HomeMy WebLinkAboutM2009-0020STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY ARNOLD SCHWARZENEGGER, Govemor
CALIFORNIA COASTAL COMMISSION
South Coast Area Office
200 Oceangate, Suite 1000
Long Beach, CA 90802-4302
(562) 590-5071
NOTICE OF VIOLATION OF THE CALIFORNIA COASTAL ACT
REGULAR AND CERTIFIED MAIL
June 2, 2009
American Legion Post 291
Attn: Steven Spriggs, Commander
215 E. 15 th Street
Newport Beach, CA 92663
Violation File Number: V- 5-09-011
Property Location: 215 E. 15th Street, Newport Beach,
County of Orange,
Assessor's Parcel Number 0047-222-008
Unpermitted Development: Posting of Signs Restricting Public Access
Dear Mr. Spriggs:
The California Coastal Act I was enacted by the State Legislature in 1976 to provide long-term
protection of California's 1,1007Mile coastline through implementation of a comprehensive
planning and regulatory program designed to manage conservation and development of coastal
resources. The California Coastal Commission ("Commission") is the state agency created by,
and charged with administering, the Coastal Act of 1976. In making its permit and land use
planning decisions, the Commission carries out Coastal Act policies, which, amongst other goals,
seek to protect and restore sensitive habitats; protect natural landforms; protect scenic landscapes
and views of the sea; protect against loss of life and property from coastal. hazards; and provide
maximum public access to the sea, including public access and use of the sandy beach on your
leasehold property.
'Our staff has confirmed that development undertaken on your leasehold property at 215 E. 15th
Street, Newport Beach (the property), including placement of private property signs in a corridor
between a boat storage area and dock, does not fully comply with the terms and conditions of
Coastal Development Permit (CDP) 5-07-169. CDP -5-07-169 was previously approved by the
Commission and issued to the City of Newport Beach, the owner of the property on October 10,
2007, for the removal and replacement of an existing single -finger dock with a pump out facility
on the property. Included in the terms of CDP 5-07-169 were provisions for maximizing public
access to and use of the sandy beach on the property, which is located in the coastal zone. A
copy of the coastal development permit is enclosed for reference.
1 The Coastal Act is codified in sections 30000 to 30900 of the California Public Resources Code. All fiirther
section references are to that code, and thus, to the Coastal Act, unless otherwise indicated.
Section 30600 (a) of the Coastal Act requires that any person wishing to perform or undertake
development in the coastal zone obtain a coastal development pen -nit, in addition to any other
permit required by law. The term development is defined by Section 30106 of the Coastal Act
as:
"Development" means, on land, in or under water, the placement or erection of any solid material or
structure; discharge or disposal of any dredged material or any gaseous, liquid, solid, or thermal waste;
grading, removing, dredging, mining, or extraction of any materials; change in the density or intensity of
the use of land, including, but not limited to, subdivision pursuant to the Subdivision Map Act (commencing
with Section 66410 of the Government Code), and any other division of land, including lot splits, except
where the land division is brought about in connection with the purchase of such land by a public agency
for public recreational use; change in the intensity of water, or of access thereto; construction,
reconstruction, demolition, or alteration of the size of any structure, including any facility of any private,
public, or municipal utility; and the removal or harvest of major vegetation other than for agricultural
purposes, kelp harvesting, and timber operations....
The posting of private property signs on the property constitutes development under the Coastal
Act * * Any development activity conducted in the coastal zone without a valid coastal
development permit constitutes a violation of the Coastal Act.
Additionally, the posting of private property signs, particularly in their present location within a
narrow corridor that provides the only access to a public sandy beach, obstructs public access to
sandy public beach and public tidelands on the property in violation of the Coastal Act's public
access policies and the City of Newport Beach's Land Use Plan. CDP 5-07-169 allowed for
limited fencing to secure existing facilities within your leasehold property, provided that the
fencing did not interfere with public access and use of the sandy beach.
In most cases, violations involving unpermitted development may be resolved through the
coastal development permit process by applying for a coastal permit to authorize removal of the
unpennitted development or by obtaining a coastal development permit authorizing the
development after -the -fact. In this case, staff cannot recommend approval of the private
property signs in this location because they do not conform with the public access policies of
Chapter 3 of the.Coastal Act. Therefore, in order to resolve this matter in a timely manner, we
are requesting that you remove the private property -signs. Please contact ine no later than June
16, 2009, regarding how you intend to resolve this violation.
Although we would prefer to resolve this matter through the coastal development permit process,
please be aware that Coastal Act Section 30809 states that if the Executive Director of the
Commission determines that any person has undertaken, or is threatening to undertake, any
activity that requires a permit from the Coastal Commission without first securing a permit, the
Executive Director may issue an order directing that person to cease and desist. Coastal Act
Sections 30810 and 30811 also authorize the Coastal Commission to issue a cease and desist
order and/or order restoration of a site if impermitted development is inconsistent with the
policies of the Coastal Act and is causing continuing resource damage. A cease and desist order
may be subject to any terms and conditions that are necessary to ensure compliance with the
Coastal Act. A violation of a cease and desist or restoration order can result in civil fines of up to
$6,000 for each day in which the violation persists.
In addition, we note that Sections 30803 and 30805 of the Coastal Act authorize the Commission
to initiate litigation to seek injunctive relief and an award of civil fines in response to any
violation of the Coastal Act. Section 30820(a)(1) of the Coastal Act provides that any person
who performs development in violation of any provision of the Coastal Act may be subject to a
penalty amount that shall not exceed $30,000 and shall not be less than $500. Coastal Act
section 30820(b) states that, in addition to any other penalties, any person who "knowingly and
intentionally" performs or undertakes any development in violation of the Coastal Act can be
subject to a civil penalty of not less than $ 1,000 nor more than $15,000 for each day in which the
violation persists.
Finally, the Executive Director is authorized, after providing notice and the opportunity for a
hearing before the Commission as provided for in Section 30812 of the Coastal Act, to record a
Notice of Violation against your property.
Thank you for your attention to this matter. We look forward to working with you to resolve this
matter. If you have any questions regarding this letter or the pending enforcement case, please
feel free to contact me at 562-590-5071.
Sincerely,
Andrew Willis
District Enforcement Analyst
cc: Chris Miller, City of Newport Beach
Patrick Veesart, Southern California Enforcement Supervisor, CCC
Teresa Henry, District Manager, CCC
Karl Schwing, Orange County Planning Manager, CCC
Enclosures: Coastal Development Permit CDP 5-07-169
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No.
January 8, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Harbor Resources Division (City Manager's Office)
Chris Miller, (949) 644-3043
cmiller(a)city.newport-beach.ca.us
SUBJECT: American Legion Pump Out Facility.
ISSUE:
Should the City Council reconsider the public pump out facility reconstruction project at the
American Legion because of the issue concerning their eastern property line fence removal as
directed by the Coastal Commission.
RECOMMENDATION:
The City Council may consider one of the following options.
1 Direct staff to proceed with the project as designed and as approved by the Coastal
Commission who ordered the fence be removed.
2. Direct staff to abandon the current project and consider alternate locations in the harbor.
DISCUSSION:
In December 2004, City staff determined that the public pump out facility located on the
American Legion leased property was unsafe for public use and it was subsequently closed. As
a result, the pump out station was temporarily relocated about 30 feet away to the 15 th Street
public dock. (See attached.) Shortly after this relocation, the public demanded the original
pump out station at the American Legion be restored because the location at the 15 th Street
public pier was inadequate for the following reasons: 1) It is difficult to dock a vessel with the
prevailing winds, and 2) There are conflicts with the other users of the dock (fishermen, other
smaller boaters etc ... ) who often compete to use the front side of the dock. The City
responded by applying for a Department of Boating and Waterways grant for $65,000 to rebuild
the dock and pump out facility. The City also contributed $15,000 toward the facility. On
American Legion Pump Out Facility
January 8, 2008
Page 2
September 14, 2005 the Harbor Commission recommended the grant be considered by the City
Council who approved the grant on September 27, 2005. The grant expiration date has been
extended twice and will expire on June 30, 2008.
During the agency approval process this past fall, the Coastal Commission was very concerned
with the existing chain link fence that extends down the eastern side of the property line next to
the proposed pier. City staff spent weeks negotiating a solution so the fence could remain, but
ultimately, the Coastal Commission prevailed and said that they would not approve the project
unless the fence were removed and not replaced. The basis for this stipulation is the fence
impedes public access to the beach in front of the American Legion which are public tidelands
and are not protected under the lease between the City and Legion. Because this project is
extremely important to the boating community and towards our water quality efforts in the
harbor, staff agreed with Coastal's recommendation and modified the plans to remove the
fence. However, the American Legion did not agree with Coastal Commission and they voiced
their concerns at length during the hearing in October. Ultimately, the Coastal Commission
unanimously approved the project without a fence.
The American Legion contends the fence is instrumental to the security and safety of their
facility. As stated in a recent letter to the City Manager and Council Members:
"The Legion is especially opposed to removal of any fencing on Legion leasehold property, since it is
vital to the protection of Legion members and their property and is part of the leased property. To
safeguard property and safety of the Legion as well as that of its members and guests, and to ensure
compliance with alcohol licensing laws, it is essential thatfencing remain along the eastern leasehold
property line. Removal of the fence would have a profoundly harmful impact on property physical
security andproperty usage by the Legion by resulting in a high risk of trespass and encroachment on the
leased property and adversely affecting Legion operations and activities on the leased property. The
Legion has small boats stored in this area, and an outdoor patio which is used extensively for
entertaining and dining (including bar service) is in the same vicinity. In addition, there are exposed
utilities which could be hazards to pedestrian safety. Without the securityfence, free public access in that
immediate area of the Legion leaseholdproperty could threaten the well-being and safety of members and
guests on the patio as well as result in possible damage or loss of valuable property and risk violation of
alcohol licensing laws. "
Harbor Resources feels there are only two alternatives to consider. They are:
1 . Proceed with the project as planned and remove the fence. Staff and the Legion have
unsuccessfully tried to negotiate with Coastal over the fence issue for several weeks. Most of the
agency permits have been secured and the Council approved contractor (Swift Slip) is ready to
begin construction. Our Department of Boating and Waterways grant expires in June 2008, so we
will have no problem satisfying this time constraint.
2. Abandon the site as a plausible location for a pump out facility and consider other sites in the
harbor. The Legion has suggested building the pier on public beach at 15t" Street but this area
presents many challenges as a suitable location. 1) It would directly conflict with the public's use
of the beach and waterways on the west side of the public pier. Public outreach would be
essential. 2) Both Harbor Commission and Coastal Commission approvals are necessary. This
process, along with public outreach, would almost guarantee the project would not be approved
by the June 30, 2008 deadline for our grant money. 3) The grant would expire and the City
would need to reapply.
American Legion Pump Out Facility
January 8, 2008
Page 3
In addition, if the proposed site were abandoned, the American Legion, at its own expense, would
be required to install a publicly available pump out facility elsewhere on their property per the
Regional Board Order No. 88-93. The City's current proposal satisfies this Order at no cost to
the Legion.
American Legion Pump Out Facility
January 8, 2008
Page 4
DISCUSSION:
ENVIRONMENTAL REVIEW:
The City Council's approval of this item does not require environmental review.
PUBLIC NOTICE:
This agenda item has been noticed according to the Ralph M Brown Act (72 hours in advance of
the public meetings at which the City Council considers the item).
Prepared by:
Chris Miller
Harbor Resources Supervisor
Attachments: Aerial Photo
Approved Plans
Submitted by:
Dave Kiff
Assistant City Manager
American Legion Pump Out Facility
January 8, 2008
Page 5
Aerial Photo
Demo Plan
American Legion Pump Out Facility
January 8, 2008
Page 6
"Remove
Existing
Fence and Not
Replaced"
American Legion Pump Out Facility
January 8, 2008
Page 7
Approved Plan
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From: Tseng, Evelyn
Sent: Friday, November 02, 2007 2:51 PM
To: Kiff, Dave; Rossmiller, Tom; Miller, Chris
Cc: Everroad, Glen
Subject: FW: American Legion Pumpout Dock
Er... one more thing. Section 18 provides that lessee shall not take any action that would cause
City to be in violation of any provisions of the grant from the State to the City. If the pumpout
facility is related to the grant, then they need to remove the fencing as requested.
From:
Tseng, Evelyn
Sent:
Friday, November 02, 2007 2:30 PM
To:
Kiff, Dave; Rossmiller, Tom; Miller, Chris
Cc:
Everroad, Glen
Subject:
RE: American Legion Pumpout Dock
Hi everyone --
The only thing I saw in the lease expressly describing fencing would be Section 10. 1, which
requires the tenant to maintain the fencing. They could argue that the removal of fencing
interferes with their obligation to maintain, and while it would be sort of fun to hear that argument,
I doubt they'll use it.
Because there is no other express provision in the agreement regarding this issue (that I could
find), the only argument I can think of on their end is that we'd be breaching the implied covenant
of quiet enjoyment. This is one of those things, like killer bees, that I've always heard about, but
never actually encountered. If that is their argument, then a little time and research will probably
need to be done -- preferably by actual active lawyers with diplomas on their walls and easy
access to lexis/nexis.
It'd be a whole lot easier if we tell them that we don't believe there is a breach here, and if they
believe there is one, to stop being coy about it and just tell us where the heck the breach is
(because the resident income contract administrator is too dim to figure it out -- well, actually, you
can leave this part out.) Also, if the CDP is in conjunction with the Redevelopment of the
Adjoining Property (see the agreement for the definition), then, as Tom pointed out below, they're
in breach for not cooperating with us under Section 6.2. And then, add Dave's signature Nyah,
Nyah, Nyah.
Hope this helps. Let me know if there's any additional questions I can try to fake an answer to.
E
From: Kiff, Dave
Sent: Friday, November 02, 2007 12:10 PM
To: Rossmiller, Tom; Miller, Chris; Tseng, Evelyn
Subject: FW: American Legion Pumpout Dock
What section of the Lease do they think this violates? Let's have Evelyn take a look.
Dave
From:
Rossmiller, Tom
Sent:
Friday, November 02, 2007 11:46 AM
To:
lOff, Dave
Cc:
Miller, Chris
Subject:
American Legion Pumpout Dock
Hi Dave:
Chris and I met with Jon Reynolds (Commodore of the American Legion Yacht
Club) and Carter Ford yesterday regarding our proposed reconstruction of the
American Legion pumpout dock. As you know, the Coastal Commission has
issued a NOI for our CDP and one of the special conditions to the CDP is to
revise our plans and show on the plans removal of the Legion's fence between
15th Street public beach and the Legion's leased portion of the beach. The
bottom line from the meeting was that the Legion claims that removal of the
fence violates the terms of the lease. They claim that they would be willing to
remove a portion of the fence between the water line and the bulkhead line (the
bulkhead line is about 30 feet beyond their building out on to the beach). We
proposed this to Coastal Commission staff and it was rejected.
I suggested that they have a short period of time (about two weeks) to work out
an acceptable fencing scheme with the Commission before we move forward
with the project. I also informed them that if they didn't work out an acceptable
fence scheme with the Commission then we would present the following two
alternatives to the City Manager with input from the City Attorney:
Continue on with construction of the project when all permits were
finalized (we think within a month) to meet the terms of the DBAW
grant and take our chances with a potential lease violation lawsuit.
Stop the project, tell DBAW that we won't utilize the grant, demolish
the existing unsafe pumpout dock and pier and inform CRWQCB-SAR
that the Legion needs to meet the conditions of the pumpout order for
Newport Bay. The City may consider starting over again with building
a pumpout in another City location that would serve the moorings in
this part of the harbor but it would take several years of budgeting,
planning, design, permit acquisition and construction effort.
<< File: American Legion lease.doc >>
The way I read the lease is that they need to cooperate with us in permit
compliance stuff, etc. I hate to bother you and /or Robin with yet another harbor
issue. Do you think we are on the right track.
Thanks,
Tom
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WORKSHEET FOR BUILDING / FIRE PERMIT APPLIc&A%OR RESOURCES DIV.
CITY OF NEWPORT BEACH
CITY OF NEWPORT BEACH
BUILDING DEPARTMENT
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rut mzxDiuq__appii(;auan w.4fiu4
Monday 19 November 2007
Mi. Homer Bludau
City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach,,CA 92663
Dear Homer.
The American Lecion
C
NEWPORT HARBOR POST 291
215 15th Street
Newport Beach, CA 92663
7,14-673-5070
American Legion Post 291 is deeply concerned about the possibility of attempted removal of our
fencing from our Legion leasehold property. The prospective removal and replacement of the old
pump out facility on and near the Legion leasehold property, under the conditional approval by the
California Coastal Conunission of the permit application submitted- by the City of Newport Beach
Harbor Resources Division, has the potential of creating,serious security risks to the Legion and to the.
public. The old pump out facility is composed of a pier, a gangway, and a dock float. Much of the
pier portion of the pump out facility resides on the Legion leasehold property, next to and just west of
an existing and critically�irnportant chain link,fence running along the eastern leasehold property line.
The fence is not attached anywhere to the existing pump. out facility. The existing fence has served
both the Legion and the Newport Beach community well for at least 38 years. Not only is it
instrumental in providing physical security for the Legion leasehold property, it also enables a measure
of public safety near the narrow channel into the Legion marina and its frequent boat traffic.
The Legion is especially opposed to removal of any fencing on Legion leasehold property, since it is
vital to the protection of Legion members and their property and is part of the leased property. To
safeguard property and safety of the Legion as well as that of its members and guests, and to ensure
compliance with alcohol licensing laws, it is essential that fencing remain along the eastern leasehold
property line. Removal of the fence would have a profoundly harmful impact on property physical
security and property usage by the Legion by resulting in a high risk of trespass and encroachment on
the leased property and adversely affecting Legion operations and activities on the leased property.
The Legion has small boats stored in this area, and an outdoor patio which is used extensively for
entertaining and dining (including bar service) is in the same vicinity. In addition, there are exposed
utilities which could be hazards to pedestrian safety. Without the security fence, free public access in
that immediate area of the Legion leasehold property could threaten the well-being and safety of
members and g uests� on'the patio, as well as,result inpossible damage or loss of valuable property and
riskv'iolation of 'alcohol licensing laws.,.
a
The Legion fully supports clean water programs for Newport Harbor. The replacement�of the existing
pump out facility with one which will better facilitate and encourage boaters to use it should be a
significant improvement. The City's Harbor Resources Division is required to submit a revised project
plan to the Commission Staff before it can receive final approval of the permit. If the required revised
project plan were to show the removal of all of the fence — including that part on the Legion leasehold
property — it would be highly misleading to the Coastal Commission, since there's no authority to do
so and would. appear to violate the terms of the lease. Therefore, it's essential that the revised project
plan address the point that "...some limited fencing/gating may be installed to isecure the facilities
leased by the American, Legion."
We believe there are other viable design options for the pump out,facility which the City's Harbor
Resources Division can and should pursue to arrive at a design which will be acceptable to the
California Coastal Commission, Staff as'well as meet the needsl�of—ihe City, the City's boating
community, and American Legion Post 291. For example, a pump out dock float with no attached pier
and gangway has been very successfully operating with proven technology in Avalon for some time.
Alternatively, the CCC Staff Deputy Director indicated a design with 'the pier located a few feet east of
the Legion fence (i.e., on the 15'h Street Public Dock beach) and which would allow public access
between the pier and the fence may alsoibe acceptable., Therefore, it has become increasingly clear
that to , satisfy the conditions imposed by the Coasta1 Commission StAff and to mea the security needs
n th (if any' ) o 'L the new
of the Legion, the old pump out facilityneeds to lber�emoved; a. d e pier poi Lion, I
pump out facility should be constructed east of Legion leasehold property. And it's probably in the
best interests of both the City and the Legion to prepare a written agreement between us on the
disposition of old the pump out facility and fence and the design and location of the new pump out
facility before the City submits a revised project plan or an amended permit application to the Coastal
Commission.
American Legion Newport Harbor Post 291 strongly desires to be responsive to the objectives of other
involved and interested parties in the pump out facility, while preserving the safety, security, property,
and legal rights of American Legion Newport Harbor Post 291 members. As you know, the Legion is
a non-profit military veterans organization devoted to assisting our veterans and their families, and
we're proud to be an active part of the Newport Beach community. We very much appreciate the
City's cooperation and assistance in maintaining our facility for the benefit and enjoyment of our
Nation's veterans. My Legion management team and I would like to meet with you at your earliest
convenience to discuss ftirther details and background on this issue. Please phone me at (800) 463-
7656 (W), (949) 689-0761 (H), or (949) 355-3051 (C), or email me at steven.spriggs@gmac.com or
socalspriggs@,aol.com.
0*-------l--
Commander
American Legion Newport Harbor Post 291
Copies to: Michael F. Henn, District I Councilman, City of Newport Beach
Don Webb, District 3 Councilman, City of Newport Beach
Edward D. Selich, District 5 Councilman; Mayor Pro Tern, City of Newport Beach
Dave Kiff, Assistant City Manager, City of Newport Beach
Tom Rossmiller, Manager, Harbor Resources Division
2
CITY OF NEWPORT BEACH
FINAL LETTER - COMPLETE
HARBOR RESOURCES - 829 Harbor Island Dr., Newport Beach, CA 92660
Tom Rossmiller - 949-644-3041 Chris Miller - 949-644-3043
FIRE DEPARTMENT - P.O. Box 1768, Newport Beach, CA 92658-8915
Nadine Morris - 949-644-3105
AMERICAN LEGION POST 291
ATTN: LINDA CHRISTENSEN
215 15TH STREET
NEWPORT BEACH, CA 92663
Dear Commercial Pier Permittee,
Permit number: HC2004-044
Location : 215 15TH ST
Status: CLOSED
10/08/2004
This is an acknowledgement letter stating that you have successfully corrected the violations previously noted in the
City report that was sent to you earlier this year. Your docks have met the minimum standards as set by The City of
Newport Beach Municipal Code.
Your actions will help reduce the potential for fire related injury and property damage in Newport Harbor. Please
remember that it will be your responsibility to ensure that your docks maintain this level of safety in the years to
come. The Harbor Resources and Fire Departments will be conducting routine inspections of your property in the
future.
Thank you for your compliance. Please feel free to give us a call if you should have any additional questions.
INSPECTION DATE COMMENTS
CHRIS MILLER - HARBOR RESOURCES SUPER VISOR
NADINE MORRIS - FIRE DEPARTMENT INSPECTOR
Page I of I
CITY OF NEWPORT BEACH
NOTICE INVITING BIDS
Sealed bids may be received at the office of the Public Works Department,
3300 Newport Boulevard, P.O. Box 1768, Newport Beach, CA 92658-8915
until 11:00 a.m. on the 10 th day of August 2004,
at which time such bids shall be opened and read for:
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
Title of Project
%C` %r.%# N T R A CT N 0. 37 07
$15,000
Engineer's Estimate
r15r1'WP0;z%
Approved by
Stephen G. Badurn
Public Works' Director
Prospective bidders may obtain one set of bid documents gratis at
the office of the Public Works Department, 3300 Newport Boulevard,
Newport Beach, CA 92663
Contractor License Classification(s) required.- A or C-8
For further information, call Lloyd Dalton, Project Manager at (949) 644-3328
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
I . - - � . � AMERICAN LEGION GROIN WALL COPING REPLACEMENT
TABLE OF CONTENTS
NOTICEINVITING BIDS ......................................................................................... Cover
INSTRUCTIONS TO BIDDERS ...................................................................................... 1
DESIGNATION OF SUBCONTRACTOR(S) ................................................................... 3
NOTICE TO SUCCESSFUL BIDDER ............................................................................ 4
CONTRACT 5
LABOR AND MATERIALS BOND .................................................................................. 11
FAITHFUL PERFORMANCE BOND ............................................................................. 13
PROPOSAL............................................................................................................... PR -1
SPECIALPROVISIONS ............................................................................................ SP -1
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
INSTRUCTIONS TO BIDDERS
1. The following documents shall be completed, executed and received by the Public Works
Department in accordance with NOTICE INVITING BIDS:
INSTRUCTIONS TO BIDDERS
DESIGNATION OF SUBCONTRACTORS
MOS A
P R%011 - AL
2. The City of Newport Beach will not permit a substitute format for the' Contract Documents
listed above. Bidders are advised to review their content with bonding and legal agents prior
to submission of bid.
3.. The estimated quantities indicated in thePROPOSAL are approximate, and are given solely to
*aiiaw -'the coffilbarfson of total bid prices.
4. Bids are to be computed upon the estimated quantities indicated in the PROPOSAL multiplied
by unit price submitted by the bidder. In the event of discrepancy between wording and
figures, bid wording shall prevail over bid figures. In the event of error in the multiplication of
estimated quantity by unit price, the correct multiplication will be computed and the bids will be
compared with correctly multiplied totals. The City shall not be held responsible for bidder
errors and omissions in the PROPOSAL.
5. The C ity of N ewport B each reserves t he right t o reject a ny o r a 11 b ids a nd to waive any
minor irregularity or informality in such bids. Pursuant to Public Contract Code Section
22300, at the request and expense of the Contractor, securities shall be permitted in
substitution of money withheld by the City to ensure performance under the contract. The
securities shall be deposited in a state or federal chartered bank in California, as the escrow
agent.
6. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial
Relations has ascertained the general prevailing rate of per them wages in the locality in which
the work is to be performed for each craft, classification, or type of workman or mechanic
needed to execute the contract. A copy of said determination is available in the office of the
City C Jerk. A 11 p arties t o t he c ontract s hall b e 9 overned b y a 11 p rovisions o f the California
Labor Code relating to prevailing wage rates (Sections 1770-7981 inclusive).
7. The Contractor shall be responsible for insuring compliance with provisions of Section 1777.5
of the Labor Code Apprenticeship requirements and Section 4100 et seq. of the Public
Contracts Code, "Subletting and Subcontracting Fair Practices Act".
8. All documents shall bear signatures and titles of persons authorized to sign on behalf of the
bidder. For corporations, -the signatures shall be of a corporate officer or an individual
authorized by the corporation. For partnerships, the signatures shall be of a general partner.
For sole ownership, the signature shall be of the owner.
The signature below represents that the above has been reviewed.
Contractor's License No. & Classification
f3idder
Authorized Signature/Title
Date
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
DESIGNATION OF SUBCONTRACTOR(S)
State law requires the listing of all subcontractors who will perform work in an amount in
excess of one-half of one percent of the Contractor's total bid. If a subcontractor, is not listed, the
Contractor represents that he/she is fully qualified to and will be responsible for performing that
portion of the work. Substitution of subcontractors shall be made only in accordance with State
law and/or the Standard Specifications for Public Works Construction, as applicable.
Pursuant to Public Contract Code Section 22300 appropriate securities may be substituted
for any monies to be withheld to ensure performance under the Contract.
The Bidder, by signing this designation, certifies that bids from the following
subcontractors have been used in formulating the bid for the project and that these subcontractors
will be used subject to the approval of the Engineer and in accordance with State law. No
changes may be made in these subcontractors except with prior approval of the City of Newport
Beach. (Use additional sheets if needed)
Subcontractor's Name,
Address, Telephone #
Bid
Item
Number
Percent
Of Total
Bid
Description of Work
Percent of
Total Bid
Bidder
Authorized Signature/Title
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
NOTICE TO SUCCESSFUL BIDDER
The following Contract Documents shall be executed and delivered to the Public Works
,Department within ten (10) days (not including Saturday, Sunday and Federal holidays) after the
date shown on the "Notification of Award" to the successful bidder:
• CONTRACTWITH REQUIRED INSURANCE CERTIFICATES AND ENDORSEMENTS
• LABOR AND MATERIALS PAYMENT BOND
• FAITHFUL PERFORMANCE BOND
The City of Newport Beach will not permit a substitute format for these Contract
Documents. Bidders are advised to review their content with bonding, insuring and legal agents
prior to submission of bid. Certificate(s) of Insurance, General Liability Insurance
Endorsement, and Automobile Liability Insurance Endorsement shall be provided as
required by the Contract documents and delivered to the Public Works Department within
ten (10) working days (not including Saturday, Sunday and Federal holidays) after the date
of receipt of the Notice of Award to the successful bidder.
The Labor and Materials Payment Bond and Faithful Performance Bond shall be issued by
an insurance organization or surety (1) currently authorized by the Insurance Commissioner tL0
transact business of insurance in the State of California, and (2) listed as an acceptable surety in
the latest revision of the Federal Register Circular 570.
Pursuant to Public Contract Code Section 22300, appropriate securities may be
substituted for any monies to be withheld to ensure performance under the Contract.
Insurance companies affording coverage shall be (1) currently authorized by the Insurance
Commissioner to transact business of insurance in the State of California, and (2) assigned
Policyholders' Rating A (or higher) and Financial Size Category Class VII (or larger) in accordance
with the latest edition of Best's Key Rating Guide: Property-CasualtV. Coverages shall be
provided as specified in the Standard Specifications for Public Works Construction, except as
modified by the Special Provisions. Certificates of Insurance and additional insured
endorsements shall be on the insurance company's forms, fully executed and delivered with the
Contract. The Notice to Proceed will not be issued until all contract documents have been
received and approved by the City.
4
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
CONTRACT NO. 3707
CONTRACT
THIS AGREEMENT, entered into this — day of 1 2004, by and between the
CITY OF NEWPORT BEACH, hereinafter "City," and Shellmaker Inc., hereinafter
"Contractor," is made with reference to the following facts:
WHEREAS, City has solicited for bids for the following described public work:
AMERICAN LEGION GROIN WALL COPING REPLACEMENT CONTRACT NO. 3707
. Project Description
WHEREAS, Contractor has been determined by City to be the lowest responsible bidder and
Contractor's bid, and the compensation set forth in this Contract, is based upon Contractor's
careful examination of all Contract documents, plans and specifications.
NOW, THEREFORE, City and Contractor agree as follows:
A. CONTRACT DOCUMENTS The complete Contract for the Project includes all of the
following documents: Notice Inviting Bids, Instructions to Bidders, Proposal, giddeF's
I3GRd,'F=aithfuI PeFfGFFRaRGe BGRGI, Labor and Mate�als PaymeRt BGRd, Standard Special
Provisions and Standard Drawings, Plans and Special Provisions for AMERICAN LEGION
GROIN WALL COPING REPLACEMENT5` CONTRACT NO. 3707, Standard
Specifications for Public Works Construction (current adopted edition and all supplements)
and this Agreement, and all modifications and amendments thereto (collectively the
"Contract Documents"). The Contract Documents comprise the sole agreement between
the parties as to the subject matter therein. Any representations or agreements not
specifically contained in the Contract Documents are null and void. Any amendments
must be made in writing, and signed by both parties in the manner specified in the
Contract Documents.
B. SCOPE OF WORK Contractor shall perform everything required to be performed, and
shall provide and furnish all the labor, materials, necessary tools, expendable equipment
and all utility and transportation services required for the Project:
All of the work to be performed and materials to be furnished shall be in strict accordance
with the provisions of the Contract Documents. Contractor is required to perform all
activities, at no extra cost to City which are reasonably inferable from the Contract
Documents as being necessary to produce the intended results.
5
C. COMPENSATION As full compensation for the performance and completion of the
Project as required by the Contract Documents, City shall pay to Contractor and
Contractor accepts as full payment the sum of Twenty Four Thousand, Four Hundred
Nineteen Dollars ($24,419).
This compensation includes:
(1) Any loss or damage arising from the nature of the work,
(2) Any loss or damage arising from any unforeseen difficulties or obstructions in the
performance of the work,
(3) Any expense incurred as a result of any suspension or discontinuance of the work, but
excludes any loss resulting from earthquakes of a magnitude in excess of 3.5 on the
Richter Scale and tidal waves, and which loss or expense occurs prior to acceptance
of the work by City.
D. NOTICE OF CLAIMS Unless a shorter time is specified elsewhere in this Contract, before
making its final request for payment under the Contract Documents, Contractor shall
submit to City, in writing, all claims for compensation under or arising out ofithis Contract.
Contractor's acceptance of the final payment shall constitute a waiver of all claims for
compensation under or arising out of this Contract except those previously made in writing
and identified by Contractor in writin I g as unsettled at the time of its final request for
payment.
E. WRITTEN NOTICE Any written notice required to be given under the Contract
Documents shall be performed by depositing the same in 'the U.S. Mail, postage prepaid,
directed to the address.of Contractor and to City, addressed as follows:
CITY
City of Newport Beach
Public Works Department
3300 Newport Boulevard
Newport Beach, CA 92663
Attention: Lloyd Dalton
(949) 644-3328
(949) 644-3308 fax
F. LABOR CODE 3700 LIABILITY INSURANCE
hereby certifies:
CONTRACTOR
Shellmaker Inc.
2035 F Placentia Avenue
Costa Mesa, CA 92627
Attention: Lorenzo C. Miller
(949) 548-5359
(949) 548-5315 fax
Contractor, by executing this Contract,
"I am aware of the provisions of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workers' Compensation or undertake self-
insurance in accordance with the provisions of the Code, and I will comply with such
provisions before commencing the performance of the work of this Contract."
G. INSURANCE Insurance is to be placed with insurers with a Best's rating of no less
than A:VII and insurers must be a California Admitted Insurance Company.
Contractor shall furnish City with original certificates of insurance and with original
endorsements effecting coverage required by this Contract. The certificates and
endorsements for each insurance policy are to be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements are to be
received and approved by City before work commences. City reserves the right to
require complete, certified copies of all required insurance policies, at any time.
Contractor shall procure and maintain for the duration of the contract insurance against
claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work hereunder by Contractor, his agents,
representatives, employees or subcontractors. The cost of such insurance shall be
included in Contractor's bid.
1. Minimum Scope of Insurance
Coverage shall be at least as broad as:
a) Insurance Services Office Commercial General Liability coverage "occurrence"
form number CG 0002 (Edition 11/85) or Insurance Services Office form number
GL 0002 (Edition 1/73) covering Comprehensive General Liability and Insurance
Services Office form number GL 0404 covering Broad Form Comprehensive
General Liability.
b) Insurance Services Office Business Auto Coverage form number CA 0002 0287
covering Automobile Liability, code 1 "any auto" and endorsement CA 0029 1288
Changes in Business Auto and Truckers Coverage forms - Insured Contract.
c) Workers' Compensation insurance as required by the Labor Code of the State of
California and Employers Liability insurance.
2. Minimurn Limits of Insurance
Coverage limits shall be no less than:
a) General Liability: $1,000,000.00 combined single limit per occurrence for bodily
injury, personal injury and property damage. If Commercial Liability Insurance or
other form with a general aggregate limit is used, either the general aggregate
limit shall apply separately to this project/location or the general aggregate limit
shall be twice the required occurrence limit.
b) Automobile Liability: $1,000,000.00 combined single limit per accident for bodily
injury and property damage.
c) Workers' Compensation and Employers Liability: Workers' compensation limits
as required by the Labor Code of the State of California and Employers Liability.
3. Deductibles and Self�dnsured Retentions
Any deductibles or self-insured retentions must be* declared to and approved by City.
At the option of City, either: the insurer shall reduce or eliminate such deductibles or
self-insured retentions as respects City, its officers, officials, employees and
volunteers; or Contractor shall procure a bond guaranteeing payment of losses and
related investigations, claim administration and defense expenses.
4. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
a) General Liability and Automobile Liability Coverages
City, its officers, agents, officials, employees and volunteers are to be
covered as additional insureds as respects: liability arising out of activities
performed by or on behalf of Contractor, including the insured's general
supervision of Contractor; products and completed operations of Contractor;
premises owned, occupied or used by Contractor; or automobiles owned,
leased, hired or borrowed by Contractor. The coverage shall contain no
special limitations on the scope of protection afforded to City, its officers,
officials, employees or volunteers.
ii. Contractor's insurance coverage shall be primary insurance and/or primary
source of recovery as respects City, its officers, officials, employees and
volunteers. Any insurance or self-insurance maintained by City, its officers,
.7
officials, employees and volunteers shall be excess of the Contractor's
insurance and shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to City, its officers, agents, officials, employees and
volunteers.
iv. Contractor's insurance shall apply separately to each insured against whom
claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
v. The insurance afforded by the policy for contractual liability shall include
liability assumed by contractor under the indemnification/hold harmless
provision contained in this Contract.
b) Workers' Compensation and Employers Liability Coverage
The insurer shall agree to waive all rights of subrogation against City, its officers,
agents, officials, employees and volunteers for losses arising from work
performed by Contractor for City.
c) All Coverages
Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled, rescinded by either party,
reduced in coverage or in limits except after thirty (30) days' prior written notice
by certified mail, return receipt requested, has been given to City.
All of the executed documents referenced in this contract must be returned within
ten (10) working days after the date on the "Notification of Award," so that the City
may review and approve all insurance and bonds documentation.
5. Acts of God
Pursuant to Public Contract Code Section 7105, Contractor shall not be responsible for
the repairing and restoring damage to Work, when damage is determined to have
been proximately caused by an Act of God, in excess of 5 percent of the Contract
M
amount p rovided t hat t he W ork d amaged i s b uilt i n a ccordance w ith the plans and
specifications.
6. Right to Stop Work for Non -Compliance
City shall have the right to offer the Contractor to stop Work under this Agreement
and/or withhold any payment(s) which become due to Contractor hereunder until
Contractor demonstrates compliance with the requirements of this article.
H. RESPONSIBILITY FOR DAMAGES OR INJURY
1 . City and all officers, employees and representatives thereof shall not be responsible in
any manner: for any loss or damages that may happen to the Work or any part
thereof; for any loss or damage to any of the materials or other things used or
employed in performing the Work, for injury to or death of any person either workers or
the public; or for damage to property from any cause arising from the construction of
the work by Contractor, or its subcontractors, or its workers, or anyone employed by it.
2. Contractor shall be responsible for any liability imposed by law and for injuries to or
death of any person or damage to property resulting from defects, obstructions or from
any cause arising from Contractor's work on the Project, or the work of any
subcontractor or supplier selected by the Contractor.
3. Contractor shall indemnify, hold harmless, and defend City, its officers and employees
from and against (1) any and all loss, damages, liability, claims, allegations of liability,
suits, costs and expenses -for damages of any nature whatsoever, including, but not
limited to, bodily injury, death, personal injury, property damages, or any other claims
arising from any and all acts or omissions of Contractor, its employees, agents or
subcontractors in the performance of services or work conducted or performed
pursuant to this Contract; (2) use of improper materials in construction of the Work; or,
(3) any and all claims asserted by Contractor's subcontractors or suppliers on the
project, a nd s hall i nclude r easonable a ttorneys' f ees a nd a 11 o ther c osts incurred in
defending any such claim. Contractor shall not be required to indemnify City from the
sole negligence or willful misconduct of City, its officers or employees.
4. To the extent authorized by law, as much of the money due Contractor under and by
virtue of the Contract as shall be considered necessary by City may be retained by it
until disposition has been made of such suits or claims for damages as aforesaid.
5. Nothing in this article, nor in any other portion of the Contract Documents, shall be
construed as authorizing any award of attorneys' fees in any action to enforce the
terms of this Contract, except to the extent provided for in H.3, above.
6. The rights and obligations set forth in this Article shall survive the termination of this
Contract.
I . EFFECT OF CONTRACTOR'S EXECUTION Execution of this Contract and all other
Contract Documents by Contractor is a representation that Contractor has visited the
Project Site, has become familiar with the local conditions under which the work is to be
performed, and has correlated all relevant observations with the requirements of the
Contract Documents.
J. CONFLICT If there is a conflict between provisions of this Contract and any other
Contract Document, the provisions of this Contract shall prevail.
K. WAIVER A waiver by City or any term, covenant, or condition in the Contract
Documents shall not be deemed to be a waiver of any subsequent breach of the same or
any other term, covenant or condition.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day
and year first written above.
CITY OF NEWPORT BEACH
A Municipal Corporation
is
Stephen G. Badum
Public Works Director
APPROVED AS TO FORM: , CONTRACTOR
CITY ATTORNEY
1 0
By:
Authorized Signature and Title
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
BOND NO.
LABOR AND MATERIALS PAYMENT BOND
WHEREAS, the City Council of the City of Newport Beach, State of California, by motion
adopted, has awarded to hereinafter
designated as the "Principal," a contract for construction of AMERICAN LEGION GROIN WALL
COPING REPLACEMENT in the City of Newport Beach, in strict conformity with the plans,
drawings, specifications and other Contract Documents in the office of the Public Works
Department of the City of Newport Beach, all of which are incorporated herein by this reference.
WHEREAS, Principal has executed or is about to execute AMERICAN LEGION GROIN
WALL COPING REPLACEMENT and the terms thereof require the furnishing of a bond,
providing that if Principal or any of Principal's subcontractors, shall fail to pay for any materials,
provisions, or other supplies used in, upon, for, or about the performance of the work agreed to
be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the
same to the extent hereinafter set forth:
NOW, THEREFORE, We the undersigned Principal, and,
duly authorized to transact
business under the laws of the State of California, as Surety, (referred to herein as "Surety") are
held firmly bound unto the City of Newport Beach, in the sum of
Dollars ($ ) lawful money of the United States of America, said sum
being equal to 100% of the estimated amount payable by the City of Newport Beach under the
terms of the Contract; for which payment well and truly to be made, we bind ourselves, our heirs,
executors and administrators, successors, or assigns, jointly and severally, firmly by these
present.
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal or the Principal's
subcontractors, fail to, pay for any materials, provisions, or other supplies, implements or
machinery used in, upon, for, or about the performance of the work contracted to be done, or for
any other work or labor thereon of any kind, or for amounts due under the Unemployment
Insurance Code with respect to such work or labor, or for any amounts required to be deducted,
withheld and paid over to the Employment Development Department from the wages of
employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment
Insurance Code with respect to such work and labor, then the Surety will pay for the same, in an
amount not exceeding the sum specified in this Bond, and also, in case suit is brought to enforce
the obligations of this Bond, a reasonable attorney's fee, to be fixed by the Court as required by
the provisions of Section 3250 of the Civil Code of the State of California.
