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HomeMy WebLinkAbout2015-09-16 e-packet@6:30 SPECIAL MEETING S CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 940183 Meeting to be held at: CITY HALL CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA WEDNESDAY, SEPTEMBER 16, 2015 6:30 P.M. NOTICE IS HEREBY GIVEN,pursuant to Section 54956 of the Govenunent Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 16'b day of September, 2015, at 6:30 P.M.,in the Municipal Services Building, Council Chambers, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to Order. 2. Roll Call. 3. Public Comments—comments are limited to items on the Special Meeting Agenda. 4. Agenda Review. 5. Study Session: Provide direction on the establishment of an Underground Utility District, Notice a Public Hearing to consider Establishment of an Underground Utility District along Spruce Avenue from Railroad Avenue to Park Way, notify affected property owners and utilities, and direct staff to develop a list of future Underground Utility Districts (CIP project no. st1204). (Sam Bautista, Principal Engineer and Swinerton Management Consulting). 6. Study Session: Oyster Point Harbor Marina and Park. 7. Adjournment. Ad, CityC .eirk/ s Staff ReDort DATE: September 16, 2015 TO: Mayor, Vice Mayor and Councilmembers FROM: Brian McMinn, Director of Public Works/City Engineer SUBJECT: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. stl204) RECOMMENDATION It is recommended that the City Council give staff direction concerning the establishment of an underground utility district along Spruce Avenue between Railroad Avenue and Park Way,direct staff to notice a public hearing to consider the establishment of an underground utility district, mail notices to affected property owners and utilities, and develop a list of future underground utility districts for the City Council's approval and prioritization. SUMMARY Staff proposes forming an underground utility district pursuant to California Public Utilities Commission ("CPUC") Rule 20A. The proposed Underground Utility District — Rule 20A Project("P roj ect")calls for undergrounding overhead utility wires on Spruce Avenues to enhance the surrounding neighborhood. Under Rule 20A,PG&E utilities will,at its own expense,replace ,existing overhead electric facilities with underground electric facilities when the governing body of a city or county determines,after consultation with the utility and after holding public hearings, that such undergrounding is in the public interest and subsequently adopts an ordinance establishing an underground utility district. Under the similar Rule 32,overhead communications utilities within the district will also place their utilities underground at their own expense. This report provides a summary of the overall process to establish an underground utility district in the downtown section of Spruce Avenue. Even if the City establishes an underground utility district for the proposed area, the City will still have sufficient work credit funding from PG&E to complete additional undergrounding work. Consequently,this report also describes a process for the City Council to develop a priority list of future undergrounding projects. BACKGROUND/DISCUS SION Moving existing overhead electric and communications utilities underground eliminates the potential hazard of downed utility lines caused by earthquakes,weather and vehicle collisions, It Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. stl 204) Page 2 of 8 improves customer service by reducing the frequency of power and communication outages from damaged lines. It also improves Americans with Disabilities Act("ADA") access by eliminating physical and visual obstructions caused by utility poles. Finally,it improves the appearance of the public street. In undergrounding projects, the overhead electric power and communication lines are reinstalled into underground trenches constructed in the public street right-of-way. Pole-mounted equipment, such as switches and transformers are moved to utility cabinets placed on sidewalk pads,installed in a manner that retains ADA access. Alternately,this equipment may be moved to underground vaults if there is sufficient space free of utility conflicts,but the cost for installation of underground vaults is not reimbursable by the Rule 20A program. New service laterals are installed underground in trenches from the main lines into each property and connected at new service panels typically mounted on the outside of buildings. New street lights are installed to replace lights mounted on utility poles. The utility's overhead lines, equipment, and poles are then removed and the sidewalk is repaired and/or replaced, Underground District Selection:. Staff thoroughly evaluated three different locations for utility underground projects before selecting the Spruce Avenue corridor as the most appropriate location for the City's first project Although not in the downtown area, Chestnut Avenue is also a viable candidate, but staff concluded it is more desirable for the City and public to focus on a single location at this time. The other two project locations that were evaluated were city parks and the downtown lanes. Staff met with the PG&E Rule 20A Program Management Liaison to conduct field reviews and discuss the suitability of the various project options. Staff also reviewed City planning documents, including the Capital Improvement Program (CIP), the Downtown Station Area Specific Plan (DSASP),the Pedestrian Master Plan,and the ADA Transition Plan for guidance on site selection. With the exception of the CIP, none of these plans provide guidance for selecting utility underground district locations. The CIP Project explicitly designates Spruce and Chestnut Avenues to be future utility underground districts;however,it does not describe the boundaries of these districts or how they were selected, The DSASP has a general goal of improving pedestrian access along the downtown lanes,but does not relate this to utility undergrounding. None of the reviewed documents addressed utility undergrounding in the parks. To qualify for Rule 20A funding, the City Council must determine that the proposed Project is in the general public interest for one or more of the following reasons: (1) undergrounding will eliminate an unusually heavy concentration of overhead electric facilities; (2)the street or right-of- way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular traffic;(3)the street or right-of-way adjoins or passes through a civic area or public recreation area or an area of unusual scenic interest to the general public; and/or(4)the street or right-of way is an Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. stl204) Page 3 of 8 arterial or major collector street. In addition,the City Council must acknowledge that wheelchair access is in the public interest and was considered as a basis for defining the boundaries of the Project area. When considering the Rule 20A eligibility criteria, it becomes clear that the public parks and the downtown lanes would be less appropriate sites for Rule 20A undergrounding projects than the Spruce: Avenue corridor. First, none of the public parks appear to satisfy any of the Rule 20A criteria,with the possible exception of the first,elimination of an unusually heavy concentration of overhead facilities. As the parks are not classified as streets or public rights-of-way,the other three criteria cannot be met. Other technical constructability issues for parks include obtaining easements through surrounding private properties to bring the utilities to street connections. Also, it would be difficult for the City Council to acknowledge that wheelchair access was considered as a basis for defining the boundaries of a project in a park area, as it is not likely that utility poles in parks are restricting wheelchair access. Second,the downtown lanes appear to satisfy the first and third Rule 20A criteria, as they have an unusually heavy concentration of overhead electric facilities and they pass through a civic area. However; in their current condition,it would be difficult for the City Council to acknowledge that wheelchair access was considered as a basis for defining the boundaries of a project in the downtown lanes. The narrow width of the downtown lanes does not allow for sidewalks, which means that pedestrians-must walk or use wheelchairs in the travel lane. There are also technical challenges with undergrounding within the lanes due to their narrow width and potential conflicts with existing underground utilities used for water supply, sewers, and storm drainage. The portion of Spruce Avenue adjoining the downtown area satisfies all of the criteria for obtaining undergrounding funding through the Rule 20A program. Namely,utility undergrounding in the Spruce Avenue corridor will eliminate an unusually heavy concentration of overhead facilities. Spruce Avenue is a minor arterial street used extensively by the general public to carry a heavy volume of both pedestrian and vehicle traffic, and Spruce Avenue adjoins the downtown civic area. Establishing the district on this street would also allow the City Council to acknowledge that wheelchair access was considered as a basis for defining the boundaries of the Project because removing the utility poles and their supporting guy wires currently placed in the sidewalk will reduce the number of sidewalk obstructions along the Spruce Avenue corridors. In light of the above analysis, staff recommends that the City Council initiate the process to establish a new underground utility district consisting of the properties adjoining Spruce Avenue from the north side of Railroad Avenue to the south side of Park Way (see attached Proposed Spruce Avenue Underground Utility District Map). The extent of this proposed district is 2,600 feet and includes 15 commercial properties(including two schools and two churches)and 30 single family residences. The proposed district currently has approximately 26 utility poles that will be replaced by approximately 14 streetlight poles and five to 10-utility cabinets(actual numbers will Staff Repoit Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. stl204) Page 4 of 8 be determined in the design phase). Available Rule 20A Work Credits and Cost Estimate: PG&E allocates approximately$200,000 of work credits to the City each year and currently has accumulated $6,173,446 of work credits. The allocation is made in May each year based on the number of electric meters in the community. These work credits are not a grant and do not represent funds deposited with the City. PG&E uses the term "work credits"rather than"funds" because it does not actually obtain the funds until the City establishes a qualified district. PG&E borrows funds to complete its project work and pays the loan with proceeds from the ratepayers throughout PG&E's entire service area, which is why the projects should be of general public benefit. The City has the option of borrowing another five years of future credits to raise the available balance to $7,192,126, although this will not be needed for the proposed Project, The City has sufficient credits to fund to the proposed Spruce Avenue Underground Utility District and one or two similar additional projects. The overhead communication utilities follow a similar CPUC Rule 32 rather than Rule 20A for undergrounding projects. Under Rule 32, they do not allocate work credits to the City, but fund their share of the utility conversions through their own programs. They are required to cooperate with and follow PG&E's lead in completing qualified undergrounding projects. The qualification criteria are the same as listed above for Rule 20A. In addition,the City has budgeted$170,000 in the fiscal year 2015/16 CIP —Rule 20A project stl 204 for project management and construction inspection expenses. As described below,the City will need to budget for replacement streetlights in a future CIP budget cycle, prior to the start of the undergrounding construction on Spruce Avenue. The preliminary cost estimate for the Spruce Avenue Underground Utility District is$2.7 million, excluding costs for new streetlights. A conservative estimate, appropriate for this preliminary planning phase,assumes costs for undergrounding the main distribution lines at$1,000 per linear foot. Staff recommends also using a portion of the PG&E work credits for installation of new service panels and underground service laterals for customers, as this is allowed by Rule 20A. Panel conversions are estimated at $2,000 per residential lot and $5,000 per commercial lot. Service laterals are estimated at $1,500 per lot. There are currently 14 streetlights along this corridor, I I of which are mounted on the utility poles that would be removed. Consequently, these will need to be replaced at the City's cost as Rule 20A does not cover the City's facilities. Assuming the City replaces all 14 streetlights(including the foundations, poles, conduits, and wiring) at an estimated of cost $13,000 per light, the total estimated cost of streetlight replacement is currently $182,000. A photometric analysis, which should be included in the design to confirm the replacement lighting will meet current standards, may result in different light spacing and quantities. This estimated cost does not include escalation Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO, st1204) Page 5 of 8 to the year of installation. Establishing the District and Completing the Project: When the City establishes an underground utility district, it is setting the boundaries of an area where existing overhead utilities roust beremoved and no new overhead utilities maybe installed. If the City establishes the district in accordance with CPUC Electric Rule 20A, PG&E and the other overhead communications utilities are responsible for most of the project costs. The Rule 20A and the South San Francisco Municipal Code requirements for utility district establishment are: 1. The City consults with PG&],,-and the other affected utilities, Staff representatives have met with the assigned PG&E liaison several times and have walked the proposed Spruce Avenue Underground Utility District to evaluate its suitability and to estimate costs. Staff will meet with the communication utilities before the public hearing to discuss the formation of the proposed utility district. 2. The City Council holds a public hearing to assess the public benefit of establishing a utility underground district. SSFMC § 13.16.020authorizes the City Council to hold public hearings to ascertain whether public necessity,health, safety,or welfare requires removal of overhead utilities and the underground installation of those facilities. Section 13.16.020 further requires that the City notify all affected property owners and utilities by mail at least thirty(30) days prior to the public hearing. Attached to this report is a suggested notice for a.public hearing to be held on October 28,2015 that includes a description of the proposed Spruce Avenue Underground Utility District and description of the undergrounding process, 3. The City Council determines that undergrounding is in the general public interest for one or more of the following reasons.• L Such undergrounding will avoid or eliminate an unusually heavy concentration of overhead electric,fticilities'- 2. The street or road or right-of-way is extensively used by the general public and carries a heavy volume of pedestrian or vehicular trqf ,fic; 3. The street or road or right-of-wqy adjoins or passes through a civic area or public recreation area or an area of unusual scenic interest to the general public; and Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. st 1204) Page 6 of 8 4. The street or road or right-of-way is an arterial street or major collector. As described above, Spruce Avenue from Railroad Avenue to Park Way satisfies all four criteria. This section of Spruce Avenue has an unusually heavy concentration of overhead electric facilities, it is extensively used by the general public and carries a heavy volume of vehicular traffic, it adjoins the downtown civic area, and it is an arterial street. 