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Council directs staff to pursue sale and RFP options for city water taxi after documentation issues
Summary
After learning the vessel lacks federal commercial documentation (triggering Jones Act limits and a 12‑passenger cap), councilors directed staff to initiate surplus‑property steps to sell the boat and to prepare an RFP for potential operators if the boat does not sell.
Councilors and staff discussed options for the city‑owned vessel at the March 18 work session and gave staff direction to prepare surplus‑property steps and market options rather than continue an expensive certification effort without clear benefit.
City administrator John updated the council on the vessel's documentation status: the boat lacks the federal certificate of documentation required for normal commercial operation, which under the Jones Act would limit commercial operation to 12 passengers absent a waiver. John said the waiver application is possible but could take months and the vessel would still be restricted to reduced capacity in the interim.
Councilors weighed options — pursuing the Coast Guard/COD work to maximize sale price, putting the boat up for sale as is, or issuing an RFP to license a private operator under city ownership. One councilor recommended issuing an RFP first to test local interest and preserve an option to sell; another argued the city should sell and move on. "I think we should halt anything moving forward with the application and move into RFPs first," one councilor said; others favored putting the vessel up for sale while preparing an RFP if it does not sell.
Council consensus (direction rather than a final vote) was to direct the city administrator to begin the administrative process to declare the vessel surplus property and to prepare sale and RFP materials so multiple options are available; staff said a public‑hearing step is required to formally declare surplused property before a sale. Staff also noted a modest fee (about $500) would start Jones Act waiver/documentation work if council opts for that route.
Next steps: staff will begin the surplus‑property process, prepare sale materials and draft an RFP for council consideration. No sale or licensing agreement was approved during the work session.
