Subcommittee advances ordinance to appropriate state loan funds for Marina Yacht Harbor renovation

The Budget & Finance Subcommittee advanced an ordinance recommending Board approval of state loan funds to renovate the West Basin of the Marina Yacht Harbor.

Katie Petruccioni of the Recreation and Park Department asked the committee to approve a supplemental appropriation she described as "$6,900,000 which is the final installment of a 23 and a half million dollar loan that the city is receiving from the California Department of Boating and Waterways to renovate the West Basin of the city's Marina Yacht Harbor." Petruccioni said the project will replace docks, slips, gangways and gates; upgrade utilities; perform harbor dredging; and install a floating breakwater. She said the project has been in development for nearly a decade, contractors have been engaged and design is complete.

Deborah Newman, the budget analyst, noted the ordinance text would appropriate $6,995,000 to complete a $23,495,000 loan at a 4.5% interest rate. Newman summarized projected loan servicing that anticipates increasing annual payments up to $1.4 million over 35 years and said Recreation and Park plans to repay the loan from Marina Yacht Harbor operations. She also noted the Board previously approved a 37% increase in berth rental rates projected to begin when the project completes; the consultant and analyst materials show projected cash flows supporting repayment and recommended approval.

The committee opened public comment; none spoke. Members moved and seconded the item and forwarded the ordinance with recommendation to the Board of Supervisors without objection.

The transcript contains inconsistent figures: the clerk—9s item description and the budget analyst use $6,995,000 while the project presenter referred to $6,900,000. The committee record forwarded the ordinance as presented to the Board.