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HomeMy WebLinkAbout; Carlsbad Small Craft Harbor; Carlsbad Small Craft Harbor; 1965-01-01li I , - -1. I CARLSBAD SMALL CRAFT HARBOR C ALI FOIRNIA CARLSBAD SMALL. CRAFT HARBOR CARLSBAD, CALIFORNIA 1965 Byron Barnes, Director of Planning Paul Neal, Project Planner Lawrence Williams, Staff Economist Joe Brown, Engineer ENGINEERING DEPT. LIBRARY City of Cartsbad 2075 Las Palmas Drive Carlsbad. CA 92009-4859 DANIEL, MANN, JOHNSON, & MENDENHALL Planning - Architecture - Engineering - Systems DANIEL, MANN, JOHNSON. & MENDENHALL 1965 DMJM PRESIDENT IRVAN F. MENDENHALL,ce. EXECUTIVE VICE PRESIDENTS PHILLIP J. DANIEL, A.LA. ' ARTHUR E.MANN,A.l.A. S. KENNETH JOHNSON,A.I.A. STANLEY A, MOE, A.l.A. T. K. KUTAY. A.l.A. To the Mayor, City Council, Planning Commission and People of Carlsbad: In accordance with our agreement, we are submitting herewith our report on the Proposed Carlsbad Small Craft Harbor at Aqua Hedionda Lagoon. This report covers the Plajtining, Market Analysis, Engineering and Financial Feasibility of a Small Craft Harbor. We trust this information will result in intensive study by the City Officials as well as its citizens in an effort to form a decision concerning further action on the Small Craft Harbor. The proposals and findings herein are based upon countless hours of re- search and meetings with officials and community representatives in ah effort to thoroughly investigate all facets and ramifications of the Harbor. All members of our staff wish to express their gratitude to the many persons who have assisted us in the preparation of this report. Very truly yours, DANIEL, MANN, JOHNSON, & MENDENHALL Arthur E. Mann Executive Vice President AEM:lr PLANNING § ARCHITECTURE § ENGINEERING § SYSTEMS 3325 WILSHIRE BLVD. • LOS ANGELES, CALIFORNIA 90005 • DUNKIRK 1-3663 • CABLE: DIMJIM LOS ANGELES TABLE OF CONTENTS PAGE LETTER OF TRANSMITTAL LIST OF TABLES LIST OF EXHIBITS SUMMARY OF FINDINGS AND RECOMMENDATIONS INTRODUCTION SECTION 1 SECTION 2 SECTION 3 SECTION 4 PLANNING ANALYSIS MARKET ANALYSIS ENGINEERING CONSIDERATIONS FINANCIAL FEASIBILITY ANALYSIS 111 v 1 3 4 15 35 57 -11- LIST OF TABLES TABLE II III IV V VI Primary Market Area, Cities and Communities Distance to Proposed Harbor Primary Market Population Secondary Market Area Population Resident Boat Ownership, San Diego County and Primary Market Area Boat Ownership Per Thousand Population, San Diego County and Primary Market Resident Non-Portable and Portable Boat Distribution, San Diego County and Primary Market PAGE 18 23 23 26 27 28 VII Resident Non-Portable and Portable Boat 30 Projections, Primary Market Area VIII Berths and Moorings-Curr ent and Projected, 31 Primary Service Area IX Berths and Moorings Requests, Primary Service 32 Area X Annual Portable Boat Laionchings 34 XI Wave Analysis Tabulation - Sea Waves 41 xn Wave Analysis Tabulation, Northern Hemisphere 42 Swell Xin Wave Analysis, Tabulation, Southern Hemisphere 43 Swell XIV Revenue S\immary Proposed Carlsbad Small 73 Craft Harbor Under Full Operation •111- LIST OF TABLES (Continued) TABLE PAGE XV Annual District Revenue and Expense Estimates 79 XVI Estimates Assessed Valuation and Tax Revenues 86 XVn Estimated Construction Costs, Phase I 93 XVni Estimated Construction Costs, Phase II 95 XIX Land Ownership Within District Boundaries 98 XX Area Required for Acquisition by Harbor District 99 XXI Pro-Forma Revenue-Cost Analysis 102 •IV- EXHIBIT LIST OF EXHIBITS PAGE Harbor Plan 14 1 Carlsbad Regional Map 16 2 Project Vicinity Map 20 3 Tide Staff 37 4 Slimmer Prevailing Winds 38 5 Winter Prevailing Winds 39 6 Graduation Curves 47 7 Jetties 8 Typical Section of Entrance 49 50 SUMMARY OF FINDINGS AND RECOMMENDATIONS The following section presents a brief summary of findings and rec- ommendations of this feasibility report for the proposed Carlsbad Small Craft Harbor at Agua Hedionda Lagoon. Findings A sufficient number of small craft facilities will be in demand at Carlsbad to require the construction of a harbor at Agua Hedionda Lagoon by 1970. By 1985 there will be a demand for 2, 100 small boat berths ranging in size from 20 to 6 5 feet at Agua Hedionda Lagoon. Agua Hedionda Lagoon can accommodate 1,625 small boat berths: 450 in the Outer Lagoon, 360 in the Middle Lagoon, and 815 in the Inner Lagoon. The proposed Project Boundary includes approximately 254 acres of land and water area. Sixty-four percent of this area is owned by the San Diego Gas and Electric Company. The proposed harbor is considered in two construction phases. Phase I includes development of the Outer and Middle Lagoons (810 berths), and Phase II includes development of the Inner Lagoon (815 berths). Total cost, at current price levels, for the entire harbor, as proposed, amounts to $16. 3 million: $13.4 million for con- struction and $2. 9 million for acquisition of land and water area. The project can be financed by a combination of Federal, State and local programs. The Phase I program, at an estimated cost of $12. 9 million for construction and property acquisition, is feasible for de- velopment by the District. The Phase II program is not fea- sible for construction by the District until the debt incurred to finance Phase I is retired. Recommendations The City of Carlsbad should initiate proceedings to form the Carlsbad Small Craft Harbor District under authority of Divi- sion VIII, Part 7, of the State of California Harbor and Navi- gation Code. The District boundaries should encompass the area now included in the Oceanside-Carlsbad Union High School District, excluding portions of the City of Oceanside and land and improvements owned by the San Diego Gas and Electric Company. The proceedings to form the District should also authorize the issuance of $3, 100, 000 in revenue bonds by the District as the local share in financing construction of the proposed $12, 828, 000 Phase I harbor development program. The District should contact a local representative or senator to request initiation of studies by the U.S. Army Corps of Engineers leading to the establishment of a $4,482, 000 Federal small boat harbor project at Agua Hedionda Lagoon under the River and Harbor Act. The District should submit this study to the State of California, Department of Parks and Recreation, Division of Small Craft Harbors, in support of its request for $5, 246, 000 in loans from the State under the Small Craft Harbor Law. These loans will include $2, 250,000 to finance property acquisition and construction of revenue-producing harbor facilities and $2,996,000 to construct non-revenue-producing harbor facilities. Upon formation, the District should retain an experienced Harbor Manager to direct the development program and main- tain liaison with the Federal, State and local participants in the development program. The District should retain professional advisors on technical aspects of the harbor development program. Such aspects will include: engineering, planning, finance, legal, and accounting. INTRODUCTION The need for a harbor of refuge in the Carlsbad location has long been recognized by Federal, State and local authorities, as evidenced by many of the legislative committee reports of the Senate and Assembly of the State of California. In 1947, the U.S. Army Corps of Engineers made a preliminary examination of the Southern California coast and reported that the Agua'Hedionda Lagoon was a site worthy of further consideration and study for development in the proposed chain of harbors of refuge on the California coast line. No further steps were taken until after the incorporation of the City of Carlsbad, when in 1956, San Diego County retained an engineer (R. L. Patterson) to prepare a preliminary feasibility study regard- ing the development of the Agua Hedionda Lagoon into a small craft harbor. The 1957 "Report on the Proposed Development of a Small Boat Harbor at Agua Hedionda Lagoon, Carlsbad, California", by R. L. Patterson concluded that the Agua Hedionda Lagoon, when de- veloped into a small boat harbor, would provide a larger water area and larger capacity for boats and more recreational advantages than any other site in this area. The possibilities for future development are greater too, in that there is a large expanse of currently unde- veloped land surrounding the harbor site. Development of this land in conjunction with this development of a harbor could result in greatly increased economic benefit not only to the City of Carlsbad but also to Southern California as a whole. Carlsbad pursued the effort to attain a small craft harbor by contact- ing the Division of Small Craft Harbors, State of California, in 1962 and eventually obtained a loan from that agency to prepare a small craft harbor feasibility study. These efforts have culminated in this report which proposes that Agua Hedionda Lagoon be utilized for a small craft harbor. This report presents the following: a proposed land use and development plan; a market analysis study; a preliminary engineering study; and a finan- cial feasibility study to develop the proposed small craft harbor. -3- SECTION I PLANNING ANALYSIS Concurrent with the Market Analysis and Financial Feasibility Study for the Carlsbad Small Craft Harbor on Agua Hedionda Lagoon, a Preliminary Land Use Plan was evolved to determine the "planning" feasibility. The Carlsbad Small Craft Harbor Project, with a gross area of approximately 254 acres within the project boundary, is located in what is commonly known as Agua Hedionda Lagoon, situated at the southerly portion of the City of Carlsbad. The set of conditions with which the land use plan was developed are as follows: 1. Minimal disturbance to existing harbor or shore facilities. 2. Utilization of only the north shore of the lagoon for small craft harbor facilities. 3. To provide only those facilities which are necessary to and ancillary to the operation of a public small craft harbor. Efforts have been made to create a harbor which will be the focal point of the community, which will become the Carlsbad image and the magnet which attracts new residents, new industry and additional tourism to Carlsbad. The Preliminary Land Use Plan was refined to reflect the input of the Economists' Market Analysis and Financial Feasibility Analysis and to dovetail into the community development, providing a maximum of benefit to surrounding property. The Carlsbad Small Craft Harbor Project Boundary contains only that area which will be utilized for "harbor purposes." The adjacent residential and tourist development is delineated in a manner so that private enterprise may proceed to develop the land as economic demands dictate (See Harbor Plan Map). The street pattern is designed to provide ready access to all parts of the Carlsbad Small Craft Harbor as well as providing adequate circu- lation within the development. Presently, Carlsbad Boulevard crosses the harbor entrance at a very low level. The costs of main- taining the existing route of Carlsbad Boulevard via a bridge struc- ture was weighed against rerouting the street. The decision to •4- reroute Carlsbad Boulevard results in more area being opened for development and better access as well as assisting in keeping the view of the sea in an undisturbed manner. Carlsbad Boulevard is turned to intersect the proposed extension of State Street, parallel to and easterly of the Santa Fe Railroad, State Street extends south- erly to Agua Hedionda (Cannon) Road. Circulation to the Inner Harbor is greatly improved by the addition of the Chinquapin overcrossing of the San Diego Freeway, thereby eliminating the necessity of using heavily traveled Tamarack and its interchange with the Freeway. Chinquapin intersects Harrison Street and Adams Street to provide complete access to all adjoining lands. Adams Street continues on to intersect Park Drive which serves the innermost docking area. Access to the Small Craft Harbor is direct from the Freeway at the Tamarack Interchange, from the Downtown Area by way of either Carlsbad Boulevard or the new State Street extension, from the in- terior area by way of El Camino Real to Agua Hedionda (Cannon) Road, The area within the proposed project boundary will contain only those uses customarily associated with a small craft harbor to provide an integrated and complete marine activity. A partial listing of these uses is as follows: Berthing Parking Eating and Drinking Retail: Grocery - - Delicate s sen Drugs Liquor Personal Services (Barber, Beauty, Laundromat, etc.) Canvas and Sail -5- Electronic Sales and Services Painters and Miscellaneous Marine Service Marine Hardware and Paints Boat Sales Engine Sales Mechanics Marine Brokerage Marine Insurance Marine Surveyors Operations: Rescue Police Fire Coast Guard Operations Portable Boat Operations: Hoist and Launch Parking Dry Storage Clubs and Institutions -6- Living Accommodations: Hotel Motel Cabana Apartments Trailers Marine Haul-out and Repair Gasoline, Oil and Mixed Fuel (boats and cars) Bank Boat Rentals Gear Rentals Auto Service Stations Entertainment and Recreation Harbor Cruises and Water Taxis Sports Fishing Information Center (Administration) Marina Sanitary Facilities Telephones Telegraphic Agency Books Stationery -7- Concessions: Ice Tobacco Cold Drinks Snacks The Market Analysis and Financial Feasibility Analysis, Sections II and IV, have indicated the amount of land necessary to satisfy all the foregoing requirements as well as the number of berths to be pro- vided. The Engineering Study, Section III, has determined the most appropriate manner in which to develop the harbor entrance and facilities. The ocean entrance to the harbor is made through a jetty-protected 400-foot wide entrance channel immediately north of the San Diego Gas & Electric Company's Encina Power Plant outfall. The en- trance channel opens into the Outer Lagoon and then through a nar- row channel of approximately 150 feet in width, continues under a bridge of the Coast Route of the Atchison, Topeka and Santa Fe rail- road to the Middle Lagoon, then continues through another channel of approximately 150 feet in width under the Freeway bridge into the Inner Lagoon. On one side of this channel, the northerly side, is all of the Carlsbad Small Craft Harbor development. The Outer Lagoon provides suffi- cient space for inclusion of approximately 450 small craft berths; the Middle Lagoon provides space for approximately 360 berths; the Inner Lagoon has been planned to accommodate 815 berths in two separate bays. The water area available within the Project Boundary is approxi- mately 160 acres; in the Inner Lagoon there is additional water area of approximately 100 acres not included within the Project Boundary but which would be available for small boat use and water skiing. Outer Lagoon The Outer Lagoon is conceived to be the major focal point of the entire Carlsbad Small Craft Harbor. The berthing facilities in the Outer Lagoon will accommodate approximately 450 small craft. The larger craft and higher or taller-masted sailboats would be docked in this lagoon due to the height-limiting factor of the railroad bridge. The harbor marine restaurant of approximately 3, 000 square feet is located in this Outer Lagoon to provide the greatest view of the har- bor as well as the Pacific Ocean. In conjunction with this restaurant, we recommend that facilities to house the Harbor Master and Harbor Administrative Offices be provided on the top floor or above the res- taurant to provide a clear, unobstructed view of the entire harbor. Functional space for individual marine operations is required adja- cent to the berthing areas. This space, as a minimum, would con- sist of an office-accounting-brokerage area, a retail area for accessories and supplies, a storage area, a public area for lounging, public telephone, vending machines, landscaping, etc. We estimate that for the Outer Lagoon approximately 7, 000 square feet of boat repair yard is required, including dry storage for 50 small craft, a boat hoist, approximately 5, 500 square feet of boat sales, one auto service station, and one marine fuel dock. In addition, it is esti- mated that approximately 11, 700 square feet of retail commercial facilities are needed to adequately serve those who berth their boats in this Outer Lagoon. We propose that the sports fishing pier be located along the southerly entrance to the channel so that this traffic is separated from the pleasure craft which use the harbor. The sports fishing pier along the southerly entrance or jetty to the harbor would have parking ad- jacent to it readily available to accommodate the berthing of four sports fishing craft. The boat repair yard has been located to the extreme easterly area of the Outer Lagoon to shield it from view of the traveling public as much as possible. It is placed immediately adjacent to the railroad and provisions are made for it to expand, if necessary, to the north, as additional growth demands. It is proposed that a marine fuel dock be located adjacent to this boat repair facility so that this one fuel dock could adequately and properly serve both the Outer and Middle -9- Lagoons. The boat repair area will contain a hoist to provide the necessary repair to the craft docked there as well as provide facili- ties to the public wanting service on the larger craft from a hoist. In addition to the facilities being outlined especially for the boating public, it is proposed that additional beach facilities be developed northerly of the entrance jetty with adequate parking area being de- veloped for additional recreational facilities in the small craft har- bor area. The access to the Outer Lagoon is by way of Carlsbad Boulevard or State Street, both streets connecting to the Downtown Area and to Tamarack for a direct Freeway route. Parking is provided on the basis of one space per each berth, plus parking facilities in the Outer Lagoon area to adequately accommo- date the restaurant, retail facilities and administrative facilities. In order to insure a clean and sanitary harbor it is also necessary to place toilet, washroom, garbage and rubbish areas as close to the berths as possible. It is our suggestion that these facilities be grouped to serve two or three banks of berths so that the most unobstructed view possible of the berths and harbor area is provided. The Carlsbad Small Craft Harbor Plan depicts Resort-Tourist and Multiple Residential development northerly of the Small Craft Harbor and outside of the Project Boundary. This has been done in an effort to allow the greatest flexibility in development as well as to allow the private entrepreneur to provide the ancillary facilities of the harbor development. Section IV, the Financial Feasibility Analysis, based revenue estimates on the initial construction of a 50-unit hotel or motel with the develop- ment of the Outer Lagoon. In addition to a hotel or motel, other Resort-Tourist uses such as multiple residential uses, sporting goods shop, boat parts shops, and boat sales can be conducted in the area. That portion of the Resort- Tourist area which is adjacent to the internal residential streets, Garfield, Chinquapin and Olive, is envisioned as containing high quality multiple residential, permanent, semi-permanent or tourist oriented, which facilitates an unencumbered view of the ocean and harbor facility from a higher elevation. The land adjacent to or across the previously mentioned streets is suggested for a multiple residential use where a nautical atmosphere provides the environment and setting for development. 10- Middle Lagoon The Middle Lagoon provides additional space for approximately 360 berths. In addition to the berthed boats at berths, a launching ramp, three lanes wide, is provided with parking for approximately 175 cars and boat trailers nearby besides parking to accommodate those who have boats at the berths. The functional space required to serve the boater within the Middle Lagoon is rather limited due to the proximity to the Outer Lagoon. The only facilities contemplated are approximately 9,000 square feet of retail commercial space, which would include a coffee shop and convenience shops to serve the boaters' needs. Naturally the lock- ers and vending machines and other accessory uses for the boaters will be supplied in a ratio as outlined in Section IV, Financial Feasibility Analysis. Boat repair and fuel facilities provided in the Outer Lagoon are designed to be of the proper size and configuration to also adequately serve the Middle Lagoon. Access to the parking area for the Middle Lagoon is from State Street, as the San Diego Freeway is a physical barrier on the easterly side. The Carlsbad Small Craft Harbor Plan proposes that the land north- erly of the parking area be developed in a Low-Medium residential manner. The Plan proposes that Harbor Drive be connected to Baldwin Lane via a "loop street" method to permit better development and provide a greater amount of frontage. This Low-Medium residential area would provide a limited view of the Harbor due to the confining na- ture of the railroad and the San Diego Freeway. 