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HomeMy WebLinkAboutItem 1 - Mooring Review Handouts Presentation to Harbor Commission Regarding Newport Harbor Mooring Fees and Transferability March 23 , 2015 r LA Decision Parameters • FAIR outcome for all tidelands users • Based on the relevant facts & market information • Consistent with tidelands grant requirements • Capable of providing sufficient funds to maintain and protect the tidelands environment 2 Annual Mooring Fees • The current fee of $55 per linear ft. is unreasonable and out of line by several measures • A reasonable fee is $25 per linear foot: — Appraised values of Tidelands useable for residential piers is 50 - 55 cents per square foot — Adjusted Comparable San Diego is $26/ft. — CPI based adjustment would be $25/ft. • How do we compensate permittees for the years overcharged? 3 History on Permit Transfers • Historical policy supports transfers Early boaters were encouraged by Government to set up moorings • Changing the long established policy on transfers was unfair • Permit holders for other public resources are allowed to transfer permits Radio & TV networks on public airwaves Oil & Gas exploration Grazing rights — Commercial Fishing 4 Transferability • Transferability Promotes Affordable Access Limitations on amounts received and high transfer fees hamper affordability and access Auctions would hamper affordability and access • Transferability Means Responsibility • Transferability Promotes Transparency • Transferability Does Not Result in Windfall Profits 5 Public Benefit • Mooring transfers are not illegal . . . but value must be given back to the public. • Mooring Permittees give back to the public in several ways: Annual fees paid into the Tidelands Fund are the highest of any user group Vacant moorings are used by visiting yachts and the fees paid go to the Tidelands fund Permittees maintain the mooring tackle to ensure the harbor is a safe haven and safe for navigation Yacht clubs sponsor races & regattas, education, youth programs and community fund raising activities 6 Public Policy and Tidelands • The transfer of mooring permits is a policy question to the Council , not a legal question . (per Aaron Harp) • Administration of the Tidelands should be equitable for all using the Tidelands for essentially the same purpose, in this case boat storage. • Mooring fees and charges should be on a par with residential pier permittees. • Mooring permit transfers should be allowed as residential pier permits are allowed to transfer freely with the sale of property. 7 Mooring Permit Transfers & Transparency Total Moorings Cumulative Transfers 978 2000 thru 2014 807 2 35 30 31 82 96 82 58 67 46 54 49 38 71 4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Permit transfers moorings average is 54 annually Establish an online listing site for transparency to ensure Ordinance requirements are met , _ 8 Tidelands Funds 2015 estimated contributions based on current fees Mood s $ 11678,947 $ 80,000 $ 1 ,758,947 Residential Docks $ 589,200 $ - $ 589,200 Commercial actual 2011 $ 566,000 $ - $ 566,000 Yacht Clubs & Lido C.A. $ 308,638 $ - $ 308,638 9 Tidelands Funds 2015 estimated contributions based on recommended fees Annual Fees Rental Income Total for Fund Contributions Mood s $ 757,238 $ 80,000 $ 837,238 Residential Docks $ 589,200 $ - $ 5897200 Commercial actual 2011 $ 566,000 $ - $ 566,000 Yacht Clubs & Lido C.A. $ 129,425 $ - $ 129,425 10 ;; , Tidelands Doctrine • Inconsistent Policies for Administration of Boat Storage • Equal treatment is required under Tidelands Trust Permit Permit Profit Allowed Rental Income Rental Annual Fee Transfer Transfer Allowed Income To Adjustment Allowed Fee Tidelands Fund Two times until 2021 $1,100 None after 2021 Moorings and $80,000 per (50%year mooring tackle No YES (assume 40') Intrafamily year fee -40') reverts to City and Trust ONLY after Residential YES to Third YES $285 YES None NO Docks Parties Yacht Clubs YES (from members to N/A N/A YES None YES 8c �IdO C.A. club) 11 Unfair Treatment For Tidelands Users • Marina Index Fee is neither justified nor reasonable • Most permit holders will be hurt financially with the loss of transfer rights • Harming many to stop a very few is a poor cure • In five years only 1 person from the Wait List has taken a permit from 5 available • Discriminatory pricing and administration is bad public policy and a violation of the Tidelands Trust 12 Recommendations • Set annual permit fee at $25 per foot - Based on 3 methods; CPI, Comparable & 2013 Tidelands appraisal - Consider ways of compensating for the overcharges 2011 - 2015 - Is it reasonable to index the fee annually? • Allow mooring permit transfers & preserve market driven process • Flat Fee for transfer administration - 25% to 50% of annual fees • Establish Web based listing for mooring permit transfers for transparency including listing price and actual selling price 13 Impact • Moorings Fees 25% increase over 2010 vs. 177% • Tidelands Contributions from moorings more in line with Trust doctrine Permit Permit Profit Rental Income Rental Annual Fee Transfer Transfer Fee Allowed Allowed Income To Adj. Allowed Tidelands Fund Speculation Moorings $250 $500 YES (25% - 50% limited by No $80,000 per TBD (assume 40') ann. fee -40') transparency & year frequency Residential Docks YES $285 YES YES None NO Yacht Clubs N/A N/A N/A YES None TBD and lido C.A. y. JW 14 r EVENTS THAT LED UP TO THE DEVELOPMENT OF THE PROPOSED MOORING MANAGEMENT ORDINANCE A three page SUMMARY of the DRAFT of that ORDINANCE dated APRIL 29, 2009 is ATTACHED In 2007,the Orange County Grand Jury issued a report that was generally critical of mooring transfers in Newport Beach. In response,the Harbor Commission formed a Subcommittee, Chaired by now Councilman Duffy Duffield, known as the Mooring Master Plan Subcommittee, (MMPSC)to correct