Administrative
Report
N.3., File # 21-3281 Meeting Date: 3/15/2022
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR
TITLE
RECEIVE AND FILE A REPORT ON THE CITY’S SAILING PROGRAM
DISCUSSION AND POSSIBLE ACTION REGARDING FUTURE OPERATIONS OF SAILING CLUB ACTIVITIES AND DIRECTION ON TWO CITY-OWNED INOPERABLE 14’ CATALINA SLOOP SAIL BOATS
EXECUTIVE SUMMARY
The Redondo Beach Community Services Department initiated the Redondo Beach Sailing Program in 1971. The Sailing Program is operated as a not-for-profit community service to the general public.
Both Redondo Beach residents and non-residents in neighboring communities are encouraged to participate. Through sailing instruction, youth sailing camps, community sailboat rentals, and a sailing club comprised of students who have passed requirements, the Sailing Program provides the means for residents of Redondo Beach and the public to access Redondo Beach's King Harbor and the Santa Monica Bay. The sailing club, prior to May 2021, was managed by a local nonprofit - Redondo Beach Sailing Club, Inc. (RBSC). RBSC did not have a formal MOU or similar agreement in place with the City to operate the sailing club; as a result, the City undertook the responsibility of managing the club, its membership, and all maintenance and programming associated with it.
During FY 2021-2022 budget discussions, Council directed staff to provide a report outlining the City’s Sailing Program. On October 13, 2021, the Recreation and Parks Commission (Commission) also requested a report be provided on the status of the Sailing Program. The report was presented to the Commission on November 10, 2021 and continued to the December 8, 2021 meeting. Staff provided the Commission with an overview of the Sailing Program and the management of the sailing club. As part of this discussion, the Commission was also presented with information regarding two slips located within the Portofino Marina designated for nonprofit use. The Commission’s recommendation to the City Council was to direct staff to partner with a nonprofit to assist with sailing club-related activities and to determine the future use of the two slips located within the Portofino Marina.
Staff recommends the City Council receive and file this report outlining the Community Services’ Sailing Program, provide direction on the management of the City’s sailing club, and provide direction on the use of the two nonprofit designated slips located in Portofino Marina.
BACKGROUND
N.3., File # 21-3281 Meeting Date: 3/15/2022
The City’s Community Services’ Department Sailing Program History The Redondo Beach Community Services Department initiated the Redondo Beach Sailing Program in 1971. The Sailing Program was initially operated as a not-for-profit community service to the general public and then later as a director Department function. Redondo Beach residents and nonresidents are encouraged to participate in the program’s various offerings including sailing instruction, youth sailing camps, community sailboat rentals, and a sailing club comprised of students who have passed requirements. The Sailing Program prides itself on providing an opportunity for residents of Redondo Beach and the other members of the general public to access Redondo Beach's King Harbor and experience the Santa Monica Bay. Classes and camps are taught by background checked instructors with a Coast Guard Captain’s License, certified by the American Sailing Association (“ASA”), and who are CPR/AED trained.
Vessel Inventory
The City’s boat fleet utilized for the Sailing Program and sailing club - all docked at the King Harbor Marina - include the following:
· (2) 27’ Cal 227 Sloop (one with a diesel motor; one with a 9.9 HP Honda motor) · 25’ Catalina Capri Sloop (outboard 5 HP Honda motor)
· 26’ Ericson Sloop (diesel motor, radar, auto pilot, GPS) · 13’ Boston Whaler
Sailing club members are able to use one of the 27’ Cal 227 Sloops, the 25’ Catalina Sloop, and one small motor boat. The remaining vessels are dedicated for other instructional sailing classes within the Sailing Program.
Sailing Program Financials
Ongoing annual expenses of approximately $74,613 are allocated toward the management of the Sailing Program (inclusive of equipment maintenance). This figure includes an average calculation of expenses between fiscal years 2018-19 through 2020-21. This form of calculation was used in order to account for the various ways the pandemic altered the Sailing Program - the analysis of a single year does not provide a comprehensive picture of the Sailing Program without the effects of external factors. Included in Table 1 is an itemized list of expenses for these three fiscal years.