4. The City Council acknowledges that wheelchair access is in the public interest and has been considered as a basis for defining the boundaries of the proposed Spruce Avenue Underground Utility District, As replacing the utility poles with a smaller number of carefully placed street lights utility cabinets and repairing the sidewalks will improve wheelchair access,the City Council will be able to make this acknowledgement. S. The Cite Council adopts an ordinance creating an underground utility district and ordering the removal of the overhead utilities and the installation of such utilities underground In accordance with SSFMC 13.16.030 and Rule 20A,if,after the public hearing,the City Council finds that establishing the underground utility district is in the general public interest, the City Council will then adopt an ordinance establishing the district boundaries. This ordinance must require removal of all overhead electric and communications facilities, retrofit all properties to receive underground services within the district, authorize PG&E to discontinue overhead service and fix a time within which such work must be done. Rule 20A(3) allows the City Council to direct PG&E to use City credits to pay for up to 100 feet of property underground electric service laterals and up to$1500 per service entrance for electric panel.conversions per affected property within the district. Staff recomin ends this use of credits rather than requiring individual property owners to bear this cost. When the City notifies PG&E of the creation of its new district,PG&E will put the project into a queue consisting of all other qualified projects throughout its service area. It takes about a year for projects to rise to the top of the queue, at which time the utility companies begin designing their facilities. While the project is in the queue, the City and the utilities will designate a Lead Agent for the project. The Lead Agent may be the City, PG&E, or one of the communications utilities. The Lead Agent coordinates the group effort,merges the composite drawings from each utility substructure design into a single plan(known as the joint trench composite),and documents the cost share for each utility to reside its facilities in the joint trench(known as"Form B"). Staff recommends that the City serve as the Lead Agent for the Spruce Avenue project as this will reduce the duration of the project by about a year, as detailed below. The utilities will reimburse Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. stl204) Page 7 of 8 the City for its costs to complete the technical documents including the joint trench composite and Form. B. Rule 20A projects typically take approximately five to seven years to complete (from planning through construction). Preliminary planning to establish the district typically takes up to a year. Once the district is established., it goes into a queue at PG&E for another year while the utility companies arrange for funding and schedule their designers. The utilities' design of their facilities to be installed in the joint trench and the Lead Agent's joint trench composite takes approximately one year if the City serves as Lead Agent, or twice that if one of the utilities takes this role. Construction of the underground facilities and service connections takes approximately one and one-half years. Site restoration including removing the poles, site repair, and final cleanup takes another half year. Establishing a priority list of future districts: After establishing the Spruce Avenue Underground Utility District, the City will have sufficient work credits remaining to complete at least one and perhaps two more utility undergrounding projects of similar size. It is common practice and highly recommended that cities develop a priority list for future underground utility districts so that planning can commence on the next underground utility projects as soon as funding is available. Cities typically review and revise their priority lists on a regular basis, such as once a year with their Capital Improvement Programs. The specific qualifying criteria for underground districts are listed above in the "Establishing the District" section. Because the projects are ultimately paid for by utility ratepayers, these criteria are intended to select projects that benefit a large portion of the general public. The criteria emphasize projects on arterial streets and in downtown areas. Of nine underground utility districts recently established in San Mateo County, eight are located along arterial streets and/or in downtown areas. Other constructability considerations for district selection are if there is sufficient public right-of-way free of other utility conflicts for installation of the joint trench and sidewalk pads. The City Council can direct staff to look into specific streets for utility undergrounding or provide general guidance to staff in selecting candidate streets and locations. Staff will then return with a list of streets and recommended priorities for City Council consideration. FUNDING The City has nearly $6.2 million of work credits allocated by PG&E for qualified underground utility conversion projects, The City may borrow another $1, million against its future credit allotments to raise this amount to nearly$7.2 million. This is sufficient to complete the overhead utility conversions in the proposed Spruce Avenue Underground Utility District, In addition,the City has funds budgeted in the fiscal year 2015/16 CIP for project management expenses for this Staff Report Subject: PROVIDE DIRECTION ON THE ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT,NOTICE A PUBLIC HEARING TO CONSIDER ESTABLISHMENT OF AN UNDERGROUND UTILITY DISTRICT ALONG SPRUCE AVENUE FROM RAILROAD AVENUE TO PARK WAY, NOTIFY AFFECTED PROPERTY OWNERS AND UTILITIES, AND DIRECT STAFF TO DEVELOP A LIST OF FUTURE UNDERGROUND UTILITY DISTRICTS (CIP PROJECT NO. st1204) Page 8 of 8 proj ect. CONCLUSION The proposed Project is in the general public interest and satisfies the necessary criteria. Consequently, staff recommends that the City Council initiate the process to establish an underground utility district on the Spruce Avenue corridor. Such process includes noticing a public hearing and mailing notices of the public hearing to affected property owners and utilities. Setting the public hearing date for the regular City Council meeting of October 28, 2015 will allow for the required thirty day notice. Upon closing the public hearing, Council may then introduce an ordinance to establish the district and may adopt this ordinance at a following regular meeting. Furthermore, staff recommends creating a list of potential future districts that meet the Rule 20A criteria for City Council review and approval. �Jl By: Approved:,, Brian McMinn Mike Futrell Director of Public Works/City Engineer City Manager Attachment: Proposed Spruce Avenue Underground Utility District Boundary Map Draft Public Hearing Notice and Informational Brochure PowerPoint Presentation 2516738.1 Q as '�2 " ri yu C7 t 'E ;� (J) C-A r;��ells'' '', •.w I Zi �� a , o X� 0 CL bb c to th as _ '2 al tj m tl� U) bl) Lr) � Ci as -8 4U4 0 Ln = OR 2 E bO � M bj) u cz C'a CY £ QA 40. cd Id 73 U O cc bj) 0 ccl ;> 0 -'S U 0 121 oj ca 0 41 cd U) E Ln En E 21 'n �t Z ;� u 0 L.0 -;.4 v Ln cd al > t un Cd U C5� 4� +b C) UD 0 Q ti 7r- :� E -Z� C) -6 V cn bt Ln —14 0 GO — — Q 7S Cl o Ln R U Q t8 3 0 0 a) 10 0 zo lc� 14 0 E 0 R U 0 C) I cq 7Z� 0 un �4 v C, E Cd CA E 0 0 4 > 0 0 a M S-A CA rv� 4= 414 x 0 0 0 City of South San, Francisco Proposed Spruce Avenue Underground Utility i i 010 12161P2 01 101040 01 21 61 050� 01216'2160 �j" 012292260 012 16 4p 162150 012,162180' (' 01'21521�0:, j112162T10 t},1216z I0 nCG"° X121 s40�' 64 1' 1' t" 2284090 o1i m 10 Ck At .m 4 7-/1 2282510 a 282 ?S�t 012302180 4U 2282540 01 ( E/012302 0 ., a 01 81210 ,' L) 01 X30 10 VIET Ov a 27320 0112321 ' 0 i 0 2321 ..0 IV 01 27 j30 J 01232.X10 1227224 f 01232 10 Legere! District Boundary 01232356 tv 01 71110 (12323 Utility Distr" ; m Neu m 22792?D 01 323'55 � �r � Parcels in ICDistr'ict X271230 .� 22712 �J Other Parcels �,� � a12s2 �a JD I'll,, 9/11/201 Undei,Igrot,imd Utility IDS ,°tlri Caw. Igo City Council Meefli ig, Sti,idy Sess"1011 &lly l' uIle 20A Amm mom y ti " ��pp � ������� Ili a. Underground Utility District - Rule 20A Project (Project No. st1 . 4) identities Sp,ruce and Chestnut for utility under reundin ' or, City can establish a half-mile long Spruce Avenue Underground Utility District now s PGEtE will provide $7.2 million, enough for over a mil.e of underreundin City can develop a priority list of future � underreunding projects and begin planning therr� ne ,� rl 1 9/11/2{ 15 Why U n iii UU ri ,of 41"41 xb /lri h ; 4�;x III A/011, I " !; Regulatory ewiu 'rz,M moxw w or-k Iln 1967, CPUC enacted Rule 20A to create the P EtE Tariff program r,. Allocates work credits to cities annually for undergrounding projects based on the number of meters. (5sF receives -$200 0O0Jyr) ��- When a city establishes a district and has sufficient credits, PGEtE borrows money to build the project and recovers its cost through rates p CPUC Rule 32 requires telecommunication utilitiies to follow PGEE's lead City's Utility Undergrounding Enabling Ordinance rly Municipal Code Chapter 13.16 "Underground Utility Installations" � codifies the City's enabling ordinance Authorizes holding a public hearing to ascertain if public necessity, health, safety, or welfare requires removing overhead utilities a/lo, City must mail notice to affected property owners and utilities at least 30 days P rior to the p ublic hearing 2 9/11/2015 mil u° r w for District� m b l i'�s h rn ft Rules 20A and 32 require that the City first find that / undergrounding will be in the general public interest because: � �. It eliminates an unusually heavy concentration of y overhead electric facilities ' 2 Street(s) in the district are arterials or major collectors Street(s) or rights-of-way in the district are extensively used by the general public, and/or Street(s) or rights-of-way in the district adjoin or are in a civic area, public recreation area or area of unusual` scenic interest The proposed Spruce Avenue Underground Utility District satisfies these four criteria �o I,> Chestnut Avenue G� viable location meeting all criteria except being in a civic area rs Can retain on priority list of future projects South Spruce Avenue r, Cost prohibitive for City to fund undergrounding of large, long industrial lateral services Public (Parks Not arterials so cannot meet criteria with possible exception of removing an unusually heavy concentration of overhead facilities i� Need dedicated easements through private lots (residential side yards")for joint trenchr "Non-traditional"project not likely supported by communications utilities ll, 3 9/11/2015 Evaluation af Ploss iii b ie IL oca .;i ans COI id iir i u ed Downtown Lanes Not arterials nor,heavily used Iby the general public Lanes are narrow with limited right-of-way(20r) r Water and sewer utility conflicts make siting the joint trench difficult % v- No space for aboveground cabinets so City would need to pay for underground r. r vaults Vaults would hamper making lanes pedestrian friendly and pavement maintenance ^ VIII m.'Il�mm'�`l°w�a ati^Wum ^w r bf r B o r Ilfiti N " ���m���' i!Wira ( 1 � 2,600 feet from Railroad Avenue to dark 'ay i/o,, Heavy concentration n� � , ,x m� t ^ � of overhead utilities rl Minor arterial street " " r, I xtensively used with >10,000 Average Dail _ � 2y ���� �� « � � �� �j A Trips, w o�,, Adjoins downtor iVIIC area j. �....�. . ..w �.r.' > ,r� 4 9/11/2015 t needs u move"? w �uiwmwh�wo�r(got 5 9/11/2015 Who n e s move? at&t %j �"ms„µ � Inm�m �Gyif'rl%r��`1� P i Il e y Steps (Overvil"iew) City Establishes Underground Utflity District Project placed in queue Design f„ Construction t Joint trench and pad-mounted equipment i,). Service laterals to homes rid businesses ::. New street lights F �o 6 9/1.1/2015 qrr zi r /ir r Q l rI If r! � ''� �f. r �ir✓ 4� � r% r Vp �ira ir' r�r 11, 1 , �f1 ( ;'% r✓ i�:. rra/� !vr n V;y rer� rrrri � rGrii rrm /m/ �i;�c r rcrio. pm� ' o' City Must: or Develop the district boundary Map -Notify affected property owners and utilities at ; least 30 days prior to a public hearing Hold a Public Hearing to receive puiblic comment oo Introduce an ordlinance establishing the n Underground Utility (District V _Conduct second reading, then adopt the ordinancer9' Execute Agreement with PCE PCEE then places the project into the queue as it 1 ' arranges funding and coordinates its designers lkwvrWNrur ca�uso��a Way ............ _.. _.._.. .._...._... //// adR^�ria Feu aJEre Laura "r ,ePm V a ro """" ,,, Cpµ,C'" / rj� °oeaq�.aa� edSpivarcurA.wr!e¢waua. `"m"'„,. ,.z.„ °��a /i%�j��� / /�� r/ IC;FN^3�6'kor^Y /n/ S AVE i spruce Avenue from railroad Avenue to Park Way Jr rp ,aa aa.r, - 2,600 linear feet o-,a : ar m 45 Properties d - « 15 Commercial ara Schools 2 Churches 30 Residential a.»u 26 utility poles ' 14 street lights . 11 on utility poles Lag uV vy 7 9/11/2015 Lr'r die ros o oaeu't Spruce Avenue UftW Underground District o{asawraau 4u an' AR wry aro aaaes9r at the usuHar City Cownned meetU 4 on !fiASfi'kfnc rvamo9wmq naaw3 dagrd's~wc't Mime October' `� ��'�� @aa aa�vd a o p. w to pFu, x �AG.au7 TO at",d,di,c pilhUe:]omigto n' a�lr dAras ,rmR!'ap�azn•)x+1 tvY Vw e. p%renard whlusr;rywrua MNpwstt�.4wna rmxiGfaar ev�,niY;,. utul�.rc A,xx � war wrawrc mad,w it ii.nAu m 7-00 pin �eoeSY 1�:1 tl9 a f Y m k ei k C1kd9 . f'd dw 6tN 40,4 NSwf Cla,tiTw 6ga1a*,a.. City/b uQcaW Hhamb tr,r"—kxn?Cft.rool t nn—,wi6)E its Y a Municipal Services,Building 33 Arroyo Road South Spa Francisco i?, Jr.T—h—,.do p"n do F8etiw:.r a'. mnt a 0 aC.,n,and-k-th f..T�c r,�wk""y.5,4 Ur.�t�*xSSkkA'rdh�rl�y, :nu_n P�"�4a�ftiM av �' rw a-u t-,y'erraar.rc C.kY:,tM1'.IO d &uuti7t.NaAi wcvk+uvseaanry 1f „ pu (A IM1%vo,d f di�- fir, uw�'Y,re g+ l�,tY7wY t u Hari Y�r,.y,,ohYerk.Ypt iii%%// .: r, IT .., Y s 1 u:a e1, X�Je:,,n,r a rr.Y ,4, d,.... , , •' r ,,.;.h. , , u, . „ a.;, 1 � 4? n'anep flr.Gre,trun7 ,. Q.R'Clnzi a+t+, r s, nr v ,,. , •rrh 1 .,4 w r.. (A.. ln:inmY-t yr ftltA E.,Pnr/f a.C.r✓s uf,rGv e�tlrle,•^ °w .. r N .-..,il _ rr.v�Y'y ;�,.,c 1 , _ .. Y. PI t w ;,.J nu, c il,ik'V .YI .6 At n0 r . N � IIIIIIIIIIIIIIIIIIIII����IIINflryIa�NIIIN^II� 1V raa i�, 0 wl .I� „vvp vvrv, s u. Ivy k 1. G � \ Jt as 4Y 1 gyp Y71 Y11'Yf f CF a A S Y; r I ��� ar lrrvor t t fe,a r1� Y 1[ t II I Y 1 d!I, T1. ���� 9/11/20 .5 , y d lri rPrroi �/i� l nr/r, ''''�y 0 p / w' y G // �� l�'r �l� ��f�iinl: N/rra> 1 . D e s i g n of Each utility is responsible for its own design oo City will need to design new street lights oz- Lead pent is designated to coordinate all Futility designs and design the joint trench ys, . the r r r , � �� r rr 1 , ,, r r, ,`. I;�.,,, �,, %;r v�,,,,,� l��rr ��� � a � �,,r it, The Lead Agent: >-i,,Coordinates project with all utilities ��Incorporates each utility's substructure design into single plan (joint trench c�omplosite) lo,Determines each utility's cost for the joint trench construction (Form B) � p%,,,. The City, PGEtE, or one of the telecommunications utilities may be designated the Lead Agent Iip,, If the City chosen to be the Lead Agent it will reduce � the project duration by about a year r,.City as Lead Agent will be reimbursed costs incurred to prepare the joint trench composite and dorm B dir�r/ „ 6 9 9/11/201.5 l�r orr r��ire� �n� j ,c d1r/ /i cr ii��:%r o% /l'rc l� I!�r�r' � � f� N�1J, (�� f� �� �f� Yff�,� � a/r0� �cg�tnnl 7rAp, ,rjj 'viii,/l /¢ril `/ prm��% c Ili "' '„ "n �✓' +1 � r . Construct joint trench with underground utilities P; Install pad-mounted equipment o� Install new street lights y ��? Construct underground service laterals to each lot .; � Make panel conversions to receive new service A ro­ Transfer services to underground utilities , Remove overhead lines and pales f 1 Restore sidewalks and AA accessibility VVI a l 10 9/11/2115 � t aziM yr ;A:H a a s JYrW CRIDUN tawdo'�t','N «Frv.� Fr,F•rMntF+v,rl�, �����e� Stre" �,!'t mryry City has 14 street lights in the proposed district: r� 11 mounted on utility poles 3 on city poles oz, New stre tli ,h s costs j about $13,000 each lJ �1?,,Tot,at street light cyst f estimated at $182,000 IN' 11 9/11/2.015 N � ��,�, Il��ry�pww p I� �NN� [ii d umYNN IHi mixuxm Npl�� IMI.. � cwimL''b livmir� viii ..1 � , S f wb �u e �a 2016 2017 2018 2019 k11 l az ck Ilo ra, 3 a cg! rdD Ig2!g Qua 4 2�l(1 a i I EstabHsh District Ueu _ Joint Trench Design Joint Trench t rc fion A Services Construction Street Lights Construction Service Conversions µW I Pole Re moval and Cleanup R,,ui �vAItlHM � �W'F I�. ��n line A'n,,,,,,, hm�a� Proposed Spruce Avenue Undergroui,W Utility District Available Funds PG&E W'ork Credits $6,200,000 Available to Borrow $"I"000,000 Total Available Credits $7,200,000 Costs Quantity Unit Cost Utility Undergrounding 2,600 ff $1,000/if $2,600,000 Service Laterals, 45 $1.,wo $67,500 Residential Panel Clonversions $2,000 $60,,000 Commercial Parwe� Conversions 15 $5,000 $75,000 Total Costs $2,802,500 flRenriaining � C... Rule � Credits � 12 9/11/2015 Cil"ity B ................. ......... Funds project No. st, 1,204 $1 P �0sts Qattty, Unit Cost Construction i ana. rrrren't I $108,800 Street Lights 1 4 $3.3,1000 _I $1,82,000 'r6tW� $290,800 irc calate to 201 tPd� Pribr-ffty o After constructing the Spruce Avenue District the City will have remaining credits for one or two moire projects Staff seeks direction to bring feasible district locations to ' Gouncit to develop a priority lists Ideal districts: oo- Are of general public interest and desirability io- Improve the safety and convenience of a large number of the public r� Are located alone arterials and in downtowns Have sufficient right-of-way free of confrlicts to instatl the point trench and sideway pads "Al it> f,?J,% �1 13 9/1.1/2915 cirri uu m I u Ery of t Fu iwim p, to rail notice to affected property %i irect staff owners and utilities o,- Hold a Public Hearing on October 28, 201 Adopt any ordinance to establish the Spruce Avenue Underground Utility District Ph, 10/28 - Furst Reading to Introduce Ordinance oo, 12/9 - Second Reading to Adopt Ordinance oo ,. Direct staff to bring a list of feasible future districts for :ouncil s prioritization 14 9/11/2015 �ul w� q�pIIIIV�„y�y. �m � N MW OU� µVI I N 'I�A !W NIµ 1II�IIIIIIIIIIrypI;pylryl III�II�I��Ip h o i � "VIVIm il. II�II' iI i �'MWs �IINIIIIHI; N Q,r a >s 15 S Staff R�emport DATE: September 16, 2015 TO,: Mayor, Vice Mayor, and Councilmembers FROM: Jim Steele, Assistant City Manager 9\'>L, SUBJECT: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK RECOMMENDATION It is recommended that the City Council review the information in this staff report and provide staff direction on actions to take, if any, following the Local Agency Formation Commission (LAFCo) recommendation to dissolve the San Mateo County Harbor District (the District) REPORT SUMMARY/OUTLINE This report is structured as follows: 1. Background/Discussion A. History/Joint Powers Agreement B. San Mateo County Grand Jury and LAFCo Recommendation and Action II. Current Oyster Point Marina and Park Financial Picture A. Operating Budget B. Capital Improvements C. Current Debt 111. Potential Organization Structure for City Management and Financial Implications of Oyster Point Marina and Park A. Reorganization of Oyster Point Marina and Park under the City of South San Francisco Parks and Recreation Department B. Potential Cost of the Oyster Point Marina and Park Under the City of South San Francisco Parks and Recreation Department C. Potential Capital Improvements Under the City of South San Francisco Parks and Recreation Department D. Fire, Police and Public Works Impact E. Anticipated Revenues Should the City of South San Francisco Assume Responsibility for Oyster Point Marina and Park IL IV. Discussion Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 2 of 11 L BACKGROUND/DISCUSSION A. History/Joint Powers Agreement The City of South San Francisco entered into a Joint Powers Agreement (JPA) with the San Mateo County Harbor District (District) in 1977. Under that JPA, the District has responsibility for operation of the Oyster Point Marina and Park (OPM). Further, the District obtained State loan funding to make improvements to the marina which included: building additional berths, dredging, leachate control and a clay clap at the closed landfiff), constructing a breakwater, a promenade, landscaping, the Harbormaster's Office, a dry storage area, restrooms, a fishing pier, restrooms, lighting, sewer and utilities. Under the JPA, the District operates and manages OPM (including the park areas) in return for keeping the revenues from the marina, including boat/berth rentals and any lease revenue from renting land to concessionaires. A copy of the JPA and the three subsequent amendments are attached as Attachment A. The term of the JPA expires in November 2026. Under the terms of the JPA, if the District is dissolved prior to the expiration, the rights and responsibilities of operating the Marina would be the responsibility of the successor agency of the District. The JPA also specifies that if the JPA is terminated by mutual consent of the parties, the Harbor District employees will be retained by the City for a year, and their current salaries and benefits maintained for that one year. B. San Mateo County Grand Jury and LAFCo Recommendation and Action On July 9, 2014, the San Mateo County Grand Jury issued a report titled What is the Price of Disfunction? The San Mateo County Harbor District Report. The report recommended dissolution of the San Mateo County Harbor District. On July 8, 2015 LAFCo issued a final report that was subsequently approved by the LAFCo Commission on July 15, 2015. That report concluded: "...