Ferry Board Hands Blue and Gold New 10-Year Operating Contract

The San Francisco Bay Ferry board locked in who will run its boats for the next decade, voting 5-0 on Nov. 13, 2026, to award incumbent Blue and Gold Fleet a new operations and maintenance contract after a three-way competition. The board also approved a one-year pilot for ads on ferry exteriors and moved $1.3M toward Berkeley's long-closed pier, both unanimously, as staff celebrated voter approval of regional transit funding.

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• Blue and Gold Fleet wins 10-year operating contract, 5-0, over Hornblower and Land and Sea
• Exterior ad pilot approved 5-0 for up to four vessels, pending a Port of San Francisco code exemption
• $1.3M budget shift advances Berkeley Pier Ferry design, but the $139M project has no construction funding
• Measure RTM passage gives the ferry system revenue to address a 14-year fiscal cliff

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Blue and Gold Keeps the Helm

Why it matters: The contract sets the operating, maintenance and cost framework for the next decade. Board Chair James Wunderman framed the stakes plainly: "This is probably the most important decision, as Seamus said, that this board's going to make in a while."

Where things stand: Staff said the process began two years earlier with Maritime Consulting Partners, moved through a request for information and then a request for proposals released after board input. Three firms bid: Blue and Gold, Hornblower and Land and Sea. Scoring weighted technical qualifications at 55%, price at 35% and workforce retention certification at 10%. Blue and Gold won on a narrow technical margin and offered the best price.

The new deal restructures how the agency pays. "Vessel operating costs adjust with service hours, while overhead and management costs are established as fixed fees," said Joe Ramey, Project Development and Controls. Fuel and some maintenance items remain pass-throughs, and mobilization runs about six months. "Our projected FY28 operation costs are actually lower than our existing FY27 budget costs for operations," said Tom Hall, Director of Operations and Customer Experience.

The other side: Vice Chair Monique Moyer questioned why the staff report cited $38M for the first year and $489M over 10 years while the resolution showed more: "...the resolution has higher numbers. What is the differential?" Steve Miller, counsel with Hanson Bridget, answered: "The staff report numbers that you just mentioned do not include pass-through expenses or mobilization costs."

Board Member Pippin Dew noted that the losing bidder, Land and Sea, presented innovative passenger-experience ideas and asked whether the agency could adopt them regardless of the award.

Decisions and stakeholder impacts: Wunderman moved the award and Board Member Michael Henneberry seconded. The vote was For: 5 (Wunderman, Moyer, Dew, Foust, Henneberry), Against: 0, Absent: 0. Board Member Rosanne Foust called the process a model for other agencies, saying "it wasn't a check-the-box exercise." Henneberry said the deal "will bring certainty to our crews."

Labor and the operator lined up behind the award. Robert Estrada, President, Inland Boatmen's Union, praised agency management and called Blue and Gold an exemplar employer. Pat Murphy of Blue and Gold Fleet credited employees and introduced the firm's contract, operations and engineering leads. Staff said riders should not notice a change when the contract begins.

What's next: Mobilization starts around January, and the contract takes effect July 1.

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Ads Come to Ferry Hulls, for Now

Why it matters: Exterior wraps could net an estimated $200,000 in year one. Directors and a rider warned the new revenue could come at the cost of the ferry's brand.

Where things stand: Hall said the Port of San Francisco's Harbor Traffic Code bars off-site exterior ads on vessels. Staff will seek an exemption for public operators through the Port's advisory committees and Commission in late winter. The pilot would run one year after launch, with no more than four vessels wrapped at a time.

The terms improve on current interior ad deals. SF Bay Ferry would take a 50% revenue share, up from 25% to 40% on interior terms, and Ballyhoo Media would pay for materials and installation. Window materials must preserve views, alcohol ads are barred from exteriors and Executive Director Seamus Murphy can suspend the pilot. Dew cited a benchmark: "Washington State does it in ferry, and they actually get about $450,000 per year in that fare revenue or in that ad revenue."

The other side: Skepticism ran high on the dais. "I'm a little nervous about it," said Wunderman, who added that he found some AI-company ads offensive: "I would hope we would be able to turn that down." Miller cautioned that courts treat vehicle exteriors as non-public forums, saying a vehicle exterior "is always found not to be what's called a public forum in First Amendment jurisprudence." Murphy said of AI ads, "we can look into that as a part of this 1-year pilot experience."

