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Report regarding a resolution waiving all fees associated with City permits for the Oyster Point Marina - West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541) project to be funded and performed by the San Mateo County Harbor District. (Sharon Ranals, City Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution waiving all fees associated with City permits for the Oyster Point Marina - West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541) project to be funded and performed by the San Mateo County Harbor District.
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BACKGROUND/DISCUSSION
Since 1977 the San Mateo County Harbor District has operated and improved the Oyster Point Marina under a no-cost agreement between the Harbor District and the City of South San Francisco. The responsibilities of the Harbor District include operations, maintenance, management, and enforcement of applicable rules and regulations of the marina which include floating docks, public fishing pier, and the landside area of the marina property. The 2018 Agreement, which is the current agreement, is due to expire in 2033, with two automatic 10-year extensions.
For several years, the City and Harbor District were aware of the need to raise the fixed dock entry points that act as the land-side connection points of the floating docks. The dock entrances are inundated with seawater during plus tide (King Tides) events, forcing boaters and other dock users to wade through 4-6” of water to navigate between the floating docks and the shoreside landing. Staff expect climate change-related sea level rise, larger winter storms, and continued landfill subsidence to further exacerbate the problem.
Per the agreement, the Harbor District is responsible for the dock systems at Oyster Point Marina, including the connection of the docks to the landside connection points.
The agreement also provides that the City is solely responsible for monitoring and protecting against landside inundation caused by sea level rise and/or landfill subsidence. Further, the City is solely responsible, including taking corrective actions, for damage caused by landfill subsidence.
In light of the shared responsibility for raising the fixed dock entry points, in 2019 the City proposed partnering with the Harbor District to raise the dock entrances during the build out of the Kilroy Oyster Point 1C when the rest of the adjacent park and Bay Trail were improved.
The Harbor District began construction on this critical improvement in May 2025 and construction is expected to continue through October 2025. The City Manager requests that Council consider waiving the ordinance-mandated permit and inspection fees because the improvements are being made to a City-owned asset and the Harbor District is a valued partner in the management of that asset, Oyster Point Marina.
As with all proposed construction projects, the permit fees are calculated based on the value of the construction. With a total construction value based on an awarded bid of $3,395,611 (27% of the Harbor District’s Annual Budget), the Building Division calculated a total of $90,606.91 for plan review, inspections, and associated fees. The break down as follows:
Building Permit B25-1175 - All Plan Reviews, Inspections, and Fees $80,644.87
Encroachment Permit E25-0541 $9,962.04
$90,606.91
As is customary for plan review, a portion of these fees will cover the cost of consulting engineers to perform plan check review and construction inspections. The Building Division estimates $1,410 in direct costs for consultant fees for drawing review, while Engineering anticipates all their $14,962.04 in fees will go to paying consulting engineers for both drawing review and site inspections. Fire also expects to pay $4,363.74 for drawing review, for a total of approximately $20,735.78 in direct costs. As is standard practice, Building and Fire staff will perform all required inspections for work in their purview while Engineering will utilize consultants for inspections.
In the spirit of partnership, the City’s and Harbor District’s shared obligations with regard to the fixed dock entry points, and the benefit received by the City that would result from this project, the City Manager proposes waiving all associated permit fees for the project.
FISCAL IMPACT
While most of the $90,606.91 waiver would impact the City as a loss of revenue, approximately $20,735.78 would be spent directly on expenses related to the project. Staff recommend the Infrastructure Reserve Fund as a source for these expenditures.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan. It aligns with Priority #2, which is focused on enhancing quality of life by building and maintaining a sustainable city, making our city a great place to live, learn and play.
CONCLUSION
Staff recommends that the City Council adopt a resolution to waive all fees for permits related to the Oyster Point Marina - West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541) project to be funded and performed by the San Mateo County Harbor District.
Attachments:
1. Estimated Building Permit Fees (#B25-1175)
2. Estimated Encroachment Permit Fees (#E25-0541)