and clarify,then modify as suitable, and codify,the transfer practices that had evolved over the years. For example,there was no formal mooring "waiting list" mentioned in any City code. There was an informal list on index cards kept in a box at the Harbor Patrol. Yet,the Grand Jury was critical of the City for allowing mooring transfers between private parties, and not treating the waiting list as if it were codified. As required by law,the City responded formally to the GJ report, in some cases agreeing,or partially agreeing, or totally disagreeing with the GJs'findings, many of which were erroneously based. Upon closer examination, it was not even clear as to what, exactly,those on the so-called "wait list" were waiting for. Anyone inquiring of City Staff or the Harbor Patrol as to how to obtain a Mooring Permit was advised that the "wait list" didn't move (25 years+)and that, as had been the way for decades, if they really wanted to obtain a Mooring Permit,they should go the well advertised open market and seek one that suited their needs for length, location,cost, financing,timing, and vessel. For a period of time in the early 2000's the City itself chose to bypass the so called "wait list" and auction those few permits that came back to the City.This further solidified public confidence in this system. Meanwhile,the vast majority of permits were transferred between private parties along with the vessel registered to the mooring, as had been the case for decades. As demand for berthing space in Newport grew,the real estate bubble and inflation occurred,the value of a mooring permit increased. Thus beginning in 2007,the Harbor Commission Mooring Master Plan Subcommittee(MMPSC)was tasked with finding a balance between those who had a substantial investment in their mooring,those on the waiting list(presuming these were looking for a place to keep a boat, and not entering a lottery), reducing speculation, meeting the legitimate funding needs of the tidelands, and opening up even more affordable public access(and generating more tidelands funds) by enabling the City to enter into longer term rental agreements of vacant moorings. The MMPSC was also advised that there should be more than just a paper processing fee as a charge for the transfer fee when mooring permits changed hands. A long and thorough process ensued. Volunteer members of the NMA, Harbor Commissioners,senior City Staff,two City Attorneys, and an NMA attorney all spent many hours on this project.The City Manager was copied and consulted regularly. Ultimately,to the dismay of the MMPSC and the Harbor Commission,the City Council created an ad-hoc Subcommittee to make its own recommendations for an Ordinance. Over the intense objections of the Mooring Permittees,the Council adopted that proposal in late 2009 on a split 4-2 vote.Since then fees have nearly tripled and transferability is half way to being ended. A Summary of the MMPSC Proposed Ordinance is supplied today.With the notable exception of transferability, many features of the Ordinance that was adopted are the same or very similar to the MMPSC proposal that wasjointly developed by the MMPSC, City Staff, other Professionals and Citizens. IRn A- -7 12�11 5 A brief summary of the draft mooring ordinance follows: In order to facilitate improved public access, provisions for vacant mooring rentals were established. >Mooring permittees may not rent the mooring to any other person. >The city shall have the authority to rent vacant moorings, except for those of the yacht clubs. >Available vacant moorings were given two categories, "Deemed Vacant" and "Noticed Vacant" >A"Deemed Vacant" mooring has not had an "assigned vessel" (the boat belonging to the mooring permit holder) on it for 30 or more consecutive days AND the city has not received notice from the owner as to when or if the vessel will return. >A"Noticed Vacant" mooring has not had the "assigned vessel" on it for 15 days or more, AND the city has received notification from the owner as to when they plan to return to the mooring. >The major difference between "Deemed Vacant" and "Noticed Vacant" moorings is the amount of lead time the permit holder needs to give the city in order for them to relocate any rental vessels occupying the mooring. A Deemed Vacant mooring requires 30 days advance notice; a Noticed Vacant mooring would be clear on the date stated in the permit holder's notice to the city, or only up to 24 hours if the date should change. >Establishing two types of available moorings allows for a more efficient categorization and utilization of rental capacity. It was devised to facilitate longer term mooring rentals (more than 30 days, up to 1 year), while still giving permit holders the security of knowing that their rented mooring would be available to them when they needed it. >"Short Term" rentals (up to 30 days) were envisioned to meet the general needs of the transient boater. Staying aboard the vessel during the rental period would be allowed, subject to vessel inspection. These rentals are available on a first come, first served basis. >"Long Term" rentals (more than 30 days, up to a year, renewable if space is available) were devised to meet the needs of boat owners looking for a place to store their vessel on a semi-permanent basis. Priority would be given to those on the "interest list" (aka, waiting list), the reasoning being that these individuals have been looking for a place to keep a boat in Newport Beach for some time without desiring to obtain a mooring permit on the open market. Living aboard on a long tern rental is not allowed, as it would be in conflict with existing live aboard regulations. While the city wilt make every effort to accommodate long term rentals, renters accept an indefinite term at their own risk. >Insurance and mooring equipment damage deposits would be required of all vessels