Ferry Advisory Committee Meeting Minutes

Meeting Details: FAC: Southern Sunshine Coast Date: Tuesday, April 6, 2004 Location: Seaside Centre, Sechelt Time: 9:30 a.m. – 1:10 p.m.

Attendees: Committee BC Ferries Chair, Ed Steeves (Sunshine Coast Regional District)

Captain Steve Graham Marine Superintendent

Barry Cavens (Commuter Representative)

Gerry Parker Terminal Manager, Langdale

Conchita Harding (Gibsons)

Tony Roberts Senior Revenue Analyst

Jakob Knaus (Sechelt)

Deborah Marshall Communications Manager

1. Call to Order: Chair Steeves welcomed everyone to the meeting. The Chair informed the committee that the Sechelt Indian Government Band has nominated Marita Paul as their representative on the committee. Marita was unable to attend this meeting as she had a previous commitment.

2. Approval of Agenda: a.

a.

a.

Mr. Alex Pap requested to make a presentation.

3. Minutes of Previous Meeting: Minutes of the meeting held on January 24, 2003 were approved and distributed on February 11, 2003.

4. Correspondence

None.

5. Delegations:

a. Alex Pap from Save Our Ferries made a presentation to repeal Bill 18.

6. New Business: Review of 2003 summer traffic performance

(Statistics attached – Attachment 1)

1

Tony Roberts made a presentation of traffic data which reviewed the statistics from 2003 vs. 2002.

During the presentation, general discussion included:

• • • •

• • • •

b.

•

•

• •

• •

•

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•

Percentage of capacity utilization showed Friday and Sundays are the heaviest Tuesdays and Wednesdays showed the least number of overloads Impact of Queen of Surrey fire on traffic stats Comment that BC Ferries is concentrating too much on moving vehicles; the company should be looking at getting people out of their cars Request for passenger statistics Review of on-time performance should be included in data Planning for special events and BC Ferries ability to react Vessel deployment compared to the traffic on Route 3

Action: BC Ferries to give committee data in advance of meetings so

committee members review in preparation for meeting.

2004 Summer Schedule Captain Graham ran through the 2004 summer schedule

(Schedule attached – Attachment 2) During the presentation, general discussion included:

BC Ferries reviewed the summer schedule to see if a 5:30 p.m. was feasible on Tues/Wed but cannot achieve such a sailing without incurring approximately $350,000 in added expenditures An option of the commuters utilizing a water taxi company was suggested and BC Ferries was referred to the Commuters Association. (BC Ferries is not introducing a passenger-only service) The cost of the water taxi would be about $15.00 one way The summer schedule will be the same as last year, with the addition of one extra scheduled round trip on Thursdays and Mondays at 1:20 p.m. from Langdale and 2:35 p.m. from Horseshoe Bay Foot passenger overloads are rare It was questioned whether the Queen of Surrey and the Queen of Esquimalt are the right vessels for Route 3 BC Ferries is looking at building two new vessels. The first one will be delivered in the fall of 2006. These vessels will be slightly larger than the C-class. They will be double-enders The on-time performance has improved since the “06:20 am – by 06/20” initiative last summer It was questioned whether the cost of the Queen of Surrey fire was attributed to Route 3 or to the fleet

2

Action: BC Ferries to contact Sunshine Coast Commuters Association about an option for a water taxi service at 5:30 p.m. on Tuesdays and Wednesdays in the summer and the fees associated.

c.

d.

e.

f.

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Upgrades at Langdale terminal Gerry Parker ran through the current initiatives underway at Langdale including shoreline stabilization, replenishing fish habitat, new washrooms, landscaping, third vehicle booth, banners, and benches. Master planning for the Langdale terminal will commence this year. The committee and the community will be asked for input.

(Presentation attached – Attachment 3)

Moving Forward with Stability Gerry Parker made a presentation titled “Moving Forward with Stability” updating the committee about how BC Ferries is moving forward.

(Presentation attached – Attachment 4)

Appointment of BC Ferries Board of Directors On March 30, 2004, the new BC Ferries Board of Directors was appointed. John Henderson, FCA, a resident of the Sunshine Coast is one of the appointees.

Discounts Jakob Knaus made a presentation about discounts.

