Members of the Board SAN FRANCISCO BAY AREA Jody Breckenridge, Chair WATER EMERGENCY TRANSPORATION AUTHORITY Jeffrey DelBono BOARD OF DIRECTORS MEETING Anthony J. Intintoli, Jr. Thursday, December 13, 2018 at 12:00 p.m. Nicholas Josefowitz Ron Cowan Central Bay Operations & Maintenance Facility James Wunderman, Vice Chair 670 W Hornet Avenue, 3rd Floor Alameda, CA
The full agenda packet is available for download at weta.sanfranciscobayferry.com
AGENDA
1. CALL TO ORDER – BOARD CHAIR
2. PLEDGE OF ALLEGIANCE/ROLL CALL
3. REPORT OF BOARD CHAIR Information
4. REPORTS OF DIRECTORS Information Directors are limited to providing information, asking clarifying questions about matters not on the agenda, responding to public comment, referring matters to committee or staff for information, or requesting a report to be made at another meeting.
5. REPORTS OF STAFF Information a. Executive Director’s Report on Agency Projects, Activities and Services b. Monthly Review of Financial Statements c. Legislative Update
6. CONSENT CALENDAR Action a. Board Meeting Minutes – November 8, 2018 b. Approve Contract Amendment 1 to Agreement with Fast Ferry Management, Inc. for Vessel Construction Management Services c. Approve Sole Source Contract Award to Pacific Power Group, LLC for Main Engine Overhauls
7. RECEIVE THE INDEPENDENT AUDITORS’ REPORTS FOR THE FISCAL Action YEAR ENDING JUNE 30, 2018
8. AUTHORIZE ACTIONS ASSOCIATED WITH THE SALE OF VESSELS Action
9. APPROVE PILOT PROGRAM TO ENHANCE HARBOR BAY AND SOUTH Action SAN FRANCISCO SERVICES
Water Emergency Transportation Authority December 13, 2018 Meeting of the Board of Directors
10. PUBLIC COMMENTS FOR NON-AGENDA ITEMS
ADJOURNMENT
All items appearing on the agenda are subject to action by the Board of Directors. Staff recommendations are subject to action and change by the Board of Directors.
PUBLIC COMMENTS WETA welcomes comments from the public. Each person wishing to address the Board of Directors is requested to complete a Speaker Card. Please forward completed Speaker Card and any reports/handouts to the Board Secretary. Speakers will be allotted no more than three (3) minutes to speak and will be heard in the order of sign-up. Said time frames may be extended only upon approval of the Board of Directors.
Non-Agenda Items: A 15 minute period of public comment for non-agenda items will be held at the end of the meeting. Please indicate on your speaker card that you wish to speak on a non-agenda item. No action can be taken on any matter raised during the public comment period.
Agenda Items: Speakers on individual agenda items will be called in order of sign-up after the discussion of each agenda item.
WETA meetings are wheelchair accessible. Upon request, WETA will provide written agenda materials in appropriate alternative formats to individuals with disabilities. In addition, WETA will arrange for disability-related modifications or accommodations including auxiliary aids or services to enable individuals with disabilities to participate in public meetings. Please send a written request including your name, mailing address, telephone number and brief description of the requested materials in preferred alternative format and/or auxiliary aid or service at least five (5) days before the meeting. Requests should be made by mail to: Board Secretary, WETA, 9 Pier, Suite 111, San Francisco, CA 94111; by e-mail to: [email protected]; or by telephone: (415) 291-3377.
M E M O R A N D U M
TO: WETA Board Members
FROM: Nina Rannells, Executive Director
DATE: December 13, 2018
RE: Executive Director’s Report
CAPITAL PROJECT IMPLEMENTATION UPDATE 4 New Vessels – Central Bay This project will construct four new 400-passenger high-speed 27-knot propeller vessels; two to replace the MV Encinal and MV Harbor Bay Express II and two to support the growing demand for WETA services.
The Board of Directors approved a contract with Aurora Marine Design (AMD) for vessel construction management services in December 2013, and with Kvichak Marine Industries - now Vigor Kvichak (Vigor) - in April 2015 for the construction of two new replacement vessels. Vessel construction began in September 2015. The first of these vessels, the MV Hydrus, was completed in March and put into revenue service in April 2017. The second of these vessels, the MV Cetus, was placed into revenue service in August 2017.
On October 6, 2016 the Board of Directors approved a contract award to Vigor for construction of two additional vessels. The first of these vessels, The MV Argo, was placed into revenue service in June 2018. Work continues on the fourth vessel, the MV Carina. December work includes vessel relaunch, dockside commissioning, USCG inspection and builders trials. Sea trials will be conducted on January 8-11. The MV Carina is scheduled for completion at the shipyard and transit to San Francisco in late January 2019.
3 New Vessels – North Bay This project will construct three new 445-passenger high-speed 34-knot jet propulsion vessels to support WETA’s Vallejo and North Bay services. In December 2015, the Board of Directors approved a contract with Fast Ferry Management for vessel construction management services. On September 1, 2016 the Board of Directors approved a contract award to Dakota Creek Industries for vessel construction. Vessel construction is in full swing.
The design and engineering work for the three new vessels is complete; all structural drawings have been approved. Main engine exhaust emissions testing was completed and Environmental Protection Agency (EPA) Tier 4 compliance for emissions was demonstrated at the factory. An agreement between WETA, MTU, Pacific Power Group and Dakota Creek for field testing of these first-ever MTU Tier 4 compliant engines has been finalized. MV Pyxis was launched on October 6. Systems testing and sea trials will begin in December. Delivery of MV Pyxis vessel to Vallejo is projected to occur in January 2019. Hull and superstructure construction on the second vessel MV Vela is at 90% complete. Waterjets have been installed on the MV Vela and the shipyard is starting the work to install mechanical and electrical systems. Hull framing for the third vessel, MV Lyra, is complete and her keel was laid. WETA Executive Director’s Report Page 2 December 13, 2018
MV Peralta Mid-Life Project – Phase Two This project provides for a general refurbishment of the MV Peralta. On December 7, 2017 the Board of Directors approved a contract award to Marine Group Boat Works. The Phase Two refurbishment includes: renovation of the passenger cabins, bathrooms and galley, exterior paint and coatings, navigation electronics, control systems upgrades, steering system replacement, stern hull section module. The stern hull sections have been replaced with new modules and are complete. The cabin interior passenger spaces have been cleared and repainted and the overhead ceiling has been replaced. The main deck bar was removed; new flooring and counters are installed. Control and navigation systems are replaced. Deck coverings and seating are installed. The project is complete and the MV Peralta returned to service in November.
New Commuter Class Vessel In December 2017, the Board of Directors approved a release of a Request For Proposals (RFP) to procure a mid-sized high-speed passenger vessel, with potential options, that will establish a new class of WETA vessel with the versatility to support WETA’s diverse system of services. On March 1, 2018, the Board of Directors approved a contract award to Glosten for Construction Management Services to support vessel construction. This mid-size high speed vessel will meet WETA’s needs for serving both long and short routes and facilities constrained by vessel size and water depth. On October 4, 2018, the Board of Directors approved award of a contract for the vessel to Mavrik Marine, Inc for this vessel. Design work has begun.
Central Bay Operations and Maintenance Facility This project constructed a new ferry operations and maintenance facility at Alameda Point to serve as the base for WETA’s existing and future Central Bay ferry fleet and operations. The project was led by Overaa/Power, a Joint Venture, and construction management was provided by 4Leaf, Inc. The project is largelycomplete. Blue & Gold has moved all WETA Central Bay vessel operations and administrative staff to the new facility. Facility and system modifications and final move-in details remain and will continue to be addressed as Blue & Gold settles into this new facility and operating environment. An opening ceremony will be held on December 13, 2018 at 1:30 at the the new facility.
Downtown San Francisco Ferry Terminal Expansion Project This project will expand berthing capacity at the Downtown San Francisco Ferry Terminal in order to support new and existing ferry services to San Francisco. The project also includes landside improvements needed to accommodate expected increases in ridership, and to support emergency response capabilities. Project construction is being provided by Power Engineering under a Guaranteed Maximum Price contract, and construction management is being provided by CH2M, now Jacobs Engineering.
Construction began in February 2017 and is scheduled to be fully completed by January 2020. In the interim, Gate G is scheduled to be completed later this month and Gate F is scheduled to be operational in early January. As Gates G & F are available, WETA will transfer operation of the Alameda/Oakland and Harbor Bay services from Gate E to the new gates allowing the contractor to proceed with reconstruction of Gate E and completion of the north side of project. WETA will notice passengers prior to the service transition and will provide on-site assistance to help passengers queue at the new gates.
