Harbor District Meeting: Nov. 20, 2013

Agenda Item 6: Commercial Activity Permits for non-lessee fish buyers

The following questions were asked at the Nov. 20, 2013 Harbor District meeting regarding the Commercial Activity Permits For Non-Lessee Fish Buyers policy approved by the board of Harbor Commissioners in 2012.  

How this relates to current business at the harbor in real terms:

1. How are these "buyers" defined? Do fishermen who are berth holders count? Are they exempt as suggested by memo from Commissioner Hollsinger? Are these companies with multiple trucks? Single people with a private vehicle? Anyone with a Fish & Game book? Is there a threshold for volume? A permit if you buy one time? 100 lbs or more? only semis full?
2. How are buyers identified? Assuming that a definition is determined, how are buyers identified? How is a truck owned by Three Captains or Morning Star and a truck owned by a non-lessee buyer differentiated? What about unmarked vehicles?  Is this for private vehicles? Semi trucks? When one buyer has multiple trucks how is that handled? What about fish walking off of the pier on a hand truck or driving off on a fork lift etc? Does that count?
3. How will fees be assessed? Assuming buyers can be identified (which is a big leap) how will the quantity/volume purchased be reported and verified? How will the buyers pay fees? Who will calculate the fees due? Is there a minimum volume? Are "buyers" supposed to pay for purchasing 100 lbs? Stop by the office and pay $1.00? Will they receive a bill in the mail? Is it the leaseholder at the end of Johnson Pier's job to invoice their non-lessee partners?
4. How will this be enforced? Assuming buyers can be identified and volume can be verified (which is hard to fathom) how will this be enforced? Is there a penalty if the three leaseholders allow people to buy fish without a permit? Is there going to be additional harbor staff hired to inspect and enforce? Is there going to be a gate at the end of the pier, video camera at each hoist? Is every vehicle leaving the pier going to be inspected? What happens if someone is unaware of the system? What if someone knows about the system, but doesn't have 30 days notice to get a permit? Will harbor staff impound the truck full of fish? 
5. Will this hurt commercial fishermen and small buyers?  Who will pay for the enforcement? The fishermen? Will the District start enforcement with "non-lessee" buyers with large scale businesses that have partnered officially or unofficially with existing leaseholders, and installed equipment on Johnson Pier? When CAP permits be required for non-lessee fish buyers?  When will non-lessee fish buyers be required to pay fees include in the policy approved by Harbor Commissioners in 2012?

Fishing Fees—Harbor District Meeting: Aug. 7, 2013

Agenda Item 5

Review of Fish Buying Lease, Fish Buying Fees and Fee Enforcement

Commissioner Brennan's comments: 

During the July 17th 2013 Harbor District meeting in South San Francisco the board reviewed and discussed current Fish Buying Fees, Fish Offloading Fees, Fee Enforcement and Fish Buying Activity Permits.

The General Manager made it clear at the July meeting that the fish buying fees and fish offloading fees required in the leases held by Morningstar, Pillar Point Seafood and Three Captains don’t reflect market conditions of Northern California commercial fishing ports.

All three Harbor District leases currently require fish buyers pay $10.00 per ton for wet-fish, $.01 per pound for finfish and shellfish, and five percent (5%) for all retail fish sold on-top of $.01 per pound. Additionally the leases require fish off-loaders pay $10.00 per ton for wet-fish and $.01 per pound for finfish and shellfish.  That means that if a leaseholder offloads fish and buys fish they would be required to pay a total of $20.00 per ton for wet-fish and $.02 per pound for shellfish and finfish.

Fishermen that sell finfish and shellfish/crab from fishing vessels at Pillar Point Harbor are not required to pay the District five percent (5%) for retail sales, and for this reason it’s inconsistent to require Morning Star Fisheries, Pillar Point Seafood and Three Captains to pay a 5% retail sales fee.

Based on data included in the General Managers July 10, 2013 Memo it’s apparent that other Northern California commercial fishing ports charge no fees or much lower fees for fish offloading and fish buying.

At the July 17th meeting it was noted that the wet-fish offloading fee included in the General Managers July 10, 2013 memo was incorrect.  The City of Monterey charges $1.74 per ton NOT $1.74 per lb. for squid offloading.  The General Manager should correct the misinformation included in his Memo, as he was aware of the correct fee on May 17, 2013 9:33 am via an email from staff.

After reviewing the fee data provided at the July 17 meeting it's clear that SMC Harbor District wetfish, shellfish and finfish fees are not competitive with other commercial fishing ports in the area.  

Fish Purchasing Fees and Fish Buying Fees trickle down to commercial fishermen.  When the Harbor District attempts to extract fees from commercial fishing businesses, without accurate data and sound reasons for comparatively high fees the District runs the risk of harming small business and weakening the local economy.   

The fees and fee enforcement included in the current leases are structured in a way that is counterproductive to the goals and priorities of the Harbor District.

The Coastal Commission adopted SMC Harbor District Appeal No. 133-79 that specified Condition (1B), "one-half of all slips for the exclusive use of active commercial fishing boats."  Local Coastal Program (LCP) section 12.5.A states, "commercial fishing and recreational boating are on an equal basis, and to accommodate those needs accordingly." This applies specifically to Pillar Point Harbor with regards to space and resources.

The Harbor District has a vested interest in the success of the commercial fishing fleet.  Requiring arbitrarily high fees for offloading and fish buying at Pillar Point Harbor isn't a sustainable approach to generating revenue and it's not in keeping with the goals and priorities of the Harbor District or the Midcoast LCP.  

Commissioner Brennan's Motion:

For these reasons I move to amend all three leases, discontinue all fees and raise the minimum base rent to $3000.00 per month, to be effective as of July 1, 2013. 

The motion failed for lack of a second. 

• It should be noted that the Harbor District currently does not have a way audit or enforce the fish offloading and buying fees at Pillar Point Harbor. Johnson Pier does not have a scale, a gate, video cameras or a staff person dedicated to counting fish.
• Read the Dec. 2014 Dornbusch Report