(Harbor District) services could be provided cost effectively by a successor agency, eliminating costs associated with a separate administration and governing board. It is therefore recommended that upon considering the accompanying municipal service review and adopting service review determinations, the Commission reaffirm the dissolution sphere of influence of the San Mateo County Harbor District..." (page 43). (1)Under the terms of the JPA,after the leachate control system and clay cap were installed,any future improvements to those systems would be the responsibility of the City (JPA,page 16). Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 3 of 11 The report further recommended the following: "The City of South San Francisco (SSF) and the County of San Mateo should continue to confer and research issues and options affecting the feasibility of dissolving the ...(Harbor District), transferring responsibilities to the County as successor agency, and transitioning to SSF operation of OPM via a(Joint Powers Authority)JPA"(page 41). II. Current Oyster Point Marina and Park Financial Picture A. Operating Budget The Oyster Point Marina and Park in South San Francisco and the Pillar Point Harbor outside of Half Moon Bay each operate at a loss. This was one of the Grand Jury's findings of the current Harbor District operations. As indicated in Table I below, the District's operating costs are not covered by the District's operating revenues, and rely on countywide property taxes to fill in the gap. The adopted budget indicates that $3.6 million in countywide property taxes are needed to cover the gap between operating revenues and expenses. Table t SAN MATEO COUNTY HARBOR DISTRICT FINANCIAL OVERVIEW 2012-13 2013-14 2014-15 2015-16 Revenues Actual Actual Projected Adopted Harbor Commissioners $ - $ - $ - $ - Administration - - - - Pillar Point Harbor 2,067,555 2,380,828 3,117,080 2,558,500 Oyster Point Marina 1,361,209 1,616,240 1,420,742 1,370,333 Total Revenues $ 3,428,764 $ 3,997,068 $ 4,537,822 $ 3,928,833 Expenses Harbor Commissioners $ 529,589 $ 493,225 $ 804,979 $ 441,658 Administration 1,160,628 1,190,853 1,3 97,954 1,567,590 Pillar Point Harbor 2,291,655 2,471,208 3,117,080 3,382,650 Oyster Point Marina 1,689,314 1,724,398 2,020,788 2,144,068 Total Expenses $ 5,671,186 $ 5,879,684 $ 7,340,801 $ 7,535,966 Net Surplus/(Deficit) Harbor Commissioners $ (529,589) $ (493,225) $ (804,979) $ (441,658) Administration (1,160,628) (1,190,853) (1,397,954) (1,567,590) Pillar Point Harbor (224,100) (90,380) - (824,150) Oyster Point Marina (328,105) (108,158) (600,046) (773,735) Total Operating Net Surplus/(Deficit) $ (2,242,422) $ (1,882,616) $ (2,802,979) $ (3,607,133) Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 4 of 11 The budget for Oyster Point Marina includes both marina business operations and park/open space operations. Currently, Oyster Point Marina costs $3.1 million to operate.(2) Below are the staff costs broken out for the Oyster Point Marina and Park.(3) Table 11 OYSTER POINT MARINA AND PARK STAFFING COSTS Position Hrly Rate Annual Cost Qty Total Parks Marina Harbormaster $67.57 $207,632 1 $207,632 $ 41,526 $ 166,106 Assistant Harbormaster $46.80 $151,056 1 $151,056 $ 75,528 $ 75,528 Lead Maintenance Worker $42.45 $139,207 1 $139;207 $ 69,604 $ 69,604 Business Manager(12-24 months)* $50.00 $159,773 1 1 $159,773 $ - $ 159,773 Deputy Harbormaster $36.67 $123,462 5 $617,310 $246,924 $ 370,386 Admin Assistant I $29.62 $104,259 1 $104,259 $ 52,130 $ 52,130 Hourly Harbor Workers $15.22 $65,034 2 $130,068 $ - $ 130,068 Total Staffing Estimate: $ 1,509,305 $485,711 $ 1,023,593 Current Oyster Point Marina revenues are $1.4 million, leaving an operating deficit of $1.7 million. Considering Oyster Point Marina operational trends discretely over the past 5 years, expenses are increasing, while revenues are decreasing. Oyster Point Marina Financial Overview N $2.4 c $2.2 $2.0 � w IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIRevenues $1.8 iiiiiiiiiiiiiiiiiiiiiillillilillillillilI $1.6 I Linear(Revenues) $1.4 Linear(Expenses) $1.2 $1.0 .......... FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Actual Actual Actual Actual Projected Adopted (2)The operating cost for Oyster Point includes an assumption that 50%of the cost for Harbor Commissioners and Administration is attributable to Oyster Point Marina. (3)Based on City of South San Francisco staff estimate for allocation of staffing costs between Oyster Point Park and Oyster Point Marina. Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 5 of 11 B. Capital Improvements The San Mateo County Harbor District has historically appropriated limited funds toward Oyster Point Marina and Park capital improvements in comparison to Pillar Point Harbor.(3) lk'iguirc 11 CIP Budget History N $6.0 c 0 $5.0 $4.0 $3.0 $2.0 1 —EEL—=— $ Adopted Adopted Adopted Adopted 2012-13 2013-14 2014-15 2015-16 111111111111 Oyster Point Marina 2,959,439 215,000 25,000 115,000 IIIIIIIIIII Pillar Point Harbor 2,394,477 1,481,329 520,933 710,000 C. Current Debt The Harbor District has a consolidated loan agreement with the State Department of Boating and Waterways (SDBW) that will be paid off as of December 31, 2018, with the payment schedule shown in Table III. The loan payments are factored into the budget figures cited above. The Harbor District is actively working to refinance outstanding loan balances at a lower interest rate. From this, they hope to save approximately $500,000 in interest expense. In addition, the Harbor District Board is considering additional debt in the amount of $3.6 million to secure funding to begin addressing some of the capital improvements listed in Table IV. (3)Of the$3.0 million budgeted in FY 2012-13 for Oyster Point CIP,$2.0 million was appropriated for dock replacement. The South San Francisco Redevelopment Agency contributed$2.0 million,while the District contributed the remainder. Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 6 of 11 Table III Harbor District Loan Payments By Year (Rounded): Fiscal Year: Oyster Point: Pillar Point: Total by year: 15-16 $ 679,300 $ 713,800 $ 1,393,100 16-17 $ 679,300 $ 713,800 $ 1,393,100 17-18 $ 679,300 $ 713,800 $ 1,393,100 18-19 (Final Payments) $ 1,310,300 $ 1,376,900 $ 2,687,200 Total $ 3,348,200 $ 3,518,300 $ 6,866,500 III. Potential Organization Structure for City Management and Financial Implications of the Oyster Point Marina and Park The following are options that the City Council could consider, given the LAFCo recommendation that the District be dissolved: Option One: Keep the JPA in place for the term of the agreement, with the City continuing to work with the Harbor District to ensure the OPM continues to be operated and maintained consistent with the terms of the JPA (see letter from City Manager Futrell to Harbor District dated July 30, 2015, included as Attachment B). Option Two: Pursue early termination of the JPA. This is possible with mutual consent from the Harbor District Board and the City Council. The financial implications of discussed below. Option Three: Pursue LAFCo's recommendation and coordinate with the County on potential District dissolution following a reasonable time for the District to address identified improvements and operations. At the LAFCo meeting on July 15, 2015, the two LAFCo Commissioners who are also on the Board of Supervisors (Horsley and Tissier)indicated that they would like to give the District 12-18 months to make improvements to its operations and organization before considering dissolution. A. Reorganization of Oyster Point Marina and Park under the City of South San Francisco Parks and Recreation Department If the City were to take over management of the Oyster Point Marina and Park, one option is to create a new operating division within the Parks and Recreation Department, similar to how the County operates its Coyote Point facilities. The County operates the Marina portion of Coyote Point as a self-sustaining enterprise fund, while the parks/open space/public areas are operated as a regional park. A simplified organization structure for Parks and Recreation with the inclusion of the Oyster Point Marina is shown in Figure I11, below. Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 7 of 11 Figuire III City of South San Francisco Parks and Recreation Department Simplified Organizational Structure Director of Parks and Recreation '4��l Parks Manager I lRecreation Mana I Facilities Manager Harbormaster Parks Division Recreation Division Facilities Division Marina Division Assistant Harbormaster (Manage Parks portion of Oyster Deputy Harbormaster Point Marina) Lead Maintenance Worker Business Manager Administrative Assistant I Hourly Harbor Workers B. Potential Cost of the Oyster Point Marina and Park Under the City of South San Francisco Parks and Recreation Department The City of South San Francisco Parks and Recreation Department estimates they could operate and maintain Oyster Point Marina for approximately $3,327,305 as shown below. Personnel Cost(4) $ 1,509,305 Supplies and Services:Assume 15-16 Budget: $ 1,618,000 Annual Minor Maintenance Needs (5) $ 200,000 Total Budget, Operating and Ongoing Minor Maintenance $3,327,305 Of the $3.3 million in operating and ongoing minor maintenance budget shown above for the Oyster Point Marina and Park, City of South San Francisco staff estimate that $862,000 is attributable to park operations, and $2.5 million is attributable to marina operations. (4)Assumes current marina staffing,plus a Business Manager to better market and operate the marina. (5)$167,000 listed in the November 2014 Oyster Point Marina Condition survey;rounded up for conservative measure. Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 8 of I I C. Potential Capital Improvements Under the City of South San Francisco Parks and Recreation Department The San Mateo County Harbor District commissioned a study of capital and maintenance needs at Oyster Point Marina in November 2014, which concluded that $5.8 million in capital improvements and maintenance are needed. A summary of the study is below: Table I Pruerorrt �,� .., ...... �,� Repair projett lope 2 Gr2nd Uto rl Maintenance S7,705 95,700 9S,,460 166,105 Dock 1 17,000 $ 17,0W Dock 2 18,30,0 Dock , m�......� 27, ' c���� ��� 300 11 p�ryy gl� �^ ��yy��pp � p� A �.�' 5,7 Dock 01 ro w Master d �rbor a ter 7,7C X2,7() Maintenance 16,0=00 16,E Dock 1 $ 12100➢N 7 ,ODD Dock 8 ante 7 000 77,1p , �+1aarnt�ennra�rNre 4, 0�w �9 ;, �l R troctri 4 4,0 � . , 4, capital $ ,tl00 60" ,O $ 654,000 4,250,00 1, 0, 7.,730, Desk 14 35,0 1,07%000 1,105,0 am L,owrr Harbor Master 20„0'00 aintenance 15000 � 4 5,0W ..� Mama 1 _ '.....1,74,000 17 ,1 estroom 4 740000 240,000 80,000 vi—es—t Wren'-k+ eter 40,000 $ 00,E East 6reakwa er 75,0 � 75,000 T, , �.. �._ Grand!Total: 1,70i5, L� 74 �� ” 4 ,� 5,7 "_' ,a le 7:Repair Project Prioritized Coists D. Fire, Police and Public Works Impact Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 9 of 11 Assuming the City of South San Francisco takes over operations of Oyster Point Marina and Park, the South San Francisco Fire Chief reports there would not be a significant impact on the Fire Department. The Coast Guard has primary responsibility for patrol and search and rescue operations, thus there would be no change from the status quo. The South San Francisco Fire Department already provides search and rescue operations when initiated locally, or requested by the Coast Guard or Harbor District staff, and that would not change. The current Harbor Master has a boat to respond to emergencies during the work-day. There were a total of seven calls for service at Oyster Point Marina in 2014. Fire Department personnel already respond to fires on land, and medical calls in the harbor and on the bay, and that would not change if the City of South San Francisco assumed responsibility. The South San Francisco Police Chief believes his current staffing is adequate to handle any additional demand for police services. The South San Francisco Police Department already responds to calls for service at Oyster Point Marina and Park, and that would not change if the City took over responsibility. Parking enforcement issues would increase as the City of South San Francisco becomes responsible for parking on the site. The Director of Public Works does not anticipate any change in Public Works duties if the City assumed responsibility for Oyster Point Marina and Park. Public Works currently maintains striping, lighting, the pump station and sweeping at Oyster Point Marina and Park. E. Anticipated Revenues should the City of South San Francisco Assume Responsibility for Oyster Point Marina and Park Absent new revenue, the City of South San Francisco staff estimates a net deficit of $1.1 million for Oyster Point Marina operations alone. There may be opportunity to increase revenues at Oyster Point Marina. The City is consulting with Keyster Marston Associates, an expert in real estate economics and marina operations, to determine and understand what additional revenues could be gained from Oyster Point Marina operations to offset the deficit. For purposes of this study session, as an initial point of reference, staff from the City of South San Francisco has taken the current Oyster Point Marina budget and substituted the City's estimate of operating budget needs. The result is below, and shows an ongoing revenue gap of almost $1.1 million for marina operations and $862,000 for park operations, not including any capital improvement needs: Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARINA/PARK Page 10 of 11 Fable IN' Oyster Point Marina and Park Funding Gap under City Operations: Budgeted Revenues for 2015-16: $ 1,370,333 (From Table I) City Est. for Marina Operating Budget(excludes Parks) $ 2,465,216 Projected Net Deficit: $ (1,094,883) Parks Funding Gap will be 100% $ (862,000) Total Funding Gap by taking over Marina and Park $ (1,956,883) IV. Discussion Key points to consider should the City of South San Francisco assume responsibility for Oyster Point Marina and Park include: (1) The Harbor District is burdened with debt, is actively working to refinance outstanding loan balances, and is pursuing additional debt financing in the amount of$3.6 million. (2) The marina requires $5.5 million in capital improvements as noted in Table IV. (3) Absent the property tax subsidy, Oyster Point Marina and Park currently operates at a loss of$1.7 million. Early termination of the JPA is possible by joint consent of the South San Francisco City Council and the San Mateo County Harbor District; however, termination is not recommended unless these key points are satisfactorily addressed. Staff Report Subject: CONSIDERATIONS FOR OPERATIONS OF THE OYSTER POINT MARfNA/PARK Page 11 of 11 Approved: Jim Steele Mike Futrell Assistant City Manager City Manager Attachments: Attachment A: Joint Powers Authority (JPA) Agreement between the San Mateo County Harbor District and the City of South San Francisco, Dated July 6, 1977; First Agreement Amending JPA, Dated October 3, 1979 Second Agreement Amending JPA, Dated November 27, 1985 Third Agreement Amending JPA, Dated February 23, 2005 Attachment B: Letter from City Manager Futrell to Harbor District, Dated July 30, 2015 2515668.1 ATTACHMENT A JOINT POWERS AGREEMENT SAN MATEO COUNTY HARBOR DISTRICT AND CITY OF SOUTH SAN FRANCISCO The SAN MATED COUNTY HARBOR DISTRICT, a political subdivision of the State of California, hereinafter usually called "DISTRICT" , and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation, hereinafter called "CITY" , entered into a Joint Powers Agreement on July 6, 1977, which has been rescinded and the parties enter into this Joint Powers Agreement in lieu thereof. RECITALS 1. Each of the parties hereto is a public agency and authorized to enter into a Joint Powers Agreement pursuant to Title 1, Division 7, Chapter 5 of the Gov eri=ent Code of the State Of California (Section 6500 et seq. ) . 2 . DISTRICT is a political subdivision of the State . of California formed and existing pursuant to Division 8 , Part 3 of the State of California Harbors and Navigation Code, Section 6000 et seq. Said DISTRICT was created in 1.933 pursuant to the Harbors and Navigation Code and has the powers and duties prescribed by statute, including the power to acquire, own, operate and develop harbor and related facilities within CENTRAL Picoms 10/12/77 FILE its territorial boundaries. S . The CITY OF SOUTH SAN FRANCISCO is a public corporation created for municipal purposes pursuant to the terms and provisions of the General Law of the State of California , and has the power to do any work or make any improvements within or without the territorial limits of the CITY which are determined to be of general public benefit including construction and maintenance of parks and recreational marinas. CITY presently owns and operates a small boat marina at OYSTER POINT within the said CITY. 4. The territory of the CITY is included within the territory of the DISTRICT. 5. Each of the parties hereto has determined that it is in the best, interests of the people of said AGENCIES to repair and/or replace the existing, marina facilities at OYSTER POINT and expand said facilities as described in the agreement between CITY and the State of California Department of Navigation and Ocean Development (referred to herein as "DNOD") dated September 8, 1975 , the Proposed Master Plan ,and the Preliminary Engineer's estimate prepared by Daniel, Mann, Johnson & Mendenhall, a corporation, and including leachate control measures, preparation of the project -site for the Marina-Park landscaping, and other auxiliary shoreside support facilities. 