Title
Recommendation to Authorize the City Manager to Execute Two Agreements and One Amendment to Implement the Oakland Alameda Water Shuttle Phase 2 Pilot Project: (1) Agreement between City of Alameda and San Francisco Bay Area Water Emergency Transportation Authority for Shuttle Operations, (2) Funding Agreement between City of Alameda and Alameda Transportation Management Association to Transfer Financial Contributions from Private Businesses and Associations to the City of Alameda, and (3) Lease Agreement Amendment No. 1 between City of Alameda and Big Yellow Boat, LLC concerning the Vessel Used for Shuttle Operations; and
Adoption of Resolution Amending the Fiscal Year 2026-27 City Budget to Appropriate $730,000 in Alameda County Transportation Commission (Alameda CTC) Grant Funds, $1,565,000 in Private Partner Funding, and $75,000 from Fund 231 to Project G36000 (Ala-Oak Estuary Water Shuttle Pilot).
In accordance with the California Environmental Quality Act (CEQA), a Program Environmental Impact Report for the Expansion of Ferry Service in the San Francisco Bay Area was prepared by WETA and certified in accordance with CEQA (State Clearinghouse #2001112048). No further environmental review is required under Public Resources Code section 21166 and Section 15162 of the CEQA Guidelines. The funding and operational agreements are exempt from environmental review under the Common-Sense Exemption: “Where it can be Seen with Certainty that there is No Possibility that the Activity in Question May Have a Significant Effect on the Environment, the Activity is Not Subject to CEQA” (State CEQA Guidelines Section 15061(b)(3)). (Planning, Building and Transportation 20962742)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
In July 2024, the City of Alameda (City), with private and public agency partners and funding, launched the free Oakland Alameda Water Shuttle (Water Shuttle) as a two-year pilot, with service between Alameda Landing and Jack London Square. The service was an immediate success and has had high levels of ridership, serving 236,000 passengers including 56,000 bicycles in its first 23 months.
Within the first few months of launching, the partners began planning to continue the service for an additional two years from July 2026 through June 2028. Grant funding was secured from Alameda County Transportation Commission (Alameda CTC) to continue and expand the service, and all the original funding partners committed to continuing their roles and funding contributions, comprising the City, San Francisco Bay Area Water Emergency Transportation Authority (WETA), Alameda Transportation Management Association (Alameda TMA), West Alameda Transportation Demand Management Association (WATDMA), and CIM Group/Port of Oakland (CIM/Port).
To facilitate the continuation of the Water Shuttle for a second two years, as the Phase 2 Pilot, staff recommends that City Council authorize the City Manager to execute two agreements and one amendment:
1. Agreement with WETA to operate the service
2. Agreement with Alameda TMA to transfer the private financial contributions ($1,565,000) to the City
3. Amendment No. 1 to the existing Lease Agreement with Big Yellow Boat, LLC (BYB) for BYB to continue leasing the vessel to the City to be used for the service.
In May 2025, Alameda CTC awarded the City $730,000 for the Oakland Alameda Water Shuttle Operations Years three (3) and four (4), for baseline operations as part of their 2026 Comprehensive Investment Plan (2026 CIP). Staff recommends that City Council appropriate this $730,000 to the Water Shuttle project, plus the $1,565,000 in private partner funding, and allocate $75,000 in the City’s Measure BB funds as part of the required grant local match, as described in this report.
BACKGROUND
The need for an easy way to connect Alameda and Oakland across the Oakland Estuary has existed for decades and been identified in multiple city and regional planning documents, including the City’s Strategic Plan. The City’s 2009 comprehensive Estuary Crossing Study evaluated seventeen possible options for people on foot, bike and transit to cross the Estuary. The top recommended mid-term option was a water shuttle service.
Efforts to start a water shuttle service gained traction in 2022, as private businesses and associations indicated they were willing to help fund the service, waterfront developments neared completion, and WETA indicated it would perform the role of operator. The City worked with multiple partners with the goal of starting a free, ADA-accessible water shuttle service that would be easy for people with bicycles to use. The City developed a primary working Water Shuttle Partnership (Partnership) comprised of WETA, Alameda TMA, and CIM/Port.
In 2023, the City secured a $1 million grant from Alameda CTC to fund 25% of the operating costs of a two-year water shuttle pilot, with the remaining 75% ($3 million) to be covered by the Partnership, WATDMA, and the Jack London Improvement District (JLID). The grant included a commitment of $150,000 in funds and in-kind staffing from the City.
The Partnership successfully operates the Water Shuttle with an inter-agency operations model approved by City Council in February 2023. Alameda TMA created the entity Big Yellow Boat, LLC (BYB) to purchase the vessel in late 2023. BYB then retrofitted the vessel to meet water shuttle service needs and U.S. Coast Guard requirements. The vessel was named Woodstock.
