Some wonder if Naples should privatize City Dock

NAPLES — Naples officials don’t want to toss the Naples City Dock another lifesaver.

But the question of how to keep the Naples landmark out of the red has some city officials wondering whether they should drift away from the dock business.

Naples City Council members in recent weeks have raised the question of whether the city plans to look into privatizing the dock. The questions come as council members were asked to transfer money to keep the dock afloat.

The council voted 5-2 in June to transfer $185,176 from the city’s general fund to the dock fund to help balance the budget. They also gave City Manager Bill Moss the ability to make $229,140 worth of reductions to the budget.

Councilwoman Teresa Heitmann and Councilman Gary Price cast the dissenting votes. Price said these transfers weren’t the best way to solve the dock’s ongoing financial problems.

“Shut it down and lease the dock for 100 years at $1 a year,” Price said during the June 3 council meeting. “I’ll tell you if we lease it for a $1 a year, we’d be $400,001 a year ahead.”

While Price later said his suggestion during the June 3 meeting was an extreme example, he said he would be interested in looking into whether the city would benefit from privatization.

“I’m hoping the business plan would give us an alternative to run the dock and be profitable,” Price said. “But if part of the business plan is hope that the economy turns ... hope for a better day is not a good business model.”

The dock has been losing money for about three years, and Moss said the slumping marine industry has contributed to the declining revenue. The business plan, Moss said, should alleviate the budgetary problems.

That’s something Councilman Bill Willkomm said he’s heard before.

Willkomm said he was told in 2006 that there was a problem at the dock, and that the staff was developing a plan to solve the budgetary woes. Three years later and Willkomm said the problem has just become worse.

“There’s got to be some sort of accountability of running (the dock) into the ground,” Willkomm said. “What they’ve done so far is not working. These people have to be held accountable.”

Accountability is Willkomm’s reason for asking the city to look into privatization. It’s not that he wants to give up control of the dock; Willkomm said the issue is more about responsibly running the dock.

“I don’t know what the problem is,” he said. “I see no reason why it can’t be run properly.”

Dock operations have been an issue, and those concerns have led city officials to look into privatization in the past. Naples City Council last looked into privatization in 2003, when then-City Manager Kevin Rambosk recommended the city study the issue.

Privatizing the dock meant that city staff would have extra time to devote to other issues, according to a March 2003 article in the Naples Daily News. Community Services Director Dave Lykins said at the time he spent about 40 percent of his work day focusing on the dock, the report went on to say.

The city asked for proposals from companies in spring 2003, and while 17 marine management firms expressed interest in taking over control of the dock, the city received only three proposals.

Naples Mayor Bill Barnett said privatizing the dock has never really been off the table. The city just hasn’t been actively looking for management companies.

“Anybody who is interested, they can always submit an offer,” Barnett said. “(But) it’s got to be something that’s going to work for the city, and one thing is for sure, we’re not going to sell that dock.”

At the time, International Marinas, L.C. of Fort Lauderdale, said it would pay the city $100,000 a year to lease the dock, or 15 percent of the gross operating revenue. At the same time, WESTREC Marina Management Inc. of Dania Beach said it would pay the city $375,000 a year to lease the dock, or 75 percent of the total gross revenue.

The third proposal was disqualified, Lykins said.

Naples City Council has asked to obtain copies of those proposals, and Moss said he planned to have the proposals ready for council before their next meeting.

And while privatizing the dock could mean just franchising the dock, like the operation at Lowdermilk Beach, it could also mean turning over all operations to a private management company.

Moss said he isn’t ruling out looking into privatization, but did say he understood the emotions surrounding the dock.

There has been interest in taking over control of the dock recently, Barnett said. He would not comment on who has expressed interest.

The council will discuss the business plan for the city dock in August.