HomeMy WebLinkAbout04 - Allowing Short-Term Mooring License Agreements and Establishing Fair Market Value License Fees for Offshore and Onshore MooringsQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
November 14, 2023
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Paul Blank, City Harbormaster - 949-270-8159,
pblank@newportbeachca.gov
PREPARED BY: Paul Blank, City Harbormaster
PHONE: 949-270-8158
TITLE: Ordinance No. 2023-17 and Resolution No. 2023-62: Allowing
Short -Term Mooring License Agreements and Establishing Fair
Market Value License Fees for Offshore and Onshore Moorings
ABSTRACT:
The City of Newport Beach has 14 moorings in the harbor. At its June, July and August
2023 meetings, the Harbor Commission discussed opportunities and operational
characteristics of a new arrangement that will allow mariners to use moorings without
having to acquire an existing permit or participate in the sub -permit process. The Harbor
Commission recommended Newport Beach Municipal Code (NBMC) revisions to
accommodate a new license arrangement for City moorings as well as fair market fees
for such a license. The recommendation also included a draft license agreement and
process for issuing licenses for these moorings.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2023-17, An Ordinance of the City Council of the City of Newport Beach,
California, Adding Section 17.60.045 (Short -Term Mooring Licenses) to Chapter 17.60
(Harbor Permits and Leases) of the Newport Beach Municipal Code Regarding
Short -Term Mooring Licenses, and pass to second reading on November 28, 2023;
c) Adopt Resolution No. 2023-62, A Resolution of the City Council of the City of Newport
Beach, California, Setting the Fair Market Value License Fee for Short -Term Moorings
Located Upon Tidelands in Newport Harbor; and
d) Approve Budget Amendment No. 24-032 anticipating $22,306 in revenue from the
licensing of City moorings in the current fiscal year (10045451-551034).
4-1
Ordinance No. 2023-17 and Resolution No. 2023-62:
Allowing Short -Term Mooring License Agreements and Establishing
Fair Market Value License Fees for Offshore and Onshore Moorings
November 14, 2023
Page 2
DISCUSSION:
There are 14 moorings permitted to the City of Newport Beach. Ten of the permits are for
offshore moorings and four of them are for onshore moorings. Currently, the City can
write short-term sub -permits on those moorings as well as other permitted moorings that
have been vacant for more than 30 days.
From the NBMC:
• Sub -Permit. The term "sub -permit" shall mean a permit issued by the
harbormaster for the temporary use of a deemed vacant or noticed vacant
mooring.
• A mooring sub -permit may be up to 15 days and may terminate at any time for
any reason and may be renewed based on availability.
The mooring sub -permit process was deliberately limited to 15 days with options to renew.
Part of the rationale for such a limited term is the risk of the actual permittee returning or
wanting to use the mooring and the associated necessity to relocate the sub-permittee.
Some mariners seek longer -term arrangements for a mooring in Newport Harbor but do
not wish to become mooring permittees by participating in the mooring permit transfer
process. To satisfy the demand for such arrangements, the Harbor Commission explored
and discussed the opportunity to establish a new permit, sub -permit, or license type that
would allow the City to rent the City moorings to qualified tenants.
At its August 9, 2023 meeting, the Harbor Commissioners unanimously agreed (6-0 with
one Commissioner absent) on recommendations for a license agreement for City
moorings. These recommended license agreements would be longer term than the
current sub -permit process allows and more easily perpetuated by simply paying the
license fee and not having to sign a new agreement every 15 days. The Commission also
considered the terms, conditions, requirements and fees associated with the
recommended arrangement. The "fair market value rate" recommendation was based on
an appraisal recently performed by a qualified professional. The Harbor Commission
recommends that the fees adjust annually, as other City rents and fees do.
The operational characteristics of the recommended new arrangement include
requirements similar to those of existing permits and sub -permits. The Commission
recommended one requirement different from current permits, which is a requirement to
keep a boat on the mooring (actively use) or forfeit it back to the City so it can be rented
to the next person on an interest list.
The recommended ordinance includes a new section to be added to Title 17, the Harbor
Code. The new section, 17.60.045, establishes the authority to issue licenses for City
moorings and establishes the rules for their use.
4-2
Ordinance No. 2023-17 and Resolution No. 2023-62:
Allowing Short -Term Mooring License Agreements and Establishing
Fair Market Value License Fees for Offshore and Onshore Moorings
November 14, 2023
Page 3
The recommended resolution establishes the fees for the use of the City -licensed
moorings and provides for the adjustment of those rates annually consistent with other
City properties subject to similar agreements.
FISCAL IMPACT:
The budget amendment increases revenue in the Tidelands Fund by $22,306 for short-
term mooring licensing fees anticipated for the months of May 2024 and June 2024. The
estimated annual revenue from the short-term licensing of moorings is $133,836, which
will be incorporated into the revenue budget in future years. The revenue will be posted
to the Short -Term Mooring License account in the Harbor Department, 10045451-
551034.
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
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 —
Ordinance No. 2023-17
Attachment B —
Resolution No. 2023-62
Attachment C —
Moorings Held by the City of Newport Beach
Attachment D —
Fair Market Appraisal for Licensed Moorings
Attachment E —
Proposed License Agreement
Attachment F —
Process for Developing Interest List, Initial Issuance and Maintenance
of Waitlist for City Moorings
Attachment G —
Presentation on New License Arrangement for City Moorings
Attachment H —
Budget Amendment No. 24-032
Attachment I —
NBMC 17.60.045 (redline)
4-3
ATTACHMENT A
ORDINANCE NO. 2023-17
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADDING SECTION
17.60.045 (SHORT-TERM MOORING LICENSES) TO
CHAPTER 17.60 (HARBOR PERMITS AND LEASES) OF
THE NEWPORT BEACH MUNICIPAL CODE REGARDING
SHORT-TERM MOORING LICENSES
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, members of the public may moor their vessels in Newport Harbor by
obtaining a mooring permit or mooring sub -permit under Section 17.60.040 (Mooring
Permits) of the Newport Beach Municipal Code ("NBMC");
WHEREAS, obtaining a mooring permit requires a significant upfront financial
investment, thus keeping them out of reach for many, and mooring sub -permits are limited
to fifteen -day terms and subject to termination at any time for any reason;
WHEREAS, at its August 9, 2023 meeting, the Harbor Commission considered
alternative means for members of the public to be able to use moorings that would not
involve a significant financial investment and would allow for occupancies longer than
fifteen days; and
WHEREAS, by a vote of 6-0 (with one Harbor Commissioner absent), the Harbor
Commission recommended the creation of short-term mooring licenses as an alternative
to mooring permits and sub -permits, whereby boaters would have use of the mooring for
a month, which term would be renewable.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The Table of Contents for Chapter 17.60 (Harbor Permits and
Leases) of the NBMC is amended to read as follows:
Ordinance No. 2023-
Page 2 of 8
Chapter 17.60
HARBOR PERMITS AND LEASES
Sections:
17.60.010 Public Trust Lands - General.
17.60.015 Application for Harbormaster Permits.
17.60.020 Application for Pier/Mooring Permits or the Lease of Public Trust
Lands.
17.60.030 Pier Permits for Noncommercial Piers.
17.60.040 Mooring Permits.
17.60.045 Short -Term Mooring Licenses.
17.60.050 Houseboats.
Section 2: Chapter 17.60 of the NBMC is amended to add new Section
17.60,045 (Short -Term Mooring Licenses) to read as follows:
17.60.045 Short -Term Mooring Licenses.
A. General.
1. If a short-term mooring license is issued pursuant to this section, a person
shall have the right to use or tie to an offshore mooring or onshore mooring
in the waters of Newport Harbor. A mooring license shall be non -transferable
and shall not provide any ownership interest in the underlying tidelands,
which are held in trust by the City and owned by the people of the State.
2. The provisions and regulations in this title pertaining to "permittees" and
"permits" generally shall also be applicable to licensees and mooring
licenses except when this section expressly provides otherwise, or such
application would conflict with this section.
B. Term. Mooring licenses shall be valid for one month and may be renewed,
provided the licensee has paid in full the license fee, any late fees and is not in
violation of any provision of the license or this title.
C. License Fee; Late Fee. A licensee shall pay a license fee equivalent to the monthly
fair market value rent of the mooring, as established by resolution of the City
Council. Failure to pay the license fee by the due date shall be grounds for
4-5
Ordinance No. 2023-
Page 3 of 8
termination of the license by the Harbormaster. If the Harbormaster, in the
Harbormaster's sole discretion, elects to not terminate a license for failure to pay
by the due date, licensee shall pay a late fee in the amount established by
resolution of the City Council. Failure of a licensee to pay the license fee and late
fee within ten (10) days of the date due shall result in immediate termination of the
license and the termination shall not be appealable to the Harbor Commission.
D. Eligibility Criteria.
1. Mooring licenses may be held only by natural persons. No more than two
persons may be listed on a mooring license.
2. A person may hold up to two mooring licenses, but they cannot be for the
same type of mooring (e.g., both onshore or both offshore).
3. Onshore mooring permittees shall be ineligible for onshore mooring licenses
and offshore mooring permittees shall be ineligible for offshore mooring
licenses. Mooring permittees holding more than one mooring permit shall not
be eligible for any mooring license.
4. The person or persons listed on the mooring license must have at least a
fifty (50) percent ownership interest in the vessel assigned to the mooring.
The minimum ownership interest requirement may be satisfied by the
combined interests of the two persons. For vessels that are not held in an
individual capacity, such as in trust or by a limited liability company, evidence
of the required minimum ownership interest shall be provided to the
satisfaction of the Harbormaster.
E. Application for Mooring License. Application for a mooring license shall be filed
with the Harbormaster, on forms approved by the Harbormaster and shall include
the following in addition to such other information the Harbormaster may require:
1. Applicant(s)' full legal name, current address, current telephone number and
current email address;
2. Vessel registration or other proof of ownership required by the
Harbormaster; and
Ordinance No. 2023-
Page 4 of 8
3. Insurance, which types and amounts shall be determined by the Risk
Manager.
F. Issuance of Mooring License. The Harbormaster may issue mooring licenses
subject to the conditions set forth in this subsection.
1. Each person listed on a mooring license shall be individually and collectively
responsible for all activities pursuant to the mooring license and compliance
with all applicable rules, regulations, and conditions.
2. A licensee may not allow vessels other than the assigned vessel and tender
to use the mooring.
3. A licensee shall ensure mooring spreader lines remain visible on the surface
at all times by the use of floats or other devices or methods and shall keep
the lines clean of algae and other marine growth. Except for spreader lines,
the City shall be responsible for the maintenance, repair, and replacement
of mooring system components, including, but not limited to, chains,
shackles, anchors, weights, lines, and buoys.
4. Live-aboards shall be prohibited.
5. The City may temporarily assign a mooring that is vacant or unoccupied to
another vessel through the issuance of a mooring sub -permit in accordance
with Section 17.60.040(H).
6. A licensee shall move the vessel from the mooring to another location when
deemed necessary by the Public Works Director and/or Harbormaster.
Upon the licensee's failure to do so, the City or a contractor retained by the
City may move the assigned vessel at the licensee's expense.
7. A licensee shall be subject to relocation or reassignment to another mooring
pursuant to Section 17.60.040(B)(2)(1).
8. The Harbormaster may board the assigned vessel at any time to inspect the
condition and operability of the marine sanitation device(s) and/or insert dye
tablets to determine whether said devices are discharging overboard.
4-7
Ordinance No. 2023-
Page 5 of 8
9. A licensee shall defend and indemnify the City and any other government
entity with jurisdiction against any claims or losses arising out of, or related
to the use of, the mooring license except where the claim or loss arises from
a sub-permittee's damage of the mooring, or out of the negligence and/or
misconduct of a person assigned the mooring as a mooring sub-permittee
under Section 17.60.040(H).
10. A licensee shall notify the City within five (5) days of any change in the
information that was provided in their mooring license application including,
but not limited to, a change in ownership interest in the assigned vessel.
G. Extended Vessel Absence. Vacancy or absence from the mooring by the assigned
vessel for at least twenty-five (25) consecutive days shall be deemed
abandonment of the mooring and shall result in automatic termination of the
mooring license. Termination of license based on abandonment shall not be
appealable to the Harbor Commission. The following situations shall not constitute
a mooring being deemed abandoned:
1. The absence or vacancy from the mooring, which shall not exceed six (6)
months, with the prior written approval of the Harbormaster.
2. The licensee is in the process of changing the assigned vessel, provided
that (a) written notice of the intent to remove and replace the assigned
vessel is given to the Harbormaster prior to removal of the vessel, (b) all
required information and documentation for the new vessel, including proof
of ownership or registration, is submitted to the Harbormaster within ninety
(90) days of the date of the written notice, and (c) the vessel is made
available for inspection by the Harbormaster for compliance with Section
17.25.020(H).
H. Mooring of a Tender. A single tender, which serves as access to and from shore
to the assigned vessel, may be secured to the assigned vessel or to the offshore
mooring in the absence of the assigned vessel. The tender must be secured in
such a manner so as not to intrude into the fairway or obstruct other vessels.
Termination.
1. The Harbormaster may terminate a mooring license for the licensee's failure
to correct any violation of this section or any applicable provision of Title 17
Ordinance No. 2023-
Page 6 of 8
within the timeframe set forth in a notice of violation issued by the
Harbormaster.
2. Upon a determination that grounds for termination of a mooring license
exist, the Harbormaster shall serve written notice of the termination in
accordance with Section 1.05.030 to the licensee stating the grounds for
the action, the effective date of the decision, and the right of the licensee to
appeal the decision to the Harbor Commission. The licensee shall have
fourteen (14) days from the date on which notice is deemed served to
request a hearing or else the decision of the Harbormaster shall be final.
Termination of a license for failure to pay any fees or based on the
abandonment of a mooring shall not be appealable to the Harbor
Commission.
3. Upon termination of the mooring license, the licensee shall immediately
remove their vessel(s) from the mooring. The City may impound any vessel
not removed within ten (10) days of the termination date and thereafter
dispose of it in the manner provided by law. City -incurred costs for removal
of the vessel may be charged against the licensee and collected in any court
of competent jurisdiction or recovered by the City from the proceeds of sale
of the vessel.
4. If a timely appeal is filed, the process for revocation of mooring permits set
forth in Section 17.70.020 shall be followed.
Section 3: The City Council authorizes the Harbormaster to prepare a mooring
license application form and license agreement that is consistent with terms and
provisions of this ordinance and approved as to form by the City Attorney.
Section 4: The City Council authorizes the Harbormaster to take any other
actions necessary to implement the mooring license program, consistent with this
ordinance, such as the creation of a selection process and waiting list for issuing mooring
licenses, and requiring payment of an initial fee to join the waiting list and annual fee to
remain on the list, once those fees are established by resolution of the City Council.
Section 5: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
i •
Ordinance No. 2023-
Page 7 of 8
Section 6: If any section, subsection, sentence, clause or phrase of this
ordinance 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 ordinance. The City
Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 7: The City Council finds the introduction and adoption of this ordinance
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 California Code of Regulations, Title 14, Division 6,
Chapter 3 ("CEQA Guidelines"). The ordinance has no potential for resulting in physical
change to the environment, directly or indirectly, because the impacts from the usage of
existing moorings as allowed under the ordinance will be no different from the impacts
from the usage under the existing permit program. For the same reasons, the City Council
also finds the introduction and adoption of this ordinance is exempt from CEQA
environmental review pursuant to Section 15301 (Existing Facilities) of the CEQA
Guidelines.
Section 8: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
4-10
Ordinance No. 2023-
Page 8 of 8
Section 9: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
(30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 14th of November, 2023, and adopted on the 28th day of
November, 2023, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
NOAH BLOM, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
AA ON C. HARP, CITY ATTORNEY
4-11
ATTACHMENT B
RESOLUTION NO. 2023- 62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, SETTING THE FAIR
MARKET VALUE LICENSE FEE FOR SHORT-TERM
MOORINGS LOCATED UPON TIDELANDS IN NEWPORT
HARBOR
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 issue permits to members of the public to
construct, maintain, and use moorings upon those tidelands;
WHEREAS, at its August 9, 2023 meeting, the Harbor Commission considered
alternatives to mooring permits and mooring sub -permits by which members of the public
would be able to use moorings in Newport Harbor and recommended by a vote of 6-0
(with one Commissioner absent) the creation of short-term mooring licenses;
WHEREAS, at the same meeting, the Harbor Commission also reviewed and
considered an appraisal by Netzer & Associates, dated August 2, 2023 ("Netzer
Appraisal"), that analyzed the fair market value of rent for use of onshore and offshore
moorings held by the City ("City moorings") under a short-term mooring license;
WHEREAS, based on the Netzer Appraisal and documents and comments
received at the meeting, the Harbor Commission further recommended: (a) that the short-
term mooring license fee be set in accordance with the Netzer Appraisal, with subsequent
changes to be based on adjustments to the index rate used to determine the rent for
Balboa Yacht Basin slips ("Balboa Yacht Basin index rate"), (b) for the Harbor
Commission to have the ability to re-evaluate subsequent changes in the mooring license
fee and whether to continue the use of the Balboa Yacht Basin index rate if the City
Council were to change the calculation of the Balboa Yacht Basin index rate or decide to
utilize a different methodology to establish rents for the Balboa Yacht Basin, and (c) that
persons who wish to join the waitlist for the short-term mooring licenses be charged an
initial fee and annual fee to cover the cost associated with maintaining the waitlist, which
fees shall be established by resolution of the City Council;
4-12
Resolution No. 2023-
Page 2 of 4
WHEREAS, Ordinance No. , which is being introduced
concurrently with this resolution, would add NBMC Section 17.60.045 (Short -Term
Mooring Licenses) to provide a process for the issuance of short-term mooring licenses
that would allow the public to use onshore and offshore moorings in Newport Harbor for
a renewable one -month term;
WHEREAS, like mooring permits, short-term mooring licenses issued by the City
do not convey any underlying property interest, and instead only allow for the temporary
mooring of a vessel upon the waters of Newport Harbor;
WHEREAS, California Constitution Article 16, Section 6, NBMC Section
17.60.020(E) and City Council Policy F-7 require the users of public tidelands be subject
to rental or lease charges reflective of the fair market value related to such use, as
determined by the City Council;
WHEREAS, the City Council has the exclusive discretion to determine fair market
value rental or lease charges based, in part, upon the findings of a City -selected
appraiser; and
WHEREAS, the City Council has reviewed and considered the Netzer Appraisal
as well as all other documents and comments in the record in connection with this
resolution.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby find that the rent provisions contained
in this resolution provide for the charging of a fair market short-term mooring license fee
and that the license fee (and adjustments) constitutes fair market value rent for the City
moorings. These findings are made by the City Council in its exclusive discretion but are
based, in part, on the information in the appraisal of its City -selected appraiser and, in
addition, on other testimony and documents in the record for this matter. The City Council
further finds and determines the license fee for City moorings used pursuant to a short-
term mooring license shall be set in accordance with the provisions of this resolution. The
license fee for City moorings shall be set as follows:
4-13
Resolution No. 2023-
Page 3 of 4
Length
(LF)
Mooring Type
License Fee (monthly)
$/LF
Total
18
Onshore
$9.00
$162.00
30
Offshore
$13.00
$390.00
40
Offshore
$15.00
$600.00
50
Offshore
$17.50
$875.00
60
Offshore
$20.00
$1,200.00
95
Offshore
$22.00
$2,090.00
Section 2: The short-term mooring license fee shall be adjusted annually on
July 1 by the annual percentage change to the index rate used to determine rental
increases for the Balboa Yacht Basin. The Harbor Commission shall re-evaluate
subsequent changes in the mooring license fee and whether to continue the use of the
Balboa Yacht Basin index rate if the City Council changes the calculation of the index rate
or decide to utilize a different methodology to establish rents for the Balboa Yacht Basin,
which recommendations, if any, shall be sent to the City Council for consideration.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: 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, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
4-14
Resolution No. 2023-
Page 4 of 4
Section 5: The City Council finds the setting of fair market value license fee for
moorings 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 California Code of Regulations,
Title 14, Division 6, Chapter 3 ("CEQA Guidelines"), because it has no potential for
resulting in physical change to the environment, directly or indirectly. Alternatively, the
City Council finds the setting of fair market value license fee for moorings located upon
tidelands is entitled to a Class 1 Categorical Exemption pursuant to CEQA Guidelines
Section 15301 because the mooring rent contemplates the continued use of existing
facilities, with no expansion of the proposed use. Further, the City Council finds the
setting of fair market value license fee for moorings located upon tidelands is entitled to
a Statutory Exemption pursuant to CEQA Guidelines Section 15273(a)(1) because the
fair market value license fee established by the City Council will be used to meet operating
expenses within the tidelands.
