Loading...
HomeMy WebLinkAbout19 - 19- Miscellaneous Items received after the Agenda printedttheCalifornia's Boating & Fishing News INSIDE: FREE The Log's Southern California Boatyard Guide 2011, Pg. 31 N California's Number 1 Boating Classifieds for 34 Years Running, Pg. 57 No. 881 California Boating News Since 1971 November 12 - 25, 2010 Boaters Denounce Plan to Raise Mooring Fees An ad hoc committee's proposal to almost triple Newport Harbor mooring fees and alter the system in which moorings are trans- ferred was loudly opposed by a crowd of mooring holders at a Nov. 9 Newport Beach City Council study session ... Pg. 14 a Q m e E S 14 + November 12 - 25, 2010 • The Boaters Denounce Plan to Raise Mooring Item will be discussed again at offshore moorings Nov. 23 city study session. I would be set at 14 By Ambrosia Brody NEWPORT BEACH — An ad hoc com- mittee's proposal to almost triple Newport Harbor mooring fees and alter the system in which moorings are transferred was loudly opposed by a crowd of mooring holders spealdng at a Nov. 9 Newport Beach City Council study session. Under the proposal for the har- bor's 1,220 moorings, new rates for percent of the har- bor's average slip rate, instead of the current 5 percent. The new onshore mooring rate would be half of that. "You are burden- ing, for revenue, those people who are least capable of bearing those bur- dens," Sherman Fees More Expensive Moorings? — Under a fee increase pro- posal for Newport Harbor's 1,220 moorings, rates for offshore moorings would be set at 14 percent of the har- bor's average slip rate, instead of the current 5 percent The new onshore mooring rate would be half of that O ° O' a ti C TJ O A •{y �c+C y 00 1•' O ,'G'„ O y b�0 r •p rr OA o a co ��o v•y°yh ' _°Qo o 3 ° e ay C3 0 �° : v~0 O°Oy .m � �3 ° w .�°E. .0 �o�E E wsyEuL���U H �E°O .�a(� xm C° i ° . y 3 a Y °Y � 4.° roC .yy 5, o F 0 'm � ¢ ' � C ca oH an . d oa>+ Y °O 4 t h7 ? � N .Y w zm y m ° o H 00OO i ° o 0. � a ❑w c o h ma3 J c❑ G m C n 0 0 0.0 U M W O C tO o a°i z O E Oo v o+❑ N o « ' m�a'❑°N ty 7 4w m° o n : ' x ao a 3o 3m E c °> 3 ° o m E .o 0 0.0 P. a0.¢° _4,0 ° to - o b o to o o O o ° . z t- 0 0 b o a❑ >c E a ° Q, o a coo • ° o a � a °oa �E o° Y° ° °E o m =Zo j E a a c o�+ rao.S�o c E�yobc hco`" Eh�o�� >i 2 "" rp R .° vi V .b ,�,' y 41 YO 4 N M° O ++ C 3 U .4: O °: ° N t0 w `� .�i "°' h 7 M aO3�0 ° m 3o° mO a 2 ❑ E o an Eu a o" ❑6°r o > o $°< ° 0 2 o a a h b a s a Z vaaE � t .y cO y - �o°Pw a °hicax °"��� c n ova°. °��� ° °O •o E !a PC M ,Fees From,page l'4 - have no parking, no showers or elec- tricity" I'fapproved, increases will be implemented over five years, with the first increase in2011: During,the-next: five years, vacancies, transfer fees and the wait list will be monitored to ensure that pricing „is appropriate, according to the committee. City Manager Dave Kiff acknowl- edged that increases are required to maintain the harbor, including dredg- ing and other expenses associated with harbor upkeep. Thecosts:will ulso.help offset the additional` cost charged by the Orange County Sheriff ,'s Harbor Patrol for administering the moorings. The city signed a five -year contract with the agency, which raised its fee from, $115,000 to $290,000 per year. Mayor Pro Tern Henn said the fee increases were important, bringing attention to the $67 million cuinulative deficit in harbor costs projected for 2017. "We have a real,alrnost- emergency situation level "here; for spending requirements to support and maintain and improve this`harbor,, that we have to address: No matterwhat," he said. The city does not have an expecta- tion of placing;the entire burden on .the shoulders of harbor users, he ;added. "Our intent ismot to'jast go, out t6 be looking to "get money from anybody we can get it from: Our intent is to at least be able;to assure along the way that the various harbor users obtain their fair share for the support Of the „harbor:•” The fees were only one point of contention for boaters who packed the council chambers, occupying, every seat. For many, the transferabil- ity rules floated by the subcommittee are a larger issue. The city has grappled with trans- ferability issues for several years since the process'came underscrutiny by the Orange County Grand Jury in 2007 —when it issued a report enti- tled "Newport Moorings: Are They ,Held in the Public Trust or Private Profit ?” The 13 7page reportexpressed 'concerns about ,a "legal loopholel" that tnany'residents use to sell their moorings` (by selling a moored boat at 1617 a nit the,city scheduled independent appraisal for the fair market value of mooring ;per- mit fees.The city was also,asked'to, creafe an effective waiting list system for moorings,',to address complaints abou , _g „time.warttmg list boaters never getting a mooring: Under the new proposal, mooring holders will be limited in the number of times a mooring can be transferred. Current mooring holders will be allotted one transfer to another person between now and 2015, except for immediate family members If a person purchases a vessel on a mooring; they will have up to six months to stay on the mooring until they must relocate. The proposal places no restrictions on transfers within an immediate family ifthe mooring permit holder has died. "This, is unfair to ,existing mooring permit holders, who in good faith checked with the city in advance, only wishing to recoup their investment” said Dan Gribble, owner of Boatswain's Locker, "Since,the city has embraced and encouraged this practice, l think there is art obligation to protect the value of that asset for the citizens." Instead_of;the proposed transfer policy, the,NMA asked council mem- bers to consider the transferability document crafted by the Mooring Master Plan Subcommittee. Forthree years, the committee worked on the creation of proposed�new transfer- ability rules that address the concerns of the grand jury and city officials. The 12- pagedocum'ent'that has been reviewed by:two city attorneys, city, council members, the 'city` revenue department and the Orange County Sheriff's Harbor Patrol, „and was sub- mitted to city council in 2009. NMA Secretary Bill`Moses'called the documenta ',win win” forth'e city', and harbor users. The Moor' Master Plan Subcommittee's plan would eliminate speculative buying and selling of moorings — often referred to as "the black market." "It creates newrevenue;forthe city and improves public access to short- and long -term rental opportunities, which triggers new incomes and use of the moorings," Moses said. "leis a way for the city to do the right thing." Under the NMA.docu men t„ trans- ferability would'be allowed fora transferee who does not hold more than two other mooring permits. Upon transfer, the permittee would be required to show proof of owner- ship within 60 days; otherwise, the mooring would be deemed vacant and could' be rented. Mooring use could not be "loaned" to someone else for mare than 30 days, and the lender could not have "loaned" mooring use for more than 60 days in pr'eviou's yeas The revised fee plan will be dis- cussed again in a Nov.,23 study, -ses- sion. CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY DATE: November 22, 2010 SUBJECT: Updated Redline of Mooring Administration Ordinance (aka "Transferability Document") with Input through November 22, 2010 There has been further input on the Mooring Administration Ordinance since it was distributed in your agenda packet. The Ad Hoc Committee and staff have recommended further refinements to the document that are reflected in the redline document attached. These changes are based in part on a desire to achieve clarity and in part based upon input from stakeholders. All substantive changes are addressed in comments in the redline document. The general nature of the changes is: 1. A cautionary change to avoid arguments that Proposition 26 is implicated; 2. Address wording issues on renumbering of the sections when they are codified and eliminate typographical errors; 3. Achieve clarity with respect to mooring fields available to yacht clubs; 4. Eliminate ambiguity regarding "other" moorings in the exceptions un 17.60.040 B.1.a.; 5. Make it clear that certain transfers, those between immediate family and for a temporary six month grace period upon sale of vessel, apply regardless of the time they occur; 6. Eliminate any auctioning off of mooring permits in order to be consistent with the intent to make the "Interest List' the means for obtaining a mooring permit; and thus increase accessibility to the harbor; and 7. Clarify revocation provisions. Updated Redline of Mooring Administration Ordinance November 22, 2010 Page: 2 We hope these revisions make for a clearer document. Please let us know if there are any questions or concerns. Otherwise we will address all questions at the Council meeting. ( 2 Attachment: Revised Redline of Mooring Administration Ordinance — November 22, 2010 Cc: Dave Kiff, City Manager (w/ attachment) A08 -00136 AMC from DRH re Updated Redline of Mooting Admin Ordinance - 11.22. 10 ORDINANCE NO. 2010-. 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 well in excess of the annual permit fees. This value may be inappropriate in light of the California Constitution's prohibition against the gifting of public funds or assets as set forth in Article XVI, Section 6 of the state Constitution. This amendment to the mooring permit and transferability provisions of Title 17 provides for a revised and short -term process begins to bang the Cdys administration of moonngs into compliance with Article XVI, Section 6 ltal3q�fdetgs fes rents` and chcs that pro�aide venue w cft ca 1an �wPr aas�st�rf tytldtrfg Harbor malnteriance ghd - drzdgi?g "fifo1eek nd i#or amerai€te's:= NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: �COmmeirt [DRH1j:•1L1a Asa c2u5onary 'cklange'tq ayvkF>mP>Ica6ng PropaaihOn'26 = Cptisid @6ahops, c Section 17.01. Comment (DRH21: Simply'clemup edits. ,(4) as TOROWS: 17.01.030 Definition of Terms. A. Definitions: A. 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 17.01.0300 }-(15� of Chapter 17.01 of the Newport Beach Municipal Code is hereby added iA readamended to add Section 1701.030(J) 15 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(9) (4 1) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added4e4eadamended to add Section 17.01.030(0) u as follows: 0. Definitions: S. 4. Sub - Permits. a. Sub - Permits - Long Term. The term "Long Term Sub - Permit' shall be defined as those mooring sub - permits issued by the City for the temporary use of a Deemed Vacant or a Noticed Vacant mooring for a period of between one (1) month -to- twelve (12) months. b. Sub-Permit - Short Term. The term "Short Term Sub- Permit shall be defined as those mooring sub - permits issued by the City for a temporary use of a Deemed Vacant or Noticed Vacant mooring for any f (A08- 001361 Mooring Admin Ord - Redlne- 11.22.10 Post Flu Meedng(DRH)/Reelsed 11.23.10&M period of time less than thirty (30) days as determined by the Harbor Resources Manager. 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. A. Live - aboards shall not be permitted at piers that are bay ward of residentially zoned areas. No person shall live- aboard any vessel on an onshore mooring. (Ord. 2008 -2 § 1 (part), 2008) B. Live - aboards are prohibited on moorings subject to long -term mooring sub- permits as noted in Section 17.60.040(G). C. Live - aboards may be permitted on short term on moorings subject to short term sub - permits 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, maintain, use or tie to 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 or having otherwise complied with this section. A mooring permit is in the nature of license for the temporary use of a specific location within the Newport Harbor. Any work described and authorized in the permit must be completed within the time designated in the permit. B. Issuance of Permit — Conditions. The Harbor Resources Manager, in furtherance of the tideland grants to the City, may issue a mooring permit or mooring sub - permit to allow the Mooring Permittee or Mooring Sub - Permittee to temporarily use a portion of the waters of Newport Harbor for the mooring of a vessel. 1. Exceptions: a. The Balboa Yacht Club and the Newport Harbor Yacht Club (408- 001361 - Moortng Admire Ord - Reditne - 11.22.10 Post Flu Meeting (DR11)/Reolsed 11.23.10 /cm (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. t ~ ^;;; 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 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 (14') feet 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 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 ( "Mooring Permittee ") who shall be responsible for all activities related to the mooring permit. To the satisfaction of the Harbor Resources Manager, the Mooring Permittee shall: a. Identify on the permit the full legal name, current address, current telephone number and current e-mail address, if one exists, of the Mooring Permittee; b. Agree to be responsible for permit fees, maintenance and repair of mooring equipment; I IA08- 001361-MO rWq Admin Ord - Redline - 11.22.10 Post Flu Meeting (ORFIJ /Revised 11.23.10 /cm C;umment tDRH3f: Dealt wtthspecdically in new B 3.t. below to eLm uatl ambiguity : C. Grant permission to the City of Newport Beach to temporarily assign the mooring to another vessel when it is unoccupied through the issuance of a mooring sub - permit; d. Agree to 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 a person assigned the mooring as a mooring sub - permittee under subsections G and/or H 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. 3. Permitteeirransferee Qualifications. A mooring permit shall -m�be held by, or transferred to, only the following persons: a. A natural person holding title to an Assigned Vessel; b. An executor or administrator carrying out the terms of a will or administering a probated estate that holds title to an Assigned Vessel, but only for the period of time prior to distribution of the estate; C. An inter vivos trust, family trust, or other similar type of trust estate holding title to an Assigned Vessel so long as all trustors are natural persons and the primary Mooring Permittee shall be the trustee of the trust; d. An approved transferee whose vessel and /or mooring permit are subject to any of the terms and conditions stated in 17.60.040(E); e. 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; -l. 1A08-00136 /- Mooring Admire Ord -Redfn - 1I.22. 