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Port staff outlines proposed ferry landing fee increases to shore up terminal shortfalls
Summary
Port staff presented updated landing-rights language and proposed fare and landing-fee increases to reduce operating shortfalls at Port-owned ferry terminals, including a 15% increase at downtown terminals and a China Basin plan that would raise per-landing fees from $20 to $50 plus $0.50 per passenger; operators and WETA urged caution.
Port staff presented an informational report on landing-rights agreement updates and proposed increases to ferry and excursion landing fees at Port-owned terminals. Maritime Director Peter Daly said the Port—s landing-rights agreement was updated to reflect insurance, indemnity and federal security requirements, and staff will continue discussing insurance impacts with the City—s risk manager and operators.
Daly said the Port handles over 3,000,000 ferry passengers annually and is subsidizing terminal operations. Staff reported a $425,000 operating shortfall in fiscal year 2008—09 and noted deferred capital maintenance for the downtown and China Basin facilities. To narrow ongoing operating losses, staff proposed a 15% fee increase at Downtown Ferry Terminal (Gates B and E) effective July 1, with an additional 15% proposed for the following July. For the Ballpark (China Basin) terminal staff proposed raising landing fees from $20 to $50 per boat landing plus a $0.50 per-passenger facility fee; staff said the increased rates would reduce but not eliminate the Port—s subsidy and that after increases the Port would still subsidize an estimated 31% of downtown terminal costs and roughly 52% of China Basin costs.
Representatives of ferry operators asked the Commission to consider alternatives to preserve ridership and financial viability. Jim Swindler of Golden Gate Bridge District—s Ferry Division thanked staff for outreach and suggested using parking revenues to cross-subsidize terminal costs rather than raising landing fees that could depress ridership. Nina Reynolds, executive director of the Water Emergency Transportation Authority (WETA), said public ferry services are subsidies by design (she cited 40—60% subsidy ranges) and cautioned that added costs could threaten service viability as WETA negotiates assumed services in Alameda and Vallejo.
Staff said they will continue working with operators and the San Francisco Bay Water Transit Authority and bring refined proposals back to the Commission within weeks for further consideration. Because the item was informational, the Commission did not take formal action on the proposed rate increases at the meeting.
