HomeMy WebLinkAbout11 - Harbor Fees for the New Harbor Department and Select RentsQ SEW Pp�T
CITY OF
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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
January 22, 2019
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dan Matusiewicz, Finance Director - 949-644-3123,
dmatusiewicz@newportbeachca.gov
PREPARED BY: Theresa Schweitzer, Senior Accountant,
tschweitzer@newportbeachca.gov
PHONE: 949-644-3140
TITLE: Harbor Fees for the New Harbor Department and Select Rents
ABSTRACT:
On July 1, 2017, the City took over responsibility for managing harbor operations from the
Orange County Sheriff. Since that time, the City utilized the fee schedule from the County
of Orange. The City's fee study consultant, MGT of America (MGT), recently completed
a comprehensive review of the Harbor Department fees. The real estate appraisal and
consulting firm Netzer & Associates determined the fair market value of rents charged at
Marina Park, guest/transient slips throughout the harbor, and select rents at the Balboa
Yacht Basin. On August 8, 2018, the Harbor Commission reviewed the recommended fee
and rent updates and unanimously recommended the updates, with minor changes, to
the City Council for adoption. Subsequent to Harbor Commission review, staff
recommended some minor corrections and adjustments to the Schedule of Rents, Fines,
and Fees (SRFF) noted in the discussion below. The proposed harbor fees and select
rents were then brought before the Finance Committee on November 29, 2018, at which
time they recommended this matter be brought to the City Council.
RECOMMENDATION:
a) Conduct a public hearing to receive comments on the harbor fees and select rents;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
c) Adopt Resolution No. 2019-3, A Resolution of the City Council of the City of Newport
Beach, California, Adopting and Revising Certain Harbor Department Fees and Rents
within the Schedule of Rents, Fines, and Fees.
Harbor Fees for the New Harbor Department and Select Rents
January 22, 2019
Page 2
FUNDING REQUIREMENTS:
The fiscal impact of the proposed guest mooring and Marina Park slips rents and the new
cost of services fees is shown below.
If approved, the change in fees are proposed to be implemented thirty (30) days after the
approval date with an estimated increase to Tideland revenues of $152,785 for the
remainder of FY 2018/19 and approximately $458,354 thereafter.
DISCUSSION:
On July 1, 2017, when City assumed responsibility from the County for managing Harbor
operations, City utilized the fee schedule from the County of Orange. On July 10, 2018,
Council created the Harbor Department and eliminated the Harbor Resources Division.
In order to ensure the proper recovery of the City's cost of services pursuant to Newport
Beach Municipal Code Section 3.36, the City's fee consultant, MGT, reviewed and
updated the new Harbor Department fees.
The detailed staff report and attachments reviewed by the Harbor Commission on
August 8, 2018, are included as Attachment B. The updated proposed rent and fee
schedule is included as Exhibit 1 within Attachment A, where the following changes were
made based on the Harbor Commission's recommendation:
1. The Large Vessel Guest Anchorage Rate — Non City Tackle — no boat, per Lineal
Foot charge, was corrected to read $0.47, rather than $0.047; and
2. Lend a Mooring Line/Help to get on a mooring was removed. The name of the fee
was confusing and misleading. Instead, the staff time to process and fulfill a
request for a lost or broken line was added to the actual cost of the replacement
line under the Lost/Broken Line fee (Attachment A, Exhibit 1, line 9).
As Harbor Department staff gained more experience and understanding of the Harbor
services required under the restructure, staff has minor updates to the Harbor fees to be
more clear and to reflect the efficiencies gained in the new department. These updates
are subsequent to the Harbor Commission review, and are detailed in Exhibit 1 of
Attachment A. The following lists the proposed changes (unless otherwise indicated, the
fees did not change):
1. Renamed
11-2
FY16/17
Actual
FY17/18
Actual
Proposed
Annual
Variance from FY
17/18
Guest Moorings
$ 179,080
$ 214,239
$ 588,000
$ 373,761
Marina Park Slips
$ 133,461
$ 208,407
$ 277,000
$ 68,593
New Fees
N/A
N/A
$ 16,000
$ 16,000
Total potential revenue increase
$ 458,354
If approved, the change in fees are proposed to be implemented thirty (30) days after the
approval date with an estimated increase to Tideland revenues of $152,785 for the
remainder of FY 2018/19 and approximately $458,354 thereafter.
DISCUSSION:
On July 1, 2017, when City assumed responsibility from the County for managing Harbor
operations, City utilized the fee schedule from the County of Orange. On July 10, 2018,
Council created the Harbor Department and eliminated the Harbor Resources Division.
In order to ensure the proper recovery of the City's cost of services pursuant to Newport
Beach Municipal Code Section 3.36, the City's fee consultant, MGT, reviewed and
updated the new Harbor Department fees.
The detailed staff report and attachments reviewed by the Harbor Commission on
August 8, 2018, are included as Attachment B. The updated proposed rent and fee
schedule is included as Exhibit 1 within Attachment A, where the following changes were
made based on the Harbor Commission's recommendation:
1. The Large Vessel Guest Anchorage Rate — Non City Tackle — no boat, per Lineal
Foot charge, was corrected to read $0.47, rather than $0.047; and
2. Lend a Mooring Line/Help to get on a mooring was removed. The name of the fee
was confusing and misleading. Instead, the staff time to process and fulfill a
request for a lost or broken line was added to the actual cost of the replacement
line under the Lost/Broken Line fee (Attachment A, Exhibit 1, line 9).
As Harbor Department staff gained more experience and understanding of the Harbor
services required under the restructure, staff has minor updates to the Harbor fees to be
more clear and to reflect the efficiencies gained in the new department. These updates
are subsequent to the Harbor Commission review, and are detailed in Exhibit 1 of
Attachment A. The following lists the proposed changes (unless otherwise indicated, the
fees did not change):
1. Renamed
11-2
Harbor Fees for the New Harbor Department and Select Rents
January 22, 2019
Page 3
a. The Inspection Fee — Charter Boats was renamed Marine Activities Permit
— initial (line 13), for clarity and consistency with the current fee name;
b. The Inspection Fee — Live Aboards, Marine Activities Permit Re -check was
separated into two line items and renamed Live Aboard Permit (line 8) and
Marine Activities Permit — renewal (line 14), for clarity and consistency with
the current fee names; and
c. The City owned Guest Moorings — Offshore and Sub -Permittee Guest
Moorings — Offshore have been combined to one line item and renamed
"Guest Moorings — Offshore (Year -Round) (line 26) since they all have the
same proposed rent.
2. Deleted
a. The Inspection Fee — Dock, Piling, Code Enforcement was deleted from the
fee study, this is not a fee that would be charged;
b. The Mooring Inspection fee was deleted from the fee study as this is not a
fee that would be charged;
c. The Impound Fee (Boats over 14') fee was deleted from the fee study
because this is the same service as the Towing Fee (Boats over 14'); and
d. The Live Aboard Permits, Marine Activities Permit (initial and renewal), and
waitlist fees currently under Public Works — Harbor Resources will be
deleted as the recently studied fees can be found under the Harbor
Department fees.
3. Added
a. A Dinghy Storage rent (line 25) was added which is based on the Guest
Mooring — Onshore (Year -Round) rate. Currently if a dinghy is adrift or lost,
we keep it for five (5) days at no charge, after that we charge $50 per day,
or if it is impounded the dinghy owner is charged the impound fee for the
first day and then $50 for each day thereafter. The dinghies are first stored
at the docks and then at Basin Marine.
4. Moved
a. The Balboa Yacht Basin Rentals (except Dinghy Rentals) and Commercial
Piers under Public Works - Harbor Resources will be moved to Community
Development — Real Property;
b. Dinghy Racks and Onshore and Offshore Moorings will be moved to Harbor;
and
c. Wait List fees will be moved to Harbor.
5. Studied (generally speaking, the fees are lower because of the Harbor restructure)
a. The fee for being added to the Balboa Yacht Basin slips and garages waitlist
went from $38 to $27 (line 21);
b. The fee for being added to the Balboa Yacht Basin and Marina Park dinghy
racks waitlist went from $38 to $23 (line 22); and
c. The fee for being added to the live aboard waitlist went from $38 to $5 (line
23).
6. Other Adjustment
a. When studying the waitlist fees, MGT updated the fee study workbook with
the indirect citywide overhead from the most current cost allocation plan,
which resulted in some fees going down a few pennies. Although the full
cost came down ever so slightly, none of the recommended fees changed,
due to the City's practice of rounding the fee down to the nearest dollar.
11-3
Harbor Fees for the New Harbor Department and Select Rents
January 22, 2019
Page 4
The service numbers highlighted on the left within Exhibit 1 of Attachment A are the fees
and rents that require Council's approval. The remainder of the changes move existing
fees and charges to their appropriate location within the SRFF. Although these do not
require Council approval, they are included to provide the full picture of changes made to
the SRFF document.
The proposed harbor fees and select rents were brought before the Finance Committee
on November 29, 2018, at which time they recommended this matter be brought to the
City Council without any additional changes. If approved, it is recommended the
proposed fee changes take effect thirty (30) days from the date of approval.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to Government Code Section 66018(a) (two
publications with at least five days intervening between the two dates), Government Code
Section 66016(a) (notice mailed at least 14 days prior to the meeting to any interested
party who files a written request) (mailed notice to Building Industry Association of
Southern California, AT&T, Southern California Edison, and Southern California Gas
Company on December 11, 2018), and the Brown Act (72 hours in advance of the meeting
at which the City Council considers the item).
000T91:IJil=1Llk&S
Attachment A — Resolution No. 2019-3, including Exhibit 1 — Revision to the Schedule of
Rents, Fines, and Fees — Harbor Fees and Select Rents
Attachment B — Harbor Commission Packet — Proposed Rents and Fees for Marina Park
Marina and the Harbor Department
11-4
ATTACHMENT A
RESOLUTION NO. 2019-3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADOPTING AND
REVISING CERTAIN HARBOR DEPARTMENT FEES AND
RENTS WITHIN THE SCHEDULE OF RENTS, FINES, AND
FEES
WHEREAS, on July 1, 2017, the City of Newport Beach ("City") took over
responsibility for managing harbor operations from the Orange County Sheriff's
Department,
WHEREAS, Newport Beach Municipal Code ("NBMC") Section 3.36.010 provides
that services and programs that primarily benefit a person requesting the service are
traditionally funded in whole or in part from fees charged to the person who initiates the
service;
WHEREAS, NBMC Subsection 3.36.010(C) further provides that to ensure fees
charged for services are an accurate reflection of costs, the City should conduct a fee
study at least once every five (5) years;
WHEREAS, NBMC Section 3.36.030(C) provides that the City Council may modify
the fee resolution upon a determination that there has been an increase or decrease in one
or more cost factors relevant to the calculation of the actual cost of providing the service;
WHEREAS, the City retained MGT of America, Inc. ("MGT") to prepare cost
allocation plan and cost -of -services studies for City services ("Agreement");
WHEREAS, pursuant to the Agreement, MGT has conducted cost -of -services
studies on a rotating basis by City department;
WHEREAS, pursuant to the Agreement, MGT prepared a cost -of -services study
for the Harbor Department;
WHEREAS, pass through costs for actual services or tangible goods do not
include staff time,
WHEREAS, statutory fees are mandated or capped by another authority, such as
the State of California,
11-5
Resolution No. 2019-3
Page 2of3
WHEREAS, the Beacon Bay Bill, California Constitution Article 16, Section 6,
Newport Beach Municipal Code, Section 17.60.060(D), Section 17.60.020(E), and City
Council Policy F -7(D) (Income Property) require that the rent received by the City from
third parties using the Tidelands be based in part upon an appraisal, and reflective of the
fair market value related to such uses;
WHEREAS, in order to determine the fair market value of rents related to the City's
harbor, staff engaged Netzer & Associates, Real Estate Appraisal and Consulting
("Netzer & Associates"); and
WHEREAS, Netzer & Associates provided an Appraisal Report, Fair Market Rent
— Guest/Transient Moorings Newport Harbor, California, on November 27, 2017 and an
Addendum dated March 26, 2018 which added Guest Slips at Marina Park, the monthly
Dinghy Storage Space rent at Marina Park, and the Guest Mooring Rate on private (Non -
city owned) tackle.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council finds that the rent provisions contained in Exhibit 1
attached hereto, which is incorporated herein by this reference, provide for the changing
of fair market value rent and that the rental rate (and adjustments) in the attachment
constitute fair market value rent located upon tidelands, which findings are made by the
City Council in its exclusive discretion but are based, in part, on the information in the
appraisals of its City -selected appraisers and, in addition, on other testimony and
documents in the record for this matter. The City Council further finds and determines
that the rent located upon tidelands, operating under a permit, shall be set in accordance
with the attachment hereto. The rent established in this resolution shall only be applicable
to permittees for City managed tidelands.
Section 2: The City Council adopts and revises the Schedule of Rents, Fines,
and Fees ("SRFF"), in part, as depicted in Exhibit 1. Except where prohibited by law, all
fees provided shall be rounded down to the nearest dollar. Except as expressly revised
by Exhibit 1, all other provisions of the SRFF shall continue in full force and effect.
Section 3: Direct pass through, or actual, fees may be updated, without further
action by the City Council, by the Finance Director as necessary to ensure recovery of
cost.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative portion of this resolution.
11-6
Resolution No. 2019-3
Page 3 of 3
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution 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 resolution. The City
Council hereby declares that it would have passed this resolution and each section,
subsection, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 6: The City Council finds the adoption of this resolution and revisions to
the SRFF are not subject to the California Environmental Quality Act ("CEQA") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a project
as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 7: This resolution and all proposed fees and rents shall take effect thirty
(30) days following adoption of this resolution, and the City Clerk shall certify the vote
adopting the resolution.
ADOPTED this 22nd day of January, 2019.
Diane B. Dixon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aorbn C. Harp
CiYy Attorney
Attachment: Exhibit 1— Revision to the Schedule of Rents, Fines, and Fees –
Harbor Fees and Select Rents
11-7
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Exhibit 1 - Revision to the 5chcdule of Rents, Fines, and Fees -Hai but Fees and Select Renis
A 8 C D E F G H
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SERVICE NAME
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11-8
Exhibit 1 -Revision to the Schedule at Rents, Fines, and Fees -Harbor Fees and Select Rent,
A
t
11-9
2018Madl
Current Charges
I Proposed Charges
Full dfrrkrt Valve
Co
simi NAME
01HItl11PTION
Total or Base Fee
Total or Base Fee
REFERENCE
TYPE
Total or ease rncrem i.T-llf
CAI
Notes
Impfnment allpn pate
Fee appllrablrF
M1rma Park Boal Slips 40• shpt
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5601Nr hl
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Resolution
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Yrs
2/7/2019
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5 36.14
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!/]72018
We
W. -C, 0 -hon,
r kora, Ipal. per Yea,
5 18.06
5 1806
Rnolutrpn 2016 17
Rental
See Rrsuluho
J ow
EPI ad illmrhls occur Icii
1/1/20111
sa m,• a, offshore
S1.50 per lineal Fool
Mulhhu vessel- 2 hula,
Basro on far. —Le, rat, anali
Guest Mophn s
LF p ht
Rtsplutron
Rental
51.501
Yr,
2/7/2019
Same as0 s ore
per ora oot
-
Mulh hull v""I 1 hails
llaswl on fou nwrkat rola a IVsss
G-1 Mounngf
(lF Illfil
Resolullon
Rental
51.7510
Yrs
!/712019
MMMUNrrY OEVEIBPMENT - REAL PAOPERTY
Balboa Yarhl Basin SII 1Gara , A artment Renlats
Rcsolwwn 2010.
Sa[•
A4altmanls
Per month IA ut—rit 061
5 2.416.96 5 2.50g l6
134
Bernal
5 !.508.26
Nolr
CPI aCI-triunts acrur -paiaiely
7/1/20I8
Rcsolutwn 2010
5 -Nr
...in lA artmtnts p5&p73
5 2.68545
5 2.18b 96
134
Benlat
5 !,786.96
Note
CPl apusm,tnu cccw sefe"aldy
711 20:8
Rt Mion 2010-
5n•
Gu. a Rrntab
r5.r mpntn
5 356 17
S 369 61
114
Rental
5 1(19 63
NOIi,
EPI sa u,Lmcnn p[em IV
7 !/7018
Bur r hargru 5na0 b,the Eaemer or the step m tl,r
Iwai II if., bum n Icngrr than Ii n p,. the
Rcsalubon 2610
(Norge shall be basin on the,hp pu[r plu, the r.1rn
Slip Rentals
20' Slr ear lool. w crilh
5 23 06
S 14.81
134
Rental
S 24.81
No
Iruem ler1 pl the teat. at mat same sir rale
7/1/2018
Ft.nrchargrrl s1,.0 be the Lrrmrr of the shp « IN.
i If the boat m longer Ih-Ihr 01 s1 n m•Ihr
R r,pl„hnn 2030
[harry shall Re ba -d nn It. sLp pine Sit— Ili.- a.n1
slipRentas.