10 Post Flu Meeting(DRFp/Remsed 11.23.I0 /cm The Balboa Yacht Club, Newport Harbor Yacht Club and LICA (collectively "Yacht Clubs ") - 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. The boundaries of these mooring areas are graphically depicted C. Plans and Specifications Required. No permit shall be issued for placing, erecting, constructing or maintaining a mooring or buoy unless such mooring or buoy 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 2. In accordance with other plans and specifications for such mooring or buoy which have been submitted by the applicant, showing the construction of such proposed mooring or buoy together with the location thereof, 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 discretion, revoke the permit upon five (5) days written notice to the permittee by first class mail to the address shown on the permit. If the mooring is not removed by the permittee within thirty (30) days after cancellation of the permit, then it shall be deemed abandoned and the title thereto shall vest in the City. Mooring Permittee may apply for reimbursement for the value of the mooring equipment pursuant to subsection M below. I (A08 -00136) - Mooring Admin O d - Red( bee - 11.22.10 Post Flu Meeting (ORkoywevised 11.23.10 /cm FMnanuing ment [DRH4]: Specifically address ing uses that are justified m m the current names of the ring perm[ftees based upon Tidelands nhes, comment [DRHS]: To ehminate ambegmtles based not fully accurate exhibit and to eLenhade any implication that the yacht clubs may not maintain their existing number of moorings, but 'allow for the consolidation into assigned mooring fields. E. Transfer of Permit. No Moorinp pPermittee shall transfer a permit for a mooring or buoy granted under the provisions of this chapter, except, 3. In cases not reflected in 1 and 2 above a Mooring pPermit may be transferred prior to January 1, 2021 up to two times if the Mooring 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 Mooring Permittee. F. Procedures for Transfers: Permits shall not be transferred without the prior written approval of the Harbor Resources Manager. oreF t .,.., aFy , 9024 4-:The Harbor Resources Manager shall approve the transfer of a mooring , permit under the procedures set ferth- out below: 1. The Mooring Permittee (or, if the Permittee is deceased or incapacitated, the transferee) 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 Mooring Permittee (Transferee) qualifies as a Mooring 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 Mooring Permittee and transferor at the time of transfer, then: I. [A08- 001361 - Mooring Admire Old - Redihe -1 L22.10 Post Flu Meeting fDRWL&R iced 11.2310/cm Comment [ORH6]: Moved up from F below to make it clear these types of tramfem maybe made - regardless ofwhen they occu Comment [DRH7]: Since some form of '.transfer is allowedregardless of date the ;procedures m needed 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 Resources Manager within the sixty (60) day period, then the mooring may be deemed vacant and may be rented assigned pursuant to sub - sections G) and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M 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 assigned pursuant to subsection G and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M 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 'I (A08- 001361 - Mooring Admire Ord- Redline - 11.22.10 Post Flu MeeUng(ORH)Lae t d11.23.10/cm unauthorized vessel(s) on the mooring. 5. The Mooring 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 Mooring Permittee or in any dispute with a third party over the Mooring Permittee's right to transfer the permit. 6. Transfer Approval. Upon confirmation of compliance with this subsection, the Harbor Resources Manager must find all of the following conditions to approve the transfer of a mooring permit: a. The Mooring Permittee no longer owns the Assigned Vessel or has retained ownership of the Assigned Vessel and has permanently vacated the mooring; b. The specific mooring location has not been previously transferred more than one (1) time between the effective date of this ordinance and December 31, 2020; C. The transferee has met all the qualifications and conditions for issuance of a permit in subsection B above. 7. The Harbor Resources Manager may approve a one for one exchange of moorings between two Mooring Permittees, subject to compliance with this subsection 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. _I (AO8- 00136) - Mooring Admin Ord - Redline- 1I.22.IOPOstFlu Meeting(DRFO /Reoised11.2310 /cm G. City's Authority to Assign Moorings through Use of Sub - Permits. With the exception of the Balboa Yacht Club, the Newport Harbor Yacht Club, and the Lido Isle Community Association's designated moorings, Mooring Permittee may not rent, assign, or transfer the use of the mooring to any other person. With the exception of moorings issued to Mooring Permittees described in Section B (3) (e), City shall have the authority to assign vacant moorings to sub - permittees pursuant to the following provisions: 1. Deemed Vacant Moorings. City may assign Deemed Vacant Moorings through the issuance of long term sub - permits at its own discretion for any period of time up to one (1) year. Long term sub - permits may be renewed upon availability. The Mooring 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. 2. Noticed Vacant Moorings: City may assign Noticed Vacant Moorings at its own discretion through the issuance of a mooring sub- permit for any period of time, either long or short term, up to the reoccupation date on Mooring Permittee'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 Mooring Permittee's notice, and there is no further written notice from Mooring Permittee, the mooring shall become a Deemed Vacant Mooring. a. Mooring 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 Mooring Permittee intends to vacate his /her mooring, and the date he /she intends to reoccupy the mooring with the Assigned Vessel. i (AO8- 001361 - Mooring Adv Ord - Redl me - 11.22.10 Post Flu Meebng(DR1W/Reulsed1123 IORm b. If Mooring Permittee provides notice, the Mooring Permittee may reclaim the assigned mooring on the reoccupation date indicated in his /her written notice, or, if the Mooring Permittee r returns prior to or after the reoccupation date, upon twenty -four (24) hours written notice to the City. H. Procedures for Mooring Sub - Permit Issuance. Any natural person wishing to use a mooring pursuant to the issuance of a sub - permit must enter into a written mooring sub - permit 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 Mooring Permittee against any claims or losses arising out of, or related to the mooring rental, and that requires the mooring sub - permittee 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 sub - permittee. 4. Mooring sub - permittees shall provide approved mooring lines which shall be removed at the end of the rental period. 5. A mooring sub - permit agreement is renewable based on availability. Upon return of the Assigned Vessel to the mooring, the Harbor Resources Department will attempt to reassign the sub - permittee to another mooring. Mooring sub - permittees have no right of renewal or substitute moorings upon return of the Assigned Vessel, or upon termination of a mooring sub - permit agreement for any reason. Mooring sub - permittees accept an indefinite term at their own risk. 6. The sub - permit 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 moorings subject to a-long term mooring sub - permits. Live- aboards may be temporarily permitted on moorings subject to short-term sub - permits pending vessel inspection and subsequent re- inspection per each short-term sub- (A08- 00136) - Mooring Admtn Ord - Redline - 11.22.10 Post Flu Meeting (D1F1J/Re4sed L1.23. I0 /cm permit renewal. 8. Short term sub - permit renewals are not guaranteed and are subject to availability. 9. Mooring sub - permits 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 assignments shall not cause such persons to lose their position on the Interest List, 10. Mooring sub - permits 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 charge by the Mooring Permittee to a vessel other than the Assigned Vessel for no more than thirty (30) consecutive days provided that: 1) The Mooring Permittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring; 2) The Mooring Permittee has not loaned the mooring for more than sixty (60) days in the twelve (12) month period that immediately 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. I. 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 to the City or who wish to be assigned a mooring on a long term basis from the City through the issuance of a mooring permit or mooring sub- permit. On and after the effective date of this ordinance, the Interest List($) shall be maintained for natural persons interested in securing a mooring permit, or being temporarily assigned the use of a Deemed Vacant or a Noticed Vacant Mooring. 2. Any person wishing to be added to the Interest List must do so by completing a written application and paying 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. i (A08- 001361 -Mmdng Admin Ord- Redline - 11.22.10 Post Pu Meetog(DRH)/Reytsed 112310 /cm 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 administrative 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 his or her 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 on the Interest List will be notified of revoked mooring permit or mooring sub - permit or, surrendered or abandoned moorings and given the opportunity to receive a mooring permit or sub - permit. J. Mooring Permit Transfer Charge. The City shall charge the Mooring Permittee for the right to transfer a mooring permit under section E above in an amount equal to fifty percent (50 %) 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 Mooring Permittee to the same Mooring Permittee as trustor of an inter vivos trust, living trust or other similar estate planning tool; or 2. The transfer is made under Section 17.60.0407jEZ 7171- and 8j. K. Surrendered Mooring Equipment. If the Mooring 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, the Permittee may provide written notice to the Harbor Resources Department of his or her intent to surrender the mooring permit, otherwise the provisions of Section F regarding a vacant mooring shall apply. Once a mooring permit is surrendered, the Mooring 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 (A08- 001361 - Mooing Admin Ord - Redl ine - 11.22.10 Post Flu Meeting (DR1,0j&uised 11.23.10 /cm Commen[ [DRH9p. Deleted as inconsistent with policy to use Interest List and would be ineffective if there was no one interested ui mooringpemut. remove the mooring equipment, title shall vest in the City and the City shall compensate Mooring Permittee the fair value for the mooring equipment, less fees owed, as provided in subsection M below. L.- Revocation e- Surfender -0 Permit. comment toaxioj: s,rfen ae�r an h m K above. 1. Grounds for Revocation. A Mooring Permit or sub - permit may be revoked upon any of the following 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 Mooring Permittee or Sub - permittee has not made the necessary corrections or repairs within the time required; C. 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; d. 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 issued pursuant to this chapter, 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 Mooring Permittee 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 equipment removal shall be paid by the Mooring Permittee. Any moored vessel or equipment not removed within thirty (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 of sale of the vessel or mooring equipment. 4. During any revocation proceeding under this Section L, if the (AO8- 001361 - Mooring Admin Ord - RedUne - 11.22.10 Post Flu Meeting g)RIn/Reuised 11.23. 1 0/cm mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager. M. Moorings Reverting Back To City: Should a mooring revert back to the City for any reason, whether through abandonment, surrender, failure to provide documents pursuant to subsection E. above, or for any other reason, the following shall apply: 1. The Mooring Permittee shall be entitled to recover all of Mooring Permittee's mooring equipment within thirty (30) days of reversion. 2. If Mooring Permittee does not recovery his or her mooring equipment, Mooring Permittee shall be entitled to payment from the City of the fair value of the mooring equipment as depreciated by use in an amount to be determined by the Harbor Resources Manager and as set in the City's Master Fee Resolution. 3. The mooring shall be assigned to an individual form the Interest list pursuant to subsection I above. 4. No mooring that reverts to the City for assignment off of the Interest List, or by any other appropriate procedure, shall have any right to a later assignment by a Mooring Permittee whatsoever. 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 2010, and adopted on the _ day of 2010, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS I (A08 -00I361-Mo rrW Admin Ord- Redline - 11.22.10 Post Flu MeeHng(DRFJ) /Reviled 112310 /cm ABSENT COUNCILMEMBERS MA APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY David R. Hunt, City Attorney ATTEST: CITY CLERK i (A08- 00136)- Moonng Admin Ord - Redtne -11.22.10 Post Flu MeeMg(DRH)/Rev0ed 1I.23.10/cm Washington, Lillian From: Kiff, Dave Sent: Wednesday, November 17, 2010 2:42 PM To: City Clerk's Office �f� ,,: Subject: FW: Mooring leases For the record. GTY L = ) From, Dennis Baker [mailto:Dennis.Baker @spamcop.net] Sent: Wednesday, November 17, 2010 11:25 AM To: Curry, Keith Cc: Daigle, Leslie; Mike Henn; Gardner, Nancy; Rosansky, Steven; Don Webb; Selich, Edward; Kiff, Dave; rush @RushHi112010.com Subject: Mooring leases Hello Mayor Curry, Council members, and City Manager Kiff, Regarding mooring charges and regulations: • In most cases the boat is a luxury item, so the cries of hardship by lease holders rings hollow. • The wails of loss on investment — Why should the city be responsible for the speculation of private citizens? • It is completely inappropriate for people to be able to profit through speculation on the mooring leases, especially when those on a waiting list are denied access. (My understanding is that the mooring leases are city property.) • Since public funds, to which I contribute, are used to manage and patrol the moorings, isn't it true that if this is done at a loss, I'm subsidizing the boat owners since I receive no benefit for this expenditure? Non boaters like myself should not be subsidizing can holders. support the direction staff and council are taking on this issue and hope that you "stick to your guns ". Dennis Baker 706 %: Begonia, CDM 949.675.2199 1 -�l1- 1I -23 -fC 11/23/2010 JOHN HEFFERNAN, RESIDENT ADDRESS: 1971 PORT LAURENT, NB 92660 TIDELAND FEE PAYOR SINCE 1978, AND CURRENTLY BY PAYMENT FOR SLIP # 10 AT BALBOA YACHT CLUB UNDER ITS MASTER SUBLEASE FROM CAL. RECREATION. CO. CITY COUNCIL MEETING - AGENDA ITEM # 19 - MOORING CHARGES OBJECTIONS TO PROPOSED CITY ACTION BEING MADE FOR PURPOSES OF ESTABLISHING AN ADMINISTRATIVE RECORD 1. Tideland Fee Increases need to be mandated on a uniform and non - discriminatory basis. Doing so piece -meal and not at the same time is discriminatory - particular Tideland fees will be increase more than others, increases will not occur at the same time which unfairly increases the cost to and discriminates against the rate payors who get early rate increases to the benefit of other payors whose increases are delayed. 2. Increasing Tideland Fees piece -meal unfairly reduces broad public comment and input on rate increases which can and will have a large financial impact on the payors use and enjoyment of Tidelands. 3. The City's process to determine Tideland fee increases is flawed and do not conform to normal appraisal standards, and does not fairly adjust broad market rates to specific conditions here in Newport Harbor. 4. The City's past use of Tideland fee revenue does not conform to the Public Trust Doctrine or the 1974 Beacon Bay Bill under which the City acts as trustee for the Tidelands by not having consistently and on a non - discriminatory basis kept Tideland fees at market rates. The City's past administration has unfairly conveyed a public benefit to many Tideland users whose Tideland fees have been below market rates, in some cases, since 1996, and in doing so the City owes the Tideland Fund the difference between the submarket Tideland fees the City did collect vs. the market rates which the City should have collected by law. 5. The City's stated use of Tideland revenue, including the increase proposed tonight for moorings, does not conform to normal accounting rules in that the City has unfairly amortized the cost of particular cost items, such as dredging to 10 year cost recovery, far shorter than the useful life of such cost item. 6. The City has not in past properly segregated Tideland fees collected and expenditures area ad- required by law, and there is nothing in the proposed Resolution proposed tonight which corrects that improper practice. 