REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF BIG BEAR VALLEY RECREATION AND PARK DISTRICT
AND RECORD OF ACTION
January 23, 2024
FROM
TREVOR LEJA, Assistant Executive Officer, Department of Public Works - Special Districts
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Revenue Use Agreement with Saunderosa, Inc. dba Captain John’s Fawn Harbor and Marina for the Operation of the Dana Point Marina Concession
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the Big Bear Valley Recreation and Park District:
1. Find that approval of a new five-year Revenue Use Agreement with Saunderosa, Inc. dba Captain John’s Fawn Harbor and Marina for operation of the Dana Point Marina concession is an exempt project under the California Environmental Quality Act Guidelines Section 15301 - Existing Facilities (Class 1).
2. Approve Revenue Use Agreement with Saunderosa, Inc. dba Captain John’s Fawn Harbor and Marina, for the use of approximately 10,000 square feet of Big Bear Valley Recreation and Park District-owned land for operation of the marina concession at Dana Point Park on the north shore of Big Bear Lake, for Big Bear Valley Recreation and Park District in the amount of $145,807, retroactively effective for the five-year period of January 1, 2023 through December 31, 2027.
3. Direct the Real Estate Service Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total revenue to be received by the Big Bear Valley Recreation and Park District (BBVRPD) from this five-year Revenue Use Agreement (Use Agreement) is $145,807. There are no other costs to BBVRPD associated with this Use Agreement. Revenue from this Use Agreement will be deposited in the BBVRPD fund (6200002580). Annual revenue is as follows:
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Year |
Annual Revenue |
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January 1, 2023 - December 31, 2023 |
$27,596 |
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January 1, 2024 - December 31, 2024 |
$28,347 |
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January 1, 2025 - December 31, 2025 |
$29,137 |
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January 1, 2026 - December 31, 2026 |
$29,941 |
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January 1, 2027 - December 31, 2027 |
$30,786 |
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Total Revenue |
$145,807 |
BACKGROUND INFORMATION
This five-year Use Agreement provides for the continued operation of the Dana Point Marina concession (Marina) on the north shore of Big Bear Lake by Saunderosa, Inc. dba Captain John’s Fawn Harbor Marina (Captain) commencing and retroactive to January 1, 2023 through December 31, 2027, because of the continuing need to provide water based recreation opportunities and facilities at the Marina in Big Bear.
On February 13, 2018 (Item No. 74), the Board of Directors (Board) approved Revenue Use Agreement No. 18-84 (Agreement) with Captain for the period of March 1, 2018 through December 31, 2022, with one five-year option to extend the term of the Agreement, for the operation of the marina concession at Dana Point Park (Park) on the north shore of Big Bear Lake. BBVRPD is the owner of the Park at which John Saunders, the owner of Captain, has been providing services at the marina for the past 27 years. In 2022, BBVRPD requested Real Estate Services Department (RESD) prepare a formal request for proposals to obtain an operator to provide a commercial boat landing and marina at the Park as Captain had not provided written notice of his intent to exercise the option available under the Agreement. In December 2022, BBVRPD advised that Captain had recently provided verbal notice of its intention to exercise the option and requested RESD to prepare an agreement for Captain’s continued use of the BBVRPD’s use area at the Park. Without the proper notice being given by Captain, the option to extend was no longer valid, however BBVRPD agreed to continue the Agreement for the use of the Marina by Captain. Negotiations with Captain regarding the terms and conditions of the Agreement ensued and on December 31, 2022, the Agreement expired without the benefit of a new agreement. Continuing negotiations regarding the terms of the Agreement have delayed presentation of this Agreement for Board approval. This revised Use Agreement provides for the continued operation of the marina concession at the Park and accomplishes the desires of BBVRPD.
The project to approve this Use Agreement was reviewed pursuant to the California Environmental Quality Act Guidelines (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities (Class 1) because there is no possibility that the use of the subject property will have a significant effect on the environment; therefore, the activity is exempt from the provisions of CEQA.
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Summary of Lease Terms |
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Lessee: |
Saunderosa, Inc. dba Captain John’s Fawn Harbor Marina (John Saunders, President) |
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Location: |
Dana Point Park Marina, Big Bear Lake |
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Size: |
Approximately 10,000 square feet of BBVRPD-owned land |
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Term: |
Five years, commencing and retroactive to January 1, 2023 through December 31, 2027 |
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Options: |
None |
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Rent: |
Monthly: January - April, November - December $500 May - September $4,130; October $3,946 |
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Annual: $27,596 |
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*Mid-range for comparable concession lease agreements in the Big Bear area per the competitive set analysis on file with RESD |
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Annual Increases: |
3% |
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Improvement Costs: |
Provided by Lessee |
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Custodial: |
Provided by Lessee |
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Maintenance: |
Provided by Lessee |
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Utilities: |
Provided by BBVRPD; reimbursed by Lessee |
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Insurance: |
The Certificate of Liability Insurance, as required by the lease, is on file with RESD |
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Holdover: |
Upon the end of the term, if permitted, the Use Agreement shall continue on a month-to-month term upon the same terms and conditions which existed at the time of expiration |
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Right to Terminate: |
Both Parties have the right to terminate with 30-days’ written notice |
PROCUREMENT
The Use Agreement was procured pursuant to County Code of Ordinances Section 18.0103 given that the duration does not exceed five years, the monthly rental does not exceed $5,000, and the Use Agreement is not renewable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Aaron Gest, Deputies County Counsel, 387-5455) on December 28, 2023; Department of Public Works (David Doublet, Assistant Director, 387-7906) on December 28, 2023; Purchasing (Ariel Gil, Supervising Buyer, 387-2070) on December 27, 2023; Finance (Carl Lofton, 387-5404, and Garrett Baker, Administrative Analysts, 387-3077) on December 29, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 29, 2023.
(KB: 677-7961)