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HomeMy WebLinkAbout15-04-07 HC Minutes - Moorings NEWPORT BEACH HARBOR COMMISSION REGULAR MEETING MINUTES Civic Center, Community Room Tuesday April 7, 2015 6:00 PM 1) CALL MEETING TO ORDER The meeting was called to order. 2) ROLL CALL Commissioners: Brad Avery, Chair David Girling Duncan McIntosh Joe Stapleton Staff Members: Chris Miller, Harbor Resources Manager Shannon Levin, Harbor Analyst 3) PLEDGE OF ALLEGIANCE 4) PUBLIC COMMENTS—Non-agenda Items None 5) APPROVAL OF MINUTES Commissioner Stapleton made a motion to approve minutes from March 23, 2015. Commissioner McIntosh seconding. All ayes. Motion carries. 6) CURRENT BUSINESS 1. Mooring Review The Harbor Commission will discuss mooring administration in Newport Harbor along with all of the rules and regulations concerning moorings. At this evening's meeting, the Commission may make recommendations which will be forwarded to the City Council for consideration at a later date. Chair Avery opened the meeting, and introduced Patricia Newton with the Newport Mooring Association ("NMA"). Newton presented the NMA's recommendations on the desired fee structure. Avery thanked the NMA for their work and time put forth into the research and ongoing discussions. Avery commented that the Commission will be formulating a recommendation to take to the City Council, and opened the floor to public comments. Patricia Newton presented the NMA recommendations. Ross McElfresh commented that there has been no effort to keep the wait list active and available. Believes the system was effective when he first signed up years ago. Since the requirement to not have a boat on a mooring was put into effect, the wait list hasn't moved. He suggests re-establishing the 90-day rule, and remove derelict boats, but don't do away with the wait list. John Klonic, a new mooring permittee, commented that he is shocked at the fees and questioned the the justification for a high transfer fee. He suggested a transfer fee should only $100-$200. Don Beaty supports NMA's comments, suggests starting fees at $22/ft., and setting a policy to dictate how fees are adjusted in the future. Doug Word inquired what amenities are available especially when going out of town because parking and dinghy storage are issues for everyone. Brian Ouzounian commented that there not a formula as to how the fees are to structured, therefore it is up to the City to charge what is reasonable. He proposed $0.50/square foot of the shadow of the boat, plus $2/foot for bow and stern line. He added that a discount be factored into the rate to account for sub-rentals of vacant moorings. No change for bi- annual maintenance requirements. Richard Dorn commented that the Live Aboard fee is based on level of work involved to administer the permit service, and added that public dock time limits need to be enforced. Nigel Baily supports the proposed NMA fee structure and expressed concern with what might happen at the Council meetings. Tom O'Keefe questioned Proposition 218 and how that applies, he referred to a case in South Orange County concerning fees and taxes versus the cost of rendering services as the basis for fees. Scott Karlin commented that the American Legion now charges $45 per month for their new dinghy spaces. When NMA recommended $25/ft., it meant no more than $25. There was a range of values like on Karlin's report between $21-$25/foot. The other report generated by Paul Bahan was also $21-$25. The CPI was also near $25. He added that he doesn't want to be considered a free loader, and fees should be based on fair value. Mike Glenn addressed the term "rent" commenting that there are three ways government can collect money: fee, tax or fine. He added that the City may call a fee as rent, but it's still fee, and if it's called a fee then a fee study is warranted. Jim Mahoney commented that he is confused with rate and fees. Another speaker suggested that his mooring is rented too often, and that it should be more random so certain moorings aren't always selected. Jack Sudharth thanked the NMA for hard work, and added that when the right was taken away to transfer, his pride was damaged. Lenard Grech commented that h pays $165 for storing his 10' dinghy. He proposed an alternate fee structure that charges the same way private docks are charged. Dan Gribble suggested that when the dust settles, there be a moratorium on