HomeMy WebLinkAbout03 - Revising Certain Rents Within the Schedule of Rents, Fines and FeesQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
July 9, 2024
Agenda Item No. 3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason AI -Imam, Finance Director/Treasurer - 949-644-3126,
jalimam@newportbeachca.gov
PREPARED BY: Abigail Marin, Budget Analyst - 949-644-3042,
amarin@newportbeachca.gov
TITLE: Resolution No. 2024-44: Revising Certain Rents Within the Schedule
of Rents, Fines and Fees
ABSTRACT:
The Fiscal Year 2023-24 Schedule of Rents, Fines and Fees (SRFF) was adopted by the
City Council on April 23, 2024 and included certain rental rates that inadvertently did not
incorporate the correct inflationary adjustment. The rental rates for Residential Piers
should have received an inflationary adjustment on the rates in effect during Fiscal Year
2023-24. Instead, the inflationary adjustment was applied to the rates in effect during
Fiscal Year 2022-23, effectively resulting in a decrease to the rates. In addition, certain
rental rates for apartments, garage rentals and slip rentals at Balboa Yacht Basin
erroneously reflected rates from a prior year. The proposed corrections to these rental
rates are reflected in the exhibit, which is attached to the resolution presented for City
Council consideration.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Adopt Resolution No. 2024-44, A Resolution of the City of Newport Beach, California,
Revising Certain Rents Within the Schedule of Rents, Fine and Fees.
DISCUSSION:
The exhibit attached to Resolution No. 2024-44, presented for City Council consideration,
depicts proposed corrections to rental rates that were adopted in April 2024. Certain rental
rates on the adopted SRFF did not correctly incorporate the inflationary adjustment for
rental rates that was set to become effective on July 1, 2024, which should have been
based on an inflationary adjustment applied to the rate in effect during Fiscal Year
2023-24. Instead, the inflationary adjustment was applied to a rate that was in effect
during Fiscal Year 2022-23, effectively resulting in a decrease to the rates for
FY 2024-25.
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Resolution No. 2024-44: Revising Certain Rents
Within the Schedule of Rents, Fines and Fees
July 9, 2024
Page 2
Pursuant to Resolution No. 2015-10, residential piers are adjusted by the change in CPI
or two percent (2%), whichever is less and rounded to the nearest cent.
Similarly, the rates for garages, apartments and slip rentals at Balboa Yacht Basin were
inadvertently set to a prior year. Pursuant to Resolution No. 2010-134, slip rates at the
Balboa Yacht Basin shall be set at 100% of the average of the Newport Harbor Marina
Index, comprised of the low to moderately prices marinas in Newport Harbor, while rates
for garages and apartments shall be adjusted based on changes in the
Consumer Price Index (CPI). The proposed resolution correctly sets these rates for the
current SRFF.
The proposed corrections will be reflected in the comprehensive SRFF should the
proposed resolution presented for City Council consideration be adopted. A comparison
of the erroneous rates that were approved in April 2024 are included in Attachment B,
which also includes the proposed rates and the rates that were in effect on July 1, 2023.
FISCAL IMPACT:
The revenue associated with the rents proposed for adjustment are deposited into the
Tidelands Operating and Tidelands Capital funds. The Fiscal Year 2024-25
Adopted Budget included increases associated with these rental increases, therefore no
budget amendment is needed.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Resolution No. 2024-44
Attachment B — Comparison of SRFF Rates
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ATTACHMENT A
RESOLUTION NO. 2024- 44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, CORRECTING
THE RENTAL RATE FOR BALBOA YACHT BASIN
APARTMENTS, GARAGE RENTALS, AND SLIP
RENTALS AS WELL AS RESIDENTIAL PIERS WITHIN
THE SCHEDULE OF RENTS, FINES AND FEES
WHEREAS, pursuant to the 1978 Beacon Bay Bill, as amended, ("Beacon Bay
Bill") the City of Newport Beach ("City") acts on behalf of the State of California as the
trustee of tidelands located within the City's limits, including Newport Harbor;
WHEREAS, the Beacon Bay Bill and Chapter 17.60 of the Newport Beach
Municipal Code ("NBMC") allow the City to issue permits and charge rent for property
upon tidelands;
WHEREAS, the City Council adjusted certain rents for Balboa Yacht Basin
apartments, garages and slip rentals pursuant to Resolution No. 2010-134 and residential
piers pursuant to Resolution No. 2015-10, which have been adjusted for inflation since
then; and
WHEREAS, the City Council adopted Resolution No. 2024-29 on April 23, 2024,
which amended the FY 2024-25 Schedule of Rents, Fines and Fees ("SRFF") including
certain rents without adjusting for inflation and the City Council desires to correct the
SRFF.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby amend the SRFF, as set forth in
Exhibit 1, which is attached hereto and incorporated herein by reference for Balboa Yacht
Basin apartments, garage rentals, and slip rentals as well as residential piers.
