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Council discusses renewing dock lease rates; staff to present revised three-year lease template and rates
Summary
Work session members reviewed decades-old dock lease rates, discussed how to update per-foot annual charges, and directed staff to prepare updated lease terms (including a recommended $14 per linear foot annual fee, no retroactive charges, and shorter lease terms) for council consideration.
At the Aug. 12 work session, staff reported that dock leases on city harbor property have not been updated in many years and presented calculations based on the maximum 5% escalation clause in existing leases. The packet included a survey and proposed updated amounts per linear foot. Councilors and staff discussed options including rounding rates and whether to apply increases retroactively.
Staff said that survey work is still outstanding; one calculation using 5% escalation produced figures in the low teens per foot. Participants suggested not imposing retroactive charges and agreed to a rounded annual rate to apply going forward. A split-the-difference approach produced a recommended rate of $14 per linear foot as a starting point. Councilors also discussed lease term length; staff indicated they would avoid the previous 30-year lease template and instead bring a shorter initial term (three years) with renewal options.
Councilors also raised maintenance and liability allocation in lease language; staff will revise draft leases to replace permissive “could” language with stronger “shall” or “will” requirements where the council directs leaseholders to perform repairs and maintenance. No lease adoptions occurred at the work session; staff were directed to return a clean draft lease template and a recommended rate schedule for council action.