utilizing the rental system. In order to facilitate efficient allocation of available moorings, permit transfers between individuals would be allowed, subject to rules to minimize speculation, maximize public access (rentals), and return funds to the tidelands (transfer fee). >An individual could engage in a maximum of two mooring transfers in a 12 month period, and can hold no more than 3 mooring permits in total. The Harbor Resources Manager can allow additional transfers or permits under special conditions (e.g., marine contracting)where there is no evidence of speculation. >Transfers could take place with or with out a vessel. However, if a vessel was not legally assigned within the required time, the mooring would become Deemed Vacant and available for rent. >A mooring transfer fee would be collected at the time of sale of the mooring tackle and transfer of the mooring permit to the new owner. The fee would be a percentage of the annual rental charge, as established by the council. These funds would be used for tidelands improvements. >Moorings could be traded on a one for one basis without a transfer fee; A mooring permit could be transferred to that individual's trust without a transfer fee. >A mooring permittee could loan their mooring to another vessel, rent free, for a maximum of 30 consecutive days, subject to Harbor Resources approval. This could be done no more than three times in the calendar year of the most current loan. >The vessel receiving a mooring loan could not be the recipient of all mooring loans for a total of more than 120 days in the previous 12 months. An "Interest List" will be formally established and codified. >Those individuals who wish to wait for a mooring permit to be revoked or surrendered to the city, or for a long term mooring rental, will need to maintain their names and contact information on an official list. >Those on the list will be notified when a surrendered or revoked mooring becomes available, or when a long term mooring rental is available. General Conditions of the ordinance: >The ordinance establishes what type of entity may hold a mooring permit (e.g., natural person, trust, partnership, marine contractor, yacht club). >The Balboa and Newport Harbor Yacht Clubs, and LICA, are responsible for management and control of their respective mooring arrangements. The two yacht clubs can submit an application for a pilot Multiple Vessel Mooring System, which would allow several smaller vessels to be secured to a floating platform affixed to an existing mooring. >Conditions for revocation or surrender of the mooring permit are established(e.g., non- payment of fees for 90 days; failure to perform required mooring maintenance; living aboard an assigned vessel without a permit; violation of mooring regulations in Section 17.25.020; refusal to allow an inspection of an assigned vessel.). >Mooring tackle which that is not removed by the owner after a permit is surrendered or revoked becomes the property of the city and can be assigned, sold, or auctioned along with the permit to those on the interest list. >One dinghy of up to 14' may be secured to the assigned vessel, or if the assigned vessel is not present, the dinghy may be left on the mooring. >Upon permit transfer, the new permit holder is required to: Provide proof of liability insurance on the assigned vessel, as required by the city's risk manager; Grant permission to the city to temporarily assign (rent) the mooring to another vessel when the mooring is unoccupied; Indemnify the city for losses arising from the use of the mooring, except for cases involving negligence by the city and/or a mooring renter; Be responsible for all fees and maintenance expenses. Draft - April 27, 2009 ORDINANCE NO. 2009- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 17.01.030 OF CHAPTER 17.01, SECTION 17.40.020 OF CHAPTER 17.40 AND SECTION 17.60.040 OF CHAPTER 17.60 OF TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO MOORING PERMITS The City Council of the City of Newport Beach finds that: 1. The Management and Stewardship of Newport Harbor has been granted under Tidelands Trust Legislation by the State of California. Vessel moorings on the City Tidelands are intended to provide a lower-cost alternative to boat slips in Newport Harbor and to provide boating accessibility to a larger segment of the population. Historically, starting from the 1930's, mooring transferability was limited under the Municipal Code to allow an individual mooring permit holder to convey the existing mooring hardware, and to transfer the mooring permit to another individual only in conjunction with the sale of the vessel assigned to the mooring. 2. When this system was developed, demand for moorings was minimal. Initially, an individual could request permission to install privately owned mooring equipment and would be assigned a location and a mooring number. Over the next thirty years when the designated mooring areas were filled, an informal wait list was established. However, as the demand increased over several decades, a significant value was associated with possession of a mooring permit that was far in excess of the value of the mooring hardware. As the value of the permit increased, the ability to acquire a permit from the wait list decreased significantly. 3. When there is great demand for moorings, a value is associated with a mooring permit in excess of the annual permit fees. This amendment to the mooring permit and transferability provisions of Title 17 provides for a revised process that is fair and equitable to all parties involved and identifies use fees, rents and charges that will assist in funding Harbor maintenance and dredging projects. NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: Section 17.01.030(A) (4) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: 17.01.030 Definition of Terms. 