HomeMy WebLinkAbout12 - Balboa Yacht Basin RatesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 12
December 6, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
9491644 -3002 or dkiff(a)newportbeachca.gov
SUBJECT: Balboa Yacht Basin Rates: Resolution 2010 -_ Relating to Increasing Slip,
Side Tie, Garage, and Apartment Rates at the Balboa Yacht Basin
RECOMMENDATION:
Adopt Resolution 2010- _ establishing increased rates for slips, side ties, garages, and
apartments at the Balboa Yacht Basin.
DISCUSSION:
The City's tidelands trust, also known as the Beacon Bay Bill (Chapter 74 of the Statutes of
1978), dedicates certain tide and submerged lands ( "Tidelands ") are held in trust by the City on
behalf of the people of California. These lands include most of Lower Newport Bay, home to
about 1,200 onshore and offshore moorings, as well as residential piers, commercial piers, and
other operations.
The Beacon Bay Bill directs that the City manage the Tidelands as follows
1. For the establishment, improvement, and conduct of a public harbor; and for the
construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays,
ways, and streets, and other utilities, structures, and appliances necessary or convenient for
the promotion or accommodation of commerce and navigation.
2. For the establishment, improvement, and conduct of public bathing beaches, public marinas,
public aquatic playgrounds, and similar recreational facilities open to the general public; and
for the construction, reconstruction, repair, maintenance, and operation of all works,
buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient
for the promotion and accommodation of any such uses.
3. For the preservation, maintenance, and enhancement of the lands in their natural state and
the reestablishment of the natural state of the lands so that they may serve as ecological
units for scientific study, as open space, and as environments which provide food and
habitat for birds and marine life, and which favorably affect the scenery and climate of the
area; and
In the opinion of the City, the Beacon Bay Bill and the California Constitution (Article XVI,
Section 6) obligates the City to charge appropriate and non - discriminatory rates for the use of
tidelands, without conferring a benefit to private individuals for the use of public property in
violation of the California Constitution's prohibition on gifts of public funds.
On July 27, 2010, the City Council formed the Ad Hoc Committee on Harbor Charyes
( "Committee "). The Council asked the Committee to review harbor charges, including, but not
limited to:
• Fees based on the cost of providing a Harbor - related service;
• Mooring rates — for shore moorings and offshore moorings;
• Balboa Yacht Basin charges — slips, garages, and apartments; and
• Commercial piers not already on leases.
The Committee analyzed fee -based charges in September and October, and brought a proposal
to the City Council on November 9, 2010, to adopt updated charges. The measure passed 7 -0.
The Committee made a recommendation on mooring charges (and transfers) and brought those
to the City Council on November 23, 2010. That recommendation passed 4 -2.
The Committee's next work was to address other charges based on private use of public
tidelands, including the slips, side ties, garages, and apartments at the Balboa Yacht Basin and
the Bay's commercial piers not already on leases. This agenda item focuses on the Balboa
Yacht Basin (BYB).
ABOUT THE BALBOA YACHT BASIN
The City -owned BYB sits off of Harbor Island Drive near the Galley Cafe.
Balboa Yacht Basin - aerial
I
The BYB, in is present configuration, has been in operation since 1987 and includes the
following:
Slips and Side Ties 176 slips or side ties
25-39'= $18 /LF /Mo
40-49'= $19 /LF /Mo
50'+ = $23/LF /Mo
November 2002
2 @ $1,700 /mo November 2002
1 @ $2,000 /mo
In 1987, the City renovated the BYB's docks, taking out a $3,457,930 loan from the Department
of Boating and Waterways (DBAW). The DBAW loan has 5 years remaining to be paid back,
and shall be paid back by 2016. The loan includes a directive that the City review berthing
charges ... serving (the) same boating public ... (and) set rates at comparable levels for
comparable facilities and services...
Given that rates have not been adjusted since November 2002, the ad hoc Committee believes
that an adjustment is necessary. As such, the Committee and staff met with the BYB
Stakeholders Group (any person who rents a slip at the BYB) on two occasions - the meetings
were open to the general public as well.
