SUPPORTS ITEM NO. 1
CS&B COMMITTEE AGENDA
FEBRUARY 22, 1996
ADMINISTRATIVE REPORT
Date: January 29, 1996
TO: Standing Committee on City Services and Budgets
FROM: Director of Finance
SUBJECT: Heather Civic Marina 1996 Moorage Rates
RECOMMENDATION
A. THAT the 1996 moorage fees at the Heather Civic Marina be
increased by 2.0% effective April 1, 1996.
B. THAT fees for transient moorage, electricity, and use of the
marine elevator at the Heather Civic Marina be increased by
3.0% effective April 1, 1996.
C. THAT the proposed rate changes be posted at the Heather
Civic Marina.
MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
A, B and C.
COUNCIL POLICY
Fees at the Heather Civic Marina are 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 1996.
BACKGROUND
The City of Vancouver owns two marinas, both situated in False Creek.
Both are managed by the Park Board. The Heather Civic Marina has 251
mooring berths and the Burrard Civic Marina has 481 mooring berths.
Together, they account for 50% of the moorage available in False
Creek.
The Heather Civic Marina is an asset of the Property Endowment Fund
(PEF). Fees charged at the Heather Civic Marina are used to cover
operating expenses with net income accruing to the PEF, providing a
return on its investment. Moorage and other fees are set annually by
Council.
MOORAGE FEES
Moorage fees at the Heather Civic Marina account for 90% of the
marina's revenue. These fees are established at levels reflective of
marina operating costs and the market for moorage in False Creek and
the lower mainland generally.
Based on a review of the budget expenditures and a review of the
market, the Director of Finance recommends that the moorage rates at
the Heather Civic Marina be increased by 2.0% for 1996. This increase
will bring rates to $6.81/ft./month (exclusive of GST) for
recreational boaters, and $7.15/ft./ month (exclusive of GST) for
boaters who live aboard. Live- aboard rates are 5% above general
moorage fees because they are paid on a monthly rather than on an
annual basis. The recommended increase is based on the following
factors.
- Operating costs are expected to increase by approximately 2% in
1996.
- It has been City policy that the Heather Civic Marina moorage rates
not lead the market. As a result, moorage fees have generally been
kept lower than the rates at the private marinas in False Creek. A
2% increase maintains this relationship. Appendix I provides a
comparison of rates.
- The Park Board approved a two-tier increase in moorage fees at
Burrard Marina. The general increase is 2% reflecting anticipated
cost increases. In addition, the Park Board has decided to impose
an additional 2% increase in moorage fees to cover the cost of
processing payments made by credit card. This additional amount
will be discounted to those who pay in full by cash or cheque. The
Director of Finance is recommending that this arrangement not be
extended to the Heather Civic Marina.
- Moorage market conditions have been positive, with low vacancy
rates and waiting lists for larger boats at the False Creek
marinas.
The Director of Finance does not recommend that the use of credit
cards be extended to the payment of moorage at the Heather Civic
Marina. For board owners, moorage represents a significant annual
expense which is payable in advance, in a single installment, and is
predictable from year to year. This payment is not like a normal
c o n s u m e r p u r c h a s e , w h e r e t h e C i t y
might otherwise offer alternative payment options. Utilizing credit
cards for these payments would impose a credit card fee of up to 2% on
the marina which must then be passed through to the boat owner. For a
30-foot berth, this additional charge would be about $53.
Under the proposed fee schedule, Heather's moorage fees will be
$0.30/ft./month greater than Burrard's. A historical comparison of
rates charged at the Burrard and Heather Civic Marinas is included in
Appendix II. Moorage rates at both marinas will remain below those at
other False Creek marinas and are consistent relative to other lower
mainland marinas.
OTHER FEES
The Director of Finance recommends adjustments to other fees and
charges at the Heather Civic Marina as follows:
- Live-Aboard Fee - The Heather Civic Marina has 26 live- aboard
berths which pay a surcharge of $26.50 per month (exclusive of
GST). This charge covers the costs of maintaining additional
facilities for live-aboards (telephone and electrical lines, sewage
system, laundry room, showers). (The 1996 operating budget request
includes $11,100 for facilities upgrades at the marina.) It is not
recommended that this fee be increased in 1996.
- Transient Moorage - Temporary moorage is offered by the day or by
the month when berths are available. Premium fees are charged for
this moorage, reflecting its short term duration. It is
recommended that these fees be increased by 3%.
- Use of Electricity - Live-aboard and recreational boaters pay for
electricity use at the marina. It is recommended these fees be
increased by 3%.
- Parking - Live-aboard boaters are charged $35.00 per month for
vehicle parking. It is not recommended that fees for parking be
increased in 1996.
- Elevator Fees - A marine elevator is available to lift boats out of
the water to perform maintenance. Boaters can either rent the
hoist by the hour (a short lift) or by the half day (a hoist). It
is proposed to increase these fees by 3%.
Recommended changes in these fees are summarized in Table 1.
Table 1 - Summary of 1996 Marina Fees
1995 Fee Proposed 1996 Proposed 1996
(excluding (excluding (including
Service GST) GST) GST)
Moorage Fees:
General $6.68/ft./mth $6.81/ft./mth $7.29/ft./mth
Live-aboard $7.01/ft./mth $7.51/ft./mth $7.65/ft./mth
Transient Moorage
Per Day $0.81/ft./day $0.84/ft./day $0.90/ft./day
Per Month $8.68/ft./mth $8.94/ft./mth $9.57/ft./mth
Use of Electricity:
Live-aboards $0.055/kw $0.057/kw $0.061/kw
Recreational Boaters $13.08/mth $13.47/mth $14.40/mth
Elevator Fees:
Short Lift
Members $30.66/use $31.78/use $34.00/use
Non-Members $35.77/use $36.45/use $39.00/use
Hoist
Members $61.32/use $63.55/use $68.00/use
Non-Members $71.54/use $73.83/use $79.00/use
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