6 . Each of the parties has determined further that it is in the best interests of the people of said AGENCIES to -2- permit the DISTRICT to rehabilitate, manage, maintain and operate the existing marina at OYSTER POINT and construct, manage, maintain and operate the future marina to be developed at OYSTER POINT subject to the terms and provisions hereof. NOW, THEREFORE , IT IS HEREBY MUTUALLY AGREED AS FOLLOWS 1. This Joint Powers Agreement shall be effective as of 12: 01 A. M. , November, 11, 1977 . 2 . PURPOSE OF AGREEMENT The purpose of this Agreement is to authorize and empower. the DISTRICT and CITY to jointly develop and construct facilities at OYSTER POINT MARINA/PARK as outlined and in accord with the Master Development "plan (Exhibit 1) which I' s made a part of th4a Agreement and to authorize and empower the DISTRICT to manage, operate and maintain the existing and future OYSTER POINT i4ARINA/PARK. 3 . PROJECT DESCRIPTION Said project shall consist bf the construction of the OYSTER POINT MARINA/PARK as outlined in Exhibit "21' of this Agreement and the operation, management and maintenance of the existing and future MARINA/PARK. 4. POLICY BOARD To facilitate the accomplishment of the purposes of this Agreement, there shall be formed the OYSTER POINT MARINA/PARX POLICY BOARD, consisting of two (2) members who shall be Council Members from the City of South San Francisco, appointed by said Council and two (2) members who shall be HARBOR COMMISSIONERS , -3- appointed by the BOARD OF HAR30R COMMISSIONERS each to serve a term of four years or until a successor is appointed. Said four members shall select a fifth member who shall serve a term of four years or until a successor is appointed, who shall represent the public and who shall be a resident of San Mateo County but not an elected or appointed member of the governing board of any governmental agency or employee of any governmental agency. In selecting the public member, in addition to other matters deemed relevant, the said four members shall evaluate each applicant' s business experience, interest in taxpayers ' concern regarding management and use of public funds, interest in the Marina and other water-related development of the San Mateo County area, reputation in the community, and ability to represent the public. If an evaluation of an applicant, who is a resident of South San Francisco, equals or exceeds evaluation for applicants from other areas of San Mateo County, the appli- cant from South San Francisco shall have first priority for selection; Members of the said POLICY BOARD "shall serve without compensation, but shall be reimbursed actual and necessary expenses from the revenues from said MARINA/PARK project. Said BOARD shall have responsibility for making recommendations - to the CITY COUNCIL and HARBOR COMMISSION on all matters of policy relating to the construction, operation, management and maintenance of the OYSTER POINT MARINA/PARK, and such other -4- powers as are specfically delegated to the Board. The chief administrative officer, the attorney and engineer of the DISTRICT shall serve as staff to the POLICY BOARD on all matters involving the DISTRICT'S responsibility and the chief administrative officer, the attorney and engineer of the CITY shall serve as staff to the BOARD on all matters involving the CITY'S responsibility. Compensation for each staff person shall be the responsibility of the primary employer of said person but such salary shall be considered as part of the expenses of the AGENCY incurred for maintenance and operation to be reimbursed from operating -revenues pursuant to Paragraph 12 hereof. 5 . RESPONSIBILITIES AND AUTHORITY OF DISTRICT The DISTRICT. and the CITY desire to cooperate in all matters involving the said project for the purpose of developing the most feasible project and.. providing the greatest possible benefit for the users thereof at reasonable charges. However , pursuant to this Agreement, ultimate financial responsibility rests with the HARBOR DISTRICT and for this reason, if there is disagreement between the CITY, the BOARD and the DISTRICT as to the manner in which the project will be constructed, managed, maintained or operated, the final decision as to said matters shall be made by the BOARD OF HARBOR COMMISSIONERS of the SAN MATEO COUNTY HARBOR DISTRICT. 6. METHOD BY WHICH CONSTRUCTION PHASES OF THE PROJECT WILL BE ACCOMPLISHED (a) Plans and Specifications : The project may be constructed in three initial phases as set forth in Exhibits 3 , 4 and 5 attached hereto. The DISTRICT shall promptly contract with Daniel, Mann,, Johnson & Mendenhall, a corporation, (referred to as ODMJX" ) for prepara- tion of proposed project plans and specifications , said contract to be substantially similar to the Agreement dated June 15, 1977 , between CITY and DMJM entitled "An Agreement With Daniel, Mann, Johnson & Mendenhall, a corporation, For Consulting Services Related to OYSTER POINT MARINA/PARK" and task Order Proposed Design - OPM Park Phases 1 and 2 DMJM B #6213-1-4 . Plans and specifications for the proposed project shall be prepared under the supervision and direction of the DISTRICT and paid for by DISTRICT from DISTRICT funds or loan funds received from DNOD. Upon completion of said plans and specifications , the same shall be reviewed by the POLICY BOARD which shall make recommendations relating thereto and shall thereafter be reviewed and approved by the B-CLARD OF HARBOR COMMISSIONERS OF THE HARBOR DISTRICT and the CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO. (b) Award of Contract": Upon review and approval of said plans and specifications by the POLICY BOARD and the governing bodies of each of said agencies, subject to Paragraph 6 (a) above, the DISTRICT shall call for competitive bids . Said bids shall be reviewed by the POLICY BOARD which shall make recommendations concerning the bid award. The contract shall be awarded by the District to the lowest responsible bidder giving due considera- tion to the recommendations of the POLICY BOARD. (c�) Construction: Construction of said work of improvement shall be under the supervision and direction of the District. The engineers of the DISTRICT shall consult with engineers for the CITY during the construction process. The engineers of the CITY shall have access to the construction site, the power to inspect the same during the course of construction, and upon request shall be furnished all Plans and sneq:.Lf_icntJon.q prepared by the DISTRICT for their review and comment. (d) P�ect Site: The said project shall be constructed partially on lands owned in fee by the CITY and partially on tidelands and submerged lands and nothing set forth herein shall be construed as vesting any ownership in any of said lands in the HARBOR DISTRICT. 7 . METHOD BY WHICH MAINTENANCE AND OPERATION PHASES OF THE PROJECT WILL BE ACCOMPLISHED (a) DISTRICT' shall assume control over the existing operations at OYSTEP, POINT MARINA on the effective date of this Agreement and shall thereafter and during the term of this Agreement be responsible for management, maintenance and operation of the existing and future OYSTER POINT MARINA/PARK -7- subject to and in accord with the terms and provisions of this Agreement. (b) City _Employees.- All employees of the CITY presently employed in the maintenance and operation of existing facilities at OYSTER POINT shall retain their existing positions. for a period of twelve (12) months at their present salary levels and with existing benefits as employees of the CITY and the DISTRICT agrees to reimburse the CITY for costs of salaries and fringe benefits for said employees . After said period the said employees may become employees of the DISTRICT upon mutual consent of the said employees and the DISTRICT. While said employees are working at said MARINA under the supervision and direction of the DISTRICT but as employees of the CITY, the DISTRICT shall have full control over their activities, including the assignment of functions and responsibilities. In the event that said employees fail to perform their services and duties adequately and in accord with personnel requirements of the CITY, said employees may be discharged in accordance with the personnel rules and procedures of the CITY at the request of the DISTRICT and upon approval of the PCIICY BOARD. (c) Municipal. Services : CITY shall provide municipal services for the OYSTER POINT MARINA/DARK facility as hereinafter set forth. Unless payment for said services to the CITY are made by lessees or specified as being at CITY'S expense, the CITY shall enter into a written agreement establishing the level of services to be provided by the CITY and the cost thereof so that proper budgetary provisions can be made . Services to be provided by the CITY shall be as follows -. (i) Sewer and water - all sewer and water services as defined in Exhibit 2, including sewer lines , interceptor lines , lift, stations and water mains of a size sufficient to meet fire flow and service demands necessary to service the project shall be the responsibility of the DISTRICT as part of the construction cost.. CITY shall rod out the main sewer Lines as required, maintain the pump station and rod out -he 'laterals frow, 1:1,Aa main to or .Les!e' s cleanouts and be reimbursed by District for cost thereof, except that DISTRICT may elect to otherwise provide for said service without incurring costs,to City. All lessees of facilities on the project site shall be required to pay the sewer and other public utility fees including connection charges as provided from time to time by City ordinances for property owners within the CITY or by the Public Utilities Commission. (ii) Police Patrol CITY will provide police patrol, traffic, detective and specialized juvenile police services at the level of services rendered within the CITY at CITY 'S expense and without reimbursement, and CITY and DISTRICT shall negotiate regarding the cost of any additional services .which shall be reimbursed to the CITY. -9- (iii) Fire Protection - CITY shall at its sole cost , and expense provide fire protection at the project site on the same basis as said protection is furnished to other property owners within the CITY at CITYI:S expense and without reimbursement and CITY and DISTRICT shall negotiate regarding the cost for any additional services which shall be reimbursed to the CITY. (iv) Street Sweeping - Street sweeping shall be provided on a regular basis for all streets and public parking areas 'within the project, excluding parking areas held by private leasehold interests. (v) Refuse Containers - South San, Francisco Scavenger Company refuse containers shall be, located and serviced to control litter and public refuse needs at all improved public parking areas, parks, and other public owned use areas at DISTRICT' S . cost and expense. Said refuse collection.- services will be provided to the lessees at the project. site in accordance with CITY ordinances . (d) Maintenance of Park, Pathways, -and Appurtenant Improvements - DISTRICT shall maintain at its cost and expense the. project' s park, pathways and appurtenant improvements as shown on Exhibit I attached hereto and DISTRICT may contract . with the CITY for said services reimbursing CITY -therefor or otherwise provide for said maintenance service. The DISTRICT may and to the, greatest extent possible shall require maintenance of parks, pathways and appurtenant impro.vements by parcel lessees . . ... .. I ..... ....... 8. =Ty IS: ZONING AND ''EIRMIfi POWERS Nothing herein shall be construed as affecting the CITY'S power to .zone the area occupied by the project or as relieving any lessee of the obligation to obtain necessary building permits provided, however, the CITY agrees to adopt/'or maintain zoning ordinances authorizing development in accordance with the plans for the proposed project. 9: LEASES DISTRICT may 'lease all or any portion of the existing marina, the lands within the project site or the project a8 , �4,A to rl velopL rs suhj ect to the approval by the POLICY BOARD. and DNCD and may execute said leases on behalf of the parties, hereto. The revenues from any such lease or leases shall be considered as operating revenues. 10 . ' ACCOUNTING RECORDS, (a) DISTRICT shall maintain account boobs and financial records to show the revenues and expenses of the MARINA/PARK. Said records shall prorate expenses of the DISTRICT where said expenses are attributable in pant to other DISTRICT functions. Said prorations shall be subject to review by the POLICY BOARD. (b) CITY shall maintain account books and records to show the expenses to the CITY for providing municipal services to said project. Said records shall prorate expenses where said expenses are attributable in part to other CITY functions. Said prorations shall be subject to review by the POLICY BOARD. (c) DISTRICT shall render a semi-annual report concerning financial affairs of the MARINA/PARK. 11. INSURANCE DISTRICT shall maintain minimum insurance required by DNOD in accord with the agreement with said Agency and such other insurance as may be considered necessary in amounts determined after review by the POLICY BOARD. Said policies shall name the parties hereto as insured parties. Proceeds from any fire insurance policy shall be disbursed in accord with the. agreems=nt with DNOD or used for re(--onst=qtion of the destroyed facility. 12 . DIVISION OF REVENUE (a) Operating revenues received from the OYSTER POINT MARINA/PARK shall be used to repay loans from DNOD including the existing1bans-, to the CITY and the expenses and costs of management, operation and maintenance of the project® (b) Operating revenues in excess of those required for debt service and operating costs and expenses as provided above shall be held in a reserve account subject to the terms and provisions of the loan agreement with DNOD. After satisfaction of the loan agreement with DNOD, and during the term of said' agreement,with DNOD' consent, said excess funds shall be held or disbursed as follows: -12- (1) The POLICY BOARD shall establish a reasonable aep,g:e,cjatibn.% schedule for the various elements of the project and a portion of such e--.cess funds shall be deposited in an account with a financial institution or invested in approved and authorized investments to be used as needed to meet the cost of replacement in accordance with the said depreciation schedule. Any income or profits from said fund or investments shall be added thereto. 'The: maximum reserve to be so main- tained shall be determined by the parties hereto, subject to the recon=endations of the POLICY BOARD. (2) The CITY shall . be paid the sum of $215 , 000 . 00 (the amount of the CITY'S investment in the existing marina from . the CITY' S general fund) less the amount to be paid CITY for persona! property pursuaxit to paragraph 15 . The DISTRICT shall be paid (a) the amount of the DISTRICT'S capital investment in the completed project, (b) $25, 000 . 00 . which was advanced, to the CITY for planning purposes, (c) the amount paid to CITY for personal property pursuant to paragraph 15 , and (d) sums advanced by the DISTRICT during the term of this Agreement from its general fund for loan service fees or maintenance and operation. A schedule for repayment of said items shall be developed by the POLICY BOARD subject to modification from time to time. (3) Any excess funds remaining shall be divided equally' between the parties hereto. 13. RESPONSIBILITY FOR LOAN REPAYMENT HOLD HARMLESS CLAUSE txcept as expressly provided herein, the CITY shall not be rG_�r;,pon,­,ible . for any of the expenses relating to the OYSTER POINT MA-AINL/PARK and specifically CITY shall not be responsible for the following : (1) costs of construction, including plans, specifications, engineering; (2) economic studies incurred hereafter; (3) repayment of the existing leans incurred by CITY for construction of the existing marina at OYSTER POINT; (4) any loans incurred for future developments at said site in accord with the Exhibits attached hereto , or (5) for any costs of operation and maintenance except as expressly provided, herein. In the event operating revenues are not sufficient to service said loans or pay costs of operation and maintenance, the DISTRICT shall assume responsibility for and make all payments due thereon and shall hold CITY ha=les from any liability for said loans or costs of maintenance and operation. 14. FINANCING if CITY requests, and the Department of Navigation and ocean De,.rei ---ent cry consents; th he loan for construction of the existing marina and the loan granted by DNOD pursuant to the Agreement of September 8., 1975, shall he assumed by the DISTRICT and the CITY shall be released as obligor on said loan. The HARBOR DISTRICT shall assume responsibility for obtaining additional loans or' grants for marina expansion and rehabilitation of the existing marina and CITY shall be responsible for obtaining additional loans and grants from Land and Water Conservation funds for park area development and the Department of Fish and Game for the fishing pier and appurtenant works , or assist DISTRICT in obtaining said loans or grants. Each of the parties hereto shall use diligent efforts to develop additional sources of loans or grants. 15. TRANSFER OF ASSETS on the effective date of this Agreement, CITY shall provide -14- to the DISTRICT an inventory of personal property owned by the CITY and used in conjunction with the operation of the existing marina with the CITY'S estimate of the present value of said property. DISTRICT shall purchase said items of property from the CITY for said price and shall pay to the CITY said purchase price within thirty (30) days after the effective date of this Agreement. 16. FUTURE DEVELOPMENT - CONTINGENCIES (a) Adequate Funds The parties hereto have determined that Phases I and IT of the project (Exhibits 3 and 4 attached) will be financed by DNOD loans, grants from Land and Water Conservation funds for park area development and the Department of Fish and Game for the fishing pier and appurtenant works and the advance of sums up to $700 , 00600 by the DISTRICT. If the cost of construction of Phases I and 11 as shown by construction bids exceeds said loans and grants and advance from the DISTRICT, the parties hereto shall pursue one or more of the following alternatives'. (1) obtain additional funds from DNOD, private developers or sources other than the general fund of the CITY OF SOUTH SAN FRANCISCO; (2) additional-conttibutions--.