changing the rules and should remain permanent. Bill Zahm clarified that a shore mooring be 50% of the offshore mooring rate. Brad Avery closed public comments. Michael Torres explained fair market value rent, based in part on the findings of an appraisal. Harbor Commission Recommendations: 1) Transfers. Allow open transfers limited to one per year. 2) Transfer fee. 100% of annual mooring fee or% of sale price, such as 5%. Charging a percentage is may be difficult because it requires verification. Currently the transfer fee is 50% of the annual fee, and if the annual fee is reduced by half then the net charge of the transfer fee is essentially the same. NMA recommends 50% annual rate. Stapleton is concerned with cutting rates in half. Proposes a 100% annual rate, assuming the annual fee is reduced 50% to$25. Torres clarified that transfer fees are not rent. Girling went over his PPT. McIntosh favors market rate, and a percentage of sale price charged. Stapleton challenged the validity of the sale price. Girling favors posting on the web and 5% of sale price transfer fee. Avery commented that he does not want people to profit off public lands, agreed that it may be hard to determine sale price, and suggested that both parties sign adocument stating sale price. Stapleton added that he could support a percentage. Avery advocated putting moorings listed for sale on a City website for all to see. 3) Fee for transferring to trust or within family. No fee for transferring within family or trust, as is the current practice. 4) Single name on permit. Keep to one name on permit, as is the current practice. 5) Requirement to list all moorings for sale on a City maintained website. This is to provide for one location for permits to be listed providing transparency and ease for transactions. 6) Number of permits held by any one individual. A single person can hold up to two permits. If a permittee currently holds more that will be allowed until he or she holds two permits. An exception to this rule will be for marine contractors. 7) Annual mooring permit fee. Start with $25/ft per year, based on appraisal or CPI from 1976. Annual CPI adjustments thereafter. Avery commented that $25/ft seems too low but he will support it. Girling supported the $25/ft rate. Stapleton mentioned that mooring revenues may be reduced by half. He added that permittees may not see a value in a sale and may hold onto moorings because it is inexpensive. He will support $25/ft but has concerns and agrees to annual CPI adjustments. McIntosh pointed out that vacant moorings have helped eliminate derelict vessels on moorings. 8) Billing frequency. Currently billed annually and staff will look into increased frequency. 9) Renting of moorings by City. Maintain current practice of renting out vacant moorings, and allotting the revenues in harbor-related accounts. 2 Avery prefers to keep the status quo, and added that rental revenues should redirect into the harbor. Stapleton commented that some moorings may be rented out more than others. Girling supports keeping the current sub-rental system. McIntosh added that sub-rentals should require insurance and permittees shouldn't be responsible for damaged tackle. 10) Rental fees. Not a significant issue and can be dealt with at a later date. 11) Wait list. Abolish the waitlist since it doesn't work. 12) Revocation of moorings. If a mooring is revoked, put it up for public auction with significant notice(so long as transfers are allowed). 13) Insurance. Insurancelliability provisions need to be enforced. Commissioner Avery closed the discussion and thanked everyone for their participation. 7) SUBCOMMITTEE REPORTS None to report at this meeting. 8) QUESTIONS AND ANSWERS WITH COUNCIL LIAISON ON HARBOR RELATED ISSUES None to report at this meeting. 9) QUESTIONS AND ANSWERS WITH HARBOR RESOURCES MANAGER ON HARBOR RELATED ISSUES None to report at this meeting. 10) PUBLIC COMMENTS ON SUBCOMMITTEE REPORTS OR QUESTIONS AND ANSWERS WITH COUNCIL LIAISON OR HARBOR RESOURCES MANAGER None to report at this meeting. 11) COMMISSION ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT(NON-DISCUSSION ITEM)-None 12) DATE AND TIME FOR NEXT MEETING: The next Harbor Commission meeting is scheduled for April 8, 2015 at 630pm in the Council Chambers. 13) ADJOURNMENT There being no further business to come before the Harbor Commission, the meeting was adjourned at approximately 8:00 PM. 3