The Bond shall inure to the benefit of any and all persons, companies, and corporations
entitled to file claims under Section 3181 of the California Civil Code so as to give a right of action
to them or their assigns in any suit brought upon this Bond, as required by and in accordance with
the provisions of Sections 3247 et. seq. of the Civil Code of the State of California.
And Surety, for value received, hereby stipulates and agrees that no change, extension of
time, alterations or additions to the terms of the Contract or to the work to be performed
thereunder or the specifications accompanying the same shall in any wise affect its obligations on
this Bond, and it does hereby waive notice of any such change, extension of time, alterations or
additions to the terms of the Contract or to the work or to the specifications.
In the event that any principal above named executed this B ond a s a n i ndividual, i t i s
agreed that the death of any such principal shall not exonerate the Surety from its obligations
under this Bond.
IN WITNESS WHEREOF, this instrument has been duly executed by the above named
Principal and Surety, on the day of 2004.
Principal
Name of Surety
Address of Surety
Telephone
Authorized Signature/Title
Authorized Agent Signature
Print Name and Title
NOTARY ACKNOWLEDGMENTS OF PRINCIPAL AND SURETY MUST BE ATTACHED
1 2
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
BOND NO.
FAITHFUL PERFORMANCE BOND
The premium charges on this Bond is $
being at the rate of $
per thousand of the Contract price.
WHEREAS, the City Council of the City of Newport Beach, State of California, by motion
adopted, awarded to , hereinafter
I
designated as 'the "Principal", a contract for construction ofrA%MER CAN "EGIWIII ROIN I AL-"
COPING REPLACEMENT in the City of Newport Beach, in strict conformity with the plans,
drawings, specifications, and other Contract Documents maintained in the Public Works
Department of the City of Newport Beach, all of which are incorporated herein by this reference.
WHEREAS, Principal has executed or is about to execute AMERICAN LEGION GROIN
WALL COPING REPLACEMENT and the terms thereof require the furnishing of a Bond for the
faithful performance of the Contract;
NOW, THEREFORE, we, the Principal, and
, duly authorized to transact business under the laws of the State of
California as Surety (hereinafter "Surety"), are held and firmly bound unto the City of Newport
Beach, in the sum of Dollars ($ ) lawful
money of the United States of America, said sum being equal to 100% of the estimated.amount of
the C ontract, t o b e p aid t o the City of Newport Beach, its successors, and assigns; for which
payment well and truly to be made, we bind ourselves, our heirs, executors and administrators,
successors, or assigns, jointly and severally, firmly by these present.
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, or the Principal's
heirs, executors, administrators, successors, or assigns, fail to abide by, and well and truly keep
and perform any or all the work, covenants, conditions, and agreements in the Contract
Documents and any alteration thereof made as therein provided on its part, to be kept and'
performed at the time and in the manner therein specified, and in all respects according to its true
intent and meaning, or fails to indemnify, defend, and save harmless the City of Newport Beach,
its officers, employees and agents, as therein stipulated, then, Surety will faithfully perform the
same, in an amount not exceeding the sum specified in this Bond; otherwise this obligation shall
become null and void.
1 3
As a part of the obligation secured hereby, and in addition to the face amount specified in
this Performance Bond, there shall be included costs and reasonable expenses and fees,
including reasonable attorneys fees, incurred by the City, only in the event the City is required to
.bring an action in law or equity against Surety to enforce the obligations of this Bond.
Surety, for value received, stipulates and agrees that no change, extension of time,
alterations or additions to the terms of the Contract or to the work to be performed thereunder or
to the specifications accompanying the same shall in any way affect its obligations on this Bond,
and it does hereby waive notice of any such change, extension of time, alterations or additions of
the Contract or to the work or to the specifications.
This Faithful Performance Bond shall be extended and maintained by the Principal in full
force and effect for one (1) year following the date of formal acceptance of the Project by the City.
In the event that the Principal executed this bond as an individual, it is agreed that the
death of any such Principal shall not exonerate the Surety from its obligations under this Bond.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and
Surety above named, on the day of 12004.
-Principal
Name of Surety
Address of Surety
. elephone
Authorized Signature/Title
Authorized Agent Signature
Print Name and Title
NOTARY ACKNOWLEDGMENTS OF PRINCIPAL AND SURETY MUST BE ATTACHED
F:\USERS\PBWkShared\Contracts\FY 04-MArnedcan Legion Wall-Informa]\CONTRACT-INFORMAL.doc
1 4
SP1 OF 6
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
SPECIAL PROVISIONS
AMERICAN LEGION GROIN WALL COPING REPLACEMENT
CONTRACT NO. 3707
INTRODUCTION
All work necessary for the completion of this contract shall be done in accordance with
(1) these Special Provisions; (2) the Plan (Drawing No. H -5162-S); (3) the City's
Standard Special Provisions and Standard Drawings for Public Works Construction,
(2004 Edition), including Supplements; (4) Standard Specifications for Public Works
Construction (2003 Edition), including supplements. Copies of the Standard Special
Provisions and Standard Drawings may be purchased at the Public Works Department.
Copies of the Standard Specifications may be purchased from Building News, Inc.,
1612 South Clementine Street, Anaheim, CA 92802, 714-517-0970.
The following Special Provisions supplement or modify the Standard
Specifications for Public Works Construction as referenced and stated
hereinafter:
PART 1
GENERAL PROVISIONS
SECTION 2 --- SCOPE AND CONTROL OF THE WORK
2-6 WORK TO BE DONE Add to this section, "The work necessary for the completion
of this contract consists of removing and reconstructing a concrete coping and fence
atop a portion of the groin wall located between Marina Park beach and the American
Legion marina.
SP20F6
SECTION 3 --- CHANGES IN WORK
3-3 EXTRA WORK
3-3.2 Payment
3-3.2.3 Markup. Replace this section with,
"(a) Work by Contractor. The following percentages shall be added to the
Contractor's costs and shall constitute the markup for all overhead and profits:
1 ) Labor ............................................ 20
2) Materials ....................................... 15
3) Equipment Rental ........................... 15
4) Other Items and Expenditures ........... 15
To the sum of the costs and markups provided for in this subsection, 1 percent
shall be added for compensation for bonding.
(b) Work by Subcontractor. When all or any part of the extra work is
performed by a Subcontractor, the markup established in 3-3.2.3(a) shall be
applied to the Subcontractor's actual cost of such work. A markup of 10 percent
on the first $5,000 of the subcontracted portion of the extra work and a markup
of 5 percent on work added in excess of $5,000 of the subcontracted portion of
the extra work may be added by the Contractor.
SECTION 4 --- CONTROL OF MATERIALS
4-1 MATERIALS AND WORKMANSHIP
4-1.3 Inspection Requirements
4-1.3.4 Inspection and Testing. All material and articles furnished by the
Contractor shall be subject to rigid inspection, and no material or article shall be used in
the work u ntil it h as b een i nspected and accepted by the Engineer. The Contractor
shall furnish the Engineer full information as to the progress of the work in its various
parts and shall give the Engineer timely (48 hours minimum) notice of the Contractor's
readiness for inspection.
The Engineer shall select an independent testing laboratory and pay for all testing as
specified in the various sections of the Standard Special Provisions and these Special
Provisions. When, in the opinion of the Engineer, additional tests and retesting due to
failed tests or inspections are required because of unsatisfactory results in the manner
in which the Contractor executed his work, such tests and inspections shall be paid for
by the Contractor.
SECTION 6 --- PROSECUTION, PROGRESS AND ACCEPTANCE OF THE WORK
SP 3 OF 6
6-1 CONSTRUCTION SCHEDULE AND COMMENCEMENT OF WORK. Add to this
section: "The time of completion as specified in Section 6-7, shall commence on the
date of the 'Notice to Proceed."
No work shall begin until a "Notice to Proceed" has been issued, a p re -construction
meeting has been conducted, and a schedule of work has been approved by the
Engineer. The Contractor shall submit a construction schedule to the Engineer for
approval a minimum of five working days prior to commencing any work.
The term "work" as used herein shall include removing and replacing P.C.C. coping and
chain link fence as shown on the Plan, cleanup, and all other incidental items of work."
6-7 TIME OF COMPLETION
6-7.1 General. Add to this section: "The Contractor shall complete all work under
the Contract within 15 consecutive working days after the date on the Notice to
Proceed. "
It shall be the Contractor's responsibility to ensure the availability of all material prior to
the start of work. Unavailability of m aterial w ill n ot b e s ufficient reason to g rant t he
Contractor an extension of time for 100 percent completion of work."
6-7.2 Working Days. Revise 3) to read: "any City holiday, defined as January l't,t
the third M onday i n J anuary (Martin Luther King Day), the third M onday i n February
th
(President's Day), the last Monday in May (Memorial Day), July 4 , the first Monday in
September (Labor Day), November 11 th (Veterans Day), the fourth Thursday and Friday
in November (Thanksgiving and Friday after), December 24 th, (Christmas Eve — half
day), December 25 th (Christmas), and December 31st (New Year's Eve — half day). If
January 1st, July 4th, November 11th or December 25th falls on a Sunday, the
following Monday is a holiday."
6-7.4 Working Hours. Normal working hours are limited to 7:30 a.m. to 6:00 p.m.
Monday through Friday.
The Contractor and his subcontractors, suppliers, etc., shall not generate any noise at
the work site, storage sites, staging areas, etc. before or after the normal working hours
prescribed above.
SECTION 7 --- RESPONSIBILITIES OF THE CONTRACTOR
7-8 PROJECT SITE MAINTENANCE
7-8.5 Temporary Light, Power and Water. Add to this section: "If the Contractor
elects to use City water, he shall arrange for a meter and tender an $813 meter deposit
with the City. Upon return of the meter to the City, the deposit will be returned to the
SP4 OF 6
Contractor, less a quantity charge for water usage and repair charges for damage to the
meter."
7-8.6 Water Pollution Control. Add to this section, "Surface runoff water, including
water used during sawcutting operations, containing mud, silt or other deleterious
material due to the construction of this project shall be treated by filtration or retention in
settling basin(s) sufficient to prevent such material from entering into Newport Harbor."
7-10 PUBLIC CONVENIENCE AND SAFETY
7-10.1 Traffic and Access. Add to this section: "The Contractor shall provide for
public access in accordance with Section 7-10 of the Standard Specifications and the
Work Area Traffic Control Handbook (WATCH), published by Building News, Inc.
The Contractor may access the groin by water from Newport Bay or by land from the
18 th Street end/across Marina Park beach. If access is from 18 th Street end, the
Contractor shall maintain public access to the street end and Marina Park beach at all
times. The Contractor shall cooperate with the Engineer to post advance notice for all
persons whose access will be impacted by construction operations. The Contractor
shall furnish and install signage, barricades, delineators, yellow safety ribbon, and any
other measures deemed necessary by the Engineer to direct and keep the public from
areas of construction.
The Contractor's equipment may occupy the American Legion marina side of the groin
and their parking lot with prior approval from the American Legion and the Engineer."
7-10.2 Storage of Equipment and Materials in Public Streets. Delete the first
paragraph and add the following: "The Contractor shall obtain the Engineer's approval
of sites for storing equipment and materials prior to arranging for or delivering
equipment and materials to the sites. Construction materials and equipment may be
stored on the beach with prior approval of the Engineer. Prior to move -in, the
Contractor shall take photos of the site. Upon completion of work, the Contractor shall
restore the site to its pre -construction condition."
7-10.4 Safety
7-10.4-1 Safety Orders. Add to this section: "The Contractor shall be solely
and completely responsible for conditions of the jobsite, including safety of all persons
and property during performance of the work, and the Contractor shall fully comply with
all State, Federal and other laws, rules, regulations, and orders relating to the safety of
the public and workers.
The right of the Engineer to conduct construction review or observation of the
Contractor's performance shall not include review or observation of the adequacy of the
Contractor's safety measures in, on, or near the construction site."
7-10 PUBLIC CONVENIENCE AND SAFETY
SP 5 OF 6
7-10.5 "No Parking" Signs. T he Contractor shall install, and maintain in place
"NO PARKING -TOW AWAY" signs (even if "NO PARKING" signs are posted) which he
shall post at least forty-eight hours in advance of the need for enforcement. In addition,
it shall be the Contractor's responsibility to notify the City's Police Department, Traffic
Division at (949) 644-3717, for verification of posting at least forty-eight hours in
advance of the need for enforcement. The signs shall (1) be made of white card stock;
(2) have minimum dimensions of 12 -inches wide and 18 -inches high; and (3) be City of
Newport Beach "Temporary Tow -Away, No Parking" signs available at the Public Works
Department public counter.
The Contractor shall print the hours and dates of parking restriction on the "NO
PARKING JOW AWAY" sign in 2 -inch high letters and numbers. A sample of the
completed sign shall be reviewed and approved by the Engineer prior to posting.
7-10.7 Notices to Residents. Five working days prior to starting work, the
Contractor shall deliver a construction notice to residents within 500 feet of the project,
describing the project. The notice will be provided by the Engineer. The Contractor
shall insert the.applicable dates and times at the time the notices are distributed.
An interruption of work shall require re -notification. Errors in distribution, false starts,
acts of God, strikes or other alterations of the schedule will require Contractor re -
notification using an explanatory letter furnished by the Engineer.
7-15 CONTRACTOR'S LICENSES. At the time of the award and until completion of
work, the Contractor shall possess a General Engineering Contractor A or Specialty
Concrete C-8 License. At the start of work and until completion of work, the Contractor
and all sub -contractors shall possess a Business License issued by the City of Newport
Beach.
7-16 CONTRACTOR'S RECORDS/AS BUILT DRAWINGS. The Contractor shall
maintain books, records, and documents in accord with generally accepted accounting
principles and practices. These books, records, and documents shall be retained for at
least three years after the date of completion of the project. During this time, the
material shall be made available to the Engineer. Suitable facilities are to be provided
for access, inspection, and copying of this material.
SECTION 9 --- MEASUREMENT AND PAYMENT
9-3 PAYMENT
9-3.1 General. Revise paragraph two to read: "The lump sum prices bid for the
work specified in the proposal shall include full compensation for furnishing all labor,
materials, tools, and equipment and doing all the work to complete the work in
place, and no other compensation will be allowed therefor.
SP 6 OF 6
PART 3
CONSTRUCTION METHODS
SECTION 300 --- EARTHWORK
300-1 CLEARING AND GRUBBING
300-1.3 Removal and -Disposal of Materials
300-1.3.1 General. Add to this section: "The work shall be done in accordance
with Section 300-1.3.2 of the Standard Specifications except as modified and
supplemented herein. The join to the existing coping shall be at a full depth sawcut.
Coping removal may be accomplished by the use of jackhammers or sledgehammers.
The Engineer shall approve removal accomplished by other means.
The Contractor shall maintain the job site in a clean and safe condition. The Contractor
shall remove any broken concrete, debris or other deleterious material from the bay
immediately and from the job site at the end of each workday.
300-1.5 Solid Waste Diversion. Concrete waste generated from the job site shall be
disposed of at a facility that crushes such materials for reuse.
WORKSHEET FOR BUILDING FIRE PERMIT APPLICATION
CITY OF NEWPORT BEACH
P1 PA CZF: OPIKIT nP TVD= (9 BUILDING DEPARTMENT
1. PROJECT ADDRESS (NOT MAILING ADDRESS)
FLOOR
SUITE NO.
t s—
NER'S E -MAIL ADDRESS
LEGAL DESCRIPTION
No. UNITS
LOT BLOCK TRACT
F1
2. DESCRIPTION OF WORK U S E
# OF STORIES
VALUATION $ (Cl 00
N EW F-1 ADD ALTER F-1 DEMO E] SQ FT
(NEW/ADDED/EXTG)
Check Appropriate Box
3. OWNER'S NAME LAST
kmer� (I
(60-
FIRST
O?ql
OWNER'S ADDRESS
kr
e
NER'S E -MAIL ADDRESS
CITY STATE
64.
PHONE NO.
0 _7 0
F1
4. ARCH ITECT/DES I GNER'S NAME LAST
FIRST LIC. NO,
ARCH ITECT/DES IG N ER'S ADDRESS
ARCH ITECT/DES IGN ER'S' E-MAIL ADDRESS
CITY STATE
ZIP
PHONE NO.
F]
5. ENGINEER'S NAME LAST
FIRST
STATE LIC. NO.
ENGINEER'S ADDRESS
ENGINEER'S E-MAIL ADDRESS
CITY STATE
ZIP
PHONE NO.
X
6. CONTRACTOR'S N
L tj ,
BUSINESS LIC.
STATE LIC.
tibl2t Class
CONTRAC�R'S,,ADDRESS
-COK-0,340�,No.7
CONTRACTOR'S E-MAIL ADDRESS
CITY STATE
al
ZIP
,_,jP41NE
NO.
OFFICE' USE ONLY
TYPE OF CONSTRUCTION
OCCUPANCY- GROUP
PERMIT NO.
PLAN CHECK NO.
PLAN CHECK FEE $
PLAN CHECK ENG.
-RUN -&-
Go
'Parstely)
7,, :T
0
A
r\j
'7
....... ........ I r
P0
CITY o f NEWPORT BEACH
TO L.B.
CITY OF NEWPORT BEACH
RO. BOX 1768, NEWPORT BEACH, CA 92658-8915
t/ op,
November 13, 2001
Mr. Ray Geanson
American Legion
215 15" Street
Newport Beach, CA 92663
Re: Dinghy Racks on American Legion Property
Dear Ray:
// 12/_)"__'
Thank you for the opportunity to meet with you and Mr. Tarwater, the Post
Commander, to discuss the possibility of dinghy racks on American Legion
Property. At the meeting you -both indicated that the decision would have to be
made by the Board at American Legion. There were a number of issues that you
felt would be problematic, such as; parking at the site, liability issues relative to
the Legion's launch crane; and administration problems dealing with use of other
parts of the property (such as. docks themselves, restrooms, and other club
facilities). My impression was you felt it would be a difficult sell to the board, but
you would try if the City wanted to pursue it.
During our discussions we looked at the possibility of putting dinghys on the
eastside, adjacent to the club property on the 15 th Street beach. This looks like it
may be more viable to all parties and the City will pursue this option.
Again, thanks for your time and I look forward to working with you in the future.
Sincerely,
T� y M um, Director
Division of Harbor Resources
Cc: Dave Kiff
3300 Newport Boulevard, Newport Beach
CITY OF NEWPORT BEACH FIRE MARINE DEPARTMENT
HARBOF,,_,"=RMIT APPLICATION (Please print,.i1formation)
Applicant (Property Owner) Address Telephone
_Z Z 1-5) 2-157
2. Project Address (Street Address) Harbor Permit Number
3. New Construction Revision Maintenance Dredging
71' X"
4. Fee CheckNo. Date
C0A157-1J9Z9'0-7-
5. Brief Description of Proposed Work: XU16�416
6. Submit 8 1/2" x 11" Drawings (3), Include:
1). Location and dimension of proposed structure including piles and location of existing structures.
on adjacent properties.
2). Location of bulkhead, pierhead and project lines.
3). Location of property lines. k
4). Location of channel markers within 200 feet.
5). Lot sizes and lot numbers, if available.
6). Existing ground profile beneath proposed structure.
7). Elevation of top and bottom of bulkheads and piles with respect to M. L. L.W.
8). Area and profile of any proposed dredging with elevations showing depths with respect of M.L.L.W,
9). Any special conditions affecting the construction or affecting boating operations.
10). Complete al I information required in information block, bottom of sheet. Note that the OWNER.
of the property is the applicant.
1 1).Drawing size shall be 8 - 1/2" x I V.
12).Scale shall be adequate to clearly show the above information.
13)'. Existing structures shall be shown in light dashes. New work shall be shown.in heavy solid lines.
7. Owner -Builder Declaration must be completed (on reverse side of this sheet)
k6pplicant'slAgent's Signature:
Joint Permittee Signature (if apIAica@_e): Date:
9. Work can begin once the City has received evidence of the following additional approvals and you have
been notified to proceed. If you begin prior to the.notice you will be in violation of the Newport Beach
Municipal Code and subject to penalties.
10. Your permit will not be final until we have conducted an on site inspection once construction is
completed as per Municipal Code, Section 17.24, if we have not been contacted for a final inspection.
OFFICE USE ONLY
Approval in Concept.
Approval of the City of Newport Beach Council.
Approval of the Army Corps of Engineers
Approval of the California Coastal Commission.
Approval of the City's Public Works Department.
Approval of the City's Building Department.
Approval of County of Orange.
Electrical and/or plumbing permit (Building Department)
Issued. (Permit is stamped drawing)
Site Inspection. (call 644-3043 for appointment)
Site Re -inspection
Conditions:
Date
Date
Date
Date
Date
Date
Date
Date
Date
Date
Date
OWNER -BUILDER DECLARATION
I hereby affirm that I am exempt from the contractor's license law for the following reasons:
(Sec. 7031d.5, Business and professions Code). Any City or County which requires a permit to
construct, alter, improve, demolish, or repair any structure, prior to its issuance, also requires
the applicant for such permit to file a signed statement that he is licensed pursuant to the
provision of the Contractors License Law (Chapter 9, commencing with Section 7000, of
Division 3 of the Business and Professions Code) or that he is exempt therefrom and the basis
for the alleged exemption. Any violation of Section 7031.5 by any applicant for a permit
subjects the applicant to a civil penalty for not more than five hundred dollars ($500).
"k4l, as owner of the property, or my employees with wages as their sole compensation,
will do the work, and the structure is not intended or offered for sale (Sec. 7044, Business and
Professions Code: The Contractor's License Law does not apply to an owner of property who
builds or improves thereon, and who does such work himself or through his own employees,
provided that such improvements are not intended or offered for sale. If, however, the
building or improvement is sold within one year of completion, the owner -builder win have
the burden of proving that he did not build or improve for the purpose of sale).
- 1, as owner of the property, am exclusively contracting witl� licensed contractors to
construct the project (Sec. 7044, Business and Professions Code: The Contractor's License Law
does not apply to an owner of property who builds or improves thereon, and who contracts for
such projects who builds or improves thereon, and who contracts for such projects with a
Contractor(s) License pursuant to the Contractor's License Law).
I am exempt under Sec. of Business and Professional Code for this reason:
V --,-
Owner's Si
Contractor:
Address: ;
I
License class: State Board No. --2City License No.
License Contractor's Declaration
I hereby affirm that I am licensed under provisions of Chapter 9 (commencing with Section
7000) of Division 3. of the Business and Professions Code, and my license is in full force and
effect.
Contractor's Signature — Date:
CITY OF NEWPORT BEACH
FIRE AND MARINE DEPARTMENT
MARINE ENVIRONMENTAL MANAGEM \NT
CODE ENFORCEMENT
3300 NEWPORT BLVD.
NEWPORT BEACH, CA. 92663
(949) 644-3043
Date -5; —ly—ff Time e5v'o a
An inspection of the premises located at ��111 '
the City of Newport Beach, revealed a violation(s) of
Name of owner or business:
if different:
NOTICE OF VIO
M
ION
,519A
WA NG Q�LL
rPR OUSLY ADVISED
AL(WARNING
57:7— Al. /13. d9.
Beach Municipal Code.
NEWPORT BEACH MUNI. SCRIPTION OF VIOI)ATION(S):
CODE SEC.
2 -
or
I U t�UlkljBU UIMIS VIULA'I'IUN:
."'7 ,
THIS VIOLATION MUST BE CORRECTED BY If the violation is not
corrected by the date specified, an ADMINISTRATIVE CITATION will be issued and penalties will
begin to accrue ($100.00, $200.00 AND $500.00) each day. Additional enforcement actions such as
administrative abatement, civil penalties, revocation of permits, recordation of notice of violation,
withholding of future municipal permits, criminal prosecution and/or civil injunction may be utilized to
correct this violation(s). In addition, a 10% late fee will be charged on any reinspection invoice not paid by
the due date.
A REINSPECTION WILL BE MADE ON OR AFTER THE CORRECTION DATE. IF
THE CORRECTION(S) IS NOT COMPLETED AN ADMINISTRATIVE CITATION
WILL BE ISSUED AND FEES WILL BEGIN TO ACCRUE.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and
)rrect. Executed on the date shown above.
PRINT NAME OF ISSUING OFFICER ID#
WHITE (Violation Copy) CANARY (Last Notice Copy)
PINK (Hearing Copy) GOLDENROD (Officer Copy)
r
NEWPORT BEACH FIRE AND MARINE DEPARTMENT
May 18,1999
American Legion Post 291
215 15 th Street
NewDort Beach, Ca 92663
Re: Pier Permit RP 118 02151
Sirs:
The City of Newport Beach has received a complaint that your dock facility has
recently had maintenance work done to it without first obtaining the required permit. A
field inspection conducted today, May 19, 1999 verified that five (5) of your dock
fingers have recently been replaced. Information received in this office has Larry
Barrett as theContractor who did the work. Mr. Barrett is familiar with Chapter
i 7-2-470 1-0 of the Municipal Code requiring a Maintenance Permit from the Fire and
Marine Department. Particularly before commencing on any job that has the scope of
work that was done at the Legion docks.
Enclosed is a Warning Citation. Please have Mr. Barrett or a representative from the
Legion come into this office and submit an application for a Maintenance Permit. This
permit will be for the work that has been completed, and for any other maintenance
work planned for your pier and docks.
If you need to contact me in regards to this matter, please call 949-644-3043
Sincerely,
14 6 - e
Wes Armand
Harbor Inspector
Cc: Deputy Chief Melum
57�
Melum, T
From:
Kiff, Dave
Sent:
Thursday, March 18, 1999 11:07 AM
To:
Ducey,Peggy
Cc:
Melum, Tony
Subject:
Marinapark etc.
Marion has the files now.
As an FYI, I've met once (about a month ago now) with Bob Wynn and Don Donaldson at their request to talk
about what might be in a new American Legion lease. Bob has also talked with Tony and Tim about it. I think the
Council should be asked early on if we want the Legion to continue operating the marina OR if the City wants to
take it over. Either way, we should consider adding slips if we can -- like in front of the Marinapark beach. My
sense is that the Legion wants to continue operating the marina, but they really want the right to continue the
clubhouse (and bar -- mostly bar). Tony thinks that the Legion can't beat the City's revenue return if we operate it.
My request to them was that any new marina lease with them be explicit about how they manage the waiting list +
whether or not folks can liveaboard + how they treat dry slip renters (bathroom privileges and such). We've had
complaints in the past about "good ol' boy" practices there. If we don't want that in the lease, I offered that we
could put it in an addendum or refer directly to the individual leases with slip renters. Finally, I think it would be
nice if they upgraded their onshore restroom facilities to accommodate more folks, maybe even guest users
w/guest slips. They weren't too keen on that one.
Meeting w/Pelican Point board is at 6:30 on 3/31 at Pacific Club.
Tony -- Peggy will be taking over the Marinapark discussions -- along with that goes American Legion and Scout
Hut et al.
Dave
-----Original Message -----
From:
Ducey,Peggy
Sent:
Thursday, March 18, 1999 10:09 AM
To:
Kiff, Dave
Cc:
Brockman, Marion
Subject:
Could you please locate all your files on the American Legion, Marinapark, and Girl Scout house and give to
Marion. Also, do you have any meetings scheduled on annexation?
.Page 1
NEWPORT BEACH FIRE AND
July 9, 1998
Don Donaldson
American Legion Post 291
215 151h Street
Newport Beach, Ca 92663
Re: Pier Permit 11802151
Dear Mr. Donaldson:
MARINE DEPARTMENT
Thank you for taking time to meet with Mike Macey and me yesterday
at the American Legion Marina. This letter will summarize the
understanding we agreed upon for working towards compliance with
the Fire Code for fire standpipe systems on piers and docks.
A Fire Department field inspection determined that the American
TRgion Marina lacked three to four fire cabinets for the size and
configuration of the marina. Notice was sent to the Legion office
on April 16,1998, indicating this violation.
At a meeting between representatives of both the City of Newport
Beach Fire and Marine Department and the American Legion Post 291,
it was agreed that the Legion would submit to the Fire and Marine
Department, withinsixty days, evidence that they have received bids
for the required work and a letter stating when the work to install the
necessary hose cabinets will be completed.
Questions regarding the hose cabinets should go to Mike Macey,
Deputy Fire Marshall, at 644-3108. For all other additional questions
please call 644-3043.
Sincerely,
t' 'j/�" L.
Wes Armand
Environmental Management
Cc: Mike Macey
Ia - " 1 1114'0 'N�
NS" ORT,&
NEWPORT BEACH FIRE AND MARINE
April 16,1998
American Legion Post 291
215 15th Street
Newport Beach, Ca. 92663
Re: Pier Permit RP11802151
Sirs:
DEPARTMENT
The City of Newport Fire and Marine Department inspects all
corm-nercial marinas and facilities that have multiple boat slips to
ensure compliance to the Uniform Fire Code.
Recent field inspections have revealed several violations with the piers
and docks, bayward from your facility at 215 15th Street. Specifically,
there is not sufficient fire protection (fire cabinets) on your docks.
There must be approximately three to four fire cabinets for the size and
configuration of your marina. These cabinets must be installed so they
can service any portion of a float more than 150 feet from fire apparatus
access. Also to service the cabinets on the docks, it is necessary to
extend the Fire Department water line to these docks. The pipe must
have all proper fittings, and the cabinets must be totally functional with
the required extinguishers, hoses, and glass panels.
The City of Newport Beach Building Department will issue the permit
for the above work. If you require additional information in regards to
work required to comply with the fire code, please contact Mike Macey,
City of Newport Beach Deputy Fire Marshall, 6443108. Generally, the
fire cabinets must have certificates that are good for five years.
Please contact the Building Department and submit an application to
do the above work within thirty (30) days from the date on this letter.
Sincerely,
Wes Armand
Environmental Management, 644-3043
NEWPORT BEACH FIRE AND MARINE DEPARTMENT
July 9, 1998
Don Donaldson
American Legion Post 291
215 151h Street
Newport Beach, Ca. 92663
Re: Pier Permit 11802151
Dear Mr. Donaldson:
Thank you for taking time to meet with Mike Macey and me yesterday
at the American Legion Marina. This letter will summarize the
understanding we agreed upon for working towards compliance with
the Fire Code for fire standpipe systems on piers and docks.
A Fire Department field inspection determined that the American
T-egion Marina lacked three to four fire cabinets for the size and
configuration of the marina. Notice was sent to the Legion office
on April 16,1998, indicating this violation.
At a meeting between representatives of both the City of Newport
Beach Fire and Marine Department and the American Legion Post 291,
it was agreed that the Legion would submit to the Fire and Marine
Department, within s*ixty days, evidence that they have received bids
for the required work and a letter stating when the work to install the
necessary hose cabinets will be completed.
Questions regarding the hose cabinets should go to Mike Macey,
Deputy Fire Marshall, at 644-3108. For all other additional questions
please call 644-3043.
Sincerely,
t' �j� L
Wes Armand
Environmental Management
Cc: Mike Macey
February 2,1998
Robert Lorenzini
177 Riverside Ave, Newport Beach, Calif. 92663
Dear Mr KA
It is with great reluctance and sadness that I find myself forced to bring this matter to your
attention on behalf of myself and a nuinber of other dry storage renters at American Legion
Post 29 1. Let me first say that I have the utmost respect for the work this organization does for
veterans and charity, however for the almost 10 years I have been a member of this Post, it has
been plagued by petty infighting and power struggles. There is a segment of the Post
membership that resents those members with boating interests, accusing them of trying to turn
the Post into a yacht club.
We feel the present membership of the post corporate board is acting in a harassing and
discriminatory mariner toward the dry storage renters. I am including a letter written on my
behalf by my attorney. The action that precipitated my retaining legal consul was a comment
made to me by Mr. Donald Donaldson that "I will do whatever it takes to get you out of here".
In the context of the comment I took "you7' to mean "dry storage renters, especially those who
own offshore moorings." Over the years �& Donaldson has shown disdain for us and has
unsuccessfully presen�d many motions to reduce our privileges.
Our complaint covers a number of areas. My letter to the legion didnot cover parking policy
as I have a garage nearby, but the board chose to bring up parking policy in their reply and is
of paramount concern to the others on whose behalf I am writing. Those renters who are Post
members have enjoyed parking in the lot when using their boats, As you know there has never
been adequate parking on the peninsula to satisfy demand during certain periods nor will there
ever be. The Post parking lot is no exception but it remains underutilized for most of the week
with the exception of Sunday evening and during certain post functions. Those doing business
in Newport Beach are required to support some of their parkmg burden in the city and the post
has done so by setting aside a certain number of spaces when available for marina slips. There
are 90 dry storage renters who have no parking available at this time, which places a burden
on the surrounding community. This situation is especially offensive to chy storage renters
because they mostly use the facility during daylight hours when the lot is empty, A
representative from the mooring association appeared before the corporate board to try to
reach some accommodation, but Post 291 chose not to conapromise 'in any manner.
The dock adjacent to the launching area at one time had cleats rented out as dinghy be -ups.
When the post chose to install dinghy racks to accommodate more renters these dinghy's were
moved to the new racks and this area was set aside for temporary (less than overnight tie-up)
as noted on the long time posted sign. I verified this past policy with the corporate board
president in office at the time these spaces were set aside as well as with the three subsequent
board presidents as noted in my letter. Mr Donaldson in his agenda ta force us out of the
manna is promoting the false theory that this area is not for our use, and will not be available
to us in the future, despite that fact it has been used in that manner for more than 10 years
previously -
Mr. Donaldson and other corporate board members feel that the rules and regulations of Post
291 do not have to be enforced on an equal basis for all members or marina tenants. I chose
not to detail any specifics at this time but we are prepared to show that marina policy and the
assignments of slips and storage spaces have not been carried out on an equal basis. They feel
free to overlook post and city policy when they feel it is in their interest to do so.
This brings me to the restroom facilities. We dinghy rack renters pay what I consider a
nominal surn even though it is approximately double the going rate anywhere in the harbor.
Both my spouse and myself rent a rack as well as a storage locker. I was told at the time I was
assigned my space that this discrepancy in the rate was to cover the cost of providing hot
water for showers. I paid a ten dollar deposit for the shower key. Our restrooin privileges
have just been revoked under the guise that a dry storage renter loaned or gave a key to
someone not entitled. While it is true that someone apparently did obtain a key, it did not
necessarily show that it came from one of us. The post hands out keys to transient boats using
the guest dock on a weekly basis. In all the tune I have been a renter the restroorn keys have
only been changed once. Re -keying the locks is part of the cost of doing -business and I
suggest the post has been lax in this regard. It should not be inconceivable that occasionally
someone could get unauthorized access and to deny a group of persons the most basic of
human needs on this basis is not justified. One renter contacted the assistant city manager
about this issue and was told that he could obtain a key to the restrooms from the bartender
when needed. There is not always a bartender available nor is access to the bar even possible
without a keyeard that non-members do not posses.
It has been made obvious to us that we are no longer welcome in this facility. We can only
speculate that the possib ' ility that the manna management and revenue would return to city
control and Mr. Donaldsons personal bias is the basis for their actions. The dinghy racks
provide the highest dollar return per square fbot in the marina. This marina provides the only
dingy storage for the hundreds of offshore mooring in the area and possibly is located on
tidelands property. Why the post would chose at this time to disenfi-anchise a large nurnber of
members while in the process of delicate negotiation with the city on lease renewal is beyond
comprehension. One year ago, not one of us would have supported the return of the marina or
parking lot to the city, but present post policy at this time has changed our minds.
We had hoped to resolve these issues short of litigation, but the post has shown no desire other
than, to "get rid of us no matter what it takes". In the last year I have received three different
contracts to sign. I did not sign and return the contract the sent to me following the complaint
by my attorney. On October 21, 1997 1 was sent another contract which I did sign and return
on November 21, 1997 as I felt at this time the Post was ready to use any excuse to evict me.
On January 26, 1998 1 received a letter from the post that they were going to take further
action because they have not received the signed contract we did return the previous
November. We contacted the post by telephone that day and offered to come down and sign
another copy of the contract immediately. We were told that would not be necessary and we
would be mailed a new contract. We received and returned the new contract on January 30.
The very next day we received an eviction notice dated January 2, 1998 for failing to return
the contract Ms matter was resolved following a discussion in person with an overtly hostile
Post staff member.
if it is indeed the desire by Post 291 to reduce or eliminate the dry storage renters as we
suggest, they have already been somewhat successful as a number have already quit in disgust.
We realize the Post has a large degree of latitude in the administration of the facility but they
also have a responsibility to operate in a fair and even handed mamer.
Respectfully Yours
Robert Lorenzini
cc Tony Mellum
Robert H Bumham
Mike Barnes,
PO Box 4001
Balboa, CA 92661
December 28, 1997
An Open Letter to the City of Newport Beach:
it is with regret that after ten years, I am not willing to continue
my membership in the American Legion. It has become apparent that
a few officers of the legion seem to think that this publically owned
land is their private club.
It appears that the city, has no interest in obtaining the money
owed to them. The city's policy of sharing "the collections from the
marina that the city owns, and allows the legion tooperate, have led
to a few officers of the legion acting as both landlord and tenet. They
set their own rent rates and decide who is eligible for a slip. There -
are several legion officials and employees living in the marina who do
not pay any fee for the live -aboard expenses. Some officers have
lived in the marina for five years, and have never paid any fee. Many
of the vessels that are used as homes, have no insurance, a violation
of the city's rules. The liability to the city for allowing this situation
invites lawsuits. These officers enjoy cable TV, private parking lot,
private showers. These officers have it pretty good. They set the
rules. Some of these officers have, in the past, lived for a year or so
without even paying slip rental fees. There are those who aren't
officers and who don't pay slip rental fees. Some of the boats have
been seized and sold at auction. Again, some of the officers of the
legion act as both seller and buyer. The city should get half of the
revenue from the sale of these boats. When a city official was asked
a uf
bo -these and other type revenues that come from the legion, the
official responded, "We can't tell,�we never had an audit from the
legion". The internal legion audit was done by an officer of the legion.
The legion controls about acre of parking used only by a few of
its officers. The lot should be open and metered like the Elks Club
- ' - - . - I V_ -
lot. The legion claims a need for the parking for club functions. So
do the Elks need parking for their functions, but they get by with
metered parking. The number of members of the legion that live in
k v%#4
NBis less -LI [an one hut jured. Tlheim-,ad-nthe surrounding
neighborhood is obvious ifthere were 75 or so parking spaces added
near the beach and businesses. The marina renters wouldthen have
access like everyone else.
The marina slips and how they are allocated is another area
that needs a closer look. The number of present and past offIlicers of
the legion, and those given slips on specials subleases use the
majority of the slips in the marina. The legion officers claimed a five
year waiting list and have collected a non-refundable fee for getting
on thic-B 11;10-t. Officers of the legion get a slip without a wait. This fee
should be refunded to all those that have been on the list. Does the
city get a portion of this fee?
I was surprised to read in the legion newspaper that two city
officials met with legion officers and the city assured the legion that
things would remain basically the same. This meeting appears to be
a violation of the Brown Act. I was following the redevelopment plans
and was waJtiing for public discussion on the issue to voice my
concerns about the legion continuing to manage the marina. This
public discussion never occurred.
The city should audit the legions' management of the marina.
This is public land, and to have it controlled by such a few people for
their own benefit is wrong. —1 his situation should be changed.
Mike Barnes
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MEMORADUM
Newport Beach Fire and Marine Department
Marine Environment Division
Date: July 1, 1997
To: Chief Tim Riley
From: Deputy Chief Tony Melum
Subject: American Legion Lease .'.�
Following is an outline of the American Legion Lease file. Because of the time
constraints, I wasr�t able to clean its up.
The Site
Briefly, the site encompasses 1.54 acres, 350 feet of water frontage and 109 feet of
street frontage. The original lease was signed in September in 1940, extended in
February in 1951, extended again in January of 1976 and terminates Marr -h 15,
2000. The physical plant consist of the American Legion Building, the parking
area which is comprised of 53 car spaces and 45 dry boat spaces, a small Boy
Scout hut, some storage garages and maintenance room, launch crane and
launch area, picnic area, a small sandy beach, approximately 330 feet of
bulkhead and 46 slips which calculate to approximately 1,255 feet of lineal
berthing feet Again, the lease expires in the year 2000 and provides in part that
the American Legion pay the City $300.00 per month for the building, $1,700.00
per year for the parking spaces, 40% of the gross revenue for the marina slips,
50% of the gross revenue from the dry boat storage and lockers. Section 14 of the
lease states "'Upon the expiration or termination of this lease any additions or
improvements made upon the demise present shall become the property of the
lessoe.
Audits
Section 19 provides,, "If any party deems it necessary at the end of the yearly
audit all rental rates may be negotiated and adjusted by mutual agreement of
both parties. The file does not reflect that this has ever been done. There was
one letter that indicated there had been an audit in 1983 of the parking revenue.
I was unable to contact Glenn Everroad to find out if there had been additional
audits but talked to Dan in Administrative Services and he was not aware of
any. I Spoke with Craig Bluell and he indicates that they give us a monthly
survey of the areas they are responsible for rentwise, then a yearly summary of
that He had no information on whether they had been audits or not
Rent
Their current income is based on the linear footage of the existing docks and the
number of dry storage spots. Slips are currently at $11.00 a foot., dry storage at
$4.40 a foot The gross rents received on the slips would be $165,660.00 and the
gross receipts on the dry storage would be $35,640.00, for a, gross total of
$201,300.00. Based upon the lease percentages, the City receives $84,084
annually. If the City did nothing and kept the rent at its current rate and took
over the marina, our gross would be $201,300. If we raised the slip fees to what
we are currently charging at the Balboa Yacht Basin our gross would be
$254,010. As far as the operation of the premises it could be managed by our
existing marina manager, however, it would probably be necessary to add at
least another 1/2 year of seasonal employee time and possibly upgrading the
position to full time. There would also be some M & 0 increased probably in the
20 to 30 thousand dollar range.
The Existing Marina
An inspection of the docks at the American Legion found that they are of wood
construction, with concrete pilings and the floats are styrofoam -cement covered.
