Mat-Su

Mat-Su ferry stalled out in Seattle as Assembly delays repair funding

WASILLA -- The Matanuska-Susitna Borough's failed ferry Susitna is docked in Seattle for repairs that aren't funded yet.

After a heated debate, the borough assembly on Tuesday decided to delay a decision to transfer $1.9 million from a land management fund to pay for an engine overhaul needed before the beleaguered boat can finally be sold.

The assembly voted 5-2 to take the matter up next Tuesday.

The borough agreed to sell its never-used vessel to the Philippine Red Cross for $1.75 million once rain-damaged engines were fixed by the end of March -- a deadline that's become impossible.

The Red Cross board agreed to a 90-day extension, according to an email from Lew Madden, the ferry co-inventor who's now brokering the sale deal. But there's still no written agreement, though the Red Cross promised one will be delivered by Saturday. The person who needs to sign off on it is apparently busy campaigning for government office.

Assembly members criticized the lack of a legally binding commitment and detailed look at available options.

"It should never have moved from this location to where it's at. Period," said an infuriated Steve Colligan, who represents Wasilla. "This needs to be postponed until we have an actual plan. I'm just livid about this. This is ridiculous."

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Plans for repair called for work on the ferry to begin this week. Dan Mayfield, an assemblyman from Big Lake, unsuccessfully pressed the assembly to approve at least preliminary work so the ferry doesn't lose its spot for the month of March at a busy dry dock. Mayfield and Jim Sykes voted against the delay.

The borough initially planned to do the work near Ketchikan, where the ship was berthed since 2011 after being acquired for Cook Inlet passenger runs, but its insurance company in December demanded additional repairs that could be performed only in Seattle.

Borough Manager John Moosey originally told the assembly that insurance should cover the repairs, initially expected to cost around $1 million. But now the cost has ballooned to more than $3 million and borough officials are talking about legal action to get insurer Lloyd's of London to pay up.

Moosey said Tuesday that Lloyd's told him they consider the total claim to be between $420,000 and $1.15 million but he expects a fight even there.

Zaz Hollander

Zaz Hollander is a veteran journalist based in the Mat-Su and is currently an ADN local news editor and reporter. She covers breaking news, the Mat-Su region, aviation and general assignments. Contact her at zhollander@adn.com.

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