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HomeMy WebLinkAbout19 - Mooring Charges & Mooring TransfersCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 19 November 23, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949/644 -3002 or dkiff(a)newportbeachca.gov Office of the City Attorney David Hunt, City Attorney 949/644 -3131 or dhunt(ax7newportbeachca.gov SUBJECT: Mooring Charges, Mooring Transfers: Resolution 2010- Relating to Increasing Mooring Charges; Ordinance 2010 -_ Relating to Mooring Permit Transfers and Other Mooring Operations RECOMMENDATION: 1. Adopt Resolution 2010- _ establishing increased mooring charges for offshore and onshore mooring permits effective for the mooring permits issued in 2011; 2. Introduce Ordinance 2010 -_ relating to Mooring Permit Transfers and Other Mooring Operations and pass to 2nd Reading on Tuesday, December 14, 2010. DISCUSSION: The City's tidelands trust, also known as the Beacon Bay Bill (Chapter 74 of the Statutes of 1978), dedicates certain tide and submerged lands ( "Tidelands ") are held in trust by the City on behalf of the people of California. These lands include most of Lower Newport Bay, home to about 1,200 onshore and offshore moorings, as well as residential piers, commercial piers, and other operations. The Beacon Bay Bill directs that the City manage the Tidelands as follows: For the establishment, improvement, and conduct of a public harbor; and for the construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays, ways, and streets, and other utilities, structures, and appliances necessary or convenient for the promotion or accommodation of commerce and navigation. 2. For the establishment, improvement, and conduct of public bathing beaches, public marinas, public aquatic playgrounds, and similar recreational facilities open to the general public; and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any such uses. 3. For the preservation, maintenance, and enhancement of the lands in their natural state and the reestablishment of the natural state of the lands so that they may serve as ecological units for scientific study, as open space, and as environments which provide food and habitat for birds and marine life, and which favorably affect the scenery and climate of the area; and In the opinion of the City, the Beacon Bay Bill and the California Constitution (Article XVI, Section 6) obligates the City to charge appropriate and non - discriminatory rates for the use of tidelands, without conferring a benefit to private individuals for the use of public property in violation of the California Constitution's prohibition on gifts of public funds. On July 27, 2010, the City Council formed the Ad Hoc Committee on Harbor Charges ( "Committee "). The Council asked the Committee to review harbor charges, including, but not limited to: • Fees based on the cost of providing a service; • Mooring rates — onshore and offshore; • Balboa Yacht Basin charges — slips, garages, and apartments; and • Commercial piers not already on leases. The Committee analyzed fee -based charges in September and October, and brought a proposal to the City Council on November 9, 2010, to adopt updated charges. The measure passed 7 -0. The Committee's next work was to address charges based on private use of public tidelands, including the slips, garages, and apartments at the Balboa Yacht Basin and the Bay's onshore and offshore moorings. This agenda item focuses on moorings. ABOUT MOORINGS Moorings are locations (as well as equipment) to store vessels either off of local beaches (onshore moorings) or in the center of the Bay (offshore moorings). They consist of "tackle" (a "can," chains, weights, and other equipment) placed at a designated spot compliant with the terms of the mooring permit. There are two types of moorings in Newport Harbor: Onshore 439 moorings plus: • 46 assigned to the nity LF) $10[LF/Year (LF of the boat) 1996 The City currently holds 3 offshore and 2 onshore moorings. Moorings generate about $700,000 in revenue to the City's Tidelands Fund each year. The City's General Plan speaks to a broad goal that onshore and offshore moorings should remain a more affordable method of bringing boating to the general public (more affordable than berthing). This is in part described in the General Plan's Harbor and Bay Element, Section 5.2, which reads: Provide a variety of berthing and mooring opportunities throughout Newport Harbor, reflecting state and regional demand for slip size and affordability... Photo of onshore moorings Moorings are well -loved and well -used in Newport Harbor. Persons who hold 12 -month permits to moor their vessel in the Harbor include long -time boaters, some commercial operations, and more. Mooring permit holders in Newport Harbor own and maintain their own "tackle" — the cans, chains, and weights associated with their permit. The Newport Mooring Association (NMA) is an organization that represents more than half of all mooring permit holders. Rates and Transfers. The City traditionally has not re- assigned these 12 -month mooring permits each year when they expire. Instead, the City has allowed the mooring permit holder of record to maintain that permit indefinitely provided they (among other things) pay the annual fee, maintain the mooring, and, for a long period of time, maintained vessel on the mooring. In part as a result of this practice, mooring permit holders have transferred their permits from one person to another, often for a significant price ($10,000 to $60,000). The City's records show that since 2003, about 560 mooring permits have transferred, including: As noted in the chart, the price that the City charges for moorings has not increased since 1996. As a result, moorings remain an inexpensive way to place and keep a vessel in Newport Harbor. Mooring rates now are about 5% of the rate /cost that a boater would pay to store his or her vessel in a slip or berth. However, City staff and others have asserted that the low price has resulted in higher prices for mooring transfers, and indeed may have resulted in the transfer practice itself. The Orange County Grand Jury, in 2007, came to the City to examine the City's mooring management, issuing a report entitled, "Newport Harbor Moorings: Are They Held in the Public Trust or for Private Profit? The report was highly critical of the City's practices, alleging among other things that: tiJ • Private profits are being made from the current procedures used in transferring the mooring permits located on the public tidelands in Newport Harbor. • The mooring waiting list has not been reviewed or updated for years. • The last assessment of the fair market value of mooring permit fees took place almost ten years ago (from 2007); and • That mooring rates be based on a percentage of slip or berthing rates. The City took the Grand Jury's report seriously, and embarked with the City's Harbor Commission and NMA on a plan to address transfers (but not rates). The result of the Harbor Commission's work, which included many volunteer hours, is a "Transferability Document" set up as a proposed City ordinance. The Transferability Document and current transfer practices are summarized in Attachment D (note that the summary shows current practices which are not necessarily consistent with City rules and regulations). A redline of the Document itself is shown in Attachment E. The document has not been acted upon since it came into a near -final draft form in April 2009. BACK TO THE AD HOC COMMITTEE To address mooring charges (and transfers as a related item), the Ad Hoc Committee held a series of meetings with stakeholder groups. After listening to the stakeholders and others, they have made a recommendation to the City Council to: 1. Increase mooring rates over a five period duration (starting with an increase in 2019 and ending in advance of the 2015 billing) to roughly 14% of an average of low- to moderately - priced marinas' berthing rates in Newport Harbor. To arrive at this number, the Committee reviewed: ✓ The 2007 Orange County Grand Jury's report; ✓ Mooring to berthing rates in a number of harbors up and down the California coast, including San Diego, Mission Bay, Morro Bay, Monterey, and Pillar Point; ✓ Mooring practices at other locations, including Catalina Island; ✓ Rate proposals or concepts offered by other groups, including NMA; and ✓ Testimony offered in the public record at meetings associated with mooring charge increases. The below chart shows how the rates would increase over time from 5% of a Newport Harbor Marina Index average to 14 %. The diagram that follows shows comparable storage opportunities in and around Newport Harbor: Moorin_g:51ip Rath Difference/Mi Difference /Yea id $20,009 $19,000 $12.0N Lido D, Sims $10.000 ... .____....__... _..._— ......._... .____..___.. .__.__...._,. $8.000 _.._. ___._..._._.. .__ —___ $6.000 EYC Pate, Dunes Lax Rte Rrcpased Macring Rate - CPI Adjusted Ratem Year $_ . - , ... -_ __ ............. , ' 2010 2011 2012 2013 2099 2015 Assumes 2% inflation for berthing rates 2. Reduce and eventually eliminate the practice of transferring moorings from person to person without these moorings going to the Harbor's waiting list. The Committee's proposal would: ✓ Adopt an amended variation of the Harbor Commission's Transferability Document; ✓ Allow persons holding mooring permits to transfer each individual permit two (2) times between now and 2020. ✓ Allow an indefinite number of transfers within an immediate family. ✓ Allow a boater who has purchased a boat on a mooring to remain there up to six (6) months to find a new location for his or her boat. ✓ Prohibit all mooring transfers (except familial ones and one - for -one exchanges) after December 31, 2020. Marina Index: The Committee suggested that the Newport Harbor Marina Index include the following marinas in 2010 and 2011, but that the City's Harbor Resources Manager or his or her designee may adjust or substitute the marinas within the Index in 2012 and beyond via posting the indexed marinas on the City's website, provided that the substitute marinas are considered low- or moderately - priced marinas in Newport Harbor: • Newport Dunes Marina • Harbor Marina • Lido Village Marina • Lido Yacht Anchorage • Swales Marina; and • Bayside Village Marina 5 To ensure that the proposed pricing is appropriate, the Committee suggested that the City monitor the Newport Harbor mooring market to ensure that the proposed fee increases appropriately reflect market conditions. If in the opinion of the Harbor Resources Manager, the mooring increases within the Resolution are, over time, not reflective of mooring market conditions, the Committee recommended that the Harbor Resources Manager bring this to the attention of the City Manager and City Council for potential rate adjustment. City staff made a presentation to the City Council in a Study Session held Tuesday, November 9, 2010. The presentation to that Session is attached (Attachment C) for readers' review. Q & A FROM THE NOVEMBER 9, 2010 STUDY SESSION A number of questions came up at the Study Session from public comment worthy of answering here within the staff report: 1. Does the mooring to berthing ratio (1456) take into effect Newport Harbor's private ownership of tackle? Yes. A previous proposal used 17% to match the ratio in San Diego, and even the 17% was adjusted from about 18.5% given that mooring permittees in San Diego do not own their tackle. 2. Aren't moorings supposed to be an affordable alternative to berthing? Yes. The City's proposal is to go from 5% of berthing rates to 14 %, which is still a significantly lower cost alternative to berthing in a marina. Moorings today are not affordable given the high cost of acquiring one — they become affordable only once you have written a large check to acquire a mooring permit. 3. Has the City itself "sold" moorings? The City's records show that in 2002, the City chose to auction about three moorings rather than assign them to persons on the Wait List, in part because City staff at the time asserted that the wait list recipients would re -sell them immediately. This may not have been an appropriate practice. 4. Is an appraisal needed to set mooring rates? The City Attorney has said that an appraisal is not required. The Tidelands Trust does not require an appraisal. 5. The City presented a series of charts that outlined the Bay's financial needs in the coming years. Presenters criticized those charts because the City "left things off' among other concerns. a. Unsecured Property Tax. Recall that, of every $1 paid in property taxes, the City's share is about 15 -17 cents. The County allocates unsecured property taxes based on where people live, not where their unsecured property is stored. The State Lands Commission, which oversees the City's tidelands grant, has never directed that the City include property tax (secured or unsecured) as revenue to its Tidelands Fund. b. Tidelands Fund. The City is often criticized by some in the mooring community about how it attributes non- Harbor expenses to the Tidelands Fund as Tidelands expenses. People forget that the tidelands include much more than just the Harbor — they include all of the community's ocean beaches, which have significant costs associated with law enforcement, fire /EMS response, and lifeguarding. c. Federal Contributions towards Lower Newport Bay Dredging. The City's charts already deducted about $2M of the $25M total estimated cost of the LNB Dredging. Given the November 2, 2010 elections and the resulting political climate in Washington DC, it is unlikely that the City will receive much more money to dredge LNB. d. Sales Taxes. Recall that, of every $1 spent on a consumer product subject to California's Sales and Use Tax, the City gets one cent. For the tidelands to accrue $100 from sales tax, a person would have to spend $10,000.00 at a Tidelands point -of -sale location. The State Lands Commission, which oversees the City's tidelands grant, has never directed that the City include sales tax as revenue to its Tidelands Fund. As the City is criticized for revenues it may not have included, it also did not include significant expenses (city overhead) in an attempt to better balance the discussion). e. Did the City Council receive and review the Transferability Document? Yes. 0 f. Why are mooring charges proposed to be increased, but not other properties? The Committee's workplan includes updating mooring charges plus: • Balboa Yacht Basin slips, apartments, and garages. • Cost of service -based fees. • Commercial docks and commercial permits. The Committee has asked the City Attorney to