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Home My WebLink AboutSS2 - State of Harbor and 2012-13 Harbor Commission ObjectiveHarbor Commission State of the Harbor and 2012 -13 Harbor Commission Objectives Council Study Session November 13, 2012 2012 -13 Harbor Commissioners Doug West Duncan McIntosh Brad Avery Ralph Rodheim Karen Rhyne David Girling Paul Blank Chair Vice Chair Secretary Commission /Council Pairings Doug West Keith Curry Duncan McIntosh I Steve Rosansky Brad Avery Ralph Rodheim Karen Rhyne David Girling Paul Blank Rush Hill Leslie Daigle Ed Selich Mike Henn Nancy Gardner State of the Harbor 0-4 'InPr and 1.nwPr IH tki . r u. Lower Bay re gang Public Dock Projects Rhine Channel - New Installation 15th Street - Reconfiguration 19th Street - Reconfiguration Fernando Street - Reconfiguration Projects In Process ■ Balboa Island D 0 yr � 4: TRANSIFM DOCK w�3a PRIVATE DOCK E%PANSION PM7AOMRM�� ee. u+w Harbor Commission Objectives 2012 -13 Commission's Two Major Purposes Ensuring the Long Term Welfare of Newport Harbor. Promoting Newport Harbor as a Preferred and Welcoming Destination. Ensuring Long Term Welfare of Newport Harbor Investigate solutions for two long standing obstacles to private dock /channel maintenance dredging: 1) Difficult permitting process 2) Lack of small scale dredgers Commissioners: West, McIntosh & Avery Ensuring Long Term Welfare of Newport Harbor Develop recommendations for greater effectiveness in enforcement of Harbor Codes: A. Speed limit exception for sailing and human powered events. Commissioners: West & Blank B. Rehabilitation or removal of derelict vessels. Commissioners: West & Avery Ensuring Long Term Welfare of Newport Harbor Develop a more effective public outreach program to communicate the Commission's role, purpose and objectives. Commissioners: Girling & Avery Ensuring Long Term Welfare of Newport Harbor Study alternative mooring design solutions. Commissioner. Rodheim & Aver T, Commissions Major Purpose No. 2: Promoting Newport Harbor as a Preferred and Welcoming Destination Harbor as a Preferred and Welcoming Destination Collaborate with Visit Newport Beach to develop Newport Harbor as a more desirable destination. Commissioners: Blank, Girling & West • 93011111OHN NRNWG RASW W 3 Q W Under Consideration • 9301111toof �1 For More Information Doug West Harbor Commission Chair 2012 -13 Chris Miller Harbor Resources Manager OTHER COMMERCIAL HARBOR USES November 131 2012 City Council Meeting Other Uses — Proposed Recommendation Changes from 10-31-12 Workshop Type . Period (October No change following New harborwide appraisals When Lg Commercial Marina rent Shipyards $0.50 /SF workshop p ight after 3 -1 -2018 phase -in reaches. $0.50 /SF, this rent is fully phased -in. $0.50 /SF min rent offset by 1.5 No change following g g New harborwide a appraisals No change to rent in 2013, ITUt Fuel Docks cents /gallon to 100K, then 2 cents/gallon above 100K workshop right after 3 -1 -2018 goesto per gallon charge in 2014. $0 -50 /SF for non - rented When Lg Commercial Marina rent Yacht Clubs $1.02 /SF for non - rented slips slips, guest access, educational uses. New harborwide appraisals phase -in reaches $0.50 /SF land Lg Commercial Index Ratefor right after 3 -1 -2018 $1.68 /SFfor rented slips), this rent is fully phased-in- rented slip 5F Other Uses — Proposed Recommendation Changes from 10-31-12 Workshop Type . .. (October No Change following New harborwide appraisals When Lg Commercial Marina rent Dally Rental Boats $1.02/SF workshop p ight after 3 -1 -2018 Phase -in reaches $1.02 /SF, this rent isfully phased-in- $1.02 /SF for member- rented $1-02/SF for member- rented slips; Marina Index (small or New harborwide appraisals When Lg Commercial Marina rent HC7A5 slips large) for slips rented to right after 3 -1 -2018 phase -in reaches $1.02 /SF, this rent public public is f u I ly phased-in- Guest Slips for $1.02/SF for non - rented slips, No change following New harborwide appraisals When Lg Commercial Marina rent Restaurants Marina Index (small or large) for workshop ri g ht after 3 -1 -2018 phase -in reaches $1.02 /SF, this. rent market - rented slips is fully phased -in. Sportfishing Charters No change following New harborwide appraisals. When Lg Commercial Marina rent (6+ passengers) $1.02JSF workshop ri ht g after 3 -Y -2018 phase-in reaches $1.02/SF, this rent is fully phased-in- Other Uses — Proposed Recommendation Changes from 10-31-12 Workshop rype. ., (October Large Commercial marina New harborwide appraisals When Lg Commercial Marina rent Large Charter Boats index rate $1.02/SF right after 3 -1 -2018 phase -in reaches $1.02 /SF, this rent is fully phased-in- Small Commercial Marina = Small Commercial Marina =a ¢ 15,060 SF of Total 3,066 SF of Total Waterways Waterways Small Commercial New harborwide appraisals No Change in 2013, then steps up to Marinas 75% of Lg Commercial right after 3 -1 -2018 g full indexed rate b March 1, 2018. y y 75% of Large Commercial Marina Marina Index rate (now index rate or 18.5% of gross slip $1.68 /SF) or 16% of gross revenue with $1.45/SF Min Rent (min $126/SF of tidelands used) Large Commercial 18.5% of Gross or $197/SF of 16% of Gross or Index Rate New harborwide appraisals No Change in 2013, then steps up to Marinas tidelands used ($1.68/51' of tidelands used) right after 3 -1 -2418 fully indexed rate by March 1, 2018. What the Appraisals Said Type of Use Yacht Clubs % Rent 17% of GSR Base Rent by SF $ 1.40 % Rent 20% of GSR Base Rent by SF $ 0.55 Notes GSR = Gross Slip Revenue, base rent by SF/Year Fuel Docks N/A $ 1.05 See Notes $ 0.99 Either $0.99/SF /Year or $0.015 1gallon for the first 100,000 gallons then %.02/gallon in excess of 100,000 gallons (whichever is higher) "Short- Term" uses (90 days or less) N/A N/A 4% of GSR $ 6.99 Netzer's term for a variety of uses. Shipyards N/A $ 1.05 4% of GSR $ 0.99 Charters N/A $ 1.05 4% of GSR $ 0.99 Rental Boat Users N/A $ 1.05 4% of GSR $ 0.99 Restaurants /Guest Slips N/A $ 1.05 4°% of GSR $ 0.99 HOAs 17% of GSR $ 1.40 N/A $ 0.99 Important: Examples based on early assumptions of uses as well as square footages of uses — subject to refinement1dialogue. Newport Bay Management — Larson's Current Rent = $2,880 Proposed Rent = $7,314 Commercial Pier Permits I," Bulkhead/Pierhead tines City Tidelands (Bulkhead - Pierhead) City Tidelands (Bayward of Pieehead line) 