2/14/2009

Cliff Courtney
Box 36
Stehekin Washington 98852

Governor Chris Gregoire
Office of the Governor
PO Box 40002
Olympia, WA 98504-0002


Senator Linda Evans Parlette
316 Legislative Building
PO Box 40412
Olympia, WA 98504-0412

 

Rep. Mike Armstrong
426A Legislative Building
PO Box 40600
Olympia, WA 98504-0600

Rep. Cary Condotta
122B Legislative Building
PO Box 40600
Olympia, WA 98504-0600

RE: An open letter to Governor Gregoire, Senator Parlette and Representatives Condotta and Armstrong.

Dear Statesmen,

I am writing this letter on behalf of my family who have lived and worked in the Stehekin Valley and upper Lake Chelan area for going on five generations. We operate numerous businesses in the area and Lake Chelan is our "Marine Highway". We are hoping you can help us with an urgent situation.

In 1927 the legislature passed an act that essentially monopolized any right to commercial use of Lake Chelan for the transport of passengers. The legislation was primarily aimed at socializing ferry boats on the coast. By extension this same law was applied to inland waters and Lake Chelan fell under the jurisdiction of the Washington Utilities and Transportation Commission (WUTC). The transport of passengers in areas other than those served by the Washington State Ferry system was not by definition socialized, but was rather monopolized by means of control of schedules, pricing and other regulation. It is questionable whether this one size fits all law was ever needed on inland waters but nonetheless it still stands. Today this law is holding Stehekin and the upper Lake Chelan Basin hostage and needs your immediate attention. For years the law went largely unnoticed because the nature of the owners of the monopoly were local, service minded folks who were in tune with the community and its needs. The situation was further diffused by the fact that since 1947 there has been an option of using the float plane service. Cheap fuel also allowed for financially feasible private boat transportation for a number of decades for some visitors and many residents. These are not the conditions we face today and the playing field has changed dramatically.

It is always difficult to tell others how to run their business and I hesitate to vilify anyone. I resent being in the position whereby one must tear something else down before something good can be built. However, since only one business is allowed to operate in the climate created by the legislature it is time to examine the quality of the service which is a symptom of the law that was enacted. As is usually the case when government tampers with the free market system the service is mediocre at best and in great need of competition. The "failure formula" created needs an immediate remedy if excellence is ever to return to the Stehekin Experience. This is not to target the operators as such but merely to point out that history shows that any formula that eliminates the honing and refining properties of competition tends to create this result. The right to vote with ones pocketbook is the true democratic portion of our system. It has been eliminated in Stehekin and excellence and choice have been eliminated along with it.

Because I own or manage many of the facilities in Stehekin, and because the happiness of my clients is paramount to my success, I recently set out to see if there was not some way short of legislation that visitors and residents could have some choice as to when and how they achieved ingress and egress to our valley. The idea was that there should be an alternative for Stehekin Clients and residents that was Stehekin based. Three issues stand in the way of excellence currently. Those three elements are poor schedule, poor public relations and poor comfort level. I would hope there is a way to change the law so that our community can overcome these afflictions and continue to be a viable tourist destination. Currently if you are a visitor wanting to spend time in Stehekin you must get up before daylight and drive to the boat terminal at an hour that does not resemble "vacation mode". On departing you also get back to the terminal later in the day than is desirable because you will be late getting home, getting to an airport, or getting to your next destination. I was planning a quality service that could be used by folks spending one or more nights in Stehekin whereby all of these scheduling negatives could be eliminated. I envision a service that appreciates its clients, that is comfortable and quiet, and has a lower price point, -- especially considering saving the cost of a motel and meals in the Chelan area. This business would not be similar to what is now offered. It would depart Stehekin in the morning and have clients back to their car by noon on the day they departed. Incoming visitors would have all morning to drive from their home in Portland, Seattle or Spokane areas at their leisure. Achieving an alternative would have had several immediate positive impacts on the visitor experience and on the viability of the tourist trade. Not only could the quality of the service and the total value be improved upon, but the schedule could be tailored to fit the demand of the visitor that spends one or more nights in the valley.

