HomeMy WebLinkAbout13 - Funding for Marina Management at Marina Park13-1
NEWPORT BEACH
City Council Staff Report
COUNCIL STAFF REPORT
CITY OF
January 26, 2016
Agenda Item No. 13
ABSTRACT:
Marina Park includes a new visitor-friendly marina consisting of twenty-three (23) visitor-
serving slips; vessel-serving amenities for guest use including Wi-Fi, laundry, showers
and restroom, water and electrical, sanitary sewer pumpouts, on-site restaurant, and
parking; a dinghy launch; and storage racks to serve City mooring permittees. At its
October 27, 2015 meeting, the City Council approved a Professional Services
Agreement with Basin Marine, Inc. to operate the marina. A Budget Amendment is
needed to provide funding for eight (8) months in FY 2015-16 at $15,300 per month.
RECOMMENDATION:
Approve Budget Amendment No. 16BA-027 unappropriating $45,000 in General Funds
from Public Works Administration Account No. 01080005-811008 and returning it to the
fund balance; and appropriating $122,400 in Tidelands Funds to Public Works Harbor
Resources Account No. 10080802-811044 for marina management at Marina Park.
FUNDING REQUIREMENTS:
The Budget Amendment records and appropriates $122,400 in increased expenditure
appropriations from Tidelands Fund unappropriated fund balance; and unappropriates
$45,000 in General Funds from Public Works Administration Account No. 01080005-
811008, returning it to the General Fund balance. Contract costs will be expensed to
Marina Park Marina Management Account No. 10080802-811044 in the Public Works
Department - Harbor Resources Division operating budget.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY:Jamie Copeland, Finance / Administrative Manager
PHONE:949-644-3335
TITLE:Funding for Marina Management at Marina Park
Funding for Marina Management at Marina Park
January 26, 2016
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DISCUSSION:
The twenty-three (23) visitor slips at Marina Park are the first of its kind in Newport
Harbor, meeting the demand for visitor accommodations and public access. As part of
the start-up operation of the new marina, and not having a history or past experience of
this new visitor severing facility, it was determined that management of the new marina
at Marina Park should be performed through the use of a contractual management
services firm for supervision, operation and maintenance rather than by full or part-time
City staff. At its October 27, 2015 meeting, the City Council approved a two-year
contract with Basin Marine to provide this service beginning November 2015 at a cost of
$15,300 per month.
As a follow-up to this contract award action, necessary funding needs to be added to
the current operations & maintenance budget to cover the cost of the contract.
The agreement term for two (2) calendar years spans three (3) fiscal years as follows:
Account Description FY 15-16 FY16-17 FY17-18
Harbor Resources Division -- Marina Management
Account No. 10080802-811044 $122,400 $183,600 $61,200
Rental of marina facilities will produce revenue which will be posted to the Tidelands
Fund. This revenue will be used to offset marina management costs and fund other
projects in the harbor. Harbor Resources staff estimates revenue to be between
$250,000 (half-occupancy) and $500,000 (full-occupancy) annually.
The current budget includes $45,000 in General Funds for part time staffing to assist
with marina management duties for six months of the current fiscal year. With the new
scope of services to be performed and marina rental revenue to be deposited in the
Tidelands Fund, staff recommends returning the partial General Fund appropriation to
its fund balance and appropriating $122,400 from the Tidelands Fund to cover costs for
eight months of fiscal year 2015-16. The Harbor Resources budget will be adjusted in
future fiscal years to accommodate the terms of the service agreement.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find 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
Funding for Marina Management at Marina Park
January 26, 2016
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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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Staff Report Approving Contract with Basin Marine for Marina
Management at Marina Park dated October 27, 2015
Attachment B – Budget Amendment