3,640 sf 4,360 sf 4 <<A Newport Bay Management - La rson's Y, Permit# CP129271)31 . PraPosea 2012 F A Standard Marina Rates: (4,360 sq. ft. x $1.26) = $5,494 Shipyard Rates: 13,640 sq. ft. x $0.50) = $1,820.00 Total = $7,314 ExplorOcean Current Rent = $7,690 Proposed Rent = $23,180* * may be lower if more space dedicated to educational uses 5 a � � y V/ "•J Commercial Pier Permits Butkhead/Pierhead Lines OCity7idefonds (Bulkhead - PierheadJ City Tdelands (Bay word of Pierhead line) 4"L 6 989'sf lr . 2,123 sf 290 1,617 sf 1,3 V� e J t t. 11,903 sf ire- �* r ExplorOcean Permit# CP112D6041 + "_ Piopesea lfll2 r Day -Use Boat Rental: (13,520 sq. ft. x $L02) _ $13,790.40 (2,D45 sq. ft. x $1.02) _ $2,085.9 Total = $15,876.30 Standard Marina Rates: (3,483 sq. ft. x $1.26) _ $4,388 (2,314 sq. ft. x $1.26)=$2,916 Total= $7,304 Total (All Areas) = $23,180 Newport Landing Current Rent = $3,276 Proposed Rent = $8,039.10 41;616 sf 4 MW" f, l . . 16 it Commercial Pier Permits •( -`1 ;'.� '3 euikhead /Pierhead Lines 1 City T4i.d' elands (Bulkhead - Pierhe City Tidelands (Sayward of Pielhead line) �`/ N ew p o r i Land I „ g - s C. VV M Permit# CP1120SD31 � Day -Use Boat Rental: 14,351 sq. ft x $1.02) = $4,438.02 Sportfishing Charter: 11,997 sq. ft x $1.02) = $2,036.94 1347 sq. ft.x $1.02) = $353.94 Total = $2,390.88 Fuel Dock: 1790 sq. ft. x $0.50) = $395.00 11,616 sq. ft x $0.50) = $80 &00 Total = $1,203 Combined Total = $8,039.10 Newport Harbor Yacht Club Current Rent = $15,075 Proposed Rent = $46,181 I 2,306 sf �7 o fj M h/ (� / 1 �(c IN r _e r / C F, t �i Jr 1G PLA � AU Commercial Pier Permits r'..• Bulkhead /Aierhead Lines City Tdelands (Bulkhead - Aferhead) City Tidelands (Bayward of Pierhead line) QNot over Cty Tidelands 1K eI Prim itJ: CP11607201 � Perm MP CPI 1608001 �.; ' l/1' Newport Harbor Yacht Club (1 & 2) Stan= Manna Rates: ( 11, 95Osq .ft.-2,3%sq.ft.)= 14,256sq.ft.x $1.26) = $17,96: 6uert /Instructional Rates: (27,620 sq.ft. x$1.1)2)= $28,172.40 4 Not over Oty Titlelantls: {Base Fee) $26.70 ♦ [(Slip Fee) $2.50 x (SIIp fium) 911= $".7D = • Area = 15,090 sq.ft. Total= $46,181 VMA Mariner's Mile Current Rent = $8,636 Proposed Rent = $22,665 Commercial Pier Perrin is eulkhead /Pierhead lines City Tidelands (Bulkhead - Pierhead) City Tidelands (Bayward of Pierhead line) ONot over City Tidelands 4,100 sf . s �,. 73,2]0 sf ,/' 6,970 sf 1 820 sf >r 7 i 142, 0 sf VMA Mariner's Mile (1 & 2) Issia assail Wig /►A ': � ¢q �1 PefmitNCP12924311 2 Perm tp CP32925951 DroDOSed 2W 2 Charter Vessel Rate (20,360sq.f.x $1.02) = $20,767 ihipyard Rates'. (3,63D sq. ft x $D.SD) = $1,815.00 qot wer aty Tidelands, 7 x (Base Fee) $26.70 ♦ [(S[ip Fee( $2.50 x (Slip Count) 12]1 $03AD= Area = 6,970 sq.ft.. 7,37D sq. ft. =14,340 sq. ft. total = $22,665 Rents, Appraisals, Pricing About Gas Dock Rents Netzer proposed: o $0.99/SF base rent against $0.015 /gallon <1 OOK, then $0.02 /gallon >I OOK. Rasmuson proposed: $1.05 /SF base rent w /no per gallon pricing Committee proposes: $0.50 /SF base rent against $0.015 /gallon < 1 OOK, then $0.02 /gallon >I OOK. About Gas Dock Rents (Netter) FUEL DOCK RENTAL SURVEY JULY/AUGUST 2012 Upland Lease Base Rent Percent Rent Data No. Lease Tideland