| In
response to a complaint, the Grand Jury reviewed the management and operation
of the San Mateo County Harbor District. The District appears to be recovering
from past financial problems. Today, however, it is distracted from its
mission by internal dissension among the Commissioners.
Issue: Are
there ways to improve governance of the San Mateo County Harbor District
(District)? |
| The
District has been the subject of a number of grand jury investigations
over the years and continues to receive unfavorable press. Prior grand
juries have, indeed, recommended dissolution of the District as a cost
savings and efficiency measure.
The District operates
two boating and harbor facilities in San Mateo County. One, at Oyster
Point, is primarily a recreational facility on land owned by the City
of South San Francisco and operated by the District under a joint powers
agreement. The other, Pillar Point, is in the City of Half Moon Bay on
land owned by the District. The latter site combines commercial fishing
and recreational uses.
For the fiscal year
ended June 30, 2000, the most recent year available when the Grand Jury
completed its investigation, the District had income and expenses as follows
(figures are rounded):
| Income and Expense |
Amount |
| Operating Income (including interest and grants) |
$3,220,000 |
| Property Tax Revenue |
1,968,000 |
| Total Income |
5,188,000 |
| Operating Expenses |
4,000,000 |
| Net Surplus |
$1,188,000 |
The surplus is used
to fund reserves, make capital improvements, and repay long term loans
from the State of California, which total approximately $17,000,000.
Members of the 2001-2002
Grand Jury toured the harbor facilities and reviewed prior grand jury
reports, financial reports, leasing documents, and the Local Agency Formation
Commission report. Members of the Grand Jury interviewed the five members
of the Harbor Commission and the Harbor District Manager, and attended
a meeting of the Harbor District Commission. |
| The
Grand Jury members who toured the facilities found Pillar Point and Oyster
Point to be adequately maintained. The District has improved its financial
condition in recent years and has negotiated a more favorable loan payment
schedule. The District has received its consultant's recommended long-range
plan that provides guideposts for future development. The plan indicates
that the District will generate sufficient revenue to pay operating expenses
and capital improvements, and complete repayment of its outstanding loans
on schedule by 2018. The District Manager is knowledgeable and appears
to be successful in negotiating with the State Department of Boating and
Waterways for grants and loans.
There
is, however, major dissension among the Commissioners. There has been
refusal to participate in discussion of, and vote upon, some issues, and
frequent airing of complaints outside Commission meetings. This dissension
distracts the Commissioners and the District Manager from properly conducting
District business. For example, some of the District leases, entered into
some years ago, are not providing optimum revenue.
Because
of the dissension, the District has received unfavorable publicity. The
District needs to overcome the dissension and take steps to improve its
public image. |