7. The City is not proposing the proper nexus between its proposed fee increase in this Resolution to the use of such fee increases to benefit the payors of this specific fee increase. Ira T.IFILESIJH WORKICNBITIDELANDSWH C -C OBJECTIONS FOR RECORD # 1- 41.27- 2010.doc FRED GAMES SHERMAN L. STACEY LISA A. WEINBERG REBECCA A. TrIOMPSON NANCI S. STACEY KIMBERLY RIBLE ALICIA B. BARTLEY Mayor and City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92661 LAW OFFICES OF GAINES & STACEY LLP TELEPHONE 1111 BAYSIDE DRIVE, SUITE 280 (949)640 -8999 CORONA DEL MAR, CALIFORNIA 92625 FAX (949)640 -8330 November 23, 2010 Re: Proposed Ordinance on Mooring Charges and Mooring Transfers Honorable Mayor and Council: I am writing to you in connection with your consideration of a proposed ordinance to modify the manner in which moorings in Newport Harbor are transferred from the manner that has existed for more than 50 years. There is also a resolution to modify the rent schedule for moorings which has not been modified since 1996. I am a resident of Balboa Island and the owner of both onshore and offshore moorings. It is my request that you not adopt the proposed ordinance and resolution and direct your staff to return with an ordinance and resolution implementing the recommendations of the Mooring Master Plan Sub - Committee and the Harbor Commission. 1. Mooring Transferability. Many others have commented on the proposed rates which the City Manager has recommended. I support those comments. My letter deals with the elimination of the ability of a mooring tackle owner to transfer the right to maintain the mooring to a purchaser of the vessel anchored at the mooring. Section 17.60.040E of the proposed ordinance would terminate the ability to transfer the mooring along with a vessel in 2021. I urge the City not to adopt 17.60.040E. The City is under no obligation to terminate mooring transfers with transfers of vessels. The California Constitution does not compel the City to terminate mooring transfers. Much has been made of the idea that people have been "profiteering" on mooring transfers, i.e., taking money for public property. I doubt that this has occurred in any significant measure. If so, the procedures worked out by the Mooring Master Plan Sub - Committee and Harbor Commission would have solved those problems. In any event, it is not reason to punish 1,000 others who did not "profit'. Mayor and City Council City of Newport Beach November 23, 2010 Page 2 If the City Manager is correct in his assessment that increasing the mooring fees to 14% of the "Index Rate" for slips will be fair market value, then the values of moorings for transfer ought to be reduced to zero or the value of the tackle. I do not expect that this would be the case as the ability to acquire a boat and mooring on the open market has other benefits for both the purchaser and seller. The purchaser gets assurance of the location and the ability to obtain a boat and a place for a boat at the time of the purchaser's own choosing. The seller is able to sell a boat which at times of high slip occupancy might not be sold without a place to moor it. The City is also relieved of an unnecessary administrative burden. Maintaining a waiting list, notifying a person of availability, waiting to see if the person still needs the mooring, notifying the next person, responding to continuous inquiries about availability, all of this requires City resources that are not presently required. The City will also become responsible for mooring maintenance while a mooring is unassigned, an additional cost. Finally, the City has heard clearly from many of its residents who presently have moorings that lack of transferability will destroy all value with which they parted to acquire the mooring rights. Raising rents will affect that value but not destroy it. If the City is not obligated to destroy all value of its residents, why must the City do it? To the mooring owners it seems inescapable that the intent of the City Council must be that its members want to destroy this value. Why you wish to visit such harm on your own citizens for the supposed benefit of some others who are not even known is puzzling. 2. Application of California Environmental Quality Act. The staff report contains a conclusory statement that the adoption of the ordinance and resolution do not require review under the California Environmental Quality Act. I disagree. An action of the City will come within the City's obligation to assess whether or not it may have adverse environmental effects if it is "an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment ". Cal.Pub.Res.Code §21065. It is reasonably foreseeable that as a result of the fee increases, the boats which will be at moorings, particularly shore moorings, will increase in size. My own assessment of shore moorings on Balboa Island notes that most are used for dinghies or other small boats, often less than 10 feet in length. At the present fee of $100 per year, it is quite reasonable to keep a boat worth $500 on the mooring. However, at the increased fee of more than $500 per year, it is likely that the boats which are kept will trend toward the largest size allowed at 18 feet. This will have a clear visual impact. In addition, the shore moorings are tightly packed and the anchoring and flexibility of the shore mooring lines are likely to result in boats which will collide from time Mayor and City Council City of Newport Beach November 23, 2010 Page 3 to time. Also, if shore moorings must be given up to some waiting list of users, homeowners on Balboa Island, Lido Island and Balboa Peninsula will likely find the proportion of shore moorings owned by non - residents will increase, increasing the parking and traffic demands in these locations. As the increases in fees constitutes an activity by the City and it is reasonably foreseeable that this activity will cause changes in use among the 500 shore moorings as well as the more than 700 offshore moorings, the City must at the very least assess whether or not its activity may have an adverse effect on the environment. The City has not done so. Application of Ralph M. Brown Act. Finally, I have been concerned about the fact that on the November 9 and the November 23 agendas, your closed session has calendared "[p]otential litigation over raising mooring fees within the harbor." The question of whether or not to raise mooring fees and terminate transferability are policy questions for the City. They are not the subject of any lawsuit. Although the Ralph M. Brown Act does provide the opportunity for the council to meet in closed session with regard to pending litigation, I do not think that closed sessions for discussion of this mooring issue are lawful. Just because litigation about a policy decision which the City proposes to make is threatened does not mean that the City may exclude the public from its discussions or deliberations. In this day and age litigation about any controversial policy decision will always be a threat. The exception from the open meeting requirement for litigation is to allow for attorney - client communications. However, if the City Attorney has advice concerning the legality or the process by which this proposed mooring ordinance is being advanced, such advice forms part of the policy judgment by which the City Council may act and must be exposed to the public just as much as Mr. Kiff s advice or that of Mr. Miller. The purpose of the exception is to permit the City Council "to receive legal advice and make litigation decisions only; it is not to be used as a subterfuge to reach nonlitigation oriented policy decisions." 71 Ops.Cal.Atty.Gen. 96, 104 -105. It is hard to see what "litigation" decisions the City Council could be considering at this time when the ordinance has not even been adopted. 4. Conclusion. To the extent that I have not focused upon any particular issue, I wish to incorporate in my concerns those comments which the Newport Mooring Association (of which I have been a member for more than 5 years) has submitted to the City as though I has stated it myself. Mayor and City Council City of Newport Beach November 23, 2010 Page 4 It is my sincere hope that the City will not adopt the proposed ordinance and resolution. I urge the City to refer the matter back to its staff to return with an ordinance and resolution along the lines of the "transferability" document which was proposed by the Mooring Master Plan Sub - Committee and Harbor Commission. Sincerely, SHERMAN L. STACE SLS /sh -*1l— )I-23`Gc� ZtheLogCalifornia's Boating & Fishing Mews QP Review Ahead for Newport Boater Fees - pg. 1 and Pg. 3, August 20 - Sept 2. by Ambrosia Brody Source: Daily pilot, LA Times, The Weekly Standard, Cato Institute, Chris Christie, Mike Whitehead, Standard University, News Max, Willie Brown,The Log, US Bureau of Labor Statistics, KFI News, Contra Costa Times, Syracuse Post, Sacramento Bee, and others. With all due courtesy to public employees, Councilman Rosansky and Selich have it backwards. Rosansky and Selich should have said; Public employee expenses have been on the rise, with no end in sight. Revenues have not followed. As the private sector is contracting we as a government are expanding. Instead of rapeing the public more than we already have, especially those wo have less income, less ability to pay, we need to look inward. What, we the public employees, need and must do, is go through the same process as the private sector has had to endure. The public sector employees, State and City, makes 30 to 40% more, and Federal 50% more in wages, benefits and retirement while giving less in return. We, the public employees must cut our wages, benefits and retirements till they are comparable to the private before we consider raising any more taxes or fees up to 400 %. Especially, fees where we provide little or no service. We, the public employees can do that by eliminating the departments whose only job is to create busy work to justify their jobs. We the public employees can do that by eliminating all boards and committees that only exist to make public relations statements and give lobbyists someone to talk to. We the public employee can do that by not turning tax income property into tax liabilities. We the public employee can do that by eliminating all full time positions that require part work including the mayor and city council. We the public employee can do that by cutting our wages by 40 %, our benefits by 40% and move all retirement funds into social security and not retire untill 70 years of age, instead of 42 to 55 years of age as currently practiced. We the public employees can stop building new city halls, parks, or any other unecessaary constructions that are not needed or wanted. We the public employees will stop creating codes and regulations, nor accept Federal Grants, that has it's only purpose to create more public employees. We the public employees will reject anachronistic (HR 413) labor laws designed for the early 20th. Century for a business model that no longer exists. We the public employees will stop using drivel such as what other cities charge, fair market value, to boost tax and fees to support more public employees wages and benefits. We the public employees will stop using little kids and seniors for an excuse to raise tax or fees. We the public employees understand the unfunded pension debt in California is over $500 billion and Nationwide over $3.2 Trillion. We the public employees admit the problems are caused by us and we will be the remedy for the problems we have caused, before we raise any new tax or fees. California, also has two classes of citizens: those who enjoy rich public benefits and those who pay for them. The City is a benefit, retirement and health insurance company that sweeps the streets and supplies police services as a side job. The city has unwise contracts and rigid labor laws and no city should have to choose between it's legitimate functions and paying benefits, health insurance and pension funds. August Lightfoot - Newport Beach, Ca. Message body Page 1 of 1 ?W4 a- Or- L4- . N.B. mooring group responds Sent:Sat 11/20/10 3:07 PM To: Newport Council N0. 1 (mhenn527 @hotmail.com) Nov. 20, 2010 N.B. mooring group responds The Daily Pilot's Nov. 17 article on Newport Harbor boat storage charges does not accurately state the Newport Mooring Assn.'s position. The issue is very simple: The primary use and function of Newport Harbor is boat storage. More than 8,000 boats are stored on the bay. Under state law, all boat owners who store boats on the bay are required to pay their fair share to store their boat on the bay. For decades, the city has collected storage charges from the owners of 6,000 of the boats stored on the bay. The other 2,000 boat owners have been allowed to store their boats free of charge, simply because they are stored next to private docks connected to waterfront properties. There is no law that allows the city to engage in this type of rate discrimination. Since 1980, rate discrimination has cost the Tidelands Fund $40 million, leaving the city without money necessary to dredge and clean the bay. The pending rate proposal perpetuates rate discrimination. It will also result in the loss of more than $2.5 million in storage charges in 2011 alone. The Newport Mooring Assn. Newport Beach Thought you might be interested in this commentary from the Pilot. If this is accurate it would seem to violate the 'equal protection clause.' August http: / /snl28w.sntl28. mail .live.com /mail/RteFrame.htrnl ?v = 15.4.0332.1110 &pf =pf 11/22/2010 Windows Live Hotmail Print Message Page 1 of 2 Mooring fee issue is on deck - by Joseph Serna - Nov. 7, 2010 pg. 1 From: AUGUST LIGHTFOOT (lightfoot228 @hotmail.com) Sent: Tue 11/09/10 11:11 AM To: dkiff @newportbeachca.gov From: Lightfoot To: dailypilot @latimes.com Subject: Mooring fee issue is on deck - by Joseph Serna - Nov. 7, 2010 pg. 1 Date: Mon, 8 Nov 2010 16:09:18 -0800 Nov. 7, 2010 Letter to the Editor "It was a simple kind of analysis, I challenge anyone to upend it," said City Manager Dave Kiff. Mr. Kiff here is your challenge. Public employee expenses have been on the rise, with no end in sight. As the private sector is contracting we as a government are expanding. Instead increasing the tax burden disguised as user fees, especially on those who have less income, less ability to pay, we need to look inward. What, we the public employees, need and must do, is go through the same process as the private sector has had to endure. The public sector employees, State and City, makes 30 to 40% more, and Federal SO% more in wages, benefits and retirement. We the public employees understand the unfunded pension debt in California is over $500 billion and Nationwide over $3.2 Trillion. We, the public employees must cut our wages, benefits and retirements till they are comparable to the private before we consider raising any more taxes or fees. We the public employee can do that by not turning tax income property into tax liabilities like Crystal Cove and Marina Mobile Home Park. We the public employee can do that by eliminating all full time positions that require part work including the mayor and city council. We the public employees can stop building new city halls, parks, or any other unnecessary construction. We the public employees can do that by eliminating all boards and committees that only exist to make public relations statements and create codes rules and regulations that create busywork to justify our jobs. We the public employees will stop using drivel such as what other cities charge, fair market value, to boost tax and fees that have no baring on actual cost of the services provided. Especially when a fair comparison would be, mooring to detached docks in Long Beach, which would indicate about 35 to 45% increase, if any. Not a 300% increase. Especially, when more fees (tax) have little to no connection or service to the user. When the Gaelic Girl, a 38' sail boat was sunk by sea lions, we were told that it was the responsibility of the owner or the public. All those user fees and tax did nothing. Except, for the City to demand more restrictions; We the public employee will, allow one transfer, allow persons to stay till the city want them gone, allow one family a benefit once. etc., etc., etc. We the public employees will stop creating codes and regulations that restrict the privilege and rights of mooring owners and home owners, especially, when the City has no vested interest or public good regarding such restrictions. Except, control and power. http://sn 128w. snt 128. mail .live.com /mail/PrintMessages. aspx ?cpids =4c3 cf6a6- 0ce6 -4ce 1 -... 