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					SANTA CRUZ PORT DISTRICT
FISCAL YEAR 13 BUDGET REPORT                           FINAL




Santa Cruz Port District FY 13 Budget Report   FINAL
Santa Cruz Port District FY 13 Budget Report   FINAL
TABLE OF CONTENTS


                                                                   Page
 1.    Budget Message                                               1

 2.    Policy Statements                                            6

 3.    Budget Users Guide                                           9

4.     Financial Summaries
4.1      Budget Summary                                             11
4.2      General Fund Revenue Budget                                12
4.3      Expenditure Budget                                         14
4.4      Expenditures By Department and Program                     16
4.5      Debt Service                                               17
4.6      Fund Balance Projections                                   18

 5.    Personnel Profile                                            19

 6.    Departments and Programs                                     23

7.     Administrative Services Department                           25
7.1      Administration                                             27
7.2      Finance and Purchasing                                     28
7.3      Property Management                                        29
7.4      Environmental and Permitting                               30
7.5      Port Commission Support                                    31

8.     Operations Department                                        33
8.1     Harbor Patrol                                               35
8.2     Marina Management                                           36
8.3     Rescue Services                                             37
8.4     Parking Services                                            39
8.5     Events                                                      40
8.6     Fuel Services                                               41

9.     Facilities Maintenance and Engineering Department            43
9.1      Docks, Piers and Related Structures                        45
9.2      Utilities Maintenance                                      46
9.3      Building Maintenance                                       47
9.4      Grounds                                                    48
9.5      Aeration Program                                           49
9.6      Ice Production                                             50
9.7      Capital Projects                                           51
9.8      Dredging Operations                                        52



Santa Cruz Port District FY 13 Budget Report               FINAL
TABLE OF CONTENTS (continued)


                                                                              Page
10.    Dredging Equipment                                                      53

11.    Tsunami Recovery                                                        55

12.    Capital Outlay                                                          56

13.    Capital Improvement Program                                             57

14.    Debt Service                                                            61

15.    Unfunded Projects                                                       62



Appendix A – Tsunami Recovery Projects Expense/Reimbursement and Cash Flow
             Overview

Appendix B – Santa Cruz Port District Principal and Interest Detail




Santa Cruz Port District FY 13 Budget Report                          FINAL
BUDGET MESSAGE


Honorable Chairman and Members of the Port Commission:

I am pleased to transmit to you the Santa Cruz Port District’s draft FY13 budget report for
your review and consideration. The budget report that follows is part of the District’s ongoing
effort to communicate to you and to our customers, the public and other agencies how the
Port District’s financial resources are being managed, and our plans for the upcoming fiscal
year.

Development of the FY13 budget was guided by the Port District Mission Statement and the
Port Director's Goals and Objectives (November 2011). The District did not raise slip fees in
2011, but instead looked to contain salary and benefit costs and to limit operating expenses
to the prior fiscal year’s level. The budget included a reorganization plan, capital
improvements and technological upgrades needed in order to contain operations and
maintenance costs.

The March 2011 tsunami abruptly shifted the FY12 focus from planned capital improvements
and technology upgrades to disaster response and recovery. District staff showed great
flexibility and creativity responding to the shift, and have delivered year-end savings to the
District that far surpass previous expectations. This was accomplished in spite of a significant
decrease in marina-related revenues that resulted from a significant loss in berthing capacity
caused by the tsunami.

The FY13 proposed budget funds current operations within revenue projections that are
approximately the same as FY12. Modest increases are projected in concession income
(rents), which are adjusted each fiscal year in accordance with the San Francisco-Oakland-
San Jose Consumer Price Index (CPI)1, and in fees for visitor services which were increased
in 2011 to aid in disaster recover. Efforts to conduct a detailed analysis of the District's costs
for services and recommended fee adjustments that were planned for FY12 are expected to
be completed during FY13.

The Port District has been self-supporting since 1993 when the remaining vestiges of
property tax revenues were diverted to City and County libraries. The County has contributed
between $25,000 and $35,000 each year to partially fund marine rescue services provided by
the Harbor Patrol. The FY12 budget includes $25,000 in revenues from the County.

Highlights of Previous Year

The March 11 tsunami was certainly the most noteworthy event in the District’s recent
history. The sights and sounds of the event, including the destruction of private property and
District assets, and the response and recovery operation, remain fresh in the minds of District

1
 The US Department of Labor Statistics announced on January 14, 2011, that the San Francisco-Oakland-San
Jose area CPI for 2010 increased by 1.5%.

Santa Cruz Port District FY 13 Budget                                                FINAL
                                                   1
BUDGET MESSAGE

staff and the local community. We are occasionally reminded about the devastating losses
experienced in Honshu, Japan, where 16,000 lives were lost and entire cities were destroyed
by surge waves as high as 120 feet. One such reminder was a visit to the harbor from Vice
Consul Takeshi Kurashina, a distinguished young Japanese Coast Guard lieutenant serving
with the Consulate General of Japan in San Francisco. Consul Kurashina visited Santa Cruz
Harbor because news of the damage here and in Crescent City had reached Japan, but the
extent of damage was not clear. The Japanese people, in their sincere and humbling way,
were distressed to learn that “their” tsunami had reached all the way to the US west coast.
Consul Kurashina, who had personally witnessed great tragedy during the earthquake and
tsunami in his homeland, was exceedingly gracious and apologetic. We were deeply honored
by his visit, and gratified to explain that our community withstood the event with no loss of
life, no serious injuries, and damage localized within the harbor.

The estimated total cost of damage repairs needed in the harbor has ranged as high as $28
million – more recent estimates place the cost at approximately $17 million. The District will
be financially responsible for approximately $1 million of the total cost (6.25%). Grants from
the Federal Emergency Management Agency (FEMA) and California Emergency
Management Agency (CalEMA) will cover the remaining 93.75%. Thirteen vessels sank
during the tsunami, and harbor users experienced long periods of disruption, inconvenience
and limited use of harbor facilities while Coast Guard, Department of Fish and Game and
harbor staff performed cleanup work and surveys to ensure public safety.

Approximately 10% of the harbor’s slips were destroyed during the tsunami. The total
projected revenue losses associated with slips and visitor berthing are projected to total over
$210,000 in FY12.

March 24 and 26, 2011, brought record rainfall and flooding events throughout Santa Cruz
County. Homes and shops in the Capitola Village were destroyed when a major storm drain
pipe failed, and residents of Nelson Road in the unincorporated area near Scotts Valley were
stranded by landslides. The harbor sustained additional minor damage during the storms,
and an additional private vessel sank at the dock when its bilge pumps failed to operate.

Although the storm events did not cause significant damage in the harbor, the ensuing weeks
of rain discouraged many harbor users and concession customers from visiting. The District’s
parking revenues suffered, resulting in a projected shortfall of $35,000 below budgeted
levels.

U Dock, the dock most severely damaged by the tsunami, was rebuilt in record time. A
ribbon-cutting ceremony was conducted in August 2011, and the “U-Dockers” immediately
moved home. Next in line was V Dock, followed by L, M, A and B Docks in the south harbor.
Engineering design for E, N, S and T Docks is currently underway. The District aims to
complete all tsunami recovery work before the end of 2013.



Santa Cruz Port District FY 13 Budget                                         FINAL
                                               2
BUDGET MESSAGE

July and August brought alarmingly large schools of anchovies into the harbor. In spite of
tsunami damage to the aeration system infrastructure, the program was successful in
preventing a fish kill. A major storm in the Southern Ocean in August sent damaging
southerly swells into the harbor just before and during the Labor Day Weekend. Harbor
crews, including the transitional dredge crew, were very effective at preventing catastrophic
failure of the south harbor docks during this event, although several large vessels were
displaced due to the strain on the docks. We look forward to inviting those yachts back to
safe quarters as soon as the L, M, A and B Dock reconstruction is completed.

Finally, for about 10 days in October and November harbor users and staff were treated to a
daily display of humpback whales feeding just outside the entrance. The great mammals
seemed oblivious to the boaters, kayakers and paddlers who ventured out for a closer look.
The whale “show” was a boon for many harbor businesses.

Throughout these events, the District capitalized on many new partnerships, working
relationships and opportunities. We are most grateful for the assistance in our response and
recovery efforts we received from elected officials, federal and state agencies, the County of
Santa Cruz, the City of Santa Cruz, Central Coast Energy Services and their SHORR2 crews,
the Coast Guard Auxiliary, and local firms, contractors and merchants, harbor tenants,
neighbors and friends too numerous to list here.

Dredging Operations

The Port District has contracted with Operating Engineers Local Union No. 3 (OE3) for
approximately 25 years for seasonal labor to operate and maintain the District’s dredging
equipment. OE3 was typically scheduled to work from September until about June each year,
depending on dredging needs throughout the harbor. The OE3 crew would quarter in trailers
kept in the District’s dredge equipment yard as all but one lived outside of Santa Cruz
County.

The most recent contract between the Port District and OE3 expired on June 30, 2011. The
Port District and OE3 first met in May, the time of year when negotiations for a new contract
would typically begin. The District presented its current budget situation and the economic
ramifications of the March 11 tsunami, which devastated the harbor. The cost estimate for
tsunami recovery was over $22 million at that time.

The District presented OE3 representatives with a proposal that involved transferring the
dredging operation to an in-house crew. The District’s proposal was estimated to save up to
$100,000 (20% of OE3 labor costs) per year, and would streamline both its dredging and
maintenance programs. In addition to cost savings, the harbor employees would work all
year, in place of the seasonal 42 week schedule worked by the OE3 crew. Year-round skilled

2
 Shoreline and Harbor Obstruction Removal and Restoration, a workforce program funded by the National
Emergency Grant.

Santa Cruz Port District FY 13 Budget                                                 FINAL
                                                    3
BUDGET MESSAGE


employees would enable the District to address other high priority needs such as tsunami
repairs and deferred maintenance projects.