11- Inner Lagoon The Inner Lagoon is divided into two separate berthing areas for specific reasons and advantages. One reason is to disperse the traf- fic and other problems involved with one large facility to accommo- date 815 berths. Another reason is to encourage development at two different locations around the Inner Lagoon for access from both directions. The Plan proposes that the 815 berths be divided approx- imately in half, with one-half located at each of the two facilities. Another reason is to encourage as much development by private en- terprise as possible around the Lagoon and to avoid disturbing exist- ing water oriented facilities. In conjunction with the development of the Inner Lagoon, Section IV, Financial Feasibility Analysis, recommends approximately 10,600 square feet of commercial structures. This is less than what nor- mally accompanies this number of berths; however, it is anticipated that there will be additional commercial facilities developed on the private lands surrounding the marinas as the demand for such facili- ties requires. The Plan depicts two locations where beaches are proposed near the westerly marina of the Inner Harbor development. The beach imme- diately adjacent to the parking area is suggested to accommodate those who have utilized the launching ramp to place their boats in the water for the day, as well as provide a passive recreation area for those who live close by the marina. A beach along the easterly side of the San Diego Freeway is proposed along with a possible con- cession located at the very southerly end. This concession could be either a small coffee shop or other food service facility placed so that an uninterrupted view of the Inner Harbor is afforded the visitor. This beach could be operated as a public beach or entirely leased out as a concession where a fee is charged for its use, depending upon the policies of the governing body of the proposed Harbor District. A launching ramp, three lanes wide, is provided in each of the berth- ing facilities, along with adequate space to park 175 cars and trailers in the immediate area. Parking to adequately serve the berthed boats is also provided adjacent to the slips, the development of the Inner Harbor is projected into the future so that the launching ramp can be at either of the berthing areas. We have projected costs for a ramp at only one of the berthing areas. Future demands and private enter- prise may demand that two ramps be provided in the Inner Lagoon. -12- It is anticipated that many of the local residents immediately adjacent to these slip areas will have their boats moored here. These berth- ing facilities will draw people to the area who want to become resi- dents because of the easy access to the water and the readily available land for residential development. The lands adjacent to the harbor are proposed for four different kinds of residential development. One area near the westerly berthing facil- ity, although not on the water, is proposed for low density residential development. This will allow those who want to have a single family home near a location to keep their own boats, the privilege of living as they desire. Naturally, lands along the waterfront are shown for both Resort- Tourist and Multiple Residential development. It is anticipated that the Resort-Tourist and Multiple Residential area will develop in a superior manner to take advantage of the waterfront or near- waterfront location. Immediately inland from the waterfront devel- opment and across Park Drive is shown for Low-Medium Residential development. This is shown to encourage a planned-unit type of de- velopment so that as many units as can be provided have a view of the water and still comply with the zoning regulations. Utilization of planned-unit provisions will allow a better apportionment of the view sites and permit the less desirable areas to be used for parking and other required facilities. The area easterly of the Project Boundary indicates a manner in which the owners may develop their land to take advantage of the dredging which the Harbor District must do in order for the Harbor to function. The land immediately adjacent to the easterly berth area is shown so that it can develop either as a total unit of Resort- Tourist or a street put into the area to allow development on a smaller lot basis. Access is greatly improved because there are two berthing areas. The westerly portion can be reached from the San Diego Freeway at the Tamarack Interchange, from the Downtown Area via State Street and the new Chinquapin Overcrossing to either Harrison or Adams and from the interior via El Camino Real to Agua Hedionda (Cannon) Road. The easterly facility can be reached from the San Diego Free- way at the Tamarack Interchange, then to Adams or from the interior by way of El Camino Real and Agua Hedionda (Cannon) Road. 13- CARLSBAD SMALL CRAFT HARBOR AGUA HEDIONDA LAGOON CARLSBAD, CALIFORNIA DANIEL. MANN. JOHNSON, MENDENHALL 3325 WILSHIRE BLVO . LOS ANGELES 3. CALIFORNIA . DUNKIRK 13633 PLANNING I ARCHITECTURE I ENGINEERING s SYSTEMS SECTION II MARKET ANALYSIS A. LOCATION The proposed Carlsbad Small Craft Harbor analyzed in this report is to be constructed in Agua Hedionda Lagoon. Agua Hedionda Lagoon is within the City of Carlsbad in Northern San Diego County. The Lagoon is approximately 6 5 miles southeast of Los Angeles Harbor and 38 miles north of San Diego Harbor. Newport Harbor is 44 miles to the north and Mission Bay is 28 miles south of the Lagoon. The Oceanside Harbor, which was dedicated in June 1963, is 6 miles to the north. Exhibit 1, Carlsbad Regional Map, reflects the general location of the Carlsbad Small Craft Harbor. B. CHARACTERISTICS OF AGUA HEDIONDA LAGOON Agua Hedionda Lagoon is one of eight estuarine lagoons located on the Northern San Diego coastline. These lagoons vary in size from rather small, frequently dry lagoons to lagoons of more than 500 acres each, such as Batiquitos and Agua Hedionda. All the lagoons afford some potential for recreational use. However, Batiquitos and Agua Hedionda have by far the greatest potential for development of a small craft harbor and related on-shore recreational facilities. Currently, the Agua Hedionda Lagoon is used by the San Diego Gas & Electric Company (SDG&E) to provide a cooling water supply to the Encina Power Plant located immediately south of the Lagoon. SDG&E started purchasing the Lagoon property in 1948. The last parcel was acquired in 1953. The Company owns 688. 69 acres of land, which includes 230 acres now covered by Lagoon waters. 1. Outer Lagoon Agua Hedionda Lagoon is divided into what are essentially three la- goons. The Outer , Lagoon is between the Pacific Ocean and the Atchison, Topeka and Santa Fe Railroad right-of-way. This lagoon serves as a settling basin for the cooling waters of the Encina Power Plant. The area is dredged tn an average depth of 12 to 1 3 feetbelow mean lower low water to facilitate normal operation of the SDG&E cooling water system. The Outer Lagoon is not used for recreational boating; and its only recreational use is for shoreline fishing. The -15- CARLSBAD REGIONAL MAP CAMP PENDLETON ' BUENA VISTA LAGOON CARL8BAD' CARLSBAD SMALL CRAFT HARBOR (AGUA HEDIONDA LAGOON SOUTH CARLSBAD STATE BEACH N LEGEND MOUNTAINS [;;:;3ic::;^ AIRPORT • HELIPORT * INDUSTRIAL SITE + HOSPITAL (C) COLLEGE (U) UNIVERSITY ^ GOLF COURSE ^ INTERSTATE HIGHWAY NUMBER JSJ U.S. HIGHWAY ROUTE NUMBER (76) CALIFORNIA STATE SIGN NUMBER SMALL CRAFT HARBOR GRAPHIC SCALE BATIQUITOS LAGOON SAN ELIJO CITY OF SAN OIEGO DEL MAR m EXHIBIT 1 =1= 3 6 MILES LA JOLLA MIRAMAR NAVAL AIR STATION ^ -16- Outer Lagoon opens to the ocean through a narrow channel protected by two jetties 430 feet long and 250 feet apart. All dredging carried on in the lagoon by SDG&E is for the purpose of providing a tidal prism of sufficient volume to give high water velocities through the opening and thus control the accumulation of sediment at that point. 2. Middle Lagoon The Middle Lagoon is bounded on the west by the AT & SF Railroad; on the east by the San Diego Freeway (U. S. 101); and on the north and south by bluffs or steep slopes which vary from approximately 30 to 40 feet in height. Access to the Outer Lagoon is blocked by the AT&SF Railroad trestle, but access is allowable to the Inner Lagoon under a reinforced concrete highway bridge 192 feet long which spans the lagoon in seven spans and is supported on concrete pile bents. The center span is 32 feet with a 26. 8 foot clearance above mean lower low water and the side spans are 26 feet. Limited recrea- tional boating is carried on in this lagoon. Boats may enter from the Inner Lagoon under the highway bridge. Public access to the area is prohibited and it is impractical to swim there since dredg- ing has been carried on to the base of the surrounding embankments. 3. Inner Lagoon The Inner Lagoon extends eastward from the freeway embankment and bridge more than 6, 000 feet. Water depths average 6. 5 feet over the major portion of the dredged lagoon. This depth gradually decreases as the bottom slopes to the surface at the southeastern end of the lagoon into marshy tidal flats that form the estuaries of Agua Hedionda Creek and its tributaries. The Inner Lagoon is extensively used as a water ski area with several commercial boat service facili- ties along the north shore. A number of small sandy beaches, suitable for picnicking or water ski take-off points, are found on both the north and south shores of the lagoon. Some fishing is also carried on in the Inner Lagoon. C. MARKET AREAS For the purpose of this study, two market areas, a primary and sec- ondary, were determined. The primary market area is that area adjacent to the proposed harbor which would most logically include 17- the residences of the majority ofthe proposed harbor's users. The secondary market area is that area from which the remainder of har- bor users would most likely emanate. The market areas are de- scribed and analyzed below. 1. Primary Market Area The primary market area for the proposed Agua Hedionda Small Craft Harbor is located in Northern San Diego County. The total area en- compasses approximately 1, 210 square miles. The area extends from Torrey Pines in the south to the southern boundary of Camp Pendleton in the north, and inland to the crest of the coastal mountains. The area is shown on the Project Vicinity Map, Exhibit 2. Six cities, a portion of the City of San Diego, and eight unincorporated communi- ties lie within the primary market area. The cities are: Carlsbad, Oceanside, Escondido, Del Mar, San Marcos and Vista. The unin- corporated communities are: Fallbrook, Leucadia, Encinitas, Cardiff, Solano Beach, Rancho Santa Fe, Valley Center and Bonsall. All of the cities and communiti!es within the primary market area are within a 30-mile radius of the proposed harbor. Table 1 indicates mileages from each city or community to the harbor. Table I Primary Market Area Cities and Communities Distance to the Proposed Harbor City or Community Mileage to the Harbor Bonsall 16 Cardiff 10 Carlsbad 1 Del Mar 14 Encinitas 8 Escondido 17 Fallbrook 23 Leucadia 7 18- Table I (Continued) City or Community Mileage to the Harbor Oceanside 4 Rancho Santa Fe 12 San Marcos 12 Solano Beach 12 Valley Center 26 Vista 8 Source: DMJM Economics 2. Secondary Market Area The secondary market area includes the remainder of San Diego County, Orange, Los Angeles, Riverside and San Bernardino Coun- ties. The berth and mooring rental information obtained from the Oceanside Harbor District during the DMJM research program indi- cated that a significant number of boaters residing in this area cur- rently keep their boats in the Oceanside Harbor. D. HARBOR LOCATIONAL FACTORS The number of boat Owners desiring berthing and mooring facilities at a given marina location is the primary factor in estimating market- ability of such a facility. There are several pertinent factors which boat owners take into consideration when deciding where to store their boat in a permanent berth or mooring. The most important of these are as follows: Proximity of the harbor to boat owner's residence. Highway accessibility to the harbor. Esthetic and other appealing environmental factors exist- ing at the harbor. Completeness and quality of the harbor facilities. 19- PROJECT VICINITY MAP RIVERSIDE COUNTY RAINBOW/O F.LLBROOK r 1/ ^ ' V IS TA T«IN OAKS' SAN MAttCOS VALLEt CINTEH ESCONDIDO MESA OIIANDr •uTMfBLAMD MfSIKVOtl NANCMO SANTA rc SOLANA ICACM EXHIBIT 2 -20- Protection afforded boats in berths or at moorings. Accessibility to popular cruising and fishing areas. 1 . Proximity and Accessibility Studies of boater habits have consistently indicated that the principal factor considered by boaters in selecting a harbor for berthing or mooring their boats is the distance from home to the harbor. A re- cent survey in the San Francisco Bay Area found that "most of those with berths in the Bay Area live less than 20 miles from the harbor where they keep their boats." In the DMJM 1963 study of the fieasi- bility of a small craft harbor in Port Hueneme, Ventura County, it was determined that 70 percent of the boats berthed or moored in the Santa Barbara Municipal Marina were from the City of Santa Barbara. The same study indicated that 50 percent of the boats berthed or moored in the Ventura Marina were from the City of Ventura. In June 1964, 55 percent of the 284 boats berthed or moored in the Oceanside Harbor were from San Diego County, almost all of which were from the primary trade area. Accessibility can either be enhanced or retarded by the highways and roads leading to the harbor. The proposed harbor will be served by U.S. Highway 101, the principal Pacific Coastal artery, which ex- tends from the Mexican to the Canadian borders, and by freeway Alternate 101, which is a major highway of at least four lanes divided much of the way from San Diego to Los Angeles. This highway affords easy access to U.S. Highway 80, the southernmost trans- continental route, at San Diego and to the other transcontinental routes via Los Angeles and northerly points. California State High- way 78, the main east-west route of central San Diego County, inter- sects U.S. 101 immediately north of Carlsbad. This route provides convenient access to the interior cities of the Imperial Valley as well as to the primary market area communities of Escondido, Vista and San Marcos. Route 78 is a divided, four-lane freeway fromU.S. 101 to Vista, and is now being further improved as a divided super- highway from U.S. 101 to intersect with U.S. 395, the other princi- pal north-south route of San Diego County, at Escondido. 2. Human Factors Esthetic and environmental factors along with completeness and qual- ity of the total complex are of importance in determining whether or not boaters will be attracted to a harbor. The Small Craft Harbor -21- Plan is a completely modern, high-quality, well-designed and protected marina facility. Optimum use of land adjacent to the lagoons has been planned to sat- isfy the needs and desires of not only boaters using the harbor, but also the growing population of "passive" recreationists. The plan includes berths and moorings, small boat launching facilities, dry storage, boat sales and repair facilities, marine-oriented restau- rants and shops, fuel facilities and other ancillary features. 3. Accessibility to Cruising and Fishing Areas Until some ten years ago, ocean-going yachting in Southern California coastal waters was restricted to five harbors on a coastline of over 250 miles. However, during the last 10 years Southern California's coastal small craft harbors have increased in number from 5 to 14. Yachtsmen in Southern California, and particularly in San Diego County now have nearby destinations at distances short enough to provide for reasonably safe anchorages in case of storms. Fishing is attractive in the ocean near Carlsbad. Day and charter boats currently operate out of Oceanside Harbor and prior to that time they journeyed from the Oceanside Pier for many years. E. POPULATION The primary market area is realizing substantial population increase. From I960 to 1964, the PMA population increased by 21.9 percent, from 150,592 to 183,500. Overthe same period, San Diego County population increased by approximately 13.9 percent. Table II indi- cates current and projected population for the PMA and San Diego County to 1985. The table also shows the proportionate share of total County population to be included in the PMA. Table II indicates that over the period to 1985 the PMA population is anticipated to increase by over 203 percent. This is a tripling of current population in the PMA from 183, 500 to an estimated 5 56, 640 in 1985. The secondary market area comprises the remainder of San Diego County, Orange, Los Angeles, Riverside and San Bernardino Coun- ties. The current population of the SMA is approximately 9,631,000. This area is expected to include almost 16 million people by 1985. Table III indicates population expectation for the SMA through 1985. -22- Table II Primary Market Population I960 - 1985 Year Primary Market Area San Diego County PMA as a Percent of County I960 150,592 1, 033, oni/ 14. 6 1964 183,500 1, 176, 542i/ 15. 6 1965 194,400 1,200,000 16. 2 1970 252, 784 1, 366,400 18. 5 1975 338,625 1, 575, 000 21. 5 •1980 443,750 1, 775, 000 25. 0 1985 556,640 1, 960, 000 28. 4 Source: U. S. Census; Economic Research Department, Copley Press, Inc.; DMJM Economics . Table III Secondary Market Area Population I960 - 1985 2/ Year Population 1960 8,434,897 1964 9, 630, 947 196 5 10, 065, 000 1970 11,538,416 1975 12,951,875 1980 14,433,650 1985 15, 950, 000 Source: U.S. Bureau of Census; State Department of Finance. _]^/ Population for June 1. 2/ SMA population is total for Dan Diego, Organe, Los Angeles, Riverside and San Bernardino Counties minus PMA population. • 23- F. RECREATIONAL BOATING Currently, there are more than 286, 300 recreational small craft in California. The postwar increase in boat ownership on both the national and state level has been phenometal. In California, the boat population has increased by some 320 percent since 1950, while total population has increased by slightly under 200 percent. The national total of recreational small craft now exceeds 7. 6 million. In California, the factors causing such growth include an increasing number of large reservoirs, better outboard motors, the economy of the fiberglass boat, larger incomes, more interest in leisure time activities, greater mobility and the development of water skiing as a popular participant sport. Coastal boating, off the 1, 100-mile California coastline, is most pop- ular in Southern California. It is estimated that approximately 70 per- cent of California's total coastal boating occurs from the Northern Santa Barbara County boundary to the Mexican border. Over 80 per- cent of all coastal boating is recreational in nature. The California recreational fleet is composed of boats from about 10 feet to 65 feet in length. California's boating fleet ranks third among all the states following Michigan and New York. However, in terms of boats percapita, California ranks only 22nd among the states with a ratio of 16. 2 boats per thousand population. The primary and secondary market areas for the proposed Carlsbad Small Craft Harbor contain 119, 500 small craft, or approximately 42 percent of the State total. On a per capita basis, the primary and secondary market areas have significantly fewer boats than the re- mainder of the State. The State average is l6. 2 boats per thousand population, and the primary and secondary market area has a com- bined ratio of 12.3 boats per thousand population. This lower ratio is explained by the area's heavy population concentration and the lack of boating facilities in Southern California. G. PRIMARY MARKET AREA DEMAND To determine demand for boating facilities at the proposed harbor, an examination of present and future boating population was made for San Diego County and the primary market area. -24- The small craft fleet in San Diego County is composed of recreational and commercial boats less than 65 feet in length. Commercial boats within this size range are primarily used for commercial fishing. Some of these are documented by the U.S. Bureau of Customs. This report accounts only for those boats registered by the State Division of Small Craft Harbors. 