SB 288 authorizes the Department of Transportation and Public Facilities to enter into an agreement with the Inter-Island Ferry Authority to operate the state’s Clarke Bay marine terminal facility.

Rather than rely on the uncertain plans of the state, the communities of Prince of Wales Island took the initiative in 1997 to solve their own ferry service needs. They formed the Inter-Island Ferry Authority to provide daily ferry service from POW to Ketchikan and to provide a northern link to the communities of Petersburg and Wrangell. Currently, the service between Ketchikan and Clarke Bay (Hollis) by Alaska Marine Highway System ferries is five trips a week during the summer and three trips a week during the winter. For a substantial part of the winter, this service is further reduced to once a week.

The Authority is well on its way to establishing a revenue sustaining transportation system that meets the area’s need for increased service. Construction of the first ship is scheduled for June of next year. Considerable funds have also been secured to upgrade existing terminal facilities and construct the new ones needed for the northern portion.

A key feature of the Inter-Island Ferry Authority is the use and operation of the Clarke Bay terminal facility. The state is willing to come to an agreement with the Authority to operate the facility since it will be the principal user. Legislative approval, however, is required before such an agreement can be concluded (AS 29.35.722(2)). This approval is provided in SB 288.