Inquiry Clears Redondo in Managing Harbor Funds, Queries Live-Aboards

A State Lands Commission investigation into alleged mismanagement of King Harbor funds by Redondo Beach city officials has cleared the city of wrongdoing, but questions whether nearly 300 marina residents should continue to live on boats.

In a letter mailed this week to City Manager Tim Casey, the commission describes the city’s management of King Harbor as “sound.” The letter, which summarizes the investigation, went on to make several recommendations, including calling for a study of residential use of boats in the marina.

“Private, long-term residential use, such as houseboats and live-aboards, is for a purely private purpose that is unrelated to . . . the purpose for which tidelands are uniquely suited,” the letter said.

Ironic Twist

Ironically, the investigation was prompted by boat owners, including some live-aboards, who were upset at the way the city was spending harbor revenues.

About 20% of the boats in the harbor are now occupied. The commission suggested in the letter that only 3% to 4% of the boats should be occupied to provide security surveillance for the harbor.

It asked the city to investigate the live-aboard situation and keep the commission informed, but threatened no reprisals.

City officials said it would be months before it comes to a conclusion on the issue. The City Council will discuss it at its next meeting Dec. 13.

A leader of the boaters’ group said he does not fear evictions, and criticized the report for not being critical enough of the city.

Casey said that there is little immediate threat of eviction. “Nobody, including the State Lands Commission, has suggested that 30-day eviction notices be sent out,” he said. “This will be a lengthy, deliberate process to find alternative solutions.”

Casey also said that the city is not directly involved in the leasing of individual slips. The city has four marine lease holders who rent dock space to boaters and does not usually intervene in those rental agreements.

A year ago, 33 boat owners wrote the state attorney general’s office complaining that the city inappropriately spent profits from King Harbor by running the area more for the benefit of private companies than for the public.

The attorney’ general’s office forwarded the complaints to the State Lands Commission, which is the watchdog agency of the harbor. Under state law, revenue from the tidelands portion of King Harbor must benefit public use of that area.

Michael Ford, who has lived on his 40-foot boat in King Harbor for 8 years, wrote the complaint. It alleged that the city violated the Tidelands Grant Act of 1915, which gave the city control over King Harbor.

The act gave the state tidelands in Redondo Beach--the area west of the median high-tide line--to the city for commercial, recreational and navigational purposes. The state reserved the right to take the tidelands back if it found the area was not being used for the benefit of all California residents.

“The harbor was established primarily” to promote “marine-oriented activities, such as boating, boating services, fishing and nautical museums,” said the boaters’ complaint. “These activities have been replaced or diminished by the promotion of bars and modern dance halls, which our city finds to be more profitable.”

Ford said the investigation did not deal sufficiently with all the allegations.

He cited the city’s recent purchase with $3.5 million in harbor funds of the property for the recently opened Sheraton hotel. The money should have been used to strengthen the breakwater, thus limiting the damage to boats in the January storm, he said.

Compliance Affirmed

However, the commission said it had investigated all “the questioned expenditures”--including the hotel land deal--and found they complied with the tidelands act.

Casey said the purchase of the hotel property was proper because it had a “spillover benefit” for the harbor, by providing more visitors and revenues.

Although Ford said he and a group of boaters known as the South Bay Boaters Assn. are willing to negotiate amiably with the city, he would not rule out asking the state for a more complete investigation.

If city officials “are going to put their heads in the sand and believe” this satisfies us, he said, “they better think again.”

Casey, who agreed the outcome of the investigation is “an ironic change of events,” said he is optimistic that the city and the boaters can discuss and solve many of the boaters’ complaints.

Councilwoman Kay Horrell, whose district includes King Harbor, said she is happy that the city has been cleared of the misappropriation allegation. “It sounds like the city has a sound policy,” she said, adding that the report needs study before any solutions can be suggested.

Another issue raised by the investigation was the manner in which boat slips are transferred.

The investigation revealed that in Marina Cove, one of the four marinas, the King Harbor Yacht Club has the right of refusal for any available slip before it is offered to other boaters.

That, according to the State Land Commission, is not appropriate. The commission suggested that slips be offered to the public on a first-come, first-served basis.

No one from the yacht club was available to comment Wednesday.

Ford and the other marine users also alleged improper safety inspections of structures in the harbor by the city.

The investigation did not answer these questions, but asked that the city provide further information about the city’s role in inspecting and repairing structures there.

Casey said that in the past the city has answered safety problems on a complaint basis. But recently an annual inspection program of the harbor area has been established, he said.