PALMER --The ferry Susitna isn't done with the Matanuska-Susitna Borough yet.
The Mat-Su Assembly learned this week that repairs to the water-damaged engines of the borough's beleaguered, never-used passenger vessel could cost nearly three times more than expected -- $3 million instead of $1.1 million.
Borough Manager John Moosey gave the Assembly the bad news during a special meeting Wednesday.
The 195-foot Susitna was supposed to carry passengers and cars across Knik Arm, but failures to get funding for landings left the ferry at a dock near Ketchikan, where it was built. It's cost the borough more than $2 million since 2011. Borough officials say they're continuing to negotiate with the federal government on its demand that the borough return $12.3 million in grant funds spent on the ferry.
Heavy, sideways-blowing rains last year damaged three of the ferry's four engines when water entered the right-angled stacks, Moosey said in an interview Thursday.
Efforts to sell or even give away the ferry faltered until the borough Assembly in early September authorized the $1.75 million sale to the Philippine Red Cross. The borough needs to fix the engines before the Red Cross takes ownership. That was supposed to happen by March 31.
The borough planned to do the repairs at Ward Cove, where the former U.S. Navy prototype has idled since 2011. But a New York engineer hired by the company insuring the ferry, Lloyd's of London, found on a December visit that more extensive repairs are necessary, including a full removal and rebuilding of the engines, Moosey said.
"They felt it was way too risky to repair those in place," he said.
The ferry needs to go to Seattle for that kind of work, so Moosey is asking the Assembly for almost $2 million out of another borough account -- a land management fund that the manager says will be repaid after the insurance company pays for the repairs.
Lloyd's won't cover the work until it's done, however, and Moosey said the borough is "working through" discussions with the insurance company about the repairs.
A resolution to earmark the funds will be on the Assembly's agenda for introduction on Tuesday. A special meeting is scheduled for hearing and decision on Feb. 23.
The borough will also need to get an extension from the Red Cross to complete the additional repairs, Moosey said.
The Susitna could depart, under tow, for Seattle as soon as Friday.
Moosey said he's been told the work will take six weeks.
"But this is the M/V Susitna," he said. "Things never go as planned."