HomeMy WebLinkAbout04 - Balboa Yacht Basin Rental AdjustmentsITEM 4
TO: Members of the Newport Beach City Council
FROM: Tony Melum, Division of Harbor Resources
SUBJECT: Balboa Yacht Basin Rental Adjustments
RECOMMENDED Rescind Resolution 99 -51 and adopt Resolution 2000 -_ adjusting the slip,
ACTION: apartment, and garage rental rates at the Balboa Yacht Basin
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, by contract, to review
berthing charges of public and privately owned boating facilities in the general
area of Newport Bay serving the same boating public and set rates at levels
comparable to those facilities that are reasonable and not exorbitant.
Over the last 10 years the rental rates have been adjusted as follows:
1990 Slips $11.50 per foot per month (all sizes)
Apartment $850.00 per month
Garages $80.00 per month
1991 Slips
Apartment
Garages
1995 Slips
Apartment
Garages
$12.25 per foot per month (all sizes)
$900.00 per month
$90.00 per month
$14.50 per foot per month (all sizes)
$1,100.00 per month
$100.00 per month
1999 Slips 31' to 35' feet, $15.00 per foot per month
40' to 45' feet, $16.00 per foot per month
60 and above, $18.00 per foot per month
Apartment $1,450.00 per month
Garages $110.00 per month
The 1999 rates are the current rates.
A survey of comparable marinas in Newport Harbor completed in June of 2000
(see attached) indicates that rates range from $11.00 per foot per month to as
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much as $28.50 per foot per month depending on location and size of vessels.
Essentially, all of the marinas in Newport Harbor are at 100% occupancy. To
calculate the 2000 rates, we used the data from the survey and our own
knowledge about "reasonable" rates in the region.
The City also rents 3 apartments and 34 garages at the Balboa Yacht Basin site.
Their rates will also be adjusted at this time based on an appropriate inflation
factor.
Balboa Yacht Basin tenants have been notified of the recommended rate
increases. A letter has been sent to the Basin Yacht Club and notices have been
posted on the Basin bulletin board (see attached notice).. If approved by the City
Council, tenants at the BYB would see the increases on their November 2000 bills.
ATTACHMENTS: Attachment A- Resolution 2000 -
Attachment B - Marina Rate Comparisons Per Foot for the year 2000
Attachment B - Notice of Proposed Rate Increase
Newport Beach City Council
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Attachment A
RESOLUTION NO. 2000 -
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH ESTABLISHING
A REVISED SCHEDULED OF RATES FOR THE
BALBOA YACHT BASIN EFFECTIVE AUGUST 22, 2000
AND RESCINDING RESOLUTION NO. 99-51
WHEREAS, the City of Newport Beach owns, maintains and operates the Balboa Yacht
Basin located on Harbor Island; and
WHEREAS, the City of Newport Beach has renovated the Balboa Yacht Basin with
funds acquired from the State Department of Boating and Waterways; and
WHEREAS, the loan with the Department of Boating and Waterways requires the City
to periodically review berthing charges of public and privately owned boating facilities in the
general area of Newport Bay serving the same boating public and set rates at levels comparable
to those facilities that are reasonable and not exorbitant, and
WHEREAS, the City of Newport Beach has an agreement with the individual tenants of
the Balboa Yacht Basin to allow 60 days notice before a rate increase takes effect; and
WHEREAS, the City of Newport Beach has surveyed the berthing rates of other marinas
in Newport Harbor, now, therefore be it
RESOLVED by the City Council of the City of Newport Beach that the City of Newport
Beach sets the following rates which shall be effective on August 22, 2000 for the purposes of
notification and shall appear on the November 2000 billings:
Slip rental rate shall be set as follows:
a) 31 to 35 foot slips= $16.00 per foot per month.
b) 40 to 45 foot slips = $17.00 per foot per month.
c) 60 foot slips and above = $20.00 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 rent based on the length of the boat or the slip (whichever is greater), plus
a $50.00 security fee.
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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 $120.00 per month.
5. The three apartments located on the Marina property will be billed at $1,500.00 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. 99 -51 is hereby rescinded, effective immediately.
ADOPTED this 22nd day of August, 2000.
John E. Noyes
MAYOR
ATTEST:
LaVonne Harkless
CITY CLERK
Newport Beach City Council
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ATTACHMENT B - MARINA RATE COMPARISONS PER FOOT 2000
MARINAS
TOTAL SLIPS
TYPE
RATE PER FOOT
American Legion
50
Inside
$11.00
Outside
$12.00
Balboa Marina
132
31'
$18.20
35'
$18.20
40'
$19.85
45'
$19.85
Bay Shores
134
31'
$19.00
35'
$19.00
75'
$26.15
Bayside
98
31'
$19.60
35'
$19.60
40'
$23.75
45'
$23.75
60'
$28.50
De Anza
225
31' -35'
$16.71
35' -39'
$17.76
40' -50'
$20.00
Lido Marina
85
Inside 35' -45'
$25.00
Outside 36' -56' $25.00
Lido Yacht Anchorage
265
31'
$15.50
35'
$16.25
40'
$18.25
45'
$20.00
Newport Dunes
448
30'
$16.25
35'
$16.25
40'
$19.50
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ATTACHMENT C - NOTICE OF PROPOSED RATE INCREASE
CITY OF NEWPORT BEACH
Division
Resources
NOTICE
of Proposed Rate Increase
On August 22, 2000, the Newport Beach City Council will hear a proposal from the Harbor
Resources Division to increase the monthly slip rental rate and the rental rates for garages
and apartments. If approved by the City Council, rates will increase as follows
SLIP RATES
Size From
31' to 35' $15.00 /ft /month
40' to 45' $16.00 /ft /month
60' and up $18.00 /ft /month
APARTMENT RATES
From
BYB Apartment $1,450.00 /month
GARAGE RATES
From
BYB Garage $110.00 /month
To
$16.00 /ft /month
$17.00 /f t /month
$20.00 /ft /month
To
$1,500.00 /month
To
$120.00 /month
For more information about these increases please call Tony Melum at 949 - 644 -3044 or log onto
the City's website at www.city.newDort- beach.ca.us after Friday, August 18, to review the staff
report related to this increase. Interested parties may testify before the City Council at its
August 22, 2000 meeting beginning at 7:00 p.m. at the City Council Chambers (Building A) at City
Hall, 3300 Newport Boulevard, Newport Beach.
City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768
Newport Beach City Council