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 14th day of November, 2023.
NOAH BI-OM
Mayor
r_rid�'16
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY T
TORNEY'S OFFI E
A&A C. Harp
City Attorney
4-15
ATTACHMENT C
��'��wr City of Newport Beach
0 Moorings Held by the City of Newport Beach
' As of: 10/23/2023
r�
C9t 1 F4 �yr'��
Mooring
Permittee
Munis size
Type
A-072
CITY OF NEWPORT BEACH
30.00
Offshore Mooring
A-094
CITY OF NEWPORT BEACH
95.00
Offshore Mooring
C-032
CITY OF NEWPORT BEACH
50.00
Offshore Mooring
C-034
CITY OF NEWPORT BEACH
50.00
Offshore Mooring
C-036
CITY OF NEWPORT BEACH
60.00
Offshore Mooring
C-042
CITY OF NEWPORT BEACH
40.00
Offshore Mooring
F-014
CITY OF NEWPORT BEACH
60.00
Offshore Mooring
H-031
CITY OF NEWPORT BEACH
50.00
Offshore Mooring
H-081
CITY OF NEWPORT BEACH
60.00
Offshore Mooring
J-0211
CITY OF NEWPORT BEACH
60.00
Offshore Mooring
N-062A
CITY OF NEWPORT BEACH
18.00
Onshore Mooring
5-065
CITY OF NEWPORT BEACH
18.00
Onshore Mooring
5-135B
CITY OF NEWPORT BEACH
18.00
Onshore Mooring
W-017
I CITY OF NEWPORT BEACH
I18.00
Onshore Mooring
4-16
ATTACHMENT D
NETZER & ASSOCIATES
Real Estate Appraisal & Consulting
August 2, 2023
File No. 2023-014
Lauren Wooding Whitlinger
Real Property Administrator
City of Newport Beach, Community Development Department
100 Civic Center Drive, First Floor Bay D
Newport Beach, CA 92660
Re: Appraisal Services - Fair Market Rent
City Owned Moorings - 10 Offshore Moorings & 4 Onshore Moorings
Newport Beach, California
Dear Ms. Wooding Whitlinger:
In accordance with your request and authorization, I have completed the research and analysis to
estimate the Fair Market Rent in the above referenced property as of July 21, 2023. This letter is
a Restricted Appraisal Report that is for internal purposes only and contains a total of 20 pages
plus related Attachments and has been prepared in accordance with the Uniform Standards of
Professional Appraisal Practice (USPAP) and is subject to the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute. The Assumptions and
Limiting Conditions that apply to this assignment are included as Attachment A.
This report is a Restricted Appraisal Report as described in USPAP Standards Rule 2-2 as
only a summary of the comparable market data and value conclusions are presented. The
back-up data has been retained in my files.
The outbreak of COVID-19, commonly referred to as the coronavirus, has caused significant
disruption of the financial markets, both in the United States and worldwide. Because of the
rapidly changing environment, market participants (buyers, sellers, brokers, lenders, appraisers,
tenants) in the real estate market have yet to formulate their opinions on the impact the virus and
related stay-at-home orders, business closures and social distancing recommendations, in making
their real estate investment decisions. I have relied on the economic trends and comparable sale
transactions, which occurred during the global pandemic, in this analysis. In the short-term it is
very possible that there may be a significant slowdown in real estate transaction activity, which
may impact pricing, return requirements and investment expectations. In addition, it may have an
impact on operating expenses and occupancy levels. Only time will reveal how this pandemic will
affect property value and the long-term impact on pricing cannot be predicated at this time and
will depend on the length and severity of the global pandemic. I reserve the right to make such
adjustments to the analysis, opinions and conclusions set forth in this report as may be required by
consideration of additional data or more reliable data that may become available.
Purpose & Function of Report
The Purpose and Function of this Report is to estimate the Fair Market Rent, in the "City Owned
Moorings" that are located in Newport Harbor, including ten (10) offshore moorings and four (4)
onshore moorings.
170 E. Seventeenth Street, Suite 206 ♦ Costa Mesa, CA 92627 ♦ Phone (949) 631-6799 ♦ JamesBNetzer@aol.com
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Lauren Wooding-Whitlinger
August 2, 2023
Page 2
Client & Intended User
This Appraisal Report was requested by Lauren Wooding-Whitlinger, Real Property
Administrator, with the City of Newport Beach, Community Development Department on behalf
of the Harbor Commission, who are the Client and are the Intended Users of this Appraisal Report.
In the event that this matter proceeds to trial or other governmental or administrative hearing, the
Trier -of -Fact will become an intended user.
Date of Value
I have completed a limited inspection of the subject "City Owned Moorings" on July 21, 2023,
which is the date of value presented in this report.
Legal Description
A complete legal description was not provided; however, this does not impact the analysis or
conclusions presented.
Interest Annraised
The interest appraised is the "Fee Simple Estate"/t which is defined as follows:
Absolute ownership unencumbered by any other interest or estate, subject only to
the limitations imposed by the governmental powers of taxation, eminent domain,
police power and escheat.
Market Rent Defined
The term "Market Rent"/2, as used in this report, is defined as follows:
The most probable rent that a property should bring in a competitive and open
market reflecting the conditions and restrictions of the specified lease agreement,
including the rental adjustment and revaluation, permitted uses, use restrictions,
and expense obligations, term, concessions, renewal and purchase options, and
tenant improvements (TIs).
Bulkhead Line Defined
The term `Bulkhead Line"/3, shall mean the harbor/land water perimeter lines established in
Newport Harbor by the Federal Government which define the permitted limit of filling or solid
structures that may be constructed in Newport Harbor. The establishment of the bulkhead lines
does not necessarily allow the property owner to build to the limits of the bulkhead line due to
potential environmental considerations established by the State of California and/or the Federal
government.
Mooriniz Defined
The term "Mooring"/4 shall mean a device consisting or a floating buoy or other object that is
t Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, (Chicago, 2015), p. 90.
2 Appraisal Institute, The Dictionary of Real Estate Appraisal, Sixth Edition, (Chicago, 2015), p. 140.
3 City of Newport Beach, Harbor Code, Chapter 17.01.030.B.9.
4 City of Newport Beach, Harbor Code, Chapter 17.01.030.J.7.
Lauren Wooding-Whitlinger
August 2, 2023
Page 3
secured to the harbor bottom by an anchor system for purposes of securing a vessel and includes
any apparatus used to secure a vessel in Newport Harbor which is not carried aboard such vessel
as regular equipment when under way.
Mooring Area Defined
The term "Mooring Area"/5 shall mean an area designated for a group of moorings.
Offshore Mooring Defined
The term "Offshore Mooring"/6 shall mean a mooring that is located bayward of the pierhead
line and is comprised of a single or double buoy, weight and chain installed for the purpose of
berthing a vessel, as provided in Chapter 17.25.
Onshore Mooring Defined
The term "Onshore Mooring ,/7 or "shore mooring" shall mean a mooring for vessels which is
located in the nearshore perimeter of the harbor and its islands, perpendicular to the shoreline,
where one end of the mooring line is attached to a point on or adjacent to the bulkhead, and the
other end is attached to a single buoy, weight and chain installed for the purpose of berthing a
vessel, as provided in Chapter 17.25.
Permittee(s) Defined
The term "Permittee(s)"/' shall be a person or entity who holds a validly issued permit under any
provision of this title.
Pierhead Line Defined
The term "Pierhead Line"/9, shall mean the harbor water area perimeter lines established in
Newport Harbor by the Federal government or the City, in cooperation with private associations,
that define the permitted limit of fixed pier, floating dock and other in -water structures which
may be constructed in the harbor. The pierhead line typically shall define the limit of pier and
floating dock structures and defines the limit of construction except as otherwise approved by the
Harbor Commission.
Project Line Defined
The term "Project Line"Po, shall mean the harbor water area channel lines of the improvements
and by the Federal Government in 1935 through 1936.
Tidelands Defined
The term "Tidelands'Y" or "Public Tidelands" shall mean all lands that were granted to the City
by the State of California, including, but not limited to, submerged lands and/or lands that are
s City of Newport Beach, Harbor Code, Chapter 17.01.030.J.8.
6 City of Newport Beach, Harbor Code, Chapter 17.01.030.L.1.
City of Newport Beach, Harbor Code, Chapter 17.01.030.L.2.
8 City of Newport Beach, Harbor Code, Chapter 17.01.030.M.3.
9 City of Newport Beach, Harbor Code, Chapter 17.01-030.M.6.
10 City of Newport Beach, Harbor Code, Chapter 17.01-030.M.8.
" City of Newport Beach, Harbor Code, Chapter 17.01.030R 1.
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Lauren Wooding-Whitlinger
August 2, 2023
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located between the lines of mean high tide and mean low tide.
Uplands Defined
The term "Upland"/12 shall mean land with a shared property line with and immediately adjacent
to Newport Harbor.
City Owned Mooring Defined
The term "City Owned Mooring" is not defined in the Harbor Code. For purposes of this Appraisal
Report, the term "City Owned Mooring" shall mean either an "Onshore Mooring" or an "Offshore
Mooring" (as defined above), in which the City of Newport Beach is the "Permittee" and the
mooring is being rented/leased by the City on a long-term (as opposed to a "transient") basis. The
mooring tackle is owned and maintained by the City of Newport Beach and the mooring rental
agreement/lease and associated occupancy rights are NOT transferable. Without prior approval of
the Harbormaster, the rental/lease agreement may be cancelled by the City if the mooring is
unoccupied for period that has not been established, but assumed to be either 60- or 90-days.
Probability of Change
The opinion of value is based upon my knowledge of conditions as of the date of this report.
Constantly changing economic, social, political and physical conditions have varying effects upon
real property values. Even after the passage of a relatively short period of time, property values
may change substantially and require a review based on differing market conditions. This is
especially relevant due to the current issues surrounding the market's reaction to the
COVID-19 virus, and the impact on the market rent as of the date of this appraisal cannot
be measured.
Owner of Record & Property History
It is assumed that title to the subject is vested in the City of Newport Beach. I have reviewed the
City's Mooring Transfer Logs from 2017 through 2023. The Mooring Transfer Logs indicate that
Mooring J-211 transferred April 30, 2018, with an indicated transfer value of $30,000. The
Mooring Logs do not indicate the name of the Transferor or the Transferee. The Mooring Transfer
Logs do not include the transfer of any other "City Owned Moorings" between 2017 and 2023. 1
did not uncover any other listings for sale or offers and I have not been made aware of any pending
sales or current offers to purchase any of the "City Owned Moorings".
Scope of Assignment
I have completed the research and analysis necessary to estimate the fair market rent of the "City
Owned Moorings."
Subject Property
The subject of this appraisal are the "City Owned Moorings", which are summarized by mooring
number, length (linear feet), type (onshore/offshore) and orientation (perimeter/interior), in the
following table:
12 City of Newport Beach, Harbor Code, Chapter 17.01.030.Q.1.
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Number
Len th
Type
Orientation
A-072
30
Offshore
Interior
A-094
95
Offshore
Perimeter
C-032
50
Offshore
Interior
C-034
50
Offshore
Interior
C-036
60
Offshore
Perimeter
C-042
40
Offshore
Interior
F-014
60
Offshore
Perimeter
H-031
50
Offshore
Perimeter
H-081
60
Offshore
Corner
J-0211
60
Offshore
Interior
N-062A
18
Onshore
Not Applicable
S-065
18
Onshore
Not Applicable
S-135B
18
Onshore
Not Applicable
W-017
18
Onshore
Not Applicable
The above moorings are the "City Owned Moorings" that are the subject of this appraisal report.
COMPARABLE RENTAL ANALYSIS
The purpose and function of this report is to estimate the Current Fair Market Rent of the "City
Owned Moorings", which includes both onshore and offshore moorings over the tidelands located
throughout Newport Harbor.
The fair market rent analysis of the "City Owned Moorings" is based on the assumption that the
City is responsible for providing the mooring hard ware and the maintenance and repair of the
mooring hardware, the mooring will be leased on a long-term (non -transient) basis, which may
include a month -to -month renewable rental or a licensing agreement, and that the lease/rental
agreement and associated right of occupancy will not be transferable.
The following table is a summary of the mooring programs uncovered that meet the assumptions
that the fair market rent analysis is based on. It should be noted that in many jurisdictions moorings
that are not transferable with the landlord responsible for the maintenance and repair are rented on
a short-term, or transient, basis at a daily rate but not leased/rented on a long-term basis. The
market data presented in the table does not reflect transient mooring rates.
Onshore moorings are somewhat unique to Newport Harbor and while I have uncovered "shore"
mooring data in other jurisdictions, including Long Beach (boat racks & sand stakes above the
water line except at the highest tide), Santa Barbara (open beach storage above the water line) and
San Diego (beach bars on the sand above the water line), these products are not judged to be
relevant to the analysis. Onshore mooring information presented is from the Lido Isle Community
Association (LICA) and is judged to be relevant to the balance of the Newport Harbor onshore
moorings. It should be noted that the San Diego Mooring Company's "Mediterranean" moorings
are somewhat analogous to a shore mooring, in that they are a hybrid mooring with the stern of
the vessel attached to a fixed point on the seawall (stern to quay), with the anchor dropped offshore
and the vessel is moored perpendicular to the seawall or quay. This method is used in areas with
little room and tidal range and provides direct shore access.
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MARKET RENT SURVEY - MOORINGS
JULY 2023
Data No.
Vessel
Total
Monthly Rent
Equipment
Name
Mooring
Length
Monthly
$/Linear Ft.*
Maintenance
Location
Type
LF
Rent(mooring
LF
Cost
1/
Lido Isle Community Association
Onshore
18'
$105.37
$5.85
Landlord
701 Via Lido Soud
Newport Beach Lido Isle
2/
San Diego Mooring Co.
Landlord
Shelter Island Roadstead
Offshore
19'- 54'
$128.17
$2.37
America's Cup Harbor, rows B-J
Offshore
Under 30'
$147.57
$4.92
America's Cup Harbor, rows L-V
Offshore
30% 65'
$157.07
$2.42
Laurel Street Roadstead
Offshore
19% 54'
$138.02
$2.56
Laurel Street Mediterranean
Mediterranean
Under 35'
$147.57
$4.22
Laurel Street Dual Point
Offshore
19'- 35'
$147.57
$4.22
Bay Bridge Roadstead (Coronado)
Offshore
19'- 54'
$128.17
$2.37
San Diego Harbor
3/
Monterey Harbor (east mooring)
Offshore
Under 30'
$133.90
$4.46
Landlord
250 Figueroa Street
30'- 40'
$177.70
$4.44 - $5.92
Monterey
41'- 45'
$222.60
$4.95 - $ 5.42
4/
Morro Bay
Offshore
+32' - +60'
$330
$5.50 - $10.31
Landlord
1275 Embarcadero
Morro Bay
5/
Pillar Point Harbor
Offshore
24'
$132.00
$5.35
Landlord
1 Johnson Pier
minimum
(min.)
Half Moon Bay
6/
Newport Harbor Yacht Club
Offshore
No min.
Varies
$13.25 or
Landlord
720 W. Bay Avenue
vessel
by
$13.85*
Newport Beach
length
Len th
7/
Balboa Yacht Club
Offshore
No min.
Varies
$17.50 single
Landlord
1801 Bayside Drive
Vessel
by
$15.25 double
Corona del Mar
length
Length
*The information uncovered & the parties interviewed reported different rent per linear foot, but all reported this range
Discussion & Analysis
The Lido Isle Community Association (LICA) leases 18-foot onshore moorings that are located
on Lido Isle. The annual payment was raised in 2023 from the rate of $1,149.50 annually ($5.32
per linear foot per month) in 2022. The lessee must be a "Qualified Lessee", which means either
a LICA property owner or resident renter and the vessel must be owned by a Lido Isle Resident.