• BYB Stakeholders meeting — 9 -16 -2010 (Council Chambers)
• BYB Stakeholders meeting — 11 -17 -2010 (Fire Conference Room)
At the meetings, the Committee members and staff presented a Rate Proposal (see attachment
B) that would have used a broad marina index (called the Newport Harbor Marina Index or
"NHMI ") and brought rates up to market by 2013.
Stakeholders offered a series of comments to the rate proposal, including:
1. General dissatisfaction with the scope and timing of the increase given a recession in
boating and difficult economic times for boaters;
2. A hope that the BYB would remain a low- priced alternative to other NH marinas;
3. A request to use other marinas in the index, including public marinas in Dana Point or
Long Beach;
4. Statements that the amenities at the BYB need to be improved and upgraded, especially
the quality and cleanliness of the restrooms;
5. Rate should be adjusted downward for Possessory Interest Tax (PIT) obligations of the
tenants that are not present in other non - public marinas;
6. The marina index marinas' "rack rates" staff used to calculate the resulting BYB rates
were not the actual rates (discounted for dealing) that customers were being charged in
November 2010; and
3
• 3 slips @ 25'
•'120 slips @31 -39',
• 37 slips @ 40 -49'
• 10 slips @ 50'
• 3 slips @ 60'
• 3 slips @ 75'
Garages . °
31`200 SF each),
_..-..., ,�..'
l #ii e 1. Y,
Apartments
3
25-39'= $18 /LF /Mo
40-49'= $19 /LF /Mo
50'+ = $23/LF /Mo
November 2002
2 @ $1,700 /mo November 2002
1 @ $2,000 /mo
In 1987, the City renovated the BYB's docks, taking out a $3,457,930 loan from the Department
of Boating and Waterways (DBAW). The DBAW loan has 5 years remaining to be paid back,
and shall be paid back by 2016. The loan includes a directive that the City review berthing
charges ... serving (the) same boating public ... (and) set rates at comparable levels for
comparable facilities and services...
Given that rates have not been adjusted since November 2002, the ad hoc Committee believes
that an adjustment is necessary. As such, the Committee and staff met with the BYB
Stakeholders Group (any person who rents a slip at the BYB) on two occasions - the meetings
were open to the general public as well.
• BYB Stakeholders meeting — 9 -16 -2010 (Council Chambers)
• BYB Stakeholders meeting — 11 -17 -2010 (Fire Conference Room)
At the meetings, the Committee members and staff presented a Rate Proposal (see attachment
B) that would have used a broad marina index (called the Newport Harbor Marina Index or
"NHMI ") and brought rates up to market by 2013.
Stakeholders offered a series of comments to the rate proposal, including:
1. General dissatisfaction with the scope and timing of the increase given a recession in
boating and difficult economic times for boaters;
2. A hope that the BYB would remain a low- priced alternative to other NH marinas;
3. A request to use other marinas in the index, including public marinas in Dana Point or
Long Beach;
4. Statements that the amenities at the BYB need to be improved and upgraded, especially
the quality and cleanliness of the restrooms;
5. Rate should be adjusted downward for Possessory Interest Tax (PIT) obligations of the
tenants that are not present in other non - public marinas;
6. The marina index marinas' "rack rates" staff used to calculate the resulting BYB rates
were not the actual rates (discounted for dealing) that customers were being charged in
November 2010; and
3
7. Increase the rates more gradually than over three periods.
BACK TO THE AD HOC COMMITTEE
As a result of the Stakeholder meetings, the Committee modified the rate proposal — it now
reflects the proposal offered here in this agenda item. The modifications bring the proposed
rate changes downward by:
• Changing the NHMI mix (to the same Index used for moorings);
• Taking into account PIT; and
• Adjusting for local marina discounts or incentives.
The below proposal is the ad hoc Committee's formal proposal to the Council:
Proposal. Increase slip and side tie rates over three (3) periods (starting with an increase in
2011 and ending in 2013) to roughly the average of low- to moderately- priced marinas' rates in
Newport Harbor. To arrive at this number, the Committee reviewed:
• Rate data of other Newport Harbor area marinas, apartments, and garages;
• Listings of amenities in other Newport Harbor marinas;
• Rate proposals or concepts offered by other groups, including BYB tenants; and
• Testimony offered in the public record at meetings associated with BYB rate
increases.
