By this time next year, ferry riders will see a 5.5 percent increase in ticket costs.

That raise is being spread out over a year, so as not to impact riders too drastically.

“The transportation commission has a fiduciary responsibility to implement ferry fares that will meet the budget that the Legislature adopts,” said Washington State Transportation commissioner Tom Cowan. “The Legislature passed a budget this year that was expected to require a 2.5 percent fare increase in October 2011 and a 2.5 percent increase in October 2012. However, when the recent revenue forecasts came out, the shortfall would have actually required 4.2 percent in each year to balance the budget. The transportation commission felt that was too high.”

The commission is instead recommending a 2.5 percent increase this October and a 3 percent raise in May 2012.

“Along with one other commissioner, I voted against the May increase because the concept of an increase in May is complicated and had not been presented to the public nor the Ferry Advisory Committee on Tariffs, and I felt that was important,” said Cowan, who lives on Lopez.

In addition, the Legislature mandated a $.25 surcharge on each ferry fare to begin funding a new 144-car ferry. A fuel surcharge will only be implemented if the bulk rate for diesel fuel exceeds $4.08 per gallon.

“The ferry system purchases so much that its bulk rate is pretty low,” Cowan said. “Two weeks ago it was $3.17, so the surcharge may not be needed this biennium. If it is implemented, as fuel goes up beyond $4.08 per gallon, a surcharge at 2.5 percent each quarter to a maximum of 10 percent could be charged.”

Another change is a new car length category of under 14 feet that will have a reduced rate of 30 percent. This is a start in changing the fare structure.

“Ultimately, we would like to have a system that actually charges by the length of the vehicle in one- or two-foot segments, but we don’t yet have the technology,” Cowan said.

The transportation commission will bring the proposal to the public for comments at the end of July. It will hold a public hearing in late August, and new fares will go into effect Oct. 1.

“There is a direct relationship between raising fares and losing ridership, however, it isn’t as important as the overall economy,” Cowan said. “When there were no fare increases two and three years ago, ridership still fell because of the poor economy.”

WSF to put terminal contracts out to bid

If your dream has always been to run a ferry landing in the San Juans, now may be your chance.

Washington State Ferries has announced that it will put out a request for proposals this summer for the Friday Harbor, Orcas and Lopez Island terminal agent contracts. The current contracts expire in November 2011, but the agreements will be extended through the winter sailing season; the transition to new contracts is expected to take place in March 2012. 2008 terminal agent fees for Sidney, Shaw, Lopez, Orcas and Friday Harbor totaled $1.4 million.

But there will be some stiff competition.

“When it comes out for bid, I will be bidding it,” said Margaret Russell, who has been running the Orcas Island ferry landing with family members since 1977. “I love it.”

Agent services are detailed within five main categories in the agent contracts: administrative, ticket sales and collection, operations, reporting, and communications.

The agents are expected to attend to all terminal equipment, including the operation of the transfer span for each vessel arrival and departure, and assist with the loading and unloading of vehicles and passengers.

WSF furnishes and maintains all utilities at the terminals and pays for garbage disposal and restroom pumping services.

A legislative review of ferry operating costs was conducted in July 2008 by the Cedar River Group on behalf of the Joint Transportation Committee. In the report, entitled, “Non-Labor, Non-Fuel Operating Cost Final Report,” the consultant recommended that WSF enter into a competitive process for terminal agent services as the contracts expire to ensure the best combination of service and value.

The report is available online at http://goo.gl/7MvUC.

In response to the audit, WSF stated that the Shaw contract should be exempted from the bid process since the past and present contractors own the store and other buildings at the terminal. Shaw is the only terminal where WSF does not own the upland property.

The Sidney B.C. terminal contract is closely tied with the BC Ferry Agreement and will also be exempted.

The Friday Harbor terminal has been operated by Mike Aiken of Anchor Management Services Inc. since 2002; the Lopez terminal agent contract has been held by Kathy Keller of McKel since 1986. Neither were available for comment.

The Russell family predates the current Orcas terminal, installed in 1983. The Shaw terminal has been operated by Captain’s Landing Inc. since it was sold by the Franciscan Sisters of the Eucharist in 2004.

The report also said agent contracts are normally for five years, with a five-year option. From 2006-2011, WSF offered extensions of most existing contracts that included consumer price index increases to the agent fees.

When the request for proposals is issued, WSF says it will put an announcement in the Daily Journal of Commerce as well as the local county and regional newspapers.

— Islands’ Sounder Editor Colleen Smith Armstrong contributed to this article