January 28, 2025
Agenda Item No. 13
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Lauren Wooding Whitlinger, Real Property Administrator - 949-644-3236, [email protected] TITLE:
License Agreement with The Regents of the University of California for Operation of a Coastal Observation System at the Newport Pier ABSTRACT:
Under an agreement with the City of Newport Beach, the Regents of the University of California (UCSD) installed an ocean observation system at the Newport Pier around 2005, to measure and monitor ocean water. In addition to renewing the term of the agreement with the City, UCSD has requested to install additional monitoring equipment and signage about the system at the Newport Pier. For the City Council’s consideration is a new License Agreement (License) (Attachment A) with UCSD, for use of area under the deck of the Newport Pier for a term for 10 years, including a request to waive City Council Policy F-7 for less than fair market value rent.
RECOMMENDATIONS:
a) Find this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing facilities) and Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; b) Authorize the City Manager and City Clerk to execute the License Agreement between the City of Newport Beach and The Regents of the University of California for operation of a coastal observation system on City property, on the Newport Pier located at 1 Newport Pier, in a form substantially similar to the amendment attached to the staff report; and c) Approve a waiver of City Council Policy F-7 – Income and Other Property based on the findings contained in this staff report and the Agreement, that charging less that fair market rent promotes the City’s goals to provide essential or unique services to the public, that cannot otherwise be provided if full market rates were charged.
DISCUSSION:
The Newport Pier is located on the Balboa Peninsula at 21st Street and West Ocean Front. The City-owned pier projects over 1,000 linear feet into the Pacific Ocean from the historic McFadden Square.
The end of the pier, which was previously developed with a restaurant, includes an under-pier deck that provided utility access to the restaurant and an emergency access ramp for Newport Beach Lifeguard operations. With the significant length of Newport Pier, which extends several hundred feet beyond the average break point for waves, the location is ideal for monitoring nearshore underwater ocean activity.
History
Approximately in 2005, UCSD or the University of California San Diego, a consortium member of the Southern California Coast Ocean Observations Systems (SCCOOS), partnered with the City to obtain access to install sensors underwater at the end of the pier to collect data and measure ocean water temperature, salinity, pH, Oxygen, conductivity, chlorophyll, and water density and pressure. The equipment is operated by the Scripps Institution of Oceanography in collaboration with the Orange County Sanitation District. Three other ocean piers in Southern California gather the same information which is used to support ocean health and coastal-ocean water quality by coastal managers, agencies, researchers, and the general public. The data is available to the public via SCCOOS website – https://sccoos.org/autoss/.
The information is also used by the City to prepare the Newport Beach Lifeguard Surf Report, a recording of the current beach conditions which is updated twice daily at 7:30 a.m. and 2 p.m. and can be accessed by calling 949-644-3171.
UCSD, under the proposed Agreement, requests to continue its use of approximately 9 square feet of the under-pier deck at the pier for its monitoring equipment. Additionally, the Agreement would allow UCSD to install two new interpretive signs to provide the public access to the current ocean temperature data via QR code, and two new equipment cabinets increasing the total license area footprint to approximately 16 square feet. City staff and UCSD have negotiated the terms of the Agreement and submit it for the City Council’s consideration.
City Council Policy F-7, Income and Other Property
Pursuant to City Council Policy F-7 – Income and Other Property (Policy) (Attachment B), when less than fair market value rent is received and a waiver is requested, staff believes that there is a public benefit to the data that is being collected. Therefore, the following findings can be made:
UCSD provides an essential or unique service to the community that cannot otherwise be provided if full market rates were charged; and With the proposed consideration for the License Agreement at less than fair market value, the use promotes the City’s goals to provide a public benefit to the community, is a marine-related service, and is of statewide benefit and may not otherwise be provided if full fair market value of the property was required.
License Agreement
The proposed terms of the License Agreement, for use of approximately 16 square feet at the pier, are summarized below:
The term shall commence on January 28, 2025, and shall terminate the earlier part of the 10th year after completion of installation of the new observation system equipment, or June 30, 2035.
In lieu of payment of a license fee, UCSD shall provide to the City all information gathered by the observation system.
UCSD shall not interfere with the City’s access to the under-pier deck and shall ensure it is maintained in a neat and clean manner. Additionally, UCSD shall ensure its observation system does not cause any direct or indirect interference with the City’s communications equipment.
The license area will be accepted as-is and UCSD shall be responsible for the cost of all utility services necessary for the operation of its observation system.
UCSD shall obtain any permits or approvals necessary for the installation and operation of its observation system equipment.
UCSD shall provide certificates of insurance to the satisfaction of the City’s risk manager, naming the City as additional insured.
The License has been reviewed by the City Attorney’s Office and has been approved as to form. UCSD has reviewed and approved the terms of the License.
FISCAL IMPACT:
There is no fiscal impact related to this item. Any utility reimbursements will be a pass-through of costs and will not result in a net revenue or expenditure to the City.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing facilities) and Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – License Agreement
Attachment B – City Council Policy F-7, Income and Other Property 13-3
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License Agreement with The Regents of the University of California for Operation of a Coastal Observation System at the Newport Pier January 28, 2025
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