-of_ .HARBOR DISTRICT funds; or (3) modify the project, said. modifications to be subject to agreement of the parties . in addition , DISTRICT shall immediately proceed with Phase I plus the parking lot improvements, and commence construc- tion thereof on or before June 1, 1978 ; schedule the construction of Phase II in a timely manner when the cost thereof is within the funds to be provided and assume responsibility for maintenance and operation of the existing marina and proceed with rehabilita- tion thereof in accordance with Phase Ill . (b) Available Lands : The parties contemplate that the project shall be constructed partially an tidelands and submerged lands granted to the City in trust by the State of California . If it should be determined for any reason that the project or any portion thereof' cannot be constructed on said tidelands and submerged lands , DISTRICT shall have no responsibility for proceeding with said portions of the project. Each of the parties hereto will use diligent efforts to resolve any problem which might interfere with full use of the tidelands and submerged lands included within the project site., Cc) Leachate Problem: CITY has been ordered by the Superior Court of the City and County of San Francisco (Action No. 633084) to comply with provisions for protection of water quality resulting from leachate discharge at the project site. The project includes improvements to resolve the .said problem which -shall be a project construction cost, and the repair and maintenance thereof shall be charged against project revenues. However, if the proposed leachate improvement work does not meet the standards imposed by appropriate governmental agencies , and said standards require improvement work beyond the scope of the proposed project leachate work, CITY shall undertake required 7) additional work atthe�-earliest possible time . If any or all said additional required work by nature thereof qualifies for additional DNOD funds or grants from other agencies , DISTRICT and CITY shall use diligent efforts to obtain said funds . 17 . LIABILITY The HARBOR DISTRICT,- its officers , agents and employees shall not be deemed to assume any liability for the negligence of the CITY or its agents, officers , or employees , and the CITY shall not be deemed to assume any responsibility for the negligence of the DISTRICT or its agents, officers -and employees, and CITY shall hold the HARBOR DISTRICT, its officers , agents and employees harmless from any and all liabil resulting from any of the actions of the CITY or its officers and employees, and the DISTRICT shall hold I its officers, agents and employees harmless from any liability resulting from any of the actions of the D its agents, officers and employees . Each of the par shall defend the other against any claim for damages from its actions. 18 . SEPARATE AGENCY No separate agency is considered necessary or desirable to administer this Agreement except as herein provided. 19 . TERM OF' AGREEMEXT-= ' This Agreement shall remain in full force and effect for a period of forty-nine (49) years from the effective date as 7�7 -17- specified above or until modified or terminated by an agreement in writing by the parties., 20. PROCEDURES UPON TERMINATION OF AGREEMENT Upon termination of this Agreement,unless otherwise agreed by the parties , responsibilities for management, operation and maintenance of the project shall revert to said CITY and DISTRICT shall be relieved of any and all responsibilities relating thereto. All assets at the project site paid for from operating revenue shall become the property of the CITY. CITY shall succeed to the depreciation reserve fund which. shall be held in trust and used only for capital replacements. Any excess funds shall be divided in- accordance with the terms and provi- sions of Paragraph 12. Employees of the DISTRICT working at said project shall retain their positions as they exist at said time for a period of twelve (12) months at their then existing salary levels and with existing benefits as employees. of the DISTRICT and the CITY will reimburse the DISTRICT for costs of salaries and fringe benefits for said employees. After said period the said employees may become employees of the CITY upon mutual consent of the said employees and the CITY. While said employees are working at said marina under the supervision and direction of the CITY, but as employees of the DISTRICT, the CITY shall have full control over their activities including the assignment of functions and responsibilities . in the event that said employees fail to perform their services and duties adequately and in accord with personnel requirements of the DISTRICT, said employees may he discharged in accordance with personnel rules and procedures of the DISTRICT at the request of the CITY. 21. SUCCESSION IN INTEREST In the event the HARBOR DISTRICT is dissolved or ceases to exist, the DISTRICT agrees to place in trust for the OYSTER POINT MARINA/PARK construction project, prior to dissolution, the amount of funds necessary to complete Phases I and 11 of the ,,1 /A project above the available loans and grants not to exceed the sum, of $700, 000. 00. CITY agrees that any such funds placed in trust shall be expended only for the development of the project 22. BINDING ON SUCCESSORS The parties hereto intend that this Agreement shall be binding upon the successors in interest of either of the parties hereto. EXECUTED IN TRIPLICATE: SIGNED: October 1977 CITY OF SOUTH SAN FRANCISCO /14 By: ATTEST: SIGNED: October 2 1977 SAN MATEO, COUNTY HARBOR DISTRIC By: 4/12/77 COYSI'SR €OI2 T i,L%. !',I A PRELT.MINNARY E GINSER IS SSTI;=ME k'LNS G I 1. Dredging I. ' dew.B.asin 44,124 CY S.00 -- $220,620, 2. Existing Basin --- Cy±5 5.00 - -_ - $220,6007 10% Contngenc:,es _ 22,000 . Total ' 242,6M 2. Leachate Control a. Mole ;%rea Y 1.. •Remove exist. rip-rap 2,100 C'r Cl � 2.25 . � e, �,725 2." Remove sand 500 CY 2.2S - - 1,,125 3. Excavate slopes 3 ft dispose off-site 9,800 CY G 3.75 = 36,750 4 m Excavate -top 1 ft. 2,4:00 CY° 2.00 = 4.7'800 S. Place 1.45 mil, hypa.lon' 152,100 SP G 0.75 »- 114,075 6. Backfill slopes with dredge spoil ,800 CY @ 1.25 - 12,250 7. Backfill. tap with . clayey airpoxt (31) 7,200 CY 9 4.00 28,80D Sub-total $202,525_ - b Soiith: Shore 1.® Clear slope 0.0 Ac G $2,500 2,250 2_ Remove, stockpile existing ripra.p 1,250 CY 0 2.25 2,810 ' Excavate 4 ft. trench, _ . dispose of off-site 44D* CY 3_75 . 4.. place 145 roil hypalon' 40,000 SP' 0 0.75. 30,000 5. Cover with 2 ft. of dredcre spoil 2,960 CY 0 1.25 � 3,700 S - toi c Pile Area 1. Excavate 3 ft. 'trench and dispose ofl--sate 60 CY 2 $ 3.75 -- 22S 2,. Cut off wood piles 40 ea 0 75.00 = 3,000 3. 6" hento ite slurry 14 CY 0 40.00 = 560 4_ Backfil l dr'ed;e spoil 60 CY 0 1.25 = 75 Sca-total 3,860 4/12/77 d. Channel Area 1. Excavatc•6 ft. trench, dispose off-.site. 670 CY 0 3.75 2- Sackfi.l l with dredge . spoil . 670 CY` 0 1,25 _ '840 3. Chrannel (50 ft.) block off, exc- 4 ft. trench, " dispose off-sits: 220 CY 0 7.76 1.,70 C7 4. Back fill-A ith import , Clay. fill 220 CY 0 4.00 S.- 10 n,it iris queen 7,000 SF 0 0.20 _ - 1,400 Sub-total - • - 7,333 Sub-total Leachate Control $254,128 1D 6 -Contingencies . .+ • 25,413 ota-1 , 2797500 3. Clay Cap Seal a. Site Seal 1. Clearirr, 34 Ac 0 250 condition and compact 44,000.4CY 0 2.50 - 110, 000 - 3. Imported clayey fall cap (108,800 less-dredge Spoil) 78,000 CY 0 4'.00 = •31.2,O00 4. Filter cloth" (streets, parkin,, storage) 743,700 SF 0.20 1-48,740 -� Sash--total � $579,.240 b.. Slope -Stabiliza-tion South Shore 1 .. Excavate, exisi. fill 22,400. CY.; 0, 1.80 _ •22,320 , 2.: Dispose 70% off-site 8, 400 CY 0 2.50 _ � 12>'600 _ 3- Replace, compact 30%. 4, 000 CY'@ -- 1.20 = 4,800 4. Place conditioned dxedue s-Doi.l 9,300 CY E 2.25 20,92 Snub-total $ 60, 645 c, 1-1--thane Gas Central 1 . Flare pipes . 60 ea 325 — 19,S00 Sub--total Clay Cap Seal $671,995 10% Contingencies 67, 199 Total 739,200 ' -2- 4112177 4 m Earthwork a. Stare Area 1. Excavate 1 ft, dispose: off-site 2,180 CY' @ :5.25 - 7,08S 2. Extra depth, 3 ft., cla), Gap over store area 6,S00 C, 3,00 10,500 3. Surcharge stare area with topsail - 3 months - doubly: 4 handling cost only. 21,200 CY 0 1.2S . = 26,500 _ Sub-total 53,085 b. parking Areas and Street Areas _. .1. Extra. fill. - Streets - 1,400 CY cR ft ; parking 6,200 _ 1,,600 CY 0 $ 3,.00 -- 22,800 - . Contingencies .7, 580 Total. ,s `. .. . Revetnent a.. Mole Area 1. Filter cloth 55,000 SF 0 $ 0.20- _ $ :L1,000 2,,N 18" coarse gravel, 3,100 CY 0 7.50 = 23,.250} 3.. 25-300 lb. stone _ - - ::From :stoFkp le 2,000 CY C 2'®25 ,-SOO - sub--total . 38,750 , b- East End' 1. Filter cloth 37,800 SF 0 $ 0.20 _ $ 7,560. 2- 1211 coarse gravel. 1,400 CY @ 7.5D � 10,500 3. Place heavy stockpiled - _ riprap 2,800 CY 0 2:2S = 6,3001 Sub-total $ 24.,.350 c. South Shore 1. filter cloth 33,000 SF 0 $ 0.20 = $ 7,600 2. 1211 coarse gravel .11400 C",° C 7.Y) = 10;50D 3. Import. 2S-1100 lb.- rip-rap 2,100 CY 0 25.00 _ 52,500 sub-total _ 70,600 d. North Shore - New Basin 1. Re-.-ove and stockpile existing ripra.p 930 CY 0 $ 2.25 - $ 1,870 2. 811 coarse ,gravel 2,010 CYIQ 7.50, -- 1S,075 Sixb--to".Z. $ 16,945 sub--tca al 10", Contin cnc; 15, 050 7. 4/12/77 _ Breakwater Phase I New Basin hem I. ' Cast end, 12" precast x 741 x 600 LF sheet Piling, and bond bears 44,400 SF @ $ 6.00 = $266,400 2, 1211 batter Piles 1,900 LF 0 7.50 = 14,100 3. LN rth line 12111 x 7411 �c 1400 LF) 103,600.SP @ .. 6.00 " 621,600 - 5ub-total • - 902,100 M. 10% Contingencies - 90,210- "1 otal• 992a,300 7. Fxisti-nrr Br6a'.kw .tier Continp acy Iters - s_ Berthing _ New Basin I llal aays ' 24,640 5F •° - Slips2,55C! - Knee.br;ices • ,04 8 73;238 Si 0 18'.00 $1, 318'234 (Ixzcle clas Utilities, flock - boxes; iroacl barths) 9. Piers and Cates 1: Pi er,s 5' ea. 0- 1:2,000 : . 60;00C!: .- 2� Gates I5,000 - - _: -Silb=total.. $ 75,000 sow—M Ctsrst .r!gancie 7500 Total 82,500 I0. Paving _ Streets 1 . 8'1: ;%.B. 400 LF x 36' = 172,800 F ti $ 0.30 = 51,8'40 2. 4" A.B. 4800 LF- x.'24 1 I1S,20D SF 0 0..20 - 23,040 3. 211 A.C. 4800 LF x 24? = 115,200 SF 0 0.40 = 46,080 4_ H srt ornas ter 9,20C) SF g 0.90 = 8,290 $129,2-40 _4r . p 4/12177 Paving (continued) b. Park,inc, 1. 8" A.B. e O.30 5F - Ar=or coat G 0.20 .. O.50 113,400 SF G y 0.50 � 55,7Ofl Sub--total Parking $185,940 10% Contingencies 18,560 Total 2040.500 11. utilities a Power and "Telephone Cundergro d} 1. PG&E primary 2,400 LF 0 t14.00: = 33,600 . 2_ Secondary feeders with conductor 3,200 LF 0 9.50 -- 3D;4C3O 5. Trench:Lng and backfill 2,400 LF 3,00 0O 7,200 4. Substation Cserce° _ discoruaect) 1 ea. 0 6O00O0 = 60,000 _ 5. Concrete pad 1 ea 0 _ 1,000 = .1-3000 G. Main and meter panel 1 ea G 15,000 = 15,000 7- Distr lira ti-on Panel I ° C �� a v,�;?� � C,vvv _ 8- Te Toraxr Service PGtH 0 2,000 = 2,000 9. PT&T cabling 2,400 LF 9 7.50 , 18,000? . 10.. Substructures (boxes, etc) 20 ea 0 200 4,.000 lip Miscellaneous Lug Suva: 18,000 12. 75 KTA trans armer� _ with Pa4 5 ea. 0 2,500 = 12,500 13.' 150 "V . transformer 1 ea. U. 7,000 7,000 Sub—total $216,700 . . - 14 less (1) (3) C4) 100'800 7. _ $11.5,,900 b. Sanitaxy ae qer 1 . 41' Force Main Cpe) 1,900.LF @ $12.00 = 22,800 2. 61' C avity Main Cpa) 180 LF 0 15.04 = 2,700 S. Ma.ruliole 1 ea 0 , 700 = 700 4 . 41' lateral 40 LF 0 12.00 = 480 S . Lift Station 93 C2 - 1/4bp) 1 ea. e ,000 = 9,000 6. Lift.. Station r"4 (2 _ 1✓h1 p) 1 ea 0 12,000 = 1.2°,000 7. Lift. Station fV 5 (2 - 1'` p) I ea 0 12,000 12,000 8 . Boat pu;nip out 1 ea 0 3,000 v .3,000 Sub-total. 62,680 ' c. Gas / 'No,e I kL .I I a�':ti�t1C ENGTI,F. RIS L'01,%TE - MkSH I 'continua 5-1-I 4/12,177 d. Water -System I. Cal--eater (3, 700 gpm) 1 . 121' main. (ACP pipe)' 3,1 00 LF 0 $26.00 80,6070 2..- 811 main l e; ,� � 2,430 LF @ .16.00 - 38,SSG 3. 1211 gate Valves 4 ea. 0 1,500 6,000 4. Hydrants 9 ea 0 12200 - 10,800 5. 411, ]peter and assembly I ea 2,000 - 2,000 6. 814 gate value +4 ea. 0 400 1,600 7. Replace existing paving 720 SF 0 2.00 _ 1,440 S. 411 fare main to pier 60 LF 0' '.9.00 - 540 ` 3i2 91 tR .11 13 310 IF 9 8.00 2,480 10 '4.'i ate valve 1 ea 0 ZO? -= 200 11. E ,gate valve $ ea 1 150 - 600 12. Speezal cover aver. . 1211 and 811 5,530 LF 0 2;.010 -- 11,060 Sab_tatal , 156,200 II. . Marina System 13. 311 service SO LF 0 $ 8.OD 4041 14. 2" servace� 510 LF 0 6.00 -- 3,060 15. 311 valves and box 1 Ca 0 150' = ISO 16 '. 211 valves and box 5 ea_ e 100 = SV00. 17.. 3/411 service 2 ea 0 20D = 400 18. 4," main (ACP) 1,200 LF 0 91.00 = 10,80.'D'► 19... ,441 ,gate valves . 3 ea. 0 200 = 50C� Sub-total; $ 15,910- _ Total Water $-1-72 100 - . tilities 'S u b-total $350,740 _. ..�.. .., ...- 10% Conti.nge cie ' - 3S,100 - Total $ 385,80 12 Drainage 1. Paved swa les (311 AC x 61. width) .2,000 LF Q $ 6.00 - $ 12,000 2. Misc. structures 5 ea. 0 600 = 3,0:00 Sam-total. $ 15,000 10% Contingeacies . 1,500 `Qtal $ 16,500 P',`_ .MNARY ENGINEER'S _ lVtLATE PIL-%SE �I caaxtia_.u.ed 6213--1-Z 4112177 13. Pro evade 1 _ Surfacing 26,900 SF 0 $ 1.00 _ $ '215,900 2. Reds ood Header 2,640 LF 0 2.50 _ 6,600 Sub-total 33,500 10", Contingencies 3,300 Total 35,,C00. 14. Lii-h t nom; a. Streets Electrol iers 19 ea. e $1,000 -- 19,On 2. 211 conduit and condo--tor 2,090 LF 0 6.00 = 112,540 • ► v . 31,540 b- ark ng R 1 , Electrollcis 5 ea 0 $12000 -- S,000 2. 2" con' duit_s_ 880 LF 0 6.00 13P280 C_ pxC meliade pest-top _ electroliers at 1. .Elect rliers 14f ea 0 $00 _ 7, 000 2. 211 conduit and wire 1,340 LF 0° 6.0+0 _.. 8,040 1S,040 Sub--tota.1 Lighting 59,860 10% Contingencles 5,940 Total ,. $ ..°55.,800 " 15. Landscaping 1. Topsoil. "aver• Aredge spoil, area (9 .15 ac x 11 x 1613) 15,300 CY. 0 6.00 = $ 91,500 ° 2. Eydronrulch (clay cap area 1 ncludiig top- soil area) 24 Ac ` 1,0+00 _ 24,000 3. Fromanade area (full treatment) 1.S Ac 030,000 _ 45,0+00 4. Restaurant/Shops area 4.1 Ac ` 30,000 = 123, 000 Sub-total $283,800 10% Contingencies 28,.350 . Total $ 312,200 PLIdiw�: Y iG'k�;SSf �SST��L'aTS Pp1SS ce:auirat� d _ 2da- �Z 4/12/77 16. P s trCara�tS 1, Two required 2 ea- $SCE Obo 60,000 10% contingencies 6 00Q "dotal 66,ClC} (Note: One may e funded day fishing pier, or launch ramp grants, etc. 27. liarbormaster a 2-Story structure Lump Su � 6C7T 60,odo Total 66'000 v 8. .-D--y Starave µ = 1.18 Acres - 1. . 8°* AsBm rawer clay cap - 1•.18 x 43,560 - T 51,4.po_SP 0 G.Sg = _ 25,700. . 2. Peri=at -r fence 2,X00',LP' @ 6.0G = 15,600- S,60 0 . 41,300 b. 1.82 acres 8rr A.R. 79,,290 SP 6 �1. tfi — � 23,800 21.. Perimeter fence 3,000 L"F 0 6.00 — 18,000 Suh=tcatal 83,100 - 10 a Corit ngencies 8,310 Total.1. 91,400 (1977 Prices) 6213-1-1 4/12177 OYSTER POINT L%MIN KUNSE T1 1. Dredging none 2_ Leachate j none . r 3. Demolition and removals - l0 Misc. structures and -roadway Lunn Sum - 10,000 10% Contingencies- 1,04(3 _ Total ? 11,040 - 4-. Earthwork 1. Irzpo t fill - parking area 9,600 Cy ? 4.00 - .' ,38,400 T - 10% Con.t. ncrencles 3,840 -Total 42,250 S. Revetment - 1 . forth share - exist. basin - 8 11 coarse gravel 2,600 CY 0 $ 7..50 19,5010 - 10 Cantingencies 1,900 Total .. 21.�400 6. Breakwater Remedial' wo r: as required contingency :%L tees 0 , 7. Ber hing (Phase 1i) Repairs a contingency item 0 . Piers, and gates tPhase 11) _ °- 2.. Streets 1., S" A.D. 920 LF x 36 = 33,120 SF 0 0,30 = $ 9,900 2. 41" A.B. 920 LF x 24 = 22,fi180 SF C 0.20 = 4,4[10 3. 2.1' A.C. ,920 LF x 24 = 22,034 5F C 0..?75 = 8,230 4. Demolish exist. road at beach 600 LF x 30 _ 15,040 SF a 0.50 = 9,000 $ 31,580 b. Parkin- 90,000 SG 4 0.6.75 '_ 60,750 Sco-total 10J Contingencies 9,333 Totf..3 PFELD-'f E;;:ARY ENGINEER'S E_ _ l'-L4"E - Pit-kSE I I continu d 2 4/12/77 10. Uti E:% �LXILA E - PiL15E II cantj uec 4/121'7? 11 , Dra.inaa„e 1 paved. swa.le 2,000 LF 0 $ 6 e 00 = 12,000 2. Misc. structures 6 ea 0 500 = 3, 000 Sub-total 15,00'0 10% Contingencies 1,500 Total 16,500 12. Promenade '1.- Paving 28,400 5F 0 28,40D 2. Redwood header 2>000 LF 0 2.50 -- S,000 Sub-total 33,400 10% Contingencies Total 36,700 13. Lighting aw Streets 1. El ctraliers 0 11C9 fit. 6 ea 0 $1,000 = 6,000 2. 21' conduit and conductor 660 LF 0 6.00 = 3,960 9,96.0 1. .Electrolicrs S ea 0 $1,000 = $ 5,000 2. 211 conduit 5 50 LF 0 6.00 = 3,300 8,300 c- Promenade and Beams 11 Electroliers 1500/"80¢ 19 &a G $ S00 = 9,500 - r 2. Conduit , 1,500 a 0 6.00 4 9,000 Sub--total bighting $ 36, 800 10 Contingencies . a 3, 700 _.. Total 1 , Landscaping 1. Promenade area 0.5 Ac. C✓ .$,50,OGO - $ 15,000 2. Beach sand 5,000 CSC 0 9.00 - 45,000 Sub-tcr ta 1 $ 60,000 10% Continge7cie.s 6,0120 Total $ 000 X5. Pestroa:ns Utilize.existing a " Relocate one and refurbish L--ip Stu- $ 101000 10% Cantintencies 1,000 Total 11"Goo CiTr1�" iCtiSP II $55S,100 4112/77 OYSTER POIN7T PRELIZMINARY ENGINEER'S ESTINRATE, PHASE III (1931--1932) (1977" Prices). 1 . Demolition and Removals a- Berthing .1. Remove exist.® floats 87.0 Br 0 160 — 13,920 2' Pull 5QT piles '(250x50) 12„500 L,F 0 2.25 - 28,12.5 - 5. Cut- Off-50 -piles. s0 ea. 0 75.00 = 3,750 45,795 b, Misc. structures (piers, etc—) r ' Sub-total 55, 795 10% Contingencies- 5, 58a . . . 2. T3recigsng 49,700 CY Q- $ 6.00 — 298, 00 10 COrttir'ge1 eS 29,820 - - 328-,000 3. Berthing (wood) I. Berthing 55,952 SP $18.010 1;9707,100 ' 5% Contingencies - F50,400 r-Total _ 057,57771 4. Piers and—Gates T A. Piers 4 ea 7' ,$12,500 — ; 50,000 -'.2; Gates - ._ ::� 4-ei '0 3; 500 = 14,000 Sub-total 64,000 10% Contingencies _* 6,400 Total 70,4710 5. Utility adjustments 4 ea 0 $2,000 3,000 10% Contingencies 800 Total 8,800 6. Res rooms 2 ea: 0 $30,000 — 60,0(70 10% Contingencies 6,000 - Tot.al - &6,000 7, B-reakwater 60,900 SF 0 ,$ 6.00 -- _365m,4= 10"o-"coij ingenci es 36,600 Total 402,000. TOT.,XL $1,09"r,loo EXHIBIT REFERENCE EXHIBIT 1 Master Plan for Development of oyster Point/Marina Park prepared by Daniel , Mann, Johnson & Mendenhall. EXHIBIT 2 Construction details and estimated costs of construction. EXHIBIT 3 Phase I of the Development Project. EXHIBIT 4 Phase II of the Development Project EXHIBIT 5 Phase III of the Development Project 1977, 79' 1978/79 - • New B�Isin UP�rad� Existing Phases I Existing. ® Shoreside and 11 _ Basin Costs 1. Deraalztacn - lI 6:L Dredging 243 243 L achate 280 - 2800 *Clay Can Sew a 739 -- X39 i t1'raUT' 84 42 16 Revetaexst " . 165. 21 287 New Bzeahwa O 992 992 Replace ExasOn Brea-date X02 _ 4032 r �erthinz " " 1;;;313 1,313 7;,038 Piers and Gates 83 Pavn 102- . 307 _ txlit . 38 211 592 Tl r i rr a� 17 17 . � xr 1'raena de �. 37 Y' 37 24 .i satin- fah 1 - 107 Lands caping 312 . 65 37 • Res trnams 66 . 33 99 - Halborkat ter 66 66 Sugar' total 1977 Cost�s inch--ding HOW 2- l nci dental ExP ens es Es Cala.tion 439 10? • .563 - .- :Engineering and s ld znx.strati�r:x - Soo Sub tcat.al 3."Laun6bing Ramp .. 