Title
Recommendation to Authorize the City Manager to Execute the First Amendment to Ferry Service Operations Transfer Agreement between the City of Alameda and the San Francisco Bay Area Water Emergency Transportation Authority. (Transportation 4227287)
..Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff recommends that the City Council authorize the City Manager to execute an amendment to the Ferry Service Operations Transfer Agreement (Amendment) (Exhibit 1) with the San Francisco Bay Area Water Emergency Transportation Authority (WETA) to redefine the rights and responsibilities for day-to-day management, operations, and long-term maintenance of landside assets and improvements at the Main Street Ferry Terminal and Harbor Bay Ferry Terminal.
BACKGROUND
On February 25, 2011, the City of Alameda (City) and WETA executed a Ferry Service Operations Transfer Agreement (Transfer Agreement) (Exhibit 2) applicable to the Main Street Ferry Terminal and Harbor Bay Ferry Terminal and contemplated possible future ferry service at Seaplane Lagoon. The Transfer Agreement identified ongoing obligations of the parties including ownership and maintenance of physical assets, as well as funding and ferry service obligations. Under the Transfer Agreement, WETA was granted ownership of the waterside assets for the existing terminals. The City maintained ownership of the land area of the existing terminals, as well as the landside assets, with WETA responsible for daily operations and maintenance of those landside assets.
In 2014, the City Council adopted the Alameda Point Transportation Demand Management Plan, and in 2018, adopted the Transportation Choices Plan. Both plans call for active management and eventual pricing of ferry terminal parking by the City.
On January 14, 2020, the parties executed the Seaplane Lagoon Ferry Terminal Operating Agreement (Seaplane Agreement). Under the Seaplane Agreement, the City owns and maintains at its sole expense the Seaplane Lagoon landside area, submerged lands, and landside assets. WETA owns the waterside assets (e.g. docks, landings, etc.) and is responsible for their maintenance, repair, and replacement. The Seaplane Agreement identified the goal of amending the Transfer Agreement to transfer the maintenance and operations obligations for the Main Street and Harbor Bay Terminals’ landside improvements from WETA to the City and acknowledged that the City may institute parking fees at all three Alameda ferry terminals.
Since the January 2020 City Council action to approve the Seaplane Lagoon Agreement, staff has been working with WETA staff to develop the Amendment, which will define and clarify the operation and maintenance responsibilities for the Main Street and Harbor Bay Ferry Terminals. The WETA Board is scheduled to consider the Agreement at its May 6, 2021 meeting.
DISCUSSION
The purpose of the Amendment is to update certain aspects of the Transfer Agreement and define the rights and responsibilities of WETA and the City for day-to-day management, operations, and long-term maintenance, repair and replacement of landside assets and improvements at the Main Street Terminal and Harbor Bay Terminal.
Under the Amendment, the City’s rights and responsibilities would include the maintenance and management of the Landside Assets. Landside Assets are defined as those shown in Exhibits A and B of the Amendment, and include:
o Seawall/Shoreline
o Parking Facilities (automobile and bicycle)
o Passenger drop-off and pick-up area
o Public Restroom and Passenger Waiting Area
The City will no longer transfer Harbor Bay Landscape and Lighting Assessment District (LLAD) funds, typically $78,194 annually, to WETA, and the City will consult with WETA on any changes to parking policy or fees. However, the City will retain sole authority over when to institute parking charges and the amount of those fees.
WETA’s rights and responsibilities under the Amendment would include the maintenance and management of the waterside assets are defined as those shown in Exhibits A and B of the Amendment, including:
o Pier, Access Gate, Awning Gangway
o Passenger Boarding Float
o Fixed Piles
o Channel Markers (Harbor Bay)
The Amendment stipulates that WETA shall own, operate, maintain, repair, and replace the waterside assets at WETA’s sole expense, pay for utility charges associated with waterside assets, and pay for any additional waterside equipment or dredging, as necessary, for ferry service operation.
Per the Transfer Agreement, WETA and the City are required to conduct a 10-year review in 2021 of the annual operating subsidies that the City provides to WETA. The City provides an operating subsidy of approximately $500,000 annually to WETA for the Harbor Bay Ferry service. Given the Covid-19 pandemic, and the remaining uncertainty of Regional Measure 3 (RM3), the Amendment establishes an expectation that within one-year of execution, the parties will re-evaluate the City’s transportation funding priorities for Harbor Bay and WETA’s funding needs for the Alameda/Harbor Bay Ferry Service.
In conclusion, staff is recommending approval of the Amendment. Staff believes that the Amendment represents another important step forward in the successful partnership that WETA and the City have built over the last ten (10) years to increase ferry services for Alameda residents and businesses.
ALTERNATIVES
The City Council may:
• Authorize the City Manager to execute the Amendment.
• Direct the City Manager to negotiate substantive changes to the Amendment and return at a future date for City Council consideration.
FINANCIAL IMPACT
The amendment increases maintenance obligations for the City, but those increased costs will be off-set by the agreement provision that the City will no longer be required to transfer $78,194 annually to WETA from the LLAD. At the Harbor Bay Terminal, the new maintenance obligations are anticipated to cost approximately, $20,000 annually, so the net benefit to the Harbor Bay LLAD will be approximately $59,000. Increased maintenance costs at the Main Street terminal are estimated to be approximately $50,000 annually. As ferry ridership increases after the COVID 19 Pandemic, staff anticipates that the City will determine an appropriate date to initiate parking charges at the ferry terminal parking lots, per the City Council’s 2019 direction. These parking revenues will be available to help cover maintenance costs at all three ferry terminals. Although it is not possible to estimate these revenues at this time, staff would note that in addition, staff is anticipating that at a future date, the City will discontinue the annual ferry operations subsidy of $500,000 annually. These savings will also be available to help fund facility maintenance.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Effectively facilitating WETA operations and riders’ experience is consistent with the City’s Transportation Choices Plan goals of decreasing drive alone trips at estuary crossings and increasing transit usage. Parking management and terminal access improvements are high priority, near-term projects in the Transportation Choices Plan.
The Amendment is also consistent with the City’s Climate Action and Resiliency Plan’s goal to increase mode shift and reduce Vehicle Miles Traveled (VMT).
ENVIRONMENTAL REVIEW
The proposed action to approve the Amendment is Categorically Exempt from further review under the California Environmental Quality Act pursuant to Section 15301 Existing Facilities. The Amendment does not change the physical conditions in the environment, it simply clarifies responsibilities between the parties for the existing maintenance and operations of the services and facilities.
CLIMATE IMPACT
Efficiently pricing and managing parking supplies can encourage ferry passengers to use alternate modes of transportation to reach the terminals. Net proceeds from a future parking program can be used to provide better transit, shuttle, bike and pedestrian access to the terminals, further reducing Alameda’s greenhouse gas emissions.
RECOMMENDATION
Authorize the City Manager to execute the First Amendment to Ferry Service Operations Transfer Agreement between the City of Alameda and the San Francisco Bay Area Water Emergency Transportation Authority.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval to authorize the execution of the First Amendment to Ferry Service Operations Transfer Agreement.
Respectfully submitted,
Andrew Thomas, Planning, Building and Transportation Director
By,
Brian McGuire, Planning Technician
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Amendment
2. Transfer Agreement
cc: Eric Levitt, City Manager