1. Current Boat Ownership Records maintained by the Division of Small Craft Harbors indicate that currently 14,870 registered, non-documented boats under 65feet in length are kept in San Diego County. Of this total, 13, 931 or 94 percent are owned by county residents while the remainder are owned by people residing outside the PMA but within the SMA. Currently, 1,910 boats are either owned or kept in the PMA. Of these, 1, 780 or 93 percent are owned by PMA residents while about 130 are kept at the new Oceanside Harbor but are owned by non-residents of the county. The 1,780 resident boaters in the PMA comprise 13 per- cent of total county resident boat ownership. Table IV shows the num- ber of boats owned in San Diego County, the PMA and selected cities and unincorporated communities in the PMA by length category. The ratio of boats per thousand population in the 5-County Southern California area is 12.3. The ratio for San Diego County is 12.1 and 9. 7 for the PMA. Table V indicates the variations in per capita boat ownership by city within the PMA. The total boat population is a general indicator of demand for harbor facilities in an area. To determine the specific demand for berths and moorings to be included in a proposed harbor, total boats were categorized into non-portable and portable. A non-portable boat is one which is normally stored at a harbor in either a berth, mooring space or on land. A portable boat is a boat which is normally kept at the residence of the user and is transported to and from the har- bor each time it is used. The recently completed State Boating Study provides the best indication of current boater use patterns and de- sires available for the PMA. The indicators developed in that study were used for this analysis. Table VI shows the current distribution of non-portable and portable boats owned by residents of San Diego County and the PMA. The distribution is further categorized by length groups as shown in the table. •25- Table IV Resident Boat Ownership San Diego County and Primary Market Area January 1, 1964 Length Categories - In Feet Location 0-12 13-14 15-16 17-18 19-21 22-25 26-39 40-65 Total San Diego County 2, 368 4, 040 3,622 1, 393 697 697 975 139 13,931 Primary Market Area 321 529 468 189 107 83 77 6 1, 780 Carlsbad 43 38 37 20 13 9 8 1 169 Oceanside 37 70 61 32 34 21 20 1 276 Escondido 92 183 117 31 15 15 16 1 470 Del Mar 8 10 28 16 4 3 6 1 76 Vista 51 60 60 28 20 10 8 2 239 San Marcos 8 20 12 4 2 5 --51 Unincorporated Area 82 148 153 58 19 20 19 -499 Source: State Division of Small Craft Harbors, DMJM Economics. •26- I I I I I I I I I Table V Boat Ownership Per Thousand Population - San Diego County and PMA January 1, 1964 Location Population Boats Boats Per 1,000 Population San Diego County 1,147,497 13, 931 12. 1 Primary Market Area 183,500 1, 780 9. 7 Carlsbad 11,988 169 14. 1 Oceanside 29,949 276 9. 2 Escondido 22,976 470 20. 4 Del Mar 3, 786 76 20. 0 Vista , 20,540 239 11.7 San Marcos 4, 131 51 12. 3 Unincorporated Area 90, 130 499 5. 5 Source: State Division of Small Craft Harbors, DMJM Economics. • 27- Table VI Resident Non-Portable and Portable Boat Distribution San Diego County and the PMA San Diego County Primary Market Area Length - In Feet Non- Portable Portable Total Non- Portable Portable Total 0 to 12 237 2,131 2,368 32 289 321 13 to 14 646 3,394 4,040 85 444 529 15 to 16 507 3,115 3,622 66 402 468 1 7 to 18 334 1,059 1,393 45 144 189 1 9 to 21 342 355 697 52 55 107 22 to 25 627 70 697 75 8 83 26 to 39 975 -975 77 -77 40 to 6 5 139 -139 6 -6 Total 3,807 10,124 13,931 438 1,342 1,780 Percentages 27 73 100 25 75 100 Source: State Boating Study, State Division of Small Craft Harbors, DMJM Economics. •28- I I I I I I I I I The ratio of portable to non-portable boats in San Diego County is 73. 27. In the PMA the ratio is 75:25. 2. Future Boat Ownership The direct method of forecasting future boat population from histori- cal trends did not appear feasible for this study. The problem is that historical data over a sufficient length of time was not available. The State Boating Plan developed forecasts of future boat ownership in California. The method used in this study was essentially a "two step analysis of the positive effect of income and the dampening effect of population density or congestion" on increasing boat ownership. The State study further stated that "the analysis based on income and congestion presents the most reliable forecast of future boat owner- ship in California." On a statewide basis, per capita boat ownership is projected to in- crease to 22.4 boats per thousand population in 1975. This is an increase of 95 percent from 286, 300 currently to approximately 557, 300 in 1975. Estimates indicate that statewide boat ownership should be in excess of 1, 100, 000 by the year 2000. As mentioned above, the 1964 ratio of boats per thousand population in San Diego County is 12. 1. Estimates indicate that the ratio will increase to 18. 0 by 1975. The population projection for the PMA was explained above. By comparing increases in population to in- creases in per capita boat ownership, as shown in the State Boating Plan, an estimate of PMA boat population for 1975 was determined. The population growth and growing popularity of boating allows the assumption that the ratio of boats owned per thousand population in the PMA should at least equal the county average by 1975. The pro- jection of PMA boat ownership reflects this factor. Boating popula- tion for 1985 was determined on the basis of the 1975 ratio of boats continuing at that level through 1985. The projection of boat population in excess of 10 years in the future is subject to many unknown factors which affect its validity rather significantly. Table VII shows the DMJM projection of non-portable and portable boat populations by size category for the PMA currently and for 1970, 1975, 1980 and 1985. These relationships were determined in the Statewide Boater Survey and from local primary and secondary data gathered by DMJM during this study. •29- Table VII Resident Non-Portable and Portable Boat Population Projections Primary Market Area 1964 1 970 19 7 5 1980 198 5 Boat Length (in feet) Non- Portable Portable Total Non- Po rtable Portable Total Non- Portable Portable Total Non- Po rtable Portable Total Non- Portable Portable Total 16 and under 183 1, 135 1,318 4 39 2, 743 3, 182 624 3, 886 4, 510 840 5, 228 6, 068 1, 025 6, 389 7, 414 17 to 21 97 199 296 235 479 714 334 678 1, 012 450 911 1, 361 549 1.114 1,663 22 to 25 75 8 83 182 20 202 257 29 286 347 38 385 424 47 471 26 to 39 77 0 77 189 0 189 268 0 268 361 0 361 441 0 441 40 to 65 6 0 6 13 0 13 19 0 19 25 0 25 30 0 30 Total 438 1, 342 1, 780 1, 058 3, 242 4, 300 1, 502 4, 593 6, 095 2, 023 6, 177 8, 200 2, 469 7, 550 10.019 Source: State Division of Small Craft Harbors; DMJM Economics. •30- Currently, 25 percent of the total boat population are non-portable boats and 75 percent are portable boats. This relationship has been held constant throughout the projections. There appears to be a pref- erence of boat owners to increase the size of the boats they own as they stay with the sport. However, it is not possible to derive, with any analytical precision, varying proportions of boat ownership in the size categories over any length of time. Therefore, this study uses size categories with enough latitude for upgrading size within each category. H. SUPPLY OF BERTHS AND MOORINGS Boats are permanently berthed or moored in two locations within the PMA. These are the new Oceanside Small Craft Harbor and in Agua Hedionda Lagoon. Table VIII shows these facilities and their current and anticipated berthing and mooring capacities. Table VIII Berths and Moorings - Current and Projected Primary Service Area Facility Number of Berths and Moorings Facility 1964 1970 1985 Oceanside Harbor Agua Hedionda Lagoon Totals 5 73 12 623 623 Oceanside Harbor Agua Hedionda Lagoon Totals 585 623 623 Source: DMJM Field Survey I. DEMAND VERSUS SUPPLY By relating current demand for berths and moorings to current sup- ply in the PMA, it is estimated that there was an oversupply of approx- imately 100 berths and moorings in the PMA. This oversupply is due to the construction of the new Oceanside Harbor. As the demand for • 3L berths and moorings in the PMA increases, the existing supply at the Oceanside Harbor will become fully saturated. Table IX indicates the relationship of demand and supply in the PMA to 1985. Table IX Berth and Mooring Requirements Primary Service Area Year Demand"^ Supply Deficit (or Surplus) Estimate 1964 473 585 (112) (100) 1965 665 585 80 80 1970 1, 164 623 541 500 1975 1, 682 623 1,059 1, 000 1980 2, 266 623 1,643 1, 600 1985 2, 765 623 2, 142 2, 100 Source: DMJM Economics It may be noted in Table IX that the current situation in the PMA indi- cates that a harbor at Agua Hedionda Lagoon is not necessary until full use is made of the Oceanside Harbor. DMJM estimates show that by 1970 demand for a 500-boat harbor will necessitate the develop- ment of another small craft harbor in the PMA. This study assumes that this development will take place at Agua Hedionda Lagoon. Preliminary plans have been prepared for harbor developments at San Elijo and Batiguitos Lagoons. It is doubtful that without the full 1/. Demand estimates include anticipated addition of boats desiring berths or moorings in the Agua Hedionda Lagoon from tl^e Secon- dary Market Area. Demand from the SMA is projected at 8 percent of PMA demand in 1964 to 12 percent by 1975 and thereafter. 32- backing of a local public agency these lagoons can be developed to the extent planned for Agua Hedionda. In any event, DMJM estimates of market demand for berths and moorings indicate that the Agua Hedionda site could realize a demand for approximately 2,100 boats by 1985. J. DEMAND FOR PORTABLE BOAT FACILITIES By categorizing projected boat ownership into non-portable boats, an indication is given of the need for portable boat facilities in the PMA. Such facilities include: launching ramps, hoists, monorails, dry- storage facilities, parking and other ancillary features to accommo- date this portion of the boating population. Table VI shows that there are currently 1, 342 portable boats owned by residents of the PMA. Many of these boaters use their craft on inland reservoirs, lakes and rivers. The dangers of ocean boating in small craft have received more and more discussion since the dramatic increase in boat ownership has taken place in Southern California. The Inner Lagoon has been used by small craft for a number of years and is especially noted for its excellence as a water ski area. The estimates of additional water access facilities required, whether launching ramps or mechanical devices, are based on increasing por- table boat ownership, number of available or planned access points and the proportionate share of portable boat owners preferring lagoon and ocean boating to inland facilities. For this analysis, it was assumed that one launching ramp or mechan- ical device could accommodate 4, 000 launchings per year. Table VII shows the PMA projection of portable boat ownership to 1985. It was assumed, through judgment and previous studies conducted by public and private agencies, that 25 percent of the total portable boats in the PMA would do their boating in the lagoons and ocean more than on in- land waterways. The year was broken into two periods. May through September and October through April. The weekend days, holidays and weekdays were then tabulated. Each type day of the week was then assigned a factor for probability of boating activity. The num- ber of various days multiplied by the number of portable boats in the area gave estimates of gross use of portable boats per year. The gross figure was then adjusted, based upon the proportion of use • 33- which should occur in lagoon versus ocean waters. Estimates of annual launchings and water access facility needs are shown in Table X. Table X Annual Portable Boat Launchings and Water Access Point Needs Primary Market Area Y ear Total Launchings Ocean Launchings Access Point Require- ments Access Points Available Access Points Required 1964 93,940 23, 485 5. 9 6 -- 1970 226,940 56,735 14. 2 6 8. 2 1975 321,510 80, 377 20. 1 6 14. 1 1980 432,390 108, 097 27. 0 6 21. 0 1985 528,500 132, 125 33. 0 6 27. 0 Source: DMJM Economics. As indicated in Table X, the supply of water access facilities cur- rently existing in the PMA is satisfactory to meet demand. Here, as in the case of berths and moorings, it will take until 1970 before sufficient demand will exist to require the construction of a signifi- cant number of water access facilities. Summary DMJM estimates to 1985 indicate that demand,at that time will justify the construction of 2, 100 berths and moorings and 27 water access points in the PMA. It is recommended that the Carlsbad Small Craft Harbor be planned consistent with these estimates. -34- SECTION III ENGINEERING STUDY A. EXISTING CONDITIONS Agua Hedionda is a natural estuarine lagoon located about one mile south of the Carlsbad Central Business District and almost entirely within the present city limits. A natural sandbar which has been formed by ocean wave action extends across the mouth of the lagoon. Until the construction of a jetty-protected channel by the San Diego Gas & Electric Company in 1955, the sandbar served to close the mouth of the lagoon from opening into the ocean except during and immediately following occasional breaking and scouring of the bar by accumulated rainfall runoff waters. The eastern, upstream end of the lagoon is fed by Agua Hedionda Creek which provides trans- port for 148, 000 acres of watershed draining into the lagoon. The action of blowing sand from the ocean sandbar coupled with the erosional activity of Agua Hedionda Creek had acted to fill the lagoon to a large extent. Extensive dredging by the San Diego Gas & Electric Company (SDG&E) in 1954 has developed the lagoon into its present condition of a relatively open expanse of water. The jettied channel allows a full exchange of fresh sea water with the changing level of the tides so that the lagoon waters are found attractive to recrea- tional uses. These jetties are 430 feet long and 250 feet apart from center to center. The lagoon has, with considerable detriment to its use as a small craft harbor, been bridged by the Atchison, Topeka & Santa Fe Rail- road trestle and a Division of Highways six-lane freeway bridge. The railroad bridge is constructed of a series of 14 wood pile trestle bents spaced 14 feet on centers, with a clearance above mean low tide of 29.5 feet. The highway bridge is 7 spans supported by concrete pile bents with a center span of 32 feet; the minimum clearance is 23. 9 feet above mean sea level. These bridges divide the lagoon into what is termed the Outer, Middle and Inner Lagoons or basins in this report. An older bridge over the ocean channel is located on Carlsbad Boulevard which traverses the natural sandbar barrier, having once been the route of highway U.S. 101. The San Diego Gas & Electric Company maintains a cool- ing water intake structure on the southerly side of the Outer Lagoon -35- for the provision of ocean water coolant to the Encina Power Plant. The intake system is able to take advantage of the still water condi- tions in the lagoon. The slope of the ocean bottom is moderately gentle and uniform along the lagoon's ocean frontage with the 5-fathom depth running out along a line 160 to 180 feet from shore. B. OCEANOGRAPHIC CONSIDERATIONS 1. Tides The mean tide range is 3. 7 feet. The diurnal range, from mean higher high to the mean lower low water is 5.5 feet. The extreme range from highest to lowest water levels is approximately 10.0 feet. The tide staff applicable to Agua Hedionda is illustrated by Exhibit 3. The difference between mean sea level (1929 datum) and mean lower low water is indicated at 2. 89 feet. Estimates for the highest and lowest tide occurrences are based upon tide gage observations taken at Scripps Institute at La Jolla and Santa Monica Bay observations. 2. Wind The direction of the prevailing winds at Carlsbad differ considerably in the summer from those experienced in the winter. The light winds fall generally in the pattern of the typical ocean shoreline or sea breeze with westerly winds during the day and a reversal of wind at night that comes from off the land. The heavier winds with veloci- ties of greater than l6 mph of the summer occur rather rarely, only . 2 percent of the observations, coming usually out of the west and northwest directions. During the winter both the light and heavy winds come predominantly from the northeast. This occurs approximately 30 to 40 percent and strongly dominates all other directions of wind occurrence. Strong winds of greater than 16 mph occur much more frequently during the winter than in the summer months, 11.5 percent of the total time, and calm periods are generally of a shorter duration. An analysis of the summer and winter prevailing winds for both light and heavy wind occurrences is indicated by Exhibits 4 and 5. Tropical cyclonic storms of extremely high winds have been recorded, originating off the coast of Mexico and progressing •36- i/SC 4 o E3r/MArfP M£AJV M4r£/? M£^A/ LOli^/^/Z s •f ^5 4.8 +-4 + 3 i2 •Af -2-/S A _ 5 _ 6 /^A/^/r/Af^ ^9 7.7 6 ^5 + 4 —o O -2 _3 EXHIBIT 3 •37- HEAi/Y W/A/03 -3^ EXHIBIT 4 l/G/Zr IA//A/D3 -38- L/G//r IV/ND3 EXHIBIT 5 HEAVY l4^/A/03 //S % TOTA I. northward over the ocean approximately parallel to the Baja California coastline. These storms usually strike the California coast from the southwest as a low pressure area surrounded by counterclockwise rotational winds. Experience with these storms has been that they are not usually as violent as the hurricanes of the Eastern and Gulf coastlines to which they are related. 3. Wave Exposure and Sources The shoreline of the Agua Hedionda Lagoon is exposed to unobstructed wave action from the south and southwest through a 70° sector between Los Coronados Islands and San Clemente Island; from the west through a 7° sector between San Clemente and San Nicolas Islands and a 4 sector between San Nicolas and Santa Catalina Islands; and from the northwest through a very small sector between Santa Cruz Island and Point Mugu, and to short period wind waves from the north- west which are limited to a 120-mile fetch by the channel islands and the mainland. The main avenue of approach for Northern Hemisphere swell waves lies between azimuths 259° and 281°. This exposure accounts for 85 percent of all such wave durations of 4, 520 hours per year. The wave heights are 1 foot with a period of 12 seconds. Southern Hemi- sphere swells are evenly distributed between azimuths 169° and 236° with a duration of 6, 090 hours, wave heights from 1 to 2 feet, and a period of 1 3 seconds. Sea waves are evenly distributed between azimuths 326° and 214° except between 281° and 259° where the duration is 790 hours per year with wave heights of 1 to 2 feet and a period of 5 seconds. Both swell and sea waves with heights greater than 10 feet can be expected less than 10 hours per year. The maximum wave to be expected will have a height from 12 to 14 feet and a period of 9 seconds. This wave approaches between azimuths l69° and 191° and also between azi- muths 304° and 326°. Tabulations of sea waves and swell-type waves originating in the northern and southern hemispheres are presented in Tables XI, XII and XIII. A relatively complete description of the wave stations and statistical wave data summarized in preceding paragraphs is con- tained in a report entitled "A Statistical Survey of Ocean Wave Char- acteristics in Southern California Waters, " dated January 1961, which was prepared for the ,Corps of Engineers, U. S. Army, by The Marine Advisors. -40- Table XI Wave Analysis Tabulation Annual Percentage of Occurrence Sea Waves Average total hours l, '^il Dir = <! ft= =0.2 147-168° <1 ft ==3 . 2 169-191° <1 ft=( 3.7 192 -213° <1 ft=4. 1 214-236" ^"•^-«..T(sec) 2-4-6-2-4-6-8-lo-2-4-6-2-4-6-8-10- H(ft)^<^ 3. 9 5. 9 7.9 3. 9 5.9 7. 9 9.9 ll. 9 3. 9 5.9 7. 9 3. 9 5. 9 7. 9 9. 9 11. 9 1-1.9 0 1 0. 6 0. 7 T 0. 2 0. 2 T 1.4 0. 4 0. 5 0. 2 0. 1 2-2. 9 T 0. 3 0. 1 0. 1 3-3.9 T 0. 2 T 0. 1 T 0. 2 4-4. 9 T 0. 1 T 5-5. 9 T 0. 1 T T T T 6-7. 9 T T T T 8-9. 