Richmond Ferry Terminal and Service This project will construct a ferry terminal in Richmond to support new public transit ferry service between Richmond and San Francisco. Construction consists of replacing an existing facility WETA Executive Director’s Report Page 3 December 13, 2018
(float and gangway) and the expansion and upgrading of an existing surface parking lot. Manson Construction is the main contractor and construction management is being provided by Ghirardelli Associates. New service will be operated with the support of Contra Costa County Measure J funds authorized by the Contra Costa County Transportation Authority (CCTA) in March 2015.
Project dredging and pile removal was completed in October 2017 and waterside pile installation was completed in November 2017. Construction of the landside improvements commenced in February 2018 and will be completed by the end of the year. Staff has consulted with the City of Richmond and mutually agreed on a service opening date of January 10, 2019. Marketing for the new service is underway, with a ribbon cutting event scheduled for 1:30 p.m. on January 10, 2019 at the terminal. A marketing task force including various stakeholders has been meeting on a biweekly basis.
Terminal Dredging At the August Board meeting a contract was awarded to the Dutra Group for South San Francisco Ferry Terminal dredging at the Oyster Point Marina. The BCDC permit for this project was delayed beyond the anticipated start date, but work is now underway and expected to be complete by the end of the year.
At the September Board meeting a contract was awarded to the R.E. Staite for dredging and float and gangway rehabilitation work at the Vallejo Ferry Terminal. Dredging has been completed and related gangway and float work is expected to be completed in December.
SERVICE DEVELOPMENT UPDATE Mission Bay Ferry Landing The Port of San Francisco released an engineering feasibility and site selection study for a future Mission Bay ferry landing in March 2016. WETA staff participated in the study and provided input regarding ferry operations and potential service models. In December 2016, the Port of San Francisco awarded a contract to COWI/OLMM to complete preliminary design, permitting and entitlement activities, and began the process in partnership with WETA. To support the effort, the City and Port of San Francisco placed $7 million in its capital budget. A project Memorandum of Understanding (MOU) between the Port and WETA was adopted by the WETA Board in January 2017. Staff has been working together with Port staff and their consultants on initial design and environmental testing activities. The environmental document is complete. The Port is working to identify funds to move the project forward to construction and has submitted a request for WETA to program $25 million in Regional Measure 3 to support project construction, which is estimated to cost approximately $40 million.
Oakland Athetic’s Howard Terminal Stadium Proposal WETA staff has met with the Oakland Athletics organization and the Howard Terminal stadium development team. Discussions thus far have been high level and have not been detailed to the point of developing service plans or evaluating infrastructure needs. However, WETA staff will be an active participant in the project transportation discussions moving forward and will be submitting a letter during the scoping phase for the anticipated Environmental Impact Report.
Alameda Seaplane Lagoon Ferry Terminal In April 2016, the Alameda City Council and WETA Board of Directors adopted a MOU defining a future service concept for western Alameda and identifying the terms and conditions under which a new Seaplane Lagoon Ferry Service would be implemented. The MOU defines roles and responsibilities for each party pertaining to the proposed construction of a new ferry WETA Executive Director’s Report Page 4 December 13, 2018 terminal along Seaplane Lagoon on the former Naval Air Station at Alameda Point, future operation of the service, and the pursuit of funds necessary to support the new service. The City has contracted with Marcy Wong Donn Logan Architects to complete the final design of the ferry terminal. WETA staff is participating in the design effort. Staff continues to work with the City to fulfill WETA’s commitments under the MOU with the common goal of achieving the start of service by 2020.
The transfer of property from the City to the development team - Alameda Point Partners - included a $10 million contribution toward the Seaplane Lagoon Ferry Terminal. The City previously secured $8.2 million from the Alameda County Transportation Commission for the terminal and has recently committed $2 million from City general funds. In August 2018, the WETA Board of Directors authorized a commitment of $2 million to the project to close a funding gap and keep the project on schedule for an early 2020 opening. WETA staff is working to support City of Alameda efforts to move this project to construction and anticipates continuing in a consultative and support role during construction.
Redwood City Ferry Terminal WETA prepared a draft Redwood City ferry terminal site feasibility report in 2012 in an effort to identify site opportunities, constraints and design requirements, and better understand project feasibility and costs associated with the development of a terminal and service to Redwood City. During the summer of 2016, staff from the Port of Redwood City (Port), WETA and Redwood City met to redefine a ferry project that could potentially be developed in phases given existing funding limitations. The project concept shifted the development toward a public facility available to multiple ferry operators in advance of formal WETA service given the lack of project funds for such service at this time. This alternative development model would allow the Port and City to move forward with construction of a terminal, allowing time for WETA and the City to advocate for operational and vessel funding for eventual WETA service.
In an effort to jump-start a regional conversation on the Redwood Ferry service, Board Chair Breckenridge, Vice Chair Wunderman and WETA staff participated in a site visit to the Port on May 25, 2018 that also included Port Commissioners, the Mayor of Redwood City, and Councilmembers from Redwood City and Burlingame. In addition, staff from multiple agencies and private sector stakeholders such as Google and Prop SF was in attendance. The two-hour site event consisted of a visit to an adjacent property to view a potential ferry terminal location and an hour of presentations and discussion among the group.
Redwood City is now leading an effort to prepare a Financial Feasibility Study and Cost Benefit Analysis Report for the Redwood City Ferry Terminal Construction and Service utilizing $450,000 in San Mateo County Measure A transportation sales tax funds. As a part of this study, they will be entering into an agreement with the San Mateo County Transportation Authority to develop and adopt the Feasibility Study and Business Plan. The feasibility will be completed in approximately 12 months. Concurrent with this activity, Redwood City, Port of Redwood City and WETA staff are working to develop a draft MOU for future Board consideration that defines agency roles and responsibilities for working together to advance the terminal planning and development.
Berkeley Ferry Terminal The proposed Berkeley service will provide an alternative transportation link between Berkeley and downtown San Francisco. In past years, staff worked to develop a draft environmental assessment for a project to build a new ferry terminal and service in Berkeley at a site just south of the Berkeley Fishing Pier. This work was ultimately suspended due to extraordinary WETA Executive Director’s Report Page 5 December 13, 2018
mitigation measures required by National Marine Fisheries related to project dredging and due to the lack of full funding for project construction and operation; a prerequisite to Federal Transit Administration (FTA) completion of the federal environmental process (NEPA).
City of Berkeley staff recently initiated a study to explore strategies for rebuilding the city’s Municipal Fishing Pier, including a concept for a dual-use pier facility that would serve as both a ferry terminal and public access space. This study seeks to address issues related to not only the City’s loss of public access to waterfront, but also conflicts that have emerged with the operation of private ferry service within the Berkeley Marina. The study was not originally scoped to consider WETA as the primary ferry service operator; however, both City and WETA staff have expressed a mutual interest in expanding the study to do so. Staff is currently working with their respective counsels to draft an MOU that would define a partnership between the parties for expanding the City’s ferry study and pursuing further development of the project, should a feasible concept be identified. Execution of the MOU would require approval by both the WETA Board and the Berkeley City Council.
Treasure Island Service This project - which will be implemented by the Treasure Island Development Authority (TIDA), the San Francisco County Transportation Authority (SFCTA), acting in its capacity as the Treasure Island Mobility Management Authority, and Lennar Urban, the prospective developer - will institute new ferry service between Treasure Island and downtown San Francisco in connection with the planned Treasure Island Development Project.
WETA staff has worked with City of San Francisco staff over the years to support development of this project. We currently participate in regular meetings of the City’s Technical Advisory Committee, convened to update and further develop the Treasure Island Mobility Management Program that will include a new ferry service to be provided in conjunction with the development project. Staff has reached out to SFCTA to schedule a meeting to discuss their plans to advance the opening date for new ferry service from 2023 to 2021.
SYSTEM PLANS/STUDIES Alameda Terminals Access Initiatives The City of Alameda City Council authorized a residential parking permit program for the Harbor Bay Ferry Terminal area in February 2017. City of Alameda staff coordinated with the Harbor Bay Master Homeowner’s Association to develop a strategy for implementing the residential permit and enforcement program, including outreach to surrounding communities and ferry riders. On June 27, the City began the outreach effort with cooperation from WETA through the Bay Alerts system. The City continued its outreach process through the end of August and began active enforcement in September 2017. To make up for the loss of parking, WETA began working with the City to develop strategies to enhance alternative access to the terminal, and staff executed an agreement with AC Transit to offer a reciprocal free transfer to ferry riders who take the bus to the ferry. In addition, bike lockers were upgraded and new bike racks were installed.
Recently, the City submitted an application to allow on-street parking on Harbor Bay Parkway and Adelphian Way, two streets where BCDC has imposed no parking or limited parking rules. A group of Harbor Bay riders have submitted letters of support for the City proposal and WETA staff has also written to support the proposed change as a benefit to ferry riders.
