The final agreement negotiated between the City of Mackinac Island and the three commercial ferry boat companies will require Sunday service throughout the boating season. In the past, the day has been dropped from daily service in midwinter. Introduced to the city council Wednesday, March 10, the oneyear ferry agreement is expected to be adopted in two weeks.

The agreement also requires Arnold Transit to operate from March 15 through January 15, ice conditions permitting.

Arnold, which has the only steelhulled boats among the three ferry companies, will run in the winter and will pay a franchise fee of 2% of gross ticket sales to the city, the same as in 2009. The other two companies, Star Line and Shepler's, will pay 2.5%, but won't be required to run during the early and late seasons.

The agreement will protect the city from change in ownership, should one of the boat companies be sold, as is rumored for Arnold Transit.

“We provide in our ferry boat code that franchises cannot be bought or sold,” said city attorney Mike Cavanaugh, “so if a new company bought out the stock, they would have to come back to city council to apply for a new franchise. I suppose that Council would impose the same requirements on the new company that it imposed on Arnold.”

In exchange for the higher franchise fee, Star Line and Shepler's can operate a shorter season from approximately April 30 to October 31.

Round trip ferry tickets will cost $24 for an adult, the same as last year. If oil prices increase, the companies can seek an increase in the ticket price, however, any hike would require Council's approval.

During the one-year agreement, the city will look at a more longterm contract with the boat companies including, presumably, what steps the city might take if Arnold or its successor get rid of its steelhulled boats.

Webster Foundation

The Michigan Supreme Court has denied Len and Sue Webster's appeal to keep the foundation of their future home in Hubbard's Annex.

In October, a lower court ruling that a foundation for the planned house be brought to grade level and the hole filled and covered was upheld by the Michigan Court of Appeals.

“The only other appellate avenue that remains” for the Websters, said city attorney Tom Evashevski, “is an application to the U.S. Supreme Court, which I think is extremely unlikely.”

For more than 10 years, the city has asked the couple to build their home or restore their lot to its natural state. The lot is surrounded by a fence added to the property by the Websters years ago at the city's urging, and although it provides a level of safety by restricting entrance to the open hole, the foundation walls protrude about four feet above the ground. The unfinished construction, the city has argued, is an eyesore.

Mr. Evashevski said he assumes work to return the lot to its natural state will begin once the frost leaves the ground.

If the Websters fail to do the work, they would be in contempt of court. If the Circuit Court gives approval for the city to do the work, the Websters have posted a $30,000 surety bond that would be used to pay for the work.

Mr. Evashevski said he would ask the Circuit Court to keep the process moving.

Budgets and Preservation

The city is projecting a $72,000 shortfall in revenues over expenses for 2010 and a full council work session Tuesday, March 23, will review cuts the city will need to make to balance the budget. The meeting will begin at 4 p.m. The city's fiscal year begins April 1.

In the meantime, the Board of Public Works (BPW) is recommending the city keep a one mill levy to subsidize operations and will meet with the city council Wednesday, April 21.

Alderman Jason St. Onge said he is disappointed the BPW doesn't try to lower the millage, which he termed unfair because it isn't paid by cottage owners who lease state park land. He urged Council to consider reducing the millage, even to 0.98 or 0.99 mills, as a token gesture to show residents it will not be a permanent tax.

“It's beginning to appear to me that this temporary mill that they asked for three, maybe four years ago, this temporary 1 mill is becoming a permanent mill,” he said. “I don't think it's a fair millage.”

Mayor Margaret Doud suggested the discussion continue with the BPW at the upcoming meeting. The BPW asked for a joint meeting April 30, but the city council scheduled it for 4 p.m. on April 21, and will notify the BPW of the new date.

Save Our Island, a preservation group formed to protest the planned demolition of the McNally house on Main Street, is scheduling a meeting with the city Wednesday, May 5, at which time the group plans a presentation by a preservation expert, said group member Anthony "Mac" Trayser, who attended the council meeting. The group is waiting to confirm the speaker's schedule.

“It is important to note that Save Our Island passionately opposes the demolition of the McNally Cottage, in part, because they believe the demolition has the potential to set a significant precedent for historic preservation on Mackinac Island,” wrote the group's attorney, Eric Starck, in a letter to the city.

Other business

In a letter to the city, the Coast Guard reported its regulations would allow a vessel to cut a path through the ice to the Island for emergency needs, which include to meet an immediate need for heating oil, fuel, food, or medical assistance, but the Coast Guard would not cut a track in the ice for ferries as a way to extend boat service into the winter, which the Island had requested in February.

Council will invite a Coast Guard representative to a future meeting to discuss the matter.

Armand “Smi” Horn, who resigned from the Mackinac Island Recreation Department board of directors, was recognized for his service to the board for the past 13 years. A resolution from the Recreation Department was read by Mayor Doud.

Council set a Zoning Board of Appeals meeting for Wednesday, June 2, at 5:30 p.m. to consider a lot split for Bob Benser regarding land that includes Cottage Inn on Market Street and an abutting building on Main Street that has held Sarducci's Pizza.

Council approved its annual $15,000 contribution for operation costs to the Medical Center.

At the recommendation of the Finance Committee, the city council approved increasing weekly rent for police officers at St. Martin's Place from $50 a week to $75 a week and to make it seasonal lodging, closing the house in the winter.

Council also increased the travel reimbursement rate for city employees from 42¢ per mile to 45¢ per mile, and per diem pay from $34 a day to $35 a day for meals when traveling on city business.