GOLDEN GATE FERRY PURCHASES TWO HIGH-SPEED FERRIES FROM WASHINGTON STATE

chinook

Chinook

 

snohomish

Snohomish

The Golden Gate Bridge, Highway and Transportation District (District) Board of Directors (Board) approved the following actions at their regularly meeting on November 21, 2008, at 10 am: 1) Authorize purchase of two existing high-speed passenger vessels from Washington State Ferries (WSF) at a price of $ 4 million ($2 million per vessel); 2) Establish a budget of $19.1 million for the refurbishment of the WSF two vessels, and, 3) Establish a contingency budget of $ 310,000 for sales/use tax that may be payable to the State of California.

UPDATED PROJECTED TIMELINE (updated February 5, 2009)

January 16, 2009: Complete purchase of the two Washington State Ferries
   
April 2009:
First ferry arrives from Washington, the Snohomish: To provide customers continuity with high speed service during the re-powering of the M.V. Del Norte, Golden Gate Ferry (GGF) would place the not-yet-refurbished Snohomish into service as a substitute for the M.V. Del Norte. The Snohomish is certified to carry 350 passengers and GGF plans to work to obtain USCG recertification to 390 passengers as this is what the M.V. Del Norte currently can carry.
   
Mid-2009: Complete drawings and specifications for refurbishment of WSF vessels
   
September 2009: Award contract for refurbishment
   
Mid to Late 2009: First WSF (Chinook) begins refurbishment process
   
Early 2010: First fully-refurbished WSF (Chinook) vessel delivered to the District
   
Spring 2010: Snohomish begins refurbishment process
   
Late 2010: Snohomish refurbished and delivered to the District
   

BACKGROUND

2007:
Board authorized the issuance of a Request for Proposals for procurement of a new high-speed passenger vessel with Tier 2-20 main engines to maximize emissions reduction.
 
July 2008:
One proposal was received from Nichols Brothers Boat Builders (Nichols Bros.) of Freeland, WA with a bid price of $18.6 million.
   
September 12, 2008:
After the District became aware of WSF desire to sell two high-speed ferry vessels that have been out of use for several years, the Board authorized staff to submit an offer of $2 million per vessel, subject to a number of conditions, including Board approval of the final purchase. The two vessels, MV Snohomish and MV Chinook, are eight feet longer than Golden Gate Ferry’s MV Del Norte and are of similar design. They were built shortly after the Del Norte and were operated for approximately three years and have been inactive since September 2003.
   

Since receiving confirmation from WSF that the conditional offer of $2 million per vessel was accepted, District staff and consultants have:

  • Inspected the vessels to confirm that the hulls are in excellent condition and have not experienced any unusual wastage of the hull plating or other major structural components.
  • Reviewed regulations to ensure the passenger capacity of each vessel can be increased to carry a minimum of 450 passengers and determined that there is sufficient space to install the necessary seating and other improvements necessary for our service.
  • Prepared a detailed estimate that identifies each improvement necessary to prepare the vessels for service.

COST COMPARSION

   
Purchase New High-Speed Vessel
 
Contract price, including bond/financing/insurance
$17,601,724
Contingency for change orders (3%)
509,000
Project Management (PM)
275,000
Miscellaneous District and staff costs
225,000
 
$18,610,724
   
Two Refurbished High-Speed Vessels
Purchase price, two vessels
$4,000,000
Potential Tax (Use/Sales)
310,000
Refurbishment Costs (includes 3% contingency and PM)
19,100,000
 
$23,410,000
Potential Carl Moyer Program Funding Offset
$3,500,000
Total for 2
$19,910,000
   

VESSEL REFURBISHMENT INCLUDES

  • As required by the California Air Resources Board (CARB), both vessels will be re-powered with Tier 2 engines. Consistent with Board policy, the engines will be Tier 2-20 engines, which exceed current CARB requirements.
  • Other machinery to be replaced includes reduction gears; main shafting; bearings; engine controls and monitoring panels; electrical generator sets; and other miscellaneous pumps and controllers.
  • The four water jets will be completely refurbished to like-new condition.
  • Certain above-hull structures will be modified to accommodate additional inside seating capacity and new embarkation doors for passenger access at the upper deck.
  • Each vessel will be outfitted with new accessible restrooms; snack bar; new seating and tables; bicycle racks; new deck covering (carpet and tile).
  • The pilot house will be outfitted with new updated navigation equipment.
  • The vessel will be completely repainted.
  • Make necessary provisions to increase passenger from 350 to a minimum of 450 (this will require USCG certification).

 

ADVANTAGE OF TWO HIGH-SPEED VESSELS

  1. Meets the current needs of the District and positions the organization to be able to respond to any number of potential scenarios involving increased demand.
  2. Allows the District to fully examine the potential impacts of selling two of its three Spauldings as opposed to keeping them as valuable assets to the San Francisco Bay region during a time of emergency need. Staff will review this issue and present a recommendation to the Board later in 2009.

 

FISCAL IMPACT

This project is included in the FY 07/08 Ferry Division Capital Budget in the amount of $12,000,000 and is funded with $9,600,000 Federal Transit Administration (FTA) funds, $2,116,322 State (I Bond) funds, and $283,678 District funds (80% FTA/17.6% State/2.4% District).

A capital budget increase in the amount of $11,510,000 ($6,400,000 FTA funds and $5,110,000 from District reserves) is required to fully fund this project at the proposed budget of $23,510,000. Utilizing FTA funds to support the purchase of these two vessels and additional FTA funds to support the refurbishment of these two vessels was made possible by staff’s creative development of an efficient and effective funding proposal, and the FTA’s willingness to collaborate and achieve the best possible solution for the District.

The estimated total cost to implement this project is as follows:

Previous Expenditures
$100,000
Purchase two vessels
4,000,000
Sales/Use Tax Due State of California
310,000
Refurbishment costs for one vessel:
Design
200,000
Construction
8,700,000
Consultants (including project management)
150,000
Staff Labor
150,000
ICAP (75%)
100,000
Testing, Inspection, Trials, Delivery
200,000
Miscellaneous
50,000
SUBTOTAL
$9,550,000
Refurbishment Cost for Two Vessels  
19,100,000
TOTAL BUDGET FOR TWO VESSELS  
$23,510,000

The total project will be funded as follows: $16,000,000 FTA funds (68%), $2,116,322 State (I-Bond) funds (9%), and $5,393,678 District funds (23%).

Please note that certain aspects of the vessel refurbishment may also be subject to California sales tax. If this occurs, the extra expense will be addressed as a budget adjustment when awarding the refurbishment contract.