Section 2: The portion of the SRFF adopted pursuant to Resolution No. 2024-
29 related to rent for Balboa Yacht Basin apartments, garage rentals, and slip rentals as
well as residential piers that is in conflict herewith is hereby repealed and of no further
force or effect.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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Resolution No. 2024-
Page 2 of 2
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 9th day of July, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OF ICE
C
Aa on C. Harp
City Attorney
Attachment: Exhibit 1 — Amendment to FY 2024-25 SRFF
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Exhibit 1
City of Newport Beach - Schedule of Rents, Fines and Fees
COMMUNITY DEVELOPMENT - REAL PROPERTY
Balboa Yacht Basin Slip/Garage/Apartment Rentals
1 Apartments (Nos. 5 & 7)
2 Garage Rentals
3 Slip Rentals
a) 20' Slip
b) 25' Slip
c) 31' Slip
d) 32' Slip
e) 34' Slip
f) 35' Slip
g) 37' Slip
h) 40' Slip
i) 45' Slip
j) 50' Slip
k) 60' Slip
1) 75' Slip
Subject
Note to CPI
$3,353.81 $3,488.97
$444.81 $462.74 per month
$32.23
$34.75
perfoot
[b]
[c] No
per month
$32.38
$37.04
perfoot
[b]
[c] No
per month
$37.29
$40.95
perfoot
[b]
[c] No
per month
$40.49
$44.05
perfoot
[b]
[c] No
per month
$41.02
$45.46
perfoot
[b]
[c] No
per month
$42.59
$47.54
perfoot
[b]
[c] No
per month
$44.34
$49.63
perfoot
[b]
[c] No
per month
$50.09
$52.32
perfoot
[b]
[c] No
per month
$51.27
$54.24
perfoot
[b]
[c] No
per month
$60.59
$59.17
perfoot
[b]
[c] No
per month
$70.65
$72.07
perfoot
[b]
[c] No
per month
$80.95
$83.05
perfoot
[b]
[c] No
per month
[a] CPI adjustments occur separately.
[b] Rate charged shall be the greater of the slip or the boat. If the boat is longer than the slip it is in, the charge shall be based on the slip price
plus the extra lineal feet of the boat, at that same slip rate.
[c] Based on Resolution 2010-134.
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City of Newport Beach - Schedule of Rents, Fines and Fees
COMMUNITY DEVELOPMENT - REAL PROPERTY
1 Piers
a) Residential
[a] Based on Resolution 2015-10.
Subject
Note I to CPI
$0.56 $0.57 per sq ft [a] No
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ATTACHMENT B
City of Newport Beach - Schedule of Rents, Fines and Fees - Amendment
COMMUNITY DEVELOPMENT - REAL ROPERTY
Balboa Yacht Basin Slip/Garage/Apartment Rentals
1 Apartments $3,353.81 $2,918.31 $3,488.97 per month [b] [c]
2 Garage Rentals $444.81 $387.05 $462.74 per month [b] [c]
3
Slip Rentals
a) 20' Slip
$32.23
$25.82
$34.75
b) 25' Slip
$32.38
$26.78
$37.04
c) 31' Slip
$37.29
$29.35
$40.95
d) 32' Slip
$40.49
$29.84
$44.05
e) 34' Slip
$41.02
$34.14
$45.46
f) 35' Slip
$42.59
$34.14
$47.54
g) 37' Slip
$44.34
$34.24
$49.63
h) 40' Slip
$50.09
$37.75
$52.32
i) 45' Slip
$51.27
$40.47
$54.24
j) 50' Slip
$60.59
$46.84
$59.17
k) 60' Slip
$70.65
$51.69
$72.07
l) 75' Slip
$80.95
$51.79
$83.05
[a]
CPI adjustments occur separately.
[b]
Rate charged shall be the greater of the slip or the boat. If the boat is longer than the slip
it is in, the charge shall
be based on the slip price
plus the extra lineal feet of the boat, at that same slip rate.
[c]
Based on Resolution 2010-134
PUBLIC
WORKS - HARBOR RESOURCES
1
Piers
a) Residential
$0.56
$0.55
$0.57
[d]
Based on Resolution 2015-10
Yes
Yes
perfoot
ner
ner
ner
ner
ner
ner
ner
ner
ner
ner
ner
ner
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
perfoot
[b] [c]
No
month
per sq ft [d] Yes
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