11/22/2010 Windows Live Hotmail Print Message Page 2 of 2 F I-+ We the public employees will reject anachronistic (HR 413) labor laws designed for the early 20th. Century for a business model that no longer exists. We the public employees will honor the spirit and letter of Prop 13. We the public employees will honor the spirit and letter of Prop 26. We the public employees understand the unfunded pension debt in California is over $500 billion and Nationwide over $3.2 Trillion. We the public employees admit the problems are caused by us and we will be the remedy for the problems we have caused, before we raise any new tax or fees. The City of Newport Beach has two classes of citizens: those who enjoy rich public benefits and those who pay for them. The City has become a benefit, retirement and health insurance company that sweeps the streets and supplies police services as a side job. The city has unwise contracts and rigid labor laws and no city should have to choose between it's legitimate functions and paying benefits, health insurance and pension funds. August Lightfoot PO Box 4251 Newport Beach, Ca. 714 - 318 -5603 Source: Daily pilot, LA Times, The Weekly Standard, Cato Institute, Chris Christie, Mike Whitehead, Standard University, News Max,Len Bose, Willie Brown,The Log, US Bureau of Labor Statistics, KFI News, Contra Costa Times, Syracuse Post, Sacramento Bee, and others. http://snl28w.sntl28. mail. live. corn/ mail /PrintMessages. aspx ?cpids= 4c3cf6a6- Oce6- 4cel -... 11/22/2010 11- 23- lOMooringlssue - 'att.net Mail' MADE Page 1 of 2 11- 23- 10Mooringlssue Monday, November 22, 2010 3:55 PM From: "Brian @ Ouzounian Constructors, Inc." <brian.oci @sbcglobal.net> To: "Keith Curry" <curry k @pfm.com >, "Leslie Daigle" <lesliejdaigle @aol.com >, "Nancy Gardner" <Gard nerncy @aol.com>, "Michael Henn" <mhenn527 @hotmail.com >, "Steven Rosansky" <parandigm @aol.com>, "Ed Selich" <edselich @roadrunner.com>, "Don Webb" <don2we1bb @earth1ink.net> Bcc: "Mark Sites" <marklsites @yahoo.com>, "Doug Wood" <balboawood @yahoo.com >, "Tom Ahern" <swordsman7 @gmail.com >, "Paul Balalis" <p1bala0s @bala1iscorp.com >, "Phil Doane" <TONIDOANE@YAHOO.COM >, "Pete Pallette" <ppallette @aol.com >, "Tom Tyson" <tomtyson @sbcglobal.net>, "Doug Wood" <balboawood @yahoo.com> Dear Mayor Curry and Council Members: I have been told that you will discuss an issue this Tuesday night at the council meeting concerning tripling the rates on moorings and possibly add vessel fees to docks in Newport Harbor. I am a resident of Newport Beach. I am a mooring and dock owner. I am not wealthy. I am trying to retire on a small fixed income. I voted for a majority of you. This is to voice my disagreement and my displeasure with your possible action to increase mooring fees by 3X and add vessel fees for boats that tie to our docks. I have the following points to make and I trust that you will take my comments to heart and that you will NOT vote for the increases as proposed: THIS ISSUE IS A TAX TO THOSE OF US WHO ARE RESIDENTS AND NPB PROPERTY OWNERS -1 AM A SENIOR WHO IS TRYING TO RETIRE, I HAVE DREAM OF TEACHING MY GRANDCHILDREN TO LOVE OUR HARBOR AND BOATING BUT I HAVE GREAT CONCERNS THAT I CAN'T AFFORD THIS TAX AND ACCOMPLISH MY DREAM WITH THEM. -ISN'T THE PROBLEM THE TRANSFER OR BROKERING OF MOORINGS, NOT FOR THOSE OF US SUCH AS I WHO HAVE HAD A MOORING AND DOCK FOR 35 YEARS? -FOR THOSE OF US WHO DO NOT BROKER OUR MOORINGS NOR DOCKS BUT MAINTAIN THEM FOR OUR OWN PERSONAL PLEASURE USE, THIS IS A BURDENSOME TAX NOT JUSTIFIED -THIS IS A TERRIBLE TIME, ECONOMICALLY TO IMPOSE MORE TAXES AS I AM SURE YOU MUST BE AWARE -THE PERCEPTION IS THAT THIS IS AN UNNECESSARY "WITCH HUNT." -MY MOORING IS MAINTAINED BY ME FOR A COST OF ABOUT $250 EACH 2 YEARS, A MANDATORY CITY REQUIREMENT, PERFORMED WITH A SELECT FEW VENDORS WITH NO WAY TO RECOUP THE COSTS. -THE MOORING COSTS ABOUT $1200/YEAR AS POSTED ON THE UTILITY OR WATER BILL, YET IT IS VACANT 10 MONTHS OF THE YEAR. THE CITY ALLOWS HARBOR GUESTS TO MOOR ON OURS FOR A FEE, TAKES ALL THE REVENUE, AND GIVES US NONE OF IT. IN OTHER WORDS, WE PAY ALL THE FEES AND GET NO REVENUE. FAIR? NOW MORE TAXES? -AS I GET MORE INFORMATION ABOUT THE CITY'S FINANCIAL OPERATIONS, IT APPEARS THAT YOU ARE USING THIS ISSUE AND US RESIDENTS TO SUPPORT OVER RUNS FOR OTHER DEFICITS, INCLUDING THE NEW CITY HALL. IS THIS TRUE? -IS THE CITY PLAYING A SHELL GAME OF REVENUE NEEDS ON THE BACKS OF US SENIORS AND RESIDENTS? http: / /us.mc81 I. mail. yahoo. com /mc /showMessage ?sMid =5 &fi d= Sent &filterBy = &. rand =... 11/22/2010 November 23, 2010 Dwight Belden Fleet Captain and Director Newport Harbor Yacht Club 720 West Bay Avenue, Balboa CA 92661 (949) 500 - 1110 nhyc@msn.com Section 5.B.3.f of proposed Mooring Ordinance Minor changes based on the last redline: Line 5: Delete the last 3 words of that line " The boundaries of ". Line 6: Capitalize the T in "these" to start the sentence. Line 7: add the word "by" after "depicted" The change in lines 5 and 6 will allow a mooring field to change shape without increasing in size. This will allow the ordinance to remain pliable to accommodate changing navigational needs in critical channel areas over time. We have seen vessel growth in length and beam and governmental entities may need to make minor boundary changes in the future. "REC-IVE AFTERAGENDA - ,PR, Mum, NEWPORT BEACH CITY COUNCIL 11/19/10 PLEASE REVIEW MONTHLY FEES CHARGED BYCE,JTHER WEST COAST HARBOR DEPARTMENTS. YOU WILL HAVE TO ADMIT THAT YOUR PROPOSED FEE INCREASE IS A FOOLISH AND DISCRIMINATORY MOVE. I URGE YOU TO RECONSIDER YOUR PROPOSED FEE INCREASE AS IT IS CLEARLY OUT OF LINE. SINCERELY GERALD W. JUERGENS Mr. Mayor and Newport Beach City Council ; - -- jl /ZVly City Hall f 3 Newport Beach, CA 92660 l Re: Proposed mooring fee increase Dear elected representatives, 0- Let me begin with congratulations on your recent successes at the voting booth and a reminder you serve at the pleasure of your constituents, the good citizens /taxpayers of Newport Beach, many of whom are boaters. That said, let me say that the City of Newport Beach (CNB) is lucky to have us, the Boating Community! We are the lifeblood of this city. Our being here provides CNB with promotional material that encourages tourism and tourist dollars as well as retail and real estate profits. You are at a crossroads and have the opportunity to be leaders and standout amongst other Southern California harbor cities, with an altruistic vision of your "revenue source ", the boating community. They are the soul of Newport Beach. • Being seen as a boater and marine industry friendly city could work very much in your favor internationally. Be visionaries and see us as the asset we are. You have the opportunity to foster the existing community, encourage future growth and subsidize Newport's heritage of boating. • Stop the creative zoning proposals that put this community at risk. Do tourists come here to spend the day on the bay or at a cliff -side park viewing condos? No, they do not! We need chandleries, marine hardware and software facilities, mechanical specialists, shipyards and all the other boating related businesses on Newport Harbor's shores, not in Costa Mesa or beyond. You'll loose the reason many people travel from all over the world to CNB to spend their hard earned money if you don't take this opportunity to appreciate what you already have, respect, and reward those that have made possible the quality of life we have available today. • With the distinction of the city with the highest priced real estate in the nation, CNB can afford to be equitable and act with caution before establishing fee increases that are based on manna slip fees established by land -based marinas with outrageous land values. Any percentage of those slip fees is most certainly a very inflated base for pricing a mooring fee. • Balancing the budget is essential. However, your "ad hoc committee" diminished it's own recommendations because they didn't want to include anyone that may have a "conflict of interest" amongst its members. How absurd is that to expect a well- rounded view of all the possibilities from only three council members, without input from any of the stakeholders. • Stepping back, taking some time and researching all the sources of additional revenue with valuable input from long and short time residents, business people (including those involved in the marine industry), Newport Mooring Association (NMA) and homeowner representatives before loading higher fees on mooring lease holders seems prudent. You may actually be able to lower fees. If, however you do decide to go ahead with the proposed fee increases there is an issue you must consider that has not been addressed by the council, a CNB buy -in. • You can't just take and not be expected to give something for what we would additionally contribute. The only mooring amenity available to us now is pump -out stations. That's hardly an amenity, more a requirement for our harbor's health. • Consider, there is nowhere we can go to wash down and clean up our boats or ourselves. There are no dry storage areas for dinghies; limited short-term and no long -term in -water storage; no launch ramps except the Dunes and no mooring lease- holder parking. These are things we need. The harbor has not been dredged for 70 years so dredge it with the help of Federal funds and save for future dredging needs. You also want us to allow our leased moorings to be rented to transient boaters by CNB with none of the income going to the lessee. We are required to maintain safe ground tackle so we pay for inspecting, servicing and replacing when necessary, the mooring balls, chains and hardware every other year (over $1,000 for me last year). Where is the fairness in that? If you want the income from my mooring while I'm away than give the proceeds to me unless you want to purchase my ground tackle and maintain it yourself. o You can save valuable dollars going to Orange County Sheriff's Department by limiting the areas Harbor Patrol Officers cruise. If you truly want to continue exempting the private dock owners from paying their fair share of boat storage, while raising fees for the moorings than logic demands you minimize Harbor Patrol duties in the areas of the Rhine Channel, North Lido /PCH Channel, Dunes /Back Bay, Linda Island, Harbor Island, west end Balboa Island/Bayside Drive and the harbor entrance, everywhere on -shore or off -shore moorings are not present. Transferability is a thom in your side so I suggest only two options: o Family passing a lease to family. Not dead family! It makes little sense to require a lessee to die before transferring a lease to a family member. With a prolonged illness or limited mobility, a boater may be unable to access a moored boat for years before passing away. All that would do is fill our bay with derelict boats. I want my boat to go to a family member before years of sitting unattended. Let me transfer it to family whenever I am unable to utilize it. If the family does not want to continue the lease they can sell their boat within a few months and return the mooring to the city where it can go to the first in -line on the wait list. The wait list should still be a viable source of interested lessees. Those individuals believed in the first- come - first -served concept they were promised and should not be let down. Transferability should not be a profit making enterprise for the leaseholder or the CNB. Charge a $12 transfer fee and the deal is done! I am still waiting for my name to come up from 1976,34 years. o Individuals sell their boat as a package deal that includes the mooring lease. Requiring the seller to submit a current survey showing the boat's true value to the Harbor Commissioners for approval would take the profit taking out of the process. For those that paid a premium for their lease, let them recoup the original purchase price at that time and never again. o I believe if you stop the profit taking now and monitor the transfers more closely, profit taking will not be an issue in the near future. The wait -list will again become viable. My recommendation to you as CNB "Leaders" would be to take a step back and: o Develop a vision of this fine city that opens your eyes to an opportunity to act as stewards of a unique resource by fostering the existing, encouraging growth in and subsidizing the boating community and marine businesses on this unique harbor we love. o Take your time researching equitable solutions from all stakeholders before raising fees. o Consider my transferability simplification. o Avoid the temptation to balance the budget on the back of those in the boating community that can afford it least. Respectfully yours, Ross McElfresh Resident CNB, Mooring lease holder November 21, 2010 City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Curry, 9 I am requesting that you vote to oppose the proposed mooring ordinance on Nov 23, 2010. The Newport Mooring Association and others have made real valid points against this as to its fairness, tripling of fees, not allowing transfers as have been allowed for many decades, what services are actually provided to moored boats in return, etc. I would like to 'show you that there is a more cultural and traditional objection to this proposal. You see, I am a 65 year old native and always been a resident of Newport Beach. In the 50's my dad (Donovan Gilmore Aakhus /founder of Lido Doors Inc. 1951) and I would go down to the docks and shipyards and dream of boating and owning a bay front home with a boat in front of it. Well, neither one of us could afford that bay front, but we could afford a boat and mooring. We both have been able to raise families with a love of the bay, and boats, thanks to the mooring transfer policy and reasonable fees that have been in effect for 50 to 60 years or greater. I fear that something will be lost in our "harbor town" if these practices are drastically changed. Yes, I have taken my kids down to the docks and boatyards and have had similar dreams with them. However, will they be able to continue boating as it has been done for the history of Newport Harbor, or will all of this be too expensive so that none of our children (yours included) will be able to also enjoy boating in our beautiful Newport Harbor? Please vote against this unfair proposal. Thank you, Donovan E. Aakhus, Capt. Delta Airlines, Ret. Newport Harbor High School, class of 1963 4509 Surrey Drive Corona del Mar Mooring permit holder 9 I..HAKLES tl. LLB WINq r L.L. r- (714) 318 -3137 cell "' 1801 Windsor Lane (714) 544 -4136 fax Santa Ana, CA 92705 chlewis @sbcglobal.net ru t: ,'o November 16, 2010 Dave Kiff, City Manager 3300 Newport Blvd, Building B Newport Beach, CA 92663. Re: Newport Harbor