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HomeMy WebLinkAbout2013-84 - Memorializing the Existing Loan of $9,676,658.50 From the General Fund to the Harbor Fund for the Dredging of Newport Harbor, Linda Isle and the Rhine Channel from 2011 to 2014RESOLUTION NO. 2013 -84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH MEMORIALIZING THE EXISTING LOAN OF $9,676,658.50 FROM THE GENERAL FUND TO THE HARBOR FUND FOR THE DREDGING OF NEWPORT HARBOR, LINDA ISLE AND THE RHINE CHANNEL FROM 2011 TO 2014 WHEREAS, the City Council of the City of Newport Beach ( "City ") approved the Five -Year Tidelands Capital Plan for Newport Harbor on November 27, 2012: and WHEREAS, the dredging of the Rhine Channel and Lower Bay was included as part of the Five -Year Tidelands Capital Plan; and WHEREAS, the City adjusted commercial and noncommercial tidelands rent for piers, moorings, marinas, and tidelands leases to fair market value in December 2012; and WHEREAS, the State Lands Commission ( "SLC ") approved the establishment of a Newport Harbor Capital Fund to collect the net incremental increase in revenue generated from the adjusted rental rates as well as any additional trust funds, at the City Council's discretion, in order to (1) reimburse the General Fund for monies loaned to the tidelands funds for Newport Harbor improvements and maintenance activities, if the loan request was formalized in advance of any expenditures from the General Fund and (2) fund the improvements and maintenance activities provided in the Five Year Tidelands Capital Plan for Newport Harbor; and WHEREAS, the SLC approved the establishment of the Newport Harbor Capital Fund on June 21, 2013; and WHEREAS, the cost of dredging for Lower Harbor, the Rhine Channel and Linda Isle from 2011 through 2014 is $9,676,658.50 ($11,214,658.50, less the $1,538,000.00 Orange County contribution); and WHEREAS, the General Fund loaned $9,676,658.50 to the Newport Harbor Capital fund for such dredging; and WHEREAS, the dredging loan was included in the information provided to the SLC on November 27, 2012, and the SLC did not object to the dredging loan; and WHEREAS, this dredging loan occurred prior to SLC's condition that all loans to the Harbor Fund greater than $1,000,000 be pre - approved by the SLC; thus, the City is not required to provide notice of the dredging loan to the SLC or seek the pre - approval of the dredging loan from the SLC. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City shall reimburse the General Fund from the Newport Harbor Capital Fund for the cost of dredging Lower Harbor, the Rhine Channel and Linda Isle from 2011 through 2014. Section 2: The total cost of such dredging is $9,676,658.50 ($11,214,658.50, less the $1,538,000.00 Orange County contribution). Section 3: The City Council finds 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. Section 4: 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 26th day of November, 2013. � 44/ Keith Curry, Mayor oi(a brown,