Table 1: Fiscal Years 2018-19 - 2020-21 Sailing Program Expenses FY 18/19 FY 19/20 FY 20/21
Personnel and Fringe Benefits $30,3 90 $26,627 $33,175
Materials and Supplies $11,626 $7,851 $46,493
Equipment Maintenance & Operations $13,12 4 $5,300 $13,000 Contract & Services $4,99 9 $2,435 $5,000
Internal Services $3,99 6 $15,745 $4,077
Fiscal Year Total $64,135 $57,958 $101,745
Average Total $7 4,613
N.3., File # 21-3281 Meeting Date: 3/15/2022
Sailing Program expenses include, but are not limited to, the following:
· Slip fees at the King Harbor Marina;
· Membership fees for various sailing organizations, associated supplies, instructor fees and certifications for ASA;
· Upkeep and general boat maintenance including cleaning services for the bottoms of the boats, fuel, and safety equipment;
· Instructor-related expenses such as recertifications and licenses; and · Staff resources including class instructors and program administration.
As an offset to the above listed expenses, the City receives grant funding annually from the California Department of Parks and Recreation Division of Boating and Waterways. Current grant funds total $19,993 and are available for use through May 31, 2022. Another cost-offset for the Sailing Program comes in the form of class registration fees. In total, the average revenue between fiscal years 2018- 19 through 2020-21 is $46,507. Included in Table 2 is Sailing Program revenue for fiscal years 2018- 19 through 2020-21.
Table 2: Fiscal Years 2018-19 - 2020-21 Sailing Program Revenues FY 18/19 FY 19/20 FY 20/21
Personnel and Fringe Benefits $30,3 90 $26,627 $33,175
Materials and Supplies $11,626 $7,851 $46,493
Equipment Maintenance & Operations $13,12 4 $5,300 $13,000 Contract & Services $4,99 9 $2,435 $5,000
Internal Services $3,99 6 $15,745 $4,077
Fiscal Year Total $64,135 $57,958 $101,745
Average Total $7 4,613
*Grant revenue is approximate due to the timing of the acceptance of funds. Allocation and award of funds is approximately $20,000 per year.
Portofino Marina
As part of the CA Coastal Commission’s January 11, 2006 conditional approval of the Coastal Development Permit (CDP) for renovations at the Portofino Hotel (Application No. 5-05-245), two slips within the Portofino Marina were reserved for exclusive use by a nonprofit, equal opportunity sailing club that promotes public recreational sailing. No rent is charged for the two slips, but the slip tenant is responsible for the payment of utilities and insurance. This is further outlined in Attachment 3, page 10, Section 14 of the California Coastal Commission Report.
Currently, these two slips are not being utilized to their maximum potential. There are two Cityowned 14’ Catalina Sloops docked at the slips; they do not have motors and are deemed by Sailing Program staff to be beyond their useful life. It should be noted that the slips located at the Portofino provide a navigationally difficult environment and that all Sailing Program activities are currently conducted out of the King Harbor Marina. This considered, the City may opt to return these two slips
N.3., File # 21-3281 Meeting Date: 3/15/2022
conducted out of the King Harbor Marina. This considered, the City may opt to return these two slips to the Portofino to allow the hotel operator to identify an alternative nonprofit organization to use the slips. It should also be noted that the Portofino’s Coastal Commission CDP permits the opportunity to request additional changes to the use of the slips as described below. Per the Coastal Commission’s CDP conditions for the Portofino, “in the event that additional public recreational boating facilities are being provided within King Harbor (e.g. mast-up storage, public launch ramp, etc.), the permittee may submit a permit amendment request to the Commission to amend or alter the terms of this condition.”
Sailing Club Activities
Following the successful completion of the Basic Keel Boat Sailing class (ASA 101 course), students are eligible to become a member of the sailing club. Membership in the club provides those less experienced students an opportunity to be matched with veteran sailors to gain more hands-on experience and practice their boating skills. Completion of the next level class, ASA 103, provides sailing club members the title of ‘Skipper’ and an opportunity to rent City-owned vessels for private use. Image 1 outlines the progression of courses and opportunities available to sailing club members.