On July 17, 2024, the Oakland Alameda Water Shuttle pilot launched to much fanfare and travels between Bohol Circle Immigrant Park in Alameda and Jack London Square in Oakland. Over the past two years, the program has had major ridership success. WETA and City staff are preparing a comprehensive evaluation of the two-year pilot, which will be presented to City Council this fall. Key accomplishments include:
• Through May 2026, Woodstock has carried over 236,000 passengers and 56,000 bicycles.
• Since launching, the service has expanded from 5 to 6 days a week and has increased the number of weekly trips by 84%, from 187 to 345. This is due to high demand, refined operations, existing funding capacity, and additional funding from Alameda CTC.
• The Water Shuttle now operates six days a week from about 7am to 7pm Tuesdays through Thursdays, and from about 7am to 9:30pm Fridays through Sundays.
• In May 2025, the City received a Transportation Planning Award of Excellence for the water shuttle project from the American Planning Association, California Chapter - Northern Section.
• The service continues to grow in popularity, achieving the highest ridership day, week and month to date in May 2026.
That said, a key challenge arose in 2025, when the regulatory environment changed and the Partnership learned the extent of how the California Air Resource Board’s (CARB’s) requirements would apply to the Water Shuttle. The service must become fully electric, which will require either modifying the current boat or purchasing a new boat, and providing shoreside charging infrastructure. The City, WETA and BYB are working with expert consultants to evaluate options on how this can be achieved and have received deadline extensions from CARB to meet this requirement.
DISCUSSION
This early success of the Water Shuttle pilot led the Partnership to immediately begin planning for a second two years of service, the Phase 2 Pilot, to extend the service through June 30, 2028. Staff have secured funding, planned service levels and negotiated all agreements and approvals needed for the Phase 2 Pilot. These additional two years provide time to further refine this service and explore long-term service plans.
Funding and Service Levels
Total funding for the second two years of service in Phase 2, including cash and in-kind contributions, is $3,578,000, and allows for the following service levels:
• July 2026 to October 2027: Six days of service per week (Tuesdays to Sundays) with longer weekend hours, Fridays to Sundays.
• November 2027 to June 2028: Five days of service per week (Wednesdays to Sundays) with baseline weekend hours. If funding allows, Tuesday service will continue.
In October 2024, just three months after the Water Shuttle two-year pilot launched, the City submitted a grant application for $730,000 for Oakland Alameda Water Shuttle Operations Years three (3) and four (4) to the Alameda CTC for their 2026 CIP call for projects. Even at this early date, the Partners all agreed to contribute the required 75% local matching funds at similar levels as they had for the initial pilot. In December 2024, City Council adopted a Resolution of Local Support for the project. The grant application was approved by Alameda CTC in May 2025. Staff recommends appropriating these grant funds.
The City also secured a second funding source totaling $931,000 from Alameda CTC, in response to the construction impacts of the Oakland Alameda Access Project (OAAP). These funds augment the baseline five days a week service, for the anticipated 19 months of construction in the Webster and Posey Tubes. The funds were already appropriated and began being used when service expanded in March 2026, to align with the start of the OAAP construction.
Partnership Roles and Agreements
The Partnership will continue the same inter-agency operations model for the Phase 2 pilot over the next two fiscal years, via three agreements, as described below:
WETA is responsible for operations. They will continue to provide the service using a private contractor and the vessel, Woodstock, which they will also maintain. WETA will invoice the City for the cost of operations. Additionally, WETA provides its staff time “in-kind,” meaning they do not charge the project. This includes marketing support. These roles are set forth in the attached Agreement between WETA and the City (Exhibit 1) for Phase 2. The WETA Board approved executing this Agreement at its June 11, 2026, meeting.
Alameda TMA will continue to collect the committed contributions from the business associations and individual businesses, totaling $1,565,000, and make regular payments to the City. This includes $550,000 from the Alameda TMA, $500,000 from CIM Group (Jack London Square’s property management company which contracts with the Port of Oakland), $475,000 from WATDMA and $40,000 from JLID. It also includes in-kind contributions of Alameda TMA staff time and CIM Group providing a berthing space at a Jack London Square marina for the vessel. These obligations are set forth in the attached Agreement between the TMA and the City (Exhibit 2). Staff also recommend appropriating these private partner funds.
BYB will continue to lease the vessel to the City for $12,250 per month. These obligations are set forth in the attached Amendment No. 1 to the 2024 Lease Agreement between BYB and the City (Exhibit 3).
The City, via the three Agreements described above (and further defined in Exhibits 1, 2 and 3), will continue to:
• Receive and assemble all project funding, including the private and grant funds, and use this funding to pay WETA for operations and pay BYB to lease the vessel.
