HomeMy WebLinkAbout03 - Amending Sections 17.60.010 (Public Trust Lands - General), 17.60.020 (Application for Pier/Mooring Permits or the Lease of Public Trust Lands), 17.60.040 (Mooring Permits), and 17.60.045 (Short -Term Mooring Licenses) - CorrespondenceDocusign Envelope ID: 5AEOOD95-9347-43E4-81D6-9BA3C8E7116C
STATE OF CALIFORNIA GAVIN NEWSOM, Governor
CALIFORNIA STATE LANDS EXECUTIVE OFFICE
100 Howe Avenue, Suite 100-South
COMMISSION Sacramento, CA 95825-8202
F." JENNIFER LUCCHESI, Executive Officer
916.574.1800
� f f _ TTY CA Relay Service: 711 or Phone 800.735.2922
..r r..a,� �'54-;x from Voice Phone 800.735.2929
or for Spanish 800.855.3000
July 22, 2024
File Ref.: G 09.02
SENT VIA ELECTRONIC MAIL
gleung@newportbeachca.gov
citycouncil@newportbeachca.gov
cityclerk@newportbeachca.gov
Grace K. Leung, City Manager
Honorable City Councilmembers
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Subject: Comment on Agenda Item 3: Ordinance No. 2024-15, City of Newport
Beach City Council Meeting, July 23, 2024
Dear City Manager Leung and City Councilmembers,
California State Lands Commission (Commission) staff requests that the
City Council postpone the second reading and adoption of Ordinance 2024-15,
scheduled for July 23, 2024. This postponement will allow Commission staff to
review the City's management of its mooring permits and residential pier leases
on granted state lands to ensure that the City is fulfilling its responsibilities as the
state's fiduciary.'
The Legislature granted the state's tide and submerged lands in Newport
Bay to the City of Newport Beach to manage on the state's behalf.2 The City's
legislative granting statutes, the common law Public Trust Doctrine, and the
California Constitution require the City to manage its granted lands for the
benefit of the statewide public, not for purely private or local interests. State
trustees are obligated to administer these lands fairly and equitably, without
discriminating among users and rates. The State Lands Commission is responsible
I Pub. Resources Code, §§ 6009, subd. (d); 6009.1, subd. (c).
2 The City's granting statute is Chapter 74, Statutes of 1978, as amended.
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Grace K. Leung, City Manager
Honorable City Councilmembers
July 22, 2024
Page 2
for overseeing the City's fulfillment of its duties to the State and the people of
California.3 The City's legislative grant expressly authorizes the State Lands
Commission to conduct formal inquiries into whether the City has complied with
its trust grant obligations and directs the Commission to work with the Attorney
General's Office and report to the Legislature as needed to address violations of
the trust grant.4
While Commission staff recognize the City's efforts to align mooring rates
with fair market value, the recent decision to grandfather existing rates, coupled
with the failure to reassess residential pier rates, underscores the need for a
comprehensive evaluation to ensure that all rates reflect fair market value
without discrimination in how rates are applied to specific users. As members of
the public have repeatedly pointed out, there are inconsistencies in the
magnitude and timing of rate adjustments among mooring permits and
residential pier leases. In particular, the residential pier lease rates appear to be
substantially below fair market value. Further, the methodology used to establish
those rates may constitute an unconstitutional gift of public funds and certainly
appears to raise issues of discrimination in rates between residential pier leases
and mooring permits inconsistent with the law.
Clarification about these disparities is essential to prevent inequity and
ensure proper management of the state's tidelands. It is critical that the City
charge fair market rates for the use of all tidelands and submerged lands to
avoid unconstitutional gifts of public property.5 Staff is concerned that the City is
not comprehensively reviewing all user categories to ensure equity. Addressing
both pier lease rates and mooring rates, at the same time, would guarantee
that all rates are fair, reflecting a balanced consideration of the uses and
impacts across Newport Bay.
Commission staff agrees with the City's effort to end the illegal private
profiteering from mooring transfers. A 2006-2007 Orange County Grand Jury
Report found that there is a loophole that allows a private mooring transfer after
a boat sale, allowing private parties to commodify public assets in direct
violation of the core tenants of the Public Trust Doctrine. Commission staff
3 Pub. Resources Code, §§ 6009, subd. (c); 6009.1, subd. (a); 6301.
4 Chapter 74, Statutes of 1978, as amended, § 1, subds. (n)-(q).
5 Cal. Const., art. XVI, § 6.
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Grace K. Leung, City Manager
Honorable City Councilmembers
July 22, 2024
Page 3
recommends the City end the private transfers as part of a comprehensive
review of mooring permits and residential pier leases.
Commission staff believes it is prudent for the City to delay the second
reading of Ordinance 2024-15 until staff's review of the City's fiduciary
management of its mooring permits and residential pier leases is complete. This
review is expected to conclude by the end of this year, and the conclusions
and any recommendations will be presented for the Commission's
consideration. As part of this review, we will follow up with an engagement letter
that will include additional details of our initial records request. We will also be
coordinating with Coastal Commission staff as they review the City's mooring
permit and pier lease programs for consistency with the Coastal Act.
Commission staff looks forward to working with the City to collaboratively
address and resolve these issues.
Sincerely,
DocuSign�edby:�
A8DE3BBAE92D437...
JENNIFER LUCCHESI
Executive Officer
cc: Sahar Durali, Deputy Attorney General
Dr. Kate Huckelbridge, Executive Director, California Coastal Commission
Seth Blackmon, Chief Counsel, State Lands Commission
City of Newport Beach Harbor Commission
From: City Clerk's Office
Sent: July 23, 2024 3:11 PM
To: Mulvey, Jennifer
Subject: FW: mooring fees
From: Biddle, Jennifer <JBiddle@newportbeachca.gov>
Sent: Tuesday, July 23, 2024 3:11:04 PM (UTC-08:00) Pacific Time (US & Canada)
To: City Clerk's Office
Subject: FW: mooring fees
-----Original Message -----
From: william allen <wballen2010@att.net>
Sent: July 23, 2024 1:50 PM
To: Dept - City Council<CityCouncil@newportbeachca.gov>; Dept - City Council
<CityCounciI@newportbeachca.gov>
Subject: mooring fees
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To All council
I cant make the meeting tonight, so I'm expressing my anger through this email.
Why is it, every two years, we have to come to grips and the mental anguish over the city trying to take
our mooring away or rising the cost so high that the average boating family can't afford the rent.
In the interest of transparency and common sense, I ask that the council enshrine these protections for
the current mooring permitters my question is, Is the city going to pay me the value of my mooring when
they take them over in 4 years.
what happen to keeping boating cost affordable for the common boating.
Is the city trying to take over all the mooring because a large portion of the permitters are from out of
the city and that the city doesn't care about the Newport beach residence permitters. Not all of the
local permitters can afford to have a dock please in you wisdom turn this agenda topic down.
Thanks
Bill Allen
mooring F-15