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HomeMy WebLinkAboutSS5 - Mooring IssuesAgenda Item No. SS5 November 9, 2010 Harbor Charges: Moorings Proposal November 9,20 10 Study Session Newport Beach City Council Ad Hoc Committee Workplan Part Review /modify /adopt MGT proposal for fees based on cost of service (adoption Nov 9, 20 10) BalboaYacht Basin slips, apartments, garages — set to market, implement slip changes over 3 periods (first increase Jan 201 1). Moorings — onshore and offshore (first increase effective for 2011). Analyze tidelands commercial categories with State Lands Commission. Oversee appraisal at Lido MarinaVillage's tidelands below commercial docks. Consider protected Harbor Fund for any incremental increase in revenue — dedicate for dredging, harbor amenities and harbor services. Committee Workplan — cont'd Part II Implement LMV changes via lease. Develop /approve long -term capital plan for harbor amenities and harbor services. Part III Oversee appraisal of Commercial Piers and other commercial harbor uses to "percentage of gross" that are now under a per square foot rate (when analysis in). Implement long -term capital plan for harbor amenities and harbor services. Review actions to date and determine whether any need revisions to maintain equity and fairness. Not under Committee purview Making a determination (re: pricing or policy) regarding residential pier fees and rentals of residential piers for commercial purposes. However, the Committee has asked the City Attorney to review the legal issues associated with residential piers. A :lci �.�■ :x!`.`12 owe :Jai \V /ALI 0 = § ql =• 151:1■[NJ:40IJ2: Charges for the Private Use of Public Property (current charges) Description Amount per Year Non - Commercial Pier Use - Renewal $ 100 Commercial Pier -Over City Tidelands $0.36/SF Commercial Pier - Not Over City Tidelands $ 26.70 Onshore Moorings $10 /LF Offshore Moorings $20 /LF Key Principles - Moorings Outcome should: Be fair, reasonable, and legally defensible. Be phased in over time to minimize economic disruption. Moorings should be a more affordable alternative for boat ownership and harbor access than slips. Be responsive to market conditions. Result in a charge that is annually updated. Moorings ® Proposal: Offshore moorings should be set at 14% of an average of slip rates in the harbor (they are now at about 5 %). • Onshore moorings • Increases should be "caught up" should • Transfers: should be half of that. implemented over five periods. When catch up to 14% of slip rates in 2015. Allow current permit holders one transfer to another person (not a family member) between now and 2015. If a person purchases a boat on a mooring, they can have up to six months to stay on that mooring until they must relocate (similar to Balboa Yacht Basin rules). No restrictions on transfers within immediate family if permit holder is deceased. Process Process: Determine an average rental rate of slip sizes in eight moderate- to low- priced NH commercial marinas. Index prices should be updated for Nov -Dec 2010. Get to 14% by 2015 with five adjustments (first increase 2011, next one 2012, etc). Monitor vacancies, transfer prices, wait list during those five years to ensure that pricing is appropriate. Example — Assume a 40' Mooring Proposed Mooring Rate Changes Target Ratio Current Rate (LF /Mo) NH Marina Index Rate (per LF /Mo) Current Ratio in NH 2011 rate (Lf /MO) 2012 rate (LF /MO) 2013 rate (LF /Mo) 2014 rate (Lf /Mo) 2015 rate (LF /MO) Est5lip Rates in 2x15 (LF /Mo) Method: 14% of SI i p Rates in an Average of NH Marinas, get there over 14% $ 1.67 $ 33.01 5.06% $ 2.31 $ 2.97 $ 3.66 $ 4.38 $ 5.10 $ 36.45 years using % increases as shown. %mooring to slip < 6.9% 8.7% 10.55VO 12.3% 14.0% current mooring price per month= $ 66.80 Totolpermo'= $ 92.38 $ 118.95 $ 146.55 $ 175.21 $ 204.10 $ 25.58 $ 26.57 $ 27.60 $ 28.66 $ 28.88 Dollar Increase per mot= 'All assume a 40' slip and 40' mooring. 'Total per month and dollar increase per month assumes a 2% per year increase in the $33.01 /LF /Mo marina index rate. To keep up with the market, proposal would not use dollar value, butthe % increase in italics. From 5% to 14% ... $20,000.00 $18,000.00 $16,000.00 $14,000.00 y $12,000.00 m m $10,000.00 N O U $8,000.00 $6,000.00 $4,000.00 $2,000.00 Moorings and Berths in Newport Harbor 2010 2011 2012 2013 2014 2015 Assumes 2% inflation for berthing rates — Berths — Moorings The real cost of moorings today They are a "more affordable" alternative (5% of slip rates) but: Are they really affordable? Once you're in, yes. Barrier to entry is high: Minimal to no movement of Wait List; Pricing on a 12 -month permit to an offshore mooring (surveyed June 2010, Craig's List): Ranged from $32,500 to $60,000 Average = $45,167 Average of 40' moorings = $33,875 Proposed rate is still 14% of slip rates. Using a 5% cap rate, the annual cost to the boater: Today = $2,493.75 per year ($800 plus $33,875 x 5 %). Proposal at 2015 = $2,448.00 per year (40 feet x $5.10 /ft x 12 mos). Other Suggestions Adjust by Consumer Price Index since 1996 (LA- Riv -OC) 40' mooring would go to $ /, 1 13.77 /year Comparing San Diego and Newport: NMA's concept of proportionality. Uses San Diego as a comparison (population, # of berths, # of moorings) to make assumptions about demand in the region. "having more slips available would make the moorings less desirable..." In OtherAreas... • Mission Bay Mooring rates are — 14% of slip rates Driscoll and Hyatt are marina comparisons. Mooring permit holders own /maintain tackle • Monterey Bay Mooring rates appear to be — 14.5% of slip rates Outer Harbor Moorings and Breakwater Cove are comparisons. Privately -held tackle in the Outer Harbor • Pillar Point Mooring rates are about — 15% of slip rates. Mooring district owns tackle. • San Diego Mooring rates are — 18.5% of slip rates. SD Mooring Co owns mooring tackle. It would be - 17% if adjusted to reflect private ownership of tackle. • Morro Bay Mooring rates are about — 31.7% of slip rates. Proposed NH Marina Index (sampled June 20 10) Average of all 40' slips = $33.01 /LF /mo Newport Beach Marinas Lido Lido Bayside Bayshore Bayside Dunes Harbor Non BYB Slip Length BY B Marina Yacht Swales