Ferry Board Funds First Shore Charging Project, Reworks Electric Fleet Plan

The SF Bay Ferry board awarded its first shoreside electrification contract, a roughly $563,000 job to wire the Alameda maintenance base for charging before the first electric ferry arrives in mid-2027. The vote, plus adoption of a scaled-back fleet plan and an endorsement of the November regional transit tax, each passed 3-0 with only three of five directors present. Diesel above $7 a gallon and shrinking state and federal grants framed every decision.

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• Central Bay charging contract awarded 3-0 to Conjay Franke Electric at about $563,000, with five public speakers in support
• Fleet plan adopted: 22 vessels by FY2037, 10 electric, after one electric ferry was canceled and another conversion deferred
• Board endorses Nov. 3 Regional Transit Measure, worth about $6.49M a year to the ferry
• Diesel tops $7 a gallon against a $5 budget, and fuel surcharge options could come in November or December
• State climate transit grants cut deeply, with one program down 76% from planned levels

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Alameda Base Gets Its First Charging Upgrade

The basics: The Central Bay Operations and Maintenance Facility on the former Alameda Naval Air Station has 12 berths and serves as the agency's emergency operations center. Phase 1 adds "trickle charging," meaning slower overnight charging, at the three outermost berths.

Why it matters: This is the first landside project in REEF, the agency's electrification program. It must be ready before the first new electric vessel is delivered in mid-2027.

Where things stand: Phase 1 modifies existing structural and electrical infrastructure without new utility capacity. Phase 2, with Alameda Municipal Power, will add fast-charge capacity.

"Phase 1 electrification has been deliberately scoped to work within the facility's existing electrical capacity," said Minh Tran, Project Manager, Engineering and Capital Delivery.

Conjay Franke's bid came in about 12% above the cost estimate. Staff said the price is within Federal Transit Administration variance limits and the approved FY27 budget. Staff described the firm as a century-old Northern California contractor that also did the facility's original electrical work.

The other side: The lowest-priced bid lost. Agency staff said that bidder "included with its bid a number of exceptions to the agreement that rendered their bid conditional and therefore non-responsive." No protest was filed. Board Chair James Wunderman questioned the term "trickle charging" and pressed staff on how a bid is judged nonresponsive.

Decisions and stakeholder impacts: The board approved Agreement 26-004. For: 3 (Wunderman, Board Member Pippin Dew, Board Member Rosanne Foust). Against: 0. Absent: 2 (Vice Chair Monique Moyer, Board Member Michael Henneberry).

Support came from a coalition of labor, business and local government:
- Arsh Singh Hothi, General Manager, Alameda TMA, said electrified capacity helps members meet trip-reduction targets and gives residents a reliable alternative to driving.
- Robert Estrada, President, Inland Boatmen's Union, cited new deckhand and crew jobs.
- Sly Hunter, Regional Rep, Masters, Mates and Pilots, also cited new positions.
- Abby Thorne-Lineman, Interim Director of Planning, Building and Transportation, City of Alameda, tied the project to Alameda Point growth and the city's climate plan.
- Samuel Reingout of the Alameda Chamber of Commerce cited better waterfront access for local businesses.

Wunderman noted the facility is named for Ron Cowan.

What's next: Construction starts next month, with preliminary acceptance this winter. Final acceptance is set to coincide with delivery of the first vessel in mid-2027.

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Fleet Plan Absorbs Federal Setbacks

Why it matters: The updated plan keeps an aggressive decarbonization timeline. But it rests on terminal charging projects that have no funding yet.

Where things stand: The fleet grows from 18 boats today to 22 by FY2037. Ten will be electric: eight 400-passenger and two 150-passenger vessels. Terminals will have charging capacity for eight, and the last standard diesel boat retires by 2029.

Seven vessels will be replaced, including the Intintili, Mare Island and Peralta and later the Gemini-class boats. The goal is to consolidate the fleet into standard classes. Replacement cost is "just a hair under $480 million," said Mike Gowdy, Director of Planning.

The plan reflects three changes first laid out in the quarterly capital report:
- The third 150-passenger electric vessel was canceled.
- The Hydrus electric conversion was deferred.
- The canceled vessel's funds now go to a low-emission diesel boat.

"Changes in the federal funding environment eliminated the funding pathway for the 3rd vessel," said Tim Hanners, Chief Capital Officer.

Gowdy described the trade-off this way: "The upside to losing that vessel is we're able to reprogram those funds to purchase a low-emissions 320-passenger diesel boat."

The Hydrus conversion stalled because there is no funding for charging infrastructure. The work would also take the vessel out of service for about a year. Staff said the air district was notified.

The other side: Electrification at the Harbor Bay and Oakland terminals is still unfunded. "At this time, those projects are unfunded," Gowdy said.

The broader capital program totals $501M, with about $110M in pending or unfunded needs. Only about $47M of a $148M FY26 capital budget was spent. Staff blamed delays in permitting, funding, design verification and procurement.

Decisions and stakeholder impacts: The plan was adopted with no public comment. For: 3 (Wunderman, Dew, Foust). Against: 0. Absent: 2 (Moyer, Henneberry).

