Don't bother looking for a river tour on the Matthew McKinley Victorian paddleboat these days. The venerable Sacramento fixture now is moored in Stockton.

Almost as hard is hitching a ride on the popular River Otter water taxis.

One of two boats is operating, and the service's Old Sacramento ticket booth keeps spotty hours and is hard to find because of poor signage, city officials say.

For those reasons and more, Sacramento Yacht Charters, the company that owns and operates the boats, faces a 30-day deadline: Resolve a host of city complaints or be dropped as the waterfront's exclusive operator.

"Sacramento Yacht Charter's mode of operation has been promises and then no delivery," said Barbara Bonebrake, director of the city's Convention, Culture and Leisure department.

Officials from Sacramento Yacht Charters disputed the laundry list of concerns but did acknowledge some problems, citing a drop in ridership because of the poor economy, slowed cash flow and the intractability of Sacramento officials in negotiations.

"We've been running taxis and cruises as stipulated under our agreement with the city," said Gary Bradus, attorney for Sacramento Yacht Charters.

Still, Bradus is reluctant to debate the city in print. He says the company understands that the City Council is trying to work with it and at a meeting last week gave the firm a 30-day reprieve. Bradus said he wants to keep public discourse as positive as possible.

More meetings are scheduled this week, moderated by Councilman Ray Tretheway, whose district includes Old Sacramento.

"Our hope is we will work through the open issues in a manner satisfactory with the city and my client," Bradus said.

On Saturday, riders lined up for the Otter and the Spirit of Sacramento paddleboat for trips on the Sacramento River. A large sign had been placed on the ticket booth. Sacramento Yacht Charters workers said an evening run had recently been added to the taxi schedule.

Bridgette Fanucchi of Sonora hurried to jump on the Spirit for a lunch cruise with friends.

"This was my friends' idea," she said. "They wanted to do something different, before we have to go back to our cowtown."

Eight-year-old Anne Guidici traveled from Winters with her friend and her father for a special birthday ride on the River Otter.

"I'm very excited," she said. "I haven't done anything like this before."

The three planned a lunch in Old Sacramento after the ride.

None of Saturday's riders reported problems or concerns.

In 2006, the city awarded Sacramento Yacht Charters a contract to operate all waterfront services, including the historic replica riverboats Matthew McKinley and Spirit of Sacramento. The contract also required the company to maintain the River Otter service, start a land/water trolley tour service and make improvements to the city's south barge – all in addition to its yacht cruises.

There were problems from the beginning.

Sacramento Yacht Charters missed a deadline to buy the taxi business from the Sacramento Metropolitan Chamber of Commerce. The deal was finished last fall, after the city put the company in default, a first step toward breaking its contract.

Co-owner Roy King has said Sacramento Yacht Charters reluctantly took on the taxi business, historically a money loser. Last spring and summer, the taxis didn't operate because King said the boats were in unexpectedly poor shape and extensive repairs had to be made – a contention disputed by the chamber.

In 2008, the city contends, the company has offered only limited rides on the taxi. The city report also details how only one trolley has operated when the contract calls for two, and that it is not accessible to the disabled as promised.

Sacramento Yacht Charters also was supposed to replace the Matthew McKinley with another replica paddleboat, but has not. Bradus said the company couldn't get financing because of the default issued by the city.

The city report says Sacramento Yacht Charter has taken in 40 percent less than a previous riverboat contractor.

"It cannot operate a high-quality riverboat, water taxi and amphibious trolley operation in Old Sacramento," the report said.

King told the council last week that "he feels like the worst businessman in the world" when he listened to Bonebrake's litany of complaints. But he defended his company's performance, saying he's operated in other cities for 30 years without problems.

"I don't understand how every time we produce something that has been asked for, it's not what they want, or they want something different," he said.

Call The Bee's Terri Hardy, (916) 321-1073.