tv [untitled] July 4, 2012 8:30am-9:00am PDT
show that we were under market, and therefore, it needed to be looked at. at that point in time, redevelopment was a source of contention in the state legislature, and we would direct stopping all new interests. we never got to the point where the port was now picking up the ball and going with it. i want to say on behalf of staff how much we appreciate your willingness to take us all on board. we are committed to doing a good job. thank you very much. >> thank you. >> the good news is, we're getting the marina back. it is a beautiful facility. we are thrilled. we do manage our maritime assets well at the port, we want to continue to do so. the facility will be set up separately in away from the rest
of the operation. jim and his crew have done a good job and we want them to continue to have success, set them up for success, going forward. the top news has to do with the finances. the facility, correctly, as we have budgeted it, going forward, has an $800,000 a year deficits in 2012-13. most of the revenue at the facilities are from berth rents. we were concerned, on an operating basis, that the facility was in the red, also concerned that there was no mechanism for the capital improvements, for the bcdc improvements, and for ongoing improvements at the facility ages, to enhance these facilities. the port knows -- if we know anything, if the do not spend money on maintenance, you have to defer to capital needs. that is something we want to
avoid with this facility. we want to keep it fresh and updated but there is no financial mechanism in place that would do that. after talking to redevelop the staff, -- redevelopment staff, when we first heard the we were taking over -- and i have to say, this transfer occurred in february. we found out in march that suddenly the facility would be on report control, on top of the america's cup, warriors, and a lot of other things, and we are suddenly taking on a 700-slip marina -- and we are thrilled about it -- but it is coming down the pike quickly. if you told us, walking in the door, we should have raised rates years ago, but we did not do so. the pork hired, through the
city's real-estate division, a certified real-estate appraisal company. he did it a rate analysis to estimate the rental values for marinas located in the day -- bay. they compared 12 marinas in four counties. the praise of verified the 2010 opinion that rates were significantly below market. the appraisal concluded that south beach harbor is "one of san francisco's premier harbors and is significantly underpriced." the details are in the commission packet. this slide shows you a lot of numbers and details, but essentially, the white barn is the current south beach harbor rate. the orange pabar is post-
construction rates at the san francisco marina. they are doing renovations. those were the new rates approved by the court supervises most recently. the green bar is the market high for like arenas in the bay, going forward. we met last week with the south beach harbor community at the south beach harbor yacht club. we appreciate your hospitality. a number of the members were surprised at this data, quite frankly, and were concerned at the speed it was coming to them. we were surprised at the speed that it was coming to us. the meeting was frank and open. it was a difficult -- in a way, a message to send. the facilities needed revenue enhancement to continue its operation.
and to fund capital improvement. we met again this morning. port staff met with members of the tenants association and had a vigorous dialogue regarding revenue enhancement. ports that is setting up meetings for the next couple of weeks to continue this dialogue going forward. in the staff report, recommended coming back to the port commission in july with firm recommendations on different scenarios that would help us to offset the deficit and fund capital plans. after conversations with south beach tenants, we think that that is a bit ambitious, and we can come back to the commission in august but firm recommendations for implementations with new rates of october this year, so we will start managing the facility in
the black. there are other issues related to better management for parking, the 200 parking strips across from at&t park, where they can be better managed and provide financial opportunities for the port, making sure that the voters have their own slips. so, i know that it is a lot of data and we have a lot of areas we're looking forward to. we are committed to working with the south beach community over the next 60 days to come up with scenarios that we think makes sense for the ongoing future of the south beach marina. with that, i am sure that there is public comment. we will be glad to answer any questions you have. >> public comment. steve loren's?
>> i am a birth holder at south beach. i am going to talk about the elephant in the room that no one is talking about. this place is designed to be below market rates. that is why i am there. i waited seven years to get a berth. i waited seven years because it was below market. i understand the logic of the moneys and everything, but it was designed that way from the redevelopment agency way back when. that is why there is a 1700 person list. you go to that the -- you go to market rates, that list it will be like ice cream on a summer's day. as suggested, i will have to sell my boat or find a partner to help me pay for it. even without looking at parking,
it is a 78% increase over three years. i am not a unique guy. in typical. that is all i have to say. >> thank you. christine olson? >> good afternoon, commissioners. my name is christine olsen. i am here representing myself. i have owned a home in san francisco for 25 years. i have had boats at south beach harbor for 25 years. i understand it is being described as a premier destination harbor. well, it was not like that 25 years ago. believe me. it has changed tremendously. as the gentleman that you just heard said, it was designed for people with lower incomes to be able to afford this place.
