Published: August, 2002
The City of Alameda is less than pleased that the only serious contract ferry operator on the bay now wants a cost plus contract to run the ferry service. Having just stuffed nearly $250,000 more into the operating contract and reducing morning service to save costs, Alameda is beginning to wonder just how much more it will take. Since the funding needs to be in place in advance, a cost plus contract could mean diminished ferry service on the Alameda–Oakland run towards the end of each year, if the costs exceed what is anticipated.
The current operator, Blue & Gold Fleet, is now on the hook for excess costs and apparently has not been able to increase ridership enough to offset the increased costs, despite a drop in fuel prices. The city is looking to see if the other potential operators it spurned at its last contract offering would again be interested in bidding. Both Hornblower and another group submitted lower bids than Blue & Gold, and each time the city bowed to pressure from the Inland Boatman’s Union and others to select the higher cost operator.
Now the city is faced with just one operator on the bay and that operator is no longer willing to be contractually bound to a fixed price service. Blue & Gold apparently now wants a cost plus fixed fee contract. The city is offering its standard contract along with the opportunity to merge the service with Harbor Bay to add more critical mass. Just how docking would be achieved at Fisherman’s Wharf is unclear, although any new operator would have to negotiate with Red & White Fleet or Blue & Gold.
The city is also offering the cost plus fixed fee option that is tailored to the current operator’s desires. But the real question is, given the city’s less than even-handed treatment at the last contract offering, will any entities bother to bid for this other than Blue & Gold?