Village Marina Marina Marina Marina Average Village Anchor. Marina Price perfoot per month 20 $ 23.80 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 21.16 22 $ 23.85 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 21.17 25 $ 16.00 $ 25.45 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 21.49 28 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 20.50 29 $ 17.38 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 20.50 30 $ 18.60 $ 31.65 $ 29.00 $ 24.00 $ 35.00 $ 18.75 $ 17.00 $ 25.00 $ 25.77 32 $ 18.00 $ 31.00 $ 29.00 $ 24.00 $ 35.00 $ 20.75 $ 25.00 $ 27.46 36 $ 18.00 $ 33.22 $ 31.25 $ 24.00 $ 35.00 $ 24.00 $ 26.00 $ 28.91 40 $ 19.00 $ 32.94 $ 39.62 $ 39.50 $ 37.50 $ 38.00 $ 26.50 $ 18.00 $ 32.00 $ 33.01 45 $ 19.00 $ 41.84 $ 39.50 $ 37.50 $ 38.00 $ 26.50 $ 20.00 $ 32.00 $ 33.62 46 $ 19.00 $ 42.00 $ 37.50 $ 38.00 $ 26.50 $ 35.00 $ 35.80 50 $ 23.00 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 35.00 $ 37.35 54 $ 25.56 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 37.94 55 $ 25.09 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 37.94 60 $ 23.00 $ 50.34 $ 49.07 $ 42.00 $ 45.00 $ 45.00 $ 29.00 $ 43.40 Average of all 40' slips = $33.01 /LF /mo NH Marina Index — 8 Marina Locations HN Balboa he r. HN Balboa he 'I :KVA 2 L 15 1 a Harbor One -Time Costs One -Time Capital Projects (assume 4 -10 year payment plan) Total Project Cost Rhine Channel Dredging & POLB Disposal $ 4,000,000 25% $ 1,000,000 Lower Bay Dredging -- One Time' $ 23,000,000 10% V$ 2,300,000 West Newport Channels Dredging $ 5,000,000 25% $ 1,250,000 CEQA and Permitting for Rhine and LNB $ 500,000 25% $ 125,000 Marina Park Marina $ 9,000,000 25% $ 2,250,000 Subtotal One -Time Capital Projects $ 41,500,000.00 $ 5,925,000 ' Citywill actively seek additional federal contributions within Fed budget. Onlyabout$2 million assured now. Harbor Ongoing Costs Ongoing Maintenance - Annual Costs -- Lower Bay Dredging -- Annuity Contribution $ 1,000,000 -- Upper Bay Dredging -- Annuity Contribution $ 1,500,000 -- Public Pier Maintenance (Bay Piers) $ 190,000 -- Mooring Administration Fee $ 280,000 -- Regional General Permit 54 Renewal, Testing $ 150,000 -- Eelgrass Mapping & Maintenance $ 75,000 -- Harbor Trash Removal $ 20,000 --Water Quality Protection (TMDLs, NPDES, more) $ 350,000 -- Upper Bay Management Assistance (includes BBSC) $ 100,000 -- Guest Amenity Improvements $ 50,000 -- Code Enforcement in Harbor $ 50,000 -- Bay Beach Sand Replenishment $ 75,000 Subtotal Ongoing Maintenance $ 3,840,000 Total Harbor Expenditures (est) a subset of Tidelands Expenditures Tidelands Harbor Costs (estimated) Total Harbor Costs (est) $ 11,298,248 $ 11,385,713 2011 $ 11,565,925 2012 1 $ 7,128,419 2013 Cumulative Harbor Costs (est) 2014 $ 22,683,960 2015 2016 $ 52,758,557 2017 Harbor Resources (Sal /Ben)' Z $ 533,248 $ 543,913 $ 554,791 $ 565,887 $ 577,205 $ 588,749 $ 600,524 One -Time Harbor Costs $ 6,925,000 �$ 6,925,000 �$ 6,925,000 �$ 6,925,000 $ 2,300,000 $ 2,300,000 $ 2,300,000 Ongoing Harbor Maintenance Costs $ 3,840,000 $ 3,916,800 $ 3,995,136 $ 4,075,039 $ 4,156,539 $ 4,239,670 $ 4,324,464 Total Harbor Costs (est) $ 11,298,248 $ 11,385,713 $ 11,474,927 $ 11,565,925 $ 7,033,744 1 $ 7,128,419 $ 7,224,987 Cumulative Harbor Costs (est) $ 22,683,960 $ 34,158,887 $ 45,724,813 $ 52,758,557 $ 59,886,976 $ 67,111,963 ' Directcosts only. Does not include a ny other City overhead - City Attorney, City Manager, Admin Services, etc. Assumes 2% inflation on ongoing costs Total Harbor Revenues (e5t) a subset of Tidelands Revenues Tidelands Harbor Revenues (projected - assumes no change except 2% inflation BYB - Garages $ 35,000 2011 1 2012 1 2013 1 2014 37,885 2015 1 38,643 2016 1 39,416 2017 Onshore and Offshore Moorings $ 700,000 $ 714,000 $ 728,280 $ 742,846 $ 757,703 $ 772,857 $ 788,314 Residential Pier Permits $ 30,000 $ 30,600 $ 31,212 $ 31,836 $ 32,473 $ 33,122 $ 33,785 Commercial Pier Permits $ 566,000 $ 577,320 $ 588,866 $ 600,644 $ 612,657 $ 624,910 $ 637,408 Interest $ 75,000 $ 76,500 $ 78,030 $ 79,591 $ 81,182 $ 82,806 $ 84,462 American Legion $ 138,120 $ 140,882 $ 143,700 $ 146,574 $ 149,506 $ 152,496 $ 155,546 BYB - Slips $ 650,000 $ 663,000 $ 676,260 $ 689,785 $ 703,581 $ 717,653 $ 732,006 BYB - Garages $ 35,000 $ 35,700 $ 36,414 $ 37,142 $ 37,885 $ 38,643 $ 39,416 Balboa Bay Club- Marina Only $ 689,000 $ 702,780 $ 716,836 $ 731,172 $ 745,796 $ 760,712 $ 775,926 Balboa Island Ferry $ 75,319 $ 76,825 $ 78,362 $ 79,929 $ 81,528 $ 83,158 $ 84,821 Galley Cafe $ 20,511 $ 20,921 $ 21,340 $ 21,766 $ 22,202 $ 22,646 $ 23,099 Basin Marine Shipyard $ 70,000 $ 71,400 $ 72,828 $ 74,285 $ 75,770 $ 77,286 $ 78,831 OC Dock Lease $ 47,755 $ 48,710 $ 49,684 $ 50,678 $ 51,692 $ 52,725 $ 53,780 Subtotal Tidelands Harbor Water Related Revenues r $ 3,096,705 1 $ 3,158,639 1 $ 3,221,812 1 $ 3,286,248 1 $ 3,351,973 1 $ 3,419,013 1 $ 3,487,393 Water - Adjacent Activity Revenues Beacon Bay residences $ 928,177 $ 946,741 $ 965,675 $ 984,989 $ 1,004,689 $ 1,024,782 $ 1,045,278 BYB - Apartments $ 27,000 $ 27,540 $ 28,091 $ 28,653 $ 29,226 $ 29,810 $ 30,406 Balboa Bay Club - AllNon- Marina $ 2,401,000 $ 2,449,020 $ 2,498,000 $ 2,547,960 $ 2,598,920 $ 2,650,898 $ 2,703,916 Subtotal Tidelands Harbor Water- Adjacent $ 3,356,177 $ 3,423,301 $ 3,491,767 $ 3,561,602 $ 3,632,834 $ 3,705,491 $ 3,779,600 Total Tidelands Harbor - Related Revenues $ 6,452,882 $ 6,581,940 $ 6,713,578 $ 6,847,850 $ 6,984,807 $ 7,124,503 $ 7,266,993 Net Surplus (Deficit) — Harbor Revenues and Expenditures (est) Total Tidelands Harbor Related Revenues 1 $ 6,452,882 1 $ 6,581,940 1 $ 6,713,578 1 $ 6,847,850 1 $ 6,984,807 1 $ 7,124,503 $ 7,266,993 Surplus (Deficit) Water Related Rev - Exp 2011 2012 2013 2014 $ (3,681,771) 2015 $ (3,737,594) 2016 $ (8,201,543) 2017 Total Harbor Costs (est) $ 11,298,248 $ 11,385,713 $ 11,474,927 $ 11,565,925 $ 7,033,744 $ 7,128,419 $ 7,224,987 Cumulative Harbor Costs (est) $ 22,683,960 $ 34,158,887 $ 45,724,813 $ 52,758,557 $ 59,886,976 $ 67,111,963 ridelands Harbor Revenues (estimated - assumes nochange except 2011 2% inflation) 2012 1 2013 2014 2015 2016 2017 Subtotal Tidelands Harbor Water - Related Revenues $ 3,096,705 $ 3,158,639 1 $ 3,221,812 $ 3,286,248 $ 3,351,973 $ 3,419,013 $ 3,487,393 