1 Draft - April 27, 2009 4. Assigned Vessel. The term "Assigned Vessel' shall mean a vessel lawfully registered, owned or documented to a Permittee to occupy a designated mooring or berthing location in Newport Harbor. SECTION 2: Section 17.01.030(J) (15) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: J. Definitions: M. 15. Multiple Vessel Mooring System. The term "Multiple Vessel Mooring System" shall mean a floating platform secured to a single point mooring only which allows multiple vessels to be secured that are shorter in overall length than the side of the platform to which the vessels are to be moored. SECTION 3: Section 17.01.030(N) (1) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: N. Definitions: R. 1. Rentals. a. Rentals — Long Term. The term "Long Term Rental' shall mean a period of between one (1) month to twelve (12) months that the City may rent a mooring which has been deemed vacant or noticed vacant. b. Rentals — Short Term. The term "Short Term Rental' shall mean any period of time less than thirty (30) days that the City may rent a mooring or moorings as determined by the Harbor Resources Manager. 2. Residential. The term 'Residential' shall mean those properties that are designated by the zoning code for a residential use, as opposed to commercial. 3. Riprap. The term "Riprap" shall mean a protective layer or facing of rock, concrete blocks or quarry stone, placed to prevent erosion, scour, or sloughing of an embankment or bluff. 4. Risk Manager. The term `Risk Manager" shall mean the Risk Manager of the City of Newport Beach, or his or her designee. SECTION 4: Section 17.40.020 of Chapter 17.40 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.40.020 Live-Aboards Prohibited. 2 Draft - April 27, 2009 A. Live-aboards shall not be permitted at piers that are bayward of residentially zoned areas. No person shall live-aboard any vessel on an onshore mooring. B. Live-aboards are prohibited on long-term mooring rentals as noted in Section 17.60.040(G). C. ' Live-aboards may be permitted on short term mooring rentals according to Section 17.60.040(G). SECTION 5: Section 17.60.040 of Chapter 17.60 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.60.040 Mooring Permits. A. Permit Required. No person shall place, erect, construct or maintain a mooring in the waters of Newport Harbor over City-owned or controlled tidelands without first having obtained a mooring permit from the Harbor Resources Manager. Any work described and authorized in the permit must be completed within the time period designated in the permit. B. Issuance of Permit; Conditions. The Harbor Resources Manager, in furtherance of the tideland grants to the City, may issue permits pursuant to the provisions of this Chapter to permit annually renewable or temporary mooring of vessels in Newport Harbor. Each Permit issued by the Harbor Resources Manager shall allow the Permittee to moor only the Assigned Vessel(s), which must be a vessel specified on the permit that is owned by the Permittee. 1 . Exceptions: a. The Balboa Yacht Club and the Newport Harbor Yacht Club (collectively, "Yacht Clubs") currently hold permits for single point moorings placed within certain mooring area boundaries established by the City, except as noted in Section 3-f below. In addition, the Lido Isle Community Association ("LICA") has permits for on-shore moorings on Lido Isle. Other organizations also have mooring permits in the harbor as well. These organizations shall hold their respective permits under the Yacht Club, or respective organization name, for the moorings identified by Harbor Resources as under their respective control at the time of enactment of this ordinance. The Yacht Clubs and LICA shall be solely responsible for managing moorings under 3 Draft - April 27, 2009 their control and shall be permitted to assign moorings under their control to Yacht Club members and members of LICA, respectively. The Yacht Clubs and LICA shall keep accurate records of the name and address of the club members and community association members to which each mooring has been assigned. Mooring records shall be made available for audit by the Harbor Resources Manager during regular business hours upon request. b. Mooring of a tender. A vessel no longer than fourteen feet (14') in overall length to serve as access to and from the Assigned Vessel, may be secured to the Assigned Vessel or may be secured to the offshore mooring in the absence of the Assigned Vessel. C. Multiple Vessel Mooring System Pilot Program. The Harbor Resources Manager may approve Multiple Vessel Mooring System in the mooring areas of Newport Harbor Yacht Club and the Balboa Yacht Club. An application for a Multiple Vessel Mooring System shall be submitted in writing to the Harbor Resources Manager, who shall evaluate the application based upon standards he shall have established. 2. Permit Requirements. Each mooring permit shall be issued to one natural person (Permittee) who shall be responsible for all activities related to the mooring permit. To the satisfaction of the Harbor Resources Manager, the Permittee shall: a. Identify on the permit the full legal name(s), current address, current telephone number and current e-mail address if one exists; b. Agree to be responsible for permit fees, maintenance and repair of mooring equipment; C. Grant permission to the City of Newport Beach to temporarily assign the mooring to another vessel when it is unoccupied; d. Defend and indemnify the City of Newport Beach and any other government entity with jurisdiction against any claims or losses arising out of, or related to the use of the mooring permit except where the claim or loss arises out of the sole negligence and/or sole misconduct of the City and/or person renting the mooring under subsections F and/or G below; e. Provide proof of liability insurance on vessel as determined by the City's Risk Manager, and; f. Provide registration or other proof of controlling possessory right in the Assigned Vessel, all to the satisfaction of the Harbor Resources Manager. 