9 T T T T 10-11.9 T 12-13.9 T Dir = <1 ft=l. 7 237-258° :1 ft=14. 0 259-281° :l ft=l. 3 282-303^ :1 ft=3. 9 304-326 6- 7. 9 4- 5. 9 6- 7. 9 9.9 10- 11.9 2- 3. 9 4- 5.9 6- 7.9 8- 9. 9 10- 11.9 2- 3.9 4- 5. 9 6- 7.9 8- 9. 9 2- 3. 9 4- 5. 9 8- 9. 9 1- 1.9 2- 2. 9 3- 3. 9 4- 4. 9 5- 5. 9 6- 7. 9 8-9. 9 10-11.9 12-13.9 0. 3 0. 3 0. 1 T T 0. 1 T 0. 2 T T 0. 1 T 2. 6 1.0 1. 1 0. 6 0. 3 1.5 0. 8 0. 1 0. 1 T 0. 5 0. 2 T 0. 2 T 0. 7 0. 4 0. 3 0. 2 0. 1 T T 2. 2 1. 2 0. 9 0. 5 0. 2 0. 1 T T T Taken from "A Statistical Survey of Ocean Wave Characteristics in Southern California Waters" for Station "C", prepared for the Corps of Engineers by the Marine Advisors, La Jolla, California. "T" means trace, less than 0. 05 percent. •41. Table XII Wave Analysis Tabulation Annual Percentage of Occurrence Northern Hemisphere Swell Average total hours 5, 312 Dir 169-191° 192-213 214-236'- T(sec) H(ft) 0. 1-0.9 1- 1.9 2- 2. 9 3- 3. 9 4- 4. 9 5- 5. 9 6- 7. 9 8- 9. 9 0. 1 0. 1 10- 11.9 0. 1 T T 12- 13. 9 0. 1 0. 3 T 14- 15. 9 0. 1 0. 2 0. 2 16- 17. 9 8- 9. 9 0. 1 lo- ll. 9 0. 1 0. 2 0. 1 T 12- 13. 9 0. 1 0. 3 6- 7. 9 8- 9. 9 T T T lo- ll. 9 12- 13. 9 0. 1 0. 1 14- 15. 9 0. 1 0. 1 18- Dir = 237-258" 259-281° ^•~~--~.,^sec) H(lt) ^"^•^^.^ 6- 7. 9 8- 9. 9 10- 11.9 12- 13. 9 14- 15. 9 16- 17. 9 18-<6 6- 7. 9 8- 9^9 10- 11.9 12- 13. 9 14- 15. 9 16- 17. 9 18- nvii; —^...^ 0.1-0.9 1- 1.9 2- 2. 9 3- 3. 9 4- 4. 9 5- 5. 9 6 - V. 9 0. 1 T 0. 3 0. 1 0. 1 0. 6 T 0. 1 0. 3 0. 5 0. 2 T 0. 1 T 0. 1 0. 9 0.4 0. 1 0. 3 T T 0. 1 0. 2 0. 3 0. 5 0. 1 0. 2 T T T 0. 1 T 0. 1 0. 1 1.8 0. 2 7. 0 0. 7 T 10. 1 1. 7 0. 1 T 8. 0 3. 7 0. 1 0. 1 0. 1 0. 1 3. 5 5. 6 0. 4 T 1. 1 2.9 1. 1 T T 0. 3 1.0 1.2 0. 5 0. 2 T T Taken from "A Statistical Survey of Ocean Wave Characteristics in Southern California Waters" from Station "C", prepared for the Corps of Engineers by the Marine Advisors, La Jolla, California. "T" means trace, less than 0.05 percent. -42- Table XIII Wave Analysis Tabulation Annual Percentage of Occurrence Southern Hemisphere Swell Average total hours 6, 047 Dir = 169--191* 1 192-213° 214-236° '•''^--.^^sec) 12-14-16-18-20-12-14-16-18-20-12-14-16-18- H(ft)^~^-\ 13. 9 15. 9 17. 9 19. 9 21. 9 13. 9 15. 9 17. 9 19. 9 21. 9 13. 9 15. 9 17. 9 19. 9 0.1-0.9 4. 3 3. 2 1.4 0 4 0. 1 2 5 1.2 0. 2 «• 2 T 1 4 4. 7 T 1-1.9 7. 5 7. 2 3. 0 0 5 0. 2 4 6 0. 3 0. 5 T 5 5 4. 1 0. 4 0. 1 2-2. 9 0.9 0. 7 0. 2 T 0 9 1. 2 0. 4 0 1 T 4 0 3. 3 0. 7 0. 1 3-3. 9 T 0 1 0. 4 0. 4 0 2 0 8 0. 9 0. 6 0. 1 Taken from "A Statistical Survey of Ocean Wave Characteristics in Southern California Waters" from Station "C", prepared for the Corps of Engineers by the Marine Advisors, La Jolla, California. "T" means trace, less than 0. 05 percent. •43- 4. Wave Characteristics Waves that break along the shoreline between the San Diego County boundary at San Mateo Point and the International Boundary with Mexico normally range in height from 2 feet to 5 feet. However, large waves ranging from 6 to 10 feet in height are not uncommon. Such large waves can be expected to arrive at almost any time dur- ing the year and to continue for 2 to 4 days at a time. These high- wave episodes are frequently unaccompanied by strong winds. Waves 12 feet to 1 5 feet in height have been observed at Oceanside, Solana Beach, Ocean Beach, and south of Imperial Beach. Wave heights vary considerably from point to point along the shore, and certain areas are consistently subjected to higher breakers than other areas. Wave periods range from 2 to 22 seconds, the more common wave periods falling within the 8-to l6-second range. Observations made at Camp Pendleton and Solana Beach indicate that about 48 percent of the winter waves have a period of 14 seconds, while the same percentage of summer waves have a period of 16 seconds. Seasonal changes in the general wave regimen have been observed all along the coast. Winter waves usually have shorter periods and greater heights, and approach the shore more obliquely than the summer waves. The direction of wave approach varies but is usu- ally within a few degrees (5° to 15°) of normal to shore at all seasons of the year and, along most of the shore, the predominant approach direction is from upcoast of normal. The direction of approach is predominantly from downcoast of normal at Ocean Beach and along Silver Strand between Imperial Beach and North Island. Wave - refraction diagrams for the vicinity of Oceanside for periods of 10 and 12 seconds from an azimuth of 270°, for a period of 8 sec- onds from an azimuth of 225°, and for a period of 16 seconds from an azimuth of 190° were studied. A tabulation of sea and swell wave observations by the Corps of Engineers is indicated in Tables XI, XII and XIII. 5. Design Wave The design wave used for the project is assumed to have a significant height of 14 feet and a period of 9 seconds from the direction of 315°. Other controlling waves have a significant height of 12 feet and peri- ods of 9 and 16 seconds from 315° and 190°, respectively. A 16- second wave from 190° can develop a 10-foot significant height. -44- 6. Currents and Littoral Drift Wave and current observations were made at 8 stations in this area by Scripps Institution of Oceanography in 1946-1947. Average breaker heights ranged from 3. 8 to 4.6 feet during the period of observation. A surf and weather station has been operated near Camp Pendleton Harbor continuously since 1951 by U.S. Marine Corps personnel. A summary of these records shows that north littoral current occurs 37 percent of the time and south littoral current 42 percent of the time. The mean wave period over 4 years of observation was 14 sec- onds, with a mean significant breaker height of 3. 5 feet. The littoral drift in the vicinity of the project is predominantly down- coast with frequent reversals in direction, being generally upcoast in the summer and downcoast in the winter and spring. The net down- coast littoral drift is probably in the order of about 100, 000 cubic yards a year. Accretion occasioned by the downcoast drift will be affected by the Oceanside Harbor breakwater which will trap a portion of the drift, and by the maintenance operations scheduled to pump the entrapped material from the Harbor downcoast to the Oceanside Beach. Plans for the biennial maintenance dredging of some 200, 000 cubic yards per year of material plus the removal every 3 to 5 years of material deposited at the Oceanside breakwater tip at the rate of 100, 000 cubic yards per year will effect the required dredging pat- tern to be adjusted at Carlsbad. It is predicted that the relocated dredged material will be transported to Carlsbad in infrequent but rather large quantities. The provision, therefore, for a rather large sand trap along the northerly portion of the harbor entrance will ac- commodate this material and allow for a more uniform and hence economical removal of the material. Construction of the Carlsbad Small Craft Harbor will affect the north- erly component of drift, blocking it partially from the Oceanside Har- bor. This blocking will alter the present accretion predictions for Oceanside, which may indirectly affect the southerly drift to Carlsbad due to revised Oceanside dredging schedules. This drift may well cause some accretion adjacent to the southerly Carlsbad jetty in the area of the existing warm water outfall, requiring some lengthening of the slope protection for this facility. •45- The experience of the San Diego Gas & Electric Company (SDG&E) with periodically scheduled dredging operation to remove littoral sands which tend to drift into the lagoon is outlined as follows: Dredging Period Material Removed Sept. 1959 - Mar. I960 Jan. 1961 - May 1961 Sept. 1962 - May 196 3 Oct. 1964 - April 1965 370, 000 cu. yds. 227,000 cu. yds. 307,000 cu. yds. 222,000 cu. yds. The sand is brought into the outer lagoon by the scouring action asso- ciated with the incoming tides which is supplemented somewhat by the intake of ocean waters for cooling the SDG&E Encina Power Plant. The intake capability is performed by six 27, 000 gpm pumps. C. DREDGING EXPERIENCE OF THE SAN DIEGO GAS & ELECTRIC COMPANY In order to provide a reliable and adequate supply of cooling water for its $18 million steam generating station, the SDG&E undertook to remove approximately 4 million cubic yards of material from the lagoon. Three dredging rigs were employed, two for the Inner and Middle Lagoon area and a third, purchased by SDG&E for the Outer Lagoon, which is still moored there for periodic dredging of shoal formations near the existing tidal entrance. A joint venture of Franks Dredging Company and the San Francisco Bridge Company was the low bidder for the dredging of the Inner and Middle Lagoons at a unit price of $0. 429 per cubic yard. Soils samples obtained by SDG&E ranged from beach-type sands to relatively fine clays. Gradation curves for four samples obtained are shown by Exhibit 6. Dredging experience showed materials near the ocean are relatively sandy, and that the soil becomes progres- sively more clayey upon proceeding towards the Inner Lagoon areas. Samples A and D were obtained in the Outer Lagoon and B and C from the Inner Lagoon areas. Sample C was taken from the extreme east- erly end of the lagoon. There are large numbers of rocks and cobbles up to 8 inches in diameter in the outer lagoon area. .46- I I I I 0 I I I I I I I I (3 /OMes/? GOA/esJ? /•40A/es^ G/^ADAT/OA/ <::6//?//£3 A<^6<A //££>/<::^Ay^A EXHIBIT 6 -47- All materials dredged from the lagoon, including the inner lagoon, were deposited upon the beach areas fronting on the ocean, with the exception of a plot of ground owned by Mr. Paul Ecke located adja- cent to the lagoon about midway between the channel entrance and the railroad bridge. D. HARBOR ENTRANCE DESIGN 1. Breakwater Configurations The breakwater configuration depicted on Exhibit 7 shows an offshore breakwater located in approximately 30 feet of water. This structure provides protection against wave energy transmission and also acts as a sand trap for littoral transport moving in a southerly direction. The breakwater presents a sheltered location for floating dredge op- eration in bypassing this material downcoast past the more southerly of the two jetties. The two paralleled jetties, oriented generally per- pendicular to the coast, provide an entrance channel 300 feet wide at the bottom (see Exhibit 8). Some amount of chink stones and grouting may be needed in the topmost portion of the armor stone to prevent wave energy surge through the wall structure. The design wave of 14 feet significant height may produce run-up to elevation +18 feet or +19 feet with a still water elevation of +5 feet. Allowing 3 feet or 4 feet of overtopping under this condition enables the crest elevation of the structures to be elevation +15 feet. A de- sign slope of 1:2 on the breakwater seaward face provides most eco- nomical dissipation of wave energy, while the 1:1-1/4 back slope minimizes the quantity of rock required. The jetty slopes of 1:1-1/2 provide economic dissipation of wave en- ergy which it receives at an angle, while providing minimum rock quantities and simplified rock placement. Cap stone will be com- prised of quarried rock weighing between 5 and 8 tons, depending upon the final design. 2. Breakwater and Jetty Footing Depths The breakwater and jetty footings should be constructed to rest upon a level equal to or just below the maximum scour conditions. This is accomplished by placing the foundation levels of the core stone during times of the year when the shore profile is relatively scoured -48- 1 8' 4s. 4 S£:A WA /e-o SIDS CLASS "3' B/^EAKWATE/Z £/e^: ^/S-MLLIV ^^^^^ . ^^^^^y^/^^^J ilElV/ES EXHIBIT 7 •49- c^£3r£L.' -^/sy^iih/ ryP/CAL 3ECr/OA/5 OF EAJ TRANCE EXHIBIT 8 • 50- out, as it periodically is during the winter months. Further beach profile sounding studies are needed to determine the best time for the operation. An alternate technique of dredging by clamshell is also possible. 3. Downcoast Beach Erosion Protection The construction of the proposed harbor entrance jetties in the con- figuration shown by the plan can be expected to alter the effect of downcoast littoral drift in such a manner as to alter the beach sta- bility of the present beach and beach waterline southward from the harbor entrance. Northerly swells and wave action would tend to cause removal of some sand, although to what extent this would be- come a problem is heavily related to the schedule and operation of the sand bypassing system. With periodic sand bypassing, this beach can be adequately maintained. An alternate solution would be to con- struct a beach erosion groin field to protect the beach during periods when bypassing work is not in progress. These groins protect the beach from excessive erosion from northerly swells, while at the same time effecting beach stability and prevention of heavy build-up of sand against the southerly jetty from southern swells. Such build-up would tend to cause the ocean water discharge channel to become choked, and may also cause undesirable silting in the har- bor entrance area. Construction of these groins may either be considered under initial construction or deferred until new equilibrium of the beach is achieved and the effects of the new breakwater and jetty are demonstrated. E. HARBOR DEVELOPMENT 1. Lagoon Dredging Requirements In order to provide water of sufficient depth to accommodate small craft traffic during low tides, it will be necessary to supplement the dredging work previously accomplished. The San Diego Gas & Electric Company reports that the lagoon was originally dredged to approximately 8 feet below mean sea level (MSL). Since the mean lower low water elevation is 2. 6 feet lower than mean sea level, there are times during extremely low tides when boats with 5 feet of draft will not be able to negotiate the lagoon. Also, there is the • 51- problem of sand and silt shoaling, especially at the entrance and near the scoured-out constrictions to tidal flow caused by the two bridges. Some additional depth will be required as a safety factor to offset the shoaling phenomenon. An additional 2 feet of dredging over the Mid- dle and Inner Lagoon bottom areas, bringing them to an elevation of minus 10 MSL, is recommended. The Outer Lagoon has been dredged periodically by the San Diego Gas & Electric Company. Soundings taken in the Outer Lagoon indicate that the average depth is now something more than minus 12 MSL. There is a characteristic shoal that builds up each year just inside the lagoon entrance, and this shoal is sometimes less than 5 feet below the water surface. It should be noted that the dredged depth at the present time is con- siderably deeper (about minus 12 MSL) than the original dredging operation (minus 8 MSL), and records show that SDG&E has succes- sively deepened the Outer Lagoon over the past 10 years. The dredge, called "La Encina," is too large to move into the Middle and Inner Lagoon areas; therefore, these waters represent the condition of dredging in 1954 as modified by shoaling and sedimentation of the past 11 years. 2. Harbor Slope Protection Several kinds of slope protection, including sand beaches, riprap sloped revetment and some vertical bulkheads are to be used to sta- bilize and protect the shoreline along the harbor shorelines. Sand beaches are to be constructed at slopes of approximately 10 to 1 and will extend to a lower elevation of approximately 3 feet below the lowest tidal range. Riprap slope protection is provided by an armor stone layer laid over a filter course of gravel material. Stone of a weight range of 50 to 100 pounds in a layer approximately 18 inches thick will generally be sufficient except in the constricted bridge areas where heavier protection shall be necessary. Vertical wall bulkheading for the boat hoist area is to be provided by reinforced concrete sheet piling or poured-in-place "L-wall" sections on piles, if more detailed engineering studies should show that de- watering will not be a serious problem. 52- 3. Boating Accommodations Berthing places are provided in the form of mooring slips within the harbor with room for anchorages in the lee of the proposed break- water. Float type moorings with a central walkway and finger floats used for mooring and craft access provide the most economical and convenient boat accommodations. A system of floating docks willbe found most adaptable to the rather extensive tidal fluctuations. Wood, concrete or synthetic plastic pontoons are utilized to support the wooden walkways which should consist of an 8-foot main walk and 4-foot-wide lateral fingers. Floating walkways are anchored in posi- tion with piles which may be wooden or concrete. Access between the shore and mooring slips is provided by means of a hinged ramp which is supported upon the float deck by wheels. The steepness of the ramp alters with high and low tide fluctuations. Water, electricity and telephone services wiring are installed to each mooring space by means of suspending the lines under the deck of the slip structure. Sizes of the mooring slips will range generally from 22 feet to 44 feet. The space between the protruding finger docks will be 35 feet for the smaller craft and not less than 70 feet for larger craft which use the 44-foot slip length. Berths for the few larger craft are available at the ends of the slip moorings. An enumeration of slip sizes for the ultimately developed harbor'is given by the following tabulation: Berth Size (feet) Number of Berths Percent of Total 22 989 60. 8 28 381 23. 4 34 250 15. 4 44 5 0. 4 1,625 100. 0 •53- Studies of small craft ownership in the primary market area indicate that a substantial percentage of craft are less than 12 feet and that there is a large ownership of from 12 to 14 feet. Berths shorter than 22 feet in length are not recommended to accom- modate these small craft because two of them can be moored in tan- dem to some of the larger berths. Tandem arrangement is not, however, recommended for boats longer than 18 feet since maneu- vering for ernbarking and docking in tandem becomes more critical. 4- Marine Fueling Stations Two floating fueling stations are needed for the ultimate development of the harbor. They are located as a part of the boat repair facility in the Outer Lagoon and with boat launching ramp near the freeway bridge in the Inner Lagoon. These locations are convenient to the general routing of boat trips within the harbor and will accommodate waiting boats without causing congestion. The element of fire hazard makes it advisable to locate fuel storage tanks and pumping equipment on the shore with fuel lines extending out beneath the floating piers. The deck of the marine station should be higher than the general aver- age of boat decks to eliminate the lifting of hoses to drain, which fre- quently causes fuel spillage. 5. Boat Hoists and Launching Ramps Heavier boats are hoisted into the water by means of an efficient elec- tric powered hoisting apparatus to be located in the Outer Lagoon. The hoist should be capable of lifting at least a 10-ton or 15-ton craft into the water. About 15 boats per hour will be possible, and this capa- bility will be quite sufficient for the anticipated boat hoist traffic. Boat launching ramp locations are provided in the Inner and Middle Lagoon areas. A ramp width of 70 feet is recommended so that three boat trailers could be accommodated at one time. Trailer parking is conveniently located in areas immediately adjacent to the ramps. The ramp is to be constructed of durable concrete with scored surfacing within the tidal range for better vehicular wheel traction. A 10 per- cent slope is recommended as a safe ramp slope, and each ramp will be furnished with an adjacent float for the temporary, tie-up of boats during the time that the boat trailers are being parked. 54- F. ESTIMATED CONSTRUCTION COST 1. Basis of Estimate Costs are based upon prices as of the date of this report and will be generally applicable for construction completed within the subsequent 18 months. Construction accomplished during the later phases of the development program should be escalated by approximately 4 percent per year, if the current trends in construction cost increase continue in the future. 