Title
Report regarding a resolution authorizing the City Manager or designee to execute a grant agreement for a grant in the amount of $50,000 with the State of California Natural Resources Agency Department of Parks and Recreation Division of Boating and Waterways and authorizing a budget amendment for the Public Works Department’s fiscal year 2026-27 operating budget. (Rich Lee, Assistant City Manager)
label
RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution authorizing the City Manager or designee to execute a grant agreement for a grant in the amount of $50,000 with the State of California Natural Resources Agency Department of Parks and Recreation Division of Boating and Waterways and authorizing a budget amendment for the Public Works Department’s fiscal year 2026-27 operating budget.
Body
BACKGROUND/DISCUSSION
South San Francisco Municipal Code (SSFMC) Chapter 8.78 Mooring Regulations (Mooring Ordinance) was adopted by the City Council in September 2024 and revised in January 2025. The Mooring Ordinance empowered the City to address various health and safety issues on the City’s open waters, including abandoned and derelict vessels, marine debris, and vessel occupancy.
Phase 1 of the City’s Mooring Ordinance enforcement occurred in May 2025, which removed abandoned and unoccupied vessels from the Oyster Point area. In the intervening time, and in support of Phase 2, staff has:
• Executed the First Amendment to the Memorandum of Understanding (MOU) with the San Mateo County Harbor District (SMCHD), included as Attachment 1, which provides for SMCHD to support the City’s enforcement of the Mooring Ordinance;
• Issued a request for proposals from salvage companies for removal of non-compliant vessels;
• Engaged with a marine surveyor to assess vessels as required by the Harbors and Navigation Code (HNC);
• Engaged with a lien consultant to assist in the disposition of vessels; and
• Installed security cameras at the Oyster Point Marina secure dock.
In addition to the above, staff submitted an application to the State of California Natural Resources Agency Department of Parks and Recreation Division of Boating and Waterways (DBW) Surrendered and Abandoned Vessel Exchange (SAVE) in April 2026.
In September 2026, staff received notice of grant award in the amount of $50,000 with a 10% match requirement for DBW’s SAVE program. As noted in Exhibit B of the grant agreement, included as Attachment 2, the terms and conditions define allowable use of the grant funds for the removal and disposition of:
1) Abandoned property as described in HNC 522:
a. “Any hulk, wreck, or parts of any ship, vessel, or other watercraft sunk, beached, or allowed to remain in an unseaworthy or dilapidated condition upon publicly owned submerged lands, salt marsh, or tidelands within the corporate limits of any municipal corporation or other public corporation or entity having jurisdiction or control over those lands, without its consent expressed by resolution of its legislative body, for a period of longer than 30 days without a watchman or other person being maintained upon or near and in charge of the property…”
2) Surrendered vessels as defined in HNC 526.1
a. “…a recreational vessel that the verified titleholder has willingly surrendered to a willing public agency under both of the following conditions:
i. The public agency has determined, in its sole discretion, that the vessel is in danger of being abandoned, and therefore has a likelihood of causing environmental degradation or becoming a hazard to navigation.
ii. The decision to accept a vessel is based solely on the potential of the vessel to likely be abandoned and cause environmental degradation or become a hazard to navigation.”
3) Wrecked or dismantled vessels, or parts thereof, or any other partially submerged object that pose a substantial hazard to navigation, from navigable waterways or adjacent public property, or private property with the landowner’s consent.
Grant funds may not be used for surrender, abatement, removal, storage, or disposal of commercial vessels.
FISCAL IMPACT
Due to the transition period between enterprise resource planning (ERP) systems, the Finance Department will assign a budget adjustment number upon go live of the Workday ERP in November 2026 for an increase of $50,000 in grant revenue and an accompanying increase in the Public Works Department’s fiscal year 2026-27 operating budget.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of the grant agreement with DBW is directly related to the activity/initiative of Phase 2 of the key strategy of Enforce the Mooring Ordinance, which is part of the Infrastructure and the Environment major focus area.
ASSOCIATED DOCUMENTS
1. First Amendment to the Memorandum of Understanding with the San Mateo County Harbor District
2. Grant Agreement