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The council last week approved the assign the remainder of the shoreboat service agreement to Eric Mahan.
The council also amended the end float lease agreement with Catalina Jet Ski Corporations.
The vote was unanimous.
According to City Manager David Maistros, the city received a request to transfer the current shoreboat agreement to Eric Mahan. “He would take it over,” Maistros said. “He’s been partners in the shoreboat business for a period of time.”
“If you recall, a year and a half or so ago we had a similar discussion or a similar request to assign the shoreboat agreement to a group, I believe from San Diego at the time,” Maistros said.
According to Maistros, officials were not comfortable because there was a lack of knowledge about the group.
“We feel confident he can continue to operate this,” Maistros said.
One concern staff had, according to Maistros is that the shoreboat agreement and the end float agreement are two separate agreements even though the two agreements are with the same entity.
According to Maistros, if the entities change, if the personnel change, staff wanted the documents to support continuing operations for the shoreboats’ use of the end float.
Background
“On March 5, 2024, the City Council approved contract assignments of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement and the End Float Lease Agreement from Catalina Coastal Tours, LLC to two new corporations,” according to the staff report by City Manager David Maistros and Senior Management Analyst Devin Hart.
“Per the City Council’s approval, the Semi-Exclusive Shore Boat Franchise Agreement was assigned to Avalon Shoreboat Service Corporation and the End Float Lease was assigned to Catalina Jet Ski Corporation with the condition that Scott Gorelczenko maintains ownership/control of both new corporations,” Maistros and Hart wrote.
“On June 17, 2025, the City Manager received a request from Scott Gorelczenko to assign the remaining term of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement to Eric Mahan. Gorelczenko will maintain the lease for the End Float with Catalina Jet Ski Corporation,” Maistros and Hart wrote.
“Though the End Float Lease and Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider agreements are separate contracts, it was the City’s intent to link the agreements,” Maistros and Hart wrote.
“Per the End Float Lease Agreement, subletting is prohibited unless approved by the City. In order to recommend that the City Council authorize the assignment of the remaining term of the semi-exclusive shore boat franchise agreement to Eric Mahan, Staff recommends the City Council concurrently amend the End Float Lease to allow for the semi-exclusive shore boat franchisee to operate from the End Float and moor overnight,” Maistros and Hart wrote.
“In addition to authorizing the assignment, City Staff recommends amending the End Float Lease agreement to:
“1. Modify the approved use to include operations conducted by the lessee,
“2. Mandate the continued operations of the semi-exclusive shore boat franchisee from the End Float, including mooring overnight on the End Float, and
“3. Require the agreement for any approved subletting, and any subsequent amendments, be approved by the City Manager,” Maistros and Hart wrote.
“If the assignment is approved without the concurrent lease amendment, the impacts to the Harbor may be detrimental to overall operations — creating congestion and other negative impacts to commercial and recreational activities,” Maistros and Hart wrote.
