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Home My WebLink About13 - Harbor Commission Recommendations and Alternative Recommendations for Rental Rates for Moorings - PowerPoint (Staff)MOORING RENTAL RATES JULY9,2024 I CITYCOUNCIL PURPOSE OF AGENDA ITEM 1) Continue to comply with Grand Jury report - 0 Set mooring rates using an appraisal 2) Address State Lands Commission concerns - • Charge fair market value rent for public tidelands • Prohibition on private transfer and prohibit private profit on public Lands I, CITY O� NEWPORT BEACH WHAT IS A MOORING? Onshore (accessible from land) -5 I, i CITY OF NEWPORT BEACH Offshore (bayward of pierhead line) fore and aft mooring (double -point) 3 m \ V51 \-111 Id if LIDO K FIENNINSULA \0' d 46 NGWPOFI MOF G U Karb� klarid � LQ 1: F. BACK ILAY LLL COLUNS ISLAND Z I- I LN F04BALBOA Al I LISLAND Ill ISLAND, BYC BALBOA t-- VILLAGE: HARBOR MOORING FIELIN& Ralbou Pier Mooring Areas Public Dock Pumpout Station Marina Park/Harbormuster Boat Ramp City of Newp-ort Beach Moorings and HarbormosTer k Fuel Dock 13 Public. Slips Coast Guard Harbor Patrol t Anchorage — — Ferry Crossing Marina Fark,"'Harbo r m aster 1600 W. Balboa Rlyd. Newporf Beach, CA 92663 949- 270-8159 harborrno-ster@newportbecichco.gov newportharbor.org 3Fr Permit Permittee maintains mooring tackle * Transferrable * 1,209 existing permits * $3.35 per linear foot per month (offshore) * $1.67 per linear foot per month (onshore) J, CITY OF NEWPORT BEACH License * City maintains mooring tackle * Not transferrable * 16 existing licenses * $15 per linear foot per month (offshore, 40-foot) * $9 per linear foot per month (onshore, 18-foot) * Rents set in 2016 by Council Resolution 2016-17 e Current Rents Onshore: $1.67 per linear foot per month Offshore: $3.35 per linear foot per month *Adjusted annually by lesser of 2% or CP11 * Resolution calls for reappraisal every 5 years J, CITY OF NEWPORT BEACH LEGAL REQUIREM AM *Tidelands are owned by State, managed by City Governed by: e State Statutes — Beacon Bay Bill • Municipal Code • Council Policy I 1, � CITY OF NEWPORT BEACH STATE OF CALIFORNIA Beacon Bay Bill Limits uses to public harbor, beaches, marinas, aquatic and recreational facilities for the general public, and preservation -9 Private limited use allowed when: Lease or permit Less than 50 years No discrimination in rates, tolls, charges - rent based on value I, CITY OF NEWPORT BEACH California Constitution 9 Section 6, Article XVI Public Finance 4, City is fiduciary No gift of public funds or gift of public lands to any individual or corporation L-01 CITY OF NEWPORT BEACH Municipal Code e Sections 17.60.020(E) and 17.60.060(D) — rental rates for tidelands uses set at fair market value (FMV) e FMV determined by appraisal FMV established by City Council I, CITY OF NEWPORT BEACH Council Policy F-7 FMV required for private use of public lands e Exceptions for public use or community benefit Waiver of policy requires City Council approval * Onshore appraisal completed in December 2021 * Offshore appraisal completed in December 2023 8 Harbor Commission meetings in 2022 and 2024 to discuss I, i CITY OF NEWPORT BEACH * Recommendations Adopted: April 10, 2024 Establish mooring rental rates at 24% of Newport Harbor Marina Index (NHMI) * NHMI is average of 7 low- to mid -price marinas in harbor Recommendation considered 30% in offshore appraisal report and other factors Phase -in rates beginning January 2025, then annually each July, from 2025 through 2029 * Adjust amounts each year based on NHMI e Rates: Annual increase to fair market rates over 5 years 9 Current: *Jan.2025: • July 2025: • July 2026: • July 2027: • July 2028: - July 2029: $3.35/LF/month *$4.16/LF/month *$5.04/LF/month *$6.78/LF/month *$8.53/LF/month *$10.28/LF/month *$12.02/LF/month *estimated based on current NHMI (rates for 40-foot offshore mooring) 9 Maintenance: Permittee continues to maintain tackle * Mooring permittees: 9 Rate increase severe * Unaffordable rent, causing need to relocate or sell vessel 9 Expense to maintain and replace tackle adds to costs * State Lands Commission: 9 Transferability * Collect fair market value rent across tidelands uses I, CITY OF NEWPORT BEACH * Grandfather existing permittees at current rates e Continue lesser of 2% or annual CPI adjustment One-time private transfer of permit allowed for 4 years (2028) e Subsequent mooring users must go through City License Permit transferee's rates continue at current rates for 4 years from transfer date, then converted to City License * New mooring users issued City License Rate change City covers maintenance of mooring and tackle Yacht Clubs given 8 years at current rates, then subject to City License rates as of 2032 Rates: No chan to current rate structure - Onshore - $1.67/LF/month Offshore - $3.35/LF/month Death: Beneficiary given 1 year to relocate or sell vessel before subject to City License/increased rates Liveaboards: No change to current rates or permit 9 Maintenance: Permittee continues to maintain tackle I, CITY OF NEWPORT BEACH 15 0 No change to liveaboard permits under IVIC 17.40 0 Continue to allow based on 7% of total offshore mooring permits (currently 51) Harbor Commission Recommendation * Mooring rates at 24% of NHMI * Rate based on mooring size Rate increase phased -in through 2029 Alternative Recommendation Grandfathered permittees can maintain liveaboard permit Transferred permit, converted to a City License, can maintain liveaboard permit Harbor Commission Recommendation Balboa Yacht Club & Newport Harbor Yacht Club (offshore fields) Mooring rates at 24% of NHMI Rate based on mooring size Rate increase phased -in through 2029 Lido Isle Community Association (onshore field) Mooring rates at 24% of NHMI Rate based on mooring size Rate increase phased -in through 2029 Alternative Recommendation Current Rates through 2032 Balboa Yacht Club & Newport Harbor Yacht Club (offshore fields) - $3.35/LF/month Lido Isle Community Association (onshore field) - $1.67/LF/month Pay Mooring License Rates in 2032 Balboa Yacht Club & Newport Harbor Yacht Club (offshore fields) - Rates based on mooring size and City License rates Lido Isle Community Association (onshore field) 0 *$9.00/LF/month (*estimated based on current rate) 17 Mooring Rental Rate Comparison WLW Source Rate/LF/Month Rent/Month I AOL Current 40-foot Mooring Permit Rental Rates $3.35 $134.00 (Reso No. 2016-17) Harbor Commission Recommendation - 24% of 2024 BYB Rate 40-Foot (April 10, 2024) $12.56 $502.40 City Staff Recommendation — -Existing/Grandfathered Permittees $3.35 $134.00 40-Foot -City Mooring License Program $15.00 $600.00 40-Foot (March 1, 2024) THANK YOU! Jaime Murillo, AICP, Deputy Community Development Director Lauren Wooding Whitlinger, Real Property Administrator