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HomeMy WebLinkAbout00 - Non-Agenda Items - CorrespondenceReceived After Agenda Printed July 25t", 2022 For Public Comment Non -Agenda 7/26/22 July 26, 2022 Dear Mayor Muldoon and Council Members, Non -Agenda Item As a regional director for the Recreational Boaters of California and a Newport Beach resident, I urge the City to suspend the proposed August 1st fee increase at the Balboa Yacht Basin. The proposed fee increase combined with changes in methodology will increase many slip fees by well over 20%. This fee increase will cause hardship on many of the recreational boaters at the marina. There has been no transparent public review of this fee increase. The stakeholders have been asking for a public review since May of this year only to have all requests dismissed. A few days ago on July 21st,(at the 11t" hour) stakeholders were provided the attached spreadsheet as the only support for this significant fee increase. Please note that the spreadsheet does not have any calculations, contains significant gaps in data and contains other significant flaws. Perhaps the biggest flaw is the fact that it includes the Dunes Marina, which is a significant statistical outlier (in terms of rates charged) and does not appear to qualify as a low -to -moderate fee marina as required by resolution 2010-134. The Dunes has far superior amenities for their marina tenants use (pool, spa, gym, kitchen, TV lounge etc. See 2nd attachment). It is not a comparable marina. It is a luxury marina while the Balboa Yacht Basin is a bare bones municipal marina. The City has no requirement to charge full fair market rents at the Balboa Yacht Basin. The "fair market" language in the Beacon Bay Bill strictly applies to the filled tidelands (residential lots) of Beacon Bay. It does not apply to the other tidelands of Newport Harbor. Please note that in our Local Coastal Program the city made a commitment to provide affordable berthing (3.3.2-1) in Newport. Additionally, City Policy F-7 (E) absolutely allows the city to charge low cost and affordable rates for recreational purposes such as boating in our Harbor. The final attachment is a page from resolution 2010-134 whereby the City was reasonable in 2010 (when the last significant fee increase was implemented). In 2010 the fee increase was phased in over 3 years to allow the tenants to make the necessary adjustments to their personal budgets to soften the impact of the fee Increase. I respectfully request the city to simply suspend this fee increase to allow for a collaborative and transparent review of the data/methodology and for the city to consider a phase in for any significant fee increase. Sincerely, Wade Womack Recreational Boaters of California Balboa Yacht Basin Rent Survey Provided by L. Wooding, City of Newport, Real Property Administrator A B C D E F G H Newport 28th Street Lida Yacht Newport Bayside BYB Slip Sites Survey Slip Dunes Marina Marina Anchorage Port Calypso Marina (formerly Village Length 101 N. 2600 151 Shipyard Z633 W. PCH Swales} 2888 Marina Bayside Dr. Newport Blvd. Way Bayshare Dr. 300 E. PCH Zo'-29' Prtce per foot per month BYB Slip 20' 20' $40.50 $32.D0 $32.00 $30.68 $25.00 $27.00 21' $40.50 $32.00 $32.00 $30.68 $27.00 22' $40.50 $32.00 $32.00 $30.68 $27.00 23' $40.50 $32.00 $32.00 $27.00 24' $40.50 $32.00 $32,00 $27.00 BYB Slip 25' 25' $45.50 $32.00 $32.00 $31.SG $25.00 26' $45.50 $32.00 $32.00 $31.50 $25.00 27' $45.50 $32.00 $32.00 $31.50 $25.00 28' 545.50 $32.00 $32.00 $31.50 $25.00 29' $45.50 $32.00 $32.00 $31.50 $25.00 3D'-39' 30' $45.D0 $35.00 $37.00 $31.50 $Z1.67 $29.00 BYB Slip 31' 31' $4'S.00 $35.00 $37.00 $29.00 BYB Slip 32' 32' $50.DO $35.D0 $37.00 $29.00 33' $S0.00 535.00 537.00 531.00 BYB Slip 34' 34' $59.DO $35.D0 $37.00 $35.50 $31.D0 BYB Slip 35' 35' $59.DO $35.DD $45.00 $35.50 $31.00 36' $59.00 $35.00 $45,00 $31.00 BYB Slip 37' 37' $59.00 $35.00 W-00 $31.00 39' $59A0 $35.00 $45,00 531.00 39' $59.o0 $35.D0 $45.00 $31.DD 4D'-49' .11111 Balboa Yacht Basin advocates have been calling for a public review of the rent increase since May of this year. All requests have been dismissed. 1. Here is an image of the first few rows of the survey information that was provided only a few days ago (7/24/22). This is the only information we have received to justify the significant fee increases at the Balboa Yacht Basin. There are not calculations or proposed rates? 2. Clearly, the Dunes (column with red lines) is out of line with the other marinas. Per the existing resolution the Dunes should be tossed out of the survey as it is not low/moderate cost. 3. The red circles indicate gaps in the data. This is an incomplete survey and should not be used to justify excessive fee increases. You and your family will enjoy a world of recreation at Newport Dunes Resort and Marina, with its mite of golden Amenitiesbeaches, waterfront walkways, bicycle trails, watersports rentals and, schedule of activities, pool and spa, fitness Slipscenter, playgrounds and more. 0n-Site Conveniences include The Back Bay Bistro waterfront restaurant, The Market F Dry Storage Place convenience and grocery store. Rates Guest Slips Launch Service Map Pool and Spa Newport„ Relax in our on -site pool and spa: located adjacent to the N-larina officeTestimonials Lounge chairs and umbrellas are Contactincluded. Video Tour Pay Online �F -The Dunes is not a comparable marina. It has far superior amenities: Pool/spa, workout room, kitchen, TV lounge etc. -This is why the Dunes is far more expensive than the other marinas used in the survey. -Resolution 2010-134 calls for the use of comparable marinas in any survey and encourages staff to substitute marinas in this situation. Our City Local Coastal Program calls for the protection of affordable berthing in Newport Harbor Policies: 3.3.2.1. Provide a variety of berthin o ortunities reflecting State and regional demand for slip size an affordability hroughout Newport Harbor. 