ADMINISTRATIVE REPORT

Date: February 13, 2003
Author/Local: E. Westmacott
Local 6509

RTS No. 03237
CC File No. 1757

                                    CS&B: February 27, 2003

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Corporate Services / Director of Finance

SUBJECT:

Heather Civic Marina 2003 Moorage Rates and Other Fees

 

RECOMMENDATION

POLICY

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 the period from April 1, 2003 to March 31, 2004.

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. The net income accrues to the PEF. Moorage and other fees and charges are set annually by Council.

On March 14, 2002, Council approved a 2.8% increase in moorage rates and other fees at the Marina.

DISCUSSION

1. 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 January 2003 at various marinas in the area.

Based on a review of budgeted 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 2.45% for 2003. This increase will bring the rates to $8.02 per foot per month (exclusive of GST) for recreational boaters, and $8.40 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

$7.83

$8.02

Liveaboard Moorage

$8.20

$8.40


The 2.45% increase is within the recent fee increases, which have tended to follow factors such as inflationary cost increases and moorage market conditions and is slightly less than the recent rate increase approved by the Park Board for the Burrard Marina. Since 1998, rates for the Heather Marina have increased as follows:

 

Year

Increase

  
 

1998

1.5%

  
 

1999

1.5%

  
 

2000

1.5%

  
 

2001

2.3%

  
 

2002

2.8%

  
 

2003

2.45%

- Proposed

The proposed cost increases for 2003 result in rates that are comparable with other facilities in the area. A general moorage fee of $8.02 per foot per month would be $0.31 greater than the rate at the Burrard Marina ($7.71 before GST, from April 1, 2003, for boats 22 ft. and over).

An 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 reflects a generally superior facility at the Heather Marina.

Temporary (transient) moorage is offered by the day 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 2.45%.

1. Other Fees

The Heather Civic Marina has 27 liveaboard berths that 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 and showers). It is recommended that this surcharge not change at this time.

The use of electricity is available to recreational boaters and liveaboard boaters. It is recommended that this charge not be changed at this time.

2. 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 services is fairly modest - less than 1% of annual revenues.

Heather Marina's current and proposed boat lift fees (adjusted by 2.45%) 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 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.

Service Provided

2002 Fees ($)

2003 Fees ($)

 

Rate/Hour

- proposed Rate/Hour

2 hr lift - Members

44.20

45.30

2 hr lift - Non-members

54.50

55.80

     

5 hr lift - Members

86.40

88.50

5 hr lift - Non-members

109.00

111.50

     

Overnight - Members **

118.00

121.00

Overnight - Non-members

146.00

149.50

Note: ** Overnight represents 2:30 pm to 8:30 am

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

NOTIFICATION TO INTERESTED PARTIES

Notification of the proposed changes in moorage rates and other fees at the Heather Civic Marina for 2003 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 2.45% to moorage rates and boat lift fees and charges at the Heather Marina to reflect anticpated cost increases.

- - - - -

APPENDIX 1

MARINA MOORAGE RATE COMPARISON - AS AT January, 2003

LOCATION

2003 RATES

% Change from 2002

Heather Civic Marina
- Vancouver

$8.02/ft./mo. (Recreational) (Proposed)
$8.40/ft./mo. (Liveaboard)

2.4%

2.4%

Burrard Civic Marina
- Vancouver

$6.78 /ft/mo. (21 ft. and under)
$7.71/ft/mo. (22 ft. and over)

4.3%
3.0%

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)

No Change

Spruce Harbour Marina
- Vancouver

$8.00/ft/mo. (all sizes)

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

No Change

Pelican Bay Marina
- Vancouver

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

2003 rates not known

Mosquito Creek Marina
- North Vancouver

$7.43/ft/mo. (24 ft) (2002)
$7.76/ft/mo. (26 ft) (2002)
$8.32/ft/mo. (30 ft) (2002)

2003 Rates not known yet

Thunderbird Marina
- West Vancouver

$6.79/ft/mo. (21 ft.)
$8.52/ft/mo. (26 ft.)
$9.54/ft/mo. (30 ft.)
5% discount allowed if paid in full before March 15

4%
3%
4%

Note: * all rates exclude GST

APPENDIX II

Historical Comparison of Moorage Rates**

 

Heather

Burrard

Difference

Percentage (1)

1987

$5.22

$4.82

$0.40

8.3%

1988

$5.45

$5.11

$0.34

6.7%

1989

$5.60

$5.45

$0.15

2.8%

1990

$5.85

$5.72

$0.13

2.3%

1991

$6.13

$6.01

$0.12

2.0%

1992

$6.13

$6.01

$0.12

2.0%

1993

$6.41

$6.01

$0.40

6.7%

1994

$6.54

$6.13

$0.41

6.7%

1995

$6.68

$6.26

$0.42

6.7%

1996

$6.81

$6.51 - 22' and over

$0.30

4.6%

1997

$7.12

$6.64 - 22' and over

$0.48

7.2%

1998

$7.23

$6.78 - 22' and over

$0.45

6.6%

1999

$7.34

$6.88 - 22' and over

$0.46

6.7%

2000

$7.45

$6.98 - 22' and over

$0.47

6.7%

2001

$7.62

$7.24 - 22' and over

$0.38

5.2%

2002

$7.83

$7.47 - 22' and over

$0.35

4.7%

2003 - Proposed

$8.02

$7.71 - 22' and over

$0.31

4.0%

** - $ per foot per month excluding GST

(1) - Difference as a percentage of Burrard Marina Rates

APPENDIX III

Summary of Proposed 2003 Heather Marina Fees

Service

2002 Fee, Excluding GST

2003 Fee, Excluding GST

Moorage Fees:

    

General Moorage

$7.83

$8.02/ft./month

Liveaboard Moorage

$8.20

$8.40/ft./month

Transient Moorage

$0.96

$0.98/ft./day

     

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

     

Boat Lift Elevator Fees:

    

2 hr - Member

$44.20

$45.30

2 hr - Non-Member

$54.50

$55.80

5 hr - Member

$86.40

$88.50

5 hr - Non-Member

$109.00

$111.50

Overnight - Member

$118.00

$121.00

Overnight - Non-Member

$146.00

$149.50

Note: ** No Increase Recommended

* * * * *

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