4 Draft - April 27, 2009 3. Permittee/Transferee Qualifications. A mooring permit shall be held by or transferred only to the following persons: a. A natural person holding title to an Assigned Vessel; b. A natural person who obtains title to an Assigned Vessel under a will or other testamentary instrument, and/or under the applicable Probate Code; C. An intervivos trust, family trust, or other similar type of trust holding title to an Assigned Vessel so long as all trustors are natural persons (if there are any conflicts between the provisions of the trust terms, particularly with regard to any asset transfer provisions, the provisions of this ordinance shall prevail) (How do we address primary permittee, designated permittee, survivor etc...- good question for City Attorney); d. A documented partnership of all natural persons holding title to an Assigned Vessel; e. An approved transferee whose vessel and/or mooring are subject to any of the terms and conditions stated in 17.60.040(E); f. A marine contractor or marine support service provider, holding title to an Assigned Vessel used to provide current or ongoing harbor infrastructure and marine or fishing services (such as maintenance and dredging) as authorized under the provisions of a Marine Activities Permit; g. The Balboa Yacht Club, Newport Harbor Yacht Club and LICA - only for those moorings assigned by the City of Newport Beach within certain established mooring areas or locations, prior to the enactment of this amended ordinance. The boundaries of these designated mooring areas may not be expanded. C. Plans and Specifications Required. No permit shall be issued for placing, erecting, constructing or maintaining a mooring unless such mooring is constructed: 1. In accordance with standard plans and specifications approved by the Harbor Resources Manager and at a location approved by the Harbor Resources Manager, or; 5 Draft - April 27, 2009 2. In accordance with other plans and specifications for the mooring or buoy which have been submitted by the applicant, showing the construction of the proposed mooring or buoy together with the location, and which meet the requirements established in this chapter and which have been approved by the Harbor Resources Manager. D. Unpaid Fees. When the Permittee is in arrears for a period of ninety (90) days or more, the Harbor Resources Manager may, at his/her discretion, revoke the permit upon five (5) days written notice to the Permittee by first-class mail to the address shown on the permit. E. Transfer of Permit. A permit may be transferred if the Permittee intends to sell or otherwise transfer, or has sold or transferred, ownership of the Assigned Vessel and does not intend to replace the Assigned Vessel with another vessel owned by Permittee. Permits shall not be transferred without the prior written approval of the Harbor Resources Manager. The Harbor Resources Manager shall approve the transfer of a mooring permit under the procedures set forth below: 1. The Permittee (or, if the Permittee is deceased or incapacitated, the Transferee as defined below) shall submit to the Harbor Resources Manager: a. A completed mooring transfer form (on the form provided by the Harbor Resources Manager); and b. Documentation that the proposed new Permittee (Transferee) qualifies as a Permittee under section B (3) above. 2. If Transferee intends to purchase an Assigned Vessel but does not have title on the Assigned Vessel owned by the Transferor at the time of transfer, then: a. Within sixty (60) days of a transfer, Transferee shall submit to Harbor Resources Manager a copy of a California Department of Motor Vehicles registration or other current registration (or in lieu thereof, U.S. Coast Guard documentation of ownership) documenting Transferee's ownership of the Assigned Vessel, or in the case of a shore mooring, a photograph of the Assigned Vessel if it is not subject to vessel registration laws; or b. If such documentation is not received by the Harbor 6 Draft - April 27, 2009 Resources Manager within the sixty (60) day period, then the mooring may be deemed vacant and may be rented pursuant to Section 17.60.040(F) & (G) below. 3. If Transferee intends to moor a vessel other than the Assigned Vessel and does not have title to the vessel that will be moored at the time of transfer, then: a. Within sixty (60) days of an approved transfer the Transferee shall notify Harbor Resources Manager that the Assigned Vessel has been removed from the mooring and before a new vessel may be placed on the mooring shall submit to Harbor Resources Manager a copy of a California Department of Motor Vehicles registration or other current registration (or in lieu thereof, U.S. Coast Guard documentation of ownership) documenting Transferee's ownership of the new Assigned Vessel, or in the case of a shore mooring, a photograph of the new Assigned Vessel if it is not subject to vessel registration laws; or b. If the documentation is not received within 60 days of a transfer, the mooring may be deemed vacant and may be rented pursuant to section G below. 4. The transfer request shall be denied unless Mooring Permit fees are paid current; required mooring inspections are current; required maintenance and repairs are complete and there are no derelict or unauthorized vessel(s) on the mooring. 5. The Permittee and Transferee shall provide a written agreement to defend and indemnify the City of Newport Beach in any dispute with a third party over Transferee's right to be the Permittee or in any dispute with a third party over the permittee's right to transfer the permit. 