3.3.2.2. Protect, and where feasible, enhance and expand marinas and dry boat storage facilities. Local Coastal Program Coastal Land Use Plan 3-35 City Policy F-7 (E) Allows the city to charge less than fair market rates to promote affordable boating in Newport. E. However, in some circur tance the City may determine that use of a property by the public fir recreational, charitable or ether nonprofit purpose is preferred and has considerable public support, in which case the City may determine that non- financial benefits justify not maximizing revenue from such property. In such circumstances, the Cif has a vested interest in ensuring that the lessee of such property operates the activities conducW on or from the proper in the manner that has been represented to the City throughout the duration of any lease or contract with the City, 0 a« Resolution 2010-134 has a 3-year phase in phase in for the significant fee increase im 2010. 0 Slip or Side Tie:Rate Current BYB Column A Column is Column is 96 of 2011 2012 21)1-3 Length NH Index Rate Adjustrner�t Adjustment Adjustment 30 - 39' 84% 8.9% 951Y4 100% 40 - 49' 64% 7r,% 38 100% .82% � -00% 50 Y 7 '3� 91°a 60 - 75' 8% 72% 96% 100% 1; (for ex&mpr'o, in 2011. a 40' B YB world beset at 76' of the avare r Nowpoil Harbor' Alar+r?a Jadex rate for a 40' S10, That would adjust fo befng 88% of the NI W rate in 2012) 4) That successive years' 8YR 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 Party in the Newport Beach Master Fee Resolution going forward from July 1, 2013; and 5) The rate charged shall be to greater of the slip or the boat. ff the boat is longer than the slip it Is in, the charge shall be based on the zlip price plus the extra LF of the boat, at that seme size slip rate, 6) Starting in March 2012, rentals for current tenants at all three apartments at the BYB shall be sat at $2,00(Wmonth_ 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 S2,600Jmonth 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 UrbanConsumers). 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 rnonth 10) From July 1, 2012 forward, garage rentals at the BYB shall be adjusted once a year by the Consumer Prue Index (LA -Orange -Riverside, A;f Urban Consumers), RESOLVED by the City Ooundl of the City of Newport Beach that it hereby directs that the Newport Haftr Marina Index for valuing BYB slips and side ties include the fallowing marinas in 2010 and 2011, but that th,Oity's Harbor Resources Manager or his or her designee may adjust or substitute the marinas wlthln the Index in 2012 and beyond via posting the indexed marinas on the City'a website, provided that the substitute marinas are con34dered I or moderately -priced marinas in Newport Harbor; • Ardell Manna • Newport Dories Marins + Harbor Marina Lido YacMAnchorage The resolution calls for the city r Port Calypso • Swales Marina-, and to substitute comparable Sayside Village Marina ..and be it Wsa marinas listed marinas are no longer affordable or comparable Received after Agenda Printed July 26, 2022 Mulvey, Jennifer Non -Agenda Item Subject: FW: Fwd Balboa Yacht Basin Dock Rental Increases From: Kathleen Anderson <kathyvan95 gmail.com> Sent: Tuesday, July 26, 2022 2:30:52 PM (UTC-08:00) Pacific Time (US & Canada) To: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: Fwd Balboa Yacht Basin Dock Rental Increases [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I'd like to read this letter tonight in the public comments slot. Kathy Anderson. Dear Members of the Newport Beach City Council and Newport Beach City Manager: In 1998, 1 rented a dock at the Balboa Yacht Basin. It was a lovely marina, mainly filled with small to mid -size sailboats and power boats, not a marina for Super - Yachts. Twenty-four years later, many of the same boat owners, now retirees, are still Balboa Yacht Basin tenants. There have been dock rental fee increases over the years, but the one presently proposed is so unfairly high that it will be burdensome to the current tenants, all of whom are dealing with increased boating expenses already, due to current fuel prices and inflation. I fear that this large dock rental increase will force tenants, many of them Newport Beach residents, to leave this marina, if not boating itself. It is sad that Newport Beach residents cannot find reasonable priced docks in their own city. I hope that the City Council will take into account the nature of this marina and the unfairness of such a large increase and that you decide to Postpone the increase so that it can be researched and reconsidered. i