Fiscal Responsibility

By Lisa Fernandez

Stop spending money on unsound projects, Develope a plan with California Department of Boating and Waterways to pay the $16 million debt, Proceed with the development of Oyster Point Marina, Proactively seek grants from funding sources to pay for capital projects, Develop an employee incentive program, Eliminate General Manager's unreasonable and expensive perks, Eliminate Harbor Commissioner's benefits.

The District has budgeted $840,000 for construction of a new restroom on the first floor, with an office on the second floor. Spending close to a million dollars for a restroom is financially irresponsible. The current restroom could be renovated and improved for approximately $100,000. Additionally, the Harbor District could apply for grant funding from the California Department of Boating and Waterways for a self-contained floating restroom, which could be located next to the dock.

2) STOP GIVING AWAY REVENUE-PRODUCING PROPERTY FOR DEVELOPEMENT.

In 1998, the Harbor District entered into a long-term lease, at $1,250 per month, with a private developer to operate the RV Lot. The developer spent approximately $750,000 to develop the lot and subsequently, the overnight fees to members of the public skyrocketed from $15 to over $38. The Harbor District, being a public agency, should have kept the RV Lot as a public facility instead of it's current status as a private lot. By retaining the RV Lot, the Harbor District could have kept the approximate $27,000 in annual revenue it was producing. With the 25 year lease of public lands to a private developer, the public loses out. Additionally, the Harbor District could have received grant funding to develope the RV Lot and retained its use as a public visitor-serving facility.

In 1998, the Harbor District received four proposals to develope the open space adjacent to the El Granada Post Office. Instead of pursuing the most financialy feasible development, the Harbor District voted to allow a local developer to construct an 11,000 square foot two-story commercial building on the site. The Harbor Commissioners entered into a lease with a local developer for only $1,500 per month or $18,000 per year. The Harbor District should have sought current market values rather than lowering their lease fees to their favorite local developer.

3) PURSUE DEVELOPMENT AT OYSTER POINT MARINA

Oyster Point Marina carries three-quarters of our debt (12 Million Dollars). If the Harbor District could get income producing hotels and other sound ventures at this site, it could go along way to get Oyster Point Marina back on its feet. There are fewer restrictions on building at this marina located near an industrial park with no residential area surrounding it. Whereas there are many restrictions and environmental issues at Pillar Point Harbor due to its location, Oyster Point Marina could be developed much faster (with public input of course!).

The Harbor Commissioners recently reduced its lease rates for the Hilton Hotel from 5% to 3%. This gift of public funds has still not been addressed adequately. This reduction of lease fees could have developed a precedent for future development, as it will be difficult to get 5% from future lessees. The Harbor Commissioners should revisit the Hilton Hotel lease if at all possible.

4) APPLY FOR GRANTS, GRANTS, GRANTS!

The Harbor District needs to have a grant writer to apply for grants from the California Department of Boating and Waterways, California Regional Waste Management Board, Coastal Conservancy, California Air Quality Control Board, Caltrans, California Resources Agency and other public and private funding sources. Funding is available and grant funding could help with capital improvements that the Harbor District can't afford.

5) INCENTIVE PROGRAM FOR THE EMPLOYEES WHO CAN SAVE THE HARBOR DISTRICT MONEY

The employees at both facilities have great ideas on how to save money. They know where the money is being spent and how it be can spent more wisely. For instance, the Harbor District hired a Public Relations consultant for $25,000 per year to do a newsletter for the District. This could have easily been done by employees who volunteer their services.

6) COMMITMENT FROM THOSE WHO WISH TO DO BUSINESS WITH THE DISTRICT

All too often the District is asked to foot the bill for improved facilities to accommodate a firm that wishes to do business with the Harbor District. Before the Harbor District spends hundreds of thousands of dollars for infrastructure improvements, the Harbor District needs a commitment from those individuals. They should pay for the infrastructure improvements and the Harbor District could reimburse them through ticket sales until the facility is paid off in full. This will encourage those firms to promote their venture, and take seriously the need to succeed.

7) DEVELOP A PLAN TO PAY OFF THE DEBT WITH THE LARGEST CREDITOR

The Harbor District needs to negotiate with the Department of Boating and Waterways, which carries the majority of the Harbor District's debt (16 Million Dollars), and see if the Harbor District can meet the payments or restructure them. With sound financial practices and commitment from the Commissioners, we hope to develop a plan that will be mutually beneficial to both parties and the public.