HomeMy WebLinkAbout05 - Balboa Yacht Basin Rental AdjustmentsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. s
November 12, 2002
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Harbor Resources Division (City Manager's Office)
Tony Melum, Division Manager, 644 -3041 tmelum @city.newport- beach.ca.us
SUBJECT: BALBOA YACHT BASIN RENTAL ADJUSTMENTS
ISSUE:
What rent level is appropriate for the facilities at the City -owned Balboa Yacht Basin?
RECOMMENDATION:
Rescind Resolution 2001 -89 and adopt Resolution 2002 -_ adjusting the slip and
apartment rental rates at the Balboa Yacht Basin.
DISCUSSION:
In 1982, the City entered into a loan and operations contract with the California
Department of Boating and Waterways ( "DBW "). DBW loaned the City $2.5 million
dollars to renovate the Balboa Yacht Basin. The City agreed to repay the loan from
gross revenues originating from fees and rentals charged to users of the Balboa Yacht
Basin.
Balboa Yacht Basin Rental Ajustments
November 12, 2002
Page 2
As part of the payment obligation, the City is required, as a condition of the contract
associated with the DBW loan, to complete the following:
'The Applicant shall each year conduct a survey of berthing charges which
prevail in the same market area as the project. The Applicant shall establish
berthing charges which are reasonable and not exorbitant."
Over the last 10 years the rental rates have been adjusted as follows:
1901 Slips
Apartment
Garages
1995 Slips
Apartment
Garages
1999 Slips
Apartment
Garages
$12.25 per foot per month (all sizes)
$900.00 per month
$90.00 per month
$14.50 per foot per month (all sizes)
$1,100.00 per month
$100.00 per month
31' to 35' feet, $15.00 per foot per month
40' to 45' feet, $16.00 per foot per month
60 and above, $18.00 per foot per month
$1,450.00 per month
$110.00 per month
2000 Slips 31' to 35' feet, $16.00 per foot per month
40' to 45' feet, $17.00 per foot per month
50 and above, $20.00 per foot per month
Apartment $1,500.00 per month
Garages $120.00 per month
2001 Slips 31' to 35' feet, $17.00 per foot per month
40' to 45' feet, $18.00 per foot per month
50 and above, $22.00 per foot per month
Apartment $1,600.00 per month
Garages $200.00 per month
The rates adopted by the City Council in 2001 are the rates paid today.
A survey of comparable marinas in Newport Harbor completed in August 2002 (see
attached) indicates that slip rates range from $11.00 per foot per month to as much as
$30.75 per foot per month depending on location and size of vessels. Essentially, all of
the marinas in Newport Harbor are at 100% occupancy. The BYB is at full occupancy
and has a waiting list of 130 persons.
Balboa Yacht Basin Rental Ajustments
November 12, 2002
Page 3
The City also rents 3 apartments and 34 garages at the Balboa Yacht Basin site. Based
on a local market survey, we propose that only the apartment rents (and not the garage
rents) be adjusted at this time.
Using data from the August 2002 survey and our own knowledge about "reasonable"
rates in the region, we have proposed the following rate schedule for November 2002
through at least October 2003:
2002 Slips 31' to 35' feet, $18.00 per foot per month
40' to 45' feet, $19.00 per foot per month
50 and above, $23.00 per foot per month
Apartment $1,700.00 per month
Garages $200.00 per month
Environmental Review: Not required.
Public Notice: Balboa Yacht Basin tenants have been notified of the recommended rate
increases. A letter has been sent to the Basin Yacht Club and notices have been
posted on the Basin bulletin board.
Prepared by:
Tony Melum, Division Manager
Submitted by:
6Dave - U , Assistant City Ma6acVr
Attachments: Attachment A — Resolution 2002 -
Attachment B — Marina Rate Comparisons Per Foot for the year 2002
Attachment A
RESOLUTION NO. 2002 -
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH
RESCINDING RESOLUTION NO. 2001 -89
AND ESTABLISHING
A REVISED SCHEDULE OF RATES FOR THE
BALBOA YACHT BASIN
WHEREAS, the City of Newport Beach owns, maintains and operates the Balboa
Yacht Basin located on Harbor Island; and
WHEREAS, the City of Newport Beach has renovated the Balboa Yacht Basin
with funds acquired from the State Department of Boating and Waterways; and
WHEREAS, the loan with the Department of Boating and Waterways requires the
City to periodically review berthing charges of public and privately owned boating
facilities in the general area of Newport Bay serving the same boating public and set
rates at levels comparable to those facilities that are reasonable and not exorbitant, and
WHEREAS, the City of Newport Beach has surveyed the berthing rates of other
marinas in Newport Harbor, now, therefore be it
RESOLVED by the City Council of the City of Newport Beach that the City of
Newport Beach sets the following rates which shall be effective on November 13, 2002
for Fiscal Year 2002 -03:
1. Slip rental rate shall be set as follows:
a) 31 to 35 foot slips = $18.00 per foot per month.
b) 40 to 45 foot slips = $19.00 per foot per month.
c) 50 foot slips and above = $23.00 per foot per month.
Monthly rental shall be calculated upon the appropriate rate times the vessel
length or slip length whichever is longer.
2. Slip tenants at the time of executing a rental agreement shall pay to the City
both the first and last month's rent based on the length of the boat or the slip (whichever
is greater), plus a $50.00 security fee.
3. Each slip or berthing space is individually metered for electricity. The tenant
will be responsible for any electrical usage at his rental slip. Electrical rates will be
billed by the City at the rate charged by Southern California Edison Company.
4. The detached garage storage spaces that are ancillary to the marina will be
charged at the rate of $200.00 per month.
5. The three apartments located on the Marina property will be billed at
$1,700.00 per month. Apartment tenants shall pay the City one month's rent in advance
and the equivalent of one month's rent as security deposit.
6. Resolution No. 2001 -89 is hereby rescinded, effective immediately.
ADOPTED this 12th day of November 2002.
TOD RIDGEWAY
Mayor of Newport Beach
ATTEST:
LAVONNE HARKLESS
City Clerk
Attachment 8
MARINA RATE COMPARISONS PER FOOT 2002
MARINAS
TOTAL SLIPS
TYPE RATE PER FOOT
American Legion
50
Inside (30' max)
$11.00
Outside (25 -41')
$12.00
Balboa Marina
132
28 -38'
$20.07
40 -49'
$22.58
Bay Shores
134
31'
$21.73
35'
$21.73
75'
$33.39
Bayside
98
31 -35'
$22.47
40 -45'
$27.45
60'
$32.60
De Anza
225
31' -35'
$16.71
35' -39'
$17.76
40' -50'
$20.00
Lido Marina
85
Inside 35' -45'
$25.00
Outside 36' -56'
$30.00
Lido Yacht Anchorage
265
31'
$15.50
35'
$17.50
40'
$19.50
45'
$20.50
Newport Dunes
448
30'
$18.50
35'
$17.50
40'
$22.50