Subtotal Tidelands Harbor Water- Adjacent $ 3,356,177 $ 3,423,301 $ 3,491,767 $ 3,561,602 $ 3,632,834 $ 3,705,491 $ 3,779,600 Total Tidelands Harbor Related Revenues 1 $ 6,452,882 1 $ 6,581,940 1 $ 6,713,578 1 $ 6,847,850 1 $ 6,984,807 1 $ 7,124,503 $ 7,266,993 Surplus (Deficit) Water Related Rev - Exp 1 $ (8,201,543) $ (8,227,074) $ (8,253,115) $ (8,279,677) $ (3,681,771) $ (3,709,406) $ (3,737,594) Cumulative Surplus (Deficit) Water Related $ (8,201,543) $ (16,428,616) $ (24,681,731) $ (32,961,409) $ (36,643,180) $ (40,352,586) $ (44,090,181) Surplus (Deficit) Total Harbor Rev over Expenditures $ (4,845,366) $ (4,803,773) $ (4,761,349) $ (4,718,075) 1 $ (48,937) $ (3,916) $ 42,006 Cumulative Surplus (Deficit) Total Harbor Rev over Exp $ (4,845,366) $ (9,649,139) $(14,410,487) $(19,128,563) $(19,177,500) $(19,181,416) $(19,139,410) Note: Chart only shows harbor - related costs associated with Tidelands Fund. Other costs not included above related to otherTidelands include Police, Fire, Lifeguards, more. Unknown Costs Implementation of TMDLs: Selenium Trash Fecal Coliform Other WQ directives from SWRCB /RWQCB Seawall Deficiencies Public seawalls, private seawalls Sea level change impacts Others TBD October 30. 2010 - . 'r' Mr. Keith D. Curry, Mayor Newport Beach City Council "_0 33(x1 Newport Blvd. Newport Beach, CA 92003 Dear Mayor Curry, H 1 am writing you to express my concerns over the pending decisions affecting the mooring lees and use. From what I have learned, an ad hoc committee under the direction of the harbor commission, is reviewing a proposal to increase the mooring permits sonic 150% over a five year period. I also understand that there has not been an increase for the last fourteen years and recognize that some increase is necessary. In my investigation about charging fees. I believe that a fee should cover the costs to administer the permit and services and not be a revenue source. I also Teamed that the mooring permits generate collectively sonic $700,000 annually for the city. I don't understand the aggressive fee increase that City Manager. Mr. Kiff is seeking in a time when like the city. we are all having to cut back our budgets during this deep recession. I have had a mooring in Newport harbor since 1996 and have paid the city over S1 1.000 dollars. 1 paid lix the maintenance of the mooring every other year ($500 - $800) to a company that does business and pays taxes to the city. I shop in the city ofNewport fitr services and goods that support boating and leisure activity and those businesses pay their fair share of city taxes. Is it the interest of the city to drive out the mooring owners with this hefty increase and stop us from suppokting the cih7 The next issue is the elimination of the "transferability" of the mooring. My research tells me that for over some thirty years, under the provisions of the mooring agreement, the city has permitted mooring owners to transfer their moorings and now wants to do away with it. I decided fourteen years ago to move my boat to a less convenient mooring to save money so i could still egjoy boating in the future (a business decision). It was a costly investment in 1996 to acquire the mooring. 1 cannot imagine the city deciding to eliminate my investment, anymore than the city deciding to not allow me to sell my home. I feel that there are more reasonable ways to handle the fee increase and transferability. I support the fair proposal presented by the Newport Mooring Association to address and resolve the above issues that was rejected by the city manager. I would appreciate your careful consideration on this mailer as it affects one of the city's important resources, the harbor and your position. .' nccrely. en mbatore Terry Trombatcre 262 Cajon Street Laguna Beach, CA 92651 Sss - )I1 -Jo Presentation to City Council Regarding Newport Harbor Mooring Fees and Transferability November 9, 2010 Issues 1. Harbor Mooring Fees 2. Budgetary Analysis 3. Transferability 4. Transferability Document 5. Recommendations Awl and Summary �, s • �• A1,614 J Harbor Mooring Fees • Methodology used for rate increase is arbitrary and not independently, professionally verified • Relative value of moorings versus slips is different in Newport than other harbors due to quantity of moorings compared to slips and supply — demand issues • Very high upland values in Newport Beach distort relative value of tidelands so tying mooring fees to slip costs is unreasonable • City previously set a "market value" in 1996 and using a CPI based adjustment the fully indexed rate would be $29/ft., from the current $20 /ft. Harbor Mooring Fees • Comprehensive revenue plan needs to be developed before any fees are changed — Discriminatory to do it piecemeal • Previously the City promised to look at other fees when they raised mooring fees but never did • Substantial fee increases will drive many on fixed incomes out of the harbor • NB General Plan allows for affordable boat storage — p. 3811 R8.6, "Provide moorings as an important source of low cost public recreational access to the water and harbor." Harbor Mooring Fees Budgetary Analysis • Fee increase is not justified or reasonable — There is no cash flow analysis that includes the proposed fee increase — Ongoing costs should be considered separately from one time capital expenditures — Funds from the Federal Government are not included Harbor Mooring Fees Budgetary Analysis • Sources of revenue not represented in City's analysis — PIT (Possessory Interest Tax) — Unsecured property tax returned to City — Tidelands boat storage contribution — Potential rental income from vacant mooring — NMA cash flow projection shows $2.6 million surplus in 2017 — City is est. at $6 million Harbor Resources (Sal /Ben)' Ongoing Harbor Maintenance Costs2 Total Ongoing Harbor Costs One -Time Harbor Capital Requirements Total Harbor Tidelands Harbor Expenditures (Revised) 2011 2012 2013 2014 2015 2016 2017 $533,248 $543,913 $554,791 $565,887 $577,205 $588,749 $600,524 $3,840,000 $3,916,800 $3,995,136 $4,075,039 $4,156,539 $4,239,670 $4,324,464 $4,373,248 $4,460,713 $4,549,927 $4,640,926 $4,733,744 $4,828,419 $4,924,988 $6,925,000 $6,925,000 $6,925,000 $6,925,000 $2,300,000 $2,300,000 $2,300,000 Costs (est) $11,298,248 $11,385,713 $11,474,927 $11,565,926 $7,033,744 $7,128,419 $7,224,988 Cumulative Harbor Costs (est) $11,298,248 $22,683,961 $34,158,888 $45,724,814 $52,758,558 $59,886,977 $67,111,965 'Direct costs only. Does not include any other City overhead - City Attorney, City Manager, Admin Services, etc. Assumes 2% inflation on ongoing costs Tideland Harbor Revenues- City Proposed Mooring Increases 2011 2012 2013 2014 2015 Onshore and Offshore Moorings $700,000 8% $714,000 8% $728,280 7% $742,846 7% $757,703 7% Proposed Mooring Rate Increase $207,795 2% $425,401 4% $651,519 7% $886,512 9% $1,130,719 11% Residential Pier Permit $30,000 0% $30,600 0% $31,212 0% $31,836 0% $32,473 0% Commercial Pier Permits $566,000 6% $577,320 6% $588,866 6% $600,644 6% $612,657 6% Interest $75,000 1% $76,500 1% $78,030 1% $79,591 1% $81,182 1% American Legion $138,120 2% $140,882 1% $143,700 1% $146,574 1% $149,506 1% BYB - Slips $650,000 7% $663,000 7% $676,260 7% $689,785 7% $703,581 7% BYB - Garages $35,000 0% $35,700 0% $36,414 0% $37,142 0% $37,885 0% Balboa Bay Club - Marina Only $689,000 8% $702,780 7% $716,836 7% $731,172 7% $745,796 7% Balboa Island Ferry $75,319 1% $76,825 1% $78,362 1% $79,929 1% $81,528 1% Galley Cafe $20,511 0% $20,921 0% $21,340 0% $21,766 0% $22,202 0% Basin Marine Shipyard $70,000 1% $71,400 1% $72,828 1% $74,285 1% $75,770 1% OC Dock Lease $47,755 1% $48,710 1% $49,684 1% $50,678 0% $51,692 0%y Subtotal Tidelands Harbor Water - Related Ra Revenues $3,304,500 36% $3,584,040 38% $3,873,331 39% $4,172,760 41% $4,482,693 42% ��►► -0 Water Adjacent Revenue & Other Revenue Sources Water- Adjacent Activity Revenues Beacon Bay residences $928,177 10% $946,741 10% $965,675 30% $984,989 30% $1,004,689 9% BYB - Apartments $27,000 0% $27,540 0% $28,091 0% $28,653 0% $29,226 0% Balboa Bay Club - All Non - Marina $2,401,000 26% $2,449,020 26% $2,498,000 25% $2,547,960 25% $2,598,920 25% Subtotal Tidelands Harbor Water- Adjacent $3,356,177 37% $3,423,301 36% $3,491,767 35% $3,561,602 35% $3,632,834 34% Other Revenue Sources Unsecured Property Tax $800,000 9% $800,000 8% $800,000 8% $800,000 8% $800,000 8% Posessory Interest Tax $700,000 8% $700,000 7% $700,000 7% $700,000 7% $700,000 7% Tidelands Boat Storage - minimum residential $700,000 8% $700,000 7% $700,000 7% $700,000 7% $700,000 7% Monthly Fees - vacant moorings (est. 100 at $8 /day) $ 292,000 3%$ 292,000 3%$ 292,000 3%$ 292,000 3%$ 292,000 3% Total Other Revenue Sources $ 2,492,000 27% $ 2,492,000 $ 2,492,000 $ 2,492,000 $ 2,492,000 Total Tidelands Harbor- Related Revenues $9,152,677100% $9,499,341 100% $9,857,098100% $10,226,362 100% $10,607,526 100% Projected Tidelands Harbor Revenues — Net Surplus/(Deficit) (including City mooring fee increase and 2% inflation) 2011 2012 2013 2014 2015 2016 2017 Subtotal Tidelands Harbor Water - Related Revenues $3,304,500 $3,584,040 $3,873,331 $4,172,760 $4,482,693 $4,606,268 $4,734,011 Subtotal Tidelands Harbor Water- Adjacent $3,356,177 $3,423,301 $3,491,767 $3,561,602 $3,632,834 $3,705,491 $3,779,600 Total Other Revenue Sources $2,492,000 $2,492,000 Total Tidelands Harbor - Related Revenues $9,152,677 $9,499,341 $2,492,000 $2,492,000 $2,492,000 $2,492,000 52,492,000 $9,857,098 $10,226,362 $10,607,526 $10,803,759 $11,005,611 Total Ongoing Harbor Costs $4,373,248 $4,460,713 $4,549,927 $4,640,926 $4,733,744 $4,828,419 $4,924,988 Surplus (Deficit) Water Related & Tidelands Rev -Exp $4,779,429 $5,038,628 $5,307,171 $5,585,436 $5,873,782 $5,975,339 $6,080,624 Cumulative Surplus (Deficit) Woter-Related $4,779,429 $9,818,057 $15,125,228 $20,710,664 $26,584,446 $32,559,785 $38,640,409 One Time Capital Requirements $6,925,000 $6,925,000 Federal Funds Avoialable for Capital Project (estimated) $2,000,000 NMA Surplus (Deficit) Total Harbor Rev over Capital Requirements ($145,571) ($1,886,372) Cumulative Surplus (Deficit) Total Harbor Rev over Exp ($145,571) ($2,031,943) $6,925,000 $6,925,000 $2,300,000 $2,300,000 $2,300,000 ($1,617,829) ($1,339,564) $3,573,782 $3,675,339 $3,780,624 ($3,649,772) ($4,989,336) ($1,415,554) $2,259,785 $6,040,409 Comparison City Mooring Fee Increase to NMA One Time Capital Expenditure Paid for in 7 - 8 years with NMA Proposal Comparison City Mooring Increase to NMA 2011 2012 2013 2014 2015 2016 2017 Onshore and Offshore Moorings $700,000 $714,000 $728,280 $742,846 $757,703 $772,857 $788,314 Proposed Mooring Rate Increase City $207,795 $425,401 $651,519 $886,512 $1,130,719 $1,187,255 $1,246,618 City Total Proposed Mooring Revenue $907,795 $1,139,401 $1,379,799 $1,629,358 $1,888,422 $1,960,112 $2,034,932 Percentage Total Existing Revenue Sources 10% 12% 14% 16% 18% 18% 18% Proposed NMA Rate Increase(CPI Index=45% rise2011 & 2% inflation) $315,000 $321,300 $327,726 $334,281 $340,966 $347,785 $354,741 Total Proposed NMA Mooring Revenue $1,015,000 $1,035,300 $1,056,006 $1,077,126 $1,098,669 $1,120,642 $1,143,055 Percentage Total Existing Revenue Sources 11% 11% 11% 11% 10% 10% 10% NMA Surplus (Deficit) Total Harbor Rev over Cap Req.- City Mooring Fees ($145,571) ($1,886,372) ($1,617,829) ($1,339,564) $3,573,782 $3,675,339 $3,780,624 NMA Surp (Def) Total Harbor Rev over Cap. Req. NMA CPI adj. Mooring Fees $(38,366.00) $ (1,990,473) $ (1,941,623) $ (1,891,795) $ 2,784,029 $ 2,835,869 $ 2,888,747 NMA Cumulative Surplus (Den Total Har Rev over Exp - $38,366.00 ($2,028,839) ($3,970,462) ($5,862,257) ($3,078,228) ($242,359) $2,646,387 Transferability • City condoned the process of selling mooring rights: 1. Recommending to interested parties that the only practical way to attain a mooring was to buy a boat on a mooring since the waiting list was so long — the value of that right became a function of market demand and inflation 2. The majority of moorings have been transferred in this fashion for over 50 years 3. The City of Newport Beach has itself sold moorings as recently as 2004 ... does that not indicate acceptance of the practice? 4. City of Newport has followed the same practice as other ports such as Avalon, Morro Bay, Port San Luis, and Pillar Point. 