HomeMy WebLinkAbout2015-10 - Adjusting The Rental Calculation And Approving A Revised Model Permit Template For Residential Piers Located Upon TidelandsRESOLUTION NO. 2015 -10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADJUSTING THE
RENTAL CALCULATION AND APPROVING A REVISED
MODEL PERMIT TEMPLATE FOR RESIDENTIAL PIERS
LOCATED UPON TIDELANDS
WHEREAS, pursuant to the 1978 Beacon Bay Bill, as amended, ( "Beacon Bay
Bill ") the City of Newport Beach ( "City ") acts on behalf of the State of California as the
trustee of tidelands located within the City's limits, including Newport Harbor;
WHEREAS, the Beacon Bay Bill and Chapter 17.60 of the Newport Beach
Municipal Code ( "NBMC ") allow the City to authorize third parties to construct/maintain
residential piers upon tidelands;
WHEREAS, the Beacon Bay Bill, California Constitution Article 16, Section 6,
NBMC Section 17.60.060(D) and City Council Policy F -7(D) require the City to receive
fair market value rent from third parties using the tidelands;
WHEREAS, the City Council has the exclusive discretion to determine fair
market value rent based, in part, upon the findings of a City - selected appraiser;
WHEREAS, an appraisal report by Rasmuson Appraisal Services, and an
appraisal report by Netzer & Associates, were prepared and delivered to the City and
have been reviewed and considered by the City Council, which reports are part of the
record for this matter;
WHEREAS, on November 26, 2013, the City Council adopted Resolution
No. 2013 -88, approving a model residential pier permit for residential piers located upon
tidelands and establishing fair market value rent;
WHEREAS, on January 27, 2015, the City Council considered, at its regularly
scheduled study session, the current status of the City's tidelands regulations and rents
for moorings, commercial piers and residential piers and directed staff to bring back
certain amendments contained in this resolution to improve the tidelands rent process;
WHEREAS, the City Council has considered all documents and comments in the
record in connection with this resolution; and
WHEREAS, all previous resolutions, or portions thereof, and actions regarding
the fair market value rent for residential piers and the model pier permit template for
residential piers that are in conflict with the provisions in this resolution are hereby
repealed.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The Recitals provided above are true and correct and are
incorporated into the substantive portion of this resolution.
Section 2: The City Council finds that the rent provisions contained in the
attached Adjusted Residential Pier Tidelands Rent Calculations, which is incorporated
by reference, provide for the charging of fair market value rent and that the rental rate
(and adjustments) in the attachment constitute fair market value rent for residential piers
located upon tidelands, which findings are made by the City Council in its exclusive
discretion but are based, in part, on the information in the appraisals of its City - selected
appraisers and, in addition, on other testimony and documents in the record for this
matter. The City Council further finds and determines the rent for residential piers
located upon tidelands, operating under a permit, shall be set in accordance with the
attached Adjusted Residential Pier Tidelands Rent Calculations. The rent established in
this resolution shall only be applicable to permittees with a residential pier located over
tidelands.
Section 3: The City Council adopts the revised model residential pier tidelands
permit attached to this resolution, and incorporated by this reference, for use by
residential pier tidelands users. The City Council finds that the residential tidelands
users subject to the attached model permit are not subject to the open bid process
found in City Council Policy F -7 because redevelopment/reuse of the tidelands by a
third party would require excessive time, resources and costs which would outweigh
other financial benefits.
Section 4: The City Council finds the adjustment of residential pier rent and
the approval of a revised model permit template for residential piers located upon
tidelands 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 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. Alternatively, the City Council finds the
adjustment of residential pier rent and the approval of a revised model permit template
for residential piers located upon tidelands is entitled to a Class 1 Categorical
Exemption pursuant to CEQA Regulation Section 15301 because the residential pier
rent and permit contemplate the continued use of existing facilities, with no expansion of
the proposed use. Further, the City Council finds the adjustment of residential pier rent
for piers located upon tidelands is entitled to a Statutory Exemption pursuant to CEQA
Regulation Section 15273(a)(1) because the fair market value rent established by the
City Council will be used to meet operating expenses within the tidelands. Lastly, the
City Council finds the adjustment of residential pier rent and the approval of a revised
model permit template for residential piers located upon tidelands is not a project under
CEQA Regulation Section 15061(b)(3) because it has no potential for causing a
significant effect on the environment.
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses and phrases be declared invalid or
unconstitutional.
Section 6: This resolution shall take effect immediately upon its adoption by
the City Council and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 10`h day of February, 2015.
