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RESOLUTION APPROVING AN AGREEMENT WITH DUTRA GROUP LLC FOR SERVICES RELATED TO THE MAINTENANCE DREDGING OF THE BUCKLEY COVE INLET, AUTHORIZING FUNDING APPROPRIATIONS, AND APPROVING AMENDMENT NO. 1 WITH PACIFIC BOAT SERVICES INC
recommended action
RECOMMENDATION
It is recommended that the Stockton City Council adopt a Resolution:
1. Authorizing the City Manager, or designee, to appropriate a total of $4,200,000 in funding and expenditure authority to Capital Improvement Project EV22601 for the Buckley Cove Inlet Project, funded as follows: $1,700,000 of Communities Facilities District funds, $500,000 of General Fund to be repaid back to City through a (10) year repayment plan with Pacific Boat Services Inc., $1,000,000 from RiverPoint Landing Marina & Resort pursuant to lease obligations, and a $1,000,000 from the Boat Launching Facilities Fund;
2. Authorizing the City Manager, or designee, to execute Amendment No.1 to Contract No. 422000045 with Pacific Boat Services Inc. that will establish a ten (10) year repayment plan to reimburse the City’s General Fund;
3. Authorizing the City Manager, or designee, to receive, deposit, appropriate, and establish revenue budgets for repayment revenues from Pacific Boat Services Inc. and RiverPoint Landing Marina & Resort, with such revenues returned to the General Fund;
4. Authorizing the City Manager, or designee, to approve necessary budget amendments and establish expenditure and revenue accounts, as may be required to implement project funding;
5. Authorizing the City Manager, or designee, to execute an agreement with Dutra Group LLC in an amount not to exceed $2,900,000, for services to dredge the inlet located at 4911 Buckley Cove Way;
6. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the Resolution.
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Summary
This action authorizes funding and implementation of the Buckley Cove Inlet Dredging Project (CIP No. EV22601). The proposed resolution appropriates $4,200,000 from multiple funding sources, including Community Facilities District (CFD) funds, the Boat Launching Facilities Fund, General Fund financing to be repaid, and a $1,000,000 contribution from RiverPoint Landing Marina & Resort pursuant to an existing lease agreement (Attachment A). The resolution also authorizes Amendment No. 1 to the Pacific Boat Services Inc. agreement (Attachment B) to establish a ten-year repayment plan to reimburse the General Fund (Exhibit 2 to the proposed Resolution, establishes necessary revenue and expenditure authority, and authorizes required budget amendments). Additionally, the resolution authorizes an agreement with Dutra Group LLC for dredging services at Buckley Cove Inlet (Exhibit 1 to the proposed Resolution).
DISCUSSION
Background
The property located at 4911 Buckley Cove Way is held by the City under a grant of trust from the State Lands Commission in furtherance of navigation, commerce, and fisheries. The property includes an inlet shared with two adjacent long-term waterfront lessees, RiverPoint Landing and Pacific Boat Services Inc. (PBS), both of which provide marina facility operations for recreational boaters. Over time, sediment has accumulated in the shared channel, significantly reducing water depth and impeding vessel navigation.
In 2023, as part of a multi-phase approach to dredge the Buckley Cove inlet, the City released a Request for Proposals (PUR 24-015) for consulting and engineering services to support permitting, sediment analysis, and project management for the dredging project. Anchor QEA, LLC was selected to complete phase one, which included initial studies, permitting coordination, and development of project specifications that would be utilized in a formal solicitation for construction services. Phase two consists of performing the dredging and relocating sediments as per State requirements.
Present Situation
In June 2025, the Economic Development Department released an Invitation for Bids to procure a contractor for the maintenance dredging of the Buckley Cove inlet. Following the competitive bidding process, the City received three (3) responses and identified Dutra Group LLC as the lowest responsive and responsible bidder. The Dutra Group is a family-owned marine construction company with over 100 years of experience in dredging and marine infrastructure projects, with a strong track record in navigation- channel maintenance, flood control, and coastal restoration. Their experience and integrated capabilities position them to effectively perform the required dredging work.
To proceed with phase two of the project, the City must complete funding appropriations, execute a construction agreement, and establish a cost-sharing and repayment structure with PBS. Project funding will be supported through available fund balance designated for Buckley Cove improvements, along with required contributions from RiverPoint Landing and PBS, consistent with the terms of their long-term leases with the City. As beneficiaries of improved navigational access, both operators play a critical role in supporting the project. Without dredging, continued sediment accumulation will further restrict safe boating access, limit use of the marina facilities, and reduce overall recreational activity within the inlet. The following section outlines the proposed amendment to the PBS lease agreement to formalize its repayment obligations.
Under the terms of its long-term lease agreement, PBS is required to contribute a total of $500,000 toward the Buckley Cove inlet dredging project. To facilitate project implementation while maintaining PBS’s ongoing operational investments, the City has agreed to structure this obligation through a ten-year repayment plan, with monthly payments totaling $50,000 annually. This approach reflects PBS’s continued role as a cooperative partner since execution of the long-term lease, as well as its demonstrated commitment to making ongoing improvements to its marina operations. The proposed lease amendment formalizes the repayment terms to begin July 2028, with the full amount paid by the end of July 2038. Memorializing this repayment schedule ensures the City is reimbursed for PBS’s required share of project costs over the agreed-upon period.
FINANCIAL SUMMARY
The total estimated cost for the dredging project is approximately $4.69 million. Funding for the project includes $489,801 already in the project for engineering and permitting consulting services. Remaining funding for the project is supported through a combination of City-designated funds and contributions from the two adjacent lessees, consistent with the terms of their existing lease agreements. RiverPoint Landing will contribute up to $1,000,000 toward the cost of dredging at the time of the project completion, while Pacific Boat Services (PBS) will contribute up to $500,000, per the payment schedule reflected in the lease amendment (attached as Exhibit 2 to the proposed Resolution). These contributions help offset the City’s overall project costs while ensuring compliance with lease obligations tied to maintenance of the shared inlet. On April 14, 2026 Council approved by Motion 2026-04-14-1602-02 (Attachment C), a $2.2 million allocation to the project, which includes $1,700,00 from CFD and $500,000 from the General Fund. The $500,000 of General Fund is to be repaid back to City through a ten (10) year repayment plan with Pacific Boat Services. Additionally, the project will be supported with $1,000,000 from the Boat Launching Facilities Fund balance.
Attachment A - RiverPoint Landing Lease
Attachment B - Pacific Boat Service Lease
Attachment C - Approved Motion 2026-04-14-1602-02