100 4_"Fishzng Fier Vclu?c portions of Leac at,e ContTol Measures) lail nZ; amenities , included in rather line items) res in thousands 4-2 C?7 rrs UR Cz hi *-- 0 7 It ®+ 0 4J ` M C) S- 0—D'S �+ ✓ ry a ;2:: � W . 4 4 ivib el I b7 dP 1 t�i19 F1 M r '� M 04-) uj Yom• ,-�/S W ACS V 'M 11 k4 1 l �1�)}1 A A IT�3" p � � �� � aid «F s -0 (zCA0 CA as rd tn b iQ r- L� _ 0 ca_ rl •. Liz (S7 1'4f� )lI17':1E1 ;.i!i!$ti 19 t q rx 'F C7 T] • iL9L"�l?L1?�tt�;lStf lttp � "� -C M rd till Aj k, Al A Al 111 A'01 lW)W1Yf4 ej M r ..— rwwiFl,tJYillawlklvRA _;J 71tmy411t1tallaolaA , (Ij rca * - 4'17 CCllttwwt 'tii�iGZ��:tGt9tt ap a - cts c rd *n 781w11�1:7ti�1H4 v166xH' " °, CU lst2tt�l`alt�tE� alr � '` Jill a c1 w a *�� � �' •� raj s_ tU $-. r# �� i.•a'1d"'�•, '•-w _ _ +: ""� 'S.. 'L�"tic CU al ci ZIP x.,� �" 1 ' . R w c +Y 417 1t3. L EXHIBIT 3 LM ' cn trs 44 = . Q 4..3 6Trti w( .:7 I I N I H l a to.— 1 M.4 +. a ' xw CL a LAP, IL .� •° ci CL B r$r2',des 11h'd k 1aa 1 Y1 1 �, s "� CC i= + Lu�Lh G 43 tW.t�L,9 `1v vLR�tC 9.X`L� r�. � � - � �r-- LAS w �a9 wltdl; q up3I11Y3,k3 Tv �ti 1 %� 4 0" -Cty tR•Q LO Gj . YWCO'�il l-nu�nr.,rnanra-°�n"m-�y.r-��..� } ��•.� � ���, as ca^rw, 4-> 4-3 " t$,;.t�l.t�.�.�'?.t�tt�-:'M Ztt9.,�- a � �; � •� T;' - esr r- ka5+>F9E9r}gtf9�91:9AihA"w x tr ttt tattutt� . URUL ■� -, �"r ' E CO lt9h5Y9Et999 lirArl'IFiBY� ': �� t : aj t':3 ci z-- w 11 �t1:4tttla : l'C4Llti „ t S.. l R 9:9 k NW�9 Y i2 k H9 AN 1 I 1�:�"'" 4 -. � - �, -F"a' �'• "1"a r: -rte S +" 9= 0 S- . 4-1 ci _ ry `. -0 rn w 9 ro " + a Qj cu u tn.i�„y,."`�St� s +` �• ;-- � �- to � 7 a ra CU LL- CD t9Y rL3 n19 Li r EIBIT �E ,Y. �9 11-1 A"rte! Y�1 r a j , { 0 i. �� • � < CL 1 'y� IAi�N014�� c3 A:WlC.ryai:�iY��Srw71 �w1 k _��� �! � ��lL Rx rp C CL Cl 0 ",}J a Q3w';4 .9�! P!_ =W resC P � w /� � a f C!? VA a A!1 w i f mo 1n Q .w cnELY- Ln yM'o,6rq lYrrY tl6 Fri 111 ra eaiTi ry�ytt„j,t °+•, f r,}"T9,� 'Z' � 5...�; ' . 1 11 111!'1'F ii 11 1.ki !. /74.r �, w�e. •'r°� .',a.;.� CL1 { ' O tn Q3 1-i( rCl.r—, °4-:0 CL) e Q! Q3 i. t21 w t ro f S r°-7 ko vi � � 7r. °rte co (9' t "'fs}p,�.: •ps� ��� D�,J�'� ��/ki.M1.T.- ,'r 'r'"'° {wpb 1�,.! CU L) w = C3 w 1J sw t, co ci AGREEMENT AMENDING JOINT PV-1ERS AGREEMENT THIS AGREEMENT by and bet-..)een the SAN MATEO COUNTY HARBOR DISTRICT, Political Subdivision of the State of Californ,41 a , herein5fter. referred to herein as "District," and the CITY OF SOUTH SAN FRANCISCO, a �,Iunicipal Corporation , hereinafter called "City" WITESSETH: r,-CITALS: 1. The parties hereto entered into a Joint Powers Agreerrent eff2cL, tive as of 12:01 a.m. , November 11, 1977, and executed on October 21, 1977, by the City of South San Francisco and on October 24, 1977, by th,2 San Mateo County Harbor District, wherein District Was to maintain and operate the Oyster Point Marina Park and perform other acts as said Joint Powers , Agreement provided. 2- Said Agreement required the District to advance sums in the amount of $700 ,000.-00, to be repaid from revenues from the project, as described' in said Agreement, and further required repayment to the. City n of 5215,000.100 (with adjustments) +qhich had been advancEd by the City; said repayment to be pursuant to a schedule to be developed by the Policy Board. 3. The project cost far exceeded the estimates of engineers and the District has advanced sums in excess of $700,000.00, and may be required to advance additional sums in order to complete said project. 4 . The parties hereto desire to amend said Agreement, NOW, THEREFORE, said Joint Powers Agreement is hereby amended to provide as follows ; 1 . District shall be repaid all monies advanced by it including those Sams in excess of $100,000.00 without interest- If revenues in any year hereafter exceed the amount for servicing loans from the State of California , Department of Mating and Waterways ( f&f'me-ly Department of Navigation and Ocear Develop7ent) , the, amounts necessary for reasonable depreciation, as determined in accordance with the teams and provisions of the Joint Powers 'Agreement, and operating expenses , said excess revenues shall be paid to the District for deposit in the Harbor District's Capital Outlay Fund until the amount advanced by the District has been paid, A which time any such excess funds remaining shall be divided equally among the parties hereto as provided in the Joint Powers Agreement. 2. Provisions for repayment of monies to the City of South San Francisco and the sum of $700,000.00 to the District as provided in the Joint Powers Agreement, are hereby reaffirmed. 3 , Sums to be repaid to the City pursuant to the terms of said Joint Powers Agreement shall be paid from operating revenues from lands , improvements , leaseholds and other revenue generating sources for which the State Lands Commission of the State of California does not require or regulate apporticnwent or Mstribution Qhereo?. If th2r2 are no suc,,-, lands , improvements , leaseholds or other revenue generating sources , then said sum shall be repaid to the City pursuant to the Joint Powers Agreement in a manner determined by the Oyster Point harina/Park Policy Board, It is the intent of the parties hereto that said funds shall be repaid to the General Fund of the City. -2- 4 . Paragraph g of the Joint pDxer3 Agreement, authorizing the District to lease lands to private developers , is hereby amended to provide that the District may lease lands within thE! project Site to Private developers and/or public agencies . 5' Except as amended hereby, the tenTs and prOvi3iong of said Joint Powers Agreement is hereby reaffirmed. 6. This amendment to the said Joint Powers Agreement shall be retroactfvi and considered effective from the date said Joint Powers Agreement was executed, except' as herein expressly provided. 3IGNED: 1979 CITY OF SOUTH SAN FRANCISCO By: City Manager ATTEST: ` SIGHED: 1979 SAN MATEO CQUNTH HAVBQQ DISTRICT ~ - `_- -3- RES OLUTT ON NO. 119-79 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT AMENDING THE JOINT POWERS AGREEMENT BE-54FFN TjjE SAN t1ATE0 COUNTY HARBOR DISTRICT AND THE CITY­OF SOUTH SAN FRANCISCO - OYSTER POINT MANNA '�IHEREAS, the San Mateo County Harbor District, a political subdivision Of the State Of California, an-d the City Of South San Francisco, a municipal corporation, entered into an agreement effective as Of 12:01 am. on ,oaember 11 , 1977, and executed on October 21 , 1977 by the Cit L, y Of South San Francisco and on October 24, 1977 by the San Mateo County Harbor District, providing as therein set forth for the development, operation and maintenance of the Oyster Point Marina ; and WHEREAS, the Parties desire to amend said Joint Powers Agreement as set forth in the document entitled "Agreement Amending faint Powers Agreement" , a cOPY of which is attached hereto as Exhibit "A" . NOW THEREFORE BE IT RESOLVED by the City Council of the City o•1 South San Francisco that: Execution. The City Council authorizes execution of the agreement amending the Join(' Powers Agreement, a COPY of which attached hereto as Exhibit "A" . 2. Signatures . The City Manager of the City of South San Francisco is authorized to execute Said agreement on behalf of the City, and the City Clerk attest his signature thereto. 1 . hereby certify that the foregaj-rig Resolution was introduced and adopted by the City Council of the City Of South San Francisco at a regular meeting held on the 3rd day of October 1979 , by the followij)g vote : AYES : Councilmembers Ronald G. Acosta EmanUele 14. �Dan)onte 2-nrLL i 'Irrian.d Pgberti C�rrj Te—,1, is NOES ABSENT; ATTEST : /s/ Barbara Battaya City Clerk Reso1 utlon a 119-79 j T i j C -% 316 :hc --Ay C—rZl cf Z? L:,At 7z�.Y—",- 2. EXHINT "A" TO PESCLUTION lqOS .2a7-P:-, & RPD-7 ADOPTED NnveThr,� ?7 —, 19 P; SECOND AGPEEMENT AMENDING JCINT PO'JR.S AGREEMENT THIS SECOND AGREEMENT amending the Joint Powers Agreement by and between t"--i2 SAN MA'FE0 COUNTY HARD0R DISTRICT (hereinafter referred 'uc as "DIS-RT CT'l and he CITY DF SOUTH SAN FRA:'4C !SC0, a Municipal corporation (hE !-r- ina`;=r- refer-red to as "CITY" ) is made .5,4d ender-ed iOtO as Of this 27th day of November 85 W 1 T N E S S E R--A on 0 c--o b e r 2 1 7 7 , the pa rz i e s here a entered i n c o c Powers - � 'hnreinEf`er "Ao�-eement for the purp• se of repEil !-in- �nt-Jlor- replac �ro zx-s', i no 'oar-n- fac i I it i es -=t- Oyster Point and ex p?nd i n g s a d f;;C - - lities as =s z ri b ed t e re in , a nd for t h-2 purpose of permit n g the D'15 T4;C T to Fna'�ac-2 , maintain and . operate said existing TMarina and construct , marlcucjo Maintain and operate the future Marina. Developr-iitnt at OystEr Point ; ErCl. WHEREAS, said :agreement was arflendee on October 11 , 1979 ; ard, WHEREAS , said Agreement, and amendi-nEnt thereto required the establl `is,hlme,,it of a PriLiCY BOAR'D consisting of five (5) me,7bers and charged Said 2Car-; v,' the responsibility' for maxing reccri-nendal- ions to the CITY and DISTRICT on al i matters of pol icy relating to the construction , operation , manage,7E'lt and maintenance of 0 Y S 71 E R P 0 1 N T Mr"%R i N,4/PA R.K and re q u i r,e d staid Board c e x e rz i s 2 c 2 ria j,n other p ow e!-s spe.-- ff icall ly del.egated to it ; and L H S the p a rt i e s e rn-'L c desire aoain a-)end said Agrewme 4 to restL r-jctur- t'7e POLICY BOARD and exorcise its delegated powers -, NOW, THER'_:'-0P--- , it is aqrnEd: ParEcraph 4 amended Paragraph 4 of the Agreement is herLbY amended to read as follows -4. LIAISO�l GRcup To facilitate the &CCOMPlishment- of the purposes of this Agreement be shall � r�gularl y held between the DISTRICT and the CITY by appointment by each body of representatives to a LIAISON GROUP, consisting o I f two (2) members who shall be Council Members from the City of South San Francisco, appointed by said Council and two (2) members who shall be HARBOR C',TIISSIONER-S, appointed by the B06RD OF HARBOR Co,�� ISSIONERS, each to serve at the Pleasure of his or her respective agency. Each member of said LIAISON GROUP shall serve without compensation , but shall be reimbursed actual and necessary expenses from the ,;revenues from said OYSTER POINT MARINA/PARK. Said respcnsibilit GROUP shall gave y for reporting to the CITY COUNCIL and HARBOR CCXMISSION on all matters Of Policy relating to the construct management , and main.tenance Of the construction , operation'' OYSTER POINT MARIWA/PARK. and such other powers ,' if any, as are DISTRICT and the CITY.' The Specifically delegated tO the GROUP by the an advisory body ' Primary Purpose Of Said GROUP is not to be 1. , nor is it to present reMmendations to either party. is constituted solely as a means for direct coffmunications , exchange Of ideas and reports of plans between the DISTRICT and the CITY.- The Chief administrative officer, the attorney and engineer Of the DISTRICT L shall serve as Staff to the LIAISO-N GROUP an all matters involving the -2- DISTRICT' S responsibility and the chief administrative officer, the attorney and engineer of the CITY shall serve as staff to the GROUP on all matters involving the CITY'S responsibility. Compensation for each staff person shall be the responsibility Of the primary employer of said person , but said salary shall be considered as part of the expenses of the OYSTER PARK MARINA/PARK incurred for the maintenance and operation to be reimbursed from operating revenues , pursuant to Paragraph 12 hereof.' 2. ParacrRuh 5 amended. The last sentence of Paragraph 5 of the Agreement is hereby amended to read as follows : 'However, pursuant to this Agreement , ultimate financial responsibi- lity rests with the HARBOR DISTRICT and for this reason, if there is disagreement between the CITY and the DISTRICT as to the manner- in which the project will be constructed, managed, maintained or operated , the final decision as to said matters shall be made by the BOARD OF HARBOR CCMMISSIONERS of the SAN KATEO, COUNTY HARBOR DISTRICT.' 3. Paracrai)h, 6 amended. Paragraph 6 of the Agreement is hereby amended to read as follows : "6. METHOD BY WHICH CONSTRUCTION PHASES OF THE PROJECT WILL BE ACCOMPLISHED (a) Plans and Specifications : The project may be constructed in three initial phases as set forth in the Agreement between CITY and the fomer State of California Department of Navigation and Ocean Develop- ment ("DNOD") dated September 8, 1975 , the proposed Master Plan (as amended) , and the OYSTER POINT MARINA/PARK Specific Plan adopted by the CITY on September 21 1 1983 , and as said' Specific Plan may b� amended from time to tir-ne. The DISTRICT has already contracted with engineers -3- for the Preparation of proposed project plans and Spec if icntions'. Flans and specifications for the proposed Project have been prepared under the supervision and direction of the DISTRICT and .paid for by the DISTRICT from DISTRICT funds or loan 'funds received from DNOD 'S Successor, the State of California Department of Boating and Water ways ("CAL-DOATING') . Upon completion of said plans and specifica- tions , and for any future plans and specifications , the -same shall be reviewed and approved by the BOARD CI" RARBOR CCMMISSIO NERS of the HARBOR DISTRICT and the CITY COUNCIL olF the City of South San Francisco. (b) Award of Contract: Upon review and approval of said plans and specifications by the DISTRICT and CITY staf-is and the govern- ing bodies of each of said agencies , subject to Paragraph 6 (a) above, the DI.,STPICT shall call f'or competitive bids . The contract shall be U .x-. warded by the DISTRICT to the lowes rasYOrsive 6r,' r`Esponsible bidder, 1"l (c) Construction. Const ruction of said work of improvement shall be under the supervision and direction of the DISTRICT. The engineers of the DISTRICT shall consult with engineers for the CITY during the Construction process . The engineers of the CITY shall have access to the construction site, the power to inspect the sLme during th.e course of consLruction , and upon request shall be furnished all plans and speci- fica,tions prepared by the DISTRICT for their review and comment. (d) Project Site: The said project shall be constructed partially on lands - owned in fee by the CITY and partially on tidelands and sub- merged lands 'and nothing set forth herein shall be, construed as vesting any ownership -in any of said lands in the HARSOP DISTRICT. ' -4- 4. Paragraph 7 (b) amended.- The last sentence of Paragraph 7 (b) of the Agreemcent is hereby amended to read as follows : " In the event that said employees fail to Perform their services and duties adequately and in accord with personnel requir-Lflents of the I CITY, said employees may be discharged in accordance with the person- nel rules and procedures of the CITY at the request of the DISTRICT. " 5. Paraorarh 9 amended. Paragraph 9 of the Agreement is hereby amended to read as fellows : `9 - LEASES DISTRICT may lease all or any portion of the existing marina, the lands within the project Site or the project as completed , to private developers and/or public agen,cies subject to the approval Of CAL-BOATING and the CITY. The revenues from any such lease or leases shall be considered as operating revenues . " 6. Paragraph 10 amended. Paragraph 10 cf the Agreement is hereby amended to read as follows : ACCOUNM"IG RECORDS (a)I DISTRICT shall maintain account books and financial records to show the revenues and expenses of the OYSTER POINT MARINA/PARK. Said records shall Prorate expenses of the DISTRICT wher-, said . expensc?s are attributable in Part to other DISTRICT functions . Said Prorations shall be subject to review by the CITY. (b) CITY shall maintain account books and records to show the ex- pepses to the CITY for providing municipal set-vices to said Project Said records shall prorate expenses where said expenses are attributable in part to other CITY funEtions . Said prorations shall he subject to review by the DISTRICT, (c) DISTRICT shall render a semi-annual report concerning the finan- cial affairs of the OYSTER POINT MARINA/PARK. " 7. Paragraph 11 amended. The first sentence of Paragraph 11 of said Agreement is hereby amended to r-,ad as follows : 'DISTRICT shall maintain minimum insurance required by CAL-BOATING in accord with the Agreement with said Agency and such other insurance and in such amount as may be considered necessary by the DISTRICT and the CITY. "' 8. Paragraph 12 amended- Paragraph 12 of said Agreement is hereby amended to read as follows : w12. DIVISION OF REVENUE (a) Operating revenues received from the OYSTER POINT HARINA/PARK shall be used to repay loans from CAL-BOATING. (formerly DNOD) including the existing loans, if any, to the CITY and the expenses and costs of management , operation and maintenance of the project . Operating revenues in excess of those required for debt service and operating costs and expenses as provided above shall be held in a - reserve account subjec�,.to the terms and provisions of the loan agreement with CAL-BOATING, After satisfaction of the yearly requirements under the loan agreement with CAL-BOATING, and during the term of said agree- ment , with CAL-BOATING ' S consent , said excess funds shall be held or disbursed as follows : -6- The CITY and the DISTRICT shall establish a r-easonable depreciation schedule for the various elements Of the PrCi .env excEss funds remainin; sn o 5e d i v ind QlwaVy tevvevn Ve par;ks hereto. -,AC:72,- as SOL0 f kal ly provided for above , any re-FerE-nce in said Agrecm.=.rji, Or Said Agreement amending the joint ewers Agreement to POL:CY or 530D is hereby amerded to read as follows: "LWSON SROUP'' Excecc as Scecificaily orovided for above, any reference in said AoreemeN-, or said AcreemEnn amending joint Powers AgreEmEnz to 2NOD is he-ebv amendei to rear as follows ; T& S cnange reflects the QcT that the Snate Of Cal ifornQ Depirtoent OF Navigaiion and ?cE;', 3evelopmenv has been real aced by the Mzv of Caqi - arnia Decarnmenn of Eoazing and Waterways , EXC W t as spec i f i c3i I y amence! h e r e 1 n , Ehe s ;,n d -ond i ti ons of the .,,;r2QMP--'T and rre Agreement amending Mainz powers Qr2ement snall remain incnanged inn ire nereby ratified and reaffirmed by Ge parties hereto, ',;-'714ESS '4HEREOF, the Dar"Zies - nereto, firs: being duly authcrized, rave tlis Second Agreement ameiiing JOU Pc"ers Qrc-e:merlt as of the date il! Yev; firs: a0ve 'wri:7en SAN MARD CCUNTY HARBOR DISTR37 Y, . iY OF SOUTH SAN' FRA,'JCJSC,,) mayor CilEy Clery SOUTH SAY FRANCESCO pARK RECREVMN AND PARKWAY DISTR:CT ; ATTEST: -LAX Of Ica (} I ty Y, CAL i FORN I DEC 'i5 ER State of }A 4 rh On this the -day of before me, S& cc)url ty c SAN MATEO CHRISTINE A. DALE trie undersigned Nowi Public, personally appeared JEAN J . FLOCK'S personally known to me UT�CtkL IZAL proved to me on the basis of satisfactory ewidence C�iRnsE k 0,� �Wmy P=X-CQyr-� to be the person( )who executed the within instrument as President SM MATEC Coum or on behal f of the ca rporatlon therein M- 15. named,and acknowledged to me that the corporallon executed 11. WFTNE hand and official seal- Notary's Signature D 12-2 NATIONAL NOTAPY ASSOCIATION 23012 ✓—lLrx B)wd, RO Sax+62.5 Woes" CA 9136 State of CALIFORNIA 0, this the 12th day 6f DECEMBER 85 Jefore : JOSEPH N.F:GUEIREDO NOTA P Y PUBLIC County of SAN MATEO .