!V 5L,P r foot. PO month
5 23 a9
5 2b 76
i 14
111
S 16 !6
No
bee.d kit Of lh, Coal. at that same slip rel,
111/7u18
Bar, [kiali shall be the greilel .1 11 ,bp dr Ili,•
baa! If the boil nlonger than rhe slip it,,m,the
17010-
[h1rty shat) be bi„a on rhe Shp tinct plus Ili,• extra
51r Rentals
3:' Sli rr Icor, rnnr•.th
5 27.0i
5 21 11
:34
Rental
5 27.31
No
lineal feet of the boat. at that same ship rale
711120J8
RAI, (r.a,gra b.,U be the greater of the ,hp ur 1hr
tell sf thr hoot a i Vian the slip it 1, m. the
1lrsoluhon !B10
r bar pr ,hap he based on the slip Prue prus Rm t'..Sh
Rental,
J1' Shp Ire Riot. imunlh
5 27A0
S !!.Hilt
134
Rental
5 27,86
No
linear Inel of the boat, at that saint Sliprata,
/ 12018
Hirer dla,ged shall be Ihr greater a111re slip m [h,
b[aat I(111, Baal IS lonii thin the slip it Him. lh,,
Rr•stlluhtln 2010
rharra shall be based on the slip prus plus d". -Ir'
Shp Ram11•.
14' Shp ,r font-p,,,,unlh
S 29.55
S 1:44
114
Rrnlal
5 3I 45
No
11 few ul th, boat, al that same ship rel,
1/1121a
Rmr I hi' Bea Oull be lhr Bremer nl the Shp pr we
[,,at 11 the bawl Is Iongrl than the ,lip a rs m-Ihr
R, ,nluhpn 7610
,h ail•,,• 0411 bn based on the ,hp p,n a Alps ilii ,•Ira
51rp Nrn[aN
15' SA par loot, per monN'
5 30 43
S 11 4i
114Rental
5 1; aS
tie
lineal h•cl of thv tw11. a[ that same sIIP ra[r
111120 18
Rale d,arg,a shah be the greater of 01, shp or 6,r
briar 11 the bol; i, longe, than the shp rl lS ln. the
Rrsolulron 2610
s1 shall bc,hlup on Lhr shp pmr plo, Ihr extra
M." lhvnal,
JT 51 - filool, er rnonth
5 3043
S 30.86
134
Rrnlal
S 10.86
Nu
lineal fret al the boil at that samrslr!talc.
11:1201B
10,' 1 %li ill Lr reater of the glhr,hp Ix 11„-
Roil If te boll n 1 -ger than Ihr hp.l 1, in. I Ire
R—M,on 2010
dmrge shall he basca an the slip pncv plus the ealra
SlipRentah
40'51,, er rope, c prim
5 33.54
5 ltr 66
134
Rental
S 3666
No
belt -it lett al the boat. at that some slip rale
7/112018
Rate charged shin be the greattlpl the slip or the
Lunt 11 the boil rs lunger than the Opt n rn.11,.-
Retotuben 2010-
till r1 0110 br based on the SLP Prue plus Ii Ira
Slip Rentor,
;V shp per trial. prl mond,
5 3694
5 39 Lt
134
Rrnl31
5 3968
No
4 -al 1 of lhr twat 11 that ,am,• ski rate
]11 ".1.
t
11-9
Exhibit S -Revision to the Scheduie of Rents, Fines, and Fees -Harbor Fees and 5elect Rents
A R r n c c a
Current
Charges
1. Proposed Charges
2018 adJ
Fvll CotllMadet Valuo
SERVICE NAME
DESCRIPTION
Total or Sam Fee
To] at or Baso Fn
REFERENCE
TYPE
Total or Nate Intremental -pf
CPI
Nutu
Impleme[adon Ogle
Fee appllcablel
Ralecharged shag he the greafe, of the the m she
1mat. n the boat n longer than the slip d Is In• Iht•
R-1.1 oh 2010-
thargc shall be baled on the 0p pace plus the emia
51' s Rl,W.
SO' Sb per tool. per month
5
-' w
S --- - _ .., i t
134
Rental
5
44 39
No
Meat feel of [be Coal. at that wmv rale
! 112118
R41a<hartcd shall be the gfeaOre [hr sbp nrl r
boat It 7hehoat,slurger than thc•<Ip,3 is ln.tl,e
R-1.1-2010
char loan be based or the shp pNle plus the_Ua
Sko Rental}
10' S&P er fooS. PC, menlh
5
-9 41
5 an N3
133
Rental
S
41183
NO
hheal rest o11 the boat. at Ihat fame skp rat.
7/1/2018
Rale charted shin be 1fC trealer of the 0s, or She
boat It the b-tn longer than the shp lt,s m. l he
Retol;.t;an 2010
thaige •han be based on the shp pnce plus the .Ira
SI Rentals
7S' She cr tool,permonth
4
5088 5 5095
134
Rental
5
50.95
No
lai-I Irm of the mal, at that same sk rale
7111201 H
Pleas
Rey 20 12 .91
C.-ner-I
Sae Resolwlnn
See Rmotulmn
92, 2a179fi, 2012-
Rrrslal
Ser Rrsoluhon
No
7/1517017
PUBLIC WORKS -MOOR RESOURCES
8atll -
-Z-all-All extrpl 0;,thy 11-1ah Moved to Communiky
Development - Real Pro en
Hr«<.1.
rr.a.wa.d./?walrn«,4JrS!
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iit
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; r. wr-hw[r mowh
5----'.:..=3
6 41AS
y4
Rental
5�]�4
lyu.allw'iol4h[•Jwar,a<.71wrl+arxwak rat«
71117618
Rale. r Ixar1!.rl a1. U LWtre-gray W4 oRi les shp a Ihr
I. &'1111. bwl r. k.%-Ilran a Jqr rt.a.sr7lu.
R.rrYutrrswJA7Q
41-V. abaY s 1«.l..dpn-Iha.-skp Vr«r IYu4aw«I.[ra
P -4.r6
3T- - low, wnlL
5
7R -1-J 5-- 40"
13a
R..tA
30.84
N.r
4-1 atm
7117038
All.•aiurysW y.aLLhp.<".t-t.-^��r1--,^„'_;rr-4lryror-alu:
i>,yl-N IlwlwNrslp.�rJlran-thpyprk-K-n.-ries
Re•sofa.ird.-iU:A
.Aw JwYlarL.IwAPnI
_
38 SYP-p.-. 1«rlrWrarr«rlh S
'3.5: 4- -. ar.l..
lu
vA..e
e
._.. .r1.h..lhrwlrw
V:
Exhibit 1 - Revision to the Schedule of Acnts. Fines, and Fees - Harbor Fees and Select Rents
A A C p E F G H
Currrnl Charges I Proposed Charges 2018 adf
5iAM NAME
DESCRIPTION
Total a Mare Fee 1.1.1 or 11
-ire RCF CRENCE
IYPE
lelal 0r Base
fee
Incremental - tit Cpl
applicable)
Mn
Imple—iii ls. Dale
Rai«+t•a+pedY,+Y 6«Ibp�rpaF•a�it-IIMyLp.p•-IrY
Pwl. K irypoai w MwEr'+°�'-D'«Jw+w w -+i•..
FesM•.1x+• 76:0.
crvey,.• sTaK.elwaWuwihraSp W rw-pWi{A' W r.
Aw4aM
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- -_
:•. W
4469 iii
111-4.4
S ----4a.69
air•
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See
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i+.r r,.Jao1
5
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ton a0 S
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under HarlxirD l
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i 7.70.040
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S
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Yrs
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Plan(Irrd LCr
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S
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5 13121
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5
1.70700 5
1.923 DO MC t115.02001
0054-
S 1.921.1.
Yas
712412019
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5----
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"474440
ATTACHMENT B
HARBOR COMMISSION PACKET - PROPOSED RENTS AND FEES FOR MARINA
PARK MARINA AND THE HARBOR DEPARTMENT
11-12
`t Po�T CITY OF
s NEWPORT BEACH
Harbor Commission Staff Repo
TO: HARBOR COMMISSION
rt
August 8, 2018
Agenda Item No. 1
FROM: Carol Jacobs, Assistant City Manager - 949-644-3313,
cjacobs@newportbeachca.gov
Theresa Schweitzer, Senior Accountant - 949-644-3140,
tschweitzer@newportbeachca.gov
TITLE: Proposed Rents and Fees for Marina Park Marina and the Harbor
Department
ABSTRACT:
On July 1, 2017, the City took over responsibility for managing harbor operations from the
Orange County Sheriff. Since that time, the City has utilized the fee schedule from the
County of Orange to charge for fees and rents. Over the last year, staff has evaluated
the services provided and completed an appraisal of rents charged at Marina Park and
Guest/Transient Slips throughout the harbor, and selected rents at the Balboa Yacht
Basin as well as a fee study for various tasks the Harbor Department performs.
RECOMMENDATION:
1. Find this action exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
2. Recommend to the City Council approval of Rent and Fees Schedule (Attachment
C) for Marina Park and the Harbor Department.
11-13
FUNDING REQUIREMENTS:
There are no funding requirements for this item. If City Council approves the attached
Rent and Fees Schedule for Marina Park and the Harbor Department, the revenues will
be approximately as follows:
Fee Name
FY 16-17
Actual
FY 17-18
Actual
FY 18-19
Budgeted
Proposed
Annual
Guest Moorings
$179,080
$198,143
$150,000
$588,000
Dinghy Racks
$5,375
$5,450
$5,000
$ 7,400
New Fees
N/A
N/A
$0
$440,000
Total
$184,455
$203,593
$155,000
$1,035,400
BACKGROUND:
As part of the City taking over the harbor from the Orange County Sheriff's Department,
the City has evaluated both the rents and services provided to harbor users. The City
engaged Netzer and Associates to review and provide a current appraisal of the harbor
rents in November of 2017 (Attachment B). At the December 11, 2017 Harbor
Commission meeting, the Commission had some additional questions and concerns
regarding the rents and asked Netzer for some additional information. Netzer completed
an addendum in March of 2018 (Attachment C). In addition, the City's fee study
consultant, MGT performed an analysis of fees in the harbor and are shown as
Attachment C. Rents and Fees are defined separately in the Municipal Code and are
further explained below.
DISCUSSION:
Rents
The Beacon Bay Bill, California Constitution Article 16, Section 6, Newport Beach
Municipal Code, Section 17.60.060(D), Section 17.60.020(E), and City Council Policy F -
7(D) (Income Property) require that the rent received by the City from third parties using
the Tidelands be based in part upon an appraisal, and reflective of the fair market value
related to such uses.
In order to determine the Fair Market Value of rents related to the Harbor, staff engaged
Netzer & Associates, Real Estate Appraisal and Consulting. A Fair Market Rent —
Guest/Transient Moorings, Newport Harbor, California was completed on November 27,
2017 (Attachment A). The Harbor Commission received the report at their December 11,
2017 Commission Meeting. At that meeting, the Harbor Commission requested additional
information regarding fair market value of the slips at Marina Park, rents for dinghy racks
at both Marina Park and the Balboa Yacht Basin. In addition, Netzer studied Daily "Guest
Anchorage Rates of Non -City Owned Tackle and Large Vessel fees for the West
11-14
Anchorage (if approved sometime in the future). This addendum was completed on
March 26, 2018 (Attachment B). Both reports provide the complete analysis.
Fees
The Newport Beach Municipal Code (NBMC) Section 3.36, City Council Policy F-4
(Revenue Measures) and Item 12 of the Fiscal Sustainability Plan (FSP) provide staff and
the City Council with policy guidance related to setting cost recovery targets and updating
user fees. User fees, or cost -of -service fees are charged to a private citizen or group for
services performed or provided by a government agency on their behalf. If the service
benefits primarily an individual or group of people, then the burden of that cost should be
bore by the person receiving the benefit.
NBMC Section 3.36 sets the cost recovery for user fees at one hundred percent (100%)
with the exception of the subsidized fees listed in Exhibit "A" of that same section, as well
as those limited by California or Federal statutes. A recommendation for less than a
hundred percent (100%) cost recovery rate occurs, for example, when a service is
beneficial to the community at large along with specific individuals or groups, and/or when
there is an economic incentive, or disincentive, to do so. In these cases, the General Fund
is essentially subsidizing the service.
The City has been managing the City's mooring fields since July 1, 2017. During this
time, staff has identified a number of services that the Harbor Department performs for
those using the harbor. Harbor staff and the Finance Department along with the City's fee
consultant, MGT, have evaluated the services provided and calculated the cost of service
to individual users of the harbor.
The proposed Rent and Fee Schedule is Attachment A. Should the Harbor Commission
approve the rent and fee schedule, staff will then present the fee schedule to the City
Council for consideration. Any newly proposed fee that is not approved will be absorbed
through General Fund subsidy.
ENVIRONMENTAL REVIEW:
Staff recommends the Harbor Commission find this action exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the Harbor Commission considers the item).
11-15
ATTACHMENTS:
Attachment A — Netzer Appraisal — November 27, 2107
Attachment B — Netzer Appraisal Addendum to File No. 2017-30
Attachment C — Proposed Rent and Fee Schedule
11-16
APPRAISAL REPORT
FAIR MARKET RENT - GUEST/TRANSIENT MOORINGS
NEWPORT HARBOR, CALIFORNIA
DATE OF VALUE
NOVEMBER.27, 2017
PREPARED FOR
LAUREN WOODING WHITLINGER
REAL PROPERTY ADMINISTRATOR
CITY OF NEWPORT BEACH
COMMUNITY DEVELOPMENT DEPARTMENT
100 CIVIC CENTER DRIVE
NEWPORT BEACH, CALIFORNIA 92660
PREPARED BY
NETZER & ASSOCIATES
170 E. SEVENTEENTH STREET, SUITE 206
COSTA MESA, CALIFORNIA 92627
FILE NO. 2017-030
11-17
NETZER & ASSOCIATES
Real Estate Appraisal & Consulting
November 30, 2017
File No. 2017-030
Lauren Wooding Whitlinger
Real Property Administrator
City of Newport Beach, Community Development Department
100 Civic Center Drive
Newport Beach, CA 92660
Re: Appraisal Services
City Tidelands
Fair Market Rent — Guest/Transient Moorings ("Sub -Permits")
Dear Ms. Wooding Whitlinger:
In accordance with your request and authorization, I have undertaken the investigations and
analyses necessary to estimate the Fair Market Rent, Fee Simple Interest, in the above referenced
real property, which is the subject of this report. James B. Netzer conducted inspections of a
representative sampling the subject properties in October and November 2017.
Based upon the work undertaken and my experience as a real estate analyst and appraiser, I have
formed the opinion, as of the—27"' day of November 2017, subject to the Assumptions and Limiting
Conditions contained in this report, that the subject has the following market values:
Daily Fair Market Rent for the Off -Shore Guest/Transient Moorings ("Sub -Permits")
$1.25 per Linear Foot of Vessel, adjusted annually based on the change in the CPI.
Daily Fair Market Rent for the On -Shore Guest/Transient Moorings ("Sub -Permits")
$0.625 per Linear Foot of Vessel, adjusted annually based on the change in the CPI.
Daily Fair Market Rent "Premium" for Multi -Hull Vessels on Guest Transient Moorings
Between $0.25 per Linear Foot of Vessel and $0.50 per Linear Foot of Vessel, depending
on the beam of the multi -hull vessel, which is between 20- and 40 -Percent of the Base
guest/transient mooring fee, adjusted annually based on the change in the CPI.
Daily Fair Market Rent for "Large Vessel" (100+ LF) Off -Shore Guest/Transient Mooring
$1.55 per Linear Foot of Vessel, adjusted annually based on the change in the CPI.
"Standard Practice" associated with Fair Market "Booking Fee" for Guest/Transient Moorings
I have concluded there is no "Standard Practice" beyond the City's "cost recovery" basis
17017. Seventeenth Street. Suite 206 ♦ Costa Mesa. CA 92627 ♦ Phone (949) 631-6799 ♦ FAX (949) 631-4631
11-18
Lauren Wooding Whitlinger
November 30, 2017
Page 2
This letter of transmittal must remain attached to this Appraisal Report, which contains 21 pages
plus related exhibits, in order for the value opinions set forth to be considered valid.
I invite your attention to the following Appraisal Report that has been prepared in accordance with
the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal
Institute and is in compliance with the USPAP standards, and sets forth the data and analysis which
my opinions are, in part, predicated. Thank you for the opportunity of serving you in this matter.
