HomeMy WebLinkAbout00 - Non-Agenda Items - PowerPointJuly 251", 2022 For Public Comment Non -Agenda 7/26/22
Dear Mayor Muldoon and Council Members,
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