Use Type Total Rent or Location Date (Sq.Ft.) S /Sq.Ft. S /gallon 1/ High Seas Fuel Dock 1995 U: 13,800 Fuel Dock Base + $0.23 D: $0.0075 /Gal. San Diego Adj. 2005 T: 33,075 & Sales Fixed $1.49 G: $0.04 /Gal. (combined) 2/ Pearson Marine Fuel 1994 U: 4,000 Fuel Dock Base + $0.623 D: $0.0075/Gal. San Diego Adj. 2004 T: 32,900 Fixed $1.21 G:$0.04 /Gal. (combined) 3/ Oceanside Harbor Fuel 1989 U: 5,658 Fuel Dock Base + Not D: 3.0% Dock Adj. 2005 T: N.Av. + Mini Percent Disclosed G: 3.0% Oceanside Mart 4/ Dana Point Fuel Dock 1995 U: 22,000 Fuel Dock Base + $1.77 D: 6.0 %' Dana Point Adj. 2008 T: 18,000 Percent $4.28 G: 6.0 %' (combined) 5/ McComvx 2003 U: N. Av. Fuel Dock Base + $28.500 D: $0.04 /Gal. Santa Barbara T: 1.344 Fixed N.Av. G: $0.04 /Gal. 6/ Del Rey Fuels 2006 U: 14,769 Fuel Dock Base + $2.03 6.0% Marina del Rey T: 52,989 Percent N.Av. (all fuels) (combined) 7/ Mariner's Point 2010 T: 7,500 Fuel Dock Base+ $119 $0.015/Gal. to Huntington Harbor Fixed N.Av. 100,000 Gals. $0.02 /Gal. over 100,000 Gals. Gas Dock Pricing Location Diego Gasoline $ 5.15 Deisel N/A San Diego N/A $5.45 - $4.80 Oceanside Harbor $ 5.29 $ 4.99 Dana Point $ 4.97 $ 4.59 San Pedro (Jankovich) $ 4.46 $ 3.90 Island Marine Fuel (NH) $ 4.58 $ 3.88 Hill's Boat Service (NH) $ 4.64 $ 3.91 PetroSea (NH) $4.19 - $4.29 $3.69 - $3.82 Alamitos Bay Marina $ 4.69 $ 4.46 [Mariner's Point (HH) $ 5.60 $ 4.45 ❑ Generally pricing reflects today's date (1 1 /13/12), with some exceptions. ❑ Data gathered by phone and via marinefuel.com ❑ Range indicates known volume discounting. Others may have volume discounting as well, but securing that information can be difficult. ❑ Gasoline grade is generally Premium, but can be 87 grade. Summary L Large Commercial Marina rent: o Go from 18.5% to 16.0% of Gross Slip Revenue o Flat in 2013, then phase -in to 2018 o New Harborwide appraisal in March 2018 for 2019's rental rates & beyond. c, Recommended actions today would change 10/23/12 Council resolutions. F Other rental rates as proposed today, phase -ins as proposed today. For Large Commercial Marinas Rent and Phase -In -Oct 23, 2012 Italicized text denotes assumptions. Assumed scenario for Target Marina Index rate 2015 -2020 suggests Note: increases some years, decreases others. Example 2012 $ 0.36 2013 2014 $ 0.36 $ 0.36 2015 $ 0.63 2016 $ 0.90 $ 2017 1.19 $ .. May 2018 1.46 $ Work 2019 1.78 $ 2020 2.17 2021 Assumed Index Rate Previous Year's Rent Difference (A) Periods Remaining (B) Increase for Year (A /B) No change during this year No Change duringthis year $ 1.97 $ 2.01 $ 2.03 $ 2.01 $ 2.11 $ 2.17 $ 2.22 $ 0.36 $ 0.63 $ 0.90 $ 1.19 $ 1.46 $ 1.78 N /A - At Full Index Rate $ 1.61 $ 1.38 $ 1.12 $ 0.82 $ 0.65 $ 0.39 6 5 4 3 2 1 $ 0.27 $ 0.28 $ 0.28 $ 0.27 $ 0.32 $ 0.39 Italicized text denotes assumptions. Assumed scenario for Target Marina Index rate 2015 -2020 suggests Note: increases some years, decreases others. Rent and Phase -In —Nov 131 2012 $ 0.361 $ 0.361$ 0.561$ 0.81 1$ 1.091$ 1.391$ 1.721$ 1.68 Assumed Index Rate $ 1.681 $ 1.711 $ 1.75 1 $ Previous Year's Rent $ $ 0.36 $ 0.56 $ Difference (A) No change in 2013 $ 1.35 $ 1.19 $ Increase for Year (A /B) Harborwide Appraisal $ 0.20 $ 0.25 $ 1.77 $ 