HomeMy WebLinkAbout04 - Balboa Yacht Basin Rental AdjustmentsJuly 26,1999
Council Agenda
Item No. 4
To: Mayor and Members of the City Council
From: Tim Riley, Fire and Marine Chief
Subject: Balboa Yacht Basin Rental Adjustments
RECOMMENDATION
If desired, rescind Resolution 95 -46 and adopt Resolution 99- , adjusting the slip,
apartment and garage rental rates at the Balboa Yacht Basin; approve the attached
budget amendment establishing a Capital Improvement Program for ongoing
maintenance at the Balboa Yacht Basin; and increase revenue estimates for slip revenues
in the current budget originally projected for $1,090,000.00 to a new projected amount
of $1,190,000.00
BACKGROUND
In 1982, the City entered into a loan and operations contract with the State Department
of Boating in Waterways (Department). The Department loaned the City 2.5 million
dollars which was to be used to renovate the Balboa Yacht Basin. The City agreed to
repay the loan from gross revenues originating from fees and rentals charged to users
of the Balboa Yacht Basin. As part of the payment obligation, the City is required to
review berthing charges of public and privately owned boating facilities in the general
area of Newport Bay serving the same boating public and is then required to set rates at
comparable levels for comparable facilities and services.
A survey of comparable marinas in Newport Harbor completed in May of 1999 (see
attached) indicates that rates range from $11.00 per foot per month to as much as $22.00
per foot per month, depending on location and size of vessels. Essentially all of the
marinas in Newport Harbor are at 100% occupancy. The City also rents three
apartments and 34 garages at the Balboa Yacht Basin site. The apartments are currently
rented at $1,400.00 per month. The increase to $1,450.00 is based upon a telephone
survey of current similar sized apartments for rent in our area. The garages are
currently at $100.00 and are proposed to go to $110.00. This rate is approximately 60%
of the market rate in Orange County based upon a telephone survey. We have kept the
rate artificially low because the garages are available to slip tenants only and this is the
only amenity provided to them at the Balboa Yacht Basin over and above parking and
restrooms.
The apartment and garage leases have no notice provision for rent increases. It is
proposed to give them 30 days notice. As a result, the new rate would be effective
September 1, 1999. The slip agreements require 60 days notice. The new rate would
take effect on October 1, 1999.
Based upon these rental adjustments our revenue projections for the Balboa Yacht Basin
should be increased by $100,000. We would recommend that this increase be allocated
to a Capital Improvement Program to be spent on maintenance items at the Yacht Basin
that have been requested in the recent past but deferred.
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MARINA RATE COMPARISONS PER FOOT 1999
MARINAS
TOTAL SLIPS
TYPE
RATE PER FOOT
American Legion
50
Inside
$11.00
Outside
$12.00
Balboa Marina
132
31'
$16.50
35'
$16.50
40'
$18.00
45'
$18.00
Bay Shores
134
31'
$16.50
35'
$16.50
75'
$22.00
Bayside
98
31'
$16.50
35'
$16.50
40'
$20.00
45'
$20.00
60'
$22.00
De Anza
225
31'
$14.75
35'
$14.75
40'
$15.25
45'
$15.25
60'
$15.25
Lido Marina
85
35'
$20.00
40'
$20.00
45'
$20.00
Lido Yacht Anchorage
265
31'
$12.50
35'
$14.00
40'
$14.00
45'
$16.50
Newport Dunes
448
31'
$15.75
35'
$15.75
40'
$18.00
Balboa Yacht Basin
171
Current Rate
all sizes
$14.50
Revised Rate
31' to 35'
$15.00
40' to 45'
$16.00
60' and above
$18.00
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RESOLUTION NO. 99 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ESTABLISHING A REVISED
SCHEDULE OF RATES FOR THE BALBOA YACHT BASIN
EFFECTIVE JULY 26,1999 AND RESCINDING RESOLUTION
No. 95 -46:
WHEREAS, the City of Newport Beach owns, maintains and operates a marina at the Balboa
Yacht Basin; and
WHEREAS, the City of Newport Beach has surveyed the berthing rates of other marinas in
Newport Harbor, and as part of its contract with the State of California, has agreed to charge competitive
rates at the redevelopment marina.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach, that
the City of Newport Beach set the following rates which shall be effective for the fiscal year 1999/2000:
1. Slip rental rate shall be set as follows:
a) 31 and 35 foot slips $15.00 per foot per month.
b) 40 and 45 foot slips $16.00 per foot per month.
c) 60 foot slips and above $18.00 per foot per month.
Monthly rental shall be calculated upon the appropriate rate times the vessel length or slip
length whichever is longer.
2. Slip tenants at the time of executing a rental agreement shall pay to the City both the first and
last month's rents based on the length of the boat or the slip, whichever in greater, plus a $50.00 security
fee.
3. Each slip or berthing space is individually metered for electricity. The tenant will be
responsible for any electrical usage at his rental slip. :Electrical rates will be billed by the City at the rate
charged by Southern California Edison Company.
4. The detached garage storage spaces that are ancillary to the marina will be charged at the rate
of $110.00 per month.
5. The three apartments located on the Marina property will be billed at $1,450.00 per month.
Apartment tenants shall pay the City one month's rent in advance and the equivalent of one month's rent
as security deposit.
6. Resolution No. 95-46 is hereby rescinded effective immediately.
ADOPTED this e day of 1999.
MAYOR
ATTEST:
CITY CLERK
S
City of Newport Beach NO. BA- 004
BUDGET AMENDMENT
1999 -00 AMOUNT: $100,000.00
ECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Budget Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations X No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from undesignated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase revenue estimates by additional slip revenues and appropriate the funds to
Balboa Yacht Basin maintenance items. This is a new capital project and has no pdor budget amendments.
ACCOUNTING ENTRY:
Amount
BUDGETARY FUND BALANCE Debit Credit
Fund Account Description
010 3605 Fund Balance Control
REVENUE APPROPRIATIONS (3601)
Fund /Division Account Description
230 5421 Regular Balboa Yacht Basin $47,000.00
2365 5421 Regular Balboa Yacht Basin $53,000.00
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 7231 Tidelands - Capital
Account Number C2370538 Balboa Yacht Basin Maintenance Programs $100,000.00
Division Number
Account Number
i
t
Division Number
Account Number
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Signed: 2-21::6
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Finance D ector Date
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Administrative Approval: City Manager Date
Signed:
City Council Approval: City Clerk Date