The SFO question: A map in the plan prompted Wunderman to ask about the airport. "What is the feasibility of at least a conversation with SFO about a terminal in that area?" he asked.

Foust offered to help. She suggested starting with the City and County of San Francisco as landowner and cited Burlingame Bayfront and Coyote Point as possible sites.

Executive Director Seamus Murphy recalled that "we didn't get a really warm reception from the airport about the idea of ferry service more directly serving the airport" when the service vision was approved. Murphy agreed to revive the discussion. Wunderman said a Burlingame stop could help the Redwood City project.

What's next: Staff will apply through MTC for FTA vessel replacement funds.

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Board Backs November Transit Tax

The basics: The Regional Transit Measure, created by SB 63 (the Connect Bay Area Act), qualified with more than 230,000 signatures. It is a 14-year sales tax: a half-cent in Alameda, Contra Costa, San Mateo and Santa Clara counties, and one cent in San Francisco.

Why it matters: Without new revenue, the ferry faces a fiscal cliff in 2034. Partner transit systems face cuts sooner, and those cuts would hurt the connections ferry riders depend on.

Where things stand: Revenue would split 63% to operations, 32% to local transportation improvements and 5% to rider-focused improvements. About a quarter percent would go to MTC for administration.

"SF Bay Ferry is projected to receive about $6.49 million annually beginning in 2027-2028," said Lauren Gilardi, who presented the item for staff. Gilardi added that the agency has "not prepared any service reduction scenarios should this measure not pass." The endorsement is a statement of position only and does not authorize spending agency funds on advocacy.

Supporters included:
- Robert Estrada, President, Inland Boatmen's Union
- Sly Hunter, Regional Rep, Masters, Mates and Pilots, who pledged to educate voters and members
- An Alameda Chamber of Commerce representative
- George Spies of Seamless Bay Area, who said 1,000 volunteers gathered signatures

The other side: Spies said those volunteers heard public concern about the sales tax structure. Wunderman warned that down-ballot placement and cost-of-living pain could make the race close. "Somebody is gonna vote against it out of that group because they don't know what it is," he said.

Decisions and stakeholder impacts: The board endorsed the measure. For: 3 (Wunderman, Dew, Foust). Against: 0. Absent: 2 (Moyer, Henneberry).

What's next: Voters decide Nov. 3.

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Fuel Spike, Grant Cuts Squeeze the Budget

Why it matters: Fuel is just over 20% of operating costs. Sustained price spikes could force fare surcharges or service cuts.

Where things stand: "Last week the price paid exceeded $7 per gallon for the first time," said Lauren Gradia, Chief Financial and Administrative Officer. The fiscal-year average so far is above the budgeted $5.

Under guardrails from the budget, staff will bring surcharge options in November or December if the July-November average exceeds $5.20. Gradia said she is evaluating ways to cut fuel use without affecting riders. By comparison, last year's spring spike still left fuel $1.3M, or 9%, under budget at $3.77 a gallon.

Preliminary FY26 results look solid for now:
- Revenue: $122M
- Expenditures: $119M
- Unrestricted reserves: $28.2M
- Fare revenue: $17.64M, 12% above budget, with ridership up 15%
- Operations: 12% under budget, driven partly by vacancies and incomplete maintenance

Projections show reserves "crosses that minimum reserve level in fiscal year 2033," Gradia said. Wunderman said the funding committee he and Moyer are working on "is going to be really important."

The other side: State and federal support is shrinking.
- TIRCP: about $400M total for FY27, versus a normal $700M
- LCTOP: about $48M. "That represents a 76% reduction from those levels envisioned in SB 840," Gilardi said.
- AHSC: $190M, about 80% below normal

Staff tied part of the drop to a May CARB decision granting $2B in free credits, which reduced auction proceeds. Interest on GGRF balances, about $500M a year, starts flowing to these Tier 3 programs in 2027-28.

At the federal level, Murphy said "the administration is still, you know, really firmly reticent to fund any clean energy projects," and grants remain held at the FTA. Wunderman called the state cuts a slap in the face to transit and urged a better strategy as a new governor and legislative session arrive.

What's next: Audited statements are due in December. Murphy will ask federal advocates about finding a Republican champion. Staff named State Senator Jesse Arreguin and the Senate transportation chair as state allies.

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• Consent calendar approved 3-0, with items 6B and 6F pulled for separate 3-0 votes.
• 6B: State LCTOP allocation for the Intintili's electric replacement; Murphy said "we have all the federal funding that we need."
• 6F: Marine Group Boatworks' MV Mare Island repair award corrected from $347,841.38 to $374,841.38 after transposed digits.
• Uber pilot: A $22,000 Uber Innovation Fund grant offers up to $2.85 off rides to Alameda Seaplane Terminal through year-end.
• Nov. 2 schedule change adds Seaplane, Harbor Bay and Richmond trips and cuts one Vallejo run; 99% of riders report satisfaction.

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Looking ahead: The Berkeley Pier Ferry won SB 149 certification on Sept. 16, which caps CEQA litigation at 270 days "to the extent feasible." The draft environmental impact report for the Redwood City Ferry Terminal has been released. Staff will report SB 63 results at the next meeting. The board adjourned in honor of maritime consultant Charlie Walther.