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Home My WebLink About17 - Rent for Commercial Tidelands Uses in Newport Harbor - CorrespondenceRecieved After Agenda Printed July 25, 2017 Item No. 17 Subject: FW: Question From: Mike Glenn <michael. lg enn�°a�devion.com> Date: July 25, 2017 at 10:55:19 AM PDT To:<citycouncilknewportbeachca.gov> Cc: Robert McCaffrey <rtmccaffrey byahoo.com>, David Ellis <dlendelta-partners.com>, <hillary.davisnlatimes.com>, Thomas Johnson <tomjohnsonkme.com> Subject: Fwd: FW: Question Council, Contrary to the oft -repeated song of staff, the California State Lands commission verifies in plain wording that there is NO MANDATE AT ALL FROM STATE LANDS TO CHARGE ANY DOCK TAX. (See below for the forwarded email for proof). The majority of you were elected to STOP THE DOCK TAX and instead we have had an AFFIRMATION OF A DOCK TAX. I realize that there was a weak link on the 2014 council which prevented the Dock Tax from being unwound completely, but we should have the votes now to do so now, right? I ask that you look into fulfilling the campaign promises of 2014 in REVOKING the Dock Tax, which was a piece of property value according to the official documents by the OC Assessor -- you know: the people who set property values. This means that the Dock Tax was a violation of Prop 13, as it increased taxes on property values without bringing it to a direct vote of those who were being taxed There is absolutely zero merit in the proposal today to DOUBLE the dock taxes for commercial properties. Please do the right thing and unwind the Dock Tax, which was the issue that got me involved with local politics to begin with. Give the people back the property that they purchased. This is a property seizure of —850 docks by the 2012 council which amounts to nearly one BILLION dollars in private property that was seized by the government. It's time to restore private property rights in Newport, and the seven of you have the keys to do so. It's time. Thanks, Mike From: Boggiano, Reid@SLC[mailto:Reid. Boggiano(d)slc.ca.gov] Sent: Monday, May 08, 2017 4:02 PM To: Mike Glenn Cc: Caldwell, Vicki@SLC Subject: RE: Question There is no specific code, however, not charging fair market rent would constitute a gift of public funds. To determine fair market rent, the Citi- of __',, ewport prepared an appraisal relating to its mooring buoys and it was reviewed by Commission staff. From: Mike Glenn [mailto:michael.glenn@devion.com] Sent: Monday, May 08, 2017 3:40 PM To: Boggiano, Reid@SLC <Reid.Bo ig anogslc.ca.gov> Cc: Caldwell, Vicki@SLC <Vicki.Caldwellgslc.ca. gov> Subject: RE: Question Thank you Reid! I am still not able to find in the code where the cite has to charge "fair market values" (or how those are supposed to be quantified, since there is not much in terms of a free market when it comes to slips./moorings'). Can you clarify these for me? Thanks so much! Mike From: Boggiano, Reid@SLC [mailto: Reid.Boggiano@slc.ca.gov] Sent: Monday, May 08, 2017 3:31 PM To: michael.glenn@devion.com Cc: Caldwell, Vicki@SLC Subject: RE: Question IIi Mike, Vicki forwarded me your email regarding some granted lands questions you were inquiring about. In order to best answer your questions, a little background is required. Tidelands are part of what is sometimes referred to as "sovereign lands." For more information on the legal background of these lands, you can visit our website at http://www.sle.ca.gov/Info/Land®Class.html and httD://www.slc.ca.izov/PublicTrust/PublicTrust.html. Sovereign lands belong to the people of the state and must be used for public trust consistent uses such as navigation, fishing, water -related commerce, recreation, swimming, and open space. 