At the request of the Harbor Bay Homeowner’s Association and the City of Alameda, WETA has been working with the City in considering a parking fee at the Harbor Bay lot. WETA staff has WETA Executive Director’s Report Page 6 December 13, 2018
engaged CDM Smith to evaluate potential parking fee programs, not just for Harbor Bay but for the entire WETA system. A program of systemwide parking fee program policy goals was approved by the WETA Board in November 2016 that can be used to guide the development of a specific paid parking program for the Harbor Bay Terminal site. Staff has recently asked City of Alameda staff to confirm that there is still interest in paid parking at Harbor Bay and how this would be integrated into the City’s overall plans for parking at the other two terminals in Alameda once Seaplane Lagoon is operational in 2020.
At Main Street, WETA worked with City of Alameda staff beginning in spring 2015 to open the Officer’s Club parking lot as an overflow lot for the many riders who had been parking on dirt lots or on the shoulders of Main Street. WETA funded a new crosswalk and minor improvements to the lot, which opened to ferry riders in May 2016. In addition to the parking improvements, 20 bicycle lockers were installed at the Main Street terminal in February 2016. Staff has since shifted focus to identify additional access improvement possibilities - such as buses, shuttles, bicycles, and pedestrian improvements - after the parking improvements were underway, and has met with private companies like Lyft, Chariot and Scoop in an effort to explore alternative options for improving transportation options for ferry riders in Alameda and elsewhere.
WETA recently submitted a letter of support for a City of Alameda proposal to restripe Main Street to allow for Class 2 bike lanes, narrowing vehicular lanes from four to three. The proposal is intended to improve bicycle access and overall safety for ferry commuters accessing the terminal.
Solano County Water Transit Plan and Financial Feasibility Study The Solano Transportation Authority (STA) has begun a feasibility study of potential ferry and water transit routes in and around Solano County. WETA is a partner on the study by serving on a Technical Advisory Committee and funding the necessary ridership forecasting tasks, similar to the role WETA played in the 2014 Ferry Feasibility Study in Contra Costa County. The STA study is expected to be complete by the end of 2019. Staff will provide the Board with updates as the study progresses.
Small Vessel Service Study An Advisory Committee of the Board has been formed and has met on four occasions to initiate study of small vessels as a complement to WETA’s service. The Board Subcommittee consists of Board members Josefowitz and Intintoli, and a transportation consultant, ARUP, has been engaged to perform the analysis. Staff has also convened and met with a Technical Advisory Committee (TAC) to solicit input on the project and held meetings with individual stakeholders.Staff anticipates having a draft report for discussion with the full Board of Directors in January 2019.
EMERGENCY RESPONSE ACTIVITIES UPDATE WETA’s enabling legislation directs the agency to provide comprehensive water transportation and emergency coordination services for the Bay Area region. The following emergency response related activities are currently underway:
x Staff is continuing to work on ordering emergency communications equipment for the Central Bay Operations & Maintenance Facility, and is developing a functional layout for converting the conference room into an EOC during an event requiring EOC activation. WETA Executive Director’s Report Page 7 December 13, 2018
x On December 5, the CBOMF hosted K9 training on board moored ferry vessels. Participating agencies included U.S.C.G., BART PD, Alameda PD, Oakland PD and WETA’s contract operator Blue & Gold Fleet.
x On December 6, the CBOMF hosted Chemical, Biological, Radiological, Nuclear, and Explosives (CBRNE) and Active Shooter training dockside aboard a WETA ferry. Participating agencies included U.S.C.G., U.S. Department of Homeland Security, FBI, Lawrence Livermore Lab and WETA’s contract operator Blue & Gold Fleet.
OTHER PROJECTS Ridership Database WETA has contracted with TransSight LLC to build a web-based Ridership Database and Reporting System to improve access to and use of ridership and other operating data from Blue & Gold Fleet’s data systems. The database has been deployed for staff access.
Mobile Ticketing Platform WETA has developed a mobile ticketing platform that will allow riders to use their mobile devices to buy tickets for the ferry. Visitors and other infrequent riders who do not have Clipper Cards will be the primary users of the mobile ticketing platform. On August 2, the WETA Board approved award of a contract for the mobile ticketing platform to Hopthru, Inc. The Hopthru mobile ticketing platform was launched on October 29, 2018.
OPERATIONS REPORT Monthly Operating Statistics - The Monthly Operating Statistics Report for October 2018 is provided as Attachment A.
KEY BUSINESS MEETINGS AND EXTERNAL OUTREACH On November 13, Kevin Connolly attended the Alameda Shuttle Task Force.
On November 13, Nina Rannells attended the Bay Area Partnership Legislative Committee Meeting at MTC.
On November 14, Keith Stahnke made a presentation to the San Mateo County Harbor District Board of Commissioners.
On November 14, Kevin Connolly made a presentation to the East Bay Leadership Council Transportation Committee.
On November 14, Nina Rannells attended the Solano Transportation Authority Awards Dinner with Director Intintoli.
On November 15, Kevin Connolly attended a “Transportation Salon” hosted by the Oakland Athletics to discuss transportation issues surrounding the proposed new stadium at Howard Terminal.
On November 16, Thomas Hall met with Visit Richmond to discuss the Richmond ferry service launch.
On November 29, Taylor Rutsch attended the Oakland Athletics community announcement for the proposed Howard Terminal Stadium site. WETA Executive Director’s Report Page 8 December 13, 2018
On November 30, Kevin Connolly and Mike Gougherty provided a site tour of the Main Street ferry terminal and Central Bay Operations and Maintenance facility for the Deputy City Manager, City Attorney, and senior staff from the City of Berkeley
On December 6, Kevin Connolly attended a task force formed by MTC to study transit ridership trends.
OTHER BUSINESS Regional Measure 3 Senate Bill 595 (Beall), authorized a new bridge toll measure - Regional Measure 3 (RM3) - to raise the tolls on the state-owned bridges to fund a program of regional transportation improvements in the San Francisco Bay Area. In June 2017, during the development of this bill, the WETA Board adopted a Regional Measure 3 Principles and Investment Program. The final measure adopted by the legislature included $300 million in capital funds to support construction of WETA vessels, terminals and facilities and an operating subsidy of up to $35 million annually to support WETA’s growing regional ferry system.
On January 24, 2018, the Bay Area Toll Authority authorized moving forward to place RM3 on the June 5, 2018 ballot. The measure, which passed by a majority of Bay Area voters, will raise tolls by $3 over a six year period starting with a $1 increase on January 1, 2019, and followed by additional $1 increases in January 2022 and January 2025. This measure has been challenged by two lawsuits that are currently pending in the Superior Court in the City and County of San Francisco.
On November 29, 2018, the Bay Area Toll Authority (BATA) held a public hearing to receive comments on a proposal to begin collecting new bridge tolls authorized by SB 595 and Regional Measure 3 on January 1, 2019, and to place these tolls into an escrow account until the lawsuits are settled. Under the proposal, if BATA prevails in the litigation the funds would be applied to the RM3 program of projects and if BATA loses the litigation the funds would be reimbursed to tollpayers. BATA is scheduled to take final action on this proposal at their regularly scheduled meeting on December 19, 2018. Under this plan, no RM3 funds would be available to project sponsors, including WETA, for capital or operating programs until the lawsuits are settled.
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$YJ:HHNGD\5LGHUVKLS2FWREHU 3DVVHQJHUV3HU+RXU 5HYHQXH+RXUV 5HYHQXH0LOHV KƉƐ^ƚĂƚƐ )DUHER[5HFRYHU\ &RVWSHU$YDLODEOH6HDW0LOH $YHUDJHSHDNKRXUXWLOL]DWLRQ$0 $YHUDJHSHDNKRXUXWLOL]DWLRQ30 )XHO8VHG JDOORQV )XHO $YJ&RVWSHUJDOORQ AGENDA ITEM 5b MEETING: December 13, 2018
MEMORANDUM
TO: Board Members
FROM: Nina Rannells, Executive Director Lynne Yu, Finance & Administration Manager
SUBJECT: Monthly Review of FY 2018/19 Financial Statements for Four Months Ending October 31, 2018
Recommendation There is no recommendation associated with this informational item.
Summary This report provides the attached FY 2018/19 Financial Statements for four months ending October 31, 2018.
Operating Budget vs. Actual Prior Actual Current Budget Current Actual Revenues - Year To Date: Fare Revenues $7,681,305 $7,546,533 $8,430,058 Bridge Toll Revenues 5,097,122 7,049,433 5,325,744 Other Revenues 600 242,667 5,400 Total Operating Revenues $12,779,027 $14,838,633 $13,761,202 Expenses - Year To Date: Planning & Administration $497,834 $1,000,000 $631,069 Ferry Services 12,281,194 13,838,633 13,130,133 Total Operatings Expenses $12,779,027 $14,838,633 $13,761,202 System-Wide Farebox Recovery % 63% 55% 64%
Capital Actual and % of Total Budget % of FY 2018/19 YTD Actual Budget Revenues: Federal Funds $5,429,190 State Funds 25,262,217 Bridge Toll Revenues 6,265,830 Other Revenues 230,769 Total Capital Revenues $37,188,006 31.86% Expenses: Total Capital Expenses $37,188,006 31.86%
Fiscal Impact There is no fiscal impact associated with this informational item.