The marina appears to be the original construction which took place in 1958 and
looks to be relatively well maintained, however, if s very old. It could be
maintained in its cu-rrent condition, serviceable and safe for 5 to 10 years based
on our experience with the Balboa Yacht Basin. If we elected to rebuild it, it
could be maintained during a loan application period, then demolished and
rebuilt using State Boating and Waterways funds. Currently, those monies are
available to governmental agencies at 4%. It would probably be prudent at that
time to look at the possibility of reconfiguring the existing marina. Right now
the marina is made up of 15 slips in the 30 foot range and 31 slips in the 25 foot
range. Experience around the harbor has indicated that the highest vacancy
rates are under 30 feet, so we should be considered reconfiguring the marina to
accommodate larger boats. In addition to reconfiguring, it might be desirable to
look at adding 35 to 40 slips west of the existing marina, in front of the marina
trailer park. It could most likely be done with a row of slips in the 40 foot range
without having to bulkhead the existing beach.
Consultant Studv
I looked through the excerpts that Peggy gave me regarding the consultants
study., on page 28 under "'American Legion:, they indicate in that there is only
one other public storage facility for boats on the peninsula and, in fact, all other
marinas are found on the opposite side of Newport Bay. There are a number of
small marinas, starting at the Cannery and going down to the Fun Zone. Under
the section dealing with the "'Hotel Marina", on page 1 of the report, in the first
paragraph under market considerations, states the Balboa Yacht Basin is
approximately 85 % occupied, currently at 98 % occupied. Again, the end of that
paragraph indicates that the peninsula offers only private docks that are not
available to the public, that is again not the case.
45
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- - - -----------
REVENUE STUDY
MARINAPARK
NEWPORT BEACH, CALIFORNIA
Prepared For:
THE CITY OF NEWPORT BEACH
Prepared By:
KEYSER MARSTON ASSOCIATES, INC.
JULY 1997
REVENUE STUDY
MARINAPARK
NEWPORT BEACH, CALIFORNIA
Prepared for:
THE CITY OF NEWPORT BEACH �
July 1997
Prepared By
KEYSER MARSTON ASSOCIATES, INC.
55 Pacific Avenue Mall 500 South Grand Avenue, Ste 1480 1660 Hotel Circle North, Ste 716
San Francisco, CA 94111 Los Angeles, CA 90071 San Diego, CA 92108
TABLE OF CONTENTS
EXECUTIVESUMMARY ............................................................................................................................... 1
PURPOSE AND BACKGROUND ........................................................................................................................... 1
METHODOLOGY............................................................................................................................................... 1
LAND USE RESTRICTIONS ................................................................................................................................ 1
USES CONSIDERED AND REVENUE CONCLUSIONS ............................................................................................. 2
ILLUSTRATIVE DEVELOPMENT SCENARIOS ......................................................................................................... 2
LEASE VERSUS SALE ISSUES ........................................................................................................................... 3
INTRODUCTION........................................................................................................................................... 5
BACKGROUND............................................................................................................................................ 5
ORGANIZATION........................................................................................................................................... 6
MAJORASSUMPTIONS .............................................................................................................................. 6
SECTIONI - SITE OVERVIEW ................................................................................................................... 9
1. ENVIRONS ............................................................................................................................................. 9
2. EXISTING USES .................................................................................................................................. 11
3. LAND USE LIMITATIONS .................................................................................................................... 13
SECTION 11 - REVIEW OF POTENTIAL USES ........................................................................................... 15
1. EATING AND DRINKING FACILITIES ................................................................................................. 17
2. HOTEL ................................................................................................................. * ................. *— ........... 19
3. CONVENIENCE RETAIL ............................................................................... I ....................................... 21
4. OFFICE ................................................................................... — ........................................................... 23
5. PARKING ............................................................................................................................................. 23
6. OWNERSHIP HOUSING ..................................................... I ................................................................ 25
7. RENTAL HOUSING .............................................................................................................................. 27
8. MARINAPARK (CURRENT USE) ....................................................................................................... �29
CONCLUSION OF POTENTIAL USES AND VALUE OF REVENUES ...................................................... 31
SECTION III - DEVELOPMENT SCENARIOS ............................................................................................ 32
1. BASELINE SCENARIO ...................... ................................................................................................. 32
2. SCENARIO A Partial Reconstruction ............................................................................................... 32
3. SCENARIO B Major Redevelopment ............................................................................................... 33
CONCLUSION OF POTENTIAL USE ......................................................................................................... 35
EXECUTIVE SUMMARY
Purpose and Background
This study prepared by Keyser Marston Associates, Inc. (KMA) is designed to assist the
City of Newport Beach in its evaluation of alternative land uses for the 10.71 acre
Marinapark property. The property is currently the site of a mobile home park,
American Legion Hall, Girl Scout meeting facility, a marina operated by the American
Legion, and Balboa Community Center. Additionally, portions of the site are used for
City recreational activities and public parking. The various leases for all the properties
at the site are scheduled to terminate at the same time, on March 31, 2000.
Methodology
KMA has examined a range of residential and commercial land uses for the site,
determined the extent of market support for each, and has estimated the land rent and
tax revenues (collectively the "revenues") which would accrue to'the City as a result of
each land use. Given that the site could be developed with a m ix of several uses, the
revenues for each land use are expressed as the per square foot, present value of the
sum of the revenues over the term of an assumed long term lease. The various
components of the revenues (base rent, percentage rent, sales tax, etc.) are discounted
at varying rates to reflect KMA's conclusions as to the risk associated with each
revenue category. From these unit values, an illustrative mix of uses for the site have
been developed to derive a likely range of values.
Land Use Restrictions
The potential reuse of the property is limited by a number of regulatory restrictions,
including the following:
Revenue Study Draft Report
Marinapark Site July 28, 1997
Tidelands Designation: Approximately two-thirds of the property is subject to
State Tidelands Trust restrictions, eliminating any residential use from that
portion of the site.
Charter Restrictions: The City Charter permanently restricts a portion of the site
to public use.
Local Coastal Plan: The plan requires coastal views and designates the area as
Recreational and Environmental Open Space.
General Plan: Also designates the area as Recreational and Environmental
Open Space.
Uses Considered and Revenue Conclusions
Based upon KMA's evaluation of local market conditions, KMA,has identified a set of
uses for which near term development is indicated. Chart A presents the uses and
compares the value of per square foot revenues (ground rent and tax revenues) over
the assumed lease term. Generally, residential and hotel uses represent the highest
total revenue potential. The extent of commercial development on the Tidelands
property can negatively impact the value of the non -Tidelands property by obstruction
of the views from this portion of the property.
Illustrative Development Scenarios
KMA has developed three illustrative development scenarios portraying the range in
revenue which could be generated by the property. These are summarized on Charts B
and C and include the following:
Revenue Study Draft Report
Marinapark Site July 28, 1997
2
$70.00
$60.00
$50.00
$40=
$30.00
$20.00
$10.00
$0.00
SUMMARY OF POTENTIAL USES
PRESENT VALUE PER SQ. FT.
------------------------------------------
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
--- --- ----------------------
- - - - - - - - - - - - - - - - - - - - - - -
--- ---- --- ------
w
CHART A
w
SUMMARY OF USES
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REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
w
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CITY OF NEWPORT BEACH
W Z'
Z 0
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0
ESTIMATED PRESENT VALUE
OF
REVENUES PER SQ. FT.
LAND USE
GROUND RENT
OTHER REVENUE TOTALREVENUES
1 HOTEL
$25.80
$37.20
$63.00
2 OWNERSHIP
43.90
3.60
47.50
HOUSING
3 RESTAURANTS
34.40
11.10
45.50
4 CONVENIENCE
39.60
1.40
41.00
RETAIL
5 RENTAL
23.20
1.80
25.00
HOUSING
6 EXISTING USES
24.00
0.00
24.00
7 PARKING
7.80
0.20
8.00
$70.00
$60.00
$50.00
$40=
$30.00
$20.00
$10.00
$0.00
SUMMARY OF POTENTIAL USES
PRESENT VALUE PER SQ. FT.
------------------------------------------
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
--- --- ----------------------
- - - - - - - - - - - - - - - - - - - - - - -
--- ---- --- ------
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; CHART A; DATE: 7/28/97; JJL
MOTHER REVENUE
0 GROUND RENT I
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KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; CHART A; DATE: 7/28/97; JJL
MOTHER REVENUE
0 GROUND RENT I
CHART B
ESTIMATED NET REVENUES -ANNUAL REVENUE
ESCALATING AT 2.5% PER YEAR
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
ESTIMATED
DEVELOPMENT SCENARIO NET REVENUES
BASELINE SCENARIO
$821,000
SCENARIO A - PARTIAL RECONSTRUCTION $1,044,000
SCENARIO B - MAJOR REDEVELOPMENT $1,378,000
ESTIMATED ANNUAL REVENUES
$2,400,000
$2,200,000 L L L i 1 1 -1 -1 -j _j - - -
t I I I I I I I 1 1 1 1 1
$2,000,000 - - - -- - - 4 - - - - - - - - - -- - -
$1,800,000
r_ 7 7-- T T 7 7 - - - I - - - I - - - - - - -
$1,600,000 L I- - i. - - 1 -1 j -i
$1,400,000 - - - - - - - - - - - -
$1,200,000
$1,000,000 4- - - 4- - - 4-
$800,000 T_ T' 7 T T 7 7 7 7 7 -1 - - -
$600,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
—*-- BASELINE SCENARIO --M— SCENARIO A A SCENARIO B I
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; CHART B; DATE: 7/28/97; JiL
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Baseline Scenario: Assumes current uses and lease terms with mobile home
park and marina rents increased to market. The scenario represents
approximately $821,000 annually in estimated net revenues and a net present
value of $8.8 million.
Scenario A: Assumes partial reconstruction in which the mobile home park is
eliminated and replaced with hotel and restaurant uses. All other uses are
maintained. f d'I
77 7
t. The scenario represents approximately $1.04 million annually
in estimated net revenues and a net present value of $11.6 million.
Scenario B: Assumes all existing uses except the American Legion uses are
eliminated. Non -Tidelands property (Balboa Boulevard frontage) is rental
housing and Tidelands is developed with a hotel and restaurant. "Oh, Irl�
ht
ar
This scenario represents approximately $1 38 million annual y in
estimated net revenues and a net present value of $15.9 million.
30th Street Architects has prepared conceptual site plans illustrating Scenarios A
and B.
Lease Versus Sale Issues
The analysis revealed that there is a significant value discount in the market for
residential lots leased as compared with the fee value if sold. The City may wish to
consider sale of the non -Tidelands property. The analysis concludes that reinvestment
of a portion of the sales proceeds and investment earnings may more than offset the
Revenue Study
Marinapark Site
3
Draft Report
July 28, 1997
appreciation in the value of the property, and generate an equal or greater amount of
annual revenue.
Revenue Study Draft Report
Marinapark Site July 28, 1997
INTRODUCTION
This report summarizes Keyser Marston Associates, Inc. (KMA) analysis of the 10.71
acre property owned by the City of Newport Beach (City) commonly referred to as
Marinapark. Marinapark is located on the Balboa Peninsula on the bay side of Balboa
Boulevard between 15th and 19th Streets in the City of Newport Beach.
The purpose of the analysis summarized herein is to analyze the City's revenue
potential generated by leasing the site under various land use alternatives. As used
herein, revenues related to the leasing of the subject site include both anticipated
ground lease revenues as well as tax revenues accruing to the City, including transient
occupancy tax, sales tax, and property tax, where applicable.
BACKGROUND
Pursuant to City Council policy, prior to entering into negotiation to renew or extend any
ground lease, a revenue study for alternative uses of the property is to be undertaken.
The subject site is currently leased to a number of entities including the American
Legion, the Girl Scouts, the Power Squadron, a community group which occupies the
Balboa Community Center, and individual lessees in the Marinapark Mobile Home Park.
All the leases expire in the year 2000 with the exception of the Power Squadron, which
is currently on a month-to-month lease. The City has requested that KMA undertake a
study in order to identify total revenues the City could reasonably expect from
alternative uses.
Revenue Study Draft Report
Marinapark Site July 28, 1997
5
ORGANIZATION
The report is organized as follows. Following the introduction, which includes the major
assumptions used in the analysis, is Section I of the report. Section I presents an
overview of the site, including a description of the site, its environs, and land use
limitations. Section 11 presents a discussion of the potential uses for the site. The
analysis of the uses involves both an overview of market demand, potential revenues
generated by each use, and the appropriate size requirements (or constraints) for each
use. Based on the results in the previous sections, Section III presents three illustration
reuse alternatives with revenue projections and conclusions as to each.
MAJOR ASSUMPTIONS
It was necessary to make certain assumptions in completing this assignment including:
1 It is assumed that the property will be made available only under a long-term
lease (up to 55 years) where the sale of the property is not to be considered and
that neither the fee interest in the land nor the ground lease payments will be
subordinated. It should be noted that additional voter approval may be
necessary, as the City Charter only grants leases of up ears. Should the
t'
25 year restriction apply, the value for all uses will be materially educed.
"L�' - 74-x-
2. It is assumed that for those alternatives that involve a mix of land uses, that the
City, and not a developer, (lessee) would undertake the necessary parcelization
and construction of common infrastructure, i.e., access roads, on-site utilities,
etc. Appropriate deductions from finished land value have been made to reflect
those infrastructure costs.
Revenue Study
Marinapark Site
R
Draft Report
July 28, 1997
3. The beach front area immediately in front of Marinapark must remain a public
beach in accordance with Section 1402 of the City Charter which states: "there
shall be reserved forever to the people use of a strip of bay front land above
mean high tide not less than 85 feet in depth of City -owned waterfront
property..." KMA has assumed, for its analysis, that 83,335 square feet (1.91
acres) of the site must remain as public beach. Thus, the maximum leaseable
area of the subject site is 8.8 acres.
4. All necessary off-site infrastructure (storm drain, sewer, etc.) is in adequate
capacity at the site to meet the needs of the identified uses.
5. No new development fees impacting potential uses at Marinapark will be enacted
by the City of Newport Beach.
6. None of the uses proposed herein are assumed to result in an increased traffic
flow sufficient to require additional improvements to Balboa Boulevard or other
arterials serving the area.
7. The relocation of existing tenants will not impede the development of the subject
site for any of the uses identified herein. No relocation costs have been
assumed.
8. Maps found in this report are provided for reader reference purposes only. No
guarantee as to their accuracy is expressed or implied.
9. The analysis contained in this report is based, in part, on data from secondary
sources. While KMA believes that these sources are accurate, KMA cannot
guarantee their accuracy.
Revenue Study
Marinapark Site
7
Draft Report
July 28, 1997
10. The analysis and conclusions in this report assumes that'neither the local nor
national economy will experience a major recession. If an unforeseen change
occurs in the economy, the conclusions contained herein may no longer be valid.
11. The analysis, opinions, recommendations and conclusions are our informed
judgment 1pased on market and economic conditions as of the date of this
analysis./Due to the volatility of market conditions and complex dynamics
influencing the economic situations and conditions of the development industry,
conclusions and recommended actions contained within this report should not be
relied upon as sole input for final business decisions regarding current and future
use of the property.
Revenue Study
Marinapark Site
.1
Draft Report
July 28, 1997
SECTION I - SITE OVERVIEW
This section of the report presents an overview of the site environs, existing uses and
land use controls that ultimately impact the selected land use alternatives analyzed by
KMA.
1. ENVIRONS
The subject site is located in the southwestern portion of the City on the Balboa
Peninsula. Local access to the site is provided by Newport Boulevard which turns into
Balboa Boulevard and is the main connection with the Costa Mesa Freeway (California
State Highway 55) and Pacific Coast Highway. The site fronts Newport Bay between
15th and 19th Streets and is in a transition zone between residential and commercial
uses. Immediately adjacent are small commercial uses, a 10 unit apartment complex
and a small Southern California Edison facility. The general location of Marinapark is
illustrated in Figure 1.
Fronting Newport Bay, Marinapark commands sensational views -of the Newport Harbor
to the north and, when at the top of a two or three story building, views of the Pacific
Ocean are po ssible to the south. Within the Peninsula, Marinapark is centered
between two commercial concentrations, the commercial/eating and drinking complex
encompassing the Newport Pier located approximately two blocks to the west, and the
i
Balboa Fun Zone located approximately one-half mile from the end of the Peninsula
I
near the Balbo i a Pier. This area of the Peninsula is a major tourist attraction with its
proximity to the Balboa Pavilion and Balboa Ferry. A third small commercial complex
has been identified on 15th Street which abuts the subject site. The majority of the
retail stores adjacent to the subject site are tourist oriented, comprised of bathing suit
shops, beach equipment rentals, clothing stores, surf shops, etc., with the
neighborhood serving retail located further to the west. The property is unique in that it
Revenue Study Draft Report
Marinapark Site July 28, 1997
9
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is potentially one of the last major undeveloped pieces of property on the Balboa
Peninsula.
In reviewing potential uses for Marinapark, KMA compared the demographics on the
Peninsula with the demographics of the City as a whole (Table 1). In general, the
Peninsula is composed of younger residents with a small household size and a per
capita income 10% lower than the City as a whole. The Balboa Peninsula has
approximately 10,000 full-time residents which is nearly 15% of the City's full-time
population of 67,000. Per capita income on the Peninsula is $51,100, while per capita
income in the City is $56,900. Household income is over $106,000 per year. The
Balboa Peninsula has a large renter population compared to the rest of the City of
Newport Beach. Approximately 63% of the units on the Peninsula are renter occupied.
Comparatively, the City is only 44% renter occupied. The large proportion of renter
occupied households coincides with the younger median age of 33 that is prevalent on
the Peninsula. This compares to a median age of 35 in the City.
The Balboa Peninsula's economy is highly seasonal, with peak levels of activity
occurring during the summer months and on prime non -summer holidays. While the
permanent resident population base for the City is 67,000, the summer population base
is estimated at approximately 100,000. Although precise figures are not available, it is
safe to assume that a large percentage of the additional 33,000 summertime visitors to
the City spend some time on the Peninsula. Permanent residents, part-time residents
and visitors all contribute to booming restaurants, lack of parking, and crowded
sidewalks on the Peninsula during the summer. In contrast, during the winter months
as part-time residents and visitors leave the Peninsula until the following summer,
business closures and reduced operating hours are common.
Revenue Study
Marinapark Site
10
Draft Report
July 28, 1997
TABLE 1
1995 DEMOGRAPHICS
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
POPULATION
BALBOA PENINSULA 10,000
CITY EXCLUDING PENINSULA 57,000
CITY OF NEWPORT BEACH 67,000
POPULATION
80,000
60,000
40,000
20,000
0
BALBOA PENINSULA CITY EXCLUDING CITY OF NEWPORT
PENINSULA BEACH
PER CAPITA INCOME
BALBOA PENINSULA $51,100
CITY EXCLUDING PENINSULA $57,917
CITY OF NEWPORT BEACH $56,900
AVERAGE HOUSEHOLD INCOME
BALBOA PENINSULA $106,200
CITY EXCLUDING PENINSULA $130,605
CITY OF NEWPORT BEACH $126,400
MEDIAN AGE
BALBOA PENINSULA 33
CITY EXCLUDING PENINSULA 40
CITY OF NEWPORT BEACH 35
MEDIAN AGE
45
40
- - - - - - - - - - - - - - - - - - - - - - - - - -
35
- - - - - - - - - - - - - - - - - - - - - -
30
- - - - - - - - - - - - - - -
25
20
- - - --- - - - - -
AVERAGE HOUSEHOLD INCOME
BALBOA PENINSULA $106,200
CITY EXCLUDING PENINSULA $130,605
CITY OF NEWPORT BEACH $126,400
MEDIAN AGE
BALBOA PENINSULA 33
CITY EXCLUDING PENINSULA 40
CITY OF NEWPORT BEACH 35
MEDIAN AGE
45
40
- - - - - - - - - - - - - - - - - - - - - - - - - -
35
- - - - - - - - - - - - - - - - - - - - - -
30
- - - - - - - - - - - - - - -
25
20
- - - --- - - - - -
15
- - - - - - - - - - - - - - -
10
- - - - - - - - - - - - - - -
5
BALBOA CITY EXCLUDING CITY OF
PENINSULA PENINSULA NEWPORT BEACH
PER CAPITA INCOME
$60,000
$58,000 - - - - - - - - - - - - - - - - - - - - - - - - - -
$56,000 - - - - - - - - - - - - - - - - - -
$54,000 - - - - - - - - - - - - - - - - - -
$52,000 - - - - - - - - - - - - - - - - - -
$50,000
$48,000 - - - - - -
....... ... .......
....... .....
tl ...... ..
$46,000 ......
BALBOA PENINSULA CITY EXCLUDN CITY OF NEWPORT
PENINSULA BEACH
AVERAGE HOUSEHOLD SIZE
BALBOA PENINSULA 2.1
CITY EXCLUDING PENIN SULA 2.2
CITY OF NEWPORT BEACH 2.2
AVERAGE HOUSEHOLD SIZE
2.3
2.2 - - - - - - - - - - - - - - - - - -
2.2 - - - - - - - - - - - - - - - - - -
2.1 - - - - - - - - - - - - - - - - - -
2.1
2.0
BALBOA CITY EXCLUDING CITY OF
PENINSULA PENINSULA NEWPORT BEACH
AVERAGE HOUSEHOLD INCOME
$140,000
$120,000 - - - - - - - - - - - -
$100,000
$80,000
$60,000
...........
$40,000
$20,000 ..
$0 ..........
BALBOA CITY EXCLUDING CITY OF
PENINSULA PENINSULA NEWPORT BEACH
SOURCE: URBAN DECISIONS SYSTEMS, INC. AND NEWPORT BEACH VISITORS BUREAU
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; DEMOGRAPHICS; DATE: 7/28/97; JJL
SOURCE: URBAN DECISIONS SYSTEMS, INC. AND NEWPORT BEACH VISITORS BUREAU
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; DEMOGRAPHICS; DATE: 7/28/97; JJL
2. EXISTING USES
The existing uses at Marinapark are described below and illustrated in Figure 2. A
summary of current lease term is included in the appendix. The uses are as follows:
Mobile Home Park (4.27 acres, 49% of net site area)
The Marinapark Mobile Home Park is composed of 60 mobile home spaces, 58
of which are individually leased and the balance occupied by the on-site
managers. Within the mobile home park there is limited parking for residents
and visitors. Approximately 25 mobile home spaces have unobstructed views of
the Bay, the remainder of the spaces have either no view or partial views. It
should be noted that only 8 of the 58 available spaces are occupied full-time by
the leasees. All other leasees use their mobile homes as "second" homes.
Metered Parking (70 parking spaces, .52 acres, 6% of net site area)
There are two city -owned metered parking lots at Marinapark. At the main
entrance to the mobile home park (located at the intersection of Balboa
Boulevard and 18th Street) is a 23 space city parking lot and at the western end
of the subject property is a 47 space city lot. This lot provides direct access to
the Newport Harbor and is located along West Bay Avenue between 18th and
19th Streets.
American Legion (1.35 land acres, 15% of net site area)
The American Legion parcel, immediately east of the mobile home park, contains
the American Legion Hall, a 62 -space parking lot, a marina with 47 slips and a
Revenue Study
Marinapark Site
11
Draft Report
July 28, 1997
52 -space dry boat storage facility. The slips and dry storage spaces are made
available for lease to the general public by the American Legion.
Las Arenas Park and "Veterans Memorial Park" (2.11 acres, 24% of net site
area)
Located at the east end of the property fronting Balboa Boulevard is Las Arenas
Park, operated by the City of Newport Beach. The park provides four lighted
tennis courts, a half basketball court and a playground area. A paved sidewalk
bisects the Park and extends toward Newport Bay and separates the mobile
home park from the American Legion, both of which are at the back (waterfront)
side of the property. This sidewalk also leads to storage for several small boats
parked on the sand.which are used by the 16th Street Sailing Base. The 16th
Street Sailing Base provides weekend sailing lessons throughout the summer.
In addition, there is an open space area immediately behind the American
Legion Hall on 15th Street known as the Veterans Memorial Park which is
sometimes used for parking.
Other (.55 acres, 6% of net site area)
Abutting the mobile home park are two buildings on Balboa Boulevard, the
Balboa Community Center, which formerly housed the Nautical Museum, and is
currently used for Community Services classes and by the Power Squadron, a
community group that currently has a month-to-month lease with the City, and
the Neva B. Thomas Girl Scout House. The two buildings are separated by a
remote parking lot designated for Girl Scout House parking. Both buildings are
single story, in average to above average condition and total 24,000 square feet.
Other recreational activities taking place on the subject site include sailing
Revenue Study
Marinapark Site
12
Draft Report
July 28, 1997
lessons, tennis, recreational programs, Balboa Community Center classes, and
Power Squadron activities. There is also a public restroom near 19th Street that
serves the strip of public beach between 16th and 19th Streets.
3. LAND USE LIMITATIONS
The potential uses to which the subject site can be used are controlled (or influenced)
by the numerous State and City regulatory restrictions. The major factors that govern
the uses are as follows:
Fundamental to the assessment of use opportunities is the
fact that a recent study undertaken by Boundaries Unlimited for the City
revealed that nearly two-thirds of Marinapark is located within the
Tidelands.
%Two
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Furthermore, KMA's discussions with the State Land
........ ..
Commission advise that the State clearly views timeshares, although
often used by visitors, as a residential use.M@�����
the development of timeshares and iid& itib
01
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N Local Coastal Program (LCP) - The LCP must be taken into account in
Revenue Study
Marinapark Site
determining land use patterns along the coastline. Marinapark is currently
designated for Recreational and Environmental Open Space. The LCP
specifically states that the existing mobile home park will be allowed until
13
Draft Report
July 28, 1997
the end of the lease, at that time the City can decide if the lease should be
renewed or if the property should be changed over to a public use.
The LCP also has designated the subject site as a Coastal View Area.
This policy is designed to maximize and protect coastal views from private
development that restricts views from the roadway. Therefore, KMA
assumes that special design measures will be considered for
development on the subject site'in order to protect its coastal views. It is
assumed that the local coastal plan would be amended as necessary, and
that commercial use on Marinapark would be allowed so long as coastal
views and open space concepts were implemented.
0 General Plan - Consistent with the Tidelands designation and the LCP,
Marinapark is designated as Recreational and Environmental Open Space
in the City of Newport Beach General Plan. However, this is inconsistent
with the zoning for the subject site which is described below.
Zoning - Lastly, the potential uses of the subject site are influenced by the
zoning designation of the site. Portions of the property are zoned as
follows: Multi -family Residential, Multiple Residential, and Planned
Community. It is assumed for purposes of this analysis that the property
will be rezoned as necessary to allow a change in use.
0 City Charter - As described earlier, the Charter reserves 1.9 acres, the
Revenue Study
Marinapark Site
area dedicated to expanded beach, for public use.
14
Draft Report
July 28, 1997
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SECTION 11 - REVIEW OF POTENTIAL USES
In developing land use scenarios and revenue projections for Marinapark, KMA initially
identified potential uses that could be appropriate for the subject site based upon its
location and physical characteristics, and reviewed the potential market support for
such uses. Based on this review, KMA then established the revenue characteristics
(both ground rent and tax revenues) for each use that appeared feasible by projecting
the revenues the City could expect to receive over a typical commercial ground lease
period (assumed to be 55 years).
The revenues are presented in present value terms, i.e., the future anticipated
revenues were discounted to determine their present worth. This present value is then
expressed in a value per square foot of land area by dividing the estimated present
value of the potential revenues by the required land area for each use using typical
density ratios. It should also be noted that the projection of revenues have included,
where appropriate, an allowance for transfer of sales "Transfer" refers to revenues from
sales generated elsewhere in the City which would be transferred to the site" would not
produce new revenues to the City. As such, the revenues shown are net of KMA's
assessment of the transfer.
In calculating the present value, the following assumptions have been made:
I . Revenues such as transient occupancy tax, sales tax, and ground lease
payments which are based on sales or gross rent have been escalated at 3%
annually to reflect an assumed inflation rate over the projection period.
2. Residential ground lease payments related to ownership housing are assumed to
increase only a modest 1 % per year over a 55 -year period (as discussed below).
Revenue Study Draft Report
Marinapark Site July 28, 1997
15
3. Ground lease payments from commercial uses that are not based on sales or
rents are assumed to increase 15% every 10 years.
4. Property tax revenues have been escalated at 2% per year.
5. In determining present value, the revenues have been discounted at the
following rates. The variation in the discount rates reflects the uncertainty
associated with future value of revenues based on sales.
M Ownership housing ground lease revenues (Fixed) 9%
Rental housing and commercial -
ground lease revenues (Gross Revenue Based) 10-1/2%
Other revenues (Productivity Based) 12%
0 Parking revenues (Use Based) 10%
It should be noted that the Newport Harbor is clearly lacking a feature that could attract
additional visitors to the Peninsula: a visitor serving marina. Currently, all visiting boats
must either anchor (or tie up) to one of the buoy's in the Harbor. The concept of a
visitor serving marina allows a place for boats to dock overnight, while providing
bathrooms, showers, electricity, and other amenities on site. Similar facilities are found
in both San Diego and Dana Point charging rates between $12 to $15 per night.
With the majority of a visitor serving marina use being located on the water, only a small
amount of land area is required to accommodate this use. KMA has assumed that no
more than 1,000 to 2,000 square feet would be required for the necessary on shore
facilities. Thus, to the extent that such a visitor serving marina is constructed, it should
Revenue Study
Marinapark Site
16
Draft Report
July 28, 1997
TABLE 2
ESTIMATED PRESENT VALUE
RESTAURANT USE
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS:
RESTAURANT SIZE
LOW
4,000 SQ. FT.
SALES PER SQ FT.
$500 TO $600 PER SQ. FT
SALES PER RESTAURANT PER YEAR
PER YEAR
$2.0 TO $2.4 MILLION
GROUND LEASE
3.0 TO 3.5% OF SALES
INFLATION RATE
LOW
3.0%
DISCOUNT RATE - GROUND RENT
10.5%
DISCOUNT RATE - OTHER REVENUE
PER SQ. FT.
12.0%
ANNUAL GROUND RENT INCL. % RENT
LOW
HIGH
LOW (1)
$60,000
PER SITE PER YEAR
HIGH (2)
$84,000
PER SITE PER YEAR
PRESENT VALUE PER SQUARE FOOT(')
7.80
PRESENT VALUE OF PROPERTY TAX(6)
LOW
$28.80
PER SQ. FT.
HIGH
$40.00
PER SQ. FT.
OTHER REVENUES
ESTIMATED SALES TAX
LOW
$16,000
PER YEAR
HIGH
$19,200
PER YEAR
PRESENT VALUE PER SQUARE FOOT (5)
LOW
$6.50
PER SQ. FT.
HIGH
$7.80
PER SQ. FT.
TOTAL REVENUE PER SQUARE FOOT OF LAND AREA
LOW
HIGH
PRESENT VALUE OF GROUND RENT
$28.80
$40.00
PRESENT VALUE OF OTHER REVENUE
6.50
7.80
PRESENT VALUE OF PROPERTY TAX(6)
$4.10
4.10
TOTAL
$39.40
$51.90
ROUNDEDTO
$39.00
$52.00
LOW ASSUMES $500/SQ. FT. SALES AND 3.0% ALLOCATED TO GROUND RENT
HIGH ASSUMES $600/SQ. FT. SALES AND 3.5% ALLOCATED TO GROUND RENT
(3) VALUE REDUCED BY 5% TO REFLECT EFFECT OF STABILIZATION PERIOD
(4) PRESENT VALUE DIVIDED BY 25,000 SQ. FT. OF REQUIRED LAND AREA, ROUNDED TO NEAREST S.25, AND REFLECTS
INCLUSION OF PERCENTAGE RENT
PRESENT VALUE DIVIDED BY 25,000 SQ. FT. OF REQUIRED LAND AREA; VALUE REDUCED BY 5% TO REFLECT
EFFECT OF STABILIZATION PERIOD; INCLUDES A 10% TRANSFER ALLOWANCE
ASSUMES PROPERTY TAXES ON $250 PER SQUARE FOOT ROUNDED TO THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -RESTAURANTS; DATE: 7/28/97; JJL
not limit or restrict the development opportunities on the subject properties for other
uses. The decision to add such a marina should then be based on the relative merits
and cost of such a facility. The economics of such a use have been omitted from this
analysis.
The potential uses and evaluation of the uses considered for Marinapark are as follows.
1. EATING AND DRINKING FACILITIES
a. Market Considerations
The current eating and drinking facilities on the Peninsula offer, for the most part,
moderate dining that appeals primarily to the younger population and visitors to the
Peninsula. There are numerous establishments that provide entertainment as well as
dining. The strong economic health of the eating and drinking facilities located on the
Balboa Peninsula is a reflection of tourism, the beach/ocean environment and the
perception that the Peninsula is an entertainment "place to be." ,
An analysis of the restaurants located on the Peninsula suggest sales productivity
substantially above industry norms. Based on the current sales volumes and lack of
significant vacant restaurant space, there appears to be adequate support for
restaurant expansion at the subject site. While somewhat removed from existing
commercial concentrations, the excellent views of the water from the property clearly
suggest that destination type restaurants are likely candidates for the subject site.
Revenue Study Draft Report
Marinapark Site July 28, 1997
17
b. Size Consideration
While the site is uniquely located and has the necessary access characteristics for
destination type restaurants, it is unlikely the entire site at 8.8 net acres could be
developed for restaurant uses in the near-term. Assuming restaurant development and
associated parking at a floor area ratio (FAR) of .16 to 1.0, i.e., 7,000 square feet of
restaurant space per acre, in all likelihood, not more than 2 acres of land can be
developed for restaurants in the near-term, i.e., a total of ±14,000 square feet of
restaurant space.
C. Land Revenues
Typically, restaurant ground leases provide for a base rent against a percentage of
gross revenues, generally 3% to 3.5%. The estimate of revenues assuming the City
would receive 3% to 3.5% of gross sales are shown in Table 2. A range of sales is
provided to reflect the minimum and maximum ground lease payment associated with
this use. As indicated, based on the assumptions identified Jn Table 2, when the
present value of the ground lease payments are estimated, the value is $28.80 to
$40.00 per square foot of land designated for restaurant use.
d. Other Revenue
The main sources of "other" revenue to be generated by an eating and drinking facility
is sales and property tax revenue. As shown in Table 2, the present value estimate of
sales tax revenue when allocated over the appropriate land area results in a value per
square foot of $6.50 to $7.80. This is after deducting for an assumed 20% transfer of
sales. Discounted at 12%, the present value of property tax revenues are estimated at
$4.10 per square foot of land area.
Revenue Study
Marinapark Site
18
Draft Report
July 28, 1997
e. Total Revenues
The estimated present value of the anticipated ground lease payments, and City's
share of sales and property tax revenues results in a revenue value of between $39.00
and $52.00 per square foot.
2. HOTEL
a. Market Considerations
While there are no major hotels on the Peninsula, KIVIA identified five smaller
motel/hotels. These hotels have an average "published" (or rack) room rate of over
$200 per night during the summer months. The most popular lodging facilities on the
Peninsula are the bed and breakfast's located on the oceanfront.
KMA field surveys revealed extremely high demand during the peak summer months of
June through September. In addition, weekends throughout the year remain at high
occupancy levels. In the non -peak periods both occupancy level and published room
rates are substantially lower, with room rates often under $100 per night. The annual
room sales for the hotels on the Peninsula is estimated by KMA at $30,000 per room.
b. Size Considerations
There are no specific size constraints to hotels, with facilities in the market place
ranging from bed and breakfasts often under 10 units, to larger hotels in excess of 250
rooms. On the Peninsula, with the lack of available land and seasonal demand, the
hotels tend to be small, between 10 and 34 rooms. Even with the excellent views
afforded by the property, it is unlikely that the entire property completely could be
Revenue Study
Marinapark Site
19
Draft Report
July 28, 1997
devoted to hotel use (±500 room capacity), given access, view considerations, and
height restrictions. For projection purposes, it is assumed that 75 to 100 hotel rooms
could be developed at the subject site. This would require up to ±2 acres of land and
could take the form of one moderate size hotel or two or three small hotels.
C. Land Revenues
The estimated land (ground lease) revenues generated by hotels on the subject site, is
based on an allocation of between 5.0% to 7.5% of room sales to ground rent. This
range assumes a good quality hotel but with only limited amount of common areas and
no food and beverages served. Based on an assumed annual room sales of $30,000
per room that could result with a bay front location and at a density of 50 rooms per
acre, the present value of the anticipated ground lease. revenue is estimated at between
$20.70 and $30.80 per square foot of land area as shown in Table 3.
d. Other Revenues
Table 3 also presents an estimate of the present value of other r e-evenues which consist
of transient occupancy tax revenues and sales tax revenues generated by hotel guests;
and property tax revenues. For projection purposes, a 20% transfer allowance has
been made in projecting transient occupancy tax revenues and other revenues. The
present value estimate of the transient occupancy tax revenues and the sales tax
revenues total $31.00. Property tax revenue is estimated to have a present value of
$6.30 per square foot.
Revenue Study
Marinapark Site
20
Draft Report
July 28, 1997
TABLE 3
ESTIMATED PRESENT VALUE
HOTEL USE
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS
HOTEL SIZE
SALES PER ROOM
SALES PER HOTEL PER YEAR
GROUND LEASE
DISCOUNT RATE - GROUND RENT
DISCOUNT RATE - OTHER REVENUE
INFLATION RATE
ANNUAL GROUND RENT INCL. % RENT
LOW
HIGH
PRESENT VALUE PER SQUARE FOOT (3)
LOW
HIGH
OTHER REVENUE
ASSUMPTIONS
TAXABLE SALES
GUEST PARTY SIZE
ASSESSED VALUE
TRANSIENT OCCUPANCY TAX RATE
TRANSIENT OCCUPANCY TAX
SALES TAX(')
TOTAL
50 ROOMS PER ACRE
$30,000 PER ROOM PER YEAR
$1,500,000 PER HOTEL PER YEAR
5.0 TO 7.5% OF SALES
10.5%
12.0%
3.0%
$75,000 PER HOTEL PER YEAR
$112,500 PER HOTEL PER YEAR
$20.70 PER SQ. FT.
$30.80 PER SQ. FT.
$75.00 PER PERSON PER DAY
2 PEOPLE PER ROOM
$75,000 PER ROOM
10%
$150,000 PER HOTEL PER YEAR
16,000 PER HOTEL PER YEAR
$166,000
PRESENT VALUE PER SQUARE FOOT AREA(') $31.00 PER SQ. Fr.
TOTAL REVENUE PER SQUARE FOOT OF LAND AREA
M LOW ASSUMES 5% ALLOCATED TO GROUND RENT
(2) HIGH ASSUMES 7.5% ALLOCATED TO GROUND RENT
(3) PRESENT VALUE DIVIDED BY 43,560 SQ. FT OF LAND AREA, ROUNDED TO NEAREST $.25, AND REFLECTS
INCLUSION OF PERCENTAGE RENT; VALUE REDUCED BY 5% TO REFLECT EFFECT OF STABILIZATION PERIOD
(4) ASSUMES 60% YEAR ROUND OCCUPANCY AND INCLUDES ALLOWANCE FOR EXPENDITURES OUTSIDE OF THE CITY
(5) PRESENT VALUE DIVIDED BY 43,560 SQ. FT OF LAND AREA; VALUE REDUCED BY 5% TO REFLECT STABILIZATION
PERIOD; INCLUDES 20% TRANSFER ALLOWANCE ON HOTEL ROOM SALES
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -HOTEL; DATE: 7/28/97; JJL
LOW
HIGH
PRESENT VALUE OF GROUND RENT
$20.70
$30.80
PRESENT VALUE OF OTHER REVENUE
31.00
31.00
PRESENT VALUE OF PROPERTY TAX
6.30
6.30
TOTAL
$58.00
$68.10
ROUNDEDTO
$58.00
$68.00
M LOW ASSUMES 5% ALLOCATED TO GROUND RENT
(2) HIGH ASSUMES 7.5% ALLOCATED TO GROUND RENT
(3) PRESENT VALUE DIVIDED BY 43,560 SQ. FT OF LAND AREA, ROUNDED TO NEAREST $.25, AND REFLECTS
INCLUSION OF PERCENTAGE RENT; VALUE REDUCED BY 5% TO REFLECT EFFECT OF STABILIZATION PERIOD
(4) ASSUMES 60% YEAR ROUND OCCUPANCY AND INCLUDES ALLOWANCE FOR EXPENDITURES OUTSIDE OF THE CITY
(5) PRESENT VALUE DIVIDED BY 43,560 SQ. FT OF LAND AREA; VALUE REDUCED BY 5% TO REFLECT STABILIZATION
PERIOD; INCLUDES 20% TRANSFER ALLOWANCE ON HOTEL ROOM SALES
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -HOTEL; DATE: 7/28/97; JJL
e. Total Revenues
KMA's estimate of total revenues generated by hotel use is presented in Table 3. As
shown, the present value of total revenues is estimated at $58.00 to $68.00 per square
foot of allocated land area.
3. CONVENIENCE RETAIL
a. Market Considerations
A survey of retail space on the Peninsula reveals a relatively low vacancy level. Retail
space on the Peninsula is leasing in the range of $1.25 to $1.75 per square foot per
month on a triple net basis. Both retail concentrations on either side of Marinapark are
tenanted with markets, coffee houses, laundromats, ice cream shops, beachwear and
beach equipment shops, etc. While low vacancies suggest that the Peninsula has a
strong retail base, the rental rates do not suggest a strong demand. In addition, KMA's
field survey reveals that the Peninsula is well served by a plethora of retail, uses. KMA
has not identified any significant missing retail tenant types suitab le for the subject site.
b. Size Considerations
It is unlikely that the market is strong enough to support retail development on the entire
site although limited development may be possible along the Balboa Boulevard
frontage. Furthermore, there appears to be no minimum size limitation. KMA has
assumed that 1.0 acre of land could be devoted to retail use. This would result in the
development of ±1 0,000 square feet of retail area at a FAR of .23 to 1.0.
Revenue Study
Marinapark Site
21
Draft Report
July 28, 1997
C. Land Value
KMA found few recent commercial land sales that would be a good indicator of land
value. An upper range is, however, established by the recent land sale for the
construction of a McDonalds restaurant at slightly under $50 per square foot. This
site's location is, however, superior to the subject property.
