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Recommendation to authorize City Manager to execute a Memorandum of Understanding between the City of Long Beach and the Long Beach Yacht Club, a non-profit public benefit corporation, establishing a Management Agreement for the long dock adjacent to the clubhouse, located at 6201 Appian Way. (District 3)
DISCUSSION
Through the Department of Parks, Recreation and Marine, Marine Bureau, the City of Long Beach (City) manages a long dock located adjacent to the Long Beach Yacht Club (LBYC) clubhouse in Alamitos Bay Marina. Nearly all of the activity on the long dock is related to functions of the LBYC, since it is not easily accessible for other public uses. As such, there is minimal revenue generated from the long dock, estimated at less than $1,000 per year.
The rebuild of the Alamitos Bay Marina is scheduled to begin in 2008. This rebuild will be accomplished in phases to minimize the temporary vessel movement and relocation needed for the project. Each phase will require the relocation of vessels measuring many thousands of lineal feet during construction of the phase. This will require the construction of long docks during the first phase in order to create vessel-holding spaces for subsequent construction phases. One of these docks will be the extension of the City-owned long dock adjacent to the LBYC, which will add about 400 lineal feet to the dock. This extension cannot be completed without the rebuild of the existing long dock, as this existing long dock is showing serious structural deficiencies due to its age.
Once it is rebuilt, the long dock will become home to the fleet of Catalina 37 vessels used by the LBYC for match races, such as the annual Congressional Cup. These vessels are currently docked in Basin 4, free of charge, and relocating them to the long dock will create a new revenue potential to the City totaling over $63,000 per year once the marina rebuild is complete. Once the rebuilt and extended long dock is no longer needed for the rebuild of the marina, it would benefit the City operationally and financially to allow the LBYC to manage the entire long dock and share in the revenue generated from the dock. The LBYC is in a better position to increase revenue from the use of the dock, as it can use the dock for member uses, as well as club-related events, all of which have revenue potential.
The following are proposed terms of a Memorandum of Understanding (MOU):
. The City will rebuild and extend its long dock as part of the rebuild of the Alamitos Bay Marina; this is included in the first phase of the rebuild project.
. The long dock will include five 40-foot fingers on the northernmost section of the long dock to berth the 11 Catalina 37s operated by the Long Beach Sailing Foundation.
. Upon completion of the long dock extension, the LBYC will control the berthing area for the Catalina 37s for the life of the dock or the duration of the LBYC lease, whichever comes first.
. Upon completion of the current long dock rebuild, the LBYC will manage the long dock to the point of the current (pre-rebuild) long dock.
. The City will use the new long dock extension to berth vessels during the rebuild of the Alamitos Bay Marina.
. Upon completion of the rebuild of the Alamitos Bay Marina, or the determination by the City that the long dock extension is no longer needed, whichever is earlier, the LBYC will manage the entire long dock.
. The LBYC will be responsible for the maintenance of the long docks that are managed by the LBYC under this agreement.
. The City will notify the LBYC if it needs any portion of the long dock under LBYC management, at least one month in advance, and the LBYC will give the City the use, unless an event has been scheduled by the LBYC.
. Throughout the term of the MOU, the LBYC will remit 50 percent of the gross revenue generated from activity on the long dock on a quarterly basis, by the 20th of the month following each calendar quarter.
. The LBYC will obtain prior City Manager approval before renting any portion of the long dock for a commercial enterprise.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on September 18,2007, and Budget and Performance Management Bureau Manager David Wodynski on September 24,2007.
TIMING CONSIDERATIONS
City Council action is requested on October 2, 2007, in order to execute the MOU between the City of Long Beach and the Long Beach Yacht Club.
FISCAL IMPACT
Funding for the Alamitos Bay Marina rebuild project will come from a marina loan from the State Department of Boating and Waterways and funding from the LBYC under the clubhouse lease extension, which will accrue to the Tidelands Fund (TF); the long dock rebuild is included in this larger project. Slip revenue of approximately $63,000 per year will accrue to the Tidelands Fund (TF) in the Department of Parks, Recreation and Marine (PR) from slip space vacated by the Catalina 37 fleet.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE
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PATRICK H. WEST |
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CITY MANAGER |