5. As recently as June 2010 the City and County Board of Supervisors formalized transfers on page 13 of the Mooring Administration contract with the Harbor Patrol. Transferability The proposed elimination of transferability will harm existing mooring holders on a massive scale 1. Unfair to existing mooring permit holders who in good faith followed the established and accepted practice and only wish to be able to recoup their investment if they move out of boating 2. Since the City embraced and encouraged that practice they have the obligation to protect the value of that asset for their citizens A Reasonable Transferability Document Strikes a Worthy of True Consideration • Who worked on it? Option n Appropriate Compromise by Council Members • HRD Staff members Rossmiller, Miller, Stakeholders, both City Attorneys, City Revenue Department, Harbor Commissioners & Mooring Master Plan Committee Citizen Group; Harbor Master Deputies • How long in the works? Over three years • Who reviewed it? • Harbor Commissioners Duffield, Collins, Beek, Corrough, Rodheim, Lawrenz, Rhyne, Rossmiller, Miller, Stakeholders, MMPSC, Harbor Patrol, Dave Kiff, both City Attorneys, City Revenue Dept., • Who liked it? • All Harbor Commissioners, MMPSC, Harbor Patrol, NMA and other stakeholders • Former City Attorney reviewed and encouraged process and ideas, current City Attorney, David Hunt, reviewed twice and would like to re -word "rental" • Dave Kiff supported the concept for over a year • Where is it now? • In the City's court, everyone wonders why no input from Council until formation of ad hoc Committee. • Worthy of full consideration by City Council between now and their vote on mooring fees and transferability Transferability Document provides Well thought out solutions What does the Transferability Document Do? • Improves and updates definitions and terms currently in the Ordinance • Improves public access with both short and long term rental of empty, or underutilized moorings • Generates additional income to City with predictable, year -round rental opportunities, effectively allowing City to double dip from mooring permit fee and additional income from rental. • Defines entities that may be mooring permit holder (business entities, trusts, yacht clubs, etc.) • Allows for Multi Vessel Mooring Systems • Clearly spells out permit requirements: name of responsible person, city's rights, provides for proof of liability insurance, Transferability Document =Transfers • Sets rigid qualifications for transferees and permittees • Establishes Mooring Permit Transfer Fee (new income to city) • Eliminates mooring speculation • Limits transfer to one offshore mooring per 12 month period • Addresses unpaid fees and consequences • Gives Harbor Resources discretion on transfers • Mooring vacant 60 days after transfer may be used for long term rental • No live - aboards on long term rental moorings • Allows two mooring permit holders to trade moorings for mutual convenience • Addresses revocation and surrender of mooring permit Transferability Document Provides solutions to significant issues: • Stops people from buying and selling moorings for profit — Word crafted a document that provides solid language to prevent the buying and selling of moorings — Allows those who have used long standing, condoned methods to acquire a mooring to transfer the mooring to another individual when necessary • Improve transfer process — Sets out clear definitions, conditions and process for controlled transfers Transferability Document — A "win — win" Adoption of the Transferability Document suggestions would support the interests of all mooring stakeholders including the City of Newport Beach, improve public access by way of short and long term rentals, and it would generate new revenues for the city for its forecasted capital expenditures in the harbor. It is a "win -win" that the Council should consider Recommendations • Adjust mooring fees in a fair and reasonable manner • Adopt the Transferab Section 17.01.030 of 17.60.040 of Chapter Municipal Code ility Document amending Chapter 17.40 and Section 17.60 of Title 17 of the NB • Consider additional sources of income for the City • Charge same $ per foot for all tidelands boat storage — Moorings and piers — Estimated minimum $700,000 in the first year from boats on private piers • Charge fee on mooring transfers • Charge fee for long -term rental of vacant moorings Summary The City Manager's proposal — "Outcome of changes to mooring fees and policy should be fair, reasonable, and legally defensible." Is not reasonable • Indexes mooring fees to expensive upland real estate values Is not fair • Make dramatic changes to mooring transferability in a cavalier manner while ignoring Transferability Draft Document approved by Harbor Commission City Needs to do the right thing, not just the legal thing • While the City may feel it is on firm legal ground by drastically altering the city's transferability policy, are they on firm moral ground? Is a complete reversal of the city's long sanctioned method the right thing to do to the mooring stakeholders. Are they punishing the many for the actions of a few? Alternative Proposals Mooring fees should be immediately indexed to the Consumer Price Index using the date of the last mooring fee increase (Jan. 1996) as a base point and shall be indexed annually going forward. No changes shall be made at this time to the rules regarding mooring transferability. Transferability Document needs to be studied and adopted in the future. NEWPORT MOORING ASSOCIATION A NON - PROFIT ASSOCIATION OF MOORED BOAT OWNERS DATE: November 9, 2010 TO: City Council FROM: Newport Mooring Association MATTER: Harbor Fee Update Study Session 11.9.10 SUBJECT: NMA's Discussion of Key Issues Affecting Mooring Rates: Fairness, Public Policy, Common Sense, and the Law SUMMARY: The City Manager's Proposal on Harbor Mooring Charges advises of a "harbor revenue" shortfall resulting from projected dredging and ongoing harbor maintenance costs. To partially offset those projected costs, the City Manager proposes a mooring rate hike that would raise Newport Harbor mooring rates to roughly three times the regional average. The proposed rate hike is unfair to mooring permit holders who rely on current rates to provide them with affordable boat storage on the bay. The proposed rate hike also defeats the two -fold public policy of: (1) Charging fair market value for the small part of the Tidelands occupied by each moored boat (because the proposed rates greatly exceed market rates); and (2) Providing affordable access to the bay. The City Manager's proposal is apparently intended to remove the "high transfer cost" of a mooring permit as a "barrier to low cost entry" into the mooring fields. But higher rates will only add another barrier to entry. Finally, the proposed rates violate the prohibition on rate discrimination in section 1(d) of the Tidelands Grant. 