In determining the land revenues for retail use at the subject site, KMA assumed that
under a ground lease, the City would receive an amount equal to 15% of rents. Using
this as a basis, the estimated ground lease revenues (in present value terms) is
estimated at approximately $39.60 per square foot of land area.
d. Other Revenues
KMA would not expect that small retail development at the subject site would generate
much in new sales tax revenues, i.e., the majority of sales tax revenues would be
transferred from existing uses. The City would, however, receive a limited amount of
property tax revenue values at approximately $1.70 per square foot.
e. Total Revenues
Based on the above consideration, the total revenues, in present value terms, total
approximately $41.00 per square foot of land area.
Revenue Study Draft Report
Marinapark Site July 28, 1997
22
TABLE 4
ESTIMATED PRESENT VALUE
CONVENIENCE RETAIL USE
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS
RENT
SIZE
INFLATION RATE
DISCOUNT RATE - GROUND RENT
DISCOUNT RATE - OTHER REVENUE
INITIAL ANNUAL GROUND RENT
$1.75 PER SQ. FT PER MONTH
12,000 SQ. FT. PER ACRE
15% EVERY 5 YEARS
10.5%
12.0%
$37,800 PER ACRE PER YEAR
PRESENT VALUE PER SQUARE FOOT(') $39.60 PER SQ. FT.
TOTAL REVENUE PER SQUARE FOOT OF LAND AREA
PRESENT VALUE OF GROUND RENT $39.60
PRESENT VALUE OF OTHER REVENUE 0.00
PRESENT VALUE OF PROPERTY TAX(2) 1.70
TOTAL $41.30
ROUNDEDTO $41.00
(1) ROUNDED TO THE NEAREST $.25
(2) ASSUMES PROPERTY TAX ES OF $100 PER SQUARE FOOT FOR 12,000 SQ. FT. OF REQUIRED LAND AREA; ROUNDED TO
THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -RETAIL; DATE: 7/28/97; JJL
4. OFFICE
KMA also reviewed the market demand for office space. Although not typically
characterized as a location for office space, limited amount of local serving office space
is located on the Peninsula. Office space leases for the same rate as retail space,
between $1.25 and $1.75 per square foot per month on a triple net basis. Most office
space can be found on the west end of the Peninsula near Lido and Cannery Village
where tenants are normally small and entrepreneurial in nature. In KMA's opinion, it is
unlikely that the market is strong enough to support any office development at the
subject property.
5. PARKING
a. Market Considerations
The ability of the Peninsula to attract visitors and its relatively high density often results
in a high demand for the limited number of parking spaces, particularly during the
summer months when daytime beach and weekly rental occupancy is at its highest.
There are approximately 21 City -owned parking lots and metered parking stretches on
the streets located on the Peninsula. Free parking or curb -side parking can be found
along the residential streets in the densely populated areas of the Peninsula. In these
areas it is even difficult to find non -metered parking during the winter months. KMA's
analysis shows that City -owned parking on the Peninsula is generating approximately
$800,000 annually before allowances for expenses in collecting revenues. Parking has
been noted to be particularly difficult for patrons using the Catalina Flyer; the subject
site could be used for such parking, by shuttling people to and from the Catalina Flyer
located at the east end of the Peninsula.
Revenue Study Draft Report
Marinapark Site July 28, 1997
23
b. Size Considerations
While the entire property could be devoted to a parking use, demand for parking on the
Peninsula is highly seasonal and tends to be concentrated at the commercial hubs near
the two piers. Thus, while the entire site could be used for parking, it would likely not
be fully utilized. On the other hand, there are no minimum size constraints.
C. Land Revenues
In determining the value for parking use at the subject site, KMA assumed that the lot
would be operated by the City as metered parking and that the parking at the subject
site would not be used by patrons of the Catalina Flyer. As presented in Table 5, based
on anticipated net revenues, (gross revenue less collection and maintenance
expenses) the present value of future revenues (net of collection costs) is estimated at
$7.80 per square foot of land area.
d. Other Revenues
KMA would expect that most parking demand would be generated by the nearby beach
traffic and visitors to the Peninsula. Thus, the users of the parking would generate
limited sales tax revenues to the City. As indicated in Table 5, KMA has estimated
sales tax revenue at $2,000 annually. In present value terms, this is approximately
$.50 per square foot.
e. Total Revenues
Based on the above, the total revenues, in present value terms, total $8.00 per square
foot of land area.
Revenue Study Draft Report
Marinapark Site July 28, 1997
24
TABLE 5
ESTIMATED PRESENT VALUE
PARKING USE
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS:
AVERAGE REVENUE(')
SQ. FT. PER SPACE
MANAGEMENT & COLLECTION
SIZE
ESTIMATED SALES TAX REVENUE
DISCOUNT RATE
ANNUALREVENUE
METER REVENUE
LESS: MANAGEMENT & COLLECTION
NET REVENUE
PRESENT VALUE PER ACRE
PRESENT VALUE PER SQUARE FOOT(')
OTHER REVENUE
ESTIMATED SALES TAX REVENUE
PRESENT VALUE PER SQUARE FOOT
TOTAL REVENUE PER SQUARE FOOT OF LAND AREA
$310
PER SPACE PER YEAR
325
SQ. FT.
20%
OF GROSS REVENUE
130
SPACES PER ACRE
$2,000
PER YEAR
10%
$40,300
(8,100)
$32,200 PER ACRE
$341,600 PER ACRE
$7.80 PER SQ. FT.
$2,000 PER YEAR
$0.50 PER SQ. FT.
PRESENT VALUE OF PARKING FEES
$7.80
PRESENT VALUE OF OTHER REVENUE
0.50
PRESENT VALUE OF PROPERTY TAX
0.00
TOTAL
$8.30
ROUNDEDTO
$8.00
"' BASED ON 1995 REVENUE COLLECTION AT THE SUBJECT SITE ($310 PER SPACE)
(2) ROUNDED TO THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -PARKING; DATE: 7/28/97; JJL
6. OWNERSHIP HOUSING
a. Market Considerations
Ownership housing on the Peninsula is popular with waterfront views extremely
desirable. There are a wide -range of housing styles and designs on the Peninsula that
results in wide variances in market price. Recent home sales range between $200,000
to over $2.0 million, depending on views, size and improvements. In addition, it is not
uncommon for homes to include a small one bedroom apartment to produce income.
Notwithstanding the region -wide softness in the residential market over the last several
years, the residential market on the Peninsula remains strong. The only limitation
foreseen for ownership residential use is the fact that the land (lots) are assumed to be
leased rather than sold. Construction of single family or ownership units on leased land
has met with market resistance and will require a substantial discount in the value of the
land from fee ownership in order to be successful.
b. Size Considerations
Other than the limitation created by the fact that the subject property land is assumed to
be leased rather than sold in fee, there are no market. constraints on the amount of
ownership residential development that could be developed on Marinapark. However,
there are other factors that will limit the size of development. These are primarily
Tidelands and open space/view corridor issues. For purposes of this analysis, KIVIA
has assumed that all residences would have to be developed on the "upland" portion of
the property and such development would have to provide for view corridors from
Balboa Boulevard. Assuming the development of the uplands portions of the property
to R-2 standards that would include one ownership as well as one rental unit
Revenue Study Draft Report
Marinapark Site July 28, 1997
25
(determined as the highest and best use in the July 3, 1996 appraisal report by Fuller &
Associates) the number of units (lots) that could be developed is estimated at 30.
C. Land Revenues
The analysis presented by Fuller and Associates establishes fair market rents for R-2
lots at Marinapark. This analysis, dated July 3, 1996, indicated an annual fair market
rent from $25,200 annually for improved lots with water views to $17,500 for improved
rear lots with no (or limited) views.
Assuming that residential development is limited to the uplands portion of property only,
all of the units will have bay views. However, depending upon the extent of commercial
development on the Tidelands portion of the subject property, some of the unit's view
may be restricted. Thus, the high estimate shown on Table 6 assumes the views are
not restricted while the low estimate assumes development on the Tidelands portion of
the site will restrict views.
As shown on Table 6, on a per square foot basis the present value of the anticipated
ground lease revenue per square foot of the area allocated to residential, i.e., the
upland area is $35.40 to $52.40. This estimate is net of a 5% discount for assumed
absorption period of three years, and an assumed $500,000 cost to improve the 30 lots.
d. Other Revenues
In addition to the ground lease revenues, residential development should increase
taxable retail expenditures within the City that should result in enhanced sales tax
revenues. Assuming that 75% of new sales are retained in the City, the present value
of the anticipated sales tax revenue amounts to under $.80 per square foot of land
area. Property tax revenues are estimated at $3.20.
Revenue Study Draft Report
Marinapark Site July 28, 1997
26
TABLE 6
ESTIMATED PRESENT VALUE
OWNERSHIP HOUSING
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS
ANNUAL RENT PAYMENT(')
LOW �2)
$17,500 PER LOT
HIGH
$25,200 PER LOT
DEVELOPMENT SIZE (UPLANDS PORTION)
30 LOTS
INFLATION RATE
1%
DISCOUNT RATE
10.5%
ANNUAL GROUND RENT
PER SQ. FT.
PRESENT VALUE PER SQUARE FOOT'3)
OTHER REVENUES
ASSUMPTIONS
PER CAPITA INCOME(')
PEOPLE PER UNIT
TAXABLE EXPENDITURES
INFLATION RATE
DISCOUNT RATE
SALES TAX REVENUE
PRESENT VALUE PER SQUARE FOOT(3)
LOW $525,000 PER YEAR
HIGH $756,000 PER YEAR
LOW $35.40 PER SQ. FT.
HIGH $52.40 PER SQ. FT.
$51,100
4
PEOPLE
25%
OF INCOME
3%
HIGH
12%
$35.40
$11,500
PER YEAR
$0.80
PER SQ. FT.
TOTAL REVENUE
LOW
HIGH
PRESENT VALUE OF GROUND RENT
$35.40
$52.40
PRESENT VALUE OF OTHER REVENUE
0.80
O�80
PRESENT VALUE OF PROPERTY TAX(')
3.20
3.20
TOTAL
$39.40
$56.40
ROUNDEDTO
$39.00
$56.00
FULLER & ASSOCIATES, JULY 3� 1996 APPRAISAL REPORT
30% REDUCTION OF HIGH ESTIMATE TO REFLECT RESTRICTED VIEW AND INTRODUCTION OF USES ON TIDELANDS
PORTION OF THE PROPERTY
REFLECTS NET SITE IMPROVEMENT COSTS OF $500,000; REDUCED BY 5% TO REFLECT STABILIZATION PERIOD;
ROUNDED TO THE NEAREST $.25; ASSUMES LAND AREA IS UPLAND PORTION OF THE SUBJECT PROPERTY OR 3.53 ACRES
(4) SOURCE: URBAN DECISIONS SYSTEMS
BASED ON $1,000,000 VALUE PER IMPROVED LOT AND INFLATED BY 2% ANNUALLY AND DISCOUNTED AT 9%; ROUNDED TO
THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE -OH; DATE: 7/28/97; JJL
e. Total Revenues
As shown in Table 6, when all major revenue sources are taken into account, the
estimated value of the upland portion of the subject site, if [eased for ownership
residential use, is $39.00 to $56.00 per square foot of land area. The higher value can
be achieved if the Tidelands portion of the property is developed with commercial uses
so as to not restrict views and that are not conflicting with residential development.
7. RENTAL HOUSING
a. Market Considerations
The 1990 U.S. census indicates that the Peninsula contains upwards of 1,400 rental
units. KMA's survey of rental housing inventory identified a limited number of traditional
apartment complexes on the Peninsula, all with few units. These are in addition to the
rental units that are often included as part of an ownership unit. Most rental units are
available only under a short-term (nine month) lease, in order to remain accessible as
summer weekly rentals. There is virtually no inventory of land o n which to expand the
supply of rental housing.
An analysis of the summer rental market confirmed that, during the months of June
through September, there is an extremely high demand for housing. These short-term
rentals command rents of $1,200 - $2,000 a week for a two to three bedroom unit.
During the rest of the year, nine month rental units lease for $850 - $1,250 per month
for a low to moderate quality apartment.
Revenue Study
Marinapark Site
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Draft Report
July 28, 1997
b. Size Considerations
Against the perceived demand for housing on the Peninsula, it is possible, in KIVIA's
opinion, to develop the entire uplands portion of the subject property with rental
housing. Discussions with the City Planning Department and 30th Street Architects
suggest that the site could be developed with residential units at a density of 18 units
per acre, upwards of 64 residential units could be added which represents less than a
3% expansion of the existing rental housing inventory. It is also KIVIA's opinion that
given the range of amenities found in proximity to the site and the excellent regional
accessibility to the employment centers located in Irvine and Newport Beach, the
uplands portion of the subject property could be developed in one phase.
C. Land Revenues
In projecting the ground lease revenues, KMA has assumed that the annual per unit
gross ground rent will be between $20,000 and $26,600. The low range projection
assumes in part that the Tidelands portion of the property is developed with commercial
uses in a manner that will restrict views, while the high range'assumes unrestricted
views. The land revenues are based on the City receiving 20% of gross rents, an
allocation that KMA believes is supported by the market. Table 7 presents the present
value of the ground rent between $20.00 and $26.40 per square foot of land area.
d. Other Revenues
The development of residential units will generate additional retail sales in the City and
property tax revenues. The present value of these revenues are estimated at $1.90 per
square foot and $1.70 per square foot of land area, respectively.
Revenue Study
Marinapark Site
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Draft Report
July 28, 1997
TABLE 7
ESTIMATED PRESENT VALUE
RENTAL HOUSING
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND REVENUE
ASSUMPTIONS
EFFECTIVE GROSS RENT
RATE
MONTHS
ANNUALLY
LOW
$1,250
12 WKS.
$12,000
LOW
$1,000
9 mos.
8,100 (2)
$26.40
PER SQ. FT.
OTHER REVENUE
$20,100
HIGH
$1,500
12 WKS
$14,400 (1�
PER CAPITA INCOME (4)
$1,500
mos.
12,200 (2)
TAXABLE EXPENDITURES
$26,600
SIZE
64
RENTAL UNITS
GROUND LEASE
20%
OF EFFECTIVE GROSS RENT
DISCOUNT RATE
10.5%
INFLATION RATE
3.0%
ANNUAL GROUND RENT
LOW
$257,280
PER YEAR
HIGH
$340,480
PER YEAR
PRESENT VALUE PER SQUARE FOOT�3)
0.90
LOW
$20.00
PER SQ. FF.
HIGH
$26.40
PER SQ. FT.
OTHER REVENUE
ROUNDEDTO
$22.00
ASSUMPTIONS
PER CAPITA INCOME (4)
PEOPLE PER UNIT
TAXABLE EXPENDITURES
LEAKAGE ALLOWANCE
DISCOUNT RATE
INFLATION RATE
SALES TAX REVENUE
PRESENT VALUE PER SQUARE FOOT�3)
TOTAL REVENUE
$43,400
3 PEOPLE
25% OF INCOME
25% OF SALES TAX REVENUE
12%
3%
$13,020 PER YEAR
$0.90 PER SQ. FT.
ASSUMES 20% VACANCY FACTOR
ASSUMES 10% VACANCY FACTOR
REDUCED BY 5% TO REFLECT STABILIZATION PERIOD; ROUNDED TO THE NEAREST $.25
�4) PER CAPITA INCOME VALUE FROM TABLE 6 REDUCED BY 15% TO REFLECT TYPICAL RENTER
(') BASED ON $100,000 VALUE PER UNIT AND INFLATED BY 2% ANNUALLY AND DISCOUNTED AT 9%; ROUNDED TO THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE-RH; DATE :7/28/97; JJL
LOW
HIGH
PRESENT VALUE OF GROUND RENT
$20.00
$26.40
PRESENT VALUE OF OTHER REVENUE
0.90
0.90
PRESENT VALUE OF PROPERTY TAX(')
0.70
0.70
TOTAL
$21.60
$28.00
ROUNDEDTO
$22.00
$28.00
ASSUMES 20% VACANCY FACTOR
ASSUMES 10% VACANCY FACTOR
REDUCED BY 5% TO REFLECT STABILIZATION PERIOD; ROUNDED TO THE NEAREST $.25
�4) PER CAPITA INCOME VALUE FROM TABLE 6 REDUCED BY 15% TO REFLECT TYPICAL RENTER
(') BASED ON $100,000 VALUE PER UNIT AND INFLATED BY 2% ANNUALLY AND DISCOUNTED AT 9%; ROUNDED TO THE NEAREST $.25
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; VALUE-RH; DATE :7/28/97; JJL
e. Total Revenues
The total revenue generated from the development of 64 units of rental housing on the
upland portion of the subject site, is estimated at $22.00 to $28.00 per square foot of
land area, depending upon what assumptions are made with respect to development
on the tideland portion of the site.
8. MARINAPARK (CURRENT USE)
As a basis of comparison, the following describes the current use and land revenues
achievable for such uses. Tidelands restrictions may inhibit continued mobile home
park use.
a. Market Considerations
i. Mobile Home Park
Currently, Marinapark Mobile Home Park is at full occupancy which is a reflection
of both high demand for housing in the area and current lease rates for spaces.
The spaces are currently renting between $743 and $1,053 per month with the
average space rent of $896 per month. Other mobile home parks within the City
have monthly rents between $600 and $1,800 depending on location and view.
Marinapark Mobile Home Park differs from its nearest direct competitor (the
mobile home park on Lido Island) in that it has more parking, better beach
frontage, and more open space between trailers. Lease rates on Lido currently
range between $ 1,100 and $1,850 per month. Even with an increase in monthly
rent to market levels at the subject property, in KMA's opinion, the demand for
spaces will remain high.
Revenue Study
Marinapark Site
29
Draft Report
July 28, 1997
imi-evi ftfh Ork
FIX,: 7
rn
M e
d",f i`,� 11
an
iii. Municipal Parking
KIVIA reviewed the City records regarding the revenues generated by the two
public parking lots at the subject property. This review would suggest that the
lots are not in high demand, a conclusion verified by numerous visits to the site.
b. Land Revenues
Table 8 presents KMA's estimate of the probable land revenues resulting from
continuing the current uses on the subject property, after rental adjustment to market.
The anticipated land revenues for the major components at the subject site range
between $20,000 to $650,000 annually.' As shown in Table 8, of the existing uses, the
mobile home park generates the highest revenues at $650,000 annually. When the
present value of the estimated revenues from all uses is allocated over the entire
subject property, the resulting value is $24.00 per square foot of land area. This low
1 For comparison purposes, assumes the Marina is operated by the American Legion.
Revenue Study Draft Report
Marinapark Site July 28, 1997
30
TABLE8
ESTIMATED PRESENT VALUE
EXISTING USES
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
TOTAL
PRESENT VALUE PER SQUARE FOOT
ROUNDED
438,900 $670,000 $835,000
$23.90
$24.00
` INCREASED BY KMA TO REFLECT KMNS REVISED RENTAL SCHEDULE AND CONTINUED OPERATION BY THE LEGION, SEE APPENDIX TABLE A
(2) INCOME ADJUSTED FOR EXPENSES RELATED TO PUBLIC USES
(') INCREASED BY KMA TO REFLECT KMA'S REVISED RENTAL SCHEDULE, SEE APPENDIX TABLE B FOR ESTIMATION OF REVISED INCOME
I
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; EXISTING; DATE: 7/28/97; JJL
.... ...... .
..........
....
.....
LAND USE
.....
SQ. FT.
......
EXISTING
ADJUSTED
MAJOR INCOME PRODUCING USES
AMERICAN LEGION
58,700
$107,000
$159,000
MUNICIPAL PARKING
22,700
22,000
20,000 (2)
MARINA PARK MOBILE HOME PARK
186,000
535,000
650,000 (3)
SUBTOTAL
267,400
$664,000
$829,000
OTHER USES
VETERANS MEMORIAL PARK
18,200
$0
$0
LAS ARENAS PLAYGROUND
12,900
0
0
LAS ARENAS TENNIS COURTS
60,600
0
0 (2)
GIRL SCOUT HOUSE
12,000
0
0
COMMUNITY SERVICES
12,000
6,000
6,000 (2)
PUBLIC BEACH
55,800
0
0
SUBTOTAL
171,500
$6,000
$6,000
TOTAL
PRESENT VALUE PER SQUARE FOOT
ROUNDED
438,900 $670,000 $835,000
$23.90
$24.00
` INCREASED BY KMA TO REFLECT KMNS REVISED RENTAL SCHEDULE AND CONTINUED OPERATION BY THE LEGION, SEE APPENDIX TABLE A
(2) INCOME ADJUSTED FOR EXPENSES RELATED TO PUBLIC USES
(') INCREASED BY KMA TO REFLECT KMA'S REVISED RENTAL SCHEDULE, SEE APPENDIX TABLE B FOR ESTIMATION OF REVISED INCOME
I
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; EXISTING; DATE: 7/28/97; JJL
value reflects the fact that approximately one-third of the site is assumed to be non -
revenue generating.
C. Other Revenues
The main source of "other revenue" being generated by the subject site are minor
amounts of possessory interest property tax and sales tax revenues. The present value
estimate of these revenues when allocated over the entire subject property is less than
$.25 and, therefore, insignificant.
d. Total Revenues
Based on the above, the land revenues range between $6,000 and $650,000 annually.
When the total land revenues of $835,000 are allocated over the entire site, the
resulting value is $24.00 in present value terms.
CONCLUSION OF POTENTIAL USES AND VALUE OF REVENUES
Table 9 presents a summary of the KMA analysis of individual land uses including the
existing use of the subject property. As indicated, the highest value is generated by
hotel use primarily due to the revenues generated by transient occupancy tax.
Revenue Study
Marinapark Site
31
Draft Report
July 28, 1997
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SECTION III - DEVELOPMENT SCENARIOS
In projecting potential city revenues from Marinapark, KMA has created two
development scenarios. These development scenarios are based on KMA's
understanding of both the land use constraints, i.e., coastal zone, tidelands, etc. as well
as the characteristics of each use in terms of market demand, absorption limitation and
revenue characteristics. For comparison purpose, a baseline scenario has been
developed projecting revenues with the continued use, with lease rates brought to
market for the mobile home spaces and marina/dry storage uses.
The description of the scenarios is as follows:
BASELINE SCENARIO
The baseline scenario assumes that (1) all of the uses remain, (2) that the market rents
are revised for both the trailer park spaces and the American Legion boat slips, and (3)
that the cost to complete necessary site upgrades totals $200,000. No revenue is
assumed for the Girl Scout House or former museum building. -
Based on the data and projections presented in Section 11, the estimated net annual
revenues and present value of anticipated revenues over a 55 -year period is presented
in Table 10. The present value of these revenues is estimated at $8.8 million.
2. SCENARIO A Partial Reconstruction
This scenario involves replacing the trailer park with uses that are consistent with the
restriction applicable to tidelands property on which the majority of the mobile home
park is located. Under this scenario, the other uses on the site, i.e., public parking, Girl
Scouts, American Legion, parks, etc., would remain. The trailer park site totaling 4.27
Revenue Study Draft Report
Marinapark Site July 28, 1997
32
TABLE 10
BASELINE SCENARIO
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND AREA
USE (ACRES) TOTAL REVENUE(')
---------------------------------- ANNUAL ------------------------------------------
EXISTING USES(') 8.8 $835,000
LESS: AMORTIZATION OF SITE (14,0021
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES $821,000
------------------------------- PRESENT VALUE -----------------------------------------
EXISTING USES(2) 8.8 $9,000,000
LESS: AMORTIZATION OF SITE ($200,0091
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES $8,800,000
ALL REVENUE IS ASSUMED TO BE LAND REVENUE
(2' ASSUMES AMERICAN LEGION CONTINUES TO OPERATE MARINA AT MARKET RATES AND MOBILE HOME PARK SPACE RENTS ARE AT MARKET
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; BASELINE; DATE: 7/28/97; JJL
TABLE 11
SCENARIO A - PARTIAL RECONSTRUCTION
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
------------------------------------ PRESENTVALUE -----------------------------
RESTAURANT
LAND AREA
$3,000,000
$4,000,000
USE
(ACRES)
LAND REVENUE
TOTAL REVENUE
---------------------------------------
ANNUAL
------------------------------------------
RESTAURANT
2.00
$280,000
$370,000
HOTEL
1.70
180,000
440,000
OTHER EXISTING(')
5.10
270,000
270,000
TOTAL
&80
$730,000
$1,080,000
LESS: AMORTIZATION OF SITE
(36,000)
(3LOOO
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES
$694,000
$1,044,000
------------------------------------ PRESENTVALUE -----------------------------
RESTAURANT
2.00
$3,000,000
$4,000,000
HOTEL
1.70
1,900,000
4,700,000
OTHER EXISTING(')
5.10
3,400,000
3,400,000
TOTAL
8.80
$8,300,000
$12,100,000
LESS: AMORTIZATION OF SITE
($500,000)
($50g000
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES
$7,800,000
$11,600,000
ASSUMES REPLACEMENT OF MOBILE HOME PARK, THEREFORE REVENUES GENERATED FROM AMERICAN LEGION, PARKING AND
COMMUNITY SERVICES REVENUES REDUCED BY 15% TO REFLECT FRONTAGE IMPROVEMENTS.
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues, SCENARIOA; DATE: 7/28197; JJL
acres would be developed with a major restaurant(s) using ±2.0 acres with the
remainder of the land (±1.7 acres) devoted to a hotel. The land area devoted for a
. . . . . . . .. . . . . . . . . ..
dt e
hotel would be suitable for ±85 rooms. VW66A4 ",.1
Under this scenario the new uses would not have Balboa
Boulevard frontage. Thus, signage must be provided for the restaurant and hotel along
Balboa Boulevard and that existing access to the portion of the site reconstructed would
be upgraded. This, in turn, may require the reconfigu ration/ elimination of some of the
existing uses along the Balboa frontage.
Table 11 presents KMA's estimates of net annual and present value revenues under
this partial redevelopment. As shown, the initial annual net revenues should increase
over the baseline scenario by $223,000 (from $821,000 to $1.04 million). The net
present value over the 55 -year projection period shows a $2.8 million increase (from
$8.8 million to $11.6 million).
3. SCENARIO B Major Redevelopment
Under this scenario, the Tidelands portion of the subject property would be developed
with visitor serving uses that are consistent with state law covering use of tidelands.
The uplands portion of the site would be developed with residential use, as residential
use presents the highest and best use of the uplands portion.
Inasmuch as the value of the uplands property will be impacted by the extent of
development occurring on the Tidelands portion of the property, under the major
redevelopment alternative, the value of the entire site is enhanced by limiting the
development on the Tidelands portion of the property, thereby, enhancing the
value of the uplands portion of the subject property. Thus, KIVIA has assumed that
the American Legion facility would remain and that the Tidelands portion of the property
would be used only for a small hotel, one restaurant and open space. Under this
Revenue Study
Marinapark Site
33
Draft Report
July 28, 1997
scenario. a.
The anticipated revenues under this scenario are presented in Table 12. As shown, it
is assumed that the uplands portion of the property would be used for ownership
residential. The annual net revenues should increase over the baseline scenario by
$557,000 (from $821,000 to approximately $1.38 million). The net present value over
the 55 -year projection period shows a $7.1 million increase (from $8.8 million to $15.9
million). This scenario has a projected net present value of $4.3 million over partial
reconstruction (Scenario A) of Marinapark. Development of ownership residential
through a ground lease of the uplands property raises a number of economic and public
policy issues. First, a substantial discount has been applied to the fee value of the
property (30%). Secondly, reappraisals to market value are not assumed over the term
of the lease, reflecting the experience of the Irvine Co. and others who have met
substantial political public opposition to such increases. Rents are allowed to increase
only 1% annually. Finally, public agency's who are landlords face continued exposure
to tenant complaints, particularly from residents. Given the inherent problems with
ownership housing on leased land, it may be appropriate for the City to consider other
housing types including time shares. Time shares on the uplands property may be a
logical extension of the hotel located on the Tidelands portion of the site and produce
additional transient occupancy tax revenues to the City.
It should b e noted that given the demand for beach front property, the City may want to
consider joint use of the American Legion building for community meeting space.
Revenue Study Draft Report
Marinapark Site July 28, 1997
34
TABLE 12
SCENARIO B - MAJOR REDEVELOPMENT
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
LAND AREA
USE (ACRES) LAND REVENUE TOTAL REVENUE
---------------------------------------- ANNUAL ------------------------------------------
RESIDENTIAL (30 LOTS)(')
3.53
$570,000
HOTEL
2.00
210,000
RESTAURANT
1.00
140,000
OTHER EXISTING (2)
2.27
246,000
TOTAL
8.80
$1,166,000
LESS: AMORTIZATION OF SITE
(175,000)
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES $991,000
$610,000
510,000
187,000
246,000
$1,553,000
(lz� �000
$1,378,000
------------------------------------- PRESENTVALUE -----------------------------------------
RESIDENTIAL (30 LOTS)()
HOTEL
RESTAURANT
OTHER EXISTING (2)
TOTAL
LESS: AMORTIZATION OF SITE
DEVELOPMENT AND MARKETING
ESTIMATED NET REVENUES
3.53
$6,800,000
2.00
2,200,000
1.00
1,500,000
2.27
3,100,000
8.80
$13,600,000
($2,000,000)
$11,600,000
$7,300,000
5,500,000
2,000,000
3,100,000
$17,900,000
($2,qQL000�
$15,900,000
"' REFLECTS THE MIDPOINT VALUE BETWEEN LOTS WITH VIEWS AND LOTS WITH LIMITED OR NO VIEWS
(2) ELIMINATES ALL EXISTING USES EXCEPTTHE AMERICAN LEGION; REVENUES REDUCED BY 15% FOR FRONTAGE IMPROVEMENTS
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; SCENARIOB; DATE: 7/28/97; JJL
CONCLUSION OF POTENTIAL USE
KIVIA's analysis of potential City revenues clearly suggest that the City revenues can be
maximized by redevelopment of the entire site. Specifically, KMA would conclude:
1 . The upland portion of the subject property should be used for residential. This
analysis would suggest that housing creates the highest revenue for this portion
of the site.
2. The City would be best to limit development on the tideland portion of the subject
property so as to maximize the value of the upland portion of the property.
While either hotel or restaurant use is viable, hotel use and limited restaurant
space may be more compatible with the residential nature assumed to take place
on the upland portion of the site, and would limit potential noise impact to
properties on Lido Island.
3. As previously mentioned, the value of the upland portion of the property has
been impacted by the assumption to lease rather than sell the uplands portion of
the subject property. The City, however, may want to consider selling the fee
interest in the uplands portion, especially if there is a desire by the City to see
ownership housing development. Based upon conclusions as to value contained
in Fuller and Associates' appraisal report, KMA believes the annual reinvestment
earnings the City could expect from sale proceeds for the uplands portion of the
property alone is significantly higher than annual revenues the City would receive
from leasing the uplands property. KMA has estimated that the City could
enhance the present value of the revenues by $1.8 to $3.1 million compared with
leasing the land, even after taking into consideration the loss of land appreciation
resulting from a site.
Revenue Study Draft Report
Marinapark Site July 28, 1997
35
Revenue Study
Marinapark Site
APPENDIX
36
Draft Report
July 28, 1997
TABLE A
AMERICAN LEGION SLIP DRY STORAGE FEE ADJUSTMENT
ESTIMATED NET OPERATING INCOME
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
CITY OF NEWPORT BEACH
AVERAGE CURRENT SLIP AND SPACE RENT $11 PER FOOT PER MONTH
ADJUSTED SLIP AND SPACE RENT $14 PER FOOT PER MONTH
19770-
7 -
PER
SLIP
SPACE
ADJUSTED ANNUAL INCOME") $237,000
$122,000
VACANY AND COLLECTION AT 5% ($12,000)
($6,000)
EFFECTIVE GROSS INCOME $225,000
$116,000
(LESS): OPERATING EXPENSES AT $715 PER SLIP
AND $350 PER SPACE ($34,000) ($18,000)
NET OPERATING INCOME $191,000 $98,000_
$289,000
TOTALREVENUE
EGj0 N -T-[ 5 QWERA
MER�f N Woo,
SLIP SPACE
EFFECTIVE GROSS INCOME $225,000 $116,000
CITY SHARE AT 50% 40%
$113,000 $46,000
TOTAL CITY SHARE $159,000
BASED ON 47 SLIPS WITH AN AVERAGE BOAT SIZE OF 30 LINEAL FEET AND AND 52 SPACES WITH AN AVERAGE
BOAT SIZE OF 14 LINEAL FEET.
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; AMLGADJ, DATE: 7/28/97; JJL
TABLE B
MOBILE HOME PARK LEASE RATE ADJUSTMENT
ESTIMATED NET OPERATING INCOME
REVENUE STUDY FOR ALTERNATIVE USES
MARINA PARK
r-ITY OF NEWPORT BEACH
AVERAGE CURRENT SPACE RENT(')
$896
PER MONTH
ADJUSTED SPACE RENT
$1,071
PER MONTH
INCOME
6,000
MANAGEMENTFEES
SPACE RENT
$745,200
240
UTILITY CHARGES
15,312
SALARIES
TOTAL SCHEDULE INCOME
$760,512
1,991
-7)-
LESS: ASSUMED VACANCY DUE
($59,3T
N B -OP;.
TO RATE INCREASE @ 2% (2)
$15,210
$647,945
ROUNDEDTO
$650,000
($15,210)
OPERATING EXPENSES(3)
REPAIRS & MAINTENANCE
$1,200
JANITORIAL SUPPLIES
240
MAI NTENANC E -LAN DSCAPE
12,000
TRASH
6,600
UTILITY -GAS
18,000
TOTAL OPERATING EXPENSES
($38,6-4-0-)
GEN. &ADMIN. EXPENSES(3)
COMPUTER SERVICE
$876
INSURANCE -WORKERS COMP
1,816
CONSULTING FEES
6,000
LEGALFEES
6,000
MANAGEMENTFEES
25,548
OFFICE SUPPLIES/EXP.
240
POSTAGE & DELIVERY
180
SALARIES
16,666
TAXES -PAYROLL
1,991
-7)-
TOTAL GENERAL & ADMINISTRATIVE EXPENSES
($59,3T
N B -OP;.
TOTAL NET OPERATING INCOME
$647,945
ROUNDEDTO
$650,000
(" SPACE RENT RANGES FROM $743 TO $1,053 PER MONTH; AVERAGE SPACE RENT @ $896 PER MONTH
(2) THE MOBILE HOME PARK IS CURRENTLY AT FULL OCCUPANCY; THE VACANCY RATE REFLECTS NATURAL VACANCY
DUE TO RATE INCREASE
(3) EXPENSES BASED ON 94/95 FISCAL YEAR ACTUALS
KEYSER MARSTON ASSOCIATES, INC.
FILENAME: Nbvalues; MHPADJ; DATE: 7/28/97; JJL
96413.NPB
16093.0001
Revenue Study
Marinapark Site
37
Draft Report
July 28, 1997
1�e A -it � a
4A.
t Af
Melurn, Tony
From: Delino, Ken
To: MELUM
Subject: Legion Yacht Club
Date: Wed, Mar 1, 1995 11:27AM
How does the Legion Hall and Marina compare to BCYC? # of slips, acerage of
uplands, etc. Didn't BCYC pay $3.6 million for their uplands. How big an
area was that? I'm trying to establish the value of the Legion Hall.
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> CITY OF NEWPOR-F BEACHf]
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0 -Z P.O. BOX 1768, NEWPORT BEACHOtA 92658-8915
L40
0 Jagulay 1, 1995 rmr-
-:'L-w Sunday
A lifeguzm competitive qualificat n !!! ." L
it e*cMducfed
morning, &rch 19, 1995, at 9;0:tAlM
.; Theojexamination will begin at the
Lifeguai4d'Efleadquarters locate (n
IVW base,_o:f��Xhe Newport Pier. There is
ample metaFed parking available. %'-p w 8:45 A.M. SHARP,
NOTE: TAJ's is a competitive exa ination Ad Ill applictats must complete the
followirlt:requirements to quali for training:
I F:
1. 86R�rard swim (approxima , 28 th Street groin to twe Newport Pier).
A t off time willSe e tablished on day of tEEt to be eligible for the
ru = wim-run. CF) M
J'a E
0
2. 0 yard run-swim(rX
E
A combine pcff t total of t e two physical tests wil:edaermine a=cut off for
eligibilay tithe questio aire/oral�and first aid 1jaignation.
St
4. 16aea3e of -age by ly 1 , 1995. A C13
5. Qu ity- aire/oral nterview. a
6. W ion. 0
e ten first aid aminat'
7. a..., 0
lorrected ision. 0
8. PJ@4ji examinat on will be administered to akld&plicants. The
b 'r —
tat c A%a-minlio will include a drug testing sciren. Because
• oialifEffu ds work in the interest of publi= safety, the
• da ar emely high. Cy
(D
CandidaW for in-sez--iCEW-raining 1 'J*be.selected on the basis of the above
'l
I
wl
requirements. Those who become eli ib f f i t=8 c:hnri-_1 y af Iter the
test da In-service train will be leld on the following dates:
t th th
Saturday, April 29 a: id (un Apzil 3 Saturday, May 6th and Sunday, May
h
th E13' a d 4'�-h"J 9a%uFd9r9,�-mayQ29!PudA:9 Sunday,
7 Sa day, Q_ May
May 211 Four hq&irs of to orieatat:on will be required over the Memorial
g
L Efa, w,
er 0.
er
Day Wee tiME t
ad, day Ad tu an"rTrtLnge 1rmininrr Vnirr attgn-ci,ance in
trainingUs MANDATORY �our absence f m any training date mayfqsqualify you
from fuzler consi&r tid.L.L. Z= 5LU check in advance for anj'CrMflicting
-1;
swim meet dates ;4 CIE) And -qAT/ArT_1PRt dates -
Trainees will be required to perfornEstrenuous in -water training;Zdrills and
exercises. Lifeguards will be hireff)on a competitive basis andTTh—enumber of
positions available.
C*4
If you have any questions, please call (714) 644-3047 between 8:00 a.m. and
1
.-._____.6:00 p.m. See reverse side for possible swim course diagrams and distances.
Jo n Blauer, Captain
Marine Safety Department
3300 Newport Boulevard, Newport Beach
Melurn, Tony 6 '/j --, S-0 ? 0
rorn: Delino, Ken
o: MELUM
ubject: Legion Hall
ate: Tue, Jan 31, 1995 8:13AM
< <File Attachment: Legion Hall> >
Comments: Tony, This is an EXCEL file showing the legion hall rents for
the marina and dock storage. I also calculated the gross rents based on
their percentage rent. Can you take a look at their available slips and
storage and give me some idea if they're getting fair value. Also, how much
do you think we could net if we took it over? Thanks
A
Page 1
------ -- ---- -
LEGIONHAALS 12-0
Month 1994
Marina rent @ 40
Dry storage rent @ 50%
july
$12,657.00
$3,760.00
august
$15,289.00
$3,654.00
sept
$12,359.00,
$4,062.00
Oct
$13,880.00
$4,781.00
nov
$15,175.00
$4,441.00
dec
$12,545.00
$3,750.00
jan
$14,472.00
$4,506.00
feb
$14,167.00
$4,119.00
march
$12,304.00
$3,294.00
april
$15,424.00
$3,872.00
may
$16,108.00
$4,122.00
june
$16,724.00
$4,492.00
annual rent
WV $171,104.M,�
$48,853.00
avg monthly
$14,250.67,
$4,071.08
lgross revenu,'J'\\
$427,760.00
$97,706.00
L v
�40
/7
fAZ-T-VC - ---------
0
Page 1
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92659-1768
August 8, 1990
Jack Shafer
President,
Newport Harbor, 219 Incorporated
American Legion
215 15th Street
Newport Beach, CA 92663
Dear Mr. Shafer:
It has been brought to my attention that Mr. Frank Kaiser,
occupying Slip Number 42 at the American Legion with vessel
CF8929GN, hasbeen living aboard the vessel in violation of your
Vessel Mooring Agreement.
The City does not permit liveaboards in the Balboa Yacht Basin
marina that -is owned and operated by the City of Newport Beach.
The City approved your Vessel Mooring Agreement and concurs with
the provisions of your agreement, which also prohibits liveaboards
at your marina. This is consistent with your lease with the City
of Newport Beach.
The purpose of this letter is to request that you contact Mr.
Kaiser and ask that he immediately discontinue living aboard his
vessel. ,
If you have questions please call me at 644-3044.
sincerely,
David'harshbarger
Maririe Director
cc: Winston H.''West, Vice President,
c/o American Legion
Frank Kaiser
.3300 Newport Boulevara, Newport Beach
Newport Harbor
Ataterienni Legion Post No. 291
215 15th Street
Newport Beach, California
673-5070
January 8, 1993
Dorothy Palen
3300 Newport Blvd.
Newport Beach, CA 92663
Dear Dorothy:
NiC2 talking with you today. I have 2nclO52d a
copy of our standard contract which should be Completed on
any future U52 Of the hall.
Dorothy, We have always tried to accommodate the
city and other civic groups at a fair and r2a5onabl2 price
to help them support their functions. However, due to the
hard economic times We Must Cover our basic costs. After an
end Of the year audit, We find our break even is $250. This
will be your charge in the future. At the time the hall is
reserved, this amount along with the contract reserving the
hall must be 5ubmitt2d. one Other restriction, if there is a
cancellation of your reserved date 90 days or before, the
full $250 will be refunded. Cancellations 1255 than 90 days
will be non refundable. This We have to do because Most Of
our bookings are 6 months to one year in advance and the
hall would go unused for that evening.
If there there are any further qU25tions Pl2a52
call Sally Chapman, Office Manager at 673-5070.
Looking forward to working with you in the futur2.
ere
�)� J
John K. MC Daniel, II
Secretary, American Legion
Post 291, Inc.
