City of Seattle ( steam ferry ) The City of Seattle was a side - wheel driven steam - powered ferry built in 1888 . This vessel was the first ferry to operate on Puget Sound . " City of Seattle " was also used in the San Francisco Bay area starting in 1913 . The ferry was known as YFB54 when owned by the U . S . navy in World War II , and as Magdalena during naval service and for a time following the war . The upper works of the ferry have been mounted on a barge hull , and are now in use as a houseboat in Sausalito , California . Design and construction . The " City of Seattle " was built in 1888 at Portland , Oregon by John Steffan and began regularly scheduled service on December 31 , 1888 . The ferry had a wide lower deck , called the “ driveway ” , which carried wagons , horses and carts , as well as all passengers . On the upper deck there was a single pilot house , facing both ends , which was built around the smokestack . Puget Sound service . The ferry ' s first owners were the West Seattle Land and Improvement Company which placed the vessel on a route running between Seattle and Milton , in West Seattle . The Seattle terminus was at a dock located at First Avenue and Marion Street . Originally the fare to ride the " City of Seattle " was 15 cents , but it was soon reduced to 5 cents as part the owners ' strategy to encourage purchase of its real estate developments in West Seattle . In the summer of 1889 , " City of Seattle " was making 10 trips daily on the route . The trip was popular and well - to - do persons began buying houses in West Seattle . A cable tramway was built to carry ferry passengers from the West Seattle dock up the bluff where the Improvement Company ' s main development projects were . The vessel was quick , and could often complete the run in less than 8 minutes . The ferry encountered some competition , first from the small steamer " Garden City " , which made 17 trips per day , but that was more than the population at the time would support . Later more serious competition arose from " Lady of the Lake " . The " Lady " offered fares at 4 cents per ride , and then " City of Seattle " offered 40 rides for a dollar . This went on until the " Lady " burned one night while hauled out for repairs . There was talk of arson , but no crime was ever charged . In 1907 " City of Seattle " was still on the same route , but demand had increased so much that a new and larger vessel was commissioned to handle the business . This was the " West Seattle " , which was built at Tacoma and entered regular service on June 27 , 1907 on the Seattle – West Seattle route . " City of Seattle " was then shifted to run to the Luna amusement park then located at Duwamish Head . 1907 was the peak year for ferry transport on the Seattle - West Seattle run , with 103 , 000 passengers carried in July alone . After that , rising competition from the expanding network of street car lines over time proved too much for the West Seattle ferries , and " City of Seattle " was taken off the route in 1911 . California service . In 1913 the Improvement Company , through its subsidiary the Oregon & Washington Ferry & Nav . Co . , sold " City of Seattle " to a California ferry concern , the Martinez and Benicia Ferry and Transportation Company , leaving only the " West Seattle " on the now money - losing route . After a hazardous voyage south in the tow of a steam schooner , " City of Seattle " reached San Francisco Bay and was placed on the ferry route from Benicia across the Carquinez Strait to Martinez The new owners added second wheelhouse to the ferry , but never changed the vessel ' s name or the machinery . The ferry was also used on the route from Mare Island to Vallejo . Naval service . During World War II the ferry was extensively rebuilt by the government . The ferry was taken into government service in 1944 , renamed " YFB54 " and used for the Mare Island service . The ferry was requisitioned - purchased by the U . S . Navy from the city of Martinez and delivered to the Mare Island Naval Shipyard on August 10 , 1944 . The ferry was renamed " Magdalena " on September 9 , 1944 . The ferry was assigned to the 12th Naval District , based San Francisco , and placed in service on November 23 , 1944 . The vessel was used to provide ferry service between Mare Island and Vallejo , California until the end of the war . The ferry continued operation under the 12th Naval District command until October 14 , 1946 , when at Mare Island the vessel was taken out of service . Later the ferry was transferred to Suisun Bay , and was struck from the Navy list on February 7 , 1947 . On December 25 , 1947 ownership of the ferry was transferred to the United States Maritime Commission for disposal . Later years . After the war , the vessel was acquired by the Mare Island Ferry Company and renamed " Magdalena " . As of 1966 the ferry was owned by Sausalito resident Alexis Tellis , and registered as a yacht . The name was still " City of Seattle " , and propulsion was still by sidewheels , but the steam engines had been replaced by diesel power . Later the vessel was placed on pilings , painted yellow , and used as a house and office for the owner of a marina known as the Yellow Ferry Harbor in Sausalito , California . Present state . The upper works of the ferry have been mounted on a concrete barge and are now in use as a houseboat at Sausalito , California .