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After considerable talks toward a potential deal, Pittsburg has scrapped a proposal to save money by outsourcing management of its marina.
The city has handed over other city services to private operators over the past year, and is studying whether to do so with its water-treatment plant, as it tackles a $2 million budget deficit.
But a thorough analysis by Pittsburg's legal team of a proposal to have a private contractor assume marina operations convinced the city "to keep things the way they are," City Manager Marc Grisham said. Before the legal analysis, Grisham had said Pittsburg was "fairly far along" in negotiating with one contractor to manage the marina, though he would not say whom.
City Attorney Ruthann Ziegler would not discuss the reason for the legal team's recommendation, citing attorney-client privilege. Grisham also would not discuss the decision.
"It's easier to keep it the way it is. It's not like the marina is losing money," Grisham said.
The city looks at many proposals and ideas that for one reason or another don't work, he said. The marina option is "off the radar completely," he said.
The Pittsburg marina, which is staffed with seven city employees, includes 575 boat slips, fuel service for boaters, a 24-hour public launch ramp and guest berths.
Some had raised questions about the selection process for picking an operator. The sole person the city was negotiating with appeared to be current
Other interested parties said they met with Grisham informally but were told the city decided to negotiate with one person.
Local developer Vince Malifitano said he didn't understand "being shut out" of the selection process, especially because it didn't appear the project was going to public bid.
"This shouldn't have been buried; it should have been out in the open and a public process," he said.
Grisham said the person he was talking with was the most qualified for the job, and he had reservations about others wanting to completely take over marina operations.
Several boat slip owners, though choosing to remain anonymous, also expressed concerns about the process.
When it adopted a general fund budget earlier this year, Pittsburg relinquished control of operations of Delta View Golf Course and city teen and youth services.
In those agreements, Pittsburg found private companies with a local focus and familiarity but did not appear to have a competitive bid process as only one contractor was brought before the City Council for approval. Pittsburg outsourced its teen and youth services to Pittsburg-based STS Academy and golf course to Monterey Golf Management Co.
The moves saved Pittsburg about $275,000, mainly in employee pension obligations.
"It's not that we don't think our employees are doing a great job, but it's hard to make it work if we can't financially afford it," Grisham said.
In July, Pittsburg leaders approved paying as much as $85,000 for Hilton, Farnkopf & Hobson Consultants, LLC to assess operations of the city's water-treatment plant. The goal is to identify ways for Pittsburg to reduce operating costs and whether outsourcing is a viable option, according to a staff report. The study is still being examined.
Paul Burgarino covers Pittsburg and Bay Point. Reach him at 925-779-7164.