OE3 representatives responded that they would not negotiate on the terms of the District’s
proposal, and presented their proposal which called for increases of 9% in 2011, 5% in 2012
and 5% in 2013. Negotiations came to impasse when the District presented its last, best and
final offer in late June. OE3 refused to negotiate, and its members unanimously rejected the
District’s proposal.

On July 26, the Port Commission voted unanimously to impose the last, best and final offer.
The District began transitioning to the in-house dredging program in early August by hiring a
consultant with expertise in dredging and marine construction to survey our equipment and
determine maintenance needs. The transition to an in-house crew has involved assigning two
long-term employees from Facilities Maintenance to the dredging program and hiring
additional workers with experience operating and maintaining dredging equipment. All five of
the current crewmembers live in the Santa Cruz area and are available to respond on short
notice.

The savings in labor costs resulting from the transition to the in-house dredging program are
estimated at over $175,000 (26%) for FY 12. Savings projected for FY 13 are expected to be
nearer to 20%.

Pension Withdrawal Liability

In August 2011, the union’s pension trust fund notified the Port District that it was being
assessed a withdrawal liability in the amount of approximately $913,000 and that the District
was obligated under federal law3 to commence making quarterly payments immediately. The
law was enacted to provide a means of protecting vested benefits when employers are
deemed to have withdrawn from union pension programs.

The applicability and amount of any liability are currently in dispute, but the District is
required to make quarterly payments to the trust fund in the amount determined by the trust
fund until the dispute is resolved. The full amount of the potential withdrawal liability is
referenced in the FY 13 budget as an “Other Liability.”

Dredging Equipment

The District is now planning for replacement of the 26-year old dredge Seabright. New
technology, reduced operational and maintenance costs, and full compliance with current
regulations will better ensure the safe and reliable dredging program needed for the harbor.

3
    Employee Retirement Income Security Act of 1974 (ERISA).

Santa Cruz Port District FY 13 Budget                                       FINAL
                                                      4
BUDGET MESSAGE


Information about this planned acquisition is presented in the Capital Projects section of this
report.

Conclusion

Rebuilding after the March 11 tsunami damage became the District’s highest priority in FY12.
Over the long term, the recovery process will produce attractive new docks with improved
amenities to serve tenants and visitors, and will bring new customers to the District’s landside
concessions. However, the rebuilding process and its impacts to the District’s inventory of
slips continue to impact revenues and expenses. The proposed budget relies on use of
reserve funds and loans to complete dock reconstruction, update dredging equipment, and
continue to provide service at current levels in each program area.




Santa Cruz Port District FY 13 Budget                                         FINAL
                                               5
POLICY STATEMENTS


The FY 13 budget expands the recognition of expenses to include encumbrances. Funds are
shown as expenses at the time they are “encumbered” by contractual obligations, thus
becoming unavailable for other expenses. Encumbering funds prevents further expenditure
that would conflict with commitments already made. Encumbered funds are shown in the
Fund Balance as expenditures in the fiscal year they were encumbered.

Port District finances have historically been managed and reported in accordance with
Generally Accepted Accounting Principles (GAAP), and with applicable statements published
by the Government Accounting Standards Board (GASB). The Port District does not have
specific written policies governing how the budget was to be created or administered.

In the absence of written policies, several assumptions have been made to enable the
continuing administration of the FY 12 budget and the preparation of the FY 13 budget.
Those assumptions include:

1.     Balanced Budget:

       The Port District operates with a balanced budget where operating revenues are equal
       to or exceed operating expenditures. Imbalances to the budget that result from
       increased expenses, decreased revenues, or a combination of the two, will require a
       budget revision.

2.     Fixed Assets

       Fixed (or capital) assets are tangible items individually valued at $5,000 or more.
       Examples of fixed assets would be vehicles, equipment, boats, etc. For accounting
       purposes, fixed assets with an estimated useful life of at least two years after
       acquisitions are capitalized.

3.     Capital Improvements

       Capital improvements are physical assets, constructed or installed, with a useful life of
       ten years or longer and a cost of $25,000 or more. Services that ultimately result in
       such physical assets are also budgeted as capital improvements (e.g. engineering
       design, architectural services, etc.).




Santa Cruz Port District FY 13 Budget                                         FINAL
                                               6
POLICY STATEMENTS


4.        Depreciation

          Depreciation is reported annually as an operating expense of approximately $1.1
          million per year. The full amount of annual depreciation has not been included in the
          operating budget.

5.        Appropriations

          Appropriation balances may be transferred from one expenditure account to another
          within the operating budget without Port Commission approval. Capital improvement
          budgets are not considered to be part of any transferable appropriation balance. Any
          increase in total appropriations must be approved by the Port Commission.

6.        Reserves

          Reserve funds are not available for use to offset any expenditures that exceed total
          appropriations. Reserves may only be used as approved by the Port Commission.

7.        Use of Restricted/Unrestricted Net Assets

          When an expense is incurred for purposes for which both restricted and unrestricted
          net assets are available, restricted net assets are applied first. 4

8.        Staffing Levels

          The total number of full-time equivalent (FTE) employees shall be approved by the
          Port Commission.




4
    This practice is noted as a policy in the FY 10 and 11 Auditor’s Report (p. 11).

Santa Cruz Port District FY 13 Budget                                                  FINAL
                                                           7
POLICY STATEMENTS


Additional Policies for Future Consideration

The Port Commission may wish to consider establishing policies to guide future financial
decisions. Policies that would define the Port District’s strategic direction, set standards for
financial management and define the limitations of the Port Director’s authority would serve
to streamline reporting, encourage creativity on the part of staff and increase confidence
among all stakeholders.

Examples may include policies on setting and adjusting fees and other charges, establishing
reserve fund and debt levels, and financial actions to undertake in emergencies.




Santa Cruz Port District FY 13 Budget                                           FINAL
                                                8
BUDGET USERS GUIDE


General Fund (i.e. operating) revenues and expenses are presented in the Financial
Summaries. FY12 Budget, Projected Actual and FY13 Proposed Budget figures are
presented for comparison. Terms used in the Financial Summaries and in the program
budgets that follow are defined below.

Capital Outlay - Expenses associated with acquiring capital (or "fixed") asset items
individually valued at $5,000 or more. Examples of fixed assets would be vehicles,
equipment, boats, etc.

Charges for Services - Revenues received as reimbursement to the Port District for the use
of staff, equipment or other resources beyond the services included with other user fees or
rents. Examples may include standby of marine rescue personnel for aquatics competitions,
water taxi rental and after-hours call back for fuel sales.

Debt Service - Principal and interest payments on loans.

Fines - Fines (or "bail amounts") for parking or other citations paid directly to the Port District.

Intergovernmental Revenues - Funds received by the Port District from another
government agency. Examples include Small Craft Harbor loans issued by the California
Department of Boating and Waterways (DBW) in the Capital Improvement program budget,
contributions from the County of Santa Cruz for marine rescue services, and grants from
state, federal or local government sources.

Other/Miscellaneous - Revenues shown as Other/Miscellaneous include sales of fuel, ice
and merchandise, proceeds from lien sales or disposal of surplus items, etc.

Personnel Services - All costs associated with Port District staff compensation for regular
and temporary employees, including payroll taxes, worker's compensation, unemployment
insurance and employee benefits.

Rents - Rents encompass payments received by the Port District from its land-based
tenants. Revenues are classified as either base rent, percentage rents or utility chargebacks
as applicable.

Services and Supplies - Costs for all services provided to the Port District by contract or
work order, utilities, insurance premiums, purchase of items not classified as fixed assets or
"capital outlay," etc.




Santa Cruz Port District FY 13 Budget                                            FINAL
                                                 9
BUDGET USERS GUIDE


Transfers In/Out - Transfers between Port District funds (e.g. allocations to the Dredge
Intermediate Fund may involve a transfer from the General Fund, Long Term Contingency
Fund, or any combination of those and other funds).

User Fees - Fees established by the Port Commission for various uses of Port District
facilities including boat slips, dry storage, RV and general parking.

Department and Program budget summaries are based on estimated levels of effort for each
throughout FY13. Prior fiscal year data is only available for FY 12 for comparison as FY12
was the first year the Port District used a program-based budget. Columns are included for
future data for FY13 actual and FY14.

The proposed Capital Improvement Program is presented on pages 51-54. Staffing and
capital outlay in support of the Capital Improvement are budgeted separately in the Capital
Projects section of the Facilities Maintenance and Engineering Department (page 46).




Santa Cruz Port District FY 13 Budget                                       FINAL
                                             10
FINANCIAL SUMMARIES


GENERAL FUND BUDGET SUMMARY


         FY 13 REVENUES
         BY CATEGORY                                           Total All Funds

                            User Fees                              $ 5,041,000
                            Rents                                    1,317,200
                            Charges for Services                        15,000
                            Fines                                       40,000
                            Fuel Sales                                 485,500
                            Intergovernmental                           37,000
                            Other/Miscellaneous                              0
                            Transfers In                                     0
                                                       TOTAL       $ 6,935,700

         FY 13 EXPENDITURES
         BY CATEGORY

                            Personnel Services                     $ 2,852,228
                            Services & Supplies                      2,667,059
                            Capital Outlay                               7,500


                                          TOTAL OPERATING          $ 5,526,787
                            Debt Service                             1,284,323
                            Other Liabilities                          100,000
                            Transfers Out                                    0
                                             GRAND TOTAL           $ 6,911,110




Santa Cruz Port District FY 13 Budget                                 FINAL
                                                  11
FINANCIAL SUMMARIES

GENERAL FUND REVENUE BUDGET


                                                          FY12                 FY12                FY13
                                                        Budget             Projected           Proposed

       User Fees                                   $ 4,992,000           $ 4,730,028          $ 5,041,000
       Rents                                         1,280,000             1,305,910            1,317,200
       Charges for Services                             15,600                 5,000               15,000
       Fines                                            40,000                40,533               40,000
       Fuel Sales                                      361,750               518,922              485,500
       Intergovernmental                                67,000                 97,000              37,000
       Other/Miscellaneous                                   0                      0              35,000
       Transfers In5                                    75,000                       0                  0


                                TOTAL              $ 6,756,230           $ 6,697,393          $ 6,970,700


Intergovernmental revenues include amounts anticipated from the County of Santa Cruz for
marine rescue services and waste oil recycling. Rental revenue increases reflect modest
growth in sales among concessions, as well as CPI increases included in month-to-month
rentals.

