MOORING RENTAL RATES
JULY9,2024 I CITYCOUNCIL
PURPOSE OF AGENDA ITEM
1) Continue to comply with Grand Jury report -
0 Set mooring rates using an appraisal
2) Address State Lands Commission concerns -
• Charge fair market value rent for public tidelands
• Prohibition on private transfer and prohibit private profit on public Lands
I,
CITY O�
NEWPORT BEACH
WHAT IS A MOORING?
Onshore
(accessible from land)
-5
I, i
CITY OF
NEWPORT BEACH
Offshore
(bayward of pierhead line)
fore and aft mooring
(double -point)
3 m
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VILLAGE:
HARBOR MOORING FIELIN& Ralbou Pier
Mooring Areas
Public Dock
Pumpout Station
Marina Park/Harbormuster
Boat Ramp
City of Newp-ort Beach
Moorings and HarbormosTer
k
Fuel Dock
13 Public. Slips
Coast Guard
Harbor Patrol
t
Anchorage
— —
Ferry Crossing
Marina Fark,"'Harbo r m aster
1600 W. Balboa Rlyd.
Newporf Beach, CA 92663
949- 270-8159
[email protected]
newportharbor.org
3Fr
Permit
Permittee maintains
mooring tackle
* Transferrable
* 1,209 existing permits
* $3.35 per linear foot per
month (offshore)
* $1.67 per linear foot per
month (onshore)
J,
CITY OF
NEWPORT BEACH
License
* City maintains mooring
tackle
* Not transferrable
* 16 existing licenses
* $15 per linear foot per
month (offshore, 40-foot)
* $9 per linear foot per
month (onshore, 18-foot)
* Rents set in 2016 by Council Resolution 2016-17
e Current Rents
Onshore: $1.67 per linear foot per month
Offshore: $3.35 per linear foot per month
*Adjusted annually by lesser of 2% or CP11
* Resolution calls for reappraisal every 5 years
J,
CITY OF
NEWPORT BEACH
LEGAL REQUIREM
AM
*Tidelands are owned by State, managed by City
Governed by:
e State Statutes — Beacon Bay Bill
• Municipal Code
• Council Policy
I
1, �
CITY OF
NEWPORT BEACH
STATE OF CALIFORNIA
Beacon Bay Bill
Limits uses to public harbor, beaches,
marinas, aquatic and recreational
facilities for the general public, and
preservation
-9 Private limited use allowed when:
Lease or permit
Less than 50 years
No discrimination in rates, tolls,
charges - rent based on value
I,
CITY OF
NEWPORT BEACH
California Constitution
9 Section 6, Article XVI Public Finance
4, City is fiduciary
No gift of public funds or gift of
public lands to any individual or
corporation
L-01
CITY OF NEWPORT BEACH
Municipal Code
e Sections 17.60.020(E) and
17.60.060(D) — rental rates for
tidelands uses set at fair market
value (FMV)
e FMV determined by appraisal
FMV established by City Council
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CITY OF
NEWPORT BEACH
Council Policy F-7
FMV required for private use of public
lands
e Exceptions for public use or
community benefit
Waiver of policy requires City Council
approval
* Onshore appraisal completed in December 2021
* Offshore appraisal completed in December 2023
8 Harbor Commission meetings in 2022 and 2024 to
discuss
I, i
CITY OF
NEWPORT BEACH
* Recommendations Adopted: April 10, 2024
Establish mooring rental rates at 24% of Newport
Harbor Marina Index (NHMI)
* NHMI is average of 7 low- to mid -price marinas in harbor Recommendation considered 30% in offshore appraisal
report and other factors
Phase -in
rates
beginning
January 2025, then
annually
each
July,
from
2025 through
2029
* Adjust amounts each year based on NHMI
e Rates: Annual increase to fair market rates over 5 years 9 Current:
*Jan.2025:
• July
2025:
• July
2026:
• July
2027:
• July
2028:
- July
2029:
$3.35/LF/month
*$4.16/LF/month
*$5.04/LF/month
*$6.78/LF/month
*$8.53/LF/month
*$10.28/LF/month
*$12.02/LF/month
*estimated based on current NHMI (rates for 40-foot offshore mooring) 9 Maintenance: Permittee continues to maintain tackle
* Mooring permittees:
9 Rate increase severe
* Unaffordable rent, causing need to relocate or sell vessel 9 Expense to maintain and replace tackle adds to costs
* State Lands Commission:
9 Transferability
* Collect fair market value rent across tidelands uses
I,
CITY OF
NEWPORT BEACH
* Grandfather existing permittees at current rates
e Continue lesser of 2% or annual CPI adjustment
One-time private transfer of permit allowed for 4 years (2028)
e Subsequent mooring users must go through City License Permit transferee's rates continue at current rates for 4 years from transfer date, then converted to City License * New mooring users issued City License
Rate change
City covers maintenance of mooring and tackle
Yacht Clubs given 8 years at current rates, then subject to City License rates as of 2032
Rates: No chan to current rate structure
- Onshore - $1.67/LF/month
Offshore - $3.35/LF/month
Death: Beneficiary given 1 year to relocate or sell
vessel before subject to City License/increased rates
Liveaboards: No change to current rates or permit
9 Maintenance: Permittee continues to maintain tackle
I,
CITY OF
NEWPORT BEACH
15 0 No change to liveaboard permits under IVIC 17.40
0 Continue to allow based on 7% of total offshore
mooring permits (currently 51)
Harbor Commission
Recommendation
* Mooring rates at 24% of NHMI
* Rate based on mooring size
Rate increase phased -in through
2029
Alternative
Recommendation
Grandfathered permittees can
maintain liveaboard permit
Transferred permit, converted to a
City License, can maintain liveaboard
permit
Harbor Commission
Recommendation
Balboa Yacht Club & Newport Harbor
Yacht Club (offshore fields)
Mooring rates at 24% of NHMI
Rate based on mooring size
Rate increase phased -in through
2029
Lido Isle Community Association
(onshore field)
Mooring rates at 24% of NHMI
Rate based on mooring size
Rate increase phased -in through
2029
Alternative Recommendation
Current Rates through 2032
Balboa Yacht Club & Newport
Harbor Yacht Club (offshore fields) -
$3.35/LF/month
Lido Isle Community Association
(onshore field) - $1.67/LF/month
Pay Mooring License Rates in 2032
Balboa Yacht Club & Newport
Harbor Yacht Club (offshore fields)
- Rates based on mooring size and City
License rates
Lido Isle Community Association
(onshore field)
0 *$9.00/LF/month
(*estimated based on current rate)
17 Mooring Rental Rate Comparison
WLW Source Rate/LF/Month Rent/Month
I
AOL
Current 40-foot Mooring Permit Rental
Rates $3.35 $134.00
(Reso No. 2016-17)
Harbor Commission Recommendation -
24% of 2024 BYB Rate
40-Foot (April 10, 2024) $12.56 $502.40
City Staff Recommendation —
-Existing/Grandfathered Permittees $3.35 $134.00
40-Foot
-City Mooring License Program $15.00 $600.00
40-Foot (March 1, 2024)
THANK YOU!
Jaime Murillo, AICP, Deputy Community Development Director Lauren Wooding Whitlinger, Real Property Administrator