In order to factor in inflation, a rate adjustment based on a percentage of the NHMI rate is more
appropriate than dollar rates. As a result, the resolution suggested for adoption includes the
following chart:
A B C _...
In the above chart, a slip in the 30 -39' range would go from 84% of the current NHMI rate to
89% in 2011, and so on. A slip or side tie in the 50 -59' range would go from 71% of the NHMI
today to 81 % in 2011 and 90% in 2012.
Marina Index: The Committee suggested that the NHMI include the following marinas in 2010
and 2011, but that the City's Harbor Resources Manager or his or her designee may adjust or
substitute the marinas within the Index in 2012 and beyond via posting the indexed marinas on
the City's website, provided that the substitute marinas are considered low- or moderately -
priced marinas in Newport Harbor: "
• Newport Dunes Marina • Ardell Marina
• Harbor Marina • Port Calypso Marina
2011
2012
2013
2013 Goal
Current
Rates (as
Rates(as
Rates (as
-Rate -
Slip
Current
Rates as a
a %of
a %of
a %of
Discounte
Net
Lengths
BYB Rates
%of Goal
Goal
Goal
Goal
d Rate
Difference
Rates
Rate)
Rate)
Rate)
after PIT
'3Q = 39' '
$ 18.00
; 84%
89%
95%
100% -
$ 21.39
$ '3.39''
40749-
$ 19.00
` 640
7fi%
88%
100%
$ 29.76
$ 10.7fi
i'
t 23.0Q
X71%
? 81% e
'S00%a
32 $
w9 2
�(f'.59"
e_$
,.`, .#
.s<90f
60 - 75' 1
$ 23.00 1
59%
73%
86%
100%
$ 38.86
$ 15.86
In the above chart, a slip in the 30 -39' range would go from 84% of the current NHMI rate to
89% in 2011, and so on. A slip or side tie in the 50 -59' range would go from 71% of the NHMI
today to 81 % in 2011 and 90% in 2012.
Marina Index: The Committee suggested that the NHMI include the following marinas in 2010
and 2011, but that the City's Harbor Resources Manager or his or her designee may adjust or
substitute the marinas within the Index in 2012 and beyond via posting the indexed marinas on
the City's website, provided that the substitute marinas are considered low- or moderately -
priced marinas in Newport Harbor: "
• Newport Dunes Marina • Ardell Marina
• Harbor Marina • Port Calypso Marina
• Lido Yacht Anchorage Bayside Village Marina
• Swales Marina; and
To ensure that the proposed pricing is appropriate, the Committee suggested that the City
monitor the Newport Harbor marina market to ensure that the proposed fee increases
appropriately reflect market conditions. If in the opinion of the Harbor Resources Manager,
the slip and side tie increases within the Resolution are, over time, not reflective of market
conditions, the Committee recommended that the Harbor Resources Manager bring this to the
attention of the City Manager and City Council for potential rate adjustment.
OTHER BYB ELEMENTS
As noted, there are other City -run elements at the BYB, including 31 garages and three (3)
apartments. The proposal for these elements is as follows:
BYB ELEMENT
CURRENT RATE
PROPOSED RATE
Garages (31)
$200 /month
• Mar 2011 —to 262.50 /month
• Mar 2012 — to $325.00 /month,
then CPI
Apartments (3):
2 @ $1,700 /month
• Mar 2011— all three to
Current Tenants
1 @$2,000 /month
$2000.00 /month
• Mar 2012 — to $2,250 /month,
then CPI
Apartments (3):
.Mar 2011 - $2,500 /month
New Tenants if an
N/A
These amounts are based on a market analysis done by staff under review of the ad hoc
Committee.
Fiscal Impact: If the rate proposals are adopted, by the end of three periods, the revenue from
the Balboa Yacht Basin would go from about $1.548 million received today to $2.083 million
received in 2013 (net increase of $535,000 per year, not factoring in inflation).
