ShorelineMarina Highlights 2012 0710

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City of San Leandro Meeting Date: September 17, 2012 Minutes File Number: 12-437 Agenda Section: CONSENT CALENDAR Agenda Number: 8.C. TO: City Council FROM: Chris Zapata City Manager BY: Mike Bakaldin Public Works Director FINANCE REVIEW: Not Applicable TITLE: ACCEPT: Shoreline-Marina Committee Highlights of July 10, 2012 CITY OF SAN LEANDRO CITY COUNCIL SHORELINE -MARINA COMMITTEE July 10, 2012 4:00 p.m. -5:30 p.m. San Leandro City Hall 835 East 14th Street San Leandro, California Sister Cities Gallery Room HIGHLIGHTS Committee Members: Vice Mayor Gregory, Councilmember Prola, and Councilmember Reed City staff present: City Manager Zapata, Public Works Director Bakaldin, Business Development Manager Battenberg, Facilities and Open Space Manager Pollart, Marina Manager Snodgrass Public present: Terry Breese, Chris Crow, Al Fernandez, Robert Fox, Tom Miller Councilmember Prola called the meeting to order at 4:02 p.m. 1. Update on Shoreline Enterprise Fund Public Works Director Bakaldin provided the Committee Committee with an overview of the Shoreline Enterprise Fund, (see attached spreadsheet). He explained key changes in revenue from City of San Leandro Page 1 Printed on 9/11/2012 File Number: 12-437 previous years in the three fund divisions, Golf Course, Harbor Operations, and Shoreline. Overall the cash balance at the end of the year is positive. · Golf Course division received less revenue mainly because of a decrease in rounds of play and customers using the internet to prepay for rounds at a lower cost. · Harbor Operations: The Harbor is still in operation and has increased rates to keep up with inflation. An increase of 5% has been implemented each of the past two years. · Shoreline: The restaurants and hotel are the main revenue sources. Costs related to Marina Park, parcourse, and land based landscape medians, lighting etc., are charged against this division. The development project consultant costs are also budgeted in this account. Discussion included clarification that the fund is currently only paying interest on the General Fund loan while principal and interest are paid on the Department of Boating and Waterway loans of which three are at 4.7% and one is at 4.5% interest, wi-fi at Monarch Bay Golf Club which is handled by American Golf Corporation, the current number of liveaboard berthers which is 32, and that the planned development will address sea level rise. 2. Review of Shoreline Leases Manager Battenberg gave a brief overview of the Shoreline leases which are deposited into the Shoreline Enterprise Fund along with Transit Occupancy Tax revenue from the Marina Inn. Discussion included information that annual adjustments in the leases are handled by a base plus percentage of revenue formula, clarification that a member of the Spinnaker Yacht Club is the chair of the Citizens Advisory Committee and therefore knowledgeable on the proposed development, the proposed transition from a traditional marina to a hand powered water craft recreational facility, an update that the Marina Inn has requested an extension to their lease and that the El Torito restaurant was not impacted by its parent company’s bankruptcy. The Committee shared their desire that the development start as soon as possible, which could be as early as 2015. 3. Update on San Leandro Shoreline Recreation Projects Manager Pollart gave a PowerPoint presentation of the San Leandro Shoreline Recreation projects. Highlights included: · The Par Course renovation with Measure WW funds. · Repainting and anti graffiti coating in the interior of the restrooms · Luster Knight Memorial bench and fountain · Dog Park; and · Wood chips in the medians. Future projects include: renovation of three large rental areas at Marina Park (Seagull, Mallard, and Otter) with permanent shade structure; Invasive weed removal in the marsh lands and Heron Bay Kiosk sign (both paid by Heron Bay Development homeowners association assessment). City of San Leandro Page 2 Printed on 9/11/2012 File Number: 12-437 Discussion included the challenges re: parking at Heron Bay; Spartina work to be funded and completed by the Coastal Conservancy; the Coastal Cleanup scheduled for September 15, 2012; activity at the dog park; an upcoming project to renovate the Marina Park irrigation system schedule to start in November 2012 which includes water saving features. 