The District had planned to complete a study of its fees and develop a cost recovery strategy
during FY12. This effort was delayed due to other priorities, but is expected to commence
during FY13, Charges for services reflect increased revenues associated with cost recovery
strategies anticipated for implementation during FY13.




5
    Transfers in have been deleted as a revenue category to aid in year-to-year comparison.

Santa Cruz Port District FY 13 Budget                                                         FINAL
                                                        12
FINANCIAL SUMMARIES




Santa Cruz Port District FY 13 Budget        FINAL
                                        13
FINANCIAL SUMMARIES

GENERAL FUND EXPENDITURE BUDGET


                                                       FY12                 FY12             FY13
                                                     Budget                Actual        Proposed

     Personnel Services                         $3,023,542            $ 2,642,038      $ 2,852,228
     Services & Supplies                         2,291,331              2,164,812        2,667,059
     Capital Outlay                                 32,700                119,933            7,500
           TOTAL OPERATING                      $ 5,347,573           $ 4,926,783      $ 5,526,787
     Debt Service                                 1,148,688               394,102        1,284,323
     Other Liabilities                                    0                73,324          100,000
     Transfer Out6 (to Dredge                       280,000               200,000                0
     Intermediate Fund)

                   GRAND TOTAL                  $ 6,776,261           $ 5,594,209      $ 6,911,110

FY12 projected savings for Personnel Services resulted from vacancies in Operations and
Facilities Maintenance, reduced salary and benefit costs in Dredging Operations and
reimbursement of tsunami-related labor expenses. In addition, the Port Engineer position
was funded by the National Emergency Grant for approximately 10 weeks,

Debt Service in FY12 was reduced by $754,586 when DBW allowed the Port District to defer
principal and interest payments by one year to improve cash flow for tsunami recovery
activities. The debt service increases in FY13 due to increased principal and interest
payments on California Maritime Infrastructure Authority (CMIA) bonds and due to the
emergency $2.5 million loan approved by DBW for tsunami recovery. Additional detail on the
District’s debt service is provided on page 55 and in Appendix B of this report.

Expenditures noted as “Other Liabilities” are pension withdrawal liability payments made to
the Operating Engineers Local No. 3 (OE3) Pension Trust Fund. These payments are
required by federal law7 as a means of protecting vested benefits when employers are
deemed to have withdrawn from union pension programs. The District’s contract with OE3
expired in June 2011. In August 2011, the trust fund notified the Port District that it was being
assessed withdrawal liability and was obligated under federal law to commence making


6
  FY12 transfers out reflected contribution to Dredge Intermediate Fund. The FY13 budget does not propose a
transfer out from the General Fund. Dredge Intermediate Fund work is proposed to be completed using a
combination of the Dredge Intermediate Fund balance projected for FY12 year end and a contribution from
Long Term Contingency Fund. See page 18 for fund balance projections.
7
  Employee Retirement Income Security Act of 1974 (ERISA).

Santa Cruz Port District FY 13 Budget                                                   FINAL
                                                     14
FINANCIAL SUMMARIES


quarterly payments immediately. The applicability and amount of any liability are currently in
dispute, but the District is required to make quarterly payments to the trust fund in the
amount determined by the trust fund until the dispute is resolved.




Santa Cruz Port District FY 13 Budget                                        FINAL
                                              15
FINANCIAL SUMMARIES


EXPENDITURES BY DEPARTMENT AND PROGRAM


                                                         FY12            FY12            FY13
Department and Program                                  Budget           Actual        Proposed

100    Administrative Services Department
110    Administration                                      527,283        613,654          566,982
120    Finance & Purchasing                                185,941        161,079          168,060
130    Property Management                                 283,000        273,754          306,555
140    Environmental & Permitting                          121,288         72,112          116,239
190    Port Commission Support                              54,500         35,426           54,185
                                 Department Total        1,178,012      1,156,026        1,212,020

200    Operations Department
210    Harbor Patrol                                       423,214        505,170          447,189
220    Marina Management                                   373,097        364,835          376,436
230    Rescue Services                                     123,977         64,958          101,339
240    Parking                                             185,738        166,524          195,893
250    Events                                              121,249         43,791           54,422
280    Fuel Services                                       340,105        434,840          472,866
                                   Department Total      1,568,879      1,642,587        1,648,145

300    Facilities Maintenance & Engineering
310    Docks, Piers & Other Marine Structures               260,151        217,008         250,857
320    Utilities Maintenance                                185,908         98,129         160,274
330    Building Maintenance                                  252506        227,297         283,218
340    Grounds Maintenance                                  646,292        644,573         707,251
350    Aeration Program                                       89,397        48,323          58,723
360    Ice Production                                         57,220        26,840          46,592
390    Capital Projects                                       53,787        16,006          58,390
400    Dredging Operations                                1,321,924      1,049,814       1,481,317
                                 Department Total       $ 2,667,185    $ 2,401,494     $ 2,766,621

                           Total Operating Budget       $ 5,386,575     5,126,783      $ 5,626,787

                       Debt Service/Other Liabilities    1,148,688        394,102        1,284,323

                                        Grand Total     $ 6,776,261    $ 5,594,209     $ 6,911,110




Santa Cruz Port District FY 13 Budget                                                FINAL
                                                   16
FINANCIAL SUMMARIES


DEBT SERVICE




The chart above shows historic and projected debt service by fiscal year for amounts
previously borrowed. Loan payoff would be achieved during FY44 if no additional borrowing
occurred.

Funds totaling $2.5 million were approved in the Governor's budget for State FY 2012-13 as
an emergency loan for tsunami recovery work at the Santa Cruz Harbor. This loan was
approved by the Boating and Waterways Commission as an amendment to an existing loan
(listed as Loan 12/13 on the Debt Service Detail in Appendix B). Those funds were drawn in
late FY12 to finance the Port District’s 6.25% share of the tsunami recovery work, and to
ensure sufficient cash is available for contractor payments in advance of reimbursement by
FEMA/CalEMA.



Santa Cruz Port District FY 13 Budget                                     FINAL
                                            17
FINANCIAL SUMMARIES

FUND BALANCE PROJECTIONS

                                        Beginning    Revenues &     Expenditures         Estimated
Fund                         FY           Balance    Transfers In    & Transfers          Year End
                                                                             Out           Balance

General Fund                 12          6,692,267     6,697,392        5,875,600        7,514,059
                             13          7,514,059     6,953,700        6,911,110        7,556,649

Capital Projects Fund        12           174,000              0                0          174,000
                             13           174,000        200,000          280,000           94,000

Dredge Int. Fund             12             7,023        200,000          125,205           81,738
                             13            81,738        180,000          260,000            1,738

Seabright Fund               12           100,000              0                0          100,000
                             13           100,000              0          100,000                0

Long Term                    12           775,380              0                0          775,380
Contingency Fund             13           775,380              0          380,000          395,380

Election Fund                12                 0         80,000                0           80,000
                             13            80,000         80,000          160,000                0

Easement Fund                12           260,000              0                0          260,000
                             13           260,000              0                0          260,000

Salmon Relief Funds          12           157,000              0                0          157,000
                             13           157,000              0                0          157,000

Bond Reserve                 12           373,326          4,331                0          377,657
                             13           377,657              0                0          377,657

                                   TOTAL ALL FUNDS (FY12 BEGINNING BALANCE):             8,543,327
                                      TOTAL ALL FUNDS (FY12 ENDING BALANCE):             9,519,834
                                                      NET CHANGE FY11 – FY12:            +976,507
                                     TOTAL ALL FUNDS (FY13 ENDING BALANCE):              9,042,424
                                                      NET CHANGE FY12 – FY13:             -477,410
                                                   2-YEAR CHANGE FY11 – FY13             +499,097

Note: Expenditures and transfers out totaling $270,000 in FY 13 are funding sources for capital
improvement projects recommended in the Capital Improvement Program commencing on page 52.
Election funds in the amount of $160,000 will be expended as needed for the 2012 election.

Santa Cruz Port District FY 13 Budget                                          FINAL
                                                18
PERSONNEL PROFILE




Santa Cruz Port District FY 13 Budget        FINAL
                                        19
PERSONNEL PROFILE

The organization chart above is the basis of the FY13 budget projections. Positions shown with an
associated FTE (full-time equivalent) number are regular, permanent positions assigned to each
department. Positions shown with an asterisk and no FTE number are temporary and/or seasonal
workers.

The FY 12 budget authorized 19.67 FTEs. The FY13 budget eliminates two vacant Deputy
Harbormaster positions (-2.0 FTE), restores one Assistant Harbormaster position (+1.0 FTE) and
adds one Customer Service position to staff the front desk full time (+1.0 FTE). It proposes to add five
Dredging Operations Program positions which are not yet classified (+5.0 FTE) as part of the
transition to the in-house dredging program.

The resulting organization will benefit from improved span of control in the Operations Department,
staff dedicated to the implementation of the new Marina Management System at the front desk, and
reduced costs, improved flexibility and coordination, and greater operational control of the dredging
operation.

Salary and benefit costs for all employees (regular FTE and temporary/seasonal) in FY 11, FY 12 and
FY 13 are tabulated below.

Salary and Benefit Costs

                               FY 11          FY 12           FY 12                       FY 13
                            SALARIES &     SALARIES &      SALARIES &        FY 13       TO FY 12
DEPARTMENT/SERVICE           BENEFITS       BENEFITS        BENEFITS        BUDGET       CHANGE
                              ACTUAL         BUDGET        PROJECTED
                                                                                              -18,442
Administrative Services          443,000         493,512        410,202      475,070
                                                                                                (-4%)
                                                                                              -16,892
Operations                     1,063,705       1,065,679      1,105,681    1,048,787
                                                                                                (-2%)
Facilities Maintenance                                                                         6,001
                                 701,700         733,873        633,519      739,954
and Engineering                                                                              (+0.8%)
                                                                                              -85,007
Dredging Operations1             710,826         673,424        492,636      588,417
                                                                                               (-13%)
                                                                                             -114,260
TOTALS                         2,919,231       3,023,086      2,642,038    2,852,228
                                                                                                (-4%)


FY 12 Total FTE = 19.67
FY 13 Total FTE = 24.67

Notes:
1.     Dredging Operations are encompassed under Facilities Maintenance and Engineering, but are
       shown separately here for added clarity.