Respectfully submitted,
[AI
No. AGO03143
11-19
TABLE OF CONTENTS
CERTIFICATION.......................................................................... 1
INTRODUCTION.......................................................................... .I
AREA DESCRIPTION..................................................................... 7
HIGHEST AND BEST USE............................................................... 8
APPRAISAL PROCEDURES ............................................................. 9
FAIR MARKET RENT ANALYSIS ..................................................... 10
VALUATION............................................................................... 18
ADDENDA................................................................................. 20
11-20
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
CERTIFICATION
To the best of my knowledge and belief, I certify that:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions and conclusions.
I have no present or prospective interest in the property that is the subject of this
report, and have no personal interest or bias with respect to the parties involved.
I have performed no services, as an appraiser or in any other capacity, regarding
the property that is the subject of this report within the three-year period
immediately preceding acceptance of the this assignment.
I have no bias with respect to the property that is the subject of this report or to the
parties involved in the assignment.
My engagement in this assignment was not contingent upon developing or
reporting predetermined results.
My compensation is not contingent upon the reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value
estimate, the attainment of a stipulated result, or the occurrence of a subsequent
event.
The reported analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute, which
include the Uniform Standards of Professional Appraisal Practice.
The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
I have made a personal inspection of a representative sampling of the property that
is the subject of this report.
In accordance with the USPAP Competency Provision, I certify that I have the
knowledge and experience to complete this assignment and have appraised this
property type before.
Disclosure of the contents of this appraisal review is governed by the Bylaws and Regulations of
the Appraisal Institute. In furtherance of the aims of the Institute to develop higher standards of
professional performance by its Members, the appraiser may be required to submit authorized
committees of said Institute copies of this report and any subsequent changes or modifications
thereof.
The Appraisal Institute conducts a voluntary program of continuing education for its designated
members. MAI's who meet the minimum standards of this program are awarded periodic
educational certification. As of the date of this report, James B. Netzer has completed the
requirements under the continuing education program of the Appraisal Institute.
11-21
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
I have personally conducted an inspection of a representative sampling of the off -shore moorings
located in Newport Harbor, which are the subject of this report. Based upon my investigation and
analysis, I have formed the opinion that the Daily Current -Fair Market Rent for Off -Shore
Guest/Transient moorings ('`Sub -Permits") in Newport Harbor, as of November 27, 2017, is:
$1.25 per linear foot of vessel, adjusted annually based on the change in the CI'I.
Based upon my investigation and analysis, I have formed the opinion that the Daily Current Fair
1\1arkct Rcpt for On -Shore Guest/Transient moorings ("Sub -Permits") in Newport Harbor. as of
November 27. 2017, is: $0.625 per linear foot of vessel. adjusted annually based on the change in
the CPI.
Based upon my Investigation and analysis, I have formed the opinion that the Daily Current Fair
i\,larket Rent "Premium" for Guest/Transient moorings in Newport Harbor for multi -hull vessels
\vliose beam is greater than a "typical" mono -hull, as of November 27, 2017, is: between $0.25
per Linear Foot and $0.50 per Linear Foot, depending on the beam of the multi -hull vessel, which
is a premium of 20 -percent to 40 -percent of the Base guest/transient mooring fee, adjusted annually
based on the change in the CPI.
Based upon my investigation and analysis, 1 have formed the opinion that the Daily Current Fair
[vlarket Rent for "Large Vessel" (100+ LF) Off -Shore Guest/Transient mooring in Newport
I-larbor, as of November 27, 2017, is: $1.55 per linear foot of vessel, adjusted annually based on
the change in the CPI.
Based upon my investigation and analysis. I have formed the opinion that the "Standard Practice"
for "booking fees" associated with the administrative costs of frequent renewals, as of November
27. 2017 is: 'there is no "Standard Practice" beyond the City's "cost recovery' basis.
Respectfully submitted,
Al
No. AG003143
11-22
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
INTRODUCTION
Purpose of Report
The purpose oi�this report is to set forth the data, analyses, and conclusions relative to my opinion
of: 1) the Current Fair Market Rent for the "Guest" or "Transient" moorings ("Sub -Permits")
located upon City managed tidelands throughout Newport harbor; 2) the Current Fair Market
Rental "Premium" for multi -hull vessels whose beam is greater than a "typical" mono -hull; 3) the
Current Fair Market Rent for Large Vessel (over 100 LF) Off -Shore Guest/Transient mooring;
and. 4) the "Standard Practice" for "booking fees" associated with the administrative costs of
frequent rciwwals.
Function of Report
The function of this report is to estimate the above Fair Market Rent and/or procedures associated
with the "Guest" or -Transient" moorings for the City's internal purposes. The appraisal is made
Lit the request of the City of Newport Beach by Lauren Wooding-Whitlinger, Real Property
Administrator, Community Development Department, who is the intended user of this report. In
the event that this matter proceeds to trial or other governmental or administrative hearing, the
Trier -of -Fact will become an intended user.
Date oi� Value
"fhe date of value presented in this report is October 24, 2017. Given the number of properties
involved in this report not every property was inspected individually and inspections of a
representative sampling of the off -shore moorings and the surrounding environs were completed
during October 2017.
Scope of Investigation
This report conveys the results of my investigations and analyses concerning the subject property.
The report includes a summary of the information utilized and the methodology used in
determining an estimate of value.
Interest Appraised
The interest appraised and considered in this appraisal include the Fee Simple Estate, under the
assumption that the subject moorings will eventually be leased. The term "Fee Simple Estate'/
is defined as follows:
Absolule oivnei•ship unenczunbered 1 y any olher interesl or estate, subjecl on/vto
the lilnilations imposed by the gover171uenlal poii,ei•s of laxation, eminew clomai/7,
police poiver, and escheat.
Appraisal Institute. The Dictionary of Real Estate Appraisal. Fourth Edition. (Chicago. 2002).p. 113.
11-23
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
N,Iarlcet Rent Defined
The term "Market Rent"/'-, as used in this report, is defined as follows:
The most probable rent that a property should bring in a competitive and open
mal'kel 1'eflL'Cln1g all C011d11t011S andYCSlrtcl1o11S Of ll1C' SpeclflL'd lease Clgl'G'G'17Jent
including, lean, rental adjustment and revaluation, permitted arses, use restrictions,
and expense obligations: the lessee and lessor each acting prudently cmd
knolrleclgeably, and assuming consztnnnation of a lease contract as of 'a specified
dale and the passing of the leaseholcl.fi•ont the lessor to the lessee under conditions
trhereh ,.
I . Lessee and lessor and are typically motivated;
?. Both parties are well-informed or well advised, and acting in what they consider
their own best interests;
3. A reasonable time is allowed for exposure on the open market;
4. The rent payment is made in cash in United States dollars, and expressed as an
amount per time period consistent with the payment schedule ole the lease
contract: and
5. The rental amount represents the normal consideration for the property leased
unaffected by special fees or concessions granted by any one associated with
the transaction.
Probabilitv of Change
The opinion of value is based upon my knowledge of conditions as of the elate of this report.
Constantly changing economic, social, political and physical conditions have varying effects upon
real property values. Even after the passage of a relatively short period of time, property values
play change substantially and require a review based on differing market conditions.
Legal Descriptions
I have not been provided with the legal description of the property; however, this does not impact
the analysis or conclusions presented.
Owner of Record and Property History
It is assumes that title to all of the submerged tideland properties being appraised is vested in the
City of Newport Beach or the State of California and administered by the City of Newport Beach.
Unless specifically addressed in this report, none of the properties have transferred or been
encumbered with long term leases in the recent past.
Assumptions and Limitiny- Conditions
The analyses and opinions in this report are subject to the following aSSLllllptlons and limiting
conditions:
Appraisal Institute, The Dictionary of Real Estate Appraisal. fourth Edition. (Chicago. 2002). p. 176.
4
11-24
Newport Harbor Guest Moorings
Newport Beach, California Nove►nber 30, 2017 NETZER & ASSOCIATES
Specific
The ['air Market Rent analysis presented is completed on a "global" basis for all off -shore
ouest/transient moorings and applies to all moorings located upon the tidelands in Newport Harbor
under the jurisdiction of the City of Newport Beach. The current use set forth in the report is
assumed to be the Highest and Best Use, as it is beyond the scope of this assignment to assess the
Highest and Best Use of each submerged tideland property. I reserve the right to make such
adjustments to the analysis, opinions and conclusions set forth in this report as may be required by
consideration of additional data or more reliable data that may become available.
General
No investigation of title to the property has been made, and the premises are assumed to be free
and clear of all encumbrances, leases, use restrictions. easements, cases or actions pending, except
as specifically discussed in this report. Title is assumed to be good and marketable, and that the
property IS under responsible ownership, competent management and available for its highest and
best use.
No survey, legal, or engineering analysis of this property has been made by the appraiser. I assume
no responsibility for any condition not readily observable from the customary inspection of the
premises, and that there are no hidden or unapparent conditions of the property, subsoils or
structures that render it more of less valuable, except as noted herein.
The distribution, if any, of the total valuation in this report between land and improvements applies
only under the stated program of utilization. The separate allocation for land and buildings must
not be used in conjunction with any other appraisal and are invalid if so used.
The maps, plats, photographs, and exhibits included herein are for illustration only, as an aid in
visualizing matters discussed within the appraisal. They should not be considered as surveys nor
relied upon for any other purpose, nor should they be removed from, reproduced, or used apart
frons this report.
I assume no responsibility for economic or physical factors, which may affect the opinions herein,
stated which might occur at sone date after the date of value. I reserve the right to slake such
adhUstnlents to the analysis, opinions and conclusions set forth in this report as slay be required by
consideration of additional data or more reliable data that may become available.
Information contained in this appraisal has been gathered from sources, which are believed to be
reliable. and where feasible, has been verified. No responsibility is assumed for the accuracy of
information supplied by others.
No opinion is expressed as to the value of sub -surface oil, gas, or mineral rights, or xvllether the
property is subject to surface entry for the exploration or removal of such materials except as
expressly stated.
The property is appraised assuming to be in full compliance with all applicable federal, state, and
local environmental regulations and laws, unless otherwise stated.
The property is appraised assuming that all applicable zoning and use regUlatlons and restrictions
have been complied with, unless otherwise stated.
The property is appraised assuming that all required licenses, certificates of occupancy, consents,
or other legislative administrative authority from any local. state. or national government or private
entity or organization have been or can be obtained or renewed for any use on which the value
estimate contained in this report is based, unless otherwise stated.
11-25
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
The Americans with Disabilities Act ("ADA") became effective .January 26, 1992. The appraiser
has not Made a specific compliance survey and analysis of this property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property, together with a detailed analysis of the requirements of the
ADA. could reveal that the property is not in compliance with one or more of the requirements of
the Act. If so, this fact could have a negative effect upon the value of the property. Since the
appraiser has no direct evidence relating to this issue, possible noncompliance with the
requirements of the ADA in estimating the value of the property has not been considered.
Unless otherwise stated in this report, the existence Of hazardous material, which may or may not
be present on the property, was not observed by the appraiser. The appraiser has no knowledge of
the existence 017 such materials on the property. The appraiser, however, is not qualified to detect
SLIeII Substances. The presence Of substances such as asbestos, Llrea IOrnialdchyde 66arn insulation,
or Other potentially hazardous inaterlals may affect the value Of the property. The value estimate
Is predicated On the assumption that there is no material On or in the property that \VOUld cause a
loss in value. No responsibility is assumed for any such condition, or for any expertise or
engineering knowledge required to discover them. The client is urged to retain an expert in this
field, if desired. If the client is aware or becomes aware of any conditions, the appraiser should be
consulted immediately to assess the impact, if any, upon the market value.
"flee appraiser reserves the right to make such adjustments to the valuation herein reported, as may
be required by consideration of additional data or more reliable data that may become available.
No opinion is intended to be expressed, or implied, for matters, which require legal expertise or
specialized investigation or knowledge beyond that customarily employed by real estate
appraisers.
I shall not be required, by reason of this appraisal, to give testimony or to be in attendance in court
or any governmental or other hearing with reference to the property without prior arrangements
having First been made with me relative to such additional employment.
Possession of this report, or a copy thereof does not carry with it the right of publication. It may
not be used for any purpose by any person other than the party to whom it is addressed without the
\\,ritten consent of the appraiser. I do not authorize out of context quoting, or partial reprinting of
the report. In the event the report is placed in the hands Of a third party, it is requested that such
party he made cognizant of any and all limiting conditions resulting in the basis Of lily employment
and the discussions thereto, as well as those set forth herein.
TIIC Submission of this report constitutes the completion of the service authorized. It is submitted
upon the condition that the client will provide the appraiser customary compensation relative to
any subsequent required deposition. conferences, additional preparation or testimony.
Tlie appraiser respectfully requests that neither all nor part of" the contents of this report shall be
disseminated to the public through advertisement, public relations. news. sales, or other media,
Without written consent and approval of the author. particularly the valuation conclusions, the
identity of the appraiser, or any reference to the Appraisal Institute or the MAI designation.
In the event the appraiser is subpoenaed for a deposition, judicial or administrative proceeding,
and is ordered to produce his appraisal report and rile, the appraiser \kill immediately notify the
employer.
It shall be the responsibility of the employer to obtain a protective order.
R
11-26
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
1'he liability ofNetzer & Associates and the appraiser responsible for this report is limited to the
client only and to the fee actually received by the appraiser. Further. there is no accountability,
obligation or liability to any third party. If this report is placed in the hands of anyone other than
the client. the client shall make such party aware of all limiting conditions and assumptions of the
assignment and related discussions. The appraiser is in no way responsible for any costs incurred
to discover or correct any deficiencies of any type present to the property -- physical, financial,
and/or lcual.
It is agreed that the appraiser is not a necessary party in any inquiry or judicial proceedings. If
called upon to testify in any litigation or other proceeding arising out the duties in this matter. and
is compelled to incur court costs, attorney's fees or other out-of-pocket expenses in connection
With court proceedings, such costs or expenses, together with the appraisers' usual hourly per diem
applicable for study, preparation, testimony or travel will be paid by the party (or parties) who acts
to bring allV Suit requiring a judicial proceeding.
Any dispute or claim made with respect to this report shall be submitted to and resolved in
accordance with the rules of the American Arbitration Association for arbitration, and the decision
of the Association shall be binding. All appraisal services. pursuant to this report, shall be deemed
to be contracted for and rendered in Orange County. California. and any arbitration or judicial
proceedings shall take place in Orange County, California.
"I'he signatory of this appraisal report is a member of the Appraisal Institute. "file Bylaws and
Regulations of the Institute require each member to control the use and distribution of each
appraisal report signed by such member. "Therefore, except as hereinafter provided, the party for
\\-horn this appraisal report was prepared may not distribute copies of this appraisal report, in its
entirety, without the written consent of the signatory of this report. Tile report and parts thereof
and any additional material submitted, may not be used in any prospectus or printed material used
Ill conjunction with the sale of securities or participation interests in any Public Offering as defined
Wider US Security laws. Further, neither all nor any part of this appraisal report shall be
clisseminated to the general public by the use of advertising media, public relations media. news
media. sales media, or other media for public communication without the prior written consent of
the signatory of this appraisal report.
ARCA DESCRIPTION
Newport Harbor is the focal point of the incorporated city of Newport Beach. which is located in
coastal Orange County approximately 10 miles southwest of the Santa Ana Civic Center. The
coastal city was incorporated on September 1, 1906. The City reports an estimated population of
86.688 persons as of 2016, an increase from 85,186 persons as of the 2010 Census. According to
the Citv Chamber oi` Commerce, the influx of the tourist population during the summer months
increases the population to over 100,000 persons.
Newport Beach is located 85 miles north of San Diego. 14 miles south of Long Beach and 50 miles
from downtown Los Angeles. "The City's elevation ranges from sea level to 691 feet. With the
annexation ol'Newport Coast, the City is comprised of approximately 25 square miles of land area.
approximately 25.5 square miles bay, harbor and ocean waters for a total area of approxinnately
50.5 square miles. The city has 6.1 miles of ocean frontage and 25.4 miles of harbor frontaue.
11-27
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
Newport Harbor is one Of the largest pleasure craft harbors on the West Coast and is home to
approximately 5.000 boats at residential slips, commercial marinas and moorings.
Newport Harbor is formed by the Balboa Peninsula Oil South and the (Mainland Oil the North and
extends inland to Jamboree Road and the north end Of the Upper Newport Bay (Back Bay). -File
primary focus of this assignment is the Lower Newport Bay, \yhich is generally defined as the
\\°.iter area south of the Coast Highway Bridge near the intersection of Coast Highway and Dover
Drivc. Traditionally, most of the boating activity within the harbor is concentrated in the Lower
13av as most of' the Back Bay is an ecological preserve with limited boating facilities (Newport
Dunes. Newport Aquatic Center, U.C.I. Rowing base, Bayside Village and Dover Shores). The
l3alboa Peninsula consists of all the contiguous land east of 45`I' Street extending to Peninsula Point
and the jetty at the Mouth OI Newport Harbor. The South Side Ole the Peninsula consists of sandy
beaches Oil the Pacific Ocean While the north side of the Peninsula fOrllls the southern perimeter
ol'Newport Harbor.