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This Page Left Intentionally Blank San Francisco Bay Area Water Emergency Transportation Authority FY 2018/19 Statement of Revenues and Expenses For Four Months Ending 10/31/2018 % of Year Elapsed 33% Year - To - Date Total % of Oct-18 FY2017/18 FY2018/19 FY2018/19 FY2018/19 Total Actual Actual Budget Actual Budget Budget OPERATING EXPENSES PLANNING & GENERAL ADMIN: Wages and Fringe Benefits $91,280 $316,042 $517,267 $385,730 1,551,800 24.9% Services 59,654 268,747 455,800 291,483 1,367,400 21.3% Materials and Supplies 233 8,413 60,167 1,012 180,500 0.6% Utilities 4,167 9,955 13,700 12,818 41,100 31.2% Insurance - 1,201 9,433 1,200 28,300 4.2% Miscellaneous 13,334 9,383 104,267 44,291 312,800 14.2% Leases and Rentals 31,430 122,236 129,567 125,170 388,700 32.2% Admin Overhead Expense Transfer (59,547) (238,143) (290,200) (230,635) (870,600) 26.5% Sub-Total Planning & Gen Admin $140,550 $497,834 $1,000,000 $631,069 3,000,000 21.0% FERRY OPERATIONS: Harbor Bay FerryService Purchased Transportation $237,427 $600,745 $760,000 $784,644 2,280,000 34.4% Fuel - Diesel & Urea 50,266 122,499 202,500 173,383 607,500 28.5% Other Direct Operating Expenses 46,203 118,739 250,800 180,562 752,400 24.0% Admin Overhead Expense Transfer 7,376 30,135 33,600 28,457 100,800 28.2% Sub-Total Harbor Bay $341,272 $872,117 $1,246,900 $1,167,046 3,740,700 31.2% Farebox Recovery 48% 59% 45% 51% 45% Alameda/Oakland Ferry Service Purchased Transportation $948,220 $3,164,946 $3,111,800 $3,208,416 9,335,400 34.4% Fuel - Diesel & Urea 187,742 515,853 671,300 666,468 2,013,900 33.1% Other Direct Operating Expenses 154,061 381,039 846,400 649,127 2,539,200 25.6% Admin Overhead Expense Transfer 26,171 103,207 127,833 102,573 383,500 26.7% Sub-Total Alameda/Oakland $1,316,195 $4,165,045 $4,757,333 $4,626,583 14,272,000 32.4% Farebox Recovery 57% 65% 56% 68% 56% Vallejo FerryService Purchased Transportation $991,096 $3,906,078 $3,978,700 $3,715,437 11,936,100 31.1% Fuel - Diesel & Urea 465,643 1,460,449 1,916,000 1,913,658 5,748,000 33.3% Other Direct Operating Expenses 122,215 756,110 661,800 499,222 1,985,400 25.1% Admin Overhead Expense Transfer 21,995 88,663 104,833 85,582 314,500 27.2% Sub-Total Vallejo $1,600,948 $6,211,301 $6,661,333 $6,213,898 19,984,000 31.1% Farebox Recovery 65% 66% 58% 70% 58% South San Francisco FerryService Purchased Transportation $203,731 $752,525 $800,000 $814,214 2,400,000 33.9% Fuel - Diesel & Urea 37,122 121,886 192,400 132,251 577,200 22.9% Other Direct Operating Expenses 50,405 142,181 166,167 162,118 498,500 32.5% Admin Overhead Expense Transfer 4,005 16,138 14,500 14,023 43,500 32.2% Sub-Total South San Francisco $295,263 $1,032,730 $1,173,067 $1,122,606 3,519,200 31.9% Farebox Recovery 41% 34% 36% 33% 36% Total Operating Expenses $3,694,228 $12,779,027 $14,838,633 $13,761,202 $44,515,900 30.9% OPERATING REVENUES Fare Revenue $2,082,782 $7,681,305 $7,546,533 $8,430,058 22,639,600 37.2% Regional - Bridge Toll 1,611,445 5,097,122 7,049,433 5,325,744 21,148,300 25.2% Regional - Alameda Tax & Assessment - - 242,667 - 728,000 0% Other Revenue 600 - 5,400 - 0% Total Operating Revenues $3,694,228 $12,779,027 $14,838,633 $13,761,202 $44,515,900 30.9%
Page 1 San Francisco Bay Area Water Emergency Transportation Authority FY 2018/19 Statement of Revenues and Expenses For Four Months Ending 10/31/2018
Total Total % of Total Oct-18 Project Total Project Total Prior FY2018/19 FY2018/19 Total Future Budget Project Description Total Budget Expense Budget Expense Year Spent CAPITAL EXPENSES: FACILITIES: Terminal Construction Downtown Ferry Terminal Expansion - South Basin $5,178,423 $97,965,000 $46,780,727 $34,556,273 $15,201,701 $16,628,000 63% Richmond Ferry Terminal 1,598,608 21,000,000 11,134,262 9,865,738 5,583,751 - 80%
Maintenance and Operations Facilities Ron Cowan Central Bay Operations & Maintenance Facility 56,392 69,500,000 60,723,722 8,776,278 2,190,007 - 91%
Terminal Improvement Terminal Dredging - Vallejo and South San Francisco 10,359 5,100,000 106,999 4,993,001 109,828 - 4%
FERRY VESSELS: Vessel Construction 445-Pax Replacement Vessel - M/V Vallejo 1,239,792 23,372,000 12,443,000 10,929,000 5,557,867 - 77% 445-Pax Expansion (Waterjet) Vessels - 2 vessels 588,083 46,745,000 15,557,743 20,187,257 4,134,549 11,000,000 42% 400-Pax Expansion (Propeller) Vessels - 2 vessels 18,885 33,400,000 26,533,692 6,866,308 3,108,923 - 89% 1 New Commuter Class High-Speed Vessel 14,961 15,300,000 93,374 9,106,626 135,668 6,100,000 1%
Vessel Rehabilitation and Refurbishment Vessel Mid-Life Refurbishment - M/V Peralta 34,213 5,117,000 2,929,906 2,187,094 1,146,818 - 80% Vessel Engine Overhaul - M/V Intintoli and M/V Mare Island - 3,000,000 - 1,500,000 600.00 1,500,000 0% Vessel Qtr-Life Refurburbishment - M/V Scorpio 7,020 2,500,000 - 2,500,000 7,020 - 0% Vessel Engine Overhaul - M/V Taurus - 800,000 - 800,000 - - 0% Vessel Service Life Extension - M/V Solano 11,275 13,000,000 - 3,375,000 11,275 9,625,000 0%
CAPITAL EQUIPMENT / OTHER: CCTV Install and Network Intergration - East Bay Terminals - 400,000 - 400,000 - - 0% Purchase Service Vehicles - 500,000 27,088 472,912 - - 5% Purchase Selective Catalyst Reduction (SCR) System - 200,000 - 200,000 - - 0%
Total Capital Expenses $8,758,012 $337,899,000 $176,330,514 $116,715,486 $37,188,006 $44,853,000 CAPITAL REVENUES: Federal Funds $1,031,742 $79,920,140 $33,033,731 $37,986,409 $5,429,190 $8,900,000 48% State Funds 8,124,443 201,533,450 112,665,044 61,852,046 25,262,217 27,016,360 68% Regional - Bridge Toll (406,419) 53,222,010 29,605,664 14,899,706 6,265,830 8,716,640 67% Regional - Alameda Sales Tax Measure B / BB 8,246 1,723,400 586,075 1,137,325 230,769 - 47% Regional - Alameda TIF / LLAD 400,000 - 400,000 - - 0% Regional - San Francisco Sales Tax Prop K 1,100,000 440,000 440,000 - 220,000 40%
Total Capital Revenues $8,758,012 $337,899,000 $176,330,514 $116,715,486 $37,188,006 $44,853,000 1 On 10/4/2018, Board approved Total Project Budget increase of $1.3 million, from $14.0 million to $15.3 million.
