Title
Adoption of Resolution Authorizing the City Manager to Consent to the Six-Month Extension of the Landing Rights Agreement to Land at Harbor Bay Ferry Terminal By and Between San Francisco Bay Area Water Emergency Transportation Authority and Tideline Marine Group. (Community Development 227)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In 2017, the biotech company Exelixis moved from South San Francisco to the Harbor Bay Business Park (Business Park). Since moving to the City of Alameda (City), the company worked actively to secure alternative transportation options for its 300+ employees, many of whom live in the South Bay. As a result of this effort, Exelixis contracted for a private ferry service with the Tideline Marine Group (Tideline). On September 6, 2018, the Water Emergency Transportation Authority (WETA) Board approved Tideline’s request to conduct small vessel, private charter landings at Harbor Bay Ferry Terminal on a six-month trial basis. As required, both the Harbor Bay Isle Associates (HBIA) and the City consented to a Landing Rights Agreement to Land at Harbor Bay Ferry Terminal by and between WETA and Tideline (Agreement). The final Agreement was executed by all parties on February 25, 2019.
This proposed action to consent to a six-month extension of the Agreement to February 25, 2020, is consistent with the City’s goals and policies to support alternative transportation modes and support a major employer within the City without negatively impacting the existing parking or operations at the Harbor Bay Ferry Terminal.
BACKGROUND
Exelixis, a cancer drug developer, moved its offices from South San Francisco to the City in May 2017. The company has a ten-year lease for 110,783 square feet in two buildings at the Business Park. Exelixis recently signed a deal to lease an additional 37,000 square feet and is in discussions to lease additional space to support substantial growth within the Business Park. Exelixis is one of the City’s largest private sector employers with over 300 employees, many of whom live in the South Bay.
Exelixis, as part of its efforts to provide additional transportation options to its employees, contracted with Tideline for private ferry service. Tideline requested and received approval from WETA for a permit to conduct small vessel, private charter landings at the Harbor Bay Ferry Terminal during a six-month trial period from February 25 to August 25, 2019.
WETA was created in 2007, consolidating the San Francisco Bay Area regional ferry services. In April 2011, the City and WETA entered into a Ferry Service Operations Transfer Agreement (Transfer Agreement), for the Harbor Bay and Main Street Ferry Terminals. Under the Transfer Agreement, WETA is responsible for maintenance and operation of the waterside assets while the City is responsible for the landside assets.
The land-based portion of the Harbor Bay Ferry Terminal is owned by Harbor Bay Isle Associates (HBIA), which granted the City an easement over such land and assigned the City its license for the docking areas. The City’s authority to grant WETA docking rights under the Transfer Agreement arises pursuant to the rights received from HBIA. The consent of both the City and HBIA was therefore required for the Agreement to become effective. The City Council granted its consent on February 19, 2019.
DISCUSSION
The Agreement allowing Tideline to dock at the Harbor Bay Ferry Terminal was executed by all parties on February 25, 2019 (Exhibit 1). On July 25, 2019, Tideline requested a one-year extension of the Agreement (Exhibit 2). HBIA also submitted a letter of support for continuation of the service (Exhibit 3).
To date, Tideline has met all of WETA’s permit requirements. During its first four months of service operations (March through June), Tideline completed approximately 60 landings per month and carried an average of 12 round-trip passengers per day.
At its August 1, 2019 meeting, the WETA Board of Directors approved (4-0) an amendment to the Agreement. The WETA Board approved a six-month extension and encouraged Tideline and the Inlandboatmen’s Union of the Pacific (IUP) to come to an agreement during that period of time. According to WETA’s adopted policy for private charter landings, an applicant must “provide assurances to minimize the risk of labor disputes and satisfy applicable living wage standards.” Tideline has agreed to the six-month extension and is in on-going negotiations with IUP. At the WETA Board meeting, an IUP representative described these negotiations as “cordial and positive in tone.”