Santa Cruz Port District FY 13 Budget                                                FINAL
                                                  20
PERSONNEL PROFILE




Santa Cruz Port District FY 13 Budget        FINAL
                                        21
Santa Cruz Port District FY 13 Budget        FINAL
                                        22
DEPARTMENTS AND PROGRAMS




24.67 FTE Total

Santa Cruz Port District FY 13 Budget        FINAL
                                        23
Santa Cruz Port District FY 13 Budget        FINAL
                                        24
ADMINISTRATIVE SERVICES DEPARTMENT




Santa Cruz Port District FY 13 Budget        FINAL
                                        25
ADMINISTRATIVE SERVICES DEPARTMENT


DEPARTMENT SUMMARY

                                         FY 12             FY 12                FY 13
                                                                                                    FY 148
                                        Budget           Projected             Budget
Expenditures by Category:

Personnel Services                       493,512               410,202             475,070

Services & Supplies                      675,500               745,052             731,950

Capital Outlay                              9,000                     772               5,000

             Total Expenditures         1,178,012             1,156,026          1,212,020

Expenditures by Program:

Administration                           533,283               613,654             566,982

Finance & Purchasing                     185,941               161,079             168,060

Property Management                      283,000               273,754             306,554

Environmental & Permitting               121,288                 72,112            116,239

Port Commission Support                    54,500                35,426              54,185

             Total Expenditures         1,178,012             1,156,026          1,212,020
Total Regular Personnel
                                          4.0                 4.0                 4.0
Funded
Temporary/Seasonal
                                        Varies               Varies             Varies
Personnel




8
  Shaded column for FY14 is included in tables to indicate prior year data is not available, but will be presented
in future years' budgets.

Santa Cruz Port District FY 13 Budget                                                           FINAL
                                                        26
ADMINISTRATIVE SERVICES DEPARTMENT

Administration

Administration encompasses the daily oversight of all Port District operations and programs,
long-term planning, budget preparation, website maintenance, customer service, public
outreach and promotional activities, coordination with local and regional organizations such
as the California Special Districts Association, and various activities undertaken by the Port
Director and Administrative Services staff.



                                  FY 12              FY 12            FY 13
Expenditures                                                                          FY 14
                                 Budget            Projected         Budget
Personnel Services                      150,283          178,388       172,682

Services & Supplies                     374,000          434,494       389,300

Capital Outlay                             9,000               772       5,000

                  Total                 533,283          613,654       566,982

Funding Source(s)

Intergovernmental                          5,000                 0             0

Rents                                   121,779          153,413       147,995

User Fees                               406,504          460,240       443,986

                  Total                 533,283          613,654       566,982

Regular
                                                    1.7 FTE          1.5 FTE
Personnel                       1.45 FTE
Temporary/Seasonal
                                  None                  None          None
Personnel




Santa Cruz Port District FY 13 Budget                                              FINAL
                                                   27
ADMINISTRATIVE SERVICES DEPARTMENT

Finance and Purchasing

Finance and purchasing activities include accounting for all Port District assets, revenues
and expenses; administering payroll; preparing budget monitoring and quarterly reports;
contracting for services; preparing for and participating in audits. Finance and purchasing
staff are currently developing purchasing procedures, implementing a new payroll system
using an outside payroll processing contractor, and upgrading accounting software to provide
greater stability and efficiency in accounting processes.

New accounting software (Microsoft Dynamics GP) was purchased in early FY 12 to replace
the antiquated system that had been in use for approximately 25 years. The accounting
burden generated by the tsunami delayed full implementation of the new system until about
mid-year, but all transactions have been recorded in the new system. Staff and the Port
District’s Certified Public Accountant (CPA) are currently receiving training and technical
support on the system.




                                  FY 12                FY 12               FY 13
Expenditures                                                                                  FY 14
                                 Budget              Projected            Budget

Personnel Services                      154,441            120,985            123,510

Services & Supplies                      31,500             39,371             44,550

Capital Outlay                               0                  722                  0

                  Total                 185,941            161,079            168,060

Funding Source(s)

User Fees                               185,941            161,079            168,060

                  Total                 185,941            161,079            168,060

Regular
                         1.25 FTE                     1.2 FTE             1.1 FTE
Personnel
Temporary/Seasonal
                   Clerical/Logistics             Clerical/Logistics Clerical/Logistics
Personnel




Santa Cruz Port District FY 13 Budget                                                 FINAL
                                                    28
ADMINISTRATIVE SERVICES DEPARTMENT

Property Management

Property management activities include serving as the primary contact for landside tenants,
negotiating new and revised leases and easements, advertising space available for rent,
monitoring rental payments and applying rent adjustments.




                                    FY 12                  FY 12            FY 13
Expenditures                                                                                 FY 14
                                   Budget                Projected         Budget

Personnel Services                             44,500           23,453         51,055

Services & Supplies                           238,500          250,301        255,500

Capital Outlay                                     0                   0             0

                    Total                     283,000          273,754        306,555

Funding Source(s)

Rents                                         283,000          273,754        306,555

User Fees                                          0                   0             0

                    Total                     283,000          273,754        306,555

Regular Personnel                 0.35 FTE                   0.2 FTE       0.4 FTE

Temporary/Seasonal
                                        N/A                   N/A           N/A
Personnel




Santa Cruz Port District FY 13 Budget                                                    FINAL
                                                        29
ADMINISTRATIVE SERVICES DEPARTMENT

Environmental and Permitting

The environmental and permitting work includes managing the beach quality monitoring and
hydrogen sulfide protocol during dredging activities, negotiating new permits and
amendments with the Army Corps of Engineers, Us Environmental Protection Agency,
California Coastal Commission, Regional Water Quality Control Board, Monterey Bay
National Marine Sanctuary, Monterey Bay Unified Air Pollution Control District and other
agencies for dredging and disposal operations, and overseeing the harbor's Clean Marina
Program, waste oil and other recycling facilities.




                                  FY 12              FY 12            FY 13
Expenditures                                                                           FY 14
                                 Budget            Projected         Budget

Personnel Services                       93,788          54,565           76,639

Services & Supplies                      27,500          17,548           39,600

Capital Outlay                               0                 0               0

                  Total                 121,288          72,112          116,239

Funding Source(s)

Intergovernmental                        12,000          12,000           12,000

User Fees                               109,288          60,112          104,239

                  Total                 121,288          72,112          116,239

Regular Personnel               0.20 FTE            0.6 FTE          0.6 FTE

Temporary/Seasonal           Beach Quality        Beach Quality    Beach Quality
Personnel                      Monitors             Monitors         Monitors




Santa Cruz Port District FY 13 Budget                                              FINAL
                                                  30
ADMINISTRATIVE SERVICES DEPARTMENT


Port Commission Support

Activities that provide staff support for the Port Commission include developing meeting
agendas, staff reports and minutes; coordinating with the County Elections Department and
ensuring compliance with the Brown Act and adopted Port Commission policies and
procedures.



                                   FY 12             FY 12             FY 13
Expenditures                                                                             FY 14
                                  Budget           Projected          Budget

Personnel Services                        50,500          32,811          51,185

Services & Supplies                        4,000              2,615          3,000

Capital Outlay                                0                  0              0

                    Total                 54,500          35,426          54,185

Funding Source(s)

User Fees                                 54,500          35,426          54,185

                    Total                 54,500          35,426          54,185

Regular Personnel                                   0.3 FTE           0.4 FTE
                                 0.43 FTE
Temporary/Seasonal
                                    N/A                 N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                                FINAL
                                                   31
Santa Cruz Port District FY 13 Budget        FINAL
                                        32
OPERATIONS DEPARTMENT




Santa Cruz Port District FY 13 Budget        FINAL
                                        33
OPERATIONS DEPARTMENT


DEPARTMENT SUMMARY

                                        FY 12 Budget          FY 12        FY 13
                                                                                             FY 14
                                                            Projected     Budget
Expenditures by Category:

Personnel Services                            1,065,679       1,105,681   1,048,787

Services & Supplies                            502,000         468,963      587,550

Capital Outlay                                      1,200       62,469        2,500

           Total Expenditures                 1,568,879       1,580,218   1,648,145

Expenditures by Program:

Harbor Patrol                                  424,713         567,639      447,189

Marina Management                              373,097         364,835      376,439

Rescue Services                                123,977          64,958      101,339

Parking Services                               185,738         166,524      195,893

Events                                         121,249          43,791       54,422

Fuel Services                                  340,105         434,840      472,866

           Total Expenditures                 1,568,879       1,642,587   1,648,145

Total Regular Personnel
                                          8.67 FTE          8.67 FTE      8.67 FTE
Funded
Temporary/Seasonal
                                           Varies            Varies        Varies
Personnel




Santa Cruz Port District FY 13 Budget                                                FINAL
                                                      34
OPERATIONS DEPARTMENT

Harbor Patrol

The Harbor Patrol provides 24-hour security and enforcement of Port District ordinances,
California Harbors and Navigation, Penal and Vehicle Codes. Deputy Harbormasters provide
site security and traffic control, make arrests, prepare incident reports and provide mutual aid
response to other law enforcement agencies.

Planned capital outlay for the Harbor Patrol involves the replacement of three portable radios
that will be compatible with the countywide public safety communications network (two radios
were replaced in FY12).


