Office of the City Manager ACTION CALENDAR May 17, 2011 To: Honorable Mayor and Members of the City Council From: Phil Kamlarz, City Manager Submitted by: William Rogers, Director, Parks Recreation & Waterfront Subject: Fees: Marina Fee Increases for FY 2012 RECOMMENDATION Conduct a public hearing and upon conclusion, adopt a Resolution: 1) Establishing a new rate schedule in the Marina increasing berth and skiff fees by up to 6.7%; 2) Increasing Houseboat Live Aboard fees by 20% ($20); 3) Increasing Monthly and Seasonal Small Boat Launch Ramp Fees by 20% ($5); 4) Eliminating the Waiting List Fee; 5) Establishing a special rate for limited access berths; 6) Establishing new fees for Food and Merchandise Booths ; 7) Establishing new discounts for Multiple Berth Rental; and 8) Rescinding Resolution No.64,457-N.S. FISCAL IMPACTS OF RECOMMENDATION The Berkeley Marina is funded entirely from revenues collected from berth fees and business leases. The Marina Fund finances all activities at the Waterfront, including dock operations and maintenance, educational programs, parks (Cesar Chavez and Shorebird), and landscaping and capital improvements. In FY 2012, the Marina Fund expenditures are projected to increase by 7.6% or $402,388. The Parks Recreation and Waterfront Department did not recommend Marina Fee increases in FY 2011. In order to keep up with the increase in operating costs, it is necessary to increase revenues by raising fees. The primary factors contributing to the increase in expenditures at the Berkeley Marina are the following: Wage increases of 2% in FY 2011, with an additional 2.5% planned for FY 2012 were approved as part of the negotiated labor contracts and account for about $136,500 in increased costs. An anticipated increase in CalPERS costs of 4.2% over the next 2 years; Utility costs are anticipated to increase by about 12% or $33,000. 2180 Milvia Street, Berkeley, CA 94704 Tel: (510) 981-7000 TDD: (510) 981-6903 Fax: (510) 981-7099 E-Mail: manager@cityofberkeley.info Website: http://www.cityofberkeley.info/manager
Marina Fee Increases for FY 2012 ACTION CALENDAR May 17, 2011 The current debt service will increase by about $327,000 as the City begins to pay for full principal and interests of the total $9 million loan from the Department of Boating and Waterways for the rebuilding of docks H & I and B & C docks. Several other factors support an increase to berth fees and other specific fees. There was no berth rate fee increase in FY 2011, despite increased expenses in FY 2011. (The most recent fee increase in berth rates at the Marina was in FY 2010 with Resolution No. 64,457-N.S.) The State of California Department of Boating and Waterways requires that berth fees stay within the average in the area and, at a minimum, increase at the region s CPI. In February 2011, City staff conducted the Annual Survey of Bay Area Marinas, and concluded that with the proposed increase, Berkeley Marina s rates will be on par with the average of other Marinas offering similar service and amenities, especially those located near the Central Bay. (See Attachment 2 - Survey of Bay Area Marina Rates (February 2011). Staff anticipates that an increase in berth rates will not affect the occupancy rate negatively at the Marina because there are no new marinas opening in the area and there are limited alternative berthing options in the Central Bay Area. A more detailed explanation of increased costs to the Marina is provided below. The following chart provides a comparison of the FY 2011 projected and FY 2012 proposed revenue and expenditures for the Marina Fund. The proposed fee increases do not cover the total cost of operations. In FY 2012, a total of $233,828 in new revenue will be comprised of $192,120 from the increase in Marina fees and $41,708 from non-fee revenue (increases in payments from Leases, Licenses and interest). While this reduces the annual operating deficit, it does not fully cover all operating costs. The Marina Fund balance will be used to cover the anticipated $634,291 shortfall in FY 2012, and if needed, capital repair and replacement projects will be reduced or eliminated. Projected FY 2011 Proposed FY 2012 Change Total Revenues 4,767,744 5,001,572 233,828 Total Expenditures 5,233,475 5,635,863 402,388 Annual Deficit (465,731) (634,291) Description of Policy and Fee Increases Berth fees are the single largest source of revenue for the Marina, followed by licenses and leases, which are fixed until at least 2014. The proposed fee increases for FY 2012 will generate a new net of $192,120 in incremental annual revenue for FY 2012. Page 2
