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HomeMy WebLinkAbout10 - Water Taxi Exploratory CommitteeCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 10 February 9, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh M. De Santis, Economic Development Administrator 949- 644 -3207, Idesantis(a)newportbeachca.gov Harbor Resources Division Chris Miller, Harbor Resources Manager 949 - 644 -3043, cmiller @newportbeachca.gov SUBJECT: Recommendations from Water Taxi Exploratory Committee RECOMMENDATION: Direct staff to include questions exploring the demand and support for a water taxi system in the upcoming surveys of residents and businesses. DISCUSSION: Background: Goal 4 of the Strategic Plan for Fiscal and Economic Sustainability is, "The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor." Objective 4.5 for implementing the goal states, "The City will invite proposals for the implementation of a privately owned and operated summer water transportation service, with funding supplemented by grants, private contributions and public monies. Research should be conducted into the transferability of existing models in Los Angeles County and other Areas." The City Council established the Water Taxi Exploratory Committee in May 12, 2009, with a term of one year. The Committee began work immediately and on November 24, 2009, presented its final report to the City Council at a Study Session. {The full report is available on the City website under City Government, Agendas and Minutes, 2009, November 24, 2009 Recommendations from Water Taxi Exploratory Committee February 9, 2010 Page 2 Study Session; click on staff report) The report concluded that a Water Taxi in Newport Harbor is conceptually feasible, and recommended that: 1. City Council reviews and discusses this report in a study session /presentation. 2. If the City Council approves the concept, refer to Harbor Commission, Economic Development Committee for input within 30 days. 3. Direct staff to prepare a draft RFP with input, support from the Water Taxi Committee. 4. Direct staff to provide Council with recommendations on implementation, RFP, schedule, actions to provide City facilities, sites and implementation in 60 days. 5. Designate a 30 -day RFP submittals response period. 6. Evaluate proposals, select operator, negotiate agreement, implement in 60 days. 7. The Committee recognizes that these Recommendations /Next Steps may not be able to be accomplished within a time frame which would enable the water taxi system to be in place by Summer 2010. It recommends that the City continue to pursue implementation on that schedule for at least a Basic "test" System by Summer 2010, or by Summer 2011, if the 2010 date isn't achievable." The City Council directed that the Committee make presentations to the Economic Development Committee and the Harbor Commission to gather comments from those groups to assist the Council when the report returned for action. On December 16, 2009, the Water Taxi Exploratory Committee report was presented to the EDC. Following a question and answer period, the following motion was unanimously approved: "That the EDC support the Water Taxi Committee's recommendation to the City Council that an RFP be prepared and distributed to test the private sector marketability to provide water taxi service." The motion also encouraged that a survey be done to gauge demand /support. The EDC was very supportive of the Water Taxi Committee's concept of an RFP that does not include a cash subsidy from the City. Recommendations from Water Taxi Exploratory Committee February 9, 2010 Page 3 On January 13, 2010, the Committee report was presented to the Harbor Commission. Following discussion, that group moved to receive and file the report. Their hesitancy to recommend an RFP was based on the Water Taxi Committee's determination that a cash subsidy would not be provided - an incentive that some Commissioners thought was imperative to a successful RFP process. Analysis: Although the recommendation of the Water Taxi Exploratory Committee is to circulate an RFP now so that service could begin in Summer 2010, there was not overwhelming support for moving this quickly from the EDC and the Harbor Commission. EDC recommended a survey to gauge demand /support; and the Harbor Commission had a different view of the need for City subsidy than the Committee. Even if the City Council were interested in starting service this summer, it would be very challenging to have everything needed in place by then. Staff would recommend that the Council decide on whether to offer City financial support before an RFP is drafted. With so many questions on the City's revenue projections and budget outlook for next fiscal year, the Council may not wish to make a decision on water taxi support immediately. Staff time would be needed to draft and circulate an RFP, evaluate responses and formulate a recommendation to the City Council, and prepare necessary agreements. In addition, logistical issues would need to be resolved, including an amendment to the Municipal Code to allow commercial vessels to use public docks and a determination of the need to make public docks accessible to disabled persons if used for a water taxi service. The work to establish a water taxi service for Summer 2010 would take Economic Development and Harbor Resources staff time away from other priorities of the City Council, including the implementation of parking management recommendations, support for Business Improvement Districts, vision plan for Balboa Village, dredging of the Rhine Channel and Lower Newport Bay, and resolution of eelgrass issues. Staff believes that more careful consideration should be given to the potential public support for a water taxi service and the need for a City subsidy, before taking steps to initiate a new service. The City is about to conduct a survey of residents and businesses, and support for a water taxi service is one of the areas that could be included in the surveys. If there is strong support, the City Council can direct staff to begin preparations for Summer 2011 with enough time to carefully consider all of the details. Recommendations from Water Taxi Exploratory Committee February 9, 2010 Page 4 Alternatives: 1. Direct staff to prepare and circulate a Request for Proposals (RFP) for Water Taxi Service in Newport Harbor to begin summer 2010. 2. Receive and file the Water Taxi Exploratory Committee Report. Prepared by: eig . De Santis, Economic Development Administrator Submitted by: Sharon Z. Woo Assistant City a ager Prepared by: h,, Chris Miller, Harbor Resources Manager