Agmt 2016 California State Division of Boating and Waterways

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9/18/2015 Letter of Intent for Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2015/2016 Agency: City of San Leandro Marina Application: Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2015/2016 Letter of Intent FOR OFFICE USE ONLY: Version # APP # 702324 Agency Type and Area of Responsibility (AOR) The City of San Leandro owns and operates a 465 berth recreational marina set on the east side of the San Francisco Bay. Statement of Need Statement of Need The City of San Leandro Marina owns and operates a 465 berth recreational marina. Various issues arise commencing in a vessel being abandoned, such as death of the owner, non-payment, or a vessel dropped off in the marina or shoreline. Currently there are two vessels that have been liened and authorized for sale by the Department of Motor Vehicles (DMV). The vessels went up for lien sale in June 2015 and were not sold. The vessels are on the most current list to be destroyed and disposed. The City of San leandro Marina has used all funding from the AWAF grant ending January 2016. In addition, there are three vessels that have been submitted to the San Leandro Marina for the VTIP program. Currently we do not have enough funds in the current VTIP grant to remove all of the vessels. Recently we have received several calls for the VTIP program from outside sources. The City of San Leandro is in the process of a shoreline development with the expectation to close the marina in the future. The estimated start date of construction is March 2017. We anticipate many boats will be abandoned or submitted for the vessel turn -in program over the next 2-3 years. The City does not have the funds in the budget to pay for destruction and disposal of vessels. Cost estimates for abandoned boats range from $2000 for smaller easy to remove vessels to $12,000 for larger vessels that may have sunk or are in severe decay. For purposes of cost estimation, I have used a mid-range price of $6,000 for 15 abandoned or liened vessels. I have used a price of $1000 for 20 vessels over the next 2 years for vessels that are turned in. I have attached the bid sheet from the AWAF project 2014. The City's municipal code Title 1, Chapter 5, section 200 states: expenditures in excess of $5,000 are subject to competitive bidding. Plan of Action From 2004 through 2010 an average of two vessels per year were destroyed and disposed. Using the awarded AWAF grant #C7701015 for period 1/14 through 1/16 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 and we will not be able to secure such rates in the future. It is estimated between the abandoned, liened, and turned in vessels the San Leandro Marina will have an increase in activity over the next two years. Attached is a copy of the lien and disposal procedure. Procedures are subject to change per the grant agreement if applicable. The City of San Leandro Marina will commit to the 10% contribution in the form of administrative costs, personnel hours, and storage. Please consider awarding the Surrendered and Abandoned Vessel Exchange (SAVE) Grant to the City of San Leandro Marina. If you have any questions, please contact me at (510) 577-3490. Page: 3 of 10