1'he state functions as the trustee to manage and protect these lands. Ihe Commission was created as the agency that carries out these duties. In some locations, the Legislature has granted the management of certain lands to a local agency- by way- of a legislative grant. the legislative grants contain additional conditions on the use of the granted lands. Sovereign lands are public property-. Private docks, piers, and moorings occupying these public lands impair the public use of these lands in exchange for a substantial benefit to the private upland owner. The California Constitution (_article XVI section fi i prohibits the state from making a gift of public property- to private persons. (herefore, the Commission charges rent based on fair market value. The rent is collected by the Commission and deposited into the general fund to compensate the people of the state. Tidelands within the Cite of Newport were granted to the Oty in 1919. http://www.stc.ca.gov/Programs/Grantees/NewportBeach.html The Citi- is required to manage their granted lands in compliance with the public trust and the terms of their granting statutes. Importantly, the Citi- is entrusted to manage these state owned lands and resources in trust for the benefit of all Californians without subjugation of statewide interests to the inclination of local interests and affairs. N'c port is required to receive fair market rent for the use of its granted tidelands. any revenues generated from the granted tidelands must be held in a separate fund and invested back into the granted tidelands. The local grantee enjoys the benefits reinvested revenues bring to the local economy, while the grant in trust is intended to ensure that the State's sovereign lands and all revenues generated by these lands are used only for authoricd Public 1 rust purposes of regional or statewide benefit. Any use of trust lands or revenues for non-trust purposes is a violation of the grantee's fiduciary duty- to the trust and its beneficiaries. "this includes use of the Citv's owns funds within the grant. Grantees are required to manage the State's public trust lands, assets, and revenues without subjugation of statewide interests, concerns, or benefits to the inclination of local or municipal affairs, initiatives or exercises. Local grantees of public trust lands are subject to the same fiduciary duties as ani- trustee. Public Resources Code section 6009.1 describes many of a grantee's fiduciary- duties, such as the duty to administer the trust soler in the interest of the beneficiaries and to not use or deal with trust property- for purposes unconnected with the trust. I hope this helps. Please let me know if you have further questions. Reid Boggiano Public band Management Specialist Fxternal _affairs Division California State bands Commission (916) 574-0450 From: Mike Glenn[mailto:michael.glenngdevion.com] Sent: Friday, April 28, 2017 5:38 PM To: Caldwell, Vicki@SLC <Vicki.CaldwelIL&,,slc.ca. gov> Subject: Question Hi Vicki! I am Mike Glenn, activist in Newport Beach. It is my understanding that State Lands administers the Huntington Harbor, but that Newport Harbor has been entrusted to the city of Newport for management. As State Lands, I know that you are limited in how to generate funds to pay for upkeep on the tidelands in general, so being in control of things like dock and mooring rates makes sense in Huntington Harbor. However, in Newport, because the city has so many additional resources at -hand for funding the Newport -Maintained Tidelands Fund, I am going to guess that State Lands doesn't particularly care how it gets funded, as long as it is funded. Is that accurate? Along those lines, if Newport decided to raise or lower their mooring and/or dock rates to whatever they wanted—so long as they were not cost -prohibitive (no $1,000,000/sqft), I am assuming that State Lands would be fine with that, as Newport is free to fund the maintenance of the harbor as it sees fit Is this—generally—accurate? Thanks so much, Mike 949.229.0096 4 Recieved After Agenda Printed July 25, 2017 Item No. 17 Subject: FW: NEWPORT BEACH CITY COUNCIL MEETING, AGENDA ITEM # 17 - JULY 25, 2017 Attachments: 150210 - BYC SLIP 7 - $1,043 BILL - .pdf; 170710 - BYC SLIP 7 - $1,455 BILL - .pdf; 170710 - BYC SLIP $48.50 -FT. ALL SLIPS NOTICE .pdf Leilani - Please make my email and these attachments part of the public record for this Meeting