Reply to County Brief by Fair Fares, LLC

Reply to County Brief by Fair Fares, LLC

Hon. Kathryn C. Loring

Hearing Date: October 14, 2025, 1:30 PM

IN THE SUPERIOR COURT OF WASHINGTON

FOR SKAGIT COUNTY

STEPHEN D. ORSINI, et al.,

Petitioners,

Case No.: 25-2-00131-29

v.

THE BOARD OF SKAGIT COUNTY

COMMISSIONERS, et al.,

Respondents.

PETITIONERS’ REPLY BRIEF

ON APPEAL

Petitioners respectfully submit this Reply to Respondents' Brief on this appeal.

Respondents' defense of Resolutions R20250009 and R20250015 rests on a portrayal of a

thorough, data-driven process that purportedly justifies dramatic fare increases and the abrupt

elimination of non-expiring punch cards. However, this characterization ignores critical flaws in

the process, including inflated cost projections, disregard for public input and economic impacts

on Guemes Island residents, and failure to consider viable alternatives. Respondents' claims fail

under the arbitrary and capricious standard, as their decisions were willful and unreasoning,

disregarding substantial facts in the record.

I. OBJECTION TO OVER-LENGTH BRIEF

As Respondents note, this appeal is governed by the Rules of Appellate Procedure for

Appeals of Courts of Limited Jurisdiction (“RALJ”). Resp. Br., at 8. The rules provide that the

briefs of appellant and respondent “shall not exceed 18 pages.” RALJ 7.3(b). Petitioners’

Opening Brief complies with this rule. Respondents have submitted a 25-page response brief,

without prior leave of court, prejudicing Petitioners. See Id. (“For good cause, the court may

PETITIONERS’ REPLY ON APPEAL – P. 1

 

grant a motion to file an over-length brief.”) Petitioners object and request that the Court strike

Respondents’ Brief, or limit consideration to the first 18 pages of the brief.

II. REPLY TO RESPONDENTS’ FACTUAL ASSERTIONS AND ARGUMENT

A. Petitioners Have Timely Appealed Resolution R20250009.

Respondents suggest that Petitioners are barred from challenging Resolution R20250009

because the Board had previously adopted R20240282 “limiting the future use of paper punch

cards,” on December 20, 2024, and such resolution “was not appealed.” Resp. Br., at 5.

As discussed in Petitioners’ Opening Brief, there was confusion regarding the agenda for

the December 20, 2024 meeting from the outset. Pet. Br., at 6. Resolution R20240282, as

introduced at the hearing, stated that “any and all paper punch cards” could not be used after a

certain date, but also expressly referred to punch cards with “expiration dates.” See CP 883-84

(“will be valid only until the expiration date printed on the card”; “regardless of the printed

expiration date”). When questions as to the status of “non-expiry” cards came up at the hearing,

Commissioner Wesen acknowledged that “we’re going to figure out a system how we can do

some kind of credit or something” to address such cards. CP 926. After further review, the

Board adopted Resolution R20250009, which expressly stated: that “subsequent to the adoption

of R20240282, it was determined” that the County has sold two types of cards with no printed

expiration date; that there “may be public confusion” as to the status of such cards; and that it

was “SUPERSEDING R20240282” accordingly. CP 1086 (emphasis added); see also CP 1090

(distinguishing “dated paper punch cards” and “no expiry” cards).

Petitioners were not obliged to appeal a resolution that had been superseded. Resolution

R20250009 was the operative “final action” to terminate cards that were sold with no expiration

date.

B. Termination of “Non-Expiry” Cards was Arbitrary and Unsupported.

Respondents conflate regular multi-use punch cards with “non-expiry” punch cards.

Resp. Br., at 11-14. Petitioners have not claimed that the regular multi-use paper punch cards

PETITIONERS’ REPLY ON APPEAL – P. 2

 

should not have been terminated as part of a transition to electronic ticketing. Nor are Petitioners

challenging the County’s efforts to shorten the expiration time for single ride or multi-ride passes

(CP 330, 502, 606-07), or enforce expiration dates on existing cards (CP 604 (comments of

Public Works Director Grace Kane, as quoted in Respondents’ Brief)). There was no

consideration of passes with no expiration date until the concerns were brought up by citizens at

the December 20 hearing. CP 900, 921, 926.