As noted, the initial six-month pilot program was scheduled to terminate on August 25, 2019, but was continued by WETA for an additional six months at its August 1, 2019 Board meeting, to February 25, 2020. Based on WETA’s six-month extension of the Agreement, rather than discontinue ferry service for six business days, the City Manager noted in his update of August 4, 2019, that ferry service would continue pending City Council’s consideration on September 3, 2019 of its consent to an extension of the Agreement.
The City is supportive of alternative transportation modes that reduce auto traffic, and defers to WETA regarding all waterside impacts and considerations. The City’s primary landside consideration is any potential impact to parking. Exelixis employees using the ferry service park their cars in South San Francisco to catch the Tideline ferry to the City. An Exelixis shuttle transports the employees to and from Exelixis’ offices to the Harbor Bay Ferry Terminal. Therefore, there are no impacts on parking at the Harbor Bay Ferry Terminal.
With WETA’s approval of the waterside use and with no impacts to the City’s landside assets, staff recommends that the City Council adopt a resolution authorizing the City Manager to consent to a six-month extension to the Agreement between WETA and Tideline.
ALTERNATIVES
The City Council could withhold its consent to Tideline’s request for an extension of the private ferry service. This decision would preclude a major employer from further developing an alternative transportation mode for its employees. It may also inhibit future public-private partnerships with businesses developing innovative, water-based mass transit options using public facilities.
FINANCIAL IMPACT
There is no financial impact on the General Fund to consent to the six-month extension to the Agreement between WETA and Tideline as the ferry service is privately funded with no financial contribution to or from the City. The proposed action will support a major employer in the City and the City’s tax base.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the following policies in the City’s General Plan:
• Guiding Policy 2.8a, Business Parks and Industrial Areas - Support development of Harbor Bay Business Park consistent with existing approvals and agreements.
• Transportation Plan, Policy 4.1.1.g: Work with appropriate regional agencies to identify the feasibility of developing presently unavailable alternative modes such as citywide and regional light rail, expanded ferry options and Bus Rapid Transit.
• Transportation Plan, Policy 4.3.4.a: Work with major employers to accommodate and promote alternative transportation modes, flexible work hours, and other travel demand management techniques and require that appropriate mitigation be funded through new development if a nexus exists.
This action is consistent with the following strategies in the City’s Transportation Choices Plan:
• Implementation Strategy 12-Transportation Partnerships with Existing Businesses and Residents-to reduce drive alone trips within and to areas outside of Alameda.
• Implementation Strategy 23-Increase Frequency and Span of Service for Ferry Service.
This action is also consistent with the City’s Economic Development Strategic Plan:
• Strategy 7.1-pursue funding to implement the 39 transportation projects and programs in the Transportation Choices Plan-including leveraging opportunities to expand water-based transportation options and enhancing links and direct access to regional transportation hubs such as ferry terminals.
ENVIRONMENTAL REVIEW
This action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15301 (minor expansion of existing facilities). The proposed private ferry service involves two, one-directional morning trips (from South San Francisco to Harbor Bay) and two, one-directional evening trips (from Harbor Bay back to South San Francisco). This is in addition to WETA’s five existing morning routes and three evening routes at Harbor Bay. The proposed project does not include any physical changes to the facilities.
CLIMATE IMPACTS
Actions that provide alternate modes of transportation are consistent with the overall goal of reducing the carbon footprint for Alameda businesses.
RECOMMENDATION
Adopt a resolution authorizing the City Manager to consent to a six-month extension to the Landing Rights Agreement to land at Harbor Bay Ferry Terminal by and between San Francisco Bay Area Water Emergency Transportation Authority and Tideline Marine Group.
CITY MANAGER RECOMMENDATION
This will continue an innovative approach that Exelixis brought forward to provide for an alternative transportation source for their employees. This collaborative effort with the City and WETA provides a transportation source that is consistent with the City Council transportation and Climate Action Plan vision and goals.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Landing Rights Agreement
2. Tideline Letter of Request
3. HBIA Letter of Support
Cc: Eric Levitt, City Manager