now, i have also belonged to the south beach yacht club for almost 25 years. i have several concerns about the report. the first thing is the short timeframe. i know that that was addressed, somewhat, but like so many of the other residents in the harbor, the first that i heard about this possible increase and possible charge for parking added on was last thursday, at a meeting that was held at south beach. what i understood at that time was that they wanted to have a decision made in july for implementation in october. i understand that that has been pushed out a little bit, but still, that is a very short timeframe for the people that hold those slips.
i am also really concerned about what the criteria are de that they used to compare the charges for slip rentals. certainly, it is not a random sample. certainly, it is not a comparable harbor. i would like that to be looked at again, very carefully. another thing in the report is parking abuses listed. i do not know what those are. when i asked about that at the meeting last thursday, i was told that a company has been hired to identify the abuses, but i understand the same company has been hired to correct the abuses, which seems like a real conflict of interest. anyways, those are just a few of my concerns. lastly, i would ask the commissioners to look at the
people at south beach, the people in the harbor and in the yacht club, and of what they have contributed to that area. that would be one example. sailing programs for young children, including disadvantaged children, would be another example. a lot of things have been contributed by volunteers. thank you very much. >> robert olson? >> good afternoon, commissioners. my name is robert olson, homeowners in san francisco. 25 years, balboa terrace, west of twin peaks, and a 25 year resident at the harbor, slip holder in a 30 foot slipped, one of the smaller ones there. one of the things that i guess i am concerned about is, as
mentioned previously, the very short time fuse that was given to notify us in the harbor. last monday, one week ago, yesterday, was when we first heard that anything was happening in the meeting that was going to present to us where we were going and what the rates were going to be, with dramatic increases, which were three days later, at the harbor. at that meeting it was presented as a pretty much -- this is the way it will be, rather than having a dialogue between harbor residents and port authority. in looking further into it, the tattersall survey that i believe the you have, there is a two page graphic that identifies various harbors around the area. i did my own very brief survey, having a 30 foot slipped, and questioned during the meeting as to what harbors were included
in there. that information was not available. the comment was that it would be available online in a day or so. further probing was -- is there anyone south of here included? oyster point and on down the bay. the comment was finally made that there were not. looking at who was included, there were places along harbor front, across the bag, and sausalito. for a san francisco resident to go across the bay, we all know that it is a hassle to deal with the bridge. i took a look at what was happening down the bay. based upon a 30 put slip, the current rate is $8.70. proposals, as they stand, go from top and in a year-and-a- half to $11.70 per foot, up to
$16.50 per foot. almost a doubling, as you did say. over in alameda, they include parking in all that i looked at , 30 feet there is $7.30 per foot, which is over $1 less than what it is now at south beach. looking at of it -- oyster point, $7.33 per ft.. high of the arena, -- coyote arena, the rates are not that much higher around here. in fact, they are much lower and should be included in the survey rather than a cherry pick list. >> thank you. lesley? >> good afternoon.
my name is leslie hennessey. thank you for the public comment. i am a voter in the south beach arena and am now the new president of the tenants' association. we are up to 260 members of the seven people in the harbor. we just heard about this, literally, 30 days to 45 days ago. of course, we have a lot of problems and i guess one of the biggest things that we do not have right now is the time to go through, record them, and have larry bring it up to me now. basically, the california department of boating, they have a certain number of millions done by san francisco redevelopment. those funds have never been finished or finalized. the documents do state that if redevelopment does stand, there
has to be a notification. we do not even know if that has been done. we have major questions about unlawful transfer of the harbor to anyone. we also have problems with the timing, as you have heard. most specifically, rates. we just looked at the harbor ourselves and we saw a tremendous amount of low hanging fruit that is not being used by the harbor. people coming in with cruise ships who are not paying anything. people coming in the cruise ships who are not charging for passengers. last but not least, what do i have? one minute? in islip, 38 feet, i have -- in my slip, 38 feet, i have to pay. suddenly 45 days ago at your
health club they tell you that your rates are going up 42%, i think he would have just as seriousl a pause as to why and where it was going. we have met with peter. he has done a great job. we appreciate that. we will have an ongoing meeting with him every few weeks. we see eye to eye on a lot of things. but we have got to keep in mind that there are a tremendous amount of working-class people in the harbor. i would say that there are only two slips that have very wealthy people in them. the others barely make the rate right now. we spoke to one of the gentleman at the southeast yacht club. he told us that with his fixed- income, he will have to leave if there is this kind of income -- increased. this man who derives the fun and
enjoyment in his life there. we all do. ba>> paul of libya? >> good afternoon, -- paul olivia. >> good afternoon. the southeast yacht club is a volunteer yacht club with over 600 members went to tell the bay area association of disabled members. i am one of the license holders at the yacht harbor. i am one of an estimated 5000 to 10,000 people that uses south beach as the primary way that we get out and enjoy the bay. i learned to sail on the bay to the sailing school there.
