HomeMy WebLinkAbout01 - Mooring Permits, Rent & Other Provisions - PowerPoint (Public)June 16, 2015
Item No. 1
NMA Report to City Council
June 16, 2015
Presented to Newport Beach City Council
Harbor Commission Recommendations:
Fair, Reasonable and FACT based
Major Recommendations:
Set annual permit fee at $25 per linear foot
— Based on 3 fair value methods
— Eliminate Marina Index — it is "apples to oranges"
2. Preserve market driven process
- Allow mooring permit transfers
- Speculation is limited by transparency, frequency & number
3. Set Transfer fee at 100% of proposed annual fee
— Increases revenue for the Tidelands
— Guarantees fee when mooring is transferred with the sale of vessel
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3 Measures for Annual Fees
(Follows State Land Commission Guidance for Setting Fees)
Tidelands Valuation
($21 -$25)
Consumer Price
Index
($21 -$31)
Comparable Mooring
San Diego
($25)
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Fair Value Analysis
(Section 1 (d) Beacon Bay Bill — no discrimination in rates)
• CPI Approach
— CPI is an accepted method for adjusting fees that have been set
appropriately
— Depending on the base year chosen, the rate has a range of $21 - $31,
given the other methods below, $25 is a reasonable basis
• Comparable Moorings
— Current rate of $55 LF is much greater than the average rate charged in
2015 for other southern California harbors
— A reasonable comparison is San Diego adjusted to make a fair
comparison given amenities — 40' mooring = $25
• Tidelands Valuation
— Based on Rasmuson appraisal effective June 28, 2012 — relied on by
City for Residential docks & similar use — boat storage
— 50 cent rate applied to area occupied by mooring and vessel on an
"exclusive use" basis results in annual fee of $21.38 — $25.43
0
Tidelands Valuation Example
Satellite Picture of J field moorings
2034 sq.ft. for 40' mooring @ $.50 sq. ft. per Rasmuson is $25.43 per foot
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Permit Transfers
• A market driven process serves the boating public better
than a wait list
— In 5 years only one person has come forward from the waitlist to
claim a mooring of the 5 available
• Transferability must be maintained to allow permit
holders to recover acquisition costs paid under current
transfer laws
• Concerns about profiteering have never been quantified.
Harbor Commission proposal eliminates this concern.
• Mooring Transfers are not illegal ... but value must be
given back to the public
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Public Benefit
Mooring Permittees give back to the public in several ways:
Annual fees paid into the Tidelands Fund are the
highest of any user group for boat storage
Vacant moorings are used by visiting boaters and
the fees paid go to the Tidelands Fund
Permittees maintain the mooring tackle to ensure the
harbor is a safe haven and safe for navigation for all
Yacht clubs sponsor races & regattas, education,
youth programs and community fund raising
activities
Impact
Harbor Commission Recommendation
• Moorings remains the top contributor to the
Tidelands Operating and Capital Fund
compared to Commercial and Residential
Piers
• Tidelands Total Contributions:
— Moorings $973,329
— Residential Piers $176,549
— Commercial Piers $700,715
Accounting for Tidelands Raises
Questions
• Approved: $6,132,900 for the Marina portion of Marina
Park is in a loan to be repaid over 14 years
— Question: In 2014 another $2.9 million was
apparently expensed for Marina Park. Is there an
explanation of cost? It appears that only the Marina
portion was approved Feb. 12, 2013.
:1_
Vol
Budget Consistency
• "Over- market" mooring fees are not an appropriate
solution for harbor budget concerns.
• NMA respectfully urges the City to avoid budget
adjustments in the harbor that reflect City wide
budget adjustments
Examples:
— 2014 - 2015 report "Capital Improvements Program By The
Numbers" CIP Funding History
— Performance Plan adjustments especially 2011 - 2013 for "all
other CIP"
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CIP Funding History 2001 = 2015
(graph prepared by Public Works Dept.)
180
*-Approved Budget
160
Adjusted Budget
140
-41-New
f Rebudgets
120
100
80
60
40
c
20
� oo
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PW - 33 33 33 33 33 34 33 33 33 33 32 33 35 34 35
FTE
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NMA Recommendations:
• Adopt Harbor Commission recommendations
for Moorings including setting the annual fee
at $25 LF and allow permit transfers as
proposed
• Cap CPI increases at 2% (same CPI cap as
Residential Pier fees)
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