This year, Star Line and Shepler's ferry companies will pay an additional 0.5% of gross ticket sales for a franchise to provide passenger service to Mackinac Island. Their total payment of 2.5% is part of a one-year agreement. Arnold Transit Company will continue to be charged last year's rate of 2% with the stipulation that it provide early season boat service beginning in mid-March and continuing through mid-January 2011, weather permitting.

All three boat lines also agreed to hold ticket prices at 2009 levels. An adult round trip ticket will remain at $24 and a child's ticket will stay at $12. Under the tentative agreement, which awaits Mackinac Island City Council's approval, fares can be lowered but not raised without approval from the city.

The tentative agreement was reached Tuesday, February 23, following two weeks of negotiations with attorney Mike Cavanaugh representing the city in the matter.

By telephone Wednesday, February 24, Mr. Cavanaugh presented the tentative agreements during a special city council meeting. Ferry boat representatives were invited to attend, although none did.

The current agreements are set to expire March 31.

Star Line and Shepler's have agreed to the franchise fee increase, said Mr. Cavanaugh. For its part, the city will only require they operate regular ferry service from at least April 30 to October 31 this year.

In a separate agreement, Arnold Transit will provide service from March 15 through January 15, 2011, weather permitting, and will continue to pay a franchise fee at last year's rate of 2% of gross ticket sales, to offset low demand during the off-seasons.

Under the new agreements, the city would receive about $46,000 more in franchise revenue than last year. The estimation is based on the new fee structure and 2009 revenue numbers. In 2009, the city raised a total of $277,624 from its 2% fee in gross ticket prices from the three companies.

At the suggestion of Alderman Jason St. Onge, Mr. Cavanaugh will talk with Arnold Transit about rewriting the agreement to specify that off-season service be offered seven days a week and that the company or its successors use steelhulled boats that are capable of breaking some ice in the off-seasons.

Mr. St. Onge said the rumored sale of Arnold requires that the agreement be specific as to its intent for spring and winter service, so new owner understands what is expected .

Based on the agreements, the city's ferry boat franchise code will require updating, said Mr. Cavanaugh. The extended boat season will be specific and include the dates March 15 to January 15. A definition of what is considered the “regular” boat season of April 30 through October 31 would be added to the document. The franchise price structure would be updated to reflect the two fees for extended service and regular season service.

The one-year agreements are considered a short-term solution, giving the city time this summer to further study boat operations.

“The city wanted to spend time in the year 2010,” said Mr. Cavanaugh, “in studying the entire ferry boat franchise system with the idea that the city council may want to make significant changes to the way ferry boats are franchised and the conditions of the franchises at the end of this period of study.”

During public comment, resident Robin Dorman said he questions the number of boat trips to the Island during the summer season.

“As a rider for the past eight years and having never run this type of company,” he said, “but it seems like we have a lot of boats that come over here with almost no people or very few people. Have these companies seriously looked at cutting back their service during the tourist season?”

Mayor Margaret Doud said that was one issue that would be addressed during the study this year.

The council is expected to have the agreements for consideration at its next meeting Wednesday, March 10, at 5 p.m. in council chambers in Community Hall.