i became an instructor out of south beach. i bought my boat and put it at south beach. i lost myself -- san francisco chronicle column writing from my boat. it is the center of and my principal choice for recreation. i do not do a lot of other things than boating. the majority of voters that i know that are retired or on a fixed income, i afford my boat by having a partnership with other individuals. we pay extra taxes to the city for not only the proprietary interest, but the slip, and we also fund the california boating waterways through extra fees. we also pay to support local businesses through the amount of time that we spend it down in the area. second, boating is a regional
activity itself. at least half of our members come from outside a san francisco. in terms of the racing, it is three-quarters of the people coming from outside san francisco. as far as parking, loading generally requires and year, what -- boating generally requires the year -- the year -- gear. our policy, and that of the city is to increase access for individuals to get out on the bay. a healthy and a good thing for us to be doing. as a club we will be working with the port and tenants' association to identify how it is possible in the best and least impact away to reach the $1 million. the operating shortfall that has been identified for you as
commissioners, my request would be that slip pricing should be emphasizing affordability to the fullest extent possible. parking pricing policies should not create disincentives to regular boating, a per day fee that the spent -- disproportionately hits folks who come regularly. look at the waiting list blessed as an opportunity to maximize waiting lists and last -- and more to maximize coverage in san francisco. >> thank you. lawrence [unintelligible] >> my name is lawrence weinhoff. thank you for letting me speak. i would primarily like to address the tattersall be -- appraisal.
i am in a unique position, part of the appraisal industry and a long-term tenant, through the freedom of information act i have gotten the operating contract that was entered into. as part of the contract and your special provisions, it is for all boating and waterways loans that the agency shall review charges of public and privately owned facilities in the general area and shall set rates that are sufficient and reduce gross income payment and other evidence of indebtedness as described. by contract, they are required
by contract to do this a minimum of once per year to set their rates to in essence balance the budget. under market rate, they have been raised sufficiently. on the record, david paterson is an excellent appraiser with an excellent reputation when it comes to real estate appraisals. i would suggest that this is probably his first on slip rental fees. i would like in it to rent for apartments.
south beach lists the current rent at about one and a half months old. 15 of these arenas are public. one of the reasons that i find mr. tattersall's reports flawed, in his analysis statement, he says that slipped rental rates should reflect the highest rates in public arenas. but only two are considered public. the rest are boutique irina's that are privately held. if you look at the chart, you will see that the only marina in the greater bay area with more public is santa cruz harbor. thank you.
>> thank you. [unintelligible] >> thank you, commissioners. and i am a tenant of the harbor and part of the yacht club, also part of the advocacy group represented here today. one of the keys to look that was how quickly everything was done in terms of moving this forward. a very short timeframe. there are a lot of questions about the appraisal and, quite candidly, a lot of questions about the whole thing. what can solve a lot of that is time, if we are given enough time, of which i want to thank peter, jim, and a need for, in preaching that more time was needed to get fact-finding done.
so, not a whole lot more to say other than bringing to light the fact that the harbor is the linchpin of the whole neighborhood. there is a lot of low-income housing and other things in terms of junior sailing. there is a whole cohesiveness about the area that we are sensitive to losing. i was the third at the harbor. i saw it when there was not a ball park and the whole area of was drawing. my sensitivity lies that it just remains and does not spin off into something that loses the essence of what it was built fort. >> thank you. jerry back? >> not usually my thing to speak
out at this sort of thing. i am probably the most recent person to move into the harbor. i started renting a slip in may. i've put a boat in in june. i was then informed that the rent for the slip i had waited eight years for would be increased by 54% in the next couple months. i do not have as much knowledge and experience to speak about it. these people have covered that end of it very well. there is something to be considered there. that time has been undercut or purchased. it would knock me back out after eight years of waiting. >> thank you. norman peers. >> good afternoon,
commissioners. i am a partner in the boat of south beach harbor. i have been involved in that area. cac for the last 25 years, the first thing i want to say with relief is that i am happy that we ended up at the port, rather than part and rack and wreck the park. i think the port has a much better understanding of maritime uses and that you are probably more sensitive ear to our concerns as harbor tenants and the need to maintain a proper public arena. that is what south beach is. this was developed by the redevelopment agency for the enhancement to build their neighborhood down there. giving public, working people access to the water. when you start raising rates, a
couple of things happened. these people are kicked out. the people that do not care what they paid for a little slip next to the ballpark move in. you have a marina that is only there with part-time tenants, leaning on their boats on weekends. the reason -- the rest of the time it is emptied. they pay and they pay and it makes it raw on everyone else. there is a lot in making this a vital place for the citizens of san francisco. not for someone living in spain, living in new york, living in los angeles that wants to come to a baseball game every other month and have a boat. it will fill up with that. there is a lot of money left