2. Estimate Breakdown The estimated construction cost has been broken down into the three broader categories of marine, land, and building improvements. Under these categories are itemized the detailed elements of cost. 3. Apportionment of Land Improvements Cost The cost of land improvements will not, in some cases, be totally chargeable to harbor development. Some of the streets will undoubt- edly be constructed by adjacent ownerships who might, due to the stim- ulation caused by the harbor's development, decide to subdivide their holdings. There is also the possibility that a portion of the secondary and major streets would become egible for certain city and county improvement programs, usually under the Collier-Unruh gas tax fund for street improvements. The construction of the proposed new State Street Extension Bridge, for example, would qualify for gas tax funds as an improvement to State Street which is to be in the secondary high- way classification. -55- AQUA HEDIONDA COST ESTIMATE TABULATION Lagoon I II ni TOTAL Outer Middle Inner Marine Improvements Outer Breakwater 3, 200,000 3,200,000 Jetties 3,480, 000 3,480, 000 Dredging 260,000 25,000 500,000 785,000 Riprap Slope Protection 50,000 40,000 84,000 174,000 Bulkheading 12,000 12, 000 Berthing Facilities 350,000 230,000 521,000 1,101,000 Navigational Aids 18, 000 1, 000 19,000 Launching Ramps 13,500 13, 500 27,000 7. 370,500 309,500 1, 118,500 8, 798, 000 Land Improvements Earthwork 40,000 35,000 75,000 150,000 Streets 48, 000 60,000 108, 000 Parking 211,000 79,000 147,000 437,000 Promenades and Walks 15,000 8, 000 11,000 34, 000 Landscaping 15,000 3,000 5, 000 23,000 Street Lighting 10,200 24,000 34,200 Area Lighting 31,500 3, 000 11,000 45,500 Water Distribution System 33, 000 44,500 83, 000 160, 500 Sanitary Sewer System 109,600 15,000 17, 000 141,600 U, G, Power System 26,000 5, 500 63,000 94, 500 Bridge, RR Undercrossing 95,000 95, 000 Bridge, RR Lagoon 210,000 210,000 Bridge, State Street Ext. (1/2 portion) 84,500 84,500 539,300 582, 500 496, 000 1, 617, 800 Building Improvements Maintenance Bldg. (3, 500) 17, 500 Dredging & Maint, Equip. 175, 000 192, 500 Totals 8, 101,,800 Engrg, Const. Superv. Legal & Admin. Costs - 15% 1.215, 270 Totals 9,322,245 Contingencies GRAND TOTAL 17,500 175,000 -0- -0- 192,500 892,000 1,614,500 10,608,300 133, 800 242,175 1, 591,245 1,025,800 1,860,700 12,199,545 1.219,955 13,419,500 -56- SECTION IV FINANCIAL FEASIBILITY ANALYSIS A. GENERAL The market analysis determined the potential for a small craft harbor at Agua Hedionda Lagoon based solely upon the supply of and demand for non-portable and portable boating facilities at the proposed har- bor through 1985. In summary, the development potential for berths within the harbor is as follows: Cumulative. Net Year Demand for Berths 1970 500 1975 1,000 1980 1,600 1985 2,100 This section deals with the financial feasibility of the project and de- velops a program for implementing its financing and operation. B. REVENUE ANALYSIS Prior to forming decisions on the financing and operation of the harbor, certain preliminary investigations and analyses had to be made. Primary among these was a determination of the proposed harbor's revenue-producing capability. Based upon the market de- mand analysis, DMJM planners and engineers developed a prelimi- nary harbor plan. Estimates of the revenue from the facilities proposed in the harbor plan were then prepared. For physical reasons, the lagoon has been divided into three parts: Outer Lagoon, Middle Lagoon, and Inner Lagoon. These are each described in the following text. 1. Outer Lagoon The Outer Lagoon provides sufficient space for inclusion of approxi- mately 450 small craft berths. Development of additional water and -57- land facilities has been based on this guide figure. The reasoning for this is that small craft harbor requirements are normally deter- mined as a direct function of the number of berths contained therein. a. Berths The DMJM survey of current rates charged for berths in Southern California small craft harbors indicated that these range from $0. 60 to $2. 00 per foot per boat per month. The current rate being charged at Oceanside Harbor is 90 cents per foot per month or $10. 80 per foot per year. The charge for berthing rental is based on either the length of the boat or the length of the berth, whichever is longer. The esti- mates in this report are based on a charge of $1. 00 per foot permonth Such a charge is deemed reasonable for berth rentals in the proposed harbor. One of the most difficult problems in harbor planning is that of esti- mating a vacancy factor for small boat berths. The general lack of facilities in Southern California, prior to 196 3, caused high rates of occupancy at Newport and Los Angeles-Long Beach Harbors. Now that the supply of berths is increasing, a catching-up process is occurring. During this time occupancy rates in the less desirable harbors will stabilize at a lower rate than has been experienced in the past. To use a reasonably realistic approach to determination of a vacancy rate, this report assumes a constant 15 percent vacancy factor for the proposed harbor under full operation. Upon completion of any new harbor, a period of time is required during which boats move to their new storage areas. Historically, throughout California, this has required about two full boating seasons following completion of the new facilities. A two-year build-up period is assumed for this report. The first year should see a 50 percent berth occupancy, 75 percent in the second year, and full operation--or 85 percent occu- pancy--in the third year and thereafter. Due to its easy access to deep water, the development of the Outer Lagoon should provide optimum berthing provisions for the larger boats in the harbor. Since development of the Outer Lagoon is keyed to 1970 demand, estimates of the size of berths to be included therein are made as follows: 58- Berth Length''^ (in feet) Number of Berths Percent of Total Berths 22 225 50 28 112 25 34 108 24 44 5 1 Totals 450 100 ^Average berth length - 27 feet. Source: Market Analysis and DMJM Survey of Operating Experience at Oceanside Small Craft Harbor, June 1964. The survey pointed out that the 25-foot berths in the Oceanside Harbor are being rented at a significantly more rapid rate than the larger berths. The Outer Harbor will provide 11, 978 linear feet of available berth- ing space. Annual gross revenue estimates are shown below: Yearl - 11, 978 In.ft. x $1. 00 per ft./month x 50% occu- pancy X 12 months = $71, 8 70 Year 2 - 11,978 In.ft. x $1.00 per ft./month x 75% occu- pancy X 12 months = $107, 810 Year 3 and thereafter - 11, 978 In.ft x $1. 00 per ft./month X 85% occupancy x 12 months = $122, 170. b. Boat Repair Yard A boat repair service is a necessity at an active small craft harbor since all boats require periodic maintenance, repair and overhauling services. The average space requirement for boat repair yards and engine repair shops reported by nine national trade magazines is from 15 to 20 square feet of space per boat berthed in the harbor. •59- For a 450-berth harbor, this means approximately 6, 750 to 9, 000 square feet should be allocated in the Outer Lagoon for boat repair and engine repair facilities. Cradle space for a non-portable boat ashore will require about 750 square feet; shop, office and storage space about another 40 square feet per boat; roads and maneuvering space, another 500 square feet; and parking an additional 350 square feet (one stall per hauled- out boat). Total ground area for each boat in the yard equals approx- imately 1,640 square feet. Averaging one turnover per day times 300 days per year at an effi- ciency of 75 percent, each yard space could accommodate about 225 visits per year. Hauling out 450 boats twice a.year would require 900 visits to the boat yard per year or the need for about four spaces, with each space requiring 1,640 square feet. On this basis, the land requirement for boat repair and engine maintenance would be approx- imately 6,600 square feet. This estimate compares with the nationally accepted rule of thumb. The conclusion is that approximately 7, 000 square feet or 0. 16 acres should be reserved in the Outer Lagoon for boat repair and engine maintenance facilities. Study of Southern California marinas indicated that boat repair facili- ties average a gross annual income of $300 per boat berthed in the harbor. Under this volume, the boat repair facility proposed for the Outer Lagoon will gross $135, 000 per year under full operation. c. Boat Sales Adequate space must be allocated for new and used boat sales in the Outer Lagoon. It is estimated that approximately 5, 500 square feet are required for this proposed facility. Experience at other Southern California marinas and the national average of new boat purchases indicate that 14 percent of the boat owners berthed in the Outer Lagoon will purchase new boats annually. The estimated average cost per new boat will be approximately $8,000. The estimated gross income from new boat sales will amount to $504,000 per year. Used boat sales are based upon an 11 percent turnover of those boats berthed in the harbor at an average cost of $7,000 per boat. The es- timated gross income from used boat sales will amount to approxi- mately $350,000 per year. • 60- d. Sportfishing and Charter Boat Service Sportfishing has attained great popularity in Southern California. Sportfishing boats are party boats made up of two general classifica- tions: day boats and charter boats. Party boats are licensed as commercial fishing boats but actually are recreational craft which provide many days of sportfishing for a growing number of patrons. Day boats work on a "first come - first served" basis on a regular schedule, while charter boats are "for hire." The latter are cur- rently in limited use in the Northern San Diego County area, while the former are quite popular. There are currently 586 party boats in California. Most of these range from 25 to 65 feet in length. In 1947, there was an average of 655 anglers per year per party boat in the State. In 1961 this average had increased to 1, 090. The Oceanside Harbor now serves as the base for day and charter boats in Northern San Diego County. Prior to this harbor's construc- tion, these same boats operated from the Oceanside Pier. Oceanside Harbor has adequate facilities for at least eight sportfishing vessels. It is felt that these boats currently serve the demand generated for such use in the Northern San Diego County area. However, it is recommended that land be reserved in the Outer Lagoon for approxi- mately four sportfishing craft. The DMJM survey of Southern California marinas indicated that sport- fishing boats on the south coast average $29, 350 in gross income per year. Using this figure and the assumption that four boats will be based at the proposed harbor, it is estimated that gross income fr sportfishing will amount to approximately $117, 400 per year. om e. Motel Overnight accommodations, whether called a hotel or motel, should be part of the proposed marina development. It is recommended that one motel be included in the Outer Lagoon development. The master plan allocates sufficient area for initial construction as well as for future expansion. Revenue estimates are based on initial construction of 50 units. Carlsbad experiences two seasons for motel use. The summer from June 16 to September 15, and the winter from September 16 to June 15. For this analysis, it is assumed that the facility will realize a -61- 90 percent occupancy rate in the summer and a 65 percent occupancy rate in the winter. Summer prices will average $16 per room and winter prices will average $10 per room. Based on the preceding assumptions, average annual income under full operation is estimated at $155, 000. f. Restaurant Restaurants in a separate marina complex encounter significant plan- ning problems. No restaurant can operate solely on the basis of a weekend peak. In addition, no restaurant can compound the vagaries of resort trade with the short hours of weekend business and still provide good food and service on a year-round basis unless it has a substantial volume of built-in trade from either permanent or semi- permanent population within the marina or from outside. If trade from outside is relied upon, then trade from within cannot be prop- erly accommodated. What results is that if marina restaurants are designed to accommodate summer peaks, there is significant chance of failure due to a lack of off-^season business. Conversely, if res- taurants are designed for and cater exclusively to outside trade, they will be seriously overcrowded during the peaks of the boating season. The solution in planning a restaurant and/or restaurants for the pro- posed harbor is to plan for something under peak seasonal demand. In effect, this frequently provides inadequate capacity but does allow for quality food and service which is extremely important to income production from the facility. The following estimates have been de- veloped for the Outer Lagoon area of the harbor. Normal use patterns in Southern California harbors indicate that about one-third of the water-stored boats kept in a harbor will be used during any one day. An average of two people visiting each boat would indicate that an average of approximately 300 people would visit the harbor per day to use the boats berthed therein. It is assumed that 15 percent of them will desire to eat out. This amounts to 45 diners per day. An average of 110 portable boats per day will use the harbor. It is assumed that the portable boating party will average 1. 5 persons per boat. This means that, under full development, 165 people per day will be drawn to the harbor to use portable boats. Itis estimated that 25 percent of them will desire to eat out, resulting in approxi- mately 40 diners per day. • 62- Sales at Southern California marinas are split 30:70 between boat owners and others. Applying this ratio to daily harbor visitors, it was determined that approximately 1, 100 passive recreationists will be drawn to the harbor on an average daily basis. Assuming that 5 percent of them desire to eat out, 55 diners will be in this category. In summary, a daily average of approximately 1, 600 people will visit the proposed Outer Lagoon harbor under full development, and 140 of them, or 8. 7 percent, will dine at the harbor. At a turnover of 2 per meal, approximately 70 diners must be seated at one time. At 30 square feet per person, the total space needs for a restaurant in the Outer Lagoon area would be 2, 100 square feet. From this analysis, it is recommended that a 100-seat, 3,000 square-foot restaurant be included in the Outer Lagoon development. Revenue estimates are based on a 100-seat restaurant serving three meals per day, 300 days per year. Turnover rates should average 0. 5 for b reakfast, 1 for lunch and 2 for dinner. Expenditure should average $1.00 for breakfast, $1.25 for lunch and $1. 75 for dinner. The estimated gross income from food sales by the restaurant amounts to $157, 500 per year under full operation. It is estimated that gross income from liquor served in the restaurant will amount to $40, 250 per year. Therefore, total gross revenue estimated from the restaurant will amount to approximately $197, 750 per year. The Urban Land Institute reports that average annual gross sales per square foot in restaurants varies from $40 to $65 per year. The es- timate made herein is approximately $50 per square foot and is con- sidered reasonable for this analysis. g. Marina Commercial The remaining commercial space required for the 450-berth Outer Lagoon is estimated at approximately 11, 700 square feet. This esti- mate is based on an average of 26 square feet of retail space per berth found in Southern California small craft harbors. The average harbor generates $45 to $60 annually in gross receipts per square foot of retail space. Newport Beach averages $70 per square foot. A $45 figure is used in this analysis as a representa- tive figure. 63- Under the foregoing, it is estimated that gross income from marina commercial facilities in the Outer Lagoon will approximate $585,000 per year under full operation. h. Auto Fuel Sales An automobile service station is planned in the Outer Lagoon along the Harbor Loop highway. The service station will serve both harbor patrons and local traffic. Trailer-borne boats using launching facili- ties at the harbor will also provide a limited amount of additional business for the station. It is estimated that volume of sales at the station will average approx- imately 20, 000 gallons per month for a total of 240, 000 gallons per year. Based on current prices for gasoline in Southern California, the gross income would amount to approximately $76, 800. This fig- ure should be increased by 10 percent to account for lubrication, oil sales, repairs and sales of automobile accessories. Therefore, gross income from the service station proposed in the Outer Lagoon is estimated at $84, 500. i. Marine Fuel Sales From DMJM studies of California marinas, it was determined that there is no significant competition between marine fuel stations and automobile service stations. Oil companies encourage marine fuel station operators to charge a gallon price established (posted) by the oil company. Marine fuel prices are generally well above the price per gallon charged at service stations. For this reason and because it is often more convenient to fuel trailer-borne boats at automobile service stations than at a fuel dock, it may be assumed that the ma- jority of trailer-borne boats using the Outer Lagoon will be fueled at the service station. Boaters using berths and dry storage facilities within harbors prefer to fuel their boats in the familiar waters of their home port. A study by the State of California in 196l found that average gasoline con- sumption by boats in California was 302 gallons per year for inboards and 124 gallons per year for outboards. DMJM studies indicate that 90 percent of the boats berthed in the 22- foot berths proposed for the harbor will be outboards and that 90 per- cent of all other berthed boats will be equipped with inboard engines. • 64- One-quarter to one-third of the boats berthed in the harbor will be sailboats. Since these will be ocean-going vessels, it is assumed that all will be equipped with some form of auxiliary power. The estimated annual fuel consumption for the fueling facility proposed in the Outer Lagoon is presented below: Berthed Boats 191 inboards x 302 gallons per year = 57, 700 gallons per year 191 outboards x 125 gallons per year = 23, 900 gallons per year Berthed Boats-i^ 81, 600 gallons per year Dry Stored Boats 40 outboards x 125 gallons per year = 5,000 gallons per year All Boats 86, 600 gallons per year _1/ Assumes an allowance for vacancy The build-up period to reach full gasoline consumption shown above will be in accordance with estimated annual occupancy of berths and dry storage spaces. Based on a charge of 40 cents per gallon, gross income of $34, 600 is estimated from fuel sales at the marine fueling facility. This estimate is increased by 10 percent to account for sales of oil and minor repairs and accessory sales. Total estimated gross income from the marine fueling facility under full operation amounts to $38, 100 per year. j . Dry Storage and Hoist The boat repair and engine maintenance facility should be planned to include limited dry storage and launching facilities for the Outer Lagoon. By necessity, the boat repair yard must have a mechanical device which will provide boat ingress and egress to the water. A steel frame vertical lift boat hoist powered by an electric motor is appropriate for use in conjunction with the boat repair yard. Hoists -65- are generally favored over railways for boats ranging from 25 to 60 feet in length. The capacity of the hoist will depend on the type selec- ted; however, the hoist should be able to launch about 14 to 20 boats per hour and lift between 20,000 and 30,000 pounds. Dry storage space should be provided for 50 small craft in a fenced area adjacent to the boat yard. Revenue is estimated on the basis of $10 per boat (boats average 15 feet in length) per month, including unlimited privileges for use of the hoist. An 80 percent average occupancy is estimated. Estimated gross income from dry storage should amount to $4, 800 per year. Public launching from the hoist should be allowed to the extent feasi- ble regarding parking and maneuverability without causing excessive congestion. k. Boat Rentals Boat rentals should be provided in the Outer Lagoon. These can easily be accommodated via the commercial facilities or the boat repair yard. Revenue from this enterprise is considered to be in- cluded in previous estimates. 1. Lockers It is assumed that 50 percent of the berth renters would desire lock- ers for supply and equipment storage at the harbor. These could be included in the public restroom buildings or in conjunction with the administrative building. A rental charge of $2. 