Henneberry, who previously opposed the idea, agreed to give it a year but didn't hide his view: "this looks cheap. Wrapping a ferry looks cheap." He said he might vote no on any later step. Moyer pressed for a cap on how long a single ad can run: "I do think we — this is a pilot, and we do have our reputational brand to protect."

Public commenter Isabel Hodge, a ferry rider, backed revenue efforts but opposed turning boats into floating billboards. She warned against AI ads and urged design guidelines and art wraps.

Decisions and stakeholder impacts: Dew moved approval of the pilot and policy amendments, which passed For: 5, Against: 0, Absent: 0. Ballyhoo Media gains a new canvas, and the agency gains a test revenue stream. Riders absorb the visual trade-off, and directors kept a suspension switch in reserve.

What's next: Port advisory committees and the Port Commission take up the code exemption in late winter. Directors asked staff to consider ad-duration limits.

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Berkeley Pier Gets Design Money, Not Construction Funds

Why it matters: The pier would be the system's first terminal built for zero-emission ferries. Liza McNulty, Capital Improvement Program Manager, City of Berkeley, was direct about the gap: "no construction funding has yet been allocated for this project."

Where things stand: Chad Mason, Capital Planning Manager, said the amendment raises the FY27 budget from $110,000 to $1.41M. The project's $3M Regional Measure 3 (RM3) allocation is unchanged. He corrected the board item to clarify that the $139M project estimate includes dredging.

McNulty said the 100-year-old pier has been closed since 2015. Design is at 60%, with 90% design due before year-end and permits to be submitted this winter. She targeted construction readiness in spring 2028 and put construction at $106M in 2026 dollars. The scope includes a Class 4 cycle track (a bike lane physically separated from traffic) on University Avenue, an expanded AC Transit stop, a plaza with restrooms, Bay Trail improvements and public art.

Parking is the public's top worry. McNulty said Berkeley has more than 550 days of car-count data collected since 2021, and every analysis found "there is enough parking for shared use with recreation visitors and ferry riders" if management tools are in place. A second version of the Parking Management Implementation Plan followed outreach and is a living document. Foust and Wunderman praised the shared approach. Moyer said "our waterfront really is for everyone."

Decisions and stakeholder impacts: The amendment passed For: 5, Against: 0, Absent: 0. It lets Berkeley be reimbursed for design, environmental review and permitting. A Berkeley resident spoke in support, saying the project could bring energy to West Berkeley and improve transit options near the train station.

What's next: Berkeley's environmental impact report certification was scheduled for the following week.

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Measure RTM Win and Parade Ridership

"Measure RTM passing was by far the most meaningful thing for our organization," said Murphy. He described RTM as a sales tax increase in five Bay Area counties. Because it qualified by petition, it needed only 50% to pass. Murphy said it cleared 50% in every county, including 77% in San Francisco, and addresses the ferry's fiscal cliff within the 14-year window. He said the revenue will feed Finance Committee projections.

Foust cited 63% support across the five counties. She credited the board's October endorsement, 225 endorsing organizations and a two-year coalition including SAMCEDA, the Bay Area Council and SPUR. She also urged agencies to spend the new money carefully. Moyer thanked voters and crews but called the measure no panacea.

Ridership is also trending up. Carrying the WNBA champion Golden State Valkyries to their parade drew about 31 million viewers across 26 media pieces. Lexi Matsui, Communications and Marketing Manager, estimated "we would have to spend close to $300K for that kind of coverage." Hall said parade-day ridership ran "44% higher than the previous 10 Wednesdays," the fourth-highest weekday ever. Gabriel Chan, Transportation Planner, reported October ridership at about 99% of 2019 levels and 17% above October 2025.

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Minor Items

• Consent calendar: Five items passed 5-0; specific items were not identified.
• Zero-emission readiness: Wunderman relayed lessons from a German hydrogen train operator and urged building redundancy as battery ferries near delivery.
• Charging infrastructure: Dew described visiting JT Marine's universal charging floats and stressed Solano County's ridership and need.

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Looking Ahead

The Port of San Francisco's code exemption, expected in late winter, will decide whether the ad pilot launches. Construction funding remains the open question for the Berkeley pier. Blue and Gold's new contract begins July 1.