Heather Civic Marina 2002 Moorage Rates

ADMINISTRATIVE REPORT

Date: March 1, 2002
Author/Local:E. Westmacott/6509

RTS No. 02560

CC File No. 1757 CS&B: March 14, 2002

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Corporate Services /
Director of Finance

SUBJECT:

Heather Civic Marina 2002 Moorage Rates and Other Fees

RECOMMENDATION

THAT the 2002 moorage rates and boat lift fees at the Heather Civic Marina be increased by 2.8%, reflecting an increase in anticipated expenses. Proposed fees are outlined in Appendix III of the Manager's Report dated March 1, 2002, to be effective April 1, 2002.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Moorage rates at the Heather Civic Marina have been adjusted annually to reflect cost increases and current market conditions. It has been City policy that the Heather Civic Marina moorage rates reflect but do not lead the market.

PURPOSE

The purpose of this report is to seek Council approval of moorage rates and other fees and charges at the Heather Civic Marina for 2002.

BACKGROUND

The City of Vancouver owns two marinas, both situated in False Creek and managed by the Park Board. The Heather Civic Marina has 252 mooring berths, including 27 liveaboard berths, while the Burrard Civic Marina has moorage for 471 boats. Together, they account for approximately 50% of the available moorage in False Creek.

Heather Marina is an asset of the Property Endowment Fund (PEF), and is operated as a business rather than a public service. Moorage and other fees are generally set at or near market levels such that operating expenses are covered and the net income accrues to the PEF. Moorage and other fees and charges are set annually by Council.

On February 22, 2001, Council approved a 2.3% increase for moorage rates and other fees at the Marina.

DISCUSSION

Moorage Fees

Moorage fees at the Heather Civic Marina account for about 90% of the marina's revenues. These fees reflect the marina's operating costs as well as the market for moorage in False Creek and the Greater Vancouver area. Appendix I provides a comparison of rates as of February 2002 at various marinas in the area.

Based on a review of the budget expenditures, a review of the market and previous pricing policy, the Director of Finance recommends that the moorage rates at the Heather Civic Marina be increased by 2.8% for 2002. This increase will bring the rates to $7.83 per foot per month (exclusive of GST) for recreational boaters, and $8.20 per foot per month (exclusive of GST) for liveaboard moorage. Liveaboard rates are approximately 5% above general moorage fees because they are paid on a monthly rather than a prepaid annual basis.

The following table summarizes the current and proposed rates.

Table 1. Heather Marina Moorage Rates - Per foot, per month.

Current Fee

Proposed Fee

General moorage

$7.62

$7.83

Liveaboard

$7.98

$8.20

The 2.8% increase is within recent fee increases which have tended to follow factors such as inflationary cost increases and moorage market conditions and is comparable to the recent rate increase approved by the Park Board for the Burrard Marina. Since 1996, rates for the Heather Marina have increased as follows:

Year

Increase

1996

2.0%

1997

4.5%

1998

1.5%

1999

1.5%

2000

1.5%

2001
2002

2.3%
2.8% - proposed

The proposed fee increase for 2002 ensures that the Heather Marina covers cost increases for 2002 and is in keeping with comparable facilities in the area. A general moorage fee of $7.83 per foot per month would be $0.35 greater than the rate at the Burrard Marina ($7.48 before GST, from 1 April 2002, for boats 22ft and over) and would retain the market differential between the Heather Marina and rates for comparable moorage at private facilities.

A historical comparison of rates charged at the City's two Civic marinas is included as Appendix II. The difference in rates between the Heather Marina and the Burrard Marina reflect a generally superior facility at the Heather Marina.

Temporary (Transient) moorage is offered by the day or by the month when berths are available. Transient fees are charged at a premium to reflect the short term duration. It is recommended that these fees be increased by 2.8%.

Other Fees

The Heather Civic Marina has 27 liveaboard berths which pay a surcharge of $26.50 per month (exclusive of GST). This charge covers the costs of maintaining additional facilities for liveaboards (telephone and electrical lines, sewage system, laundry room, showers). It is not recommended that this fee, nor that for monthly parking for liveaboard boat owners, be increased in 2002.

The use of electricity is available to recreational boaters and liveaboard boaters. No adjustment to the rate for use of electricity is proposed for 2002.

Boat Lift Elevator Fees

Heather Marina offers a boat lift service so that boat owners can lift their boats out of the water to undertake repairs and maintenance. The annual revenue for this service is fairly modest - less than 2% of annual revenues.