00 per month and 85 percent occupancy is used to estimate revenue from lockers under full operation. Estimated gross revenue from lockers will be about $4, 600 per year. m. Miscellaneous Concessions Sundries, such as cigarettes, candy and soft drink vending machines, ice machines and telephone booths will be located throughout the har- bor. Two such units will be adequate for the Outer Lagoon. Each unit should have average gross receipts of approximately $1,000 per year ($2, 000 for the Outer Lagoon). Based upon information compiled in the DMJM survey, it is estimated that each berth will generate approximately $40 per year from insur- ance. It is assumed that a broker will be located in the harbor or • 66- have an exclusive franchise with the harbor management. Total gross income per year from premiums on marine insurance is estimated at $15, 300 per year under full operation. Each slip will generate at least $50 per year in revenue for service afloat. This service will be part of the boat repair operation. Esti- mated gross revenue from this service will amount to about $19, 100 per year under full operation. 2. Middle Lagoon The Middle Lagoon provides sufficient space for the inclusion of ap- proximately 360 berths. These berths will average 25 feet in length. The intent in developing the three lagoons in Agua Hedionda Lagoon is to provide for larger boats as close to the harbor entrance as pos- sible. This can only be achieved consistent with forecasts of demand by berth length determined in the market analysis. The development of 360 more berths in the Middle Lagoon will pro- vide a total of 810 berths in the Outer and Middle Lagoons. The mar- ket analysis indicated that this magnitude of demand for berths will be reached between 1970 and 1975. To assume the most realistic approach to development, the Middle Lagoon should be completed and ready for occupancy by the end of 1975. a. Berths An estimate of the size of berths to be included in the Middle Lagoon follows: Berth Length (in feet) Number of Berths Percent of Total Berths 22 234 65 28 65 18 34 61 17 Total 360 100 • 67- Estimated annual gross revenue under full operation is estimated below: 9, 042 In. ft. X $1. 00 per ft./month X 85% occupancy x 12 months = $92, 230 b. Launching Ramps It is recommended that a launching ramp with three launching lanes each 20 feet wide be constructed in the Middle Lagoon. Adequate parking for 175 automobiles with trailers should be provided in the plan. Such a facility will have a capacity of six boats per hour per lane or a total launching capacity for the facility of 18 boats per hour. The revenue estimate for the facility is based on estimated volume of use for specified categories of days per year. The charge for launching (in and out) is estimated at $1. 50. The revenue estimate for the facility proposed in the Middle Lagoon is shown below: 1 0 days -80% capacity (140) in and out at $ 1. 50 = $2,100 47 days -70% capacity (122) in and out at $1. 50 = 8,600 31 days -50% capacity (87) in and out at $1. 50 = 4,050 125 days -20% capacity (35) in and out at $1. 50 = 6,560 152 days -5% capacity (9) in and out at $ 1. 50 = 2, 050 Total - Gross Annual Income $23, 360 The above estimate is considered realistic in view of the experience found at other Southern California harbors surveyed by DMJM. Ap- proximately 15, 600 ramp launchings per year under full operation may be anticipated over the launching ramps proposed for the Middle Lagoon. c. Marina Commercial On the basis explained above, the addition of 360 berths in the Middle Lagoon would create a demand for approximately 9, 000 square feet of retail commercial space. Such space should include convenience shops to serve the boater needs. In addition, 360 berths will require a coffee shop in this portion of the harbor. • 68. Estimated gross annual revenue from the retail operations planned for the Middle Lagoon should amount to approximately $405, 000 under full operation. d. Lockers Estimated annual gross revenue from lockers in the Middle Lagoon will be about $3, 700. These lockers can be constructed as part of the public restroom facilities or the marina commercial facilities. The method of making this revenue estimate is the same as used for lockers in the Outer Lagoon. e. Supplemental Contribution to Outer Lagoon Facilities - Marine Fuel Sales The development of added facilities in the Middle Lagoon will con- tribute to the volume of business realized by the marine-fueling facility in the Outer Lagoon. The addition of 360 berths in the Mid- dle Lagoon will generate marine fule sales of approximately 58, 800 gallons per year under full occupancy. This amounts to an additional 4, 900 gallons of marine fuel sales per month. The sales of fuel, oil and accessories required by Middle Lagoon boats amount to approxi- mately $25, 900 per year. f. Miscellaneous Concessions Miscellaneous concessions will generate approximately $33,400 in annual gross revenues to the harbor. This estimate was derived on the same basis as used in estimating income from miscellaneous concessions in the Outer Lagoon. 3. Inner Lagoon The Inner Lagoon has been planned to accommodate 815 berths in two separate basins. If the Inner Lagoon was the last portion of the harbor to be developed, the demand schedule indicated in the market analysis calls for this development between 1980 and 1985. a. Berths The number and size of berths proposed for the Inner Lagoon, based on market demand, is indicated below: • 69- Berth Length* (in feet) Number of Berths Percent of Total Berths 22 530 65 28 204 25 34 81 10 Total 815 100 Average berth size - 24 feet. Estimated gross annual revenue from these berths is shown below: 20, 126 In. ft. X $1. 00 per ft./month X 85% occupancy x 12 months = $205, 300 b. Marine Fueling Facility The construction of 815 berths in the Inner Lagoon will require an additional marine fueling facility to service these boats. It is esti- mated that the fueling facility will have annual sales of approximately 162,400 gallons per year or 13, 500 gallons per month. Gross annual revenue from the facility is estimated at approximately $71, 500. c. Marina Commercial The master plan for the Inner Lagoon calls for development of 37,000 square feet of retail facilities. This space allows for buildings of approximately 10, 600 square feet. This allocation is somewhat less in relationship to the number of slips proposed than the amount rec- ommended in the westerly lagoons. The reason for this reduction is to curtail the amount of land acquisition as much as possible. It is assumed that additional commercial facilities can be developed on private land surrounding the marina as the demand for such facilities requires. Estimated gross annual revenue from retail facilities in the Inner Lagoon amounts to approximately $477, 000. •70- d. Miscellaneous Concessions Miscellaneous concessions will generate approximately $65, 300 in annual gross revenues to the harbor. This estimate was derived on the same basis as used in estimating income from miscellaneous concessions in the Outer Lagoon. e. Lockers It is assumed that 50 percent of the berth renters would desire lock- ers for supply and equipment storage at the harbor. These could be included in the public restroom buildings or in conjunction with the marina commercial structures. A rental charge of $2.00 per rnonth and 85% occupancy is used to estimate revenue from lockers under full operation. Estimated gross revenue from lockers will be about $8, 300 per year. 4. Revenue Summary The preceding estimates have been presented in terms of gross revenue from the harbor enterprise with no reference to the con-, struction, operation, maintenance and replacement of the revenue- producing facilities. The following suggests a recommended policy for operation of the harbor facilities. Most publicly-owned small craft harbors in California are operated partially by a public agency and partially by private enterprise. The degree of operation by public agencies seems to be in proportion to the projects size. The larger projects tend to have more of the com- ponents therein installed, operated and maintained by private enter- prise. Public agencies prefer to construct and operate berthing, mooring and launching facilities while private enterprise normally receives ground leases and constructs, operates and maintains harbor ancillary facilities, i.e., restaurants, marine retail shops, motels, boat repair and sales, etc. The proposed Carlsbad Harbor should be operated partially by a public agency and partially by private enterprise as explained above. It is recommended that the public agency construct, operate and maintain the berths and launching ramp and operate and maintain the marine fueling facilities. The remaining facilities, with the exception of lockers which will be leased after public construction, should be con- structed, operated and maintained by private concessionaires through .71. long-term leases with the public agency. These leases should return a guaranteed minimum annual rent against a percentage of gross receipts from the lessee's operations. Table XIV summarizes the estimated gross revenues to the public agency operating the harbor for the Outer, Middle and Inner Lagoons. Where the facility is to be operated by a private concessionaire, the estimated percentage payment of gross revenues tb the public agency is estimated. The summary of estimated annual revenues under full operation to the public agency from the three lagoons is shown below: Estimated Lagoon Annual Revenue to District Outer $199,870 Middle 139,890 Inner 238, 500 Total $578,260 C. ESTIMATED EXPENSES OF HARBOR OPERATION Direct operation of the proposed Agua Hedionda small craft harbor by the administering public agency should be limited. The formation of a small craft harbor district as the administering agency for the Carlsbad Harbor is discussed later in the report. However, the title "District" is used henceforth to designate the administering harbor agency. The District should contract for fire protection, police pro- tection and maintenance of the harbor service roads from the City of Carlsbad. The District should operate certain harbor facilities (berths, launching ramps and marine fueling facilities), administer the harbor leasing program, patrol the water area within the harbor and perform other general harbor administrative functions. If a successful program is to be enacted by the District, the first step in reaching this goal should be to retain an experienced and well- qualified harbor administrator to formulate and direct the harbor development program. Operating expenses which are to be charged against harbor revenues are estimated liberally. Experience has shown that a usual problem found in most harbor planning is that of overestimating harbor reve- nues and underestimating harbor operating expenses. • 72- Table XIV Revenue Summary Proposed Carlsbad Small Craft Harbor Under Full Operation OUTER LAGOON Percentage Total of Gross Gross Revenue Facilities Gross Revenue to District to District District Operated Berths $ 122, 170 --$122, 170 Launching Ramps ------ Marine Fueling 38, 100 1/ 2, 100 Sub-Total 160,270 --124,270 Concessionaire Operated Boat Repair Yard 135,000 5 6, 800 Boat Sales 854,000 1 8, 500 Sport Fishing 117,400 5 5, 900 Motel 155,000 6 9, 300 Restaurant 197,750 3 5, 900 Maring Commercial 585,000 5 29, 300 Auto Fuel 84,500 5-1/2 4, 600 Dry storage and Hoist 4, 800 25 1, 200 Lockers — 4, 600 27 1, 200 Miscellaneous 36,400 8 2, 900 Sub-Total 2, 174,450 75, 600 Totals $2, 334,720 $199, 870 MIDDLE LAGOON Percentage Total of Gross Gross Revenue Facilities Gross Revenue to District to District District Operated Berths $ 92,230 $ 92,230 Launching Ramps 23,360 --23, 360 Marine Fueling 25, 900 1/ 1, 400 Sub-Total 141,490 116, 990 Concessionaire Operated Maring Commercial 405, 000 5 20, 200 Lockers 3, 700 27 1, 000 Miscellaneous 33,400 5 1, 700 Sub-Total 442,100 22,900 Totals $ 583,590 $139,890 INNER LAGOON Percentage Total of Gross Gross Revenue Facilities Gross Revenue to District to District District Operated Berths $ 205,300 --$205,300 Marine Fueling 71,500 1/ 3, 900 Sub-Total 276, 800 209,200 Concessionaire Operated Maring Commercial 477,000 5 23, 800 Lockers .2/ 8, 300 27 2, 200 Miscellaneous 65, 300 5 3, 300 Sub-Total 550,600 29, 300 Totals $ 827,400 ^ $238, 500 GRAND TOTALS $3, 745, 710 $578,260 Source: DMJM Economics \_i Assumes that an oil company will construct the facility and lease it back to the public agency for operation and maintenance. 2^1 Assumes construction by public agency and operation and maintenance by a concessionaire. -73. 1. Operating Expenses Efficient harbor operation depends largely upon management and its ability to provide the level of services necessary to realize the reve- nues forecast for the project. For preparing these estimates, it is assumed that the District will operate the berths, launching ramps and marine fueling facilities which are to be eventually located within the three lagoons. All other facilities will be constructed, operated and maintained by private concessionaires on long-term ground leases from the District." This may be accomplished collectively under a master lease program or individually within each lagoon. In any event, the District would administer the leasing program. Following are estimates of operating expenses which would have to be absorbed by the District for each of the three lagoons within the proposed harbor. All of the estimates are based upon current price levels. a. Outer Lagoon Personnel (a) Harbor Manager $12, 000 (b) Assistant Harbor Manager 8, 000 (c) Harbor Manager's Secretary 5, 000 (d) Water Patrol (2) 12, 000 (e) Landscaping 5, 000 (f) Berth Attendants (2) 10, 000 (g) Maintenance and Parking Attendant (1) 5, 000 Sub-total $57,000 1) Exceptions regarding the various fueling facility and lockers are noted above. -74- Sub-total (Continued) $57,000 Plus 10 percent for sick leave, annual leave, overtime, work- men's compensation insurance, etc. 5, 700 Total $62, 700 (2) Utilities: water, electricity, telephone, garbage, etc., at $18 per berth per year. 8, 100 (3) Insurance: fire and extended coverage, 90 percent; bodily injury liability, $100, 000/ $300, 000; property damage liability, $100, 000/$300, 000. 3,500 (4) Promotion and publicity. 2, 000 (5) General operations: (com- munications, auto expense, memberships, office sup- plies, travel, etc.). 10,000 (6) Miscellaneous. 5,000 Total Operating Expenses, $91, 300 Outer Lagoon It should be noted that there will be an initial expenditure required for the purchase of office equipment, patrol boats, and other miscel- laneous items upon formation of the District. This expense is esti- mated at 50 percent of total operating expenses for the first year of the project. Therefore, this extra charge is an addition to operating expenses for the first year of harbor operation. •75- Middle Lagoon (1) Additional Personnel (a) Clerk-bookkeeper $ 5, 000 (b) Water patrol (2) 12,000 (c) Landscaping 2, 500 (d) Berth and launching attendant 5, 000 (e) Maintenance and park- ing attendant 5, 000 Sub-total $29, 500 Plus 10 percent for fringe benefits 2, 950 Total (Personnel) $32,450 (2) Utilities 6,480 (3) Insurance 1,600 (4) Miscellaneous 5, 000 (5) General Operations 2, 000 Total Additional Operating $47, 530 Expenses for Middle Lagoon Inner Lagoon (1) Additional Personnel (a) Water patrol (2) $12,000 (b) Landscaping 5, 000 (c) Berth attendants 10,000 -76. (d) Maintenance and park- ing attendants 10,000 Sub-total $37,000 Plus 10 percent for fringe benefits 3, 700 Total (Personnel) $40,700 (2) Utilities 15,000 (3) Insurance 5,200 (4) Miscellaneous 10,000 (5) General operations 4,000 Total Additional Operating $74, 900 Expenses for Inner Lagoon d. Summary of Operating Expenses Following is a summary of estimated operating expenses for each of the three lagoons. Estimated Lagoon Annual Operating Expenses Outer $ 91, 300 Middle 47,530 Inner 74,900 Total $213,730 2. Maintenance and Replacement Expenses Maintenance and replacement expense estimates have been prepared for the recommended construction program. This program calls for construction of the Outer and Middle Lagoons by 1970. Construction of the Inner Lagoon is planned for completion between 1980 and 1985 in accordance with increases in demand for berths and mooring spaces as estimated in the market analysis. This program is tenative, espec- ially with regard to construction of the Inner Lagoon. The program will also be subject to refinement when the Outer and Middle Lagoons are tested under actual operating conditions. Certain assumptions are employed for estimating maintenance and replacement costs. First, it is assumed that the project will receive Federal assistance under the U.S. Army Corps of Engineers, River and Harbor Program. Under this program. Federal participation in recreational small craft harbors is limited to 50 percent of the con- struction costs of general navigation facilities allocated to recreation. • 77- Such general navigation facilities would include: breakwaters, jetties, dredging, bulkheading, and navigational aids (generally financed by the U. S. Coast Guard). In the case of the Outer and Mid- dle Lagoons this amounts to approximately $4, 482, 000 including en- gineering, legal, administrative costs and contingencies. When the Corps of Engineers constructs the general navigation features of a harbor, they assume the maintenance and replacement expenses of such features on an annual basis. Second, the estimated maintenance and replacement expenses to be borne by the District are in equal annual deductions from project revenues. This process establishes funds which may earn interest income, set aside in anticipation of needing such funds at a future time. By using the preceding assumptions, the feasibility study estimates a District requirement for maintenance and replacement expenses of $63,600 per year for the Outer and Middle Lagoon construction. At such time as the Inner Lagoon is constructed, this annual expense will increase by approximately $42, 600 to $106, 200 per year. It is assumed that the Corps of Engineers will finance the mainte- nance and replacement costs for the breakwater and jetties ($1 00,200 per year) as well as the sand bypassing and maintenance dredging program ($75,000 per year), both at a total annual expense of $175, 200 per year. These expenses are explained in greater detail in Section III. D. NET INCOME AVAILABLE FOR DEBT SERVICE 1 . Basic Assumptions Table XV presents estimates of revenues and expenses for the pro- posed harbor under District operation. The table also presents esti- mates of net project revenue which will be available to service the debt which will be incurred to acquire land for and construct the project. The assumptions employed in developing these estimates are listed as follows: The District will limit itself solely to the operation, maintenance and replacement of those items serving the recreational boating public, i. e., certain general • 78- Table XV Annual District Revenue and Expense Estimates Proposed Carlsbad Small Craft Harbor Under Full Development Phases 1 and II (Outer, Middle and Inner Lagoons) (in dollars) EXPENSES Operating Maintenance and Replacement Total District Expenses Net Revenue Available for District Debt Retirement from Proposed Carlsbad Harbor ^''Revenue and expense estimates are for the proposed Harbor District nnl,r Tr, -^U^ u expenses received and incurred bv them were nnf inrr.H.H • ^' concessionaries lease facilities, the revenues and by them were not included. Concessionaire revenues are the amounts paid by the lessee to the District. -79- navigational features, small craft berths, launching ramps, and marine fueling facilities (construction by an oil company with a lease for operation, maintenance and replacement by the District). The District will administer ground leases to private and public concessionaires for construction and opera- tion, maintenance and replacement of facilities ancillary to the District operated facilities, i. e., restaurants, motel, marina commercial, boat repair, boat sales and miscellaneous concessions. Federal participation will be provided to the District by the U. S. Army Corps of Engineers under the River and Harbor program for construction, - maintenance and replacement of general navigation facilities. Construction of both the Outer and Middle Lagoons will occur simultaneously to allow operation of the facilities therein to occur by 1970. This will serve as the first increment of project construction and will be termed the Phase I program. Construction of the Inner Lagoon will be delayed to allow for its operation on or about 1980. This will be called the Phase II program. The Carlsbad Small Craft Harbor District will be formed under the Small Craft Harbor District Law, Division VIII, Sections 7000-7340 of the California Harbor and Naviga- tion Code. The District will establish an administrative unit under experienced harbor management and direction to super- vise and promote the overall development and operation of the harbor. The District will seek and receive financial assistance from the State of California, Department of Parks and Recreation, Division of Small Craft Harbors under the State Small Craft Harbor Law (more specifically. Sec- tions 5823 and 5823. 