HIGHEST AND BEST USE
"Highest and Best Use" is an appraisal concept Which is defined in The Dictionary of Real Estate
r\ppraisal. "Third Edition, as follows:
The reasonably probable and legal use cif vacary lane/ or an improvecl property,
u7lrich is physically possible, crppropricr�ely srr��porled, firrarrcicrlly feasible, and ihat
results in the highest value. The .four criteria that must be met are legal
permissibility, physical possibility,.fincmcicil,fecisibilily, owl nraximrrm profitability.
Inherent in this definition are several conditions, which must be satisfied by the existing or
proposed use in order to develop the maximum value. The use must be physically possible for tine
site. Soil condition, topography, size and shape must be compatible with the proposed use. The
use must be legally permissible in that it must conform t0 current or protected zoning. Similarly.
the use must not be precluded by deed restrictions or other encumbrances, which may limit
potential uses. Also, the use must be economically feasible. The market should indicate sufficient
economic demand so as t0 support a proposed use of the site. Among the various uses that meet
the above criteria. the use which creates the greatest rate of return and maxiriuun productivity is
considered to be the highest and best use of the site.
Highest and Best Use Criteria - As If Vacant/As-Improved
A complete Highest and Best Use study of the submerged tidelands is beyond the scope of this
a si(Illllent. The analysis presented is oil a "global"' basis and It is a Speci flc aSSLllllptiOIl 01. the
report that the Highest and Best Use of the tidelands properties "as i l' vacant" and "as improved"
is for "otl=shore'' moorings regardless of the time period (permanent or guest/transitory) that the
1110011110 IS LISed.
8
11-28
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
APPRAISAL PROCEDURES
The appraisal of real property generally involves one, two or three of the conventional approaches
to value, and is based upon consideration of market -derived data, the experience of the appraiser,
and opinions of other informed market participants.
Valuation Approaches
Three basic approaches to value are available to the appraiser: the Cost Approach, the Income
Approach, and the Direct, or Sales Comparison Approach.
Cost Approach
This approach entails the preparation of a replacement or reproduction cost estimate
of the subject property improvements new (maintaining comparable quality and
utility) and then deducting for losses in value sustained through age, wear and tear,
functionally obsolescent features, and economic factors affecting the property. The
land value is then added to the depreciated cost along with an allowance for
entrepreneurial profit to arrive at a value estimate.
Income Approach
This approach is based upon the theory that the value of property tends to be set by
the net income that is to be realized by the owner. It is, in effect, the capitalization
of expected future income into a present worth estimate. This approach requires an
estimate of potential gross income, an analysis of all expense items, the selection
of a capitalization rate, and finally, the processing of the net income stream into a
value estimate.
Sales Comparison Approach
This approach is based upon the principle that the value of a property tends to be
set by the price at which comparable properties have recently been sold or for which
they were acquired. This approach requires a detailed comparison of sales of
comparable properties with the subject property.
Approaches Used in the Valuation of the Subject
The Sales (or Lease) Comparison Approach is a process of comparing lease rates paid for similar
properties, prices asked by owners, and offers made by prospective Lessees. The approach
presents good evidence of value because it represents the actions of buyers and sellers, or in the
case of leased properties Lessee's and Lessor's. The Sales (or Lease) Comparison Approach is
based on the principle of substitution, which implies "the value of a property tends to be set by the
price that would be paid to acquire a substitute property of similar utility and desirability within a
reasonable amount of time."/3 Given the preceding discussion, and the interactions of market
participants, the Sales (Lease) Comparison Approach is the most relevant approach in estimating
the Fair Market Rent and is used in this report.
'Appraisal Institute, The Appraisal of Real Estate, Eleventh Edition, (Chicago, 196), p.398.
I
11-29
Newport Harbor Guest Moorings
Newport Beach, California :November 30, 2017
FAIR MARKET RENT ANALYSIS
Introduction
NETZER & ASSOCIATES
As noted in the Introduction, the purpose and function of this report is to estimate the Current Fair
IN/larket Rent for the guest/transient moorings throughout Newport Harbor in addition to any
"premium" for multi -hull vessels and a "resort fee" for use of "11011 -Public" Marina Park facilities.
Analysis - Guest/Transient Moorings ("Sub -Permits")
Tl1e following table Is a summary of the mooring information uncovered that is judged to be
relevant to the Newport Harbor guest/transient moorings ("'Sub -Peri -nits").
MARKET RENT SURVEY -GUEST/TRANSIENT MOORINGS
OCTOBER 2017
Data No.
Vessel
Total
Monthly Rent
Location
Total
Length
Daily
S/Linear Ft.
Maximum
Management/Administration
Moorings
(LF)
Rent
(Vessel LF)*
Term
I/
Avalon Harbor, Descanso Bay &
340
Up to 30'
$37.00
$1.23
See
Hamilton Cove
31' to 39'
$41.00
$1.17
Comments
Catalina Island
40' to 49'
$50.00
$1.11
City, of Avalon
50' to 59'
$61.00
$1.11
60' to 69'
$80.00
$1.23
70' to 79'
$98.00
$1.31
80' to 89'
$1 1 1.00
$1.31
90' to 99'
$132.00
$1.39
1001+
$149.00
S I.49
2/
4°i of .ILII)', Cherry. Hen Rock,
0 to 29'
$39.00
$1.30
2 weeks
Whites & Moonstone Coves
222
30' to 39'
$49.00
S 1.40
Catalina Island
(combined)
40' to 49'
$57.00
S1.27
Catalina Island Company
50' to 59'
$70.00
$1.27
60' to 69'
$81.00
$1.25
70' to 79'
$95.00
$127
80' to 89'
$115.00
$1.35
90' to 99'
$131.00
$1.38
1001+
$152.00
$1.52
'"eased on nud-Point of vessel length range.
l
11-30
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017
NETZER & ASSOCIATES
MARKET RENT SURVEY - GUEST/TRANSIENT MOORINGS (continued)
OCTOBER/NOVEMBER 2017
Data No.
Vessel
Total
Monthly Rent
Location
Total
Length
Daily
$/Linear Ft.
Maximum
Management/Administration
Moorings
(LF)
Rent
(Vessel LF)Y
Term
2a/
Isthmus. limcrald, I -lowlands, Little
496
0 to 29'
$38.00
$1.31
2 weeks
Geiger. Buttonshell Coves & Cat
(combined)
30' to 39'
$46.00
$1.31
Harbol•
40' to 49'
S54.00
$1.20
Catalina Island
50' to 59'
$67.00
S1.22
Catalina Island Conlpany
60' to 69'
$78.00
$1.20
70' to 79'
$91.00
S1.211
80' to 89'
Sl 10.00
S 1.29
90' to 99'
$125.00
$1.32
100'+
S145.00
S 1.45
3/
Belmont Pier & Island White
20
30' to 100'
Based on
S1.00
15 days
Long Beach (Outer Harbor)
(permitted for
Vessel
Belmont Moorin(; Company
T total)
Length
4/
King Harbor
50
26' to 40'
$24.00
S0.72
7 days
1Zcclondo Beach
41' to 50'
$30.00
S0.67
Reclondo Beach Marina
51' to 60'
S36.00
50.65
5/
Ylorro Bap
3
36' Min.
Based on
$0.28
None
City ol'Morro Bay
Vessel
Length
Morro Bay
6
Up to 40'
$20.00
$0.50
30 days in
Morro Bay Yacht Club
40' to 50'
$25.00
$0.56
6 months
6/
Port San Luis
20
5S
$16.00
Fixed Fee
14 days
Avila Beach
(pulled in
Maxinn(nl
Port San Luis Harbor District
Winter)
7/
Pillar Point Harbor
38
45'
$11.00
Fixed Fee
None
Half Moon Bay
MaxinTLull
San Mateo County
8/
Monterey Harbor
2
Up to
S15.00
Fixed Fee
30 days
Monterey
15.000 lbs.
/6 Months
City of Monterey
9/
Balboa Yacht Club - Reciprocal
Varies oil
Varies
N. A.
$1.50
None
Newport Beach
occupancy
Balboa Yacht Club
"Based on mid -pont( of vessel length rage.
The information included in the table above is judged to be most comparable to the subject. Other
harbors were surveyed and either do not currently have guest/transient moorings (Port of San
Die(lo. Oceanside. Dana Point, Huntington Harbor. Alamitos Bay/Lone Beach, L.A.. Nlarina del
Rev. Channel Islands. Santa Barbara & Santa CRIZ) or offer either free LICSt/tranSlent mool'Ings
11-31
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
or an Open "Cruisers" anchorage (Port of San Diego, Mission Bay) with a 72-1101.11' time limit. It
Should be noted that all of the harbors that do not have guest/transient moorings offer guest slips
rentals at a general rate between $1.00 and $1.50 per linear foot.
Guest/Transient mooring Comparable Rental One is the privately owned moorings that are
administered by the City of Avalon and includes Avalon Harbor (257 moorings), Descanso Bay
(47 moorings) and Hamilton Cove (36 moorings). All moorings In this area are privately owned
and available on a guest/transient basis when the rnoorino owner is not usingthe mooring. "Clic
mooring that is assloncd by the City, is not guaranteed for any extended term and the vessel may
iieed to be relocated each day. The maxilllUM term that a mooring may be Occupied is dependent
Oil the mooring ONyllel'�S use and n0 rnaxi111Um term was reported. Pees are payable in advance and
un the clay of departure the mooring must be vacated by 9:00 a.m. The claily Ices vary based on
10-f0ot increments and the price per linear foot in the table is calculated based oil the mid -point OI'
clic ranee. It was reported that there is no additional fee for a 1111.11t1-111.111 vessel but it was Noted
that not all moorings will accommodate a multi -hull vessel. It Should be Voted that the City of
Avalon off-ers '`special rates" for moorings from September 15`x' to October 14`1' and Palm Sunday
through .lune 15t1i (pay 4 nights, get next 3 consecutive nights free) and October 15t1i thrOUG Palm
Sunday (pay 2 nights get next 5 consecutive nights free).
Comparable Rental Two and Comparable Rental 2a reflect the guest/transient mooring fees for
several coves Surrounding Catalina Island that are owned and managed by the Catalina Island
Company. There is a slight price difference based oil the location of the coves. There is a
maximum consecutive stay of 2 weeks. "there is an on-line reservation system that includes a $25
bool:ulg fee dUrino regular weekends that is added to the mooring fee and some holiday
v-veekends (N/lernorial Day, 4"' of.luly, Labor Dav & Buccaneer Days) may incur an additional fee.
Reservations require a two day stay during regular weekends and three days Oil holiday weekends.
']'lie reservation system guarantees a mooring in a specific cove and opens at 10:00 p.m. oil
'11h111'S&V until the following Monday and may only be Used for the corns (, weekend. Like the
gl1CSt/tl'al1SIC111 moorings in Avalon. the fees are broken down 111 I0-IOOt increments and the pricc
per linear IOOt Is based On the mid -point Of the range. The lllanagelllent reported that they d0 not
charge all additional fee for multi -hull vessels. It was Further reported that even though they have
a lot Oftrafiic during the winter months they have a special rate frons Palm Sunday through early -
.4111C that permits payment of two days and the next 5 consecutive days are Free.
Comparable Rental Three is a group of mooring that are located between the Belmont Pier and
Island \N IlitC in the outer Long Beach Harbor. "elle operator is a private company that has a permit
to allow 75 `UIUCSt/transient moorings. 'rhe program commenced Ill the SL1111111Cr 01`2014 and a total
of 20 moorings have been installed. The moorings will accommodate vessels between 30- and
12
11-32
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
100 -Feet and the daily rate is $1.00 per linear foot. They also offer a 3 hour daily rate of $20.00.
The moorings are "single -point' moorings and the vessels swing with the wind and tides. It was
reported that due to the single -point mooring system, some multi -hull vessels are required to lease
two moorings so the), do not crowd other vessels in the mooring field. The nlaxi11 UM single stay
is 15 consecutive days with a maximum of 156 days per year.
::oniparable Rental Four includes 50 guest/transient moorings that are In Iting Harbor (Redondo
Beach) and were installed in 2014 by the City. They have three sizes that are rented on a fixed I'ce
lxlsls ($24.00, $30.00 & $36.00) and the price per lineal' foot that ranges from $0.65 to $0.72 based
(111 the mid-range ofeach I0-1'Oot increment. '['here is no additional charge 101• I11Ldtl-llLlll vessels
alld a 7 day maximL1111 stay. It was reported that the city has recently, translcrl•ed the lllanagc cent
11m111 tale City to a private company in anticipation that thev will generate more interest from
transient boaters.
Nlorro Bay Harbor is included as Comparable Rental Five and has three guest /transient moorings
that are city owned and rented for $0.28 per linear foot, with a minimum vessel length of 36 -feet.
The city reports there is no maximum stay, with no amenities provided. There is no additional fee
I'01- multi -hull vessels; however, they have a $177 daily mooring fee for "large vessels" or those
"requiring special accommodations". The Morro Bay Yacht Club (a volunteer run yacht club) has
SIX transient/guest moorings that are rented on a fixed fee basis that reflects a daily rate of $0.50
to $0.56 per linear foot. They have a maximum stay of 30 -days within any 6 -month period. They
provide shower and restroom facilities that are included in the daily fee and provide access to their
har (Friday night).
Comparable Rental Six includes approximately 20 guest/transient moorings that are owned and
administered by the Port San Luis Harbor District. These moorings are available for a portion of
the year and reportedly they are pulled during the winter months. They will accommodate vessels
L11) to 554eet and they are rented on a fixed fee of $16.00 per day. with a maximum stay of 14
clays. It \vas reported that there is no additional fee for multi -hull vessels. The San Luis Yacht
Club has an undisclosed number of moorings that are available to members of reciprocal yacht
Clubs at a rate of $15.00 per day frons April 1" through October 31 ". with a 14 -day rnax1111LIM stay.
The moorings will accommodate vessels up to 56 -feet.
Pillar Point Harbor is located in Half Moon Bay and included as Comparable Rental Seven. The
(Iuest/transient moorings are administered by San Mateo County. There are 38 guest/transient
nloorin0s that will accommodate vessels up to 45 -Feet. The daily fee is $11.00 regardless of tllc
vessel lenoth with no additional fee for multi -hull vessels. The fee includes access to coin-operated
restroom and shower facilities.
13
11-33
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
Comparable Rental Eight is for the two guest/transient moorings that are located in the Last
\Mooring area in NVfonterev Harbor. 'File guest/transient rnoorinL,S d0 not have a restriction on
vessel length but is based on the vessel tonnage and thele is no difference in the fee charred for a
1111.11t1-111,111 vessel_ The guest/transient moorings are rented oil a fixed fee basis of $15.00 per day
and guest arc limited to a lllaxill1L1111 of 30 days within any 6-month period. There is a $20 charge
101' a marina shower key. It \Vas reported that the riloorino s in the Outer Harbor Area are all leased
on a lotto-term basis and there are no other guest/transient moorings.
The Balboa Yacht Club is included as Comparable Rental Nine and I'Clel'S to the guest/transient
moorings that are rented to members of yacht clubs that have a reciprocal agreement with BYC
and are not offered to the general public. The Balboa Yacht Club has a total of 70 moorings in the
basin in Front of the yacht Club that are rented to the membership- ho\\'ever. the\, Offer them oil a
guest/transient basis when they have a vacant mooring (if it is leased it is not offered as a OuCSt
mooring even if the member's vessel Is not Occupying the 111001'lllg). The number and length of
the guest/transient moorings varies depending on what is vacant and the fee is $1.50 per vessel
linear Toot and they do not charge all additional fee for 1111.11ti-111.111 vessels. The guest/transient
mooring fce includes shore boat service. It was noted that they do have "specials" with reciprocal
Clubs that offer BYC members the same "special".
\Vith regard to the comparable rental data presented. Comparable Rentals One and Two and Nine
al'e JUdoed t0 be most comparable t0 Newport Harbor and Comparable Three IS jUdged to be
slightly inferior. Comparable Nine reflects guest/transient moorings in Newport Harbor; however.
the), are limited to guests that are members Of reciprocal yacht Clubs and includes the use (for a
Ice) of yacht Club facilities and defines the upper limit ($1.50/1,h) oithe Pair Market Rental range.
Comparable Rental Three has been operating for a limited time and the Outer Long Beach Harbor
is not a well-known stop-over and is not as desirable as Newport Harbor and defines the lover
limit ($ 1.00/1-F) of the guest/transient mooring Fair Market Rent range.
'l hC "LICSt/transicrit moorings at Catalina Island are Judged t0 be most similar t0 Newport Harbor
1111CI Most Ofthe guest/transient moorings are reportedly used by boatel's ((•0111 Southern California.
