the MPSC had no financial criteria or policies to determine if a (rate) was even reasonable. All their decisions were based on the whims of the MSPC staff and the commission and the amount of public outcry.”

As of Tuesday, Lauwers’ bill was ordered for a third reading under the Senate’s committee of the whole.

Contact Jackie Smith at (810) 989-6270 or jssmith@gannett.com. Follow her on Twitter @Jackie20Smith.