-sonally aDr-eared ROBERTA CERRI TEGLIA oersonally k-no,--n to me (or oroved to me on the basis of -son who execute' sat�sfactor-y e,,ridence� to he the oej this inst-rument as MAYOR of THE CITY OF SOUTH SAN FRANCISCO to m tat tha L and ac-k:-owledl�ac J11 OFFICI-A SF,� I I CITY OF SOUTH SAN FU.tICISCO e:,,�tcut--e'-4 JOSE ti N F�GUEIR�E:<-' THE C N07AV-r ?UPL�C -;H 4ATm [zW'Ty OCT 25. 196 wjr my hand and of-fic4a! seal Notary's Sic-yature E CT I CT-q 119 1 Cor-;Dcr z;on, Au ency pr Political S L1:2--d'iv s ic,-- Ac:.<nowle6c7ien t i— cr- st2te of CALIFORNIA On this the. 12th day of DECEMBER �, 19,95 r before m County of SAN KATECI JOSEPH N. FIGUEFREDO NOTARY PUBLIC cersonallY arDcaared . ROBERTA CERRI TFGLI—A - :--er5onaily known to me (oz oj:oved to re or, the basis of satis-factory evidence) to he the person who execute this instr,,lment as EX OFFICIn CHATRMatl OF SOUTH SAN FRANCISCO PARK RECPFATTaL-ALI-���. . �L-D!31RJC OFFICIAL S7-A f� and ac:,'Know1e,-4ue6 to me that JCSEPH N F;GUE-IRECO THE CITY OF SOUTH SAN FRANCISCO it. NF,7A;ZY PU2LIC � C,�,LTF'Qq%'1A ;a! seal htT my han- an":.. oz- C- L --Cnattire RESOLUTION NO. 20-2005 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING A THIRD AMENDMENT TO THE JOINT POWERS AGREEMENT BETWEEN THE SAN MATEO COUNTY HARBOR DISTRICT AND THE CITY OF SOUTH SAN FRANCISCO WHEREAS, staff recommends approval of a Third Amendment to the Joint Powers Agreement between the San Mateo County Harbor District and the City of South San Francisco. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves a Third Amendment to the Joint Powers Agreement between the San Mateo County Harbor District and the City of South San Francisco, The Agreement is attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement on behalf of the City of South San Francisco, I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 23rd day of February 2005 by the following vote: AYES: Councilmembers Richard A. GarbLaDLno,Pqdro Gonzal e z and Ka 1. Matsumoto, ,. and Mayor Pro Tem.Joseph A. Femekes NOES: None. ABSTAIN: None, ABSENT: lyiayor Ra and L. Green ATTEST: City Clerk THIRD AMENDMENT AMENDING JOINT POWERS AGREEMENT THIS THIRD AGREEMENT amending the Joint Powers Agreement by and between the SAN MATEO COUNTY HARBOR DISTRICT (the"DISTRICT") AND THE CITY OF SOUTH SAN FRANCISCO (the"CITY") is made and entered into as of this day of 2005. WITNESSETH- WHEREAS, on October 24, 1977, the parties hereto entered into a Joint Powers Agreement (the "Agreement") for the purpose of repairing and/or replacing the existing Marina facilities at Oyster Point and expanding said facilities as described therein, and for the purposes of permitting the DTSTRICTto rehabilitate, manage, maintain and operate said existing Marina and construct,manage, maintain and operate the future Marina Development at Oyster Point; and WHEREAS, said Agreement was amended on October 11,1979, and November 27, 1985; and WHEREAS, the Agreement clearly states that the CITY retains fee ownership of the Property, and that any loans undertaken by the DISTRICT are the sole responsibility of the DISTRICT and that the DISTRICT shall hold CITY harmless for any costs to the CITY resulting therefrom; and WHEREAS, the DISTRICT seeks to consolidate its loans with the California Department of Boating and Waterways (the "DBW") and the CITY seeks to ensure that its fee ownership of the Property is not encumbered as security for such a loan; NOW, THEREFORE, it is agreed- 1. Section 13 is amended. 13. RESPONSIBILITY FOR LOAN REPAYMENT--HQL-D44AR-ML-E,&& C-LA4SE (a) Hold Harmless Clause. Except as expressly provided herein, except as may be separately agreed to in writing by the District and the City, the CITY shall not be responsible for any of the expenses related to the OYSTER POINT MARINA/P,ARK and specifically CITY shall not be responsible for the following: (1) costs of construction, including plans, specifications, and engineering; (2) economic studies incurred hereafter; (3) repayment of the existing loans incurred by CITY for construction of the existing marina at OYSTER POINT; (4) any loans incurred for future developments at said site in accord with the Exhibits attached hereto; and (5) for any costs of operation and maintenance except as expressly provided herein. In the event operating revenues are not sufficient to service said loans or pay costs of operation and maintenance, the DISTRICT shall assume responsibility for and make all payments due thereon and shall hold CITY harmless from any liability for said loans or costs of maintenance and operation. (b) Loan Security. The DISTRICT shall not provide ownership, entry,possession, Maintenance, or other control of OYSTER PARK as security for any loan. II. In all other respects,the Joint Powers Agreement and the First and second Amendments thereto are hereby affin-ned. IN WITNESS WHEREOF, the parties hereto, first being duly authorized, have executed this Third Agreement amending Joint Powers Agreement as of the date and year first above written. SAN MATEO COUNTY HARBOR DISTRICT CITY OF SOUTH SAN FRANCISCO Mayor SOUTH SAN FRANCISCO PARK RECREATION AND PARKWAY DISTRICT Ex Officio Chairman ATTEST: City Clerk APPROVED AS TO FORM; City Attorney 734585 ].DOC CITY C431UNCIL 2015 RICHARD A.GARBARINO,MAYOR Y MARK ADDIEGO,VICE MAYOR 1 �$ PRADEEP GUPTA,PH.D.,COUNCILMEMBER . KARYL MATSUMOTO,COUNCILMEMBER ?` LIZA NORMANDY,COUNCILMEMBER 4 MIKE FUTRELL,CITY MANAGER OFFICE OF THE CITY COUNCIL July 30, 2015 VIA EMAIL AND U.S. MAIL Glenn Lazof Interim General Manager San Mateo County Harbor District 504 Avenue Alhambra, 2nd floor, P.O. Box 1449 El Granada, CA 94018 Dear Mr, Lazof: The Joint Powers Agreement (TPA) between the City of South 'San Francisco (City) and the San Mateo County Harbor District (District) sets forth that the District is "responsible for management, maintenance and operation of the existing and future Oyster Point Marina./Park." The District has had this responsibility since 1977 and per the JPA will continue in this role until expiration of the JPA on November 11, 2026. The City of South San.Francisco has deep concerns regarding the management, maintenance and operation of Oyster Point Marina and Park. I write to memorialize some of the most pressing concerns and ask that the Commission take affirmative and prompt action to address these concerns. Priorities for the City can be separated into three categories: revenues/economic development, capital improvements/facilities, and public recreational access. Revenue 01212ortunities/Economic Development: The economic viability of the marina is of vital concern to the City, and we believe to the District. Steps which should be taken immediately to improve viability include:. I. Follow the guidelines of the "San Mateo County Harbor District Oyster Point Marina and Park Business and Management Plan" dated May 30, 2013, submitted to the State as a requirement to receive former City Redevelopment Agency funds. The Plan is attached to this letter for reference, and calls for, among other things. a. Improve marina facilities to increase boater capacity; City Hall: 400 Grand Avenue - South San Francisco, CA 94080 . P.O, Box 711 A South Sari Francisco, CA,94083 Phone: 650.877.8500 m Fax; 650. 29.6609 Glenn Lazof July 30, 2015 Page 2 b. Accelerate efforts to remove vessels delinquent in rents, unseaworthy, or otherwise derelict; c. Enhance docks for potential charter vessel use; d. Vigorous Oyster Point promotional and marketing campaign; e. Increase the use of the marina and park by cyclists, joggers, walkers, and families looking for recreational activities. 2. In order to test the economic viability of the marina operations and to further the goals stated above, the City believes a comprehensive marina market analysis should be undertaken by a consultant with experience in private and public/private marina operations. This analysis should be undertaken jointly by the District and the City, reporting to the Policy Board established in accordance with the JPA. Many marinas have undergone similar market studies by firms familiar with the marina development community. Such an analysis should identify, among other items: a. The Bay Area marina market opportunities; b. What is unique about Oyster Point; c. What can be done to capitalize on the market and Oyster Point's uniqueness in the near, medium and long term; d. What could be expected in response to request for quotations (RFQ) from private marina concessionaires, and e. Key terms for inclusion in a draft RFQ if that appears feasible, based on the results of the economic and market analysis. This analysis could also provide direction to address other areas of concern; namely vacant leaseholds (i.e. the bait and tackle shop) and high berth vacancies (35% - 40%vacancy according to the recent MSR). Ca ital Improvements/Facilities: The capital improvement and maintenance requirements at Oyster Point were documented by a District sponsored condition assessment performed by the engineering firm Moffatt and Nichols in November 2014, which showed five Priority One needs costing $87,705, and other priority needs costing $5,700,170. Despite these documented needs, however, the FY15-16 District budget does very little to address the needs identified. Indeed, the current year budget allocates only $115,000 to Oyster Point for: • Garbage Compactor $40,000 • Study of flooding issues $25,000 • Design/Permit only Dock 12 $50,000 Glenn Lazof July 30, 2015 Page 3, Conversely Pillar Point Harbor is allocated $710,000 for ten capital improvement projects — almost seven times more funding than allocated to Oyster Point, as shown below; Capital Improvement Budget 411 N Oyster Point uu111 Pillar Point In addition to the priority needs identified in the District's 2014 condition assessment, high importance must be given to: 1. Replacing the wooden pier structures with concrete piers, which have lower maintenance requirements and will enhance the marketability of berths. Priority should be given to docks 12-14 which are beyond repair according to the condition assessment; and 2. Dredging the marina, particularly those areas nearest the Ferry Dock. The permitting process will take approximately 24 months and the District is urged to begin this process as soon as possible. Maintenance of the existing marina is a core function required of the District under the JPA. The already identified priorities must be addressed more aggressively. Public Access and Recreation: The JPA requires not just maintenance and operation of the marina, but also of the adjacent park. The open spaces and beachfront on San Francisco Bay offer limitless opportunities for public enjoyment, enhancement of Oyster Point's reputation and generation of revenue. The recommended marketing analysis noted above must also consider opportunities presented by the ample waterfront park and beach space, and a plan developed in partnership with the City to enhance this aspect of Oyster Point Marina and Park. Glenn Lazof July 30, 2015 Page 4 The City of South San Francisco expects the San Mateo County Harbor District will devote serious, focused attention to the issues highlighted above, providing the leadership and management necessary to effectively operate Oyster Point Marina and Park. The City has additional concerns, including, for example, the long term governance structure for Oyster Point, best business practices, etc., but highlights the above concerns at this time to allow the District to take immediate action on these pressing issues. Sincerely, ,/Mike Futrell Attachments: Summary of Maintenance and Capital Needs from District 2014 Condition Assessment San Mateo County Harbor District Oyster Point Marina Business and Management Plan cc: South San Francisco City Council San Mateo County Harbor District Commissioners San Mateo County Board of Supervisors Martha Poyatos, Executive Director, San Mateo LAFCo Oyster Point Facility Condition Assessment November 2014 Priority Repair Project type 1 2 3 4 Grand Total Maintenance $ 57,705 $ 95,700 $ 95,460 $ 166,705 Dock 1 $ 17,,000 $ 17,000 Dock 2 $ 18,3001 $ 18,300 Dock 3 $ 27,500 $ 27,500 Dock 4 $ 33,300 $ 33,300 Dock 5 $ 15,200 $ 15,200 Dock 6 $ 16,700 $ 16,700 Harbor Master i $ 22,705 $ 22,705 Maintenance $ 16,000 $ 16,000 Dock 1 $ 12,000 $ 12,000 Dock 2 $ 3,000 $ 3,000 Dock 3 $ 3,000 $ 3,000 Gate $ 27,000 $ 27,01 Harbor Master $ 19,000 $ 2,500 $ 2,660 $ 24,160 Maintenance $ 4,000 $ 51000 $ 91000 Restroom 4&5 $ 4,000 $ 4,000 Capital $ 30,000 $ 605,000 $ 654,000 $ 4,250,(100 $ 5,539,000 Dock 12 $ 1,230,000 $ 1,230,000 Dock 13 $ 1,560,000 $ 1,560,000 Dock 14 $ 35,000 $ 1,070,000 $ 1,105,000 East Lower $ 70,000 $ 70,000 Harbor Master $ 20,000 $ 20,000 Maintenance $ 15,000 $ 390,000 $ 4015,000 Marina BI $ 174,000 $ 174,000 Restroom 4 $ 240,000 $ 240,000 Restroom 4&5 $ 30,000 $ 50,000 $ 807,000 Restroom 5 $ 240,000 $ 240,000 West Breakwater $ 40,000 $ 300,000 $ 340,000 East Breakwater $ 75,000 $ 75,000 Grand Total $ 87,705 $ 700,700 $ 749,460 $ 4,250,000 $ 5,787,$65 Table 2;Repair Project Prioritized Costs 2 San Mateo County Harbor District Oyster Point Marina Business and Management Plan May 30, 2013 San Mateo County Harbor District Business and Mana&unmmPlu Oyster Point Marina&Park May 30,2013 San Mateo CMK8Kkty Harbor District 0. Business Description San Mateo County Harbor District Inl933by Resolution the Board of Supervisors uf the County mf San Mateo established the San Mateo County Harbor District. The County of San Mateo established the entire area of the County of San Mateo aothe District's boundaries. The Harbor District operates two facilities, Pillar Point Harbor at Half Moon Bay in Princeton, and Oyster Point Marina and Park in City of South San Francisco, The City of South San Francisco owns Oyster Point and the District operates it for the City under Joint Powers Agreement. Oyster Point is a 455 berth recreational boating marina. Oyster Point Marina and Park Oyster Point Marina and Park is a 455 berth public marina and 33-acre (13.4 HA) county park in the City of South San Francisco on the western shoreline of San Francisco Bay. The marina is located close to oeurbv job centers in various office high rise complexes and near the City's downtown. It includes afuel dock, a boat launching ramp, and a. fiuhiugpier. lo addition to boating and parkland,there are hiking and jogging trails, picnic areas, and 2.3 miles (3.7 km) ot sandy beaches. The increasing traffic on Highway 181 and grovviug 'obceutera located adjacent tothis marina have led to the San Francisco Bay Water Transit Authority to develop a ferry terminal iu the Oyster Point Marina. The San Francisco Buy Ferry began opczuhug nuom/rmuNu hour ferry service between the South San Francisco Ferry Terminal u1 the Oyster Point Marina and the 0uWmmd Ferry Terminal at Jack London Square in Oakland and the Main Street Ferry Terminal in Alameda io June 20l2. Harbor District Service Goals and Priorities Provide Safi, Ocean and Buy Use,Access and Environmental enhancement • Provide marine rescue services to aid boaters who are in distress. • Provide certified Clean Marina program including u recycling program to reduce costs and comply with Federal and State Environmental Laws. Provide Ocean and Bay Access m Provide and increased public access for active and passive enjoyment. Provide High Quality Cominercial-Recreotiom and Marine-Related Services • 5ock quality private sector businesses 10 serve the boating public, general public and commercial fishing fleet. • Actively promote tourism to generate business and revenue for the District. • Provide a balanced level of services for all users mƒDistrict facilities. 2 San Mateo County Harbor District Business and Management Plan Oyster Point Marina& Park May 30,2013 Maintain Positive Public Image • Serve all District customers, clients, staff, lessees, and agencies in a friendly and courteous manner at all tines. • Communicate with the public, media, other agencies and employees on a regular basis through the use of all available media.. • Provide maximum responsiveness to District clients in meeting daily responsibilities. Maintain Ability to Accommodate Growth • Develop and maintain infrastructure. Insure that roads,parking, and other support services are ready to meet future public needs. • Foster econornic development and commercial and recreation oriented business by promoting marina and its potential for duality business development in an environmentally acceptable manner. Market Oyster Point Marina is one of 39 marinas in the San Francisco Bay region. Of these, 17 are public marinas. According to a 2009 Grand Marina occupancy survey,there were approximately 14,700 berths in San.Francisco Bay. The number of vessels in the pay peaked in 2002/2003 at approximately 13,600 resulting in a 7.5%vacancy rate, The 2009 Grand Marina study also reported finding a steady decline in the number of vessels in the Bay since the peak years of 2002/2003. The number of vessels in 2009 was 11,800, resulting in a vacancy rate of approximately 20'/0. Oyster Point Marina has three immediate neighbors: Oyster Cove, a private marina; and two public marinas, Sierra Point.in Brisbane and Coyote Point in San Mateo, operated by San Mateo County. At present, Oyster Cove is 17%vacant, Sierra Point 7%vacant, and Coyote point 30%vacant. Oyster Point Marina is currently 23%vacant. Sierra Point's lower vacancy is attributed to the fact that the City of Brisbane has subsidized rates there for years. Annual surveys show that Sierra Point has consistently been among the lowest berth rates of SF Bay marinas. In view of the depressed economy as indicated by the number of berth vacancies in Bay Area marinas, Oyster Point faces a challenge in its efforts to increase occupancy and grow revenue. The Oyster Point Marina is competing in a regional market with other marinas for a reduced number of boaters. 