HomeMy WebLinkAbout01 - Mooring Permits, Rent & Other Provisions - PowerPoint (Staff)June 16, 2015
Item No. 1
Moorings
Harbor Commission
Recommendations
City Council Special Meeting
June 16, 2015
History
• 197O's
— $2.00 /yr /ft
— Later set by CPI at $6.00 /ft /yr
• 199O's
— Rent for Annual Permit (Reso. 95 -77)
• $20 /ft /yr Offshore
• $10 /ft /yr Onshore
Changes Adopted in 2010
Mid 1990's $20.00 /ft /yr
• 2006 Appraisal
— 2015 CPI Proposal is based on 2006 data rejecting recommendation and
suggesting reduced rate
— Current rates based on 2006 data and interpreting findings using the market
index instead
Changes Adopted in 2010 (cont'd)
• 2010 Rent for Annual Permit (Reso. 2010 -132)
• 14% of seven mid -range marina rates
• Onshore is charged 50% of rate
Offshore
$26.52
$30.71
$38.73
$47.64
$55.43
40' Example
$1,060.80
$1,228.40
$1,549.20
$1,905.60
$2,217.20 $15,400
Onshore
$13.26
$15.35
$19.37
$23.82
$27.21
18' Example
$238.68
$276.30
$348.66
$428.76
$489.78
Mooring Permit Rent Requirements
NBMC 17.60.020(E). Tidelands Users. Users of public tidelands,
including commercial and noncommercial users, shall be subject to
rental or lease charges reflective of the fair market value related to
such use as established by the City Council with the assistance of an
appraisal.
NBMC 17.60.060 Public Trust Lands. The following restrictions shall
apply to public trust lands under either a permit or a lease:
17.60.060(D)- Revenue. Rent under this section shall be based
upon fair market value, as determined by the City Council.
Such determination shall be based, in part, upon the findings
of a City - selected appraiser.
Rent Requirements (cont'd)
• Options
— Rely on 2006 Appraisal incorporating suggestions or changes
— Update 2006 Appraisal (3 weeks)
— New appraisal
Changes Adopted in 2010 (contd)
• Transferability
• No private transactions after 2020
• Moorings transferred in open market capped at 2
transfers
• Transfer charge= 50% of the Annual Permit Rent
— 2015 Transfer charge for offshore= $1,100
• Unlimited and free transfers within trust and /or
immediate family
Process
• January 2015- Harbor Commission tasked by
City Council to review moorings
• Public meetings
-2/23/15
-3/9/15
-3/26/15
-4/7/15
Harbor Commission
Recommendations
1. Rent based on CPI starting at $25 /ft
Rates & Annual Marina Rents
Offshore
$25.00
40' Example
$1,000.00
Onshore
$12.50
18' Example
Current Practice
$225.00
Offshore
$55.43
40' Example
$2,217.20
Onshore
$27.21
18' Example
$489.78
2015 40' Slip
$15,400
Current & P
Revenues
On Shore $27.71 $167,368.40
Off Shore $55.43 $1,778,831.85
On Shore $12.50
Off Shore $25.00
$75,500.00
$802,287.50
Loss of Revenue
CPI Option = 6.5% of 2015 Mid Market Slip Rates in Newport Harbor
CNB Currently Charging 14% of Mid Market Slip Rates in Newport Harbor
$91,868.40
$976,544.35
$1,068,412.75
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Recommendations (cont'd)
Fiscal Impacts to Revenue Adjustments
Approximately $2.81VI in projects and contract
management with anticipated mooring revenues of
$800,000 (CPI -based proposal).
Balboa Island Sea Walls $650,000
Central Avenue Public Pier $441,000
Grand Canal Dredging $500,000
Harbor Piers & Gangway Maint. $551,600
Harbor Tide Guage $50,000
Lower Castaways Park $200,000
RGP 54 $75,000
Mooring Management ( "not capital) $315,000
Total $2,782,600
Recommendations (cont'd)
2. Mooring Transfers
Allow transfers between private parties. Unlimited lifetime transfers capped at
one transfer per year.
3. Transfer Fee
100% of Annual Mooring Rent
40' Mooring Transfer Fee= $1,000
4. Single Name / Permittee per Mooring
Maintain current rule requiring one person per mooring permit.
5. Centralized Posting
To provide transparency all transfer listings must be advertised on City- hosted
web page.
Recommendations (cont'd)
6. Transfer Fee Between Family or Trust
Unlimited and free transfers within family or trust. Current practice.
7. Maximum Mooring Permits Allowed
Two moorings maximum unless currently holding more.
8. Short and Long Term Mooring Sub - Rentals
City rents to third parties and collects revenue. Revenue is used for harbor
amenities and projects.
9. Rental fee for Short & Long Term Sub - Rentals
(visitors or 3rd party)
Not a significant issue at this time.
Recommendations (cont'd)
10. Billing Frequency
Staff will explore developing more frequent billing options
11. Wait List
Abolish the waitlist.
12. Mooring Revocation
If a mooring is revoked for non - payment or other reason, the mooring reverts to
City. The mooring may be made available for public auction.
13. Proof of Insurance
Current practice. Improve implementation.
Next Steps
• Council to provide recommendations and
suggestions to the current Mooring Permit
policy and fee structure
• Provide direction to staff to return at a future
City Council meeting with changes to policy to
be enacted by resolution(s)
Shannon Levin
Management Analyst
shannon@newportbeachca.gov
Chris Miller
Harbor Manager
cmiller @newportbeachca.gov
949 - 644 -3041 949 - 644 -3043