The Administration recommends that the Mayor and City Commission (“City Commission”) approve the Resolution.

A water taxi is a watercraft that provides public transport service, often in an urban environment. The service may be fixed schedule/fixed route with multiple stops, operating similarly to a bus, or on-demand to many locations, operating similarly to a taxi. Aside from being an attraction to tourists who enjoy the scenic cross-bay route, water taxi service can also provide a convenient and reliable alternative mobility option to commuters traveling daily to and from Downtown Miami and Miami Beach.

On November 29, 2020, Poseidon Ferry LLC (“Poseidon”) launched a cross-bay passenger water taxi/ferry service providing connectivity to and from the Hyatt Regency located at 400 SE 2 Avenue in Downtown Miami and the Bentley Bay Marina located at 520 West Avenue in Miami Beach, where the water taxi connected to the County’s MetroMover system and the South Beach Trolley service, respectively. The water taxi service was privately owned and operated by Poseidon with no public subsidy from Miami-Dade County, the City of Miami, or the City of Miami Beach (“City”) and utilized a double-deck vessel with an air-conditioned lower deck. Service commencement was shared with the City Commission via LTC No. 422-2020 (Attachment A). Poseidon suspended the service route on December 31, 2022 due to low ridership and concerns with the long-term feasibility of the service given the lack of a public subsidy. It is worth noting that many water taxi/ferry services currently in operation around the world rely on public subsidies for service longevity, similar to most public transit systems around the world.

On June 28, 2023, the City Commission adopted Resolution No. 2023-32644 (Attachment B), waiving, by 5/7th vote, the formal competitive bidding requirement in Section 2-367(e) of the City Code, finding such waiver to be in the best interest of the City, and accepting the recommendation of the Finance and Economic Resiliency Committee, at its May 24, 2023 meeting, directing the City Administration to (1) negotiate a one (1) year agreement beginning in fiscal year (“FY”) 2024 with Poseidon Ferry, LLC to provide a cross-bay passenger water taxi/ferry service pilot program ("Pilot Program") between Miami Beach and Downtown Miami; (2) identify funding for a potential operating subsidy; (3) identify locations where operation will be conducted; and (4) define the City contribution, and fare structure for the Pilot Program; and further requiring that the final agreement be subject to approval by the Mayor and City Commission.

The implementation of the Pilot Program is contingent upon 1) City Commission approval of a budget enhancement in the proposed FY 2024 operating budget in the amount of $600,000, to fund a subsidy representing approximately 50% of the annual operation and maintenance costs of the proposed water taxi/ferry service based on Poseidon’s business model and 2) Poseidon securing all necessary permits and licenses for water taxi/ferry operations associated with the Pilot Program.

Attachment C depicts the service plan for the proposed Pilot Program. The agreement with Poseidon for the Pilot Program (“Agreement”) shall include, at a minimum, the essential business terms reflected in Attachment D to this Memorandum, as well as such other provisions as are customarily included in City agreements of this nature, subject to good faith negotiations.    

According to the 2022 Miami Beach Community Survey, 84.3% of residents use a car as their primary mode of transportation for trips to the mainland.

The cost associated with subsidizing 50% of the annual operation and maintenance costs of the pilot cross-bay water taxi/ferry service (based on Poseidon’s business model) is approximately $600,000. This cost has been proposed as a FY 2024 operating budget enhancement for consideration by the City Commission.

The Pilot Program with Poseidon represents a strategic step forward in addressing the City's regional multimodal transportation needs. Leveraging the lessons learned from past initiatives and the insights gained from Poseidon’s previous service, the key terms outlined above encompass key operational aspects such as schedules, fares, and compliance, aiming to establish a reliable and convenient water taxi/ferry service throughout the one-year duration of the Pilot Program. While contingent upon budget approval and securing necessary permits, the Pilot Program aligns with the City's goal to be less car-centric as well as the Administration’s commitment to innovative and sustainable mobility solutions.

Should the City Commission approve this Resolution, and the associated proposed FY 2024 operating budget enhancement via separate Resolution, the Administration will work with Poseidon to finalize the terms and execute the Agreement for the commencement of the Pilot Program on an expeditious basis.