1 1. FAIRNESS: A. Continue to Set Rates Based on Mooring Rates Charged by Other Similar Harbors in the Region In 1995, the City of Newport Bcach established a schedule for mooring fees based upon fees charged by other harbors in Southern California. This resulted in the current fee schedule. (Resolution, Exhibit 1) The Resolution states in essence that a comparison of rates charged to boats moored in other similar harbors provides the fair market value for Newport Harbor. This finding remains true to this day, and any departure from it must be scrutinized - -- especially because such a departure is likely to result in rates that exceed fair market value. The Mooring Association submits a current comparative analysis of mooring rates in Southern California harbors. (Exhibit 2) A review of mooring rates in other similarly situated harbors shows that the current City rate is already above averaee for Southern California. B. Avoid an Arbitrary Valuation Method That is Designed Solely to Guarantee a Rate Increase Far Above Reeional Market Values for Moorings: The City Manager urges Council to depart from long accepted mooring valuation methods for one reason: to increase mooring rates two to three times fair market value. The City Manager's new valuation method is based on a percentage of Newport Harbor slip rates. Newport Harbor slip rates are affected by the extremely high value of the waterfront real estate to which the slips are connected. Thus, the near tripling of mooring rates proposed by the City Manager results not from a fair market valuation of the Tidelands occupied by moored boats, but from a valuation of improvements to real property adjacent to the Tidelands. 7 2. PUBLIC POLICY: The City Manager's analysis obscures the City Council's mission here, which is two -fold: 1. Obtain fair value for moorings, which avoids a gift of public property prohibited by the California Constitution; and 2. Provide affordable public access to the Tidelands. The City Manager's proposal, if adopted, would ensure that neither of these goals is met. Rather, the proposed rate increase would: (1) Result in mooring rates at least three times the regional average; and (2) Deny affordable mooring rates to persons who rely on them to use the bay to store their boats. The assumption that most mooring permit holders are wealthy individuals who intend to profit on the ultimate sale of the permit is not supported by evidence, and, in most cases, is just plain wrong. While it is true that some permit holders are concerned that they paid a five figure sum for their permit (which they now stand to lose), most permit holders simply rely on their mooring permits to provide them with affordable (albeit inconvenient) storage for their boat in Newport Harbor. Under the City Manager's "analysis," higher rates will wipe out private permit transfer value. If this unsubstantiated assumption were accurate, the City Manager would not need to include in his proposal new regulations restricting the private transfer of moorings. 3 3. COMMON SENSE Part 3 of the City Manager's presentation projects "harbor revenue" short falls resulting primarily from Tidelands dredging and maintenance operations. (The City Manager's presentation omits an analysis of total Tidelands revenues.) Assuming (without conceding) that the City stands to "lose" money due to projected harbor maintenance and dredging expenses, the first question is: Who should bear the cost of these operations? There is only one common sense answer: ALL persons who benefit from a dredged and maintained bay should pay these costs. This answer is based on the following simple inquiry: a. Question: Who benefits primarily from dredging and maintenance operations essential to navigation by boats drawing water? Answer: Primarily, persons who store private yachts on the Tidelands. b. Questio n: Which boat owners pay the City (directly or indirectly) to store their boats on the Tidelands? Answer: All boat owners except the owners of several thousand boats tied to private piers. The math is fairly simple here. The City Manager's proposed mooring rate hike will not cover projected dredging and maintenance short falls for one simple reason: The rates target the minority of all boats stored privately on the Tidelands. Most boats moored outside of marinas on the bay are tied to private piers. There is no storage fee of any kind charged to the owners of these boats. The common sense solution to the City Manager's projected revenue shortfall is the adoption of ordinances that require the owners of all boats stored on the Tidelands to pay their fair share of the cost of dredging and maintaining the bay. Once this cost is shared fairly, the annual storage charge for all boat owners should be substantially less than the $20 per foot per year currently charged to store a boat at an offshore mooring. And the projected shortfall should be resolved, as well. 4 4. THE LAW The law prohibits the City from charging one group of boat owners to store their boat on the Tidelands, while at the same time granting the same right free of charge to other boat owners (i.e., the owners of boats tied to private piers). Specifically, Section 1(d) of the Tidelands Grant prohibits the City from establishing discriminatory rates for aM use of the bay. Oddly, the City Attorney has taken the lead in defending the City's "right" to maintain a decades -long discriminatory rate structure that favors the owners of huge motor yachts tied to private piers. In response to this, NMA hired a recognized expert on legislative history, who produced a report supported by 500 pages of exhibits. The report has been in the hands of the City Attorney for over a month. The