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Executive Summary • DRAFT Ferry Financial Feasibilitv Studv & Cost -Benefit and Economic I
<br />Operating Subsidies — Operating subsidies are the net difference between operating costs and
<br />fare revenues as shown in Table E-3. The annual operating subsidies are most often the
<br />responsibility of public agencies, although private funding coverage is sometime present. While
<br />projected ridership meets WETA's farebox revenue ratios, the service would require operating
<br />subsides, like most public transit systems. However, estimated annual subsidies decline over
<br />time as ridership increases.
<br />• Oakland Route — annual subsidies fall from $2.9 million in 2025 to $2.4 million in 2034.
<br />• San Francisco Route — annual subsidies fall from $2.2 million in 2025 to $1.7 million in 2034.
<br />• Combined Route — annual subsidies fall from $5.1 million in 2025 to $4.1 million in 2034.
<br />Table E-3: Summary Assumptions, Costs, and Financial Metrics
<br />Sources: CDM Smith; WETA; Economic & Planning Systems
<br />1 "Combined" service assumes both routes start operation at the same time. If both services are pursued, it may be that
<br />start dates are staggered.
<br />z Assume two vessels and a shared spare for each route, resulting in five new vessels for both routes. Estimate ferry costs
<br />at $16 million each, depending on size and technology.
<br />3Costs for terminal are in FY 2019$
<br />Potential Operation Funding Sources — Unlike Contra Costa County which subsidizes ferry service from
<br />Richmond, San Mateo County does not have an existing, local funding source to subsidize ferry
<br />service. Measure A Ferry Program funding is only allowed for capital related costs; there is no local
<br />funding source currently identified for ferry service operations. However, the City may require new
<br />office development to participate in a transportation demand management association, levy an
<br />assessment or special property tax, or use transportation impact program fees to help finance ferry or
<br />connecting shuttle service. Regional Measure 3, although currently tied up in court, has programmed
<br />funds for new or expanded ferry service. These funds are not programmed for any specific service and
<br />routes must be operational ready to be eligible. Regional Measure 3 funding for ferry operations is
<br />limited to $35 million annually. WETA's FY 19/20 operating budget was $50.7 million.
<br />Smith
<br />E-9
<br />Itle
<br />Service Assumptions
<br />., London
<br />AM Trips (Peak Dir./Rev.
<br />3/3
<br />4/4
<br />7/7
<br />PM Trips (Peak Dir./Rev.)
<br />3/3
<br />4/4
<br />7/7
<br />Capital Costs
<br />Vessels2
<br />$40,000,000
<br />$40,000,000
<br />$80,000,000
<br />Terminal
<br />estimates range from $15 million to $20 million3
<br />Operating Metrics (2019/20 Dollars)
<br />Expenses
<br />Year 1 (2025)
<br />$6,100,000
<br />$6,700,000
<br />$12,800,000
<br />Year 10 (2034)
<br />$8,200,000
<br />$9,000,000
<br />$17,200,000
<br />Revenues
<br />Year 1 (2025)
<br />$3,200,000
<br />$4,500,000
<br />$7,700,000
<br />Year 10 (2034)
<br />$5,800,000
<br />$7,300,000
<br />$13,100,000
<br />Subsidy Gap
<br />Year 1 (2025)
<br />$2,900,000
<br />$2,200,000
<br />$5,100,000
<br />Year 10 (2034)
<br />$2,400,000
<br />$1,700,000
<br />$4,100,000
<br />Farebox Recovery Ratio
<br />Year 1 (2025)
<br />52%
<br />67%
<br />60%
<br />Year 10 (2034)
<br />71%
<br />81%
<br />76%
<br />Sources: CDM Smith; WETA; Economic & Planning Systems
<br />1 "Combined" service assumes both routes start operation at the same time. If both services are pursued, it may be that
<br />start dates are staggered.
<br />z Assume two vessels and a shared spare for each route, resulting in five new vessels for both routes. Estimate ferry costs
<br />at $16 million each, depending on size and technology.
<br />3Costs for terminal are in FY 2019$
<br />Potential Operation Funding Sources — Unlike Contra Costa County which subsidizes ferry service from
<br />Richmond, San Mateo County does not have an existing, local funding source to subsidize ferry
<br />service. Measure A Ferry Program funding is only allowed for capital related costs; there is no local
<br />funding source currently identified for ferry service operations. However, the City may require new
<br />office development to participate in a transportation demand management association, levy an
<br />assessment or special property tax, or use transportation impact program fees to help finance ferry or
<br />connecting shuttle service. Regional Measure 3, although currently tied up in court, has programmed
<br />funds for new or expanded ferry service. These funds are not programmed for any specific service and
<br />routes must be operational ready to be eligible. Regional Measure 3 funding for ferry operations is
<br />limited to $35 million annually. WETA's FY 19/20 operating budget was $50.7 million.
<br />Smith
<br />E-9
<br />
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