HomeMy WebLinkAbout2012-120 - Setting Rent for Residential Piers Located Upon TidelandsRESOLUTION NO. 2012 -120
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
SETTING RENT FOR RESIDENTIAL PIERS
LOCATED UPON TIDELANDS
WHEREAS, pursuant to the 1978 Beacon Bay Bill, as amended, ( "Beacon Bay
Bill ") the City of Newport Beach ( "City ") acts on behalf of the State of California as the
trustee of Tidelands located within the City's limits, including Newport Harbor;
WHEREAS, the Beacon Bay Bill and Chapter 17.60 of the Newport Beach
Municipal Code ( "NBMC ") allow the City to authorize third parties to construct/maintain
residential piers upon tidelands;
WHEREAS, on July 27, 2010 the City Council formed the Council Ad Hoc
Committee on Harbor Charges ( "Committee ") and tasked the Committee with
performing a comprehensive review of tidelands uses. The Committee looked at
mooring fees, rents at the Balboa Yacht Basin, and rents charged to persons holding
commercial pier permits but did not review rents for residential piers;
WHEREAS, Mayor Gardner and Council Members Henn and Rosansky have
acted as a working group to review residential pier rental rates, as the Committee's
specific scope of work neared completion;
WHEREAS, the Beacon Bay Bill, California Constitution Article 16, Section 6,
and City Council Policy F -7(D) require the City to receive fair market value Rent from
third parties using the Tidelands;
WHEREAS, the City Council has the exclusive discretion to determine fair
market value Rent based upon the findings of a City - selected appraiser;
WHEREAS, an appraisal report by Rasmuson Appraisal Services, and an
appraisal report by Netzer & Associates, were prepared and delivered to the City and
have been reviewed and considered by the City Council, which reports are part of the
record for this matter;
WHEREAS, on'November 19, 2012, the working group held a public outreach
meeting with Residential Pier Permittees to solicit their input and participation in the
Tidelands review process and this meeting afforded the public the opportunity to
comment on this matter as well as allowing the working group to provide to the public
information relating to this matter;
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WHEREAS, on November 28, 2012, the City Council held a Special Meeting to
solicit input from Residential Pier Permittees and members of the community regarding
the proposed fair market rent for Residential Piers;
WHEREAS, the City Council has considered all documents and comments in the
record in connection with this resolution;
WHEREAS, all previous resolutions and actions regarding the fair market value
Rent for Residential Piers located upon Tidelands that are in conflict with the Rent
established by the City Council in this resolution are hereby repealed.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The Recitals provided above are true and correct and are
incorporated into the substantive portion of this resolution.
Section 2: The City Council finds that the Rent provisions contained in the
attached Residential Pier Tidelands Rent Calculations, which is incorporated by
reference, provide for the charging of fair market value Rent and that the rental rate
(and adjustments) in the attachment constitute fair market value Rent for Residential
Piers located upon Tidelands, which findings are made by the City Council in its
exclusive discretion but are based on the information in the appraisals of its City -
selected appraisers and, in addition, on other testimony and documents in the record for
this matter. The City Council further finds and determines the Rent for Residential Piers
located upon Tidelands, operating under an annual permit, shall be set in accordance
with the attached Residential Pier Tidelands Rent Calculations. The Rent established in
this resolution shall only be applicable to Permittees with a Residential Pier located over
Tidelands.
Section 3: The City Council finds the setting of Rent for residential piers
located upon Tidelands is not subject to the California Environmental Quality Act
( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment) and 15060(c)(3)
(the activity is not a project as defined in Section 15378) of the CEQA Guidelines,
California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly. Alternatively, the
City Council finds the setting of Rent for residential piers located upon Tidelands is
entitled to a Class 1 Categorical Exemption pursuant to CEQA Regulation Section
15301 because the Rent contemplates the continued use of existing facilities, with no
expansion of the proposed use. Further, the City Council finds the setting of Rent for
residential piers located upon Tidelands is entitled to a Statutory Exemption pursuant to
CEQA Regulation Section 15273(a)(1) because the fair market value Rent established
by the City Council will be used to meet operating expenses within the Tidelands.
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Lastly, the City Council finds the setting of Rent for residential piers located upon
Tidelands is not a project under CEQA Regulation Section 15061(b)(3) because it has
no potential for causing a significant effect on the environment.
Section 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, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses and phrases be declared
unconstitutional.
Section 5: 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 11th day of December, 2012_
ATTEST:
c -
Leilani L'Brown, ti
City Clerk
Attachment: Residential Pier Tidelands Rent Calculations
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Residential Pier Tidelands Rent Calculations
Residential Pier Rent
(1) Beginning on March 1, 2013, Residential Pier Permittees shall pay as
Rent Fifty -Two and One -Half Cents ($0.525) per square foot of the
Premises, as phased in and adjusted pursuant to this resolution. Two (2)
examples of the Rent calculation are provided below for illustrative
(2) Beginning on March 1, 2013, Permittees that desire to rent/lease their
Residential Pier shall notify the City in writing. Permittees that rent/lease
their Residential Pier, either in whole or in part, shall pay the Rent
applicable to Small Commercial Marinas as established in Resolution No.
