Marina Advisory Commission

M A R I N A A DV I S O RY C OMMITTEE December 6, 2021 Marina Advisory Committee Meeting 12.6.2021 Master Page 1 of 12  Marina Advisory Committee December 6, 2021 at 6:00 p.m. Committee Members Ken Hulett, Chairman J.J. Jones, Vice-Chairman Steve Hucke Ryan Bradley Curtis Adams Due to COVID-19, there will be NO physical meeting location per WA Proclamation 20-28. To listen to the live meeting, please call 1(650)242-4929, Meeting ID: 147 322 9451 (NOTE: Audio Only, No Comments - For Comments, Email csublet@oakharbor.org) 1. Public Comment 2. Review of the November 1, 2021, meeting notes 3. Marina Dredge Bond Rate Increase – Discussion & Recommendation 4. General Marina Update 5. Marina Advisory Committee Comments 6. Next Meeting – TBD (January 3rd or 10th 2022) 7. Adjourn Marina Advisory Committee Meeting 12.6.2021 Master Page 2 of 12  REVIEW OF M EETING N OTES F RO M N OV E M B E R 6 , 2021 Marina Advisory Committee Meeting 12.6.2021 Master Page 3 of 12  City of Oak Harbor December 6, 2021 Marina Advisory Committee 6:00 p.m. Regular Meeting Agenda Virtual Meeting Roll Call: Mr. K. Hulett __X__ Mr. J. Jones __X__ Mr. S. Hucke __X__ Mr. Ryan Bradley_ X____ Mr. Curtis Adams __X__ Staff: Mr. Blaine Oborn, Mr. David Goldman & Mr. Chris Sublet Public: Mr. Byron Skubi 1. Public Comment: • Mr. Skubi asked if it would be possible to get a report on the cost of the fish pen project, including current and future expenses. 2. Review of the October 4, 2021, Meeting Minutes: • Approved, as written. 3. Marina Dredge Bond Rate Increase – Discussion Mr. Hulett introduced the agenda item and Mr. Sublet explained that was a carryover item from the September and October meetings. Mr. Hulett and Mr. Sublet gave a report on their presentation to the City Council at the October 27, 2021, workshop. They also explained that there were options for paying off the bond and that the goal of this discussion was to provide more information before a formal recommendation was made by the MAC. Discussion The MAC discussed the merits of comparing the Oak Harbor Marina with other marinas. They questioned why the financial burden of the marina is on the tenants when it is open to the public. The MAC also discussed asking the City Council to fund at least 50% of the project with “general” fund money and/or reducing the Indirect Cost Allocation to assist with paying for the next dredging effort. The discussion also included a discussion on if the 3% rate increase scheduled for April 2022 should occur. They concluded by discussing making a possible formal recommendation at the December meeting. Action No action was taken. 4. General Update • Mr. Sublet gave an update on the Wi-Fi, log boom replacement, breakwater, fish pens and Neil Ketchum’s retirement in January. 5. MAC Comments • Mr. Adams – commented on why we would enhance the beach and add new sand when we are planning on dredging. He said that it appeared that when we did this in 2010 all the new sand washed back into the marina and may have been counterproductive. 6. Next regular meeting— December 6, 2021 7. Adjourn Marina Advisory Committee Meeting 12.6.2021 Master Page 4 of 12 M A R I N A D R E D G E B O N D R AT E INCREASE Discussion & Recommendation Marina Advisory Committee Meeting 12.6.2021 Master Page 5 of 12  City of Oak Harbor Oak Harbor Marina Memo To: Marina Advisory Committee From: Chris Sublet, Harbormaster CC: Date: 12/06/2021 Re: Marina Dredge Fee Rate Increase – Discussion & Recommendation At the July 5, 20021 Marina Advisory Committee (MAC) meeting the MAC was presented with three options for refinancing the dredge bond. The three options were: A. Level Savings – 10 Year. This would reduce the amount of the annual payments to provide a savings each year. B. Consistent Payments – 10 Year. This would keep the payments at the current level and shorten the final maturity, realizing nearly all savings in year ten. C. Accelerated Payments – 5 Year. This would increase the payments for the first five years to pay off the debt in half the time. This provides the greatest level of interest savings over the life of the loan. The MAC made a formal recommendation to adopt option C. At the July 13, 2021, City Council meeting, Staff presented the Dredge Bond refinance options to the City Council. The City Council discussed the options and determined that they needed more information before they could decide to raise the dredge fee rate or not. At the July 28, 2021, City Council Workshop, the options were again presented, and the City Council adopted option C. At the September 6, 2021, Marina Advisory Committee meeting the MAC discussed the dredge fee rate increase options and requested to review the marina revenue and expenses. They also asked to review the bond refinance details and the amortization schedule. At the October 4, 2021, meeting staff presented the MAC with 3 years of historical financial information as well as the options for repaying the refinanced dredge bond. Staff also included answers (attachment A) from the City of Oak Harbor Finance Director Dave Goldman, that were asked by the MAC at the September meeting At the November 1, 2021, meeting staff presented the MAC with 4 years of “stepped” dredge fee increases, plus the annual 3% increase for the common sizes. The MAC discussed the stepped increase and the 3% increase and determined that they only wanted to see the stepped dredge fee increase amounts and that they would discuss the 3% increase as a separate item at a future meeting. 1 Marina Advisory Committee Meeting 12.6.2021 Master Page 6 of 12 The next step in the process is to determine the appropriate rates for the dredge fee to fund the new dredge bond payments. The options are: A. Do nothing, leave the dredge fee at $1.03 per foot and pay the fees out of the marina reserves. a. This option will result in approximately $709,661 being used from the marina reserves. b. It is likely that a significant rate increase will be needed in the future to build the reserves back up and to pay for the new dredge effort. B. Increase the dredge fee to $2.16 to completely pay for the dredge bond fees. a. This option will not utilize any of the marina reserves. b. This option may put a financial burden on some tenants and force them to leave the marina. c. It is likely that the dredge fee may not have to be increased once the new dredging bond is purchased. C. Incrementally increase the dredge fee to $2.16 over the next 4 years (attachment A). a. Will utilize some of the marina reserves. b. This option may result in some tenants leaving the marina. c. An example of this option, using a 32’ boat (average size of boat), is: Rate Per Foot 32 Foot (plus Additional Reserves Used tax) Funds Generated Current $1.03 $37.19 $0.00 $157,000 Year 1 $1.31 $47.39 $39,250 $117,750 Year 2 $1.60 $57.59 $78,500 $78,500 Year 3 $1.88 $67.79 $117,750 $39,500 Year 4 $2.16 $78.00 $157,000 $0.00 Total Reserves $392,750 Used Staff is seeking a formal recommendation for the four-year stepped dredge fee increase from the Marina Advisory Committee. Please contact Chris Sublet at 360.279.4576 if you have any questions. Attachments A. Common size stepped dredge fee increase rates and comparison ⚫ Page 2 Marina Advisory Committee Meeting 12.6.2021 Master Page 7 of 12  Attachment A MOORAGE RATES COMPARISON 2022 - 2024 