COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Parks

DATE:

June 26, 2008

BOARD MEETING DATE:

July 8, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

David G. Holland, Director, Department of Parks

SUBJECT:

Amend the Coyote Point Marina Fee Schedule

RECOMMENDATION:

Adopt a Resolution amending the Coyote Point Marina Fee Schedule.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goals) 20 and 24: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. Residents accept individual responsibility for contributing to the quality of life of the County as a whole.

The proposed amendment to the Coyote Point Marina Fee Schedule contributes to this commitment and these goals by maintaining a proper relationship between costs and revenues and by assuring that those who utilize County services pay the cost of providing those services, rather than receiving a subsidy from taxpayers and thereby diverting resources from other needed programs without a source of cost recovery.

Performance Measure(s):

Increasing the Marina fees by the Consumer Price Index (CPI) annually supports the Marina environment by providing the services and amenities that our Marina berthers want. Our fees and occupancy rates fall within the median average for local marinas, albeit on the lower end. The fee increases also support viable loan relationships from which needed funds will be received to replace Dock 29. The replacement of Dock 29 will provide more desirable berth slips and is expected to increase the percentage of usable berth space filled to 85%.

Measure

FY 2007-08

Estimate

FY 2008-09

Target

Percent of Customer Survey Respondents Rating Services Good or Better

98%

90%

Percent of Usable Berth Space Filled

82%

85%

BACKGROUND:

Staff reviews the Coyote Point Marina Fee Schedule annually to adjust fees by a rate not less than the local CPI, which is a requirement for Boating and Waterway loans. These fees are accumulated in the Marina enterprise fund, separate from the County General Fund.

DISCUSSION:

Staff recommends amending the Coyote Point Marina Fee Schedule to increase the berth rental fees by 6%, which includes the 4.3% CPI change for the twelve-month period of January 2007 to January 2008 and an additional 1.7% toward meeting overall operating costs and needed capital improvements.

Staff met with Marina berth tenants in April to go over the proposed fee increases and to receive their input on amenities desired, such as a new bathroom, shower, boat ramp, and fuel dock.

The County’s Park and Recreation Commission at their June 5, 2008 regular meeting voted unanimously to recommend approval to the Board of Supervisors.

Your Board on December 18, 2007 considered and accepted the Department’s report Investigating Costs and Advantages of Private Management of the Coyote Point Marina through a Long-Term Lease or Operating Agreement. Prepared in response to the 2006-07 Grand Jury Marina report, the Report made recommendations, one of which was to consider and implement, where possible and practical, cost-saving, revenue-enhancing, and management methodologies to improve Marina finances, services, and overall management during a three year period. By way of comparison, the consultant for the Report had recommended a 15% increase in the berth rental fees to facilitate capital improvements.

In accordance with State law, the increased fees do not exceed the cost of providing services. If approved the Coyote Point Marina Amended Fee Schedule would become effective on August 1, 2008.

FISCAL IMPACT:

The estimated increase in revenue as a result of the 6% increase in berth rental fees will be approximately $30,000. This increase will help offset the Marina’s increasing operational budget and capital improvement needs. There is no Net County Cost.