                                   FY 12             FY 12          FY 13
Expenditures                                                                         FY 14
                                  Budget           Projected       Budget
Personnel Services                      379,213        451,054        389,489

Services & Supplies                      44,300         54,116         55,200

Capital Outlay                            1,200         62,469          2,500

                    Total               424,713        567,639        447,189

Funding Source(s)

Rents                                    75,000         80,000         85,000

User Fees                               349,713        427,639        362,189

Intergovernmental                                       60,000               0

                    Total               424,713        567,639        447,189

Regular Personnel                3.27 FTE           3.7 FTE        3.4 FTE

Temporary/Seasonal
                              Reserve DHM         Reserve DHM    Reserve DHM
Personnel




Santa Cruz Port District FY 13 Budget                                            FINAL
                                                  35
OPERATIONS DEPARTMENT

Marina Management

Harbormaster staff manages and assigns berths and dry storage areas; monitors docks and
dry storage areas for safety; staffs the front counter 363 days per year; administers invoicing
and payment processes; monitors vessel use and confirms current registration; performs
vessel serviceability checks; manages the waiting list; conducts electrolysis testing; develops
delinquency reports; conducts lien sales, and manages the harbor's database.

                                   FY 12              FY 12             FY 13
Expenditures                                                                              FY 14
                                  Budget            Projected          Budget
Personnel Services                      338,797         328,295           329,686

Services & Supplies                      34,300          36,540            46,750

Capital Outlay                               0                  0                 0

                    Total               373,097         364,835           376,436

Funding Source(s)

Intergovernmental                        22,000                 0                 0

Rents                                    21,097          21,097            20,000

User Fees                               330,000         343,738           356,436

Total                                   373,097         364,835           376,436

Regular Personnel                2.94 FTE            2.8 FTE           2.8 FTE
                            Reserve DHM           Reserve DHM       Reserve DHM
Temporary/Seasonal          Desk/Office           Desk/Office       Desk/Office
Personnel                   Support               Support           Support




Santa Cruz Port District FY 13 Budget                                                 FINAL
                                                   36
OPERATIONS DEPARTMENT

Rescue Services

Rescue services are provided by the Harbor Patrol aboard the vessel Almar or the hard-
bottomed inflatable (HBI), and by lifeguards assigned to Harbor Beach when catamaran and
outrigger storage is permitted on the beach. Rescues performed on Almar are often
conducted under the Coastal Incident Response Plan (CIRP) in coordination with City,
County and State resources. The US Coast Guard staffs its Santa Cruz station in the harbor
on weekends between Memorial Day and Labor Day. The Harbor Patrol and USCG
coordinate efforts on those days.

Both Almar and the HBI were severely damaged during the tsunami. The HBI was swamped
at the fuel dock, and was quickly returned to service following repairs by Monterey Bay
Marine. Almar’s sponsons were damaged during tsunami response and recovery, and
eventually deflated to the point of failure. Almar was out of service for approximately 4
months before the specialized work involved in sponson replacement was completed. The
Port District’s insurance covered all but the deductible costs for these repairs.

Almar was taken out of service again in October 2011 for planned engine and electronic
upgrades funded by a California Department of Boating and Waterways (DBW) grant. That
work was completed and Almar returned to service in November 2011. FY 12 projected
expenses reflect the time out of service in reduced personnel expenses.


                                    FY 12            FY 12          FY 13
Expenditures                                                                        FY 14
                                   Budget          Projected       Budget
Personnel Services                       92,977         41,500        76,839

Services & Supplies                      31,000         23,458        24,500

Capital Outlay                               0                 0            0

                    Total               123,977         64,958       101,339




Santa Cruz Port District FY 13 Budget                                       FINAL
                                                  37
OPERATIONS DEPARTMENT

Rescue Services (continued)




Funding Source(s)

Intergovernmental                        35,000            25,000         25,000

Rents                                    15,000             8,000         15,000

User Fees                                73,977            31,958         61,339

                    Total               123,977            64,958        101,339

Regular Personnel                 0.32 FTE             0.3 FTE        0.6 FTE

Temporary/Seasonal             Reserve DHM        Reserve DHM       Reserve DHM
Personnel                       Lifeguards         Lifeguards        Lifeguards




Santa Cruz Port District FY 13 Budget                                             FINAL
                                                  38
OPERATIONS DEPARTMENT

Parking Services

Parking services encompass year-round staffing of the concession parking lot serving 2222
East Cliff Drive (O'Neill Building), the Crow's Nest and Café el Palomar and Harbor Beach;
beach parking permit sales; slip licensee parking permits; launch ramp parking and permits;
water taxi and shuttle van services, and parking ordinance enforcement. Revenues from
parking meters, pay stations, permit sales and concession lot receipts are used to fund
parking services.



                                   FY 12               FY 12                FY 13
Expenditures                                                                                 FY 14
                                  Budget             Projected             Budget
Personnel Services                      177,338             150,011            172,693

Services & Supplies                       8,400              16,531             23,200

Capital Outlay                               0                     0                    0

                    Total               185,738             166,524            195,893

Funding Source(s)

Parking Fees                            185,738             166,524            195,893

                    Total               185,738             166,524            195,893

Regular Personnel                1.10 FTE               1.3 FTE            1.4 FTE
                            Concession            Concession           Concession
                            Parking               Parking              Parking
Temporary/Seasonal
                            Launch Parking        Launch Parking       Launch Parking
Personnel
                            Water Shuttle         Water Shuttle        Water Shuttle
                            Land Shuttle          Land Shuttle         Land Shuttle




Santa Cruz Port District FY 13 Budget                                                FINAL
                                                   39
OPERATIONS DEPARTMENT

Events

This program is jointly managed by Operations and Administrative Services, and comprises
permitting, transportation and security for special events such as the Taste of the Harbor, the
Crow's Nest Thursday night beach barbecues, beach volleyball tournaments, regattas, and
other special events.


                                    FY 12             FY 12               FY 13
Expenditures                                                                               FY 14
                                   Budget           Projected            Budget
Personnel Services                      121,249            43,791             54,422

Services & Supplies                          0                   0                    0

Capital Outlay                               0                   0                    0

                    Total               121,249            43,791             54,422

Funding Source(s)

Rents                                   106,249            38,791             39,422

Charges for Services                     15,000             5,000             15,000

User Fees                                    0                   0                    0

                    Total               121,249            43,791             54,422

Regular Personnel                0.76 FTE              0.4 FTE           0.4 FTE
                            Concession Parking    Concession         Concession
                            Launch Parking        Parking            Parking
Temporary/Seasonal          Water Shuttle         Launch Parking     Launch Parking
Personnel                   Land Shuttle          Water Shuttle      Water Shuttle
                            Reserve DHM           Land Shuttle       Land Shuttle
                                                  Reserve DHM        Reserve DHM




Santa Cruz Port District FY 13 Budget                                              FINAL
                                                  40
OPERATIONS DEPARTMENT

Fuel Services

The Port District took over operation and maintenance of the harbor's only fuel dock in July
2010. A project to replace the underground fuel line from the tanks to the sump had been
postponed in FY 12. Tsunami damage to the fuel piping under the public pier, along with
damage to portions of the underground infrastructure, made replacement work reemerge as
a high priority (although unfunded) project. The project is estimated to cost $130,000, of
which about $70,000 will be reimbursed by FEMA/CalEMA. The project is anticipated to be
completed by April 2012.

Recurring program costs include staff, fuel purchases, taxes, storage tank fees, inspections
and spill prevention equipment and supplies.


                                  FY 12             FY 12            FY 13
Expenditures                                                                           FY 14
                                 Budget           Projected         Budget
Personnel Services                       16,105          34,035          34,966

Services & Supplies                     324,000         400,805         437,900

Capital Outlay                               0                 0                0

                    Total               340,105         434,840         472,866

Funding Source(s)

Charges for Services                       500               174              500

Fuel Sales                              350,000         518,748         485,000

                    Total           350,500            518,922          485,500
                                (10,395 Net)      ($84,082 Net)    ($12,634 Net)

Regular Personnel               0.01 FTE           0.1 FTE          0.1 FTE

Temporary/Seasonal             Fuel Dock          Fuel Dock        Fuel Dock
Personnel                      Attendant          Attendant        Attendant




Santa Cruz Port District FY 13 Budget                                               FINAL
                                                   41
Santa Cruz Port District FY 13 Budget        FINAL
                                        42
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT




Santa Cruz Port District FY 13 Budget               FINAL
                                        43
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

DEPARTMENT SUMMARY

                                         FY 12          FY 12
                                                                            FY 13              FY 14
                                        Budget         Actual9
Expenditures by Category:

Personnel Services                      1,407,297         1,126,155           1,328,371

Services & Supplies                     1,237,388         1,002,015           1,338,250

Capital Outlay                            22,500                   0                   0

Transfers Out                            200,000            200,000                  TBD

          Total Expenditures            2,867,185         2,992,706           2,666,621

Expenditures by Program:

Docks, Piers, Marine Str.                260,151            217,008             250,857

Utilities Maintenance                    185,908             98,129             160,274

Building Maintenance                     252,506            227,297             283,218

Grounds Maintenance                      649,292            644,753             707,251

Aeration Program                          89,397             48,323              58,723

Ice Production                            57,220             26,840              46,592

Capital Projects                          53,787             16,006              58,390

Dredge Operations                       1,121,924         1,049,874           1,201,317

          Total Expenditures            2,667,185         2,328,170           2,766,621

Total Regular Personnel
                                        7.0 FTE        7.0 FTE             12.0 FTE
Funded
Temporary/Seasonal
                                        Varies          Varies              Varies
Personnel




9
 Shaded columns for FY12 year end actual and FY13-14 are included in tables to indicate prior year data is not
available, but will be presented in future years' budgets.

Santa Cruz Port District FY 13 Budget                                                      FINAL
                                                     44
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Docks, Piers and Other Marine Structures

Activities in this program include maintenance and repairs of existing docks and piers; piling
and pile guide replacements; maintenance of floats, seawalls, cranes, jetties, and gangways.

The tsunami damaged 23 of the harbor’s 30 docks beyond repair. Maintenance crews have
expended significant effort keeping the damaged docks safe and usable while they await
reconstruction. Dock maintenance efforts should begin to decline as the docks are replaced
throughout the harbor.



