HomeMy WebLinkAbout2013-84 - Memorializing the Existing Loan of $9,676,658.50 From the General Fund to the Harbor Fund for the Dredging of Newport Harbor, Linda Isle and the Rhine Channel from 2011 to 2014RESOLUTION NO. 2013 -84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH MEMORIALIZING THE EXISTING
LOAN OF $9,676,658.50 FROM THE GENERAL FUND TO
THE HARBOR FUND FOR THE DREDGING OF
NEWPORT HARBOR, LINDA ISLE AND THE RHINE
CHANNEL FROM 2011 TO 2014
WHEREAS, the City Council of the City of Newport Beach ( "City ") approved
the Five -Year Tidelands Capital Plan for Newport Harbor on November 27, 2012: and
WHEREAS, the dredging of the Rhine Channel and Lower Bay was
included as part of the Five -Year Tidelands Capital Plan; and
WHEREAS, the City adjusted commercial and noncommercial tidelands
rent for piers, moorings, marinas, and tidelands leases to fair market value in December
2012; and
WHEREAS, the State Lands Commission ( "SLC ") approved the
establishment of a Newport Harbor Capital Fund to collect the net incremental increase in
revenue generated from the adjusted rental rates as well as any additional trust funds, at
the City Council's discretion, in order to (1) reimburse the General Fund for monies
loaned to the tidelands funds for Newport Harbor improvements and maintenance
activities, if the loan request was formalized in advance of any expenditures from the
General Fund and (2) fund the improvements and maintenance activities provided in the
Five Year Tidelands Capital Plan for Newport Harbor; and
WHEREAS, the SLC approved the establishment of the Newport Harbor
Capital Fund on June 21, 2013; and
WHEREAS, the cost of dredging for Lower Harbor, the Rhine Channel and
Linda Isle from 2011 through 2014 is $9,676,658.50 ($11,214,658.50, less the
$1,538,000.00 Orange County contribution); and
WHEREAS, the General Fund loaned $9,676,658.50 to the Newport Harbor
Capital fund for such dredging; and
WHEREAS, the dredging loan was included in the information provided to
the SLC on November 27, 2012, and the SLC did not object to the dredging loan; and
WHEREAS, this dredging loan occurred prior to SLC's condition that all
loans to the Harbor Fund greater than $1,000,000 be pre - approved by the SLC; thus, the
City is not required to provide notice of the dredging loan to the SLC or seek the pre -
approval of the dredging loan from the SLC.
NOW, THEREFORE, the City Council of the City of Newport Beach
resolves as follows:
Section 1: The City shall reimburse the General Fund from the Newport
Harbor Capital Fund for the cost of dredging Lower Harbor, the Rhine Channel and Linda
Isle from 2011 through 2014.
Section 2: The total cost of such dredging is $9,676,658.50
($11,214,658.50, less the $1,538,000.00 Orange County contribution).
Section 3: The City Council finds 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.
Section 4: 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 26th day of November, 2013.
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Keith Curry, Mayor
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