Belford ferry riders will pay more if Seastreak takes over, says NY Waterway

FREEHOLD - Monmouth County ignored the requirements in its own Request For Proposal, along with a more favorable bid, when it awarded Seastreak a contract to provide ferry service between the Belford section of Middletown and Manhattan, the losing bidder said in a lawsuit.

NY Waterway, which has operated the service for 20 years, said the county's decision would force commuters to pay $13 more per round trip and urged a judge to stop the contract.

"Nothing about this decision adds up or meets a basic legal standard," Armand Pohan, NY Waterway's president, chairman and chief executive officer, said in a statement.

NY Waterway filed the lawsuit Wednesday evening in state Superior Court against both Monmouth County and Seastreak. The Weehawkin-based ferry operator is asking a judge to issue a temporary and permanent restraint to prevent the county's contract with Seastreak from going into effect.

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The lawsuit was filed two weeks after county commissioners disqualified NY Waterway's bid over what the ferry operator said was a technicality and awarded the Belford-to-New York ferry route to Seastreak.

Seastreak operates routes among Atlantic Highlands, Highlands, downtown Manhattan and the East Side of Manhattan. If the new bid takes hold, it will take over the Belford route in October, giving it access to the West Side of Manhattan as well.

The commissioners' decision set off protest from executives from NY Waterway, which has operated the route from its onset 20 years ago.

NY Waterway officials said they proposed 16 trips a day during the week — seven in the morning leaving from Belford and nine in the afternoon and evening from Manhattan — for $21.50 each way.

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As part of the contract, NY Waterway proposed paying the county $2 per passenger for the first 2,500 passengers daily and then $3 per passenger after that, along with 10% of the gross revenue of all concessions, according to the lawsuit.

By comparison, Seastreak proposed 11 daily trips during weekdays — five in the morning and six in the evening — with a ticket price of $28 one way, according to the lawsuit.

Seastreak offered to pay the county base rent of $2.10 per passenger and additional rent of 3% of the gross revenue of all concessions, the lawsuit said.

Monmouth County sided with Seastreak, saying NY Waterway failed to meet a requirement in the Request for Proposal that it have Consent of Surety of $2 million, a performance bond that would ensure the service could continue in case the company ran into trouble.

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In the lawsuit, NY Waterway took issue with the requirement. It said it had a $2 million letter of credit from Investors Bank. It noted it has used a letter of credit since its first contract with the county. And it said the most recent RFP indicated a letter of credit could be posted in lieu of a bond.

It also questioned whether Seastreak could deliver on the service, saying its competitor didn't have legal landing rights for one of its four destinations, although it wasn't clear which one.

Monmouth County Commissioner Director Thomas A. Arnone said in a statement that the county followed a formal procurement process. "NY Waterway’s bid was noncompliant because it failed to submit a Consent of Surety, a mandatory bid item, with its bid proposal. The county looks forward to the opportunity to present our position to the court for adjudication."

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Seastreak executives said Thursday they were reviewing the lawsuit but, "we are confident in our ability to provide outstanding service to people that rely on ferry transportation between Belford and Manhattan."

Michael L. Diamond is a business reporter who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com.

This article originally appeared on Asbury Park Press: NY Waterway: Seastreak Belford deal would cost NJ ferry riders more