Deal outlined for extra ferries to and from SF

Tiburon is on its way to greenlighting a pilot program for late-night and weekend ferry service between the town and San Francisco.

The Town Council approved a draft term sheet last month establishing the basic framework for a private-public partnership with AC Ventures, a private real estate investment company that owns the Tiburon Ferry Landing, and Tideline Marine Group Inc., the ferry company that would provide the service.

Under the agreement, the town would provide a subsidy of up to $298,941 over two years to make up for 80% of expected losses as the ferry service kicks off. Up to $74,735, or the remaining 20% of losses, would be covered by businesses that AC Ventures said will benefit from the program.

The town’s subsidy would be covered by the American Rescue Plan Act, the $1.9 trillion economic stimulus bill. Tiburon was allocated $2.7 million through the legislation.

“I’ll be excited to see the ferries serving our residents and also the residents from San Francisco to come and enjoy our new establishments and old establishments in Tiburon,” said Mayor Holli Thier.

The tentative ferry schedule would be Thursday through Saturday and provide for at least three round trips per day, with one scheduled for 10 p.m. or later. Tideline vessels can carry up to 50 passengers at a daily operating expense of $4,600. Ticket prices are set to begin at $20 for one way and $35 for a round-trip ride.

“This subsidy is really going to create an opportunity for a robust ferry service between San Fran and Tiburon and really be the catalyst for Bay Area ferry transportation,” said SG Ellison, president of AC Ventures, during a special meeting on Oct. 28.

Tiburon has ferry service provided by the Golden Gate Bridge district, the Blue and Gold Fleet and the Angel Island Ferry. Blue and Gold has petitioned the California Public Utilities Commission to cease providing ferry service to Tiburon, which town staff acknowledged as a likely inevitability. None of the ferry services offers late-night service.

AC Ventures presented the proposal during the Town Council meeting on Oct. 20. The company said the ferry service would operate in conjunction with a planned revitalization of restaurants in Tiburon.

Stephanie Fermin, executive director for the nonprofit marketing organization Destination Tiburon, said transportation issues pose barriers to visitors patronizing hotels, restaurants and shops.

“Offering and increasing ferry service would help remedy this issue in a new and refreshing way,” she said in an email.

The Town Council suggested recommendations for

modifying of the draft term sheet. Vice Mayor Jon Welner said the subsidy structure did not provide a return to the town if the pilot service turned a profit.

“We’re taking away that entire trough from that enterprise,” Welner said.

The funding process was described as a monthly reconciliation, whereby monthly losses would be reported to the town and businesses, and the ferry service would be made whole by the subsidies. If in a specific month a profit was realized, the ferry service would not receive a subsidy. AC Ventures said it intended to set up a financial entity to receive the subsidies and transfer it to Tideline upon the monthly losses.

“There’s really just not going to be much of a profit if any at the end of this, so I don’t think it’s something we should fall on the sword for, for lack of a better term,” Ellison said during the meeting.

Town staff was directed to modify the agreement by exploring the possibility of clawbacks if the service made a profit in some months but received subsidies in others. The original draft provided for a limit of about $149,000 over the first 12-month period, but the council members also lifted that restriction under the presumption that there would be larger losses in the first year.

The Town Council approved the general terms of the agreement on Oct. 28.

“There’s still an awful lot of work to do,” Town Manager Greg Chanis said.

A final agreement would likely not be brought for approval until next year.