• Provide the vessel to WETA at no cost, to operate the service.
• Commit $150,000 towards the two years of operations, with $75,000 to be appropriated for FY 2026-27 as included in the recommendation, and $75,000 to be included in the next Biennial Budget.
• Manage the Alameda CTC grants and receive reimbursements.
• Allow WETA to use the City-owned dock at Bohol Circle Immigrant Park for the Water Shuttle.
• Coordinate with WETA, CIM Group and the Port of Oakland on maintaining the right to use the public dock at Jack London Square.
• Continue to be the project manager for the overall pilot program, bringing together the key partners to successfully implement the Phase 2 pilot program.
Next Steps
Over the next two years, in addition to continuing the Water Shuttle service, the Partnership will be working on the following key tasks:
• Develop and bring an initial two-year pilot service evaluation to City Council this fall;
• Develop options for CARB-compliance and seek funding for electrification;
• Develop a long-term planning feasibility study by mid-2027, which includes a 10-year funding plan and recommendations on long-term project management; and
• Pursue funding opportunities to continue the Water Shuttle beyond June 2028.
ALTERNATIVES
• Approve staff recommendations and authorize the City Manager to execute the two Agreements and one Amendment and authorize the resolution to appropriate funding.
• Recommend modifications to the terms of one or more of the Agreements or Amendment. Modification to the terms will require the parties to agree to the modifications prior to execution.
FINANCIAL IMPACT
In addition to the appropriations listed in the table below, the $3,578,000 project budget for Fiscal Year (FY) 2026-27 and 2027-28 includes $745,000 in Alameda CTC funding for expanded operations during the OAAP construction in the Tubes, which was previously appropriated by City Council as part of the 2025-26 Mid-Year Budget. An additional $75,000 in local City match funding is required for FY 2027-28 and will be included in the next Biennial Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Water Shuttle project is consistent with the General Plan (2021), the Active Transportation Plan (ATP, 2022), and the City’s 2023 Strategic Plan.
• The City’s 2023 Strategic Plan (Fiscal Years 2023-2026) includes a project to “Implement a free public Water Shuttle pilot program on the west end” (#TIE7).
• General Plan Policy ME-15 Estuary Crossings states: “Work with Oakland, Alameda County, Caltrans, the Alameda County Transportation Commission, the State of California, the US Coast Guard, and other local, regional and federal partners to improve and ensure the maintenance and safe operations of Alameda’s existing bridges and tubes, and improve bicycle, pedestrian and transit access between Alameda and Oakland.” Policy ME-15 Action (d) states: “Water Service Shuttles. Work with the Alameda Transportation Management Association, WETA and Oakland stakeholders to develop and support water shuttles or provide short-hop service between Oakland and Alameda.”
• The ATP’s 2030 Infrastructure Plan includes Project #9: Estuary Water Shuttle Operations.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
A Program Environmental Impact Report for the Expansion of Ferry Service in the San Francisco Bay Area was prepared by WETA and certified in accordance with CEQA (State Clearinghouse #2001112048). No further environmental review is required under Public Resources Code section 21166 and Section 15162 of the CEQA Guidelines. The funding and operational agreements are also exempt from environmental review under the common-sense exemption: “Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA” (State CEQA Guidelines Section 15061(b)(3)) because they do not directly result in any physical change in the environment.
CLIMATE IMPACT
The public water shuttle service creates a comfortable, enticing and safe opportunity for people on foot and bike to cross the less than 1,000 feet of water that separate west Alameda from Oakland and the rest of the region, thereby likely reducing greenhouse gas emissions produced by solo motorists.
RECOMMENDATION
Authorize the City Manager to execute two agreements and one amendment to implement the Oakland Alameda Water Shuttle Phase 2 Pilot Project: (1) Agreement between City of Alameda and San Francisco Bay Area Water Emergency Transportation Authority for Shuttle Operations, (2) Funding Agreement between City of Alameda and Alameda Transportation Management Association to transfer financial contributions from private businesses and associations to the City of Alameda, and (3) Lease Agreement Amendment No. 1 between City of Alameda and Big Yellow Boat, LLC concerning the vessel used for shuttle operations; and adopt a resolution amending the Fiscal Year 2026-27 City Budget to appropriate $730,000 in Alameda County Transportation Commission (Alameda CTC) grant funds, $1,565,000 in private partner funding, and $75,000 from Fund 231 to Fund G36000 (Ala-Oak Estuary Water Shuttle Pilot).
Respectfully submitted,
Abby Thorne-Lyman, Interim Planning, Building and Transportation Director
By,
Rochelle Wheeler, Senior Transportation Coordinator
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. City-WETA Operations Agreement
2. City-Alameda TMA Funding Agreement
3. City-BYB Vessel Agreement Amendment No. 1