legislative history specialist's report establishes that the rate discrimination prohibition in Section I (d) of the Tidelands Grant has nothing to do with race or gender. Rather, in section 1(d), the California Legislature intended to prohibit precisely the type of rate discrimination that is present here: Different charges for the same or similar "use" of the bay. As the City Attorney points out in his September 28, 2010 memorandum to City Council, the City may classify various "uses" of the harbor for the purpose of establishing variable rates for uses. But there is no rational way to "classify" different "uses" of the bay here. The rate discrimination here applies to a singular use of the bay: Storage of private yachts on Tidelands held in trust by the City for the benefit of the public. Owners of boats tied to moorings pay the City (directly) for the right to exclusively occupy a small part of the Tidelands. Owners of boats tied up in commercial marinas pay the City (indirectly) for the right to exclusively occupy a small part of the Tidelands. But owners of boats tied to private piers do not pay anyone for the right to exclusively occupy a small part of the Tidelands. 5 How does the City Attorney propose that the City classify the storage of boats at a private pier differently than the storage of boats tied to moorings? His memos don't say. But at last week's study session for the ad hoc Committee on Harbor Fees, the City Attorney signaled his reliance on Public Resources Code section 6503.5, which prohibits the City from charging rent for a private pier, only. Here is the statute that the City Attorney evidently believes sets the storage of boats tied to private piers apart from the storage of boats tied to moorings: § 6503.5. Rent charges for land use by littoral landowner prohibited; Payment of expenses (a) Notwithstanding the provisions of Section 6503, no rent shall be charged for any private recreational pier constructed on state lands for the use of a littoral landowner. However, a littoral landowner shall pay to the commission, in accordance with its rules and regulations, the commission's expenses in issuing a lease or permit for the state lands. (b) As used in this section, the following terms have the following meanings: (1) "Littoral landowner" means (A) any natural person or persons who own littoral land improved with, and used solely for, a single - family dwelling or (b) any association of, or any nonprofit corporation consisting of, natural persons who own parcels of land, each of which is zoned or used solely for a single - family dwelling, and who are entitled to the use of a private recreational pier on littoral land that is owned by the association or nonprofit corporation and is not more than one mile from any such parcel owned by a member thereof. (2) "Recreational pier" includes any fixed facility for the docking or mooring of boats that is constructed for the use of the littoral landowner. For the reasons explained below, PRE 6503.5 does not support a separate "classification of use of the Tidelands" for boats moored at private piers. 0 First, since section 6503.5 authorizes the "free use" of "public land," it must be interpreted very narrowly, so that the "rent free" use of the bay is not extended beyond what is s ecified by the legislature. Here, the rent free "use" of public property allowed in section 6503.5 applies to a "private recreational pier." In subsection (b)(2), a "Recreational pier" is defined as a `fried facility." A boat is anything but a "fixed facility." And importantly, a boat adjacent to a private pier "exclusively occupies" a different part of the bay than the pier itself. Thus, the "rent free" provisions of section 6503.5 do not apply to the part of the Tidelands exclusively occupied by a boat adjacent to the private pier. Every boat stored lawfully on the bay is "occupying a part of the Tidelands to the exclusion of the public." 1 The "footprint" of the Tidelands occupied by a moored boat is no different than the "footprint" of the Tidelands occupied by the same boat when it is tied to a private pier. Accordingly, the City should "rent" both "footprints" of the Tidelands for the same (or very similar) rates. But instead, the City rents such a "footprint" for $800 per year in the middle of the bay, but charges no rent for an identical Tidelands "footprint" located adjacent to a private pier. This is the essence of "rate discrimination" outlawed in section 1(d) of the Tidelands Grant. In sum, rate discrimination is not the "non- issue" that the City Attorney says it is. The rate structure for storing boats on the granted Tidelands has been unlawfully discriminatory for decades. The only potential bar to legal action against the current rate structure is the statute of limitations. But if the City adopts a new rate structure, the new (and equally discriminatory) rates will not be protected by the statute of limitations. 'According to the City Attorney's memoranda to Council, the City is acting as a "proprietor" of the bay when it "licenses" the right to occupy a part of the Tidelands to the exclusion of the public. But this truism does not end the inquiry. It opens it. 7 RESOLUTION NO. 95- 77 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BRACH ESTABLISHING 140ORING FEES AND A LATE PAYMENT PENALTY PURSUANT TO SECTION 17.22.050 OF THE NEWPORT BRACE MUNICIPAL CODE • AND RESCINDING RESOLUTION NO. 94 -53. WHEREAS, pursuant to Section 17.22.050 of the Newport Beach Municipal Code, the City Council of the City of Newport Beach may prescribe by resolution fees for mooring permits issued pursuant to Chapter 17.22; and WHEREAS, the City Council of the City of Newport Beach has considered the fees recommended by the Harbors and Beaches Committee and finds them to be fair, equitable and reasonably consistent with charges for mooring permits of a similar nature in other locations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport, aB follows: 1. The following schedule of fees for mooring permits is established: a. Offshore moorings bayward of the Pierhead Line: $20.00 per vessel foot per year for the length of vessel authorized; and b. Onshore moorings landward of the Pierhead Line: $10.00 per vessel foot. 2. The fees imposed by this Resolution shall be payable annually, in advance, or on such different period as may be established by the Finance Director, and shall take effect January 1, 1996. 