ADMINISTRATIVE REPORT

Date: February 8, 2000
Author/Local: S. Sayer/7149
RTS No. 01249

CC File No. 1757

CS&B: February 24, 2000

TO:	Standing Committee on City Services and Budgets
FROM:	Director of Finance
SUBJECT:	Heather Civic Marina 2000 Moorage Rates and Other Fees

RECOMMENDATION

A. THAT the 2000 moorage rates, other fees and boat lift fees at Heather Civic Marina be increased by 1.5%, reflecting a general inflationary increase. Proposed fees are outlined in Appendix III to be effective April 1, 2000.

B. THAT the proposed rate changes be posted at the Heather Civic Marina.

GENERAL MANAGER COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and B.

COUNCIL POLICY

Moorage rates at 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 2000.

BACKGROUND

The City of Vancouver owns two marinas, both situated in False Creek and managed by the Park Board. The Heather Civic Marina has 251 mooring berths, including 26 liveaboard berths, while the Burrard Civic Marina has moorage for 464 boats. Together, they account for over 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 March 11, 1999, Council approved a 1.5% increase for moorage rates and other fees at the Marina. Also at that time, Council requested that city inspectors carry out a coordinated inspection of the site to address concerns expressed by delegations. The inspection took place on March 16, 1999.

DISCUSSION

Moorage Fees

Moorage fees at 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 01, 2000 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 1.5% for 2000. This increase will bring the rates to $7.45 per foot per month (exclusive of GST) for recreational boaters, and $7.81 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

	Current Fee	Proposed Fee
General moorage	$7.34	$7.45
Liveaboard	$7.69	$7.81

The 1.5% increase is within recent fee increases which have tended to follow factors such as inflationary cost increases and moorage market conditions and is consistent with the recently approved rate increase at Burrard Marina for comparable moorage. Rates since 1996 have increased as follows:

Year	Increase
1996	2.0%
1997	4.5%
1998	1.5%
1999	1.5%
2000	1.5% - proposed

The proposed fee increase for 2000 ensures that Heather Marina covers cost increases for 2000 and is in keeping with comparable facilities in the area. A moorage fee of $7.45 per foot per month would be $0.47 greater than the Burrard Marina rate of $6.98 (before GST) for boats 22 ft. and over, and slightly less than the Spruce Harbour Marina rate and less than the rates for comparable moorage at the False Creek Yacht Club.

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

Appendix III provides a detailed breakdown of current and proposed rates and other fees.

Other Fees

The Heather Civic Marina has 26 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 be increased in 2000.

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. The use of electricity is available to recreational boaters and liveaboard boaters. It is recommended that these fees, including monthly parking for liveboard boaters be increased by 1.5%.

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 1.5%) 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. Overall, the Heather Marina boat lift rates are competitive and provide a level of service that is unique in the area.

Table 2. Heather Marina Boat Lift Fees

Service Provided	1999 Fees ($)	2000 Fees ($) - proposed
2 hr lift Members 2 hr lift Non-members	41.00 51.00	42.00 52.00	Rate/hour 21.00 26.00
5 hr lift Members 5 hr lift Non-members	81.00 102.00	82.00 102.00	16.40 20.80
Overnight Members+

Overnight Non-members+

+ 2:30 p.m. to 8:30 a.m.

Site Inspection of Heather Marina

Following Council's instruction for a report back on issues expressed by delegations at the March 11, 1999 Standing Committee on City Services and Budgets, a site inspection was conducted on Tuesday, March 16, 1999. The District Building, Plumbing and Electrical Inspectors together with the Fire Prevention Officer carried out a coordinated inspection of the site with one of the Marina patrons who had expressed concerns about the lack of water during winter months, poor electrical works and inadequate fire protection.

All issues that had to be addressed were completed as required by all city departments. Appendix IV contains the memo from the Manager, By-law Administration which outlines the findings of the inspection team. The Park Board's response is also attached for information.

In 1997, the Park Board commissioned two external consulting firms to do a complete review of the conditions of the marina facilities and systems. That review led to a Council report and the upgrading of the facilities, including the electrical system, has proceeded as suggested by the consultants. One of the conclusions at that time was that upgrading of the water system be deferred until replacement of the floats was necessary, which was estimated to be approximately 10 years away.

Upgrading of the electrical system was completed last year. In addition, other improvements and upgrades conducted in 1999 include painting of facility washrooms and laundry room, upgrading and painting of the office, installation of a new discharge system from liveaboards to docks, purchase of an additional powerwasher for customer usage and, for security and safety reasons, installation of a dock light at the base of the entry ramp. Also planned for the near future is the installation of an awning at the main gate and installation of an intercom system (for liveboards). In addition, credit card service will be available in 2000. Meanwhile, Park Board staff continue to investigate water systems that would provide year round service to all patrons.

CONCLUSION

This report recommends an increase to moorage rates and other fees and charges by 1.5% reflecting inflation and ensuring consistency with increases for comparable moorage at Burrard Civic Marina. As well, a site inspection was conducted and Park Board staff have addressed the concerns identified.

- - - - -

APPENDIX I

MARINA MOORAGE RATE COMPARISON - FEBRUARY 01, 2000

APPENDIX II

Historical Comparison of Moorage Rates+

Heather Civic Marina / Burrard Civic Marina

+ excluding GST

APPENDIX III

Summary of Proposed 2000 Heather Marina Fees

Notes:
1. No increase

APPENDIX IV ON FILE IN THE CITY CLERK'S OFFICE

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