Saint Helens weighs options for water taxi as inspections, insurance and public-safety concerns mount

City Administrator John told the City of Saint Helens council on July 16 that the city-owned water taxi faces outstanding Coast Guard inspection deficiencies, significant insurance costs and operational questions that leave the council with three basic options: keep and operate the boat, keep but contract operation to a third party, or sell the vessel.

John (City Administrator) said the boat’s Certificate of Inspection (COI) is currently in force for the 2023–2028 cycle but that annual inspection letters of deficiency show items — some administrative and some harder to fix — that the city must resolve with the Coast Guard. “The boat does have a COI,” John said, and later explained the COI “is good from 23 to 28,” while some documentation and build‑origin issues remain unresolved.

Why it matters: The boat has been used for events, including transport to Sand Island, but councilors and staff flagged public‑safety and liability concerns. City staff estimated commercial insurance needs at a high level and said private operation or consignment sale may reduce the city’s exposure.

Inspection, insurance and operations

John said some deficiencies are administrative — title and bill‑of‑sale discrepancies — while others relate to safety equipment and documentation that must be reconciled with national vessel records. He described Coast Guard guidance pushing some operators toward smaller passenger counts or different certification paths, including the “Jones Act waiver small vessel program,” which could reduce some build‑in‑America restrictions but also limits passenger capacity.

The city’s insurance broker had advised a high policy limit because of potential liability; John said figures in the $10 million to $15 million range had been discussed in informal conversations. He said that, to insulate the city, the contractor running the boat had assumed liability while operating it at events.

Options discussed

Councilors and staff discussed several possible paths: - Keep the boat in city ownership and operate it in‑house (councilors noted the city lacks certified marine public‑safety personnel and that transporting detainees over water raises special police/sheriff considerations); - Keep the boat but contract or lease operations to a private operator that can carry the insurance and staffing burden (staff noted existing campground/marina operators who have shown interest); and - Declare the vessel surplus and sell it, possibly on consignment through a broker, though staff warned resale value depends on resolving Coast Guard and title issues and on whether the boat remains certified for the higher passenger load.

Brad, the Sand Island Campground operator who has discussed operating the vessel, told staff he is interested in partnering with the city but would need a business model that addresses insurance, inspection and certification costs. City Attorney Ashley and Chief Smith (police) said any operator arrangement must cover public‑safety responsibilities for events and detainee handling. Chief Smith recommended consulting the sheriff’s office for any IGA on marine deployments.

Staff recommendations and next steps

The city administrator asked council to direct staff to pursue additional research and return with options. John recommended staff research market value, the outstanding Coast Guard items that would need remediation to sell at higher value, what would be required to move the vessel into a 12‑passenger small‑vessel program, and potential lease terms with interested local operators. Councilors agreed to have staff return with those details for a future meeting rather than make an immediate decision.

Ending: Council deferred a decision and asked staff to return with tighter cost estimates, legal and insurance analysis, and potential lease or sale terms.