P. O.

Box 750
Isla de Culebra, PR 00775
(0) 787-556-6234 email: info@coralations.org
July 31, 2018

Luis Abreu Noble

Director Ejecutivo, y,
La Junta de Directores de ATM
PO Box 41118
San Juan, PR. 00940

Re: Proposed changes to tariffs for Culebra and Vieques public ferry system.

Introduction: My name is Mary Ann Lucking and I am the Director of CORALations an

incorporated NGO based on the island for many years and that is affected by the
performance of the ATM.

QUESTION 1 - Is there a formal record of these proceedings being made during

this important public hearing. A formal recording?
ANSWER - No, we are taking notes.

The maritime service provided to Vieques and Culebra is intended to function with
benefit of federal subsidies as do other highway systems throughout the US and
other nations, to provide safe, reliable, affordable and accountable transportation
services to the public. This transportation provides access to services critical to the
people of the low-income, traditionally underserved municipal islands of Culebra and
Vieques, including access to education, health care, veterinarians, communication
and computer repair and many goods and services available only to municipal island
residents on the main island of Puerto Rico. The ATM is also supposed to provide
safe and affordable transportation of fuels to the islands. The economy of Culebra
also depends on the ability of the ATM to provide reliable, respectful and efficient
services for visitors, critical to the island’s tourism economy.

The study supporting the increase in tariffs was produced in association with
Government plans to semi-privatize the service. This study, entitled: Desirability
and Convenience Study for the Puerto Rico Maritime Transportation Services
Project, April 2018 will here to forward be referred to as “The study.” was
posted only in English,

QUESTION 2 PLEASE CONFIRM IF THERE IS A SPANISH VERSION POSTED

ANSWER: Sr. Abreau Noble confirmed he only saw the one study and it was
posted only in english.

Because the study supporting this tariff increase is a study associated with the
privatization of services, one cannot separate the proposed tariff increases from the
proposed privatization and plans to relocate the ferry terminals to Ceiba, to the
obvious detriment of both local municipal island residents, and what’s left of the
fragile economic stability of businesses that serve the small islands in Fajardo.

It seems clear the privatization will only benefit well connected big interests
associated with the development of Ceiba, and this fast track fare raise appears to
the public as an obvious attempt to sweeten the deal to privatize a government
service that like so many nationally subsidized, critical transportation systems
around the globe, operates at a loss. To be clear, the proposed semi-privatization
would not involve competition by multiple private entities, but instead forge a
public-private partnership with one commercial business that in order to collaborate
on providing this costly, critical public service, are being offered a 20 year contract
meaning until 2038, and full dominion over the development of all ancillary
concessions at all ports including the repair facilities in Isla Grande and Ceiba.
Unfortunately it is the objective of business to turn a profit, and it is the objective
of government to provide critical social services to the public. No increase in fares
should be considered without presentation of a viable plan to improve services.

The study pretends to serve as a plan to address current problems and propose
solutions, but provides no cost-benefit analysis based on relevant data. It fails to
identify all problems, the largest being corruption of the system where multimillion
dollars in federal subsidies are involved. It proposes reducing costs by eliminated
un-needed trips, without specifying which trips are currently not needed.

QUESTION 3: WHICH TRIPS ARE THEY CONSIDERING SUSPENDING?

ANSWER: Sr. Abreau Noble - said he could not answer that because he was there
to collect public input only on proposed tariffs.

What is clear is that this privatization will result in significant local job loss, of those
Viequenses and Culebrenses who work for the ferry system.

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Proposed Passenger Ferry Changes:

Proposed is an increase in passenger transport costs of over 500%. While we thank

the ATM for not proposing increases in cost of transport to local islanders, the ATM
provides no viable data that reflects impacts of the proposed increase to the local
tourism economy of Culebra, specifically where summer tourism benefits mainly
from an internal (Puerto Rico) tourism demographic that offers cultural similarities
of specific benefit to the small, local businesses. Unfortunately, and by its own
admission, the study supporting this increase from the perspective of costs to
visitors, is compromised by a very limited data set collected from a survey
conducted “between August 3rd, and August 10, of 2015.

The study fails to quantify specifically how many days of data were collected
between the limited range of days they reference. August falls just outside of
Culebra’s tourism peak and the 2015 information is now outdated and does not
reflect our post Irma and Maria tourism realities, nor the 2017 revelations of ATM
fraud and corruption, a critical problem to be addressed in order for future financial
sustainability of the service to be realized.

An informal survey with a small sample of July tourists revealed that summer visitors
would tolerate some increase in passenger ferry costs, if they were assured more
reliable service. Our visitor data for the Reserve on Culebra, collected from April
2017 to present indicates a profound impact to local tourism, specific to internal
tourism demographic in the summer with an decrease of about 100 persons at Playa
Tamarindo, during peak hourse after the hurricane.

Currently the ATM distinguishes locals from residents using licenses, and there was
consensus expressed at a July 25, 2018 meeting of residents and business owner that
this system is not working. Also it does not provide a mechanism for local students
to identify themselves, if they don’t yet have a drivers’s license. The community
also expressed concerns that it feels insulted by a plan that would charge returning
family members a visitors rate, for family that have since moved or been forced off
island by the 2017 storms. The consensus was that this issue alone, could in no way
be rectified given ATMs current limited communication with the community and time
limits imposed by the very ambitious Sept start date of these fare changes.

Should the ATM implement an increase in passenger ferry costs, it must consider the
implementation of PR Law 193, 2004 which requires the agency collect $2.00 from
every visitor arriving by ferry or plane and provide this to the the Authority for the
Conservation and Development of Culebra, to help with resource management on
the island.