Edward D. Selich,
Mavor
ATTEST:
Ai�i '- 444- --
Leilani 1. Brown,
City Clerk
Attachments: (1) Adjusted Residential Pier Tidelands Rent Calculations
(2) Revised Model Permit Template for Residential Piers
Adiusted Residential Pier Tidelands Rent Calculations
Residential Pier Rent
(1) Residential Pier Permittees shall pay as Rent Fifty Cents ($0.50) per square
foot of the Premises, as phased in and adjusted pursuant to this resolution.
Two (2) examples of the Rent calculation are provided below for illustrative
purposes:
Proposed - 215 VIA LIDO SOLID
Total Permit Area = 992 sq. ft.
2017 Rental Fee= ;$496
($0.50 /sq. ft.)
Proposed - 417 EDGEWATER PL
Total Permit Area = 637 sq. ft.
2017 Rental Fee = $318.95
($0.50 /sq. ft.)
(2) Permittees that desire to rent/lease their Residential Pier shall notify the
City in writing. Permittees that rent/lease their Residential Pier, either in
whole or in part, shall pay the Rent applicable to Small Commercial
Marinas as established in Resolution No. 2012 -98, or any successor
resolution, for the Premises.
(3) To the extent a Residential Pier is shared by two (2) or more Permittees,
the Rent shall be apportioned equally among the Permittees (i.e., if a
Residential Pier is shared by two (2) Permittees, half (1/2) of the Rent
shall be billed to one (1) Permittee and the other half (1/2) of the Rent
shall be billed to the other Permittee). The Permittees shall be jointly and
severally liable for the Rent. Each Permittee shall receive a permit from
the City indicating the percentage of the Premises apportioned to the
Permittee.
Periodic Adjustments of Rent and Phase In
Rent for Residential Piers provided by this resolution, shall be phased -in and
adjusted as follows in the table below. In the table, "A" represents the calculated rent
based on the known square footage under permit in 2012, multiplied by Fifty Cents a
square foot ($0.50 /SF):
Fi�Cents_($0.50) Rent Phase -in Table and Adiustment
A = square footage x $0.50
Rent for Residential Piers of one hundred ninety square feet (190') or less shall pay the
fully phased in Rent immediately and be subject to CPI adjustment beginning in 2018.
During the phase -in period there shall be no adjustment by the U.S. Department of
Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers
( "CPI "), Los Angeles- Riverside - Orange County region or otherwise.
Beginning in 2018 and indefinitely beyond, the rental rate shall be adjusted by the
change in the CPI or two percent (2 %) whichever is less. The City may conduct a new
appraisal of residential pier rental rates in Newport Harbor after March 1, 2018, and
every fifth (5th) year thereafter, as part of the appraisal required by Resolution No. 2012-
96, or any successor resolution. The City Council, at its discretion, may use the
appraisal to adjust Rent for the following year (Le., the Rent determined by the appraisal
following March 1, 2018 shall be effective March 1, 2019). If the City Council chooses
not to adjust Rent across the Class of Permit, it shall use the appraisal's results to
adjust the Rent of only those individual Permits that transfer ownership following each
appraisal. Once adjusted, these transferred Permits shall be adjusted by the change in
CPI or two percent (2 %), whichever is less, until such time that a new appraisal applies
to this Permit or Class of Permit.
$100
([A- $100]/5)
([A- $100]/5)
([A- $100]/5)
([A- $100]/5)
Fully Phased -In
+$100
+ 2013 Rent
+ 2014 Rent
+ 2015 Rent
Rent (A)
Example #1:
$100
$194
$288
$382
$476
$570
1,139 SF
Example #2:
$100
$223
$345
$468
$590
$713
1,426 SF
Example #3:
$100
$428
$756
$1,084
$1,412
$1,740
3,480 SF
A = square footage x $0.50
Rent for Residential Piers of one hundred ninety square feet (190') or less shall pay the
fully phased in Rent immediately and be subject to CPI adjustment beginning in 2018.
During the phase -in period there shall be no adjustment by the U.S. Department of
Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers
( "CPI "), Los Angeles- Riverside - Orange County region or otherwise.
Beginning in 2018 and indefinitely beyond, the rental rate shall be adjusted by the
change in the CPI or two percent (2 %) whichever is less. The City may conduct a new
appraisal of residential pier rental rates in Newport Harbor after March 1, 2018, and
every fifth (5th) year thereafter, as part of the appraisal required by Resolution No. 2012-
96, or any successor resolution. The City Council, at its discretion, may use the
appraisal to adjust Rent for the following year (Le., the Rent determined by the appraisal
following March 1, 2018 shall be effective March 1, 2019). If the City Council chooses
not to adjust Rent across the Class of Permit, it shall use the appraisal's results to
adjust the Rent of only those individual Permits that transfer ownership following each
appraisal. Once adjusted, these transferred Permits shall be adjusted by the change in
CPI or two percent (2 %), whichever is less, until such time that a new appraisal applies
to this Permit or Class of Permit.
