HomeMy WebLinkAboutC-3310 - Tidelands Appraisal•
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TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Deputy City Manager t
SUBJECT: Request for Proposals (RFP) - Tidelands Appraisal
APPROVED
ACTION:
Direct staff to issue Request for Proposals as presented.
BRIEF At its 1999 Goal Setting session in January and at a Study Session on March 8,
SUMMARY: 1999, City staff presented the Council with information about the administration
of the City's tidelands (submerged and tidal lands in and around Newport Bay
and the Pacific Ocean). At the conclusion of the second meeting, the City
Council directed staff to return to the Council with a Request for Proposals (RFP)
that would ask respondents to bid on an appraisal of City -owned and managed
tidelands -such an appraisal would assign a market rental rate to various use
classifications in Newport Harbor. These uses will likely include public and
private marinas, piers, moorings, boat service operations, and more.
This item contains the RFP and asks for the Council's approval of the RFP's
scope of work, selection process, and proposal format.
BACKGROUND: "Tidelands" refers to land owned by the State of California but administered by
the City pursuant to various legislative grants. About 1,168 acres of the City's
10,700 acres are tidelands (roughly 10 %). Tidelands are those lands that, on the
date of California's admission to the United States, were below the line of mean
high tide, subject to changes due to natural processes.
Tidelands are subject to a public trust for navigation, commerce and fishing.
Beginning in 1919, the State granted certain tidelands to the City (tideland
grants). The tideland grants covered only tidelands within our corporate limits
so City tidelands are, with few exceptions, limited to Lower Newport Bay. The
tideland boundaries in Lower Newport Bay were, for the most part, established
by judgments issued in a number of Superior Court lawsuits filed in the late
1920s and early 1930s.
Tidelands may be used for any purposes consistent with the trust. In some cases,
such as portions of Beacon Bay and the Balboa Bay Club property, the
Legislature has removed trust restrictions subject to certain conditions including
a requirement that revenue generated by the property be used for tideland
Newport Beach City Council
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Page 2
BACKGROUND: purposes. Some of the permitted uses are described in the most comprehensive •
(cont'd) legislative grant commonly known as "the Beacon Bay Bill."
At the City Council's March 8,1999 meeting, the Council heard an hourlong staff
presentation on several issues relating to the City's administration of tidelands.
These issues included:
O Administration -is the City's use of the tidelands grant consistent with the
'general statewide interest" of the trust?
® Equity -has the City set up a payment system that is equitable for specific
classes of tidelands users, like mooring permittees, those entities on full tidelands
leases, and commercial and residential harbor permittees?
® Monitoring -does the City appropriately monitor its tidelands permits and
leases to ensure that permittees and lessees are complying with the permit and
lease requirements?
® Current Cost Recapture -is the City appropriately recapturing its costs relating
to current tidelands activities?
® Future Cost Recapture -what future costs should the City recapture through
permits and leases?
The Council directed staff to begin work on Issue 2 -Equity -by preparing an
RFP for a tidelands appraisal that would classify and assign a market rental rate
to the various tidelands uses. These uses include:
• Public and private marinas that lease slip spaces to tenants.
• Marinas that rent space to commercial harbor operations.
• Piers that abut residences.
• Commercial boat service operations, including gas docks, boat repair
facilities, and boat retail operations.
• Boat moorings, including shore moorings and offshore moorings.
In preparing the RFP, we have asked qualified respondents to assist the City not
just in assigning a monetary value to the harbor's uses, but in developing a
classification system for each use. Using the classification system, the City will
be able to administer each of the six, seven, or eight anticipated classes in a
uniform manner.
The attached RFP (Attachment A) includes the scope of work anticipated by the
successful respondent, the selection criteria that the City will use to judge the
respondents, and the format in which City staff requires respondents to submit
their proposals. As the Council will note from the RFP, staff will present a final
recommended respondent to the Council for the Council's formal approval.
This agenda item asks the City Council's approval to issue the attached RFP.
ATTACHMENT: Exhibit A - Proposed Request for Proposals (RFP)
•
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Exhibit A - Proposed RFP
• Page 3
• • t
CITY OF NEWPORT BEACH
CITY MANAGER'S OFFICE
Dave Kiff, Deputy City Manager
949/644 -3002
Request for Proposals
CLASSIFICATION AND APPRAISAL OF
HARBOR USES
SYNOPSLSOFRFP. The City of Newport Beach seeks to improve the management of its harbor
properties. It therefore invites proposals for consultant services to perform a
classification and appraisal of specific City-owned or managed tidelands assets
within and surrounding Newport Harbor. This activity will lead to the
development of a rate structure and property management plan for these assets. A
map of these properties is included as Attachment A. These asset classes include,
but are not limited to:
• Public and private marinas that lease slip spaces to tenants.
