We've gotten quite a few calls and emails today wanting to know more about the upcoming West Basin Slip rate hike. We've also talked and exchanged emails with both the East and West Marina managers to make sure we completely understood what is going on as well as why.
Let's start by saying that a more professional reporter than yours truly would have asked Kelly Rinderchenecht a few more and better questions yesterday and somehow would have uncovered what Kelly didn't think to volunteer.
It turns out there were actually only 348 letters sent out yesterday announcing slip rate increases. Those 348 letters went to those west basin tenants who have continuously occupied a slip in the west basin since 2006.
Back in August of 2006, all tenants then in the west basin had their slip rates frozen as part of an agreement between the West Marina management company, TBW, and the County of Orange. This agreement transitioned TBW's previous master lease contract to an operating agreement with a five year term. Of a total of 980 tenants in the West Marina, there are 348 of those grandfathered tenants still in the harbor. Slip rates for these grandfathered tenants have became lower than published rates after annual slip rates increases (applicable to both basins) which by the way occurred before the Dana Point Boaters Association because a visible force within the harbor in 2007.
Note also that those 632 West Marina tenants (980 - 348) who are not getting letters are already paying the same rates as in the east basin. Any differences are reportedly due to slightly difference slip configurations.
Now for more information on this slip rate adjustment is being carried out. It's a bit confusing so please stay with us.
First, the rates are going to be increased in two steps. Step one will take effect March 1. This interim increase will raise grandfathered rates 50% of the difference between what the grandfathered tenants are paying now and the current published rates in the east and west basins. Let's take one example, 35' slips. Grandfathered tenants have been paying $574.55 since 2006. The current east basin rate is $622. The difference is $47.65. 50% to this difference is $23.83 (rounded). My math says that grandfathered tenants will be paying $598.18 per month starting March 1st. Note that these tenants will still be paying for their electricity use at this point, as tenants in the west basin with slips 35' and above have been doing right along.
Got that? Good. Let's roll the calendar forward six months to this coming September 1st. Then the grandfathered tenants will see the other 50% of the rate adjustment. So then, in the case of a 35' slip, the grandfathered tenants will then be paying $622, the same as all 35' slip tenants in the east basin as well as all non-grandfathered 35' slip tenants in the west basin. The rate adjustment calculations for all other slip sizes will be done the same way. A two step rate adjustment, done over 6 months.
One other thing, a bit of good news; separate electric bills will reportedly go away for all west basin tenants effective September 1st.
Any other questions please ask and we'll get answers.
Rodger Beard, President, The Dana Point Boaters Association