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i 387 Discussion continued in which Mr. Fales referred to his comprehensive report of July i, 1977 and noted that it is not the �ntent with re- gard to the �ssue to elicit anything from the Board or Council other than a policy decision concerning the future of the Marina. � Further discussion related to the question of whether the Port should be contributing to the City's General Fund, the continuing effort to � introduce new business into the industrial area, need to rehabilitate Port fac7lities; the condition of berth facilities, the fact that �f funds could be found to improve the wharf, additional cargo handling could amount to 100- to 150,000 tons, resulting in additional revenue, � that a great deal of effort and money have been expended toward par- ticipation in government revenues to improve Port facilities, and that the C�ty has been advised that it has complied w�th all requirements and has been approved to receive funds for water and sewer line into the Port area, which will have an important bearin9 on the development plan, which development, in turn, will have an effect on revenue return. It was indicated that further expansion holds great promise, but that the income of the Port �s needed during this period of development to accompl�sh the goals of improving facilities and attracting new in- dustry and commerce It was indicated by the Commission that they would like to be in a position to contribute to the General fund in principle, but the capital investments necessary for rehabilitation and expansion restricts the use of any surplus for that purpose. Council expressed concern if the transfer of �urisdiction of the Marina takes place as to what priority would be given it by the Port, and it ' was suggested by the Commission that there was the possibility that � the Port would not be abie to provide the services now provided by _ the City for Marina, that Port revenues from metals and Texaco are vulnerable and could fluctuate City Manager Fales pointed out that the Marina has always been self-sustaining under the City and tndi- cated that it should not be dependent upon Port income. Discussion continued regarding the logic of the transfer of the Marina to the Port, such as the similarity to the Port's specialized functions; the geographic advantage, the fact that under the business-l�ke opera- tion of the Port more revenue could be generated at the Marina than at present � Mr Fales referred again to his report and the reasons given for the recommendation based on the report of Williams-Kuebelbeck dated 1974 for a Port Development Program, and the more recent Baseline E I R He added that one of the ma�or reasons for the recommendation was the expected purchase of capacity �n the new 565A (South Bayside System ' Authority) facility, and the greater ability of the Port to control the area around the Port if the Marina is placed under its admim s- tration. Another consideration is the fact that the City has a broader realm of responsibilittes to the community as a whole than the Port, with a different set of priorities, while the interests of the Port are more closely related to the Marina. Further comments by Council related to concern regarding a bond ser- � vice loan to improve the harbor, and whether when that is paid the money would continue to be used for Marina improvements. It was noted that about the time the loan is paid off, other obligations for maintenance, including dredg�ng, will be necessary It was indicated by the Commission that the intent would be to operate the Mar�na �n- dependently from the Port -2- Joint Mtg w/Port � S/25/77 ��. Z