HomeMy WebLinkAbout2019-3 - Adopting and Revising Certain Harbor Department Fees and Rents Within the Schedule of Rents, Fines, and FeesRESOLUTION 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;
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.
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.
Diahe B. Dixon
Mayor
A
Leilani I. Brown � U �`
City Clerk; .
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
&'� C . Off_
Aaron C. Harp
City Attorney
Attachment: Exhibit 1— Revision to the Schedule of Rents, Fines, and Fees –
Harbor Fees and Select Rents
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2019-3 was duly introduced before and adopted by the City Council of said City at a regular meeting of
said Council held on the 22nd day of January, 2019; and the same was so passed and adopted by the
following vote, to wit:
AYES: Council Member Brad Avery, Council Member Joy Brenner, Council Member Jeff
Herdman, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon
NAYS: None
RECUSED: Council Member Duffy Duffield
ABSENT: Council Member Kevin Muldoon
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 23,d day of January, 2019.
�&r ' s
Leilani I. Brown
City Clerk
Newport Beach, California