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7 <br /> <br />Funding Sources for Relocation Benefits and Other Costs Associated with Implementing <br />the Docktown Plan <br />In February 2017, the City Council endorsed the following approach to funding costs <br />associated with implementing the Docktown Plan: <br />1. Use currently available one-time sources ($5.4 million). <br />2. Transfer $600,000 each year from the General Fund. These funds can be used <br />to offset expenses or to pay back an interfund loan needed to provide an <br />immediate infusion of cash. <br />3. Dedicate any future ERAF payments that exceed $2.5 million to Docktown <br />relocation expenses. While these payments are not expected indefinitely, the City <br />has received over $4.0 million in ERAF funds for each of the last five years. <br />In addition to these sources, staff recommends that any proceeds from the sale of <br />property acquired at Docktown and that the FY 2016-17 General Fund net operating <br />proceeds (approximately $2.3 million) be used to offset costs incurred with <br />implementing the Docktown Plan. <br />With this approach, the City is essentially amortizing the costs of supporting tenant <br />relocation over multiple years. The number of years required will depend on the amount <br />of future excess ERAF funds received and the financial proceeds from the sale of <br />acquired vessels. Given that the legal liability associated with residential uses at the <br />Docktown Marina has developed over five decades, spreading the costs associated with <br />ending residential uses over a multi-year period is appropriate. <br />As was anticipated, an interfund loan will be required to provide immediate funding for <br />implementation costs. Staff will recommend a loan with the February 26, 2018 Mid-Year <br />Budget update. <br />Recommended Process for Handling Abandoned Property or Property Sold to the City <br />by Docktown Marina Tenants <br />Eight boats and three barge-based dwellings have been acquired by the City to date. <br />Nine of these vessels had to be deconstructed as they were at risk of sinking or <br />otherwise required ongoing maintenance by the City. Staff seeks Council direction on <br />the process for handling the remaining five boats and barge-based dwellings, as well as <br />additional boats and barge-based dwellings sold to the City in the future. <br />In developing the recommended approach, staff did consider whether it was feasible to <br />convert some of the boats or barge-based dwellings to land-based housing. <br />6.1.B. - Page 7