3 San Mateo County Harbor District Business and Management Plan Oyster Point Marina& Park May 30,2013 an Mateo County Harbor District 2. Financial Plan The potential for attracting new boater occupancy at Oyster Point Marina and associated increased revenues is largely dependent upon: a) The San Francisco Bay regional market demand for berthing facilities b) The quality of marina facilities and tenancy c) The level and quality of on-site amenities and/or convenient access to such amenities off-site d) A vigorous marketing effort to raise boater, visitor, and general public awareness of Oyster Point's positive attributes. The Oyster Point Marina's financial plan relies on taking actions to develop long term solvency and plans to maximize existing revenue. Special events and circumstances, such as the upcoming Americas Cup centered in San Francisco, may also create opportunities to increase occupancy and revenue, Develop Long-Term Financial Solvency • Reduce costs by finding different ways to provide current services for less cost by improving operations and automating wherever economically feasible. • Aggressively pursue grants, private sector funding, and other financing sources to decrease dependence on taxpayer dollars. • Expand use of user fees and charges to increase District's income. • Develop and implement long-term fiscal plans to keep the District financially solvent. Plan Ahead to Maximize Existing Resources • Develop a long-term strategic plan to guide the direction of the Harbor District in a purposeful manner. • Develop and implement an operations plan that will identify the specifics of our strategic plan. • Insure public input and participation in decision-making for future facility and service needs. ............. ....... 4 San Mateo County Harbor District Business and Management Plan Oyster Point Marina& Park T\Iay 30,2013 The strategy to improve the Harbor District's finances relies on small incremental steps to build up capacity and revenues, This will result in moderate revenue increases the first few years and improved performance in later years as the economy improves and the District efforts take full effect, Income Statement(Year 2012-01-2005) Fiscal Year 2012/13 2013114 2014/15 2015116 2016/7 Operating Revenue $1,792,247 $1,828,092 $1,882.935 $1,977,081 $2,075,936 Non-Operating 0 0 0 0 0 Revenue Total Revenue 1,792,247 1,828,092 1,882,935 1,977,081 2,075,936 Operating Expenses 515,599 525,911 541,688 557,939 574,677 Non-Operating 952,300 971,346 1,000,486 1,030,501 1,061.416 Expenses Total Expenses 1,467,899 1,497,257 1,542,175 1,588,440 1,636,093 Net Income 324,348 330,835 340,760 388,642 439,842 5 San Mateo County Harbor District Business and Management Plan Oyster Print Marina cat Park May 30,2013 San Mateo County Harbor District 3. Management Plan Management Teamn. The management team includes Peter Grenell,the Harbor District's General Manager, Scott A. Grindy, Oyster Point Marina Harbormaster, and the Harbor District's Board of Commissioners. Peter Grenell, General Manager Deter Grenell has been General Manager of the Harbor District for fifteen years, He has overall administrative responsibilities for Pillar Point Harbor and Oyster Point Marinal�Park and directs the Harbormaster and other District staff.Mr. Grenell oversees routine administrative matters and heads the District's management tear of Harbormaster, Finance Director and Human Resources Manager. His responsibilities include overseeing preparation of(materials for twice-monthly action by the Board of Harbor Commissioners, grant writing, representing the agency before various boards, councils and commissions, directing project development in concert with the Harbormaster and strategic planning. Before his work with the Harbor District, his 35 years of professional experience included serving over eight years as Executive Officer of the California State Coastal Conservancy. He also has five years experience as program developer, director and project manager for numerous Conservancy waterfront and access and land conservation projects. He has worked in the public„ nonprofit and private sectors both domestically and overseas in urban development and planning and harbor redevelopment. Scott A. Grindy,Harbormaster Harbor Master Scott A. Grindy oversees operations for the San.Mateo County Harbor District at Pillar Point and Oyster Point Marina/Park, This charge includes day-to-day operations including facilities maintenance, occupancy and berthing management, ocean search and rescue operations,facilities improvement project development and constructions, supervising 19 harbor patrol staff and special events management. Previously, Mr. Grindy served over 25 years in the management of capital projects, facility, building and engineering administration, buildings operations, emergency operations„road and highway construction/design and security operations. For seven years he managed the Port of Everett's 2,400-berth marina, overseeing slip rentals, budgeting„ grants procurement, marketing, customer services and facilities maintenance and security. He was an executive member of the Department of 1 lomeland Security's Area Maritime Committee. He has also managed a university campus including construction of its first two phases, as well as a technical college with offsite campus buildings. Board of Commissioners Five members sit on the Harbor District's Board of Commissioners. Commissioners are elected by the general public and serve staggered terms of four years. Their experience San Mateo County "arbor District Business and Management Plan Oyster Point Marina & Park May 30,2013 includes managing ports, setting ocean and fisheries policies, practicing law and establishing public interest organizations. Their educational experience includes graduates from the University of California, Davis, Eastern Michigan University, San Francisco State University and UC Hasting College of Law. Organizational Structure The Harbor District is an independent special District whose jurisdiction is Safi Mateo County. It is governed by a board of commissioners with legal and ethical responsibilities. The board of commissioners is responsible for ensuring that the Harbor District meets its legal requirements and that it operates in accordance with its mission. Commissioners are also responsible for safeguarding the Harbor District's assets, ensuring the District has sufficient funds to operate, and hiring the General Manager. The General Manager serves as the chief executive officer overseeing all day-to-day administration and work of the District. The General Manager reports to the board of commissioners and is responsible for developing and managing the District's $10,211,126 budget Other responsibilities include ensuring that the District's program objectives are clearly stated, ensuring that program activities are focused on achieving stated goals, and providing strategic leadership for serving the boating and recreational needs of San Mateo County. 7 San Mateo County Harbor District Business and Management Plan Oyster Point Marina& Park May 30,2013 San Mateo County Harbor District 4. Operating Plan Aa stated io the Financing Plan, attracting new boater occupancy m1 Oyster Point Marina and increasing revenue are dependent on facility improvements, taking advantage of operational opportunities and marketing efforts. This section describes the Harbor District's facility improvement plans and efforts to take advantage of operational opportunities. Improving the Quality uY Marina Facilities and Tenancy Facilities: In recent years the Harbor District has completed several substantial facilities improvements and upgrades u1 Oyster Point. These include: • Rebuilding the small craft launch ramp • Repairing segments afthe Bay Trail within Oyster Point • Replacing dock gates and nboc|urm| repairs tmthe gmzea` foundations and uoow code access system • Maintenance dredging wfthe east and west basins • Reconfiguring the marina breakwater entrance to facilitate safe, quick, and convenient access hy the new ferry • Renovating u public rcxtroon` • Rebuilding the guest dock and one permanent berthing dock The Water Emergency Transportation Authority has also removed two old docks to make room for the newly constructed ferry terminal. Facilities improvements will continue consistent with the draft Capital Improvements Program (C[P}prepared hy the District pursuant lu its Agreement with the City of South San Francisco. tn accordance with the Agreement, and ao set forth iu the CXP,the District will henceforth focus its attention and resources on the water area of the marina proper. The CIP outlines u series of dock replacements and upgrades over afive-year period ux requested 6v the City. The dock replacement will enable the Oyster Point Marina|oprovide new, larger, h)8b quality berths that will be able to cater to current market trends, The new docks will enable the Oyster Point Marina<u increase occupancy and generate increased revenues, The District has completed rebuilding the first of the nexN docks, which replaces the dock adiacrnttothe ferry terminal. Improvements tothe guest dock, also recently completed, are expected to result in augmented revenue from guests berthing and use by charter cruise vessels. Tenancy: lomcontinuing effort Tn improve the ambiance and attractiveness ofOyster Point Marina,the Harbor District has been acting turemove vessels that are delinquent in rents, unseaworthy, or otherwise derelict, abandoned, and unsightly. Between 20O4and 20]0.the District removed approximately 34 vessels ftnco Oyster Point Marina(at least « San Mateo County Harbor District Business and Managernent Plan 0 ster Point Marina& Park May 30,2013 29 with state grant funds). In some instances,this action may result in a temporary small decline in revenue and occupancy, but this is expected to reverse with the entry of new boater tenants who are able to pay their rents and maintain their vessel in satisfactory condition. I.,essee Concerns and Opportunity The District may make minor modifications and repairs to the marine center sales dock which is included in the Marine Collections UC lease. These rninor modifications and repairs will make the facility suitable for use as a charter vessel boarding dock. The District is exploring with the lessee, Oyster Point MV LLC,the possibility of pursuing an opportunity for ajoint revenue sharing venture to enhance the use of the marina. The District is now exploring the feasibility of a plan and proposal for this opportunity at the request of the lessee. Level and Quality of On-Site Amenities and Off--Site Access: Links to City Redevelopment Plans Increased boater occupancy—and revenue depends to a great extent on the amenities available to boaters at the marina, or nearby access to these amenities, required amenities range from clean and functioning restrooms and bathing facilities to laundry facilities, restaurant establishments, and easy and frequent public transit to downtown. Boat servicing and detailing, chandlery and other marine supply, secure storage, and decent vehicle parking are also important attractions. A challenge to the City and the District in enhancing on-site amenities stems from the City's Oyster Point redevelopment planning process. Eventually,the City's efforts will transform Oyster Point into a thriving business, visitor and recreational destination. However,the City's recently released programmatic environmental impact report for Oyster Point and other City information indicate that major infrastructure improvements, including streets and utilities,that are projected for the marina area are several years off. Structure demolition and site preparation for planned commercial redevelopment likewise are not imminent. The District's capital improvement program is targeted to the docks and water area of the marina proper, as per the Agreement with the City. While new dock facilities and an upgraded tenant mix are timed to anticipate the Americas Cup events and the arrival of new tenants,caution should be exercised in projecting greatly enhanced occupancy and revenue in the short tenn. In the absence of improvements and additions to on-site amenities,the continuation of the sluggish economy and high unemployment,: as well as rising oil prices will continue to be a drag on improved occupancy and revenue growth. Potential Impact of New perry Service on Marina occupancy The Water Emergency Transportation.Authority(WETA)began Oyster Point ferry terminal service in.tune 21012. The actual impact of the ferry service oil the marina,with its traffic of incoming and outgoing riders, is as yet unknown. While it is likely to attract many people who are curious about the new vessel and service in addition to the ridership of journey-to-work commuters, the affects of this activity on possible increase in berth occupancy and revenue remain to be seen. 9 San Mateo County Harbor District Business and Management Mara Oyster Point Marina& Park May 30,2013 America% Cup-Simulated Opportunities The forthcoming Arnericas Cup events on San Francisco Fay offer all exciting opportunity for the City and the District to augment revenues. Opportunities include the promotion of the Oyster Point Marina for docking to visiting boaters and to charter cruise vessels transporting Peninsula passengers to view the events. The Marina can also be promoted to new boaters created by the enthusiasm the America's Cup will generate. Replacement of Dock i l (refer to above)will enable the Marina to provide a number of new berths. Improvements to the marina's guest dock and/or modification of the sale dock will serve the charter cruise vessels as mentioned above. Accelerated efforts to remove vessels that are delinquent in rents, unseaworthy, or otherwise derelict or abandoned will enhance the marina's attractiveness and increase desirability by new boaters. Making on-shore improvements to the City's streets and parking areas will also enhance the attractiveness of the Marina and reduce safety hazards. 10 San Mateo County Harbor District Business and Management Plan Oyster Point Marina& Park May 3W 2013 San Mateo County Harbor District 5. Marketing Plan The Marketing Plan for the Oyster Point Marina ia made Lip of the following five sections: A. Problem Statement—u clear declaration of the marketing challenge B. Objectives—the Marina's marketing and financial goals C. Current Market Situation—un analysis nf the market, competition, and macroeconomic environment D. Opportunity Analysis—u look ut the Marina's market opportunities E. Marketing Strategy—the positioning and marketing pf the Marina A. Challenge Statement The Harbor District's challenge is to increase revenue by enticing more boaters to berth their vessels o*Oyster Point Marina mmw permanent ar transient basis. B. Objectives Financial Objectives inopn`vo Oyster Point Marina fiomnceo6y • Increasing total revenue hyl6%between FY2ol3/l4 and 28|6/|7 • Increasing net revenue ky36%FY2O)}/14 and 2O16/l7 • Reducing operating costs The Harbor District will achieve this in part by improving the process for collecting delinquent rents, increasing docking rates periodically and hy rebuilding the docks removed from the marina. The new docks will accommodate larger boats that pay higher docking rates and reduce the cost of maintaining the docks. The Harbor District will also increase net revenue by reducing staff operating costs which will increase net revenue. Marketing Objectives • Increase berth occupancy bv3-5Y4 each year until achieving 9596occupancy • Increase launch ramp fees hy294 each year • Increase rent and concessions by 2%each year San Mateo County Harbor District Business and Management Plan Oyster Point Marina & Park May 30, 2013 C. Current Market Situation Xo view of the depressed economy uuindicated by the number of berth vacancies imBay Area marinas, Oyster Point Marina faces competition not only 1lonn neighboring marinas but also from other non-aquatic leisure and nztertaiorucrd m:\ivitioa. With u2O%berth vacancy in San Francisco Bay, Oyster Point Marina will have to improve its facilities and amenities to in order to compete for new boaters and those looking to relocate. To meet its g*vJa, Oyster Point Marina will have to aggressively pursue boaters and other opportunities ms described io Section Dbelow. D. Opportunity and Issue Analysis Oyster Point Marina has identifiodand will pursue the following opportunities romeet its financial and operational goals: • lnnp,nvm Marina facilities mm per CIPioincrease boater capacity and improve the Marina's appeal to ho,tcro. The qonhiy of Marina facilities for tenants and the |u*cUuudquulityofvn-ai1caoucoi1icxmnd/oronuvenieoTucucsmtosuo6o[Nodc mmcnlzlco are vital factors influencing the Marina's ability to attract new permanent and transient boaters. • Accelerate effort turemove veuuc\x delinquent in rents, uoaomwndby, or otherwise derelict, abandoned, and unsightly, This action will increase capacity for boaters and improve the appeal ofthe Marina. • Enhance docks for charter vessel use,which includes the Marine CoUeoduam LLC lease and apomoit]c joint venture with Oyster Point MV. • Vigorous Oyster Point promotional and marketing campaign • Pursuing Americas Cup events opportunities, • Increase the use of the Marina and park by cyclists,joggers,walkers and families looking for recreational activities, F. Marketing Strategy Initial promotional and marketing activities will focus on Arnerica's Cup events and related opportunities. Specific marketing efforts will need to identify tile messages tu convey, the audiences to be reached, interactions desired and communication channels. District staff has begun exploring these elements. The District's primary objective with thoAmericu`s Cup will be tu attract more boaters to berth their vessels o1 Oyster Point, permanently oroua transient basis, /\ secondary objective will be to attract charter cruise operations Tothe marina and promote their activities in connection with Cup events where possible. The Harbor District will also San Mateo County Harbor District Business and Management flan Oyster Point Marina& Park May'10,2013 explore the potential to entice ferry riders to consider basing their boating activities at Oyster Point. Beyond initial promotions around the America's Cup, marketing campaigns will focus on publicizing the Marina. Marketing effort might best be done through a cooperative effort by the Harbor District, the City, and the Chamber of Commerce. Such an effort might include more special events to attract potential boater tenants to Oyster Point and increase the use of the Marina facilities and trails by non-boaters. 13