Newport Beach approves mooring permit rental rates increase

A tentative compromise was reached Tuesday night between the Newport Beach City Council and community members on increasing the rental cost of a mooring, with both sides cautiously optimistic.

The issue came to the dais after the Harbor Commission approved recommendation of the increase in April. The city is responsible for managing the tidelands, in which there are 478 onshore moorings and 731 offshore moorings — some of which are managed by third parties such as the Lido Isle Community Assn. and the Balboa Yacht Club, according to a report prepared by city staff for Tuesday’s discussion.

The rates, which have not changed since 2016, are currently $1.67 per linear foot for onshore moorings and $3.35 per linear foot for those offshore. Revenue generated by the mooring permits goes toward the city’s tidelands fund, which funds the Harbor Department, tidelands, environmental protection initiatives and supporting public access and recreation.

Commissioners started looking at the permit costs in 2021 on the behalf of the City Council.

Proposed at the time was a 300% increase in rents, with monthly costs expected to jump to $7.71 per linear foot for onshore moorings and a range of $7.77 to $17.78 per linear foot, depending on the mooring length, for offshore. If approved, the fees would have been implemented over the course of five years, beginning to rise in 2025.

People who held permits for the moorings argued the rent hike was discriminatory and would price them out of Newport Harbor. For those who live aboard their vessels, the proposal would have been tantamount to an eviction notice, as many reported that they lived on fixed incomes.

But an alternative recommendation from city staff Tuesday night suggested the grandfathering of existing permit holders at their current rates with no changes, except for the lesser of either consumer price index adjustments or 2%, until the permit was relinquished. All future moorings owned or managed by the city would be maintained through its license program.

As far as private permit transfers, a permit can be transferred once within a window that ends in August 2028 in order to stay at current rates for four years from the date of transfer.

Yacht clubs would be permitted to remain at current rates for eight years before those permits would also be converted to city licenses.

Dozens filled the City Council chambers and the community room in City Hall Tuesday night to speak out against the initial proposal but overall seemed in favor of the alternative.

Many asked for more time for both themselves and city staff to consider the full scope of the proposal and requested transferability be readdressed. Newport Mooring Assn. president Anne Stenton noted to the City Council the details of the alternative plan had only been made available the Friday before a holiday weekend.

“The city staff’s plan ... has a lot of information that we just haven’t been able to fully analyze and digest. There were some really good questions from the City Council members about it that I think we need to explore some more before we vote on anything,” Stenton said, noting that parts of the proposal appeared to be targeting mooring transferability. “We’re all here for the same reason. We all care about our harbor. We all want what’s best. We all want to work together.”

With the exception of Councilman Erik Weigand, the City Council ultimately voted to approve the alternative recommendation with no changes. Weigand agreed with members of the public who hoped to delay the decision for further discussion.

On Wednesday, Mayor Pro Tem Joe Stapleton said he felt the alternative plan approved brought “resolution and peace” to an issue that he’s seen over a decade now, describing the decision as a “win-win.”

“You look at those who have been on the harbor for a long time and want to continue to be there, it gives them peace of mind because they’re grandfathered in. But, the other win is that it provides access to people who want to get onto the water in the future and don’t have to play the game of transferability, paying upwards of $1,000 a foot for a 40-foot mooring,” Stapleton said.

“Look, we have 16 city mooring licenses today,” he continued. “We went out to see if anybody wanted those and we had 117 people show up. The market has proven that people are willing to be on the city license program. I’m confident that this will continue to allow for the general public and for people to be on the harbor and enjoy the harbor and I think this brings peace and certainty to everyone.

“This has been going on for years. Those that are there now have peace and certainty about their futures look like, but this also provides us the resources to continue to reinvest in the harbor and provide services to these mooring holders in the future,” Stapleton concluded.

Attorney Michael Leifer, who represents some of the mooring permit holders, said Wednesday the alternative plan presented at Tuesday’s meeting was more equitable and an improvement over what was previously suggested, but he would need to see the details in writing.

In a statement issued Wednesday, Stenton said the Newport Mooring Assn. was grateful that the City Council listened to the concerns of mooring users on the proposed rate increases, additionally thanking the state Coastal Commission staff, “for their input and support to keep moorings an affordable option for boaters in Newport Harbor.”

“We look forward to working with the city and agencies to make sure the system is fair to everyone,” Stenton said.