The San Francisco Bay Area Water Transit Authority (WTA) expects the number of Bay Area ferry riders to triple over the next fifteen years. The WTA’s plan calls for adding seven new ferry routes and expanding the six already successful ferry routes at a total cost of $646 million, including capital and operating costs through 2025.

While the proposed ferry system may be a much needed and cost-effective investment in regional transportation, there is a cost involved. Like any new business, the WTA has to look for venture capital funding to launch its ferry idea. Only in this case, the venture capitalists happen to be government entities, the usual source of funding for buses, roads, BART, trains, and ferries.

Funding Sources

The WTA identified several sources of funding for its recommended system, including a portion of the proposed dollar toll increase on all state-owned bridges, increasing federal support, development fees, and county sales tax dollars. No one source is expected to cover the entire cost. For instance, the proposed bridge toll increase is expected to provide funding for enhancements to the existing ferry service and two out of the seven new WTA-recommended ferry routes: South San Francisco, and Berkeley. This leaves a funding gap for the remaining six new routes.

County Sales Tax for Transit Must be Passed by 2/3 Vote

Several Bay Area counties will consider sales tax measures for transit on the 2003-2004 ballots, including San Francisco, Contra Costa, and San Mateo. A county’s authorization to use a portion of the sales tax for transit, usually a half cent, requires a 2/3-vote approval.

Reaching a 2/3 threshold on a vote is challenging for most of the counties. However, more than half of the voters have supported past sales tax measures. Based on this trend, two state legislators have sponsored bills to lower the vote threshold necessary for passage. Responding to the unlikelihood of the legislature being able to muster the 2/3 vote to reduce the threshold required at the ballot box, the Silicon Valley Manufacturer’s Group is poised to collect signatures to place this proposal on the ballot (see "I Lunch for a Living" in this issue).

Grassroots Organizing

Before getting a sales tax measure passed, counties must determine which transportation projects to fund out of it. Within San Mateo and Contra Costa counties, groups of grassroots supporters are organizing to promote ferries.

Water Transit Advocates for San Mateo County

San Mateo County anticipates ferries serving both South San Francisco and Redwood City. Led by co-chairs Mayor Pedro Gonzalez, South San Francisco, and Council Member Diane Howard, Redwood City, the Water Transit Advocates includes an impressive list of legislators, Port commissioners, labor representatives, and leaders of private industry. All told, San Mateo County will likely include more than $100 million to pay for ferry service to both locations in its sales tax measure.

Mayor Gonzalez said, "Ferry service is a natural fit for the City of South San Francisco. Literally dozens of biotech firms that are sited here need more commute choices for their employees-- ferries are a popular option that will alleviate traffic delays and stress that commuters experience while driving. Also, in emergency situations, ferries will be there and ready in case a natural or a man-made disaster occurs leaving our bridges unfunctional. The City of South San Francisco has a strong interest in supporting water service transportation to lure even more businesses here and to keep the ones we have." He added, "Ultimately, ferries may become a tourist attraction. It’s all part of building a healthy economy."

San Mateo is still compiling its list of transportation projects for the San Mateo County Transportation Authority to include in the sales tax measure. San Mateo businesses, such as Genentech, are fully supportive of supporting their new ferry service from sales tax dollars. In fact, Genentech’s State Government Relations Director, Todd Kaufman, said, "The biggest thing that excites us about the San Mateo sales tax is the Oyster Point ferry service."

Water Transit Advocates for Contra Costa County

Contra Costa County is rallying for new ferry service from Richmond, Hercules, Martinez, and Antioch. The Water Transit Advocates for Contra Costa County, a group trying to increase the network of ferry supporters and leverage money for ferries, is led by the who’s who of prominent county policy-makers. For instance, this group includes Richmond’s Mayor Irma Anderson, Contra Costa County Supervisor John Gioia, Hercules Mayor Ed Balico, Martinez Mayor Rob Schroder, and Antioch Mayor Don Freitas. Richmond and Hercules expect to include $57 million for ferries in the Contra Costa sales tax expenditure plan; Martinez expects to set aside approximately $8.5 million for ferries from the same source.

Supervisor Gioia, who participates in Contra Costa County’s smart growth efforts, said, "As Contra Costa grows, its residents want to preserve their quality of life by having transportation options that allow them to leave their cars at home but still easily reach other parts of the Bay Area. Ferry service will also encourage economic development along Richmond’s shoreline. With the technical support of the WTA, we expect to make water transit a success story for Contra Costa county."

San Francisco

San Francisco has included $5 million in its sales tax expenditure plan to go toward its $85 million project to upgrade Port facilities. San Francisco Chamber of Commerce Director Lee Blitch said, "Ferries are very popular with residents, employers, and visitors to the City. I expect that including the Port expansion project in the city’s sales tax measure will help to win votes for it. When you’re trying to reach a 2/3 approval, every little bit helps."