Marina Fee Increases for FY 2012 ACTION CALENDAR May 17, 2011 1) Berth Fees. A 6% fee increase for berths will contribute $188,800 in new annual revenue over the FY 2010 projected revenues, 2) Limited Access Berth Rate. There are 8 berths in the Marina that are difficult to enter and exit due to their narrow configuration. The current method of calculating the rate for these berths is to base it on the length of the boat or the size of the berth, whichever is larger. The Marina is proposing a special rate that would allow a customer to place smaller vessels in these berths and calculate the rate based on the vessels length over all regardless of the berth length. 3) Houseboat Live Aboard Fee. The Marina has 13 permitted houseboats located on H dock. All live-aboard berthers in the Marina (the 13 houseboats and approximately 90 live aboard boats) currently pay a monthly fee of $145 to offset the cost of increased use of refuse service, water and restroom facilities. The houseboats require the additional cost of permanent sewer connections. The Marina pays these annual sewer fees to East Bay Municipal Utility District on behalf houseboats in the amount of $3,600 per year. The proposed $20.00 fee increase will offset $3,120 of the charges. The Live Aboard Fee for boats will remain unchanged at $145 per month. A $20.00 per month increase in Houseboat Live-aboard fees will contribute $3,120 in new annual revenue. 4) Small Boat Launch Ramp Monthly and Seasonal Fees. The current fee to use the Berkeley Marina Launch Ramp is $15.00 per day. In order to encourage its usage, the Marina offers seasonal and monthly passes. Two years ago when the daily fee was raised, the monthly and seasonal pass fees were not adjusted. Increasing these fees will better align the seasonal and monthly passes with the new daily use fee. The increases in Launch Ramp monthly and seasonal fees will contribute $1,000 in new annual revenue. 5) Waiting List Fee. Historically, the Marina has charged a waiting list fee for a berth, or for a live aboard space. The purpose of the fee has been to offset the cost to maintain and update the list. In order to encourage new tenants, the Department will eliminate this fee. 6) Food and Merchandise Booth Fees. Although there is currently no plan to rent space for Food or Merchandise Booths at Marina-sponsored events, this is something the Department has considered in the past and may implement in the future. A fee of $100 for Merchandise booth and $500 for a food booth is proposed. 7) Multiple Berth Rental Incentive. The Marina will offer progressive base rate reductions between 10% and 30%, depending on the number of berths rented, for organizations and individuals who rent multiple berths in the Marina. The incentive is intended to encourage sailing schools, boat brokers, and potential America s Cup organizations to base their operations at the Berkeley Marina. Page 3
Marina Fee Increases for FY 2012 ACTION CALENDAR May 17, 2011 CURRENT SITUATION AND ITS EFFECTS The General Fund does not allocate funds to the operation of the Berkeley Marina as it is 100% self-funded through Marina Enterprise Fund revenues from berth fees and leases. These funds finance all activities in the Marina, including capital improvements. Due to projected increases in expenditures at the Berkeley Marina in FY 2010, there is a need for additional revenue to cover costs. BACKGROUND The fee increase for FY 2010 was discussed at two Waterfront Commission meetings the Waterfront Commission Subcommittee meeting on March 2, 2011 and again at the regular meeting of the Waterfront Commission on March 9, 2011. Berthers were notified of the two meetings and were provided an opportunity to address the topic. At its meeting of April 9, 2011, the Waterfront Commission motioned to recommend to the City Council that the proposed fee increases for Fiscal Year 2012 be adopted as proposed. Moved, seconded, carried (Catalfo/Beier; Ayes Beier, Catalfo, McKay, McGrath; Nayes none; Recused Kamen). CONTACT PERSON John Mann, Waterfront Manager, 510-981-6737 Attachments: 1: Proposed Marina Rates for FY 2012 2: Survey of Bay Area Marina Rates 3: Resolution 4: Public Hearing Notice Page 4