review the legal aspects of adjusting charges to residential piers as well as the rentals of residential piers in a commercial way. Residential piers will be addressed after this specific Committee finishes its specific work program. ABOUT THE NMA'S LETTER OF 11 -15 -2010 TO THE CITY COUNCIL The NMA sent a letter to the City Council on November 15, 2010, asking that the Council consider an alternative rate proposal as follows: • Offshore moorings would go from $20 /LF /year to $30 /LF /year • Onshore moorings would go from $10 /LF /year to $15 /LF /year • A new charge would be created — a charge on "boats tied to private piers" - $30 /LF /year. • Commercial Marinas— "included in slip fees and marina rent" NMA estimates that such an action would generate $3.591M in the coming year. A major assumption that NMA makes is whether the City can charge a private pier permit holder any amount (in this case, $30 /LF /year) to dock the permittee's own vessel on the pier. A full $2.583M is assigned to this assumption, which includes persons storing /renting other individuals' boats on their residential pier. Those statements aside, City staff asserts that the Committee's proposed rate for moorings is appropriate and should, by 2015, reflect fair market value. Addressing residential piers, commercial piers, and rentals of residential piers is not a part of the Committee's recommended action at this time. Fiscal Impact: If the rate proposals are adopted, by the end of five periods, revenue from moorings will increase to roughly $2.074M from approximately $700,000 today. Environmental Review: This is not a project under CEQA. Public Notice: This agenda item has been noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Submitted by r Dave Kiff City Manager Attachments: A - Resolution 2010- B - Ordinance 2010 - C - Study Session presentation (11 -9 -2010) D — Summary of Mooring Practices and Transfer Alternatives E — Redline of the April 2009 Version of the Transferability Document F — Memorandum from the City Attorney with redline of Proposed Ordinance 2010- V) Attachment A RESOLUTION 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RELATING TO HARBOR CHARGES, SPECIFICALLY ONSHORE AND OFFSHORE MOORINGS WHEREAS, the City's tidelands trust, also known as the Beacon Bay Bill (Chapter 74 of the Statutes of 1978), dedicates certain tide and submerged lands ( "Tidelands ") to be held in trust by the City on behalf of the people of California; and WHEREAS, the Beacon Bay Bill directs that the City manage these lands as follows: (1) For the establishment, improvement, and conduct of a public harbor; and for the construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays, ways, and streets, and other utilities, structures, and appliances necessary or convenient for the promotion or accommodation of commerce and navigation. (2) For the establishment, improvement, and conduct of public bathing beaches, public marinas, public aquatic playgrounds, and similar recreational facilities open to the general public; and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any such uses. (3) For the preservation, maintenance, and enhancement of the lands in their natural state and the reestablishment of the natural state of the lands so that they may serve as ecological units for scientific study, as open space, and as environments which provide food and habitat for birds and marine life, and which favorably affect the scenery and climate of the area; and WHEREAS, the City believes that effective management and conduct of a public harbor obligates it to charge appropriate and non - discriminatory rates for the use of tidelands, without conferring a benefit to private individuals for the use of public property in violation of the California Constitution's prohibition on gifts of public funds; and WHEREAS, the City believes that there are at least two types of fees or charges in the Harbor — fees based on the cost of providing a service (such as processing a regional general permit) and charges based on the fair market value use of a public asset (such as some commercial pier charges, mooring charges and more); and WHEREAS, the City believes that various harbor activities should be set at or near fair market value to avoid granting or conveying Tidelands to any private party; and WHEREAS, the City Council formed the Ad Hoc Committee on Harbor Charges ( "Committee ") on July 27, 2010 with the intent to have the Committee review harbor charges, including, but not limited to: Fees based on the cost of providing a service; Mooring rates — onshore and offshore; 3 Balboa Yacht Basin charges — slips, garages, and apartments; and Commercial piers not already on leases. WHEREAS, the Committee believes that onshore and offshore moorings should remain a more affordable method of bringing boating to the general public (more affordable than berthing), consistent with the City's General Plan (Harbor and Bay Element, 5.2 — Provide a variety of berthing and mooring opportunities throughout Newport Harbor, reflecting state and regional demand for slip size and affordability); and WHEREAS, the Committee has held public meetings with stakeholder groups and has made a proposal to the City Council to update fees that are based on the cost of providing a specific service, and these charges were updated by the full City Council on November 9, 2010; and WHEREAS, the Committee has held public meetings with stakeholder groups and has made a proposal to the City Council to increase mooring rates over a five period duration (starting with an increase in 2011 and ending in advance of the 2015 billing) to roughly 14% of an average of low- to moderately - priced berthing rates in Newport Harbor. To arrive at this number, the Committee reviewed: • The 2007 Orange County Grand Jury's report entitled, Newport Harbor Moorings: Are They Held in the Public Trust or for Private Profit? Which recommended, among other things, that mooring rates be based on a percentage of slip or berthing rates (Recommendation R -6); and • Mooring to berthing rates in a number of harbors up and down the California coast, including San Diego, Mission Bay, Morro Bay, Monterey, and Pillar Point; and • Rate proposals or concepts offered by other groups, including the Newport Mooring Association; and • Testimony offered in the public record at meetings associated with mooring charge increases. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Newport Beach that the above recitals are true and correct and constitute findings that support the action taken herein; and be it also RESOLVED that the City Council of the City of Newport Beach finds that the fair market value of offshore moorings within Newport Harbor is 14% of a Newport Harbor Marina Index Rate and that the fair market value of onshore moorings is half of that resulting dollar amount; and be in also RESOLVED that City Council of the City of Newport Beach hereby amends the City's Master Fee Resolution to set the following charges for offshore and onshore moorings: 1. Starting with the 2011 billings (sent out in mid - January 2011), a one year permit for an offshore mooring shall be set at 6.9% of the Newport Harbor Marina Index while a one -year permit for an onshore mooring shall be set at half of that resulting dollar amount; and 2. 2012 billings shall be set at 8.7% of the Newport Harbor Marina Index while a one - year permit for an onshore mooring shall be set at half of that resulting dollar amount; 9 3. 2013 billings shall be set at 10.5% of the Newport Harbor Marina Index while a one - year permit for an onshore mooring shall be set at half of that resulting dollar amount; 4. 2014 billings shall be set at 12.3% of the Newport Harbor Marina Index while a one - year permit for an onshore mooring shall be set at half of that resulting dollar amount; and 5. 2015 billings shall be set at 14.0% of the Newport Harbor Marina Index while a one - year permit for an onshore mooring shall be set at half of that resulting dollar amount; and 6. That successive years' rates be set at 14.0% of the Newport Harbor Marina Index while a one -year permit for an onshore mooring shall be set at half of that resulting dollar amount and both offshore and onshore moorings shall be adjusted annually within the Master Fee Resolution based on the Newport Harbor Marina Index; and be it further RESOLVED by the City Council of the City of Newport Beach that it hereby directs that the Newport Harbor Marina Index include the following marinas in 2010 and 2011, but that the City's Harbor Resources Manager or his or her designee may adjust or substitute the marinas within the Index in 2012 and beyond via posting the indexed marinas on the City's website, provided that the substitute marinas are considered low- or moderately - priced marinas in Newport Harbor: • Newport Dunes Marina • Harbor Marina • Lido Village Marina • Lido Yacht Anchorage • Swales Marina; and • Bayside Village Marina ....and be it further RESOLVED by the City Council of the City of Newport Beach that Harbor Resources staff is directed to monitor the Newport Harbor mooring market to ensure that this Resolution's fee increases appropriately reflect market conditions. If in the opinion of the Harbor Resources Manager, the mooring increases within this Resolution are, over time, not reflective of mooring market conditions, the Manager shall bring this to the attention of the City Manager and City Council. ADOPTED this 23rd day of November, 2010. KEITH CURRY Mayor of Newport Beach ATTEST: LEILANI BROWN City Clerk �0 I Attachment B ORDINANCE NO. 2010 -_ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 17.01.030 OF CHAPTER 17.01, SECTION 17.40.020 OF CHAPTER 17.40 AND SECTION 17.60.040 OF CHAPTER 17.60 OF TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO MOORING PERMITS The City Council of the City of Newport Beach finds that: 1. The Management and Stewardship of Newport Harbor has been granted under Tidelands Trust Legislation by the State of California. Vessel moorings on the City Tidelands are intended to provide a lower -cost alternative to boat slips in Newport Harbor and to provide boating accessibility to a larger segment of the population. Historically, starting from the 1930's, mooring transferability was limited under the Municipal Code to allow an individual mooring permit holder to convey the existing mooring hardware, and to transfer the mooring permit to another individual only in conjunction with the sale of the vessel assigned to the mooring. 2. When this system was developed, demand for moorings was minimal. Initially, an individual could request permission to install privately owned mooring equipment and would be assigned a location and a mooring number. Over the next thirty years when the designated mooring areas were filled, an informal wait list was established. However, as the demand increased over several decades, a significant value was associated with possession of a mooring permit that was far in excess of the value of the mooring hardware. As the value of the permit increased, the ability to acquire a permit from the wait list decreased significantly. 3. When there is great demand for moorings, a value is associated with a mooring permit well in excess of the annual permit fees. This value may be inappropriate in light of the California Constitution's prohibition against the gifting of public funds or assets as set forth in Article XVI, Section 6 of the state Constitution. This amendment to the mooring permit and transferability provisions of Title 17 provides for a revised and short-term process begins to bring the City's administration of moorings into compliance with Article XVI, Section 6. It also identifies fees, rents and charges that will assist in funding Harbor maintenance and dredging projects and Harbor amenities. NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: [A08 -00136]Redline of AMA Draft ❑ ith Staff Changes and Comments. 10.11.16 ........._... ........ _ _ _ I I SECTION 1: Section 17.01.030(A) (4) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: 17.01.030 Definition of Terms. A. Definitions: A. 4. Assigned Vessel. The term "Assigned Vessel' shall mean a vessel lawfully registered, owned or documented to a Permittee to occupy a designated mooring or berthing location in Newport Harbor. (Renumber subsequent subsections to maintain correct order.) SECTION 2: Section 17.01.030(J) (15) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: J. Definitions: M. 15. Multiple Vessel Mooring System. The term "Multiple Vessel Mooring System" shall mean a floating platform secured to a single point mooring only which allows multiple vessels to be secured that are shorter in overall length than the side of the platform to which the vessels are to be moored. (Renumber subsequent subsections to maintain correct order.) SECTION 3: Section 17.01.030(0) (11) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: O. Definitions: S. 4. Sub - Permits. a. Sub - Permits - Long Term. The term "Long Term Sub - Permit' shall be defined as those mooring sub - permits issued by the City for the temporary use of a Deemed Vacant or a Noticed Vacant mooring for a period of between one (1) month -to- twelve (12) months. b. Sub - Permit - Short Term. The term "Short Term Sub - Permit' shall be defined as those mooring sub - permits issued by the City for a temporary use of a Deemed Vacant or Noticed Vacant mooring for any period of time less than thirty (30) days as determined by the Harbor Resources Manager. (Renumber subsequent subsections to maintain correct order.) A06- 001361 Mooring Admin Ord -Final Clean for 101123 Council Mtg /d SECTION 4: Section 17.40.020 of Chapter 17.40 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.40.020 Live - Aboards Prohibited. A. Live - aboards shall not be permitted at piers that are bay ward of residentially zoned areas. No person shall live- aboard any vessel on an onshore mooring. (Ord. 2008 -2 § 1 (part), 2008) B. Live - aboards are prohibited on moorings subject to long -term mooring sub - permits as noted in Section 17.60.040(G). D. Live - aboards may be permitted on short term on moorings subiect to short term sub - permits according to Section 17.60.040(G). (Renumber subsequent subsections to maintain correct order.) SECTION 5: Section 17.60.040 of Chapter 17.60 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 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 without first having obtained a mooring permit from the Harbor Resources Manager or having othervvise complied with this section. A mooring permit is in the nature of license for the temporary use of a specific location within the Newport Harbor. Any work described and authorized in the permit must be completed within the time designated in the permit. B. Issuance of Permit — Conditions. The Harbor Resources Manager, 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. 