Mooring Fee Increases and Transferability Changes Dear Mr. Kiff, I am writing to you to urge reconsideration of the proposed changes in mooring fees and transferability going before the City Council on November 23. The current proposal will penalize mooring permit holders by unfairly increasing fees and villainizing us by having transfer privileges severely limited. As a holder of two mooring permits in the harbor (one offshore for my boat and one on -shore for my dinghy), I paid above - market prices for both boats in order to have the owner transfer the moorings to me - -an accepted and well known practice supported for decades. I also accepted all the challenges that come with not having a slip, including no power, water, parking, docks to load and unload for trips, protection from boats running into mine, and more frequent bottom painting due to sun exposure. Boats on moorings are enormously hard work to use and have many other added costs and challenges. At the time of my boat purchases, I read the proposals and language that were being developed related to mooring changes and felt that fee increases and the transferability plan were both reasonable. The current (and surprising) plan going before the council on the 23r1 includes unreasonable fee increases and unnecessarily reduces the "value" of my moorings to perhaps nothing by eliminating transfers. Many other options and models exist which would increase fees for the city (such as transfer fees) and not wipe out mooring values. When I purchased my boats, I had no intention of selling or trying to make a "profit" on my moorings- - and certainly did not expect this type of unfair penalty. I maintain tidy boats, actively participate in the local retail economy (gas, boating supplies, restaurants, boat services, and more), and make every effort to be a good neighbor when using my boat. When did I become some sort of black market bad guy? I urge you to reconsider the current fee proposal and return to the transferability plan previously on the table. Clearly mooring holders will bear an unfair burden through these changes -- especially when one learns about all the private docks and piers that will have no such transferability penalties or even have to pay usage fees for having a boat in our public harbor. Sincerely, Chuck Lewis cc Newport Beach City Council Newport Mooring Association Keith D. Curry Mayor City of Newport Beach 3300 Newport Blvd Newport Beach, Ca 92663 Dear Mr. Mayor, Christopher Bliss 24101 Gourami Bay _ Dana Point, Ca 92629 949- 493 -3815 I attended the city council meeting last Tuesday, November 90' and am very concerned about the proposed changes under consideration regarding the current mooring situation in Newport Harbor. I have been a mooring lease holder for twenty years and fear that if the changes take place that the city has proposed, I will be forced to sell my sailboat and give up the sailing lifestyle that my family and I have enjoyed for so many years. Listed below are a few points that may have been brought up at the meeting, but that I would like to emphasize for your further consideration: The current system (although it may not be perfect) has worked for nearly fifty years, and has in fact been condoned by the city. I distinctly remember that when I bought my mooring, I checked fast with the Harbor Department and was told, step by step, by one of the deputies exactly how to proceed with the process of becoming a partner on the title of the boat on the mooring I was about to purchase, then after the transfer happened, to take the other person off the title, and then I would become the sole owner of said boat and mooring. I, along with every other mooring owner, paid a substantial sum of money for the opportunity to have a place to keep my boat which was more affordable than a prohibitively expensive slip, with the understanding that one day if we ever needed to give up boating, for whatever reason, we could get the initial investment back. This is in effect a bit like leaving a really large security deposit on an apartment rental, with the understanding that you will get it back when you leave. The city proposes that moorings should be allowed to be transferred only one more time. This actually means that the current owners will NEVER be able to sell their moorings because who in their right mind is going to buy a mooring for substantial money if they themselves will never be allowed to sell ?! I believe that it is mean- spirited and grossly unfair, after the city has gone along with this process for so many years, to suddenly change the rules so that mooring owners can no longer transfer their moorings. This loss of "equity" that all mooring owners will incur, along with nearly tripling the yearly fees is a double - whammy that I feel will force hundreds of mooring owners to simply give up boating entirely. I know that this will be true in my case. Someone from the NHMA proposed an idea that I believe could be agreeable to the city and to the mooring owners: enact a transfer fee so that every time a mooring is transferred, the city collects a percentage (perhaps 5 or 10 %) of the sale price based on the estimated value of the mooring. This is a reasonable idea that I think everybody could live with. I strongly endorse this idea, and hope that the city council will give it due consideration. At the beginning of the meeting, several financial charts were shown that illustrated the budget deficits due to the high costs of harbor maintenance and dredging. It seems to me that the people who own and live in the hundreds of ultra high -end waterfront homes with private docks on the bay are the ones in the best position to contribute to these costs, not the mooring owners, the vast majority of whom are certainly not wealthy. Many of the private dock owners rent their dock space for thousands of dollars, use the tidelands in exactly the same way that the mooring owners do, but have not been threatened with huge fee increases, although they could probably afford to pay them. This really seems like just another example of "screw the little guy." Newport Harbor is a beautifid gem that is famous all over the world. All the people who live here benefit from being near this beautiful harbor, and it is largely the sailing and boating activities that come to mind when people envision Newport Harbor. Please do not approve the proposed draconian changes regarding mooring ownership, as it will adversely affect so many people. Thank yo C sthrY oph /Bliss S all ate: November 15, 2010 Mayor Keith D. Crory City of Newport Beach 3300 Newport Blvd, Newport Beach, CA 92663 Mayor Pro Tern Michael F. Henn City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Councilmember Steven Rosansky City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Councilmember Don Webb City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Re: NMA's Request to: Councilmember Leslie Daigle City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Councilmember Edward D. Selich City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Councilmember Nancy Gardner City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 1. Place NAM s Enclosed Mooring Rate Proposal on the November 23, 2010 City Council Agenda 2. Table Action on the Rate Proposal Currently Before the Council, Pending a Full Review of NMA's Proposal Dear Mayor and City Council: On behalf of the Newport Mooring Association ( "NMA "), we would like to thank each of you for the patience and understanding you have demonstrated in seeking a fair and reasonable solution to pending Harbor Fee issues. We have read and listened carefully to the proposals of the City Manager. We have considered the 1 Newport Mooring Association • P.O. Box 1118 • Newport Beach, CA 92659 I Mayor Keith D. Curry and City Council Re: Newport Mooring Assn. Rate Proposal Page 2 November 15, 2010 legal memoranda prepared for Council by the City Attorney. We have listened and understood the comments of various Council Members and the City Attorney. And . most important, we are fully cognizant of the significant financial commitment that the City must make to preserve and maintain Newport Harbor for public use as a navigable and ecologically sound body of water. While it often sounds as though the NMA is at odds with the City on these issues, a review of NMA'a attached rate proposal demonstrates that NMA is largely in agreement with the City Manager and the City Attorney on the fundamental concepts surrounding Harbor Fee issues. NMA also believes that there is a simple and comprehensive solution that better resolves the projected harbor revenue short fall, and which fully addresses the legal and public policy concerns arising from the exclusive, private use of public property that is the Tidelands. The ongoing debate over mooring rates leads to one inescapable conclusion: The only viable solution to projected revenue short falls is a storage charge for all boats stored on the Tidelands. The storage charge (or "rate ") should be paid by the owner of each boat stored on the Tidelands (although in the case of a commercial or City operated marina, the storage charge is presumed to be collected as part of the slip fee). Boat storage is the primary use of the bay. On any given day, over 8000 citizens are storing a boat on Newport Harbor. In contrast, only several hundred citizens are actually boating on the harbor at any one time. The law requires the City to obtain fair storage charges from the owners of all boats stored on Newport Harbor. Rate discrimination is costing the public's Tidelands funds over $3 million per year. NMA's attached proposal, if adopted, will generate roughly $4 million in annual Tidelands revenue starting in 2011, increasing annually based on the Consumer Price Index. The other proposal currently before the Council will generate only $910,000 in 2011, escalating in annual increments to $2.1 million in 2015. And importantly, NMA's proposal does away with decades of rate discrimination on the bay, while the competing proposal perpetuates the problem. 01 Mayor Keith D. Curry and City Council Re: Newport Mooring Assn. Rate Proposal Page 3 November 15, 2010 ACTION REQUESTED: NMA respectfully requests that Council do the following: 1. Table the mooring rate proposal currently before Council, and (if necessary) remove it from the November 23, 2010 Consent Calendar; 2. Place NMA's attached proposal on the November 23, 2010 agenda as "Current Business," and take public comment; 3. Schedule NMA's Proposal for a subsequent Study Session and for public comment at that time•, and 4. Work up both competing proposals as necessary (in subsequent study session(s), and/or as Current/Continued Business), in order to allow both proposals a full and transparent review by Council and the public, before Council votes on either proposal. On behalf of the Board of the Newport Mooring Association, we again thank you again for your time and consideration. Very Truly Yours, #411-� BILL MOSES, Secretary Newport Mooring Association Enclosures (1) Rate Proposal; (2) 11.15. 10 Press Release cc: David Kiff, City Manager Leilana I. Brown, City Clerk David R. Hunt, City Attorney cc: Copy sent Via Overnite Mail to Personal Addresses of all Public Officials 3 I NEWPORT MOORING ASSOCIATION A NON - PROFIT ASSOCIATION OF MOORED BOAT OWNERS NMA's RATE PROPOSAL FOR TIDELANDS BOAT STORAGE CHARGES The Newport Mooring Association respectfully requests that the City of Newport Beach set annual storage rates for all classes of boats stored on Newport Harbor. This proposal has three parts: 1. NMA's Rate Proposal for All Boats Stored on the Tidelands 2. Estimates of Tidelands Revenues under NMA's Rate Proposal 3. Governing Concepts Supporting NMA's Rate Proposal I. LAMA'S RATE PROPOSAL FOR ALL STORED BOATS: A. Off -shore Moorings: $30 per foot per year B. Shore -Tie Moorings: $15 per foot per year C. Boats Tied to Private Piers: $30 per foot per year D. Commercial Marinas and City Operated Yacht Basins: Included in Slip Fees and Marina Rent E. Administrative Fees: Based on actual cost; charged in addition to storage charges 1 II. ESTIMATE OF TIDELANDS REVENUE FROM STORAGE CHARGES The annual revenue estimate for NMA's proposal is $3,591,000 per year starting immediately in 2011, exclusive of administrative fees. With administrative fees for permits and harbor patrol enforcement costs, etc., NMA's proposal generates roughly $4 MILLION PER YEAR in Tidelands revenue. Further, it can be indexed to the Consumer Price Index to stay current. NMA's revenue estimate is based on the following: A. Off -shore Moorings: $30 per foot per year: Estimated Annual Revenue: $900,000 Gross Footprint: Assuming the current vacancy rate continues, the City permits 750 off -shore moorings. The estimated average "footprint" for each of these moorings is 40 feet. The total "footprint" of the Tidelands occupied exclusively by offshore moorings is therefore 30,000 feet [750 boats X 40 feet = 30,000 linear feet of total "footprint. "]. Total Annual Storage Charge Revenue: Annual storage charge revenue for off- shore moorings will be $ 900,000 [30,000 linear feet of "gross footprint" X $30]. B. Shore -Tie Moorings: $15 per foot per year: Estimated Annual Revenue: $108,000 Gross Footprint: Assuming the current vacancy rate continues, the City permits 400 on -shore moorings. The estimated average "footprint" for each of these moorings is 18 feet. The total "footprint" of the Tidelands occupied exclusively by boats stored at shore moorings is 7200 feet [400 boats X 18 feet = 7200 linear feet of total "footprint. "]. Total Annual Storage Charge Revenue: Annual storage charge revenue for shore moorings will be $108,000 [7200 linear feet of "gross footprint" X $15]. 2 C. Boats Tied to Private Piers: $30 per foot per year: Estimated Annual Revenue: $2,583,000 Gross Footprint: NMA estimates that there are roughly 2460 boats tied to private piers. The estimated average "footprint" for each of these boats is 35 feet. The estimated total "footprint" of the Tidelands occupied exclusively by boats stored at private piers is 86,100 linear feet [2460 boats X 35 feet = 86,100 linear feet of total "footprint."]. Total Annual Storage Charge Revenue: Annual storage charge revenue for boats tied to private piers will be $2,583,000 [86,100 linear feet of "gross footprint" X $30]. D. Commercial Marinas and City Operated Yacht Basins: Included in Slip Fees and Marina Rent Again, NMA assumes that the rent paid by commercial marinas to the City and the slip rent collected by the City in the yacht basins includes the "fair value storage charge" for each boat stored on the Tidelands occupied by the marina. Therefore, NMA provides no "breakout" figure for storage charges of boats stored on Tidelands under the control of commercial and City marinas. III. OVERVIEW OF GOVERNING CONCEPTS: A. NMA's Proposal Boosts Tidelands Revenues More than Any Other Proposal Before the City Council First and foremost, NMA's proposal raises the revenue stream from Tidelands boat storage significantly more than the mooring rate increase proposed by the City Manager. The annual revenue estimate for NMA's proposal is $3,591,000 per year starting immediately in 2011, exclusive of administrative fees. With administrative fees for permits and harbor patrol enforcement costs, etc., NMA's proposal generates roughly $4 MILLION PER YEAR in Tidelands revenue. Further, it can be indexed to the Consumer Price Index to stay current. 