5 thereof). -80- 2. Financial Analysis a. First Phase Construction The pro forma financial analysis shows that the Phase I program will produce approximately $339, 760 per year in gross income to the District under full operation. Full operation should be attained by the fifth year of project operation. Annual expenses for District operation, maintenance and replacement will be approximately $202, 430 under full operation. Full OM & R charges will occur during the fifth operational year. However, $164, 400 will be charged during the first operational year to reflect start-up costs of the District. Certain equipment, supplies, etc. , must be provided to allow the District to initiate operation. Net income from the harbor to the District should amount to approxi- mately $137, 330 per year, starting with the fifth operational year. As with any business enterprise, the early years of harbor operation will be the most difficult in terms of the enterprise's financial feasibility. The harbor to be constructed by the Phase I construction program will produce average annual income, after payment of operation, maintenance and replacement expenses, sufficient to repay a 30- year State loan at 4 percent interest per annum of approximately $1, 800, 000. This approximate debt paying capacity served as a starting point for determining a program for financing the Phase I program which has an estimated construction cost of approximately $11, 380, 000, excluding land acquisition cost. b. Second Phase Construction Completion of the full proposed harbor would involve construction of the Inner Lagoon (Phase II). Such construction would require approx- imately $2, 040, 000, excluding land acquisition, in addition to the $11, 380, 000 Phase I construction program in the Outer and Middle Lagoons. The preceding costs are based on current price levels with no escalation shown. The staging program and market analysis suggest that construction of the Inner Lagoon should allow operation thereof by 1980, or the eleventh operational year as a target date. -81- By using the preceding assumptions. State loan capability was esti- mated. Table XV shows that the Inner Lagoon harbor would require a five-year period to reach full utilization and hence full revenue production and operating, maintenance and replacement expense re- quirements. Under full operation of the completed harbor, annual gross revenue would be approximately $578, 260 and annual expenses would be $319, 930. This would leave $258, 330 annually for debt repayment. If the District were to request and receive a State Small Craft Harbor loan based upon initial and potential repayment capacity of the planned harbor, this could amount to approximately $3, 000, 000. Such a loan would be based upon average annual repayment capacity from opera- tional year 1 through 30. As discussed previously, the loan would be for a 30-year term at a 4 percent interest rate per annum. c. Conclusions - State Loan The preceding analysis served as an early indication of the loan capability of the proposed harbor as a self-sustaining entity. Not surprisingly, it was found that the proposed harbor does not have the revenue-producing capability of a sufficient magnitude to repay the entire capital cost of its construction. This is the case with most of the ocean-access harbors on the California coast. The basic reason for this lack of capacity as a self-sustaining enterprise is the fact that approximately 63 percent of the total construction cost of the harbor consists of the break- water and jetties which form the ocean access to the harbor. E. FORMATION OF A SMALL CRAFT HARBOR DISTRICT 1 . General It was deemed necessary to investigate the possibility of forming a district which would include the incorporated limits of the City of Carlsbad and a portion of the harbor's primary trade area. The reasoning for this approach was based upon two factors. First, the City has insufficient debt capacity, based upon present and projected assessed valuations, to finance as large a project as the proposed harbor. Second, benefits from use of the harbor flow, not only to the residents of the City, but to the residents of the primary trade area as well. •82- Two questions concerning formation of a district had to be answered. What type of a district should be formed, and what area should the district boundaries include? The following reports the findings of this phase of the study. 2. District Formation Five types of port and harbor districts are provided for in the Harbor and Navigation Code of the State of California. The five types of dis- tricts are: 1) harbor improvement districts; 2) harbor districts; 3) port districts; 4) river port districts; and 5) small craft harbor districts. It was determined that the most appropriate type of district was a "small craft harbor" district under Division VIII, Part 7, Sections 7000- 7340 of the Harbor and Navigation Code. This is the same type of district which was created by the City of Oceanside to provide for the Oceanside Small Craft Harbor. The Small Craft Harbor District Law is unique in several respects. A district may borrow money, incur indebtedness and issue bonds or other evidences of indebtedness. In the case of revenue bonds, when the revenues derived from a harbor are insufficient to pay the debt incurred for its construction, the district may tax its residents to a levy not to exceed $0. 75 on each $100 of assessed valuation in any one year (Section 7243). Section 7262 (c) of the Small Craft Harbor Law also provides that when funds are insufficient to pay all maintenance and operating ex- penses out of the gross harbor revenues after providing for debt service requirements, the levy of a limited tax of not more than $0. 75 per $100 of assessed valuation may be made to make up the deficiency in any one year. A district formed under this law has the power of eminent domain and generally the same rights as a municipal corporation. The formation of a small craft harbor district appears reasonable to provide the proper administrative vehicle for development of the proposed Carlsbad Harbor. •83- 3. District Boundaries A study was conducted to determine the logical boundaries for the proposed Carlsbad Small Craft Harbor District. The boundaries have been based upon two key factors: area benefited by the creation of the harbor and financial requirements to construct the proposed harbor. Initially, five Northern San Diego County school districts were evalu- ated in terms of their boundaries, population and assessed valuation. Projections of assessed valuations were made for each district to the year 1999.i.^ Four of the districts were union high school districts and one was a unified district. The districts included in the evaluation were: - Escondido Union High School - Fallbrook Union High School - Oceanside-Carlsbad Union High School - San Diequito Union High School - Vista Unified In the fiscal year 1964-1965 the total assessed valuation for the area within these districts amounted to $316, 475, 000. By 1999, the as- sessed valuation for the area is projected to be $1, 130, 000, 000, or almost a 260 percent increase over the next 35 years, using present price levels. As a result of the analysis, it was determined that the boundaries of the Oceanside-Carlsbad Union High School District, excluding the area in the corporate limits of the City of Oceanside and the area owned by the San Diego Gas and Electric Company, would be the most appropriate and feasible area to be included in the proposed Carlsbad Small Craft Harbor District. —^This is operational year thirty if operational year one is 1970. • 84- As previously discussed, Section 7243 of the Small Craft Harbor District Law gives the proposed district the power to levy a tax for payment of principal and interest on indebtedness of up to $0. 75 per $100 assessed valuation, in the event gross revenues from the har- bor are insufficient for such purposes. In order to estimate the amount which this tax levy would produce, a projection of the assessed valuation of the proposed district was made. This projection considered historical growth in assessed valuation in the district, population projections and projections of assessed valuation made by the San Diego County Department of Ed- ucation for the Oceanside-Carlsbad Union High School District. The resulting projection of assessed valuation to fiscal year 1999 is shown in Table XV. A significant condition of project feasibility involves the right of the public agency constructing the harbor to use land and water area owned by the San Diego Gas and Electric Company (SDG&E). One of the prerequisites for the use of the water area was that in the case of harbor district formation, SDG&E would not be taxed on their current holdings (land and improvements) at Agua Hedionda Lagoon. In lieu of such a tax, the SDG & E would lease the water area to the Districton a long-term basis at $1 per year. This as- sumption was deemed acceptable by the City upon initiating this assignment and remains as a condition for feasibility of the project. Therefore, the projections of assessed valuation shown in Table XVI exclude estimates of the assessed valuation for the SDG&E property at Agua Hedionda Lagoon. F. FEDERAL PARTICIPATION 1 . The Corps of Engineers Program The large construction cost of the ocean entrance (breakwater and jetties - $8, 450,200) and the large annual expenses for maintenance and replacement of these facilities ($100, 200 per year) requires that the District investigate the possibility of receiving Federal assist- ance from the U.S. Army Corps of Engineers under the River and Harbor Act. The Corps of Engineers will participate in financing the general navi- gation features of a harbor when the project is proven to be economi- cally feasible under Federal criteria. To receive Federal assistance on any project, a request for such assistance must be activated by • 85- Table XVI (Sheet 1 of 2) Estimated Assessed Valuation and Tax Revenue Proposed Carlsbad Small Craft Harbor District (Fiscal Years I960 to 1999) Fiscal Year Assessed Valuation—'^ Maximum Tax Revenue for Debt Service?./ 1959-60 $10, 975, 000 $ 82,300 1960-61 17,732,000 133, 000 1961-62 18, 036, 000 135, 300 1962-63 18,080,000 135,600 1963-64 19, 864, 000 149,000 1964-65 19, 854, 000 148,900 1965-66 27,164,000 203,700 1966-67 30,106,000 225,800 1967-68 33, 048, 000 247,900 1968-69 35, 990, 000 269,900 1969-70 38,932,000 292,000 1970-71 41,874,000 314, 100 1971-72 44,816,000 336,100 1972-73 47, 758, 000 358,200 1973-74 50,700,000 380,300 1974-75 53, 642, 000 402,300 1975-76 56,584,000 424,400 1976-77 59, 526, 000 446,400 1977-78 62, 468, 000 468,500 1978-79 65,410,000 490,600 1979-80 68, 352, 000 512, 600 1980-81 71, 294, 000 534,700 •86- Table XVI (Sheet 2 of 2) Fiscal Year Assessed Valuation— Maximum Tax Revenue for Debt Service?/ 1981-82 $74,236,000 $556,800 1982-83 77, 178, 000 578,800 1983-84 80,120,000 600,900 1984-85 83, 062, 000 623,000 1985-86 86,004,000 645,000 1986-87 88,946,000 667,100 1987-88 91,888,000 689,200 1988-89 94, 830, 000 711,200 1989-90 97,772,000 733,300 1990-91 100,714,000 755,400 1991-92 103, 656, 000 777,400 1992-93 106,598,000 799,500 1993-94 109, 540, 000 821,200 1994-95 112, 482, 000 843, 600 1995-96 115, 424, 000 865,700 1996-97 118, 366,000 887, 700 1997-98 121,308,000 909,800 1998-99 124, 250, 000 931,900 Source: San Diego County Auditor and Controller, San Diego County Department of Education, DMJM Economics. —''FY i960 to 1966 are actual figures. The remaining years are estimates. 2/ ,K * — Based upon a tax levy of $0. 75 per $100 assessed valuation. .87- the citizens of the community or area where they feel that the improve- ment is needed and is to be beneficial. The local sponsors must draft a request for the improvement and submit it to one of their Federal representatives or senators. If a legislator is properly impressed with the merits of the requested project, he will submit it to his Public Works Committee and ask authorization for a detailed investigation of the project by the Corps of Engineers. If the Public Works Committee of the House or Senate, as the case may be, also is adequately impressed with the merits of the requested project, authorization for its investigation will be in- cluded in an appropriate omnibus or special bill, and funds for the investigation's expense similarly will be made available. Once a request and authorization to investigate a project is received by the Corps of Engineers, their local office will hold a public hear- ing on the matter. Such a hearing will be held in the local area and will be for the purpose of obtaining views on all aspects of the project. In addition, the local Corps office will make field studies and tentative cost estimates; advise local interests about required cooperation and cost participation; consider allied and multiple-purpose possibilities; and compute the project's benefit-cost ratio. The Corps report is then subjected to extensive review by public agen- cies and other interested parties. If all required approvals are given, the report eventually is printed as a public document and included in an authorization bill to be passed by the House, approved by the Senate and signed by the President. Once a project is authorized, local sponsors must provide assurances of cooperation and cost participation and vigorously press for the proj- ect's inclusion in an appropriation bill. Prior to inclusion in such a bill, the project must be reviewed by the Bureau of the Budget and be considered by the House Committee on Appropriations. An appropri- ation bill must pass both houses of Congress and either be approved by the President or passed over his veto. Once an appropriation for the project is received, the project will undergo detailed planning by the local Corps office. Next, bids are invited from private contractors based upon the project plans and specifications. Finally, the project is constructed. •88- The planning and review process generally employed by the Corps of Engineers takes a substantial period of time. This factor must be recognized and incorporated in the formulation of local plans for total harbor development as rriay be required. 2. Cost Sharing There is a basic cost sharing policy followed by the Corps of Engi- neers for small boat harbor projects. The Corps program may only finance general navigation features of a project, i. e. , entrance chan- nels (jetties and breakwaters) and adequate interior and access chan- nels leading to berthing and mooring areas. The project sponsor is expected to provide all lands, easements and rights-of-way and self- liquidating service facilities, i.e., adequate service frontage, "public landings" to provide fuel, lubricants and potable water, marina moor- ing facilities, access roads and parking. The amount of Federal financial participation in any project varies in accordance with the benefits of the project attributed to the specific project component being constructed. In the case of recreational small boat harbors. Federal participation in cost-sharing-is limited to 50 percent of the construction costs of general navigation features allocated to recreation. Land enhance- ment benefits (land fill from spoil disposal) is also limited to 50 per- cent of construction costs. A general summary analysis has been developed for the proposed Carlsbad Harborto determine a possible Federal-local cost sharing arrangement. This analysis assumes that the Corps of Engineers would find the project (tentatively programmed for initial operation in 1970) feasible for Federal participation up to 50 percent of the cost of certain general navigation features. The general navigation features considered within the proposed har- bor and the estimated costs thereof are listed on the following page. If the Federal Government will finance 50 percent of this cost ($4, 482, 000), the local construction cost of the Phase I construction program would be reduced from $11, 380, 000 to $6, 898, 000 or by approximately 39 percent. .89- Estimated Feature Construction Cost Breakwater and Jetties $6, 680, 000 Dredging ,285,000 Bulkheading, Riprap, and 121,000 Navigational Aids Sub-total $7,086,000 Engineering and Contingencies 1, 877, 800 Total $8,963,800 The problems of annual maintenance and replacement expenses for the breakwater and jetties and maintenance dredging for the harbor entrance are of extreme importance to the feasibility of the proposed harbor. If the Corps of Engineers participates in harbor construc- tion, they will also probably pay the beforementioned annual expenses which will amount to about $175, 200. G. BONDS The large cost of the proposed harbor requires Federal, State and local participation in order to finance land acquisition and construc- tion. The establishment of the Small Craft Harbor District allows the issuance of revenue bonds secured by both gross revenue from the harbor enterprise and revenue derived from a limited tax levy on district constituents. Revenue bonds may be issued pursuant to the Revenue Bond Law of 1941 (Government Code 54300 et. seq. ) and the Small Craft Harbor District Law (Division VIII, Part 7, Harbor and Navigation Code of the State of California). Once issued, these bonds become a special obligation of the District and form a lien upon gross revenues re- ceived by the District from the harbor. If harbor revenues are or are expected to be insufficient in any year to pay the principal or interest due, a limited tax of up to $0. 75 per $100 assessed valua- tion may be levied for this purpose (provided for in Section 7243 of the Small Craft Harbor Law). -90- H. PROPOSED HARBOR COST ESTIIvIATES 1. General Detailed data on harbor design factors and cost estimates were given in Section III of this report. This section merely apportions the cost estimates in order to determine the proper means for financing. 2. Revenue Producing Versus Non-Revenue Producing Harbor Facilities The State of California Small Craft Harbor Program, which is admin- istered by the Department of Parks and Recreation, Division of Small Craft Harbors, has recently undergone significant change. The amount available for loan to cities, counties and districts for harbor planning, acquisition, construction, development and improvement has been increased from $2 million to $4 million per year. In addi- tion, more liberal terms have been created for the repayment of such loans. Section 5823.5 of the California Public Resources Code was added by Statutes of 1961, Chapter 2101, and amended by Statutes of 1965, Chapter 1702. This section of the State Small Craft Harbor Law provides for certain factors which are of particular importance to the proposed Carlsbad Small Craft Harbor. These are listed below. - Allows the Division of Small Craft Harbors (hereinafter referred to as the DSCH) to contract for the acquisition, construction, development and improvement of any por- tion of coastal small craft harbors which normally are non-revenue producing, such as jetties, breakwaters, dredging, seawalls, piers and communication centers. - Provides that the State monies used to finance non-revenue producing components of a new harbor are to be repaid com- mencing when it has been determined by the DSCH that re- venues attributable to the harbor operation are sufficient for the District to assume such responsibilities. - The DSCH may loan monies for payment of operating and maintenance costs of coastal harbors. -91- Section 5829. 