ShorelineMarina Highlights 2008 1118

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that in FY 2007-08, the Harbor Division had a shortfall of $874,000. The addition of required capital costs to continue harbor operations (dredging and improvements) would amount to a $3,388,000 annual shortfall. The harbor operations debt, as of June 30, 2008, was $6.9 million, including General Fund and CalBoat Loans. Councilmember Starosciak asked what the savings to the City would be if harbor operations ceased. Manger Battenberg replied there would be approximately $1 million in savings, as the $600,000 in GF and DBW debt service payments would continue. Interim City Manager Hollister added that there would be an additional cost to decommission the harbor. 2. Discussion Regarding Dredging Alternatives including Results of Hydrology Study Director Udemezue gave a powerpoint presentation reviewing dredging alternatives and results of a hydrology study (see attached). He stated that if dredging ceased completely, the existing harbor area would become mudflats similar to the area north of El Torito 14 to 16 years from the date of the last dredge. He further reviewed information regarding the process of siltation. His presentation additionally covered three options: I. No Dredge -resulting in the closure of the Marina and the boat launch ramp. The City would not incur any future dredging costs or capital costs, however, there would be costs to dismantle the boat harbor. II. Full Dredge -would include dredging of 310,000 cubic yards of material in 2009 and a return to the four year dredge cycle. The estimated cost for dredging over the next 8 years would be $15.2 million. An estimated $10 million in capital costs would also be required. III. Modified Dredge -would include a dredge to approximately 5 feet allowing small boats to continue to use the boat launch ramp. The 2009 dredging would be managed by the Army Corps of Engineers and the City would be responsible for disposing of the approximately 85,000 cubic yards of material at an estimated cost of $2 million. Future costs for a modified dredge to allow small boats access is estimated to be $2.2 - $3.7 million every four years. Costs to dismantle the harbor would also be incurred as the harbor in its current configuration would no longer be viable. Based on the presentation, the Committee was in agreement that the modified dredge option was optimal. Director Udemezue cited that the cost to dispose of dredge material depends upon how far the material must be transported. It could range from $24 to $53 per cubic yard. An alternative of pumping the slurry directly to Oyster Bay Regional Park was evaluated and found to be more expensive than utilizing the Dredge Materials Maintenance Site and then hauling the dry material by truck. The Committee discussed the benefits of meeting with Federal and State politicians as soon as possible to improve the possibility of the City obtaining any funding that may be available to assist in the dredging. They also suggested staff negotiate along-term disposal agreement with Oyster Bay Regional Park for 50,000 cubic yards of material every four years. Recommendation: The Committee recommended Director Udemezue's presentation be brought to the City Council including a recommendation for City staff to work with the Army Corps of Engineers on a modified dredge.