SUPPORTS ITEM NO. 1
CS&B COMMITTEE AGENDA
MARCH 13, 1997
ADMINISTRATIVE REPORT
February 11, 1997
CC File No. 1755-1
TO: City Services and Budgets Committee
FROM: Director of Finance
SUBJECT: Heather Civic Marina 1997 Moorage Rates and Other Fees
RECOMMENDATIONS
A. THAT the 1997 moorage rates and other fees at Heather Civic Marina
be increased generally by 10.2%, and that parking and facility
surcharge fees for live-aboards be increased by 12.4%, all to be
effective April 1, 1997.
B. THAT the rate differential between members and non-members for boat
lift elevator fees be eliminated, and that the rates be increased
as discussed in this report.
C. THAT the proposed rate changes be posted at the Heather Civic
Marina.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of A,
B and C, noting that Recommendation A follows Council s instruction
to raise fees on City-run facilities to market levels in situations
where market comparisons exist.
Past City practice for pricing services at Heather Marina has
been to keep moorage rates and fees at that facility below the
prevailing rates at other marinas in close proximity. That
practice may have acted as a damper to restrain upward pricing
in other marinas, but arguably supply, demand and location are
the main factors that contribute to marina pricing in the False
Creek Basin.
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
not lead the market. On the other hand, Council has instructed staff
to bring the City s fees and charges up to market levels, where those
levels exist, and this report follows that instruction.
BACKGROUND
The City of Vancouver owns two marinas, Heather and Burrard, both
situated in False Creek. These marinas are managed by the Park Board
and together account for over 50% of the moorage available in False
Creek.
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. 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 reflect the marina s operating costs
and the market for moorage in False Creek and the Lower Mainland
generally. Appendix I provides a comparison of rates.
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 10.2%
for 1997. This increase will bring rates to $7.50 per foot per month
(exclusive of GST) for recreational boaters, and $7.90 per foot per
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 an annual basis.
The recommended increase is based on the following factors:
The increase brings moorage rates at Heather Civic Marina up to
market levels.
Moorage market conditions have been positive, with low vacancy
rates and waiting lists, especially for larger boats, at the False
Creek marinas.
Moorage rate increases for the past few years are as follows:
1994 2.0%
1995 2.2%
1996 2.0%
1997 1 0 . 2 %
proposed
As mentioned earlier, the proposed fee increase of 10.2% brings the
fees at Heather up to those of the other False Creek marinas. A
moorage fee of $7.50 per foot per month would be $0.86 greater than
Burrard s, $0.25 greater than Spruce Creek Marina s, and equivalent
to rates for comparable moorage at the False Creek Yacht Club.
A historical comparison of rates charged at both of the City s
marinas is included in Appendix II, noting that the Park Board set a
1997 rate increase of 1.5%-2.0% for moorage fees at the Burrard Civic
Marina late in 1996. The difference in the rates between Heather and
Burrard reflect a generally superior facility at Heather.
The full fee schedule for the 10.2% option is shown in Appendix III
at the end of this report.
BOAT LIFT ELEVATOR FEES
Since major repairs to the boat lift are underway, the proposed rates
for this service have been updated to better reflect rates of the
private operator in False Creek offering a comparable service (False
Creek Yacht Club). The fee differential between members and
non-members has also been removed.
Table 1 shows a comparison between Heather s rates and the False
Creek Yacht Club s rates for 1996 and the proposed rates for 1997.
Table 1 - Comparison of Boat Lift Elevator Fees
1996 False Creek Heather
Member Non-member
Flat Per Flat rate Per hour Per hour
2 hour $60.00 $30.00 $31.78 / $31.78 $36.45 1 hour
4 hours $80.00 $20.00 $63.55 / $12.71 $14.77 5 hours
8 hours $140.00 $17.50
overnight $130.00 $63.55 / overnight
*member / non-member rates
1997 False Creek Heather
Flat rate Per hour Flat rate Per hour
$40.00 $40.00 1 hour
2 hour $60.00 $30.00 $56.00 $28.00 2 hour
4 hours $80.00 $20.00 $86.00 $17.20 5 hours
8 hours $140.00 $17.50 $116.00 $14.50 8 hours
overnight $130.00 $105.00 overnight
Shorter-term fees (1-5 hours) are very close to market levels. The 8 hour and overnight rates have increased
substantially by up to 65% for members for an overnight lift (previously the 5 hour rate was charged for this
service). Staff suggest that full market rates be phased in through further adjustments in 1998.