'I11C rent per linear Foot of vessel ranges from $1.11 per linear foot t0 $1.52 per linear foot. with
most in the $1.20 to $130 per linear foot range. Comparable Rentals Three (judged to be inferior)
alld Nine (jLICI`(,Cd t0 be Superior) bracket this range and suggest that the Wild-point of the rent per
linear foot reflected by the Catalina guest/transient moorings is reflective ofthe Current Fair Market
Rent for the guest/transient moorings in Newport Harbor.
On the basis of the market data presented above. and placing most emphasis on Data Items One.
Two. Three and Nine. I have concluded that the guest/transient off=shore nloorin-s (`'Sub-
11cl-nits") located over City managed tidelands throughout Newport Harbor have a Pair Market
14
11-34
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
RentaL as of November 27, 2017, of: $1.25 per (vessel) Illlear foot, adlLlSied a11l1L1a11)' by the change
in the CPI.
1 lie Cltv has a limited number of "oil -Shore" moorings that can accommodate vessels up to 18-
1eet in length. During the course of completing this assignment I did not Lincover any, Other on-
shore moorings that could be considered comparable in estimating the guest/transient rental rate.
As of the date of�this appraisal report,. the City o1'Newport Beach charges and annual rate ol�$17.71
per linear for oil -Shore moorings, which compares with a rate of $35.43 per linear foot by off -shore
inoorlllg permit holders. The mooring permit fee paid in Newport Harbor IOP all oil -Shore moorino
is 50.0 percent ($17.71 /LF -:- $35.43/LF = 0.499) less that the fee paid Tor in ol'f=shore moo1'1110.
Recoonizino the dearth of comparable on -shore mooring rentals. the limitations on vessel size
between the on -shore and off -shore moorings and the fees being paid by mooring permit holders
in Newport Harbor. I have concluded that guest/transient on -shore moorings ("Sub -Permits") have
a Fair Market Rental', as of November 27, 2017, of. $0.625 per (vessel) linear toot, adjusted
annually by the change in the CPI.
Aiialysis - Guest/Transient Mooring — Multi -Hull "Premium"
As set forth in the tables above, with the exception of Comparable Rental Three. none of the
anchorages charge an additional fee for multi -hull vessels. It was noted that there are a limited
number o1' moorings that can accommodate a multi -hull vessel and the parties interviewed
indicated they do not have many requests for multi-I1u11 vessels at guest/transient moorings. The
Belmont Mooring Company (Comparable Rental 3) requires that multi -hull vessels rent two
moorings if the vessel will crowd other vessels in the mooring tielcl. The City of Avalon and the
Catalina Island Company report that they have a limited riLimber of moorings that will
accommodate a Il1LIlt1-111.111 vessel and often they either turn them awav or recommend that they
stay in the anchorage area. The City of Morro Bay (Rental 5) has a daily lee of $177 for "large
vessels" or those that "require special accommodation', and while they do not define are "large
vessel" they report a "large vessel' generally measures 100 -plus feet. ASsu111i110 a minimum vessel
length of 100 -feet, the large vessel fee is $1.77 per linear foot, as compared to $0.25 per linear foot
for a standard vessel.
In Los Angeles Harbor, Leeward Bay Marina (611 N. Henry Ford, Wilmington) has a floating
clod: (no utilities & dinghy access only) that is across the channel frons their main marina that
accommodates both mono- and multi -hull vessels between 30' and 50'. The iloating docks is not
available oil a guest/trallSlellt basis. but the lease rate for a 1110110-IILIII vessel is $7.00 per linear
loot and the 111L11ti-hull vessel rate is $8.00 per linear foot. 011 a percentage basis, the 111U1ti-111111
ice reflects a -"premium" of 14.25 -percent relative to a similar inono-hLlll fee. It should be Noted
that the long-tcr(17 lease rate for their marina slips range frons $1 0.00 t0 $12.00 per linear foot.
15
11-35
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
A second marina in Los Angeles Harbor (Al Larson, Berth 258 1046 Seaside Avenue. San Pedro)
reported that clue to an increased interest in n1L11ti-hull moorings thev are considering an increase
in the month-to-month rate of $8.00 per linear foot that is charged to both mono- and 1111.11t1-hull
Vessels.
Santa Cruz Harbor does not have guest/transient mooring; however. they do have a limited number
01 "LICSt/trallSlCllt slips and also require "rafting" to accommodate additional "Llest/transltlonal
berthing on the end-ties. They charge $1.25 per linear foot for 1110110-hulls up to 504eet and $1.50
per linear foot for all multi-hull vessels and mono-hulls over 50-17eet. This reflects a "prenliunl"
ol'20-percent for a multi-hull vessel as compared to a similar size nolo-(lull.
At Channel Islands Harbor, the Peninsula Yacht Marina and the Bahia N/larina calculate their
111011thly slip Ices based on a weighted formula relating to the amount ofspace used by a particular
size slip and not upon the linear length of the slip recognizing that a longer vessel generally has a
orcater beam; therefore, the larger the slip the higher the price per linear foot of slip space. The
smallest slips with the narrowest beam rent on a long-terns basis in the $11.00 per linear foot ranee.
while the larger slips \with the widest beam are in the $16.50 per linear foot range. The higher
price per linear loot also is due to a supply/demand imbalance for the larger slips, but reflects a
prenliunl of 50-percent for slips with a greater beam that require more tidelands space as a result
of'the wider beam.
One of the parties interviewed suggested that a "premium' Could be based on a "Length-to-Beans"
ratio. The ratios) would be established for the "typical" 1110110-hull vessel, and mono-hull vessels
that ball \\ lthin this range are Charged the *"base" "Llest/transient moorino fee of- $1.25 per linear
loot (frons above). Similar "Length-to-Beane' ratios would be established for multi-hull vessels
and, depending on the difference in the ratios, the multi-hull vessel is charged a '`premium" above
the "base` �UIuest/transient mooring lee. For example purposes only, if the "typical" mono-hull
"Length-to-Beam'' ratio is 3:1 (30 foot length: 10 foot beam), and the "typical" Illllltl-111.111 " IC11gth-
to-beam ratio is 2:1 (30 foot length: 15 foot beam) the multi-Ilull is charged the "base" fee of.$1.50
per linear foot. plus a $0.75 per linear foot ($1.50 x 0.50) "prenliunl" as the beam of the "multi-
111111 Vessel is 50-percent wider [(3 — 2) -:- 2] compared to the otherwise similar mono-hull. Since
this Is based oil a "ratio" rather than the vessel length, the Patios Could be applied to all size Vessels.
The market data suggests that multi-11u11 vessels that occupy guest/transient moorings are charged
a pl'C1111LIn1' Ill a limited number oi'mooring fields — Belmont Mooring (Rental 3) requires a multi-
hull OCCL11W t\VO mooring (effectively a 100% prerniUrn) dile to the moorings being a single-polllt
nlOorinu. and Morro Bay (Rental 5) charges a fixed "large vessel" lee ($177/day). There is also
evidence that some harbors charge a multi-111,111 "prenliunl" for guest/transient slips between $0.25
16
11-36
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NET7ER & ASSOCIATES
and $1.00 per linear foot (approximately 14.25- and 50 -percent) recognizing that a multi -hull
vessel occupies more tidelands relative to a similar length mono -hull vessel.
Lased on the limited data uncovered.. I have concluded that a multi -hull -Llest/transient moorin`.?
lee '`premium" of between $0.25 and $0.50 per Linear foot of. vessel length. depending on the
beam of the multi -hull vessel, which is between 20 -percent and 40-perent of the Base
(ILICSt/transient mooring fee, is reflective of the Pair Market Rent `'Premium". as of Novernber 27.
2017.
Analysis — GUCst/Transient Mooring — Lame Vessel
\Vith respect to the "Large Vessel" fee, the first step Is to attempt to define what constitutes a
1,argc Vesscl". On the basis of the market research completed and the market data presented. the
"CnCral Consensus is that a 100 -feet Is the Cutoff that defines a "large vessel". This section assumes
that a "lar0e vessel" Is a 1111111111um of 100 linear feet and the conclusion Set forth in this section
apply to vessels 100 -feet or longer.
As set forth in the tables above. guest/transient mooring fees for vessels that are 100+ linear feet
Lit Catalina Island range from $1.45 to $1.52 per linear foot, and reflect the highest daily, rate per
linear foot of -'all the transient moorings at Catalina. At the mooring fields administered by the City
of Avalon. the dally rate for a 100+ foot vessel is between $0.10 and $0.38 per linear foot higher
cornparcd to similar "standard length" guest/transient moorings. A generally similar "pre1111Urn"
($0.12 to $0.27 per linear I-oot) is reflected in the rates at the mooring Melds managed by the
Catalina Island Company.
The City of Morro Bay (Rental 5) has a daily fee of $177 for "large vessels" or those that "require
special accommodation". They do not define a "large vessel". but report that a '`large vessel"
flcnerally measures 100 -plus feet. Assuring a minimum vessel length of 100-1'eet, the large vessel
Ice is $1.77 per linear foot. This compares with a rate of $0.28 per linear foot for a west/transient
mooring that accommodates a "standard length" vessel, or a "pre111111111"" of $ 1 .49 per linear foot.
It \vas Voted that a portion ofthis fee 1S attributable to an "inconveruLnee fee" as the large vessels
have to be moored '"end-to-end" in the middle of the anchorage due to the layout of the anchorage
and accornmodatino this size vessel oenerally requires moving other vessels.
Rainbow Harbor In Long Beach is administered by the City of Long Beach Marine Bureau. As
noted in the prior section they do not have moorings; however. they do have guest/transient docks
and end -lies. The base guest/transient fee for a "standard length vessel is $1.25 per linear up to
Q04eet. The fee for an end -tie that will accommodate a vessel that is over 90 linear feet is reported
to be $315.00 per day. or $3.50 per linear foot.
17
11-37
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER S ASSOCIATES
The limited market data to quantify the "large vessel" transient mooring fec is summarized 111 the
following table. For comparison purposes, the "standard" mooring fee per linear foot is included
in the SUllllllary table.
LARGE VESSEL (100+ FEET) - GUEST/TRANSIENT MOORING FEE SUMMARY
OCTOBER/NOVEMBER 2017
Location
TV ie
Length
(LF)
Total
Daily Rate
D.01), Rate
S/LF
Standard Vessel
Daily Rate S/LF
\valor
M00611g100+
$149
SI. 19
$ I . I I - $1.39
Isthmus
Moorin"
Mooring
100+
100+
S14-5
$152
S 1.45
$1.52
S 1 20 - S 1.32
$1.25 - S 1.35
Nv1orro Bav
Moorin<
100+
$177
$1.77
$0?8
Lona Beach Rainbow Harbor
slip/end-Tie
90+
$315
$3.50
$1.25
The three data items that are most comparable to the subject are Avalon and the Isthmus at Catalina
Island and N/lorro Bay, as they reflect the daily cost for a mooring as opposed to a slip or all end -
tic. These three data items reflect a "Large Vessel" daily guest/transient mooring fee that equates
to $1.19 to $1.77 per lineal foot. On the basis of the market data presented above. I have concluded
that the "Large Vessel" (100+ LF) guest/transient off -shore mooring fee. over City nlanaoed
tidelands throughout Newport Harbor, has a Fair Market Rental. as of November 27, 2017, of:
$1.55 per (vessel) linear foot, adjusted annually by the change in the CPI.
Analvsis — Fair Market "Booking Fees'
This section of the report is to determine the "standard practice" for "booking fees" associated
with the administrative costs of frequent renewals. The only, source Uncovered that reports
chargino a "booking fee" or administrative fee associated with guest/transient moorings is the
Catalina Island Company, which charges a $25.00 booking Ice oil weekends. No other marina.
harbor or mooring field was uncovered that charges a lee for bookings or the administration
associated with frequent renewals; therefore. I have concluded there is no "Standard Practice"
beyond the City's "cost recovery" basis.
VALUATION
Based upon the N-vork undertaken. and illy experience as a real estate analyst and appraiser, l have
formed the opinion, as of the 271' day of November 2017, subject to the Assumptions and Limiting
Conditions contained in this report, that the guest/transient moorings in Newport Harbor have the
following Fair Market Rental values:
Daily Fair Market Rent for the Off -Shore Guest/Transient i\/1001 -111"S ("Sub -Permits")
S1.25 per Linear Foot of Vessel, adjusted annually based on the change in the CPI.
11-38
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
Dailv I -air Market Rent for the On -Shore Guest/Transient Moorings ("Sub -Permits")
1"0.625 per Linear Foot of Vessel, adjusted annually bused on the change in the CPI.
Daily Fair Market Rent Tremlum" for Multi -Dull Vessels on Guest/Transient Moorings
Between $0.25 per Linear Foot of Vessel and $0.50 per Linear Foot of Vessel, depending
on the beam of the multi -hull vessel, which is between 20- and 40 -Percent of the Base
guest/transient mooring fee, adjusted annually based on the change in the CPI.
Daily Fair `Market Rent for "Large Vessel" (100+ LF) Off -Shore Guest/Transient Nloorina
51.55 per Linear Foot of Vessel, adjusted annually based on the change in the CPI.
"Standard Practice" associated Nvith Fair Market "Booking Fee" for Guest/Transient Moorings
I have concluded there is no "Standard practice" beyond the City's "cost recovery" basis
19
11-39
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER & ASSOCIATES
ADDENDA
?0
11-40
Newport Harbor Guest Moorings
Newport Beach, California November 30, 2017 NETZER S ASSOCIATES
Qualifications
7]
11-41
QUALIFICATIONS
of
James B. Netzer, MAI
Professional Background
Prior to forming Netzer & Associates, he was associated for over three years with Urban Pacific
Services Corp. Actively engaged as a real estate analyst, appraiser and consultant since 1987.
Principal of the appraisal and consulting firm of Netzer & Associates with offices at:
170 E. Seventeenth Street, Suite 206
Costa Mesa, California 92627
Educational Activities
Bachelor of Arts in Liberal Studies with a Concentration in Economics, California State University,
Long Beach, 1986.
Has successfully completed the following courses sponsored by the American Institute of Real Estate
Appraisers and the Appraisal Institute:
A.I.R.E.A Course IA -1: Principles of Real Estate Appraisal
A.I.R.E.A Course lA-2: Basic Valuation Procedures
A.I.R.E.A Course 1B -A: Capitalization Theory and Techniques, Part A
A.I.R.E.A Course 1B -B: Capitalization Theory and Techniques, Part B
A.I.R.E.A Course SPP: Standards of Professional Practice
A.I. Course 2-1: Case Studies in Real Estate Valuation
A.I. Course 540: Report Writing and Valuation Analysis
A.I. Course 550: Advanced Applications
Has successfully completed numerous classes and seminars to meet the continuing education
requirements of Appraisal Institute, Office of Real Estate Appraisers and Department of Real Estate.
Professional Affiliations & State Licenses
Member of the Appraisal Institute - MAI Designation
State of California - Certified General Real Estate Appraiser - Certificate No. AG003143
State of California - Real Estate Broker License - License No. 01185682
Court Qualification
Qualified as an expert witness in the Superior Courts of Orange, Los Angeles and San Diego
Counties, U.S. Bankruptcy Court — Los Angeles Division.
Teaching Experience
Orange Coast College - Adjunct Professor (retired) - Business 140 "Real Estate Appraisal Principles"
11-42
Seminar & Panel Presentations
Los Angeles County Bar Association — Real Property Division: Overholt.-er Overhauled, An Update
on Damages, Appraisals and Interim Loss under Title Insurance Policies, September 2013
Scope of Experience
During the period in which Mr. Netzer has been engaged as a real estate appraiser and analyst, lie has
been involved in most aspects of the field having completed assignments for multiple purposes,
including: estate planning; bankruptcy; conflict-of-interest analysis (Political Reform Act of 1971),
construction defects litigation; soil subsidence; dissolution of marria-e; .:round lease re -valuation;
leasehold & sub -leasehold valuation; property tax appeals; lease and ground lease arbitration:
easement/access/encroaclinient/title disputes (based on OverhollZer v. Nurlhern Counties Title); soils
contamination litigation; mortgage lending; construction financing; portfolio valuation; market and
feasibility analysis; fractional interest valuation; and, due diligence.
He has experience appraising the following property types:
Vacant Land
Residential lots, sub -division sites, condominium sites, commercial and industrial sites, mountainous
acreage, raw acreage, mitigation land (Delhi Sands Plower Loving Fly, Stephens Kangaroo Rat &
Open Space).
iZesldentlal
Single-family residences, condominiums, townhornes, planned unit developments. multi -family
units, apartment buildings, mobile home parks, proposed and existing sub -divisions.
Commercial
O111ce buildings, medical office buildings, restaurant buildings, retail centers, neighborhood shopping
centers. C0111111LI111ty centers, commerce centers, congregate care facilities, parking structures, golf
courses, mixed-use developments, auto dealerships, gas stations.
