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Home My WebLink About2023-62 - Setting the Fair Market Value License Fee for Short-Term Moorings Located Upon Tidelands in Newport HarborRESOLUTION NO. 2023-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, SETTING THE FAIR MARKET VALUE LICENSE FEE FOR SHORT-TERM MOORINGS LOCATED UPON TIDELANDS IN NEWPORT HARBOR WHEREAS, pursuant to the 1978 Beacon Bay Bill, as amended, ("Beacon Bay Bill") the City of Newport Beach ("City") acts on behalf of the State of California as the trustee of tidelands located within the City's limits, including Newport Harbor; WHEREAS, the Beacon Bay Bill and Chapter 17.60 of the Newport Beach Municipal Code ("NBMC") allow the City to issue permits to members of the public to construct, maintain, and use moorings upon those tidelands; WHEREAS, at its August 9, 2023 meeting, the Harbor Commission considered alternatives to mooring permits and mooring sub -permits by which members of the public would be able to use moorings in Newport Harbor and recommended by a vote of 6-0 (with one Commissioner absent) the creation of short-term mooring licenses; WHEREAS, at the same meeting, the Harbor Commission also reviewed and considered an appraisal by Netzer & Associates, dated August 2, 2023 ("Netzer Appraisal"), that analyzed the fair market value of rent for use of onshore and offshore moorings held by the City ("City moorings") under a short-term mooring license; WHEREAS, based on the Netzer Appraisal and documents and comments received at the meeting, the Harbor Commission further recommended: (a) that the short- term mooring license fee be set in accordance with the Netzer Appraisal, with subsequent changes to be based on adjustments to the index rate used to determine the rent for Balboa Yacht Basin slips ("Balboa Yacht Basin index rate"), (b) for the Harbor Commission to have the ability to re-evaluate subsequent changes in the mooring license fee and whether to continue the use of the Balboa Yacht Basin index rate if the City Council were to change the calculation of the Balboa Yacht Basin index rate or decide to utilize a different methodology to establish rents for the Balboa Yacht Basin, and (c) that persons who wish to join the waitlist for the short-term mooring licenses be charged an initial fee and annual fee to cover the cost associated with maintaining the waitlist, which fees shall be established by resolution of the City Council; Resolution No. 2023-62 Page 2 of 4 WHEREAS, Ordinance No. 2023-17, which is being introduced concurrently with this resolution, would add NBMC Section 17.60.045 (Short -Term Mooring Licenses) to provide a process for the issuance of short-term mooring licenses that would allow the public to use onshore and offshore moorings in Newport Harbor for a renewable one - month term; WHEREAS, like mooring permits, short-term mooring licenses issued by the City do not convey any underlying property interest, and instead only allow for the temporary mooring of a vessel upon the waters of Newport Harbor; WHEREAS, California Constitution Article 16, Section 6, NBMC Section 17.60.020(E) and City Council Policy F-7 require the users of public tidelands be subject to rental or lease charges reflective of the fair market value related to such use, as determined by the City Council; WHEREAS, the City Council has the exclusive discretion to determine fair market value rental or lease charges based, in part, upon the findings of a City -selected appraiser; and WHEREAS, the City Council has reviewed and considered the Netzer Appraisal as well as all other documents and comments in the record in connection with this resolution. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby find that the rent provisions contained in this resolution provide for the charging of a fair market short-term mooring license fee and that the license fee (and adjustments) constitutes fair market value rent for the City moorings. These findings are made by the City Council in its exclusive discretion but are based, in part, on the information in the appraisal of its City -selected appraiser and, in addition, on other testimony and documents in the record for this matter. The City Council further finds and determines the license fee for City moorings used pursuant to a short- term mooring license shall be set in accordance with the provisions of this resolution. The license fee for City moorings shall be set as follows: Resolution No. 2023-62 Page 3 of 4 Length (LF) Mooring Type License Fee (monthly) $/LF Total 18 Onshore $9.00 $162.00 30 Offshore $13.00 $390.00 40 Offshore $15.00 $600.00 50 Offshore $17.50 $875.00 60 Offshore $20.00 $1,200.00 95 Offshore $22.00 $2,090.00 Section 2: The short-term mooring license fee shall be adjusted annually on July 1 by the annual percentage change to the index rate used to determine rental increases for the Balboa Yacht Basin. The Harbor Commission shall re-evaluate subsequent changes in the mooring license fee and whether to continue the use of the Balboa Yacht Basin index rate if the City Council changes the calculation of the index rate or decide to utilize a different methodology to establish rents for the Balboa Yacht Basin, which recommendations, if any, shall be sent to the City Council for consideration. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: 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, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2023-62 Page 4 of 4 Section 5: The City Council finds the setting of fair market value license fee for moorings located upon tidelands 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 California Code of Regulations, Title 14, Division 6, Chapter 3 ("CEQA Guidelines"), because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the City Council finds the setting of fair market value license fee for moorings located upon tidelands is entitled to a Class 1 Categorical Exemption pursuant to CEQA Guidelines Section 15301 because the mooring rent contemplates the continued use of existing facilities, with no expansion of the proposed use. Further, the City Council finds the setting of fair market value license fee for moorings located upon tidelands is entitled to a Statutory Exemption pursuant to CEQA Guidelines Section 15273(a)(1) because the fair market value license fee established by the City Council will be used to meet operating expenses within the tidelands. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 14t" day of November, 2023 ATTEST: l..r t �a ��i Brown 41 - M62�� City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE kC, .AarC. Harp City Attorney 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. 2023-62 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 141h day of November, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Noah Blom, Mayor Pro Tern Will O'Neill, Councilmember Brad Avery Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 15th day of November, 2023. S""p Leilani I. Brown City Clerk Newport Beach, California