Monthly Rates Proposed Monthly Rates - Includes all taxes and fees 24 foot 28 foot 32 foot 36 foot 40 foot 50 foot 60 foot Open Cov Open Cov Open Cov Open Cov Open Open Cov Open Best Average $222.03 $237.36 $265.35 $336.86 $347.48 $472.19 $384.79 $543.82 $516.12 $646.93 $969.68 $934.17 OH existing $193.20 $251.12 $239.28 $307.25 $276.90 $368.30 $317.71 $455.99 $358.37 $491.49 $735.33 $610.80 Difference -28.83 13.76 -26.07 -29.61 -70.58 -103.89 -67.08 -87.83 -157.75 -155.44 -234.35 -323.37 % of Average 87.0% 105.8% 90.2% 91.2% 79.7% 78.0% 82.6% 83.8% 69.4% 76.0% 75.8% 65.4% Proposed 2022 Rates with $1.31 Dredge Fee Best Average222.03 237.36 265.35 336.86 347.48 472.19 384.79 543.82 516.12 646.93 969.68 934.17 OH 200.79 258.71 248.13 316.10 287.01 378.41 328.55 467.37 371.01 507.29 751.33 617.57 Difference -21.24 21.35 -17.22 -20.76 -60.47 -93.78 -56.24 -76.45 -145.11 -139.64 -218.35 -316.60 % of Average 90.4% 109.0% 93.5% 93.8% 82.6% 80.1% 85.4% 85.9% 71.9% 78.4% 77.5% 66.1% Proposed 2023 Rates with $1.60 Dredge Fee Best Average222.03 237.36 265.35 336.86 347.48 472.19 384.79 543.82 516.12 646.93 969.68 934.17 OH 208.64 266.56 257.29 325.26 297.48 388.88 340.03 478.85 384.11 523.65 767.69 637.21 Difference -13.39 29.20 -8.06 -11.60 -50.00 -83.31 -44.76 -64.97 -132.01 -123.28 -201.99 -296.96 % of Average 94.0% 112.3% 97.0% 96.6% 85.6% 82.4% 88.4% 88.1% 74.4% 80.9% 79.2% 68.2% Proposed 2024 Rates with $1.88 Dredge Fee Best Average222.03 237.36 265.35 336.86 347.48 472.19 384.79 543.82 516.12 646.93 969.68 934.17 OH 216.22 274.14 266.14 334.11 307.59 398.99 351.70 490.52 396.75 555.81 783.77 675.80 Difference -5.81 36.78 0.79 -2.75 -39.89 -73.20 -33.09 -53.30 -119.37 -91.12 -185.91 -258.37 % of Average 97.4% 115.5% 100.3% 99.2% 88.5% 84.5% 91.4% 90.2% 76.9% 85.9% 80.8% 72.3% Proposed 2025 Rates with $2.16 Dredge Fee Best Average222.03 237.36 265.35 336.86 347.48 472.19 384.79 543.82 516.12 646.93 969.68 934.17 OH 223.80 281.72 274.98 342.95 317.71 409.11 363.07 501.89 409.38 571.61 799.57 694.76 Difference 1.77 44.36 9.63 6.09 -29.77 -63.08 -21.72 -41.93 -106.74 -75.32 -170.11 -239.41 % of Average100.8% 118.7% 103.6% 101.8% 91.4% 86.6% 94.4% 92.3% 79.3% 88.4% 82.5% 74.4% Marina Advisory Committee Meeting 12.6.2021 Master Page 8 of 12 G E N E R A L M A R I N A U P DAT E Discussion Marina Advisory Committee Meeting 12.6.2021 Master Page 9 of 12  City Administrator's Report November 2021 Marina Reporting Period October 1 - October 31, 2021 Occupancy Dock Total Slips Total Total Vacant Percent Occupied Occupied A 53 53 0 100% B 82 74 8 90% C 55 53 2 96% D 85 54 31 64% E 71 63 8 89% F 52 45 7 87% G 15 15 0 100% S 8 8 0 100% Totals 421 365 56 87% 90% Sep-21 Total Slips Total Total Vacant Percent Occupied Totals 421 396 25 94% Oct-20 Total Slips Total Total Vacant Percent Occupied Totals 421 374 47 89% Summary *There are the 31 more vacancies in October than in September 2021. *The overall occupancy of the docks was 87% * -7.4% Compared to September * -2% loss Compared to October 2020 *The average percentage of occupancy on each dock was 90% in October * -7.4% Compared to September * -2% loss compared to October 2020 Marina Monthly Revenue SLS Moorage $60,636.10 Storage Unit $11,236.68 Fence line Storage $1,747.05 Gasoline $12,605.02 (3090.060 Gallons) Diesel $17,883.87 (6117.751 Gallons) Total $104,108.72 Marina Advisory Committee Meeting 12.6.2021 Master Page 10 of 12 M A R I N A A DV I S O RY C O M M I T T E E C OMMENTS Discussion Marina Advisory Committee Meeting 12.6.2021 Master Page 11 of 12 N E X T M E E T I N G — T B D ( J A N UA RY 3 R D OR 10TH 2022 ) Adjourn Marina Advisory Committee Meeting 12.6.2021 Master Page 12 of 12