6. Transfer Approval. Upon confirmation of compliance with Section E above, the Harbor Resources Manager must find all of the following conditions to approve the transfer of a mooring permit: a. The Permittee no longer owns the Assigned Vessel or has retained ownership of the Assigned Vessel and has permanently vacated the mooring; b. The Permittee has not transferred more than one offshore mooring to another Permit Holder during the previous twelve (12) months; 7 Draft - April 27, 2009 C. The Transferee does not hold more than two (2) other mooring permits; d. The Permittee and the Transferee have met all the qualifications and conditions for issuance of a permit in Section B above. e. Additional mooring transfers may be allowed under Sections (a), (b) and (c) above at the sole discretion of the Harbor Resources Manager provided there is reasonable necessity and no indication of mooring speculation. 7. The Harbor Resources Manager may approve a one for one exchange of moorings between two permittees, subject to compliance with Section E above without any transfer fee imposed by the City. 8. The Harbor Resources Manager may approve the changing of an Assigned Vessel on the permit, subject to the requirements of Section B above, without any transfer fee imposed by the City. F. City's Authority to Rent out Moorings. Permittee may not rent the mooring to any other person. With the exception of moorings issued to Permittees described in Section B (3) (f), City shall have the authority to rent out vacant moorings pursuant to the following provisions: 1. Deemed Vacant Moorings. City may rent out Deemed Vacant Moorings as long term rentals at its own discretion for any period of time up to one (1) year. Long term rentals may be renewed upon availability. The Permittee may reclaim its mooring upon thirty (30) days prior written notice to City of its intent to return the Assigned Vessel to the mooring. A "Deemed Vacant Mooring" shall be defined as a mooring upon which: a. An Assigned Vessel has not been attached for thirty (30) consecutive days or more; or b. A vessel, other than an Assigned Vessel, has been attached for thirty (30) days or more; or C. Required documentation for an Assigned Vessel has not been provided for a transfer request pursuant to Section E above. 8 Draft - April 27, 2009 2. Noticed Vacant Moorings: City may rent out Noticed Vacant Moorings at its own discretion for any period of time, for either long or short term rentals, up to the reoccupation date on Permit Holder's written notice, or the twenty-four (24) hour written notice per subsection (b) below. If the mooring continues to be vacant for thirty (30) days past the reoccupation date indicated on Permit Holder's notice, and there is no further written notice from Permit Holder, the mooring shall become a Deemed Vacant Mooring. a. Permittee may provide written notice to City of its intent to vacate its mooring for fifteen (15) days or more. These moorings shall be "Noticed Vacant Moorings." Written notice shall include the date the Permittee intends to vacate his/her mooring, and the date he/she intends to reoccupy the mooring with the Assigned Vessel. b. If Permittee provides notice, the Permittee may reclaim his/her mooring on the reoccupation date indicated in his/her written notice, or, if the Permit Holder returns prior to or after the reoccupation date, upon twenty-four (24) hours written notice to the City. G. Procedures for Mooring Rental. Any person wishing to rent a mooring must enter into a written mooring rental agreement with the Harbor Resources Department that includes the following: 1. A written representation of the current gross vessel weight which shall be satisfactory to the Harbor Resources Manager. 2. An agreement to be responsible for any damage to mooring equipment, to defend and indemnify the City of Newport Beach and the Permittee against any claims or losses arising out of, or related to the mooring rental, and that requires the renter to provide proof of liability and marine pollution insurance, registration or other proof of ownership, and an equipment damage deposit, all to the satisfaction of the Harbor Resources Manager. 3. The repair of any damage to the mooring equipment shall be paid by the mooring renter. 4. Renters shall provide approved mooring lines which shall be removed at the end of the rental period. 5. A mooring rental agreement is renewable based on availability. Upon return of the Assigned Vessel to the mooring, Harbor 9 Draft - April 27, 2009 Resources Department will attempt to reassign the renter to another mooring. Renters have no right of renewal or substitute moorings upon return of the Assigned Vessel, or upon termination of a mooring rental agreement for any reason. Renters accept an indefinite term at their own risk. 6. The rental fee will be based on a rate established by the Newport Beach City Council and delineated in the Master Fee Schedule Resolution. 7. Live-aboards are not permitted on long term mooring rentals. Live- aboards may be temporarily permitted on short-term rentals pending vessel inspection and subsequent re-inspection per each short-term rental renewal. 8. Short term rental renewals are not guaranteed and may be subject to availability. 9. Mooring rentals that are available for thirty (30) days or more shall be first offered to persons on the Interest List, as defined below, as a priority. Non-acceptance of such mooring rentals shall not cause such persons to lose their position on the Interest List. 10. Mooring rentals that are available for less than a thirty (30) day period shall be offered to the public on a first-come, first-serve basis. 