The vessel must occupy the mooring except when in use or being repaired (not to exceed 60 days)
and the LICA has the right to terminate the Lease if the boat is not being "actively used". Proof
of vessel ownership, including annual updating, is required to maintain the individual mooring
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Lauren Wooding-Whitlinger
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permit. Only one "permittee" is allowed on the lease, even if a vessel is "shared". The moorings
are not transferable (even to the owner of a "shared" boat) and revert back to the LICA upon
termination of the lease. The inspection and maintenance of the mooring lines are the
responsibility of the LICA. The weighted average rent per linear foot for wet slips on Lido Isle
that are in the marina managed by the LICA is $25.06 per linear foot, with slips from 18- to 36-
feet. As noted, the onshore moorings are not transferable and there is no initial investment to
acquire a mooring; however, they are limited to either Lido Isle property owner's or residents. A
review of the local Multiple Listing Service (MLS) indicates the lowest sale price for a residence
on Lido Isle in 2022/23 was $2,400,000 for a single-family residence located on the interior of the
island. The MLS indicates the lowest lease rate on Lido Isle is $3,500 per month for a
condominium or apartment and $6,500 per month for a single-family residence during the same
time period. As noted, these moorings are for the exclusive use of residents of Lido Isle and as a
resident of Lido Isle you are a member of the Lido Isle Community Association. The cost of
entry, the membership in the community association that administers the moorings, the exclusive
use of the moorings by residents, and the fact that the mooring rates are set by the community
association suggest that, while instructive in setting the fair market rent, it may require secondary
consideration in the final analysis as the "City Owned Moorings" are not subject to these
considerations.
The San Diego Mooring Company has four mooring fields in San Diego Harbor that are between
Shelter Island and the Coronado Bay Bridge. They have a total of 462 mooring buoys that can
accommodate vessels from 19- to 54-feet. They report a 100-percent occupancy (with the
exception of moorings that are being serviced or have a derelict vessel) and a wait list. The
moorings in each of the mooring fields rent for the same monthly rent regardless of vessel length
and the table above reflects the rent per linear foot of the maximum mooring length. As an
example, all of the moorings at Shelter Island Roadstead are rented for $128.17 per month and will
accommodate vessels between 19- and 54-feet (LOA), which reflects a monthly rent per linear
foot of $2.37 ($128.17/mo. -:- 54') for a 54-foot mooring. A second example of the rent per linear
foot figure is America's Cup Harbor Rows B-J. These mooring are quoted as accommodating
vessels "under 30"' and rent for $147.57 per month, or $4.92 per linear foot ($147.55 -:- 30') of
mooring length, regardless of the vessel length. The moorings are a combination of single -point
($128.17/month), double point ($138.02, $147.57 & $157.07 per month depending on location)
and Mediterranean (under 35-feet @ $147.57/month) moorings. The Shelter Island and Bay
Bridge mooring fields have open dinghy storage on chains (no dinghy racks) at nearby public
beach parks, Shoreline Park & Coronado Tidelands Park, respectively. The remaining mooring
fields have access to public dinghy docks. Parking is only provided at Shelter Island (a municipal
lot) and long-term parking (more than 2 hours or overnight) is not provided at any of the locations.
Parking at these locations is either on public streets in the surrounding neighborhoods or paid
parking in private or municipal lots. The landlord is responsible for all the mooring tackle, with
the exception of the line from the mooring ball to the vessel on the single -point moorings. The
moorings are non-transferrable and there is an application fee between $64.00 and $79.00. Their
lease rates have not been adjusted since 2007/2008, despite repeated attempts by the operator to
get Port approval to increase the rates. It was reported that the Port and State Lands Commission
have suggested that they may be open to an adjustment in 2023/2024. The operator believes the
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Lauren Wooding-Whitlinger
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Page 8
fair market rent for these moorings is between $10.26 (19 LF mooring) and $19.40 (63 LF
mooring) per linear foot. A survey of the five most proximate marinas indicates they provide slips
from 25- to 100-linear feet, with current slip rates ranging from $20.61 to $60.00 per linear foot,
with an average of $26.35 per linear foot.
The City of Monterey has a seasonal program (April thru October) for the rental of City owned
moorings located in the "East Mooring". The are two -point moorings that will accommodate
vessels up to 45-feet. The mooring tackle is owned and maintained by the City and the permit is
not transferrable. The rental includes a dinghy space that are rented for $28 per month, which
equates to $0.93/LF, $0.70/LF and $0.62/LF, for a 30-, 40- and 45-foot mooring, respectively. The
slip rates in the adjoining City -owned, and managed marina range from $13.18 to $28.58 per linear
foot, with an average of $17.23 per linear foot. It should be noted they also administer the "Outer
Harbor Mooring" where the tackle is owned by the permittee.
The City of Morro Bay leases offshore moorings that will accommodate vessels between
approximately 32- and 60-linear feet. The moorings include the tackle, which is owned and
maintained by the City, and the monthly rate is $330, which equates to $5.50 (60-LF) and $10.31
(32-LF) depending on the size of the vessel. This rate was adjusted on July 1, 2023 and the prior
rate was $282 per month. These moorings are non -transferable. The marinas surveyed include
slips from 25- to 65-linear feet with an average slip fee of $26.82 per linear foot. It should be
noted that the City also leases tidelands for private moorings (tenant owned tackle) for $112 per
month.
San Mateo County Harbor District manages and operates Pillar Point Harbor in Half Moon Bay.
They discontinued their mooring program in 2023; however, prior to the cancellation of the
program they rented moorings, with District owned mooring tackle, for $5.36 per linear foot, with
a minimum fee of $132.00 per month. The mooring were located in the outer harbor and leased
based on the vessel length and the fixed fee per linear foot applied to all vessels regardless of
length. They operate a marina in Pillar Point Harbor that offers slips ranging from 30- to 65-linear
feet, with slip fees between $10.74 and $12.03 per linear foot, with an average fee of $11.33 per
linear foot. The mooring fee for privately owned tackle was $2.03 per linear foot. It was reported
that the mooring programs were discontinued for safety reasons as opposed to a lack of demand.
While this program has been recently discontinued it is instructive in establishing the fair market
rent for the "City Owned Moorings".
The Newport Harbor Yacht Club has 72 offshore moorings that are immediately adjacent to the
club. With one exception, all of the moorings are a single -point mooring. The moorings are for
members only and there are monthly club dues and a membership fee. The club is responsible for
the maintenance and repair of the mooring tackle. Several sources provided the mooring rates and
the figures were reported to be either $13.25 per linear foot or $13.85 per linear foot and the fee is
based on the vessel length. All of the parties report that the shore boat service is included in the
mooring fee. One source noted the mooring fees had not been adjusted in "a long-time" and they
were recently increased and at the reported rates ($13.25 or $13.85/LF) the club essentially
"subsidizes" the moorings as a service to its members.
The Balboa Yacht Club mooring field includes 80 offshore moorings; however, a few are
privately owned. The club provides both single point and double point moorings. The mooring
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Lauren Wooding-Whitlinger
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Page 9
fees are charged based on the vessel length and are $17.50 per linear foot for single -point moorings
and $15.25 per linear foot for double point moorings. The club is responsible for the maintenance
and repair of most of the mooring tackle, with the tenant responsible for the maintenance "above
the chain" (swivel, shackle & lines). These moorings are for club members only, which requires
membership fee and monthly dues. It was reported the club provides a shore boat from 8:00 a.m.
until dusk, which is provided at an additional fee of $70.00 per month.
The comparable data is all relatively similar in terms of the physical characteristics, maintenance
responsibilities and tackle included in the rental rate; however, there are differing locational
characteristics that need to be accounted for. The location adjustment is based on the difference
between the average slip rents in each marina relative to the average slip rents from my survey of
seven marinas in Newport Harbor. It should be noted that the marinas associated with the
American Legion (members only that reflects the low end of the range) and those owned/managed
by California Recreation Company (highest quality and rent structure with limited information
available) have not been included in the survey. The marina survey is included as Attachment B.
On a harbor wide basis, the average monthly slip rate for the marinas included in the survey is
$48.77 per linear foot, with a median figure of $45.00 per linear foot.
The following table is a summary of the adjustment to the comparable mooring data for the
differing locational characteristics relative to the subject based on the average monthly slip rent
for the various locations relative to the average monthly slip rent in Newport Harbor ($48.77/LF).
In the cases where there is a single rate for a range in the mooring length I have used either the
average mooring rate, or the low and the high rent per linear foot. Recognizing that Lido Isle is
located in Newport Harbor, but that residency on Lido Isle is required to rent a mooring, I have
used the average slip rate for the Lido Isle wet slips as they have similar residency requirements.
It is recognized that Lido Isle has smaller slips that rent for less than larger slips and the average
slip rate is low as a result of the limited slip lengths.
Mooring
Mooring
Average
Adjusted
Length
Rate
Slip Rate
Adjustment
Mooring Rate
Location
LF
$/LF
$/LF
Factor
$/LF
Lido Isle
18'
$5.85
$25.06 Lido
$48.77/$25.06
$11.48
$48.77 Harbor
$48.77/$48.77
$5.85
San Diego
19'-54'
$2.37 (low)
$26.35
$48.77/$26.35
$4.39
$4.92 hi
$48.77/$26.35
$9.24
Monterey
Under 30'
$4.46
$17.23
$48.77/$17.23
$12.62
30'-40'
$5.18 (avg.)
$48.77/$17.23
$14.44
4 P-45'
$5.19(avg.)
$48.77/$17.23
$14.69
Morro Bay
32'-60'
$5.50 (low)
$26.82
$48.77/$26.82
$10.00
$10.31 (high)
$48.77/$26.82
$18.75
Pillar Point
24' min.
$5.35
$11.33
$48.77/$11.33
$23.03
NHYC
None
$13.35
$48.77 Harbor
$48.77/$48.77
$13.35 or
$13.85
1
1
$13.85
BYC
None
$17.50 - single
$48.77 Harbor
$48.77/$48.77
$17.50 - single
$15.25 -double
1 $15.25 - double
On the basis of the Comparable Rental Analysis the monthly fair market rent for the "City Owned
Moorings," under the assumption that they are not transferrable and the City will maintain and
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Lauren Wooding-Whitlinger
August 2, 2023
Page 10
repair the mooring tackle, is in the range of $9.00 to $23.00 per linear foot. Recognizing that the
market suggests there is a direct relationship in terms of increased rent per linear foot as the
mooring length increases, in the Reconciliation the concluded rent range will be applied to the
various mooring lengths on a graduated scale between $5.85 and $23.00 per linear foot.
"RATIO" ANALYSIS
One measure of estimating the market rent for moorings is to compare mooring rents to the slip
rents in marinas that are proximate to the moorings. This provides a ratio of the "mooring" rents
as compared to "slip" rents in the same market, which is an option for a boat owner. Several
harbors along the California coast have marinas and mooring fields that are owned and managed
by the municipality; however, there are a limited number of harbors that offer "City Owned
moorings" that include the mooring tackle and maintenance of the tackle in the lease rate. With
the exception of Lido Isle, no other location was uncovered that offer a shore mooring with the
tackle included.
These harbors reflect a price per linear foot of mooring to slip ratio (mooring $/LF -:- slip $/LF)
between approximately 14- and 50-percent. These include: Pillar Point (±47%); Monterrey (±26%
to +31%) and Morro Bay (±20% to +38%). The ratio ("Mooring to Slip Ratio") is based on
monthly rent per linear foot for the mooring length compared to a similar length slip.
As set forth above, the Lido Isle Community Association leases onshore moorings to their
residents. They also have a small community marina that has 18-foot slips that are leased on the
same terms as the onshore moorings and the slip rates were increased at the same time as the
mooring rates. The lease rate for an 18-foot slip at the community marina is $4,878.12 annually,
which equates to $406.51 per month, or $22.58 per linear foot per month. They also offer 21-, 26-
and 36-foot slips; however, using the same mooring/slip length is judged to be more relevant as
the slip fees increase based on vessel length. The mooring to slip ratio for 18-foot moorings/slips
on Lido Isle is calculated as follows:
Monthly Mooring Rent - $/LF: $ 5.85
Monthly Slip Rent - $/LF: -:- $22.58
Mooring to Slip Ratio: 0.2591
The LICA mooring to slip ratio is 25.91-percent, indicating that an onshore mooring rents for
25.91-percent of a similar sized marina slip. This ratio has been consistent on Lido Isle for the
past few years
In San Diego Harbor, there are several marinas in that are proximate to the four mooring fields
that are managed by the San Diego Mooring Company. The rates for the moorings range from
$128.17 per month to $157.07 per month, which equates to a range from $2.37 to $4.92 per linear
foot. A survey of the five most proximate marinas indicates they provide slips from 25- to 100-
linear feet, with current slip rates ranging from $20.61 to $60.00 per linear foot, with a weighted
average of $26.35 per linear foot. The mooring to slip ratio based on the most proximate marinas
is between approximately 9- and 18.7-percent, which is calculated as follows:
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Lauren Wooding-Whitlinger
August 2, 2023
Page 11
Monthly Mooring Rent - $/LF: $ 2.37 $ 4.92
Monthly Slip Rent - $/LF: -:- $26.35 -:- $26.35
Mooring to Slip Ratio: 0.0899 0.1867
The operator noted that adjusting the mooring rates requires Port District approval and they have
not increased since 2007/08 and the ratio reflects that the slip rents have been increased to reflect
market demand; therefore, the ration is skewed as the mooring rates do not reflect the current
market rental rates. The operator is in discussions with the Port to increase the mooring rates to
an average of 55-percent of the slip rates in the surrounding marinas. This Mooring to Slip Ratio
is judged to reflect the extreme lower limit of the range.
Using the mid -point for the mooring rent per linear foot, the mooring to slip ratio for the seasonal
mooring program in Monterey Harbor is between 26.5- and 31.2-percent, which is calculated as
follows:
Slip/Mooring Length
Under 30'
30'- 40'
41 % 45'
Monthly Mooring Rent - $/LF:
$ 4.46
$ 5.18
$ 5.19
Monthly Slip Rent - $/LF:
-:- $16.80
-:- $17.78
-:- $16.62
Mooring to Slip Ratio:
0.2655
0.2913
0.3123
The mooring to slip ratio based on the information for Morro Bay reflects a ratio between 20.5-
and 38.4-percent, which is calculated as follows:
Monthly Mooring Rent - $/LF:
Monthly Slip Rent - $/LF:
Mooring to Slip Ratio:
$ 5.50 $10.31
- - $26.82 - - $26.82
0.2051 0.3844
As noted, San Mateo County discontinued its mooring program; however, the information is still
instructive in the analysis. The mooring to slip ratio based on the information for Pillar Point
Harbor reflects a ratio of 47.2-percent ($5.35/LF -:- $11.33/LF).
The market data uncovered indicates that the ratio of mooring rates to slip rates ranges from
approximately 9- to 47-percent. It should be noted that the ratio for the onshore mooring at Lido
Isle is within the range reflected by the offshore moorings. The ratios are summarized in the
following table.
Location
Mooring Rates
Slip Rates
Ratio(s)
Lido Isle
$5.85
$22.58
25.91%
San Diego Mooring
$2.37
$26.35
8.99%
$4.92
$26.35
18.67%
Monterey
$4.46
$16.80
26.55%
$5.18
$17.78
29.13%
$5.19
$16.62
31.23%
Morro Bay
$5.50
$26.82
20.51%
$10.31
$26.82
38.44%
Pillar Point
$5.35
$11.33
47.2%
In the final analysis, primary weight is placed on the ratios reflected by Lido Isle, Monterey, Morro
Bay, with secondary emphasis placed on the San Diego Mooring Company and Pillar Point. On
the basis of the market data presented, I have concluded that a ratio of 30.0-percent should be
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Lauren Wooding-Whitlinger
August 2, 2023
Page 12
applied to the slip rate for similar length slips to estimate the Fair Market Rent for the "City Owned
Moorings."
The "City Owned Moorings" range in length from 18-feet of the onshore moorings and 30 to 95
feet for the offshore moorings.
The four onshore moorings are 18 linear feet and the following table is a summary of the slip rates
for similar sized slips (under 22-feet) at generally comparable marinas throughout Newport
Harbor, based on a survey completed in conjunction with this assignment. The following table is
a summary of the marina slip rates for slips 22-feet and under that are judged to be relevant to the
"Ratio" analysis of the onshore "City Owned Moorings".
Marina
Length
Rent $/LF
Balboa Yacht Basin
20'
$32.23
28' Street Marina
20'
$35.00
Newport Dunes Marina
20'
$48.00
Ba side Village Marina
12' - 19'
$29.00
Lido Yacht Anchorage
6' - 19'
$28.00
Port Calypso
18' - 22'
$37.50
Average
Median
$34.96
$33.62
On the basis of the above, I have concluded that a slip rate of $33.00 per linear foot is appropriate
in the ratio analysis for the onshore moorings. The calculation of the Fair Market Rent for the
onshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$33.00
Mooring Size — Linear Feet:
x 18 LF
Total Monthly Slip Rent:
$594.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$178.20
Mooring Size — Linear Feet:
-:- 18 LF
Monthly Fair Market Rent - $/LF:
$9.90
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the
onshore "City Owned Moorings," is $178.20, or $9.90 per linear foot.
The analysis includes a single, 30-foot offshore mooring that has an interior orientation. The
following table is a summary of the marina slip rates that are judged to be relevant to the "Ratio"
analysis of the 30-foot offshore "City Owned Moorings".
Marina
Length
Rent $/LF
Balboa Yacht Basin
31'
$37.29
281 Street Marina
30'
$35.00
Newport Dunes Marina
30'
$53.00
Ba side Village Marina
30' - 32'
$32.00
Lido Yacht Anchorage
30' - 34'
$37.00
Port Calypso
25' - 30'
$31.50
Newport Marina
32'
$49.30
Average
Median
$39.30
$37.00
Lauren Wooding-Whitlinger
August 2, 2023
Page 13
On the basis of the above, I have concluded that a figure of $38.00 per linear foot is applicable to
the ratio analysis for the 30-foot offshore moorings. The calculation of the Fair Market Rent for
the 30-foot offshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$38.00
Mooring Size — Linear Feet:
x 30 LF
Total Monthly Slip Rent:
$1,140.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$342.00
Mooring Size — Linear Feet:
-:- 30 LF
Monthly Fair Market Rent - $/LF:
$11.40
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the 30-
foot offshore "City Owned Moorings", is $342.00, or $11.40 per linear foot.
