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HomeMy WebLinkAboutF-2a - Amendment to Loan Agreement/Balboa Yacht Basin ReconstructionCITY OF NEWPORT BEACH Marine Department AGENDA ITEM NO. F2A BY THE CITY COUNCIL August 13,1984 CITY OF NEWPORT BENCH AUG 13 1984 TO: MAYOR AND CITY COUNCIL fhko FROM: Marine Department SUBJECT: AMENDMENT TO LOAN AGREEMENT/BALBOA YACHT BASIN RECONSTRUCTION Recommendation: If desired, adopt Resolution No. authorizing the Mayor and City Clerk to execute a Resolution accepting the terms and conditions of the attached "First Amendment to Contract". Background: The State of California Boating and Waterways Commission met on July 20, 1984 and approved and additional $800,000 loan to the City of Newport Beach for reconstruction of the Balboa Yacht Basin Marina. The application for a loan supplement to the state was approved by the City Council one year ago on August 8, 1984. The increase was necessitated by primarily two factors: (1).normal inflation, and(2) funding for some of the associated upland work such as restrooms, paving, and comprehensive utility refurbishments for power,water, and sewers. The project is essentially the same as that described in the original 1982-83 California Boating Loan Agreement. The major changes are shoreside and are the result of refinements which commonly occur during the design of a project. The restroom building, apartment building and yacht broker building at the far east end of the marina basin will be removed and the space utilized for parking and an expanded boat repair yard. The restroom and yacht broker facilities will be provided for in a new two-story building to be constructed on the north side of the basin in a space currently occupied by six garage stalls. Discussion - The original loan agreement for 2.5 million dollars was executed by the Mayor on November 24,1982. The City Council is now being requested to authorize the Mayor to execute an amendment to that contract for the additional $800,000 needed to construct the project as engineered. The plans and specifications for this project are now 100% completed and the project will be advertised for bids upon final approval of this contract. In summary, the amended co.ntract would change the original contract No. 82-21-82 in the following ways: (1) Reconstruction loan committment from the State would be increased from 2.5 million to 3.3 million. (2) Loan repayment schedule would be revised to begin.on August 1,1985 for the first $2.5 million and a repayment schedule for the remaining $800,000 would begin August 1, 1988. (3) The City would establish a berthing rate of at least $7.50 per vessel foot or berth length per month, and annually adjust this rate based on the Consumer Price Index. (4) The City would annually survey berthing rates charged in the same market areas as Balboa Yacht Basin and provide these figures to Cal Boating. Attarhmant- (1) First Amendment to Contract Balboa Marina $800,000 Incremental Loan DAVID HARSHBARGER Marine Director DH:el