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, except as noted in Section 34 below. In addition, the Lido Isle Community Association ( "LICA ") has permits for on -shore moorings on Lido Isle. Other organizations also have mooring permits in the harbor as well. These organizations shall hold their A08- 001361Mooring Admin Ord -Final Clean for 101123 Council Mig f-2 respective permits under the Yacht Club, or respective organization name, for the moorings identified by Harbor Resources as under their respective control at the time of enactment of this ordinance. 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. Mooring records shall be made available for audit by the Harbor Resources Manager during regular business hours upon request. b. Mooring of a Tender. A 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. C. Multiple Vessel Mooring System Program. The Harbor Resources Manager may approve multiple vessel mooring system in the mooring areas of Newport Harbor Yacht Club and the Balboa Yacht Club. An application for a multiple vessel mooring system shall be submitted in writing to the Harbor Resources Manager, who shall evaluate the application based upon standards he shall have established. 2. Permit Requirements. Each mooring permit shall be issued to one natural person ( "Mooring Permittee ") who shall be responsible for all activities related to the mooring permit. To the satisfaction of the Harbor Resources Manager, the Mooring Permittee shall: a. Identify on the permit the full legal name, current address, current telephone number and current e-mail address if one exists, of the Mooring Permittee; b. Agree to be responsible for permit fees, maintenance and repair of mooring equipment; C. Grant permission to the City of Newport Beach to temporarily assign the mooring to another vessel when it is unoccupied through the issuance of a mooring sub - permit; d. Agree to defend and indemnify the City of Newport Beach and any other government entity with jurisdiction against any A08-00136I Mooring Admin Ord -Final Clean for 101123 Council Mtg claims or losses arising out of, or related to the use of the mooring permit except where the claim or loss arises out of the sole negligence and /or sole misconduct of a person assigned the mooring as a mooring sub - permittee under subsections G and /or H below; e. Provide proof of liability insurance on vessel as determined by the City's Risk Manager, and; f. Provide registration or other proof of controlling possessory right in the Assigned Vessel, all to the satisfaction of the Harbor Resources Manager. 3. Permittee/Transferee Qualifications. A mooring permit shall be held by, or transferred to, only the following persons: a. A natural person holding title to an Assigned Vessel; b. An executor or administrator carrying out the terms of a will or administering a probated estate that holds title to an Assigned Vessel, 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 title to an Assigned Vessel so long as all trustors are natural persons and the primary Mooring Permittee shall be the trustee of the trust; d. An approved transferee whose vessel and /or mooring are subject to any of the terms and conditions stated in 17.60.040(E); e. A marine contractor or marine support service provider, holding title to an Assigned Vessel used to provide current or ongoing harbor infrastructure and marine or fishing services (such as maintenance and dredging) as authorized under the provisions of a Marine Activities Permit; f. The Balboa Yacht Club, Newport Harbor Yacht Club and LICA - only for those moorings assigned by the City of Newport Beach within certain established mooring areas or locations, prior to the enactment of this amended ordinance. The boundaries of these designated mooring areas may not be expanded. The boundaries of these mooring areas are graphically depicted and defined in Exhibit "A" hereto and A08- 001361Mooring Admin Ord— Final Clean for 101123 Council Mtg I S are hereby incorporated by reference. C. Plans and Specifications Required. No 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 Harbor Resources Manager and at a location approved by the Harbor Resources Manager; 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 Harbor Resources Manager. D. Unpaid Fees. When the permittee is in arrears for a period of ninety (90) days or more, the Harbor Resources Manager may, at his discretion, revoke the permit upon five (5) days written notice to the permittee by first class mail to the address shown on the permit. If the mooring is not removed by the permittee within thirty (30) days after cancellation of the permit, then it shall be deemed abandoned and the title thereto shall vest in the City. Mooring Permittee may apply for reimbursement for the value of the mooring equipment pursuant to subsection M below. E. Transfer of Permit. No permittee shall transfer a permit for a mooring or buoy granted under the provisions of this chapter, except, a permit may be transferred prior to January 1, 2021 up to two times if the Permittee intends to sell or otherwise transfer, or has sold or transferred, ownership of the Assigned Vessel and does not intend to replace the Assigned Vessel with another vessel owned by Permittee. Permits shall not be transferred without the prior written approval of the Harbor Resources Manager. Prior to January 1, 2021, the Harbor Resources Manager shall approve the transfer of a mooring permit under the procedures set forth below: 1. The Mooring Permittee (or, if the Permittee is deceased or incapacitated, the transferee) shall submit to the Harbor Resources Manager: a. A completed mooring transfer form (on the form provided by the Harbor Resources Manager); and b. Documentation that the proposed new Mooring Permittee (Transferee) qualifies as a Mooring Permittee under section B (3) above. A08-00136I Mooring Admin Ord- Final Clean for 101123 Council Mlg 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 Harbor Resources Manager 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 a shore mooring, a photograph of the Assigned Vessel if it is not subject to vessel registration laws; or b. If such documentation is not received by the Harbor Resources Manager within the sixty (60) day period, then the mooring may be deemed vacant and may be rented pursuant to sub - sections G) and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M below. 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 Harbor Resources Manager that the Assigned Vessel has been removed from the mooring and before a new vessel may be placed on the mooring shall submit to Harbor Resources Manager 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 a shore mooring, a photograph of the new Assigned Vessel if it is not subject to vessel registration laws; or b. If the documentation is not received within 60 days of a transfer, the mooring may be deemed vacant and may be assigned pursuant to subsection G and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M below. A08 -001361 Mooring Admin Ord —Final Clean for 101123 Council Mig I 4. The transfer request shall be denied unless Mooring Permit fees are paid current; required mooring inspections are current; required maintenance and repairs are complete and there are no derelict or unauthorized vessel(s) on the mooring. 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 Harbor Resources Manager 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 specific mooring location has not been previously transferred more than one (1) time between the effective date of this ordinance and December 31, 2020; C. The transferee has met all the qualifications and conditions for issuance of a permit in subsection B above. 7. The Harbor Resources Manager 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 Harbor Resources Manager may approve the changing of an Assigned Vessel on the permit, subject to the requirements of Section B above, without any transfer fee imposed by the City. F. The following shall apply on and after January 1, 2021. Mooring transfers shall be prohibited, except: a. When transferred from a natural person to another member of his or her immediate family along with the Assigned Vessel, which shall be defined for the purposes of this section as the heirs at law to the second degree of consanguinity; or b. When a natural person has taken title to an Assigned Vessel already on a mooring, that natural person has up to six (6) months A08 -001361 Mooring Admin Ord -Final Clean for 101123 Council Mtg IZ from the date of taking title to remain on the mooring. After six (6) months, the Harbor Resources Manager or his or her designee shall direct that the vessel be moved off the mooring and that the mooring be assigned through on the Mooring Interest List. 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 Section B (3) (e), City shall have the authority to assign vacant moorings to sub - permittees pursuant to the following provisions-- 1. Deemed Vacant Moorings. City may assign Deemed Vacant Moorings through the issuance of long term sub - permits at its own discretion for any period of time up to one (1) year. Long term sub - permits may be renewed upon availability. The Mooring Permittee may reclaim its mooring upon thirty (30) days prior written notice to City 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, 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 Section E above. 2. Noticed Vacant Moorings: City may assign Noticed Vacant Moorings at its own discretion through the issuance of a mooring sub- permit for any period of time, either long or short term, up to the reoccupation date on Mooring Permittee's written notice, or the twenty -four (24) hour written notice per subsection (b) below. 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 City of its intent to vacate its mooring for fifteen (15) days or more. A08- 0013dl Mooring Admin Ord - Final Clean for 101123 Council Mtg !0, 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 Mooring Permittee provides notice, the Mooring Permittee may reclaim the assigned mooring on the reoccupation date indicated in his /her written notice, or, if the Mooring Permittee r returns prior to or after the reoccupation date, upon twenty -four (24) hours written notice to the City. H. Procedures for Mooring Sub - Permit Issuance. Any natural person wishing to use a mooring pursuant to the issuance of a sub - permit must enter into a written mooring sub - permit agreement with the Harbor Resources Department that includes the following: 1. A written representation of the current gross vessel weight which shall be satisfactory to the Harbor Resources Manager. 2. An agreement 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, and that requires the mooring sub- permittee to provide proof of liability and marine pollution insurance, registration or other proof of ownership, and an equipment damage deposit, all to the satisfaction of the Harbor Resources Manager. 3. The repair of any damage to the mooring equipment shall be paid by the mooring sub - permittee. 4. Mooring sub- permittees shall provide approved mooring lines which shall be removed at the end of the rental period. 5. A mooring sub - permit agreement is renewable based on availability. Upon return of the Assigned Vessel to the mooring, the Harbor Resources Department 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 agreement for any reason. Mooring sub - permittees accept an indefinite term at their own risk. 6. The sub- permit fee will be based on a rate established by the Newport Beach City Council and delineated in the Master Fee Schedule Resolution. A08 -001361 Mooring Admin Ord - Final Clean for 101123 Council Mig )'D 7. Live - aboards are not permitted on moorings subject to a long term mooring sub - permits. Live - aboards may be temporarily permitted on moorings subject to short -term sub - permits pending vessel inspection and subsequent re- inspection per each short -term sub - permit renewal. 8. Short term sub - permit renewals are not guaranteed and are subject to availability. 9. Mooring sub - permits that are available for thirty (30) days or more shall be first offered to persons on the Interest List, as defined below, as a priority. Non - acceptance of such mooring assignments shall not cause such persons to lose their position on the Interest List. 10. Mooring sub - permits that are available for less than a thirty (30) day period shall be offered to the public on a first -come, first -serve basis. 11. A mooring may be loaned free of charge by the Mooring Permittee to a vessel other than the Assigned Vessel for no more than thirty (30) consecutive days provided that: 1) The Mooring Permittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring; 2) The Mooring Permittee has not loaned the mooring for more than sixty (60) days in the twelve (12) month period that immediately precedes the commencement of the current mooring loan; and 3) The vessel owner requesting a loan has not previously been the recipient of loans for more than ninety (90) days in the previous twelve (12) months. I. Mooring Interest List 1. The Mooring Interest List ( "Interest List") is the list or lists of natural persons as of the date of the adoption of this ordinance, who wish to obtain a mooring permit as permits revert to the City or who wish to be assigned a mooring on a long term basis from the City through the issuance of a mooring permit or mooring sub - permit. On and after the effective date of this ordinance, the Interest List(s) shall be maintained for natural persons interested in securing a mooring permit, or being temporarily assigned the use of a Deemed Vacant or a Noticed Vacant Mooring. 2. Any person wishing to be added to the Interest List must do so by completing a written application and paying a fee to be established by resolution of the City Council. Any person may be removed from A08 -001361 Mooring Admin Ord -Final Clean for 101123 Council Mtg I i the Interest List by producing a written signed notice to the Harbor Resources Manager at any time, requesting to be removed from the Interest List. 3. Each even numbered calendar year, the City shall send one notice to all persons on the Interest List requesting confirmation of continued interest and /or updating of contact information. If there is no response to the thirty (30) day notice along with payment of the administrative fee referenced in 1 (4) below, then the person shall be removed from the Interest List. 4. Each person on the Interest List is responsible to keep the City informed of any changes to his or her mailing address or other contact information and must pay a fee for the administrative costs to maintain the Interest List to be established by resolution of the City Council. Nonpayment of such fee shall cause the person to be removed from the Interest List. 5. Persons on the Interest List will be notified of revoked mooring permit or mooring sub - permit or, surrendered or abandoned moorings and given the opportunity to receive a mooring permit or sub - permit. 