Page 2 1120 G Street, NW LINDSAY HART, LLP Suite 1020 FBB Federal Relations Washington, DC 20005
Tel: (202) 783-3333 Peter Friedmann Fax: (202) 783-4422 Ray Bucheger
TO: WETA Board Members
FROM: Peter Friedmann, WETA Federal Legislative Representative Ray Bucheger, WETA Federal Legislative Representative
SUBJECT: WETA Federal Legislative Board Report – December 2018
This report covers the following topics: 1. What the Election Results Mean for WETA in 2019 2. Incoming House T&I Committee Chairman to Provide Stronger Oversight Over FTA 3. Keeping WETA’s Priorities Front and Center
What the Election Results Mean for WETA in 2019 The 2018 election didn’t necessarily change the political dynamic in the Senate (more on that below), but it made Democrats the majority party in the House in 2019. This means that many of WETA’s key supporters will have more political clout in the new year. This includes Congresswoman Nancy Pelosi, who will likely be the Speaker of the House, and Reps DeSaulnier, Garamendi and Huffman, who are members of the House Transportation and Infrastructure (T&I) Committee and will have more ability to advocate for WETA priorities, including additional funding for the Federal Highway Administration (FHWA) ferry formula program and the Federal Transit Administration (FTA) ferry grant program. Higher funding levels would mean additional funding WETA capital projects. Increasing the level of funding for either program requires Congress to pass legislation.
The incoming Chairman of the House T&I Committee, which will write any infrastructure legislation that moves through the House and is solely responsible for reauthorizing the FAST Act in the House (the FAST Act provides DOT with the authority to distribute money through the FHWA and FTA ferry programs) is Congressman Peter DeFazio (D-OR). Congressman DeFazio supports funding for transit and is aware of our push to increase funding for the FHWA and FTA ferry programs. In fact, we arranged for WETA Board Chair Jody Breckenridge to meet with Congressman DeFazio in his office over the summer to advocate for additional funding for federal ferry programs.
Republicans remain the majority party in the Senate, which means that little will change in that chamber. The California Senators will continue to be strong advocates for WETA. This is important, because while neither Senator sits on a committee with jurisdiction over FHWA or FTA, the fact that Republicans maintain a narrow majority in that chamber (even after the election) means that any legislation that Republican leaders want to take up and pass will have to be bipartisan in nature. That is not to mention the fact that any individual Senator has the power to slow down or block any legislation that leadership tries to move on the Senate floor if that Senator believes the legislation will hurt their constituents or wants to use this leverage to gain additional benefits for their constituents.
Incoming House T&I Committee Chairman to Provide Stronger Oversight Over FTA Public ferry systems have long been concerned with the process that FTA uses to distribute ferry grants – we have written about this many times in our reports to the Board. Not only is the process slow, the agency often combines funding for multiple years, forcing ferry systems to guess about how much money will be available through the grant program during any given
Page 1 of 2
funding round. This issue is not unique to the ferry program – members of Congress have been generally expressing frustration over the FTA’s processes for months. With that in mind, and as part of his oversight role, one of the first things that incoming House T&I Committee Chairman Peter DeFazio plans to do in 2019 is invite DOT officials to testify about their slow- walking of transit grants. This is an issue we have discussed with DeFazio’s committee staff.
Keeping WETA’s Priorities Front and Center We are continuing to work with WETA staff to look for various opportunities to engage certain key members of Congress outside of Washington, D.C. This includes possibly getting Washington Senator Patty Murray and / or Washington Congressman Rick Larsen to a Washington shipyard for a photo-op; inviting Rep Barbara Lee to the opening of the Central Bay Operations & Maintenance Facility; inviting Rep Nancy Pelosi to the ribbon cutting of the Downtown Ferry Building project; and inviting Rep Mark DeSaulnier to the opening of the Richmond ferry building.
Respectfully Submitted,
Peter Friedmann and Ray Bucheger
AGENDA ITEM 6a MEETING: December 13, 2018
SAN FRANCISCO BAY AREA WATER EMERGENCY TRANSPORTATION AUTHORITY MINUTES OF THE BOARD OF DIRECTORS MEETING
(November 8, 2018)
The Board of Directors of the San Francisco Bay Area Water Emergency Transportation Authority met in regular session at Pier 1, Port of San Francisco.
1. CALL TO ORDER – BOARD CHAIR Chair Jody Breckenridge called the meeting to order at 1:31 p.m.
2. ROLL CALL Chair Breckenridge, Vice Chair James Wunderman, and Director Anthony Intintoli were in attendance.
3. REPORT OF BOARD CHAIR Chair Breckenridge said that she had recently taken a walk along the Richmond waterfront and reported that the terminal construction progress was looking excellent. She also noted that she had just attended the State of California Governor’s Military Council meeting where she had spoken with senior policy officers from various state entities. Chair Breckenridge said the conversations had provided her with some good feedback and potential opportunities for WETA.
4. REPORTS OF DIRECTORS Vice Chair Wunderman said that he and Executive Director Nina Rannells had traveled to the United Kingdom to learn more about hovercraft technology currently in use there. He said the ride on the craft had been on a calm day, and was quieter, smoother and faster than he had anticipated.
5. REPORTS OF STAFF Ms. Rannells shared her written report with Directors. She said that WETA’s new online ferry ticket service, provided and administered by Hopthru, went live on October 29 and riders were already utilizing it to purchase their tickets using their mobile phones. Ms. Rannells said that the WETA Board meeting that had been planned for December 6 had been moved to December 13 to be combined with an open house event at WETA’s new Ron Cowan Central Bay Operations and Maintenance Facility in Alameda. She reminded Directors that an event to launch the new Richmond ferry service on January 10, 2019 was also scheduled to take place after the WETA January Board meeting that will be held in Richmond that morning.
Directors discussed the potential impact of the lawsuits challenging Regional Measure 3 (RM3) and acknowledged that this could mean that no new RM3 capital or operating funds would be available to WETA for some time.
6. CONSENT CALENDAR Director Intintoli made a motion to approve the consent calendar which included:
a. Board Meeting Minutes – October 4, 2018 b. Resolution Authorizing the Filing of Applications with the Federal Transit Administration
Vice Chair Wunderman seconded the motion and the consent calendar carried unanimously. Water Emergency Transportation Authority December 13, 2018 Minutes for November 8, 2018 Page 2
Yeas: Breckenridge, Intintoli, Wunderman. Nays: None. Absent: DelBono, Josefowitz.
7. APPROVE BOARD OF DIRECTORS MEETING SCHEDULE FOR CALENDAR YEAR 2019 Ms. Rannells presented this item to approve the Board of Directors meeting schedule for 2019.
Chair Breckenridge noted that Director Josefowitz had inquired about moving the regular Board meeting location to the offices of the Metropolitan Transportation Commission (MTC) where the meeting could be recorded in multiple ways and broadcast to help assure public accessibility beyond written minutes. She said that staff had looked into this request and found that moving the meeting to the MTC offices would require that Directors set the meeting schedule around the MTC meeting room schedule for the year which would result in unpredictable meeting dates and times.
It was agreed that the meetings would continue to take place at the Port of San Francisco offices as a home base for now and that additional recording and broadcast options for the meetings would be explored. It was also agreed that staff would work with Board members to solicit input for holding meetings at other locations in the region during the year and bring a revised calendar forward at a future meeting.
Vice Chair Wunderman made a motion to approve the item.
Director Intintoli seconded the motion and the item passed unanimously.
Yeas: Breckenridge, Intintoli, Wunderman. Nays: None. Absent: DelBono, Josefowitz.
8. OVERVIEW OF WETA SYSTEM PERFORMANCE MEASURES Planning & Development Manager Kevin Connolly presented this overview of WETA system performance measures. He shared a slideshow with Directors that detailed the various methods currently and metrics used to collect data and track WETA system performance. Directors discussed some general objectives and considerations for future data collection and reporting.
Mr. Connolly explained that there currently were no unique “weekend” performance measures in use and noted that there will be, since the weekend ridership demographic was different than that of the weekday commute ridership and being able to look at the two groups individually could be informative. Mr. Connolly said that staff would continue to refine and develop its targets, guidelines and data collection to incorporate into the monthly Board reports shared with Directors each month.
9. DOWNTOWN SAN FRANCSICO FERRY TERMINAL EXPANSION PROJECT UPDATE Senior Planner/Project Manager Michael Gougherty presented this item on the Downtown San Francisco Ferry Terminal Expansion Project. He said that the contractor was nearing completion of Gates F and G, and they were scheduled to open prior the launch of WETA’s new Richmond ferry service in January 2019. Mr. Gougherty explained that WETA will shift operations for its services on the Alameda/Oakland and the Harbor Bay routes to these new gates to allow the contractor to rebuild Gate E and finish construction of the new plaza being built just north of the Agriculture Building. Mr. Gougherty noted that about 75 percent of all pile driving for the project is complete. He said the project construction was on track to be complete in January 2020.