CC: Kevin Murphy, City Manager
All Department Directors
P0
0 : '0
t(N CITY OF NEWPORT BEACH
>
i3 RO. BOX 1768, NEWPORT BEACH, CA 92659-1768
F Fo
0
July 24, 1990
Mrs. Beverly Rainbolt
1300 E. Highland Ave.
San Bernardino, CA 92404
Subject: Electrical hazard in the Marina
Dear Mrs. Rainbolt:
I would like to take this opportunity to thank you for informing the City of the
electrical hazard you encountered at the American Legion docks. The immediate
problem of broken receptacles and breakers has been repaired. I am al so
requiring all of the exterior cords around the docks be replaced with S.D. cords.
Safety in the marina is of utmost importance to the City, and once again I would
like to thank you for your concern.
Very truly yours,
BUILDING DEPARTMENT
Raimar W. Schuller, Director
By-
Ra� J91tera,.Building Inspector
RB: so
cc: City Manager
-,/Marine Director
3300 Newport Boulevard, Newport Beach
PURCHASE ORDER
7
:32,8 2 2
'c P101
INVOICE IN !DUPLICATE
A
CITY OF-. NMATORTBEACH.:
THIS ORDER. NUMBER MUST APPEAR
ON ALL INVOICES, SHIPPING NOTICES,
BILLS OF LADING, EXPRESS RECEIPTS
ANDPACKAGES.
3300 NEWPORT, BOULEVARD
DELIVERY. TICKETS SHALL INCLUDE
NEWPORT.BEACH, CALIFORNIA 92663
UNIT PRICE.
PHONE: (7,14) 644"3118'
1=0 W
DATE
APRIL, 11, 19 -
DEPT.
VENDOR
SHIP To
A
fSP ME' NLESS OTHE;�,RWMC NIOT ED)
F* KEC40 KC
P-0. 6OX 80308
L I FECUP RD HEADWAFTIERS
SAN D I EGO, CA 92158
70 NEIVIPUNRT PIER
KECO PUMP A HEAD, 140DEL 175
3,500.00
EXTRA 314 HORSE MG I—LIP,
;EXTRA T114ER 1,4 E T E R
SUB TOTAL
32 65G-001
2 19.
FREIGHT
35. 00
10TAL
F. O.B.: JTERMS:
IMPORTANT'
C mustGon-
The Articles covered by this Pur hasp Order or Contract
CITY OF NEWPORT BEACH
904. P
022816000 3, 9 0 0
form,to applicable Cal—OSHA Standards, and/or other appropriate
laws, regulations, rules, and codes of the Federal'(36vernment and
the State of California—
Show as a separate.iterh any retailsales tax, use tax or Federal tax
applicable to this purchase—
FRAN ARKE III
This order'subject to California sales tax.
All purchases and transportation charges are exemptfro,m Federal
PURCHASING AGENT
excise tax.
NOTE: All allowable transportation charges must be prepaid, and
shown as a separate*itern on the invoice. Do hot include Federal
transportation tax.
No. 32852-2
DEPARTMENTAL COPY
PURCHASEORDER No.. 32776
INVOICE IN DUPLICATE
THIS ORDER NUMBER MUST APPEAR
CITY OF NEWPORT BEACH. ON ALL INVOICES, SHIPPING NOTICES,
BILLSOF LADING, EXPRESS. RECEIPTS
AND PACKAGES,
3300 NEWPORT BOULEVARD
DELIVERY TICKETS SHALL INCLUDE
NEWPORT BEACH" CALIFORNIA 92663 UNIT PRICE.
PHONE: (714) 644-3118
�P.CITI
DATE 4, 3- 29,
RCH 2Z IS
VENDOR..
DEPT.
F* TR,,AU11TE- VN,
CONS T 'MUCT10N SHIP TO �SAMS UNLESS 07'HEP11MfSE SOTED)
24 0 fi ZFIV41100 R T BLVD.
A 9266-5 �3�1 7 9 81
SU I LD P4,1D
PIER, RAMP A -11D r -1 -CONT AT 1 5TH STREET AND
:5 , 2 e'S 6
�&ST L,1AY PER Q_10TATIC)ki �AND P. NN -11T DR411v�G ATTACPiED AND
DATED 3127./89.
F.O.B.:
TERMS:
'IMPORTANT
The Articles covered by this Purchase Order or Contract must con-
CITY OF NEWPORT BEACH
,12281,50 0 15, 2 66, 0, C-
form to applicable CW—OSHA Standards, and/or other appropriate
laws,. regulations, rules- and codes of the Federal Government and
the State of California.,
Show as a separate item any retail sales tax, use tax or Federal tax
applicable to this purchase.
This order subject to California sales tax.
FRANK H. CLARKE III
All purchases and transportation charges are exempt from Federal
PURCHASING AGENT
excise tax.
NOTE: All allowable transportation charges must be prepaid and
shown as aseparate item on the invoice. Do not include Federal
transportation tax.
No. 32776
DEPARTMENTAL COPY
sm
E7
kj,.
fy)
-7r
14
PURCHASE REQUISITION
CITY OF NEWPORT BEACH
P.O. NO. 3/28/89
(if reser-ve-d)— DATE
SUGGESTED VENDOR: DEPT Marine
Trautwein Construction SHIP TO
2410 Newport Blvd.
Newport Beach, CA 92663-3798
QUAN.
DESCRIPTION OF ARTICLES OR SERVICES REQUIRED
UNIT PRICE
TOTAL
BUDGET NO.
1
Pier, ramp and float
15,266
02-2816-0
Installed at 15th Street and West Bay
per quotation and permit drawing attached
-
and dated 3/27/89
APPROVED:
DEPT HEAD
(or person -authorized to execute re0isitionsY-
PURCHASING AGENT
Q-UOTATION
F R 0 M
2410 Newport Boulevard
q74aa&Ae4;ft 134at" Newport Beach, California 92663-3798
Telephone (714) 673-1960
Vak4Aoat Cam.44ac4an Contractors License No. 451559A
TO City of Newport Beach, Marine Dept.
3300 Newport Blvd. Date
Newport Beach, CA 92663
A t be� I t i U I I. Bervid Hat shba, ge, , Director
March 27, i9eg
The following quotation is for: All labor, material and equipment necessary to
perform the following on the easterly property edge of the
American Legion and as shown on drawing 1 of 1, dated 3/24/89.
Build and install a new dock using treated wood without any
paint. Floatation to be polyethylene foam filled pontoons. Size
to be as follows: 6' x 36' main dock, 3' x e' ramp landing -and a
3' x 3' ve'e.
Install five (5) cleats.
Install two (2) corner bumper. Install dock bumper on all boat
exposed edges.
Install a 2' X 20' ramp using treated wood without any paint
except for the top rail and side rail which will be painted
white.'
Install two (2) 12" square prestressed dock pile with "Colson"
pile rollers.
Install a 2' x 57' pier using treated wood except for the top
rail and side rail which will be painted white. Pier to be
supported on two (2) cast -in-place pile and three (3) 15"
diameter prestressed pile.
All exposed surfaces to be given a coat of oil (should be done
annually).
Utilities and permits to be by others.
Total 15,266.00
TERMS: Payment on completion.
Quote good for acceptance within 60 days.
ACCEPTED::::::::::::: TRAUTWEIN BROTHERS
WATERFROI\
.J��ONSTRUQT I ON
--------------- 7 --------
Date Sa�pue�l F. Kni2ss��
Contractors are required by low to be licensed and regulated by the Contractors State License Board. Any question concern�
ing a contractor may be referred to the registrar of the board whose address is:. ContractoW State License Board, 1020 N
Street, Sacramento, California 95814
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cl. OF EWPORT BEACH
H A R S 0 1 P E 111,11 -Ml I T
pMMISSION IS HE:4F-SY GRAN5TED TO CONSTRUCT AMC
'MAINTAt-N, THE FACIL[TY HEREOF,
AT TRE SITE WDICA'7'=�� TO FROV'SIOWS 01
THE HARGO�R FZ'7�'V.-HT F -EACH AW,
"N'. PE,
ANY SPECIAL. -
IS NOT
THE CITY CCO' 09" -0 li., L.
so � v c L
RIONTS GiVEN U-NDER THU;
0 um C m,
AND THIS PErirAiT R*AY UE '�ZVVC,"KEi�' �Z!"' TN-' C.$n' -
IN ACCORDANCE. YgTLE 17,AP -4UV-4-ACi m CODE.
CITY NAROGR ,00--n
PERMIT NO.
g
I TC
J- I
DATE
R- 117 M-0 7 RRI 771 T
Perfrat
orange Pa'rmft
Other
City Council Agenda
'N Item No.: F-1
_L�E_A_S_E_
THIS LEASE, made and enteredinto this day
of 1975, by and between the CITY OF NEWPORT
BEACH, a chartered municipal corporation, hereinafter referred to
as "Lessor", and.NEWPORT HARBOR POST NO. 291 OF THE AMERICAN LEGION,
a California corporation, hereinafter referred to as "Lessee":
R E C I T A L S:
A. Lessor holds title to certain harbor frontage and'
tidelands, together with certain uplands abutting thereon located
at 15th Street and West Bay, City of Newport Beach, County of Orange,
State of California, hereinafter more particularly described.
B. Lessee has constructed substantial improvements upon
the property nsisting of certain buildings, boat.anchorages,,
moorings, slips, docks, ramps, launching facilities, parking lot,
and dry,boat storage which Lessee presently operates and maintains
pursuant to a lease between Lessor and Lessee dated February 26, 1951.
The term of the existing lease expires on January 31, 1976. Lessee
has requested Lessor t o extend the term of the lease for an additional
twenty-five (25) years.
-C. It is the judgment of the City Council of the City of
Newport Beach that the uplands cannot be used without the tidelands,
nor can said tidelands be used without the uplands abutting thereon;
and it is further,the judgment of Lessor that thelleasing of the
whole'of said lands hereinafter described as one parcel is necessary
for the proper development and use of said lands, water frontage
and tidelands for recreational, public, civic, beaches, commerce,
navigation and fishery purposes.
D. It is the judgment of the City Council of the City of
Newport Beach that the leasing of said lands to Lessee, upon the
conditions in this agreement specified, is not inconsistent with
the trust imposed upon such portion of the lands hereinafter
described, which may constitute tidelands, and it is further the
j : udgment of the City Council of the City of Newport Beach that the
l6asing.of said uplands as hereinafter described upon the conditions
in this agreement specified, is for a public purpose and does not
violate the Constitution of the State of California and is permis-
sible under State law.
E. Lessor proposes to lease to Lessee the premises
described hereinafter, and Lessee is willing to accept said lease on
the terms and I conditions hereinafter set forth. This lease does
not violate Section 1402 of . the Newport Beach City Charter in that
this le I ase constitutes I a releasing of property under lease at the
effective date of said Charter.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS
AND THE MUTUAL COVENANTS set forth below, Lessor and Lessee hereby
agree as follows:
DESCRIPTION OF LEASED PREMISES
Lessor hereby leases, and Lessee does hereby accept a
lease of the property, buildings and related parking and boat
facilities located at 15th Street and West Bay, as more particularl
y
described i I n Exhibit "A", which is attached hereto and ma
de a part
herein bythis reference.
TERM
In order to comply with Section 420 of the Newport Beach
City I Charter which restricts the leasing of property for a period
of more than twenty-five (25) years without prior voter approval,
the existing lease between Lessor and Lessee dated February 26, 1951,
may be extended for a period of twenty-four (24) years and two (2)
months, which would constitute a total period of twenty-five (25)
years from the expiration date of the existing lease, to wit,
January 31, 1976. The term of this lease will commence on March 1.
1975, and expire on March 1, 2000.
III. USE
Lessee shall use the demised premises, together with the
buildings, parking and boat and marine.facilities located thereon
2 -
for the purposes of managing, operating and conducting the activi-
ties of the American Legion. In and as a part of its duties in
managing and operating said American Legion Post, Lessee shall
not discriminate as to race, color, creed or the civil rights and
liberties of individuals subject to the normal rules and operating
procedures of the American Legion. Lessor retains the right to
locate an Acquatic Center in the area formerly used by the
Newport Harbor Lawn Bowling Association, as more accurately
depicted on Exhibit "B" attached hereto and made a part herein
by this reference. Lessee covenants and agrees to permit Lessor
to use its boat launching facilities in connection with said
Acquatic Center.
IV. USE AS A COMMUNITY CENTER BY OTHER ORGANIZATIONS
When the demised premises and buildings are not in use
by the Lessee, the premises and buildings shall be available for
the use as a community center and recreation instruction facility
by the City Parks, Beaches and Recreation Department on a first -
priority basis, and.by local organized community, civic related
organizations in accordance with reasonable rules, regulations,
fees and scheduling to be established by Lessee with the approval
of the City Manager.
V. TYPE OF BUSINESS ACTIVITY
Lessee shall not grant any concession, license, permit
or privilege for the conduct of any business or other operation
for profit or alter the use or type of service on the demised
premises without the prior approval of the City Manager.
-3-
Lessee shall promptly pay for all utility services
furnished to it and shall pay before delinquent any general and
special taxes or assessments or other governmental charges, if
any, which may be levied on the demised premises or furnishings
therein', or improvements thereon, or any possessory interest therein
arising out of or based upon the leasehold interest throughout the
term hereof, or may be imposed upon Lessee as a result of its
operations under the lease. Satisfactory evidence of such payments
shall be delivered to Lessor upon demand therefor.
VIII. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS
Lessee covenants and agrees that during the term of
this lease it will,- at its own cost and expense, maintain the
grounds, landscaping, and all buildings, and any other improve-
ments of any kind in existence or nature constructed or installed
on the demised premises by the Lessee, at a high standard of
maintenance and repair. Maintenance shall include painting of all
buildings and boat facilities. If in the judgment of the Lessor,
such standards of maintenance and repair are not being maintained,
Lessor may at its option, after written notice thereof to the
Lessee and Lessee's failure to commence in good faith to remedy
the same within the time herein provided and thereafter diligently
prosecute the same,to completion, elect to correct any deficiency,
whether it be in reference to grounds, landscaping, buildings or
improvements. Lessee covenants and agrees to pay to the Lessor
on demand any and all sums expended by it in correcting any such
deficiency. It, in the judgment of the Lessor, the disrepair or
lack of maintenance constitutes an emergency, the notice herein
provided shall be a 24-hour notice to remedy; in all other cases
it shall be a 5 -day notice.
-4-
IX. INSURANCE HOLD HARMLESS
Lessee shall save and keep Lessor, its officers, agents
and employees free and harmless from any and all claims or demands
of any name or nature whatsoever arising,,out of, or incident to,
the use and occupancy of the premises herein described by Lessee.
In partial performance of this obligation by Lessee, Lessee shall
procure and at all times during the term of this tease maintain in
full force and effect a policy, or policiesi of public liability
and property damage insurance protecting the City of Newport Beach,
its officers, agents and employees from all claims or demands for
damages. The policy, or policies, shall provide for not less than
Two Hundred Thousand Dollars ($200,000.00) for injury or death of
one person; Five I Hundred Thousand Dollars ($500,000.00) for injury
or death of two or more persons; and Fifty thousand Dollars
($50,000.00) forldamages to property. The City Manager may require
an increase in the amount of insurance from time to time in
accordance with changes in economic conditions. Attached to said
policy shall be an endorsement which shall provide as follows:
"Within the limits set forth in this policy,
to indemnify and save the City of Newport Beach, its
officers, agents and employees, free and harmless from
all damage, claim, loss or liability of any name or
nature whatsoever which the City of Newport Beach, its
officers, agents or employees.may hereafter sustain or
incur, or may.be imposed upon them, arising out of, or
in any way connected with, the use or occupancy by the
insured, its servants, agents and employees, of the
premises described in a lease granted to insured by the
City of Newport Beach."
Lessee shall furnish, and maintain withthe Lessor, either
the original policy, or policies, or a certified cb py, or copies,
thereof. The policy, or policies, shall be approved as to sufficiency
by the City Manager and as to form by the City Attorney.
X. LESSOR'S RIGHT OF INSPECT -ION
Lessor reserves the right by its authorized agents,
employees or representatives to enter the leased premises to inspect
-5-
the same or any part thereof at any time and to attend to or
protect the Lessor's interest under this lease.
XI. COMPLIANCE WITH LAWS
Lessee covenants and agrees to comply with all rules,
regulations, statutes, ordinances and laws of the State of California,
County of Orange, the City of Newport Beach or any other governmental
body or agency having lawful jurisdiction over the leased premises
or the business, enterprises or activities conducted thereon.
XII. ASSIGNMENT
Lessee shall not assign, transfer, sublease or give any
grant of control of this lease or demised premises, or any part
thereof, either voluntarily or involuntarily, unless first approved
by the City Council.
XIII. NON-COMPLIANCE
If the Lessee fails to comply with any of the terms
and conditions of this Lease, the Lessor may give to the Lessee a
notice in writing of such failure and specify therein the particu-
lars in which Lessee has failed to comply with the provisions of
this Lease. If the Lessee fails for a period of thirty (30) days
after the giving of such notice to comply with the provisions of
this Lease, the Lessor may, at its option', terminate this Lease,,
and all rights of the Lessee therein shall cease and terminate and
the Lessee shall immediately thereafter deliver possession of the
premises to the Lessor.
XIV. SURRENDER OF PREMISES UPON EXPIRATION OR
TERMINATION
Upon the expiration of the term of this lease or
sooner termination thereof as herein provided, Lessee shall deliver
possession of said demised premises to Lessor in the same condition
as delivered to Lessee, reasonable wear and tear excepted, and
also excepting any changes or alterations authorized or approved
in writing by the City Manager or City Council. Upon the expiration
or termination of this lease, any additions or improvements made
-6-
upon the demised premises shall become the property of the Lessor.
XV. DEFAULT AND TERMINATION OF LEASE
A. Default
Time and�each of the terms, covenants and
conditions hereof are expressly made the essence of this Lease.
If the Lessee shall fail to comply with any of
the terms, covenants, or conditions of this Lease, including the
payment of rental herein reserved, at the time an d in the amount
herein required, and shall fail to remedy such default within
.thirty (30) days after service of a written notice from Lessor so
to do if the default may be cured by the payment of 'money, or to
commence in good faith to remedy any other default within thirty
(30) days and thereafter diligently prosecute 'the same to completion,
or if Lessee shall abandon or vacate the leased premises, Lessor
may, at its option, and without further notice or demand, terminate
this Lease and enter upon the leased premises and take possession
thereof, and remove any and all persons therefrom with or without
process of law.
B. Surrender of Possession Upon Termination
Lessee covenants and agrees that upon the
expiration or sooner termination of this Lease, the Lessee will
peaceably surrender the leased premises wit h all buildings and
improvements, in the same condition as when received or constructed,
reasonable use and wear thereof, and camage by fire, Act of God,
or by the elements excepted. Lessee expressly waives any right
which it may have to relocation assistance or costs in vacating
.the demised premises. Any improvements built, constructed or
placed upon the leased premises by the Lessee, or anyone holding
by, under, or through it, shall remain on the leased premises and
become the property of the Lessor without any cost to Lessor upon
the termination of this Lease, whether by lapse of time or by
reason of default.
-7-
C. Remedies Cumulative
The rights, powers, elections and remedies of
the Lessor contained in this Lease shall be construed as cumulative
and no one of them shall be considered exclusive of the other or
exclusive of any rights or remedies allowed by law, and the
exercise of one or more rights, powers, elections or remedies shall
not impair or be deemed a waiver of Lessor's right to exercise any
other.
No Waiver
No delay or omission of the Lessor to exercise
any right or power arising from any omission, neglect or default of
the Lessee shall impair any such right or power or shall be
construed as.a waiver of any such omission, neglect or default on
the part of the Lessee or any acquiescence therein.
No waiver of any breach of any of the terms,
covenants, agreements, restrictions or conditions of this lease
shall be construed as a waiver of any succeeding breach of the same
or,of any of the terms, covenants, agreements, restrictions or
conditions of this lease.,
E. Holding Over
It is mutually agreed that ifthe Lessee shall
hold over after the expiration of this lease for any cause, such
holding over shall be deemed a tenancy from month to month only,
upon the same terms, conditions and provisions of this lease.
XVI. NOTICES
It is mutually agreed that any notice or notices provided
for by this lease or by law, to.be given or served upon the Lessee,
may be given or served by mail, registered or certified, with
postage prepaid, and if intended for the City of Newport Beach,
addressed to the Cit y Manager, Newport Beach, California 92660,
or at such other address as may be hereafter furnished to the Lessee
in writing, and if intended for the Lessee, addressed to its Director
at 211 15th Street, Newport Beach, California, 92660 or at such
other address as may be hereafter furnished to the Lessor in writing;
-8-
or it may be served personally upon any corporate officer of Lessee
or person charged with general management responsibilities in
connection with the leased premises; and that any notice or notices
provided by this lease or by law to be served upon Lessor may be
served personally upon the Mayor of the City of Newport Beach or
the City Clerk of said City. Such service shall be deemed complete
at the expiration of forty-eight (48) hours from and after the
deposit in the United States mail of such notice, demand or
communication.
XVII. RECORDS AND ACCOUNTS
A. Bookkeeping
Lessee covenants and agrees that it will, at
all times during the term of this lease, keep or cause to be kept
true and complete books, records and accounts of all financial
transactions in the operation of all businesses, concessions,
services and activitiesof whatever nature conducted on or from the
demised.premises.
B. Inspection of Records
All books, records and accounts of every kind
and nature kept by Lessee, its agents or employees relating to the
operation of any business, concession, service or activity conducted
on or from the demised premises shall, at all reasonable times, be
open and made available for inspection or audit by the Lessor, its
agents or employees, upon request.
C. Audit
Lessee covenants and agrees to furnish to Lessor
annually, a non -certified statement showing the annual gross
income derived from the marina slips, the dry boat storage
facilities, the parking lot, and any other business activity con-
ducted on the demised premises, and the disbursement of said annual
gross income. Said statement shall be furnished to Lessor within
thirty (30) days following the completion of Lessee's fiscal year.
The cost of said audit shall be borne by Lessee.
-9-
XVIII. RENTAL
A. Building Facilities
Lessee covenants and agrees to pay to Lessor
a minimum rental for the use and occupancy of the building facili-
ties located on the leased premises in the sum of Three Hundred
Dollars ($300.00) per month, payable on the first day of each
month commencing with the effective date of this lease.
B. Parking Lot
Lessee covenants and agrees to pay to Lessor
one hundred percent (100%) of the revenues derived from the parking
lot, payable monthly. Lessee shall purchase a minimum of
twenty-six (26) parking spaces at a fee consistent with City parking
lot charges. It is further agreed that thirty-six (36) parking
stalls shall be made available for use at no cost to Lessee or
by those persons renting a boat slip from Lessee.
C. Marina Slips
Lessee covenants and agrees to pay to Lessor
the sum of forty percent (40%) of the gross revenues received from
the marina slips, payable monthly. If it is mutually determined
by the parties hereto that additional boat slips are required, Z�>
Lessee will finance their construction with the additional revenue_�>
derived from the rents being used to retire the debt incurred
for the costs of the new slip construction. Upon payment of the
entire debt incurred for the costs of new slip construction,
Lessee shall pay to Lessor the sum of forty percent (40%) of the
gross revenues derived from the new marina slips.
D. Dry Boat Storage
Lessee covenants and agrees to pay to Lessor
the sum of fity percent (50%) of the revenues received from the
dry boat storage facilities and lockers, payable monthly. If it
is determined by the parties hereto that additional dry boat stofl.c
and locker facilities are required, Lessee will finance their con-
struction with the additional revenue derived from the rents being used
to retire the debt incurred for the new dry boat storage and locker
facilities. Upon payment of the entire debt incurred for the cost
of the new dry boat storage and locker facilities, Lessee shall
pay to Lessor the sum of fiftypercent (50%) of the gross revenues
derived from the new dry boat storage and locker facilities.
XIX. RENEGOTIATION OF RENTS
If either party deems it necessary at the end
of the yearly audit, all rental rates may be renegotiated and
adjusted by mutual agreement of both parties.
XX. MISCELLANEOUS
A. Inurement
Each and all of the covenants, conditions and
agreements herein contained shall, in accordance with the context,
inure to the benefit of Lessor and apply to and bind Lessee, its
respective heirs, legatees, devisees, executors, administrators,
,successors, assigns, licensees, permittees, or any person who may
come into possession,or occupancy of said premises or any part
thereof in any manner whatsoever. Nothing in this paragraph shall
in any way alter the provisions herein contained against assignment
or subletting or the granting of licenses or concessions.
-11-
B. Captions
The captions of paragraphs and subparagraphs of
this Lease are for convenience only and do not in any way limit
or amplify the terms and provisions hereof.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease as�of the day and year first above written.
CITY OF NEWPORT BEACH
a municipal corporation
By:
Mayor
APPROVED AS: TO FORM:
ATTEST:
City Attorney
By:
City Clerk
NEWPORT HARBOR POST NO. 291 OF THE
AMERICAN LEGION
a California corporation
By:
President
By:
Secretary
-12-
A parcel of land situated in the City of Newport
Beach, California, being a portion of Lot 4, Section 33,
Township 6 South, Range 10 West, S.B.B. & M., a portion of
'Lot 4, Section 34, Township 6 South, Range 10 West, S.B.B.
& M.,.and certain filled tidelands described as follows,
to wit:
Beginning at a point in the northerly prolongation
of the Westerly lineiof 15th Street, as said 15th Street is
laid'out and shown upon.a map of Tract No. 234, recorded in
Book 13, pages 36 and 37, Miscellaneous Maps, Records of
Orange County, California, said point of beginning being
160 feet northerly from the northeasterly corner of Lot 4,
Block 115 of said Tract No. 234; running thence North 91 431
30" East along the Northerly prolongation of the Westerly
Line of said 15th Street, a distance of 109.79 feet to an
intersection with the United States Government Bulkhead line
between Station No. 118 and Station No. 119, as said bulkhead
line is shown upon a map entitled "Harbor Lines -Newport Bay,
Newport Harbor, California", approved May 2nd, 1936, by the
Secretary of War and on file in the office of the U. S.
,District E ' ngineer, 751 South Figueroa.Street, Los Angeles,
California; thence westerly along said bulkhead line a distance
of 349.9 feet to an intersection with the�northerly prolonga-
tiot of the easterly line of Lot 13, Block 115 of said Tract
No. 234; thence south 90 431 30" West along the said northerly
prolongation of the Easterly line of Lot 13, a distance of
249.79 feet to an intersection with a line 20 feet northerly
of and parallel with the northerly line of said Block 115;
thence south 800 16' 30" East along the said line 20 feet
northerly of and parallel with the northerly line of Block 115,
a distance of 203.9 feet;, thence North 90 431 30" East a
distance of 140 feet; thence south 800 16' 30" East, a distance
of 146 feet to the point of beginning.
RESERVING for street purposes a strip of land 50
feet in width, lying 25 feet on each side of the following
described center line:
Beginning at a point in the northerly prolongation of
the easterly lineof Lot 13, Block 115, as shown on a map of
Tract No. 234, recorded in Book 13, pages 36 and 37, Miscellaneous
Maps, Records of Orange County, California, said point of begin-
ning being 135 feet northerly of the northeasterly corner of
said Lot 13; running thence south 801 16' 30" East along a line
parallel to the northerly line of said Block 115, a distance of
203.9 feet to a point which is 146 feet westerly of the westerly
line of 15th Street.
13XHIBIT "A"
c
^
B4a&woou,WATERFRONT CONSTRUCTION
2410 Newport Boulevard
Newport Beach, California 92662-3798
Telephone (714) 673~1980
Contractors License No. 4515wv
March 23, 1989
City of Newport Beach
Marine Department
3300 Newport Blvd.
Newport Beach, CA 92663
Attention: David Harshbarger, Director
Re: Dock, ramp and pier for sewer pump -out unit'
Dear Dave:
Please note the two (2) revisions on the enclosed plan.
The following is a list of the various items and their respective
costs. There could be some items that the city may be able to
do.
1,
Dock
L.S.
$ 5n145.00
2.
Five (5) cleats
L.S.
175.00
3.
Corner bumper (2)
L.S.
27.00
-4--
Dock bumper 72', material only
L.S.
6-5�-00-
5.
Dock bumper 72', installed
including material
L.S.
205.00
_�---
Ramp, 2' x 20', handraiI primed
only
L.S.
-9�6-1-00
Ramp, 2' x 20', handrail enameled
L.S.
1,206.00
B�-
Pier 2' x 57` without handrail
L.S.
1��858~()0
-9-1
Handrail on pier 114',primed only
^
(City standard) `
L.S.
. ~100_
,o--10.
Handrail on pier 114', enameled
L.S.
2,463.00
11.
Pile for dock (2)
L.S.
1,88O.0O
12.
Two (2) sets pile rollers
L.S.
406.00
13.
Three (3) cast -in-place pile, large
diameter PVC jetted in beach,
filled with concrete and four No.
4 rebar for reinforcement. A 2'
long 6" x 12" to be bolted to top
for a pile cap. ,
L.S.
1,260.00
-1-4�<a)Two 2` T -head pre -cast concrete pile
with e 6" x'12" pile cap.
L.S.
~2—,--&82.00
14(b)In
lieu of T -head pile, install two
(2) 15" diameter prestressed con-
crete pile with a 6" x 12" pile cap.L.S.
1r946.00
_
' ^ %BWC 241Bemob, ° (714) 673^1860
Page Two
March 23, 1989
I think the above is complete and understandable. Feel free to
contact me at any time.
Sincerely,
TRAUTWEIN BROTHERS
WATERFRONT CONSTRUCTION
SUBJ ECT..__ SHEET No.----/--.—
TRAUTWEIN BROS. J 0 B No.,:
Mali
WATERFRONT CONSTRUCTION
General Engineering Contractors
2410 Newport Blvd. Newport Beach, Calif. 92663
(714) 673-1960 BY56M/4�155 DATE,?/�_�6
CHKD. BY DATE
24
AA1
0- �� Al I e.
C14
te
/o/z-
N"i
Im
STATE OF CALIFORNIA GEORGE DEUKMEJIAN, Governor
CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD
SANTA ANA REGION
6809 INDIANA AVENUE, SUITE 200
RIVERSIDE, CALIFORNIA 92506
PHONE: (714) 782-4130
March 16,1989
Winston H. West, Corporate Board Member
American Legion Post No. 291
215 15th Street
Newport Beach, CA 92663
COMPLIANCE SCHEDULE EXTENSION, ORDER NO. 88-84
Dear Mr.West:
As you know, Order No. 88-84 requires the installation of a vessel
pumpout station at the American Legion Marina by March 15, 1989.
It is our understanding that the City of Newport Beach is funding
the construction of the pumpout station and associated facilities.
You were unable to install the pumpout station in accordance with
the schedule provided in Order No. 88-84 due to the time involved
in obtaining the funds from the City. According to Mr.
Harshbarger, the funds needed for the pumpout station involved a
mid -year budget amendment for the City which requires the approval
of the City Council. Recently, Mr. Harshbarger informed us that
instead of installing the pumpout station on a float, as designed
initially, the City will build a �pier to facilitate the
installation of the pump and associated utilities and also to
provide ease of its maintenance. As a consequence, additional time
is needed to redraw the plans, construct the pier and install the
pumpout station.
Due to the reasons discussed abovel we are extending the final
compliance date for installing the pumpout station to June 1, 1989.
Please submit a compliance report by June 15, 1989, confirming your
= " " corup" J1 ance �Wit'11 Orde-r No. 88—SA
.Lu -L— _L _L
If you have any questions, please call me or A. John Mijares of
our Municipal Surveillance Section.
Sincerely,
GEP-kRD.J. THIBEAULT
Executive Officer
cc: Dave Harshbarger - City of Newport Beach
AJM/AL-EXT.84
California Regional Water Quality Control Board
Santa Ana Region
July 8, 1988
ITEM: 7
SUBJECT: Adoption of Orders implementing the Regional Board's
Newport Harbor Vessel Pumpout Program
DISCUSSION:
For the Board's consideration, Regional Board staff have drafted
six separate orders requiring the installation of vessel waste
pumpouts in Newport Harbor. As summarized below, these orders
correspond to the six options for a pumpout program for Newport
that were identifed by staff. These options are described in more
detail in the preceding staff report (Item 6).
OPTION 1. REQUIRE THE ARCHES MARINA TO INSTALL A PUMPOUT (Order
88-92).
OPTION 2. REQUIRE ALL THE COMMERCIAL MARINAS IN THE TURNING BASIN
AREA TO INSTALL PUMPOUTS, OR, AS AN EQUIVALENT MEASURE,
CONTRIBUTE TO THE INSTALLATION OF A SINGLE PUBLIC
PUMPOUT FACILITY (Order 88-83).
OPTION 3. REQUIRE THE AMERICAN LEGION MARINA TO INSTALL A PUMPOUT
(Order 88-93).
OPTION 4. REQUIRE ALL THE COMMERCIAL MARINAS IN THE NEWPORT/RHINE
CHANNEL AREA TO INSTALL PUMPOUTS, OR, AS AN EQUIVALENT
MEASURE, CONTRIBUTE TO THE INSTALLATION OF A SINGLE
PUBLIC PUMPOUT FACILITY (Order 88-84).
OPTION 5. REQUIRE NEWPORT LANDING MARINA TO INSTALL A PUMPOUT
(Order 88-85).
OPTION 6. REQUIRE DE ANZA BAYSIDE VILLAGE MARINA TO INSTALL A
PUMPOUT (Order 88-91).
Staff has recommended that the Board adopt Resolution No. 88-89,
directing staff to implement a vessel pumpout program in Newport
attendant to four of the identified options: Options 2, 4, 5, and
6.
RECOMMENDATION
Staff recommends that the Board adopt Order No. 88-83, Order No.
88-84, Order No. 88-85, and Order No. 88-91, which require the
installation of pumpouts in Newport Harbor, pursuant to the
provisions of the Presley Vessel Sanitation Bill (Ch. 6, Harbors
and Navigation Code), and in accordance with the directives of
the Newport Vessel Pumpout program (Resolution 88-89).
Ql�
"A W4&
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-83
Requiring Specific Newport Bay Vessel Terminals Collectively
Described as the Turning Basin Vessel Terminals to
Install Vessel Pumpouts or Provide Equivalent Measures of
Vessel Sanitation Service
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. Newport Bay is a designated No Discharge Harbor. The
discharge of vessel sanitary wastes is thereby prohibited.
2. Monitori ng in Newport Bay reveals that bacterial contamination
is occurring. Special investigations strongly implicated
discharges of vessel sanitary wastes as a significant source
of this bacterial conamination.
3. There are presently no vessel pumpout facilities in the
vicinity of the Turning Basin in Newport Bay. Consequently,
vessel pumpout facilities are not adequate to protect water
quality and beneficial uses in the Turning Basin.
4. The following vessel terminals having more than one slip
(hereinafter Turning Basin vessel terminals), doing business
in the vicinity of the Turning Basin in Newport Bay, are not
presently equipped with vessel pumpout facilities for the
transfer and disposal of sewage from marine sanitation
devices:
OWNER/ADDRESS
Richard F. Dwyer
6336 Wilshire Blvd.
Los Angeles, CA 90048
Ardell Marina
2101 West Coast Hwy.
Newport Beach, CA 92663
Newport Bay Group Ltd.
2439 West Coast Hwy
Newport Beach, CA 92663
Mariners Mile Mar. Ctr.
2439 West Coast Hwy.
Newport Beach, CA 92663
FACILITY ADDRESS
2001 West Coast Hwy.
2101 West Coast Hwy.
2431 West Coast Hwy.
2505 West Coast Hwy.
Order No. 88-83
South Shore Yacht Club
2527 West Coast
Hwy.
P.O. Box 1174
Newport Beach, CA 92663
Don B. Pederson
2547 West Coast
Hwy.
2547 West Coast Hwy.
Newport Beach, CA 92663
Minney Family Trust
2601 West Coast
Hwy.
2523 West Coast Hwy.
Newport Beach, CA 92663
Ancient Mariner
2607 West Coast
Hwy.
2862 McGaw
Irvine, CA 92714
Port Calypso
2663 West Coast
Hwy.
2727 West Coast Hwy.
Newport Beach, CA 92663
Robinson Development C o.
2703 West Coast
Hwy.
2717 West Coast Hwy.
Newport Beach, CA 92663
Pelican Associates
2735 West Coast
Hwy.
5 Upper Newport Plaza Dr.
Newport Beach, CA 926,63
James A. Carter
2751 West Coast
Hwy.
500 W. Santa Ana Blvd.
Santa Ana, CA 92701
James A. Carter
2801 West Coast
Hwy.
500 W. Santa Ana Blvd.
Santa Ana, CA 92701
Harbor Lights H.U.I
2901 West Coast
Hwy.
25241 Paseo de Alicia
Laguna Beach, CA 92653
Lancer Landing Ltd.
3017 West Coast
Hwy.
801 Civic Center Dr. #801
Santa Ana, CA 92701
The Tower Association
3121 West Coast
Hwy.
3121 West Coast Hwy.
Newport Beach, CA 92663
Allen Dale
3131 West Coast
Hwy.
3131 West Coast Hwy.
Newport Beach, CA 92663
Page 2
Order No. 88-83
Jordan M. Wank
1800 N. Highland Ave. #100
Hollywood, CA 90028
Elks Lodge No. 1767
3456 Via Oporto
Newport Beach, CA 92663
Trawick Inv -Lido Marina Village
P.O. Box 6348
Orange, CA 92667
Lido Sailing Club
3300 Via Lido
Newport Beach, CA 92663
3300 West Coast Hwy.
3456 Via Oporto
3366 Via Lido
3300 Via Lido
Page 3
5. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required by the regional
board for the protection of the quality of the waters of
this state, be equipped with vessel pumpout facilities
for the transfer and disposal of sewage from marine
sanitation devices. In imposing this requirement, the
regional board shall take into account the number and
type of vessels that use or are berthed at the vessel
terminal and whether there exists at other locations
pumpout facilities that have a total capacity sufficient
for, and are convenient and accessible to, vessels that
use or are berthed at the vessel terminal. In addition,
the regional board may require any vessel pumpout
facility to be equipped with a meter for the purpose of
measuring use of the facility. All pumpout facilities
installed after the operative date of the statute adding
this section shall be equipped with a meter."
6. Vessels berthed in the Turning Basin area should have access
to a vessel pumpout. This can be accomplished either by each
vessel terminal providing a private pumpout facility or by the
installation of a single public pumpout facility for this
area.
7. On July 8, 1988, the Regional Board adopted Resolution 88-89,
approving the vessel pumpout program for Newport Bay which was
recommended by staff, and directing staff to implement that
program.
Order No. 88-83
Page 4
8. This order requires the installation of vessel pumpout
facilities at an existing terminal, with no expansion of use
of the terminal, or the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code' ' Section 21000 et seq.) in accordance with Section 15301
and 15303, Chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in accordance with Chapter 6 of the
Harbors and Navigation Code, the owner and operator of each
vessel terminal listed in this order shall comply with the
following requirements to the extent they apply to that vessel
terminal:
A. The largest Turning Basin vessel terminals, Lido Marina
Village, 3366 Via Lido, the Arches Marina, 3300 West Coast
Hwy. and Ardell Marina, 2101 West Coast Hwy., containing
approximately 99, 63, and 62 slips, respectively, each shall:
1. Install a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
install, in cooperation with other vessel terminals in
the area, a vessel pumpout in the vicinity of the Turning
Basin, in a location that is approved by the Executive
Officer, that will be available for use by the public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout,
either individually, or in the case of the establishment of
a cooperative program among vessel terminals to provide
pumpout service, in concert with cooperating vessel
terminals.
4. Conform to the following time schedule for pumpout
installation:
Order No. 88-83 Page 5
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Each marina shall submit a report outlining 9/1/88
a general method of complying with this
order. The report shall describe whether
pumpout facilities will be installed at the
marina submitting the report, or at another
location. If the pumpout facilities will
be installed at another location, the
report shall indicate what person or entity
will have primary responsibility for
installing and operating the pumpout
facilities, and include a statement by that
person or entity that it has agreed to
install the pumpout facilities and that the
pumpout facilities will serve vessels
berthed at the marina which submits the
report.
Prepare plans and specifications for 10/1/88 10/15/88
pumpout installation. If the Executive
Officer does not approve of the pumpout
location, or determines the plans and
specifications are otherwise inadequate,
the marina shall prepare new or
supplemental plans and specifications in
accordance with a schedule set by the
Executive Officer.
Submit plans and agreements for 11/1/88 11/15/88
pumpout maintenance.
Begin construction. 2/1/89 2/15/89
Complete construction. 3/1/89 3/15/89,
Full Compliance. 3/15/89 4/1/89
----------------------------------- ------------------------------
Order No. 88-83
Page 6
B. Within 30 days of notification by the Executive Officer that
the actions of the vessel terminals named in "All above have
not resulted in a commitment for the installation of a pumpout
that would serve the vessel sanitation needs of the Turning
Basin area, vessel terminals located at the following
addresses and having greater than approximately 10 slips --2527
West Coast Hwy., 2751 West Coast Hwy., 2801 West Coast Hwy.,
2901 West Coast Hwy., 3017 West Coast Hwy., 3121 West Coast
Hwy., and 330O.Via Lido, each shall:
1. Install a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
install, in cooperation with other vessel terminals in
the area, a vessel pumpout in the vicinity of the Turning
Basin, in a location that is approved by the Executive
Officer, that will be available for use by the public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout,
either individually, or in the case of the establishment
of a cooperative program among vessel terminals to
provide pumpout service, in concert with cooperating
vessel terminals.
4. Conform to a time schedule for pumpout installation, as
approved by the Executive Officer.
C. Within 30 days of notification by the Executive Officer that
the actions of the vessel terminals named in "All and "B" have
not resulted in a commitment for the installationiof a pumpout
that would serve the vessel sanitation needs of the Turning
Basin area, the following vessel terminals located at the
following addresses and having approximately 10 or less
slips --2001 West Coast Hwy., 2431 West Coast Hwy., 2505 West
Coast Hwy., 2547 West Coast Hwy., 2601 West Coast Hwy., 2607
West Coast Hwy., 2633 West Coast Hwy., 2703 West Coast Hwy.,
2735 West Coast Hwy., 3131 West Coast Hwy., and 3456 Via
Oporto, each shall:
1. Install a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
install, in cooperation with other vessel terminals in
the area, a vessel pumpout in the vicinity of the
Turning Basin, in a location that is approved by the
Order No. 88-83 Page 7
Executive Officer, that will be available for use by the
public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said ' pumpout,
either individually, or in the case of the establishment
of a cooperative program among vessel terminals to
provide pumpout service, in concert with cooperating
vessel terminals.