Image 1: Sailing Classes and Sailing Club Opportunities RBSC and the Sailing Program
From 1973 through 2020, the nonprofit Redondo Beach Sailing Club, Inc. (RBSC) had informally partnered with the City to provide sailing club services for club members. Throughout this time, members of the RBSC assisted in various levels of maintenance and upkeep of City-owned vessels.
However, this partnership was not recorded in a Memorandum of Understanding or similar agreement.
In May 2021, when it was deemed safe to resume club activities following strict COVID-19 precautionary measures, the City began collecting membership fees for the sailing club. Previously, all club membership dues were collected independently and retained by RBSC. No portion of membership fees were shared with the City. As the opportunities provided to the public through the
N.3., File # 21-3281 Meeting Date: 3/15/2022
membership fees were shared with the City. As the opportunities provided to the public through the sailing club are dependent on the use of City-owned vessels maintained by the City, staff determined it would be more appropriate for the City to collect and oversee membership fees that could support these activities and have more direct control of program liability. This transition resulted in an increase in Sailing Program revenue to the City totaling $7,200 in fiscal year 2021-2022, which represents membership fees for 24 current members. These revenues are primarily used to offset the cost of maintenance for vessels used by the sailing club.
Recreation and Parks Commission Discussion and Recommendations The Recreation and Parks Commission (Commission) held two discussions regarding the City’s Sailing Program at its November and December 2021 meetings. The Commission shared a general concern regarding the fact that the City had partnered with the RBSC without a formal, written agreement. It also expressed concern over the impetus for the City collecting sailing club membership fees directly when it did and whether there were specific concerns or issues that drove that change. The City’s collection of membership fees was not a reflection of a single incident but was established as a result of staff reviewing its relationship with RBSC and the lack of a formal agreement codifying the terms and conditions within which RBSC operated and addressing liability concerns. Also considered was the fact that there was no revenue to support the sailing club’s activities, all of which rely solely on the use of City vessels and City staff resources.
The Commission also shared concern regarding the City’s use of the two slips at Portofino Marina, questioning whether the City was out of compliance with its agreement with the Portofino. Following its discussion, the Commission made the following recommendations for the Council’s consideration:
· A unanimous desire to correct any noncompliance with the Portofino lease agreement for the slips at the Portofino Marina; and
· That the City should partner with a nonprofit sailing group to utilize the slips at the Portofino Marina and to also assist with the co-programming of sailing activities through the City.
Council Action
Staff is seeking Council direction on how to proceed with the City’s sailing club activities. Based on the Commission’s recommendation, options for the Council’s consideration include:
· Enter into negotiations with a local nonprofit sailing club for an agreement that would allow them to administer club activities in exchange for a percentage of revenue from membership fees. This could be accomplished through the City’s existing Contract Class program that is used for a wide variety of recreational programs and would provide an opportunity for the nonprofit organization to formally partner with the City to administer membership benefits while continuing to collect a portion of membership fees and protect City liability; or · Continuation of the current practice of having the City directly manage the sailing club activities including the handling of all registration and fees.
Staff is also seeking Council’s direction on two items specific to the two nonprofit designated slips in the Portofino Marina:
· Provide direction on whether to donate or sell the two derelict 14’ Catalina Sloops currently docked in the Portofino Marina. They have been deemed by Sailing Program staff to be
N.3., File # 21-3281 Meeting Date: 3/15/2022
beyond their useful life; and
· Provide direction on whether or not to keep the two slips for Sailing Program activities or relinquish them to the Portofino for use by an alternative nonprofit group. Currently, all Sailing Program activities are being administered out of the King Harbor Marina. Staff has been advised that the two slips are also considered navigationally difficult, particularly for learning students.
COORDINATION
The Community Services Department coordinated with the Waterfront and Economic Development Department in preparing this report.
FISCAL IMPACT
Considering the effects of the pandemic on the City’s offering of contract classes and programs, the average annual expenses for equipment and staff resources between fiscal years 2018-19 and 2020- 21 total $74,613. Annual average revenue is approximately $49,507 for this same time period including the annual allocation of approximately $20,000 from the California Department of Parks and Recreation Division of Boating and Waterways grant.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
1. Budget Response Report from 2021-2022 Budget Discussion
2. Administrative Reports and Minutes from the November and December Rec. & Parks Commission Meetings
3. California Coastal Commission Report - 2006