DPBA has been fighting very hard to protect affordable
boating interests!
We're in steady dialog with the Coastal Commission, Brad
Gross and his staff at OC DPH, and many other stakeholders (stay tuned for more in our next
update!) and they're hearing us loud and clear.
You'll learn more about some of our recent accomplishments Thursday
night, including the latest regarding the proposed May 1st slip rent
market rate adjustment. We think you'll be
very pleased.
In our last Boater's Blast we discussed the DPBA's
involvement with the ongoing market rate adjustment. It appears that for some, our use of the
words market rate "increase" may have been cause for concern. So we would like to elaborate on the process and
our efforts on behalf of boaters, to dispel any rumors that we may be working with
the County behind the scenes to increase your slip fee rates (and ours).
First point: Slip fees are NOT required to go up each year, but can be
adjusted upward or downward.
Indeed there's a well structured Operating Agreement
(not a public ordinance) that details a process for adjusting boat slip
prices. We've got it and we've read it, carefully. Per this agreement, each year the effective slip prices
are to be adjusted by changes in the annual Consumer Price Index, often referred
to as "CPI". Note that these adjustments are subject to a 4% cap on any adjustment (up or down).
To learn more about the Los Angeles-Riverside-Orange County
region data specified in the operating agreement click
here. Otherwise just skip the next three paragraphs and go on to the second point.
How to read the data for latest annual CPI: The rows for 2007 and 2008, in the column labeled "Annual" show a difference of 7.67 basis points, which is a 3.5% 2008 annual CPI increase. This period is the period called out in the operating agreement as the basis for rate adjustment. That is, were 2009 a year in which the CPI was to be used. This is not the case however, as is explained in the next point.
Regardless, note that the January 2009 CPI is slightly less than January 2008. In other words, were the most recent figures used, then there would be a .1% DECREASE in CPI rather than a 3.5% increase.
We have
made this fact quite clear to the OC DPH.
Second point: Every 4th year, commencing in the 2005 year, the operating
agreement calls for slip rates to be reviewed and adjusted to
"market" based upon a detailed market rate survey and other factors, as an
alternative to a CPI adjustment.
The
survey process requires a detailed marina survey of "comparable" Orange County
and Southern California (San Diego to Santa Barbara) marinas,
not just a sampling of 3-4 marinas.
DPBA volunteers, especially board member and Treasurer Kevin Hendra, have been working
closely with OC DPH on the effort this time around, as he did back in
2005. DPBA believes the 2005 study
conclusions were not based on inclusive or comparable data. Note that this data was prepared back when our harbor was under jurisdiction of The County's old parks department, prior to establishing OC DPH. We have made
specific recommendations to OC DPH this time, with the intent to improve the survey process for
2009, and subsequent years if this process continues.
We believe that these recommendations will have a substantial beneficial impact on boaters in Dana Point
Harbor.
Third Point: As mentioned in prior Boater Blasts, DPBA has been discussing migration to square footage based slip pricing with OC DPH for several months now.
A detailed Excel financial model, developed by DPBA President Rodger Beard, was provided to OC DPH beforehand and then reviewed at length with Brad Gross, Paul Lawrence and Phoebe Siemion (Budget Officer, OC DPH) on February 18th. (In other words, DPBA came to the table with a solution rather than just complaints.) Another draft of the model was provided later based on this meeting.
To avoid any misunderstanding here, we should add that pricing slip rents by square foot DOES NOT imply a general price increase (the net revenue from all slip rentals should be the same). It only means that all boaters would pay the same rate per square foot. All boaters with slips under 40' length would benefit from this move.
Note that Brad Gross has expressed strong interest in this DPBA proposal.
To learn more, contact Rodger and/or ask Brad about it on Thursday night.