Non-expiry punch cards were sold with explicit promises, creating contractual

obligations to purchasers. During the COVID-19 pandemic, the County encouraged residents to

purchase additional punch cards, generating $175,586 in revenue, expressly representing that

these cards would remain valid indefinitely. CP 64, 67-70. The County accepted these

contractual prepayments for future rides without any caveat of future termination. CP 78. The

County sold numerous additional “Convenience Cards” from 2018 to 2023, which were marked

“no expiry” or “valid until used.” CP 734, 1090.

The County does not identify any justification for breaching its expressed promises. The

County’s new e-ticketing system uses scannable QR codes for all fares, including “multi-ride”

fares and free rides for youth 18 and under. See CP 719; see also CP 610 (“[W]e can make

anything work in the E ticketing system. The question for the board is do you want to offer a

discount and do you want to have an expiration date.”) The County offered no reason why non-

expiry punch cards could not be converted to e-tickets with QR codes, to honor contractual

obligations.

C. The Alleged Funding Shortfalls and Rate Study Were Flawed and Inflated.

Respondents claim a cumulative farebox shortfall of $1.6 million from 2018 to 2023 to

support a 65% fare recovery of operational costs. Resp. Br. at 2-3. But during this same time

period, the Ferry collected $1,267,754 in new fares through the vessel replacement surcharge,

and $350,740 in Federal Ferry Boat grant funding. The County also chose not to reimburse lost

revenue which became available through the Federal Covid relief funds despite promises to the

PETITIONERS’ REPLY ON APPEAL – P. 3

 

contrary. CP 49, 78, 433. In total, these non-attributed revenues exceed the stated $1.66 million

“farebox shortfalls.”

Respondents rely on the 2023 KPFF rate study for projections (Resp. Br. at 3), but

selectively applied its findings. The study recommended phased increases over five years at an

average of approximately 14% annually and stressed tracking ridership to assess fare elasticity

CP 148, 154 (“a larger fare increase is likely to cause a greater reduction in demand”). The

Board, however, adopted hikes ranging from 22-82% without such monitoring (CP 146-79).

The KPFF study also endorsed multi-ride discounts of 15% to support affordability (CP

146-79), but the Board eliminated these, without justification, amplifying the effective increases.

Federal grants and reimbursements were not fully accounted for in the methodology (CP 433).

D. The County Has Improperly Incorporated Capital Costs In Its O&M Projections.

As discussed in Petitioners’ Opening Brief, the County inflated the projected O&M costs

for the ferry by including the costs of refurbishing the MV Guemes to accommodate new

engines, as part of its regular haul-out. This additional work increased the cost of the dry-dock

to $1.6 million, well in excess of the usual costs of $500,000 to $1 million.

Respondents quote staff representations that the haul-out did “not include capital costs,”

and correctly point out that the $1.6 million costs did not include “the purchase of engines or

outdrives.

” Resp., at 17 (emphasis added). But they fail to address the substance of Petitioners’

argument. The Nichols Bros. contract included all of the associated costs of refurbishing the

vessel to accommodate installation of the new engines. See CP 741 (“we know we’re going to

have a big shipyard in 2025 where we put on the new engines”). These associated costs were not

“routine dry-docking as associated repairs,” but rather “major vessel refurbishment.” CP 233,

92-98; WAC 136-400-030. They should not have been counted as O&M; see Earl vs. Whatcom

County. This artificially inflated the County’s fare projections.

E The County Excluded Significant Revenues from Its Fare Calculation.

The County argues that it was not obliged to include “compensated amounts” in its fare

PETITIONERS’ REPLY ON APPEAL – P. 4

 

calculations because nothing in prior resolutions “required inclusion of other funding.” Resp.

