Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

Director of Finance

SUBJECT:

Heather Civic Marina 1999 Moorage Rates and Other Fees

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

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 do 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.
PURPOSE

This report recommends adjustments to moorage and boat lift fees at Heather Civic Marina for 1999, as well as new and non-recurring expenditures for equipment purchases and painting.

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 Marina is an asset of the Property Endowment Fund (PEF), and is operated as a business rather than a public service. In service for 24 years, it contains 251 berths, which include 26 liveaboard berths. 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 are set annually by Council.

In March 1998, Council approved a 1.5% increase for moorage and other fees at the Marina. At this time, boat lift fees were adjusted to reflect market rates and Council also approved expenditures relating to electrical upgrades, repairs to the floats and other improvements.

DISCUSSION

Moorage Fees

Moorage fees at 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. In 1998, Heather Marina had, for the first time, five vacancies at the start of the boating year. Vacant moorage was sold later on in the season as transient moorage, indicating a relatively stable demand. Appendix I provides a comparison of rates as of November 1998, converted to reflect G.S.T. included, at various marinas in the area.

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 1.5% for 1999. This increase will bring the rates to $7.34 per foot per month (exclusive of GST) for recreational boaters, and $7.69 per foot per month (exclusive of GST) for boaters who liveaboard. Liveaboard rates are 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.

Appendix III provides a detailed breakdown of current and proposed rates and other fees.

The 1.5% increase is within recent fee increases which have tended to follow factors such as inflationary cost increases and moorage market conditions and is consistent with the recently approved rate increase at Burrard Marina. Rates since 1995 have increased as follows:

The proposed fee increase for 1999 ensures that Heather Marina covers cost increases for 1999 and is in keeping with comparable facilities in the area. A moorage fee of $7.34 per foot per month would be $0.46 greater than the Burrard Marina rate ($6.88), slightly greater than Spruce Harbour Marina rate and slightly less than the rates for comparable moorage at the False Creek Yacht Club.

A historical comparison of rates charged at Vancouver marinas is included as Appendix II. The difference in rates between Heather Marina and Burrard Marina reflect a generally superior facility at Heather Marina.

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 modest -about $16,000, or 2% of annual revenues.

Heather Marina's current and proposed boat lift fees, adjusted by 1.5%, 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 provided 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.

NNR REQUESTS

Park Board Staff have also prepared a request for new and non-recurring expenditures for 1999 totalling $14,600. A breakdown of expenditures as well as the reasons for their request are provided in Appendix IV.

CONCLUSION

This report recommends an overall 1.5% general fee increase reflecting inflation and ensuring consistency with increases at Burrard Marina. Staff have also prepared a request for NNR expenditures totalling $14,600.00.

APPENDIX II

Historical Comparison of Moorage Rates*

cs990311.htm

Heather Civic Marina/Burrard Civic Marina

 

Heather

Burrard

Difference

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
$6.51 - 22' and over

$0.97
$0.30

1997

$7.12

$5.94 - 21' and under
$6.64 - 22' and over

$1.18
$0.48

1998

$7.23

$6.03 - 21' and under
$6.78 - 22' and over

$1.20
$0.45

1999 - Proposed

$7.34

$6.12 - 21' and under
$6.88 - 22' and over

$1.22
$0.46

* excluding GST

APPENDIX III

Summary of Proposed 1999 Heather Marina Fees

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

* * * * *

cs990311.htm

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