The analysis includes a single, 40-foot offshore mooring that has an interior orientation. The
following table is a summary of the marina slip rates that are judged to be relevant to the "Ratio"
analysis of the 40-foot offshore "City Owned Moorings".
Marina
Length
Rent $/LF
Balboa Yacht Basin
40'
$50.09
281 Street Marina
40'
$38.00
Newport Dunes Marina
40'- 45"
$76.00
Ba side Village Marina
40' - 45'
$41.00
Lido Yacht Anchorage
40' - 49'
$52.00
Port Calypso
40' - 45'
$43.50
Newport Marina
40'
$58.65
Average
Median
$51.32
$50.09
On the basis of the above, I have concluded that a figure of $50.00 per linear foot is applicable to
the ratio analysis for the 40-foot offshore moorings. The calculation of the Fair Market Rent for
the 40-foot offshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$50.00
Mooring Size — Linear Feet:
x 40 LF
Total Monthly Slip Rent:
$2,000.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$600.00
Mooring Size — Linear Feet:
-:- 40 LF
Monthly Fair Market Rent - $/LF:
$15.00
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the 40-
foot offshore "City Owned Moorings", is $600.00, or $15.00 per linear foot.
The analysis includes three, 50-foot offshore moorings, two with an interior orientation and one a
perimeter orientation. The following table is a summary of the marina slip rates that are judged to
be relevant to the "Ratio" analysis of the 50-foot "City Owned Moorings".
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Lauren Wooding-Whitlinger
August 2, 2023
Page 14
Marina
Length
Rent $/LF
Balboa Yacht Basin
50,
$60.59
Newport Dunes Marina
46' & u
$91.00
Ba side Village Marina
50' & u
$45.00
Lido Yacht Anchorage
50' - 59'
$61.00
Port Calypso
50' - 60'
$45.50
Average
Median
$60.62
$60.59
On the basis of the above, I have concluded that a figure of $60.00 per linear foot is applicable to
the ratio analysis for the 50-foot offshore moorings. The calculation of the Fair Market Rent for
the 50-foot offshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$60.00
Mooring Size -- Linear Feet:
x 50 LF
Total Monthly Slip Rent:
$3,000.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$900.00
Mooring Size - Linear Feet:
-:- 50 LF
Monthly Fair Market Rent - $ALF:
$18.00
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the 50-
foot offshore "City Owned Moorings", is $9000.00, or $18.00 per linear foot.
The analysis includes four, 60-foot offshore moorings. One is located on the corner of the mooring
field, two have a perimeter orientation and one has an interior orientation. The following table is
a summary of the marina slip rates that are judged to be relevant to the "Ratio" analysis of the 60-
foot "City Owned Moorings".
Marina
Length
Rent $/LF
Balboa Yacht Basin
60'
$70.65
Newport Dunes Marina
46' & u
$91.00
Ba side Village Marina
50' & u
$45.00
Lido Yacht Anchorage
60' - 69'
$66.00
Port Calypso
50' - 60'
$45.50
Newport Marina
62'
$82.00
Average
Median
$66.69
$68.33
On the basis of the above, I have concluded that a figure of $67.50 per linear foot is applicable to
the ratio analysis for the 60-foot offshore moorings. The calculation of the Fair Market Rent for
the 60-foot offshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$67.50
Mooring Size - Linear Feet:
x 60 LF
Total Monthly Slip Rent:
$4,050.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$1,215.00
Mooring Size - Linear Feet:
-:- 60 LF
Monthly Fair Market Rent - $/LF:
$20.25
4-30
Lauren Wooding-Whitlinger
August 2, 2023
Page 15
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the 60-
foot offshore "City Owned Moorings", is $1,215.00, or $20.25 per linear foot.
The analysis includes a single 95-foot offshore mooring that has a perimeter orientation. There
are a limited number of 95-foot slips in Newport Harbor and the following table is a summary of
the marina slip rates that are judged to be relevant to the "Ratio" analysis of the 95-foot "City
Owned Moorings".
Marina
Len th
Rent $/LF
Balboa Yacht Basin
75'
$80.85
Newport Dunes Marina
46' & u
$91.00
Ba side Village Marina
50' & u
$45.00
Lido Yacht Anchorage
80' - 89'
$75.00
Port Calypso
50' - 60'
$45.50
Newport Marina
62'
$82.00
Average
Median
$69.89
$77.93
On the basis of the above, I have concluded that a figure of $75.00 per linear foot is applicable to
the ratio analysis for the 95-foot offshore mooring. The calculation of the Fair Market Rent for
the 95-foot offshore moorings, using the ratio analysis, is as follows:
Comparable Slip Rate Rent - $/LF:
$75.00
Mooring Size - Linear Feet:
x 95 LF
Total Monthly Slip Rent:
$7,125.00
Slip to Mooring Ratio:
x 0.30
Monthly Fair Market Rent - Total:
$2,137.50
Mooring Size - Linear Feet:
-:- 95 LF
Monthly Fair Market Rent - $/LF:
$22.50
On the basis of the market data and analysis presented, the monthly Fair Market Rent, for the 95-
foot offshore "City Owned Moorings", is $2,137.50, or $22.50 per linear foot.
Reconciliation
The final step of the appraisal process is to reconcile the value conclusions indicated by the two
methods utilized in formulating the value estimate. The reconciliation of the monthly Fair Market
Rent indicated for each length mooring, as of the date of value, is as follows:
Length
(LF)
Mooring
Type
Comparable
Rent
Analysis
Ratio
Anal sis
Monthly Fair
Market Rent Conclusion
$/LF
Total
$/LF
Total
18
Onshore
$5.85 - $11.48
$9.90
$178.20
$9.00
$162.00
30
Offshore
$13.00 - $15.00
$11.40
$342.00
$13.00
$390.00
40
Offshore
$14.00 - $17.00
$15.00
$600.00
$15.00
$600.00
50
Offshore
$16.00 - $19.00
$18.00
$900.00
$17.50
$875.00
60
Offshore
$18.00 - $21.00
$20.25
$1 215.00
$20.00
$1 200.00
95
Offshore
1 $20.00 - $23.00
$22.50
$2,137.50
$22.00
$2 090.00
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Lauren Wooding-Whitlinger
August 2, 2023
Page 16
Conclusion
Based upon the work undertaken and my experience as a real estate analyst and appraiser, I have
formed the opinion as of the 2nd day of August 2023, subject to the Assumptions and Limiting
Conditions contained in this report, that the individual "City Owned Moorings" have the following
monthly Fair Mart Rent:
Mooring
Number
Length
(LF)
Mooring
Type
Monthly Fair
Market Rent
Conclusion
Mooring
Number
Length
(LF)
Mooring
Type
Monthly Fair
Market Rent
Conclusion
$/LF Total
$/LF
Total
A-072
30
Offshore
$13.00
$390.00
H-031
50
Offshore
$17.50
$875.00
A-094
95
Offshore
$22.00
$2 090.00
H-081
60
Offshore
$20.00
$1 200.00
C-032
50
Offshore
$17.50
$875.00
J-0211
60
Offshore
$20.00
$1 200.00
C-034
50
Offshore
$17.50
$875.00
N-062A
18
Onshore
$9.00
$162.00
C-036
60
Offshore
$20.00
$1 200.00
S-065
18
Onshore
$9.00
$162.00
C-042
40
Offshore
$15.00
$600.00
S-135B
18
Onshore
$9.00
$162.00
F-014
60
Offshore
$20.00
$1 200.00
W-017
18
Onshore
$9.00
$162.00
Certification
To the best of my knowledge and belief, I certify that:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions and conclusions.
I have no present or prospective interest in the property that is the subject of this
report, and have no personal interest or bias with respect to the parties involved.
I have performed no services, as an appraiser or in any other capacity, regarding
the property that this the subject of this report within the three-year period
preceding acceptance of this assignment.
I have no bias with respect to the property that is the subject of this report or to the
parties involved in the assignment.
My engagement in this assignment was not contingent upon developing or
reporting predetermined results.
My compensation is not contingent upon the reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value
estimate, the attainment of a stipulated result, or the occurrence of a subsequent
event.
The reported analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute, which
include the Uniform Standards of Professional Appraisal Practice.
The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
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Lauren Wooding-Whitlinger
August 2, 2023
Page 17
I have made a personal inspection of the property that is the subject of this report.
No one provided significant professional assistance to the person signing this
report.
In accordance with the USPAP Competency Provision, I certify that I have the
knowledge and experience to complete this assignment and have appraised this
property type before.
Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of
the Appraisal Institute. In furtherance of the aims of the Institute to develop higher standards of
professional performance by its Members, the appraisers may be required to submit authorized
committees of said Institute copies of this report and any subsequent changes or modifications
thereof.
The Appraisal Institute conducts a voluntary program of continuing education for its designated
members. MAI's who meet the minimum standards of this program are awarded periodic
educational certification. As of the date of this report, I have completed the requirements under
the continuing education program of the Appraisal Institute.
Respectfully submitted,
, MAI
aiser No. AGO03143
4-33
Lauren Wooding-Whitlinger
August 2, 2023
Page 18
Attachment A — Assumptions & Limiting Conditions
4-34
Assumptions and Limiting Conditions
The analyses and opinions in this report are subject to the following assumptions and limiting
conditions:
COVID-19
The outbreak of COVID-19, commonly referred to as the coronavirus, has caused significant
disruption of the financial markets, both in the United States and worldwide. Because of the
rapidly changing environment, market participants (buyers, sellers, brokers, lenders, appraisers,
tenants) in the real estate market have yet to formulate their opinions on the impact the virus and
related stay-at-home orders, business closures and social distancing recommendations, in making
their real estate investment decisions. I have relied on the economic trends and comparable sale
transactions, which occurred during the global pandemic, in this analysis. In the short-term it is
very possible that there may be a significant slowdown in real estate transaction activity, which
may impact pricing, return requirements and investment expectations. In addition, it may have an
impact on operating expenses and occupancy levels. Only time will reveal how this pandemic will
affect property value and the long-term impact on pricing cannot be predicated at this time and
will depend on the length and severity of the global pandemic. I reserve the right to make such
adjustments to the analysis, opinions and conclusions set forth in this report as may be required by
consideration of additional data or more reliable data that may become available.
Extraordinary
I have not been provided a survey of the induvial mooring tackle and all tackle is assumed to be in
good working order and the overall physical characteristics are generally similar to the tackle
provided at the various jurisdictions. I reserve the right to make such adjustments to the analysis,
opinions and conclusions set forth in this report as may be required by consideration of additional
data or more reliable data that may become available.
General
No investigation of title to the property has been made, and the premises are assumed to be free
and clear of all encumbrances, leases, use restrictions, easements, cases or actions pending, except
as specifically discussed in this report. Title is assumed to be good and marketable, and that the
property is under responsible ownership, competent management and available for its highest and
best use.
No survey, legal, or engineering analysis of this property has been made by the appraiser. I assume
no responsibility for any condition not readily observable from the customary inspection of the
premises, and that there are no hidden or unapparent conditions of the property, subsoil or
structures that render it more or less valuable, except as noted herein.
The distribution, if any, of the total valuation in this report between land and improvements applies
only under the stated program of utilization. The separate allocation for land and buildings must
not be used in conjunction with any other appraisal and is invalid if so used.
The maps, plats, photographs, and exhibits included herein are for illustration only, as an aid in
visualizing matters discussed within the appraisal. They should not be considered as surveys nor
relied upon for any other purpose, nor should they be removed from, reproduced, or used apart
from this report.
I assume no responsibility for economic or physical factors which may affect the opinions herein
stated which may occur at some date after the date of value. I reserve the right to make such
adjustments to the analysis, opinions and conclusions set forth in this report as may be required by
consideration of additional data or more reliable data that may become available.
4-35
Information contained in this appraisal has been gathered from sources, which are believed to be
reliable, and where feasible, has been verified. No responsibility is assumed for the accuracy of
information supplied by others.
No opinion is expressed as to the value of sub -surface oil, gas, or mineral rights, or whether the
property is subject to surface entry for the exploration or removal of such materials except as
expressly stated.
The property is appraised assuming it to be in full compliance with all applicable federal, state,
and local environmental regulations and laws, unless otherwise stated.
The property is appraised assuming that all applicable zoning and use regulations and restrictions
have been complied with, unless otherwise stated.
The property is appraised assuming that all required licenses, certificates of occupancy, consents,
or other legislative administrative authority from any local, state, or national government or private
entity or organization have been or can be obtained or renewed for any use on which the value
estimate contained in this report is based, unless otherwise stated.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser
has not made a specific compliance survey and analysis of this property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property, together with a detailed analysis of the requirements of the
ADA, could reveal that the property is not in compliance with one or more of the requirements of
the Act. If so, this fact could have a negative effect upon the value of the property. Since the
appraiser has no direct evidence relating to this issue, possible noncompliance with the
requirements of the ADA in estimating the value of the property has not been considered.
Unless otherwise stated in this report, the appraiser did not observe the existence of hazardous
material, which may or may not be present on the property. The appraiser has no knowledge of
the existence of such materials on the property. The appraiser, however, is not qualified to detect
such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation,
or other potentially hazardous materials may affect the value of the property. The value estimate
is predicated on the assumption that there is no material on or in the property that would cause a
loss in value. No responsibility is assumed for any such condition, or for any expertise or
engineering knowledge required to discover them. The client is urged to retain an expert in this
field, if desired. If the client is aware or becomes aware of any conditions, the appraiser should be
consulted immediately to assess the impact, if any, upon the market value.
The appraiser reserves the right to make such adjustments to the valuation herein reported, as may
be required by consideration of additional data or more reliable data that may become available.
No opinion is intended to be expressed, or implied, for matters, which require legal expertise or
specialized investigation or knowledge beyond that customarily employed by real estate
appraisers.
I shall not be required, by reason of this appraisal, to give testimony or to be in attendance in court
or any governmental or other hearing with reference to the property without prior arrangements
having first been made with me relative to such additional employment.
Possession of this report, or a copy thereof, does not carry with it the right of publication. It may
not be used for any purpose by any person other than the party to whom it is addressed without the
written consent of the appraisers. I do not authorize out of context quoting, nor partial reprinting
of the report. In the event the report is placed in the hands of a third party, it is requested that such
party be made cognizant of any and all limiting conditions resulting in the basis of my employment
and the discussions thereto, as well as those set forth herein.
4-36
The submission of this report constitutes the completion of the service authorized. It is submitted
upon the condition that the client will provide the appraiser customary compensation relative to
any subsequent required deposition, conferences, additional preparation or testimony.
The appraiser respectfully requests that neither all nor part of the contents of this report shall be
disseminated to the public through advertisement, public relations, news, sales, or other media,
without written consent and approval of the author, particularly the valuation conclusions, the
identity of the appraiser, or any reference to the Appraisal Institute or the MAI designation.
In the event the appraiser is subpoenaed for a deposition, judicial or administrative proceeding,
and is ordered to produce the appraisal report and file, the appraiser will immediately notify the
employer.
It shall be the responsibility of the employer to obtain a protective order.
The liability of Netzer & Associates and the appraiser responsible for this report is limited to the
client only and to the fee actually received by the appraiser. Further, there is no accountability,
obligation or liability to any third party. If this report is placed in the hands of anyone other than
the client, the client shall make such party aware of all limiting conditions and assumptions of the
assignment and related discussions. The appraiser is in no way responsible for any costs incurred
to discover or correct any deficiencies of any type present to the property -- physical, financial,
and/or legal.
It is agreed that the appraiser is not a necessary party in any inquiry or judicial proceedings. If
called upon to testify in any litigation or other proceeding arising out the duties in this matter, and
if I am compelled to incur court costs, attorney's fees or other out-of-pocket expenses in connection
with court proceedings, such costs or expenses, together with the appraiser's usual hourly per diem
applicable for study, preparation, testimony or travel will be paid by the party (or parties) who acts
to bring any suit requiring a judicial proceeding.
Any dispute or claim made with respect to this report shall be submitted to and resolved in
accordance with the rules of the American Arbitration Association for arbitration, and the decision
of the Association shall be binding. All appraisal services, pursuant to this report, shall be deemed
to be contracted for and rendered in Orange County, California, and any arbitration or judicial
proceedings shall take place in Orange County, California.
The signatory of this appraisal report is a member of the Appraisal Institute. The Bylaws and
Regulations of the Institute require each member to control the use and distribution of each
appraisal report signed by such member. Therefore, except as hereinafter provided, the party for
whom this appraisal report was prepared may not distribute copies of this appraisal report, in its
entirety, without the written consent of the signatory of this report. The report and parts thereof
and any additional material submitted, may not be used in any prospectus or printed material used
in conjunction with the sale of securities or participation interests in any Public Offering as defined
under US Security laws. Further, neither all nor any part of this appraisal report shall be
disseminated to the general public by the use of advertising media, public relations media, news
media, sales media, or other media for public communication without the prior written consent of
the signatory of this appraisal report.
4-37
Lauren Wooding-Whitlinger
August 2, 2023
Page 19
Attachment B — Marina Survey
RM
MARINA SURVEY SUMMARY
JULY/AUGUST 2023
Data No.
Slip Length
Rental Range
Name
Total
Occupancy
(range)
Monthly Rent
Location
Slips
Percent
Linear Feet
$/Linear Foot
1/
Balboa Yacht Basin
181
100%
20'
$32.23
829 Harbor Island Drive
25'
$32.38
Newport Beach
31'
$37.29
32'
$40.49
34'
$41.02
35'
$42.59
37'
$44.34
40'
$50.09
45'
$51.27
50'
$60.59
60'
$70.65
75'
$80.95
2/
281 Street Marina
21
95.2%
20'- 40'
$35.00 - $38.00
2800 Newport Boulevard
Newport Beach
3/
Newport Dunes Resort & Marina
442
100%
20' - 29'
$48.00* - $53.00
101 N. Bayside Drive
30' - 33'
$53.00* - $58.00
Newport Beach
34' - 39'
$68.00
40' - 45'
$76.00
46' & U
$91.00
4/
Bayside Village Marina
220
100%
12' - 19'
$29.00
300 E. Coast Highway
20' - 24'
$29.00
Newport Beach
25' - 29'
$28.00
30' - 32'
$32.00
33' - 39'
$35.00
40' - 45'
$41.00
50' & Up
$45.00
Super Slips
$45.00
Dbl Loaders
$45.00
5/
Lido Yacht Anchorage
251
100%
6' - 19'
$28.00
151 Shipyard Way, Ste. 7
20' - 29'
$32.00
Newport Beach
30' - 34'
$37.00
35' - 39'
$45.00
40' - 49'
$52.00
50' - 59'
$61.00
60' - 69'
$66.00
70' - 79'
$69.00
80' - 89'
$75.00
110' - 135'
$77.00
4-39
MARINA SURVEY SUMMARY (continued)
JULY 2023
Data No.