Environmental Review: This is not a project under CEQA.
Public Notice: This agenda item has been noticed according to the Ralph M. Brown Act (72
hours in advance of the public meeting at which the City Council considers the item).
Submitted by:
Dave Kiff
City Manager
Attachments: A - Resolution 2010 -_
B — BYB Stakeholder presentation (11 -9 -2010)
x ^�
Attachment A
RESOLUTION 2010-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
RELATING TO HARBOR CHARGES, SPECIFICALLY
SLIP, SIDE TIE, GARAGE, AND APARTMENT RATES
AT THE BALBOA YACHT BASIN
WHEREAS, the City's tidelands trust, also known as the Beacon Bay Bill (Chapter 74 of
the Statutes of 1978), dedicates certain tide and submerged lands ( "Tidelands ") to be held in
trust by the City on behalf of the people of California; and
WHEREAS, the Beacon Bay Bill directs that the City manage these lands as follows:
(1) For the establishment, improvement, and conduct of a public harbor; and for the
construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays,
ways, and streets, and other utilities, structures, and appliances necessary or convenient
for the promotion or accommodation of commerce and navigation.
(2) For the establishment, improvement, and conduct of public bathing beaches, public
marinas, public aquatic playgrounds, and similar recreational facilities open to the
general public; and for the construction, reconstruction, repair, maintenance, and
operation of all works, buildings, facilities, utilities, structures, and appliances incidental,
necessary, or convenient for the promotion and accommodation of any such uses.
(3) For the preservation, maintenance, and enhancement of the lands in their natural state
and the reestablishment of the natural state of the lands so that they may serve as
ecological units for scientific study, as open space, and as environments which provide
food and habitat for birds and marine life, and which favorably affect the scenery and
climate of the area; and
WHEREAS, the City believes that effective management and conduct of a public harbor
obligates it to charge appropriate and non - discriminatory rates for the use of tidelands, without
conferring a benefit to private individuals for the use of public property in violation of the
California Constitution's prohibition on gifts of public funds; and
WHEREAS, the City believes that there are at least two types of fees or charges in the
Harbor — fees based on the cost of providing a service (such as processing a regional general
permit) and charges based on the fair market value use of a public asset (such as some
commercial pier charges, mooring charges, charges at the City -owned Balboa Yacht Basin
( "BYB "), and more); and
WHEREAS, the City believes that various harbor activities should be set at or near fair
market value to avoid granting or conveying Tidelands to any private party; and
WHEREAS, the City Council formed the Ad Hoc Committee on Harbor Charges
( "Committee ") on July 27, 2010 with the intent to have the Committee review harbor charges,
including, but not limited to:
• Fees based on the cost of providing a service;
6
• Mooring rates — for shore moorings and offshore moorings;
• Balboa Yacht Basin charges— slips, garages, and apartments; and
• Commercial piers not already on leases.
WHEREAS, the Committee believes that rates at the BYB should be set at an amount
consistent with Fair Market Value in Newport Harbor; and
WHEREAS, a loan from the California Department of Boating and Waterways for
improvements at the BYB suggests that the City "review berthing charges ... serving same
boating public ... (and) set rates at comparable levels for comparable facilities and services..."
WHEREAS, the Committee has held public meetings with BYB stakeholder groups and
has made a proposal, revised following public input, to the City Council to increase rates at the
BYB over a three period duration (starting with an increase in 2011 and ending in advance of
the 2013 billing) to roughly an average of low- to moderately- priced berthing rates in Newport
Harbor. To arrive at this number, the Committee reviewed:
• Rate data of other Newport Harbor Marinas, apartments, and garages provided by City
Harbor Resources staff;
• Listings of amenities in other Newport Harbor marinas;
• Rate proposals or concepts offered by other groups, including tenants at the BYB; and
• Testimony offered in the public record at meetings associated with BYB rate increases.