11. A mooring may be loaned free of rent by the permittee to a vessel other than the Assigned vessel for no more than thirty (30) consecutive days provided that: 1) The Permittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring; 2) The Permittee has not so loaned the mooring for more than sixty (60) days in the calendar year that precedes the commencement of the current mooring loan; and 3) The vessel owner requesting a loan has not previously been the recipient of loans for more than ninety (90) days in the previous twelve (12) months. H. Mooring Interest List 1. The Mooring Interest List ("Interest List") is the list or lists of natural persons as of the date of the adoption of this ordinance, who wish to obtain a mooring permit as permits revert back to the City or who wish to rent a mooring on a long term basis from the City. (This needs some guidance from City Attorney.) On and after the effective date of this Ordinance, the Interest List(s) shall be 10 Draft - April 27, 2009 maintained for natural persons interested in securing a mooring permit, or renting a Deemed Vacant, or a Noticed Vacant Mooring. 2. Any person wishing to be added to the Interest List must do so on a written application with a fee to be established by resolution of the City Council. Any person may be removed from the Interest List by producing a written signed notice to the Harbor Resources Manager at any time, requesting to be removed from the Interest List. 3. Each even numbered calendar year, the City shall send one notice to all persons on the Interest List requesting confirmation of continued interest and/or updating of contact information. If there is no response to the thirty (30) day notice along with payment of the fee referenced in 1 (4) below, then the person shall be removed from the Interest List. 4. Each person on the Interest List is responsible to keep the City informed of any changes to mailing address or other contact information and must pay a fee for the administrative costs to maintain the Interest List to be established by resolution of the City Council. Nonpayment of such fee shall cause the person to be removed from the Interest List. 5. Persons will be notified of revoked, surrendered or abandoned moorings. 6. If no person on the Interest List accepts a mooring permit according to 17.60.040(H) the Harbor Resources Department may auction the mooring and issue a permit for the mooring to the highest qualifying sealed bid. I. Mooring Permit Transfer Charge. The City shall charge the Permittee for the right to transfer a Permit under section E above in an amount equal to a percentage of the annual permit fee as determined by the Master Fee Schedule. A mooring permit transfer charge shall not be required if: 1. The transfer is from the Permittee to the same Permittee as trustor of an inter vivos trust, living trust or other similar estate planning arrangement; or 2. The transfer is made under Section 17.60.040.E.7-8. J. Surrendered Mooring Equipment. If the Permittee sells transfers or otherwise no longer owns the Assigned Vessel and does not intend to apply for, or does not receive approval to transfer the Permit to another, 11 Draft - April 27, 2009 the Permittee may provide written notice to the Harbor Resources Department of his or her intent to surrender the Permit, otherwise the provisions of Section F regarding a vacant mooring shall apply. Once a Permit is surrendered, the Permittee shall remove the Assigned Vessel and/or the mooring equipment thirty (30) days after written notice of surrender of the Permit, or, upon failure to remove the mooring equipment, title shall vest in the City. K. Revocation or Surrender of Permit. 1. Grounds for Revocation. A Mooring Permit may be revoked upon any of the grounds set forth in Section 17.70.020 or for any of the following: a. The moored vessel, or the mooring equipment has been determined to violate the applicable Mooring Regulations in section 17.25.020, and the owner or renter has not made the necessary corrections or repairs within the time required; b. The mooring Permittee has failed or refused to allow an inspection of the vessel to determine if it is seaworthy and operable, a public nuisance or in compliance with applicable marine sanitation device requirements. C. Living aboard a vessel assigned to a mooring without a Live- aboard Permit unless otherwise noted in Section 17.60.040(G). 2. Notice and Hearing. In the event the Harbor Resources Manager determines there are grounds to revoke a permit, the Harbor Resources Manager shall proceed in the manner described by Section 17.70.020. 3. Upon revocation, it shall be the duty of the owner of the mooring to immediately remove the mooring equipment and any moored vessel. If not removed within thirty (30) days of revocation of the Permit, the mooring equipment shall vest in the City and may be auctioned by the City to another person or may be removed by the Harbor Resources Manager and the cost of mooring removal shall be paid by the mooring Permittee. Any moored vessel or equipment not removed within 30 days may be impounded by the City and disposed of in the manner provided by law. City incurred costs of removal of mooring equipment or any vessel moored thereto may be charged against the Permittee and collected in any court of competent jurisdiction or recovered by the City from the proceeds 12 Draft - April 27, 2009 of sale of the mooring or equipment. 4. During any revocation proceeding under this Section L, if the mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager. SECTION 5: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 7: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2009, and adopted on the_day of , 2009, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR ATTEST: CITY CLERK 13 wta�-� 20q�- Comparison of Actual Mooring Fees Charged to CPI Adjusted - by Patricia Newton Annual Mooring Rate OverlUnder Over/Under CPI- U Adjust Per over/Under Year LA Riv& Rate of per Foot CPI only Charges Charge for 40 Charge for 50 Oc Inflation Charged ft Mooring ft Mooring 1976 56.9 $6.00 1977 60.8 6.85% $6.00 $6.41 -$0.41 -$16 -$21 1978 65.31 7.40% $6.00 1 $6.89 -$0.89 -$35 -$44 1979 72.3 10.72% $6.00 $7.62 -$1.62 -$65 -$81 1980 83.7 15.77% $6.00 $8.83 -$2.83 -$113 -$141 1981 91.9 9.80% $10.00 $9.69 $0.31 $12 $15 1982 97.3 5.88% .