Industrial
MaIlllfacturing and warehouse buildings, distribution facilities. multi -tenant buildings, mini -storage
facilities.
Special Use
Cominercial and residential tidelands, boat harbors. auto ferry, bait barge, marina, gas docks, mooring
fields, commercial piers, civic center, fire stations, police stations, emergency conlniunication
17'acilities. temporary construction easements, steel fabricating plant, car wash facilities.
Pnhlir Qr rvirP
Ne\vport Aquatic Center, Newport Beach - Board of Directors - Chairman, Facilities Committee
11-43
PARTIAL LIST OF CLIENTS
ATTORNEYS. I,AW FIRMS & ACCOUNTANTS
Barton Klugnlan & Oetting
Boss Law Firm APLC
Browne & Woods LLP
Bryan Cave LLP
Burd & Naylor
Davis Law APC
Gibson, Dunn & Crutcher
Goldstein & Ward
Greines, Martin. Stein & Richland LLC
Harbin & McCarron
Hart, 11,ing & Coldren
.leffer, Mangels, Butler & Marmaro LLP
Landels, Ripley & Diamond
Larsen & Associates
Latham & Watkins
Leech & Associates
Law Offices of Michael Leight
Loeb & Loeb, LLC
LENDING INSTITUTIONS
Bank Midwest, N.A.
Bank of America
Bankers Mutual (Berkshire Mortgage)
California Federal Bank
Citicorp Real Estate, Inc.
Credit Suisse
Comerica Bank
Escondido National Bank
GOVERNMENTAL AGENCIES
City of Costa Mesa
City of Glendora
City of Huntington Beach
City of Long Beach — Tidelands CID
City ol'Newport Beach
GENERAL CLIENTS
AMRESCO Management, Inc.
Arnold Construction
The Boy's Republic
Capital Guardian Trust
Chicago Title Company
Continental Mobile Housing
Decron rvlanagement
Environmental Nature Center
Fidelity National Title
First American Title Insurance
Hamilton Conlpa11\'
I-leritage Point Senior Living
Hornblower Cruises
Kinder Morgan Energy Partners
Lce & Associates
Lynberg & Watkins
Manning & Kass, Ellrod, Ramirez_, Trester
McDermott, Will & Enlory
Law Offices of Erik B. Michelsen
Millar, Hodges & Benlis
Palmieri, Tyler, Wiener, Wilhelm & Waldron
Richard Shaffer (Court Appointed Receiver)
Rubin & Eagan
Samuels, Green & Steel, LLP
Severson & Werson
Shulman BUI111 LLP
Songstad, Randall, Coffee & FItlmphrey
Stradling, Yocca, Carlson & Rauth
Turner & Reynolds
Richard Wildman. Attorney at Lary
Wolf & Richards
Wright Ford Browning & Young
Wynne, Spiegel & Itkin
GE Capital Investment Advisors
Hawthorne Savings
Huntington National Bank
Merrill Lynch Credit Corporation
Park View Mortgage
Strategic Mortgage Services
Tokai Bank
Wells Fargo Bank
Federal Deposit Insurance Corporation (FDIC)
Orange County — Dana Point Harbor
Resolution Trust Corporation (RTC)
Securities & Exchange Commission (SEC)
Newport Sports Collection Foundation
North American Title Insurance Company\
O.C. Interfaith Shelter
Old Republic Title
Pulte Home Corporation
S & A Properties
S & S Consh•uction/Shappell Industries
St. Clair Company LLC
Santa Fe Pacific Pipeline Partners, L.P.
Simplex Realty
Staples. Inc.
State Farm 111SUrance
Stewart Title Guaranty Company
Texaco Refining & Marketing, Inc.
Westcor Land ,ritfe Insurance Company
Western National Properties
11-44
NETZER & ASSOCIATES
Ileal Estate Appraisal & Consulting
March 26, 2018
Addendum to File No. 2017-030
Lauren Wooding xWhitlinger
Real Property Administrator
City of'Ncwport Beach, Community Development Department
100 Civic Center Drive
Newport Beach, CA 92660
Re: Appraisal Services
Fair Market Rent
Marina Park - Guest/Transient Slips
Dear Ms. Wooding Whitlinger:
In accordance with your request and authorization, I have completed the research and analysis to
estimate the Current Fair Market Rent for the following use of City Tidelands:
1) Daily rate of Guest Slips at Marina Park and approximately 250 -foot dock;
2) Monthly Dinghy Storage Space rent at Marina Park; and,
3) Daily "Guest Mooring Rate" for mooring on private (Non -City owned) tackle.
This letter is an Addendum to my Appraisal Report dated November 30, 2017 that is identified as
Netzer & Associates File No. 2017-030. My November 30, 2017 report should be read in
Conjunction with this Addenda and the definitions, Assumptions and Limiting Conditions and
property identification set forth in my November 30, 2017 Appraisal Report are not included in
this Addenda but are specifically incorporated into, and applicable to, this Addenda. The Addenda
contains a total of 14 pages and has been prepared in accordance with the Uniform Standards of
Prolessional Appraisal Practice (USPAP) and is subject to the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute. This is an Addenda to an
Appraisal Report as described in USPAP Standards Rule 2-2.
This Addenda to my Appraisal Report was requested by Lauren Wooding Whitlinger, on behalf
of the City of Newport Beach, who is the client and intended user of this Addenda to my Appraisal
Report dated November 30, 2017. In the event that this matter proceeds to trial or other
governmental or administrative hearing, the Trier -of -Fact will become an intended user.
Date of Value
1\ v research and analysis was completed on March 26, 2018, which is the date of value presented
in this Addenda.
Guest Slips at Marina Park — Fair Market Rent
The City ofNewport offers slips at Marina Park for "guest" or "transient" use on a "per day" basis.
with a maximum stay of 30 -days. The guest/transient slips are 40 -feet and 55 -feet, with an
additional dock that provides approximately 250 -feet of side -ties. Guest amenities include
portable pump -out facilities, laundry facilities, restroom and shower facilities, potable water.
electrical service (30 & 50 amps), free Wi-Fi and access to Marina Park's beach, playground,
picnic areas and parking lot. The current fees are based on the slip length and are $60 per day
170 E. Seventeenth Strcet. Suitc 206 ♦ Costa Mesa. CA 92637 ♦ Phone (949) 631-6799 ♦ FAX (949) 631-4631
11-45
Lauren \\/ooding \k'hitlinger
i\ilarch 26. 2018
I'aoc
(1:00 p.m. to 11:00 a.m.) for a 40 -foot slip and $82.50 per day for 55 -foot slip, with a $1.50 per
loot "overhang)" charge. In N'larch 2018 1 conducted a survey of several public and private marinas
From San Dic,0,o to Flalf Moon Bay, the table below and on the following pages is a summary of
my guest slip rent survey.
GUEST/TRANSIENT SLIP RENT SURVEY SUMMARY
MARCH 2018
Data No.
Slip Sire
She Rent S/Ni
Iht
Slips
Name (Municipal/Private)
Range
$/Linear Foot
$/Slip
Total #
Maximum
Location
(Linear Feet)
(vessel length)
(fixed fee)
Guest #
Stay
Marina Part: (M)
40'
--
S60.00
23
1600 N1. Balboa Boulevard
j_5'
--
S82.50
23
30 days
New ort Beach
Overhang
SI.50
--
+Side Tie
I/
Bayshore Marina (P)
20' - 83'
$5.00
--
134
5 day
2572 Bayshore Drive
Slips, end -ties
None,
minimum
Newport Beach
& side -ties
vacant slips
I -A/
Villa Cove Marina (P)
20' - 66'
$5.00
--
40
5 day
1099 13ayside Drivee
Slips, end -ties
None,
n11nlmLlm
Newport Beach
& side -ties
vacant slips
1-13/
i
Bayside Marina (P)
20' - 74'
$5.00
--
101
5 day
1 137 Bayside Drive
Slips & end-
None,
minimum
Newport Beach
ties
vacant slips
1-C/
Balboa Marina (P)
20' - 100'
$5.00
--
105
5 day
201 1-7. Coast 1-lighway
Slips & end-
None,
minimum
Newport Beach
ties
vacant slips
�1
Harbor Patrol (M)
40'
$1.00
--
3
N. A.
1901 Bayside Drive
Slips
3
Newport Beach
American Legion (P)
Up to 81'
$1.00
--
48
3 days
215 15'x' Street
Side -tie
None
Newport Beach
4/
Newport Dunes (P)
Under 31'
--
565.00
450
3 days
101 N Bayside Drive
32' - 37'
--
$75.00
4+ vacant
Newport Beach
38'& over
--
$85.00
slips
Slips
51
Lido Yacht Anchorage (P)
15' - 135'
$5.00
--
251
30 days
151 Shipyard Way
Slips
None,
Newport Beach
vacant slips
11-46
Lauren blooding Whitlinger
March 26. 2018
Page 3
GUEST/TRANSIENT SLIP RENT SURVEY SUMMARY (cont.)
MARCH 2018
Data No.
Slip Size
Slip Rent
$/Ni 7ht
Slips
Name (Municipal/Private)
Range
Total #
Maximum
$/Linear Foot
$/Slip
Location
(Linear Feet)
(vessel len 2L)
(fixed fee)
Guest #
Stay
6/
I'etcr's Landing (11)
31' - 96'
$1.00
-
325
N.A.
16400 Pacilic Coast Hwy.
Slips
None. vacant
Iluntincton l3cach
slips
7/
Sunset Aquatic Park (P)
20' - 60'
$1.00
N.Av.
No
2901-A Gdinuer Avenue
Slips
None, vacant
maxinulnl
Huntill"ton Beach
slips
8/
Dana Point Marina (P)
25' - 75'
Under 45' $1.10
--
+1,200
30 days
34555 Casitas Place
Slips & end-
Over 45' $1.20
44
Dana Point
ties
Oceanside Harbor (M)
20' - 50'
$1.20 (Apr.-
--
+950
30 days
1540 1-Iarbor Dr. North
Slips & side-
Sept.)
--
24+ side
Oceanside
ties
$0.80 (Oct.-
ties
M ay)
10/
Harbor Island West (P)
25' - 100'
Over 50' $1.50
Up to 32' $35
600
N.A.
2040 I-larbor Island Drive
Slips
33'-38' $45
None, vacant
San Die,—,o
39'-43' $60
slips
Il/
Port 01'S,111 DIc-0 (h/1)
Up t0 65'
$1.00
--
30
15 days in
1401 Shelter Island Drive
Slips
25
40 day
San Die,—,o
period
I2/
Alamitos Bay (M)
Up to 100'
$1.25
--
1,624
15 days
204 N. Marina Drive
End -tie
None, end-
per month
Lone Beach
ties
12-A/
Shoreline Marina (M)
30' - 60'
$1.25
--
1.764
15 days
450 E. Shoreline Drive
Slips
$3.00 during
None, vacant
per 111011th
Lona Beach
special events
slips
12-8/
Rainbow Harbor (M)
30' - 180'
$1.25
--
87
15 days
300-B Aquarium Way
$6.00 during
None, vacant
per month
Lone Beach
90' K over
special events
$370
slips
Slips
13/
l3u11011 Chace Park (M)
8' - 50'
$1.25
--
45 -t- side
7 days per
13650 Mindanao Way
Slips S-, Side
tics
30 days
Marina del Rev
ties
All
11-47
Lauren VA/ooding Whitlinger
March 26. 2018
Nope 4
GUEST/TRANSIENT SLIP RENT SURVEY SUMMARY (cont.)
MARCH 2018
Data No.
Slip Size
I She Rent S/Night
Slips
Name (Municipal/Private)
Range
$/Linear root S/Slip
Total #
Maximum
Location
(Lineal Feet)
(vessel len =th) (fixed tee)
Guest #
Stay
14/
Kine Harbor Marina (P)
20 '- 80'
--
Under 28' $20
No longer
2 months
208 Yacht Club Way
Slips
28'-3S $30
offer guest
Redondo Beach
36-44' $40
slips
44+$50
15/
Channel Island (N1)
25'+
$1.35
--
34
N.A.
132-A Harbor Wad-
Slips
34
Oxnard
16/
Ventura West Marina (P)
20'-80'
$1.50
--
554
No, ollcrs
1 198 NaviOator Road
Slips
None, vacant
monthly
Ventura
slips
rate for 2
week stay
17/
Santa Barbara (M)
20'- 100'
Days 1-14 a
--
1,143
14 days,
132-A Harbor Way
Slips & side
$1.00
--
None. vacant
28 w/HM
Santa Barbara
ties
Days 15-28 @
slips
permission
$2.00
18/
Monterey Marina (M)
20'- 50'
--
Summer/Winter
413
N.A.
Figueroa Street
Side -ties Nv/
20' $14/$13
None, side -
Monterey
no utilities
25'
ties @ K Tier
--
$17.50/$16.25
30' $21 /$1950
35'
$2450/$22.75
40' $28/$26
19/
Santa Cruz Harbor (M)
24'-60'
$1.25 mono
--
+1,200
2 weeks,
135 W. 5"' Street
Slips & end-
$35.00 min.
None, vacant
extensions
Santa Cruz
ties
$1.50 multi
--
slips & end-
w/ 1-1M
$45.00 min.
ties
approval
20/
Pillar Point (M)
30'-65'
$0.77
--
154
N.A.
I Johnson Pier
Slips & end-
Multi -hull r),
--
Recreational
Half Moon Bay
tics
150%
None, vacant
slips
Discussion and Analvsis
The survey data includes both municipal and private marinas between San Diego and Half Moon
Bay. 'File guest/transitory slips are rented on a daily basis either based on a price per linear foot
of the greater ol'thc vessel or the slip length, or on a "fixed" basis based on the slip size that will
accommodate a ranee in vessel lengths. In general. they all provide electric service, potable water.
11-48
Lauren Wooding Whitlinger
March 26, 2018
Page 5
restroom and shower facilities. Some of the marinas have a "dedicated" number of guest slips.
awhile it is more prevalent that they offer their vacant slips to guests. Most have a rnaxinlllnl terns
that the guest is permitted to stay. or charge a higher fee for a stay in excess of the maximum. when
approved and permitted by the i-larbornlaster.
In general, the guest/transitory slip I-ees are similar between municipal and private operators as
blew ol'l-er ��enerally similar services and amenities and are colllpeting for the Same market SCg171Cl1t.
ill some harbor's. the private inarina operators do not have "dedicated' guest slips and they offer
.illps Oil a tl'allsltory basis only when the\, have vacant slips and they chal'`.'_C a prClllll1111 as this IS
more of all accorriniodatloll as opposed to it full time service. In some harbors (Channel Islands
'IS all CXalllplc�. the opposite Is true as the municipal guest slips (Rental 1 5) are offered at a slightly
Iiii-dier fate ($1.35/1_1') as compared to siniiIar private marinas (Bahla Marina & PellinSLllil Yaeht
Marina. not included in survey) that charge $1.00 per linear foot. On the basis of the market data
uncovered, it would appear that \with a l-ew exceptions the municipal and private marinas charge
<ouest/transient slip fees that are judged to reflect "market rent".
Comparable One through One -C are located in Newport Harbor and are private marinas that are
owned and operated by California Recreation Company (a division of The Irvine Company). Tiley
offer electrical service (20-. 30- & 50 -amps), pump outs (Balboa & Bayside), restroonls, telephone
& cable hookups, free parking, dock boxes and the concrete piers and docks are modern and in
(lood condition. Overall they reflect a similar level of amenities as Marina Park and are proximate
to upland services. They do not have any dedicated guest slips but will rent a vacant slip on a
transitory basis with a five day minimum at a reported rate of., $5.00 per linear foot. Tile four
California Recreation marinas cater to long -terns tenants and are currently experiencing a
combined occupancy in excess o1 -97 -percent (6 slips, 4 side -ties & 1 end -tie) as of the date of this
SUrVCV. Currently, they charge a significant pl'CllllLllll fol' "LICSt/transient slips more ifs all
accollllllodalloll and the fate reflects that they are not set LIP to adinin1ster guest/translent slip
rentals.
Comparable Two reflects the County i-Iarbor Patrol dock, which has three dedicated guest slips.
The slips will accommodate vessels up to 404eet and the slips rent for $40.00 per night, regardless
of the vessel size. The maximum stay is 30 days and from November thru April guests must sleep
on the vessel. The overall facilities provided (pump -out, electric. water, shower & restroonls) are
slightly inferior to Marina Pari: and the proximity relative to upland services is judged to be
inferior.
Comparable Tlu•ee is a side -tie that can accommodate a vessel up to 8l -Peet. Itis located adjacent
to Marina Park at the r\nlerican Legion Marina. which has a total of 43 -slips. There are no
dedicated slips. the guest must be a member of the American Legion and the maximum stay is
limited to three days. They provide restroonls, water, showers, electricity and parking with
generally similar access to upland services. Overall this comparable is judged to be inferior to the
subject. It should be noted that they charge $50.00 per month for storage on the dinghy rack, with
Ll nlax1111LIIl1 lend th of94eet.