6. If no person on the Interest List accepts a mooring permit according to 17.60.040( 1) the Harbor Resources Department may auction the mooring and issue a permit for the mooring to the highest qualifying sealed bid. J. Mooring Permit Transfer Charge. The City shall charge the Mooring Permittee for the right to transfer a mooring permit under section E above in an amount equal to fifty percent (50 %) of the annual permit fee as determined by the Master Fee Schedule. A mooring permit transfer charge shall not be required if: 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; or 2. The transfer is made under Section 17.60.040.E.7 -8. K. 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 Harbor Resources Department of his or her intent to surrender the mooring permit, otherwise the provisions of Section F regarding a vacant mooring shall apply. AO"0136 1 Mooring Admin Ord —Final Clean for 101123 Council Mfg J� 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 Mooring Permittee the fair value for the mooring equipment, less fees owed, as provided in subsection M below. L.. Revocation or Surrender of Permit. 1. Grounds for Revocation. A Mooring Permit or sub - permit may be revoked upon any of the following grounds set forth in Section 17.70.020 or for any of the following: a. The moored vessel, or the mooring equipment has been determined to violate the applicable Mooring Regulations in Section 17.25.020, and the Mooirng Permitee or Sub - permittee has not made the necessary corrections or repairs within the time required; C. The mooring Permittee has failed or refused to allow an inspection of the vessel to determine if it is seaworthy and operable, a public nuisance or in compliance with applicable marine sanitation device requirements; d. Living aboard a vessel assigned to a mooring without a live - aboard permit unless otherwise noted in Section 17.60.040(G). 2. Notice and Hearing. In the event the Harbor Resources Manager determines there are grounds to revoke a permit issued pursuant to this chapter, the Harbor Resources Manager shall proceed in the manner described by Section 17.70.020. 3. Upon revocation, it shall be the duty of the Mooring Permitee 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 Harbor Resources Manager 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 A08.00136✓ Moodng Admin Ord —Final Clean for 101123 Council Mtg collected in any court of competent jurisdiction or recovered by the City from the proceeds of sale of the vessel or mooring equipment. 4. During any revocation proceeding under this Section L, if the mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager. M. 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 E. above, or for any other reason, the following shall apply: 1. The Mooring Permittee shall be entitled to recover all of Mooring Permittee's mooring equipment within thirty (30) days of reversion. 2. If Mooring Permittee does not recovery his or her mooring equipment, 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 Harbor Resources Manager and as set in the City's Master Fee Resolution. 3. The mooring shall be assigned to an individual form the Interest list pursuant to subsection I above. 4. No mooring that reverts to the City for assignment off of the Interest List, or by any other appropriate procedure, shall have any right to a later assignment by a Mooring Permittee whatsoever. SECTION 5: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 7: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2010, and adopted on the _ day of 2010, by the following vote, to wit: AYES, COUNCILMEMBE A08- 001361Mooring Admin Ord -Final Clean for 101123 Council Mtg NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MI., APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By � a� � — David R. Hunt, City Attorney ATTEST: CITY CLERK A08- 00136/ Mooring Admin Ord -Final Clean for 101123 Council Mtg f-v t"` 0 �' Y FRO FRONT 5 ..11 Harbor Charges: 10 Moorings Proposal November 9, 20 10 Study Session Newport Beach City Council rt W F4�- Harbor Charges: 10 Moorings Proposal November 9, 20 10 Study Session Newport Beach City Council rt W What we will cover • Ad Hoc Committee's Workplan • Focus on Moorings • Key Principles • Methodology of proposed rate increase • About Transfers • Rate Comparisons o Other methods About Harbor Costs and Revenues Seeking Council Direction Ad Hoc Committee Workplan •Phase o Review /implement new charges: • Cost of Service - Based. Review /modify /adopt MGT proposal (adoption Nov 9, 20 10) • Fair Market Value (examples): * Balboa Yacht Basin slips, apartments, garages — set to market, implement slip changes over 3 periods (first increase Jan 2011). Moorings — onshore and offshore (first increase effective for 2011). y Ad Hoc CommitteeWorkplar. P(cont'd) o Analysis: ° Review tidelands commercial categories with State Lands Commission. Oversee appraisal at Lido MarinaVillage's tidelands below commercial docks. Consider protected Harbor Fund for any incremental increase in revenue — dedicate for dredging, harbor amenities and harbor services. �f� Committee Workplan — cont'd • Phase II • Implement LMV appraisal via lease. • Appraise Commercial Piers and other commercial harbor uses: • Move to "percentage of gross" lease system for those properties that are now under a per square foot rate. Implement long -term capital plan for harbor amenities and harbor services. o Review actions to date and determine whether any need revisions to maintain equity and fairness. c� Not under Committee purview Making a determination (re: pricing or policy) regarding residential pier fees and rentals of residential piers for commercial purposes. However, the Committee has asked the City Attorney to review the legal issues associated with residential piers. About Newport Harbor Moorings s� Two types: Onshore (439 moorings plus LICA) • $10 /LF /Year (about $70K/year in revenue) LICA has 792 billable LF (about $8K /year) o Offshore (539 moorings plus BYC /NHYC) $20 /LF /Year — about $620K/year in revenue BYC has 72 moorings - 2,497 billable LF Assume that BYC bills members at —$9- I O/LF/Mo — unconfirmed NHYC has 70 moorings - 2,542 billable LF City holds 3 offshore and 2 onshore moorings. i C, f About Newport Harbor Moorings Rates last increased in 1996 Annually renewable 12 -month permit Permit holder must maintain tackle /can Wait List Some permits transferred /"sold" from person to person. OC Grand jury - 2007 ,F Issued report entitled: Newport Harbor Moorings: Are They Held in the Public Trust or for Private Profit? Findings included: Private profits are being made from the current procedures used in transferring the mooring permits located on the public tidelands in Newport Harbor. The mooring waiting list has not been reviewed or updated for years. The last assessment of the fair market value of mooring permit fees took place almost ten years ago (from 2007). Moorings — Committee Principles Outcome should: o Be fair, reasonable, and legally defensible. o Be phased in over time to minimize economic disruption. o Moorings should be a more affordable alternative for boat ownership and harbor access than slips. • Be responsive to market conditions. • Result in a charge that is annually updated. Proposal: Offshore moorings • Set at 14% of an average of mod-low marina slip rates in the harbor (they are now at about 5%). Onshore Moorings Half of offshore pricing. Implement increase over five periods. When "caught up" should catch up to 14% of slip rates in 2015. Review annually to ensure that pricing is appropriate. Consistent with OC Grand jury's recommendation that: o (mooring permits be) fair market value ... e.g., based on a percentage of the cost of a slip. 1 i 7F r posed Rates (40' Mooring Mooring:Slip Ratio DifferencelMo Difference /Year From 5% to 14% ... $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 2010 2011 2012 2013 2014 2015 Assumes 2% inflation for berthing rates I f ux How Affordable are Moorings? • They area "more affordable" alternative (5% of slip rates) but: a Only after a buy -in. Barrier to entry is high: • Minimal to no movement of Wait List; ® Market pricing on an annually renewable offshore mooring (surveyed June 2010, Craig's List): . Ranged from $32,500 to $60,000 * Average = $459167 * Average of 40' moorings = $339875 * Participant in 1 1 -2 workshop acquired a permit for $40K (a 50' mooring) a year ago. ux How Affordable are Moorings? • They area "more affordable" alternative (5% of slip rates) but: a Only after a buy -in. Barrier to entry is high: • Minimal to no movement of Wait List; ® Market pricing on an annually renewable offshore mooring (surveyed June 2010, Craig's List): . Ranged from $32,500 to $60,000 * Average = $459167 * Average of 40' moorings = $339875 * Participant in 1 1 -2 workshop acquired a permit for $40K (a 50' mooring) a year ago. ''! Moorings After Purchase $45,000 $40,000 $35,000 $30,000 $25,000 $20.000 $15,000 $10,000 $5,000 - - --------- Initial $40K "Purchase" jt Berthing Index Rate Lido Dry Slips BYC Rate, Dunes Lot Rate 2009 2010 2011 2012 2013 2014 2015 rf M� More about Transfers A common and traditional way to get a mooring at market price. Persons invest significant $ up- front, rather than wait on slow- moving Wait List. • Grand Jury in 2007 found: o Private profits are being made from the current procedures used in transferring the mooring permits located on the public tidelands in Newport Harbor. M� More about Transfers A common and traditional way to get a mooring at market price. Persons invest significant $ up- front, rather than wait on slow- moving Wait List. • Grand Jury in 2007 found: o Private profits are being made from the current procedures used in transferring the mooring permits located on the public tidelands in Newport Harbor. How a Transf®r f Occur • Has Boat, has Mooring permit • Wants to Sell • Advertises on Craig's List • Wants Boat, Mooring • Wait List doesn't move, so looks on Craig's List • Sees, contacts Person A • Sale conducted ($20 -50K) • Person A and B both get on title to boat • Go to Harbor Resources, amends permit to include both names. How ® Transfer Steps out of transaction. • Gets off title to boat. M Retains sole title to boat Goes to Harbor Resources, amends t to reflect just )n B's name. �i AQ r._ a Transferability Document • Proposed by Harbor Commission and Mooring Subcommittee. Extensive hours put in by volunteers on this document. • April 2009 draft = current draft. • Suggests (generally): • One transfer per permittee per year. • Person receiving the permit (transferee) cannot have more than 2 permits at transfer time. • City gets a share (share TBD, but based on annual mooring charge) of any mooring transfer. • Rentals - City may rent out vacant moorings, short -term and longer -term. '- oil AR4011 a Transfers: o Allow current permit holders one transfer to another person (not a family member) between now and 2015. o If a person purchases a boat on a mooring, they can have up to 6 months to stay on that mooring until they must relocate (similar to Balboa Yacht Basin rules). o No restrictions on transfers within immediate family. w� ® 93izt ® • ® r • • Adjust by Consumer Price Index since 1996 (LA- Riv-OC) o 40' mooring would go to $1,113.77 1year Comparing San Diego and Newport: o NMA's concept of proportionality. Uses SD as a comparison (population, # of berths, # of moorings) to assume demand in the region. ° "having more slips available (makes) moorings less desirable..." Auction: o End all annual renewals. • Invite closed bids on every mooring. • Current holder gets right of first refusal, must meet or exceed bid price. :j Ratio in Other Areas.,0 • Mission Bay Mooring rates are — 14% of slip rates Driscoll and Hyatt are marina comparisons. Mooring permit holders own /maintain tackle • Monterey Bay Mooring rates appear to be — 14.5% of slip rates Outer Harbor Moorings and Breakwater Cove are comparisons. Privately -held tackle in the Outer Harbor • Pillar Point Mooring rates are about — 15% of slip rates. Mooring district owns tackle. San Diego Mooring rates are — 18.5% of slip rates. SD Mooring Co owns mooring tackle. It would be -- 17% if adjusted to reflect private ownership of tackle. Morro Bay Mooring rates are about — 31.7% of slip rates. Proposed NH Marina Index (sampled June 20 10) Average of 1 . 1 • EMPORIA-- Nov 20 10 ••• • Newport Beach Marinas Bayshore Bayside Dunes Harbor Lido Lido Bayside Non BYB Slip Length BYB Marina Yacht Swales Village Marina Marina Marina Marina Average Village Anchor. Marina Price per foot per month 20 $ 23.80 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 21.16 22 $ 23.85 $ 23.75 j $ 19.50 $ 18.75 $ 20.00 $ 21.17 25 $ 16.00 $ 25.45 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 21.49 28 $ 23.75 $ 19.50 $ 18.75 $ 20.00 $ 20.50 29 $ 17.38 $ 23.75 $ 19,50 $ 18.75 $ 20.00 $ 20.50 30 $ 18.60 $ 31.65 $ 29.00 $ 24.00 $ 35.00 $ 18.75 $ 17.00 $ 25.00 $ 25.77 32 $ 18.00 $ 31.00: $ 29.00 $ 24.00 $ 35.00 $ 20.75 $ 25.00 $ 27.46 36 $ 18.00 $ 33.22 $ 31.25 $ 24,00 $ 35.00 $ 24,00 $ 26.00 $ 28.91 40 $ 19.00 $ 32.94 $ 39.62 $ 39.50 $ 37.50 $ 38.00 $ 26.50 $ 18.00 $ 32.00 $ 33.01 45 $ 19.00 $ 41.84 $ 39.50 $ 37.50 $ 38.00 $ 26.50 $ 20.00 $ 32.00 $ 33.62 46 $ 19.00 $ 42.00 $ 37.50 $ 38.00 $ 26.50 $ 35.00 $ 35.80 50 $ 23.00 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 35,00 $ 37.35 54 $ 25.56 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 37.94 55 $ 25.09 $ 42.00 $ 41.00 $ 41.00 $ 27.75 $ 37.94 60 $ 23.00 $ 50.34 $ 49.07 $ 42.00 $ 45.00 $ 45.00 $ 29.00 $ 43.40 Average of 1 . 