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Cargo Ferries

Regarding proposed cargo increases, the increase in tariffs presented by the

Maritime Transport Authority cannot be accepted for the following reasons:

1. The proposed deadline of September 1, 2018, does not comply with the law that
governs these proceedings of the ATM, specifically the "Uniform Law for the
Revision and Modification of Tariffs"Act No. 21 of May 31, 1985, as amended. To
our best knowledge from a copy of this law provided by a Puerto Rico Senator,
this law still allows for 60 days for public comments after the ATM publishes the
report of the public hearings.*

2. The tariffs provided in the proposed changes announcing the public hearings,
reflect current cargo costs presented as a range. This in itself appears to reflect
ongoing violations of ATM of Puerto Rico Law 21, 1985. This confusion on the part
of the ATM also makes the financial “benefits” of proposed tariff increases
impossible for either ATM, or the community to evaluate. The current rates for
certain cargo are presented as a range of costs in the official public notice
document, and do not so much as specify if this implies one way, or round trip.
We assumed one way. QUESTION 4: Was the data presented reflexive of fares
that are one way or round trip? ANSWER: Sr. Abreau Noble indicated he
thought it was one way. When we ask for specific cargo rates the ATM has
nothing posted, nor any official cost sheet to hand out. We believe this
demonstrates ongoing abuse of power by the agency that may imply serious civil
rights violations as cost for specific services has apparently been arbitrarily
applied for some time.

Specifically, this confusion is as follows:

A. Carros Pequeños y carros mediana: In addition to the civil rights

concerns presented by the cost range indicated, the proposed fare
increases for both are identical, which is a redundancy that appears to
reflect an error on the part of the agency.

B. Vehiculo de carga / cargo truck and Pickup Trucks and Vans: In addition
to the civil rights concerned presented by the cost range indicated, the
ATM fails to recognize the redundancy associated with cargo trucks, pick
up trucks and vans which all bear cargo license plates and are charged
more than non-cargo vehicles during marbete renewal. It appears that
this redundancy reflects an error on the part of the agency.

C. Current cost ranges are also presented for > 30 feet and for
construction vehicles that are > and < 30 tons. The confusion actually 4
 leaves proposed fares reduced for arbitrarily reduced for construction
vehicles by as much as 159.00 per trip during the week, when stated
purpose of increasing fares of other cargo clearly impacting locals and
quality of life of all locals on the island was to increase ferries to better
meat operational costs.

D. Proposed tariff changes are further confounded by changes in proposed

rates for weekdays and weekends which would disproportionately impact
the island’s weekend shoppers and also confounds any meaningful
analysis on cost benefits gained by these proposed changes for the
agency regarding return trip calculations.

E. The ATM proposes to effectively distinguish residents from visitors using

license as an ID, when this has failed to date. There is no proposal for
how to distinguish local students who don’t yet have a license, and
culebrenses returning to visit. The agency outlines no mechanism
described for a viable means to do this that can possibly be
implemented by September 1st.

The recent round trip costs obtained (hand written) from the Ayudante del Director
Ejecutivo in Fajardo, were as follows:
Auto compact: $26.00
Auto mediana: $36.00
Pick up: $59.00
Pick up 250: $69.00
Pick up 350: $79.00
Camion de volteo: $150.00
Camion cajon desde: $89.00
Flat bed y gruas: $89.00

Agency Transparency and Fiscal Sustainability

Many feel the current system failures are more linked to corruption than
inefficiency. In any event, it is difficult for the public to assess the potential
benefits of proposed fare increases in terms of financial benefits to improve existing
services in a system that completely lacks public accountability. For services of this
importance to the local communities, a method of public, fiscal transparency would
allow the many members of the Vieques and Culebra community the opportunity to
watch dog specifically the fiscal accountability concerns for their services. Such a
transparent system would likely have prevented the 5 years of overtime fraud from
occurring, which according to June 2017, El Nuevo Dia articles cost the public 3
million dollars. Also, while the ATM fraud was referred to the DOJ, there has been
no report issued by this agency in this regard and after a year after referral. The
5
ATM has therefore forced the public into this position of being limited to
commenting on impacts from proposed tariff increases without being presented with
any idea of potential benefits.

Going forward, a viable study is needed that reflects the post hurricane picture and
presents data from both the local community and visitors of the affordability,
accountability and financial sustainability of the service for both the passenger and
cargo fare changes proposed. While we understand the operational costs for
government have increased over the years, the Culebrenses have not benefited from
associated cost of living pay increases. To not take this into consideration could
result in cargo costs being passed onto the community which would force people off
island. To not allow the people a voice in the relocation of their ferry services on
the main island may be unconstitutional. We would like to see a local community
commission created that can provide a mechanism for consultation and input from
ferry users, and with full access to the fiscal data, so the many with serious interests
can provide fiscal oversight in a citizen watchdog capacity at no additional cost to
government.

*We are not lawyers and making the best interpretation of laws referenced in this document. We
reserve the right to submit written comments that could differ with statements made here by the
deadline for public comments depending on information provided by the ports authority today.

6
7/31/2018 Gmail - ponencia de CORALations

CORALations Culebra <coralations@gmail.com>

ponencia de CORALations 
1 message

CORALations Culebra <coralations@gmail.com> Tue, Jul 31, 2018 at 7:57 PM
To: nelson­torres@msn.com

Saludos:  
 
Adjuntamos nuestra ponencia con las respuestas del Sr. Abreau Noble.  
 
Gracias, 
 
­­  
Mary Ann Lucking  
Director  
CORALations  
P.O. Box 750  
Culebra, PR 00775  
www.coralations.org    
787.556.6234      
email:  maryann@coralations.org, coralations@gmail.com 
 
 
Trabajando con comunidades del Caribe para proteger y restaurar
sus arrecifes de coral.

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