Lower dock fees possible, but move could backfire

The Newport Beach City Council took steps during a study session Tuesday afternoon that could eventually decrease dock fees for residential pier owners.

The council directed city staff to bring forward a proposal that would reduce the dock fees by about 2 cents per square foot, reaffirm language that protects the rights of private dock owners from seizure and adjust the amount of dock space considered usable and therefore subject to fees.

In 2012, the City Council approved an ordinance that increased dock fees for residential piers, fuel docks and commercial marinas on state-owned, city-administered tidelands. The decision, which came amid significant public outcry, meant that pier owners would, by 2017, be paying 52.5 cents per square foot of usable dock space instead of a flat fee of $100 annually.

The fees started out at 12.9 cents per square foot of usable dock space in 2013 and have increased roughly 10 cents each year, according to a city staff report. The ordinance also allows residential pier owners to rent out dock space — a practice that had previously been illegal.

Councilmen Kevin Muldoon and Scott Peotter and Mayor Pro Tem Diane Dixon indicated they were in favor of lowering the fees. Yearly rent on residential docks have ranged from $400 to $2,000, according to city documents.

Mayor Ed Selich and councilman Marshall “Duffy” Duffield recused themselves from the discussion.

Recently seated council members Muldoon, Peotter, Dixon and Duffield, who campaigned on the slate known as Team Newport, had vowed that they would review the dock fees if elected in November. The four were aided in their campaign by Bob McCaffrey, a local activist and head of the Stop the Dock Tax group.

Opponents, many from Stop the Dock Tax, have said the increases are simply a money grab by the city.

“Just because you can charge more doesn’t mean you should,” Muldoon said during the study session.

Councilman Keith Curry, who along with the previous council voted in favor of the increased rates, warned his colleagues to proceed with caution.

The fee increases were needed to meet state requirements that the city charge fair market rents on state-owned lands, Curry said.

The State Lands Commission, which entrusted Newport Beach as the steward of the tidelands, could easily take back power, and this could result in higher fees imposed on residential dock owners, he said.

In addition, Curry said, the state would be able to spend the money any way it sees fit, and that might not always benefit Newport Beach. Currently, the revenue collected is used for improvements to the harbor, according to city documents.

Councilman Tony Petros agreed that the council should be careful not to “wake the beast.”

State Tidelands Commission staff has expressed interest in the council’s discussion of the issue, said City Manager Dave Kiff.

The proposal will come before the council for consideration at a later meeting.

The council also requested that the Harbor Commission review current fees for on-shore and off-shore moorings.