Sec. 17-36. Disposition of berth or mooring upon sale or other transfer of vessel.
a. Disposition of Berth or Mooring upon Sale of Vessel.At the time of the purchase of any interest in an existing vessel occupying a berth or mooring in the Monterey Harbor pursuant to a license agreement:
1.If the original licensee no longer wishes to utilize the berth or mooring for a vessel of his/her own pursuant to Section 17-34 herein, the berth or mooring shall revert to the City for reassignment. The original mooring licensee may remove privately owned mooring gear, provided it is removed within 10 days of the release of the mooring. If the mooring gear is not removed, the City shall assume ownership of the gear and retain or dispose of the gear in its sole discretion.
2.If the new vessel owner does not wish to obtain a berth or mooring, the Harbormaster shall assign the berth or mooring to the next person on the waiting list.
3.If the new vessel owner does wish to berth or moor the vessel in the Monterey Harbor, a suitable berth or mooring will be provided. When the Harbormaster approves a new license for the owner(s) of a purchased vessel, the berth or mooring that is provided to the new vessel owner shall suit the vessel and be comparable to the prior berth or mooring, but may not necessarily be the same as held by the former berth licensee. The new vessel owner will be charged the berth or mooring assignment rate, as set by City Council resolution, to be paid until such time as the new vessel owner may be offered a regular berth or mooring, respectively, from the waiting list, except that if the new vessel owner intends to use the berth or mooring for commercial fishing operations, such purchase shall be exempt from paying the assignment rate and instead shall be charged the regular rate; provided, that for each year after the vessel purchase, the commercial fishing quota, as set by City Council resolution, can be attributed to the vessel using the berth or mooring, or if it is a “light boat,” by the larger vessel it supports. If the commercial fishing quota is not verified as requested by the Harbormaster, the assignment rate will go into effect.
4.For the City to provide a berth or mooring the purchased vessel must:
i.Be seaworthy and operable as defined in this Chapter.
ii.Remain in the berth or mooring provided by the Harbormaster for at least 30 months to continue the license agreement. Additionally, for every two months which that individual has been on the Monterey berth or mooring waiting list, one month may be deducted from the required wait for vessel replacement, as calculated at the time of the license transfer. Exceptions will be made to this provision if the vessel departs on an extended voyage, including commercial fishing operations, provided it is still owned and operated by the licensee upon its return to Monterey, or if the vessel is damaged to the extent it is no longer feasible to remain in the Harbor.
b. Disposition of Berth or Mooring Upon Assignment of Vessel.
1.For purposes of this subsection, “assigned” or “assignment” shall refer to the gift, bequest, or any other type of transfer of ownership of a vessel without any consideration.
2.If a vessel occupying a berth or mooring pursuant to a license agreement is assigned, such assignment shall not be subject to the provisions of this Chapter regarding vessel sales; provided, that the berth or mooring is used only for the assigned vessel. Berths or moorings used for commercial fishing operations shall be exempt from the prohibition of replacing the assigned vessel, provided the new vessel is used primarily for commercial fishing.
3.Berths or moorings acquired through assignment may be subsequently sold, subject to the vessel sale provisions of this Chapter, to a new owner.
4.Berths or moorings acquired through assignment may be subsequently assigned, subject to the vessel sale provisions of this Chapter, to a new owner.
5.New partners in the vessel will not be allowed following the assignment.
c. Vessel Partnership.For vessel partnerships involving the partial transfer of any interest in the vessel to another person or legal entity and entered into after July 1, 1997, with a licensee who obtained his or her berth or mooring prior to that date in order to retain a berth or mooring:
1.A written partnership agreement shall be provided with a new DMV registration or Coast Guard document showing all owners’ names;
2.The berth or mooring assignment rate, as applicable, will apply;
3.New vessel partners will not be added to the license agreement except in the circumstance where the new partner has been on the waiting list long enough to obtain a berth or mooring on his/her own. The City’s legal relationship remains solely with the licensee, except as provided herein; and
4.For vessel partnerships for a vessel which has not previously occupied a berth or mooring, the original licensee partner(s) shall demonstrate at least a 51% financial interest in the vessel, contribute a commensurate share to the continuing expenses of the vessel, and personally use the vessel for travel out of the Harbor a minimum of 10 times out of any continuous 12-month period. The licensee’s financial interest may not be gifted from the nonlicensee boat partner(s) or attributed to any value assigned to possessing a berth license. The Harbormaster shall have the right to review the financial records of the vessel and request confirmation of personal use in order to confirm satisfactory compliance with the requirements herein. Failure to comply with this section shall result in the forfeiture of the berth or mooring to the City.
d. Personal Economic Gain Disallowed.The fact that a berth or mooring may be provided to a new vessel owner through the sale of a vessel shall result in no economic gain to the original licensee. Likewise, the purchaser of any interest in a vessel shall not pay any amount nor be liable for any cost or consideration of any kind to the original owner for the assignment of the berth or mooring into his/her name. Additionally, both the original licensee and purchaser shall sign a statement, under penalty of perjury, stating the total sales price of the vessel and affirming that no value has been exchanged between them for the berth or mooring assignment. The Harbormaster may require evidence in the form of an independent appraisal or comparable boat sales figures to verify the value of the vessel for which a license will be transferred. The Harbormaster has the authority to deny the transfer of a license should it be determined that the vessel’s value has been inflated by the value of the transferred berth or mooring license.
e.A licensee may acquire a second vessel in a second berth or mooring without invoking the rate increase described in subsection (a)(3) of this section, provided the original berth or mooring is released to the waiting list within 12 months of acquiring the second vessel. The original berth or mooring may not be transferred to another individual or entity with the sale of the original vessel, but must be returned to the City for reassignment to the waiting list. (Ord. 3548 § 2, 2016)