4. Discussion of Additional appointments to Shoreline Advisory Group Councilmember Prola proposed to add three more members with qualifications in design or experience in architecture to the new Shoreline Advisory Group which is comprised of 21 members of the former Shoreline Development Citizens Advisory Group. The process to add the three members will be in the same format used with the original group and the Mayor will evaluate the candidates with information being forwarded to the Shoreline-Marina Committee members for their information. The announcement of this opportunity will be handled by a Press Release to be distributed in September. Discussion included the scope of the Shoreline Advisory Group’s mission which is to provide input on development items that may come up and stay abreast of the project as it moves through the review and permitting process. 5. Public Comments Robert Fox asked where the financing is coming from for the development. Manager Battenberg answered that Cal-Coast, the developer, is financing the project and no City support is planned. Chris Crow asked if the sunshades are anti-fading. Manager Pollart answered yes the sunshade will be anti-fading. He further stated that the dog park is new and the ground is not comfortable for dogs, especially little ones. He would like to see grass like other dog parks have and recommended working with the Kiwanis Club, which is looking to sponsor a park. Manager Pollart added that the City is working with the Kiwanis Club on numerous ideas and that their interest is in planting 100 trees. Al Fernandez stated that he has a small Chihuahua and dust and dirt gets in his eyes at the dog dog park. He also stated that the City should erect signs to inform the public to pick up after their dog. He further shared that kids throw rocks around the boat launch which is problematic for tires. Manager Pollart shared that the Recreation Department has a ranger program that informs people of park rules and to call the Police Department when issues arise. Tom Miller asked if the revenue from the hotel falls under the Shoreline Enterprise Fund in the rents and concession section. Manager Battenberg answered yes. 6. Committee Member Comments Vice Mayor Gregory would like to see fiber optics installed at the shoreline similar to what is proposed on Estudillo Avenue. Staff responded that high speed internet service will be part of the new development and hopefully, the fiber optic loop will be expanded with City of San Leandro Page 3 Printed on 9/11/2012 File Number: 12-437 partial funding from an Economic Development Administration grant. 7. Adjourn Vice Mayor Gregory adjourned the meeting at 5:30 p.m. City of San Leandro Page 4 Printed on 9/11/2012 City of San Leandro Shoreline Fund (597) Fiscal Years 2005-06 through 2012-13 (In 000's) Actuals Actuals Actuals Actuals Estimated Estimated 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Beginning Cash Balance $ 1,399 $ 1,458 $ 798 $ 557 $ 155 $ 32 Golf Course Revenue: AGC Rent & Supplemental 987 980 913 862 822 824 AGC -Capital Improvements -121 57 52 5 1 5 1 Interest Income 51 29 5 4 -1 Cell Tower ---26 3 6 4 1 Total Revenue 1 ,038 1 ,130 975 944 909 917 Expenditures: Operations 100 100 65 69 6 0 6 5 Internal Service Charges 17 16 53 55 5 5 5 5 Capital Improvements -AGC --242 ---Debt 308 308 307 308 308 197 Transfer to CIP Fund ---309 252 102 Total Expenditures 425 424 667 741 675 419 Net Income/(Loss) $ 613 $ 706 $ 308 $ 203 $ 234 $ 498 Harbor Operations Revenue: Berth Rentals 646 563 543 