                                  FY 12             FY 12         FY 13
Expenditures                                                                      FY 14
                                 Budget           Projected      Budget
Personnel Services                      158,151        137,154      151,307

Services & Supplies                     102,000         16,433       39,550

Capital Outlay                               0          56,742             0

                    Total               260,151        217,008      250,857

Funding Source(s)

User Fees                               260,151        217,008      250,857

                    Total               260,151        217,008      250,857

Regular Personnel               1.50 FTE          1.5 FTE        1.4 FTE

Temporary/Seasonal
                                   N/A              N/A           N/A
Personnel




Santa Cruz Port District FY 13 Budget                                          FINAL
                                                  45
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Utilities Maintenance

Utility maintenance includes repairs to landside and dock electrical and plumbing facilities;
operation and maintenance of seven sanitary sewer lift stations; maintenance of parking lot,
dock and storage area lighting; and storm drain inspections and cleaning.

A significant amount of work had been expended in the past to maintain electrical facilities in
the south harbor. The entire south harbor electrical system is currently undergoing upgrading
in order to meet current codes and standards for service to the replacement docks. Harbor
staff are working with PG&E and engineering consultants on a design that will provide 30-
amp service to all berths, and 50-amp service to end ties. The cost of the work will be
reimbursed at 94.75% by FEMA/CalEMA. Once completed, it is expected to significantly
reduce the amount of electrical utility maintenance needed in the south harbor.



                                  FY 12             FY 12          FY 13
Expenditures                                                                       FY 14
                                 Budget           Projected       Budget
Personnel Services                      150,908        67,146        114,474

Services & Supplies                      35,000        30,938         45,800

Capital Outlay                               0                0             0

                    Total               185,908        98,129        160,274

Funding Source(s)

Rents                                    30,908        78,503        100,274

User Fees                               155,000        19,626         60,000

                    Total               185,908        98,129        160,274

Regular Personnel               1.40 FTE          0.7 FTE         1.0 FTE

Temporary/Seasonal
                                   N/A              N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                           FINAL
                                                  46
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT


Building Maintenance

There are 25 buildings housing over 40 tenants, harbor administration, operations and
maintenance functions, restrooms and miscellaneous storage facilities throughout the harbor.
Activities include the full spectrum of repairs, paint, carpet, roofing, HVAC, elevator service,
alarm maintenance and cleaning/custodial services.


                                  FY 12             FY 12          FY 13
Expenditures                                                                       FY 14
                                 Budget           Projected       Budget
Personnel Services                      119,006         90,960       116,218

Services & Supplies                     133,500        136,337       167,000

Capital Outlay                           18,000               0             0

                    Total               270,506        227,297       283,218

Funding Source(s)

Rents                                   270,506        227,297       283,218

                    Total               270,506        227,297       283,218

Regular Personnel               1.10 FTE          1.0 FTE         1.1 FTE

Temporary/Seasonal
                                   N/A              N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                           FINAL
                                                  47
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Grounds

Harbor property encompasses approximately nine landside acres that attract thousands of
visitors each year. Activities include maintenance of landscaped areas; parking lots and
meters; striping; signs; fences; walkways; commemorative plazas; retaining walls; litter
collection and control; recycling services; cleaning of impounded boats for lien sale; pressure
washing of docks; street sweeping; and fish table cleaning and maintenance.

The Port District was assisted with grounds maintenance by workers funded by the National
Emergency Grant program. The grant was obtained by the County of Santa Cruz Workforce
Investment Board, and crews were managed by Central Coast Energy Services. The
“SHORR” crews, short for “Shoreline and Harbor Obstruction Removal and Restoration,”
worked throughout the harbor on painting, striping, landscaping, carpentry, weed abatement,
erosion control, storm drainage and general cleanup work.



                                 FY 12               FY 12               FY 13
Expenditures                                                                                 FY 14
                                Budget             Projected            Budget

Personnel Services                  185,042              285,720             261,751

Services & Supplies                 461,250              359,033             445,500

Capital Outlay                          3,000                  0                     0

                    Total           649,292              644,753             707,251

Funding Source(s)

Rents                               236,461              257,901             259,736

User Fees                           412,831              386,852             447,514

                    Total           649,292              644,753             707,251

Regular Personnel              1.70 FTE             3.0 FTE             2.4 FTE
                            Weekend             Weekend
                                                                   Weekend
Temporary/Seasonal          Custodian           Custodian
                                                                   Custodian
Personnel                   Grounds             Grounds
                                                                   Grounds Support
                            Support             Support



Santa Cruz Port District FY 13 Budget                                                FINAL
                                                    48
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Aeration Program

This program involves the annual installation of 24 electric powered aerators mounted in
strategic locations throughout the harbor to respond to high fish count and low dissolved
oxygen events. The harbor had experienced devastating fish kills, primarily schools of
anchovies, in years past, requiring costly cleanup and repair operations. The current aeration
program is a joint effort between the Facilities Maintenance and Engineering Department and
the Harbor Patrol to monitor fish populations and dissolved oxygen levels, and be prepared
to respond quickly to ameliorate poor conditions and prevent another kill.

Aerators are typically installed in April and removed in October. They receive routine
maintenance and are occasionally tested to ensure adequate performance.

During FY 12, large concentrations of anchovies arrived on the Central Coast, along with
whales, dolphins, seabirds and abundant other sea life. Large schools of anchovies entered
the harbor in July and August, causing severely low dissolved oxygen readings for several
days. The aeration program was successful in preventing a fish kill.


                                  FY 12            FY 12          FY 13
Expenditures                                                                      FY 14
                                 Budget          Projected       Budget
Personnel Services                      47,397        20,623         33,723

Services & Supplies                     42,000        27,700         25,000

Capital Outlay                              0                0             0

                    Total               89,397        48,323         58,723

Funding Source(s)

User Fees                               89,397        48,323         58,723

                    Total               89,397        48,323         58,723

Regular Personnel               0.45 FTE         0.2 FTE         0.3 FTE

Temporary/Seasonal
                                   N/A             N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                          FINAL
                                                 49
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Ice Production

Activities involve maintenance and repairs to the harbor's computer-controlled ice plant
located at the fishery pier. The plant includes a complex network of electric motors, plumbing,
and conveyors. Ice is available to commercial fishermen and the public for purchase for
$3.50 per 100 lbs. Harbor staff respond to requests for ice purchases after hour for a nominal
fee.



                                  FY 12            FY 12          FY 13
Expenditures                                                                     FY 14
                                 Budget          Projected       Budget
Personnel Services                      40,220        18,865        26,592

Services & Supplies                     17,000           7,975      20,000

Capital Outlay                              0                0            0

                    Total               57,220        26,840        46,592

Funding Source(s)

User Fees                               57,220        26,840        46,592

                    Total               57,220        26,840        46,592

Regular Personnel               0.35 FTE         0.2 FTE          0.2

Temporary/Seasonal
                                   N/A             N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                         FINAL
                                                 50
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Capital Projects

This program provides staffing to manage the Port District’s Capital Improvement Program.
Work in this section may involve preliminary engineering, such as site inspections or concept
development, grant applications, and other work in support of capital projects. The FY 12
draft budget for capital projects includes staff time for development of the 5-year Capital
Improvement Plan and for managing the Sanitary Sewer Lift Station Rehabilitation projects
funded by the Port Commission in FY 11. This program also lists principal and interest
payments on outstanding loans the Port District has used to finance other projects, e.g. North
Harbor Dock Reconstruction.

Capital projects recommended for FY12 are detailed in the Capital Improvement Program
commencing on page 52 of this Budget Report.

                                  FY 12            FY 12          FY 13
Expenditures                                                                      FY 14
                                 Budget          Projected       Budget
Personnel Services                      29,787        13,051         35,890

Services & Supplies                     22,500           2,955       22,500

Capital Outlay                           1,500               0             0

                    Total               53,787        16,006         58,390

Funding Source(s)

User Fees                               53,787        16,006         58,390

                    Total               53,787        16,006         58,390

Regular Personnel               0.25 FTE         0.1 FTE         0.3 FTE

Temporary/Seasonal
                                   N/A             N/A            N/A
Personnel




Santa Cruz Port District FY 13 Budget                                          FINAL
                                                 51
FACILITIES MAINTENANCE AND ENGINEERING DEPARTMENT

Dredging Operations

Activities involve annual dredging of the channel entrance and selected areas of the inner
harbor, primarily the north harbor where sedimentation from Arana Gulch most impacts
depths. Also included are maintenance and repairs to the dredges Seabright and Squirt and
other equipment (e.g. crane, forklift, pipe welder, and anchors). Dredging activities were
previously budgeted as a separate department and included costs associated with
environmental planning, studies and permits. Environmental efforts are now budgeted
separately under the Administrative Services Department.

                                   FY 12               FY 12              FY 13
Expenditures                                                                                  FY 14
                                  Budget             Projected           Budget
Personnel Services                       673,424            492,636          588,417

Services & Supplies                      444,500            182,002          475,400

Capital Outlay                                 0                  0                 010

Transfers Out11                          200,000            200,000              TBD

                    Total               1,317,924         1,049,814        1,101,317

Funding Source(s)

Transfers In                              40,000                  0                  0

Rent                                      60,000             60,000           60,000

User Fees                               1,217,924           989,814        1,041,317

                    Total               1,317,924         1,049,814        1,101,317

Regular Personnel                0.25 FTE             0.3 FTE            5.3 FTE

                            Dredge Captain
Temporary/Seasonal          Leverman
                                                         Varies          Dredge
Personnel                   Watch Engineer
                                                                        Expediter
                            Deckmates




10
  Capital Outlay related to Dredging Operations is detailed in “Dredging Equipment.”
11
  Transfers Out from Dredging Program budget are contributions to Dredge Intermediate Fund for expenses
detailed in “Dredging Equipment” (page 49).