Proposed Marina Rates for FY 2012 Attachment 1 Monthly Base Berth Rate FY 2010 FY 2012 % Increase per foot 25 feet to 29 feet $8.20 / Ft $8.69/ Ft 6% 30 feet to 39 feet $8.68 / Ft $9.20 / Ft 6% 40 feet to 49 feet $9.20 / Ft $8.75 / Ft 6% 50 feet to 59 feet $9.75 / Ft $10.33 / Ft 6% 60 feet to 69 feet $10.35 / Ft $10.97 / Ft 6% 70 feet to 79 feet $10.95 / Ft $11.60 / Ft 6% 80 feet to 89 feet $11.60 / Ft $12.29 / Ft 6% Limited Access Berth * Length x Rate New Fee Wait List Fees $40.00 $0 Skiffs (Side ties < 20 Feet) $75.00 / Mo. $80.00 / Mo. 6.6% Monthly Live-Aboard Fees (houseboat) $145.00 / Mo $165.00 / Mo. 20% Monthly Launch Ramp $25.00 / Mo $30.00 20% Seasonal Launch Ramp $100.00 $120.00 20% Merchandise Booth Fee $100.00 New Fee Food Booth Fee $500.00 New Fee Multiple Berth Incentive ** (5-10) -10% Multiple Berth Incentive ** (11-20) -20% Multiple Berth Incentive**(more than 20) -30% Actual boat length x base rate for that length boat* Reduction from base rate** Other FY 2012 Fees (unchanged) 20 feet to 21feet $7.30 / Ft 22 feet to 24 feet $7.72 / Ft Monthly Live-Aboard Fees (boat) $145.00 / Mo Labor Fees (per occurrence) $75.00 Wait List Fees $40.00 Daily Visitor Berth Fees (per foot) $ 0.50 / Day Chaining Fee (per occurrence) $100.00 Electronic key passes (each) $15.00 Annual Hoist Fee $36.00 / Yr Tide Books $1.00 Ea. Daily Impound Fee $55.00 Lien Fees $100.00 Charter Boat Fee (public dock) $35.00 per event + $1.00 per person Transfer Fees $25.00 Event Parking Fee $10 per vehicle, per event Daily Launch Ramp Fee $15.00 / Day Dry Storage 28X8 (monthly) $95.00 / Mo. Dry Storage 24X8 (monthly) $85.00 / Mo. Upwind Premium 10% of Base Berth Rent Single Berth Premium 10% of Base Berth Rent Page 5
Attachment 2 Survey of Bay Area Marina Rates (February 2011) (With proposed Berkeley Marina Fee Increase for FY 2012) Clipper Yacht Marina Jack London Square Marina Richardson Bay Marina Ballena Isle Marina Santa Cruz Harbor Union Point Marina Benicia Marina Pier 39 Marina Village Yacht Harbor Treasure Isle Marina South Beach Harbor Emeryville City Marina Embarcadero Cove Marina Bay Yacht Harbor Grand Marina Loch Lomond Marina Emery Cove Yacht Harbor Berkeley Marina San Francisco Marina Delta Marina Brickyard Cove Marina Oyster Cove Marina Pillar Point Harbor Glen Cove Marina Alameda Marina Pete's Harbor Fortman Marina Redwood City Yacht Harbor Vallejo Marina Monterey Municipal Marina Coyote Point Marina San Leandro Marina Oyster Point Marina Laurizen Yacht Harbor Antioch Marina Moss Landing Harbor District Pittsburg Marina Brisbane Marina Pt. San Pablo $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Page 6
RESOLUTION NO. N.S. ESTABLISHING FEES TO BE CHARGED AT THE MARINA AND RESCINDING RESOLUTION NO. 64,457-NS WHEREAS, the City s costs to operate facilities, provide services and undertake capital improvements at the Berkeley Marina have increased with inflation, rising staff costs, and an aging infrastructure; and WHEREAS, at its meeting of April 9, 2011, the Waterfront Commission reviewed the Marina budget and the proposed increases in fees and, after receiving public comment, motioned to recommend to the City Council that the proposed fee increases for Fiscal Year 2012 be adopted as proposed. Moved, seconded, carried (Catalfo/Beier; Ayes Beier, Catalfo, McKay, McGrath; Nayes none; Recused Kamen). NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the attached Marina Fee Schedule (Exhibit A) is hereby established for use by the general public for facilities at the Berkeley Marina, effective July 1, 2011. BE IT FURTHER RESOLVED that Resolution No. 64,457-N.S. all amendments are hereby rescinded. Exhibits A: Marina Fee Schedule FY2012