Now. therefore be it:
RESOLVED by the City Council of the City of Newport Beach that the above recitals are
true and correct and constitute findings that support the action taken herein; and be it also
RESOLVED that the City Council of the City of Newport Beach finds that the Fair Market
Value of apartments, garages, slips, and side ties at the Balboa Yacht Basin are described
within this Resolution and, for the slips and side ties, reflects an average of low- to moderately -
priced marina slip rates in Newport Harbor with comparable amenities; and be it also
RESOLVED that City Council of the City of Newport Beads hereby amends the City's
Master Fee Resolution to set the following charges for the Balboa Yacht Basin:
1) Beginning in March 2011, rental of a slip or side tie at the BYB shall be set at the
percentage of the Newport Harbor Marina Index rate as shown in Column A in the chart
below.
2) Beginning in Mardi 2012, rental of a slip or side tie at the BYB shall be set at the
percentage of the Newport Harbor Marina Index rate as shown in Column B in the chart
below.
3) Beginning in March 2013, rental of a slip or side tie at the BYB shall be set at the
percentage of the Newport Harbor Marina Index rate as shown in Column C in the chart
below.
M
Ij
A _.a C
(for example, in 2011, a 40' BYB slip or side tie would beset at 76% of the average Newport
Harbor Marina Index rate for a 40' slip. That would adjust to 88% of the NHMI rate in 2012)
4) That successive years' BYB slip and side tie rates be set at 100% of an average of the
Newport Harbor Marina Index and that this shall be the rate - setting mechanism set forth in
the Newport Beach Master Fee Resolution going forward from July 1, 2013; and
5) The rate charged shall be the greater of the slip or the boat. If the boat is longer than the
slip it is in, the charge shall be based on the slip price plus the extra LF of the boat, at that
same size slip rate.
6) Starting in March 2012, rentals for current tenants at all three apartments at the BYB shall
be set at $2,000 /month. Starting in March 2013, rentals for current tenants at all three
apartments at the BYB shall be set at $2,250 per month.
7) If a new tenant rents an apartment at the BYB, that tenants' rate shall be set at
$2,500 /month immediately.
8) From July 1, 2013 forward, apartment rentals at the BYB shall be adjusted once a year by
the Consumer Price Index (LA- Orange- Riverside, All Urban Consumers).
9) Starting in March 2011, garage rentals at the BYB shall be set at $262.50 per month.
Starting in March 2012, garage rentals at the BYB shall be set at $325.00 per month.
10) From July 1, 2012 forward, garage rentals at the BYB shall be adjusted once a year by the
Consumer Price Index (LA- Orange- Riverside, All Urban Consumers).
RESOLVED by the City Council of the City of Newport Beach that it hereby directs that
the Newport Harbor Marina Index for valuing BYB slips and side ties include the following
marinas in 2010 and 2011, but that the City's Harbor Resources Manager or his or her designee
may adjust or substitute the marinas within the Index in 2012 and beyond via posting the
indexed marinas on the City's website, provided that the substitute marinas are considered low -
or moderately -priced marinas in Newport Harbor:
• Ardell Marina
• Newport Dunes Marina
• Harbor Marina
• Lido Yacht Anchorage
• Port Calypso
• Swales Marina; and
• Bayside Village Marina
....and be it also
C,
2011
2012
2013
2013 Goal
Slip
Current
Current
Rates
Rates (as
Rates (as
Rates (as
Rate-
Net
as a
a %of
a %of
a %of
Discounte
Lengths
BYB Rates
%of Goal
Goal
Goal
Goal
d Rate
Difference
Rates
Rate)
Rate)
Rate)
after PIT
30 39 ",$
18.00
84% '`
89% .:'
95%
100%
$;2139
$ '3.39:
40 - 49'
$ 19.00
64% f
76% :
`. 88%
:100%
$ 29.76
$ 10.761:
60 - 75''
$ 23.00
1 59% 1
73% 1
86% 1
100%
1 $ 38.86
1 $ 15.86
(for example, in 2011, a 40' BYB slip or side tie would beset at 76% of the average Newport
Harbor Marina Index rate for a 40' slip. That would adjust to 88% of the NHMI rate in 2012)
4) That successive years' BYB slip and side tie rates be set at 100% of an average of the
Newport Harbor Marina Index and that this shall be the rate - setting mechanism set forth in
the Newport Beach Master Fee Resolution going forward from July 1, 2013; and
5) The rate charged shall be the greater of the slip or the boat. If the boat is longer than the
slip it is in, the charge shall be based on the slip price plus the extra LF of the boat, at that
same size slip rate.