3 In contrast, the proposal that City Council has before it generates only $910,000 in 2011 including administrative fees, less than 25% of NMA's proposed revenue stream. By 2015, this proposed rate scheme will generate only $2.1 million including administrative fees, less than 50% of NMA's proposal (assuming NMA's proposed rates are tied to the CPI). B. NMA's Proposal Puts an End to Decades of Rate Discrimination As demonstrated above, rate discrimination is costing the public's Tidelands funds over $3 million per year. The law requires the City to obtain fair storage charges from the owners of all boats stored on Newport Harbor. NMA's proposal also resolves nearly all of the competing concerns that have been expressed regarding mooring rates, in a fair, lawful and politically neutral manner that does not favor the owner of Any boat, no matter how or where the boat is stored on the Tidelands. C. Boat Storage is the Primary and Prevalent "Use" of the Granted Tidelands: On any given day, there are over 8000 private boats stored on waters of the Newport Harbor Tidelands. The boats are stored in marinas, at private piers, and at City permitted moorings. In contrast, actual boating on the Tidelands is typically limited to a few hundred boats (or less) at any given time. Accordingly, boat storage is the primary, and the most prevalent "use" of the Tidelands. D. The City Must Obtain "Fair Value" for the Storage of ALL Boats on the Public Tidelands: The City is obligated by law to obtain "fair value" for any private "use" of the bay that excludes the public. It goes without saying that a boat lawfully stored on the Tidelands uses a "footprint" of the Tidelands to the exclusion of the public. Thus, all private yacht storage on the Tidelands is an "exclusive use" of public property. As a result, the City is required to charge the owner of each stored boat "fair value" for the "footprint" of the Tidelands occupied by the stored boat. 4 NMA refers to this concept generically as a "storage charges," and to the amount charged for storage as the "rate." But, as pointed out by the City Attorney, the storage charge can also be viewed as a "fee" for a license to exclusively occupy a small part of the Tidelands, or simply as "rent" for the exclusive use of public property. In all of these cases, the City acts as the "proprietor" of the Tidelands, in effect "renting" public property to private individuals for "fair value." E. NMA's Proposed Rate is the "Fair Value" of the Tidelands "Footprint" Occupied by Each Stored Boat. Rates should be set by determining the "fair value" of the "footprint" that a stored boat occupies exclusively on the Tidelands. 1. Fair Value of the "Footprint" of Open Water (or "Offshore') Moorings: $30 per foot per year starting in 2011. The fair value of open water moorings (as opposed to shore -tie moorings) has been determined with reference to mooring rates charged in other similar harbors in Southern California. This remains the best and only known reliable means of determining the fair value of a "footprint" of open, navigable water in the Tidelands. The rate is currently $20 per foot per year, based on a 1995 fair value determination by City Council. Even though $20 per foot is well above the regional average for open water mooring rates, the $20 per foot determined in 1995 is likely within the City's discretion, as would be a CPI - indexed rate increase to roughly $30 per foot per year starting in 2011. 2. Fair Value of the Footprint of Boats Tied to Shore Moorings: $15 per foot per year starting in 2011. Because shore moorings are largely unique to Newport Harbor in Southern California, there is no reliable "comparative rate analysis" for the value of the "footprint" of boats tied to shore moorings. "Footprints" at shore moorings typically do not occupy open, navigable waters. For this and other reasons, the City has estimated the "fair value" of shore moorings at 50% of "offshore" moorings. This 5 appears to be reasonable, and therefore within the City's discretion. Beginning in 2011, the rate for storing a boat at a shore mooring should be $15 per foot per year. 3. Fair Value of the Footprint of Boats Tied To A Private Pier: $30 per foot per year starting in 2011. Arguably, Tidelands that can be annexed via a pier affixed to the adjacent upland should be more valuable than Tidelands accessible only by boat (such as the "footprint" of an off -shore mooring). Nevertheless, NMA proposes that the owners of boats stored on Tidelands adjacent to private piers pay the same storage charge as the owners of boats tied to offshore moorings: $30.00 per foot. PRC 6503.5 Does Not Apply: Importantly, the prohibition on charging "rent" for private piers (Public Resources Code section 6503.5) does not apply to the "footprint" of the Tidelands occupied by a boat tied to the pier. Rather, the "rent free" provisions in PRC 6503.5 apply only to the "fixed facility" that is the "recreational pier" itself. There is no law that allows or even encourages the City to grant boat owners the right to store their boats an here on the Tidelands free of charge. (See NMA's 11.9.10 memo to City Council detailing this point.) 4. Fair Value of the Footprint of Boats Stored in Marinas on the Tidelands: Included in Slip Rent Owners of boats stored at commercial and City owned marinas pay rent for the slips. This rent makes its way to the City directly (at City owned Marinas), or indirectly (in the form of lease payments to the City by commercial marina owners). Based on current slip rates on the Tidelands, NMA assumes that the City is receiving fair value for the Tidelands "footprint" exclusively occupied by each boat stored in a slip at a commercial or City -owned marina. Continued on next page. n E. Storage Charges are NOT Administrative Fees. Both Can and Should be Charged: The storage charge is separate and apart from, and in addition to, administrative fees associated with pier permits and mooring permits. To comply with Article XIII of the Constitution, these administrative fees should be based on the actual cost to administer private piers and the mooring fields. These permit fees are paid by the permit holder (which, in the case of a private pier, is often a different person than the owner of the boat(s) tied to the private pier). The City is currently calculating and re- setting these administrative charges. Accordingly, the City can update these administrative fees in conjunction with the setting of a comprehensive rate schedule for all Tidelands boat storage. F. NMA's Proposal Avoids Unlawful Gifts of Public Property and Rate Discrimination: The proposal outlined above eliminates concerns regarding gifts of public property currently being made to thousands of boat owners who exclusively occupy a significant "footprint" on the Tidelands free of charge (and in apparent violation of Article XVI, section 6 of the California Constitution). And it eliminates concerns about "discriminatory rates" for the storage of boats on the Tidelands, as prohibited by section 1(d) of the Tidelands Grant. G. Enforcement Will Be Manageable: All boats stored outside of commercial and City owned marinas would require a "storage permit." In addition to the applicable annual "fair value" storage charge, the storage permit holder would pay an administrative fee to cover the actual cost of issuing, tracking, and enforcing storage permits. Each boat with a storage permit would be issued an easily identifiable sticker that bears the individual permit file number for the boat to which the sticker must be affixed. Storage permits would be issued by the Harbor Resources Department. The Harbor Resources Department storage permit file would state the authorized location for the storage of the boat on the Tidelands, identify the boat owner /permit holder, and state the amount paid and the "class" of storage being charged (e.g., off -shore mooring, private pier, etc.) Mooring permits would double as storage permits. Boats identified by the Harbor Patrol as being stored without a permit could be issued a "parking ticket" akin to a "fix it" ticket. Boat owners could "fix" the ticket by simply obtaining a storage permit for their boat. H. Transferability and the Commercial Use of Private Piers: NMA's rate proposal disposes of all critical issues except two: (1) Mooring permit transferability; and (2) Private pier owners' operation of "mini- marinas" (i.e., the rental of slips and tie -ups at private piers for thousands of dollars per year, under which private pier owners make money "renting" the public's Tidelands). 1. Re: Transferability: NMA believes the transferability issue should be resolved separately, after the City establishes a fair and lawful rate structure for all Tidelands boat storage charges, and after Council has had time to consider the extensive work up on this issue performed in 2008 and 2009 by the Harbor Commissioner. NMA is respectful of the City Attorney's opinion here, and believes that a lawful solution to the transferability issue can be reached along the lines of the proposed Transfer Ordinance developed last year with the Harbor Commissioner. 2. Re: Private Pier "Mini- Marinas: " NMA has no position on private pier owners' operation of commercial mini - marinas, and this proposal is not intended to address that issue. The City has already indicated its intent to examine this issue separately. NMA agrees that this issue (like the transferability issue) is distinct from the rates issue covered in this proposal, and should therefore be dealt with separately, as well. 9 NEWPORT MOORING ASSOCIATION A NON - PROFIT ASSOCIATION OF MOORED BOAT OWNERS FOR IMMEDIATE RELEASE: FROM: Newport Harbor Mooring Association RE: Mooring Rates (and Mooring Transfers) DATE: November 15, 2010 NMA represents the owners of over 1000 boats tied to moorings in Newport Harbor. NMA appreciates the growing public interest in mooring rates issues now before the Newport Beach City Council. NMA's primary concern is with the annual fees that the City of Newport Beach charges the owners of moored boats to store their boats on the public waterway in Newport Harbor. These fees already exceed the annual storage charges for moored boats in other similar Southern California harbors. NMA is also concerned that the current rate structure in Newport Harbor unlawfully discriminates against the owners of moored boats. Most boats stored in Newport Harbor are tied to private docks (known as "private piers ") in front of waterfront properties. The City allows the owners of boats tied to private piers to store them on the bay free of charge. This appears to be an unconstitutional gift of public property to the owners of boats stored at private piers. At the same time, the City charges the owners of moored boats an average of $800 per year to store their boats on Newport Harbor. The City's decades -long rate discrimination against moored boat owners, and in favor of the owners of boats tied to private piers, is prohibited under state law (section 1(d) of the Tidelands Grant). Boat storage is the primary use of the bay. On any given day, over 8000 citizens are storing a boat on Newport Harbor. In contrast, only several hundred citizens are actually boating on the harbor at any one time. The law requires the City to obtain fair storage charges from the owners of all boats stored on Newport Harbor. Rate discrimination is costing the public's Tidelands funds over $3 million per year. NMA has submitted a proposal to the City Council establishing lawful, non - discriminatory rates for the owners of all boats stored on the bay. NMA's proposal, if adopted, would immediately raise Tidelands revenues from boat storage (excluding revenue from commercial and city -owned marinas) from $800,000 per year to roughly $4 million per year - -- simply by requiring the owners of all boats to pay fair value for the right to store their boat on the public waterway. Under NMA's proposal, all boat owners who benefit from storing their boats on Newport Harbor would pay their fair share of the rapidly rising cost of maintaining the bay as a navigable and ecologically sound public waterway. 1 NMA urges the Newport Beach City Council to put NMA's proposal on its November 23, 2010 agenda, and to ensure full and complete participation from all boat owners in keeping our harbor clean, and open to the boating public. Finally, NMA takes no position on the value of a mooring permit. A mooring permit allows a boat owner to store a boat at a designated mooring on the public waterway for one year. Historically, these permits have taken on value when transferred privately from one boat owner to another. Although the City of Newport Beach has been aware of the "transfer value" of moorings for decades - -- even auctioning vacant moorings itself on occasion - -- the City retains the right to regulate the transfer of mooring permits. NMA is concerned that the City is now relying on the private transfer value of mooring permits to justify ongoing rate discrimination against the owners of moored boats. NMA's rate proposal puts an end to decades of rate discrimination on the bay, while at the same time allowing the City to regulate mooring transfers. Mooring transfers and boat storage rates are separate and unrelated issues, and NMA urges the City to treat them that way. CONTACT INFORMATION: NMA Secretary Bill Moses c/o NMA Counsel Greg Hatton 949 - 474 -4222 Harbor Charges: Moorings Revised Proposal Tuesday, November 23, 2010 Newport Beach City Council What we'll cover Goal: Fair Market Value Other Committee Principles Recommended changes resulting from past meetings' input (and correspondence). Rate Proposal, Transfer Proposal Some Q &A Recommended Actions Overall Goal,* fair MarketV;)Iijp Fair Market Value (FMV) Moorings are not at FM V now. How do we know? The market tells us. Significant private market for mooring permit transfers. Rates in other harbors (mooring:berth ratios) Lowest found is 14 %, High is 30 %+ Current rate in Newport Harbor = 5% What is Fair MarketValue? 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. What else is based on FMV? Beacon Bay Residences (72 homes) Balboa Bay Club Balboa Island Ferry American Legion Marina Lease Basin Marine Shipyard Galley Cafe Harbor Marina Harbor Island Residential Leases Lido Isle Community Assn (Marina) Bahia Corinthian Yacht Club Is the City's "14V Proposal FMV? We believe so — here's why: Review of other harbors' mooring:berthing ratio — 14% is the low side. Cap Rate Analysis (40' mooring) shows that even the City's 2015 amount may be lower than FMV: • Take an investment of $33,875 (mooring transfer price) A revenue /cost of $800 /year. Cap rate of 4.4% • Value = $2,290.50 (($33,875 0.044) + $800) • City's Proposed Rate in 2015 = $2,107.00 Moorings — Committee Principles Outcome should: Be based on Fair Market Value. Be responsive to market conditions — rates up or down based on same. Be fair, reasonable, and legally defensible. Be phased in over time. Improve accessibility to boating in the Harbor. Result in a charge that is annually updated. Harbor has important projects and amenities to fund in the coming years. Listening from Last Meeting Committee proposed these changes based on last meeting: Modified selection of Marina Index Reflects meeting with BYB stakeholders last week. Results in slightly lower rates. Modified transfer provisions to extend time Existing permits - 2x in the next 10 years Wait list permits — no ability to transfer Listening from I ast MP-P-ting Committee proposed these changes based on last meeting: City to pay FMV for tackle when mooring permit returned to the wait list Reiterated: Staff to regularly review mooring status annually. Make the Interest List function, and function quickly. City -held permits (five) to go to Interest List quickly. RATE PROPOSAL Rate Proposal Proposal: Offshore mooring permits Set at 14% of an average of mod -low marina slip rates in the harbor (they are now at about 5 %). Onshore Mooring permits Half of offshore pricing. Implement increase over five periods. When "caught up" should catch up to 14% of slip rates in 2015. Review annually to ensure that pricing is appropriate. Consistent with OC Grand Jury's recommendation that: (mooring permits be) fair market value ... e.g., based on a percentage of the cost of a slip. Proposed Rates (40' offshore mooring) Mooring.