1 • EMPORIA-- Nov 20 10 ••• • Harbor Costs, Harbor Revenues • Harbor costs include: • One -time capital projects (LNB, Rhine, more) • Ongoing expenses (Harbor Resources, etc) • Harbor revenues include: o Income properties: • Water - related . Moorings, marinas /commercial piers, more ($3.1 M /year) • Less water - related: BBC Apartments, BYB apartments, Beacon Bay residences, more ($3.3M /year) r 1_4 1 Harbor Costs, Harbor Revenues • Harbor costs include: • One -time capital projects (LNB, Rhine, more) • Ongoing expenses (Harbor Resources, etc) • Harbor revenues include: o Income properties: • Water - related . Moorings, marinas /commercial piers, more ($3.1 M /year) • Less water - related: BBC Apartments, BYB apartments, Beacon Bay residences, more ($3.3M /year) Harbor Costs, Revenues (est) ,One -Time Costs (annualized) $ 6,925,000 Harbor Resources Sal/Benefits $ 533.,248 Ongoing Costs $ 31840,000 Total Costs/Year $ 111298.,248 Water-Related $ 31096,705 Water-Adjacent $ 31356,177 Total Harbor Revenue/Year $ 6,4521882 Surplus (Deficit) $ (4,845,366) Attachment D Mooring Practices Today & Proposed ' i j Harbor Commission's Issue Current Practice "Transferability Ad Hoc Committee Document" Proposal Number of times a Unlimited • 1x /year. • One permit location person can transfer a • Person receiving can be transferred mooring permit mooring permit 2x/10 years (between cannot hold more now and December than 2 other mooring 31, 2020). permits. • Starting January 1, • Additional transfers 2021, transfers allowed at Harbor prohibited. Resources Manager's discretion. Family Transfers Allowed Allowed Allowed within Immediate Family. One- for -One Exchanges Allowed Allowed with Allowed with permission of Harbor permission of Harbor Resources Manager. Resources Manager. New boat owners on May maintain the May maintain the May remain on the an existing mooring mooring permit mooring permit mooring for up to 6 indefinitely. indefinitely. months. Transfer Fee Nominal fee (under City receives _ %of Between now and 2020, $50). the annual mooring City receives 50% of the permit charge. annual mooring permit charge. Ownership of Mooring Mooring permittees Same as current. If Retain private Tackle (can, chains) own and maintain surrendered, must ownership of tackle, but • Value is about $4K tackle. remove tackle within 30 City would purchase new. days or tackle becomes used tackle for —$2K if a • Annual maintenance City's tackle. person returned a = about $250- mooring to the wait list. $300 /year Then City would sell tackle to the next person at the mooring, also for —$2K. Sub - Permitting of Harbor Patrol may put a Defines & allows Long Same as Transferability Moorings visiting vessel Term (1 month to 12 Document, but referred temporarily on a can. months) and Short to as sub - permitting. Term (up to 30 days) rentals. City to charge a fee for doing so. ' i j Rental Rates Daily= $5. Proposed @ To be determined by To be determined by $15 -$25 /day. Council. Council. Wait List A wait list exists, but Creates "Mooring Same as Transferability rarely if ever moves. Interest List' like a wait Document. list. Can a person who Yes. Yes, 1x /year. No. Prohibited. received a mooring permit off the wait list transfer that mooring permit? Multiple Vessel Not expressly allowed, Authorizes this system Same as Transferability Mooring System but City had a pilot for the BYC and NHYC. Document. program with the NHYC which worked well. Liveaboards Permittee may live- May be temporarily Same as Transferability aboard his or her permitted on Short- Document. permitted mooring with Term Rentals, too. a Liveaboard Permit Yacht Clubs and LICA Clubs and LICA charge Same as current Same as current • Balboa Yacht Club holds various individuals a practice. practice. permits for -72 offshore monthly or yearly rate moorings. to access the moorings • Newport Harbor Yacht assigned to the Clubs Club holds permits for and LICA. Permits held ^70 offshore moorings. by LICA, BYC, and NHYC. • LICA has 46 onshore mooring permits ( ^792 LF). N Attachment E REDLINE OF NMA APRIL 27, 2009 DRAFT WITH CHANGES BY STAFF AND NOTES RE CHANGES ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 17.01.030 OF CHAPTER 17.01, SECTION 17.40.020 OF CHAPTER 17.40 AND SECTION 17.60.040 OF CHAPTER 17.60 OF TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO MOORING PERMITS The City Council of the City of Newport Beach finds that: The Management and Stewardship of Newport Harbor has been granted under Tidelands Trust Legislation by the State of California. Vessel moorings on the City Tidelands are intended to provide a lower -cost alternative to boat slips in Newport Harbor and to provide boating accessibility to a larger segment of the population. Historically, starting from the 1930'x, mooring transferability was limited under the Municipal Code to allow an individual mooring permit holder to convey the existing mooring hardware, and to transfer the mooring permit to another individual only in conjunction with the sale of the vessel assigned to the mooring. 2. When this system was developed, demand for moorings was minimal. initially, an individual could request permission to install privately owned mooring equipment and would be assigned a location and a mooring number. Over the next thirty years when the designated mooring areas were filled, an informal wait list was established. However, as the demand increased over several decades, a significant value was associated with possession of a mooring permit that was far in excess of the value of the mooring hardware. As the value of the permit increased, the ability to acquire a permit from the wait list decreased significantly. 3. When there is great demand for moorings, a value is associated with a mooring permit well in excess of the annual permit fees. This value may be inappropriate in Eight of the California Constitution's prohibition against the This amendment to the mooring permit and 17 provides for a revised and short -term p administration of moorings into compliance with Article XVI, Section 6. It also identifies ase -fees, rents and charges that will assist in funding Harbor maintenance and dredging projects and Harbor amenities. NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: I FA06-00 ?Jr0rd4Lic ofNMA Dmh vol, EifaV'rOhanoex imd L'onnnmrtv. in. l,V.lrr CAm 1IDRHl]: These dianges wore wade Try staff to NMA Graft. .J l:i SECTION 1: Section 17.01.030(A) (4) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: 17.01.030 Definition of Terms. A. Definitions: A. (Renumber subsequent subsections to maintain correct order.) SECTION 2: Section 17.01.030(J) (15) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: Definitions: M. 15. Multiple Vessel Mooring System. The term "Multiple Vessel Mooring System" shall mean a floating platform secured to a single point mooring only which allows multiple vessels to be secured that are shorter in overall length than the side of the platform to which the vessels are to be moored. (Renumber subsequent subsections to maintain correct order.) SECTION 3: Section 17.01.030(N O) (11) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: ON. Definitions: RS. 4. Rantats Sub - Permits. a. Sub - Permits - Long Term. The term "Long Term P, —Rta4 Sub - Permit' shall mean be defined as those mooring sub - permits issued by the Citv for the temporary use of a Deemed Vacant or a Noticed Vacant mooring for a period of between one (1) month to twelve (12) months that the City rRav rent a moorina which has been deerned-�� aei se4*asaa#. b. Sub- Permit - Short Term. The term "Short Term Reata4 Sub - Permit" shall {mean be defined as those moorino sub- vermits issued by the City A03-0 0136 /MOVnng Admirnsfrativrz Ordinance— Fins) Redline FOr 101iP3 Council hA(g J I Manager. Comment EDRn21: Mooringperm/tsnre not mitals. 7Tle City does not'rrnt' moorings. Moor gpennits are In -efltct licenses. (Renumber subsequent subsections to maintain correct order.) SECTION 4-. Section 17,40.020 of Chapter 17.40 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.40.020 Live- Aboards Prohibited. A. Live- aboards shall not be permitted at piers that are bayward of residentially zoned areas. No person shall live - aboard any vessel on an onshore mooring. (Ord. 2008 -2 § 1 (part), 2008) B. Live - aboards are prohibited on moorings subiect to long -term mooring rentals sub-permits as noted in Section 17.60.040(G). D. Live - aboards may be permitted on short term on moorings subiect to short term sub - permits reptala- according to Section 17.60.040(G). (Renumber subsequent subsections to maintain correct order.) SECTION 5: Section 17.60.040 of Chapter 17.60 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.60.040 Mooring Permits. A. Permit Required. No person shall place, erect, construct, er- maintain, use or tie to a moorings or buoys in the waters of Newport Harbor over City-owned or controlled tidelands without first having obtained a mooring permit from the Harbor Resources Manager or having otherwise complied with this section. A mocrino permit is in the nature of license for the temoorary use of a specific location within the Newport Harbor. Any work described and authorized in the permit must be completed within s xty (69 ) days after isruanne M the time designated in the permit. B. Issuance of Permit— Conditions. The Harbor Resources Manager, in furtherance of the tideland grants to the City, may issue" `tea e r4�t;e eF thin GhAI tnr ton r...h A ,.dl... ,..hl.. OF tern ..+ vessels - -in- Newport Harbor €ash Permit iesued by the Harbor rleseurees M..... RBF ,.h. l' allow the onr...lfi9e t.. FRRDF nl3 the As6mesed Ve nil \ wh:,,h I A08- M301Moodng Adrn1XFtm6cn Ord7nance —Final Redline for 101123 Councd M{g FnuBt be a vearel seesified on h Permit h t I awned h h D 'H a mogH permit or mooring sub - permit to allow the Mooring Ppermirtee or Moorma Sub- Permittee to temporarily use a portion of the waters of Newport Harbor for the mooring of a vessel. °a ^h R:q4 se issued h `ha "^ be f the vesse'' .ar htGh the m'1 issued and provide that the p H .. m'nn . ..F......... th feF w,.hkh t— has Been —i Q ................ MaRa..a. ...I which permit shall allow the n .mite . tam I the Vessel- owned by�R4- assigRed-te the perrRF 1. Exceptions: a. The Balboa Yacht Club and the Newport Harbor Yacht Club (collectively. "Yacht Clubs ") currently hold permits for single Dint moorings placed within certain mooring area boundaries established by the City, except as noted in Section 3 -f below. In addition, the Lido Isle Community Association ( "LICK) has permits for on -shore moorings on Lido Isle. Other organizations also have mooring permits in the harbor as well. These organizations shall hold their respective permits under the Yacht Club, or resoective organization name, for the moorings Identified by Harbor Resources as under their respective control at the time of enactment of this ordinance. 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. Mooring records shall be made available for audit by the Harbor Resources Manager during reguiar business hours noon request. Permitr lsn" e4-te— .a44 Clubs in Sngle POIRt lea ` Lhe- n--a- -pemlit - -is the .4'.h shali be-pe ,FRittedt^��thhe- .,,�.,ngG^^ ^r ",ro Ra9ra§ers Th vessel to wh'..h the ... n has been assigned. b. Mooring of a Tender. A 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 pwrmued- Assigned Vvessel or may be secured to the offshore mooring in the absence of the perm4tte4- Assigned VVessel. C. Multiple Vessel Mooring System Pilot Program. The Harbor A08- P0136/ Mooling AtlmmlSlralNn OrdlOWM - F, aJ Rndkne for 101123 Couxil Mfg comment [DRe3" These chances need to be relented. The Lmguage needs to ga haek t0 the old Language to pmseve the "hnensc nature cf the perotit. <� r Resources Manager may approve multiple vessel mooring systems in single peintthe mooring areas of Newport Harbor Yacht Club and the Balboa Yacht Club. this pile! pfegFam. A mulimplB vessel masOng system is be FF19GFed. An application for a multiple vessel mooring system shall be submitted in writing to the Harbor Resources Manager, who shall evaluate the application based upon standards he shall have established. Thig a. Identify on the permit the full legal namOF4, current address, current telephone number and current e-mail address if one exists. of the Mooring Permittee b. Agree to be responsible for permit fees. maintenance and repair of moorimq equipment; C. Grant permission to the City of Newport Beach to temporarily assign the mooring to another vessel when it is unoccupied through the issuance of a mooring sub - permit d. Agree to 9defend and indemnity the City of Newport Beach and any other government entity with wisdiction against any claims or losses arising out of or related to the use of the mooring permit except where the claim or loss arises out of the sole neoliaence and/or sole misconduct of f1 e 6 gr aadler -a person reRtina assigned the mooring as a moorina sub- permittee under subsections € G and /or H G below; e. Provide proof of liability insurance on vessel as determined by the City's Risk _Manager, and; f. Provide registration or other proof of controlling possessory nght in the Assigned Vessel, all to the satisfaction of the Harbor Resources Manager. 