today, and also for Agenda Item # 17. Please also distributed to all City Council Members for this Meeting. Thank you, John John Heffernan 23 Corporate Plaza, # 200 Newport Beach, CA 92660 Office: (949) 640-4300 / Fax: 721-1140 Cell: (949) 500-2345 / Email: jhaoLcom (1/2016) -----Original Message ----- From: John Heffernan <jhffCcD_aol.com> To: dave.kiff <dave.kiff(c-),gmail. com>; mduffield <mduffield(Qduffyboats.com> Sent: Tue, Jul 25, 2017 12:38 pm Subject: NEWPORT BEACH CITY COUNCIL MEETING, AGENDA ITEM # 17 - JULY 25, 2017 Dear Dave & Duffy - These are my written comments to Agenda Item # 17 for tonight's City Council Meeting which I request be made part of public comments, be part of the public record for this Meeting and this Item # 17, and also be distributed to City Council Members for tonight's Meeting. My residence is located at 1971 Port Laurent, Newport Beach, CA 92660 I contend the matrix used for Large Commercial Marina Tideland rental payment to the City, as reflected in the Staff Report for this Item # 17 is wrong, specifically as it pertains to the fee proposed to be charged to the large Tidelands' Commercial Marinas listed in the Staff Report which pay rent to the City. The proposed City base rent rate is too low because it does not reflect the steep increases in slip fees being charged today in the City, or base rent should be more correctly be converted to a percentage rent so that the City properly is paid part of those slip fee increases. Also, for the same reason future rent increases for all Commercial Marinas should in no case be based on CPI, as described in the Staff Report - because slip fees are increasing far, far, faster than CPI which running currently around 2.00% per year. Also, the July 12, 2017 GHJ Appraisal which is an attachment in the Staff Report, is out of date and does not reflect the steep recent increases in slip fees in the City - versus the data used in that Appraisal. I have not done research on slip fees in other areas of the City and do not express an opinion on those, but I assert the appraisal report used as a basis for the Staff Report recommended rent increases needs to be updated to reflect current 7/2017 actual slip fees charged by the Commercial Marinas listed in the Appendix to the Report, and also included data of what those rates were, say, 30 months ago in 1/2015, for comparison and to show the most likely the steep percentage increases in those overall slip fees vs. the almost flat increase in CPI over that period. I am acutely aware of the steep slip fee increases charged by Cal Rec at the Balboa Yacht Club, located on Bayside Drive in the City, as follows: I have for years rented Slip # 7 at the Balboa Yacht Club. BYC charges me the same slip fee rate that Cal Rec. charges BYC for Slip # 7. 1. Attached is my BYC bill from 30 months ago, January 2015. The fee for my slip was $1,042.50 - $34.75/ft. for that 30' long slip. 2. Attached is my BYC bill from this month, July 2017. The fee for my slip is now $1,445 - $48.50/ft. for that 30' slip, which equals a $412,50 / 39.57% increase in 30 months! (And I believe there is only 1 vacancy in all the BYC Slips.) 3. Attached is the 6/30/2017 BYC notice to all BYC slip tenants about the pending Cal Rec slip fee increases - ranging from $43 to $86 per slip ft. (Which I contend the City's appraiser should also compare to other California Tideland based commercial marinas to assess if those rates are in, what wager, the top 20%, or even higher, of the whole State - again a factual basis for why the proposed City Tideland fee increases in this Staff Report are too low.) I strongly assert that the proposed Commercial Rental rates and increases proposed in the Staff Report: (a) do not properly reflect current slip fee rates charged by Cal Rec and other Commercial Marinas in the City paying Tideland Fees to the City; (b) are not fair market value as required under the Tideland Trust rules of the State of California under which the City manages and collects rents for those Tidelands; and (3) constitute the