Slip Length
Rental Range
Name
Total
Occupancy
(range)
Monthly Rent
Location
Sli s
Percent
Linear Feet
$/Linear Foot
6/
Port Calypso
50
'AND
18' 22'
$675/Month
2633 W. Coast Highway
25' — 30'
$31.50
Newport Beach
34' — 35'
$35.50
40' — 45'
$43.50
50' — 60'
$45.50
7/
Newport Marina
51
100%
26'
$42.00
2888 Bayshore Drive
32'
$49.30
Newport Beach
40'
$58.65
42'
$58.65
62'
$82.00
..0
Lauren Wooding-Whitlinger
August 2, 2023
Page 20
Attachment C — Qualifications
4-41
QUALIFICATIONS
of
James B. Netzer, MAI
Professional Back rg ound
Prior to forming Netzer & Associates, he was associated for over three years with Urban Pacific
Services Corp. Actively engaged as a real estate analyst, appraiser and consultant since 1987.
Principal of the appraisal and consulting firm of Netzer & Associates with offices at:
170 E. Seventeenth Street, Suite 206
Costa Mesa, California 92627
Educational Activities
Bachelor of Arts in Liberal Studies with a Concentration in Economics, California State University,
Long Beach, 1986.
Has successfully completed the following courses sponsored by the American Institute of Real Estate
Appraisers and the Appraisal Institute:
A.I.R.E.A Course I A-1: Principles of Real Estate Appraisal
A.I.R.E.A Course lA-2: Basic Valuation Procedures
A.I.R.E.A Course 1 B-A: Capitalization Theory and Techniques, Part A
A.I.R.E.A Course 1B-B: Capitalization Theory and Techniques, Part B
A.I.R.E.A Course SPP: Standards of Professional Practice
A.I. Course 2-1: Case Studies in Real Estate Valuation
A.I. Course 540: Report Writing and Valuation Analysis
A.I. Course 550: Advanced Applications
Has successfully completed multiple classes to meet the continuing education requirements of
Appraisal Institute, California Office of Real Estate Appraisers and Bureau of Real Estate.
Professional Affiliations & State Licenses
Member of the Appraisal Institute - MAI Designation
State of California - Certified General Real Estate Appraiser - Certificate No. AGO03143
State of California - Real Estate Broker License - License No. 01185682
Court Qualification
Qualified as an expert witness in the Superior Courts of Orange, Los Angeles, San Bernardino and
San Diego Counties, U.S. Bankruptcy Court — Los Angeles Division.
Teaching Experience
Orange Coast College - Adjunct Professor (retired) - Business 140 "Real Estate Appraisal Principles"
4-42
Seminar & Panel Presentations
Los Angeles County Bar Association — Real Property Division: Overholtzer Overhauled, An Update
on Damages, Appraisals and Interim Loss under Title Insurance Policies, September 2013
Scope of Experience
During the period in which Mr. Netzer has been engaged as a real estate appraiser and analyst, he has
been involved in most aspects of the field having completed assignments for multiple purposes,
including: estate planning; bankruptcy; conflict -of -interest analysis (Political Reform Act of 1974);
construction defects litigation; soil subsidence; dissolution of marriage; ground lease re -valuation;
leasehold & sub -leasehold valuation; property tax appeals; lease and ground lease arbitration;
easement/access/encroachment/title disputes (based on Overholtzer v. Northern Counties Title); soils
contamination litigation; mortgage lending; construction financing; portfolio valuation; market and
feasibility analysis; fractional interest valuation; and, due diligence.
He has experience appraising the following property types:
Vacant Land
Residential lots, sub -division sites, condominium sites, commercial and industrial sites, mountainous
acreage, raw acreage, mitigation land (Delhi Sands Flower Loving Fly, Stephens Kangaroo Rat &
Open Space).
Residential
Single-family residences, condominiums, townhomes, planned unit developments, multi -family
units, apartment buildings, mobile home parks, mobile home coaches, proposed and existing sub-
divisions and senior housing/memory care projects.
Commercial
Office buildings and condominiums, medical office buildings and condominiums, restaurant
buildings, retail centers, neighborhood shopping centers, community centers, commerce centers,
congregate care facilities, parking structures, golf courses, mixed -use developments, auto dealerships
and gas stations.
Industrial
Manufacturing and warehouse buildings, distribution facilities, multi -tenant buildings, condominium
developments and units, mini -storage facilities.
Special Use
Commercial and residential tidelands, boat harbors, auto ferry, bait barge, marinas, gas docks,
mooring fields, commercial piers, municipal piers/docks, civic center, fire stations, police stations,
emergency communication facilities, temporary construction easements, steel fabricating plant and
car wash facilities.
4-43
PARTIAL LIST OF CLIENTS
ATTORNEYS. LAW FIRMS & ACCOUNTANTS
Barton Klugman & Oetting
Law Offices of Erik B. Michelsen
Best, Best & Krieger
Law Offices of Michael Leight
Boss Law Firm APLC
Law Offices of Steven E. Briggs
Bremer, Whyte, Brown & O'Meara
Leech & Associates
Browne & Woods LLP
Loeb & Loeb, LLC
Bryan Cave LLP
Lynberg & Watkins
Burd & Naylor
Manning & Kass, Ellrod, Ramirez, Trester
Cozen O'Connor
McDermott, Will & Emory
Davis Law APC
Millar, Hodges & Bemis
Friedman, Stroffe & Girard, PC
Palmieri, Tyler, Wiener, Wilhelm & Waldron
Gibson, Dunn & Crutcher
Richard Shaffer (Court Appointed Receiver)
Goldstein & Ward
Rubin & Eagan
Greines, Martin, Stein & Richland LLC
Samuels, Green & Steel, LLP
Harbin & McCarron
Severson & Werson
Hart King
Shulman Bunn LLP
Hart, King & Coldren
Songstad, Randall, Coffee & Humphrey
Jackson Tidus
Stradling, Yocca, Carlson & Rauth
Jeffer, Mangels, Butler & Marmaro LLP
Turner & Reynolds
Klein & Wilson
Turner Law Firm
Kushner Carlson
Richard Wildman, Attorney at Law
Landels, Ripley & Diamond
Wolf & Richards
Larsen & Associates
Wright Ford Browning & Young
Latham & Watkins
Wynne, Spiegel & Itkin
LENDING INSTITUTIONS
Bank Midwest, N.A.
GE Capital Investment Advisors
Bank of America
Hawthorne Savings
Bankers Mutual (Berkshire Mortgage)
Huntington National Bank
California Federal Bank
Merrill Lynch Credit Corporation
Citicorp Real Estate, Inc.
Park View Mortgage
Credit Suisse
Strategic Mortgage Services
Comerica Bank
Tokai Bank
Escondido National Bank
Wells Fargo Bank
GOVERNMENTAL AGENCIES
City of Costa Mesa
City of Newport Beach
City of Carson
Costa Mesa Sanitation District
City of East Palo Alto
Federal Deposit Insurance Corporation (FDIC)
City of Glendora
Orange County — Dana Point Harbor
City of Huntington Beach
Resolution Trust Corporation (RTC)
City of Long Beach - Tidelands CID
Securities & Exchange Commission (SEC)
GENERAL CLIENTS
AMRESCO Management, Inc.
Monarch Bay Land Association
Arnold Construction
Newport Sports Collection Foundation
Balboa Yacht Club
North American Title Insurance Company
The Boy's Republic
O.C. Interfaith Shelter
Capital Guardian Trust
Old Republic Title
Chicago Title Company
Pulte Home Corporation
Continental Mobile Housing
Real Advantage Title
Decron Management
S & A Properties
Environmental Nature Center
S & S Construction/Shappell Industries
Fidelity National Title Group
St. Clair Company LLC
First American Title Insurance
Santa Fe Pacific Pipeline Partners, L.P.
Great American Insurance Company
Simplex Realty
Hamilton Company
Staples, Inc.
Heritage Point Senior Living
State Farm Insurance
Hornblower Cruises
Stewart Title Guaranty Company
Kinder Morgan Energy Partners
Texaco Refining & Marketing, Inc.
Lee & Associates
Westcor Land Title Insurance Company
Lloyds of London
Western National Properties
/ l l
ATTACHMENT E
Harbor Department
1600 W. Balboa Blvd.
Newport Beach, California 92663
949-270-8159
Newportharbor.org
Mooring License
Mooring No.
License Fee (monthly): $
Prorated License Fee for first month (if applicable): $
Security Deposit: $ (equal to twice License Fee)
Date Issued:
This City of Newport Beach Mooring License ("License") gives the person(s) listed below
(individually and collectively referred to herein as "Licensee") a limited, non-exclusive, revocable, non-
transferable right to occupy the above -listed City mooring ("Mooring"), subject to the terms and conditions
set forth herein.
LICENSEE INFORMATION
Name:
Name:
Residence Address:
Residence Address:
Business Address:
Business Address:
Billing Address:
Billing Address:
Telephone
Home:
Business:
Cell:
Telephone
Home:
Business:
Cell:
E-mail:
E-mail:
Driver's License
State: Number:
Social Security/EIN:
Driver's License
State: Number:
Social Security/EIN:
2. VESSEL INFORMATION
This License gives Licensee the right to secure the vessel identified below ("Vessel") to the Mooring.
Licensee may not secure or tie any other vessel to the mooring, with the exception of a tender. Any
change to the assigned vessel shall require the City's review and approval.
Vessel Name:
Reg. CF/Doc. No.:
Type (Power/Sail):
Builder:
Length Overall (LOA):
Please provide a copy of the current Documentation/Registration for file.
Beam: Draft:
Port/State of Registration:
Legal Owner of Vessel:
(Bank, Lienholder, or other name appearing on evidence of title)
Licensee must be the legal owner of the Vessel, or such owner's registered agent.
Insurance Carrier:
Insurance Agent:
Phone #:
Insurance Policy #:
Expiration Date:
(Please provide a copy of the current insurance certificate for file.)
Licensee shall provide evidence of licensing, registration and insurance coverage for the Vessel and
provide copies of such certificates for the City's files when such coverage or registration are changed or
renewed or at the City's request.
3. TERM
This License shall be valid for a term of one (1) month, plus any partial month if the License term
commences on a date other than the first day of a calendar month. The License is renewable on a
monthly basis, contingent upon the timely payment of the License Fee and any outstanding late fees
and charges, unless the License is sooner terminated. City may terminate this License without cause
and in its sole, absolute discretion by providing Licensee thirty (30) calendar days prior written notice.
4. FEE, SECURITY DEPOSIT, PENALTIES
(a) License Fee. Licensee shall pay the monthly License Fee by the first (1st) day of the month
and a pro -rated License Fee for any first partial calendar month prior to issuance of the
License.
(b) The License Fee is the rate set forth above, which may be adjusted in accordance with the
terms herein.
9 ,,
(c) License Fee Adjustments. Upon not less than thirty (30) calendar days' prior written notice to
Licensee, City may alter, at any time, the amount of the License Fee, the Security Deposit,
the Late Payment Fee, and/or the Returned Check Fee.
(d) Security Deposit. Licensee shall deposit with City an amount equal to twice the License Fee
as security for the faithful performance of Licensee's obligations hereunder ("Security
Deposit"). City may, at its option, claim from the Security Deposit such amounts as are
reasonably necessary to remedy Licensee's monetary defaults hereunder, to repair
damages to the Mooring caused by Licensee or agents of Licensee, exclusive to normal
wear and tear.
(e) In the event the Security Deposit or any portion thereof is applied as provided herein,
Licensee shall deposit with City an amount sufficient to restore the Security Deposit to the
full amount. Restoration of the Security Deposit is a condition prior to any renewal of the
License term.
(f) City may, only to the extent as permitted by law, commingle the Security Deposit with other
funds of Licensee's account with the City. No interest shall accrue or be paid with respect to
the Security Deposit.
(g) Payment shall be made in lawful money of the United States of America and shall be
delivered by mail or in person to the City's Cashier's Office at 100 Civic Center Drive, P.O.
Box 1768, Newport Beach, California 92660, or at any such other place as may be
designated by City in writing from time to time.
(h) Late Payment Fee. Payment that is received later than the fifth (5th) day of the month is
delinquent and shall accrue a late payment fee equal to ten percent (10%) of the License
Fee.
(i) Interest. Delinquent payments shall also bear interest at the rate of ten percent (10%) per
annum from the date they become delinquent until paid in full.
(j) Any other amounts due to the City under this License, except for the Security Deposit, that
are not paid within the time period prescribed shall be subject to a ten percent (10%) late
payment fee and interest at the rate of ten percent (10%) per annum.
(k) If Licensee's account is processed for collections or liens due to late payments, an
additional amount of thirty percent (30%) of the amount due will be incurred by Licensee and
due and owing to City.
(1) City may, at City's sole discretion, require Licensee to enroll in City's Automatic Payment
Processing ("APP") program, or other such automated payment programs utilized by the
City to ensure Licensee's timely payment. If Licensee refuses to enroll in City's APP
program, City may, at City's sole discretion, terminate this License.
(m) Returned Checks. Licensee shall be charged a service fee of Twenty -Five Dollars and
00/100 ($25.00) for the first (1 st) returned check related to any payment made by Licensee
hereunder and a service fee of Thirty -Five Dollars and 00/100 ($35.00) for any additional
returned checks in the same calendar year (collectively, "Returned Check Service
Charges"). Returned Check Service Charges as described hereunder are subject to the
allowable amounts set forth under California Civil Code Section 1719(a)(1) or its successor.
4-47
5. ADMINISTRATION; NOTICE
This Agreement shall be administered by the Harbor Department. The City's Harbormaster or any
successor property management group as appointed in writing by City, at City's sole and absolute
discretion, shall be the duly authorized administer of City Mooring Licenses and shall have the authority
to act for City under this Agreement. The Harbormaster shall represent City in all matters pertaining to
the management of all Licensee agreements for any and all Moorings, and to perform all the rights and
obligations on behalf of City as expressly set forth under this Agreement.
Licensee shall notify the Harbormaster of any change to any of their information provided in this
Agreement within five (5) calendar days after the occurrence of any such change. Notice shall be
provided in writing and sent by mail or in person to the following or at any such other place as may be
designated by City in writing from time to time.
City of Newport Beach Harbormaster
1600 West Balboa Blvd
Newport Beach, CA 92663
6. LICENSE CONDITIONS
(a) This Mooring License Agreement is a limited, personal license for the temporary use of the
mooring location specified herein and is revocable. This Mooring License Agreement does
not create or represent any form of property right or provide any ownership interest in the
underlying tidelands, which are held in trust by the City and owned by the people of the State
of California. (NBMC Section 17.60.040(A),(B)(2)(i))
(b) Mooring licenses may be held only by natural persons. No person may have more than one
mooring license. A mooring licensee is also limited to having no more than one mooring permit
concurrently and the license and permit may not be for the same type of mooring (onshore or
offshore).
(c) Persons named on a jointly -issued license shall have equal rights, obligations and liability and
shall be jointly and severally responsible for compliance with all rules, regulations, and
conditions set forth in the Mooring License Agreement.
(d) Mooring Licensee shall be responsible for payment of all license fees, late fees and interest
charges. The mooring license shall be subject to immediate termination for failure to make
timely payment or payment in full.
(e) Mooring Licensee shall be responsible for payment to repair damage to the Mooring caused
by Licensee or its agents, exclusive to normal wear and tear.
(f) Rental, lease, sub -license, transfer, or assignment of the mooring, including any attempt of
the foregoing, is prohibited.
(g) Mooring Licensee shall not change the assigned vessels without prior City review and
approval.
(h) Mooring Licensee shall be responsible for any towing -related charges associated with the
assigned vessel in violation of the Municipal Code.
/ ;
(i) Mooring Licensee shall provide valid government -issued identification and, upon request of
the Harbormaster, additional documentation to verify the Mooring Licensee's place of
residence, to the satisfaction of the Harbormaster.
Q) Mooring Licensee shall provide and maintain as current for the term of the Mooring License
Agreement, evidence of valid DMV registration, USCG documentation, or other proof of
controlling possessory right in the assigned vessel, all to the satisfaction of the Harbormaster.
(k) Mooring Licensee shall provide and maintain as current proof of insurance coverage, naming
the City as an additional insured, to the satisfaction of the City's Risk Manager, for the
assigned vessel as well as any tender permitted to be maintained at the same mooring.
(1) Mooring Licensee shall provide City written notice of any change in their contact information,
proof of ownership in the assigned vessel, or insurance coverage within five (5) calendar days
of such change.
(m) The Harbormaster, or his designee, may board the assigned vessel at any time to inspect the
condition and operability of the marine sanitation device(s) and/or insert dye tablets to
determine whether those devices are discharging overboard in accordance with applicable
laws.
(n) The City, or its designee, is authorized to move the vessel on the mooring to another location
when deemed necessary by the Public Works Director and/or Harbormaster.
(o) Mooring Licensee shall take any and all necessary action to ensure all elements and parts
associated with the mooring are kept in good condition at all times.