6) Starting in March 2012, rentals for current tenants at all three apartments at the BYB shall
be set at $2,000 /month. Starting in March 2013, rentals for current tenants at all three
apartments at the BYB shall be set at $2,250 per month.
7) If a new tenant rents an apartment at the BYB, that tenants' rate shall be set at
$2,500 /month immediately.
8) From July 1, 2013 forward, apartment rentals at the BYB shall be adjusted once a year by
the Consumer Price Index (LA- Orange- Riverside, All Urban Consumers).
9) Starting in March 2011, garage rentals at the BYB shall be set at $262.50 per month.
Starting in March 2012, garage rentals at the BYB shall be set at $325.00 per month.
10) From July 1, 2012 forward, garage rentals at the BYB shall be adjusted once a year by the
Consumer Price Index (LA- Orange- Riverside, All Urban Consumers).
RESOLVED by the City Council of the City of Newport Beach that it hereby directs that
the Newport Harbor Marina Index for valuing BYB slips and side ties include the following
marinas in 2010 and 2011, but that the City's Harbor Resources Manager or his or her designee
may adjust or substitute the marinas within the Index in 2012 and beyond via posting the
indexed marinas on the City's website, provided that the substitute marinas are considered low -
or moderately -priced marinas in Newport Harbor:
• Ardell Marina
• Newport Dunes Marina
• Harbor Marina
• Lido Yacht Anchorage
• Port Calypso
• Swales Marina; and
• Bayside Village Marina
....and be it also
C,
RESOLVED by the City Council of the City of Newport Beach that Harbor Resources
staff is directed to monitor activities at the Balboa Yacht Basin to ensure that this Resolution's
fee increases appropriately reflect market conditions. If in the opinion of the Harbor Resources
Manager, the rate increases within this Resolution are, over time, not reflective of market
conditions, the Manager shall bring this to the attention of the City Manager and City Council;
and be it also
ADOPTED this 6th day of December, 2010.
KEITH CURRY
Mayor of Newport Beach
ATTEST:
LEILANI BROWN
City Clerk
uY
Revised Proposal
Prepared November 16, 2010
City of Newport Beach
Part 2 (B — BYB Slips, Garages, Apartments)
Key Principles — BYB Slips
Outcome should:
o Comply with obligations of DBAW loan:
"review berthing charges ... serving same boating
public ... set rates at comparable levels for
comparable facilities and services..."
• Be fair, reasonable, and legally defensible.
• Be phased in over time to minimize economic
disruption.
4, Suggestion = 3 periods (201 1, 20129 2013)
• Be responsive to market conditions.
o Result in a charge that is annually updated.
Comparing HarborAmenities (pt 1)
Bahia
Balboa
Bayshore
American
Corinthian
Balboa Bay
Marina
Balboa
Marina
Amenities
Legion
Ardell
YC
Club
(CalRec)
Yacht Basin
Balboa YC
(Cal Rec)
Bar,
x
x
x
DlnghV'Facks'
x
x
Dock Boxes: i i�
x
x
x
x
x
x
x
Dock ,C
x
x
x
x
Pry
x
x
Fitness Center `
.Grocery Store:
fi6kt
x
x
Aakuzzi
x
Mernliers',Onfy.'
x
x
x
Parking F"
x
x
x
x
x
x
x
X
x
x
Pool ,
Power
x
x
x
x
x
x
x
x
Pum06'UIt--�,-
x
x
x
Re
x
Restrooms
X
x
x
x
x
x
x
x
SecuritylCafe
X
x
Shbw ers
X
x
x
x
x
x
x
Washer &,Dryer ,
--
I x
I--
lWater .
x
x
I x
x
x
x
x
x
Comparing Harbor Amenities (pt 2)
** Source: Newport Harbor Slip Rate Survey, March 2010
Baysi ce
Bays i d e
Lido
Lido Yacht
Villa Cove e
Marina
Vill age
[(De
Harbor
Marina
Anchorage
Newport
Port
Swales
l
Marina
I
"
Amen We's
(Cal ReC)
An za)
Marina
Village
(Bellpor)
Dunes
Calypso
Anchorage
(Cal Rec)
Bar;,
X
X
X
X
Dinghy "Racks :!
