Local fish handlers reapply for right to operate

When a boat full of live fish comes home to Pillar Point Harbor, it's men like Mike McHenry who unload the catch. There are times when he and his team have transferred 100,000 pounds of squid into trucks in a matter of a couple hours.

McHenry's livelihood depends on those boats coming back full of fish. While the last two years have been banner years for crab, a staple fishery for local anglers, in less prosperous years it can be difficult to afford the license required to set up shop at the end of the harbor. In March, the leases held by McHenry, the owner of Pillar Point Seafood, Larry Fortado, who owns Three Captains Sea Products, and Dave Mallory, owner of Morning Star Fisheries, are set to expire. In the meantime, the local fish handlers have an opportunity to rework their lease agreements with San Mateo County Harbor District.

In mid-December, the district announced that prior to the expiration of the three existing commercial fish-buying leases it plans to invite proposals for other fish-buying facilities at Pillar Point. The news is raising concerns at the harbor because the public notice indicates an increase in the monthly fee. Plus, some are worried large-scale, out-of-town fish buyers will throw their hats in the ring, effectively tossing out longtime locals.

Four people wrote letters to the harbor district expressing their support for McHenry's fish handling operation. Local commercial fisherman Steve Fitz was among those recommending the existing lease agreements be extended.

"When considering the future lease arrangements now under review, please recognize the importance of maintaining an independent hoist not associated with large, restrictive fish companies," Fitz said in a letter to harbor commissioners.

McHenry, who started his business in 1982 and once paid $500 per month, currently pays about $2,400 per month to use a large building divided into three roughly 800-square-foot fish handling facilities. While he can currently afford to pay the new price of $3,000, he fears less prosperous years, when he says the local fishing community won't be able to afford the increased cost.

"(McHenry) will push those costs on to us, and fishermen will ultimately pay for this," said local commercial fisherman Jim Anderson, speaking of the trickle-down effect he thinks the lease increase will have on anglers.

This winter's announcement of the increase in commercial fish buying lease charges follows news last year that the harbor district would increase berthing fees for vessel owners and leases for harbor businesses. Likewise, the district got flak for setting seemingly arbitrary fees for commercial activity permits surrounding the Mavericks surf competition.

Harbor district General Manager Peter Grenell says the request for applications will offer existing leasees and the district an opportunity to renegotiate their agreements.

"The leases expire, and if we don't continue this activity, there will be no more fish buying on the pier," Grenell said. "Since there is no provision in the leases for a simple renewal, they must go through the state government code process."

The district received approval from California Department of Boating and Waterways to use a section of the state government harbors and navigation code to invite proposals for anyone, including the three existing leasees, interested in obtaining a lease to submit their applications.

This is different from a bid process, Grenell notes, because the district doesn't have to accept the highest bid.

"They need to make a proposal for lease terms that they feel works best for them," Grenell said.

The prospective proposals will outline their preferred lease arrangements. The district will create its preferred terms. Then the district and prospective leasees will sort out the differences. The harbor commission is then expected to announce a date and location where it will hold a public meeting to hear the proposals and get community feedback.

McHenry said he's worried that big buyers from Oregon and Washington, who already have tremendous interest in the San Mateo County coast, would outbid local fish loaders and processors.

"There are some people sniffing around that have a lot of money," he said. The presence of large-scale fishing enterprises and industrial processing companies has long been a sore spot for local anglers, who must negotiate with these big players when it comes to setting fish prices with the buyers.

This fall crabbers went on strike for several weeks in order to secure what they thought was a fair price. The job action took so long that some of the big companies left town.