1.72 $ 1.72 $ 1.68 0.81 $ 1.09 $ 1.39 $ 1.72 0.96 $ 0.63 $ 0.33 $ (0.04) 0.28 $ 0.30 $ 0.33 $ (0.04) Harborwide Appraisal after 3 -1 -2018 The Marina Index suggests that 16°% of Gross in 2012 = $1.68/SF. This example assumes the FMV appraisal in 2018 = 17% of Gross Slip Revenue (Index value today Notes: = $1.74 /SF). Actual answer effective 3 -1 -19 will be based on the appraisal process. This example illustrates that the Assumed Index Rate can change every year - up or down. Comparing Alternatives r r r r+ r r r $ 0.36 $ 0.36 $ 0.63 $ 0.90 $ 1.19 $ 1.46 $ 1.78 22 7changeinchangein New 0.36 $ 0..56 $ 0.81 $ 1.09 $ 1.39 $ 1.72 Appraisal in Rate(NAR) a + t $ $ 0.10 $ 0.18 $ 0.19 $ 0.10 $ 0.16 Unknown Unknown Unknown Tidelands Management Committee ( "TMC ") • Formed March 2011 • Council Members Henn (Chair), Gardner and Selich • Citizens Advisory Committee • Don Lawrenz • Linda Beimfohr • Jeff Herdman • John Corrough • Jerry King • Winn Fuller ea Terry Hartman Doug West • Monthly meetings well attended by the public TMC Purpose • Establish long term visions for major tidelands components • Create and adopt a "Tidelands Capital Plan" • Research, consider and recommend appropriate governance structures How We Got Here... • TMC mainly reviewed: • Regular updates on major harbor issues /plans /projects; and • The Tidelands Capital Plan. • Tidelands Capital Plan • Began as huge "catch -all" list of every conceivable harbor project • Slowly and methodically narrowed in scope each month • Separate CAP meetings devoted to refining the plan • Approved final Plan in August 2012 and recommended for Council consideration tonight Est. Project Start FY 2012 CAPital or MAINTenanj�� CAP 5 YEAR TIDELANDS Funding Tidelands Project CAP Fund Rhine C hannel Dredging 4,235,829 Source Tidelands MAINTFund HAMP GOAL 3 Harbor & Bay Element GOAL 8,11,13 2012 Funding Totals $ 4,235,829 2013 CAP Lower Bay Dredging Phase 2,500,000 1,2,3 8,11,13 2013 CAP Lower Bay Dredging Phase II 2,300,000 1,2,3 8,11,13 2013 MAINT Balboa Island Bulkhead Assessment Year 1 500,000 2 1,6,9,13 2013 MAINT Balboa Marina - New Public Dock 125,000 1,2 1,2,5,6 2013 MAINT Balboa Yacht Basin (BYB) Facility Improvements 74,585 1,2 1,2,3,4,6 2013 MAINT Bay Beach Sand Management 300,000 1,3 1,5,6,9 2013 MAINT BYB Mooring Support Service Improvements 25,000 1,2 1,5,6 2013 MAINT EelgrassSurvey - Lower Harbor Shoreline 50,000 2,3 1,2,5,8,9 2013 MAINT Lower Bay Dredging 100,000 1,2 8,11,13 2013 MAINT Mooring Field Realignment 25,000 1,2 1,2,5,6 2013 MAINT Tidegate Retrofit and Upgrades 700,000 2 8 2013 MAINT Vessel Waste Pumpout Station Replacement 20,000 1,2,3 1,2,6,8 2013 CAP Marina Park (Marina Only) 10,000,000 1,2 1,2,4,5,6,9,13 2013 Funding Totals $ 14,800,000 $ 1,919,585 2014 MAINT RGP -54 Permit 400,000 1 1,2,6,9,13 2014 MAINT Balboa Island Bulkhead Assessment Year 2 400,000 2 1,6,9,13 2014 MAINT 2014 Tidelands Maintenance Projects 737,500 2014 Funding Totals $ 1,537,500 2015 CAP Semeniuk Slough Dredging 1,500,000 3 1 2,8 2015 MAINT Balboa Island Bulkhead Assessment Year 3 400,000 2 1,6,9,13 2015 MAINT 2015 Tidelands Maintenance Projects 1,137,500 2015 Funding Totals $ 1,500,000 $ 1,537,500 2016 MAINT 2016 Tidelands