|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
January 19, 2005 | |
Author: |
Liz Jones | |
Phone No.: |
604-871-6169 | |
RTS No.: |
04832 | |
CC File No.: |
1757 | |
Meeting Date: |
February 17, 2005 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
General Manager of Corporate Services / Director of Finance |
SUBJECT: |
Heather Civic Marina 2005 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, 2005, 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, 2005 to March 31, 2006.
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 26, 2004, Council approved a 3.0% 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 2.5% for 2005, and other costs, the Director of Finance recommends that the moorage rates at the Heather Civic Marina be increased by 3.0% for 2005. 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 |
$8.26 |
$8.50 |
Liveaboard Moorage |
$8.65 |
$8.90 |
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 2005 at various marinas in the area.
The increase is smaller than 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 $8.90 per foot per month would be $0.15 greater than the rate at Burrard Marina ($8.75 before GST, from April 1, 2005, 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%.
Appendix B provides a detailed breakdown of current and proposed rates and other fees for Heather Civic Marina.
2. Boat Lift Elevator Fees
The boat lift elevator at Heather Marina was decommissioned and removed in 2004 based on recommendations in the March 30, 2004 feasibility study completed by SCK SIU Engineering Limited.
Marina Staff are considering options for using the space previously occupied by the boat lift elevator. In the meantime, if zoning permits, the space will be used to create one additional liveaboard berth while these options are being considered.
NOTIFICATION TO INTERESTED PARTIES
Notification of the proposed changes in moorage rates and other fees at the Heather Civic Marina for 2005 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.
* * * * *