FEE SCHEDULE
Appendix III shows updated fees for the marina where fees have generally been
increased by 10.2%. However, the fees to live-aboards for parking and the
facility surcharge (for use of facilities such as a laundry room and showers set
up for live-aboards) have been increased by 12.4% 2.0% for the 1996 increase and
10.2% for the 1997 increase since these fees were not adjusted in 1996.
* * * * *
Appendix I
Survey of Greater Vancouver Marina Moorage Rates - 1997
1996 1997 % change Vacancies
$/ft $/ft
False Creek:
Burrard Civic Marina 5.84 under 21 5.94 under 21 1.5%- Few
(481 berths) 2.0% 6.51 over 26 6.64 over 26
Heather Civic Marina 6.81 7.50 proposed 10.2% No
(251 berths)
False Creek Yacht Club 7.50 up to 36 7.50 up to 36 None No -
(85 berths) wait list 9.50 non-members 9.50 non-members
Granville Island Maritime Market 9.25 9.35 1.1% No
(300 berths)
Pelican Bay Marina 6.00 (winter) No change proposed Few
(33 berths) yet 10.00 (summer)
boats up to 27
Spruce Harbour Marina 7.25 - all sizes 7.25 - all sizes None No
(75 berths)
Outside False Creek:
Bayshore West 6.76 - No change proposed Some
(Coal Harbour) (200 berths) 8.48 yet
Mosquito Creek 4.55 - 4.58 - 0.7% - Few
(North Van) (523 berths) 6.05 6.20 2.5%
Skyline Marina 4.68 No change proposed Few
(Richmond) (375 berths) yet
Vancouver Marina 5.50 Considering a raise 4.5% Few
(Richmond) (240 berths) to 5.75
Thunderbird Marina 5.53 - 5.66 - 2.9% Wait list
(West Van) (860 berths) 9.05 9.38 avg. above 26
Note: All prices exclude the GST
Appendix II
Historical Comparison of Moorage Rates
Heather Civic Marina vs. Burrard Civic Marina
Heather Burrard Difference
1984 $4.62 $3.24 $0.71
1985 $4.90 $4.22 $0.68
1986 $5.05 $4.52 $0.53
1987 $5.22 $4.82 $0.40
1988 $5.45 $5.11 $0.34
1989 $5.60 $5.45 $0.15
1990 $5.85 $5.72 $0.13
1991 $6.13 $6.01 $0.12
1992 $6.13 $6.01 $0.12
1993 $6.41 $6.01 $0.40
1994 $6.54 $6.13 $0.41
1995 $6.68 $6.26 $0.42
1996 $6.81 $5.84 - 21 and under $0.97
$6.51 - 26 and over $0.30
1997 Proposed $7.50 $5.94 - 21 and under $1.56
$6.64 - 26 and over $0.86
Appendix III
Summary of Proposed 1997 Marina Fees
Proposed
1996 Fee 1997 Fee
excluding excluding
Service GST GST
Moorage Fees:
General moorage $6.81/ft./mth $7.50/ft./mth
Live-aboard moorage $7.15/ft./mth $7.90/ft./mth
Transient moorage:
per day $0.84/ft./day $0.93/ft./day
per month $8.94/ft./mth $9.85/ft./mth
Live-aboard Fees:
Live-aboard surcharge $26.50 / mth $29.80 / mth
Live-aboard parking $35.00 / mth $39.35 / mth
Use of Electricity:
Live-aboards $0.057 / kW $0.063/ kW
Recreational Boaters $13.47/mth $14.85/mth
Elevator Fees:
1 hour lift $31.78 / $36.45 $40.00
2 hour lift $56.00
5 hour lift $63.55 / $73.83 $86.00
8 hour lift $116.00
Overnight $63.55 / $73.83 $105.00