3. PermitteefTransferee Qualifications. A mooring permit shall be held by, or transferred to, only to -the following persons; I At18- Oil135r Mooertg Admirtistratiort Ordinance —Ernst Redline for 101123 Garnpl Mtg Comment [DRH4]: This Is a lapsed plof program lint the NMA draft revives. Chris mould hke re make qjo » ent at his dlscreffon. Comment [DRH5]:'Ihis is ronslvtutt with praettee but not the orduuance. The ordinance ao a "person" (17.61.030 M.3d, mid person' is defnied asany legally recognized entity I17- 01.030 MAJ. So we made them "Mori Jog a. A natural person holding title to an Assigned Vessel; distribution of the estate' an Aesiqned Vessel Ander A. yAll .. ordi.,..RGe shall E)FeVa'h Mow de We ...J.AFeer and the primary Mooring Permittee shall be the trustee of the trust: e d. An approved transferee whose vessel and/or mooring are subtect to any of the terms and conditions stated in 17.60.040( E); f e. A marine contractor or marine support service orovider holding title to an Assigned Vessel used to provide current or ongoing harbor infrastructure and marine or fishing services (such as maintenance and dredging) as authorized under the provisions of a Marine Activities Permit• locations, prior to the enactment of this amended ordinance. The boundaries of these designated mooring areas may not be expanded. The boundaries of these mooring areas are graphically depicted and defined in Exhibit "A" hereto and are hereby incorporated by reference. C. Plans and Specifications Required. No permit shall be issued for placing, erecting, constructing or maintaining a mooring or buoy unless such mooring or buoy is constructed: A08- 40136 /MOnnrg gdmrnislralfan 4rctinsnce— Finaf Redttire for 101723Ccanc Mtg Comment [DRHB]: This language Is not needed since It falls wdthtn 3.a_ alnave. Comment [ORH7]: we do not need to address Has Issue. The disteflmt n must he to a natural person consistent with the ar¢linance. Comment [UAH81 -This Is a prmh l Ifvm are not going to allow nansferablllty. So ` staffmcmtmlcvds against It. Comment [URH9]: We need itn Exhibit sltowhlg tine yacht club maurmg field". J 1. In accordance with standard plans and specifications approved by the Harbor Resources Manager and at a location approved by the Harbor Resources Manager; 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 Harbor Resources Manager. D, Unpaid Fees. When the permittee is in arrears for a period of one hund€ed twentyninety (904B9) days or more, the Harbor Resources Manager may, at his discretion, revoke the permit upon five days' written notice to the permittee by first class mail to the address shown on the permit. It the mooring is not removed E. Transfer of Permit. No permittee shall transfer a permit for a mooring or buoy granted under the provisions of this chapter, extent. without -the —prier mooring . bwey shall FemaiA with then .r.'Nnn h e the Fight ..F a •h. FeSf Gi4all "864 iR the (;d%y HAtil SUGh 4 Ase as the City sh.W1 �_RM 3 �'FMR fOF such mooring or thirty (30) days after divesting h'... elf of ownership of the vessel fn he w. pee t#eFe4e OF, upen failure tA rAreovq the FARE)FOO eF bUay, 44les shall vast P tile Vessel and does not intend to replace the Assigned Vessel with another vessel owned by Permittee. Permits shall not be transferred without the prior written approval of the Harbor Resources Manager. Prior to January 1, 2021 Tthe Harbor Resources Manaaer shall anorove the transfer of a moorino permit under the procedures set forth below 1. The Mooring Permittee (or, if the Permittee is deceased or incapacitated, the tTransfere° ^^ d be ;e ^) shall submit to the I A08- 00136 /Maudng Adminnslration Ordwancs —Final Redline for 101123 Council Mtg Comment [DRe.10]; Staff re]ected this change from the NMA rlrnrft in order to r clearly lhnit transfers. Comment [DRK111: Afla for up to two transfers prior to ,Lxnuary I, 2021. Harbor Resources Manager: a A completed mooring transfer form (on the form provided by the Harbor Resources Manager); and b. Documentation that the or000sed new Mooring Permittee Transferee ualifies as a Moorina Permittee under section 8 (3) above. mooring, a photograph of the Assigned Vessel if it is not subject to vessel registration laws; or pursuant to S sub- sections ±�-: B B49(�G) and & IGHt below. If the documentation is not received within an additional sixty (6M days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M below. 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 Harbor Resources Manager that the Assigned Vessel has been removed from the mooring and before a new vessel may be placed on the mooring shall submit to Harbor Resources Manager a copy of a Caltfomia Department of Motor Vehicles registration or other current registration (or in lieu thereof. U.S. Coast Guard documentation of ownership) documenting Ttransferee's ownership of the new Assigned Vessel. or in the case of a shore mooring, a photograph of the new Assi ned Vessel if it I A03- 00136IMming Administmiion Qrdir no — Anal nedlina for 101123 Counelf Mfg i Is not subject to vessel registration laws or M below. 4. The transfer request shall be denied unless Mooring Permit fees are paid current: required mooring inspections are current: required maintenance and repairs are complete and there are no derelict or unauthorized vessel(s) on the mooring. a. The Moorinq Permittee no longer owns the Assigned Vessel or has retained ownership of the Assigned Vessel and has permanently vacated the mooring' b. The specific mooring location has not been previously transferred more than one (1) time between the effective date of this ordinance and elanuar - December 31. 2020:: and !he date a! the b. C. C. The Pes:raittec and— he— transferee hasve met all the qualifications and conditions for issuance of a permit in &subsection B above. e. 7. The Harbor Resources Manager may approve a one for one exchange of moorings between two Mooring &Permittees subject AO8- 0013fi/Mwring Ad!ninryiratron prdrnanea— Final Redline 1w 101123 CWnefl Mtg Comment [ksa12]: Staff deleted subs cticns b. c & t, replaced with b Comment [kse11]: DRH: delete, rejllaoc with "The spedflc moQrtng locahon has no[ bsen transrerred mare than one {1) time botwmm dma.ary 1, 2015, and the date or the proposed transfer.' Comment [k5a14]: Staff deleted the Harbor Resources Mauagcrs discretion to .11 m Other transfers. to compliance with Sestiea -E abewe this subsection without any transfer fee imposed by the City. F. The following shall apply on or and after January 1, 202146. Mooring transfers shall he prohibited except: mooring ssig be aned to the nc -Defsea through on the Mooring Interest List mooring to any other person. With the exception of moorings issued to Moodnq Permittees described in Section 8 (3) (fe) City shall have the authority to rent -M assign vacant moorings to sub- oermittees pursuant to the following provisions: 1. Deemed Vacant Moorings. City may •ai;t —eaf assign Deemed Assianed 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 A08 -nU' 138 /MOOiing Administratipn pnlina,ryp —Final rtedi�ne ro�707723 Couxll Mlg Cnmment[DAH15]s This is every 4'�sdse definition of legal hews from the probate code. We mll pull the achial rode acchon to give it very clear dehninrn . Comment IDRHIeti Added to the NhIA Draft by t.5 Comment IDRHI717 Added by staff to NMA draft. b. A vessel, other than an Assioned Vessel, has been attached for thirty (30) days or more' or 2. Noticed Vacant Moorings: City may rent-out assign Noticed Vacant Moorings at its own discretion through the issuance of a moorin sub - permit for any period of time, feFeither long or short term gent", un to the reoccupation date on Mooring Permittee's Heider'-s written notice or the twenty-four 24 hour written notice Deemed Vacant Mooring. Written notice shall include the date the Mooring Permittee intends to vacate his/her mooring, and the date he/she intends to reoccuov the mooring with the Assigned Vessel. b. If Moorina Permittee provides notice, the Mooring Permittee may reclaim hWA"f the assigned mooring on the reoccupation date indicated in his /her written notice, or, if the Mooring Permittee Helder returns prior to or after the reoccupation date, upon twenty -four (24) hours written notice to the City. HG. Procedures for Moorina Sub - Permit Issuance - Renfat. Any natural person wishina to fens use a mooring pursuant to the issuance of a sub- oermit must enter into a written mooring ;sale( sub - permit agreement with the Harbor Resources Department that includes the following: 1. A written representation of the current gross vessel weight which shail be satisfactory to the Harbor Resources Manager. mooring sub- permittee to provide proof of liability and marine pollution insurance, registration or other proof of ownership, and an I A686© 136 /MOOrfng Adminf5fleliart OMln2nCe -Final flEdlinE (W IOtt23 Gw.rncd Mtg equipment damage deposit, all to the satisfaction of the Harbor Resources Manager, 3. The repair of any damage to the mooring equipment shall be paid by the mooring fencer sub- permittee. 4. Mooring sub- permittees Pefrtsfe shall provide approved mooring lines which shall be removed at the end of the rental period. accept an indefinite term at their own risk. 6. The fental- sub - permit fee will be based on a rate established by the Newport Beach City Council and delineated in the Master Fee Schedule Resolution. 7. Live - aboards are not permitted on moorings subject to a long term, e. Short term fentaf sub - permit renewals are not guaranteed and ff+ay are be subject to availability!. the interest List. 10. Mooring featala sub - permits that are available for less than a thirty (30) day period shall be offered to the public on a first -come first - serve basis. 11. A mooring may be loaned free of fe4# charge by the Mooring Peermittee to a vessel other than the Assianed Wessel for no more than thirty (30) consecutive days provided that: 1) The Mooring Permittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring; 2) The I A06-001361MOOdng Admimstmboo Ordinance —Finol Redline for 101123 Coumd Mlg jn previous twelve (12) months. I H. Mooring Interest List 2. Any person wishing to be added to the Interest List must do so era to the Harbor Resources Manaaer at any time, requesting to be removed from the Interest List. 3. Each even numbered calendar year, the City shall send one notice to all persons on the Interest List requesting confirmation of continued interest and /or updating of contact information. If there is no response to the thirty (301 day notice alona with payment of the administrative fee referenced in 1 (4) below, then the person shall be removed from the Interest List. City Council. Nonpayment of such fee shall cause the person to be removed from the Interest List. 5. Persons on the Interest List will be notified of revoked mooring Permit or mooring sub - permit or. surrendered or abandoned moorings and given the opportunity to receive a moorina permit or sub - nermit. 6. If no person on the Interest List accepts a mooring permit according A08-0013NMoonng Administrafivn OrdlnanGE —Fir�l Redline io�igri23 CottnC +l PAtg l to 17.60.040f]4 11 the Harbor Resources Department may auction the mooring and issue a permit for the mooring to the highest qualifVinq sealed bid. Charge shall not be required it: 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 arraagaa3ea tool: or 2. The transfer is made under Section 17.60.040.E.7 -8. K J. Surrendered Mooring Equipment. If the Mooring Permittee sells transfers or otherwise no longer owns the Assigned Vessel and does not intend to apoly for, or does not receive approval to transfer the Permit to another, 17-7-M Once a mooring Ppermit is surrendered, the Mooring V- permittee shall remove the Assianed Vessel and /or the mooring equipment thirty (30) da s after written notice of surrender of the Permit or, upon failure to remove the mooring eauipmenL title shall vest in the City and the City shall compensate Mooring Permittee the fair value for the mooring equipment, less fees owed, as provided m subsection M below. L_14.G Revocation or Surrender of Permit. 1. Grounds for Revocation. AFy—A Moorinn Ppermit or sub - permit qFaAted !GF FAQOFiHO , buoy ;H n .,,.,paFt Haab..- may be revoked upon any of the following grounds set forth in Section 17.70.020 or for any of the following: a. The moored vessel. or the mooring equipment has been determined to violate the applicable Moorino Regulations in Section 17.25.020. and the ewner -GfirenterMooirna Permitee Comment tkaei8l: j or S_ub pen-nittee has not made the necessary corrections or repairs within the time requir-Ing or buoy has fallen Rto a state a! AsFapaip: l APB- 00}3CJMavimg Admirtistra(iort Om7nance -FrnaV Redfrrte tat 10Y 123 COUnNI Mtg I, C. The mooring Ppermittee has failed or refused to allow an inspection of the vessel to determine if it is seaworthy and operable, —or a public nuisance or in compliance with applicable marine sanitation device requirements; d. Living aboard a vessel assigned to a mooring without a live - aboard permit unless otherwise noted in Section 1 T60.040fG1. 2. Notice and Hearing. In the event the Harbor Resources Manager determines there are grounds to revoke a permit issued pursuant to this chapter, the Harbor Resources Manager shall proceed in the manner described by Section 17.70.020. 3. Upon revocation, it shall be the duty of the Moodnq Permitee to immediately remove the mooring equipment and any moored vessel. If not removed within thirty (30) days of revocation of the Permit, sdeN the mooring equipment shall vest in the City and may be auctioned by the City to another person oraad vessei may be removed by the Harbor Resources Manager and the cost of mooring equipment A spl removal shall be paid by the removal of mooring eguioment 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 er equipment. 4. During any revocation proceeding under this Section L of thesueh mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager.-(9r€1- 2998 2 A 1 (lag) 2908) M. Moorings Revering 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 E. above, or for any other reason, the following shall apply: 1. The Mooring Permittee shall be entitled to recover all of Mooring I Ag8-001MMwring Admirrishalma Ordinance —anal Redflnetor101129Cwnnl Mrg 1i Permittee's mooring equipment within thirty 30 days of reversion. City's Master Fee Resolution. 3. The moorine shall_ be assigned to an individual form the Interest list pursuant to subsection I above. 4. No mooring that reverts to the City for assignment off of the Interest List, or by any other appropriate procedure shall have any right to a later assignment by a Mooring Permittee whatsoever. SECTION 5: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 7: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2010GP, and adopted on the _ day of , 201008, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS I A08- 001WMcnring Adm,hrntOn OMlnace —Final Redline for 101123 Council Mlg l MAYOR Aooroved as to Form: OFFICE OF THE CITY ATTORNEY By David R. Hunt, City Attorney ATTEST: CITY CLERK A08-00138rMcorinq Adminorration Ordinance - Final Redline for 101123 Qoundl Mig Attachment F CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY DATE: November 16, 2010 TO: Honorable Mayor and City Council FROM: Office of the City to ey David R. Hun orney MATTER: Mooring Administration Ordinance A08 -00136 SUBJECT: Proposed Mooring Administration Ordinance �....: too 1 FO Ft� ¢ We attach a redline markup of the Newport Mooring Association ( "NMA ") draft ordinance regarding mooring administration (aka "Transferability Document "). While the redline version is very confusing, it shows what changes NMA made to the existing ordinance, what changes staff recommends, and ties comments directly into the document.' The provisions of the final recommended draft are the recommendation of the Council's Committee on harbor fees. It is the product of several meetings and many discussions. It represents a middle ground on the issue of transferability. In effect, the NMA proposal recommends the formal allowance of transfers of mooring permits under limited situations and the interim assignment of mooring permits by the City when a Mooring Permittee is not using his or her mooring. It also allows for the City to obtain fees both to cover the cost for administering the program and fees from the short term assignment of moorings when the Mooring Permittees are not using them.2 The Committee took a middle ground, essentially allowing transfers within the basic terms recommended by NMA for a limited time, ten years, and a limited number, 2. It also recommends a provision for buying mooring tackle from Mooring Permittees who move their vessels off moorings. It is the Committee's belief that eventual end of transferability will increase access to the harbor and that is its goal. I will attempt to bullet the significant substantive changes in the ordinance, both by NMA and by staff at the request of the Committee: ' The "red" of the "redline' for the most part are from the Mooring Subcommittee (NMA), except as noted as staff changes. The purple is by the OCA attempting to bring the document fully into conformance with the Committee's recommendation. 