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File Number: 16-699 <br />$556,245. At that same time, the chamfers and federal channel were also fully dredged, with <br />the costs associated with the federal channel, $587,584, paid for by a federal grant. Disposal <br />costs were greatly reduced at that time because the City off-hauled to Alcatraz. In 2001, the <br />federal channel was again dredged and paid for by a grant of $1.5M. Off-hauling of the <br />materials was done to Oyster Bay Regional Park and Metropolitan Golf Course, at a cost of <br />$1,368,372. In the five short years between the 1997 and 2001 dredge events, even though <br />the same amount of material was removed, the costs to dredge tripled. <br />Discounting the debt service associated with several Cal-Boat loans that were obtained for a <br />variety of Marina projects, harbor operations have for the most part been relatively cost <br />neutral, taking in revenues that covered expenditures. A number of deferred maintenance <br />projects exist, but have not been undertaken due in part to the proposed Monarch Bay <br />Shoreline Project and also the lack of funds identified for on-going dredging. In fiscal year <br />2010, the last year that estimates were done, it was estimated that $10 million in capital <br />improvements were needed for the 462-slip harbor. Dredging costs that would keep the full <br />harbor operational at that time were estimated at $1.5 million to $2 million annually. Current <br />occupancy of the harbor is at approximately 24 percent. <br />In 2005, the City began exploring a comprehensive development at the Shoreline in part to <br />turnaround the failing Shoreline Enterprise Fund and boat harbor. A Master Developer <br />approach was suggested for the landside development. The development objectives include <br />no General Fund revenue would be used to subsidize the development. The hope was that <br />lease revenue from the development could assist the City in redeveloping the boat harbor with <br />much needed capital improvements as well as on-going annual funding of approximately $1.5 <br />million for dredging. <br />In 2008, the City entered into an Exclusive Negotiating Rights Agreement with Cal-Coast to <br />develop 40 acres of the City’s Shoreline. Following a two-year process with the Shoreline <br />Citizens Advisory Committee (CAC), Cal-Coast presented a plan to the City Council for the 40 <br />acres of landside development. The City Council requested that staff and Cal-Coast work with <br />the CAC to evaluate the feasibility of future harbor basin improvements as part of the <br />development project. Using the information from the Harbor Basin Alternatives Study <br />performed by ESA in 2011, the CAC evaluated the feasibility of three options for the harbor <br />basin - a Marina Park Alternative, an Aquatic Park Alternative, and a Nature Park Alternative. <br />After consultation with the Bay Conservation and Development Commission (BCDC), the <br />alternatives were further refined with the assistance of CH2MHill, an engineering company. In <br />2011, the CAC revised its recommendation to the City Council so that the City should <br />maintain the harbor for as long as feasible, then move to redevelopment of the harbor should <br />additional funds (whether for dredging or deferred maintenance) not be identified. Given that <br />no new funding has become available for dredging and other capital needs, it is appropriate at <br />this time to begin planning for the decommissioning of the marina boat harbor. <br />Analysis <br />If authorized, the consultant is able to commence work immediately. This work, which will <br />establish the decommissioning process and the anticipated costs associated with demolishing <br />the Marina, is critical to the City’s negotiations with the master developer on the proposed <br />Development Agreement for the Monarch Bay Shoreline Project. This Plan will also outline the <br />Page 2 City of San Leandro Printed on 2/28/2017 <br />144