(Presentation attached – Attachment 5) During the presentation, general discussion included:

Bowen Island’s discounts are between 41-47%; Langdale’s discounts are between 17-27% The committee feels BC Ferries is not addressing their concerns about tariff and discounts The committee may go to the commissioner about their concerns regarding discounts The committee raised the issue of the tariff and discounts with BC Ferries prior to the Coastal Ferry Services Act. A discussion ensued about amenities on Bowen Island vs. Langdale

g. Clarification of Role of Ferry Advisory Committee

Ed Steeves asked for BC Ferries to clarify the role of the Ferry Advisory Committee

Action: BC Ferries to send a letter to the committee to clarify their role. Next Meeting:

3

4

a. TBD

7. Meeting adjourned: (1:10 p.m.) Approved:

Captain Steve Graham Date: April 27, 2004 Ed Steeves, Chair Date: April 30, 2004

Attachments:

1. 2003 Traffic Statistics

2. 2004 Summer Schedule

3. Upgrades at Langdale

4. Moving Forward with Stability

5. Discount Discussions

Date:

SCHEDULES SUBJECT TO CHANGE WITHOUT NOTICE

Route 3 LANGDALE - HORSESHOE BAY Distance: 9.7 miles Sailing Time: 40 minutes SUMMER SCHEDULE 2004 EFFECTIVE: Tuesday, June 29th, 2004 to Monday, September 6th, 2004 inclusive.

Lv. Langdale Lv. Horseshoe Bay

0620 (Esquimalt) (Esquimalt) 0720 0825 0900 C 0930 1040 1015 C 1115 C Arr. 1145 1250 1320 A a 1400 1440 Arr. 1435 A a 1510 1605 A a 1615 1715 1730 A a 1825 A a Arr. 1820 1920 2015 2110

2205 2245 Arr.

Manager’s Discretion Sailings ( Not for Publication) a Tuesday Aug. 3 Scheduled Sailings C Saturdays A Thursdays, Fridays, Sundays & Mondays (Except Sundays Aug.1 & Sep.5)

04-03-02-r1 3-2/04 03/02/10 04/03/31 *Rev. #1

Langdale Terminal

Gerry ParkerTerminal Manager

Presentation to Ferry Advisory Committee

Langdale Terminal 2000

Present Day Challenges• Traffic Congestion on the Bypass• Washroom Facilities• Signage• Appearance/Condition of Terminal• Desire for “Greenery”• Welcome to Sunshine Coast• Departure from Sunshine Coast• Meeting the needs of a variety of customers:

tourists, business/commercial, frequent traveller, occasional traveller, groups, students, buses, etc.

Langdale Creek Project

Langdale Creek Project Continued

Shoreline Stabilization Project

Shoreline Continued

Shoreline Continued

Shoreline After

Washroom Replacement Project

Washroom Replacement Project

Vehicle Booth Replacement Project –Present Configuration

Vehicle Booth Replacement Project –Future Configuration

Terminal Improvement Project –Short Term

Master Planning

• SNC Lavalin working in conjunction with BC Ferries to develop a Master Plan for Langdale Terminal.

• Planning to commence later this year and be essentially complete by the end of 2004.

• Will explore such issues as traffic flow in/out of the terminal, double-decking Berth 2, overhead passenger walkway, amenities and other improvements.

• Opportunity will arise for input.

Going Forward with Stability

Year Two of Coastal Ferry Services Contract

Presentation to the Southern Sunshine Coast Ferry Advisory Committee

6 April 2004

Introduction

• Nearing the first anniversary of British Columbia Ferry Services Inc.

• Many customer-service improvements underway

• Working to grow the business and improve overall service

• Binding arbitration process is ongoing

BC Ferries One Year Ago

• Financial Underpinnings– Ongoing substantial financial losses– $2 billion required to modernize system

• Dysfunctional Governance Structure– Pattern of political interference– BC Ferries prevented from making sound business

decisions – Ferry system could not be sustained without enormous

contributions from B.C. taxpayers

The New Model

ProvinceProvince

RegulatorRegulator

BC Ferry Authority

BC Ferry Services Operating Company

BC Ferry Authority

BC Ferry Services Operating Company

ConsumerProtectionConsumerProtection

Coastal FerryServices Contract

Coastal FerryServices Contract

Achievements in the First Year

• Protection for Coastal Communities– A long-term service commitment– Predictable average fare increases– Regulated service levels – Safety remains top priority

• New ability to invest in vessels and terminals with private-sector financing

• Improved governance structure– New, business-oriented Board of Directors– Independent regulator

Improved Focus on Customer Service

• Renovating vessels to enhance the customer’s travel experience

• Modifying terminals to improve customer experience and develop revenues

• Developing a program to build new vessels to meet and grow market demand

• Marketing to reposition the company and to give consumers compelling reasons to travel