2 It does several other things as well, including dealing with the yacht club mooring fields, moorings for harbor service providers, and addressing wait list issues 73 Mooring Administration Ordinance November 16, 2010 Page: 2 • Multiple Vessel Mooring System: This system was a pilot program that expired on its own terms on June 30, 2008. The provisions offered by NMA revive it. • "Sub- Permits ": This is my phrase to achieve the goal recommended by NMA and, for a limited time, recommended by the Committee. NMA recommends allowing the assignment of vacant moorings to other interested individuals in order to maximize the use of the moorings and bring revenue into the Tidelands Fund. I have simply change the wording so that it accurately reflects the legal reality that the City does not "lease" or "rent' moorings, but instead permits their use. • Live- Aboards: Though it may a first be confusing, the NMA recommendation does not change the live- aboard provisions. When permitted, owners may live - aboard their vessels so long as they are the actual permittee of the mooring. It does not allow long term sub - permittees, those with more than a month sub - permit, to live- aboard, but it does allow short term sub - permittees, those with less than a month sub - permit, to live- aboard in order to serve vessels in transit. • Transfers: The Committee is recommending that two transfers be allowed up until January 1, 2021 (i.e. for ten years) and then cut off, except to immediate family. The Committee accepts and recommends the payment of a transfer fee to the City. • Mooring Interest List: The "Interest List' will be maintained as a true and functional wait list. Once a mooring reverts to the City for assigning out through the Interest List or the ten year grace period runs, there shall be no further transfers of that mooring allowed except to immediate family. Purchasers of moored vessels will be allowed six months to find alternative accommodations for their vessels and then the mooring will be assigned out through the Interest List. • Mooring Equipment (aka "tackle "): The Committee wanted to fairly compensate Mooring Permittees who give up Mooring Permits for the value of the mooring equipment. The Mooring Permittee may either take the equipment, or the City will compensate the Mooring Permittee for it. The City will then sell the equipment to the next Mooring Permit owner for the price paid by the City. These are the general substantive points of significance. We will be available to address any questions of the Council or the public at the hearing. In the interim, please also feel free to call if you have any questions, thoughts, or concerns. Mai Attachments: • Redline of NMA Draft Ordinance with Staff Changes and Comments cc: Dave Kiff, City Manager (w/ attachments) Chris Miller, Harbor Resources Manager (w/ attachments) [A08- 00136]1M &CC from DRH re Mooring Administration Ordinance 0 % Ll REDL]N>✓ OF NMA APRIL 27, 2009 DRtLFT WITH CHANGES BY STAFF AND NOTES RE CHANGES ORDINANCE NO. 2010- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 17.01,030 OF CHAPTER 17.01, SECTION 17.40.020 OF CHAPTER 17.40 AND SECTION 17.60.040 OF CHAPTER 17.60 OF TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO MOORING PERMITS The CityCouncul otthe Cityof Newport Beach finds that: The Management and Stewardship of Newport Harbor has been granted under Tidelands Trust Legislation by the State of California. Vessel moorings on the City Tidelands are intended to provide a lower -cost alternative to boat slips in Newport Harbor and to provide boating accessibility to a larger segment of the population. Historically, starting from the 1930's, mooring transferability was limited under the Municipal Code to allow an individual mooring permit holder to convey the existing mooring hardware, and to transfer the mooring permit to another individual only in conjunction with the sale of the vessel assigned to the mooring. 2. When this system was developed, demand for moorings was minimal. Initially, an individual could request permission to install privately owned mooring equipment and would be assigned a location and a mooring number. Over the next thirty years when the designated mooring areas were filled, an informal wait list was established. However, as the demand increased over several decades, a significant value was associated with possession of a mooring permit that was far in excess of the value of the mooring hardware. As the value of the permit increased, the ability to acquire a permit from the wait list decreased significantly. 3. When there is great demand for moorings, a value is associated with a mooring permit well in excess of the annual permit fees. This value may be inappropriate in light of the California Constitution's prohibition against the gifting of public funds or assets as set forth in Article XVI, Section 6 of the state Constitution. This amendment to the mooing permit and transferability provisions of Title 17 provides for a revised and short-term process that is f ' begin administration of moorings into compliance with An, also identifies esa-fees, rents and charges that will assist in funding Harbor maintenance and dredging projects and Fl:,_ NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: I iFlf fNR:Vi18, IlvienrIVALA pmR u1IIh SurfrCemip•. ard[, vwz.l0id IQ lCA11111IG [GRHl]: Three chengce were• made lry sFaff to NMA OrdR. � J SECTION 1: Section 17.01.030(A) (4) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows; 17.01.030 Definition of Terms. A. Definitions: A. (Renumber subsequent subsections to maintain correct order.) SECTION 2: Section 17.01.030(J) (15) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: J. Definitions: M. are shorter in overall length than the side of the Platform to which the vessels are to be moored. (Renumber subsequent subsections to maintain correct order.) SECTION 3. Section 17.01.030(N O) (1j) of Chapter 17.01 of the Newport Beach Municipal Code is hereby added to read as follows: [ ON. Definitions: AS 4. Rentals Sub- Permits. b. Sub- Permit - Short Term. The term "Short Term Rental Sub- Permif' shall meaty be defined as those mooring sub - permits issued by the Citv I A05-00136 /Mwdng Adminisrrafion Oranan — Final Redline for 101123 Cmrr#Mlg 7; for a temporay use of a Deemed Vacant or Noticed Vacant mooring for any period of time less than thirty (30) days as determined by the Harbor Resources Manager. (Renumber subsequent subsections to maintain correct order.) SECTION 4: Section 17.40.020 of Chapter 17.40 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.40.020 Live - Aboards Prohibited. A. Live - aboards shall not be permitted at piers that are bayward of residentially zoned areas. No person shall live- aboard any vessel on an onshore mooring. (Ord. 2008 -2 § 1 (part), 2008) B. Live - aboards are prohibited on moorings subject to Iona -term mooring rentals sub - permits as noted in Section 17.60.040(0). D. Live - aboards may be permitted on short term on moorings subject to short term sub - permits tentats- according to Section 17.60.0400. (Renumber subsequent subsections to maintain correct order.) SECTIONS: Section 17.60.040 of Chapter 17.60 of Newport Beach Municipal Code is hereby amended in its entirety to read as follows: 17.60.040 Mooring Permits. A. Permit Required. No person shall place, erect, construct, er--maintain use or tie to a moorings or bueye in the waters of Newport Harbor over City -owned or controlled tidelands without first having obtained a mooring permit from the Harbor Resources Manager or having otherwise complied with this section. A location within the Newport Harbor. Any work described and authorized in the permit must be completed within sixty (60)- days -af! r - issuance ef- the time designated in the permit. B. Issuance of Permit— Conditions. The Harbor Resources Manager, in furtherance of the tideland grants to the City, may issue 99±02�s-PUMLIaRt !a the I A69-X 13W Mwnng Administration Ordinance - Final Fedilne for 101123 Council Mtg Comment tD2]: MIooring permits are not. rentals. Phlier, Cfly ties not'renC n ocrings. Mooring permits are in e$ect llceoses. a mooring permit or mooring sub - permit to allow the Mooring Peermittee or Mooring Sub - Permittee to temporarily use a portion of the waters of Newport Harbor for the mooring of a vessel. Each parmt so ea h„ fhe Harbor Rare. . n Manager shall hn isgupd to ♦ha PeFFRittee, npe6ify- the- vesse!- for -whlGh the PeFFA t ' issued and .. :.Aa 44...4 ho ..e...i ttee may change ♦he Vessel fe whist-4 pen wf+Ften— ++ikon., le the —WaFI9 Reso s MaFiage. and , h'eh a m1 Shall allow then rv.'Hne le m GRly the �v- n�c�orvrny v���. vessel wnedby hi wand- a6sigped to the peraait -to- sash msering or buoy. 1. Exceptions: a. The Balboa Yacht Club and the Newport Harbor Yacht Club tcollectively "Yacht Clubs ") currently hold permits for single point moorings placed within certain mooring area boundaries established by the City, except as noted in Section 3 -f below. In addition the Lido Isle Community Association ( "LICA ") has permits for on -shore moorings on Lido Isle. Other organizations also have mooring permits in the harbor as well. These organizations shall hold their respective permits under the Yacht Club or respective organization name, for the moorings identified by Harbor Resources as under their respective control at the time of enactment of this ordinance. 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 Mooring records shall be made available for audit by the Harbor Resources Manager during regular business hours upon request. °aa- ..^^'.ts— Issues e-44e.14 Clubs I£Rg'6 on rig_n Mal Rg AFea6 Wh6a w.Y iG I h `hall be n;tted to V the __ 4., e ..1 46 .. .4 -.6.6 The nl,�h nh..l keep a record of the peF69R and vesgpl tP h' 4. the has 6eeR ass gRed. b. Mooring of a Tender. A 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 permitted - Assigned Wessel or may be secured to the offshore mooring in the absence of the permitted Assigned Wessel. C. Multiple Vessel Mooring System Filet- Program. The Harbor I A03- 0073&Mwa gAdmini5fr06n ordinance- Nruil nedlme for 101123 Council Mlg COMMOM toRe7]:lhese changes need to he miceed. The language needs to go back to the old language to preserve the'llcense nature of the permit. Resources Manager may approve multiple vessel mooring systems in single -pelRH a mooring areas of Newport Harbor Yacht Club and the Balboa Yacht Club.r:., :ny I; ;;,rrtdea et deflRea as a floating plan.. Rga— .'e—a— Giggle —PGMt be moored. An application for a multiple vessel mooring system shall be submitted in writing to the Harbor Resources Manager, who shall evaluate the application based upon standards he shall have established. This F;,hgentan shall _ .... NOWNINI a. Identify on the permit the full legal name(s4, current address, current telephone number and current e-mail address if one exists, of the Mooring Parmittee: 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 out of the sole negligence and /or sole misconduct of tits �ity and /era person renting assigned the mooring as a mooring sub- permittee under subsections € G and/or H C below; right in the Assigned Vessel all to the satisfaction of the Harbor Resources Manager. 3. Perm'ittee/Transferee Qualifications. A mooring permit shall be held bv, or transferred to, only to -the following persons: I A03-00136 /Mooring AdminWrarron Ordinance—Final Redline for 101123 Councr7 Mtg CGMMeat [DRX4]: This Is a lapsed p©ot program that hie. NMA draft revived. Chris .:gold tlke to m ke. It permanent at his dtscreatia- COMMent [DRNS]:'Rhd Is cen9fateat With practice hat not me ordmanm. The ordinance defines'peamdttee.' as a "person' (17.01.030 M.3d, sad 'persori Isdeflned as any legally recognized entity f 17.01.030 MA I. So we made them "Mooring panrlttees' to dlshngulsh them. a. A natural person holding title to an Assigned Vessel; C. An inter vivos trust. family trust, or other similar type of trust estate holding title to an Assigned Vessel so Iona as all trustors are natural persons 4+f hers- are aav sea#Nsts _..._ O aFt'n..l...l.. FBQaFd t8 aRv asset w _.J a arrprevts ews -e# -th +s dlor� shall Freya"! (He .+ address Rrp il-IPFAAR f... ^Ih, name•! and the primary Mooring Permittee shall be the trustee of the trust; e d. An approved transferee whose vessel and /or mooring are subject to any of the terms and conditions stated in 17.60.040(E): # e. A marine contractor or marine support service provider holding title to an Assigned Vessel used to provide current or ongoing harbor infrastructure and marine or fishing services (such as maintenance and dredging) as authorized under the provisions of a Marine Activities Permit: be expanded The boundaries of these mooring areas are graphically depicted and defined in Exhibit °A' hereto and are hereby incorporated by reference. C. Plans and Specifications Required. No permit shall be issued for placing, erecting, constructing or maintaining a mooring or buoy unless such mooring or buoy is constructed: I A0.9- DO136/MOOring Administration Drclinance —Final RSdffne fw l0f 123 COUrtcilMq Comment [DRH6]: This language Is not needed since It falls within 3.a, above. Comment IDRH7]: We do not need to address this issue. The dts"bution must be to a natural person consistent with the ordinance. Comment [DRHe]: Mils w a problem if we are not going to Nlow fr:eisfesahLLty. So staff recoonn Lids against It. Comment IDRH9]: We need an exhibit 'buw ng the yacht club mooring fields. In accordance with standard plans and specifications approved by the Harbor Resources Manager and at a location approved by the Harbor Resources Manager; 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 Harbor Resources Manager. D. Unpaid Fees. When the permittee is in arrears for a period of ore- huadFed tweniyninety (964 -213) days or more, the Harbor Resources Manager may, at his discretion, revoke the permit upon five days' written notice to the permittee by first class mail to the address shown on the permit. If the mooring is not removed by the per cancellation of the Permit, then it UEN E. Transfer of Permit. No permittee shall transfer a permit for a mooring or buoy granted under the provisions of this chapter. except, witheW the priaF ..ht to a the mODFIng r h... after having d vested himself of the awReF64P Pof mee „q G h... Shall _ .