1 (g) also provides that when the DSCH determines that repayment of monies used to finance non-revenue-producing compo- nents of a coastal harbor should commence, the repayment period should not exceed 50 years. Since 1957, the DSCH has had the authority to make loans to appro- priate public agencies for planning, acquisition, construction, main- tenance or operation of small craft harbors and facilities in connection therewith and connecting waterways. The repayment period for such loans, which may be for revenue and non-revenue-producing compo- nents, is now a period not to exceed 30 years, except in the case of planning loans which have a 10-year repayment period. Tables XVII and XVIII show construction cost estimates for the Phase I and Phase II construction programs with a notation of revenue- producing and non-revenue-producing facilities indicated. Summary estimates of construction costs (under current price levels) are shown below: Construction Phase Estimated Cost of Revenue- Producing Facilities Estimated Cost of Non-Revenue- Producing Facilities Total ^ I Estimated — Construction Costs I II Total Percentages $ 750,000 680,000 $1, 430, 000 10 $10,630,000 1, 370, 000 $12,000,000 90 $11,380,000 2,050,000 $13, 430, 000 100 -92- Table XVII (Sheet 1 of 2) Estimated Construction Costs - Phase I Construction Program Revenue-Producing and Non-Revenue-Producing Components (Current price levels) Item Estimated Cost of Revenue- Producing Facilities Estimated Cost of Non-Revenue- Producing Facilities Total Estimated Construe - tion Costs Marine Improvements Outer breakwater Jetties Dredging Bulkheading Riprap slope protection Berthing facilities Navigational aids Launching ramps Sub-total 580,000 13,500 $3, 200, 000 $3, 200, 000 3,480,000 3, 480, 000 285,000 285, 000 12,000 12,000 90,000 90, 000 - -580,000 19,000 19,000 - -13, 500 $593,500 $7,086,000 $7,697,500 Land Improvements Earthwork Streets Parking Promenades and walks Landscaping Street lighting Area lighting Water distribution system Sanitary sewer system 75, 000 48,000 290,000 23,000 18,000 10,200 34,500 77,500 124,600 75,000 48, 000 290, 000 23, 000 18,000 10,200 34,500 77,500 124,600 •93- Table XVH (Sheet 2 of 2) Item Estimated Cost of Revenue- Producing Facilities Estimated Cost of Non-Revenue- Producing Facilities Total Estimated Construc- tion Costs Land Improvements (Continued) Underground power system Bridge, railroad undercros sing Bridge, railroad lagoon Bridge, State Street (50%) 31,500 95,000 210,000 84,500 31,500 95,000 210,000 84,500 Sub-total 1, 121,800 1,121,800 Building Improvements Maintenance building Dredging and mainte- nance equipment 17,500 175,000 17,500 175,000 Sub-total 192,500 192,500 Totals 593,500 8, 400, 300 8, 993, 800 Engineering, legal and administrative, 15% 89,025 1, 260, 045 1,349,070 Sub-total 682,525 9,660,345 10,342,870 Contingency, 10% 68,255 966,030 1, 034, 285 Totals $720,780 $10, 626, 375 $11,377, 155 ROUNDED TOTAL ESTIMATED CONSTRUCTION COSTS $11,380,000 •94- Table XVHI Estimated Construction Costs - Phase II Construction Program Revenue-Producing and Non-Revenue-Producing Components (Current price levels) Estimated Cost Estimated Cost Total of Revenue-of Non-Revenue-Estimated Producing Producing Construc- Item Facilities Facilities tion Costs Marine Improvements Dredging $ $ 500,000 $ 500,000 Riprap slope protection 84,000 84,000 Berths 521,000 521,000 Launching facilities 13, 500 --13,500 Sub-total 534,500 584,000 1,118, 500 Land Improvements Earthwork 75,000 75,000 Streets 60,000 60,000 Parking 147,000 147,000 Promenades and walks 11,000 11, 000 Landscaping 5,000 5, 000 Street lighting 24,000 24,000 Area lighting 11,000 11,000 Water distribution system 83,000 83, 000 Sanitary sewer system 17,000 17,000 Underground power system 63,000 63,000 Sub-total 496,000 496,000 Totals 534,500 1, 080, 000 1,614,500 Engineering, legal and administrative, 15% 80,175 162,000 242,175 Sub-total 614,675 1,242,000 1,856,675 Contingency, 10% 61,470 124,200 185,670 Totals $676, 145 $1, 366, 200 $2,042,345 ROUNDED TOTAL ESTIMATED CONSTRUCTION COSTS $2,040,000 -95- I. LAND AND WATER AREA ACQUISITION 1 • Project Boundary Delineation of the Project Boundary is important for a number of reasons. First, the boundary includes only that land and water area which is required for development of a public small craft harbor. The previous plan for the harbor (Patterson Report) called for the acquisition of 410 acres, a large portion of which was to be used for leasing to private developers for the construction of residential units. This plan does not include such development, but is limited to only those facilities which contribute to the use of the land and water area by the boating public. This factor, therefore, allows the pro- posed harbor to be considered as a public harbor project by Federal, State and local agencies rather than also as a housing development. Legal restrictions prevent State funds from being used for construc- tion which does not contribute directly to the essential public aspects of the harbor. The project boundary includes 253. 91 acres of land and water area. Currently, 70. 23 acres are in land and 183. 68 acres are in water. The harbor development plan shows 91. 75 acres in land and l62. 16 acres in water. Therefore, 21. 52 acres that are currently in water will be reclaimed and irnproved as part of the harbor. Table XIX shows land and water area allocations under pre-project and post- project conditions for the Outer, Middle and Inner Lagoons. 2. San Diego Gas and Electric Company Property San Diego Gas and Electric Company (SDG&E) currently owns 163.77 acres of land and water area or approximately 64 percent of the area within the Project Boundary. SDG&E has agreed to lease the water area in the. completed harbor project to the District on a long-term basis for $1 per year. However, SDG&E will require that the District acquire all land area owned by it under the project plan. This means that, in addition to the 11. 27 acres of land area available now, SDG & E will sell the 16. 60 acres of what is currently water area to the District after the District reclaims the water area to create land for use as prescribed by the harbor plan. In essence, the District will have to purchase 27. 87 acres of land from SDG&E at its fair market value less the development cost to the District for filling the land. This policy was developed from joint conferences during the course of the assignment between the City, SDG&E and DMJM. Therefore, it has become a requirement of the feasibility study. • 96- 3. Other Land and Water Areas In addition to SDG & E property, certain other private and public properties must be acquired, leased, or be subject to easements or rights-of-way by the District. Table XIX shows the remaining prop- erty included in the project boundary under pre-project and post- project conditions. "Other" land and water area refers to property owned by private interests. "Tidelands" refers to property owned by the State of California. "Railroad" and "Highway" property is self-explanatory. 4. Area and Cost Requirements A complete real estate appraisal was not a requirement of this assign- ment. However, general estimates of land and water area require- ments and acquisition costs thereof were prepared for use in estimating project feasibility. Such estimates were developed from market data information which was obtained from interviews with City, County and State officials, local realtors, SDG&E and review of local appraisal reports. a. Area Requirements The area acquisition requirements for the proposed harbor are shown in Table XX. A total of approximately 70 acres of land and water area must be acquired by the District in order to provide for the har- bor proposed in the plan. A breakdown of the area to be acquired is summarized following: Description of Area Acres Percentage of Total Area SDG & E Existing Land Area 11.27 16 SDG & E Water Area to be Reclaimed 16. 60 24 Other Private Land Area 37. 84 55 Other Private Water Area 3. 82 5 Totals 69. 53 100 •97- Table XIX Land Ownership Within Project Boundaries Proposed Carlsbad Small Craft Harbor (in acres) Outer Lagoon Middle Lagoon Inner Lagoon Within Total Harbor Boundarv Area Present Future Change Pre sent Future Change Present Future Change Present Future Change Land SDG&E 9. 98 15. 48 + 5. 50 -5. 57 + 5. 57 1.29 6. 82 + 5. 53 11. 27 27. 87 +16,60 Other 8.60 7. 13 - 1.47 1 40 3. 71 + 2. 31 27. 84 13.01 -14.83 37. 84 23. 85 -13,99 Tidelands 18. 40 37. 31 + 18. 91 ------------18.40 37. 31 +18.91 Railroad 1. 36 1. 36 — 1 36 1. 36 --------2. 72 2. 72 -- Sub-total 38. 34 61. 28 •^22. 94 2 76 10. 64 + 7. 88 29. 13 19. 83 - 9 . 30 70.23 91. 75 +21.52 Water SDG&E 40. 87 35. 37 - 5. 50 18. 61 18.61 -5. 57 93.02 87. 49 - 5. 53 152.50 135. 90 -16. 60 Other -1. 47 + 1.47 2. 31 --2. 31 1. 51 16. 34 +14.83 3.82 17. 81 + 13, 99 Tidelands 25, 26 6. 35 -18.91 -------— --25.26 6. 35 -18, 91 Railroad 0. 38 0. 38 --0. 40 0. 40 --------0. 78 0. 78 -- Highway ----0. 84 0. 84 --0. 48 0. 48 --1. 32 1. 32 -- Sub-total 66. 51 43. 57 -22. 94 22. 16 14.28 -7. 88 95.01 104. 31 + 9. 30 183.68 162. 16 -21,52 Total 104. 85 104. 85 --24. 92 24. 92 --124. 14 124.14 --253.91 253, 91 -- .-98- Table XX Area Required for Acquisition by Harbor District Proposed Carlsbad Small Craft Harbor (in acres) Property Ownership Outer Lagoon Middle Lagoon Inner Lagoon Total Harbor Property Ownership Land Water Total Land Water Total Land Water Total Land Water Total SDG&E Present 9. 98 -9. 98 ---1. 29 -1. 29 11. 27 -11. 27 Future — 5. 50 -5. 50 5. 57 -5. 57 5. 53 -5. 53 16. 60 -16. 60 other 8. 60 -8.60 1.40 2. 31 3. 71 27. 84 1. 51 29. 35 37. 84 3. 82 41. 66 Totals 24. 08 -24. 08 6. 97 2. 31 9. 28 34.66 1. 51 36. 17 65. 71 3. 82 69. 53 Percentage of Total 35 13 52 100 —^Currently -water area owned by SDG&E to be filled by District. -99- In addition to the area to be acquired, certain less than fee title property rights such as permits, easements, rights-of-way, etc. , necessary for the harbor, must be obtained from the owners of the remaining properties. These include the A. T. &S. F. railroad and various agencies of the State of California, i. e. , Division of Highways, Division of State Lands and Division of Beaches and Parks. b. Acquisition Costs Estimates of land and water acquisition costs were prepared for the Outer, Middle and Inner Lagoons. The factors mentioned above were considered in establishing these estimates. Estimated costs for land and water areas are summarized following: Area Estimated Cost of Acquisition Outer Lagoon Middle Lagoon Inner Lagoon Total $ 1,203,300 244,700 1,434,300 Outer Lagoon Middle Lagoon Inner Lagoon Total $ 2,882,300 J, RECOMMENDED DEVELOPMENT PROGRAM This section has examined the basic considerations for determining the feasibility of a proposed harbor development program for Agua Hedionda Lagoon. Complete development of the Carlsbad Harbor, as proposed in Section I of this report, would require approximately $16, 302, 000 including acquisition and construction costs estimated at current price levels. A summary of these costs, by category, is shown on the following page. Several means of financing the proposed harbor were examined. These include: Gross revenues from the proposed harbor enterprise. Loans from the State Small Craft Harbor Program. - Assistance from the U.S. Army Corps of Engineers. 100- Construction Phase Estimated Acquisition Costs Estimated Construction Costs Total Costs Percentage of Total Costs I $1, 448, 000 11, 380, 000 12, 828, 000 79 II 1,434,000 2,040,000 3,474,000 21 Totals Rounded $2,882,000 $13,420,000 $16,302,000 100 Revenues from District taxing power. Proceeds of revenue bonds issued by the District. Examination and evaluation of the preceding considerations has en- abled the preparation of a suggested program for implementing de- velopment of the proposed Carlsbad Harbor at Agua Hedionda Lagoon. This program, and its feasibility, are explained following. 1. Financing the Project The project pro forma financial analysis (Table XXI) illustrates a 30-year schedule. Estimates of population, assessed valuations, revenues and expenses are based upon target years 1970 to 1999. In other words, the project is assumed to be ready for operation commencing in 1970, with the 30th year of operation falling on 1999. The use of these years is purely for exploratory purposes and may be changed in accordance with actual timing for the project. Revenue and expenses have been projected (Table XV ) for the Phase I and Phase II programs. This was done to determine the timing for and advisability of developing the Inner Lagoon as part of the project. Development of the Phase II program, by the District, was found to be infeasible during the first 30 years of the project's life. -101. Table XXI Pro Forma Revenue-Cost Analysis Phase I - Proposed Carlsbad Small Craft Harbor (in dollars) REVENUES Harbor Operations From Contingency Fund Tax Revenue Total EXPENSES Operation, Maintenance and Replacement State Loan Repayment a. Revenue Producing ($2,250,000) b. Non-revenue Producing ($2,996,000) Revenue Bonds Repayment ($3, 100, 000) Total District Tax Rate Per $100 Assessed Valuation 1/ Annual Contingency Fund — Cumulative Years 1-4 71, 940 155,000 267,530 494,470 164,400 130, 118 155,000 449,518 $0.687 44,952 199, 952- 1.72, 580 155, 000 152, 260 479,840 151,100 130, 118 155,000 436,218 $0.364 43, 622 3/ 88, 574- 262,920 88,574 222,265 573,759 183,400 130,118 208,081 521,599 $0.496 52,160 335,160 249,042 584,202 192, 900 130,118 208,081 531, 099 $0.521 53, 103 339, 760 254,932 594,692 202,430 130,118 208,081 540,629 $0. 503 54. 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.475 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.450 54, 063 339,760 254,932 594,692 202,430 130.118 208,081 540,629 $0.428 54, 063 339, 760 254,932 594,692 202,430 130,118 208,081 540,629 $0.408 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.390 54, 063 339,760 254,932 594,692 202,430 130, US 208,081 540,629 $0.373 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.357 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 339,760 254,932 594,692 $0.343 54, 063 202,430 130,118 208,081 540,629 $0.330 54, 063 339,760 254,932 594,692 202,430 130, 118 208,081 540,629 $0.318 54, 063 339,760 254,932 594,692 594,692 339,760 254,932 202,430 130, 118 208,081 540,629 $0.307 54, 063 202,430 130,118 208,081 540,629 $0.296 54, 063 339, 760 254,932 594,692 202,430 130,118 208,081 540,629 $0.287 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.279 54, 063 339,760 254,932 594,692 202,430 130,118 208,081 540,629 $0.269 54, 063 339,760 408,342 748,102 202,430 130, 118 139,464 208,081 680,093 $0. 418 68, 009 339,760 408,342 748,102 202,430 130,118 139,464 208,081 680,093 $0. 405 68, 009 339,760 408, 342 748,102 202,430 130,118 139, 464 208,081 680,093 $0.394 68, 009 339,760 408,342 748,102 202,430 130,118 139, 464 208,081 680,093 $0. 383 68, 009 339,760 408,342 748,102 202,430 130,118 139, 464 208,081 680,093 $0.373 68, 009 339,760 408,342 748,102 202,430 130,118 139, 464 208,081 680,093 $0.363 68, 009 339,760 408,342 748,102 202,430 130,118 139,464 208,081 680,093 $0.354 68, 009 339,760 408,342 748,102 202,430 130,118 139,464 208,081 680,093 $0.345 68, 009 339,760 408,342 748,102 202,430 130, 118 139,464 208,081 339,760 408,342 748,102 202,430 130, 118 139,464 208,081 680,093 680,093 $0.337 68, 009 $0.329 68, 009 339,760 36,323 376, 083 202,430 139,464 341,894 34, 189 —''Fund to provide a 10 percent contingency annually. This includes original fund in footnote Zl. 2 / .— Contingency Fund contains $310, 000 raised from District tax revenues for 2 years prior to operation. 3/ — Reserve fund depleted in year 2 to cover interest payment on revenue bonds. , -102- If the Phase II program was constructed in accordance with esti- mated demand, the marginal revenue produced thereby (added net revenues available for debt service after payment of added expenses) under full operation would only be capable of retiring a debt of approx- imately $2, 000, 000 under optimum financing terms. The estimated present cost for acquisition and construction of Phase II amount to $3,474,000. The development of Phase I will allow the Inner Lagoon to have access to the ocean through the Phase I harbor. This will open up the Inner Lagoon and thereby increase adjoining property values and develop- ment potential considerably. It is suggested that the District consider purchasing options to buy the property designated for use in the Phase II harbor prior to construction of Phase I. It would be unwise for the District to open up the Inner Lagoon without proper assurances that it will be able to acquire the land and water area necessary to accommodate future public boater demands at reasonable pre-project prices. Once ocean access is provided, the Inner Lagoon will, to a limited extent, be usable by ocean-going vessels berthed therein. The District (and SDG&E) must also be extremely cautious in issuing permits for private use of the Inner Lagoon which might allow unfair competition to the publicly supported facilities. Consideration should be given to the imposition of water use fees for facilities developed in the Inner Lagoon, since the development of such facilities is dependent upon ocean access provided by the Phase I harbor. Such fees could serve as an additional revenue source not considered in this report. There is also the strong possibility that with the buildup of demand stimulated by the development of Phase I, the District might be able to lease land to concessionaires for construction, operation and main- tenance of the Phase II facilities shown in the plan. Development of the Phase I program by the District is considered to be feasible under a cooperative Federal, State and local financing arrangement. The total first cost of the Phase I harbor is estimated at $12, 828, 000 at current price levels. This estimate includes $11, 380, 000 for construction and $1, 448, 000 for land and water area acquisition. 103- The sources of funds for raising the $12, 828, 000 necessary for the Phase I program are listed following: Federal Corps of Engineers Project $4,482,000 State Loans For Revenue-Producing Facilities $2,250,000 For Non-revenue-Producing Facilities 2, 996, 000 5,246,000 Revenue Bond Issue 3, 100,000 Total $12,828,000 a. Federal Corps of Engineers Project It is recommended that the District seek Federal funds for construc- tion, maintenance and replacement of certain navigational features in the harbor as explained under Part F of this section. b. State Loans It is recommended that the District apply for two loans from the State Division of Small Craft Harbors under the State Small Craft Harbor Law. The first loan would be for $2, 250, 000 for land acquisition and construction of the revenue-producing facilities in the Phase I harbor. The second loan would be for $2, 996, 000 for construction of the non- revenue-producing facilities in the Phase I harbor. These loan pro- grams are explained in Part H of this section. The first loan must be repaid in 30 years at 4 percent interest per annum. The second loan must be repaid in 50 years at the same in- terest rate. It is assumed, pursuant to State policy, that the 50-year loan will be non-interest bearing until such time as repayment com- mences. The pro forma financial feasibility analysis for the Phase I harbor shows that repayment of the 50-year loan should commence in operational year 21. 104- c. Revenue Bond Issue In addition to Federal and State financial assistance, the District must contribute $3, 100, 000 in order to develop the Phase I harbor. It is recommended that the District raise these funds through the issuance of 30-year revenue bonds in accordance with Part G of this section. For this analysis, an interest rate of 5 percent per annum is charged against these bonds. 2. Pro Forma Revenue-Cost Analysis Table XXI presents a pro forma revenue-cost analysis for the Phase I harbor. This table reflects the financial feasibility of the project over a 30-year period. Year 31 is shown as an illustration of the revenue- cost situation for the harbor after repayment of the first State loan and the revenue bond issue. The contingency fund will receive 10 percent total costs annually, This is provided to meet State requirements for a revenue-cost ratio of 1. 10 to 1. 00 annually. The contingency fund will receive $310, 000 during the first operational year of the project. This amount will be raised by the levy of a tax on District residents two years prior to operation of the harbor. The fund will be used to pay interest on the revenue bond issue for the first two years in order to allow a 2-year moratorium on the payment of principal on this debt. The table shows the estimated tax rate per $100 assessed valuation that will have to be paid by District residents over the first 30 years of the project. 105-