• New food & beverage partners• Pricing initiatives• Customer satisfaction survey published on website annually

(requirement of Coastal Ferry Services Contract)

Role of the B.C. Ferry Commissioner

• In July 2003, Mr. Martin Crilly was appointed as B.C. Ferry Commissioner

• An independent regulator responsible for ensuring the public interest is protected:- Cannot be removed by government- Decisions cannot be overruled– Overseeing rates– Ensuring BC Ferries operates with efficiency and

innovation– Protects public while ensuring ferry company is

financially sound

Improved Public Accountability

• Annual General Meeting open to the public• BC Ferry Authority Board to be appointed with

participation by Regional Districts• Annual Audited Financial Statements Public• Independent Regulator- BC Ferry Commissioner• Customer satisfaction surveys published annually

on BC Ferries website• Still fully regulated by Transport Canada, Labour

Relations Board, Workers Compensation Board etc.

• Subject to municipal bylaws & tax paying

Going ForwardRevitalizing the Fleet

• One of the largest and oldest fleets in the world– Average age ~ 30 years

• Very limited backup capacity

• Regulatory issues

Comparison of World Ferry Operators

Comparison of Average Vessel Age

0

5

10

15

20

25

30

35

40

0 5 10 15 20 25 30 35

Average Vessel Age

Number of Vessels

Alaskan Ferries

Washington State Ferries

BC Ferries

Scandlines

Moby Lines

Color Group USA

Hoverspeed

MinoanLine

SeaFrance

Blue StarFerries

Caledonian MacBrayne

Oldest Fleets are (were) Government Owned

New Vessel Program

– 22 vessels over the next 15 years– Financed through Capital Markets– Coastal Ferry Service Contract will help to secure

financing– Expect an announcement about the program later this

year

Sunshine Coast Improvements

• Current:– Terminal improvement project – landscaping, cleaning– Shoreline Stabilization– Reservations – 68 of 340 spaces are reservable; will

increase very slowly

• Near Future:– Additional vehicle booth– Replace mid & upper lot washrooms before summer

Sunshine Coast Improvements

• Future:– Master plan preparation to start later this year– Possible improvements include:

• Double decking berth #2• Overhead passenger walkway• New administration office• Improved passenger amenities• Improved traffic handling• Improved holding compound

Marketing Programs – Value Added

New Partners

Going ForwardLabour Negotiations

• BC Ferries is in binding arbitration with the BC Ferry and Marine Workers’ Union

• The strike action in December was an extremely difficult situation

• The impact on coastal communities and customers was significant

• It is unlikely there will be a decision from the mediator until late May

• BC Ferries is hopeful that this process will lead to labour peace going forward

Going Forward Consultation

• BC Ferries remains committed to public consultation

• All major projects will include consultation• Ferry Advisory Committees are important and will

continue• Two new terminal-based advisory committees

formed at Horseshoe Bay and Swartz Bay• Major consultation programs for Northern

Services program, Tsawwassen and Swartz Bay master plans

• Consultation for Minor Terminal Master Plans

SummaryGoing Forward with Stability

• No plans to introduce major service changes to any routes

• Requirement to develop new strategy for Northern routes this year

• Progressive and ongoing improvements (‘steady as she goes’) – building a financially sustainable foundation

• Focus on improving the customer’s experience and adding value to that experience

• Bringing labour certainty via binding arbitration

Discussion

Jakob Knaus, 1545 McCullough Rd., Sechelt B.C. (604) 885-7793, ~ikfalcon@uniserve.com

Discussion Papers for the S.c. Ferry Advisory Committee Meeting on Tuesday April 6th2004

Agenda Item "7. New Business -1) Discounts.

Ferry Transportation Allocation (FTF) to R. 3 Langdale -Horseshoe Bay

Some time ago we held discussions with the financial experts ofBC Ferries with regards tooverheads and FTF allocation on our R. 3, but we have not been given plausible conclusiveexplanations, viz. overhead allocation at Horseshoe Bay Terminal, and on what basis the FTFwas allocated to the various routes. We were told that our request for clarification has beenallocated by them as "low priority". We have not heard from them since.

We have been told that the main function of the FTF is the minimizing of expected losseson the various routes.

However, looking at attachment "BCFSI -Ferry Transportation Fee Allocation (FTF) of 7th July2003", we doubt that any systematic basis was chosen for this allocation, or possibly that someroutes had a greater political pull than others!

