November 18, 2025
Agenda Item No. 11
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:
Lease Agreement with Harbor Island Community Association for Use of Tidelands Property for the Harbor Island Bridge ABSTRACT:
Harbor Island is a private residential neighborhood located in Newport Harbor, consisting of 30 homes, and is accessed by a private vehicular bridge. The Harbor Island Community Association owns the bridge and seeks to perform certain retrofits of the structure to bring it to current standards. The bridge spans public filled-, tide-, and submerged lands owned by the State of California and managed by the City of Newport Beach (City). For the City Council’s consideration is a new, 50-year Lease Agreement (Agreement) (Attachment A) with Harbor Island Community Association for operation and management of the private bridge, including a request to waive the open bid requirements of City Council Policy F-7, Income and Other Property.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines because it has no potential to have a significant effect on the environment; b) Authorize the City Manager and City Clerk to execute the Lease Agreement By and Between the City of Newport Beach and Harbor Island Community Association for the Harbor Island Bridge, in a form substantially similar to the agreement 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 conducting an open bid process or converting the property to another use would result in vacancy and other expenses that would outweigh other financial benefits to the City, and that the use promotes the City’s goals to provide essential or unique services to the community.
DISCUSSION:
Tidelands Background
Harbor Island is located in Newport Harbor south of East Coast Highway and Bayside Drive near Linda Isle and Beacon Bay; it was first dredged in 1909 and subdivided into residential lots in 1926. The island was subdivided and mapped entirely for private residential lots with easements for road and utility purposes. In 1943, the island was annexed to the City of Newport Beach (City) and currently contains 30 single-unit residential lots on approximately 8.5 acres of land.
While the residential lots are privately owned, the island is surrounded by a 30-foot-wide band of filled publicly-owned tidelands (see red shaded area in Figure 1 below). This tidelands area is located between the adjudicated high tide line and the bulkhead line, and near the bridge is considered granted lands in trust to City (see light blue shaded area in Figure 1 below) to manage on behalf of the State of California.
Figure 1 – Harbor Island aerial showing tidelands boundaries Upon annexation of the island, the City entered into a 25-year lease agreement with the Harbor Island Community Association (Association) allowing use of the filled tidelands around the island’s entire perimeter for recreational purposes consistent with the City’s tidelands grant (Recreation Area). In 1968, just before the lease to the Association expired, it was determined the tidelands grant to the County of Orange (County) included jurisdiction over approximately 90% of the Recreation Area surrounding Harbor Island (see orange shaded area in Figure 1 above), and the City elected not to renew the lease with the Association. Following the expiration of the City’s lease to the Association, the County leased the Recreation Area to the Association.
In 1984, the City and County’s tidelands grants were legislatively amended by Chapter 715 of the State of California Statutes of 1984, formally allowing private use of the Recreation Area by the individual homeowners in exchange for fair market value rent under the terms of a long-term lease. Since that time the City and County have maintained lease agreements with each property owner on Harbor Island for use of the Recreation Area. Additionally, use of the tidelands harbor-ward of the bulkhead line are subject to residential pier permits.
Harbor Island Bridge
The Harbor Island bridge provides vehicle and pedestrian access to the island and is the only means of access from the mainland. The bridge, which is located at the terminus of Harbor Island Road and connects to the east end of the private street on Harbor Island (Figure 2), is part of the private infrastructure constructed and maintained by the Association, serving the property owners on the island.
Figure 2 – Aerial view of Harbor Island bridge
The first bridge to the island, a single-lane wooden bridge, was replaced by the existing structure in 1963. The bridge is approximately 158 feet long and 15 feet wide, with five spans supported by four bents with two piles each and retaining walls at either end. In addition to the bridge which spans the open water of the tidelands, the Association has installed related improvements at either end of the bridge, within the filled tidelands. These improvements consist of a guard shack, parking space, an electric gate and associated mechanical equipment, intercom signal lights, bollards, signage, curbing and hardscape, and landscaping. The bridge and associated improvements currently occupy approximately 4,500 square feet of tidelands.