-Slip Ratio Monthly Increase Annual Increase Note: Prices not adjusted for inflation, up or down. Previous rate proposal: • Ended at $2,449 • Increase was about $320 /year Proposed NH Marina Index (revised based on BYB discussions) Slip Bayside Harbor Lido Yacht Newport Port Average Ardel I Anchorage Swales Lengths Village Marina (Bellport) Dunes Calypso Rate 30' $26.17 $24.00 $19.50 $29.00 1 $26.00 $17.00 $23.61 40' $33.13 $37.50 $30.00 $39.50 $30.00 $18.00 $31.35 50' 1 $37.50 $35.90 $41.00 $31.50 $42.00 $30.00 $20.00 $33.99 NH Marina Index — 7 Marina Locations Rate-Setting Process Survey the Index Marinas, take an average rate for all Mooring lengths. In 2011, multiply by 7.1 In 2012, by 8.8 %; In 2013, by 10.5; etc. Harbor Resources Manager evaluates market conditions annually, recommends changes if necessary. Harbor Resources Manager evaluates index marinas annually, makes changes if necessary. Other Rate Suggestions NMA suggestions: Adjust by Consumer Price Index since 1996 (LA- Riv -OC) 40' mooring would go to $1,1 13.77 /year. • Higher- than City's 201 1 proposed rate. ($1,063) Go to $30 /LF /Yr for offshore and $15 /LF /Yr for onshore. 40' mooring would go from $800 /year to $1,200 /year. • City's proposed 201 1 rate = $27 /LF /Yr and 2012 = $35 /LF /Yr Comparing San Diego and Newport: NMA's concept of proportionality. Auction: End all annual renewals. Invite closed bids on every mooring. Current holder gets right of first refusal, must meet or exceed bid price. TRANSFER PROPOSAL Comparing Approaches Harbor Commission's Issue Current Practice "Transferability Ad Hoc Committee Document" Proposal Numberoftimesa Unlimited • ix /year. • One permit location person can transfer a • Person receiving can be transferred mooringpermit mooringpermit 2x/10 years (between cannot hold more now and December than 2 other mooring 31, 2020). permits. • StartingJanuary 1, • Additional transfers 2021, transfers allowed at Harbor prohibited. Resources Managers discretion. FamilyTransfers Allowed Allowed Allowed within Immediate Family. One - for -One Exchanges Allowed Allowed with Offshore — offshore or permission of Harbor onshore — onshore Resources Manager. allowed with permission of Harbor Resources Manager. Comparing Approaches Newboatowner: Boat buyertransfers Boat buyertransfers City acquires seller's aj Buys boat on a boat title and mooring boat title and mooring tackle for FMV, alloevs mooring, boat permit name, maintains permit name, maintains boat buyerto remain seller %mooring the mooring permit the mooring permit on the mooring for up rdoesn't indefinitely. indefinitely. to months. want mooring permit. New boat owner: Boat buyer must Boat buyer must City ;will, if space bj Buys boat on a independently find a independently find a available, provide a sub - mooring, boat seller berth orothermooring. berth orothermooring. permit mooring location wants to keep for up to six months. moorin permit TransferFee Nominalfee (under City receives _`k of Betaveen nokv and 2020, S50). the annual mooring City receives 50% of the permit charge. annual mooring permit charge. Comparing Approaches Ownership of Mooring MooringgermMees Same as current. If Retain private Tackle (can, chains) o.vn and maintain surrendered, must ownership of tackle, but • Value is about S1K tackle. remove tackle within 30 City would purchase new. days or tackle becomes used tackle for ^'$2K if a • Annual maintenance City's tackle. person returned a = about S250- mooring to the wait list. 5300 /year Then City would sell tackle to the next person at the mooring, also for -$2K. Sub- Permittingof Harbor Patrol may put a Defines&allowsLong Same asTransferability Moorings visitingvessel Term (1 month to 12 Document, but referred temporarily on a can. months) and Short to as sub - permitting. Term (up to 30 days) rentals. City to charge a feefordoingso. Wait list (Interest List) Implement a true waiting list promptly. Process: Harbor Resources to propose updated rules and processes for Interest List. Similar to Balboa Yacht Basin wait list. Mooring permits assigned off the wait list will not be able to transfer. City will pay FMV for tackle when a mooring goes back to the Wait List. QUESTIONSAND ANSWERS FROM LAST TIME Q &A —Last Time Does the mooring to berthing ratio (14 %) take into effect Newport Harbor's private ownership of tackle? Aren't moorings supposed to be an affordable alternative to berthing? Has the City itself "sold" moorings? Is an appraisal needed to set mooring rates? From 5% to 14% ... $20.000 $18,000 $16.000 $14.000 $12,000 $10,000 $8,000 $6,000 $4.000 $2.000 2010 Berthing Index Rate Lido Dry Slips _ -- BYC Rate. Dunes Lot Rate -- - - - Bayside Wbse n T 2011 2012 2013 Proposed Mooring Rate CPI Adjusted Rate in Year I 2014 2015 Assumes 2% inflation for berthing rates Moorings After Purchase $45,000 $40.000 $35,000 $30,000 $25.000 $20,000 $15,000 $10,000 $5.000 f- 2009 2010 2011 2012 2013 2014 2015 Q &A —Last Time Financial Analysis: Unsecured Property Tax. Sales Tax. Tidelands Fund. Federal Contributions towards Lower Newport Bay Dredging. One time expenses v. ongoing expenses. Why not address other Harbor properties? Why only focus on Newport Harbor comparables? A — l_astTime Doesn't existing system work just fine right now? RECOMMENDED ACTIONS Recommended Action Summary Adoption of Resolution X • Increases rates over five years X • Sets forth Marina Index X • Gives authority to Harbor Resources to review X market on rates (and report back) • Gives authority to Harbor Resources to change X Index as needed. First Reading of Ordinance X • Limits transfers to 2x/ 10 years to 2020, then X prohibited • Authorizes familial transfers, like - for -like X • Second reading required, if adopted X Proposed Addition to Resolution RESOLVED by the City Council of the City of Newport Beach that the price adjustments for moorings set forth in this Resolution for 2013 and successive years shall take place only if the City Council has completed its open and public review, analysis, and where applicable, price adjustments of Other Harbor Charges on or before September 30, 2012. The Other Harbor Charges to be reviewed and analyzed are slips, garages, and apartments at the Balboa Yacht Basin, commercial piers not already on leases, and residential piers, including rentals of residential piers. Attachment D Mooring Practices Today & Proposed fREVISED for 11 -23 -2010) Harbor Commission's Issue Current Practice "Transferability Ad Hoc Committee Document" Proposal Number of times a Unlimited • 1x /year. • One permit location person can transfer a • Person receiving can be transferred mooring permit mooring permit 2x /10 years (between cannot hold more now and December than 2 other mooring 31, 2020). permits. • Starting January 1, • Additional transfers 2021, transfers allowed at Harbor prohibited. Resources Manager's discretion. Family Transfers Allowed Allowed Allowed within Immediate Family. One - for -One Exchanges Allowed Allowed with Offshore - offshore or permission of Harbor onshore- onshore Resources Manager. allowed with permission of Harbor Resources Manager. New boat owner: Boat buyer transfers Boat buyer transfers City acquires seller's a) Buys boat on a boat title and mooring boat title and mooring tackle for FMV, allows mooring, boat permit name, maintains permit name, maintains boat buyer to remain seller /mooring the mooring permit the mooring permit on the mooring for up permittee doesn't indefinitely indefinitely. to 6 months . want mooring permit. New boat owner: Boat buyer must Boat buyer must City will, if space b) Buys boat on a independently find a independently find a available, provide a sub - mooring, boat seller berth or other mooring. berth or other mooring. permit mooring location wants to keep for up to six months. mooring permit Transfer Fee Nominal fee (under City receives _% of Between now and 2020, $50). the annual mooring City receives 50% of the permit charge. annual mooring permit charge. Ownership of Mooring Mooring permittees Same as current. If Retain private Tackle (can, chains) own and maintain surrendered, must ownership of tackle, but • Value is about $4K tackle. remove tackle within 30 City would purchase new. days or tackle becomes used tackle for -52K if a • Annual maintenance City's tackle. person returned a = about $250- mooring to the wait list. $300 /year Then City would sell tackle to the next person at the mooring, Harbor Patrol may put a Defines & allows Long also for -S2 K. Same as Transferability Sub- Permitting of Moorings visiting vessel Term (I month to 12 Document, but referred temporarily on a can. months) and Short to as sub - permitting. Term (up to 30 days) rentals. City to charge a fee for doing so. Rental Rates Daily = $5. Proposed @ To be determined by To be determined by $15 -$25 /day. Council. Council. Wait List A wait list exists, but Creates "Mooring Same as Transferability rarely if ever moves. Interest List' like a wait Document. Yes. list. Yes, lx/year. No. Prohibited. Can a person who received a mooring permit off the wait list transfer that mooring permit? Multiple Vessel Not expressly allowed, Authorizes this system Same as Transferability Mooring System but City had a pilot for the BYC and NHYC. Document. program with the NHYC which worked well. Liveaboards Permittee may live- May be temporarily Same as Transferability aboard his or her permitted on Short- Document. permitted mooring with Term Rentals, too. a Liveaboard Permit Yacht Clubs and LICA Clubs and LICA charge Same as current Same as current • Balboa Yacht Club holds various individuals a practice. practice. permits for `72 offshore monthly or yearly rate moorings. to access the moorings • Newport Harbor Yacht assigned to the Clubs Club holds permits for and LICA. Permits held -70 offshore moorings. by LICA, BYC, and NHYC. • LICA = 46 onshore permits ( -792 LF). ORDINANCE NO. 2010- 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. 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. 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 well in excess of the annual permit fees. This value may be inappropriate in light of the California Constitution's prohibition against the gifting of public funds or assets as set forth in Anicle XVI, Section 6 of the state Constitution. This amendment to the mooring permit and transferability provisions of Title 17 provides for a revised and short-term process begins to bring the City's administration of moorings into compliance with Article XVI. Section 6. It also identifies fees, rents and charges that provide revenue which can -w14 assist in funding Harbor maintenance and dredging projects and Harbor amenities. NOW THEREFORE, the City Council of the City of Newport Beach, California. HEREBY ORDAINS as follows c(lal W [ottnik Thm %a r ntwtury rlt:utgr to avnkt unpBrating t'to"Itm 26 ttuuMertuatx. SECTION 1. Section 17.01.030(A) (4) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added-- to-seadamended to add Section 17.01.030(A) as follows: 17.01.030 Definition of Terms. A. Definitions: A. 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(4) (16) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added- ie�amended to add Section 17.01.0300) (15) 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(8) (11) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added4e4eadamended to add Section 17.01.030(0) (1 1) as follows: O. Definitions: S. 4. Sub - Permits. a. Sub - Permits - Long Term The term "Long Term Sub - Permit" shall be defined as those mooring sub - permits issued by the City for the temporary use of a Deemed Vacant or a Noticed Vacant mooring for a period of between one (1) month -to- twelve (12) months. b. Sub - Permit - Short Term. The term "Short Term Sub - Permit" shall be defined as those mooring sub - permits issued by the City for a temporary use of a Deemed Vacant or Noticed Vacant mooring for any I WW(9WK Ak.Mq Arfnlm(hd RrcU..• 1) 2210 Abe( FLr Mnamy IbRibiRm,.,1)1. 23 1010 Comoro[ IORH2]: Snnply ckamrp cdltn period of time less than thirty (30) days as determined by the Harbor Resources Manager. 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. A. Live - aboards shall not be permitted at piers that are bay ward of residentially zoned areas. No person shall live- aboard any vessel on an onshore mooring. (Ord. 2008 -2 § 1 (part). 2008) B. Live- aboards are prohibited on moorings subject to long -term mooring sub - permits as noted in Section 17.60.040(G). C. Live- aboards may be permitted on short term on moorings subject to short term sub - permits according to Section 17.60.040(G). order.) SECTION 5: Section 17 60.040 of Chapter 17.60 of Newport Beach Municipal Code is hereby amended in its entirely to read as follows. 17.60.040 Mooring Permits. A. Permit Required. No person shall place, erect, construct. maintain, use or tie to 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 or having otherwise complied with this section. A mooring permit is in the nature of license for the temporary use of a specific location within the Newport Harbor. Any work described and authorized in the permit must be completed within the time designated in the permit. B Issuance of Permit — Conditions. The Harbor Resources Manager, in furtherance of the tideland grants to the City. may issue a mooring permit or mooring sub - permit to allow the Mooring Permittee or Mooring Sub - Permittee to temporarily use a portion of the waters of Newport Harbor for the moonng of a vessel. Exceptions: a. The Balboa Yacht Club and the Newport Harbor Yacht Club I (AMM11f04 M1Yw111 Adnwi fbd R,,11..-II TY. NHnt hiu M,W.,WGO/umivd 11 23,101o, (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 34 below. In addition, the Lido Isle Community Association ("LICA") has permits for on -shore moorings on Lido Isle. the haFbGF as well- These organizations shall hold their Ga nt[ouul: ['call wm.Ix, IWAIN respective permits under the Yacht Club, or respective m new a 31 trlm weh=law mnbtgum 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 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 (14') feet 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 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 ("Mooring Permittee ") who shall be responsible for all activities related to the mooring permit. To the satisfaction of the Harbor Resources Manager, the Mooring Permittee shall: a. Identify on the permit the full legal name, current address, current telephone number and current e-mail address, if one exists, of the Mooring Permittee; b. Agree to be responsible for permit fees, maintenance and repair of mooring equipment; I IAOA (X)VIC4 Mum q Adrw, (/ i RMI..• 1122 )!) /ha FID Mrv4ux) 1ORMIP i f- 1 11.23.10h,, C. Grant permission to the City of Newport Beach to temporarily assign the mooring to another vessel when it is unoccupied through the issuance of a mooring sub - permit; d. Agree to 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 a person assigned the mooring as a mooring sub- permittee under subsections G and/or H below; e. Provide proof of liability insurance on vessel as determined by the City's Risk Manager, and; Provide registration or other proof of controlling possessory right in the Assigned Vessel, all to the satisfaction of the Harbor Resources Manager. 