$10.00 $10.26 -$0.26 -$10 -$13 1983 99.1 1.85% $10.00 $10.45 -$0.45 -$18 -$22 1984 103.6 4.54% $10.00 $10.92 -$0.92 -$37 -$46 1985 108.41 4.63% $10.00 1 $11.43 -$1.43 457 -$72 1986 111.9 3.23% $10.00 $11.80 -$1.80 -$72 -$90 1987 116.7 4.29% $10.00 $12.31 -$2.31 -$92 -$115 1988 122.1 4.63% $10.00 $12.88 -$2.88 -$115 -$144 1989 128.3 5.08% $15.00 $13.53 $1.47 $59 $74 1990 135.9 5.92% $15.00 $1433 $0.67 $27 $33 1991 141.4 4.05% $15.00 $14.91 $0.09 $4 $4 1992 146,51 3.61% $15.00 $15.45 -$0.45 -$18 -$22 1993 150.3 2.59% $15.00 $15.85 -$0.85 -$34 -$42 1994 152.3 1.33% $15.00 $16.06 -$1.06 -$42 -$53 1995 154.6 1.51% $15.00 $16.30 -$1.30 -$52 -$65 1996 157.5 1.88% $20.00 $16.61 $3.39 $136 $170 1997 160.0 1.59% $20.00 $16.87 $3.13 $125 $156 1998 162.3 1.44% $20.00 $17.11 $2.89 $115 $144 1999 166.11 2.34% $20.00 $17.51 $2.49 $99 $124 2000 171.6 3.31% $20.00 $18.09 $1.91 $76 $95 2001 177.3 3.32% $20.00 $18.70 $1.30 $52 $65 2002 182.2 2.76% $20.00 $19.21 $0.79 $31 $39 2003 187.0 2.63% $20.00 $19.72 $0.28 $11 $14 2004 193.2 3.32% $20.00 $20.37 -$0.37 -$15 -$19 2005 201.8 4.45% $20.00 $21.28 -$1.28 -$51 -$64 2006 210.4 4.26% $20.00 $22.19 -$2.19 -$87 -$109 2007 217.338 3.30% $20.00 $22.92 -$2.92 -$117 -$146 2008 225.008 3.53% $20.00 $23.73 -$3.73 -$149 -$186 2009 223.219 -0.80% $20.00 $23.54 -$3.54 -$142 -$177 2010 225.894 1.20% $20.00 $23.82 -$3.82 -$153 -$191 2011 231.928 2.67% $26.52 $24.46 $2.06 $8 $103 2012 236.648 2.04% $30.70 $24.95 $5.75 $230 $287 2013 239.207 1.08% $38.73 $25.22 $13.51 $540 $675 2014 242.434 1.35% $47.64 $25.56 $22.08 $883 $1,104 Annual 2015 f/ 239.5 -1.19% $55.43 $25.26 $30.17 $1,207 $1,509 Overcharge Actual Proposed 40150 ft Cumulative Over Charges(after deducting any under charges) $2,199 $2,749 Consumer Price Index-All Urban Consumers Series Id:CUURA421SA0,CUUSA421SA0 Original Data Value Not Seasonally Adjusted Area: Los Angeles-Riverside-Orange County,CA Item: All items Base 1982-84=100 Years: 1976 to 2015 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALFI HALF2 1976 55.7 55.4 55.5 55.5 56.3 56.5 57.1 57.4 57.8 58 58.3 58.5 56.9 1977 59.2 59.7 59.8 60.2 60.4 60.8 61.1 61.1 61.5 61.5 61.9 62.4 60.8 1978 62.8 63.1 63.4 64.2 64.8 65.5 65.8 66 66.8 66.9 67.1 66.7 65.3 1979 67.6 68.3 69 70.3 71.4 72.1 72.7 73.6 74.7 75.1 75.9 77.2 72.3 1980 78.7 80.4 81.7 82.8 84.3 84.7 84.2 83.7 84.5 85.5 86.5 87.6 83.7 1981 87.8 88.5 89.1 89.9 90.5 90.7 92.1 93 94.5 95.2 95.3 95.5 91.9 1982 96.7 96.6 96.9 97 97.2 98.2 97.9 97.9 97.5 98 97.6 96.6 97.3 1983 96.7 97.1 97.2 98 98.8 99.4 99.7 99.9 100.3 100.5 100.4 100.8 99.1 1984 101.2 101.6 101.8 102.5 103.4 103.4 103.5 104.5 105 105.5 105.5 105.3 103.6 102.3 104.9 1985 105.9 106.3 106.5 106.9 108 108.1 108.8 109.6 109.6 110.4 110 110.4 108.4 107 109.8 1986 110.6 110.5 111.1 110.6 111.5 112.1 112 112 113.3 113.8 113 112.7 111.9 111.1 112.8 1987 113.4 114.7 115.5 116 116.8 116.5 116.5 117.3 118 118.6 118.2 118.5 116.7 115.5 117.9 1988 118.9 119.7 120.6 121.1 122 122 122.1 122.6 123.4 124 124.1 124.2 122.1 120.7 123.4 1989 124.6 125.5 126.2 127.2 128.3 128.7 129 128.9 130.1 130 130 130.6 128.3 126.8 129.8 1990 132.1 133.6 134.5 134.2 134.6 135 135.6 136.3 137.7 138.7 138.9 139.2 135.9 134 137.7 1991 140 139.9 139.7 140.7 140.8 140.8 141.5 141.7 142.6 142.9 143.5 143.1 141.4 140.3 142.6 1992 144.3 144.9 145.5 145.8 146 146.2 146.7 146.9 147.4 148.4 148.2 148.2 146.5 145.5 147.6 1993 149.2 150 149.8 149.9 150.1 149.7 149.8 149.9 150.2 150.9 151.6 151.9 150.3 149.8 150.7 1994 152.2 152.2 152.5 152 151.4 151.3 151.7 152 152.7 153.4 152.9 153.4 152.3 151.9 152.7 1995 154.3 154.5 154.6 154.7 155.1 154.8 154.5 154.4 154.6 155.2 154.4 154.6 154.6 154.7 154.6 1996 155.7 156.2 157.3 157.7 157.5 156.7 157.6 157.3 158.2 158.8 158.4 158.3 157.5 156.9 158.1 1997 159.1 159.2 159.8 159.9 159.5 159.4 159.5 159.7 160.5 161.1 160.7 161.2 160 159.5 160.5 1998 161 161.1 161.4 161.8 162.3 162.2 162.1 162.6 162.6 163.2 163.4 163.5 162.3 161.6 162.9 1999 164.2 164.6 165 166.6 166.2 165.4 165.8 166.3 167.2 167.2 167.1 167.3 166.1 165.3 166.8 2000 167.9 169.3 170.7 170.6 171.1 171 171.7 172.2 173.3 173.8 173.5 173.5 171.6 170.1 173 2001 174.2 175.4 176.2 176.6 177.5 178.9 178.3 178.4 178.8 178.3 178.1 177.1 177.3 176.5 178.2 2002 178.9 180.1 181.1 182.2 182.6 181.9 182.2 183 183.4 183.7 184 183.7 182.2 181.1 183.3 2003 185.2 186.5 188.2 187.6 186.4 186.3 186.3 186.9 188.2 187.8 187.1 187 187 186.7 187.2 2004 188.5 190.1 191.5 191.9 193.3 193.7 193.4 193.1 194.5 196.3 196.9 195.2 193.2 191.5 194.9 2005 195.4 197.4 199.2 201.1 201.5 200.7 201.4 203.1 205.8 206.9 205.6 203.9 201.8 199.2 204.5 2006 206 207.5 208.5 210.5 212.4 211.1 211.4 211.9 212.9 211.4 211.1 210.6 210.4 209.3 211.6 2007 212.584 214.76 216.5 217.845 218.596 217.273 217.454 217.33 217.697 218.696 219.943 219.373 217.338 216.26 218.416 2008 220.918 221.431 223.606 224.625 226.651 229.033 229.886 228.484 227.449 226.159 222.229 219.62 225.008 224.377 225.638 20119 220.719 221.439 221.376 221.693 222.522 223.906 224.01 224.507 225.226 225.264 224.317 223.643 223.219 221.943 224.495 2010 224.61 224.62 225.483 225.916 226.438 225.877 225.991 226.373 226.048 226.794 225.941 226.639 225.894 225.491 226.298 2011 228.652 229.729 232.241 233.319 233.367 232.328 231.303 231.833 233.022 233.049 232.731 231.567 231.928 231.606 232.251 2012 233.441 234.537 236.941 236.866 237.032 236.025 235.776 237.222 238.104 240.111 237.675 236.042 236.648 235.807 237.488 2013 238.015 239.753 239.995 239.043 239.346 239.223 238.92 239.219 239.611 239.94 238.677 238.742 239.207 239.229 239.185 2014 239.857 241.059 242.491 242.437 243.362 243.528 243.727 243.556 243.623 243.341 241.753 240.475 242.434 242.122 242.746 2015 239.724 This data was taken from the US Department of Labor as advised by