(p) Only one (1) assigned vessel is allowed on a mooring at a time. The vessel shall be maintained
in a safe, operable and seaworthy condition and shall not constitute a public nuisance. The
vessel is subject to inspection by the Harbor Department prior to its assignment to a mooring,
or thereafter upon request of the Harbormaster, to confirm it meets the requirements outlined
in the NBMC. (NBMC Section 17.25.020(H)(2), (3))
(q) Mooring buoys must be clearly marked with the City -assigned mooring number and in
accordance with the requirements for size, specifications, colors, and reflectivity of buoys and
numbering systems. (California Uniform State Waterway Marking System; NBMC Section
17.25.020(G))
(r) The operation of the assigned vessel's mechanical or electrical systems shall not create
excessive noise, odors, vibrations, fumes, discharges or emissions that constitute an impact
on public health and safety. (NBMC Section 17.25.020(H)(3)(g))
(s) Mooring Licensees shall not release or permit to be released into the water or upon the docks
or land by action or inaction, any waste or environmentally objectionable substances including
but not limited to oil, paint and gasoline. If the assigned vessel is equipped with a toilet, a
marine head, or any other permanent or temporary receptacle for human body wastes, then
the vessel must be equipped with a holding tank designed to retain all contents deposited in
the receptacle until such time as the contents can be discharged into a sanitary sewer system
or discharged otherwise in accordance with law. All sewage systems on the assigned vessel
must meet U.S. Coast Guard guidelines and be secured in a manner to prevent discharge in
accordance with federal law while the vessel is moored in Newport Harbor. Mooring Licensee
shall immediately implement necessary clean up and disposal of any waste and shall
immediately report any release to all appropriate government agencies and to the
Harbormaster. Mooring Licensee shall be responsible for the prompt payment of all costs
associated with clean-up and disposal including costs of absorbent pads and booms,
oversight by government agencies and Harbor Department personnel, fines, penalties and
legal fees. If City is not satisfied with Mooring Licensee's corrective actions in response to a
release or discharge City may, at its sole discretion, take any and all action it deems
appropriate, including termination of the Mooring License. Mooring Licensee shall be liable for
all costs and expenses associated with the City's corrective actions, which shall be payable
to the City immediately upon receipt of an invoice from the City. (NBMC Section 17.45.030)
(t) Mooring Licensee shall take any and all necessary action to promptly employ and maintain
appropriate sea lion deterrent measures upon receipt of a notice of violation. (NBMC Section
17.25.020(H)(4))
(u) Mooring Licensee shall jointly and severally defend and indemnify the City and any other
government entity with jurisdiction against any claims or losses arising out of or related to the
use of the mooring.
(v) Spreader lines when used must be visible on the surface by use of floats or other devices or
methods at all times.
(w) Living aboard a vessel is prohibited except as specifically permitted by NBMC Section
17.40.030.
(x) A single tender, meaning a vessel no longer than fourteen (14) feet in overall length that
serves as access to and from the assigned vessel, may be secured to the assigned vessel or
may be secured to the off -shore mooring in the absence of the assigned vessel. The tender
must be secured in such a manner so as not to intrude into the fairway or obstruct other
mooring licensees or mooring permittees.
(y) The Mooring License may be terminated for violation or failure to comply with any of the terms
and conditions outlined herein or applicable provisions of Title 17 of the Newport Beach
Municipal Code.
(z) Extended Vessel Absence. Vacancy or non -occupancy of the mooring by the assigned vessel
of at least fifteen (15) consecutive calendar days shall be deemed abandonment of the
mooring by the Licensee ("deemed abandonment") and shall result in automatic termination
of this License. An absence or vacancy for which Licensee has provided advance written
notice to the Harbormaster shall not be deemed abandonment.
Mooring Licensee(s) acknowledge that they have read the above requirements and the
obligations set forth in the City of Newport Beach Municipal Code and agree to abide thereby.
MOORING LICENSEE:
MOORING LICENSEE:
Date:
Date:
By:
By:
APPROVED:
CITY OF NEWPORT BEACH
Date:
By:
Harbormaster
4-50
ATTACHMENT F
Process for Developing Interest List Initial Issuance and Maintenance of Waitlist
for City Moorings
The objective is to devise a fair process for establishing an interest list from which the
initial licensees will be selected, and then create a process for maintaining a waitlist for
those who were not selected for the limited number of City moorings.
Process for Establishing an Interest List:
1. Announcement: Notify the public about the upcoming release of City moorings in
Newport Harbor, including the limited number and sizes available and the timeline for
applications. The announcement will be on the Harbor Department website and via the
City's social media and press release outlets.
2. Eligibility Criteria: Clearly state the eligibility criteria for individuals interested in
applying for the City moorings which is the same as for mooring permits.
3. Application Period: Set a specific timeframe, such as 90 days, for interested parties to
submit their applications. Ensure that the application process is accessible to all
potential applicants, including providing online and offline options for submitting
applications.
4. Application Form: Develop a comprehensive application similar to that for new mooring
permittees that gathers all relevant information necessary for evaluating eligibility and
appropriate fit for the City moorings.
5. Randomized Selection Process: Once the application period has ended, conduct a
randomized selection process to determine the selected licensees from the interest list.
This can be accomplished using a computerized system or by drawing names from a
physical lottery -style system. This ensures fairness and avoids any bias in the selection
process. The Harbor Department has experience using an automated spreadsheet tool
for achieving randomized selection and would prefer to use this method.
6. Announcement of Winners: Promptly announce the selected winners publicly and by
direct contact with them, emphasizing transparency and fairness in the selection process.
Provide clear instructions to the selected licensees on how to proceed with obtaining their
mooring license.
Process for Maintaining a Waitlist:
1. Notification: Notify all applicants who were not selected as initial licensees that they
have been placed on the waitlist. Clearly communicate the position of each applicant on
the waitlist and consider publishing the updated waitlist on the Harbor Department
website.
2. Regular Updates: Maintain the waitlist as licensees discontinue their agreements.
Communicate the availability of City moorings to qualified entrants on the waitlist and offer
4-51
a limited timeframe, such as 30 days, for executing a new license agreement. Move to
the next eligible entry on the waitlist as appropriate.
3. Application Update Process: Establish a reapplication process for interested parties on
the waitlist. This process should be separate from the initial application process, allowing
waitlisted applicants to update their information, such as desired mooring size and contact
information.
4. Priority Placement: When a City mooring license become available, give priority to
individuals on the waitlist based on their position. Communicate their selection and guide
them through the process of obtaining and confirming their new mooring license.
5. Maintaining the Waitlist: Continue updating and maintaining the waitlist as necessary,
removing individuals who have secured a City mooring license from the list and
accommodating those who wish to be removed voluntarily.
By following these fair processes for establishing an interest list and maintaining a waitlist,
transparency, fairness, and equal opportunities will be ensured for all interested parties
in acquiring a license for a City mooring in Newport Harbor.
4-52
Recommendation Regarding Conversion of
Short-term City Mooring Sub -permits to
Longer -term Mooring Licenses
Allowing for Improved Public Access
August 9, 2023
Presented By: Ira Beer, Harbor Commissioner
4-53
• Current mooring permits are easily transferrable from existing permittees to new permittees in private
transactions. Consequently, these mooring permits have either transferred to family members or
through other private party transactions at considerable expense to the new permittee. Since 2017,
non- family related permit transfer fees between private individuals totaled about $11.4 million.
• A mariner today seeking a mooring permit to gain access to public tidelands requires the mariner (i)
find a mooring permittee looking to sell the permit rights, plus (ii) pay a substantial fee to the existing
mooring permittee. In 2022, there were nine 50-foot permits transferred at an average sale price of
$53,000. Other examples including an 80-foot mooring permit was sold in a private transaction for
$150,000, and an 18-foot mooring was sold in a private transaction for $100,000.
• Current mooring permittees control who has access to moorings over public tidelands through the
transferability of existing mooring permits. This restricts, if not prohibits public access to tidelands that
are held in trust by the City of Newport Beach for the State of California.
4-54
• Establish up to 14 existing City -owned short-term moorings,
and newly created or future acquired City moorings to be part
of a longer -term mooring licensing/rental program.
• The new mooring license (month -to -month auto -renewable)
will allow public access and maintaining a vessel longer -term
over public tidelands than exists today.
• License new moorings to the public at fair market value without
requiring a large capital expense for the right to moor a vessel
over public tidelands
4-55
• New mooring licenses to be available only to natural persons (individuals) and not
intended for commercial use.
• New City Owned moorings will utilize City -owned and maintained mooring weights,
chain, hardware, buoys, etc.
• New mooring licenses will be non-transferrable
• Licensed moorings will always be occupied by the vessel registered to the licensee as
identified in the New City Mooring license agreement.
• New City Mooring licenses will be subject to termination if vacant for more than 15
days. However, the Harbormaster may allow for a grace period if the vacancy is due
to (i) a vessel sale, (ii) vessel repairs or maintenance, or (iii) an extended leave. Any
approved vessel absence or vacancy shall in no event exceed 3 months in the event
of a vessel sale, repairs or maintenance and 6 months for an extended leave.
4-56
Current Mooring Product & Permit
• Transferable at the discretion of the mooring
permittee in family or private transactions.
• No requirement of occupancy with a vessel. A
mooring can remain empty indefinitely.
• No restriction on excess length of chains or lines
• Permittee owned or maintained anchor weights,
chains and buoys
New Mooring License Product
• Non -transferable.
• Allows for fair access of moorings over public tidelands
• Offered initially through a public lottery and
subsequently through a waiting list program like
Balboa Yacht Basin (city -owned marina)
• The mooring must always be occupied with the
licensee owned, registered and assigned vessel,
notwithstanding a grace period for a vessel sale or
loss, repairs and maintenance or an approved
extended leave not to exceed 6-months duration.
• Requirement for spreader lines for safety and
improved navigation for other mariners
• City owned and maintained anchor weights, chains
and buoys per established Newport Harbor Design
Standards.
4-5 7
• The City has adopted a policy to calculate fair market value fees charged for City -owned
slips in Newport Harbor at the Balboa Yacht Basin (BYB)
• The BYB slip rental fees are based upon a reduced average of comparable slip rentals at
several marinas in Newport Harbor. The rental fees for the BYB City -owned slips are
adjusted annually based on the average index of those marinas.
• New City -owned mooring
licensing/rental
fees are proposed to
be based as a percentage
of
the
City -owned
BYB slip
rental
fees and
would
automatically
adjust
annually
under
the
same formula as currently adopted (or as may be amended) by City Council.
• The initial percentage and/or rental fees charged for New City Owned moorings will be
based an independent certified appraisal.
• The recommended percentage of BYB slip fees to be charged for New Public Moorings
based upon the independent appraisal is 30%. The Harbor Commission subcommittee
recommendation is 27%, or 10% below the appraised fair market value rates. 4-58
New City
Owned
Mooring Type
Onshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
LOAfor Slip or
Mooring
18'
3 0'
4 0'
50,
6 0'
7 0'
8 0'+
BYB
Comparable
Average LOA
Slip Rate per
Appraisal
32.23
39.60
50.09
60.59
70.65
74.08
80.95
BYB SI p Rate
Percentage per
Appraisal
27.9%
32.8%
29.9%
28.9%
28.3%
n/a
27.2%
Certified
Appraisal
'Benchmark'
Recommended
Rates as a
Percentage of
BYB SI 1 p Rate
30%
30%
30%
30%
30%
30%
30%
Note 1 - 70' 3Yg slip rate is an estimated rate not a published rate
Note 2 - 80'+BY6 slip rate is based on 75' published rate
Note 3 - N8HC recommended rates are sub -committee recommendations
Newport Beach
Harbor
Commission
Recommended
Rates as a
Percentage of
BYB Slip Rate
27%
27%
27%
27%
27%
27%
27%
Newport Beach
Certified
Harbor
Appraisal
Commission
Stated New City
Recommended
Mooring Fair
New City
Market Rates
Mooring Rates
per Lineal
per Lineal
Foot/Month
Foot/Month
9.00
8.70
13.00
10.69
15.00
13.52
17.50
16.36
20.00
19.08
n/a
20.00
22.00
21.86
4-59
Approve a Recommendation for a City Council Resolution including:
1. Anew mooring license/rental product and agreement allowing for longer -term
mooring rentals to the public for (i) existing city -owned moorings, and (ii) future
moorings that may be acquired or constructed by the City of Newport Beach
2. New guidelines and requirements set forth in a New City Mooring
licensing/rental agreement
3. New fee schedule for the New City Mooring license/rental product
4. Adopt changes to the Municipal Code to accommodate the New City moorings
and license agreement
Discussion Related to New Mooring
Licensing/Rental Program
Question & Answer
Session
for
Harbor Commissioners
Presented by
Ira Beer
Harbor Commissioner
August 9, 2023
Public Comments
Open fOYum
�EwapRr
°k e City of Newport Beach ATTACHMENT H
> s BUDGET AMENDMENT
cq"F°"�sr 2023-24 BA#: 24-032
Department: Harbor
ONE TIME: ❑ `!es ❑ No
Requestor: Paul Blank
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: Aum ahmw Date 1491412-
D COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To incorporate additional revenue estimates from the short-term licensing of City moorings ❑ from existing budget appropriations
❑✓ from additional estimated revenues
❑ from unappropriated fund balance
REVENUES
Fund #
Org
Object Project Description
Increase or (Decrease) S
100
10045451
551034 HARBOR DEPARTMENT - SHORT-TERM MOORING LICENSES
22,306.00
Subtotal
$ 22,306.00
EXPENDITURES
Fund #
Org
Object Project Description
Increase or (Decrease) $
Subtotal
$
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
100
300000
TIDE & SUBMERGED LANDS FUND - FUND BALANCE CONTROL
22,306,00
Subtotall
22,306,00
Fund Balance Change Required
4-63
ATTACHMENT I
STRIKEOUT VERSION
Chapter 17.60
HARBOR PERMITS AND LEASES
Sections:
17.60.010 Public Trust Lands —General.
17.60.015 Application for Harbormaster Permits.
17.60.020 Application for Pier/Mooring Permits or the Lease of Public Trust Lands.
17.60.030 Pier Permits for Noncommercial Piers.
17.60.040
Mooring Permits.
17.60.045
Short -Term Mooring Licenses.
17.60.050
Houseboats.
17.60.060
Public Trust Lands.
17.60.010 Public Trust Lands —General.
A. Applicability. Public trust lands include tidelands, submerged lands, the beds of
navigable lakes and rivers, and historic tidelands and submerged lands that are presently filled or
reclaimed and which were subject to the public trust at any time. The City manages these lands
through a series of permits, franchises and leases. This chapter applies to permits or leases for
public trust lands used for commercial purposes by a person, other than the City, pier permits for
noncommercial piers, and mooring permits.
B. Limits on Uses. Except as provided in subsection (C) of this section, public trust lands
are subject to the Common Law Public Trust, which limits uses to navigation, fishing,
commerce, public access, water -oriented recreation, open space and environmental protection.
C. Exceptions. State legislation has modified public trust restrictions for the historic
tidelands in Beacon Bay, the Balboa Bay Club, and Harbor Island as provided in Section
17.05.080(B).
17.60.015 Application for Harbormaster Permits.
A. Required Forms. Except for applications for marine activities permits filed under Chapter
17.10, applications for permits which pertain to Newport Harbor under the provisions of this title
which are to be issued by the Harbormaster shall be filed with the Harbormaster, in writing, on
forms prescribed by the Harbormaster.
B. Required Materials. Applications shall be accompanied by all materials required by the
prescribed forms, unless specifically waived by the Harbormaster. The Harbormaster may
request additional materials deemed necessary to support the application.
C. Required Signatures. Application for permits issued by the Harbormaster shall be
submitted and signed by the owner, lessee, or agent of the owner of the property affected or by
an authorized agent if written authorization from the owner of record is filed concurrently with
the application.
D. Fees. Applications and renewals shall be accompanied by a fee as established by
resolution of the City Council.
Page l/18
4-64
STRIKEOUT VERSION
17.60.020 Application for Pier/Mooring Permits or the Lease of Public Trust Lands.
A. Required Forms. Except for permits to be filed with the Harbormaster, applications for
permits or leases which pertain to Newport Harbor under the provisions of this chapter shall be
filed in the Public Works Department, in writing, on forms prescribed by the Public Works
Director.
B. Required Materials. Applications shall be accompanied by all plans, maps, and other
materials required by the prescribed forms, unless specifically waived by the Public Works
Director. The Public Works Director may request additional materials deemed necessary to
support the application.
C. Required Signatures. Applications for permits or leases issued by the Public Works
Director may be made by the owner, lessee, or agent of the owner of the property affected. The
application shall be signed by the owner of record or may be signed by the lessee or by an
authorized agent if written authorization from the owner of record is filed concurrently with the
application.
D. Fees. Applications and renewals shall be accompanied by a fee as established by
resolution of the City Council.
E. Tidelands Users. Users of public tidelands, including commercial and noncommercial
users, shall be subject to rental or lease charges reflective of the fair market value related to such
use as established by the City Council with the assistance of an appraisal.
17.60.030 Pier Permits for Noncommercial Piers.
A. Noncommercial Pier Permits. Upon the request of the abutting upland residential
property owner, or lessee or the authorized agent of the owner or lessee and in accordance with
all applicable laws including, but not limited to, Sections 17.35.020(A) and (B), a residential pier
permit shall be issued for up to ten (10) years. The City shall extend the term of any residential
pier permit for up to ten (10) years upon:
1. Permit expiration and the request of the owner or lessee, or the authorized agent of the
owner or lessee; or
2. Upon sale of the abutting upland property and the request of the new owner or lessee, or
the authorized agent of the owner or lessee. The maximum term of any permit issued
hereunder, with extensions, shall be fifty (50) years. After fifty (50) years, the abutting
upland residential property owner, or lessee or authorized agent of the owner shall be
required to apply for a new residential pier permit.
B. Rental Fees. Every owner or permit holder who maintains a pier used for noncommercial
purposes, any part of which extends into public tidelands, shall pay to the City the applicable pier
permit rental fee for such portions of the pier that extend into public tidelands, as established by
City Council resolution.
C. Transfer of Noncommercial Pier Permits.
Page 2 / 18
4-65
STRIKEOUT VERSION
1. Permits for noncommercial piers are issued subject to the condition that any
improvements constructed shall not be sold in whole or part, leased, or transferred without
the prior written consent of the City.
2. Whenever a permittee sells the abutting residential upland property, a request shall be
made to the City to transfer the permit. Forms for this purpose may be obtained from the
Public Works Department. Failure to apply for a transfer within thirty (30) days from the
date that the abutting upland residential property changed ownership will result in an
additional fee as established by resolution of the City Council.
3. Along with the City Manager, the Public Works Director is authorized to approve
transfers to the new owners or long-term lessee of the abutting upland residential property.
4. Prior to the transfer of a pier permit, all harbor structures shall be inspected for
compliance with the City's minimum plumbing, electrical and structural requirements, and
the conditions of the existing permit. All structural deficiencies must be corrected prior to
the transfer of the permit.