575 566 600 Fuel Sales 47 19 29 33 2 3 3 0 Utilty Charges 28 26 28 35 2 8 2 5 Card Key Fees 2 2 1 1 1 1 Boat Launch Fees --17 15 1 4 1 5 Finance Charges 32 32 33 37 6 3 1 Interest Income ------General Fund Loan Proceeds ------Other -14 -1 1 1 Total Revenue 755 656 651 697 639 703 Expenditures: Operations 635 547 456 478 459 471 Internal Service Charges 313 314 107 139 113 121 CIP -Annual Dredging Maintenance --1 ---CIP -Channel and Berth Dredging 8 9 ----CIP -Marina Shoaling Study -26 ----CIP -Rebuild Fuel Dock ------CIP -DMMS Sediment Removal --5 ---Debt 583 1 ,042 584 558 537 463 Transfers Out -154 ----Total Expenditures 1 ,539 2 ,092 1,153 1,175 1,109 1,055 Net Income/(Loss) $ (784) $ (1,436) $ (502) $ (478) $ (470) $ (352) C:\Documents and Settings\mbakaldin\Local Settings\Temporary Internet Files\Content.Outlook\ZFO2140S\ShorelineIncomeStatement.xlsx City of San Leandro Shoreline Fund (597) Fiscal Years 2005-06 through 2012-13 (In 000's) Actuals Actuals Actuals Actuals Estimated Estimated 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Shoreline Operations Revenue: Rents & Concessions $ 414 $ 331 $ 264 $ 303 $ 377 $ 290 Transient Occupancy Tax 344 310 263 249 302 258 Shoreline Business Association 16 16 14 13 1 3 1 3 Interest Income 16 1 ----Other ------Total Revenue 790 658 541 565 692 561 Expenditures: Operations 459 433 443 517 407 490 Internal Service Charges 68 58 113 149 135 136 Monarch Bay Promotions 15 28 23 22 2 8 2 5 CIP -Advanced Planning 4 10 7 4 9 -CIP -Neptune Bridge Protection ------CIP -RIP RAP Repairs 14 59 2 ---Debt ------Transfers Out ------Total Expenditures 560 588 588 692 579 651 Net Income/(Loss) $ 230 $ 70 $ (47) $ (127) $ 113 $ (90) Net Change to Cash Balance $ 59 $ (660) $ (241) $ (402) $ (123) $ 56 Cash Balance End of Year $ 1,458 $ 798 $ 557 $ 155 $ 32 $ 88 Outstanding Debt: Cal Boat Notes $ 2,963 $ 2,804 $ 2,637 $ 2,462 $ 2,281 $ 2,091 General Fund Loans 8 ,312 7 ,648 7,476 7,289 7,106 7,106 Total $ 11,275 $ 10,452 $ 10,113 $ 9,751 $ 9,387 $ 9,197 Notes: AGC Capital Improvement Commitment -Balance as of 2011-12: $265k. The balance is tranferred to a CIP Fund in Fiscal Year 2012-13 and is included in the ending balance in Fiscal Year 2011-12. 2012-13: Estimated based on adopted budget. Prepared By: Finance Department Sr. Accountant C. Galvin 07/07/12 C:\Documents and Settings\mbakaldin\Local Settings\Temporary Internet Files\Content.Outlook\ZFO2140S\ShorelineIncomeStatement.xlsx REVIEW OF SHORELINE LEASES JULY 2012 G:\OBD\Marina\ShorelineFund\Lease Revenue & Terms 2006-2012.xlsx Calendar Year Lease Revenue 2005 2006 2007 2008 2009 2010 2011 El Torito 1 15,888 1 21,811 1 27,562 1 31,079 1 32,657 1 24,131 1 34,104 Horatio's 1 59,092 1 70,972 1 73,098 1 58,524 1 34,395 1 37,048 1 25,242 Marina Inn 1 31,924 1 35,248 1 55,593 1 51,380 1 07,943 1 07,530 1 29,485 American Golf Corp. 7 54,811 7 84,583 8 92,870 8 48,547 8 20,688 7 50,000 7 55,806 1,163,720 1,214,620 1,351,130 1,291,538 1,197,692 1,120,719 1,146,648 Lease Information El Torito: $1,200/month base rent plus supplemental based on 4.5-5% of sales 1969 lease extended in 2000 to expire in 2019 Horatio's: $500/month base rent plus supplemental of 1.5% of sales under $550k; 2% of sales under $650k; 2.5% of sales over $650k; 3% of sales over $700k 1997 lease expires in 2027 Marina Inn: $4,000/month base rent plus supplemental based on 3% of room rentals and 5% of concessions and other sales 1984 agreement expires in 2034 American Golf Corp: $6,250/month base rent plus supplemental base on 28% of green fees & cart rentals and 6% of food & shop sales Supplemental percentage increases to 30% in 2014 1997 lease expires in 2024, includes two 5-year extensions San Leandro Yacht Club: $200/month 1974 lease amended in 2001 to add month-to-month terms Spinnaker Yacht Club: $250/month 1971 lease amended in 2007 to expire in 2015 AT&T/Cingular: $3,442.50/month adjusted 3% annually 2005 lease expires in 2015 Council policy directs funds for golf capial improvements