ShorelineMarina Highlights 2009 0121, 0225, 0318 & 0415

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Shoreline CAC Page 12 February 25, 2009 Meeting Highlights enterprises with the intent that the costs of providing the goods or services are recovered primarily through user charges. • The City's Shoreline Enterprise Fund has three divisions: Golf Course, Boat Harbor; and Shoreline (includes Marina Park, hotel and restaurants.) • In the Fiscal Year 2007-08, the Golf Course and the Shoreline operated with profits of $457,000 and 269,000, respectively. The harbor operations operated at a loss of $874,000; thus the Fund (cumulative of the three divisions) operated at a loss of $148,000. • In addition, there are significant debt balances as of June 30, 2009. The Golf Course Division owes the General Fund $4.2 million, while the Harbor Operations Division owes the General Fund $3.3 million for dredging and owes $3 million in CalBoat loans. Discussion ensued regarding the following: • Under Harbor Operations Division Expenditures: What are Interfund charges? These are overhead costs for maintenance, vehicles, information technology, insurance, etc. • What are CIP Charges? Those are engineering costs that are billed hourly for work on the repair of shoreline facilities and structures. • What are Services? Those are costs relating to advertising, marketing, and landscaping. • What is DBW? State of California Department of Boating and Waterworks. • Is it the City's plan for the Shoreline Enterprise Fund to operate at a profit? The City's near —term plan is to operate to break-even. The City would like to identify revenues so that any future development can pay for itself. The City is not in a position to subsidize development of the Shoreline. C. Future of the Boat Harbor. Director Bakaldin gave a powerpoint presentation which gave an overview of the San Leandro Marina Shoreline Area. • The harbor includes the marina office, docks, restrooms, fuel dock, boat launch, Spinnaker Yacht Club and San Leandro Yacht Club • The harbor opened in 1963; the harbor expanded in 1972, and the concrete docks were constructed in 1991. • There are approximately 460 berths (260 concrete and 200 wooden berths.) • Occupancy of the harbor is currently at 40% capacity • Siltation in the harbor and fuel dock is driving out larger boats. • Marina operations revenues continue to drop. • Tides and siltation are a natural process in the Bay that continues to build up deposits in the harbor and the channel making them shallower for large boats to maneuver. • Full dredging is cost prohibitive. • A less costly partial dredge to a five foot depth was approved by the City Council in December 2008 to take advantage of Federal funding to dredge the Channel.