Maintenance Projects 1,537,500 2016 Funding Totals $ 1,537,500 2017 CAP Grand Canal Dredging 500,000 1,2 1,2,5,6,9,13 2017 MAINT 2017 Tidelands Maintenance Projects 1,537,500 2017 Funding Totals $ 500,000 $ 1,537,500 FIVE YEAR FUNDING TOTALI 21,035,829 1 $ 8,069,585 2017 CAP Balboa Island Seawall Replacement TBD 1,2 1,6,9,13 2020 CAP Future Lower Bay Dredging and Ongoing Maintenance TBD 1,2 8,11,13 2020 CAP Lower Castaways Development TBD 1 112,315,619 2021 CAP West Newport Channel Dredging TBD 1,2,3 8,11,13 2030 CAP Future Upper Bay Dredging TBD 2,3 7,8 For More Information • Chris Miller Harbor Resources Manager (949) 644 -3043 cmiller(LnewUortbeachca. gov e • Shannon Levin Harbor Resources Supervisor (949) 644 -3041 shannon( :)ortbeachca.gov Council Task Force on Committees Discussion of Proposed Approaches for Reorganizing the Harbor Commission and the Coastal Bay Water Quality Committee Council Study Session November 13, 2012 Council Task Force on Comm Formed on September z5, zo1z • Purpose: Review Committees and suggest changes Review "housekeeping" issues, including: i. Committee terms 2. Committee member terms 3. Chairperson appointments 4. Regularity of meeting schedules 5. Meeting locations 6. Public input process 7. And more... Proposed Changes for Harbor Commiss • Change Harbor Commission to "Harbor Tideland4 Management Committee" • Mission: Advise Council on matters affecting th tidelands of Newport Harbor Membership: Seven members appointed by Council , with two Council Members Term: 4 years, z consecutive terms max. ® Subject to Brown Act. Harbor Tidelands Management Committee Purpose and Responsibility Advise Council on Tidelands Capital Plan. Advise Council on all matters pertaining to use, control, operation etc... of vessels. Approve, conditionally approve or disapprove harbor application permits. Advise Planning Commission and Council on land use development applications. Recommend adoption of regulations and programs. Serve as a appellate and reviewing body. Proposed Changes for Coastal Bay Watei Quality Committee Change CBWQC to "Water Quality /Coastal Management Committee" Mission: Improve and preserve the Newport Beai coastline and Newport Bay as a resource for recreational use and as a healthy habitat. Membership: Seven members appointed by Council , with two Council Members Term: 4 years, z consecutive terms max. Subject to Brown Act. Water Quality /Coastal Management Committee Purpose and Responsibility Advise Council on policies, projects and programs that support /strengthen existing regulations to protect water qualit the bay and ocean. Advise Council on policies, projects and programs that improve water quality in the bay and ocean. Advise the Council on implementation of the Tidelands Capital F in the following areas: Sea level rise as it affects ocean beaches Ocean beach sand replenishment Other capital projects affecting the ocean and bay not covered by t Harbor Tidelands Management Committee Advise Council on policies, programs and projects that educate watershed's population about the value of the bay and ocean. For More InformatiIs on Chris Miller Harbor Resources Manager (949) 644 -3043 cmierpnewportbeachca. ov