Marina Fee Schedule FY 2012 Exhibit A Monthly Base Berth Rate per foot FY 2012 20 feet to 21feet $ 7.30 / Ft 22 feet to 24 feet $ 7.72 / Ft 25 feet to 29 feet $ 8.69 / Ft 30 feet to 39 feet $ 9.20 / Ft 40 feet to 49 feet $ 9.75/ Ft 50 feet to 59 feet $ 10.33 / Ft 60 feet to 69 feet $ 10.97 / Ft 70 feet to 79 feet $ 11.60 / Ft 80 feet to 89 feet $ 12.29 / Ft Limited Access Berth Length x Rate Dry Storage 24X8 (monthly) $ 85.00 / Mo. Dry Storage 28X8 (monthly) $ 95.00 / Mo. Skiffs (Side ties < 20 Feet) $ 80.00 / Mo. Daily Launch Ramp Fee $ 15.00 / Day Storage Lockers (monthly) $ 25.00 / Mo. Multiple Berth Incentive ** (5-10) -10% off Base Rate Multiple Berth Incentive ** (11-20) -20% off Base Rate Multiple Berth Incentive ** (more then 20) -30% off Base Rate Other Fees FY 2012 Monthly Live Aboard Fees (Boat) $ 145.00 / Mo Monthly Live Aboard Fees (Houseboat) $ 165.00 / Mo Labor Fees (per occurrence) $ 75.00 Wait List Fees $ 40.00 Monthly Launch Ramp $ 30.00 / Mo Seasonal Launch Ramp $ 120.00 Daily Visitor Berth Fees (per foot) $ 0.50 / Day Chaining Fee (per occurrence) $ 100.00 Electronic key passes (each) $ 15.00 Annual Hoist Fee $ 36.00 / Yr Tide Books $ 1.00 Ea. Daily Impound Fee $ 55.00 Lien Fees $ 100.00 Charter Boat Fee (public dock) $35.00 per event + $1.00 per person Transfer Fees $ 25.00 Event Parking Fee $ 10 per vehicle, per event Merchandise Booth Fee $100.00 Food Booth Fee $500.00
Attachment 4 Office of the City Manager NOTICE OF PUBLIC HEARING BERKELEY CITY COUNCIL CITY COUNCIL CHAMBERS, 2134 MARTIN LUTHER KING JR. WAY FEES: BERKELEY MARINA - FISCAL YEAR 2012 TUESDAY, MAY 17, 2011 AT 8:00 P.M. The Department of Parks Recreation and Waterfront is proposing to implement new fees at the Berkeley Marina as follows: 1) establish a new rate schedule in the Marina increasing berth and skiff fees by up to 6.7%; 2) increase Houseboat Live Aboard fees by 20% ($25); 3) increase Monthly and Seasonal Small Boat Launch Ramp Fees by 20% ($5); 4) eliminate the Waiting List Fee; 5) establish a special rate for limited access berths; and 6) establish new fees for Food and Merchandise Booths; 7) establish new discounts for Multiple Berth Rental and 8) rescind Resolution No.64,457-N.S. A table of the existing and proposed new rates is posted at: http://www.cityofberkeley.info/citycouncil/publichearings/2011/ For further information, please contact John Mann, Waterfront Manager, at 981-6737. A copy of the agenda material for this hearing will be available on the City s website at www.ci.berkeley.ca.us as of Thursday, May 5, 2011. Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, in order to ensure delivery to all Council members and inclusion in the agenda packet. Comments received no later than Monday, May 2, 2011 will be included in Council agenda packets. Comments received thereafter will be submitted to Council as supplemental communications at the meeting. For further information, call Deanna Despain, CMC, City Clerk, 981-6900. FAX: (510) 981-6901. TDD: (510) 981-6903. Published: May 6 and May 13, 2011 The Berkeley Voice Per Gov. Code 6062A ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of Council Chambers, 2134 Martin Luther King Jr. Way, as well as on the City s website, on May 5, 2011 2180 Milvia Street, Berkeley, CA 94704 Tel: (510) 981-7000 TDD: (510) 981-6903 Fax: (510) 981-7099 E-Mail: manager@cityofberkeley.info Website: http://www.cityofberkeley.info/manager
Marina Rate Schedule FY 2012 Monthly Base Berth Rate per foot FY 2012 20 feet to 21feet $ 7.30 / Ft 22 feet to 24 feet $ 7.72 / Ft 25 feet to 29 feet $ 8.69 / Ft 30 feet to 39 feet $ 9.20 / Ft 40 feet to 49 feet $ 9.75/ Ft 50 feet to 59 feet $ 10.33 / Ft 60 feet to 69 feet $ 10.97 / Ft 70 feet to 79 feet $ 11.60 / Ft 80 feet to 89 feet $ 12.29 / Ft Limited Access Berth Length x Rate Dry Storage 24X8 (monthly) $ 85.00 / Mo. Dry Storage 28X8 (monthly) $ 95.00 / Mo. Skiffs (Side ties < 20 Feet) $ 80.00 / Mo. Daily Launch Ramp Fee $ 15.00 / Day Storage Lockers (monthly) $ 25.00 / Mo. Multiple Berth Incentive ** (5-10) -10% off Base Rate Multiple Berth Incentive ** (11-20) -20% off Base Rate Multiple Berth Incentive ** (more then 20) -30% off Base Rate Other Fees FY 2012 Monthly Live Aboard Fees (Boat) $ 145.00 / Mo Monthly Live Aboard Fees (Houseboat) $ 165.00 / Mo Labor Fees (per occurrence) $ 75.00 Wait List Fees $ 40.00 Monthly Launch Ramp $ 30.00 / Mo Seasonal Launch Ramp $ 120.00 Daily Visitor Berth Fees (per foot) $ 0.50 / Day Chaining Fee (per occurrence) $ 100.00 Electronic key passes (each) $ 15.00 Annual Hoist Fee $ 36.00 / Yr Tide Books $ 1.00 Ea. Daily Impound Fee $ 55.00 Lien Fees $ 100.00 Charter Boat Fee (public dock) $35.00 per event + $1.00 per person Transfer Fees $ 25.00 Event Parking Fee $ 10 per vehicle, per event Merchandise Booth Fee $100.00 Food Booth Fee $500.00