4. Conform to a time schedule for pumpout installation,, as
approved by the Executive officer.
D. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at least
thirty days in advance of the change. In all cases,, the
changes should be reported in writing within seven days after
the change.
E. As the ownership of or operation of vessel terminals changes,
the Executive Officer is directed to amend this order to
reflect said changes.
F. If, in the opinion of the Executive Officer, any part of this
order is not complied with in a reasonable and timely manner,
the Executive Officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdictiont in accordance with Chapter 6 (commencing with
section 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commencing with Section 13000) of the Water
Code.
G. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any way preclude or
restrict a city, city and county, county, or other public
agency, from adopting and enforcing any requirements for
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set- by the
Regional Board.
I, James R. Bennett, Executive officer, do hereby certify the
foregoing is a full, true, and correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
JAMES R. BENNETT
Executive Officer
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-84
Requiring Specific Newport Bay Vessel Terminals Collectively
Described as the Rhine/Newport Channel Vessel Terminals to
Install Vessel Pumpouts or Provide Equivalent Measures of
Vessel Sanitation Service
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. Newport Bay is a designated No Discharge Harbor. The
discharge of vessel sanitary wastes is thereby prohibited.
2. Monitoring in Newport Bay reveals that bacterial contamination
is occurring. Special investigations strongly implicated
discharges of vessel sanitary wastes as a significant source
of this bacterial conamination.
3. There are presently no vessel pumpout facilities in the
vicinity of the Rhine/Newport Channel in Newport Bay.
Consequently, vessel pumpout facilities are not adequate to
protect water quality and beneficial uses in the Rhine/Newport
Channel.
4. The following vessel terminals having more than one slip
(hereinafter Rhine/Newport Channel vessel terminals), and
doing business in the vicinity of the Rhine/Newport Channel in
Newport, are not presently equipped with vessel pumpout
facilities for the transfer and,disposal of sewage from marine
sanitation devices:
OWNER/ADDRESS
Vista Del Lido
611 Lido Park Dr.
Newport Beach, CA 92663
Little Inn on the Bay
617 Lido Park Dr.
Newport Beach, CA 92663
Coast Properties Services
1800 E. Gary #108
Santa Ana, CA 92705
Lido Center Marina
700 Lido Park Dr. #40
Newport Beach, CA 92663
FACILITY ADDRESS
611 Lido Park Dr.
617 Lido Park Dr.
633 Lido Park Dr.
West End of Rhine Channel
Order No. 88-84 Page 2
Russell Fluter 701 Lido Park Dr.
510 30th St.
Newport Beach, CA 92663
SEA Enterprises 632 31st. St.
634 Lido Park Dr.
Newport Beach, CA 92663
Lido Peninsula Yacht Anchorage 717 Lido Park Dr.
P.O. Box 1158
Newport Beach, CA 92663
W.D. Schock 2900 Lafayette Ave.
2900 Lafayette Ave.
Newport Beach, CA 92663
W.D. Schock
2900 Lafayette Ave.
Newport Beach, CA 92663
Amos Corgiat
7107 Georgia St.
Newport Beach, CA 92663
Ruth Zimmerman
611 Lido Park Dr.
Newport Beach, CA 92663
Noel Singer
2049 Century Park E. #1380
Los Angeles, CA 90067
Jean R. Belden
1245 Wilshire Blvd. #408
Los Angeles, CA 90017
Woody's Wharf -Newport
2318 Newport Blvd.
Newport Beach, CA 92663
South Coast Shipyard and Design
2300 Newport Blvd.
Newport Beach, CA 92663
American Legion
215 15th St.
Newport Beach, CA 92663
2818 Lafayette Ave.
2816 Lafayette Ave.
2800 Lafayette Ave.
2602 Newport Blvd.
2404 Newport Blvd.
2318 Newport Blvd.
2312 Newport Blvd.
215 15th St.
5. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required,by the regional
board for the protection of the quality of the waters of
Order No. 88-84
Page 3
this state, be equipped with vessel pumpout facilities
for the transfer and disposal of sewage from marine
sanitation devices. In imposing this requirement, the
regional board shall take into account the number and
type of vessels that use or are berthed at the vessel
terminal and whether there exists at other locations
pumpout facilities that have a total capacity sufficient
for, and are convenient and accessible to, vessels that
use or are berthed at the vessel terminal. In addition,
the regional board may require any vessel pumpout
facility to be equipped with a meter for the purpose of
measuring use of the facility. All pumpout facilities
installed after the operative date of the statute adding
this section shall be equipped with a meter."
6. Vessels berthed in the Rhine/Newport Channel area should have
access to a vessel pumpout. This can be accomplished either
by each vessel terminal providing a private pumpout facility
or by the installation of a single public pumpout facility for
this area.
7. On July 8, 1988, the Regional Board adopted Resolution 88-89,
approving the vessel pumpout program for Newport Bay which was
recommended by staff, and directing staff to implement that
program.
8. This order requires the installation of vessel pumpout
facilities at an existing terminal, with no expansion of use
of the terminal, or -the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code, Section 21000 et seq.) in accordance with Section 15301
and 15303, Chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in accordance with Chapter 6 of the
Harbors and Navigation Code, the owner and operator of each
vessel terminal listed in this order shall comply with the
following requirements to the extent they apply to that vessel
terminal:
A. The largest Rhine/Newport Channel vessel terminals, Lido Yacht
Anchorage, 717 Lido Park Dr., and the American Legion Marina,
215 W. 15th St., containing approximately 175 and 48 slips,
respectively, each shall':
1. Install, a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
Order No. 88-84
Page 4
install, in cooperation with other vessel terminals in
the area, a vessel pumpout in the vicinity of the
Rhine/Newport Channel, in a location that is approved by
the Executive officer, that will be available for use by
the public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout,
either individually, or in the case of the establishment of
a cooperative program among vessel terminals to provide
pumpout service, in concert with cooperating vessel
terminals.
4. Conform to the following time schedule for pumpout
- installation:
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Each marina shall submit a report outlining 9/l/88
a general method of complying with this
order. The report shall1describe whether
pumpout facilities will be installed at the
marina submitting the report, or at another
location. If the pumpout facilities will
be installed at another location, the
report shall indicate what person or entity
will have primary responsibility for
installing and operating the pumpout
facilities, and include a statement by that
person or entity that it has agreed to
install the pumpout facilities and that the
pumpout facilities will serve vessels
berthed at the marina which submits the
report.
Prepare plans and specifications for 10/1/88 10/15/88
pumpout installation. If the Executive
Officer does not approve of the pumpout
location, or determines the plans and
specifications are otherwise inadequate,
the marina shall prepare new or
supplemental plans and specifications in
accordance with a schedule set by the
Executive Officer.
Order No. 88-84
Page 5
Submit plans and agreements for 11/1/88
pumpout maintenance.
Begin construction. 2/l/89 2/15/89
Complete construction. 3/l/89 3/15/89
Full Compliance. 3/15/89 4/1/89
---------------------------------------------------------- ------
B. Within 30 days of notification by the Executive Officer that
the actions of the vessel terminals named in "All above have
not resulted in a commitment for the installation of a pumpout
that would serve the vessel sanitation needs of the
Rhine/Newport Channel area, the following vessel terminals
located at the following addresses and having greater than
approximately 10 slips --611 Lido Park Dr., 617 Lido Park Dr.
633 Lido Park Dr., West End of the Rhine, 2312 Newport Blvd.,
and 2602 Newport Blvd.;, each shall:
1. Install a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
install, in cooperation with other vessel terminals in
the area, a vessel pumpout in the vicinity of the
Rhine/Newport Channel, in a location that is approved by
the Executive officer, that will be available for use by
the public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout,
either individually, or in the case of the establishment
of a cooperative program among vessel terminals to
provide pumpout service, in concert with cooperating
vessel terminals.
4. Conform to a time schedule for pumpout installation, as
approved by the Executive Officer.
C. Within 30 days of notification by the Executive Officer that
the actions of the vessel terminals named in "All and "B" have
not resulted in a commitment for the installation of a pumpout
that would serve the vessel sanitation needs of the
Rhine/Newport Channel area, the following vessel terminals
located at the following addresses and having approximately 10
Order No. 88-84
Page 6
or less slips --701 Lido Park Dr., 632 31st St., 2900 Lafayette
Ave., 2818 Lafayette Ave., 2816 Lafayette Ave., 2800 Lafayette
Ave., 2404 Newport Blvd., and 2318 Newport Blvd., each shall:
1. Install a vessel pumpout within their respective vessel
terminals, in an accessible location that is approved by
the Executive Officer.
or, as an alternative measure,
install, in cooperation with other vessel terminals in.
the area, a vessel pumpout in the vicinity of the
Rhine/Newport Channel, in a location that is approved by
the Executive officer, that will be available for use by
the public.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout,
either individually, or in the case of the establishment
of a cooperative program among vessel terminals to
provide pumpout service, in concert with cooperating
vessel terminals.
4. Conform to a time schedule for pumpout installation, as
approved by the Executive Officer.
D. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at least
thirty days in advance of the change. In all cases, the
changes should be reported in writing within seven days after
the change.
E. As the ownership of or operation of vessel terminals changes,
the Executive Officer is directed to amend this order to
reflect said changes.
F. If, in the opinion of the Executive Officer, any part of this
order is hot complied with in a reasonable and timely manner,
the Executive Officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdiction, in accordance with Chapter 6 (commencing with
section 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commencing with section 13000) of the Water
Code.
Order No. 88-84 Page 7
G. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any way preclude or
restrict a city, city and county, county, or other public
agency, from adopting and enforcing any requirements for
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set by the
Regional Board.
I, James R. Bennett, Executive officer, do hereby certify the
foregoing is a full, true, and correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
JAMES R. BENNETT
Executive Officer
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-85
Requiring Newport Landing Marina
503 E. Edgewater St. Balboa, CA 92661
to Install a Vessel Sanitation Pumpout
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. Newport Landing, 503 E. Edgewater St., Balboa, CA 92661, owned
by Landing Associates, Douglas L. Salisbury, 17042 Gillette
Ave., Irvine, CA 92714, a vessel terminal in the vicinity of
the Main Channel in Newport Harbor, is not presently equipped
with vessel pumpout facilities for the transfer and disposal
of sewage from marine sanitation devices.
2. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required by the
regional board for the protection of the quality of
the waters of this state, be equipped with vessel
pumpout facilities for the transfer and disposal of
sewage from marine sanitation devices. In imposing
this requirement, the regional board shall take into
account the number and type of vessels that use or are
berthed at the vessel terminal and whether there
exists at other locations pumpout facilities that have
a total capacity sufficient for, and are convenient
and accessible to, vessels that use or are berthed at
the vessel terminal. In addition, the regional board
may require any vessel pumpout facility to be equipped
with a meter for the purpose of measuring use of the
facility. All pumpout facilities installed after the
operative date of the statute adding this section
shall be equipped with a meter."
3. During dock reconstruction, discussions held between Mr. Mark
Howard, owner of Newport Landing at that . time, and
representatives of the City of Newport Beach regarding the
installation of a vessel pumpout facility at Newport Landing
Marina, as required by City Ordinance, resulted in the
construction of a sewer hookup for a pumpout installation.
4. No pumpout has been installed at the Newport Landing Marina.
5. In issuing this order, the Regional Board considered the
factors set forth in Section 776 of the Harbors and Navigation
Order No. 88-85 Page 2
Code. A further explanation is provided by Resolution No. 88-
89 and the staff report included in the agenda for the
Regional Board's July 8, 1988 board meeting.
6. This order requires the installation of vessel pumpout
facilities at an existing terminal, with no expansion of use
of the terminal, or the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such-, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code, Section 21000 et seq.) in accordance with Section 15301
and 15303, Chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in accordance with Chapter 6 of the
Harbors and Navigation Code, the owner and operator of The
Newport Landing Marina shall comply with the following
requirements:
1. Install a vessel pumpout at Newport Landing Marina, in a
location that is approved by the Executive officer.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout.
4. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at least
thirty days in advance of the change. In all cases, the
changes should be reported in writing within seven days after
the change.
5. Conform to the following time schedule for pumpout
installation:
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Indicate commitment to install pumpout. 9/1/88
Prepare plans and specifications for 10/l/88 10/15/88
pumpout installation. If the Executive
Officer does not approve of the pumpout
location, or determines the plans and -
specifications are inadequate, the
marina shall prepare new or supplemental
Order No. 88-85 Page 3
plans and specifications in accordance
with a schedule set by the Executive
Officer.
Submit plans and agreements for 11/1/88 11/15/88
pumpout maintenance.
Begin construction. 2/1/89 2/15/89
Complete construction. 3/1/89 3/15/89
Full compliance 3/15/89 4/1/89
-----------------------------------------------------------------
6. As the ownership of or operation of a vessel terminal may
change, the Executive Officer is directed to amend this order
to reflect said changes.
7. If, in the opinion of the Executive Officer, any part of this
order is not complied with in a reasonable and timely manner,
the Executive officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdiction, in accordance with Chapter 6 (commencing with
section 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commencing with Section 13000) of the Water
Code'.
8. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any- way preclude or
restrict a city, city and county, county, or'other public
agency, from adopting and enforcing any requirements for
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set by the
Regional Board.
I, James R. Bennett, Executive Officer, do hereby certify the
foregoing is a full, true, and -correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
JAMES R. BENNETT
Executive Officer
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-91
Requiring the De Anza Bayside Village Marina
300 East Coast Hwy., Newport,Beach, CA 92660
to Install a Vessel Sanitation Pumpout
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. The De Anza Bayside Village Marina, 300 East Coast Hwy,
Newport Beach, CA 92660, operated by De Anza Bayside Village,
300 East Coast Hwy., Newport Beach, CA 92660, a vessel
terminal in the vicinity of the Back Bay in Newport Harbor, is
not presently equipped with vessel pumpout facilities for the
transfer and disposal of sewage from marine sanitation
devices.
2. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required by the
regional board for the protection of the quality of
the waters of this state, be equipped' with vessel
pumpout facilities for the transfer and disposal of
sewage from marine sanitation devices. In imposing
this requirement, the regional board shall take into
account the number and type of vessels that use or are
berthed at the vessel terminal and whether there
exists at other locations pumpout facilities that have
a total capacity sufficient for, and are convenient
and accessible tof vessels that use or are berthed at
the vessel terminal. In addition, the regional board
may require any vessel pumpout facility to be equipped
with a meter for the purpose of measuring use of the
facility. All pumpout facilities installed after the
operative date of the,statute adding this section
shall be equipped with a meter."
3. De Anza Bayside Village Marina is listed in the City of Neport
Beach Pier Register as having 275 vessel slips, making it one
of the largest vessel terminals in Newport Bay.
4. A ratio of one pumpout per 300 vessels was used as guidance in
prioritizing vessel sanitation needs in Newport Bay. Thus De
Anza Bayside Village Marina has about as many slips as can be
handled by one vessel pumpout.
5. In issuing this order, the Regional Board considered the
factors set forth in Section 776 of the Harbors and Navigation
Order No. 88-91 Page 2
Code. A further explanation is provided by Resolution No. 88-
89 and the staff report included in the agenda for the
Regional Board's July 8, 1988 board meeting.
6. This order requires the installation of vessel pumpout
facilities at an existing terminal,. with no expansion of use
of the terminal, or the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code ' Section 21000 et seq.) in accordance with Section 15301
and 15303, Chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in accordance with Chapter 6 of the
Harbors and Navigation Code, the owner and operator of The
De Anza Bayside Village Marina shall comply with the following
requirements:
1. Install a vessel pumpout at De Anza Bayside Village Marina, in
a location that is approved by the Executive Officer.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout.
4. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at least
thirty days in advance of the change. In all cases, the
changes should be reported in writing within seven days after
the change.
5. Conform to the following time schedule for pumpout
installation:
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Indicate commitment to install pumpout.
9/l/88
Prepare plans and specifications for 10/1/88 10/15/88
pumpout installation. If the Executive
Officer does not approve of the pumpout
location, or determines the plans and
specifications are inadequate, the
marina shall prepare new or supplemental
Order No. 88-91 Page 3
plans and specifications in accordance
with a schedule set by the Executive
Officer.
Submit plans and agreements for 11/1/88 11/15/88
pumpout maintenance.
Begin construction. 2/1/89 2/15/89
Complete construction. 3/1/89 3/15/89
Full compliance 3/15/89 4/1/89
-----------------------------------------------------------------
6. As the ownership of or operation of a vessel terminal may
change, the Executive officer is directed to amend this order
to reflect said changes.
7. If, in the opinion of the Executive officer, any part of this
order is not complied with in a reasonable and timely manner,
the Executive officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdiction, in accordance with Chapter 6 (commencing with
section 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commending with Section 13000) of the Water
Code.
8. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any way preclude or
restrict a city, city and county, county, or other public
agency, from adopting and enforcing any requirements for
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set by the
Regional Board.
I, James R. Bennett, Executive Officer, do hereby certify the
foregoing is a full, true, and correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
JAMES R. BENNETT
Executive Officer
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-92
Requiring the Arches Marina
3333 West Coast Highway, Newport Beach, CA 92663
to Install a Vessel Sanitation Pumpout
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. The Arches Marina, 3333 West Coast Highway, Newport Beach, CA
92663, operated by Jordan M. Wank, 1800 N. Highland Ave.,
Hollywood, CA 90028, a vessel terminal in the vicinity of the
Turning Basin in Newport Harbor, is not presently equipped
with vessel pumpout facilities for the transfer and disposal
of sewage from marine sanitation devices.
2. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required by the
regional board for the protection of the quality of
the waters of this state, be equipped with vessel
pumpout facilities for the transfer and disposal of
sewage from marine sanitation devices. In imposing
this requirement, the regional board shall take into
account the number and type of vessels that use or are
berthed at the vessel terminal and whether there
exists at other locations pumpout facilities that have
a total capacity sufficient for, and are convenient
and accessible to, vessels that use or are berthed at
the vessel terminal. In addition, the regional board
may require any vessel pumpout facility to be equipped
with a meter for the purpose of measuring use of the
facility. All pumpout facilities installed after the
operative date of the statute adding this. section
shall be equipped with a meter."
3. -The Orange County Environmental Management Agency, leaseholder
of the Arches Marina, has requested that its lessee, Jordan M.
Wank, install a pumpout at the Arches Marina.
4. The fuel dock at the Arches Marina is a most convenient and
accessible to vessels in the area of the Turning Basin.
5. In issuing this order, the Regional Board considered the
factors set forth in Section 776 of the Harbors and Navigation
Order No. 88-92 Page.2
Code. A further explanation is provided by Resolution No. 88-
89 and the staff report included in the agenda for the
Regional Board's July 8, 1988 board meeting.
6. This order requires the installation of vessel pumpout
facilities at an existing terminal, with no expansion of use
of the terminal, or the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code, Section 21000 et seq.) in accordance with Section 15301
and 15303, Chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in accordance with Chapter 6 of the
Harbors and Navigation Code, the owner and operator of the
Arches Marina shall comply with the following requirements:
1. Install a vessel pumpout at the Arches Marina, in a location
that is approved by the Executive Officer.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout.
4. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at least
thirty days in advance of the change. In all cases, the
changes should be reported in writing within seven days after
the change.
5. Conform to the following time schedule for pumpout
installation:
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Indicate commitment to install pumpout.
9/l/88
Prepare plans and specifications for 10/l/88 10/15/88
pumpout installation. If the Executive
Officer does not approve of the pumpout
location, or determines the plans and
specifications are inadequate, the
marina shall prepare new or supplemental
Order No. 88-92
plans and specifications in accordance
with a schedule set by the Executive
Officer.
Submit plans and agreements for
pumpout maintenance.
Begin construction.
Complete construction.
Full compliance
Page 3
ll/l/88 11/15/88
2/l/89 2/15/89
3/l/89 3/15/89
3/15/89 4/l/89
6. As the ownership of or operation of a vessel terminal may
change, the Executive Officer is directed to amend this order
to reflect said changes.
7. If, in the opinion of the Executive Officer, any part of this
order is not complied with in a reasonable and timely manner,
the Executive Officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdiction, in accordance with Chapter 6 (commencing with
section- 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commencing with section 13000) of the Water
Code.
8. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any way preclude or
restrict a city, city and county, county, or other public
agency, from adopting and enforcing an . ements for
.y requir
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set by the
Regional Board.
I, James R. Bennett, Executive Officer, do hereby certify the
foregoing is a full, true, and correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
0
JAMES R. BENNETT
Executive Officer
California Regional Water Quality Control Board
Santa Ana Region
ORDER NO. 88-93
Requiring the American Legion Marina
215 15th St., Newport Beach, CA 92663
to Install a Vessel Sanitation Pumpout
The California Regional Water Quality Control Board, Santa Ana
Region (hereinafter Board), finds that:
1. The American Legion Marina, 215 15th St., Newport Beach, CA
92663, operated by the American Legion, 215 15th St., Newport
Beach, CA 92663, a vessel terminal in the vicinity of the
Newport Channel in Newport Harbor, is not presently equipped
. with vessel pumpout facilities for the transfer and disposal
of sewage from marine sanitation devices.
2. Section 776 of the California Harbors and Navigation Code
states:
"Every vessel terminal shall, as required by the
regional board for the protection of the quality of
the waters of this state, be equipped with vessel
pumpout facilities for the transfer and disposal of
sewage from marine sanitation devices. In imposing
this requirement, the regional board shall take into
account the number and type of vessels that use or are
berthed at the vessel terminal and whether there
exists at other locations pumpout facilities that have
a total capacity sufficient for, and are convenient
and accessible to, vessels that use or are berthed at
the vessel terminal. In addition, the regional board
may require any vessel pumpout facility to be equipped
with a meter for the purpose of measuring use of the
facility. All pumpout facilities installed after the
operative date of the statute adding this section
shall be equipped with a meter."
3. The City of Newport Beach, as the leaseholder of the American
Legion Marina, has the authority to require its lessee to
install a pumpout at the American Legion Marina, as a lease
condition.
4. The American Legion Marina has a location for a pumpout that
is convenient and accessible to vessels in the area of the
Newport/Rhine Channel.
5. In issuing this order, the Regional Board considered the
factors set forth in Section 776 of the Harbors and Navigation
Order No. 88-93 Page 2
Code. A further explanation is provided by Resolution No. 88-
89 and the staff report included in the agenda for the
Regional Board's July 8, 1988 board meeting.
6. This order requires the installation of vessel pumpout
facilities at an existing terminal, with no expansion of use
of the terminal, or the construction and location of limited
numbers of new small docks at which vessel pumpouts are to be
installed. As such, this order is exempt from the provisions
of the California Environmental Quality Act (Public Resources
Code, Section * 21000 et seq.) in accordance with Section 15301
and 15303, chapter 3, Title 14, California Administrative
Code.
IT IS HEREBY ORDERED that, in.accordance with Chapter 6 of the
Harbors and Navigation Code, the.owner and operator of the
American Legion Marina shall comply with the following
requirements:
1. Install a vessel pumpout at the American Legion Marina, in a
location that is approved by the Executive Officer.
2. Install a meter on said pumpout.
3. Provide for the upkeep and maintenance of said pumpout.
4. Report any change in ownership and in the person responsible
for operating the facility. Where possible, any changes in
ownership or operation should be reported in writing at, least
thirty days in advance of the change. In all cases, the
changes should be reported in writing within seven days after
the change.
5. Conform to the following time schedule for pumpout
installation:
TIME SCHEDULE FOR PUMPOUT INSTALLATION
-----------------------------------------------------------------
REPORT OF
COMPLIANCE COMPLIANCE
TASK DATE DUE DATE
Indicate commitment to install pumpout.
9/1/88
Prepare plans. and specifications for 10/l/88 10/15/88
pumpout installation. If the Executive
officer does not approve of the pumpout
location, or determines the plans and
specifications are inadequate, the
marina shall prepare new or supplemental
Order No. 88-93 Page 3
plans and specifications in accordance
with a schedule set by the Executive
Officer.
Submit plans and agreements for 11/1/88 11/15/88
pumpout-maintenance.
Begin construction. 2/1/89 2/15/89
Complete construction. 3/1/89 3/15/89
Full compliance 3/15/89 4/1/89
6. As the ownership of or operation of a vessel terminal may
change, the Executive Officer is directed to amend this order
to reflect said changes.
7. If, in the opinion of the Executive Officer, any part of this
order is not complied with in a reasonable and timely manner,
the Executive officer may take appropriate enforcement action,
recommend appropriate enforcement action to the Regional
Board, or refer the matter to any other agency which has
jurisdiction, in accordance with Chapter 6 (commencing with
section 775 of Division 3 of the Harbors and Navigation Code
and Division 7 (commencing with Section 13000) of the Water
Code.
8. The implementation of a vessel pumpout program by the Regional
Board should not be construed to in any way preclude or
restrict a city, city and county, county, or other public
agency, from adopting and enforcing any requirements for
vessel pumpout facilities, provided that those requirements
are no less stringent than the requirements set by the
Regional Board.
I, James R. Bennett, Executive Officer, do hereby certify the
foregoing is a full, true, and correct copy of an order adopted
by the California Regional Water Quality Control Board, Santa Ana
Region, on July 8, 1988.
JAMES R. BENNETT
Executive Officer
P __`IMIT NO.
OPEDGING APPLZCATION
Project Lccation: 215 15th Street
C-abic Yards to be Dredged: 300
method o f oredgi ng: H=,j"%jjjj j , glit-t.
.1
Nature of Dredged Material: Sara/2,11t
Disposition of Dredged Material: tarp;�n-"t to beach reclamation -
Method of Mater-Jal 0.46simas ition: pimeline transmort
T=biditv control method:
of dredging on contiguous bulk1heading and beaches
.Reinforce/mrotect bulk -head -restore sand to derleted beach
Mark Sites hereby state that I have read the u. S.
(crint name)
C ,"or -s of Engineers oermit for maintenance dredging in I'llewport Har6lcr,
City of Newrort Beach and Orange County Harbors, Beaches a. -,d Parks oisi:ri
(LE am-olicable) permit for maintenance dredging and th-- 7 aCCe= th
I . I
=Zovisions therein. Additionally I quarant-ee that the proposed dredging
will nct occur because of any altering of existing use a, -E the affected
zone.
Ampr� QR -n ��.gj or Pn,,;t 291
�APPI!cant, -type narme) (Contractor-ty-e Tnar,,Z)
1/4/88
(Date)
S i gned:
I Cdnt--r-actor's
Renresentative
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PERMIT ISSUED SUejFCT ra
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PT '11T NO. 2 -
DREDGING APPLICATION
Project Lccation: 215 15th Street
Cubic Yards to be Dredged: 65
Method of Dredging:
Na ture of Dredged Material.:
Disposition of Dredged Material: t—ans=rt to 'heach recla-,-.qation
M e thod of Material 043DOS4''
Iticn:
Control Method:
ct Of dredging on contiguacus bulkheadJng and beaches
Retmforce/mrotect bulkhead -rest o -r -e san� to-de-pleted beach
—Mlark Sites hereby state that I have read t-h.e u. -a. "%rr1v
kprint name)
of 7ng'neers oe=i4- for maintenance dredging in ewoo,-+.
City of Newcort Beach and Orange Ccunt-y Harbors, Beaches and -marks oisz�-i
(L -off applicable) per.mit, far 6."" � -
I- - maintenance dredging and ".,- Z -, accez-,_ the
m-rovisions therain. A d4tionally : c_uarant-ee -that the p,�=osad
Ad
will no- -c-ur because of any a!te_-,J..ng oz axis-4nq use 0= t.,,Ie ected
zone
American Legion Post 291
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Pit -Y, -00 NEWPORT BEACH
HARBOR PERMIT
PERfMISSIOK IS HE"RESY GPANTED TO C01441STRUCT AW
IMMUTAIN '.rHE FACILiTY SV,,31,%ry-z '02'j TH'�� R-EvcnSE .4ERr-OF
AT THE SITE
,TED, -ra THV PFRIOWSIONS 0.
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ANY -l'--PEC4*,,AL CORMOV0,14-1 �-:C�T,;:D V'KE5,EOPI- THM FIEERN;
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THE Crry -QN8iE-h',T
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AND THIS FERr�qj2,r f?ply 21�� j,
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IN ACCORDANCE W�VF-zi TiTLZ- 17 OF
E VAUH�C;EFAL CODE.
CITY HA S
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PERMIT NO.
Corps Of Engineers Pem*
Orange County Pirmit
Other --�, e.'�"ev qc4&
PERMIT ISSUED SUBJECT TO
DREDGE MATERIAL BEING
HAULED TO SEA
PLACED ON BEACH
-_
MEMORADUM
Newport Beach Fire and Marine Department
Marine Environment Division
Date: July 1, 1997
To:
Chief Tim Riley
From:
Deputy Chief Tony Melgm
Subject:
"PW,
101 "AL11111i
A
Following is an outline of the American Legion Lease file. Because of the time
constraints, I wasdt able to clean its up.
The Site
Briefly, the site encompasses 1.54 acres, 350 feet of water frontage and 109 feet of
street frontage. The original lease was signed in September in 1940, extended in
February in 1951, extended again in January of 1976 and terminates March 15,
2000. The physical plant consist of the American Legion Building, the parking
area which is comprised of 53 car spaces and 45 dry boat spaces, a small Boy
Scout hut., some storage garages and maintenance room, launch crane and
launch area, picnic area, a small sandy beach, approximately 330 feet of
bulkhead and 46 slips which calculate to approximately 1,255 feet of lineal
berthing feet. Again, the lease expires in the year 2000 and provides in part that
the American Legion pay the City $300.00 per month for the building, $1,700.00
per year for the parking spaces, 40% of the gross revenue for the marina slips,
50% of the gross revenue from the dry boat storage and lockers. Section 14 of the
lease states ""Upon the expiration or termination of this lease any additions or
improvements made upon the demise present shall become the property of the
lessor"'.
Audits
Section 19 provides, "If any party deems it necessary at the end of the yearly
audit all rental rates may be negotiated and adjusted by mutual agreement of
both parties. The file does not reflect that this has ever been done. There was
one letter that indicated there had been an audit in 1983 of the parking revenue.
I was unable to contact Glenn Everroad to find out if there had been additional
audits but talked to Dan in Administrative Services and he was not aware of
any. I Spoke with Craig Bluell and he indicates that they give us a monthly
survey of the areas they are responsible for rentwise, then a yearly summary of
that. He had no information on whether they had been audits or not.
Rent
Their current income is based on the linear footage of the existing docks and the
number of dry storage spots. Slips are currently at $11.00 a foot, dry storage at
$4.40 a foot. The gross rents received on the slips would be $165,660.00 and the
gross receipts on the dry storage would be $35,640.00, for a gross total of
$201,300.00. Based upon the lease percentages, the City receives $84,084
annually. If the City did nothing and kept the rent at its current rate and took
over the marina, our gross would be $201,300. If we raised the slip fees to what
we are currently charging at the Balboa Yacht Basin our gross would be
$254,010. As far as the operation of the premises it could be managed by our
existing marina manager, however, it would probably be necessary to add at
least another 1/2 year of seasonal employee time and possibly upgrading the
position to full time. There would also be some M & 0 increased probably in the
20 to 30 thousand dollar range.
The Existing Marina
An inspection of the docks at the American Legion found that they are of wood
construction., with concrete pilings and the floats are styrofoam -cement covered.
The marina appears to be the original construction which took place in 1958 and
looks to be relatively well maintained., however, if s very old. It could be
maintained in its current condition, serviceable and safe for 5 to 10 years based
on our experience with the Balboa Yacht Basin. If we elected to rebuild it, it
could be maintained during a loan application period, then demolished and
rebuilt using State Boating and Waterways funds. Currently, those monies are
available to governmental agencies at 4 %. It would probably be prudent at that
time to look at the possibility of reconfiguring the existing marina. Right now
the marina is made up of 15 slips in the 30 foot range and 31 slips in the 25 foot
range. Experience around the harbor has indicated that the highest vacancy
rates are under 30 feet, so we should be considered reconfiguring the marina to
accommodate larger boats. In addition to reconfiguring, it might be desirable to
look at adding 35 to 40 slips west of the existing marina., in front of the marina
trailer park. It could most likely be done with a row of slips in the 40 foot range
without having to bulkhead the existing beach.
Consultant Stu4y
I looked through the excerpts that Peggy gave me regarding the consultants
study, on page 28 under "American Legion", they indicate in that there is only
one other public storage facility for boats on the peninsula and, in fact, all other
marinas are found on the opposite side of Newport Bay. There are a number of
small marinas, starting at the Cannery and going down to the Fun Zone. Under
the section dealing with the "Hotel Marina", on page 1 of the report, in the first
paragraph under market considerations, states the Balboa Yacht Basin is
approximately 85% occupied, currently at 98% occupied. Again, the end of that
paragraph indicates that the peninsula offers only private docks that are not
available to the public, that is again not the case.
To: The Honorable Mayor and
Members of the City Council -2- February 9, 1968
Lease dated April 20, 1936.
The City leased tidelands fronting on the Bay easterly of 10th
Street for a term of 25 years,to the Legion. -
Lease dated.Setember 2. 1940.
The lease of April 20, 1936, was cancelled by mutual agreement of
both parties and a new lease was executed for the present American
Legion property at 15th Street and Bay -Avenue for a term of 25
years ending on, August -31, 1965. The lease did not provide for
any -money to be paid as rent, but stated that as consideration to
the City the Legion would construct a building on the property to
be used for civic, educational and recreational purposes.
Lease dated February 26, .1951.
The principal change accomplished by this lease was to extend the
termination date of the lease for 11 years to January 31,* 1976.
It also included a new provision requiring the Legion to provide.
public liability insurance at its expense and to reimburse the
City -for fire insurance premiums. Rental was set at $1.00 per year.
Agreement for construction of boat slips dated February 24, 1958,
between the City, the American Legion Post,and Trautweiri Bros.
The principal terms and provisions of -this agreement are as follows.
10 Trautwein Brothers agreed to construct slips, docks and ramps
In accordance with an attached drawing.
2. The Legion agreed to pay Trautwein $35,000 with interest at
:the rate of 8%/ per year in monthly installments.
3. The Manager of the City's Marinapark has the right of first
refusal with respect to renting the boat spaces (both dry and
wet storage) for a period of one day on all vacancies.
Upon payment by the Legion of its ' entire obligation to Traut-
wein, the City shall receive 10% of the gross monthly revenue.
I. HISTORY OF NEWPORT HARBOR LANN BOWLING ASSOCIATION LEASE WITH CITY
on January 16, 1939 the City of Newport Beach leased the lawn bowling site to Mr. A. J.
Twist and Fred Storey of Newport Beach for a cmsideration of $300 and a term of three
years, or until mutually terminated. The land was not developed at the time as a lawn
bowling green. Under the terms of the lease, the City agreed to fill the land with top-
soil and prepare the site for planting and to fuTnish free water for the maintenance of
the bowling green. The lessees agreed to plant the seed and maintain the green at their
own expense for the term of the contract.
On March 4, 1940 two actions took place: (1) By City Council Resolution No. 1777, the
City accepted from Mr. A. J. Twist and Mr. Fred Storey the sum of $100 and all the im-
provements that had been installed on the property, which were valued at $400, as payment
of the $300 debt incurred in the January 16, 1939 Lease Agreement. (2) The City entered
into a Lease Agreement with the newly organized Newport Harbor Lawn Bowling Association,
which lease seeks property for a term of two years, at a cost of $10 per year. The
Association agreed to maintain the green and the City agreed to -furnish water, free of
charge, and maintain'the adjacent improvements and grounds.
On July 22, 1953 the City entered into another Agreement with the Lawn Bowling Associa-
tion which allowed the Association to use the green free of charge. The Association
agreed to pay $3.00 per member every six months toward the maintenance of the green.
The Agreement was to run until terminated by either party.
On October 14, 1958 the City entered into an Agreement which assumed that the City had
been responsible for maintaining the green. The Agreement transferred the responsibility
of maintaining the green to the Association. The City agreed to pay $125 per month for
maintenance of the green. The term of the Agreement was from October 14, 1958 to June
30, 1959.
On June 8, 1959 the October 14, 1958 Agreement was amended to allow the Lawn Bowling
Association to keep all membership fees for the purpose of maintaining the green. How-
ever, any other fees collected were to be sent to the City Finance ' Director. The fees
required under the July 22, 1953 Agreement, however, have never been paid to the City,
but had been used for maintenance of the green.
The June 8. 1959 Agreement allowed the use of those funds for maintenance purposes in
the future.
On July 13, 1959 the prior Maintenance Agreement was reaffirmed and to the year June 30,
1960. The Association agreed to maintain the green and related facilities including the
fence and equipment used in connection with the lawn bowling green. The City agreed to
pay the Association $125 per month for maintenance for the first year, $100 per month
for the second year and $75 per month the third year.
On August 19, 1968 an Agreement was executed with the Lawn Bowling Association to continue
the City contribution of $75 per month to run, until July 1, 1973 or until either party
terminated the Agreement by giving the other party 30 days written notice.
11. HISTORY OF GIRL SCOUr LEASE WITH CITY
The City of Newport Beach entered into a Lease Agreement with the Girl Scouts
on January 12, 1948 to lease from the City a portion of property on the northerly
side of Balboa Boulevard between l7th and l8th Streets, being Lots 3, 4, 5 and 6
in Block 117, Section B of Newport Beach.
The lease provisions provided for recreational, educational, community and civic
purposes, both for the lessee and for the general public. There were no provisions
for rental, however, all of the improvements�on the premises were to be conveyed
to the lessor upon termination of the lease.
The original lease was amended on October 16, 1957,, renewed on December 7, 19S7
and renewed again December 1, 1967.
The cu.rrent lease expires November 30, 1977.
The City received original title for this property througka deed from the Pacific
Electric Railway on August 12, 1919. The area contains approximately 10,000 square
feet and has a frontage on Balboa Boulevard of 100 feet, The lessee agrees to keep
the building in good condition and repair and keep the surrounding grounds of that
building in a neat and sanitary condition and free of all refuse. :
Lessee is to -yield up immediately the possession of the property on termination
of the lease or pay $300 per month as liquidated damages for;lsuch tine as posses-
sion is withheld.
Lessee is to pay all public improvement assessments made by the County Assessors
office due, or to become due, and they are to pay all water charges, meter charges
and other charges and all City, County and State taxes on the improvements and the
leasehold interest.
The lessee is to maintain insurance for liability or financial loss from injury
to persons injured on the lease premises of not less than $100,000 for any one
accident.
Lessee will also reimburse the lessor for the cost of maintaining fire insurance
on the building and improvements in the amount determined to be adequate by the
lessor.
III. HISTORY OF MARINAPARK LEASE WITH CITY
The City acquired the exiSting')k1arinapark property frm the Pacific
Electric Land Company an July 7, 1919. The parsel was originally
utilized as a City campground until 1944.
On March 6, 1944 a lease was granted to the South Coast Company
for one year for the purpose of installing wharfs for berthing
and repairing of ocean-going vessels. On December 26, 1945 the
City Council approved a recomendation that the City campground
be operated as a trailer park. On May 9, 1955 the City Council
adopted a plan providing for the development of a trailer park
and also a public beach between 16th and 19th Streets. Various
improvements were made between 19S5 and 1957 to bring the park
to its present development status.
The area is located between 15th and 19th Streets with the
address of 1770 West Balboa Boulevard.
There are approximately 5 acres with 920 feet water frontage
and 130 feet of street frontage on Balboa Boulevard.
Parties to the lease are the City of Newport Beach as lessor
and individual tenants in Marinapark as lessees. The original
leases were adopted for a three-year period and a standard
format for lease documents was adopted by the City on June 9,
1969. The present leases in existence were for a period of
three years, from July 1, 1969 to June 30, 1972, with the option
of the lessee to extend the lease for an additional two years.
All leases in Marinapark will terminate on June 30, 1974.
2nd LEASE AMENDMENT
to the 1975 Lease between the City of Newport Beach
and the American Legion Post 291 (Newport Harbor)
This Second Lease Amendment, made and entered into this 24th day of
October, 2000, by and between the City of Newport Beach, a chartered
municipal corporation ("'CITY") and Newport Harbor Post 291 of the American
Legion ("'LEGION") is as follows:
WHEREAS, Legion has operated a marina and clubhouse at 215 15th
Street in Newport Beach since September 1940 and
V%THEREAS, City owns or holds in trust the property associated with the
clubhouse and marina and has leased the premises to Legion under a lease
executed March 10, 1975 ("1975 Lease") and .
WHEREAS, the 1975 Lease was to expire on March 15, 2000 but was
extended to March 15, 2001 (""First Lease Amendment")- and
WHEREAS, City and Legion desire to match the Legion�s Lease with the
term of the Marinapark Lease Extension, which allows Marinapark residents to
remain at Marinapark to March 15, 2002;
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and
Legion hereby agree to execute the 2.d Lease Amendment to the 1975 Lease (as
amended by the First Lease Amendment) as follows:
II. TERM
... The term of this lease will commence on March 15,1975 and expire on
March 15, 2002.
IN WITNESS THEREOF, the parties hereto have executed this 2nd Lease
Amendment as of the day and year first above written.