Proposed Bridge Modifications
In 2002, a bridge inspection obtained by the Association determined the bridge is structurally deficient by current Caltrans standards and traffic loading of the bridge was limited to one 20-ton vehicle. The Association hired professional designers and consultants to facilitate a project to retrofit the bridge to bring it up to current standards through improvements to the piles and pile caps, encasing the existing caps and piles in new materials. Proposed construction of the retrofit will include temporary platforms placed on each side of the bridge, and temporary closures that will preclude public access under the bridge during construction.
In 2021, the Association elected to proceed with the retrofit project and submitted a Planning Application (PA2022-073) to the City and received an Approval-in-Concept (AIC2022002), allowing them to submit a coastal development permit application to the California Coastal Commission. Upon approval of the coastal development permit, the Association will submit construction plans to the City to obtain the necessary permits to complete the project.
Staff determined the Association’s exclusive use of portions of the filled, tide, and submerged lands in Newport Harbor is authorized under the City’s tidelands grant, subject to entering into a lease agreement and payment of fair market value rent. The Association has requested a lease agreement for its continued use of the tidelands for operation of the private bridge and the proposed improvements. The Agreement covers the footprint of the bridge and improvements, including the proposed retrofit changes, which will occupy approximately 5,262 square feet of City-managed tidelands (Property) (Attachment B).
City Council Policy F-7, Income and Other Property
Policy F-7 (Attachment C) requires negotiations regarding the leases of income property to seek revenue equivalent to the open-market value of the highest and best use of said property; and, whenever practicable the City shall conduct an open bid or proposal process to ensure the highest financial return, unless specific findings can be made. Staff believes the following findings can be made, as required by Policy F-7 when an open bid is not conducted, and a waiver is requested:
The City is prevented by the tidelands grant from converting the Property to another use; Converting the Property to another use or opening it to competitive bids would create inequities for the residents of Harbor Island; and The Property provides an essential or unique service to the community that might not otherwise be provided were an open bid required.
Lease Agreement
The proposed terms of the Agreement are summarized below:
The Association will have exclusive use of the Property to maintain a vehicular bridge to allow access to the residences on Harbor Island, with the exception of the water covered areas, which are subject to public access and use consistent with the City’s tidelands grant.
The initial term is 50 years, unless terminated earlier as provided by the Agreement.
Rent in the amount of $40,938.36 per year shall be paid by the Association. The rent shall be adjusted by the change in the Consumer Price Index (CPI) each year upon the anniversary of the effective date of the Agreement. A reappraisal of the rent, to adjust to market rate, may be completed upon the 30th lease year.
The Association shall be responsible for obtaining the necessary permits and approvals from state and local agencies to retrofit, reconstruct, maintain, and operate the bridge on the Property.
The Association is solely responsible for the cost and expense of the proposed retrofit project, and ongoing maintenance and operations costs of the bridge and Property.
The Association shall provide the City with bonds covering the costs of the proposed retrofit and any other future work that exceeds $25,000 in value.
The Association shall provide certificates of insurance with the scope of coverage and amounts subject to the satisfaction of the City’s risk manager, naming the City as additional insured.
The Agreement has been reviewed by the City Attorney’s Office and has been approved as to form. The Association has reviewed and approved the terms of the Agreement.
FISCAL IMPACT:
Revenues collected pursuant to the proposed Agreement, $40,938.36 per year as adjusted annually by the change in CPI, will be posted to the Tidelands Fund (Fund 100) accounts in the Community Development Department and will be included in future years’ budgets.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Class 1 exemption applies to the repair, maintenance, and minor alteration of existing public or private structures, involving negligible or no expansion of existing or former use. The project qualifies for this exemption since it would include structural improvements to an existing bridge and not increase vehicular capacity or other expansion of use. The bridge, which was constructed in 1963, has been determined to be structurally deficient and would be retrofitted using commonly-utilized substructure improvements consistent with current seismic design standards.
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 – Lease Agreement
Attachment B – Property Depiction
Attachment C – City Council Policy F-7
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Lease Agreement with Harbor Island Community Association for Use of Tidelands Property for the Harbor Island Bridge November 18, 2025
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