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9 <br />owners have expressed interest in buying their vessel for salvage value directly from the <br />City, after the owners have been paid full market value, but that is not consistent with <br />the City’s obligation to protect public funds. Owners who wish to re-purchase their <br />vessels can do so as part of an open auction process. Property scheduled for donation <br />to a non-profit will not be re-sold to the prior owner. <br />FISCAL IMPACT <br />As described above, the City Council approved a multi-year strategy to fund payment of <br />relocation benefits and activities associated with the Docktown Plan. Fundamentally, <br />one-time funds are being used to the greatest extent possible, as well as annual <br />$600,000 transfers from the General Fund and commitment of any ERAF funds over <br />$2.5 million annually. <br />At this time, staff recommends that the FY 2016-17 General Fund net operating <br />proceeds (approximately $2.3 million) and revenues from the sale of acquired property <br />be used to offset costs incurred with implementing the Docktown Plan. <br />Now that the cost of implementing the Docktown Plan, including costs associated with <br />providing relocation benefits and acquiring vessels, can be estimated more accurately, it <br />is clear that an interfund loan will be required as costs incurred this fiscal year will <br />exceed funding in the Docktown Reserve Fund. Staff will recommend an interfund loan <br />mechanism with the February 26, 2018 Mid-Year Budget Update. Such loans have <br />been authorized loans in the past, and would be repaid, in this case, by an annual <br />transfer of $600,000 from the General Fund, as well as payments of any ERAF funds <br />received that exceed $2.5 million annually. <br />ENVIRONMENTAL REVIEW <br />This action is not a “project” within the meaning of the California Environmental Quality <br />Act (CEQA) because the sale will not cause a direct physical change in the environment <br />or reasonably foreseeable indirect change in the environment (Public Resources Code <br />Section 21065; Guidelines Section 15378). <br /> <br /> <br /> <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br /> <br /> <br /> <br />6.1.B. - Page 9