HomeMy WebLinkAbout06 - Balboa Yacht Basin Rental AdjustmentsITEM 6
TO: Members of the Newport Beach City Council
FROM: Tony Melum, Division of Harbor Resources
SUBJECT: Balboa Yacht Basin Rental Adjustments
RECOMMENDED Adopt Resolution 2001 -_ rescinding Resolution 2000 -77 and adjusting
ACTION: the slip, apartment, and garage rental rates at the Balboa Yacht Basin
BACKGROUND: In 1982, the City entered into a loan and operations contract with the State
Department of Boating in Waterways (DBW). DBW loaned the City $2.5
million to renovate the Balboa Yacht Basin. The City agreed to repay the
loan from gross revenues originating from fees and rentals charged to
users of the Balboa Yacht Basin.
The Balboa Yacht Basin has 172 slips that can accommodate boats from
31' to 75'. The Basin also has 34 garages offered for rental and three
apartments. In August 2001, the City's Harbor Resources Division moved
to the BYB and is now housed there. About 25 persons are on the waiting
list for slips at the BYB.
As part of the payment obligation, the City is required, as a condition of
the contract associated with the DBW loan, to complete the following:
"the Applicant shall each year conduct a survey of berthing charges which prevail in
the same market area as the project and shall transmit the results of the survey to the
Department by the 1st of April of each year. The Applicant shall establish berthing
charges which are reasonable and not exorbitant."
Over the last 10 years the rental rates have been adjusted as follows:
1991 Slips $12.25 /foot /month (all sizes)
Apartments $900.00 /month
Garages $90.00 /month
1995 Slips
$14.50 /foot /month (all sizes)
Apartments
$1,100.00 /month
Garages
$100.00 /month
1999 Slips
31' to 35' feet, $15.00 /foot /month
40' to 45' feet, $16.00 /foot /month
60 and above, $18.00 /foot /month
Apartments
$1,450.00 /month
Garages
$110.00 /month
2000 Slips 31' to 35' feet, $16.00 /foot /month
40' to 45' feet, $17.00 /foot /month
50 and above, $20.00 /foot /month
Apartments $1,500.00 /month
Garages $120.00 /month
The 2000 rates are the current rates charged to tenants at the Basin.
A survey of comparable marinas in Newport Harbor completed in
August 2001 (see Attachment B) indicates that rates range from
$11.00 /foot /month to as much as $30.75 /foot /month depending on
location and size of vessels. Essentially, all of the marinas in Newport
Harbor are at 100% occupancy. To calculate the 2001 rates, we used the
data from the survey and our own knowledge about "reasonable' rates in
the region.
We have also proposed adjusting rates for the 3 apartments and 34
garages at the Balboa Yacht Basin site. The new rates reflect a local
market survey.
Balboa Yacht Basin tenants have been notified of the recommended rate
increases. A letter has been sent to the Basin Yacht Club and notices have
been posted on the Basin's bulletin board.
ATTACHMENTS: Attachment A- Resolution 2001 -_
Attachment B - Marina Rate Comparisons Per Foot for the year 2001
Attachment A
RESOLUTION NO. 2001-
• RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH
RESCINDING RESOLUTION NO. 2000-77
AND ESTABLISHING
• REVISED SCHEDULE OF RATES FOR THE
BALBOA YACHT BASIN
WHEREAS, the City of Newport Beach owns, maintains and operates the Balboa Yacht
Basin located on Harbor Island; and
WHEREAS, the City of Newport Beach has renovated the Balboa Yacht Basin with
funds acquired from the State Department of Boating and Waterways; and
WHEREAS, the loan with the Department of Boating and Waterways requires the City
to periodically review berthing charges of public and privately owned boating facilities in the
general area of Newport Bay serving the same boating public and set rates at levels comparable
to those facilities that are reasonable and not exorbitant, and
WHEREAS, the City of Newport Beach has surveyed the berthing rates of other marinas
in Newport Harbor, now, therefore be it
RESOLVED by the City Council of the City of Newport Beach that the City of Newport
Beach sets the following rates which shall be effective on October 23, 2001, for Fiscal Year 2001-
02:
1. Slip rental rate shall be set as follows:
a) 31 to 35 foot slips = $17.00 per foot per month.
b) 40 to 45 foot slips = $18.00 per foot per month.
c) 50 foot slips and above= $22.00 per foot per month.
Monthly rental shall be calculated upon the appropriate rate times the vessel length
or slip length whichever is longer.
2. Slip tenants at the time of executing a rental agreement shall pay to the City both the
first and last month's rent based on the length of the boat or the slip (whichever is greater), plus
a $50.00 security fee.
3. Each slip or berthing space is individually metered for electricity. The tenant will be
responsible for any electrical usage at his rental slip. Electrical rates will be billed by the City at
the rate charged by Southern California Edison Company.
4. The detached garage storage spaces that are ancillary to the marina will be charged
at the rate of $200.00 per month.
5. The three apartments located on the Marina property will be billed at $1,600.00 per
month. Apartment tenants shall pay the City one month's rent in advance and the equivalent of
one month's rent as security deposit.
6. Resolution No. 2000 -77 is hereby rescinded, effective immediately.
ADOPTED this 23rd day of October 2001.
GAROLD B. ADAMS
Mayor of Newport Beach
ATTEST:
LAVONNE HARKLESS
City Clerk
ATTACHMENT B—
MARINA RATE COMPARISONS PER FOOT 2001
MARINAS
TOTAL SLIPS
TYPE RATE
PER FOOT
American Legion
50
Inside (30' max)
$11.00
Outside (25 -41')
$12.00
Balboa Marina
132
28 -38'
$19.30
40-49'
$21.50
Bay Shores
134
31'
$20.50
35'
$20.50
75'
$28.25
Bayside
98
31 -35'
$21.20
40-45'
$25.65
60'
$30.75
De Anza
225
31' -35'
$16.71
35' -39'
$17.76
40' -50'
$20.00
Lido Marina
85
Inside 35' -45'
$25.00
Outside 36' -56'
$30.00
Lido Yacht Anchorage
265
31'
$15.50
35'
$16.25
40'
$18.25
45'
$20.00
Newport Dunes
448
30'
$17.50
35'
$17.50
40'
$21.50