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Port Commission hears informational presentation on proposed San Francisco Water Taxi landing-rights agreement
Summary
Port staff presented a proposed five-year landing-rights license with San Francisco Water Taxi for Pier 1.5 and Hyde Street Harbor, describing a point-to-point service, a 7% gross-revenue fee to the Port, and narrow use limits prohibiting dining cruises; staff said a vote will be scheduled once details are finalized.
Port staff gave commissioners an informational briefing on a proposed five-year landing-rights agreement with San Francisco Water Taxi, LLC that would allow point-to-point water taxi service at Pier 1.5 and Hyde Street Harbor.
The briefing, led by Peter Dailey, Deputy Director of Maritime, said the Port issued a request for interest and received four responses; staff concluded that San Francisco Water Taxi was the only respondent proposing a sustainable model that would not require a Port subsidy. Staff described an agreement that would "commence this year and run for five years through 2015 and has a five-year option," designate the two landing sites and limit use to point-to-point passenger transport, not dining or excursion services.
Why it matters: Port staff said the proposal could provide a new mode of waterfront circulation for residents and visitors while generating revenue for the Port. Under the terms described by staff, the operator would pay 7% of gross revenues to the Port, provide security deposits and insurance acceptable to the Port and the city's risk manager, and comply with standard city contract provisions including indemnity and hazardous-materials clauses.
Paul Nakamoto, identified as vice president of business development for San Francisco Water Taxi, said the company expects to start with two boats within 60 days of license approval and is exploring service to nearby points beyond San Francisco, including Sausalito, Tiburon, Oakland, Alameda and San Francisco International Airport. "We are an on-call point-to-point service that quickly moves people along the San Francisco waterfront," Nakamoto said.
Commissioners asked whether additional landings such as the Exploratorium or Fort Mason could be added later; Dailey said those sites are not currently specified in the agreement but could be added through an amendment. Commissioners also asked how the Port would prevent the service from shifting into dining cruises or ferry services; staff said the agreement and the Port tariff contain narrow-use provisions and termination rights to address such changes.
The item was presented as informational because key contractual parties were not available to finalize the agreement; staff said they will return to the Port Commission to request formal approval when details are complete.
The Port also heard public comments encouraging proponents to consult private investors and to coordinate environmental review and permitting.
