ShorelineMarina Highlights 2010 0525

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CITY OF SAN LEANDRO CITY COUNCIL SHORELINE -MARINA COMMITTEE May 25, 2010 9:00 a.m. -10:30 a.m. San Leandro City Hall 835 East 14th Street San Leandro, California Sister Cities Gallery Room HIGHLIGHTS Committee Members: Mayor Santos, Councilmember Prola and Councilmember Starosciak City staff present: City Manager Hollister, Assistant City Manager Marshall, Community Development Director Sims, Engineering Director Udemezue, Public Works Director Bakaldin, Business Development Manager Battenberg, Facilities and Open Space Manager Pollart, Marina Supervisor Snodgrass, Senior Development Specialist Penaranda Public present: Audrey Albers, John Dilsaver, Al Fernandez, Marilyn Fong, Al Frates, Rebecca Jewell, Dave Johnson, Bob Leigh, Charles and Janet Porrill, Caryl Ann Symons The meeting was called to order at 9:00 a.m. 1. Update on the Shoreline Enterprise Fund City Manager Hollister gave an update on the Shoreline Enterprise Fund. He reported that operating expenses have increased while revenues have decreased the last two years. Accelerated General Fund principal payments totaling over $1 million were made in Fiscal Years 2006-07 and 2008-09. The City also has $200,000 in capital improvement obligations to the golf course. Given the above, the anticipated fund balance as of June 30, 2010 is approximately $300,000 which is insufficient given the current shortfall in harbor operations (including annual debt service of $600,000) and the cost of discarding the dredged material. The Committee asked if Cal-Coast, the master developer, can improve this financial situation, and contribute to the significant expenses of the harbor and it's dredging. Staff replied negatively that the master developer cannot support the harbor and cannot commit to funding dredging. City Manager Hollister explained that there are not sufficient funds for the required deadline of summer 2011 for the disposal of the recently dredged material. Mayor Santos thought that the Shoreline Enterprise Fund had $1.4 million in reserves. Manager Hollister replied that the general fund accelerated loan payments and other expenses as well as a decrease in revenues have left the fund without sufficient reserves. The Committee requested a detailed report of the Shoreline Enterprise Fund revenues and expenditures for the next meeting.