Title
Staff Report for a Resolution Approving an $81,000 Surrendered and Abandoned Vessel Exchange (SAVE) Grant Agreement Between the City of San Leandro and the State of California, Department of Parks and Recreation, Division of Boating and Waterways for Abatement of Surrendered and Abandoned Watercraft at the San Leandro Marina and the San Leandro Shoreline
Staffreport
SUMMARY AND RECOMMENDATIONS
As required by the provisions of Senate Bill 172, Chapter 930, Statutes of 1997, the Division of Boating and Waterways implemented the Abandoned Watercraft Abatement Fund (AWAF) program to address the problem of abandoned watercraft. The purpose of the program is to provide funds to local public agencies to remove, store, and dispose of abandoned, wrecked, or dismantled watercraft or any other partially submerged objects that pose a substantial hazard to maritime navigation.
The Department of Boating and Waterways (DBW) merged the AWAF and the Vessel Turn In Program (VTIP) grant funding together as the SAVE grant funding starting in FY 2015-16 in an effort to streamline processing of the grant administration and disbursement.
Staff recommends that the City Council adopt a resolution approving the Surrendered and Abandoned Vessel Exchange (SAVE) Grant Agreement, between the City and the State of California, Department of Parks and Recreation, Division of Boating and Waterways.
BACKGROUND
From 2004 through 2010 an average of two vessels per year were destroyed and disposed. Using the awarded AWAF grant #C7701015 for the period of January 2014 through January 2016, the City of San Leandro Marina removed and destroyed 11 boats at a cost of $46,975.11, not including the in-kind cost of $10,950.11. The bid was very low, such that it is doubtful that the City will be able to secure such rates in the future. Staff estimates that between the abandoned, liened, and turned in vessels, the San Leandro Marina will have an increase in activity over the next two years.
Because no funding is identified for on-going dredging operations and that siltation continues to accumulate within the harbor, staff anticipates that many boats will be abandoned or submitted for the vessel turn-in program over the next several years. The City does not have funds in the 2015-16 budget to pay for destruction and disposal of vessels.
The City applied for an $110,000 SAVE grant for FY 2015-16 in July 2015, based on previous grant use and expected need over the next few years. On September 2, 2015 the State approved an $81,000 grant pending State budget approval. On December 2, 2015 the State grant agreement documents were received for review by staff and approval by the City Council.
Analysis
Under California Harbors and Navigation Code §527, a 10% local matching contribution is required for the Surrendered and Abandoned Vessel Exchange Grant. The contribution may be rendered in cash, or through in-kind contributions that must be verified and approved, all at the discretion of the Department of Boating and Waterways. The local matching contribution could include, but is not limited to, administrative costs, personnel hours, and removal and/or storage costs. The City will contribute the 10% local matching contribution in administrative costs and personnel hours to oversee the contracts and prepare the watercraft for towing, removal and disposal.
If the grant is not approved the Shoreline Fund will bear the cost without reimbursement.
Applicable General Plan Policies
• General Plan, Chapter 3.3H. San Leandro Marina
• General Plan, Goal 9
Legal Analysis
The City Attorney reviewed the grant agreement and approved it as to form.
Fiscal Impacts
The Surrendered and Abandoned Vessel Exchange grant is a sum not to exceed $81,000.00 submitted to the City of San Leandro via reimbursement. Ten percent matching contribution, or $8,100, is required and the City intends to make the match through administrative costs and personnel hours.
Budget Authority
An expenditure account (597-57-177) was established and will require an $81,000 appropriation from the Shoreline Fund available cash. A revenue account (597-3607) was established to receive reimbursements from the State for the Surrendered and Abandoned Vessel Exchange Grant. Although the Shoreline Fund has a negative fund balance primarily due to debt, there is sufficient cash available to cover expenses until the grant proceeds are received. Once grant proceeds are received, cash will be replenished in the Shoreline Fund.
ATTACHMENT
• Grant Agreement
PREPARED BY: Delmarie Snodgrass, Marina Manager, Public Works