5. Noncommercial piers may be rented/leased in whole or in part, by the permittee to a third
party or parties. Such rental/lease shall not be deemed a transfer under this section.
6. The provisions of this section shall not apply to piers, docks or other structures located in
Promontory Bay and in other waters over privately owned land.
17.60.040 Mooring Permits.
A. Permit Required. No person shall place, erect, construct, maintain, use or tie to a mooring
in the waters of Newport Harbor over City -owned or controlled tidelands (i.e., an offshore
mooring) or in the nearshore perimeter of Newport Harbor perpendicular to the shoreline (i.e., an
onshore mooring) without first having obtained a mooring permit from the Harbormaster or
having otherwise complied with this section. A mooring permit is in the nature of license for the
temporary use of a specific location within Newport Harbor.
B. Issuance of Permit —Conditions. The Harbormaster, in furtherance of the tideland grants
to the City, may issue a mooring permit or mooring sub -permit to allow the mooring permittee or
mooring sub-permittee to temporarily use a portion of the waters of Newport Harbor for the
mooring of a vessel if the Harbormaster makes the findings set forth in Section 17.05.140(D)(1).
A mooring permittee may hold up to two mooring permits at any time. A mooring permittee that
held or continues to hold more than two mooring permits prior to May 11, 2017, may continue to
hold the mooring permits until the permits are sold, revoked, or otherwise transferred under this
chapter.
1. Exceptions.
a. The Balboa Yacht Club and the Newport Harbor Yacht Club (collectively, "yacht
clubs") currently hold permits for single point moorings placed within certain mooring
area boundaries established by the City, as noted in subsection (13)(3)(g) of this section.
In addition, the Lido Isle Community Association ("LICA") has permits for onshore
moorings on Lido Isle. These organizations shall hold their respective permits under the
yacht club, or respective organization name, for the moorings identified by the City as
Page 3 / 18
4-66
STRIKEOUT VERSION
under their respective control at the time of enactment of the ordinance codified in this
section. The yacht clubs and LICA shall be solely responsible for managing moorings
under their control and shall be permitted to assign moorings under their control to yacht
club members and members of LICA, respectively. The yacht clubs and LICA shall keep
accurate records of the name and address of the club members and community
association members to which each mooring has been assigned and the corresponding
length of each vessel. The yacht clubs and LICA may not sell or otherwise transfer the
moorings under their control to a third party that is not a member of the yacht club or
LICA. Mooring records and 24/7 emergency contact information shall be provided
annually to the Harbormaster by the yacht clubs and LICA on or before February 1 st.
b. Mooring of a Tender. A single vessel no longer than fourteen (14) feet in overall
length to serve as access to and from the assigned vessel may be secured to the assigned
vessel or may be secured to the offshore mooring in the absence of the assigned vessel.
The vessel must be secured in such a manner so as not to intrude into the fairway or
obstruct neighboring permittees. Notwithstanding the single vessel restriction, permitted
live-aboards may secure up to two vessels no longer than fourteen (14) feet in overall
length to the assigned vessel, to serve as access to and from the assigned live -aboard
vessel.
C. Multiple Vessel Mooring System Program. The Harbormaster may approve a
multiple vessel mooring system in the single anchor mooring areas of Newport Harbor.
An application and applicable fee, established by resolution of the City Council, for a
multiple vessel mooring system shall be submitted in writing to the Harbormaster, who
shall evaluate the application based upon standards established and the application shall
be approved if the Harbormaster makes the findings under the applicable standards and
those set forth in Section 17.05.140(D)(1).
2. Permit Requirements. A mooring permit may be issued to a maximum of two persons
("mooring permittee(s)") who shall be individually and collectively responsible for all
activities related to the mooring permit. The mooring permit shall specify the assigned
mooring location, the mooring length, and assigned vessel information. Mooring
permittee(s) are subject to and shall fully comply with the following conditions:
a. Identify on the permit the full legal name(s), current address(es), current
telephone number(s) and current email address(es), if one exists, of the mooring
permittee(s);
b. Agree to be responsible for permit rent, fees, maintenance and repair of mooring
equipment;
C. The permit for joint ownership moorings shall provide that all parties shall have
equal rights under the permit and shall be held jointly responsible for compliance with
all rules, regulations, and conditions set forth in the mooring permit;
d. Grant permission to the City to temporarily assign the mooring to another vessel
when it is unoccupied through the issuance of a mooring sub -permit;
Page 4 / 18
4-67
STRIKEOUT VERSION
e. Agree to defend and indemnify the City and any other government entity with
jurisdiction against any claims or losses arising out of, or related to the use of, the
mooring permit except where the claim or loss arises from the sub-permittee's damage
of the mooring, or out of the negligence and/or misconduct of a person assigned the
mooring as a mooring sub-permittee under subsections (G) and/or (H) of this section;
f. Provide proof of insurance for the assigned vessel naming the City as an
additional insured to the satisfaction of the Risk Manager;
g. Provide registration or other proof of controlling possessory right in the assigned
vessel, all to the satisfaction of the Harbormaster;
h. Agree to pay fair market value rent, as established by resolution of the City
Council, on a rent schedule established by the Harbormaster, which shall be similar to
the schedule used to collect rent from other tidelands users in Newport Harbor;
i. Agree that the mooring permit does not provide any ownership interest in the
underlying tidelands, which are held in trust by the City and owned by the people of the
State of California;
j. Agree to move the vessel from the mooring to another location when deemed
necessary by the Public Works Director and/or Harbormaster because the vessel has
drifted from its assigned mooring location or to address safety or navigational concerns,
and also to authorize the City or its designee to move the vessel upon the mooring
permittee's failure to do so, at the permittee's expense;
k. Agree to allow the Harbormaster, or his designee, to board the permittee's vessel
at any time to inspect the condition and operability of the marine sanitation device(s)
and/or insert dye tablets to determine whether said devices are discharging overboard in
accordance with applicable laws; and
1. Agree that if the permittee's maximum mooring length is shorter than the
established length of its mooring row by five feet or more then the permittee is subject to
relocation within the same mooring field for the purpose of accommodating mooring
extension requests. The H and J fields shall be considered as one field for the purpose of
relocations. The costs of relocation, including the moving of mooring equipment, shall
be borne by the mooring permittee who requested the mooring length extension.
Example: Permittee A has a mooring length of thirty-five (35) feet, a vessel LOA of
thirty (30) feet, and is in a thirty-five (35) foot row. Permittee B has a mooring length of
thirty (30) feet, a vessel LOA of thirty (30) feet, and is in a thirty-five (35) foot row.
Permittee C has a mooring length of thirty-six (36) feet, a vessel LOA of thirty (30) feet,
and is in a forty (40) foot row. Only Permittee B is subject to relocation.
3. Permittee/Transferee Qualifications. A mooring permit may be held only by natural
persons unless the mooring permit is transferable, in which case it may be held by, or
transferred to, only the following:
a. A natural person(s);
Page 5 / 18
4-68
STRIKEOUT VERSION
b. An executor or administrator carrying out the terms of a will or administering a
probated estate that holds a mooring permit, but only for the period of time prior to
distribution of the estate;
C. An inter vivos trust, family trust, or other similar type of trust estate holding a
mooring permit, so long as all trustors are natural persons and the primary mooring
permittee shall be the trustee of the trust;
d. Immediate family, which shall mean the mooring permittee's spouse and heirs at
law to the second degree of consanguinity;
e. A marine contractor, or marine support service provider, holding a mooring
permit used to provide current or ongoing harbor infrastructure and marine or fishing
services (such as maintenance or dredging);
f. Balboa Island Yacht Club for the purposes of youth education in boating and
marine activities; Kerckhoff Marine Laboratories for the purpose of marine and
oceanographic research; and American Legion Post 291 for the purpose of serving
veterans and their families and supplying them with affordable access to boating and
harbor activities; or similar marine educational entities; or
g. The Balboa Yacht Club, Newport Harbor Yacht Club (collectively "yacht clubs")
and the Lido Isle Community Association —only for those moorings assigned by the
City within certain established mooring areas or locations, prior to January 13, 2011.
These designated mooring areas may not be expanded. The boundaries of all mooring
areas in Newport Harbor are graphically depicted by National Oceanographic and
Atmospheric Administration (NOAA) Chart Number 18754. Yacht clubs shall be
entitled to a maximum number of moorings identified in NOAA Chart Number 18754
that are located within the yacht club's established mooring fields and at a minimum the
current number of moorings assigned to them as of January 13, 2011.
C. Plans and Specifications Required. No mooring permit shall be issued for placing,
erecting, constructing or maintaining a mooring or buoy unless such mooring or buoy is
constructed:
1. In accordance with standard plans and specifications approved by the Harbormaster and
at a location approved by the Harbormaster; or
2. In accordance with other plans and specifications for such mooring or buoy which have
been submitted by the applicant, showing the construction of such proposed mooring or buoy
together with the location thereof, and which meet the requirements established in this
chapter and which have been approved by the Harbormaster.
D. Late Fees. A late charge shall be added to all payments due but not received by the City
by the due date in accordance with Section 17.05.120.
E. Transfer of Permit. Mooring permits are nontransferable, with the exception of mooring
permits that were issued prior to the effective date of Ordinance No. 2023-8 (July 13, 2023),
which shall continue to be transferable unless surrendered or revoked. A mooring permit that is
Page 6 / 18
4-69
STRIKEOUT VERSION
transferable may only be transferred one time in any twelve (12) month period, unless transferred
to a member of the permittee's immediate family.
F. Procedures for Transfers. Permits shall not be transferred without the prior written
approval of the Harbormaster. The Harbormaster may approve the transfer of a mooring permit
under the procedures set out below:
1. The mooring permittee(s) (or, if the permittee is deceased or incapacitated, the transferee)
shall submit to the Harbormaster:
a. A completed mooring transfer form (on the form provided by the Harbormaster);
and
b. Documentation that the proposed new mooring permittee (transferee) qualifies as
a mooring permittee under subsection (13)(3) of this section.
2. If transferee intends to purchase an assigned vessel but does not have title on the assigned
vessel owned by the mooring permittee and transferor at the time of transfer, then:
a. Within sixty (60) days of a transfer, transferee shall submit to the Harbormaster a
copy of a California Department of Motor Vehicles registration or other current
registration (or, in lieu thereof, U.S. Coast Guard documentation of ownership)
documenting transferee's ownership of the assigned vessel or, in the case of an onshore
mooring, a photograph of the assigned vessel if it is not subject to vessel registration
laws. The Harbormaster shall inspect the vessel at its office for compliance with Section
17.25.020(H) before the assignment is approved; or
b. If such documentation is not received by the Harbormaster within the sixty (60)
day period, then the vessel or the mooring may be impounded, and the mooring may be
deemed vacant and assigned pursuant to subsections (G) and (H) of this section.
3. If transferee intends to moor a vessel other than the assigned vessel and does not have
title to the vessel that will be moored at the time of transfer, then:
a. Within sixty (60) days of an approved transfer, the transferee shall notify the
Harbormaster that the assigned vessel has been removed from the mooring and before a
new vessel may be placed on the mooring shall submit to the Harbormaster a copy of a
California Department of Motor Vehicles registration or other current registration (or, in
lieu thereof, U.S. Coast Guard documentation of ownership) documenting transferee's
ownership of the new assigned vessel, or in the case of an onshore mooring, a
photograph of the new assigned vessel if it is not subject to vessel registration laws. The
Harbormaster shall inspect the vessel at its office for compliance with Section
17.25.020(H) before the assignment is approved; or
b. If the documentation is not received within sixty (60) days of a transfer, the
mooring may be deemed vacant by the Harbormaster and the mooring may be assigned
pursuant to subsections (G) and (H) of this section. The mooring may remain vacant
until such time the permittee notifies the Harbormaster of their intent to assign their
vessel to the mooring.
Page 7 / 18
4-70
STRIKEOUT VERSION
4. The transfer request shall be denied unless mooring permit rent, including late payment
fees, is paid current; required mooring inspections are current; registration or documentation
and insurance are provided; required maintenance and repairs are complete and there are no
derelict or unauthorized vessel(s) on the mooring; and the vessel is of appropriate length
with the appropriate weights and chains.
5. The mooring permittee and transferee shall provide a written agreement to defend and
indemnify the City of Newport Beach in any dispute with a third party over transferee's right
to be the mooring permittee or in any dispute with a third party over the mooring permittee's
right to transfer the permit.
6. Transfer Approval. Upon confirmation of compliance with this subsection, the
Harbormaster must find all of the following conditions to approve the transfer of a mooring
permit:
a. The mooring permittee no longer owns the assigned vessel or has retained
ownership of the assigned vessel and has permanently vacated the mooring;
b. The transferee has met all the qualifications and conditions for issuance of a
permit in subsection (B) of this section;
C. The transferor or transferee has reported to the Harbormaster the price paid for the
mooring permit, and has paid to the City the required transfer fee; and
d. The transferor represents that the person did not discriminate against any
transferee or prospective transferee because of race, religious creed, color, national
origin, ancestry, physical handicap, medical condition, marital status, sex, sexual
orientation, age or any other impermissible basis under law.
7. The Harbormaster may approve a one -for -one exchange of moorings between two
mooring permittees, subject to compliance with this subsection without any transfer fee
imposed by the City.
8. The Harbormaster may approve the changing of an assigned vessel on the permit, subject
to the requirements of subsection (B) of this section, without any transfer fee imposed by the
City.
9. Following an approved transfer, the Harbormaster shall list the transfer price of the
mooring permit on a publicly available website hosted by the City, or on a third party's
website under contract with the City to host information regarding mooring permit transfers.
G. City's Authority to Assign Moorings through Use of Sub -Permits. With the exception of
the Balboa Yacht Club, the Newport Harbor Yacht Club, and the Lido Isle Community
Association's designated moorings, mooring permittee may not rent, assign, or transfer the use of
the mooring to any other person. With the exception of moorings issued to mooring permittees
described in subsection (B)(3)(g) of this section, the Harbormaster shall have the authority to
assign vacant moorings to sub-permittees pursuant to the following provisions:
Page 8 / 18
4-71
STRIKEOUT VERSION
1. Deemed Vacant Moorings. The Harbormaster may assign deemed vacant moorings
through the issuance of sub -permits at his or her own discretion. Sub -permits may be
renewed upon availability. The mooring permittee may reclaim its mooring upon three days'
prior written notice to the Harbormaster of its intent to return the assigned vessel to the
mooring.
A "deemed vacant mooring" shall be defined as a mooring upon which:
a. An assigned vessel has not been attached for thirty (30) consecutive days or more;
or
b. A vessel, other than an assigned vessel or approved sub-permittee vessel approved
in accordance with subsection (H) of this section, has been attached for thirty (30) days
or more; or
C. Required documentation for an assigned vessel has not been provided for a
transfer request pursuant to subsection (F) of this section.
2. Noticed Vacant Moorings. The Harbormaster may assign noticed vacant moorings
through the issuance of a mooring sub -permit for any period of time, up to the reoccupation
date on the mooring permittee's written notice, or the twenty-four (24) hour written notice
per subsection (G)(2)(b) of this section. If the mooring continues to be vacant for thirty (30)
days past the reoccupation date indicated on mooring permittee's notice, and there is no
further written notice from mooring permittee, the mooring shall become a deemed vacant
mooring.
a. Mooring permittee may provide written notice to the Harbormaster of its intent to
vacate its mooring for fifteen (15) days or more. These moorings shall be "noticed
vacant moorings." Written notice shall include the date the mooring permittee intends to
vacate his/her mooring, and the date he/she intends to reoccupy the mooring with the
assigned vessel.
b. If a mooring permittee provides written notice, the mooring permittee may
reclaim the assigned mooring on the reoccupation date indicated in his/her written notice
or, if the mooring permittee returns prior to or after the reoccupation date, upon twenty-
four (24) hours' written notice to the Harbormaster.
H. Procedures for Mooring Sub -Permit Issuance. Issuance of a mooring sub -permit shall be
subject to the following conditions:
1. Provision of a written representation of the mooring sub-permittee's vessel length which
shall be satisfactory to the Harbormaster;
2. The mooring sub-permittee agrees to be responsible for any damage to mooring
equipment; to defend and indemnify the City of Newport Beach and the mooring permittee
against any claims or losses arising out of, or related to, the mooring rental; to provide proof
of insurance as may be determined by the City's Risk Manager; to provide registration or
other proof of ownership; to provide an equipment damage deposit, all to the satisfaction of
the Harbormaster; and authorize the City, or its designee, to move the vessel on the mooring
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to another location when deemed necessary by the Public Works Director and/or
Harbormaster;
3. The repair of any damage to the mooring equipment shall be paid by the mooring sub-
permittee. If the mooring is damaged by a vessel assigned by the City, or the City's agent,
the City shall arrange for the repair of the mooring with a qualified vendor and provide
notice to the permittee of the occurrence and the arranged repair date. Should the sub-
permittee fail to pay for the damage for any reason, the City will pay for the required repairs
to the mooring, and then seek reimbursement from the sub-permittee. Also, the City shall
make available a mooring without charge for the returning vessel of the mooring permittee
until such time as their permitted mooring is repaired;
4. The mooring sub-permittee shall provide approved mooring lines which shall be removed
at the end of the rental period;
5. A mooring sub -permit may be up to fifteen (15) days and may terminate at any time for
any reason, and may be renewed based on availability. Upon return of the assigned vessel to
the mooring, the Harbormaster will attempt to reassign the sub-permittee to another mooring.
Mooring sub-permittees have no right of renewal or substitute moorings upon return of the
assigned vessel, or upon termination of a mooring sub -permit for any reason. Mooring sub-
permittees accept an indefinite term at their own risk. The decision by the Harbormaster to
terminate a sub -permit shall be final and nonappealable;
6. The mooring sub -permit rent will be based on a rate established by resolution of the City
Council; and
7. Mooring sub -permits are offered to the public on a first -come, first -served basis. City
owned and operated moorings may be reserved in advance.