Imagine this and compare it to today: You drive leisurely from Seattle with your family, enjoying a late breakfast at Leavenworth on your way. You arrive at Fields Point at 12:30pm and slip the pre-printed parking pass on your mirror. You are met at the dock by a crew from Stehekin that is genuinely glad to see you. You board the vessel having produced a bar-coded ticket which allows you to immediately board a vessel which is nearly yacht quality. It is clean, quiet and light and has many different spaces to accommodate your needs. In the front is a section for the children. In the main salon you will find spacious row seating for those wanting to watch the presentation on the screen and to enjoy the scenery. A snack bar is stocked with scrumptious items from the Stehekin Bakery. Down below there is a lounge with casual seating for the repeat customer who wishes to relax and enjoy the company of their neighbor or perhaps read a paper while sipping some robust complimentary coffee. The crew is all Stehekin residents, knowledgeable about your destination and happy to share their stories, information, and local lore. Upon arriving at Stehekin you are met at the dock by various business owners who take you to your chosen place of abode and you feel as if "Stehekin Time" took effect on your way in. On the way out you are sad to leave, having bonded with this simpler way of life and to the residents who have been your hosts. The return trip is once again relaxed and enjoyable and after departing the dock you have ample time to drive back via highway 20 and to stop in Winthrop on the way. Can you support this vision? Will you? It is impossible under current legislation.

Having canvassed my clients for years on the desirability of the current schedule, it became apparent that a great percentage of visitors would spend an extra night or more in the valley if the schedule dovetailed with their needs. A vessel which ran from the Stehekin end meets that need automatically because the natural schedule is to depart Stehekin in the morning and to depart the Chelan end in the afternoon. Economy is also attained because 30% of labor and fuel is eliminated by just going to Fields Point and not clear to Chelan. Imagine the benefits to the visitor of this schedule which would both give them the comfort of daylight driving hours both ways to and from home and eliminate the need to try and find one night lodging in the Chelan area which is a tough task. It is estimated that 80% of the current returning visitors would stay an additional night in Stehekin if such a service could provide a quality experience at a competitive price point that did not necessitate spending one of their vacation nights in the Chelan area. Given the average duration of present stays, that is an immediate visitation increase of around 25%! Retention of repeat customers would also vastly improve if the travel to and from Stehekin was an enjoyable part of their vacation and not a sacrifice they must endure to visit. This service would in no way compete with the present day trip trade that is (or was) the lifeblood of the current certificate holder.

I contacted the WUTC with letters and phone calls and came up with the following answers to several possible workarounds (all questions and answers paraphrased):

 

1. Q. Can I haul my own guests on a scheduled run without a certificate? A. No
2. Q.
If an association or club wanted to haul its members to Stehekin would that be allowed without a certificate? A. No
3. Q.
Can I run an unscheduled run for just my own guests without a certificate? A. No

 

 

The answer was always to obtain a certificate or forget it. It is unknown whether or not the commission would approve another certificate. Because of the current condition of the service and because of the dissimilar nature of the proposal and schedules they may, but it is dubious. The real issue here is that a certificate should not apply and an exemption should be made. The lack of agility the certificate oversight entails would destroy the advantages of a custom service. To replicate what we have is not the intent. Certificates are generally rigid and scheduled and this service would need to be adaptable and efficient. A certificate would allow the transport of the general public on a fixed schedule but that is not a remedy for our situation even if one were to be issued. Because a certificate is both nearly unobtainable and would not affect a remedy in this case I believe legislative relief is in order. I further challenge the right of the legislature, and by extension the WUTC, of taking a large percentage of the commercial potential of our holdings by severely limiting reasonable access in the case of numbers one and three above and for limiting our associational rights in number two. The degree that the current rules deny reasonable service for our customers and for valley citizens is essentially a taking of property rights.
I believe it is incumbent that all parties work together for relief of this dire situation as early as possible. In light of the current state of the state and certainly of the ferry system I recommend the following in order of preference:

  • Deregulate all transportation or vessel transportation statewide.
  • Exempt all inland waters from WUTC jurisdiction.
  • Exempt Lake Chelan from WUTC jurisdiction.
  • Exempt vessels licensed for 49+2 from WUTC jurisdiction like is the case in the San Juans.

Thank you for your time and consideration. Feel free to contact me for details or if you need testimony.

Sincerely,

Cliff Courtney
www.stehekin.biz
svranch@hughes.net

Cc: WUTC commissioners, Lake Chelan Mirror, KOZI Radio, The Wenatchee World, GoLakeChelan, KPQ radio and other media