CITY OF NEWPORT BEACH
ATTEST:
LaVonne Harkless, City Clerk
AMERICAN LEGION POST 291
Dennis Lahey, Commander
Attachment A
1st LEASE AMENDMENT
to the 1975 Lease between the City of Newport Beach
and the American Legion Post 291 (Newport Harbor)
This First Lease Amendment, made and entered into this Z 7, day of
August, 2000, by and between the City of Newport Beach, a chartered
municipal corporation ("CITY") and Newport Harbor Post 291 of the American
Legion ("LEGION") is as follows:
WHEREAS, Legion has operated a marina and clubhouse at 215 15th
Street in Newport Beach since September 1940 and
WHEREAS, City owns or holds in trust the property associated with the
clubhouse and marina and has leased the premises toLegion under a lease
executed March 10, 1975 ("1975 Lease"') and
WHEREAS, the 1975 Lease expired on March 15,2000; and
WHEREAS, City and Legion desire to extend the 1975 Lease under
identical terms for the period of one (1) year from the March 15, 2000 lease
expiration date and
WHEREAS, this one (1) year extension shall cause the 1975 Lease to
expire on March 15, 2001.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and
Legion hereby agree to execute the First Amendment to the 1975 Lease (Exhibit
A) as follows:
II. TERM
*** The term of this lease will commence on March 15,1975 and expire on
March 15, 2WO 2001.
IN WITNESS THEREOF, the parties hereto have executed this Lease
Amendment as of the day and year first above written.
Page 4
CITY OF NEWPORT BEACH
LaVonne Harkless, City Clerk
AMERICAN LEGION POST 291
_L_E_A_S_E_
THIS LEASE, made and entered into this day
of 1975,,.,by and between the CITY OF NEWPORT
BEACH,.a chartered municipal corporation, hereinafter referred to
as "Lessor", and NEWPORT HARBOR POST NO. 29.1 OF THE AMERICAN LEGION,
a California corporation, hereinafter referred to as "Lessee":
R E C I T A L S:
A. Lessor holds title to certain harbor frontage and
tidelands,.together with certain uplands abutting thereon'located
at 15th St.:eet and West Bay, City of Newport Beach, County of Orange,
State of California, hereinafter more particularly described.
B. -Lessee has constructed substantial improvements upon
the property consisting of certain buildings, boat anchorages,
moorings, slips, docks, ramps, launching facilities, parking lot,
and dry boat storage which Lessee presently operates and maintains
I
pursuant to a lease between Lessor and Lessee dated February 26, 1951.
The term of the existing lease expires on JanuAry 31, 1976. Lessee
has requested Lessor to extend the term of the lease for an additional",
tweftty-five (25) years. -
C. It is the judgment of the City Council of.the City of
Newport Beach that the uplands cannot be used without the eidelands,
nor can said tidelands be used without the uplands abutting thereon;
and it is further the judgment of Lessor that the leasing of the
whole of said lands hereinafter described as.one parcel is necessary
for the proper development and use of said lands, water frontage
and tidelands for recreational, public, civic' beaches, commerce,
navigation and fishery purposes.
D. It is the judgment of the City Council of the City of
Newport Beach that the leasing of said lands to Lessee, upon the
conditions in th is'agreement specified, is not inconsistent with
tile trust imposed such por-u.1-un of tl�
.-'reinafter
dQ scribed, which may.constitute tidelands, an.. t is further the
judgment of the City Council of the City of Newport Beach that the
leasing of said uplands as hereinafter described upon the conditions
in this agreement specified, is for a public purpose and does not
violate the Constitution of the State of California and is p . ermis-
sible under State law.
E. Lessor proposes to lease to Lessee the premises
described hereinafter, and Lessee is willing to accept said lease on
the terms and conditions hereinafter set forth. This lease does
not violate Section 1402 of the Newport Beach City Charter in that
this lease constitutes a releasing of property under lease at the
effective date of said Charter.
NOW,.THEREFORE, IN CONSIDERATION OF THE FOREGOING RECI-TALS
AND THE MUTUAL COVENANTS set forth below, Lessor and Lessee hereby
agree as follows:
-DESCRIPTION OF LEASED PREMISES
Lessor hereby leases, and Lessee does hereby.accept a
lease of the property, buildings and related parking and boat
facilities located at 15th Street and West Bay, as more particularly
des.cribed in Exhibit "A", which is attached hereto and made a part
herein by this reference.
TERM
in order to comply with Section'420 of the Newport Beach
City Charter which restricts the leasing of property for a period
of more than twenty-five (25) years without prior voter approval,
the existing lease between Lessor and Lessee dated February 26, 1951,'
may be extended for a period of twenty-four (24) years -and two (2)
months, which would constitute a total period of twentY7five (25)
years from the. expirationdate of the existing lease, to wit, -
January 31,.1976. The term of this lease will commence on I March 15,
1975, and expire on March.15,2000.
III. USE
Lessee shall use the demised premises, together with the
buildings, parking.and boat and marine faciliti6s located thereon
-2-
-for the purposes of managing, operating and conducting the activi-
ties of the American Legion. In and as a part of its duties in
managing and operating said American Legion Post, Lessee shall
not discriminate as to race, color, creed or the civil rights and
liberties of individuals subject to the normal rules and. operating
procedures of the American Legion. Lessor retains the right to
locate an Acquatic Center in the area formerly used by the
Newport Harbor Lawn Bowling Association, as more accurately
depicted on Exhibit "B" attached hereto and made a part herein
by this reference. Lessee covenants and agrees to permit Lessor
to use its boat launching.facilities in connection with said
Acquatic Center.
IV. USE AS A COMMUNITY CENTER BY OTHER ORGANIZATIONS
When the demised premises and buildings are not in use
by the Lessee, the premises and buildings shall be available for
the use as a community -center and recreation Instruction�.facility
by the City Parks, Beaches and Recreation Department on a first -
priority basis, and.by local organized community, civic related
organizations in accordance with reasonable rules, regulations,*
fees and scheduling to be established by Lessee with the approval
of the City Manager.
V. TYPE OF BUSINESS ACTIVITY
Lessee shall not grant any concession, license, permit
or privilege for the conduct of.any busi ness or other operation
for profit or alter.the use or type of service. on the demised
premises without the prior approval of the City Manager.
VII. TAXES AND UTILITIES
Lessee shall promptly pay for all utility services
furnished to it and shall pay before delinquent any general and
special taxes or assessments or other governmental charges, if
any, which may be levied on the demised premises or furnishings
therein, or improvements thereon, or any possessory interest therein
arising out of or based upon the leasehold interest throughout the
term hereof, or may be imposed upon Lessee as a.result of its
operations under the lease. Satisfactory evidence of such payments
shall be delivered to Lessor upon demand therefor.
VIII. MAINTENANCE OF LANDSCAPING AND'IMPROVEMENTS
Lessee coven,ats and agrees that dur ing the�term of
this lease it will, at its own cost and expense, maintain.the
gro . unds, landscaping, and all buildings,..and an' other improve -
y
ments of any kind in existence or nature constructed or installed
on the demised premises by the Lessee, at a high standard of
m I aintenance and repair. Maintenance shall include painting of all
buildings and boat facilities. If in the judgment of the Lessor,
such standards of maintenance and repair -are not being maintained,
Lessor may at its option, after written notice thereof to the
Lessee and Lessee's failure to commence in good faith to remedy
the same within the time herein provided and thereafter diligently
prosecute the same to completion, elect to correct any deficiency,
whether it be in reference to grounds, landscaping, buildings or
improvements. Lessee covenants and agrees to pay to the Lessor
on demand any and all sums expended by it in correcting any such
deficiency. If, in the judgment of the Lessor, the disrepair or
lack of maintenance constitutes an emergency, the notice herein
provided shall be a 24-hour notice to remedy; in a.11 other cases
it shall be a 5 -day notice.
-4-
IX. INSURANCE - HOLD HARMLESS
Lessee shall save and keep Lessor, its officers, agents
and employees free and harmless from any and all claims or demands
of any name or nature whatsoever arising out of, or incident to,
the use and occupancy of the premises herein described by Lessee.
I In partial performance,of this obligation by Lessee, Lessee shall
procure and at all times during the term of this Lease maintain in
full force and effect a policy, or policies, of public liability
and property'damage insurance protecting the City of Newport Beach,
its officers, agents and employees from all claims or'demands for
damages. The policy,*or policies, shall provide for not less than
Two Hundred Thousand Dollars ($200,000.00) for injury or death of
one person; Five Hundred Thousand Dollars ($500,000.00) for injury
or death of two or more persons; and Fifty Thousand Dollars
($50,000.00) for damages to property. The City Manager may require
an increase in the amount ofinsurance from time to time in
accordance with changes in economic conditions. Attached to said
policy shall be an endorsement which shall provide as follows:
"Within the limits set forth in this policy,
to indemnify and save the City.of Newport Be ach, its
officers, agents and employees, free and harmless from
all damage, claim, loss or liability of.any.name or
nature -whatsoever which the City�of Newport Beach, its
officers, agents or employees may hereafter sustain or
incur, or may be imposed upon them, arising out of, or
in any way connected.with, the use or occupancy by the
insured, its servants, agents and employees, of the
premises described in a lease granted to insured by the
City of Newport Beach."
Lessee shall furnish, and maintain withthe Lessor, either
I
the original policy, or policies, or a certified copy, or copies,
thereof. The policy, or policies, shall be approved as to sufficiency
by the City Manager and as to form by the City Attorney.
the same or any na.rt at- any atte;ja to or
s
protect the Lessoj- interest under tf_L�
Xi. COMPLIANCE WITH LAWS
Lessee covenants and agrees to comply with,all'rules,
regulations, statutes, ordinances and laws of the State of California,
County of Orange, the City of NewportBeach or any other governmental
body or agency having lawful jursidiction over the leased premises
or the business, enterprises or activities conducted thereon.
XII. ASSIGNMENT
Except as provided in paragraph IV hereinabove, Leg.see
shall not assign, transfer,,sublease or give any grant of control
of this lease or demised premses,_or.any part thereof, either
voluntarily or involuntarily, unless first approved by th e City
Council.
XIII. 'NON-COMPLIANCE
If the*Lessee.fails to comply with any of the terms and
conditions of this Lease,.the Lessor may give to the Lessee a
notice in'writing of such failure and specify therein the particu-
lars in.which Lessee has failed�to comply with the provisions of
this Lease. If the Lessee fails for a period of thirty (30) days
after the giving of such notice to comply with the provisions of
this Lease, the Lessor mayl at its option, terminate this -Lease,
and all rights of the Lessee therein shall cease and -terminate and
the Lessee shall immediately thereafter deliver possession of the
premises to the Lessor. . &
XIV. SURRENDER OF PREMISES UPON EXPIRATION'bR
TERMINATION
Upon the expiration of the term of this lease or
sooner termination thereof as herein provided, Lessee shall deliver
possession of said demised premises to Lessor in the same condition
as delivered to Lessee, reasonable wear and tear excepted, and
also excepting any.changes or alterations authorized or approved
in writing by theCity Manager or City Council. Upon the expiration
or termination of this lease, any additions or improvements made
upon the demised premises shall become the property of the Lessor.
XV. DEFAULT AND TERMINATION OF LEASE
A. Default
Time and each of the terms, covenants and
conditions hereof are expressly made the essence of this Lease.
If the Lessee shall fail to comply with any of
the terms, covenants, or conditions of this Lease, including the
payment of rental herein reserved, at the time and in the amount
herein required, and shall.fail to remedy such default within.'
thirty (30) days after service of a written notice from Lessor so
to do if the default may be cured by the payment of money, or to
commence in good faith to remedy any other default within thirty
(30) days and thereafter diligently prosecute the same to completion,
or if Lessee shall abandon or vacate the leased premises, Lessor
may, at its option, and without further notice or demand, terminate
this Lease and enter upon the leased premises and take possession
thereof, and remove any and all persons therefrom with or without
process of law.
B. Surrender of Possession Upon Termination
Lessee covenants and agrees that upon the
expiration or sooner termination of this Lease, the Lessee will
peaceably surrender -the leased premises with all...buildings and
improvements, in the same condition as when received or constructed,
reasonable use - and wear thereof , and damage by f ire, Act of God,
or by the elements excepted. Lessee expressly waives any right
which it may have to relocation assistance or costs in vacating
the demised premises. Any improvements built, constructed or
placed upon the leased premises by the Lessee, or anyone hold'ing
by, under, or through it, shall remain on the leased premises and
become the property of the Lessor without any cost to Lessor upon
the termination of this Lease, whether by lapse of time or by
reason of default.
-7-
C. Remedies Cumulative
The rights, powers, elections and remedies of
the Lessor contained in this Lease shall be construed as cumulative
and no one of them shall be considered exclusive of the other or
exclusive of any rights or remedies allowed by law, and the
exercise of one or.more rights, powers, elections or remedies shall
not impair or be deemed a waiver of Lessor's right to exercise any
other.
D. No Waiver
No delay o.r omission of the Lessor to,exercise
any right or power arising from any omission, neglect or default of
the Lessee shall impair any such right or power or shall be
construed.as a waiver of any such omission, neglect or default on
the part of the Lessee or any acquiescence therein.
No waiver of any breach of any of the terms,
covenants, agreements, restrictions or conditions of this lease
shall be construed as a waiver of any succeeding.breach of the same
or of any of the terms, covenants, agreements, re strictio'ns or
conditions of this lease.
E. Hoiding Over
It is mutually agreed that if the Lessee shall
hold over after the expiration of this lease for any cause, such
holding over shall be deemed a tenancy from month to month only,
upon the same terms, conditions and provisions of this lease.
XVI. NOTICES
'It is mutually agreed tha t any notice or notice's provided
for by this lease or by law, to be given.or served upon the Lessee,
may be given or served by mail, registered or certified, with
postage prepaid, and if intended for the City of Newport Beach,
addressed to the City Manager, Newport Beach, California 92660,
or at such other address as may be hereafter furnished to the Lessee
in writing, and if intended for the Lessee, addressed to its Director
at 211'15th Street, Newport Beach, California, 92660 or at such
other address as may be hereafter furnished to the Lessor in.writing;
ME
or it may be served personally upon any corporate officer of Lessee
or person charged with general management responsibilities in
connection with the leased premises; and that any notice or notices
provided by this lease or by law to be served upon Lessor may be
served personally upon the Mayor of the City of Newport Beach or
the City Clerk of said City. Such service shall be deemed complete
at the expiration of forty-eight (48) hours from and after the
deposit in the United States mail of such notice, demand or
communication.
XVII. RECORL_j AND ACCOUNTS
A. Bookkeeping
Lessee covenants and agrees that it will, at
all times during the term of this lease, keep or cause to be kept
true and complete books, records and accounts of all fin'an cial
transactions in the operation of all businesses concessions,
services and activitiesof whatever nature conducted on or from the
demised premises.
Inspection of Records
All books, records and accounts of every kind
and nature kept by Lessee, its agents or, employees relating to the
operation of any business, concession, service or activity'conducted
on -or from the demised premises shall, at all reasonable times, be,
open -and made available for inspection or audit.,., by the Lessor, its
agents or emplovees,?:upon request.
C. Audit
Lessee covenants and agrees to furnish to Lessor
annually, a -non -certified statement showing*the annu"al gross
income derived from the marina slips,- the dry boat'storage
facilities, the parking lot, and any.other business activiti con-
ducted on the demised premises, and the disbursement o f. said annual
.gross.income. Said statement shall'be.furnished to Lessor within
thirty (30) days following the completion of Lessee's fiscal year..
The cost of said audit shall be borne by Lessee..
XVIII. :''RENTAL
A. Building Facilities
Lessee covenants and agrees to pay'to Lessor
a minimum rental for the use and occupancy of the building facili-
lvo'�' ties located on the leased premises in the sum of Th ree Hundred
Dollars ($300.00) per month, payable on the first day of;each
month commencing with the effective date of this.lease.
B. Parking Lot
Lessee covenants and agrees to pay to Lessor
one hundred percent (100%) of the revenues derived from the parking
lot, payable monthly. Lessee shall purchase a minimum of
z
twenty-six (26) parking spaces at a fee consistent with City,,parking
lot charges. It is further agreed that thirty-six (36) parking
stalls shall be made avdilable for use at no cost to Lessee or
-p
by those persons renting a boat slip from Lessee.
C. Marina Slips
Lessee covenants and agrees to pay to Lessor
the sum of forty percent (40%) of the gross revenues received from
`.the marina slips, payable monthly. If it is mutually determined
by the parties hereto that additional boat slips are required,
Lessee will finance their construction with the additional revenue
derived from the rents being used to retire the debt incurred
for the costs of the new slip construction. Upon payment of the
entire debt incurred for -the costs of new slip construction,
Lessee shall pay to Lessor the sum of forty percent (40%) of the
gross revenues derived from the new marina slips.
D. Dry Boat Storage
Lessee covenants and agrees to pay to Lessor
the sum of fity percent (50%) of the revenues received from the
"dry boat storage facilities and lockers, payable monthly. If it
is determined by the parties hereto that additional dry boat storage*
and locker facilities are required, Le..ssee will finance their con-
struction with the additional revenue derived from the rents being used
to retire the debt incurred for the new dry boat storage and locker
-10
'j
facilities. Upon'payment of the entire debt incurred for the cost
of the new dry boat storage and locker facilities, Lessee shall
pay to Lessor the sum of fiftypercent (50%) of the gross revenues
derived from the new dry boat storage and locker facilities.
XIX. RENEGOTIATION OF RENTS
If either party deems it necessary at the end
of the yearly audit, all rental rates may be renegotiated and
adjusted by mutual agreement of both parties.
XX. MISCELLANEOUS
A. Inurement
Each and all of the covenants, conditions and
agreements herein -contained shall, in accordance with the context,
inure to the benefit of Lessor and apply to and bind Les see, its
respective heirs, legatees, devisees, executors, administrators,
successors, assigns, licensees, permittees, or any person who may
come into possession or or-�upancy of said premises or any part
thereof in any manner'whatsoever.. Nothing in this paragraph shall
in any way alter the provisions herein contained against assignment
or subletting or the granting of licenses or concessions.
B. Captions
The captions of paragraphs and subparagraphs of
this Lease are for convenience on-ly�and do not in any way limit
or amplify the terms and provisions hereof.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease as of the day and year first above written.
77 ro
CITY OF NEWPORT BEACH
a municipal corporation
By:
0 0 lj�
19. ... " Mayoi�
Ix -
APPROVED AS TO FORM: -14W-w,
Cit�, Attorney.
ATTEST:
By:_,
City Clerk
NEWPORT HARBOR POSTNO. 291 OF THE
AMERICAN LEGION
a California corporation
1--p
By 44m2nr I -I- � -- -
1?7r^esident
By:
Secretary
-12-
A parcel of land situated in the City of Newport
Beach, California, being a portion of Lot 4, Section 33,
Township 6 South, Range 10 West, S.B.B. & M., a portion of
Lot 4, Section 341' Township 6 South, Range 10 West, S.B.B.
& M., and certain filled tidelands described as follows,
to wit:
Beginning at a point in the northerly prolongation
of the Westerly line of 15th Street, as said 15th Street is
laid out and shown upon a map of Tract No. 234, recorded in
Book 13, pages 36 and 37, Miscellaneous Maps, Records of
Orange County, California, said point of beginning being
160 feet northerly from the northeasterly corner of Lot 4,
Block 115 of said Tract No. 234; running thence North 9* 43'
30" East along the Northerly prolongation of the Westerly
Line of said 15th Street, a distance of 109.79 feet to an
intersection with the United States Government Bulkhead line
between Station No. 118 and Statiori No. 119, as said bulkhead
line is shown upon a map entitled "Harbor Lines -Newport Bay,
Newport Harbor, California", approved May 2nd, 1936, by the
Secretary of War and on file in the office of the U. S.
District Engineer, 751 South Figueroa Street, Los Angeles,
California; thence westerly along said bulkhead line a distance
of 349.9 feet to an intersection with the northerly prolonga-
tion of the easterly line of Lot 13, Block 115 of said Tract
No. 234; thence south 9* 431 30" West along the said northerly
prolongation of the Easterly line of Lot 13, a distance of
249.79 feet to an intersection with a line 20 feet northerly
of and parallel with the northerly line of said Block 115;
thence south 801 161 30" East along the said line 20 feet
northerly of and parallel with the northerly line of Block 115,
a distance of 203.9 feet; thence North 91 431 30" East a
distance of 140 fee ' t; thence south 801 16130" East, a distance
of 146 feet to the point of beginning.
RESERVING for street purposes a strip of land 50
feet in width, lying 25 feet on each side of the following
described center line:
I Beginning at a point ' in thenortherly prolongation of
the easterly line of LoL 13, Block 115, as shown on a map of
Tract No. 234, recorded in Book 13, pages 36 and 37, Miscellaneous
Maps, Records of Orange County, California, -said point of begin-
ning being 135 feet northerly of the-nort.heasterly corner of
said Lot 13; running thence south 80* 16' 30"'East-along a line
parallel to the northerly line of said Block 115, a distance of
203.9 feet to a point which is 146 feet westerly of the westerly
line of 15th Street.
13XHIBIT "A"
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER,
February 24, 1975
STUDY SESSION No. 6
TO: MAYOR AND CITY,COUNCIL
FROM: American Legion Lease Committee
SUBJECT: AMERICAN LEGION POST NO. 291 LEASE
HISTORY:
The history of the American Legion Lease goes back to September
8, 1924, when.the original lease between the City and the American Legion
Post 291 was signed. This lease, for a period of twenty-five years, made a
parcel of property available to the Legion located at 10th Streetand East
Bay. On the same date as this lease, the City deeded a parcel of property
to the Legion which was located between the property covered by the lease
and another parcel of property which the Legion owned,in fee. Following
this original lease, According to the records in the City Manager's and
Clerk's office,,six additional transactions between the City and American
Legion have been approved by Councils. A summary of these transactions are
listed as follows -
1. Resolution No. 638, November 3, 1930
The City Council adopted Resolution No. 638 which provided in sub-
stance that the City desired to extend Bay Avenue across the property
leased to the Legion. Subsequently, the Legion agreed to allow the -
City to extend Bay Avenue through said property and reserve.its use
for street purposes. The Legion released its leasehold interest to
allow development of the street and paid $1,500 for the fee interest
from the City in the property northerly of Bay Avenue.
Page -2-
2. Lease dated:April 20, 1936
The City leased tidelands fronting on the Bay easterly of 10th
Street for a term of 25 years to the Legion.
3. Lease dated September 2, 1940
The lease of April 20, 1936, was cancelled by mutual agreement of,
both parties and a new lease was executed for the present American
Legion property at 15th Street and Bay Avenue for a term of 25 years
ending on August 31, 1965. The lease did not provide for any money
,to be paid as rent, but stated that as consideration to the City the
Legion would construct.a building on the property to be used for
civic, educational and recreational purposes.
4. Lease dated February 26, 1951
The principal change accomplished by this lease was to extend the
termination date of the lease for 11 years to January 31, 1976. It
also included a new provision requiring the Legion to provide public
liability insurance at its expense and to reimburse the City for fire
insurance premiums. Rental was set at $1.00 per year.
5. Agreement for construction of boat slips dated February 24, 1958,
between the City, the American Legion Post, and Trautwein Bros.
The principal terms and provisions of this agreement are as follows:
a. Trautwein Brothers agreed to construct slips, docks and ramps
in accordance with an approved drawing.
b. The Legion agreed to pay Trautwein $35,000 with interest at
the rate of 8% per year in monthly installments.
c. The residents of the City's Marinapark have the right of first
,refusal with respect to renting the boat spaces (both dry and wet
storage) for a period of one day on all vacancies.
Page -3-
d. Upon payment by the Legion of its entire obligation to Traut-
wein, the City shall receive IOT of the gross monthly revenue.
6. Agreement dated November 13, 1961, between the City, the Legion,
and Trautwein Brothers.
The principal terms and provisions of this agreement are as follows:
.a. The improvements�to be constructed by Trautwein had been com-
pleted.
b. Additional improvements had been constructed by Trautwein cover-
ing items not included wi,thin the original improvement agreement.
c. Beginning July 1, 1968, 10% of the gross revenue and income from
the improvements will be paid to the City as rent for the entire
premises leased to the Legion.
d. All other revenues derived from the improvements may be used by
the Legion as it sees fit.
The preceding agreement is the last formal transaction relating to
the property currently under lease to the Legion. Attached as Exhibit "A",
is a Fact Sheet, outlining general information,lease provisions, and agree-
ment provisions for the lease dated February 26, 1951. This lease and the
last agreement dated November 13, 1961 expire January 31, 1976. There are
no provisions within either the current lease or the associated agreement for
automatic renewal.
The American Legion, in a letter to the City Council dated December
4, 1973, has,now petitioned the City for a twenty-five year'exten,sion of the
present lease. This letter is attached as Exhibit "B". As a result of this
letter, the City Council formed an ad hoc c-ommittee compri.sed of Mayor Pro
Tem Dostal, Councilman Barrett, and the City Manager to review the existing
lease and make specific recommendations to the City Council concerning the
future of this property.
Page -4-
DISCUSSION AND CONCLUSION:
The Committee has met on a number of 'Occasions and reviewed three
basic alternatives as follows:
1. Permit the lease to expire and operate the marina and parking
lot with municipal employees.
2. Renew the lease for 25 years requiring greater gross payments
to the City and greater use of the facility by the public.
3. Combination of 1 and 2 Above, with the Legion lease being re-
newed for the building area only.
Attachment "C" gives a financial comparison between Alternate 1 and
2 above. This Attachment indicates that the City could'receive an,estimated
$31,200 per year if it became a City operation, or $31,450 if the new lease
is consumated. The Committee, after considerable study, rejected Alternate
No. 1 for the following reasons:
1. It would require additional City employees at a time when
the City is attempting to minimize municipal expenses.
2. The City could receive a higher estimated annual return by
utilizing another alternate.
3. Historically, the American Legion has occupied and managed this
site.
Alternate No. 2 is being recommended by the Committee subject to the
following conditions:
1. That the new contract will stipulate that public groups will
have the right to use the building and facilities at a rental
fee acceptable to the City and the Legion.
2. That the Acquatic' Center, long sought by the Parks, Beaches &
Recreation Commission, be located in the area vacated by the
Page -5-
Lawn Bowling Association with Legion facilities such as the
launching hoist available for placement of boats into the water.
3. That the dry boat storage area be increased to accommodate the
boating public, if necessary, and required permits are obtained.
4— That the payments be increased as follows:
(a) Marina slips from 10% to 40% of gross.
(b) Dry boat storage and lockers from zero to 50% of gross.
(c) Parking from zero to 100%.
(d) Building rental from zero to $300/mo.
5. That if additional boat slips are required, the Legion will finance
their construction with revenues from rents being used to retire
the debt, after which the gross will be divided with City receiving
40%.
6. that if additional dry boat storage and locker facilities are re-
quired, the Legion will finance the construction with revenues
from rents being used to retire the debt, after which the gross
will be divided with City receiving 50%.
'7. That the parking lot be a controlled parking lot by using abumper
sticker system with the bumper stickers costing $60.00/yr. and pro-
rated for each quarter. The American Legion shall purchase a minimum
of 26 parking spaces.
8. That 36 parking stalls be made available for use at no cost by
those renting a boat slip.
,The Committee reviewed extensively the authority that the City has to
lease the premises to the American Legion. It was determined that the City
has the power to leas�! the subject lands pursuant to the general authoriza-
tionprovided to cities by Government Code Section 37385 and Civil Code
Page -6-
Section 718. Section 37885 of the Government Code, which is similar to
Civil Code Section 718, provides:
"A City may lease tide and submerged lands, the
wharves, docks, piers, and other structures or
improvements on these lands, and as much of the
uplands abutting upon them as the legislative
body deems necessary for the proper development
and use of its waterfront and harbor facilities
As to that portion of the leased lands which consists of tide and
submerged lands, the City has been specifically authorized to lease them pur-
suant to the 1919 Statutory Grant which provides that the City may lease all
"tidelands and submerged lands,within the present boundaries of said City,
and situated below the line of mean high tide of the Pacific, Ocean . . .
for a period not exceed 25 years
With respect to limitations on the power of the City to lease lands,
Section 1402 of the Charter of the City of Newport Beach provides that the
City shall not lease "any waterfront or'beach property" until the leasing
of such lands have been approved by a majority of the electors voting on
such proposition at any general or special municipal election. However, this
restriction by the terms of said section does not apply to "the future leasing
or releasing of such property under lease at the effective date of this Charter."
The Charter became effective in 1955 and the property covered by the lease
renewal was under lease pursuant to the 1940 lease on the effective date of
the Charter. Accordingly, said restriction is not applicable.
Page -7-
Pursuant to Section 21151 of the Public Resources Code "all local
agencies shall prepare or cause to be prepared . . . an Environmental Impact
Report on any project they intend to carry out or approve which may have a
significant effect on the environment." Public Resources Code Section 21065
defines "project" for purposes of the Environmental Quality Act to mean acti-
vities involving the issuance of a lease. The American Legion lease renewal
is, therefore, subject to the requirements of the Environmental Quality Act.
To satisfy the requirements of the Act, the City Council may consider pre-
paring a Negati've Declaration in accordance with Title 14, Section 15083 of
the California Administrative Code. This section provides that an Environ-
mental Impact statement is not required if the City Council finds that a
project will not have a significant effect on the environment. If the City
Council so finds, a Negative Declaration would be an appropriate procedure
to follow in satisfying the requirements,of the Environmental Quality Act.
It is the Committee's opinion that Alternate No. 2 (Rel - 'e)
eas
would provide the maximum benefit for the public and the greatest return to
the City of Newport Beach. Attached, members of the City Council will' find
a plot map showing the proposed lease area and the area to be utilized as
an Acquatic Center.
If the City Council concurs with the recommendation made herein,.the
following action should be taken.
1. The City Attorney should be directed to prepare the lease
document for formal presentation to the City Council and the
American1egion.
2. The Parks, Beaches & Recreation Commission should be directed
to prepare conceptual plans for an Acquatic Center adjacent to
the leased premises.
Page -8-
3,. The City Manager should be directed to prepare and process
a Negative Declaration for the subject lease.
The Committee looks forward to discussing this report with the City
Council
LEASE COMMITTEE
MAYOR PRO TEM MILAN DOSTAL
COUNCILMAN PETER BARRETT
CITY MANAGER ROBERT WYNN
Attachments:
.EXHIBIT "A" - General Information (Yellow)
EXHIBIT "B" - Letter from American Legion (White)
EXHIBI T "C" - Cost Effective Comparison Study (Blue)
Plot Plan
purposes.
Rental $1.00 per year, plus t he amount of the
fire insurance premiums paid by the
City on the buildings located on the
demised premises,
Maintenance and Repairs Lessee to keep the buildings in good
condition and repair and to keep the
grounds surrounding the buildings in a
good condition, free from weeds, rubbish,
papers,' etc.
Assign4bility No assignment of lease or subletting of
premises, and no mortgaging of the lease-
hold interest or any of the improvements,
without written consent of Lessor.
Termination Holding over of premises after end,of
lease term, with express consent of
Lessor, to be�construed as month-to-
month tenancy at $100.00 per month rental
and upon all other conditions of original
lease. At the end of the term thereof,
the American Legion agrees to yield up
immediate possession of said premises
together with all buildings and improve-
ments.
*See Additional Agreement Provisions Page Two
CITY OF
NEWPORT BEACH
EXHIBIT "All
GENERAL INFORMATION
7_
Parties to Lease,
City of Newport Beach, Lessor
Newport,Harbor Post No. 291 of
The American Legion, Lessee
Date of Current Lease
February 26, 1951
Current Lease Duration
Twenty-five years
City Council A�!provals
Original Lease: September 8, 1924
(Chronological)
Resolution No. 638: November 3, 1930
Amended Lease: April 20, 1936
New Lease: September 2, 1940
Agreement: February 24, 1958
Agreement: November 13, 1961
NOTE:
See attached Historical Summary dated
February 9, 1968 (prepared by City
Attorney, Tully Seymour)
Current Land Location
15th -Street and West Bay
Approximate Area
1.54 acres
Frontage
Water Street
349.901 109.791
Reserved Area 10.195 square feet,
50 foot Street, Reservation 203.9 feet
long
Source of City's Title
Tidelands and Uplands
LEASE PROVISIONS
Purpose
Recreational, educational and civic
purposes.
Rental $1.00 per year, plus t he amount of the
fire insurance premiums paid by the
City on the buildings located on the
demised premises,
Maintenance and Repairs Lessee to keep the buildings in good
condition and repair and to keep the
grounds surrounding the buildings in a
good condition, free from weeds, rubbish,
papers,' etc.
Assign4bility No assignment of lease or subletting of
premises, and no mortgaging of the lease-
hold interest or any of the improvements,
without written consent of Lessor.
Termination Holding over of premises after end,of
lease term, with express consent of
Lessor, to be�construed as month-to-
month tenancy at $100.00 per month rental
and upon all other conditions of original
lease. At the end of the term thereof,
the American Legion agrees to yield up
immediate possession of said premises
together with all buildings and improve-
ments.
*See Additional Agreement Provisions Page Two
Page Two
Terms of Default
Upon default in any,condition of the
Lease by Lessee continuing for 60 days
after written notice to Lessee, Lessor
may declare term ended and re-enter
premises. Lessee waives compensation
for forfeiture and demand for possession.
Taxes
Lessee to pay all taxes levied upon
leasehold interest, and all water rates,
meter charges and other charges imposed
upon demised premises before deliquency.
Insurance
Lessor to maintain adequate fire insurance�
on improvements, and Lessee to maintain
public liability insurance with minimum
liability of $100,000-$300,000.
III. AGREEMENT PROVISIONS
For construction of boat slips between
(February 24, 1 1958)
the City, American Legion and Trautwein
Brothers.
Rental
Beginning July 1, 1968, 10% of the gross
monthly revenue from the marina docks
paid to the City.
Termination
At termination of Agreement (January 31,
1976) or lease expiration, the Legion
shall surrender possession to the City
all docks, slips, ramps and capitol
improvements.
EXHIBIT "B"
kip
215 15th Street
Newport Boach, Collfo(illo
673-5070
December 4, 12? CO
r
City of.Newport Beach
3300 Newport Boulevard
Newport Beach, Calif. 92660
Subject: American Legion Lease
Gentlemen of the City Council:
Post 291 American Legion holds a lease on a parcel of rand located at 15th Street
and Newport Bay. This land is largely State of California Tidelands held in trust
by the City of Newport, Beach, and a smaller part of the leased land is! owned in
fee by the City of Newport Beach.
The American Legion moved from 10th Street to 15th Street in September 1940 as
part of an agreement with the City of Newport Beach to construct Bay Avenue from
9th Street to 15th Street parallel to Newport Bay and ending at 15th Street. Bay
Avenue was constructed, cuttin*or The American Legion property in half at 10th St.
CR
The American Legion owned approximately 5 lots at 10th Street easterly approxi-
mately 250 feet. From Bay Avenue north to the Bay of NeWport was leased frorn
the City of Newport Beach.. Cutting Bay Avenue through to( 15th Street opened up
the El Bayo Tract and The American Legion and the City oJL Z4ewport Beach cancel-
led the lease at 10th Street and a new leas eL was granted The American Legion at
Fifteenth Street for Z5 years on September 2, 1940.
The American Legion built a hall for meetings and civic functions in 1949. In 1958,
The American Legion. 'constructed a public marina, which is the prime purpose of
the Tidelands Act. The agreement was to allow residents of the City owned Ma I rina
Park first refusal on leasing boat slips at the Legion marina.
The hall, parking lot, marina I and boat hdist were constructed and paid for by The
American Legion. The City of Newport Beach receives 1076 of the gross from the
marina. The County of Orange receives $6000. 00 per year in taxes,
J
ln�
7 - 215 151h Stroot
Newport Beach, California
673-5070
The Legion hall is 24 years old. The marina is 12-15 years old. The American
Legion has plans to remodel the hall and grounds.
The American Legion facility is used by many public and civic groups. The
American Legion wishes to continue serving the community in cooperation
with the City of Newport Beach in the future as we have in the past.
At this time The American Legion Post 291, Inc. of Newport Beach respectlully
reque sts a Z5 year extention oi the pre s ent leas e that will -expire in 'january
of 1976.
DRD: sw
Y#
The Board of Directors of the
American Legion, Newport Harbor Post 291, Inc.
Donald R. Donaldson
President of the Board
V
DRD: sw
Y#
The Board of Directors of the
American Legion, Newport Harbor Post 291, Inc.
Donald R. Donaldson
President of the Board
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:21
REPORT ON
RECOMMENDED TIDELAND BOUNDARY
FOR PROPERTY IN LOWER NEWPORT BAY
LOCATED ALONG THE BALBOA PENINSULA
BETWEEN 15TH AND 18TH STREETS
NEWPORT BEACH, CALIFORNIA
PREPARED FOR THE
CITY OF NEWPORT BEACH
JUNE, 1996
SUBMITTED BY
BOUNDARIES UNLIMITED
6840 PINE CONE RD.
LOONUS, CA 95650
(916) 652-5167
TABLE OF CONTENTS
SUBJECT PROPERTY ................................................ 1
PURPOSE......................................................... 1
RESULT.......................................................... I
METHOD.......................................................... I
PROPERTY OWNERSHIP .............................................. 2
LIMITATIONS OF REPORT ........................................... 3
DEFINITION OF TIDELAND BOUNDARY .................................. 3
CONFORMITY WITH NEARBY TIDELAND BOUNDARY DETERMINATIONS ......... 4
ELEVATION OF MEAN HIGH WATER .................................... 4
BIOLOGICAL TIDELAND DETERMINATIONS .............................. 7
EARLY UPLAND PROPERTY SURVEYS ................................... 8
EARLY TOPOGRAPHIC SURVEYS ....................................... 9
FINLEY MEANDER SURVEY .......................................... 12
OTHER SURVEYS .................................................. 13
ACCURACY OF EARLY SURVEYS ...................................... 14
ARTIFICIAL CHANGES TO SHORELINE ................................ 14
STATE LEASES OF ADJACENT TIDELAND PROPERTY ..................... 15
ANALYSIS AND RECOMMENDATION .................................... 16
LOCATION OF THE RECOMMENDED TIDELAND BOUNDARY .................. 16
APPENDICES
1. Recommended Tideland Boundary
2. Historic Shoreline Positions
3. Portion of 1875 Topographic Survey
4. 1889 Finley Survey, U.S. General Land Office
5. 1905 Section B Subdivision
6. Portion of 1912 Corps of Engineers Survey
7. Portion of c. 1920's Hillyard-Browning Survey
8. Official Map No. 108 Showing Finley Meander Line Position
I
RECOMMENDED TIDELAND BOUNDARY
FOR
CERTAIN CITY -OWNED PROPERTY LOCATED IN
THE CITY OF NEWPORT BEACH
NEWPORT BAY, CALIFORNIA
SUBJECT PROPERTY
This report deals with the tideland property boundary along
the bayward side of the Balboa Peninsula between 15th street and
18th street in Newport Beach.
PURPOSE
The purpose of this report is to recommend a location of the
tideland boundary in keeping with accepted boundary determination
practice. This recommendation will be based upon an analysis of
historical surveys, maps, photographs, deeds, and other records.
No field survey was conducted for this study.
RESULT
This report recommends the 1889 U.S. General Land Office
meander line by S.H. Finley as the tideland boundary for the
subject property. The location of the line is shown in Appendix 1.
METHOD
Historical information shows that the natural bay was filled
at the subject location, probably during the late teens or early
1920's. As a result of the filling, the shoreline was moved some
200 to 250 feet further bayward. This report will attempt to
determine where the line of mean high water was located on the
ground just before the time of the filling.
PROPERTY OWNERSHIP
The city acquired title to most of the adjacent upland
property, together with other off-site lands, by deed dated August
12, 1919, from the Pacific Electric Land Company. The deed is
recorded in Book 342 of Deeds, page 329, Records of Orange County.
The part of the Pacific Electric deed treating this property
describes it as unsubdivided land bounded o n the north by the part
of the U.S. Government Meander Line included between Station 68 and
Station 72, as surveyed by S.H. Finley, on the east by the west
line of 15th street, on the south by the subdivision known as
Section B, and on the west by the east line of 19th street.
Without evidence to the contrary, this report treats the deed
reference to the Government Meander Line for the north boundary as
carrying title to the ordinary high water mark of Newport Bay.
The city gained title to the remainder of the adjacent upland
property by deed dated April 24, 1956 from the Pacific Electric
Land Company. This was a conveyance of certain lots in Blocks 115,
116, and 117 in the Section B subdivision. Additional nearby lots
in Block 115 were also deeded to the city the same day by the
Pacific Electric Railway Company.
The abutting tidelands and submerged lands of Newport Bay came
to state ownership upon California's admission to the Union in
1850. Tidelands and submerged lands of the bay that fronted on
lands owned or later acquired by the city were granted in trust by
the State Legislature to the City of Newport Beach in 1919. This
was pursuant to Chapter 494, Statutes of 1919, in effect July 25,
1919. On that date, the upland property at this location was not
yet owned by the city, therefore title to the abutting tidelands
and submerged lands did not transfer immediately. Title to most of
the frontage passed to the city a month later when the city was
deeded the land by the Pacific Electric Land Company. The
remaining tidelands and submerged landsF involving frontage on two
upland lots, passed when the 1919 legislative grant was amended by
2
subsequent legislation, Chapter 70, Statutes of 1927. The city now
administers the tidelands and submerged lands in trust pursuant to
Chapter 74, Statutes of 1978.
LIMITATIONS OF REPORT
This report is based upon information taken from historic
surveys, records, and maps prepared by federal, state, and local
agencies. Unless otherwise noted, it assumes the information shown
on these records is accurate.
The necessary research materials were obtained from both
current and prior searches of the files of the City of Newport
Beach, County of Orange, California State Lands Commission, and
records of this firm. Some of the data was previously assembled
for earlier Newport Bay tideland boundary studies, and for
litigation involving Upper Newport Bay. I
Upland property titles for this report were researched only to
the extent of requesting ownership information from the city. No
independent investigation was conducted on the subject, and the
report does not advance any opinions of upland property ownership.
Comments appearing in the report merely reflect information
furnished by the city.
Within the city, Mr. Paul Medina provided valuable aid in
furnishing copies of maps, deeds, and other records. Mr. Paul
Cuomo, a former supervisory employee with the County of Orange,
assisted in the research of historical survey records.