• Marinas that rent space to commercial harbor operations.
• Piers that abut residences.
• Commercial boat service operations, including gas docks, boat repair
facilities, and boat retail operations.
• Boat moorings, including shore moorings and offshore moorings.
The selected consultant shall have a particular expertise in the valuation of harbor
facilities and any amenities adjoined to the harbor facilities. As a part of the
consultant's Scope of Work, the consultant shall propose to the City a
classification system reflecting the variety of Harbor uses, shall compare and
discuss various systems of administering these classifications (via permits or
leases, for example), and shall value or appraise the market rental rate applicable
to each classification where appropriate.
The Scope of Work reflecting this Appraisal shall include:
1) Identification of Harbor Uses. The selected consultant shall comprehensively
identify the types or classes of harbor uses under City jurisdiction and /or
management. For example, the City currently is aware of mooring uses, boat sales
and repair uses, charter "party" boat uses, public and private marinas, yacht clubs,
and several more types of harbor uses. As a part of this component of the Scope of
Work, the consultant need not individually identify each specific property or
property owner, instead basing the class identification in part on the inventory
provided (Attachment B - "Leases" and Attachment C - "Commercial Permits ").
2) Classification of Harbor Uses. After identifying these uses, the consultant shall
select a category of use that appropriately names and classifies common or related
I NOTE The Consultant shall only review properties identified in BOLD on the'LeasW Exhibit and any m all •
properties identified on the'Commadal Permits exhibit
• RFP Osification and Appraisal of Harbor Uses
September27, 1999
Page 2
SOJPEOFWORK uses. Secondly, the consultant shall compare and discuss alternative
(cont'd) administrative tools to manage each classification (such as permits or leases).
3) Valuation of Classifications. In this step, the consultant shall make a general
appraisal of the market rental rate of the assets within each category or
classification. In conducting this appraisal, the consultant may include the
following factors:
• The consultant's prior appraisal experience;
• Values and /or rates charged within other comparable harbors (assuming
this factor is used, the consultant shall include an explanatory exhibit
showing such rates and values),
• Amenities -such as parking, other on -shore facilities, and more -that
contribute to the value of the tideland properties;
• Any other factors identified by the consultant as unique to Newport
Harbor; and
• Application of all appropriate appraisal methods and techniques.
The purpose of this appraisal is to assign a market rental rate appropriate for each
category or classification. Any assigned value shall be flexible enough to allow the
City to reasonably reflect minor variations in harbor uses WITHIN specific
classifications and to adjust any lease rate accordingly. The valuation analysis
shall further compare and discuss the market rental rate applicable under the
various alternative administrative systems identified in Step 2.
4) Appraisal Report. The selected consultant shall prepare and complete an
• Appraisal Report reflecting all portions of this Scope of Work. The Report shall be
concise, descriptive (using examples where appropriate), and suitable for formal
presentation to the City Council of the City of Newport Beach This Report shall
be addressed to the City Manager, and shall include ten copies.
5) Council Meeting Attendance. As needed, the consultant shall be available to
attend any City Council meeting where the consultant's Appraisal Report is
discussed. During these meetings, the consultant may be asked to answer
questions about the Consultant's work and /or present the Report itself.
The successful proposer will be chosen by City staff and recommended to the City
Council for formal approval and later Award of Contract. Staff may conduct
interviews of the best - qualified consultants if deemed necessary. The proposals
shall be evaluated on the following criteria:
• Qualifications of the consultant, including appropriate appraisal licensing,
certification, experience, and familiarity with California harbor property and
facility valuation. Past history with the City may be considered, but should
not deter proposers from responding to this RFP.
• Responsiveness to this RFP.
• Ability to complete the Scope of Work within the time constraints identified.
• Cost of engagement.
. • References from other California governments and agencies.
• RFP 0ification and Appraisal of Harbor Uses
September 27, 1999
Page 3
PROPOSALFORMAT: Proposers must submit responses to this RFP in the following format: •
• Cover Letter/Introduction. Within not more than two pages, please
introduce your firm and summarize your proposal. Describe your general
understanding of the Scope of Work and your general approach to
responding to the City's requirements. Please include the name, telephone
and fax number, and e-mail address of the primary contact for the proposal.