Santa Cruz Port District FY 13 Budget                                                     FINAL
                                                    52
DREDGING EQUIPMENT


The following major maintenance items have been identified as priority needs for the
dredging program in FY 13:



               Asset                        Item                  Estimated Cost

         Seabright            Test and Rebuild Ladder                      92,000
                              Hydraulic System Rebuild                      5,000
                              Remount Anchor Winches                        5,000
                              Overhaul Jet Pump                             5,000
                              Replace Main Electrical Panel                 5,000
                              Fuel/Water Separator                          3,000
                                                     Sub-total          $ 115,000

         Dauntless            Install Shafts/Props, Replace                 5,000
                              Bearings
                              Major Engine Overhaul                        30,000
                                                      Sub-total            35,000

         Squirt               Various Maintenance                          50,000

                                                     Sub-total             50,000


         Ancillary Equipment
         Cat D5G Dozer Replace (used)                                      35,000
         Forklift        Transmission                                       5,000
         Lorain          Replace Ram                                        5,000
         Anchors, Wire,  Replacements                                       5,000
         Rigging
         Buoys           Paint and Repair                                   1,500
         Pontoons        Service/Replace                                    5,000
         Blazer          Replace (used)                                     2,500
         Flatbed Truck   Major Maintenance                                  1,000
                                                     Sub-total             23,000

                                                       TOTAL            $ 260,000

The work summarized above is expected to prepare the dredge Seabright for what will
potentially be its final full season of work in the Santa Cruz Harbor. Following the 2012/13

Santa Cruz Port District FY 13 Budget                                         FINAL
                                                53
DREDGING EQUIPMENT


season, an inventory of maintenance needed to prepare Seabright for resale will be
conducted and funding proposed in the FY14 budget.

The estimated fund balance in the Dredge Intermediate Fund at the end of FY 12 is
approximately $80,000, resulting in a funding need of $180,000. A transfer from the Long
Term Contingency Fund to the Dredge Intermediate Fund is shown in the Fund Balance
Projections on page 17.




Santa Cruz Port District FY 13 Budget                                      FINAL
                                            54
TSUNAMI RECOVERY


Major tsunami recover projects completed in FY 12 included reconstruction of U Dock,
demolition and reconstruction of V Dock, repairs to the U Dock kayak racks, replacement of
the jet float landing for the FF Dock rowing rack, reconstruction of the J Dock end ties, and
numerous emergency dock and utility repairs throughout the harbor. Projects currently
underway include the demolition and reconstruction of L, M, A and B Docks, the Commercial
Fishery Dock, and construction of south harbor electrical upgrades. Those projects are
expected to be completed in early FY 13.

Tsunami recovery projects planned for FY 13 include:

       Demolition and Reconstruction of N, S, T and E Docks
       Reconstruction of the Rowing Dock, Boatyard and K Docks
       Demolition and Reconstruction of F, C and D Docks
       Demolition and Reconstruction of O, P, Q and R Docks

The prioritization of this work was approved during public meetings held in July and August
2011. The order of work is subject to change depending on the condition and usability of
each dock. Design work on N, S, T and E Docks is currently underway, with an anticipated
construction start date of June 1, 2012.

Expenses associated with tsunami recovery are being reimbursed at 93.75% by FEMA and
CalEMA under the federal disaster declaration FEMA-DR1968. FEMA and CalEMA retain
10% of the reimbursement pending closeout of individual projects. The estimated total cost to
the District for tsunami recovery is $1,072,627 (6.25% of $17,162 total). The District’s up-
front costs and ultimate cost share is currently being financed with DBW emergency loan
proceeds (described in Debt Service on page 56).

The Port District also receives an administrative allowance amounting to approximately 10%
of the estimated project cost. As of January 2012, the District has received approximately
$320,000 in administrative allowance.

Expenses and reimbursements associated with tsunami response and recovery are tracked
separately from routine operations and other liabilities to streamline auditing and reporting.
Expenses and reimbursements to date are tabulated in the “Tsunami Recovery Projects –
Expense/Reimbursement and Cash Flow” included as Appendix A in this budget report.




Santa Cruz Port District FY 13 Budget                                         FINAL
                                              55
CAPITAL OUTLAY

Capital outlay items budgeted in the various departments and programs are described below.

Harbor Patrol Radio Upgrades
Budget (Program): $2,500 (210 – Harbor Patrol)

This item will involve the purchase of three new portable radios that are compatible with the
countywide public safety communications network. Two radios were replaced in FY 12.

High Speed Printer for Monthly Invoices
Budget (Program): $5,000 (110 – Administration)

The new PacSoft Marina Management program will print invoices to a standard color laser
printer. A new high speed printer will be purchased and installed to replace the outdated dot-
matrix printer.

Upgrades to Harbor Office Telephone System
Budget (Program): TBD (110 – Administration)

The harbor office frequently receives complaints from callers who get a busy signal when all
four telephone lines are in use. The existing Avaya phone system could be expanded to
include additional lines or provide other options to callers. The cost of the available options is
currently unknown.


The following items are not included in the FY13 proposed budget, but may be
recommended in FY 14.

Folding and Stuffing Machine for Invoices – Not Budgeted
Budget (Program): $6,000 (110 – Administration)

The new PacSoft Marina Management program being launched for FY 13 prints to any
standard office printer and requires that invoices be folded and inserted into envelopes for
mailing. A folding and stuffing machine could be purchased to avoid having to employ a
mailing service for this task. Funding for this item was budgeted in FY12, but not expended
due to delays in startup of the new marina management program

Generator for Harbor Office – Not Budgeted
Budget (Program): $18,000 (330 – Buildings)

This item would include the purchase and installation of a backup power supply for the
harbor office in the event of a PG&E outage. Funding for this item was budgeted in FY12,
then deleted during the mid-year budget review.



Santa Cruz Port District FY 13 Budget                                           FINAL
                                               56
CAPITAL IMPROVEMENT PROGRAM

The following capital projects are recommended for FY13. Two projects (5-Year Capital
Improvement Plan and Sanitary Sewer Lift Stations Upgrade) were budgeted in FY12 with
funding from the Capital Improvement Fund and Long Term Contingency Fund as noted
below.

Expenses associated with managing the Capital Improvement Program are budgeted in
program 390 (Capital Projects).

Recommended New Projects                                Cost          Funding Source(s)

Seabright Replacement Project
    Engineering/Consulting                                                  Seabright Fund
    Funding Development                                                         ($100,000)
                                                         $250,000
    Requests for Proposals (RFP)                                     Long Term Contingency
       Process                                                                   ($150,000)
    Acquisition Management
Commercial Fishery/Marine Services Center
                                                           10,000       Capital Projects Fund
Upgrade Project – Phase One
Harbor Security Infrastructure Upgrades                    10,000       Capital Projects Fund
5-Year Capital Improvement Plan
                                                           30,000       Capital Projects Fund
(continues from FY12, work in progress)
                                                                        Capital Projects Fund
Sanitary Sewer Lift Stations Upgrade
                                                                                    ($30,000)
(continues from FY12, work to begin spring                 80,000
                                                                      Long Term Contingency
’12)
                                                                                    ($50,000)
                                                                                General Fund
Piling Replacement Program                                 60,000
                                                                           (310-Docks/Piers)
Pavement Repairs and Slurry Sealing of                                          General Fund
                                                           30,000
Various Parking and Storage Lots                                               (340-Grounds)
West Jetty Walkway                                              TBD        Donations / Grants

                                          Total          $470,000

Funding Source(s)                                      Budget

Capital Projects Fund                                      80,000

Seabright Fund                                            100,000

General Fund                                               90,000

Long Term Contingency Fund                                200,000

                                          Total          $470,000


Santa Cruz Port District FY 13 Budget                                            FINAL
                                                  57
CAPITAL IMPROVEMENT PROGRAM


Funding for the recommended projects above is noted in the Fund Balance Projections on
page 17 of this budget report.


PROJECTS:

Seabright Replacement Project
Budget:     $250,000
Funding Source: Seabright Fund/Long Term Contingency Fund

The dredge Seabright, built in 1986, has reached the point in its lifespan where major
maintenance work needed is approaching the cost of a new dredge. In February 2012, the
Port Commission determined that replacement would be more economical, efficient and
reduce long-term maintenance costs than attempting to extend Seabright’s useful life by 10
to 15 years. In addition, US Environmental Protection Agency and Monterey Bay Unified Air
Pollution Control District regulations will require that the engines on Seabright be upgraded
within the next two years, at an additional cost of $700,000-800,000.

The proposed Seabright Replacement Project provides dedicated funding for consultant
services, staff time, travel and miscellaneous expenses associated with the procurement of a
new dredge. The procurement process will involve development of the necessary financing,
specifying the new equipment, completing a Request for Proposals (RFP) process,
contracting for the new purchase, then inspection and oversight at critical phases of the
dredge manufacturing process. Remaining funding will be applied toward final payment to the
dredge builder.


Commercial Fishery/Marine Services Center Upgrade Project – Phase One
Budget:     $10,000
Funding Source: Capital Projects Fund

This project would involve improvements to the facilities located at 493 and 495 Lake
Avenue, buildings that currently house Far West Marine, Harborside Restaurant and
Aquarius Boatworks. The first phase of the project will involve outreach and preliminary
planning for relocating ice production and storage, evaluation of the expansion potential for
the restaurant facility, and potential upgrades to serve the commercial fishery. Additional
work will involve identification of funding sources/partners, and evaluation of potential use of
the boat yard during the City of Santa Cruz’ upcoming Murray Street Bridge Rehabilitation
project.




Santa Cruz Port District FY 13 Budget                                          FINAL
                                               58
CAPITAL IMPROVEMENT PROGRAM


Harbor Security Infrastructure Upgrades
Budget:     $10,000
Funding Source:    Capital Projects Fund

This project would provide for increased wireless surveillance systems throughout the harbor
to improve monitoring and law enforcement capabilities. Additional cameras and recording
devices with remote monitoring capabilities will be installed at key locations.