3. Permittee/Transferee Qualifications. A mooring permit shag-may-be held by, or transferred to, only the following persons: a. A natural person holding title to an Assigned Vessel; b. An executor or administrator carrying out the terms of a will or administering a probated estate that holds title to an Assigned Vessel, but only for the period of time prior to distribution of the estate; C. An inter vivos trust, family trust, or other similar type of trust estate holding title to an Assigned Vessel so long as all trustors are natural persons and the primary Mooring Permittee shall be the trustee of the trust; d. An approved transferee whose vessel and/or mooring permit are subject to any of the terms and conditions stated in 17.60.040(E); e. 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; ),l(MJ fN)1:Ni1 .Nauvnl Adnun( I Rrtllvu• 1).22101b>f1'r11 MTIUlIl IUWq /u.•!vd 1119101nn f Balboa Island Yacht Club for the purposes of youth education in boating and marine activities: Kerckoff Marine Laboratories for the purpose of marine and oceanographic research and American Legion Post 291 for the purpose of serving veterans and their families and supplying them with affordable access to boating and harbor activities. The Balboa Yacht Club, Newport Harbor Yacht Club and LICA (collectively "Yacht Clubs ") - 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. The boundaries of these mooring areas are graphically depicted National Oceanographic and Atmospheric Administration ("NOAH ") Chart Number 18754. Yacht Clubs shall be entitled to a maximum number of moorings as can be accommodated in the mooring fields designated in NOAA Chart Number 18754 and at a minimum the current number of moorings assigned to them as of the effective date of this ordinance. C. Plans and Specifications Required. No permit shall be issued for placing, erecting, constructing or maintaining a mooring or buoy unless such mooring or buoy is constructed: In accordance with standard plans and specifications approved by the Harbor Resources Manager and at a location approved by the Harbor Resources Manager: or In accordance with other plans and specifications for such mooring or buoy which have been submitted by the applicant, showing the construction of such proposed mooring or buoy together with the location thereof, 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 discretion, revoke the permit upon five (5) days written notice to the permittee by first class mail to the address shown on the permit. 11 the mooring is not removed by the permittee within thirty (30) days after cancellation of the permit, then it shall be deemed abandoned and the title thereto shall vest in the City. Mooring Permittee may apply for reimbursement for the value of the mooring equipment pursuant to subsection M below. LAOS MEW M(notul Adnw.(Mf Sn11u,ri1.22.10Mv Flu Mir•luul lUWR /Rn,unl i l2:f I Olon C rvt tDRN4]: sprnlRally nklrc" rnwtmR unra that mu IustmM m m.mumg m the c,v a nanr. of thr tlwoNtR pe ttM baxrl uixm Tulrlmrt, prkntitra. _- - Comm&* tDRHS]: To rbnwmtr mnbigum xtwv d gat bdlv.u, uratr rxhtWt mul to rlutumtr:u,v nnphr.mon that thr y.,dtl Auto nw,r nut uuu.6m, thrtr rxu.twR nwuhrr ul nxw a,, ,R". but allow Inr thr cun�ohAauuu unn aa„UVA mx,rn,q hrlAn E. Transfer of Permit. No Mooring pPermittee shall transfer a permit for a mooring or buoy granted under the provisions of this chapter, except, degree of consanguinity: or 2. When a natural person has taken title to an Assioned Vessel already on a moonng. the mooring will be surrendered to the City for assignment pursuant to the Interest List under subsection M below, or that transferee may, upon request and payment of relevant fees, another moonng subject to availability for up to the six (6) -months. After gx (6) months. the Harbor Resources Manaoer,Qr his or her desionee shall direct that the vessel be moved off the mooring an( that thg moortno be assioned throuah on the Moorino Interest List: or- 3 In cases not reflected In 1 and 2 above. a Mooring pPermit may be transferred prior to January 1, 2021 up to two times if the Mooring 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 Mooring Permittee. Procedures for Transfers: Permits shall not be transferred without the prior written approval of the Harbor Resources Manager. PAW 18 jaRUaFy 1, t The Harbor Resources Manager shall approve the transfer of a mooring permit under the procedures set feOW out below: 1. The Mooring Permittee (or, if the Permittee is deceased or incapacitated, the transferee) 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 Mooring Permittee (Transferee) qualifies as a Mooring 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 Mooring Permittee and transferor at the time of transfer, then: I IA(M1(x)i.* W Akxvmg ArMw. aril Hr 110.- 1112.10 Pow nu Anramg WRIO /f jnv 1113.10 /nn Comment (DRN {t: Mrwrtl up tr,uu F 1r4. to m.du, n (h.. th, Ivjr, nl tramk -m nuv Im nadr rrp,:vAlren n( whrn tlury COm Rt [DRR7]: su"r vrmr 6mn at tr:mJrt La U,.,l « q:vAlrx. ul datr. Ihr pn.,h rrr. « nrr0nl 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 Resources Manager within the sixty (60) day period, then the mooring may be deemed vacant and may be rewted assigned pursuant to sub - sections G{ and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M 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 assigned pursuant to subsection G and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M 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 lAO R M361 Morning Ad,w, (Xd R"11W 1122 Nxa tlu Mn•lurl fllNH:; k. a rt1 11 23 1010, unauthorized vessel(s) on the mooring. 5. The Mooring 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 Mooring Permittee or in any dispute with a third party over the Mooring Permittee's right to transfer the permit. 6. Transfer Approval. Upon confirmation of compliance with this subsection, the Harbor Resources Manager must find all of the following conditions to approve the transfer of a mooring permit: a. The Mooring Permittee no longer owns the Assigned Vessel or has retained ownership of the Assigned Vessel and has permanently vacated the mooring; b. The specific mooring location has not been previously transferred more than one (1) time between the effective date of this ordinance and December 31, 2020; C. The transferee has met all the qualifications and conditions for issuance of a permit in subsection B above. The Harbor Resources Manager may approve a one for one exchange of moorings between two Mooring Permittees, subject to compliance with this subsection 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. WhAn As sh RhAll hP dAllned !OF Me PUFP96es 91 !his GeGlIOR as the heirs a! Jaw I IAOB WWW1 M <rrm9 AJrran (kd RYftr 11 22 In Rrst Flu Mwamy IDWlYRn d 11 L§ IW, 11 G. City's Authority to Assign Moorings through Use of Sub - Permits. With the exception of the Balboa Yacht Club, the Newport Harbor Yacht Club, and the Lido Isle Community Association's designated moorings, Mooring Permittee may not rent, assign, or transfer the use of the mooring to any other person. With the exception of moorings issued to Mooring Permittees described in Section B (3) (e), City shall have the authority to assign vacant moorings to sub- pennittees pursuant to the following provisions: which: Deemed Vacant Moorings. City may assign Deemed Vacant Moorings through the issuance of long term sub - permits at its own discretion for any period of time up to one (1) year. Long term sub - permits may be renewed upon availability. The Mooring 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 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. 2. Noticed Vacant Moorings: City may assign Noticed Vacant Moorings at its own discretion through the issuance of a mooring sub - permit for any period of time, either long or short term, up to the reoccupation date on Mooring Permittee'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 Mooring Permittee's notice, and there is no further written notice from Mooring Permittee, the mooring shall become a Deemed Vacant Mooring. a. Mooring 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 Mooring Permittee intends to vacate his/her mooring, and the date he /she intends to reoccupy the mooring with the Assigned Vessel. LAOS (4)1361 Mauvgl Ad,,w, (b i Rrtfluu• )1.22.10 M,f nu .N,x mu) lUWI,mR, a rl 11 L(. 10 1nn b. If Mooring Permittee provides notice, the Mooring Permittee may reclaim the assigned mooring on the reoccupation date indicated in his/her written notice, or, if the Mooring Permittee r returns prior to or after the reoccupation date, upon twenty-four (24) hours written notice to the City. H. Procedures for Mooring Sub - Permit Issuance. Any natural person wishing to use a mooring pursuant to the issuance of a sub - permit must enter into a written mooring sub- permit 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 Mooring Permittee against any claims or losses arising out of, or related to the mooring rental, and that requires the mooring sub - permittee 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 sub - permittee. 4. Mooring sub - permittees shall provide approved mooring lines which shall be removed at the end of the rental period. 5. A mooring sub - permit agreement is renewable based on availability. Upon return of the Assigned Vessel to the mooring, the Harbor Resources Department will attempt to reassign the sub - permittee to another mooring. Mooring sub - permittees have no right of renewal or substitute moorings upon return of the Assigned Vessel, or upon termination of a mooring sub - permit agreement for any reason. Mooring sub- permittees accept an indefinite term at their own risk. 6. The sub - permit fee will be based on a rate established by the Newport Beach City Council and delineated in the Master Fee Schedule Resolution. Live - aboards are not permitted on moorings subject to a-long term mooring sub - permits. Live- aboards may be temporarily permitted on moorings subject to short-term sub - permits pending vessel inspection and subsequent re- inspection per each short-tern sub- I IAf.NW130 M,..vvl MLrvn(kd Wr11vv- 11 22 . 10h lPo, Mn•1vn1 lnW11nn,� 111.'31 1c11 permit renewal. 8. Short term sub - permit renewals are not guaranteed and are subject to availability. 9. Mooring sub - permits 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 assignments shall not cause such persons to lose their position on the Interest List. 10. Mooring sub - permits 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 charge by the Mooring Pennitlee to a vessel other than the Assigned Vessel for no more than thirty (30) consecutive days provided that: 1) The Mooring Pennittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring; 2) The Mooring Perm ttee has not loaned the mooring for more than sixty (60) days in the twelve (12) month period that immediately 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. Mooring Interest List 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 to the City or who wish to be assigned a mooring on a long term basis from the City through the issuance of a mooring permit or mooring sub - permit. On and after the effective date of this ordinance, the Interest List(s) shall be maintained for natural persons interested in securing a mooring permit, or being temporarily assigned the use of a Deemed Vacant or a Noticed Vacant Mooring. 2. Any person wishing to be added to the Interest List must do so by completing a written application and paying 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. 11AIPlW1.Pq Ah +rvrp Advunlbd Nnlluv 11 tl lnfinllL�Mrrlvy (ONIQ /Rz+•_.1 L.19. ttUOn 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 administrative fee referenced in 1 (4) below, then the person shall be removed from the Interest List. Each person on the Interest List is responsible to keep the City informed of any changes to his or her 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 on the Interest List will be notified of revoked mooring permit or mooring sub - permit or, surrendered or abandoned moorings and given the opportunity to receive a mooring permit or sub - permit. J. Mooring Permit Transfer Charge, The City shall charge the Mooring Permittee for the right to transfer a mooring permit under section E above in an amount equal to fifty percent (50 °0) of the annual permit fee as determined by the Master Fee Schedule. A mooring permit transfer charge shall not be required if: The transfer is from the Mooring Permittee to the same Mooring Permittee as trustor of an inter vivos trust. living trust or other similar estate planning tool: or 2. The transfer is made under Section 17.60.040 -JEj -172- and j8j. Surrendered Mooring Equipment. If the Mooring 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, the Permittee may provide written notice to the Harbor Resources Department of his or her intent to surrender the mooring permit, otherwise the provisions of Section F regarding a vacant mooring shall apply. Once a mooring permit is surrendered. the Mooring 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 I (A(W W1:I4if M1fr+rvi4 Adrrwl O 1 RMI.- 1122If) ib,l Flu Slrrmw 7JW W IF-r�d 11: WIMINrR [DR11191: nrktM ax rnrtmatlrtnrt wth puWy to tl c Iuo-rrxr ISM :md wrnrld hr rnr&11Wv rl thnc w:a nn rntc mtrm.trtl Ill nunrttrp pcnwt remove the mooring equipment, title shall vest in the City and the City shall compensate Mooring Permittee the fair value for the mooring equipment, less fees owed, as provided in subsection M below. L.- Revocation ererof Permit. 1. Grounds for Revocation. A Mooring Permit or sub - permit may be revoked upon any of the following 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 Mooring Permittee or Sub - permittee has not made the necessary corrections or repairs within the time required: C. 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: d. 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 issued pursuant to this chapter, 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 Mooring Permittee 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 equipment removal shall be paid by the Mooring Permittee. Any moored vessel or equipment not removed within thirty (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 of sale of the vessel or mooring equipment. 4. During any revocation proceeding under this Section L, if the I (AOSM1361 Mnwv,y Adnun fbd RMibu- 112J 1011,11 Co nt (uRH10): .su,r dfr &.1i a ih .a K A„,, mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager. M. Moorings Reverting Back To City: Should a mooring revert back to the City for any reason, whether through abandonment, surrender, failure to provide documents pursuant to subsection E. above, or for any other reason, the following shall apply: 1. The Mooring Permittee shall be entitled to recover all of Mooring Permittee's mooring equipment within thirty (30) days of reversion. 2. If Mooring Permittee does not recovery his or her mooring equipment, Mooring Permittee shall be entitled to payment from the City of the fair value of the mooring equipment as depreciated by use in an amount to be determined by the Harbor Resources Manager and as set in the City's Master Fee Resolution. 3. The mooring shall be assigned to an individual form the Interest list pursuant to subsection I above. 4. No mooring that reverts to the City for assignment off of the Interest List, or by any other appropriate procedure, shall have any right to a later assignment by a Mooring Permittee whatsoever. SECTIONS: 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 2010. and adopted on the _ day of 2010, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS I ✓/t(NW1:114 Mr.wly Adrrvi Ort1 R,,11..- 1) Mu M�rtmy IUWI1 /Nn'cxd l 12i 111 1 i-m ABSENT COUNCILMEMBERS APPROVED AS TO FORM OFFICE OF THE CITY ATTORNEY David R Hunt. City Attorney ATTEST CITY CLERK W> (X)1367 H<.,ruul Adnwi Urd knlWu• 11.'11.1 F G P EPA',, �yv a �If '_• �. � M M A ` ,,_ � 1 •��. �•: �` - ! ,� �� r `..�J Vii..„ J Q Q U 11 J Q Z Q U n z W �1 W O BAY FRWBAY NT ALLEY m R O g' w d m t +e r n( i.Za' a 7 i1 4 ti `