• Qualifications. Include specific information regarding knowledge and
experience in conducting valuations or appraisals of harbor- related uses for
other California jurisdictions. Include names of clients and descriptions of
assignments of a nature similar to this Scope of Work. Include the names
and telephone numbers of these clients if your firm has served these clients
within the last three years.
• Technical Approach and Work Plan. Provide a detailed work plan,
methodology, and schedule for the Scope of Work described within this
RFP. Suggest progress review meetings where appropriate, specific output
generated at various steps, major milestones, and an assessment of any City
staff time that may be required to assist your firm in its work.
• Staffing. Identify the project leader and list the individuals who will
participate in the project. Identify direct experience with similar Scopes of
Work for each participant and the project leader. Include phone numbers
and e-mail addresses for these individuals.
• Fees. State all fees and charges for the proposed services and work products,
including the details of any "extras" or "add-ons" with your firm's expected •
payment schedule.
CLOSINGTllNEAND Your signed proposal must be submitted in a single envelope addressed to and
DATE marked as follows:
RFP #99 -1(CM) -Classification and Appraisal of Harbor Uses
Attn: Dave Kiff, Deputy City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658
OPENING The envelope with completed proposal must be received at the above address on
PROCEDURE or before 5:00 p.m. on October 21, 1999. Late proposals will not be accepted.
There will be no public opening of proposals. Prices and other proposed
information will be made public after the proposal is awarded. At that time, the
executed contract will become public information. The City reserves the right to
reject all bids.
CONIRACFAWARD The City anticipates awarding a contract on or before November 8,1999. The
DATE PROJECfEND consultant shall complete the Scope of Work within 90 days of Award of Contract.
DATE;INFORMATION The City encourages proposers to contact the City for further information. Please
direct your inquiries to Dave Kiff at 949/644 -3002.
ATTACHMENTS: Attachments A (Map); B (Tidelands Leases); and C (Commercial Permits) .
•
Request for Proposals
CITY OF NEWPORT BEACH
CITY MANAGER'S OFFICE
Dave Kiff, Deputy City Manager
949/644 -31702
CLASSIFICATION AND APPRAISAL OF
HARBOR USES
SYNOPSISOFRFP. The City of Newport Beach seeks to improve the management of its harbor
properties. It therefore invites proposals for consultant services to perform a
classification and appraisal of specific City -owned or managed tidelands assets
within and surrounding Newport Harbor. This activity will lead to the
development of a rate structure and property management plan for these assets. A
map of these properties is included as Attachment A. These asset classes include,
but are not limited to:
• Public and private marinas that lease slip spaces to tenants.
• Marinas that rent space to commercial harbor operations.
• Piers that abut residences.
• • Commercial boat service operations, including gas docks, boat repair
facilities, and boat retail operations.
• Boat moorings, including shore moorings and offshore moorings.
The selected consultant shall have a particular expertise in the valuation of harbor
facilities and any amenities adjoined to the harbor facilities. As a part of the
consultant's Scope of Work, the consultant shall propose to the City a
classification system reflecting the variety of Harbor uses, shall compare and
discuss various systems of administering these classifications (via permits or
leases, for example), and shall value or appraise the market rental rate applicable
to each classification where appropriate.
The Scope of Work reflecting this Appraisal shall include:
1) Identification of Harbor Uses. The selected consultant shall comprehensively
identify the types or classes of harbor uses under City jurisdiction and /or
management. For example, the City currently is aware of mooring uses, boat sales
and repair uses, charter "party" boat uses, public and private marinas, yacht dubs,
and several more types of harbor uses. As a part of this component of the Scope of
Work, the consultant need not individually identify each specific property or
property owner, instead basing the class identification in part on the inventory
provided (Attachment B - "Leases'" and Attachment C - "Commercial Permits ").
2) Classification of Harbor Uses. After identifying these uses, the consultant shall
select a category of use that appropriately names and classifies common or related
. I NOTE The m ultmd shall onhy review properties identified M BOLA m the' lessee Exhibit and any or all
properdm LdendW m the'Con mer W Permits' exhiML
• RFP ifiwNon and Appraisal of Harbor Uses
Sepi mber27, 1999
Page 2
SOOPEOFWORK uses. Secondly, the consultant shall compare and discuss alternative
(cant'd) administrative tools to manage each classification (such as permits or leases). .