10. VESSEL PROPULSION TECHNOLOGY UPDATE Operations & Maintenance Manager Keith Stahnke introduced two speakers, Chief Technology Officer and Chief Executive Officer of Golden Gate Zero Emission Marine Dr. Joseph Pratt, and Aurora Marine Design President Shaun Green, who provided updates on pioneering green technology for vessels and discussed how the technologies might benefit WETA as they evolve in the near future. Water Emergency Transportation Authority December 13, 2018 Minutes for November 8, 2018 Page 3
Dr. Pratt provided Directors with an introduction to hydrogen fuel cell technology. In a slideshow presentation, he shared an overview of the vessel Water-Go-Round and discussed the demonstration services planned for the zero emission vessel on San Francisco Bay. He said Sandia Laboratories will be independently collecting information on the vessel technology and use by crews. Dr. Pratt emphasized that the two primary greener technology options currently available – hydrogen fuel cell and battery propulsion – each had benefits and costs that could vary with applications such as short or long routes, fast or slow speeds, and heavy or light loads or number of passengers being carried. He said the two options had different refueling/recharging requirements which also should be considered when exploring the technology. Dr. Pratt said that because hydrogen is such a light gas, it dissipates very quickly into the atmosphere and removes itself from the ecosystem right away and because of this, it is considerably safer than diesel fuel for the environment. Dr. Pratt added that much larger tanks are required to store hydrogen than to store diesel onboard vessels and he said the fueling can be done directly from tanks on trucks.
Mr. Green gave a slideshow presentation on the evolution of vessel propulsion technology emphasizing electric battery technology. He explained that route choice would absolutely be key in the success of utilizing this technology for WETA vessels. Mr. Green emphasized that any plans for a new green technology vessel would need to future-proof the choice made to assure that the technology will still make sense in ten or 20 years over the life of the vessel. He explained that the objective for a WETA electric vessel would be to identify a route where the vessel is spending most of its time maneuvering and idling at low speeds, with a maximum high speed of 25 knots utilized to complete the route. He noted that the best choice for this of the current WETA routes was the Central Bay route between Oakland, Alameda and San Francisco, and he added that the future planned service route between San Francisco and Treasure Island could also be ideal because of that route’s short distance. It was noted that hybrid diesel-electric would require adding considerable weight to a vessel with the current state of the technology because of the size and weight of the battery banks.
It was also noted that both new technology options were evolving quickly and being tested and employed with more urgency and frequency. Dr. Pratt noted that 200 electric charging stations were expected to be installed throughout Northern California before 2025 under a governor mandate. Mr. Green said he recommended that WETA soon consider putting batteries on a vessel, despite the potential loss of some efficiency, so the agency can begin to prepare for the future. He said these technologies will continue to flow down the pipeline and the pace of their evolutions will continue to accelerate. Dr. Pratt agreed, and said he believed the future is in plant based fuel and no carbon emissions with two of the biggest challenges being storage of energy on vessels and that energy’s origin or generation.
Executive Director Nina Rannells expressed staff’s interest in further exploring these alternative propulsion technologies. She noted that staff has discussed ways that WETA might partner with Golden Gate Zero Emission Marine to allow demonstration of the Water-Go-Round on its Alameda-Oakland service route. She further stated that, with Board support, staff would continue work to investigate opportunities to build and demonstrate the viability of a WETA high speed battery electric ferry vessel.
11. PUBLIC COMMENTS FOR NON-AGENDA ITEMS No public comments were shared.
All business having been concluded, the meeting was adjourned at 3:36 p.m.
- Board Secretary
***END*** AGENDA ITEM 6b MEETING: December 13, 2018
MEMORANDUM
TO: Board Members
FROM: Nina Rannells, Executive Director Keith Stahnke, Operations & Maintenance Manager
SUBJECT: Approve Contract Amendment 1 to Agreement with Fast Ferry Management, Inc. for Vessel Construction Management Services
Recommendation Approve Amendment 1 to Agreement #15-013 with Fast Ferry Management, Inc. for vessel construction management services to extend the contract term to December 31, 2021, and authorize the Executive Director to execute the amendment.
Background/Discussion In December 2015, the Board authorized award of a contract to Fast Ferry Management, Inc. (FFM) for $1,890,000 to provide project development and construction management services for the construction of three new North Bay vessels. This award, which was the result of a Request for Qualifications process, was made prior to development and award of a contract for vessel construction. When executed, the term of the contract was set to expire on June 30, 2019; the projected end date of vessel construction at the time. Contract Amendment 1 would extend the contract term to December 31, 2021, to cover construction management services through the end of vessel construction and closeout of the vessel warranty period.
Staff recommends approval of Amendment 1 to Agreement #15-013 with FFM to extend the contract term, which would include establishing annual billing rates for the extended term of this time and materials contract. The construction management services budget for this contract is sufficient to support the anticipated work through the warranty period. FFM has demonstrated excellence in every aspect of its work providing construction management services for the North Bay vessel construction projects.
Fiscal Impact There is no fiscal impact associated with this proposed amendment.
***END***
SAN FRANCISCO BAY AREA WATER EMERGENCY TRANSPORTATION AUTHORITY
RESOLUTION NO. 2018-34
APPROVE CONTRACT AMENDMENT 1 TO AGREEMENT WITH FAST FERRY MANAGEMENT, INC. FOR VESSEL CONSTRUCTION MANAGEMENT SERVICES
WHEREAS, in December 2015, WETA entered into Agreement #15-013 with Fast Ferry Management Inc. (FFM) for $1,890,000 to provide construction management services for the for the construction of three North Bay passenger vessels; and
WHEREAS, WETA staff has recommended amending the Agreement with FFM to extend the contract term to December 31, 2021; now, therefore, be it
RESOLVED, that the Board of Directors hereby approves Amendment 1 to Agreement #15-013 with FFM to extend the contract term to December 31, 2021; and be it further
RESOLVED, that the Board of Directors authorizes the Executive Director to negotiate and execute the amendment and take any other related actions to support this work.
CERTIFICATION
The undersigned, Board Secretary, does hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the San Francisco Bay Area Water Emergency Transportation Authority held on December 13, 2018.
YEA: NAY: ABSTAIN: ABSENT:
______/s/ Board Secretary 2018-34 ***END*** AGENDA ITEM 6c MEETING: December 13, 2018
MEMORANDUM
TO: Board Members
FROM: Nina Rannells, Executive Director Keith Stahnke, Operations & Maintenance Manager
SUBJECT: Approve Sole Source Contract Award to Pacific Power Group, LLC for Main Engine Overhauls
Recommendation Approve the award of a Sole Source Contract to Pacific Power Group, LLC (PPG) in the amount of $2,500,000 for the purchase of main propulsion engine overhaul maintenance services for the MV Intintoli, Mare Island, and Taurus, and authorize the Executive Director to negotiate and execute an agreement and take any other required actions to support this work.
Background/Discussion The four MTU 16V4000M73 EPA Tier 2 main engines on the MV Intintoli and Mare Island have been in service since original installation in 2012 and are approaching their time-between- overhaul (TBO) threshold of 21,000 hours. In order to remain in compliance with the preventative maintenance schedule for these engines, they must be removed from the vessels and undergo a complete mechanical overhaul by an authorized MTU service dealer.
These engines will be removed one at a time and our swing MTU 16V4000 M73 engine will be used to minimize the down time for each vessel during this maintenance period. The main engines for the MV Intintoli will be cycled out in January and March of 2019, while the main engines for the MV Mare Island will be cycled out in June and August of 2019. In each instance the vessel will be out of service for approximately one week to complete the engine swaps.
The two MTU 16V2000M70 main engines on the MV Taurus have been in service since their previous completed overhaul in 2015, and are approaching their time-between-overhaul (TBO) threshold of 7,000 hours. In order to remain in compliance with the preventative maintenance schedule for these engines, they must be removed from the vessels and undergo a complete mechanical overhaul by an authorized MTU service dealer.
These engines will be removed one at a time and our swing MTU 16V2000 M70 engine will be installed as the first engine on the MV Taurus is removed. This strategy will minimize the amount of time that the vessel remains out of service. The work is expected to have the MV Taurus out of service for the month of April 2019.
Scope of Work This project will purchase the main propulsion engine overhaul services of an authorized MTU service dealer to provide parts, labor, materials, testing, and commissioning of main propulsion engines for the WETA vessels noted above.
Sole Source Discussion There is sole source justification to award the procurement of these engine overhaul services to PPG as they are uniquely qualified to provide complete technical, engineering, logistics and service support. PPG is currently a factory-assigned dealership for WETA as determined by MTU for the provision of MTU engines, parts, and services. Water Emergency Transportation Authority December 13, 2018 Award a Sole Source Contract to PPG for Main Engine Overhauls Page 2
PPG is well qualified to carry out this project as it has the requisite technical application experience with these engine models in terms of inspections, service, repairs, and complete engine overhauls and it has a large workforce of seasoned and experienced mechanics qualified on MTU 16V 4000 and 2000 series engines. Further, PPG has the unique ability to complete engine overhauls in 6 weeks for Series 4000 engines and in as little as 2 weeks for a Series 2000 engine in support of WETA operational needs. PPG has an onsite dynamometer capable of testing these marine engines following complete tear down and overhaul.