3. Fees shall be due and payable on the 1st day of February, 1996, and the 1st day of February each and every year thereafter. The fees shall become delinquent on the let day of March. Upon • failure of the permittee to pay the prescribed fee when due and prior to delinquency, the Finance Director shall add a late penalty of twenty -five percent (254) of said fee on the let day of each month after the due date thereof; provided, however, that the amount of such late payment penalty to be added to the primary fee shall, in no event, exceed one hundred percent (1001) of the amount of the fee due. It is found that the late payment penalty is necessary to offset the additional administrative costs of the City of Newport Beach in collecting delinquent permit fees. 4. The fees set by this Resolution are equivalent to the • fair market value for the use of the tidelands herein involved, and the City council specifically finds that the fees represent the fair market value for the use of said tidelands. 5. Resolution No. 94 -53 is hereby rescinded effective July 1, 1995. 6. The City Council reserves the right, in its sole discretion, to increase or decrease the annual fee at any time during any calendar year, and any modification to the mooring shall be collected pro rata and in the manner specified by the City council. ADOPTED, this 26th day of June, 1995. ATTEST: is -2- Source: NMA site: http� /twww newportmooringassociabon .orq /docs/Fee- Comp - 010.htm To make comparisons easier, a 40 foot mooring is assumed. Some harbors do not price moorings on a price per foot basis. Newport Beach offers approximately 1235 moorings, approximately 450 of which are shore moorings. City We For more, see footnotes 1 -8 below which correspond to red numbers at far right. Southern California includes area south of Half Moon Bay. 110 S-1 Santa Barbara Avalon fs r .r7 v3rY' .• a. r 250.00 350.40 1 �1+�r�'Y✓q'� f�Ctl 250.00 350.40 y� � •` a i _ 1,.� . f f 20.83 0 29.20 0.73 8.763 Part San Luis 250 Yes 75.00 No 33.50 402.00 402.00 33.50 0.84 10.05 5i Monterey 150 "AssignmenC' -n/a- No 47.30 510.84 510.84 1) Newport Beach 785 Yes -60.00 Yes 66.67 800.00 800.00 66.67 1.67 20.0021 Morro Bay 119 Yes 1000.00 No 74.50 894.00 894.00 74.50 1.86 22.356 San Diego 462 No -n/a- No 142.62 1711.44 1411.44 117.62 2.94 35.29 1 1 NOTE: A simple average of flat monthly fees which range from $128.17 to $157.07. Not as precise as a weighted average, which would require further research. San Diego charges no transfer fee for moorings, does not sub -lease moorings, collects no liveaboard fees, and contracts with San Diego Mooring Company to manage & maintain the moorings. These grossed -up fees do not represent San Diego's net income from moorings. SDMC also charges a nominal application fee (under $100). Newport Beach also charges a transfer fee which is very likely to significantly increase, and collects all mooring rental fees. 2 NOTE: Newport Beach collects transient rental income, liveaboard fees. This comparison does not include the 450 shore moorings. 3 NOTE: Avalon rents unused moorings to visitors at rates of $27 to $109 per day (rest of island nearly same). With the exception of the moorings in Cat Harbor, moorings outside of Avalon do not provide year -round protection. Furthermore, the use of short-lived polypropylene lines greatly increases maintenance costs paid by the permit holder. Rates charged for moorings outside of Avalon include these high maintenance costs at $49.74 /ft/yr. The tackle used in Avalon is similar to that used elsewhere at Catalina, but only Avalon breaks permit fee out from maintenance cost in billing. Avalon bills the permit at $8.76 /ft/yr. 4 NOTE: Santa Barbara's mooring fee is $250 1year regardless of vessel size. No transfer fee, no rental fee, no regulation or fee for liveaboard. Owner pays maintenance. Moorings assigned by lottery. 5 NOTE: A simple average of Flat fees in Port San Luis collected quarterly between a monthly - equivalent range of $28 to $39. A weighted average would be more precise but would require further research. Port San Luis offers flat monthly rates in tiers by size; up to 35 feet is priced equivalent to $28 /mo, 36 feet to 55 feet is $341mo, 56 feet to 75 feet is $39 1mo. These numbers are equivalent to from $6.24 to $11.33 per foot per year. Using the actual price for a 40 foot boat, Port San Luis mooring permit fee is $408 /yr, $34 /mo, $0.85 /ft/mo, $10.20 /f /yr. Port San Luis maintains 34 first -come, first -served visitor moorings at $10 to $15 1day by size. Zero regulation or fee for liveaboard. Owner pays for maintenance, performed by Harbor District. Transient use $15 /day for one of the 34 harbor - district owned moorings. 6 NOTE: Morro Bay charges a flat rate mooring fee of $8941year. Assuming a 50 foot boat, this equals $17.88 /f /year. An alternative way to figure out what this rate equals on a per -foot basis would be to find the weighted average of mooring sizes, then divide that Flat fee by that weighted average, but this would require more research. 7 NOTE: Monterey mooring pricing is frustratingly complex to understand. Monterey has several pricing tiers; rates are not size- dependent within each tier. Here the price for a non - liveaboard local is used. Prices are higher for non - residents, liveaboards, and "assigned" moorings (at a "City' mooring rate). Monterey's system does not allow direct transfer of moorings, yet if you purchase a boat on a mooring, you will probably be "assigned" that mooring and you'll pay a premium monthly fee for it. Monterey gives 10% discount for year's payment in advance. To keep this simpler, this disregards the seasonal "East Moorings" in the National Marine Sanctuary, a most unique vantage point from which you can watch otters float by, watching you. Monterey hopes to entice berth permit holders to use these seasonal moorings so it can charge transient use rates for berth space and provide harbor visitors the convenience of dock access. Visiting boats may also use these East moorings.