TITLE
Recommendation to adopt resolution authorizing City Manager to accept up to $9,970,000 in loan funds from the State of California, Department of Boating and Waterways; execute, implement, award, and administer the loan agreement, including the execution of any documents necessary for the implementation and administration of Phase 1 of the Alamitos Bay Marina rebuild; receive supporting documentation into the record, conclude the public hearing; and
DISCUSSION
The State of California, Department of Boating and Waterways (DBW) provides loans for the purpose of constructing small craft harbors. On March 2, 2011, DBW approved a $9,970,000 loan for Phase 1 of the Alamitos Bay Marina rebuild. Phase 1 includes the in-water and on-land rebuild of Basin 4, as well as the construction of an eelgrass mitigation area in Marine Stadium, which is required by a policy set forth by the National Oceanic and Atmospheric Administration.
The total cost of Phase 1 is estimated to be $23,700,000; however, total available funding is $14,450,000. The City of Long Beach (City) has an existing contract with DBW for a Phase 1 loan in the amount of $8,250,000, and $6,200,000 from the Marina Fund that has been budgeted for this phase. The additional $9,970,000 DBW loan would bring the available funding to $24,420,000, providing the funding needed to complete Phase 1. DBW loan terms are 30 years at 4.5 percent, and the annual debt service for the additional $9,970,000 is estimated at $606,198.
Marina slip fees will be increased to cover the debt service associated with this loan, as described in the List of Proposed Fee Adjustments - Marina Slip Fees (Attachment). The slip fee increases, which are supported by the Marine Advisory Commission, will become effective October 1, 2011. The City anticipates drawing on this loan no earlier than October 1, 2011, and the first payment on this loan will be due August 1, 2012.
On January 13, 2011, the State Coastal Commission approve...
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