PPG has provided main propulsion engine purchase and service support for WETA on several vessel procurement and repower projects in the past, including new construction of Hydrus Class and Pyxis Class vessels. PPG performs ongoing service and repair to WETA’s vessels and is also the factory-assigned rep to provide sales, service and repair for Golden Gate Ferry vessels here in the San Francisco Bay Area.
Staff has analyzed PPG’s price proposal and finds it to be fair and reasonable as the price is in alignment with historical engine overhaul services on these families of engines. WETA’s independent cost estimate for the base work totals $2,600,000 while the total base work pricing offered by PPG is $2,141,060.
The recommended contract authorization amount of $2,500,000 includes a base award for engine overhaul work, transportation, testing, sea trials, and 17 percent contingency. WETA will pay California state use tax directly from the project budgets.
In accordance with the above analysis, staff has determined that this procurement meets the requirements for sole source procurement under federal regulations and as set forth in the WETA Administrative Code Section 502.2(E), which authorizes the agency to procure goods and services without competition under limited circumstances. Subdivision (E) of this provision allows the agency to procure items non-competitively when there is only a single source of supply available or only one contractor is qualified to provide the service or product. Because PPG is uniquely able to provide and warranty the necessary work, a competitive bidding process would serve no useful purpose for this procurement.
Fiscal Impact The Vessel Engine Overhaul – MV Intintoli and MV Mare Island and Vessel Engine Overhaul – MV Taurus projects are included in the FY 2018/19 Capital Budget in the amount of $3,000,000 and $800,000 respectively. The projects are presently funded with 80% Federal (FTA) funds, 16% Regional Measure 1 capital funds, and 4% AB664 Net Bridge Toll Revenue. Sufficient funds are available in the total budget for these projects of $3,800,000 to support the award of this contract.
***END*** SAN FRANCISCO BAY AREA WATER EMERGENCY TRANSPORTATION AUTHORITY
RESOLUTION NO. 2018-35
APPROVE SOLE SOURCE CONTRACT AWARD TO PACIFIC POWER GROUP, LLC FOR MAIN ENGINE OVERHAULS
WHEREAS, the San Francisco Bay Area Water Emergency Transportation Authority (Authority) has identified the need for the overhaul of main propulsion engines on the ferry vessels Intintoli, Mare Island and Taurus in order to remain in compliance with the preventative maintenance schedule for these engines; and,
WHEREAS, the Authority has determined that Pacific Power Group, LLP is the MTU factory- assigned dealership for the sales, parts, and service of MTU Series 4000 and 2000 engines in the Bay Area region; and,
WHEREAS, the Authority has determined that this procurement meets the requirements for sole source procurement under WETA and federal regulations and as set forth in the WETA’s Administrative Code Section 502.2(E); and
WHEREAS, the Authority has identified Pacific Power Group, LLP as being both responsive and responsible in the provision of services; now, therefore, be it
RESOLVED, that the Board of Directors hereby approves entering into an agreement with Pacific Power Group, LLP in an amount up to $2,500,000 which includes a 17% project contingency and authorizes the Executive Director to execute the agreement and take any other required actions to support this work.
CERTIFICATION
The undersigned, Board Secretary, does hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the San Francisco Bay Area Water Emergency Transportation Authority held on December 13, 2018.
YEA: NAY: ABSTAIN: ABSENT:
/s/ Board Secretary 2018-35 ***END***
AGENDA ITEM 7 MEETING: December 13, 2018
MEMORANDUM
TO: Board Members
FROM: Nina Rannells, Executive Director Lynne Yu, Finance & Administration Manager
SUBJECT: Receive the Independent Auditors’ Reports for the Fiscal Year Ending June 30, 2018
Recommendation Receive the Independent Auditors’ Annual Financial Reports for the fiscal year ending June 30, 2018, as submitted by Maze & Associates, including the following:
a. Memorandum on Internal Control; b. Required Communications; b. Basic Financial Statements; c. Single Audit Report; d. Measure B Fund Financial Statements; and e. Measure BB Fund Financial Statements.
Background Section 106.6 of the WETA Administrative Code requires the preparation of annual audit reports by an independent auditor consistent with California Government Code Section 66540.54. WETA has contracted with Maze & Associates (Maze), through a competitive procurement process, to perform this independent audit work.
Discussion The Independent Auditors’ Reports for the fiscal year ending June 30, 2018, issued by Maze and provided for Board acceptance, are comprised of the following:
Memorandum on Internal Control and Required Communications The Memorandum on Internal Control and Required Communications, provided as Attachment A and Attachment B, respectively, communicates such topics as the auditor’s responsibilities under generally accepted auditing standards, overview of the planned scope of the audit and significant findings from the audit. In accordance with Statement of Auditing Standards No. 114 (The Auditor’s Communication with Those Charged with Governance), the independent auditors are required to communicate significant findings and issues related to an audit. Maze did not identify any deficiencies in internal controls that were considered to be material weaknesses during the audit.
Basic Financial Statements The Basic Financial Statements are provided as Attachment C to this report. These statements include an Independent Auditor’s Report, Management Discussion and Analysis Basic Financial Statements and Required Supplementary Information for the year ending June 30, 2018. The Independent Auditor’s Report provides the opinion that WETA’s basic financial statements present fairly in all material respects the respective financial position of the business-type activities of the agency as of June 30, 2018, and the respective changes in financial position and cash flows for the year then ended, in conformity with generally accepted accounting principles in the United States of America.
Water Emergency Transportation Authority December 13, 2018 Receive the Independent Auditors’ Reports for FY2017/18 Page 2
Single Audit Report The Single Audit Report, provided as Attachment D, is a required examination of an entity that expends $750,000 or more of federal awards in a single year. This report includes a schedule of expenditures of federal awards and a report on internal controls and compliance related to the federal expenditures. Maze has audited the compliance of WETA with respect to the types of compliance requirements described in OMB Compliance Supplement that are applicable to each of the major federal programs providing funding. It is Maze’s opinion that WETA complied, in all material respects, with the types of compliance requirements applicable to the federal program for the year ended June 30, 2018.
Measure B and Measure BB Fund Financial Statements The Measure B (MB) and Measure BB (MBB) Fund Financial Statements, provided as Attachment E and Attachment F, respectively, are required of WETA in relation to the receipt of Alameda County MB and MBB funds in FY 2017/18. These reports include the financial statements for WETA’s MB and MBB funds and compliance opinion of the funds received and used. Maze has audited the compliance of WETA with respect to requirements related to these funds as specified in the Master Programs Funding Agreements between WETA and the Alameda County Transportation Commission. It is Maze’s opinion that WETA is in compliance with the laws and regulations, contracts, and grant requirements related to MB and MBB funds for the year ended June 30, 2018.
A representative of Maze & Associates will be in attendance at the meeting to present the financial audit reports.
Fiscal Impact There is no fiscal impact associated with this report.