Development of 5-Year Capital Improvement Plan
Budget:     $30,000
Funding Source(s): Capital Projects Fund

This project was funded in FY 11 using funds that were not needed for the 2010 election, and
was reaffirmed as a budget priority in FY 12. The project involves inspection and inventory of
the harbor's facilities and infrastructure, outreach and communication with harbor
stakeholders, and development of a draft 5-year Capital Improvement Plan for consideration
by the Port Commission. The 5-year CIP would be updated annually.


Sanitary Sewer Lift Stations Rehabilitation Project
Budget:     $80,000
Funding Source(s): Capital Projects Fund

Engineering for this project was funded in FY 11 using in funds that were not needed for the
2010 election. The project involves inspection of the seven sanitary sewer lift stations
throughout the harbor; prioritization of needs for upgrade or replacement; and development
of construction documents (plans, specifications and estimates) for prioritized repairs. Funds
in the amount of $25,000 have been allocated from the new Capital Projects Fund to
commence this work. An additional $50,000 has been proposed for a portion of the
construction costs for the highest priority lift stations.




Santa Cruz Port District FY 13 Budget                                        FINAL
                                              59
CAPITAL IMPROVEMENT PROGRAM


Piling Replacement Program
Budget:     $60,000
Funding Source(s): General Fund

This project is part of an ongoing effort to replace failing wooden pilings with new concrete
pilings in various locations throughout the harbor. Existing pilings needing replacement have
been surveyed and prioritized for replacement. Pile driving work is limited to summer months
due to concerns about impacts to endangered/threatened fish species using harbor waters
the remainder of the year. The Facilities Maintenance and Engineering Department has
identified 50-65 pilings in need of replacement in the south harbor, and 30-40 in the north
harbor. The FY 12 project would replace up to 20 pilings in the south harbor.


Pavement Repairs and Slurry Sealing of Various Parking and Storage Lots
Estimated Cost:    $30,000
Funding Source(s): General Fund

This recurring project would involve pavement repairs in severely damaged (alligatored)
areas, crack sealing, slurry sealing and restriping of the launch ramp area, north harbor dry
storage area and various parking lots.


West Jetty Walkway Project
Estimated Cost:    $1.2 million
Funding Source(s): General Fund/Coastal Conservancy Grant/Donations

This project involves several unique donor funding opportunities along the west side of the
harbor between 'A' dock and Atlantic Avenue, and continuing along the west jetty.
Improvements will include upgraded walkways, retaining walls, overlooks, seating areas and
a variety of artistic treatments. Design work, funded by the Coastal Conservancy, and
development of the donor package are expected to be completed in early FY 13. The Coastal
Conservancy has made available a portion of project funding which could be used in FY 13
to regrade and pave the existing pathway between Aldo’s Restaurant and the concrete pad
on the west jetty.




Santa Cruz Port District FY 13 Budget                                        FINAL
                                              60
DEBT SERVICE


The California Department of Boating and Waterways (DBW) allowed the Port District to
defer payment of $754,586 in FY 12 to assist the Port District in financing the extraordinary
costs of tsunami response and recovery. In addition, DBW granted an emergency loan
amendment which authorized $2.5 million in funding for tsunami-related construction
throughout the harbor. Those funds were drawn in February 2012 to provide sufficient cash
flow to finance contractor payments. Approximately 85% of those payments are reimbursed
by FEMA and CalEMA within 30 to 60 days of application, with an additional 10% retention
released upon close out of the project.

The new DBW funding, combined with increased principal and interest payments on the
California Maritime Infrastructure Authority (CMIA) bonds, increased the Port District’s debt
service to $1,284,323 in FY 13. Estimated payments on the DBW loan assume that the loan
is fully drawn as of July 1, 2012, and that the Port District pays interest only until all tsunami
recovery projects have been completed. It is anticipated that up to $1.5 million will be repaid
to DBW in early FY 15 as the tsunami recovery projects are completed and the
FEMA/CalEMA process is closed out. At that time, payment amounts will be recalculated and
the Port District’s annual payment to DBW will decrease substantially.

During FY 13, while interest rates remain favorable, staff will be seeking opportunities to
finance dredge replacement, pension withdrawal liability (if any), and to potentially refinance
some current debt.

Appendix ‘B’ shows the Port District’s current debt with principal and interest payments due
each year through FY 44 (August 1, 2044) assuming no additional borrowing occurs.




Santa Cruz Port District FY 13 Budget                                           FINAL
                                               61
UNFUNDED PROJECTS


The following projects are not included in the draft capital improvement program budget. Cost
estimates should be considered preliminary unless otherwise noted.


H and I Docks Reconfiguration
Budget:     TBD
Funding Source(s): FEMA/CalEMA and TBD

‘H’ and ‘I’ docks are home to the highest concentration of 20-foot slips in the harbor, and
experience the highest vacancy rates during the off season. Both docks are in need of
complete replacement which is a tsunami disaster-related expense eligible for
FEMA/CalEMA reimbursement of up to 94.5% of the total cost. A conceptual design has
been developed that reconfigures the two docks to share a single brow pier, creating several
30- to 40-foot slips, and improving access. The first phase of this proposed project would
involve completion of conceptual and preliminary engineering design of the new docks, and
application to the California Coastal Commission for a Coastal Development Permit (required
due to the reconfiguration). FEMA/CalEMA funding could be applied to the reconfigured
docks if approved as an “improved project” under their guidelines.


Ice Production Plant
Estimated Cost:    $40,000
Funding Source(s): General Fund/Grants

This project would involve determining the amounts of ice needed to support the commercial
fishery and resident fish buyer, purchasing and installing a new ice machine, reconfiguring
the ice delivery system, and decommissioning the existing ice machine for salvage or resale.
The estimated cost of $40,000 would fund purchase and installation of a new 3-ton per 24
hour machine on the pier adjacent to the fish buyer’s operation and reconfiguration of the
existing delivery system.


Harbor Vehicle Fuel Pump
Estimated Cost:    $35,000
Funding Source(s): General Fund/Fuel Enterprise/Boating Infrastructure Grant

This project would add a fueling station (pump) in the parking area near the harbor office to
service Port District vehicles. The payback period for installing a pump is estimated at 3 to 4
years, considering retail fuel prices and travel time and distance to the harbor's current fuel
vendor.




Santa Cruz Port District FY 13 Budget                                         FINAL
                                              62
UNFUNDED PROJECTS


Electronic Gate and Restroom Key System
Estimated Cost:    $150,000
Funding Source(s): General Fund/US Department of Homeland Security Port Security Grant

This project would update the harbor's existing hard-key gate, restroom and shower locks
with an electronic system operated by key-fob or cards. Electronic gate key systems are
increasingly popular and effective in marine environments. Systems can be hard-wired or
wireless, although wireless networks are more prone to disruption.


FEMA Hazard Mitigation Grant Application-Arana Gulch Sediment Reduction Measures
Estimated Cost:    $25,000
Funding Source(s): Federal Emergency Management Agency Hazard Mitigation Grant
                   Program

This project would involve developing a grant proposal to fund engineering design and
construction of several sediment-reduction measures in Arana Gulch, upstream of the north
harbor. Work on this project commenced in FY 11 with a preliminary application submitted on
the Port District's behalf. The application process was suspended because the Port District is
not eligible to serve as lead agency for the grant and cooperative agreements had not been
executed with the City of Santa Cruz and the County of Santa Cruz for extraterritorial work
sponsored by the Port District.


Parking Pay Stations
Budget:     $100,000
Funding Source: Long Term Contingency Fund

The existing "ticket spitter" at the concession lot is in need of replacement. This item would
fund the purchase of two self-serve pay stations for the concession lot as part of a capital
project (separate funding is budgeted in Capital Projects for construction of pads and utility
connections. Existing long-term employees who staff the current pay booth in the lot could be
trained to manage the system and perform other duties in support of the harbor-wide parking
program.




Santa Cruz Port District FY 13 Budget                                       FINAL
                                             63
UNFUNDED PROJECTS


Installation of Harbor-wide Wireless Internet Infrastructure
Estimated Cost:     TBD
Funding Source(s): General Fund or Private/Franchise Funded

This project would involve the installation of antennas, repeaters, controllers and other
infrastructure to provide wireless internet service throughout the harbor. This project could be
completed by a private party under a cooperative agreement or franchise from the harbor.


Security Lighting Upgrades
Estimated Cost:    $40,000
Funding Source(s): General Fund/California Energy Commission/PG&E

This project would replace existing parking lot, dock and building exterior light fixtures and
bulbs with new, energy-efficient induction or LED fixtures and bulbs throughout the harbor.
PG&E offers "turnkey" design and installation services, and significant rebates for these
upgrades.


Concession Parking Lot Modifications
Estimated Cost:    $175,000
Funding Source(s): General Fund

This project would involve the redesign of the concession parking lot to improve circulation
and increase space numbers and sizes, install self-serve parking pay stations and upgrade
lighting and landscaping.


West Harbor Seawall Rehabilitation
Estimated Cost:    TBD
Funding Source(s): General Fund

The west harbor seawall extends from the pier below Aldo’s Restaurant to approximately ‘FF’
dock near the Murray Street Bridge. Phases for this project would include a condition
assessment performed by a structural engineer, to include an analysis of corrosion;
installation of corrosion protection system, if warranted, and patching, filling or replacement
of any sheet piles, tiebacks or caps as needed.




Santa Cruz Port District FY 13 Budget                                          FINAL
                                               64
UNFUNDED PROJECTS


Storm Drain Improvements
Estimated Cost:    TBD
Funding Source(s): General Fund

This project would involve design, permitting and installation of various storm drainage
facilities throughout the harbor.


Replacement/Remodeling of Various Restrooms
Estimated Cost:    TBD
Funding Source(s): General Fund/Boating Infrastructure Grants

This project would involve developing conceptual designs, preparing grant applications,
completing architectural work and construction/remodeling of aged restroom buildings
throughout the harbor.




Santa Cruz Port District FY 13 Budget                                        FINAL
                                              65
Santa Cruz Port District FY 13 Budget        FINAL
                                        66
APPENDIX A
APPENDIX B
NOTES
NOTES

				
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