We find that for R. 3 Langdale -Horseshoe Bay the anticipated annual loss is $ 8.71 Inn, but theFTF is a mere $ 5.0 Inn resulting in a net loss of$ 3.71 Inn! However, R. 8 Bowen Island has ananticipated loss of $ 4.64 Inn but a FTF of $ 5.2 Inn, resulting in a net profit of $ 560,000!(The differences for other routes are listed in the attachment.)

What is a great concern to us is that the travelers from our Sunshine Coast are "subsidized" bythe FTF at a mere $ 2.62 per traffic unit (TV), whereas those for Bowen Island get a subsidy of$ 6.05 per TV. On the Northern Routes this subsidy varies from $ 140.13 to $ 351.30 per TV.

It is illogical that some routes should get a FTF in excess of their anticipated losses, but ourR. 3 is condemned to a loss of $ 3.71 mn!

Federal Subsidy for R. 3 Langdale -Horseshoe Bay.In connection with the FTF we were told that the allocation of the Federal Subsidy of some $ 26mn p.a. might help our R. 3. Despite reminders we still have not received an answer on whatbasis the FTF and the Federal Subsidy have been allocated to the various routes and in particularto our R. 3

We feel that BC Ferries pays lip service in requesting active input from the communities theyserve, but we do not get any answers to our pressing problems, which are impacting us, yourcustomers!

Enclosure: BCFSI -Ferry Transportation Fee Allocation (FTF of 7th July 2003

Jakob Knaus, 1545 McCullough Rd., Sechelt, B.C. VON 3Al, phone (604) 885-7793, fax (604) 885-4043

~~F~I -_F!r~ .Tra!!sDortation Fee Allocation (FTF}~ One Traffic Unit equals 3 passengers or one AEQ* *

Route Distance FTF mn Expected loss Difference FTF nef TU

.mll§ $ million $ million .$.plus minus

3 Hbay/Ldale * 20 5.0 8.71 3.71 2.62

4 SwB/Fulf * I I 5.0 3.82 18 9.49

5 SwB/Outer 28 10.9 11.31 0.41 28.28

6 Ves/Crof* 5 .4 1.32 0.08 3.88

7 SaltlEarlC * 20 9.4 8.04 .36 32.49

8 Hbay/Bowen * 6 5.2 4.64 -.56 6.05

9 Tsaw/Gullf 6.9 10.89var. 3.99 21.19

10 PrRup 273 5.3 11.1 5.81 140.13

II PrRup/Skid 93 8.1 6.88 .22 241.00

312 MillB/Brent .4 0.8 -.60 12.74

17 Com/PowR 17 6.3 7.3 1.00 23.58

18 Tex/PowR 9 3.2 3.94 -.74 17.83

19 GabrlNan * 2.56 3.31 -.81 3.62

20 Chem/Tetis* 8 2.5 2.73 -.23 16.23

21 DenmlBucl * 3 2.7 2.64 -.06 17.53

22 Hom/Den * 3 2. .42 -.68 10.68

23 Quad/CampR * 3 2.9 3.12 -.22 4.04

24 Quadra/Cortes * 12 2.6 3.03 -.43 29.91

25 Pt.McN/Soint 17 3.7 3.98 -.78 17.15

26 Alli/Skidg * 7 2.6 2.92 -.32 24.06

1.9 2.2840 Disc. Coast -.38 351.39VaT.

* Return Fare (distance doubled to conform with fare)

Trportfe2 jk 7d1 July 2003

Jakob Knaus, 1545 McCullough Rd., Sechelt B.C. (604) 885-7793, ikfalcon@uniserve.com

Discussion Papers for the S.C. Ferry Advisory Committee Meeting on Tuesday April 6th2004

Agenda Item "7. New Business -f) Discounts.

DC Ferries Fare Revision January 2004 -Pre Paid Ticket Discounts

When comparing the percentages of the pre paid ticket discounts we find that we are againdiscriminated against. The discount percentages for our R. 3 Langdale Horseshoe Bay have beenreduced as follows:

Passengers from 28.37 % to 27.52 %UHV from 17.83 % to 17.72 %

When compared with routes serving other ferry dependent communities we find that somediscounts have been increased, e.g.

R. 8 Bowen Island UHVR. 18 Texada passengersR. 19/20 Gabriola passengersR. 21/22/23 Denman passengersR. 26 Skidgate UHV

from 41.75 %to41.83 %from 44.10 % to 44.37 %from 50.57 % to 50.73 %from 52.21 % to 52.60 %from 44.91 % to 45.00 %

~

We realize that the differences against the per Jan 04 discounts are small and are most probablydue to the rounding off of the tariff rates. However, our R. 3 has the second lowest discounts,which are substantially below the "future targeted rates" of 30 % for passengers and 25 % forUHV s. We would expect that our discounts should be allowed to rise to these targeted rates anddefinitely not reduced from the former rates of passengers 28.3.7 % and UHV s 17.83 %.