Comparable Four is the privately owned Newport Dunes. which is located in the Upper Newport
Bav ( Back Bav) behind the Coast Fligll\vay Bride -e. The 450 -space marina has four dedicated
guest slips and they offer vacant slips on a transient basis \with a 30 -day advance notice. Tile daily
11-49
Lauren Wooding Whitlinger
March 26. 2018
Page 6
rate is based on the slip size and arc rented on a fixed basis regardless of the vessel length as lone
as the slip will accommodate the vessel (a 32'-37' slip will accommodate a similar length vessel).
When looked at on a rent per linear foot. the fixed rates equate to $2.10 per foot ($65.00 -:- 3l')
$2.03 per loot ($75 -:- 37') and $2.24 (and less) per Foot ($85.00 -:- 38'). respectively. They offer
a slightly Superior alllclllty packape (electricity, restroonis. sho\vers. pLlillp-Out. laundry. parkin`,.
pool..lacuzzi. clubhouse with kitchen) Nvith slightly inferior access tO upland services. They have
dinghy racks that rcpt for $25.00 per month and stand -Lip paddlcboard racks (SUP) that rent for
$35.00 per month.
Comparable Five is the Lido Yacht Anchorage, which is privately owned. The 251 slip marina
does not have anv dedicated guest slips and offers vacant slips to guests at a rate of $5.00 per linear
loot. The IllaNil11L1111 stay Is based oil the amount oftirne the slip is vacant. They provide a similar
amenity package and are proximate to upland services. Like California Recreation, this private
Illarllla is experiencing high occupancy and reportedly do not actively offer guest/transitory slips,
rather they Offer theas all accommodation and charge a prC1111u111.
Compal -able Six is located in Huntington Harbor and is privately owned. Huntington Harbor Is
behind the Coast Highway Bridge, which limits the height of vessels that can access the harbor.
especially sailboats that generally have to lower their mast. -Tile 325 slip Peter's Landing marina
does not have dedicated guest slips and offers their vacant slips to guests. It was reported that they
generally have 10 slips available for guest use, with a reservation. The rental rate is $1.00 per
Ilncar 100t \with a In i Ili Illuill Rightly charge of$3 0.00. They of�ler a similar amenity packa(,e (punlp-
Out, 30- & 50-arnp electric, restroom, showers, laundry & parking) and the marina is proxiinate to
upland services. There Is no established max1111L1111 stay and no Municipal guest slips/moorings.
Comparable Seven is the privately owned Sunset Aquatic Park marina that is behind the Coast
I-ligllway Bridge in Huntington Harbor. There are no dedicated guest slips and the vacant slips are
offered to guests at a rate of $1.00 per linear foot. with a $25.00 per night minimum. The amenity
packape (laundry, restroonls. showers. 30- and 50 -amp electric, pump -out, park) is relatively
similar to the subject: however. it is somewhat removed from upland services. It was noted that
most ` OLlestslips are rented by people that store their vessels in their dry -storage facility and want
to leave it in the water for more than one day.
Comparable bight is the privately owned Dana Point Marina with approximately 1.200 slips that
includes 44 dedicated guest slips. The slip rates per linear foot are $1.10 for vessels under 454eet
in length and $1.20 for vessels over 454eet. There is a 30 day maximum term during the season
with a 90 -day term permitted in the offseason. Reservations are accepted up to 180 -days in
advance. "Mere is a siillllar amenity package that includes. water and electrical service, restroollls.
showers. coin -op laundry. and pump -out facility and the marina is proximate to upland services.
There are no municipal guest slips in Dana Point Harbor.
Comparable Nine refers to the guest slips in Oceanside Harbor that is operated by the city of
Oceanside. They have a total of950 slips and 24 are dedicated guest slips plus side -ties. The rate
is $1.20 per linear foot (vessel) from April through September and $0.80 per linear foot from
October through May. Thev have limited space on dinghy racks that rent for $5.00 per month for
slip permittees and $78 for 6 -months for non -permittees. The\, have a slightly inferior to similar
alllclllty packaue (electricity. water. pLllllp-OLIt, laundry. showers S`', restroorns) and thev are
11-50
Lauren WOOdlll�(l Whitlinger
March 26, 2018
Page 7
sonic\\ -hat isolated fi-Onl upland services
Comparable Ten is located in San Diego Harbor and is a privately owned 600 slip marina. -["here
are no dedicated guest slips but the vacant slips are ol�fered to guests. The fee for slips Up to 32 -
feet is a flat $35 ($1.09/LF), $45 for slips between 33- and 384ect ($1.18/LF) and $60 for slips
between 39- and 42 -feet ($1.40/LF) and $1.50 per linear foot for vessels 50-1'eet and over. With
ilio exception of'holiday weekends (Memorial Day, Labor Day & 4`l' O['.lUIy) the maximum stay is
based on the time that a slip is vacant. The amenity package includes pool, spa, sauna, restroom.
sho\vcrs. laundry I1cillties. plllllp-OLlt. parking and Wi-Fi. which are Silllllar t0 the subject. File
location is similar in terms ol' aCCCSS to upland services. The owner of' this lllarina owns other
marinas In ',.in Dicuo, Dana Point (110 guest slips) and Ventura.
Comparable Lleven IS the guest clock that is operated by the Sall Dicuo Port District. Thev have
30 slips at the Port Police Station and 25 are reserved for guests. The slips are rented for $1.00
per linear foot of vessel for a maximum 01' 15 -days in a 40 -day period. "File slips will accommodate
vessels up to 65 -feet and those over 654eet can moor in one of' the Port's anchorages. "They offer
30-anlp power, potable \,nater, restroonls and sho\\ers and they are located in close proximity to
upland services.
Comparable Twelve, Twelve -A and Twelve -B are located in Alamitos Bay and Longo Beach
Ilarbor and are operated by the City of L011g Beach. "rhe city offers vacant slips to guests as they
do not have dedicated guest slips. The slips all have a nlaxinuull term of l5 days and are rented
for $1.25 per linear foot \pith the exception Of the slips over 90 -feet that are in Rainbow Harbor
that are rented on a fixed fee basis of $370 per night (maxima n of $4.11/LF). It was reported that
the rates for guest slips in Shoreline IV[arina are increased to $3.00 per linear foot during special
events (Lone Beach Grand Prix. etc... ) and slips in Rainbow Harbor are increased to $6.00 per
linear foot during these events. All three marinas have locations that are proximate to upland
services. Alamitos Bay iS Underooill`' all approximately $150-rnillioll renovation inclUdino the
replaccillelltS of. docks. piers. Slips and the (Marina Inf'rastRICtUre. The amenity package at each
Illarina iIlCILIdeS parking, pUlllp-OUtS, restroorns, and showers and are slightly inferior to Marina
Park.
Comparable Thirteen is the guest dock that is located in Marina del Rey and is operated by the
County. 'there are 45 slips and additional side ties that rent for $1.25 per linear foot with a
IllaxllllUrn 7 -day stay during any 30 -days. They Oftel' 30-arnp po\wet, potable water. restroonls and
showers at a municipal park (BUrtoll Chace Palk) and upland services are available throughout
Marina del Rev. -]-his comparable represents the only municipal OLICSt Slips in Manna del I\ey and
lllost of the private marinas cater t0 1011P -M-111 Occupants.
Comparable Fourteen is provided for informational purposes only as the marina reported they
recently discontinued offering guest slips due to the demand For long-term occupancy.
Comparable Fifteen refers to the 34 guest slips in Channel Islands Harbor that are offered by
Ventura COMM'. The Slips are rented lOr a IllaxinlUrn ole i 0 -days at a rate of $1.35 per linear loot.
With [ larbormaster aj)j)I'Ova1 (SUbject to insurance rcgUIrCl11CiltS) tI1Cy \VIII Cxtend the terns beyond
10 -days at a fate of. $1.60 per linear loot. It was reported that the lees were recently increased
Froin $1.30/$1.50 per linear foot and the web -site has not been updated. The Municipal rates
11-51
Lalli -CII Woodlllg Whitlingcr
March 26. 2018
Paoc 8
compare with two private marinas in Channel Islands Harbor that offer guest slips at $1.00 per
lineal- fOOt. per night. The overall amenity package and access to upland services is judged to be
slightly inferior to relatively similar compared to the subject.
Comparable Sixteen is a privately operated inarina in VCI1tUra Harbor that has 554 slips. but none
al -C dedicated `UIuest slips. It was reported they are full but CIO offer vacant slips to guests when they
arc availablc. The guest rate is $1.50 per linear foot for the first two -weeks. For stays over two
weeks they Offer the monthly rate and charge a live -aboard Ice of'$200 for 1 person and 5250 161*
two people. They have ding111' racks that relit for $20.00 per month. file marina and ILIC1111ICS
were remodeled 117 2010 and overall alllenity package Includes electrical service. restroollls (�
sets). laundry. pltnlp-outs. parking. and a guest lounge (T.V., sitting area, bar. kitchenette), wort:
Out room. and is comparable to the subject.
Comparable Seventeen is the Santa Barbara Harbor that is operated by the City of Santa Barbara.
They have 1.143 slips: however. none are dedicated west slips. They offer slips and side -ties
when tile\, are available and the harbor has good access to upland services. "The rental rate is $1.00
per linear foot Ior the first 14 days. With i-larbor111aster authorization, guests call extend lip to 28
days at a rate ol.$2.00 per lineal- loot for days 15 through 28. If a guest leaves for live consecutive
days the "clock starts over' at the lower rate. There is potable water and electric service included
in the rent: however, a card key ($7.00) or FOB key ($12.00) must be purchased to use the restroom
and shower facilities and the vated access to the piers Tor the term of your stay. Commercial
fishing boats are charged $0.75 per linear foot for transitory slips. A published report indicates
the Harbor Commission has approved all Increase to $1.50 per lineal- loot for vessels Over 70-1eet:
however. it has not be Implemented as Ofthe date ol`thls survey.
Comparable Eighteen are the "hest side -ties located in Monterey Harbor, which Is operated by
the Clty. The harbor includes a total O1�413 slips and none are dedicated to guests. The only `Quest
accommodations are the side -ties located oil the K -Tier that accommodate vessels from 20- to 50-
leet. 'there are no utility services. The amenities include restrooms, coin-operated laundry,
showers and are judged to be inferior compared to the subject. The guest fees are higher in the
SUIlliner as compared t0 the whiter and range from $13-SLI111171ciA14-winter for a 2046ot side -tie
to $26/$28 for a 40 -loot side -tie. They charge a quarterly lee of'$72 I -or dinghy rack storage.
Comparable Nineteen is operated by Santa Crl1Z County with approximately 1,200 slips and end -
tics. 'There are no dedicated guest slips and vacant slips are offered on a transitory basis with a
IllaxllllUlll stay of two weeks. The guest rate is $1.25 per linear foot for 1110110 -hulls with a
Illllllllllllll fce ol'$35.00 per night. The rate for a multi -hull vessel is $1.50 per linear foot with a
111 1 11 1 111 11 117 fee of $45.00 per night. The\, offer 20 & 30 -amp power and potable water. "There is a
$ 10.00 Iec for a lacy to access the showers. Depending oil availability, the Harbormaster may
grant an extended term at a rate of- $2.00 linear foot, with a Illlllllllum of' $56.00 per night.
"Transitory commercial vessels are charged $0.75 per linear loot. with a $30.00 minimum. Overall
the amenities and access 10 upland services is Ridged t0 be Illferlor cornparCd to the SUblect.
Comparable Twenty is the Pillar Point Harbor that Is located in Half Moon Bay and operated by
San Mateo Count)'. There are 154 recreational slips and end -ties and none Of them are dedicated
to guest use. When available thcv are offered to guests at a rate ol�$0.77 per lineal foot for nlono-
hulls and the multi -hull fee is the 1110110 -hull rate tinges 150 -percent ($0.77 x 1.50 $1.16 LF).
11-52
Lauren Woodillg Whitlinger
March 26, 2018
Page 9
There is no nlaxinlunl term. ThCV provide restroonls. showers. pump -out and laundry facilities.
'File amenity packaoe and access to upland services are inferior compared to the subject.
The rental data set forth in the table on the previous pages reflects a range frons $0.77 per linear
I'M to $5.00 per lineal' loot for guest. oi' transient. slip rentals. The data that is most applicable to
ivlarnla Part: is located in Newport Harbor and becomes less applicable the less proximate the
location: however. they are supportive of the conclusions presented. in general, all of the marinas
offer a similar amenity package: however. the marinas are all well maintained but are generally
older than. and not as modern as. Marina Palk.
In the Inial analysis. the data from Newport Harbor are given the primary emphasis. These marinas
reflect rates from $1.00 per linear Im (No. 2 Harbor Patrol &e No. 3 American Lcgion) to $5.00
Per linear toot (Nips. 1. 1-A. 1-13 S-, i -C & No. 5). 'file Harbor Patrol (Municipal) and American
Lc -ion (members only) are judged to be less desirable in terms ole physical characteristics and
amenities when compared to Marina Park. The subject has very good access to upland services
including. but not limited to, dining, shopping and marine services in and around McFadden
Square. Lido Village and the Rhine Channel. The Comparable Rentals at the upper end ($5.00/LF)
are privately owned marinas that do not maintain dedicated guest slips and, while generally similar
in terms of amenities and overall physical characteristics. cater to long-term renters and they
..Offel' !UILIcst/transient slips as an accommodation when lllcv have vacancy and charge a slunillcant
premium as the), are 1101 set lip to administer guest/transient slip rentals.
Comparable Dour is the Newport Dunes Marina that charges a '•fixed" fee for their various slips
lengths: however. when analyzed oil a price per linear foot they reflect a range from $2.03 to $2.24
per linear foot. This marina is privately owned, has a similar park -like setting and generally similar
amenities. but is located behind the Coast i-Iighway Bridge. The location behind the Coast
Highway Bridge is not as desirable as Marina Park as most sailboats and many power boats that
have towers are not able to navigate under the Coast Highway Bridge.
Placing most emphasis oil Comparable Rental Foul. I have concluded that the subject guest slips
have a current Mir market rent of $2.00 per linear foot. This figure can be applied to either the
vessel length. which is most applicable to the 250 -feet of side ties and the conclusion of $2.00 per
linear foot. it is also applicable to the slip length when charging based on a fixed slip length and
to the -overhang" fee for vessels that extend beyond the length of a 40- or 55 -foot slip. The total
nightly Fair Market Rent for the Guest Slips at Manila Park on a `'fixed fee" basis. as oil March 26.
2018. then. is calculated as follows:
40 -Foot Slip @ $2.00/1-inear Foot: $80.00/Night
55 -Foot Slip a $2.00/Linear Foot: $1 10.00/Night
Most of the marinas, both private and municipal. have a maximum stay that generally ranges From
3 -days to ')O -days. The municipal marinas all have a mechanism that permits longer stays. with
Harbor Master permission and proof of insurance. One private marina (Dana Point) offers stays
LIP to 90 -days in the "off=season". Depending oil demand. establishing the protocol to permit
longer -terns stays. especially during the "off-season' is recommended.
11-53
LaUrCII Wooding Whitlinger
tMarch 26. 2018
Page 10
lylonthly Din,_,v Stol' we at Marina Park — Fall' Market Relit
The City of Ncwport Beach has IOUr dinghy Packs at Marina Palk and two at the Balboa Yacht
Basin. Each rack at Marina Park can accommodate three dinghies with a total capacity of 12
dinghies. with a total ol'ei`(,Iit at the Balboa Yacht Basun. The monthly tee Is $25.00 and there is
C1.II'1'Cl1tly a \wait list.
The Io11owill`u) Is a SUllllllary 01, the "dr)' dinUll)' StOra`,?C lees LII1CO\'C1'CCI III till' SLIrVCV al'Ca. It
ShOUICI bC IlOtCd. that S0I11C OI the marinas that offer off -shore nloorin-s have dOCks/plCl'S that
permit "dInuhy tics ' (Sall DIC`. -'O Mooring Company & VentUra West N/l£lnna as eXalllples):
1l0WCVCr. tI1CV are not 111ClUded In the SLII'vCV.
Location
Marina Park
�1lonthiv Fee
$25.00
Comment
12 spaces. wait list
Balboa Yacht Basis
$25.00
8 spaces. wait list
American Legion
$50.00
Members only. next to Marina Park
Newport Dunes
$35.00
$35.00
Dinghy Rack
SUP Rack
LIdO ]sic Comm. Assoc.
(Residents only)
$12.50
$18.83
$46.25
Kavak/Sabot Dry Storage (rack)
Sabot Dry Storage (ground)
]4'/I5' Boat Dry Storage (,"round)
Oceanside
$5.00
$13.00
Slip Permittee
$78/6 -months for non -permittee
Monterey
$24.00
Din',Iw rack
Santa Cruz
$55.46
Includes parking, permit
On the basis ofthe rental data uncovered. I have C011CIUded that the Individual spaces in the dinuh)'
Packs at Marina Park and the Balboa Yacht Basis have a Fair Market Rent. as of March 26. 201 S.
