Title
Review of Proposal for a Non-Exclusive License Agreement with PropSF for Non-Exclusive Access to the Wes McClure Public Boat Launch and Associated Parking to Conduct a Pilot Daily Private Charter Ferry Service at the San Leandro Shoreline.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff seeks input from the Facilities and Transportation Committee on the proposed Non-Exclusive License Agreement between the City of San Leandro and PropSF for non-exclusive access to the Wes McClure public boat launch and associated parking to conduct daily private charter ferry service at the San Leandro Shoreline.
BACKGROUND
The San Leandro Shoreline area includes a number of amenities that are used by lessees and the public at large for recreation-related activities, including the Wes McClure boat launch, which is located near the intersection of Monarch Bay and Pescador Point Drives. This boat launch and its associated parking are available to the public for loading and unloading of vessels.
PropSF (“Prop”) is a commercial maritime transportation company that provides a private charter ferry service under contract to various entities who desire to travel by water, and has ongoing operations in other areas of the San Francisco Bay Area. Prop’s mission is to offer an “innovative ferry service” that provides a shorter and more consistent commute for employees throughout the Bay Area. Prop would like to utilize the City’s public boat launch for a pilot program in San Leandro to pick up and drop off passengers associated with Prop’s private charter service. In addition, Prop’s riders would like to use public parking spaces within the adjacent parking area, which are open and available for public parking.
Prop is currently working with Genentech, a biotechnology corporation that wants to utilize Prop’s services to provide private charter boat service to help its employees commute to Genentech’s headquarters in South San Francisco. The proposed boats from San Leandro would be just one part of Genentech’s transportation program, which provided over 1.25 million rides in 2017 alone.
Genentech has approximately 600 employees located within a 20-minute drive time of San Leandro and has heard from a number of employees interested in a San Leandro service. With an approximate 25-minute ride across the Bay, travelling by boat greatly reduces the commute time for Genentech employees while also helping to encourage alternative means of transportation that help minimize vehicle traffic and air pollution region-wide. Prop currently provides private charter boat services for Genentech and other employers out of marinas in Emeryville, Berkeley, Richmond, Benicia, and Tiburon.
ANALYSIS
Prop’s proposed use of the public boat launch for a private charter service is permitted under San Leandro Code. Prop’s use is subject to the general regulations for the Marina and public boat launch, as well as additional conditions as may be approved by the City Council. The proposed Non-Exclusive License Agreement (“License Agreement”) was developed as a means to officially give them a license to utilize the boat launch, specify the parameters of their use (frequency of access, utilization of parking, etc.), provide for a time-limited term of approval, clarify Prop’s rights and expectations with regards to access to the boat launch and parking area now and in the future, and ensure that they provide appropriate indemnification and insurance for the City.
The general approach and terms of the License Agreement were developed with input from various departments and divisions, including Community Development, Public Works, Finance, Engineering and Transportation, and the City Attorney’s Office. Staff worked together to develop a proposed approach that was found to be appropriate for the scope and impact of the service being provided, while also taking into consideration the time-limited scope of the project due to expected changes at the Shoreline area. As this type of service has not been previously provided at the Shoreline, a “pilot” approach that provides flexibility for both the City and user to make changes and account for any unanticipated impacts, is proposed. Based upon this, the attached Non-Exclusive License Agreement was drafted.
Under the proposed Non-Exclusive License Agreement, Prop will be permitted to utilize the public dock up to eight times per weekday, with four pick-ups and four drop-offs. Prop plans to have shuttle service generally occur once per hour between the hours of 5:00 AM - 9:00 AM and 3:00 PM - 7:00 PM. Prop’s boats seat 36 people, with a potential for up to 144 riders per day. Prop will be required to obtain a Business License.
Riders of the Prop boats would be able to park vehicles in a variety of public parking spaces in the Shoreline area, where free parking is already available all day. There are a number of parking spaces currently available within the area surrounding the boat launch, including portions of the parking lot adjacent to the boat launch, and along Monarch Bay and Pescador Point Drives (see Exhibit B of attached draft License agreement). Prop and Genentech will work with the riders to provide them direction as to where they should park, as well as provide them with parking tags for easy identification by City staff. Signage will also be installed along Pescador Point, setting aside reserved spaces for other patrons of the boat launch as well as the Spinnaker Yacht Club.
In order to better serve users, Prop and Genentech would also make improvements to the docks at the public boat launch. Under the terms of the agreement, Prop may perform improvements and upgrades to the dock with City approval and would dedicate such improvements to the City for public use. Additional provisions are included to ensure that Prop performs such work in keeping with applicable regulations, and provides appropriate insurance for the dock work as well as its ongoing operations.
The agreement as currently proposed is for an initial one-year term, with additional terms permitted on a one-year basis, subject to City Manager approval. Amendments to the agreement are permitted with approval of both parties and there is a provision for cancellation of the agreement with 30 days’ notice. Prop’s initial service at the boat launch is intended to act as a pilot project, with potential for changes and additional provisions in the agreement as the Shoreline area is developed.
The agreement includes provisions related to indemnification and insurance, which were developed and reviewed by the City Attorney’s Office and the Budget and Compliance Manager. Proposed provisions were developed to provide the City broad protection against liability, including Section 6.A, which states that “the City shall not, in any event whatsoever, be liable for any injury or damage to any property or to any person in or about the Shoreline property and its improvements or appurtenances, nor for any injury or damage to any property belonging to Prop or Prop’s passengers or to any other person which may be caused by any cause whatsoever . . . .” Additionally Prop is required to carry broad insurance, including a $5 million commercial general liability policy listing the City as additional insured.
The City currently has an exclusive negotiating rights agreement (ENRA) with Cal-Coast Development, LLC, for development of a portion of the Shoreline property, north of Fairway Drive. Under the terms of the ENRA, the City may enter into a long-term lease of portions of the Shoreline property that will result in the relocation of the Wes McClure public dock. Staff discussed the planned redevelopment of the Shoreline area with Prop and Genentech. Additionally, Cal-Coast is aware of the proposal and open to exploring long-term options in the future for Prop’s use that integrates with the planned development.
The agreement acknowledges that the existing boat launch location, and in particular, availability of parking spaces, will likely see disruption and change as a part of the redevelopment of the surrounding area by Cal-Coast. Genentech provides a wide network of bus shuttle service to its employees across the Bay Area and will explore providing bus shuttle service to employees to the San Leandro Shoreline from an off-site lot in the future. Despite these proposed changes to the future facilities, Prop and Genentech remain highly interested in using the boat launch during this interim period before construction of the broader Shoreline project commences.
Utilization of Prop’s proposed service from San Leandro has the potential to improve the quality of life for their riders, reducing their daily commute time and allowing them more productive use (e.g., utilizing Prop’s onboard Wi-Fi) of their commute. Prop’s service also has environmental benefits, reducing carbon emissions by encouraging individuals to lessen their vehicle miles travelled.
Per direction provided by the City Council at the November 19, 2018 City Council meeting, Staff is seeking input from the Facilities and Transportation Committee on the following items related to the proposal:
• Approval/Renewal Process
• Parking
• License Fee
• Community Benefits
• Next Steps [i.e., - Future Council Meeting(s)]
ATTACHMENT(S)
• Draft Non-Exclusive License Agreement (see file ID 18-616)
PREPARED BY: Katie Bowman, Economic Development Manager, Community Development Department