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Basic Financial Statements; Single Audit Report; Measure B Funds Financial Statements; and, Measure BB Funds Financial Statements; WHEREAS, these reports were presented to the WETA Board of Directors by a representative of Maze at the December 13, 2018 Board of Director’s meeting; now, therefore, be it RESOLVED, that WETA Board of Directors (Board) hereby takes action to receive the Independent Auditors’ Reports as submitted by Maze & Associates, including the following: (a) Memorandum on Internal Control; (b) Required Communications; (c) Basic Financial Statements; (d) Single Audit Report; (e) Measure B Fund Financial Statements; and (f) Measure BB Fund Financial Statements. CERTIFICATION The undersigned, Board Secretary, does hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the San Francisco Bay Area Water Emergency Transportation Authority held on December 13, 2018. YEA: NAY: ABSTAIN: ABSENT: /s/ Board Secretary 2018-36 ***END*** AGENDA ITEM 8 MEETING: December 13, 2018 MEMORANDUM TO: Board Members FROM: Nina Rannells, Executive Director Keith Stahnke, Operations & Maintenance Manager Lynne Yu, Finance & Administration Manager SUBJECT: Authorize Actions Associated with the Sale of Vessels Recommendation Approve the following actions related to the sale of the MV Encinal and MV Vallejo which have reached the end of their service lives and are ready for disposal: x Authorize the sale of the MV Encinal and MV Vallejo; and x Authorize the Executive Director to secure the services of a marine broker, through a competitive RFP process and contract award, to facilitate the sale of these vessels for fair market value; and x Authorize the Executive Director to take any other related actions as may be necessary to finalize the sale of these assets. Background/Discussion The MV Encinal (1985) and MV Vallejo (1994) are both over twenty-five (25) years old and have reached the end of their economic and operational useful lives. Since inheriting these vessels from the City of Alameda and City of Vallejo, respectively, WETA has worked to secure funds to replace these vessels with new state-of-the art vessels designed to meet WETA’s growing operating requirements and California Air Resources Board (CARB) strict emissions regulations for Harbor Craft. Per CARB regulations, both the MV Encinal and MV Vallejo, which utilize Tier 0 engines, must be removed from active passenger service by December 31, 2018. The MV Encinal has now been replaced with the MV Cetus, one of the new Hydrus Class vessels, and the MV Vallejo will soon be replaced with the MV Pyxis, which is scheduled for completion in early 2019. With these replacement vessels completed and placed into service, staff will need to focus attention on disposing of these vessels in a manner consistent with any and all funding requirements and in compliance with CARB emissions regulations. Given the small and specialized market for high speed passenger catamarans, staff recommends that WETA utilize the services of a marine broker to facilitate the sale of these vessels at market rate. To select the most qualified broker, staff will utilize a competitive Request for Proposal process. Staff proposes to select a marine broker and place both vessels up for sale as soon as possible. Fiscal Impact Under Federal Transit Administration (FTA) rules, FTA is entitled to a share of the proceeds from the disposal of FTA-funded vehicles/vessels under certain conditions. Staff will work with the selected marine broker to determine the fair market value of the vessels and will work with the Federal Transit Administration (FTA) and other funding partners to determine how WETA can apply the proceeds from the vessel sales towards future WETA system assets. ***END*** SAN FRANCISCO BAY AREA WATER EMERGENCY TRANSPORTATION AUTHORITY RESOLUTION NO. 2018-37 APPROVE ACTIONS ASSOCIATED WITH THE SALE OF VESSELS WHEREAS, the MV ENCINAL and MV VALLEJO are both over twenty-five (25) years old and have reached the end of their economic and operational useful life; and WHEREAS, WETA staff has recommended selling these vessels; and WHEREAS, WETA staff proposes the use of marine brokerage services to obtain the best price for the sale of the MV Encinal and MV Vallejo; now, therefore, be it RESOLVED, that the Board of Directors hereby authorizes the sale of the MV Encinal and MV Vallejo; and be it further RESOLVED, that the Board of Directors authorizes the Executive Director to secure the services of a marine broker, through a competitive RFP process and contract award, to facilitate the sale of these vessels for fair market value; and be it further RESOLVED, that the Board of Directors authorizes the Executive Director to take any other related actions as may be necessary to finalize the sale of these assets. CERTIFICATION The undersigned, Board Secretary, does hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the San Francisco Bay Area Water Emergency Transportation Authority held on December 13, 2018. YEA: NAY: ABSTAIN: ABSENT: ______/s/ Board Secretary 2018-37 ***END*** AGENDA ITEM 9 MEETING: December 13, 2018 MEMORANDUM TO: Board Members FROM: Nina Rannells, Executive Director Kevin Connolly, Planning & Development Manager SUBJECT: Approve Pilot Program to Enhance Harbor Bay and South San Francisco Services Recommendation Approve a two-part pilot program to enhance Harbor Bay and South San Francisco ferry service utilizing existing vessels and crews. The proposed new pilot program includes: 1) Addition of a 9 a.m. weekday departure from Harbor Bay to San Francisco; and 2) Creation of a new reverse-commute service from South San Francisco to Harbor Bay by offering a single morning and single evening departure to test the market for expanded ferry service into Harbor Bay. This service would utilize the existing fare structure for the Alameda/Oakland -South San Francisco service during the pilot period. The pilot program would operate for 12 months beginning in January 2019. Background WETA ferry services are close to operating at the upper limit of our vessel fleet and operating subsidy capacity. This is unfortunate given the fact that WETA is experiencing record ridership and there is ample justification for increased service frequency in impacted markets such as Vallejo, Oakland/Alameda and Harbor Bay. With new RM3 operating and capital revenues now on hold due to pending lawsuits, our only opportunity to expand services in the near-term is through securing new operating funds or identifying opportunities to refine and optimize schedules to operate more revenue trips utilizing existing vessels and crews. Discussion In reviewing scheduling changes associated with the launch of new Richmond service in January 2019, staff has identified an opportunity to make two service changes by making use of non-revenue (“deadhead”) trips and repositioning existing vessels and crews. Staff recommends that the Board of Directors approve a pilot program to move forward to implement these service changes for a one-year test period. If approved, staff would provide the Board with periodic reports about the pilot service operation and utilization. The two service changes proposed are described below. New 9:00 a.m. Trip from Harbor Bay to San Francisco Commute ridership from Harbor Bay to San Francisco has grown 10 percent over the last two years and 47 percent since 2013. The Harbor Bay Terminal is constrained due to limited depth so Hydrus-class 400 passenger vessels are too large to serve the terminal. Instead, Harbor Bay has been served by the 250-passenger MV Bay Breeze over the past year, resulting in peak AM trip occupancies of 89 and 93 percent for the month of October 2018. Water Emergency Transportation Authority December 13, 2018 Approve Pilot Program to Enhance Harbor Bay and SSF Services Page 2 The 8:30 a.m. trip has been the fastest-growing departure in Harbor Bay service. It was averaging 71 percent occupancy in April 2018 and has steadily increased to 93 percent in October. This follows a trend throughout the system where late-peak departures – between 8:30 and 9:30 a.m. – are experiencing strong growth. The proposed pilot program would introduce a 9 a.m. Harbor Bay departure to San Francisco. This new trip would be operated utilizing a South San Francisco crew on a Gemini-class vessel. This trip should accomplish two service goals: first, it can alleviate pressure on the 8:30 a.m. trip, which often experiences leave-behinds. Second, a 9:00 a.m. trip should attract new riders by offering a convenient trip for parents of elementary school-aged kids. As we have heard from riders previously advocating for a later morning trip, local schools have an 8:20 a.m. bell time, which does not provide sufficient time for many working parents to make it to the ferry for the 8:30 a.m. trip. Adding a 9:00 a.m. trip would provide an opportunity for more working parents and late morning commuters to utilize the Harbor Bay ferry service. With a larger vessel now in Harbor Bay service (the 331-passenger MV Peralta) and three evening departures between 4:35 p.m. and 6:00 p.m., an increase in morning riders should not overload the evening schedule. However, staff will monitor the impact of the new morning trip and provide the Board with updates on the progress of the 9 a.m. trip as part of the pilot program. New Reverse-Commute Service From SSF to Harbor Bay By making use of non-revenue trips and repositioning vessels, staff has developed a limited schedule reverse-commute service between South San Francisco and Harbor Bay. This service would be aimed at commuters who work in one of the businesses in the Harbor Bay Business Park or nearby employment centers such as the Oakland Airport but live in South San Francisco or the northern peninsula. The pilot program would offer a morning trip from South San Francisco to Harbor Bay at 8:30 a.m. A return trip back to South San Francisco would be at 6:30 p.m. Additional trips are not possible at this time due to a lack of available vessels. However, the pilot program can determine the level of demand for travel between these points. Staff proposes that this new South San Francisco-Alameda Harbor Bay service use the existing fare structure for the Alameda/Oakland -South San Francisco service during the pilot period. Utilizing the existing South San Francisco fare will make the plan simple and easily implementable across WETA’s fare media (Clipper, Hop-thru, paper tickets). Fiscal Impact Staff estimates that the pilot program would add an additional $30,000 in expense which may well be offset with additional fare revenue collected on the new trips. ***END*** SAN FRANCISCO BAY AREA WATER EMERGENCY TRANSPORTATION AUTHORITY RESOLUTION NO. 2018-38 APPROVE PILOT PROGRAM TO ENHANCE HARBOR BAY AND SOUTH SAN FRANCISCO SERVICES WHEREAS, vessel shortages and a lack of additional operating funds prevents WETA from enhancing service across the system; and, WHEREAS, staff has identified specific areas in the network to make use of existing vessels and crews to offer strategic enhancements at limited additional expense; and, WHEREAS, one such opportunity exists to add a 9 AM trip to San Francisco from Harbor Bay and also offer a limited reverse commute service between South San Francisco and Harbor Bay; and, WHEREAS, both pilot services will be offered for a 12-month period starting in January 2019; and, WHEREAS, a new service from South San Francisco to Harbor Bay can be offered using the same fare structure as the existing Alameda/Oakland – South San Francisco (South San Francisco) service; now, therefore, be it RESOLVED, that the Board of Directors hereby approves a one-year, two-part pilot program to enhance Harbor Bay and South San Francisco ferry service including: 1) Addition of a 9a.m. weekday departure from Harbor Bay to San Francisco; and 2) Creation of a new reverse commute service from South San Francisco to Harbor Bay which would utilize the existing South San Francisco service fare. CERTIFICATION The undersigned, Board Secretary, does hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the San Francisco Bay Area Water Emergency Transportation Authority held on December 13, 2018. YEA: NAY: ABSTAIN: ABSENT: /s/ Board Secretary 2018-38 ***END***