Heather Marina's current and proposed boat lift fees (adjusted by 2.8%) are summarized in Table 2. Heather Marina offers a rate schedule that is economical for those boat owners that need short-term lifts. Rates per hour are also presented for illustrative purposes, while overnight charges are based on an 18-hour duration. Overall, the Heather Marina boat lift rates are competitive and provide a level of service that is unique in the area. No such service is available at the Burrard Marina.

Table 2. Heather Marina Boat Lift Fees

Service Provided

2001 Fees ($)

2002 Fees ($) - proposed

2 hr lift Members
2 hr lift Non-members

43.00
53.00

44.20
54.50

Rate/hour
22.10
27.25

5 hr lift Members
5 hr lift Non-members

84.00
106.00

86.40
109.00

17.28
21.80

Overnight Members*

Overnight Non-members

2001 fees
115.00
142.00

2002 fees
118.00
146.00

Rate/hr
6.56
8.11

Note: * Overnight 2.30 pm to 8.30 am

Appendix III provides a detailed breakdown of current and proposed rates and other fees for the Heather Marina.

NOTIFICATION TO INTERESTED PARTIES

Notification of the proposed changes in moorage rates and other fees at the Heather Civic Marina for 2002 and the date upon which the matter will be considered by the Standing Committee has been posted at the Marina.

CONCLUSION

This report recommends a general fee increase of 2.8% to moorage rates and other fees and charges at the Heather Marina to reflect local inflation and ensuring consistency with increases for comparable moorage at the Burrard Civic Marina.

* * * * *

APPENDIX I

MARINA MOORAGE RATE COMPARISON - AS AT FEBRUARY , 2002

LOCATION

RATE

Heather Civic Marina
- Vancouver

$7.62/ft./mo. (Recreational) (2001Rates)
$7.98/ft./mo. (Liveaboard)

Burrard Civic Marina
- Vancouver

$6.75ft/mo. (21 ft. and under) (2001 Rates)
$6.98/ft/mo. (22 ft. and over)

False Creek Marina
- Vancouver

Members only:
$8.00/ft/mo. (36 ft. and under)
$8.50/ft./mo. (over 36 ft.)

$0.80/ft/day +electricity (Transient)

Liveaboards: pay member moorage rates + 100.00/mo. + license fee + membership fee (presently $3,000)

Spruce Harbour Marina
- Vancouver

$8.00/ft/mo. (all sizes)

Liveaboard: $5.15/ft/mo. + license fee + Co-op (presently $41,783.00)

Pelican Bay Marina
- Vancouver

$11.00/ft/mo. (46 ft. and under)
$8,500.00/yr. (over 46 ft.to 65 ft.)

Mosquito Creek Marina
- North Vancouver

$7.43/ft/mo. (24 ft)
$7.76/ft/mo. (26 ft)
$8.32/ft/mo. (30 ft)

Thunderbird Marina
- West Vancouver

$6.66/ft/mo. (21 ft.)
$8.27/ft/mo. (26 ft.)
$9.17/ft/mo. (30 ft.)
5% discount allowed if paid in full before March 15

Note: * all rates exclude GST

APPENDIX II

Historical Comparison of Moorage Rates*

Heather Civic Marina / Burrard Civic Marina

Heather

Burrard

Difference

1987

$5.22

$4.82

$0.40

1988

$5.45

$5.11

$0.34

1989

$5.60

$5.45

$0.15

1990

$5.85

$5.72

$0.13

1991

$6.13

$6.01

$0.12

1992

$6.13

$6.01

$0.12

1993

$6.41

$6.01

$0.40

1994

$6.54

$6.13

$0.41

1995

$6.68

$6.26

$0.42

1996

$6.81

$6.51 - 22' and over

$0.30

1997

$7.12

$6.64 - 22' and over

$0.48

1998

$7.23

$6.78 - 22' and over

$0.45

1999

$7.34

$6.88 - 22' and over

$0.46

2000

$7.45

$6.98 - 22' and over

$0.47

2001

$7.62

$7.24 - 22' and over

$0.38

2002 - Proposed

$7.83

$7.48 - 22' and over

$0.35

* excluding GST

APPENDIX III

Summary of Proposed 2002 Heather Marina Fees

2001 Fee
excluding
GST

2002 Fee
excluding
GST

Service

Moorage Fees:

General moorage

$7.62

$7.83

/ft/month

Liveaboard moorage

$7.98

$8.20

/ft/month

Transient moorage:

per day

$0.93

$0.96

/ft/day

per month

$9.98

$10.25

/ft/month

Liveaboard fees:

Liveaboard surcharge *

$26.50

$26.50

/month

Liveaboard parking *

$38.26

$38.26

/month

Use of Electricity:

Liveaboards *

$0.63

$0.63

/KW

Recreational boaters (15 amp)*

$15.12

$15.12

/month

Recreational boaters (30 amp)*

$30.25

$30.25

/month

Elevator Fees:

2 hr member

$43.00

$44.20

2 hr non-member

$53.00

$54.50

5 hr member

$84.00

$86.40

5 hr non-member

$106.00

$109.00

Overnight member

$115.00

$118.00

Overnight non-member

$142.00

$146.00

Note: * No increase recommended.