Definitions
Unless otherwise provided, the terms provided in the Newport Beach Municipal
Code ( "NBMC ") shall apply to this resolution. The singular of any term also includes the
plural.
(1) Class of Permit means all Permits for Residential Piers in Newport Harbor.
(2) Permit refers to a permit issued by the City authorizing a Residential Pier
upon the Premises.
(3) Permittee means a person who has a permit from the City to
construct/maintain a Residential Pier.
(4) Premises means those Tidelands which are subject to the applicable permit
and are more particularly described and depicted in the applicable permit,
excluding any Private Waterways and improvements owned by the Permittee
or Tidelands subject to recorded easements for pier and slip purposes. The
Premises shall include only the portion of the Tidelands located under a
Residential Pier and shall exclude the interior U -Shape of a slip.
(5) Private Waterways means privately owned submerged lands or submerged
lands subject to recorded easements for pier and slip purposes.
(6) Rent means the annual fair market rent charged on a square footage basis
for the use of the Premises.
(7) Residential Pier means a pier used by the owner(s), occupant(s), guest(s) or
lessee(s) of the abutting residentially zoned upland property. A Residential
Pier shall include the entire pier system, including, but not limited to, the float,
gangway, gangway landing, pier, and pier platform. The Residential Pier
shall specifically exclude the interior U -Shape of a slip.
(8) Tidelands mean certain tidelands and submerged land (whether filled or
unfilled), located in the City of Newport Beach, County of Orange, State of
California, granted to the City of Newport Beach, as trustee, by the State of
California, pursuant to the Tidelands Grant.
(9) Tidelands Grant means uncodified legislation related to the State of
California's grant of certain rights in the Tidelands to the City of Newport
Beach, including, without limitation, the Beacon Bay Bill (Chapter 74 of the
Statutes of 1978, as amended [citations omitted]).
ATTACHMENT B
Residential Tidelands Pier Permit
(1) Permittee: This Permit is issued on to
( "Permittee ") to construct/maintain a residential pier located upon City of Newport Beach ( "City')
tidelands, as more particularly described and depicted in Attachment 1 ( "Premises "), which is
attached hereto and incorporated by reference. By acceptance of this Permit, the Permittee
agrees to be bound by the terms contained in this Permit.
(2) Term: This Permit shall be valid for a period of _ year(s) beginning on March 1,
20 and expiring on February _, 20_, unless terminated earlier as provided herein. A new
permit may be automatically issued upon expiration, provided rent is paid and the pier is
maintained. The City's longstanding policy is to re -issue residential permits to the upland
property owner, who also owns the physical dock associated with the Premises.
(3) Rent: Rent shall be calculated pursuant to Resolution No. 2015 -_ or any
successor /amended resolution. Resolution No. 2015 -_ and any successor /amended
resolution are automatically incorporated by reference into this Permit, without any further action
by the parties, when adopted by the Newport Beach City Council.
(A) Payment of Rent: All rent shall be annually prorated and billed through
Permittee's Municipal Services Statement ( "MSS "). All rent shall be due and
payable pursuant to the terms of Permittee's MSS.
(B) Late Charges: A ten percent (10 %) late charge shall be added to all payments
due but not received by City by the due date.
(C) Third -Party Use: This Permit o allows / ❑ does not allow (check one) the
Permittee to rent/lease the Premises to a third -party.
(4) Utilities and Taxes: The Permittee is solely responsible for obtaining all utilities and
paying all taxes (including possessory interest tax, if applicable), fees and assessments for the
Premises or improvements located thereon.
(5) Maintenance: The Permittee assumes full responsibility for operation and maintenance
and repair of the Premises and associated improvements throughout the term of this Permit at
its sole cost, and without expense to the City.
(6) Transfer /Assignment: This Permit may be transferred or assigned by the Permittee as
provided in the Newport Beach Municipal Code.
(7) Property Right Protection: The residential pier maintained under this Permit is private
property and shall be protected to the maximum extent under the law from unlawful seizure.
(8) Settlement Agreement: This Permit is in full compliance with the February 21, 2014
Settlement Agreement entered into between the City and the Newport Beach Dock Owners
Association.
ATTACHMENT B
Attachment 1
Description & Depiction of Premises
Premise's Address (or description of general location):
Premise's Square Footage:
Premise's Depiction:
IN
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
1, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2015 -10 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 10`" day of February, 2015, and that the
same was so passed and adopted by the following vote, to wit:
AYES: Council Member Peotter, Council Member Petros, Council Member Muldoon,
Mayor Pro Tern Dixon
NAYS: Council Member Curry
RECUSED: Council Member Duffield, Mayor Selich
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 11`" day of February, 2015.
1� ✓
City Clerk �
Newport Beach, California
(Seal)