Title
Staff Report for Resolution Authorizing the City Manager to Execute a Consultant Services Agreement with GHD Services, Inc. in the amount of $107,002.85 for Preparation of a Decommissioning and Demolition Plan for the San Leandro Marina
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to execute a Consultant Services Agreement with GHD Services Inc., for preparation of a Decommissioning and Demolition Plan for the San Leandro Marina.
BACKGROUND
The City's boat harbor operations are one of three accounts in the Shoreline Enterprise Fund that also includes an account for the Monarch Bay Golf Courses and one for shoreline maintenance. Historically, the costs to operate the boat harbor were covered by berthing revenues. The ability to fund dredging of the two-mile federal channel and interior basin, as well as proper disposal of the dredged materials has not been financially positive for over 10 years. Prior to 2005, the City was able to effectively lobby the federal government for funding to dredge the channel. The City's General Fund provided loans to fund the dredging of the interior basin as well as disposal of all the material. The revenue from the City's golf courses and shoreline business leases (American Golf Corporation, El Torito, Horatios and The Marina Inn) have been used to repay the General Fund loans as well as the four outstanding loans to the California Department of Boating and Waterways. Since 2003, the Shoreline Enterprise Fund has paid interest only on the City's two General Fund loans.
The last dredge of the federal channel, which was only a partial dredge, occurred in 2009 at a cost of $2,146,500 (federal grant). The dredge spoils were placed in the City's upland Dredge Materials Management Site (DMMS, located adjacent to and south of Estudillo Channel), but the estimated $2.5M needed for removal and disposal, which would need to be paid for by City funds, was never funde...
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