Comments or questions? You can send us email.


Service Provided	2001 Fees ($)	2002 Fees ($) - proposed
2 hr lift Members 2 hr lift Non-members	43.00 53.00	44.20 54.50	Rate/hour 22.10 27.25
5 hr lift Members 5 hr lift Non-members	84.00 106.00	86.40 109.00	17.28 21.80
Overnight Members* Overnight Non-members	2001 fees 115.00 142.00	2002 fees 118.00 146.00	Rate/hr 6.56 8.11


TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Corporate Services / Director of Finance
SUBJECT:	Heather Civic Marina 2002 Moorage Rates and Other Fees

	Current Fee	Proposed Fee
General moorage	$7.62	$7.83
Liveaboard	$7.98	$8.20

Year	Increase
1996	2.0%
1997	4.5%
1998	1.5%
1999	1.5%
2000	1.5%
2001 2002	2.3% 2.8% - proposed

LOCATION	RATE
Heather Civic Marina - Vancouver	$7.62/ft./mo. (Recreational) (2001Rates) $7.98/ft./mo. (Liveaboard)
Burrard Civic Marina - Vancouver	$6.75ft/mo. (21 ft. and under) (2001 Rates) $6.98/ft/mo. (22 ft. and over)
False Creek Marina - Vancouver	Members only: $8.00/ft/mo. (36 ft. and under) $8.50/ft./mo. (over 36 ft.) $0.80/ft/day +electricity (Transient) Liveaboards: pay member moorage rates + 100.00/mo. + license fee + membership fee (presently $3,000)
Spruce Harbour Marina - Vancouver	$8.00/ft/mo. (all sizes) Liveaboard: $5.15/ft/mo. + license fee + Co-op (presently $41,783.00)
Pelican Bay Marina - Vancouver	$11.00/ft/mo. (46 ft. and under) $8,500.00/yr. (over 46 ft.to 65 ft.)
Mosquito Creek Marina - North Vancouver	$7.43/ft/mo. (24 ft) $7.76/ft/mo. (26 ft) $8.32/ft/mo. (30 ft)
Thunderbird Marina - West Vancouver	$6.66/ft/mo. (21 ft.) $8.27/ft/mo. (26 ft.) $9.17/ft/mo. (30 ft.) 5% discount allowed if paid in full before March 15

	Heather	Burrard	Difference
1987	$5.22	$4.82	$0.40
1988	$5.45	$5.11	$0.34
1989	$5.60	$5.45	$0.15
1990	$5.85	$5.72	$0.13
1991	$6.13	$6.01	$0.12
1992	$6.13	$6.01	$0.12
1993	$6.41	$6.01	$0.40
1994	$6.54	$6.13	$0.41
1995	$6.68	$6.26	$0.42
1996	$6.81	$6.51 - 22' and over	$0.30
1997	$7.12	$6.64 - 22' and over	$0.48
1998	$7.23	$6.78 - 22' and over	$0.45
1999	$7.34	$6.88 - 22' and over	$0.46
2000	$7.45	$6.98 - 22' and over	$0.47
2001	$7.62	$7.24 - 22' and over	$0.38
2002 - Proposed	$7.83	$7.48 - 22' and over	$0.35


		2001 Fee excluding GST	2002 Fee excluding GST

Service

Moorage Fees:
	General moorage	$7.62	$7.83	/ft/month
	Liveaboard moorage	$7.98	$8.20	/ft/month
	Transient moorage:
	per day	$0.93	$0.96	/ft/day
	per month	$9.98	$10.25	/ft/month

Liveaboard fees:
	Liveaboard surcharge *	$26.50	$26.50	/month
	Liveaboard parking *	$38.26	$38.26	/month

Use of Electricity:
	Liveaboards *	$0.63	$0.63	/KW
	Recreational boaters (15 amp)*	$15.12	$15.12	/month
	Recreational boaters (30 amp)*	$30.25	$30.25	/month

Elevator Fees:
	2 hr member	$43.00	$44.20
	2 hr non-member	$53.00	$54.50
	5 hr member	$84.00	$86.40
	5 hr non-member	$106.00	$109.00
	Overnight member	$115.00	$118.00
	Overnight non-member	$142.00	$146.00