01,1$35.00 per month.
Daily "Guest Anc}lora1-'e Rate' ofNon-City owned Tackle
The City of' Newport offers moorill�(Us thr0u011Out the harbor that include City Owned mooring
tackle and are rented either oil a monthly or guest/transitory (daily) basis. The City desires to set
Up a "large vessel area" adfacent t0 the West Anchoragc located between the western tip of Lido
Isle and Lido Villaoe Marina. As reported by the Harbormaster. a "large vessel" is generally
described as being over 804eet. The "Large Vessel Area" will permit the vessel mvner to provide
the privately owned mooring tackle (either single- or double -point) necessary to safely
accommodate their "large vessel". even when the vessel is not occupying the mooring. DLII'lll�1'.
their stay in the Harbor vessels must be anchored fore and alt while in the "Large Vessel Areae.
Darin(-' the Course of my research. two municipalities were identified that lease moorings owned
by the municipality and also lease tidelands in then' respective mooring, fields and permit the use
private mooring tackle - Pillar Point Harbor in [-Tall'Moon Bay and Morro Bay.
Pillar Point is operated by Sall N/latCO COLInty and has all "inner harbor- that Is dedicated t0
recreational and commercial marinas and slips and a protected "outer harbor- that permits
moorings and includes both County owned mooring tackle and private mooring tackle. The
moorings that include COLInty o\vned mooring tackle are rented on a monthly basis at a rate ole
$4.38 per linear foot of vessel. with a nlinimurll monthly fee of $108.00. The moorings that
11-54
LaL11•e11 WOodino Whitlinger
March 26, 2018
Paoe I I
include private mooring tackle are rented on a monthly basis for $1.65 per linear foot of vessel,
with a minimum monthly payment ol7$49.00. In both cases. the mooring fees are due and payable
whether or not the vessel occupies the mooring for the entire month. It Should be noted that the
mite for a "guest" nloorino IS $11.00 per day. Slip fates for recreational vessels at Pillar Point range
li•0111 5).30 to S 10.06 per linear foot. and the rate Ior a guest Slip is $0.77 per linear loot for nlono-
I1LilIS. with 150 -percent charged for multi -hull vessels. It was reported by a representative of the
Harbor Department that they are phasing out the use of private mooring tackle; however. it will
remain transferrable until it is removed.
Morro 1.3ay has 125 moorings located in the harbor and approximately 50 are "privately owned".
meaning that an llldlVldllal owns the I11001'lllg tackle and leases the space from the City. All
moorings are leased on a month-to-Illonth basis. The rnoorinus at Morro Bav are leased On a
"fixed" basis regardless of vessel length and the rate for a City owned mooring is $251.50 per
month. while the rate for a "private mooring" is $87.04 per month. The guest mooring rate is
$0.28 per linear loot. while the guests slip fees are $1.24 per linear foot for City owned slips. The
monthly mooring fees for both public and private moorings are due. regardless if the mooring
occupied by a vessel.
The two municipalities identified above that lease space in mooring fields differ significantly in
the rate per linear Toot that they charge l -or moorings and slips as compared to Newport Beach;
however. the data is instructive in providing a percentage difference between the rates charged for
moorings \vlth City -owned tackle as compared to moorinoos with private tackle. Tile following
table IS a S1.1111 lary of the percentage diSCOUnt associated with the use of private mooring tackle:
Pillar Point
($/Linear Ft.)
Rate Im- Moorinu \with City owned tackle: $4.38
Rate for IVlooring with private tackle: -1.65
Absolute Difference: $2.73
-:- Rate for Mooring with City owned tackle: -:- 4.38
Discount for private mooring, tackle: 62.3%
Morro Bay
(Fixed Rate)
$251.50
- 87.04
$164.46
-:- 251.50
65.49%,
Tlie analvsis reflects a consistent percentage discount (62.3% to 65.4%) for the use of. private
Illooring, tackle as opposed to a similar mooring with tackle owned by the municipality. As noted
above. both Illunicipalities charge for the entire month reGardless of the amount of time that the
vessel occupies the nlooring. In essence. both municipalities recognize that the tidelands under
the nl0orin�( are encumbered whether or not the vessel occupies the mooring.
In addition to the information provided above. 1 interviewed a representative of Pacific TLIU Boat
Service. which is based in Lone Beach. A portion of their business is to provide. tug. barge. SCOW
and associated services along the coast From San Diego to San Francisco. They complete projects
for private entities andgovernmental agencies. Their representative reported the he was not aware
of a municipality that charges them a mooring fee while they are completing a project, and that
most of their project's (dredging, towing. salvage, setting moorings, marine construction. floating
crane service. etc...) benefit the overall harbor community. it was the representative's opinion
that a vessel owner should be charred a monthly fee. regardless of the amount oftime then' vessel
OCCLIi)iCS tile inooring. and that Ile would anticipate they w"OLlld pay less Ilthey use then' own tackle.
11-55
Lauren Woodinu Whitlinuer
March 26. 2018
Pa( -,c 12
It was noted that they generally use their own tackle for nTlulicipal and private projects.
It is recognized that Pacific Tug is a commercial user and the assignment applies specifically to
recreational use of the "large vessel area' adjoining the West Anchorage; however, the same
principals apply as both commercial and recreational vessel moorings encumber the underlVin�-1
tidelands.
Oil the basis of the interviews completed and the data 1-1I1COyCI•Cd. I hayC C011CILIded that the fall'
N/larkct Rent I6r the GLlest/Transient N/1001.111`u, in the. "Lan -'e Vessel Area"
of the \VCst . nchorage.
i.ISlil,L, PI'lyately Owned N/lool inu, Tackle. as of 1V1arch 26. 201 S. IS a 62.5 -percent diSCOLInt 11'0111 the
otherwise comparable GLICSt/ I ranSlCilt Mooring Fee Chai-ed thl'OL101101.1t Newport Harbor for
moorings with City -owned tackle.
On the basis of the survey and analysis set forth in my Appraisal Report. dated November 30.
2017. of which this is an Addenda. the concluded Daily Current Fair Market Rent for Off -Shore
Guest/Transient nlOor111US ("Sub -Permits") in Ncwport Harbor. as of November 27. 2017. is:
$1.25 per linear foot of vessel. adjusted allllLlally based oil the change Ill the CPI. When the
discount of 62.5 -percent is applied to the Daily CLU'rent Fair Market Rent for Oft -Shore
GLICSY I-ansicnt 111001'ill�,?S of $1.25 per linear foot. the indicated Daily Current Fair Market Rent
101. Of I-Shorc GLlest/ I ransient moorings with private tackle is $0.47 per linear foot ($1.25 x (1.0
— 0.625)). per clay. If a different Daily Fee for a vessel on a guest/transient mooring with City -
owned tackle is established. the same 62.5 -percent discount would apply to a vessel using Privately
Owned N/looring Tackle in the "Large Vessel Area" ofthe West Anchorage..
Valuation
Based upon the work undertaken. and illy experience as a real estate analyst and appraiser. l have
Iormcd the opinion. as of the 26`i' day of (March 2018. SLlblect to the AssUrlptlons and Limiting
Conditions contained in Illy original report and this Addendum. that the subject tidelands in
Newport Harbor have the 161lowing Fail' N/larket Rental valUeS:
Daily Fair Market Rent for the Guest Slips at Marina Park. the Greater of
S2.00 Per Linear Foot of Vessel, adjusted annually based on the change in the CPI
or
580.00 per Night for a 40 -Foot Slip, adjusted annually based on the change in the CPI
Sl 10.00 per Night for a 55 -Foot Slip, adjusted annually based on the change in the CPI
Monthly Fair iMarket Rent for the Din4ohN Racks at Cit\ Facilities
$35.00 per Space, per Month, adjusted annually based on the change in the CPI
11-56
LaLII-Cl1 WOoding, Whitlim-yer
March 26. 2018
Page 13
Daily Fair Market Rent for a Guest/Transient Mooring in the "Large Vessel Area" of the West
Anchorage, with Privately Owned Mooring Tackle
Discounted 62.5 -percent from the othmvise comparable Guest/Transient Mooring Fee
charge throughout the Harbor for Moorings with City -owned tackle
Or
511.47 per Linear Foot of Vessel
corti t7lr91inn
l'o the best of my knowled-e and belief. I certily that:
I -lie statements offact contained in this report are trLIC and Correct.
The reported analyses, Opinions. and COIICILISions are limited only by the reported
aSSLII11ptIons and limiting conditions, and are Illy personal. unbiased professional
analyses. Opinions and COIlCIL1S1OI1S.
I have no present or prospective interest in the property that is the subject of this
report. and I have no personal interest or bias with respect to the parties involved.
I have performed no services. as all appraiser or in any other capacity, regarding
the property that is the subject of this report within the three-year period
in-imCdlately preceding acceptance ofthis assignment.
I have no bias with respect to the property that is the subject of this report or to the
parties involved in the assignment.
N/ly engagement in this assignment was not Contingent upon developing or
reporting predetermined results.
N/Iv compensation Is not ContinUICllt Upon the reporting ofa predetermined value Or
direction in value that livors the cause Of' the Client. the arl1Ount ole the value
estimate. the attainment Of a StipUlated result. Or the occurrence Of' a subsequent
event.
The reported analyses. opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Code ole Professional Ethics and
Siandards of Professional Appraisal Practice of the Appraisal Institute, which
include the Unijnrm Sla17Clarcl4 ol'Prgfessional Appraisal Practice.
The use ol' this report is subject to the rcgLlll'CIl1CI1tS ole the Appraisal Institute
relatin`u, to review by Its CILIIy allthOrized repreSClltatlVes.
I have completed a physical inspection of, the property, that IS the Subject of' this
Restricted Appraisal Report.
In accordance with the USPAP Competency Provision. I certify that I have the
knowledge and experience to complete this assignment and have appraised this
Property type before.
Disclosure Of the contents of this Addenda to my Appraisal Report is governed by the Bylaws and
Regulations of the Appraisal InstltUte. In 111rthCraricc ol'the alias Of�the 111StitLltC to develop higher
11-57
Lauren Wooding Whitlinger
March 26, 2018
Pate 14
standards of professional perlormance by Its Members. the appralser may be required to submit
aLlthorizcd committees of Said Institute Copies of this report and any SL1bSCgLlCllt Chanocs or
modifications thereof.
The Appraisal Institute conducts a VolUntary program of" C011tillUing education for its designated
members. MAI's who Illeet the 11 inil11L1111 standards Of this program are awarded periodic
educational certification. As of the date of this rcport. James Q. Neuer has completed the
i'CgLlll'Ci11C111S Milder the COI1til1Ul11`.Z edLICatl011 program Ofthe Appraisal II1StitLitC.
fZcspcctl,ully submitted.
Jai es Q et- er. MAI
Cal fornia Ge oral Al praiser No. AGO(13143
11-58
11-59
B I 1 I L P Q R S T U
1
City of Newport Beach Schedule of Rents, Fines, and Fees (SRFF) -Harbor
2
A B C D E F G H
3
Current Charges Proposed Charges 2018 adj
1 1 Full Cost/Market Value
4
SERVICE NAME Total or Base Fee Total or Base Fee R TYPE Total or Base Incremental - CPI Notes
Fee (if applicable)
S
6
HARBOR
Dinghy Rack Rental Application Fee $0.00 $ 17.00 M.C. 3.36.030
COS -Fee
$17.40
Yes
7
ImpoundFee- Initial
$150.00 $ 68.00 M.C. 3.36.030
COS -Fee
$68.09
Yes
8
Impound Fee - Loose or Lost and Found
see notes $ 46.00 M.C. 3.36.030
COS -Fee
$46.72
Yes
Free first 5 days then
9
Boats/Vessels
$50/day
Inspection Fee - Charter Boats
$0.00 $ 341.00 M.C. 3.36.030
COS -Fee
$341.38
Yes
10
Inspection Fee - Dock, Pilings, Code
$0.00 $ 209.00 M.C. 3.36.030
COS -Fee
$209.47
Yes
11
Enforcement
Inspection Fee - Live Aboards, Marine Activities
$0.00 $ 275.00 M.C. 3.36.030
COS -Fee
$275.42
Yes
12
Permit Re -check
Key Card Replacement
$0.00 $ 23.00 M.C. 3.36.030
COS -Fee
$23.12
Yes
13
Large Boat Permit (80+ Lineal Feet)
$0.00 $ 64.00 M.C. 3.36.030
COS -Fee
$64.12
Yes
14
Lend a Mooring Line/Help to get on a Mooring
$0.00 $ 32.00 M.C. 3.36.030
COS -Fee
$32.36
Yes
5Marina
-L5-
MarinaPark Cancellation Fee
see notes $ 11.00 M.C. 3.36.030
COS -Fee
$11.60
Yes
Cancel 72 hours or more $10
16
fee, less than 72 hours forfeit
Mooring & Slips Rental Application Fee
$0.00 $ 17.00 M.C. 3.36.030
COS -Fee
$17.40
Yes
17
Mooring Extension Permit
$0.00 $ 326.00 M.C. 3.36.030
COS -Fee $326.81
Yes
18
Mooring Inspection
$0.00 $ 68.00 M.C. 3.36.030
COS -Fee $68.09
Yes
19
Raft Up Permits - East Anchorage
$0.00 $ 62.00 M.C. 3.36.030
COS -Fee $62.29
Yes
20
Temporary Sea Lion Deterrent
$0.00 $ 136.00 M.C. 3.36.030
COS -Fee
$ 136.17
Yes
21
Towing Fee (Boats under 14')
see notes $ 71.00 M.C. 3.36.030
COS -Fee
$71.76
Yes
$0 if done by City staff
22
Flat Rate for Electricity - Marina Park
$0.13/kWh see notes M.C. 3.36.030
COS -Fee Pass
$12.03
$0.13
Yes
$12 plus actual per kWh
23
Thru
usage
Towing Fee (Boats over 14')
100% Contractor Cost see notes M.C. 3.36.030
COS -Fee Pass
$23.20
Yes
$23 plus 100% contractor
24
Thru
cost
Marina Park Deposit
$50/day $ 50.00 Resolution
Deposit
Yes
Charged against stay,
251
forfeited if canceled with less
Impound Fee (Boats over 14')
see notes see notes M.C. 3.36.030
Pass Thru
see notes
Yes
100% contractor cost
26
Lost/Broken Line
$0.00 $ 69.00 M.C. 3.36.030 Pass Thru
$69.73
Yes
27
City owned Guest Moorings - Offshore (Year-
$27/Night $1.25 per Lineal Foot Resolution Rental
$1.25/LF
Yes
28
Round)
(LF)
Dinghy Rack Rental - Marina Park/Balboa Yacht
$25/Month $35 per Month Resolution Rental
$35/Month
Yes
29
Basin
Impound Fee - Nightly Storage Fee
$50/Night see notes Resolution
Rental
see notes
Yes
Same charge as Sub -
30
Permittee Rental Rates
Large Vessel (80+ LF) Offshore Guest Mooring
Same as Offshore Guest $1.55 per Lineal Foot Resolution
Rental
$1.55/LF
Yes
31
Moorings (LF)
Large Vessel Guest Anchorage Rate -Non City
Same as Offshore Guest $0.047 per Lineal Foot Resolution
Rental
$0.047/LF
Yes
32
Tackle- no boat
Moorings (LF)
Marina Park Boat Slips (40' Slip)
$60/Night $80 per Night Resolution
Rental
$80/Night
Yes
33
Marina Park Boat Slips (55' Slip)
$82.50/Night $110 per Night Resolution
Rental
$110/night
Yes
34
Marina Park Boat Slips (Overhang Charge)
$1.50/Foot $2 per Foot Resolution
Rental
$2/Foot
Yes
35
Multi -hull Vessel - 2 hulls
Same as Offshore Guest $1.50 per Lineal Foot Resolution
Rental
$1.50/LF
Yes
36
Moorings (LF)
Multi -hull Vessel - 3 hulls
Same as Offshore Guest $1.75 per Lineal Foot Resolution
Rental
$1.75/LF
Yes
37
1
Moorings (LF)
Sub-Permitee Guest Moorings- Offshore (May-
$27/Night $1.25 per Lineal Foot Resolution
Rental
$1.25/LF
Yes
38
Oct)
(LF)
Sub-Permitee Guest Moorings - Offshore (Nov-
$16/Night $1.25 per Lineal Foot Resolution Rental
$1.25/LF
Yes
39
April)
I (LF)
Sub-Permitee Guest Moorings- Onshore (Year-
$11/Night $0.625 per Lineal Foot Resolution Rental
$0.625/LF
Yes
40
Round)
(LF
11-59