3) Valuation of Classifications. In this step, the consultant shall make a general
appraisal of the market rental rate of the assets within each category or
classification. In conducting this appraisal, the consultant may include the
following factors:
• The consultant's prior appraisal experience;
• Values and /or rates charged within other comparable harbors (assuming
this factor is used, the consultant shall include an explanatory exhibit
showing such rates and values),
• Amenities -such as parking, other on -shore facilities, and more -that
contribute to the value of the tideland properties;
• Any other factors identified by the consultant as unique to Newport
Harbor; and
• Application of all appropriate appraisal methods and techniques.
The purpose of this appraisal is to assign a market rental rate appropriate for each
category or classification. Any assigned value shall be flexible enough to allow the
City to reasonably reflect minor variations in harbor uses WITHIN specific
classifications and to adjust any lease rate accordingly. The valuation analysis
shall further compare and discuss the market rental rate applicable under the
various alternative administrative systems identified in Step 2.
4) Appraisal Report. The selected consultant shall prepare and complete an
Appraisal Report reflecting all portions of this Scope of Work. The Report shall be
concise, descriptive (using examples where appropriate), and suitable for formal
presentation to the City Council of the City of Newport Beach. This Report shall
be addressed to the City Manager, and shall include ten copies.
5) Council Meeting Attendance. As needed, the consultant shall be available to
attend any City Council meeting where the consultant's Appraisal Report is
discussed. During these meetings, the consultant may be asked to answer
questions about the Consultant's work and /or present the Report itself.
The successful proposer will be chosen by City staff and recommended to the City
Council for formal approval and later Award of Contract. Staff may conduct
interviews of the best - qualified consultants if deemed necessary. The proposals
shall be evaluated on the following criteria:
• Qualifications of the consultant, including appropriate appraisal licensing,
certification, experience, and familiarity with California harbor property and
facility valuation. Past history with the City may be considered, but should
not deter proposers from responding to this RFP.
• Responsiveness to this RFP.
• Ability to complete the Scope of Work within the time constraints identified.
• Cost of engagement.
• References from other California governments and agencies. •
RFP &ifii -lion and Appraisal of Harbor Uses
September27, 1999
Page 3
PROPOSALFORMAT: Proposers must submit responses to this RFP in the following format:
• Cover Letter/Introduction. Within not more than two pages, please
introduce your firm and summarize your proposal. Describe your general
understanding of the Scope of Work and your general approach to
responding to the City's requirements. Please include the name, telephone
and fax number, and e-mail address of the primary contact for the proposal.
• Qualifications. Include specific information regarding knowledge and
experience in conducting valuations or appraisals of harbor - related uses for
other California jurisdictions. Include names of clients and descriptions of
assignments of a nature similar to this Scope of Work. Include the names
and telephone numbers of these clients if your firm has served these clients
within the last three years.
• Technical Approach and Work Plan. Provide a detailed work plan,
methodology, and schedule for the Scope of Work described within this
RFP. Suggest progress review meetings where appropriate, specific output
generated at various steps, major milestones, and an assessment of any City
staff time that may be required to assist your firm in its work.
• Staffing. Identify the project leader and list the individuals who will
participate in the project. Identify direct experience with similar Scopes of
Work for each participant and the project leader. Include phone numbers
and e-mail addresses for these individuals.
• Fees. State all fees and charges for the proposed services and work products,
including the details of any "extras" or "add -ons" with your firms expected
payment schedule.
CLOSINGTIMEAND Your signed proposal must be submitted in a single envelope addressed to and
DATE marked as follows:
RFP #99 -1 (CM) -Classification and Appraisal of Harbor Uses
Attn: Dave Kiff, Deputy City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 926M
OPENING The envelope with completed proposal must be received at the above address on
PROCEDURE or before 5:00 p.m. on October 21, 1999. Late proposals will not be accepted.
There will be no public opening of proposals. Prices and other proposed
information will be made public after the proposal is awarded. At that time, the
executed contract will become public information. The City reserves the right to
reject all bids.
CONIRACTAWARD The City anticipates awarding a contract on or before November 8,1999. The
DAT$PROJECFEND consultant shall complete the Scope of Work within 90 days of Award of Contract.
DATL;IINFORMATION The City encourages proposers to contact the City for further information. Please
direct your inquiries to Dave Kiff at 949/6443002
ATTACHMENTS: Attachments A (Map); B (Tidelands Leases); and C (Commercial Permits)
NOT INCLUDED IN CITY COUNCIL PACKET