� w th the permittee, but the Fight of a theFeef shall thiFt (39) days after de'• •stmt imselfr�f OWReFsh p offthe vessel to be .Brad thereto OF, UPOR to the MAOFiRg h t'!le Shall rt in the Vessel and does not intend to replace the Assigned Vessel with another vessel owned by Permittee. Permits shall not be transferred without the prior written annrnval of the Harbor ReSOUrces Manager. Prior to January 1. 2021. Tthe 1. The Moorina Permittee (or, if the Permittee is deceased or incapacitated the tTransferee as '-a � fh9d De1Gw) shall submit to the A05- 00 1 3 5 /Moomg Adminisbafion Ordinance - F7oal Aedkaa far 101123 Council Mfg Comment [DRHIGJ: Staff re]ected this change from the. NMA draft In order to clearly Unfit transfers. Comment [DRHYl]: ALMS for Up to two transfers prior to January 1. 2021. I Harbor Resources Manager; a. A completed mooring transfer form (on the form provided by the Harbor Resources Manager); and b. Documentation that the proposed new Mooring Permittee (Transferee) qualifies as a Mooring Permittee under section B (3) above. 2. If Ttransferee intends to purchase an Assigned Vessel but does not have title on the Assigned Vessel owned by the Mooring Permittee and Ttransferor at the time of transfer, then: a. Within sixty 601 days of a transfer. Ttransferee shall submit to Harbor Resources Manager a copy of a California Department of Motor Vehicles registration or other current registration (or in feu thereof, U.S. Coast Guard documentation of ownership) documenting Ttransferee's ownership of the Assigned Vessel, er in the case of a shore mooring, a photograph of the Assigned Vessel if it is not subiect to vessel registration laws- or b. If such documentation is not received by the Harbor Resources Manager within the sixty 160) day period, then the mooring may be deemed vacant and may be rented pursuant to S sub - sections 444 .G) and & (QHa below. If the documentation is not received within an additional sixty 60 days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M below. 3. It 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: submit to Harbor Resources Manager 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 Ttransierce's ownership of the new Assigned Vessel, or in the case of a shore mooring a photoaraph of the new Assigned Vessel if it I ACS-0013& MOOM9 Atlm6713IMIOn ordinance -Final nedim for 101123 C fw f Mfg is not subject to vessel registration laws; or b. If the documentation is not received within 60 days of a transfer, the mooring may be deemed vacant and may be fepAed assigned pursuant to subsection G and H below. If the documentation is not received within an additional sixty (60) days, the mooring shall revert back to the City for assignment through the Interest List as set out in subsection M below. 4. The transfer request shall be denied unless Mooring Permit fees are paid current required mooring inspections are current required maintenance and repairs are complete and there are no derelict or unauthorized vessel(s) on the mooring. 5. The Mooring Permittee and T-transferee shall provide a written Mooring ePermittee's riaht to transfer the permit. b. The specific mooring location has not been oreviously transferred more than one (1) ftme between the effective date of this ordinance and danaar December 31, 20201, - and the date Gf the IDFGBG6ed tFaRsfer." C. e. 7. The Harbor Resources Manager may approve a one for one exchange of moorings between two Mooring aPermittees. subject I A08- 00136 /MOOrirg AdminlsYratian OrdlnarlLC - Final Ae IM8, kr 101123 Council Mfg Comment [ksa12]: Staff deleted subsections b. c & c. replaced with b Comment [ksa13]: ORH: flOvIc, rcplare "th -lbe specd3c mooring location has not been transferred more than one (1) time helween Jammry 1. 201&, and the date of the prepoeetl transfer." Comment [ksa14]: Staff deleted the Huber Rcsourrxs M;utager's dlscretton In allow other tnnmaiers. 4- to compliance with SeGtiea– E -abeve this subsection without any transfer fee imposed by the City. P. The following shall apply on er and after January 1, 202146. Mooring transfers shall be prohibited, except: a. When transferred from a natural person to another member of his or her immediate family along with the Assigned Vessel which shall be defined for the purposes of this section as the heirs at law to the second degree of consanguinity: or b. When a natural person has taken title to an Assigned - Vessel shall direct that the vessel be moved off the moorina and that the moorna be assigned *^ '"° n., verscl ^° ° ^^ through on the Mooring Interest List. GF Citv's Authoritv to Ran! au Assign Moorinas through Use of Sub - Permits With the exception of the Baiboa Yacht Club the Newport Harbor Yacht Club, and the Lido Isle Community Association's designated moorings. Moorina Permittee may not rent, assign, or transfer the use of the mooring to any other person. With the exception of moorinas issued to Mooring Permittees described in Section B (3) (fe). City shall have the authority to r€aE -el4 assign vacant moorings to sub - permittees pursuant to the following provisions: 1. Deemed Vacant Moorings. City may rent –Gut assian Deemed Vacant Moorings as through the issuance of Iona term rentafe sub - permits at its own discretion for any period of time up to one (1) Assigned Vessel to the mooring. A "Deemed Vacant Moorina" shall be defined as a mooring upon which: a. An Assigned Vessel has not been attached for thirty (30) consecutive days or more: or I AOR -WON Mowing AdMvIslrat on Ordinance - Fnef Redline for 101123 Cove ? MW CDMMnt[DRHSS]: ThlsfaaverypMc- definition of legal heirs from the probate code. We vrlll pull the actual code section to give It very clear definition. ( Comment [DRH16]: Added to the NMA 1 l Draft by staff. J CComment [DRH171: Added by s all to NMA drat. %i b. A vessel, other than an Assigned Vessel, 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 Section E above. 2. Noticed Vacant Moorings: City may emsHt assign Noticed Vacant Moorings_ at its own discretion_ through the issuance of a mooring per subsection (b) below. If the moorina continues to be vacant for thirlV (30) days past the reoccupation date indicated on Mooring Permittee's ldelde4 notice, and there is no further written notice from Meorina Permittee Helder. the moorina shall become a Deemed Vacant Moorin a. Mooring Permittee may provide written notice to City 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 moorina, and the date he/she intends to reoccupy the mooring with the Assigned Vessel. b. If Moorina Permittee provides notice. the Moorina Permittee may reclaim Wa*wr the assigned mooring on the reoccupation date indicated in his /her written notice, or, if the Mooring Permittee balder returns prior to or after the reoccupation date. upon twenty -four (24) hours written notice to the City. H6. Procedures for Moorina Sub - Permit Issuance 44enta4. Any natural person 1. A written representation of the current gross vessel we_ ight which shall be satisfactory to the Harbor Resources Manager. I A06- 0013& Mooring ACminiatfatian Ordinance- F1nal Aedllne for 101123 Council Mfg eauipment damage deposit, all to the satisfaction of the Harbor Resources Manager. 3. The repair of any damage to the moodng equipment shall be paid by the moorinq F&PAer sub - permittee. 4. Mooring sub- permittees Reetera shall provide approved mooring lines which shall be removed at the end of the rental period. 5. A mooring FepAa4 sub-permit agreement is renewable based on availability. Upon return of the Assigned Vessel to the mooring, the accept an indefinite term at their own risk. ti. The rental- sub - permit fee will be based on a rate established the Newport Beach City Councit and delineated in the Master Fee Schedule Resolution. 7. Live - aboards are not permitted on moorings subject to a Iona term B. Short term ;eR4ai sub- permit renewals are not guaranteed and rnav are be subject to availability. 10. Mooring rentafs sub-permits that are available for less than a thi f361 day period shall be offered to the public on a first-come, basis. Permittee provides the Harbor Resources Manager with written notice identifying the vessel that will use the mooring' 2) The A00- 0013E 1Maanng AdminlsnvfAi n 04naap -Final Aedline for 101123 Coined Mtg Mooring Permittee has not so-loaned the mooring for more than sixty (60) days in the twelve (12) month period °'a�gda -year -that immediately precedes the commencement of the current mooring I W. Mooring Interest List 1. The Mooring interest List ( "Interest List') is the list or lists of natural persons as of the date of the adoption of this ordinance, who wish to obtain a mooring permit as oermits revert baek -to the City or who wish to rent be assigned a mooring on a Iona term basis from the City through the issuance of a mooring permit or mooring sub - permit. On and after the effective date of this 6rdinance the Interest List(s) shall be maintained for natural persons interested in securing a mooring permit- or- reRtinN being tempprarily assigned the use of a Deemed Vacant: or a Noticed Vacant Mooring. 2. Anv person wishing to be added to the Interest List must do so err by completing a written application wit# and paving a fee to be established by resolution of the City Council. Any person may be removed from the Interest List by producing a written signed notice to the Harbor Resources Manager at any time, requesting to be removed from the Interest List. 3. Each even numbered calendar year, the City shall send one notice to all persons on the Interest List requesting confirmation of continued interest and/or updating of contact information. If there is no response to the thirty (30) day notice along with payment of the administrative fee referenced in 1 (4) below, then the person shall be removed from the Interest List. 4. Each person on the Interest List is responsible to keep the City informed of any changes to his or her mailing address or other removed from the Interest List. 5. Persons on the Interest List will be notified of revoked mooring permit or mooring sub- permit or, surrendered or abandoned moorings and given the opportunity to receive a mooring permit or sub - permit. 6. If no person on the Interest List accepts a mooring permit according I A08- 00136 /W06V AdM niSfMfion OfdtMnC -final HedPne for 101122 CoUndf Mfg to 17.60.040(9 1) the Harbor Resources Department may auction the moorina and issue a permit for the mooring to the highest qualifying sealed bid. 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 arrangement tool: or 2. The transfer is made under Section 17.60.040.E.7 -8. K 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. ... Once a moorinq Rpermit is surrendered, the Moorinq Rpermittee 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 Mooring Permittee the fair value for the mooring eouipment, less fees owed, as provided in subsection M below. L_X.G Revocation or Surrender of Permit. Grounds for Revocation. Any—A Mooring Ppermit or sub- permit may be revoked upon any of the following grounds set forth in Section 17.70.020 or for any of the following: a. The moored vessel, or the mooring equipment has been determined to violate the applicable Mooring Regulations in Section 17.25.020 and the ownef o^ •^^'prMocirna Permitee I comas enc tk�lat: or Sub - oermittee has not made the necessary corrections or repairs within the time required;' ^g eF b,,..., has 1`" ^n into ^ state ef disrepa F; Ao9-0Oi3W Maonng Adminisntbn Ordinancaa - Finaf Redline for 101123 Cgu=? Mtg U c. The mooring Epermittee has failed or refused to allow an inspection of the vessel to determine if it is seaworthy and operable,--of a public nuisance or in compliance with applicable marine sanitation device requirements; d. Living aboard a vessel assigned to a mooring without a live - aboard permit unless otherwise noted in Section 17.60.040(G). 2. Notice and Hearing. In the event the Harbor Resources Manager determines there are grounds to revoke a permit issued pursuant to this chapter, the Harbor Resources Manager shall proceed in the manner described by Section 17.70.020. 3. Upon revocation, it shall be the duty of the owfieF of the FnOOF RD Mooring Permitee to immediately remove the mooring equipment and any moored vessel. If not removed within thirty (30) days of vessei may he removed by the Harbor Resources Manager and the cost of mooring equipment and vessel removal shall be paid by the mMooring pPermittee. Any moored vessel or equipment not removed within thirty (301 days may be impounded by the City and disposed of in the manner provided by law. City incurred costs of rem-,,, 11 ,f r _quipment or 2 ,sal moored thereto may '.,e Permitte .same may —be collected in any court of competent jurisdiction or recovered by the City from the proceeds of sale of the vessel or mooring of cauioment. 4. During any revocation oroceeding under this Section L of thesueh mooring is unoccupied, it may be temporarily assigned as a mooring for guest vessels by the Harbor Resources Manager. -(9r� 1. The Mooring Permittee shall be entitled to recover all of Mooring I AQ6.001361MOOdng AdMPmGtratron Ordinance- Fynal Redline for 101123 Counif Mfg l} Permittee's mooring eauioment within thirty (301 days of reversion. be determined by the Harbor Resources Manager and as set in the CC's Master Fee Resolution. 3. The mooring shall be assigned to an individual form the Interest list pursuant to subsection I above. 4. No mooring that reverts to the City for assignment off of the Interest List or by any other appropriate procedure, shall have any right to a later assignment by a Mooring Permittee whatsoever. SECTIONS: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 7: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the i day of 201098, and adopted on the _ day of , 201098, by the following vote, to wit; AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS I A08-0 0136 /Mooring Administration Orinence— Final REdline for 101123 Council Mfg `Y � MAYOR Approved as to Form: OFFICE OF THE CITY ATTORNEY By David R. Hunt, City Attorney ATTEST: CITY CLERK A09- 0073fi/Moonng AdmmisiraPron Gf&mnc - rinel Aedix for 7011230 nOMrg I