Port of San Diego Municipal Service Agreement
Results and Findings
Item 9.3
Current State MSA
• MSA was entered into on July 1, 2021 and terminates June 30, 2030. • National City receives a baseline allocations of $1,310,324. • Reimbursement for services provided on non-taxable properties: Parks, streets, and open spaces.
• Subject to two periodic Baseline Resets: 7/2022 and 7/2025. • Port Commissioners must approve any baseline adjustment. • Subject periodic adjustments, then an automatic 3% annual increase. • Strict accounting; Payroll, service call tickets, City budgets, timecards etc. • Reimbursed on a quarterly basis to the limits of the MSA.
Changes in Circumstances:
• EV cars, trucks and charging stations create
greater conflagration risks.
• Maritime Clean Air Strategy changes risk
profiles.
• U.S. Border = Higher risk of homeland security
threats.
• Increases in homelessness.
• MSA does not cover full costs of services
provided to the Port.
What the MSA Does Not Include
Full cost of Services:
• Facilities are not apportioned
• Training is not included
• Specialized Equipment not recoverable
• Standby Services, added personnel
• Homelessness Services not paid
• Sewer and stormwater not part of the MSA
• Code enforcement not part of the MSA
Other Cities TOT Revenue
from Port leaseholds 2021
• San Diego $53.6 Million
• Chula Vista $0.4-Gaylord estimated $599
million over 40 years.
• Coronado $4.1 Million
• Imperial Beach $0
• National City $0
Maritime Revenue Est. 2025 $55.7 million
• Pasha Revenue to the Port: 2025 est.
greater than $14.Million
Fire Services
• The MSA does not pay the fully burdened rate for facilities, training, and administrative overhead.
• The Port jurisdiction covers 6% of the land mass of the City. • EV cars stored on the Pasha leasehold, the Port’ s Clean Air Strategy will require new charging stations and more electric trucks.
• The Fire Department will have to purchase new equipment and engage in new training for handling EV fires.
• The total fully burdened services provided to the Port is $1,089,584.00
National City Police
Department
• MSA does not recognize the NC Police
Geographic Beat System.
• MSA does not include training.
• MSA does not include general overhead.
• MSA does not include incident or stolen
vehicle investigations.
• MSA does not include facility costs.
• Beat 24 includes the Port Tidelands and is in
the most south/west region of the City.
• To fully support Beat 24 the Cost is
$7,634,023.00
The Homeless Issue on Port Tidelands
Not Covered By the MSA
• 1. Homeless Outreach
$5,500.00
• 2. Parking Enforcement
$52,800.00
• 3. Graffiti
$19,200.00
• 4. Code Enforcement
$27,000.00
TOTAL:
$104,500.00
Public Works Not Covered By
THE MSA
• City Maintains 9,100 linear feet of sewer
mains across the tidelands jurisdiction.
• 3,700 feet of storm drains and structures.
• Two sewer stations on the tidelands.
• Total annual cost: $120,000.00
Summary
• The City expends approximately $8,848,107.00 per year protecting Port Assets.
• The current base rate for City reimbursement is $1.3
adjusted at 3% annually.
• MSA is event driven instead of enterprise driven.
• The event/service call driven MSA approach results in significant losses to the City each year.
• Reimbursement based on the full cost of each service
enterprise will help make the City whole.
• Recommend that staff appear before the Board of Port
Commissioners and present these conclusions and work
with Port staff to reformulate the MSA approach to
capture the full costs associated with protecting port
assets.