A very dangerous trend seems to be emerging where the discrimination against our ferrytravelers from our Sunshine Coast is being aggravated!

Enclosures: BCFC -Pre Paid Ticket Discounts after Jan 04 tariff increaseBCFC -Pre Paid Ticket Discounts pre Jan 04 tariff increase

Jakob Knaus, 1545 McCullough Rd. , Sechelt, B.C. VON 3Al, phone (604) 885-7793, fax (604) 885-4043,jkfaIcon@uniserve.com

BCFC -Pre Paid Ticket Discounts

~ low weekdays, Tariff January 2004

~ Passen!!er PPT discount Car F. PPT discount

$ $ % $ $ %

1/2/30 MainVVanc.Is 28.3 8.50 25.75

3/7 Hbay/Ldale/SaltlEarls 20 8.25 5.98 27.52 24.50 20.16 17.72

17 Comox/P.R. 20* 7.75 5.98 22.84 23.50 20.16 14.09

4/6 SwB/Saltsp/Croft 8.6 6.25 3.81 39.04 18.-- 11.77 34.62

5 SwB/outer 20.2 6.50 3.965 39.00 20.25 13.05 35.41

8 Hbay/Bowen 6.0 3.226.-- 46.34 17.25 10.035 41.83

9 Tsaw/Gulf 15.5* 10.00 32.50

13 Ldale/Keats 6.0 4.--

18 Texada P.R. 9.4 5.50 3.06 44.37 13.-- 7.95 38.85

19/20 Gabr/Nan/Chem. 6.0 5.50 2.71 50.73 13.-- 7.405 43.04

21/22 Denm/Buck/Homby 2.4 5.-- 2.37 52.60 11.-- 5.875 46.60

23 Quadra/C.R. 3.0 5.-- 2.37 52.60 .50 6.38 44.53

24/25 Quadra/Cortes/Alert 13.0 3.60 40.00 13.75 8.9956.-- 34.59

26 Skid/AllisB 5.0 5.-- 2.37 52.60 11.50 6.325 45.00

lOP .Rup/P .Hardy low 272* 54.25 128.--

summer peak 272* 102.50 241.50

11 P .Rup/Skidg 93* 19.75 73.25

123.7* 34.7540 MidCoast 81.25

Single Fare (all others "return" fares

(fct04. wps)

Jakob Knaus, 1~45 McCullough Rd., Sechelt, B.C. VON 3Al, phone (604) 885-7793, fax (604) 885-4043E-MAIL: JKF 1LCON@UNISERVE.COM

~ low wee~days, Tariff Nov 1997 (after rollback for Pre-Paid Tickets 24.12.97)

~ Miles Passen!!er FaresDiscount%

Car FaresDiscount

%

usage

% usage %

3 Hbay/Ldale t 21 ill 23.32 17.8 27.77 2nd lowest

4 SwB/Fulf * 39. 31.57 34.6 37.35

5 SwB/outer 10# 39.1 40.05 35.9 40.74

6 Ves/Crof* 5 39. 30.76 34.6 37.02

7 Salt/EarlC * 20 28.4 8.91 17.8 10.96

46.4 .f!.:1~ * *8 HbayIBowen,1 * 6 ~ ,{!~*12 MillB/Brent 3 36.3 30.0

13 Ldale/Keats 3#

17 P.R. Comox 17 ill 14.07new new lowest

18 Texada/PowR 5 44. 34.86 39.1 41.27

19 Gabr/Nan * 6 50.5 57.25 43.3 66.15

50.520 Thetis/Chen! 3 47.31 43.3 53.60

~**21 DenIBuckl * 46.5**

~**

3 37.52 51.10

~**22 Den/Homby 3 45.87 59.64

52.2**23 Quadra/CampR * 3 46.11 44.5 55.50

24 Quadra/Co~s * 3 40.0 40.04 35.0 62.16

25 Alert/Somt* 10# 40.0 19.95 35.0 22.18

26 Alli/Skidg * 5 ill 32.73 44.5 44.99

** = hi!!hest discount or hi!!hest usa!!e

* -Return Fare (distance doubled to conform with fare)

" -average, # -iFstimate

FctarilO jk 8/1/199~ updated Ian 2003