Br., at 18. Funding received by the County pursuant to the Federal Ferry Boat Program and State

“Youth Ride Fee” program is plainly revenue that serves to defray the County’s operating costs

for the ferry, and should be included in O&M calculations.

F. The County’s Public Process Was Limited and Did Not Incorporate Key Feedback.

Respondents describe a process with hearings, work sessions, and adjustments. Resp. Br.

at 3-5. While some engagement occurred, the record shows substantive concerns -- such as

affordability impacts (e.g., $420/month commuting costs; CP 471) and alternatives like grants or

efficiencies (CP 433, 766-771) -- were not adequately addressed in the final resolutions. Rather

than mitigating these concerns, the Board significantly reduced multi-ride discounts, escalating

the originally proposed ~30% fare increase to effective hikes of 30-90% for frequent users, and

in particular, senior/disabled riders. CP 556-76; see also Opening Br. at 4-5 (noting additional

increases for multi-ride 20-trip vehicle and 25-trip passenger punch cards). This response

directly contradicted public input on affordability, exacerbating burdens on riders without

justification.

G The Board Failed to Consider Alternatives and Equities.

Respondents point to comments from Public Works Director Kane, suggesting that

increase in fares “is not just a financial problem but an equity issue.” Resp. Br., at 10. Ms.

Kane’s comments underscore the true equity issue at hand, which Respondents ignore: The

Guemes Island Ferry is an integral part of the County's road system, and serves as the sole route

on and off the island for its residents. Unlike every other road and bridge in Skagit County, the

ferry is not fully funded through general road funds, and instead relies on daily payments from a

captive ridership, who must rely on it to access work, schools, and essential services. The

County may expend millions for culverts or bridges benefiting small numbers of residents (not

on Guemes Island), yet such infrastructure is funded collectively without user-specific tolls. This

is the nature of shared public infrastructure.

PETITIONERS’ REPLY ON APPEAL – P. 5

 

The Board’s actions to increase fares, based on inflated cost predictions and exclusion of

alternate revenues, force residents to personally pay an even greater share of costs for basic

mobility. The County’s 2025 schedule increased fares by an average of 30%, and up to 81% for

senior/disabled multi-ride passes. CP 1032-33.1

H. The Challenged Resolutions Were Arbitrary and Capricious.

There is no dispute that a decision is arbitrary and capricious if willful and unreasoning,

in disregard of facts and circumstances. Hillis v. Dep't of Ecology, 131 Wn.2d 373, 383, 932

P.2d 139 (1997); see Resp. Br., at 9-10. The County’s arbitrary termination of unused, “non-

expiring” fare cards (R20250009), and dramatic increase of fares based on inflated cost

projections and disregard for available revenues (R20250015) meet this standard.

Petitioners rely on their Opening Brief for remaining issues not addressed herein.

III. CONCLUSION

Respondents' brief fails to rebut Petitioners' showing that the resolutions were arbitrary

and capricious. The Court should reverse, invalidate the 2025 fare increase and punch card

elimination, and remand for a rate-setting process that properly considers actual ferry operating

costs and revenues.

Respectfully submitted this 3rd day of October, 2025.

LAW OFFICE OF CARL J. MARQUARDT PLLC

/s/ Carl J. Marquardt

Carl J. Marquardt (WA Bar No. 23257)

1126 34th Avenue, Suite 311

Seattle, WA 98122

Tel: (206) 388-4498

Email: [email protected]

Attorney for Petitioners

1 Respondents claim multi-ride discounts “are based on frequency of use, not age.” Resp. Br., at

21. In fact, the County increased fares “senior/disabled” fares by 51% (non-peak) and 74%

(peak) for passengers, and 47% (non-peak) and 81% (peak) for vehicles. CP 1032-33, 1122.

PETITIONERS’ REPLY ON APPEAL – P. 6

 


Notes

The County has no right to Reply to our Reply. Next major event, Hearing, Skagit County Court House, 1:00pm, October 14.