2012 -98, or any successor resolution, for the Premises.
(3) To the extent a Residential Pier is shared by two (2) or more Permittees,
the Rent shall be apportioned equally among the Permittees (i.e., if a
Residential Pier is shared by two (2) Permittees half (112) of the Rent shall
be billed to one (1) Permittee and the other half (112) of the Rent shall be
billed to the other Permittee). The Permittees shall be joint and severally
M
liable for the Rent. Each Permittee shall receive a permit from the City
indicating the percentage of the Premises apportioned to the Permittee.
Periodic Adjustments of Rent And Phase In
Rent for Residential Piers provided by this resolution, shall be phased -in and
adjusted as follows in the table below. In the table, "A" represents the calculated rent
based on the known square footage under permit in 2012, multiplied by Fifty -Two and
One -Half Cents a square foot ($0.525/SF):
Fifty -Two and One -Half Cents ($0.525) Rent Phase -in Table and Adiustment
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Example
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100
199
$ 299
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During the phase -in period there shall be no adjustment by the U.S. Department of
Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers
( "CPI "), Los Angeles - Riverside- Orange County region or otherwise.
Beginning in 2018 and indefinitely beyond, the rental rate shall be adjusted by the
change in the CPI or two percent (2 %) whichever is less. The City may conduct a new
appraisal of residential pier rental rates in Newport Harbor after March 1, 2018, and
every fifth (5t") year thereafter, as part of the appraisal required by Resolution No. 2012-
96, or any successor resolution. The City Council, at its discretion, may use the
appraisal to adjust Rent for the following year (i.e., the Rent determined by the appraisal
following March 1, 2018 shall be effective March 1, 2019). if the City Council chooses
not to adjust Rent across the Class of Permit, it shall use the appraisal's results to
adjust the Rent of only those individual Permits that transfer ownership following each
appraisal. Once adjusted, these transferred Permits shall be adjusted by the change in
CPI or two percent (2 %), whichever is less, until such time that a new appraisal applies
to this Permit or Class of Permit-
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Definitions
Unless otherwise provided, the terms provided in the Newport Beach Municipal
Code ( "NBMC ") shall apply to this resolution. The singular of any term also includes the
plural.
(1) Class of Permit means all Permits for Residential Piers in Newport Harbor.
(2) Permit refers to a permit issued by the City authorizing a Residential Pier
upon the Premises.
(3) Permittee means a person who has a permit from the City to
construct/maintain a Residential Pier.
(4) Premises means those Tidelands which are subject to the applicable
permit and are more particularly described and depicted in the applicable
permit, excluding any Private Waterways and improvements owned by the
Permittee or Tidelands subject to recorded easements for pier and slip
purposes. The Premises shall include only the portion of the Tidelands
located under a Residential Pier plus up to ten feet (10') of boatable berth
space around the dock and float area. The ten feet (10') of boatable berth
space shall be reduced to the extent an adjacent property line projects
within the ten foot (10') area, or other obstructions (e.g., sediment build
up, beach location, etc.) that cause the ten foot (10') area, in the sole and
absolute discretion of the City Manager, or his /her designee, to be
unusable for purposes of the calculation. In no event shall the rear of the
Residential Pier be included within the Premises.
(5) Private Waterways means privately owned submerged lands or
submerged lands subject to recorded easements for pier and slip
purposes.
(6) Rent means the annual fair market rent charged on a square footage
basis for the use of the Premises.
(7) Residential Pier means a pier used by the owner or occupant(s) of the
abutting residentially zoned upland property. A Residential Pier shall
include the entire pier system, including, but not limited to, the float,
gangway, gangway landing, pier, pier platform and internal area of a
slip(s).
(8) Tidelands means certain tidelands and submerged land (whether filled or
unfilled), located in the City of Newport Beach, County of Orange, State of
California granted to the City of Newport Beach, as trustee, by the State of
California, pursuant to the Tidelands Grant.
(9) Tidelands Grant means uncodified legislation related to the State of
California's grant of certain rights in the Tidelands to the City of Newport
Beach, including, without limitation, the Beacon Bay Bill (Chapter 74 of the
Statutes of 1978, as amended [citations omitted]).
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STATE. OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
1, Leiiani 1. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2012 -120 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 11'h day of December, 2012, and that the
same was so passed and adopted by the following vote, to wit:
Ayes: Hill, Rosansky, Curry, Henn, Mayor Gardner
Noes: Daigle
Recuse: Selich
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 14'h day of December, 2012,
41� , /Sw�
City Clerk
Newport Beach, California
(Seal)