unlawful gift of a public benefit by the City to at least based on facts I know of, in this particular case, Cal Rec., and very possibly and likely to all other Commercial Marinas to which the proposed new Tidelands' rental schedule in the Staff Report applies Thank you, John Heffernan Former Mayor, City of Newport Beach, CA John Heffernan 1971 Port Laruent Newport Beach, CA 92660 Office: (949) 640-4300 / Fax: 721-1140 Cell: (949) 500-2345,/ Email: jhff(c-),aol.com (1/2016) Wi- Office of the Vice Commodore BALBOA YACHT CLUB To: All BYC Members and Non -Members From: Vice Commodore Bill Bloomberg --Date:_—. .30 -June 201-7 -- Re: BYC Marina Rental Rate Increase FSTABLISHFD 1922 N As you may be aware, the BYC Marina rental rates are indexed to the rental rates at the Bayside Marina just down the road. Please be advised that we have received an increase in our Marina rental rates from CalRec based on the rates they are now charging at Bayside. The new rates for the BYC Marina are shown in the schedule below. Rates are effective 01 August 2017 and will be reflected on your 30 June 2017 statement. This rate increase was anticipated in the 2017 BYC operating budget. Categories 30 ft Rates �— $43.0 $48.50/ftfr` slip - 35 ft slip $47.00-t 40 ft slip $55.50 - $66.50/ft 46 ft slip $70.50 /ft %%' 62 ft slip $75.50/ft 88 ft slip $86.00 /ft �1ti -- - ('492- 1801 Bayside Drive, Corona del Mar, California 92625 949.673.3515 www.BalboaYachtClub.com Page 1 of 1 - 07/10/2017 ' �pQ'�AC�l, a ~ CORONA OEL YAR CALIFORNIA BALBOA YACHT CLUB 1801 BAYSIDE DRIVE CORONA DEL MAR, CALIFORNIA 92625 TEL: 949.673.3515 FAX: 949.673.8937 Mr John Heffernan 23 Corporate Plaza, Ste. 200 Newport Beach, CA 92660 Please Detach Here And Return This Portion With Your Payment MEMBER NAME Mr John Heffernan MEMBER k H016 STATEMENT � • • • Balance Forward 1,604.65 Jun10/17 SLIP? Electricity 9.30 0.00 0.00 9.30 Jun27/17 460650 Ref. 0099460650 - Payment Rece 1,605.00 Jun29/17 298421 Dining Room Bar 5.00 0.75 0.45 6.20. Jun29/17 298421 Dining Room Food 22.00 3.30 1.96 27.26 Jun30/17 298602 Dining Room Bar 5.00 0.75 0.45 6.20 Jun30/17 298602 Dining Room Food 21.00 3.15 1.87 26.02 Jun30/17 31. Monthly Dues 260.00 _ 0:00. 0-:00; 260.00 0.00 0.00 0.00 0.00 20.00 1,455.00 Jun 0/17 046575 Slip Rental? M-07,ry 1,455.00 0.00 0.00 134.32 un �, 1 Please �X mail payments to•801 BaysidelDrive,__C rona del Mar, CA 92625 ACH Pa ticipants: ACH pa ments will be automatically\deducted on atm balboa -the -.20th o achtclub.c each month. m Statem nts are also avalilaYle onfine i . L: 1 mumv [on • 1, 931 .•62 7., 5 9: , 200.00 65.68 134.32 Jun30/17 CURRENT I OVER 30 DAYS OVER 6C DAYS OVER 9C DAYS • , 1 1/ 1 11 1 11 Club r mr 6s�$r/`t��dIj(q�tyare Not Deductible as c.nantaoie FContribut ons or Fe eral Income Tax urposes. Balance Due 1, 943. 95 BALANCE IS DUE UPON RECEIPT - THANK YOU BALBOA YACHT CLUB 1801 BAYSIDE DRIVE CORONA DEL MAR, CALIFORNIA 92625 TEL: (949) 673-3515 FAX: (949) 673-8937 Mr John Heffernan 23 Corporate Plaza, Ste. 200 Newport Beach, CA 92660 Please Detach Here And Return This Portion With Your Payment ` MEMBERNAME Mr John Heffernan MEMBER h0_6 DESCRIPTION• �� Balance Forward 1,368.34 Jan 9/15 235984 Dining Room Bar 5.00 0.75 0.46 6.21 Jan 9/15 235984 Dining Room Food 12.00 1.80 1.i0 14.90 Jan10/15 SLIP7 Electricity 24.80 0.00 0.00 24.80 Janl3/15 005159 Ref. 0000005159 - Payment Rece 1,370.00 Jan31/15 14 Monthly Dues 240.00 0.00 0.00 240.00 0.00 0.00 25.00 Jan3l./15 037270 Slip Rental - M 07� 1,042.50 0.00 0.00 1,042.50 Please mail payments to: T$0.1 Ba-yside Drive, Krona del M r, CA 92625 ACH Participants: ants: J ACH pa mentswill be automa >�cal-I,y•deducted on th_ 20th o each month. Statem nts are also available online �tr.bal oaya ltclub.c m STATEMENT — .1 111 K__/� E LY-VINW.'J ATE I?ALANCE 10 S?ENG 1 -O SNLNF) B)' 11 11 C�i2RE,' I OVER -cl: OVER 60 �'S OVER D1"S D.i � . 0 1 11 1 11 / 11 club cues, Assessments and Similar Payments are Not Deductible as Charitable Conftly s i,&c1l,al &P/25T 6"oses. 1 349 3 . 1, 351.75 BALANCE IS DUE UPON RECEIPT -THANK YOU