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By Investigative Reporter, Linda Sutter – December 9, 2025

Today at the Board of Supervisors the Crescent City Harbor District placed an item on the county agenda for  approval of the Harbor facilities Plan. The Plan was merely a tossed word salad that spoke of Measure C tax funds with a list of maintenance tasks in hopes to demonstrate and talk the Supervisors into using the Measure C funds on everything but the USDA loan payment of $262,000.

CEO Rademaker, who is supposed to represent the Harbor District didn’t bother making an appearance in support of the Harbor Facility Plan that he himself developed. Chair Joey Borges commented that the plan looked like something AI created as it didn’t have specific projects listed but instead list of maintenance jobs without specific costs or dates to fulfill the projects.

Chair Joey Borges

Sandy Moreno tried to explain to the board the harbor has a plan to negotiate with USDA WHERE the harbor only pays down 10% of a $262,000 dollar loan payment, such as $26,000 per year for the next 3 years and take the rest of that Measure C money and set $90,000 aside in a reserve.

The problem with that is for the last 10 to 15 years the harbor has been setting aside $180 per month from approximately 26 fishermen for the last 10 years that was suppose to pay for the insurance of the harbor. That money disappeared and nowhere to be found. So, trying to sell the Board of Supervisors a $90,000 a year reserve plan is as worthless as the words developed to say it.

Ms. Moreno failed to unveil the numbers.

Sandy Moreno

The numbers are this:

Currently there is $276,000 in the LAIF account. $181,500 is earmarked for insurance. Which leaves a balance of $95,000 dollars to pay the USDA loan as well as operations for the remainder of the fiscal year. The County according to Moreno has approximately $370,000 of Measure C funds.  Even if the County wrote out a check for $262,000 dollars to the USDA, that would leave a balance of $108,000 plus the $95,000 left in LAIF, for a total of $203,000 it would not be enough to pay the $350,000 to $375,000 dollars due to the Fashion Blacksmith in January.  The $203,000 would probably pay for operations for the remainder of the fiscal year. These numbers are not showing any potential revenue which the harbor receives from the businesses and 28 RV permanent campers. It is possible for the Harbor to make it on what they have but increasing pay for everyone these past months did not make nice with their dire financial situation.

Actually, former City Councilwoman, Donna Westfall called out during her public comment how ludicrous the Harbor was in giving raises. A raise of $20,000 to Harbor Master, Radamaker; increasing the hourly wage for Sandy Moreno from $50 to $75 and then increasing wages to all other Harbor employees. Additionally, she mentioned that her CPRA request from November 12, 2025 to the Harbor concerning the LAIF account was never responded to. (LAIF stands for Local Agency Investment Fund). A year ago they had a fund balance of over $800,000. This year it’s down to around $200,000. She wanted to know what $600,000 was spent on.

Former Crescent City Councilwoman, Donna Westfall

After Moreno’s presentation Supervisor Starkey stated, this is a dangerous shell game you got going on here. If you pay your loan of $262,000 that leaves you with $31,000 and you can’t draw down on $31,000 because you need $50,000 at all times as a balance.  Starkey goes on to say, “My concerns are you don’t have an agreement with USDA yet, You have had a conversation, you need to pay  your loan.” Moreno stated, “We are on the brink of insolvency, I have been saying it for years. However, we have a plan if certain people will help us with this.” Starkey responded, “We have an  obligation to the people of this county to assure the taxpayers that you pay your loan.”

Harbor Commissioner Rick Shepherd stated “I was one of the forefathers who campaigned in 2017 for Measure C to save the harbor. We are putting forth a plan today that is making that possible.  So with the plan you have today we are asking to help save the harbor. we are asking to pass the harbor facilities plan which has nothing to do with Measure C, or our negotiation with USDA.

Harbor Commissioner, Rick Sherpard

Public member Roberts stated he was on the Measure C Committee and the intent of this was to pay off the USDA LOAN. And, that would free up $250,000 to conduct their maintenance projects which obviously has not been accomplished.

Roberts from Measure C Committee

Harbor Chair Gerhard Weber also spoke at the podium, “all I am asking you to do is vote for the harbor facilities plan. You voting on this plan does not approve of any reductions that we make to the USDA. What we are asking for is that we would like to pay USDA first but we are only asking USDA to accept 10% as full payment for this one year two or three years so we can use the funds for maintenance that we are already doing.   We are trying to free up funds so we can utilize  Measure C funds for grant funds. If you have cash flow problems that is going to be an issue. By reducing the USDA LOAN for 3 years this will give us a cushion to make the grants work. During public comment Weber also stated, “We need this harbor facility plan approved and also did not understand the implications of Measure C.”

 Gerhard Weber, Harbor Chairman

Supervisor and Chair Joey Borges told Weber the second paragraph of the Harbor Facility Plan stated, “The purpose of the Harbor Facility Plan was to pay the USDA LOAN first with Measure C funds and utilize anything left over a required $50,000 balance could be utilized for maintenance projects. “

Public Member Hank Akin stated the following, “ I think the board is well founded in your concerns and more grounded than you know. USDA isn’t gonna play there are emails out there where they have failed communication and the harbor is not admitting to that. Measure C was to make a payment. The decision not to make the payment was not by board action it was by an employee not to make it. It came to the board after the fact. The plan should have been to come to this board directly. Now by not paying the loan a $500 dollar penalty for noncompliance is daily compounded and extended beyond Measure C. The people voted for measure C to save the harbor back then they didn’t vote to make bad decisions and to pay for those bad decisions. If I had 30 minutes of time to discuss this matter like Moreno had I could blow this out of the water. The take away is four years of experience dealing with bankruptcy is a real talent expressed earlier by Moreno. It is telling.”

Hank Akin

The Harbor Facility Plan also stated within it’s contents that the Measure C funds could be utilized for matching grant funds, however, the ballot of Measure C does not speak to that whatsoever. The Measure C funds are explicit, pay the USDA loan first.

Several members of the public spoke out in regards to this very important decision that the Harbor Commissioners were asking the board to do. Sam Strait got up and stated, I’m confused. Why are we talking about Measure C funds and not the harbor facility plan.

Sam Strait

Harbor Commissioner Nehmer spoke, “ I appreciate you notice there are specific timelines, no cost associated with the plan and that there are harbors up and down the coast that have harbor facility plans. All those details of specific projects and itemization of maintenance are required. Although this was presented at one meeting for us I believe it needs to become a workshop and needs to be presented back as county counsel has mentioned. Represented with timelines and assessments to create actual projects to serve as a harbor facility plan to serve taxpayers  and pay our USDA  loan in full.”

Harbor Commissioner, Annie Nehmer

 No Action was taken, The Harbor District will need to take time to develop a harbor facilities plan.