I. Mooring Permit Transfer Nonrefundable Fee. The City shall charge the mooring
permittee for the right to transfer a mooring permit under subsection (E) of this section in an
amount equal to seventy-five (75) percent of the annual mooring rent as established by City
Council resolution. This transfer fee represents a one-time nonrefundable transfer fee for the use
of a mooring. A mooring permit transfer fee shall not be required i£
1. The transfer is from the mooring permittee to the same mooring permittee as trustor of an
inter vivos trust, living trust or other similar estate planning tool;
2. The transfer is made under subsections (F)(7) and (8) of this section; or
3. The transfer is to immediate family.
J. Surrendered Mooring Equipment. If the mooring permittee sells, transfers, or otherwise
no longer owns the assigned vessel and does not intend to apply for, or does not receive,
approval to transfer the permit to another, the permittee may provide written notice to the
Harbormaster of his or her intent to surrender the mooring permit; otherwise the provisions of
subsection (G) of this section regarding a vacant mooring shall apply.
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Once a mooring permit is surrendered, the mooring permittee shall remove the assigned vessel
and/or the mooring equipment thirty (30) days after written notice of surrender of the permit, or,
upon failure to remove the mooring equipment, title shall vest in the City and the City shall
compensate the mooring permittee the fair value for the mooring equipment, less rent or fees
owed, as provided in subsection (L) of this section.
K. Revocation of Permit.
1. The grounds and procedure for revocation of a mooring permit are set forth in Section
17.70.020.
2. Upon revocation of the mooring permit, it shall be the duty of the mooring permittee to
immediately remove the mooring equipment and any moored vessel. If not removed within
thirty (30) days of revocation of the permit, the mooring equipment shall vest in the City and
may be auctioned by the City to another person or may be removed by the Harbormaster and
the cost of mooring equipment removal shall be paid by the mooring permittee. Any moored
vessel or equipment not removed within thirty (30) days may be impounded by the City and
disposed of in the manner provided by law. City -incurred costs of removal of mooring
equipment or any vessel moored thereto may be charged against the permittee and collected
in any court of competent jurisdiction or recovered by the City from the proceeds of sale of
the vessel or mooring equipment.
3. During any revocation proceeding, if the mooring is unoccupied, it may be temporarily
assigned as a mooring for guest vessels by the Harbormaster.
L. Moorings Reverting Back to City. Should a mooring revert back to the City for any
reason, whether through abandonment, surrender, failure to provide documents pursuant to
subsection (F) of this section, or for any other reason other than as set forth in subsection (K) of
this section, the following shall apply:
1. The mooring permittee shall be entitled to recover all of the mooring permittee's mooring
equipment within thirty (30) days of reversion;
2. If the mooring permittee does not recover his or her mooring equipment, the mooring
permittee shall be entitled to payment from the City of the fair value of the mooring
equipment as depreciated by use in an amount to be determined by the Harbormaster and as
set in the City's master fee resolution, after any and all past due rent and fees, if applicable,
have been satisfied; and
3. The mooring equipment may be publicly auctioned by the City, or the City's designated
representative, or the mooring equipment may be used for other City purposes.
M. Request to Extend Mooring Length.
1. General. Mooring permittees shall not moor vessels that exceed their permitted maximum
mooring length. If an offshore mooring permittee wishes to moor a vessel that requires an
extension in mooring length, they may request an extension up to the established length of
their mooring row. A request for an extension that would exceed the established length of
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their mooring row shall require the permittee to relocate to a larger mooring row. In no case
shall mooring lengths exceed the established mooring row lengths.
2. Application.
a. Filing and Review of Request. An offshore mooring permittee shall file a written
request for extension of mooring length with the Harbor Department on a form
prescribed by the Harbormaster, together with the filing fee required by the City's fee
schedule adopted by resolution of the City Council.
b. Application Requirements. An application for extension of mooring length shall
include the following information in addition to such other information as may be
required by the Harbormaster:
i. The full identification of the applicant and the vessel for which the extension of
mooring length is sought, certifying that the applicant and the assigned vessel have
complied with (or in the event the vessel identification is unknown, applicant will
certify that such unidentified vessel prior to occupying the mooring space will comply
with) all of the applicable United States Coast Guard license, inspection, and
certification requirements, and certifying that the applicant has read and is otherwise
familiar with all of the applicable rules and regulations promulgated by the City,
including, but not limited to, the provisions of this title;
ii. Such plans and specifications as may be required by the Harbormaster for such
mooring to accommodate the proposed longer vessel; and
iii. Detailed information regarding the vessel including make, model, year, LOA,
beam, dimension, vessel ID, and if the vessel identification is not known at the time
of making an application, the LOA and adjusted LOA (including bowsprits, swim
steps, or stern -mounted dinghies) of the proposed vessel for which the applicant seeks
approval. The LOA as published by the manufacturer of a particular vessel shall be
used to determine the required mooring size of a particular vessel, and the size of the
specification for the chains, weights, and tackle necessary to secure a vessel on a
particular mooring for a permittee. Adjusted LOA shall be used to determine the
maximum vessel length that can fit in any particular slip, side -tie, or mooring row.
3. Action on Extension Request. For extension requests that require relocation to a larger
mooring, a mooring of appropriate size must be available within the same mooring field. The
H and J fields shall be considered as one field for the purpose of relocations. As used herein,
an available mooring includes one that is occupied by a permittee whose permitted
maximum mooring length is shorter than the established length of its mooring row by five
feet or more. The Harbormaster may approve the extension request only after making the
findings set forth in Section 17.05.140(D)(1) and making the following findings:
a. There have been no changes in the conditions or circumstances of the existing
offshore mooring permit so that there would have been grounds for denial of the original
offshore mooring permit or grounds for revocation thereof at the time an application for
extension of mooring length is filed;
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b. The proposed extension of mooring length will not:
i. Impede or obstruct the fairways or channels or prevent or obstruct the passage of
other vessels between the rows;
ii. Impede, obstruct or prevent other mooring permittees from safely navigating in
and out of adjacent moorings or moorings in other rows connected by the same
fairway to the row of the permittee's vessel;
iii. Result in vessel(s) encroaching into the fairway or extending beyond the outer
boundaries of the mooring area or row; or
iv. Violate the established length of the row or mooring area in which the vessel will
be moored;
C. The applicant and the assigned vessel have complied with all of the appropriate
United States Coast Guard license, inspection, and certification requirements for the
assigned vessel and all of the applicable rules and regulations promulgated by the City,
including, but not limited to, the provisions of this title.
Example of relocation to an available mooring. Permittee A wishes to upgrade their
vessel "Atlantis" (forty (40) foot LOA), which is in a forty (40) foot row, with "Atlantis
II" (forty-two (42) foot LOA). A will need to relocate to a mooring in a longer row since
the mooring length cannot be extended at its current location. Permittee B's vessel
"Barnacle" (forty-one (41) foot LOA) is in a forty-five (45) foot row. Permittee C's
vessel "Calypso" (forty (40) foot LOA) is in forty-five (45) foot row. Permittee D's
vessel "Doldrums" (forty (40) foot LOA) is in a forty-five (45) foot row. B has a
permitted mooring length of forty-one (41) feet; C's permitted mooring length is forty
(40) feet; and D's permitted mooring length is forty-one (41). All four moorings are in
the same mooring field. C's mooring is the only available mooring to which A can
relocate.
4. Conditions of Approval. If the Harbormaster approves a request for extension of mooring
length, such approval shall be conditional and contingent upon the following requirements:
a. The mooring permittee must occupy the approved mooring with their vessel
within twelve (12) months following the date of approval;
b. Transferable mooring permits shall not be sold or transferred for a period of
twelve (12) months following the date of occupancy of the approved mooring. The sale
or transfer of said permit shall comply with the requirements of subsections (13)(3), (E)
and (F) of this section; and
C. The requestor shall cover all costs associated with modifying the length of their
mooring, or in the case of a relocation moving their vessel to the available mooring and
moving the displaced vessel from the available mooring. The costs shall include, but not
be limited to, the moving of mooring anchors and tackle and resizing of mooring tackle
to meet applicable mooring standards (e.g., chain size).
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5. Noncompliance with subsection (M)(4)(a) or (b) of this section shall result in rescission
of the approval to extend mooring length. Within thirty (30) days of the rescission, the
permittee who requested the extension shall at its sole expense return the mooring to its prior
maximum length or in the case of a relocation return their vessel and the displaced vessel to
their prior assigned mooring locations or other mooring locations as deemed appropriate by
the Harbormaster. Violation of subsection (M)(4)(b) of this section shall be grounds for
revocation of the mooring permit.
17.60.045 Short -Term Mooring Licenses.
A. General.
1. If a short-term mooring license is issued pursuant to this section, a person shall have
the right to use or tie to an offshore mooring or onshore mooring in the waters of
Newport Harbor. A mooring license shall be non -transferable and shall not provide
any ownership interest in the underlying tidelands, which are held in trust by the
City and owned by the people of the State.
2. The provisions and regulations in this title pertaining to "permittees" and "permits"
generally shall also be applicable to licensees and mooring licenses except when
this section expressly provides otherwise, or such application would conflict with
this section-
B. Term. Mooring licenses shall be valid for one month and may be renewed, provided the
licensee has paid in full the license fee, any late fees and is not in violation of any provision
of the license or this title.
C. License Fee: Late Fee. A licensee shall bav a license fee eauivalent to the monthlv fair
market value rent of the mooring, as established by resolution of the City Council. Failure
to pay the license fee by the due date shall be grounds for termination of the license by the
Harbormaster. If the Harbormaster, in the Harbormaster's sole discretion, elects to not
terminate a license for failure to pay by the due date, licensee shall pay a late fee in the
amount established by resolution of the City Council. Failure of a licensee to pay the license
fee and late fee within ten (10) dgys of the date due shall result in immediate termination
of the license and the termination shall not be annealable to the Harbor Commission.
D. Eligibility Criteria.
1. Mooring licenses may be held only by natural persons. No more than two persons
may be listed on a mooring license.
2. A person may hold up to two mooring licenses, but they cannot be for the same
type of mooring (e.g., both onshore or both offshore).
3. Onshore mooring permittees shall be ineligible for onshore mooring licenses and
offshore mooring permittees shall be ineligible for offshore mooring licenses.
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Mooring permittees holding more than one mooring permit shall not be eligible for
any mooring license.
4. The person or persons listed on the mooring license must have at least a fifty (50)
percent ownership interest in the vessel assigned to the mooring. The minimum
ownership interest requirement may be satisfied by the combined interests of the
two persons. For vessels that are not held in an individual capacity, such as in trust
or by a limited liability company, evidence of the required minimum ownership
interest shall be provided to the satisfaction of the Harbormaster.
E. Application for Mooring License. Application for a mooring license shall be filed with the
Harbormaster, on forms approved by the Harbormaster and shall include the following in
addition to such other information the Harbormaster may require:
1. Applicant(s)' full legal name, current address, current telephone number and
current email address;
2. Vessel registration or other proof of ownership required by the Harbormaster; and
3. Insurance, which types and amounts shall be determined by the Risk Manager.
F. Issuance of Mooring License. The Harbormaster may issue mooring licenses subject to the
conditions set forth in this subsection.
1. Each person listed on a mooring license shall be individually and collectively
responsible for all activities pursuant to the mooring license and compliance with
all applicable rules, regulations, and conditions.
2. A licensee may not allow vessels other than the assigned vessel and tender to use
the mooring.
3. A licensee shall ensure mooring spreader lines remain visible on the surface at all
times by the use of floats or other devices or methods and shall keep the lines clean
of algae and other marine growth. Except for spreader lines, the City shall be
responsible for the maintenance, repair, and replacement of mooring system
components, including, but not limited to, chains, shackles, anchors, weights, lines,
and buoys.
4. Live-aboards shall be prohibited.
5. The City may temporarily assign a mooring that is vacant or unoccupied to another
vessel through the issuance of a mooring sub -permit in accordance with Section
17.60.040(H).
6. A licensee shall move the vessel from the mooring to another location when deemed
necessary by the Public Works Director and/or Harbormaster. Upon the licensee's
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failure to do so, the City or a contractor retained by the City may move the assigned
vessel at the licensee's expense.
7. A licensee shall be subject to relocation or reassignment to another mooring
pursuant to Section 17.60.040(B)(2)(1).
8. The Harbormaster may board the assigned vessel at any time to inspect the
condition and operability of the marine sanitation device(s) and/or insert dye tablets
to determine whether said devices are discharain2 overboard.
9. A licensee shall defend and indemnifv the Citv and anv other L-overnment enti
with jurisdiction against any claims or losses arising out of, or related to the use of,
the mooring license except where the claim or loss arises from a sub-permittee's
damage of the mooring, or out of the negligence and/or misconduct of a person
assigned the mooring as a mooring sub-permittee under Section 17.60.040(H).
10. A licensee shall notify the City within five (5) days of any change in the information
that was provided in their mooring license application including, but not limited to,
a change in ownership interest in the assigned vessel.
G. Extended Vessel Absence. Vacancv or absence from the mooring by the assiuned vessel
for at least twenty-five25) consecutive days shall be deemed abandonment of the mooring
and shall result in automatic termination of the mooring license. Termination of license
based on abandonment shall not be appealable to the Harbor Commission. The following
situations shall not constitute a mooring being deemed abandoned:
1. The absence or vacancy from the mooring, which shall not exceed six (6) months,
with the prior written approval of the Harbormaster.
2. The licensee is in the process of chanizina the assigned vessel. provided that (a
written notice of the intent to remove and replace the assigned vessel is given to the
Harbormaster prior to removal of the vessel, (b) all required information and
documentation for the new vessel, including proof of ownership or registration, is
submitted to the Harbormaster within ninety(90) days of the date of the written
notice, and (c) the vessel is made available for inspection by the Harbormaster for
compliance with Section 17.25.020(H).
H. Mooring of a Tender. A single tender, which serves as access to and from shore to the
assigned vessel, may be secured to the assigned vessel or to the offshore mooringin n the
absence of the assigned vessel. The tender must be secured in such a manner so as not to
intrude into the fairwav or obstruct other vessels.
Termination.
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1. The Harbormaster may terminate a mooring license for the licensee's failure to
correct any violation of this section or any applicable provision of Title 17 within
the timeframe set forth in a notice of violation issued by the Harbormaster.
2. Upon a determination that grounds for termination of a mooring license exist, the
Harbormaster shall serve written notice of the termination in accordance with
Section 1.05.030 to the licensee stating the grounds for the action, the effective date
of the decision, and the right of the licensee to appeal the decision to the Harbor
Commission. The licensee shall have fourteen (14) days from the date on which
notice is deemed served to request a hearing or else the decision of the
Harbormaster shall be final. Termination of a license for failure to pay any fees or
based on the abandonment of a mooring shall not be appealable to the Harbor
Commission.
3. Upon termination of the mooring license, the licensee shall immediately remove
their vessel(s) from the mooring. The City may impound any vessel not removed
within ten (10) days of the termination date and thereafter dispose of it in the
manner provided by law. City -incurred costs for removal of the vessel may be
charged against the licensee and collected in any court of competent jurisdiction or
recovered by the City from the proceeds of sale of the vessel.
4. If a timely ppeal is filed, the process for revocation of mooring permits set forth
in Section 17.70.020 shall be followed.
17.60.050 Houseboats.
A. Moorage Restrictions. No person shall moor or dock a houseboat on the waters of
Newport Harbor.
B. No person shall use or occupy or permit the use or occupancy of a houseboat for living
quarters either permanently or on a temporary basis on the waters of Newport Harbor.
17.60.060 Public Trust Lands.
A. Leases/Permits. In the event public trust lands are used for commercial purposes by an
entity other than the City, such as for example, a commercial marina or commercial pier, then
that entity shall enter into a lease or permit with the City.
1. Leases shall provide lessees with a leasehold interest in the property for a period of at
least five years, not to exceed a period of time as limited by the City Charter or applicable
State law.
2. Permits shall provide permittees with an interest in the property for a period of ten (10)
years or less, to be determined in the sole and absolute discretion of the City.
3. The City Manager, or his or her designee, is authorized to enter into leases or permits
authorized by this section on behalf of the City in a form approved by the City Council
pursuant to Resolution 2012-91 for large commercial marinas and Resolution 2012-97 for
commercial use of tidelands (as the same may be subsequently amended from time to time
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by the City Council) or in such form as is substantially similar thereto; provided, however
that the City Manager may instead refer the matter to the City Council for consideration and
approval. Furthermore, the City Manager or his or her designee, is authorized to implement
such leases or permits on behalf of the City and to issue interpretations, waive provisions,
and enter into amendments thereof.
B. Land Use. Leases and permits shall be for uses consistent with the public trust and
Section 17.05.080. Preference shall be given to coastal -dependent uses.
C. Public Access. Public access shall be provided in a manner consistent with applicable
law.
D. Revenue. Rent under this section shall be based upon fair market value, as determined by
an authorized appraiser, survey, or other appropriate valuation method, of the uses authorized in
the lease or permit as established by the City Council.
E. Commercial uses provided under this title are exempt from any provision requiring
involvement of the owner or long-term lessee of an abutting upland property. This section's sole
purpose is to allow a person to apply for a commercial pier permit or lease in front of or
encroaching upon abutting upland property not owned or leased by the person applying for the
permit.
F. All persons that receive a commercial permit or lease, whether it is a new permit or lease
or a transferred permit or lease, from the City to use public trust lands shall, to the fullest extent
permitted by law, indemnify, hold harmless and defend (with counsel approved by the City,
which approval shall not be unreasonably withheld) the City, its elected officials, officers,
employees, agents, attorneys, volunteers and representatives from and against any and all claims,
demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines,
penalties, liabilities, costs and expenses of every kind and nature whatsoever (individually, a
"claim" or collectively, "claims"), which may arise from or in any manner relate (directly or
indirectly) to the permit or lease including, but not limited to, the issuance of any permit or lease,
the transfer of any permit or lease, the entry into any permit or lease, permittee's or lessee's
occupancy or use, or occupancy or use by permittee's or lessee's guests, invitees, sublessees, or
licensees of the public trust lands, or improvements including, but not limited to, any use
involving petroleum -based products, hazardous materials, hazardous waste and/or other
hazardous substances as defined by City, County, State or Federal laws and regulations. The
permittee's or lessee's obligations under this indemnity shall not extend to the degree any claim
is proximately caused by the sole negligence or willful misconduct of the City, subject to any
immunities which may apply to the City with respect to such claims. This indemnification
provision and any other indemnification provided elsewhere in an individual permit or lease shall
survive the termination of said permit or lease and shall survive for the entire time that any third
parry can make a claim.
This indemnity obligation shall apply independent of whether it is explicitly placed within a
particular commercial permit or lease.
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