City manager will negotiate and execute contract
The City Council this week authorized the city manager to negotiate a contract with Dion & Sons, Inc. to operate the Avalon fuel dock. The project will include building and operating a restaurant on the dock.
City Manager Denise Radde told the council that the fuel dock draws $250,000 annually from the Harbor Fund.
“The Avalon Fuel Dock operates year-round and serves the approximate 20,000 transient boaters that visit Avalon Harbor annually,” according to the staff report by Administrative Analyst Devin Hart and Radde.
“However, the Fuel Dock Facility, under City stewardship, is not currently sustainable and operates at a net loss,” according to the report.
“Due to safety issues exacerbated by a storm in December 2014, the Avalon Fuel Dock was demolished in January 2015,” according to the report.
The dock was renovated with grant money from the California Department Parks and Recreation, Division of Boating and Waterways, according to the Hart-Radde report.
“Due to the agreement established by the grant, the City is not able to lease the property for profit,” they wrote.
Instead of a lease, the city asked anyone responding to the request for proposals for the dock to create trust fund to finance improvements and maintenance of the fuel dock.
“Dion & Sons, Inc. proposed the most well-rounded approach to operations of the Avalon Fuel Dock that would create the greatest benefits to the City,” according to the report.
According to Hart-Radde, the proposal includes reducing fuel costs by about $1 a gallon and turning the Cave area into a wine cellar and tackle shop.