X
X
Extra Fee
X
X
X
X
X
Dock, C'uts,
X
X
X
X
X
X
X
X
Fitness wpinite r
X
Grqiceryzs,tcre'�
X
X
Laspr ay4 k Ratk-s.,
Lauqch"A-'iirr p; , ",
X
Members O n I y
,Parking -
X
Extra Fee
X
X
X
X
X
,Phone , . .. ...
X
X
X
X
X
X
X
X
X
Pool
X
X
I X
X
X
X
X
X
X
X
X
X
X
kesfau'ranis-NeOi6y
X
X
Rostio mm —,, -"- 1 0
, "d
X
Extra Fee
X
X
X
X
X
Sec-urityj,`,Gate ,7c`'
X
Shops ',N6atby,,':,
X
X
Showers
X
Extra Fee
X
5
X
X
X
Washef-, Dryer. r,, -
X
Water
X
Extra Fee
X
X
X
X
X
X
** Source: Newport Harbor Slip Rate Survey, March 2010
b
n Goal:
o Average of NH marinas.
j o Arrive at that number after three periods:
First increase = Jan 2011
. Second increase = Jan 2012
At market = Jan 2013 and onward (adjusted annually
thereafter).
Account for /deduct PIT equivalent.
Slip fees set in 10' increments (generally).
o Fees based on size of slip but if boat in slip is larger
than slip, add additional charge per LF beyond the slip
length.
Example: 43' boat in 35' slip. Pays for 35' in 30 -39' slip rate
range plus 8 more feet at 30 -39' slip length rate.
Proposed Slip Rates
Includes:
• Deductions from Marina Index Average for PIT at I % (Prop 13 rate)
• Inflation assumption at 2% per year.
Ideas:
• Optional one time offer: Pay 6 months in advance, receive 2 weeks free.
Pay 12 months in advance, receive I month free.
•Future amenity to consider: Free Wi-Fi for the marina (cost for upgrade
unknown)
Current BYB
Target Rate
Proposed
Proposed
Proposed
Net increase
Slip Lengths
Slip Rates
by 2013
Rates in 2011
Rates in 2012
Rates in 2013
per LF per
(LF /Mo)
Month
Per LF /Mo
Per LF /Mo
Per LF /Mo
'30,- 39' -'
%84
$
28.39
$ 21.46
$ 24.93
$ 28.39
$ 10.39
40 - 49'
$19:00
$
35.15
$ 24.38
$ 29.77
$ 35.15
$ 16.15
50-70
$23.00
$
43.33
$ 29.78
$ 36.55
$ 43.33
$ 20.33
Includes:
• Deductions from Marina Index Average for PIT at I % (Prop 13 rate)
• Inflation assumption at 2% per year.
Ideas:
• Optional one time offer: Pay 6 months in advance, receive 2 weeks free.
Pay 12 months in advance, receive I month free.
•Future amenity to consider: Free Wi-Fi for the marina (cost for upgrade
unknown)
Proposed Garage Rates
Comparisons for 10'x 20' Storage Unit Recommendation:
BYB Garages $ 200.00
Extra Storage, Bristol in Costa Mesa $ 375.00
Increase to $325 per month in 2
Mini Storage, Bear St in Costa Mesa $ 299.00 periods
Baker Fairview Self Storage, Costa M( $ 295.00
Public Storage, Newport Blvd, Costa 1 $ 283.00
(BYB garages include free electricity - other storage facilities w/no electricity)
Proposed Apartment Rates
• Apartment Details
Q 3 apartments — each 2 BD, I BA
Two at $1,700 /mo, one at $2,000 /mo
• Proposed rate recommendation:
• Bring two to $2,000 /mo — in one year or two.
• Move all three $2,250 over X periods
• New tenants, if any, to $2,500 /mo