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CITY OF VANCOUVER
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Date: |
January 21, 2004 | |
Author: |
Liz Jones | |
Phone No.: |
604-871-6169 | |
RTS No.: |
03930 | |
CC File No.: |
1757 | |
Meeting Date: |
February 26, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
General Manager of Corporate Services / Director of Finance |
SUBJECT: |
Heather Civic Marina 2004 Moorage Rates and Other Fees |
RECOMMENDATION
THAT the moorage rates and boat lift fees at the Heather Civic Marina be increased by 3.0% effective April 1, 2004, as detailed in Appendix B, reflecting adjustments for market conditions and for inflationary increases in anticipated expenses.
COUNCIL POLICY
It has been City policy that the Heather Civic Marina moorage rates reflect but do not lead the local market.
Moorage rates at the Heather Civic marina have been adjusted annually to reflect cost increases and current market conditions.
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, 2004 to March 31, 2005.
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.
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 27, 2003, Council approved a 2.45% 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, the balance coming from other fees. Moorage fees reflect the marina's operating costs as well as the market for moorage in False Creek and the Greater Vancouver area.
Based on a review of budgeted expenditures for the marina, including wage increases of 5.0% (2.5% each year for 2003 and 2004), and other costs, the Director of Finance recommends that the moorage rates at the Heather Civic Marina be increased by 3.0% for 2004. 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 |
$8.02 |
$8.26 |
Liveaboard Moorage |
$8.40 |
$8.65 |
The liveaboard moorage fee includes a 5% surcharge reflecting the cost of the monthly payment option available to owners who live aboard their boats. Liveaboard boat owners who pay their annual moorage in advance can avoid the surcharge reflected in these fees.
The 3.0% increase also keeps the moorage rate at Heather comparable with other facilities in the area. Appendix A provides a comparison of rates as of January 2004 at various marinas in the area.
The increase is also consistent with the recent rate increase approved by the Park Board for the Burrard Marina. The difference in rates between the two City marinas reflects a generally superior facility at Heather Marina. A general moorage fee of $8.26 per foot per month would be $0.32 greater than the rate at Burrard Marina ($7.94 before GST, from April 1, 2004, for boats 22 ft. and over).
Temporary (transient) moorage is offered by the day when berths are available. Transient fees are charged at a premium to reflect the short term duration. It is recommended that these fees increase by 3.0%.
2. Boat Lift Elevator Fees
Heather Marina offers a boat lift service so that boat owners can lift their boats out of the water to undertake repairs and maintenance. The annual revenue for this service is fairly modest - less than 1% of annual revenues.
Heather Marina offers a rate schedule that is economical for those boat owners that need short term lifts. Rates per hour are presented for illustrative purposes since few lifts can be completed in an hour, while overnight charges are based on an 18-hour lift cycle. Overall, the Heather Marina boat lift rates are competitive and provide a level of service that is unique in the area. No such service is available at the Burrard Marina. The current and proposed boat lift fees (adjusted by 3.0%) for Heather Marina are summarized in Table 2.
Table 2. Heather Marina Boat Lift Fees
2003 Fees ($) |
2004 Fees ($) | |
Service Provided |
Rate/Hour |
Proposed Rate/Hour |
2 hr lift - Heather Marina Patrons |
45.30 |
46.66 |
2 hr lift - Others |
55.80 |
57.47 |
5 hr lift - Heather Marina Patrons |
88.50 |
91.15 |
5 hr lift - Others |
111.50 |
115.84 |
Overnight Heather Marina Patrons ** |
121.00 |
125.63 |
Overnight - Others |
149.50 |
153.98 |
**Note: Overnight represents 2:30 pm to 8:30 am
Appendix B provides a detailed breakdown of current and proposed rates and other fees for Heather Civic Marina.
NOTIFICATION TO INTERETED PARTIES
Notification of the proposed changes in moorage rates and other fees at the Heather Civic Marina for 2004 and the date upon which the increase will be considered by the Standing Committee has been posted at the Marina.
CONCLUSION
This report recommends a general fee increase of 3.0% to moorage rates and other fees and charges at the Heather Marina to reflect anticipated cost increases.
* * * * *
APPENDIX A
PAGE 1 OF 1
MARINA MOORAGE RATE COMPARISON - AS AT JANUARY 2004
LOCATION |
2004 RATES* |
% CHANGE FROM 2003 |
Heather Civic Marina - Vancouver |
$8.26/ft/month (Recreational) (proposed)
|
3.0%
|
Burrard Civic Marina - Vancouver |
$7.01/ft/month (21 ft. and under)
|
3.4%
|
Coal Harbour Marina |
$9.59/ft/month (30 ft. and under)
|
1.5%
|
False Creek Marina - Vancouver |
Members only:
$0.75/ft/day + $5.00/day utility (Members - Temporary Moorage) $1.50/ft/day + $5.00/day utility (Non-Members - Temporary Moorage) Liveaboards: pay member moorage rates + $100/month + $600 (annual fee) + $5,000 (one time initiation fee) |
No change |
Spruce Harbour Marina - Vancouver |
2003 Recreational: $8.00/ft/mo. (all sizes) 2003 Liveaboard: $5.15/ft/mo. + $41,783 (license and Co-op fee) |
2004 rates not yet determined |
Pelican Bay Marina - Vancouver |
$12.00/ft/month (46 ft. and under)
|
9.0%
|
Mosquito Creek Marina - North Vancouver |
$8.86/ft/month (24 feet)
|
17.8%
|
Thunderbird Marina - West Vancouver |
$6.93/ft/month (21 ft.)
|
2.1%
|
Note:* All rates exclude GST
APPENDIX B
PAGE 1 OF 1
Summary of Proposed 2004 Heather Marina Fees
|
Service |
2003 Fee,
|
2004 Fee,
|
Moorage Fees:1 |
||
General Moorage |
$8.02/ft/month |
$8.26/ft/month |
Liveaboard Moorage |
$8.40/ft/month |
$8.65/ft/month |
Transient Moorage |
$0.98/ft/day |
$1.00/ft/day |
Liveaboard Fees:2 |
||
Liveaboard Surcharge |
$26.50/month |
$26.50/month |
Liveaboard Parking |
$38.26/month |
$38.26/month |
Use of Electricity:2 |
||
Liveaboards |
$0.63/KW |
$0.63/KW |
Recreational Boaters (15 amp) |
$15.12/month |
$15.12/month |
Recreational Boaters (30 amp) |
$30.25/month |
$30.25/month |
Elevator Fees: |
||
2 hr - Member |
$ 45.30 |
$ 46.66 |
2 hr - Non-Member |
$ 55.80 |
$ 57.47 |
5 hr - Member |
$ 88.50 |
$ 91.15 |
5 hr - Non-Member |
$111.50 |
$114.84 |
Overnight - Member |
$121.00 |
$124.63 |
Overnight - Non-Member |
$149.50 |
$153.98 |
1. fee based on longer of boat or berth length
2. no increase recommended