DEFINITION OF TIDELAND -BOUNDARY
The tideland boundary in Newport Bay is the ordinary high
water mark as set forth in Section 830 of the California Civil
Code. The ordinary high water mark in a tidal estuary under
natural conditions corresponds to the intersection on the ground of
the tidal height of mean high water. That height is determined by
averaging the twice-daily high tides over a full tidal cycle of 19
years. When the available measurements of tide heights do not
extend over the full 19 year cycle, the short-term result is
3
reduced, or extrapolated, to the 19 -year mean value. This is done
from a comparison with simultaneous tide observations made at a
tide station that does have a full 19 years of�measurement.
In instances where the position of the line of mean high water
has changed gradually over time due to the natural action of water,
the boundary moves with the changing location of that feature. The
tideland boundary moves with these changes as long as they are
natural, gradual and imperceptible. When the changes are sudden or
avulsive, or result from dredging or filling, or from accretions to
land caused by nearby artificial means, the boundary does not
continue to follow the day-to-day line of mean high water.
CONFORMITY WITH NEARBY TIDELAND BOUNDARY DETERMINATIONS
Tideland boundary determinations involving both court action
and state legislation have be made to neighboring property located
both to the east and west of the subj ect property. To the west the
boundary was adjudicated in SCC #23682. To the east the boundary
was adjudicated in SCC #23681. The ordinary high tide lines
adopted in these two cases were later further established by an act
of the state Legislature, Statutes of 1929, Chapter 142. The lines
determined by those actions do not comport with the tideland
boundary location.recommended in this report. The reason for the
disparity is that the prior determinations were not done according
to the same property boundary guidelines that were used in this
report.
ELEVATION OF MAN HIGH WATER
The correct 19 -year average tide height of mean high water for
property boundary purposes is somewhat uncertain in Newport Bay.
Changes in the tide elevations have occurred artificially as a
result of harbor improvements such as dredging and filling
operations, and stabilizing the entrance channel. Measured mean
high water elevations in a nearby area of the bay range from
historic government figures as low as 4.0 feet to a recent value of
4.6 feet above the level of mean lower low water. The elevations
are measured above the lower low water reference level, sometimes
called mean lower low water datum. This reference is the same as
4
that used in published tide tables. Thus if the height of mean
high water is determined to be 4.4 feet for boundary purposes, the
line of mean high water could be directly seen on the ground during
still water conditions. by noting the edge of the water's surface at
the time of a 4.4 feet tide.
Tide height measurements taken after the harbor was built
found mean high water to be at 4.5 feet beginning in the 1920's.
The most recent known value is 4.6 feet. The correct elevation for
historic boundary purposes, however, is the elevation determined
under natural conditions before the harbor improvements. The
National Ocean Survey publishes a value of 4.4 feet above mean
lower low water at Newport Landing for this historic elevation.
The figure is based upon readings made in 1875, 1887 and 1889.
Newport Landing is located near the highway bridge separating the
upper and lower. portions of Newport Bay. It is the nearest
historic tide station to the property.
While 4.4 feet is the official government height for mean high
water, that value is not without some question. In reviewing the
historical records of the National Ocean Survey, it was found that
4.0 feet was the actual mean height as determined from the 19th
century tide measurements. The Chief of the Tidal Datums Quality
Assurance Sectionwrote in 1991 that the historic Newport Landing
values were altered to be consistent with other nearby locations.
This was to avoid the appearance of an anomaly. The disturbing
element in this alteration is that the historic hydrographic
conditions in Newport Bay may have been quite different from those
in other nearby locations and a true anomaly may have existed.
This would result in the 4.0 feet figure being a better value for
boundary purposes than 4.4 feet.
One possibility that could lead to an anomalous situation is
that Newport Bay could have different entrance conditions than
other nearby estuaries. In support of the possibility that an
anomaly existed, an early government letter by a person familiar
with such matters mentions the unstable nature of the Newport
entrance channel.
- - The lumber merchant of the place informed me that he had
�11
recently been to San Francisco to secure a steamer to run to
Newport Landing but although they would dispatch her that no
insurance could be obtained until the place or rather the
entrance was surveyed by the Coast Survey. A small schooner
with a cargo of 50 [?] lumber entered the bay a few days
since and reports 15 feet of water in the channel.
The entrances to these small estuaries and bays are
constantly changing so that I do not suppose that any survey
can do more than give the general depth of water on the bar.
It will be entirely accurate at time of survey and be
inaccurate six hours later owing to changes. The approaches
and inside r ork though will be always available for the use
of vessels.
On the other hand, the tide experts of the U. S. Coast &
Geodetic Survey analyzed the available data and arrived at the 4.
feet figure. While questions are raised here, it is beyond tDhe
1
scope of this investigation to modify the government's established
tide values.
Information from an early non-government source was also
reviewed for information on tide heights. Several tide
measurements were made at 3 different locations in Newport Bay
during 1920 and 1921 by the office of Leeds and Barnard, Consulting
Engineers. These measurements were done in conjunction with the
project for harbor development. The value for mean high water at
the county bridge at the west end of the turning basin was 4.24
feet, at the Palisades Pier was 4.30 feet, and at the Balboa
Pavilion was 4.24 feet. These figures were not used in this report
for boundary purposes because some were measured after changes were
made to the entrance channel. Also, there was no statement that
the determinations were reduced to mean values (extrapolated to a
19 year period). If it was certain that the Leeds and Barnard
figures had been reduced to mean values, they would have been
further considered for use by this report.
One other tide height factor arises because of a note
appearing on the 1912 U.S. War Department survey of Newport Bay.
In this note is a statement that the elevation of high water mark
I Letter from A.W. Chase to C.P. Patterson, February 27,
1875, U.S. Coast & Geodetic Survey, Superintendent's "7ile, 1866-
1910, Assistants, C, 1866-1875, RG 23, National Archives.
6
is constant between Promontory Point and the bridge at the Arches,
although the plane of lower low water is inclined upward from
Promontory Point to the bridge at the Arches by 0.9 foot. High
water mark was def ined in the note as the physical mark left by the
preceding spring tide. Because we are here concerned with high
water heights rather than low water heights, the ef f ect of this low
water difference could be substantially reduced. Also, it is not
known if the relationship between the high and low water planes is
linear. It was also noted that the area of the bay described in
the note could involve differing hydrologic factors than the
subject property. Because of the uncertainty of how to apply the
information shown on the War Department map, no attempt was made to
adjust the values that were determined for boundary purposes.
The elevation of 4.4 feet is used in this report for boundary
determination purposes because it is the official historic
government figure for Newport Bay. It also has been previously
accepted by the County of Orange in its efforts at tideland
boundary determination.2 If either the government's original 4.0
feet, or the 4.24 to 4.30 feet Leeds and Barnard figures had been
used, the tideland boundary would be located somewhat waterward of
the 4.4 feet height.
BIOLOGICAL TIDELAND DETERMINATIONS
Salt marsh vegetation was historically located along the
margin of the bay at this location. One factor that some
investigators rely upon in locating the line of mean high water is
that it supposedly coincides with the waterward margin of the
marsh. Research done previously by this writer in this and other
nearby areas shows that the principal marsh grasses are pickleweed
(Salicornia) and cord grass (Spartina). Pickleweed typically grows
at slightly higher elevations than does cord grass. The upper
elevation of the pickleweed is usually a foot or two above the
elevation of mean high water. The lower elevation of that plant is
usually at or slightly below the elevation of mean high water.
Cord grass is usually found at elevations ranging from mean high
2 Board of Supervisors action authorizing a 4.,: survey of
Newport Bay, May 12, 1925.
7
water to a foot or two below that height. Typically in an
established marsh such as this the band of pickleweed is much wider
than that of cord grass. Thus the intersection of the line of mean
high water along the shore of the bay is usually somewhat landward
of the outer or lower limit of the marsh. For this reason,
topographic maps that show the edge of marsh vegetation without
supporting evidence of the line of mean high water are not accurate
indicators for determining the tideland boundary.
EARLY UPLAND PROPERTY SURVEYS
U.S. General Land Office 1889
The United States became the owner of the upland property
following the war with Mexico and the 1848 Treaty of Guadalupe
Hidalgo. In 1889, the U.S. General Land Office contracted with
Solomon H. Finley to survey the swamp and overflowed within Newport
Bay.
Finley's original survey included lands that were determined
not to be in government ownership, so changes in his results were
ordered. An official government plat was approved in 1890 that,
among other things, subdivided the peninsula at the location of
this investigation. The adjacent upland property is located within
Lot 4, Section 33,.and Lot 4, Section 34, T. 6 S., R. 10 W., S.B.M.
The swamp and overflowed lands within Newport Bay were bounded
by irregular lines called meanders. Details of how Finley surveyed
the meander lines are given later in this report.
Section B Subdivision Plat, 1905
This plat represents a subdivision of a parcel of upland
property made by the Newport Beach Company. The map of the
subdivision was made by S.H. Finley, the same surveyor who did the
government meander survey 16 years earlier.
The plat shows a heavy freehand shoreline fronting on Newport
Bay, and lighter water lines to the north. The shoreline is not
identified as to what it specifically represents. It is considered
unlikely that it was run as a contour of 4.4 feet elevation.
8
The Orange County Engineers Office has the original field book
collection of S.H. Finley. The field books were researched to
determine if they contained additional information on the heavy
freehand line, or on the location of the line of mean high water at
the time the subdivision survey was made. Unfortunately no
clarifying information was found. Without some indication of what
the freehand line represents, how it was determined, and whether
the conditions under which it was made represent natural shoreline
conditions, the S.H. Finley -freehand drawn line was determined
unacceptable for recommendation as a tideland boundary by this
report.
EARLY TOPOGRAPHIC SURVEYS
U.S. Coast & Geodetic Survey, 1875
The first detailed topographic survey of Newport Bay was made
by the U.S. Coast and Geodetic Survey in 1875. This work was part
of a comprehensive survey and was one of the elements needed in
preparing a navigation chart of the bay. The 1875. survey is
recognized as the first accurate topographic representation of
Newport Bay. Unfortunately, there are not enough land elevations
shown for locating the line of mean high water. The survey does
show certain visible features, including the upper and lower limits
of the salt marsh ' vegetation. While some investigators consider
the solid black line located at the outer limit of the marsh
vegetation as the line of mean high water, that is generally not
the case. Any congruency between the two is coincidental.
The bayward limit of the marsh shown on the 1875 topographic
map intrudes well into the Section B subdivision of 1905 between
16th St. and 18th St. Since the marsh line is most usually located
waterward of the line of mean high water, it is probable that
between those two streets the tideland boundary in 1875 was also
located within an area that in 1905 became the Section B
subdivision. As the line proceeds easterly of 16th St., it swings
waterward of the Section B limit.
This survey was used for background information as to the
earliest approximate location of the tideland boundary. It did not
play an important role in recommending the location of the tideland
boundary. Also, no independent evidence supports the outer marsh
line to be the line of mean high water.
Corps of Engineers 1912
The next important topographic survey was done by D.E. Hughes
for the U.S. Army Corps of Engineers in 1912, and is depicted on
Orange County surveyors map no. 6883. Another version of the same
survey with harbor lines added is identified as county surveyors
map no. 6885. Unfortunately, no line of mean high water at
elevation 4.4 feet above mean lower low water was surveyed. A 5
feet contour line appears on the map, but that line is at too high
an elevation to be useful for boundary purposes. Spot ground
elevations are shown on transects spaced 450 feet apart that
correspond with the extensions of the upland streets. Using these
spot elevations with the line of 5 feet elevation, an approximate
location for the 4.4 feet contour can be determined by
interpolation. Use of this procedure requires that the ground
surface be at a constant slope between the various elevation
points, a condition that may not actually exist. The spot
elevations were taken at spacings of 150 to 250 feet apart along
the individual transects. These spacings are too great for
accurate work. Also, all of the spot elevation points are located
on tide flats bayward of the marsh while the 5 feet line is back in
the marsh. Experience has shown that berms or ridges oftentimes
exist at the bayward edge of the marsh, and also within the marsh
itself. Thus the ground between the spot elevations and the 5 feet
line may not lie along a constant slope.
The 450 feet transect spacing of the spot elevations is also
less than adequate to define the sinuosities of the line. An
additional problem with the map is it's relatively small scale of
111 = 833 feet, which makes the approximate mean high water line
subject to even more error.
One other feature of the Corps 1912 survey data raises further
doubt about its reliability. Both the high water mark and the spot
elevations that are so important to this tide line determination
differ in some respects between the two different verEions of the
Corps' map even though they are both based upon the same field
10
-survey. For all of these reasons the correctness of the 4.4 feet
contour line as determined f rom. the 1912 Corps map is considered
suspect.
W.K. Hillyard - C.R. Browning 1920's
Orange County Surveyor, W.K. Hillyard, and the Irvine Company
surveyor, C.R. Browning, appear to have both conducted surveys in
Newport Bay during the 1920's for locating the tideland boundary
line. Existing in the county records are three plats identified by
Orange County surveyors map file numbers 6881, 6892, and 6909.
Another unnumbered version was obtained some years ago from the
Irvine Company files. These plats are believed to be slightly
different depictions resulting from the same field survey, and all
appear to have certain information superimposed upon the same base
map- There is no clear identification of who performed the
original work, and it is possible that both Hillyard and Browning
contributed to the information shown. This report will refer to
this work as the Hillyard - Browning survey even though no evidence
proves that deduction.
The topographic information shown on the maps corresponds to
efforts made in the 1920's to locate the tideland boundary in the
county areas and in a few city areas of,Newport Bay. It is evident
there was some uncertainty in knowing the correct elevation of the
boundary line as on two of the plats many spot elevations were
measured as well as contours of 4.4 feet, 4.6 feet, and 5.1 feet.
Difficulty is met in determining the dates of the field work.
For the most part the shoreline features correspond to those
expected immediately prior to the dredging of the harbor during the
early 1920's. The dates that are customarily used for the Hillyard
and Browning tideland boundary surveys are mid -1920's, or after the
dredging was well underway. This report considers the actual field
measurements to have been made immediately prior to the county
dredging because that is the situation shown on the maps.
In the subject area of this report the only mapping symbol
shown on the plat that is representative of a shoreline feature is
a single freehand -drawn line. It is not identified on the map as
to elevation, or in fact as to what it purports to represent. Its
position closely corresponds to the heavyweight freehand line shown
on the 1905 Section B subdivision map. The freehand line on the
county map only appears westerly from 16th street and does not
extend easterly to 15th street.
The Hillyard-Browning freehand line is located well landward
of the bulkhead line, which suggests it might reflect the shoreline
position prior to final dredging and filling operations. Further
to the northwest in the channel area known as The Rhine, the
freehand line configuration shows a straight channel with parallel
sides that appears to reflect a post -dredging condition. A. similar
condition appears at another channel labeled The Hudson. The line
in all these general areas seems to have been done during the time
the dredging was in progress, with some areas already dredged and
filled and others not. The problem is that the freehand line
appears in locations that are not otherwise known to have ever been
shorelines of the bay. It is possible that the lines may reflect
planned shorelines or lines taken from other maps. Even if the
line was known to be a 4.4 feet contour, without other evidence it
could not be completely relied upon to reflect natural conditions
of the shoreline prior to placement of artificial fill.
At first glance, the freehand lines shown on the Hillyard-
Browning maps appear to be of significant potential value to this
report. Research was therefore conducted in both county and
private records to locate additional data on the survey that formed
the basis of the line. Extant field books of both Hillyard and
Browning were examined. Despite the concerted effort, no
clarifying information was found on what the line represents, how
it was determined, and whether the conditions under which it was
made represent natural shoreline conditions. Therefore, the
Hillyard-Browning freehand line was determined unacceptable for
consideration or recommendation as a tideland boundary by this
report.
FINLEY MEANDER SURVEY
As stated before, S.H. Finley in 1889 performed a meander
survey and subdivision of the swamp and overflowed lands in Newport
Bay, including the Balboa Peninsula. Meander surveys run by
12
government contract surveyors were not expected to closely follow
the mean high water line as are boundary surveys done specifically
for that purpose. Tide heights were not measured, and no contour
line of 4.4 feet elevation, or other constant elevation, was
determined by the survey.
The government surveying instructions in force at the time of
Finley's survey (1881 Instructions) directed that meanders of swamp
and overflowed lands should be run at the ordinary low-water mark.
It is believed that Finley did not have a copy of these out -of -
print instructions. 3 In fact, his meanders in the marsh areas more
closely followed what would have been the approximate mean high
water mark. This bears out the experience of the writer that the
tidal low-water mark in marsh areas is oftentimes located in
unvegetated tide flats where the footing is very difficult and
unstable. It is much easier to run a meander line up on the marsh
vegetation, which is closer to the mean high water line.
An individual performing a meander survey would run a line
by course and distance that approximated an on -the -spot visual
determination of the shoreline or bank. The purpose of a meander
survey was to provide information on the amount of acreage in the
upland rather than determine an exact property boundary.
Nonetheless, in so * me instances government meander lines have been
adopted as tideland boundaries when they were determined to be the
best evidence as to the location of the historic shoreline.
OTHER SURVEYS
Some other surveys were reviewed as part of this study. They
were judged to be of historical interest but for various reasons
did not have a particular bearing on the location of the tideland
boundary. These include the following:
1. Corps of Engineers' Newport Harbor Survey of 1887.
2. Finley's 1889 survey,- Santa Ana and Newport Railroad.
3. Finley's 1891 alignment survey of Newport Avenue.
3 Executive Document of the House of Representatives, Session
of Congress 1889-90, Annual Report of the Commissicner of the
General Land Office (1889).
13
4. U.S.G.S. topographic surveys of 1894 et seq.
ACCURACY OF EARLY SURVEYS
Surveys of the 19th and early 20th century were not made
according to the same standards of accuracy that are used today.
Nineteenth century surveying standards set by the government
expected the meander courses such as those surveyed by Finley to
agree within 99 feet of the corresponding upland measure between
two points located about one mile apart. The survey by Finley
appears to have much less than the maximum allowable error, but
some inaccuracy is still to be expected.
Nineteenth century surveys of the U. S. Coast & Geodetic Survey
are reported by that agency to be accurate to within plus or minus
10 meters, but are often better than that. That distance
corresponds to about 33 f eet. Surveys by the Corps of Engineers
were probably done to a slightly lower standard of accuracy than
those of the U. S. Coast and Geodetic Survey. This latter statement
is based on 40 years personal experience in working with surveys by
both agencies.
These accounts show that it is impossible to locate a historic
line of mean high water with a high degree of accuracy f rom. the
types of historic surveys available here. All due care was
exercised in the relative positioning of the old lines during this
study, but the accuracy of the results are nonetheless hampered by
the early survey limitations.
ARTIFICIAL CHANGES TO SHORELINE
Based upon an inspection of historical maps and other records,
the shoreline in the subject area appears to have remained in a
state of nature and was generally stable in position until the time
of the filling that probably occurred in the late teens or early
1920's. There is some variation in shoreline positions between the
late 19th and early 20th century surveys, but they all fell within
a roughly 100 feet wide swath. In combination with the nearby
channel construction, dredger spoils were placed along the
shoreline to fill in parts of the natural bay. In this manner the
14
shoreline was moved about 200 to 250 feet further bayward.
According to statements in the 1973 book, Newport Bay, A
Pioneer History, by Ellen K. Lee, page 82, dredging and filling
operations at the subject property were conducted by the City of
Newport Beach. The city's work in dredging the city channel was
finished in April, 1920. A measure of confirmation on the,date of
the filling operation appears on promotional letter paper of the
local Parkinson Syndicate. The paper is dated 1921 and notations
indicate that a [city] channel 10 feet in depth extends a similar
distance [31 miles] to the City turning basin located in the
western arm of the Bay. This is interpreted to mean that the city
channel was already constructed beyond the subject area in 1921.
Since shoreline filling was an adjunct of the dredging, statements
in the Lee history appear to be affirmed.
STATE LEASES OF ADJACENT TIDELAND PROPERTY
At the time of the dredging of the city channel and filling of
the peninsula shoreline, the tidelands and submerged lands fronting
privately owned property within the city limits were still under
the jurisdiction of the state. Only tidelands fronting city -owned
lands were granted to the city by the st�te Legislature in 1919.
The ungranted filled tidelands remained under state ownership
and control despite the fact they were now of an upland character.
Interest grew in putting the new lands to use, and the Legislature
in 1925 passed an act providing for leasing of the filled property
(Chapter 121, Statutes of 1925). T�e act applied only to land
adjacent to subdivisions along the south shore of Newport Bay.
i
Leasing rates were determined by the State Board of Control
and the Surveyor General. The rates were based upon frontage along
the Bulkhead Line, and no attempt was made to define the ordinary
high water mark boundary dividing uplands from tidelands.
Ultimately the boundary along most privately -owned uplands was
established by court and legislative action as previously alluded
to. The new boundaries were set in such position that all of the
leased lands wound up being in private ownership.
15
ANALYSIS AND RECOMMENDATION
The location of the legal ordinary high water mark, or
tideland boundary, has been unknown along the city property since
the natural shoreline was obliterated by filling operations. The
California State Surveyor General in 1925 expressed his views on
the difficulty or impossibility of locating the actual high tide
line as it existed at the time of making the fill.4 Research into
federal, state, and local records did not turn up any survey of the
4.4 feet contour prior to the filling operations. Thus it is
impossible to determine with certainty where the ordinary high
water mark boundary is located. In such a case, other evidence is
studied to determine the location that best represents the position
of the line of mean high water prior to the shoreline filling.
The 1889 Finley meander line through the subject area is
considered an approximation of the high water mark boundary. The
line appears to be located slightly landward of both the c. 1920
Hillyard-Browning freehand line and the 1905 Section B heavy
freehand line, and yet noticeably bayward of the 4.4 feet contour
as determined from the Corps' 1912 survey. It is also bayward of
the outer or waterward edge of marsh as shown on the 1875 USC&GS
topographic map.
It is the opinion and recommendation of this report that the
1889 Finley meander line is the best evidence of, and most closely
reflects the location of the ordinary high water mark and tideland
boundary.
LOCATION OF THE RECOM4ENDED TIDELAND BOUNDARY
The 1889 Finley line is mathematically defined in relation to
three government section corners also placed by Finley. Because
the meander and section line surveys both contain some error,
alternative positions of the Finley meander line relative to the
subdivision and pierhead lines can result depending on how the
error is distributed. The mathematical or coordinate locations of
two of these government section corners are shown on the 1912
4 Letter dated September 14, 1925 from W.S. Kingsbury to Mr.
C.T. Peabody, c/o The Parkinson Syndicate, Newport Beach.
16
Corps' survey, as are.positions later adopted for the 1916 Pierhead
and Bulkhead lines. The two section corners located by the Corps'
survey are for sections 27, 28, 33 and 34, and sections 20, 21, 28
and 29. Thus there is an ability to locate the Finley meander line
relative to the 1916 Pierhead and Bulkhead line.
The distance and direction between the two section corners
positioned by the Corps agree exactly with the Finley record
dimensions. This condition could only result if both Finley and
the Corps measured with absolutely no error. Such a situation is
virtually impossible considering the surveying methods and
accuracies attained a century ago. Thus, of the two section
corners shown, it is believed that only one is positioned by field
survey and the other determined by calculation using Finley's
dimensions. Based upon a review of the available data, the Corps'
location for the corner to sections 27, 28, 33 and 34 is believed
to be the result of field measurement, while the corner location
for sections 20, 21, 28 and 29 is believed to have been determined
by calculation from Finely's measurements.
The U.S. government land office method for reestablishing the
position of a meander line involves using two or more section
corner positions. This affords a check on the accuracy attained.
In this instance, there is only one section corner position that is
felt reliable for position determination. Therefore, the location
for Finley's meander line using only Corps of Engineers' data lacks
the check afforded by using two corner positions as provided by
government land office standards.
An alternative location for the Finley meander line appears on
Official Map No. 108 on file in the City of Newport Beach Public
Works Department. The location shown on this official map agrees
within about one foot with the approximate method using the Corps
of Engineers survey. The meander line location shown on Official
Map No. 108 agrees well with the alternative method employed here,
and has the benefit of prior adoption by the city. The Map No. 108
position of the Finley meander line is therefore adopted for
recommendation by this report.
17
Prepared by:
-1,4gz-,� ao. ZAM
Francois D. Uzes V Dute
Professional Land Surveyor
My License Expires 6/30/96 1)
is D.
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18
APPENDICES
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March 21, 1989
Newport narbor
Amerienst Legion Post No. 291
215 15th Street
Newport Beach, California
673-5070
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663-3884
Atten:'.. Marine Director, David Harshbarger
Dear Mr. Harshbarger;
At a special called meeting of the Corporate Board of the
Americari Legion Post 291, Inc. on March 8, 1989 1 presented
your letter of Feb. 27, 1989 for consideration. Your enclosed
drawing showing pier, ramp and dock was considered, and it
was the opinion of the board that a locked gate was needed to
prevent entry to the ramp from the dock, thus preventing free
access to our beach area.
With the addition of the above mentYoned gate and the dredging
shown of our entrance channel to our marina it was voted to
accept your proposal. This above stated action by this board
is duly recorded in our minutes of this meeting.
Trusting this action will enable speedy aition on all phases
of this pumpout station.
WW/mr
Sincerely,
) Wi
--; nston West
Corporate Board Member
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EXPENDITURES
qAT_AI�TPq a IN UT r� Z:) :
Marine Facilities & Land Use
Man/Days Rate/p.hri Total
Summer
Easter Week 196 3.75
$5,880
off season 82 3.75
2,460
TOTAL 278
$8,340
MAINTENANCE OPERATION COST
Marine Facilities
Postage (billings, etc.)
$ 100
Professional Services
(Marine Contractor)
500
Maintenance Equipment
250
Utilities
1,200
Office Supplies
150
Maintenance & Repair Materials
750
Small Tools
25
Insurance
SUB -TOTAL
Land Use Facilities
Parking Lot Maintenance Cost
Dry Boat Storage & Launching
Facility Cost
SUB -TOTAL
TOTAL EXPENDITURES
Depreciation
750
$3,725
250
500
$ 750
$12,815
$ 1,50 0
EXHIBIT A
Salary: The attendant(s) cost are
based on a seasonal rate
compared to wages paid by
private marina operators.
The total man days reflect
two men during the summer
season and one man on week-
ends and holidays during
the off season.
DI & 0: These costs were estimated
from figures extrapolated
from the following reference,
sources:
1. American Legion Profit
2.
-3.
4.
Depreciation:
and Loss Statement dated
1972.
Contract services from a
local marine contractor.
Maintenance expenditures
experienced by a private
marina operator. .
Marine Department current
M & 0 budget costs for
p'arking lot operations
and certain marine
related activities.
The marina, for accounting
purposes, was amortized over
a 20 year schedule. The
approximate cost of slip;
pier and float construction
is $10./sq.ft. The existing
marina portion of the American
Legion Lease is in excellent
condition at this time.
However, a depreciation cost,
per annum, is shown to reflect
a more complete evaluation.
SUBJECT: EXPLANATION - COST EFFECTIVE COMPARISON STUDY SHEET
AMERICAN LEGION OPERATION
1. The percentage of the gross figure (30%) is somewhat of an
arbitrary figure. However, 30% is at the high end of the
spectrum based on a survey conducted by the Southern California
Marina Authorities Lease Information Exchange Committee. The
survey covers 17 different agencies from San Diego to Santa
Barbara and was completed in 1973.
2. The marina slips gross revenue figure of''$37'.900 was furnished
by the American Legion and represents approximately an average
charge of $2.30/ft./mo per vessel. The Marina, for all practi-
cal purposes,is at 100% of capacity. Currently, there are (15)-
30' outside slips, (16) 241 inside slips, (18) inside side ties
(varying lengths) and (8) dinghy tie-ups.
3. The $5,355 gross revenue from the proposed guest slips was cal-
culated as follows:
Summer = 98 days x $5.00/day x 6 slips x 75% occupancy = $2,205.
Winter = 266 days (8.75 mo.) x $100/mo. N 6 slips x 60%
occupancy = $3,150.
During the winter months, the slips would be rented out on a
monthly basis. Should experience indicate that the occupancy
rate for either the summer (daily) or winter (monthly) basis
is.not adequate, the slips could be rented year around on a
monthly schedule.
4. The $26,473 gross revenue from the parking facility was calculated
as follows:
Summer
= 98
Days x
$4.00/day x
62
spaces x
75% occupancy =
$18,228.
Winter
= 266
days x
$2.00/day x
62
spaces
x 25% occupancy
=$ 8,245.
The proposed developed parking facility would be staffed with an
attendant instructed to maintain a certain percentage of the park-
ing spaces for boat launching and civic legion purposes. Based
on experience, the remaining lot spaces could be used for beach
parking in order to maximize revenue with capacity.
CITY OPERATION
1. The figures shown under the Salary & M & 0 Expenditures column
were derived from the attached Expenditures -Sheet (Exhibit A).
For accounting.purposes, the total salary figure of $8,340 was
split between the Marina and the Parking.
2. The depreciation figure of $l',5'0'0/year is not reflected.in the
Total City Net figure of $68-,"314.
Page Two
3. The one time capital—improvement costs for such items as paved
parking, parking attendant bo demolition and relocation of
old buildings and launching ramp are not included. These items
require further study and contact with the State Department of
Ocean Development and Navigation to determine if they will
finance the launching facility.
CONCLUSION
The following table depicts a percentage range continuum illustrating
when, as an American Legion operation, a varied percentage gross
receipts scale would balance against a City Operation.
% Gross City
Gross Revenue Pd. City Net
81,658 30% 24,452
81,658 40% 32,663
81,658 50% 40,829
81,658 60% 48,994
81,658 70% 57,160
81,658 80% 65,326
81,658 83.9% 68,514
In other words, the above figures (City Net) represents what percentages
of the gross receipts would amount toln revenues paid to the City if
the American Legion were to retain total control and operation. It is,
,therefore, only a shopping list for Council review. Anyone of these
percentage factors can be selected, which fits Council's own value judg-
ment on"a fair market value return for Tidelands Use for the benefit of
the public.
(FACILITIES EXCLUDING BA&) 1974 vrs 1972
0?-7i\'ATING EXPENSE
Salaries
1/72-12/72
1/74-6/74
.1/74-12/74
263.97
Payroll '.:axes
12 Mos.
6 Mos.
12 Mos.
Differences
Auro
Actual
Actual
*Extrapolated
(Major)
N C OINE
0
0
0.
Marina
35,696.49
17,346.00
34,692.00,
1,0r,4.49
Lockers
1,131,00
5-71.00
1,142.00
+ Zi.oc
D'ry Storage
11,970.00
6,2;8.00
12,516.00
+ 546.00
Ilentals, halls & other
3,455.00
1,730.00
3,560.00
- 721.26
terest
1,394.47
1,438.00
2 876.00
Miscellaneous
34.54
510'.00
1,020.00
Transfer from Bar for Payroll
Tax 702.10
0
0
Bar Sales
579.40
286.00
572.00
TOTAL INCOME
54,383.60
00
54,7,86.00
+ 375.74
CIOST OF SALES
237.58
129.00
258.00
T iquor, Beer, and Misc.
136.40
0
0
Repairs & Maintenance - Gen'l
738.27
96.00
192.00
546.27
�;,-ROSS �LkiiWTUIN
54,383.60
2-7 33U.00
54J86!00
+ 375.74
0?-7i\'ATING EXPENSE
Salaries
17,599.97
8,663.00
17,336.00
263.97
Payroll '.:axes
1,434.29
888.00
1,776.00
Auro
396.87
146.00
292. 00
Cas'a Difference
0
0
0.
Contracted Services - Lab.
582.00
240.00
480.00
-102.00
Contracted Services - Music
0
0
0
Depreciation
6,703.95
2,937.00,
5,�74.00
- 329.95
Insurance
2,855.26
1,067.00
2,134.00
- 721.26
-Interest
0
0
0
Laundry & Uniforms
670.84
510'.00
1,020.00
Legal & Accounting
645.00
0
0
Ma 111 ng
579.40
286.00
572.00
Nurses' Scholarship
300.00
0
0
Office
237.58
129.00
258.00
Refunds
136.40
0
0
Repairs & Maintenance - Gen'l
738.27
96.00
192.00
546.27
,lepairs & Maintenance - Marina
1,719.59
2,223.00
4,446.00 (2)
+ 2,726.41
Repairs & Maintenance - Special
303.11
1,203.00
2�406.00
+ 2,097.89
Rent
3,498.75
1,965.00
31930.00
Supplies
1,392.22
754.00
1,508.00
Taxes & Licenses - Property
5,791.01
2,253.00
4,506.00
Taxes & Licenses - Other
84.00
168.00
Telephone
939.44
513.00
1,026.00
Utilities
2,791.87
1,256.00
2,512.00
Unclassified - Bar Decoration, etc.
90.00
'180.00
.L
IOTAT
T - OPERATING EXPENSES
49,280.82
25,308.00.
50,616.00 (3)
+ 1,335.18
NET INCO�IE 5,102.78 2,085.00 4,170.00 (4) - 9'�2.78
*Eztrapolated column represents the six months column doubled.
Numbers - see Explanation Questions (Attached)
The Ist column should be compared with the third column to give the difference in the 4th
column.
SUBJECT: COMENTS AND QUESTIONS REFERENCE THE ATTACHED COMPARISON SPREAD SHEET
7"he attached Income and Expense Sheets for the calendar years 1972 and 1974 were
comDared �'facilities only) on the spread sheet for the purpose of isolating any
m,njor differences * during the sample periods. It should be noted that the actual
ri
r1ures for 1974 exists only through June 30, 1974, so these figures were doubled
for the comparative purpose.
Lhe "i'solated difference" column on the spread sheet lists both plus and minus
fi-ures selected to show differences using the 1972 calendar as a base. The
0
IF "lowing questions could be raised from the comparative differences.
-o-
Why is the gross income for 1974 (projected) ONLY $375.00 more than 1972.
is this figure consistent with inflationary factors?
2. Why are the three categories of repairs $4,2278.03 more in 1974 (projected)
than in 1972? This area represents the largest difference of any other
single or associated combined entry.
3. Why are the total operating expenses for 1974 (projected) $1,335.18 more
than 1972? is this figure consistent with inflationary factors?
4. Why is the net income from 1974 (projected) $932.78 less than 1972?
5-�atement was prepared from the books and records of the Corporation and --*s
-.herewith; however no indeperident verification of indivicLal accounts waa
Zor inter.nal use only.
X
SL%I.II'ZS SERVICESO INC. By:
C".
COIN13=0 STA &.
OF !-,&COME AND EXPENSE
January 1 .1972
to December 31, 1972
"ac4 -I i -1 --es
Bar
omb
C 0 0
75,69'.49
35,69.
Lookers
1',970-00
!-,573-00
Dry storage
-'s,
3,455-00
R e -, ta halls and other
19394-47
354-41
-7-
—terest
34-54
scel-2aneous
,ransfers from Bar for payroll taxes
702.10
-7U 2
Bar sales
Total Income
�3.60
32,818.02
87,20-
Cc)Z,-� c' Sales
:,-_:cuor, beer and miscellaneous
13,51
19,306.62
7
.54,383
C—in�-, Expense.
179559-97
3,417.20
2
?ay-zolll taxes
19434.29
318.64
396.87
7.60
flierences
labor
582.00
22895-84
21 -'7
- 4
"On'—'act services -
.p-nzract services - music
1,864-00
6,703-95
239-05-
25.20
.Ja,,,n�—ry and uniforms
670-84
& accounting
645-00
770-50
5,79-40
Nurses scholarship
300-00
0 1- f I; c e
237-58
55-91
2
�,elunds
136.40-.
Repairs and maintenance general
738.27
421.10
Repairs and maintenance - Marina
97'9-59'
Re -pairs and maintenance 7 special
308-11
-z,
3,498-75
4 98
R,
Supplies
1,392.22
392.17
Taxes and licenses
5,791-01
37-0-00
Tele-Dhone
939-44
U T, i'll. t i e S
2 791-67
2,
Unc-.assifiled - bar decorationsp e1oc-
201.83
Total Operating Expense
49,280.8
C C -,-i s e :L n, Equity
3 4 - Llt��
5-�atement was prepared from the books and records of the Corporation and --*s
-.herewith; however no indeperident verification of indivicLal accounts waa
Zor inter.nal use only.
X
SL%I.II'ZS SERVICESO INC. By:
COMBINED STATEMENT OF INCO',111- AND EXPENSES
JANUARY . 1, 1974 TO JUNE 30z1974
X, a r n a
Lockers
Dry Storage
R en --a I S
Interest on Building Fund Accounts
Bar Sales
TO'k-A-L,
co�:7
Beer and Miscellaneous.
CIROSS YARGIN
EXPE'NiSES:
- I
iotal Operating Expenses
T
NET INCOME
" A /I T T T rr T V Q
�17,346.00
1 571.00
67258.00
1,780.00
17438.00
.00
$27,393.00
.00
�27,393.00
8t668.00
888.00
146.00
.00
240-00
.00
2,937.00
1,067.00
510-00
.00
286.00
129.00
1,965.00
96.00
21,223.00-
1,203.00
� 754.00
2,253.00
84.00
513.00
1,256.00
. 90.00
�25, 308. 00
. . $ 2,08 5. 00
I BAR
.00
.00
.00,
�.00
.00
18,002.00
�18,002.00
7,187.00
$10,815.
2,978.00
297.00
.00
88.00
706.00
1,086.00
127.00
.00
.00
431.00
.00
15.00
.00
.00
-00
.00
286.00
.00
.00
.00
.00
.00
6,014.00
$ 4: 80 1.00
n T V1,7')
�17,346.00
571.00
6:" 258. 00
7 88 0 . 00,
$45.395.00
7 18 7. 0 U\
3 8 2 C S - 0 0
4 3 1
286. 03"
14 4 . 0,'-
9 6 5 . ! " :_,
2,223.00
2 031 . 0 0
040.CO
2,253.00
84.00
513.CO
A.'256.00
90.011,
*31,322.00
* 6.886.00
T'his Statement was prepared from the books and records of the Corporation without 1.ndepen��ent
v I erification of individual accounts and is for internal, use'only.
I
WESTERN BUSINES . S SERVICESP INC.
?ay,-o.L'- Taxes
to
ference
Cash D"*f�
Conzirac� Services-Labir and Catering
Services -Music
su rance
',i.,ndry and Uniforms
Legal and Accounting
,,',a 5- 1. ing
Office
--'jz
- -,cpairs and Maintenance -
General
4epairs and Maintenance -
Marina
Reoairs and Maintenance -
Special Equipment
Supplies
1,ixes and Licenses - Property
kaxes and Licenses - All
Others
�elephone
Utilities
Unclassified
- I
iotal Operating Expenses
T
NET INCOME
" A /I T T T rr T V Q
�17,346.00
1 571.00
67258.00
1,780.00
17438.00
.00
$27,393.00
.00
�27,393.00
8t668.00
888.00
146.00
.00
240-00
.00
2,937.00
1,067.00
510-00
.00
286.00
129.00
1,965.00
96.00
21,223.00-
1,203.00
� 754.00
2,253.00
84.00
513.00
1,256.00
. 90.00
�25, 308. 00
. . $ 2,08 5. 00
I BAR
.00
.00
.00,
�.00
.00
18,002.00
�18,002.00
7,187.00
$10,815.
2,978.00
297.00
.00
88.00
706.00
1,086.00
127.00
.00
.00
431.00
.00
15.00
.00
.00
-00
.00
286.00
.00
.00
.00
.00
.00
6,014.00
$ 4: 80 1.00
n T V1,7')
�17,346.00
571.00
6:" 258. 00
7 88 0 . 00,
$45.395.00
7 18 7. 0 U\
3 8 2 C S - 0 0
4 3 1
286. 03"
14 4 . 0,'-
9 6 5 . ! " :_,
2,223.00
2 031 . 0 0
040.CO
2,253.00
84.00
513.CO
A.'256.00
90.011,
*31,322.00
* 6.886.00
T'his Statement was prepared from the books and records of the Corporation without 1.ndepen��ent
v I erification of individual accounts and is for internal, use'only.
I
WESTERN BUSINES . S SERVICESP INC.
7eptember 19, V974
COWTIONS FOR AMERICAN LEGION LEAS&RENEWT.
-1. Annual lease for buildings and grounds excluding piers and s7 ... ........
$1.00
2. Annual lease for piers and slips ................... ...... .......
430% of Gross
3., Length of leases ................... ..............
10 Years
Legi on will continue to administer the use of the main Legion building and
the lan&:
provided for dry boat storage. City will receive $1.00 per year for th6se-facilities.
As a lease condition the American Legion will construct a pier and six slips to be used
for overnight guest docking purposes. The Legion Will administer the.assignments and the
..use fee. Legion Will retain 70%,of the Gross and will provide all maintenance to piers
and floats4 Approximate cost of pier and float construction isAl2,000.
Parking revenues will be retained by the City. Following is a schedule of
existing
and antipipatel revenues.
REVENUES
Anticipated
City Legion Ci ty
sjipsj�� 3,500 $013500 10.000 24,500
Parki ny 0 0
310; 170:
�,A Jease 0 0
Guest'jQ& 0 0 1,260
3,501 31,500 41,931 $ 27,440
PARKING REVENUES
4.00 1 7 days" IX TO weeks 49 spaces
13.720
$,2,Op X 7 days X 10 Weeks AT spaces $
1,820
$ 2.00 X 7 days X weeks X 49 spaces $
13,720
.50 X 7 days X 20 weeks X 13 spaces
SO
30,170
This projection anticipates.no revenue for 20 weeks.
Outlay: 62 meters @ $85.00 5,270
Guest Slip Revenues:
5.00 X 7 days X '20 weeks X 6 slips 7
4,200
Legion $ 2,940
City $ 1,260
'This projection anticipates no revenue for 30weeks.
,_.= � t
;� �
s--, il Eti
........ .
A
73
F. .... -,*--,-
lit T71
m.7 -10" -
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00
cq
bo
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- M I �17 . , W
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Ul
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ctlz
1%. 1. 1 1 -Oj
NA
. . . . . . . . . . . . . . .41
lb
tj
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14
NN
'44
t7�
NA
. . . . . . . . . . . . . . .41
lb
tj
fS
14
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'44